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Speakers:

Mr. Hu Heping, executive deputy director of the Publicity Department of the Communist Party of China (CPC) Central Committee

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

Chairperson:

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

Date:

June 24, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This year marks the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. A series of commemorative activities will be held and have drawn widespread public attention across all sectors of society. Today we have invited Mr. Hu Heping, executive deputy director of the Publicity Department of the Communist Party of China (CPC) Central Committee, and Major General Wu Zeke, deputy director of the Leading Group Office of Military Parade and deputy director general of the Operation Bureau of the Joint Staff Department of the Central Military Commission, to brief you on plans for the commemorative activities and take your questions.

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

Hu Heping:

Good afternoon. I am very pleased to introduce the plans for marking the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War.

Eighty years ago, after 14 years of arduous and heroic struggle, the Chinese people secured a great victory in the War of Resistance Against Japanese Aggression, marking the full triumph in the World Anti-Fascist War. This great victory belonged not only to the Chinese people, but also to the peoples of the world. On the occasion of the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, grand commemorative events will be held to bear history in mind, honor all those who laid down their lives, and carry forward the great spirit of patriotism and resistance against aggression. These efforts carry profound and lasting significance. In March this year, the CPC Central Committee and the State Council issued a special notice, making overall arrangements for the commemorative activities. Now, let me give you a brief overview.

First, on the morning of Sept. 3, in the name of the CPC Central Committee, the Standing Committee of the National People's Congress (NPC), the State Council, the National Committee of the Chinese People's Political Consultative Conference (CPPCC), and the Central Military Commission, a grand ceremony to commemorate the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War will be held at Tian'anmen Square in Beijing, including a military parade. General Secretary Xi Jinping will deliver an important speech. At noon on Sept. 3, a reception will be held in Beijing, and General Secretary Xi Jinping will deliver an important speech. On the evening of Sept. 3, a commemorative gala will be held in Beijing, to be attended by Party and state leaders.

Second, in the name of the CPC Central Committee, the State Council and the Central Military Commission, the "80th Anniversary of the Victory in the Chinese People's War of Resistance Against Japanese Aggression" commemorative medals will be awarded to surviving veterans, comrades and generals of the war or their surviving family members. Authorities across all regions and relevant departments will organize commemorative visits to honor surviving veterans, comrades and generals of the war, their bereaved families, and the relatives of martyrs.

Third, on July 7, a ceremony commemorating the 88th anniversary of the beginning of China's whole-nation resistance war against Japanese aggression will be held at the Museum of the War of Chinese People's Resistance Against Japanese Aggression in the name of the CPC Central Committee, the State Council and the Central Military Commission. The event will concurrently inaugurate a themed exhibition titled "For National Liberation and World Peace: Commemorating the 80th Anniversary of Victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War."

Fourth, around Sept. 3, to commemorate the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, symposiums will be held with compatriots from Hong Kong, Macao and Taiwan, as well as overseas representatives. An international academic conference will also be convened.

Fifth, on Sept. 18, a bell-tolling and siren ceremony to remember September 18 Incident will be held at the 9.18 Historical Museum in Shenyang, Liaoning province, in the name of the CPC Liaoning provincial committee and the Liaoning provincial government.

Sixth, around Oct. 25, a gathering will be held to mark the 80th anniversary of Taiwan's recovery from Japanese occupation. Overseas Chinese will be supported in organizing related commemorative activities locally.

Seventh, on Dec. 13, a national memorial ceremony for the victims of the Nanjing Massacre will be held at the Memorial Hall of the Victims in Nanjing Massacre by Japanese Invaders in Nanjing, in the name of the CPC Central Committee and the State Council.

Eighth, the fourth batch of national-level anti-Japanese aggression war memorial facilities and sites, and a new list of renowned martyrs and heroic groups from the Chinese People's War of Resistance Against Japanese Aggression will be officially released. Restoration and preservation efforts will be undertaken to repair and protect war memorial facilities, sites and relics. And a batch of high-quality war-themed exhibitions will be promoted.

Ninth, to commemorate the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, a series of cultural works and themed publications will be produced and released, while academic research will be intensified with the establishment of priority research projects. In addition, commemorative coins and stamps will also be issued.

Tenth, local authorities and departments will organize community-based commemorative activities tailored to their specific contexts. Hong Kong and Macao will also organize a series of commemorative activities.

These events make up the main schedule. The CPC Central Committee has clearly required that all commemorative activities must strictly comply with the Party Central Committee's eight-point decision on conduct and its rules for implementation, rigorously enforce the Regulations on Practicing Thrift and Opposing Waste in Party and Government Organs, prevent formalism and avoid extravagance, ensuring that the events are both solemnly conducted and pragmatically modest.

That is all from me. Thank you.

Shou Xiaoli:

Now, let's invite Mr. Wu to give his introduction.

Wu Zeke:

Good morning everyone, and welcome all our friends from the media. It's my pleasure to present the details of the military parade to you all.

The CPC Central Committee and the Central Military Commission have decided that a grand military parade will be held at Tian'anmen Square in Beijing on Sept. 3. General Secretary of the CPC Central Committee, President of the People's Republic of China, and Chairman of the Central Military Commission Xi Jinping will inspect the troops at the military parade.

This parade is an important part of the activities commemorating the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. The theme is to commemorate the great victory and promote the great spirit of the Chinese People's War of Resistance Against Japanese Aggression. The purpose is to highlight the historical significance of the Chinese People's War of Resistance Against Japanese Aggression as the main theater in the East during the Global War against Fascism and its significant contribution to victory in the World Anti-Fascist War, to underscore the pivotal role of the CPC during the war, to demonstrate China's firm commitments to safeguarding the fruits of World War II and upholding international fairness and justice, as well as its active efforts in building a community with a shared future for mankind. It also aims to fully demonstrate the firm political awareness and practical actions of the People's Liberation Army (PLA) in absolute loyalty to the core leadership of the CPC Central Committee, as well as the excellent conduct through enhancing its political loyalty, the new structure of military strength, new progress in its modernization, and the new achievements in its training under combat conditions. It further demonstrates China's strong will and capabilities to resolutely safeguard its national sovereignty, security and development interests, and to firmly maintain world peace. All of this is intended to inspire the entire Party, army, and people of all ethnic groups in the country to unite more closely around the CPC Central Committee with Comrade Xi Jinping at its core, strive to achieve the centenary goal of building a strong military on schedule, accelerate the building of the PLA into a world-class military, and to strive for the comprehensive promotion of the great cause of building a strong country and national rejuvenation through Chinese modernization.

The military parade will consist of foot formations, equipment formations and aerial formations. In its overall design, the parade has made well-coordinated arrangements for the participation of units from the People's Liberation Army (PLA) and the People's Armed Police Force, with each formation and echelon carefully organized. It features three main characteristics: First, it highlights both historical legacy and contemporary features. On the one hand, by showcasing the historical designations, honors and unique spirit of the wartime units, the parade will pay tribute to fallen heroes, honor military merits and carry forward the indomitable spirit of the Chinese People's War of Resistance Against Japanese Aggression. It reflects the enduring legacy forged by the sacrifice and blood of heroes, a legacy that remains deeply rooted in the hearts of the Chinese people and continues to inspire the armed forces to resolutely safeguard the nation and national dignity. On the other hand, the parade will highlight the PLA's new organizational structure, enhanced capabilities and fresh image, showcasing the historic achievements and transformative progress of the military in the new era, as well as its firm strides toward becoming a world-class military. Second, it reflects the distinctive features of various military branches while demonstrating integrated joint operations. The foot formations will focus on presenting the new structure and composition of military branches following reforms, as well as the integration of standing forces, reserve forces and militia. The equipment formations will highlight the latest advances in China’s weapons systems, and the integration of multiple platforms and units will showcase new models of joint command, joint operations and joint support, demonstrating the PLA's capability for independent innovation in defense technologies. The aerial formations will display the systematic strength and rapidly improving combat capabilities of China's air-based combat capabilities. Third, the parade will feature both traditional mainstay combat forces and emerging strategic forces. All weapons and equipment on display are domestically developed and currently in service. In addition to showcasing the new generation of conventional weaponry, the parade will also feature emerging forces, including unmanned and intelligent systems, undersea combat units, cyber electronic operations and hypersonic weapons, demonstrating the PLA's strong capacity to adapt to technological advances, the evolution of warfare and the demands of future battlefields. In addition, the design of the review procedures, the ceremonial atmosphere and the integration of elements commemorating the Chinese People's War of Resistance Against Japanese Aggression will feature several innovative touches. For example, a joint military band has been formed to perform classic songs popular during the Chinese People's War of Resistance Against Japanese Aggression, as well as military pieces rich in contemporary and combative spirit. These arrangements aim to evoke historical memory, pay tribute to the fallen heroes and experience the powerful, uplifting atmosphere of the parade, creating a solemn and grand commemorative occasion.

At present, preparations are being carried out in an orderly manner in accordance with the overall plans approved by the CPC Central Committee and the Central Military Commission. The relevant work has received strong support from central Party and government departments as well as the Beijing municipal government. This parade upholds the principle of building the military in a diligent and thrifty manner. It makes full use of existing resources and conditions to maximize efficiency and cost-effectiveness.

We firmly believe that under the strong leadership of the CPC Central Committee, the Central Military Commission and General Secretary Xi Jinping, and through the joint efforts of all the officers and soldiers participating in the parade, we will present a grand military parade that promotes the great spirit of resisting aggression, embodies the characteristics of the times and has the demeanor of a major country to both Chinese people and people all over the world. 

That's all for my introduction. Thank you.

Shou Xiaoli:

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

CCTV:

Just now, Mr. Hu introduced the overall arrangements for the commemorative events, which seem very grand. What is the main purpose for doing this? Also, what will the features be? Thank you.

Hu Heping:

As you just said, these commemorative events will indeed be very grand. The Chinese People's War of Resistance Against Japanese Aggression was a national liberation struggle against the longest and largest-scale foreign invasion with the largest number of casualties in modern Chinese history, making a significant contribution to the victory in the World Anti-Fascist War. The theme of the commemorative events this time is "Bear History in Mind, Honor All Those Who Laid Down Their Lives, Cherish Peace, and Open up the Future." They aim to remember the arduous struggle of the Chinese people against Japanese militaristic aggression, honor the heroes and martyrs who bravely sacrificed their lives in the Chinese People's War of Resistance Against Japanese Aggression and all those who contributed to the war, declare the Chinese people's unwavering commitment to the path of peaceful development and to resolutely safeguarding world peace, and draw wisdom and strength from history to create a brighter future.

In recent years, the Party and the state have annually arranged commemorative events for the outbreak and victory of the Chinese People's War of Resistance Against Japanese Aggression, the September 18th Incident, and the National Memorial Day for the Nanjing Massacre Victims. We feel that the commemorative events this time have the following several characteristics:

First, the commemorative events are of a high level. Commemorating the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War is a major event for the Party and the state this year. Among the plans just introduced, there will be five events held in the name of the Party and the country: the commemorative ceremony, reception, medal presentation, themed exhibition opening and national memorial ceremony. The reason for arranging so many high-level events is to show the Party and the government's respect for history and reverence for martyrs and heroes, and to better cultivate and inspire people's patriotism.

Second, the commemorative events cover a wide range of aspects. The victory in the Chinese People's War of Resistance Against Japanese Aggression is a grand epic of the Chinese people all making concerted efforts and of the weak defeating the strong. All localities and departments will also hold related commemorative events in accordance with the unified arrangements of the CPC Central Committee. Provinces and key cities where important historical events, major battles and significant anti-Japanese armed forces activities occurred during the war will organize symposiums, academic seminars and other activities and hold exhibitions of pictures, calligraphy works, paintings and cultural relics. Compatriots in Hong Kong, Macao and Taiwan and overseas Chinese will also organize related commemorative activities to pass on the collective memory of the Chinese nation.

Third, the commemorative events value public participation. In April, the Publicity Department of the CPC Central Committee, together with relevant departments, issued a notice. This clarified the arrangements for mass commemorative activities to celebrate the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, and required all localities and departments, in line with their actual conditions, to make good use of various grassroots cultural strengths and widely carry out mass commemorative activities with clear themes, diverse forms and rich educational significance, vigorously promoting the great spirit of resisting aggression throughout the society.

At the same time, we will also invite international friends to participate in the commemorative events, hold international academic seminars, promote a batch of excellent works on the theme of the Chinese People's War of Resistance Against Japanese Aggression, and organize domestic special exhibition halls to hold special exhibitions in other countries. We also welcome all peace-loving countries and individuals in the world to pay attention to and participate in China's commemorative events, and jointly commemorate the hard-won great victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. Thank you.

Phoenix TV:

The 2015 military parade commemorating the 70th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression featured a formation of war veterans riding in vehicles, demonstrating respect for those who fought in the war. Will war veterans also be included in the upcoming parade? Will the Chinese Kuomintang (KMT) party veterans who fought against Japanese aggression be invited to attend? Thank you.

Wu Zeke:

Thanks for your question. I'll take this one. Veterans of the Chinese People's War of Resistance Against Japanese Aggression are national heroes, the backbone of the nation, and living witnesses to victory. More than 80 years ago, these veterans stepped forward in times of crisis, fighting for the nation, for the motherland, and for dignity, defending the vast territory of their homeland. Their heroic spirit in bloody battles, their unwavering determination in resisting foreign aggression, and their noble character of sacrifice are worthy of our eternal respect. In 2015, during the military parade commemorating the 70th anniversary of the victory of the Chinese People's War of Resistance Against Japanese Aggression, a formation of more than 300 veterans was arranged as the first group to be reviewed. This formation included veterans, model representatives of those who supported the frontlines, and children of martyrs. Veterans of the KMT forces who fought against Japanese aggression were also invited to participate, demonstrating our deep respect for these heroic predecessors and the great spirit of national resistance. As they passed through Tian'anmen, there were many deeply moving moments that touched people of all ethnic groups across the country and around the world. Ten years have passed. Most of the surviving veterans are now approaching 100 years old. These veterans are witnesses to and participants in history, and they are treasures of the Chinese nation. Considering factors such as their physical conditions, we will not organize a formation of veterans to participate in this parade. Instead, we will arrange for veterans, comrades, members of the militia, local model representatives of those who supported the frontlines, and martyrs' relatives to attend the Tian'anmen ceremony, expressing our deep respect for these heroes. As we know, China's war of resistance was a nationwide effort, and the KMT forces also played a vital role. We will invite KMT veterans to attend the ceremony in person. Thank you.

Cover News:

This is the second commemorative parade marking the victory in the fight against Japanese aggression. What new elements or designs have been introduced this time to highlight the history of the war of resistance? Thank you.

Wu Zeke:

Thank you for your question and your interest in the parade. On Aug. 15, 1945, Japan unconditionally surrendered. The victory in the Chinese people's War of Resistance Against Japanese Aggression was a great triumph of justice over evil, light over darkness, and progress over the reactionary. This year marks the 80th anniversary of the Chinese People's War of Resistance Against Japanese Aggression. Organizing a military parade at Tian'anmen Square in the capital is a regular arrangement for major national commemorative days and an important part of commemorative activities. It carries profound political importance and far-reaching historical significance. This military parade highlights the theme of victory and incorporates several elements of the war of resistance and historical references into its design, mainly in three aspects. First, it aims to carry forward the legacy of the war of resistance. Most of the units participating in the parade have been selected from those with direct ties to the forces that fought in the war, including the Eighth Route Army, the New Fourth Army, the Northeast Anti-Japanese United Army, and the South China Guerrilla Force. This fully reflects the people's armed forces' arduous and extraordinary journey during the war and the historical inheritance of their revolutionary legacy. The second aspect is honoring merit and achievements. We have selected banners representing the honors and achievements of our military during the war of resistance, reflecting the great victories and lasting achievements made by the people's armed forces in the war of resistance. This expresses our deep remembrance of revolutionary martyrs, our enduring recognition of distinguished units with meritorious services, and our commitment to carrying forward fine traditions and conduct. The third aspect is revisiting historical classics. For this military parade, we have assembled a joint military band to perform well-known classics from the war of resistance. We have also specially designed parade-specific insignia and other elements, allowing people across the country to revisit the history of the war, understand its spirit, and inspire the people's armed forces to pledge to defend national and ethnic dignity at all costs. Thank you.

Bloomberg News:

Will leaders from other countries be invited to attend this parade and other activities? If so, what is the current progress?

Hu Heping:

According to the overall plan for the commemorative event, we will invite foreign leaders, former political dignitaries, senior officials, heads of international organizations, foreign envoys, military attaches and representatives of international organizations in China. We will also invite foreign friends who contributed to China's victory in the war, or representatives of their families, to attend the event. Relevant information will be released promptly. Thank you.

The Paper.cn:

Commemorating the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression is a major event for our country this year. Based on past experience, we typically release a range of outstanding literary and artistic works to commemorate such important occasions. Mr. Hu, could you share what kinds of works the public can expect to see this year? Thank you.

Hu Heping:

Thank you for your question. Let me give you a little preview in advance. Literature and art are the clarion call of the times and best reflect the spirit of an era. Eighty years ago, after 14 years of arduous and heroic struggle, the Chinese people defeated the brutal Japanese militarist invaders and secured a great victory in the Chinese People's War of Resistance Against Japanese Aggression. During this period, many outstanding works of art and literature emerged, inspiring people's fighting spirit and boosting national morale. Many of these works have stood the test of time and become classics. For example, our national anthem, "March of the Volunteers," was born amid the flames of the War of Resistance, inspiring countless sons and daughters of the Chinese nation to rise up and fight back. Another well-known piece, the "Yellow River Cantata," also gave voice to the heroic and unyielding spirit of the Chinese nation. We will broadcast and screen classic wartime literary and artistic works, allowing people to relive that history marked by blood and fire.

This year, we will also create and launch a series of films, dramas, music, dance, and artworks centered on the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. Many of these works are currently at a crucial stage of development. I will highlight a few examples from various fields. In film and television, we will release the movie "Mountains and Rivers as Witness," which depicts the hardships of 14 years of war of resistance, and "Dongji Rescue," which highlights the heroic deeds of Chinese fishermen. We are also producing the TV series "Our Homeland" and the documentary "Victory 1945." On stage, we are producing the Peking opera "Struggles in an Ancient City" and the stage play "Looking for Doolittle." We will also present a series of performances featuring outstanding stage works. In publishing, we will release works such as "Mao Zedong: Banner of the War of Resistance" and "A New History of the Second World War" and will organize a wide range of themed reading activities. I will stop here for now. Thank you.

China Daily:

The victory in the Chinese people's War of Resistance Against Japanese Aggression made tremendous sacrifices and important contributions to the Allies' victory in the World Anti-Fascist War. How has this parade been designed to reflect that? Will any international friends who contributed to China's victory be invited to attend? Thank you.

Wu Zeke:

Thank you for your questions. I will answer them. As the main theater of the World Anti-Fascist War in the East, the Chinese People's War of Resistance Against Japanese Aggression began the earliest and lasted the longest. During the 14 years of resistance, the Chinese battlefield held back and fought against the main forces of Japanese militarism for an extended period, eliminating more than 1.5 million Japanese troops. This played a decisive role in the ultimate defeat of the Japanese aggressors and made a significant historical contribution to the Allies' victory in the World Anti-Fascist War. China endured tremendous national sacrifice, with more than 35 million military and civilian casualties. In this military parade, we are incorporating key numbers such as "14" and "80" into the parade design to create a strong atmosphere of remembrance. At the same time, the Chinese people will never forget the valuable assistance and support provided by anti-fascist forces around the world, including peace-loving and justice-seeking countries, individuals and international organizations. For example, the Soviet Union provided China with many weapons and equipment; the American Flying Tigers volunteer group braved treacherous flights over the Himalayan supply route known as "the Hump"; Canadian doctor Norman Bethune came to China to save lives; and many anti-fascist fighters from various countries directly participated in China's War of Resistance. History shows that a just cause enjoys broad support while an unjust cause finds little. A just war will inevitably gain widespread backing and achieve ultimate victory. To showcase international friendship and cooperation and to commemorate the victory in the War of Resistance, we will invite international friends who contributed to China's victory, or representatives of their families, to observe the military parade. Thank you.

People's Daily:

A moment ago, when Minister Hu outlined the characteristics of the commemorative event, he placed special emphasis on "focusing on mass participation." What arrangements have been made for public commemorative activities? Thank you.

Hu Heping:

Thank you for your question. The successful organization of commemorative activities relies on the broad participation and support of the public. There are several specific arrangements for this year's public commemorative activities.

First, on key anniversaries such as the Victory Day of the Chinese People's War of Resistance Against Japanese Aggression, Martyrs' Day, the National Memorial Day for Victims of the Nanjing Massacre, and other key dates like July 7 and Sept. 18, the public will be invited to take part in commemorative activities. These include laying wreaths, visiting memorial facilities, paying respects at martyrs' graves and attending public memorial ceremonies.

Second, we will make full use of the educational role of memorial facilities, historic sites and relics related to the War of Resistance, as well as patriotism education bases and national defense education bases. Public visits will be organized, along with themed Party and Youth League activities and other events.

Third, we will carry out activities such as singing patriotic songs, reciting anti-Japanese war poetry, rereading family letters from that era, holding exhibitions of anti-Japanese war-themed literary works, and hosting competitions for storytellers of red history.

In addition to these diverse offline activities, a range of online activities will also be organized. For example, we will launch online exhibition halls and dedicated web pages, produce and broadcast multimedia content popular with the public, and organize online activities such as commemorations for martyrs, themed essay competitions, and knowledge quizzes. Our goal is to enable more people to take part in commemorative activities through the internet. Thank you.

PLA Daily and China Military Online:

The PLA has consistently participated in U.N. peacekeeping operations and humanitarian rescue efforts, and is a steadfast force in maintaining world peace. How will this military parade demonstrate China's determination and capability to safeguard world peace? Thank you.

Wu Zeke:

Thank you for your question. As we all know, U.N. peacekeeping operations were created to promote and preserve peace and have significantly contributed to global peace. This year marks the 35th anniversary of China's military participation in U.N. peacekeeping operations. Over the past 35 years, China has sent more than 50,000 peacekeepers to more than 20 countries and regions, including South Sudan and Lebanon, and has participated in 26 U.N. peacekeeping operations. So far, 17 officers and soldiers have given their lives for the cause of global peace. From mine clearance and explosive disposal to monitoring ceasefires, providing security and carrying out emergency rescues, Chinese peacekeepers have faced a wide range of challenges. No matter what lies ahead — whether the smoke of war or the threat of an epidemic — the officers and soldiers of the Chinese peacekeeping force have always been brave and fearless. They have fulfilled their mission and safeguarded security and stability. China's Blue Helmets have become a key force in U.N. peacekeeping operations, demonstrating China's firm support for multilateralism and the U.N. Charter and its purposes through concrete actions. They have stood firm as a disciplined force for peace and justice. This year's military parade will include troops that have participated in peacekeeping missions. This not only highlights the grand commemoration of the victory in the Chinese People's War of Resistance against Japanese Aggression, but also demonstrates China's responsibility as a major country in fulfilling its international obligations and maintaining world peace. China's military has always been a steadfast force in maintaining world peace. We will faithfully uphold the vision of a community with a shared future for mankind, actively fulfill the international military responsibilities of a major country, and comprehensively promote international military cooperation in the new era. We will provide more public security goods to the international community and make greater contributions to world peace and regional stability. Thank you.

Nanfang Daily, Nanfang Plus:

Recently, the SCIO released the emblem for the commemoration, which has attracted widespread attention since its unveiling. Could you share some background on the design and explain its significance? What message does it convey? Thank you.

Hu Heping:

First, thank you for taking an interest in the emblem for the commemoration. The emblem embodies the theme, spirit and sentiment of the commemoration and holds significant value. The emblem is composed of the Great Wall, olive branches, rays of light, the number "80" and the dates "1945-2025." The Great Wall symbolizes the entire nation's unity and bravery in the face of invasion, underscoring that the great national spirit, with patriotism at its core, was the decisive factor in achieving victory of the war against Japanese aggression. The olive branches represent the hard-won peace achieved by the Chinese people through their victory. They also signify that the Chinese people unite with people of all other countries to cherish and safeguard peace. The victory gate formed by rays of light symbolizes that the victory of the Chinese People's War of Resistance against Japanese Aggression and the World Anti-Fascist War is a victory of justice over evil, light over darkness, and progress over reaction. It indicates that the country has bright prospects for realizing national rejuvenation under the strong leadership of the CPC.

We believe this emblem highlights historical continuity and reflects the values of our times. It embodies Chinese elements, meets the needs of the present era, and captures the unique character of the commemoration. As the reporter just mentioned, since the release of the emblem, it has attracted significant attention and received positive comments and likes from many netizens. Some netizens commented that the emblem's design is simple and elegant, and carries deep significance. It seems the emblem is very well received. I would also like to take this opportunity to encourage media friends to help promote and make good use of the emblem. Thank you.

Lianhe Zaobao:

May I ask what new types of weapons and equipment will be featured in this year's military parade? Thank you.

Wu Zeke:

Thank you for your question. We understand that there is strong interest in the equipment that will be featured in this year's parade, so I would like to provide a general overview here. All the weapons and equipment to be showcased in this parade are domestically produced and serve as active-duty main battle equipment. They will represent a concentrated display of the Chinese military's system-based combat capabilities, new-domain and new-quality combat strength and strategic deterrence power. They also embody China's independent innovation capacity in weapons and equipment development. The main characteristics will be as follows:

The first characteristic is systematic integration. All the weapons and equipment in the parade have been carefully selected from the operational units of various military branches. They will include strategic strike capabilities, advanced operational and tactical equipment, and new types of capabilities designed to meet the demands of future warfare.

The second characteristic is the integration of all key operational components. The parade will include a range of forces, including command and control, reconnaissance and early warning, air and missile defense, strike capabilities, and integrated support units.

The third characteristic is a focus on combat readiness. The parade formations will be organized according to operational groupings, reflecting the principles of information-led operations, system-based support, elite troop deployment, and joint operational effectiveness. These weapons and equipment clearly feature greater strike precision, improved adaptability to battlefield conditions, and enhanced combat effectiveness. As we all know, during the Chinese People's War of Resistance Against Japanese Aggression, our military was severely under-equipped—relying primarily on homemade guns and cannons, broadswords and spears. Driven by the indomitable spirit captured in the saying, “if we lack guns and cannons, we’ll seize them from the enemy,” our troops we bravely resisted the Japanese invaders and achieved remarkable victories, often defeating stronger forces with inferior arms. However, this lack of advanced weapons and equipment also came at a tremendous cost. In recent years, we have made successive breakthroughs in a range of cutting-edge technologies and developed numerous advanced weaponry, ushering in a new stage in the development of our military equipment. Next-generation aircraft carriers, destroyers, stealth fighters, drones, strategic missiles and other critical national assets have been rapidly commissioned into active service. Our military has achieved leapfrog progress and historic milestones in weapons and equipment development, providing strong support for a substantial boost in combat capability and instilling greater confidence in our ability to fight and win wars. Thank you.

Xinhua:

We have noticed that this year, people in many countries around the world are commemorating the 80th anniversary of the victory in the World Anti-Fascist War in a variety of ways, revisiting that harrowing and heroic chapter in history. The earlier introduction mentioned several planned international exchange activities. What are the main considerations behind these arrangements? Thank you.

Hu Heping:

Thank you for your question. The victory in the Chinese People's War of Resistance Against Japanese Aggression marked a historical turning point, as the Chinese nation emerged from a period of deep crisis and began its path toward national rejuvenation. It was also a significant part of the victory in the World Anti-Fascist War. The Chinese People's War of Resistance Against Japanese Aggression received broad support from the international community. Additionally, the Chinese people will always remember the contributions made by people from various countries to China's victory in the war. Mr. Wu also touched on this point earlier.

In the World Anti-Fascist War, the Chinese People's War of Resistance Against Japanese Aggression was the first to begin and lasted the longest. The Chinese people bore the brunt of the main battlefield in the East during the World Anti-Fascist War, making immense national sacrifices. According to incomplete statistics, more than 35 million Chinese soldiers and civilians were killed or wounded. Based on 1937 price levels, direct economic losses exceeded $100 billion, and the indirect losses surpassed $500 billion. The Chinese battlefield tied down and fought the main forces of Japanese militarism, eliminating more than 1.5 million Japanese troops. This played a decisive role in the final defeat of the Japanese aggressors. China's War of Resistance played a strategic role in coordinating with and supporting Allied operations. It aligned with strategic actions on the European battlefield and in other parts of Asia, restraining and disrupting the strategic coordination efforts of the fascist powers of Japan, Germany, and Italy. This had a significant impact on the victory in the World Anti-Fascist War and contributed greatly to the global effort for peace.

The Soviet Union, the United States and the United Kingdom, along with other anti-fascist allies, provided valuable human and material support during the Chinese People's War of Resistance against Japanese Aggression. Canadian doctor Norman Bethune and Indian doctor Dwarkanath Kotnis traveled thousands of miles to China to save lives. French doctor Jean Jerome Augustin Bussiere delivered medical supplies by creating a "hump route by bike" through Japanese lines. German businessman John Rabe and Danish businessman Bernhard Arp Sindberg protected Chinese refugees during the Nanjing Massacre. Journalists such as Briton Michael Lindsay and internationalist fighter Hans Shippe actively reported on and publicized Chinese people's heroic resistance against Japanese aggression. The Chinese people will never forget their moving deeds and noble virtues.

The victory in the World Anti-Fascist War laid an important foundation for the construction of the post-World War II international order. The Chinese people will work together with all peace-loving countries and peoples around the world to promote an accurate understanding of World War II history, implement the Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative, and advance the building of a new type of international relations and a community with a shared future for mankind. Thank you.

Shou Xiaoli:

Please continue with your questions. We have time for one last question.

Beijing Radio and Television Station:

China's militia forces played an important role in the Chinese People's War of Resistance Against Japanese Aggression, and in several recent military parades, female militia contingents from various sectors of the capital have been organized to participate. What new arrangements or features are planned for this aspect in this year's parade? Thank you.

Wu Zeke:

I'll answer this. Thank you. As we all know, the militia is a component of China's armed forces and serves as an auxiliary and reserve force for the People's Liberation Army. During the Chinese People's War of Resistance Against Japanese Aggression, the militia forces not only engaged with the Japanese troops behind enemy lines, launching guerrilla warfare on an unprecedented scale, but also provided manpower, material support and logistical backing for the Eighth Route Army, the New Fourth Army and other main forces.They effectively coordinated with main forces to strike the Japanese invaders, making an indelible contribution to the victory of the war and writing an enduring chapter in the history of the people's war. Since the 18th CPC National Congress, China's national defense mobilization and reserve forces have been transformed, upgraded and developed at an accelerated pace. A modern militia system has been established, integrating peacetime service, emergency response and wartime combat capabilities. This year, we have arranged for a militia formation to participate in the parade, marking the first time the militia has taken part in a parade themed around commemorating the Chinese People's War of Resistance Against Japanese Aggression. At present, our militia formation has arrived in Beijing and is conducting training with full political enthusiasm, high morale and unwavering fighting resolve. Thank you.

Shou Xiaoli:

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

Translated and edited by Wang Yiming, Wang Xingguang, Liu Caiyi, Xu Kailin, Liao Jiaxin, Liu Jianing, Yang Xi, Zhang Tingting, Mi Xingang, Yang Chuanli, Wang Qian, Wang Yanfang, Liu Sitong, Zhang Rui, Huang Shan, Ma Yujia, Zhang Junmian, Li Huiru, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speaker:

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

Chairperson:

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

Date:

June 16, 2025

Zhou Jianshe:

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

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

Fu Linghui:

Ladies and gentlemen, good morning. I am very pleased to attend today's press conference. I will start by briefing you on the main economic indicators for this May and then take your questions.

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

In May, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, all regions and departments conscientiously implemented the decisions and deployments of the Party Central Committee and the State Council. Adhering to the general principle of seeking progress while maintaining stability, we fully and accurately implemented the new development philosophy on all fronts, accelerated the construction of the new development pattern, solidly promoted high-quality growth, and accelerated the implementation of more proactive and effective macro policies. The national economy withstood the pressure and operated steadily, with production demand growing steadily, employment remaining stable, new drivers of growth becoming stronger, and high-quality development moving toward excellence and innovation.

First, industrial production registered stable growth and equipment manufacturing and high-tech manufacturing grew quickly.

In May, the total value added of industrial enterprises above designated size grew by 5.8% year on year, or 0.61% month on month. In terms of sectors, the value added of mining went up by 5.7% year on year, manufacturing up by 6.2%, and the production and supply of electricity, thermal power, gas and water up by 2.2%. The value added of equipment manufacturing increased by 9.0% year on year, and that of high-tech manufacturing increased by 8.6%, which were 3.2 percentage points and 2.8 percentage points faster than that of the total value added by industrial enterprises above designated size. In terms of ownership, the value added of state holding enterprises increased by 3.8% year on year; that of share-holding enterprises increased by 6.3%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan increased by 3.9%; and that of private enterprises increased by 5.9%. In terms of products, the outputs of 3D printing devices, industrial robots and new energy vehicles (NEVs) grew by 40.0%, 35.5% and 31.7% year on year, respectively. In the first five months, the total value added of industrial enterprises above designated size went up by 6.3% year on year. In May, the manufacturing purchasing managers' index (PMI) stood at 49.5%, an increase of 0.5 percentage point from the previous month. The production and operation expectation index was 52.5%, up by 0.4 percentage point. In the first four months, the total profits made by industrial enterprises above designated size were 2.117 trillion yuan, up by 1.4% year on year.

Second, the service sector grew quickly, with the modern services sector gaining momentum.

In May, the index of services production (ISP) increased by 6.2% year on year, 0.2 percentage point faster than that of the previous month. In terms of sectors, that of information transmission, software and information technology services, and leasing and business services, wholesales and retails grew by 11.2%, 8.9% and 8.4% year on year, respectively, which were 5.0 percentage points, 2.7 percentage points and 2.2 percentage points faster than that of the ISP. In the first five months, the ISP increased by 5.9% year on year. In the first four months, the business revenue of service enterprises above designated size went up by 7.2% year on year. In May, the business activity index for the service sector was 50.2%, up 0.1 percentage point from the previous month; and the business activity expectation index was 56.5%, rising by 0.1 percentage point. Specifically, the business activity index for sectors like railway transportation, air transportation, postal service, telecommunication, broadcast, television and satellite transmission services, internet software and information technology services, stayed within the high expansion range of 55.0% and above.

Third, market sales recovered and sales of products under the trade-in program grew rapidly.

In May, the total retail sales of consumer goods was 4.1326 trillion yuan, up by 6.4% year on year, 1.3 percentage points faster than that of April; or up by 0.93% month on month. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 3.6057 trillion yuan, up by 6.5% year on year; and that in rural areas reached 526.9 billion yuan, up by 5.4%. Grouped by consumption patterns, the retail sales of goods were 3.6748 trillion yuan, up by 6.5%; and the income of catering was 457.8 billion yuan, up by 5.9%. Sales of basic living goods and some upgraded products showed good growth. Retail sales in units above designated size of grain, oil and food products, jewelry, and sports and entertainment goods grew by 14.6%, 21.8% and 28.3%, respectively. The effect of trade-in of consumer goods continued to show results, with the retail sales of household appliances and audiovisual equipment, communication equipment, cultural and office supplies, and furniture by enterprises above designated size growing by 53.0%, 33.0%, 30.5% and 25.6%, respectively. In the first five months, the total retail sales of consumer goods reached 20.3171 trillion yuan, up by 5.0% year on year. Online retail sales reached 6.0402 trillion yuan, up 8.5% year on year. Specifically, the online retail sales of physical goods were 4.9878 trillion yuan, up 6.3%, accounting for 24.5% of the total. In the first five months, the retail sales of services grew by 5.2% year on year.

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

In the first five months, fixed-asset investment (excluding rural households) reached 19,194.7 billion yuan, up 3.7% year on year. Excluding real estate development investment, fixed-asset investment grew 7.7%. By sector, investment in infrastructure grew 5.6% year on year, manufacturing investment rose 8.5%, and real estate development investment fell 10.7%. Nationwide, sales of newly built commercial buildings totaled 353.15 million square meters, down 2.9% year on year. Sales of newly built commercial buildings were 3,409.1 billion yuan, a decrease of 3.8%. By sector, primary industry investment grew 8.4% year on year, secondary industry investment rose 11.4%, and tertiary industry investment fell 0.4%. Private investment was flat from a year earlier. Excluding investment in real estate development, private investment increased 5.8%. Within high-tech industries, investment in information services rose 41.4% year on year; investment in aerospace vehicle and equipment manufacturing grew 24.2%; investment in computer and office device manufacturing increased 21.7%; and investment in professional technical services climbed 11.9%. In May, fixed-asset investment (excluding rural households) increased 0.05% month on month.

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

In May, total goods imports and exports reached 3,809.8 billion yuan, up 2.7% year on year. Of this total, exports hit 2,226.7 billion yuan, up 6.3%, while imports were 1,533.1 billion yuan, down 2.1%. In the first five months, total goods imports and exports reached 17,944.9 billion yuan, up 2.5% year on year. Of this total, exports reached 10,668.2 billion yuan, up 7.2%, while imports were 7,276.7 billion yuan, down 3.8%. In the first five months, general trade imports and exports grew 0.8%, accounting for 64.2% of the total trade value. Imports and exports by private enterprises grew by 7% year on year, accounting for 57.1% of the total trade value, up 2.4 percentage points from the same period last year. Exports of mechanical and electrical products grew 9.3% year on year, accounting for 60% of the total export value.

Sixth, employment remained generally stable and the surveyed urban unemployment rate declined.

In the first five months, the average surveyed urban unemployment rate was 5.2%. In May, the surveyed urban unemployment rate was 5%, down 0.1 percentage point from the previous month. The surveyed unemployment rate for people with local household registration was 5%, and the rate for those with non-local household registration was also 5%. The rate for people with non-local agricultural household registration was 4.9%. The surveyed urban unemployment rate in 31 major cities was 5%, down 0.1 percentage point from April. The average weekly working hours for employees at enterprises nationwide was 48.5 hours.

Seventh, consumer prices remained low, while the core consumer price index (CPI) rebounded modestly.

In May, the CPI fell 0.1% year on year and 0.2% month on month. By category, prices for food, tobacco and alcohol rose 0.1% year on year; clothing prices increased 1.5%; housing prices were up 0.1%; prices for household goods and services rose 0.1%; transportation and communication prices fell 4.3%; education, culture and entertainment prices increased 0.9%; health care prices rose 0.3%; and prices for other goods and services jumped 7.3%. In terms of food, tobacco and alcohol prices, fresh vegetable prices fell 8.3%, grain prices dropped 1.4%, pork prices rose 3.1%, and fresh fruit prices increased 5.5%. The core CPI, which excludes food and energy prices, went up 0.6% year on year, 0.1 percentage point higher than that of the previous month. In the first five months, the CPI dipped 0.1% year on year.

In May, the national producer price index (PPI) fell 3.3% year on year and 0.4% from the previous month. Purchasing prices for industrial producers dropped 3.6% year on year and 0.6% from the previous month. In the first five months, both the national PPI and the purchasing price index for industrial products fell 2.6% from a year earlier.

Overall, in May, as the effects of a combined policy package continued to materialize, efforts to stabilize the economy and promote growth showed clear results. The national economy maintained a generally stable trajectory with steady progress, fully demonstrating its resilience and vitality. It should also be noted that there are many external uncertainties and destabilizing factors, domestic demand's internal growth momentum still needs to be strengthened, and the foundation for sustained economic recovery and improvement needs to be further consolidated. Moving ahead, we must adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, and adhere to the general principle of pursuing progress while ensuring stability. We must fully and accurately implement the new development philosophy, accelerate the construction of a new development paradigm, coordinate domestic economic work with international economic and trade efforts, and unswervingly handle our own affairs well. We will give greater priority to the expansion of domestic demand and the strengthening of the domestic economic cycle, concentrate on stabilizing employment and the economy, and promote high-quality development to advance sustained and healthy economic development. Thank you.

Zhou Jianshe:

Thank you, Mr. Fu. The floor is now open for questions. Please identify your media outlet before asking your question.

National Business Daily:

We have observed that in May, the impact of international factors and new drivers of domestic consumption continued to grow and interact. Based on the data for May, what trends or characteristics stood out in China's economic performance? How would you evaluate it? Thank you.

Fu Linghui:

In May, the international environment changed rapidly. Facing a complex situation, under the strong leadership of the CPC Central Committee, all regions and departments accelerated the implementation of more proactive and effective macroeconomic policies. They focused on stabilizing employment, enterprises, the market and expectations; worked to expand domestic demand; promoted the integration of technological and industrial innovation; strengthened the domestic economic cycle; and effectively responded to external changes. As a result, economic performance remained generally stable, some indicators continued to improve, new drivers of growth grew stronger, and the momentum of high-quality development persisted, demonstrating the strong resilience and vitality of China's economy. Mainly, the following characteristics stood out:

First, growth remained stable. With the support of various policies, enterprises actively adjusted and responded, leading to rapid growth in industrial production. In May, the value added of industrial enterprises above designated size increased 5.8% year on year, maintaining rapid growth. China has a complete industrial system, and key sectors such as equipment manufacturing have seen accelerated growth while advancing industrial upgrading. This has provided strong support for stable industrial expansion. In May, the value added of equipment manufacturers above designated size increased 9%, accounting for 54.3% of the growth of industrial production. The expansion of domestic consumption and increased holiday travel also drove faster growth in the service industry. The service production index rose 6.2% year on year in May, 0.2 percentage point faster than the previous month. Stable growth in production and supply provided strong support for meeting market demand and boosting economic growth.

Second, economic performance remained stable. To determine whether the economy is operating stably, it is important to examine changes in production and demand indicators, as well as employment and price trends. As for production and demand indicators, in May, the growth rates of key measures — such as the value added of industrial enterprises above designated size, the service production index, and total retail sales of consumer goods — remained generally stable, indicating overall stability in production and demand. From the perspective of employment, the national surveyed urban unemployment rate in May was 5%, down 0.1 percentage point from the previous month. From a price perspective, due to international factors and lower prices for some food items, the CPI in May declined slightly year on year, but the rate of decline was unchanged from the previous month. The increase in core CPI, which excludes food and energy, was higher than the previous month, indicating that market supply and demand remained generally balanced. These figures show that overall economic performance in May was steady.

Third, continued improvement was seen. While overall economic performance remained stable, macroeconomic policies continued to take effect, domestic demand expanded, production and supply increased, and some indicators showed further improvement. Boosted by consumer goods trade-ins and online sales promotions, sales growth has accelerated. In May, total retail sales of consumer goods increased 6.4% year on year, 1.3 percentage points faster than the previous month. In the first five months, retail sales of services increased 5.2%, 0.1 percentage point faster than in the first four months. Accelerated consumption growth, especially increased spending on services, boosted related service industries. In May, the production index for wholesale and retail rose 1.6 percentage points, while the index for accommodation and catering increased 0.9 percentage point from the previous month.

Fourth, multiple growth drivers emerged. China is at a critical stage of industrial upgrading and development. As innovation plays an increasingly prominent role, new drivers of growth, such as high-end manufacturing, the digital economy and new energy industries, continue to strengthen. This has supported industrial transformation and stable economic performance. The statistical data for May also reflect these trends. The value added of high-tech manufacturers above designated size increased 8.6% year on year, while the value added of digital product manufacturers increased 9.1%, both significantly outpacing the overall growth rate of enterprises above designated size. The output of NEVs and solar cells jumped 31.7% and 27.8%, respectively, maintaining rapid growth.

Fifth, the economy showed great resilience. Against the backdrop of a complex and severe external environment, China's economy continued to show resilience and potential. This was evident not only in stable economic performance, but also in the continuous growth of foreign trade despite external pressures. In May, China's total imports and exports of goods increased 2.7% year on year, with exports up 6.3%. Despite sluggish global economic growth and a decline in trade with the United States, China successfully diversified its foreign trade. Imports and exports with ASEAN countries and Belt and Road partner nations continued to grow. Although exports of some labor-intensive products have slowed, exports of electromechanical products with higher technical content have expanded. These factors have boosted trade growth and reflect the advantages of China's large economic scale, complete industrial system and strong overall competitiveness.

Overall, in the face of changes in the external environment, the macro policies have worked together, and all sides have actively responded. In May, the national economy operated steadily overall, continued its trend of high-quality development, and showed comparatively strong resilience and vitality. In the next stage, there are many uncertain factors in the international environment, long-standing problems accumulated in the domestic economy are still emerging, and the foundation for economic recovery and improvement still needs to be consolidated. We must thoroughly implement the decisions and deployments of the Party Central Committee and the State Council, implement more proactive and promising macro policies, focus on strengthening the domestic economic flows and innovation-driven development, solidly promote high-quality development and foster the sustained and healthy development of the economy. Thank you.

South China Morning Post:

After the Geneva agreement between China and the U.S. was reached in May, did the related outcomes show up in the May economic data, such as in terms of exports, employment and investment? Thank you.

Fu Linghui:

Thank you for your question. In May, China and the U.S. made substantial progress and reached important consensus during trade talks in Geneva, which is beneficial to the improvement of the economic and trade relations between the two countries and also conducive to the development of the world economy. From the overall situation in May, the economy operated steadily. Under the effect of macro policies, production and demand maintained steady growth, employment continued to improve and remained stable overall, new momentum continued to grow, high-quality development was steadily promoted, and the economy showed a steady and progressive development trend. Thank you.

Reuters:

What is the government's economic forecast for the second quarter? And will further policy support measures need to be rolled out?

Fu Linghui:

Thank you for your questions. As for the forecast of economic growth, as a department involved in statistics, we generally do not make such predictions. Because we are data producers, there is a certain contradiction if we also engage in making predictions. In terms of the overall economic operation, the annual economy still has relatively good support. Since the beginning of this year, facing the complex environment, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, China's economy has withstood pressure and operated steadily, showing strong resilience and vitality. Judging from the current situation, the long-term positive trend of our economy remains fundamentally unchanged. It has distinct characteristics such as a stable foundation, numerous advantages, strong resilience and great potential, thereby providing a solid foundation, guarantee and support to ensure stable economic operation.

First, the development trend is good, and the stable operation has a foundation. Since the second quarter, although the external environment has been complex and volatile, macro policies have continued to exert their effects; the large number of business entities have adapted and pursued innovation; our economy has withstood the pressure and achieved stable growth; and high-quality development has been steadily advanced, laying a solid foundation for the stable operation of the economy in the next stage. In terms of the major indicators, from January to May, the service industry production index and total retail sales of consumer goods increased by 5.9% and 5% year on year, respectively, both accelerating compared to the first quarter. The added value of industries above designated size achieved a fast growth rate of 6.3%.

Second, policy efforts have been effective, ensuring stable and long-term development. Since the beginning of this year, China has implemented more proactive macro policies, increased counter-cyclical adjustments, accelerated the promotion of the "two major" (major national strategies and security capacity building in key areas) and "two new" (large-scale equipment upgrades and trade-in of consumer goods) policies, effectively enhanced consumption vitality, driven production growth, promoted transformation and upgrading, and fully demonstrated the important role of macro policies in stabilizing economic operations. Looking forward, China has sufficient reserves in its policy toolbox, with room for macro policy adjustments, which can be dynamically adjusted and actively responded to according to changes in the situation, continuing to guide the stable operation of the economy.

Third, innovation momentum is growing, supporting positive development. China continues to unwaveringly adhere to high-quality development, accelerate the cultivation and growth of new quality productive forces, and speed up the integration of technological innovation and industrial innovation. Meanwhile, the development trend of emerging industries is relatively good, traditional industries have been renewed and upgraded, the development of the digital economy and green economy is flourishing, and the continuously growing new momentum will provide a continuous new driving force for economic development. From January to May, the added value of digital product manufacturing industries above designated size increased by 9.9% year on year; and from January to April, the operating income of "little giant" service industry enterprises above designated size, which use specialized and sophisticated technologies to produce novel and unique products, increased by 18.4%, fully reflecting the strong vitality of the new momentum.

It is also worth noting that at the recent first meeting of the China-U.S. economic and trade consultation mechanism, the two sides reached a principled agreement on a framework of measures to implement the consensus from the June 5 call between the two heads of state and to consolidate the outcomes of the Geneva economic and trade talks. New progress has been made in addressing each side's economic and trade concerns, helping to promote the stable and sustainable development of China-U.S. economic and trade relations. This is also expected to bring greater stability and certainty to the global economy.

Of course, it should also be noted that the external environment remains complex and severe, with many unstable and uncertain factors. Domestically, there are difficulties in transitioning between traditional and new drivers of growth, and pressure to maintain stable economic performance persists. In the face of a complex environment, the key is to remain focused on our own businesses, implement more proactive and effective macroeconomic policies, continuously strengthen the internal momentum of economic development, and respond to external uncertainties with the certainty provided by high-quality development. Thank you.

Dazhong Daily:

Amid the continued rollout of economic stabilization policies in 2025, how have these combined macroeconomic measures affected May's economic data? How should their performance be evaluated? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, in the face of a complex and volatile development environment, various regions and departments have earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council. They have vigorously pursued more proactive and effective macroeconomic policies, helping the economy withstand pressure and maintain stable operations, with the effects continuing to emerge. Judging by key indicators in May, continued macroeconomic policy support has helped expand demand, boost production, improve expectations and unleash market vitality, providing important backing for stable economic performance.

First, it unleashed the potential of domestic demand. Consumer goods trade-in programs have spurred rapid growth in sales of related products. In May, among retail sales by enterprises above the designated size, sales of household appliances and audiovisual equipment, communication devices, cultural and office supplies, and furniture rose by 25.6% to 53% year on year, posting rapid growth. These categories contributed 1.9 percentage points to the increase in total retail sales of consumer goods. The impact of investment in equipment upgrades has also continued to grow. In the first five months of the year, investment in equipment and tools rose 17.3%, driving overall investment growth by 2.3 percentage points and accounting for 63.6% of total investment growth.

Second, it has driven production growth. Driven by large-scale equipment upgrades, production in related industries has grown rapidly. In May, the value-added output of industries above designated size such as lithium-ion battery manufacturing, ship and related equipment manufacturing, and boiler and prime mover equipment manufacturing rose 28.6%, 12.8% and 11.8% year on year, respectively. With the continued impact of consumer goods trade-in programs, demand for green, intelligent and high-quality products has continued to emerge, which has also driven production growth. In May, production of trade-in products increased, with NEVs up 31.7%, tablet computers up 30.9% and electric bicycles up 20.5%.

Third, it has improved business performance and expectations. With the ongoing rollout of macroeconomic policies, market sales have expanded, driving gains in corporate performance, profit recovery and improved expectations. In terms of corporate performance, from January to April, the profits of industrial enterprises above designated size increased 1.4% year on year, 0.6 percentage point faster than that from January to March. In April alone, profits increased 3%, 0.4 percentage point faster than in March. In terms of expectations and confidence, the manufacturing PMI rebounded by half a percentage point in May compared with the previous month, with the production index returning to expansion territory. The services business activity index stood at 50.2%, marking the third consecutive month it has stayed in the positive growth range.

Fourth, it has increased market vitality. Effective macroeconomic policies have boosted market activity, leading to faster flows of people and goods. In May, the year-on-year growth rate of passenger turnover accelerated compared with the previous month, and the number of domestic tourists during the May Day holiday rose 6.4% nationwide. The expansion and optimization of visa-free policies have led to an influx of foreign tourists, while inbound tourism has also shown strong vitality. Express delivery business volume is expected to maintain rapid growth for May.

Next, we need to further implement the decisions and arrangements of the CPC Central Committee and the State Council. We will adopt more proactive and effective macroeconomic policies, further expand domestic demand, ensure the smooth flow of economic circulation, and stimulate momentum and vitality. These efforts will help to continuously strengthen the foundation for sound economic development. Thank you.

Market News International:

In May, import growth measured in U.S. dollars continued to decline. What are the reasons for the contraction in imports so far this year? What is the outlook for import performance in the second half of the year? Thank you.

Fu Linghui:

Thank you for your questions. Since the this year, the decline in China's imports of goods has been the result of multiple factors. Since the beginning of this year, affected by the uncertainty of international trade policies, the growth momentum of the global economy has weakened, and we have seen a slowdown in global trade growth, which will inevitably affect the growth of China's imports. At the same time, some countries have increased trade restrictive measures, which have also had some adverse effects on China's imports. Moreover, after the weakening of global economic growth momentum this year, international commodity prices, and especially energy prices, have significantly declined. As a major importer of energy and raw materials, the decline in commodity prices will affect the growth of our imports. In the first five months, the average import prices of iron ore, crude oil, coal and soybeans in China decreased by 16.4%, 10.6%, 22.5% and 13.9%, respectively. These factors will have a certain impact on our imports.

While the import value of some commodities has declined, the import of major industrial products in China has continued to grow. In the first five months, the import value of machinery and electronic products increased by 6% year on year, with the import value of automatic data processing equipment and its parts, and integrated circuits increasing by 69% and 7.3%, respectively. In the next stage, as domestic demand continues to expand and China seizes the initiative by opening the market wider to the outside world in an orderly manner, China's vast market will undoubtedly offer greater opportunities and more choices to the world. Thank you.

China Financial and Economic News:

From the newly released data, we noticed that the CPI in May decreased by 0.1% year on year, while the core CPI increased by 0.6%. What is the reason for this? How would you assess this phenomenon? Thank you.

Fu Linghui:

Thank you for your questions. In May, the CPI decreased by 0.1% year on year and by 0.2% month on month. The month-on-month change in the CPI turned from an increase to a decrease, with a slight year-on-year decline, mainly due to international factors and the decline in food prices.

First, the decline in international energy prices has led to a decrease in the prices of domestic gasoline and other related consumer goods. The weakening of global economic growth momentum and the significant decline in energy commodity prices have increased the effect transmitted to domestic energy prices, pulling down energy prices in the CPI for May. From a month-on-month perspective, in May, energy prices in the CPI decreased by 1.7%, leading to a decrease of about 0.13 percentage point in CPI, among which gasoline prices decreased by 3.8%, 1.8 percentage points wider than the previous month. From a year-on-year perspective, in May, energy prices in the CPI decreased by 6.1%, 1.3 percentage points wider than the previous month, leading to a decrease of about 0.47 percentage point. Energy prices are the main factor affecting the year-on-year decrease in the CPI in May.

Second, some fresh food has come to market. With sufficient food supply, prices have fallen. In May, the market supply of vegetables, eggs and other foods increased, driving prices downward. From a month-on-month perspective, in May, food prices fell by 0.2%, leading to a decrease of about 0.04 percentage point in the monthly CPI. Specifically, fresh vegetable prices decreased by 5.9%, while prices for eggs, pork and poultry decreased by 0.3%-1%. From a year-on-year perspective, in May, food prices decreased by 0.4%, with the rate of decline widening by 0.2 percentage point from the previous month.

Although the CPI slightly declined year on year in May, the economy remained stable and the effects of policies to boost consumption have emerged. The positive changes in the CPI are accumulating.

First, the core CPI growth rate has expanded. Since food and energy prices are significantly affected by short-term factors, the core CPI, which excludes food and energy, better reflects the trend of price changes. In May, the core CPI increased by 0.6% year on year, 0.1 percentage point higher than the previous month, reflecting the gradually greater role of domestic demand in driving prices.

Second, prices of industrial consumer goods have increased at a quicker pace. The trade-in policy has been strengthened and expanded, driving up the prices of related industrial consumer goods. In May, the prices of industrial consumer goods excluding energy rose by 0.6% year on year, an increase of 0.2 percentage point from the previous month. The prices or cultural and entertainment durable consumer goods, such as cellphones and computers, rose by 1.8%.

Third, the rise in service prices has widened. Holiday demand and the expansion of residents' requirements for education, culture and living have driven up service prices. In May, service prices went up by 0.5% year on year, 0.2 percentage point higher than the previous month. Specifically, prices for flight tickets and tourism increased by 1.2% and 0.9%, respectively, and the prices of family services and education services increased by 1.7% and 1.2%, respectively.

The current price situation should be viewed from a comprehensive and nuanced perspective. On one hand, we're seeing the positive effects of policies aimed at boosting domestic demand and promoting a reasonable recovery in the overall price level. The core CPI growth has steadily expanded and positive changes in prices have continuously accumulated. However, we also need to acknowledge that overall prices are at a low level, affecting the corporate profitability and the employment and income increases of residents. In the next stage, we will further coordinate expanding domestic demand with deepening supply-side structural reforms, leverage the combined effects of macro policies, regulate market pricing, promote improve the supply and demand relationships, and foster a reasonable recovery in prices. Thank you.

Jiupai News:

In the current economic environment, job market stability is critically important. What are the key highlights and concerns in the May employment data? In response to employment challenges, which areas should be prioritized to promote job growth going forward? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, the international environment has become increasingly complex and severe, with more uncertainties emerging. This has had a certain impact on businesses' demand for labor. Amid the complex situation, all regions and departments have actively implemented policies and measures to promote high-quality and full employment, increased support for businesses to create jobs, and focused on key groups in the workforce. These efforts have helped maintain overall employment stability. Latest figures show that the national urban surveyed unemployment rate was 5% in May, down 0.1 percentage point from the previous month. The unemployment rate among those aged between 25 and 59, the majority of the labor market, remained stable, while the youth unemployment rate declined for a third consecutive month. The overall employment situation continued its stable trend.

The employment situation in May remained generally stable due mainly to the following factors: First, steady economic growth provided a foundation for stability. More proactive and effective macroeconomic policies have yielded results. Domestic demand has steadily expanded, effectively offsetting the negative impact of external factors. This has ensured the stable operation of the economy, helped stabilize labor demand, and created favorable conditions for employment stability. In May, the value-added output of industrial enterprises above designated size rose 5.8% and the service industry production index increased 6.2%, both maintaining overall stability compared with April. Second, industrial development has been actively promoted. Driven by supportive policies, several industries with large employment capacity performed well, which also contributed to employment stability. Policies encouraging the trade-in of consumer goods and the boost from the holiday economy led to expanded market sales. Industries such as wholesale and retail, accommodation, and catering remained active, supporting employment stability. In May, the production indices for the wholesale and retail industry increased 8.4%, while the accommodation and catering industry rose 6.2%, marking a significant acceleration in growth compared to the previous month. Third, policies aimed at stabilizing employment have taken effect. Since the beginning of this year, relevant departments have intensified efforts to implement employment stabilization policies. These measures include increased support for enterprises to expand job opportunities, greater subsidies for individuals, and enhanced assistance for people facing employment difficulties. By focusing on the development of new quality productive forces, creating consumption hotspots and advancing key engineering projects, we have actively sought new sources of job growth, expanded vocational skills training and strengthened public employment services. All these efforts have contributed to overall employment stability.

However, it is important to note that employment stability still faces certain pressures, mainly due to the complex changes in the external environment, which have affected the labor market. Domestically, some industries are having difficulty recruiting workers, while certain groups are under significant employment pressure. These trends reflect ongoing mismatches between labor supply and demand. Next, in response to employment pressures, we should follow the decisions and deployments of the CPC Central Committee and the State Council. We need to further stabilize employment and the economy, strengthen vocational skills training, improve the match between labor supply and demand, promote full employment, enhance employment quality, continuously improve people's livelihoods, support stable and healthy economic development, and maintain overall social stability. Thank you.

CCTV:

Based on economic performance in the first five months, what trends have emerged in the Chinese economy amid a complex and challenging external environment? What are the forecasts for the economic trend in the first half of the year? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, the external environment has grown increasingly complex, with rising unilateralism and protectionism severely impacting the international economic and trade order. However, China's economy remains fundamentally stable, backed by numerous advantages, strong resilience and great potential. The momentum for stable growth, the trend toward high-quality development, and the shift toward new and positive development have all remained unchanged. These are the sources of confidence and assurance that enable China's economy to overcome various risks and challenges as it moves forward.

First, the momentum for stable economic growth remains unchanged. In the first quarter of this year, China's economy got off to a strong start. Since April, however, increased uncertainty in trade policies and other factors have weakened the momentum of global economic growth. Major economic organizations have lowered their forecasts for growth in 2025. According to the latest report from the World Bank, the global economy is projected to grow 2.3% in 2025, down 0.4 percentage point from the forecast at the beginning of the year. Under these circumstances, maintaining growth stability in China's economy since the second quarter has been particularly challenging. From a production perspective, the value-added output of industrial enterprises above designated size rose 6.3% year on year from January to May, while the service industry production index grew 5.9%. Both indicators remained generally stable compared with the first quarter. From a demand perspective, total retail sales of consumer goods rose 5% from January to May, showing faster growth than in the first quarter. Fixed-asset investment increased 3.7%, remaining basically stable.

Second, innovation-driven development remains unchanged. In recent years, China has been gradually shifting from old to new drivers of growth, with innovation playing an increasingly important role in development. This year, all sectors have continued to increase investment in innovation, advance scientific and technological innovation, and drive industrial innovation, with the economy maintaining its shift toward new development trends. In the first five months, the value added of high-tech manufacturing enterprises above designated size increased 9.5% year on year. Breakthroughs have been made in cutting-edge technology fields such as large AI models and humanoid robots, further boosting industrial upgrading. From January to May, the output of industrial robots rose 32% year on year, while the value added of in-vehicle smart device manufacturing increased 26.8%.

Third, the shift toward green and low-carbon development remains unchanged. China is unswervingly promoting the transition to a green and low-carbon economy, which not only improves the ecological environment but also supports the steady growth of green industries, particularly in the new energy sector, fostering new drivers of economic growth. This year, the development of China's green industry has continued to improve. In the first five months, the output of NEVs and solar cells increased 40.8% and 18.3% year on year, respectively. Clean energy generation has grown rapidly, with wind, solar power generation by industrial enterprises above designated size increasing 11.1% and 18.3%, respectively, from January to May.

Fourth, the pursuit of high-level opening up remains unchanged. Against the backdrop of rising protectionism, unilateralism and challenges to global economic and trade exchanges, China continues expanding its high-level opening up. We're actively engaging in economic and trade cooperation with partners worldwide on the basis of mutual benefit and win-win results. The positive results are becoming increasingly apparent. From January to May, China's total volume of trade in goods increased 2.5% year on year, while the value of trade in services from January to April rose 8.2% compared with the same period last year. To facilitate cross-border travel, China has proactively expanded its visa-free policies, promoting economic ties and people-to-people exchanges. During this year's May Day holiday, the number of inbound visitors entering China under the visa-free policy increased 72.7% year on year.

Fifth, the ongoing improvement of people's livelihoods remains unchanged. Ensuring and improving people's well-being during development is a key goal of Chinese modernization. Since the beginning of this year, all localities and government departments have focused on stabilizing employment and the economy, working to boost personal incomes and strengthening efforts to better meet people's basic needs. From January to May, China's average surveyed urban unemployment rate was 5.2%, indicating a generally stable employment situation. From January to April, spending on social security and employment in the national general public budget rose 8.5%, while education spending increased 7.4%. Both rates outpaced the overall growth of total general public budget spending. The General Office of the CPC Central Committee and the General Office of the State Council recently issued new guidelines to further safeguard and improve public well-being and address the most pressing concerns of the public. As related policies are gradually implemented, they will further enhance people's quality of life.

These conditions show that China's economic performance had a strong start in the first quarter. Despite increased external shocks in the second quarter, China's strong economic foundation, effective policies and robust development momentum continue to provide firm support for stable economic performance. Therefore, based on the first half of the year, China's economy is expected to maintain overall stability and achieve steady progress. Thank you.

CNR:

We have noticed that the State Council recently issued a notice on conducting the fourth national agricultural census. What are the main objectives and key areas of this census? Moreover, what are the differences between this census and previous ones? Thank you.

Fu Linghui:

Thank you for your questions and interest in the agricultural census. The State Council recently announced plans to conduct the fourth national agricultural census in 2026. It will be a major survey on national conditions and strength as China forge ahead on the new journey of advancing the rejuvenation of the Chinese nation on all fronts through Chinese modernization.

According to the Statistics Law of the People's Republic of China and the Regulation on National General Surveys of Agriculture, the agricultural census is conducted once every 10 years, with years ending in six designated as census years. China will conduct the fourth national agricultural census in 2026. The main goal is to develop a clear understanding of the state of the country's agriculture, rural areas and rural residents in the new era, and to objectively capture new developments in agricultural growth, new trends in rural construction, changes in rural life and progress in rural reform. This census is of great significance for formulating sound policies for agriculture and rural affairs, advancing all-around rural vitalization, accelerating the modernization of agriculture and rural areas, and building China into an agricultural powerhouse.

The fourth agricultural census will focus on five main areas. First, it will examine agricultural production conditions, including agricultural personnel, land use and transfers, and agricultural social services. Second, it will cover grain and food production, including grain and cash crops, livestock products such as meat, eggs and milk, as well as forestry products and aquatic products. Third, the census will assess new quality productive forces in agricultural productivity, including new types of agricultural business entities, modern protected agriculture and smart agriculture. Fourth, it will look at basic rural development, including rural industrial development, construction and governance. Fifth, it will investigate rural residents' living conditions, including household situations and quality of life.

Compared with the previous three national agricultural censuses, there are several major changes in the fourth . First, keeping up with the times. In terms of the content, this census, on the basis of understanding the conditions of agriculture, rural areas and rural residents, investigations will be made in new areas such as diversified food supply, agricultural new quality productive forces, and creating a beautiful and harmonious countryside. Second, being scientific and efficient. In terms of methodology, this census will adopt a combination of comprehensive census and sampling survey, as well as a mix of long and short forms, which will effectively improve the quality and efficiency of the census, and reduce the burden on primary-level workers. Third, being empowered by digital technologies. From the perspective of census-taking means, this census will strengthen the application of modern survey methods, and make full use of modern information technologies such as satellite remote sensing, drones and artificial intelligence to improve the level of digital and intelligent data collection. Fourth, joint governance and shared benefits. From the perspective of data utilization, this census will make extensive use of administrative records, and strengthen the development and utilization of census data, with the aim of creating a unified "map" of agricultural census data, and promote the extensive application and sharing of census results.

Currently, the fourth national agricultural census is in the preparation stage, which mainly involves the establishment of census institutions, the development of census plans, and the implementation of pilot surveys. Here, we would like to invite friends from the media to pay attention to and support the fourth national agricultural census. Your active publicity work will help mobilize social participation and ensure the census is carried out smoothly. Through our collective efforts, we can gain a more comprehensive understanding of our country's agricultural foundation and better promote the construction of an agricultural powerhouse. Thank you.

Shandian News:

What are the new highlights and changes in the domestic consumer market in May? How effective have the previous policies aimed at boosting consumption been? And what are your expectations for the driving force and trend of consumption growth? Thank you.

Fu Linghui:

Thank you for your questions. Consumption is an important engine of economic growth, and vigorously boosting consumption is key to responding to external changes, smoothing domestic circulation, and improving residents' quality of life. Since the beginning of this year, various regions and departments have resolutely implemented the decisions and deployments of the CPC Central Committee and the State Council, actively promoted special actions to boost consumption, and intensified and expanded the implementation of the consumer goods trade-in policy. As a result, market sales have grown rapidly, service consumption potential has been unleashed, and these efforts have effectively supported the stable economic performance.

Under the combined effects of the May Day and Dragon Boat Festival holidays, the "6.18" E-commerce Shopping Festival, and the consumer goods trade-in policy, the total retail sales of consumer goods in May increased by 6.4% year on year, accelerating by 1.3 percentage points from the previous month. From January to May, the retail sales of services increased by 5.2%, accelerating by 0.1 percentage point from January to April. The acceleration of consumption growth has been mainly supported by the following factors:

First, the consumer goods trade-in policy has shown a significant driving effect. The effectiveness of the trade-in policy continues to be evident, unleashing residents' consumption potential, and promoting the rapid growth of sales of related goods. In May, the retail sales of household appliances and audiovisual equipment, communication equipment, cultural and office supplies, and furniture by enterprises above designated size increased by 53%, 33%, 30.5% and 25.6% year on year, respectively, collectively driving the total retail sales of consumer goods to rise by 1.9 percentage points, an increase of 0.5 percentage point from the previous month.

Second, the "6·18" E-commerce Shopping Festival provided significant momentum. This year's "6·18" E-commerce Shopping Festival, launched on May 13 by e-commerce platforms, combined with the goods trade-in policy, has driven the acceleration of online retail sales. From January to May, the online retail sales of physical goods increased by 6.3% year on year, accelerating by 0.5 percentage point compared with January to April, accounting for 24.5% of the total retail sales of consumer goods.

Third, holiday consumption showed good performance. During the May Day and Dragon Boat Festival holidays, there was a significant increase in travel by residents, with domestic tourism trips increasing by 6.4% year on year. Regions actively explored new models of cultural and tourism consumption, with diversified supply injecting new momentum into expanding consumption, leading to rapid growth in spending on cultural and tourism leisure, transportation services and dining-out. In May, catering revenue increased by 5.9% year on year, up 0.7 percentage point from the previous month. From January to May, the retail sales of tourism consulting and rental services, transportation services, and cultural and sports services all maintained double-digit growth.

Fourth, new growth drivers for consumption are continuously being unleashed. Market supply continues to diversify, the consumption environment is gradually improving, and residents' demand for high-quality living is increasing, driving the rapid growth of related goods and services sales. In May, the retail sales of sports and entertainment goods and gold and silver jewelry by enterprises above designated size increased by 28.3% and 21.8% year on year, respectively, maintaining double-digit growth. The rapid development of network technology has driven the expansion of residents' demands for communication services. From January to May, the retail sales of communication information services increased by more than 10%, accelerating by 0.5 percentage point compared with the January-April period.

It should also be noted that, since the beginning of this year, China has gradually expanded the range of countries that qualify for visa-free entry, promoting personnel exchanges and invigorating the consumer market. During the May Day holiday, the number of inbound foreign nationals entering under the visa-free policy increased by more than 70% year on year. Data from travel platforms shows that the volume of inbound tourism orders has multiplied, and the number and amount of payment transactions processed by China UnionPay and NetsUnion for overseas visitors in China have increased by 2.4 times and 1.3 times, respectively.

Overall, the economy has remained stable, the effects of consumer goods trade-in policies have continued to emerge, and the vitality of the consumer market has gradually increased. Looking ahead, new forms and models of consumer spending — such as livestreaming sales and instant retail — are becoming increasingly mature. The silver economy, first-release economy and low-altitude economy are developing rapidly, with new growth drivers in consumer spending continuing to emerge. However, it should also be noted that consumer capacity and confidence still need to be improved, and the internal momentum driving consumption must be further strengthened. Moving forward, we will further implement the Special Action Plan to Boost Consumption, with a focus on enhancing consumer capacity and confidence. We will continue to improve the consumption environment, significantly increase the supply of high-quality products, actively promote the upgrading and expansion of service consumption, and support the steady development of the consumer market. Thank you.

21st Century Business Herald:

How did industrial enterprises above designated size perform in May? What were the main characteristics? How do you evaluate the future development trend of China's industrial production? Thank you.

Fu Linghui:

Thank you for your questions. Driven by the effective implementation of macroeconomic policies and industrial upgrading, the valueadded output of industrial enterprises above designated size increased 5.8% year on year in May. Industrial production maintained steady and rapid growth, demonstrating strong resilience and growth potential. The steady advancement of high-end, intelligent and green industrial development has fueled high-quality economic growth.

First, the industrial sector's move toward high-end development has progressed steadily. In recent years, as companies have strengthened their technological capabilities and financial resources, there has been a clear shift in industrial production toward medium- and high-end, technology- and capital-intensive sectors. In May, the value-added output of equipment manufacturing and high-tech manufacturing enterprises above designated size increased 9% and 8.6% year on year, respectively, both continuing to grow faster than the overall industrial sector above designated size. By industry, key equipment manufacturing industries grew rapidly in May, with the value added by automobile manufacturing up 11.6% and by computers, communication and other electronic equipment manufacturing up 10.2%. By product, high-tech product output grew rapidly in May, with 3D printing equipment production up 40% and integrated circuits up 11.5%.

Second, the development of industrial intelligence has accelerated. The integration and penetration of the digital economy have continued to increase, further strengthening its role in driving industrial production. In May, the value added by the digital product manufacturing industry grew 9.1%, significantly outpacing the growth rate of all industrial enterprises above designated size. The integration of technological innovation and industrial innovation is accelerating, and demand for intelligent products is expanding significantly, driving rapid growth in production. In May, the value added by intelligent unmanned aerial vehicle manufacturing rose 85.9%, while in-vehicle smart device manufacturing increased 29.5%. The output of robot reducers doubled, while the output of industrial robots increased 35.5%.

Third, green industrial production has made significant progress. With the green transformation of the economy and society, demand for new energy products and green materials has continued to grow. Coupled with improved innovation capabilities among enterprises, the supply of green products is also expanding. In May, the output of NEVs and automotive lithium-ion power batteries rose 31.7% and 52.5%, respectively, while the supply of new green materials also increased. The output of high-performance chemical fibers, bio-based chemical fibers, and carbon fibers and their composite materials climbed 92.2%, 21.5% and 17.9%, respectively.

Fourth, business revenue expectations have improved. Since the beginning of this year, the economy has remained generally stable, creating favorable conditions for enterprises to improve their business performance. From January to April, the profits of industrial enterprises above designated size increased 1.4% year on year, while the profits of manufacturing enterprises increased 8.6%. As the effects of macroeconomic policies have become apparent, business expectations for production and operations have improved. In May, the manufacturing PMI rose 0.5 percentage point from the previous month. Among them, the production index was 50.7%, up 0.9 percentage point from the previous month, while the production and business expectations index reached 52.5%, up 0.4 percentage point.

Overall, industrial production grew steadily in May, with new growth drivers continuing to emerge and demonstrating strong momentum. However, it should also be noted that the external environment is complex and severe, and industrial product prices are at a low level. The industry still faces pressure to maintain steady growth. Looking ahead, we will implement various policies to support industrial development, actively expand domestic demand, vigorously cultivate new quality productive forces, and optimize and adjust the industrial structure. We will also advance the transformation and upgrading of traditional industries to promote the sustainable and healthy development of industry. Thank you.

Dingduan News:

In the first five months, the total value of goods imports and exports increased 2.5% year on year, with exports in May up 6.3%. Given weak global demand and tariff hikes by some countries, what are the sources of resilience in China's exports? How do you view the outlook for foreign trade in the near future?

Fu Linghui:

Thank you for your questions. China's foreign trade continued to withstand pressure in May and achieved steady growth. China's total goods imports and exports increased 2.7%, with exports climbing 6.3%, maintaining steady and rapid growth. According to data from market institutions, the global manufacturing PMI new export orders index remained below the threshold indicating expansion in May, marking the second consecutive month in contraction territory. Trade protectionism and rising uncertainty are having an increasingly negative impact on global trade growth. Against this background, the growth of China's goods trade reflects the strong international competitiveness and resilience of the country's foreign trade sector.

Looking at our trading partners, trade with the U.S. fell, while trade with ASEAN, the EU and Belt and Road partner countries grew, reflecting China's progress in diversifying its foreign trade. In the first five months of this year, trade with ASEAN, the EU, and Belt and Road partner countries rose 9.1%, 2.9% and 4.2%, respectively. From the perspective of business entities, China's private enterprises have demonstrated strong market adaptability and flexibility in responding to external fluctuations. They have greatly expanded markets and advanced development, providing solid support for foreign trade growth. From January to May, imports and exports by private enterprises rose 7% year on year, with exports up 8% and imports up 4.9%, outpacing the national average.

In terms of exports, China's ongoing industrial upgrades have boosted the technological sophistication of its products and strengthened its international competitiveness. Exports of electromechanical products remain a key driver of growth, while high-end goods such as integrated circuits have also posted rapid increases. From January to May, exports of electromechanical products grew 9.3% year on year, including an 18.9% increase in integrated circuit exports. The competitive edge of high-tech products remains strong, with exports in this category rising 7.4% in the same period.

Despite a complex and challenging international environment, with rising unilateralism and protectionism severely disrupting global trade, China's foreign trade has continued to grow steadily. This resilience is attributed to China's ongoing commitment to opening up, efforts to diversify foreign trade, advances in high-end, intelligent and green industrial development, continued product upgrades and greater market competitiveness. Government support measures, including improved trade facilitation, have also helped create favorable conditions for foreign trade. Looking ahead, external uncertainties and instabilities may put pressure on growth, but China still holds significant advantages in foreign trade. Continued high-level opening up, based on mutual benefit and win-win cooperation, will remain a key driver of steady growth in the sector. Thank you.

Zhou Jianshe:

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

Jinan Times APP:

Based on the data, how would you assess the real estate sector in May? What's your outlook for the real estate market moving forward? Thank you.

Fu Linghui:

In the fourth quarter of last year, local governments and relevant departments carried out central directives to stabilize the real estate market, introducing a range of city-specific policies that produced positive results. Since the beginning of this year, as stabilization measures have gained momentum, the market has continued to recover. In May, the real estate sector's overall performance remained stable. Year-on-year declines in home prices across 70 large and medium-sized cities continued to narrow, and inventories of commercial housing continued to fall.

In terms of transactions, real estate sales remained steady, supported by stabilizing policies. From January to May, the floor area and total sales of newly built commercial housing fell 2.9% and 3.8% year on year, respectively, remaining largely unchanged from the January-April period. The market was relatively active in some first- and second-tier cities, with both floor area and sales value increasing. On the pricing front, the year-on-year decline in prices for newly built commercial residential units continued to narrow. In May, among the 70 large and medium-sized cities, most saw the year-on-year decline in the sales prices of commercial residential buildings narrow. Specifically, the year-on-year decline in sales prices for new commercial housing narrowed by 0.4 percentage point in both first-tier and second-tier cities and 0.5 percentage point in third-tier cities. For secondhand homes, the year-on-year decrease narrowed by 0.5, 0.4 and 0.5 percentage point, respectively. Regarding commercial housing inventory, at the end of May, the total floor area of commercial housing for sale decreased by 7.15 million square meters compared with the end of April, marking the third consecutive month of decline.

Overall, policies to halt the market downturn and restore stability have continued to deliver results, and the real estate sector remained largely stable in May. However, it should also be noted that the real estate market is still adjusting, market confidence is still recovering, supply and demand dynamics need further improvement, and continued efforts are required to reinforce stabilization. Looking ahead, it is necessary to fully implement the decisions of the CPC Central Committee and the State Council and proactively respond to significant shifts in supply-demand dynamics. We must continue to promote urban renewal and the renovation of dilapidated housing, increase the supply of high-quality homes, better meet both basic and improved housing needs, and actively foster a new development model for the real estate sector. These actions will support the sector's stable and healthy growth. Thank you.

Zhou Jianshe:

Thank you, Mr. Fu. That concludes today's press conference. Goodbye, everyone.

Translated and edited by Chen Xinyan, Mi Xingang, Liu Sitong, Liu Ziying, Zhang Tingting, Xu Kailin, Yan Xiaoqing, Yan Bin, Wang Xingguang, Cui Can, Wang Yiming, Li Huiru, Zhang Junmian, Zhou Jing, Zhang Rui, Fan Junmei, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speaker:

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

Chairperson:

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

Date:

May 19, 2025

Zhou Jianshe:

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

First, I will give the floor to Mr. Fu for his introduction.

Fu Linghui:

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

In April, the national economy withstood pressure and maintained stable growth.

In April, in the face of a complicated situation marked by increasing external shocks and multiple domestic difficulties and challenges, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, all regions and departments strictly implemented the decisions and arrangements made by the CPC Central Committee and the State Council, adhered to the general principle of pursuing progress while ensuring stability, fully and faithfully applied the new development philosophy on all fronts, accelerated efforts to create a new pattern of development, took solid steps to promote high-quality development, stepped up the implementation of more proactive and effective macro policies, and responded to the external shocks effectively. As a result, production and demand grew steadily, employment was generally stable, and new growth drivers accumulated and grew. The national economy maintained stable growth despite pressure, sustaining the new and positive development momentum.

Fu Linghui:

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

In April, the total value added of industrial enterprises above designated size grew by 6.1% year on year, or 0.22% month on month. In terms of sectors, the value added of mining went up by 5.7% year on year, manufacturing up by 6.6%, and the production and supply of electricity, thermal power, gas and water up by 2.1%. The value added of equipment manufacturing increased by 9.8% year on year, and that of high-tech manufacturing increased by 10.0%, which were 3.7 percentage points and 3.9 percentage points faster than that of industrial enterprises above designated size, respectively. In terms of ownership, the value added of state holding enterprises was up by 2.9% year on year; that of share-holding enterprises was up by 6.6%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 3.9%; and that of private enterprises was up by 6.7%. In terms of products, the outputs of 3D printing devices, industrial robots and new energy vehicles (NEVs) grew by 60.7%, 51.5% and 38.9% year on year, respectively. In the first four months, the total value added of industrial enterprises above designated size went up by 6.4% year on year. In April, the Manufacturing Purchasing Managers' Index was 49.0%; and the Production and Operation Expectation Index was 52.1%. In the first three months, the total profits made by industrial enterprises above designated size were 1,509.4 billion yuan, up by 0.8% year on year.

Second, the service sector grew steadily and modern services developed well.

In April, the Index of Services Production grew by 6.0% year on year. In terms of sectors, that of information transmission, software and information technology services, leasing and business services, wholesales and retails, and finance grew by 10.4%, 8.9%, 6.8% and 6.1% year on year, respectively, which were 4.4 percentage points, 2.9 percentage points, 0.8 percentage point and 0.1 percentage point faster than that of the Index of Services Production. In the first four months, the Index of Services Production increased by 5.9% year on year. In the first three months, the business revenue of service enterprises above designated size went up by 7.0% year on year. In April, the Business Activity Index for Services was 50.1%, and the Business Activity Expectation Index for Services was 56.4%. Specifically, the Business Activity Index for industries like air transportation, telecommunication, broadcast, television and satellite transmission services, internet software and information technology services, and insurance stayed within the high expansion range of 55.0% and above.

Third, market sales maintained steady growth and trade-in goods grew quickly.

In April, the total retail sales of consumer goods reached 3,717.4 billion yuan, up by 5.1% year on year, or up by 0.24% month on month. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 3,237.6 billion yuan, up by 5.2% year on year; and that in rural areas reached 479.8 billion yuan, up by 4.7%. Grouped by consumption patterns, the retail sales of goods were 3,300.7 billion yuan, up by 5.1%; and the income of catering was 416.7 billion yuan, up by 5.2%. Sales of basic living goods and certain upgraded goods showed sound growth. The retail sales of grain, oil and food and of sports and recreational articles by enterprises above designated size went up by 14.0% and 23.3%, respectively. The effect of trade-in of consumer goods continued to manifest, with the retail sales of household appliances and audiovisual equipment, cultural and office supplies, furniture, and communication equipment by enterprises above designated size growing by 38.8%, 33.5%, 26.9% and 19.9%, respectively. In the first four months, the total retail sales of consumer goods reached 16,184.5 billion yuan, up by 4.7% year on year. Online retail sales reached 4,741.9 billion yuan, up by 7.7% year on year. Specifically, the online retail sales of physical goods were 3,926.5 billion yuan, up by 5.8%, accounting for 24.3% of the total retail sales of consumer goods. In the first four months, the retail sales of services grew by 5.1% year on year.

Fourth, investment in fixed assets continued to expand and investment in manufacturing grew quickly.

In the first four months, investment in fixed assets (excluding rural households) reached 14,702.4 billion yuan, up by 4.0% year on year; and investment in fixed assets was up by 8.0% with the investment in real estate development deducted. Specifically, investment in infrastructure grew by 5.8% year on year, that in manufacturing grew by 8.8%, and that in real estate development declined by 10.3%. The floor space of newly-built commercial buildings sold was 282.62 million square meters, down by 2.8% year on year; and the total sales of newly-built commercial buildings were 2,703.5 billion yuan, down by 3.2%. By industry, investment in the primary industry increased by 13.2% year on year, that in the secondary industry up by 11.7%, and that in the tertiary industry down by 0.2%. Private investment increased by 0.2% year on year, or increased by 5.8% with the investment in real estate development deducted. In terms of high-tech industries, investment in information services, computer and office device manufacturing, aerospace vehicle and equipment manufacturing, and professional technical services grew by 40.6%, 28.9%, 23.9% and 17.6%, respectively. In April, investment in fixed assets (excluding rural households) increased by 0.10% month on month.

Fifth, imports and exports of goods kept growing and the trade structure continued to be optimized.

In April, the total value of imports and exports of goods was 3.84 trillion yuan, a year-on-year increase of 5.6%. Specifically, the total value of exports was 2.26 trillion yuan, up by 9.3%. The total value of imports was 1.57 trillion yuan, up by 0.8%. In the first four months, the total value of imports and exports of goods was 14.13 trillion yuan, a year-on-year increase of 2.4%. Specifically, the total value of exports was 8.39 trillion yuan, up by 7.5%. The total value of imports was 5.74 trillion yuan, down by 4.2%. In the first four months, the imports and exports of general trade went up by 0.6%, accounting for 64% of the total value of imports and exports. Imports and exports by private enterprises went up by 6.8%, accounting for 56.9% of the total value of imports and exports, which is 2.3 percentage points higher than that of the same period last year. The exports of mechanical and electrical products grew by 9.5%, accounting for 60.1% of the total value of exports.

Sixth, employment was generally stable and the surveyed urban unemployment rate declined.

From January to April, the average surveyed unemployment rate in urban areas remained flat year on year at 5.2%. In April, the national surveyed urban unemployment rate was 5.1%, 0.1 percentage point lower than that of the previous month. The surveyed unemployment rate of population with local household registration was 5.2% and that of population with non-local household registration was 4.8%, of which the rate of population with non-local agricultural household registration was 4.7%. The surveyed urban unemployment rate across 31 major cities was 5.1%, 0.1 percentage point lower than that of the previous month. Employees of enterprises nationwide worked an average of 48.3 hours per week.

Seventh, the consumer price index (CPI) fell slightly year on year, and the core CPI growth rate was stable.

In April, the CPI decreased by 0.1% year on year, and increased by 0.1% compared to the previous month. By category, prices for food, tobacco and alcohol went up by 0.3%; clothing up by 1.3%; housing up by 0.1%; household goods and services for daily use up by 0.2%; transportation and communication prices down by 3.9%; education, culture and recreation up by 0.7%; medical services and health care up by 0.2%; and other articles and services up by 6.6%. In terms of food, tobacco and alcohol, prices for fresh vegetables fell by 5%, grain fell by 1.4%, pork up by 5%, and fresh fruits up by 5.2%. The core CPI, excluding the prices of food and energy, grew by 0.5% year on year. In the first four months, the CPI went down by 0.1% year on year.

In April, the national producer price index (PPI) for industrial products went down by 2.7% year on year and 0.4% month on month. The purchasing price index for industrial producers went down by 2.7% year on year and 0.6% month on month. In the first four months, the national producer price and purchasing price indexes for industrial products both dropped by 2.4% compared with the same period last year.

Overall, in April, despite increased external pressures, the coordinated efforts of macro policies ensured steady and relatively rapid growth in major indicators, sustaining the upward and improving trend of the national economy. It should also be noted that external instabilities and uncertainties still remain significant, and the foundation for the continuous improvement of the national economy needs to be further consolidated. In the next stage, we must adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, and adhere to the general principle of seeking progress while maintaining stability. We must fully and accurately implement the new development philosophy, accelerate the construction of a new development paradigm, coordinate domestic economic work and international economic and trade efforts, unswervingly handle our own affairs well, unswervingly expand high-level opening up, focus on stabilizing employment, enterprises, markets and expectations, solidly promote high-quality development, and promote the continuous recovery and improvement of the economy. Thank you.

Zhou Jianshe:

The floor is now open for questions. Please identify your media outlet before raising your questions.

Jinan Times APP:

Has the macro policy package adopted in the first quarter begun to stimulate economic growth in April? How would you assess the overall economic performance in April? Thank you.

Fu Linghui:

Thank you for your questions. There has been considerable interest in April's economic performance. Overall, in April, the international environment became more complex and severe, external shocks increased, and the difficulty of sustaining a stable economic operation increased. Facing the rapidly changing and complex situation, under the strong leadership of the CPC Central Committee, all regions and departments conscientiously implemented the decisions and deployments of the CPC Central Committee and the State Council, accelerated the implementation of more proactive and effective macro policies, strengthened the domestic cycle, and effectively responded to external shocks. As a result, the economy withstood pressure and maintained stable growth, continuing the trend of improvement. When I was reporting the main indicators of economic performance for April, everyone could understand this situation, which fully demonstrates the strong resilience and resistance of our economy. Based on key economic indicators, the following features can be observed:

First, production supply grew relatively quickly. In terms of industry, the combined effect of macro policies continued to release, and industry maintained relatively fast growth. In April, the value-added of industrial enterprises above the designated size increased by 6.1% year on year, which is relatively fast in terms of monthly growth rate since last year. Driven by intensified and expanded "two new" policies and industrial upgrading, the equipment manufacturing industry continued to grow rapidly, with its value-added increasing by 9.8% year on year in April. Its contribution rate to the growth of industries above designated size reached 55.9%. In terms of the service industry, under the influence of policies to expand domestic demand, it maintained a stable growth. In April, the service industry production index increased by 6% year on year, marking the second-highest monthly growth rate so far this year. The ongoing digital transformation, coupled with increased travel and transportation activities, has contributed to steady growth in information services, business services and related sectors. In April, the production indexes of information transmission software and IT services and leasing and business services increased by 10.4% and 8.9%, respectively, both significantly faster than the growth of the entire service industry.

Second, domestic demand expanded steadily. In terms of consumption, the policy to promote trade-in of consumer goods continued to show results, and market sales maintained steady growth. In April, total retail sales of consumer goods rose by 5.1% year on year. Sales of goods under the trade-in policy grew significantly, playing a notable role in supporting overall retail growth. Fueled by holiday and spring consumption, service-related retail sales maintained steady expansion. In the first four months, the retail sales of services grew by 5.1% year on year. In terms of investment, the effects of the policies related to major national strategies and the enhancement of security capacity in key areas ("two major initiatives") and large-scale equipment renewals and trade-in of consumer goods ("two new initiatives") have continued to emerge, with the scale of investment steadily expanding. From January to April, fixed-asset investment rose by 4% year on year. Driven by large-scale equipment renewals, investment in the purchase of equipment grew by 18.2% year on year from January to April, contributing 64.5% to the overall growth in investment.

Third, foreign trade demonstrated resilience. Despite rapidly changing international conditions and mounting external shocks, China stepped up efforts to diversify its foreign trade, actively expanded trade with countries participating in the Belt and Road Initiative (BRI), and sustained steady growth in foreign trade, demonstrating strong resilience. From January to April, the total value of imports and exports of goods increased by 2.4% year on year, 1.1 percentage points higher than in the first quarter. Trade with BRI partner countries rose by 3.9%, up by 1.7 percentage points from the first quarter. Exports of electromechanical products maintained robust growth, increasing by 9.5% year on year in the first four months.

Fourth, the employment situation remained stable overall. China's stable economic growth and the expansion of new growth drivers, coupled with strengthened policies to support employment and entrepreneurship among key groups, contributed to overall employment stability. In April, the surveyed urban unemployment rate stood at 5.1%, down 0.1 percentage point from the previous month, marking the second consecutive month of decline. From January to April, the average surveyed urban unemployment rate was 5.2%, unchanged from the same period last year.

Fifth, new quality productive forces continued to grow. Support for innovation continued to increase, and high-tech industries maintained rapid growth. In April, the value added of high-tech manufacturing enterprises above designated size grew by 10% year on year. Specifically, the value added of aerospace equipment manufacturing and integrated circuit manufacturing rose by 21.4% and 21.3%, respectively. The driving role of "AI Plus" was further strengthened, and the digital industry thrived. The value added of large-scale digital product manufacturing rose by 10% in April. The green and low-carbon transition advanced steadily, and the new energy industry grew rapidly. In April, the output of new energy vehicles (NEVs) and charging piles increased by 38.9% and 43.1%, respectively.

Overall, in April, despite mounting external shocks, China's economy remained stable thanks to its solid foundation, multiple strengths, strong resilience and huge potential. With well-coordinated macro policies and proactive responses across all sectors, the national economy withstood challenges and operated steadily, while the quality of development continued to improve. This further strengthened our confidence and capacity to tackle various risks and challenges. That being said, we must also recognize that the international environment remains highly uncertain, with multiple overlapping risks, and the foundation for the domestic economic recovery still needs to be consolidated. In the next stage, we must thoroughly implement the decisions and plans of the CPC Central Committee and the State Council, adopt more proactive and effective macro policies, and focus on stabilizing employment, enterprises, markets and expectations. We will work solidly to promote high-quality development, strengthen the domestic economic circulation, and drive sustained and sound economic growth. Thank you.

CCTV:

The consumption data for April has attracted widespread attention. Could you tell us whether the overall recovery trend in the consumer market has continued? In terms of the consumption structure, which areas have seen notable growth? And which areas have room for improvement? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, the international environment has been complex and severe, external challenges have increased, and some blockages and sticking points remain in the domestic economic cycle. Vigorously boosting consumption is conducive to effectively responding to external challenges, smoothing the domestic economic cycle, promoting economic improvement, enhancing people's livelihoods and increasing development vitality. All regions and departments have implemented the decisions and deployments of the CPC Central Committee, intensified and expanded the implementation of the "two new" policies, carried out special actions to boost consumption, driven market sales expansion, promoted service consumption growth, and strongly supported economic recovery and improvement. In terms of the situation in April, the policy effects continued to be revealed, the consumer market has grown steadily, and new consumption momentum has developed and grown. The main features are as follows:

First, market sales steadily rebounded. Overall, the total retail sales of social consumer goods mainly based on commodity sales and the retail sales of services represented by service consumption both showed a trend of recovery. From January to April, the total retail sales of consumer goods increased by 4.7% year on year, 0.1 percentage point faster than in the first quarter. Service retail sales grew by 5.1% year on year, also accelerating by 0.1 percentage point compared with the first quarter, marking two consecutive months of acceleration.

Second, sales of goods related to the trade-in of consumer products saw significant growth. As the trade-in program for consumer products was expanded and intensified, it played a notable role in boosting the sales of related goods. In April, retail sales by units above designated size of household appliances and audio-visual equipment, cultural and office supplies, furniture, and communication equipment increased by 38.8%, 33.5%, 26.9% and 19.9% year on year, respectively. These growth rates were significantly higher than the overall growth of commodity retail sales and strongly supported the expansion of market sales.

Third, retail sales of certain essential and upgraded goods grew relatively quickly. The rising demand for higher-quality consumption among residents also contributed to the increased sales of related goods. In April, retail sales by units above designated size of grain, oil and food, sports and entertainment goods, and gold, silver and jewelry rose by 14%, 23.3% and 25.3% year on year, respectively.

Fourth, the consumption of tourism and travel-related services grew rapidly. Driven by strong travel demand during holidays, residents' consumption of tourism, travel and communication services has grown rapidly. From January to April, the retail sales of transportation services, communication and information services, and travel, consulting and rental services all maintained double-digit growth.

Fifth, the new drivers of consumption demonstrated a sound growth momentum. With the rapid development of information technology and the continuous improvement of the logistics distribution system, new forms of efficient and convenient business such as online retail and instant retail have proven popular with consumers. From January to April, the online retail sales of physical goods increased by 5.8% year on year, continuing to surpass the growth rate of total retail sales of consumer goods.

Overall, since the beginning of this year, policies have continued to take effect and market sales have continued to recover, but the internal driving force of consumption still needs to be further strengthened. In the next stage, we will implement special actions to boost consumption, continue to enhance residents' consumption capacity, increase high-quality supply, improve the consumption environment and better release consumption potential to promote healthy economic development and the continuous improvement of people's livelihoods. Thank you.

Bloomberg:

We're wondering, what is the expected impact of the China-U.S. agreement reached in Geneva on China's economic performance? And if tariffs remain at the current levels, what are your expectations for export growth, employment and domestic prices this year? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, the international environment has undergone complex changes. The United States has taken a series of unilateral measures to impose high tariffs on China, severely impacting China-U.S. economic and trade relations. In response, China has taken resolute and strong countermeasures. From May 10-11, China and the United States held a high-level meeting on economic and trade affairs in Geneva, Switzerland, where both sides agreed to significantly reduce tariffs. In this context, there is considerable public interest in the trend and prospects of the Chinese economy.

Looking forward to the next stage, the international environment remains complex and challenging, with many unstable, uncertain and unpredictable factors. Domestic cyclical and structural contradictions are intertwined. However, the fundamentals sustaining China's sound economic growth have not changed. Various macro policies are making concerted efforts. All parties are focused on tackling challenges and actively responding to changes, and the driving force for innovation continues to grow. There are many favorable conditions for the continued recovery of the economy.

First, there is a foundation for recovery. Although the impact of external shocks increased in April, the trend of economic recovery has not changed. According to the major indicators, market sales and the service industry, which are closely linked to the domestic market, continued to rise steadily. From January to April, the total retail sales of consumer goods and the index of services production increased by 4.7% and 5.9%, respectively, both 0.1 percentage point higher than in the first quarter. The exports of goods and industrial production, which are more affected by the international market, remained generally stable. From January to April, exports increased by 7.5%, 0.6 percentage point higher than that in the first quarter; and the added value of industrial enterprises above designated size increased by 6.4%, maintaining overall stability.

Second, there is policy support. Since the beginning of this year, we have implemented more proactive and effective macro policies and increased policy support for the implementation of major national strategies and the building up of security capacity in key areas as well as the promotion of large-scale equipment upgrades and trade-in programs for consumer goods, expanding market demand, driving enterprise production, supporting innovative development and boosting market confidence, with the effects continuing to show. From January to April, the growth rates of major production and demand indicators were significantly faster than the whole of last year. Driven by large-scale equipment renewals, investment in the purchase of equipment increased by 18.2% year on year from January to April, contributing 64.5% to the total investment growth. Recently, relevant departments further cut the reserve requirement ratio (RRR) and interest rates, and established new policy-based financial instruments to support technological innovation and expand consumption. As various policies of the Party Central Committee and the State Council are gradually implemented, it will be conducive to the sustained recovery and improvement of the economy.

Third, there is consumption potential. All regions and departments have conscientiously implemented the decisions and plans of the Party Central Committee, vigorously carried out special actions to boost consumption, intensified and expanded the implementation of the policies of large-scale equipment renewal and consumer goods trade-ins, created diversified consumption scenarios, and actively expanded service consumption, with the effects continuing to emerge. In April, the retail sales of household appliances and audio-visual equipment, cultural and office supplies, furniture, communication equipment, and building and decoration materials related to the trade-in of consumer goods contributed 1.4 percentage points to the growth of total retail sales of consumer goods. From January to April, the retail sales of services increased by 5.1%, rising for two consecutive months. During the May Day holiday, the number of domestic tourists increased by 6.4% year on year. As the policies continue to take effect and consumption momentum continues to grow, the role of consumption in stimulating economic growth is expected to continue to strengthen.

Fourth, there is innovation momentum. All parties have actively promoted the in-depth integration of technological innovation and industrial innovation, promoted the transformation of technological creativity into social productive forces, and continued to reinforce the leading role of innovation, continuously injecting new momentum into economic development. The high-tech industries and emerging service industries have shown sound growth momentum. In April, the value added of high-tech manufacturing enterprises above designated size rose 10% year on year, 3.9 percentage points higher than that of all industrial enterprises above designated size. From January to March, the operating revenue of strategic emerging service enterprises above designated size increased by 8.3% year on year, maintaining rapid growth. The intelligent and green transformations of industries are accelerating, with the added value of the intelligent unmanned aerial vehicle manufacturing industry increasing by 74.2% in April, and the production of new energy vehicles (NEVs) increasing by 38.9%. Breakthroughs have been made in cutting-edge technology fields such as large AI models and humanoid robots, which will further promote industrial upgrading and development.

Overall, supported by multiple favorable factors, China's economy is expected to maintain overall stable performance and steady growth. Thank you.

ThePaper.cn:

Given that investment is an important part of expanding domestic demand, and you've just highlighted the sustained growth in fixed-asset investment, I would like to ask: what are the characteristics of fixed-asset investment currently? And how do you assess China's scope and potential for future investment? Thank you.

Fu Linghui:

Thank you for your questions. Investment is an important component of domestic demand. Since the beginning of this year, all regions and departments have thoroughly implemented the decisions and arrangements of the Party Central Committee and the State Council, actively promoted large-scale equipment renewals and the trade-in of consumer goods, and actively expanded effective investment. Overall, the effects of promoting investment continue to emerge, and have the following main characteristics:

First, investment has maintained overall stable growth. As the policies of implementing major national strategies and building up security capacity in key areas, as well as the policies of large-scale equipment upgrades and consumer goods trade-ins, continue to take effect, investment potential is continuously being stimulated, and investment in fixed assets remains stable. From January to April, investment in fixed assets grew by 4%. Driven by large-scale equipment renewal, investment in the purchase of equipment grew by 18.2% from January to April, contributing 64.5% to the growth of total investment.

Second, manufacturing investment grew rapidly. As China's industrial structure optimizes to meet mid-to-high end market demands, traditional industries are being transformed and upgraded, and emerging industries are developing rapidly, driving faster growth in manufacturing investment. In the first four months, investment in manufacturing increased by 8.8% year on year, significantly faster than the overall investment growth. Driven by industrial upgrading and development, investment in consumer goods production and equipment manufacturing showed good growth momentum. From January to April, investment in consumer goods production and equipment manufacturing increased by 13.4% and 8.2%, respectively.

Third, investment in high-tech services showed good growth momentum. The accelerated integration of technological innovation and industrial innovation has expanded demand for high-tech services, driving investment growth in related industries. From January to April, investment in high-tech services grew by 11.3% year on year, with investment in professional technical services and information services growing by 17.6% and 40.6%, respectively.

Fourth, infrastructure investment grew steadily. With the accelerated issuance and use of special local government bonds, the driving effect of government investment continued to emerge, and infrastructure investment maintained steady growth. From January to April, infrastructure investment grew by 5.8% year on year, faster than the growth of total investment. Specifically, investment in water conservancy management grew by 30.7%, and investment in water transportation grew by 26.9%.

Since the beginning of this year, the economy has been generally stable, and the policies that support major national strategies and enhance security capabilities in key areas as well as promote consumer goods trade-ins and large-scale equipment renewals have been paying dividends. Industrial upgrading and development have made positive progress, offering a solid foundation for expansion of effective investment. Looking forward, China's investment potential is still huge, and there are still many favorable factors supporting investment growth. First, there is ample space for industrial upgrading and development. The new generation of information technology industry is booming, and emerging industries represented by high-end equipment and artificial intelligence (AI) are developing well, with increasing investment in innovation. Second, major regional strategies are guiding and driving development. Since the 18th CPC National Congress, the implementation of a series of major regional strategies have been accelerated. The coordinated development of urban and rural areas and new urbanization present huge investment potential. Third, there is still significant demand for investment in social development and livelihood improvement. Investment in livelihood improvement has been increasing, but there is still a gap compared with the needs of the people. At present, China attaches great importance to ensuring and improving people's livelihoods, continuously increasing investment in the social and livelihood fields, which is also conducive to sustained growth of investment.

However, it should also be noted that the internal driving force for investment growth is clearly insufficient. Therefore, it is necessary to implement the spirit of the Central Economic Work Conference and the "two sessions," by focusing on improving investment efficiency and continuously optimizing the investment structure. Increased investment will be leveraged to help expand demand and optimize supplies and thereby boost healthy and sustained economic development. Thank you.

Market News International:

Given the recent agreement between China and the U.S. in Geneva to reduce tariffs at a significant pace, do you expect a surge in exports to the U.S. over the next few months? And what is your outlook for trade performance for the rest of the year? Thank you.

Fu Linghui:

Thank you for your questions. China-U.S. trade and its impact on overall foreign trade are of great concern to everyone. In April, the external environment changed dramatically, increasing pressure on foreign trade. However, China's foreign trade overcame difficulties and maintained steady growth, demonstrating strong resilience and international competitiveness. From January to April, the total value of China's imports and exports of goods increased by 2.4%, accelerating by 1.1 percentage points compared to the first three months. In April, the total value of China's imports and exports of goods increased by 5.6%, with exports growing by 9.3%, maintaining rapid growth.

Specifically, foreign trade exhibited several features. First, the growth of imports and exports with ASEAN and Belt and Road partner countries accelerated. In April, despite a decline in trade with the U.S., overall foreign trade diversified, and accelerated imports and exports with ASEAN and Belt and Road partner countries strongly supported the continued growth of foreign trade. From January to April, the total value of imports and exports between China and ASEAN increased by 9.2% year on year, accelerating by 2.1 percentage points compared to the first three months; and China's imports and exports with Belt and Road partner countries increased by 3.9%, accelerating by 1.7 percentage points. Second, the growth of imports and exports by private foreign trade enterprises accelerated. In the face of external shocks, these enterprises actively responded and effectively coped through market diversification strategies, achieving clear results. From January to April, the imports and exports of private enterprises increased by 6.8% year on year, accelerating by 1 percentage point compared with the first three months, better than the overall foreign trade situation. Third, the export of mechanical and electrical products grew robustly. With the upgrading and development of China's industries, the competitiveness of technologically advanced mechanical and electrical products continuously enhanced, becoming an important growth point for exports. From January to April, the export value of China's mechanical and electrical products increased by 9.5% year on year, higher than in the first three months.

In the context of increased external shocks, China's foreign trade withstood pressure and continued to grow. First, this fact reflects the firm support provided by a solid industrial foundation. China has a complete industrial system. In particular, the manufacturing industry is being upgraded, occupying an important position in the global industrial chain, and gaining strong advantages in international competition. Second, it reflects the ability of the foreign trade industry to quickly adjust and respond. China has been steadily diversifying foreign trade, the ability of foreign trade enterprises to expand markets has been increasing, and these enterprises have shown strong ability to adapt to changes prompted by trade frictions and supply chain disruptions. Third, this resilience also reveals the supportive role of various policies to stabilize foreign trade. In the face of external shocks, various regions and departments have strengthened support for foreign trade enterprises and stepped up export tax rebates, financial support, trade facilitation and other policies, creating a policy environment for enabling the development of foreign trade.

In the next stage, the substantial reduction of tariffs between China and the U.S. will be conducive to the growth of bilateral trade and the recovery of the world economy. At present, the international environment is still complex and severe, and unilateralism and protectionism are on the rise, which has seriously impacted the international economic and trade order and restricted global economic growth. However, the trend of international cooperation for mutual benefit will not change, nor will China's firm commitment to expanding its opening up to the outside world. The diversification of foreign trade is steadily advancing, and policies to promote foreign trade are continuously taking effect, which will support the stable development of foreign trade. Thank you.

National Business Daily:

Just now, you mentioned multiple sets of data on the value added of industrial enterprises above designated size across the country. What are the characteristics of the value added of industrial enterprises above designated size nationwide in April? How do you evaluate the future development trend of the country's industrial production? Thank you.

Fu Linghui:

Thank you for your questions. Industrial production is essential for stable economic growth. Since the beginning of this year, with the continued effectiveness of existing policies and the effective implementation of new policies, the policy mix has continued producing effects. Industrial production has maintained rapid growth, and the transformation of industrial development toward high-end, intelligent and green has provided strong support for high-quality economic development. The characteristics are as follows:

First, industrial production has maintained rapid growth. The combined effects of macro policies continue to emerge, and various regions are increasing efforts to promote industrial development, and industrial production has maintained steady and rapid growth. In April, the value added of industrial enterprises above designated size increased by 6.1% year on year. As mentioned earlier, this growth rate is relatively high among the monthly growth rates since last year. Expansion was reported in over 80% of China's major industrial sectors in April, with 36 out of 41 registering year-on-year growth.

Second, the industrial transformation and upgrading is continuing. The trend of high-end industrial development is clear, and the high-tech manufacturing industry has a good growth momentum. In April, the value added of high-tech manufacturing above designated size increased by 10% year on year, significantly faster than the growth of industrial enterprises above designated size. From the perspective of industries, the value added of integrated circuit manufacturing and optoelectronic device manufacturing increased in April by 21.3% and 19%, respectively. In terms of products, the output of 3D printing equipment and industrial control computers and systems increased in April by 60.7% and 29.5%, respectively.

Third, the new momentum of industrial growth continues to strengthen. The intelligent and green transformation of industry is accelerating, and related industries and products are growing rapidly. The development trend of the new energy industry is relatively good. In April, the output of NEVs and lithium-ion vehicle batteries increased by 38.9% and 61.8%, respectively. The production of intelligent products grew rapidly. In April, the value added of the intelligent unmanned aircraft manufacturing and intelligent vehicle equipment manufacturing increased by 74.2% and 29.3%, respectively, which was significantly faster than the growth rate of industrial enterprises above designated size. The output of industrial robots increased by 51.5%.

Fourth, the driving effect of policies for the large-scale renewal of equipment and the trade-in of consumer goods is evident. The intensification and expansion of the policies for the large-scale renewal of equipment and the trade-in of consumer goods has promoted technological upgrading in industries and the expansion of market demand, thereby facilitating the growth of industrial production. Driven by the equipment renewal policy, the output of primary processing machinery for agricultural products and special packaging equipment maintained double-digit growth in April; Driven by the trade-in policy, the output of products such as electric bicycles and LCD screens maintained rapid growth in April.

Overall, since the beginning of this year, industrial production has grown steadily and rapidly. This can be attributed to the continuous release of the effectiveness of macro policies, the boost from major national projects and programs, including those aligned with major national strategies, building up security capacity in key areas, and the large-scale renewal of equipment and the trade-in of consumer goods to stimulate the potential of domestic demand, as well as the influence of the continuous deepening of industrial transformation and upgrading and the enhanced momentum of innovative development. Looking into the future, the high-end, intelligent and green industrial development trend is clear, and new quality productive forces are constantly being cultivated and strengthened. However, it should also be noted that the prices of industrial products are still at a low level, and some enterprises in certain industries are still facing many difficulties in production and operation. In the next stage, we should continue to expand domestic demand, implement various policies to support industrial development, promote the integrated development of scientific and technological innovation and industrial innovation, optimize the industrial structure, accelerate the transformation and upgrading of traditional industries, cultivate and strengthen emerging industries, and promote the sustained and healthy development of industry. Thank you.

CNBC:

I have two questions. In April, foreign trade enterprises faced a rapid increase in tariffs and the suspension of orders. What impact did this have on the overall economic operation? And what impact did it have on employment? Also, how is the recent real estate situation in third- and fourth-tier cities different from that in first- and second-tier cities? What is your outlook? Thank you.

Fu Linghui:

Thank you for your questions. From the relevant data released earlier, it can be seen that China's economic operation remained generally stable in April. In April, as external shocks intensified, some foreign trade companies faced increased production and operation pressures. However, from the perspective of the overall economic operation, the main production and demand indicators maintained steady and relatively fast growth in April, and the employment situation remained generally stable. New growth drivers continue to grow, the green transformation is deepening, and the new and positive trend is sustained. There are many questions regarding this situation. Why can the Chinese economy maintain such steady growth despite external shocks? In the face of external shocks, China's economy has been able to withstand pressure and grow steadily. This can not only be attributed to its solid economic foundation, multiple advantages, strong resilience and great potential, but also to the coordinated macro policies and the proactive responses from all sectors. Moreover, it is the result of China's unwavering commitment to promoting high-quality development and accelerating the formation of a new development pattern.

First, the economic foundation is stable, there is ample space for development, and the capability to resist pressure is strong. "The Chinese economy is not a pond but an ocean." China has a super-large economy, ranking second in the world in terms of economic aggregate, and has maintained the world's largest manufacturing scale for 15 consecutive years. With a solid material and technological foundation, a complete industrial system and strong supporting capabilities, the foundation for economic development is solid. At the same time, China has huge market and broad space for development. With over 1.4 billion and a consumer market scale ranking among the top in the world, China has significant potential for improvements. These facts determine China's strong capabilities to cope with various risks and challenges.

Second, steady progress has been made in pursuing high-quality development, which provides an important guarantee for responding to changes with proactive steps. Since the 18th CPC National Congress, the CPC Central Committee has taken a comprehensive view, accurately perceived the major domestic and international development trends, made significant decisions and deployments to promote high-quality development, unwaveringly promoted economic structure adjustment and renewal of driving forces, developed new quality productive forces according to local conditions, to effectively pursue higher-quality economic growth and appropriately increase economic output. At the same time, in the face of the increasingly complex and severe external environment, following the decisions and deployments of the CPC Central Committee, we accelerated the construction of a new pattern of development, enhanced the resilience and security industrial and supply chains, and firmly grasped the initiative in development. These steps have provided important guarantees for China's economy to proactively respond to severe changes to the external environment.

Third, the intensified and effective macro policies have played a pivotal role in stabilizing the economy. On Sept. 26 last year, the meeting of the Political Bureau of the CPC Central Committee decisively deployed a package of incremental policies, effectively boosted social confidence, and significantly promoted economic recovery. This year, macro policies have become more proactive and effective. Both existing and new policies continue to exert force, significantly expanding demand, promoting production, supporting innovation and stabilizing expectations, playing a crucial role in maintaining stable economic operation. From January to April, the growth rates of total retail sales of consumer goods and the service industry production index both accelerated by 0.1 percentage point compared to the first three months, and the cumulative growth rates of fixed asset investment and value added of industries above designated size remained basically stable. In April, the transaction volume of the Shanghai and Shenzhen stock exchanges increased by more than 30%. In the face of challenges from external shocks, in late April, the Political Bureau of the CPC Central Committee held a meeting to make arrangements for the economic work, effectively enhancing confidence in social development.

Fourth, we have actively responded to changes against all odd and provided strong support for the stable operation of the economy. In the face of external shocks, all regions and departments resolutely implemented the decisions and deployments of the CPC Central Committee and the State Council, made full use of fiscal and monetary policies, accelerated the issuance and use of local government special bonds and ultra-long-term special national bonds, further reduced reserve requirements and interest rates, promoted the early implementation key tasks and achieved real results, assisting the stable operation of the economy. For enterprises significantly affected by tariffs, the government has promptly increased efforts to assist and alleviate difficulties, effectively consolidating the micro-foundation of economic operations. In the face of the impact of increased tariffs by the United States, many foreign trade enterprises actively responded and took the initiative to expand diversified markets, promoting stable growth in foreign trade. From January to April, the growth rate of China's total imports and exports of goods accelerated by 1.1 percentage points compared to the first quarter.

All this demonstrates that China boasts a solid economic foundation, effective development, institutional advantages, strong policy support and a vibrant market. China is fully equipped and confident in responding to various risks and challenges. Thank you.

Jiupai News:

As mentioned just now, the CPI edged down 0.1% year on year in April, while the core CPI rose 0.5% year on year. What are the reasons behind this? How would you assess this phenomenon? Thank you.

Fu Linghui:

Thank you for your questions. Changes in the CPI are also a major concern for the public. In April, the CPI declined slightly year on year, but shifted from a decrease to an increase on a month-to-month basis, continuing the overall trend of stability. On a year-on-year basis, the CPI dipped 0.1%, unchanged from the previous month. By category, prices rose in seven of the eight major groups, with most categories maintaining an upward trend. Only the price of transportation and communication fell, dropping 3.9%. The slight year-on-year decline in the CPI was mainly due to the impact of lower international oil prices on domestic prices. In April, energy prices fell 4.8% year on year, widening by 2.2 percentage points from the previous month. Gasoline prices dropped 10.4%, which pulled the CPI down by about 0.38 percentage point. On a month-on-month basis, the CPI rose 0.1% in April, compared to the 0.4% decrease in the previous month. The shift from a decline to a rise was mainly driven by rebounds in food and travel services. Prices for some meats, aquatic products and fresh fruits rose month on month, pushing food prices up by 0.2%. Driven by higher demand and the impact of holidays, prices for air tickets, vehicle rentals, hotel accommodations, and tourism grew between 3.1% and 13.5% month on month, contributing to the overall rise in the CPI.

Food and energy prices are more susceptible to short-term factors. To accurately track price trends, it is important to consider not only overall changes in the CPI but also changes in the core CPI. In April, the core CPI, which excludes food and energy prices, rose 0.5% year on year, about the same as the previous month. Service prices rose 0.3%, while prices for industrial consumables excluding energy increased 0.4%. Both growth rates remained essentially stable compared with the previous month. From a dynamic perspective, the core CPI increased by 0.3% year on year in January-February, 0.5% in March, and 0.5% in April, showing an overall steady upward trend. This reflects the effectiveness of macroeconomic policies and the growing impact of expanding domestic demand on prices.

However, it is important to recognize that current prices remain at a low level, which adds pressure to business operations and may affect employment and income growth for residents. Therefore, it is important to keep prices within a reasonable range. Next, we should continue to leverage the combined effects of macroeconomic policies, further expand domestic demand, deepen supply-side structural reforms, improve economic circulation and continuously regulate market order to promote a reasonable rebound in prices. Thank you.

Zhonghongwang.com:

Although the PPI declined year on year in April, we are seeing expanding macroeconomic policies to boost consumption, faster growth in high-tech industries, increasing demand in some sectors and positive price changes in certain areas. What are your thoughts on this situation? How do you assess and analyze the future trend of industrial product prices? Thank you.

Fu Linghui:

Thank you for your questions. In April, the year-on-year decline in the PPI widened, mainly due to falling international energy prices and price declines in some domestic industries. In April, the PPI fell 2.7% year on year, widening by 0.2 percentage point from the previous month. Although the PPI continued to decline year on year, prices in some sectors have improved thanks to intensified and effective implementation of macroeconomic policies, recovering market demand, and the rapid growth of new economic drivers.

First, demand in the high-end manufacturing sector has increased. Economic restructuring is advancing steadily, demand for high-tech products is expanding, and prices in related industries have risen to some extent. In April, prices for manufacturing wearable smart devices rose 3%, while aircraft manufacturing prices increased 1.3%. Driven by advances in intelligence and digitalization, manufacturing prices for some digital products are also rising. In April, prices for integrated circuit packaging and testing climbed 2.7%, while server prices rose 1%.

Second, the impact of policies aimed at boosting domestic demand is becoming stronger. The "two new" policies, which refer to large-scale equipment upgrades and consumer goods trade-ins, are delivering positive results. Demand for some consumer goods and equipment manufacturing products is expanding, driving up prices in related industries and products. In April, the year-on-year price declines for household washing machines and NEVs narrowed by 0.3 and 0.2 percentage points, respectively, compared with the previous month. The year-on-year price declines for specialized equipment manufacturing for electrical machinery and machinery used in farming, forestry, livestock and fishing narrowed by 0.7 and 0.2 percentage points, respectively.

Third, supply and demand conditions in some traditional industries have improved. In April, year-on-year price declines in the ferrous metal smelting and rolling industry and the nonmetallic mineral products industry narrowed by 1.4 and 1 percentage points, respectively, compared to the previous month. These developments demonstrate that by fostering new quality productive forces and implementing the "two new" policies and the policies aimed at fulfilling major national strategies and enhancing security capabilities in key areas, we have improved the supply-demand dynamics of industrial products.

However, it is important to recognize that the PPI remains on a downward trend, and prices in some industries have fallen significantly, affecting industrial enterprises' efforts to increase profits. In response, it is necessary to continue expanding domestic demand, vigorously promote technological and industrial innovation, optimize and adjust production capacity and structure, and achieve a high-level dynamic balance between supply and demand. These efforts will help return industrial product prices to a reasonable range, improve business operations, boost development confidence, and promote sustained healthy economic growth. Thank you.

Zhou Jianshe:

I see that two more journalists have their hands raised.

Dazhong Daily:

In the current economic environment, the stability of the job market is essential. What are the key highlights and issues to watch in the April employment data? In response to employment difficulties, which areas should be prioritized going forward to promote job growth? Thank you.

Fu Linghui:

Thank you for your questions. Employment stability affects every household. The CPC Central Committee and the State Council attach great importance to stabilizing employment and have introduced policy measures to promote high-quality, full employment. Support for enterprises in creating job opportunities has been strengthened, and employment for key groups, such as young people and rural migrant workers, has been prioritized. Since the beginning of this year, China's economy has maintained steady growth, industries have developed positively, and new growth drivers have continued to expand. In addition, policies supporting employment and entrepreneurship for key groups have been further intensified. Together, these factors have contributed to overall employment stability.

In terms of unemployment rate trends, the national urban surveyed unemployment rate rose in January and February due to the impact of the Spring Festival. However, as business activity and production picked up after the holiday and more migrant workers returned to work, labor market activity increased, resulting in a steady decline in the unemployment rate during March and April. Overall, the national urban surveyed unemployment rate has continued to decline steadily. In April, it stood at 5.1%, down 0.1 percentage point from the previous month and marking a decline for two consecutive months. Among key groups, the surveyed unemployment rates for both rural migrant workers and young people also declined. In April, the national urban surveyed unemployment rate for migrant workers with agricultural household registration was 4.7%, down 0.3 percentage point from the previous month. The rate for those aged 16 to 24, excluding students still in school, also declined for a second consecutive month.

Nevertheless, structural employment challenges remain significant. While young people continue to face considerable employment pressure, some sectors are still struggling to recruit workers, especially front-line skilled employees. The imbalance between labor supply and demand remains a significant challenge. Meanwhile, the complex and evolving external environment is also exerting pressure on China's labor market. Looking ahead, amid a complex and evolving external environment and growing uncertainties, we will remain focused on our own work and fully implement the decisions and plans set by the CPC Central Committee and the State Council. We will intensify efforts to stabilize and expand employment, promote full employment, enhance employment quality, and continue working to safeguard and improve people's livelihoods. Thank you.

Zhou Jianshe:

One last question, please.

21st Century Business Herald:

Based on the data released this year, how would you assess the real estate sector's performance in April? What is the outlook for the sector's development going forward? Thank you.

Fu Linghui:

Thank you for your questions. Another reporter also raised this issue earlier, and I forgot to address it. The real estate sector remained basically stable in April. Of course, conditions vary across different regions, with cities showing distinct trends shaped by factors such as economic growth and population concentration. Overall, however, the real estate market has remained stable.

Since the fourth quarter of 2024, all localities and government departments have worked to implement the CPC Central Committee's decision to restore stability in the real estate market. A series of policies have been introduced to steady the housing market, help people meet their needs for adequate and improved housing, and reduce the cost of home buying. These measures have led to positive progress. Since the beginning of this year, these policies have continued to show results, and the real estate market has been gradually recovering and stabilizing. Based on April's data, the real estate market remained generally stable in both transactions and prices, with some first- and second-tier cities seeing increased transaction activity. The main characteristics are as follows:

First, housing market transactions remained broadly stable. As various policies aimed at stabilizing the property market continue to take effect, property sales have started to recover, with transactions in some cities showing positive trends. From January to April, the sales area of new commercial housing fell by 2.8%. The pace of decline narrowed 0.2 percentage point compared with the January-to-March period. Among 40 key cities, the sales area of new commercial housing increased by 0.1% year on year, while sales volume rose by 2%.

Second, overall housing prices remained stable. In April, across the 70 large and medium-sized cities tracked, sales prices for new commercial housing in first- and second-tier cities remained unchanged from the previous month. In contrast, sales prices in third-tier cities edged down slightly. From a year-on-year perspective, in April, the decline in commercial housing prices continued to narrow across all city tiers among the 70 large and medium-sized cities. Specifically, the year-on-year decline in sales prices for new commercial housing narrowed by 0.7 percentage point in first-tier cities, 0.5 percentage point in second-tier cities, and 0.3 percentage point in third-tier cities. Meanwhile, the year-on-year decrease in sales prices of secondhand homes narrowed by 0.9, 0.5 and 0.4 percentage point, respectively.

Third, housing inventory and new construction activity showed signs of improvement. As property sales have rebounded, real estate developers have reduced their inventories of commercial housing, and new construction activity has picked up. By the end of April, the area of commercial housing for sale had continued to decline compared with the end of March, marking the second consecutive month of decreases. From January to April, the year-on-year decline in the area of new housing construction projects narrowed by 0.6 percentage point compared with the decrease recorded from January to March.

Overall, as a result of various policies aimed at restoring and stabilizing the real estate market, the sector remained largely stable in April. Looking ahead, demand among residents for green, smart and safe housing continues to grow. There is also strong potential for upgrading old neighborhoods and improving the quality and efficiency of housing construction. Nevertheless, the overall property market is still undergoing adjustment and transformation. Demand for both first homes and improved housing has yet to be fully unleashed, and some regions continue to face significant pressure to reduce existing housing inventory. Continued efforts are needed to further stabilize the sector.

Moving forward, we need to earnestly implement the decisions and plans set by the CPC Central Committee and the State Council, and proactively adapt to the significant changes in supply-demand dynamics in the property market. We will strengthen policy coordination, continue increasing the supply of high-quality homes, and actively promote urban renewal projects and the construction of government-subsidized housing. We will also accelerate the development of new growth models for the property sector to better meet people's aspirations for improved living conditions and to promote the steady and healthy growth of the real estate sector. Thank you.

Zhou Jianshe:

Today's press conference is hereby concluded. Thank you, Mr. Fu, and thank you to all our friends from the media. Goodbye!

Translated and edited by Zhang Jiaqi, Wang Xingguang, Liu Caiyi, Xu Kailin, Liu Sitong, Yang Xi, Liu Ziying, Zhang Tingting, Zhu Bochen, Huang Shan, Fan Junmei, Li Huiru, Ma Yujia, Li Xiao, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Wang Ruihe, deputy director of the Legislative Affairs Commission of the Standing Committee of the National People's Congress

Ms. Zheng Bei, vice chairwoman of the National Development and Reform Commission

Mr. Wang Zhenjiang, vice minister of justice

Ms. Cong Lin, vice minister of the National Financial Regulatory Administration

Mr. Fang Guanghua, vice chairman of the All-China Federation of Industry and Commerce

Chairperson:

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

Date:

May 8, 2025

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). The 15th session of the Standing Committee of the 14th National People's Congress (NPC) voted to pass the Private Sector Promotion Law of the People's Republic of China on April 30, which will come into effect on May 20, 2025. To help everyone better understand the law, today we have invited Mr. Wang Ruihe, deputy director of the Legislative Affairs Commission of the NPC Standing Committee; Ms. Zheng Bei, vice chairwoman of the National Development and Reform Commission (NDRC); Mr. Wang Zhenjiang, vice minister of justice; Ms. Cong Lin, vice minister of the National Financial Regulatory Administration (NFRA); and Mr. Fang Guanghua, vice chairman of the All-China Federation of Industry and Commerce (ACFIC), to brief you on the Private Sector Promotion Law and answer your questions.

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

Wang Zhenjiang:

Good morning, everyone. I am very pleased to attend this morning's press conference together with colleagues from the Legislative Affairs Commission of the NPC Standing Committee, the NDRC, the NFRA and the ACFIC. Thank you all for your concern and support for the legislative work associated with the Private Sector Promotion Law. Next, I will introduce the research, drafting and formulation of the law.

The Central Committee of the Communist Party of China (CPC) and the State Council attach great importance to the development of the private economy. Since the reform and opening up in 1978, China's private economy has developed rapidly under the guidance of the Party's lines, principles and policies. Especially since the 18th CPC National Congress, the Party Central Committee with Comrade Xi Jinping at its core has taken a series of major measures to promote the development of the private economy. The private economy has continued to play an increasingly important role in China's national economy and social development. At the same time, due to a combination of multiple internal and external factors, such as changes in the external environment and inadequate policy implementation, the private economy faces some difficulties and challenges in areas including fair participation in market competition, equal access to production factors, obtaining investment, financing and services, and the protection of legitimate rights and interests. There is an urgent need to codify the guiding principles and effective practices of the CPC Central Committee and the State Council on the private economy, in order to consolidate the achievements of reforms. It is also necessary to promptly improve relevant institutional measures to address prominent issues in practice, respond to public concerns, boost confidence and unleash the internal dynamism of private enterprises. These efforts will foster a legal environment and social atmosphere conducive to the development of all forms of ownership, including the private economy, enable us to stay focused on managing our own affairs well, and further consolidate the momentum of economic recovery and long-term growth. We will counter the uncertainties of a rapidly changing external environment with a firm commitment to high-quality development. Formulating the Private Sector Promotion Law is a major decision and deployment made by the Party Central Committee with Comrade Xi Jinping at its core. The need to formulate this law was clearly stated at the third plenary session of the 20th CPC Central Committee. The 2024 Central Economic Work Conference explicitly called for the introduction of this law.

In accordance with the work plan, the Ministry of Justice and the NDRC requested the Legislative Affairs Commission of the NPC Standing Committee to take the lead in forming a drafting task force composed of 17 relevant departments from central and state organs. The task force thoroughly studied and comprehended the guiding principles of General Secretary Xi Jinping's important instructions and the key points of his speech delivered at the symposium on private enterprises on Feb. 17 this year. The task force, in line with the guidelines and policies of the CPC Central Committee and the State Council, widely solicited public opinions, conducted in-depth research and analysis, and drafted the law. After the third plenary session of the 20th CPC Central Committee, the task force revised the draft in alignment with the session's guiding principles, solicited public opinions again, and further refined it based on public feedback. After being discussed and approved at a State Council executive meeting, the draft was submitted to the NPC Standing Committee for deliberation in December 2024. The NPC Standing Committee reviewed the draft three times — in December 2024, February 2025 and April 2025 — and released it again for public comment during the period. On April 30, 2025, the 15th session of the 14th NPC Standing Committee voted to pass the Private Sector Promotion Law of the People's Republic of China, which will officially come into effect on May 20.

The law consists of nine chapters and 78 articles, establishing and improving relevant systems and mechanisms around fair competition, investment and financing promotion, scientific and technological innovation, regulatory guidance, service support and the protection of rights and interests. It translates the CPC Central Committee's commitment to equal treatment and protection of the private economy into concrete legal provisions, in a bid to continuously improve a stable, fair, transparent and predictable environment for its development. As the first foundational law dedicated to the development of the private economy, the law marks a major step in implementing the decisions of the third plenary session of the 20th CPC Central Committee and the important remarks made by General Secretary Xi Jinping at the symposium on private enterprises. It is a vivid embodiment of Xi Jinping Thought on the Rule of Law and Xi Jinping Thought on Economy, a landmark event in building China's socialist market economy, and a milestone in the development of its private sector. The law marks several breakthroughs. It is the first to enshrine into legal doctrine the principle of "unswervingly consolidating and developing the public sector and unswervingly encouraging, supporting and guiding the development of the non-public sector." It is the first to clearly define the legal status of the private economy, and the first to explicitly state that "promoting the private sector's sustained, healthy and high-quality development is a long-term major national policy." This fully demonstrates the firm commitment of the CPC Central Committee in supporting the growth of the private sector and sends a clear message that developing the private economy remains a consistent and enduring policy of both the Party and the state. This will further unleash the internal drive and creative vitality of the private economy, boost confidence among private business operators, and inspire their entrepreneurial spirit and determination, fostering a strong sense of commitment to the nation and strengthening their resolve to be builders of socialism with Chinese characteristics and contributors to Chinese modernization.

Laws alone cannot implement themselves. We hope all regions and government departments will take the adoption of the Private Sector Promotion Law as an opportunity to rigorously implement its provisions, ensuring thorough and accurate publicity and interpretation of the law and full compliance with its requirements, and promote the promulgation and implementation of supporting regulations as soon as possible. Efforts should be made to coordinate and refine the supportive and guarantee measures, and improve the institutional system for the development of the private sector. We need to further improve the law-based business environment, and effectively protect the legitimate rights and interests of private economic organizations and their operators in accordance with the law. We will step up efforts to foster a positive social atmosphere that supports the development of private businesses, and promote their sustained, healthy and high-quality development.

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

Xing Huina:

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

The Poster News APP:

As China's first fundamental law specifically dedicated to promoting the private sector, what are the important legal implications of formulating and implementing the Private Sector Promotion Law? Thank you.

Wang Ruihe:

As everyone knows, over the past 40 years of reform and opening up, China's private sector has grown from humble beginnings to remarkable strength, achieving substantial development. At the same time, theories and policies on the private sector continue to be rolled out while evolving with the times and undergoing continuous improvement. General Secretary Xi Jinping said that the basic principles of the Party and the state on the development of the private sector have been incorporated into the system of socialism with Chinese characteristics and will be consistently adhered to and implemented, which cannot and will not be changed. The adoption of the Private Sector Promotion Law has put the Party and the state's fundamental principles, policies and some effective practices for fostering private sector growth into law. By doing so, the law for supporting and protecting the development of the private sector has been incorporated into the socialist legal system with Chinese characteristics. In terms of legal significance, this marks an important innovation. Moreover, it is consistent with many provisions of the Constitution, providing legal assurance for the proper enforcement of the Constitution.

Specifically, the current Constitution has established the fundamental economic system with public ownership as the mainstay and multiple forms of ownership developing together. It also stipulates that the state protects the legitimate rights and interests of private businesses and the non-public sector of the economy. The country encourages, supports and guides the development of the non-public sector, and supervises and regulates the non-public sector according to the law. Article 1 of the Private Sector Promotion Law clearly stipulates that: "The law is formulated in accordance with the Constitution." It stipulates that the state upholds and improves the basic socialist economic systems, including the system under which public ownership is the mainstay and diverse forms of ownership develop together, the system under which distribution according to work is the mainstay while multiple forms of distribution exist alongside it, and the socialist market economic system. The country always unswervingly consolidates and develops the public sector, and unswervingly encourages, supports and guides the development of the non-public sector. This has been written into the Private Sector Promotion Law. At the same time, the law clarifies the role of the private sector: Private sector is an important part of the socialist market economy, a vital contingent for promoting Chinese modernization, a significant foundation for high-quality development, and a principal force for promoting the development of China into a great modern socialist country in all respects and the rejuvenation of the Chinese nation. Legally defining this status reflects the judicious judgment of the CPC Central Committee and represents a broad societal consensus. Promoting the sustainable, healthy and high-quality development of the private sector is a crucial principle and policy that the state has long upheld. The formulation of the law fully demonstrates that our Party and the state will not and cannot change the fundamental policies regarding the development of the private sector. This legislation will undoubtedly improve the legal framework for the high-quality development of the private sector, and make supporting systems more robust and effective. Thank you.

CCTV:

The Private Sector Promotion Law has drawn significant public attention given its broad scope. Regarding this comprehensive piece of legislation, how did the drafting body ensure the following aspects during drafting process: fully aligning with the central authorities' principles and policies; proactively addressing public concerns; and establishing its status as a foundational law? Thank you.

Wang Zhenjiang:

Thank you for your question. I'll take this one. This is an extremely important question, and has been a key focus for our task force since day one. The Private Sector Promotion Law, serving as China's first fundamental law specifically designated for promoting the development of the private sector, carries significant political weight, policy importance and professional rigor. In drafting this law, the task force focused on the following key priorities:

First, we must implement the principles and policies made by the CPC Central Committee and the State Council on the private sector in a complete, accurate and comprehensive manner. Since the reform and opening up, and especially since the 18th CPC National Congress, the CPC Central Committee and the State Council have put forward a series of principles and policies promoting the development of the private sector. Practice has proven that these policies have provided important guarantees and fundamental guidelines for ensuring the sustained, healthy and high-quality development of China's private sector. It is therefore necessary to codify them into legal systems to better allow the rule of law to play its role in consolidating foundations, ensuring stable expectations and delivering long-term benefits. Therefore, the legislation must codify the central authorities' major principles, policies and propositions regarding the private sector, notably unswervingly consolidating and developing the public sector, and unswervingly encouraging, supporting and guiding the development of the non-public sector, as well as the private sector's status and significance. Transforming these policies into binding legal requirements is pivotal to better safeguarding the private sector's fundamental and political direction for development. During the drafting process, the third plenary session of the 20th CPC Central Committee was held, which made new arrangements for leveraging the role of private enterprises in technological innovation. In line with the guiding principles of the plenary session, we made such provisions in the law as supporting private economic organizations in participating in national sci-tech research projects, supporting qualified private entities to lead and undertake major national technological research tasks, and granting private enterprises access to major national scientific research infrastructure. The goal is to allow the private sector to play a greater role in advancing the cause of socialism with Chinese characteristics.

Second, we have adhered to open-door legislation, pooling wisdom and building consensus. Promoting the private sector involves a wide range of areas. Which issues should be addressed now through legislation, which measures should be written into law and which should be clarified in subsequent supporting regulations — all these need to be decided after we listen to the views and gathered the ideas of all parties concerned. Therefore, in the drafting process, we always adhered to open-door legislation to pool wisdom. We set up a special working group composed of 17 relevant departments and institutions under the central authorities to jointly study and draft the law. An important consideration behind this was to collect opinions widely so that good suggestions from all sides could be timely and fully reflected and embodied in the draft law. As soon as the working group was established, we held a symposium to listen to the opinions and suggestions of private enterprises. Next, we entrusted authoritative legal research institutions, such as the China Law Society and the Institute of Law of the Chinese Academy of Social Sciences, to organize multiple expert conferences to conduct in-depth discussions on issues involving legislation. At the same time, department heads of the working group led teams to conduct field investigations, visiting and listening to the opinions of deputies to people's congresses, members of the Chinese People's Political Consultative Conference (CPPCC), and representatives of private enterprises. During the drafting and reviewing by the State Council and deliberation by the NPC Standing Committee, we solicited public opinions twice on the draft law, and carefully analyzed and took on board the opinions and suggestions from all sides. After repeated research and discussions, we ultimately focused on fair competition, investment and financing promotion, scientific and technological innovation, standardized operation, service guarantees, and the protection of rights and interests. These are widely seen as the most prominent issues facing the private sector in its current development stage. The framework and main contents of the law are also based on these issues. It can be said that the process of formulating the Private Sector Promotion Law itself is a process of pooling wisdom and building consensus, as well as a vivid practice of making laws in a well-conceived, democratic, and law-based manner, and implementing whole-process people's democracy.

Third, based on the positioning of fundamental law, we have taken coordinated action to define the foundational institutional frameworks while leaving appropriate space for evolution in the future. Many provisions in the Private Sector Promotion Law are highly targeted, such as regulations on "pay-when-paid" clauses and administrative law enforcement. The provisions are concise and informative, and will have extraordinary significance if fully implemented. Of course, as a fundamental law, it is not necessarily better to be more detailed. As objective practice evolves quickly, overly detailed provisions can sometimes constrain the development of practice. Therefore, in the legislative process, we always adhered to overall planning for both the present and the long term. For major issues that need to be resolved through legislation at present, we focused on clarifying the main mechanisms and measures, foundational institutional frameworks, and main legal requirements, while leaving space for future practical developments. As stipulated in the law, relevant departments of the State Council should coordinate the research and formulation of policies and measures to promote private investment, while governments at all levels and their relevant departments should establish mechanisms for government-enterprise communication. This not only clarifies the establishment of the mechanisms but also leaves room for the next step to introduce supporting measures and refine implementation measures based on actual conditions. In addition, there is another category of major issues, which has been reflected by various parties as being prominent in practice and requiring significant efforts to resolve, which includes illegal cross-regional enforcement and administrative and criminal interference in economic disputes. For this type of issues, the law explicitly makes prohibitive provisions, stating the principles and bottom lines of the law, and enhancing the binding force. The implementation of these provisions will play an important role in resolving disputes and protecting the lawful rights and interests of the private sector in accordance with the law.

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

Phoenix TV:

The Private Sector Promotion Law will officially come into effect on May 20. What impact is expected from the implementation of the law on the development of the private sector? What practical impact will it have on private enterprises or private economic organizations? Thank you.

Zheng Bei:

Thank you. I will answer your questions. In his important speech at the symposium on private enterprises on Feb. 17 this year, General Secretary Xi Jinping pointed out the direction for the development of the private economy on the new journey of the new era, significantly inspiring enthusiasm and boosting confidence. The introduction of the Private Sector Promotion Law is a major step in implementing the guiding principles of General Secretary Xi Jinping's speech. I believe that this law is of great significance and has far-reaching impact on the high-quality development of the private sector.

First, the law will further stabilize expectations. The Private Sector Promotion Law stipulates that we should work unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector, and that the promotion of the sustainable, healthy and high-quality development of the private economy is a significant and long-term policy of China. The law emphasizes the basic principles of equal treatment, fair competition, equal protection and common development, fully demonstrating the Party and the state's unequivocal commitment to and firm resolve in promoting the development of the private economy. It reinforces development certainty through legal stability, offering reassurance to private enterprises as they pursue growth with greater confidence.

Second, it will further strengthen confidence. The Private Sector Promotion Law actively responds to the concerns of private enterprises and establishes targeted institutional arrangements. Regarding fair participation in market competition, the law stipulates that China will implement a unified nationwide negative list system for market access and will enforce fair competition review mechanisms. The law also ensures that businesses can enter any sector that is not explicitly prohibited. In terms of equal access to production factors, the law stipulates that the state guarantees private economic organizations equal access to capital, technology, human resources, data, land and other production factors as well as public service resources in accordance with the law. This ensures a level playing field for all stakeholders. On equal legal protection, the law stipulates that the personal rights, property rights, and operational autonomy of private economic organizations and their operators are protected by law. It emphasizes that these rights must not be violated.

Third, it will further promote high-quality development. Since reform and opening up began, and particularly since the 18th CPC National Congress, the private sector has grown to a considerable scale. Its overall strength, innovation capability and market competitiveness have improved significantly, making it an important force in building national strength and advancing national rejuvenation. The Private Sector Promotion Law addresses current needs while planning for the future, providing strong legal protection for the high-quality development of the sector. On the one hand, it focuses on encouragement and support. For example, it includes dedicated chapters such as "Investment and Financing Promotion" and "Technological Innovation," which support private enterprises in participating in major national strategies and projects, and in investing and starting businesses in strategic emerging industries and future industries. The law also encourages them to actively contribute to promoting technological innovation, cultivating new quality productive forces, and building a modern industrial system. On the other hand, it focuses on guidance and regulation. It guides private enterprises to improve their governance structure and management systems, commit to lawful and compliant operations, strengthen risk prevention, fulfill social responsibilities, and promote the sound development of the private sector and the well-rounded growth of those engaged in it.

We believe that the promulgation of this law will inspire private enterprises and entrepreneurs to be bold and daring, making new and greater contributions to advancing Chinese modernization. Thank you.

National Business Daily:

The Private Sector Promotion Law has a special article in the general provisions that stipulates the role and responsibilities of the ACFIC. How will the ACFIC serve as an effective bridge between government and business following the law's enactment to support sustainable, healthy and high-quality private sector development? Thank you.

Fang Guanghua:

Thank you for your question. Promoting the sound development of the private sector and the well-rounded growth of those engaged in it is the ACFIC's main responsibility. Article 7 of the General Provisions of the Private Sector Promotion Law clarifies ACFIC's responsibilities, providing both a legal basis and legal safeguards for it to better fulfill its role as a bridge, and to serve the healthy, sustainable and high-quality development of private enterprises.

Publicity and interpretation of the law should be well organized. Its promulgation has generated widespread enthusiasm among private sector entrepreneurs, who widely view this as a historic milestone in the development of the private economy, fully demonstrating the Party and state's attention to and care for the private sector. The ACFIC has 320,000 executive committee members and more than 5 million members, with services covering a broad range of private enterprises. We will step up efforts to promote the rule of law, using the publicity and interpretation of the Private Sector Promotion Law as an opportunity to help private entrepreneurs gain a deeper understanding of its legislative intent. This will actively communicate the Party and the state's policies for promoting private sector development and growth, and help build broad-based support and consensus.

We also need to provide good services for enterprises. The Private Sector Promotion Law proposes a series of long-term measures to promote private sector development, which will provide strong support for the high-quality development of the private sector. We will work with relevant departments to accelerate the rollout of supporting policies and ensure the effective implementation of legal provisions. We will also build a cordial and clean relationship between government and business by establishing and improving communication mechanisms and enhancing service quality. We will continuously empower the production and operations of private enterprises, guiding them in developing new quality productive forces and improving quality, efficiency and market competitiveness. This will continuously expand new opportunities for the high-quality development of private enterprises. We also need to actively participate in political consultation and democratic supervision. We will optimize the business environment evaluation system for private enterprises and collect and report new situations and problems encountered by private enterprises during the law's implementation. We will encourage judicial and law enforcement departments to optimize supporting measures and standardize enforcement methods. This will protect the legitimate rights and interests of private enterprises and entrepreneurs in accordance with the law.

We must also guide law-abiding business operations. The Private Sector Promotion Law promotes the modern governance of private enterprises. We will work with relevant departments to continue implementing the plan to enhance the legal awareness of private entrepreneurs and deepen the development of law-abiding and clean private enterprises. We will support qualified private enterprises in establishing and improving a modern corporate system with distinctive Chinese characteristics, thereby raising their standards in management and operations. We will also guide more private enterprises to actively participate in employment promotion campaigns such as the 10,000 Enterprises Revitalizing 10,000 Villages program and the "Hundred Cities, Thousand Schools, and Ten Thousand Enterprises" initiative while pursuing their own high-quality development. This will encourage them to actively fulfill their social responsibilities.

We also need to build effective chambers of commerce. The Private Sector Promotion Law specifically clarifies the coordinating and self-regulating role of industry associations and chambers of commerce in promoting private economic development. There are more than 56,000 chambers of commerce affiliated with and connected to the ACFIC at all levels. We will actively fulfill our management, guidance and service responsibilities. We will work with legislative bodies to accelerate the formulation of the Industry Association and Chamber of Commerce Law. We will also promote the construction of a modern chamber of commerce system with Chinese characteristics, strengthen Party building within chambers of commerce, and improve chamber service functions. We will guide chambers of commerce to better fulfill their roles in providing information consultation, publicity and training, market expansion, rights protection and dispute resolution. Thank you.

Nanfang Plus:

Private enterprises are a vital driving force in key sectors and areas such as technological innovation, foreign trade exports, consumption promotion and domestic demand expansion. The Private Sector Promotion Law clearly supports private economic organizations' participation in technological innovation and major national strategies. How do financial institutions support these areas, and what policies and measures does the NFRA offer? Thank you.

Cong Lin:

Thank you for your question. I'll take this one. For private enterprises in key sectors and critical areas, we focus on sector-specific policies, providing targeted and professional financial services based on industry characteristics.

In high-tech and emerging industries where private enterprises have excelled in recent years, we will work hard to enhance technology-based financial service models. First, we will promote the combination of investment and financing. We are conducting equity investment pilots for financial asset investment companies to support investment in technology innovation enterprises. Currently, 74 private equity investment funds have been established. Additionally, technology enterprise merger and acquisition loans have been launched in 18 pilot cities to support smooth capital circulation for high-tech enterprises. Second, we will innovate the credit enhancement system. We are promoting the construction of a comprehensive pilot zone for the intellectual property financial ecosystem, optimizing policies related to the registration, evaluation, disposal and compensation of intellectual property to support intellectual property pledge financing. In collaboration with finance departments, we have launched a loan guarantee initiative to support technology innovation, providing dedicated guarantees for loans to small- and medium-sized enterprises that are technology-based, high-tech, and use special and sophisticated technologies. By the end of the first quarter of this year, the loan balance of high-tech enterprises nationwide reached 17.7 trillion yuan ($2.4 trillion), a year-on-year increase of 20%. Additionally, we support the commercialization of scientific and technological advances. We have launched two insurance compensation pilot programs — one for the first sets of major technological equipment and another for the initial application of key new materials. These programs have provided more than 1 trillion yuan in risk coverage.

In the fields of foreign trade and consumption, which are primarily made up of small, medium-sized and micro private enterprises, we have designated the foreign trade sector as a priority for the financing coordination mechanism. We have compiled a comprehensive list of foreign trade enterprises and are giving them priority for financing visits and matchmaking. In addition, we have supported exports with short-term export credit insurance. In the first quarter of this year, the insured amount exceeded $240 billion, with significant increase in industries that play important supporting roles in foreign trade, including electronic information, modern chemicals and complete vehicle engineering machinery. We have developed an innovative cross-border e-commerce insurance model to support new forms of foreign trade. This involves guiding insurance companies to develop specialized guarantee products that provide credit guarantees for domestic procurement by cross-border e-commerce businesses. We have increased credit availability across multiple consumer service sectors, including wholesale and retail, accommodation and catering, cultural tourism, education and training programs, and health and elderly care. These measures aim to support the healthy development of private enterprises throughout the consumer services industry.

To encourage private investment, we have partnered with the NDRC to establish a special financing matchmaking mechanism. This has led to the creation of a list of key private investment projects, which we then shared it with banks, guiding them to independently provide appropriate financing services. Some regions have also implemented effective practices and innovative approaches, such as developing dedicated online matching platforms. These platforms allow banks to access project information and use big data to precisely identify projects that align with their credit policies. This has flipped the traditional dynamic from "projects seeking funds" to "funds seeking projects," significantly streamlining the matchmaking process. Thank you.

Beijing Youth Daily:

We've noticed that the newly issued Private Sector Promotion Law clearly stipulates that judicial and administrative departments should establish communication mechanisms for addressing business-related administrative law enforcement appeals. They should also organize administrative enforcement inspections, strengthen supervision of enforcement activities, and promptly correct improper administrative enforcement actions. What additional measures will judicial and administrative departments take to strengthen enforcement supervision and effectively protect the legitimate rights and interests of private entrepreneurs in accordance with the law? Thank you.

Wang Zhenjiang:

Thanks for your question. I'll take this one. I believe this is a concern for many businesses. Since the 18th CPC National Congress, the CPC Central Committee and the State Council have made a series of decisions and arrangements to strengthen and improve administrative law enforcement, calling for comprehensive promotion of strict, standardized, fair and civilized law enforcement. During the formulation of the Private Sector Promotion Law, we resolutely implemented these decisions and arrangements. Addressing widespread issues such as arbitrary fines, fines, inspections, seizures, illegal cross-regional law enforcement and profit-driven law enforcement, the Private Sector Promotion Law includes clear provisions. It establishes comprehensive mechanisms for handling complaints and reports of illegal administrative enforcement actions, creates communication channels for business-related administrative enforcement appeals, and strengthens supervision of administrative enforcement activities. Looking ahead, the Ministry of Justice will follow the decisions and arrangements of the CPC Central Committee and the State Council, implement the relevant requirements outlined in the private sector promotion law and further standardize administrative law enforcement behavior. Our efforts will focus on several key areas:

First, we will implement the law's requirements by accelerating the development of supporting systems and mechanisms. We will push for the establishment and improvement of mechanisms for handling complaints and reports of illegal administrative enforcement actions, promptly accepting and lawfully addressing business-related administrative enforcement complaints. Judicial administrative organs will set up contact points with businesses to supervise administrative law enforcement, ensuring timely feedback and suggestions from various business entities regarding enterprise-related administrative enforcement activities. We will implement an administrative enforcement supervision system, inviting NPC deputies, CPPCC members, public supervisors, experts, scholars, lawyers and journalists to participate in supervision. We will resolutely curb profit-driven law enforcement and effectively protect the legitimate rights and interests of private economic organizations and their operators in accordance with the law.

Second, we will take the lead in conducting special actions to regulate business-related administrative law enforcement. Last year's Central Economic Work Conference called for launching a special action to regulate business-related law enforcement. On April 25 this year, the meeting of the Political Bureau of the CPC Central Committee again emphasized the need to solidly carry out this special action. As the State Council's administrative law enforcement oversight body, the Ministry of Justice is responsible for coordinating and organizing nationwide special actions to regulate business-related administrative law enforcement. Local judicial and administrative organs at all levels, as supervisory bodies for their respective governments, are responsible for organizing and implementing special actions in their regions. The Ministry of Justice will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council, taking the enactment of the Private Sector Promotion Law as an opportunity to urge all regions and departments to intensify investigation and punishment of administrative law enforcement violations, strengthen problem rectification and ensure correct and thorough resolution of issues. At the same time, we will select key regions, sectors and issues for spot checks and conduct periodic assessments of remediation results. For problems that businesses and the public strongly report, we will elevate handling when necessary and supervise cases where correction efforts are inadequate. We will promptly promote and share effective experiences and practices, while departments that fail to properly address problems may face administrative admonition, official notices and public exposure, depending on the circumstances.

Third, we will accelerate the research and formulation of administrative law enforcement supervision regulations and establish a long-term mechanism for supervising business-related administrative law enforcement. The Ministry of Justice will use the implementation of the Private Sector Promotion Law as an entry point to establish and improve long-term mechanisms for supervising business-related administrative law enforcement. We will expedite research and drafting of administrative law enforcement supervision regulations. In response to common issues in administrative law enforcement, we will further improve the supervision system, procedures and accountability mechanisms. This will provide solid legal guarantees and institutional support for strengthening administrative enforcement oversight, regulating enforcement actions, and protecting all business entities' legitimate rights and interests, including private economic organizations. That is all from me. Thank you.

Tide News under Zhejiang Daily:

We understand that private businesses are very concerned about market access issues. Does the Private Sector Promotion Law respond to their concerns? What specific measures will the NDRC take? Thank you.

Zheng Bei:

Thank you. That's an excellent question. During our research and communications with private enterprises, we also learned that they are very concerned about this issue. The Private Sector Promotion Law is guided throughout by principles of equal treatment, fair competition, equal protection and mutual development. These principles are fully reflected not only in the general provisions but also in the chapters covering fair competition, investment and financing promotion, technological innovation and legal liabilities. To implement the law's requirements, the NDRC will work with relevant departments to strengthen measures in three key areas: breaking down barriers, expanding the scope of development and optimizing services.

The first priority is eliminating barriers to market access. Recently, we worked with other departments to issue a shorter negative list for market access. We've launched rectification actions to remove market access barriers, which will continue regularly after six months of centralized rectification. We've also actively promoted the fair participation of private enterprises in bidding processes. From January to April this year, private enterprises increased their winning rate by 5 percentage points year on year. For projects under 100 million yuan, private enterprises won more than 80% of the contracts. Moving forward, if private enterprises encounter access barriers, they can report issues through the dedicated section on our commission's website for the unified national market initiative. We will work with relevant departments to promptly verify and address these concerns.

The second priority is expanding the scope of development. We are supporting private enterprises in implementing major national strategies and building security capacity in key areas. This includes participation in large-scale equipment upgrades and consumer goods trade-in programs. We're creating better long-term mechanisms for private enterprises to join major national projects. Several major projects in nuclear power and railways have already been launched. In some nuclear power projects, private capital now holds up to 20% of shares. In industrial equipment renewal and recycling, over 80% of funds support private enterprises. This year, we'll launch high-quality projects worth approximately 3 trillion yuan in key areas such as transportation, energy, water conservancy, new infrastructure and urban infrastructure. We will vigorously support private enterprises as they invest in emerging and future industries. We'll help them lead national initiatives to make breakthroughs in key technologies, ensure they have equal access to major national scientific research infrastructure and industrial technology platforms, and encourage their participation in developing innovative applications for new technologies and products. We hope private enterprises and entrepreneurs will seize these opportunities and have the courage to succeed.

The third priority is to optimize service guarantees. We will continue to strengthen project services, release information on major project encouraging private sector investment, and provide standardized, efficient and convenient services for project introductions, preliminary work and approval processes. This will help private enterprises better understand "where to invest and how to invest." We will continue to strengthen resource guarantees and improve mechanisms for ensuring private investment has access to land, environmental assessments and funding. We'll help private firms attract top talent through better incentives and services. We'll also support their participation in the emerging data market and standards development. Additionally, we'll enhance intellectual property protections, improve the social credit system, and develop a better credit repair system, helping private enterprises unleash their innovative potential. Thank you.

China News Service:

The Private Sector Promotion Law has a total of nine chapters and 78 articles with wide-ranging provisions. From the state legislature's perspective, what are this law's outstanding features? Thank you.

Wang Ruihe:

The Private Sector Promotion Law is a specialized standalone law on the development of the private sector. From the perspective of actively building a socialist market economy legal system with Chinese characteristics, it represents an important legislative achievement. As the reporter mentioned, the content is extensive, and relevant departments have conducted publicity campaigns both before and after the law's introduction. The Private Sector Promotion Law, for the first time, stipulates that we will work unwaveringly to both consolidate and develop the public sector and to encourage, support and guide the development of the non-public sector. It promotes the sound development of the private sector and persons in the sector. The law also establishes the status of the private sector for the first time and stipulates that promoting the sustainable, sound and high-quality development of the private sector is a crucial principle and policy that the state has long upheld.

As a law designed to promote and protect, the Private Sector Promotion Law is highly policy-oriented and principled in nature. In terms of content, it can be summarized by four key features:

First, it emphasizes ideological guidance. The Private Sector Promotion Law is guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implements Xi Jinping Thought on the Economy and Xi Jinping Thought on the Rule of Law. It stipulates that efforts to promote the development of the private sector must uphold the leadership of the CPC, follow a people-centered approach, and adhere to the socialist system with Chinese characteristics. These measures are intended to ensure the correct political direction for the development of the private economy.

Second, it upholds equal treatment. The Private Sector Promotion Law emphasizes equal treatment, fair competition, equal protection and common development to support the growth of the private sector. It ensures that private businesses, along with all other types of economic organizations and market entities, enjoy equal legal status under the law. Our rough count found that the terms "equality," "fairness" and "equal treatment" appear 26 times throughout the law's text, reflecting how the principle of equality is woven into every aspect of efforts to promote the development of the private sector.

Third, it strengthens legal protections. The Private Sector Promotion Law calls for strict, standardized, just and civilized law enforcement. It strengthens protections for the legal rights and interests of private businesses and their operators. The law also encourages, supports and guides the development of the private economy in accordance with the law. The law reinforces legal protections by laying a solid foundation, stabilizing expectations and ensuring long-term benefits.

Fourth, it emphasizes a problem-oriented approach. The Private Sector Promotion Law addresses major issues and shortcomings in the development of the private economy by fully incorporating the results of reforms and practical experience. It refines and improves relevant systems and measures in a targeted way, aims to maximize the decisive role of the market in resource allocation, and seeks to better utilize the role of government. Thank you.

Xing Huina:

Please feel free to raise your hand if you have any questions. We have time for two more questions from reporters.

Xinhua Finance:

Article 4 of the Private Sector Promotion Law stipulates that the NDRC is responsible for coordinating and overseeing efforts to promote the development of the private economy. I have a question for the NDRC. What steps will be taken next to ensure the effective implementation of the Private Sector Promotion Law? Thank you.

Zheng Bei:

Thank you for your question. The effectiveness of a law depends on its implementation, and private businesses have high hopes for the successful implementation of this law. The NDRC will take an active role in coordinating and planning, working with various departments and local governments to ensure the effective implementation of the law. Efforts will focus on three key areas.

First, we will focus on supporting infrastructure development. During the legislative process, following the guidance of the CPC Central Committee and the State Council, we worked with relevant departments to plan ahead and simultaneously carry out the formulation, revision, repeal and interpretation of related regulations. Several supporting systems and mechanisms have already been introduced, including the market access negative list, regulations to ensure payment for small- and medium-sized enterprises, rules for fair competition review and their implementation measures, guidance on improving the social credit system and a long-term supervision mechanism for enterprise-related fees. Several other measures are being fast-tracked, covering areas such as investment and financing, technological innovation, service support and the protection of rights and interests. At the same time, many local governments, based on their specific circumstances, are actively improving the relevant supporting measures.

Second, we will prioritize effective implementation. We will work closely with relevant departments to fully implement the law and strengthen its binding enforcement. Our efforts will focus on five key areas. First, we will remove obstacles and address issues related to market access and resource acquisition. Second, we will tackle arrears and resolve payment issues for private enterprises. Third, we will provide legal protection for legitimate rights and interests, addressing business development concerns. Fourth, we will implement relief policies to help businesses feel a greater sense of benefit. Finally, we will strengthen communication between the government and enterprises to better respond to reasonable business demands. At the same time, during the law's implementation, we will focus on gathering feedback and suggestions from all parties. We will continuously improve related systems and mechanisms, striving to create a favorable legal environment that supports the healthy development of the private economy.

Third, we will focus on education and public awareness. We will work closely with relevant departments and local governments to thoroughly study the law's contents, gain a deeper understanding of its principles, and apply rule-of-law thinking and methods more consciously to advance the development of the private sector. We will strengthen publicity campaigns for the law to help private enterprises understand and make effective use of it, protect their legitimate rights and interests, and expand their development opportunities. Our goal is to help businesses enhance their core competitiveness and make significant contributions to Chinese modernization. We will promote understanding and compliance with the law across all sectors of society, building consensus and pooling efforts to advance the high-quality development of the private sector.

Turning the law into a powerful driving force for private sector development will require our collective effort and sustained commitment. We hope that all sectors of society will continue to support and pay close attention to the development of the private sector. We welcome any opinions or suggestions regarding the implementation of the law and encourage everyone to share their feedback with us promptly. Thank you.

Xing Huina:

We'll have one last question.

Red Star News:

My question is for the NFRA. Financing for private enterprises is a topic of strong public interest. The CPC Central Committee and the State Council have made dedicated arrangements to enhance financial support for the development of the private economy. The Private Sector Promotion Law outlines multiple provisions on this issue in its chapter on "investment and financing promotion." What measures has the NFRA taken to implement these policies? Thank you.

Cong Lin:

Thank you for your question. The NFRA resolutely implements the decisions and plans of the CPC Central Committee and the State Council, guiding and urging financial institutions to continuously strengthen their support for private enterprises and improve the quality of their services. As you just mentioned, Chapter 3 of the Private Sector Promotion Law specifically addresses the promotion of investment and financing. These provisions are not only a high-level summary of long-standing financial policies and practices, but also provide clear direction and tasks for our next steps. In line with the provisions of the law, I would like to introduce several key areas of work that we are focusing on:

First, we are continuously optimizing credit supply policies. For the majority of private enterprises, which are small and micro enterprises, we have developed a series of differentiated regulatory policies. For example, in terms of capital regulation, we have offered a discount on risk-weighted capital requirements for loans to small and micro enterprises, ranging from 15% to 25%. In terms of tolerance for non-performing loans, we have relaxed the acceptable non-performing loan ratio for inclusive small and micro enterprise loans to up to 3 percentage points higher than the overall non-performing loan ratio, in order to boost banks' willingness to lend. To address the issue of frontline staff being hesitant to issue loans, we have introduced an accountability exemption mechanism for inclusive credit lending, which protects responsible personnel who act in good faith during the loan approval process. At the same time, we urge banks to set specific targets every year for serving private enterprises, ensuring strong credit allocation. Here, I would like to share some figures with the press. Loans to private enterprises have been steadily increasing, with an average annual growth rate over the past five years that is 1.1 percentage points higher than the overall average loan growth rate. As of the end of the first quarter of 2025, the outstanding loan balance for private enterprises stood at 76.07 trillion yuan, representing a year-on-year increase of 7.41%. The outstanding balance of inclusive loans to small and micro enterprises was 35.3 trillion yuan, up 12.5% year on year. We have also introduced a policy of loan renewal without principal repayment to help reduce the financing turnover costs for enterprises. As of the end of the first quarter, the outstanding balance of renewed loans reached 7.4 trillion yuan, marking a year-on-year increase of 35.7%.

Second, we are guiding the development of an innovative insurance product and service system. We are developing specialized insurance products and optimizing services to meet the needs of private enterprises in areas such as disaster risk mitigation and loss recovery, human resources and employment, and research and development. For example, in the high-tech sector, we are launching pilot programs for mechanisms to disperse major technological breakthroughs, cybersecurity insurance, and drone insurance. For private enterprises that rely heavily on new urban residents and flexible employment groups, we focus on their specific occupational risks and strengthen protection through inclusive insurance products. In the new energy vehicle (NEV) industry, where private enterprises make up the majority, we have guided the insurance sector to introduce exclusive insurance terms and rates, and established a new insurance platform, ensuring full coverage for those who wish to be insured and guaranteed coverage for all applicants.

Third, we are collaborating to establish an information integration and sharing mechanism. Offline, we have established a coordination mechanism with the NDRC to support financing for small and micro enterprises. This mechanism promotes the direct, fast and convenient flow of credit funds to grassroots enterprises at appropriate interest rates. Through this mechanism, we have issued new loans totaling 12.6 trillion yuan to small and micro enterprises, with an average interest rate of 3.66%. Online, we are promoting the establishment of credit information sharing and comprehensive financial service platforms in multiple regions, aiming to "make data travel more while businesses and banks travel less," thereby supporting banks in issuing credit loans through data and information. As of the end of the first quarter, the outstanding balance of credit loans to private enterprises reached 18.1 trillion yuan, a year-on-year increase of 15.4%.

Fourth, we are strengthening the risk-sharing function of financing guarantees. In collaboration with the finance department, we have promoted the establishment of a nationwide government financing guarantee system, with serving small and micro enterprises as the main policy effectiveness indicator. The guarantee fee rate for this type of business is capped at 1%, significantly lower than the level of commercial guarantee. As of the end of the first quarter, government financing guarantee institutions had provided direct financing guarantees totaling 1.88 trillion yuan for small and micro enterprises, marking a year-on-year increase of 11.5%.

Next, we will consistently uphold the "two unwavering commitments" and focus on the implementation of the Private Sector Promotion Law. We will continue making efforts in areas such as regulatory guidance, policy incentives, mechanism promotion and institutional guarantees, and implement targeted measures for private enterprises of different industries, sizes and development stages. We will work together with relevant parties to pool efforts and jointly promote the financial industry in providing more efficient, convenient and sustainable financial services for the private economy. Thank you.

Xing Huina:

Today's press conference is hereby concluded. Thank you to our speakers and the media for your participation. Goodbye.

Translated and edited by Liu Jianing, Gong Yingchun, Li Xiao, Yan Bin, Xu Kailin, Zhang Rui, Wang Xingguang, Wang Wei, Fan Junmei, Liu Qiang, Li Huiru, Wang Qian, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

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

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

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

Chairperson:

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

Date:

May 7, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are glad to have invited Mr. Pan Gongsheng, governor of the People's Bank of China (PBC); Mr. Li Yunze, minister of the National Financial Regulatory Administration (NFRA); and Mr. Wu Qing, chairman of the China Securities Regulatory Commission (CSRC). They will brief you on the financial policy package to stabilize the market and expectations, and answer your questions.

Now, let's give the floor to Mr. Pan for his introduction.

Pan Gongsheng:

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

Since the beginning of this year, the PBC has earnestly implemented the guiding principles of the Central Economic Work Conference and the deployments of the Government Work Report. We have implemented a moderately loose monetary policy, strengthened counter-cyclical adjustments, comprehensively used various monetary policy tools, served the high-quality development of the real economy, and created a favorable monetary and financial environment for promoting the continuous recovery and improvement of the economy.

From the perspective of effectiveness, various macro-financial data has been relatively positive since the beginning of this year, and monetary credit has shown the operational characteristics of "increased quantity, decreased price and optimized structure." At the end of the first quarter, the social financing scale increased by 8.4% year on year, and loans increased by 7.4% year on year. If adjusted to include the impact of local special-purpose bonds that replaced loans from local government financing platforms, the loan growth rate would exceed 8%. The M2, a broad measure of money supply, maintained stable growth of around 7%, significantly higher than the nominal economic growth rate. At the same time, the cost of social financing remained low, and the growth rates of inclusive loans to micro and small businesses, medium- and long-term loans to the manufacturing sector, and loans to sci-tech small and medium enterprises (SMEs) were all faster than the overall loan growth rate, further optimizing the credit structure.

From the perspective of the financial market, the performance in the first quarter was positive. The stock market operated generally smoothly, trading was relatively active, and the Shanghai Composite Index remained around 3,300 points. The bond market self-corrected, driven by improved economic confidence. The onshore and offshore RMB exchange rates against the U.S. dollar appreciated slightly by about 1% compared to the end of last year, and cross-border capital flows were relatively balanced.

Since April, despite facing relatively large external shocks, the domestic financial system has remained stable, and the financial market has shown strong resilience. After the Shanghai Composite Index fell on April 7, it quickly rebounded and stabilized. Currently, the 10-year government bond yield is hovering around 1.65%, and the RMB exchange rate against the U.S. dollar depreciated slightly before rebounding to around 7.2 yuan.

Currently, the global economy is full of uncertainties. Economic fragmentation and trade tensions are intensifying, disrupting global industrial and supply chains, causing turmoil in international financial markets, and weakening global economic growth momentum. Not long ago, I attended the Spring Meetings of the World Bank Group and the International Monetary Fund (IMF) in Washington, where central bank governors and heads of international financial organizations from various countries expressed deep concern about this. The PBC will conscientiously implement the central decisions and deployments, promote high-quality economic development, unswervingly advance high-standard opening up, actively participate in international financial governance and cooperation, and maintain a rules-based international economic and financial order. At the same time, we will coordinate financial opening and security, explore and enhance the central bank's role of macro-prudential management and financial stability regime, and firmly maintain the stable operation of China's foreign exchange, bond and stock markets.

On April 25, the Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting to analyze and study the current economic situation and economic work. In order to implement the guiding principles of the meeting and further implement a moderately loose monetary policy, the PBC will intensify macro regulation and introduce a package of monetary policy measures, mainly consisting of three major categories with a total of 10 specific measures.

The first category is quantitative policies, aimed at increasing medium- and long-term liquidity supply, through measures such as lowering the reserve requirement ratio, and maintaining ample market liquidity. The second category is price-based policies, which will lower policy rate, reduce the rates of structural monetary policy tools, such as the central bank's relending rates to commercial banks, and lower interest rates on provident fund loans. The third category is structural policies, which will improve existing structural monetary policy tools and create new policy tools to support such areas as technological innovation, consumption expansion and inclusive finance.

These three major categories of measures include 10 specific policies:

First, we will lower the reserve requirement ratio (RRR) by 0.5 percentage point, which is expected to provide about 1 trillion yuan in long-term liquidity to the market.

Second, we will improve the reserve requirement system by temporarily lowering the reserve requirement ratio for auto finance companies and financial leasing companies from the current 5% to 0%. 

Third, we will lower the policy rate by 0.1 percentage point, specifically reducing the seven-day reverse repo rate in the open market from the current 1.5% to 1.4%. This adjustment is expected to lead to a corresponding decrease of approximately 0.1 percentage point in the loan prime rate (LPR).

Fourth, we will reduce the interest rates of structural monetary policy tools by 0.25 percentage point. This includes various special structural tools and relending rates for supporting agriculture and small businesses, all decreasing from the current 1.75% to 1.5%. These rates represent the cost at which the central bank provides relending funds to commercial banks. The interest rates on pledged supplementary lending (PSL) will be reduced from the current 2.25% to 2%. PSL is a tool through which the central bank provides funds to policy banks.

Fifth, we will lower the interest rates on personal housing provident fund loans by 0.25 percentage point, reducing the rate for first-time homebuyers with loan terms over five years from 2.85% to 2.6%, with rates for other terms adjusted accordingly.

Sixth, we will increase the relending quota for technological innovation and technological transformation by 300 billion yuan. This will raise the total from the current 500 billion yuan to 800 billion yuan. This relending tool is already in place, and the quota has now been increased by 300 billion yuan, bringing the total to 800 billion yuan. The tool will continue to support the "two new" policies, which refer to large-scale renewal of equipment and the trading-in of consumer goods.

Seventh, we will establish a 500 billion yuan relending facility dedicated to service consumption and elderly care. This measure aims to encourage commercial banks to increase credit support for these sectors.

Eighth, we will increase the relending quota for agricultural and small businesses by 300 billion yuan. This complements our relending rate reduction, helping banks expand lending to agricultural enterprises, small and micro businesses, and private enterprises.

Ninth, we will optimize the two monetary policy tools that support the capital market. We're merging the 500 billion yuan swap facility for securities firms, funds, and insurance companies with the 300 billion yuan relending facility for stock repurchases and increased holdings, resulting in a total quota of 800 billion yuan.

Tenth, we will establish a risk-sharing tool for sci-tech innovation bonds. The central bank will provide low-cost relending funds that can be used to purchase these bonds. The central bank will collaborate with local governments and market-based credit enhancement institutions, utilizing diverse credit enhancement measures, such as joint guarantees, to share part of the default risk. This initiative aims to support the issuance of low-cost, long-term sci-tech innovation bonds for technology innovation enterprises and equity investment institutions.

These 10 specific policy measures across three major categories will be gradually disclosed on the PBC's website and implemented. Next, the PBC will continue to earnestly implement the various deployments of the CPC Central Committee and the State Council, implement a moderately loose monetary policy, and continuously adjust monetary policy based on domestic and international economic and financial conditions, as well as the operation of financial markets. We will also strengthen coordination with fiscal policy to promote high-quality economic development. Thank you.

Shou Xiaoli:

Thank you, Mr. Pan. Now, let's give the floor to Mr. Li.

Li Yunze:

Good morning. I'm very pleased to meet with you again and answer your questions. First, on behalf of the NFRA, I would like to extend my sincere gratitude to the media for your long-standing support for and attention to our financial regulatory work.

Since the beginning of this year, the NFRA has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council. Moreover, we've carefully followed the guidance from the April 25 meeting of the Political Bureau of the CPC Central Committee. We've strengthened our bottom-line thinking and expanded our policy measures. We've actively responded to external shocks and made solid progress in risk prevention, regulatory enforcement, and development promotion.

First, the overall performance of the financial sector remains stable. Currently, banking and insurance institutions are conducting all business activities in an orderly manner, with major regulatory indicators all within healthy ranges. Large financial institutions maintain a solid foundation, clearly serving as an anchor of stability for the financial system. Small- and medium-sized financial institutions have shown significant progress in both reform and risk reduction efforts. In the first four months, the capital adequacy ratio of banks and the solvency adequacy ratio of insurance companies maintained a steady upward trend. The non-performing loan ratio declined by approximately 0.1 percentage point year on year, while the provision coverage ratio increased by around 10 percentage points over the previous year. It can be said that the financial industry's safety buffer continues to strengthen.

Second, we're seeing the ongoing positive impact of our regulatory policies. We've strengthened the leading role of regulation and accelerated the improvement of regulatory frameworks. We've also revised and issued over 30 systems, including those related to corporate governance, regulatory ratings and consumer protection. We have formulated opinions on high-quality development in sectors such as banking, insurance and asset management, aiming to enhance specialized and professional development capabilities. We are guiding the industry to further advance cost reduction and efficiency improvement, thereby strengthening the foundation for sustainable development. We are improving the capital replenishment mechanism. Capital reinforcement for large commercial banks is accelerating, while enhancement plans for major insurance groups have been placed on the agenda. Meanwhile, local governments are also replenishing the capital of small- and medium-sized financial institutions through multiple channels in an orderly manner. These measures will further strengthen the resilience of the financial system and its capacity to support high-quality development.

Third, the quality and efficiency of services have been significantly improved. We have developed specialized implementation plans for technology finance, green finance, pension finance and inclusive finance. We've issued multiple financial policies to bolster consumption and foreign trade. In addition, we are increasing support for major national strategies, enhancing security capacity in key areas, promoting consumer goods trade-ins and encouraging large-scale equipment renewals. We have also strengthened efforts to safeguard people's livelihoods. In the first four months of this year, the banking and insurance sectors provided about 17 trillion yuan in new financing to the real economy through loans, bonds and other means. Since the expansion of the loan renewal without principal repayment policy in September last year, 4.4 trillion yuan in loans have been renewed for medium, small and micro enterprises, better meeting their ongoing financing needs. The insured amount by short-term export credit insurance rose 15.3% year on year, providing strong support for stabilizing foreign trade. From January to April this year, the insurance industry paid out about 1 trillion yuan in claims, and more than 10 million vehicles were covered by the new energy vehicle insurance. At the same time, insurance companies set aside more than 10 trillion yuan in long-term reserve funds for endowment and health insurance payments.

Next, we will follow the requirements of the CPC Central Committee and the State Council, further strengthening our sense of responsibility, urgency and initiative in ensuring implementation. We will intensify efforts to implement established policies, accelerate the preparation of incremental policies, continuously improve our response plans, and work to firmly consolidate the fundamentals of economic recovery and growth. In the near future, we will introduce the following eight incremental policies.

First, we plan to accelerate the rollout of financing systems compatible with the new model of real estate development. This will help further stabilize the real estate market.

Second, we plan to expand the scope of pilot projects for the long-term investment of insurance funds to bring more incremental funds into the market.

Third, we plan to adjust and improve regulatory rules to further lower the risk factors for insurance companies' stock investments, helping to stabilize and revitalize the capital market.

Fourth, we'll launch a package of policies to support financing for small and micro businesses and private enterprises as soon as possible. We'll deepen and solidify financing coordination mechanisms to help stabilize businesses and the broader economy.

Fifth, we will formulate and implement a series of policy measures in the banking and insurance sectors to support the development of foreign trade. We will provide targeted services to business entities most affected by tariffs and make every effort to help them maintain stable operations and expand markets.

Sixth, we plan to revise and issue regulatory measures on merger and acquisition (M&A) loans to promote the accelerated transformation and upgrading of industries.

Seventh, we plan to expand the range of eligible entities allowed to establish financial asset investment companies to include qualified commercial banks with nationwide business networks. This will help boost investment in sci-tech innovation enterprises.

Eighth, we will develop guidelines for the high-quality development of technology insurance to improve its risk sharing and compensation roles, and to provide strong support for technological innovation. Thank you.

Shou Xiaoli:

Thank you, Mr. Li, for your introduction. Now, I will give the floor to Mr. Wu.

Wu Qing:

Ladies and gentlemen, members of the media, good morning! First, thank you all for your long-term attention to and support of the capital market and the work of the CSRC. Since the beginning of this year, the CSRC has thoroughly implemented a series of decisions and deployments by the CPC Central Committee and the State Council, continuously advancing the implementation and effectiveness of the latest Nine-Point Guideline and related policies on the sound development of the capital market. As a result, the market has generally remained stable while making steady progress and showing positive momentum. Since early April, the U.S. government's tariff policy has severely impacted the international economic and trade order, causing volatility in global financial markets and putting considerable pressure on China's capital market. To meet this sudden and severe challenge, we, guided by the strong leadership of the CPC Central Committee and the State Council and following the coordination from the Office of the Central Financial Commission, cooperated with relevant departments, took swift action and implemented a comprehensive package of market-stabilizing measures, including policy support, capital interventions, and efforts to guide market expectations. The PBC, the NFRA, the State-owned Assets Supervision and Administration Commission of the State Council, and the State Administration of Foreign Exchange all sent strong policy signals. Central Huijin Investment took decisive actions. The National Council for Social Security Fund, along with securities and fund management institutions, banks, insurers and various investors, showed confidence and made positive efforts. Many listed companies helped stabilize stock prices through measures such as share buybacks and increasing their own holdings. As the saying goes, "When everyone adds wood to the fire, flame runs high; when we face challenges together, we can weather any storm." Thanks to the collective efforts of investors and other market participants, the A-share market continuously rebounded following a day of significant volatility. The market then stabilized and showed positive signs, demonstrating strong resilience and the ability to withstand risks.

The April 25 meeting of the Political Bureau of the CPC Central Committee emphasized the need to continuously stabilize and invigorate the capital market, fully reflecting the CPC Central Committee's high regard for stabilizing market performance and expectations as well as its high hopes for future development. We will make every effort to implement this directive, and continue to carry out the measures set forth in the four documents issued by the CSRC in March 2024 concerning the regulation of listed companies, securities firms and public offering funds, the establishment of first-rate investment banks and institutions, the improvements to the CSRC system, among other things, to ensure the sound development of the capital market. We are committed to fulfilling our responsibilities by stabilizing the market, boosting market vitality and enhancing market functions.

First, we will make every effort to strengthen and sustain the momentum of market stabilization and improvement. We will strengthen market monitoring and conduct comprehensive risk assessments, adjusting contingency plans as needed to respond to various external risks and impacts. We will fully support Central Huijin Investment in playing its role as a quasi-stabilization fund, with its effective operations in the market being backed by policies issued by the PBC. This approach is among the most robust in the world. We will work with the PBC to improve the long-term mechanism of monetary policy tools that support the capital market and further enhance the stabilizing role of all market participants.

Second, we will emphasize the important focus of serving the development of new quality productive forces. We're focusing on several key initiatives: We'll soon introduce policies and measures to deepen reforms of the Science and Technology Innovation Board (STAR Market) and ChiNext board, which we'll announce at an appropriate time. These reforms will enhance the inclusiveness and adaptability of our systems in terms of market tiers, review mechanisms and investor protections. We're also working to apply best practices from exemplary cases as quickly as possible. We'll soon release the newly revised Administration Measures for Significant Asset Restructuring of Listed Companies, along with related regulatory guidelines. These updates will enhance the capital market's role as the primary channel for mergers, acquisitions and corporate restructuring. We're actively developing sci-tech innovation bonds, optimizing the issuance and registration process, and enhancing credit support mechanisms. This will provide sci-tech enterprises with comprehensive financial services throughout their development journey.

Third, we're working to attract more medium- and long-term funds into the capital market. We'll guide listed companies to improve governance, enhance performance, and continuously increase investor returns. At the same time, we're intensifying efforts to attract long-term funds and working with all parties to expand both the volume and proportion of diverse medium- and long-term funds in the market. Today, we're releasing the Action Plan for Promoting the High-Quality Development of Public Funds. This plan better aligns the interests of managers and investors, creating shared success and mutual benefits. We're aiming to create a virtuous cycle where better investment returns attract more capital, which then leads to greater market stability.

The stability of the stock market affects the broader economic and social environment, as well as the immediate interests of hundreds of millions of investors. At present, China's economy continues to recover and gain momentum. All relevant authorities have made thorough preparations to respond to external shocks. This not only adds greater certainty to a global economy fraught with uncertainty, but also creates a solid foundation and favorable conditions for the stable operation of China's capital market. Our confidence in the capital market stems from four aspects: First, the strong leadership of the CPC Central Committee and the State Council, and their firm determination and effective arrangements to maintain market stability. As everyone can see, these are concrete actions producing tangible results. Second, the implementation of the "1+N" policy framework in the capital market has driven positive and profound changes in the market's internal structure, and a balanced investment and financing ecosystem is taking shape at an accelerated pace. Third, the technology sector in the A-share market is developing a clearer narrative and stronger clustering effect. As high-quality economic development continues, the potential of new quality productive forces will become increasingly apparent. The deep integration of technological and industrial innovation will inject valuable new vitality into the capital market. Fourth, by industry standards, the A-share market's valuation remains at a relatively low level. The price-to-earnings ratio of the CSI 300Index is only 12.3. Major Chinese market indices trade at significantly lower multiples than global benchmarks like the S&P 500. In light of significantly increasing instability in the global market, Chinese assets continue to increase in allocation value and attractiveness. Simply put, we have reliable economic growth, sound macroeconomic policies and strong institutional guarantees. These factors inject greater certainty into our economy and capital market amid an uncertain global environment.

In short, encountering wind and rain on the way forward is normal. Whether we face gentle breezes or violent storms, choppy waters or massive waves, we have all the necessary conditions, confidence and capabilities needed to ensure China's stock market develops in a stable and healthy manner. Thank you.

Shou Xiaoli:

Thank you, Mr. Wu. The floor is now open for questions. Please identify your media organization before asking your question.

CCTV:

Mr. Pan mentioned plans to lower both the reserve requirement ratio and policy rates, generating significant interest. Could you please provide more details about these measures? Thank you.

Pan Gongsheng:

Thank you for your question. Everyone is closely monitoring potential adjustments to key monetary policy instruments, particularly policy rates and reserve requirement ratios. Both the Central Economic Work Conference last December and this year's government work report called for implementing a moderately loose monetary policy, including timely cuts to both reserve ratio requirements and interest rates. A moderately loose monetary policy has several core elements. First, it maintains ample liquidity and relatively favorable financing conditions, including reasonable growth in macro financial metrics like aggregate financing and the M2 money supply, along with relatively low overall financing costs. Second, policy implementation must be flexible, with adjustments made as needed. We must comprehensively assess domestic and international economic and financial conditions, as well as financial market operations, and use various monetary policy tools to make dynamic adjustments. Third, the orientation of monetary policy refers to its overall stance. In recent years, the PBC has repeatedly lowered the reserve requirement ratio and interest rates, keeping monetary policy supportive and overall liquidity relatively ample.

Let me elaborate on the adjustments to the aggregate monetary policy measures I just announced.

First, we will lower the reserve requirement ratio (RRR). This time, we will lower the RRR by 0.5 percentage point, providing approximately 1 trillion yuan in long-term liquidity to the financial markets. By lowering the RRR, the PBC can optimize the structure of liquidity provision to the banking system, reduce banks' cost of liabilities and enhance the stability of their liabilities. At the same time, we will temporarily reduce the RRR for auto finance companies and financial leasing companies from the current 5% to 0%. These two types of institutions provide direct financial support to areas such as automobile consumption and equipment upgrade investments. Lowering their RRR will effectively enhance their ability to supply credit to specific sectors.

Second, regarding interest rate cuts, we'll implement three changes: First, we'll lower the policy rate by 0.1 percentage point. In our central bank's framework, the policy rate refers to the seven-day reverse repo rate in open market operations. It currently stands at 1.5% and will be lowered to 1.4%. Through market-based interest rate transmission, we expect this will lead to a corresponding 0.1 percentage point reduction in the LPR. At the same time, we will guide commercial banks to lower deposit interest rates accordingly through the self-regulatory mechanism for interest rates. Second, we will reduce interest rates on all structural monetary policy tools by 0.25 percentage point. Structural monetary policy tools generally refer to loans provided by the central bank to commercial banks. This move is expected to save banks approximately 15-20 billion yuan in funding costs annually, encouraging banks to strengthen their support for economic structural transformation. Third, we will reduce the interest rate on personal housing provident fund loans by 0.25 percentage point. For first-home loans with terms over five years, the rate will be cut from 2.85% to 2.6%, with rates for other loan terms adjusted accordingly. This is expected to save residents more than 20 billion yuan annually in provident fund loan interest payments, helping to support essential housing needs and stabilize the real estate market.

Meanwhile, the PBC will further improve its monetary policy framework, strengthen the implementation and supervision of interest rate policies, and enhance regulation of unreasonable market behaviors that might impede monetary policy transmission. This will help ensure smooth monetary policy transmission mechanisms and improve resource allocation efficiency.

These policy measures will provide financial institutions with a substantial amount of low-cost medium- and long-term funds, helping to reduce their debt costs and stabilize net interest margins. The policy effects will further translate to the real economy, leading to steady and potentially lower overall social financing costs, boosting market confidence, and effectively supporting stable growth in the real economy. Thank you.

21st Century Business Herald:

Mr. Wu, what impact might the additional tariffs have on the production and operations of A-share listed companies? How will the CSRC support listed companies in responding to this situation?

Wu Qing:

Thank you for your questions. Regarding the impact of additional U.S. tariffs, many A-share listed companies have recently provided disclosures through announcements and earnings calls. Overall, the U.S.'s excessive use of tariffs has severely disrupted the global economic and trade order. Listed companies' operations will inevitably face direct or indirect impacts, some larger, some smaller. Companies with a higher proportion of exports to the U.S. will be more significantly affected. General Secretary Xi Jinping has noted that "China's economy is not a pond, but an ocean." A-share listed companies, as representatives of China's outstanding business community, possess strong resilience and adaptability. First, China's massive domestic market and untapped consumer potential are the greatest sources of confidence. Nearly 90% of A-share listed companies' revenue comes from the domestic market. The stable and improving fundamentals of the Chinese economy, with its long-term positive outlook, ensure that listed companies will continue to see steady performance growth. In 2024, three-quarters of listed companies were profitable and half showed profit growth. Notably, as artificial intelligence leads the technology industry wave, related sectors like semiconductors and consumer electronics have seen net profit increases of 13.2% and 12.9% year on year, respectively. Meanwhile, we've seen market-wide dividends and share buybacks reaching historic highs, with the CSI 300 index dividend yield reaching 3.6%. Looking at quarterly reports, listed companies' net profits increased 3.6% year on year in the first quarter of this year. Among them, listed companies in the real economy saw net profits rise 4.3% year on year. Second, significant progress has been made in building diversified export markets. Since the U.S. imposed additional tariffs on China in 2018, A-share listed companies have gradually adjusted and improved their overseas production capacity arrangements. Those with the necessary conditions have been making adjustments and further exploring new markets. Export revenue grew from 4.9 trillion yuan in 2018 to 9.4 trillion yuan in 2024, an increase of 92%, nearly doubling. Meanwhile, direct exports to the U.S. now make up a much smaller portion of total revenue, with 91% of companies reporting that U.S. exports account for less than 10% of their sales. Third, export competitiveness continues to improve. "Made in China" has become deeply integrated into global industrial and supply chains. A-share listed companies possess strong competitive advantages in consistent product quality, economies of scale in production, and technological innovation. Since April 7 — less than a month ago — nearly 350 listed companies have announced share buyback and stake increase plans, reflecting their strong confidence in their own value and development prospects.

Listed companies are an important part of China's economy and the cornerstone of the capital market. Moving forward, the CSRC will continue to promote the functions of the capital market. While strengthening supervision, we will also strive to provide supportive and considerate oversight, doing our best to help affected enterprises cope with the impact of increased U.S. tariffs. First, we will intensify outreach and assistance efforts. From last year to the end of March this year, the CSRC, together with local governments, visited 2,352 listed companies and helped resolve over 3,300 key challenges and difficulties faced by these enterprises. The commission will continue to work with relevant parties to advance this effort. Second, we will optimize regulatory arrangements. For listed companies significantly affected by tariff policies, we will adopt a more flexible regulatory approach regarding equity pledges, refinancing and the use of raised funds, in order to help address their difficulties and provide relief. We will further improve rules regarding exemptions from information disclosure and continue to guide listed companies in strengthening effective communication with investors. Third, we will support transformation and upgrading, especially by encouraging listed companies to achieve this through M&A activity. Since the release of the Opinions on Deepening the Reform of the M&A and Restructuring Market for Listed Companies last year, nearly 1,400 restructuring projects have been disclosed in the Shanghai and Shenzhen stock markets, up 40% year on year. Of these, more than 160 were major asset restructurings, marking a 2.4-fold increase from the previous year. We are currently accelerating the revision of the Administration Measures for Significant Asset Restructuring of Listed Companies and related regulatory guidelines. This includes further improving the supporting measures for the Opinions on Deepening the Reform of the M&A and Restructuring Market for Listed Companies to more strongly support mergers and acquisitions by listed companies. Following industrial logic, we aim to strengthen companies' core capabilities, stimulate vitality, enhance quality—while continuously building greater innovation capacity and risk resilience. Fourth, we will strengthen support by leveraging multi-level capital market products and services. We support listed companies in utilizing various tools such as stocks, bonds and REITs for direct financing. We also encourage eligible domestic enterprises to list overseas in accordance with laws and regulations, enhancing their ability to expand in global markets. Thank you.

Economic Daily:

The real estate and stock markets are important indicators of economic performance, as Mr. Li just mentioned. What considerations does the NFRA have in stabilizing the real estate market and the stock market? Thank you.

Li Yunze:

Thanks for your question. Stabilizing the real estate and stock markets is of great significance for boosting social expectations and facilitating domestic demand circulation. The April 25 meeting of the Political Bureau of the CPC Central Committee once again made clear requirements for stabilizing the real estate and stock markets. The NFRA is resolutely implementing the arrangements and requirements of the CPC Central Committee and the State Council, coordinating a comprehensive set of measures and actively advancing related work.

To stabilize the real estate market, we have worked to expand and enhance the effectiveness of the urban real estate financing coordination mechanism, supporting efforts to ensure the delivery of houses. Currently, "white list" loans approved by commercial banks have reached 6.7 trillion yuan, supporting the construction and delivery of more than 16 million residential units. This has strongly protected homebuyers' legitimate rights and interests while providing important support for stabilizing the real estate market. The positive changes in the real estate market are also reflected in the credit data. In the first quarter of this year, outstanding real estate loans increased by more than 750 billion yuan. Within this total, new personal mortgage loans saw their largest quarterly increase since 2022 while housing rental loans grew 28% year-on-year. Recently, several leading international investment institutions that have visited China have expressed their belief that the investment value of the Chinese real estate market is gradually becoming apparent. Next, we will accelerate improvements to a series of financing systems that align with the new model of real estate development, including loan management methods for real estate development, personal housing and urban renewal. We will guide financial institutions to maintain stability in real estate financing, effectively meet the demand for both essential and upgraded housing, strengthen the funding supply for high-quality housing, and help continuously consolidate the stable momentum of the real estate market.

Regarding stock market stabilization, we'll continue to fully leverage the advantages of insurance funds as patient, long-term capital, intensifying efforts to encourage their entry and support market stability. Earlier, we launched pilot reforms to promote long-term insurance fund investment, injecting significant new capital into the stock market. Last month, we further increased the upper limit for equity asset investments by insurance funds, creating additional investment capacity. Next, we will introduce several specific measures to continue supporting the stabilization and invigoration of the capital market. First, we will further expand the scope of the pilot program for long-term investment by insurance funds. We plan to approve an additional 60 billion yuan in the near future, injecting more incremental funds into the market. Second, we will adjust the solvency regulation rules, further reducing the risk factor for stock investments by 10% and encouraging insurance companies to increase their market participation. Third, we will promote improvements to the long-term evaluation mechanism, motivate institutional participation, and encourage the matching of long-term capital with long-term investment opportunities. Thank you.

Yicai:

Mr. Pan just mentioned that structural monetary policy tools will be created and vigorously implemented, which are expected to play a positive role in economic structural adjustment. Could you please elaborate further on this? Thank you.

Pan Gongsheng:

Traditionally, monetary policy is mainly a tool for aggregate management. However, in the operation of the Chinese economy, as everyone knows, many contradictions and challenges are structural, and if the structure is not adjusted properly, it is difficult for aggregate control to be effective. Structural monetary policy tools are helpful in promoting the resolution of some structural contradictions and problems. In recent years, the PBC has actively explored this area. Following the principles of "focusing on key areas, taking reasonable and appropriate steps, and knowing when to introduce and withdraw," we have launched several structural monetary tools, gradually forming a monetary policy framework with aggregate tools as the mainstay and structural tools as a supplement. As of the end of April, there were a total of nine structural policy tools, mainly focusing on key areas, major strategies and weak links of the national economy. The outstanding balance was about 5.9 trillion yuan, accounting for 13% of the PBC's balance sheet, which is at a reasonable level.

Structural monetary policy tools, commonly known as relending, are loans provided by the central bank to financial institutions. These tools are usually embedded with incentive mechanisms to guide commercial banks to independently issue loans to market entities. In recent years, guided by structural monetary policy tools, the credit allocation structure of financial institutions has undergone a qualitative change. Everyone is well aware that in previous years, commercial banks had significant risk exposures in areas such as real estate and local financing vehicles on their balance sheets. In recent years, such risk exposures have gradually converged. The intensity, suitability, and precision of financial support for the real economy have significantly improved.

This time, we are introducing and implementing a series of structural monetary policy tools, which involve both an increase in scale and preferential pricing, to better leverage their guiding effect.

First, we are lowering the interest rates on structural monetary policy tools by 25 basis points. The interest rates on structural monetary policy tools such as the agricultural and small loans, technological innovation and transformation loans, carbon emission reduction support tools, stock repurchase and increase loans, and affordable housing loans will be lowered from the current 1.75% to 1.5%. Meanwhile, the interest rate on pledged supplementary lending to policy banks will be reduced from 2.25% to 2%.

Second, we are creating a 500 billion yuan relending tool for service consumption and elderly care. At present, the focus of China's economic policy is on expanding domestic demand and vigorously boosting consumption, with service consumption being an important point for upgrading and expanding consumption. In order to enhance and improve the supply of service consumption, the PBC has established the "service consumption and pension reloan" tool to encourage and guide financial institutions to increase financial support for key areas of service consumption such as accommodation, catering, culture, entertainment, education and the pension industry. It also collaborates with fiscal and other industrial policies to better meet the needs of the public for consumption upgrading. This tool is also an innovative measure by the PBC to support boosting consumption, with a quota of 500 billion yuan.

Third, we will raise the relending quota for sci-tech innovation and technical transformation from 500 billion yuan to 800 billion yuan. This tool was launched in April 2024 by the PBC, in collaboration with the NDRC and Ministry of Science and Technology, with an initial quota of 500 billion yuan. It has effectively supported tech-focused SMEs and technical transformation and equipment renewal in key areas. This time, we will increase the relending quota by 300 billion yuan, bring it to 800 billion yuan, supporting the expansion of the "two renewal" policies.

Fourth, we will increase the relending quota for agriculture and small businesses by 300 billion yuan. With this increase, the total quota for such relending will reach 3 trillion yuan. Combined with the reduction in the relending interest rate this time, this will have a coordinated volume-price effect, further supporting commercial banks in expanding lending to agricultural, micro and small enterprises, and particularly privately owned SMEs.

In the future, based on the economic and financial conditions and the effectiveness of current tools, we may expand the scale, refine the policy features, or introduce new policy tools. Thank you.

South China Morning Post:

Under the backdrop of the China-U.S. trade conflict, are there other relief measures for businesses with high dependence on foreign trade, apart from "no discontinuation or withdrawal of loans"? What specific support measures are there for small and micro enterprises? Thank you.

Li Yunze:

Thank you for your questions. In recent years, we have continued to deepen structural reforms on the financial supply side, guiding banking and insurance institutions to improve their service alignment and encouraging the development of differentiated, personalized products to better meet the diverse financial needs of enterprises of various sizes and types. In particular, to address the financing challenges faced by small and micro enterprises and private enterprises, we have taken the lead in establishing a dedicated financing coordination mechanism to promote the rapid and direct delivery of low-cost funds to businesses. So far, visits have been made to over 67 million business entities across the country, and 12.6 trillion yuan in loans have been issued, of which about one-third are credit loans.

Soon, the NFRA will work with relevant departments to introduce a package of policies supporting financing for micro, small and private enterprises, focusing on four key aspects:

First, we will increase supply. We'll continue to thoroughly and solidly implement the financing coordination mechanism while conducting extensive onsite surveys of enterprises. We'll increase the issuance of first-time loans, the renewal of loans and credit loans. Through these efforts, we'll drive the growth rate of inclusive small and micro enterprise loans to be higher than the average growth rate of various loans.

Second, we will reduce costs. We'll promptly pass on market interest rate benefits and internal fund transfer pricing advantages, while regulating cooperation between financial institutions and third parties. These measures will promote a steady decline in overall financing costs, further reducing the burden on enterprises.

Third, we will improve efficiency. We will drive banks to simplify internal procedures, improve loan approval efficiency, and flexibly meet various financing needs to alleviate the pressure on enterprises' capital turnover.

Fourth, we will optimize the environment. We will strengthen coordination among monetary, fiscal, tax, industrial and regulatory policies. We will accelerate improvements to relevant systems for guarantee-based credit enhancement, credit restoration and classification standards, creating a more conducive development environment.

Against the backdrop of increasing external shocks, we will formulate and implement a series of policies and measures for the banking and insurance sectors to support foreign trade development. Following market-oriented and law-based principles, we will continuously strengthen financial support.

First, we will strengthen financial relief for enterprises facing difficulties. We will expand the financing coordination mechanism to cover all foreign trade enterprises, and drive banks to accelerate the implementation of various policies to stabilize foreign trade, ensuring all eligible businesses can receive and renew loans as needed. We will provide targeted services using customized approaches for individual enterprises that are significantly affected by tariffs and facing temporary operational difficulties.

Second, we will intensify efforts to stabilize exports. We will optimize export credit insurance regulatory policies, enhance underwriting capacity, offer preferential rates, implement expedited claims processing and advance payment on claims, and stabilize enterprises' confidence in receiving orders and exporting. We will urge institutions to provide good financial services for key areas such as cross-border e-commerce and overseas warehouses. We'll support the development of specialized insurance, and guide banks to offer comprehensive, one-stop services that support the development of new foreign trade business models.

Third, we will contribute to expanding domestic sales. We will strengthen financing support for foreign trade enterprises shifting from exports to domestic sales. We'll guide the formation of domestic trade credit insurance consortiums, launch specialized products, and expand both the coverage and amounts of domestic trade credit insurance. We will take multiple measures to help boosting consumption and expanding domestic demand, open up space for foreign trade enterprises to expand sales channels, and help accelerate the integration of domestic and foreign trade. Thank you.

Market News International:

My questions are for Mr. Wu. In today's complex and volatile international environment, market concerns are growing that trade tensions might spread to financial and other sectors. Will that affect the opening up of China's capital market? What measures is the CSRC considering in response? Thank you.

Wu Qing:

Thank you for your questions. Opening up is China's basic state policy and an essential prerequisite for the high-quality development of the capital market. In recent years, the CSRC has firmly implemented the CPC Central Committee's important directives on improving the systems and mechanisms for high-standard opening up and promoting high-standard financial opening up. We have prudently advanced the comprehensive two-way opening up of markets, products and institutions, continuously enhanced convenience for foreign investment in domestic markets, and optimized the qualified foreign investor system. Moreover, we have steadily expanded cross-border connectivity, completely removed restrictions on foreign ownership in institutions, and improved the efficiency of overseas listing registration. Currently, foreign-funded securities firms and other foreign investment have become important participants in the A-share market, with foreign investors holding approximately 3 trillion yuan in tradable A-share market value through the QFII program, Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, and other channels.

Despite the current complex and volatile external situation, the strategic direction of China's high-quality economic development remains fairly clear and firm. The stability and predictability of macroeconomic policies have further increased, especially with timely adjustments to these policies. All these factors have further strengthened foreign investors' confidence in participating in China's capital market. Recently, we've observed many foreign institutions upgrading their ratings on Chinese stocks, conducting intensive research on A-share listed companies, and showing broad interest in and positive evaluations of China's capital market and Chinese assets. As General Secretary Xi Jinping has pointed out, investing in China is investing in the future. Looking ahead, the CSRC will unwaveringly advance the high-standard opening up of the capital market, further improve the framework for opening up, and steadily introduce a series of practical measures for opening up. First, we will continue to expand the openness of institutions. We will further optimize market access services for qualified foreign investors, efficiently handling qualification approval and account opening as one integrated process, and further expand their investment scope. We will support eligible foreign-funded institutions in applying for securities and funds investment consultation qualifications. We will encourage foreign investment institutions to establish yuan-denominated funds for investment in China in accordance with regulations. Second, we will further enrich product offerings. We are moving toward opening up the futures and options market to qualified foreign investors, and support domestic and foreign futures exchanges in expanding cooperation on commodity futures settlement price authorization. We will deepen the opening up of exchange bond markets and include REITs and other products as investment choices under the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs. Third, we will continuously deepen market opening up. We will review and optimize the overseas listing registration mechanism, procedures and related elements to improve registration quality and efficiency. We will strongly support Shanghai's development as an international financial center and strengthen Hong Kong's position as an international financial center. We will steadily advance measures for cooperation between Chinese mainland and Hong Kong, such as including yuan stock trading counters in the Stock Connect program and supporting the launch of cross-border investment and risk management products in Hong Kong. Fourth, we will strengthen bilateral and multilateral cross-border regulatory cooperation. We will adhere to respecting development laws and various rules and norms, actively shape a stable, transparent and predictable regulatory environment, and further strengthen cooperation in securities and audit regulation. We will protect the legitimate interests of enterprises in overseas markets. We'll also create conditions to support high-quality Chinese companies listed overseas in returning to stock markets on the Chinese mainland and Hong Kong. At the same time, we'll ensure the protection of investors' legitimate rights and interests. Thank you.

Financial Times:

I've noticed that the NFRA has launched several pilot measures to support scientific and technological innovation. In April, it worked with multiple ministries to issue the Implementation Plan for the High-Quality Development of Sci-Tech Finance in the Banking and Insurance Industries. How has the implementation of these policies progressed so far? What other supportive measures will be taken? Thank you.

Li Yunze:

Thanks for your questions. Developing sci-tech finance is essential for deeply integrating technological innovation with industrial innovation. We continue to urge banks and insurance companies to increase their support for technological innovation and to actively explore new approaches to tech finance. So far, the growth rate of loans to high-tech enterprises is nearly three times the average growth rate of all loans, and the guarantees provided by technology insurance have exceeded 2 trillion yuan. The various pilot policies we have introduced have all made positive progress. The pilot program for equity investments by financial asset management companies has been strengthened and expanded, with the total amount of intended agreements now exceeding 380 billion yuan. M&A loans for technology enterprises are progressing in an orderly manner, and pilot banks in 18 cities have already completed their first transactions. The comprehensive pilot program for the intellectual property financial ecosystem is steadily advancing, and service platforms have already been established in many locations to help resolve issues such as IP pledge registration, valuation and disposal. The service model of sci-tech insurance has been continuously optimized, and the insurance compensation mechanisms for the first set of major technical equipment and first batch of new materials have also been improved. At the end of March this year, we established China's first commercial aerospace insurance pool in Beijing. Forming an insurance pool is a common international practice in which multiple insurance companies share the risks for an emerging industry or sector. This approach is especially important for the growth of startup industries and sectors that face high uncertainty.

Next, we will focus on existing pilot projects, actively exploring new models, and improving the sci-tech finance system to better support technological innovation. In doing so, we aim to fully serve the development of new quality productive forces.

First, we will optimize credit services. We will promote the establishment of a dedicated credit support mechanism for technological innovation, support banks in setting up specialized technology finance institutions in an orderly manner, and encourage the development of a long-term performance evaluation system for sci-tech loans. Recently, we have been revising the regulations on M&A loans and will issue them as soon as possible to further unlock the potential of M&A loans and accelerate industrial transformation and upgrading.

Second, we will strengthen the role of insurance in risk protection. We will accelerate the development of guidelines for the high-quality growth of sci-tech insurance and make better use of its role in risk sharing and compensation. With the support of the insurance pool mechanism, we will provide stronger insurance guarantees for major scientific and technological breakthroughs and expand insurance products in emerging fields such as robots and low-altitude aircraft, ensuring the innovation-driven development of enterprises.

Third, we will expand equity investment. We will encourage insurance funds to actively participate in venture capital investment in accordance with market principles and to make major equity investments in unlisted technology companies in an orderly manner. We'll support eligible national commercial banks in establishing financial asset investment companies, with approvals to be granted gradually. Today, we will approve one such company, amid our efforts to increase investment in sci-tech innovation enterprises. Thank you.

National Business Daily:

Mr. Pan just mentioned that the central bank launched two monetary policy tools to support the capital market in the fourth quarter of last year. Everyone is curious: what efforts has the central bank made over the past six months? What effects have been achieved by applying these tools according to your evaluation? Looking ahead, what steps will be taken to enhance them? Thank you.

Pan Gongsheng:

Last year, the PBC created two tools to support the capital market in collaboration with the CSRC and NFRA. I announced this development here in September last year. The initial quotas for these two supportive tools were 500 billion yuan and 300 billion yuan, respectively. They met market demand and were widely welcomed. These tools played an important role in boosting investor confidence, improving financial market expectations, and enhancing the inherent stability of the capital market.

These two tools are designed entirely based on market principles, providing important support for listed companies to manage market value through repurchasing shares and increasing holdings. Swap facilities enhance the access to capital of participating entities, while reloan mechanisms for repurchasing shares and increasing holdings provide low-cost funds to commercial banks for issuing related loans. The market participants using these two tools can independently decide the timing and scale of stock purchases. Currently, the swap facility tool has been used twice, with a total amount of 105 billion yuan. Over 500 listed companies and major shareholders have announced the use of loans for stock buybacks and increased holdings with a total amount of about 300 billion yuan.

These two tools have embedded counter-cyclical adjustment properties, mainly to provide support. The logical mechanism behind them is that when the capital market is significantly undervalued, securities institutions, listed companies and major shareholders will have a stronger willingness to use the low-cost funds provided by these two tools to buy stocks, thereby breaking the negative cycle of market downturns. For instance, last November, around New Year's Day this year, and in early April when the U.S. imposed excessive tariffs, the usage of swap facilities increased significantly. Listed companies were also quite active in repurchasing shares and increasing holdings. The internal stability mechanism established through these measures has effectively corrected market overshooting and stabilized expectations in the capital market.

Throughout the policy implementation process, the PBC has been working closely with the CSRC and NFRA to continuously summarize practical experiences. These two tools are also frequent topics in my discussions with Mr. Wu. Based on feedback from various stakeholders, we have continuously refined the policy elements of these tools and enhanced their implementation efficiency.

First, the total quota of 800 million yuan for the two tools has been combined for unified use. With the quotas now integrated, funds can be allocated between both tools, which enhances the convenience and flexibility, better meeting the needs of different types of market entities.

Second, in terms of swap facilities, the CSRC has expanded the pool of participating institutions from the initial 20 brokerage firms and funds to 40 institutions. The range of acceptable collaterals now covers Hong Kong-listed shares and restricted shares, among others. Additionally, the CSRC has guided financial infrastructure providers to lower their service fees.

Third, we've extended the maximum term for the stock repurchase and increased holdings relending facility from one year to three years, encouraging banks to issue credit loans. We have also reduced the required proportion of listed companies' own funds used in stock repurchases and increased holdings from 30% to 10%. Additionally, in consultation with the State-owned Assets Supervision and Administration Commission, we have included two state-owned capital operation platforms — China Chengtong Holdings and China Reform Holdings — into the support framework. These two companies have already announced plans to use a total of 180 billion yuan from these tools to increase their holdings in listed companies.

In addition, as Mr. Wu just mentioned, Central Huijin Investment plays an important strategic role in maintaining the stability of the capital market. The PBC firmly supports the company in intensifying its purchases of stock market index funds when necessary and will provide ample refinancing support to resolutely safeguard the stable operation of the capital market. Thank you.

Xinhua Finance:

The questions go to Mr. Wu. You just mentioned the action plan to promote the high-quality development of public funds. Could you update us on the progress that's been made? What impact will this action plan have on the capital market? Thank you.

Wu Qing:

Thank you for your questions. At two press conferences in January and March this year, I talked about progress made in encouraging medium- and long-term funds to invest in the capital market and outlined the basic approach to public fund reform. Since the meeting held by the Political Bureau of the CPC Central Committee on Sept. 26 last year, the CSRC has implemented the decision and arrangement to "steadily promote public fund reform." We've conducted more than 30 special investigations, gathering feedback from all stakeholders, including investors and institutions. These efforts focused on addressing the pain points and bottlenecks commonly reported by investors. The action plan to promote the high-quality development of public funds has been finalized and will be released and implemented today. While I've previously shared the basic approach to public fund reform with you, the complete details are available on our website. This reform initiative launches just as the investment world has been reflecting on Warren Buffett's widely discussed farewell address. Buffett is a widely respected investor who will retire this year. I believe the most valuable lessons we can take from him are value investing, long-term investing, rational investing and his dedication to delivering returns to investors. These basic principles are timeless. This is precisely what our reform aims to promote. This era needs a new generation of investment leaders. We already have a group of exceptional companies and entrepreneurs. Therefore, I'm confident we'll see the rise of outstanding investors and investment institutions to match. Some critical rules are essential for cultivating this potential. The focus of this reform centers on several priorities:

First, we will strengthen the alignment of interests with investors. The focus is on reforming the fund operation model and urging the industry to return to its purpose of "managing wealth on behalf of clients who have entrusted their assets." We will optimize the fee structure for actively managed equity funds. Those with poor performance must charge lower management fees. Through a floating management fee mechanism, we will end the practice where fund companies collect the same fees regardless of whether returns are good or bad. At the same time, we will incorporate metrics that are directly related to investors' interests, such as whether performance exceeds benchmarks and how investors' profits or losses fare, into the assessment systems for both fund companies and fund managers. This will push fund companies to shift from prioritizing "scale" to emphasizing "returns." In addition, we will raise the required proportion of bonuses that fund company executives and fund managers must invest in their own products while moderately extending the lock-up period. This will ensure these key personnel have interests that are more closely aligned with those of investors.

Second, we will emphasize enhancing the stability of fund investment behavior. To address issues such as fund style drift and false advertising of investment products, we will require each fund to set clear performance comparison benchmarks that serve as objective measures of real performance. These benchmarks will help ensure that a fund's investment activities remain consistent with its stated name and positioning, allowing investors to accurately assess what they are investing in. At the same time, to strengthen the foundation for long-term investing, we will establish comprehensive incentive and restraint mechanisms involving regulators, self-regulatory organizations, rating agencies and the fund companies themselves. We will require fund companies to implement long-term performance evaluations, ensuring that performance over periods of more than three years should not be less than 80% of the assessment. This will reduce the tendency for fund managers to chase short-term gains and sell in downturns, and help improve long-term returns for investors.

Third, we will focus on enhancing the ability to serve investors. We will guide fund companies and fund sales institutions to improve how they allocate resources across investment research, product design, risk management and other areas to better serve investors. We will promptly issue regulatory provisions for public fund investment advisors, promote standardized development, and provide investors with appropriate asset allocation portfolios. At the same time, we will accelerate the launch of a direct sales service platform for institutional investors to facilitate the participation of various institutional investors in fund investments.

Fourth, we will focus on the strategic direction of developing and strengthening equity funds. Equity investment is the key area where public funds can create unique value for investors. Since September last year, the scale of equity funds has increased from 7 trillion yuan to 8.3 trillion yuan. Looking ahead, we will strengthen regulatory guidance and optimize the classification evaluation mechanisms for fund companies and fund sales institutions to promote increased issuance and sales of equity funds. We'll actively promote product innovation and continuously enrich index funds and actively managed funds that align with national development goals and are more conducive to creating long-term returns for investors. Building on the previously established five-working-day fast registration mechanism for stock ETFs, we will further significantly improve the registration efficiency for actively managed equity funds and other fund products that meet certain equity investment proportion requirements.

We believe that with the implementation of the reform plan, public funds will place greater emphasis on the best interests of investors, and investors' sense of gain will be further enhanced. Thank you.

Shou Xiaoli:

Let's continue with the questions. The press conference has been underway for nearly 85 minutes. Due to time constraints, we will take one last question.

Phoenix TV:

Mr. Pan, at this year's "two sessions" press conference, you mentioned the innovative launch of the science and technology board in the bond market. How is that progressing? You just mentioned the creation of a risk-sharing tool for sci-tech innovation bonds. What are the considerations behind this? Thank you.

Pan Gongsheng:

Building a financial system for scientific and technological innovation is a crucial focus for the high-quality development of financial services to the real economy. It is also a vital part of deepening the structural reforms on the financial supply side. In recent years, the PBC, in collaboration with relevant departments, has comprehensively utilized tools such as credit, bonds, equity and insurance to continuously enhance financial support for technological innovation, accomplishing considerable work and accumulating experience. Just now, Mr. Li and Mr. Wu discussed many aspects related to this.

Earlier, the PBC, together with the CSRC, the NFRA, the Ministry of Science and Technology, and other departments, actively prepared to launch the science and technology board in the bond market to support three types of market entities: financial institutions, sci-tech enterprises and equity investment institutions. At the same time, considering the characteristics of sci-tech enterprises and equity investment institutions, we have improved institutional arrangements for the issuance, trading, information disclosure and credit rating of sci-tech innovation bonds, establishing a supporting rule system that is compatible with the characteristics of technology innovation financing. The relevant policies and preparatory work are basically in place. Currently, the market response has been very positive, with financial institutions, sci-tech enterprises and equity investment institutions of various types actively communicating with the PBC and CSRC, showing strong interest in issuing sci-tech innovation bonds. According to preliminary statistics, nearly 100 market institutions currently plan to issue more than 300 billion yuan in sci-tech innovation bonds, with expectations for even greater participation in the future.

In addition, in order to support equity investment institutions in issuing long-term bonds for financing on the science and technology board, the PBC, in collaboration with the CSRC, has created a sci-tech innovation bond risk-sharing tool, drawing on the experience of establishing the private enterprise bond financing support tool in 2018. As you are all aware, equity investment institutions play a key role in supporting technological innovation, and especially in promoting capital formation. Statistics show that they have supported nearly 90% of the companies listed on the Science and Technology Innovation Board and 60% of the companies listed on the Growth Enterprise Market in China. However, equity investment institutions seldom issue bonds in the bond market, and issuing bonds themselves might involve shorter terms and relatively higher costs.

Drawing from the experience of the 2018 private enterprise bond financing support tool, the PBC provides low-cost relending funds, which can be used to purchase sci-tech innovation bonds. Together with local governments and market-based credit enhancement institutions, various credit enhancement measures have been taken to jointly share the default loss risk of bond investors. This can effectively reduce the bond financing costs for equity investment institutions and support them in issuing longer-term bonds, such as eight- or 10-year bonds.

In the early stages of policy formation, we invited several experts from equity investment and well-known private equity investment institutions to provide their opinions in person. They offered many valuable policy suggestions and expressed high expectations for the introduction of this policy tool.

In short, through specific policy arrangements such as the science and technology board in the bond market and risk-sharing tools, we aim to further broaden the financing channels for sci-tech enterprises and equity investment institutions, stimulate market vitality and confidence, attract more social capital into the field of technological innovation, and promote mutual promotion and a positive cycle between the private equity financing market and the stock issuance trading market. Thank you.

Shou Xiaoli:

Thank you to all the speakers and friends from the media for your participation. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Wang Yiming, Mi Xingang, Liu Sitong, Huang Shan, Wang Xingguang, Zhang Rui, Xiang Bin, Xu Kailin, Zhang Tingting, Chen Xinyan, Yuan Fang, Zhou Jing, Liu Qiang, Li Huiru, Zhang Junmian, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Li Jing, vice president of the Organizing Committee of TWG 2025 Chengdu, and vice minister of the General Administration of Sport of China

Mr. Yang Xingping, vice president of the Organizing Committee of TWG 2025 Chengdu, and vice governor of Sichuan province

Mr. Wang Fengchao, vice president and secretary general of the Organizing Committee of TWG 2025 Chengdu, and mayor of Chengdu

Chairperson:

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

Date:

April 29, 2025

Zhou Jianshe:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). The 12th edition of The World Games (TWG) will take place in Chengdu, Sichuan province. As we mark the 100-day countdown to The World Games 2025 Chengdu, we are delighted to have with us today Mr. Li Jing, vice president of the Organizing Committee of TWG 2025 Chengdu and vice minister of the General Administration of Sport of China; Mr. Yang Xingping, vice president of the Organizing Committee of TWG 2025 Chengdu and vice governor of Sichuan province; and Mr. Wang Fengchao, vice president and secretary general of the Organizing Committee of TWG 2025 Chengdu as well as mayor of Chengdu. They will brief you on the preparations for TWG 2025 Chengdu and take your questions.

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

Li Jing:

Hello! Today marks the 100-day countdown to TWG 2025 Chengdu. On behalf of the General Administration of Sport of China and the Organizing Committee of TWG 2025 Chengdu, I would like to extend our heartfelt gratitude for your longstanding concern, support and contributions to the development of sports.

The World Games represent the highest-level international multi-sport event for non-Olympic disciplines. The Central Committee of the Communist Party of China (CPC) and the State Council attach great importance to the preparations for TWG 2025 Chengdu, incorporating this endeavor into this year's government work report. Successfully hosting TWG 2025 Chengdu holds significant importance in advancing the Healthy China initiative and building China into a leading sporting nation. It also plays a vital role in promoting economic and social development, enhancing mutual learning among civilizations, and contributing to the building of a community with a shared future for mankind.

Next, I will focus on introducing the organization of the competitions and the participation of the Chinese delegation in The World Games.

First, the organization of the competition is proceeding to a high standard.

TWG 2025 Chengdu will feature 34 sports, 60 disciplines and 255 events. The General Administration of Sport of China, in collaboration with Sichuan province and the city of Chengdu, has been implementing the principles of hosting a "green, inclusive, open and clean" Games, as well as the requirements of a "simple, safe and splendid" event throughout the entire preparation process. The venue layout has been finalized, with 27 venues designated to host competitions. Competition teams have been established for 21 of these venues, and professionals with strong expertise and extensive event-organizing experience have been appointed to ensure smooth venue operations. The daily competition schedule has also largely been finalized. The softball and floorball events will kick off one day before the opening ceremony.

We've organized and completed 25 test activities based on domestic and international events. These have effectively verified our preparations in key areas, including equipment and facilities, organizational operations, timing and scoring, local support and command coordination. This has laid a solid foundation for the smooth operation of the event.

Second, efforts to organize team participation are well underway.

The Chinese delegation will compete with full strength in these Games. The General Administration of Sport is steadily progressing in forming our national delegation. So far, China has qualified for 28 major events and 152 sub-events, with about 330 athletes expected to compete. This will be the largest Chinese delegation ever at TWG, both in terms of events and the number of athletes.

The slogan of TWG 2025 Chengdu is "Boundless Sports, Countless Wonders." Our Chinese athletes will fully embody this spirit. They come from all walks of life, bringing different backgrounds and vibrant energy. We've got professional athletes from our national sports system, but also outstanding competitors from universities, businesses, public institutions and community sports clubs. We even have para-athletes in freediving, ju-jitsu, and archery selected by the China Disabled Persons' Federation. They'll compete fairly with athletes from around the world on the field and engage in friendly exchanges off the field. They will fully showcase how far China has come in sports development, particularly in non-Olympic sports, and demonstrate the spirit and energy of Chinese athletes. The General Administration of Sport and the China Disabled Persons' Federation will make sure the athletes get all the support they need during these final preparation stages. We're striving for excellence, not just in terms of athletic performance, but also in promoting sportsmanship.

We look forward to your continued coverage and support as we gear up for TWG 2025 Chengdu. Thank you.

Zhou Jianshe:

Thank you very much for that excellent overview. Now I'll hand things over to Mr. Yang.

Yang Xingping:

Good afternoon, everyone. First, I want to thank everyone for your interest and support for Sichuan, especially for TWG 2025 Chengdu.

TWG 2025 Chengdu marks another major international multi-sport event hosted by Sichuan, following the 2023 International University Sports Federation (FISU) World University Games. Since winning the bid, Sichuan has incorporated guidance from the CPC Central Committee and the State Council into every aspect of our planning and preparation process. With the overall direction from the General Administration of Sport and strong backing from relevant ministries, we've mobilized all available resources to effectively advance our preparations.

First, we've established a robust organizational system, creating an efficient and streamlined working mechanism. Drawing on our experience from the Chengdu Universiade and considering the unique characteristics of TWG, we've established an organizing committee co-chaired by key leaders from the General Administration of Sport and the Sichuan Provincial Government. The committee maintains close communication with the International World Games Association and works to facilitate the Chengdu Executive Committee's coordination of specific matters like competition organization. We're also strengthening coordination with relevant international sports federations to advance event preparations in an integrated manner. At the provincial level, we've formed a working group of 51 affiliated departments and units to fully support Chengdu in advancing the preparation work with high standards, quality and efficiency. Of the 107 key preparation tasks, we've completed 61, with the remaining tasks progressing on schedule.

Second, we've focused on enhancing our service and support capabilities to meet all the needs of the Games. We've arranged 27 competition venues across eight zones, with renovation, construction and equipment installation all progressing on schedule. For events being held on the Chinese mainland for the first time, we initiated early coordination on rules and standards to ensure venues and equipment meet requirements. All facilities except those requiring temporary construction have already hosted test events and drills. Following our "compete and explore locally" approach, we've set up two athlete villages — Zone A and Zone B. We've built a service support system centered on participant experience, covering every aspect from reception and arrival/departure to transportation, accommodation, catering, and medical services. We've recruited and trained nearly 10,000 university student volunteers and set up more than 500 volunteer service stations to support the games and related participant activities. In addition, we've also developed the Chengdu2025 app, which provides event information, weather updates, transportation services and more. It officially launched in February this year.

We've also ramped up publicity and promotion to create a vibrant atmosphere for the Games. By connecting World Games preparations with nationwide fitness initiatives, we've launched a series of events like the "10,000 People, 1,000 Matches" friendship games and the New World Games-Inspired Twelve-Month Fair. These activities have created excitement across the entire province, giving people opportunities to see, hear and experience TWG firsthand. We've worked hard to tell compelling stories about TWG, China and Sichuan province, resulting in over 20,000 news reports from media outlets both at home and abroad. We've globally unveiled our official emblem, slogan and mascot, which made their international debut during the Paris Olympics. Right now, our entire province has entered "World Games Time." Torchbearer selection is underway, while promotional activities are bringing World Games sports into schools, neighborhoods and shopping areas. Across Sichuan's streets and alleys, World Games symbols and signage are everywhere, reflecting the province's growing enthusiasm to welcome, participate in and share in the Games.

TWG 2025 Chengdu will open in less than 100 days. We welcome friends from around the world to visit Sichuan at that time. The homeland of pandas looks forward to your arrival. Thank you.

Zhou Jianshe:

Thanks to Mr. Yang for your introduction. Now let's welcome Mr. Wang to speak.

Wang Fengchao:

Good morning, friends from the media. The 12th World Games will open in Chengdu on Aug. 7, marking the first time the Chinese mainland has hosted TWG. Since successfully bidding in 2019, Chengdu has carefully followed the requirements to deliver a streamlined, safe and spectacular event. The entire city has been working together on detailed preparations, aiming to present a World Games filled with "Boundless Sports, Countless Wonders" to global audiences.

First, we've integrated resources with an emphasis on operational efficiency in hosting the event. We've pooled wisdom from all sides, organizing nearly 400 special demonstration meetings and formulating nearly 300 design and construction standards for competition venues. We've adhered to the principle of economical and intensive use of venues. Of the 27 competition venues, 18 are existing facilities with partial functional adjustments, and nine are temporary structures built around lakes and parks. No new venues have been constructed. We've embraced technological empowerment and green, low-carbon principles, incorporating over 230 technological products into the World Games service system. Our goal is to deliver an event that's both simple and spectacular.

Second, we've optimized services and improved the city through the Games. We've combined event preparation with urban governance, implementing action plans to enhance urban spaces, increase green areas, improve the city's appearance and develop distinctive neighborhoods. We've created World Games-themed landscapes tailored to local conditions and coordinated the placement of over 500 urban volunteer service stations. With enthusiastic participation from our citizens, we're collectively improving the city's overall quality and character, welcoming TWG with the best possible environment.

Third, we've built platforms to promote industrial growth through the Games. We've continuously worked to convert event traffic into economic growth by building a technology-powered platform that matches supply with demand for World Games scenarios. This has attracted multiple low-altitude aviation enterprises to venture into the event economy, while 25 robot products "converging" for competition, achieving a "dual convergence" of new technologies and products within the World Games framework. We've organized the "World Games-Tianfu" cultural and art exhibition and created seven themed cultural tourism experience routes, including the "National Treasure Fan Tour" and the "Tour of Vibrant Jincheng." These initiatives have given inbound tourism a good start in 2025.

Fourth, we've created immersive environments to benefit the public through the Games. We've actively organized a series of popular, accessible activities, including the "Ten Thousand People, Thousand Games" friendship matches, the "New Twelve-Month Fair for the World Games" cultural experience, and the "Travel with the Games" initiative. We've built or renovated 77 sports parks, constructed 407 community sports corners and created 830 new spaces along the Tianfu Greenway. Additionally, we're gradually opening 130 "World Games Spaces" in residential neighborhoods, bringing trendy sports like parkour, flying disc, sport climbing and archery into people's daily lives. World Games fever continues to build momentum in communities, shopping districts, schools and businesses.

We sincerely invite friends from around the world to gather in "Leisurely Sichuan, Happy Chengdu," to share in the excitement of sports and TWG. Come and experience firsthand the vibrant atmosphere of our park city beneath snow-capped mountains, a prosperous place full of happiness, and a center of ongoing innovation. Thank you!

Zhou Jianshe:

Thanks to Mr. Wang for your introduction. Now the floor is open for questions. Please identify your media outlet before raising your questions.

Dazhong Daily:

Sichuan province has extended a global invitation to enjoy the Games while exploring the region and has organized a series of activities called "Travel with the Games." Could you tell us more about these initiatives? Additionally, how does Sichuan plan to leverage the Games as a medium to promote the integrated development of culture, sports and tourism? Thank you.

Yang Xingping:

Thank you for your questions. "Travel with the Games" is a very important initiative launched by the General Administration of Sport in collaboration with relevant national departments, focusing on the integrated development of culture, sports and tourism. As you know, Sichuan has incredibly rich cultural and tourism resources. The "Travel with the Games" initiative highlights many must-visit destinations that are worth savoring and exploring at a leisurely pace.

Sichuan has been known as the "Land of Abundance" since ancient times. Its unique geographical conditions and rich historical culture have shaped both its natural ecological beauty and colorful cultural charm. Here, you'll find the mysterious Sanxingdui Ruins site and the fairy-tale Jiuzhaigou Valley, as well as the hometown of the giant panda. The ancient Shu civilization, Three Kingdoms culture, and diverse ethnic traditions flourish side by side, while Sichuan liquor, tea, cuisine and opera have earned acclaim both domestically and internationally. Chengdu, the provincial capital, is one of China's happiest and most vibrant cities. Its streets and alleys are lined with hotpot restaurants, cafés, tea houses, and bookstores, creating an atmosphere rich with the essence of daily life. This magical land of Sichuan, abundant in natural resources and talented people, was once home to ancient literary giants like Sima Xiangru, Li Bai and Su Shi, who left behind a rich heritage. Today, "Ne Zha" by director Jiaozi, the music of Dao Lang, and Li Ziqi's pastoral lifestyle have become new cultural ambassadors showcasing Sichuan to the world. Coupled with the continuous hosting of major sports events such as TWG, Sichuan has excellent foundational conditions for promoting the integrated development of culture, sports and tourism.

To this end, we have strengthened overall planning and organized a series of "Travel with the Games" activities across the province, promoting the deep integration and development of culture, sports and tourism. Last October, we launched World Games-themed promotional caravans, traveling along five routes to connect all 21 cities and prefectures in our province. We designed these tours to blend World Games sports demonstrations with local events and festivals, link competition venues with popular scenic spots and city landmarks, and combine the excitement of athletic competition with opportunities to enjoy local scenery and cuisine. More than 200,000 residents and visitors have engaged with these World Games experiences. This initiative has sparked over 200 "sports plus tourism" activities across the region and highlighted more than 200 attractions and shopping districts, really boosting the connection between our sports and tourism economies.

Friends from the media, sports events serve as more than just competitive arenas; they're also powerful showcases for our culture and tourism. We sincerely invite all of you to come watch the Games in Chengdu and explore Sichuan with your families. Experience the excitement of World Games sports, take in the beautiful landscapes of Sichuan, and feel the happiness that Chengdu has to offer! Thank you.

National Business Daily:

Frugality is an important concept for hosting modern large-scale sports events. What measures have been taken in this regard in the construction of venues and event preparations? Thank you.

Wang Fengchao:

Thanks for your question. I'll answer this one. In the preparations for TWG 2025 Chengdu, we have consistently adhered to the principle of presenting a streamlined, safe and splendid Games, practicing fiscal responsibility throughout every aspect of our planning.

In terms of venue construction, we have insisted on renovating existing venues rather than building new ones. All 27 competition venues are either renovated existing facilities or temporary structures. During the renovation process, we've balanced both the immediate needs of the events and long-term post-Games use. We've used only green, environmentally friendly building materials and recyclable resources, while implementing prefabricated and standardized construction methods to achieve efficient production and streamlined installation. At the same time, we've coordinated with teaching schedules and operational activities, implementing venue-specific policies to carefully plan construction timelines. This approach has minimized disruption to venues that remain in active use throughout the preparation period.

After TWG, we'll conduct a coordinated study on how best to utilize each venue and systematically open them to the public. These facilities will play an enhanced role in professional training, sporting events, and grassroots sports development, particularly by providing citizens with more opportunities to participate in non-Olympic and emerging sports.

In terms of equipment and facilities, while ensuring we meet all sporting event requirements, we've followed a clear hierarchy of priorities: borrowing first, renting second and purchasing only when necessary. We've implemented a strategic mix of borrowing, utilizing existing equipment where possible, and procurement to minimize equipment costs. The competition equipment for 34 major events and 60 sub-events is now in place. After the Games, all purchased competition equipment will be repurposed for competitive training programs, youth talent development, community fitness initiatives and professional event organization, continuing to serve and promote sports development.

In terms of event organization, we've optimized the torch relay route and carefully calibrated the number of torchbearers. This approach allows us to fully showcase Chinese characteristics, unique charms of Bashu culture, and Chengdu's distinctive appeal, while promoting sports culture and encouraging active lifestyles. We've streamlined the duration of the opening and closing ceremonies and optimized the event procedures. We've implemented comprehensive measures, including dedicated transportation resources and other support measures, with detailed transportation arrangements for all participants. Throughout our planning, we've focused on minimizing disruption to residents' daily lives while maintaining safety and order. Thank you.

Cover News:

Anti-doping efforts are essential to maintaining the integrity of sports. Could you please tell us about the current status of anti-doping preparations for TWG 2025 Chengdu? What steps will be taken next to ensure a fair and clean competitive environment for the athletes? Thank you.

Li Jing:

Thanks for your question. I'll take this one. Anti-doping efforts are an important cornerstone for ensuring the smooth operation of competitions and a prerequisite for protecting the physical and mental health of athletes. The anti-doping measures at TWG 2025 Chengdu strictly adhere to the World Anti-Doping Code and related international standards. These measures are systematically organized and implemented in strict accordance with the policy requirements of the World Anti-Doping Agency and the International World Games Association.

First, I'll discuss the setup of doping control stations. Under the guidance of the International World Games Association, international testing agencies, and the China Anti-Doping Agency, doping control stations are planned for all competition venues and the Athletes' Village during TWG 2025 Chengdu. These stations will conduct urine samples, blood samples, and dried blood spot testing on athletes. We will also use the China Anti-Doping Smart Management Platform, which was independently developed by China, and "Made in China" dried blood spot testing equipment to conduct paperless doping tests. Athletes may be subject to doping tests at any time and place without prior notice.

Second, I'll address anti-doping education efforts. To create a clean and fair competition environment, we will implement an anti-doping education program in line with the policies of the International World Games Association. This includes setting up anti-doping education courses and outreach stations, offering a variety of educational activities such as knowledge quizzes, exhibitions and interactive games. These activities will educate participants about anti-doping regulations, strengthen their understanding of compliance requirements, and help maintain a spirit of fair play throughout the Games.

Third, I'll cover the prevention and control of food-based, medical-based, and pharmaceutical-based doping. The event organizing committee is firmly implementing the strictest requirements by establishing a comprehensive doping risk prevention and control system that addresses the entire chain, starting from the source. This ensures the safety of athletes' food, medical care and medication, guaranteeing that TWG 2025 Chengdu will be simple, safe and spectacular. Thank you.

CCTV:

TWG 2025 Chengdu marks the second major international multi-sport event hosted by Sichuan province, following the successful Chengdu 2021 FISU World University Games. How is the provincial government planning to use this opportunity to promote the high-quality development of Sichuan's sports industry? Thank you.

Yang Xingping:

Thank you for your interest in Sichuan's sports development. The Games will have a far-reaching impact on Sichuan's sporting industry. We're actively seizing this opportunity to promote high-quality development in Sichuan's sports sector and accelerate our transformation into a province known for sporting excellence.

Let me first address mass sports. TWG 2025 Chengdu will feature cutting-edge, fashionable and highly engaging events, providing the public with more options for fitness activities. We have organized a variety of public fitness activities in conjunction with TWG test events and tour series. Last year, we organized 11,000 sessions, engaging more than 40 million participants in mass public fitness activities. At the same time, we're leveraging the World Games to address shortcomings in fitness facilities, transforming prime urban locations into accessible neighborhood sports spaces. By 2024, the province's per capita sports area had increased by 27% compared to 2022. Going forward, we will continue to use the World Games to widely promote exercise and health concepts, further igniting enthusiasm for public fitness.

Then there's competitive sports. TWG is a valuable complement to the Olympics, providing excellent promotion for the development of competitive sports. We'll take this opportunity to vigorously promote the spirit of unity, cooperation and relentless effort in sports, actively injecting new momentum into the development of competitive sports in Sichuan. Additionally, we're using this opportunity to strengthen exchanges with outstanding athletes, coaches and referees to learn from their expertise, enhance our training methods and develop our pipeline of emerging talent. We aim to achieve greater breakthroughs in Sichuan's potential sports and specialized fields.

Let's look at the impact on the sports industry. The 31st FISU Summer World University Games, held in Chengdu in 2023, generated a total tourism spending of 12.6 billion yuan (US$1.75 billion). This significantly boosted consumption and drove development across the region. The upcoming World Games will also attract many spectators and bring together more than 4,000 athletes from over 100 countries and regions, many traveling with their families and friends. This presents another opportunity for us to enhance city management, boost the economy and benefit our residents while hosting the Games. The excitement around the World Games is set to boost sports consumption and drive increased spending in hotels, catering, tourism, retail and related industries. It'll also attract more sports events and companies to Sichuan, creating new opportunities in sports manufacturing, including smart sports gear, smart venues and outdoor equipment. Meanwhile, the event will accelerate the growth of new business forms related to winter sports, outdoor activities and aviation sports throughout the province. Going forward, we'll continue to use TWG as a catalyst for economic growth, turning Sichuan's sports market advantages into new development momentum. Thank you.

The Poster News APP:

Sports events can significantly boost host cities' development, particularly in the area of consumer spending. What strategies is Chengdu implementing to leverage TWG's popularity and develop new consumption opportunities? Thank you.

Wang Fengchao:

Thanks for your question. Sports events have become a new driver of consumer spending. Using TWG as a platform, we've integrated our strengths in business, culture, tourism, sports, health and exhibitions to create diverse consumption opportunities and enhance Chengdu's influence.

On the one hand, we're focusing on creating new consumption experiences during TWG. Currently, we've partnered with major shopping districts, tourist attractions and consumer platforms to launch World Games-themed marketing campaigns, offering exclusive discounts and licensed merchandise. More than 40 offline licensed retail stores and booths are now open to the public, with our first Beijing location officially opening on April 27. Earlier, Sichuan Airlines unveiled a World Games-themed flight, offering international travelers a special journey showcasing Sichuan and Chinese culture. Next, we'll be launching World Games-themed high-speed trains and setting up mobile franchise sales channels to further stimulate diverse consumer spending.

On the other hand, we are focusing on stimulating new consumer spending during TWG. Based on our two mascots — Shubao, a giant panda, and Jinzai, a golden snub-nosed monkey — we've released more than 360 kinds of licensed products across 16 categories, including toys, badges, school supplies and everyday items. We've also developed specialty products like blind boxes containing 3D commemorative tickets and emblem sets from previous World Games. To align with the event schedule, we'll launch direct transportation routes connecting competition venues to shopping districts and tourist attractions, along with discount routes to make cultural experiences and travel more convenient. We're also planning a series of "Traveling with the Games" themed activities and consumption promotion events like international consumption seasons and city-wide consumer-friendly activities, so as to further expand crossover consumption spaces.

In addition, we have further improved services and convenience for inbound tourism to better serve foreign tourists. Regarding foreign currency payments, 21 overseas e-wallets are now accepted in Chengdu. International visitors can easily use Alipay, WeChat Pay, and UnionPay's QuickPass just like local residents. They can also exchange currency and withdraw cash using foreign bank cards at the city's 5,086 ATMs and 1,306 bank branches. All major shops throughout the city accept foreign card payments. Regarding language services, AI translation screens have been installed in key areas with high tourist traffic, including the Chengdu Tianfu International Airport, Kuanzhai Alley and Dujiangyan scenic area. These screens provide real-time translation, information and financial consultation in 14 languages. Additionally, all popular restaurants now offer bilingual menus. Regarding the refund-upon-departure policy, we've expanded product categories, streamlined processes, and increased the number of tax refund stores in the city to 429. Thank you.

Jiupai News:

The mascots Shubao and Jinzai, modeled after the giant panda and golden snub-nosed monkey, showcase Chengdu's unique cultural charm. What plans do you have for cultural exchange activities during TWG? Thank you.

Wang Fengchao:

Thanks, I will answer your question. Sports events are not only a stage for athletic competition, but also a grand gathering for cultural exchange. As such, we'll plan and organize various cultural experience activities to build a platform for cultural exchange for friends from around the world.

As for urban cultural exchange activities, we have connected a series of well-known cultural scenic areas and districts, including the Chengdu Research Base of Giant Panda Breeding, the Taikoo Li business circle and Kuanzhai Alley. We've designed premium cultural tourism routes highlighting pandas, local lifestyles and Chengdu culture. These itineraries allow athletes, technical officials and other visitors to Chengdu to observe giant pandas up close, visit museums and enjoy our parks and green spaces. We're also planning to host a cultural and art exhibition centered on intangible cultural heritage, TWG, and Tianfu culture, allowing visitors to experience the unique charm of Chinese civilization and Tianfu culture.

In terms of exchange activities within TWG Village, in addition to the village's opening ceremony, we will organize two types of interactive experiences: one featuring fine traditional Chinese culture and the other showcasing Chinese intangible cultural heritage. These events will allow participants to immerse themselves in 12 traditional crafts, including calligraphy, painting, Shu embroidery, shadow puppetry and paper cutting. We'll also invite street performances into TWG Village and host interactive musical events that showcase Chengdu's culture, allowing participants to experience the unique charm of this international city of music.

We've also created a specially designed TWG Plaza within the International Horticultural Exhibition Park in Chengdu Eastern New Area. The plaza features zones for sports demonstrations, Chengdu cultural exhibits, dining options, performance stages, and other attractions. The plaza will provide participants and visitors with a comprehensive experience for sightseeing, entertainment, dining, shopping and performances, all in one location. We'll hold the "Athletes' Night" event at TWG Plaza on Aug. 12, featuring interactive cultural activities, art performances, the best athlete awards ceremony and a grand gala. This will provide a platform for contestants from all over the world to communicate, interact and strengthen friendships. During the Games, TWG Plaza will be open to the public free of charge. We welcome visitors from everywhere to come experience World Games events in Chengdu and immerse themselves in our distinctive cultural offerings. Thank you.

China News Service:

TWG has attracted competitors from numerous countries and regions. How will Sichuan province use this opportunity to further advance opening up and cooperation? Thank you.

Yang Xingping:

Thank you for your question. Further expanding opening up is a necessary step for Sichuan to broaden its development opportunities and enhance its economic quality. Therefore, we'll seize the opportunity presented by TWG to further deepen opening up and cooperation, while striving to better serve and integrate into the new development framework.

First, we will continue to expand channels for opening up. We are leveraging TWG as an opportunity to expand our international gateways. In the past few days, we've launched direct flights from Chengdu to Dubai, as well as to Madrid in Spain and Paris. Tomorrow, we'll launch direct flights to Penang, Malaysia. The launch of these flight routes has greatly enhanced the movement of people and trade between these countries and Sichuan. Moving forward, we will further leverage the advantage of Chengdu's two international airports to establish additional international air routes. During the Games, dedicated channels and windows will be established at official entry and exit ports to facilitate the movement of personnel and materials. On the other hand, Chengdu is also an important node city of the Belt and Road Initiative. The China-Europe Railway Express, which departs from Chengdu and Chongqing, connects more than 120 cities in Eurasia. With 36,000 completed train trips, it has become China's most stable China-Europe freight train service with the highest volume and widest regional cooperation network. Looking ahead, we will continue to open land-based transit corridors, promote air-rail-sea multimodal transportation, and focus on building integrated multidimensional transportation corridors to continuously expand channels for opening up.

Second, we will seize the opportunity to expand cultural and people-to-people exchanges. As a major province in western China, Sichuan has established 516 international sister city and friendly cooperation relationships with partners in 90 countries. These networks of friendship have been built and accumulated over years of international exchanges. Among these, major international events such as the Chengdu Universiade, the International Horticultural Exhibition and the Western China International Fair have played crucial roles in helping Sichuan connect with the world and expand its global presence. Therefore, we must further seize the opportunity presented by TWG to carefully plan and continuously conduct international exchange programs such as the "Sichuan Tour for Diplomatic Envoys to China" and the "Sichuan Tour for Foreign Media." We'll also continuously deepen talent exchanges in culture, art, education and sports, allowing more international friends to visit and understand Sichuan.

Furthermore, we will deepen comprehensive cooperation across multiple fields. Sichuan has established strong economic and trade relations with more than 200 countries and regions. Currently, there are over 5,600 foreign-funded enterprises in Sichuan, including 385 Fortune Global 500 companies. Chengdu has been approved to host 23 foreign consular missions, making it China's third-largest consular hub after Shanghai and Guangzhou. These developments have established a solid foundation for cooperation in various fields such as commerce, investment, science, technology, health, energy and minerals. We'll leverage our advantages and seize opportunities to promote global exchanges and cooperation. We'll invite domestic and international guests to visit various places in Sichuan and participate in events such as the Belt and Road Conference on Science and Technology and the Western China International Fair. This will connect global resources on a larger scale, in a wider range of fields, and at a deeper level to enhance opening-up and cooperation. Thank you.

Phoenix Satellite Television:

TWG 2025 Chengdu will hold the first torch relay in World Games history, which has attracted considerable attention. Could you share some information about how the torch relay preparations are progressing? Thank you.

Wang Fengchao:

Thank you for your question. I'll address this. As you mentioned, this is the first time in World Games history that a torch relay will be held, and it has attracted significant public attention. Now, let me provide a brief overview.

The one-day torch relay for TWG 2025 Chengdu will take place on July 26 in three Sichuan cities: Chengdu, Deyang and Meishan. A total of 120 torchbearers will cover the 11-kilometer route.

Regarding the torch design, its shape was inspired by a bronze standing figure unearthed from the Sanxingdui site and also resembles a proudly standing bamboo plant. Named "Zhumeng," meaning "Pursuing Dreams," it echoes the torch relay slogan "Join Hands with the World, Ignite Dreams." The Zhumeng torch was officially unveiled on Feb. 27 this year. The design scheme for the supporting components like the cauldron and lanterns has also been determined. Mass production and technical testing of the torch and its supporting components will be completed by early July.

The torchbearer selection process officially began in March. Torchbearers will come from four categories: outstanding athletes and coaches, model workers, citizen representatives and international friends. Special consideration is being given to frontline workers, including delivery personnel, ride-hailing drivers, and sanitation workers. Final selections will be confirmed in June.

Concerning the torch relay locations, after the flame collection and launch ceremony at the Sanxingdui Museum, the torch will be carried through five symbolic landmarks: the Jinsha Site Museum, the Chengdu Research Base of Giant Panda Breeding, the Wuhou Shrine, the San Su Shrine, and Xinglong Lake Wetland Park. Comprehensive route planning and on-site surveys are currently underway.

Moving forward, we will meticulously plan and organize the torch relay to ensure it proceeds safely, smoothly and successfully. Through this relay, we aim to promote the World Games vision and champion the spirit of sportsmanship globally. Thank you.

Hong Kong Bauhinia Magazine:

TWG features many sports events that integrate intelligent technology. Could you tell us more about how this edition of the Games will leverage technology and promote sustainability? Thank you.

Wang Fengchao:

Thanks for your question. I'll take it. We've maintained an unwavering focus on technology empowerment and green, low-carbon development in every aspect of organizing this event. Coordinated efforts across event operations, urban planning and technological innovation have enabled us to implement greener, more digital and more intelligent approaches in key areas including event organization, venue construction and service delivery.

In terms of technology empowerment, we released TWG 2025 Chengdu Technology Empowerment Guidelines and established a supporting action framework. The framework features 14 specific measures focused on targeting key areas, including venue construction and operation, event logistics, citizen engagement and commercialization of outcomes. Based on the technological requirements for hosting, participating in and watching the Games, we collected more than 230 tech products from universities, research institutes and companies, compiling them into the Technology Empowerment Product Manual for the Chengdu World Games. Through a series of events such as the "Sci-Tech Sichuan - Smart Chengdu" robotics showcase and low-altitude economy special showcases, we've built a platform to support the transformation of scientific and technological achievements. These efforts have enabled the debut of low-altitude economic applications at TWG 2025 Chengdu, including a drone torch relay, aerial couriers and aerial livestream studios. Additionally, 25 robotic products are expected to be deployed across six major scenarios, including torch relay demonstrations, smart guided tours and sports presentations, further enhancing the spectator experience.

In terms of green development, we released TWG 2025 Chengdu Green and Low-Carbon Event Action Guide and established a green and low-carbon action framework. The framework outlines nine actions and 26 specific measures centered on low-carbon energy, venues and transportation. We've also hosted the "Green Intelligence Integration for a Sustainable World Games" series of green and low-carbon supply-demand matching activities, establishing a collaborative platform connecting government and businesses. The initiative encourages companies to support the green and low-carbon goals of the Games by showcasing eco-friendly products and donating carbon credits and quotas, thereby helping to reduce the event's carbon emissions. Additionally, we launched the "Low-Carbon World Games" section on our official online platform and created a database of enterprises donating carbon credits. The initiative promotes low-carbon applications such as green electricity, sustainable transportation and low-carbon venue construction methods. Throughout the entire process, we've made comprehensive efforts to conduct carbon inventory, verification and carbon neutrality assessments, with the goal of hosting the first carbon-neutral World Games. Thank you.

Zhou Jianshe:

One last question, please.

Beijing Radio and Television Station:

We understand that dozens of test events have been organized since last year to ensure the main event runs smoothly. Could you please provide more details about how these test events were conducted? Thank you.

Yang Xingping:

Thank you for your question. Organizing test competitions is a crucial part of preparing for sporting events. Last year, we organized 24 test competitions across 20 sports, with a focus on promoting World Games events and training competition teams. These included the World DanceSport Competition, the International Breakdance Championship and the China Canoe Marathon Open. In March this year, we also held a series of tournaments in three events: freediving, lifesaving and boules.

These activities tested both the competition organization's software and hardware in three areas: First, we tested venue facilities, equipment, award ceremonies, and other elements and processes according to official competition standards. Second, we tested the management and operational mechanism that uses venues as organizational units to coordinate various working groups in delivering event services. Third, we tested systems requiring international partner participation in joint debugging and testing, such as timing, scoring and results processing. Overall, these tests have achieved their intended goals of training our personnel, evaluating facilities, optimizing processes and improving capabilities, laying a solid foundation for the successful hosting of the official competition.

Looking ahead, we'll organize simulation exercises throughout all competition areas, leveraging various event levels and types. These exercises will be complemented by customer group simulations and tabletop drills to thoroughly assess venue command systems, operational resilience and emergency response capabilities, ensuring the smooth execution of the official competition. Thank you!

Zhou Jianshe:

That concludes today's press conference. Thank you to our three speakers and to all the journalists for joining us. Goodbye, everyone!

Translated and edited by Liu Caiyi, Wang Xingguang, Xu Kailin, Liao Jiaxin, Lin Liyao, Li Xiao, Zhang Tingting, Mi Xingang, Wang Qian, Liu Qiang, Li Huiru, Wang Yanfang, Ma Yujia, Wang Wei, Huang Shan, Fan Junmei, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

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

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

Chairperson:

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

Date:

April 14, 2025

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we will conduct a routine release of economic data. We have invited Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC), to introduce China's import and export performance in the first quarter of this year and answer your questions. Also attending today's press conference is Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC.

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

Wang Lingjun:

Good morning. I will start by briefing you on the import and export performance in the first quarter of this year, and then my colleague Mr. Lyu and I will answer your questions.

Since the beginning of this year, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, China has adhered to the general principle of pursuing progress while maintaining stability, fully and faithfully applied the new development philosophy, accelerated efforts to foster a new pattern of development, and solidly promoted high-quality development. Both existing policies and incremental policies have continued to exert their effects. The economy has got off to a steady start, and the development trend is positive and dynamic. China's foreign trade has withstood pressure, achieving growth in scale and improvement in quality. Customs statistics show that in the first quarter of this year, China's foreign trade in goods stood at 10.3 trillion yuan, up 1.3% year on year. Exports were 6.13 trillion yuan, up by 6.9%, and imports were 4.17 trillion yuan, down by 6%. Specifically, there were four main features:

First, the growth rate of imports and exports rebounded month by month. In the first quarter, China's imports and exports reached a record high for the same period, exceeding 10 trillion yuan for eight consecutive quarters. Looking at the monthly trends, imports and exports fell by 2.2% in January, remained basically flat in February, and grew by 6% in March.

Second, the proportion of private enterprises in imports and exports increased. In the first quarter, the imports and exports of private enterprises in China reached 5.85 trillion yuan, an increase of 5.8%, accounting for 56.8% of the total import and export value, an increase of 2.4 percentage points compared with the same period last year. During the same period, the imports and exports of foreign-invested enterprises reached 2.99 trillion yuan, an increase of 0.4%, accounting for 29% of the total import and export value.

Third, the growth rate of imports and exports with countries participating in the Belt and Road Initiative (BRI) was higher than the overall level. In the first quarter, China's imports and exports with BRI partner countries reached 5.26 trillion yuan, increasing by 2.2%, which was 0.9 percentage points higher than the overall growth, accounting for 51.1% of the total import and export value. Among these, imports and exports with ASEAN countries reached 1.71 trillion yuan, up 7.1%.

Fourth, the imports and exports of mechanical and electrical products grew rapidly. In the first quarter, China's imports and exports of mechanical and electrical products reached 5.29 trillion yuan, an increase of 7.7%. Among these, exports of goods such as household appliances, notebook computers and electronic components grew relatively quickly; and imports of parts and components of automatic data processing equipment, ships and offshore engineering equipment also grew relatively quickly.

Generally speaking, in the face of increasing external difficulties and challenges, local governments, various departments and a large number of foreign-trade operators actively responded, promoting a stable start for China's imports and exports in the first quarter.

Recently, the United States government has wantonly imposed tariffs, which will inevitably have a negative impact on global trade, including that between China and the U.S. China has resolutely taken necessary countermeasures in a timely manner. This is not only to safeguard its legitimate rights and interests but also to defend international trade rules and international fairness and justice. China will unswervingly promote a high level of opening up and carry out mutually beneficial economic and trade cooperation with other countries.

Customs authorities will resolutely implement the decisions and deployments of the Party Central Committee, firmly uphold their duties, strictly implement all countermeasures against the U.S. in accordance with the law, and safeguard national sovereignty, security and development interests. We will accelerate the construction of smart customs and international cooperation, innovate customs supervision systems, continuously improve supervision efficiency and service levels, facilitate enterprises' customs clearance, and promote the stable development of foreign trade with more optimized supervision, higher security, greater convenience and stricter anti-smuggling efforts. Thank you.

Xing Huina:

Thank you, Mr. Wang, for your introduction. We will now move on to the Q&A session. Please raise your hand if you have a question. Please identify your news outlet before asking your question.

Yicai:

You just mentioned that imports and exports achieved stable growth in the first quarter. Could you please share some highlights and positive developments in China's foreign trade sector so far this year? Thank you.

Wang Lingjun:

Since the beginning of this year, despite weak global economic momentum, rising trade protectionism and ongoing geopolitical tensions, China's foreign trade has achieved steady growth in import and export volumes, while the quality of development has also continued to improve. These positive changes are reflected in four key aspects:

First, the vitality of business entities has further increased. In the first quarter, the number of Chinese enterprises engaged in import and export reached 529,000, an increase of 33,000 compared to the same period last year. Among them, the number of private enterprises reached a historical high of 455,000, accounting for 86.1% of all enterprises engaged in import and export during the same period.

Second, the scope of international cooperation has further expanded. In the first quarter, China's trade with traditional markets remained resilient, with imports and exports to Germany, Spain and the United Kingdom registering strong growth. The high-quality joint construction of the Belt and Road continues to deepen and deliver concrete results. The growth rate of imports and exports with BRI partner countries was 0.9 percentage points higher than the overall rate, including a 7.1% increase in trade with ASEAN and a 6.9% increase with the five Central Asian countries.

Third, the regional layout for opening up has been further optimized. China's central and western regions have continued to leverage their strengths, undertake industrial transfers in an orderly manner, and further unleash their foreign trade potential. In the first quarter, imports and exports in China's central and western regions reached 1.84 trillion yuan, an increase of 8.7%, which was 7.4 percentage points higher than the national average growth rate. Their share of the country's total foreign trade also rose by 1.2 percentage points year on year, reaching 17.9%.

Fourth, foreign trade now features more innovation and new growth drivers. New quality productive forces have accelerated development, cultivating a number of upstream and downstream enterprises in the equipment industry chain with strong supporting capabilities and excellent product performance, thus promoting China's foreign trade toward more new growth drivers. In the first quarter, imports and exports of equipment manufacturing products increased by 7.6%, accounting for nearly half of China's total foreign trade. New domestic products are constantly being launched, and the export scale of homegrown brands has increased year by year, with their share continuing to rise. In the first quarter, exports grew by 10.2%, and their proportion of the total export value further increased to 22.8%. Thank you.

Dazhong Daily:

In recent years, ASEAN has maintained its position as China's largest trading partner. Could you provide some details about China's imports and exports with ASEAN in the first quarter of this year? And what are the prospects for future trade between China and ASEAN? Thank you.

Lyu Daliang:

Thank you for your questions. China and ASEAN are close neighbors that have long leveraged their respective resource and industrial structure advantages. Through intensive cooperation and joint efforts, their economic and trade relations have grown increasingly close, with trade complementarity continuing to strengthen. In the first quarter of this year, ASEAN remained China's largest trade partner, with total imports and exports reaching 1.71 trillion yuan, increasing by 7.1% year on year. This accounted for 16.6% of China's overall foreign trade.

China and ASEAN are jointly committed to the integrated development of the regional economy. The close connections between their industrial chains have driven the rapid growth in imports and exports of upstream and downstream products. In the first quarter, manufactured goods accounted for 90.1% of trade between China and ASEAN. Notably, China's exports of flat panel display modules, auto parts and lithium batteries to ASEAN all increased by more than 20%. Meanwhile, China's imports from ASEAN of parts for automatic data processing equipment, printed circuits and textile raw materials continued to grow.

China and the 10 ASEAN countries have a combined population of over 2 billion people, accounting for about one-quarter of the global total. The openness, integration and shared development of both sides have continued to unleash market potential, setting an example of cooperation amid the headwinds facing globalization. Taking agricultural cooperation as an example, ASEAN has been China's largest trading partner for agricultural products for eight consecutive years since 2017. In the first quarter of this year, China's imports of agricultural products from ASEAN reached 52.65 billion yuan, increasing by 13.8%, while exports to ASEAN were 37.92 billion yuan, up by 1.4%. The advantageous agricultural products of both sides have met each other's diverse needs.

We have made steady progress in building infrastructure connectivity with ASEAN, resulting in smoother trade exchanges and turning both sides' resource strengths into tangible economic gains. In the first quarter of this year, China's imports and exports with ASEAN via rail, road, water and air transportation increased by 37%, 23.2%, 5.8% and 16.4%, respectively. Since its launch more than three years ago, the China-Laos Railway has operated more than 50,000 cargo train services. Meanwhile, rail-sea intermodal routes along the New International Land-Sea Trade Corridor enable seamless transfers, allowing cargo to move directly between ship and train without delay.

China and ASEAN are connected by mountains and rivers and share close cultural ties with a long history of friendly exchanges. The Version 3.0 China-ASEAN Free Trade Area upgrade negotiations have substantially concluded. Moving forward, both sides will expand mutually beneficial cooperation in emerging areas such as the digital economy, green economy, and supply chain connectivity; strengthen alignment in standards and rules; and jointly promote trade facilitation and inclusive development. We are confident that, through the joint efforts of China and ASEAN countries, we will achieve new and greater progress in economic and trade cooperation. Thank you.

CMG:

This year's government work report emphasized the importance of "vigorously encouraging foreign investment." Just now, it was also noted that imports and exports of foreign-invested enterprises continued to grow in the first quarter. Could you please provide more details? Thank you.

Wang Lingjun:

Thank you for your question. Foreign-invested enterprises play a key role in Chinese modernization. They are major contributors to China's reform, opening up, and innovation efforts, and serve as vital links connecting China with the world and integrating it into the global economy. According to statistics, foreign-invested enterprises have accounted for roughly one-third of China's total foreign trade over the past five years.

In the first quarter of this year, more than 67,000 foreign-invested enterprises recorded import and export activity, marking the highest level for this period in the past three years. Their total trade reached 2.99 trillion yuan, maintaining growth for the fourth consecutive quarter. Notably, foreign-invested enterprises accounted for over 40% of China's imports and exports of high-tech products, including electronic information products, biopharmaceuticals and medical instruments.

At present, China has fully lifted foreign investment restrictions in the manufacturing sector, while the green, digital and intelligent transformation of industries is accelerating. Meanwhile, the country continues tofoster a first-rate business environment that is market-oriented, law-based, and internationalized. These efforts will help foreign-invested enterprises fully leverage their strengths in China and gain a competitive edge in the global market. On March 28, President Xi Jinping met with representatives of the international business community and delivered an important speech that greatly boosted confidence among foreign investors. TheChina Development Forum 2025 was recently held in Beijing, attracting 86 official representatives from multinational companies across 21 countries. The number of first-time attendees from multinational companies also reached a record high, reflecting widespread confidence among foreign-invested enterprises in China's growth prospects. Thank you.

Phoenix TV:

Mr. Wang, you mentioned that China's foreign trade advanced despite many difficulties and challenges in the first quarter, with exports still managing to grow by 6.9%. Could you share what factors are driving the growth in exports? Given the increasing pressures from tariff disputes and other challenges, what are the expectations for exports in the coming period? Thank you.

Wang Lingjun:

Thank you for your questions. Indeed, China's exports showed remarkable resilience under pressure in the first quarter. I'd like to invite Mr. Lyu to provide a detailed analysis of this.

Lyu Daliang:

Thank you for your questions. Allow me to share some details about China's export performance in the first quarter.

In the first quarter, China's export volume exceeded 6 trillion yuan, achieving a robust year-on-year growth of 6.9%, demonstrating strong resilience in the face of external pressures. In our view, this performance can be attributed to several factors, including demand, innovation and competitiveness.

In terms of international market demand, the average PMI in the manufacturing sector in the first quarter was 49.9%, higher than in both the fourth quarter of 2024 and the same period last year. In March, the manufacturing sectors in both Asia and Africa expanded. Customs data shows that China's exports to these two regions increased by 7.8% and 12.5%, respectively, with both growth rates exceeding the overall average. Consumer spending in the EU and the U.K. increased quarter on quarter, and their consumer confidence indexes remained relatively stable, helping to drive demand for our products in these markets. In the first quarter, China's exports to more than 170 countries and regions all registered growth.

In terms of domestic industrial innovation, China's manufacturing sector is showing strong momentum in its transition toward higher-end, smarter and greener production. For example, China's exports of ships and marine engineering equipment have grown for four consecutive years, with a 10.8% increase in the first quarter. Exports of specialized equipment have risen for nine straight years, growing by 16.2% in the first quarter. China's new energy products continue to play an important role in the global green transition. In the first quarter, exports of wind turbines, lithium batteries and electric vehicles increased by 43.2%, 18.8% and 8.2%, respectively.

At the same time, many foreign trade operators have responded quickly to the diverse demands of the global market. By leveraging well-developed supply chains, rapid transformation and flexible operations, some traditional industries are introducing new, popular and bestselling products, breathing fresh life into their competitiveness. Industries such as toys and apparel have adopted a "small-batch, quick-response" model, allowing them to swiftly fulfill orders. This has shortened delivery times from about one month to less than a week and significantly boosted international competitiveness. In the consumer goods sector, trendy Chinese products are continuously emerging and gaining widespread recognition and praise around the world. In the first quarter, China's exports of sporting goods to the EU and cosmetics to Southeast Asia both posted double-digit growth.

At present, China's exports are indeed facing a complex and challenging external environment, but the sky isn't falling. In recent years, China has actively developed diverse markets and deepened cooperation on industrial and supply chains with partners around the world. That approach has not only supported the development of other countries but has also strengthened China's own resilience. Meanwhile, China's vast domestic market continues to serve as a key pillar of support. We will remain steadfast in managing our own affairs and will navigate external uncertainties with stability at home. Thank you.

Bloomberg News:

My first question is, the WTO early this month announced they are lowering the forecast for global trade volume growth this year to minus 1% from their previous forecast 3% growth. How do you expect this, or do you expect this to also fall through the Chinese export growth? And my second question is how will they change the de minimis regulation that the U.S. has announced that affect China's e-commerce growth?

Wang Lingjun:

Thank you for your questions. As I mentioned earlier, the U.S. government has recently imposed arbitrary tariffs globally, running counter to international trends. This move has been widely opposed by affected countries and criticized by international organizations. The WTO immediately issued a statement saying that the U.S. approach will significantly impact the outlook for global trade and economic growth, leading to a contraction in global goods trade volume. The organization also called on member countries to stand united and engage in constructive dialogue through the WTO platform to seek cooperative solutions. China will work with all parties to uphold genuine multilateralism, jointly safeguard the multilateral trading system with the WTO at its core, and defend international fairness and justice. Thank you.

Elephant News:

We have noticed that imports and exports by private enterprises maintained rapid growth in the first quarter. What were the specific highlights? The symposium on private enterprises held earlier this year emphasized that private enterprises should unswervingly follow the path of high-quality development. What measures have customs authorities taken to support the development of private enterprises? Thank you.

Wang Lingjun:

Thank you for your question. Private enterprises are the largest contributors to China's foreign trade. Their vitality drives the dynamism of the country's foreign trade sector. In the first quarter, imports and exports by private enterprises grew by 5.8%, outpacing the national growth rate by 4.5 percentage points. Their share of total trade rose to 56.8%. Along with this rapid growth in trade volume, the quality of development is also steadily improving.

In the first quarter, private enterprises recorded import and export growth with nearly 180 countries and regions worldwide. In emerging markets, imports and exports with ASEAN, Africa and Latin America increased by 7.4%, 9.6% and 5.2%, respectively. In traditional markets, trade with the EU grew by 7.1% and with Japan by 4.8%.

At the same time, private enterprises have become an important force in China's technological innovation. From low-cost, highly intelligent AI open-source models to robotic dancers at the CMG Spring Festival Gala, private enterprises have demonstrated a vigorous spirit of innovation. You may recall that during the Spring Festival Gala, robots performing the yangko dance alongside humans captured widespread attention, creating a stunning blend of visual artistry and technology.

In the foreign trade field, private enterprises set a new record in the first quarter for the imports and exports of high-tech products, reaching nearly 1 trillion yuan and maintaining their position as the largest import-export entities. Among these, exports of industrial robots grew by 67.4% and exports of high-end machine tools increased by 16.4%. Imports of high-end equipment rose by 25.6%, while imports of surgical robots jumped by 47.5%.

Customs has firmly implemented the "two unwavering commitments": unwaveringly consolidating and developing the public sector, and unwaveringly encouraging, supporting, and guiding the development of the non-public sector. We have deepened reforms as well as improved regulatory systems. It has also actively supported private enterprises in stabilizing expectations, securing orders and expanding their markets. Take AEO certification, commonly known as the "green pass" for global trade, as an example. Customs continues to strengthen efforts to support key industries, enabling more private companies to benefit from faster customs clearance and lower trade costs. In the first quarter alone, the number of private enterprises obtaining AEO certification increased by 116 to reach a total of 2,670. During the same period, exports and imports by AEO-certified private enterprises grew by 8.6% and 8.5%, respectively — 1.6 and 5 percentage points higher than the overall growth rate for private enterprises. Thank you.

Xinhua Finance:

The data just presented shows a decline in imports this quarter. What were the main reasons for this? How do you view future imports? Thank you.

Lyu Daliang:

Thank you for your questions. The change in imports in the first quarter was the result of multiple factors, with some products increasing and others declining. In particular, due to falling international bulk commodities prices, the average import prices of iron ore and coal dropped by more than 20% in the first quarter, while the average import prices of crude oil and soybeans fell by 5.7% and 16.6%, respectively. These price factors lowered the overall import growth rate by 2.6 percentage points. In addition, the first quarter of this year had two fewer working days than the same period last year, which also reduced the import growth rate by about 2 percentage points.

Looking more closely, rapid growth in domestic industrial production drove an increase in imports of components and equipment. In March, China's manufacturing PMI remained in expansionary territory, signaling continued momentum in the sector's recovery. Notably, industries such as computer, communications and electronic equipment, as well as rail, shipbuilding and aerospace equipment, saw production and demand pick up quickly. As a result, imports of key components and high-tech equipment required by these sectors increased significantly. In the first quarter, imports of automatic data processing equipment and components rose by 95.6%, while imports of shipbuilding and marine engineering equipment increased by 52.5%.

China's consumption market also showed steady growth, contributing to an increase in imports of consumer goods. Booming domestic consumption during the Spring Festival highlighted the vitality of China's consumer sector. In the first quarter, imports of certain consumer products increased, with edible oil rising by 12.1% and fresh and dried fruits up 8.3%.

China is the world's largest manufacturing country and the second-largest consumer market, with a complete industrial system and strong supporting capabilities. With a population of over 1.4 billion and more than 400 million middle-income people, various consumption scenarios are flourishing. Market demand is strong, both from industrial production and from consumer spending. In particular, China remains committed to high-level opening up, steadily expanding its independent and unilateral openness while actively increasing imports and sharing development opportunities with countries around the world. China has maintained its position as the world's second-largest importer for 16 consecutive years, with an average annual growth rate of 5.4%. The country's share of global imports has steadily risen from 7.9% to 10.5%. Both now and in the future, there is significant potential for import growth in China, and the country's vast market continues to present major opportunities for the world. Thank you.

Economic Herald:

This year marks the 50th anniversary of the establishment of diplomatic relations between China and the European Union. Could you provide an update on China-EU imports and exports in the first quarter? What is your outlook for trade between China and the EU? Thank you.

Wang Lingjun:

Thank you for your questions. China and the EU are each other's most important trading partners, with bilateral trade growing from $2.4 billion at the beginning of diplomatic relations to the current $780 billion. In the first quarter of this year, China's imports and exports with the EU reached 1.3 trillion yuan, up 1.4% and equivalent to over 10 million yuan in trade every minute.

The Chinese and European economies are highly complementary, with closely intertwined interests driving positive development in bilateral trade. Three key sectors highlight this trade relationship, starting with consumer goods. In the first quarter, 72% of bags and suitcases, 51.7% of passenger cars, and 42.2% of cosmetics imported by China came from the EU. Meanwhile, China's exports of electronics and electric appliances, clothing and apparel accessories, and daily chemical products to the EU increased by 7.7%, 3% and 16.1%, respectively. Looking at the high-tech sector, China imported 64 billion yuan of high-end equipment from the EU in the first quarter, up 30.4% and accounting for 32.9% of China's total imports in this category. Meanwhile, China's exports of industrial robots and high-end machine tools to the EU increased by 81.9% and 11.7%, respectively. Finally, in the agricultural sector, China's imports of beer and pork from the EU increased by 25.7% and 17.5%, respectively, in the first quarter. Meanwhile, China's exports of aquatic products and dried and fresh fruits to the EU rose 34.4% and 10.8%, respectively.

China and the EU together account for more than one-third of the global economy. Both advocate for economic globalization and trade liberalization and firmly support the World Trade Organization. The two sides share broad common interests and have enormous potential for cooperation in many areas. Amid increasing global economic instability and uncertainty, China and the EU are engaging in close communication and cooperation to jointly maintain free and open trade and investment while ensuring stable and smooth global industrial and supply chains. This cooperation will bring greater stability and certainty to both economies and the global market. Thank you.

The Poster News APP:

How did China's imports and exports with Belt and Road partner countries perform in the first quarter? What new measures does the GACC have to promote the BRI? Thank you.

Lyu Daliang:

Thank you for your questions. In the first quarter, China's imports and exports with countries participating in the BRI reached 5.26 trillion yuan, up 2.2% year on year, hitting an all-time high for the same period. After surpassing 50% of China's total foreign trade for the first time last year, this share continued to rise in the first quarter of this year, reaching 51.1%.

A series of landmark projects and "small but beautiful" projects that are practical and benefit people's livelihoods have taken root in Belt and Road partner countries, stimulating trade in related products. China has also deepened industrial cooperation with participating countries. In the first quarter, intermediate goods accounted for 65.1% of imports and exports between China and participating countries. China has continued to expand agricultural cooperation with participating countries. In the first quarter, China's export of pesticide formulations to these nations increased by 15.5%, while agricultural machinery exports rose 37.2%. Imports of poultry meat from these countries grew 32.9%, and imports of dried and fresh fruits increased by 8.5%. China is actively pursuing practical cooperation with Belt and Road countries in sectors affecting daily life. In the first quarter, Chinese exports of pharmaceuticals and drugs to these countries increased 14.6%, while exports of medical services and equipment rose 5.1%. China continues supporting participating countries in improving their transportation and energy infrastructure. In the first quarter, Chinese exports of rail transportation equipment to these nations increased 10.7%, electric motors and generators rose 17.4%, and wind power generators jumped 67.4%.

Currently, the BRI is the most extensive and largest international cooperation platform in the world. Participating countries account for more than 40% of global GDP and over 50% of global exports, with growing influence and representation in global governance. The BRI, as a path toward prosperity, openness and innovation, has effectively unleashed development potential across participating countries, bringing tangible benefits to their economies and improving people's lives.

This year, the GACC will continue to be guided by the eight major steps of high-quality Belt and Road cooperation, focusing on participating countries, actively promoting the "Smart Customs" partnership program, and deepening institutional cooperation with partner countries on customs inspection and quarantine. We will continue to strongly support the development of projects such as the China-Europe Railway Express, the New International Land-Sea Trade Corridor, and the Maritime Silk Road, continuously advancing customs clearance facilitation and security, and promoting the deepening and solidification of high-quality BRI cooperation. Thank you.

Market News International:

Trade tensions between China and the U.S. have escalated recently. What specific impact will this have on China-U.S. trade? Is there a possibility of the two nations decoupling? How will China respond?

Wang Lingjun:

Thank you for your questions. On April 9, the Chinese government released a white paper titled China's Position on Some Issues Concerning China-U.S. Economic and Trade Relations. You may have read this document. This white paper, supported by extensive facts and data, demonstrates that the core of China-U.S. economic and trade relations is mutual benefit. It reflects economic laws at work and possesses strong internal momentum. In the first quarter of this year, despite disruptions and impacts from the U.S. government's reckless and arbitrary tariffs, China-U.S. bilateral trade still grew, reaching a total import and export volume of 1.11 trillion yuan, a 4% increase.

The U.S. has imposed arbitrary tariffs on all trading partners, including China, under various pretexts. As previously noted, this will inevitably have a negative impact on global trade, including China-U.S. trade.

The U.S. side's so-called "reciprocal tariffs" overturn the existing international economic and trade order by prioritizing U.S. interests over the shared interests of the international community. This constitutes typical tariff bullying, represents a serious violation of WTO rules, severely undermines the rules-based multilateral trading system, and significantly destabilizes the global economic order.

There are no winners in a trade war, and protectionism is no path forward. The U.S. government's actions have sparked widespread opposition worldwide. China has taken firm countermeasures and will continue working with all parties to jointly oppose U.S. tariff bullying and hegemonic behavior. It will also work to defend the multilateral trading system and economic globalization. We urge the U.S. side to immediately correct its misguided actions and resolve trade disputes through equal dialogue based on the principle of mutual respect. Thank you.

Zhonghongwang.com:

I am particularly interested in the export data from China's central and western regions for the first quarter. What are the key factors driving import and export growth in these regions? What role did the first quarter play in sustaining stable growth in the nation's overall import and export performance? Thank you.

Wang Lingjun:

The achievements of the central and western regions in the first quarter are very impressive. Mr. Lyu, could you please comment on this?

Lyu Daliang:

Thank you for your questions. I will now provide a detailed overview of the foreign trade in the central and western regions during the first quarter. In terms of scale, the central and western regions recorded import and export values of 1.84 trillion yuan in the first quarter, marking an impressive 8.7% increase. This growth was primarily driven by four main factors:

First, the foreign trade sector has continued to improve in quality and undergo upgrading. The central and western regions are using technological innovation to drive industrial innovation. They're promoting upgrading, improving quality and enhancing efficiency in traditional industries. In the first quarter, exports of mechanical and electrical products from the central and western regions reached 783.21 billion yuan, up 17.4% year on year. This export growth rate outpaced the national average for similar products by 8.7 percentage points, accounting for 64.7% of the regions' total export value. Among these, exports of automatic data processing equipment and parts, mobile phones, and automobiles grew by 8.4%, 21.4% and 9.3%, respectively. 

Second, open ports are facilitating development. Last year, Guanlei Port in Yunnan province and Ezhou Huahu International Airport Port in Hubei province passed opening acceptance inspections, while the Biedieli Port in Xinjiang Uygur autonomous region was approved for operation. The water, land and air transport systems in China's central and western regions have been further enhanced by these developments. I'd like to highlight Ezhou Huahu International Airport, Asia's first professional cargo hub airport and the world's fourth. In the first quarter of this year, customs processed 77,000 metric tons of goods imported and exported through Huahu Airport, marking a fourfold increase. Additionally, Youyiguan Port, or Friendship Pass, at the China-Vietnam border is developing China's first smart cross-border port. Supported by three intelligent platforms, it has reduced cargo inspection waiting time by 20% and quarantine processing time by 3.5 hours. The port is expected to further lower clearance costs and significantly boost efficiency. In the first quarter, Youyiguan Port saw an 18.4% increase in import and export volumes.

Third, progress on major transport corridors is picking up pace. The New International Land-Sea Trade Corridor has achieved seamless land-river-sea connectivity. The China-Europe Trans-Caspian Express has begun operations, while the "Tianfu" cross-border freight truck service to Central Asia is now underway. Together, these developments have established multiple open routes characterized by internal-external synergy and mutual benefits in both directions. In the first quarter, the central and western regions recorded imports and exports worth 187.19 billion yuan via the New International Land-Sea Trade Corridor, representing a 17.3% increase.

Fourth, open cooperation with neighboring countries continues to expand. Border provinces in China's central and western regions have fully capitalized on their geographical advantages by strengthening connectivity and interconnection networks with neighboring countries, while accelerating industrial and supply chain cooperation. In the first quarter, imports and exports between the central and western regions and neighboring countries increased by 7.7%. Among them, imports and exports to Vietnam and Kyrgyzstan increased by 10% and 4.8%, respectively, accounting for 35.6% and 54.8% of China's total trade value with Vietnam and Kyrgyzstan during the same period. Recently, the Central Conference on Work Related to Foreign Affairs with Neighboring Countries was held in Beijing, where it was announced that China will further deepen its open cooperation with its neighbors. Thank you.

CNBC:

I have two questions. In order to reduce costs, footwear and luggage exporters to the U.S. have said they might shift some of their production capacity from China to other countries. How much do products like shoes account for in China's total exports? What is the difference from that of high-tech products? And what is your outlook on this? My second question is regarding China Customs' recent announcement that it will suspend import permits for Darling Ingredients due to the presence of salmonella. The company said there was no salmonella and that it did not sell many products to China. What is your response to that? Thank you.

Lyu Daliang:

Let me start by answering your first question. Customs statistics are compiled based on the "Harmonized Commodity Description and Coding System," commonly referred to as the HS Code, formulated by the World Customs Organization (WCO). Regarding the products like shoes and high-tech products you mentioned, I am not sure about the specific HS Code range. After the meeting, if you can provide specific commodity codes, we can assist in the inquiry. Of course, you can also conduct self-service inquiries on our website.

Your second question concerns salmonella, an issue that involves food safety. Recently, China Customs detected salmonella in poultry meat and bone meal imported from the U.S., and in accordance with laws and regulations suspended the export permits to China of three enterprises involved. Customs also issued an announcement and informed the relevant U.S. authorities of the non-conforming products. The enterprise you just mentioned is one of these three enterprises. Chinese customs will, as always, strengthen the inspection and quarantine of imported products in strict accordance with laws and regulations to ensure the safety of imports. Thank you.

China News Service:

This year's "two sessions" emphasized that major economically developed provinces should shoulder greater responsibility in order to successfully accomplish the development targets for the 14th Five-Year Plan. How was the performance of major foreign trade powerhouses in the first quarter of this year? And what are the highlights? Thank you.

Wang Lingjun:

Thank you for your questions. Since the beginning of this year, faced with a severe and complex external environment, major foreign trade provinces and cities have taken on greater responsibilities, leveraged their respective advantages, and played a strong role in supporting and driving economic growth. In the first quarter, the total imports and exports of Guangdong, Jiangsu, Zhejiang, Shanghai, Beijing, Shandong and Fujian reached 7.78 trillion yuan, sustaining the growth momentum, and accounting for three quarters of China's total trade volume. Indeed, they have served as powerhouses assuming major responsibilities. This situation is reflected in three main aspects:

First, they have effectively stabilized the overall foreign trade. Major foreign trade provinces have solid industrial foundations, prominent geographical advantages and vibrant trade entities. In the first quarter, the number of enterprises with substantial import and export achievements reached 422,000, increasing by 6.1%, and accounting for nearly 80% of China's total. At the same time, these provinces have actively expanded international markets, boosting imports and exports with more than 150 countries and regions, with growth rates in 89 countries and regions exceeding the overall level.

Second, they have effectively leveraged their role in inspiring innovation. Major foreign trade provinces have actively cultivated and developed new quality productive forces, accelerating the integration of technological and industrial innovation. In the first quarter, exports of high-tech products by these provinces reached 783.52 billion yuan, up 4.5%, accounting for 71.3% of China's total. Among them, exports of electronic information products, high-end equipment, and biomedicine amounted to 385.71 billion yuan, 236.58 billion yuan, and 30.11 billion yuan respectively, with growth rates of 1.6%, 8.9% and 9.9%, accounting for 66%, 78.4% and 74.8% of China's total.

Third, they have effectively stabilized industrial and supply chains. Major foreign trade provinces imported energy resources, critical components and consumer goods essential to life and production, accounting for a large proportion of China's total imports, and enriching domestic supply. In the first quarter, crude oil and metal ore imported by these provinces accounted for 83.1% and 67.6% of China's total, and imports of electronic components and automatic data processing equipment parts accounted for 78% and 88.1% of China's total. In addition, consumer goods imported by these provinces amounted to 318.42 billion yuan, accounting for more than 80% of China's total. Thank you.

Xing Huina:

We will have one last question.

National Business Daily:

We have noticed that this year's government work report emphasizes that "we will promote Smart Customs development and cooperation to further simplify customs clearance procedures." Could you introduce the latest progress and the next key plans concerning the development of smart customs? Thank you.

Wang Lingjun:

The government work report has indeed put forward requirements for the development of smart customs for two consecutive years. I would like to invite Mr. Lyu to answer this question.

Lyu Daliang:

Thank you for your question. As Mr. Wang just mentioned, the government work report has made arrangements for the development of smart customs for two consecutive years. Over the past year, taking digital transformation and intelligent upgrade as the main paths, the GACC has on the one hand advanced the reform and innovation of supervision systems and the optimization of procedures and on the other hand has actively introduced cutting-edge technologies such as big data and AI, to promote the comprehensive transformation and upgrading of customs supervision services to ensure safety, facilitation and efficiency at the same time and to fully serve the high-quality development of foreign trade and support high-standard opening up.

At present, we have gradually established a smart customs framework system represented by nine major landmark projects, accelerated the construction, application and replication of various business scenario promotions, and made significant progress in safeguarding national security at the borders, facilitating smooth and convenient customs clearance, and promoting convenience for the people and enterprises.

For example, we have developed and applied intelligent gates for health and quarantine monitoring, integrating multiple functions such as temperature monitoring and infectious disease risk monitoring, providing a new seamless customs clearance experience for inbound and outbound travelers. We have increased the application of intelligent image review technology. By using intelligent models, we have achieved intelligent early warning, automatic targeting and precise interception of risks related to the safe entry and trade control of goods and items. This has reinforced China's border security and become a calling card of Chinese customs in the international customs community. We have implemented the model of remote video inspection for imported copper concentrate transported by rail. This approach ensures quality and safety control while enabling precision cargo sorting, effectively alleviating port congestion, improving customs clearance efficiency, and saving logistics costs for enterprises.

This year, in accordance with the arrangements of the government work report, we will further focus on smart customs development and cooperation.

In terms of development, our goal is to achieve overall integration and basic functionality. We will accelerate the development, implementation and application of various operation scenarios, focusing on integration, promote the transformation and upgrading of customs operations and optimization and the redesigning of procedures. This aims to create a new smart customs clearance experience characterized by "seamless clearance, intelligent supervision, minimal interruption and ubiquitous regulatory services."

In terms of cooperation, we will continue to deepen communication and cooperation with the WTO and WCO. We will continuously promote the development of a global online cooperation platform for smart customs, accelerate the creation of the BRICS Customs Demonstration Center, and facilitate more practical cooperation, contributing ideas and solutions to the modernization of global customs. Thank you.

Xing Huina:

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

Translated and edited by Liao Jiaxin, Mi Xingang, Liu Caiyi, Liu Jianing, Xiang Bin, Yan Xiaoqing, Zhang Rui, Xu Kailin, Wang Qian, Fan Junmei, Huang Shan, Li Huiru, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

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

Mr. Wang Haizhou, a member of the Standing Committee of the CPC Xizang Autonomous Regional Committee and director general of the Publicity Department of the CPC Xizang Autonomous Regional Committee

Mr. Xu Zhitao, vice chairman of the People's Government of the Xizang Autonomous Region

Chairperson:

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

Date:

March 28, 2025

Shou Xiaoli:

Ladies and gentlemen, friends from the media, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO) in Lhasa, Xizang autonomous region. Today, we are joined by Mr. Gama Cedain, deputy secretary of the Communist Party of China (CPC) Xizang Autonomous Regional Committee and chairman of the People's Government of the Xizang Autonomous Region; Mr. Wang Haizhou, a member of the Standing Committee of the CPC Xizang Autonomous Regional Committee and director general of the Publicity Department of the CPC Xizang Autonomous Regional Committee; and Mr. Xu Zhitao, vice chairman of the People's Government of the Xizang Autonomous Region. This year marks the 60th anniversary of the establishment of Xizang autonomous region. As we commemorate the emancipation of the 1 million serfs in the region today, the SCIO publishes this white paper "Human Rights in Xizang in the New Era." Through detailed statistics and objective facts, the white paper fully presents the sound development and all-round progress of human rights in Xizang since its peaceful liberation, especially in the new era, highlighting that living a life of contentment is the ultimate human right in Xizang.

Now, I will briefly introduce the main contents of the document. The white paper consists of a preface, main body and conclusion. The main body contains seven sections concerning the protection of specific rights.

First, whole-process people's democracy is extensive, genuine and effective. Xizang has fully implemented regional ethnic autonomy. Citizens' rights to vote and to stand for election, people's rights to be informed and to participate, as well as their rights to expression and oversight are protected in a strict, full and effective manner. The people's status as masters of the region has been better reflected, and is having a greater impact. The people of Xizang enjoy full, extensive, genuine, concrete and effective democratic rights in accordance with the law. Currently, Xizang has instituted 790 outreach offices for deputies to people's congresses, Chinese People's Political Consultative Conference (CPPCC) organizations have been established in all 74 county-level administrative units in the region, and the 12345 government service hotline has been launched to respond to public concerns in a timely manner.

Second, economic and social rights are better protected. Fully and faithfully following the new development philosophy in all fields, Xizang has focused on improving people's lives and strengthening unity in social and economic development. The rights of people of all ethnic groups in Xizang to housing, education, work, health and social security are better guaranteed. Xizang was once a profoundly impoverished area that had the highest incidence and penetration rates of poverty, and the cost and difficulty of eliminating poverty was therefore the biggest. Under the strong leadership of the CPC Central Committee, Xizang followed the guidelines for targeted poverty alleviation and eradication. By the end of 2019, all 628,000 registered impoverished people in the region had been lifted out of poverty. In 2024, the per capita net income of those lifted out of poverty in Xizang increased by over 12.5%.

Third, the protection of cultural rights has seen further improvement. The CPC and the Chinese government attach great importance to protecting, passing down and developing the fine traditional cultures of all ethnic groups in Xizang. They have coordinated the efforts to generalize the use of standard spoken and written Chinese language as well as the study and use of the Tibetan language. They have also improved public cultural services and ensured that the cultural rights of all ethnic groups in Xizang are protected. For example, since 2012, the central government has invested nearly 5 billion yuan ($689.5 million) in developing public cultural services across the region. It is fair to say that cultural prosperity in the region has been raised to new heights.

Fourth, the freedom of religious belief is effectively safeguarded. Xizang protects citizens' freedom of religious belief in accordance with the law, ensuring that religions in China conform to China's realities and remain compatible with socialist society. The sound situation of religious amity and social harmony is obvious to all. In Xizang, multiple religions have coexisted with each other for generations, and different religious groups have lived in harmony. Over 1,700 religious activities are held annually, and every effort is made to satisfy the religious needs of believers.

Fifth, environmental rights are fully and effectively protected. Ecological environment cannot be replaced. Xizang has always prioritized eco-environmental conservation. The region is committed to maintaining harmony between humanity and nature in modernization. It prioritizes eco-environmental conservation and green development and strives to continuously improve eco-environmental governance and protect biodiversity on the Qinghai-Tibet Plateau. Today, Xizang has become one of the regions with the healthiest eco-environment in the world. In 2024, Lhasa ranked first among the 168 key cities in China in terms of air quality.

Sixth, the rights of specific groups are equally protected. In the new era, human rights are enjoyed equally by all in China. Xizang attaches great importance to safeguarding the rights of specific groups, including women, children, the elderly and people with disabilities. It has continued to improve its mechanisms for protecting rights, so that all groups share the opportunity to live a fulfilling life and realize their dreams. For example, in terms of promoting women's development, since the beginning of the new era, Xizang has seen the emergence of outstanding female representatives such as Yudron Lhamo, the first athlete from Xizang to qualify for the Winter Olympics; Tseten Yudron, who claimed two gold medals at the 2025 Asian Winter Games in Harbin; and Kelsang Pedron, the first female pilot of the Tibetan ethnic group in the People's Liberation Army. These were completely unimaginable in old Xizang.

Seventh, the legal protection of human rights has steadily improved. Xizang has deepened the rule of law, integrating respect for and protection of human rights into all aspects of legislation, law enforcement, the judiciary and observance of the law, while resolutely safeguarding social equality and justice. Meanwhile, publicity and education of the socialist system of law with Chinese characteristics, with the Constitution at its core, has been carried out in Xizang. Respecting, learning, abiding by and using the law has become common among people of all ethnic groups.

That's all for my introduction. Next, please welcome Mr. Gama Cedain for his introduction.

Gama Cedain:

Ladies and gentlemen, I'm very pleased to witness the release of the white paper "Human Rights in Xizang in the New Era" with you all. I would like to take this opportunity, on behalf of the CPC Xizang Autonomous Regional Committee and the People's Government of Xizang Autonomous Region and its 3.7 million people of all ethnic groups, to extend a warm welcome to everyone, and express my utmost respect to all friends and people from all walks of life for their care, support and great contributions to the development of Xizang.

This year marks the 60th anniversary of the establishment of the Xizang Autonomous Region, and today marks the anniversary of the democratic reform that ended feudal serfdom in Xizang. Sixty-six years ago, Xizang launched the democratic reform, freeing a million serfs, writing a glorious chapter in the history of human rights. Looking back at the progress made in human rights over the past six decades, and especially since the 18th CPC National Congress in 2012, we have consistently adhered to the leadership of the CPC, which has provided a fundamental guarantee for the long-term stability and high-quality development of the region. Since the peaceful liberation of Xizang, successive central collective leaderships have attached great importance to the work related to Xizang. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has made respecting and protecting human rights an important part of the governance of China, vigorously promoting the high-quality development of various undertakings in the region.

The CPC Xizang Autonomous Regional Committee and the People's Government of the Xizang Autonomous Region have thoroughly implemented General Secretary Xi Jinping's important instructions on the work related to Xizang and the Party's guidelines for governing Xizang in the new era. Focusing on the four major tasks of ensuring stability, facilitating development, protecting the eco-environment and strengthening the borders, we have united and led the people of all ethnic groups in the region to create a national model area for ethnic unity, a leading area for high-quality development of the plateau economy, a national eco-civilization model, and a demonstration zone for strengthening national border and enriching the people. The sense of gain, happiness and security of people of all ethnic groups have been improved.

We have always adhered to a people-centered development approach, achieving historic accomplishments in the rights to subsistence and development of all ethnic groups. Absolute poverty has been historically eradicated. All 74 impoverished counties (districts, cities) have been lifted out of poverty, and all 628,000 registered impoverished people have been lifted out of poverty. People's livelihoods have significantly improved, with the total economic output growing from 70.103 billion yuan in 2012 to 276.494 billion yuan in 2024. The per capita disposable incomes of urban and rural residents have increased from 18,028 yuan and 5,719 yuan to 55,444 yuan and 21,578 yuan, respectively, with the growth rate ranking among the top in the country for 10 consecutive years. The right to life and to health have been effectively ensured. The population has grown to 3.7 million, with average life expectancy rising significantly. The numbers of hospital beds, healthcare professionals and practicing physicians per 1,000 people have increased to 5.9, 8.05, and 3.34, respectively. The rights of specific groups have been equally protected. The maternal and infant mortality rates have dropped to 38.63 per 100,000 and 5.37 per thousand, respectively. The region has 128 elderly care institutions, benefiting 12,971 elderly people. The enrollment rate for compulsory education among school-age children with disabilities has reached 97.15%, and 21,010 registered persons with disabilities have secured employment.

We have always strived to fulfill four main tasks in the region: benefit ethnic unity and progress, safeguard national unity and oppose separatism, improve people's lives and build social consensus, and give people in Xizang a greater sense of gain, fulfillment and security. As a result, comprehensive progress has been achieved in the protection of economic, social and cultural rights in the region. Infrastructure has been constantly improved. Fuxing high-speed trains run across the snowy plateau; the Lhasa-Shigatse Expressway has entered full operation; a "supercharging green corridor" has been built on the Sichuan-Xizang section of the G318 National Highway; the number of air routes has reached 169; four power grids have been built and put into use; and safe drinking water has been made available in rural areas. Education has been made a priority. A 15-year publicly funded education system from kindergarten to high school has been established. Sports-for-all is flourishing. The per capita sports venue area has reached 1.95 square meters. In 2024, we achieved a record 55 gold, 44 silver and 66 bronze medals in domestic and international sports events. Cultural projects benefit the people and improve their well-being. A total of 5,492 performing teams have been established at the administrative village and urban community level. Excellent traditional culture has been effectively inherited, protected and utilized. The study and use of the Tibetan language has been protected by the law.

We have always regarded eco-environmental protection on the Qinghai-Xizang Plateau as a major task that benefits our future generations and the entire world. The Qinghai-Xizang Plateau has achieved overall carbon neutrality. We have taken a holistic and systematic approach to the conservation and improvement of mountains, waters, forests, farmlands, grasslands and deserts, and promulgated the Regulations on Developing National Eco-Civilization Model in the Xizang Autonomous Region. More than 50% of the region's total land area has been listed under ecological conservation redline protection, and 36% of the region's territory has been designated as nature reserves. The annual proportion of days with excellent or good air quality in key cities and towns reached over 99%. Green and low-carbon development has created new drivers and released new dividends for the region's growth. The installed power capacity reached 9.52 million kilowatts, and clean energy generation reached 19.04 billion kilowatt-hours. The people of all ethnic groups have become voluntary protectors of lucid waters and lush mountains, while directly benefiting from these invaluable assets.

We have made sustained efforts to forge a strong sense of community for the Chinese nation, with people's political rights and civil rights fully developed. The people of all ethnic groups in Xizang have become masters of their own destiny and the region and fully enjoy the rights endowed by the Constitution and the laws. Among the deputies from the Xizang autonomous region delegation to the 14th National People's Congress (NPC), 68% were from ethnic minority groups; and among the deputies to people's congresses in the region, 89.2% are from ethnic minority groups. Freedom of religious belief is safeguarded in accordance with the law. In Xizang, all religions and sects are equal, as are all believers and non-believers. Every effort is made to meet the normal religious needs of believers. All registered monks and nuns are fully covered by social security and health checks. Ethnic equality and unity are increasingly consolidated. We formulated and implemented regulations and plans for the establishment of model areas to promote ethnic unity and progress. At present, seven prefectures (prefecture-level cities), 30 counties (districts, cities), and 54 entities have been designated as national demonstration units for ethnic unity and progress.

We have resolutely safeguarded China's sovereignty, security and development interests. We have explicitly fought against separatist activities, strengthened and innovated social governance, as well as continued efforts in creating a lawful and peaceful society. The sense of security and satisfaction of the people of all ethnic groups in Xizang ranks among the top in the country. After a 6.8-magnitude earthquake in Dingri county this year, we responded promptly and provided the affected people with tents, prefabricated houses, hot meals and warm butter tea as soon as possible, effectively protecting their human rights, thanks to the strong leadership of the CPC Central Committee and the selfless assistance of the people across the country.

Human rights protection is always ongoing and will never end. Next, under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we will continue to meet the new expectations of the people in Xizang for better lives, and work together to write a new chapter in human rights protection within the warm embrace of the big family of the socialist motherland.

On behalf of the Party committee and the government of the Xizang autonomous region, I would like to take the opportunity of this press conference to sincerely invite all of you to visit Xizang, to appreciate the region's beautiful nature and culture, and to experience its new progress in socialist modernization. I sincerely wish you all good health and every success. Tashi delek.

That's all for my introduction. Thank you.

Shou Xiaoli:

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

China Media Group:

Over the past 70-plus years since the peaceful liberation of Xizang, especially in the new era, significant progress has been made in advancing human rights. Could you please introduce the beneficial experiences formed in the process of protecting human rights in Xizang? Thank you.

Gama Cedain:

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

Wang Haizhou:

First, thank you for your concern about this issue. In the new era, under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we have solved long-standing problems and accomplished major tasks, which could not be achieved in the past. All-round progress and historic success have been achieved in advancing human rights across the region. All these thoroughly demonstrate the practical effectiveness of General Secretary Xi's important discourse on respecting and protecting human rights. We have accumulated a series of basic experiences in this process, which can be summarized in the following six aspects:

First, upholding the leadership of the CPC. The CPC has always respected and protected human rights and attaches high importance to human rights development in Xizang. It has carried out concrete and effective measures to advance various rights, and strived to achieve well-rounded development and common prosperity for all people from all ethnic groups in Xizang. It has propelled Xizang to undergo earth-shaking transformations over just a few decades, achieving remarkable progress that would have taken millennia under ordinary circumstances. Xizang's successes provide ample evidence that without the CPC, there would be no People's Republic of China, nor the new Xizang. Only by upholding the leadership of the CPC can the people of Xizang become and remain the masters of their own affairs, and can their fundamental interests be safeguarded and advanced. The songs we are all familiar with, such as "Singing a Mountain Song for the Party," "Emancipated Serfs Sing Proudly" and "Road to Heaven," are all vivid expressions of the heartfelt gratitude and support to the CPC of the people in Xizang.

Second, respecting and ensuring the principal status of the people. "For the people" is the distinguishing feature of the Chinese path of human rights protection. By taking a people-centered approach to human rights, we have boosted local people's enthusiasm, initiative and creativity, and have enabled them to become the dominant participants in, contributors to and beneficiaries of human rights progress in the region. During this year's national "two sessions," 25 NPC deputies from the Xizang autonomous region and 29 CPPCC national committee members living in Xizang gathered public opinions and wisdom, participated in and deliberated on the administration of state affairs, and offered advice and suggestions on the development of the region.

Third, basing our work on Xizang's realities. There is no one-size-fits-all model for human rights development in the world: the one that suits you most will serve you the best. Based on the real conditions in the region, we have adopted a development model with Chinese characteristics that respects Xizang's regional features. This approach allows us to fulfill four main tasks in the region — ensuring stability, facilitating development, protecting the eco-environment, and strengthening the borders — while ensuring that all the people in Xizang have a greater sense of gain, fulfillment and security.

Fourth, focusing on basic human rights, and primarily the rights to subsistence and development. Subsistence is the foundation of all human rights, and living a life of contentment is the ultimate human right. Prioritizing the protection of the rights of people of all ethnic groups in Xizang to subsistence and realization of their rights to development, we are committed to addressing the most pressing and immediate issues that concern the local people most so as to achieve high-quality development.

Fifth, protecting human rights through maintaining security. Taking countering separatist activities and preserving national security as our essential work to safeguard people's well-being, we have ensured sustained and steady social development for Xizang and stable and secure border areas. A safe and stable environment creates favorable conditions and serves as a solid foundation for the development of human rights in the region. 

Sixth, protecting human rights in accordance with the law. The rule of law is the most effective guarantee for human rights. By upholding law-based governance, we have ensured that the authority of the Constitution and the law is maintained. Predicated on the principle that everyone is equal before the law, the regional government has strengthened human rights protection throughout the process of legislation, law enforcement, judicature, and the observance of the law, as part of its efforts to provide legal protection for human rights and defend social fairness and justice in the region. Thank you.

China News Service:

On this trip to Xizang, I have seen the prosperity and development of Lhasa and its beautiful scenery, but I also experienced altitude sickness caused by its high altitude and low air pressure. For those who live in Xizang long-term, the unique conditions can have a certain impact on their health. What work has been done to ensure the people's health? Thank you.

Gama Cedain:

I'd like to invite Mr. Xu to answer your question.

Xu Zhitao:

Thank you for your question. As the reporter mentioned, Xizang's high altitude means that people can be prone to some chronic diseases and altitude-related illnesses. The CPC Central Committee attaches great importance to the health of the people in Xizang, and called for the establishment of plateau medical research centers and national plateau disease medical centers in relevant documents. General Secretary Xi Jinping also emphasized at an important meeting the need to develop and promote new medical devices and technologies suitable for high-altitude regions. The regional Party committee and government have implemented the requirements of the central authorities and carried out work in the following several aspects:

First, we strengthened overall planning. In response to prominent problems such as the frequent occurrence of high-altitude diseases, relatively underdeveloped diagnosis and treatment capabilities as well as people's imbalanced dietary habits, the regional Party committee made deployment on implementing eight health actions and introduced a series of specific measures to advance the Healthy Xizang Initiative.

Second, we continuously improved the layout of medical resources. Given Xizang's vast, sparsely populated terrain, we have invested heavily to establish a five-tiered health service network at the region, prefecture, county, township and village levels. Local patients can now receive effective treatment for over 400 major diseases within the region, over 2,400 moderate diseases within the prefecture-level administrative units where they live, and most minor diseases at township-level hospitals. Additionally, by using smart medical means, the "internet plus health care" initiative was advanced to ensure remote medical services reach all public hospitals at and above the township level. 

Third, we enhanced the capacity for guaranteeing health services. From 2015, 203 hospitals from 17 paired-up provinces and municipalities directly under the central government selected and dispatched more than 2,000 experts to work in teams in Xizang's health system at various levels, helping to train local health care professionals and improve diagnosis and treatment capability in the region. With national support, we have actively developed new medical and health care technologies and devices suitable for the high-altitude environment. We have established the National Traditional Chinese Medicine Center (Tibetan Medicine) and a national regional medical center. In 2025, the annual health check-up subsidy for local people will increase to 164 yuan per person, basically achieving full coverage of health examination expenses for both urban and rural residents. Dietary guidelines for residents of high-altitude areas have been released. Since its peaceful liberation in 1951, the population of Xizang has increased from approximately 1 million to 3.7 million. The maternal and infant mortality rates have dropped significantly, and the average life expectancy has reached its highest level in history. Thank you.

Rudaw Media Network:

I have a question: What measures have been taken to preserve Tibetan cultural identity and language while promoting economic development in this beautiful region?

Gama Cedain:

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

Wang Haizhou:

Thank you for your attention to this issue. The culture of Xizang is part of Chinese culture. We have consistently upheld principles and policies that support the protection and development of the rich cultural traditions of areas with large ethnic minority populations. In particular, since the 18th CPC National Congress, efforts to preserve and promote Xizang's fine traditional culture have been unprecedented.

First, our efforts to protect and preserve intangible cultural heritage have yielded remarkable success. The central and regional governments have made significant investments to support the protection of Xizang's intangible cultural heritage. Notably, we now have three elements listed on the UNESCO Representative List of the Intangible Cultural Heritage of Humanity: the Gesar epic tradition, Tibetan opera and the Lum medicinal bathing practice of Sowa Rigpa. We currently have 2,800 elements listed in representative catalogs of intangible cultural heritage at all levels, with 1,668 recognized inheritors. As you may know, the total population of Xizang is 3.7 million.

Second, we have comprehensively strengthened the protection, utilization and development of intangible cultural heritage. China has invested nearly 400 million yuan in the preservation and renovation of three major cultural heritage sites: the Potala Palace, Norbulingka and Sakya Monastery. The government plans to invest 300 million yuan over the next decade in protecting and utilizing cultural treasures, including the ancient books and documents of the Potala Palace, such as palm-leaf manuscripts. Currently, in addition to the three world-class intangible cultural heritage elements mentioned earlier, we have 70 national key cultural heritage sites and 661 regional cultural heritage sites. We are currently conducting our fourth cultural heritage census as part of broader national efforts. Once completed, we will further enhance the protection of our cultural heritage. The CPC and the Chinese government have attached great importance to the inheritance and development of the Tibetan spoken and written languages in accordance with the law. As you may have observed, our public facilities, signs and advertisements are all bilingual, featuring both standard Chinese and Tibetan. Similarly, the white paper you're holding today is also presented in both languages. Additionally, today's press conference is being conducted in three languages: Chinese, Tibetan and English. Tibetan is now widely used in broadcasting services, film and television, online platforms, newspapers, textbooks and publishing. Tibetan has also become the first ethnic minority language in China to meet international standards. It is clear that the Tibetan language has never been studied and used as widely as it is now. Thank you.

People's Daily:

Protecting citizens' rights to be informed and to participate is an essential part of realizing whole-process people's democracy. Could you please tell us what specific steps Xizang has taken to protect the rights of people from all ethnic groups to be informed and to participate? Thank you.

Gama Cedain:

I'll answer this question. First, thank you very much for the question. I will provide you with an overview of the efforts we have made in this regard over the years.

China is a socialist country, and the people run the country. The people are the masters of the country. Xizang is no exception in this regard. For the people to truly have a say, they need to understand and participate in both major and minor affairs of their society. Therefore, Xizang has proactively promoted whole-process people's democracy, fully protecting the rights of all ethnic groups to be informed and participate. This ensures that the people's voices are heard across all aspects of decision-making, implementation and supervision by the Party and the government. I will brief you on it from three aspects.

First, the public is informed about both major and minor matters. Transparency in government affairs is an important prerequisite for protecting citizens' rights to be informed, participate, express their views and exercise oversight. With a focus on addressing public concerns, governments at all levels in Xizang have ensured full transparency by proactively disclosing legally required information through government websites, social media platforms, government gazettes and other channels. In 2019, Xizang introduced the Measures of the Xizang Autonomous Region on Transparency in Village Affairs, requiring villagers' committees to fully disclose village information through various channels. These include transparency bulletin boards, villagers' representative meetings, online platforms, broadcasting services, text messages, WeChat, transparency cards and other channels.

Second, people can participate in both major and minor public affairs. Xizang has enhanced the working methods for deputies to people's congresses, enabling them to better engage with the public. Deputies at all levels have been encouraged to maintain strong connections with voters. As a result, people are actively involved in various initiatives, ranging from legislation and planning to community matters like waste sorting and property management. We have also established systems for villagers' representative meetings, urban community residents' congresses, and employees' congresses. Additionally, we have implemented mechanisms for grassroots elections, deliberations, information disclosure, work reporting, accountability and other affairs. This helps ensure that primary-level democracy is more extensive and effective.

Third, we can address and resolve all issues, whether big or small. CPPCC organizations at all levels in Xizang have upheld the principles of Party leadership, the united front, and consultative democracy, promoting broader participation and involvement of people from all ethnic groups and backgrounds in state affairs, thereby addressing the pressing concerns of the public. Xizang is represented by 29 members on the CPPCC National Committee, with 93.1% of these members coming from ethnic minority groups. The 12th CPPCC Committee of the Xizang Autonomous Region consists of 429 members, with 59.91% being non-CPC members. Between 2013 and 2024, the CPPCC Committee of the Xizang Autonomous Region received 5,095 proposals. Of these, 4,920 were officially registered, and all of them were processed to completion, achieving a 100% resolution rate. Thank you.

CNN:

I believe Mr. Gama Cedain is likely aware of the following issue, which has been drawing international attention. In many Tibetan-populated areas, the closure of numerous rural Tibetan-language schools has forced many Tibetan children to attend public boarding schools, where the language of instruction appears to be exclusively Mandarin. We have seen statements from both relevant U.N. experts and the 14th Dalai Lama claiming that this is actually a measure by the Chinese government to intensify the assimilation or Sinicization of Tibetans. They argue that it could cause a significant number of Tibetan children to lose their mother tongue and potentially erode their cultural traditions and identity. My question for you is: Do you have any relevant data or facts that you can share? For example, how many school-age Tibetan children in the Xizang autonomous region have been sent to such boarding schools? What is the proportion? Do they still have opportunities to receive education in the Tibetan language at these schools? Of course, I would also like to hear your response to these concerns and criticisms. Thank you.

Gama Cedain:

Thank you very much for your questions. I believe this is an issue that many journalists are deeply interested in. I would like to invite Mr. Xu to answer these questions.

Xu Zhitao:

Thank you for your questions. This issue has attracted considerable attention from the outside world in recent years. I remember addressing it during a press conference last year. Let me break it down into a few points.

First, boarding school education is provided based on Xizang's actual conditions to meet the needs of Tibetan students. As we all know, Xizang is vast and sparsely populated, particularly in some agricultural and pastoral areas, where children face difficulties in accessing schools. The scattered nature of education in these regions makes it hard to maintain teaching quality. To address this, and in accordance with the country's Compulsory Education Law, boarding services are offered at certain schools. This approach is tailored to Xizang's unique circumstances and aligns with national laws.

Second, and this is what the outside world is most concerned about, our boarding system is actually completely voluntary. Whether students attend as day students or boarding students is entirely up to them and their parents. Even boarding students can go home on weekends and holidays, and their communication with their families remains seamless. In your question, you asked about the numbers. Because it's voluntary, the exact number of day students versus boarding students is dynamic and changes each year, depending on the preferences of students and their parents. In boarding schools, the curriculum that students learn is exactly the same for both day students and boarding students, as they all attend the same school. The only difference is that some students live too far away to commute, so they board at school. Day students live right next to the school. Therefore, the content they learn, including Tibetan language and culture, is identical. In fact, this boarding school system isn't unique to China or its Xizang autonomous region; it's a model adopted in many countries globally. It's an effective way to address the challenges of schooling posed by geographical conditions and other factors. After years of effort, the Xizang autonomous region has made significant progress. While ensuring access to education for Tibetan children, the boarding school system in Xizang has increasingly focused on providing high-quality education, aiming to cultivate students' long-term development capabilities. At school, there are various student clubs, and we also promote the inclusion of intangible cultural heritage into the curriculum. Through initiatives such as strengthening cooperation between families and schools, we support students' physical and mental well-being. These efforts effectively ensure that Tibetan children receive high-quality education, illustrating a significant manifestation of human rights development and progress in Xizang. Thank you.

Guangming Daily:

During my visit to Lhasa, I saw many Tibetan Buddhist monasteries, pilgrims and prayer flags. Additionally, I learned that there are Islamic mosques in Lhasa. Could you explain how the Chinese government ensures religious freedom for all ethnic groups in Xizang? Thank you.

Gama Cedain:

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

Wang Haizhou:

This is probably an issue that concerns many people. The Constitution of the People's Republic of China explicitly guarantees citizens' freedom of religious belief, and the state protects normal religious activities. In Xizang, we firmly adhere to these constitutional provisions and consistently respect and protect the national policy of religious freedom. As the journalist from Guangming Daily pointed out, Xizang has not only Tibetan Buddhist monasteries, but also mosques, Catholic churches, and other religious sites, all of which are protected by law. Traditional religious activities such as learning scriptures and debate, along with the system for promotion in academic degrees, are regularly practiced here in Tibetan Buddhist monasteries. The traditional system whereby Tibetan Buddhist monks learn sutras in monasteries and temples has been effectively integrated with the three-level academic title system of modern education. Currently, 130 monks in Xizang have obtained the Thorampa title, the highest academic degree in Tibetan Buddhism studies, and over 3,000 monks are learning sutras at Xizang Tibetan Buddhist Institute and its 10 branches. On the basis of meeting the legitimate needs of religious believers, freedom of religious belief is fully respected. It's common for ordinary believers to have a scripture room or a Buddhist shrine at home, and you can often see this when visiting these families. The Shoton Festival, Butter Lamp Festival, Saga Dawa Festival and other religious and folk activities, such as religious walks around lakes and mountains, are all conducted in an orderly manner every year. Currently, as everyone can see, over a million pilgrimages to Lhasa are made each year.

We have also further improved social security for monks and nuns. Since the new era, dormitories for monks and nuns in monasteries and temples have undergone unified maintenance and renovation, nursing homes have been built at these sites to provide medical services, and infrastructure has been vigorously improved. Over 98% of monasteries and temples now have access to roads, telecommunications, electricity, water, radio and television. Some may wonder why 2% remain without these services, — this is because some temples are located in extremely remote and high-altitude areas. Additionally, we provide annual subsidies to cover medical insurance, pension schemes, subsistence allowances, accident injury insurance, and health check expenses for all registered monks and nuns. We can confidently state that the learning, practice and living conditions for monks and nuns have significantly improved, with their studies, spiritual cultivation and daily lives now fully protected. Thank you.

Jiji Press:

The Chinese government has proposed expanding the reception of foreign tourists, but free travel is still not permitted within the Xizang Autonomous Region. What are the reasons for this? Will these restrictions be relaxed in the future? Thank you.

Gama Cedain:

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

Xu Zhitao:

Thank you for your questions. Xizang is an open region. We have always welcomed foreign visitors to tour Xizang, as well as foreign journalists to conduct reporting here. However, due to Xizang's unique natural environment, geographical conditions and reception capacity, we implement certain management and safety measures when receiving foreign visitors.

The current Party committee and government of Xizang attach great importance to further expanding openness. An open society is essential for vitality. Speaking as the government official overseeing cultural and tourism affairs, we have actively worked to attract more foreign tourists and investors to Xizang. In recent years, the number of foreign visitors has steadily increased, with Xizang welcoming 320,000 foreign tourists in 2024.

Looking ahead, Xizang will accelerate its pace of opening up. We will also provide more convenient access for foreigners to visit Xizang based on improvements in Xizang's infrastructure and reception capabilities. Thank you.

Phoenix TV:

Regarding environmental protection, in addition to the saying "clear waters and green mountains are as valuable as gold and silver," there is also the saying "ice and snow are as valuable as gold and silver" in Xizang. I would like to ask what achievements Xizang has made in recent years in protecting environmental rights? Thank you.

Gama Cedain:

I'll take this question. This is also a very important question. As we mentioned earlier, ecological conservation is one of the four main tasks for Xizang in the new era. Xizang has always prioritized eco-environmental conservation, keeping in mind General Secretary Xi Jinping's instruction that "conserving the ecology of the Qinghai-Tibet Plateau is the greatest contribution to the survival and development of the Chinese nation." We have implemented the strictest eco-environmental protection systems and continuously enhanced environmental governance. Today, our pristine eco-environment has become a crucial contributor to the well-being of people from all ethnic groups and stands as Xizang's most distinctive feature. I believe that in the coming days, our journalist friends will personally experience Xizang's breathtaking natural beauty. Let me briefly introduce four aspects of this to you.

First, Xizang's air has become fresher, with "Bright Xizang" becoming increasingly evident. Since 2016, the annual proportion of days with excellent or good air quality in Xizang has consistently exceeded 99%. Air quality in major towns and cities has generally remained excellent or good, while the air quality in the Mount Qomolangma area continues to be rated as excellent or good, meeting China's Grade-I national standards.

Second, our glaciers are better preserved, making "Crystal Xizang" even more beautiful. The Xizang Autonomous Region promulgated the Regulations of the Xizang Autonomous Region for Glacier Protection, which provides frameworks for strengthening glacier protection, ensuring ecological security, promoting sustainable economic development and achieving harmony between humanity and nature. Additionally, Xizang has also coordinated glacier protection with surrounding ecological conservation efforts, achieving eco-environmental protection across the Qinghai-Tibet Plateau.

Third, our water quality has improved, making "Clear Xizang" increasingly attractive. Xizang's beautiful lakes and majestic rivers are unique landscapes of the Qinghai-Tibet Plateau. Through systematic protection measures focused on 33 major river sources, 100% of rivers and lakes in Xizang now meet healthy evaluation standards, with 99.96% of key rivers and lakes achieving target ecological flow rates. Nowadays, taking a scenic lake-touring trip in Xizang has become a shared aspiration for many tourists.

Fourth, living conditions have become more comfortable, and the goal of building a "Livable Xizang" is gradually being realized. All seven prefecture-level cities in Xizang are now designated as National Ecological Civilization Demonstration Zones, making it the only provincial-level region nationwide where every prefecture-level city has achieved the target. In the central urban area of Lhasa, where we are now, the first phase of the water system ecological management project and the ongoing second phase have further enhanced the urban water landscape, continuously improving the living environment. As a result, Lhasa is becoming an ever more livable and beautiful highland city.

"Green development underlines high-quality development, and the new quality productive forces in essence are green." Xizang has transformed its lucid waters, lush mountains, glaciers and snowy lands into invaluable assets, ultimately benefiting the people of Xizang. We often say that "seeing is believing." During this visit to Xizang, participants will have the opportunity to personally discover the region's remarkable high-altitude ecological conditions. Thank you.

RIA Novosti:

I'd like to learn more about Russian tourists in Xizang. Which Xizang travel routes are currently most popular among Russian visitors? And what new routes may attract more Russian tourists in the future? 

Gama Cedain:

I'd like to invite Mr. Xu to answer your questions.

Xu Zhitao:

Thank you for your questions. I have visited Russia before. I once led a cultural delegation from Xizang to visit Russia, and I truly felt the warmth and friendship of the Russian people towards the Chinese people. Many Russian people are keenly interested in Xizang culture and have a strong desire to travel here. According to our preliminary understanding, tourists from Russia, as well as some from European and American countries, often choose a travel route starting in Lhasa, continuing to Shigatse, and then proceeding to Mount Qomolangma, the world's highest peak. From there, some travelers will continue onward to visit the sacred mountains and holy lakes in Ngari prefecture. This route encapsulates the essence of Xizang's natural beauty and cultural heritage. As I previously noted, Xizang is opening up more broadly and in more areas. From the government's perspective, we are also exploring ways to develop more tourist routes that appeal to international visitors as part of our broader opening up policies. Now, the number of direct civil aviation flights from Xizang to other destinations has increased significantly compared to previous years. Xizang is also developing high-end tourist trains with unique features to enhance access to the region. These developments are expected to draw more foreign tourists. We hope that an increasing number of foreign visitors will choose to visit Xizang. Thank you.

Economic Daily:

In recent years, the country has implemented multiple measures to improve housing for all citizens. People of all ethnic groups have gradually moved from merely having a place to live to enjoying a comfortable living environment. Xizang is located on a plateau with a dispersed population. We've noticed that Xizang has been implementing relocation initiatives to improve the living conditions of residents on the plateau. Could you please outline the specific strategies and successes of these relocation efforts? Thank you.

Gama Cedain:

I'd like to invite Mr. Xu to answer your question.

Xu Zhitao:

Just now, the reporter mentioned that Xizang is a vast region with a sparse population, resulting in residents being scattered across different living areas. In some remote areas, people face problems accessing transportation, receiving medical treatment, sending children to school and finding employment. The Xizang Autonomous Region attaches great emphasis on people's right to housing, considering it as part of a comprehensive approach that also includes the rights to health, education and environmental well-being. Especially since 2015, in line with the principle of voluntary mass participation and a mix of centralized and decentralized resettlement, 965 poverty alleviation relocation sites have been gradually established in areas with relatively low altitudes that are suitable for both production and living. After the country launched its critical battle against poverty, Xizang's governments at all levels have worked to address key challenges, including access to medical treatment, schooling and housing for relocated individuals. They have also carried out skills training and provided ecological subsidies. As mentioned in the white paper, by the end of 2019, all 628,000 registered impoverished people in the region had risen from poverty. Of these, 266,000 were lifted out of poverty due to relocation policies. Relocation has addressed the issue of the local environment being incapable of sustaining the resident population and has also protected the ecological environment. Both the living standards and quality of life for relocated individuals have shown substantial improvements. Here is an example. Shuanghu county in Xizang's Nagqu has an average altitude of over 5,000 meters and is the highest-altitude county in China. The natural conditions there are quite harsh. Since 2019, 14,000 herders from Shuanghu county have been gradually relocated to Senburi, which is approximately 60 kilometers from Lhasa at an altitude of only 3,600 meters, located on the banks of the Yarlung Zangbo River. We have consistently tailored our policies to local conditions, ensuring that respect for the public's wishes remains the primary consideration in our relocation efforts. Six years have passed since the relocation. Many herders in Senburi have chosen to reside there permanently. At the same time, some continue to return to Shuanghu county during the summer for grazing and then move back to the lower-altitude areas with better living conditions to spend the winter.

As for Shuanghu county, the county from which the relocation occurred, the local government has established agricultural and pastoral cooperatives. Some herders who remained and medical staff have formed cooperatives that work together to care for the livestock left behind by the relocated herders on a rotational basis. Generally speaking, the relocated individuals have expressed approval of the arrangements made by the Party and the government. They are confident about their future in their new communities. Thank you.

China Daily:

In 1995, the fourth World Conference on Women convened in Beijing, adopting the Beijing Declaration and the Platform for Action. This year marks the 30th anniversary of the Beijing Women's Conference, and recently, the United Nations also held the 69th session of the Commission on the Status of Women. What measures has the Xizang Autonomous Region adopted to promote the protection of women's rights? Thank you.

Gama Cedain:

I'd like to invite Mr. Wang to answer your question.

Wang Haizhou:

Thank you to this journalist for highlighting women's rights in Xizang. Women's rights are fundamental human rights, and the comprehensive development of human rights is impossible without the full development of women's rights. As such, we have formulated and promulgated the Plan for Women's Development in Xizang Autonomous Region (2021-2025) and have continuously strengthened the protection of women's rights. In terms of participation in and deliberation on the administration of state affairs, women comprise 36.6% of the region's delegates to the 20th CPC National Congress, 28% of its deputies to the 14th NPC, and 22.6% of its members on the 14th CPPCC National Committee. Among the delegates to the 10th Party Congress of the Xizang Autonomous Region, 32.4% are female. Additionally, women constitute 30.6% of the deputies to the 12th People's Congress of the region and 28.1% of the members of the 12th CPPCC Xizang Autonomous Regional Committee. In all of our administrative villages and urban communities, there are female members serving on Party branches and villagers' or residents' committees, ensuring that women fully participate in and engage in deliberation on the administration of state affairs.

Regarding the protection of women's right to health, we have implemented a preferential policy for the cost of hospitalization for childbirth, granting pregnant women from farming and pastoral areas full reimbursement of medical expenses, as well as a one-time hospital delivery subsidy of 1,000 yuan and a prenatal living allowance of 300 yuan. In the past five years, Xizang has provided more than 200 million yuan in hospital delivery subsidies, benefiting more than 267,000 pregnant women from farming and pastoral areas. Xizang's hospital delivery rate increased from 75.8% in 2012 to 99.15% in 2023.

In terms of ensuring women's right to education, we are well aware that prior to democratic reform, women in old Xizang held a low social status. This meant most women lacked the opportunity and right to receive an education. Following democratic reform, particularly over the past 60 years since the establishment of the Xizang Autonomous Region under the leadership of the CPC, the gender gap in compulsory education has largely been eliminated. Moreover, the proportion of female students in regular higher education, graduate education and adult higher education has consistently remained above 50%. Here, we can proudly say that women's right to education has been effectively protected.

If you observe closely, you will see women actively engaged in various roles across Xizang. An increasing number of women have emerged as a crucial driving force in building a modern socialist new Xizang, figuratively holding up half the sky in this beautiful region. Thank you.

Shou Xiaoli:

Let's continue. Due to time constraints, we'll take one last question, please.

Xinhua:

Employment is pivotal to people's wellbeing. According to data I have access to, approximately 648,000 farmers and herders in Xizang turned to other jobs in 2024, earning a total labor income of 7.155 billion yuan. Could you please outline the effective measures Xizang has taken to help farmers and herders find new jobs? Thank you.

Gama Cedain:

I'd like to invite Mr. Xu to answer your question.

Xu Zhitao:

Thank you for the question. As the chairperson just mentioned, a happy life is considered the most fundamental human right. To achieve a happy life, people need access to high-quality employment opportunities. In Xizang, where farmers and herders account for more than 60% of the population, the CPC Central Committee places great emphasis on raising the income of farmers and herders and has put forward clear requirements. The Party committee and government of Xizang Autonomous Region have consistently prioritized initiatives to help farmers and herders transition to other fields, thereby enhancing their income. Working under the principle of fully respecting the preferences of farmers and herders, we have given full play to the government's functional role and the market's principal role to provide employment transition services for farmers and herders. To be more specific, we have focused on the following aspects:

First, we have implemented a unified registration system for employment and business startups across both urban and rural areas. We have included all farmers and herders in the urban employment registration system, offering them free public services such as job recommendations, career guidance and jobseeker registration.

Second, we have actively carried out vocational skills training. Currently, urban and rural residents in Xizang aged 16 and above who are willing to work and require skills training have the opportunity to receive skills training. When formulating training and employment plans, we fully respect the preferences of jobseekers, allowing them to select their preferred training programs, methods and training institutions.

Third, we assist farmers and herders in transitioning to jobs in other fields by developing distinctive and competitive industries, establishing facilities to facilitate job placement, and implementing government-funded projects, among other strategies.

Fourth, leveraging employment service centers in various locations, we assist farmers and herders in finding employment outside their farms or pastures in an orderly manner, respecting their work preferences and individual capabilities. We also address their needs concerning food, accommodation, transportation and rights protection, ensuring their concerns are addressed. Thank you.

Shou Xiaoli:

Following the press conference, the Chinese and international journalists on site today will continue their visit to Xizang. If you still have questions, you can continue to learn more during the trip. Thank you to all the speakers, and thank you to all the journalists who participated. I would like to extend a special thank you to the journalists who traveled from afar. That concludes today's press conference. Goodbye, everyone.

Translated and edited by Zhu bochen, Chen Xinyan, Lin Liyao, Zhang Tingting, Zhang Jiaqi, Wang Xingguang, Yang Chuanli, Liao Jiaxin, Wang Wei, Wang Qian, Liu Sitong, Zhang Junmian, Li Huiru, Li Xiao, Fan Junmei, Huang Shan, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

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

Chairperson:

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

Date:

March 17, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we have invited Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS, to brief you on China's economic performance in the first two months of 2025 and answer your questions.

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

Fu Linghui:

Good morning, everyone. As usual, I will start by briefing you on the main economic indicators in the first two months of 2025 and then answer your questions.

In the first two months, the national economy started off smoothly, with development trends moving in a new and positive direction.

In January and February, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments thoroughly implemented the decisions and arrangements made by the CPC Central Committee and the State Council, adhered to the general principle of pursuing progress while ensuring stability, fully and faithfully applied the new development philosophy on all fronts, accelerated efforts to create a new pattern of development and took solid steps to promote high-quality development. As a result, a package of existing policies and incremental policies continued to take effect, industrial and service sectors grew rapidly, consumption and investment continued to improve, employment was generally stable, and new quality productive forces grew and thrived. The national economy got off to a steady start with new and positive development momentum.

First, industrial production grew rapidly, with accelerated growth in equipment manufacturing and high-tech manufacturing.

The total value added of industrial enterprises above designated size grew by 5.9% year on year in the first two months, 0.1 percentage point faster than that of 2024. In terms of sectors, the value added of mining went up by 4.3% year on year, manufacturing up by 6.9%, and the production and supply of electricity, thermal power, gas and water up by 1.1%. The value added of equipment manufacturing increased by 10.6% year on year, 2.9 percentage points faster than that of 2024; and the value added of high-tech manufacturing increased by 9.1%, which was 0.2 percentage point faster. In terms of ownership, the value added of state holding enterprises was up by 3.7% year on year; that of share-holding enterprises was up by 6.6%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 3.2 %; and that of private enterprises was up by 6.7%. In terms of products, the production of new energy vehicles (NEVs), 3D printing devices and industrial robots grew by 47.7%, 30.2% and 27%, respectively. In February, the total value added of industrial enterprises above designated size went up by 0.51% month on month. In February, the Manufacturing Purchasing Managers' Index (PMI) stood at 50.2%, 1.1 percentage points higher than the previous month; and the Production and Operation Expectation Index was 54.5%.

Second, the service sector witnessed a good growth momentum and modern services grew rapidly.

In the first two months, the Services Production Index grew by 5.6% year on year, 0.4 percentage point faster than that of 2024. Specifically, the Services Production Index of information transmission, software and IT services grew by 9.3%, leasing and business services grew by 8.8%, wholesale and retail grew by 5.6%, and finance grew by 5.5% year on year. In February, the Business Activity Index for Services was 50%, and the Business Activity Expectation Index for Services was 56.9%. Specifically, the Business Activity Index for industries like air transportation, postal services, telecommunication, broadcast, television and satellite transmission services, monetary and financial services and capital market services all stayed within the high expansion range of 55% and above.

Third, the growth of market sales accelerated and trade-in goods showed good sales.

In the first two months, the total retail sales of consumer goods reached 8,373.1 billion yuan ($1,152.9 billion), up by 4% year on year, 0.5 percentage point faster than that of 2024. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 7,246.2 billion yuan, up by 3.8%; and that in rural areas reached 1,126.9 billion yuan, up by 4.6%. Grouped by consumption patterns, the retail sales of goods were 7,393.9 billion yuan, up by 3.9%; and the income of catering was 979.2 billion yuan, up by 4.3%. Sales of basic living goods and certain upgraded goods achieved sound growth. The retail sales of grain, oil and food and of sports and recreational articles by enterprises above designated size went up by 11.5% and 25%, respectively. The effect of consumer goods trade-in policies continued to manifest, with the retail sales by enterprises above designated size of communication equipment growing by 26.2%, cultural and office supplies by 21.8%, furniture by 11.7%, and household appliances and audio-visual equipment by 10.9%. Online retail sales reached 2,276.3 billion yuan, up by 7.3% year on year. Specifically, the online retail sales of physical goods were 1,863.3 billion yuan, up by 5%, accounting for 22.3% of the total retail sales of consumer goods. In February, the total retail sales of consumer goods grew by 0.35% compared with the previous month. In the first two months, the retail sales of services grew by 4.9% year on year.

Fourth, growth of investment in fixed assets picked up and investment in manufacturing and high-tech industries grew quickly.

In the first two months, the investment in fixed assets (excluding rural households) reached 5,261.9 billion yuan, up by 4.1% year on year, 0.9 percentage point faster than that of 2024; and the investment in fixed assets was up by 8.4% with investment in real estate development deducted. Specifically, investment in infrastructure grew by 5.6% year on year, that in manufacturing grew by 9%, and that in real estate development declined by 9.8%. The floor space of newly-built commercial buildings sold was 107.46 million square meters, down by 5.1% year on year, with the decline narrowing by 7.8 percentage points compared with that of 2024; and the total sales of newly-built commercial buildings were 1,025.9 billion yuan, down by 2.6%, with the decline narrowing by 14.5 percentage points. By industry, investment in the primary industry increased by 12.2% year on year, that in the secondary industry was up by 11.4%, and that in the tertiary industry was up by 0.7%. Private investment maintained the same level year on year, or increased by 6% with the investment in real estate development deducted. Investment in high-tech industries increased by 9.7% year on year. Specifically, the investment in information services grew by 66.4%, e-commerce services by 31.9%, computer and office device manufacturing by 31.6%, and aerospace vehicle equipment manufacturing by 27.1%. In February, the investment in fixed assets (excluding rural households) increased by 0.49% compared with the previous month.

Fifth, imports and exports of goods were generally stable, and the trade structure continued to improve.

In the first two months, the total value of imports and exports of goods reached 6.5364 trillion yuan, down 1.2% year on year. Of this, exports totaled 3.8812 trillion yuan, up 3.4%; imports amounted to 2.6551 trillion yuan, down 7.3%. Imports and exports by private enterprises rose 2%, accounting for 56.4% of the total value of imports and exports. This share was 1.8 percentage points higher than that in the same period last year. Exports of mechanical and electrical products grew 5.4%, accounting for 60% of the total export value.

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

In the first two months, the country's surveyed urban unemployment rate averaged 5.3%. In February, the surveyed urban unemployment rate was 5.4%, up 0.2 percentage points from the previous month. The surveyed unemployment rate for the population with local household registration was 5.6%, and for those with non-local registration, it was 5%. The rate for people with non-local agricultural household registration was 5.1%. The surveyed urban unemployment rate in 31 major cities was 5.2%. On average, employees of enterprises worked 47.1 hours per week.

Seventh, consumer prices fell year on year, and the decline in producer prices narrowed.

In the first two months, the consumer price index (CPI) receded 0.1% year on year. Specifically, it rose 0.5% in January and dropped 0.7% in February. Grouped by commodity categories, in the first two months, prices for food, tobacco and alcohol fell 0.9% year on year; clothing rose 1.1%; housing increased 0.1%; articles and services for daily use decreased 0.9%; transportation and communication dropped 1.6%; education, culture and recreation rose 0.6%; medical services and health care increased 0.4%; and other articles and services rose 5.9%. Among the prices for food, tobacco and alcohol, fresh vegetable prices fell 5.5%, grain prices dropped 1.4%, fresh fruit prices decreased 0.6%, and pork prices rose 8.8%. The core CPI, excluding food and energy prices, rose 0.3% year on year. In January and February, the CPI rose 0.7% and fell 0.2% month to month, respectively.

In the first two months, the national producer prices fell 2.2% year on year. In January, producer prices fell 2.3% year on year and 0.2% month on month. In February, they dropped 2.2% year on year, narrowing the decline by 0.1 percentage point compared with the previous month, and fell 0.1% month on month. In the first two months, the purchasing prices for industrial producers fell 2.3% year on year.

Generally speaking, in the first two months, as various macro policies continued to take effect, the national economy maintained its new and positive momentum, and the quality of development steadily improved. However, we should be aware that the external environment is increasingly complex and severe, domestic effective demand is weak, some enterprises face difficulties in production and operation, and the foundation for sustained economic recovery and growth is not strong enough. In the next stage, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirit of the Central Economic Work Conference and the "two sessions" , adhere to the general principle of pursuing progress while ensuring stability, fully and faithfully apply the new development philosophy on all fronts, move faster to create a new pattern of development, and make solid progress in high-quality development. We must implement more proactive and effective macro policies, stimulate domestic demand across the board, further deepen reform and opening up, make every effort to strengthen growth drivers, boost economic vitality, and improve expectations to promote sustained economic recovery and growth. Thank you.

Shou Xiaoli:

Thank you, Mr. Fu. The floor is now open for questions.

CCTV:

How would you evaluate the performance of China's economy in the first two months, and what are the overall highlights and positive changes? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, with the gradual implementation of more proactive fiscal policies and moderately accommodative monetary policies, the synergistic effects of existing and incremental policies have been continuously enhanced. In the first two months, production and supply grew steadily, demand expanded gradually, the employment situation remained generally stable, and new drivers of development strengthened progressively. The overall economic operation has been stable and has shown progress, continuing the improving trend. The characteristics of economic performance in the first two months can be summarized in two points: first, the economy got off to a stable start; second, the development trend is shifting toward new and positive improvements.

The stable start to economic performance primarily refers to the economy continuing the recovery trend that began in the fourth quarter of last year. It maintained overall stability in the face of growing external pressures. This is primarily reflected in stable production growth, gradual expansion of demand and an overall stable employment situation. From the perspective of production, new-type industrialization has steadily advanced. The combined effects of macro policies are increasingly evident in driving industrial growth, resulting in relatively rapid industrial production. In the first two months, the value-added of industrial enterprises above designated size rose 5.9% year on year, accelerating 0.1 percentage point compared with last year. Among them, the value-added of the equipment manufacturing sector increased 10.6% year on year, significantly supporting overall industrial growth. With the continued deepening of digital transformation and the active holiday economy during the Spring Festival, growth was driven in information technology, tourism and transportation-related industries, while the service sector showed strong growth momentum. In the first two months, the production index of the service industry rose 5.6% year on year, accelerating by 0.4 percentage points compared with the previous year. Within this group, the production indices of the information transmission, software and IT services industry, as well as the leasing and business services industry, rose 9.3% and 8.8% year on year, respectively. From a demand perspective, consumer goods trade-in policies were intensified and expanded. During the Spring Festival, the markets for tourism, culture and sports were booming, driving a rebound in market sales and an expansion in service consumption. The total retail sales of consumer goods in January and February rose 4% year on year, accelerating 0.5 percentage points from the previous year. During the Spring Festival, domestic tourist trips rose 5.9% year on year. In January and February, the transaction volume of tourism services on digital platforms increased by more than 20%. The 2024-2025 snow season saw national ski resorts receiving a cumulative 22.8% increase in visitors year on year. Meanwhile, domestic animated film "Ne Zha 2" broke multiple box office records. With the enhancement of policies for basic livelihood infrastructure construction and large-scale equipment renewal, manufacturing investment and infrastructure investment grew rapidly, driving a rebound in overall investment growth. In the first two months, fixed asset investment (excluding rural households) rose 4.1% year on year, accelerating 0.9 percentage points from the previous year. Among these, infrastructure investment rose 5.6%, accelerating by 1.2 percentage points from the previous year, while manufacturing investment grew 9%, significantly outpacing the growth of total investment. From an employment perspective, despite fluctuations in the monthly surveyed urban unemployment rate due to the Spring Festival, the overall employment situation has remained generally stable. In the first quarter, the national average surveyed urban unemployment rate was 5.3%, essentially unchanged from the previous year.

The new and positive development momentum is reflected in the steady development of new quality productive forces, the ongoing impact of macroeconomic policies, and enhanced market expectations and confidence. With regard to new quality productive forces, various sectors are intensifying their efforts to promote the integrated development of scientific and technological innovation and industrial innovation. They are actively driving the development of the green and low-carbon economy, which has led to the rapid emergence of new growth drivers and the flourishing of green industries. The value added of high-tech manufacturing enterprises above designated size increased 9.1% year on year in January and February, while NEV output rose 47.7%. These growth rates are particularly notable as they build upon the relatively high base established last year. Regarding policy effectiveness, measures supporting major national strategies, enhancing security capacity in key areas, and promoting large-scale equipment renewal and consumer goods trade-ins have continued to stimulate production and demand since the beginning of this year. The output of excavating and shoveling transportation machinery, household refrigerators, and household washing machines achieved double-digit growth from January to February. Similarly, retail sales of household appliances, audiovisual equipment, furniture, office supplies, and communication equipment by enterprises above designated size sustained double-digit growth during the same period. Regarding market expectations, macroeconomic policies have become more proactive and effective, with new breakthroughs achieved in emerging fields such as AI. Notably, General Secretary Xi Jinping's important speech at the symposium on private enterprises has significantly bolstered development confidence among private enterprises and across society. In February, the manufacturing PMI stood at 50.2%, up 1.1 percentage points from the previous month, while the non-manufacturing business activity index reached 50.4%, an increase of 0.2 percentage points.

Overall, the economy performed stably in January and February, with key indicators showing steady growth, new growth drivers being cultivated and strengthened, and development quality steadily improving. These outcomes were achieved against the backdrop of increasing external challenges and a high base of comparison from the same period last year. Attaining these results was no small feat, underscoring the impressive resilience of the Chinese economy. However, it should also be noted that the external environment is growing increasingly complex and severe, characterized by numerous unstable and uncertain factors. Additionally, domestic demand remains weak, and many companies continue encountering challenges in their production and operations. Moving forward, we will earnestly implement the guiding principles from the Central Economic Work Conference and the annual "two sessions." We will adopt more proactive and effective macroeconomic policies, expand domestic demand across all sectors, accelerate innovation-driven development, enhance reform and opening up, and promote sustained economic recovery and growth. These efforts aim to effectively safeguard and improve people's livelihoods. Thank you.

Jinan Times APP:

The government work report has set this year's economic growth target at around 5%. What favorable factors will help achieve this objective, given current economic conditions? Thank you.

Fu Linghui:

Thank you for your question. This year's government work report sets a target of around 5% for economic growth. This target was established after considering evolving domestic and international dynamics, as well as other relevant factors, balancing both necessity and feasibility. The economic performance so far this year indicates that the combined macroeconomic policies are taking effect, reform and opening up has deepened, and expectations and confidence have been boosted. This has created a solid foundation for achieving the annual economic growth target. Looking ahead, the Chinese economy is well-positioned with numerous favorable conditions to maintain stable and healthy growth.

First, China possesses a solid industrial foundation, which is complemented by the increasing influence of new growth drivers. China's industrial sector covers all categories listed in the United Nations Industrial Classification, featuring a complete industrial system and robust supporting capabilities. Its manufacturing scale has led globally for 15 consecutive years, with "Made in China" products meeting both domestic and global demands. In recent years, China has pursued innovation-driven development, intensified efforts to achieve breakthroughs in core technologies within key fields, and cultivated new quality productive forces tailored to local conditions. Traditional industries are undergoing upgrades, emerging industries are expanding, and future-oriented industries are developing rapidly. Consequently, new growth drivers are taking shape at an accelerated pace. In the services sector, the integrated development of advanced manufacturing and producer services has gathered momentum. Policies aimed at improving people's livelihoods have created favorable conditions for the growth of the life services sector. Meanwhile, advancements in the AI industry are fueling growth in related industries and opening up new opportunities for sector upgrades.

Second, there is ample market demand, providing a solid foundation for unleashing both consumer and investment potential. The market stands as the most precious resource. China, with its population of over 1.4 billion and a per capita GDP surpassing $13,000, boasts a market of immense potential and breadth, holding within it vast opportunities for development. The growth in residents' consumption capacity and the rapid pace of consumption upgrading are fueling the expansion of new consumption forms, including green and digital consumption, as well as service sectors like elderly care and child care. These developments will emerge as key drivers propelling consumption growth forward. There is vast investment potential in fields such as new industrialization, new-type urbanization, and energy conservation and carbon reduction retrofits. Additionally, substantial investment demand exists in areas concerning people's livelihoods, including basic public services and government-subsidized housing. By fully leveraging these favorable conditions and systematically unleashing the potential of domestic demand, we will be able to facilitate economic circulation.

Third, advancing reform and opening up in all respects will further stimulate development potential and momentum. Reform and opening up is the driving force for Chinese development, serving as a crucial tool for rapidly keeping pace with the times. The third plenary session of the 20th CPC Central Committee proposed more than 300 important reform measures. As reforms in related fields are gradually implemented, these efforts are beginning to yield results in key areas and at crucial points. This progress will help overcome deep-seated institutional and systemic barriers, ensuring the market plays a decisive role in resource allocation. The goal is to create a first-class business environment that is market-oriented, law-based, and internationalized, fostering better interplay between an efficient market and a well-functioning government. This will further unleash and develop productive forces, stimulate economic vitality and enhance momentum.

Fourth, macroeconomic policies are yielding positive results, ensuring a steady economic recovery. A meeting of the Political Bureau of the CPC Central Committee on Sept. 26 last year decisively deployed a package of incremental policies, effectively boosting confidence, stimulating market vitality, promoting economic recovery and achieving remarkable results. Since the beginning of this year, all sectors have diligently implemented the spirit of the Central Economic Work Conference and adopted more proactive and effective macroeconomic policies, which help enhance momentum, stimulate vitality, stabilize expectations, and promote stable and healthy economic development.

It is also important to recognize that this year is the culmination of the 14th Five-Year Plan. Consequently, all stakeholders will focus on completing key tasks, redoubling their efforts, and offering enhanced support to drive stable economic growth. It should be noted that achieving China's GDP growth target, which is around 5%, is by no means easy and requires diligent efforts. Moving forward, we must conscientiously implement the decisions and deployments of the CPC Central Committee, seize the opportunities for economic recovery and growth, intensify the implementation of various macroeconomic policies, comprehensively deepen reform, further open up to the world, and vigorously foster new quality productive forces. We will strive to make significant progress in achieving high-quality development and complete the goals regarding this year's economic and social development, thereby laying a solid foundation for the successful completion of the 14th Five-Year Plan and a strong start to the 15th Five-Year Plan. Thank you.

Bloomberg:

We observed that industrial output growth is lower than in December last year. Do you think it is caused by the risk of increased U.S. tariffs? Thank you.

Fu Linghui:

Thank you for your question. Since the beginning of this year, policies aimed at vigorously advancing new industrialization, expanding and strengthening advanced manufacturing, and promoting the renewal and upgrading of traditional industries have contributed to relatively rapid growth in the equipment manufacturing and high-tech manufacturing sectors. New industrial momentum has been cultivated and strengthened, business expectations have improved, and overall industrial production has maintained stable and rapid growth.

First, industrial production continues to grow. All localities have stepped up their support for industrial production and strengthened the supply of essential resources, thereby creating conducive conditions for industrial development. In the first two months, the value added by industries above designated size increased by 5.9% year on year, accelerating by 0.1 percentage point compared to the whole of last year. The manufacturing sector experienced a growth rate of 6.9%, significantly faster than the growth rate of total industrial value added. Among these, the equipment manufacturing sector grew by 10.6%, accelerating by 2.9 percentage points compared to the whole of last year, thus providing strong support for the steady and rapid growth of industrial production. This industrial growth rate was achieved despite a high growth rate in January-February of last year, which also reflects the strong resilience of China's industrial sector.

Second, the trend towards high-end and intelligent development in industry is becoming increasingly evident. As technological innovation and industrial innovation continue to converge at an accelerated pace, advanced technologies like information technology and AI are driving industrial transformation and emerging as key drivers of industrial growth. In the first two months, the value added of high-tech manufacturing increased by 9.1% year on year, accelerating by 0.2 percentage points compared to the whole of last year. From a product perspective, the output of industrial robots and integrated circuit wafers increased by 27% and 19.6%, respectively, in January and February. The widespread adoption of domestic AI-driven large models in key industrial sectors like electronics and automobiles is accelerating, driving innovation and development across industries. The surge in computing demand is fueling the rapid growth of related industries. In the first two months, the value added of digital product manufacturing rose by 9.1%, while server output skyrocketed by 73%.

Third, industries are making progress in green development. New energy industries have demonstrated strong growth momentum, and the use of green energy is increasing, which provides a significant boost to the economic transition towards green and low-carbon development. From January to February, the output of NEVs and lithium-ion batteries for automobiles increased by 47.7% and 37.5% year on year, respectively, sustaining a high growth rate. Additionally, industrial enterprises above designated size maintained double-digit growth in wind and solar power generation.

Fourth, business expectations have improved. Since the beginning of this year, macroeconomic policies have become more proactive. Breakthroughs have been achieved in the application of technologies like AI, which have helped improve business expectations. In February, the manufacturing PMI stood at 50.2%, up 1.1 percentage points from the previous month. The new orders index for the manufacturing sector was 51.1%, increasing by 1.9 percentage points.

Overall, industrial production has maintained relatively fast and stable growth this year, manifesting new and positive momentums. However, we should also recognize that structural imbalances in market supply and demand remain, prices in certain industries are low, and some enterprises underachieve. Looking ahead, we need to implement various measures to expand domestic demand across all aspects, promote the integrated development of technological and industrial innovation, enhance business operations, and drive high-quality industrial development. Thank you.

21st Century Business Herald:

How do you assess the performance of the real estate market from January to February, and what positive changes have been observed? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, thanks to effective policies, the real estate market has maintained general stability. Overall transactions and new home sales have been stable, while second-hand home transactions have been relatively brisk. Housing prices in first-tier cities have begun to recover. Market expectations are generally stable, and the real estate market has continued to stabilize since the fourth quarter of last year.

First, market transactions have generally remained stable. As real estate market policies were optimized and adjusted, and residents' demand for essential and upgraded housing was gradually releasing, property transactions began to improve from the fourth quarter of last year. In January and February of this year, overall market transactions remained stable. During this two-month period, the year-on-year decline in the area and amount of new commercial housing sales narrowed by 7.8 and 14.5 percentage points, respectively, compared with the full-year figures of last year, while in 40 key monitored cities, the area and amount of new commercial housing sales rose 1.3% and 7.1% year on year, respectively.

Second, housing prices continued to stabilize. In February, stabilizing policies to cease market decline took effect, and as the result, among 70 large- and medium-sized cities, the sales prices of new commercial residential buildings in first-tier cities continued to rise month on month. Meanwhile, the year-on-year decline in sales prices for both new and second-hand residential buildings in first-, second- and third-tier cities continued to narrow. Regarding the sales prices of new commercial residential buildings, the year-on-year decline in first-tier cities narrowed by 0.4 percentage point compared with the previous month. The year-on-year decline in second- and third-tier cities narrowed by 0.3 and 0.1 percentage points, respectively, compared with the previous month. Regarding the sales prices of second-hand residential buildings, the year-on-year decline in first-tier cities narrowed by 0.7 percentage point compared with the previous month, while the year-on-year decline in second- and third-tier cities both narrowed by 0.2 percentage point.

Third, market expectations remained stable. A survey of real estate business entities shows that in February, among developers and intermediary institutions in 70 large- and medium-sized cities, 71.8% of surveyed employees expected new commercial residential building sales prices to remain stable or rise over the next six months, up 2.8 percentage points from the previous month. This suggests a generally stable outlook among market institutions.

Fourth, real estate development companies have seen operational improvements. As real estate sales in first- and second-tier cities showed a positive trend of halting declines and stabilizing, the sales stability contributed to improvements in enterprise operational development and helped generating liquidity. In the first two months, the year-on-year decline in real estate development investment narrowed by 0.8 percentage point compared with the whole year of 2024. In particular, residential investment saw its decline narrow by 1.3 percentage points, while the decline in funds available to real estate enterprises narrowed by 13.4 percentage points than full-year 2024.

Overall, the real estate market has remained generally stable this year and continues to show signs of halting its decline and stabilizing. However, we should also realize that the real estate market in some regions is still undergoing adjustments, and there are still pressures on stabilizing the market. In the next stage, we must thoroughly implement the decisions and arrangements made by the CPC Central Committee and the State Council. We should adopt city-specific policies, adjust and reduce restrictions, and intensify efforts to renovate urban villages and dilapidated housing, thereby fully unleashing the potential demand for basic and improved housing. We must also improve the housing system by diversifying suppliers and channels of support and by attaching equal importance to home purchases and rentals. Furthermore, efforts should be made to accelerate the establishment of a new model for real estate development and to promote the stable and healthy development of the real estate market. Thank you.

Yicai:

We have noticed that the CPI in February started to decrease year on year and month on month. What is the reason behind this? In addition, what is your view on the future trend of prices? Thank you.

Fu Linghui:

Thank you for your questions; price trends are of great concern to everyone. According to historical data, the Spring Festival has a significant impact on the CPI in January and February, especially when it falls in different months in two consecutive years, which can cause both year-on-year and month-on-month fluctuations. This is primarily due to the surge in purchases of goods and spending on services before and during the Spring Festival that drive up prices. After the Spring Festival, prices often decline as demand subsides. For instance, prior to the Spring Festival, it's common to see price hikes in food and transportation. However, once the holiday period ends and demand drops off, prices naturally decline. The Spring Festival falls in either January or February each year. When it falls in different months in two consecutive years, it typically causes noticeable fluctuations in the CPI.

In January this year, the CPI rose 0.5% year on year, a significant increase compared to the previous month due to the influence of the Spring Festival. In February, due to the shift in the timing of the Spring Festival, there was a year-on-year decrease of 0.7% in the CPI. This year, the Spring Festival fell in January, while last year, it was in February. After adjusting for the shift in the Spring Festival, February's CPI actually increased 0.1% year on year. It's also worth noting that the year-on-year decline in fresh vegetable prices and automobile discounts in February reduced the CPI growth rate. Due to a high base in the same period last year, when devastating snowstorms in some areas caused vegetable prices to surge, fresh vegetable prices in February this year fell 12.6% year on year, reducing the CPI by about 0.31 percentage point. In February, gasoline and new energy vehicle prices fell by 5% and 6%, respectively, collectively lowering the CPI by approximately 0.16 percentage point year on year. Overall, the CPI's moderate upward trend remains unchanged.

From the perspective of the CPI structure, as market demand improved, prices for some goods and services in February saw steady increases. In February, the prices of industrial consumer goods excluding energy rose 0.2% year on year. Among these, prices for cultural and entertainment durable goods, clothing, communication devices, and small household appliances increased by 1% to 1.6%. Certain service sector prices showed steady growth in February, with housekeeping services prices rising 2.6% year on year and dining-out prices increasing 1.2%. These trends reflected the impact of improved market demand on prices.

Looking ahead, China's supply of industrial and agricultural consumer goods remains ample, and the overall service supply is stable, providing a solid foundation for maintaining price stability. As the economy continues to recover and grow, market demand is expected to expand further. The overall price situation is expected to gradually improve due to efforts to promote income growth through multiple channels, increase high-quality goods supply, improve the consumption environment and enhance consumer goods trade-in programs. Thank you.

Market News International:

In January-February, export and import year-over-year growth slowed from December. What is your interpretation of this data? And, what is the outlook for trade in the coming months given rising trade tensions? Thank you.

Fu Linghui:

Thank you for your questions. Indeed, given the complex and volatile international landscape, developments in foreign trade have drawn a lot of attention. Since the start of this year, global economic recovery has been sluggish, and trade restrictions have grown tighter, presenting mounting challenges to economic and trade growth worldwide. Amid the complicated external environment, China's imports and exports dipped marginally, influenced in part by a lower number of working days relative to the previous year. However, after adjusting for incomparable factors, our imports and exports maintained stable growth. In the first two months of the year, China's total imports and exports of goods fell by 1.2% year on year. However, according to the customs authorities, after adjusting for incomparable factors, imports and exports actually increased by 1.7%. Specifically, exports continued to grow, especially for key products such as machinery and electronics. This growth demonstrates the strong international competitiveness and resilience of China's foreign trade in a complex and challenging global environment. This is evident in several aspects.

First, from the perspective of major trading partners, imports and exports to the Association of Southeast Asian Nations (ASEAN) and the United States continued to grow. In recent years, as the Regional Comprehensive Economic Partnership (RCEP) has been further implemented, trade between China and ASEAN countries has maintained good momentum. This year, China-ASEAN trade continued to grow, with bilateral trade increasing by 4% year on year in the first two months. Despite higher tariffs and other constraints, the complementary nature of China-U.S. trade has remained evident, with trade in goods continuing to grow. In the first two months of the year, bilateral trade increased by 3.5% year on year.

Second, in terms of trade entities, imports and exports by private enterprises continued to grow. In recent years, private enterprises have actively expanded into international markets, playing a crucial role in driving foreign trade growth. Looking at this year's situation, private enterprises have actively responded and adjusted to the complex changes in the international market. They have taken the initiative to explore new areas of foreign trade, and the effects are becoming evident. In the first two months, private enterprises saw their imports and exports rise 2% year on year, outperforming the broader foreign trade sector.

Third, in terms of commodities, exports of mechanical and electrical products experienced strong growth. With ongoing industrial upgrading in China, mechanical and electrical products have become increasingly competitive, fueling sustained export growth in sectors such as integrated circuits and automobiles. In the first two months of the year, China's exports of mechanical and electrical products grew 5.4% year on year. Within this category, exports of automatic data processing equipment and components rose 11.7%, integrated circuits 13.2% and automobiles 3.7%.

Looking ahead, China's foundation for large-scale foreign trade remains solid, as it maintains its position as the world's largest trader of goods and second-largest in services trade. With diverse and stable economic and trade relations, China has become a major trading partner for more than 150 countries, creating ample opportunities for foreign trade development. Moreover, China boasts a complete industrial system and strong supporting capabilities. As a result, "Made in China" products are gaining increasing global recognition. Meanwhile, foreign trade enterprises are actively participating in the international division of labor and cooperation. Additionally, new growth drivers, such as green trade and digital trade, are constantly emerging. Collectively, these factors will support China's foreign trade development.

In the next stage, although the international environment has become more complex and severe, the trajectory of mutually beneficial cooperation will not change. China's firm commitment to opening up wider to the world will not change. It has a complete industrial system, its innovation capability continues to grow, and there is a foundation and conditions for the steady development of foreign trade, which will also create new opportunities for global economic and trade development. Thank you.

China Business News:

How do you evaluate the growth rate of manufacturing investment in the first two months of this year? What has been the effect of the large-scale equipment renewal policy? And how do you see the trend in the growth rate of  the manufacturing investment in the next stage? Thank you.

Fu Linghui:

Thank you for your questions. The development of the manufacturing sector is of great interest to everyone. Since the beginning of this year, with the continuous promotion of the high-end, intelligent and green manufacturing industry, the effect of large-scale equipment renewal policy has emerged, while manufacturing investment has maintained rapid growth, notably driving for the growth of total investment. In the first two months, investment in the manufacturing industry increased by 9% year on year, maintaining relatively fast growth. The main features are as follows:

First, the composition of investment continued to be optimized, and investment in equipment manufacturing grew rapidly. As the manufacturing industry improves and develops, the demand for equipment products expands, driving the growth of industry investment. In the first two months, investment in equipment manufacturing increased by 8.9% year on year. Among this, investment in railway, ship, aerospace and other transportation equipment manufacturing, and investment in general equipment manufacturing increased by 37.3% and 21.6%, respectively, both significantly faster than the growth rate of investment in the entire manufacturing industry.

Second, solid progress was made in transformation and upgrading, and investment in technological transformation of the manufacturing industry grew rapidly. Efforts to transform and upgrade traditional industries have been intensified, and investment in technological transformation in the manufacturing industry has shown good growth momentum. In the first two months, investment in technological transformation of manufacturing industry increased by 10% year on year, and the growth rate was 2 percentage points faster than that of the whole of last year.

Third, the manufacturing sector developed in a high-end manner, and investment in the high-tech manufacturing industry increased. All sectors have fostered and strengthened new quality productive forces, increased investment in scientific and technological innovation, and investment in high-tech manufacturing grew rapidly. In the first two months, investment in aerospace vehicle and equipment manufacturing increased by 27.1% year on year, and investment in computer and office equipment manufacturing increased by 31.6%.

It is also worth noting that since the beginning of this year, the large-scale equipment renewal policy has been vigorously promoted, which has not only promoted manufacturing production, but also strongly supported investment growth. In the first two months, investment in the purchasing of equipment, tools and implements increased by 18% year on year, 2.3 percentage points faster than that of the previous year, and its contribution to total investment growth reached 62.3%.

In the next stage, China's manufacturing industry has more potential for further development, and there are many favorable factors for the sustained growth of manufacturing investment. First, the industrial upgrading is accelerating. The country is accelerating its progress toward becoming a manufacturing powerhouse, and the manufacturing industry is developing in a high-end, intelligent and green direction with strong momentum. We need to further increase investment to accelerate the cultivation of new quality productive forces, promote the transformation and upgrading of traditional industries, vigorously develop emerging industries and plan for industries of the future. Second, breakthroughs in scientific and technological innovation are leading development. In recent years, China has made breakthroughs in such fields as large-scale AI models, humanoid robots, quantum communications and semiconductors. Innovative products and applications such as AI Plus have been accelerated, driving a surge in demand for related products and effectively boosting investment growth in related industries. Third, policy support is playing an obvious role. The Central Economic Work Conference and the national "two sessions" made comprehensive deployments regarding the expansion of effective investment, and all localities have made efforts to implement major national projects and programs, including those aligned with major national strategies, building up security capacity in key areas, as well as the large-scale renewal of equipment and the trade-in of consumer goods, and have strengthened the guarantee of projects, funds and other elements, which will strongly support the growth of manufacturing investment.

In the next stage, we must fully implement the guiding principles of the Central Economic Work Conference and the national "two sessions," actively expand effective investment, focus on improving investment efficiency, take well-targeted steps, give full play to the role of various government investment tools, better mobilize social investment, promote stable investment growth, and give full play to the role of investment in expanding demand and improving supply. Thank you.

Reuters:

How do you predict the economy will perform in the first quarter? From a consumption perspective, do you think we can see the effects of the policies to boost consumption? And what impact will the U.S. tariffs have on China's economy going forward? Thank you.

Fu Linghui:

Thank you for your questions. Amid the complex environment, everyone is paying more attention to the situation in the first quarter. In January and February this year, it can be said that the effect of macro policies continued to emerge, the economy started off smoothly, and the development trend took a new turn for the better. Judging from recent developments, although the external environment has become more complex and severe, unilateralism and protectionism have intensified, global monetary policies have become divergent, the risk of volatility in the international market has increased, domestic demand has been weak, and some companies have encountered difficulties in production and operation, the long-term positive trend of the Chinese economy has not changed. China has obvious advantages in terms of its enormous market, complete industrial system and abundant human resources. There is broad incremental space for upgrading demand, optimizing the structure and transforming old growth drivers into new ones. Both existing policies and incremental policies continue to be effective. The economy is expected to maintain a generally stable development trend with steady progress in the first quarter. The specific aspects are as follows:

First, the economy has continued to recover. In the first two months, production and supply grew steadily, consumption and investment rose steadily, and the growth rates of most major indicators were faster than the whole of last year, laying a good foundation for a promising start for the Chinese economy in the first quarter. In the first two months, the value added of industrial enterprises above designated size grew by 5.9% year on year, 0.1 percentage point higher than the whole of the previous year. The Index of Services Production grew by 5.6% year on year, 0.4 percentage point higher than the previous year. Investment in fixed assets grew by 4.1%, 0.9 percentage point higher than the whole of the previous year. Total retail sales of consumer goods increased by 4%, 0.5 percentage point higher than the previous year. These main indicators show a steady upward trend.

Second, domestic demand is expected to gradually expand. In terms of consumption, recently, the General Office of the CPC Central Committee and the General Office of the State Council issued a special action plan to boost consumption. All localities and government departments have successfully launched measures to boost consumption and benefit the public. By making greater efforts to promote consumer goods trade-in programs in more areas and innovating diversified consumption scenarios, these initiatives are expected to drive the steady growth of consumption. In terms of the consumer confidence index, the February index was 0.9 percentage point higher than the previous month, rising for the third consecutive month. In terms of investment, all parties have increased their efforts to stabilize investment, strengthening support for projects, funds and other production factors. They have also increased investment in infrastructure related to people's lives and innovation, which is conducive to continuous investment growth. In the first two months, infrastructure investment rose 5.6% year on year, an acceleration of 1.2 percentage points from last year. Investment in high-tech industries grew by 9.7%, significantly outpacing overall investment growth.

Third, the effects of macroeconomic policies continue to be evident. Greater efforts have been made to promote large-scale equipment renewal and consumer goods trade-ins, and these policies have continued to take effect. Based on the situation in the first two months, driven by the expansion of consumer goods trade-ins, retail sales of household appliances and audio-visual equipment, furniture, stationery and office supplies and communication equipment by enterprises above designated size all posted double-digit growth. With large-scale equipment renewal driving growth, purchase of equipment and instruments rose 18%. The gradual implementation of more proactive fiscal policies and a moderately accommodative monetary policy will support sustained economic recovery and improvement.

Fourth, market expectations and confidence have improved. With macroeconomic policies yielding positive results, the economy is recovering and trending upward. The property and stock markets have exhibited positive changes, and breakthroughs in cutting-edge technological fields like domestic large-scale AI models and humanoid robots have boosted social confidence. In January and February, the real estate market continued to exhibit a stable trend, while transaction volume and turnover on the Shanghai and Shenzhen stock exchanges maintained rapid growth. The expectations of business entities continued to improve. In February, the manufacturing PMI increased significantly, and the non-manufacturing business activity index remained within the expansionary range. These positive changes contribute to the expansion of production and demand, and help promote the smooth circulation of the economy.

Overall, despite facing certain risks and challenges, China's economic fundamentals remain sound, with multiple advantages, strong resilience, and significant potential. The supporting conditions and fundamental trends for long-term sound economic development remain unchanged. As macroeconomic policies continue to take effect, the economy in the first quarter is expected to maintain overall stability and make steady progress. Thank you.

Dingduan News:

As outlined in this year's government work report, key development targets this year include a surveyed urban unemployment rate of around 5.5% and the creation of over 12 million new urban jobs. What is the state of employment currently? Thank you.

Fu Linghui:

Thank you for your question. Employment impacts people's livelihoods and is a concern for everyone involved. At the start of this year, relevant departments began implementing proactive measures to stabilize and promote employment. They have supported diverse business entities in adding jobs to drive the expansion and upgrading of employment opportunities. Overall, employment has remained largely stable. Based on past experience, January and February are typically the months when migrant workers return home before the Spring Festival and then return to work after it. During this period, there are certain fluctuations in the supply and demand of the labor market, which often lead to a seasonal rise in the surveyed urban unemployment rate. As workers gradually return to their posts following the Spring Festival, the urban unemployment rate typically decreases. This year's circumstances have largely followed this trend. In January and February, the national surveyed urban unemployment rate increased. In February, the rate stood at 5.4%, which was 0.2 percentage point higher than the previous month. Overall, the fluctuation remains within a normal range, and the overall stability of employment has not changed. On a two-month average, the surveyed urban unemployment rate for January and February was 5.3%, roughly the same as for the same period last year.

However, it should also be noted that stabilizing and promoting employment this year will continue to require substantial and sustained efforts. The current international environment is complex and challenging, and the foundation for China's economic recovery and improvement remains fragile.

This year, ensuring stable employment will be crucial, given the 12.22 million new college graduates, the need to maintain over 30 million jobs for those lifted out of  poverty, and the substantial number of rural migrant workers. Consequently, this year's government work report emphasizes the need for increased efforts to stabilize and expand employment, refine the employment-first policy, promote full employment and improve job quality. Furthermore, it proposes implementing supportive plans in key sectors, conducting extensive vocational training programs, enhancing services for employment and new businesses, and bolstering protections for workers' rights and interests. These measures will support high-quality and full employment.

In the next phase, as China expands demand across all sectors and makes concerted efforts to drive high-quality development — through the transformation and upgrading of traditional industries, as well as the cultivation and growth of emerging industries and new business formats — a solid foundation will be established for promoting employment. In addition, the employment-first policy continues to take effect, and the employment environment is improving. These factors contribute to maintaining overall employment stability. Thank you.

Shou Xiaoli:

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

The Poster News APP:

During this year's national "two sessions," scientific and technological innovation was undoubtedly a hot topic, with keywords such as new quality productive forces, AI Plus and low-altitude economy sparking heated discussions. Based on data from January and February, how has scientific and technological innovation driven the development of new quality productive forces? Thank you.

Fu Linghui:

Thank you for your question. As you mentioned, the development of new quality productive forces is indeed of great interest to all parties. The CPC Central Committee has attached great importance to cultivating and developing new quality productive forces. All localities and government departments have actively introduced measures supporting new quality productive forces, which continues to produce effects. Looking at the situation in the first two months, new breakthroughs have been made in scientific and technological innovation; new industries have developed well; the digital and green economies have continued to grow; and the transformation and upgrading of traditional industries has been steadily advanced. New progress has been made in the development of new quality productive forces.

First, emerging industries have maintained rapid growth. Emerging industries are an important engine for developing new quality productive forces. In the first two months, the value added of high-tech manufacturing increased by 9.1% year on year, 0.2 percentage point higher than last year. Domestic AI large language models have emerged, and innovative products such as AI Plus have developed rapidly, advancing the transformation of production methods and driving the rapid growth of high-end manufacturing. From January to February, the output of high-tech products such as IC wafers, industrial robots, electric multiple units (EMUs) and civilian drones increased by 19.6%, 27%, 64% and 91.5% year on year, respectively.

Second, the vitality of the digital economy has been continuously released. The digital economy is a focal point for developing new quality productive forces. All localities and government departments have accelerated their steps to advance both the digital transformation of traditional industries and the digital industry. The digital economy has maintained a good momentum of development. In terms of industries, in the first two months, the value added of digital product manufacturing enterprises above designated size increased by 9.1% year on year, and the production index of the information transmission, software and information technology service sectors increased by 9.3%. In terms of products, the output of smart products such as 3D printing equipment and virtual reality (VR) equipment increased by 30.2% and 37.7%, respectively. The large-scale application of 5G technology has been further promoted. During the Spring Festival, 5G mobile data consumption increased by 35% year on year, accounting for 60.9% of mobile internet data consumption.

Third, the green economy has created new growth drivers. Solid steps have been taken to advance the green transition, injecting new impetus into the development of new quality productive forces. In the first two months, wind and solar power generation by enterprises above designated size increased by 10.4% and 27.4% year on year, respectively; and the output of green products such as NEVs, lithium-ion power batteries for vehicles, and carbon fiber and its composite materials increased by 47.7%, 35.4% and 51.5%, respectively.

Fourth, industrial transformation and upgrading has been advancing steadily. The digital transformation and intelligent upgrading of industries has added new sources for the development of new quality productive forces. In the first two months, investment in the upgrading of manufacturing technologies increased by 10% year on year, 5.9 percentage points higher than the growth rate of total investment. At present, China has built more than 30,000 basic-level smart factories, more than 1,200 advanced-level smart factories, and more than 230 excellence-level smart factories, which will effectively empower industrial transformation and upgrading.

Overall, since the beginning of this year, new quality productive forces have grown and expanded and have sustained good development momentum. Next, we will make greater efforts to stimulate the vitality of traditional industries, accelerate the cultivation and development of emerging industries, and actively lay the groundwork for future industries and bolster the development of new quality productive forces to inject more new impetus into China's economic growth. Thank you.

Shou Xiaoli:

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

Translated and edited by Yang Chuanli, Liao Jiaxin, Gong Yingchun, Wang Yanfang, Yan Xiaoqing, Xu Xiaoxuan, Yang Xi, Xu Kailin, Wang Wei, Fan Junmei, Liu Sitong, Li Huiru, Li Xiao, Zhang Junmian, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Shen Danyang, head of the government work report drafting team and director of the State Council Research Office

Mr. Chen Changsheng, a member of the government work report drafting team and deputy director of the State Council Research Office

Chairperson:

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

Date:

March 5, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press briefing held by the State Council Information Office (SCIO). Today, we have invited Mr. Shen Danyang, head of the government work report drafting team and director of the State Council Research Office, and Mr. Chen Changsheng, a member of the drafting team and deputy director of the State Council Research Office, to introduce the report and answer your questions.

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

Shen Danyang:

Hello, everyone. It is a pleasure to meet with you and introduce the drafting of the Report on the Work of the Government. This morning, Premier Li Qiang delivered the government work report at the third session of the 14th National People's Congress (NPC). My colleagues and I, who participated in the drafting of the report, listened attentively to the premier as he delivered the report in the Great Hall of the People. As members of the drafting team, we were already familiar with the content, but listening to the report being delivered was still exciting and inspiring.

Since the opening of the session, we have been following the media coverage, and we are pleased to see positive feedback and comments from all sides. In interviews after the opening meeting, we also noticed that many deputies to the NPC and members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) said that the report addresses social concerns, responds to various expectations, and will effectively boost confidence. One NPC deputy stated that this year's report is targeted, concise and foresighted, earnest and down-to-earth, and will gain wide recognition. He expressed his strong appreciation and support. Many netizens posted online, expressing their pride in the country's new achievements and feeling motivated by the new goals, tasks and policies proposed in the report. One netizen said that the government work report contains many important details, from economic growth to people's well-being, all affecting the everyday lives of ordinary people and aiming for concrete development achievements that bring tangible benefits to the public. There were many similar remarks, which I imagine you have also noticed.

Reporting to the NPC on the work of the government is a statutory duty of the State Council. Diligently drafting the government work report is extremely important, and the Central Committee of the Communist Party of China (CPC) and the State Council attach great importance to it. General Secretary Xi Jinping presided over meetings of the Political Bureau of the CPC Central Committee and its standing committee to review the report, and made important instructions and clear requirements multiple times, pointing the way and providing the basic principles for drafting the report. Premier Li Qiang was personally in charge of drafting the report, convening executive meetings and plenary meetings of the State Council to study and discuss the report, holding multiple symposiums to listen to comments and suggestions, and putting forward clear requirements and concrete thoughts on the framework, content and expression of the report. Other leading officials of the State Council also provided guidance on the drafting and revision of the report.

The drafting team, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, earnestly studied and comprehended the guiding principles of the 20th CPC National Congress, the second and third plenary sessions of the 20th CPC Central Committee, and the Central Economic Work Conference. During the drafting process, great importance was attached to soliciting and reflecting ideas from all sides. It can be said that the drafting of the report was a democratic process of pooling wisdom from all sides to address social expectations and adopt increasingly refined, practical policies. The ideas and suggestions reflected in the report mainly came from three channels.

First, the premier directly listened to ideas and suggestions. In late January, Premier Li Qiang hosted three symposiums: one with experts, entrepreneurs and people working in the fields of education, science, culture, health care and sports; one with leaders of the central committees of non-Communist parties and the All-China Federation of Industry and Commerce, as well as individuals with no party affiliation; and one with leading government officials from various provinces, cities, counties and townships (towns) which was held in Hefei, Anhui province.

Second, we collected ideas from all localities and departments. During the initial stage of drafting the government work report, our team listened to the thoughts and suggestions of NPC deputies, CPPCC members, staff of relevant departments and enterprises, as well as experts and scholars, through thematic surveys and consultation meetings. After the report was drafted, it was sent to different localities, departments and entities for feedback according to procedures. Nearly 4,000 copies were sent out and returned, from which more than 1,000 comments and suggestions were extracted.

Third, we utilized media platforms to solicit opinions. For example, starting from December last year, www.gov.cn, together with 21 online platforms and some government websites, launched the online campaign titled "@State Council, Share Your Views on 2025 China's Government Work Report" to collect suggestions from internet users. As of 9 a.m. on March 5, just before we came here, we checked and found a total of 2.04 million suggestions. The internet users who left messages and offered suggestions come from a wide range of backgrounds, including different age groups, industries and regions. The drafting group carefully selected over 2,000 representative suggestions from them.

For opinions and suggestions collected from the above three channels, the drafting group carefully studied each one and adopted as many as possible. In the coming days, we will continue to revise and improve the report based on the opinions and suggestions of the NPC deputies and CPPCC members.

This year's report is still divided into three main parts. The first part is a review and summary of last year's work and achievements. The second part elaborates on the overall requirements, main targets and policy orientations for the economy and social development this year. The third part proposes tasks in 10 key areas that the government should focus on this year. At the same time, it also covers work related to government performance, as well as ethnic affairs, religious affairs, overseas Chinese affairs, Hong Kong and Macao, Taiwan, national defense and foreign affairs. The report emphasizes a simple, practical and down-to-earth writing style, using language that is as simple and concise as possible, and avoiding professional terminology, with the aim of making it easy for the public to understand.

That concludes my introduction. Next, my colleague Mr. Chen and I are willing to answer your questions on the drafting of the report and related issues. Thank you.

Shou Xiaoli:

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

CCTV:

Mr. Shen, as the head of the drafting group for this year's government work report, could you please introduce the key points and features of this year's report? Thank you.

Shen Danyang:

Thank you for your question. This year's government work report prominently embodies the comprehensive implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the decisions and deployments of the Party Central Committee. From the very beginning of the drafting process, Premier Li Qiang made it clear that we must thoroughly study and implement the important speeches and instructions of General Secretary Xi Jinping, and strictly carry out the decisions and deployments of the Party Central Committee. The main content of the report, including the review and summary of last year's work, the overall requirements for the government's work this year, the main targets, macro policy orientations and major tasks, were all drafted in accordance with the guiding principles of General Secretary Xi Jinping's important speech at last year's Central Economic Work Conference. The drafting group earnestly studied and grasped the main principles of General Secretary Xi Jinping's latest important speeches and instructions and the latest meetings and documents of the Party Central Committee, and fully reflected them in the report. At the same time, a series of specific work measures were proposed in combination with the actual conditions of various fields, striving to refine and implement the decisions and deployments of the Party Central Committee to ensure their effective implementation.

This year's report particularly emphasizes high quality, reform, people's living standards, and strengthening confidence. It can be said that this year's report focuses on promoting high-quality development, deepening reform, prioritizing people's livelihoods, and boosting confidence. I will elaborate on these four aspects.

First, this year's report particularly emphasizes promoting high-quality development. The report stresses that to fulfill the goals and tasks for this year, we must thoroughly implement Xi Jinping Thought on the Economy and focus on the top priority of high-quality development. We must work to both improve the quality of growth and appropriately increase output. The report outlines the annual work plan and key tasks for 2025, focusing on building a high-level socialist market economy system, developing a modern industrial system, promoting comprehensive rural revitalization, fostering coordinated regional development, and advancing high-level opening up. It emphasizes the thorough integration of high-quality development requirements across all stages and aspects of economic and social progress.

Second, this year's report particularly emphasizes further deepening all-round reform. The report thoroughly implements the guiding principles of the third plenary session of the 20th CPC Central Committee and summarizes and arranges reform work. In addition to specific deployments to accelerate the implementation of landmark reform measures, such as effectively stimulating the vitality of various business entities, advancing the construction of a unified national market, and deepening the reform of the fiscal, tax and financial systems, reform tasks and requirements have also been put forward in areas such as consumption and investment, education and technology, work related to agriculture, rural areas and rural residents, ecological and environmental protection, and social undertakings. The term "reform" appears more than 40 times throughout the report, making it a particularly important keyword this year.

Third, this year's report particularly emphasizes reflecting on the principle of "people's livelihood as paramount." For example, in the section on main targets, it proposes that personal income should grow in line with economic growth. In the section on the correct policy orientation, it proposes pursuing people-oriented macro policies. In the section on key tasks, it also puts forward a series of practical measures of concern to the people to improve their well-being. This is intended to reflect that the government's work should always adhere to a people-centered approach, respond to the needs and concerns of the people in a timely and effective manner, and wholeheartedly address people's livelihood issues, ensuring that the people can live a good life.

Fourth, this year's report particularly emphasizes boosting confidence. As we all know, China continues to face a complex and challenging development landscape this year, with increasing uncertainties in the external environment. As the saying goes, as long as confidence remains intact, solutions will always outnumber difficulties. Whether outlining the overall requirements and policy orientations for economic and social development this year, or specifying government tasks and policy measures, the report takes a pragmatic, proactive and effective approach. It fully demonstrates our unwavering determination to drive sustained economic recovery and growth, while also reflecting a clear commitment to tackling challenges head-on and making meaningful progress.

That concludes my answer. Thank you.

Yicai:

The Report on the Work of the Government has set this year's economic growth target at around 5%, which is higher than some institutional forecasts. What factors were taken into consideration when setting this target? And is the target achievable? Thank you.

Shen Danyang:

I will answer this question. The economic growth target of around 5% for this year was set after extensive research and careful deliberation. Prior to setting the target, the State Council dispatched numerous research teams across the country to conduct field research and gather feedback from relevant departments, experts, scholars and enterprises. The target was formulated based on a thorough assessment of both domestic and international conditions and various factors, striking a balance between necessity and feasibility. The target may be higher than the forecasts of some foreign institutions. But as we all know, any economic forecast is a projection based on certain assumptions, and the results are likely to change in response to environmental conditions, macro policies and reform measures — this has happened before. Based on China's development experience and global practices, achieving a development goal depends on three key factors: development momentum, available capabilities and conditions and supportive policies. Taking all these factors into account, we are very confident that this year's growth target can be achieved.

First, the positive momentum of China's economic recovery continues to strengthen and expand. While uncertainties persist in the international environment, and these factors continue to evolve, we have always emphasized that the key is to focus on our own affairs. Since the Political Bureau of the CPC Central Committee announced a package of incremental policies at a meeting on Sept. 26 last year, China's economy has shown a clear rebound. In Q2, GDP growth was 4.7%, in Q3 it was 4.6%, and in Q4 it was 5.4%, successfully achieving the annual growth target of around 5%. This momentum is highly encouraging. So, what about the situation this year? The rapid development of technology in China, particularly in artificial intelligence (AI), has captured global attention. The cultural and tourism sectors have thrived, especially during the Spring Festival, where consumption exceeded expectations. Recently, Chinese asset prices have steadily rebounded, and business confidence continues to grow. Since the beginning of this year, key economic indicators, such as the manufacturing purchasing managers' index (PMI), real estate sales and container throughput, further validate the stable growth momentum of China's economy.

Second, China has accumulated many favorable conditions for economic development. Most domestic and international research institutions agree that China still holds significant development potential, with a relatively high potential growth rate of around 5%. In recent years, new industries and growth drivers have been expanding rapidly. Sectors such as new energy vehicles (NEVs), photovoltaics and shipbuilding are now globally leading, while AI-related industries have seen explosive growth. These developments are injecting powerful new momentum into China's economic expansion. Previous negative factors, such as the real estate sector, are now showing positive changes, and their drag on growth is gradually diminishing. Even more promising is that as the reform measures outlined in the third plenary session of the 20th CPC Central Committee are implemented, the intrinsic momentum and vitality of economic development will be further unleashed.

Third, macroeconomic policies and policy measures are providing solid support. We have intensified efforts to implement a comprehensive package of both new and existing policies, ensuring their sustained effectiveness. Notably, the more proactive and effective macro policy mix being implemented this year, which is unprecedented in recent years, offers strong policy backing for economic growth. Furthermore, macroeconomic policies still have room for further adjustments and will be dynamically fine-tuned to respond to changing circumstances.

In conclusion, setting a growth target of around 5% is in line with China's current realities and the laws of economic development, making it an achievable goal. However, achieving this target will not be easy and will demand considerable effort. Thank you.

21st Century Business Herald:

The report proposes implementing more proactive and effective macro policies. What are the key considerations behind this approach? In which areas will this approach be reflected? What innovations can we expect in the implementation of macro policies this year? Thank you.

Shen Danyang:

I would like to invite Mr. Chen to answer this question. He was once head of the Macroeconomic Research Department at the Development Research Center of the State Council and deputy director of the center, and so is well-placed to address this issue given his extensive experience in macroeconomic research.

Chen Changsheng:

Thank you for your question. The issue you raised has been a focus of attention since last year's Central Economic Work Conference. The premier's report this morning revealed the details. It's important to note that the Political Bureau of the CPC Central Committee made a decisive move on Sept. 26 last year by implementing a package of incremental policies, which resulted in positive shifts in economic performance, increased confidence and a clear economic rebound. This year's report calls for more proactive and effective macro policies, continuing the policy approach outlined at the Political Bureau of the CPC Central Committee meeting on Sept. 26 last year. From a macroeconomic perspective, external uncertainties are increasing, and domestic aggregate demand remains insufficient, with weak consumption in particular standing out as a prominent issue. These challenges make it necessary to implement stronger counter-cyclical adjustments through macro policies. From the perspective of policy space, we are also well-positioned. For example, China's government debt ratio is around 70%, which is lower than that of major economies, with the central government's debt level being particularly low, providing significant room for borrowing. Globally, many countries are currently adopting accommodative monetary policies, and given China's price level, there is considerable room for maneuvering in monetary policy.

How can we embody the principle of being "more proactive and effective?" You all read the report delivered by the premier this morning. Much of the data was released for the first time, and some even exceeded expectations. Being "more proactive and effective" can be understood from four aspects: First, in terms of policy orientation, this is the first time we have proposed "a more proactive fiscal policy." We have also replaced the "prudent monetary policy" implemented for 14 consecutive years with "an appropriately accommodative monetary policy." This combination of macroeconomic policies is designed to deliver a clear and strong policy signal to people of all sectors. Second, in terms of policy support, this year's deficit-to-GDP ratio is set at approximately 4%, representing a 1 percentage point increase from last year. The government deficit is projected at 5.66 trillion yuan. In addition, a total of 1.3 trillion yuan in ultra-long special treasury bonds and 4.4 trillion yuan in local government special-purpose bonds will be issued, both reaching record highs. In total, this year's new government debt will reach 11.86 trillion yuan, an increase of 2.9 trillion yuan compared to last year. This scale is very large. We will see monetary policy play a greater role in adjusting both the monetary aggregate and structure. The policy will include timely cuts to required reserve ratios and interest rates, providing stronger support for the real economy and aiming to reduce overall financing costs. Third, regarding timing, policies should be implemented as soon as possible, which in itself reflects the policy support. Some policies should be implemented as soon as they are decided — better early than late — to stay ahead of any uncertainties. Once a policy is finalized, we should act decisively and with ample force to maximize its effectiveness. Fourth, with regard to coordination, we will further strengthen the alignment of macro policy orientations, enhance evaluations of policy consistency, and improve coordination and collaboration among various departments. We will also focus on prominent issues and pool policy resources to improve policy coordination, creating a combined impact greater than the sum of individual actions.

If you continue to pay attention to the report or read it closely, you will find that it fully embodies the innovative approaches to macroeconomic regulation introduced by the CPC Central Committee since the meeting of the Political Bureau of the CPC Central Committee held on Sept. 26. For example, the report explicitly states that we should pursue people-oriented macro policies. If you read it more carefully, you may notice some new expressions. For instance, the report challenges the conventional notion that "consumption is a slow variable," gives boosting consumption a more prominent position, and promotes synergy between increasing consumption and expanding investment. Another example is the report's emphasis on asset prices in macroeconomic regulation. For the first time, ensuring stability in both the real estate market and the stock market has been included as one of the overall requirements, as noted by some reporters familiar with macroeconomics. Additionally, the report highlights that more policy resources will be directed toward serving the people and meeting their needs. These are examples of innovations in macro policies. By creating a positive interplay between economic growth and improvements in people's lives, we aim to better promote high-quality development, stabilizing both growth and employment. Thank you.

Lianhe Zaobao:

This year's government work report emphasizes boosting consumption. What are the main challenges in this area? What new policies and measures will be implemented to vigorously boost consumption? Thank you.

Shen Danyang:

I'll answer these questions. Both consumption and investment are key components of domestic demand. Given the problems you mentioned, you might have observed that the government work report identifies "stimulating domestic demand across the board" as the first of the 10 key tasks for 2025. In light of the fact that insufficient demand is a major issue facing the Chinese economy, and given that changes in the international environment may exert new impacts on external demand, we need to place a greater focus on domestic demand in order to drive economic development. Therefore, the report emphasizes the need to stimulate domestic demand across the board, which requires comprehensive measures to tap the potential of domestic demand across all sectors, making it the main engine and anchor for economic growth.

To expand domestic demand, the report assigns a more prominent role to boosting consumption. Greater efforts are needed to address the following key issues: First, the lack of purchasing power; second, the shortage of quality products and services; and third, the need for further improvement in the consumption environment. Therefore, this year, on the basis of increasing the intensity and expanding the scope of support for the consumer goods trade-in program, we will also emphasize the "three priorities" and implement "one action." The "three priorities" include increasing people's incomes and reducing their burdens to enhance spending power, enhancing the supply of quality products and services to drive effective demand, and improving the consumption environment to promote consumer spending. We will also implement "one special action," which involves launching special initiatives to boost consumption. Relevant departments are currently developing an action plan and supporting policies for this purpose, which will be introduced and implemented as soon as possible.

While boosting consumption, the report also outlines targeted measures to strengthen investment. Addressing persistent challenges in the investment sector, it emphasizes the need to expand effective investment and boost investment returns. In terms of funding, we will simultaneously expand funding channels and increase the scale of funding through substantially enlarged government investments. These investments include ultra-long special treasury bonds, central government budgeted investments and local government special-purpose bonds. In terms of management, we'll streamline processes for local government special-purpose bonds, implement a negative list for investment areas, delegate authority for project review and approval, and increase ultra-long-term loans along with other forms of financing support. For investment direction, we'll encourage more investment in the service sector, use government investment to stimulate private investment, implement policies designed to spur the growth of the private sector, and support and encourage the development of private investment. Thanks for your questions.

Market News International:

What are the considerations behind setting this year's CPI target increase at around 2%? What policy measures will be implemented to promote a moderate rise in prices? Thank you.

Shen Danyang:

These questions will be answered by Mr. Chen.

Chen Changsheng:

Thanks for your questions. This is a topic of broad societal concern that spans both macro and micro aspects. Prices are fundamental signals in a market economy, acting as the "body temperature" of economic operations. Neither excessively high nor persistently low levels are desirable. You may have noticed that China's price levels have generally stayed low over the past two years. From a static consumer perspective, this may seem like a good thing, as the same 100 yuan can buy more goods. However, from a dynamic perspective of national economic circulation, persistently low prices pose challenges. They result in higher real interest rates, heavier debt burdens, reduced corporate investment, and fewer opportunities for employment and income growth. Historical experiences and practices from countries worldwide indicate that moderate price increases are signs of healthy economic functioning.

In this year's government work report, the CPI increase is projected at around 2%, differing from previous years and signaling a more proactive, policy-driven approach. The rationale is to strengthen the guiding role of price indicators for both society and the market, as current downward price pressures exceed upward trends. By implementing policies to promote a moderate rise in prices, we can protect people's basic livelihoods. This approach also helps boost market confidence, encourages businesses to invest more, and creates more opportunities for citizens to find jobs and increase their income, ultimately benefiting the overall macroeconomic cycle.

In terms of this year's deployment, you can closely review the government work report, which outlines four key measures. First, we will intensify counter-cyclical adjustments in our macroeconomic policies. We will leverage fiscal, monetary and other policies to balance supply and demand. Second, we will prioritize stimulating consumption to tap demand-side potential. Consumption is the ultimate demand, and robust consumption fuels national economic circulation and helps stabilize prices. Third, we will take comprehensive steps to address rat race competition and price wars. There are profound underlying reasons behind price wars. We should take measures such as strengthening standards, enhancing supervision, promoting industry self-regulation, and regulating local governments' investment attraction practices. These steps will ensure prices reflect quality, reinforce the principle of "you get what you pay for," and prevent a situation where "bad money drives out good." Fourth, we will make greater efforts to stabilize the real estate market and the stock market. The real estate and stock markets serve as critical economic barometers, with real estate constituting the largest share of household assets. Stabilizing the real estate and stock markets can unleash wealth effects, boost consumption, and facilitate moderate price recovery. Thank you.

Economic Daily:

We have noticed that the government work report reviews the hard-won achievements of the past year through the dual lenses of "stability" and "progress." Could you provide further interpretation? Thank you.

Shen Danyang:

I'll answer this question. Over the past year, China has faced both challenges and achievements, with the achievements being particularly inspiring. This morning, Premier Li Qiang highlighted these accomplishments through the dual lenses of "stability" and "progress" in the government work report. While the report broadly covered key achievements, space constraints limited detailed elaboration on each success. Here, I'd like to highlight three notable points to further supplement the highlights of last year's government work.

The first notable point is the rebound and upward momentum in the economy. In the second and third quarters of last year, China's economic operations faced significant downward pressure due to various domestic and international factors. Following decisive decisions made at a meeting of the Political Bureau of the Communist Party of China Central Committee on Sept. 26, the State Council fully implemented a package of incremental policies. This led to a significant recovery in the economic growth in the fourth quarter, with its growth rate reaching 5.4% and contributing to an annual growth rate of 5%. The GDP rose to 134.9 trillion yuan, exceeding the 130 trillion yuan mark for the first time. Globally, this growth rate not only surpassed the world average of about 3% and the overall pace of emerging markets and developing economies but also outpaced the growth rate of the U.S., Germany and Japan. Among the world's top four major economies, China maintained the highest growth rate. China's contribution to global economic growth remains around 30%, continuing to be a significant engine for the world's economic growth. As the saying goes, "One does not know the difficulty until one has experienced it." Such a rate of economic growth, combined with this rebound momentum, is truly remarkable and even more precious.

Second, the development of new quality productive forces has significantly accelerated. In terms of scientific and technological innovation, the report highlighted major achievements such as the "Chang'e-6" mission and the Mengxiang ocean drilling vessel. In fact, there are many more examples like these. For instance, China's domestically developed third-generation superconducting quantum computer, Origin Wukong, has begun operating, and the China-standard high-speed train prototype capable of reaching a speed of 450 kilometers per hour has completed both its design and manufacturing phases. China reached 11th position in the Global Innovation Index, 2024 rankings, making it one of the fastest 10-year climbers. In terms of industrial development, high-tech industries such as aerospace and electronic communications have witnessed rapid expansion. Meanwhile, there has been further enhancement in innovation capability within sectors like high-end equipment and artificial intelligence. Last year, the added value of the high-tech manufacturing industry increased by 8.9%, while that of the equipment manufacturing industry rose by 7.7%. These growth rates were 3.1 and 1.9 percentage points higher, respectively, than the overall growth rate of industries above designated size.

Third, significant strides have been made to ensure and improve the people's wellbeing. Last year, numerous measures to enhance people's livelihoods were introduced and implemented. Some were highlighted in the government work report, while others were not included due to space constraints. For example, in the area of education, the standard of living subsidies for students from economically disadvantaged families in compulsory education were raised, benefiting almost 20 million students nationwide. For social security, the basic pension for retirees rose by 3%, and special one-time living subsidies were provided to more than 11 million in need. Regarding housing, nearly 2 million units of resettlement housing were either built or delivered. In terms of consolidating the gains of poverty elimination, efforts to expand work-as-relief programs were intensified, enabling more than 33 million people who have been lifted out of poverty to secure employment. Notable progress was made in relation to efforts to improve people's wellbeing.

I'll conclude here due to time constraints, despite there being much more that could be discussed. Thank you.

Phoenix TV:

At its third plenary session, the 20th CPC Central Committee set forth plans for further deepening reform comprehensively. The government work report also includes specific arrangements for reform and opening up. Could you shed light on the key sectors targeted for reform initiatives this year? And what new measures will be implemented to expand opening up?

Shen Danyang:

I will answer this question. This year, the government work report primarily focuses on implementing the reform plans outlined in the third plenary session of the 20th CPC Central Committee. Throughout the document, it embodies the principles and requirements of reform, emphasizing the need to effectively implement annual reform tasks. It highlights the importance of both comprehensive advancement across all sectors and achieving breakthroughs in key areas, particularly in accelerating the implementation of landmark reform measures. The report outlines a wide range of reform measures. Here, I will highlight just three of them. Regarding reform of the fiscal and taxation systems, we will press ahead with moving excise tax collection further down the production-to-consumption chain, with the power of collection steadily being passed to local governments this year. This effort has been proposed for several years, and now, there is a firm commitment to speeding up its implementation. This reform will have a substantial impact and provide significant advantages. It alleviates financial pressure on producers without increasing the burden on taxpayers. Furthermore, it will encourage local governments to improve the consumption environment and actively bolster local consumption. For education reform, the report proposes a phased implementation of free preschool education. This is seen as an essential reform measure to ensure equitable preschool access. It offers numerous benefits to the public and society, helping to reduce family childcare and education costs, as well as contributing to the long-term demographic stability. In terms of health care reform, the report underscores the need to deepen the reform of public hospitals with a focus on public welfare. This will help effectively enhance the service quality of public hospitals, making health care more reliable and convenient for the public. Many breakthrough and landmark reform measures are mentioned in the report. However, due to time constraints, I am unable to elaborate on them one by one.

Speaking of openness, opening up is a key strategy for China's development. The Chinese government will steadfastly promote greater openness, continually widening its doors to the world. This year, the report also proposes several new measures to enhance openness, emphasizing the need to steadily expand institutional opening up and take the initiative to open wider and advance unilateral opening up in a well-ordered way, and continue fostering a world-class business environment that is market-oriented, law-based, and internationalized. For instance, the report proposes to actively promote foreign investment. This year, we will further relax market access for foreign investment, expand pilot projects to open up sectors including telecommunications, health care and education, revise and extend the "Catalog of Encouraged Industries for Foreign Investment," and broaden the fields and scope of foreign investment. Another example is the effort to strengthen support services for foreign-invested enterprises, optimize project services throughout the entire process, expand financing channels for these enterprises, and facilitate easier personnel exchanges. And there are, in fact, many more measures for opening up like these efforts. These measures will offer more opportunities and better conditions for foreign enterprises and investors to develop in China. We believe that as long as foreign investors seize favorable opportunities to make long-term plans and actively invest in and cooperate with China, they will undoubtedly be able to benefit from those opportunities arising from China's ever-expanding market. Thank you.

Zhinews of Shenzhen Satellite TV:

The report emphasizes the need to effectively stimulate the vitality of various business entities. As you mentioned earlier, this year's report particularly focuses on boosting confidence. May I ask what effective measures will be taken this year to enhance enterprise vitality, improve business expectations and boost confidence? Thank you.

Shen Danyang:

As mentioned earlier, people are particularly keen on understanding how this year's economic and social development targets will be met, and your question is closely tied to this topic. We believe that to achieve this year's economic and social development goals, it is necessary to focus on policy efforts, but even more crucially, to stimulate the internal momentum of various business entities. Once the internal momentum is boosted, it will continuously give full play to its supporting role. In recent years, the CPC Central Committee and the State Council have given considerable attention to issues affecting businesses, especially small- and medium-sized enterprises (SMEs) and private companies. We have consistently pushed for solutions and made significant progress. Not long ago, General Secretary Xi Jinping attended a symposium for private enterprises, where he delivered an important speech. I believe everyone can perceive the concern and emphasis that the CPC Central Committee has placed on the development of the private sector. According to the requirements of the government work report, a lot of work will be done this year to stimulate the vitality of various business entities and boost the confidence of enterprises, especially private companies. Specifically, this will be achieved by solidly implementing the policies and measures that have already been introduced, focusing on three key areas: enhancing the business environment, reducing burdens and optimizing services.

Improving the environment means continuously investing significant resources to create a market environment with fair competition and maintain a stable, consistent policy environment. This is also an aspect that many enterprises are eagerly anticipating. For example, we need to guide more private investment toward major infrastructure and public wellbeing projects. We will also launch special initiatives to regulate enterprise-related law enforcement, with a focus on tackling arbitrary charges, fines, inspections and seizures. We will take resolute steps to prevent unauthorized cross-jurisdictional and profit-driven law enforcement.

Reducing burdens on businesses means helping them operate with ease by intensifying efforts to settle overdue payments owed to enterprises. Overdue payments include debts owed between businesses and those owed by governments to enterprises, with various entities owing each other across the board. This year, measures will be taken to address these issues. We will arrange local government special-purpose bonds to reduce overdue payments owed by local governments to enterprises, intensify efforts to tackle this issue at the source, and take stronger punitive actions against those who act in bad faith. Additionally, we will implement long-term mechanisms to address this issue. In fact, the State Council has already conducted research, and a series of strong measures will be implemented in due course. We need to increase financing support for private enterprises and small and micro businesses and make continued, intensive efforts to resolve the difficulties they face in accessing affordable financing.

Optimizing services means providing high-quality government services that better support the development of enterprises. The State Council has decided to take advancing one-stop government services as a leverage to improve the efficiency of government services. This is not merely a slogan but a concrete policy measure and a meaningful service initiative. The State Council has put in place specific measures and issued guidelines, and we will continue to work to ensure the implementation of those measures. We will continue to upgrade government services across all levels of government and establish mechanisms to enhance regular communication and exchanges between governments and businesses. For example, some local government officials hold enterprise symposiums, and these practices should be institutionalized to provide business leaders with a stable and efficient channel for engaging with government officials. We should conduct service-oriented administration. That's all from me. Thank you for your question.

Cover News:

Developing a unified national market is a systematic project that involves a wide range of areas and numerous factors to consider. The government work report has outlined specific plans for this initiative for two consecutive years. What steps will be taken next? Thank you.

Shen Danyang:

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

Chen Changsheng:

Thanks for your question. The CPC Central Committee and the State Council attach great importance to developing a unified national market. As we know, China has a vast market with a population of over 1.4 billion. Even a 1% share of demand equates to a significant market of 14 million people. From a macroeconomic perspective, China sees nearly 50 trillion yuan in annual consumption, more than 50 trillion yuan in investment, and over 20 trillion yuan in imports of goods and services each year, reflecting a massive scale. China is currently transitioning from a per capita GDP of $13,000 to $20,000 as it moves to the next stage of development. Judging from international experience, this stage also releases significant demand potential. Regarding supply conditions, China maintains a vast and diverse production factor and resource market, a comprehensive industrial system and a robust transportation and logistics network. These are our unique advantages. If localities focus on self-protection, engage in small-scale circulation, and create fragmented, isolated markets, enterprises will be unable to compete effectively, and the advantages of economies of scale will be squandered. This approach is equivalent to "undermining one's own potential."

Making thorough efforts to develop a unified national market involves removing bottlenecks and obstacles that impede economic flows, maximizing the market's decisive role in resource allocation, better leveraging government functions, and effectively boosting the domestic economy.

Specifically, while continuing to implement guidelines on developing a unified national market and strengthening the implementation of regulations on fair competition review, our priority this year can be summarized as "five integrations and one elimination." The "five integrations" refer to actively promoting unified foundational institutions and rules, unified and interconnected market facilities, a unified production factor and resource market, a unified goods and services market, and unified market supervision. At the same time, further regulation of local governments' economic promotion and investment attraction practices is needed, along with a comprehensive effort to address rat race competition and genuinely eliminate harmful local protectionism.

In this process, we should attach equal importance to efforts in both establishing new systems and abolishing old ones. Abolishing old systems means resolutely eliminating local protectionism and market fragmentation. This year, strong efforts will be made to address the practice in some regions of indirectly requiring out-of-town enterprises to establish local branches, a requirement that many businesses consider highly costly. Additionally, discriminatory provisions affecting market access remain, and enterprises continue to face obstacles when exiting the market. These issues must be addressed decisively. Regarding the establishment of new systems, a new revised version of the negative list for market access will be introduced. Additionally, bidding and tendering systems and mechanisms will undergo reform and improvement. This year, specific measures will be introduced across three dimensions: "what is required, what is prohibited, and what is encouraged." These measures aim to guide localities in fully leveraging their comparative advantages and achieving differentiated competition and development. Finally, it should be emphasized that developing a unified national market is intended to enhance our participation in the global division of labor. China is a large market that is open to the world, not one that operates in isolation behind closed doors. The developing of a unified national market across China means purchasing from and selling to all parts of the country. Additionally, it means buying from and selling to the entire world. Thank you.

Kyodo News:

My questions are about the AI Plus initiative first mentioned in the 2024 government work report. Over the past year, China's AI sector – particularly its private industry – has made remarkable progress. Global attention has focused on innovations such as DeepSeek's generative AI and Unitree Robotics' AI-powered robots. This year's report also mentions the AI Plus initiative. What development blueprint has the Chinese government outlined for this initiative? What policies are being prioritized to support this emerging field? Additionally, global competition in AI is intensifying. What strategies is China considering for collaborative development with international partners, such as Japan? Thank you.

Shen Danyang:

These questions all pertain to AI-related topics. I would now like to invite Mr. Chen to address them collectively.

Chen Changsheng:

Thanks for your questions. First, your Chinese is very good. AI is a hot topic that has captured the world's attention. Last year's government work report first proposed the implementation of the AI Plus initiative. As you have seen, particularly around the Spring Festival, China's AI sector has indeed accelerated thanks to the collaborative efforts of innovation-driven high-tech enterprises, research institutions, and governments at all levels. For example, DeepSeek has gained global fame, and Unitree Robotics performed a traditional Yangge dance at the Spring Festival Gala. Everyone is wondering why the "Six Little Dragons of Hangzhou" (DeepSeek, Unitree Robotics and other four emerging tech companies in the city) have suddenly become so popular. Many AI applications are rapidly advancing in their implementation, and there is great excitement about them.

Recently, there has been a growing awareness of the positive trend in the international capital market toward re-evaluating Chinese assets. This phenomenon offers a distinct perspective on how AI drives economic development. This year's government work report proposes to continue promoting the AI Plus initiative, aiming to capitalize on the breakthrough in AI technology. It seeks to fully integrate China's digital technologies with its manufacturing strengths and market scale, drive the adoption of large-scale AI models across the board, and aim to bring AI into every household and empower every sector. We have noted that relevant departments are stepping up efforts, focusing on the following areas of work this year.

First, in terms of empowering industrial development, AI should be extensively utilized across the industrial, agricultural and service sectors. This should involve actively supporting the development and application of large-scale AI models in specific industries, ensuring that AI effectively drives the transformation and upgrading of industries, as well as empowers new quality productive forces.

Second, in terms of terminal applications, Premier Li Qiang specifically mentioned in the report this morning that we should vigorously develop next-generation intelligent terminals, including intelligent connected vehicles, AI-enabled smartphones and computers, and intelligent robots. Developing AI terminals not only leverages our manufacturing strengths to accelerate commercial implementation but also aligns more closely with people's needs, enabling them to enjoy intelligent living sooner.

Third, in terms of scenario cultivation, this year will witness the rollout of demonstration initiatives on the large scale application of new technologies, products, and scenarios. Provided that usage is safe, AI applications will be accelerated in areas such as the low-altitude economy, education and training, medical services, and health care. In this process, it is essential to prevent unnecessary private deployment and a project-based approach, which could lead to market fragmentation. The benefits of large-scale application, rapid iteration and continuous upgrading should be fully utilized to encourage a harmonious interaction between technological innovation and market applications.

In addition, the development of AI requires continuing breakthroughs in core technologies in key areas, accelerating the development and utilization of data, optimizing the layout of national computing resources, and so forth. AI talents, especially younger ones, should be supported by providing them with additional resources, encouraging them to take risks and innovate freely, and creating a more dynamic innovation ecosystem and an inclusive environment that enables them to excel.

Let's turn our attention to international cooperation. AI governance is a shared challenge for countries worldwide, requiring global efforts that include international cooperation to which Japan should contribute. In 2023, China released the Global AI Governance Initiative, advocating for a people-centered approach and the principle of developing AI for good, with the aim to ensure that AI develops in a direction that truly benefits human civilization. Furthermore, we advocate for the equal, fair and open use of AI for all countries, attaching great importance to the establishment of ethical principles for AI. China has expressed its support for coordinating international efforts within the United Nations framework to address issues concerning AI development, security and governance. Throughout history, technological progress has consistently played a crucial role in breaking down barriers and dismantling protectionism in all its forms. We hope that, in the current international context, AI will bring positive momentum that promotes cooperation and enhances multilateralism. Thank you.

Shou Xiaoli:

Two journalists have their hands raised. We will take the last two questions, please.

The Poster News APP:

This year's report has introduced many new measures to ensure and enhance people's well-being, which the public is eagerly anticipating. Could you provide a review and interpretation of the main aspects? Thank you.

Shen Danyang:

I'll answer this question. As you noted, this year's government work report has introduced measures aimed at ensuring and improving public well-being, which the public is eagerly awaiting. The measures proposed in the report are comprehensive, encompassing policies designed to promote income growth through various channels. These policies focus on enhancing earnings for low- and middle-income groups by reducing their financial burdens. The report includes strategies to improve agricultural profits, revitalize rural development, and increase rural incomes. Efforts will also be strengthened to stabilize and expand employment opportunities. Moreover, the report recommends enhancing basic medical and health services and improving regulatory oversight to ensure school meal and food delivery safety. These initiatives will be worth the wait. I will list a few here.

In terms of promoting employment, the report proposes increasing the coordination of funds and resources, with a focus on supporting industries with large employment capacities and groups that require stronger support. For example, it is necessary to properly address the employment issue for this year's 12.22 million college graduates, ensuring graduates find employment sooner and their parents can rest assured. It is now March, the prime time for college graduates to look for jobs. There is a saying: "Golden March, Silver April." Employers are conducting spring recruitment on campuses, and efforts should be made to organize it well and provide good services. We should spend money where it's needed, and strengthen publicity and promotion as appropriate. Some plans and arrangements are already in place. Furthermore, support should continue to be strengthened for groups such as those lifted out of poverty and migrant workers. In response to the prominent social issue of structural unemployment, large-scale vocational skills improvement training initiatives will be carried out this year. Structural unemployment means that, on one hand, some people cannot find work, while on the other hand, some positions cannot find suitable candidates. For example, there are relative shortages of workers in sectors like domestic services and elderly care, as well as operators in fields related to big data and AI, and maintenance personnel for NEV-related equipment. Targeted vocational skills training should be conducted to address these structural unemployment challenges, and we need to put efforts into this. Additionally, it is necessary to accelerate the establishment of a skills-oriented salary distribution system, supporting people in obtaining better jobs and higher incomes through skill enhancement.

In terms of social security, this year's Report on the Work of the Government proposed a series of measures to increase financial subsidies. For example, this year, the per capita financial subsidy for residents' medical insurance will increase from 670 yuan to 700 yuan, and the per capita financial subsidy for basic public health services will rise to 99 yuan. The basic pension for retirees and the minimum basic pension for urban and rural residents will be appropriately increased, benefiting 320 million people. Support and assistance for disadvantaged groups, such as those receiving subsistence allowances and people with disabilities, will continue to be strengthened. These areas all require financial expenditure, and compared to previous years, the fiscal investment in them this year is unprecedented. The public will benefit greatly, making this effort highly worthwhile.

The report also proposes a series of supportive measures for issues related to the elderly and child care that are of public concern. For example, in response to the varying needs of elderly, it proposes advancing community-supported at-home elderly care, strengthening care for functionally impaired elderly individuals, increasing support for assisted catering services for the elderly, and setting requirements for improving geriatric medicine and enhancing barrier-free, age-friendly facilities. The report also proposes measures such as issuing childcare subsidies, vigorously developing integrated childcare services, and gradually implementing free preschool education to strengthen support for childbirth and help alleviate the burden of childbearing, parenting and education on families. These measures are widely welcomed and eagerly anticipated.

There are many such measures, but I won't list them all. Thank you for your question.

Shou Xiaoli:

The last question, please.

ThePaper.cn:

The value of good policies lies in taking action and the crucial aspect is their implementation. How will the policies proposed in this year's report be implemented and deliver effective results? Thank you.

Shen Danyang:

I will address this question. The worth of any plan lies in its implementation. The State Council started early and is working diligently to ensure the effective execution of this year's government agenda. After the Spring Festival, a plenary meeting of the State Council was convened for deployment and mobilization. After the conclusion of the "two sessions," the State Council will convene another plenary meeting for further deployment, and hold an executive meeting to break down the tasks outlined in the government work report. Overall, the aim is to ensure the effective implementation of the policies in this year's report by strengthening collaborative coordination, promoting pragmatic innovation, improving administrative efficiency, and refining incentive and assessment measures. This involves many specific mechanisms and supervisory measures, and it is expected that more significant results will be achieved. For example, to promote the implementation of policies benefiting enterprises and the public, the first step is to further advance "one-stop government services." Since last year, the State Council has introduced 33 key initiatives in three batches, including business relocations, newborn registrations, housing provident fund loans, and trade-in subsidy applications. These are being systematically redesigned to offer a "one-place, one-window, one-network or one-submission" experience. The feedback from all sectors has been positive. The next step will be to include more items on the list and improve both online and offline services, thereby enhancing policy implementation efficiency and boosting convenience for the public and businesses in handling affairs. Another example is in motivating officials to focus on implementation. This requires both an improved evaluation system to stimulate the internal driving power to get things done, and a sustained effort to address formalism and reduce unnecessary burdens at the primary level. This includes cutting down on repetitive, fragmented and cumbersome inspections and assessments directed at the public, thereby allowing officials to dedicate greater attention to practical work.

Of course, the implementation of various policy measures requires the joint efforts of all sectors of society, which makes the promotion and interpretation of this year's government work report essential. The Research Office of the State Council has specifically organized the compilation of a series of reading materials, including guidebooks for the government work report, study Q&As, and face-to-face discussions on hot topic policies. This is work that is carried out every year. These supplementary reading materials will be published soon by the People's Publishing House and China Yan Shi Press. We hope they will provide useful reference for everyone to study the report, understand the report, and effectively implement the work. I would also like to take this opportunity to ask all journalist for your attention and support. That's all from me. Thank you.

Shou Xiaoli:

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

Translated and edited by Liu Sitong, Li Huiru, Liu Caiyi, Li Xiao, Yang Chuanli, Wang Xingguang, Zhang Tingting, Yan Bin, Mi Xingang, Wang Wei, Yuan Fang, Wang Yanfang, Zhou Jing, Ma Yujia, Huang Shan, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

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

Mr. Fu Linghui, spokesperson of the NBS and director general of the Department of Comprehensive Statistics of the NBS

Chairperson:

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

Date:

Jan. 17, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on economic data. Today, we have invited Mr. Kang Yi, commissioner of the National Bureau of Statistics (NBS), and Mr. Fu Linghui, spokesperson of the NBS and director general of the Department of Comprehensive Statistics of the NBS, to brief you on the performance of the national economy in 2024 and address your questions.

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

Kang Yi:

Welcome to this press conference, and thank you for your longstanding interest in and support for statistical work. The Spring Festival is just around the corner, and I would like to start by extending my early wishes for the new year.

Next, I will provide an overview of the key indicators of China’s economic performance in 2024 followed by addressing your questions.

In 2024, the economy maintained steady progress, and the main development goals were successfully achieved.

In 2024, in face of the complex and severe environment with increasing external pressures and internal difficulties, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments strictly implemented the decisions and arrangements made by the CPC Central Committee and the State Council, adhered to the general principle of seeking progress while maintaining stability, fully and faithfully applied the new development philosophy on all fronts, accelerated efforts to foster a new pattern of development, and took solid steps in pursuit of high-quality development. As a result, the national economy was generally stable with steady progress and new achievements were made in high-quality development. Particularly, with a package of incremental policies being timely rolled out, social confidence was effectively bolstered and the economy recovered remarkably. The major targets and tasks of economic and social development were achieved.

According to preliminary estimates, the gross domestic product (GDP) was 134,908.4 billion yuan in 2024, an increase of 5.0% over the previous year at constant prices. By industries, the value added of the primary industry was 9,141.4 billion yuan, up by 3.5% over last year, that of the secondary industry was 49,208.7 billion yuan, up by 5.3%, and that of the tertiary industry was 76,558.3 billion yuan, up by 5.0%. In terms of quarters, GDP increased by 5.3% in the first quarter year on year, by 4.7% in the second quarter, 4.6% in the third quarter and 5.4% in the fourth quarter. GDP for the fourth quarter increased by 1.6% quarter on quarter.

First, grain output reached a new level and production of animal husbandry grew steadily.

The total output of grain in 2024 was 706.50 million metric tons, an increase of 11.09 million metric tons over the previous year, or up by 1.6%. Of this total, the output of summer grain was 149.89 million metric tons, up by 2.6%; that of early rice was 28.17 million metric tons, down by 0.6%; and that of autumn grain reached 528.43 million metric tons, up by 1.4%. By species, the output of wheat was 140.10 million metric tons, up by 2.6%; that of corn was 294.92 million metric tons, up by 2.1%; that of rice was 207.53 million metric tons, up by 0.5%; and that of soybeans was 20.65 million metric tons, down by 0.9%. The total output of pork, beef, mutton and poultry in 2024 was 96.63 million metric tons, up by 0.2% over the previous year. Of this, the output of pork was 57.06 million metric tons, down by 1.5%; that of beef was 7.79 million metric tons, up by 3.5%; that of mutton was 5.18 million metric tons, down by 2.5%; and that of poultry was 26.60 million metric tons, up by 3.8%. The production of milk reached 40.79 million metric tons, down by 2.8%; and that of eggs was 35.88 million metric tons, up by 0.7%. In 2024, 702.56 million pigs were slaughtered, down by 3.3%, and 427.43 million pigs were registered in stock at the end of the year, down by 1.6%.

Second, industrial production saw good growth momentum, and equipment manufacturing and high-tech manufacturing grew quickly.

In 2024, the total value added of industrial enterprises above designated size increased by 5.8% over the previous year. In terms of sectors, the value added of mining was up by 3.1%, that of manufacturing was up by 6.1%, and that of production and supply of electricity, thermal power, gas and water was up by 5.3%. The value added of equipment manufacturing went up by 7.7%, and that of high-tech manufacturing up by 8.9%, which were 1.9 percentage points and 3.1 percentage points faster than that of industrial enterprises above designated size, respectively. In terms of ownership, the value added of state holding enterprises grew by 4.2%, that of share-holding enterprises was up by 6.1%, that of enterprises funded by foreign investors and investors from Hong Kong, Macao and Taiwan increased by 4.0%, and that of private enterprises was up by 5.3%. By products, the production of new energy vehicles, integrated circuits and industrial robots grew by 38.7%, 22.2% and 14.2%, respectively. In the fourth quarter, the total value added of industrial enterprises above designated size grew by 5.7% year on year. In December, the total value added of industrial enterprises above designated size grew by 6.2% year on year, or up by 0.64% month on month. In the first 11 months, the total profits made by industrial enterprises above designated size were 6,667.5 billion yuan, down by 4.7% year on year.

Kang Yi:

Third, the service sector registered continued growth, and modern services enjoyed sound development.

The value added of the service sector went up by 5.0% over the previous year. The value added of information transmission, software and information technology services grew by 10.9%, leasing and business services grew by 10.4%, transportation, storage and postal services grew by 7.0%, accommodation and catering grew by 6.4%, finance grew by 5.6%, and wholesale and retail grew by 5.5%. In the fourth quarter, the value added of service sector went up by 5.8% year on year. In December, the Index of Services Production went up by 6.5% year on year, and specifically, that of leasing and business services grew by 9.5%, finance grew by 9.3%, information transmission, software and information technology services grew by 8.8%, and transportation, storage and postal services grew by and 8.3%. In the first 11 months, the business revenue of service enterprises above designated size grew by 8.2% year on year. Of this, the business revenue of leasing and business services grew by 11.5%, information transmission, software and information technology services, and transportation grew by 9.5%, storage and postal services grew by 8.3%.

Fourth, market sales continued growing and online sales were active.

In 2024, the total retail sales of consumer goods reached 48,789.5 billion yuan, up by 3.5% over the previous year. In terms of different areas, retail sales in urban areas reached 42,116.6 billion yuan, up by 3.4%; and retail sales in rural areas stood at 6,672.9 billion yuan, up by 4.3%. Grouped by consumption patterns, the retail sales of goods were 43,217.7 billion yuan, up by 3.2%; and the income of catering was 5,571.8 billion yuan, up by 5.3%. The sales of basic living goods and certain upgraded goods witnessed good growth momentum. The retail sales of household appliances and audio-video equipment grew by 12.3%, sports and recreational articles grew by 11.1%, communication equipment grew by 9.9%, and grain, oil and food by enterprises above designated size grew by 9.9%. National online retail sales reached 15,522.5 billion yuan, up by 7.2% over the previous year. Specifically, the online retail sales of physical goods were 13,081.6 billion yuan, up by 6.5%, accounting for 26.8% of the total retail sales of consumer goods. In the fourth quarter, the total retail sales of consumer goods went up by 3.8% year on year. In December, the total retail sales of consumer goods went up by 3.7% year on year, or up by 0.12% month on month. The retail sales of services in 2024 grew by 6.2% over the previous year.

Fifth, investment in fixed assets scaled up, and investment in high-tech industries grew rapidly.

In 2024, investment in fixed assets (excluding rural households) reached 51,437.4 billion yuan, up by 3.2% over the previous year; and with real estate development investment deducted, the investment in fixed assets was up by 7.2%. Specifically, investment in infrastructure increased by 4.4%, manufacturing went up by 9.2% and real estate development was down by 10.6%. The floor space of newly-built commercial buildings sold was 973.85 million square meters, down by 12.9%; and the total sales of newly-built commercial buildings were 9,675.0 billion yuan, down by 17.1%. By industry, investment in the primary industry went up by 2.6%; that in the secondary industry up by 12.0%; and that in the tertiary industry down by 1.1%. Private investment went down by 0.1%; and with investment in real estate development deducted, private investment grew by 6.0%. Investment in high-tech industries grew by 8.0%. Specifically, investment in high-tech manufacturing and high-tech services grew by 7.0% and 10.2%, respectively. In terms of high-tech manufacturing, the investment in manufacturing of aerospace vehicles and equipment and manufacturing of computers and office devices grew by 39.5% and 7.1%, respectively. In terms of high-tech services, investment in professional technical services and in services for the transformation of sci-tech achievements went up by 30.3% and 11.4%, respectively. In December, investment in fixed assets (excluding rural households) grew by 0.33% month on month.

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

In 2024, the total value of imports and exports of goods was 43,846.8 billion yuan, an increase of 5.0% over the previous year. The total value of exports was 25,454.5 billion yuan, up by 7.1%; and the total value of imports was 18,392.3 billion yuan, up by 2.3%. Imports and exports with Belt and Road partner countries grew by 6.4%, accounting for 50.3% of total imports and exports. The exports of mechanical and electrical products grew by 8.7%, accounting for 59.4% of total exports. In December, the total value of imports and exports of goods was 4,067.0 billion yuan, up by 6.8% year on year. Specifically, the total value of exports was 2,409.9 billion yuan, up by 10.9%; and the total value of imports was 1,657.0 billion yuan, up by 1.3%.

Seventh, consumer prices were generally stable and the core consumer price index (CPI) went up slightly.

In 2024, the CPI increased by 0.2% over the previous year. Grouped by commodity categories, prices for food, tobacco and alcohol went down by 0.1%; clothing up by 1.4%; housing up by 0.1%; articles and services for daily use up by 0.5%; transportation and communication down by 1.9%; education, culture and recreation up by 1.5%; medical services and health care up by 1.3%; and other articles and services up by 3.8%. In terms of food, tobacco and alcohol prices, prices for fresh fruits went down by 3.5%, grain down by 0.1%, fresh vegetables up by 5.0%, and pork up by 7.7%. Core CPI excluding the prices of food and energy went up by 0.5%. In December, the CPI went up by 0.1% year on year, maintaining the same level month on month. In 2024, the producer prices and purchasing prices for industrial products both went down by 2.2% over the previous year; in December, the producer prices and purchasing prices for industrial products both went down by 2.3% year on year, or down by 0.1% month on month.

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

In 2024, the urban surveyed unemployment rate averaged 5.1%, 0.1 percentage point lower than that of the previous year. In December, the urban surveyed unemployment rate was 5.1%. The surveyed unemployment rate of population with local household registration was 5.3% and that of population with non-local household registration was 4.6%, of which the rate of population with non-local agricultural household registration was 4.5%. The urban surveyed unemployment rate in 31 major cities was 5.0%. Employees of enterprises worked 49.0 hours per week on average. In 2024, the number of rural migrant workers totaled 299.73 million, which was 2.20 million more than the previous year, or up by 0.7%. Specifically, local migrant workers totaled 121.02 million, up by 0.1%; and outbound migrant workers totaled 178.71 million, up by 1.2%.

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

In 2024, the nationwide per capita disposable income of residents was 41,314 yuan, a nominal increase of 5.3% over that of the previous year, or a real growth of 5.1% after deducting price factors. In terms of permanent residence, the per capita disposable income of urban households was 54,188 yuan, a nominal growth of 4.6% over the previous year or a real growth of 4.4% after deducting price factors. The per capita disposable income of rural households was 23,119 yuan, a nominal growth of 6.6% over the previous year or a real growth of 6.3% after deducting price factors. The median of the nationwide per capita disposable income nationwide was 34,707 yuan, a nominal increase of 5.1% over the previous year. Grouped by income quintile, the per capita disposable income of the low-income group reached 9,542 yuan, the lower-middle-income group 21,608 yuan, the middle-income group 33,925 yuan, the upper-middle-income group 53,359 yuan, and the high-income group 98,809 yuan. In 2024, the nationwide per capita consumption expenditure was 28,227 yuan, a nominal growth of 5.3% over the previous year or a real growth of 5.1% after deducting price factors. Per capita consumption expenditure on food, tobacco and alcohol accounted for 29.8% of the per capita consumption expenditure (Engel’s coefficient), maintaining the same level compared with that of the previous year. Per capita consumption expenditure on services went up by 7.4%, accounting for 46.1% of the per capita consumption expenditure, which was 0.9 percentage point higher than that of the previous year.

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

By the end of 2024, the national population was 1,408.28 million (including the population of 31 provinces, autonomous regions and municipalities and servicemen, but excluding residents of Hong Kong, Macao and Taiwan and foreigners living in the 31 provinces, autonomous regions and municipalities), a decrease of 1.39 million over the end of 2023. In 2024, the number of births was 9.54 million with a birth rate of 6.77 per 1,000; the number of deaths was 10.93 million with a mortality rate of 7.76 per 1,000; and the natural population growth rate was minus 0.99 per 1,000. In terms of gender, the male population was 719.09 million, and the female population was 689.19 million; and the sex ratio of the total population was 104.34 males to every 100 females. In terms of age structure, the population aged 16 to 59 was 857.98 million, accounting for 60.9% of the total population; and the population aged 60 and over was 310.31 million, accounting for 22.0% of the total population. Specifically, the population aged 65 and over was 220.23 million, accounting for 15.6% of the total population. In terms of urban-rural structure, the number of permanent residents in urban areas was 943.50 million, an increase of 10.83 million over the end of the previous year; and the number of permanent residents in rural areas was 464.78 million, a decrease of 12.22 million. The share of urban population to the total population (urbanization rate) was 67.00%, 0.84 percentage point higher than that at the end of the previous year.

Generally speaking, the national economy in 2024 was stable overall with steady progress, high-quality development advanced steadily, and new solid strides were taken in building Chinese modernization. However, we must be aware that adverse effects created by the external environment are increasing, domestic demand is insufficient, some enterprises have difficulties in production and operation, and the economy is still facing difficulties and challenges. In the next stage, we must take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, fully implement the guiding principles of the 20th CPC National Congress, and the second and third plenary sessions of the 20th CPC Central Committee, adhere to the arrangements made by the Central Economic Work Conference and adhere to the general principle of pursuing progress while ensuring stability. We must fully and faithfully apply the new development philosophy on all fronts, accelerate efforts to foster a new pattern of development and take solid steps in pursuing high-quality development. We must further deepen reform and opening up, implement more proactive and effective macro policies, expand domestic demand, promote integrated advancements in technological and industrial innovation, stabilize market expectations and boost internal vitality, so as to ensure a continued economic recovery and development.

That's all for my introduction.

Shou Xiaoli:

Thank you, Mr. Kang, for your introduction. The floor is now open for questions.

National Business Daily:

We know that the global economy in 2024 remained in a phase of cyclical adjustment, with rising protectionism and persistent geopolitical risks. Faced with multiple challenges, how did China’s economy perform overall? And were the key targets and tasks for last year successfully achieved? Thank you.

Kang Yi:

Thank you for your questions. The year 2024 marked the 75th anniversary of the founding of the People’s Republic of China and was a critical year for achieving the goals and tasks set forth in the 14th Five-Year Plan (2021-2025). Over the past year, facing the complicated and challenging environment of mounting external pressures and internal difficulties, the CPC Central Committee with Comrade Xi Jinping at its core united and led the Chinese people of all ethnic groups across the country to calmly respond to changes and take a holistic approach. As a result, the national economy in 2024 was generally stable with steady progress and high-quality development was steadily advanced. The key goals and tasks for 2024 were successfully accomplished, and new solid strides were taken in building Chinese modernization. Looking back at the extraordinary journey of 2024, I would like to summarize the year's economic performance with five hard-won achievements.

First, facing mounting external pressures and internal difficulties, China's GDP reached new heights, which was a hard-won achievement. In 2024, the international environment was complex, the momentum for global economic growth was weak, geopolitical conflicts became more acute, and trade protectionism intensified. Domestically, effective demand was insufficient, the transformation from old growth drivers to new ones was accompanied by growing pains, and some industries and enterprises faced issues in their production and operation. Facing such challenges, China's economy withstood the pressure and overcame difficulties, making new breakthroughs in its GDP and new contributions to global development. In 2024, China's GDP reached 134.9 trillion yuan, passing the 130 trillion yuan mark for the first time, increasing by 5% compared to the previous year. China remained the world's second largest economy. Globally, China's economic growth rate of 5% ranked among the top in the world's major economies and continued to be an important driver of global economic growth.

Second, the timely introduction of a package of policies effectively boosted social confidence, particularly promoting a marked economic recovery, which was a hard-won achievement. Due to various factors, China's economic growth slowed in the second and third quarters of 2024, facing considerable downward economic pressure. In response, the CPC Central Committee strengthened macro regulation in light of the changing conditions. At the meeting held by the Political Bureau of the CPC Central Committee on Sept. 26, 2024, a package of incremental policies was rolled out, greatly boosting confidence and stimulating vitality, which promoted economic recovery. In the fourth quarter of 2024, China's GDP grew by 5.4% year on year, with the growth rate 0.8 percentage point higher than the third quarter. The growth rates of the total value added of industrial enterprises above designated size, the value added of service sector, and the total retail sales of consumer goods increased by 0.7, 1.0 and 1.1 percentage points, respectively. The manufacturing PMI began to return to the expansion range in October, and the non-manufacturing business activity index continued to increase steadily, reaching 52.2% in December.

Third, during the process of overcoming economic challenges, new progress has been made in high-quality development, which was a hard-won achievement. China's economy is at a critical juncture of transformation and upgrading. Faced with difficulties and challenges, all sectors remain committed to achieving the primary task of high-quality development, adjusting measures to local conditions to develop new quality productive forces, promoting new growth drivers to build momentum, renewing and upgrading traditional driving forces, optimizing the economic structure and renewing driving forces. We have optimized and upgraded the industrial structure. In 2024, the added value of high-tech manufacturing and equipment manufacturing above designated size accounted for 16.3% and 34.6%, respectively, of the added value of industries above designated size, which represented increases of 0.6 and 1.0 percentage points from the previous year. New-type urbanization is also steadily advancing, with urbanization of the permanent population reaching 67.00% at the end of the year, up by 0.84 percentage point compared to the end of the previous year. The transition to a green and low-carbon economy is also accelerating. According to preliminary estimates, the proportion of non-fossil energy consumption in the total energy consumption in 2024 increased by 1.8 percentage points compared to the previous year. The results of high-level opening up to the outside world are also very clear, with the total value of imports and exports of goods reaching 43.8 trillion yuan, setting a new record.

Fourth, employment stability and income growth have been strengthened, and people’s living standards have been steadily guaranteed and improved, which was a hard-won achievement. Enabling people to lead happy lives is the fundamental goal of our development and our top priority. In 2024, various regions and departments thoroughly implemented measures to improve people's lives, with greater efforts to stabilize employment and promote income growth. The national surveyed urban unemployment rate averaged 5.1% for the year, down 0.1 percentage point from the previous year, and the per capita disposable income of residents increased by 5.1% in real terms, in line with economic growth. The scale of employment for people lifted out of poverty has remained stable at over 30 million for four consecutive years, and new progress has been made in education, health care, elderly care and child care.

Fifth, development and security have been coordinated, food and energy security have been strengthened, and risks have been effectively defused in key areas, which was a hard-won achievement. In 2024, China's grain output reached a historic high, surpassing the new milestone of 700 million metric tons for the first time. Total primary energy production has continued to increase, and the energy supply has been guaranteed. We optimized policies related to real estate, steadily promoted the completion of housing projects, and explored the establishment of a new model for real estate development. Since September, the real estate market has shown positive changes. In the fourth quarter, the sales area and sales volume of newly built commercial housing increased by 0.5% and 1.0% year on year, respectively, reversing the previous downward trend. A series of targeted measures have been introduced and proven effective in addressing key areas of risk such as local government debt as well as small- and medium-sized financial institutions, effectively consolidating the foundation for national security and development.

Overall, in 2024, China's economy overcame various difficulties and challenges brought by the complex internal and external environment, successfully achieved the main expected goals and tasks, promoted effective qualitative improvements and reasonable quantitative economic growth, and achieved substantial high-quality development. The achievements were truly hard-won. These are the results of the Party leading the entire nation in joint efforts, reflecting the country's economic base, numerous advantages, strong resilience and significant potential, and laying a solid foundation for the high-quality completion of the goals and tasks in the 14th Five-Year Plan. Of course, we must also clearly recognize that the adverse effects brought by the external environment are deepening, domestic demand is insufficient, some enterprises are facing difficulties in production and operation, employment and income growth are under pressure, many risks and potential dangers remain, and much effort is required to promote economic recovery and improvement. In the next stage, we must follow the decisions and arrangements of the Central Economic Work Conference, face difficulties, strengthen confidence, prioritize action and transform various favorable factors into tangible development achievements, continuously promoting sustained economic improvement.

Thank you.

TASS:

Since last September, China has introduced a series of policies, including those promoting consumption and investment. How have these policies been reflected in the economic data? And what role did they play in achieving the annual goals and tasks? Thank you.

Kang Yi:

Thank you for your questions. In 2024, the course of China's economic development has been extraordinary. The first quarter started well, but in the second and third quarters, economic pressures increased, and some new situations and problems emerged. Faced with these new situations and problems, the CPC Central Committee with Comrade Xi Jinping at its core assessed the situation and took decisive action. On Sept. 26, the meeting held by the Political Bureau of the CPC Central Committee made significant arrangements to effectively implement existing policies and introduce new policies, greatly boosting confidence, improving expectations and stimulating development momentum. The economy showed a significant rebound in the fourth quarter. According to preliminary data, GDP in the fourth quarter grew by 5.4% year on year, accelerating by 0.8 percentage point compared to the third quarter, making a decisive contribution to achieving the expected annual economic growth target. According to the performance of key indicators such as production, demand, prices, incomes and expectations, positive changes have occurred in all aspects.

First, consumption and investment are accelerating. In terms of consumption, the total retail sales of consumer goods in the fourth quarter increased by 3.8% year on year, 1.1 percentage points faster than that in the third quarter, which recorded only 2.7% growth. Consumer goods trade-in policies have driven an increase, with retail sales of household appliances and audiovisual equipment, furniture, automobiles, and building as well as decoration materials by units above the designated size in the fourth quarter collectively having boosted the total retail sales of consumer goods by around 1 percentage point. In terms of investment, driven by the "two major" projects and large-scale equipment renewals, infrastructure investment in 2024 grew by 4.4%, accelerating by 0.3 percentage point compared to the first three quarters; and investment in equipment and tools procurement grew by 15.7%, accelerating by 9.1 percentage points compared to the previous year, driving total investment growth by 2.2 percentage points.

Second, the industrial and service sectors have rebounded significantly. The expansion of market demand has promoted increased industrial production and accelerated the growth of the service industry. In terms of the industrial sector, the value-added of industries above designated size in the fourth quarter increased by 5.7% year on year, 0.7 percentage point faster than that in the third quarter. Among them, the value added of equipment manufacturing enterprises above designated size increased by 8.1% due to equipment renewal policies, accelerating by 1.1 percentage points compared to the third quarter. Capacity utilization is also improving, with the capacity utilization rate of industrial enterprises above designated size reaching 76.2% in the fourth quarter, increasing by 1.1 percentage points from the third quarter. In terms of the service industry, the value added in the fourth quarter increased by 5.8% year on year, 1 percentage point faster than the third quarter. Among them, the value added of wholesale and retail trade increased by 5.7%, transportation, storage and postal services by 7.9%, and financial services by 6.5%, accelerating by 0.7, 1.3 and 0.3 percentage points, respectively. The value added of the real estate industry turned from a 1.2% decline in the third quarter to a 2% increase, shifting from negative to positive.

Third, the price situation has shown positive changes. Market demand recovered, driving up prices. In terms of consumer prices, CPI growth rate in the fourth quarter declined to some extent, mainly due to the decrease in food prices. The core CPI, which better reflects the supply and demand relationship, has continuously risen. Since the fourth quarter, the core CPI, excluding food and energy, has increased for three months consecutively, rising 0.4% in December. Regarding prices of industrial products, improvements in industrial production and sales have also led to price stabilization. The PPI decline narrowed for two consecutive months in November and December, by 0.4 and 0.2 percentage points, respectively, compared to the previous month.

Fourth, business, resident and government incomes have been improving. The economic recovery has improved the income situation of businesses, residents and the government. In 2024, the national per capita disposable income of residents increased by 5.1% in real terms compared to the previous year, accelerating by 0.2 percentage point compared to the first three quarters. The profitability of enterprises is also improving slightly. In October and November, the year on year decline in total profits of industrial enterprises above designated size continued to narrow, decreasing by 17.1 and 2.7 percentage points, respectively, compared to the previous month. Fiscal revenue has also gradually been improving. Since September, the growth rate of fiscal revenue has turned positive, and improved month by month in October and November.

Fifth, market activity has been increasing. The combined effects of policies continue to be released, resulting in increased activity in the stock and real-estate markets, an accelerated growth in freight volume, greater money supply, and improved momentum of economic development. In the fourth quarter, the sales area and sales value of newly built commercial housing achieved positive year-on-year growth; and the trading volume and trading value of stocks in the Shanghai and Shenzhen markets increased by 1.1 times and 1.6 times, respectively, compared to the third quarter. The annual freight volume increased by 3.9% compared to the previous year, with the growth rate accelerating by 0.6 percentage point compared to the first three quarters. At the end of December, the broad money (M2) balance increased by 7.3% year on year, accelerating by 0.5 percentage point compared to the end of September.

Sixth, market expectations have been improving. The improving economic performance has driven rising confidence across various sectors. Since the fourth quarter, the purchasing managers' index (PMI) of the manufacturing industry and the service business activity index have both remained above the 50% prosperity threshold. In December, the production and business activity expectation index of the manufacturing industry was 53.3%, and the service business activity expectation index was 57.6%, both being at relatively high levels.

Looking at the main indicators from December in particular, the economic recovery trend is more evident. In December, the value added of industrial enterprises above designated size, the index of services production, and the total retail sales of consumer goods increased year on year by 6.2%, 6.5% and 3.7%, respectively, accelerating by 0.8, 0.4 and 0.7 percentage points from the previous month. Among them, the industrial growth rate is the highest it has been in the second half of the year, the growth rate of the service industry production index is at its highest point for the year, and the production-sales ratio of industrial enterprises above designated size has also risen to a high level of 98.7%.

Overall, the package of incremental policies introduced after the meeting of the Political Bureau of the CPC Central Committee on Sept. 26 effectively stimulated development vitality, expanded market demand, boosted enterprise production, enhanced market activity and strengthened development confidence. These measures played a decisive role in the fourth quarter's economic recovery and the successful achievement of annual targets. Going forward, we will implement the guiding principles of the Central Economic Work Conference, carry out more proactive and effective macro policies, and ensure a smooth and orderly transition of relevant policies between years to provide stronger support for stable economic operations and sustained recovery.

Thank you.

CCTV:

In 2024, China's total economic output exceeded 130 trillion yuan for the first time. What does this mean, and how should we interpret these changes? Thank you.

Kang Yi:

Thanks for your questions. In 2024, China's total economic output exceeded 130 trillion yuan, marking a remarkable achievement. This signifies that China's economic strength, technological capabilities and comprehensive national power have reached a new level. This also means China's development now rests on a more solid foundation, with better conditions, stronger momentum and enhanced resilience to risks. Furthermore, it demonstrates China's new and significant contributions to global development. Let's look at the specifics:

First, this indicates China's economic foundation has become more robust. Since the 18th CPC National Congress, China's total economic output has surpassed each 10-trillion-yuan threshold approximately every one to two years. China's GDP exceeded 100 trillion yuan in 2020, surpassed 110 trillion yuan in 2021, reached 120 trillion yuan in 2022, and exceeded 130 trillion yuan in 2024. Over the past decade or so, China's economy achieved a historic leap from just over 50 trillion yuan to more than 130 trillion yuan, significantly enhancing its comprehensive national strength. In 2024, China's economic growth increment alone was equivalent to the annual economic output of a medium-sized country. The level of productive forces in our country has significantly improved, with the added value of the secondary and tertiary industries reaching 49.2 trillion yuan and 76.6 trillion yuan, respectively. China produces more than 13 million new energy vehicles and over 1.6 billion mobile phones annually, firmly maintaining its position as the world's largest manufacturing country.

Second, this signifies that China has further consolidated its advantages in its super-large market and complete industrial system. The world is experiencing profound changes unseen in a century, with increasing external instability and uncertainty. Our strong economic foundation, super-large market and complete industrial system remain our greatest sources of confidence in facing risks and challenges. In 2024, China's total retail sales of consumer goods reached 48.8 trillion yuan, and fixed asset investment amounted to 51.4 trillion yuan. The role of domestic demand as the main driving force has continued to be leveraged. China ranks first in the world in goods trade, foreign exchange reserves and manufacturing scale, and second in trade in services and the size of its domestic consumer market. Our food and energy security capabilities have been strengthened, and new infrastructure — such as 5G, computing power and energy storage — are being rapidly developed. Efforts to strengthen and fortify manufacturing supply chains are being steadily advanced, solidifying the foundation for secure development.

Third, it means that China has continued to contribute to global prosperity and development. In recent years, China's annual contribution to global economic growth has been about 30%, making it the world's largest growth engine. China has unwaveringly advanced high-level opening up, introduced more voluntary and unilateral opening-up policies, expanded a globally oriented network of high-standard free trade zones, and maintained its position as the world's second-largest import market for many consecutive years. The scale of China's goods imports reached $2.6 trillion in 2024, as its large market continued to offer new opportunities for international openness and cooperation.

At the same time, we must acknowledge that our country remains the world's largest developing country. A significant gap persists in per capita GDP compared with developed nations, while imbalances and inadequacies in development continue to be prominent issues. Achieving the long-range objectives through 2035 will require tremendous effort. We must fully and faithfully apply the new development philosophy in all areas and accelerate the creation of a new development pattern. We must always remember that high-quality development is an unwavering principle in the new era, work diligently and steadily advance toward the goal of Chinese modernization.

Thank you.

Red Star News:

In the past year, the central and local governments have introduced a series of measures to stabilize the housing market. What effects have these combined efforts had on halting and stabilizing the decline of the real estate market? How would you evaluate the outlook for the real estate market? Thank you.

Kang Yi:

Thanks for your questions. Real estate is a topic of significant public interest because it is closely linked to both economic development and improvements in people's livelihoods. In 2024, in response to the complex situation in the real estate market, the meeting of the Political Bureau of the CPC Central Committee on Sept. 26 stated that "efforts will be made to stabilize the property market and reverse its downturn." Multiple departments swiftly refined policies related to land, finance, taxation and banking. They removed restrictions on home purchases, sales and pricing, as well as the standards distinguishing ordinary from non-ordinary housing. They also lowered interest rates for housing provident fund loans, down payment requirements, existing loan rates and tax rates for home replacement purchases, collectively delivering a comprehensive policy package. Each locality has also implemented tailored policies based on its specific circumstances. The effectiveness of these policies is gradually becoming evident in several aspects.

First, market transactions have become more active. The continuous rollout of the policy package has effectively lowered the threshold for residents to purchase homes, alleviated the pressure of mortgage repayments, increased residents' willingness to buy homes, and led to an improvement in real estate sales. In the fourth quarter, both the sales area and value of newly built commercial residential properties experienced positive growth. According to sales data from 40 key monitored cities, the sales area and sales value of newly built commercial housing in December increased by 0.3% and 4.1% year on year, respectively.

Second, property prices have gradually stabilized. With the continued release of demand for first homes and improved housing supply, the supply-demand relationship has improved, leading to stabilized housing prices. In December, among 70 large- and medium-sized cities, the sales prices of newly built commercial residential properties increased month on month in 23 cities, while the prices of second-hand residential properties rose month on month in nine cities. In particular, the sales prices of newly built commercial residential properties in first-tier cities increased by 0.2% month on month, marking the first increase since June 2023. Meanwhile, the sales prices of second-hand residential properties rose by 0.3% month on month, experiencing an increase for three consecutive months. The sales prices of newly built commercial residential properties in second-tier cities shifted from a decline last month to remaining flat month on month. The month-on-month decline in the sales prices of newly built commercial residential properties in third-tier cities has continued to narrow for four consecutive months. Year-on-year declines in commercial housing prices have narrowed across cities of all tiers.

Third, market expectations have continued to improve. Thanks to the combined effects of the policies, key indicators of the real estate market are consistently improving, gradually boosting market confidence. In December, a monthly housing price survey conducted in 70 large- and medium-sized cities showed that 69.3% of surveyed industry professionals expected prices of newly built commercial housing to remain stable or increase in the next six months, up 0.8 percentage points from the previous month.

Fourth, there has also been an improvement in sectors related to real estate. The recovery of the real estate market has led to improvements in related industries. In December, the business expectation index for the construction sector increased by 1.5 percentage points compared to the previous month, marking the third consecutive month of growth. As sales of commercial housing improve, the demand for decoration and renovation is gradually increasing, leading to an uptick in the sales of furniture and building materials. In December, retail sales of furniture by enterprises above designated size rose 8.8% year on year, marking four consecutive months of growth. Building and decoration material sales increased 0.8%, posting two straight months of growth.

Overall, in recent times, the real estate market has seen an increase in positive changes due to the effects of the policy package, and market confidence is gradually being strengthened. With the effective implementation of both existing and incremental policies, the real estate market is expected to continue improving in the next phase. In the medium to long term, China's urbanization process remains incomplete, with continued potential for first-home purchases and housing improvements. Demand for safer, more comfortable, greener and smarter homes will continue to grow as new development models for the real estate market gradually take shape. This will support the real estate market's stable and healthy development.

Thank you.

Market News International:

China's CPI rose 0.2% in 2024, according to newly released data. We also noticed that December's core CPI rose slightly to 0.4%, the highest level in five months. How does the NBS view last year's inflation performance? What's your outlook for inflation in 2025, and what measures will be taken to ensure inflation meets official targets? Thank you.

Kang Yi:

These questions are about prices. Let's invite Mr. Fu to answer.

Fu Linghui:

Thank you for your questions. Pricing is indeed an issue that draws widespread attention. In 2024, the CPI showed a slight upward trend, rising 0.2% for the year, matching the growth rate of 2023. From a monthly perspective, the CPI showed slight year-on-year increases in all months except January, which saw a slight decline. When analyzing the CPI trend, it is important to examine overall data, structural changes and dynamic trends.

First, the overall CPI trend in 2024 showed structural characteristics. In 2024, CPI growth was significantly influenced by falling food and energy prices, while core CPI - excluding food and energy — remained generally stable. From a food price perspective, some regions experienced severe disruptions from extreme weather last year. However, the overall supply of foods — including grains, oils, meat, eggs and vegetables — remained sufficient, with prices staying stable and showing slight declines. In 2024, food prices decreased by 0.6% year on year, contributing to a 0.11 percentage point drop in the CPI. Edible oil, beef, mutton, eggs and fresh fruit saw price decreases ranging from 3.5% to 11.6%. In terms of energy prices, weak global economic growth last year drove international commodity prices lower, particularly crude oil, despite monthly fluctuations. This led to declining domestic energy prices. China's CPI energy component decreased 0.1% in 2024 year on year, as gasoline prices fell 0.7% and diesel 0.8%. Core CPI, a better indicator of the supply-demand relationship, stayed stable with a 0.5% year-on-year rise in 2024, while service prices grew 0.7%. Notably, starting in the fourth quarter, driven by the rebound in consumer demand, the year-on-year growth rate of core CPI has been rising month after month, experiencing small but continuous increases for three months.

Second, there's a growing number of factors that could lead to moderate CPI increases. With the synergistic effect of existing policies and a package of incremental policies, the momentum of economic recovery is strengthening, the recovery of consumer demand is accelerating, and favorable factors for a moderate price rebound are increasing. In the near term, food consumption demand is rising ahead of the Spring Festival holiday. Service consumption — including dining out, family visits and travel — is also increasing, contributing to an expected seasonal rise in the CPI. Based on preliminary January data, prices have risen steadily for vegetables, fresh fruit, airline tickets, tourism and other goods and services. The CPI is expected to show a larger year-on-year increase in January. At the same time, rising business and consumer confidence is providing additional support for a moderate increase in the CPI. In December, the expectation index for manufacturing production and business activities was 53.3%, and the business expectation index for the service sector was 57.6%. Both figures were above the threshold. The consumer confidence index rose 0.2 percentage point compared to the previous month.

The Central Economic Work Conference identified vigorously boosting consumption, improving investment efficiency, and comprehensively expanding domestic demand as the top priorities for economic work in 2025. It also, for the first time, established maintaining stable growth, stable employment and reasonable price rebounds as essential goals. With the intensified implementation of macro policies, it is expected to create a better policy support for economic growth and a reasonable rise in prices. Consequently, the CPI is expected to see a moderate rebound in 2025.

Thank you.

Dazhong Daily:

Over the past year, the central government placed great emphasis on cultivating new quality productive forces. As regions and departments have implemented various measures, what tangible results do the data show in terms of new quality productive forces driving high-quality economic development? Thank you.

Kang Yi:

Thank you for your question. Developing new quality productive forces is both an essential requirement and a key focus for promoting high-quality development. In 2024, various parties actively promoted the deep integration of technological and industrial innovation. The effort advanced industries' high-end, intelligent and green development while facilitating the transformation of technological creativity into social productivity. China's new quality productive forces have been developing steadily, injecting continuous momentum into high-quality development. Specifically, this was evident in several areas:

First, innovation capacity was further strengthened. We rapidly improved the fundamental systems and institutions supporting comprehensive innovation. We also continuously advanced the construction of major science and technology infrastructure. New progress was achieved in integrated circuits, artificial intelligence, quantum communications, aerospace and other fields. The Chang'e 6 probe achieved a historic first by collecting samples from the far side of the moon. The Meng Xiang, China's first domestically designed and built deep-ocean drilling vessel, explored the deep ocean. These achievements represent China's latest technological milestones. China's Global Innovation Index ranking for 2024 rose to 11th place, making it one of the fastest-improving economies in innovation over the past decade. Research and development investment continued to climb, with R&D intensity reaching 2.68% in 2024, an increase of 0.1 percentage point from the previous year. Basic research funding grew even faster, rising 10.5% and accounting for 6.91% of total R&D spending.

Second, emerging industries saw further expansion. Emerging industries, such as high-end equipment and AI, showed positive development trends, and new pillars of the industrial system gradually took shape. In 2024, the value added of high-tech manufacturing above designated size grew by 8.9% compared to the previous year. Notably, both aerospace equipment manufacturing and electronic and communication equipment manufacturing saw double-digit growth in value added. The continuous emergence of new market demand spurred the production of more high-quality goods. In 2024, high-end manufacturing industries saw significant growth, with the value added by smart consumer device production increasing by 10.9% year on year. Notably, the value added of smart vehicle equipment manufacturing and smart unmanned aerial vehicle manufacturing industries increased by 25.1% and 53.5%, respectively.

Third, traditional industries were further upgraded. China has been accelerating the advancement of technological transformation and equipment renewal in the industrial sector, continuously promoting the revitalization of traditional industries. In 2024, investment in technological upgrades in the manufacturing sector increased by 8% year on year, significantly faster than the growth rate of overall investment. As key areas for the optimization and upgrading of traditional industries, the raw materials industry and the level of process technology and equipment steadily improved, and the green digital transformation accelerated. In 2024, the energy consumption per unit of value added decreased year on year in major energy-consuming industries above designated size. These industries included chemicals, building materials, steel and non-ferrous metals. By the end of 2024, the numerical control rate of key processes in these raw material industries exceeded 75%, achieving the target set by the 14th Five-Year Plan ahead of schedule.

Fourth, the digital economy experienced further growth. The continuous development of digital technology, infrastructure, and resources, coupled with the digital economy's empowerment of various industries, has become a key driver and support for developing new quality productive forces. In 2024, the value added of digital product manufacturing above designated size grew significantly faster than that of industrial enterprises above designated size. The value added of the information transmission, software and information technology services industries increased by 10.9% compared to the previous year. New digital consumption models and scenarios continued to expand, driving a 6.5% increase in online retail sales of physical goods. The construction of network infrastructure, such as 5G and gigabit optical networks, steadily advanced. By the end of November 2024, China had 4.19 million 5G base stations. The first "Eastern Data and Western Computing" 400G all-optical interprovincial backbone network officially began commercial operation, creating a high-speed computing power channel.

Fifth, green development made further achievements. China continued to advance its transition to a green, low-carbon economy, achieving significant progress in new energy development. The country has established a complete, internationally competitive new energy industrial chain. The energy sector is rapidly transitioning to green energy, with clean energy sources accounting for an increasing share of power generation. In 2024, hydropower, nuclear, wind, and solar power generation in China's industrial enterprises above designated size reached 32.6% – nearly a third of the total.

In addition, China continued actively investing in future industries in 2024, with quantum technology and the low-altitude economy rapidly moving towards realization. Origin Wukong, China's independently developed third-generation superconducting quantum computer, was put into operation. The market size for humanoid robots also continued to expand, with various sectors accelerating their efforts to seize new economic development opportunities. New quality productive forces are continuously empowering high-quality development.

Thank you.

Reuters:

Could you share your outlook for China's economic development in 2025? With potential export headwinds this year, how can domestic demand, particularly consumption, be stimulated? Also, I'm interested in the analysis of potential growth rate — what's the current approximate level, and what are the trends going forward? Thank you.

Kang Yi:

Let me first address your question about the potential growth rate. The potential growth rate is a research concept that reflects economic growth capacity. Different scholars reach varying estimates based on their methods and assumptions. The consensus from recent studies by various organizations and scholars indicates that China's current potential economic growth rate remains at a medium-to-high level. Different institutions and scholars use varying methods and parameter settings, resulting in inconsistent estimates. Overall, the Chinese economy maintains a medium-high potential growth rate.

Now, let me address the outlook for 2025. China's 14th Five-Year Plan concludes in 2025. While adverse effects from external environment changes may intensify, the Chinese economy maintains stable foundations, multiple advantages, strong resilience and significant potential. The fundamental conditions and trends supporting long-term growth remain unchanged, as does the momentum for high-quality economic development. Favorable conditions continue to outweigh unfavorable factors, with timing and momentum remaining advantageous for development. We remain confident about China's economic development in 2025. This confidence is derived from the following factors:

First, there is a solid foundation for sustained economic improvement, with positive factors for economic development continuing to accumulate. In 2024, the journey of economic development was extraordinary. The economy showed a significant rebound in the fourth quarter, with market vitality and expectations steadily improving. Positive factors driving sustained economic improvement continued to accumulate, laying a solid foundation for economic growth in 2025. China is a super-large economy with substantial economic scale and market capacity. It possesses a complete industrial system and strong support capabilities. Both supply and demand can sustain the domestic economic cycle, providing fundamental support for steady, long-term development. For example, let's look at some production metrics. In 2024, more than 80,000 vehicles and 3.4 million smartphones were produced daily, with over 470 million packages delivered each day. Such figures clearly demonstrate the vibrant vitality of China's market.

Second, momentum exists for sustained economic improvement, as new growth drivers and advantages continue to strengthen. China is currently in a critical period of transitioning from old to new growth drivers. Some traditional drivers, such as real estate, are weakening, and their share of the national economy is declining. However, emerging growth drivers, particularly the digital economy, are showing robust growth. Their share continues to increase, creating new opportunities and expanding possibilities for China's development. In 2024, the real estate sector's value-added contribution to GDP was 6.3%, down 0.5 percentage points from 2023. Data for China's digital economy in 2024 has not yet been released. In 2023, the digital economy's value-added contribution reached 31.8% of GDP, up 1.3 percentage points from 2022. Of this, the share of core digital industries in GDP rose to 9.9%, a 0.5 percentage points gain from 2022. The digital economy's share will continue to grow in 2024, having already become a new engine driving China's economic development.

Third, sustained economic growth remains well-supported, as the effects of policy packages continue to strengthen. In particular, the Central Economic Work Conference diagnosed and prescribed solutions for current major issues, setting a clear direction for economic work in 2025. The policy orientation is explicit: to promote sustained economic recovery and growth while continuously raising people's living standards. In response to the complex changes in the external environment and insufficient effective domestic demand, the top priority for 2025's economic work is expanding domestic demand broadly, particularly consumer spending. This brings us to the reporter's question about boosting consumption. The Central Economic Work Conference clearly proposed special initiatives to boost consumption, strengthen the implementation of policies for large-scale equipment renewal and consumer goods trade-ins, and increase support for projects involving national strategic priorities and key security capabilities. The implementation of these policies will effectively unlock domestic demand potential, particularly consumer spending, providing stronger momentum for steady economic growth this year.

Fourth, the momentum for continued economic improvement remains strong, with deepening reform and opening up set to enhance development vitality. Reform and opening up is the source of vitality for China's contemporary development and progress, and a crucial key to keeping pace with the times. The third plenary session of the 20th CPC Central Committee proposed more than 300 reform measures. The Central Economic Work Conference explicitly called for resolutely advancing reform and expanding opening up to address deep-seated obstacles and external challenges that constrain development. The implementation of these reform measures will further liberate and develop productive forces, and stimulate and enhance economic vitality.

It is also important to note that 2025 is the final year for completing the 14th Five-Year Plan. As all sectors aim for their targets and focus on implementation, major strategic tasks and significant engineering projects will be fully realized, generating stronger momentum for economic development. China has rich experience in macroeconomic regulation, Chinese enterprises are daring and enterprising, and Chinese people are hardworking and intelligent. These factors enable us to respond to risks and challenges with greater confidence as we promote high-quality development. Next, through reforms and policies, we must fully unleash development potential, achieve high-quality completion of the 14th Five-Year Plan's goals, and lay a solid foundation for the 15th Five-Year Plan.

Thank you.

CNBC:

What changes have you observed in employment, particularly concerning young people's employment? Thank you.

Kang Yi:

Mr. Fu will address your question about employment.

Fu Linghui:

Employment remains a key public concern, serving as both a cornerstone of well-being and source of wealth. The CPC Central Committee continues to make employment stability and growth its top priority in economic and social development. Despite many economic challenges in 2024 and difficulties for some businesses, the national economy remained generally stable and made steady progress. As the economy expanded and the service industry maintained its large employment capacity, new business forms, models, and industries created more jobs, playing an important role in employment stability. Employment-first policies continued to show results, contributing to overall employment stability in 2024.

The national surveyed urban unemployment rate showed a steady decline in 2024, averaging 5.1% — down 0.1 percentage point from 2023. The national surveyed urban unemployment rate remained stable throughout 2024, registering 5.2%, 5.0%, 5.2% and 5.0% across the four quarters. The 2024 average surveyed urban unemployment rate of 5.1% was relatively low for recent years, indicating overall employment stability.

Employment among key population groups has improved. Overall employment situations have improved for migrant workers, young people, and individuals facing difficulties in securing employment. The average surveyed urban unemployment rate for rural migrant workers was 4.6% in 2024, down 0.3 percentage points from 2023. The number of migrant workers rose by 2.2 million in 2024, a 0.7% increase from 2023. As the graduation season ended in August, employment pressure on young people began to ease. The surveyed urban unemployment rate for the 16-to-24 age group, excluding students, fell 0.4 percentage points in December from November, marking the fourth consecutive monthly decline. Regarding people with employment difficulties, by the end of 2024, more than 33 million people who had been lifted out of poverty found jobs nationwide, surpassing the annual target and exceeding 30 million for the fourth consecutive year.

Over the past year, the economy indeed faced various difficulties. However, employment remained stable mainly because China's expanding GDP requires corresponding employment growth. At the same time, the service industry maintains high employment capacity and has played a crucial role in employment stability in recent years. The service industry's share of China's GDP rose to 56.7% in 2024, up 0.4 percentage points from 2023. Based on average annual employment figures, the service industry added more than 7 million workers in 2024 compared with 2023. Of this, employment rose significantly in wholesale and retail, accommodation and catering, information transmission, leasing and business services. In addition to overall economic expansion and growing service industry employment capacity, continued employment-first policies have played an important role in stabilizing employment. Last year, the CPC Central Committee and the State Council issued the Opinions on Implementing the Employment-First Strategy to Promote High-Quality and Full Employment. Various regions have implemented initiatives to promote employment through advanced manufacturing, providing important guarantees for employment stability.

It is indeed necessary to recognize that the Chinese economy is facing some challenges at present. Structural employment problems are prominent, and certain groups, such as young people, experience difficulties and pressure in finding jobs. Stabilizing employment still requires effort. The Central Economic Work Conference addressed this by highlighting the need to balance stable growth, stable employment and a reasonable recovery in prices. In the next stage, to achieve this goal, we need to place greater emphasis on promoting high-quality, full employment. We must effectively implement employment support plans for key areas, key industries, urban and rural communities, and small- and medium-sized enterprises while promoting employment for key groups to ensure overall employment stability.

Thank you.

Cover News:

My questions are about consumption. The Central Economic Work Conference emphasized the need to boost consumption substantially. What was China's overall consumption performance in 2024? What's your take on the current sluggishness in the consumer market? Will consumer market conditions improve in 2025? Thank you.

Kang Yi:

Thank you for your question. Consumer spending is indeed a widely shared concern. In 2024, regions and departments across China strengthened policies to expand domestic demand and boost consumption while stabilizing household spending. Since the fourth quarter, expanded trade-in programs for consumer goods have shown sustained positive results, leading to a clear rebound in market sales and supporting overall economic recovery. Specifically, there were several key characteristics:

First, the market size continued to expand. In 2024, total retail sales of consumer goods reached 48.8 trillion yuan, a 3.5% increase from the previous year, maintaining a leading global position. Specifically, the fourth quarter saw a 3.8% year-on-year increase, 1.1 percentage points higher than the third quarter. In terms of its contribution to economic growth, final consumption expenditure drove economic growth by 2.2 percentage points for the year. In the fourth quarter, it contributed 1.6 percentage points, up 0.2 percentage point from the third quarter.

Second, trade-in programs had a significant impact. In 2024, the central government allocated 150 billion yuan in special ultra-long treasury bonds to local governments to support consumer goods trade-in programs tailored to local conditions. Retail sales of household appliances and audiovisual equipment by units above designated size increased by 12.3% year on year, accelerating by 11.8 percentage points. Furniture sales grew by 3.6% annually, accelerating by 0.8 percentage point. Since the second half of last year, policies promoting trade-ins of consumer goods have been strengthened, leading to faster sales growth of appliances, automobiles and other goods in recent months, and significantly boosting overall consumption recovery.

Third, service consumption played a prominent role as a new driving force. The trend toward personalized, diversified and quality-oriented consumer spending was evident, with consumption patterns shifting from primarily goods to a balance between goods and services. Service consumption is also increasingly becoming a key area for optimizing and upgrading the consumption structure. In 2024, the proportion of per capita service consumption expenditure to overall per capita consumption expenditure increased by 0.9 percentage point compared to the previous year. Service retail sales grew by 6.2%, outpacing the growth rate of commodity sales. Demand for cultural tourism remained strong, information consumption boomed, and retail sales for transportation, communication and information services all maintained double-digit growth.

Fourth, new types of consumption showed potential. Online sales, instant retail and other new consumption models continued to gain momentum. In 2024, online retail sales of physical goods rose 6.5% from the previous year, driving express delivery volume to a record high. At the same time, domestically produced goods, "China Chic" products and traditional Chinese-style items gained widespread popularity. New business models such as digital cultural tourism, livestream e-commerce and online fitness services continued to emerge. Smart homes, smart wearables and other new scenarios continued to expand, demonstrating rapid growth potential. In particular, retail sales of energy-efficient and smart home appliances sustained double-digit growth rates.

Of course, we must also recognize that consumers' purchasing power and willingness to spend remain insufficient, and consumption demand indeed needs further boosting. Looking to the future, various favorable conditions are in place to sustain consumption growth. First, policies to promote consumption will continue to be strengthened. The Central Economic Work Conference further proposed a comprehensive expansion of domestic demand, which will unleash more policy effects. Second, the overall employment situation remains stable, laying a foundation for increased household income. We will intensify efforts to boost income and reduce burdens among low- and middle-income groups, helping to strengthen household spending capacity. Third, new consumption scenarios and business formats show continued expansion. Recently, many regions have seized on the "ice and snow fever" trend to promote related spending. At the same time, new growth points, such as the debut economy and silver tourism, are gradually taking shape, which will help boost consumption development. Fourth, China continues to demonstrate the advantages of its ultra-large market. The nation's population of more than 1.4 billion and increasing urbanization rates indicate massive consumption potential, providing strong support for steady consumption growth.

Next, we need to fully implement the decisions and plans of the Central Economic Work Conference and carry out special actions to boost consumption. This includes promoting income growth and reducing burdens for low- and middle-income groups. We will also work on improving consumer spending power, willingness to spend and consumption levels, while creating diverse consumption scenarios and expanding consumption of services.

Thank you.

Shou Xiaoli:

Thank you to Mr. Kang Yi and Mr. Fu Linghui, and thanks to all our media friends. Today's press conference ends here. Goodbye.

Translated and edited by Liu Caiyi, Xu Xiaoxuan, Yang Chuanli, Zhang Jiaqi, Liu Jianing, Xu Kailin, Liu Sitong, Wang Yiming, Yuan Fang, Mi Xingang, Fan Junmei, Li Huiru, Huang Shan, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Ms. Li Yongjie, deputy China international trade representative

Mr. Li Gang, director general of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce (MOFCOM)

Mr. Meng Yue, deputy director general of the Department of Foreign Trade 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:

Jan. 15, 2025

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 "High-Quality Development Achievements of China's Economy." Today, we have invited Ms. Li Yongjie, deputy China international trade representative, to brief you on the situation of commerce work serving high-quality development and answer your questions. Also attending today's press conference are: Mr. Li Gang, director general of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce (MOFCOM); and Mr. Meng Yue, deputy director general of the Department of Foreign Trade of MOFCOM.

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

Li Yongjie:

Thank you. Good afternoon. First, thank you very much for your interest in and support for our commerce work. I am very pleased that my colleagues and I have the opportunity to meet with you today to discuss the development of our commerce work. Let me start by first discussing a few points.

In the recently concluded year of 2024, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, MOFCOM resolutely implemented the decisions and deployments of the Party Central Committee and the State Council, promoting high-quality development of commerce. Throughout the year, the overall operation of commerce remained stable and made steady progress, making a positive contribution to the recovery and improvement of the economy. Our achievements this year are mainly reflected in the following aspects:

First, domestic consumption grew steadily. Total retail sales of consumer goods in the first 11 months reached 44.3 trillion yuan, an increase of 3.5%. In terms of product consumption, well-known policies such as trade-in programs have driven sales of automobiles, home appliances, home renovations, and kitchen and bathroom products to exceed 1.3 trillion yuan. Among them, green and smart products are highly favored, especially new energy vehicles, first-class energy-efficient home appliances, smart home products, and so on. In terms of services, with the continuous emergence of new scenarios and new norms in consumption of services, the potential of consumption of services has been constantly released. In the first 11 months, retail sales of consumption of services increased by 6.4%, with information and entertainment consumption being particularly active.

Second, foreign trade reached a new high. The total value of imports and exports for the year was 43.8 trillion yuan, an increase of 5%, reaching a record high. Exports and imports grew by 7.1% and 2.3%, respectively. In the first 11 months, service imports and exports reached 6.7 trillion yuan, an increase of 14.2%. Total service imports and exports for the year are also expected to reach a record high. For example, with the active promotion of visa policies, the popularity of tourism to China continues to rise. According to statistics, travel service exports have increased by 1.5 times.

Third, the structure of investment attraction continued to improve. In the first 11 months, 52,000 new foreign-funded enterprises were established, attracting 749.7 billion yuan in foreign investment. We are continuously relaxing market access, with entry restrictions in the manufacturing sector fully lifted. High-tech manufacturing investment accounts for 11%. Pilot programs to open up service sectors such as telecommunications and health care are also being actively promoted, with many projects already in the negotiation and implementation stages.

Fourth, foreign investment and cooperation steadily progressed. In the first 11 months, non-financial outbound direct investment reached 915.2 billion yuan, an increase of 12.4%. The value of newly signed contracts for overseas contracted projects reached 1.4 trillion yuan, an increase of 13%. High-quality economic and trade cooperation under the Belt and Road Initiative (BRI) has been steadily advancing, with notable highlights emerging in areas such as green, digital and blue economy collaboration.

Fifth, fruitful achievements have been made in multilateral and bilateral economic and trade cooperation. In terms of multilateral efforts, we promoted the WTO's 13th Ministerial Conference to achieve practical results of "1+10." In 2024, we also reached agreements on investment and trade facilitation and e-commerce. Additionally, mechanisms such as the G20, BRICS, APEC and SCO also reached multiple economic and trade consensuses. In 2024, we continued to expand our "circle of friends" of free trade partners. Now, the trade proportion with free trade partners has exceeded one-third. For example, last year we substantially concluded the Version 3.0 China-ASEAN Free Trade Area (FTA) negotiations, signed a protocol to upgrade the bilateral free trade agreement with Peru, and promoted the implementation of free trade agreements or upgrade agreements with countries such as Serbia, the Maldives and Singapore. We also signed framework agreements on economic partnership for shared development with 23 African countries.

The period covered by the 14th Five-Year Plan will come to an end in 2025. We will thoroughly implement the deployments of the Central Economic Work Conference, focusing on stabilizing foreign trade and foreign investment, expanding consumption and high-level opening up to the outside world. With the real results of high-quality business development, we will make new contributions to the continuous recovery and improvement of the economy.

That is all for my introduction. My colleagues and I are now willing to answer your questions. Thank you.

Xing Huina:

The floor is now open for questions. Please identify your news outlet before asking your question.

China Daily:

The third plenary session of the 20th CPC Central Committee proposed improving systems for people from overseas in terms of residency, medical care and payment. What steps will you take next to implement the third plenary session's plans to further open up and attract foreign investment? Thank you.

Li Yongjie:

Thank you for your question. I will take this one. As you mentioned earlier, the third plenary session of the 20th CPC Central Committee proposed improving the systems for people from overseas in terms of residency, medical care and payment. As you can see, we have taken many measures in this regard in 2024, such as the continuous optimization of the entry-exit policies. At present, we have launched mutual visa-free policies with 25 countries and unilateral visa-free policies with 38 countries. These policies have made it more convenient for foreign investors attending conferences and exhibitions, conducting project negotiations and engaging in technical exchanges in China. In terms of foreign investment work in 2025, we will follow the decisions and deployments of the CPC Central Committee and the State Council to effectively reduce the negative list and improve the business environment while steadily expanding institutional opening up. I will also briefly introduce our plans.

First, we will further promote independent opening up and continuously expand market access. I mentioned earlier that we promoted the removal of restrictions on foreign investment access in the manufacturing sector in 2024. We also rolled out pilot programs for opening up the service sector, particularly in value-added telecommunications, biotechnology and wholly foreign-owned hospitals. Meanwhile, we have also introduced a negative list for cross-border service trade in pilot free trade zones (FTZ). The list proactively expands opening up in areas of professional qualifications, finance, professional services and culture. We believe this effort will further facilitate foreign individuals coming to China to provide services. Next, we will steadily promote the opening up of the service sector in accordance with the deployments of the Central Economic Work Conference, especially to expand pilot programs for opening up in areas of telecommunications, health care and education. Furthermore, we will revise the Catalog of Encouraged Industries for Foreign Investment to make our policies more attractive. This is what I mean by reducing the negative list through independent opening up.

Second, we will continue to make China a favored destination for foreign investment, creating and improving a world-class business environment. We will mainly carry out the work from the following two aspects. In 2024, we held 28 Invest in China roadshows at home and abroad to expand its influence. Next, we will continue holding events as part of the Invest in China series this year, expanding investment channels, enhancing the effectiveness of the exhibitions in attracting foreign investment, and supporting the investment promotion production factors to further burnish the credentials of "Invest in China." On the other hand, we have been deepening regular communication with foreign-invested enterprises. For example, we held 15 roundtable meetings with foreign-invested enterprises and coordinated to resolve over 300 issues faced by these enterprises in 2024. This year, we will further strengthen services and support for foreign-invested enterprises, making good use of the foreign-invested enterprise roundtables and other platforms to coordinate issues faced by foreign-invested enterprises in areas like qualification permits, standard setting and government procurement.

Third, we will proactively align with high-standard international economic and trade rules and build high-level opening up platforms. We will fully leverage the pioneering role of our opening up platforms. For example, we implemented an enhancement strategy last year in pilot FTZs. We have replicated and promoted the results of the first batch of institutional opening up, and introduced policies targeting different FTZs, such as the approved plan to build the China (Zhejiang) Pilot Free Trade Zone into a major commodity resource allocation hub. A symposium was held to mark the 40th anniversary of the national economic and technological development zones, which aims to guide these zones to enhance their openness and effectiveness. This year, we will continue to follow the requirements of the Central Economic Work Conference, expanding opening-up and attracting foreign investment by building high-level platforms. We will continue to promote the improvement and efficiency of pilot FTZs, implement the enhancement strategies, and expand the authorization of reform tasks according to local conditions. Pilot experiences of FTZs in Shanghai will be promoted and replicated to support each FTZ in aligning with international high-standard economic and trade rules, and expanding opening up testing. We will also improve policies for national economic and technological development zones and promote the construction of comprehensive pilot demonstrations for the expansion of China's service industry. In summary, through these opening up platforms, the level of institutional opening up will be further enhanced, and more foreign investment will be attracted. Thank you.

CNR:

In 2024, the scale of China's imports and exports exceeded 43 trillion yuan, setting a new record. How does MOFCOM evaluate the overall performance of foreign trade last year? And what other highlights are worth our attention? Thank you.

Li Yongjie:

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

Meng Yue:

Thank you for your questions. In 2024, facing a complicated and challenging international environment, under the strong leadership of the CPC Central Committee and the State Council, and with the joint efforts of various localities, departments, and foreign trade enterprises, China's foreign trade faced up to the pressure and rose to the challenges. China's trade in goods reached new heights, its development quality steadily improved, and its contribution to global economic and trade development continued. There were three major highlights:

First, growth has become more stable. Trade volume reached new heights. In 2024, China's total trade in goods reached 43.85 trillion yuan, up 5% year on year, demonstrating strong resilience. Additionally, we actively expanded imports to share development opportunities. China's imports grew by 2.3% in 2024, reaching historic highs and maintaining its position as the world's second-largest importing country for 16 consecutive years. China has hosted seven sessions of the China International Import Expo (CIIE), providing a platform for high-quality global products to enter the Chinese market

Second, innovation vitality has become more abundant. For instance, the number of entities has continued to increase. In 2024, nearly 700,000 enterprises engaged in import and export trade. Moreover, China's foreign trade structure has been optimized. Chinese companies have placed greater emphasis on increasing the added value of their products. Mechanical and electrical products accounted for 59.4% of exports, while automobile exports exceeded 6 million units for the first time. Exports of energy storage products, smart home devices and other green, low-carbon, smart and digital products have grown rapidly. Meanwhile, traditional strengths like textiles and clothing have increasingly moved toward brand-driven, technology-enabled development. Additionally, new business models have continued to emerge. In 2024, China's cross-border e-commerce trade grew by 10.8%, with its share of total foreign trade rising to 6%, enabling more quality products to reach overseas consumers directly. Bonded maintenance has already been implemented in 270 projects, creating more opportunities for enterprise development.

Third, we've achieved a more open development structure. Our trading partners have become more diversified. China's trade with traditional markets has continued to grow, while trade with Belt and Road partner countries has increased to 50.3% of total foreign trade. China has become a major trading partner for more than 150 countries and regions, serving as a solid and reliable part of the global division of labor. Moreover, we have expanded our network of high-standard free trade agreements worldwide. China has signed free trade agreements with 30 countries and regions across five continents, bringing the total to 23 agreements. We have also made due contributions to global economic and trade development. According to the World Trade Organization, China's imports accounted for 20.3% of global import growth in the first three quarters, significantly boosting global economic recovery.

Overall, China's foreign trade performance in 2024 was encouraging, further demonstrating that openness and cooperation for mutual benefit remain key drivers of dynamic international trade. China will continue to expand high-level opening up, injecting greater stability into global economic growth. Thank you.

21st Century Business Herald:

The annual Central Economic Work Conference proposed vigorously boosting consumption and comprehensively expanding domestic demand. What positive progress was made in consumer goods trade-in programs in 2024? What other initiatives is MOFCOM considering to boost consumption in 2025? Thank you.

Li Yongjie:

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

Li Gang:

Thank you for your questions. Consumption is a key engine of economic growth, a crucial link in smoothing domestic circulation, and a direct reflection of people's needs for a better life. In 2024, MOFCOM faithfully implemented the decisions and plans of the CPC Central Committee and the State Council by advancing consumer goods trade-in programs, promoting high-quality development of service consumption, and launching "Consumption Promotion Year" activities to expand consumption. In the first 11 months, total retail sales of consumer goods reached 44.3 trillion yuan, up 3.5% from a year earlier. In particular, consumer goods trade-in programs have achieved positive results. According to preliminary statistics, more than 6.8 million cars were traded in nationwide in 2024. Through trade-in programs, over 36 million consumers purchased more than 56 million home appliances across eight categories. Additionally, approximately 60 million subsidized housing renovations and kitchen and bathroom products were sold, and more than 1.38 million electric bicycles were traded in for new ones. Sales of related products driven by consumer goods trade-in programs exceeded 1.3 trillion yuan. Trade-in programs have generated new consumption momentum, promoted green recycling and enhanced quality of life.

The Central Economic Work Conference emphasized the need to strongly boost consumption and expand domestic demand across all sectors. The Ministry of Commerce will earnestly implement and advance targeted initiatives to boost consumption and unlock consumer potential. We will focus on five key areas.

First, we will strengthen efforts to expand the consumer goods trade-in program to build a stable foundation for consumption. Recently, the central government earmarked an initial 81 billion yuan for the consumer goods trade-in program in 2025. This week, we will release implementation guidelines for the 2025 trade-in program, covering automobiles, home appliances, furniture, and electric bicycles, as well as subsidies for the purchase of mobile phones and other digital products. Next, we will streamline policy implementation procedures and enhance policy interpretation to help consumers better understand and access these benefits.

Second, we will expand consumption of consumer services and optimize the overall consumption structure. In 2024, the State Council unveiled a guideline on advancing the high-quality development of service consumption, with the Ministry of Commerce taking the lead in building a "1+N" policy framework for service consumption. Next, we will implement a comprehensive set of policies and launch initiatives to enhance service quality for public benefit. In collaboration with relevant departments, we will strengthen support policies in key sectors and organize promotional events such as the Service Consumption Season and Chinese Cuisine Festival. We will also promote the orderly opening up of sectors like telecommunications, education and health care. These efforts aim to enrich service offerings and better meet the public's growing demand for services.

Third, we will develop innovative consumption promotion activities to create a consumer-friendly environment. Together with local governments, we will organize diverse consumer promotion activities that appeal to the public, focusing on key time periods and product categories while integrating online and offline channels. Recently, we launched events, including a time-honored brands carnival and an online New Year goods festival to meet public demand during the New Year and Spring Festival shopping season. After the holiday, we will host additional promotions, including a consumption promotion month. We welcome everyone to stay tuned.

Fourth, we will foster and develop new forms of consumption to bring out greater vitality. We will guide local authorities to develop debut economy suited to their local conditions, actively promote digital, green and health-related consumption, create diverse consumption scenarios, and cultivate new growth drivers in consumer spending.

Fifth, we will enhance consumption conditions and optimize the consumption environment. We will accelerate the development of international consumption center cities and create a more welcoming international consumer environment. We will promote the renovation of pedestrian streets and commercial district facilities, modernize business operations, enhance services for elderly and child care, and develop 15-minute community life circles. We will intensify the implementation of the three-year action plan aimed at strengthening the nation's county-level commerce system, advance the renovation and upgrading of "thousands of markets and tens of thousands of stores," and continuously facilitate consumption for urban and rural residents. We will also advance the development of a unified national market and create a favorable consumption environment. Thank you.

Cover News:

Against a backdrop of increasing external risks and challenges, how should we view the foreign trade outlook for 2025? What measures will the Ministry of Commerce implement to promote the stable development of foreign trade? Thank you.

Li Yongjie:

Thank you for your questions. I would like to invite my colleague Mr. Meng to address these questions.

Meng Yue:

Thank you for your questions. Currently, global economic growth momentum is clearly insufficient. Unilateralism and protectionism are rising, global trade barriers are multiplying, geopolitical impacts are intensifying. Both security of global industrial and supply chains and the global trade order face significant challenges. This external environment poses challenges for both China and other economies worldwide.

However, we should also note that many favorable conditions remain for foreign trade development in 2025. First, global trade and economic recovery continue, with the World Trade Organization projecting a 3% increase in global merchandise trade volume this year. Second, China's economy maintains a steady recovery, with macroeconomic policies showing cumulative effects and effectively boosting market confidence. Third, new drivers of foreign trade are emerging more rapidly, with green and digital transformation gaining momentum. Fourth, policies aimed at stabilizing foreign trade continue to show their effectiveness, providing more support for enterprises to innovate, upgrade and expand into international markets. Fifth, China's opening-up has reached new heights. China's ultra-large-scale market provides more opportunities for global goods.

In 2025, we will continue to expand high-level opening-up, with a focus on high-quality development, to promote stable growth in foreign trade.

First, we will accelerate the implementation of various policy measures. Last year, we introduced a series of measures, including a slew of policy measures to promote the steady growth of foreign trade. Looking ahead, we will work with local governments and departments to focus on policy implementation, promote effective practices and help foreign trade enterprises secure orders while resolving bottlenecks to ensure stable trade development.

Second, we will speed up fostering new growth drivers for foreign trade. In line with the trend of trade digitalization, we will expand the use of electronic trade documents and promote the full digitalization of the trade chain. We will actively expand green trade, help foreign trade enterprises strengthen their green and low-carbon development, promote the development of overseas smart logistics platforms, and support qualified regions in hosting cross-border e-commerce trade fairs and supply-demand matchmaking events. These initiatives will create more platforms for enterprise networking and promotion. Additionally, we will promote the sustained and healthy development of bonded maintenance services while expanding the scope of maintenance products and regions in an orderly manner.

Third, we will strengthen support services for businesses. We will continue organizing specialized training sessions focusing on green trade and cross-border e-commerce to strengthen foreign trade enterprises' development capabilities. We will continue publishing country-specific trade guidelines and foreign trade promotion materials to improve information sharing between Chinese and international businesses. We aim to actively expand the network of high-standard free trade zones globally, negotiate and establish a new working group on trade facilitation, and pragmatically address bottlenecks and difficulties in bilateral trade to create more business opportunities.

Fourth, we will actively expand imports. While meeting domestic production and consumption needs, we aim to share development opportunities with countries worldwide. China will continue leveraging major trade platforms including the China International Import Expo (CIIE), China International Consumer Products Expo, and the Canton Fair Import Exhibition. We will develop national import trade innovation demonstration zones, further open up the market and expand import potential, transforming China's vast market into global opportunities. Thank you.

Xing Huina:

Please raise your hands if you have any questions.

Phoenix TV:

What progress was made in promoting high-quality Belt and Road cooperation in 2024? Specifically, in the area of economic and trade cooperation, what are the key considerations for 2025? Thank you.

Li Yongjie:

Thank you for your questions. I will address them. In December of last year, General Secretary Xi Jinping delivered an important speech at the fourth symposium on building the Belt and Road, providing guidance for advancing the high-quality development of the BRI.

During the past year, MOFCOM, together with relevant parties, continued to deepen Belt and Road economic and trade cooperation, promoted the development of an open world economy and facilitated mutual benefits among all participating countries. I would like to briefly outline our efforts in the following three aspects:

First, trade cooperation continued to expand. In 2024, China's total trade volume with BRI countries reached 22.1 trillion yuan. On the import side, nearly 54% of our imported goods came from BRI countries. As my colleague just mentioned, China's vast market continues to provide development opportunities for countries worldwide. On the export side, our exports to BRI partner countries included not only consumer goods but also equipment and components, which helped promote industrial development in participating countries.

Second, bilateral investment deepened. In the first 11 months of last year, China's non-financial direct investment in BRI countries totaled 214.66 billion yuan, while these countries invested 99.87 billion yuan in China. We signed 36 new investment cooperation agreements, primarily focusing on emerging sectors such as the green economy, digital economy and blue economy. China also deepened industrial cooperation with countries like Malaysia and Indonesia under the model of "Two Countries, Twin Parks."

Third, key projects were implemented. In the first 11 months of last year, Chinese contractors completed projects worth 826.34 billion yuan in BRI countries. We also implemented more than 700 aid projects in BRI countries, ranging from landmark projects to "small and beautiful" projects. These projects helped host countries improve their development conditions.

Looking ahead to this year, we will continue to thoroughly study General Secretary Xi Jinping's important speeches and implement the Central Economic Work Conference guidelines. We will focus on four aspects to advance substantive progress in high-quality Belt and Road cooperation. These main aspects are as follows:

First, we will strengthen international cooperation on industrial and supply chains. We will actively expand trade, investment and industrial cooperation with BRI countries and further leverage the role of overseas economic and trade cooperation zones and "Two Countries, Twin Parks" platforms. We will continue to successfully host major exhibitions like CIIE and regional events such as the China-ASEAN Expo to pragmatically promote the further development of two-way trade and investment.

Second, we will deepen cooperation on practical projects. We will promote both landmark projects and "small and beautiful" livelihoods initiatives. We will enhance the quality and efficiency of our overseas contracted projects, collaborate with BRI partners on key infrastructure development and operations, and develop a multidimensional connectivity network. Additionally, we will work to implement more "small and beautiful" projects that deliver results, supporting BRI countries in improving people's livelihoods.

Third, we will expand cooperation in emerging sectors. We will continue to strengthen practical cooperation in areas such as the digital economy, clean energy and green mining. Additionally, we will deepen international cooperation in Silk Road e-commerce to help BRI countries achieve green development and digital transformation.

Fourth, we will improve economic and trade cooperation mechanisms. We will negotiate and conclude free trade agreements and bilateral investment treaties with more BRI countries and establish cooperation frameworks for digital and green economy initiatives. We will leverage mechanisms like bilateral economic and trade joint commissions and working groups for trade facilitation and investment cooperation to enhance communication and coordination with BRI countries, creating new highlights and delivering tangible results. Thank you.

Bloomberg News:

I have two questions. First, regarding export controls. We know China has criticized the United States for imposing export controls on high-tech products, citing national security concerns. However, China has now begun implementing similar measures, recently controlling exports of metal processing technology and drones. What are the objectives of these controls? How do these export restrictions or prohibitions contribute to China's national security? Second, yesterday, the European Union criticized China for discrimination in medical device procurement, while Mr. Meng just spoke about improving business conditions for foreign-invested firms. Will you change how local governments across China procure goods, such as medical devices, so there is a level playing field for foreign firms? Thank you.

Li Yongjie:

Thank you for your questions. With regard to the EU comments mentioned in your question, please direct your inquiry to the relevant department. I want to emphasize that if foreign companies operating in China encounter any issues, they may report these to either their local commerce authorities or the Ministry of Commerce. As for your question about export controls, I'll ask my colleague, Mr. Meng, to provide a response.

Meng Yue:

I'm glad to answer your question. The Chinese government has consistently implemented export controls in a prudent and measured manner, with the aim of safeguarding national security and fulfilling our international obligations. The dual-use items we recently added to the control list clearly have both military and civilian applications. China's export controls on these items demonstrate its firm commitment to maintaining world peace and regional stability, serving both China's national security interests and the broader goal of global security. Thank you.

International Business Daily:

We note that as of early 2025, both the China-Singapore Free Trade Agreement Further Upgrade Protocol and the China-Maldives Free Trade Agreement have officially taken effect. Could you please outline the Ministry of Commerce's efforts in 2024 to expand its network of high-standard free trade zones and further enhance opening-up measures? What new initiatives are planned for 2025? Thank you.

Li Yongjie:

Thank you for your question. Let me address this matter. We appreciate your interest in the Ministry of Commerce's work on free trade agreement negotiations. As outlined at the third plenary session of the 20th CPC Central Committee, China is committed to expanding its network of high-standard free trade zones with global partners. As my colleague noted earlier in response to questions about foreign trade, China has now signed 23 free trade agreements with 30 countries and regions. Our free trade partners span five continents, and our network of free trade zones continues to expand and deepen.

In 2024, we achieved new milestones in free trade zone development, broadening our network of free trade partners. First, a batch of free trade agreements officially came into effect, including four free trade agreements with Nicaragua, Ecuador, Serbia and the Maldives, a further upgrade protocol to the free trade agreement with Singapore, and an early harvest arrangement for the free trade agreement with Honduras. Several free trade arrangements have also achieved phased progress. For example, we have signed a trade in services and investment agreement with Belarus, and an upgrade protocol to the free trade agreement with Peru. As mentioned in my opening remarks, we have essentially concluded Version 3.0 China-ASEAN FTA negotiations. We have also launched a series of free trade negotiations, including initiating free trade agreement negotiations with El Salvador, beginning upgrade negotiations for the free trade agreement with Switzerland, and conducting negative list negotiations for the free trade agreement with New Zealand.

Beyond expanding our network of free trade partners, we have also enhanced the level of openness in our free trade agreements. The scope of our free trade agreements continues to expand. In addition to the familiar tariff concessions, our newly signed agreements now extensively cover negative lists for trade in services and investment, mutual recognition and cooperation in standards, as well as digital economy cooperation. These institutional arrangements for high-standard opening up will bring tangible benefits to businesses and people in both China and our free trade partner countries. Let me give two examples. First, as you mentioned, the China-Singapore Free Trade Agreement Further Upgrade Protocol took effect on Dec. 31, 2024. In this protocol, China and Singapore have made high-standard commitments to services and investment liberalization using a negative list approach, significantly reducing market access restrictions. This will further unlock bilateral cooperation potential and deepen the comprehensive, high-quality and forward-looking partnership between our two countries. Another example is the China-Maldives Free Trade Agreement, which you mentioned earlier, that took effect Jan. 1, 2025. Under this agreement, both sides will ultimately achieve zero tariffs on more than 95% of tariff lines and import value. The parties have also agreed to further open their service sectors and promote and protect two-way investment. This serves as a practical measure to implement the important consensus reached by the two countries' leaders and enhance their comprehensive strategic partnership.

In 2025, our free trade agreement negotiation agenda remains substantial. We will continue to actively pursue membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA), engage with member countries, and advance domestic reforms to align with these agreements' standards. We will also advance negotiations for new free trade agreements or upgrades to existing ones with several partners, including the Gulf Cooperation Council, Honduras, El Salvador, New Zealand, South Korea, Switzerland and others. We will work toward signing Version 3.0 of the China-ASEAN FTA on schedule and negotiate free trade agreements with additional interested countries and regions to expand our global network of high-standard free trade zones. At the same time, we will ensure high-quality implementation of existing free trade agreements, such as RCEP, so that these agreements can better serve businesses and people in both China and our free trade partner countries. Thank you.

China Financial and Economic News:

As trade in services takes on an increasingly prominent role in international trade, could you outline the Ministry of Commerce's efforts to promote its high-quality development? What future plans and measures are being considered? Thank you.

Li Yongjie:

Thank you. I'll ask my colleague, Mr. Meng, to address this question.

Meng Yue:

Thank you for your question. In recent years, China's trade in services has developed rapidly, with steadily expanding trade volume, continuous structural optimization, and strengthening international competitiveness. From January to November last year, China's trade in services maintained strong growth momentum, with total imports and exports reaching 6.7 trillion yuan, up 14.2% year on year. Exports rose by 17.2%, while imports grew by 12.2%. Total service trade volume for the year is expected to exceed $1 trillion for the first time.

In August last year, the State Council officially issued the Opinions on Promoting High-Quality Development of Trade in Services through High-Standard Opening Up, offering a comprehensive and systematic plan for developing trade in services under the new circumstances. Going forward, MOFCOM will implement the decisions of the CPC Central Committee and the State Council, promote the implementation of various policies and measures in the opinions, and boost trade in services through innovation in three key areas to foster high-quality development.

First, we will take innovative measures to enhance the level of institutional opening up. We will fully apply the negative list for cross-border trade in services and promote the opening up of cross-border trade in services in a phased and orderly manner. We will proactively align with high international standards for economics and trade, and promote the consistency and compatibility of rules, regulations, management practices and standards in the service trade sector. We will launch the construction of national demonstration zones for the innovative development of trade in services and create a number of demonstration platforms for comprehensive reform and opening up in the service trade sector. We will implement an action plan for trade in services standardization to improve the level of standardization in trade in services.

Second, we will take innovative measures to enhance new business forms and models. We will adapt to the digital and green development trends in trade in services and actively cultivate new drivers of growth in trade in services. We will support professional service organizations, such as those in finance, consulting, design, and certification and accreditation, to enhance their capacity to provide international services. We will develop green technology trade and green trade in services. We will innovate the "bonded+trade in services" regulatory model to promote the integrated development of trade in services and trade in goods.

Third, we will take innovative measures to enhance international cooperation mechanisms. We will further expand multilateral, bilateral and regional cooperation mechanisms for trade in services and digital trade. We will continue to leverage the role of major exhibition platforms such as the China International Fair for Trade in Services. We will support qualified regions in building international cooperation parks for trade in services and continuously optimize the environment for opening up and cooperation. Thank you.

CCTV:

We would like to understand, how was the consumer market performing in 2024, and what were its main characteristics? How do you assess the trends in the consumer market for 2025? Thank you.

Li Yongjie:

Thank you for your questions. My colleague Mr. Li Gang will answer them.

Li Gang:

Thanks for your questions. In 2024, China's consumer market generally maintained a stable development trend. From January to November, total retail sales of consumer goods reached 44.3 trillion yuan, a year-on-year increase of 3.5%. The consumer market mainly exhibited the following characteristics.

First, strong growth in bulk consumption. The policy of trading in old consumer goods for new ones has been remarkably effective. In particular, since the implementation of strengthened support policies in July, sales of key commodities such as automobiles, home appliances and home furnishings have seen a significant rebound and positive trend. From January to November, retail sales of home appliances and furniture by enterprises above designated size increased by 9.6% and 2.9% year on year, respectively. In November alone, these figures rose by 22.2% and 10.5%, respectively. Passenger vehicle retail sales grew by 4.7% year on year.

Second, high demand for services consumption. As policies promoting the high-quality development of service consumption are implemented and take effect, consumption scenarios continue to expand, resulting in rapid growth in service consumption. From January to November, retail service sales grew 6.4% year on year. Cultural and tourism consumption remains active; in the first three quarters, the number of domestic tourist trips and total travel expenditure increased 15.3% and 17.9%, respectively.

Third, numerous highlights in new forms of consumption. New technologies such as big data, artificial intelligence (AI) and virtual reality are being rapidly applied, stimulating new drivers of consumption. From January to November, national online retail sales increased 7.4%. During the "Double 11" shopping festival, sales of smart learning devices, smart headphones and other products more than doubled. Green consumption is increasingly embraced by consumers. From January to November, retail sales of new energy passenger vehicles increased 41.2% year on year, with a penetration rate exceeding 50% for five consecutive months.

Fourth, strong dynamism in county-level consumption. Improved county-level commercial systems and steady increases in farmers' incomes have boosted the vitality of consumer markets at the county level. In the first three quarters, per capita consumption expenditure for rural residents increased 6.5% year on year. Rural retail sales of consumer goods totaled 6 trillion yuan from January to November, up 4.3% year on year.

Looking ahead to 2025, China's economy has a stable foundation, many advantages, strong resilience and great potential, ensuring the support conditions and basic trends of long-term growth remain unchanged. As policies and measures for boosting consumption continue to take effect, the consumer market is expected to maintain steady growth. Thank you.

Xing Huina:

Due to time constraints, we will take one last question. Please raise your hand to ask a question.

China News Service:

In recent years, China's green transition has been accelerating. What measures did MOFCOM take to promote green trade in 2024? And what are your considerations going forward? Thank you.

Li Yongjie:

Thank you for your questions. I would like to invite Mr. Meng to answer this question.

Meng Yue:

Thank you for your questions. The international community has reached a common consensus about advancing the transition to green and low-carbon economic and social development, and developing green trade has also become an overwhelming trend. The CPC Central Committee and the State Council have attached great importance to green trade. The third plenary session of the 20th CPC Central Committee and the Central Economic Work Conference have both issued arrangements, proposing actively developing green trade.

In recent years, Chinese foreign trade enterprises have actively adapted to the trend of green trade and transformed the philosophy of green and low-carbon development into high-quality products, enriching global supply, and making significant contributions to global efforts to address climate change. China's new energy vehicles, wind power equipment and other products are highly aligned with current demands and trends in the international market, and are favored by global consumers. They have become a widely acclaimed symbol through which China shares the achievements of its green transition and development with the world. The International Renewable Energy Agency reported that over the past decade, the global average costs of generating one kilowatt-hour of electricity from wind and photovoltaic power have decreased by more than 60% and 80%, respectively, largely thanks to contributions from China.

Since 2024, MOFCOM has been tracking the development trends of green trade and has gained an in-depth understanding of the needs of foreign trade enterprises in this area. Through organizing specialized training, compiling knowledge manuals, selecting best practices and launching public service platforms, MOFCOM has guided foreign trade enterprises to pursue green and low-carbon development, accelerating the green transition of foreign trade industrial and supply chains.

In the next phase, in accordance with the requirements of the Central Economic Work Conference, we will actively develop green trade, focusing on the following three aspects: First, we will introduce policies. We will work with the National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Ecology and Environment, and other departments to form synergies, promptly introduce special policies for the development of green trade, expand the import and export of related products and services, and promote green and low-carbon development throughout the entire process of foreign trade. Second, we will optimize services We will further optimize public services such as service platforms and specialized training and strengthen explanations of policies and regulations, the sharing of market information and promotion of excellent experiences, to enhance the awareness and capabilities of foreign trade enterprises in pursuing green and low-carbon development. At the same time, we will promote contact between third-party carbon service agencies and foreign trade enterprises to improve the quality and efficiency of carbon services such as carbon footprint certification. Third, we will promote cooperation. We will continue to actively participate in negotiations on high-standard trade and economic agreement through multilateral and bilateral channels and expand international cooperation in the green and low-carbon sectors to make positive contributions to promoting global green trade development. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Any reporters with additional questions may contact us after the briefing. Thank you to all the speakers and friends from the media. Goodbye.

Translated and edited by Wang Yiming, Chen Xinyan, Yan Bin, Wang Xingguang, Cui Can, Mi Xingang, Xu Kailin, Wang Qian, Li Xiao, Huang Shan, Fan Junmei, Li Huiru, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Xuan Changneng, deputy governor of the People's Bank of China (PBC)

Mr. Li Bin, deputy director of the State Administration of Foreign Exchange (SAFE)

Mr. Zou Lan, spokesperson of the PBC and director general of the Monetary Policy Department of the PBC

Ms. Zhang Wenhong, deputy director general of the Statistics and Analysis Department of the PBC

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

Chairperson:

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

Date:

Jan. 14, 2025

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 "High-Quality Development Achievements of China's Economy." Today, we have invited Mr. Xuan Changneng, deputy governor of the People's Bank of China (PBC), and Mr. Li Bin, deputy director of the State Administration of Foreign Exchange (SAFE), to introduce the financial support for high-quality economic development and answer your questions. Also attending today's press conference are: Mr. Zou Lan, spokesperson of the PBC and director general of the Monetary Policy Department of the PBC; Ms. Zhang Wenhong, deputy director general of the Statistics and Analysis Department of the PBC; and Mr. Jia Ning, director general of the Balance of Payments Department at SAFE.

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

Xuan Changneng:

Good afternoon. I am delighted to have this opportunity to meet you all today. Next, I will briefly introduce the situation regarding financial support for high-quality economic development, as well as the work plan going forward.

In 2024, the PBC maintained a supportive monetary policy stance, implementing four significant adjustments to monetary policy to sustain the upward recovery trend and support high-quality economic development. This is mainly reflected in four aspects:

In terms of the overall volume, we have maintained steady growth in monetary credit. By comprehensively utilizing a variety of monetary policy tools, we have ensured that liquidity remains reasonably abundant, promoting reasonable growth in the scale of social financing and monetary credit, and guiding a continuous decline in loan interest rates. Last year, we reduced the statutory deposit reserve ratio twice by a total of 1 percentage point and lowered the central bank's policy interest rates by a total of 0.3 percentage point, both representing the largest adjustments in recent years.

In terms of structure, we have intensified support for key areas. A total of 500 billion yuan has been allocated for technological innovation and technical transformation re-loans, effectively guiding financial institutions in increasing their financial support for first-time tech-oriented small- and medium-sized enterprises (SMEs), as well as for key projects in technological upgrade and equipment renewal projects. As of the end of last year, banks have matched 22,000 projects for marketing purposes, with signed loan contracts totaling 838.9 billion yuan ready for enterprises to draw upon at any time. Additionally, a 300 billion yuan re-lending program for government-subsidized housing was launched, the lower limit on mortgage interest rates has been removed, and efforts have been made to further reduce mortgage interest rates of existing houses, reducing borrowers' annual mortgage interest expenses by approximately 150 billion yuan. This dual approach supports the stable and healthy development of the real estate market. Two support tools for the capital market have also been created, effectively improving expectations in the capital market.

In terms of transmission, we streamlined the channels for the transmission of policy interest rates. The main policy rates have been clarified, gradually smoothing the transmission relationship from short to long-term interest rates. At the same time, we have strengthened the implementation of interest rate policies, addressed the idle flow of funds, vigorously rectified manual interest subsidies, optimized self-regulation of corporate deposits and interbank demand deposit interest rates, thereby reducing banks' interest expenses and creating conditions for reducing social financing costs and balancing sustainable bank development.

In terms of the exchange rate, the RMB exchange rate has remained basically stable at a reasonable and balanced level under complex circumstances. We have adhered to the market's decisive role in forming exchange rates, effectively utilizing the regulatory functions of the exchange rate on macroeconomics and the balance of payments. Meanwhile, through comprehensive measures, stabilizing expectations, public declarations of the central bank's stance and effective use of macro-prudential management tools, a series of robust measures have been adopted to prevent the risks of exchange rate overshooting.

Overall, the monetary policy in 2024 achieved favorable results. The total amount of finance grew reasonably. At the end of December, the social financing scale increased by 8.0% year on year, the broad money supply (M2) grew by 7.3% year on year, and RMB loans increased by 7.6% year on year, all higher than the nominal economic growth rate. Loan interest rates have been steadily declining. In December, the interest rate for newly issued corporate loans was approximately 3.43%, down 0.36 percentage point year on year, and the interest rate for personal housing loans was approximately 3.11%, down 0.88 percentage point year on year. The credit structure continued to improve, with medium- and long-term loans to the manufacturing industry increasing by 11.9% year on year, loans to specialized and sophisticated enterprises that produce new and unique products growing by 13.0% year on year, and inclusive loans to micro and small businesses rising by 14.6% year on year, continuing to outpace the overall loan growth rate for the same period. The RMB exchange rate remained basically stable at a reasonable and balanced level, with the exchange rate stabilizing at around 100 against a basket of currencies, taking into account both internal and external balance.

Following the central government's directive to implement more proactive and effective macroeconomic policies, the PBC will implement moderately loose monetary policies this year. In recent years, prudent monetary policy has increasingly emphasized requirements of being more forceful, effective, precise and flexible, with a tendency toward a more relaxed control range. It will also continuously strengthen counter-cyclical adjustments based on mid-year economic performance, and has consistently reduced reserve requirements and interest rates since the end of 2019, resulting in a relatively loose social financing environment.

In the next stage, macroeconomic policies will further strengthen counter-cyclical adjustments. We will appropriately adjust and optimize the intensity and timing based on domestic and international economic and financial conditions and financial market performance, to support the achievement of annual economic and social development goals. We will comprehensively use various monetary policy tools, such as interest rates and the reserve requirement ratio (RRR), to maintain ample liquidity and ensure a relaxed social financing environment. We will strengthen the implementation of interest rate policies, and further reduce overall social financing costs while maintaining healthy financial operations. We will effectively utilize structural monetary policy tools and leverage the dual functions of monetary policy tools in terms of both volume and structure. We will continue to take comprehensive measures to maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

That's all for my introduction. Next, my colleagues and I will be happy to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Xuan, for your introduction. Next, Mr. Li will also present an introduction.

Li Bin:

Friends from the media, good afternoon. Thank you for your long-term interest in and support for the work concerning foreign exchange management. Just now, Mr. Xuan provided a comprehensive and systematic introduction of the monetary policy and other financial support for high-quality economic development. Next, I will provide a supplementary introduction on the support for economic development of the foreign exchange sector.

Over the past year, SAFE has implemented the decisions and deployments of the Central Committee of the Communist Party of China (CPC), adhered to the approach of addressing external challenges through reform and opening up, and continued to advance high-level opening up in the foreign exchange sector and the reform to facilitate cross-border trade, investment and financing. We have canceled administrative licensing for the registration of foreign trade enterprises. Since the reform, banks can generally complete registration procedures within 15 minutes, with more than 100,000 enterprises having so far benefited from this policy. We have actively supported the development of new forms of trade, facilitating foreign exchange transactions for cross-border e-commerce totaling approximately $26 billion throughout the year. We have continued to promote the facilitation of cross-border financing, with policies benefiting 1.3 million innovative technology enterprises. We have further advanced the construction of the cross-border financial services platform, which has so far helped over 100,000 enterprises obtain financing totaling more than $380 billion, and facilitated foreign exchange payments of nearly $2 trillion for enterprises. We have optimized the fund management regulations for qualified foreign institutional investors (QFIIs) investing in domestic securities and futures, and supported domestic institutions in conducting cross-border securities investments in an orderly manner. We have further optimized the pilot policies for integrated foreign and domestic currency cash pooling for multinational companies, facilitating the collection and use of funds by multinational companies. Currently, more than 18,000 member enterprises of multinational companies have benefited from the cash-pooling service. At the same time, we have also focused on improving regulatory capabilities under open conditions, resolutely preventing and mitigating risks from external shocks, strictly cracking down on illegal foreign exchange activities, and maintaining the healthy development of the foreign exchange market.

Overall, the foreign exchange management work in 2024 achieved good results. Cross-border trade and investment was more active. In 2024, the total foreign-related receipts and payments of enterprises, individuals and other non-banking sectors amounted to $14.3 trillion, an increase of 14.6% compared to 2023, reaching a record high. The transaction volume in the domestic RMB foreign exchange market exceeded $41 trillion, an increase of 14.8% compared to 2023. The balance of international payments remained basically balanced. In the first three quarters of 2024, the current account surplus was $241.3 billion, with a ratio to China's GDP of 1.8%, which is within the internationally recognized equilibrium range. Preliminary estimates indicate that the current account will continue to maintain a reasonable surplus in the fourth quarter. China's outbound investment has grown rapidly. By the end of September 2024, foreign assets exceeded $10 trillion for the first time. Capital inflows from direct investment and securities investment in China have maintained a net inflow. The balance of foreign exchange reserves remained stable above $3.2 trillion, and the RMB exchange rate remained generally stable at a reasonable and balanced level.

In the coming period, the momentum of China's economic recovery and improvement will be further consolidated, the equilibrium in the balance of payments will not change, the resilience of the foreign exchange market will continue to strengthen, and the RMB exchange rate has the right conditions to remain generally stable. SAFE will thoroughly study and implement the guiding principles of the Central Economic Work Conference, better coordinate development and security, implement more proactive and effective foreign exchange management policies, and contribute to supporting high-quality economic development and high-level opening up. That's all for my introduction. Thank you.

Shou Xiaoli:

Thank you, Mr. Li. The floor is now open for questions. Please identify your news outlet before asking questions. Please raise your hand to ask a question.

Market News International:

With the recent downward trend in China's treasury bond yields, the widening interest rate gap between China and the United States and increasing pressure on depreciation of the RMB, will this restrict room for monetary policy easing and its intensity? And what measures will be taken to stabilize the exchange rate? Thank you.

Xuan Changneng:

Thank you for your questions, I will answer them. The PBC implements policies primarily considering the domestic economic and financial situation, while also taking into account both internal and external balance. In 2024, the international situation was complex and fast-changing, with multiple factors driving the U.S. dollar index to fluctuate and strengthen. China's foreign exchange market has shown remarkable resilience, with the RMB exchange rate generally exhibiting a two-way fluctuation trend, maintaining basic stability under the complex circumstances. Among major currencies, it has performed relatively well, creating favorable conditions for China to independently implement monetary policies and playing a positive role in stabilizing the economy and foreign trade. At the end of 2024, the CFETS yuan exchange rate composite index, which measures the yuan's strength relative to a basket of currencies, was 101.47, up 4.2% from the end of the previous year. The closing price of the RMB against the U.S. dollar was 7.2988, a depreciation of 2.8% from the end of the previous year. During the same period, the U.S. dollar index rose by 7%, fully reflecting the resilience of the RMB.

In the coming period, the complexity, severity and uncertainty of the external environment may further increase. However, China's economic foundation is solid, its current account remains in surplus, cross-border capital flows are independently balanced, foreign exchange reserves are ample, and the foreign exchange market is resilient, providing certainty and strong support for maintaining the basic stability of the RMB exchange rate.

First, the macroeconomic landscape is more solid. Since last year, and especially since September, a package of incremental measures have been introduced and will continue to take effect. The Central Economic Work Conference laid out plans to implement a more proactive fiscal policy and moderately loose monetary policy in 2025, which will further consolidate the recovery and positive momentum of China's economy. Second, the current account has maintained a surplus for several years. In the first 11 months of 2024, the trade surplus was $884.6 billion, an increase of 18.4% year on year, providing strong support for balancing foreign exchange supply and demand. Third, cross-border capital flows have been independently balanced. We have made steady progress in opening up the financial markets, improved the facilitation for cross-border investment and financing, and attracted stable inflows of medium- and long-term capital from abroad. Fourth, the overall foreign exchange reserves remained stable, effectively serving as an anchor for national economic and financial stability. Fifth, the foreign exchange market is more resilient. Market participants have become more mature, and their trading behavior is more rational. The awareness of exchange rate risk neutrality is being continuously enhanced, and more exchange rate hedging tools are being used. These provide a very important micro-foundation for the stable operation of the foreign exchange market and the balance of foreign exchange supply and demand. At present, the RMB payments and receipts accounted for 30% in cross-border trade in goods, and the proportion of enterprises' foreign exchange hedging has reached 27%. These represent very good micro-foundations for the foreign exchange market.

The PBC has a clear and consistent exchange rate policy. The goal of maintaining the basic stability of the RMB exchange rate will not change. Over the years, we have accumulated rich experience in coping with external shocks, and we have the confidence, conditions and ability to firmly achieve this goal. In the next phase, we will continue to take comprehensive measures to enhance the resilience of the foreign exchange market, stabilize market expectations and strengthen market management. We will also firmly rectify pro-cyclical actions in the market, take strong actions against disruptions to the market order, firmly prevent the risk of exchange rate overshooting, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

Thank you.

CCTV:

As mentioned earlier, the PBC introduced two new monetary policy tools last year to support the stable development of the capital market. I'd like to ask: How are these two monetary policy tools currently performing? What additional measures are planned for the future? Thank you.

Xuan Changneng:

I'd like to invite Mr. Zou to answer these questions.

Zou Lan:

Thank you for your questions. The capital market is both a "weather vane" of confidence and a vital channel for allocating financial resources, closely tied to economic development. Relevant departments have continually enhanced the functions of the capital market to give balanced weight to investment and financing, promoting its stable, healthy development through a series of policy measures. An important aspect of this is strengthening listed companies' responsibility for market value management while leveraging securities firms, funds and other institutional players as main stabilizing forces in the market. Current regulatory provisions do not allow companies to take out loans to purchase stocks. Related securities institutions are also facing funding shortages. In response, the PBC has created two tools to support the stable development of the capital market and enhance the financing and investment capabilities of relevant institutions, creating conditions and providing incentives for them to continuously implement new management requirements.

The two tools adhere to market-oriented and law-based principles. Listed companies and institutional players can independently decide the timing and scale of stock purchases based on market conditions, which helps leverage the market's selection functions and correct over-adjustments in the capital market. Since September last year, confidence in the capital market has significantly increased, with both trading volume and market indices rising substantially. This has given relevant companies and institutions more time to familiarize themselves with the new tools, make necessary preparations, and retain flexibility for using them when needed. By the end of 2024, the cumulative operations of securities, funds and insurance companies' swap facilities had exceeded 100 billion yuan. Financial institutions had signed stock repurchase and share increase reloan agreements with more than 700 listed companies or major shareholders, with a value exceeding 30 billion yuan. The market-wide disclosed ceiling for stock repurchase and share increase plans in 2024 had approached 300 billion yuan.

When the market value of stocks is significantly underestimated, listed companies, major shareholders and securities institutions, driven by their own interests, will have sufficient willingness to use the low-cost incremental funds provided by the two tools to repurchase or increase their holdings of stocks. This creates an inherent stabilizing mechanism that can effectively stabilize the market and curb its negative circulation. The PBC will further improve tool design and institutional arrangements based on practical experience to date, continuously enhancing the tools' accessibility. Relevant enterprises and institutions can obtain sufficient funds as needed to increase investment.

Thank you.

National Business Daily:

The Central Economic Work Conference emphasized maintaining a basic equilibrium in the balance of payments. How would you assess China's balance of payments situation in 2024? With external risks and challenges potentially increasing in 2025, what impact might this have on China's balance of payments? Thank you.

Li Bin:

On this balance of payments question, I'd like to invite Mr. Jia to respond.

Jia Ning:

Thank you for your interest in the balance of payments situation. The balance of payments provides a comprehensive record of all transactions between a country and other economies, including goods trade, service trade and investment income under the current account, as well as direct investment, securities investment, deposits and loans, and official reserves in the capital and financial accounts. This comprehensively reflects a country's external economic development and its internal-external balance. Two key criteria are generally used to assess a basic equilibrium in the balance of payments. First, the current account balance to GDP ratio should stay within ±4%, without prolonged periods of excessive surpluses or deficits. Second, the current account and non-reserve financial account should achieve autonomous balance, meaning current account surpluses are channeled into foreign investments, or current account deficits are supported by stable external financing.

Mr. Li just introduced the current state of our country's balance of payments. In 2024, China's current account surplus to GDP ratio was expected to be around 2%, remaining within a reasonable and balanced range since 2011. At the same time, the non-reserve financial account showed a deficit, mainly due to increased outbound investments by domestic entities, which reached $346.9 billion in the first three quarters of 2024, a year-on-year increase of 1.4 times. The total net inflow of direct investment capital and securities investment into China totaled $153.4 billion. In recent years, China's forex market has shown increased self-regulating ability. Goods trade surpluses and investment inflows have been converted into outbound investments by Chinese enterprises and banks. This is reflected in the balance of payments as a balance between the current account surplus and the non-reserve financial account deficit. The yuan exchange rate has remained basically stable at a reasonable and balanced level.

Looking at 2025, external uncertainties and instability remain, but China is implementing more proactive and effective macroeconomic policies. Solid economic fundamentals will help boost market expectations and confidence. China's foreign trade and investment show resilience, the forex market remains stable, and the balance of payments has the foundation and conditions to maintain a basic equilibrium. Let's look at the specifics.

First, China's manufacturing industry continues to transform and upgrade steadily. The increased resilience in foreign trade will help maintain a reasonable surplus in the current account. China's manufacturing industry generates 30% of global added value, playing an irreplaceable role in global production and supply. At the same time, the transformation and upgrading of the manufacturing industry and diversification of trading partners continue, enhancing export competitiveness and reducing dependence on a single market. Despite adverse factors such as the rise of global trade protectionism, China's exports have generally remained stable. In the first three quarters of 2024, China's exports accounted for 14.5% of the global total, maintaining a relatively high level in recent years.

Second, China continues to expand high-level opening up, further consolidating and enhancing the resilience of the forex market. Two-way cross-border investment is expected to remain stable and orderly. China is deepening reforms in its foreign investment promotion system, steadily enhancing the convenience of cross-border investment and financing, which benefits foreign investors doing business in China. The opening of the financial market also encourages foreign investment in yuan assets. China's forex market continues to mature, with the market-based yuan exchange rate mechanism steadily improving. Companies have strengthened their awareness and capability in managing exchange rate risks, while cross-border yuan use has increased. These factors have contributed to more rational and orderly market transactions. In 2024, corporate forex hedging ratios reached 27%, while the share of yuan transactions in goods trade approached 30%, both hitting historic highs.

In addition, we have consistently placed great importance on external risks and challenges. The SAFE will continue to deepen reform and opening up in the forex sector to better serve the development of foreign trade and investment. It will improve the long-term mechanism for corporate exchange rate risk management, better supporting companies' exchange rate risk hedging. At the same time, it will strengthen forex market management, taking macro-prudential counter-cyclical adjustment measures when appropriate and resolutely correcting pro-cyclical behavior in the forex market. This will help maintain the basic stability of the yuan exchange rate at a reasonable and balanced level, ensuring a basic equilibrium in the balance of payments. Thank you.

Bloomberg News:

I have several questions about the treasury bond market. In the central bank's view, do current treasury bond yields accurately and fairly reflect the fundamentals of the economy? What further measures will the central bank take to manage risks in the treasury bond market? Additionally, we've noticed that the central bank has recently suspended its treasury bond purchases. Could you explain why these purchases were halted and how long this suspension might last? Will the central bank increase the scale of its government bond trading this year?

Xuan Changneng:

Let's invite Mr. Zou to answer these questions.

Zou Lan:

Thank you for your questions. Recently, the rapid decline in long-term treasury bond yields has drawn widespread attention. After years of development, China's treasury bond yield curve has essentially established itself as a benchmark for pricing in financial markets. The level of treasury bond yields not only affects the government's financing costs but also has broader implications for the stable development of the entire financial market. Overall, long-term government bond yields reflect market expectations for future long-term economic growth, while also being influenced by market supply and demand dynamics. Since 2024, China's economy has been recovering and improving amid fluctuations. In particular, market expectations and social confidence have significantly improved since September. The economy is expected to achieve the annual growth target of around 5%. The recently held Central Economic Work Conference once again emphasized implementing more proactive and effective macroeconomic policies for maintaining stable economic growth. The improvement in economic expectations will ultimately be reflected in government bond yield levels.

Treasury bonds represent sovereign credit. If held to maturity, bondholders are guaranteed to receive both the principal and stated coupon interest, with no credit risk. Therefore, treasury bonds are typically considered safe assets. However, since long-term treasury bonds carry fixed coupon rates, changes in market interest rate expectations can lead to price fluctuations in the secondary market, which can sometimes be significant. Therefore, investing in government bonds is not without risk. For example, if you had bought a 30-year treasury bond at the end of 2023 and sold it now, the coupon interest income would have been less than 3%. However, the total investment return, including capital gains, would be close to 20%. The high returns have attracted continuous inflows of various types of capital into this market. These changing supply-demand dynamics have further driven up prices, with trading volumes of certain bond issues exceeding 10 times their previous levels. Conversely, at the end of 2022, long-term treasury bond yields rose by about 20 basis points within a few days, causing a sharp decline in secondary market prices. Some bank wealth management products that invested in treasury bonds fell below their net asset value, triggering concentrated redemptions. This further accelerated the price decline and resulted in significant losses for investors. The 2023 Silicon Valley Bank incident is another similar example. Let me take the 30-year government bond as an example. If long-term treasury bond yields do not accurately reflect economic fundamentals, or if there is a significant change in supply and demand, a 30-basis-point rise in yields would result in a price decline of more than 5% in the secondary market. When we factor in the amplifying effects of financial leverage used by some institutions and the downward spiral triggered by concentrated redemptions, greater losses could occur in the short term.

The PBC respects the market and the choices of all market participants who take risks and make independent decisions. The central bank also highly values the market information reflected in treasury bond yield changes. China's bond market is relatively young, having not experienced significant upheavals since the 1990s. As a result, many investors, managers and particularly the general public are not fully aware of the market price risks that underlie the high returns on government bonds. Therefore, the PBC has strengthened macro-prudential management, repeatedly warned of risks and enhanced market supervision. During periods of lower issuance activity in the primary market, the central bank suspended its secondary market purchases and instead used other tools to inject liquidity. This strategy aims to avoid affecting investors' allocation decisions while preventing supply-demand imbalances and market volatility, ultimately ensuring the market's long-term stability.

Thank you.

Cover News:

In early December 2024, the central bank announced revisions to the statistical scope of M1. What were the considerations behind this change? What impact will this have on financial data statistics and monetary policy regulation in 2025? Thank you.

Xuan Changneng:

Ms. Zhang will address this question.

Zhang Wenhong:

I'll answer these questions. Thank you for your questions, and thank you for your interest in our financial statistics work. The money supply represents the total sum of financial instruments that serve as means of circulation and payment at a given point in time. It is a crucial indicator for financial statistics and analysis. The PBC has always placed great importance on adjusting the statistical scope of money supply based on economic and financial developments and changes in the liquidity of financial instruments. Since its establishment, China's money supply statistical framework has undergone four major adjustments. In recent years, China's financial markets and financial innovation have developed rapidly, leading to significant changes in the liquidity of financial instruments. The scope of financial instruments meeting the M1 statistical definition has also evolved, necessitating dynamic optimization of M1's statistical framework.

The optimization of M1 calculations now includes household demand deposits and prepaid funds held by non-bank payment institutions. When M1 calculations were first established in China, personal bank cards did not exist, much less mobile payment systems. Since individual demand deposits could not be used for instant transfers and payments at that time, they were not included in M1 calculations. With the rapid advancement in payment technologies, household demand deposits now support instant transfers and payments. Individuals can make payments directly from these accounts without withdrawing cash. Since household demand deposits now have liquidity characteristics similar to corporate demand deposits, they should be included in M1. Customer funds held in non-bank payment institutions, such as WeChat Pay and Alipay balances, can be used directly for payments and transactions. Given their high liquidity characteristics, these funds should be included in M1. From an international perspective, M1 calculations in major economies typically include household demand deposits and other highly liquid payment instruments.

Financial statistics must provide an objective picture of financial operations. When defining the scope of statistical indicators, we must adhere to principles of scientific soundness and effectiveness to support policy decision-making. After recalculating historical data, we found that the revised M1 statistics show a stronger correlation with economic growth indicators and improved stability. The PBC will continue to maintain statistical transparency. Beginning in January 2025, we will implement the revised scope for M1 calculations, with the first release of this data expected in early February. Meanwhile, we will release revised M1 balances and growth rates dating back to January 2024. Thank you.

China Business News:

In recent years, interest rates have continued to decline and are currently at relatively low levels. The central bank has emphasized improving the transmission and implementation of interest rate policies and expanding policy space. What considerations are there for the next phase? Thank you.

Xuan Changneng:

I will answer this question. The interest rate system in China can be divided into three levels: The first level is the central bank's policy rate, which is currently the seven-day reverse repo rate for open market operations. When people talk about interest rate cuts, they're typically referring to a reduction in this rate. The second level consists of market benchmark rates. As Mr. Zou noted earlier, the treasury bond yield curve is a crucial component of these benchmark rates, serving as a key pricing reference for both the bond market and many other financial assets. The third level consists of market rates such as deposit and lending rates, which reflect the ultimate impact of lower financing costs. In recent years, the influence of policy rates as a guiding tool has become more apparent. Last year, the policy rate fell by 0.3 percentage point, guiding the one-year loan prime rate down by 0.35 percentage point and the five-year-plus loan prime rate down by 0.6 percentage point. This led to an even larger decline in lending rates. To achieve the goal of reducing overall social financing costs, we will take holistic approaches to expand the space for interest rate policies.

First, we will strengthen the execution of interest rate policies. Last year, the PBC cracked down on illegal "manual interest supplementation" practices used to attract high-rate deposits. It also improved self-regulation of interest rates for corporate and interbank demand deposits, maintaining market order and helping banks reduce overall social financing costs. This year, we will strengthen these efforts to further reduce banks' overall liability costs and ease pressure on net interest margins. This will help balance banks' balance sheet health with lower financing costs for the real economy.

Second, we will ensure a good balance between internal and external factors. The yuan exchange rate's stability is backed by solid fundamentals. As mentioned earlier, we will implement multiple measures to prevent exchange rate overshooting risks amid changes in the external environment. We aim to maintain the yuan's basic stability at reasonable and balanced levels, establishing a foundation for adjustments based on domestic economic and financial conditions.

Third, we will accelerate the replenishment of bank capital. The MOF recently clarified it will support major commercial banks' capital reinforcement through special treasury bond issuance. Local government special bonds also serve as a key channel for strengthening small and medium-sized banks' capital, demonstrating the coordination between fiscal and monetary policies. Everyone knows that capital is the foundation for banks to support economic growth, drive structural reforms and manage risks. When the government takes measures to supplement bank capital, it enhances banks' ability to operate prudently, effectively serve the real economy and resist risks. To some extent, this also helps offset the impact of lower financing costs in the real economy on banks' internal capital generation.

Thank you.

Economic Daily:

The 2025 National Foreign Exchange Administration Work Conference emphasized implementing more proactive and effective forex management policies. Mr. Li also addressed this in his opening remarks. What specific plans and measures are being considered for the next phase? Thank you.

Li Bin:

Thank you for the question. Let me address this. In 2025, the SAFE will better coordinate high-quality development with high-level security, building forex management systems that are "more convenient, more open and safer." While adhering to reform and opening up amid a complex environment, we will manage financial risks effectively, better support stable foreign trade and investment, and help sustain economic recovery. We will focus on the following four aspects.

First, we will introduce more forex facilitation measures. We will continue to promote policies facilitating trade foreign exchange receipts and payments for high-quality enterprises, focusing on expanding to regions and small and medium-sized banks that previously benefited less. This will help more high-quality small- and medium-sized enterprises enjoy the convenience of reduced paperwork and simplified procedures. Considering the characteristics of new trade formats such as e-commerce platforms and comprehensive foreign trade service enterprises, we will better support export proceeds collection, simplify forex payment procedures for logistics, warehousing and returns, and enhance the convenience of forex settlement. We will also respond actively to project contractors' needs, supporting their unified management and independent allocation of funds for cross-national and cross-regional projects, thereby improving fund management efficiency.

Second, we will promote forex management reform for foreign direct investment. At present, China's cross-border direct investment has achieved basic convertibility. We are studying the elimination of registration requirements for preliminary foreign direct investment expenses and domestic reinvestment. This will further enhance forex convenience for foreign direct investment funds and create a better environment for foreign enterprises operating in China.

Third, we will further promote opening up in the forex sector. We will optimize fund management for domestic enterprises seeking overseas listings and simplify forex registration for overseas IPOs. We will increase financing facilitation quotas for tech companies when appropriate, helping innovative enterprises reduce their financing costs. We will improve multinational companies' fund pool policies, facilitating fund allocation between domestic and overseas units, enhancing cross-border fund efficiency and reducing corporate financial costs. We will support the strategy of enhancing pilot free trade zones, facilitate forex management innovation in the Hainan Free Trade Port and the Guangdong-Hong Kong-Macao Greater Bay Area, and bolster the development of international financial centers in Shanghai and Hong Kong

Fourth, we will focus on strengthening regulatory capabilities and risk management while promoting opening up. On the one hand, we will improve the monitoring and early warning system for cross-border capital flows. Together with the PBC, we will strengthen counter-cyclical adjustments and expectations management in the forex market, firmly correct pro-cyclical behavior, decisively crack down on behaviors that disrupt market order, resolutely prevent exchange rate overshooting risks, maintain the RMB's basic stability at reasonable levels, and preserve balance-of-payments equilibrium. On the other hand, we will build a more refined and effective forex regulatory system, maintain strong enforcement against illegal foreign exchange activities, and preserve orderly forex market operations. Thank you.

Xinhua Finance:

The Central Financial Work Conference outlined five major work priorities regarding finance. What were the highlights of the PBC's work in this regard for 2024? What policy considerations are there for 2025? Thank you.

Xuan Changneng:

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

Zou Lan:

Thank you for your questions. I'll answer these. Doing a good job in the five major areas of technology finance, green finance, inclusive finance, pension finance and digital finance is an important focus for the high-quality development of financial services for the real economy. Since the Central Financial Work Conference, the PBC, in conjunction with relevant departments, has formulated and issued guiding documents in various fields, refined work measures, accelerated policy transmission, and made positive progress.

Among the five major areas, technology finance ranks first. Mr. Xuan stated in his opening remarks that last year the PBC established a 500 billion yuan re-lending program for sci-tech innovation and technological transformation, continuously enhancing financial support for sci-tech innovation, advancing the development of pilot financial reform zones for scientific and technological innovation, optimizing the cross-border financing system and mechanism for tech enterprises, and building a diversified and relay-style sci-tech financial system. In terms of green finance, we have optimized carbon reduction support tools, and the pilot program in Shanghai expanded the scope of support to low-carbon transition, guiding more credit resources toward green and low-carbon development. In terms of inclusive finance, the interest rate for re-lending to support agriculture and small enterprises has been reduced from 2% to 1.75%, and the quota has been increased by 100 billion yuan. We have implemented five major special actions to increase financial support for all-around rural revitalization. Efforts have also been made in pension finance and digital finance, while systems and market development have been continuously strengthened.

At present, policy frameworks in various fields are basically sound, and structural monetary policy tools have achieved comprehensive coverage in the five areas, with continued effectiveness. Financial support has been improved. By the end of 2024, loans to enterprises that use specialized and sophisticated technologies to produce novel and unique products increased by 13% year on year, inclusive small and micro loans rose by 14.6% year on year, and agricultural-related loans grew by 9.8% year on year. By the end of the third quarter of 2024, green loans increased by 25.1% year on year. These loans grow significantly faster than all types of loans during the same period, indicating that the credit structure has been optimized further. The availability of financing has improved significantly. The number of micro-sized and small businesses receiving inclusive loans has exceeded 60 million, accounting for approximately one-third of business entities, while the loan approval rate for technology-based small- and medium-sized enterprises (SMEs) is close to 50%. Financing costs remain at a low level. In December 2024, the weighted average interest rate for newly issued corporate loans was around 3.43%.

Next, the PBC will further improve the top-level system design, formulate guidelines for the five major areas, refine policy measures by focusing on key areas and weak links, and comprehensively enhance the quality and efficiency of financial services for the real economy. First, we will strengthen positive incentives, leverage the guiding and driving role of structural monetary policy tools and macro credit policies, enhance coordination with fiscal policies, and guide financial institutions to increase credit resource input and optimize credit structures. Second, we will enhance the service capabilities of financial institutions, improve their internal incentive and restraint mechanisms, further diversify the range of financial products, and strengthen risk assessment capabilities and financial service technologies. Third, we will broaden financing channels, support enterprises in raising funds through bonds, equity and other market mechanisms, and increase the proportion of direct financing.

That's all from me. Thank you.

21st Century Business Herald:

What steps will the PBC take next to further enhance the international monetary functions of the RMB in areas such as cross-border payments, investment and financing?

Xuan Changneng:

Thank you. I'll take this question. In recent years, with the accelerated diversification of the international monetary system, the inherent demand among economic entities to use the RMB for trade settlement, investment and financing has been steadily increasing. Since the international financial crisis in particular, this demand has been continuously strengthening. The PBC has responded to market demand by swiftly implementing a series of measures to facilitate cross-border RMB usage, providing economic entities with more currency options for cross-border trade and investment settlements, thereby better supporting the real economy. These measures have several features: First, the policies are much better. In collaboration with SAFE, we continued to optimize fund management policies for domestic and foreign currency cash pools, overseas lending of domestic enterprises through commercial banks, and overseas listings of domestic enterprises, thereby enhancing the convenience of cross-border RMB usage. Second, the level of openness is higher. We have successively launched policy arrangements such as introducing the Cross-boundary Wealth Management Connect scheme in the Guangdong-Hong Kong-Macao Greater Bay Area and establishing multi-functional free trade account systems in Hainan and Hengqin. We have also improved policies for qualified foreign investors and actively promoted institutional opening-up. Third, the operation is more convenient. We continued to guide and promote commercial banks to optimize cross-border RMB business processes, improve transaction handling efficiency, and enhance service levels. Fourth, the network has been further improved. We continuously expanded the network of RMB clearing banks, increasing the number of participants and coverage areas of the RMB Cross-Border Interbank Payment System (CIPS), and providing fundamental support for cross-border use of RMB.

Overall, with the joint efforts of all parties, various indicators of RMB international use have steadily improved, and the capacity of cross-border RMB business to serve the real economy has continued to strengthen. In terms of payment functionality, the RMB has now become the world's fourth most actively used payment currency. Last year, the amount of cross-border RMB receipts and payments reached approximately 64 trillion yuan, a year-on-year increase of 23%. In terms of financing, the RMB has become one of the top three currencies for global trade financing. In 2024, foreign financial institutions and enterprises issued nearly 200 billion yuan in panda bonds in China, marking a year-on-year increase of 32%, while the issuance of offshore RMB bonds surged by 150% year on year. In terms of its reserve function, the RMB has been included in the foreign exchange reserves of over 80 foreign central banks or monetary authorities. In the offshore RMB market, the balance of RMB deposits in Hong Kong exceeds 1 trillion yuan, while the balance of RMB loans is close to 700 billion yuan, both reaching historic highs.

In the next stage, the PBC will continue to adhere to the principles of being market-driven and achieving mutual benefits, balancing development and security, and creating a more favorable environment for domestic and international entities to hold and use the RMB. First, we will strengthen coordination between domestic and foreign currencies, further improve policies for cross-border use of RMB, and enhance the convenience of handling cross-border RMB transactions. Second, we will support investment and liquidity management in RMB, increase risk-hedging tools, and support Shanghai's efforts to establish itself as a center for RMB financial asset allocation and risk management. Third, we will facilitate business entities in conducting cross-border financing activities in RMB, supporting RMB trade financing, overseas loans and RMB bond issuance. Fourth, we will improve the supply mechanism of offshore RMB liquidity, support the healthy development of the offshore RMB market, and enhance Hong Kong's status as both an international financial center and an offshore RMB business hub. Fifth, we will improve the infrastructure arrangements for the use of RMB in cross-border transactions, establish new RMB settlement banks in a reasonable manner, and continuously enhance the functions and services of the RMB cross-border payment system.

That's all from me. Thank you.

Shou Xiaoli:

Two reporters have their hands raised. We'll take the last two questions, please.

Phoenix TV:

The PBC has just released financial statistics for 2024. How should we view the aggregate financing and its structural characteristics in 2024? Thank you.

Zhang Wenhong:

Thank you for your question. I'll answer this one. At the end of 2024, China's aggregate financing stood at 408.34 trillion yuan, an increase of 8% year on year, with a growth rate 0.2 percentage point higher than the previous month. The aggregate financing increment in 2024 reached 32.26 trillion yuan, a historically high level. In terms of structure, the aggregate financing increment has the following main features:

First, financial institutions maintained a reasonable growth in loans to the real economy. In 2024, RMB loans issued by financial institutions to the real economy totaled 17.05 trillion yuan.

Second, the financial system continued to work in tandem with fiscal efforts, resulting in a significant year-on-year increase in financing through issuance of government bonds, reaching a record high. In 2024, net financing through issuance of government bonds reached 11.3 trillion yuan, marking the highest level on record for the same period, with an increase of 1.69 trillion yuan year on year. Specifically, net financing through treasury bonds stood at 4.5 trillion yuan, a year-on-year increase of 357.4 billion yuan; and net financing through local government bonds reached 6.79 trillion yuan, a year-on-year increase of 1.33 trillion yuan.

Third, financing through corporate bonds increased compared with the previous year. In 2024, net financing through corporate bonds amounted to 1.91 trillion yuan, a year-on-year increase of 283.9 billion yuan.

Fourth, trust loans, a form of off-balance-sheet financing, increased year on year. In 2024, trust loans increased by 397.6 billion yuan, a year-on-year increase of 240 billion yuan. In addition, entrusted loans and undiscounted bankers' acceptance bills decreased by 57.7 billion yuan and 329.5 billion yuan, respectively.

Overall, China's aggregate financing maintained reasonable growth in 2024, effectively supporting the recovery of the real economy. Thank you.

Shou Xiaoli:

The last question, please.

Securities Times:

The reform of foreign exchange business operations in banks has been rolled out for a year. Recently, regulations on due diligence and exemption from accountability in banks' foreign exchange business and reports on foreign exchange transaction risks have been released. What progress has been made in this regard so far? And what will the next steps be going forward? Thank you.

Li Bin:

Thank you for your interest in the foreign exchange business development of banks. In general, the banks' foreign exchange business development refers to activities such as customer identification, document review and risk monitoring that banks carry out while handling foreign exchange transactions for clients. To promote high-standard opening up and improve cross-border financial services, SAFE advanced the reform of banks' foreign exchange business operations in 2023. This initiative prioritized enterprise identification and strengthened post-event risk monitoring, changing the previous document-by-document review approach requirement in handling foreign exchange transactions. As a result, high-quality clients can be exempted from document review and banks can process foreign exchange transactions for them based on their instructions. This reform has both increased efficiency and prevented and controlled risk, bringing tangible convenience to businesses.

One year into the reform, banks have actively participated and people from all walks of life have given positive feedback. Currently, the number of participating banks has grown from the initial four to 16, with coverage gradually expanding nationwide. Based on market feedback and operational performance, the initial goal of reducing pressure on banks and alleviating burdens on enterprises has been achieved.

First, the reform has remarkably reduced the pressure on banks for in-process reviews. Banks no longer need to review each individual foreign exchange transaction for high-quality enterprises, greatly alleviating the burden of document review and shortening the average processing time by more than 50%. Thanks to the identification and classification of customer risk, banks can also innovate and customize various facilitation services for different clients, thereby meeting their needs in a more targeted manner.

Second, the reform has further expanded the scope of facilitation policies to cover more enterprises. At present, 18,000 high-quality clients, including small- and medium-sized enterprises, private enterprises and foreign-funded enterprises, have been included in the initiative. These businesses have conducted cross-border receipt and payment transactions exceeding $260 billion, further improving the turnover efficiency of business capital.

Third, the reform has effectively improved the quality and efficiency of risk prevention and control. Following the reform, banks can rely on more solid customer identification and classification measures, focusing more of their review efforts on high-risk customers and business. At the same time, the post-event monitoring system enables comprehensive and timely review of cross-border transactions, ensuring early identification, early warning and early handling of unusual activities.

The reform of foreign exchange business operations in banks is a fundamental and systematic task that we have been focusing on in recent years. Recently, we have introduced three supporting regulatory documents, including regulations on due diligence and exemption from accountability in banks' foreign exchange business and on foreign exchange transaction risk reports. Additionally, we have guided China Foreign Exchange Market Self-Regulatory Framework to issue three industry guidelines, further refining operational guidance for banks and promoting standardized and efficient implementation of the reform.

Moving forward, SAFE will adhere to the principle of pursuing progress while ensuring stability, steadily improving and expanding the development and reform of foreign exchange business operations in banks. First, we will organize the expansion in an orderly manner. We will guide banks that voluntarily participate in the reform to accelerate launching their programs as soon as conditions permit, and encourage those already implementing the reform to gradually extend it to more branches, in order to benefit more enterprises. Second, we will support banks in establishing and improving post-event monitoring systems, fully leveraging technological advancements to enhance their ability to detect risks early and ensure that no risks arise. Third, we will strengthen promotion, interpretation and training related to the newly issued supporting regulations, especially ensuring the smooth and effective implementation of the regulations on due diligence and exemption from accountability in banks' foreign exchange business. Thank you.

Shou Xiaoli:

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

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

Read in Chinese

Speakers:

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

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

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:

Jan. 13, 2025

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 "High-Quality Development Achievements of China's Economy." Today, we have invited Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC), to brief you on China's import and export performance in 2024, and to answer your questions. Also present today 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. Wang for his introduction.

Wang Lingjun:

Thank you, Ms. Xing. Friends from the media, happy new year. Welcome to today's press conference. I would like to express my utmost gratitude to you for your long-term interest in and support for China's customs work.

Let me begin with a customs declaration form — the last of the 88.38 million forms processed in 2024. This form was for a batch of translation earbuds shipped from Shenzhen to Japan. While the shipment's value was modest, it marked the successful conclusion of China's foreign trade in 2024.

In 2024, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, China's foreign trade achieved remarkable results, securing increases in total volume and increment, as well as improvements in quality. In terms of total volume, we consecutively surpassed the 42 trillion yuan ($5.74 trillion) and 43 trillion yuan thresholds. Last year, the total value of imports and exports set a record high of 43.85 trillion yuan, up 5% year on year. China's position as the world's largest trader of goods has been even further strengthened. China has become a major trading partner for more than 150 countries and regions, with its circle of friends in foreign trade getting larger. In terms of increment, China's foreign trade grew by 2.1 trillion yuan in 2024 — equivalent to the total annual foreign trade volume of a mid-sized country. Currently, our foreign trade growth rate also remains one of the fastest among the world's major economies. In terms of quality, the structure of imports and exports was continuously improved and upgraded. Exports of high-tech products showed strong momentum and of independently branded goods reached record highs, while new forms of trade such as cross-border e-commerce flourished.

These achievements did not come easily. In 2024, China's foreign trade grew steadily and its quality improved. This progress was fundamentally ensured by the centralized, unified leadership of the CPC Central Committee, who fully assessed the situation and implemented a suite of incremental policies in a timely manner, adopting a full range of policies to stabilize and promote foreign trade growth. At the same time, these accomplishments would not have been possible without the collaborative efforts of all localities and departments, as well as the hard work of thousands upon thousands of foreign trade practitioners.

Customs authorities have been not only observers and recorders of China's foreign trade development, but also active participants and enablers. In 2024, China's customs departments supervised 5.603 billion metric tons of imported and exported goods, and 39.917 million vehicle crossings. Facing the huge flow of people and goods, we have remained committed to our most basic and important responsibility of safeguarding the national border. Through the Smart Customs initiative, we have built a modern regulatory framework, intercepting epidemics and diseases, prohibited items, and substandard goods at the border. By firmly upholding the safety bottom line and regulatory red line, we have safeguarded national and public interests, ensuring high-quality development with high-level security.

We have kept in mind the primary importance of high-quality development in the new era, introducing and implementing 16 measures for enterprises to facilitate customs clearance in a bid to further improve the business environment at ports. Moreover, we have introduced hundreds of measures to support coordinated regional development strategies, such as the full revitalization of Northeast China, the efforts to accelerate the rise of the central region, and the efforts to make further progress in the large-scale development of the western region in the new era. By doing so, we aim to enhance the combined effect of the policies. We have launched special initiatives in 20 cities to facilitate cross-border trade, aiming at fostering a market-oriented, law-based, international and world-class business environment at ports. We have deepened innovation of customs supervision systems, and fully supported innovative development of various open platforms such as the Hainan Free Trade Port and the Hainan Pilot Free Trade Zone, with the aim of promoting high-quality development through high-level opening up.

Going forward, we will act in accordance with the guidelines of the Central Economic Work Conference, pursuing progress while maintaining stability, and promoting stability through progress. We will work diligently and proactively to accelerate the development of intelligent customs and carry out the "Smart Customs, Strong Nation" initiative. We will promote reform with greater force, ensure safety with stricter supervision, stabilize foreign trade with more practical measures, and promote opening up with higher standards. We will bear the duty of safeguarding borders and promoting development, reassuring the Party and satisfying the needs of the people.

That concludes my introduction. Now, my colleagues and I are happy to take your questions. Thank you.

Xing Huina:

The floor is now open for questions. Please identify the media outlet you represent before asking your question.

China Media Group:

The year 2024 was crucial for China in achieving the goals and tasks outlined in the 14th Five-Year Plan (2021-2025). You mentioned earlier that China's foreign trade last year saw substantial growth in volume, rate and quality. Could you please elaborate on the features and achievements in the high-quality development of China's foreign trade? Thank you.

Wang Lingjun:

Thank you for your question. High quality requires both quantity and quality. First, let's begin with quantity. Our total import and export value, as I mentioned earlier, reached 43.85 trillion yuan last year, marking a 5% increase. This represents a remarkable expansion of 11.63 trillion yuan compared to 2020, the final year of the 13th Five-Year Plan (2016-2020). This increase surpasses the cumulative growth achieved during the entire 13th Five-Year Plan period by a factor of 1.5. According to the latest data from the World Trade Organization (WTO), China's share of the global export and import markets reached 14.5% and 10.5%, respectively, in the first three quarters of last year. This signifies year-on-year increases of 0.3 percentage point and 0.1 percentage point, respectively. These figures reinforce China's position as the world's largest goods trader.

Then, in terms of quality, China's foreign trade exhibits four key characteristics:

First, the structure has improved. The structure of China's export products continues to be optimized and upgraded. Last year, exports of mechanical and electrical products surged by 8.7%, increasing their share of total exports by 0.9 percentage point to 59.4%. Notably, high-end equipment exports within this sector demonstrated robust growth, exceeding 40%. Imported products have shown increased diversity and effectiveness. Imports of mechanical and electrical products rose by 7.3%, while bulk commodity imports increased by 5%. Notably, the proportion of energy and mineral products imported from Belt and Road partner countries increased by 0.3 percentage point.

Second, the "new" elements in foreign trade have become more prominent. In 2024, China witnessed a surge in the emergence of new products, new business formats and new brands. This substantially increased the presence of "new elements" in foreign trade. Increased exports of high-tech products, such as electric vehicles, 3D printers and industrial robots, demonstrated robust growth, achieving impressive year-on-year increases of 13.1%, 32.8% and 45.2%, respectively. The annual import and export value through new cross-border e-commerce business formats reached 2.63 trillion yuan, surpassing the 2020 figure by 1 trillion yuan. Independent brands have garnered significant global attention, with their share of China's total exports increasing by 0.8 percentage point year on year to 21.8%. Notably, domestic fashion brands have successfully cultivated a unique "Chinese style" that has resonated with global consumers.

Third, the role of business entities has been significantly strengthened. In 2024, nearly 700,000 business entities in China engaged in import and export activities, setting a new record. The GACC hosted the 6th World Customs Organization (WCO) Global Authorized Economic Operator (AEO) Conference in Shenzhen last year. This event catalyzed a surge in foreign trade companies seeking AEO certification, a globally recognized "major brand" of trade facilitation. By the end of 2024, the number of companies with AEO qualifications reached 6,338 in China, a substantial increase of 612 compared to the end of 2023.

Fourth, we have forged trade ties with a wider range of partners across the globe. In 2024, China engaged in trade with nearly all nations and regions listed on the U.N. statistical classification. Compared to 2023, we established trade ties with one new export partner and four new import partners, achieving significant growth in both imports and exports through trade with over 160 partners.

To sum up, China's foreign trade achieved significant progress in 2024, with both reasonable growth in quantity and a marked improvement in quality, truly representing high-quality development. Thank you.

Dazhong Daily:

The efficiency of customs clearance is a major concern for foreign trade enterprises, and is also one of the main forces propelling stable growth in foreign trade. Could you please outline the efforts the GACC has undertaken in this regard? And what new measures will the GACC take this year to further simplify customs clearance? Thank you.

Wang Lingjun:

Thank you for your questions. I would like to invite my colleague Mr. Lin to answer.

Lin Shaobin:

Thank you for your questions. Convenience is efficiency, and efficiency is money. Every minute and cent saved in customs clearance adds strength and momentum to the development of foreign trade enterprises. We have always adhered to the principle of "responding to the needs of enterprises," continuously promoting innovation in customs supervision services, and striving to create a safe, convenient and efficient customs clearance environment. The facilitation measures for customs clearance can be summarized in three words: excellent, simple and fast.

"Excellent" refers to optimized processes and services. We have continuously optimized the reform of import and export customs clearance models, implemented a "green channel" for fast clearance, and facilitated enterprises to accelerate their import and export processes. For example, in Guangdong province, we have implemented the "Greater Bay Area (GBA) Combined Port" and the "GBA One Port" convenient customs clearance models, optimizing connections of multiple links such as customs clearance and port allocation. We have achieved uninterrupted year-round circulation and 24/7 direct loading of import and export goods transferred between hub ports and feeder ports. The main import procedures have been reduced from 11 to eight, and the main export procedures from 14 to 10. According to our calculations, the average goods storage period has been shortened to within two days from the previous five to seven days. For low-risk compliant goods, the entire process from declaration to release can now be done online, essentially achieving clearance in seconds.

"Simple" refers to simplified documents and procedures. We have actively promoted the substantial simplification of regulatory certificates required for import and export procedures, and have basically achieved online verification. In accordance with one-stop government services, we have implemented several reforms. For example, Qingdao Customs has combined tax-related and inspection-related testing, improving the clearance efficiency of imported fuel oil and increasing the turnover capacity of oil storage tanks by more than 30%. We have also continuously simplified business processes, with companies now able to enjoy one-stop customs clearance through the single window system for international trade. Recently, we also removed filing procedures for overseas warehouses in cross-border e-commerce. Enterprises now only need to complete the customs declaration entity filing and the cross-border e-commerce enterprise filling to immediately start operations. In short, we are striving to simplify wherever possible and simplify as much as possible, with the goal of making customs clearance for businesses as easy as possible.

"Fast" refers to quick operation and checking. The convenience of customs clearance ultimately depends on how fast it is. We have implemented the remote on-site inspection reform through smart customs pilot program. By using video connections to conduct remote inspections, we can reduce the inspection time per shipment by 90%. We have implemented a control and inspection model for high-tech goods such as vacuum packaging, which can reduce customs clearance time for enterprises by 80%. We have implemented pilot reforms such as "smart inspection and quarantine" and "release before inspection" for imported bulk mineral products and crude oil. For example, Zhanjiang Customs has adopted the "smart inspection and quarantine" model for imported iron ore, reducing the clearance time for each batch by 15 hours and reducing the workload requiring company cooperation by more than 95%. We have also conducted destination inspection pilot programs for imported rail-transported copper concentrate at Urumqi and Lanzhou customs, reducing the clearance time from the original 150-200 hours to less than 30 hours.

There is no end to the work improving customs clearance facilitation. We are well aware of this, and so will continue to organize and promote specialized campaigns to facilitate cross-border trade. We are also planning to introduce specific policies and measures to facilitate customs clearance at airports. In summary, we aim to help foreign trade enterprises save time, money and labor, and reduce their concerns, during customs clearance.

Thank you.

The Beijing News:

In recent years, China has made a series of arrangements for coordinated regional development. The Central Economic Work Conference also included strengthening the implementation of regional strategies and boosting regional development vitality as a key task. How have the various regions across China performed in terms of imports and exports last year? And what role did each region play in stabilizing the country's foreign trade? Thank you.

Wang Lingjun:

Last year, the imports and exports in various major regions of our country achieved balanced and prosperous development. I would like to invite Mr. Lyu to answer your questions.

Lyu Daliang:

Thank you for your questions. Since this is our first meeting of the year, I would like to start by wishing all friends from the media a Happy New Year.

In 2024, China's foreign trade quality improved and the volume stabilized through the coordinated efforts and hard work of the whole country. The eastern, central, western and northeastern regions complemented each other's advantages and exhibited their strengths, achieving growth in both imports and exports.

The eastern region continued to play its role as the "ballast." The total foreign trade volume for the year was 34.95 trillion yuan, an increase of 5.4%, accounting for 79.7% of the country's total import and export value. The region alone imported over 85% of the nation's crude oil and consumer goods, and exported more than 80% of labor-intensive products, household appliances and lithium batteries. The integrated development of the Guangdong-Hong Kong-Macao GBA has been continuously accelerating, with imports and exports in the nine mainland cities of the GBA growing by 10.1%, contributing 1.9 percentage points to the growth in national foreign trade. The eastern region also led in the development of the marine economy, with ship exports increasing by 60.8% and offshore drilling platform exports increasing by 1.2 times, both accounting for more than 90% of the national total in these categories.

The western and central regions are also increasingly becoming an open frontier. In 2024, imports and exports reached 7.65 trillion yuan, an increase of 4%. These regions are actively undertaking industrial transfers in an orderly manner, and continuously achieving open development. The proportion of processing trade in the total import and export value has reached 25.5%, which is 7.4 percentage points higher than the national average. More international elements are becoming a part of daily life in the inland regions. Tripe from New Zealand and catfish from Vietnam, transported via the cold chain route along the New International Land-Sea Trade Corridor, have made it onto our hotpot menus. Thai durians and Laotian bananas, imported via the China-Laos Railway, have enriched people's fruit options.

The openness of the northeast region has also further improved. Its foreign trade volume reached a new high for the fourth consecutive year in 2024, totaling 1.25 trillion yuan, an increase of 1.6%. Exports increased by 8.1%, outpacing the national export growth by 1 percentage point. The industrial advantages of the old industrial base in Northeast China, which has strong production and research and development capabilities, have been further leveraged, with engineering machinery exports increasing by 10.5%, household appliances by 14.4% and electrical control devices by 9%. Notably, the ice and snow economy industry in the northeast region continues to develop, with exports of ski boots, ski clothing and snowboards to Germany, Italy and the Netherlands growing exponentially, adding new highlights to China's foreign trade. Thank you.

Nanfang Daily:

Could you please introduce the import situation? We have noticed that imports were weaker than exports in the second half of last year. What were the main reasons for this? Is it related to insufficient domestic demand? The Central Economic Work Conference has prioritized "expanding domestic demand on all fronts" asthe top priority among itsnine key tasks for 2025. What are your expectations for the country's imports? Thank you.

Wang Lingjun:

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

Lyu Daliang:

Thank you for your interest in the import situation. In 2024, China imported goods worth 18.39 trillion yuan, an increase of 2.3%. According to the latest data from the WTO, as of the first three quarters of last year, China's import growth rate was 1 percentage point higher than the global rate, and it is expected to continue to maintain its position as the second-largest importing country for the entire year.

Imports not only play an important role in the operation of the domestic economy, but also drive the joint development of related countries. Domestically, China's import demand has steadily increased and the scale has continued to expand, not only meeting the needs of domestic production but also enriching consumer choices. In 2024, China's domestic industrial production was stable and rising, with imports of electronic components increasing by 10.1%, semiconductor manufacturing equipment by 21%, and computer parts by 62.6%. In terms of bulk commodities, measured by volume, iron ore imports grew by 4.9%, natural gas by 9.9% and coal by 14.4%. Meanwhile, China's consumer market grew steadily, with robust demand for imports of many consumer goods, such as a 5.6% increase in clothing, 8.6% in fruits and 38.8% in wine.

Last month, in December, due to the upcoming New Year's Day and Spring Festival, China imported consumer goods worth 167.82 billion yuan, reaching a 21-month high, with year-on-year and month-on-month increases of 3.9% and 14.4%, respectively.

Internationally, China has expanded its autonomous and unilateral opening-up in an orderly manner, continuously unleashing the potential of its vast market scale, not only bringing fresh impetus to high-quality foreign trade development but also providing more opportunities for countries around the world to share in the Chinese market. In 2024, imports from Belt and Road partner countries totaled 9.86 trillion yuan, an increase of 2.7%, accounting for 53.6% of the total import value. On Dec. 1, 2024, China granted zero-tariff treatment to all products from all least developed countries with which it has diplomatic relations, leading to an 18.1% increase in imports from these countries for the month, accelerating by 5.8 percentage points compared to the first 11 months.

Regarding the import performance in the second half of last year, we believe it resulted from the combined influence of multiple factors. Among them, the impact of international commodity prices was particularly evident. In the second half of last year, the import prices of major commodities in China showed varying degrees of decline, with the prices of crude oil and iron ore dropping by 9% and 16.7%, respectively. These fluctuations are reflected in the growth rate of imports. In addition, some countries have politicized economic and trade issues, misused export control measures and unjustifiably restricted the export of certain products to China. Without these restrictions, our imports would have been higher.

Regarding imports this year, we believe there is considerable potential for growth. This is not only due to the large capacity and diverse levels of our market, which holds immense potential, but more importantly, we have actively and proactively expanded imports to share the opportunities arising from China's development with the world. By 2030, total imports from developing countries alone are expected to exceed $8 trillion. We believe that with the comprehensive expansion of domestic demand and the orderly advancement of independent and unilateral opening up, China's vast market will undoubtedly offer greater opportunities and more choices to the world.

Thank you.

21st Century Business Herald:

We have noticed that China's foreign trade "circle of friends" has been expanding in recent years. Could you share the key highlights of China's foreign trade with its various trade partners in 2024? Thank you.

Wang Lingjun:

Thank you for your question. China advocates for a universally beneficial and inclusive economic globalization, maintaining trade partnerships all around the world. As I mentioned earlier, we are a primary trade partner for over 150 countries and regions worldwide, ranking among the top three. Moreover, this number continues to rise. Last year, our foreign trade performed remarkably well with both old partners and new friends. These highlights include:

The proportion of China's imports and exports with Belt and Road partner countries exceeded 50% for the first time. Last year, China's imports and exports with Belt and Road partner countries grew by 6.4%, making up 50.3% of its total import and export value. Among them, exports increased by 9.6% and imports increased by 2.7%. Along the Belt and Road, a path to global well-being, "Made in China" effectively aligns with the production and consumption needs of Belt and Road partner countries, while their high-quality specialty products continuously flow into the Chinese market. It is worth mentioning that the China-Europe Railway Express surpassed 100,000 trips last year. The train from Chongqing to Duisburg, Germany, on Nov. 15, 2024, was the 100,000th. This "fleet of steel camels" in the new era has created a new chapter in the Silk Road.

Most of the trade volume came from emerging markets, including ASEAN. China has continuously promoted East Asian cooperation and regional economic integration, and strengthened industrial chain cooperation with ASEAN, maintaining import and export growth with ASEAN for nine consecutive years, and being each other's largest trading partner for five years in a row. The BRICS cooperation mechanism has continued to grow, with China's imports and exports to other BRICS member countries and partner countries rising by 5.5%. Additionally, China has continued to strengthen economic and trade cooperation with Latin America, Africa, the five countries of Central Asia, and Central and Eastern Europe, with imports and exports increasing by 7.2%, 6.1%, 7.2% and 7.5%, respectively. The contribution of the above-mentioned markets to the growth of China's foreign trade reached nearly 60%, making them a key driving force behind the growth of China's foreign trade.

Traditional markets such as the EU and the U.S. also continued to grow. The EU is China's largest source of consumer goods imports and the largest export market for our mechanical and electrical products. The economic and trade ties between the two sides are close, continuously strengthening the bonds of a China-EU community of shared interests. In 2024, bilateral trade grew by 1.6%, with trade with France, Spain and Hungary increasing by 2%, 4.5% and 12.9%, respectively. During the same period, trade between China and the U.S. grew by 4.9%, roughly in line with our overall trade growth rate. We imported agricultural products, energy products, pharmaceuticals and aircraft from the U.S., and exported clothing, consumer electronics and household appliances to the U.S., achieving mutual benefits. Thank you.

Elephant News:

We have noted that last month, the GACC introduced 16 measures to further optimize the business environment at ports and facilitate customs clearance for enterprises. Could you please introduce the key points of these measures? And what new measures will the GACC introduce this year to stabilize foreign trade in accordance with the guiding principles of the Central Economic Work Conference? Thank you.

Wang Lingjun:

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

Lin Shaobin:

Thank you for your questions. In 2024, the giant ship of China's foreign trade sailed ahead against all winds and waves, thanks to the strong impetus provided by the policies. From the timely introduction of incremental policies, such as several measures to promote steady growth in foreign trade, to the combined effects of various existing policies, the benefits of policies have been continuously released. These high-quality policies have injected strong momentum into the growth of foreign trade. Just now, the reporter mentioned that the GACC previously introduced 16 measures to further optimize the business environment at ports and facilitate customs clearance for enterprises, with the aim of creating joint efforts to promote steady growth in foreign trade.

In order to introduce the 16 measures, we made a lot of preparations and conducted extensive field research. We went into factories and workshops, listened to the requirements of enterprises, asked about their difficulties, and strived to ensure that the policies and measures can address the pains, difficulties and bottlenecks of enterprises. Overall, these measures focus on the three following aspects. Here, I would like to briefly introduce them.

First, these policies focus on fostering new forms of business. We have optimized the regulatory model for cross-border e-commerce, developed new forms of business of "bonded plus," such as bonded repair and bonded remanufacturing, vigorously supported the healthy and well-regulated development of border trade, further increased the trade volume, and expanded the overall scale of foreign trade.

Second, these policies focus on building new strengths. We have optimized the reform of the customs clearance model for imported goods, with a focus on ensuring the import of energy and mineral products as well as food and agricultural products, and have further facilitated the expansion of exporting products such as automobiles. As such, the customs clearance of these goods, which account for a significant portion of our foreign trade volume, can be more efficient. In this way, the time and costs saved can be translated into a competitive edge for import and export enterprises, thereby stabilizing foreign trade.

Third, these policies focus on stimulating new vitality. We have further extended the list of facilitation measures for AEOs, prioritizing exclusive benefits such as fast-track customs clearance and priority inspections for AEOs. We have expanded the scope of application for voluntary disclosure policies, helped enterprises make good and full use of favorable taxation policies, and made every effort to help foreign trade enterprises enhance their capabilities and stabilize their expectations.

The Central Economic Work Conference has made clear arrangements for expanding high-standard opening up and maintaining the stability of foreign trade and foreign investment. Next, customs will further take firmly stabilizing foreign trade as the priority and fully stimulate the power for making progress. In terms of stabilizing foreign trade, we will boost efforts to ensure the implementation and track the effectiveness of existing policies and measures. Focusing on the pains, difficulties and bottlenecks of enterprises, we will introduce more targeted measures to stabilize foreign trade at an appropriate time. In terms of driving progress, we will continue to comprehensively deepen customs reforms, fully unleash development potential, introduce a new round of measures to support the high-quality development of comprehensive bonded zones, launch customs measures for regulating the Hainan Free Trade Port, and implement a three-year special action for the inspection and admission of food and agricultural products from Belt and Road partner countries, continuously providing inexhaustible power to drive forward the giant ship of China's foreign trade.

Thank you.

Bloomberg News:

CCTV is reporting that exports rose 7.1% to 25.5 trillion yuan last year, creating a record 7 trillion yuan surplus. Can you confirm those numbers? Why is the growth in exports and imports so different? Are you concerned that this growing, and frankly quite large trade surplus, is creating trade protectionism? And do you think exports and the surplus will grow again this year? Thank you.

Wang Lingjun:

Thank you for your questions. I actually touched on this topic at the press conference on China's import and export performance in the third quarter on Oct. 14 last year. I want to stress a few things: First, China does not pursue a trade surplus. The specific export and import volume and trade gap is caused by comprehensive factors such as the international supply-demand relationship, industrial division of labor and market competition. It is not by design. Second, China's trade surplus as a percentage of GDP is within a reasonable range, significantly lower than its record high, and also lower than some other major exporting countries in the world. Third, some countries abuse export controls and restrict exports to China. We want to import and even want to import more, but you do not let us. Yet, you are overly anxious about the trade surplus. That in itself is a self-contradiction.

Here I would like to add that China has been actively expanding imports. It has held the China International Import Expo (CIIE) for seven consecutive years, unilaterally opened its door wider to other countries, expanded market access in an orderly manner, proactively lowered tariff levels, and continuously set new records for the value of imports. This has allowed more countries and more enterprises to share the opportunities and development achievements of the Chinese market, and has also promoted more balanced development of China's trade.

In response to rising protectionism, the WTO pointed out in its World Trade Report 2024 that rising protectionism will harm the growth prospects of all economies. Regardless of changes in the external environment, China will firmly expand opening up and resolutely oppose trade protectionism. With a renewed commitment to win-win cooperation and the determination to open up and through practical measures, China will build bridges of communication, and share opportunities of development, discuss cooperation and promote development with other countries. Thank you.

National Business Daily:

We have noticed some suggestions that the recent export growth rate, which is higher than the seasonal growth forecast, is mainly due to an expected increase of tariff. What are your views on this opinion? What is your evaluation of the export performance for the entire year of 2024? And what are the prospects for exports this year? Thank you.

Lyu Daliang:

Thank you to this journalist for the questions. The three questions you asked pertain to last year's export performance, this year's export situation, and the so-called "rush to export" issue that has attracted widespread attention.

Let me begin by presenting the export situation over the course of last year. In 2024, China's exports surpassed 25 trillion yuan for the first time, reaching 25.45 trillion yuan, which represents a year-on-year increase of 7.1%. This growth has been sustained for eight consecutive years, demonstrating strong momentum and vitality. Specifically, there are three notable characteristics:

First, there is a wide variety of products. China is the world's largest manufacturing hub and the foremost exporter of manufactured goods. In 2024, the manufacturing sector represented 98.9% of our country's total exports. Exports from the equipment manufacturing sector reached 14.69 trillion yuan, while consumer goods manufacturing exports totaled 5.43 trillion yuan, and raw materials manufacturing exports amounted to 3.12 trillion yuan. We are now capable of producing a wide range of items, from large-scale ocean engineering equipment to smaller products like the translation earphones listed in the last customs declaration form we just showed. Our products are of reliable quality and fully meet the production and consumption demands of the international market.

Second, the transformation of growth drivers has been rapid. In recent years, we have been able to meet the needs of the international market, offering a range of products from epidemic prevention supplies to items for the "stay-at-home economy," and now expanding into the "new trio," namely, electric vehicles, lithium-ion batteries, and photovoltaic products. This success is primarily attributed to our well-established and continuously upgraded production and supply chain. Innovative, high-quality and competitive Chinese manufacturing and creativity are continually emerging, facilitating an orderly transformation of drivers and sustained boost in export growth. In 2024, our country's exports of integrated circuits increased by 18.7%, flat panel display modules rose by 18.1%, and ships and marine engineering equipment surged by 60.1%.

Third, there is a broad scope for market expansion. In 2024, our country's exports to over 160 countries and regions increased, with overall growth of 9.6% to BRI countries, 13.4% to ASEAN, 23.3% to Brazil, 19.2% to the UAE, and 18.2% to Saudi Arabia. Furthermore, exports to traditional markets such as the European Union and the United States grew by 4.3% and 6.1%, respectively.

Regarding the recent acceleration in export growth, it's clear that there has been an uptick. In the fourth quarter of last year, exports grew by 9.2%, accelerating by 2.9 percentage points compared to the first three quarters. We believe this not only reflects a continuation of the long-term positive trend but also demonstrates the effectiveness of our implemented policies. In particular, during its meeting on Sept. 26, the Political Bureau of the CPC Central Committee introduced a package of coordinated incremental and existing policies. These measures have consistently generated positive effects and offered stronger support for exports.

At the same time, that is due to factors that some companies have adjusted their export schedules. According to feedback from companies, several factors have disrupted normal production and business activities, including scheduling delays of fleet following the typhoon last September, the earlier Spring Festival holiday this year compared to last year, and the potential escalation of trade protectionism.

Regarding this year's export trends, there are indeed growing external challenges and uncertainties. However, as I just mentioned, our country's exports are characterized by a wide range of products, flexible transformation of growth drivers and stable, diverse markets. We can be certain that our exports will continue to demonstrate resilience and vitality. Thank you.

The New York Times:

The U.S. government claims that there is an issue of overcapacity in Chinese exports. What is China's position on this matter?

Wang Lingjun:

Thank you for your question. The so-called "overcapacity" issue has been addressed multiple times by relevant departments, including the customs authorities. Whether viewed from the perspective of comparative advantage or global market demand, the so-called "China overcapacity" issue does not exist; this claim is pure fallacy.

As noted earlier, Chinese products have gained widespread popularity in the global market, underpinned by a complete and continually upgrading industrial system, along with sustained investments in research and innovation. We have ensured the stability of the global production and supply chain through our comprehensive manufacturing industry chain, which drives technological progress and industrial upgrades worldwide. This is both evident and undeniable.

Some countries repeatedly overstate this issue, which is essentially an attempt to suppress and contain China's development. In essence, it represents a form of protectionism that severely undermines global industrial cooperation and the stability of production and supply chains. Adhering to open cooperation and mutual benefit is the correct approach for global economic development.

Thank you.

China Financial and Economic News:

At the end of 2023, the Central Economic Work Conference called for an acceleration in the development of new drivers for foreign trade. How have these new drivers performed over the past year? Thank you.

Wang Lingjun:

That is a good question. Without new drivers, new development cannot occur. It can be said that last year, China's foreign trade reached two new trillion-yuan-level milestones, thanks in large part to the significant driving force of this new momentum. I'd like to invite Mr. Lyu to elaborate on this topic.

Lyu Daliang:

Thank you for your question. In 2024, the scale of our country's foreign trade, in terms of imports and exports, reached a new historical high. A continuous influx of new momentum has injected powerful energy into the development of China's foreign trade.

Our green trade leads the world. China's green products have not only boosted global supply but also made significant contributions to international efforts in combating climate change and facilitating the transition to a green, low-carbon economy. In the field of green energy, China's wind turbine exports surged by 71.9% in 2024. Photovoltaic product exports have exceeded 200 billion yuan for four consecutive years, while lithium battery exports reached a record high of 3.91 billion units. In the field of green transportation, China's export volume of electric locomotives has risen for five consecutive years. Electric motorcycles and bicycles have gained popularity in overseas markets, with export values surpassing 40 billion yuan for the first time. Additionally, the export volume of electric vehicles has exceeded 2 million units for the first time. As the saying goes, "All roads lead to Rome." If these cars were lined up end to end, they could stretch from Beijing to Rome.

Our digital trade is also booming. According to international classification, digital trade is categorized into digitally ordered trade and digitally delivered trade. Customs primarily regulate digitally ordered trade, commonly known as cross-border e-commerce. According to preliminary statistics, China's cross-border e-commerce imports and exports reached 2.63 trillion yuan in 2024, an increase of 10.8%. Cross-border e-commerce is further unlocking its potential in "selling globally," while also continuing to leverage its advantages in "buying globally."

In addition, a higher level of opening-up has played a significant role. Comprehensive bonded zones are special customs-supervised areas in China characterized by the highest level of openness, the most concentrated preferential policies, and the most comprehensive functions. Currently, there are 167 comprehensive bonded zones spread across 31 provinces, autonomous regions and municipalities in China. These zones play a crucial role in promoting institutional openness as well as facilitating industrial transformation and upgrading. In 2024, the total imports and exports of the comprehensive bonded zones reached 6.7 trillion yuan, marking an increase of 4.7%. In other words, each area, roughly the size of a soccer field, generated over 100 million yuan in imports and exports on average.

Pilot free trade zones have effectively served as a comprehensive experimental platform for reform and opening-up, achieving a total import and export value of 8.45 trillion yuan, an increase of 10.3%. The construction of Hainan Free Trade Port is progressing steadily, with total annual imports and exports reaching 277.65 billion yuan, marking an increase of 20%. Since the implementation of separate line management policies in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, the Hengqin Port at the "first line" has been bustling with activity, effectively facilitating Hengqin-Macao integration.

That's all I would like to say for now. Thank you.

Changjiang Daily:

We have observed that in recent years, customs authorities have prioritized innovation in regulatory systems, receiving praise from various sectors of society. Particularly since last year, the development of smart customs has been actively promoted, creating a safer, more convenient, and efficient customs clearance environment that better supports the stable growth of foreign trade. May I ask how the construction of smart customs is progressing? What are the priority tasks moving forward?

Lin Shaobin:

Thank you, especially for your attention to the work on customs reform and innovation.

Last year's government work report identified the construction of smart customs as a key priority. For the customs system, this is both an honorable and challenging undertaking, directly related to the modernization of China's customs and its contribution to the country's path to modernization. For over a year, we have prioritized the construction of smart customs as a key focus for further deepening all-round reform and as a driving force to promote stable growth in foreign trade. We have made significant strides in digital transformation and intelligent upgrades, striving to leverage the intelligence of smart customs to support the strength of national development.

First, we have improved intelligent infrastructure. By relying on flagship projects, we have improved digital and intelligent infrastructure, further enhancing the digital governance capabilities and standards of customs. For example, our big data pool continues to grow, currently housing over 260 billion pieces of diverse data. This provides robust support for enhancing regulation and optimizing services. In addition, our inventory of intelligent equipment continues to expand, featuring over 40 types of devices and facilities, such as smart individual unit system and smart inspection stations. These have been increasingly utilized in inspection and quarantine, passenger clearance, and other areas, playing a crucial role in preventing invasive species and combating smuggling.

Second, the GACC has enhanced the application of intelligent methods. We take a combined approach to development and application to better fulfill our responsibilities in safeguarding our borders and promoting growth. For example, by utilizing a portable AI-based wood identification system, we can instantly identify hundreds of wood species and insects, with intelligent preliminary screening completed in just 10 minutes. We have also adopted traceability code technology in innovative ways to strengthen the enforcement of Hainan's offshore duty-free policies and effectively crack down on smuggling of duty free goods by "purchasing agents." In addition, we have leveraged digital and intelligent technologies to empower the financial sector and facilitate foreign trade. Preliminary data indicates that since 2023, the GACC has provided streamlined international settlement and financing services to over 220,000 foreign trade enterprises.

Third, the GACC has accelerated the implementation of intelligent projects. The GACC has advanced the rapid implementation of proven projects and functions across various customs-related fields and business sites. This effort aims to deliver tangible benefits to both enterprises and the public, genuinely improving their sense of fulfillment and effectively improving their overall experience. For example, the intelligent supervision system for iron ore enables real-time online detection, intelligent analysis, and handling, significantly reducing cargo clearance times and lowering costs related to ship berthing and port stays. The GACC has reformed its non-trading duty collection models and upgraded its related operational systems. It has also implemented a fully digital process for collecting, paying, and refunding duties on luggage and mail items, allowing travelers to complete customs clearance within seconds after paying duties via a mobile scan.

This year, the GACC will focus on integrating projects under the Smart Customs initiative. It will optimize and reengineer customs supervision protocols and procedures through digital and intelligent methods while further applying AI and other technologies. The GACC will develop a new supervision model characterized by seamless customs clearance, intelligent oversight, minimal interruption, and comprehensive monitoring. This approach will help accelerate the modernization of China's customs sector and better fulfill its duty of safeguarding the country's borders while promoting development. Thank you.

Xing Huina:

Due to time constraints, we will have two more questions.

Kyodo News:

In 2024, China's steel exports approached historic highs, even as trade tensions with certain countries escalated. What is China's perspective on this situation?

Wang Lingjun:

I will give the floor to Mr. Lyu to answer your question.

Lyu Daliang:

What I want to convey is that China is a responsible major country and a committed member of the WTO. We have consistently engaged in mutually beneficial trade with various countries in strict accordance with WTO rules. The continuous innovation and upgrading of the country's steel industry are primarily aimed at meeting domestic demand, while also providing innovative and high-quality products to many other countries. At the press conference for the third quarter of last year, I also mentioned that China's ultra-thin stainless steel, known as "hand-tearable steel," represents an advanced standard in the industry. China's steel exports comply with market principles and WTO rules. However, certain countries have adopted protectionist measures against China's steel, which violate international trade rules and drive up downstream production costs. This has disrupted the stability of global industrial and supply chains and does not facilitate the resolution of their own issues or concerns. The customs authorities will focus on their responsibilities to effectively safeguard the legitimate rights and interests of Chinese enterprises.

Thank you.

Xing Huina:

We will have one last question.

Red Star News:

As mentioned earlier, last year, China's foreign trade experienced a rise in quality while maintaining stability in quantity. What factors are supporting the high-quality growth of the country's foreign trade? What is your forecast for the foreign trade trend in 2025? Thank you.

Wang Lingjun:

Thank you. This is a transitional question that connects the past with the future. In 2024, China navigated a complex and challenging external environment; nonetheless, its foreign trade achieved high-quality growth throughout the year, a feat that was not easily accomplished. This can be attributed to three factors.

First, policy coordination provided timely support for the development of high-quality foreign trade. In recent years, China has made continuous efforts to expand high-level openness, which has facilitated stable growth in foreign trade. While continuing to implement existing policies, last year, the Political Bureau of the CPC Central Committee decisively deployed a package of incremental policies and swiftly introduced a new round of measures to boost stable foreign trade growth. These measures significantly contributed to the foreign trade increase in the fourth quarter, reaching a record high of 11.51 trillion yuan, representing a 0.4 percentage point increase from the third quarter. Especially in December, the scale of imports and exports surpassed 4 trillion yuan for the first time, setting a new monthly record with the growth rate rising to 6.8%. This marked a successful conclusion to the year's foreign trade.

The upgraded version of "Made in China" and the expansive Chinese market are the driving forces behind the high-quality development of foreign trade. We have a complete industrial system, with scientific and technological innovations driving the continuous development of new quality productive forces. The iterative upgrading of Chinese manufacturing is providing our trade partners with more high-end, green and intelligent products. For example, our washing machines, equipped with the AI-powered "smart wash" function, can automatically detect the weight and fabric of the clothes to select the optimal washing mode. We also offer a smart cooking machine with a variety of built-in menus, enabling users to enjoy dishes that strike a perfect balance of color, aroma, taste and presentation within minutes of adding the ingredients and pressing a button. With this technology, anyone can cook like a star chef. How could smart home appliances like these not be popular? Smart home devices have revitalized the traditional home appliance industry, contributing to a 15.4% increase in China's home appliance exports compared to the previous year.

China continues to be the world's most promising market. Last year, China imported nearly 3 billion tons of bulk commodities, mechanical and electrical products worth over 7 trillion yuan, and consumer goods valued at nearly 1.8 trillion yuan, effectively meeting diverse production and consumption demands. At the same time, the doors of the Chinese market are opening wider, with an increasing number of cross-border personnel gaining easier access to enter and exit the country. This not only boosts consumption but also deepens international exchanges and cooperation, infusing vitality into international trade.

Business entities moving forward with determination have injected sustained momentum into the high-quality development of foreign trade. Just at the beginning, we noted that the last customs declaration form was submitted just before midnight on Dec. 31, 2024. This was one of more than 88 million forms submitted, each reflecting the efforts of foreign trade enterprises to overcome challenges and their dedication to hard work. It is the relentless efforts, innovative spirit, and diligent management of these enterprises that have solidified the foundation of foreign trade and further invigorated its development.

Currently, the external environment is becoming increasingly complex, characterized by growing uncertainties and instabilities. Geopolitical factors, unilateralism and protectionism pose significant challenges to the stable growth of foreign trade. At the same time, major international economic organizations predict that global goods trade will continue to grow this year. The fundamentals of China's economy — stable foundation, numerous advantages, strong resilience and significant potential — remain unchanged, and the supporting factors for promoting high-quality development in foreign trade continue to be solid. Looking ahead, customs will follow the directives of the Central Economic Work Conference, continuously improving regulatory efficiency and service levels to further promote the stable and long-term development of China's foreign trade. We will also regularly update the media on the latest developments. Thank you.

Xing Huina:

Today's press conference is hereby concluded. Please get in touch with us if you have any further questions. Thank you to Mr. Wang and the two speakers, and thank you to the media for your attention. Goodbye, everyone!

Translated and edited by Xu Xiaoxuan, Gong Yingchun, Liu Jianing, Liao Jiaxin, Mi Xingang, Xu Kailin, Wang Yiming, Wang Xingguang, Zhu Bochen, Zhang Tingting, Wang Wei, Wang Qian, Li Huiru, Zhang Rui, Li Xiao, Liu Sitong, Wang Yanfang, Jay Birbeck and David Ball. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Liao Min, 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

Chairperson:

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

Date:

Jan. 10, 2025

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 "High-Quality Development Achievements of China's Economy." Today, we have invited Mr. Liao Min, vice minister of finance, to brief you on relevant developments and answer your questions. Also attending today's press conference are Mr. Lin Zechang, director general of the Comprehensive Department of the Ministry of Finance (MOF); and Mr. Wang Jianfan, director general of the Budget Department of the MOF.

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

Liao Min:

Friends from the media, ladies and gentlemen, good afternoon. Thank you for attending today's press conference. And thank you all for your long-term interest in and support for our fiscal work. I would like to take this opportunity to brief you on the phased achievements of fiscal operations and policies in 2024, and the overall considerations for fiscal work in 2025.

In 2024, the finance departments, following the decisions and deployments of the Central Committee of the Communist Party of China (CPC) and the State Council, intensified existing and incremental policies to promote economic recovery and social stability.

First, the overall fiscal operation was stable and the budget was well implemented. September saw the implementation of a package of incremental policies and the stabilization of the macroeconomy. The growth rate of fiscal revenue turned positive for the month, improving month on month in October and November, while the data for December and the whole year is currently being compiled. In terms of expenditure, the finance departments strengthened resource coordination and maintained expenditure intensity. Key areas of expenditure have been well supported. Overall, a balance between revenue and expenditure can be achieved for the year.

Second, targeted policies were implemented, supporting the stable and healthy development of the economy and society. To promote consumption, in addition to implementing existing policies to support the building of commerce at the county level and other measures to expand domestic demand, we allocated 150 billion yuan ($20.62 billion) of ultra-long special treasury bonds in the second half of 2024 to support the trade-in of consumer goods. In particular, we increased subsidies for the scrapping and renewal of automobiles and trade-in of home appliances to ensure the discounts reach consumers directly. This is another good attempt to use large-scale central government funds for public consumption. In terms of expanding investment, three aspects need to be mentioned regarding bonds alone. Firstly, we issued a total of 4 trillion yuan of local government special bonds, including 3.9 trillion yuan newly issued in 2024 and 100 billion yuan carried over from 2023, with the scope of investment and project capital expanded. Secondly, we issued 1 trillion yuan of ultra-long special treasury bonds, of which 700 billion yuan was earmarked to support projects for implementing major national strategies and building security capacity in key areas. Thirdly, for the additional treasury bonds issued in 2023, most of the funds were used in 2024 to support post-disaster recovery and reconstruction, and to enhance disaster prevention and mitigation capabilities. In terms of ensuring people's livelihoods, we stepped up efforts to support low- and middle-income groups and special groups. For example, we raised the minimum monthly standards of basic pensions for urban and rural residents. The national scholarship and grant policies for college students were further improved and expanded, and living subsidies were also provided to people in difficulties. In terms of fostering new growth drivers, we vigorously supported technological innovation, promoted high-quality development of the manufacturing and modern service industries, accelerated the development of new quality productive forces, and facilitated industrial transformation and upgrading as well as the smooth transition between old and new growth drivers.

Third, we provided greater support for local governments to alleviate debt repayment pressure and enhance growth momentum. To support local debt risk resolution, we formulated and implemented the largest debt resolution package in recent years, with funds of 12 trillion yuan in total. Here is the latest update. The 2-trillion-yuan replacement quota for 2024 was fully issued on Dec. 18. The issuance of the 2-trillion-yuan replacement bonds for 2025 has already begun. This replacement policy has achieved three significant results. Firstly, local liquidity pressure was greatly alleviated during this period. The replacement policy helped to significantly reduce debt interest expenses, providing more room for local governments to support domestic demand. Secondly, debt transparency greatly increased. We officially announced for the first time that the hidden debt balance was 14.3 trillion yuan. The previous dual-track management of statutory debt and hidden debt has been gradually transitioned to the standardized and transparent management of all debts. The domestic and international communities, including major rating agencies and international organizations, have responded positively to these efforts. Thirdly, coordinated efforts were greatly enhanced to prevent risks while promoting development. With the systematic and holistic advancement of debt resolution efforts, local financial chains have been increasingly unimpeded, and development momentum has continuously strengthened. There has been a shift from the previous focus on risk prevention to a dual emphasis on risk prevention and development. Many areas have reported that with this timely policy, they have been less burdened and more motivated.

Regarding fiscal policies for 2024, I would also like to add that we have rolled out a package of incremental fiscal policies in order to implement the guiding principles of the meeting of the Political Bureau of the CPC Central Committee on Sept. 26. These policies mainly cover the following four aspects. First, increasing support for local governments to defuse debt risks. Second, issuing special treasury bonds to support major state-owned commercial banks in replenishing core tier-1 capital. Third, stepping up efforts to stabilize the property market and reverse its downturn. Fourth, increasing support and protection for key groups. At present, most of these policies have already been implemented, and there are two specific policy measures that are being actively advanced. One is the policy of using special bonds to support the acquisition of existing commercial housing for use as government-subsidized housing. We are working with relevant authorities to conduct research and refine measures. The other is the policy of issuing special treasury bonds to support major state-owned commercial banks in replenishing core tier-1 capital, enhancing their ability to serve the real economy. Currently, these banks are calculating and refining their plans to replenish capital, and we will expedite the implementation.

In 2025, the finance departments will implement a more proactive fiscal policy in accordance with the plans of the Central Economic Work Conference, continue to exert efforts and provide stronger support to effectively utilize the policies. This is an area in which many people are very interested. I can tell you that a more proactive fiscal policy can be expected in the future, which will mainly be reflected in three aspects — intensity, efficiency and seizing opportunities.

In terms of intensity, we will fully tap the potential of fiscal policy space, and strengthen counter-cyclical adjustments. We will raise the deficit-to-GDP ratio and increase the intensity of fiscal spending. We will increase transfer payments to local governments and enhance their fiscal capacity to ensure that basic living needs are met, salaries are paid and governments function smoothly. We will allocate a larger scale of government bonds, including ultra-long special treasury bonds and local government special bonds. In short, an intensified fiscal policy will be implemented to stabilize the economy.

As for the specific amount, which is of great interest to everyone, this can only be published after going through statutory procedures. Everybody can rest assured that a clear-cut fiscal policy in 2025 aimed at intensifying countercyclical regulation will be highly proactive. At the same time, the policy also takes medium- and long-term fiscal sustainability into consideration.

In terms of efficiency, we will emphasize optimization of the fiscal expenditure structure, placing greater emphasis on improving people's livelihoods, stimulating consumption and sustaining its momentum. We will provide greater support for stabilizing employment and boosting consumption by promoting the growth of residents' income, strengthening the social security system, developing new consumption sectors and improving the consumption environment. We will focus on accelerating the development of new quality productive forces, and increase support for fields such as education and talent, scientific and technological breakthroughs, rural revitalization, and green and low-carbon development. At the same time, we will steadily make the fiscal management more scientific, ensuring that every cent is used where it is needed most.

In terms of seizing opportunities, we will take measures early on, enhancing the forward-looking and targeted nature of the policies. We will accelerate spending and quickly convert it into actual expenditures, drive greater social investment and maximize the effect of fiscal policy. In this regard, we have fully considered the timeliness of counter-cyclical adjustment efforts.

In addition, we will deepen the reform of the fiscal and tax systems, boost efforts to prevent and defuse debt risks in key areas, and ensure steady operations and sustainable development of fiscal policy.

Finally, I would like to emphasize that in the face of new situations and problems in both internal and external environments, the fiscal policy has ample room for maneuver and tools at its disposal. We will closely follow developments both at home and abroad, conduct scientific planning and dynamic adjustments as appropriate, and implement policy tools sequentially as options for later use to provide strong support for economic and social development.

That's all for my introduction. My colleagues and I are now ready to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Liao. The floor is now open for questions.

21st Century Business Herald:

Everyone is generally concerned about the state of fiscal operations. How do you view the fiscal revenue and expenditure situation in 2024? Have the budget goals set at the beginning of the year been achieved? Thank you.

Liao Min:

Thank you for your questions. At present, the annual fiscal revenue and expenditure data is being compiled. Based on the preliminary information we have, which I briefly introduced earlier, I will give you further analysis. The fiscal performance in 2024 can be summarized in three sentences:

First, the overall trend has improved. As we know, in the first nine months, national general public budget revenue decreased by 2.2% due to factors such as insufficient demand, negative PPI growth and revenue reductions from policy changes. However, starting in October, the implementation of a series of incremental policies effectively boosted social confidence, leading to an economic rebound and a positive shift in fiscal revenue growth, which steadily increased month by month. In the following months, the year-on-year monthly growth rate of national general public budget revenue remained positive and continued to rise.

Second, the goal of balancing revenue and expenditure can be achieved. On the revenue side, a recovery trend has been maintained, and annual fiscal revenue is expected to meet the budget target. On the expenditure side, national general public budget expenditure exceeded 28 trillion yuan, providing essential financial support for economic and social development, thereby ensuring a balanced budget for the year.

Third, key priorities have been effectively ensured. The structure of fiscal expenditure has been further optimized. For example, investment in essential livelihood services and key sectors has increased, ensuring sufficient funding for areas such as education, agriculture, forestry and water management, social security and employment, and housing support. In the first 11 months, spending on social security and employment exceeded 3.8 trillion yuan, while education expenditure surpassed 3.6 trillion yuan, totaling approximately 7.4 trillion yuan — about one-third of general public budget expenditure — providing significant support. Additionally, spending on agriculture, forestry and water management exceeded 2.2 trillion yuan. These figures show that fiscal support for key areas has remained strong.

These three points offer a brief overview of the situation regarding general public budget revenue and expenditure. Detailed data on annual fiscal revenue and expenditure will be released to the public in due course, following appropriate procedures. Thanks for your questions.

Phoenix TV:

We notice that the Central Economic Work Conference held at the end of last year proposed increasing the fiscal deficit ratio, which is expected to exceed approximately 3% in 2024. Could you please share how the deficit ratio will be arranged for 2025? What considerations are currently being taken into account? Thank you.

Liao Min:

Thank you for your questions. This issue has garnered significant public attention, as the fiscal deficit ratio remains a key focus. The Central Economic Work Conference has clarified that the fiscal deficit ratio will increase in 2025. I would like to share three key points of consideration.

First, there's the purpose of raising the fiscal deficit ratio. Increasing the deficit ratio will provide more momentum for this year's economic development. With a higher deficit ratio, there will be more fiscal space to expand spending and enhance counter-cyclical adjustments. As the deficit ratio increases, combined with the multiplier effect of fiscal policies, it will inevitably stimulate more bank lending and social capital investment, thereby boosting effective demand. More funds can be allocated to support employment, consumption and technological innovation, promoting economic structural adjustment and advancing high-quality development. This, in turn, fosters sustained and healthy economic and social growth.

Second, we need to consider the conditions for increasing the deficit ratio. We have significant capacity to borrow and increase the deficit. This was mentioned in previous press conferences. From a medium- to long-term perspective, China's economy still holds substantial growth potential. First, the government debt ratio is significantly lower than that of major economies and emerging markets, demonstrating that overall fiscal health is sustainable. Second, our government debt is backed by a substantial amount of high-quality assets, which provide both social and economic benefits. Furthermore, the current real interest rate on Chinese government bonds is noticeably lower than China's actual economic growth rate. As a result, government borrowing remains sustainable.

Third, let's discuss how to determine the deficit ratio. Determining the deficit ratio requires a comprehensive consideration of national development needs, macroeconomic growth potential, macro control, fiscal revenues and expenditures, and the medium- and long-term sustainability of public finances. We've conducted thorough discussions and analysis on this matter. In fact, it's common practice for countries worldwide to raise the deficit ratio in response to cyclical changes in the macroeconomy as a way to strengthen counter-cyclical adjustments.

As for the specific deficit ratio for 2025, we can only officially announce it to the public after completing the required legal procedures. While I can't provide specific data today, I assure you that the objectives, conditions and factors considered in raising the deficit ratio have all been thoroughly examined. Thank you.

Jiupai News:

In 2024, China's real estate market showed signs of stabilization, with property prices starting to level off. What fiscal policies are being considered to support this market? Thank you.

Liao Min:

This is an important question. Mr. Lin will address it. Thank you.

Lin Zechang:

Thank you for your question. On Sept. 26, 2024, a meeting of the Political Bureau of the CPC Central Committee emphasized the importance of stabilizing the property market and reversing its downturn. Various departments have introduced a series of policies, and the sector is gaining positive momentum in some cities, indicating that these measures are starting to take effect. Here, I'd like to provide a brief overview of the fiscal-related policies, focusing on two main aspects.  

First, we have adjusted tax policies to lower the tax burden during the transaction and development stages. For example, we have optimized preferential deed tax policies for housing transactions. The statutory deed tax rate ranges from 3% to 5%. Previously, first-time homebuyers and second-home purchasers of units under 90 square meters were taxed at 1%, while units over 90 square meters faced a tax rate of 1.5% for first homes and 2% for second homes. However, these preferential policies for second homes did not apply in first-tier cities like Beijing, Shanghai, Guangzhou and Shenzhen. Under the latest policy, the applicable 1% tax rate has been extended from properties under 90 square meters to those under 140 square meters. Properties over 140 square meters are taxed at 1.5% for first homes and 2% for second homes. Additionally, these preferential policies now apply equally to first-tier cities.

Furthermore, we've eliminated the distinction between ordinary and non-ordinary housing for value-added tax and land appreciation tax purposes. This change particularly affects Beijing, Shanghai, Guangzhou and Shenzhen. Previously, residents in these cities were required to pay VAT when selling non-ordinary housing units that had been held for two years or more. With the elimination of this distinction, all housing transactions in these cities can now benefit from VAT exemptions.

These policy benefits are substantial. For example, second-home buyers purchasing a 120-square-meter apartment in non-first-tier cities can now save 50% on deed tax. In first-tier cities, where such preferential policies didn't exist previously, buyers can save up to two-thirds on deed tax for a similar property. These changes offer significant and tangible benefits for homebuyers.

Additionally, the State Taxation Administration has optimized its collection policies by reducing the minimum prepayment rate for land appreciation tax by 0.5 percentage points, which helps alleviate the financial pressure on real estate enterprises.

These policies aim to benefit both enterprises and individuals and have received a positive response from the market. Transaction activity has notably increased in core cities. According to statistics, in December, the sales area of new commercial housing in 100 key cities increased by approximately 17% month on month and 18% year on year. Moving forward, our focus will be on ensuring effective implementation of these policies to maximize their intended impact.

Second, we have explored expanding the use of special-purpose bonds to include two key areas related to real estate, both aimed at increasing effective demand. Within the newly issued special bond quota for 2025, local governments can allocate funds as needed for land reserves and the acquisition of existing commercial housing to be used as affordable housing. These policies, announced at the end of last year, are expected to yield progressive results throughout 2025.

Regarding land reserves, we support municipal governments in reclaiming and purchasing idle land. Additionally, areas with demand may also acquire new land reserves. We have established clear requirements for the management of special-purpose bonds, and local authorities have begun implementing them. This policy will help optimize the dynamics of land supply and demand, enhance the liquidity of real estate enterprises, and strengthen land reserves in key areas.

We are focusing on support for acquiring existing commercial housing to be used as affordable housing. Recently, we have been actively collaborating with the relevant industry authorities to advance this initiative. This effort has included extensive field research, organizing discussion forums to gather input from various stakeholders, and carefully considering the demands and needs of local governments. We will continue to collaborate with the relevant authorities to swiftly finalize the related policies. Once these policies are clarified, local governments will be able to implement them accordingly.

You may have noticed that in the fourth quarter of last year, several indicators of the real estate market showed improvement, and positive changes are gradually increasing. We believe that as policies continue to take effect and new development models for the real estate sector gradually take shape, the market will further stabilize and move toward recovery.

That's all I have to say about this topic. Thanks.

Bloomberg:

In recent years, the MOF has emphasized improving government debt transparency. Meanwhile, revenue from local special bond projects has been declining. Some scholars advocate for issuing general bonds instead of special bonds for project investments to reduce financing costs. What is the MOF's perspective on this? Thank you.

Liao Min:

Thank you to the Bloomberg reporter for the question. I would like to ask Mr. Wang to respond.

Wang Jianfan:

Thank you for your question. Government debt management is a critical aspect of fiscal policy and an important component of economic and social development. In recent years, the MOF, in collaboration with relevant parties, has continuously enhanced the government debt management system and optimized the composition of government debt. On the one hand, we have scientifically arranged the scale of fiscal deficits, increased central-to-local transfer payments, and optimized the issuance of local government general bonds to reduce interest burdens and enhance fiscal capacity at the local level. On the other hand, we have reasonably expanded the scope of special bonds, increasing their use for project capital in terms of scope, scale and proportion to stimulate effective investments.

To implement the decisions and arrangements of the CPC Central Committee and the State Council on strengthening the management of local government special bonds, the General Office of the State Council recently issued the Opinions on Optimizing and Improving the Local Government Special Bond Management Mechanism. This document outlines seven key areas and 16 specific measures to assist local governments in better utilizing special bonds to strengthen infrastructure, address shortcomings, enhance public welfare and expand investment. This document, released to the public on Dec. 25, establishes a new mechanism for managing special bonds. The new features of this mechanism can be understood in five aspects:

First, it introduces a "New List" for target areas. Since 2019, we have utilized a "positive list" to define the areas eligible for special bond allocation, which includes sectors such as transportation, municipal infrastructure, industrial park infrastructure and major national strategic projects. The recently issued opinions transition from "positive list" management to a "negative list" approach. The "negative list" identifies prohibited categories, including non-revenue-generating projects, administrative office buildings, wasteful prestige projects, performance-driven projects, general competitive industries, and regular expenses such as personnel costs. Special bonds are not permitted for these categories, while all other projects can receive support. This has given local governments greater flexibility to arrange projects according to their specific circumstances.

Second, the mechanism's "New Scope" expands areas designated for use as project capital. The areas where special bonds can be used as project capital have increased from the original 17 industries to 22. Five new sectors have been added, including infrastructure for emerging industries, health care, elder care and child care, freight hubs, and urban renewal, along with various sub-industries. Meanwhile, the maximum proportion of special bonds that can be used as project capital at the provincial level has been increased from 25% to 30%. This expansion in both scope and scale enhances local governments' ability to boost investment capacity and promote economic structural transformation.

Third, the mechanism introduces a "New Model" for project review. We have piloted a "self-auditing and self-issuing" approach in 10 provinces and the Xiong'an New Area, aimed at granting local governments greater flexibility and autonomy. This measure is designed to accelerate the issuance and utilization of bond funds, improve allocation efficiency, and strengthen local governments' primary responsibilities while mitigating legal debt risks. The specific approach is that in the pilot areas — 10 provinces and the Xiong'an New Area — special bond projects no longer require review by national ministries. Instead, once approved by the provincial government, projects can proceed to issuance. In other provinces, projects will still follow the original channels for submission, but improvements have been made to increase the frequency of project submissions to four times a year, providing one submission window each quarter. This gives local governments more options and the flexibility to refine their project proposals in a timely manner. Local governments will regularly submit projects, while national ministries will conduct periodic reviews to ensure quality and improve work efficiency. All provinces will implement a "green channel" for ongoing projects, meaning that ongoing projects that have already been approved and issued special bonds by national ministries do not need to be resubmitted. Once approved by provincial governments, these projects can proceed directly to issuance.

Fourth, the mechanism broadens the "New Sources" for repaying special bonds. Local governments are permitted to allocate fiscal subsidy funds over multiple years, in addition to special revenue and corresponding government fund revenues. They can also reallocate other project-specific revenues, project entity funds, and government fund income to ensure timely and adequate repayment of principal and interest. This approach aims to achieve regional balance among cities and counties within the province while effectively preventing repayment risks.

Fifth, the mechanism establishes "New Requirements" for the comprehensive management of borrowing, utilization and repayment. Special bond funds are now subject to exclusive account management and are earmarked for specific purposes, ensuring strict prevention of fund misappropriation or diversion. Asset accounting for new projects has been standardized, providing clear guidelines for how administrative institutions and state-owned enterprises should register and manage their assets. Existing project assets are categorized and managed, with detailed records maintained in comprehensive ledgers. Regions with the necessary conditions are encouraged to establish special bond repayment reserve funds. All "self-auditing and self-issuing" pilot areas are required to expedite the creation of repayment reserve system.

Next, the MOF will collaborate with the National Development and Reform Commission and other relevant departments to effectively implement policies. They will guide local governments in improving the management mechanisms for special bonds, ensure the effective management and utilization of special bond funds, fully unleash the effectiveness of these policies, and promote sustained economic recovery. Thank you.

Nanfang Plus:

The Central Economic Work Conference proposed implementing "more proactive fiscal policies." Could you please outline the fiscal policy arrangements for 2025? Additionally, what flexibility is there to enhance counter-cyclical adjustments in these fiscal policies? Thank you.

Liao Min:

Thank you for the question. The Central Economic Work Conference clearly stated that in 2025, more proactive fiscal policies will be implemented with ongoing and enhanced efforts. There's significant interest in how this year's fiscal policies will be more "more proactive." I've just given a preliminary introduction, so now I'll explain the meaning of "more proactive" by discussing four different aspects.

First, we'll increase the deficit ratio. To meet the needs of counter-cyclical macroeconomic regulation, we will increase the fiscal deficit ratio in 2025. Moreover, as our GDP continues to grow, the scale of the deficit will increase significantly. Total fiscal expenditure will be further expanded, and counter-cyclical adjustments will be intensified to provide strong support for the ongoing recovery and improvement of the economy.

Second, we'll expand the scale of debt. We'll issue larger-scale government bonds to provide greater support for stabilizing growth and adjusting the economic structure. We'll expand the scale of ultra-long-term special government bonds to provide stronger support for the "two major" projects concerning the implementation of major national strategies and the build-up of security capacity in key areas. We'll also use the special bonds to intensify and expand the implementation of the "two new" policies that encourage large-scale equipment upgrades and consumer goods trade-ins. We'll increase the quota for new local government special bonds and expand the areas of investment and the scope for their use as project capital. This will drive effective investment and support strengthening infrastructure, addressing weaknesses, and promoting development. In addition, we'll issue special government bonds to help major state-owned banks replenish their core tier-one capital. This will enhance their ability to provide credit to the real economy and support the sustainable expansion of effective demand and economic restructuring.

Third, we'll ensure key expenditures. We'll vigorously optimize the structure of fiscal expenditure, strengthen support for key areas, and place greater emphasis on improving people's well-being, promoting consumption, and enhancing future potential. In terms of improving people's livelihoods, we'll appropriately increase the basic pension for retirees, raise the basic pension for urban and rural residents, and enhance financial subsidy standards for urban and rural residents' medical insurance to boost residents' incomes. In terms of boosting consumption, we'll fully utilize fiscal and tax tools to support special initiatives aimed at stimulating consumption. We'll ramp up our efforts on trade-ins for consumer goods, innovate diverse consumption scenarios, and make consumption more enjoyable and convenient. To enhance future potential, we'll support and accelerate the development of new quality productive forces. We'll strengthen support for key areas such as education and technology, rural vitalization, green and low-carbon initiatives, and major regional strategies to promote steady and long-term economic growth.

Fourth, we'll improve capital efficiency. The allocation and use of fiscal funds will focus more on goal- and performance-oriented strategies. We'll accelerate the progress of fund allocation and disbursement to effectively manage and utilize valuable fiscal resources, achieving greater benefits with the same amount of money. We'll also continue to ensure that Party and government agencies promote frugality, oppose extravagance and waste, prohibit vanity projects, and allocate more funds to key areas and those in greatest need. At the same time, we'll continue to optimize new resources while revitalizing existing ones. We'll effectively utilize incremental funds while actively working to enhance existing assets, thereby improving the allocation efficiency of fiscal resources. In 2025, we'll strengthen coordination between fiscal and monetary policies, focusing on enhancing their combined and multiplier effects. By utilizing public funds, we aim to stimulate more credit and non-public capital investment, restore market confidence, and play a positive role in expanding domestic demand and supporting stable, healthy economic development.

Looking ahead, the MOF will further refine and improve its fiscal policies, implement them proactively, and leverage their effectiveness as soon as possible.

That's all I have to share. Thank you.

Red Star News:

My question is, two months ago, the Standing Committee of the National People's Congress approved a 6 trillion yuan debt resolution plan. What is the current progress under the phased implementation plan? Additionally, what are the next steps for advancing the implementation of the debt restructuring plan? Thank you.

Wang Jianfan:

First, I want to thank you for your interest in this policy. On Nov. 8, 2024, upon the Standing Committee of the National People's Congress's (NPC) approval of a 6 trillion yuan debt swap increase, we provided a detailed explanation of the policy rationale and implementation plans during a press conference held by the General Office of the NPC Standing Committee. Afterwards, we have coordinated with relevant parties to accelerate implementation and ensure the policy achieves its intended outcomes. Let me outline the key initiatives we have implemented.

On the one hand, we have moved swiftly to implement these policies so that they can bring benefits as soon as possible. On Nov. 8, the NPC Standing Committee approved the motion. On Nov. 9, after expedited approval procedures, we allocated the debt quotas to regions and directed them to step up efforts in issuing and utilizing funds. As Mr. Liao just explained, the 2 trillion yuan in replacement bonds allocated for 2024 was fully issued by Dec. 18, 2024, and most regions have now completed utilizing these funds. We've now entered 2025, and according to the motion approved by the NPC Standing Committee, an additional 2 trillion yuan quota is available for this year. Various regions have already begun the issuance process.

On the other hand, we have enhanced oversight, ensured accountability and strictly prevented any deviation in policy implementation. We have directed localities to properly utilize these policies, enforced strict discipline in debt replacement procedures, and prohibited bond fund misappropriation. This ensures these beneficial measures achieve their intended outcomes while preventing any misuse or wasting of these supportive funds.

The debt replacement policies are now showing positive results in easing financial constraints and reducing burdens. Various localities have seen their average debt replacement costs decrease by more than 2 percentage points, with some regions experiencing reductions exceeding 2.5 percentage points, significantly easing their principal and interest payment burdens. Some regions have prioritized replacing maturing open market bonds and non-standardized debts involving many stakeholders, which has significantly improved their local financial environment. At the same time, the implementation of debt replacement policies has created additional space for localities to boost domestic demand. With improved liquidity in local funding channels, governments can better support investment, consumption and technological innovation. This promotes stable economic growth and structural optimization while strengthening long-term development potential.

Moving forward, the MOF will continue working with relevant parties to ensure thorough policy implementation, following the decisions and arrangements of the CPC Central Committee and the State Council.

First, we will continue strengthening guidance to localities and ensure thorough implementation of debt replacement requirements. We will guide localities to fully and effectively utilize central government support policies, promptly conduct research and address new issues emerging during the debt resolution process, and promote successful local practices for others to learn from. We have established dedicated platforms to share successful practices for accelerating the resolution of existing hidden debts.

Second, we will implement comprehensive oversight throughout the bond funding process and ensure compliant use. We'll guide localities to establish ledgers for existing hidden debt replacement, maintain complete and accurate records of bond issuance, utilization and debt service, and ensure all funds are subject to distinct account management, separate accounting and closed-loop operation.

Third, we must firmly prevent the accumulation of new hidden debts while working to fully resolve existing obligations. We'll maintain a "zero tolerance" stance through tough oversight, strengthen interdepartmental regulatory coordination, and seriously address issues such as illegal borrowing and fraudulent hidden debt resolution. We will accelerate the reform and transformation of financing platforms and resolutely block illegal and irregular local borrowing channels to promote sustainable development. Thank you.

Economic Daily:

Providing public services and ensuring public welfare are the most fundamental functions of public finance. Could you share the achievements of fiscal measures in promoting stable employment? What additional measures will be adopted? Thank you.

Lin Zechang:

Thank you to the Economic Daily reporter for the questions. Employment is indeed a matter of significant public concern. It affects not only individual households but also the broader economy, serving as both the foundation of people's livelihoods and a crucial basis for increasing personal income and boosting consumption. The CPC Central Committee and the State Council have consistently prioritized employment stability, viewing it from a strategic perspective. The MOF has made promoting employment a top priority and worked with relevant departments to implement a series of policies and measures to maintain overall employment stability. Let me outline the four main aspects.

First, we have effectively utilized transfer payments to help local governments maintain employment stability. In 2024, the central government allocated 66.7 billion yuan in employment subsidies to help local governments enhance their public employment service systems and address structural employment challenges.

Second, we have stepped up our efforts to implement policies that stabilize employment, and encouraged enterprises to create more job opportunities. We have continued to implement structural tax and fee reduction policies, and maintained policies on the phased reduction of premiums for unemployment insurance and work-related injury insurance, and policies of refunding unemployment insurance premiums to enterprises that make no or minimal cuts to staff members, supporting enterprises in stabilizing and expanding employment. In the first three quarters of 2024, these policies delivered more than 150 billion yuan of benefits to enterprises. At the same time, we have actively leveraged the role of government financing guaranty in stabilizing employment. In 2024, the scale of the re-guarantee business of the national financing guaranty fund reached 1.41 trillion yuan, an increase of 7.6% year on year, with the vast majority used to support labor-intensive small and micro enterprises and self-employed individuals, covering multiple industries such as light industry and textiles, accommodation and catering, postal and warehousing, wholesale and retail, and construction, benefiting approximately 12 million jobseekers.

Third, we have implemented policies to encourage entrepreneurship and promote job creation through business startups. For example, a one-time entrepreneurship subsidy is provided to college graduates who are eligible, jobseekers facing difficulties in securing employment and migrant workers who start their own small and micro enterprises or engage in self-employment for the first time. Another example is that key groups such as migrant workers who start businesses in their hometowns, as well as small and micro enterprises that employ jobseekers from these key groups, can apply for startup guaranteed loans, with subsidized interest payment. Additionally, we have continued to support the implementation of programs on innovation and entrepreneurship education for college students to cultivate and enhance the innovation and entrepreneurship abilities of college students.

Fourth, we have increased support for key groups to maintain overall stability in employment. One measure has been to provide a one-time subsidy to enterprises of up to 1,500 yuan per person for hiring fresh graduates or college graduates who have not been employed within two years after leaving school, encouraging enterprises to provide more jobs for young people. In the first three quarters of 2024, a total of 900 million yuan was distributed to 170,000 enterprises, benefiting 620,000 college graduates and other young people. Another measure has been to support an increased number of posts offered by the "Go West" program and continue to implement grassroots service projects such as the program encouraging college graduates to take community-level posts in education, agriculture, health care and poverty relief, and special employment programs enabling college graduates to serve as teachers in rural compulsory education schools and guide college graduates to work at the grassroots level. In addition, we have made greater efforts to provide vocational skills training for key groups, such as migrant workers and those who have been lifted out of poverty, and strengthened assistance for those in difficulties such as people with disabilities and members of zero-employment families to secure jobs.

Next, the MOF will continue to strengthen investment and support to maintain employment stability and ensure the people's well-being, and implement and improve policies and measures.

First, we will continue to implement policies for stabilizing employment and promoting job creation. We will maintain policies to stabilize and increase employment, such as policies on phased reduction of premiums for unemployment insurance and one-time subsidies for increasing employment, to continuously lower enterprises' operating costs.

Second, we will introduce new measures conducive to increasing employment. According to the decisions of the CPC Central Committee, the MOF will cooperate with relevant departments to prioritize supporting the development of key areas, including the cultural and tourism industry, other modern service industries, and the foreign trade sector. With more stable and improved development of these industries, more jobs will be created.

Third, we will better drive micro and small enterprises to provide more jobs. We will actively make good use of policy tools such as rewards and subsidies for guaranteed loans for business startups and government financing guaranty systems, and channel bank loans and other financial support for micro and small enterprises to better promote their development, and thereby enhance their ability to create more jobs. Thank you.

Shou Xiaoli:

Due to the time limit, we will have one last question.

CCTV:

We know that the Central Economic Work Conference held at the end of last year identified supporting the expansion of domestic demand as the primary key task. As such, what specific measures will we take in this regard? Thank you.

Liao Min:

Thank you for your question. At present, expanding domestic demand is a buzzword when it comes to analyzing China's macroeconomic issues. In fact, expanding domestic demand is related to both economic balance and stability and economic security. It is a strategic move in the sustainable development of our economy. China has a huge domestic market, with significant potential for both consumption and investment, which can be converted into momentum for economic recovery and growth. Domestic demand includes both investment and consumption. In 2025, the MOF will follow the decisions and deployment of the CPC Central Committee and the State Council, intensify efforts to support boosting consumption, improve investment efficiency, and take comprehensive steps to expand domestic demand. I will introduce the work from the following main aspects.

The MOF will take multiple measures and increase support to boost consumption. First, consumption is a function of employment and income, and promoting consumption contributes to stabilizing and improving the macroeconomy. The major purpose of counter-cyclical macro regulation is to increase employment and incomes among residents through multiple channels, thereby enhancing actual spending power. Second, we will support further expansion of the trade-in policy for consumer goods by widening its coverage, optimize the subsidy application process, and improve the recycling system to guide and stimulate more spending on big-ticket items that people need, thereby delivering greater benefits to consumers. Third, China has diverse consumption potential. We will make good use of fiscal policies to actively support the development of new industries such as the elderly care service industry and cultural tourism. We will support the improvement of related infrastructure, raise public service standards, and support the cultivation of more new consumer industries and consumption scenarios based on changing spending habits and adjustments to the economic structure. Fourth, we will roll out trials on the modern commercial distribution system, promote the implementation of a new round of actions to shore up weak links in national comprehensive freight hubs, expand the demonstration scope of the digital transformation and upgrading of highway and waterway transportation infrastructure, and reduce logistics costs, so that consumers can receive more benefits.

While directly introducing policies to support consumption, we also remain committed to supporting the expansion of effective investment. This is conducive to promoting economic growth and fostering new industries and consumption scenarios, thus driving the expansion of employment and increasing residents' incomes, fundamentally boosting overall consumption, and unleashing the potential of domestic demand.

To be specific, it is necessary to take coordinated steps to make good use of government investment funds, focus on key areas and weak links to increase investment, and improve investment efficiency. In addition to increasing the issuance of ultra-long-term special treasury bonds and the issuance and use of local government special-purpose bonds that I mentioned earlier, the central government budget for investment will also be appropriately increased, with reasonable distribution and priorities. In terms of implementation, we will make reasonable arrangements for bond issuance according to procedures, expedite the allocation of funds, promptly break them down into specific projects, and form physical workloads as early as possible. This will effectively leverage government investment to effectively drive more bank credit and social investment, promoting the stabilization of the economy.

As the Spring Festival approaches, my colleagues and I, on behalf of the MOF, would like to extend early new year greetings to everyone here today. Thank you for your interest in the financial work. Thank you.

Shou Xiaoli:

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

Translated and edited by Chen Xinyan, Yan Bin, Liu Caiyi, Cui Can, Xiang Bin, Wang Xingguang, Xu Kailin, Wang Wei, Li Huiru, Fan Junmei, Liu Sitong, Mi Xingang, Wang Yiming, 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. Kang Yi, deputy head of the Leading Group of the State Council for the Fifth National Economic Census and commissioner of the National Bureau of Statistics (NBS)

Mr. Lin Tao, director of the General Office of the Leading Group of the State Council for the Fifth National Economic Census and deputy commissioner of the NBS

Mr. He Ping, director of the Census Center of the NBS

Ms. Wang Guanhua, deputy director general of the Department of Comprehensive Statistics of the NBS

Chairperson:

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

Date:

Dec. 26, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). We have invited Mr. Kang Yi, deputy head of the Leading Group of the State Council for the Fifth National Economic Census and commissioner of the National Bureau of Statistics (NBS), to introduce the outcomes of the fifth national economic census and answer your questions. Also attending today's press conference are: Mr. Lin Tao, director of the General Office of the Leading Group of the State Council for the Fifth National Economic Census and deputy commissioner of the NBS; Mr. He Ping, director of the Census Center of the NBS; and Ms. Wang Guanhua, deputy director general of the Department of Comprehensive Statistics of the NBS.

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

Kang Yi:

Good afternoon, friends from the media. I am pleased to attend today's press conference held by the SCIO on the fifth national economic census. The economic census is a major national survey of the country's economic strength, and an important means to comprehensively understand and grasp the economic foundation. According to the Regulations on National Economic Census, the economic census is conducted once every five years, and is implemented in years ending with a three and an eight. Our country has successively conducted five national economic censuses. The fifth, carried out in 2023, comprehensively ascertained the economic foundation of China's secondary and tertiary industries that year.

Before the release of the census data, on behalf of the NBS and the Office of the Leading Group of the State Council for the Fifth National Economic Census, I would like to express my sincere gratitude to all the participants, supporters, census workers, census supervisors, journalists and all sectors of society who have worked hard on the census.

Next, I will brief you the results of the national census data, and then my colleagues and I will answer your questions.

In accordance with the decisions and arrangements of the Central Committee of the Communist Party of China (CPC) and the State Council, all regions and departments strictly implemented the Regulations on National Economic Census and the Notice of the State Council on Conducting the Fifth National Economic Census, coordinated planning and implementation, strengthened collaboration and cooperation, and carried out the fifth national economic census in a solid and orderly manner. After the joint efforts of more than 2.1 million enumerators nationwide, the data collection, review and evaluation work has been successfully completed. The census presented a general picture of the secondary and tertiary industries, reflecting the new achievements of China's economic and social development. The census results show that the number of units in the secondary and tertiary industries has increased significantly, with more people being employed. The scale of enterprise assets continued to grow, business revenue grew fast, technological innovation ability continued to improve, and labor productivity was improved. The industrial structure was optimized and upgraded, the digital economy grew stronger, and the coordinated and balanced regional development was strengthened. Over the past five years, China has achieved significant results in high-quality development.

First, the main objectives and content of the census. 

The main objectives of the fifth national economic census were to take a complete survey of China's secondary and tertiary industries in terms of their scale, layout and performance, to get a clear picture of the basic situation of all types of units and grasp the economic linkages between sectors of the national economy, and to objectively reflect the progress in promoting high-quality development, creating a new pattern of development, building a modernized economy, deepening supply-side structural reform as well as in innovation-driven development, coordinated regional development, ecological conservation, high-standard opening up and development of public service system. The census will assist to consolidate the foundation of statistics and advance the statistical modernization reform, thus providing scientific and accurate information support to strengthen and improve macroeconomic governance, formulate medium- and long-term development plan in a scientific way and build China into a modern socialist country in all respects.

The fifth national economic census is an essential survey of national conditions and strength. Over two years since November 2022, the work in census agency establishment, publicity and mobilization, formulation of plan, pilot tests, personnel training, demarcation of census areas, inventory checking, field enumeration, data review and acceptance, data quality check, data aggregation and evaluation has been completed successfully. At present, the census has entered the phase of dissemination of major data, and development and application of data.

Second, the main characteristics of the census.

First, the census was carefully planned and implemented with guarantee measures efficiently taken. The CPC Central Committee and the State Council attached great importance to the fifth national economic census. General Secretary Xi Jinping pointed out that the fifth national economic census should be carried out solidly. All regions and departments concerned included the census into their priority agenda, strengthened coordination and leadership, and ensured the responsibilities for the census were fulfilled. Local governments at different levels set up census agencies in time, enhanced coordination and broke down tasks in detail. The Office of the Leading Group and member departments actively fulfilled their duties, advanced information sharing and provided multiple guarantees, laying a solid foundation for the successful implementation of the census.

Second, we strengthened top-level design and strictly implemented the process specifications of the census. After conducting special pilot tests and comprehensive pilot test, the Plan for the Fifth National Economic Census was formulated and corresponding implementation measures were developed by all regions and relevant departments. Strong census teams were organized at local levels, multi-level and systematic professional trainings were conducted for over 2.10 million enumerators and enumeration instructors, and inventory checking, field enumeration and sample survey of self-employed units were implemented in a normative and orderly manner. Finance, railway and some other government departments as well as relevant units conducted the census of their own sectors. Finance, railway and some other government departments as well as relevant units conducted the census of their own sectors.

Third, we enhanced the quality and efficiency of the census, and conducted the input-output surveys simultaneously. To facilitate the alignment of economic aggregate data and structural data, the census incorporated the input-output survey while taking into account the differences in survey content and methodology, which effectively integrated business procedures with separate goals and demands accommodated. A unified electronic ledger for nearly 80,000 units for input-output survey was formed for the first time, which enabled early preparation of survey data by respondents, thus effectively reducing their reporting burden. The comparison and checking of input-output survey data with census data were strengthened to make the data better coordinated and aligned.

Fourth, we innovated census processes to enhance the efficiency of the census work. Data sharing and application between government departments were further intensified with administrative records from departments including staffing, civil affairs, taxation and market regulation effectively integrated, providing data basis for inventory checking and census registration. The application of modern information technologies was promoted. A data collection and processing system with a unified collection mode was innovatively developed, which enabled a combination of online reporting and field data collection via mobile terminals for the census, and allowed the respondents to report data online on their own. Therefore, the census quality and efficiency were improved comprehensively.

Fifth, we prevented and tackled census fraud, and ensured data authenticity and quality. Following the principle of conducting the census according to the law, with a scientific approach and for the benefit of the people, we strengthened the management of data quality throughout the process, and prevented and addressed statistical fraud to ensure the authenticity of the data. We carried out extensive publicity and mobilization work, holding a variety of educational and engaging activities to strive for understanding and support from census respondents and to foster a positive atmosphere for the census. We rigorously investigated and addressed violations of laws and regulations related to the census, and promptly rectified non-standard practices to ensure the quality of source data.

The post-enumeration checks for the fifth national economic census showed that the combined error rate was 4.7‰, meeting the established standards for data quality.

Third, the main data of the census.

I. Economic entities. By the end of 2023, China had a total of 33.27 million legal entities engaged in secondary and tertiary industry activities, an increase of 11.481 million or 52.7% compared to the end of 2018. There were 36.36 million industrial activity units, up by 11.81 million or 48.1%, and 87.995 million self-employed units, up by 25.036 million or 39.8%.

In terms of sectors, the three largest sectors for legal entities in the secondary and tertiary industries were: wholesale and retail trade with 10.197 million, accounting for 30.6%; leasing and business services with 4.609 million, accounting for 13.8%; and manufacturing with 4.049 million, accounting for 12.2%.

In terms of regions, the eastern region had 17.941 million legal entities in the secondary and tertiary industries, accounting for 53.9%, down 2 percentage points from the end of 2018; the central region had 7.334 million, accounting for 22%, up by 1.4 percentage points; the western region had 6.372 million, accounting for 19.2%, up by 0.6 percentage point; and the northeastern region had 1.623 million, accounting for 4.9%, which is basically the same as that of the end of 2018.

II. Employed personnel. By the end of 2023, the number of people employed in legal entities within the secondary and tertiary industries nationwide reached 430 million, an increase of 45.748 million or up by 11.9% compared with the end of 2018. Among them, 170 million were female. There were 160 million employees in the secondary industry, a decrease of 8.263 million people or 4.8%; and 260 million employees in the tertiary industry, an increase of 54.012 million people or 25.6%. There were 180 million self-employed individuals, of which 84.2 million were female.

In terms of sectors, the three largest sectors for the number of employees in the secondary and tertiary industries were: manufacturing with 100 million people, accounting for 24.4%; wholesale and retail trade with 53.25 million people, accounting for 12.4%; and construction with 51.17 million people, accounting for 11.9%.

In terms of regions, the number of people employed by legal entities in the secondary and tertiary industries in the eastern region was 220 million, accounting for 52.3%, down 1.8 percentage points compared with the end of 2018; in the central region it was 98.907 million, accounting for 23.1%, up 1.1 percentage points; in the western region it was 86.32 million, accounting for 20.1%, up 0.8 percentage point; and in the northeastern region it was 19.428 million, accounting for 4.5%, down 0.2 percentage point.

III. Assets, liabilities and business revenue. In terms of assets, at the end of 2023, the total assets of legal entities in the secondary and tertiary industries nationwide amounted to 1,439.1 trillion yuan. Among this, those of legal entities in the secondary industry accounted for 252.1 trillion yuan, and those of legal entities in the tertiary industry accounted for 1,187 trillion yuan. In terms of liabilities, the total liabilities of legal entities in the secondary and tertiary industries were 975.4 trillion yuan. Among this, those of legal entities in the secondary industry were 150.2 trillion yuan, and those of legal entities in the tertiary industry were 825.2 trillion yuan. In terms of business revenue, in 2023, that of corporate enterprises in the secondary and tertiary industries was 442.6 trillion yuan, up by 50.2% compared with 2018. Among this, the business revenue of corporate enterprises in the secondary industry was 188.8 trillion yuan, up by 31.3%; and that of corporate enterprises in the tertiary industry was 253.8 trillion yuan, up by 68.3%.

IV. Core industries of digital economy. At the end of 2023, there were 2.916 million corporate enterprises engaged in the core industries of the digital economy, with 36.159 million employees. The business revenue in 2023 reached 48.4 trillion yuan. Specifically, 262,000 corporate enterprises were engaged in digital product manufacturing, employing 13.372 million people and with 20.5 trillion yuan in business revenue; 274,000 corporate enterprises were engaged in digital product services, employing 1.519 million people and with 4.2 trillion yuan in business revenue; 1.43 million corporate enterprises were engaged in digital technology application, employing 14.609 million people and with 14 trillion yuan in business revenue; and 950,000 corporate enterprises were engaged in industries driven by digital factors, employing 6.659 million people and with 9.7 trillion yuan in business revenue.

V. Emerging industries. At the end of 2023, there were 96,000 industrial corporate enterprises above designated size engaged in the strategic emerging industries; and 62,000 service corporate enterprises above designated size engaged in the strategic emerging industries. There were 53,000 high-tech manufacturing corporate enterprises above designated size with a business revenue of 22.5 trillion yuan; and 65,000 high-tech service corporate enterprises above designated size with a business revenue of 15.7 trillion yuan. In 2023, the full-time equivalent of R&D personnel in industrial corporate enterprises above designated size was 4.817 million person-years, and the R&D expenditure was 2.1 trillion yuan.

Fourth, the revision of GDP during the census year.

According to the system of national accounts and international practices, the NBS revised the GDP of the census year (2023) based on the data of the fifth national economic census and relevant administrative records. The process also factored in the change of the accounting approach of the owner-occupied housing services of urban households. The revised GDP of 2023 was 129.4 trillion yuan, which is 3.4 trillion yuan more than the preliminary accounting, or up by 2.7%. The details of the revised data will soon be released on the official website of the NBS.

Generally speaking, the fifth national economic census has yielded fruitful results with its major data objectively reflecting the latest progress and achievements of China's economic and social development over the past five years. Going forward, we will firmly implement the guiding principles of the third plenary session of the 20th CPC Central Committee, focus on the reform targets and tasks set by the CPC Central Committee and the State Council, and promote the implementation of statistical reform tasks. We will release more detailed census results successively to the public, such as economic census yearbook and interpretation reports through multiple channels, and actively organize in-depth development and application of the census data to fully leverage their value. By doing so, we will provide authentic and reliable statistics to support the comprehensive deepening of the reform and advancement of Chinese modernization. Thank you.

Shou Xiaoli:

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

National Business Daily:

What achievements were made in the recently released fifth national economic census? Did it achieve its expected goals? Thank you.

Kang Yi:

Thank you for your questions. Just now, we gave a brief introduction to the main data of the fifth national economic census. This is a major national survey of the country's conditions and strength on the new journey of the new era. The main purpose is to comprehensively examine the development of China's secondary and tertiary industries, understand the economic links between industries in the national economy, and promote new progress in high-quality development.

In general, since the census work began, various regions and departments conscientiously implemented the decisions and plans of the CPC Central Committee and the State Council, adhered to the principle of conducting the census according to the law, in a scientific manner, and with a people-centered approach. We insisted on seeking truth from facts, and sought reform and innovation, ensuring that the census data is authentic and accurate. We understood the economic situation and new characteristics of economic development. This provided important reference for strengthening and improving macroeconomic governance, scientifically formulating medium and long-term development plans, and building China into a modern socialist country in all respects. This census fully achieved its expected goals. The achievements of the census were mainly in three aspects:

First, we obtained a comprehensive understanding of China's economic conditions. Since the fourth national economic census, the international environment for China's economic and social development has undergone profound and complex changes. During the past five years, we spent three years combating the pandemic, which severely impacted the economy. Fully understanding the economic foundation of our country is of great significance in promoting sustainable and sound economic development. Through the fifth national economic census, we surveyed all legal entities, industrial activity units, and self-employed units engaged in the secondary and tertiary industries nationwide. We have gained a clear understanding of the scale, structure, layout and performance of the secondary and tertiary industries. This provides comprehensive and reliable data for analyzing industrial development, promoting industrial integration, and facilitating sound economic development.

Second, the economic census objectively reflects the progress we have made in high-quality economic development. China's economy is turning for high-quality development, and promoting high-quality development is the theme of the new era. Census data show that over the five-year period, various departments and localities thoroughly applied the new development philosophy and moved faster to foster the new development dynamic, making progress with innovation-driven development, structural optimization and green transition. In the fifth national economic census, we surveyed the digital economy and platform economy, and carried out input-output surveys in a coordinated manner. The results objectively reflect the huge changes in China's economic structure, new features of innovative development, and new trends of green and low-carbon development, providing support for continued high-quality development in the form of statistics information.

Third, the economic census provides an important foundation for Chinese modernization. We have built a moderately prosperous society in all respects and embarked on a new journey toward building a modern socialist country in all respects. According to the decisions and arrangements of the CPC Central Committee, we aim to basically realize socialist modernization by 2035. To fulfil this goal, we need a well-designed plan for economic and social development. The fifth national economic census collected information regarding key indicators such as the GDP, economic structure and economic results, thus providing important references for implementing the 14th Five-Year Plan, preparing the 15th Five-Year Plan, and accelerating high-quality economic development to eventually realize the goal by 2035. Thank you.

Cover News:

Just now, Mr. Kang mentioned that data quality is the lifeline of censuses. During this census, how did you ensure the collected data was authentic and accurate? Thank you.

Kang Yi:

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

He Ping:

Thank you for your question. The NBS always prioritized the quality of statistics data throughout the fifth national economic census. This census followed a well-designed plan, enhanced whole-process data quality control as well as the strength of statistical law enforcement, and enforced various measures, to effectively ensure the quality, authenticity and reliability of census data. We mainly adopted three approaches:

First, we ensured data quality at the source. During the census, we regulated the collection of data, combining three methods of data collection: census workers collecting data on site, self-declaration, and reports from various departments. The census registration was standardized in an orderly manner, with measures taken to prevent deliberate disruptions. We enhanced training and guidance for census workers and promptly responded to concerns over the census from the public and targets being surveyed to ensure that they better understood the census and maintained cooperation. During the census, investigations were combined, when a business entity operates under several different titles with the same workforce and independent accountability is not feasible. Entities and self-employed individuals without actual business activities throughout the year were excluded from the census. Therefore, we ensured that those being surveyed conformed to relevant regulations of the census plan so as to improve the quality of data at the source.

Second, we enhanced data verification and review. During the census, we increased the use of information technology with the aim of facilitating the self-declaration of data and improving the effectiveness of data verification. We diligently implemented the measures on census data verification and acceptance. Census data were verified immediately upon collection. We used big data analysis and comparison and data logic examination, among other technical means and evaluation methods, to verify and confirm data. After the census registration concluded, we organized data quality review and selective follow-up examinations to thoroughly test the quality of the census registration, and address problems discovered in the process, as well as similar or related issues.

Third, we effectively investigated and dealt with illegal activities and discipline violations. We maintained a zero-tolerance approach toward all illegal activities and discipline violations in statistical work, with no exceptions, to achieve full coverage and a long-term deterrent effect. We showed no leniency to any such behavior, responding immediately upon discovery during the census. Illegal activities and discipline violations discovered in some localities during the census were promptly investigated and dealt with. The NBS also urged relevant authorities to strictly pursue the liabilities of responsible personnel according to the law as well as Party and government discipline.

Thanks to the support of society, the cooperation of surveyed units, and the dedicated work of more than 2.1 million census instructors and enumerators nationwide, the fifth national economic census achieved high data quality. The comprehensive error rate through self-declaration was 0.47%. The data quality met the control standards. Thank you.

CCTV:

As an examination of the national economy in the new era, what important changes in China's economy over the five-year period were reflected in the fifth national economic census? Are there any particular features worth noting? Thank you.

Kang Yi:

Thank you for your questions. We paid close attention to this issue during the census. The census results show that over the five-year period, China's economy withstood multiple domestic and international risks, maintaining a trend of steady progress. Compared to the results of the fourth national economic census, China's economic development showed many positive changes in terms of the GDP, optimized structure, innovation-driven development, security and green transformation, boasting a solid foundation, strong resilience and huge potential. These changes can be summarized as follows:

First, the foundation for development was strengthened. Over the five-year period, facing the profound and complex changes in the external environment and the tremendous shock of COVID-19, our country adopted a general working principle of pursuing progress while maintaining stability, enforced sound and effective macro regulation, overcame unprecedented challenges, and significantly improved comprehensive national strength. China's GDP reached almost 130 trillion yuan in 2023, ranking second worldwide. Over the five-year period, China's contribution to global economic growth averaged around 30%, serving as the largest source of global economic growth. The foundation for industrial development was further solidified. The census results show that at the end of 2023, the secondary and tertiary industries saw increases in legal entities, up 52.7% from the end of 2018, with total assets of the legal entities rising 57.4%. Both industries can be said to have realized remarkable growth.

Second, the development structure was further optimized. Over the five-year period, China continued with industrial upgrading and further improved coordinated development between regions. The service sector saw a large increase in the number of business entities, becoming an important force for boosting economic growth and high-quality employment. In 2023, the value added of the tertiary industry accounted for 56.3% of GDP, up more than 2 percentage points from 2018. We deepened the strategy to strengthen manufacturing and maintained rapid development in the sector. At the end of 2023, the number of legal entities in manufacturing reached 4.048 million, up 23.8% from the end of 2018; and the total assets of legal entities in manufacturing reached 151 trillion yuan, up 41.7%. The share of central and western regions in the economy rose, and we realized more coordinated development between regions. At the end of 2023, the proportion of legal entities in secondary and tertiary industries in the central and western regions in the national total increased by 1.4 percentage points and 0.6 percentage point, respectively, from the end of 2018. We also deepened major regional development strategies, showing agglomeration effects. In 2023, the number of legal entities in secondary and tertiary industries grew rapidly in the Beijing-Tianjin-Hebei region, Yangtze River Economic Belt, Yangtze River Delta, and the nine provincial regions along the Yellow River.

Third, the development momentum was stronger. Over the five years, China placed innovation at the central position in its modernization drive, and deeply implemented the strategy of innovation-driven development, steadily fostering new quality productive forces. Businesses had seen stronger momentum in innovation and R&D, and numerous innovative achievements had emerged. In 2023, industrial enterprises above designated size filed 65.1% more invention patents than in 2018. Technological innovation had been empowering industrial transformation and upgrading, and the conversion of scientific and technological achievements into real productive forces was accelerating. High-end industrial development was also speeding up. At the end of 2023, the proportion of corporate enterprises in the high-tech manufacturing industry to all manufacturing enterprises above designated size increased by 2 percentage points compared to the end of 2018; and the proportion of corporate enterprises in the high-tech service industry to all service businesses above designated size exceeded one-quarter. New technologies and new processes were also being widely applied to accelerate the development of many new industries and new business models. At the end of 2023, the number of enterprises above designated size engaged in strategic emerging industries nationwide reached 158,000, accounting for over one-fifth of all industrial and service enterprises above designated size. The new retail format, represented by businesses without brick-and-mortar stores, was developing rapidly, with operating income increasing by 137% compared to 2018, becoming the fastest-growing sector in the retail industry. The scale of the online retail market continued to expand, and the online retail industry had performed well, with operating income growing by 186%.

Fourth, development security had been better ensured. Over the five years, China had pursued a holistic approach to national security, kept in mind both domestic and international situations, ensured both development and security, steadily improved the self-supporting and risk-controllable industrial and supply chains, and strengthened the ability to ensure energy supply and food security. China made further breakthroughs in core technologies in key fields, and improved the secure and reliable domestic production and supply system. In 2023, China's manufacturing added value ranked first in the world for the 14th consecutive year, with rapid growth in the production of integrated circuits and industrial machine tools. China had ensured sufficient energy supply. By 2023, the production of raw coal reached 4.72 billion metric tons, the production of crude oil reached 210 million metric tons, and power generation reached 9.5 trillion kilowatt-hours. Food security had also been effectively guaranteed, ensuring that China's food supply remained firmly in our own hands.

Fifth, we had seen more sustained development. In the five years, China made significant progress in promoting ecological civilization. Effective progress had been made in the transformation of the economy and society toward green and low-carbon development. The new energy industry had flourished, gradually becoming a competitive industry for China. After unremitting efforts, China's new energy vehicle (NEV) industry had taken the lead globally. In 2023, the production of NEVs reached 9.458 million units, an increase of 7.9 times compared to 2018. Production had been the highest in the world for nine consecutive years, accounting for over 60% of the global total. China had broadly established eco-friendly methods of work and life. In 2023, solar cells (photovoltaic cells) and wind turbines generated 650 million kilowatts and 140 million kilowatts, respectively, increases of 5.9 times and 8.4 times compared to 2018. The proportion of clean energy consumption such as natural gas, hydropower, nuclear power, wind power and solar power continuously increased, providing new support for sustainable economic development. Thank you.

Korea JoongAng Daily:

The fourth national economic census showed a decrease in employment in the secondary sector and an increase in the tertiary sector, with manufacturing, construction, and wholesale and retail industries being the largest employers. What employment distribution trends were revealed in the fifth national economic census? And what changes have occurred in China's job market since the COVID-19 pandemic? Thank you.

Kang Yi:

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

Wang Guanhua:

Your questions are related to the changes in China's job market over the five years. We know that employment is the most basic component of the people's well-being, affecting the lives of tens of thousands of households, and is also related to the overall socioeconomic development. In recent years, various regions and departments have deeply implemented the decisions and arrangements of the CPC Central Committee and the State Council, thoroughly implemented the employment-first strategy, strengthened the policy orientation of prioritizing employment, and increased assistance to disadvantaged groups. Compared with the fourth national economic census, the number of employees in the secondary and tertiary industries in China continued to increase, and there were some new changes in the employment structure. The capacity of new industries and new business formats to create jobs has been enhanced, providing important support for economic development and improvements in people's living standards. The main characteristics are as follows:

First, if we look at the total numbers, employment in the secondary and tertiary industries is steadily increasing. In recent years, despite facing multiple risks and challenges, employment in the secondary and tertiary industries has continued to increase thanks to economic recovery, improved economic structure, and policies to stabilize employment. At the end of 2023, legal entities in China's second and tertiary industries employed 429 million people, up by 45.75 million compared to the end of 2018, representing a growth rate of 11.9%. Increased employment in the secondary and tertiary industries has created favorable conditions for maintaining overall stability in employment. For the five years from 2019 to 2023, the average surveyed urban unemployment rates in China were 5.2%, 5.6%, 5.1%, 5.6% and 5.2%, respectively. Although there were some fluctuations over the years, since 2023, with economic recovery and development, overall employment has been generally stable.

Second, from a structural perspective, employment in the secondary industry has decreased, while employment in the tertiary industry has increased. The main reason is industrial restructuring. In recent years, China's industrial structure has been continuously adjusted, and the proportion of the tertiary industry, or the service industry, in the gross domestic product has been increasing. A key characteristic of the service industry is its strong ability to create employment. Therefore, the industrial structure adjustment has also brought about corresponding changes in employment structure, which is in line with the general principles of economic and social development. According to the data from the fifth national economic census, at the end of 2023, legal entities in the secondary industry employed 164 million people, a decrease of 8.26 million compared to the end of 2018, or down by 4.8%. However, employment in the tertiary industry reached 265 million, an increase of 54.01 million, up by 25.6%.

At the same time, we should also be aware that technological progress and changes in social division of labor are also important factors affecting the changing employment in the secondary and tertiary industries. In recent years, China's industrial production efficiency has greatly improved. In the context of the advanced and intelligent development of the manufacturing industry, many industrial enterprises have improved their production efficiency through intelligent transformation, which has also led to adjustments in the workforce. At the same time, with the development of the internet and refinements in the social division of labor, some industrial production processes, such as design and testing, have also been separated and become part of the tertiary industry. Some employees in the secondary industry have transitioned to the tertiary industry, which has also brought about changes in the employment structure.

Third, the emerging service industry has provided new opportunities for expanding employment. In the five years, new business forms and models in the service industry had continued to grow in China. Emerging service industries, such as technology services, information services and business services, had developed rapidly, playing an increasingly important role in job creation. According to the data from the fifth national economic census, by the end of 2023, the development of the digital economy had led to rapid development of information services and an increase in the number of employees in related industries. The number of employees in the information transmission, software and information technology services increased by 5.07 million compared to the end of 2018. At the same time, with industrial transformation and upgrading, the demand for business services continues to grow, which has also led to an increase in the number of people working in those industries. By the end of 2023, the number of employees in the leasing and business services industry increased by 16.17 million compared to the end of 2018. At the same time, we should also be aware that with improvements in quality and effectiveness of technological innovation, businesses are more active in R&D and innovation. As a result, the number of people working in scientific research and the technical service industry had increased by 5.17 million over the five years.

Overall, in the five years, employment in the secondary and tertiary industries steadily increased. Against the backdrop of industrial restructuring, there had been new changes in the composition of the workforce, which was in line with the general principles of socioeconomic development. Of course, we should also be aware that structural employment contradictions are still relatively prominent, and some groups still face some difficulties and challenges in employment. Looking forward, we will continue to prioritize promoting high-quality and full employment, strengthen employment support policies for key groups, and make every effort to stabilize employment, benefit the people and promote development. Thank you.

Beijing Youth Daily:

The results of the revised GDP for 2023 were announced just now. What impact will this have on the economic growth rate for 2024? In addition, after the revision of the national data, will the economic data of each province, autonomous region and municipality for 2023 also be revised accordingly? Thank you.

Kang Yi:

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

Lin Tao:

Thank you for your questions. Regarding the issue of GDP data revision, as Mr. Kang just mentioned in his briefing, the NBS revised the preliminary GDP figures for 2023 based on the results of the fifth national economic census and data from relevant departments, in accordance with international practices and relevant provisions of the system of national economic accounts. After the data revision, the total GDP for 2023 increased, and the proportion of the tertiary industry increased. This revision of GDP includes two aspects: one is based on the data from the fifth national economic census, and the other is based on the reform of the accounting method for urban residents' self-owned housing services. Among them, the revision based on the data of the fifth national economic census is the smallest compared with revisions of the previous four national economic censuses, reflecting that with continued improvements to the statistical survey system, the quality of the country's regular annual statistical data is constantly improving. Regarding the questions raised by the reporter just now, I would like to answer from the following three aspects:

First, regarding the GDP data revision. Revising GDP data is an internationally accepted practice and has long been a working practice of the Chinese government regarding statistics. Whenever there are changes or updates to the basic data, accounting methods or classification standards required for GDP calculation, it is necessary to revise the historical GDP data. Everyone knows that GDP accounting requires a large amount of basic data. The more comprehensive the basic data, the higher the quality, and the higher the accuracy of GDP data, the better it can reflect the actual situation of national economic development. According to China's current GDP accounting system, the annual GDP accounting is divided into two steps: preliminary accounting and final verification. Preliminary accounting puts more focus on timeliness. It is mainly derived using specialized statistical progress information and departments' administrative records. The preliminary accounting of GDP for the previous year is announced at the beginning of each year. The final verification involves revising the preliminary accounting results using more abundant basic data, such as annual reports of specialized information, departmental financial statistics and fiscal accounts. In the year of an economic census, the preliminary GDP calculation figures for that year will be revised mainly based on the more comprehensive, accurate and detailed basic data obtained from the economic census. At the same time, the historical GDP data will also be revised to ensure the historical comparability of GDP data. We will release detailed data about this revision on the official website of the NBS in the near future.

Second, regarding the impact of the revision of the 2023 GDP accounting data on the GDP growth rate in 2024. In general, after verifying the GDP for 2023, the total GDP in 2024 will change, but the 2024 GDP growth rate accounting will not be significantly affected. According to China's current GDP accounting method, the preliminary calculation of GDP is mainly extrapolated by the speed of growth of relevant indexes. In other words, when calculating the GDP for 2024, it is based on the revised GDP for 2023, using the growth rate of different industry-related indicators. That is, the growth rate of value added of each industry in 2024 is first calculated, and then the total value added in 2024 is calculated based on this growth rate and the total value added from the previous year. So, although the revised GDP for 2023 will change in terms of total amount, it will not significantly impact the GDP growth rate for 2024. Judging from the past four economic censuses, data revisions have not had a significant impact on the GDP growth rate in subsequent years.

Third, we are also working intensively on the revision of GDP for each region. At present, the NBS is revising the preliminary calculation figures and historical data of the gross regional product for 2023 of each province, autonomous region and municipality based on the data of the fifth national economic census. The revision will take some time due to the relatively large workload. After the revision, the final verified figures of GDP for each province, autonomous region and municipality in 2023 will be authorized by the NBS and announced by the statistical bureaus of each province, autonomous region and municipality when they release the preliminary calculated figures of regional GDP for the whole year of 2024 in January 2025. The historical revised data on GDP of each province, autonomous region and municipality will be released to the public via the NBS database and the statistical yearbooks of each region in the second half of 2025. Thank you.

21st Century Business Herald:

China's economy has entered a stage of high-quality development. Judging from the results of the fifth national economic census, what achievements have been made in high-quality economic development in the country? What are the specific performances and highlights?

Kang Yi:

Thank you for your questions. High-quality development is the first and foremost task in building China into a modern socialist country in all respects. Over the five years, the whole country has unwaveringly focused on the primary task of high-quality development, fully and faithfully implemented the new development philosophy on all fronts, and accelerated the construction of a new development paradigm. We have not only successfully withstood various internal and external risks and challenges and maintained sustained economic growth, but also taken solid steps and achieved positive results in transforming the growth model, improving the economic structure, and fostering new drivers of growth. The data from the fifth national economic census fully demonstrates the significant achievements made by the country in high-quality development. These achievements are not only the result of our collective efforts and perseverance over the five years, but also give us the confidence to continue moving forward steadily in the future. In summary, there are several achievements and highlights.

First, new achievements have been made in building an innovative nation. In the five years, the country thoroughly implemented the innovation-driven development strategy, led industrial innovation with sci-tech innovation, strengthened the position of enterprises as the main body of innovation, vigorously developed new industries and new momentum, and effectively stimulated the innovative vitality and creative potential of the whole of society. R&D investment has continued to increase. In 2023, the full-time equivalent of R&D personnel in legal entities of industrial enterprises above designated size increased by 61.6% compared with 2018; R&D expenditure increased by 61.9%, and the ratio of R&D expenditure to operating income reached 1.54%, an increase of 0.31 percentage point from 2018. A large number of innovation achievements have emerged. In 2023, the number of patent applications by legal entities of industrial enterprises above designated size was 1.566 million, of which 614,000 were invention patent applications, increasing by 63.6% and 65.1%, respectively, compared with 2018. A report by the World Intellectual Property Organization (WIPO) shows that the country's global innovation index ranking jumped to 12th in 2023, up five places from 2018. In 2024, we moved up another place to 11th in the world.

Second, coordinated development has taken on a new pattern. Over the five years, the country has continued to deepen supply-side structural reform, promoted coordinated development between urban and rural areas, thoroughly implemented regional coordinated development strategies and major regional strategies, adjusted and optimized the economic structure, and improved the balance and coordination of development. The industrial structure is moving toward the medium- and high-end. At the end of 2023, the operating income of high-tech manufacturing enterprises above designated size accounted for 19.1% of manufacturing enterprises above designated size, an increase of 2.4 percentage points over 2018. Major regional strategies have been effectively implemented, and economic agglomeration effects have continued to emerge. By the end of 2023, the number of legal entities in the secondary and tertiary industries in the Beijing-Tianjin-Hebei region, the Yangtze River Economic Belt, the Yangtze River Delta region, and the nine provinces and regions along the Yellow River Basin had increased by 27.5%, 56.6%, 50.2% and 60.8%, respectively, compared with the end of 2018; and the number of employees increased by 6.1%, 12.1%, 7.6% and 15.5% respectively.

Third, the comprehensive green transformation has shown new prospects. In the five years, the concept of green development has become more popular, circular development and low-carbon development have made solid progress, green production and lifestyles have been formed at a faster pace, and comprehensive green transformation has achieved remarkable results. Thanks to its supersized market, complete industrial systems, abundant human resources and sufficient market competition, China's new energy industry is developing vigorously, and product performance and quality are constantly improving. It is gradually becoming a new competitive industry for China. In 2023, the production of NEVs accounted for more than 60% of the world's total, making a sustainable contribution to global green development. The output of green products, such as lithium-ion power batteries for automobiles, monocrystalline silicon and polycrystalline silicon, has grown rapidly, injecting "green momentum" into the high-quality development of the economy.

Fourth, new progress has been made in ensuring and improving people's well-being. Over the five years, we have always regarded employment as the top priority for improving people's well-being, adhered to the employment-first policy, improved basic public services, continuously expanded job opportunities, and effectively ensured people's well-being. According to the census, the number of employees in legal entities in the secondary and tertiary sectors nationwide reached 420 million at the end of 2023, up by 11.9% compared to the end of 2018. Among them, the proportion of those employed in the tertiary industry is steadily increasing, and the largest increases in employment were all in the tertiary sector. Industries that are closely associated with people's daily lives, such as resident services, and cultural and recreational industries, are also developing rapidly, better meeting the needs of residents and improving their living standards. At the end of 2023, there were a total of 876,000 corporate units in the resident services, repair and other services nationwide, an increase of 82.9% compared to the end of 2018. There were a total of 817,000 corporate units in the culture, sports and recreation sectors, an increase of 44.1%.

In addition, over the five years, we have continuously promoted high-standard opening up, fostered a first-rate business environment that is market-oriented, law-based and internationalized. We have comprehensively relaxed restrictions on foreign investment access in the manufacturing sector, expanded market access in service sectors, such as telecommunications and health care, steadily expanded institutional opening up, and further unlocked more drivers of development.

Of course, we are also aware that achieving high-quality development is a complex systematic project that requires perseverance, unremitting efforts and continuous progress. We must adhere to the general principle of pursuing progress while ensuring stability, remain unwavering in our pursuit of high-quality development, and not cease in reform or opening up, in order to form synergy that promotes high-quality development. Thank you.

Beijing News:

What plans are there for developing and utilizing the census data? And how has this census helped promote statistical development and reform? Thank you.

Lin Tao:

Thank you for your questions. These questions are regarding the exploration and utilization of the results of the economic census, which is also the focus of our economic census work going forward. The fifth national economic census is a major survey of the national conditions and strength carried out in the new era and on a new journey. The census has carried out input-output surveys, incorporated new investigative areas such as the digital economy, and actively adopted new technologies and methods. It comprehensively collected information on units in the secondary and tertiary industries, and developed a clear picture of these industries. It reflects the process of high-quality development to better grasp the industrial structure of the national economy. It provides important support for the comprehensive and objective review and assessment of the implementation of the 14th Five-Year Plan (2021-2025), the scientific formulation of the 15th Five-Year Plan (2026-2030), and the national plans for medium- and long-term development.

In order to further harness results from this census, the NBS will deeply implement the guiding principles of third plenary session of the 20th CPC Central Committee, actively promote the development of data from the fifth national economic census, continuously improve the statistical investigation system, and accelerate the reform of statistical modernization. In promoting statistical reform and development, our main tasks are as follows:

First, we will use the census results to improve the statistical basic unit directory, provide a complete sampling frame and structural data for various sampling surveys, provide basic data for measuring and accounting for new economic and new field data, and promote improvements to the statistical system and statistical modernization reforms.

Second, we will further discover the specific methods of new product and service development and understand new business forms and models through analyzing the data from the fifth national economic census. At the same time, we will also revise and improve the current "Industrial Classification for National Economic Activities" and "Classification Annotations for National Economic Activities" in conjunction with the revision of international standards, refining economic activities in emerging fields and laying a solid foundation for strengthening the coverage of new economic areas in national statistics.

Third, we will use the results of the fifth national economic census to carry out the accounting and related trial calculations of industrial activity units at the place where the activity occurs, actively promote the statistics of the place where the business entity's activities occur, and further improve the monitoring system of routine statistics.

Fourth, we will carefully review the experience and practices gained from the fifth national economic census, strengthen communication and coordination with relevant departments, further understand the characteristics of digital economic development in various sectors, and improve the statistical monitoring of the digital economy.

At present, we are moving faster to edit and produce the China Economic Census Yearbook (2023) and other census materials to provide more detailed census data and facilitate economic and social development. Next, we will also focus on key areas of economic and social development and statistical reform, such as high-quality economic development, new quality productive forces, and the digital economy. We will organize private sectors, such as scientific R&D institutes, colleges and universities, make full use of the data from the fifth national economic census, conduct in-depth subject research and analysis, and release relevant research results successively. At the same time, we will expand census data sharing and services, provide information services on census data to relevant government departments and all sectors of society in accordance with the laws and regulations, and promote the use of census data for the benefit of the people. Thank you.

Shou Xiaoli:

Let's continue. Due to the limited time, we will take two final questions.

Economic Daily:

China has been the world's largest manufacturing country for many years. How do the results of this census reflect the development of China's industrial economy over the five years? What are the new features in terms of transformation and upgrading? Thank you.

Kang Yi:

Your questions are concerning industrial issues. Industry is an important mainstay of the real economy and the core driving force in accelerating the formation of new quality productive forces. Over the five years, China has taken solid steps toward the key task of new industrialization. We have integrated the construction of China's strength in manufacturing with the development of the digital economy, industrial informatization and other aspects, improving the modernization level of the industrial system, and achieving increases in the quantity and quality of the industrial economy. The trend toward high-end, intelligent and green development is quite clear. To sum up, there are several characteristics:

First, our industrial strength has developed and grown. In the five years, the advantages of our complete industrial system and strong supporting capabilities have continued to emerge. Many industrial enterprises have broken new ground and grown, more new forces have continued to join, and the number of industrial enterprises and their efficiency have steadily increased. At the end of 2023, there were a total of 4.236 million industrial corporate legal entities nationwide, an increase of 22.7% over the end of 2018. The assets of these industrial corporate legal entities totaled 201 trillion yuan, an increase of 44.3%. The operating income of industrial enterprises reached 152.4 trillion yuan, an increase of 28.6% over 2018. As the main body of the industrial economy, China's manufacturing industry has ranked first in the world for 14 consecutive years, accounting for approximately 30% of the global share.

Second, the manufacturing sector is moving toward high-end development. In the five years, high-end industries represented by equipment manufacturing and high-tech manufacturing have accelerated their development, driving continuous optimization and upgrading of the industrial structure. By the end of 2023, there were 192,000 and 53,000 legal entities engaged in China's equipment manufacturing and high-tech manufacturing above designated size, respectively. These figures represent growth of 44.5% and 57.4%, respectively, compared to the end of 2018, with their share of total industrial enterprises above the designated size increasing by 3.5 percentage points and 1.8 percentage points, respectively. The operating income of corporate units in the equipment manufacturing and high-tech manufacturing above designated size increased by 36.8% and 43.1% over 2018, significantly higher than the average level of all industrial enterprises above designated size. At the same time, prospective plans are being accelerated in terms of planning and implementation, promoting rapid growth of strategic emerging industries. At the end of 2023, the number of industrial enterprises with legal person status engaged in the production of strategic emerging industries nationwide reached 96,000, an increase of 45% compared to the end of 2018. The proportion of these industrial enterprises with legal person status accounted for 19.5% of all industrial enterprises with legal person status, an increase of 1.8 percentage points compared to the end of 2018.

Third, steps to promote intelligent development were accelerated. In the five years, we have actively integrated digital technology into the real economy, vigorously developed the digital industry, transforming traditional industries with digital technologies. Technologies such as cloud computing, Internet of Things, artificial intelligence and the industrial internet have been rapidly advancing, continuously empowering the development of the industrial economy. By 2023, more than half of China's industrial enterprises above designated size had applied digital technology in all aspects of production and operation. The digital product manufacturing industry has shown strong vitality. By the end of 2023, there were 262,000 corporate units and 13.372 million employees in China's digital product manufacturing sector. The operating income reached 20.5 trillion yuan, accounting for 42.3% of the corporate units in the core industries of the digital economy.

Fourth, sustained efforts were made in green transformation. China has continuously promoted the green and low-carbon transformation of the manufacturing sector, increasing the clean and low-carbon transformation, vigorously developing green productive forces, and bringing more green technologies and products to the market. It is gradually forming competitive industries, which not only help achieve the "dual carbon" goals, but also inject new momentum into high-quality economic development. In 2023, the production of new energy products such as solar panels and wind turbines increased by 4.9 times and 7.4 times, respectively, compared to 2018, and the production of NEVs also saw a significant surge.

Over the five years, China's industrial economy has forged ahead, demonstrating both quantitative growth and qualitative improvements. The advantages of a comprehensive industrial system have become increasingly prominent, and the international competitiveness of "Made in China" has steadily been strengthened. However, on the whole, China's industrial development remains at a critical juncture of transitioning from a large industrial base to a strong industrial powerhouse, with significant hurdles to overcome. Shortcomings still exist, particularly in key and core technologies, while production and operational difficulties persist for industrial enterprises, especially micro and small enterprises. To address these challenges, we must continue advancing new industrialization, deeply integrate sci-tech innovation with industrial innovation, accelerate the development of new quality productive forces, and consistently promote the high-quality development of the industrial economy. Thank you.

Shou Xiaoli:

Last question, please.

Yicai:

This census is the first to include content related to the digital economy. What do the results of the census show in terms of the current development status of China's digital economy? And what new achievements have been made? Thank you.

Wang Guanhua:

Thank you for your questions. Your question is regarding the development of the digital economy, and this is the first time such data has been included in the national economic census. In recent years, the NBS has continuously advanced the statistical monitoring and accounting of the digital economy. For the first time, the fifth national economic census included survey results on the digital economy. The census data shows that China's digital economy is thriving, with steady progress being made in digital industrialization and the digital transformation of industries, injecting new momentum into economic and social development. Specifically, the following key features can be observed:

First, significant progress has been made in the digitalization of industries. Digital industrialization, which refers to the core industries of the digital economy, includes digital product manufacturing, digital product services, digital technology applications and digital factor-driven industries. These sectors form the foundation of digital economic development. Over the five years, the scale of digital product manufacturing, services and applications has steadily expanded, and the quality of development has consistently improved. To briefly provide some data, in 2023, China had 2.916 million legal entities in the core industries of the digital economy, achieving operating revenue of 48.4 trillion yuan, accounting for 10.9% of the operating revenue of all legal entities in the secondary and tertiary industries.

Second, digital manufacturing and digital applications have clear advantages. Among the core industries of the digital economy, the digital product manufacturing sector makes up a relatively high share of operating revenue, accounting for more than 40%. Meanwhile, the number of enterprises in the digital technology application sector is relatively large, approaching 50%. This reflects the scale advantage of China's digital product manufacturing industry and the dynamic development of its digital technology application sector. According to the fifth national economic census, in 2023, there were 262,000 legal entities in the digital product manufacturing sector, accounting for 9% of all enterprises in the core digital economy industries. The operating revenue reached 20.5 trillion yuan, accounting for 42.3%. In the digital technology application sector, there were 1.43 million legal entities, accounting for 49% of the total, and operating revenue amounted to 14 trillion yuan, accounting for 29%.

Third, the digital economy in the eastern region is developing well. From the perspective of regional characteristics in digital economic development, the eastern region leads the country due to its favorable infrastructure, abundant application scenarios and advanced development. In 2023, the number of legal entities in the core industries of the digital economy in the eastern, central, western and northeastern regions accounted for 62.2%, 20.2%, 13.6% and 4.0% of the national total, respectively. The operating revenue of these four regions accounted for 73.0%, 13.8%, 11.9% and 1.3%, respectively. These figures show that the eastern region has a higher share than other regions and is a leading force in the development of the digital economy.

Fourth, the digital transformation of industries is steadily progressing. Industrial digitalization, which refers to the integration of digital technologies into traditional industries, reflects the fusion of digital technology and the real economy. In recent years, through the application of digital technologies such as cloud computing, Internet of Things, artificial intelligence and the industrial internet, industries have been undergoing transformation and upgrading, with improvements in production efficiency. This trend is becoming a new highlight in the development of China's digital economy. According to the fifth national economic census, in 2023, 47% of enterprises above designated size applied digital technologies like cloud computing, Internet of Things, artificial intelligence and the industrial internet. By industry, in the secondary sector, 54.1% of enterprises above designated size adopted digital technologies, including 41.6% applying cloud computing, 40.1% using the industrial internet and 32.1% utilized the Internet of Things. In the tertiary sector, 41.5% of enterprises above designated size adopted digital technologies, with 34.5% using cloud computing and 22.2% utilizing the Internet of Things.

The above four aspects reflect the current situation and characteristics of China's digital economy development as indicated by the fifth national economic census. I hope this answers your question.

Shou Xiaoli:

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

Translated and edited by Yang Xi, Yang Chuanli, Liu Sitong, Liu Jianing, Guo Yiming, Liu Caiyi, Mi Xingang, Huang Shan, Wang Qian, Wang Yanfang, Yan Bin, Wang Yiming, Li Huiru, David Ball. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speaker:

Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and head 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:

Dec. 16, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference. This is a regular briefing on China's economic data. Today, we are joined by Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and head of the Department of Comprehensive Statistics of the NBS. Mr. Fu will brief you on China's economic performance in November 2024 and then take your questions.

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

Fu Linghui:

Friends from the media, good morning. As usual, I will start by briefing you on the main economic indicators for this November and then take your questions.

The national economy saw steady recovery in November. In November, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments thoroughly implemented the decisions and arrangements of the CPC Central Committee and the State Council by upholding a general approach of pursuing progress while maintaining stability, thoroughly and faithfully implementing the new development philosophy, quickly shaping a new development paradigm, and solidly promoting high-quality development. As a result, macro policies continued to take combined effects, the industrial and service sectors saw rapid growth, employment and prices were generally stable, social expectations were effectively boosted, new quality productive forces developed steadily, and the national economy continued with the trend of recovery that started in September.

First, another bumper grain harvest for the whole year was achieved with the output reaching new heights.

The total grain output in 2024 was 1,413.0 billion jin, an increase of 22.18 billion jin over the previous year, or up by 1.6%, reaching a new height of 1.4 trillion jin for the first time. Specifically, the output of autumn grain totaled 1,056.9 billion jin, an increase of 15.03 billion jin over the previous year, or up by 1.4%. The output of cereal was 1,304.6 billion jin, an increase of 21.71 billion jin over the previous year, or up by 1.7%. The sown area of grain increased with the per-unit yield also rising. The sown area of grain was 1.790 billion mu, an increase of 5.258 million mu over the previous year, or up by 0.3%. The per-unit yield of grain was 394.7 kilograms per mu, increasing by 5.1 kilograms per mu, or up by 1.3%.

Second, industrial production growth accelerated and equipment manufacturing and high-tech manufacturing grew quickly.

In November, the total value added of industrial enterprises above designated size grew by 5.4% year on year, 0.1 percentage point faster than the previous month, or up by 0.46% month on month. In terms of sectors, the value added of mining went up by 4.2% year on year, manufacturing up by 6.0% and the production and supply of electricity, thermal power, gas and water up by 1.6%. The value added of equipment manufacturing increased by 7.6% year on year, 1.0 percentage point faster than the previous month; and that of high-tech manufacturing increased by 7.8%, 2.4 percentage points faster than industrial enterprises above designated size. In terms of ownership, the value added of state holding enterprises increased by 3.9% year on year; that of share-holding enterprises increased by 6.0%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan increased by 3.4%; and that of private enterprises increased by 4.5%. In terms of products, the production of new energy vehicles, industrial robots and integrated circuits grew by 51.1%, 29.3% and 8.7% year on year, respectively. In the first 11 months, the total value added of industrial enterprises above designated size grew by 5.8% year on year. In November, the Manufacturing Purchasing Managers’ Index stood at 50.3%, 0.2 percentage point higher than the previous month; the Production and Operation Expectation Index was 54.7%, up by 0.7 percentage point. In the first 10 months, the total profits made by industrial enterprises above designated size were 5,868.0 billion yuan, down by 4.3% year on year.

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

In November, the Index of Services Production grew by 6.1% year on year. Specifically, the Index of Services Production of information transmission, software and information technology services, leasing and business services, and financial intermediation grew by 9.3%, 9.3% and 8.8% year on year, respectively, or 3.2 percentage points, 3.2 percentage points and 2.7 percentage points faster than the Index of Services Production; while that of real estate, and transport, storage and postal services grew by 2.9% and 6.0%, respectively, 2.1 percentage points and 1.3 percentage points faster than that of the previous month. In the first 11 months, the Index of Services Production grew by 5.1% year on year. In the first 10 months, the business revenue of service enterprises above designated size grew by 7.4% year on year. In November, the Business Activity Index for Services was 50.1%, the same level as the previous month, and the Business Activity Expectation Index for Services was 57.3%, 1.1 percentage points higher than the previous month. Specifically, the Business Activity Index for industries like telecommunications, broadcast, television and satellite transmission services, internet software and information technology services, monetary and financial services, capital market services and insurance stayed within the high expansion range of 55.0% and above.

Fu Linghui:

Fourth, market sales continued to increase and trade-in goods showed good sales.

In November, the total retail sales of consumer goods reached 4,376.3 billion yuan, increasing by 3.0% year on year, or up by 0.16% month on month. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 3,759.6 billion yuan, up by 2.9% year on year; and that in rural areas reached 616.7 billion yuan, up by 3.2%. Grouped by consumption patterns, the retail sales of goods were 3,796.1 billion yuan, up by 2.8%; and the income of catering was 580.2 billion yuan, up by 4.0%. The effects of trade-in of consumer goods continued to manifest, with the retail sales of household appliances and audiovisual equipment, furniture, automobiles, building and decoration materials by enterprises above designated size growing by 22.2%, 10.5%, 6.6% and 2.9%, respectively. In the first 11 months, the total retail sales of consumer goods reached 44,272.3 billion yuan, up by 3.5% year on year. Online retail sales reached 14,030.8 billion yuan, up by 7.4% year on year. Specifically, the online retail sales of physical goods were 11,805.9 billion yuan, up by 6.8%, accounting for 26.7% of the total retail sales of consumer goods. In the first 11 months, the retail sales of services grew by 6.4% year on year.

Fifth, investment in fixed assets increased steadily and investment in manufacturing and high-tech industries grew quickly.

In the first 11 months, investment in fixed assets (excluding rural households) reached 46,583.9 billion yuan, up by 3.3% year on year; and investment in fixed assets was up by 7.4% with investment in real estate development deducted. Specifically, investment in infrastructure grew by 4.2% year on year, that in manufacturing grew by 9.3%, and that in real estate development declined by 10.4%. The floor space of newly-built commercial buildings sold was 861.18 million square meters, down by 14.3% year on year, with the decline narrowing by 1.5 percentage points compared with the first 10 months; the total sales of newly-built commercial buildings were 8,512.5 billion yuan, down by 19.2%, with the decline narrowing by 1.7 percentage points. By industry, investment in the primary industry went up by 2.4% year on year, that in the secondary industry was up by 12.0%, and that in the tertiary industry was down by 1.0%. Private investment declined by 0.4% year on year, or increased by 6.2% with investment in real estate development deducted. Investment in high-tech industries grew by 8.8% year on year, of which investment in high-tech manufacturing and high-tech services grew by 8.2% and 10.2%, respectively. In terms of high-tech manufacturing, investment in manufacturing of aerospace vehicles and equipment and in manufacturing of electronic and communication equipment grew by 35.4% and 8.8%, respectively. In terms of high-tech services, investment in professional technical services and in e-commerce services grew by 27.9% and 12.5%, respectively. In November, investment in fixed assets (excluding rural households) increased by 0.10% month on month.

Sixth, imports and exports of goods maintained growth and the trade structure continued to be optimized.

In November, the total value of imports and exports of goods was 3,750.6 billion yuan, up by 1.2% year on year. The value of exports was 2,221.7 billion yuan, up by 5.8%, and the value of imports was 1,528.9 billion yuan, down by 4.7%. In the first 11 months, the total value of imports and exports of goods was 39,786.1 billion yuan, up by 4.9% year on year. The total value of exports was 23,038.3 billion yuan, up by 6.7%. The total value of imports was 16,747.7 billion yuan, up by 2.4%. In the first 11 months, the imports and exports in general trade went up by 3.7%, accounting for 64.1% of the total value of imports and exports. Imports and exports by private enterprises went up by 8.7%, accounting for 55.3% of the total value of imports and exports, and 2.0 percentage points higher than that of the same period last year. Exports of mechanical and electrical products went up by 8.4%, accounting for 59.5% of the total value of exports.

Fu Linghui:

Seventh, employment was generally stable and urban surveyed unemployment rate maintained the same level as the previous month.

In the first 11 months, the urban surveyed unemployment rate averaged 5.1%, 0.1 percentage point lower than that of the same period last year. In November, the urban surveyed unemployment rate was 5.0%, the same as the previous month. The surveyed unemployment rate of population with local household registration was 5.2% and that of population with non-local household registration was 4.6%, among which, the rate of the population with non-local agricultural household registration was 4.4%. The urban surveyed unemployment rate in 31 major cities was 5.0%, the same as the previous month. The employees of enterprises worked an average of 48.9 hours per week.

Eighth, consumer prices increased slightly and the decline of producer prices for industrial products narrowed year on year.

In November, the consumer price index (CPI) increased by 0.2% year on year, or decreased by 0.6% month on month. Grouped by commodity categories, prices for food, tobacco and alcohol were up by 0.9% year on year; clothing up by 1.1%; housing down by 0.1%; articles and services for daily use down by 0.3%; transportation and communication down by 3.6%; education, culture and recreation up by 1.0%; medical services and health care up by 1.1%; and other articles and services up by 5.2%. Among the prices for food, tobacco and alcohol, the price for grain went down by 1.1%, fresh fruits were down by 0.3%, fresh vegetables were up by 10.0%, and pork was up by 13.7%. The core CPI excluding the prices of food and energy went up by 0.3% year on year, 0.1 percentage point higher than that of the previous month. In the first 11 months, the CPI increased by 0.3% year on year.

In November, the producer prices for industrial products went down by 2.5% year on year, the decline narrowing by 0.4 percentage point compared with the previous month; or up by 0.1% month on month. The purchasing prices for industrial producers went down by 2.5% year on year, the decline narrowing by 0.2 percentage point; or down by 0.1% month on month. In the first 11 months, producer prices for industrial products and purchasing prices for industrial producers dropped by 2.1% and 2.2% respectively year on year.

Generally speaking, as the existing and incremental policies continued to take combined effects in November, the national economy was generally stable with steady progress, accumulating more positive changes. However, we should be aware that the external environment is becoming increasingly complicated, domestic demand is insufficient, some enterprises have encountered difficulties in production and operation, and the foundation for continuous economic recovery and growth needs to be further consolidated. In the next stage, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirit of the Central Economic Work Conference, adhere to the general principle of pursuing progress while ensuring stability, fully and faithfully apply the new development philosophy on all fronts, accelerate the efforts to create a new development pattern, and solidly advance high-quality development. We must further deepen reform comprehensively, promote high-standard opening up, expand domestic demand, stabilize expectations and boost vitality, so as to promote sustained economic recovery and growth, and ensure the successful achievement of major annual economic and social development targets. Thank you.

Xing Huina:

The floor is now open for questions. Please state the name of the news outlet you work for before asking your question.

CCTV:

How do you view the economic performance in November? In general, what are the highlights and positive changes shown in the economic performance in November? Thank you.

Fu Linghui:

Thank you for your questions. Under the combined effects of macroeconomic policies continuing to unfold, in November, production grew rapidly, demand continued to expand, employment and prices remained generally stable, the real estate and stock markets became more active, market expectations continued to improve, new quality productive forces developed steadily, and economic operations continued to recover. Specifically, the effects of macroeconomic policies can be summarized by a few distinguishing features: increased production, rising demand, stable employment, a rebounding market and improved quality.

"Increased production" primarily refers to the continued recovery of service and industrial sectors. From the perspective of industry, driven by policies related to large-scale equipment renewals and trade-ins of consumer goods, industrial production has been rising steadily. In November, the value added of industries above a designated size increased by 5.4% year-on-year, up 0.1 percentage point from the previous month. The equipment manufacturing industry grew by 7.6%, expanding 1 percentage point faster than the previous month and contributing nearly 50% to the growth in the value added of industries above a designated size. The service sector sustained its recovery trend, thanks to the accelerated turnover of social logistics and the implementation of policies aimed at boosting the capital market and promoting the stabilization and recovery of the real estate market. In November, the service sector production index increased by 6.1% year-on-year. Although this was slightly lower than the previous month, it remained above 6%. This growth rate was the second highest recorded this year and was significantly higher than rates seen before October. The real estate, transportation, storage and postal industries' production indexes increased by 2.1 percentage points and 1.3 percentage points, respectively, compared to the previous month.

"Rising demand" primarily refers to the continued expansion of both consumption and investment. In terms of consumption, although the growth rate of total retail sales for consumer goods in November declined compared to the previous month due to the early launch of the "Double Eleven" online shopping festival, it was still faster than the average growth rate in the third quarter, with the momentum of consumption recovery remaining unchanged. Driven by the policy for consumer goods trade-ins, the sales of related products continued to grow rapidly. In November, the retail sales of home appliances, audiovisual equipment and furniture by units above the designated size maintained double-digit growth. In terms of investment, although investments in real estate declined, overall investment remained stable growth due to the effectiveness of policies provided to implement major national strategies, build security capacity in key areas and promote large-scale equipment renewals. From January to November, fixed asset investment increased by 3.3% year-on-year, remaining largely stable for four consecutive months. Manufacturing investment grew by 9.3%, significantly outpacing overall investment growth and providing strong support for overall investment.

"Stable employment" primarily refers to the overall stability of the employment situation. With the steady rebound of the economy and the implementation of employment support policies, urban employment remained generally stable and improvements were observed in employment of key population groups. In November, the national surveyed urban unemployment rate was 5%, unchanged from the previous month and at a relatively low level for the year. The surveyed unemployment rate for rural migrant workers was 4.4%, down 0.3 percentage point from the previous month, while the surveyed unemployment rate for young people aged 16-24 also showed a decline.

"A rebounding market" primarily refers to the improvements in market supply-demand dynamics and expectations. An important indicator of changes in market supply and demand dynamics is commodity pricing. With influence from high temperatures and declining fresh food prices, the year-on-year growth rate of the consumer price index (CPI) in November saw a slight decrease compared to the previous month. However, the core CPI, which excludes food and energy, rose at a faster pace compared to the previous month. In November, the core CPI increased by 0.3% year-on-year, up by 0.1 percentage point compared to October, marking the second consecutive month for growth rate expansion. At the same time, in November, the year-on-year decline of industrial producer prices narrowed, while the month-on-month change shifted from a decline to an increase, indicating positive changes in the supply-demand dynamics of industrial products. From the perspective of expectations, in November, real estate sales rebounded, stock market transactions were relatively active, the manufacturing PMI continued to rise and market expectations steadily improved, creating favorable conditions for economic recovery and growth.

"Improved quality" primarily refers to continuous improvement in economic operations. Localities and departments strengthened innovation-driven initiatives, actively developed the digital economy, and accelerated the green transition. All these efforts gradually paid off. The high-tech industry experienced relatively strong growth. From January to November, the added value of high-tech manufacturing industries above the designated size increased by 9% year-on-year, significantly outpacing the growth of industries above the designated size. Investment in high-tech industries grew by 8.8%, noticeably faster than the growth of total investment. The digital economy developed positively, and, as digital transformation continued to intensify, the production of digital products as well as the provision of digital services demonstrated relatively good growth momentum. In November, the added value of integrated circuit manufacturing increased by 20.7% year-on-year, while the production index for the information transmission, software and information technology service industries grew by 9.3%, all maintaining robust growth. The green transition was further promoted. Innovation and development in China's new energy sector have been effectively advanced, and the market competitiveness of green products continues to improve. In November, the output of new energy vehicles and solar cell products increased by 51.1% and 10.9% year-on-year, respectively, becoming key highlights of the green transition.

In general, with the effective implementation of macroeconomic policies, the national economy rebounded steadily in November, the foundation for stability was further consolidated, the momentum for progress was strengthened, and positive factors continued to increase. However, we must also recognize that the international environment is becoming increasingly complex and uncertain, domestic effective demand remains insufficient, and some companies are facing operational challenges. In the next stage, we will conscientiously implement the guiding principles of the Central Economic Work Conference, adopt more proactive and effective macroeconomic policies, expand domestic demand, accelerate the integrated development of scientific and technological innovation with industrial innovation, promote sustained economic recovery and growth, and effectively safeguard and improve people's livelihoods. Thank you.

Cover News:

The package of incremental policies has been in place for some time. What's your take on the effects of these policies, and have we met policy expectations? Thank you.

Fu Linghui:

Thank you for your question. There is also a lot of concern regarding the policy effects. With the effective implementation of existing policies and the accelerated rollout of a package of incremental policies, the combined effects of these measures continue to unfold, driving the expansion of domestic demand, promoting commodity production and effectively boosting market confidence. Since October, major economic indicators have rebounded significantly, new growth drivers have continued to strengthen, high-quality development has been steadily advanced and economic operations have shown positive changes. It can be said that both existing policies and incremental policies have played a significant role in promoting economic recovery and growth. This is mainly reflected in the following aspects:

First, it boosted consumption. The impact of trade-in policies for old consumer goods has become evident, and sales in sectors including home appliances, home furnishings, and automobiles have maintained rapid growth. In November, the retail sales of household appliances, audiovisual equipment, furniture and automobiles in units above the designated size increased by 22.2%, 10.5% and 6.6%, respectively. This had a significant impact on the growth of total retail sales of consumer goods and became an important driver for consumption growth.

Second, it stimulated investment. Driven by the construction of projects to implement major national strategies and build up security capacity in key areas and large-scale equipment renewals, investment in key areas and equipment renewals have maintained rapid growth, supporting investment expansion and enhancing medium-term and long-term economic development potential. From January to November, investment in water conservancy management increased by 40.9%; investment in electricity, heat production and supply increased by 29.6%; and investment in equipment and tools procurement increased by 15.8%, contributing 65.3% to the total investment growth. This surge in investment has become an important supporting factor for investment expansion.

Third, it drove production. The construction of projects to implement major national strategies and build up security capacity in key areas, coupled with policies to facilitate large-scale equipment renewal and encourage consumer goods trade-ins have effectively driven the production of related investment products and consumer goods by releasing potential market demand, thereby promoting expansion on the production side. In November, the added value of equipment manufacturing industry increased by 7.6% year-on-year, with the growth rate up by 1 percentage point from the previous month. It contributed nearly 50% to the growth of the added value of industries above the designated size. The production of durable consumer goods such as automobiles and home appliances have maintained rapid growth. In November, automobile production increased by 15.2%. The production of air conditioners and color TV sets both achieved double-digit growth.

Fourth, it activated the market. Thanks to various policies that curbed the downturn of the real estate market and boosted the capital market, the two markets saw significant improvements in October. Positive factors continued to accumulate in November, with market transactions being relatively active. In November, the sales area and sales value of newly built commercial housing achieved positive growth, particularly in key cities. The stock market was active, with stock trading and transaction values in Shanghai and Shenzhen both increasing by about 1.1 times year-on-year.

Fifth, it stabilized expectations. Various macroeconomic policies have proven effective, not only driving a recovery in production demand but also stabilizing the expectations of business entities, thereby creating favorable conditions for economic recovery. Since the beginning of this year, the Manufacturing Purchasing Managers' Index (PMI) has been below the critical point during most months. However, it has continued to rebound since September, reaching 50.3% in November and staying within the high expansion range for two consecutive months. With this, the Production and Operation Expectation Index rebounded by 0.7 percentage points from the previous month, showing an increase in companies' confidence with the future market.

In addition, during policy implementation, we focused on shoring up weak and key links, promoting green and low-carbon transformation, as well as ensuring and improving people's livelihoods. These efforts have laid a sound foundation for the sustained and healthy development of the economy. In the next stage, the combined effects of both existing and new policies are expected to emerge, with the effects of policies continuing to be seen. Of course, we must also note that the external environment remains complex and grim, and the internal impetus of the economy still needs to be stimulated. We must follow the decisions and arrangements of the CPC Central Committee, make full use of various policies and effectively exert the effectiveness of policies, promoting economic growth, structural improvement as well as improved quality and efficiency. Thank you.

Red Star News:

What are your thoughts about the real estate market trends in November? What effect does the recently promoted new policies have, and is this effect reflected in the data? Thank you.

Fu Linghui:

Thank you for your questions. The real estate sector is not only related to people's livelihoods but also economic development. It is of great concern to all parties involved. Faced with new changes in the real estate market, the meeting of the Political Bureau of the CPC Central Committee on September 26 emphasized the need to "curb the downturn of the real estate market." Multiple departments have stepped up efforts to improve land, fiscal, tax and financial policies;to cancel restrictive measures such as purchasing restrictions, sales restrictions, price limits and standards for ordinary and non-ordinary residential properties; and to lower interest rates, down payment ratios, and taxes and fees in transaction links. These measures have released housing demands and reduced housing costs, achieving significant results. October saw positive changes in the real estate market. In November, property transactions became more active, market expectations improved, and the market continued to move towards curbing the decline and stabilizing.

First, market transactions tend to be active. With the optimization and adjustment of policies, the threshold required for purchasing a house has been lowered and the burden of purchasing a house has been reduced. Residents are supported with buying their first homes and improving their housing situation. Since October, real estate transactions have generally rebounded, and sales of newly built commercial housing saw further improvements in November. From January to November, compared to the decline in the first ten months, the year-on-year decline in sales area and sales value of new commercial housing narrowed by 1.5 and 1.7 percentage points,respectively. Both sales area and sales value in November achieved positive growth. In terms of the sales situation in the 40 key cities that are monitored, from January to November, the year-on-year decline in the sales area and sales value of newly built commercial housing narrowed by 1.8 and 2.1 percentage points compared to the decline in the first ten months. Among them, monthly growths in November were 10.2% and 6.8%, respectively.

Second, there are more changes in housing price stabilization. As the effects of various policies aimed to curb the downturn of the real estate market become apparent, market transactions have become more active and transaction prices have shown signs of stabilizing. In November, among 70 large and medium-sized cities, sales prices with new commercial housing rose in ten more cities compared to the previous month, and two more cities saw monthly growth in prices of second-hand houses. In terms of sales prices of newly built commercial housing, the month-on-month decline in first-tier cities has stabilized, while the declines in second-tier and third-tier cities have narrowed by 0.4 and 0.2 percentage points respectively, compared with the previous month. In terms of sales prices of second-hand housing, first-tier cities saw a month-on-month increase of 0.4%, while second-tier and third-tier cities saw a month-on-month decrease of 0.2 and 0.1 percentage points respectively, compared with the previous month.

Third, market expectations continue to improve. Improved real estate market transactions and price stabilization have led to improved market expectations. The PMI survey shows that the index of housing market expectations in November rebounded by 1.1 percentage points compared to the previous month. A survey on real estate market entities showed that, in November, among real estate developers and intermediary agencies in 70 large and medium-sized cities, 68.5% and 57.1% of the respondents expect sales prices of newly built commercial housing and second-hand housing to remain stable or to increase in the next six months. This indicates that expectations of market entities are stabilizing.

In general, with various policies, the real estate market in November showed many positive changes. Market confidence has been boosted, the momentum for stopping the decline and increasing stabilization has been strengthened, with the outlook expected to continue improving. In the next stage, we must conscientiously implement the decisions and arrangements of the CPC Central Committee and the State Council, deeply understand the profound changes in the dynamics of supply and demand in the real estate market, strictly control new developments, optimize existing stock, and improve quality, as well as improve the housing system featuring multiple suppliers and various channels of support that encourages both housing rentals and purchases. We must move faster to foster a new development model for the real estate sector, to better meet people's demand for buying their first home or improving their housing situation and to promote the stable and healthy development of the real estate market. Thank you.

South China Morning Post:

In November, there was "Double 11" shopping festival and government subsidies for trade-in programs, but you just mentioned that the year-on-year growth rate of total retail sales of consumer goods declined compared with the previous month. Could you elaborate further on the state of affairs with the recovery of consumption? Thank you. 

Fu Linghui:

Thank you for your question. Consumption growth has also drawn the attention of many people. As mentioned earlier, due to the early start to the "Double 11" online shopping period, sales of some goods were shifted to October, leading to a slowdown in market sales growth in November. However, if we look at the combined performance of October and November, the retail sales of consumer goods still grew significantly faster than in the third quarter. Market sales remained on a recovery path. At the same time, retail sales of services maintained rapid growth, also indicating an expansion of consumer demand. Specifically, it shows the following features : 

First, overall market sales have rebounded. In November, the total retail sales of consumer goods increased by 3.0% year-on-year, a decrease from the previous month, mainly due to the shift in some sales from the "Double 11" online shopping period. If October and November are combined, the total retail sales of consumer goods increased by an average of 3.9%, 1.2 percentage points faster than the average growth rate in the third quarter, indicating a general rebound in market sales since the fourth quarter.

Second, the effects policies have driven continued to emerge. Although the growth rate of retail sales for some categories of goods slowed down in November, market sales of goods supported by trade-in programs, such as automobiles, home appliances and home decor, continued to maintain rapid growth. Specifically, in November, the retail sales of household appliances and audiovisual equipment, automobiles and furniture by enterprises above the designated size grew by 22.2%, 6.6% and 10.5%, respectively, significantly outpacing total retail sales growth and continuing to be a key driver for market sales growth.

Third, sales of products related to real estate have rebounded. With various policies aimed at stabilizing the real estate market having taken effect, the real estate market recently saw a noticeable improvement in sales, driving the demand for house decoration and renovation, which has led to a rebound in sales of related products. In November, among the retail sales of goods by enterprises above the designated size, the sales of construction and decoration material goods turned from a year-on-year decrease of 5.8% in the previous month to an increase of 2.9%.

Fourth, retail sales of services have registered fast growth. Supported by policies to promote service consumption, the demand for service consumption has continued to expand, contributing to rapid growth in retail sales of services. In November, catering consumption accelerated, with national catering revenue increased by 4% year-on-year, 0.8 percentage point faster than the previous month. Retail sales of services continued to grow faster than retail sales of goods. From January to November, retail sales of services increased by 6.4% year-on-year, 3.2 percentage points faster than retail sales of goods. Specifically, retail sales in the transportation and information transmission service sectors both maintained double-digit growth.

Overall, the recovery in market sales has continued since the fourth quarter, and the effects of policy-driven growth remain evident. Of course, we should also note that the internal drivers of growth with consumption still need further strengthening. Moving forward, efforts will focus on stabilizing employment, increasing incomes, enhancing residents' consumption capacities, improving consumption policies, boosting consumer confidence as well as enhancing the quality of supply to better unleash consumption potential and to promote stable and healthy economic development. Thank you.

Market News International:

Why has the upturn in China's economic data since the end of September not led to a stronger increase in CPI, with CPI in November remaining relatively weak? And what is the outlook for CPI? Thank you.

Fu Linghui:

Thank you for your questions. Commodity pricing is an important aspect to observing the relationship between supply and demand. For China, food has a large weight in the CPI and greatly impacts its fluctuation. When observing the relationship between supply and demand, we should not only look at the overall changes in CPI, but also changes in the core CPI. Judging from the situation in November, mainly affected by the decline in food prices, the month-on-month decline in consumer prices widened while the year-on-year growth rate declined. However, if we look at the core CPI, the year-on-year growth rate continued to expand, indicating an improvement in the relationship between supply and demand. This also shows that price changes should be observed from multiple perspectives.

From a month-on-month perspective, CPI fell by 0.6% in November, 0.3 percentage point wider than the previous month. This was mainly due to relatively high temperatures and relatively few cold fronts across the country in November, which was conducive to the production, storage and transportation of fresh food, thereby driving the decline in food prices and lowering consumer prices. In November, food prices fell by 2.7% month-on-month, a decline 1.5 percentage points higher than that in the previous month. The prices of fresh vegetables, pork, fresh fruits and aquatic products dropped within the range of 13.2% and 1.3%, jointly contributing to a month-on-month decline in CPI of about 0.46 percentage point, accounting for about 80% of the total CPI decline.

CPI rose by 0.2% year-on-year in November, eased from the 0.3% increase reported in the previous month. The decrease in food prices was the main factor behind the decline in year-on-year price increases. In November, food prices rose by 1%, down 1.9 percentage points from the previous month. Price increases with fresh vegetables and pork were both lower than the previous month, and the price of fresh fruits turned from an increase in the previous month to a decrease.

In terms of price changes, the yearly increase of CPI continued to narrow in recent months, mainly due to fluctuations in food and energy prices. Prices of other products and services were generally stable. As existing and incremental policies took combined effects, the supply and demand relationship showed signs of improvement. In November, the core CPI rose 0.3% year on year, 0.1 percentage point higher than the previous month, marking expanded growth in two consecutive months. Meanwhile, the increase of prices in certain service sectors went up. Service prices in November rose 0.4% year on year. Among this, the price of education, culture and recreation rose 1%, 0.2 percentage point higher than the previous month.

The CPI was generally stable in November. Driven by improved demand, the supply and demand relationship showed signs of improvement. Certain sectors saw slight price increases. Going forward, China will see another bumper harvest, supply of most industrial consumables will be adequate, and supply of services will be generally stable. The economic recovery will drive up demand, which is conducive to improving the CPI, so the CPI is expected to maintain a slight increase. Thank you.

National Business Daily:

The PPI shifted from monthly decline to monthly increase in November, with the yearly decline narrowing. What were the factors behind this? And how do you predict the PPI will change in the future? Thank you.

Fu Linghui:

Thank you for your questions, which are also about prices. In November, as existing and incremental policies took effect, demand for industrial products improved. Certain industries optimized and adjusted production capacity, prompting increases in industrial producer prices.

In terms of monthly changes, PPI rose 0.1% in November after decreasing by 0.1% in the previous month. In particular, raw material related industries saw increased prices. Cement and glass manufacturing prices rose 6.2% and 1.8%, respectively, and prices of smelting and pressing of non-ferrous and ferrous metals rose 1.2% and 0.2%, respectively. In terms of yearly changes, the PPI declined 2.5% year on year in November, narrowing by 0.4 percentage point compared with the previous month. Prices of means of production decreased 2.9%, narrowing by 0.4 percentage point compared with the previous month. Among major industries, the price declines in petroleum and chemical, computers and communication equipment, and electrical and machinery industries all narrowed. Prices of smelting and pressing of non-ferrous metals further increased.

As prices improved, we should also note that decreasing international crude oil prices have impacted related industries at home. In November, the prices for petroleum extraction and organic chemical raw materials manufacturing both declined by 1.4% month on month. Meanwhile, technological advancements accelerated in certain domestic industries, leading to declining prices of related products. In November, prices of new energy vehicle manufacturing were down by 0.8% month on month.

Despite the impact of falling international commodity prices and falling prices in certain industries at home, the supply and demand for industrial products showed signs of improvement as macro policies took effect. In some sectors, prices ceased to decline and started to stabilize, helping improve enterprise operations. Looking ahead, we will continue to leverage various macro policies to expand domestic demand, promote innovation-driven development and capacity adjustment, improve the dynamic equilibrium between production and demand, and stabilize and improve prices. This will boost enterprise confidence in their operations and development, ensuring sustained healthy economic development. Thank you.

21st Century Business Herald:

Data on industrial production in November showed slightly increased growth compared to the previous month. What was behind this? Will the recovery in industrial growth be sustained? And the PMI remained within the expansion range for two consecutive months in October. What was the reason for the improved PMI? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, industrial production has been a highlight of the economy, generally maintaining steady and rapid growth. Benefiting from macro policies, industrial growth increased steadily in November. The manufacturing sector grew rapidly, new growth momentum continued to expand, and enterprise expectations improved. All these contributed to the stable economic performance. More specifically:

First, production was steady and improved. The value added of industrial enterprises above designated size grew 5.4% year on year in November, 0.1 percentage point higher than the previous month. The value added of manufacturing, which is the mainstay of the industrial sector, increased by 6%, 0.6 percentage point higher than the previous month. Industrial production was driven significantly by exports. The export delivery value of industrial enterprises above designated size grew 7.4% year on year in November, up 3.7 percentage points from the previous month.

Second, positive signs were seen in industrial upgrading. As we promote high-end development of the industrial sector and large-scale equipment upgrades, high-tech and equipment manufacturing both realized rapid growth. In November, the value added of high-tech and equipment manufacturing grew 7.8% and 7.6%, respectively, significantly outpacing the overall growth of industrial enterprises above designated size. In terms of industries, automobiles and electronics showed good growth momentum. In November, the value added of automobile manufacturing, and computers and other electronic equipment manufacturing grew 12% and 9.3%, respectively. In terms of products, output of products with high added value grew rapidly. In November, output of integrated circuits and industrial robots grew 8.7% and 29.3%, respectively.

Third, the transition to intelligent and green development has continued. Driven by policies to promote high-quality industrial development, the intelligent and green development of the manufacturing industry has become increasingly prominent, with rapid growth in the production of intelligent equipment and green products. In November, the added value of intelligent unmanned aerial vehicle manufacturing and intelligent onboard equipment manufacturing increased by 60.6% and 13.9%, respectively; and the output of new energy vehicles and solar cell products increased by 51.1% and 10.9%, respectively.

Fourth, business expectations have improved. Overall, as macroeconomic policies take effect and market demand improves, the PMI of manufacturing enterprises has continued to rebound since September. In November, the manufacturing PMI was 50.3%, up 0.2 percentage point compared with the previous month, marking a continuous rise for three consecutive months and remaining above the 50-point threshold for two consecutive months. The manufacturing production and operation expectation index increased by 0.7 percentage point compared with the previous month, signaling increased business confidence in future market prospects.

Overall, industrial production increased steadily in November, with continued improvements to the industrial structure, sustained advancements in the transition to high-end, intelligent and green production, and improved business expectations. However, some industrial enterprises are still facing challenges, such as inadequate market demand, intensified competition and profitability issues, resulting in considerable operating pressure. Going forward, we will focus on implementing policies to support industrial development, expanding domestic demand, improving and adjusting industrial capacity, and strengthening sci-tech innovation and industrial innovation, to promote the high-quality development of industry. Thank you.

Reuters:

Given the economic data for the first 11 months of the year, is the annual economic growth target on track to be realized? What are the prospects for economic development in 2025? What measures can be taken to effectively expand domestic demand, particularly to boost consumption, and to cope with potential external shocks? Thank you.

Fu Linghui:

Thank you for your questions. The annual growth target is of great concern to all people. This year, the international environment has been complex and severe, with the global economic recovery slowing down, and domestic economic adjustments and transformations facing increasing difficulties. While the economy started off well in the first quarter, it faced growing pressures in the second and third quarters. Given the complex situation, the CPC Central Committee made scientific decisions and enhanced countercyclical adjustments. In particular, since the meeting of the Political Bureau of the CPC Central Committee on Sept. 26, a raft of incremental policies has been implemented at a rapid pace. As a result, major economic indicators have rebounded significantly since the beginning of the fourth quarter, effectively boosting confidence and leading to a noticeable increase in positive changes. Considering the overall performance this year, we are on track to achieve the major goals for economic and social development.

First, the economic recovery has continued. While several indicators experienced a modest slowdown in November due to short-term factors, the major economic indicators have shown a significant rebound since the fourth quarter compared to the level of the third quarter. The overall trend of economic recovery remains unchanged. According to the data from October and November, the growth rate of value added of industrial enterprises above designated size, the index of services production, and total retail sales of consumer goods increased by 0.4, 1.4 and 1.2 percentage points, respectively, compared to the third quarter. The manufacturing sector, as the mainstay of industry, witnessed a 6% growth in value-added in November, marking a 0.6 percentage point increase compared with the previous month. Within the service sector, the production indices for real estate and transport, storage and postal services surged by 2.1 and 1.3 percentage points, respectively, compared to the previous month. These positive developments are driving economic recovery.

Second, macroeconomic policies have provided a significant boost. In the fourth quarter, the combined effects of the raft of incremental policies and existing policies have synergistically expanded demand, driven production and propelled economic recovery. This is reflected in the significant rebound of major indicators in October, and this upward trend continued in November. Examining the data from November, it is evident that sales of household appliances, furniture and automobiles, supported by the consumer goods trade-in program, maintained rapid growth. With support from the policy for implementing major national strategies and building security capacity in key areas, and the program of large-scale equipment upgrades, both equipment and raw materials manufacturing witnessed accelerated growth. Investment in infrastructure, including water conservancy and power facilities, also increased rapidly. The ongoing positive effects of various policy measures will provide significant support for economic recovery and growth.

Third, new quality productive forces have shown steady growth. China's economy is in a critical period of transformation and upgrading. Various departments and localities have stepped up efforts to promote sci-tech innovation and industrial innovation, and foster and strengthen new quality productive forces, which has injected new vitality into the country's economic development. New industries such as integrated circuits manufacturing and new energy vehicles have maintained rapid growth, providing stronger support for economic growth. In November, the added value of the integrated circuits manufacturing industry grew by more than 20%, while the output of new energy vehicles surged by over 50%. Moreover, the digital and intelligent transformation of industries has promoted the development of emerging industries. In November, the intelligent unmanned aerial vehicles industry and smart onboard device industry both maintained double-digit growth.

Fourth, market expectations and confidence have continued to improve. With macroeconomic policies starting to yield results, a surge in market demand, and increased activity in the stock and property markets, market expectations and confidence are improving. This is driving a virtuous cycle of economic development. In November, sales of newly constructed residential properties increased in both volume and value. The transaction volume and turnover in the Shanghai and Shenzhen stock exchanges continued to climb substantially. Business sentiment has also improved. In November, the manufacturing PMI continued its upward trend for the third consecutive month, while the business activity index of the services sector maintained in the expansionary zone. Both the manufacturing and services sectors have shown upward trends in their business activity expectation indices. These positive developments have been conducive to expanding consumption and investment, driving economic recovery.

On the whole, despite facing many difficulties and challenges this year, the Chinese economy is underpinned by a stable foundation, multiple advantages, strong resilience and significant potential, while the supporting conditions and fundamental trends for long-term sound economic development have not changed. In response to the new situation and new problems, the CPC Central Committee made sound decisions in a timely manner, the incremental policies are gradually taking effect. The economy has shown clear signs of recovery, and we are on track to meet the main economic and social development goals for the year. For next year, the international environment will be increasingly volatile, grave and uncertain, the prevalence of trade protectionism will drag down the growth of global trade and the recovery of the world economy. The negative impact of geopolitical conflicts on the global supply of energy and other bulk commodities is still difficult to predict. The spillover effects of macroeconomic policy adjustments in major economies still face major uncertainties. The domestic economic adjustment and transformation keeps moving forward. We must continue to expand domestic demand, boost residents' employment and incomes, and make more efforts to defuse risks and potential dangers. In the face of the complex and severe situation both at home and abroad, the recent Central Economic Work Conference has made comprehensive deployments for next year, providing fundamental guidelines for the steady and long-term growth of the Chinese economy.

Next, we will thoroughly implement the guiding principles of the Central Economic Work Conference, promote sustained economic growth, and lay a solid foundation for the high-quality completion of the objectives and tasks outlined in the 14th Five-Year Plan (2021-2025). Thank you.

Xing Huina:

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

Jiupai News:

What are the reasons for the increase in China's total grain output in 2024 compared with the previous year? Could you introduce the relevant data? Thank you.

Fu Linghui:

Thank you for your questions. Achieving another bumper grain harvest this year has been no easy feat. In 2024, China's grain output reached 1.41 trillion jin, an increase of 222 billion jin, or 1.6% compared with the previous year. After nine consecutive years of maintaining a stable output above 1.3 trillion jin, China has for the first time surpassed the 1.4 trillion jin mark. There are three main factors behind this year's bumper harvest in grain production:

First, policy support has taken effect. The CPC Central Committee and the State Council attached great importance to grain production, and introduced a series of policies to boost agriculture, benefit farmers and increase rural prosperity. These measures include raising the minimum purchase prices for wheat and early indica rice, stabilizing subsidies for soil fertility conservation, corn and soybean producers, and rice, expanding the coverage of full cost insurance and planting income insurance, improving the mechanism for ensuring the provision of agricultural supplies at stable prices, and optimizing the mechanisms for ensuring the interests of grain farmers. These comprehensive measures aimed to boost farmers' enthusiasm for growing crops and stabilize sown areas. In 2024, the total sown area of grain crops nationwide reached 1.79 billion mu, an increase of 0.3% compared to the previous year, maintaining growth for five consecutive years.

Second, the "sustainable and technological" strategy of food security has been thoroughly implemented. All regions have thoroughly implemented the strategy of sustainable farmland use and innovative application of agricultural technology for national food security, continued to advance the construction of high-standard farmland, and deepened the campaign to increase per unit crop yield on a large scale. By promoting technologies such as reasonable high-density planting, integrated water and fertilizer management, "spraying once to prevent diseases and pests, dry and hot winds, and collapses," as well as "spraying once to promote growth," they have effectively improved per unit grain yield. In addition, the meteorological conditions in most agricultural areas were generally favorable throughout the year, with a good combination of sunlight, temperatures and precipitation. In 2024, the average yield per mu reached 394.7 kilograms, up 1.3% year on year. The increase in yield per unit area contributed more than 80% to the increase in grain production.

Third, the responsibilities for grain production have been effectively fulfilled. We have ensured that both Party committees and governments assume responsibility for ensuring food security, all regions have continued to increase their support for food production through multiple measures, and therefore have achieved fruitful results. In 2024, 26 of the 31 provinces (autonomous regions and municipalities directly under the central government) increased production. In particular, major grain producing areas have had a significant effect, fully reflecting the requirement of "jointly supporting the rice bowls and taking on responsibilities."

On the whole, while some areas this year were hit by serious natural disasters, the annual grain production achieved another bumper harvest and the output reached a record high through the joint efforts from all over the country, laying a solid foundation for ensuring national food security and promoting all-round rural revitalization. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thank you to Mr. Fu for his introduction and to friends from the media. Goodbye.

Translated and edited by Wang Ziteng, Liao Jiaxin, Zhang Rui, Chen Xinyan, Zhang Jiaqi, Liu Sitong, Gongyingchun, Zhang Tingting, David Ball, 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 Yang, vice minister of transport 

Mr. Zhou Rongfeng, director general of the Highway Bureau of the Ministry of Transport 

Ms. Wang Xiuchun, deputy director general and first-level inspector  of the Department of Transport Services of the Ministry of Transport 

Mr. Hou Zhenxing, deputy director of the General Planning Department of the Ministry of Transport

Chairperson:

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

Date:

Nov. 29, 2024

Xing Huina:

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

Today, the SCIO has organized this press conference to release the white paper "China's Rural Roads in the New Era," and to introduce and interpret its main content. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the white paper fully implements General Secretary Xi Jinping's important instructions on the construction, management, maintenance and operation of rural roads. It systematically outlines China's policy approaches to rural road development and provides a comprehensive overview of efforts to steadily advance rural transport infrastructure construction, enhance governance capacity, improve maintenance efficiency, and elevate service levels. The white paper also shares China's experiences in supporting rural economic development, advancing rural revitalization, and promoting the modernization of agricultural sector and rural areas through rural road development. Furthermore, it highlights China's active contributions to the development of rural transport in other developing countries through international cooperation mechanisms, offering both wisdom and strength to foster global progress.

The white paper consists of a preface, main body and conclusion, and is approximately 20,000 Chinese characters in length. The main body is divided into seven chapters: "Building Roads to Benefit Rural Areas and the Rural Population," "Building Rural Roads Accessible to Every Household," "More Coordinated, Standardized and Efficient Rural Road Governance," "Safer, More Durable, and More Comfortable Rural Roads," "Smooth and Convenient Passenger and Freight Transport in Rural Areas," "Interconnected Roads Bring Prosperity to All Industries, and Help Improve People's Lives and the Environment in Rural Areas," and "China's Contribution to Rural Transport in Other Developing Countries."

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

To help everyone gain a better understanding of the white paper, we have invited Mr. Li Yang, vice minister of transport, to attend today's press conference. He will introduce the white paper and interpret its key contents, and answer your questions. Also present today are Mr. Zhou Rongfeng, director general of the Highway Bureau of the Ministry of Transport; Ms. Wang Xiuchun, deputy director general and first-level inspector of the Department of Transport Services of the Ministry of Transport; and Mr. Hou Zhenxing, deputy director  of the Department of General Planning at the Ministry of Transport. Now, I would like to invite Mr. Li to give his introduction.

Li Yang:

Ladies and gentlemen, friends from the media, good afternoon. I am very pleased to join you today to witness the release of the white paper "China's Rural Roads in the New Era." Thank you all for your interest in and support for the development of rural road infrastructure.

This year marks the 75th anniversary of the founding of the People's Republic of China, as well as the 10th anniversary of General Secretary Xi Jinping's important instruction to further improve the construction, management, maintenance and operation of rural roads. Guided by General Secretary Xi Jinping's important directives on rural roads, people of all ethnic groups in China have overcome mountains by building roads, crossed rivers by building bridges, and tackled difficulties, continuously promoting the high-quality development of rural roads. This has led to historic achievements and paved a development path for rural roads that is in line with China's national conditions, adapted to local conditions, and is practical. It has also contributed Chinese wisdom to the global poverty reduction cause and provided Chinese solutions. I will now briefly introduce the main contents of the white paper "China's Rural Roads in the New Era" from four aspects.

One aspect of the white paper is that it systematically expounds on the basic principles of China's rural road development. These basic principles can be summarized in five aspects:

First, people-centered approach. We remain committed to the development philosophy that prioritizes the people and focuses on their well-being, striving to meet the public's demand for better travel.

Second, high-level planning as a part of overall national development. We have focused our efforts on serving the central task of economic development and the overall interests of the country, positioning rural road development within major tasks that are crucial to the country's overall development, including poverty alleviation, the implementation of the rural revitalization strategy, and the modernization of agricultural sector and rural areas.

Third, exploring development paths in light of local conditions. We have taken into account the development stage and conditions of rural areas in different regions and of different types, and formulate differentiated development goals and supportive policies to ensure that rural roads align with the regional economic development level, rural industrial layout and the public's demand for safe, efficient and convenient travel.

Fourth, propelling rural road construction with reform and innovation. We continue to deepen the institutional reform of rural road management and maintenance systems, using reform and innovation to invigorate the development of rural roads.

Fifth, forging synergy for development through coordination and collaboration. We continue to motivate all parties involved, establishing a work framework under which Party committees exercise leadership, governments play a principal role, government departments across different levels coordinate their actions to ensure efficient operation, thus creating a powerful force for development.

The second aspect of the white paper is that it provides a comprehensive introduction to the practices and achievements in China's rural road development. Based on the foundation of "construction," we have accelerated the creation of an extensive rural road network that connects villages and towns. Over the past decade, we have constructed and upgraded 2.5 million kilometers of rural roads. By the end of 2023, the total length of rural roads in China reached 4.6 million kilometers, with all towns, townships, and administrative villages where conditions allow now having access to asphalt and cement roads. A rural transport infrastructure network in which county roads connect rural and urban areas, township roads crisscross, and village roads facilitate travel between households and farmland is in place. Our rural roads are not only built quickly but also beautifully. Every year, we select the top 10 most beautiful rural roads. Recently, in coordination with the white paper, we published a book titled "Rural Roads in China." I would like to recommend this book to all the journalists here. In it, you can explore many of China's most beautiful rural roads. We also welcome friends from the media to visit these roads, experience the beauty of China's countryside, and feel the rich and diverse rural culture.

By taking "effective management" as a means, we have accelerated the establishment of a standardized and efficient rural road governance system. In the white paper, we further summarize how to improve governance and management effectiveness, promote the rural road management system, improve laws and regulations, and issue guiding policy documents, especially technical standards. We have fully implemented the road chief system for rural roads, which has become well-known to everyone. This system aims to drive continuous improvements in the rural road governance framework.

Taking maintenance as the guarantee, we have accelerated the development of an applicable and diverse rural road management and maintenance system. We are not only focused on building roads, but also on maintaining them. Grasping key areas such as improving road conditions, ensuring safety and enhancing the roadside environment, we continuously strive to improve management and maintenance efficiency. The white paper includes a special section showcasing the progress in improving the proportion of rural roads classified as premier, good or medium condition. Over the past decade, this rate has increased by 10 percentage points, effectively realizing the principle of "every road must be maintained, and maintenance must be effective."

Taking good operation as the goal, we have accelerated the improvement of a convenient and balanced rural transport service system. The purpose of building roads is to better facilitate travel for rural residents. Guided by this goal, we have enhanced equal access in urban and rural transport services, promoted the integrated development of passenger, freight and postal services in rural areas, and facilitated the smooth flow of people and goods between urban and rural areas, as well as among townships. This has played a crucial role in enabling the equal exchange of production factors between urban and rural areas and balanced allocation of public resources.

The third aspect the white paper highlights is China's contributions to the development of rural roads in developing countries through promoting technical standards, sharing development experiences, and supporting local rural road construction. First, we have continuously expanded the availability and application of foreign-language editions of China's highway engineering standards, allowing more of the international community to understand China's road standards, particularly for rural roads. Second, we have established international exchange and cooperation platforms, actively participated in the work of international organizations, and conducted international training programs to share and exchange experiences in rural road development. Third, we have participated in international construction projects. For instance, a special section in the white paper introduces China's support for Ecuador's Ministry of Transport in post-disaster reconstruction. Through construction projects like these, along with technical support and human resources, we are helping developing countries to improve their rural transportation conditions.

The fourth aspect of the white paper is that it articulates China's firm stance on working with all countries to continue promoting global rural road development and poverty reduction.

These are the key points of the white paper that I wanted to introduce. Thank you.

Xing Huina:

Thank you for your introduction, Mr. Li. We will now move on to the Q&A session. Journalists are welcome to raise their hands to ask any questions. Please identify your news outlet before asking your question.

CCTV:

During the introduction, you mentioned that this year marks the 10th anniversary of the high-quality rural roads initiative, focusing on the construction, management, maintenance and operation of roads. Could you share the specific measures China has implemented over the past decade to advance rural road development? Thank you.

Li Yang:

Thank you for your question and for your interest in rural roads. Indeed, over the past decade, we have accumulated some valuable experience in promoting rural road construction. Our main practices can be summarized in eight aspects:

First, focusing on strengthening organization and leadership. The Ministry of Transport set up a leading group to implement the rural revitalization strategy and advance the high-quality rural roads initiative, integrating the construction of high-quality rural roads into practical matters that are closely aligned with people's livelihoods in transportation to ensure effective implementation. For 10 consecutive years since 2015, we have held national conferences on this topic, continually driving high-quality rural road development.

Second, improving policy systems. We have issued a series of guiding policy documents at the national level, such as the Guiding Opinions on Promoting the High-Quality Development of Rural Roads in Their Construction, Management, Maintenance and Operation, creating a comprehensive policy system on rural roads. Currently, 16 provinces, municipalities and autonomous regions have enacted local regulations for rural road development, laying a solid legal foundation for rural road development.

Third, enhancing financial support. As I mentioned, we have mobilized resources of all parties to create synergy for development, particularly in raising funds. Over the past decade, the central government has allocated 746.1 billion yuan in vehicle purchase tax funds for rural roads, primarily targeting impoverished areas. Nationwide, a total of 4.3 trillion yuan has been invested in rural road fixed assets, forming a fund guarantee system for rural road development centered on public finance with multi-channel supplementary sources.

Fourth, refining technical standard systems. We have emphasized tailoring construction standards to local conditions, issuing documents like General Specifications for Design of Low Volume Rural Highway Engineering, Technical Standards for Low Volume Rural Highway Engineering, and Technical Specifications for Maintenance of Rural Highways. These standards provide strong technical support for the high-quality rural roads initiative.

Fifth, deepening reform and innovation. We have implemented the Opinions of the General Office of the State Council on Deepening Rural Road Management and Maintenance System Reform, with 100% of provinces having now formulated provincial-level implementation plans. Additionally, 167 pilot units have been selected to explore reforms and form replicable and scalable experiences.

Sixth, strengthening the fulfillment of duties. We have reinforced the responsibilities of county-level governments, establishing a road chief system characterized by Party committee leadership, government guidance, departmental collaboration, multi-level coordination and efficient operation.

Seventh, highlighting models and leading practices. By creating national model counties for the high-quality rural roads initiative, promoting rural logistics service brands, establishing demonstration counties for integrated urban-rural transportation, and launching campaigns like the "Most Beautiful Rural Roads" and "Outstanding Road Workers" I just mentioned, we have advanced rural road improvement through exemplary practices.

Finally, adhering to integrated development. We have integrated the high-quality rural roads initiative into broader rural development ecosystems, including industries, logistics, the environment and economy with distinctive features, promoting the integrated development of passenger, freight and postal services. I have visited many counties and villages in China and witnessed how the integrated development of passenger, freight and postal services has transformed rural transportation. Local specialty agricultural products are promoted through online sales channels, including livestream e-commerce. This approach effectively integrates rural road development with transportation, tourism, ecological conservation and economic growth, significantly boosting farmers' incomes and prosperity. We are actively advancing the "Rural Roads +" model to support and drive comprehensive rural revitalization. This approach highlights the pivotal role of transportation as a frontier in Chinese modernization.

That is all from me. Thank you.

China Daily:

The white paper mentions the critical role of rural roads in poverty alleviation and supporting work relating to agriculture, rural areas and rural residents. Could you elaborate on this? Thank you.

Li Yang:

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

Hou Zhenxing:

Thank you for your question. General Secretary Xi Jinping has emphasized that the high-quality rural roads initiative has brought vitality and prosperity to rural areas, particularly impoverished regions, while winning public support at the grassroots level for the Party. In recent years, the initiative has achieved remarkable results, enhancing rural residents' sense of gain, happiness and security. Rural roads have become pathways to prosperity, happiness, connection and revitalization for the people.

With the view to better serving the core task of economic development and the overall interests of the country, we have given full play to the foundational role of rural roads and expedited the development of rural transportation in poor areas. Since 2014, more than 1.4 million km of rural roads have been built or upgraded in previously poor areas, with more than 45,000 towns, townships and administrative villages obtaining access to bus services. All towns, townships and administrative villages where conditions allow had paved roads by 2019, and all such villages acquired bus services by 2020, fulfilling the promise that no region would be left behind because of inadequate transportation options on the journey towards prosperity. Our efforts can be summarized in three key points:

First, we have constructed better rural roads. After years of effort, we have built a rural transportation infrastructure network that connects villages, towns and townships, establishing an inclusive and equitable rural transportation service system. By doing so, we have ensured more comfortable and smoother passenger and freight transportation in rural areas, historically solving the problem of difficult road access in rural areas.

Second, we have made the countryside more beautiful. We have constructed high-quality rural roads that "are properly built, managed, maintained and operated," connecting urban and rural areas, shortening distance and travel times, as well as making efficient use of distinctive cultural and tourism resources in rural areas. By doing so, we have ensured that the vast countryside is finding greater prosperity and becoming more attractive, creating stronger momentum for rural revitalization. Such high-quality rural roads have also helped to improve the layout of villages and townships, retain local charm and nostalgia, enhance social etiquette and civility, bring significant changes in rural areas, and create a beautiful and harmonious countryside where people want to live and work.

Third, people who reside in rural areas have become better off. The steady improvement of transportation facilities in rural areas has attracted more capital, projects and talent to the countryside, creating more job opportunities and broadening avenues for income growth. People are now living a more prosperous life, bringing them closer to the Party. Through rural road construction projects, local governments have guided people who reside in rural areas to find jobs closer to their homes and to boost their incomes. As a result, high-quality rural roads have truly become projects that improve people's lives and win over people's hearts. Thank you.

21st Century Business Herald:

Roads should be well-built and maintained. In response to the problems of insufficient funds for rural road maintenance and difficulties in management, what measures has the MOT taken to ensure the long-term sound operation of rural roads? Thank you.

Li Yang:

Thank you. I would like to invite Mr. Zhou to answer your question about the funding for rural road maintenance.

Zhou Rongfeng:

Thank you for your question. We often say, "A well-functioning road network relies 30% on construction and 70% on maintenance." This speaks volumes about the importance of rural road maintenance. After years of continuous effort, we have had a good report card in this regard. The proportion of rural roads classified as premier, good and medium has been raised from 79% at the end of 2013 to 91.1% at the end of 2023. Over the years, we have continuously increased investment in rural road maintenance as well as have explored and applied new models and technologies. Mainly, we have made efforts in the following few aspects: 

First, we have improved the system of standards and specifications for rural road maintenance. We have officially launched a range of technical standards and specifications, including Technical Specifications for Maintenance of Rural Highway, Standards for Rural Highway Condition Assessment and Budget Compilation Method for Rural Road Maintenance. By doing so, we have established a system for technical standards that adapt to the current stage of rural road development. At the same time, we have guided local governments in implementing road maintenance projects covering regular maintenance, preventative maintenance, repair maintenance, specialized maintenance and emergency maintenance. All these efforts have clarified the content and requirements with maintenance work and have made our work more standardized and specialized.  

Second, we have further guaranteed sufficient funding for rural road maintenance. Based on factors such as road length and changes with maintenance costs, we have set up a mechanism for making dynamic adjustments to subsidy policies related to regular rural road maintenance. We have also increased the portion of fuel oil tax revenue that is allocated for subsidies with rural road maintenance. Subsidies granted to local governments for phasing out tolls on government-financed Grade II highways have been provided as a type of reward for good local performance with supporting rural road maintenance. We have guided local governments to make the best of policies with transfer payments for equalizing access to basic public services as well as with tax rebates. We have also actively explored the way to bundle rural road maintenance projects with profitable projects like some supporting facilities. All these efforts have introduced new fundraising methods and have expanded financing channels. In addition, to support rural road maintenance, we have incorporated road management and maintenance in the procurement services guidance catalog and have explored mechanisms such as disaster insurance for rural roads.

Third, we have promoted scientific decision-making for road maintenance. We have strengthened the application of information technology and have promoted digital transformation, integrating scientific decision-making into the entire process of rural road maintenance. We have actively promoted new technologies, techniques, materials and equipment in rural road maintenance, applying R&D efforts to automatic vehicles and portable devices to examine road surface conditions. By doing so, we have moved faster to promote the automatic examination of rural road conditions, as well as have strengthened data analysis and application, offering data support for scientific decision-making. 

Fourth, we have created new organizational models for road maintenance. We have systematically advanced market-oriented reform of rural road maintenance and have recruited professional companies to provide maintenance services, improving the specialization, mechanization and scale of maintenance operations. Meanwhile, we have strengthened technical training for rural road employees, effectively combining general and professional maintenance. Novel organizational models of rural road maintenance have been encouraged, such as combined tendering for the construction and maintenance of trunk highways and rural roads, overall contracting for zonal maintenance of rural roads as well as combined tendering for rural road construction and maintenance. All these efforts have made rural road maintenance operations more specialized. 

Thank you.

China Financial and Economic News:

As the key infrastructure connecting urban and rural areas, rural roads are indispensable for promoting rural economic development and improving people's well-being. What are your considerations and major tasks for the future in regards to promoting the high-quality development of rural roads? Thank you.

Li Yang: 

Thank you for your question. Looking from the point of view based on our endeavors to develop rural roads, most of the road network has already been completed. Next, as the journalist just mentioned, we will enter a new stage of high-quality development. Now, we are taking comprehensive moves to implement a rural revitalization strategy. Rural roads are a major infrastructure that promote common rural prosperity, advance rural revitalization across the board as well as expedite the modernization of agriculture and rural areas. On the new journey of the new era, we should continue to make sustained efforts. One of my colleagues just mentioned that rural roads have become projects that improve people's lives and win over people's hearts. To fully implement these projects, we will take efforts in three aspects to launch a new round of programs focused on the upgrading of rural roads. 

First, enhancing service support for the comprehensive vitalization of rural areas. Through the construction of rural roads, including services, we aim to promote the enhancement and integrated development of our industries. We plan to focus on upgrading the main rural road network to Grade III standard or higher, creating fast access routes that connect townships and major economic nodes. We will vigorously develop the "Rural Road Plus" model, accelerating the construction of roads for rural industries, tourism and resources. This effort will further deepen the integration of transportation with the tourism and energy sectors. We will also enhance the construction of "Beautiful Rural Roads," coordinating the development of rural roads, optimizing village layouts, and improving the rural living environment.

Second, ensuring safety and securing the baseline. Safety is the primary task in promoting the development of rural roads. We focus on providing paved roads to larger natural villages and graded roads to administrative villages, accelerating the renovation of old roads and the widening or creation of passing lanes on overly narrow rural roads. In the past, some rural roads were built so narrow that vehicles could not pass each other, sometimes making travel difficult, but now rural transportation is developing rapidly. We will strengthen the inspection and rectification of potential risks and hidden dangers in rural roads, bridges and tunnels, while accelerating the enhancement of safety protection capabilities. We will increase investment in maintenance, advance rectification projects for substandard road sections, and steadily improve the road service.

Third, striving to improve service quality and increase public satisfaction. With the increasing use of new energy vehicles on rural roads and changes in travel modes, we will focus on enhancing the construction of service facilities along rural roads. We aim to further expand services such as parking, shopping, tourism and charging, to promote the equalization of urban and rural passenger transport services. We will further optimize rural logistics services and improve the integrated development of passenger, freight and postal services in rural areas. We will further promote work--relief programs in the construction and maintenance of transportation infrastructure, directly creating more job opportunities. We will make coordinated use of public welfare positions in the management and maintenance of rural roads, creating more opportunities for employment and income generation for rural residents along these routes. This will continuously enhance the sense of gain, happiness and security among the vast rural population.

That is all from me. Thank you.

Phoenix TV:

We are particularly interested in the support of transportation in rural areas. As we continue to build the rural road network, how can the transportation support services be improved in rural areas? Thank you.

Li Yang: 

Thank you for your question. I would like to invite Ms. Wang to answer this.

Wang Xiuchun: 

Thank you for your interest in transportation services. Over the years, we have continuously strengthened the rural road network. We have focused on improving transportation services in rural areas from the perspectives of both passengers and freight, constantly perfecting our service network, improving our service system and enhancing service quality.

In terms of rural passenger transportation, we have taken three major steps to address the travel needs of rural residents. First, we have aimed to ensure accessibility. By developing urban-rural bus services, passenger transport routes and customized passenger services, we have extended the rural passenger transport network. As my colleague mentioned earlier, by 2020, all townships and administrative villages that meet certain conditions had access to bus services. Over the past decade, more than 45,000 new administrative villages have been connected by bus services. Second, we have focused on retention. As the public now has more travel options, the passenger flow in rural transportation has significantly decreased, making stable operations challenging. We have continuously optimized management policies and adjusted subsidy methods to promote the integration of rural passenger transport with related industries, ensuring sustainable and stable operations. Third, we have strived for quality connectivity. We have encouraged rural passenger transportation companies to innovate service models, operate market-day and busy-season routes, and implement integrated urban-rural public transportation, catering to the diverse travel needs of rural residents. Additionally, various service outlets have been set up in passenger transport stations, expanding services such as parcel collection and delivery, financial telecommunications, and e-commerce exhibition sales, providing comprehensive and diverse services to rural residents.

In rural freight logistics, we have focused on three main areas to address the development bottlenecks in rural logistics. First, we have aimed to expand coverage. We strongly support the construction of rural logistics nodes, continuously improving the network system and service functions to build the "core strength" of rural logistics development. Second, we have created new models. Supporting local efforts to explore ways of development based on unique regional advantages, we have now established over 150 rural logistics service brands with demonstrative significance, achieving integrated development of rural logistics, industry and e-commerce. Third, we have cultivated strong entities. We guide leading logistics companies to accelerate the expansion of service networks in rural areas, promote the integration of market resources, and build a shared distribution system, reducing end-stage delivery costs in rural areas by about 15% in provinces like Zhejiang, Hunan and Sichuan through successful explorations and trials.

Next, we will continue to monitor the evolving needs of rural transportation services, implement multiple measures and consistently enhance the quality and efficiency of these services, helping rural areas achieve the vision of "smooth and convenient passenger and freight transport" sooner. Thank you.

National Business Daily:

We know that there are still some disparities in development levels between different regions in our country. What targeted measures have been taken to improve transportation conditions in ethnic minority regions, remote mountainous areas and impoverished areas? Thank you.

Hou Zhenxing: 

Thank you for your question. Transportation in ethnic minority regions, remote mountainous areas and impoverished areas mainly relies on roads. Therefore, in promoting the development of rural roads, we always adhere to the people-centered development philosophy, implement precise policies, focus on balanced development, and explore rural road development models suitable for different regions based on local resources. We have taken three main targeted measures:

First, we have formulated differentiated policies and increased support. Based on the characteristics of the central and western regions and areas with special difficulties, we determine different construction priorities, formulate differentiated investment policies, and provide preferential support. We focus on developing rural roads in poverty-stricken counties, key counties for rural vitalization, underdeveloped areas, mountainous areas and ethnic minority regions, rapidly addressing shortcomings to promote balanced development of regional rural roads.

Second, we have adopted special measures to solve travel difficulties. To ensure safe travel for residents in remote areas, we have developed special plans and advanced the construction of rural roads in areas where "ethnic groups skip development stages to directly enter socialist society" and in ethnic minority areas with smaller populations to help these ethnic groups escape poverty. Additionally, for some mountainous areas where zip lines are significant safety risks and are inconvenient, we have implemented "replacing zip lines with bridges" projects, benefiting960,000 residents from 904 administrative villages, allowing them to enter a new "era of bridges."

Third, we have implemented a series of projects to improve the quality of roads. We have orderly implemented a series of projects, including building Grade III roads in towns and townships, providing paved roads to administrative villages, renovating roads with a shallow subgrade or surface, and renovating old county and township roads. These efforts have ensured that all 30,000 towns and townships and more than 500,000 administrative villages where conditions allow have been connected by paved roads. At the same time, we have developed models, such as "transportation + industry" and "transportation + tourism," tailored to local conditions. This has continuously improved the transportation network in rural areas, providing new momentum for rural revitalization and making travel more convenient for farmers in remote regions. Thank you.

Li Yang: 

I want to add something. This journalist just mentioned the travel situations in ethnic areas, remote mountainous regions and poverty-stricken districts. Mr. Hou just touched on an initiative which replaces zip lines with bridges in some mountainous areas and remote regions and has benefited 904 administrative villages and 960,000 people. Many of you may have seen scenes of farmers using zip lines for transportation. Ten years ago, General Secretary Xi Jinping said a particularly moving thing: "Especially in some impoverished areas, replacing zip lines with bridges and building new roads can open the door to prosperity for people." Ten years ago, the general secretary's instruction kicked off the high-quality development of rural roads in their construction, management, maintenance and operation, which helped many villages say goodbye to the history of not having roads. Here, we also feel the great responsibility for future development and hope that journalists will pay more attention to these special regions and provide us with good advice and suggestions. Thank you.

Dingduan News:

In recent years, various regions have explored and practiced the integration of rural passenger transport, freight logistics and postal delivery, promoting the intensive development of rural transportation. Could you please briefly talk on what the current situation is with the integrated development of passenger transport, freight transport, and mail delivery in rural areas? What are the next steps to promote better integration of the three? 

Li Yang:

Thank you for your questions. You just mentioned a very professional term: the integrated development of passenger transport, freight transport, and mail delivery in rural areas. I will ask my colleague, Ms. Wang Xiuchun, to answer.

Wang Xiuchun:

Thank you to this journalist for their attention to this topic. We have always regarded the integrated development of passenger transport, freight transport, and mail delivery in rural areas as an important measure to promote comprehensive rural revitalization, ensuring stable rural passenger transport, smooth logistics distribution, and effective handling of the "first and last mile" of postal services. After years of work, the integration of rural passenger, freight and postal services in China has gradually improved in terms of equipment, systems and operational mechanisms. As of now, more than 1,500 county-level administrative districts in the country have implemented the integration of rural passenger, freight and mail services, with more than 12,700 cooperative routes opened. In the first half of this year, the number of mail and express deliveries through rural passenger, freight and mail integration exceeded 900 million items.

We also see that in the process of rural passenger, freight and mail integration development, there are still issues such as insufficient coverage, imperfect cooperation mechanisms and lack of standardization in business operations. The next steps will focus on addressing these issues and accelerating the integrated development of rural passenger, freight and mail services.

First is the improvement of collaborative working mechanisms. Rural passenger, freight and mail integration development, as evidenced by the term, focuses on integration. We will guide local authorities to establish mechanisms for cooperation between transportation, postal, agricultural, rural and commercial sectors to form an efficient and collaborative working model.

Second is the improvement of service systems. We will guide local areas to continue improving the county, township and village-level service station systems, regulate rural passenger, freight and mail business practices, and expand new models such as "passenger, freight and mail + e-commerce, tourism and agriculture" to achieve sustainable development.

Third is the promotion and application of suitable equipment. We will strengthen communication with relevant departments and will continue promoting suitable vehicle models for rural passenger, freight and mail integration. We will encourage and guide county-level stations to adopt automated sorting and loading equipment to boost distribution efficiency.

Fourth is the continuation of improvements to support systems. We encourage localities to improve their supportive policies according to local conditions, to strengthen the promotion of successful experiences and to create a favorable atmosphere for the integration of rural passenger, freight and mail services throughout society. Thank you.

Economic Daily:

The white paper mentions that in the process of building and maintaining rural roads, many employment opportunities have been created for local farmers. Could you please elaborate on this? Thank you. 

Li Yang: 

Thank you to the Economic Daily reporter for their attention to the issue of employment. With the development of rural roads in China, we always emphasize people's collaboration, participation, and common interests, so that all the people can enjoy the benefits of better rural roads. In the construction and maintenance of rural roads, transportation departments at all levels have paid close attention to creating more direct employment opportunities for farmers. While indirect employment opportunities have greatly increased due to rural development and the integration with the tourism industry, we have also directly created jobs through the construction and maintenance of rural roads, allowing farmers to increase their incomes through employment close to their homes. Specifically, there are two main approaches:

First is the promotion of work-relief projects in rural road construction and maintenance to draw more rural labor. This is due to rural road construction and maintenance both requiring large investments, which benefits a wide range of people and has strong potential to drive up local employment. To facilitate employment absorption, we have issued the Notice on Doing a Good Job in Work-Relief in Transportation Construction and Maintenance and have encouraged and guided localities to actively promote work-relief programs. We also issued a tentative guideline for implementation of work-relief programs in transportation infrastructure construction and maintenance to further enhance technical guidance. Last year, we conducted a survey and found that 3,946 rural road projects adopted work-relief approaches, directly drawing nearly 96,000 rural laborers, which included nearly 14,000 people from once poverty-stricken households.

Second is the development of public welfare posts in rural road projects. Through taking advantage of the large number of widely distributed rural road projects, we have vigorously developed related jobs, which have played an active role in helping poverty alleviation as well as promoting common prosperity among rural residents. While increasing the number of positions for employment, we have also focused on enhancing skills training for the workforce, not only providing employment opportunities but also improving their skills to better meet job requirements. Currently, there are about 850,000 positions directly available in the field of rural road management and maintenance.

These are some of the practical experiences we have gained through the development of rural roads. We will encourage localities to explore more ways to continue creating both direct and indirect employment opportunities in line with the development of rural roads. Thank you.

Xing Huina：

Please continue to raise questions. I notice two journalists have their hands raised. 

Haibao News:

The construction of rural roads has greatly improved road infrastructure for rural people. Could you share some good practices to ensure travel safety? Thank you.

Zhou Rongfeng:

Thank you for your question. Ensuring safer and more secure travel has always been our priority. To this end, we've intensified our efforts in recent years in the following three areas:  

First, we have strengthened the safety of infrastructure. We have enforced a system for synchronizing the design, construction and the commissioning of road safety facilities with road construction projects. We have also taken solid actions to further refine the management of rural road safety facilities and traffic order. Moreover, we have prioritized rural road safety as a key component of our efforts to make transportation more people-oriented. We've also advanced the construction of the rural road travel safety project every year. Over the past decade, the rural road travel safety project has covered a total length of 1.23 million km. We have also made great efforts to refine safety facilities, including road signs, pavement markings, speed bumps and traffic lights, in a bid to improve rural road safety.

Second, we have carried out renovation and upgrading of bridges with poor technical conditions. We have made consistent efforts to strengthen bridge management and regular safety inspections for key bridges, and have implemented the 10 regulations for bridge operation safety, including strict accountability, the disclosure of information and funding guarantees. We also have carried out a series of special programs on the safety of highway bridge guardrails and the standardization of bridge information and bridge load limit signs for rural road transport. We have advanced actions to renovate old and dangerous bridges, prioritizing the repair of rural road bridges deemed to be dangerous. Over the past decade, a total of 58,000 old and dangerous bridges in the rural road network have been renovated; the total number of dangerous bridges has decreased on a yearly basis; the proportion of bridges that are in serviceable condition has increased from 83.2% to 98%.

Third, we have further improved disaster readiness and mitigation for rural road transport. We have released the Guidelines on Further Improving Disaster Readiness and Mitigation for Rural Road Transport and have strengthened public emergency management mechanisms for rural roads, enhancing disaster readiness and response capabilities of rural road networks. We have strengthened targeted inspections on key road sections during critical time periods and addressed rural road safety hazards. We have also made progress in establishing local reserve centers for highway emergency response supplies, enhancing the stockpiling capabilities for emergency response equipment, supplies and devices. We have built up rural road emergency rescue forces composed of both professionals and the general public, and have boosted their emergency response capabilities by intensifying drills for contingency plans, improving personnel training and increasing transport capacity. 

By implementing the aforementioned measures, we have been able to continuously improve the safety and traffic conditions of rural roads. Thank you.

Xing Huina:

One last question, please.

Yicai:

Creating a beautiful and harmonious countryside that is desirable to live and work in is an important task in advancing the rural revitalization strategy. What is the role of rural roads in this process? Thank you.

Li Yang:

Thank you for your question. Creating a beautiful and harmonious countryside is a major strategic arrangement made by the CPC Central Committee. It represents a beautiful evolution of rural development. In the process of rural road development, we have made serving and supporting the building of a beautiful and harmonious countryside our priority. Specifically, we have taken efforts in the following areas: 

First, we have focused on creating harmony between rural roads and their surroundings, including the layout of villages and towns, natural landscape and traditional culture. As mentioned previously, we have ensured rural road development in line with local conditions. In the planning, design and construction of rural roads, we've prioritized their integration into the optimization of the layout of villages and towns, improvement of rural living environments as well as the preservation of cultural relics and heritage, and surrounding landscape. We've also emphasized making rural roads blend in with their historical surroundings and cultural landscapes. Rural roads have played an important part in helping make the countryside more beautiful and preserve cultural traditions.

Second, we have intensified our endeavors to ensure improvements in road environment and service capacity. Local governments have launched projects to improve road environment, taking measures based on their own conditions to make rural roads tidy, green and beautiful. We have stepped up our efforts to separate roads from farmlands and residential housing, creating a beautiful environment for smooth, safe and comfortable travel, and building roads to make the countryside greener and more attractive.

Third, we have promoted the integrated development between rural roads and tourism. We've developed the model of "rural roads plus tourism," in which we connect rural roads with local cultural and tourist resources including natural landscapes and cultural heritage, turning scenic resources that have been preserved by generations of villagers into popular tourist destinations to boost rural revitalization through tourism. More examples like these can be found in the white paper. We also encourage you all to go experience this firsthand.

Moreover, we've launched diverse activities to help more people know "beautiful rural roads" and the beauty of the countryside. Since 2019, we have been launching the publicity activity themed "The road in front of my home," selecting the "Top 10 Most Beautiful Rural Roads" annually in a bid to highlight the remarkable progress and changes in rural road development. This activity has garnered widespread attention. This year, we worked with the Ministry of Culture and Tourism and the Office of the Central Cyberspace Affairs Commission to launch an activity that recommends the most beautiful routes for road trips. This event is designed to showcase the most picturesque rural roads, inviting people to discover and enjoy the beauty of the countryside during their time off.

We anticipate that these featured routes will soon evolve into must-visit tourist attractions, drawing crowds of social media influencers. After years of development, beautiful rural roads connect both natural and cultivated landscapes, blending in with distinctive rural homes as well as helping to build a large number of villages and towns that are desirable to live and work in, and painting new scenes of rural harmony and beauty. 

Regarding the future development of rural roads, as I previously mentioned, the Ministry of Transport will continue to thoroughly study and implement the series of important instructions of General Secretary Xi Jinping regarding the construction, management, maintenance and operation of roads in rural areas, and will implement a new round of programs for rural road upgrading. We are aiming to make rural roads better, safer, more attractive and more convenient, ensuring that rural residents can fully benefit from the outcomes of reforms and development.

Last, I would like to take this opportunity to express my gratitude to you for your interest in rural road development. We also welcome your oversight as we strive to address any problems that may occur. Thank you. 

Xing Huina:

Today's press conference is hereby concluded. Thank you to Mr. Li, all the speakers and our friends from the media. Goodbye everyone.

Translated and edited by Liu Caiyi, Huang Shan, Mi Xingang, Yuan Fang, Li Xiao, Ma Yujia, Yang Chuanli, Fan Junmei, Xiang Bin, Liu Sitong, Gong Yingchun, Zhang Junmian, Li Huiru, Jay Birbeck, David Ball and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Speaker:

Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and head of the Department of Comprehensive Statistics of the NBS

Chairperson:

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

Date:

Nov. 15, 2024

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we are joined by Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and head of the Department of Comprehensive Statistics of the NBS. Mr. Fu will brief you on China's economic performance in October 2024 and then take your questions.

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

Fu Linghui:

Friends from the media, good morning. It's my pleasure to attend today's press conference organized by the SCIO. As usual, I will start by briefing you on the main economic indicators for this October and then take your questions.

In October, economic performance maintained steady growth and major economic indicators showed a significant rebound. In October, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments strictly implemented the decisions and arrangements of the CPC Central Committee and the State Council, adhered to the general principle of pursuing progress while ensuring stability, and fully and faithfully applied the new development philosophy on all fronts. With the synergy created by the existing policies and incremental policies unfolding, major economic indicators of consumption, services and imports and exports recovered markedly, employment and prices were basically stable, social expectations continued to improve, high-quality development witnessed solid progress, and positive factors were accumulated. The national economy registered steady progress and recovery.

First, industrial production increased steadily and equipment manufacturing and high-tech manufacturing grew quickly.

In October, the total value added of industrial enterprises above designated size grew by 5.3% year on year, 0.1 percentage point lower than that of September, or up by 0.41% month on month. In terms of sectors, the value added of mining went up by 4.6% year on year, that of manufacturing was up by 5.4%, and that of the production and supply of electricity, thermal power, gas and water was up by 5.4%. The value added of equipment manufacturing went up by 6.6% year on year, and that of high-tech manufacturing was up by 9.4%, which were 1.3 percentage points and 4.1 percentage points faster than the total value added of industrial enterprises above designated size. In terms of ownership, the value added of state holding enterprises went up by 3.8% year on year; that of share-holding enterprises was up by 5.9%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 2.9%; and that of private enterprises was up by 4.8%. In terms of products, the production of new-energy vehicles, industrial robots and integrated circuits grew by 48.6%, 33.4% and 11.8%, respectively. In the first 10 months, the total value added of industrial enterprises above designated size grew by 5.8% year on year, the same as that in the first nine months. In October, the Manufacturing Purchasing Managers' Index was 50.1%, 0.3 percentage point higher than that of September; and the Production and Operation Expectation Index was 54.0%, up by 2.0 percentage points. In the first nine months, the total profits of industrial enterprises above designated size were 5,228.2 billion yuan, down by 3.5% year on year.

Second, the service sector accelerated notably and the modern services sector developed well.

In October, the Index of Services Production grew by 6.3% year on year, 1.2 percentage points higher than that of September. Specifically, that of financial intermediation grew by 10.2%, that of information transmission, software and information technology services was up by 9.5% and that of leasing and business services was up by 8.8% year on year, which were 3.9 percentage points, 3.2 percentage points and 2.5 percentage points faster than the Index of Services Production, respectively. In the first 10 months, the Index of Services Production increased by 5.0% year on year, which was 0.1 percentage point faster than that of the first nine months. In the first nine months, the business revenue of service enterprises above designated size grew by 7.2% year on year. In October, the Business Activity Index for Services was 50.1%, 0.2 percentage point higher than that of September. The Business Activity Expectation Index for Services was 56.2%, up by 1.6 percentage points. Specifically, the Business Activity Index for railway transportation, water transportation, air transportation, postal services, capital market services, ecological protection and public facilities management stayed within the high expansion range of 55.0% and above.

Third, market sales recovered rapidly and sales of new goods under the trade-in program accelerated.

In October, the total retail sales of consumer goods was 4,539.6 billion yuan, up by 4.8% year on year, 1.6 percentage points faster than that of September; or up by 0.41% month on month. In terms of different areas, the retail sales of consumer goods in urban areas were 3,925.5 billion yuan, up by 4.7% year on year; and in rural areas were 614.1 billion yuan, up by 4.9%. Grouped by types of consumption, the retail sales of goods were 4,044.4 billion yuan, up by 5.0%; and the income of catering was 495.2 billion yuan, up by 3.2%. Upgraded goods sold well. The retail sales of cosmetics and of sports and recreational items by enterprises above designated size grew by 40.1% and 26.7%, respectively. Driven by the consumer goods trade-in programs, the retail sales of household appliances and audio-video equipment, cultural and office supplies, furniture, and automobiles by enterprises above designated size went up by 39.2%, 18.0%, 7.4% and 3.7% respectively, which were 18.7 percentage points, 8.0 percentage points, 7.0 percentage points and 3.3 percentage points higher than that of September, respectively. In the first 10 months, the total retail sales of consumer goods were 39,896.0 billion yuan, up by 3.5% year on year, 0.2 percentage point faster than that of the first nine months. Online retail sales were 12,363.2 billion yuan, up by 8.8% year on year. Specifically, the online retail sales of physical goods were 10,333.0 billion yuan, up by 8.3%, accounting for 25.9% of the total retail sales of consumer goods. In the first 10 months, the retail sales of services grew by 6.5% year on year.

Fourth, investment in fixed assets increased steadily and investment in high-tech industries grew quickly.

In the first 10 months, investment in fixed assets (excluding rural households) reached 42,322.2 billion yuan, up by 3.4% year on year, which was the same as that of the first nine months. Investment in fixed assets was up by 7.6% with investment in real estate development deducted. Specifically, investment in infrastructure grew by 4.3% year on year, that in manufacturing grew by 9.3%, and that in real estate development declined by 10.3%. The floor space of newly-built commercial buildings sold was 779.30 million square meters, down by 15.8% year on year, 1.3 percentage points lower compared with that of the first nine months; the total sales of newly-built commercial buildings were 7,685.5 billion yuan, down by 20.9%, 1.8 percentage points lower. By industry, investment in the primary industry went up by 2.5% year on year, that in the secondary industry up by 12.2%, and that in the tertiary industry down by 0.9%. Private investment declined by 0.3% year on year, and increased by 6.3% with investment in real estate development deducted. Investment in high-tech industries grew by 9.3% year on year, of which investment in high-tech manufacturing and high-tech services grew by 8.8% and 10.6%, respectively. In terms of high-tech manufacturing, investment in manufacturing of aerospace vehicle and equipment and in manufacturing of electronic and communication equipment grew by 34.5% and 9.4%, respectively. In terms of high-tech services, investment in professional technical services and in e-commerce services grew by 32.0% and 16.3%, respectively. In October, 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 improve.

In October, the total value of imports and exports of goods was 3,700.7 billion yuan, up by 4.6% year on year, 3.9 percentage points faster than that of September. The value of exports was 2,189.9 billion yuan, up by 11.2%, and the value of imports was 1,510.8 billion yuan, down by 3.7%. In the first 10 months, the total value of imports and exports of goods was 36,021.9 billion yuan, up by 5.2% year on year. The value of exports was 20,802.8 billion yuan, up by 6.7%, and the value of imports was 15,219.1 billion yuan, up by 3.2%. In the first 10 months, the imports and exports in general trade went up by 3.9%, accounting for 64.1% of the total value of imports and exports. Imports and exports by private enterprises went up by 9.3%, accounting for 55.1% of the total value of imports and exports, 2.1 percentage points higher than that of the same period last year. Exports of mechanical and electrical products went up by 8.5%, accounting for 59.4% of the total value of exports.

Sixth, employment was generally stable and the surveyed urban unemployment rate declined.

In the first 10 months, the surveyed urban unemployment rate averaged 5.1%, which was 0.2 percentage point lower than that of the same period last year. In October, the surveyed urban unemployment rate was 5.0%, which was 0.1 percentage point lower than that of September. The surveyed unemployment rate of population with local household registration was 5.1% and that of population with non-local household registration was 4.8%, among which, the rate of the population with non-local agricultural household registration was 4.7%. The surveyed urban unemployment rate in 31 major cities was 5.0%, which was 0.1 percentage point lower than that of September. The employees of enterprises worked an average of 48.6 hours per week.

Seventh, consumer prices increased slightly and producer prices for industrial products declined year on year.

In October, the consumer price index (CPI) went up by 0.3% year on year, 0.1 percentage point lower than that of September; or down by 0.3% month on month. Grouped by commodity categories, prices for food, tobacco and alcohol went up by 2.0% year on year; clothing was up by 1.1%; housing was down by 0.1%; articles and services for daily use was up by 0.1%; transportation and communication was down by 4.8%; education, culture and entertainment was up by 0.8%; medical services and health care was up by 1.1%; and other articles and services was up by 4.7%. Among the prices for food, tobacco and alcohol, the price of grain went down by 0.7%, fresh fruits was up by 4.7%, pork was up by 14.2% and fresh vegetables was up by 21.6%. The core CPI excluding the prices of food and energy went up by 0.2% year on year, 0.1 percentage point higher than that of September. In the first 10 months, the CPI went up by 0.3% year on year.

In October, the producer prices for industrial products went down by 2.9% year on year, or down by 0.1% month on month, and the purchasing prices for industrial producers went down by 2.7% year on year, or down by 0.3% month on month. In the first 10 months, the producer prices and the purchasing prices for industrial products both dropped by 2.1% compared with the same period last year.

Generally speaking, with the accelerated implementation of the existing policies and the introduction of a raft of incremental policies in October, the national economy showed stable growth trend with major indicators recovering notably and positive factors accumulated. However, we should be aware that the external environment is increasingly complicated and severe, effective domestic demand is still weak and the foundation for continuous economic recovery needs to be strengthened. 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 take solid steps to advance high-quality development, accelerate efforts to create a new pattern of development, and redouble efforts to implement the raft of incremental policies, so as to consolidate and enhance the momentum for economic recovery and growth and achieve the annual economic and social development targets. Thank you.

Shou Xiaoli:

The floor is now open to questions. Please identify the media outlet you represent before asking your questions. Please raise your hand when asking your questions.

The Paper.cn:

China's economic performance has been generally stable since the beginning of this year, but, due to the complex and changing domestic and international environment, there have also been difficulties and challenges. How do you evaluate October's economic performance? What are the highlights and positive changes? Thank you.

Fu Linghui:

Thank you for your questions. Everyone is paying close attention to economic performance in October. Since the beginning of this year, the international situation has been complex and severe. Global economic recovery has eased up and the monetary policies of major economies have in turn entered the cycle of interest rate cuts. Meanwhile, the intertwining of trade protectionism, unilateralism and geopolitical conflicts has increased the uncertainty with the operation of the world economy. Domestically, the Chinese economy is in a critical period of structural adjustment and transformation. The transition between traditional and emerging growth drivers has been accelerated, and more difficulties and challenges that development faces have emerged. In response to these difficulties and challenges, the CPC Central Committee has made scientific decisions and has strengthened macroeconomic regulation and control. Especially after the meeting of the Political Bureau of the CPC Central Committee on Sept. 26, relevant departments have intensified efforts to introduce a package of incremental policies, resulting in an enhanced rebound with economic performance and key indicators as well as improving market confidence. Main indicators in October showed a trend of "three rebounds, two stables and one boost."

"Three rebounds" refer to notable rebounds in market sales, within the service sector and with imports and exports. In terms of market sales, driven by the trade-in policy for consumer goods, total retail sales of consumer goods in October increased by 4.8% year on year, up 1.6 percentage points compared with the previous month. Specifically, retail sales of goods increased by 5% year on year, up 1.7 percentage points compared with the previous month. The retail sales of services continues to show strong momentum, with a 6.5% year-on-year increase for the first ten months, outpacing the growth of retail sales of goods. In terms of the service sector, it has demonstrated a noticeable recovery trend. In October, the index of services production grew by 6.3% year on year, accelerating by 1.2 percentage points from the previous month and marking two consecutive months of increased growth. This represents the highest growth rate for the index so far this year. Driven by incremental policies, significant recoveries were observed in the indexes of production of the financial sector, real estate industry and the wholesale and retail sectors, with those of the wholesale and retail sectors improving by 2 percentage points, and those of the financial and real estate sectors increasing by more than 3 percentage points and 3 percentage points, respectively. From an import and export perspective, despite a slowdown in global trade growth, China's goods trade competitiveness continues to emerge. In October, the total volume of import and export goods increased by 4.6% year on year, accelerating by 3.9 percentage points from the previous month. Exports grew by 11.2%, accelerating by 9.6 percentage points.

"Two stables" refer to the stable growth of industry and investment as well as the stability of employment and pricing. Industry and investment are crucial to support economic development. In October, both industry and investment maintained stable growth, playing an important role in the steady progress of economic performance. In terms of industry, driven by factors such as large-scale equipment renewal and industrial upgrading, the added value of industrial enterprises above designated size increased by 5.3% year on year in October, maintaining rapid growth. Among them, the upgrading trend of manufacturing was obvious. Notably, high-tech manufacturing grew by 9.4% year on year, significantly outpacing the overall growth of industrial enterprises above designated size. In terms of investment, investment in key sectors has shown good growth momentum and has played a strong supporting role. From January to October, fixed asset investment increased by 3.4% year on year, maintaining a growth rate of 3.4% for three consecutive months, which indicates increased stability in investment growth. Investment in manufacturing grew by 9.3%, increasing slightly by 0.1 percentage point compared to the first nine months. Particularly, investment in high-tech manufacturing has grown rapidly, which will effectively promote industrial upgrading.

Employment and price stability have an important impact on the stable functioning of the economy. Regarding employment, the surveyed urban unemployment rate in October was 5%, down 0.1 percentage point from the previous month. The surveyed unemployment rate of the population with non-local agricultural household registration was 4.7%, significantly lower than the surveyed urban unemployment rate. In terms of consumer prices, influenced by a decrease in certain food and energy prices, the Consumer Price Index (CPI) in October rose by 0.3% year on year, with a slight decrease from the previous month. The core CPI, excluding food and energy, rose by 0.2% year on year, expanding by 0.1 percentage point from the previous month, showing positive changes.

"One boost" refers to the boost in market confidence. With the accelerated implementation of existing policies and the strong introduction of a package of incremental policies, October not only saw a noticeable recovery in major production and demand indicators but also a boost in market confidence. This was reflected in active stock and real estate market transactions as well as with the expectations of enterprises and consumers improving. The real estate market saw an increase in new housing sales and a significant improvement in second-hand housing transactions, with enhanced market activities. From January to October, the fall in sales of new commercial housing by sales area and sales value narrowed by 1.3 and 1.8 percentage points, compared with the first nine months. The substantial improvement in October was the first of the year. In terms of the capital market, it also saw a significant trend in recovery. In October, the stock trading volume and turnover in the Shanghai and Shenzhen stock markets increased by about 1.5 times year on year, making it the largest growth rate rebound this year. In terms of business entities' expectations, the purchasing managers' index (PMI) for the manufacturing sector was 50.1% in October, up 0.3 percentage point from the previous month. This is the first time that manufacturing PMI has returned to the expansion range since May of this year. In terms of consumer expectations, the consumer confidence index rebounded by 1.2 percentage points from the previous month, marking the first increase after six consecutive months of decline. These changes will greatly stimulate market vitality and drive economic upturn.

On the whole, under the influence of various policy measures taking effect, the national economy in October continued to make progress while ensuring steady performance, with significant rebounds in major economic indicators and boosts market confidence. However, it is also important to recognize that the international environment is still complex and severe while domestic demand remains weak, and some enterprises are facing operational difficulties. In the next step, we must implement the decisions and arrangements of the Party's Central Committee, intensify macroeconomic regulation, effectively utilize effects of various policies, expand domestic demand, strengthen innovation-driven development, consolidate and enhance the positive momentum of economic recovery, and promote high-quality economic development.

Thank you.

CCTV:

Since late September, the central government has introduced a raft of incremental policies. What role have these policies played on the national economic data in October? Also, how do you evaluate their performance? Thank you.

Fu Linghui:

Thank you for your questions. Recently, various departments have rolled out a package of incremental policies to promote economic upturn. With the accelerated implementation of existing policies and the launch of a package of incremental policies, major economic indicators in October have shown a significant rebound. Social expectations continue to improve, the quality of development has steadily enhanced, and positive factors have accumulated. The economy is stabilizing and recovering robustly. It can be said that the combined effect of these policies has been effectively unleashed, yielding substantial results. These results can be summarized in the following four aspects.

First, domestic demand has seen further expansion. Since October, the implementation of the "Two New" policy on "renewal & trade-in" (namely, large-scale equipment renewal and trade-in of old consumer goods) and the "Two major" initiative on carrying out major national strategies and building up security capacity in key areas has continued to play a positive role in releasing consumption potential as well as stimulating investment growth. In terms of consumption, driven by consumer goods trade-in programs, growth rates in October for units above designated size in household appliances, audiovisual equipment, automobiles, furniture as well as cultural and office supplies have all accelerated compared to the previous month. These four categories alone contributed 1.2 percentage points to the month-on-month acceleration of 1.6 in total retail sales for consumer goods, showing clear results and a more significant improvement than in September. In terms of investment, driven by large-scale equipment upgrades, investments in equipment and tools increased by 16.1% year-on-year from January to October, driving the growth of total investments by 2.1% and contributing to investment growth's rate exceeding 60%. Meanwhile, as the "Two Major" initiative continues to gain momentum, the physical workload of related projects has gradually taken shape, which has also driven the recovery of investment in infrastructure. The country's investment in infrastructure construction rose 4.3% from a year ago during the January-October period, 0.2 percentage point faster than the previous month, marking the first rebound of recent infrastructure investments. 

Second, production has seen further stimulation. Improved demand has driven positive production trends in related industries. For instance, the production of consumer goods linked to trade-in programs, such as new energy vehicles and home appliances, has seen rapid growth. Specifically, the production of new energy vehicles increased by 48.6% year-on-year, boosting the output of related industries such as charging piles by 25.2%. In household appliances, products like air humidifiers, room air conditioners and electric heating appliances have all seen double-digit production growth. In terms of the production of goods for investment, industries and products related to equipment upgrades have experienced significant growth. In October, the added value of smart consumer device manufacturing and shipbuilding, as well as related equipment industries, grew by 18.8% and 16%, respectively. The output of special equipment for processing agricultural products, traditional transportation machinery for excavating and shoveling and special equipment for packaging increased by 54.5%, 28.4% and 19.2%, respectively. These situations also reflect a strong boost in large-scale equipment renewal when it comes to production within the equipment industry.

Third, confidence has seen a further boost. As the effects of the package of incremental policies become increasingly apparent, market vitality has increased and confidence among businesses, consumers and investors has risen. For businesses, indexes such as Purchasing Managers' Index for the Manufacturing Sector and Business Activity Index for the Service Sector returned to expansionary territories in October. Among them, the manufacturing production and business activity expectations index reached a recent high point while the non-manufacturing business activity expectations index moved into a higher prosperity zone, reflecting growing confidence with market development. For consumers, the consumer confidence index has risen for the first time after six consecutive months of decline. At the same time, the capital market has warmed up, with transaction volumes and amounts in the Shanghai and Shenzhen stock markets reaching new highs in October. The growth rate of sales income from capital market services also has significantly increased by more than 10 percentage points compared to the previous month. Both of these reflect a gradual restoration of investors' confidence.

Fourth, development has seen further promotion. Overall, under the impetus of a series of policy combinations, the national economy in October maintained stability and saw progress, with momentum for economic recovery strengthened. At the same time, under policy support, the quality of development has also been steadily improved. In the context of updates to automobile scrapping and trade-in programs, most users have opted for new energy vehicles, driving a rapid increase in sales of new energy vehicles in October, with domestic retail penetration exceeding 50% for four consecutive months. Sales of high-efficiency, energy-saving home appliances compliant with low-carbon requirements have achieved double-digit, year-on-year growth, adding momentum to green development. Additionally, the "Two Major" initiative has strongly supported the construction of high-standard farmland, underground pipeline networks, urban renewal and other welfare projects, stabilizing growth in investment within the welfare sector. Moreover, the real estate market has been stabilized, local governments have been orderly progressing in their efforts with debt management, risks in key areas have been gradually resolved, and the foundation for safe development has been consolidated.

In the next stage, as various regions and departments intensify the implementation of policy measures, the effects of these policies are expected to continue to be felt. However, it must also be recognized that the external environment remains complex and severe, with the internal driving forces of the economy still needing to be strengthened further. We must further enhance our sense of responsibility and urgency, make full use of the comprehensive package of incremental policies, maximize policy effectiveness and promote a favorable economic rebound. Thank you.

Yicai:

This year's government work report set the annual economic growth target at around 5%. Based on the economic data for the first ten months of this year, what is your view on the fourth quarter's trend? Additionally, do we currently have the positive and favorable conditions to achieve the annual target? Thank you.

Fu Linghui:

Thank you for your questions. The realization of this year's economic growth target is of great concern. This year, in the face of complex changes within the international environment as well as new situations and challenges within the domestic economy, under the strong leadership of the Party Central Committee, various regions and departments have strengthened counter-cyclical adjustments. As a result, the national economy has maintained a stable and progressive growth trend overall. GDP grew by 4.8% year on year in the first three quarters, laying a solid foundation for achieving the annual development goal. From economic changes in September and October, particularly in October, we have gained further confidence in achieving the annual economic development target. The confidence comes from several aspects:

First, the momentum for economic recovery has been strengthened. From major indicators in October, the service industry showed a clear recovery. The service sector production index in October increased by 1.2 percentage points compared to the previous month, representing the highest growth rate this year as well as a continuing acceleration in growth rate for two consecutive months. Driven by relevant policies, the financial industry production index accelerated by 3.7 percentage points while the real estate production index showed a year-on-year increase of 0.8% this month, marking the first time since June of last year that the industry shifted from decline to growth. Market sales also accelerated, driven by favorable factors such as the policy for consumer goods trade-in programs, the National Day holiday and early "Double Eleven" promotional activities. In October, the total retail sales of consumer goods increased by 4.8% year on year, 1.6 percentage points faster than the previous month, with retail sales of goods accelerating by 1.7 percentage points. With the recovery of market demand, the coordination between enterprise production and sales has improved. In October, the production-sales ratio of industrial products above a designated size reached 97.3%, up by 1.3 percentage points from the previous month, attaining the second-highest level this year. At the same time, driven by "Two Major" construction, infrastructure investments increased by 4.3% year on -year from January to October, seeing an acceleration compared to the period between January and September.

Second, the effectiveness of macroeconomic policies has become noticeable. In the face of new issues and challenges in this year's economy, the Party Central Committee has taken a comprehensive view, confronted difficulties, made scientific decisions and acted promptly. A package of incremental policies has been launched and is steadily being implemented. October was the first month after the introduction of these policies. From that month's data, we can see that the effects from these policies are beginning to show. Major economic indicators have seen a significant rebound, especially in sectors related to the "Two New" and "Two Major" policies, such as significant growth in sales of automobiles, home appliances and office supplies. Investments in infrastructure such as water conservancy, ecological protection and roads have also shown steady growth. In the next phase, as various policies are fully implemented and yield results, the combined policy effects will further emerge and the positive factors and favorable conditions in economic operations will continue to increase, providing strong support for the economic recovery and growth in the fourth quarter.

Third, confidence with marketplace expectations has seen a boost. Confidence is a key factor in consolidating and enhancing the momentum of economic recovery. After the recent series of incremental policies were officially launched, market activity noticeably increased. The real estate market has warmed up, the capital market has rebounded and both business and consumer confidence have improved. In October, the volume of real estate consultations and property viewings significantly increased, while the sales area and sales volume of commercial housing improved considerably. The trading volume and value on the Shanghai and Shenzhen stock exchanges also grew sharply. The manufacturing's PMI and the service sector's Business Activity Index both rose into the expansion zone, and the consumer confidence index also showed an uptick for the first time in recent months. As long as confidence is present, businesses will be willing to expand investment and production, while consumers will be willing to spend, which will strongly drive economic recovery.

In the next phase, we will earnestly implement the Party Central Committee's decisions and arrangements, further strengthen the implementation of various policy measures and reinforce policy coordination, continuously consolidating the momentum of economic recovery and growth and striving to achieve the annual economic growth target.

Thank you.

Market News International:

How does the National Bureau of Statistics analyze the current real estate market performance? Have real estate-related indicators bottomed out? And what further policies are expected to promote the real estate market stabilization and recovery?

Fu Linghui:

Thank you for your questions. The real estate market is a hot topic that attracts a lot of attention. The Party Central Committee attaches great importance to the healthy development of the real estate market. At the meeting of the Political Bureau of the Central Committee on Sep. 26, it was emphasized that multiple measures should be taken to "promote the stabilization and recovery of the real estate market." Relevant departments have been working quickly to improve policies related to land, taxation and finance, focusing on the implementation of stock policies and the introduction of incremental policies, thus creating a comprehensive approach. As these policies are gradually implemented, confidence in the real estate market has been boosted and market transactions have become more active, leading the real estate market moving toward stabilization and recovery.

On the sales side, market vitality has improved significantly. Down payment ratios and mortgage interest rates have been lowered. Measures restricting house purchases, sales and pricing have been lifted, effectively ensuring people's needs for basic and improved housing. In October, the real estate transactions accelerated. From January to October, compared to the decline in the first nine months, the year-on-year decline in sales area and sales value of new commercial housing narrowed by 1.3 and 1.8 percentage points, respectively. This marks the greatest monthly improvement for the year. According to the sales situation in 40 key cities monitored, improvements are more significant in second-tier cities that previously experienced with greater price corrections. In October, monthly sales area saw growth and sales value's decline narrowed significantly. Driven by gradually stabilized prices, the sales value of first-tier cities in October realized growth. According to data from relevant departments, transactions of second-hand houses improved remarkably in October.

In terms of the prices, housing prices showed initial signs of stabilization. In October, among 70 large and medium-sized cities, four more cities, compared to the previous month, saw monthly growth in sales prices with new commercial housing, and eight more cities saw monthly growth in prices of second-hand houses. Among first-tier cities, the month-on-month decrease in sales prices of new commercial housing narrowed, and sales prices of second-hand houses ceased to drop and started to rise in comparison to the previous month. For second- and third-tier cities, the monthly decrease in sales prices of new commercial housing and second-hand houses narrowed to varying degrees. The recovery in sales and stabilization of prices have led to an improvement in the cash flow of real estate enterprises. In the first 10 months, the year-on-year decrease in funds raised by real estate development enterprises narrowed by 0.8 percentage point compared to the first nine months. Closely related to property sales, decrease in earnest money, advance payments and personal mortgage loans all narrowed by 2.1 percentage points.

In terms of expectations, the real estate market sentiment has improved. According to PMI data, the business activity index for the real estate sector saw an improvement of 2.5 percentage points in October compared to the previous month, and the market expectation index rebounded by 1.8 percentage points, indicating an improvement in the climate level of the real estate sector as well as in marketplace expectations. In October, a survey on property development enterprises and real estate agencies across 70 large and medium-sized cities showed that the proportion of surveyed employees anticipating stable or rising sales prices for both new commercial housing and second-hand homes in the next six months further grew from the already increased proportions in September by 17.6 and 15 percentage points, respectively. This indicates that related business institutions have a growing confidence in the real estate sector.

In general, a package of measures to stabilize the real estate market is proving effective. Positive changes in the real estate sector emerged in October. As the effects of these policies continue to unfold, the momentum driving the stabilization of the real estate market will be enhanced. Therefore, we are optimistic on the future development of the real estate sector. However, it should be noted that, after long-term rapid expansion, the real estate market has entered a new stage of development and will pivot from quantitative expansion to qualitative improvement to better satisfy people's diverse housing needs. Moving forward, we will diligently implement the decisions and arrangements of the CPC Central Committee and the State Council, adapting to the reality of profound changes in the supply and demand relationship of the real estate sector. We will strictly control expansion, optimize existing resources and improve the quality of housing. We will coordinate efforts to refine policies regarding land use, taxation and financing to quickly foster a new development model for the real estate sector and to promote the steady and healthy development of the sector. Thank you.

N Videos at Southern Metropolis Daily:

We have noticed that the year-on-year increase in the CPI in October fell slightly compared to the previous month. What are the reasons behind this? How do you view the current price level? And what is your prediction for future development? Thank you.

Fu Linghui:

Thank you for your questions. Impacted by fluctuations in food and energy prices, the CPI experienced a slight year-on-year and month-on-month decrease in October. Though, this monthly change is normal.

In terms of monthly changes, the October CPI was down by 0.3%, same as the previous month. Food prices had the biggest impact. The monthly decrease in food prices was 1.2% and this was the main factor causing the monthly decrease of the CPI. Prices for pork, fresh vegetables, fresh fruit and aquatic products saw monthly decreases ranging from 1% to 3.7%, accounting for 0.2 percentage point or around 70% of the overall CPI decrease. This was mainly because the prices for certain types of fresh food went up due to extreme weather in September, with the prices then falling in October as the impact of extreme weather disappeared.

In terms of year-on-year changes, the October CPI rose by 0.3% over the same period and was 0.1 percentage point lower than the previous month. The slower year-on-year growth is mainly attributed to the fall in food and energy prices. In October, food prices rose by 2.9% year on year, 0.4 percentage point lower than the previous month, accounting for 0.1 percentage point of a narrow CPI increase. Among all food categories, prices for fresh vegetables, fresh fruit and pork saw their year-on-year increases fall in comparison to the previous month. In October, the decrease in energy prices expanded by 1.6 percentage points in comparison to the previous month, which also contributed to the lowered increase of CPI.

Excluding food and energy, prices for most products and services remained stable or slightly improved. The core CPI rose by 0.2% year on year in October, 0.1 percentage point higher than the previous month, showing a slight recovery. Service prices rose by 0.4% year on year in October, 0.2 percentage point higher than the previous month. The rental of vehicles rose by 3.2%, presenting a small increase which was driven by holiday consumption booms during the month.

Overall, consumer prices remained relatively stable in October, with prices in some sectors exhibiting small increases that were driven by boosts in demand. In the next phase, China is expected to have a bumper harvest, and the supply of live pigs and fresh vegetables is expected to be stable. As winter and New Year's Day approach, food prices will likely stabilize at a slightly higher level. In terms of industrial consumables, energy prices could be impacted by import prices, although most products will be able to maintain sufficient supply and stable prices. Supply of services will be generally stable. As the economy improves, it will drive increased demand for services, thus drive up service prices. Considering all these factors, the CPI will maintain a trend of mild increases in the future.

Thank you.

CNBC:

Has the consumption sector seen a clear upward trend? Thank you.

Fu Linghui:

Thank you for your question. Consumption is a matter of great interest to everyone, and has also emerged as a major bright spot in the economy. In October, the consumer goods trade-in program, the National Day holiday, the early launch of the annual Double 11 shopping festival, and the warming stock and property markets were among the major factors bolstering consumer confidence. In October, the growth rate of market sales picked up significantly, the growth of commodity retail sales accelerated, and service retail sales maintained fast growth, with consumption playing a large role in driving the economy. This was mainly reflected in the following aspects:

First, market sales accelerated significantly. In October, total retail sales of consumer goods increased by 4.8% year on year, 1.6 percentage points higher than the previous month. Commodity retail sales increased by a large margin, 1.7 percentage points faster than September. Sales of upgraded commodities registered fast growth. In October, the retail sales of cosmetics, and sports and entertainment goods by enterprises above designated size increased by 40.1% and 26.7%, respectively.

Second, the consumer goods trade-in program played a significant role in boosting market sales. Through trade-in policies in the automobile, household appliance, and home decoration sectors, the retail sales of household appliances, automobiles, stationery and office supplies and furniture by enterprises above designated size contributed 1.2 percentage points of the overall growth of retail sales in October, an increase significantly larger than the previous month.

Third, new types of consumption flourished. The fast development of new business models and forms, such as instant retail and livestreaming sales, boosted online consumption. In the first 10 months, online retail sales of physical goods increased by 8.3% year on year, 0.4 percentage point higher than for the January-September period. Meanwhile, with changes in people's thinking toward consumption, environmentally friendly and health-related consumption is booming, leading to strong growth in sales of relevant commodities. In the first 10 months, sales of NEVs and smart home appliances continued to grow quickly.

Fourth, service retail sales registered fast growth. Increased travel and robust cultural and tourism consumption during the National Day holiday supported the rapid growth of service retail sales. During this year's National Day holiday period, domestic trips and total tourist spending increased by 5.9% and 6.3% year on year, respectively, on a comparable basis; and the number of commercial performance viewers nationwide increased by 13.3%. In the first 10 months, service retail sales surged 6.5% year on year, maintaining a faster growth rate than commodity retail sales. Specifically, retail sales for transportation and information transmission service sectors both maintained double-digit growth.

Overall, market sales accelerated significantly and consumer confidence improved in October, which helped stabilize and boost the economy. However, factors that hinder consumption development still remain, such as limited consumer willingness and purchasing power. Next, we will actively promote high-quality and full employment, support sustained household income growth, give full play to the consumer goods trade-in program, and improve residents' propensity to consume. Meanwhile, we will strive to improve the quality of commodities and services, better satisfy the needs of upgrading consumption, and unleash the potential of consumption, so as to promote sustained and sound economic growth. Thank you.

21st Century Business Herald:

How do you view the investment situation in October? You mentioned earlier that the cumulative growth rate of infrastructure investment rebounded for the first time in October. Can this recovery be sustained in the future? In addition, what impacts have the large-scale equipment upgrades and consumer goods trade-in program, as well as the policies to implement major national strategies and build up security capacity in key areas, had on investment? Thank you.

Fu Linghui:

Thank you for your questions. Investment is also an important part of the economy. In the first 10 months, although investment in the real estate was declining, China's overall investment scale continued to expand due to the large-scale equipment upgrade program, the innovation-driven development, and industrial upgrading and development. Investment in manufacturing and large projects grew rapidly; and investment in innovation continued to increase. All these supported the stable growth of investment and created favorable conditions for the country's high-quality development. The first 10 months can be categorized as follows:

First, investment expansion continued to stabilize. Fixed-asset investment (excluding rural households) rose 3.4% year on year in the first 10 months. The growth rate maintained at 3.4% for three consecutive months, showing a clear stable trend. We can see that investment has generally registered a downward trend so far since the start of this year, but it has been basically stable for the past three months. Large project investment played an important role in supporting investment expansion. In the first 10 months, the completed investment in projects with a planned total investment of more than 100 million yuan increased by 7.1% year on year, driving the growth of total investment by 3.8 percentage points and promoting stable investment growth.

Second, the policy effect of driving investment was reinforced. The policy effect of the large-scale equipment upgrade program has continued to manifest. In the first 10 months, investment in purchasing equipment, tools and instruments jumped 16.1% year on year, significantly faster than the overall investment growth. Such investment accounted for 14.8% of total investment and contributed more than 60% of overall investment growth. The steady progress in implementing major national strategies and building up security capacity in key areas drove the rebound of infrastructure investment. During the January-October period, investment in infrastructure construction rose 4.3% year on year, 0.2 percentage point faster than September, and marking the first rebound since March. As seen from the current situation, with the release of various policies and the recent progress in local debt relief, the infrastructure capacity of local governments will continue to improve, providing favorable conditions and a basis for the stable growth of infrastructure investment.

Third, manufacturing investment increased rapidly. Driven by industrial upgrading and development, investments in equipment manufacturing and consumer goods manufacturing registered a positive growth momentum, which supported the development of manufacturing investment. In the first 10 months, manufacturing investment increased by 9.3% year on year, 0.1 percentage point faster than the January-September period. In particular, investments in equipment manufacturing and consumer goods manufacturing grew 9.1% and 15%, respectively.

Fourth, investment in high-tech industries remained active. All localities have actively fostered and strengthened new quality productive forces, investing more in technological innovations and striving to stay ahead of the curve in industrial development, driving the growth of investment in high-tech industries. In the first 10 months, investment in high-tech industries increased by 9.3% year on year, significantly faster than the overall investment growth. Specifically, investment in aircraft, spacecraft and equipment manufacturing increased by 34.5%; investment in professional technical services increased by 32%; and investment in research, development and design services increased by 11%.

Overall, China's investment maintained stable growth recently, with the investment structure continuing to improve. Next, as the combined effects of existing policies and a raft of incremental policies become apparent, investment funding guarantees and project support will gradually improve, and the growth of investment is expected to continue.

Thank you.

Shou Xiaoli:

Let's continue. Due to the limited time, we will take two final questions.

The Poster News APP:

What do you think of the highlights of last month's industrial data and the overall situation of China's current industrial production? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, China's industrial production has witnessed rapid growth, marking an important highlight of economic performance. Judging from the situation in October, market demand has picked up under the impetus of policies. Business expectations have improved, industry has remained steady and grown rapidly, and the manufacturing industry has upgraded and developed. The equipment manufacturing industry and high-tech manufacturing industry have played an important supporting role. This was mainly reflected in the following aspects:

First, the industrial sector maintained steady and rapid growth. In October, the added value of industrial enterprises above designated size increased by 5.3% year on year, with a slight slowdown in the growth rate. The slowdown in October can mainly be attributed to the normalization of power production following a surge in September driven by extreme weather. In terms of the three major industrial categories, the growth rate of the production and supply of electricity, heat, gas and water declined, while the growth rates of the mining and manufacturing industries accelerated compared to the previous month. In terms of growth momentum, the market recovery in October led to an increase of 5.4% year on year in the added value of manufacturing above designated size, 0.2 percentage point higher than the previous month. At the same time, the pull of exports on production continued to be evident. In October, the delivery value of industrial exports above designated size increased by 3.7% year on year, 0.3 percentage point higher than the previous month.

Second, the industrial structure has been continuously improved. This is mainly reflected in the growth momentum of equipment manufacturing. Under the policy drive of industrial upgrading and the promotion of large-scale equipment renewal, production in the equipment manufacturing industry has maintained steady growth. In October, the added value of the equipment manufacturing industry increased by 6.6% year on year, continuing to outpace the overall industrial sector above designated size. Among them, the automobile manufacturing industry, the computer communications and other electronic equipment manufacturing industries grew by 6.2% and 10.5%, respectively. The development of the equipment manufacturing industry has not only supported rapid industrial growth but also contributed to improved industrial production efficiency.

Third, new industrial momentum is growing at an accelerated pace. Under the policy of high-quality industrial development, China's manufacturing industry is making a clear shift toward higher-end, intelligent and green development, with new growth drivers continuously accumulating. In October, the added value of high-tech manufacturing increased by 9.4% year on year. Among them, the output of integrated circuits and industrial robots increased by 11.8% and 33.4% year on year, respectively. The production of smart devices and green products continues to grow rapidly. In October, the added value of the unmanned aerial vehicle (UAV) manufacturing industry increased by 41.9%. Meanwhile, the production of NEVs and solar cells grew by 48.6% and 13.2%, respectively.

Fourth, industrial sentiment is on the rise. Against the background of the accelerated implementation of a raft of incremental policies and improved market demand, the connection between production and sales in industrial enterprises has been strengthened, leading to a recovery in industrial sentiment. In October, the production and sales rate of industrial enterprises above designated size increased by 1.3 percentage points compared to September. The Manufacturing Purchasing Managers' Index has risen back into the expansionary range. The Manufacturing Business Outlook Index increased by 2 percentage points compared to the previous month, showing a significant rise.

Overall, in October, industry experienced steady and relatively fast growth, high-quality development progressed steadily, and new growth drivers continued to emerge. However, it is also important to note that industrial enterprises are still facing challenges such as low market prices and difficulties in improving profitability. Next, it is important to effectively implement various policies supporting industrial development, focus on expanding domestic demand, consolidate and strengthen positive changes, and promote high-quality industrial development. Thank you.

Shou Xiaoli:

Last question, please.

Red Star News:

The month-on-month decline in PPI narrowed significantly in October, while the year-on-year decline widened slightly. What are the reasons behind this? And how do you forecast the trend of PPI in the next stage? Thank you.

Fu Linghui:

Thank you for your questions. There is considerable interest in PPI prices. Due to the downward fluctuation of international crude oil prices and increased competition in certain domestic industries, the industrial producer prices in China decreased by 2.9% year on year in October, with the decline slightly widening compared to the previous month. Among them, industries that are more affected by international input factors saw a larger decline in prices, particularly in the energy sector. In October, prices in the oil and natural gas extraction industry dropped by 14.6%, while prices in the oil, coal and other fuel processing industries decreased by 13.9%. Both declines widened by 4.5 percentage points compared to the previous month. At the same time, technological advancements in some domestic industries are accelerating, and market competition is intensifying, which has led to a further widening of price declines. This has also had an impact on PPI to some extent. In October, the prices in the automobile manufacturing industry decreased by 3.1% year on year, with the decline widening by 0.8 percentage point compared to the previous month.

Although the year-on-year decline in prices slightly widened in October, the accelerated implementation of a raft of incremental policies has begun to show effects in expanding demand for relevant industries, leading to positive price changes in some sectors. For example, prices for steel and cement have stopped falling and started to rebound. In October, the prices in the ferrous metal smelting and rolling processing industry increased by 3.4% month on month, marking the first month-on-month rise after four consecutive months of decline. The prices in the non-metallic mineral product industry rose by 0.4% month on month, marking the first increase after three consecutive months of month-on-month declines.

Overall, due to the combined effects of the downward input of international commodity prices and domestic policies aimed at expanding demand, PPI remained broadly stable in October. In some sectors, there were even signs of prices stabilizing and starting to rebound. Next, to address the sluggish PPI trend, it is essential to actively leverage various policy measures, further expand domestic demand, and deepen supply-side structural reforms. This should include strengthening innovation-driven development, vigorously promoting capacity adjustment, and fostering a high-level dynamic balance between supply and demand. These efforts will help stabilize and rebound prices, improve business profitability, boost the confidence of enterprises, and contribute to the sustained and healthy development of the economy.

Thank you.

Shou Xiaoli:

Today's briefing is hereby concluded. Goodbye.

Translated and edited by Wang Ziteng, Chen Xinyan, Liao Jiaxin, Xiang Bin, Liu Sitong, Li Xiao, Wang Xingguang, Yuan Fang, Huang Shan, Ma Yujia, Zhou Jing, Li Huiru, Wang Yiming, Wang Qian, David Ball 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 president of the 9th Asian Winter Games Harbin 2025 Organizing Committee and vice president of the Chinese Olympic Committee

Mr. Han Shengjian, vice president of the 9th Asian Winter Games Harbin 2025 Organizing Committee and vice governor of Heilongjiang province

Mr. Wang Hesheng, vice president and secretary-general of the 9th Asian Winter Games Harbin 2025 Organizing Committee and mayor of Harbin

Ms. Zhang Haihua, deputy secretary-general of the 9th Asian Winter Games Harbin 2025 Organizing Committee and vice mayor of Harbin

Chairperson:

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

Date:

Oct. 29, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). The 9th Asian Winter Games will be held in Harbin, Heilongjiang province, in 2025. As we approach the 100-day countdown to the Games, we are delighted to have with us Mr. Zhou Jinqiang, vice president of the organizing committee and vice president of the Chinese Olympic Committee; Mr. Han Shengjian, vice president of the organizing committee and vice governor of Heilongjiang; Mr. Wang Hesheng, vice president and secretary-general of the organizing committee and mayor of Harbin; and Ms. Zhang Haihua, deputy secretary-general of the organizing committee and vice mayor of Harbin. They will brief you on preparations for the 9th Asian Winter Games.

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

Zhou Jinqiang:

Ladies and gentlemen, friends from the media, good morning. The 2022 Beijing Winter Olympics were successfully held under the strong leadership of General Secretary Xi Jinping, the CPC Central Committee and the State Council, marking a leap forward in China's ice and snow sports development and making the vision of 300 million people participating in ice and snow sports a reality. The 9th Asian Winter Games Harbin 2025, represents another major winter sports event hosted by China following the 2022 Beijing Winter Olympics. I would now like to provide a brief overview of some relevant points.

First, the continued growth of China's ice and snow sports in the post-Winter Olympics era.

This is primarily reflected in the wide scope of participants, extensive facility coverage, numerous events and strong influence. Driven by the Beijing Winter Olympics, winter sports have transformed from a niche activity to a mainstream one, with youth participation in particular rising significantly, bringing new vitality to the promotion of winter sports. Ice and snow facilities have overcome seasonal and geographical limitations, with continuous improvements in quality and diversity, creating a favorable trend of nationwide, year-round availability. During the 2023-24 snow season, a total of 82 national winter sports events were held across China, along with 21 international events. During the 10th National Public Ice and Snow Season, over 2,000 winter sports events were organized nationwide, sparking a new wave of enthusiasm for winter sports. Last Friday, on Oct. 25, the State Council executive meeting deployed measures aimed at stimulating the vitality of the ice and snow economy with the high-quality development of winter sports, which received a strong response. This will undoubtedly further unleash the potential for winter sports consumption and drive the high-quality growth of the ice and snow economy. With the continued progress of the strategy to expand winter sports southward, westward and eastward, industries related to winter sports culture, equipment and tourism are expected to flourish, making new contributions to building China into a country strong in sports.

Second, the national team is undergoing high-quality training and preparation for the Games.

The 9th Asian Winter Games Harbin 2025 will serve as a critical training ground for the national team's preparations in the lead-up to the Milan Winter Olympics, playing a vital role in identifying talent, strengthening teams and assessing our readiness. To achieve our goal of hosting a spectacular event and competing with excellence, we will field over 170 athletes across all 64 events, aiming for both strong performances and good sportsmanship. In training and preparation, the General Administration of Sport integrates promoting moral and ethical standards into daily management, adhering to the "San Cong Yi Da" training principle — which refers to a high-volume of scientific training, which emphasizes difficulty, strictness and realistic situations — throughout the entire preparation process. Leveraging the advantages of the new system for mobilizing resources nationwide, the General Administration of Sport and local authorities have jointly established multiple national teams for winter sports, enhancing overall training efficiency. In terms of athlete selection, we uphold openness, fairness and transparency, coordinating some events with the Milan Winter Olympics qualifiers, scientifically developing selection methods, and subjecting the process to public oversight to ensure the strongest lineup. Regarding sportsmanship and anti-doping, we increase our awareness of potential risks and of the lines that are not to be crossed, thoroughly reviewing potential risks and implementing targeted measures to ensure clean competition.

Third, high-standard work with the organization of the Games

We are committed to implementing the principle of green, inclusive, open and clean as well as the requirement to deliver a streamlined, safe and splendid game throughout the entire process. Currently, the venues have been designated. Five venues in Harbin will host ice sports competitions and eight venues in Yabuli will host snow sports competitions. Venue crews have been established, with skilled and experienced staff members selected for the venues' operations. Related preparations are progressing as planned. From September this year to January next year, the organizing committee will conduct 14 test events to assess venue operations, equipment and facilities, local support, and command and dispatch, helping gain experience for the Games. 

So far, over 1,500 athletes from 34 countries and regions have registered. We are looking forward to the 9th Asian Winter Games in Harbin and wish it a success. 

Thank you. 

Shou Xiaoli:

Now, let's give the floor to Mr. Han. 

Han Shengjian:

Friends from the media, thank you for your interest in and support for Heilongjiang province's opening-up and revitalization as well as the preparation of the 9th Asian Winter Games, which will take place from Feb. 7 to 14 in Harbin, Heilongjiang province. The province has attached great emphasis on the preparation for the Games, and has established a leadership group under the main heads of the CPC Heilongjiang Provincial Committee and the provincial government. We will earnestly implement General Secretary Xi Jinping's important directives on sports, uphold the concept of hosting a "green, inclusive, open and clean" game, and implement the requirements of delivering a "streamlined, safe and splendid" game. With strong support from the General Administration of Sport of China and other organizing committee units as well as other parties, the organizing work has been pushed forward with high standard, high quality and high efficiency. Next, I will focus on three aspects. 

In terms of venues, all the venues are now ready to go. Balancing the needs of the Games with post-event use, we adhere to the principles of greenness and frugality. All 13 venues use energy-saving, environment-friendly materials, green, low-carbon technology and are existing infrastructures that have been renovated rather than large-scale construction. For example, we have renovated the Harbin Sport University's college students ice skating rink to serve as the ice hockey competition venue for the Games, which effectively saves costs and improves the institute's ice and snow sports facilities.

Currently, all renovations have been completed and have already passed inspections. We are now conducting all kinds of test events with real-game standards as well as advancing comprehensive, full-process and full-capacity pressure tests to ensure efficient event support. 

In terms of event services, we are building a professional and meticulous service support system. The Games will feature six major categories, 11 sub-categories and 64 minor categories. So far, over 1,500 athletes from 34 countries and regions have registered, setting potential records for participation in the Asian Winter Games. 

We have trialed the IT Command Center for the Games, established efficient and convenient procedures for foreign personnel's arrival and departure and published operation guides for the athletes', technical officials' and media's villages, along with service plans covering food, accommodation, transportation, healthcare and language support. Our goal is to provide all guests with a welcoming experience.

With cultural exchange, we are organizing diverse, unique international cultural exchange events. During the Games, we will host a range of activities such as Heilongjiang provincial intangible cultural heritage experiences, ice acrobatics, opera parades and a Lantern Festival celebration at locations like the Athlete Village and the Ice and Snow World. All these will help athletes and journalists from across Asia to understand Heilongjiang culture, fostering intercultural understanding and friendship.

The spillover effects of the Asian Winter Games are gradually appearing, with a surge of interest in winter tourism to Heilongjiang from Asian countries and regions. For instance, tens of thousands of tourists from Malaysia, Thailand and Cambodia are expected to travel to Harbin on special flights this winter. We are deepening exchange and cooperation with Asian countries and regions in fields such as ice and snow economy, cultural tourism, and trade and investment, striving for mutual benefits and to further expand high-level openness.

We firmly believe that under the strong leadership of the CPC Central Committee and the State Council, and with the joint efforts of all parties, we will complete all preparatory tasks and deliver to the world a great event that is distinctly Chinese, uniquely Asian and spectacular. Thank you.

Shou Xiaoli:

Next, Mr. Wang Hesheng will make an introduction.

Wang Hesheng:

Hello, friends from the media! Thank you all for your long-term care and support for Harbin.

Following the 3rd Asian Winter Games (AWG) in 1996, Harbin is once again hosting the Games. Under the strong leadership and support of the CPC Central Committee and the State Council, and with the great help from the General Administration of Sport of China and other ministerial-level departments, we have been advancing all preparatory work carefully, smoothly and in an orderly manner, fully implementing the deployment of the Heilongjiang provincial Party committee and provincial government and stressing "simplicity, safety and excellence" as our primary guidelines.

First, we have optimized the urban environment. Various initiatives have been launched to enhance the city's environment, including repairing roads and bridges, upgrading pipeline networks and carrying out afforestation, environmental purification and landscaping projects. Illegal building and roadside stall businesses have been cleared, parking spaces have been created, and roadways and sidewalks have been opened up. Main streets like Youyi Road and Hongqi Street are now smoother. Over 4,000 kilometers of water, electricity, gas and heating pipelines have been upgraded, 1,683 hectares of green areas have been cleaned and 27 new parks have been established. The cityscape around the venues and the Songhua River continues to improve, with historical and cultural districts, such as the Central Street and Chinese-Baroque Historic Block, showcasing unique urban charm.

Second, we have enhanced hospitality services. 36 hotels have been designated for the accommodation, with social lodging resources including guesthouses, homestays and university accommodations fully utilized. Parking facilities of government departments, enterprises and public institutions will be shared to meet the demands from both sporting events and tourism. Various organizations have actively contributed to the preparation for the AWG. We have also coordinated with civil aviation and railway departments to increase flights and train services to Harbin as per event requirements. Over 6,000 domestic and international university students and experienced volunteers, including volunteers from Beijing universities, have been recruited to provide top-notch services for the AWG.

We have strengthened security measures. Focusing on building structures, environmental protection and food safety, two rounds of safety evaluation have already been conducted on the competition venues. All decorative materials used meet environmental standards, 69 food supply enterprises from 14 categories have been strictly selected and foodborne doping tests have been intensified. Weather forecasting and preparations for extreme winter conditions and road de-icing have been strengthened to ensure smooth operations during the competitions.

We have promoted social participation. Activities such as the "Four Doorstep Assignments" for merchants and hospitality service training across various sectors have been launched. A strong sense of hospitality and anticipation for the AWG is growing within the community. With 100 days left until the start of the Games, more than 100 ice and snow festival events, including the 2024-2025 Ice and Snow Season, the 41st Harbin International Ice and Snow Festival and the Winter Triathlon World Cup, will be held. Harbin Ice and Snow World will introduce new cultural tourism products to enhance the synergy between ice and snow tourism and the AWG.

Dream of winter, love among Asia. Harbin warmly invites friends from all over the world to gather in this winter wonderland to enjoy the excitement of the Asian Winter Games together!

Thank you!

Shou Xiaoli:

Next, we will move on to questions. Please state the name of your news organization before asking questions. Feel free to now raise your hands.

National Business Daily:

We know that just over three months remain before the 9th Asian Winter Games take place. Could you please inform us about the organization process for the competitions and registration statistics of the Games? Additionally, what new changes can be expected in comparison to previous games? Thank you.

Zhang Haihua:

Thank you for your questions. The organization for the competitions of the Games is progressing smoothly and is in line with expectations. The competition schedule has been preliminarily set and 14 individual test events under the theme "Igniting Harbin" are underway. Two test events for men's and women's ice hockey have already concluded. Compared with previous games, the 2025 AWG feature the following three new changes:

First, the newly added sporting events get the most attention. Among the events planned for this Asian Winter Games, 31% of the sub-items are making debuts, including two speed skating events, one short track speed skating event, one curling event, three ski mountaineering events, nine freestyle skiing events and four snowboarding events. Notably, the three ski mountaineering events not only are new to the Asian Winter Games but have also been confirmed for the 2026 Milan Winter Olympics, making this Asian Winter Games a crucial testing ground for athletes who will compete in the Milan Winter Olympics.

Second, the participating countries are something to look forward to. China, Japan and South Korea will participate in all events. Cambodia and Saudi Arabia are making their debuts, competing in alpine skiing, snowboarding, speed skating, short track speed skating, figure skating and curling. Their participation will undoubtedly promote the development of winter sports worldwide and foster cultural exchange and integration among Asian civilizations.

Third, the enthusiasm for certain events has reached unprecedented levels. Curling has garnered the most entries, setting a new record for the Asian Winter Games. The number of participating countries has increased from six during the previous games to 16 in 2025. As a newly introduced event, ski mountaineering has already received registration from 10 countries and regions, which will promote the popularity and development of this sport. The event for alpine skiing has seen the most enthusiastic response, with 25 countries signing up, including many tropical countries from South Asia, Southeast Asia and even West Asia, like Nepal, Bhutan, India, Singapore, Malaysia, Thailand, the United Arab Emirates and Kuwait. This demonstrates the rapid development in recent years of winter sports in Asia, especially since the Beijing Winter Olympics.

Based on the registration for the competition, we have reason to believe that the 9th Asian Winter Games Harbin 2025 will further expand the reach and influence of winter sports in Asia, transforming "cold ice and snow" into Asia's "hot sports." Thank you.

Hongxing News:

Transportation services are not only the cornerstone for a successful sporting event but also a crucial factor in enhancing the experience for both athletes and spectators. What measures have Harbin implemented to better serve athletes and spectators? Thank you.

Wang Hesheng:

For this Asian Winter Games, there are two competition areas: one in Harbin and the other in Yabuli. As the Games coincide with the peak winter tourism season, transportation services will be an arduous task. We insist on systematic planning and careful organization, and strive to enhance the overall transportation carrying capacity, convenience and comfort.

In terms of aviation, Harbin Taiping International Airport is the official entry and exit port for this Asian Winter Games. Currently, 12 Asian routes, including flights to Japan, South Korea and China's Hong Kong, are already in operation. A second runway will be operational in January next year, increasing the number of aircraft stands from the current 91 to 181 and allowing for over 60 flights to take off and land per hour. Additionally, Beijing Capital International Airport, Beijing Daxing International Airport and Shanghai Pudong International Airport have been designated as official entry and exit ports. Other domestic ports will also offer dedicated convenience services for the Harbin Asian Winter Games.

In terms of railways, the infrastructure renovation projects involving Yabuli West Railway Station and Yabuli South Railway Station and the electrification of the Weihe-Yabuli South Railway have all been completed. During the Asian Winter Games, Yabuli South Railway Station will launch three special lines, allowing direct train services from Beijing to Yabuli; Yabuli West Railway Station will increase high-speed train services to 40 trips, running every 30 minutes on average, from the current six trips per day. Yabuli Railway Station has added six passenger trains to Beijing, Kunshan and other destinations. "Point-to-point" high-speed train services have been launched, connecting the Harbin downtown city directly to Yabuli. The carriages have been modified to include ski storage areas, providing great convenience for skiing enthusiasts.

In terms of highways, dedicated service channels for the Asian Winter Games have been set up at Harbin Railway Station, Harbin West Railway Station and Harbin Taiping International Airport. There are 46 shuttle bus routes from the airport and train stations as well as 36 local shuttle bus routes for the Games. A new Yabuli West Tourism Passenger Station has been built and the Yaxue Highway has undergone a complete upgrade. The section from Yabuli to the ski resort has been upgraded to a two-way, four-lane first-class highway, ensuring smooth connections between air, rail and road transportation. Whether it's railways, highways or airport upgrades, these improvements not only meet the demands of the Asian Winter Games but also provide great convenience for both future urban development and skiing enthusiasts.

In terms of transportation within the city, Metro Line 3 will be fully operational by the end of this November, providing access to competition venues, hotels and major attractions. During the event, 972 additional new energy vehicles, including methanol-powered vehicles, will be provided. Temporary bus services between venues will be introduced, and the operating hours of the metro and buses will be extended. Dedicated lanes for the Asian Winter Games will be scientifically planned to minimize the impact on daily travel for the public and ensure transportation needs during the event.

Thank you.

The New Times:

Anti-doping work plays an important role in ensuring fairness and justice in major sporting events. Could you please introduce the specific anti-doping efforts at this Harbin Asian Winter Games? And what specific measures will be taken next? Thank you.

Zhou Jinqiang:

Thank you for your questions. Anti-doping work is an important component of international large-scale multi-sport events. The anti-doping efforts for this Asian Winter Games are managed by the Olympic Council of Asia (OCA), which has authorized the International Testing Agency (ITA) to oversee the anti-doping testing, including the development of testing plans, therapeutic use exemption reviews, result management and information sharing. Additionally, the OCA has designated the China Anti-Doping Agency (CHINADA) as the sample collection agency and the Beijing Anti-Doping Laboratory as the testing agency.

In terms of doping tests, the Asian Winter Games will strictly implement the anti-doping rules and related regulations of the OCA to create a fair and clean competitive environment for athletes. During the Games, seven doping testing stations will be set up at competition venues and the athletes' villages. All athletes may be subjected to unannounced doping tests at any time and in any location. Additionally, 55 doping testing officials from China and abroad will be appointed for the Games.

In terms of anti-doping education, the Asian Winter Games will establish anti-doping education stations in the two competition zones of Harbin and Yabuli. These stations will host a variety of engaging and interesting anti-doping educational activities to raise awareness among athletes about anti-doping, enhance their understanding and abilities regarding anti-doping, promote the spirit of sportsmanship, and foster a culture of clean and fair competition during the event.

In terms of risk prevention for foodborne, medically sourced and drug-related doping, the 9th Asian Winter Games Harbin 2025 Organizing Committee is committed to implementing the strictest requirements. A comprehensive doping risk prevention system will be established from the source to ensure the safety of athletes in terms of food, medical care and medication. Thank you.

China Central Television (CCTV):

The province of Heilongjiang has abundant ice and snow resources. How do you plan to leverage the opportunity of the Asian Winter Games to further consolidate and expand the participation of 300 million people in winter sports, while also nurturing more reserve athletes for the country? Thank you.

Han Shengjian:

Thank you for your question. Heilongjiang leverages its advantage as a major province for ice and snow sports, vigorously developing both competitive and mass sporting events. For 46 consecutive years, it has organized activities to get millions of young people involved in ice and snow sports, continually consolidating and expanding the achievements of involving 300 million people in winter sports. At the 14th National Winter Games, Heilongjiang province won 66 gold, 58 silver and 52 bronze medals, maintaining its top position in both the gold medal and overall medal standings for 14 consecutive editions. The province has also nurtured a large number of young athletes for the country.

In terms of training and preparation, we are focusing on the Asian Winter Games and the Milan-Cortina Winter Olympics by adopting the model of "provincial teams managed by cities, and one city per specialty." We have established 11 composite training support teams to concentrate efforts on strengthening our advantageous sports. Recently, our province introduced incentive policies for outstanding athletes and coaches, fully supporting athletes in their dedicated training and preparation. We strive to achieve both excellent competition results and a spirit of sportsmanship, aiming to bring glory to the country and enhance the province's reputation.

In terms of building a reserve talent pool, the city of Qitaihe in our province has cultivated 13 Winter Olympic and world champions, earning 182 world-class gold medals and 569 national-level gold medals. We are currently summarizing and promoting the "Qitaihe Model," researching and formulating policies to deepen the integration of sports and education, and planning pilot projects for this integration across the province. We aim to establish a scientific system for talent cultivation, selection and recommendation, creating a larger "reservoir" of reserve talent. We are strengthening the construction of 48 national high-level sports talent reserve bases and adopting innovative training models, such as provincial teams managed by cities and schools. This will expand the pathways for cultivating reserve talent. Additionally, we are encouraging outstanding former athletes to enter schools as physical education teachers and coaches, thereby enhancing the faculty strength for talent development.

In terms of promoting public participation in winter sports, on the one hand, we will continue to enrich sports venues. This year, cross-country skiing tracks will be laid on the Songhua River. More than 3,000 public sports venues are expected to be built using natural rivers, small hillsides and urban parks. We will also encourage eligible venues to open to the public for free or at a low cost. On the other hand, we will constantly organize various sporting events for the public. More than 300 events such as ice marathons and urban skiing will be held to create a sound environment for the public to enjoy ice and snow. Thank you.

China Education Television (CETV):

As the 100-day countdown to the Asian Winter Games begins, there is growing public interest in the volunteer services. What is the composition of volunteers for the Asian Winter Games? How is the current volunteer testing and training going? Thank you.

Zhang Haihua:

Thank you for your questions. A total of 100,000 people worldwide registered to be volunteers in next year's Games and 6,000 volunteers were chosen after several tests. Regarding personnel composition, volunteers are college students mainly from Heilongjiang and 21 other provinces and regions, including Hong Kong and Macao. There are also 400 overseas students coming from 22 different countries. A quarter of these volunteers have previously taken part in other international sports gatherings, with many senior ones having participated in the Hangzhou Asian Games, the Beijing Winter Olympic Games and the Paris Summer Olympic Games. Nearly 500 volunteers have relevant skiing skills. Specialized volunteers will serve in 35 sectors such as medical and health care, information services and media services.

With a focus on practical application, we have developed 50 courses, such as competition services and etiquette guidelines for award ceremonies, as well as over 100 various training sessions covering general knowledge and specialty skills. During the recently concluded Heads of Delegation Conference, the 2024 National Men's Ice Hockey Championship and the National U18 Women's Ice Hockey Championship, all participating volunteers provided professional and thoughtful services and showcased the vigorous image of Chinese youth, earning praise from the Olympic Council of Asia, foreign delegations and all sectors of society.

In 12 future test events, we will carry out comprehensive training and testing during the entire process to improve volunteers' practical capabilities. In July, a voluntary service campaign themed "Dream of Winter, Together We Volunteer" was initiated in Harbin, providing 280 kinds of services including traffic facilitation, scenic spot introductions and convenience services in urban areas such as traffic stations, tourist attractions, and cultural venues. Over 20,000 volunteers have already been recruited in the city.

"Welcome Asian Winter Games with Passion, Warm the World with Ice and Snow." When the Games kick off, it will also be the time for the Harbin International Ice and Snow Festival to welcome visitors from all over the world. At that time, every resident in Harbin will become a volunteer. Here, we sincerely invite all media friends to make an appointment with the Games and Harbin. Welcomed by our sincere, warm and thoughtful services, you will experience the speed and charm of winter sports as well as feel the temperature, warmth and gentleness of our city.

Hong Kong Commercial Daily:

The Asian Winter Games, an intercontinental winter sports gathering, will attract a number of domestic and foreign journalists. What preparations have been made for its media operation? Thank you.

Zhang Haihua:

Thank you for your question. The media plays a vital role in promoting the Olympic spirit, China's sporting spirit as well as the Asian Winter Games. We will make great efforts to provide an excellent working environment, facilities and services for all registered media outlets to facilitate their work. We will mainly focus on the following three aspects.

First, a network of media centers will be carefully planned for journalists. We will set up a main media center and a Yabuli Mountain media center, respectively, in the ice and snow competition areas and will establish several functional zones including comprehensive service spots, dedicated media workspaces, a press conference hall, special (rental) spaces as well as a catering and tea break room. We will also establish additional media centers in the opening and closing ceremony venues, five competition arenas and two athletes' villages. By doing so, we aim to create an optimal environment for journalists to conduct their work.

Second, we have set up a special comprehensive information release platform. We developed an "Online News Center" system for the 9th Asian Winter Games, established a professional and efficient news and information service team to provide competition review, competition highlights and flash quotes in both Chinese and English for registered media. This ensures that registered media can obtain objective, comprehensive and accurate official news and information as soon as possible.

In addition, we will provide high-quality and convenient service guarantees. Overseas registered journalists, with their identity registration cards and their valid IDs used in the application, can enter and leave the Chinese mainland between 12 a.m. Beijing time on Jan. 1 and midnight on March 1, 2025, without needing to submit an additional visa application each time. Eight media hotels near the sports venues have been chosen to provide media shuttle bus services between the media hotels and the main media center, as well as between the main media center and the venues, with considerate arrangements for arrivals and departures, logistics, catering, charge cards, finance and other aspects.

We will do our best to provide high-quality, professional and friendly services for friends from the media in guaranteeing access to space, information and services. We sincerely welcome media friends from across the globe to follow and participate in the Asian Winter Games, help present the unique charm of winter sports, jointly carry forward the Olympic spirit and China's sporting spirit, and present the Asian Winter Games to the world in comprehensive, multi-dimensional and vivid ways.

Finally, I would like to once again wholeheartedly invite friends from the media to visit Harbin to enjoy its beautiful scenery, experience the charm of the "Ice City," and jointly tell Harbin's story.

Thank you.

The Beijing News:

In recent years, frugality has been advocated in hosting sporting competitions. How can Harbin guarantee the smooth progress of all events while ensuring frugality to the maximum extent? Thank you.

Wang Hesheng:

Thank you for your question. The 9th Asian Winter Games will continue to center on the sporting events. Considering the long-term use after the Games, the high-quality facilities and resources, while meeting the needs of the event, will be used afterwards by the public and tourists.

In terms of venue construction, there will be no large-scale demolition. Instead, existing venues and facilities will be renovated and upgraded in aspects such as cold air and heat supply, dehumidification, lighting and internet access to meet the needs of the events. Regarding the snow events, we have made necessary upgrades based on existing skiing courses, and only revamped and expanded two special-purpose venues, namely the freeski big air and ski slopestyle venues. By the end of September, all the sports venues and reception hotels have been renovated and passed the final inspection. Existing equipment and facilities in the venues can be fully utilized, and the current ice resurfacers, snowmobiles, protective nets, medical rescue facilities and other equipment in the Yabuli snow competition zone will all be put into use. The venue for the opening and closing ceremonies can not only be used for economic and trade exhibitions, but also function as a space for events such as national fitness, sporting events and commercial performances. After the 9th Asian Winter Games, all the venues will open to the public with higher standards, better environment and improved functions, playing a greater role in professional training, sporting events and mass sports development, consolidating and expanding the achievement of having 300 million people participating in winter sports and meeting the needs of urban development and citizens.

In terms of the development of informatization, we will mainly focus on the needs of the Games, and prioritize technical fields that meet the demands of diversified application scenarios, to guarantee services for fast data transmission, high-definition live broadcasting, immersive spectator experience and security.

In terms of the torch relay, we have optimized the route, streamlined the scale, shortened the duration and reduced the number of torchbearers, which will not only lessen the impact on citizens, but also fully demonstrate Harbin's natural scenery, cultural characteristics and the city's charms. This time, both banks of the Songhua River will be important relay routes, which will not only showcase the magnificent natural beauty there, but also minimize the impact on public travel.

Regarding the opening and closing ceremonies, we will control the performance duration and cast sizes, promoting the Olympic spirit through creativity and innovation. We will prepare the ceremonies with care rather than extravagance, making them streamlined but not simplistic, economical yet spectacular. Thank you.

Tide News under Zhejiang Daily Press Group:

As you just said, during the ninth Asian Winter Games, a huge number of visitors will come to Harbin from home and abroad. Besides watching competitions, they may want to explore the city and its surroundings. Could you preview Harbin's attractions for them, including the warmly received visitor services and security measures that netizens have praised? Thank you.

Han Shengjian:

Thank you for your question. Heilongjiang province is rich in unique cultural and tourism resources. We are developing a distinctive cultural tourism industry, building the province into a model showing that both lucid waters and lush mountains, as well as ice and snow, are invaluable assets. From January to September this year, Heilongjiang saw a sustained boom in tourism, receiving 186 million tourist visits and generating 231.8 billion yuan in revenue, a year-on-year increase of 37% and 108%, respectively. From Nov. 8, 2024, to Feb. 28, 2025, the province will launch a new 100-day winter tourism initiative, targeting improvements in 10 areas, including dining, lodging, transportation, sightseeing, shopping, entertainment, visitor services, public facilities, supervision and security, and global promotion. We will also coordinate Asian Winter Games preparations with winter tourism services, promoting development across ice-and-snow sports, culture, equipment and tourism. Our goal is to establish the province as a world-class winter tourism destination and a leading ice-and-snow economic area.

To improve tourist services, Heilongjiang will develop eight themed routes featuring the Asian Winter Games, China's northernmost and easternmost points, border culture, revolutionary heritage, northeast New Year folklore, winter wellness, outdoor sports and educational travel. For visitors who may like both to watch games and visit tourist attractions around the venues, we will upgrade the Harbin-Yabuli-Xuexiang-Mudanjiang winter tourism circuit, connecting popular attractions, including Harbin Ice-Snow World theme park, the Chinese Baroque Historic and Cultural Block, Yabuli Ski Resort, Xuexiang village, Hengdaohezi town and Jingpo Lake.

This year, Harbin Ice-Snow World will expand to 1 million square meters from 810,000 square meters last season. The number of ice slides will increase from 16 to 24, creating a fantastic ice-and-snow theme park.

As for skiing, this year, the three separate ski fields at Yabuli Ski Resort will be united for the first time to serve ski lovers from home and abroad, so they can access 56 snow trails across all areas with a unified pass.

With the theme "A Date with Harbin, A Heartwarming Ice City," Harbin will hold signature tourism events, such as the Harbin International Ice and Snow Festival, the Ice Collecting Festival and the Yabuli Ski Festival, and develop 12 themed tourism routes, such as the "Dreamlike Ice City" tour. These initiatives aim to establish the city as an international tourism hub and a world-class ice-and-snow tourism destination.

Regarding improving public service facilities for tourists, we are accelerating the development of a transport system that enables both quick arrival and leisure travel. In terms of air transport, we have added international and regional routes reaching the Hong Kong Special Administrative Region, Southeast Asia and Northeast Asia. We have also launched an inter-provincial route connecting Harbin with China's northernmost city, Mohe, and easternmost city, Fuyuan. In terms of rail transport, we have increased the frequency of trains linking tourism hubs and improved the capacity of high-quality tourist trains like "Lindu" and "Yichun." In terms of road transport, we renovated and upgraded the road between Yabuli and Xuexiang, adding service stations, viewing platforms and public parking lots. We have also expanded shuttle services between scenic spots and customized routes to ensure consistent bus availability.

Furthermore, we have established local standards for tourist homestays in Heilongjiang, identified a selection of star-rated homestays and introduced unique options themed "snowy forest" and "border charm." We've also upgraded the Tour Heilongjiang with One Click mini-program and have launched a tourist guide map to enhance travel convenience and tourists' experiences.

To create an optimal tourism environment, we will implement ten initiatives to intensify supervision of the tourism market, with stricter oversight in key areas including traffic management, travel agencies and tour guides, and tourism-related shopping. We are also promoting the Integrity and Self-discipline Conventions for Ten Tourism-related Sectors in Heilongjiang, encouraging emerging tourism sectors like travel photography, study tours and car rentals to enhance self-discipline. At the same time, we are improving multilingual signage and guiding facilities at scenic spots, airports, train stations, hotels, shopping malls and other key locations. We've introduced convenient services for foreigners, including easy payment options and ticket booking in advance to facilitate their travel.

We extend a warm invitation to tourists and media friends from both home and abroad to visit Heilongjiang this winter to enjoy the stunning ice and snow and experience the excitement of the Asian Winter Games. Thank you.

Shou Xiaoli:

Please continue to raise questions. We have time for one last question.

China News Service:

Arrival and departure services are a key indicator of an event's organizational efficiency and overall service quality. What are the main features of the arrival and departure services for the upcoming 9th Asian Winter Games? How will you enhance services for the athletes and delegates? Thank you.

Zhang Haihua:

Arrival and departure services are crucial because they shape the first impression and lasting memories of athletes and delegates at the Asian Winter Games. The organizing committee places great emphasis on this aspect, aiming to provide convenient, efficient and attentive services for all groups involved. Our efforts are focused on the following key areas:

First, we've established an arrival and departure services command center led by provincial and municipal officials, with full support from civil aviation, railways, transportation, registration and other relevant departments. A dedicated service team has been set up and an arrival and departure information management system has been developed to provide strong technical support. We've also formulated special policies and facilitation measures for arrival and departure services. For example, a direct air route between Harbin and Hong Kong was launched on June 2, and more routes are being opened to make it easier for our guests to travel to Harbin.

Arrival and departure services for the Games will be provided from January 27 to February 17, 2025. During this period, based on the arrival and departure schedules of athletes and delegates, dedicated channels will be set up at Harbin Taiping International Airport and the key railway stations (Harbin Railway Station, Harbin West Railway Station and Yabuli West Station ). Specialized teams will assist with services such as entry assistance, identity accreditation and activation, process guidance, information consultations, transportation and advance baggage check-in. Necessary services will also be available at recommended entry and exit points in Beijing and Shanghai. For groups needing transportation between Harbin's downtown area and the Yabuli competition area, high-speed railway will provide reliable service. Arrival and departure service desks will be available at airports, railway stations, the Athletes' Village, the Technical Officials' Village, media hotels and the National and Regional Olympic Committee Service Center. These desks will assist with arrival and departure inquiries as well as help with completing or updating necessary documentation.

Next, we will accelerate preparations by conducting on-site practice at airports, railway stations and other key venues. We will also formulate and distribute to all relevant parties the Harbin Asian Winter Games Arrival and Departure Guide. Emergency drills will be held to address extreme weather conditions such as blizzards, low temperatures and freezing. We are committed to ensuring smooth arrival and departure services throughout the Games, with the goal of delivering an event that is streamlined, safe and spectacular. Thank you!

Shou Xiaoli:

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

Translated and edited by Liu Caiyi, Wang Ziteng, Zhou Jing, Huang Shan, Chen Xinyan, Ma Yujia, Zhang Junmian, Wang Wei, Wang Xingguang, Lin Liyao, Li Xiao, Li Huiru, Liu Jianing, Wang Qian, Zhang Tingting, Jay Birbeck, David Ball 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 Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT) 

Ms. Tao Qing, spokesperson of the MIIT and director general of the Operation Monitoring and Coordination Bureau of the MIIT

Chairperson:

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

Date:

Oct. 23, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT), and Ms. Tao Qing, spokesperson of the MIIT and director general of the Operation Monitoring and Coordination Bureau of the MIIT, to brief you on the development of industry and information technology in the first three quarters of 2024, and to answer your questions.

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

Zhao Zhiguo:

Hello, ladies and gentlemen. I would like to express my gratitude to you for your long-term interest in and support for industry and information technology. First, I'll brief you on its development in the first three quarters of 2024.

Since the beginning of this year, with the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, the MIIT has thoroughly implemented the guiding principles of the 20th CPC National Congress, as well as the second and third plenary sessions of the 20th CPC Central Committee, and the decisions and deployments of the CPC Central Committee and the State Council. Adhering to the general principle of pursuing progress while ensuring stability, the MIIT has promoted stable growth, advanced structural adjustment and guarded against risks through reform. Overall, the industrial and information-based economy remained stable in the first three quarters, with continuous improvement of the industrial structure and accelerated development of new quality productive forces. Innovations were achieved in key areas, and substantial progress was made in high-quality development. There have been five key highlights of this progress:

First, the industrial economy maintained stable growth. Industrial production remained steady, with a 5.8% year-on-year increase in the value added of industrial enterprises above designated size in the first three quarters, serving as "ballast" for macroeconomic growth with a contribution rate close to 40%. Of the industrial sectors in 31 provinces and equivalent administrative units, and 41 major industrial categories, over 90% experienced growth. Equipment manufacturing and high-tech manufacturing sectors saw rapid growth, with their value added accounting for a higher proportion of the total of the industrial enterprises above designated size compared to the entire previous year. Industrial investment maintained double-digit growth for eight consecutive months.

Second, the transformation and upgrading of the manufacturing industry was accelerated. Efforts to digitalize the manufacturing sector were boosted, cumulatively establishing 421 national-level smart manufacturing demonstration factories and over 10,000 provincial-level smart factories. A total of 13 Chinese enterprises were added to the Global Lighthouse Network, bringing the country's total number of "lighthouse factories" to 72, accounting for 42% of the global total. Solid progress was made in launching the first batch of pilot cities for the digital transformation of small- and medium-sized enterprises (SMEs), with nearly 10,000 SMEs undergoing digital upgrades. The industrial energy conservation and carbon reduction initiative was further implemented, significantly advancing the development of the clean, low-carbon hydrogen industry and the eco-friendly equipment manufacturing industry. The energy consumption per unit of value added for industrial enterprises above designated size continued to decline. 

Third, a host of significant innovations were secured. An 18 megawatt (MW) offshore wind turbine was connected to the grid, the first domestically built Mark III membrane large LNG ship completed its trial voyage, and the C919 large passenger aircraft is now operated by the country's three major airlines. A 1,000 (kilowatt) kW turboshaft engine received its type certificate from the Civil Aviation Administration of China, while a 300 MW F-class heavy-duty gas turbine was successfully ignited. Additionally, the Opinions on Innovative Development of Pilot-Scale Testing in Manufacturing Industry and the Guidelines for the Construction of New Material Pilot-Scale Testing Platforms (2024-2027) were issued. Approval was granted to establish two national-local joint manufacturing innovation centers for humanoid robots and embodied intelligent robots, and China's first national practice base for outstanding engineers was set up in Hangzhou. These outcomes have provided strong support for promoting the integration of technological and industrial innovation.

Fourth, business entities experienced steady growth. By the end of August, the number of industrial enterprises above designated size reached 504,000, an increase of 4.4% compared to the end of 2023. A total of 1,557 single-product specialists in the manufacturing industry, over 140,000 SMEs that use special and sophisticated technologies to produce novel and unique products, and 14,600 "little giant" companies (novel and elite SMEs that specialize in a niche market, boast cutting-edge technologies, and show great potential) were cultivated. Additionally, the number of high-tech enterprises within the validity period reached 463,000. In the first eight months, the operating profit margin of "little giant" industrial enterprises above designated size reached 7.5%, higher than the average level of industrial enterprises above designated size.

Fifth, information and communication technologies continued to empower. In the first three quarters, the total volume of telecommunication business increased by 10.7% year on year. Significant efforts were made to promote the coordinated development of new information infrastructure, including the internet, computing power and artificial intelligence (AI). By the end of September, a total of 4.089 million 5G base stations had been built, leading to a 5G user penetration rate of 69.6%. The number of gigabit broadband users reached 196 million, ensuring gigabit broadband connectivity in every county, 5G coverage in every township, and broadband access in every village. The integration and application of 5G technology has been further enhanced, with 5G applications integrated into 76 major categories of the national economy as well as the core aspects of key sectors such as industry and health care. There are now more than 15,000 "5G plus industrial internet" projects in place. 

At the same time, it is important to acknowledge that current shifts in the external environment have notably heightened risks and challenges. Some enterprises are facing difficulties in production and operation. However, the fundamentals sustaining China's economic growth remain unchanged. Our comprehensive industrial system, complete industrial chain support, and relatively low overall manufacturing costs continue to provide a competitive global edge. Positive factors driving growth and improvements are accumulating. In particular, the recent implementation of a raft of incremental policies will continue to stimulate industrial upgrading, unleash consumer potential and invigorate business entities. We are confident about achieving our annual goals and contributing to economic recovery and growth. That concludes my introduction. My colleagues and I are now happy to answer your questions. Thank you.

Shou Xiaoli:

The floor is now open for questions.

CCTV:

Statistics show that China's industrial production has demonstrated steady growth in the first three quarters of this year. How do you evaluate the development of the industrial economy in the first three quarters? What measures will be taken to ensure sustained industrial growth? Thank you.

Zhao Zhiguo:

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, we have taken the initiative and made concerted efforts with all regions and relevant departments to accelerate the pace of new industrialization and promote the smooth operation of the industrial economy in the first three quarters. Specifically, there are three main characteristics:

First, industrial production has maintained steady growth. We have actively promoted the implementation of policies that have been issued. In the first three quarters, the added value of industrial enterprises above designated size increased by 5.8% year on year, and the total industrial added value accounted for 31.8% of GDP. Second, key industries and regions have been key drivers of overall growth. We have thoroughly implemented the work plan for stabilizing growth in 10 key industries, and given full play to the key supporting role of major industrial provinces and cities. The four industries of electronics, nonferrous metals, chemicals and automobiles have contributed nearly half of the growth in industrial production. The growth rate of nine major industrial provinces exceeded the national average. Zhengzhou, Shaoxing, Wenzhou, Hefei and other major industrial cities achieved double-digit growth. Third, the momentum of development continues to accumulate. We have prioritized equipment renewal and technological transformation in the industrial field, and promoted the transformation of scientific and technological achievements into productive applications. Capital expenditure on equipment and tools has increased by 16.4% year on year. The output of artificial intelligence (AI) chips, servers and other products with high technical content and high added value has grown rapidly.

Next, we will strive to fully implement the decisions and arrangements of the Party Central Committee, with a priority on the key task of accelerating new industrialization. We will make greater efforts to stabilize growth, expand demand, increase growth momentum and improve the environment.

To stabilize the overall performance in industrial development, we will further promote the implementation of the work plan for stabilizing growth in 10 key industries. We will support major industrial provinces and cities to consolidate their advantages and take on their major responsibilities. At the same time, we will facilitate industrial transfer and development in northeastern, central and western provinces, enhance their ability to undertake industrial transfer and promote regional coordinated development.

To expand effective demand, we will promote the construction of major projects in the 14th Five-Year Plan (2021-2025) and accelerate their implementation. We will increase efforts to promote the consumption of smart home appliances, coordinate with various regions to accelerate the implementation of trade-in policies for cars and electric bicycles, continue to implement relevant activities, such as stimulating spending on new energy vehicles (NEVs) in rural areas, and fully stimulate the market potential.

To enhance development momentum, we will carry out major technological upgrading and large-scale equipment upgrading projects in the manufacturing industry and large-scale equipment renewal projects, and promote the digital transformation of the manufacturing industry. We will accelerate efforts to promote high-quality development of key industrial chains, major national sci-tech projects, and key national R&D plans to achieve more landmark results. We will study and formulate policies and measures to enhance the technological innovation capabilities of industries, and promote the deep integration of technological and industrial innovation. We will foster and strengthen the low-altitude economy, commercial aerospace, bio-manufacturing and other new industries and new arenas.

To optimize the development environment, we will continue to promote the reduction of enterprise costs and carry out a series of special actions to serve small- and medium-sized enterprises (SMEs). We will strengthen industry guidance, strengthen standard quality guidance, enhance industry self-discipline and actively prevent "involution-style" vicious competition. We will continue to improve the normalized communication and exchange mechanism for enterprises, coordinate and solve problems and appeals, and strengthen enterprises' confidence in development. Thank you.

Cover News:

How has China's automobile industry performed in the first three quarters of this year? How does the MIIT view the development of the country's automobile industry? And what measures have been taken to promote the high-quality development of the industry? Thank you.

Zhao Zhiguo:

Thank you. I will answer your questions. Under the strong leadership of the CPC Central Committee, and with all departments working closely together, the automobile industry has risen to challenges and took positive action. In the first three quarters, the country's automobile industry operated well overall. From a macro perspective, the automobile industry has maintained steady growth. In the first three quarters, the added value of the automobile industry increased by 7.9% year on year. Production and sales reached 21.47 million vehicles and 21.571 million vehicles, respectively, up 1.9% and 2.4% year on year, respectively. A total of 4.312 million vehicles were exported, up 27.3% year on year. From January to August, the operating income and total profit of the automobile industry increased by 3.2% and 3% year on year, respectively. The NEVs sector has shown robust growth. In the first three quarters, production and sales of NEVs reached 8.316 million vehicles and 8.32 million vehicles, respectively, up 31.7% and 32.5% year on year, respectively. In the past three months, the sales of new energy passenger vehicles accounted for more than 50%, achieving a new breakthrough, and 928,000 NEVs were exported, up 12.5% year on year.

However, it should also be noted that the automobile industry still faces challenges such as weak domestic demand and growing export uncertainties. Going forward, the MIIT will conscientiously implement the decisions and arrangements of the CPC Central Committee and the State Council, and work with relevant departments to increase policy support and promote high-quality development of the industry.

A wide range of steps will be taken to expand automobile consumption. This includes the effective implementation of policies such as trade-in programs as well as preferential vehicle purchase tax and vehicle and vessel tax incentives to boost consumption. We will continue to promote the initiative of stimulating spending on new energy vehicles in rural areas, launch a new batch of pilots for the complete electrification of vehicles in public sectors and develop guiding opinions on the battery swap model for new energy vehicles, all aimed at actively expanding automobile consumption.

The second measure is to optimize automobile production access management policies. Efforts will be made to promote the issuance of regulations on motor vehicle production access management, improve a dynamic management mechanism for "admission and exit" and pilot self-inspection for road motor vehicle product access to further stimulate the vitality of business entities. We will explore the implementation of corporate group management, support enterprises in improving quality and efficiency, enhancing their strength and competitiveness. Enterprises will be guided to focus on the long term, strengthening technological upgrades, product iterations and innovative models while also continuously enhancing core competitiveness and creating a favorable industrial ecosystem for development.

The third measure is to support the innovative development of technologies. Through channels such as initiatives for high-quality development as well as national key research and development programs, we will continue to advance key technological breakthroughs in areas such as power battery materials and automotive chips. In-depth pilots will be conducted for the access and on-road driving of intelligent connected vehicles as well as "vehicle-road-cloud integration" trials to prudently promote the industrialization of autonomous driving technologies.

The fourth measure is to better support the international development of enterprises. We will actively address trade barriers such as anti-subsidy investigations and high tariffs, providing more support and convenience in areas like investment and management for automotive enterprises going global. We will strengthen the connectivity of standards and the alignment of regulations in areas such as autonomous driving and carbon accounting to create a favorable environment for development. Thank you.

Phoenix TV:

Over the past year or two, we have noticed that China's low-altitude economy has been developing rapidly. Could you please share what measures and considerations the MIIT has taken to promote the development of the low-altitude industry? Thank you.

Zhao Zhiguo:

Thank you for your question. This question will be addressed by Mr. Tao.

Tao Qing:

Thank you for your question. Developing the low-altitude economy is a major strategic deployment made by the CPC Central Committee. Low-altitude equipment and industries are important material carriers for the low-altitude economy. The MIIT places great emphasis on the development of the low-altitude industry, currently focusing on four main aspects.

The first aspect is to strengthen top-level planning. This year, we have collaborated with relevant departments to issue the "Implementation Plan for Innovative Application of General Aviation Equipment (2024-2030)," and we are working together with relevant departments to research and support innovative ideas and measures for technology and equipment in the low-altitude industry.

The second aspect is to strengthen the multi-scenario applications as the spearhead. We, together with relevant departments, have carried out pilot projects on the innovative application for general aircrafts in many places across the country. For example, we held a low-altitude industry innovation and development conference in Shihezi, Xinjiang, to promote the establishment of an aviation transportation system with fully integrated network connecting trunk lines and branch lines, as well as between branch lines; we held an on-site meeting about the innovative application of general aviation equipment in Bei'an, Heilongjiang, to create a benchmark for large-scale and regular application models of agricultural spraying and forestry protection by drones. The goal is to reduce the average operating cost for plant-protection drones to less than 10 yuan per mu (0.0667 hectares).

The third aspect is to promote the integration and innovation of information technology and equipment development. Currently, China's major information and communication enterprises, as well as enterprises in power batteries and electric machines, are actively participating in the low-altitude economy, with innovation factors from various fields accelerating their convergence in the low-altitude industry. We have already carried out technological validations and application pilots for low-altitude communication and sensing network technologies based on 5G/5G-A.

The fourth aspect is to improve the system of industrial laws, regulations and standards. To enhance the quality of drone manufacturing, we have issued the " Several Provisions on the Administration of the Manufacture of Unmanned Civil Aircraft" and the "Interim Measures for the Radio Management of Civil Unmanned Aerial Vehicles." We have also compiled national standards, such as the "Safety requirements for civil unmanned aircraft system," and have established a product information system for civil unmanned aerial vehicles to continuously improve the record management of enterprises and products.

Next, we will focus on carrying out the following tasks: 

First, we will accelerate breakthroughs in key technologies. We will concentrate on core technologies for low-altitude equipment, safety technologies and operational technologies, systematically promoting breakthroughs for a batch of common key technologies as well as accelerating the innovation and iterative upgrades of general aviation technologies and equipment. Second, we will continuously strengthen scenario applications as the spearhead. We will continue to promote pilot programs in regions with advantages; tailor low-altitude, multi-scenario application demonstration systems to local conditions; accelerate the cultivation of new business forms in low-altitude logistics, urban and intercity air transport, as well as low-altitude cultural and tourism consumption; and expand new models such as agricultural and forestry plant protection, patrol inspections and emergency rescue. Third, we will deepen integrated innovative development. We will actively promote the integration and innovation of new generation information and communication technologies, new energy technologies and low-altitude equipment such as drones. We will conduct studies on the use of radio frequencies in the low-altitude economy, push forward the construction of low-altitude information infrastructure as needed and accelerate the development of low-altitude intelligent connectivity technologies and innovative models. Fourth, we will continuously strengthen support of laws, regulations and standards. We will continue to organize the publicity, implementation, and training of relevant laws and regulations, guide drone manufacturing enterprises in compliance management, promote the establishment of an industrial standard system that spans the entire lifecycle from R&D and design to manufacturing of low-altitude equipment and will encourage industry organizations, such as the Low-altitude Industry Alliance, to strengthen enterprise supply and demand matching, technical exchanges and standard coordination to jointly build a healthy industrial ecosystem. Thank you!

21st Century Business Herald:

Since the beginning of this year, the information and communications industry has maintained a steady and rapid growth trend. Could you share more details with us? What are the key plans to further accelerate the industry's development? Thank you.

Zhao Zhiguo:

I'll answer these questions. Thank you for your questions. Since the beginning of this year, China's information and communications industry has maintained steady growth, achieving new results in high-quality development.

First, emerging telecom businesses have maintained rapid growth. As of the end of September, the total telecom business volume increased by 10.7% year on year, with business revenues from internet and related service enterprises above a designated size reaching 1.17 trillion yuan from January to August. New areas such as internet data centers, big data and cloud computing have become important drivers for growth in the industry. Telecom emerging business revenues in the first three quarters reached 325.2 billion yuan, a year-on-year increase of 9.4%, continuing the rapid growth trend and providing fresh momentum for the industry. The orderly opening-up of value-added telecom services has also advanced. This morning, the MIIT, along with relevant departments, held a meeting and issued approval documents to Beijing, Shanghai, Hainan and Shenzhen, officially launching pilot programs to expand opening-up in value-added telecom services. We welcome foreign-invested companies to operate telecom businesses in the country.

Second, network infrastructure continues to improve. This year, we adhere to the principle of bolstering infrastructure construction with a moderately proactive approach, introducing policies to promote the 5G RedCap application and the coordinated development of new information infrastructure. A total of 4.089 million 5G base stations have been established, with 10G PON ports for gigabit network services reaching 27.32 million. Additionally, we have established international communications gateway exchanges in four cities: Nanning, Qingdao, Kunming and Haikou, which will further help improve national network services. We have also launched the "Signal Enhancement" initiative to improve signal quality and optimize user experience, accelerating 4G and 5G mobile network coverage in key scenarios like tourist attractions, medical institutions and campuses of higher education.

Third, the comprehensive strength of the industry has steadily improved. The international competitiveness of China's information and communications enterprises has increased significantly, with China Mobile, China Telecom and China Unicom ranking among the world's top 10 telecom operators by revenue. Twenty-four platform enterprises now exceed $10 billion in value, and eight listed companies are among the world's top 30 internet companies by market value. The communications equipment manufacturing industry has continued to thrive, with 220 million mobile phones shipped from January to September, a year-on-year increase of 9.9%. Key technologies are advancing rapidly, with over 15,000 applications and services now available on the HarmonyOS NEXT operating system.

Fourth, inclusive services for public well-being have greatly progressed. Through initiatives, like universal telecom services and the "Broadband in Border Areas" program, more rural and remote areas now have access to reliable network services. Broadband access is now available in all villages and there are over 300 million rural internet users. We are also addressing urgent and difficult issues affecting people's lives, with solid measures including the development of a public service platform for app testing and certification to regulate industry practices. To date, more than 200,000 digital classes for senior citizens have been held, offering training on smart device usage, online payments and anti-fraud knowledge to the elderly and enabling more people to benefit from the digital economy.

Moving forward, the MIIT will continue to promote the coordinated advancement of network construction, application and research, enhancing the information and communications industry to boost China's strength in manufacturing, cyberspace and digital development. The key efforts include: First, advancing network infrastructure upgrades. We will improve policies for dual-gigabit networks (5G and gigabit fiber networks), advance pilot deployment of 10G optical networks and continue to implement the "Broadband in Border Areas" and "Signal Enhancement" initiatives. Second, accelerating research and development of core technologies. We will promote progress and product research and development in 5G-A and non-terrestrial networks (NTN) as well as proactive innovation in 6G, artificial intelligence, quantum information and related fields. Third, deepening integration with the real economy. We will improve policies for 5G scaled applications and high-quality development of the industrial internet, with a focus on creating high-level 5G factories and piloting the integrated application of "5G + industrial internet". Fourth, balancing development and security. We will fully implement data security capability enhancement plans and risk assessments and continuously improve the security of information infrastructure. Lastly, expanding high-level opening-up of the telecom industry. We will encourage foreign enterprises to operate internet data center (IDC) and internet service provider (ISP) businesses in pilot areas. We will provide sound management and services for relevant enterprises and protect their legitimate rights and interests in accordance with the law. Efforts in this aspect will help elevate the openness of China's telecom industry to a new stage. Thank you.

Xinhua Finance:

As the digital economy experiences rapid growth, society's production and daily life increasingly rely on the support of the ICT industry. Could you please provide an overview of the application of next-generation information technology and the practical initiatives planned for the future? Thank you.

Tao Qing:

Thank you for your question. Since the beginning of this year, we have accelerated the application of next-generation information technology. We've focused on integrating the cutting-edge technology into industries such as manufacturing, mining, power and healthcare to empower economic and social development.

First, the transformation of the manufacturing sector has reached new depths. Focusing on the integration of smart upgrades, digital transformation and internet connectivity, we have promoted the development of the industrial internet in conjunction with key industrial chains. We have successively released a series of guidelines for integrated applications across key industries, including iron and steel, electronic information and construction machinery, establishing 40 typical scenarios spanning 15 domains, such as product design, planning and scheduling and quality control. Currently, 5G applications have been implemented across 76 categories of the national economy, indirectly driving approximately 14 trillion yuan in total output.

Second, information consumption has become more vibrant, with increasingly diverse scenarios. We are accelerating the digital and smarter development of consumer goods. On the one hand, we have solicited case studies aimed at increasing product variety, improving quality, and building brands in the fields of smart homes, textiles and garments, and specialty foods. On the other hand, we've cultivated new models and scenarios, such as flexible manufacturing and digital marketing, based on consumer data. The supply of information products has witnessed a substantial increase, with smart devices like AI-powered mobile phones and smart home technologies rapidly meeting user demands. Data from August shows that the output of service robots rose by 20.1% year on year.

Third, the public goods have become smarter. The application of technologies such as AI and 5G has scaled up significantly, resulting in 135 exemplary cases of new digital services across transportation, culture and tourism, elderly care, health care, and emergency response. For instance, in healthcare, nearly 1,000 pilot projects for "5G plus medical and healthcare" provide online smart diagnosis and AI-assisted diagnostics, reducing misdiagnosis and missed diagnoses while improving diagnostic accuracy. In the culture and tourism sectors, technologies like cloud computing, big data, and geographic information systems have witnessed broader applications during this year's National Day holiday, with new scenarios emerging, such as smart navigation, smart parking, and all-weather emergency services, fully satisfying visitors' personalized needs. 

Looking ahead, we are determined to seize the significant opportunity presented by the integrated application and innovation of next-generation information technology, focusing on the following four aspects. 

First, we will strengthen the industrial development by continuously promoting the R&D, innovation and industrialization of key technologies such as integrated circuits, industrial software, AI and satellite internet, while also cultivating and developing emerging and future-oriented industries. 

Second, we will accelerate the cultivation of ecosystem-driven industrial enterprises, and refine the full-cycle cultivation system for selecting, nurturing and optimizing innovative SMEs that utilize specialized and sophisticated technologies to produce unique products. We will also establish a unified national system, with coordination between provincial governments and ministries, for nurturing unicorn enterprises and creating a group of digital enterprises boasting strong capabilities, great vitality, remarkable potential, and robust competitiveness.  

Third, we will enhance the application of information technology to advance the progress of the new industrialization. We will roll out guidelines for the high-quality development of the Industrial Internet, fully implement initiatives to digitalize the manufacturing sector, and promote reference guidelines for smart manufacturing. 

Fourth, we will reinforce the industrial ecosystem by establishing a robust system to facilitates the profound integration of the real economy and the digital economy. We will undertake collaborative efforts to achieve breakthroughs across the industrial chain, and focus on cultivating a group of enterprises with competitive advantages and effective production solutions. Thank you.

Nanfang Daily, Nanfang Plus: 

This year, what progress has China made in green industrial development and energy-saving and carbon-reducing technologies? What are the next major tasks? Thank you.

Tao Qing:

Thank you for your question. Green and low-carbon development is the defining ecological feature of new industrialization. We firmly uphold and practice the concept that lucid waters and lush mountains are invaluable assets. This year, we have ramped up policy support and jointly issued guiding opinions on accelerating the green development of the manufacturing industry with relevant departments. These efforts have enhanced the progressive cultivation of green factories and promoted the application of energy-saving and carbon-reducing technologies and equipment in the industrial and information sectors. We have also focused on developing green productivity and creating a competitive advantage in green industrial development. Thanks to the combined efforts of all parties, remarkable progress has been registered in green and low-carbon industrial development, as well as in energy conservation and carbon reduction. This year alone, we've established 50 national green data centers, and the average utilization rate of renewable energy has exceeded 50%. Resource utilization efficiency continues to improve, with the comprehensive utilization of industrial solid waste reaching approximately 1.7 billion tons in the first three quarters. The reuse rate of water in enterprises above designated size is expected to exceed 94%. The momentum for green development is accelerating, with the output value of national green factories now accounting for over 18% of the total output value of the manufacturing sector. This year, the output value of eco-friendly equipment manufacturing is projected to approach 1 trillion yuan, and from January to September, new orders for green ships have clinched an impressive 75.9% of the global market share.

Going forward, we will focus on improving the mechanisms for green and low-carbon development. We will issue an action plan for the green and low-carbon development of the manufacturing industry to support a comprehensive green transition in all areas of economic and social development.

First, we will accelerate the formulation of carbon footprint accounting standards for industrial products. Focusing on key products such as steel, electrolytic aluminum, lithium batteries and new energy vehicles, we will swiftly develop a series of carbon footprint accounting standards to help industrial enterprises reduce carbon emissions throughout product lifecycles and promote the transformation and upgrading of industrial and supply chains.

Second, we will strengthen the comprehensive utilization system for waste materials from emerging technologies. Regarding used power batteries, we will formulate and implement comprehensive utilization management measures, revise and publish industry standards for comprehensive utilization, and accelerate the development of a new recycling system. For used photovoltaic modules and similar items, we will enhance policy research and preparation for comprehensive utilization, proactively build utilization capacity, and prepare for the upcoming peak of decommissioning.

Third, we will actively promote the application of clean, low-carbon hydrogen in industrial sectors. Focusing on addressing bottlenecks in implementation, we will further advance integrated policy innovations and accelerate large-scale applications in the metallurgy, chemical, and petrochemical industries, while achieving breakthroughs across multiple scenarios, including industrial green microgrids, green shipping and green aviation. Thank you.

Zhonghongwang.com:

New information infrastructure, represented by 5G and gigabit optical cable networks, has become a key driver of high-quality economic and social development. Could you please update us on the current progress in this area? What are your next steps? Thank you.

Zhao Zhiguo:

Thank you for your question. I will answer it. Under the unified guidance of the CPC Central Committee and the State Council, our ministry has made solid progress in developing new information infrastructure and achieving comprehensive advancement in networks, computing power and new technology infrastructure. We have built the world's largest and most technologically advanced foundational network. Nationwide, we've established 207 "gigabit cities," ensuring gigabit connectivity reaches every county. We've also expanded 5G coverage to over 90% of administrative villages, comprehensively supporting agricultural development and rural prosperity. Mobile Internet of Things (IoT) terminal users now account for 59.2% of total users, and "things" outnumber "people" in network connections. Our computing power infrastructure ranks among the top globally in both scale and capacity. China's total computing power has reached 246 EFLOPS, with latency speeds of 20 milliseconds between national hubs, effectively supporting computing resource allocation and data flow. We have improved China's computing power platforms and public service platforms for interconnected computing power, along with enhanced monitoring for computing power network quality and operational safety. Emerging technologies, including AI, blockchain and quantum information, are flourishing. Nearly 200 registered generative AI models are now providing public services, with registered users exceeding 600 million.

Next, our ministry will work with relevant departments to deeply implement the strategic arrangements of the third plenary session of the 20th CPC Central Committee. These arrangements include improving institutions and mechanisms for modernizing infrastructure to promote the coordinated development of new information infrastructure.

First, we will develop comprehensive plans for backbone network infrastructure. This includes strengthening the planning of interprovincial trunk optical cable networks, formulating medium- and long-term plans for international communication facilities, accelerating the expansion of international submarine and terrestrial cables, and coordinating the planning and construction of cross-border infrastructure such as international terrestrial cables, international railways, and international oil and gas pipelines. We will also develop regional information hubs in border provinces.

Second, we will optimize the layout of computing power infrastructure. We will continue implementing the action plan for the high-quality development of computing infrastructure. Our focus includes coordinating the distribution of computing resources, guiding the orderly construction of computing facilities, strengthening the supply of intelligent computing power, and improving utilization efficiency. We will also continue advancing the interconnection of computing systems and build a unified national market for computing services.

Third, we will deepen coordinated and inclusive regional development. We will support eastern regions in taking the lead to explore new models for implementing technologies such as 5G-Advanced and AI. We will guide central, western and northeastern regions in accelerating the development of gigabit cities and encourage western regions to strategically locate major computing facilities in areas with significant cost advantages. We will also advance universal telecommunications and broadband services in border areas to enhance network coverage in rural and remote regions.

Fourth, we will promote the integrated development of information infrastructure and traditional infrastructure. This includes coordinating the construction of the Internet of Vehicles (IoV) roadside facilities along highways and urban trunk roads. We will also explore the establishment of integrated sensing and communication network facilities for the low-altitude economy, efficiently arrange urban sensing terminals, and jointly construct city-level IoT sensing terminal management and data analysis platforms. We will also comprehensively build a three-dimensional real-world model of China and establish a digital China spatiotemporal foundation and data integration platform. Thank you.

China Electronics:

We have recently noticed a significant increase in consumer spending on digital products, driven by the consumer goods trade-in policy. Could you provide an update on the current state of China's consumer electronics industry and your expectations for the industry's development this year? Thank you.

Zhao Zhiguo:

Thank you for your question. The electronic information manufacturing industry is characterized by large scale, rapid technological updates and having strong influence on the industrial chain. It is one of the most important industries that stabilize the growth of the industrial economy. This year, China's consumer electronics industry has performed well, primarily reflected in rapid production growth. From January to September, the added value of electronic information manufacturing industry above designated size increased by 12.8% year on year, 7 percentage points higher than the industrial growth in the same period. About 249 million microcomputers, 1.184 billion mobile phones and 150 million color TVs were produced, with year-on-year growth rates registered at 2.9%, 9.8% and 2.5%, respectively. Exports continued to rebound. According to customs statistics, in the first nine months, China exported 580 million mobile phones, 110 million laptop computers and 81.29 million TVs, a year-on-year increase of 3.5%, 0.7% and 8% respectively. Domestic brands have achieved growth in shipments in most markets around the world, with brand influence continuing to increase. The domestic market continues to recover and improve. By the end of September this year, China's smartphone shipments reached 206 million units. There is a strong demand for large-screen TVs ranging from 75 to 100 inches in the domestic market. With the support of trade-in policies, TV sales have increased significantly from the end of August to mid-October. Benefiting from technological upgrades, increasingly rich functions and user experience optimization, shipments of China's smart wearable devices have also maintained a steady growth.

From the perspective of development trends, as new technologies and new products continue to develop and be used, more users will be able to enjoy high-quality, advanced products. These include terminal products equipped with large-scale AI models, mobile phones with tri-fold screen, Mini-LED TVs and laser TVs.

Next, we will combine consumer goods trade-in policies as well as implement relevant policy documents such as the Guidelines on Accelerating the High-Quality Development of the Audio-Visual Electronics Industry and the Smart Health and Elderly Care Industry Development Action Plan (2021-2025), so as to accelerate the release of domestic market demand, actively explore international markets and continue to strengthen and expand China's consumer electronics industry. At the same time, we will continue to support the R&D and innovation of outstanding domestic consumer electronics companies, guide upstream and downstream enterprises in the industrial chain in enhancing their support capabilities for emerging hot technologies and continuously improve product supply levels. Thank you.

Economic Daily:

Deepening industry-finance cooperation is an important measure to boost the real economy through financial services. Could you introduce more details about the progress and results of China's industry-finance cooperation? What are the next steps? Thank you.

Tao Qing:

Thank you for your questions. All relevant departments and financial institutions adhere to the fundamental purpose of serving the real economy with financial services, innovatively and carry out integrated cooperation between industry and finance. We will prioritize financing support for the implementation of major national strategies, security capacity building in key areas, large-scale equipment renewals, and trade-ins of consumer goods. We will also implement technological innovation and technological transformation re-loans, optimize policies for loan renewals without principal repayment and strongly support the improvement of industrial modernization.

First, the national industry-finance cooperation platform has helped enterprises raise more than one trillion yuan. The platform offers customized, intelligent financial services and has established 24 special zones, such as areas for industrial transfer and advanced manufacturing clusters. It brings together 345,800 high-quality enterprises, 2,965 financial institutions and 741 financial products, contributing approximately 1.0018 trillion yuan in business financing. Since the beginning of this year, an additional 290 billion yuan has been raised, marking a year-on-year growth rate of 40.7%. Second, the special project of "Integration of Science, Technology, Industry, and Finance" promotes the transformation and industrialization of scientific and technological achievements. We have joined with more than 150 leading financial institutions in establishing a promotion and alignment platform for 260 projects in fields such as new generation information technology, equipment manufacturing, aerospace information, artificial intelligence and biomedicine. The amount of equity financing has exceeded 10 billion yuan and nearly 20% of the enterprises' valuation has doubled, indicating that they are actively preparing for initial public offerings (IPOs). Third, we work together with financial institutions to support new industrialization. The financial institutions that cooperate with us cover various types such as banks, insurance companies and funds. In response to the financing needs of manufacturing enterprises, we have innovatively launched a number of special financial products. These include special loans for enterprises that use specialized and sophisticated technologies to produce novel and unique products, conversion loans for scientific and technological achievements, loans for industrial digital transformation as well as a variety of financial combination models such as "pilot insurance + R&D loan." We have established 17 regional equity markets with specialized boards for enterprises that use specialized and sophisticated technologies to produce novel and unique products. We have conducted the "one chain, one policy, one batch" initiative to promote financing for micro, small, and medium-sized enterprises (MSME) as well as have expanded the coverage of inclusive finance. At the same time, we organized the "one month, one industrial chain" investment and financing promotion campaign for small and medium-sized enterprises (SMEs) that use specialized and sophisticated technologies to produce novel and unique products. This has facilitated the intentional financing of more than 100 billion yuan.

Next, we will continue deepening the cooperation between industry and finance. First, we will expedite the formulation and issuance of policy documents supporting new industrialization through finance. Focusing on key directions and fields of new industrialization, we will increase support through technological finance, digital finance, cross-border finance and policy-based financing. This will guide more financial resources toward promoting technological innovation, advanced manufacturing, green development and micro, small, and medium-sized enterprises (MSMEs). We will promote the innovative application of digital technology in the financial field and increase digital empowerment. Second, we will actively leverage the connecting and consolidating effects of the national industry-finance cooperation platform. We will strengthen cross-departmental enterprise information sharing mechanisms, optimize platform functionality and continuously expand the platform's capacity to provide public services to enterprises. Third, we will thoroughly implement the "Integration of Science, Technology, Industry, and Finance" initiative. We will fully utilize the "green channel" mechanism for sci-tech companies' IPOs, mergers and acquisitions, and bond issuances, guiding social capital to provide sustainable, multi-channel funding for key sectors and critical areas. Working with relevant departments, we will expedite the establishment of the third batch of specialized boards for enterprises that use specialized and sophisticated technologies to produce novel and unique products in regional equity markets. We will also optimize the nationwide "one month, one industrial chain" financing promotion campaign to help small and medium-sized enterprises (SMEs) achieve more precise industry-finance alignment. Thank you.

Shou Xiaoli:

One last question, please.

CNR:

We know that the market application of scientific and technological advances is an important bridge connecting production and scientific research. In terms of accelerating the application of scientific and technological outcomes, what are the considerations and measures of the MIIT for the next stage? Thank you.

Zhao Zhiguo:

Thank you for your question. General Secretary Xi Jinping has repeatedly emphasized the need to promote integrated advancements in technological and industrial innovation, and to promptly apply the advances of scientific and technological innovation to specific industries and industrial chains. The MIIT has taken pragmatic steps to vigorously develop the science and technology service industry and quicken the industrialization of scientific achievements. Currently, China has cultivated over 16,000 incubation institutions serving more than 700,000 startups and teams. More than 5,000 companies graduating from these incubators have achieved public listings, with one-third of companies listed on the Science and Technology Innovation Board (STIB) being incubator graduates. We've established 420 national technology transfer demonstration institutions and 12 regional centers, accelerating technology transfer and transformation. Technology transactions remain robust, with nationwide technology contract transactions reaching 4.49 trillion yuan in the first three quarters of this year, up 17.8% year on year. Moving forward, we'll focus on four key aspects:

First, we'll improve the top-level design of the science and technology service sector. This includes expediting releasing guidelines for developing the sector, establishing a technical committee for industry standardization, developing guidance for standardization systems, and promoting innovation development clusters in the sci-tech service sector.

Second, we will improve the enterprise incubation system. We're shifting focus from quantity to quality in both incubation facilities and technology transfer markets. We'll issue updated management measures for the accreditation of hi-tech enterprise incubators, promote tiered incubator development, and support excellent incubators in emerging and future industries, accelerating the cultivation of key and core technology enterprises.

Third, we will develop an integrated technology market. We will implement reform initiatives from the third plenary session of the 20th CPC Central Committee by establishing a unified national technology transfer service platform and accelerating the development of a unified technology trading market. We will revise both the management measures for technology contract registration and the rules for technology contract verification and registration, while strengthening standardized management of technology contract certification. Additionally, we will cultivate a cohort of highly qualified technology managers to serve as effective "technology matchmakers," facilitating the transformation of scientific achievements from research to commercialization and turning samples into products.

Fourth, we will move faster to promote the application of scientific and technological advances. We will select advanced and practical technologies, promoting their implementation across traditional industries and SMEs. Working with relevant departments, we will develop guidelines for "pay-after-use" arrangements for scientific and technological outcomes, encouraging universities and research institutions to license their technological innovations to enterprises. We will implement demonstration projects for industrial applications of scientific advances, creating demonstration scenarios within state-owned enterprises to promote the industrialization of technological breakthroughs. Thank you.

Shou Xiaoli:

Thanks to all the speakers and our friends from the media. That's all for today's briefing. Goodbye, everyone!

Translated and edited by Xu Xiaoxuan, Yang Xi, Yang Chuanli, Xiang Bin, Wang Yanfang, Zhang Jiaqi, Yan Xiaoqin, Yan Bin, Wang Yiming, Li Huiru, Zhang Junmian, Fan Junmei, 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 Hongyan, deputy administrator of the State Administration of Foreign Exchange (SAFE)

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

Chairperson:

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

Date:

Oct. 22, 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 Hongyan, deputy administrator of the State Administration of Foreign Exchange (SAFE), to brief you on foreign exchangereceipts and payments data for the first three quarters of 2024 and answer your questions. Also with us today is Mr. Jia Ning, director general of the Balance of Payments Department of SAFE.

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

Li Hongyan:

Good morning, everyone. Despite today's poor weather, thank you all for attending this press conference. I'll begin by briefing you on China's forex receipts and payments for the first three quarters of 2024, then take your questions.

Since 2024, the global economic and financial situation has been complex and volatile, with rising geopolitical risks. China has adhered to the general principle of pursuing progress while ensuring stability, intensified macro regulation, and maintained overall stability with steady progress in the national economy. Cross-border capital flows have trended toward balance, and the forex market has demonstrated strong resilience. Market expectations and transactions have remained generally rational and orderly. The yuan exchange rate has maintained basic stability at a reasonable, balanced level.

From the perspective of cross-border receipts and payments by non-banking sectors, in the first three quarters of 2024, cross-border receipts and payments by non-banking sectors amounted to $5.2594 trillion and $5.2566 trillion, respectively, resulting in a $2.8 billion surplus when valued in U.S. dollars. When valued in yuan, cross-border receipts by non-banking sectors totaled 37.39 trillion yuan, and payments 37.37 trillion yuan, yielding a surplus of 18.7 billion yuan. In terms of data on foreign exchange settlement and sales by banks, let me explain that settlement refers to the selling of foreign exchange to banks by enterprises, individuals, and other entities, while sales refer to the buying of foreign exchange from banks by these entities. In dollar terms, the first three quarters saw forex settlements of $1.6762 trillion and sales of $1.7975 trillion, resulting in a $121.3 billion deficit. In yuan terms, settlements reached 11.91 trillion yuan and sales totaled 12.78 trillion yuan, producing an 864.6 billion yuan deficit.

In the first three quarters of 2024, China's forex receipts and payments showed the following main characteristics:

First, cross-border capital flows returned to net inflows. Overall, cross-border receipts and payments by non-banking sectors showed a slight surplus in the first three quarters, with a modest surplus in the first quarter, shifting to a deficit in the second quarter, and returning to surplus in the third quarter. In terms of main components, goods trade maintained net inflows, foreign investment into China gradually improved, and outbound investment by domestic entities remained orderly.

Second, forex settlement and sales by banks moved toward basic balance. In the first three quarters, overall forex settlement and sales by banks showed a deficit, primarily due to an expanded deficit in the second quarter. However, it returned to equilibrium in the third quarter, with a surplus emerging in September, characterized by increased settlements and stable sales.

Third, the forex settlement rate has risen steadily while the sales rate has shown a moderate decline, with enterprises maintaining rational behavior in foreign exchange settlements and sales. In the first three quarters, the settlement rate for forex receipts, which measures settlement willingness, was 62.1%, while the sales rate for forex payments, which measures purchase willingness, was 68.9%. From August to September, the settlement rate reached 66.4%, up 5.7 percentage points from the first seven months, while the sales rate was 66.7%, down 2.8 percentage points from the same period. Domestic entities maintained stable exchange rate expectations, and forex transactions remained rational and orderly.

Fourth, forex transactions remained relatively active. In the first three quarters, total transaction volume in the domestic yuan forex market reached $30.27 trillion, up 10.1% year on year. Of this, spot and derivatives transactions amounted to $10.18 trillion and $20.09 trillion, respectively, with derivatives accounting for 66.4% of the market. This proportion increased by 3.7 percentage points compared to the same period of 2023.

Let me mention that in August this year, SAFE published the guidelines on exchange rate risk management for enterprises on its official website. We've brought copies of these guidelines here today for media representatives to take. The guidelines include new market practices and corporate case studies, as well as examples of accounting applications for corporate hedging. We hope you can help us promote these guidelines.

Fifth, foreign exchange reserves have remained stable. Since the beginning of the year, non-dollar currencies have experienced both depreciation and appreciation against the U.S. dollar. Given the rise in global asset prices, and as a result of non-transaction factors such as exchange rate translation and asset valuation effects, China's foreign exchange reserves have steadily increased. At the end of September, the balance of foreign exchange reserves stood at $3.3164 trillion, an increase of $78.4 billion from the end of 2023. 

Going forward, SAFE will thoroughly implement the guiding principles from the third plenary session of the 20th CPC Central Committee as well as the arrangements and requirements made at the meeting of the Political Bureau of the CPC Central Committee held on Sept. 26. We will pay more attention to system integration, prioritize key areas and put our focus toward solid reform results. We'll unwaveringly follow the path of financial development with Chinese characteristics, and make solid and effective efforts to promote reforms and prevent risks in the foreign exchange market. By doing so, we seek to step up support for the real economy and promote sustained economic recovery and growth.

The aforementioned is major statistics with China's foreign exchange receipts and payments in the first three quarters of 2024. We're now open to your questions regarding China's foreign exchange receipts and payments. 

Thank you.

Xing Huina:

Now the floor is open for questions. Please identify the news outlet you work for before asking your question.

Yicai:

Since the beginning of this year, overseas investors have continued to increase their net holdings of Chinese bonds. In addition, the recent domestic stock market rise has also attracted more foreign investment into domestic equities. What is SAFE's outlook toward future foreign capital allocation into renminbi assets? Thank you.

Li Hongyan:

Thank you for your question. China has continuously and steadily opened up its financial market, and foreign investment in China has always attracted attention. I'd like to share some updates on the current situation. Recently, foreign investment in RMB assets has witnessed a positive trajectory. The comprehensive yield of RMB bonds has remained robust this year, encouraging foreign investors to increase their holdings on RMB bonds. The total holdings of onshore RMB bonds by foreign investors have surpassed $640 billion so far, marking a historic high. In terms of the existing investment structure, central banks and commercial banks from abroad, known for their stable investment style, are the primary investors and their investment portfolio is weighted towards medium and long-term bonds, such as treasury bonds and bonds issued by policy-oriented banks, which contributes to a higher level of investment stability. Moreover, driven by the rise in domestic equities, foreign investors have been increasing their net purchases of domestic stocks since late September. This indicates foreign investors' enhanced appetite for RMB-dominated assets. At present, foreign investments in domestic capital markets are still in a nascent stage, with holdings of RMB assets accounting for 3% to 4% of the domestic stock and bond markets. There is room for further increase given a multitude of favorable factors.

First, the fundamentals of China's economy are stable and improving, which provides a favorable macro-environment. Since the beginning of this year, China has been promoting its high-quality economic development in an orderly manner. As a number of incremental policies take effect one after another, China's economy will continue to consolidate this long-term positive trend. 

Second, China's improved high-level opening-up has provided a favorable policy environment. In recent years, China has steadily opened its financial market to global investors, providing a diverse range of investment channels for foreign investors. Programs such as the Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, the Bond Connect program and the China Interbank Bond Market (CIBM) have provided diversified investment channels for foreign investors. The third plenary session of the 20th CPC Central Committee made important arrangements with promoting high-level opening-up in the financial sector. As relevant policies continue to take effect, the domestic capital market is expected to be more attractive to foreign investors. 

Third, renminbi assets can effectively achieve risk diversification through diversified asset allocation measures, offering sound value of investment. China has established a comparatively complete and in-depth financial market system. The size of the country's bond and stock markets rank second worldwide. The renminbi maintains a stable value, boasts a variety of asset categories and demonstrates relatively independent yield performance on a global scale. This is conducive for global investors to diversify their asset allocation and achieve risk diversification. In the meantime, the share of renminbi used in global cross-border transactions continues to rise steadily and renminbi's international influence is gradually strengthening, making it a vital option for global investors seeking diversified asset allocation.

Overall, holdings of renminbi assets by foreign capital help to diversify the participants in the domestic market, enhance market liquidity and promote a more active and international development of the domestic capital market. SAFE will continue to enhance investment facilitation, foster a favorable investment environment, promote high-quality financial opening-up and proactively support foreign investors' participation in the domestic capital market. Thank you.

21st Century Business Herald:

China's external debt witnessed an overall increase in the first half of 2024. How does SAFE view this change with external debt? Thank you.

Li Hongyan:

Thank you. Mr. Jia will take this question.

Jia Ning:

Thank you for your question. The external debt of a country is an issue of great interest in both theory and practice. Based on the way debt is formed, China's external debt can be categorized into two types. The first type is external debt that is acquired by enterprises and banks through financing activities overseas. This is an objective consequence of fully utilizing domestic and international markets and resources, and is directly related to the development of cross-border trade and investment. The second type refers to the external debt accumulated through foreign capital's purchase of domestic bonds, which reflects global investors' demand for allocating renminbi assets. In recent years, as the renminbi becomes increasingly attractive to foreign investors, the second type of external debt has become the primary channel for the growth of the country's external debt.

In the first half of the year, China's external debt increased steadily. As of the end of June, the country's outstanding external debt totaled $2.54 trillion, an increase of $97.1 billion compared to the end of 2023, up 4%. For starters, China's economy has maintained steady growth and the comprehensive yield rate of renminbi bonds has also risen. Thus, foreign capitals have been steadily allocating renminbi bonds, with the net increase in holdings hitting a record high in the first half of the year and driving an increase of bond-related external debt of nearly $90 billion. This has been the primary driver for the increase in external debt. In addition, as expectations for a Federal Reserve interest rate cut rise, domestic enterprises and banks have shown a slower pace with repaying external debts. Financing-related external debt, such as deposits, loans and trade credit, has started to rebound, increasing by over $8 billion in the first half of the year. Based on preliminary statistics, the scale of external debt in the third quarter remains stable overall.

China's external debt generally is moderate in scale and relatively low-risk in terms of repayment. First, the scale of external debt is basically compatible with the country's actual economic growth. In recent years, despite the sharp U-turn in the Fed's monetary policy and shifts in external financial conditions, China's external debt has remained generally stable, with the external debt-to-GDP ratio fluctuating mildly between 14-16%. Enterprises' cross-border financing has also effectively supported the growth of the real economy. Second, the risk of external debt repayment remains controllable. Four indicators – the liability ratio, the debt servicing ratio, the debt ratio, and the ratio of short-term external debt to foreign exchange reserves – are all within the internationally recognized thresholds. Third, the structure of China's external debt continues to improve. As of the end of June 2024, the proportion of renminbi external debt and middle- and long-term external debt were 49% and 44%, respectively, representing an increase of 13 and 3 percentage points compared with 2019. The risks associated with external debt maturity mismatch and currency mismatch both remain controllable and have significantly decreased.

Looking ahead, China's external debt is expected to maintain steady development. As the country's economy rebounds and its financial market opens up steadily, the role of renminbi in asset allocation will continue to grow and foreign capital's investment in renminbi bonds will keep rising. At the same time, as China's foreign trade and investment potential continues to be released, and the cost of external financing decreases due to the interest rate cut of the U.S., European countries and other developed economies, enterprises and other sectors' demand for external borrowing is expected to rebound gradually.

That concludes my response. Thank you.

Market News International: 

What impact will the gradual narrowing of the China-U.S. interest rate differential (IRD) have on China's cross-border capital flows and exchange rates? Is SAFE concerned that the volatility of the yuan against U.S. dollar may cause foreign exchange losses for export enterprises? Thank you.

Li Hongyan:

The adjustment of monetary policies in major economies is a widely watched issue. We are continuously strengthening our tracking and monitoring efforts. In September this year, the Federal Reserve announced a 50-basis-point rate cut, signaling a shift from its two-year tightening policy and resulting in an adjustment to the China-U.S. interest rate differential. Looking ahead, uncertainties persist regarding the pace and trajectory of the Fed's rate cuts, with market expectations closely tracking changes in U.S. economic data. Historically, adjustments in the Fed's monetary policy have created spillover effects on global financial markets. While China's foreign exchange market has been affected, it has maintained overall stability, primarily due to support from domestic fundamentals. As China continues to pursue high-quality development and further economic opening-up, market resilience will strengthen, providing an even more solid foundation for foreign exchange market stability.

First, the continued recovery and improvement of China's economy helps strengthen the internal foundation for stability in the domestic foreign exchange market. Since the beginning of this year, the economy has maintained overall stability. Recently released GDP data for the first three quarters showed 4.8% year-on-year growth, positioning China at a relatively high level globally. China has strengthened countercyclical adjustments through macroeconomic policies, introducing a package of incremental measures to further drive economic recovery, boost market expectations and confidence, enhance economic vitality, and promote stable development in cross-border trade and investment. These measures provide a solid foundation for exchange market stability.

Second, the development of new institutions for a higher-standard open economy enhances the stability of the international balance of payments and the foreign exchange market. China's innovation-driven development strategy and comprehensive industry chain advantages will continue to play key roles. This will support stable foreign trade development, maintain the current account within a reasonable and balanced range, and strengthen internal-external economic equilibrium. Moreover, China's high-level institutional opening-up advances steadily, expanding cross-border investment channels, facilitating transactions, and promoting coordinated development of inbound and outbound investments. These measures will foster more balanced cross-border capital flows. Overall, maintaining balanced and stable international balance of payments helps preserve the yuan's stability at an adaptive and balanced level.

Third, the steady enhancement of China's foreign exchange market resilience helps adapt to and mitigate external environmental impacts. At the macro level, recent years have seen continuous improvement in the yuan's market-based exchange rate mechanism. The exchange rate's function as an automatic stabilizer for international balance of payments has strengthened, better releasing external pressures in a timely manner. At the micro level, businesses are utilizing forex derivatives more effectively to manage exchange rate risks and increasing cross-border yuan settlements to reduce currency mismatch risks. Since the beginning of this year, the forex hedging ratio of enterprises has reached 27%, while cross-border yuan usage in trade in goods has hit 30% – both at historically high levels. These positive macro and micro developments have alleviated the impact of forex market fluctuations on businesses, promoting more rational market expectations and transactions.

Regarding your concerns about the yuan exchange rate's impact on Chinese export enterprises, both theory and practice show that a country's exports are influenced by multiple factors, including external demand, domestic manufacturing capabilities and factor costs, with exchange rates being just one factor. Looking at China's situation, foreign trade has continued to improve this year. On the supply side, this improvement primarily stems from the enhanced competitiveness of domestic enterprises, while on the demand side, it relates to relatively stable global trade conditions. From a longer-term perspective, the main drivers of China's export growth have remained largely consistent.

From the perspective of exchange rate changes, this year the spot exchange rate of RMB against the US dollar has depreciated slightly by about 0.3 percent, and the RMB exchange rate has remained basically stable amid two-way fluctuations. Even the RMB exchange rate against the US dollar rebounding significantly in August and September was a general reaction of various non-dollar currencies to the weakening of the dollar. Moreover, the appreciation rate of the RMB is also at an average level globally, with its impact on imports and exports being relatively moderate.

SAFE has always paid close attention to changes within the situation. There are still some uncertain and unstable factors in the external environment. SAFE will monitor and evaluate international economic and financial situations as well as monetary policy trends of major developed economies. We will continue to accumulate and summarize response experiences, enrich the policy toolbox, and carry out countercyclical macro-prudential adjustments in a timely manner to effectively maintain the stable operation of the foreign exchange market. Thank you.

CCTV:

How have China's foreign exchange market and the international balance of payments performed so far this year? What characteristics do you think they have demonstrated? Thank you.

Li Hongyan:

Thank you for your questions. Regarding the current foreign exchange situation, I would like to share more information with you. As I mentioned earlier, the external environment has been complex and volatile so far this year. Monetary policy expectations of major developed economies have been repeatedly adjusted. The international financial market has continued to fluctuate. China's economic growth has shown a stable growth trend. The country's foreign exchange market has generally withstood the test of changes in the external environment and has shown stronger resilience, keeping a good momentum of steady growth. This can be observed from the following three aspects:

First, the RMB exchange rate remains basically stable amid two-way fluctuations. The RMB exchange rate is mainly determined by the market. Under the market-oriented formation mechanism, it is normal for the RMB to rise and fall in two-way volatility. I just mentioned that since the beginning of this year, the spot exchange rate of RMB against the US dollar has depreciated slightly by 0.3 percent, with a certain degree of decline and rise in some periods, but this is in line with changes in the internal and external environments. At the same time, compared with other currencies, the performance of the RMB in the global foreign exchange market is relatively stable. So far this year, the US dollar index has risen by 2.3%, the exchange rates of the euro and the Japanese yen against the US dollar have depreciated by 1.7% and 5.9%, respectively, and the emerging market currency index has fallen by 6.3%. It is thus clear that RMB fluctuations are normal and moderate.

Second, foreign exchange market expectations and transactions have remained rational and orderly. Relevant indicators in the foreign exchange forward and options markets show that there have not been any obvious expectations of appreciation or depreciation for the RMB exchange rate this year, and market transactions have been generally rational and orderly. As you all have seen, the RMB exchange rate has seen spikes and falls recently, with increased flexibility. Enterprises and other entities have seized the opportune timing to settle and sell foreign exchange based on cross-border trade, investment and financing needs. The total scale of foreign exchange settlement and sales in September increased by 14% compared with that in August. At the same time, in recent years, enterprises' awareness of exchange rate risk neutrality has been continuously enhanced, and the contract size of forward exchange settlements in August and September increased month by month, indicating that enterprises actively adapt to market fluctuations through exchange rate risk management.

Third, a basic equilibrium has been maintained in the balance of international payments. It demonstrated a surplus in the current account within a reasonable size. In the first half of this year, the surplus in the current account was $93.7 billion, accounting for 1.1% of the gross domestic product (GDP) in the same period, which was within a reasonable and balanced range. With this, trade in goods maintained a certain size of surplus and continued to play a fundamental role in stabilizing cross-border capital flows, and the deficit in trade in services basically returned to pre-epidemic levels. Preliminary statistics show that the current account surplus in the third quarter remained at a reasonable level. In the capital account, cross-border capital flows have recently become more balanced. Foreign investment in China has increased and foreign investment in domestic bonds has continued to rise steadily, with a cumulative net increase of more than $80 billion in the first three quarters. Recently, foreign investment in domestic stocks has also improved significantly, and holdings in foreign debt have remained stable. Outward investment by domestic entities has been carried out in an orderly manner and both direct investments and security investments have maintained a steady growth trend. Overall, the maturity and inherent resilience of China's foreign exchange market have both continued to increase, and its ability to adapt to changes in the external environment has also increased significantly, providing strong support for the overall stability of the foreign exchange receipts and payments this year.

That is all from me. Thank you.

Bloomberg News:

I have two questions. The first is that the U.S. Department of Treasury has raised some doubts about the balance of payments and statements by SAFE, including on the calculation of the trade deficit, and they have asked SAFE to provide more information about how you're calculating the goods trade deficit as compared to the customs administration, including in recent meetings and high-level meetings. Will you provide more information on how this is calculated for the U.S. Treasury and the public? My second question is, recently, there's been a rebound in the stock market due to expectations about stimulus. Do you have any information on how this is affecting capital inflows of foreign investors? And what is your outlook for cross-border capital flows through the end of this year? Thank you.

Jia Ning: 

Thank you for your attention to the balance of payments statistics. The discrepancies between goods trade figures in the balance of payments and customs import-export data aren't unique to China – they're common worldwide. These differences primarily arise from the different international standards followed by balance of payments and customs statistics, which highlights the importance of understanding their respective statistical methodologies. While the balance of payments focuses on the economic ownership of goods between residents and non-residents – essentially documenting transactions between domestic and foreign companies, customs statistics are solely concerned with the physical movement of goods across China's borders, regardless of ownership changes. Let me illustrate this with a common example from processing trade: When a foreign company provides all raw materials and contracts a domestic company for processing and assembly, with the finished products remaining foreign-owned, these transactions aren't included in the balance of payments since no ownership transfer occurs. However, customs records the full value of these goods as imports and exports since they physically cross the border.

It's important to recognize that as a major global trading and consuming nation, China has diverse trading patterns and a complex trade structure. The separation between goods transactions and their physical cross-border movement is increasingly common in international trade, naturally leading to more noticeable differences between these two sets of data. In a globalized economy, foreign multinationals may contract production in China, and the products may be sold directly in the domestic market. Since these goods do not cross borders, the transaction is not reflected from customs statistics. However, when these goods are sold domestically, the ownership transfers from the foreign company to a domestic entity, requiring their inclusion in the balance of payments import statistics. Additionally, the valuation principles differ between the two data sets. Balance of payments statistics measure the value of goods themselves, excluding transport and insurance costs. In contrast, customs statistics record exports at free on board (FOB) prices and imports at cost, insurance and freight (CIF) prices. 

These detailed explanations can be found in our newly released “China's Balance of Payments Report for the First Half of 2024” and previous reports. To achieve more comprehensive and accurate statistics on the goods trade in the balance of payments, since 2022, SAFE has been using data directly reported by enterprises, aligning more closely with the principles of goods trading. Balance of payments statements worldwide are compiled according to the uniform standards set by the International Monetary Fund. During this year's Article IV Consultation for China, the IMF fully endorsed China's new compilation methodology, recognizing that it addresses the practical challenges faced by China and better adheres to balance of payments statistical principles. Recently, at a special session of the China-U.S. financial working group, SAFE also had thorough and effective discussions with the U.S. Treasury on statistical issues. Looking ahead, SAFE will continue to monitor developments in China's foreign trade, refine our statistical methods, and provide higher-quality balance of payments data to the public.

As for the second question you asked, Mrs. Li responded previously. In general, China's balance of payments has solid economic foundation with sound market conditions. Since this year, the current account has developed steadily with two-way trade increasing and surplus continuing to be reasonable and balanced. From the perspective of the capital account, recent foreign direct investment has improved, and foreign purchases of bonds and stocks under portfolio investments have been sound. Therefore, we are confident and have good reason to believe that in the future months and even further China's cross-border investment capital will remain to have a trend that is steady and sound. Thank you for your concern. 

Cover News:

How do you evaluate the balance of payments in the current account? What is your judgement on future trends of the current account? Thank you. 

Jia Ning:

Thank you for your concern about China's current account. The current account is an important indicator showing whether a country balances its internal and external economies well. Since this year, China's current account has kept a reasonable surplus, indicating that the balanced pattern of internal and external economies has been further consolidated. Just now, Mrs. Li introduced China's current account surplus as a share of GDP and the main components of the current account in the first half of this year. In recent years, China has given full play to relative advantages in industrial and supply chains, increased competitiveness in foreign trade and has boosted productive service industries' exports. At the same time, relying on consumption potential of a large domestic market, global trade partners fully enjoy China's development opportunities, as well as advance balanced development of China's imports and exports. Looking ahead, China's current account will continue the development trend of expanding scale and basic balance, which will help maintain the balance of payments and the sound operation of the foreign exchange market. 

First, China's imports and exports in goods is expected to grow steadily, with the surplus of trade staying relatively stable. In terms of exports, on one hand, the global economy has seen moderate recovery and foreign demand still drives exports. According to predictions by the World Trade Organization, the growth rate of global trade next year will be 3%, up 0.3 percentage point compared to this year. At the same time, the replenishment cycle in developed economies is not yet complete, and the digital consumption market is expected to remain moderate, which supports China's exports. On the other hand, endogenous dynamics of export development is still strong. China has a comprehensive industrial system, which has been deeply integrated into global supply chains and value chains over the years. China's traded goods have become more diverse, with improved structure and diverse trade partners. In terms of imports, the performance of China's domestic economy sustains a recovery trend, further unleashing consumption vitality while increasing needs for international goods. At the same time, China in recent years has carried out a series of policies and measures to further expand imports, opening the door for the world to get access to China's market and further increasing the volume of imports. In general, under the combined effect of favorable internal and external factors, the total volume of China's foreign trade of goods will continue to remain at the forefront of the world, and the trade balance will develop in a more balanced direction.

Second, the structure of service trade balance is gradually improving, and the trade balance is expected to improve. In recent years, China has been promoting both industrial transformation and upgrading, fostering the deep integration of the service industry with the manufacturing sector. High-end services such as the digital economy and intellectual property rights have both seen acceleration in their development, leading to steady growth in service trade exports. In the first three quarters of 2024, the cross-border revenue from telecommunication, computer and information services, as well as business services, totaled $123.6 billion, representing a year-on-year increase of 6.8%. Revenue from intellectual property usage fees reached $9.1 billion, up 5.5% year on year. Another major component of service trade is travel, where outbound tourism and studying abroad have both seen steady recovery, nearly returning to pre-pandemic levels. Future growth rates are expected to be moderate. Moreover, since the beginning of this year, China has continued to optimize services for foreign personnel coming to China, expanding visa facilitation, which has contributed to rapid growth in revenue with cross-border travel. This trend is likely to continue and help narrow trade deficits with travel in the future. 

Thank you. 

Xing Huina:

Let's continue with the questions. I see another journalist has her hand raised.

National Business Daily:

In recent years, the two-way fluctuation flexibility of the RMB has increased. SAFE has been promoting enterprises to adopt the concept of exchange rate risk neutrality. What other suggestions do you have for enterprises to manage exchange rate risks? Thank you.

Li Hongyan: 

Thank you for your question. In recent years, the media has helped the foreign exchange management department to raise public awareness about enterprise exchange rate risk management through their effective reporting. First of all, I would like to thank you all for your support in foreign exchange management. SAFE has always prioritized, supported and facilitated the exchange rate risk management of enterprises, undertaking various initiatives. On one hand, the conditions in the forex market for serving enterprises in exchange rate risk management are continuously improving. At present, a mature international foreign exchange derivatives system, including forwards, swaps and options, has taken shape. More than 120 large, small, medium-sized, domestic and foreign banks now offer foreign exchange derivatives services, with market coverage nationwide. Also, the trading currencies of these banks encompass the main currencies used in cross-border settlements by enterprises, with fully functional trading, clearing and other infrastructure. On the other hand, we have continued to guide enterprises to establish the concept of exchange rate risk neutrality and encouraged banks to strengthen foreign exchange services for enterprises, especially micro, small and medium-sized enterprises. Through these efforts, the exchange rate risk management of enterprises has steadily improved in recent years. In the first three quarters of this year, the volume of foreign exchange derivatives used by companies to manage exchange rate risk exceeded $1.1 trillion, with over 32,000 enterprises engaging in currency hedging for the first time. All these figures are at historically high levels.

In an open economy with market-driven exchange rates, enterprises need to prioritize exchange rate risk management. The use of forex derivatives is an important approach to mitigating these risks. We have also learned in our day-to-day research that some enterprises still have concerns over the costs and effectiveness of these derivatives. I'd like to share some thoughts with you, including with enterprises. Foreign exchange derivatives follow a standard market pricing mechanism used globally. For example, the price of forward contracts fluctuates based on the spot price of foreign exchange and the interest rate differential between domestic and foreign currencies. In addition, purchasing foreign exchange options is similar to buying insurance, which requires the payment of insurance premium. It is both necessary and cost-effective for enterprises to incur some costs for hedging. The essence of hedging is to transform the uncertainty of future exchange rate fluctuations into certainty, thereby reducing their impact on business operations. Market practice also shows that enterprises should reasonably utilize various tools such as forex derivatives for hedging according to their own foreign exchange exposure, so as to correctly evaluate the effect. In particular, they cannot simply evaluate whether the hedging resulted in a loss or gain by comparing the locked-in forward exchange rate with the spot exchange rate at maturity.

Managing exchange rate risk for enterprises is a key task for SAFE. We will continue to strengthen market training, encourage financial institutions to optimize their services, join hands with various parties to lower foreign exchange hedging costs, deepen the development of the forex market, and improve foreign exchange financial infrastructure services, thus supporting enterprises in managing their forex risks.

This August, we released an updated version of the book "Guidelines on Enterprise Exchange Rate Risk Management" on our official website. The edition includes new sections on market practices and case studies from various enterprises. It also introduces applications of hedge accounting, addressing concerns many enterprises have. We hope this book can better provide targeted help for enterprises. Additionally, we appreciate continued support from the media in promoting it. Thank you.

Xing Huina:

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

Translated and edited by Wang Ziteng, Wang Wei, Gong Yingchun, Zhou Jing, Zhu Bochen, Huang Shan, Chen Xinyan, Yuan Fang, Ma Yujia, Zhang Junmian, Liao Jiaxin, Li Huiru, Liu Jianing, Wang Qian, Zhang Tingting, Liu Qiang, Jay Birbeck, David Ball and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speaker:

Mr. Sheng Laiyun, deputy commissioner of the National Bureau of Statistics (NBS)

Chairperson:

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

Date:

Oct. 18, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we have invited Mr. Sheng Laiyun, deputy commissioner of the National Bureau of Statistics (NBS), to brief you on China's national economic performance in the first three quarters of 2024 as well as to take your questions.

I'll now give the floor to Mr. Sheng for his briefing.

Sheng Laiyun:

Ladies and gentlemen, good morning. I am delighted to be here once again to prove an update on China's economic performance.

As usual, I will brief you on the first three quarters of 2024’s economic performance and then answer your questions.

In the first three quarters, the national economy was generally stable, with steady growth and positive factors promoting the recovery of economy were accumulated.

In the first three quarters, in face of a complicated and severe external environment and new situations, new problems of domestic economic development and 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 plans made by the CPC Central Committee and the State Council, adhered to the general principle of pursuing progress while ensuring stability, strengthened macro regulations, deepened reform and opening-up, expanded domestic demand, optimized economic structure, effectively implemented existing policies and accelerated the introduction of incremental policies. As a result, the national economy was generally stable with steady progress, featuring steady increases with production and demand, generally stable employment and pricing, effectively promoted people’s well-being, steady growth of new quality productive forces and solid progress with high-quality development. In September, most of the indicators of production and demand improved, market expectations were boosted and positive factors promoting the economy’s recovery were accumulated.

According to preliminary estimates, the gross domestic product (GDP) in the first three quarters of 2024 reached 94,974.6 billion yuan, up by 4.8% year on year at constant price. By industry, the value added of the primary industry was 5,773.3 billion yuan, up by 3.4% year on year; that of the secondary industry was 36,136.2 billion yuan, up by 5.4%; and that of the tertiary industry was 53,065.1 billion yuan, up by 4.7%. By quarter, the GDP grew by 5.3% year on year in the first quarter, 4.7% in the second quarter and 4.6% in the third quarter. The GDP for the third quarter increased by 0.9% quarter on quarter.

First, agricultural production witnessed good momentum and animal husbandry was generally stable. 

In the first three quarters, the value added of agriculture (crop farming) went up by 3.7% year on year. The total output of summer grain and early rice was 177.95 million tons, 3.46 million tons more than that of last year, an increase of 2.0%. The autumn harvest went smoothly and another bumper harvest is to be expected for the year. In the first three quarters, the output of pork, beef, mutton and poultry was 70.44 million tons, up by 1.0% year on year. Of this total, the output of beef and poultry grew by 4.6% and 6.4%, respectively, while that of pork and mutton dropped by 1.4% and 2.2%, respectively. The output of milk dropped by 0.1% and that of eggs went up by 3.5%. At the end of the third quarter, the number of pigs registered in stock was 426.94 million, down by 3.5% year on year. In the first three quarters, 520.30 million pigs were slaughtered, down by 3.2%.

Second, industrial production registered stable growth and equipment manufacturing and high-tech manufacturing grew fast. 

In the first three quarters, the total value added of industrial enterprises above the designated size grew by 5.8% year on year. In terms of sectors, the value added of mining increased by 2.9% year on year, that of manufacturing increased by 6.0%, and that of electricity, thermal power, gas and water’s production and supply increased by 6.3%. The value added of equipment manufacturing grew by 7.5% year on year while that of high-tech manufacturing was up by 9.1%, making their growth rates faster than that of all industries above designated size by 1.7 and 3.3 percentage points, respectively. An analysis by types of ownership showed that the value added of state holding enterprises was up by 4.3% year on year; that of share-holding enterprises was up by 6.1%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 3.9%; and that of private enterprises was up by 5.5%. In terms of products, the production of new energy vehicles, integrated circuits and 3D printing devices went up by 33.8%, 26.0% and 25.4% year on year. In September, the total value added of industrial enterprises above the designated size went up by 5.4% year on year, 0.9 percentage point faster than that of the previous month, or up by 0.59% month on month. In September, the Manufacturing Purchasing Managers' Index stood at 49.8%, 0.7 percentage point higher than that of the previous month. The Production and Operation Expectation Index was 52.0%. In the first eight months, the total profits made by industrial enterprises above the designated size were 4,652.7 billion yuan, up by 0.5% year on year.

Third, the service sector continued to recover and modern services enjoyed sound development.

In the first three quarters, the value added of services went up by 4.7% year on year. Specifically, the value added of information transmission, software and information technology services, leasing and business services, transport, storage and postal services, accommodation and catering, and wholesale and retail grew by 11.3%, 10.1%, 6.8%, 6.3% and 5.4%, respectively. In September, the Index of Services Production increased by 5.1% year on year, 0.5 percentage point faster than that of the previous month. Among them, the Index of Services Production of information transmission, software and information technology services, leasing and business services, and financial intermediation went up by 11.4%, 9.7% and 6.5%, respectively. In the first eight months, the business revenue of service enterprises above the designated size grew by 7.7% year on year. In September, the Business Activity Index for Services stood at 49.9%. The Business Activity Expectation Index for Services was 54.6%. Among which, the Business Activity Index for industries like postal services, telecommunication, broadcast, television and satellite transmission services, internet software and information technology services as well as monetary and financial services were within the high expansion range of 55.0% and above.

Fourth, market sales kept growing and sales of upgraded goods witnessed good momentum.

In the first three quarters, the total retail sales of consumer goods reached 35,356.4 billion yuan, up by 3.3% year on year. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 30,586.9 billion yuan, up by 3.2% year on year, and that in rural areas stood at 4,769.5 billion yuan, up by 4.4%. Grouped by consumption patterns, the retail sales of goods were 31,414.9 billion yuan, up by 3.0%, while the income of catering was 3,941.5 billion yuan, up by 6.2%. Certain basic living goods and upgraded goods enjoyed favorable sales. Retail sales for grain, oil and food as well as of beverages by enterprises above the designated size went up by 9.9% and 4.5%, respectively, and that of communication equipment and of sports and recreational articles grew by 11.9% and 9.7%, respectively. Online retail sales reached 10,893.0 billion yuan, up by 8.6% year on year. Specifically, the online retail sales of physical goods were 9,072.1 billion yuan, up by 7.9%, accounting for 25.7% of the total retail sales of consumer goods. In September, the total retail sales of consumer goods went up by 3.2% year on year, 1.1 percentage points faster than that of the previous month, or up by 0.39% month on month. The sales of automobiles and household appliances witnessed good momentum. In September, the retail sales of household appliances and audio-visual equipment, communication equipment, and cultural and office supplies by enterprises above the designated size increased by 20.5%, 12.3% and 10.0%, respectively. The retail sales of automobiles and furniture both increased by 0.4%, with the growth rate shifting from negative to positive. In the first three quarters, the retail sales of services went up by 6.7% year on year.

Fifth, investment in fixed assets continued to expand and investment in high-tech industries grew fast.

In the first three quarters, investments in fixed assets (excluding rural households) reached 37,897.8 billion yuan, up by 3.4% year on year. Investments in fixed assets was up by 7.7%, with investments in real estate development deducted. Specifically, the investment in infrastructure grew by 4.1%; that in manufacturing grew by 9.2%; and that in real estate development dropped by 10.1%. The floor space of newly-built commercial buildings sold was 702.84 million square meters, down by 17.1% year on year, a decline narrowed by 1.9 percentage points and 0.9 percentage point, respectively, compared with that in the first half of the year and in the first eight months. The total sales of newly-built commercial buildings was 6,888.0 billion yuan, down by 22.7%, a decline narrowed by 2.3 percentage points and 0.9 percentage point, respectively, compared with that in the first half of the year and in the first eight months. In terms of industry, investment in the primary industry went up by 2.3% year on year, that in the secondary industry increased by 12.3% and that in the tertiary industry decreased by 0.7%. Private investment declined by 0.2%, or up by 6.4% with the investment in real estate development deducted. The investment in high-tech industries grew by 10.0% year on year, of which the investment in high-tech manufacturing and high-tech services grew by 9.4% and 11.4%, respectively. In terms of high-tech manufacturing, investment in the manufacturing of aerospace vehicles and equipment as well as in the manufacturing of electronic and communication equipment grew by 34.1% and 10.3%, respectively. In terms of high-tech services, the investment in professional technical services, e-commerce services and services for transformation of scientific and technological achievements grew by 31.8%, 14.8% and 14.8%, respectively. In September, the investment in fixed assets (excluding rural households) increased by 0.65% month on month.

Sixth, imports and exports of goods grew fast and trade structures continued to optimize.

In the first three quarters, the total value of imports and exports of goods was 32,325.2 billion yuan, an increase of 5.3% year on year. The total value of exports was 18,614.7 billion yuan, up by 6.2%. The total value of imports was 13,710.4 billion yuan, up by 4.1%. The trade balance was 4,904.3 billion yuan in surplus. Private enterprises’ imports and exports grew by 9.4%, accounting for 55.0% of the total value of imports and exports, 2.1 percentage points higher than that of the same period last year. The imports and exports with Belt and Road partner countries grew by 6.3%, accounting for 47.1% of the total value of imports and exports. The exports of mechanical and electrical products grew by 8.0%, accounting for 59.3% of the total value of exports. In September, the total value of imports and exports was 3,748.0 billion yuan, up by 0.7% year on year. Specifically, the total value of exports was 2,165.3 billion yuan, up by 1.6%. The total value of imports was 1,582.7 billion yuan, down by 0.5%.

Seventh, consumer prices grew mildly and producer prices for industrial products declined.

In the first three quarters, the consumer price index (CPI) rose by 0.3% year on year, 0.2 percentage point higher than that of the first half of the year. Grouped by commodity categories, pricing for food, tobacco and alcohol went down by 0.4%; clothing up by 1.5%; housing up by 0.1%; articles and services for daily use up by 0.7%; transportation and communication down by 1.3%; education, culture and recreation up by 1.7%; medical services and health care up by 1.4%; and other articles and services up by 3.4%. In terms of pricing of food, tobacco and alcohol, the price for fresh fruits went down by 4.7%, grain up by 0.2%, fresh vegetables up by 3.3% and pork up by 5.8%. The core CPI, excluding the prices of food and energy, grew by 0.5% year on year. In September, the CPI went up by 0.4% year on year, or maintained the same level month on month.

In the first three quarters, producer prices for industrial products went down by 2.0% year on year, with the decline narrowed by 0.1 percentage point compared with that of the first half of the year. Specifically, prices in September dropped by 2.8% year on year, or down by 0.6% month on month. In the first three quarters, purchasing prices for industrial producers went down by 2.1% year on year. Specifically in September, prices dropped by 2.2% year on year, or down by 0.8% month on month.

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

In the first three quarters, the urban surveyed unemployment rate averaged 5.1%, down by 0.2 percentage point over that of the same period last year. In September, the urban surveyed unemployment rate was 5.1%, 0.2 percentage point lower than that of the previous month. The surveyed unemployment rate of the population with local household registration was 5.2% and that of the population with non-local household registration was 4.8%, of which, the rate of the population with non-local agricultural household registration stood at 4.6%. The urban surveyed unemployment rate in 31 major cities was 5.1%, 0.3 percentage point lower than that of the previous month. The average weekly working hours of workers employed in the country's enterprises was 48.8 hours. By the end of the third quarter, the number of rural migrant workers totaled 190.14 million, up by 1.3% year on year.

Ninth, household incomes continued to grow and income growth of rural households outpaced that of urban households.

In the first three quarters, the nationwide per capita disposable income of households was 30,941 yuan, a nominal growth of 5.2% year on year, with real growth being 4.9% after deducting price factors. In terms of permanent residence, the per capita disposable income of urban households was 41,183 yuan, a nominal growth of 4.5% year on year and a real growth of 4.2%. The per capita disposable income of rural households was 16,740 yuan, a nominal growth of 6.6% year on year and a real growth of 6.3%. In terms of income sources, the nationwide per capita salary income, net business income, net property income and net income from transfers grew in nominal terms by 5.7%, 6.4%, 1.2% and 4.9%, respectively. The median of the nationwide per capita disposable income of households was 25,978 yuan with a nominal growth of 5.9% year on year.

Generally speaking, the national economy was largely stable with steady progress in the first three quarters, and the effects of policies continued to manifest with major indicators recently showing positive changes. However, we should be aware that the external environment is increasingly complicated and severe, and the foundation for sound economic recovery and growth still needs to be strengthened. Next, 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, strictly implement the decisions and plans of the CPC Central Committee and the State Council, adhere to the general principle of pursuing progress while ensuring stability, fully and faithfully apply the new development philosophy on all fronts, and accelerate the efforts to create a new pattern of development. We must intensify the synergy of existing and incremental policies, advance the implementation and delivery of policies as well as consolidate and enhance the momentum for economic recovery and growth, so as to achieve the annual targets of economic and social development.

That's all I have to say about the main indicators of the national economy in the first three quarters of 2024. Next, I am happy to answer your questions.

Shou Xiaoli:

Thank you, Mr. Sheng. Now, the floor is open for questions. Please state the news organization you represent before asking your questions. You may now raise your hand.

CCTV: 

Overall, China's economy has performed stably since the beginning of this year, but there have also been some new problems and situations. How do you assess the economic performance within the first three quarters as well as the performance in the third quarter? Thank you.

Sheng Laiyun: 

Thank you for your question. Since the beginning of this year, the domestic and international landscapes have been complex and volatile, with intertwined external changes and disruptions and increasing risks and challenges. Domestically, the economy is at a critical stage of structural adjustment and transformation where cyclical and structural contradictions are intertwined, thus the pains of adjustment are being unleashed. Faced with these new situations and problems in economic operations, the CPC Central Committee has exercised overall leadership, faced up to the difficulties, ensured sound decision-making and has promptly strengthened macro regulations. Particularly, in late September, an important meeting of the Political Bureau of the CPC Central Committee convened and released a package of incremental policies, greatly boosting market confidence and unleashing market vitality. Overall, in the first three quarters, national economic operations were stable and saw progress. In September, major economic indicators showed positive changes and the positive factors that drove the economy upward also accumulated. Looking at the data from the first three quarters, three notable characteristics stand out:

First, despite slight fluctuations in growth during the second and third quarters, overall economic operation has remained generally stable and has not changed. From the perspective of four major macroeconomic indicators—growth, employment, inflation and international balance of payments—the economy remained generally stable in the first three quarters. As I have just announced, the economy grew by 4.8% in the first three quarters, with a 5.3% growth in the first quarter, 4.7% in the second and 4.6% in the third. These fluctuations are minor and near the expected target. Employment and price trends were also generally stable. The surveyed urban unemployment rate was 5.1% for the first three quarters, remaining at 5.1% in the first half of the year. The surveyed unemployment rate remained relatively stable, but there was a slight variation with 5.0% in the second quarter and 5.2% in the third quarter. The CPI which reflects the degree of inflation rose by an average of 0.3% over the first three quarters: flat in the first quarter, up by 0.3% in the second quarter and up by 0.5% in the third quarter. Additionally, a basic equilibrium was maintained in the balance of payments. The situation in relation to foreign trade this year has been better than expected with exports growing by 6.2% in the first three quarters, and our foreign exchange reserves returning to $3.3 trillion. Thus, based on the four major macroeconomic indicators—growth, employment, inflation and international balance of payments—economic operations in the first three quarters were generally stable, and the overall stable tone of economic operations has not changed.

Second, the trend of solid progress made in pursuing high-quality development has not changed. We are now in a critical stage of transformation and upgrading, with the main task being promoting the transition of development model and advancing high-quality economic development. In the first three quarters, all regions fully and faithfully applied on all fronts the new development philosophy, firmly advancing high-quality economic development and making new progress in achieving innovative, coordinated, green and open development for all. In terms of development driven by innovation, investments in high-tech industries continued to grow rapidly in the first three quarters with the value-added of large high-tech manufacturing enterprises growing by 9.1% year on year, 3.3 percentage points higher than the average of large industrial enterprises. In terms of coordinated development, whether it's industrial structure, demand structure or regional structure, we are moving towards more coordinated development. From the perspective of industrial structure, the proportion of value-added of the manufacturing industry in that of large enterprises continued to increase. From the perspective of demand structure, the proportion of investment in high-tech industries continued to increase. In terms of green development, green industries like new energy vehicles, lithium-ion batteries and photovoltaic products – the "new trio" – continued to maintain double-digit, high growth. The production and consumption of wind power, nuclear power and photovoltaic power generation also maintained relatively rapid growth. In terms of open development, all regions resolutely advanced high-standard opening up, and, despite the complex and volatile international environment, exports grew by 6.2%. Exports to BRI partner countries grew even faster than the average rate. In terms of development for all, residents' income growth in the first three quarters slightly outpaced GDP growth, people’s wellbeing was ensured, and strong progress was made in food security and energy supply. This year, grain production achieved another bumper harvest. Thus, across these dimensions, China's economy continues to maintain the trend of stable high-quality development, improving structure and rising quality while also ensuring reasonable output growth.

Third, a key point I would like to highlight is that September saw positive changes in the national economy with marginal improvements in most indicators, which signals a trend of bottoming out and stabilizing. Under the influence of a series of policies, especially after the important meeting of the Political Bureau of the CPC Central Committee in late September, a package of incremental policies has been rapidly introduced, greatly boosting market confidence, improving expectations and revitalizing market dynamics. The main indicators for September show positive changes in economic performance. From the perspective of production, both industrial production and services showed marginal improvements. The value-added of large industrial enterprises grew by 5.4% year on year in September, up by 0.9 percentage point compared with August, marking the first rebound after four months of decline in industrial growth. The service production index increased by 5.1%, up by 0.5 percentage point compared with August. From the perspective of demand, total retail sales of consumer goods grew by 3.2% in September, up by 1.1 percentage points compared with August. Fixed asset investment grew by 3.4% year on year from January to September, remaining flat compared to the January-August period. This stability is notable because it followed several months of declining growth rates with the fixed asset investment. Additionally, market expectations have marginally improved. The manufacturing PMI in September was 49.8%, up by 0.7 percentage point compared with August, with the production index rising by 1.4 percentage points to 51.2%. We also conducted a business survey of 100,000 large enterprises, showing that the proportion of large industrial enterprises that expect optimistic fourth-quarter operations increased by 1.3 percentage points from the prior quarter and by 0.9 percentage point year on year. These changes indicate that market expectations are indeed improving positively. Additionally, another positive change in September was the increased vitality of the stock and real estate markets. In August, trading volumes on the Shanghai and Shenzhen stock exchanges fell by 15.3%, but in September trading volumes surged by 32.7%. Real estate market transactions have also become more active, and, although there are fluctuations in sales area and sales value, the accumulated declines are narrowing. During the National Day holiday, as you can see from reports on the Internet, home viewings and real estate transactions both rebounded markedly, reflecting an increase in market activity.

From the perspectives outlined above, we calculate that September saw positive changes in macroeconomic performance, indicating signs of stabilization. However, we also recognize that these changes are still preliminary and that the foundation for a robust economic recovery is not yet solid. In the next phase, we must diligently implement the CPC Central Committee's strategic decisions, accelerate the execution of a comprehensive set of incremental policies and reinforce existing measures to create a synergistic policy environment. This will help consolidate the emerging trend of economic stabilization and recovery, while continuously driving upward economic momentum, optimizing structural adjustments and fostering positive development. Thank you!

Hongxing News:

Since the beginning of this year, a series of macroeconomic measures have been introduced, including policies to encourage large-scale equipment upgrades and consumer goods trade-ins (the "two new" policies), adjustments and optimizations for the real estate sector as well as the issuance and effective use of ultra-long-term special treasury bonds and special-purpose bonds for local governments. Can you share how effective these measures have been so far? Thank you.

Sheng Laiyun: 

Thank you for your question. In response to the new challenges and situations arising in the economy this year, the CPC Central Committee has made sound decisions and has timely implemented a range of policies to support stable economic operations. As you mentioned, this includes the large-scale equipment upgrades and consumer goods trade-ins, adjustments to real estate policies and the effective use of ultra-long-term special treasury bonds and special-purpose bonds for local governments. Notably, as I mentioned earlier, in late September the country announced a package of incremental policies. These measures have significantly boosted market confidence, with some already taking effect and others being rolled out at an accelerated pace. We will see their impact unfold over time.

Judging by the policies rolled out in the first three quarters, the policy outcomes have been quite remarkable. I'll present some data to support this, which I've summarized as "five things that work."

Firstly, these policies have effectively unleashed domestic demand potential. From a consumption perspective, the appliance and audio-visual equipment retail sales at designated large enterprises grew by 4.4% year over year in the first three quarters. This was bolstered by the trade-in policy. The impact was even more pronounced in September for items covered by the trade-in policy, including cars, home appliances, office supplies and home furnishing. In July, relevant departments issued Several Measures to Enhance Support for Large-Scale Equipment Renewal and Consumer Goods Trade-Ins, allocating approximately 300 billion yuan in ultra-long-term special treasury bonds to implement the "two new" policies. Regions also accelerated the issuance of detailed rules, so these policies positively influenced consumption in September. Retail sales of automobiles increased by 0.4% in September, realizing positive turnaround after several months of decline including a 7.3% drop in August. Retail sales of household appliances and audio-visual equipment grew by 20.5% in September, a significant acceleration of 17.1 percentage points compared to August. Retail sales of cultural and office supplies grew by 10% in September, recovering from a 1.9% drop the previous month. Furniture sales also turned from negative to positive in September. From these aspects, the "two new" policies have had a positive effect on consumption and investment, demonstrating an exemplary effect. To report a figure, in the first three quarters, investment in equipment and tools grew by 16.4% year over year, 13 percentage points faster than the overall investment, driving a 2.1 percentage-point increase in total investment and contributing over 60%.

Secondly, these policies have effectively promoted the production of related industries and products. This is the effect of the "two new" policies from the production side. Let me share a few figures: In the first three quarters, the manufacturing of ships and related devices, broadcasting and television equipment, and communication equipment grew by 20.5%, 19.8% and 12.9%, respectively, with these industries experiencing rapid growth driven by large-scale equipment renewal. The production of food manufacturing machinery, specialized equipment for agricultural product processing and specialized packaging equipment increased by 38.1%, 34.6% and 11.8%, respectively. In the first three quarters, the production of new energy vehicles grew by 33.8% while related charging pile production increased by 57.2%. Household refrigerators, air conditioners and smart TVs also achieved rapid growth.

Thirdly, these policies have effectively supported economic stabilization and recovery. This is a natural outcome, as positive changes on both the production and demand sides have led to improvements in key metrics across industry, services, investment and retail. In September, several production and demand indicators showed marginal improvements, indicating that the economy is stabilizing and recovering.

Fourthly, these policies have effectively improved market expectations. Continuous reinforcement of macroeconomic policies has effectively boosted market confidence, with businesses feeling optimistic about their performance in the fourth quarter. In September, the manufacturing PMI rose by 0.7 percentage point from the previous month and the production index rose by 1.4 percentage points, with business conditions for monitored enterprises across traditional and emerging industries both seeing significant improvements.

Fifthly, these policies have effectively revitalized market activity. From the perspective of financial markets, both the stock market and the real estate market have rebounded, with the stock market showing a clear recovery and real estate transactions becoming more active.

Considering these five aspects, we believe that the series of policies issued by the central government to stabilize growth, the real estate market and market expectations are having a positive effect. Some policies are still being implemented. We hope that local governments will urgently issue corresponding detailed rules to enhance the implementation of these central policies, allowing them to unleash greater potential and consolidate the trend of economic stabilization and recovery. Thank you!

South China Morning Post: 

I have a question about the real estate industry. Could you elaborate on the current situation in the real estate sector? According to the latest data, has there been any improvement in the real estate industry since the government announced new policies to prop up the property market on May 17? What are your views on future trends, especially considering the recent introduction of many new policies? Thank you.

Sheng Laiyun: 

Thank you for your questions. The real estate market has been adjusting continuously over the past two years. As a result, the central and local governments have launched a series of policies in the last two years to stabilize the real estate market and promote its healthy development, including the new real estate policy issued on May 17, as you mentioned, and a series of stabilization and recovery policies introduced by relevant departments since September, following a central Politburo meeting. Just yesterday, I noted that several departments have held press conferences here, comprehensively detailing the meaning, measures and effects of these real estate policies. I share the general sentiment that these policy measures are effectively stabilizing the real estate market as well as boosting confidence.

From our statistical data, in the first three quarters, these real estate policies played a positive role in stabilizing the market and halting the sector's decline. I just reported in several data points that while real estate development investment remained at minus 10.1% from January through September, the rate of decline narrowed compared with the January-August period, signaling a positive trend. Although the real estate sector is still undergoing adjustments in terms of both sales area and value, the decline has narrowed. The decrease in newly built commercial housing sales area narrowed by 1.9 percentage points compared to the first half of the year, slowing for four consecutive months, while sales value narrowed for five consecutive months. Additionally, central government departments supported real estate companies in enhancing liquidity. Consequently, funds received by real estate development enterprises from January to September also saw a narrowing decline, decreasing by 2.6 percentage points compared to the first half of the year, with the decline narrowing for six consecutive months. These developments indicate that real estate policy measures are gradually taking effect and steering the property market toward stabilization.

With the rollout and implementation of the comprehensive real estate policy package, we maintain an optimistic outlook for the property market going forward. As discussed at yesterday's press conference, this package of measures, which aims at stabilizing the market and halting the decline, is quite substantial, involving multiple departments and levels. Once fully implemented, these measures will certainly have a positive impact. Based on recent changes in real estate professionals' expectations and actual transactions during the National Day holiday week, we have reason to be optimistic about future market trends. I'd like to share two data points from our recent monthly survey of real estate developers and agencies in 70 large and medium-sized cities. Among real estate professionals, the proportion expressing optimism about new home sales in September increased by 10 percentage points compared with the previous month. For second-hand home sales, those expressing optimism rose by 6.5 percentage points. This improvement in confidence is quite significant.

Additionally, everyone has noticed changes in the real estate market during the National Day holiday week, with many properties seeing significant improvements in both visitor traffic and transaction volume. According to preliminary statistics from some market institutions, the transaction area for new homes increased by 102% during the holiday week, while the second-hand home transaction area rose by 205%. These changes are quite remarkable. Therefore, we have reason to believe that the real estate market will show positive developments. Thank you.

China Business Network:

We have seen new macroeconomic policies introduced recently. How will the economy perform in the fourth quarter? Additionally, with just over two months left until year-end, can annual GDP growth reach our target of about 5%? Thank you.

Sheng Laiyun:

Thank you for your question. I understand everyone is concerned about economic trends in the fourth quarter. Based on economic performance in the first three quarters and the implementation effects of incremental policies, we believe favorable conditions for economic stabilization and recovery are increasing. Our confidence in achieving the target of about 5% growth is strengthening.

First, the GDP growth of 4.8% in the first three quarters has established a solid foundation for achieving the annual target. This growth rate didn’t come easily. The macroeconomic environment has been complex and volatile this year, particularly with mounting external pressures and ongoing internal structural adjustments, which continue to cause ongoing transitional challenges. However, the Chinese economy has withstood these pressures, maintaining stability. This demonstrates the strong resilience and potential of China's economy, and this growth rate provides a foundation for sustained recovery ahead.

Second, economic performance showed positive changes in September, strengthening our confidence in development. Particularly after the Political Bureau of the CPC Central Committee meeting, a series of incremental policies were expedited and implemented, significantly boosting market participants' confidence. When confidence exists, businesses invest more readily and consumers are more willing to spend. Moreover, some expectation indicators have shown positive changes.

Third, the combined force of these policies will strengthen economic recovery momentum. These policies will positively impact investment, consumption and industrial development. There remains significant room for new policies, and existing ones carry substantial value. Local regions are urgently implementing these policies to achieve tangible results, which will greatly boost economic development momentum. The central government's recent policy package includes measures for stable economic growth and policies promoting structural optimization and new quality productive forces. Additionally, reform plans introduced after the third plenary session of the 20th CPC Central Committee are being implemented. Thus, aggregate policies, industrial policies and structural reform measures will work together synergistically.

Fourth, leading indicators point to trends of economic stabilization and positive changes. Early October electricity consumption, changes in production material prices, and consumer activity during the National Day holiday all suggest economic stabilization in the fourth quarter is highly probable. Prices, especially those of production materials, are crucial leading economic performance indicators. Comparing early October with late September, 33 out of 50 monitored production materials saw price increases, three remained stable, and only 14 declined. In contrast, between mid-September and early September, only 18 increased, two stayed the same, and 30 decreased. The recovery of prices is beneficial for improving business operating conditions. For example, steel and chemical product prices have shown positive signs of stabilization and recovery. National Day holiday data highlights China's consumer potential, with increased traveler numbers. According to the Ministry of Culture and Tourism, during the seven-day National Day holiday, domestic travel increased 5.9% year-on-year, travel spending grew 6.3%, and the number of travelers rose 7.9% compared with the same period in 2019.

Based on these factors, we assess that the economy will continue September's stabilization and recovery trend through the fourth quarter. We're confident in achieving our full-year goals. Thank you.

National Business Daily：

We have noticed that the year-on-year increase of the CPI fell back in September compared to August. What are the factors behind this? How does the NBS view the current price level, and what are the predictions for future trends? Thank you. 

Sheng Laiyun:

Thanks for your questions. In September, the CPI increased by 0.4% year on year, and maintained the same level month on month. The year-on-year increase dropped by 0.2 percentage point compared with the previous month. The reasons are as follows: First, the month-on-month increase in food prices went down. August witnessed more extreme weather like heatwaves, typhoons and torrential rains, which affected the supply of vegetables and other foods. Food prices in August rose 3.4% month on month, and its month-on-month increase in September was 2.6 percentage points lower than that in the previous month. Second, service prices including flight tickets and tourism costs decreased after the summer holiday, reducing the impact of service prices on the CPI. Third, oil prices dropped. Affected by the fall in international crude oil prices, domestic refined oil prices were also going down. Due to these factors, the increase of the CPI in September slowed down compared to the CPI in August.

Actually, observing CPI trends in our country as well as trends with industrial commodity prices, our country's price formation is still relatively complex, which fully reflects China's vast territory, diverse industrial levels and relatively large differences in structural changes. Generally speaking, prices in the first three quarters showed three characteristics: varying within a small range, rising moderately and diverging significantly.

First, price fluctuations were maintained within a small range. Both the CPI and the PPI showed small fluctuations. Since April, the year-on-year monthly increase of the CPI had been maintained between 0.3% and 0.6%. In the first three quarters, the CPI went up 0.3% year on year, while the PPI continued its downward trend, which showed that the oversupply in the domestic market was still prominent.

Second, prices rose moderately. As the economy recovers and policies to stabilize the economy continues to be implemented, aggregate social demand keeps rising, which is conducive to the moderate growth of the overall prices. The CPI maintained the same level in the first quarter, went up 0.3% in the second quarter and increased 0.5% in the third quarter, registering a quarter-on-quarter increase. The PPI dropped 2.7% in the first quarter, went down 1.6% in the second quarter and decreased 1.8% in the third quarter, showing slower declines overall. This fully indicated that the economy has been recovering. Prices would not rise moderately without a sustained economic recovery.

Third, prices saw different trends. The year-on-year quarterly increase of the CPI continued to climb, while the PPI, although its decrease slowed, still declined. It shows that the price trends were relatively complex. Fluctuations with prices were due to distinct temporal and structural factors. The PPI declines was attributed not only to insufficient demand, but also to structural reasons including imported pressure. As international prices of crude oil and minerals slumped, importing these products would bring down prices in related domestic industries. Additionally, the adjustment of the real estate sector has resulted in lower prices of relative products such as steel, cement and building materials. These demands may hardly return to the previous level, since demands might have been transferred and traditional industries have been cutting overcapacity. Such structural changes might occur at the current stage. Others were indeed due to fluctuations in the market, overall demand and periodic changes. In a word, the change and trend of the PPI demonstrates strong structural characteristics. 

The above trends indicate that the economy is recovering. In the next stage, according to our predictions, the price changes will continue to follow the trends in the first three quarters, featuring price fluctuations within a small range, moderate price growth, and slower PPI decline. As the economy continues to improve and overall demand increases, product prices are expected to rise, especially after the introduction of a package of incremental policies. The CPI is also affected by seasonal factors. Some foods will face undersupply when entering winter, but their demand will gradually increase. For example, the consumption of pork will increase during the winter, especially when approaching the New Year and the Spring Festival holidays. Such are changes caused by seasonal factors. With the carry-over effect fading, the CPI would keep growing moderately and the PPI would continue to show narrowing declines in the fourth quarter. Thank you.

Nanfang Daily:

This year's graduation season has already passed. Based on employment data, how does the NBS assess the current job market? What policies and measures will be taken to advance high-quality employment? Thank you.

Sheng Laiyun:

Thanks for your questions. Employment is a common concern, directly connected to people's incomes and consumption. The CPC Central Committee attaches great importance to it. Since the beginning of this year, a number of policies have been introduced to stabilize employment, especially for college graduates. Lately, a special document has been issued to boost the high-quality development of employment, and local governments are stepping up efforts to implement it. From our statistics, two features are comparatively obvious.

Employment has been generally stable, although there is pressure on the total volume of employment. Just now, I stated some data on the surveyed unemployment rate, which was sampled survey data conducted by our department. The urban surveyed unemployment rate stood at 5.1% in the first three quarters, specifically, 5.2% in the first quarter, 5% in the second quarter, and 5.2% in the third quarter. Overall, employment remained stable. The data from the third quarter was higher than that in the second quarter due to seasonal factors, such as the graduation season in July and August. What made overall employment maintain stable in our country? There are several reasons. In addition to what I have just said about the high importance attached to employment by Party committees and governments at all levels, we have adopted a series of strong policies to support employment. We also enjoy institutional advantages and benefit from some fundamental factors. As for the latter, I think there are three fundamental factors that support the overall stability of employment in our country.

First, the economy continues to grow. In the third quarter, GDP grew by 4.6%, compared to 4.9% in the same period last year. Although the growth rate fell year on year, the actual GDP increment expanded. For example, this year's third-quarter GDP exceeded last year's by 1.2934 trillion yuan. This substantial GDP growth has driven an increase, rather than a decrease, in overall labor demand - a key economic indicator.

Second, structural transformation is underway. Since the 18th CPC National Congress, China's economic structure evolved continuously. One notable change is the service sector's growing share of GDP. Since 2015, the service sector has accounted for over 50% of GDP, reaching around 55% last year. In the third quarter of this year, the service sector comprised 54.4% of GDP, up 0.4 percentage point from the same period last year. What benefits has the growth of the service sector brought us? It enhances employment flexibility. Since the service industry is mostly labor-intensive, it has a strong capacity to generate jobs. Consequently, this structural transformation has expanded our economy's ability to create employment opportunities.

Third, the demographic structure is changing. Since the 18th CPC National Congress, China's population structure has undergone significant changes. Most notably, the working-age population (ages 16-59) has been declining. From 2013 through last year, this demographic decreased by approximately 5 to 6 million people annually on average, with a net decrease of about 10 million people last year. This trend fundamentally affects overall labor dynamics. With demand increasing and supply decreasing, the overall employment situation has maintained relative stability. This provides inherent support for our national unemployment surveys and overall employment situation. Looking ahead, I believe these demographic factors will continue to play a role. Therefore, while overall employment levels face certain pressures, the foundation for general stability remains robust.

We also confront a pronounced challenge in the form of structural mismatches within our labor market. On the one hand, youth unemployment remains relatively high, creating substantial pressure on that demographic. On the other hand, however, we also observe difficulties in recruitment in the manufacturing sector. Particularly, there is a shortage of skilled workers on the frontline of some manufacturing industries. Thus, structural mismatches represent a defining characteristic of our current labor market. In the future, we need to promote full employment and advance high-quality employment development. We must leverage our strengths to continue driving stable economic development, creating more job opportunities, while gradually addressing structural issues within our development process to ultimately achieve full employment and promote high-quality employment development.

Thank you!

CNBC:

I'm wondering, what is the impact of China's trade-in policy on retail sales? Thank you. 

Sheng Laiyun:

Thank you for your question. I've already touched on some impacts of the trade-in policy, but let me address retail specifically, as it's indeed a crucial indicator of consumer market trends. Statistics show clear evidence of the policy's effectiveness. Total retail sales of consumer goods grew by 3.2% in September, up 1.1 percentage points from August, with 3.3% growth for the first three quarters. The trade-in policy has played a significant role, especially in September. As I mentioned earlier, following the central government's July announcement of major equipment upgrades and consumer trade-in initiatives, local implementation accelerated through August and September, with the policy effects becoming more pronounced in September. I'd like to highlight several figures for September. The retail sectors benefiting most from the trade-in policy are automobiles, home appliances, office supplies, and home furnishings. Our targeted research shows automobiles and home appliances experienced the broadest benefits, with around 60% of key retailers benefiting. The home furnishing sector saw a more limited impact, with benefits reaching less than 20% of businesses. However, looking at the enterprises that have already benefited, their retail growth rates have been comparatively high. Retail sales for benefiting enterprises in sectors like home appliances grew by over 30% in September. Additionally, auto sales by businesses above a certain scale (each with an annual revenue exceeding 5 million yuan) rose 0.4%, shifting from negative to positive growth. Household appliances and audio-visual equipment achieved their first high growth rate of over 20% this year, with smart home appliances growing by over 30%. Cultural and office supplies registered 10% sales growth, and furniture sales shifted from negative to positive growth. Based on these four categories that benefited most, retail sales by businesses above a certain scale are projected to increase by 1.2 percentage points. The policy's effects are clearly evident. We expect that the swift implementation of related policies will continue to yield positive results. 

Thank you!

Shou Xiaoli:

Due to time constraints, we only have time for two final questions.

Economic Daily:

The CPC Central Committee has called for accelerating the cultivation of new quality productive forces. Could you please provide an update on the development of new quality productive forces in the first three quarters of this year? Thank you.

Sheng Laiyun:

Thank you for your question. Developing new quality productive forces represents both an inherent requirement and a central focus in promoting high-quality development. Therefore, Party committees and governments at all levels attach great importance to this task and resolutely implement the decisions and deployments of the CPC Central Committee, tailoring the development of new quality productive forces according to local conditions. Our statistical data shows clear evidence of progress, with accelerated development of new quality productive forces.

First, from the perspective of investment in innovation, the investment continues to increase. Last year, China's total research and development (R&D) expenditure exceeded 3.3 trillion yuan for the first time, ranking second in the world, and playing an important role in driving high-tech industries and fostering innovation. This year, a report by the World Intellectual Property Organization (WIPO) showed that China's innovation index ranking has risen by one position, and now stands at 11th. Additionally, from the perspective of high-tech industry investment, investment in high-tech industries increased by 10% year on year in the first three quarters. As we know, fixed asset investment in the first three quarters increased by 3.4%, meaning that investment in high-tech industries was 6.6 percentage points higher. Furthermore, the contribution rate of high-tech industry investment to the overall growth of fixed asset investment reached 27.1%. Therefore, investment in innovation is continuously increasing.

Second, from the perspective of new quality productive forces, innovative outcomes are continuously emerging. In the first eight months of this year, data from intellectual property-related departments indicate that the number of invention patents granted increased by more than 20% year on year. A more advanced quantum computer has been launched, and more space missions have been carried out, along with major national projects and significant achievements continuing to emerge.

Third, new industries are developing at an accelerating pace. The added value of high-tech manufacturing enterprises above designated size increased by 9.1% year on year in the first three quarters, which is 3.3 percentage points higher than the growth rate of industrial enterprises above designated size. The added value of information transmission, software and information technology service industries increased by 11.3% in the first three quarters, which also significantly exceeded the growth rate of the overall service industry. The digital economy is advancing quickly, and the added value of digital product manufacturing is growing fast.

Fourth, new business forms and models are rapidly forming and expanding. Online retail sales continue to experience a high growth rate, with the online retail sales of physical goods increasing by 7.9% year on year in the first three quarters. Instant retail and livestream e-commerce also continue to experience high growth rates.

Based on the above circumstances, new quality productive forces are being rapidly cultivated and formed. However, this process involves a transition from quantitative to qualitative changes. Our country’s economic transformation and high-quality development ultimately depend on technological support and the rapid formation of new quality productive forces. The third plenary session of the 20th CPC Central Committee clearly proposed improving the institutions and mechanisms for fostering new quality productive forces in line with local conditions. A significant portion of the latest incremental policies is aimed at promoting the development of new quality productive forces. Therefore, we believe that with the implementation of these incremental policies and the reforms in place, there is considerable potential for the development of China’s new quality productive forces. Thank you.

Shou Xiaoli:

One last question, please.

The Beijing News:

We have noticed that the growth rate of industrial added value in September rebounded for the first time after four months of continuous decline. As such, Mr. Sheng, how do you assess the current performance of the industrial sector? What is your forecast for the trend in the upcoming period? Thank you.

Sheng Laiyun:

Thank you for your question. The industrial sector has been a bright spot in the economy this year. As you may have noted from the data, GDP grew by 4.8% in the first three quarters, while industrial output increased by 5.8%, surpassing GDP growth by 1 percentage point. The industrial sector has been crucial in supporting steady economic growth, contributing nearly 40% of GDP in the first three quarters. Why has the industrial sector performed so well and become a highlight of the economy?

First, the foundation of China’s industrial sector is solid. China is the only country that covers all of the more than 500 industrial sectors recognized by the United Nations. Our industrial system is highly resilient, with strong supporting capabilities and significant flexibility. Despite external shocks and internal pressures from structural adjustments, the industrial sector has continued to demonstrate strong competitiveness.

Second, the solid performance of the industrial sector is also attributable to the support from exports. In the first three quarters of this year, the export delivery value of the industrial sector increased by 4.1%, while total goods exports rose by 6.2%. These export products have not only showcased China’s processing capabilities but also underscored the vital role that exports play in supporting industrial development.

Third, the growth of new drivers and the development of new quality productive forces, as I mentioned earlier, have also provided crucial support. In recent years, particularly since the 18th CPC National Congress, we have intensified efforts to promote industrial restructuring and transformation, accelerating the development of new quality productive forces within the industrial sector. Our data indicates that the trend toward industrial upgrading, encompassing high-end, intelligent and green development, has become increasingly evident. Over the past few years, the added value of high-tech industries has increased by 3 to 4 percentage points faster than that of industrial enterprises above designated size on average. Additionally, industries related to the digital economy, as well as the new energy sectors in which we have competitive advantages, have also sustained rapid growth, providing strong momentum for the stable development of the industrial sector.

Another important reason, as I mentioned earlier, is the adoption of the policy to issue ultra-long special treasury bonds to implement major national strategies and build up security capacity in key areas and the policy to promote large-scale equipment upgrades and trade-ins for consumer goods. Earlier, I provided an overview of the policy effects, noting that the new energy vehicle (NEV) sector has benefited significantly. In the first three quarters, NEV production increased by 33.8% year on year. Related manufacturing sectors, such as metal smelting equipment and CNC forging and pressing equipment, have also sustained double-digit growth in output. These policy effects continue to be realized.

These four factors have contributed to the robust performance of the industrial economy this year, playing a crucial role in ensuring the stable operation of the overall economy. Looking ahead to the next stage, the industrial sector faces certain pressures, such as ongoing declines in industrial product prices, the need to improve corporate profits, the necessity to enhance industrial capacity utilization, and the trend for some traditional industries to accelerate adjustment, transformation and upgrading, all structural issues to be addressed through reform and transformation.

However, from a broader perspective, I believe the industrial sector will continue to sustain stable growth momentum. The supporting factors I mentioned earlier remain in place, and internal drivers, such as new growth engines and economic transformation, are expected to strengthen further. Especially in the fourth quarter, as the package of policies is implemented, China’s industrial economy is anticipated to maintain stable growth, making improvements in both quality and efficiency. Thank you.

Shou Xiaoli:

Thank you to Mr. Sheng and all the reporters for your participation. That concludes today's press conference. Goodbye.

Translated and edited by Yan Bin, Li Huiru, Mi Xingang, Wang Yanfang, Wang Yiming, Zhou Jing, Wang Xingguang, Wang Qian, Lin Liyao, Wang Wei, Chen Xinyan, Zhang Junmian, Liu Caiyi, Yuan Fang, 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.

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Read in Chinese

Speakers:

Mr. Ni Hong, minister of housing and urban-rural development

Mr. Song Qichao, assistant minister of finance

Mr. Liu Guohong, vice minister of natural resources

Ms. Tao Ling, deputy governor of the People's Bank of China

Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration

Chairperson:

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

Date:

Oct. 17, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning! Welcome to this State Council Information Office (SCIO) press conference. Today, we have invited Mr. Ni Hong, minister of housing and urban-rural development, to share information on promoting the steady and healthy development of the property sector and to address issues of interest. Also in attendance are Mr. Song Qichao, assistant minister of finance; Mr. Liu Guohong, vice minister of natural resources; Ms. Tao Ling, deputy governor of the People's Bank of China (PBC); and Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration (NFRA). 

Now, I'll invite Mr. Ni to give his briefing.

Ni Hong:

Ladies, gentlemen, and friends from the media, good morning! I'm pleased to meet with you today to discuss developments in the property sector, alongside my colleagues from the Ministry of Finance (MOF), Ministry of Natural Resources (MNR), PBC, and NFRA. First, I'd like to express my sincere thanks for your attention to and support of our work in the property sector.

The Communist Party of China (CPC) Central Committee attaches great importance to the steady and healthy development of the property sector. On Sept. 26, a meeting of the Political Bureau of the CPC Central Committee emphasized the need to stabilize the property market and halt its decline. The meeting also stressed that we should strictly limit expansion, optimize existing resources, and improve the quality of housing. It also called for addressing public concerns by enhancing policies on land use, taxation, and financing to foster a new development model for the real estate sector. On Sept. 29, the State Council convened an executive meeting to study and arrange specific implementation measures.

The Ministry of Housing and Urban-Rural Development (MOHURD), along with the MOF, Ministry of Natural Resources, PBC and NFRA, has guided local governments to take prompt action. This includes implementing existing policies and introducing new ones through a comprehensive package of measures aimed at stabilizing the market and ending its downward trend. 

These measures involve scrapping restrictive policies, easing financial burdens, and intensifying support. 

We have given municipal governments greater decision-making powers to regulate the real estate market, allowing them to reduce or abolish restrictions on housing purchases based on local conditions. These include eliminating restrictions on housing purchases, sales, and pricing, as well as scrapping relevant standards for ordinary and non-ordinary housing. 

We've lowered the interest rate for housing provident fund loans by 0.25 percentage point; lowered the down payment ratios for housing mortgages, with the minimum down payment ratio for both first and second homes set at 15%; decreased interest rates for existing loans; and reduced taxes and fees for those selling old homes to buy new ones. Through implementing these policies, we have alleviated home purchasing costs and loan repayment pressures, helping people fulfill their needs for both basic and improved housing.

Through providing monetary compensation, we plan to renovate 1 million homes in urban villages and dilapidated housing. Residents in urban villages are eager for such renovation because their living environment is unsatisfactory and rife with hidden safety risks. According to our investigations, 1.7 million homes in urban villages across 35 major cities need renovation. When including other cities nationwide, this number becomes significantly larger, as there are renovation needs in other cities as well. A separate investigation shows that 500,000 old and dilapidated houses across the country require renovation. This 1-million-home renovation initiative primarily targets residential projects with suitable conditions that can be expedited through enhanced policy support. By receiving monetary housing compensation, residents can choose appropriate housing according to their preferences and needs, eliminating or reducing the need for temporary housing as they can relocate directly to their new homes. This will also facilitate the sale of existing commercial housing. By year-end, loans to white-listed real estate projects will reach 4 trillion yuan. The urban real estate financing coordination mechanism will work to include all qualified real estate projects in the "white list" and ensure loans are granted when conditions are met, thereby addressing their reasonable financing needs.

We can see that these policies have taken effect. The decline in property development investment and sales of new homes, among other main indicators, has continued to narrow. Particularly, since the end of September, there has been a significant increase in the number of visits to new property projects and in the number of sale contracts, while transactions of second-hand houses have continued to rise. The market is showing positive changes.

Reports indicate that many local governments have intensified policy support for the property sector, resulting in a rebound in the property market of first-tier cities. Moving forward, we will work with relevant departments to firmly implement the decisions and arrangements of the CPC Central Committee and the State Council, carrying out each task to fully realize policy benefits and serve more people.

Now, my colleagues and I are ready to answer your questions. Thank you.

Shou Xiaoli:

Thank you for your briefing, Mr. Ni. The floor is now open for questions. Please raise your hand before asking a question.

21st Century Business Herald: 

As far as we know, since its establishment, the urban real estate financing coordination mechanism has played a significant role in facilitating financing for property projects and ensuring the construction and delivery of houses. A recent meeting of the Political Bureau of the CPC Central Committee proposed increasing loans for white-listed real estate projects. What specific measures will the NFRA take to advance this work? Thank you.

Xiao Yuanqi:

Thank you for your question and for your interest in this work. The CPC Central Committee and the State Council attach great importance to the property sector and have made a series of crucial decisions and arrangements. Since the beginning of this year, we have worked with MOHURD to provide guidance on establishing the urban real estate financing coordination mechanism and incorporating qualified real estate projects into the white list to secure stronger support from financial institutions.

On Sept. 26, as you just mentioned, a meeting of the Political Bureau of the CPC Central Committee called for increasing loans to white-listed projects. We are currently implementing these directives by focusing on the following aspects:

First, all commercial housing project loans should be included in the white list to ensure comprehensive coverage. Established over six months ago, the white list and urban financing coordination mechanism have yielded valuable experiences and practices through collaborative efforts. A relatively complete system has been developed in areas such as government coordination and promotion, financial support, and judicial enforcement guarantees. Once included in the white list, the management of real estate projects becomes more standardized, and financing becomes more convenient and rapid, playing a crucial role in the completion and delivery of projects as well as in protecting the legitimate rights and interests of homebuyers. Let me share an example: In Zhuhai, Guangdong province, there was a residential project where some units had been sold, but the project was later halted due to various reasons. After the establishment of the urban financing coordination mechanism, corresponding financing coordination mechanisms were set up at provincial, municipal, and several other levels. Through these mechanisms, the project qualified for white list inclusion. Consequently, a state-owned bank extended an additional loan of 600 million yuan to the project. This led to the swift resumption and completion of the project, along with the simultaneous construction of supporting facilities. The project quickly became one of Zhuhai's most sought-after residential developments. The completed project's quality amenities attracted numerous homebuyers.

Following thorough research, we have determined that conditions are suitable for including all commercial housing development loan projects in the white list. Henceforth, real estate projects that meet the white list criteria should be managed according to the white list system, ensuring comprehensive inclusion. In terms of specific procedures, we will adopt both review and filing methods. For the review process, we will maintain the existing urban financing coordination mechanism for white-listed projects. Additionally, real estate project companies can consult with banks, which will conduct financing according to credit standards. Projects will then be filed through the white list mechanism and managed under the white list. As I mentioned earlier, once included in the white list, project management becomes more standardized, and financing becomes quicker and more convenient. This facilitates housing construction and helps protect all parties' legitimate rights and interests.

Second, commercial banks should provide necessary loans for white-listed projects. We have already guided banks to enhance their efforts, building on the existing task force mechanism, to implement loan disbursement progress on a project-by-project basis. This involves appropriately delegating approval authority, increasing the efficiency of approvals and disbursements, and issuing loans in a timely manner according to project construction progress. Urban coordination mechanisms should also actively coordinate with relevant parties to intensify efforts to rectify problematic projects, fulfill loan disbursement conditions, and collaborate with financial institutions to ensure effective loan review and disbursement. In principle, banks should extend all possible loans to white-listed projects that maintain compliance with requirements.

Third, we will optimize loan disbursement methods to expedite funding. Currently, commercial banks disburse loan funds to real estate project companies in batches according to project construction progress, directly entrusting payments to suppliers, contractors and other upstream and downstream enterprises. Moving forward, commercial banks under the premise of coordination can advance the entire loan amount to a project fund supervision account set up by a real estate company, and according to the usage plan provided by the real estate company. Subsequently, funds can be disbursed from the supervision account to intended recipients upon actual usage requests, advancing the timeline for fund disbursement. Once credit approval is obtained, the entire loan can be issued to the project's fund supervision account. The advantage of this approach is that loan funds can be quickly allocated to the accounts of white-listed project companies. This allows for earlier payments to upstream and downstream enterprises, such as cement and steel suppliers, as well as construction companies, ensuring that real estate and housing projects can commence construction early or ahead of schedule. Additionally, loan funds deposited into the project fund supervision account are earmarked for specific purposes and managed under strict oversight, preventing misappropriation. The loan funds are dedicated to the construction of the project and its supporting facilities, ensuring they are fully used for project completion and delivery, which helps protect homebuyers' legitimate rights and interests.

As of Oct. 16, approved loans for white-listed real estate projects totaled 2.23 trillion yuan. By the end of 2024, the approved loan amount for white-listed projects is expected to double, exceeding 4 trillion yuan. To ensure adequate financing for real estate projects and the successful completion and delivery of housing, we will continue to optimize and improve the financing mechanism for white-listed real estate projects. This will ensure all eligible projects receive prompt inclusion, loan approval and fund disbursement.

This concludes my response to this question. Thank you.

Reuters:

First-tier cities like Beijing, Shanghai, Shenzhen and Guangzhou have recently relaxed their housing purchase restrictions. Data shows that during the National Day Golden Week, these cities saw significant increases in property viewings and home sales, while smaller cities did not see much improvement in housing sales during the holiday. Will MOHURD lift all purchase restrictions in these mega-cities? What impact will this "siphon effect" — people flocking to big cities to buy homes — have on the stability of China's overall real estate market? Thank you.

Ni Hong:

Thank you for your questions. You've raised two points: first, about housing purchase restrictions, and second, about the "siphon effect." Let me address both issues.

First, regarding housing purchase restrictions. As I mentioned earlier, since last year, various cities have been granted full authority over real estate regulation. City governments are now empowered to make their own decisions based on their specific economic and social development and current real estate situation. Let me provide some information on the four first-tier cities you mentioned. By the end of September, these four cities adjusted their housing purchase restrictions in slightly different ways: Beijing and Shanghai relaxed their restrictions, Guangzhou fully lifted them, and Shenzhen partially lifted them in certain areas. These adjustments fully demonstrate a tailored and autonomous decision-making approach based on the specific conditions of each city.

Second, regarding the "siphon effect" you mentioned. As a general trend, this is common in the development of world cities. The siphon effect has both positive and negative impacts, and its effects can vary across different cities and different stages of development. In the process of urbanization, China has focused on coordinated development among large, medium and small cities as well as towns. Adopting city-specific policies in the real estate market is an institutional arrangement designed to prevent the negative impacts of the siphon effect in the real estate sector. Thank you.

CCTV:

Mr. Ni just mentioned the plan to renovate 1 million homes in urban villages and dilapidated residential properties. Could you please elaborate on the arrangements? Thank you.

Ni Hong:

Thank you for your question. As I mentioned earlier, this policy combination includes two new additions. Mr. Xiao just addressed the loan support of 4 trillion yuan, and I will now explain our considerations behind the project for renovating1 million homes in urban villages and dilapidated residential properties.

I mentioned this demand in my introduction. With urban development, buildings age over time, and some eventually become dilapidated. This creates a need for renovation. We conducted surveys in key cities, which revealed demand for renovating 1.7 million houses across 35 major cities. It is clear that this demand is significant and growing in China's297 prefectural-level cities.

This time, we have decided to expand our renovation efforts by an additional 1 million houses. Through a monetization approach, we are increasing policy support, especially for projects with mature renovation conditions, strong community demand for renovation, supported by thorough preliminary groundwork. The first advantage is that monetized settlements enable residents to choose housing types and locations according to their preferences. The second advantage is that it allows for a swift transition to new homes, bypassing the typical waiting period of several months. Third, this approach can eliminate safety hazards, improve living conditions and enhance urban functionality. Lastly, given the significant changes in the current real estate supply-demand dynamics, this policy helps clear existing inventory.

So, what kind of projects are eligible for policy attention and support? I believe two criteria are essential. First, there must be strong resident demand for renovation and significant safety concerns. Second, the plans for the project should be well-developed: the relocation and resettlement plan should facilitate a smooth process and safeguard residents' rights, while the comprehensive financial plan should be balanced overall and avoid new local debt risks.

There are five main policies in place. First, cities at the prefectural level and above are prioritized for support. Second, developmental and policy-based financial institutions can provide special loans. Third, local governments are allowed to issue special government bonds. Fourth, tax breaks and other fiscal incentives are provided. Fifth, commercial banks can offer commercial loans based on project evaluations.

With the backing of these five policies, regions can further plan and implement projects with mature conditions in conjunction with urban renewal efforts. With well-executed preliminary work, we can extend our support beyond the initial 1 million houses. Thank you.

Zhinews of Shenzhen Satellite TV:

The Ministry of Finance previously announced policies to support land reserves through special bonds and government-subsidized housing via the purchase of existing housing stock. Could you provide details on the measures and considerations involved? Thank you.

Song Qichao:

Thank you for your question. To promote the stable and healthy development of the real estate market, the Ministry of Finance will coordinate with relevant departments to implement policies utilizing special bonds for land reserves and the acquisition of existing commercial housing. These two policies are designed to address key challenges in the real estate market. They not only help stabilize and revitalize the real estate market, but are also crucial for implementing the decisions made at the third plenary session of the 20th CPC Central Committee, expanding the scope of special bond support and their use as project capital. These measures help promote a balance between supply and demand in the land market, and alleviate liquidity and debt pressures for local governments and real estate enterprises, increasing the sources of government-subsidized housing and ultimately enhancing people's well-being.

Regarding the specific implementation of using special bonds for land reserves, the focus is on supporting regions to determine reasonable acquisition prices in collaboration with existing land owners based on the actual circumstances. This involves handling the debt relationships associated with acquiring existing land, appropriately defining the content and scope of special bond projects, and promptly arranging bond issuance and expenditures. The aim is to enhance the efficiency of land resource utilization and the effectiveness of bond fund utilization.

The policy of supporting local governments to effectively use special bonds to purchase existing commercial housing as government-subsidized housing primarily involves independent and voluntary decisions by local authorities, following the principles of the rule of law and operating in a market-oriented manner. While ensuring the balance of project financing returns, local governments can use special bonds to purchase existing commercial housing as government-subsidized housing. This policy will complement other relevant support measures to further diversify local funding sources, effectively clearing existing inventory to promote supply-demand balance, and optimizing new additions by gathering resources through multiple channels for government-subsidized housing.

Looking ahead, we will work with relevant departments to finalize the specific rules and requirements of the policies to expedite their implementation. Thank you.

Beijing Youth Daily:

My question is about housing. Buying a house often poses significant economic pressure for some new urban residents and young people. Does the Ministry of Housing and Urban-Rural Development have any considerations or arrangements to help address their housing issues? Thank you.

Ni Hong:

Thanks to this young journalist. I believe when young people have hope, their city has hope. When young people have a future, their city certainly has a future. Solving housing problems for new residents and young people, ensuring they can live and work contentedly in cities, is both an undeniable responsibility of city governments and a key measure for enhancing urban competitiveness.

Regarding housing solutions, our national policy operates on two fronts: housing security and market mechanisms. The government leads efforts to secure basic housing needs while the market meets people's diverse demands for improved housing.

Housing security operates through two approaches: leasing and purchasing. For the leasing approach, we are vigorously developing affordable and public rental housing for new residents and young people, with options ranging from single beds to private rooms to full suites. This enables them to move in, settle down, live comfortably and focus on their careers. Governments at all levels attach great importance to urban low-income households facing housing difficulties, implementing public rental housing programs and ensuring that low-income families who face housing difficulties are fully covered by the housing guarantee system. Public rental housing also offers two approaches: physical leasing and cash subsidies. The purchasing approach serves those with some financial capacity who, while temporarily unable to buy commercial housing, can purchase affordable housing. This system operates on demand-driven construction and purchasing. Housing resources are gathered through new construction or by purchasing eligible commercial properties for conversion to affordable housing. We've adapted to changing circumstances, particularly considering families with two or more children. We require and support local governments to appropriately increase the size of affordable housing in accordance with local conditions.

Here, I would also like to emphasize that while local city governments optimize and improve real estate policies based on local realities, they must also strengthen their efforts to ensure housing security and stick to the bottom line of housing guarantees. Besides, I'd like to share some data: from January to September this year, we have already constructed or acquired 1.48 million units (rooms) of affordable housing. By the end of the year, 4.5 million new residents and young people will be able to move into affordable housing.

Next, we will work with relevant departments to guide local governments in increasing the construction, collection and supply of affordable housing, focusing on solving the housing problems of disadvantaged groups and striving to ensure that all people have access to adequate housing.

N Video, Nanfang Metropolis Daily: 

The PBC announced a set of real estate financial policies on Sept. 24, which included measures such as lowering interest rates on existing mortgages and standardizing the down payment ratio for housing loans. Could you please introduce the progress of these policies? Thank you.

Tao Ling:

Thank you for your question. The PBC, based on its macro-prudential financial management responsibilities, has formulated and implemented financial policies to support the steady and healthy development of the real estate market. To help stabilize the real estate market and promote the establishment of a new development model, Pan Gongsheng, governor of the PBC, announced a package of five real estate financial policies at a press conference on Sept. 24. It has now been three weeks, and the social response has been positive, playing a constructive role in boosting market expectations and confidence. On Sept. 29, the PBC published the relevant policy documents on its website. Since you are all paying close attention, let me provide a more detailed introduction to the implementation and progress of these measures.

The first policy is to lower interest rates on existing mortgages. Mortgage rates affect the lives of millions of families, and lowering existing mortgage rates is a concrete measure to implement the decisions of the CPC Central Committee, take a people-centered approach to financial work and benefit people's livelihoods. Regarding progress, on Sept. 29, the PBC issued an announcement to improve the pricing mechanism for commercial personal housing loans. On the same day, the PBC guided the market interest rate pricing self-discipline mechanism to release a self-discipline initiative, and commercial banks also issued their announcements. On Oct. 12, major commercial banks published their operational guidelines. Currently, commercial banks are working around the clock to modify contracts and systems, making all necessary preparations. Most existing mortgages will be adjusted in bulk by Oct. 25, meaning individuals can check adjustment results through their lending banks' designated channels by Oct. 26. Some small- and medium-sized banks may complete adjustments slightly later, but all adjustments are expected to be completed by Oct. 31.

To make the process more convenient, the vast majority of borrowers will not need to visit bank branches. Borrowers with floating-rate mortgages do not need to submit any applications. Commercial banks will adjust these loans in bulk. This group of loans accounts for over 90% of existing mortgages. Borrowers with fixed-rate mortgages can handle the adjustments through their bank's online banking or mobile banking services without visiting bank branches. Due to the less-developed networks of some small- and medium-sized banks, borrowers who have mortgages with these banks may need to visit branches to complete the process. For more specific details, please pay attention to announcements from your respective lending banks.

Borrowers are also concerned about specific mortgage interest rates after the policy adjustments. We've seen many calculations and discussions about this in society, so let me provide a brief explanation. As you know, mortgage interest rates consist of the loan market quotation rate (LPR) plus a spread. According to policy adjustments, what is being modified is the spread. For existing mortgages with a spread greater than -30 basis points, the spread will be uniformly reduced to -30 basis points. For example, in Beijing, the lowest spread for first-time home loans was previously 55 basis points. With this adjustment, the lowest spread will be reduced to -30 basis points, meaning the mortgage rate will be reduced by 85 basis points. For second-home loans in Beijing, the lowest spread was previously 105 basis points. According to city-specific interest rate limits, the minimum spread will now be reduced to -5 basis points, resulting in a 110 basis point reduction in the mortgage rate. The reduction will be even more significant in areas outside Beijing's Fifth Ring Road.

After the adjustment of existing mortgage interest rates, how much can borrowers save? It is estimated that existing mortgage interest rates will see about a 0.5 percentage point reduction, resulting in total interest savings of approximately 150 billion yuan ($21 billion), benefiting 50 million households and 150 million residents. Commercial banks calculate that individuals and families in Beijing would see a mortgage rate of 4.4% drop to 3.55% after the adjustment. For a 1 million yuan, 25-year loan with equal principal and interest payments, the monthly payment will decrease by 469 yuan, saving over 140,000 yuan in total interest payments. Because the implementation of mortgage rate adjustments involves many operational details and varies by region and borrower type, please refer to specific policies and operational guidelines during actual processing.

The second policy unifies the minimum down payment ratio at 15% for both first and second homes. This measure aims to better support first-time homebuyers and those seeking to improve their housing situations. Since the policy's release on Sept. 24, the PBC has been guiding its branch banks nationwide, helping them adopt tailored measures based on local conditions, while working with local governments to ensure implementation. Currently, most Chinese cities have standardized the minimum down payment ratio for personal housing loans at 15%, regardless of whether the purchase is for a first or second home. Beijing, Shanghai and Shenzhen will adopt differentiated policies. Additionally, some cities have adjusted real estate market regulations, including purchase restrictions and taxes, which have bolstered market confidence and sales.

The third policy is to extend the term of two real estate financial policies. This policy aims to adjust the two policy documents issued earlier. On Sept. 29, the PBC and the NFRA jointly issued the notice for new adjustments. First, we adjusted the 16-point policy plan proposed in November 2022. According to the previous policy, property development loans and trust loans maturing within six months could be extended by one year without requiring reclassification. This policy helps stabilize housing enterprise financing and improve the financial conditions of the real estate sector. It was originally set to expire at the end of 2024. This time, we have decided to extend the policy term until the end of 2026. Second, we made some adjustments to the notice on managing commercial property loans issued in January 2024. According to this notice, the property developers with compliant operations and good prospects are allowed to use commercial property loans issued by national commercial banks to repay the loans or bonds related to real estate projects of such developers and their holding companies. This policy's expanded scope of loan usage helps bolster the financial position of housing enterprises. It was originally scheduled to expire at the end of 2024, but we have extended the policy term until the end of 2026 as well.

The fourth policy optimizes the relending policy for government-subsidized housing, which functions as a structural monetary policy tool. On May 17, the PBC announced a 300-billion-yuan relending facility for government-subsidized housing. The policy encouraged banks to issue commercial loans, and supported local state-owned enterprises in acquiring unsold completed commercial housing to be used as either sale-oriented or rental-oriented affordable housing. The primary goal of this policy is to promote the destocking of existing commercial housing. The PBC has established a special task force with the Ministry of Housing and Urban-Rural Development. Working through the urban real estate financing coordination mechanism, this task force collaborates with local governments to strengthen policy implementation. 

To better align with practical needs at the preliminary stage and to further enhance market-based incentives for banks and acquiring entities, the PBC decided to adjust and improve relevant policies. On Sept. 24, it increased its funding proportion by relending funds from 60% to 100%. This enhancement has helped further stimulate demand for existing commercial housing and accelerate destocking in the real estate market. The PBC officially issued a notice on Sept. 29, and commercial banks could begin relending applications to the PBC in October. Recently, several commercial banks have submitted applications. We believe that by working together, more progress will be made in the acquisition of existing housing stock.

The fifth policy supports the acquisition of property enterprises' land holdings. The PBC is working with relevant departments to develop new measures that allow policy and commercial banks to issue loans to qualified enterprises for acquiring housing enterprises' land inventory. The PBC will provide necessary special relending facilities to support this process. 

The PBC recently implemented various financial measures, including cuts to the reserve requirement ratio and interest rates. These monetary policies, along with the previously mentioned real estate initiatives, are expected to further strengthen market confidence and stabilize expectations.

The Poster News APP:

A meeting of the Political Bureau of the CPC Central Committee, held on Sept. 26, proposed that efforts should be made to strictly manage new commercial housing construction, optimize existing stock, and improve quality. What specific measures have been put in place to revitalize idle land stock?

Liu Guohong:

Thank you for your question. We share your concern about revitalizing idle land stock, and we are actively working on this issue. The MNR has implemented the requirements made at the meeting of the Political Bureau of the CPC Central Committee regarding strictly managing new commercial housing construction, optimizing stock, and improving quality. In terms of land supply, we have been managing new land supply while revitalizing land stock. We have guided local governments to properly control new land supply for commercial housing construction. We have temporarily suspended the supply of land for commercial housing development in cities experiencing excessively prolonged property sales cycles. In cities with relatively longer sales cycles, future land supply will be contingent upon the extent to which idle land is revitalized. Regarding the revitalization of land stock, as you've noticed, on Oct. 12, the MOF announced that special bonds could be used for land reserves. Mr. Song also provided some explanations in this regard. This policy is designed to provide financial support for local governments to revitalize idle land through acquisition. To ensure the successful implementation of this policy, we have provided guidance to local governments to help them standardize procedures and clarify standards, with a particular focus on outlining detailed procedures for land acquisition. We will prioritize the repurchase of residential and commercial land from enterprises that are unable or unwilling to proceed with development, as well as land that has not yet been developed, providing them with special bonds or other financial support. We will also work with relevant departments to set up special loans to acquire existing land stocks. This will serve as a supplement to special bonds, and the PBC will launch a special relending facility for it. Ms. Tao has previously elaborated on this issue. We will strictly control the reallocation of reclaimed land for real estate development. Such reallocations will only be allowed when there is a proven market need, and even then, the land must be allocated in an optimized and targeted manner while being kept within a certain proportion of the total reclaimed land.

Reclaiming and repurchasing idle land to revitalize the existing land stock can serve three purposes: First, it reduces the scale of existing land stock in the market and better leverages the role of land reserves as a "reservoir" and land supply regulator, which helps stabilize market expectations. Second, it increases the liquidity of funds, enabling real estate developers to pool funds for housing delivery. Third, land acquisition and reserves create prime land that can be used not only to shore up weaknesses in public service facilities, improve living conditions, and meet the housing needs of residents but also to boost the development of the real economy and effective investment.

In addition to the aforementioned measure of supporting local governments with reclaiming and purchasing idle land, there are two more approaches for putting such land into better use. First, enterprises are encouraged to enhance related development methods. For idle land that interests enterprises and meets market demand, enterprises are allowed to apply for certificates in phases, defer payments of land transfer fees and enjoy reasonable exemptions from the liability for contract breaches. These measures aim to ease the financial burden on enterprises. Second, efforts will be made to facilitate transfers of land within the market. For idle land that enterprises are unable to develop, local regions will be guided to establish trading platforms, support advanced house trading registration and property transfers with existing mortgages, as well as promote judicial disposal and joint development methods. These measures aim to boost market vitality.

This concludes my response. Thank you.

China News Service:

Nowadays, some people's demands for housing has shifted from "whether it's available" to "whether it's good." What measures will be taken next to meet the public's expectations for better housing? Thank you.

Ni Hong:

Thank you for your question. China's housing sector has entered a new stage, shifting from a focus on availability to an emphasis on quality. People now have new expectations for the functionality and quality of houses.

In my view, people have diverse opinions on what constitutes a quality house. But in general, it bears the following four features: First, a quality house should demonstrate the feature of being green. It should be conducive to people's health, with comfort and health being the most crucial features of being "green." Second, a quality house should embody low-carbon features. To me, low-carbon indicates that, over its entire lifecycle, a quality house should be cost-effective. The consumption of electricity, water and other energy in the house should not only reduce expenses for the inhabitants but also achieve energy efficiency for society as a whole. Third, a quality house should have smart technology. It should make life more convenient through the application of modern technologies and digital solutions. Take drawing the curtains as an example. In the past, we would need to get up to do this manually; but now, we can use a remote control by simply saying "Xiaodu, draw the curtains," while lying in bed. All these smart applications have enhanced convenience for inhabitants. Fourth, a quality house should be safe, providing inhabitants with peace of mind and a sense of security.

The efforts to promote the construction of quality houses includes introducing sample projects, establishing standards, developing systems and enhancing sci-tech support. The most crucial part is to apply next-generation information technology, green and low-carbon solutions, new construction methods as well as some new products, materials and techniques into housing construction. We are also working to build quality houses of various sizes and for a arrange of prices.

Here, I would like to emphasis that local regions should prioritize building government-subsidized housing into quality houses. Projects that are initiated by the government and designed to improve people's well-being must take the lead in this effort. In the meantime, we need to collaborate with the urban renewal projects and explore measures to renovate older residences into quality houses.

Seeing is believing. A few days ago, I visited a quality house sci-tech exhibition at Shougang Park in Beijing, which was hosted by the China State Construction Engineering Corporation (CSCEC). The exhibition showcased some 160 new technologies, over 130 new products and more than 70 new achievements. There was show houses for both new homes and remodeled old homes for everyone to experience. There are indeed a lot of impressive facilities, especially for those looking for a house improvement, such as height adjustable kitchen cupboard s, sensor faucets and sliding wardrobes. All of these are highly practical technologies. To sum up, quality houses should be constructed in a way that offers convenience and comfort to the people.

I would also like to emphasis that the future development of real estate and construction enterprises will center on quality, new technologies and sound services. Those who can seize the opportunity for transformation, provide the people with quality houses and offer sound services will capture a larger market share, achieve growth and secure a promising future. Thank you.

Securities Times: 

I have a question about the financial support for real estate policy. What specific policy measures will be taken by the financial department next to promote the sound growth of the real estate sector? Thank you.

Xiao Yuanqi:

Thank you for your question. In terms of facilitating the steady development of the real estate market, financial policy consists of a package of measures. In addition to my earlier introduction of efforts to further boost the financing mechanism for the urban real estate sector as well as the financial policies that were introduced by Ms. Tao, there are also a few other policies, which I will elaborate on in the following aspects.

First, we need to effectively leverage a combination of real estate financing tools, delivering integrated and large-scale effects and enhancing precision. There are many real estate financing tools available. In terms of banks, there are real estate development loans. By the end of September, the real estate development loans increased by over 400 billion yuan compared with the beginning of this year. Other types of loans include individual mortgage loans, commercial property loans, merger and acquisition loans as well as housing rental loans. The merger and acquisition loans refer to the loan support provided by banks for real estate project companies and property developers to acquire other assets. In addition, there is also bond investments. For example, financial institutions can invest in bonds issued by property developers and insurance companies can also use insurance funds for equity investments. Therefore, there are a variety of financing channels and tools available. We need to leverage the unique strengths of different financial tools, being that they are highly targeted and tailored to meet specific demands. Furthermore, in accordance with the types of property developers and real estate projects, financing efforts at different stages require individually tailored financial products, ensuring that the financing support is more targeted, timely and effective.

Second, we will collaborate with relevant government bodies to proactively explore specific supportive measures by both policy and commercial banks in putting idle land into better use. This is a set of integrated policies. As mentioned by my colleagues from the MOHURD, the MNR, the MOF and the PBC, these policies need to work in synergy to put idle land into better use. After consideration, we have allowed both policy and commercial banks to issue loans for the purchase of these idle lands at a certain proportion. The primary goal is to promote the more efficient use of these idle lands, while also improving and releasing cash flow in the real estate sector.

Third, the 16-step guideline issued by financial authorities in November, 2022 to enhance policy support for the housing sector as well as other policies concerning commercial property loans will be extended until the end of 2026. Moreover, mortgage rates for existing home loans and the down payment ratio of individual mortgage loans for both first and second homes will be adjusted. We will collaborate with the PBC to ensure the proper implementation of these measures.

Fourth, we will fully utilize financial institutions' expertise in information and financial management, offering property developers and real estate projects some specialized financial services, such as financial advisory and project design. We will assist these property developers and real estate project companies with strengthening asset liability management along with improving their financial stability and sustainability. That's all I have for now. Thank you.

Yicai:

What are the considerations for advancing the implementation of tax policies that are aligned with the cancellation of standards for ordinary and non-ordinary residential housing in the next step? Thank you.

Song Qichao:

Thanks for your question. The third plenary session of the 20th CPC Central Committee made it clear that some cities will be permitted to scrap relevant standards for ordinary and non-ordinary housing. Currently, the Ministry of Finance is stepping up its efforts to study and clarify tax policies that are aligned with the abolition of standards for ordinary and non-ordinary housing, mainly comprised of value-added tax and land value-added tax.

The current policies are as follows: In terms of value-added tax, except for the four top-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen, if an individual in other cities sells a residential property, the value-added tax is exempted after two years (inclusive) of the purchase, regardless of if it is ordinary or non-ordinary housing. In the cities of Beijing, Shanghai, Guangzhou and Shenzhen, if an individual sells ordinary residential housing, the value-added tax is exempted after two years (inclusive) of the purchase; if an individual sells non-ordinary residential housing, the value-added tax is payable after two years (inclusive) of the purchase. In terms of land value-added tax, it is exempted for constructing or selling ordinary standard residential housing with an appreciation rate of less than 20%. According to the relevant provisions of the detailed rules for implementation of provisional regulations on land value-added tax, the standards for ordinary residential housing shall be clarified by each province.

Recently, we have been making further adjustments to the mentioned tax policies. The general considerations concern three aspects.

First, both the tempo of regulating and controlling the real estate market and local fiscal revenues in relevant cities will be taken into consideration to make sound arrangements.

Second, local governments will be given certain decision-making powers to maintain the stability and fairness of policies.

Third, the burdens on real estate enterprises and homebuyers will be effectively reduced to stabilize the real estate market.

We are moving quickly on advancing relevant procedures for the introduction of specific policies and will make these policies public in a timely manner after approval. Thank you.

Shou Xiaoli:

Let's continue. Due to time constraints, last two questions.

Market News International:

Recently, major cities have reported an increase in the number of visitors to housing projects and subscriptions to real estate. What's the Ministry of Housing and Urban-Rural Development's expectation for the overall trend of housing sales in October? What follow-up policies will be introduced to stabilize the real estate market?

Ni Hong:

Thanks to this foreign media reporter. On Sept. 26, the meeting of the Political Bureau of the CPC Central Committee emphasized that it is necessary to stabilize the real estate market, releasing a positive signal. Relevant departments have introduced a series of policies and measures in the areas of fiscal, taxation and finance. Local governments have adopted city-specific policies and have canceled or reduced relevant restrictions to meet residents' demands for buying their first homes or improving their housing situations. It can be said that market confidence has been effectively boosted. Based on the market reaction, there has been a significant increase in the number of property viewings and visits in many cities and projects, and the sales volume has also increased to varying degrees. Major indicators of the real estate market have improved significantly. In particular, all the indicators in the top-tier cities have stabilized since October.

At the same time, we also see that under the effect of a series of policies, China's real estate market has begun to bottom out after three years of adjustments. You asked about the data in October. We expect that it will be a positive and optimistic result.

Concerning policies for stabilizing the real estate market, I have already made introductions at the beginning, and all departments participating in the press conference today have also introduced very valuable and practical policies. Next, we must make concerted efforts to make good use of these policies and ensure their implementation, so that these policies can fully take effect and bring benefits to the people. It can be said that we have confidence in stabilizing the real estate market. Thank you!

Shou Xiaoli:

One last question, please.

The Paper.cn:

All aspects of society are very concerned about the battle to ensure the delivery of housing. What measures has the Ministry of Housing and Urban-Rural Development taken to ensure the quality and handover of sold commercial housing that is under construction? What are the next specific measures? Thank you.

Ni Hong:

Thank you for your questions. On May 17 of this year, the State Council made arrangements for ensuring the delivery of housing. It has been exactly five months to this day. Currently, delivery of housing has been vigorously advanced in various places, with 2.46 million units of housing having been handed over, making significant progress. The efforts to ensure the delivery of housing have reassured homebuyers and notably improved market expectations. We have worked with relevant departments to conscientiously implement the decisions and arrangements of the CPC Central Committee and the State Council, adopted multiple measures to form synergy, set up a special work group and have focused on work in two aspects with other departments and units, such as financial regulatory departments, development and reform commissions, the department of finance, the department of natural resources, audit offices, public security organs, courts and banks. First, we have focused on the "white list" mechanism to address funding shortages for project construction. Second, we have focused on progress with construction and delivery. We have seen that local governments, property developers and financial institutions assume their full responsibilities, act on market-oriented and law-based principles, adopt targeted policies for each project in accordance with their specific conditions, and take a category-based approach to advance construction, so as to ensure the handover of the housing at an early date. 

For projects in normal operation, we have advanced their construction in accordance with the market-oriented and law-based principles. For insolvent projects, we have acted on the market-oriented and law-based principles to accelerate bankruptcy reorganization or liquidation, effectively safeguarding the legitimate rights and interests of homebuyers. It should be noted here that we have resolutely investigated and prosecuted those violating laws and regulations as well as harming the interests of the people. We must never let them get away without being punished.

How to advance the implementation of this work? Together with relevant departments and units, we and the National Financial Regulatory Administration have strengthened the link age of credit, land, judicial and other measures and have continued to advance the implementation of various tasks, focusing on the target of delivery. First, we have focused on progress. Through the national pre-sold homes information system, each set of pre-sold homes is registered and filed, and will be removed from the system once it is handed over to homebuyers. Second, we have focused on quality. We have taken the projects of pre-sold homes as a priority for strengthening regulation of housing quality. Houses should not only be built, but also have good quality. Houses handed over to homebuyers should have been evaluated and accepted. Third, we have focused on coordination. We have made good use of joint mechanisms consisting of special work groups at the national, provincial and municipal levels and have taken coordinated steps to solve difficulties and problems that are related to cross-regional fund withdrawal, legal and litigation issues and asset disposal of projects.

We believe that with the support of credit funds from the "white list" mechanism, as well as with full cooperation from various departments, resolute actions of local governments and active efforts of property developers, we can surely win the battle to ensure the delivery of housing and complete the task that was assigned to us by the CPC Central Committee and the State Council, so that the homebuyers can get their houses as soon as possible. Thank you.

Shou Xiaoli:

Thanks to Mr. Ni and to all the other speakers. Thanks to our friends from the media for participating. Today's briefing is hereby concluded. See you!

Ni Hong:

Thank you.

Translated and edited by Liu Sitong, Huang Shan, Yang Chuanli, Wang Qian, Chen Xinyan, Li Huiru, Wang Xingguang, Fan Junmei, Gong Yingchun, Zhu Bochen, 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 Lingjun, vice minister of the General Administration of Customs of China (GACC)

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

Chairperson:

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

Date:

Oct. 14, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we have invited Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC), to brief you on China's import and export data for the first three quarters of 2024 and to take your questions. Also attending today's press conference is Mr. Lyu Daliang, spokesperson for the GACC and director general of the Department of Statistics and Analysis of the GACC.

Now, let's give the floor to Mr. Wang for his briefing.

Wang Lingjun:

Friends from the media, good afternoon. Welcome to this afternoon's press conference. First, I will brief you on the import and export situation for the first three quarters. Afterwards, my colleague Lyu Daliang and I will answer any questions you may have.

Since the beginning of this year, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, China has achieved overall economic stability while also ensuring steady progress. New quality productive forces have been rapidly forming, high-quality development has been deeply advanced and imports and exports with goods have been steadily increasing, thus continuing the foreign trade structure's optimization. It can be said that both quantity and quality have improved. According to customs statistics, in the first three quarters, China's imports and exports amounted to 32.33 trillion yuan, a year-on-year increase of 5.3%, including exports of 18.62 trillion yuan, up by 6.2%, and imports of 13.71 trillion yuan, up by 4.1%. The main characteristics are as follows:

First, the total value of imports and exports has reached a new high, with each quarter exceeding 10 trillion yuan. For the first time in history, the total for the first three quarters surpassed 32 trillion yuan, with imports and exports for each quarter amounting to 10.15 trillion, 11 trillion and 11.17 trillion yuan, respectively. Each quarter indeed exceeded 10 trillion yuan and the three quarters together surpassed 32 trillion yuan, marking a historic first for the same period.

Second, various types of business entities have remained active, with private enterprises achieving relatively rapid growth. In the first three quarters, China's private enterprises recorded imports and exports totaling 17.78 trillion yuan, an increase of 9.4% and accounting for 55% of the total foreign trade value, which was up by 2.1 percentage points. Foreign-invested enterprises saw imports and exports of 9.53 trillion yuan, growing by 1.1% and marking growth for two consecutive quarters. State-owned enterprises saw imports and exports of 4.9 trillion yuan, with a growth of 0.1%.

Third, market diversification has steadily progressed, and trade with more than 160 countries and regions around the world has achieved growth. Imports and exports with partner countries involved in the Belt and Road Initiative (BRI) totaled 15.21 trillion yuan, which was up by 6.3%, increasing their share to 47.1%. Trade with fellow Regional Comprehensive Economic Partnership (RCEP) member countries reached 9.63 trillion yuan, growing by 4.5% and including 5.09 trillion yuan in imports and exports with ASEAN, up by 9.4%. During the same period, imports and exports with the European Union and the United States amounted to 4.18 trillion yuan and 3.59 trillion yuan, respectively, increasing by 0.9% and 4.2%.

Fourth, the structure for exporting products has been optimized, with the exporting of high-end equipment increasing by more than 40%. In the first three quarters, China's exports of mechanical and electrical products amounted to 11.03 trillion yuan, an increase of 8%, and accounted for 59.3% of the total export value. Among these, high-end equipment exports grew by 43.4%, with integrated circuits, automobiles and household appliances experiencing export increases of 22%, 22.5% and 15.5%, respectively. Additionally, exports of traditional labor-intensive products totaled 3.13 trillion yuan, up by 2.8%.

Fifth, the abundance and variety of imported products have improved, with a stable rise in the volume of bulk commodity imports. In the first three quarters, China's import volume of bulk commodities increased by 5%. Among these, energy products such as crude oil, natural gas and coal totaled 901 million tons, up by 4.8%; metal ores such as iron and aluminum amounted to 1.138 billion tons, increasing by 4.9%. During the same period, the import values for integrated circuits and automobile parts grew by 13.5% and 4.6%, respectively. Imports of consumer goods exceeded 1.3 trillion yuan.

Overall, in the first three quarters, China's foreign trade operated generally stable, with both exports and imports achieving growth. The current domestic and international environments are increasingly complex and China's foreign trade development faces certain challenges. These primarily include intensified global trade protectionism, weak growth momentum in major markets, heavy debt burdens and an increase in uncertain and unstable factors. However, it is also important to recognize that China's economic fundamentals, along with its broad market, strong resilience and great potential, have remained unchanged. The continued implementation of existing policies and the introduction of incremental policies are gaining momentum, while the positive factors for foreign trade development are accumulating and increasing. Thus, there is a solid foundation and support for steady growth with imports and exports in the fourth quarter.

The GACC will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, focusing on the decisions and arrangements made at the third plenary session of the 20th CPC Central Committee. With the aim to promote Smart Customs and thereby strengthen our country, we will further deepen comprehensive reforms in customs, continuously innovate the regulatory service system, optimize the business environment at ports and promote the facilitation of cross-border trade. In response to new situations and challenges in current foreign trade operations, we will follow the decisions and arrangements made at the meeting of the Political Bureau of the CPC Central Committee on Sept. 26, adhere to a problem-oriented approach, focus on key issues, take proactive initiatives, effectively implement existing policies, intensify the introduction of incremental policies, further enhance the pertinence and effectiveness of policy measures, stabilize the volume and improve the quality of foreign trade and contribute to completing the annual goals for socioeconomic development. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang, for your introduction. We will now open the floor for questions.

CCTV News:

According to recently released customs statistics, China's imports and exports maintained stable growth in the first three quarters of this year. What are the main factors driving this growth? Additionally, could you analyze and interpret the expected trends in China's foreign trade for the fourth quarter? Thank you.

Wang Lingjun:

Thank you for your question. Since the beginning of this year, China's imports and exports have maintained stable growth due to both supply and demand factors.

On the demand side, internationally, the World Trade Organization's latest report has raised its forecast for annual global merchandise trade volume growth. Institutions such as the World Bank and the Organization for Economic Cooperation and Development believe the global economy is stabilizing, and recovering external demand has created favorable conditions for China's exports. In the first three quarters, China's exports to traditional markets — Europe, the U.S. and Japan — grew by 4.2%, while exports to emerging markets like ASEAN and Latin America increased by 12.3% and 13.7%, respectively. Domestically, China's industrial production has grown steadily since the start of this year, driving increases in imports of coal (11.9%), natural gas (13%) and iron ore (4.9%) in the first three quarters. With the cyclical upturn in consumer electronics, imports of semiconductor manufacturing equipment, integrated circuits and flat-panel display modules all achieved double-digit growth. The consumer market has maintained steady growth, with imports of specialty fruits, wine and clothing rising by 7.1%, 28.9% and 6.1%, respectively, effectively meeting diverse domestic consumer demands.

On the supply side, China is accelerating the development of new quality productive forces, with manufacturing trending notably toward higher-end, smarter and greener production. Innovation has made Chinese manufacturing increasingly attractive globally. Regarding high-end development, Chinese manufacturing has demonstrated solid capabilities. For instance, we recently exported the world's largest floating oil-gas production, storage and offloading platform, priced above 10 billion yuan, with a displacement equivalent to five aircraft carriers — representing the pinnacle of global marine engineering. In terms of smart manufacturing, products like all-in-one robotic vacuum cleaners and automatic coffee machines capable of brewing more than a dozen flavors have gained popularity with overseas customers. Home appliance exports increased by 15.5% in the first three quarters. On the environmental front, China's new energy industry has effectively aligned with global green development trends, with exports of wind turbine generator systems and electric vehicles rising by 73.9% and 22%, respectively.

Regarding future trends, with three months remaining in the year, the external environment has grown increasingly complex and challenging. The latest International Monetary Fund report indicates that global economic growth rates have fallen below the average levels seen in the first two decades of this century. Major economies are struggling to maintain sustained growth momentum, with both the Federal Reserve and European Central Bank lowering their respective economic growth forecasts by 0.1 percentage point in September. Additionally, some countries have increasingly imposed trade restrictions on Chinese products. Recent fluctuations in key domestic economic indicators — including industrial output, investment and consumption — have added pressure to foreign trade development. However, the fundamentals of China's economic development remain solid, with favorable conditions such as vast market potential and strong economic resilience continuing unchanged. Moreover, you may have noticed that various departments and regions are actively implementing decisions and arrangements made at the CPC Central Committee Political Bureau meetings. They're introducing a new package of incremental policies to support the healthy development of the real economy and business entities. With these coordinated policy efforts, China's economy is expected to maintain its stable upward trajectory toward higher-quality growth. We have both the necessary conditions and confidence to achieve our annual objectives of steady trade volume growth and quality improvement. Thank you.

21st Century Business Herald:

How has the recent weakening in international market demand affected China's exports? Could you share details about China's export performance in September? What are the GACC's expectations for export trends in the fourth quarter? Thank you.

Lyu Daliang:

Good afternoon. Thank you for those questions. First, let me brief you on our export performance for September.

In September, China's exports totaled 2.17 trillion yuan, a year-on-year increase of 1.6%. The growth rate has indeed slowed down, and preliminary analysis suggests this is mainly due to some short-term, sporadic factors. First, there's a connection to the extreme weather in September. Two typhoons made landfall in the Yangtze River Delta, and historical data shows that typhoons' impact on exports tends to last for a considerable time. After a typhoon, shipping schedules often get delayed, leading to a lag in exports. Second, recent issues like global shipping disruptions, a container shortage, and expectations regarding contract negotiations for dockworkers on the U.S. East Coast have caused companies to adjust their shipping and logistics rhythms. According to data, the peak season for export of certain products, which usually came in the third quarter in previous years, was more than a month earlier this year. Additionally, the export scale in September of last year was relatively high, the second highest of the year, only second to December. This high base also constrained the year-on-year growth rate for September this year. Overall, the September slowdown in export growth is considered a typical short-term data fluctuation.

Looking at the overall trend for the first three quarters, exports in September marked the sixth consecutive month of growth. Cumulative exports reached 18.62 trillion yuan, setting a historical high for the same period, with a year-on-year increase of 6.2%. This growth rate is 0.5 percentage point higher than the average for the same period over the past decade. Preliminary estimates based on the latest data published by various economies indicate that China's overall export share in the global market is steadily rising. Key export products, from furniture and home appliances to ships and containers, have all seen varying degrees of increased global market share, showcasing China's strong resilience in exports.

Currently, China is accelerating the construction of a modern industrial system and developing new quality productive forces tailored to local conditions. The country maintains a solid advantage with a strong manufacturing base, a complete range of industries, and a large-scale industrial system, which continues to consolidate its position in the global industrial and supply chain landscape. Recent surveys of over 800 major export enterprises across the country show that 69% of them anticipate stable or growing exports in the fourth quarter. Overall, we maintain a positive outlook for exports in the fourth quarter. Thank you.

Kyodo News:

China shows a trend of excessive trade surplus again, raising concerns in some countries. What are the reasons for such excessive surpluses? Any comment on the concerns of these countries? Thank you.

Wang Lingjun:

Thank you for your questions. China never intentionally pursues a trade surplus. The recent growth in our goods trade surplus results from the improved competitiveness of Chinese industries, resilient exports, and lower import values due to declining global commodity prices. Our perspective on trade surpluses is as follows:

First, when evaluating a trade surplus, it's important to consider not only the absolute scale but also the relative proportion of the surplus to GDP. Vertically, our current ratio is below China's historical peak. Horizontally, it's also lower than that of some major global economies.

Second, evaluating a country's trade balance requires examining both the goods and services trade, as well as trade statistics and international balance of payments data. According to the latest balance of payments data from the State Administration of Foreign Exchange, our current account surplus is 1.1% of GDP, remaining within a reasonable and balanced range.

Additionally, I'd like to point out that it's perplexing how some countries criticize China's trade surplus while simultaneously imposing stricter regulatory measures to limit their exports to us. Thank you!

National Business Daily:

This year, the BRICS cooperation mechanism expanded for the first time, with the number of BRICS member countries increasing to 10. Could you please introduce China's import and export situation with its BRICS partners and the main achievements of the BRICS cooperation mechanism? Thank you.

Wang Lingjun:

Thank you for your question. The BRICS cooperation mechanism is an important platform for emerging market countries and developing nations to strengthen solidarity and cooperation and safeguard common interests. On Jan. 1 this year, five new partners joined the BRICS family. Following this expansion, BRICS countries now account for over one-fifth of the global trade, significantly boosting their international influence. In the first three quarters of this year, China's imports and exports with other BRICS countries reached 4.62 trillion yuan, growing by 5.1%. Embracing the BRICS spirit of openness, inclusiveness and win-win cooperation, trade within the BRICS family continues to achieve new and positive outcomes.

In the industrial sector, China and other BRICS countries have fully leveraged their comparative advantages in intermediate goods, complementing each other in basic industries such as steel, chemicals and textiles. In the first three quarters, China's exports of steel products and textile materials to other BRICS countries increased by 8.6% and 13.4%, respectively. China's imports of metal ores and methanol from other BRICS countries rose by 14.4% and 34.3%, respectively. Simultaneously, China's robust manufacturing system and technological strengths have contributed to the development of emerging industries in other BRICS countries. During this period, China saw double-digit growths in exports of various intermediate goods to other BRICS members, such as integrated circuits, panel display modules, and aircraft components.

In agriculture, China and other BRICS countries have met each other's diverse needs with competitive products. BRICS nations supplied over 80% of China's imported poultry meat and frozen cod, as well as more than half of its imported crabs. Meanwhile, China's exports of garlic, tomatoes, citrus and other fruits and vegetables have been well received in BRICS markets, with their exports all growing by more than 20% in the first three quarters. China and other BRICS countries have also seen frequent trade in agricultural machinery and materials. In the first three quarters, China's exports of combine harvesters, insecticides and herbicides to other BRICS members all increased by over 20%, supporting local agricultural production and development. More than one-third of China's imported potassium chloride fertilizer came from other BRICS countries, playing a positive role in promoting domestic agricultural production.

Moreover, bilateral trade has served as a platform and conduit for cooperation and exchange in other sectors. China saw rapid growth in both its exports of traditional Chinese medicine to other BRICS countries and its imports of coffee and cocoa products from them in the first three quarters, helping to promote multicultural exchanges.

This year marks the first year of BRICS expansion, with the first post-expansion summit set to take place soon. Looking ahead, as the scope of greater BRICS cooperation broadens and deepens, China's economic and trade collaboration with other BRICS countries will continue to make steady and solid progress. Thank you.

ThePaper.cn:

Data shows that China's import growth has slowed in recent months. Does this reflect weak domestic demand? Can you provide details on September's import performance? What are your expectations for import trends for the full year? Thank you.

Lyu Daliang:

Thank you for your questions. As Mr. Wang just mentioned, China's imports totaled 13.71 trillion yuan in the first three quarters, a 4.1% year-on-year increase, reaching a historic high for the same period. While the monthly year-on-year growth rates fluctuated this year, import volumes rose quarter by quarter, with each quarter showing positive year-on-year growth. Additionally, China's import sources have remained diverse and stable, with imports from over 140 countries and regions across six continents experiencing growth. Specifically, imports from Europe and the U.S. increased by 1.2% and 2.7%, respectively, while imports from ASEAN, Latin America and Africa grew by 5.4%, 5.3% and 10.3%, respectively.

As for imports in September, looking solely at the numbers, the year-on-year growth rate in yuan terms slowed, influenced by factors such as import prices and exchange rate fluctuations. However, in terms of scale, the volume of imports has expanded month on month since July, with September marking the highest point this year — a 2% increase from August. In terms of quantity, September imports grew by 0.7% year on year. Notably, coal, natural gas, and integrated circuits all saw double-digit growths, increasing by 13%, 19%, and 17%, respectively. This reflects a sustained recovery in domestic demand. Moreover, when measured in U.S. dollars, imports showed a slight uptick in September.

China has steadfastly advanced high-level opening up and proactively expanded imports. The third plenary session of the 20th CPC Central Committee emphasized that "we will seize the initiative by opening China's commodity, services, capital, and labor markets wider to the outside world in an orderly manner and unilaterally opening our doors wider to the world's least developed countries." At the 2024 Summit of the Forum on China-Africa Cooperation held in Beijing on Sept. 5, President Xi Jinping announced that China had decided to give all least developed countries (LDCs) with diplomatic ties to China zero-tariff treatment on all tariff lines, making China the first developing country and major economy in the world to implement this initiative. In the first three quarters of this year, China's imports from LDCs increased by 14%. As this decision is materialized, China's imports from these nations will continue to expand. Next month, the 7th China International Import Expo (CIIE) will be held in Shanghai. The growing success of the CIIE continues to demonstrate China's commitment to greater opening up while providing more countries with opportunities to benefit from China's vast market. Thank you. 

Bloomberg:

Two questions on tariffs. The first one is you've seen increased amounts of countries putting tariffs on the "new three," of solar panels, batteries and EVs — such as Türkiye's EV tariffs in June. What impacts are those measures having on those industries? And secondly, does China worry that increased steel exports will further inflame trade tensions? Thank you.

Lyu Daliang:

Thank you for your questions. You mentioned two topics: the "new trio" (electric vehicles, lithium-ion batteries and photovoltaic products) and steel. Let me first address your question about the "new trio." I will start by sharing some details about the export situation of the "new trio."

In the first three quarters, China exported 757.83 billion yuan worth of electric vehicles, lithium-ion batteries and photovoltaic products, accounting for 4.1% of China's total exports. The "new trio" are exported to more than 200 countries and regions, and are popular globally.

We believe that the global new energy industry is still currently in a phase of rapid development. China's exports of the "new trio" and other green, low-carbon products have not only enriched global supply and alleviated global inflationary pressures, but also made a significant contribution to addressing climate change and promoting green transformation worldwide. Indeed, some countries have imposed tariffs on China's "new trio," but we consider this to be an unfair and unreasonable form of trade protectionism that violates international trade rules, that will ultimately hinder the global green and low-carbon transformation. Some American scholars have even called the tariffs on China's green technology products a "foolish mistake." We hope that relevant countries will abandon these wrong practices, seek their own justified interests through common development, and open up new sources of growth for the global economy while jointly addressing the global challenge of climate change.

As for steel exports, I will also provide some data. In the first three quarters, China exported 441.94 billion yuan worth of steel, down by 3% year on year. I also want to clarify that most of the steel produced in China is for domestic consumption and use, including further processing, mainly to meet the demand of the domestic market.

Here, I'd like to share that although the steel industry is a traditional one, in the context of China's accelerated development of new quality productive forces, the steel industry is constantly innovating and upgrading. A few days ago, I visited a steel plant in Taiyuan where they developed stainless steel foil with a thickness of just 0.015 millimeters — about one-quarter the thickness of a sheet of A4 paper — also known as the hotly discussed "hand-torn steel" online. This type of steel is widely used in precision manufacturing industries, and the company reports good order volumes. There are many such steel enterprises in China, and I believe that such innovative steel products will have a broad market both domestically and internationally. Thank you.

China News Service:

In August, the Political Bureau of the CPC Central Committee reviewed the "Policies and Measures to Open Up a New Vista in the Large-scale Development of China's Western Region." Could you please share the foreign trade situation in the western region during the first three quarters of this year? Thank you.

Lyu Daliang:

Thank you for your question. Under the promotion of the coordinated regional development strategy, the western region has adhered to the principle of promoting opening-up through greater openness, and its level of opening-up continues to improve. In the first three quarters of this year, the western region's imports and exports totaled 2.92 trillion yuan, up by 8.9% year on year, showing many positive changes.

First, the growth rate of imports and exports was the highest among all regions. Since the CPC Central Committee made arrangements in 2020 to open up a new vista in the large-scale development of China's western region in the new era, the western region's foreign trade volume has increased significantly, with the annual import and export value surpassing 3 trillion yuan and moving toward 4 trillion yuan, with an average annual growth rate of 8.5%. In the first three quarters of this year, the growth rate of the western region's foreign trade was 3.6 percentage points higher than the national average, and its share of the national import and export total increased to 9%.

Second, the foreign trade industry continued to improve in terms of quality and sophistication. In the first three quarters, the western region exported 1.18 trillion yuan worth of mechanical and electrical products, up by 13.3% year on year, and higher than the national growth rate for similar products. Among them, exports of computers and their components, as well as integrated circuits, grew by 6.7% and 27.2%, respectively, accounting for 30% and 22.7% of the national export value of these products. The western region's exports of the "new trio" grew by 7.9%, and exports of specialized high-tech equipment increased by 32.6%.

Third, business entities have shown strong vitality. In the first three quarters, 36,000 foreign trade enterprises in the western region registered concrete activities in import and export, an increase of 14.6%. Among them, private enterprises performed particularly well, with imports and exports reaching 1.61 trillion yuan, a growth of 12.8% and accounting for 55.4% of the total import and export value in the western region during the same period. Meanwhile, foreign-invested enterprises in the western region saw their imports and exports grow by 9%, a growth rate that also leads other regions.

Fourth, the construction of a new trade corridor is creating a high-speed route for foreign trade. The construction of the New International Land-Sea Trade Corridor has promoted the development and opening-up of regions along its route. In the first three quarters, the western region achieved 513.79 billion yuan in imports and exports through the new corridor, a growth of 15%. This new corridor that crosses mountains and seas is not only a convenient and efficient logistics artery, but also is a vibrant economic and trade corridor.

In August of this year, the Political Bureau of the Party Central Committee deliberated the Policy Measures to Further Open up a New Vista in the Large-scale Development of the Western Region, which has provided direction and set clear requirements for the next steps. The customs authorities will conscientiously implement relevant work arrangements of the Party Central Committee and the State Council, fully support the construction of the New International Land-Sea Trade Corridor, further promote the development of characteristic and advantageous industries in the western region and advance the construction of open platforms, continuously driving high-quality development and high-level opening-up of the western region. Thank you!

Cover News:

In the recent two years, private enterprises in China have seen rapid growth with their imports and exports. Could you elaborate on the characteristics and highlights of private enterprises' imports and exports in the first three quarters of this year? How will customs help private enterprises with participating in international competition in the future? Thank you.

Wang Lingjun:

Thank you for your questions. The Party Central Committee always unswervingly consolidates and develops the public sector, and unswervingly encourages, supports and guides the development of the non-public sector. The Party Central Committee always maintains that the non-public sector's status and functions in the country's economic and social development have not changed, the principle and policies to unswervingly encourage, support and guide the development of the sector have not changed, and the principle and policies to provide a sound environment and more opportunities to the sector have not changed. These commitments have created a favorable environment for the development of private enterprises and promoted the sustainable and healthy development of the private economy. In the first three quarters, China's private enterprises achieved 17.78 trillion yuan in imports and exports, a growth of 9.4%, which is 4.1 percentage points higher than the national rate, contributing 93.8% to the overall growth of foreign trade. The flexible and adaptable operating characteristics of private enterprises, along with their growing strength in foreign trade, continue to inject new vitality into the development of foreign trade. Here, I would like to share three impressions of private enterprises:

First, they are bold and determined. Private enterprises are a strong force in expanding markets and securing orders, playing an important role in promoting market diversification. In the first three quarters, private enterprises' imports and exports to ASEAN, Africa and Latin America grew by 12%, 6.4% and 13.9%, respectively, with their shares in China's trade with these regions rising to 62%, 61.1% and 54.2%, respectively.

Second, they are innovative. Since the beginning of this year, private enterprises have accelerated equipment upgrades, constantly positioning themselves for innovation. In the first three quarters, private enterprises imported 203.82 billion yuan worth of various production equipment, a growth of 31%, accounting for 51.6% of China's imports for similar products. Among these, semiconductor manufacturing equipment and high-end machine tools accounted for 67.9% and 43.7% of China's imports of such products, respectively. This momentum of innovation has also translated into export power, with private enterprises' exports of high-tech products growing by 14% in the first three quarters, making up 52.7% of China's high-tech product exports, a 4.4 percentage point increase. Exports of ships and marine engineering equipment, aerospace equipment and electronic information products grew by 94%, 37.2% and 17.5%, respectively.

Third, they have always strived to do better. In recent years, private enterprises have gradually evolved from "producers" to "brand owners." In the first three quarters, private enterprises' exports of solar cells, lithium batteries and textile machinery consisted of 83.4%, 71.7% and 57.6% of their own brands, respectively. While focusing on brand building, private enterprises have also been committed to integrity. In the first three quarters, 2,411 private enterprises obtained AEO certification, the highest form of customs certification. With this "golden business card," private enterprises are set to reach even broader stages within foreign trade development.

The Party Central Committee and the State Council have always been committed to creating a favorable environment and providing more opportunities for the development of the private economy. Last week, a draft law on the promotion of the private economy was opened for public comment. We are closely monitoring changes in the situation, visiting enterprises to deliver policies, listening to feedbacks and solving problems. We are also studying and preparing a new round of practical and effective policy measures to be introduced at an appropriate time. Through improved regulatory efficiency and service standards, we will help enterprises stabilize expectations, expand markets and boost confidence. Thank you!

China Financial and Economic News:

My question concerns the China International Import Expo (CIIE). We know that the 7th CIIE will be held in Shanghai from Nov. 5-10. Could you please explain what measures the GACC has implemented to ensure the expo's success? Thank you.

Lyu Daliang:

Thank you for your question. At this time each year, significant attention is focused on the CIIE. Three weeks ago, the first exhibit of this year's expo — an electric concept tricycle — successfully cleared customs at Shanghai port, marking customs' entry into the "final preparation phase." To date, customs offices nationwide have completed clearance procedures for 18 batches of exhibits, making the process more streamlined and efficient.

In fact, customs began its CIIE preparations as early as April this year. We have analyzed our experience from supporting previous expos and developed a more comprehensive work plan for the 7th CIIE. Building upon our existing 17 facilitation measures, we've introduced new initiatives. For animal- and plant-derived food products, we've waived the requirement for sanitary or animal and plant quarantine certificates, provided that animal and plant disease transmission risks have been eliminated. This change enables a broader range and greater variety of exhibits. We're also providing end-to-end guidance and customized services for participating enterprises, and we've enhanced our "Smart CIIE" system to create a more efficient, convenient and rapid supervision process for incoming exhibits.

The CIIE is held annually, yet this year's expo features an array of cutting-edge technologies and first-time exhibits that keep the event fresh. These include photocatalytic coatings representing the forefront of material science, smart road-marking paints, non-pneumatic tires for lunar rovers designed for extreme conditions, and direct air capture technology for green emission reductions. These innovations will further enhance the expo's reputation for product debuts. Moreover, the CIIE is not only a "feast for the eyes" but also a "golden gateway" to China's vast market. A standout exhibit, the 150-kilogram Maltese bluefin tuna, represents the first batch approved for import to China and will soon enter the Chinese market with customs support.

Next, customs will continue to align with the needs of the expo, maintaining a firm commitment to safety while ensuring high-level, high-standard, and high-quality support for all customs-related tasks. We aim to facilitate the participation of both new and returning friends from around the world in the CIIE, allowing them to share in the opportunities that China presents. Thank you!

Nanfang Daily, Nanfang Plus:

In recent years, ASEAN has consistently maintained its position as China's largest trading partner. Could you please share information about the trade performance between China and ASEAN since the beginning of this year? Thank you.

Wang Lingjun:

Thank you for your question. In the first three quarters of this year, China's trade with ASEAN reached 5.09 trillion yuan, growing by 9.4%, which is 4.1 percentage points higher than the national growth rate. Of this total, exports amounted to 3.02 trillion yuan, up 12.3%, while imports reached 2.07 trillion yuan, increasing by 5.4%. The continued positive development of China-ASEAN trade can be attributed to several key factors:

First, the large markets on both sides provide strong support for bilateral trade development. The practical cooperation between China and ASEAN continues to deepen, and they have been each other's largest trading partners for four consecutive years. Last week, at the 27th China-ASEAN Summit, Chinese Premier Li Qiang emphasized that "strengthening market connectivity is an important direction for further cooperation. "Looking ahead, the signing and implementation of the Version 3.0 China-ASEAN Free Trade Agreement will provide stronger momentum for jointly building an enormous market.

Second, multi-dimensional connectivity makes trade exchanges more convenient and efficient. Land ports are bustling with activity; in the first three quarters, imports and exports through Friendship Pass — the largest land port between China and Vietnam — reached 336.34 billion yuan, up 15.6%. As smart port construction advances between China and Vietnam, more digital and intelligent technologies will accelerate bilateral trade. Railway channels continue to show strong performance, with cargo volume through the China-Laos Railway reaching 3.766 million metric tons, a 15% increase, while the trade value grew by 50.7%. Waterway routes are expanding, with Beibu Gulf Port now operating 35 routes to ASEAN countries, with its ASEAN trade volume up 12.8%.

Furthermore, deepening cooperation within the industrial chain has led to rapid growth in the import and export of intermediate goods. China has established close cooperation with ASEAN countries in sectors such as electronics, automobile manufacturing, and textiles and apparel, leading to continuous expansion of intermediate goods trade. In the first three quarters, China's import and export of intermediate goods with ASEAN reached 3.23 trillion yuan, representing nearly 60% of the total trade volume of 5.09 trillion yuan, marking a 9% increase. Specifically, the import and export of electronic intermediate goods, such as computer peripherals, flat-panel display modules and integrated circuits grew by 63.9%, 22.2% and 13%, respectively.

Lastly, complementary advantages in consumer goods provide a wider choice of specialty agricultural products. In the first three quarters, China imported agricultural products worth 184.83 billion yuan from ASEAN, making it the second largest source of agricultural imports for China. Newly added items this year, such as fresh durians from Malaysia, aquatic products from Brunei and coconuts from Vietnam, further enriched domestic consumption choices. Meanwhile, ASEAN stands as the largest export market for Chinese agricultural products, with Chinese fruits like oranges and pears, as well as vegetables like garlic and onions, being well-received in ASEAN markets. China's exports of dried and fresh fruits and vegetables to ASEAN grew by 18.4% and 15.5% respectively in the first three quarters. Thank you.

Shou Xiaoli:

Due to time constraints, we only have time for two final questions.

Haibao News:

Through your introduction just now, we learned that China's foreign trade with countries of the Belt and Road Initiative (BRI) in the first three quarters has maintained a positive momentum. What highlights have emerged during this period? And what efforts has China Customs made in promoting the BRI? Thank you.

Lyu Daliang:

Thank you for your questions. With the solid advancement of high-quality Belt and Road cooperation, China and its partner countries share opportunities and develop together. A series of landmark projects and "small yet exquisite" livelihood projects are contributing to the development of relevant countries, bringing convenience to local people. In the first three quarters of this year, China's imports and exports with BRI partner countries reached 15.21 trillion yuan, a year-on-year increase of 6.3%, with growth higher than the overall rate. Among them, exports reached 8.49 trillion yuan, up 7.1%; and imports reached 6.72 trillion yuan, up 5.3%.

In terms of exports, in the first three quarters of this year, China saw a 16.6% increase in the export of small generators to Latin American countries within the BRI. Exports of wind turbines to Africa grew by 130%, while road construction machinery such as bulldozers and road rollers increased by 44.8%. This all contributed to the improvement of infrastructure in partner countries. Furthermore, exports of MRI machines to Southeast Asian countries within the BRI surged by 44%, and vaccine exports to Africa by 30%, aiding in the improvement of public health standards. Exports of passenger cars and motorcycles to Eastern European countries within the BRI increased by 34.6% and 37.9%, respectively, facilitating local transportation and meeting people's demands for better lives.

In terms of imports, during the same period, China saw imports of central processing components from Southeast Asian countries within the BRI grow by over 80%, and imports of automotive parts from Eastern Europe rise by 48.2%. The bilateral industry chain cooperation has been enhanced. At the same time, specialty agricultural products from partner countries have rapidly entered the Chinese market. Imports of kiwis, apples and other dried and fresh fruits and nuts from countries in Oceania within the BRI surged by 28.4%, while imports of soybeans, barley, sorghum and other grains from Latin America increased by 32.5%. These developments not only benefit producers in various countries but also enrich domestic supplies.

Since the beginning of this year, the GACC has been actively implementing the eight major steps to support high-quality Belt and Road cooperation. These efforts have focused on three areas: First, we have intensified our efforts to ensure market access for agri-food products from Belt and Road partner countries, finalizing 66 protocols on agricultural products and food, as well as 11 technical cooperation agreements on animal and plant inspection and quarantine. Second, we have been working hard to facilitate trade and ensure security with Belt and Road partner countries. We have convened multi-level customs clearance coordination mechanism meetings with Vietnam, Russia and Kazakhstan. We have also adjusted and optimized port operating hours, improved border infrastructure, and accelerated construction of "green lanes" for fast customs clearance of agricultural products. These measures have significantly improved connectivity. Third, we have been working hard to promote pragmatic cooperation with relevant departments in Belt and Road partner countries. We signed authorized economic operator (AEO) mutual recognition agreements with Burundi, Morocco, Tanzania and the Democratic Republic of the Congo, and signed "single window" collaboration agreements with Malaysia and Russia. Moreover, we have also reached an agreement with Serbia on mutual administrative assistance in customs matters, which has boosted bilateral economic and trade growth. Thank you. 

Shou Xiaoli:

We will take one last question, please.

Jinan Times App:

Cross-border e-commerce has been a consistent focus of the government's work report for 11 consecutive years, driving significant growth in foreign trade. How has the import and export of cross-border e-commerce performed in the first three quarters of this year? What efforts has the GACC made to promote the healthy development of the cross-border e-commerce? Thank you. 

Lyu Daliang:

Thank you for your questions. The import and export data of cross-border e-commerce has been a subject of great interest. According to China's cross-border e-commerce statistical survey system, statistical surveys for cross-border e-commerce sector are conducted twice a year, in the form of semi-annual and annual reports. The statistical survey for the first half of this year has just concluded. I would like to share the data for the first half of the year.

In the first half of the year, China's cross-border e-commerce trade reached 1.25 trillion yuan, an increase of 13% year on year, representing a record high compared with the same period in previous years. It made up 5.9% of China's total import and export value, up 0.4 percentage point from the first half of 2023. Exports increased by 18.7% to around 979.9 billion yuan, while imports dropped by 3.9% to 266.4 billion yuan. In terms of export destination and source of imports, exports to the United States accounted for 34.2%, followed by the United Kingdom at 8.1%, Germany at 6.2% and France at 4.5%. Exports to Asian markets such as Malaysia, Singapore, Thailand, Vietnam and Japan were also very vibrant. Imports from the United States accounted for 16.7%, followed by Australia at 11.3%, and Japan at 10.6%. Germany, France and New Zealand were also major sources of imports.

In terms of commodity structure, apparel, shoes and jewelry were the top export, making up 27.3% of the total. Exports of electronics like cellphones stood at 14.4%, and exports of products like home textiles was 12.4%. When it comes to imports, the share of beauty and personal care products was 28.8%, while fresh food accounted for 25.2%. Geographically speaking, top exporters were Guangdong, Zhejiang, Fujian and Jiangsu provinces, while major importers were Guangdong, Jiangsu, Zhejiang, Shanghai and Beijing.

To supplement the biannual statistical survey on cross-border e-commerce, we conduct preliminary estimates every month to track the latest trade developments. According to the latest preliminary estimates, China's cross-border e-commerce trade reached 1.88 trillion yuan in the first three quarters, representing an 11.5% increase year on year. Exports accounted for 1.48 trillion yuan, up 15.2%, while imports totaled 399.16 billion yuan, down 0.4%.

In recent years, the GACC has been at the forefront of supporting the development of cross-border e-commerce and other new business formats. In June, the GACC and relevant departments jointly released guidelines on expanding cross-border e-commerce exports and advancing the construction of overseas warehouses. Customs authorities nationwide have been committed to implementing relevant policies and measures. We have been promoting the practice of paperless customs declarations for overseas warehouses, strengthening intellectual property rights protection, and deepening the comprehensive reform of cross-border e-commerce. By doing all this, we aim to foster collaboration and joint governance between customs authorities and cross-border e-commerce platforms, so as to promote the high-quality development of cross-border e-commerce. Thank you. 

Shou Xiaoli:

Thank you to our speakers, and thank you to all the reporters for your participation. That concludes today's press conference. Goodbye. 

Translated and edited by Zhang Rui, Li Xiao, Wang Xingguang, Xu Xiaoxuan, Mi Xingang, Xiang Bin, Yang Chuanli, Chen Xinyan, Gong Yingchun, Liu Sitong, Wang Qian, Wang Wei, Wang Yiming, Yuan Fang, Huang Shan, 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.

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Read in Chinese

Speakers:

Mr. Luo Wen, minister of the State Administration for Market Regulation

Mr. Wang Jiangping, vice minister of industry and information technology

Mr. Hu Weilie, vice minister of justice

Ms. Cong Lin, vice minister of the National Financial Regulatory Administration

Chairperson:

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

Date:

Oct. 14, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning! Welcome to today's press conference organized by the State Council Information Office (SCIO). We are delighted to have Mr. Luo Wen, minister of the State Administration for Market Regulation (SAMR), to brief you on efforts to step up support for enterprises, and to answer your questions. We are also joined today by Mr. Wang Jiangping, vice minister of industry and information technology; Mr. Hu Weilie, vice minister of justice; and Ms. Cong Lin, vice minister of the National Financial Regulatory Administration (NFRA).

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

Luo Wen:

Good morning, everyone. On Sept. 26, the Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting to outline a comprehensive package of incremental policies for the next stage of economic development. On Sept. 29, the State Council convened for a special meeting to discuss how these policies would be implemented. The decisions made by the CPC Central Committee and the State Council clearly demonstrate their dedication to addressing the concerns of businesses and invigorating the vitality of market entities. In line with these directives, I, along with my colleagues from the Ministry of Industry and Information Technology (MIIT), the Ministry of Justice (MOJ) and the NFRA, will present the specific policies and measures our departments have formulated to support businesses. We will also answer your questions. Let me elaborate on six key areas.

First, we will provide targeted support to various business entities. We aim to address the practical challenges faced by small and micro enterprises in their daily operations and continue to intensify targeted assistance for self-employed individuals. Efforts will be made to promote the coordinated development of platform companies and the businesses they host. We will soon introduce specific measures to guide platform companies in leveraging their user base for positive outcomes and in supporting the development of small and micro enterprises. Furthermore, we will actively help small and medium-sized enterprises (SMEs) that possess competitive advantages to enhance their capabilities for innovation and specialization, accelerating the high-quality development of innovative SMEs that use special and sophisticated technologies to produce novel and unique products, as well as "little giant" enterprises with high growth potential.

Second, we will effectively and significantly alleviate the burdens that businesses face. We are committed to reducing the cost of systemic transactions by advancing reforms designed to streamline how tasks are completed—from a cumbersome process requiring multiple locations, windows and visits to a simplified one that can be accomplished in a single location through a single window and in one visit. Special efforts will be made to lighten the load on businesses by focusing on both key entities that charge fees as well as critical industry sectors. This includes conducting targeted inspections and random checks on improper fee collection from businesses as well as expediting the process of refunding these fees to provide immediate financial relief to businesses. Moreover, we are dedicated to enhancing the ongoing regulatory mechanisms related to business fees, advocating for the revision of regulations that ensure timely payments to SMEs and rigorously protecting the legitimate rights and interests of businesses.

Third, we will foster a fair, competitive market environment. In response to local protectionism and market segmentation, we will roll out and implement more rigid and enforceable institutional measures. We will accelerate the revision of the Anti-Unfair Competition Law to prevent and deter unfair competitive practices. We are also committed to robustly enforcing the Fair Competition Review Regulations, eliminating policies and measures that undermine a unified market and fair competition. This will further unleash the potential of China's vast market scale. Additionally, we will intensively manage market order, specifically targeting illegal activities such as intellectual property infringement, the misappropriation of trade secrets as well as the production and sale of counterfeit goods. We will enhance the dynamism of business development by maintaining a well-ordered market.

Fourth, we will strengthen supportive resources for business entities. The NFRA will push financial institutions to increase their support for the real economy, quickly improving the mechanisms for coordinating financing support for small and micro enterprises, and helping to alleviate their funding challenges. The SAMR will collaborate with other departments to introduce innovative quality financing and credit enhancement policies, promoting mechanisms based on companies' technological capabilities and quality qualifications to improve the accessibility and convenience of financing for small businesses. The MIIT will actively provide SMEs with one-stop services, including talent acquisition, financing support and digital enablement, fully helping enterprises reduce costs, improve efficiency and enhance quality.

Fifth, we will firmly protect the legal rights of business entities. We are accelerating the implementation of a law on private sector promotion to guarantee equal treatment and protection for private enterprises, fostering an optimal environment for the growth of the non-public sector. We will effectively implement the Regulations on Optimizing the Business Environment, aiming to lift restrictions on the market while ensuring effective regulation. In response to issues like unfair market access barriers and restrictions on businesses relocating across regions, we will quickly develop and introduce effective measures that address the concerns of business entities. Additionally, we will conduct thorough evaluations and clean ups of legal and regulatory policies impacting businesses, eradicating any discrimination or differential treatment based on ownership, size or geographic location.

Lastly, we will standardize law enforcement and supervision related to businesses. The MOJ will strengthen oversight of administrative law enforcement concerning businesses, actively promoting strict, procedure-based, impartial and non-abusive law enforcement. We will address prominent issues in administrative law enforcement and improve communication mechanisms for handling business-related appeals. The process for handling administrative reconsideration cases involving businesses will be expedited. We will ensure that administrative agencies perform their duties in accordance with the law. The SAMR will accelerate the introduction of specific initiatives for service-oriented law enforcement. This will involve establishing standards for administrative actions and increasing the usage of flexible approaches such as warnings and guidance. Services will be incorporated throughout the entire regulatory and enforcement process to effectively guide businesses towards lawful and compliant operations.

This concludes my briefing. Thank you!

Shou Xiaoli:

Thank you, Mr. Luo, for your briefing. We will now open the floor to questions. Please raise your hand and state the news outlet you represent before asking your questions.

Zhonghongwang.com:

Recently, it was stressed at a meeting of the Political Bureau of the CPC Central Committee that we should effectively implement existing policies while launching robust incremental policies. What policies and measures will the SAMR roll out soon to stimulate business entities' vitality while improving policies and measures to be more targeted and effective? Thank you.

Luo Wen:

Thank you for your question. The SAMR has always paid close attention to supporting business entities. In accordance with the central authorities' arrangements for implementing an incremental policy package, we will introduce policies and measures in the following four aspects:

First, we will guide platform companies in using their traffic to help merchants on the platform increase brand awareness and expand market transaction volume. We will issue opinions on guiding online marketplaces to positively leverage online traffic to support the development of micro-, small- and medium-sized businesses. We will encourage such platforms to allocate online traffic reasonably, focusing on three types of businesses: agricultural product operators, specialty businesses, and newly settled merchants. Additionally, platforms should leverage large-scale sales promotion activities to increase traffic for businesses, helping improve traffic utilization efficiency and management capabilities. This approach aims to fully stimulate businesses' internal drive and market vitality within the platform. 

Second, we will promote the use of quality reputation as a basis for corporate financing. We'll push financial institutions to incorporate quality-related factors such as a company's quality capabilities, management quality, and brand quality into their credit approval and risk management models. In particular, financial institutions should design tailored financial products and services for micro-, small- and medium-sized enterprises, implementing differentiated arrangements in terms of credit limits, interest rates, financing terms, and repayment methods. This will improve the accessibility and convenience of financing for businesses. Together with equity, funds and bond-based financing tools, the country aims to generate a credit enhancement and financing quota of 300 billion yuan each year, which will benefit all enterprises.

Third, we will provide targeted assistance to self-employed individuals according to categories and types. As we know, most business entities in our country are self-employed individuals. As of the end of August, there were 125 million self-employed individuals, accounting for two-thirds of all business entities. Consequently, self-employed individuals play an important role in stabilizing employment, improving well-being, and boosting growth. The SAMR categorizes self-employed individuals into three stages and four types. The stages are survival, growth, and development, while the types are famous, special, outstanding and innovative. A unified national directory based on this classification will be established by year-end. Using this directory, we'll collaborate with relevant departments to launch targeted policies on tax, social security, employment and financing. This will enable local governments to offer tailored assistance to self-employed individuals for workspace, costs, training and recruitment.

Fourth, we will quickly develop and update key standards for equipment renewal and consumer goods trade-ins. Large-scale equipment renewals and consumer goods trade-ins can effectively boost investment and consumption, significantly increasing growth potential for enterprises. This year, the SAMR assigned 130 tasks regarding the formulation and revision of important standards relating to equipment renewal and consumer goods trade-ins. So far, 74 of them have been completed. Next, we'll implement actions to refine and accelerate standards development. We'll prioritize upgrading technical standards for energy use and emissions, improving product safety standards, and expanding standards for recycling. These efforts aim to promote equipment renewal and consumer goods trade-ins through enhanced standards.

These are the four major initiatives we plan to roll out to enhance the vitality of business entities. Thank you.

Yicai:

The draft law on the promotion of the private sector is currently seeking public comments. It's believed to be a crucial step for boosting the confidence of private businesses. How does the MOJ think this law will impact the development environment for the private sector? Thank you.

Hu Weilie:

I'll answer this question. I appreciate the keen interest from both the media and the public in this law. Since the draft law was released for comment, the MOJ has received more than 1,000 ideas and suggestions. The formulation of this law is a decision and arrangement of the CPC Central Committee and the State Council. It was also a clear requirement made at the third plenary session of the 20th CPC Central Committee. As China's first fundamental law dedicated to boosting the private sector, it upholds Party leadership and the fundamental socialist economic systems. It commits to unswervingly consolidating and developing the public sector and unswervingly encouraging, supporting, and guiding the development of the non-public sector. This draft law incorporates approaches and policies for developing the private economy adopted by the CPC Central Committee and State Council since reform and opening-up began, especially after the 18th CPC National Congress, along with effective practices, into the legal system. The draft law enshrines equal treatment and protection for private businesses, aiming to establish a long-term mechanism that stabilizes development expectations for private enterprises and entrepreneurs while boosting the private sector. As a groundbreaking move, the draft law includes terms such as staying committed to unswervingly consolidating and developing the public sector, unswervingly encouraging, supporting, and guiding the development of the non-public sector, as well as cultivating and advocating entrepreneurship. It also clarifies that promoting the private sector's sustained, healthy and high-quality development is a persistent national policy. The draft law clearly indicates that boosting the private sector is a consistent and long-term Party and government policy. These contents, after being written into law, will provide a stable binding force to facilitate the sustained, healthy and high-quality development of the private sector and create a more beneficial environment for the common development of economic entities under all forms of ownership, including private ones.

In terms of market access, the draft law makes several clear stipulations. All types of economic organizations, including private ones, may operate in accordance with law and on an equal footing in fields not included in the negative lists for market access. The system for fair competition review should be implemented, and policies and measures must go through such review before being issued. Private economic organizations shouldn't be limited or excluded from bidding, government procurement and other public resource trading activities. These measures aim to promote fair competition with participation from private businesses.

In terms of sci-tech innovation, the draft explicitly supports the active participation of private sector in developing new quality productive forces, and encourages its participation in national sci-tech research projects. The draft also supports capable private enterprises and organizations in taking the lead in major technological breakthrough tasks, guarantees their participation in standard setting and the development and utilization of public data resources in accordance with the law, and strengthens the protection of their intellectual property rights.

In terms of investment and financing support, the draft focuses on optimizing the investment and financing environment for private sector, supporting the participation of private enterprises and organizations in national major strategies and major projects. Governments at all levels and their departments are required to facilitate the promotion and connection of investment projects, supporting private enterprises and organizations in revitalizing existing assets and enhancing reinvestment capabilities. The draft also supports financial institutions in developing financial products and services tailored to private economic entities, providing them with rights-based pledged loans. Differentiated supervision is implemented for financial institutions providing financial services to micro- and small-sized private enterprises, allowing for a reasonable tolerance for non-performing loans. The establishment of a market-based risk-sharing mechanism for financing private enterprises and organizations is also promoted.

In terms of operation regulations, the draft imposes requirements on private sector to operate in accordance with the law, proactively integrate into national strategies, actively fulfill its social responsibilities, and serve the economic and social development with private capital. These measures will better ensure the stable and far-reaching development of private enterprises within the legal framework, promote the development of the private sector, and facilitate the growth of individuals within the private sector.

In terms of service guarantees and rights protection, the draft strengthens the supervision of administrative law enforcement, standardizes enforcement inspection procedures, and stipulates that administrative penalties must be commensurate with the facts, nature, circumstances and degree of social harm of the violations. It requires that any restrictions on personal freedom must be in accordance with statutory powers, conditions and procedures. No exceeding of powers, scope, amounts, time limits for sealing, seizure or freezing of property is allowed. Unlawfully intervening in economic disputes through administrative or criminal means is prohibited. Firm measures have been taken to curb arbitrary fines, inspections and seizures. These provisions establish basic principles of the rule of law and legal compliance for law enforcement and supervision involving enterprises, further optimizing the legal environment for doing business, enabling private enterprises and entrepreneurs to do business and develop with peace of mind.

That's all from me. Thank you.

Phoenix TV:

Micro- and small-sized enterprises are crucial for stabilizing the economy, expanding employment and improving people's livelihoods. Could you please elaborate on the measures taken by the NFRA to assist enterprises in difficulty and alleviate financing challenges for micro- and small-sized business entities? Thank you.

Cong Lin:

Thank you for your question. Micro- and small-sized enterprises are closely connected to countless households. I appreciate your attention to the financial work concerning these enterprises. In accordance with the decisions and deployments of the CPC Central Committee and the State Council, especially following the guiding principles of the meeting of the Political Bureau of the CPC Central Committee on Sept. 26, we have been guiding financial institutions to increase financial support to the real economy and optimize financial services for various types of business entities. Recently, we have introduced a series of measures focused on supporting enterprises. The key aim of these measures is to address the financing bottlenecks and obstacles for micro- and small-sized enterprises, optimize the business environment, facilitate financing channels, and strive to maintain quality services while offering more competitive pricing.

Let me start by presenting a set of financial data. Overall, the supply of credit has been steadily increasing. By the end of August, the balance of RMB loans had reached 252.02 trillion yuan, an increase of 8.5% year on year. Insurance companies provided various financing support totaling 28.8 trillion yuan through bonds, stocks and other means. In terms of structure, support for key areas continues to increase. Loans to inclusive micro- and small-sized enterprises grew by 16.1% year on year, while loans to private enterprises increased by 9%. Regarding the price, interest rates have remained stable with a slight decline. From January to August this year, the interest rate on newly issued loans to inclusive micro- and small-sized enterprises decreased by 0.4% compared to the same period last year.

Here are some specific measures:

First, optimizing the policy of loan renewals without principal repayment to ease cash flow pressures for businesses. This policy not only applies to micro- and small-sized enterprises but has also temporarily been expanded to medium-sized enterprises. It should be emphasized that eligible renewal loans should not have their risk classification downgraded solely due to the renewal process. Banks need to enhance risk management, taking into account factors such as the borrower's repayment capacity and collateral, to appropriately classify the risk associated with each renewal loan.

Second, collaborating with the National Development and Reform Commission (NDRC) to establish a financing coordination mechanism to support micro- and small-sized enterprises. The core of this mechanism involves setting up specialized teams at the district and county levels to facilitate precise communication between banks and enterprises. On the enterprise side, a comprehensive understanding of the actual business operations within the jurisdiction will be obtained to achieve targeted assistance and effectively address the financing challenges faced by enterprises. On the bank side, obstacles and bottlenecks in information and fund transmission will be cleared. The goal is to ensure that legally compliant enterprises with genuine financing needs and good credit standing can access the financing they need through this mechanism. Moreover, the funds are direct without intermediaries, and the financing costs are reasonable.

Third, further leveraging the protective role of insurance. In areas such as construction projects and foreign trade exports, the substitution of deposits with performance guarantee insurance and tariff guarantee insurance is encouraged. In the first half of the year, this measure has freed up capital for 520,000 companies, reducing their financial pressure on cash flow. Additionally, export credit insurance companies are encouraged in providing comprehensive financial services such as "credit guarantee + policy financing" to address the concerns of exporters.

Fourth, improving the liability exemption system. We all know that the key to enhancing financial services for micro and small enterprises is to relieve the burden on primary-level lending personnel and foster a positive atmosphere that encourages responsibility among them while ensuring that they will be exempt from liability under the purview of due diligence. Recently, we further revised the original notice about the liability exemption mechanism for inclusive lending, clarifying various exemption situations. For personnel who basically fulfill their job responsibilities and only make minor mistakes, their liability will be reduced or exempted. We learned that many banks have already refined and improved their internal regulations according to regulatory requirements, and the number and proportion of exemptions have increased.

In addition, our regulatory work will be more targeted. Under the premise of law-based and comprehensive regulation, we will adopt more flexible and inclusive regulatory measures, such as policy guidance, risk alerts and prompts for corrective action, to address general and operational risks in inclusive finance, particularly in services for micro and small enterprises. This approach integrates regulation with service. With this more humane approach, we aim to enhance the enthusiasm and proactivity of financial institutions to implement support policies, thereby creating a favorable environment for business development.

That's all from me. Thank you.

Beijing Youth Daily:

Arbitrary fees imposed on enterprises not only increase their burden but also harm the business environment. What steps will be taken to address the issue of illegal charges on enterprises, in order to alleviate their burden while also protecting their legal rights and interests? Thank you.

Luo Wen:

Thank you. I will answer this question. Recently, the SAMR has intensified its enforcement efforts against illegal charges on businesses, aiming to genuinely help alleviate the burden on enterprises.

First, we will resolutely prohibit the illegal establishment of fee items. We will call on government departments, affiliated units and industry associations to ensure that policy documents related to fees have a legal basis. Any documents found to lack legal justification during inspections will be promptly revised or abolished. For charging entities like financial institutions, and utilities such as water, electricity, gas and heating, we will enhance inspections and random checks to firmly address issues such as double charging and compulsory fees. We will improve the directory of all enterprise-related fees, and fully disclose fee items, bases and standards. Any charges not included in the directory will be strictly prohibited.

Second, we will increase punishments for arbitrary charging practices. For administrative agencies, public institutions and social organizations with the function of public affairs management, and organizations with dominant positions in specific fields, we will comprehensively employ market regulation, industry regulation and credit supervision to strengthen penalties for such behaviors and make public major cases that have garnered strong social response. We will enhance the publicity and interpretation of typical cases, clarifying laws and regulations through these examples, helping fee-paying enterprises to understand fee policies while ensuring charging entities adhere to policy boundaries, thus fully utilizing social supervision. We will strengthen coordination of administrative enforcement of law and discipline, and promptly transfer evidence of disciplinary offences according to procedures.

Third, we will strengthen the legal safeguards for regulating enterprise-related fees. Taking the revision of the Price Law as an opportunity, we will clarify the legal requirements related to fee management for state organs and public institutions. We will promote the formulation of the Measures for Handling Irregular Charges on Enterprises, detailing the standards for identifying such violations and increasing administrative penalties. We will expedite revisions and improvements to the enforcement and compliance guidelines for enterprise-related fees across various sectors, solidifying the legal foundation for regulating fees. Additionally, we will enhance the implementation of the Compliance Guidelines for Charging Behaviors of Industry Associations and Chambers of Commerce to further regulate the charging practices of social organizations and optimize the business environment.

Fourth, we will improve the long-term regulatory mechanism for enterprise-related fees. We will address arbitrary charging issues at the source, exploring the establishment of a compliance review system for fee-related policy documents. We will enhance the scrutiny of these documents to effectively address issues that policies may impose additional payment obligations on enterprises and increase their burden. We will improve the regular mechanism for collecting evidence of such issues and set up monitoring points for enterprise-related fees, fully leveraging their role as the "outpost" in combating arbitrary charges. At the same time, we will work out innovative regulatory methods, and improve approaches such as reminders, enforcement orders, consultations and supervisory directives to ensure that arbitrary charging issues are adequately rectified.

That is all from me. Thank you.

Jimu News:

Innovative SMEs that use special and sophisticated technologies to produce novel and unique products have garnered significant attention. What measures can we expect in the future to further cultivate such enterprises? Thank you.

Wang Jiangping:

Thank you for your interest in these innovative SMEs that use special and sophisticated technologies to produce novel and unique products. Supporting the development of SMEs is a long-term strategy of our country. As the comprehensive management department of the State Council responsible for supporting SMEs, the MIIT has always encouraged the development of innovative enterprises that use special and sophisticated technologies to produce novel and unique products, and has been progressively cultivating high-quality SMEs. Currently, China has 141,000 such innovative SMEs, including 14,600 "little giant" enterprises, which play a significant role in promoting new industrialization and developing new quality productive forces. Next, the MIIT will work with relevant departments to establish a mechanism that promotes the growth and development of such innovative SMEs, improving the full-cycle cultivation system of "selection, nurturing and excellence" to facilitate their high-quality development.

In terms of technological innovation, we have collaborated with the Ministry of Finance to launch a new round of support policies for these innovative enterprises. This year, with financial support from the central government, we will assist over 1,000 key "little giant" enterprises in creating new momentum, tackling new technologies, developing new products, and strengthening the supporting capabilities of the industrial chain. Through special re-lending projects, we will support the technological transformation and equipment updates of more than 1,100 "little giant" enterprises. We have released a directory of pilot service resources for SMEs, prioritizing support for "little giant" enterprises to participate in application plans for key products and processes. We have implemented a plan to promote the industrialization of patents as part of the efforts to support the growth of SMEs, providing services related to intellectual property, such as rapid pre-examination and rights confirmation, for eligible innovative SMEs that use special and sophisticated technologies to produce novel and unique products.

In terms of digital transformation, we have selected the second batch of pilot cities for SMEs' digitalization, which will be backed by central government funds worth 2.7 billion yuan and local government investment funds that are worth more than 12 billion yuan. Next year, another batch of pilot cities will be chosen to help over 40,000 SMEs across the country achieve digitalization. 

In terms of financial support, the MIIT will work with China Securities Regulatory Commission (CSRC) to launch the third batch of dedicated boards in regional equity markets for SMEs that use specialized and sophisticated technologies to produce novel and unique products. We are set to sign a strategic cooperation agreement with the Beijing Stock Exchange to further expand channels to finance these enterprises. We are going to focus on key industrial chains with relevant departments to carry out a national campaign for the financial promotion of SMEs, targeting designated chains in different months and directly linking SMEs with financial institutions.

In terms of services and guarantees, we encourage "little giant" enterprises to set up postdoctoral research stations, give senior ranking personnel the right to provide recommendations and support SMEs that use specialized and sophisticated technologies to produce novel and unique products, so as to pilot senior professional titles' independent evaluations in these enterprises. They are also provided with preferential policies on aspects including registering permanent residencies, housing and children's education for talents. We have established SME service networks at the national, provincial, city and county levels, gathering more than 1,780 public service institutions to resolve the "last-mile" problem on policy, technology, management and service resources. Thank you!

Bloomberg:

In recent years, the numbers of new startups and unicorn enterprises have decreased while the venture capital industry has also faced various challenges. How do you plan to foster more unicorn firms and what are the biggest obstacles? Thank you.

Wang Jiangping:

Thank you for your questions. As representative enterprises for a new economy, new business form and new model, unicorn companies have become a new asset in fostering new quality productive forces by featuring fast development speeds and high growth rates. In recent years, a number of super unicorn companies have emerged in China, with unicorn firms continuously increasing and their comprehensive capacities greatly improving. At present, Chinese unicorn enterprises are not only stationed in Beijing, Shanghai, Hangzhou, Guangzhou and Shenzhen, but also nestled in Chongqing, Tianjin, Chengdu, Changsha, Wuhan and other cities, showcasing an emerging trend of diversified development. In recent years, unicorn enterprises from high-end manufacturing, consumer and retail, high-tech and other related fields have accounted for more than 78% of the total volume, and more than half of last year's new unicorn enterprises came from hard technology sectors such as new energy, artificial intelligence and semiconductors.

The growth of unicorn enterprises on the one hand depends on their own technological strengths, while, on the other hand, requires a favorable business environment. Next, the MIIT will take the following measures to boost the growth of such firms. First, a unified national cultivation system for unicorn enterprises will be established, with coordination between state organs and provincial governments. Second, technological innovation will be pushed and unicorn firms will be guided in carrying out scientific research on the basis of national strategic needs and to achieve remarkable results. Third, financial support like industry and financing cooperation platforms will be given full play to help unicorn enterprises go public, merge and reorganize. Fourth, future-oriented industries, including atomic-level manufacturing, brain-computer interface and 6G will be boosted with forward-looking plans, promoting the development of unicorn enterprises. Fifth, unicorn enterprises will be supported to join the global innovation network and conduct innovative cooperation. We warmly welcome international innovation teams to start businesses in China as well as welcome foreign capital to invest in unicorn enterprises in China. We are ready to share with the rest of the world China's development opportunities with entrepreneurship and innovation. Thank you!

Red Star News:

Currently, improper behaviors still exist in enterprise-related law enforcement, and some administrative law enforcement personnels act inappropriately and even rudely. What measures will the MOJ take to intensify the supervision of enterprise-related administrative law enforcement, build law-enforcement capacity and correct wrongdoing according to the law? Thank you.

Hu Weilie:

Thank you for your question. Regarding prominent problems with administrative law enforcement, the MOJ will give full play to the functions of inspecting the rule of law, coordinating and supervising administrative law enforcement as well as administrative reconsideration, and will work with relevant departments to form synergy and intensify oversight to comprehensively improve the quality and efficiency of law enforcement. 

We will make great efforts to address prominent problems frequently complained about by enterprises and the public, including irresponsible and neglectful administrative law enforcement. Recently, the Commission for Overall Law-based Governance under the CPC Central Committee launched enforcement inspections targeting the law-based business environment. The MOJ and relevant departments currently are conducting a special nationwide inspection campaign that focuses on rectifying wrongdoing such as disturbing business operations with law enforcement or law enforcement for the purpose of increasing revenue. Relevant government organs will be asked to push forward rectifications to further increasing people's sense of satisfaction. We will release a batch of administrative law enforcement supervision cases soon to guide judicial and administrative organs at all levels with intensifying enterprise-related law enforcement oversight.

We will make great efforts to improve business-related inspections. We have recently noticed that during the process of soliciting public opinion on draft law on private sector promotion, enterprises complained a lot about overly frequent, arbitrary and repeated inspections, which disturbed the enterprises' normal operations. With the current special oversight, we have made administrative inspections a priority, and have made more efforts to rectify and standardize irregular and excessive inspections. Typical cases will be made known after the enforcement inspection to strengthen supervision on improvements. Looking forward, we will formulate relevant regulations, improve management and procedures with administrative inspection and will guide law enforcement authorities at all levels to initiate tiered and classified inspections. By doing so, the rigid constraints of abolishing irregular and excessive inspections will be strengthened by institutions. At the same time, a national information system on integrated management and supervision for administrative law enforcement will be accelerated to govern such procedures through the use of information technology.

We will comprehensively strengthen supervision over fines. We will standardize the setting and implementation of fines in accordance with the law, and resolutely prevent the use of fines to increase income or take the place of governance. We will vigorously promote the establishment of a system of standards across various regions and relevant departments on administrative discretion for matters such as administrative penalties and administrative inspections, so as to effectively solve the problem of inconsistent and uncoordinated law enforcement standards.

We will encourage law enforcement departments at all levels to establish and improve the economic impact assessment system for enterprise-related law enforcement, so as to minimize the negative impact of administrative law enforcement activities on the normal production and operation of enterprises. When administrative departments file a case, investigate, take coercive measures such as sealing, sequestering, and freezing of assets, or impose major administrative penalties on an enterprise involved in a case, they are required to conduct a comprehensive study into the possible impact on the enterprise's production and operation activities, and undertake targeted prevention and response measures.

We will strengthen communication mechanisms for business-related law enforcement and form a joint force for supervision. This includes establishing comprehensive information-sharing and cooperation mechanisms between administrative law enforcement supervision and channels like the 12345 government service hotline and online media. We will implement an enterprise contact system for administrative law enforcement supervision, collect and coordinate information on law enforcement violations related to enterprises, and ensure relevant law enforcement departments promptly correct issues.

We will improve the system for managing administrative law enforcement personnel and improve their quality and abilities. This includes clarifying qualification requirements for administrative law enforcement personnel and ensuring strict entry standards. We will issue guidelines on non-abusive law enforcement for law enforcement personnel, guide law enforcement personnel to carry out law enforcement activities in a non-abusive way, and conduct training for administrative law enforcement personnel in different levels and categories. We will strictly implement the responsibility system for administrative law enforcement, and promptly transfer any evidence discovered about violations of disciplines and laws by law enforcement personnel to the disciplinary inspection and supervision authorities. That's all from me. Thank you.

CCTV:

The meeting of the Political Bureau of the CPC Central Committee pointed out that in order to help enterprises navigate difficulties, it is necessary to further standardize the law enforcement and regulatory behaviors related to enterprises. What other targeted measures will the SAMR take in regulating law enforcement and supervision of enterprises? Thank you.

Luo Wen:

Thank you for your question. The SAMR will soon release the Guiding Opinions on Firmly Establishing the Concept of Supervision for the People and Promoting Service-Oriented Law Enforcement and the Code of Conduct for Market Supervision and Law Enforcement. These will further standardize law enforcement and supervision behavior from the following four aspects:

First, we will refine the standards for administrative discretion and proportional punishment. We will improve the system for the discretion of administrative penalties in market regulation, promote the alignment of administrative law enforcement standards across regions, implement a guiding case system, and promote the unification of law enforcement standards. Minor violations of the law will be exempted from punishment or given lighter or mitigated punishments. However, those who endanger the lives and health of the people and the safety of property, harm the public interest, challenge the moral bottom line and cause significant social impact, shall be severely punished in accordance with the law. 

Second, we will optimize law enforcement methods to reflect a more considerate approach. By using reasoning-based law enforcement documents and language, we aim to clearly explain the facts of the violation, the basis for punishment and the available remedies to the parties involved, and strive to gain their understanding and cooperation. We will improve the law enforcement that combines punishment with education, and adhere to the principle of popularizing legal knowledge in advance, reasoning during the incident and resolving doubts afterward. We will establish mechanisms for post-case guidance, rectification checks and assistance for difficulties, so as to encourage the parties concerned to comply with decisions and correct illegal behaviors.

Third, we will standardize routine supervision to avoid unnecessary disturbances. We will fully implement practices such as the random selection of inspectors and inspection targets, and the prompt release of results. By using databases of inspection targets and law enforcement inspection personnel, we will randomly select inspection objects, randomly select inspectors, and ensure no repetitive, overlapping or excessive inspections. We will strengthen categorized credit risk management for enterprises, scientifically apply risk levels, and reasonably determine and dynamically adjust the proportions and frequency of inspections. Enterprises maintaining good credit will be left undisturbed. We will also accelerate the promotion of cross-departmental comprehensive supervision and joint inspections, aim to achieve "multiple checks during a single visit," so as to truly reduce the burden on enterprises.

Fourth, we will enhance legal education services and promote enterprise self-discipline. We will take legal education as the prerequisite and basis for supervision and law enforcement. We will take the prevention of illegal acts and serving the healthy development of business entities as important tasks of legal supervision. And we will make better use of the legal education and administrative guidance to help enterprises correct deviations and prevent mistakes. In addition, enterprises will be encouraged to strengthen compliance capacity, increase awareness of integrity and abiding by the law, and enhance their capabilities to operate in accordance with laws and regulations. It is necessary to conduct in-depth analysis and assessments on issues that signal unfavorable trends and potentials in individual cases. We will promptly remind, warn and urge similar enterprises, and promote enterprises to consciously operate in accordance with laws. Thank you.

Guangming Daily:

We have noticed that some industrial enterprises are currently facing issues such as insufficient orders. As the industry's governing body, what considerations and specific measures are the MIIT taking to help enterprises expand markets and boost domestic demand? Thank you.

Wang Jiangping:

In the fourth quarter, the MIIT will work with relevant departments to launch a number of specific measures to promote consumption and expand domestic demand to help enterprises expand markets and unleash their potential.

First, we will focus on the leading role of investment and implement technological transformation and equipment upgrading projects. We will expedite the approval and funding for projects supported by ultra-long-term special treasury bonds, and accelerate the issuance of 150 billion yuan in relending loans for technological transformation that have been signed. In the coming period, we will recommend a new batch of special relending projects to banks, and plan in advance the pilot cities for manufacturing technological transformation in 2025. We will organize reserve projects in the industrial field to start construction and create more physical workload as soon as possible. Currently, there are about 36,000 projects under construction or set to start within the year in the industrial sector, which are expected to drive over 11 trillion yuan in investment over the next three years.

Second, to expand consumption, we will organize a series of initiatives to improve supply and promote upgrading. First, we will promote the trade-in of consumer goods. To facilitate the trade-in of electric bikes, we have formulated and implemented mandatory national standards for lithium batteries, chargers and electrical safety, and have published a list of 31 qualified electric bike companies in two batches. Second, we will intensify the promotion of new energy vehicles. By the end of this year, we will continue to hold dedicated events to promote new energy vehicles in rural areas while expanding charging infrastructure in these areas. We will also designate additional pilot cities for the full electrification of public-sector vehicles. Third, we will initiate a matrix of renowned Chinese consumer goods, selecting and establishing a thousand products across three categories: historical classics, contemporary premium items and trendsetting products. We will launch the first batch of 100 globally recognized brands and organize global promotional activities. Fourth, we will establish specialty food production hubs nationwide, improve supply and promote upgrading in the textile and apparel sectors, and conduct national events such as the "Foodie Festival,"  under an initiative to increase product variety, improve quality and strengthen brand-building.

Third, we will deepen scenario applications and foster new quality productive forces such as low-altitude economy and intelligent manufacturing. With a focus on building a low-altitude industrial ecosystem, we will support regions with abundant airspace resources and diverse application scenarios to take the lead in piloting initiatives. Tailored to local conditions, we will create a demonstration system for multi-scenario low-altitude applications, advance new consumption formats like low-altitude logistics, urban and intercity air transport and low-altitude cultural tourism, and expand new models such as agricultural and forestry plant protection, inspection and patrol, and emergency rescue, creating a new engine for economic growth. We will issue guidelines to drive innovation in future industries, vigorously developing new areas such as humanoid robots, brain-computer interfaces and 6G. In addition, we will support enterprises in upgrading intelligent manufacturing, focusing on the application of intelligent manufacturing technology in typical industries and fostering a tiered development of intelligent factories at basic, advanced, excellent and leading levels.

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

Shou Xiaoli:

In the interest of time, last question. 

China Banking and Insurance News:

In light of difficulties with financing and high costs that are faced by small and micro enterprises, a coordination mechanism to support their financing has recently been established. Could you share some specific arrangements for this mechanism. Thank you!

Cong Lin:

Thank you for the question. Small and micro enterprises play a significant role in driving the economy, creating jobs and improving livelihoods. Drawing on thorough research and the experiences of relevant mechanisms, the NFRA has taken the initiative to establish a coordination mechanism to support financing for small and micro enterprises. This mechanism aims to leverage the advantages of the Party's leadership and the institutional framework of socialism with Chinese characteristics, strengthen coordination between central and local governments, tackles both the challenges small and micro enterprises face in securing financing and the difficulties banks encounter in lending to them. We will soon hold a dedicated meeting to outline the plans. Let me introduce the mechanism from three dimensions: who will take the lead, how it will be implement and what goals will be achieved.

First is the question of "who will take the lead." At the national level, the NFRA and the NDRC will spearhead efforts, working together with relevant government departments and banking institutions. The NFRA and the NDRC will focus on overall coordination and scheduling, aligning industrial, fiscal and taxation and financial policies to create a multiplier effect through policy synergy. At the local level, provinces, cities, districts and counties should establish corresponding working mechanisms, refine plans according to local conditions, and ensure effective implementation of various tasks. Especially at the district and county level, dedicated task forces should be set up to conduct enterprise visits, assess their needs, and recommend financing options. On the banking side, similar task forces will be set up to mobilize internal resources, encourage local-level institutions to lend proactively, and promptly address the financing needs of small and micro enterprises.

Second is the question of "how it will be implemented." Districts and counties, given their close ties to the grassroots level, have the deepest understanding of enterprises and serve as the driving forces and basic units for ensuring the mechanism is effectively implemented. Therefore, the task forces at the district and county level should act as bridges, connecting enterprises and banks. They should organize relevant departments, urban subdistricts, towns and townships as well as banking institutions to conduct visits. Specifically this involves assessing the operating conditions and financing needs of small and micro enterprises, explaining supportive policies, reducing discrepancies between policy intentions and enterprises' perceptions, and referring eligible small and micro enterprises to banks. The banks, in return, will make credit decisions based on market-oriented and legal principles as well as their own credit approval criteria, thereby providing financial support to the enterprises. In summary, the requirements are clear and simple: As long as small and micro enterprises operate in compliance and continuity, have a fixed place of business, are in sound operating condition, have genuine financing needs and intend to use loans for compliant purposes, they can access the funding needed for growth through this mechanism.

Finally, there is the question of "what goals will be achieved." We hope to achieve the following three goals: First, direct access to the grassroots level. Low-cost credit funds should directly reach the grassroots, eliminating any final barriers to benefiting enterprises and the public. Second, efficiency and convenience. Banks should, in principle, decide on credit approval within one month. For eligible enterprises, banks should establish green channels, optimize procedures and expedite processing. Third, reasonable interest rates. By reducing the cost of information gathering, cutting down on intermediary steps and lowering lending costs and additional fees, we aim to reduce the overall financing costs for small and micro enterprises.

That's all for my answer. Thank you!

Shou Xiaoli:

Thank you, Mr. Luo Wen. Thank you to the other speakers, and thank you to all the journalists for your participation. This concludes today's press conference. Goodbye!

Translated and edited by Wang Yiming, Wang Qian, Liu Sitong, Chen Xinyan, Wang Xingguang, Lin Liyao, Wang Yanfang, Yan Xiaoqing, Huang Shan, Wang Ziteng, 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. Lan Fo'an, minister of finance

Mr. Liao Min, vice minister of finance

Mr. Wang Dongwei, vice minister of finance

Ms. Guo Tingting, vice minister of finance

Chairperson:

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

Date:

Oct. 12, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Lan Fo'an, minister of finance, to brief you on intensifying countercyclical adjustment of fiscal policy to promote high-quality economic development, and to answer your questions. Mr. Liao Min, Mr. Wang Dongwei and Ms. Guo Tingting, all vice ministers of finance, are also present today.

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

Lan Fo'an:

Hello, friends from the media. It is a great pleasure to have the opportunity to speak with you today. First of all, on behalf of the Ministry of Finance (MOF), I would like to extend my sincere gratitude to you for your long-term interest in and support for the finance work. I would like to begin by sharing with you the implementation of the proactive fiscal policy so far this year, and outline our overall plans for intensifying countercyclical adjustment of fiscal policy and promoting high-quality economic development.

Since the beginning of this year, the financial departments have thoroughly implemented the requirements of the Central Economic Work Conference. We have appropriately enhanced the intensity of our proactive fiscal policy and improved its quality and effectiveness. We have used a mix of policy tools such as deficits, special-purpose bonds, ultra-long special treasury bonds, tax cuts, fee reductions and fiscal subsidies. Additionally, we have intensified our fiscal policy, strengthened support for key sectors, and actively prevented and mitigated risks, promoting sustained economic recovery and growth. These efforts can be mainly summarized in the six following areas:

First, we have expanded fiscal spending. The deficit this year is set at 4.06 trillion yuan, an increase of 180 billion yuan over the 2023 budget figure. The quota for local government special-purpose bonds is 3.9 trillion yuan, up by 100 billion yuan from last year. 1 trillion yuan of ultra-long special treasury bonds has been approved for issuance in 2024, and the additional treasury bonds issued in 2023 have been well utilized. Total general public expenditure in the government budget in 2024 are projected to reach 28.55 trillion yuan, maintaining a relatively high spending intensity, thereby providing strong support for high-quality development.

Second, we have optimized tax and fee relief policies. We have fully implemented the structural tax and fee reduction policies, and continued with measures such as additional tax deductions for R&D expenses, additional VAT deductions for advanced manufacturing enterprises, and tax reductions and exemptions for the application of scientific and technological advancements. The preferential tax policies for manufacturing enterprises to upgrade their technologies have also been improved. From January to August, tax reductions, fee cuts and tax rebates related to policies supporting sci-tech innovation and manufacturing development exceeded 1.8 trillion yuan.

Third, we have actively expanded effective domestic demand. We have urged local governments to effectively use the additionally issued treasury bonds to support post-disaster reconstruction and enhance capacity for disaster prevention, mitigation and relief. We have ensured the proper issuance and use of ultra-long special treasury bonds to support major national strategies and build up security capacities in key sectors. We have also actively promoted large-scale equipment upgrading and consumer goods trade-in programs. Additionally, we have continuously enhanced the management of local government special-purpose bonds, appropriately expanding the range of areas and uses to which funds from the sale of such bonds can be channeled, thus supporting local governments in strengthening key sectors that have weaknesses. From January to September this year, 3.6 trillion yuan in new special-purpose bonds was issued, with more than 260 billion yuan used as project capital, supporting over 30,000 projects.

Fourth, we have redoubled our efforts to ensure that, at the primary level, the "Three Guarantees" (guaranteeing basic living needs, payment of salaries and government functioning) are met, and that key sectors are secured. Following the requirement that Party and government institutions must get used to keeping their belts tightened, we have strictly controlled general expenditures, ensuring more funds are available for basic living needs, salaries and government functions as well as key sectors. In 2024, the central government's transfer payments to local governments were set at more than 10 trillion yuan. Specifically, transfer payments for ensuring equal access to basic public services increased by 8.8%, and those for rewards and subsidies to ensure basic funding for county-level governments rose by 8.6%. By doing so, we have provided greater fiscal support for local governments to ensure that, at the primary level, the "Three Guarantees" are met. We have increased support for sci-tech development, all-round rural revitalization and ecological conservation. Specifically, central government expenditures on science and technology were set to increase by 10%, central government subsidies for rural revitalization were set at 177 billion yuan, and 65.1 billion yuan was approved for pollution prevention and control. Moreover, we have refined the fiscal and tax support policies aimed at promoting coordinated regional development, and actively implemented regional development strategies such as the promotion of the coordinated development in the Beijing-Tianjin-Hebei region, the development of the Yangtze River Economic Belt, and the integrated development of the Yangtze River Delta.

Fifth, we have bolstered support to ensure basic living needs. Since the beginning of this year, the central government has approved 66.7 billion yuan for employment subsidies, supporting local governments in their efforts to ensure employment and vocational skills training for key groups such as college graduates. From January to September, education spending nationwide reached 3 trillion yuan. We have increased national basic pensions for retirees by 3% compared to 2023 and significantly raised the minimum basic old-age benefits for rural and non-working urban residents. We have raised the annual per capita government subsidies for basic public health services to 94 yuan and annual per capita government subsidies for basic health insurance for rural and non-working urban residents to 670 yuan. Going forward, we will further boost expenditures in relevant areas based on the changing demographics as well as the diverse and multifaceted needs of our people, so as to deliver more benefits to them.

Sixth, we have made real efforts to defuse local government debt risks. We have ensured that the primary responsibilities of local governments are fulfilled, implementing tailored risk defusing measures for each province. In addition to the over 2.2 trillion yuan local government debt limit approved by the central government in 2023, an additional 1.2 trillion yuan has been approved for 2024 to support localities, especially high-risk regions, in defusing risks caused by existing debts and settling overdue payments owed to enterprises. Overall, local government debt risks have been mitigated, signaling further progress in risk defusing.

In general, the proactive fiscal policy has delivered remarkable results. It has provided effective support for the implementation of major national strategic tasks and has enabled the economy to achieve an overall stable performance while making progress. Currently, favorable conditions for China's economy remain unchanged, including its robust economic fundamentals, vast market size, strong economic resilience and huge potential. In the meantime, the country's economic performance has also encountered new situations and issues. For example, the growth rate for revenue of the national general public budget is lower than expected. Therefore, the public is concerned whether the country's annual budget target can be met. Here, I can assure you in a responsible manner that China's fiscal system is resilient enough and, by taking comprehensive measures, can achieve a balance between revenue and expenditures, meeting the annual budget target. Please don't worry!

In line with the decisions made at the meeting of the Political Bureau of the CPC Central Committee on Sept. 26, the MOF is expediting the implementation of confirmed policies. Building on this, we will further focus on stabilizing growth, expanding domestic demand and defusing risks. In addition, we will introduce a package of targeted incremental fiscal policy measures mainly in the following areas:

First, more effort will be made to support local governments with dissolving debt, increasing the debt ceiling on a relatively large scale and assisting local governments to alleviate hidden debt, so that they can have greater capacity and fiscal space to promote growth and ensure people's well-being.

Second, special treasury bonds will be issued to support large state-owned commercial banks in replenishing their core tier 1 capital. This aims to enhance the banks' risk resilience and lending capacity to better serve the development of the real economy.

Third, a set of tools will be applied, including local government special-purpose bonds, special funds and taxation policies, in a bid to support the property market in resuming growth and returning to stability.

Fourth, support for key groups will be increased. Before this year's National Day holiday, one-time living subsidies were distributed to people who are facing difficulties. Moving forward, the country will raise the standard of financial aid for college students, so as to enhance the overall capacity of consumption.

I'd also like to add that the fiscal counter-cyclical adjustments are certainly not limited to these four areas. These are just the policies that have already entered the decision-making process. We are currently also exploring other policy tools as well. For instance, the central government has a relatively large capacity for debt financing and raising the deficit.

That concludes my briefing. Next, my colleagues and I are more than happy to take your questions. Thank you.

Shou Xiaoli:

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

Xinhua News Agency:

The Political Bureau of the CPC Central Committee recently held a meeting and underscored the need to ensure necessary government expenditures. What specific measures will the MOF take in this regard? Thank you.

Lan Fo'an:

Thank you for the question. Since the beginning of this year, the MOF has earnestly implemented the proactive fiscal policy, appropriately enhanced the intensity of the policy as well as has improved its quality and effectiveness. We have also strengthened guarantees with funding for people's basic livelihood and other key sectors, while maintaining a robust level of government expenditures. As a result, fiscal operations have remained generally stable and orderly, with critical expenditures being better ensured. Here are some statistics for your reference:

From January to September, general public expenditures increased by 2% year on year to 20.18 trillion yuan. Specifically, spending on social security and employment rose by 4.3%; expenditures on education rose by 1.1%; expenditures on agriculture, forestry and water conservancy increased by 6.4%; expenditures on urban and rural communities rose by 6.1%; and housing support spending rose by 2.5%. In contrast, the national general public budget revenue is lower than the target set at the beginning of the year. Thus, we will take multiple measures and comprehensive policies to achieve a balance between revenue and expenditures. As I mentioned earlier, the MOF needs to raise fiscal revenue in accordance with laws and regulations, while also avoiding the collection of tax not prescribed by law and effectively safeguarding the rights and interests of business entities. In the meantime, the MOF will work to maintain a robust level of mandatory government expenditures as well as ensure necessary and sufficient funding for key sectors. It will better leverage the role of fiscal counter-cyclical adjustments and work to accomplish the country's annual economic and social development goals. Our measures in this regard lie in the following three aspects:

First, the MOF will effectively provide additional fiscal resources. The central government has allocated 400 billion yuan from carryover quotas for local government debts. The move aims to provide additional fiscal resources for local governments, supporting them in alleviating existing debt from government investment and settling overdue payments owed to private businesses. The MOF will encourage regions with favorable conditions to put idle assets into good use, to strengthen management of state-owned enterprises' profits and to work toward increasing fiscal revenue. The MOF will also guide local governments with using budget stabilization adjustment funds and other idle funds in accordance with laws and regulations to meet the demands of safeguarding government expenditures.

Second, the MOF will effectively ensure expenditures on key sectors. In line with the directive that Party and government institutions must get used to keeping their belts tightened, the MOF will strictly control general expenditures, directing more funds to address shortcomings, strengthen weaknesses and deliver benefits to the people, so as to ensure that key expenditures will not be reduced. As you can see from the figures mentioned earlier, expenditures on key sectors have all maintained a high level of growth. In addition, the MOF will strengthen support for expenditures on critical sectors such as science and technology as well as education. It will better implement polices related to people's well-being, such as raising the basic old-age benefits for rural and non-working urban residents and the annual per person government subsidies for basic public health services. The MOF will also effectively support key strategies such as all-round rural revitalization, green development and coordinated regional development, ensuring the sound implementation of various policies set by the CPC Central Committee.

Third, the MOF will fully and properly utilize various debt funds. At present, the use of additional treasury bonds is being accelerated, and ultra-long special treasury bonds are also being issued and utilized. In terms of special-purpose bonds, there is a total of 2.3 trillion yuan in special-purpose bond funds available for use from October to December of this year. This total is with the pending issuance quota and funds that have been issued but not yet put to use. The MOF will urge local governments to effectively make good use of various funds from bond issues, expedite project implementation and ensure the timely allocation of funds based on actual needs. By doing so, our aim is to achieve tangible results and to leverage local governments' empowering roles in driving investments. Thank you.

Nanfang Daily, Nanfang Plus:

Mr. Lan mentioned that the MOF will increase support for local governments to defuse hidden debt risks. Could you brief us on what measures will be taken and the next policy plans? In addition, there are rumors from the market that there will be fiscal policy quotas of several trillion yuan, and you just mentioned that you will significantly increase the debt ceiling to replace existing hidden debts of local governments. Could you provide more details in this regard? Thank you.

Lan Fo'an:

Thank you for your questions. Preventing and defusing local government debt is a major issue related to development and security, and the sustainable development of finance. Since 2015, the CPC Central Committee has required the establishment of sound and standard mechanisms for local governments to secure financing, opening wider the "front door" for local governments to raise funds in compliance with the regulations, while barricading the "back door" of borrowing money via methods that are illegal and against regulations, resolutely curbing the scale and expansion of hidden debt, steadily defusing existing debt, and effectively preventing debt risks. The MOF, along with relevant departments, has resolutely implemented and adopted a series of measures, including issuing local government bonds to replace outstanding debt, establishing closed-loop management for local government debt, promoting Beijing, Shanghai and Guangdong, where debt risks are relatively low, to achieve zero hidden debt, carrying out pilot debt relief projects in counties and districts with relatively high debt risks, and jointly preventing and defusing hidden debt risks of financing platforms, and strengthening the management of government investment projects with relevant departments. Party committees and governments at all levels have conscientiously assumed their principal responsibility, established a multi-departmental collaborative mechanism, coordinated the management of debts and the prevention and relief of debt risks, actively paid back debts by arranging fiscal funds and using assets and resources, and steadily defused government debt risks, making important progress.

Starting from the second half of 2022, debt risks and hidden dangers have emerged in some places due to various factors. In July 2023, a meeting of the Political Bureau of the CPC Central Committee stated that we should effectively guard against and defuse local debt risks, and formulate and implement a package of debt-clearing plans. The State Council established a work coordination mechanism to guide provinces to formulate specific debt-clearing plans. Relevant departments, Party committees and governments at all levels have stepped up their efforts and taken more pragmatic measures. The MOF set up a bond issuance quota of over 2.2 trillion yuan in 2023 to support localities and particularly high-risk areas, in addressing existing debt risks and clearing arrears owed to enterprises, alleviating the overall local government debt risks. Outstanding hidden debt registered on the government platform nationwide dropped 50% compared to five years ago at the end of 2023, and the risks are controllable.

Since 2024, after fulfilling relevant procedures, the MOF has arranged an additional 1.2 trillion yuan of quota to support local governments in clearing existing hidden debts and settling arrears to enterprises. In order to ease the pressure on local governments to defuse risks caused by debts, in addition to continuing to arrange a certain amount of quota in the new special bond limit each year to support the relief of existing government investment project debts, we planned to substantially raise the local government debt ceiling in one lump sum to pave the way for the replacement of existing hidden local debts, increase support for local governments to defuse debt risks. The relevant policies will be explained in detail to the public after going through the statutory procedures. It should be emphasized that this policy, which is about to be implemented, is the most powerful measure to support debt relief in recent years. This is undoubtedly a timely policy, and will greatly ease the burden on localities to defuse debt risks, release more resources for economic development, boost the confidence of business entities, and ensure that, at the primary level, basic living needs are met, salaries are paid, and governments function smoothly.

Next, the MOF will work with relevant departments to ensure that primary responsibilities of local governments in local debt clearing are fulfilled, guide local governments to steadily defuse hidden debt risks, and promote the transformation of financing platforms. At the same time, we will strictly investigate and hold to account those who violate laws and regulations on debt issuance and rectify them within a time limit. Any issuance of debt that is illegal or against regulations will be dealt with immediately, and those responsible will be held accountable to resolutely control the risk of hidden debt expansion.

As for the specific amount of policy arrangements you mentioned, we will make it public in a timely manner after going through the statutory procedures. Thank you.

TASS:

My question is about the real estate market. What are the considerations of fiscal policy measures in supporting the development of the sector? Thank you.

Lan Fo'an:

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

Liao Min:

Thank you for your question. Real estate is an issue of public concern. The MOF has worked in alignment with relevant departments to focus on promoting a balance between supply and demand in the real estate market, continuously optimizing fiscal and tax policies, promoting China's property market to return to a stable and healthy trajectory.

I will brief you on the policies that have been introduced in three areas: the demand side, the supply side and risk mitigation.

On the demand side, we are mainly working to support people's diverse housing needs and reduce housing costs. This includes the introduction of the phased personal income tax refund policy for "selling old and buying new" housing exchanges. For example, if the existing house is sold for 2 million yuan and the original value was 1 million yuan, the personal income tax payable is about 200,000 yuan, but if you sell it and then purchase another house worth more than 2 million yuan within one year, the personal income tax of 200,000 yuan already paid can be fully refunded. For another example, we have cooperated with relevant departments to cut the loan rates of individual housing provident fund by 0.25 percentage point. It is projected that this policy can save about 20 billion yuan in provident fund personal loan interest payments every year. These two policies have played an important role in reducing the financial burden on homebuyers and increasing housing demand.

On the supply side, we primarily support optimizing the provision of government-subsidized housing as well as securing people's basic livelihoods. Over the past three years, the central government has allocated 212.4 billion yuan in subsidies for government-subsidized housing projects and 280 billion yuan in central government budgetary investments. It has also coordinated local government special bonds to support the development of 6.66 million units of various types of government-subsidized housing that are aimed at meeting the basic housing needs of middle- and low-income urban groups, new urban migrants and young people. Additionally, we have supported the renovation of 160,000 old urban residential compounds, benefiting 27.25 million households, and have helped refurbished 4.2 million housing units in run-down urban areas, and urban villages and other dilapidated urban houses. This has played a crucial role in stabilizing investments, promoting consumption and improving people's livelihoods.

In terms of defusing risks caused by available housing, the MOF has collaborated in releasing the special loan policy for ensuring that overdue housing projects were completed, providing interest subsidies to 350-billion-yuan special loans. Since last year, we have pre-allocated 6.2 billion yuan in interest subsidies to safeguard the legitimate rights of homebuyers. We have also worked to enhance efforts to ensure the timely delivery of homes, to reduce available commodity housing, to leverage idle land and to prevent and mitigate risks in the real estate market, keeping expectations stable.

Regarding our next steps, the third measure that Mr. Lan just mentioned pertains to real estate policy. Moving forward, we will adhere to strictly controlling increase in new projects, optimizing available stock and improving quality. We will actively research and introduce policies that contribute to the stable development of the real estate market. Here, I'd like to share with you all three main considerations that the MOF has in mind:

First, we will allow the use of special bonds with land reserves. This is mainly due to the relatively large amount of idle, undeveloped land across the country. We will support local governments in using special bonds to acquire qualifying idle land reserves. Regions with pressing needs can also use these bonds for new land reserve projects. This policy can adjust the supply-and-demand balance within the land market, reduce idle land, better regulate and control land supply as well as ease liquidity and debt pressures on local governments and real estate companies.

Second, we will support the purchase of available housing to optimize the supply of government-subsidized housing. Considering that there is currently large completed yet unsold housing inventory, we will implement two supporting measures: One is to utilize special bonds to purchase available commercial housing that will be used as government-subsidized housing. The other is to continue using government-subsidized housing subsidy funds. Previously, these funds were primarily used to support new government-subsidized housing projects. Now, we are adjusting the focus by reducing the scale of new construction and supporting local governments in gathering government-subsidized housing sources through the absorption of available homes. These two measures will help reduce the unsold commercial housing inventory, balance supply and demand in the real estate market, and optimize the supply of government-subsidized housing to meet the needs of middle- and low-income groups.

Third, we will promptly optimize and improve relevant tax policies. According to the decisions and arrangements of the CPC Central Committee, we will clarify policies on value-added taxes and land appreciation taxes in line with the scrapping of standards for ordinary and non-ordinary housing. Moving forward, we will work out more policies to enhance support, adjust and optimize tax, and promote the stable and healthy development of the real estate market.

Promoting the stable development of the real estate market is a systematic project that requires the concerted efforts of various policies. In policy implementation, we will continue to strengthen synchronization between fiscal policy and other policies, enhance central-local coordination, and ensure the alignment between new and old policies. By employing a coordinated approach, we will unwaveringly work to stabilize the real estate market and curb further declines.

Thank you all.

National Business Daily:

We've noticed that some localities are facing increased pressure to ensure the "Three Guarantees" (guaranteeing basic living needs, payment of salaries and government functioning). Mr. Lan also mentioned the "Three Guarantees" earlier and they're something that people pay close attention to. What measures has the MOF taken this year to support local governments to ensure that, at the primary level, the "Three Guarantees" are met?"

Lan Fo'an:

Thank you for your question. Ensuring basic welfare, wages and government functioning, referred to as the "Three Guarantees," is a basic requirement for safeguarding the fundamental interests of the people and is also a core function of fiscal policy. In 2024, the MOF has continued to improve the management system for the "Three Guarantees," covering budget formulation, budget execution, dynamic monitoring and emergency response, and ensuring the stable operation of the "Three Guarantees" at the primary level. We have mainly taken the following four measures: First, we are strengthening fiscal support for the "Three Guarantees" at the primary level. In 2024, the central government has planned to allocate more than 10 trillion yuan in budgets for transfer payments to local governments and has urged local authorities to direct these funds to the primary level, prioritizing and fully funding budgets for the "Three Guarantees." Here, the term "primary" mainly refers to the county level. Second, we are establishing and improving work mechanisms. We follow the principle of "county-level responsibility, city-level assistance (as a safety net), provincial-level safety net and central-level incentives," ensuring that responsibilities are fulfilled at every level and that detailed emergency response plans for risks related to the "Three Guarantees" are in place. Third, we are enhancing treasury fund security. We have strengthened treasury management in financially struggling counties to ensure that funds for the "Three Guarantees" are available when needed. Fourth, we are strengthening monitoring of local fiscal operations. Leveraging an integrated budget management system, we now have real-time monitoring of all budget units and primary-level fiscal operations nationwide. We can clearly see how much treasury funds are available and track progress with the "Three Guarantees." We issue monthly risk alerts to local governments and urge them to take timely action when addressing any issues.

Overall, the "Three Guarantees" at the primary level are generally stable, although some areas are facing increasing fiscal pressures. Based on national estimates of financial resources at the primary level, the foundation for supporting the "Three Guarantees" is secure. For example, in 2023, around 50% of available local fiscal resources were allocated to the "Three Guarantees." When factoring in other mandatory expenditures, this figure rises to around 80%. The increased pressure in some regions is largely due to slower fiscal revenue growth, declining land transfer income, and the burden of local government debt.

Looking ahead, the MOF will continue to take practical and effective measures, establish a "Three Guarantees" checklist, and build a long-term mechanism to secure the bottom line at the primary level. The following five specific measures will be implemented:

First, clarifying responsibilities. Local Party committees and governments at all levels are the primary entities responsible for ensuring the "Three Guarantees" in their areas and they should regularly review and improve their support mechanisms. Functional departments are accountable for implementing policies within their fields and will work closely with financial departments to coordinate their efforts.

Second, boosting local financial resources. The central government will continue to increase general transfer payments to local governments through the annual budget. As mentioned earlier, this year, 400 billion yuan in debt limits were allocated to local governments to supplement their comprehensive financial resources, which is important for ensuring the "Three Guarantees." We will also streamline and standardize special transfer payments, optimize their structure, increase the share of general transfer payments, expand local tax bases, and moderately increase local tax management authority to enhance local financial autonomy.

Third, improving fund allocation. We will closely monitor local revenue, expenditure and cash balances. For areas facing tight cash flow, the central government will provide support by advancing fund allocations. Provincial financial departments will be urged to strengthen monitoring and ensure sufficient funds at the primary level, prioritizing the meeting of basic living needs, payment of salaries, and smooth functioning of governments.

Fourth, easing debt pressure. We will intensify efforts to restructure the hidden debt of local governments. As previously mentioned, we plan to implement a sizable debt limit, details of which will be released to the public once the legal procedures are completed. Additionally, we will allocate part of the annual local government special bond quota to supplement government funds, helping local governments manage debt risks.

Fifth, enhancing dynamic monitoring. We will establish an information-driven, intelligent monitoring system that covers the entire process of the "Three Guarantees." This system will track potential risks in real time, issue early warnings, and ensure problems are detected and addressed promptly. Thank you.

Reuters:

How can China's proactive fiscal policy be more effective in boosting consumption and preventing deflationary risks? Additionally, is there an estimate for the scale of this fiscal policy package? And how much room is there for the central government to leverage its finances?

Lan Fo'an:

Thank you for your questions. This year, we have focused more on the counter-cyclical role of proactive fiscal policy, maintaining strong fiscal spending, and continuously working to stimulate consumption and expand effective demand, especially in areas like boosting domestic demand, stimulate consumption and improving people's livelihoods. We have been actively working in three main areas:

First, increasing household income through a range of measures. We have steadily raised social security levels. In 2024, the minimum standard for basic pensions for urban and rural residents has been further increased, which was the largest increase in history. Pension levels for retirees have also been raised by around 3%, and per capita government subsidies for urban and rural residents' health insurance have been significantly increased. In addition to improving the tiered social assistance system, we distributed one-time living allowances before the National Day holiday to disadvantaged groups and individuals, such as people in extreme difficulties and orphans, to boost their incomes and enhance their capacity and willingness to spend.

Second, expanding government investment through multiple channels. As mentioned earlier, the issuance of 1 trillion yuan in ultra-long special treasury bonds, an additional 3.9 trillion yuan quota for local government special bonds, and 700 billion yuan in central government budget investment in 2024, combined with the additional government bonds issued in 2023, the total funds available for increasing government investment have significantly increased compared to last year, driving effective investment and expanding domestic demand.

Third, implementing the policy of large-scale equipment upgrades and consumer goods trade-ins. We have allocated around 300 billion yuan in ultra-long special treasury bonds, with local governments beginning to roll out specific operational measures since late August and early September. These measures focus on supporting key sectors, particularly equipment upgrades, enhancing local capacity to replace old consumer goods with new ones, driving investment growth, unlocking consumption potential and promoting industrial development.

Looking ahead, the MOF will continue to focus on targeted, precise policies. We will optimize fundamental policy mechanisms, improve residents' income expectations, and stimulate consumption potential. We will also make better use of special funds and interest subsidies on loans, improve the trade and circulation system, and enhance the consumption environment. Additionally, we will leverage government bonds to drive effective investment and expand domestic demand.

As for your second question regarding the central government's potential for fiscal leverage, I mentioned earlier that the central government has considerable room to increase debt and raise the deficit. Moving forward, we will follow the decisions of the CPC Central Committee, balance development and security, and take into account such factors as the economic situation, macroeconomic needs and the fiscal position. We will use debt policy tools appropriately to promote sustained economic development. Thank you.

Yicai:

Recently, the MOF has been studying the introduction of new measures for managing special bonds. Could you provide an update on the issuance and use of special bonds since the beginning of this year? What steps will be taken to strengthen management going forward? Thank you.

Lan Fo'an:

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

Wang Dongwei:

Thank you for your question. In recent years, the MOF, along with relevant departments, has established and improved policies and systems for managing special bonds. We've guided local governments to enhance the quality of special bond projects. These bonds have played a crucial role in driving effective investment and stabilizing the macroeconomy. Since 2020, we've allocated a total of 18.7 trillion yuan for new special bonds, supporting about 130,000 government investment projects. As Mr. Lan mentioned earlier, in 2024, we have allocated 3.9 trillion yuan for new special bonds, the largest amount ever.

We've focused on leveraging government investment more effectively, and carefully organizing the allocation, issuance and use of special bonds. We've increased support for major economically developed provinces to use funds raised from the sale of special bonds. These funds will be weighed toward regions where projects are well-prepared and investments are more effective. We've also reasonably allocated special bond quotas to other regions to complete ongoing projects and implement national strategic initiatives. We've guided local governments to accelerate bond issuance and use, strengthening coordination and providing updates every 10 days. As of late September, 3.6 trillion yuan in new special bonds had been issued nationwide, 92.5% of the annual quota.

Building on this work, we aim to expand the scope of the use of special bonds, improve management mechanisms, maintain government investment intensity and pace, reasonably reduce financing costs, and promote high-quality development. Specifically, there are three key areas:

First, expanding the scope. This involves three main aspects. First, we will research and improve the management of lists of investments using funds from the sale of special bonds, increasing areas where funds can be used as project capital to maximize their usage. Second, we will make good use of special bonds to support the acquisition of existing commercial housing for affordable housing, as Mr. Lan and Mr. Liao mentioned, to support healthy real estate market development. Third, we will reasonably support forward-looking, and strategic emerging industry infrastructure to accelerate the development of new quality productive forces.

Second, strengthening mechanisms. We're studying ways to improve project management, creating a "green channel" for ongoing projects to ensure smooth transitions from planning to implementation. This will accelerate the issuance and use of special bonds, speed up project construction, and quickly generate tangible results. The goal is to effectively leverage government investment to guide and drive economic growth.

Third, tightening management. This involves three main aspects: First, we will improve the full lifecycle management of special bonds from borrowing to repayment, strengthen oversight of bond fund expenditures, and ensure project departments and units fulfill their responsibilities. Second, we will improve the management of asset account books for special bond projects, managing project assets by category to ensure a balance between government debt and project assets. Third, we will explore early repayments of special bonds, studying the establishment of a debt service reserve system to secure repayment sources. Thank you.

The Beijing News:

I have a question regarding students' financial aid policies. We've noticed that the MOF is currently studying ways to improve the financial aid system for college students, which is an important part of incremental policies. We'd like to know what new policies and measures are planned for the near future. Thank you.

Lan Fo'an:

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

Guo Tingting:

Thank you for your question. In recent years, the MOF, along with the Ministry of Education and other relevant departments, has continuously improved the student financial aid system covering all educational stages. We've steadily increased investment and gradually raised assistance standards to support students in focusing on their studies and personal development. Currently, China has established a comprehensive aid system led by the government with active participation from schools and the public. This system mainly includes state scholarships and grants, government-subsidized student loans, tuition reductions, living allowances and work-study programs. In 2023, government investment reached 93.2 billion yuan nationwide, benefiting over 31 million college students. Through policies such as loan interest subsidies, we supported banks in issuing 70 billion yuan in government-subsidized student loans.

As Mr. Lan mentioned earlier, in the next step, we will work with relevant departments to adjust and improve student financial aid policies in higher education in two phases, focusing on rewarding excellence and assisting those in need. In the first phase, we will introduce the following policies and measures in 2024:

First, the number of National Scholarship recipients will double. For undergraduate and junior college students, the number will increase from 60,000 to 120,000 per year. For master's students, it will rise from 35,000 to 70,000 annually, and for doctoral students, from 10,000 to 20,000 per year.

Second, scholarship funding standards for undergraduate and junior college students will be raised. The National Scholarship will rise from 8,000 yuan to 10,000 yuan per student annually, while the National Encouragement Scholarship will increase from 5,000 yuan to 6,000 yuan per student each year.

Third, the National Grant for undergraduate and junior college students will be raised. Starting in fall 2024, the average subsidy will increase from 3,300 yuan to 3,700 yuan per student annually.

Fourth, we will enhance support for national student loans. Loan amounts will increase, with the maximum loan for undergraduate and junior college students rising from 16,000 yuan to 20,000 yuan per student annually, and for graduate students from 20,000 yuan to 25,000 yuan. Additionally, interest rates will be lowered, set at 70 basis points below the market quotation rate for loans of the same category during the same period.

In the second phase, we will raise the standards for graduate academic scholarships in 2025. Additionally, the subsidy standards for the National Grant Program for regular high school students and secondary vocational school students will be increased, along with an expansion of coverage.

Moving forward, we'll collaborate with relevant departments to promptly introduce related policies and ensure their effective implementation. We'll make sure that funds are distributed to students in a timely manner, allowing the policies to take effect quickly and enabling students to benefit as soon as possible. Thank you.

21st Century Business Herald:

In 2024, China issued 1 trillion yuan in ultra-long special treasury bonds to fund critical national strategies and enhance security capabilities in key areas. How will the funds from these ultra-long special treasury bonds be effectively managed and utilized? Thank you.

Lan Fo'an:

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

Wang Dongwei:

Thank you for your question. Issuing ultra-long special treasury bonds to support critical national strategies and enhance security capabilities in key areas is an important fiscal policy this year. With a focus on effective implementation, the MOF promptly established a dedicated task force to ensure smooth coordination and orderly progress. First, we worked to ensure effective fundraising. By considering project timelines and bond market demand, we strategically designed bond types and established a reasonable issuance pace to meet project requirements, while avoiding idle funds and reducing costs. As of September's end, 752 billion yuan of ultra-long special treasury bonds had been issued, with rates remaining generally stable. Second, we accelerated fund allocation, promptly allocating budgets and disbursing funds based on project lists. Third, we strengthened fund oversight. Recently, the MOF issued interim measures for supervising these funds, listing specific requirements such as establishing a full life-cycle management system, implementing separate account management, setting up a debt repayment reserve fund, and strengthening performance management. We will adopt more rigorous and more concrete measures to ensure that the bonds are effectively managed and utilized.

Moving forward, we'll complete the issuance of 1 trillion yuan in ultra-long special treasury bonds as scheduled, promptly allocating budgets and disbursing funds. We'll strictly enforce fund supervision by establishing a coordinated oversight mechanism with industry regulators and local finance departments. We'll enhance tracking and monitoring, prohibit misappropriation of funds, and promptly address any violations, ensuring that these funds are used safely, properly and efficiently. Thank you.

Shou Xiaoli:

Please continue to ask questions. I see many more hands raised, but due to time constraints, we will take the last two questions.

CCTV:

As we just heard, Mr. Lan mentioned the plan to issue special treasury bonds to supplement the core Tier 1 capital of large state-owned commercial banks. Could you please explain the specific policy considerations behind this decision, and how will it be implemented going forward? Thank you.

Lan Fo'an:

I'd like to invite Mr. Liao to answer your questions.

Liao Min:

Thank you for your questions. Large state-owned commercial banks act as the main force to serve the real economy and the ballast to ensure financial stability. Currently, the six large state-owned commercial banks — Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China — are operating steadily overall, with stable asset quality and sufficient provisions. Their key indicators are all within a "healthy range" according to international best practices. Notably, owners' equity has continued to grow, reaching 15.1 trillion yuan by the end of June 2024, a 2.9% increase from the beginning of the year. Capital strength is relatively robust, with an average core Tier 1 capital adequacy ratio of 12.3% as of the end of June 2024.

Large state-owned commercial banks, along with other financial institutions, bear the critical responsibility of supporting high-quality economic development and implementing key tasks concerning technology finance, green finance, inclusive finance, pension finance, and digital finance. Capital is the lifeblood of commercial banks' sustainable operations and is fundamental to promoting the growth of the real economy, facilitating economic restructuring, and guarding against various risks. As we know, in recent years, some small and medium-sized local banks have replenished their capital. Under current circumstances, we believe it's necessary to support large state-owned commercial banks in further increasing their core Tier 1 capital through appropriate channels. This will not only improve banks' capacity for prudent management but also amplify the leverage effect of capital, boosting lending capacity and enabling greater support to the real economy. This will offer stronger backing for the sustained recovery of the macroeconomy and help bolster market confidence.

Authorized by the State Council, the MOF is responsible for the unified performance of the function of state-owned financial capital investors, which includes establishing mechanisms for capital replenishment and dynamic adjustment for state-owned financial institutions. The MOF, adhering to the principles of marketization and the rule of law as well as the approach of "coordinated advancement, phased implementation and tailored strategies," will actively raise funds through channels, such as issuing special treasury bonds, to prudently and orderly support large state-owned commercial banks in further increasing their core tier-1 capital. We believe that through this initiative, the operating and profit-making capabilities of large state-owned commercial banks will be enhanced, thereby promoting the steady and sustained development of the entire national economy.

I'd like to inform you all of the most recent developments: the initiative has been launched. The MOF, in conjunction with relevant financial regulatory authorities, has established an inter-departmental working mechanism to efficiently assist large state-owned commercial banks in expediting the completion of related tasks. We are now awaiting the submission of specific capital replenishment plans from each bank, and all work is progressing in an orderly manner. Furthermore, I'd like to clarify that large state-owned commercial banks, as listed banks, will disclose their specific capital replenishment plans promptly and in compliance with relevant regulations. Thank you.

Shou Xiaoli:

The last question.

China Daily:

The third plenary session of the 20th CPC Central Committee made important arrangements for deepening the reform of the fiscal and tax systems. Could you please tell us what specific measures the Ministry of Finance will introduce next? Thank you.

Lan Fo'an:

Thank you for your question. The question of reform is of significant concern to everyone, especially after the third plenary session of the 20th CPC Central Committee made important arrangements for deepening the reform of the fiscal and tax systems. The session clearly outlined reform requirements such as "improving the budget system," "making taxation systems more conducive to high-quality development, social fairness and the building of a unified market," "establishing 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" and "improving the systems for managing government debt." The Ministry of Finance is diligently studying the guiding principles of the third plenary session of the 20th CPC Central Committee, considering the effective implementation of reform tasks as a top priority in the present and future periods and is steadily advancing forward. Throughout the reform's implementation, we will focus on properly handling the relationships between the government and the market, the central and local governments, efficiency and fairness, overall and local interests, and long-term and current considerations. We strive to transform the strategic deployment of comprehensively deepening reform into a powerful force for advancing China's modernization. Specifically, there are three points:

First, we will promptly introduce the implementation plan for reform. We will adhere to problem-oriented and goal-oriented approaches, ensuring that the accelerated advancement of reforms is integrated with our efforts to strengthen scientific management of public finances. We will actively respond to public and grassroots concerns, elaborating on specific task lists for each reform task outlined in the plenary session and clearly defining timelines and priorities. We have preliminarily developed an implementation plan for deepening the fiscal and tax system reform, which will serve as the "blueprint" for future reforms.

Second, we will accelerate the implementation of reform measures. We adhere to a phased and step-by-step approach to steadily promote reforms, planning as a whole deadlines for the implementation of various reform measures. We plan to roll out this and next year a batch of mature and tangible reform measures, especially fundamental institutional reforms that are crucial for top-level design. These include improving the budget system, refining the fiscal transfer payment system and establishing a government debt management system with Chinese characteristics that aligns with high-quality development. This will gradually establish a reform outcome system where fundamental institutional reforms take the lead, followed by successive measures in specific areas.

Third, we will emphasize the combination of top-level design and grassroots exploration. Building upon clear reform principles and directions, we encourage and support relevant parties to innovate reforms based on local conditions. We have organized pilot projects for zero-based budgeting reform in central departments and plan to initiate trials for scientific fiscal management in certain regions. We will tailor reform pilots' content based on the characteristics of different regions and departments. With full respect to a pioneering spirit, we'll summarize reform experiences, replicate and promote them in a timely manner so as to intensify reforms in line with the times.

Next, the MOF will continue to implement reforms with relentless perseverance to actively and steadily form a favorable pattern where fiscal macro-control is more targeted, the budget system is more sound, the tax system is more optimized, the fiscal system is more perfected and fiscal development is more sustainable. Efforts will be made to provide a more solid fiscal guarantee for building China into a great modern socialist country in all respects through a Chinese path to modernization.

Thank you!

Shou Xiaoli:

Thank you, Minister Lan, thank you to all of the presenters and thank you to all friends from the media for your participation. That concludes today's press conference. Goodbye!

Translated and edited by Xu Xiaoxuan, Yuan Fang, Zhu Bochen, Wang Qian, Yan Bin, Mi Xingang, Wang Yanfang, Guo Yiming, Xiang Bin, Liu Caiyi, Wang Wei, Chen Xinyan, Huang Shan, 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.

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Read in Chinese

Speakers:

Mr. Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC)

Mr. Liu Sushe, vice chairman of the NDRC

Mr. Zhao Chenxin, vice chairman of the NDRC

Mr. Li Chunlin, vice chairman of the NDRC

Ms. Zheng Bei, vice chairwoman 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:

Oct. 8, 2024 

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are very pleased to invite Mr. Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC), to brief you on the systematic implementation of a package of incremental policies designed to solidly promote economic growth, structural optimization and sustained development momentum. Also present today are NDRC vice chairpersons Mr. Liu Sushe, Mr. Zhao Chenxin, Mr. Li Chunlin and Ms. Zheng Bei. Now, I will give the floor to Mr. Zheng for his introduction.

Zheng Shanjie:

Friends from the media, good morning. I am very glad to attend today's press conference.

On Sept. 26, the Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting to analyze and study the current economic situation and make further arrangements regarding economic work, introducing a package of incremental policies. This fully demonstrates the significant importance that the CPC Central Committee with Comrade Xi Jinping at its core places on economic work, and fully showcases the confidence and determination to promote sustained economic recovery and growth. On Sept. 29, the State Council held an executive meeting, which made arrangements for the implementation of the package of incremental policies.

Today, I would like to take this opportunity to brief you on the subject of the comprehensive implementation of the decisions and arrangements of the CPC Central Committee and the State Council, systematically implementing a package of incremental policies. Following that, my colleagues and I will answer questions you may have. Let me first update you on two aspects:

First, regarding the current economic situation.

We believe that to accurately grasp the actual situation of China's economy, it is necessary to be comprehensive, objective and calm. We need to observe the macro picture and development trends, and to consider both the current situation and future prospects.

From a macro perspective, China's economy is generally stable and making steady progress, despite facing an increasingly complex domestic and international environment. New quality productive forces are forming more rapidly, the people's well-being is continuously being strengthened, and new progress has been made in preventing and resolving risks in key areas. High-quality development is being deeply advanced, and overall social stability has been maintained.

We can succinctly summarize the situation with two keywords: "stability" and "progress." Stability is primarily evident in the overall economy. On the supply side, agricultural production remains stable, with another bumper harvest expected this year. Industrial growth has been relatively robust, with the value added by industrial enterprises above designated size increasing by 5.8% year on year in the first eight months. Key drivers, such as the output of new energy vehicles and integrated circuits, grew by 31.3% and 26.6%, respectively. The service sector has maintained a stable growth momentum, with the index of service production (ISP) increasing by 4.9%. Among these, the ISP for information transmission, software and information technology services grew by 11.9%, while the ISP for leasing and business services increased by 7.7%. In terms of market demand, investment and consumption continue to grow. Manufacturing investment, which is crucial for long-term prospects, and supports and benefits sustainable development, increased by 9.1%, outpacing overall investment by 5.7 percentage points. Efforts to promote large-scale equipment renewals and trade-ins of consumer goods are yielding outstanding results, with a relatively fast rebound in automobile and home appliance sales recently. It is expected that in September, retail sales of passenger cars by major carmakers will increase by 10% compared to the previous month. In the first eight months, exports priced in RMB grew by 6.9%. Regarding employment and prices, the employment situation remained stable, with 9.44 million new urban jobs added in the first eight months, which is an increase of 200,000 compared to the same period last year. The consumer price index (CPI) rose by 0.2% year on year, with a 0.6% increase in August alone. Progress is mainly reflected in structural optimization. New drivers of growth are accelerating their growth and expansion, with high-tech manufacturing and equipment manufacturing value-added increasing by 8.9% and 7.6%, respectively, in the first eight months. The structure of the three major demands is becoming more optimized, and continuous improvements and breakthroughs are being made in some key areas. The advancement of new urbanization and coordinated regional development is being further promoted, with major economically developed provinces effectively shouldering greater responsibilities.

While acknowledging the achievements, successes and highlights of economic development, we are also confronting existing difficulties and problems. On one hand, the external environment has become increasingly complex and severe. According to the latest forecast by the International Monetary Fund (IMF), global economic growth this year is projected to be 3.2%, which is lower than last year. Major economies are experiencing weak growth momentum and heavy debt burdens. Recently, there has been a general trend of interest rate cuts, leading to significant volatility in international markets, increased global trade protectionism, and a rise in uncertain and unstable factors. All these could adversely impact China through trade, investment and financial channels. On the other hand, domestic economic downward pressure has increased, with fluctuations in main economic indicators such as industry, investment and consumption since the third quarter. Some industries are experiencing intense internal competition, while some enterprises are still not adapting to optimization, upgrading or transformational development changes. Additionally, some are increasing production without increasing revenue or profits, others are finding production and operations quite challenging, and there remain considerable risks and hidden dangers in some areas.

Upon comprehensive analysis, and from the perspective of development trends, the fundamentals of the Chinese economy have remained unchanged. Favorable conditions such as large market potential and strong economic resilience persist. With the continued release of effects from existing policies, especially with the introduction and implementation of incremental policies, recent market expectations have significantly improved. The purchasing managers' index (PMI) for manufacturing has rebounded quickly, the stock market is warming up and rising, and market consumption during the National Day holiday was robust. We are fully confident in achieving the annual goals for economic and social development and in maintaining sustained, stable and healthy development of the economy and society.

Second, regarding considerations for implementing the package of incremental policies.

In response to new situations and issues in the current economic operations, the CPC Central Committee and the State Council have made sound decisions and acted decisively. While effectively implementing existing policies, they have focused on five areas: intensifying countercyclical adjustments of macro policies, expanding effective domestic demand, increasing assistance and support for enterprises, reversing the downturn of the real estate market and stabilizing it, and boosting the capital market. A package of incremental policies will be robustly introduced to promote sustained economic recovery and growth. We are not only focused on addressing the immediate difficulties and problems, but also pay more attention to solving significant issues in medium- and long-term economic development. This includes strengthening efforts to build a strong foundation, ensuring long-term benefits and sustainability, and making steady progress to promote high-quality development.

The package of incremental policies reflects three areas of greater emphasis: improving the quality of economic development, supporting the healthy development of the real economy and business entities, and coordinating high-quality development with high-level security. The planning and formulation of these policies also exhibits "four persistences." First is the persistence in goal orientation, anchoring the annual goals and tasks, making full use of policy space, and striving to stimulate greater development potential. Second is the persistence in problem orientation, focusing on business entities and societal concerns, addressing the difficulties in economic and social development as well as in enterprises' production and operations, and adopting more targeted measures. Third is the persistence in systematic policy implementation, coordinating across fiscal, financial, consumption, investment, real estate, stock market, employment and social welfare policies to enhance the consistency of macroeconomic policies and strengthen policy synergy. Fourth is the persistence in combining short- and long-term strategies, coordinating the transition of policies from this year to next to promote sustained, stable and healthy economic development and to ensure a successful conclusion of the 14th Five-Year Plan.

The implementation of an incremental policy package involves comprehensive and systematic work that should be precisely targeted to enhance effectiveness and sustainability. Specifically, there are five targeted approaches. First, to cope with downward economic pressure, we will advance macro policies for countercyclical adjustments through concerted and continued efforts. Second, to address issues such as insufficiency in effective domestic demand, we will focus on improving people's well-being and promoting consumption when implementing incremental policies for boosting domestic demand, effectively driving growth through making investments. Third, in view of the current difficulties in the production and operation of some enterprises, we will increase assistance and practically improve the business environment to help them overcome these challenges. Fourth, eyeing the weak real estate market, we will introduce comprehensive policies and measures to stabilize the market and avoid further decline. Fifth, in response to the stock market's previous downward spiral, we will launch effective measures to boost the capital market.

Next, we will work with various departments and localities to fully and quickly implement decisions and arrangements made by the CPC Central Committee and the State Council, implementing an incremental policy package through a holistic approach to create a policy synergy. We will solve issues that hinder the implementation of policies to solidly promote economic growth, structural optimization and sustained momentum for development. Our goal is for the policies to take effect within the year as well as to ensure the successful conclusion of the 14th five-year plan period in the coming year and a good start for the 15th five-year plan period. That's all for my briefing. Thank you. 

Shou Xiaoli:

Thank you, Mr. Zheng. The floor is now open for questions. Please first identify the news agency you represent. Now, you may raise your hands to ask questions.

CCTV:

Hello, Mr. Zheng. Your opening remarks mentioned implementing the incremental policy package that was decided on at a meeting of the Political Bureau of the CPC Central Committee, which entails coordination between the fields of fiscal, finance, consumption and investment. Could you please elaborate on the specific measures that will be taken to fulfil this policy package? Thank you. 

Zheng Shanjie:

Thank you for the question. This policy package involves systematic and comprehensive work and has recently gained special attention. I just explained our primary approaches to implementing the incremental policy package. Now, I will give detail on the specific measures for systematically implementing these policies. There are mainly five aspects. 

I. Implementing macro policies with increased effort and improved effectiveness.

First is to strengthen macro policies for countercyclical adjustments. We will enhance the coordination and integration of macro policies in the fields of fiscal, tax revenue, monetary, finance, investment, consumption and income distribution. We will boost the coordination and innovation of policy tools, ensure the timeliness, intensity and effectiveness of policy implementation as well as enact a combination of policies to create a multiplied effect. We will ensure necessary fiscal spending and accelerate spending to significantly boost economic development. We will offer more support to local authorities with debt swaps so as to defuse related risks. We will lower the reserve requirement ratio (RRR), implement significant interest rate cuts and support large state-owned commercial banks in replenishing the core tier-1 capital, thus improving the financial environment for the investment and financing of business entities and for the implementation of macro policies. Recently, we have released policies to lower the RRR and interest rates. Other financial policies are also on the way. 

Second is to accelerate the implementation of major reform measures. The third plenary session of the 20th CPC Central Committee specified more than 300 important reform measures, with related tasks' progressions being gradual and orderly. We will quickly launch a series of reform measures which are ready for implementation to bring tangible and accessible benefits that will contribute to the sustained, healthy development of the economy. For example, we will formulate guidelines for building a unified national market, issue new versions of negative lists for market access, establish mechanisms to boost investment in future industries, improve systems for deepening integration of the real and digital economies, and release opinions on improving the social credit system. Meanwhile, we will increase efforts in attracting and stabilizing investments, seize the initiative by expanding opening up, revise and expand the indexes of industries that we encourage foreign businesses to invest in, launch major projects with foreign investments and further ease visa-free transit policies. 

Third is to improve the consistency of macro policy orientation. We will make good use of related assessment mechanisms to improve the consistency and compatibility of policies from various fields regarding the objectives, tools, intensity, timing and pace of implementation. Before a policy is released, it should go through an assessment to verify consistency as well as thorough research and appraisal. When a policy is being executed or adjusted, the consistency of macro policy orientation should be maintained. After a policy has been implemented, we will review and evaluate its impact in a timely manner. Through all these processes, any inconsistency in macro policy orientation will trigger prompt adjustments or temporary suspension. 

II. Further expanding domestic demand.

In terms of consumption, the key is to combine the promotion of consumption with improved well-being. We aim to increase the income of middle- and low-income groups while taking actions to boost consumption. This involves three aspects of work. First is to reinforce support for special groups. Before National Day, we handed out one-time living allowances to people with special difficulties and orphans. We will increase standards for student subsidies, expand the coverage of policies as well as raise the ceiling of national student loans for college and university students and post graduates. We will also strive to lower loan interests. Second is to continue expanding bulk consumption by promoting large-scale equipment renewals and consumer good trade-ins, which is conducive to releasing demand potential, conserving energy and reducing carbon emissions so as to promote a comprehensive green transformation. Currently, a wide range of detailed measures facilitating consumer good trade-ins have been issued, related funds have been fully allocated and comprehensive policies have been put into place. Retail sales of passenger vehicles have rebounded significantly. Sales of home appliances have ceased to decline and have started to increase. We will intensify the implementation of related policies to further increase the consumption of goods. Third, we will boost the use of services such as care for children and the elderly, two areas of wide public concern. We will support and regulate non-governmental actors with developing related industries, quickly refine the policy system for boosting the birth rate and improve basic public services for childbirth and pediatric medical care. We will cultivate new consumption forms such as digital and green consumption and better meet medium-to-high-end market demands by enhancing supply-side adaptation.

In terms of investments, the focus should be on expanding effective investments to quickly make concrete progress. This involves three aspects. First, we will make full and good use of all kinds of funds that have been allocated this year. For now, a total of 700 billion yuan in investments from the central budget have been fully allocated. The one trillion yuan in ultra-long special treasury bonds, earmarked for implementing major national strategies and building up security capacity in key areas, as well as promoting large-scale equipment renewals and consumer good trade-ins, has been completely channeled to various projects and localities in order to accelerate project progress and fund appropriation. We will accelerate the issuance and use of special-purpose bonds by local governments to facilitate the construction of projects. Second, we will prepare and release in advance the project list for major national strategies and building up security capacity in key areas as well as the investment plan within the central budget for next year. Analysis shows that incremental funds are in high demand in the fields of continued infrastructure construction, granting permanent urban residency to eligible people who have moved to cities from rural areas, high-standard cropland development, underground pipeline construction and urban renewal projects. In the next year, we will continue to issue ultra-long special treasury bonds and optimize their use to strengthen support for implementing major national strategies and building up security capacity in key areas. Before the end of this year, we will release the 100-billion-yuan investment plan within central budget and the 100-billion-yuan project list for implementing major national strategies and building up security capacity in key areas for the coming year, with the aim to support different localities with accelerating preliminary work and starting construction ahead of schedule. Meanwhile, an important effort that is related to this is to accelerate the promotion of people-oriented new urbanization. Third, we will optimize and implement major investment policies. We will step up research on properly expanding the scope of use for funds raised from special-purpose bonds, permitting a greater share of such funds to be used as capital in more sectors and on a larger scale. We will release, at the earliest possible date, specific reform measures to appropriately expand the scope of use for funds raised from the sale of local government special-purpose bonds. We will further motivate non-government investors, effectively implement a new mechanism for cooperation between government and private capital to encourage private investment in new types of infrastructure. 

III. Strengthening support for businesses.

First, we will standardize law enforcement and regulations related to enterprises. We will further regulate administrative law enforcement that is related to businesses, adopting a more inclusive, prudent regulatory approach and a more flexible approach toward law enforcement. Law enforcement must not cross regional boundaries in violation of regulations, nor should it be conducted for profit. Penalties, inspections and seizures must strictly follow legal procedures. We will also promptly issue warnings to regions where penalty and confiscatory income shows abnormal growth and will conduct supervision if necessary. Meanwhile, we are expediting efforts to make a law on boosting the private sector to foster a more favorable environment for non-public sector development.

Second, we will make clear the follow-up arrangements of interim policies in advance. Based on our review, by the end of the year, certain measures, such as supportive tax and fee policies, unemployment insurance related policies to support businesses and stabilize employment, and skill development subsidies, will expire. Relevant departments will determine, based on research and evaluation, whether to extend these policies and for how long. Policies inducive to business operations and healthy development will only be extended, not limited.

Third, we will ensure the proper allocation of production factors. The policy of loan renewals without repayment of principal, previously applicable to small and micro-sized enterprises, has already been extended to medium-sized enterprises. More enterprises will benefit from this policy. Recently, the NDRC and the National Financial Regulatory Administration have jointly established a coordination mechanism to support financing for small and micro-sized enterprises, guiding financial institutions to provide financing support based on market-oriented principles and aiming to ensure that all eligible loans are granted. Meanwhile, we are exploring the possibility of separately managing the energy consumption of certain eligible major projects under the 14th Five-Year Plan and encourage different localities to increase renewable energy consumption by purchasing green electricity and renewable energy certificates.

IV. Promoting the stabilization and recovery of the property market. 

Systematic and comprehensive measures, including strictly controlling new commercial housing developments, optimizing existing housing projects and improving construction quality, will be implemented. We will intensify the use of the "whitelist" policy for housing projects eligible for loans, utilize special-purpose bonds to revitalize idle land and adjust restrictions related to purchasing housing in order to stimulate demand of both first-time homebuyers and those seeking to improve their living conditions. Additionally, we will accelerate the sale of existing unsold homes, lower interest rates on existing housing loans, speed up improvements to policies related to taxation, land and financing, as well as promote the establishment of a new model for real estate development. Policies to lower interest rates on existing housing loans have already been introduced. Some cities have fully lifted restrictions on purchasing housing, while others have further reduced areas of purchasing restrictions or have eased purchasing restrictions. Other policies are actively being planned and implemented. 

V. Striving to bolster the capital market. 

Relevant departments will implement a series of strong and effective measures to attract medium and long-term capital into the market, remove the obstacles for social security, insurance and wealth management funds to invest in the capital market, support mergers, acquisitions and reorganizations of listed companies, and steadily advance the reform of mutual funds. Additionally, we will explore and introduce policies to protect medium and small-sized investors. All of these policies are being accelerated.

Next, we will closely monitor the situation, evaluate the effectiveness of policies and explore new incremental policies in a timely manner. We will conduct further policy research, reserve additional policy options and maintain consistency between this year's and next year's policies and government efforts, solidly promoting economic growth, structural optimization and sustained momentum of development. Thank you. 

Cover News:

Mr. Zheng just mentioned the need to expand effective investments. Could you elaborate on the follow-up policies and measures that will be implemented to ensure timely investments and concrete results? Thank you.

Zheng Shanjie:

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

Liu Sushe:

Thank you for your question. Since the start of this year, we have been focusing on key sectors and critical areas, leveraging government investment's guiding and driving role to fully stimulate social investment and expand effective investments. Let me share some data to give you an overview of this year's situation.

Almost all of the nearly 6 trillion yuan of government investment for this year has been allocated to specific projects, which are now progressing to yield tangible results. All of the 700 billion yuan of central government budgetary investment for this year has been assigned to specific projects, with 58% of them already in the works. Out of the 1 trillion yuan ultra-long special treasury bonds, a total of 700 billion yuan has been allocated for implementing national key strategies and building up security capacity in key areas (two major initiatives), with 50% of related projects having commenced. As for the 3.12 trillion yuan in special-purpose local government bonds for project construction this year, by the end of September, 2.83 trillion yuan, or 90%, had been issued, with 85% of the projects already started. The 1 trillion yuan in treasury bonds issued in the fourth quarter of last year for post-disaster recovery and reconstruction and improvement of disaster prevention, mitigation and relief capabilities saw all projects already begin as of the end of June this year, with 770 billion yuan invested so far. On the private investment front, we have promoted 1,635 major projects to private capital this year, of which 441 have successfully attracted private investment, amounting to a total investment of 344.8 billion yuan. Progress has also been made in involving private capital in major infrastructure projects, such as nuclear power and railways. Additionally, we have selected the first batch of 189 national key private investment projects and helped coordinate and address major issues like ensuring financial factors. We have also standardized the new mechanism for cooperation between government and social capital, focusing on user-fee models, completely adopting the franchise model and prioritizing participation of private enterprises. Demonstration projects with 141 billion yuan of investment have already been made public.

According to directives from a meeting of the Political Bureau of the CPC Central Committee and a State Council executive meeting, we will next collaborate with relevant departments to coordinate existing and incremental policies that aim to expand effective investment, ensuring stable investment growth. I will outline the policy implementation going forward in five aspects:

First, we will speed up the release of both the project list of 2025 for the two major initiatives and the investment plans under the central government budget. Providing support for the two major initiatives is a strategic decision of the CPC Central Committee with the aim to strengthen the nation and achieve national rejuvenation. The issuance of ultra-long special treasury bonds will continue in 2025, and we will optimize the allocation of these funds, ensuring strong support for the two major initiatives. Currently, the NDRC, in coordination with relevant departments and local governments, is preparing a batch of major programs for the two major initiatives in a top-down manner while accelerating “soft construction” like innovations in policy, planning and institutions. The continuous improvement of investment mechanisms and investment efficiency and the coordination of “hard investment” with “soft construction” are all contributing to the goals of the two major initiatives. Investment plans under the central government budget will continue to support foundational, public welfare and long-term projects, accelerating efforts to address shortcomings during China's modernization. Issuing project lists and investment plans in advance helps to speed up preliminary work and initiate project implementation. To this end, as Mr. Zheng just mentioned, by the end of this month, we plan to issue a 100-billion-yuan project list for the two major initiatives and a 100-billion-yuan central government budget investment plan, in accordance with procedures. The projects involved have been carefully selected by the NDRC and relevant government departments. These projects meet investment criteria, have already completed preliminary preparations and are with right conditions, allowing for concrete results within the year. 

Second, we will increase efforts to advance the 102 major projects outlined in the 14th Five-Year Plan. Of the 5,100 specific projects involved, 92% have already started construction or been completed. Next, we will further enhance coordination to ensure that all those involved fully shoulder their share of responsibilities. By strengthening financial support and factor resource supply, we will accelerate the start of the remaining 409 specific projects to ensure the successful completion of all 102 major projects outlined in the 14th Five-Year Plan by the end of next year.

Third, we will ensure the efficient use of local government special bonds. On the one hand, we will urge relevant local governments to issue the remaining 290 billion yuan in special bonds allocated for this year by the end of October. At the same time, we will accelerate both the construction of projects funded by the issued bonds and the use of funds, achieving more tangible progress. On the other hand, to address prominent issues in the issuance, use, and management of local government special bonds, the NDRC and Ministry of Finance are exploring ways to expand the scope of funds raised from bond sales. This includes allowing a larger share of these funds to be used as capital across more sectors and on a broader scale. We are also carrying out studies, launching trials to give local governments more autonomy in project review, and implementing "green lanes" for ongoing projects. New measures to improve the management of local government special bonds will be introduced as soon as possible.

Fourth, we will strengthen the management of government investment projects at all stages. We'll enhance project coordination through online monitoring, on-site supervision and inspections, guiding local authorities and departments in implementing various government investment projects and accelerating their progress. Simultaneously, we'll intensify efforts to reform the investment review and approval system and swiftly develop policies to improve government investment decision-making mechanisms and raise investment efficiency.

Fifth, we will support and encourage the healthy development of private investment. We'll accelerate improvements to long-term mechanisms for private enterprises' participation in major national projects, focusing on promoting high-quality projects to encourage more private capital in major infrastructure projects like railways, energy and water conservation. We'll also expedite the selection of a new list of national key private investment projects. Additionally, we'll regulate and implement a new mechanism for government and private capital cooperation, support eligible private investment projects in issuing infrastructure REITs, and deepen trials allowing banks to participate in combined debt-equity investments.

Thank you.

Lianhe Zaobao:

How does the Chinese government plan to boost private investors' confidence and attract more foreign investment? What measures will you take to further improve the business environment? Thank you.

Zheng Shanjie:

Thank you. I'd like to invite Ms. Zheng Bei to answer these questions.

Zheng Bei:

I'll answer these questions. This is an important issue. The Sept. 26 CPC Central Committee Political Bureau meeting called for intensifying efforts to regulate business-related law enforcement and oversight, enhance the market-oriented, law-based, and internationalized business environment, and assist enterprises in overcoming challenges. The NDRC will adopt a problem-oriented approach and work continuously with relevant departments to improve the business environment. We'll make further efforts mainly in three aspects.

First, we'll further improve the legal framework involving enterprises. We'll accelerate legislation promoting the private sector to ensure equal treatment of state-owned and private enterprises by law. We'll also revise the Public Bidding Law to remove local protectionism and ensure fair market competition for all ownership types. Additionally, we'll facilitate revising regulations on payments to SMEs to secure timely payments from government offices, public institutions, and large enterprises. We'll also move faster to abolish laws, regulations, and policies that treat enterprises unfairly, removing institutional obstacles to fair competition.

Second, we'll further regulate law enforcement and oversight involving enterprises. We'll refine standards on administrative discretion, adopting more accommodative and prudential regulation and soft law enforcement to avoid or minimize the impact on normal business activities. We'll regulate cross-regional administrative enforcement by establishing an assistance system to prevent selective and profit-driven law enforcement. We'll also strengthen oversight over administrative law enforcement, taking resolute steps against arbitrary charges, fines, and quotas and holding those responsible accountable.

Third, we will further help enterprises address their difficulties. We will fully leverage the inter-ministerial joint meeting mechanism to promote the growth and expansion of the private sector, as well as build and make the best use of the comprehensive service platform for developing the private economy. We will strengthen the multi-tier regular exchange mechanism at national, provincial, city and county levels so as to listen to the opinions and suggestions of enterprises and solve pressing difficulties and problems that concern them most. For example, to address enterprises' primary financing concerns, we've expanded policies allowing loan renewals without principal repayment through the inter-ministerial joint meeting mechanism. The scope has been expanded for a limited time from micro- and small-sized enterprises to medium-sized enterprises in sci-tech industries, manufacturing and agriculture, raising loan renewal efficiency and reducing the cost of funds.

As Mr. Zheng noted, we'll implement five measures to attract more foreign investment: intensifying efforts to attract and stabilize investments, further expanding opening-up, launching more major foreign investment projects, encouraging foreign enterprises to deepen their presence in China, and supporting foreign businesses in succeeding here. Thank you.

Reuters:

What's the expected scale of this policy package and its goal? Will China reach its 5% growth target for this year? Will the current deflationary pressure on the economy ease to some extent? Thank you.

Zheng Shanjie:

Thank you. I would like to invite Mr. Zhao Chenxin to answer these questions.

Zhao Chenxin: 

Thank you to the journalist from Reuters for their questions. Mr. Zheng's previous briefing should have all the information you need. For example, we've prioritized "three areas" and have followed "four principles" in formulating this package of incremental policies. By "three areas," I mean that we have focused on ensuring the quality of economic development, supporting a sound development with the real economy and business entities as well as promoting high-quality development and high-level security in a coordinated manner. By "four principles," I mean that we have ensured that policies are target-oriented, problem-oriented, systematic and balanced while also considering both short-term and long-terms goals. There are many key words in Mr. Zheng's briefing. For instance, the package of incremental policies is designed to be comprehensive and systematic. In this sentence, "comprehensive" and "systematic" are two words central to understanding the policies. Furthermore, when it comes to implementation, we need to ensure that the policies are implemented in a targeted, precise, effective and sustainable manner. Mr. Zheng has offered a detailed explanation for all this information. Focusing on these core elements will be helpful for your understanding of the package of incremental policies. The goal of this package of incremental policies is to stimulate society as a whole's enthusiasm, initiative and creativity in order to promote high-quality development so as to boost economic recovery.

In the first half of this year, China's economy grew by 5%, with employment and price levels remaining basically stable. Today is October 8 and the first three quarters have just passed. Our data suggests that China's economy has maintained overall stability and progressive growth. As various decisions and arrangements made by the CPC Central Committee and the State Council are implemented and the effects of this package of incremental policies continue to manifest, it is expected that vitality and driving forces for development will be further unleashed, market confidence will be further enhanced and the foundations for high-quality development and stable economic performance will be further consolidated. We have the conditions, capabilities and confidence to achieve this year's targets with economic and social development. Thank you. 

Bloomberg:  

I have two questions, actually. My first question is about the labor market. With the changes that have been the focus of the government this year on moving to high-quality growth, there has been a lot of problems in the labor market, including in getting young people jobs. The youth jobless rate has risen to 18% in August. How can the government ensure full employment as construction and other labor-intensive industries decline and are replaced with mostly automated industries, such as high-tech manufacturing? And my second question is following on what has been announced today. You said that you wanted to ensure all the special local government bonds would be sold by the end of October. Does that mean you plan to sell new bonds in November and December when there will be no bonds for sale? Thank you. 

Zheng Shanjie:

Thank you to Bloomberg's journalist for their questions. I'd like to invite Mr. Li to answer the question regarding employment.

Li Chunlin:

Thank you for your questions. Mr. Zheng touched upon the issue of employment in his previous briefing on the package of incremental policies. Ensuring high-quality and full employment is one of the primary objectives that the package of incremental policies aims to achieve through its prioritized "three areas."

This year, a series of policies aimed at promoting economic growth and employment have taken effect, leading to a generally stable employment situation. In the first eight months of this year, the urban surveyed unemployment rate averaged at 5.2%, down 0.1 percentage points year on year. The labor force shifting from low-productivity sectors to high-productivity sectors is a very normal phenomenon. While technological progress is promoting economic transformation and industrial upgrading, it is also fostering new professions and creating new job opportunities. For example, the rapid development of the low-altitude economy has led to the emergence of drone operators as a new profession. Statistics show that China is facing a shortage of 1 million people in this position. Another example is the new energy vehicle maintenance industry. Currently, fewer than 100,000 people are working in this sector. Projections indicate that the talent gap for professionals in maintenance and R&D could reach 1.03 million by 2025, providing ample opportunities for employment.

The Political Bureau of CPC Central Committee held a meeting on Sept. 26, making a series of arrangements to ensure employment. Development, especially high-quality development, is essential for generating new employment opportunities. Going forward, the NDRC will intensify our endeavors to implement the employment-first strategy as well as strengthen macro policies in a coordinated manner. We will help people foster a healthy perspective toward employment and promote employment through economic growth. Based on Mr. Zheng's briefing, I'd like to share four more items of information:

First, we will expand effective demand and foster new growth drivers for employment. We'll give full play to the leading role of the central budget investment and encourage private investment with various measures. Mr. Zheng and Ms. Zheng just now also both mentioned private investment. We'll step up efforts to implement major national strategies, build up security capacity in key areas and implement programs to promote large-scale equipment upgrades and consumer good trade-ins. We'll ensure more support for programs that provide more jobs. For example, although the specific figures for this year haven't been released yet, last year the NDRC allocated 10.9 billion yuan from the central government budget for work relief programs. This investment facilitated as many as 290,000 low-income individuals in rural areas to find jobs locally or near their homes, boosting their per capita income to 10,000 yuan. This initiative played a significant role in creating a substantial job market. As such, a significant number of jobs have been created thanks to major national strategies, building up security capacity in key areas as well as the program to promote large-scale equipment upgrades and consumer good trade-ins. 

Second, we will focus on enhancing job creation capacity for emerging industries. We'll ramp up efforts to develop new quality productive forces that are aligned with local conditions and foster strategic emerging and future-oriented sectors, including next-generation information technology, energy conservation and environmental protection, biotechnology, new materials, and new energy. By doing so, we're aiming to create more technical and professional positions. 

Third, we will create more job opportunities in the life service industry. We'll promote service consumption in an innovative manner and create new demand for consumption. We'll advance the silver economy. Given China's increasingly aging population, it is crucial to fully leverage the employment potential within the social services industry such as elder care, housekeeping, childcare and logistics. Take the housekeeping sector as an example, while China's domestic service industry currently has around 30 million employees, the market actually demands as many as 50 million people, especially high-quality and highly-skilled domestic service workers.

Fourth, we'll give full play to the role of vocational education and skills training with promoting employment. We will leverage various resources to increase investment in infrastructure used for skills training and assist local governments in establishing platforms, such as public training centers and those that bring together industry and education. We will tailor our training programs to meet enterprises' specific employment demands and provide order-based, targeted and project-oriented training to workers, enabling them to use their skills to secure jobs and increase their incomes. That's all for my response. Thank you. 

Zheng Shanjie:

We're also concerned about the employment issue you mentioned. As Mr. Li explained, there are some structural problems in employment: increases and decreases, labor migration, and shortages in some areas. We're taking measures to address these issues. I noticed your question also relates to special-purpose bonds. I'd like to invite Mr. Liu to answer that part.

Liu Sushe:

Regarding the special-purpose bonds question from this reporter, as mentioned in our opening remarks, this year's special-purpose bonds for project construction total 3.12 trillion yuan. By the end of September, 2.83 trillion yuan had been issued, and we're urging local governments to complete the issuance of the remaining 290 billion yuan by the end of this month.

In the next step, our priority is to fully utilize and maximize the effectiveness of special-purpose bonds, ensuring related projects start as soon as possible and deliver tangible benefits. Meanwhile, the NDRC and the Ministry of Finance are developing new measures to improve the management of local government special-purpose bonds. Once introduced, these measures will help special-purpose bonds play an even greater role in boosting investment. That's all I have to add.

Economic Daily:

You mentioned earlier that the package of incremental policies includes a significant demand for additional funds for urban renewal. We understand urban renewal encompasses renovating old residential areas, upgrading underground pipelines, and more. Could you elaborate on the specific support policies in place, especially regarding financing support? Thank you.

Zheng Shanjie:

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

Liu Sushe:

Thank you for your question. Currently, China's urban development has entered a stage where both new construction and renewal of existing infrastructure are equally important. Urban renewal and renovation tasks will become increasingly demanding in the coming years. For example, it's estimated that nearly 600,000 kilometers of gas, water supply, sewage, and heating pipelines will need upgrading over the next five years, with a total investment demand of about 4 trillion yuan.

The package of incremental policies clearly emphasizes strengthening key urban renewal projects. Moving forward, we'll coordinate various funding sources, release project lists and investment plans in advance to expedite eligible projects, and establish a sustainable renovation mechanism. We'll actively improve urban infrastructure, quickly address weaknesses, and fully tap into the vast potential of China's new urbanization, creating new drivers for economic growth. Our next steps include:

First, we'll advance urban renewal projects by type and in an orderly manner. Prioritizing tasks based on urgency, we'll focus on eliminating safety hazards in the short term, upgrading aging infrastructure in the mid-term, and enhancing facility functions in the long term. We'll launch a comprehensive urban infrastructure upgrade campaign, prioritizing projects critical to public security and well-being. These include improving underground pipeline networks, renovating old residential communities, revamping urban villages, and enhancing urban transportation infrastructure. We'll also proceed with transforming old neighborhoods and industrial areas, and upgrading urban public services in a well-planned way.

Second, we'll prioritize financing key urban renewal projects in next year's list of projects related to implementing major national strategies and building up security capacity in key areas as well as in the central budgetary investment plan. There's significant funding demand for urban underground pipeline networks, with many projects ready for implementation. We'll focus on supporting these key projects in the next stage. From 2023 to 2024, the NDRC has allocated over 470 billion yuan from the central government budget, additional treasury bonds, and ultra-long special treasury bonds to support urban gas and drainage pipeline renovations and old urban community renewals. Urban renewal will remain a priority for government investment in the coming years, with efforts continuing in 2025. In the two 100-billion-yuan project lists and investment plans, urban renewal accounts for a significant proportion, focusing on gas, water supply, sewage, and heating pipeline construction, especially in densely populated cities and central urban areas. These funds will primarily support ongoing projects and those ready to start in the fourth quarter, addressing critical issues like aging gas pipelines, urban flooding, and water pipe leakage. We'll also increase central government budget investment in renovating old urban residential communities, urban villages, and dilapidated housing. We're exploring the possibility of including urban renewal projects that generate returns, such as renovating old neighborhoods and industrial areas, in local government special-purpose bonds.

Third, we'll actively explore innovative financing models. Urban renewal holds significant market potential, and the scale of investment required is too large for government funding alone. Establishing diversified investment mechanisms and attracting broad participation from private capital is essential. For sectors with high marketization and strong business competitiveness, we'll enhance investment mechanisms and boost efficiency, fully leveraging the role of the market. In areas with moderate returns where private capital is willing to invest, we'll fully leverage the role of the new public-private partnership (PPP) mechanism and infrastructure REITs. This will help establish a sustainable renewal and upgrading model that integrates government guidance, market operations, and participation from all sectors of society.

Thank you.

Zhinews of Shenzhen Satellite TV:

We know that energy is a crucial support for economic and social development, and it is also essential for the development of enterprises. Therefore, I would like to ask, does the package of incremental policies have any specific arrangements for strengthening energy security with major projects? Thank you.

Zheng Shanjie:

Energy is a critical basis for economic development, and you have raised a very important question. I would like to invite Mr. Zhao to answer this question.

Zhao Chenxin:

Thank you for the question. Mr. Zheng just emphasized the importance of strengthening focus on factor allocation security. Indeed, energy supply is a crucial part of factor allocation security. It is vital for high-quality development and can be considered a key to supporting high-quality development. In order to implement the decisions made at the meeting of the Political Bureau of CPC Central Committee held on September 26, and to secure factor allocation to support the development of the real economy, the NDRC has further clarified measures for controlling the total amount and intensity of energy consumption.

First, we will effectively expand the space for energy use. Since the 14th five-year plan, the NDRC, by improving policies on total energy consumption and intensity regulations, has adjusted our energy consumption regulations to exclude raw material energy use and non-fossil energy consumption. As you all know, with the rapid development of renewable energies, the scale of space for energy usage under this policy is gradually increasing. Based on what we have learned so far, further efforts are still required in order to make good use of this policy. Therefore, this incremental policy further specifies that, during the assessment and review for energy saving responsibilities for fixing asset investment projects, raw material energy consumption and non-fossil energy consumption should be strictly deducted. This is aimed at guiding localities to prioritize controlling consumption of fossil fuels and increase the use of renewable energy through the purchasing of green electricity and green certificates, thereby freeing up more energy usage space for economic and social development. At the same time, we will strengthen our efforts to curb the blind and disorderly launch of projects that consume high amounts of energy and emit high amounts of emissions. This will effectively curb unreasonable new energy demands, promote industrial optimization and upgrading, and foster healthy development.

Second, we will thoroughly explore energy-saving potentials in existing energy consumption. Currently, China's total energy consumption is approximately 10 times that of the projected incremental energy consumption during the 14th Five-Year Plan period. Exploring energy-saving potentials can significantly free up energy usage space for economic and social development. We will coordinate the use of funds from the central budget, ultra-long-term treasury bonds and other financial channels, combined with the implementation of initiatives such as large-scale equipment upgrades and consumer good trade-ins, to support energy-saving and carbon-reducing transformations within key areas as well as upgrades of energy equipment. By actively tapping into energy-saving potentials, we aim to protect the transformation and upgrading of traditional industries and the development of new industries to meet the reasonable demand for energy.

Third, we will intensify the implementation of separate energy consumption quotas for major national projects. A group of major projects that align with the national major productivity layout, enhance the resilience and security of industrial chains and supply chains as well as support the development of new quality productive forces will be included in separate energy consumption quotas during the 14th Five-Year Plan period. The energy consumption of these projects will no longer be included in provincial governments' energy-saving target responsibility assessments, thus strengthening the energy supply guarantee for these major national projects.

Next, the NDRC will continue to ensure that relevant policies are effectively implemented, focusing on enhancing energy efficiency at a higher level and better quality. By strengthening energy supply guarantees for high-quality development, we aim to provide robust energy support for sustained and healthy economic development.

That's all for my answer. Thank you.

The Paper:

Promoting people-centered new urbanization is a systematic project. To ensure that rural migrants have the desire, ability and conditions to live in cities long term, what measures are included in the package of incremental policies to accelerate the construction of new urbanization? Thank you.

Zheng Shanjie:

Thank you for your question. It is a very comprehensive one. The CPC Central Committee and the State Council have recently issued a document on new urbanization. I will invite Ms. Zheng Bei to answer this question.

Zheng Bei:

Thank you for your question. As you mentioned, promoting people-centered new urbanization is a systematic project. After the State Council issued the "Five-Year Action Plan on Deepening the People-Centered New Urbanization Strategy" on July 28, we have been working closely with relevant departments to refine key tasks for this year and next year. We are conducting specialized training at the provincial, municipal and county levels, focusing on tackling bottleneck challenges in advancing new urbanization through pilot projects. To accelerate the development of people-centered new urbanization, we emphasize within the package of incremental policies four key actions outlined in the five-year action plan to increase policy support and implementation efforts.

First, in the implementation of a new round of urbanization for rural migrant populations, we focus on removing bottlenecks in the urbanization process for over 170 million rural migrant workers and their accompanying family members. To address difficulties with obtaining household registration in big cities, we are prioritizing speeding up the relaxation of household registration requirements in cities with a permanent resident population of over 3 million, establishing community public household registration systems and improving policies for obtaining household registration through renting. To address the pressing concerns of rural migrant populations, such as education and health care, we are increasing support through ultra-long-term treasury bonds for projects such as the building of high schools and the renovation of hospital wards in cities that experience significant growth in population.

Second, to raise the level of urbanization in potential regions, we focus on addressing issues such as insufficient carrying capacity of county seats and weak industrial foundations. By actively leveraging local government special bonds and medium- to long-term loans from policy banks, we are accelerating the construction of basic infrastructure and industrial support facilities in county towns. This effort aims to promote industry alignment and cooperation between the central and western regions as well as the eastern region, facilitating the implementation for a number of major projects.

Third, to cultivate modern metropolitan areas, we focus on connecting intercity transportation's "dead ends" and “traffic bottlenecks.” By strengthening financial support through local government special bonds and other means, we are constructing a series of municipal (suburban) railways, intercity railways and urban expressways to create commuting circles, industrial clusters and living circles, thereby enhancing the level of integrated urban development.

Fourth, to enhance urban safety and resilience, we focus on eliminating risks and vulnerabilities in urban construction. We are prioritizing infrastructure projects like underground pipeline networks; planning next year's investment projects in advance; vigorously implementing urban lifeline safety projects; and accelerating the improvement of flood controls and drainage systems. These actions are all aimed at promptly addressing shortcomings in urban safety and resilience.

New urbanization serves as a "multiplier" for expanding consumption and an "accelerator" for driving investment. We will work with relevant departments to fully leverage the significant role of new urbanization in boosting domestic demand, providing strong support for stable, healthy and sustainable economic development. Thank you!

Shou Xiaoli:

Let's continue with the questions. Due to time constraints，the last two questions please.  

South China Morning Post:

I would like to ask whether the NDRC will consider accelerating the approval and construction of local infrastructure and other government investment projects, especially some large-scale, cross-regional projects. Is there a specific list? Thank you.

Zheng Shanjie: 

Thank you. Many places, departments, businesses and operating entities are very concerned with these issues. Mr. Liu will address this.

Liu Sushe:

The Political Bureau of the CPC Central Committee's meeting on Sept. 26 emphasized the need to issue and effectively use ultra-long special treasury bonds and local government special-purpose bonds to better leverage the role of government investment. In the current economic situation, reasonably increasing infrastructure investment helps maintain stable investment growth and promotes steady and healthy economic development. Regarding your question on whether the approval and construction of local infrastructure investment projects will be accelerated, we at the NDRC consider the following three points:

First, we will select the right investment direction. Projects must focus on the needs of economic development and the improvement of people's well-being, precisely addressing weaknesses and strengthening deficiencies. For example, urban renewal and renovation, which have significant investment potential and clear economic and social benefits, should be key directions for future local infrastructure investments.

Second, we will solidify preliminary work. Local investment projects must conduct thorough preliminary feasibility studies, adhere to the principle of evaluation before decision-making and scientifically determine project plans for construction. Projects must efficiently complete relevant approval procedures and establish construction conditions according to regulations, ensuring smooth project implementation.

Third, we will secure project construction funding. It is essential to fully evaluate project funding plans as well as lawfully and compliantly secure construction funds from various channels. Particularly, for eligible projects, we will consider appropriately increasing central government support with investments to effectively reduce the financial burden on local governments.

That concludes my response. Thank you.

Shou Xiaoli:

The last question.

Nanfang Metropolis Daily:

After October, various regions will gradually enter winter's peak season for electricity, heating and gas usage. How can you ensure security with energy supplies and the stabilization of prices for essential commodities this winter? Thank you.

Zheng Shanjie:

Thank you, this is indeed a matter of great concern for the public. Every year we take measures to respond to summer and winter peaks. I would like to invite Mr. Li to address this question.

Li Chunlin:

I am pleased to address this question. As Mr. Zheng mentioned, this issue affects every household. With the National Day holiday just over and deep autumn approaching, the northern regions will gradually enter the heating season, followed by the New Year and Spring Festival. The meeting of the Political Bureau of CPC Central Committee on Sept. 26 has already planned for this work. Let me briefly respond to these two issues.

First is about energy security. The NDRC, in conjunction with relevant parties, has made a series of early arrangements. Overall, the foundation for energy supply security is quite solid. In terms of coal, national coal production has remained stable with coal inventory in regulated power plants exceeding 200 million metric tons, which is enough for over 30 days on average, a historical high for the same period. The northeastern regions have ample coal reserves for winter. Regarding electricity, as of the end of August, the national installed power generation capacity reached 3.13 billion kilowatts. Despite increased uncertainty in power supply due to the high proportion of renewable energy sources, such as hydropower, wind power and photovoltaic power, which now account for more than half of the total installed capacity, we can achieve stable and reliable power supply through enhanced intelligent dispatching and improved cross-provincial and cross-regional mutual aid levels. For natural gas, resource supplies are sufficient with peak-shaving and gas storage capacity increased by eight billion cubic meters year on year, ensuring that storage targets are met before winter.

Next, the NDRC will continue to strengthen monitoring and analysis, enforce responsibilities across all parties and make every effort to ensure a stable energy supply. First, we will increase the production and supply of resources such as coal and natural gas, ensure that all types of power generation units operate at full capacity and promote the efficient utilization of new energy sources. Second, we will focus on increasing reserves of thermal coal and natural gas, enhance cross-provincial and cross-regional power dispatching and improve the precision of energy storage deployment to boost peak support capabilities. Third, we will prioritize energy use for people's livelihoods, minimizing the impact of extreme weather and other emergencies on normal production and daily life. During the past summer, due to extreme heat and other factors, the national maximum power load and daily maximum electricity consumption reached historic highs of 1.451 billion kilowatts and 32.5 billion kilowatt-hours, respectively, exceeding the 2023 peak by 106 million kilowatts and 2.4 billion kilowatt-hours. Despite these challenges, China maintained a stable and orderly energy supply. Even when typhoons and flooding caused temporary power outages in certain areas, repairs were organized immediately to restore power promptly. With the concerted efforts of all parties, the energy supply for this winter's heating season can be effectively guaranteed, providing strong support for the continued economic recovery and ensuring that people stay warm during the winter months.

Second is about ensuring the supply and stabilizing the prices of essential commodities for people's livelihoods. Currently, the market supply of essential commodities nationwide is abundant, and operations are stable. Summer grain production has increased, and a good harvest for autumn grain is anticipated. Hog production is at a reasonable level, and the inventory of egg-laying hens and other livestock remains high. The acreage of vegetables in fields has increased. Additionally, reserves of grain and cooking oil in 36 large and medium-sized cities can meet consumption needs for more than 15 days; the capacity to regulate pork reserves is continuously improving; and the reserves of winter and spring vegetables in large northern cities are steadily being strengthened, providing a solid foundation for ensuring supply and stabilizing prices. Recently, in response to increased consumption during the National Day holiday, many regions initiated reasonably-priced sales to benefit the public, increasing the supply of affordable vegetables and other goods to ensure sufficient market supply and stable prices. 

Next, our commission will closely monitor market dynamics and, in conjunction with relevant parties, take proactive measures tailored to the winter, New Year and Spring Festival periods. We will focus on autumn and winter agricultural production, enforce local reserve responsibilities, strengthen the connection between production and sales, ensure smooth logistics and transportation, timely release supplies, enhance market supervision and improve contingency plans. These efforts aim to effectively guarantee the market supply of essential commodities for people's livelihoods and create a favorable environment for the effective implementation of incremental policies. 

Thank you!

Shou Xiaoli:

Thank you, Mr. Zheng, thank you to all the speakers and thank you to all the journalists for your participation. This concludes today's press conference. Goodbye, everyone.

Translated and edited by Zhou Jing, Liu Sitong, Zhang Rui, Huang Shan, Wang Xingguang, Li Xiao, Ma Yujia, Gong Yingchun, Wang Qian, Zhang Tingting, Chen Xinyan, Li Huiru, Yang Chuanli, Yuan Fang, 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. Zhang Zheng, vice minister of culture and tourism

Mr. Ming Wenjun, director general of the Art Department of the Ministry of Culture and Tourism (MCT)

Mr. Chen Binbin, director general of the Public Service Department of the MCT

Mr. Miao Muyang, director general of the Industrial Development Department of the MCT

Chairperson:

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

Date:

Sept. 30, 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. Zhang Zheng, vice minister of Culture and Tourism, to brief you on relevant developments and to answer your questions. Also present today are Mr. Ming Wenjun, director general of the Art Department of the Ministry of Culture and Tourism (MCT); Chen Binbin, director general of the Public Service Department of the MCT; and Mr. Miao Muyang, director general of the Industrial Development Department of the MCT.

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

Zhang Zheng:

Good afternoon. Today is Martyrs' Day, and we would like to pay tribute to the people's heroes. On the occasion of this press conference, we would like to express our gratitude to reporters for their interest in and support for the culture and tourism work over the years. I'm very glad to have the opportunity to be here with my colleagues and share with you the relevant progress in promoting the high-quality development of culture and tourism.

Our country will thrive only if our culture thrives, and our nation will be strong only if our culture is strong. Since the 20th National Congress of the Communist Party of China (CPC), the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to cultural and tourism work, made comprehensive arrangements for building a leading country in culture, and held conferences on tourism development. General Secretary Xi Jinping has made important instructions on the work of public communication and culture as well as tourism. The leading Party members group of the MCT has conscientiously studied and implemented Xi Jinping Thought on Culture, implemented the guiding principles of the 20th CPC National Congress and the second and third plenary sessions of the 20th CPC Central Committee, kept in mind the overall work of the Party and the country, focused on people's aspirations for a better life, and strived to advance the high-quality development of culture and tourism. You may have already noticed that the culture and tourism craze has become the norm and has attracted widespread attention.

Now I will present to you the overall situation from six aspects:

First, we have strived to create and launch excellent literary and artistic works. We have given more support to stage performances and the creation of fine art, implemented a series of artistic creation projects in the new era, encouraged literary and artistic workers to produce works drawing inspiration from everyday life and the experiences of the people, and launched many good performances and activities. For example, the large-scale art performance "The Great Journey" celebrating the centenary of the Party's founding demonstrated the artistic style of a major country. The dance dramas "The Eternal Wave" and "A Tapestry of a Legendary Land" with which you are all familiar with have been both critical and commercial hits. Artworks reflecting the spirit of the times and focusing on the people's lives have been produced one after another.

Second, we have strived to improve the efficiency of public cultural services. We have rationally planned, built and improved the network of public cultural facilities, and created nearly 40,000 new public cultural spaces including reading spaces and cultural stations. To adapt to the development of information technology, we have built a smart library system and a public cultural cloud, providing more good places and good resources that allow people to read, learn and unwind. To meet the needs of the people, we have organized activities such as village galas, singing competitions and square dancing, attracting more and more people to sing, dance and have fun.

Third, we have strived to preserve and inherit cultural heritage. We have implemented the project to trace the origins of Chinese civilization and the Archaeological China project, carried out the fourth national survey of cultural relics, and advanced the preservation, inheritance, research and dissemination of intangible cultural heritage in a systematic manner, making intangible cultural heritage shine with new brilliance and vitality and better connect with modern life. With "museum fever" and "intangible cultural heritage fever" continuing to heat up, appreciating cultural relics and experiencing intangible cultural heritage has become a new fashion. In July, the Beijing Central Axis was successfully inscribed on the World Heritage List, attracting widespread attention from across society and making experiencing cultural heritage once again a popular activity during the summer holiday.

Fourth, we have strived to promote the sustainable growth of the cultural industry. We have implemented strategies such as the national cultural digitization strategy and implementation of major cultural projects to spur the development of the sector, and advanced the continuous expansion of the scale of the cultural industry, achieving growth of business entities and significant improvements of quality and efficiency. In the first half of this year, the operating revenue of enterprises in cultural and related industries above designated size reached nearly 6.5 trillion yuan, with a year-on-year increase of 7.5%. Concerts and music festivals are popular all over the country. "China-chic," "neo-Chinese style" and "creative cultural products" have adopted both Chinese aesthetics and modern design, becoming commonplace in people's daily lives and attracting countless fans. 

Fifth, we have strived to promote the high-quality development of the tourism industry. We have continued to improve traditional forms of business and cultivate new forms of business and new scenarios, promoted the accelerated integration of tourism and culture, sports, commerce and agriculture, launched diversified, personalized and high-quality products, held a series of activities such as China Tourism Day and "Travel in China for a Better Life," and carried out consumption promotion activities during important periods such as holidays, so that people can travel with abundant choices, good experiences and for a reasonable cost. In addition to primary choices for travel such as national 5A tourist attractions and national tourist resorts, performances, sporting events, films and TV dramas have also attracted tourists and become new leisure choices. In the first three quarters, tourists made an estimated 4.29 billion domestic trips and tourism-related consumption reached 4.32 trillion yuan, increasing by 16.8% and 17.1% year on year, respectively, close to the peak level in 2019. This boom in tourism has not only enriched people's lives, but also boosted market confidence, driving the growth of consumption in transportation, accommodation, catering and retail, and giving play to its due role as a contributor to the people's well-being and their sense of happiness, as well as an emerging strategic pillar industry. 

Sixth, we have strived to present Chinese culture to the world. We have held a series of art performances to mark major diplomatic events, such as the China-Central Asia Summit, to actively expand bilateral and multilateral cultural and tourism exchanges and cooperation as well as to broaden the brand influence of "Happy Spring Festival" celebrations. Focusing on the bottleneck of inbound tourism, we have launched a series of measures and enhanced the level of facilitation. Twenty-seven "Nihao! China " overseas promotional tourist events have been held in 14 countries, attracting more foreigners to travel to China to experience a home away from home and China's beauty. The number of inbound visits in the first three quarters is expected to reach 95 million, a year-on-year increase of 55.4%, recovering to 93.4% of the same period in 2019.

In the next step, the MCT will conscientiously study Xi Jinping Thought on Culture, implement the guiding principles of the third plenary session of the 20th CPC Central Committee and focus on the objective of accelerating the building of a strong country in culture and tourism. We will give priority to meeting people's cultural needs and inspiring people, adhere to a problem-oriented approach, deepen reform and promote innovation, and introduce a raft of targeted and effective incremental policies and measures. A series of activities will be launched to benefit the people and enterprises and promote consumption, and more excellent cultural products and high-quality tourism products will be provided, all with the aim of achieving new breakthroughs in the high-quality development of culture and tourism.

With the National Day holiday approaching, we will hold rich and colorful cultural and tourism activities, as well as introduce practical measures to benefit the people. For example, the National Stage Art Excellent Plays Performance and the National Art Troupe Performance Season are currently underway with good plays staged one after another. The National Art Exhibition held every five years has opened at the National Art Museum of China with a collection of excellent works. A series of events such as The National Day Culture and Tourism Consumption Month, and The Creative Rural Life Season will be held and nearly 1,000 activities with the theme of intangible cultural heritage will also be launched. I hope everyone will pay more attention and make more reports.

Thank you.

Shou Xiaoli:

Thanks to Mr. Zhang for the briefing. The floor is now open for questions. Please identify the news outlet you represent before asking your questions.

Cover News:

The third plenary session of the 20th CPC Central Committee has stressed that we will refine the mechanisms for supplying cultural services and products. What can be done to provide more high-quality cultural and tourism products and services, so as to better meet people's new expectations for their intellectual and cultural lives? Thank you.

Ming Wenjun:

Thank you for your question, I would like to share my view from the perspective of literature and art. We believe that the people's aspiration for a better life is often reflected in the needs for high-quality literary and artistic works. We have also been constantly improving the systems and mechanisms in this regard to further advance literary and artistic creation. We hope that through such initiatives, we can better meet the needs of the people.

First, the creation and production of more excellent literary and artistic works are the basis for our work. Just now, Mr. Zhang has introduced some excellent works for the stage that have recently become popular. These new and excellent works that young people love, such as "The Eternal Wave" and "A Tapestry of a Legendary Land," have set off a dance drama craze. At the same time, the Peking Opera in Beijing's opera houses, Kunqu Opera in Suzhou's gardens, Qinqiang Opera on Shaanxi's thousand-year-old city wall and Hebei Bangzi in local communities are all also singing about Chinese opera fever. These happy scenes are the result of the promotion of artistic creation planning by the local cultural and tourism departments. We will also continue to carry out a series of major art creation projects, in which planning plays a very important role. It will drive various categories of the arts to continuously launch excellent literary and artistic works, especially the introduction of wonderful small and medium-sized works of art such as opera excerpts, dances and children's songs. At the same time, we will also support the high-quality development of some artistic varieties, such as musicals, and increase support for Chinese opera, so as to enable more people from the generations born after 2000 and 2010 to love our fine traditional Chinese culture.

How will we achieve this? We will make great efforts to build and strengthen art troupes at all levels. Many large art troupes, famous art troupes and art troupes like Ulan Muqir, a traveling art troupe performing for herdsmen in remote areas, perform across the country all year round. They have made excellent art works popular at the city and community levels. We will provide category-based guidance and assistance to state-owned art troupes, private art performance groups, grassroots rural opera troupes and folk troupes, improving various construction mechanisms so as to promote their high-quality development. With these high-quality cultural resources, we will also continue to expand the channels for high-quality cultural resources to reach the grassroots level as well as further improve the mechanism for government procurement of performance services, which has been implemented for many years. We will make greater efforts to introduce opera into the villages, communities, campuses and streets, so as to bring brilliant performances to people in both urban and rural areas. We will continue to support digital performing arts' content to enter "small screens," "medium screens" and "big screens" by means of live broadcasts, performances and screenings, as well as will encourage famous artists and new talents to enter the live broadcast room, put excellent works on screens and explore the opening of a second theater online, so that more audiences can share in the achievements of literary and artistic innovation and development.

The film "A Tapestry of a Legendary Land" adapted from a stage drama will be released nationwide tomorrow, adding splendor to the National Day holiday. I hope many people will go to the movies to enjoy it.

Literature and art should provide good content for culture and tourism's integration. Many friends have fallen in love with the regions south of the Yangtze River because of Kunqu Opera, storytelling and ballad singing in Suzhou dialect. They have walked into the Kuanzhai Alley because of Sichuan Opera. They have immersed themselves in the Unique Henan · Land of Drama theater complex in Henan's Zhengzhou and the Unique Dream of Red Mansion theater complex in Hebei's Langfang. In addition, they have visited beautiful Xinjiang after watching the TV series "To the Wonder" or the evening gala called "Lift Your Veil: Xinjiang is a Good Place." We will continue to improve the level of integration of literature and art with tourism, so that literature and art can promote innovation within the market, empower industries and enrich tourism. At the same time, we have also actively promoted international people-to-people exchanges and cooperation through literature and art. A few days ago, the National Ballet of China marked the 60th anniversary of the premiere of "The Red Detachment of Women." Over the past 60 years, this famous drama has been performed nearly 5,000 times at home and abroad across five continents, arousing a wide range of resonance and receiving high praise from audiences. Recently, the Shenzhen Opera and Dance Theater's martial arts-themed "Wing Chun," which has also been performed overseas, has sparked a lot of cross-country appreciation from the audience.

In the next phase, we will also promote more excellent theatrical works internationally, sharing Chinese stories and emotions with the world while highlighting humanity's shared future and struggles. Recently, many young people have fallen in love with Yue Opera because of "New Dragon Inn," especially the wonderful performance of the actress in the male role, demonstrating the public's appetite for fresh artistic talent and new productions. We're committed to building broader platforms that showcase promising, hardworking newcomers and creating venues for innovative, boutique productions, ensuring our artistic stage remains vibrant and diverse. Thank you.

Economic Daily:

We've noticed that over the past two years, cultural and tourism enthusiasm has been growing nationwide, leading to the emergence of numerous trending cities, popular scenic spots, and new projects. What are the MCT's considerations regarding the promotion of cultural and tourism consumption and industrial development? Thank you.

Miao Muyang:

Thank you for your question. As Mr. Zhang mentioned, the cultural and tourism craze has become the new normal. We're seeing a surge in the cultural and tourism market, with continued consumption vitality. The cultural tourism industry has evolved into a vital sector that enhances quality of life and promotes happiness. It plays an increasingly important role in driving economic transformation, stimulating consumer spending, and meeting people's aspirations for a better life. Based on current industry trends, we're preparing to introduce a series of measures to boost cultural tourism consumption and advance the sector's development.

First, we will launch a plan to enhance new business formats. We'll accelerate the development of new cultural and tourism industry segments, including online performances and broadcasting, immersive experiences, cruise and yacht services, and RV camping. We'll promote specialized travel models such as "show-based tourism," "sports event tourism," and "film and TV location tourism," while building on successful cases where TV shows have boosted regional tourism, as demonstrated by how "To the Wonder" transformed Xinjiang into a trending destination.

Second, we'll implement a cultural and tourism consumption promotion plan. We'll encourage all regions to introduce consumer-friendly measures and launch a National Day holiday cultural and tourism consumption month. Under the theme "Celebrating National Day and Exploring Our Beautiful Land," we'll coordinate approximately 24,000 events across 3,600 categories, highlighting contemporary lifestyles, magnificent landscapes, history and culture, and pillars of the nation, or significant achievements of strategic importance. Regions will issue 500 million yuan in cultural and tourism vouchers and other consumption subsidies. The " China Travel Makes Life Better" campaign will be conducted to bring benefits, convenience and joy to the general public.

Third, we will advance the digitalization of the cultural and tourism industry. We'll establish multiple scientific and technological innovation platforms, promoting the integration of technologies such as 5G, AR/VR, and artificial intelligence into the cultural tourism sector. This will create new digital experiences through smart tourism and immersive attractions. Many visitors have already experienced examples of this transformation, including Shanghai's "Horizon of Khufu" and "The Wind Rises in Luoyang" and Henan's "Back to the Jurassic."

Fourth, we will implement equipment upgrades throughout cultural and tourism facilities. Using ultra-long-term special treasury bonds, we will replace outdated cultural and tourism equipment that has been in use for many years and no longer meets performance and safety requirements. This includes upgrading to high-safety, reliable, and user-friendly sightseeing vehicles, cable cars, recreational facilities, performance equipment, and smart cultural and tourism infrastructure.

Fifth, we will launch the national scenic byway project. We'll develop a series of tourist routes featuring distinctive cultural features and comprehensive support services while improving tourism infrastructure along these routes.

Sixth, we will coordinate the Creative Rural Life Season initiative. We will take innovative steps to launch activities such as rural music concerts, art festivals, and creative fairs to provide more opportunities for people to experience rural customs and culture. A prime example is the ongoing China-French Classical Music Art Season in Pengzhou, Chengdu, which has attracted a large number of music fans.

Seventh, we will launch additional tourist trains. In cooperation with the State Railway Group, building on the 1,430 tourist trains already operating this year, we will introduce 330 new tourist trains, including the well-known Longjiang Special, Panda Train and Hulunbuir Special.

Eighth, we will optimize visa-free transit policies. Working with relevant departments, we will continuously improve visa and customs clearance procedures, gradually expand the list of visa-exempt countries, enhance transit visa-free policies, and streamline services for inbound tourism to promote its high-quality development.

In short, we will work to create a welcoming, pleasant, and secure consumption environment, continue to advance the upgrading of cultural and tourism products and business formats, and provide higher-quality travel experiences for people, ensuring everyone arrives enthusiastically and departs fully satisfied.

Thank you.

Science and Technology Daily:

Scientific and technological innovation has played an important role in driving cultural development. What will the MCT do to further enhance the efficiency of scientific and technological innovation and better support the high-quality development of culture and tourism? Thank you.

Zhang Zheng:

This is a very important question, and I appreciate you raising it. In the new era, emerging technologies are becoming a powerful engine for advancing the high-quality development of culture and tourism. New technologies have given rise to more products, scenarios and experiences. These technologies have also provided us with better ways to experience cultural and tourism offerings. Let me share how new technologies can better drive the development of culture and tourism in the following aspects.

First, we will focus on the supply of high-quality products. We will use intelligent technologies to assist creation and production, advance breakthroughs in integrated technologies and equipment such as those utilized in set design, lighting, sound and performance interaction, and cultivate a variety of new forms of business such as integrated online-offline exhibitions and performances, cloud performances and cloud theaters. From digital art exhibitions to holographic projection stage performances, from the "The Longest Day in Chang'an" theme block to the "Wind Rises in Luoyang" immersive full-sensory theater, technologies such as digital presentation and the combination of "virtual" and "reality" allow audiences to feel a greater sense of intimacy and realism.

Second, we will focus on upgrading public services. We will actively guide and support scientific and technological innovation projects, and increase technological research and market application of scientific and technological advances. From smart libraries and museums to smart scenic spots, new immersive experience spaces, and large-scale theme parks, information technologies have been increasingly applied in cultural and tourism scenarios. Nowadays, it has become the new norm for people to enjoy public cultural services online, including reading books, watching stage performances, viewing exhibitions, attending lectures and learning skills. In the increasing number of tourist spots, tourists can enjoy more convenient, colorful and cool services, such as automated entry, intelligent guides and immersive experiences.

Third, we will focus on the inheritance and protection of cultural heritage. New technologies will be applied in intangible cultural heritage projects involving ceramics, embroidery, lantern festivals, calligraphy and painting, enabling traditional intangible cultural heritage to shine. Cultural heritage has been brought to life and become popular in new ways, attracting more people, especially young people, to pay attention to and disseminate it, injecting new vitality into the creative transformation and innovative development of fine traditional Chinese culture. The "Yongle Encyclopedia" high-definition image database restores the original appearance of the encyclopedia, turning the national treasure into a three-dimensional comic book, demonstrating the twists and turns of history with background animations and sound effects. Readers can enjoy the exquisite traditional paper craftsmanship and delicate calligraphy brushstrokes online and feel the beauty of Chinese culture.

Fourth, we will focus on market oversight and monitoring. By means of big data and artificial intelligence technology, we will strengthen intelligent screening and precision identification of violations of laws and regulations, so as to protect people's legitimate rights and interests in culture and tourism. We will boost the improvement of equipment and technologies in the industry and enhance the level of intelligent management, making efforts to ensure cultural and tourism facilities are more comfortable, cultural and tourism venues are safer, and the cultural and tourism market is more orderly. At the same time, through a series of standards, we will promote the standardized management of performance venues, stage equipment, tourist attractions and amusement facilities, so as to provide safe and secure services.

Next, we will continue to advance the development of innovation platforms and the cultivation of scientific and technological projects, speed up advancing the application of new technologies in the field of culture and tourism, actively support technological innovation focusing on the fields of service scenarios of digital culture and integration of culture and tourism, and cultivate new quality productive forces, so as to better support the high-quality development of culture and tourism. Thank you.

Beijing Youth Daily:

At present, young people are paying increasingly more attention to and are increasingly interested in intangible cultural heritage. What is your view on this situation? Also, what measures has the MCT taken to promote the systematic preservation of intangible cultural heritage and advance its role in enriching people's cultural lives? Thank you.

Zhang Zheng:

That is a very pertinent question. Intangible cultural heritage is closely related to young people. I would like to invite Mr. Chen to answer this question.

Chen Binbin:

Thank you for your question. As you said, intangible cultural heritage is becoming increasingly popular now. How can we interpret this situation? First, I would like to share some data. After years of hard work, China has basically established a system of intangible cultural heritage lists, covering national, provincial, municipal and county levels. A total of more than 100,000 representative intangible cultural heritage items and more than 90,000 representative inheritors have been identified, while 43 intangible cultural heritage items have been included in the UNESCO Intangible Cultural Heritage Lists, ranking first in the world. China's 31 provinces, autonomous regions and municipalities have introduced regulations on protecting intangible cultural heritage. Intangible cultural heritage is becoming an important part of a more beautiful life. There are three aspects that deserve attention:

First, we have continued to promote closer connection between intangible cultural heritage and daily life. During this year's Spring Festival, a topic generated heated discussion online, which was "the sense of occasion comes from intangible cultural heritage." A total of 45,400 intangible cultural heritage activities were held nationwide during the Spring Festival. The popularity has continued from the Spring Festival to today. For example, from Zibo barbecue to Tianshui spicy hot pot, and from Guangxi's snail noodles to Fujian's Shaxian snacks, food-related intangible cultural heritage has satisfied people's taste buds and warmed their hearts. In addition to food, people can also pursue intangible cultural heritage during their travels. Just now, Mr. Miao mentioned several things that people can travel to seek out. In fact, it has become a new norm in recent years for people to travel to seek out intangible cultural heritage, further releasing new consumption potential. For example, going to Qinhuai to experience the Lantern Festival, going to Quanzhou to try on head-pinned flowers, and going to Shexian county to play with fish-shaped lanterns. These places have been added to the lists of "must-visit" travel destinations by many young people. When the first season of "China in Intangible Cultural Heritage" aired, it achieved 710 million views, and reached more than 8 billion views online.

In addition to being beautiful and delicious and integrated into life, intangible cultural heritage can also truly serve social development and benefit people's livelihoods. We have set up over 9,100 intangible cultural heritage workshops in more than 60% of counties nationwide, that is, 1,721 counties, so that villagers can achieve flexible employment on their doorsteps. For example, Xiangxi Tujia and Miao autonomous prefecture in Hunan province launched a charity program themed "Helping Moms Find Jobs Near Home," which relies on Miao embroidery. One of the workshops is called "Qixiu Workshop." This intangible cultural heritage workshop has provided nearly 2,000 rural women with vocational skills training, enabling them to realize their simple dream of taking care of their children while embroidering flowers to support themselves and their families. In 2022, traditional tea processing techniques and their associated social practices in China were added to UNESCO's Representative List of the Intangible Cultural Heritage of Humanity. Among the 832 counties lifted out of poverty nationwide, more than 150 have taken the tea industry as one of the leading industries, with an annual output value of more than 100 billion yuan, leading a total of more than 2.6 million poor people out of poverty and toward prosperity.

The third point of intangible cultural heritage that deserves attention is its youthfulness. Although it is a cultural heritage, intangible cultural heritage has now been accepted by more and more young people. For example, tai chi and baduanjin aerobics, which you're all familiar with, have both been taken as regimens to stay healthy by many young people. In the "Black Myth: Wukong" which is very popular this year, there is a northern Shaanxi folktale at the beginning of the game, which received tens of millions of views in two minutes. More and more young inheritors have entered the livestreaming room. According to our statistics, more than 99% of the 1,557 items of national intangible cultural heritage in China have relatively stable new media accounts and content. The youthfulness of intangible cultural heritage fully demonstrates the vitality of fine traditional Chinese culture. Intangible cultural heritage has also been connected with fashion. For example, gambiered Guangdong gauze, rattan weaving, velvet flower and other examples of national intangible cultural heritage have joined hands with international brands. A fashion show with the theme of Hainan's Li brocade also appeared at Paris Fashion Week in the past few days.

With the National Day holiday approaching, intangible cultural heritage themed activities will be held in various places for people to taste delicious food, have fun and create good experiences. For example, the China Intangible Cultural Heritage Museum, the Zhejiang Intangible Cultural Heritage Museum and the Guangdong Intangible Cultural Heritage Museum have prepared intangible cultural heritage performances, food markets and academic research experiences for people. Tianjin will hold a joint exhibition of intangible cultural heritage from Beijing, Tianjin and Hebei and launch activities such as the Shehuo (a traditional carnival-like folk celebration) tour and the intangible cultural heritage shopping festival. Shanxi will organize several hundred intangible cultural heritage inheritors with noodle skills to make a single noodle together, demonstrating traditional noodle skills on the spot and offering free noodles for tourists to taste. You are all welcome to participate in our intangible cultural heritage themed activities during the National Day holiday. Thank you.

Jimu News:

In recent years, the cultural and tourism market has been "hot." However, we have also noticed that the cultural and tourism market has also seen some safety incidents, regulation violations and other problems. What measures have been taken to advance the development of the cultural and tourism market in a steady, secure and orderly way? Thank you.

Zhang Zheng:

We will have Mr. Ming Wenjun answer this question.

Ming Wenjun:

Thank you for your question. In recent years, the cultural and tourism market has been very hot, which is directly related to the people's sense of happiness and fulfilment. In the process of development, there are indeed some problems as you said, including some security risks, unreasonable low-cost tours and ticket scalping. We have attached great importance and paid much attention to these issues. In our work, we have followed three very important principles and have strived to take them as our ultimate objectives, ensuring that travel is safer, the market is more orderly and services are more convenient.

We have always given top priority to ensure safer travel. We have continued to improve the working mechanism for workplace safety and ensured that the primary responsibilities for workplace safety have been fulfilled. During important periods such as festivals and holidays, flood seasons and summer vacation, we have made arrangements for work to be done on the safety of the industry and have urged the industry to strengthen safety precautions. In addition, travel tips have been issued through multiple channels and by multiple means to enhance tourists' safety awareness. Some of the tips are very detailed. For example, we have worked with departments of public security and transport to regulate the use of passenger safety belts, as ensuring the safety of tourists' lives is our top concern. At the same time, we have worked with meteorological departments to launch meteorological warning services for tourism. During the summer vacation period this year, a total of 833,000 meteorological disaster warning messages were sent to 222,000 tourist groups, ensuring the travel safety of tourist groups.

We have always strived to ensure a more orderly market. In order to solve the problem of ticket scalping, we have worked with public security authorities to strengthen governance, implemented real-name ticket purchase and real-name admission for large-scale performances and have increased the proportion of tickets sold to the public for large-scale performances from 70% to 85%, increasing the supply of tickets. At the same time, we have strictly investigated illegal activities such as ticket information scalping and speculation, as well as protected the legitimate rights and interests of consumers in accordance with the law. In order to solve the problems of "unreasonable low-cost travel and unlicensed travel services," we have continued to carry out a series of special operations targeting these problems. Since the beginning of this year, more than 40,000 pieces of illegal online marketing information have been cleaned up. Over 2,200 cases have been investigated and prosecuted. Typical cases have been made public, deterring violations of laws and regulations. We have strengthened the development of the credit system, guided and urged all localities to strengthen the identification of non-credit-bearing subjects, which includes dishonest enterprises and individuals in the key supervision list, implemented more targeted regulations and have made those who have lose credibility pay the price.

More importantly, we have always kept in mind the objective to ensure easier access to government services. We have developed the "Cultural and Tourism Market Pass" APP, which makes government services more convenient. People can submit applications for and check the progress of high-frequency government service items anytime and anywhere. In order to enhance public satisfaction, we have also continued to improve the evaluation system for government services within the cultural and tourism market to enhance the quality of services. At the same time, we have regulated law enforcement and inspections involving enterprises, introduced the list of items, specified the standards for areas of discretion, guided the advancement of measures and methods, such as "the law-abiding are let be," "no punishment for a first offense" and "quick handling of simple cases," provided smooth channels for reports and complaints as well as have responded to public appeal in a timely manner.

Tomorrow is the National Day holiday. I would like to take this opportunity today and also invite friends from the media to jointly remind tourists to make reasonable arrangements with their itineraries, enhance safety awareness, take a prudent approach to choose low-cost tourism products with significantly lower prices than the cost, cautiously participate in high-risk projects and to not go to areas that are undeveloped, not open to the public and lack security. Thank you.

The Poster News APP:

Popular scenic spots around the country are currently attracting large numbers of tourists. It has become a new option for ordinary people to follow performances, movies and poems to travel. What measures have been taken to enrich the supply of tourism products and improve the management and services of scenic spots? Thank you.

Miao Muyang:

Just now, Mr. Zhang, Mr. Ming and Mr. Chen introduced that a show, a song, a drama or an intangible cultural heritage have become the reasons for travel and an important tourist attraction. This leads to the conclusion that tourism has become an important way of life, learning and growing. Based on the diverse, personalized and high-quality needs of the people, the MCT in recent years has done a series of tasks focusing on these aspects.

First, we have been dedicated to the development of top-notch scenic spots. Second, we have created cross-regional tourism products. Third, we have developed high-quality tourist routes.

In the process of developing top-notch scenic spots, we have enhanced the cultivation of leisure and vacation products such as resorts, leisure districts, and key villages and towns for rural tourism while increasing the supply of tourism offerings including A-level scenic spots and red tourist attractions. At the same time, we have given precedence to the launch of integrated experiences such as industrial tourism and sports tourism.

As of now, there are 15,700 A-level tourist attractions nationwide, among which 339 are 5A-level attractions. There are 300 classic red tourism scenic spots and nearly 900 national and provincial tourist resorts, with 85 at the national-level. Moreover, there are more than 700 national and provincial tourism and leisure districts, including 164 at the national level. Additionally, over 9,500 villages and towns have been designated as rural tourism destinations, with 1,597 recognized at the national level. Eight villages, including Yucun in Zhejiang and Xidi in Anhui, have been selected as "Best Tourism Villages" by the U.N. World Tourism Organization, ranking first in the world. Furthermore, there are 26 national ski tourism resorts, 22 national industrial tourism demonstration bases, 74 national sports tourism demonstration bases, and 42 new spaces for immersive smart tourism experiences.

With respect to the creation of cross-regional tourism products, we have promoted the construction of the Beijing-Zhangjiakou Sports, Culture, and Tourism Belt, the Bashu Cultural Tourism Corridor, the Yangtze River International Golden Tourism Belt, and the Yellow River Culture and Tourism Belt. 

When it comes to the development of high-quality tourist routes, we have established a number of routes with prominent themes and distinctive features, launching diverse options focused on rural tourism, major national projects, food tourism, and self-driving tours. We released 14 eco-tourism routes in conjunction with the National Forestry and Grassland Administration yesterday, and we have launched 85 boutique national rural tourism routes. 

In the next phase, we will strive to promote the construction of world-class tourist attractions and resorts, intensify the development of high-level scenic spots and resorts, roll out several rural tourism clusters, create more cross-regional tourism products, and cultivate a number of renowned tourist counties.

Travelers currently face several difficulties and operational obstacles, such as complications in making reservations, difficulties in gaining entry to scenic spots, and challenges in processing payments. To address the issue of reservations, we have stipulated that tourist attractions operating below their maximum carrying capacity year-round do not require reservations. For those that do require reservations, we have guided scenic spots to reasonably establish and promote online and offline reservation channels for ticket purchases, simplify reservation procedures, and optimize reservation services. To tackle the difficulties in gaining admission to scenic spots, we have instructed tourist attractions to minimize the collection of personal information, comprehensively upgrade the online and offline identification systems for scenic spots, implement online reservations for ticket purchases and entry with vouchers, and continue to improve the compatibility and convenience of permanent residence permits for foreign nationals.

To address the payment difficulties faced by inbound tourists, we have vigorously promoted payment facilitation. We have pinpointed four types of tourist venues as key locations: national tourist attractions rated 4A and above, provincial-level tourist resorts, national tourism and leisure areas, and national key villages and towns for rural tourism. These venues are obligated to offer diversified payment services, including acceptance of foreign bank cards, QR code payments, and cash transactions. Currently, we remain committed to continuously guiding these four major types of key tourist venues in refining the reservation and verification procedures for foreigners' documents and payment methods, in a bid to optimize the payment environment for inbound tourism, enabling inbound tourists to enjoy a hassle-free travel experience in China.

At the same time, to facilitate inquiries from tourists, we have published information about 5A tourist attractions, national tourist resorts, and boutique rural tourism routes for all provinces and equivalent administrative divisions nationwide on the official website of the MCT.

Here, I would also like to ask all reporters to widely publicize the tourist information and travel routes available on the official website of the MCT.

Thank you.

United Daily News:

With regard to cross-Strait personnel exchanges, the Chinese mainland recently announced the resumption of applications for travel endorsements for Fujian residents to Matsu and Kinmen. According to previous statements from the MCT, group tours for Fujian residents to Taiwan island will not resume until direct sea passenger transport between Pingtan and Taiwan is reinstated. What is the current progress on this? What is the follow-up plan? Thank you.

Zhang Zheng:

Thank you for your question. We understand that some mainland residents have already started their trips to Matsu and Kinmen. Please also note that during the National Day holiday, Matsu and Kinmen are expected to experience a surge in tourism. We hope that mainland residents will soon be able to travel to Taiwan. Additionally, we hope that the Taiwan authorities will ensure the smooth progress of cross-Strait tourism and exchanges for the well-being of the people on both sides of the Strait. Thank you, and I wish you a happy National Day holiday!

Shou Xiaoli:

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

China Daily:

In recent years, the intellectual and cultural demands of the people in urban and rural communities have been rising. What efforts have been made to enrich cultural products and services at the community level and improve the service quality? Thank you.

Zhang Zheng:

We will have Mr. Chen answer this question.

Chen Binbin:

Currently, going to cultural venues to enjoy performances, visit exhibitions and listen to lectures has become a prominent interest among the general public. Meeting these needs and expectations is a key focus of our public cultural services. We are making progress in this regard from the following three aspects:

First, we've made it more convenient for ordinary people to access cultural venues and enjoy a wider range of services. I wonder if you've noticed that in many cities, in addition to traditional museums, art galleries, libraries and other facilities, there are many new additions called "city studies" and "cultural stations." These new cultural spaces are scattered throughout the community. They may not be large but offer rich content, making it easy for ordinary people to read books and enjoy small exhibitions and performances. These small but beautiful spaces have been developing rapidly. As of the end of August this year, the total number reached 38,800, reflecting an increase of 5,000 compared to last year. In addition to opening more facilities, we've also promoted extended and staggered hours for public cultural facilities. After the pandemic, the National Library's opening hours were extended to 9 p.m. in the summer and 8 p.m. in the winter. Recently, you may have noticed that museums and other public cultural facilities in Shanghai, Nanjing, Xi'an and Guangzhou have also extended their hours to accommodate the large number of tourists during the National Day holiday. The quality of services has also improved continuously. Over the past two years, online data has shown that citizen night schools for the arts have emerged in Shanghai, Zhejiang, Shandong and other regions, operated by public cultural institutions. There have been instances where 650,000 citizens scrambled for over 9,000 spots in these night schools, illustrating that studying art and recharging through night classes has become a way of life for many young people.

Second, we have organized a diverse range of cultural activities for people in villages and communities, focusing on their needs. Nowadays, people participating in cultural activities not only listen and watch but also want to sing and dance themselves, taking center stage. In recent years, we have continued to promote activities such as square dancing, choral singing and Spring Festival "village galas." On New Year's Day this year, General Secretary Xi Jinping praised the Spring Festival village galas, elevating them from a "small showcase" to a "diverse garden." In 2024 alone, there were 23,500 Spring Festival village galas, with nearly 100 million participants, greatly enriching rural cultural life and driving the development of rural tourism and industries. These activities are primarily organized by cultural and artistic groups that have formed spontaneously. As of this year, there are 460,000 registered groups, with many more unregistered. These cultural and artistic groups have become the main vehicles for mass cultural activities in our communities. This year, we will host a "Hundred-Group Art Show," featuring outstanding national mass cultural and artistic groups, which will encourage the participation of tens of thousands of groups.

Third, we have delivered high-quality resources at the community level through various public-benefit cultural projects. One of the biggest challenges in remote and impoverished areas is the lack of artistic talent. In recent years, the MCT has continued to promote the selection and dispatch of 187,000 professional cultural cadres and workers to community-level organizations, while also training 16,500 personnel for these cultural units. We have also actively promoted services for people with disabilities offered by public cultural institutions. For example, libraries at and above the county level nationwide have been required to provide services for blind readers. Currently, there are more than 35,000 reading seats designed for blind people and over 1.5 million Braille books available in libraries nationwide. To facilitate access for blind readers, libraries and relevant departments have collaborated to deliver Braille books directly to their homes and organize activities such as audio-described movies. They also provide intervention services for children with autism. Public cultural services aim to ensure that everyone in society feels a sense of warmth.

In the next step, we will further deepen reform across the board, open more cultural venues to the public, and bring additional cultural services closer to the people, continually addressing their ever-growing cultural needs. Thank you.

Shou Xiaoli:

One last question, please.

Phoenix Satellite Television:

In recent years, the Chinese Spring Festival and Mid-Autumn Festival have gained popularity in more countries. Recently, a series of policies have been introduced to facilitate exchanges between Chinese and foreign nationals, and the inbound tourism market in the Chinese mainland continues to thrive. What work has the MCT made to promote international people-to-people exchanges and cooperation? Thank you.

Zhang Zheng:

Thank you for your question. I will address it. International exchanges and cooperation in culture and tourism are important avenues for promoting international people-to-people connections. We have earnestly implemented the Global Civilization Initiative (GCI) and made significant efforts to advance the integration and mutual promotion of inbound and outbound visits.

For example, we have showcased the unique charms of Chinese culture and deepened cultural exchanges with other countries. We will continue to explore the value and significance of typical symbols of Chinese culture, promoting deeper and more substantive progress in exchanges and cooperation. In 2024, we organized "Happy Spring Festival" celebrations with nearly 500 online and offline activities in various forms across more than 110 countries and regions, with the symbolic red of China illuminating landmarks worldwide and reaching nearly 40 million people. We also launched the "Lucky Rabbit" and "Lucky Dragon" mascots for the Happy Spring Festival, which have been well received by people around the globe. By focusing on Chinese cultural symbols such as opera, tea art, poetry, food, online literature, games, and traditional lifestyles, we have organized "Tea for Harmony" Yaji Cultural Salons in many locations worldwide, promoting the introduction of Chinese cultural products to the global market.

For example, we have made significant efforts to improve facilitation and accelerate the development of inbound tourism. This year, we have seen a rapid recovery and expansion in inbound tourism. From January to July, there were 17.254 million inbound trips made by foreigners, representing a year-on-year increase of 129.9%. The MCT has conducted a comprehensive study of the challenges faced by 31 provinces and equivalent administrative units, particularly in 76 key tourism cities, in developing inbound tourism. We have developed boutique inbound tourist routes, using major port cities as hubs and connecting them to node cities, fostering regional coordination among provinces and administrative units. By combining cities, tourist routes, and regions, we have gradually addressed obstacles and bottlenecks in the development of inbound tourism. In collaboration with relevant ministries and commissions, we have continued to optimize visa and customs clearance policies, accelerated the recovery of international flights, improved payment facilitation, and enhanced the quality of comprehensive services for inbound tourism. As a result, traveling to China is becoming increasingly popular around the world.

In the next step, led by the GCI, we will continue to strengthen the construction of intergovernmental cultural and tourism cooperation mechanisms, create high-quality signature events, enhance international industrial cooperation, accelerate the development of inbound tourism, and expand international people-to-people exchanges and cooperation. Thank you.

Shou Xiaoli:

Thanks to Mr. Zhang and all the speakers. I also appreciate the participation of our friends from the media. Today's briefing is hereby concluded. See you next time, and I wish you a happy National Day holiday.

Zhang Zheng:

Happy National Day holiday. Thank you.

Translated and edited by Xu Kailin, Huang Shan, Fan Junmei, Zhang Junmian, Ma Yujia, Wang Yanfang, Li Huiru, Jay Birbeck, David Ball 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. Zhu Yonglei, vice minister of the National Radio and Television Administration (NRTA)

Mr. Dong Xin, vice minister of the NRTA

Mr. Yang Guorui, vice minister of the NRTA

Chairperson:

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

Date:

Sept. 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 vice ministers of the National Radio and Television Administration (NRTA), Mr. Zhu Yonglei, Mr. Dong Xin and Mr. Yang Guorui, to brief you on relevant developments and take your questions. Now, I'll give the floor to Mr. Zhu for his introduction.

Zhu Yonglei:

Friends from the media, good morning. First of all, on behalf of the NRTA, I would like to extend my gratitude to friends from the media and all sectors of society for your concern and interest in the NRTA and the radio and television and internet audiovisual work over the years. The NRTA has thoroughly implemented the guiding principles of the third plenary session of the 20th Central Committee of the Communist Party of China (CPC), Xi Jinping Thought on Culture, and the decisions and plans of the Party Central Committee to promote high-quality development of the radio and television and internet audiovisual sector. I would like to brief you on this work from five aspects:

First, we have advanced innovation in publicity and cemented and expanded mainstream thoughts and ideas. Radio and television media nationwide and the National Alliance of New Media in Radio and Television have provided people with authoritative news reports, vividly communicated Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, highlighted Chinese modernization and other themes, and produced down-to-earth programs focusing on people's lives and outstanding reports on major events and competitions.

Second, we have fostered diverse high-quality content to enrich people's intellectual and cultural lives. China has become a major producer of radio, television and online audio and video content. A diverse range of works have been produced and released. For example, from January to August this year, 148 TV dramas and online dramas in China have obtained distribution licenses, and excellent works such as "Blossoms Shanghai," "Always on the Move," "To the Wonder," "She and Her Girls," "City of the City" and "Joy of Life 2" have emerged. Achieving development by reducing production and enhancing quality has become a consensus of the industry. In addition, entertainment programs such as "Singer 2024" and the "China Online Audiovisual Annual Gala" have achieved high audience ratings. The Revisiting Classics channel launched this February has aired many popular classic works, attracting more than 200 million viewers.

Third, we have taken actions to address problems related to multiple charges and complicated operations to solve people's difficulties and troubles in watching television. Over 80% of households with cable television and IPTV are now able to directly access live TV channels as soon as they turn on their televisions. That is, they can watch CCTV 1 directly once they turn on their TVs. In addition, 200,000 hotels and 11 million hotel rooms have also realized easy access to live TV channels. In the first half of this year, we have focused on addressing the problem of complicated operations. A total of 560 million cable television, IPTV, and internet TV terminals have achieved the goal of reducing the number of subscription options by over 50%. People used to complain about excessive subscription options. Now they have been reduced by half. Cable TV and IPTV have completely got rid of advertisements that appear when the TV is switched on. Over 200 million TV users have realized the use of a single remote control to watch TV. In the past, the operations for watching TV were complicated. There were two remote controls, one controlling the TV, and the other controlling the set-top box. Now, more than 200 million users can use a single remote control to watch TV. The Academy of Broadcasting Planning, NRTA has developed a new three-mode universal remote control that can control both the TV and the set-top box. The Academy of Broadcasting Science, NRTA has developed eight miniature set-top boxes that are only the size of a USB flash drive and can be hidden behind the TV. In the past, set-top boxes were relatively large and had to be placed in view. Now, these miniature set-top boxes that are the size of a USB flash drive can be directly inserted into the back of the TV, with which people can still watch TV. At the same time, we have also launched a series of measures to diversify TV content and user experiences and promote mutual empowerment between televisions and smaller-screen terminals. This August, the proportion of active users of live TV channels increased by 10 percentage points over the same period last year, which is also the highest in the past three years.

Fourth, we have stayed committed to innovation and pushed the development of the industry to new heights. The central and provincial television stations have all achieved high-definition (HD) broadcasting. The HD rate of city-level and other local TV channels has exceeded 98%. Nine ultra-high-definition (UHD) television channels have been opened nationwide. With the coordinated development of cable TV networks and 5G, the number of 5G users of radio and television has surpassed 28 million. Online audio and video have continued to prosper, with the number of users reaching 1.068 billion. Remarkable progress has been made in the upgrading of public services. In particular, the emergency broadcasting covering the whole country has played a positive role in this year's flooding season. In the first half of this year, the total revenue of the national radio, television, and online video and audio service industry reached 668.3 billion yuan, with a year-on-year increase of 7%, contributing to China's social and economic development.

Fifth, we have balanced domestic and international priorities while deepening international exchanges and cooperation. To support national diplomatic efforts, we organized events such as the Forum on China-Africa Media Cooperation and launched audiovisual exhibitions in various locations worldwide, showcasing China's radio, television, and online audiovisual programs to global audiences. Additionally, we facilitated the global distribution of TV dramas like "To the Wonder," "The Three-Body Problem," and "Blossoms Shanghai," enhancing people's understanding of China in different countries and regions. This concludes my introduction. My colleagues and I are now happy to take your questions. Thank you.

Shou Xiaoli:

Thanks to Mr. Zhu for the introduction. We'll now open the floor for questions. Please raise your hand if you'd like to ask a question.

Changjiang Daily:

The speaker just mentioned efforts being made to address issues such as the hidden costs of cable bundle deals and the complexity of current operations. What additional measures will be taken to improve users' audiovisual experience? Thank you.

Zhu Yonglei:

Let me answer this question. Thank you very much to the reporter. Addressing the issues of the hidden costs of cable bundle deals and the complexity of current operations is crucial as it affects the viewing rights of hundreds of millions of users. The NRTA has given this matter great importance and began working on it last year, and has achieved some interim goals, as I've just mentioned.

Next, in terms of addressing the issue of the hidden costs of cable bundle deals, we will further optimize the management system, strengthen supervision and inspection, and firmly prevent a resurgence of these practices. Positive progress has been made generally at present. As I just mentioned, the bundled package options have been reduced by 50%. It is necessary to comprehensively improve the service quality and audience's experience of cable TV, IPTV, and internet TV. In the second half of the year, we will also formulate some regulations and institutions and formulate and release service standards for cable television, IPTV, and internet TV to the whole society. We will also optimize the setting of the integrated film and television package of internet TV, which is also a paid package, called the integrated film and television package, so that consumers can access more and richer content.

Regarding the complex TV operations, we focused on households last year. As mentioned earlier, 81% of cable TV users and 86% of IPTV users nationwide can now access live broadcasts and CCTV-1 immediately upon turning on their TVs. This year, our focus is on addressing complicated TV operations in hotels. Many of you have experienced difficulties turning on TVs or accessing live channels when staying at hotels during business trips or vacations. By the end of this year, we aim to resolve these issues in most hotels across China. This will make watching TV in hotel rooms more convenient during your travels. We will also promote the participation of old terminals in hotels in the trade-in program, which implements the trade-in policy and encourages hotels to replace old TVs with UHDTVs. Before the end of this year, a new three-mode universal remote control will also be launched. The micro set-top box, which is only the size of a USB drive, will be put into use in large numbers. We are also actively encouraging operators and TV manufacturers to fully integrate set-top box functions into TVs, achieving integration of the set-top box and the TV. Our goal is to develop prototypes by the end of this year, and eventually make set-top boxes obsolete.

In addition, to consolidate the progress made in addressing multiple charges and complicated operations, the NRTA has also established a complaint mechanism. If people find any problems concerning bundled pricing and complicated operations, they can report these issues through the complaint hotline, emails, the official website, and the official Weibo account of the NRTA. They can also use complaint channels announced by the provincial radio and television administrations and operators. I believe that problems reported through these channels can be addressed and resolved in a timely manner. Thank you.

Science and Technology Daily:

We've noticed that there are some Ultra-high definition (UHD) programs broadcasting at present that bring a better experience to viewers. What are the NRTA's considerations for advancing the development of ultra-high-definition TV (UHDTV) in the next step? Thank you.

Zhu Yonglei:

This is a very good question. The NRTA is advancing this work with all efforts. We will have Mr. Yang to answer this question.

Yang Guorui:

Thank you for your question. We all know that TV has evolved significantly, from black and white to color, analog to digital, and standard-definition TV to high-definition. Now, we've entered the era of UHD. UHD has a resolution over four times that of high definition, providing viewers with sharper details, richer colors, smoother images, and a more immersive experience. At the same time, UHD not only performs well on large-size screens but also has obvious improvements in picture quality on small screens such as mobile phones, tablet computers, and vehicle terminals. Therefore, UHD will bring a brand new audiovisual experience to people on both large and small screens.

After years of hard work, China's video technology has progressed from learning standard-definition technology and catching up with HD technology to developing some core UHD technologies that are at world-class levels. We've made accelerating UHD development a key strategic task, following the approach of driving overall development by launching pilot programs in selected areas, making key breakthroughs, and upgrading the entire industrial chain. We planned to pilot projects in Beijing, Shanghai, and Guangdong, and selected several regions to promote UHD broadcasting on provincial satellite TVs. The Beijing and Guangdong pilots have launched in April and August this year, respectively, while Shanghai's will officially launch tomorrow. An important task of these pilots is to remove barriers in UHD content production, program broadcasting, network transmission and terminal presentation so UHD programs can truly enter ordinary households.

We will adopt an integrated approach to advance the application of UHD in radio and television, online audio and video, as well as TV screens and mobile phone screens. It is planned that by the end of 2025, 13 new UHD channels will be aired across the country, including CCTV and provincial satellite TVs. There will be over 20 UHD channels in China. By 2026, 11 more UHD channels will be added. At the same time, streaming platforms — including iQiyi, Youku, Tencent, Mango TV, Bilibili and Migu — will ensure that over 50% of their newly added programs annually are in UHD. At that time, UHD will become the primary presentation format for radio, television, and online audio and video, and people will be able to enjoy stunning and immersive audiovisual experiences at home.

To effectively carry out this work, we actively cooperate with the Ministry of Industry and Information Technology, China Media Group, and local Party committees and governments, and communicate closely with the National Development and Reform Commission (NDRC) and the Ministry of Finance (MOF). These joint efforts create a sound ecosystem for UHDTV development. For example, the NDRC, the MOF, and other departments have actively offered support and included UHD development in the scope of support as we implement major national strategies and build up security capacity in key areas while promoting equipment and consumer goods renewals. Additionally, as there are still cases where technical quality doesn't meet standards, we will work with relevant departments to establish a comprehensive quality certification mechanism to ensure users get a real UHD audiovisual experience, striving to make the UHD industry development a high-quality project and a popular project that satisfies the public. Thank you.

CNR:

Next week, we are going to celebrate the 75th anniversary of the founding of the People's Republic of China. Over the past 75 years, especially since the 18th CPC National Congress, great changes have taken place in China. I've noticed that the NRTA has launched a series of theoretical programs reflecting the development of our era. These programs tell the story of China's theoretical innovations in an accessible manner. What will the NRTA do to promote the development of these theoretical programs going forward? Can we expect to see more accessible theoretical programs that will resonate with viewers? We are looking forward to that. Thank you.

Zhu Yonglei:

Thank you for your questions. We'll have Mr. Dong answer these questions.

Dong Xin:

Thank you, Mr. Zhu. First of all, thanks very much to this reporter for raising very good questions. The primary responsibility of radio, television, audio, and video is to connect with the broader audience through programs or products, encouraging interaction and understanding of our society's development and the Party's principles and policies. Mr. Zhu has already provided an overall description in his introduction. I'd like to share some more information regarding the specific questions you raised.

You may have seen that the radio, television, audio, and video industry has recently launched many programs, such as a series of theoretical programs reflecting the development of the times, like "Thoughts Shine on the Journey" and "Nice to Meet You: Book List of General Secretary Xi Jinping." Of course, there are also many programs concerning daily life, including documentaries, TV dramas, micro-documentaries, and cartoons. Some are traditional TV programs and some are online works. Specifically, as you said, popular TV programs truly demonstrate real-life scenes of the people frame by frame, vividly disseminating the Party's innovative theories.

The radio, television, audio, and video industry has always taken publicizing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as a primary task. Particularly, our industry should thoroughly study and publicize Xi Jinping Thought on Culture. We use headlines, home pages and first screens to promote the Party's innovative theories, fully leveraging the unique role of audiovisual media to let facts speak for themselves. Facts are most convincing. Vivid audios and videos with multiple perspectives and various forms have been launched, aiming to better spread scientific theories to ordinary households, enabling people to learn and understand these theories, and enhancing cohesion and forging the soul of the society.

You mentioned a significant event: we're about to celebrate the 75th anniversary of the founding of the People's Republic of China. Local TV stations and online platforms have made extensive preparations, and we've had numerous discussions about it. I'd like to briefly introduce a few upcoming theoretical programs, such as "The Path to the Mountain of Knowledge — Book List of General Secretary Xi Jinping (Season 2)," the documentary "Cultural Exploration in China," the online documentary "Historical Moments of the People's Republic of China," and the cartoon "Follow the Traces of Time." These works will be presented to audiences in October as we celebrate the PRC's 75th anniversary. Our creators have worked hard on these programs. They've used real cases from various dimensions — historical, cultural and contemporary — to comprehensively demonstrate social development and people's happiness. These programs directly present the essence and practical achievements of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era in a vivid and touching manner. In the past, we've been moved to tears while watching TV, and I believe this time, we will also be emotionally stirred, perhaps even inspired to sing and dance. We're using the development process and precious historical moments since the PRC's founding to showcase the country's progress. These works demonstrate the vitality of Marxism's basic tenets in integration with China's specific realities and fine traditional culture, enabling viewers to envision the future. These productions are excellent. Please stay tuned. Thank you.

ThePaper.cn:

In the past two years, micro dramas have become very popular, with content rapidly evolving. However, we have also identified some issues, such as shoddy production and irregular charging practices. What follow-up measures will the NRTA take to address the future development of micro dramas? Thank you.

Zhu Yonglei:

You're referring to micro dramas. I'll ask my colleague, Mr. Dong, to address this question.

Dong Xin:

This is indeed an excellent question. Micro dramas have captured the attention of people across all age groups, from young adults to older people and even children and teenagers. As you mentioned, with economic and social development and advances in information technology, micro dramas have emerged as a new form of artistic expression and have developed rapidly. These dramas have played a positive role in promoting artistic innovation, meeting the diverse and multi-layered intellectual and cultural needs of the public, and contributing to economic and social development. They've produced numerous hits, flourishing alongside China's economic and social progress. However, we must also acknowledge the issues you've raised regarding content, dissemination and subject matter selection. I view these problems as developmental shortcomings — some we might call "noise" or even "black sheep." We firmly oppose these issues and must address them.

To promote the healthy and orderly development of micro dramas, the NRTA has conducted thorough and comprehensive research. As Mr. Zhu mentioned, we will strengthen coordination with various departments, commissions, provinces, autonomous regions, and municipalities, as well as all sectors of society, including private and state-owned enterprises. We aim to leverage the coordinating role of comprehensive social governance, balancing development with security and vitality with order. We'll give equal emphasis to regulation and prosperity, while simultaneously boosting development and reducing burdens. Our focus will be on deepening reforms and standardizing management. Let me briefly outline two key points:

First, we'll improve rules and implement comprehensive policies. Our primary focus is to promote prosperity and development, creating a more enabling environment. With advanced technology and high levels of participation, we need to provide more space for growth. Simultaneously, we'll prioritize regular oversight to address the aforementioned issues and maintain a fair, orderly and healthy ecosystem. Another crucial point is to bridge the gap between traditional and new media platforms. We aim to make the simultaneous broadcast of high-quality micro dramas on both large and small screens the norm. The NRTA is actively working on this initiative.

Second, we will continue to advance brand building. Branding is very important for the sustainable development of micro dramas, as is its added value, which encourages more participation. We're focusing on using the "micro drama+" format to empower various industries. Creating micro dramas for travel, exploring the world, and learning about specific fields are all key initiatives we're promoting to build strong brands. At the same time, to make micro dramas more vigorous, we have actively encouraged and promoted the implementation of supporting measures by major streaming platforms. These platforms should engage many public writers, promoters, and creators. There should be supporting measures for those who make great contributions, guiding the market allocation mechanism to shift focus from traffic promotion to content creation. This shift towards content creation aligns with broader trends in multimedia development and is what society as a whole hopes to see. We believe that with the joint efforts of the entire industry, the future development of micro dramas is still very promising. Let us look forward to that together. Thank you!

CCTV:

As we all know, the resolution adopted at the third plenary session of the 20th CPC Central Committee proposed deepening the reform of cultural systems and mechanisms. What are the considerations and specific initiatives for the radio and television industry to implement these reform tasks in the next step? Thank you.

Zhu Yonglei:

Thank you for your question. You've asked a very important and broad question. I will try to answer it. My response may be a bit lengthy, as this question is both very important and far-reaching.

This question is highly relevant to today's briefing theme. We know that reform is the fundamental driving force for high-quality development. Therefore, we will fully implement the guiding principles from the third plenary session of the 20th CPC Central Committee and Xi Jinping Thought on Culture and advance the high-quality development of radio, television, and online audiovisual services by deepening reform across the board. Our overall approach is to uphold the original mission of these media to spread the Party's voice and serve the people. We will maintain their basic attributes of ideology, public service and technological industry. We'll focus on the characteristic principles of "content + communication," "content + network," and "culture + technology," consolidating traditional radio and television while innovating in online audiovisual content. By integrating these efforts, we aim to drive systematic transformation across the industry over the next three years, opening new prospects for high-quality development. We will make our reform more focused and work towards the following aspects:

First, we'll build the systems for communications across all forms of media. We'll prioritize news reporting and strengthen radio and television media's capacity for news gathering, editing, and broadcasting. We'll enhance capabilities in theoretical promotion, thematic publicity, information publicity, and coverage of major emergencies. Particularly over the next three years, we'll accelerate the deep integration and development of radio and television media, transforming them into new mainstream media. We'll promote the in-depth integration and coordinated development of radio, television, and online audiovisual content, creating a new environment of mainstream public opinion.

Second, we will build a product and service supply system with many high-quality products, good experiences, and wide channels. In terms of content, we will improve incentive policies and make creation and production more active. In particular, we will encourage originality and support high-quality products, and strive to launch a batch of high-quality fine works every year. We will launch works such as "Minning Town," "A Lifelong Journey," "The Three-Body Problem," and "To the Wonder" every year, which have been popular for the past two years. Next month, on Oct. 11, we will also hold the first Conference on the Creation of High-Quality Products in Radio and Television of China, aiming to unite colleagues in the radio and television industry across the country and discuss how to create and produce more fine works. In terms of user experience, we will completely solve the problems of multiple charges and complicated operations through technologies and systems, realize the use of a single remote control to watch TV, and integrate TV and set-top boxes as soon as possible. We will make every effort to advance the development of UHDTV to give users a brand-new experience. In terms of channels, we will build a network for contents that gathers massive content, and connects both traditional television and radio and new media as well as online and offline platforms, including the expansion of various terminals, such as car TVs and public electronic screens, so that high-quality content can directly reach the community level and users.

Third, we will build an industrial system of radio, television, and online audiovisual technology led by advanced technology where the entire industrial chain is interconnected and coordinated, and market entities are active. We will vigorously develop new business forms of UHD, enabling people to see more UHD channels and content as soon as possible. We will speed up the development of a new radio and television network, which can carry more high-quality audiovisual services and provide better and diversified services. Meanwhile, we will improve industrial policies and actively foster future-oriented market entities and industrial clusters.

Fourth, we will build a high-level comprehensive governance system and security system for the industry. In particular, we will advance the legislation of the radio and television law and accelerate the establishment of a comprehensive governance system for the industry with complete policies and regulations, sound standards and norms, advanced technologies, and excellent systems and mechanisms. We will also build a new system for safeguarding the security of content, networks, and data so as to ensure the supply of safe and high-quality radio, television, and online audiovisual services for numerous households.

Fifth, we will build a multi-dimensional, coordinated, more effective international communication system. We will carry out multi-field and multi-level international exchanges and cooperation and build a Chinese audiovisual content brand with clear recognition and extensive influence. The NRTA is studying and formulating guidelines to promote the high-quality development of the industry and will also introduce a series of policies and measures. We welcome you to continue to pay attention to that. These are some of our preliminary considerations for advancing reform. Thank you!

Reuters:

In China, as elsewhere, entertainment programming including television can reflect and shape ideas about changes in the economy and household economics. Just this week, China has announced an important series of stimulus measures for the economy. In your view, what kinds of economic narratives should programming include to support development? And alternatively, are there themes or narratives that would not be helpful?

Zhu Yonglei:

Thank you for your question and for your interest in Chinese radio, television, and TV programs. Let me attempt to answer this question. I've always believed that media, including radio and television, plays a crucial role in reflecting and driving socioeconomic development. It's been the ongoing responsibility of Chinese radio and television media and professionals to promptly understand the needs and sentiments of the people. Through news reports and radio and television productions, we aim to reflect and promote high-quality economic and social development, foster social fairness and justice, and enhance people's well-being.

I don't know whether you have or haven't watched a BRTV program called "One Step Forward," which takes viewers into Beijing communities, focusing on some of the conflicts that occur during community governance. Some of these conflicts can be very intense and this program does not avoid these conflicts, but instead truly covers them, taking viewers to see how Chinese people and the Chinese government use the institutional strengths of China and the wisdom of Chinese people to resolve conflicts in social development. Another example is CQTV's program called "Focus Today," which also uses regular and constructive oversight through public opinion to promote the governance of the entire city. Of course, there is also "Yicai" on SMG, which is also a recognized all-media brand, using all methods of media to truly reflect China's financial hot spots in all dimensions. Through years of operation, it has faithfully recorded and even advanced China's economic structural reform, as it has promoted the economic development of China through reporting.

Of course, all the programs I just mentioned are all news and financial programs. In the sphere of TV dramas, online series, online movies and documentaries, there are also many other works that directly focus on conflicts during China's economic and social development as well as reflecting the struggles of ordinary people. For example, series you all are familiar with like "Minning Town," "Bright Future," "The Long Season" and "Wild Bloom," and documentaries such as "Towards a Shared Future" and "A Long Cherished Dream," are some of these works. These works share a common feature, that is, through using literature and art they reflect some of the problems within China's economic and social development, including how to solve these problems, and reflect the fighting spirit of the people under the leadership of the Party and the government. Not only do these programs reflect economic and social development, but they also bring inspiration to the viewers, including many government officials, which in fact contributes to China's social and economic development.

There are good and bad times in life as well as laughter and tears. The reason why these works are recognized and loved by their audiences is that they are rooted in reality, face problems head-on and focus on the present. People can see China's economic development, social transformation, the indomitable fighting spirit of the people as well as the vivid practice of Chinese modernization.

In the next step, we will still need to work on two aspects: First, radio, television and online audiovisual media outlets should continue to record and actively promote China's economic and social development, so as to enable audiences and listeners in China and even around the world to have a comprehensive and accurate understanding of developing China in a timely manner. Second, more programs that express the fighting spirit of ordinary people and depict the development of our entire country in the new era should be created, so as to offer people who are working for Chinese modernization a boost in spirit. That's all from me. Thank you!

Jilin Radio and TV station:

The Revisiting Classics channel is currently very popular. The launch of such a public service channel has enriched the spiritual life of the people. What are the next steps in the development of this channel? Thank you.

Zhu Yonglei:

As I just mentioned, this channel is very popular with a total of 200 million viewers. Mr. Yang is in charge of this work. We will invite him to answer this question.

Yang Guorui:

Thanks to this reporter for their attention to the TV channel Revisiting Classics. Just now, Mr. Zhu also mentioned that in the past two years the NRTA has been advancing efforts focused on addressing multiple charges and complicated operations. With these efforts, we have also deeply felt that excellent classical works are the eternal cultural needs of the people. Based on that, we have organized and planned the launch of the TV channel Revisiting Classics in a timely manner. This channel's characteristics I can summarize as follows: First, the excellent classical works that are broadcasted are carefully selected, being works that are very popular among the people and have endured for a long time. Second, there is no extra cost. Third, no commercial advertisements are broadcasted.

Since its official launch on Feb. 1 of this year, the channel has attracted widespread attention from society, with the number of viewers rising rapidly. According to our statistics, so far the Revisiting Classics channel has had 56.35 million subscribers and a total of over 2,700 episodes of excellent TV dramas, cartoons and documentaries have been broadcast with very good ratings.

In order to make effective efforts in our work related to the Revisiting Classics channel, the NRTA has meticulously formulated measures on channel operation and management, and has established corresponding working mechanisms from various aspects, such as policy support, program reserves, program editing and broadcasting, transmission coverage, publicity and promotion as well as sustainable development, to continuously advance and ensure the virtuous cycle and sustainable development of the Revisiting Classics channel through active innovation of business formats and services. In the next step, we will focus on the following areas:

First, we will improve the reserve of programs. We will continue to improve the working mechanism, and research, plan and determine the program list for the next quarter and even the next year in advance, make every effort to meet the viewing needs of viewers, and strive to ensure that everyone benefits when they turn on the TV. At the same time, we will also launch the 2025 screening and exhibition project of 100 classic works on the Revisiting Classics channel in due course. We will publicly release the list of classic programs for the year, and encourage all sectors of society to donate programs for the channel. 

Second, we will improve program editing and broadcasting. In a few days, we will celebrate the 75th anniversary of the founding of the People's Republic of China. The Revisiting Classics channel will broadcast excellent TV series throughout October, including "All Quiet in Peking," "Red Sorghum" and "Like a Flowing River." At the same time, we have also made coordinated plans and arrangements for the rebroadcasting of audience favorite classics, such as adaptations of the four great classical novels of Chinese literature.

Third, we will improve the publicity and promotion of the channel. We will further work on the promotion of the channel, program previews, and the research and literary and artistic review of classic works. We will actively organize activities such as introducing the Revisiting Classics channel to elderly care institutions and school campuses. So far, the channel has covered nearly 15,000 elderly care institutions and about 500,000 user terminals nationwide, receiving enthusiastic responses. We will continue to work hard to ensure classic audiovisual works reach more people, have more profound influence, and release greater spiritual strength on the new journey of the new era. Thank you.

Dragon TV:

The 34th Flying Apsaras Award ceremony was held last weekend and a batch of TV series were awarded. Ordinary viewers are most concerned about whether they can watch more excellent works on TV and online. What measures will be adopted to further enrich the high-quality content of radio, television, and online audio and video? Thank you.

Zhu Yonglei:

Thank you for your question, I will answer this. In the past few years, excellent TV dramas and online dramas have been produced one after another, with many highlights, from "A Lifelong Journey" and "The Knockout" to "Three-Body" and "Blossoms Shanghai." People all speak highly of these high-quality products. I think this is a very important achievement for TV dramas and workers in the TV industry in practicing Xi Jinping Thought on Culture. The NRTA has adhered to the people-centered approach to creation, and in accordance with the requirements of finding the right topic, telling a good story, and producing high-quality products, systematically planned major topics, strengthened planning, guidance and support, and advanced the creation and broadcast of a number of excellent works with profound ideas and original artistic expression. For example, we broadcast TV series over the past year such as "Ask on the Boundless Land," "Welcome to Milele," "The Eagle in the Sea and Sky," "Happy Grass" and "March Towards the Southwest." In particular, "The Flowers Blooming" aired during prime time on CCTV 1 recently, depicting the story of principal Zhang Guimei and her efforts to establish a high school for girls in a mountainous area of Yunnan, which is very touching. This drama now has a score of 9.0 on the popular review site Douban, which is very high. People feel that this drama is somewhat like the TV series "Minning Town" from previous years, which was a popular themed drama.

The NRTA has also actively improved the working mechanisms for the service, guidance and organization of literary and artistic creations, and the television drama producers and television literary and artistic workers have great enthusiasm. Another interesting phenomenon is that more and more filmmakers have been creating TV series and online dramas in the past couple of years. The famed director Wong Kar-wai directed the TV series "Blossoms Shanghai," which, as you all know, is phenomenal; Teng Congcong, an outstanding young director, created the online series "To the Wonder" this year; and the renowned director Zhang Yimou is currently serving as the supervising producer of the TV series "The Protagonist." This is a very interesting phenomenon.

At the same time, the NRTA is also working to arrange for good programs to be aired on good platforms at prime time. Recently, we issued the opinions on enriching the contents of television and further meeting the cultural needs of the people, introducing a series of specific measures. For example, TV dramas are encouraged to be aired on multiple TV channels and on online platforms and TV channels simultaneously. The TV series "The Great Sea Road," which launched recently, aired simultaneously on Jiangsu Satellite TV, Zhejiang Satellite TV, Hunan Satellite TV, Shandong Satellite TV and Xinjiang Satellite TV, as well as video sites Tencent Video and Mango TV. This has greatly facilitated people's watching of the drama and also enhanced the dissemination and influence of dramas.

As another example, we have promoted coordinated broadcasting between traditional television and smaller-screen terminals as well as dissemination between online and offline platforms. For example, the online series "Imperfect Victim" has been aired simultaneously on TV stations and online platforms for the first time. The just-mentioned "To the Wonder" is the first online series to be aired on CCTV 1 during prime time, greatly enriching the content of TV screens. We have also established a coordination mechanism with the Ministry of Culture and Tourism, promoting and shaping tourism with culture. There is a phenomenon of "a drama makes a city popular," which integrates culture into the economy. The series "Meet Yourself," "Blossoms Shanghai" and "To the Wonder" are all examples of this. For example, some tourist resorts in Xinjiang have become popular because of "To the Wonder." That is the effect of TV dramas on local tourism. Series such as "The Great Sea Road," that is currently being broadcast, and "The City of Sunlight," that will be aired during the National Day holiday, can enable audiences to enjoy the beautiful scenery of Xinjiang and Xizang while experiencing the ups and downs of the series' plots. If you watch these two dramas, you will definitely have enthusiasm to visit these places and enjoy the beautiful scenery there. That's all from me. Thank you!

Shou Xiaoli:

Due to time constraints, one last question, please.

China Daily:

During the 2024 Beijing Summit of the Forum on China-Africa Cooperation, President Xi Jinping mentioned the airing of the Chinese TV series "Minning Town" in the Comoros when meeting with the president of the country, expressing that "China is ready to continue the cooperative partnership as the ‘Minning Town' has shown to build a China-Comoros community with a shared future." At present, what new initiatives will be taken by the NRTA to promote cooperation and exchange in radio, television, online audio and video between China and other countries? Thank you.

Zhu Yonglei:

Thank you for your question. This is a very good question. We will have Mr. Yang Guorui, who is in charge of international communication, answer this question.

Yang Guorui:

Thank you for your attention to this issue. I suppose many of us have watched the TV series "Minning Town," which is a true portrayal of the efforts that were taken to alleviate poverty in western China. After airing in the Comoros, the series has generated an enthusiastic response and has touched the people of the Comoros who also aspire for and pursue a happier and better life. In fact, "Minning Town" has been translated and broadcast in more than 50 countries and regions, achieving good results.

A good cultural program is worth a thousand words. Radio, television and online audiovisual works are important carriers for telling China's story to the world. In recent years, more and more Chinese works, including the series "Three-Body" and "To the Wonder," have gained popularity among overseas audiences. Just now, Mr. Zhu and Mr. Dong both mentioned that the series "Three-Body" has taken a leading position with the number of views in many countries and regions in North America and Europe, with its score on the overseas mainstream streaming platform Viki reaching 9.2 points. The series "To the Wonder" was selected for Long Form Competition at this year's Canneseries in France, successfully screening and receiving a lot of praise from overseas professional media and audiences. In addition, as Mr. Dong also just mentioned, short videos and micro dramas have also demonstrated strong competitiveness in the global market as new highlights of China's audiovisual content.

These Chinese radio, television and online audiovisual works not only enhance the understanding of China by the people of the countries and regions where they were broadcast but also connect common feelings of both Chinese and foreign people across borders, cultures and races. We have long been actively promoting the use of radio, television and audiovisual works as a bridge to link China with the world, enhancing connectivity between people. By continuously strengthening the cooperation and coproduction of Chinese and foreign radio, television and audiovisual works, as well as introducing excellent foreign film and television works, we have not only continued to enrich the supply of high-quality content but also have enabled people to appreciate the unique charm of different cultures. For example, in the near future, we will air on TV an array of excellent overseas programs including "Einstein and Hawking: Unlocking the Universe," "The Masters of Rome" and "Coco Chanel." You are all welcome to watch them when they air.

In addition, we have continued to build bilateral and multilateral mechanisms including the Forum on China-Africa Media Cooperation, the China-Arab States Forum on Radio and Television Cooperation and the ASEAN-China Media Week, continuously promoting policy communication, conceptual dialogue, industrial cooperation and personnel exchanges between China and foreign media. On September 5, President Xi Jinping said in his keynote speech delivered at the opening ceremony of the 2024 Summit of the Forum on China-Africa Cooperation that China will launch with Africa an initiative of cooperation on innovation in radio, TV and audio and visual programs. We will make every effort to advance the implementation of this initiative, continue to deepen media exchanges and cooperation between China and Africa and will ensure the attainment of more practical results, so as to make new and greater contributions to building an all-weather China-Africa community with a shared future for the new era. Thank you.

Shou Xiaoli:

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

Translated and edited by Xu Kailin, Yuan Fang, Li Huiru, Liu Sitong, Zhang Junmian, Wang Yanfang, 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.