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Read in Chinese

Speakers:

Zeng Yixin, vice minister of the National Health Commission (NHC)

Cui Gang, class-II counsel of the Bureau of Disease Prevention and Control of the NHC

Guo Yanhong, supervisor of the Bureau of Medical Administration of the NHC

Liu Dengfeng, supervisor of the Department of Health Science, Technology and Education of the NHC

Li Mingzhu, supervisor of the Department of International Cooperation of the NHC

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

May 15, 2020

Hu Kaihong:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Through arduous efforts, China's fight against COVID-19 has achieved major results with strategic significance. The prevention and control measures have also been normalized. Today, we have invited Mr. Zeng Yixin, vice minister of the National Health Commission (NHC), who will introduce China's regular prevention and control of COVID-19, and also answer some of your questions. Also present with us today are Mr. Cui Gang, class-II counsel of the Bureau of Disease Prevention and Control of the NHC; Ms. Guo Yanhong, supervisor of the Bureau of Medical Administration of the NHC; Mr. Liu Dengfeng, supervisor of the Department of Health Science, Technology and Education of the NHC; and Mr. Li Mingzhu, supervisor of the Department of International Cooperation of the NHC. First, let's give the floor to Mr. Zeng Yixin.

Zeng Yixin:

Friends from the media, good afternoon.

Since the outbreak of COVID-19, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, and through the nationwide arduous efforts, China's fight against the pandemic has achieved major results with strategic significance. Recently, General Secretary Xi Jinping has chaired a series of meetings of the Standing Committee of the Political Bureau of the CPC Central Committee, studying how best to deploy and improve the normalized prevention and control measures. Aiming at "forestalling imported infections and domestic resurgence," these meetings have strengthened guidance of the prevention and control efforts in key areas, consolidated current results and provided strong support for the comprehensive resumption of the social and economic order. On May 14, General Secretary Xi Jinping chaired another meeting of the Standing Committee of the Political Bureau of the CPC Central Committee, studying effective implementation of regular epidemic prevention and control measures. It was stressed that we must never allow our hard-earned previous achievements on epidemic control to be made in vain, and we must ensure the victory in the battle against extreme poverty and the completion of the building of a moderately prosperous society in all respects.

Recently, the Central Leading Group for COVID-19 Prevention and Control issued guidelines in regard to promoting orderly resumption of work and production whilst effectively preventing and controlling the epidemic. It requires coordination between epidemic prevention and control and social and economic development, accelerating restoration of normal daily life and carrying out orderly resumption of work and production with a normalized situation of epidemic prevention. The State Council Joint Prevention and Control Mechanism also issued guidelines on the work to implement regular epidemic prevention and control. Specific measures include focusing on precautions; implementing early detection, reporting, isolation and treatment; prioritizing key steps; ensuring support and supply, and strengthening leadership, to name a few. Notices have also been issued to further build the capacity of medical institutions in regard to reducing the risk of nosocomial infection. Efforts are being undertaken to inspect the resumption of work and production as well as epidemic prevention and control in enterprises and institutions. The Ministry of Education and the NHC also jointly issued a technical plan for epidemic prevention and control in primary and middle schools, as well as nurseries and kindergartens, to help ensure orderly reopening of educational institutions. In accordance with the requirement of the CPC Central Committee, regions across China have been working promptly to implement various epidemic prevention and control works.

The NHC has been actively carrying out international cooperation to tackle the COVID-19 pandemic, sharing "China's experience" and "Chinese methods" with the rest of the world, and providing as much assistance and technical support to countries and regions as possible. Over the past week alone, the NHC talked over the phone and via video links with health ministers from Central and Eastern Europe, Germany, the U.K., Japan, and South Korea. It also held technical communication with African countries, during which China introduced its experiences in dealing with the novel coronavirus. Many experts have been sent to a number of countries to support their work.

Currently, China's epidemic prevention and control work is being carried out in a steady and orderly manner, whilst the resumption of production and everyday life has been accelerated. However, we must still be aware that there are sporadic cases domestically, and there is still an arduous task in preventing any rebound. Clustered infections have been reported in parts of China's Heilongjiang and Jilin provinces, promoting further continuous spread of the virus. In addition, the epidemic situation outside China is still severe, imposing great pressure on efforts to prevent imported infections. The future trend of the COVID-19 pandemic contains many uncertainties. We need to raise awareness of the severe situation of "forestalling imported infections and domestic resurgence," as well as various potential risks. We also need to avoid carelessness, slackness and taking chances, and further secure the current achievement being made under the joint prevention and control mechanism. 

Next, the NHC will continue to implement the decisions and deployments of the CPC Central Committee and the State Council in regular epidemic prevention and control. The NHC will work hard to help establish a regular epidemic prevention and control mechanism in which cases are detected in a timely way, are promptly handled, precisely prevented and effectively treated. The prevention efforts in key regions and places will be prioritized. The NHC will continue to help enterprises, institutions and various types of public places to implement the prevention requirement, providing guidance to people regarding their personal protective measures. The NHC will also help schools to work out details of their reopening plans in order to ensure the safety and health of teachers and students. Although the epidemic prevention and control in Hubei province and Wuhan city has turned from an emergency plan to a normalized one, we exert every effort to strengthen and improve community-based prevention and control, and conduct nucleic acid tests and other works. The clustered infections in Heilongjiang and Jilin provinces need to be handled in a timely and prompt manner. The cause for the infection should be quickly investigated so as to curb any further spread. We need to strengthen the epidemic prevention and control efforts during the "Two Sessions." Border cities also need to build their capacity in epidemic prevention and control, improving their ability in monitoring, testing and treating, in order to effectively forestall the spread of imported cases. The implementation of all these measures will effectively protect people's safety and health, accelerate the restoration of production and everyday life, and provide strong support for the orderly resumption of work, production and schools.

Hu Kaihong:

Thank you, Mr. Zeng. Now the floor is open for questions.

CCTV:

Wuhan is conducting nucleic acid testing on all its residents. Why is the city doing this? The State Council joint prevention and control mechanism recently issued a guideline on regular prevention and control of COVID-19, stipulating that key groups will all be tested and other groups will all also gain access to testing. Can you please explain, in detail, how this will be implemented? Thank you.

Zeng Yixin:

The purpose of arranging nucleic acid tests for all residents in Wuhan is to better understand the range of the epidemic, proactively spot the infected, and strengthen the work of nucleic acid testing and infection screening. The massive testing aims to implement the principle of early detection, reporting, isolation and treatment. It also provides a vital guarantee for the coordinated resumption of work, production and schools and regular epidemic prevention and control. Based on a comprehensive and scientific evaluation of infection risk and testing capacity, the expanded nucleic acid testing will facilitate the work of targeted prevention and control of the pandemic, safeguard people's health, promote a reasonable flow of the population and accelerate restoration of social and economic activities and normal daily life in a comprehensive way. Other regions can also adjust and improve their epidemic prevention and control measures according to their own situations, just like Wuhan. The measures and ranges of nucleic acid testing can be dynamically differentiated in accordance with specific needs and testing capacity. It is a very arduous task to conduct nucleic acid testing for all residents in Wuhan. To guarantee the testing is effective, we have to make sure that the group of people tested earlier have no close contact with the following group of people tested. Technically, we also have to ensure a stable sensitivity if we adopt the sample-integrated solution in testing. It is indeed tough work, but we will make efforts to complete it. 

On May 7, the State Council joint prevention and control mechanism listed a range of targeted and practicable measures in its guideline on regular prevention and control of COVID-19. We have taken the following steps to implement the guideline.

First, we are expanding the testing range to lower the risk of the pandemic spreading. Various regions shall set and dynamically adjust their testing strategies and ranges while ensuring key groups are all tested and other groups also have access to testing.

Second, we are improving testing capacity to satisfy demand. We will enhance lab facilities in disease control institutions, medical establishments and customs; encourage social institutions to provide testing services; make more efforts in research, approval and marketization of testing equipment, solutions and detection reagents; and improve the production capacity of relevant equipment, testing kits and consumable materials. Quite a few approved testing kits have entered the market, but we still have lots of work to do to ensure they are constantly upgraded via unremitting research and development. 

Third, we are improving work mechanisms to improve testing efficiency. Relevant departments should shoulder their responsibilities and conduct testing in an orderly and organized manner. Residential communities should mobilize residents to assist in and cooperate with testing work and, in accordance with the law, observe prevention and control measures, such as sample collection, detection, isolation and treatment. The support and cooperation of the people are badly needed to ensure this work is properly carried out.

Fourth, we are reinforcing organization and management to further consolidate the work of testing. Governments at all levels should make strengthened testing an important part of their work for regular prevention and control of COVID-19, provide more policy and financial support and rapidly improve nucleic acid testing capacity, which will cement the achievements we have made in epidemic control and effectively prevent a rebound of the epidemic. 

That's it. Thank you.

TASS:

What do you think of China's cooperation with the WHO and relevant countries since the outbreak of the epidemic? I heard that China rejected the WHO's request to send a mission to visit the P4 lab in Wuhan. Is it true? Thank you.

Zeng Yixin:

Mr. Li Mingzhu will answer your questions.

Li Mingzhu:

Thank you for your questions. Amid the grave and complex global epidemic situation, China is faced with arduous tasks of preventing imported cases and guarding against domestic resurgence. While ensuring effective prevention and control of the disease at home, we have actively carried out international cooperation. At the multilateral level, we have worked closely with the WHO and the G20, implementing cooperation initiatives proposed by the two organizations. At the bilateral level, recently we held a video conference of health ministers from China and central and eastern European countries, a China-U.K. health ministers dialogue and a video conference for the health ministers of China, Japan and South Korea. These are all exchanges at the government level. In terms of technical issues, we have held video conferences with 12 African countries on the sharing of experience in fighting COVID-19. In addition, at the request of relevant countries, we have sent 21 teams of medical experts to 19 countries to help fight against the virus. Their work has been highly appreciated at the local governmental and public levels.

The WHO, as a specialized agency of the United Nations, plays an important leading role in coordinating global health issues. China attaches great importance to its cooperation with the WHO, and firmly supports the organization in organizing global anti-epidemic cooperation. Since the outbreak began, we have been sharing information with it, as well as the broader international community with an open, transparent and responsible attitude. We have established a mechanism for technical exchanges with WHO experts, and held many technical exchange meetings. We also invited WHO experts to conduct field visits in China. From Jan. 20 to 21, we received a team of its experts for a field visit in Wuhan. The team visited medical and health institutions, including laboratories. The members of the team had in-depth exchanges with local experts. From Feb. 16 to 24, we received the WHO-China Joint Mission on COVID-19. The mission conducted on-site visits in Beijing, Sichuan, Guangdong and Wuhan, and undertook comprehensive and in-depth investigations into the epidemic situation, prevention and control measures, medical treatment as well as scientific research. They also gave China and other countries valuable and constructive advice on the prevention and control of the outbreak. The WHO has never asked to visit a specific lab in China, so the allegation that China rejected WHO's request to visit a lab in Wuhan goes against the facts. Thank you.

The Straits Times:

I have two questions. The first question is: Can you please comment on two specific allegations made by U.S. State Secretary Mike Pompeo that the National Health Commission had ordered virus samples destroyed on Jan. 3 and that China had not shared virus samples with other countries? My second question is: Why does the NHC insist on not including asymptomatic cases in its official tally, when such cases are proven to be infectious and clearly a cause for concern? Thank you. 

Zeng Yixin:

Mr. Liu Dengfeng will answer the first question.

Liu Dengfeng:

The allegations disseminated by these U.S. officials are purely out of context and intentionally mislead people. In the face of the pneumonia outbreak of unknown cause, pathogen identification was the primary task, which was also the basic work for scientific prevention and control. We attached great importance to this, and we immediately organized national high-level professional institutions to conduct the parallel identification of the pathogen. They worked around the clock, day and night, to identify the pathogen as soon as possible. In this case, we also maintained a high degree of vigilance against the pathogenicity of the virus, and organized experts to conduct comprehensive research and evaluation. To prevent the leakage of biological pathogen samples and ensure biological safety — and based on the comprehensive research and opinions of experts — we determined to handle the pathogen causing unexplained cases of pneumonia temporarily as class II highly pathogenic, and we made clear biosafety requirements for collection, transportation, experimental activities and destruction, etc. According to the relevant requirements of the "Law of the People's Republic of China on Prevention and Treatment of Infectious Diseases" and "Regulation on the Bio-safety Management of Pathogenic Microbe Labs," we issued relevant documents on Jan. 3 with the major aim of guarding against the risks of laboratory biosafety and preventing secondary hazards caused by unknown pathogens.

At the same time, in order to further strengthen and regulate laboratory biosafety work, we issued laboratory biosafety guidelines for pandemic prevention and control, which also played an important role in preventing biosafety risks. In fact, China's laws and regulations have set clear requirements for the storage, destruction and experimental activities of highly pathogenic microorganism samples. If the laboratory conditions cannot meet the requirements for the safe preservation of samples, the samples should be destroyed on the spot or transferred to a professional institution for safekeeping. All of these measures are clearly stipulated. At the same time, these are also work requirements set by laws and regulations for laboratory biosafety supervision departments.

Regarding the sharing of pathogenic microbial strains, China has always maintained an active and open attitude. China has always been an active contributor in the sharing of pathogenic microbial strains. For example, in recent years, in order to prevent a global influenza pandemic and under the WHO framework, we have provided many highly pathogenic influenza virus strains to the U.S., Japan, the United Kingdom, Australia, Canada and Russia. Regarding the sharing of novel coronavirus strains, we also have an active and open attitude and are willing to share novel coronavirus strains in an orderly manner within the framework of the WHO, further strengthen international cooperation and scientific research and promote the development, production and equitable distribution of COVID-19-related vaccines, diagnostic tools and therapeutic drugs. Thank you.

Zeng Yixin:

Let me answer the question regarding the reporter's concern about asymptomatic cases. In fact, this issue has been specifically studied by the NHC, mainly based on three considerations.

First, the asymptomatic infected people we are talking about actually comprise two groups. The first group includes the so-called recessive infected people. After they are infected with the virus, they have no symptoms from beginning to end, or the symptoms are very mild. The other group of people includes those who are still in the incubation period after infection. Symptoms may appear later, but there may be no symptoms at the time of testing, which is considered part of the incubation period. As such, they are neither appropriately classified as confirmed cases nor recessive infections because they are undergoing changes. So we refer to all these people as "asymptomatic cases," and this is how we handle them from a managerial perspective.

Second, you may notice that we report asymptomatic cases who are detected every day, in addition to the confirmed cases and suspected cases. There is a particular part of our reports dedicated to reporting asymptomatic infected people, so our information is open. We are also reporting how many asymptomatic cases have turned into confirmed cases on a daily basis. Our information is open, intact and complete.

Third, we pay the same attention to asymptomatic cases as to suspected and confirmed cases, and we are also taking corresponding isolation measures and strict medical observation measures. Some individuals gradually develop symptoms and become confirmed cases, while some of them merely recover. We have been paying close attention and we are taking very strict measures to supervise these people.

This is why we still use the term "asymptomatic cases." We have studied this issue repeatedly, and this is why we do it this way. Thank you.

Bloomberg:

There have recently been media reports saying that on Jan 14 the NHC predicted an outbreak would occur. Six days later, on Jan 20, China publicly confirmed the existence of the human-to-human transmission of the novel coronavirus. What's your comment on this? Some American officials have claimed that China didn't share materials and data about the virus in a timely fashion. What's your response? Thanks.

Zeng Yixin:

I'd like to make an introduction first. The term "human-to-human transmission" you just mentioned is a simplified way of describing this phenomenon. The accurate and scientific way of saying this should be 'the abilities and means of the virus to spread among people.' Technically, bacteria and viruses both have the potential to spread among people, but they spread with different abilities and in different ways. Some of them indeed work in very different ways. For example, tuberculosis is a disease caused by bacteria that easily spreads through the respiratory system. Norovirus is highly contagious and commonly spreads through the fecal-oral route. Hepatitis B is an infectious disease caused by a virus that can be passed on through blood and from a mother to her child. AIDS is also caused by a virus, and it can be transmitted through sex and blood contact. The latter two diseases are not easily transmitted from one person to another. I want to first be clear about these distinctions.

At the earlier stage of the virus outbreak, it was hard to ascertain the causative agent, incubation period, spreading abilities, transmission ways and origin of the virus. The NHC immediately organized experts from multiple disciplines to study the etiology and epidemiology with limited clinically diagnosed cases to find out the manifestation of the disease and offer a scientific solution for outbreak control and prevention.

On the evening of Dec. 30, 2019, the NHC learned that there were patients with pneumonia of an unknown cause in Wuhan city. The leading Party members' group of the NHC attached great importance to this information. In the wee hours of the morning of Dec. 31, the NHC sent a working group and an expert team to Wuhan to conduct an investigation and guide the epidemic response.

On Jan. 1, 2020, the NHC set up a leading group to determine the emergency response strategy for the epidemic, carry out research and make arrangements. The NHC led experts and workers to provide guidance and urge Hubei province and Wuhan to carry out epidemic prevention and control along with relevant medical treatments.

On Jan. 3, the NHC organized scientific research institutions to carry out parallel laboratory testing of the samples for pathogen identification.

On Jan. 5, laboratory test results ruled out respiratory pathogens, such as the Severe Acute Respiratory Syndrome coronavirus (SARS-CoV), influenza, avian influenza and adenovirus. On Jan. 7, the Chinese Center for Disease Control and Prevention (China CDC) succeeded in isolating the first novel coronavirus strain. On Jan. 9, the expert team from the NHC made public research result of the pathogen, saying a new type of coronavirus was initially identified as the cause of the pneumonia of unknown cause.

On Jan. 10, testing kits were developed, which were then improved over almost seven days. Wuhan city organized tests of the relevant cases that had been admitted at hospitals in the city. On Jan. 12, the NHC shared with the WHO the genome sequence of the novel coronavirus in order to help other countries quickly diagnose patients and ring the alarm bell to the world.

On Jan. 13, Thailand reported the first imported case from Wuhan city. The NHC paid great attention to this development and requested that Wuhan city further intensified epidemic prevention and control. This firstly involved handling 'the entrance.' Wuhan strictly managed farmers markets and wildlife. Secondly it involved handling 'the exit.' Wuhan further strengthened body temperature monitoring of people at airports, train stations, bus stations and ports. Thirdly it involved reducing crowd gatherings. In addition, the NHC standardized local authorities' reporting and releasing of the information on the epidemic, meanwhile explaining to the public relevant policies and measures and providing them with knowledge on disease prevention.

We held a teleconference on Jan. 14 to deploy epidemic prevention and control efforts and stressed that there was huge uncertainty when it came to the emerging infectious disease caused by the novel coronavirus. Further in-depth research was needed to know the human-to-human transmission capacity of the virus and the way the virus passed between humans. The possibility of further outbreaks could not be ruled out. We also made clear requirements for Wuhan city and Hubei province. At that time, we were still in the process of further understanding the virus. There were many unsolved questions, and we were working hard to get answers.

We got a relatively accurate understanding of the human-to-human transmission capacity of the virus on Jan. 19 thanks to the unremitting efforts of expert groups and local medical workers. On Jan. 20, the executive meeting of the State Council classified COVID-19 as a Category-B infectious disease and took preventive measures against it on the level of a Category-A infectious disease. After that, the nationwide situation with respect to epidemic prevention and control became better known to all.

Now, when we look back, it was the first time in human history that we have faced COVID-19. In the early stages, under the strong leadership of the CPC Central Committee and the State Council, we accumulated evidences as fast as we could, deepened our understanding of the virus and explored methods of prevention and control. At the same time, by sticking to bottom-line thinking, we were highly aware of risks and focused on people's safety and health. We made prevention and control policies in accordance with the law and science and performed our duties to strictly implement them.

You mentioned the communication and exchanges with the United States. Mr. Li Mingzhu has offered some descriptions just now. I should say that we started communicating with the U.S. very early. We communicated in multiple ways and with high frequency. There were communications between health ministers, the ones between directors of the CDCs and those between experts and professors of the two countries. We had no reservation or hesitation in communicating. We did our best to share information and boost pandemic prevention and control efforts in the two countries and all over the world.

Beijing Youth Daily:

According to current data, the COVID-19 pandemic is still serious, but most countries in Europe and the United States have now gradually relaxed their control measures. Clustered infections have occurred successively in some parts of China, and this raises concerns about the possibility of a second outbreak. What is the Health and Safety Commission's stance on this? What countermeasures are being taken? Thank you.

Zeng Yixin:

For this question, I'll give the floor to Cui Gang.

Cui Gang:

Thank you for your question. At the beginning of the press conference, just now, Mr. Zeng has briefed us on the pandemic situation at home and abroad in recent times. You can also learn from various media outlets about the current pandemic situation. Generally, pandemic prevention and control efforts are still severely complex. Different countries have adopted varied prevention and control strategies and specific measures based on national willingness, social systems, economic development, public health resources and emergency response capabilities. You have just mentioned that some European and American countries, especially some countries where the pandemic situation is still serious, have loosened control measures for various reasons. At present, if the research on vaccines and specific drugs yields no results, the relaxed measures will increase the risk of a rebound in local cases and strengthen the complexity and duration of pandemic prevention and control. This will lead to greater challenges in prevention and control in our country.

Right now, our country has achieved periodic achievements and victories through prevention and control efforts. Our monitoring and early warning capabilities have been significantly improved, and our professional teams for disease prevention and control and medical treatment have been well-trained. We have accumulated effective experience in joint and group prevention and control, and the public's awareness and preventive capabilities have improved significantly. At the same time, with the implementation of regular pandemic prevention and control measures in China, we have determined that we will be able to manage the risks of a resurgence caused by imported cases.

Recently, secondary cases of imported cases have appeared in some parts of our country. This reminds us that, in the entire chain of enclosed management for prevention and control, if any link possesses weaknesses or blind areas, there will be a risk of disease transmission. In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, all relevant departments are being integrated into the actual prevention and control work, carefully investigated hidden risks and further-improved prevention and control measures. We have implemented the enclosed management from the doorsteps of the country to the doorsteps of family homes. There are several primary measures that we have adopted. They are as follows:

First, we are strengthening joint prevention and control efforts. The National Health Commission and other departments, such as foreign affairs, customs, immigration inspection, civil aviation, and railways, have given full play to prevention and control efforts and further strengthened measures to prevent imported cases. For example, we have been insisting on a 14-day medical observation at quarantine sites for all people entering China, and we have been developing these measures.

Second, we are highlighting key links. We have implemented "four early measures," which are early detection, early reporting, early quarantine and early treatment. We have strengthened the monitoring of fever clinics and infectious disease reporting online, and we have implemented the enclosed management of "screening-diagnosis-reporting-quarantine". At the same time, we have further expanded the scale of testing. Just now, Mr. Zeng introduced the overall arrangement and measures for promotion.

Third, we are strengthening targeted control. According to laws and regulations, we have scientifically delimited the area of prevention and control. If instances of community spread or clustering cases occur, we will take the most effective measures as soon as possible, promptly deal with cases, identify the origin of infection and effectively cut off the transmission route.

Fourth, we are strictly implementing the responsibilities of local areas, departments, institutions, and individuals. We will strengthen the management and prevention in key regions, key institutions, key places, key populations, fully implement all measures and leave no stone unturned. At the same time, we also continue to widely promote scientific publicity and knowledge on prevention and control, actively guide the public in scientific prevention and control and jointly create a good environment for all members of society to participate in together. Thank you.

Hong Kong Economic Herald:

Since the outbreak of the pandemic, China has taken a series of effective medical treatment measures. Currently, as the pandemic continues to spread globally, are there any medical treatment experiences or achievements that can be shared? Thank you.

Zeng Yixin:

Ms. Guo will answer this question.

Guo Yanhong:

Thank you for the question. Regarding the medical treatment of COVID-19, we always stick to the goal of increasing hospital admission and recovery rates and lowering the rates of infections and fatalities. We also adhere to the principles of "early detection, reporting, isolation and treatment" and "pooling together patients, experts and resources for centralized treatment;" thereby improving the results of treatments. Our experience can be summarized in the following aspects:

First, we work to ensure early diagnosis and treatment. Pre-screening and separating patients are emphasized, and new fever clinics and observation wards have been set up to detect and isolate suspected cases in a timely manner. The diagnosis and treatment processes have been further standardized and optimized. We have also strengthened laboratory capacity and opened up qualified laboratories of medical institutions. At the same time, third-party testing institutions have been encouraged to provide testing services to maximize testing efficiency and ensure that cases can be detected, reported, isolated and treated at an early stage.

Second, medical resources have been expanded rapidly to ensure the admission and treatment of patients. Faced with a situation wherein cases increased rapidly, we expanded resources in the following three aspects in order to improve the admission and treatment of patients. First involved rapidly expanding hospital beds. Huoshenshan Hospital, Leishenshan Hospital and makeshift hospitals were built in a very short period of time. At the same time, some hospitals with a comprehensive capacity converted certain wards into intensive care units. In a short time, the number of beds in Wuhan, Hubei province, expanded to more than 41,000 beds, including more than 9,100 beds for critical cases. Second involved quickly bringing together health care workers. From the first batch of medical teams dispatched on New Year's Eve (January 24), the number of medical staff that went to support Wuhan mounted up to 42,000 in less than a month. Third involved quickly mobilizing medical materials and equipment, including protective supplies. By expanding resources in these three aspects, the patients were admitted and treated appropriately.

Third, diagnosis and treatment plans have been constantly optimized and improved. The diagnosis and treatment plans and guidelines are not only a summary of the new achievement of clinical research and practice, but also serve to guide medical treatment and improve the level of standardization of diagnosis and treatment. In this process, we have been constantly applying the results of clinical studies and technological innovations, selecting effective drugs and treatment methods and incorporating the diagnosis and treatment strategies of clinical practice into the protocols. We have updated the diagnosis and treatment plan to the 7th version, and this version has been translated into multiple languages to be shared across the world.

Fourth, we have pooled medical resources on treating critically ill patients. According to the principle of "pooling together patients, experts and resources for centralized treatment," we assigned the most professional medical staff to treat severe cases. In the treatment of these cases, we have combined preclinical medicine knowledge and clinical practice, frontline treatment experience and multidisciplinary studies, medical treatment and management as well as medical treatment and nursing — using a combination of traditional Chinese and Western medicine, in particular. When treating severe cases, we also emphasized admitting and treating mild cases to prevent their symptoms from progressing to severe. In this way, we increased the recovery rate and reduced the mortality rate.

Fifth, we strengthened management for the whole process of treatment. We set strict standards for discharging patients. After the discharge, a series of work procedures were also carried out, which included following up on the situation of patients, conducting psychological counseling and more; these procedures were performed in order to strengthen the overall management of patients and promote the full recovery of the patients both physically and mentally. Thank you.

Hu Kaihong:

Due to time constraints, we will only take two more questions.

Cover News:

With the normalization of pandemic prevention and control, the public is growing more concerned about the development of vaccine research. Can you give an overview of recent development? Thank you.

Zeng Yixin:

We are all very concerned about vaccines. Since the outbreak of the pandemic, under the joint prevention and control mechanism and led by the Ministry of Science and Technology, we have set up a scientific research team. Under this team, we have a special sub-team that is responsible for organizing, coordinating and serving all units to promote vaccine research and development. At present, overall development is going smoothly. We have made such progress largely thanks to our institutional advantages. We can fully integrate resources and coordinate advantages in all aspects. Medical institutions, for example, can obtain viral samples from infected cases, cooperation between medical institutions and scientific research institutions is enabled, and cooperation between scientific research institutions and enterprises is also possible. Government departments also play a vital role. The whole process of vaccine development must be strictly examined and approved by the National Medical Products Administration (NMPA), the National Institutes for Food and Drug Control, and the Center for Drug Evaluation under the NMPA. Therefore, it is very important to take joint actions with these government departments. The Ministry of Science and Technology has been supportive in project establishment and security of funding. With its timely help, we have made further progress in vaccine research. This fully reflects the institutional advantages of our country.

We now have one recombinant adenovirus vector vaccine and four inactivated vaccines, which have been approved successively by the NMPA. As the NMPA has innovated its emergency approval procedure, we have been able to carry out the clinical trials of phase I and phase II simultaneously. So far, 2,575 volunteers have been vaccinated. Phase I includes 539 volunteers, some of whom have provided preliminary safety and protective antibody data. The other 2,036 volunteers in phase II are participating in the whole process of vaccination and the evaluation of safety and effectiveness. Volunteers will take two or three injections during the entire process of vaccination. We have not received reports of major adverse reactions up to now, and if all goes well, we will complete the clinical trials of phase II in July as planned. 

In addition to the adenovirus vector, we have also pushed ahead with other technical routes of vaccine research and development in a smooth and orderly manner. Some of them have been adjusted quickly when they were found to have unsatisfactory effects, as the research on this vaccine is both a scientific exploration and a skilled technique. Those institutions that have made rapid progress have started to continually submit application materials, such as pharmaceutical research, preclinical research and clinical trial schemes to the Center for Drug Evaluation under the NMPA. It is expected that some projects will be approved by the NMPA from June and will then enter the clinical trial stage. This is the overall situation. Thank you.

Hu Kaihong:

The last question, please.

Economic Daily:

We know that the epidemic prevention and control steps have now become a regular practice, and the economic and social order is recovering. The public is very concerned about when hospitals could resume their normal diagnosis and treatment work. Can you share with us the details of this? Thank you.

Guo Yanhong:

Thank you for your question. Medical institutions undertake the dual tasks of epidemic prevention and control and providing normal medical services. As epidemic prevention and control has now become a regular practice, medical institutions should focus on the following aspects in order to provide normal services again:

The first is to fully implement the requirements of early detection, early reporting, early isolation, and early treatment, especially to ensure full promotion of the role of medical institutions in the detection of cases. Medical institutions should ensure they can provide timely detection, rapid treatment, accurate control and effective treatment. 

The second is to reinforce the infection prevention and control measures in a targeted manner. In particular, medical institutions must put in place adequate zoning management, environmental ventilation, disinfection and isolation, and make comprehensive investigation of infection risks. At the same time, it is necessary to improve escort and visit management, strengthen the scientific protection of medical personnel, and implement standard preventive measures.

The third is to innovate medical service methods. The medical institutions should fully implement appointment-based treatment, and treat patients in different time periods. They should provide one-stop services by optimizing processes to reduce staff gathering and infection risks. At the same time, we must also make full use of the Internet in medical treatment and promote integration of online and offline treatment.

People's demand for medical treatment is rigid. In order to meet their needs, consideration must be given to the regular practices required for epidemic prevention and control, and the service normalization. For now, all localities are working to resume the normal state of medical services in accordance with the deployment and requirements of the NHC. Our statistics have shown that the current overall situation of medical services nationwide has recovered to a level of 85% compared to the same period last year, and in some areas, the medical service has been completely restored. Thank you.

Hu Kaihong:

This concludes today's press conference. Thank you all.

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Read in Chinese

Speaker:

Liu Aihua, director general of the Department of Comprehensive Statistics and spokesperson of the National Bureau of Statistics (NBS)

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

May 15, 2020

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office. Today, we have invited Liu Aihua, director general of the Department of Comprehensive Statistics and spokesperson of the National Bureau of Statistics (NBS), to brief you on the national economic performance in April. She will also take your questions. Now, I give the floor to Ms. Liu. 

Liu Aihua:

The country's economic performance continued to improve with major indicators manifesting positive changes in April. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the whole nation coordinated efforts to advance the work both of epidemic prevention and control and economic and social development. The positive momentum of domestic epidemic prevention and control was further consolidated and the resumption of work, production and market activities advanced steadily. Production demand improved gradually, basic industries provided strong support, and market expectations were generally stable. New driving forces appeared among the trends, and the economy showed more vitality. Major economic indicators show a sustained improving situation from March.

First, industrial production shifted from decline to growth and the growth rate of manufacturing rebounded noticeably. 

The total added value of industrial enterprises above designated size, which dropped 1.1% in March, grew 3.9% year on year in April, or up 2.27% month on month. In the first four months of this year, the total added value of industrial enterprises above designated size fell 4.9% year on year, which was 3.5 percentage points lower than the decline seen in the first quarter. An analysis by types of ownership showed that, in April, the added value of state holding enterprises went up by 0.5%; share-holding enterprises by 4.0%; enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan by 3.9%; and private enterprises by 7.0%. In sectoral terms, the added value of mining enterprises increased 0.3% year on year; that of manufacturing, which declined 1.8% in March, grew 5.0%; the production and supply of electricity, thermal power, gas and water grew 0.2%. High-tech manufacturing and equipment manufacturing witnessed fast growth. In April, the added value of high-tech manufacturing and equipment manufacturing grew 10.5% and 9.3% respectively, 6.6 percentage points and 5.4 percentage points respectively higher than industrial enterprises above designated size. Specifically, the production of cables, excavators and shoveling machinery, integrated circuits, industrial robots and micro-computers grew 43.8%, 40.8%, 29.2%, 26.6% and 26.2% respectively. 

Second, the decline of the service sector narrowed and the modern service industry showed good growth.

In April, the Index of Services Production dropped 4.5% year on year, 4.6 percentage points lower than in March. In the first four months, the Index of Services Production declined 9.9% year on year, 1.8 percentage points less than in the first quarter. Specifically, in April, information transmission, software and information technology services, financial services and real estate grew 5.2%, 4.4% and 1.1% year on year respectively; transportation, storage and post, wholesale and retail trades, and accommodation, restaurant and food service declined 5.0%, 6.6% and 33.7% respectively, which was actually a narrowing decline of 9.7 percentage points, 8.1 percentage points and 15.4 percentage points compared with that in March respectively. In the first quarter, business revenue of service enterprises above designated size dropped 11.5% year on year, of which that of information transmission, software and information technology services grew 4.0%. In April, the Business Activity Index for services was 52.1%, 0.3 percentage point higher than in March. Business activities for the majority of sectors were restored steadily. Among 21 sectors surveyed, there were 14 registering on the Business Activity Index at above 50.0%. The New Orders Index for services reached 51.9%, 2.6 percentage points higher than in March; the Business Activity Expectation Index stood at 59.2%, 2.4 percentage points higher than in March.

Third, market sales picked up and the proportion of online retail sales of physical goods continued to grow.

In April, the total retail sales of consumer goods reached 2.8178 trillion yuan ($396.84 billion), a year-on-year decline of 7.5%, which was 8.3 percentage points less than in March, or a month-on-month growth of 0.32%. In the first four months, the total retail sales of consumer goods reached 10.6758 trillion yuan, down 16.2% year on year, a narrower decline of 2.8 percentage points compared with the first quarter. Analyzed by different areas, in April, the retail sales in urban areas reached 2.4558 trillion yuan, down 7.5% year on year, and that in rural areas stood at 362 billion yuan, down 7.7%. Grouped by consumption patterns, the revenue of restaurant and food service was 230.7 billion yuan, down 31.1%; and the retail sales of goods were 2.5871 trillion yuan, down 4.6%. The retail sales of goods for basic living grew fast. Among the retail sales by businesses above designated size, that of grain, oil and food and that of beverages grew 18.2% and 12.9% respectively. Sales of upgraded consumer goods improved in April. Telecommunications equipment and cultural and office appliances rose 12.2% and 6.5% respectively, 5.7 percentage points and 0.4 percentage point respectively higher than in March. Online retail sales were active. National online retail sales in the first four months reached 3.0698 trillion yuan, up 1.7% year on year, while that in the first quarter dropped 0.8%. Of the total, the online retail sales of physical goods grew 8.6%, 2.7 percentage points higher than in the first quarter. And it accounted for 24.1% of the total retail sales of consumer goods, which was 0.5 percentage point higher than in the first quarter.

Fourth, investment in fixed assets improved and the decline of investment in high-tech industries narrowed significantly.

In the first four months, investment in fixed assets nationwide (excluding rural households) was 13.6824 trillion yuan, a year-on-year decline of 10.3%, which was narrowed by 5.8 percentage points compared with that in the first quarter; the month-on-month growth in April was 6.19%. Specifically, investment in infrastructure was down by 11.8% year on year, that in manufacturing fell by 18.8% and that in real estate development was down by 3.3%; however, these declines were narrowed by 7.9 percentage points, 6.4 percentage points and 4.4 percentage points respectively compared to the first quarter. The floor space of commercial buildings sold reached 339.73 million square meters, down by 19.3%, and the total sales of commercial buildings reached 3.1863 trillion yuan, down by 18.6%; these figures were 7.0 percentage points and 6.1 percentage points slower than the decline in the first quarter. Investment in the primary industry went down by 5.4% year on year; that in the secondary industry down by 16.0%; that in the tertiary industry fell by 7.8%. The decline was narrowed by 8.4 percentage points, 5.9 percentage points and 5.7 percentage points respectively compared with the fall in the first quarter. Investment in high-tech industries went down by 3.0%, 7.3 percentage points slower than the decline of the total investment and 9.1 percentage points slower than the decline seen in the first quarter, of which investment in high-tech manufacturing industries and high-tech service industries went down by 3.6% and 1.7% respectively. In terms of high-tech manufacturing, investment in manufacturing of computers and office devices grew by 15.4%. In terms of high-tech services, investment in services for commercialization of scientific and technological research findings, e-commerce services and professional technical services grew by 28.0%, 25.6% and 12.5% respectively. Investment in social sectors fell by 3.1%, which was 5.7 percentage points less than the decrease in the first quarter. Specifically, the year-on-year growth of investment in health sector and education sector shifted from negative to positive, standing at 4.7% and 2.9% respectively.

Fifth, the rise of consumer prices continued to fall and the decline of producer prices for industrial products expanded. 

In April, consumer prices went up by 3.3% year on year, 1.0 percentage point lower than that in March, or down by 0.9% month on month. For the first four months, consumer prices rose by 4.5% year on year. Grouped by commodity categories, in April, prices for food, tobacco and alcohol went up by 11.3% year on year; clothing went down by 0.4%; housing fell by 0.3%; articles and services for daily use rose by 0.1%; transport and communications were down by 4.9%; education, culture and recreation up by 2.0%; medical services and health care up by 2.2%; other articles and services up by 4.8%. Among the prices for food, tobacco and alcohol, prices for grain went up by 1.2% year on year, fresh vegetables fell by 3.7%, pork up by 96.9% and fresh fruits dropped by 10.5%. Core CPI excluding the price of food and energy went up by 1.1%, 0.1 percentage point lower than in March.

In April, producer prices for industrial products went down by 3.1% year on year, a decline expanded by 1.6 percentage points compared with that in March, or down by 1.3% month on month. Purchasing prices for industrial producers went down by 3.8% year on year, or down by 2.3% month on month. For the first four months, producer prices for industrial products and purchasing prices for industrial producers went down by 1.2% and 1.5% respectively year on year.

Sixth, the urban surveyed unemployment rate rose slightly and the employment for major labor force was generally stable. 

In the first four months, newly-increased employed people in urban areas numbered 3.54 million, 1.05 million less than in the same period last year. In April, the urban surveyed unemployment rate was 6.0%, 0.1 percentage point higher than in March, among which, the surveyed unemployment rate for population aged from 16 to 24, and from 25 to 59 was 13.8% and 5.5% respectively, 0.5 percentage point and 0.1 percentage point higher than in the previous month. The urban surveyed unemployment rate in 31 major cities was 5.8%, 0.1 percentage point higher than that in March. In April, the employees of enterprises on average worked 44.3 hours per week, 0.5 hour less than in March. 

Seventh, exports of goods witnessed a year-on-year growth and the trade structure continued to be optimized. 

In April, the total value of imports and exports of goods was 2.4966 trillion yuan, down by 0.7% year on year, 0.1 percentage point slower than the decline in March. Specifically, the total value of exports was 1.4074 trillion yuan, up by 8.2%, while that in March had been down by 3.5%; the total value of imports was 1.0892 trillion yuan, down by 10.2%. The trade balance was 318.1 billion yuan in surplus. In the first four months, the total value of imports and exports was 9.0713 trillion yuan, down by 4.9% year on year. Specifically, the value of exports was 4.7435 trillion yuan, down by 6.4%; the value of imports was 4.3278 trillion yuan, down by 3.2%. The trade structure continued to be optimized. In the first four months, the imports and exports of general trade accounted for 59.8% of the total value of imports and exports, 0.2 percentage point higher than in the same period last year. The imports and exports by private enterprises accounted for 43.2% of the total, 2.3 percentage points higher than in the same period last year.

Generally speaking, with main economic indicators improving in April, the national economy is gradually returning to normal. However, we should be aware that given the continuous spread of the pandemic abroad, the steady recovery of the domestic economy still faces multiple challenges. Under the complicated circumstances, we must coordinate efforts to advance both the prevention and control of the epidemic and the economic and social development under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. In the context of regular epidemic prevention and control, we must follow the general working guideline of making progress while maintaining stability, adhere to the new development philosophy, focus on the supply-side structural reform, make solid efforts to stabilize employment, finance, foreign trade, foreign investment, domestic investment, and market expectations, and comprehensively implement the tasks to safeguard residential employment, people's basic livelihood, market entities, food and energy security, the stability of industrial and supply chains and the operation at grassroots level. We must expand domestic demand, address difficulties facing enterprises, ensure economic fundamentals remained stable, facilitate stable and sound economic development, so as to ensure the victory of the fight against poverty and to build a moderately prosperous society in all respects.

Hu Kaihong:

Thank you, Ms. Liu. Now the floor is open for questions.

CCTV:

Good morning, Ms. Speaker. From the data you released just now, we can see the major economic indicators continued to improve in April. Is the recovery as expected? What's your overall opinion? Thank you.

Liu Aihua:

Thank you for your question. As is seen from the key data and the circumstances I just introduced, overall, the economy in April sustained the recovery and improvement first noticed in March, with major indicators showing positive changes. The main characteristics can be summed up in the following four aspects:

First, solid progress was made in the resumption of normal work and production. According to a quick survey by the National Bureau of Statistics in late April, approximately 85% of industrial enterprises above designated size, and over 70% of service enterprises above designated size, as well as more than 60% of qualified construction enterprises, resumed more than half their normal production level. Market expectations also show a month-on-month improvement. In April, the manufacturing purchasing managers' index (PMI) stood at 50.8%, which is within the "booming" range. The non-manufacturing business activity index registered 53.2%. The construction business activity index reached 59.7% and the service business activity index was 52.1%, both a slight rebound from March. This indicates enterprises expectations have improved month-on-month to some extent.

Second, production demand gradually improved. . The total added value of industrial enterprises above designated size grew by 3.9% year-on-year, shifting from a decline of 1.1% in March to a growth trend. From a sectoral perspective, the total added value in 28 of the 41 sectors recorded year-on-year growth and this is expanding. Regarding products, the total added value of 60% of 612 goods surveyed achieved year-on-year growth, 20 percentage points higher than the previous month. As far as related indicators are concerned, the industrial consumption of electricity in April grew 1.6% year-on-year, compared with a 2.8% decline in March. The decline also narrowed in the service sector. The service production index in April went down 4.5%, narrowing by 4.6 percentage points from March. Specifically, the decline in wholesale and retail trade as well as the transportation is narrower than the overall figure for the service sector. Investment activity is recovering. In the first four months of this year, investment in fixed assets registered a year-on-year decline of 10.3%, 5.8 percentage points narrowing compared to the figure in the first quarter. Specifically, the decline of investment in manufacturing, infrastructure and real estate narrowed at a rate between 4 and 8 percentage points. Market sales are improving, too. In April, the total retail sales of consumer goods fell by 7.5%, a decline narrowing by 8.3 percentage points compared with March. Among them, sales of upgraded consumer goods grew fast, especially telecommunication appliances, up by 12.2%. The total value of exports grew more than expected - up by 8.2% year on year.

Third, transformation and upgrading have continued. In the first four months of this year, new forms and models of online business continued to emerge. Online sales of physical goods during the first four months grew by 8.6%, which is 2.7 percentage points higher than in the first quarter, accounting for 24.1% of the total retail sales of consumer goods and a year-on-year rise of 5.5 percentage points. In terms of industries, the added value from high-tech manufacturing in April grew 10.5%, which was 1.6 percentage points higher than in March. High-tech products continued to maintain robust growth, with the production of cables, excavators and shoveling machinery for example increasing by more than 40% and industrial robots rising by 26.6%.

Fourth, employment and the price of commodities remained generally steady. In April, the unemployment rate in surveyed urban areas was 6.0%, which was 0.1 percentage points higher than in March, marking a slight month on month rise. In terms of unemployment figures, the rate of unemployed amongst those surveyed aged from 25 to 59 stood at 5.5%, 0.5 percentage points below the average unemployment rate. Regarding the price of commodities, prices continued to fall steadily. In April, the price of commodities increased by 3.3% year on year, which was 1 percentage point lower than in March. Food price in April saw an increase of 14.8% year on year, down 3.5 percentage points from March. The rise in prices of major agricultural products and byproducts including pork, fruit and fresh vegetables began to fall, with the decline expanding.

From the four aspects above, we can see that the national economy in April continued the momentum of recovery and improvements from March. Meanwhile, we can also see that these indicators were improving as a compensatory recovery. In terms of the performance of major indicators in the first four months of the year, the major indicators were still in decline. In the first four months, the total added value of industrial enterprises above designated size decreased by 4.9% year on year; the index of services production (ISP) declined by 9.9%; the investment in fixed assets decreased by 10.3%; the total retail sales of consumer goods went down by 16.2%; and the total value of imports and exports decreased 4.9%. These cumulative rates showed that the overall economy continued to decline, indicating that the overall economy has not yet returned to normal levels of previous years. Now that the epidemic is spreading overseas, its huge impact on the global economy is still evolving, which poses new challenges for steady economic recovery at home. Faced with such a complex situation, we have to consider the bottom-line when dealing with difficulties. We will continue to deepen counter-cyclical adjustments and carry out solid work to achieve stability in six key areas: employment, finance, foreign trade, foreign investment, domestic investment, and market expectations. We must also fully safeguard six key areas: jobs, people's basic livelihood, market entities, food and energy security, the stability of industrial and supply chains, as well as the smooth running of communities so as to accelerate the unleashing of potential in domestic demand and promote more bailouts for enterprises as well as maintain smooth circulation in industry, markets and the economy and bring economic development back to normal in all respects. This is my summary of the overall economic performance in April. Thank you.

China News Service:

Will the economic performance be stabilized in the current second quarter of this year despite continuation of the pandemic spreading in other countries, but with the prevention and control efforts expected to be normalized in China? Rebound in consumption and investment in April was modest, how would you forecast the economic trend in the ensuing phase? Thank you.

Liu Aihua:

Thank you for your questions. At present, the epidemic situation at home and abroad is relatively complex and grim, the future trend of the economy has concerned us a lot. Based on the data released over the past two months, I will explain my views on three points regarding the forthcoming economic performance.

First, we have shown we are capable of tiding over difficulties. The capability has come from our holistic industrial system developed over a long period, with a constantly-improving infrastructure and huge market. These advantages, which have not been seriously jeopardized or fundamentally changed, have played an essential role in supporting the economy. Over the past few months, when fighting against the pandemic, we have noted that all key industries critical to the national economy and people's livelihood have managed to maintain production which has ensured the rapid growth of medical supplies and the stable provision of daily necessities meeting the needs of 1.4 billion Chinese. More to the point, the trend of transformation and upgrading has been basically established. The major economic indices in April suggest that, despite the disruptions caused by the pandemic, industries that were emerging as new economic driving forces have kept on growing.  

Second, we are confident as we move forward. Our confidence develops from the coordinated prevention and control efforts as well as economic policies and measures that have proved effective. In March and April, the economy has shown signs of recovery, which itself shows the resilience of economic growth, giving us more confidence in hedging policies issued as macro-economic guidelines and expanding the resumption of normal work and production. From January to April, total planned investment in new projects have changed from negative to positive, rising 1.1% from a decline of 22% in the previous month, a turning point in terms of project reserves and capital support. Industrial electricity consumption achieved a positive rate in April. Based on the latest monitoring results in early May, growth in electricity consumption has continued to grow slightly. These indicators are evidence that there are conditions and a solid foundation for sustained economic recovery and improvement.

Third, we still face challenges. Because the pandemic has not been controlled effectively abroad, we remain uncertain of the impact of the epidemic on the global economy. Despite the strategic achievement made in preventing and controlling the virus at home, the momentum of recovery in the economic sector has yet to achieve a return to normalcy. Since the risks and challenges, such as the enormous employment pressure and the difficulties impeding the development of businesses and enterprises, remain huge, we should keep our bottom line thinking and enhance our awareness of risks. Therefore, we should promptly implement the existing macro-economic hedging policies, and on the other hand, make timely adjustments to our policies in response to changing situations and the demands of our enterprises, in order to help the economy return to normal. Thank you. 

New York Times:

The services number was not bad last month, but retail sales looked much weaker. If you take out groceries, they were quite weak. Are consumers in China becoming more cautious about making large value discretionary purchases? Thank you.

Liu Aihua:

Thanks for your question and for looking at the data carefully. Under current background of implementing regular epidemic prevention and control measures, we must view the economic situation under a bigger picture. The outbreak of COVID-19 has affected both production and consumption. At present, the recovery of production is slightly faster than that of consumption, which is related to the characteristics of the impact caused by the outbreak. Although the epidemic has now moved from a state of emergency to regular prevention and control, consumption and services based on gatherings and direct contact still need time to recover. The changes in the data also show that there is a gap between the recovery in the retail sales and that in the services sector. In April, the total retail sales of consumer goods declined 7.5% year on year, while the Index of Services Production dropped by 4.5% year on year. What's the difference between these two bits of data? The service industry is a multi-faceted industry, which includes not only direct contact and gatherings, but also services based on information technology. For example, some industries such as online education and telecommuting have benefited during the response to the outbreak of the epidemic. I think this can partly explain why the recovery in services sector is better than that in retail sales. That is the difference between the two indicators. Thank you.

CNR:

We noticed that in April, the total retail sales of consumer goods declined 7.5% year on year, down 8.3 percentage points from March, indicating that market sales are picking up. May I ask whether this recovery is sustainable? Given the continuous spread of the epidemic abroad, how will you further expand domestic demand in the next step? Thank you.

Liu Aihua:

Thanks for your question. In April, the total retail sales of consumer goods declined 7.5% year on year, a narrowing of 8.3 percentage points compared with March. Structurally speaking, the sale of goods for basic living grew fastest: grain, oil, food and beverages maintained double-digit growth. Second, sales of upgraded consumer goods maintained the momentum of accelerated growth. Meanwhile, sales of telecommunication equipment maintained double-digit growth, while the growth of cultural and office appliances also accelerated. Third, retail sales of some important items are actually recovering. For example, sales of automobiles were steady in April. The recovery of these goods with high proportion has helped the overall recovery of retail sales, and slowed down the decline.

For the next step, the momentum of current consumption upgrading will continue. The retail changes from month to month this year shows that the general trend has not changed. The retail sales of goods for basic living maintained steady growth, and that of upgraded consumer goods continued to grow rapidly. The industries and product sales once affected by the outbreak have shown momentum in their recovery under the current situation of epidemic prevention and control. Therefore, we think that the recovery of consumption still faces some challenges, and pressure still exists. However, in the short term, as the work and production gradually resume and the order of production and life gradually return to normal, the consumption environment will gradually improve. In the long run, there are conditions for the recovery of the consumption to be sustained. Thank you.

Economic Daily:

A continuous fall in the PPI shows although enterprises have now resumed work and production, there are still difficulties in restoring full capacity. Some have reported decreases in orders. Does this mean that China's industrial chains have not yet fully recovered from the impact of COVID-19? Also, how can our advantages in industrial chains be strengthened? Thank you.

Liu Aihua:

Thank you for your questions. In April, the PPI dropped 3.1% year on year, a larger decline than that in March. Structurally speaking, this decrease can largely be attributed to outside factors. Internationally, global crude oil prices fell sharply in April. The price of OPEC basket crude oil declined more than 70% in April compared to the high at the beginning of the year. As for other indicators, West Texas Intermediate crude oil futures dropped more than 40% in April compared with the previous month. The slump in the price of international crude oil has impacted prices in oil-related industries, thereby causing a drop in the PPI. At the same time, we should be aware of the decline in the demand in industrial markets. As I mentioned regarding restoring production capacity, nearly 85% of enterprises above designated size achieved 50% of their previous levels, which does indeed represent a certain gap from normal times. The construction and service sectors have shown similar features reaching even lower levels of production capacity. Changes in demand have influenced production to a certain extent. From the changing tendency of the PPI, on the one hand, we need to solidly promote the resumption of work, production and the markets, and release the huge potential in domestic demand. On the other hand, we must pay close attention to changes in the prices of major international commodities as well as the country's PPI. Generally, there is upward support for the PPI as order gradually returns to people's lives and production. 

Reuters:

Judging from the current trends, during which quarter do you expect the economy to come out of negative growth? Where should efforts be directed in expanding domestic demand? Investment or consumption? Thank you.

Liu Aihua:

Thank you for your questions. Your questions are focused on future trends. At present, on a monthly basis, industrial production achieved positive growth of 3.9% in April despite the gap from normal levels in former years and long-term trends. Other indicators such as investment, retail, exports and the service sector were all in a state of decline. In spite of the narrowed declines and positive growth in some indicators compared with the previous month, it is still a challenge to eliminate all the negative effects brought about by the epidemic during the early stages. It not only depends on the progress in domestic work resumption, but also the impact brought about by the international pandemic situation and external economic changes. Given the current situation, it remains to be seen how the economy will progress. However, as I said earlier, we have confidence, capacity and a solid base to maintain the momentum of restoration and improvement. 

Additionally, we will adhere to the strategy of expanding domestic demand amid the huge uncertainty of overseas demand. On one hand, we need to consolidate the basic function of consumption. On the other, we must strengthen the key role of investment. With regards to consumption, it is important to maintain growth in online consumption, whilst also recovering offline consumption. Key investment indicators have shown signs of recovery with many investment activities improving. Next, we will focus on strengthening public health governance capacity, upgrading industrial chains, consolidating the industrial development base, and fully allowing investment to play a key role. Thank you.

CNBC:

I have two questions. The first is about employment. What has the quality of employment been according to the current survey? The second question is about consumer spending. What is the current situation of consumer spending in first-tier cities?

Liu Aihua:

Let me answer your first question. As we mentioned, the surveyed urban unemployment rate shows small monthly changes, 6.2% in February, 5.9% in March, and 6.0% in April. The small fluctuations demonstrate overall stability. However, if we look at more indicators, there is still a large pressure on employment.

First, the scale of employment was lower compared with the same period last year. According to the statistics of the China's human resources and social security authorities, a total of 3.54 million new urban jobs were created in the first four months, a reduction of 1.05 million compared with the same period last year.

Second, the surveyed unemployment rate in urban areas was also higher compared with the same period last year. As mentioned, the figure for April was 6.0%, 1 percentage point higher than in the same period last year, indicating a large pressure on employment.

Third, there is a large pressure on employment for the major labor force. Take migrant workers as an example. We organized a quick survey at the end of April to determine the employment status of migrant workers. From what we learned, the employment of migrant workers improved to a certain extent after a series of measures to promote local employment. The number of migrant workers leaving home to work returned to about 90% of that in the previous year by the end of April, but there is still a gap from the normal level. As for college graduates, 8.74 million will enter the job market this year. So, there is a large pressure on employment for the major labor force.

This year, to show the great importance attached to employment, we put it at the top of the list of aspects to be stabilized and guaranteed. We adopted a series of targeted measures, under which some positive changes have taken place, although there is still a relatively high pressure on employment. Our quick survey showed that the rate of "unemployed on the job" in urban areas fell from 18.3% in March to 3.5%, reflecting an improvement in the quality and level of employment.

Your second question is about consumer spending in first-tier cities. I only have national data here. If you want to look at relevant data for a specific city, please contact the information department of the NBS, and we will provide you with an answer after the press conference. Thank you.

China Economic Information Service:

The turning point at the macro level during the second quarter is called the "second quarter phenomenon," but this year's situation may be slightly special. Judging from the trend so far, will there be a "second quarter phenomenon" this year? Thank you.

Liu Aihua:

Thanks for your question. It looks like everyone is concerned about the trend in the second quarter. I made some explanations based on the changes in indicators, the situation in China and overseas, and the overall context for next-stage development. I also introduced some of our views. On the one hand, we have the conditions, the foundation, and the confidence to achieve sustained economic recovery and growth under various policies and with market players' joint efforts; however, on the other hand, there are indeed large instabilities and uncertainties. Therefore, we must uphold bottom-line thinking, seize favorable conditions, use inherent strengths in economic operation, release the potential of domestic demand, and help companies overcome current difficulties. Eventually, the economy will return to normal.

Hu Kaihong:

The last question.

Hong Kong Economic Herald:

It is already May, and there is only one month left in the first half of this year. What do you think of the economic trend in the second half of this year? Exports account for a large proportion of China's GDP. Is there any hope for this year's GDP growth rate to maintain at least 6% as the pandemic continues spreading overseas? When will the global economy recover? Thank you.

Liu Aihua:

Thanks for your questions. The first question is about the future trend of the economy and the prospects for domestic economic growth, and you also touched upon changes in exports. There is indeed great instability and uncertainty in the prospects for exports. Many international agencies or organizations recently published forecasts for economic growth this year. The International Monetary Fund (IMF) forecasted that the world economy will decline by 3%, and the World Trade Organization (WTO) and the United Nations (UN) also made their predictions on global economic and trade activities. It is a large decrease. China's exports indeed face large risks and challenges as the risks of a global economic recession increase. Although the exports of goods increased by 8.2% in April, we cannot be overly optimistic about the prospects. Supported by a series of export stabilization policies, foreign trade companies have strengthened their adjustment capabilities, exerted their competitiveness, and diversified their arrangements, resulting in hard-won results. Despite this, it is difficult for China's exports to be spared from global economic contraction. Therefore, we should fully estimate the risks and challenges in this regard.

The second question is about predictions on economic growth for the whole year. I would like to highlight that we need to use our advantages, unleash our potential, actively respond to the current risks and challenges, help companies with current difficulties, and facilitate the Chinese economy to its normal track again. Thank you.

Hu Kaihong:

Today's press conference ends here. Thank you, Ms. Liu. Thank you all.

SCIO briefing on scientific research into COVID-19. [Photo by Jiao Fei/China SCIO]

Read in Chinese

Speakers:

Jin Qi, president of the Institute of Pathogen Biology, Chinese Academy of Medical Sciences;

Yan Jinghua, researcher at the Institute of Microbiology, the Chinese Academy of Sciences;

Wang Guiqiang, director of the Infectious Disease Department, Peking University First Hospital.

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office of China

Date:

April 27, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Since the COVID-19 outbreak, Chinese scientific researchers and experts have been going all out to make scientific breakthroughs in the prevention and control of COVID-19. Today, we invited three scientists to meet with you and brief you on the scientific research into COVID-19. They are: Jin Qi, president of the Institute of Pathogen Biology at Chinese Academy of Medical Sciences; Yan Jinghua, researcher at the Institute of Microbiology at the Chinese Academy of Sciences; and Wang Guiqiang, director of the infectious disease department of Peking University First Hospital. They will first introduce themselves before taking your questions. 

Jin Qi:

Friends from the media, good afternoon. I am from the Chinese Academy of Medical Sciences, and my specialty is research into the pathogenic biology of infectious diseases. I'm very happy to have the opportunity to be here today and to speak with you, from a scientific point of view, on the issues that currently concern us. Thank you.

Yan Jinghua:

Friends from the media, good afternoon. My name is Yan Jinghua, and I'm from the Institute of Microbiology at the Chinese Academy of Sciences. My focus is vaccine development and therapeutic antibodies. I'm very happy to be able to speak with you this afternoon. Thank you.

Wang Guiqiang:

Good afternoon, friends from the media. My name is Wang Guiqiang, and I'm from the infectious disease department of Peking University First Hospital. I have 36 years of experience working in diagnosing and treating infectious diseases. I've worked on the frontline to guide the treatment of critical and severe cases, and have engaged in scientific research into medication. Thank you.

Xi Yanchun:

Have two of you been to Wuhan?

Jin Qi:

Yes, I was working in Wuhan from early February to early April.

Wang Guiqiang:

No, I went to Anhui province at the request of the National Health Commission to guide the treatment of critical and severe cases there.

Xi Yanchun:

Thank you for your hard work. Now, let's open the floor to questions. Please identify yourself before asking your questions. 

Sputnik:

How is the vaccine research progressing? What kind of technologies are being used? Is there any need to conduct collaboration? If so, which countries will China collaborate with? Will China cooperate with Russia on inactivated vaccine development? Which aspects will the cooperation cover? Thank you.

Wang Guiqiang:

Let me answer first and Professor Yan can add something. First, vaccines have attracted a lot of attention from the public. In terms of epidemic control and prevention, vaccines are an important element, so everyone is greatly interested. The Chinese government launched the vaccine R&D plan at the very outset. Currently, China has supported vaccine research in five routes, including adenovirus vector vaccine, inactivated vaccine, nucleic acid vaccine and others. They are all making progress now. We have noticed that the fastest one is the adenovirus vector vaccine developed by Academician Chen Wei as it was the first to enter phase-I clinical trials and has now entered the second round of clinical trials. The vaccines being developed by the China National Biotec Group and Sinovac Biotech are also under clinical research.

As for your second question, I'm not clear about the situation regarding cooperation with Russia, but the R&D of a vaccine is a big project and a COVID-19 vaccine has no successful precedent to follow, therefore, it's a systematic project. We are currently cooperating with the U.S., Germany, U.K. and some other countries. As for cooperation with Russia, Professor Yan will fill you in on that.

Generally speaking, vaccine R&D is a systematic project. We all anticipate it will be successful and contribute to the epidemic control and prevention. Thank you.

Yan Jinghua:

Let me add something. As a researcher into vaccine R&D, I'm currently very eager to cooperate with international counterparts as different labs and enterprises each have their own advantages. If we can combine those advantages together, the process will be accelerated and we can acquire a safe and effective vaccine much sooner. Thank you.

Bloomberg:

I have two questions. The first is about the asymptomatic carriers. Is there any update concerning the way asymptomatic cases spread or about their causes? Also, there are patients in many places who have developed symptoms after 14 days of isolation. Does this indicate that the incubation period of the novel coronavirus is longer than 14 days? Thank you.

Wang Guiqiang:

This is also a problem concerning epidemiology. First of all, there are indeed asymptomatic carriers both in China and the rest of the world. Currently, many of the imported cases in China are asymptomatic carriers. Statistics from the U.S. also show that random testing in the street has found many asymptomatic carriers. There are two groups of people among asymptomatic carriers. The first group are those who tested positive in the nucleic acid tests whilst still in incubation period, thus haven't yet developed any COVID-19 symptoms. As time goes by, some of them will develop symptoms. Therefore, these people are actually typical cases in incubation period, rather than asymptomatic carriers in a true sense. However, currently we are still not able to distinguish them, thus they are categorized as asymptomatic carriers.

The second group are asymptomatic carriers in a true sense. This is a common feature of epidemics. While the epidemic rages, many patients get the virus but develop no symptoms, which is called a subclinical infection. Thus, these patients don't go to hospitals for medical treatment, but when we take a look back at the end, we may find that these patients were indeed infected. These two groups are similar in terms of the physical performance. 

The main problem of an asymptomatic infected person is actually the problem of contagion. We believe that asymptomatic carriers are clearly infectious, and they should be treated equally with other COVID-19 patients. The infectivity during the incubation period is relatively stronger, and the viral load of asymptomatic carriers is generally lower. Still, this is only a relative number, and it cannot represent the relationship between infectivity and non-infectivity. Therefore, a part of asymptomatic carriers may appear as a latent infection, meaning they will become patients later. Thus, isolated observation is very important.

So far as the asymptomatic carriers can only be detected by means of testing, China has made it very clear that the role of large-scale nucleic acid testing should be much strengthened with the hope that those asymptomatic infections can be discovered as soon as possible. At present, we do routine screening for those who come back to China from outside the country, and it is precisely this routine screening that has found so many asymptomatic carriers. We also conduct general screening of the general population and high-risk groups, with the aim of finding asymptomatic infected persons, and then isolating and observing them in time to avoid further transmission. Thank you.

Jin Qi:

Professor Wang has made some very marvelous remarks while answering those questions. I would like to add a few of words concerning the onset of the disease after the 14-day quarantine. My general point of views consists of two aspects. First, the cases are quite rare, and, second, they are normal. Why should I hold such views? Because people differ greatly in routes of transmission and degrees when they have been infected by the disease. More to the point, for each individual, the infection routes, immune systems and body reactions are different. All those factors combined lead to a variety of incubation periods, say, one, three or ten days. It also leads to different symptoms, such as diarrhea or fevers, tested at 37, 37.5, 38 or 39 degrees Celsius. I see nothing unusual from this point of view that an incubation period can still run over 14 days, though, in accordance with the statistics and dynamic layouts, the occurrence is extremely rare. Therefore, a quarantine for a given incubation period of 14 days is completely rational. Thank you.

Lianhe Zaobao:

The scientific community has yet to come to a definitive conclusion on the origin of SARS-CoV-2. There have been allegations that the virus may be man-made. What is the possibility of that? We also want to know if Chinese scientists are still tracing "patient zero" and if there is any progress? Lastly, the COVID-19 epidemic was first detected in Wuhan at the end of December 2019, and the Chinese authorities have taken very proactive anti-epidemic measures since Jan. 20, 2020. Looking back, could Chinese experts have done a better job, between the end of December and Jan. 20? Thanks.

Xi Yanchun:

We have invited Dr. Liu Peipei of the National Institute for Viral Disease Control and Prevention of China CDC. He will answer some questions related to virus research.

Liu Peipei:

Your first question is about whether SARS-CoV-2 is man-made, which is a hot topic of concern. In fact, as some of you may have noticed, there is a general consensus in the scientific community that the probability is very low. A Lancet paper co-signed by scientists from various countries illustrates this. In a word, the possibility that SARS-CoV-2 was engineered is extremely low. The most probable possibility is that the virus was transmitted from a natural host to an intermediate host and then to humans.

The second question is about the tracing of "patient zero", which many countries around the world are actively working on. Of course, we are also pressing ahead with this. Tracing "patient zero" is an arduous task, involving intricate data. In addition, as the epidemic lingers, a seropositive background is present in the population, but it is difficult to specify when people became infected.

Just as Director Wang mentioned, at the early stage of the epidemic, many people who were very likely asymptomatic have no medical records, which increases the difficulty of finding "patient zero". These two aspects have thus added to the difficulty. We hope scientists worldwide can press ahead with tracing "patient zero", and work together to fight the epidemic.

Xi Yanchun:

The last question remains unanswered. Experts sitting on the podium may add a few words to answer that question.

Jin Qi:

Just now, Professor Liu made a very good point that after every epidemic, the scientific and medical communities, as well as the people and society, will be concerned about one word, that is: "patient zero". It is a question that we can't evade in terms of epidemiological investigation. As Professor Liu said, it is a very difficult question for science to answer. For example, has the "patient zero" of the 1918 Spanish Flu ever been found? As for AIDS, "patient zero" contact with the disease was conjectured to have occurred in 1930, but later, new evidence emerged and the disease was suspected to have originated from a hunter in 1920 in a certain country. But that's just speculation.

One could say, this is the story from 100 years ago, and hasn't there been a breakthrough in science and technology since then? Let me give another example. In 2009, the H1N1 virus originated in the Americas and evolved into a worldwide pandemic. Has "patient zero" of the 2009 H1N1 pandemic ever been found? The answer is no. We can see that it is a really difficult task. The difficulty lies in the fact it requires a considerable amount of work and interdisciplinary collaboration.

I'll give you a hypothetical example to help you understand it. If "patient zero" was asymptomatic or had mild symptoms then he or she may not have seen a doctor at all. In that case, how could we identify him as "patient zero"? Even if we suspected he was the "patient zero" then he would be likely to deny it since there are no medical records to reference. Some may ask, will the serological epidemiologic investigation help as we have well-kept medical records. But if both A and B test positive for IGg, how can we determine which one contracted the virus earlier without additional information? We can't. The task is tricky. The medical and scientific circles are looking for an answer. Chinese scientists are also working on that. This is the first aspect. 

Second, as to what Chinese scientists did at the beginning of the outbreak, I can give you an example. My institute worked on the task of identifying the pathogen in the early days. For an infectious disease, that is the first priority in prevention and control. It is extremely important because only after finding the pathogen can we decide on treatment and other response measures. Since we got the samples on Jan. 2, our scientists slept for only three to four hours each day for a week. At an advanced age, I was burned out staying there. My colleagues did their utmost, and we identified the pathogen within a week. Was it fast? I think so. Thus, we can see from this example that Chinese scientists did play a big role in dealing with the outbreak at the early stage and made key contributions. 

Of course, if we are faced with similar problems in the future, we will be even more hardworking. And as science and technology advance, I believe it will take even less time to identify such a pathogen. This time it took us a week, but next time it might be only three or four days, or even less than that. 

Wang Guiqiang:

First of all, everybody pays a lot of attention to "patient zero", and that is certainly important for tracing the origin of the disease, containing the pandemic and preventing the next possible epidemic. But China is not the only country with a "patient zero" — each and every nation has its own "patient zero", and all of them need to be traced. This is important. 

Second, for any disease, people's understanding develops day by day. People say this new coronavirus is very cunning, and that's true. As we do more research on it, we find that it is different from other viral infections. Other infections may take one or two weeks to cure, and they are self-limited diseases. But this new coronavirus has a long clinical course, and that is obviously different from other coronaviruses. Also, the rate of asymptomatic cases is quite high, which indicates that the virus does indeed have a cunning side to it while interacting with our bodies. Etiology is an important part of the development of a disease, and so is the human body's reaction. If the immune system recovers, then the virus will be contained easily; if it does not, then one can remain infected for days, and the virus can be spreading for days on end. Thus, our understanding of the disease is a gradually developing process. Chinese experts did a great amount of work at the outbreak's early stages, and their research gradually progressed from etiology to epidemiology and clinical manifestation. Thank you. 

Reuters: 

How many new coronavirus tests have been done in China? Do you think the growth rate of testing in China is adequate or not? Should China carry out mandatory testing? Thank you. 

Jin Qi:

Testing technology, along with the implementation of testing, is an important part of the overall prevention and control of the pandemic, and it is also an important part of our pandemic containment strategy. How many people need to be tested, and what kind of people need to be tested? I think it depends on the prevention and control measures in place at the given time. Currently, new indigenous cases come in single digits, and the outbreak has been generally contained. What are our prevention and control measures now? We are guarding against imported cases from abroad and preventing a resurgence of the outbreak at home. Based on that, the testing strategy is currently "letting those who need to be tested get tested." This focuses on the key sections of the population. Who are they? They include, for instance, those who are infected, close contacts who are symptomatic and asymptomatic, people who come from hard-hit regions, and people who manifest similar symptoms like fever, etc. Also, we must consider people in nursery homes, schools that are recently reopened and hospitals. There are a lot of in-patients in the hospitals. If one virus carrier visits the hospitals and gets others infected, that causes hospital-acquired infection. This is why these people are the key populations that need to be tested. 

In addition, as the resumption of work and production continues, we will also try our best, for the sake of safety, to meet the needs of coronavirus testing in densely populated areas. The current testing strategy, including for those priority groups, aims to help guard against imported COVID-19 cases and a rebound in domestic cases. This is also scientific in my opinion. 

Regarding your question about how many people have undergone coronavirus testing in China, the statistics should come from relevant departments. I'm a scientist, so I have no idea about the accurate number. Overall, our current testing strategy matches that of pandemic control and suits China's national conditions. Thank you. 

ITAR-TASS:

China now has a good bit of experience facing the pandemic. Many Russians wonder whether we should wear face masks or stay at home, and which major methods do Chinese experts think can be adopted for COVID-19 treatment? Thanks. 

Wang Guiqiang:

Thanks. I will take your questions first. It's very important to wear face masks. At first, there was some misunderstanding that wearing masks did not reduce the incidence of respiratory infections. However, China's experience has proven that wearing them is definitely effective. We knew that those asymptomatic carriers would be a key source of infection and lead to transmission of the virus if they didn't wear masks. There were many such cases in China at the very beginning. It is therefore crucial to wear a mask. Currently, China is taking regular pandemic prevention and control measures. Just as Mr. Jin mentioned, we are now working against imported COVID-19 cases and a rebound in domestic cases. Under current conditions, China has effectively controlled the outbreak. However, we still emphasize that people need to wear masks in public places. Unless in large squares or parks, you may be allowed to take off the masks, but you still have to wear masks at small-space gatherings. As previously mentioned, there are still some imported cases in China, and a very small number of individuals have even shown a relatively long incubation period of the virus. Hence, China still attaches importance to wearing masks, and so do other pandemic-affected areas, in particular. In this way, patients will prevent the transmission of the virus, and healthy people will protect themselves from being infected. The Chinese University of Hong Kong has carried out research on this aspect, and the results show that wearing a mask can effectively curb viral spread via droplets. Therefore, it's one of the most effective measures to prevent the spread of COVID-19. Of course, we also emphasize hand hygiene and ventilation, among other preventive measures, which are very important too. 

Your second question concerns China's treatment experience. It's true that since the outbreak began, we have launched plans for diagnosis and treatment and continually revised them. Within around two months, we have come up with seven versions of treatment plans. This timeliness shows that we are continuing to adjust with real-time diagnostic and treatment strategies, especially treatment plans, according to our latest evidence and experience. At the very beginning, we didn't know which drugs worked, so we looked at the treatment of SARS and MERS for reference, and we recommended some medications that were already on the market, including Kaletra, interferon and others. With the increasing data, more drugs were later included, such as chloroquine phosphate. And then came the use of more technologies, including stem cell therapy, convalescent plasma therapy and blood purification treatment. All of these are based on our continuous understanding of COVID-19. The mortality rate of the disease is relatively high among the elderly and those who have underlying health conditions, so we also put emphasis on effective strategies, such as oxygen therapy, standard ventilation treatment and multi-disciplinary cooperation. Chloroquine phosphate is a distinctive treatment method. Objectively speaking, we are still recommending the use of chloroquine phosphate. Base on the initial data ranging from the experience at the cellular level to preliminary clinical studies, we have seen the certain efficacy of chloroquine phosphate. The drug has been sold on the market for many years, and we are relatively confident in its safety. Of course, we should also pay attention to its side effects and make risk evaluations on the elderly and those who have underlying health conditions. However, considering that there are no specific drugs yet, it can be recommended for use. 

In addition, convalescent plasma therapy has shown clinical efficacy against COVID-19. We have collected plasma from almost a thousand convalescent COVID-19 patients and offered the therapy for more than 800 patients. It has proved effective. What's more, for the first time Chinese researchers have conducted clinical studies on the use of stem cell technology in the treatment of COVID-19 cases. More than 200 critically ill patients in Wuhan have received stem cell treatment, which has shown apparent efficacy. Now we are summarizing the results. These preliminary studies can serve as a reference for other countries. We still need to accumulate more evidence and more carefully analyze our previous studies. We hope we can publish these studies so as to provide more experience and references that other countries can use when diagnosing and treating COVID-19.

Yan Jinghua:

Convalescent plasma therapy, which Mr. Wang explained, has proved effective in China. There is actually another therapy, which has not yet been put into clinical use. You might have noticed that many international companies, such as Pfizer, are developing COVID-19 monoclonal antibodies, which, compared to plasma, are easier to produce and have clearer targets. Researchers of the Chinese Academy of Sciences are also carrying out similar studies. The results of animal testing have been positive, and the treatment has proved safe from a toxicological perspective. As a result, large companies worldwide will probably work on monoclonal antibody therapy. It provides a good direction for treating COVID-19 before we have a vaccine. Thank you.

Associated Press:

You've mentioned that China is cooperating with the U.S. and Germany to develop a vaccine. I heard that a German company called BioNTech is working together with a Chinese company, and the vaccine candidate is ready for human testing. Could you elaborate on their cooperation? What role does the Chinese side play? Will China join the Solidarity Trial launched by the WHO?

Yan Jinghua:

Drug development involves huge projects. Vaccines are broadly defined as drugs. The development of drugs and vaccines takes a lot of time and requires a massive investment. So usually good products are derived from cooperation among large companies. As you said just now, more and more international companies are cooperating on vaccine development. The cooperation you just mentioned is between two companies, BioNTech and China's Fosun Pharma. The future of their cooperation and the point at which clinical trials will be held depends on BioNTech's R&D progress.

As to the Solidarity Trial launched by the WHO, I think it's a very good idea. If realized, the initiative will strengthen our communication with other countries and help us greatly accelerate vaccine development. As researchers working on vaccine development, we hope international organizations, including the WHO, can maintain close communication and cooperation with each other, thereby improving global access to vaccines. Thank you.

The Asahi Shimbun:

There are many papers on the mutation of the virus. According to a paper that was published by an expert Chinese team, there are two subtypes of the virus. One is an older S subtype, and the other is an L subtype that is more infectious. Which one do you think is mutating? Is there any new mutation of the virus? Do you think the virus has the same virulence and is equally contagious in other countries? Thank you.

Liu Peipei:

Different research teams around the world have suggested various methods for typing and subtyping viruses, and the method of subtyping S and L is just one of them. Regarding this method, you will understand after you finish reading the paper, as the author has attached an explanation that has clearly explained there is no evidence about any direct relation between the virulence of the virus and these two subtypes.  

Jin Qi:

I would like to add something more in terms of the aspect that Dr. Liu has mentioned. If my memory serves me right, this paper was published at the very early stages of the COVID-19 outbreak. From a scientific perspective, having enough strains available is a prerequisite for any evolutionary analysis of the virus. However, that paper was published very early on, and researchers had only obtained 100 or 200 strains for the analysis. But up to now, how many strains are there in the public database? I believe the media must know well of the number. Moreover, given the same data, different statistical methods and algorithms will lead to different results, and this has been widely recognized in the field of evolutionary analysis. Consequently, different papers, in terms of their results or assumptions, can be explained from different perspectives. I, personally, believe that this paper currently shows some limitations in terms of the number of virus strains and locations affected by the virus, as the virus had just occurred in some regions at that moment. But now the pandemic has swept the world, including Europe and America, so you can get more strains at different times and from various locations, and the results will accordingly be more accurate. When we look at the paper right now, we may interpret it in a different way. I think that with the large increase in the number of virus strains in the public database, the results of papers published in the future will be more accurate and precise. Thank you.  

Wang Guiqiang:

I agree with Mr. Jin. First, the mutation of pathogenic microorganisms is a very normal phenomenon. After mutations, you need a lot of data to prove whether a strain variation can be defined as a subtype. Hepatitis B has different genotypes, as well as different subtypes, and there are basic definitions for them. I'm also aware of this paper. As to whether the mutations mentioned in the paper can be defined as subtypes, the author later corrected his conclusion and called them lineages — not subtypes. This is because to define a mutation as a subtype, you need to have a large number of virus strains to make comparisons and find out those variation sequences; then you can determine whether to call it a subtype or not.  

Second, these two lineages are not directly related to the virulence or the contagion of the virus, which was also pointed out by the author of the paper. Of course, we cannot rule out the possibility that some variations may become more contagious, which is possible, but we need more samples to prove that. Thank you. 

Yan Jinghua:

The relations between mutations and pathogenicity rate and contagion, from a biological perspective, must go through sequence analysis and bioinformatics analysis, and the final results must be verified from a biological perspective. For example, a mutation of a virus, according to epidemiology or animal models, does have increased infection or virulence. This is my point of view. Thank you.

CRNTT:

We noticed some experts, including WHO Director-General Dr. Tedros Adhanom Ghebreyesus, have pointed out that the novel coronavirus might be with us for a long time. Many people fear that the epidemic may easily re-ignite. It may retreat in summer and return in winter. What's your opinion on it? Is it possible for this to happen? If this is the case, how can people protect themselves from the virus? The SARS outbreak in 2003 dissipated as the weather warmed up. Will COVID-19 transmission also change with fluctuations in daily temperature? Thank you.

Wang Guiqiang:

Thank you for your question. This is a question that many people are concerned about. As you mentioned, SARS disappeared in a relatively short time and hasn't returned so far. However, the novel coronavirus is quite different from SARS and MERS. It can remain active for longer and has a higher ratio of asymptomatic infection. More importantly, although the novel coronavirus is sensitive to heat (and can be inactivated) at 56 degrees Celsius for 30 minutes, it is impossible for the weather to be that hot. Therefore, it is unlikely to see a significant decline in COVID-19 cases in summer around the world. 

As for whether the COVID-19 might be with us for a long time, we can't exclude such a possibility. It is possible for it to re-ignite in crowded and stuffy places in fall or winter. That's why we think it is crucial to take globalized prevention and control measures. Having put COVID-19 under control domestically, China is facing a surge of imported cases. The world is not safe even if there is one country incapable of curbing the spread of the virus. China has made a phased achievement with a huge expense. Looking at the trend of the COVID-19 pandemic, I hope the whole world can band together, follow WHO advice, and confront the global fight together. This is very important.

Jin Qi:

I want to share my thoughts on this as well. I have met many people with a "SARS mentality," which means they take it for granted that the novel coronavirus came without casting a shadow and will disappear without leaving a trace, just like SARS in 2003. In fact, the two are totally different. We have been trying to find out whether a virus can be harbored in a human body and cause chronic diseases or seasonal epidemics. Once a person was infected with SARS, he or she developed a fever. That's why we could curb the spread of SARS after we put all patients with a fever under control. The precondition was that SARS-infected patients displayed an obvious symptom—fever.

Now, the situation with the novel coronavirus is far more complex. We have seen asymptomatic infection, also called subclinical infection or inapparent infection. It is challenging to spot asymptomatic patients when they show no symptom of infection at all. So, can you expect such a virus to easily disappear from human society? Unlike SARS, it is somewhat likely for COVID-19 to co-exist with us for a long time and cause seasonal epidemics, just like other coronaviruses do. Thank you.

Xi Yanchun:

I think we are still making progress into the scientific research of the disease, and constantly deepening our understanding of it. I believe that as time goes by, we will develop an increasingly clearer picture of the virus.

NHK:

With regards to the origin of the virus, scientists believe that the novel coronavirus most probably originated in bats from Yunnan province. However, it seems unlikely that the bats flew to Wuhan over such a long distance. Therefore, there are suspicions that the virus could have leaked from the Wuhan Institute of Virology during research. As specialists, what is your take on this? Thank you. 

Xi Yanchun:

Another question about the origin of the virus. Let's hear from Dr. Liu Peipei once again, and then our specialists here could add something.

Liu Peipei:

With regards to these conspiracy theories, the scientific community has reached a basic consensus, which is, the possibility of the virus being man-made is very low. Scientists from multiple countries co-signed a statement published in The Lancet elaborating on that. I also notice that a recent report by the WHO responded again to the conspiracy theories. It is generally believed that the possibility of the virus being engineered or leaked from the laboratory is very, very low. Thank you.

Wang Guiqiang:

Thank you for your question. You mentioned just now that bats are highly likely to be the host of the virus. And bats are found flying in every part of the world. Nowadays, infectious diseases know no borders because of such well-developed transportation. The momentum of the fast global spread of infectious diseases has been extremely obvious. People have often spoke of the concept of the world being a "global village." Infectious diseases used to spread locally within specific regions, from specific ecological reservoirs to specific human populations. Now, with such convenient transportation, any infectious disease can spread around the globe in 24 hours.

So why is the world concerned about the prevention and control of infectious diseases? Because its epidemic status has changed. At present, global transportation has become convenient and advanced, meaning any infectious disease can quickly spread worldwide. Thus, as COVID-19 spiraled into a pandemic, it has become difficult to say where the etiology is, which requires a thorough tracing back to the origin. Thank you.

Jin Qi:

Relating this question to previous ones, all of them are asking about tracing the origin of the virus. Here I would like to share my opinion on this topic. Why do we need to trace to the origin? Or, what is the purpose of tracing the virus? From my point of view, one of the main purposes is to find out the source of the pathogen of COVID-19. What will we do after finding the origin? We can formulate targeted strategies for epidemic prevention and control, so as to prevent similar epidemics from harming human society. I think that is one of the main purposes in tracing the origin. However, virus origin tracing is a very difficult scientific issue, as I mentioned previously when answering the question about "patient zero." Have we finished the virus origin tracing for the 1918 influenza pandemic, or AIDS, or the H1N1 flu that broke out in 2009? Scientists all over the world are working on it, but I think it's a difficult problem. Some scientists have suggested it could take decades, even a century. Just now I mentioned the 1918 influenza pandemic, which was a hundred years ago; sometimes we may never get the result. However, we are still working on it, which is important. Therefore, with regards to this issue, Chinese scientists are doing the same thing as scientists all over the world, which is making all efforts to discover the answer. By integrating multiple disciplines, including computational biology, bioinformatics, epidemiology and molecular epidemiology, we can get some clues to interweave into a mutual support network. On the basis of this network, we may finally find the result we're looking for. Thank you.

Xi Yanchun:

I would also like to add that there is a consensus that we need to respect and believe in science. And I don't think it is a responsible attitude for a media outlet or relevant individual to make hasty judgments without any facts. We need to give scientists enough time and respect. I believe that they will help us know more about the virus and prevent and control it more effectively. This will be the last question due to time constraints. 

CGTN: 

What has struck experts like you most in your research since the outbreak of COVID-19? Many topics were mentioned just now, including the origin of the virus and how its pathogenicity was identified quickly at the early stage. What's your task or target in the future? Could you give us a list of priorities?

Xi Yanchun:

Let's invite each expert to have some words. 

Jin Qi:

I certainly have a lot of feelings that I'd like to share with you. At the beginning of February, we drove 16 hours from Beijing to Wuhan with a mobile negative pressure lab in preparation for a Fangcang shelter hospital. I came across no more than 10 automobiles while making the nearly 750-mile journey. This was a big shock to me. What's even more shocking was that when I arrived at the Fangcang shelter hospital, which was then the biggest one in Wuhan, I walked straight into the lobby — where no partition had been set up yet — only to find that it was packed with rows of beds without a single patient. I stood there for 20 minutes. It reminded me of a faded photo taken during the 1918 flu pandemic. Many of you may have seen it. I was deeply touched standing there. What moved me most was that we as human beings need to unite against the sudden outbreak of infectious diseases, and we have a lot to do. Thank you.

Yan Jinghua:

I have no experience like Mr. Jin's in Wuhan. I'd like to talk about my experience as a vaccine developer. We, as vaccine developers, have in fact been stressed and nervous since the outbreak of the new coronavirus. As you know, there are many infectious diseases, including HIV, Ebola and Zika. But we seldom find vaccines for them. No vaccine is available for MERS, and the same is true for HIV and Zika. No vaccine candidates for these diseases are available on the market. Since the outbreak of COVID-19, none of the new coronavirus vaccine candidates have gone to the market. So what's the effect of a vaccine? Will it protect people and eventually become available on the market? That's the biggest concern of every vaccine developer. Even now, it is unknown if the vaccine for COVID-19 will succeed. Hence, we have a lot of work to do. We need verification during the process. We want it to succeed. But science is science, and the pathogen has its own characteristics. We look forward to our success. Thank you.

Wang Guiqiang:

I have been involved from the start in the control and prevention of the COVID-19 pandemic, and I genuinely feel its impact on humans. At the time of the SARS outbreak, Beijing's streets were also empty. I believe the success of China's anti-epidemic work lies in top-down unity and concerted efforts. We should cherish our achievements. During the outbreak, the Chinese people have played important roles and made tremendous sacrifices, including our medical workers who braved the risk of infection to provide relief in Wuhan; our scientific and technological workers who worked round the clock on diagnostic reagents, pathogen screening and vaccine development; as well as ordinary people who stayed at home to contribute to the fight against the disease. It's safe to say that everyone is working together. Therefore, I think it is not easy for China to achieve such results. I also hope that the whole world can come together as one to fight the pandemic. It is far from being enough for a single country to work hard because COVID-19 is a global challenge, and we are a global family. All countries should unite to fight the disease so we can achieve victory together. Thank you.

Xi Yanchun:

OK, it is precisely one hour into the press conference. Three experts and Dr. Liu Peipei have responded to questions from ten reporters, and the exchanges were sufficient. In the future, we will create more opportunities to communicate with you. I want to say that in the face of the sudden outbreak, Chinese scientists and researchers have worked hard. They are dedicated, rigorous, and realistic. They have played a vital role in the prevention and control of the epidemic. I want to take this opportunity to salute and thank all scientists and researchers who are working hard on the frontlines in the field of scientific research on the epidemic prevention and control.

I also want to stress that the virus knows no borders. Solidarity and cooperation are the most powerful weapon for the international community to overcome the pandemic. China is willing to continue to work with the international community and provide Chinese wisdom and strength. Thanks again to the experts, and thank you all. Today's briefing ends now. Thank you.

Translated and edited by Wu Jin, Zhu Bochen, Li Huiru, Zhang Liying, Wang Yanfang, Gong Yingchun, Zhou Jing, Fan Junmei, Huang Shan, Li Xiao, Lin Liyao, Zhang Rui, Zhang Junmian, He Shan, Liu Qiang, Wang Qian, Wang Wei, Duan Yaying, Yang Xi, Zhang Lulu, Guo Xiaohong, Wang Yiming, Mi Xingang, Jay Birbeck, Laura Zheng, David Ball, Scott Rainen. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Huang Libin, spokesperson of the Ministry of Industry and Information Technology (MIIT) and director general of MIIT's Performance Inspection and Coordination Bureau;

Wen Ku, MIIT spokesperson and director general of MIIT's Department of Information and Communications Technology Development.

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office

Date:

April 23, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are delighted to invite Mr. Huang Libin, spokesperson of the Ministry of Industry and Information Technology (MIIT) and director general of MIIT's Performance Inspection and Coordination Bureau; and Mr. Wen Ku, MIIT spokesperson and director general of MIIT's Department of Information and Communications Technology Development. They will introduce China's industrial and communications development in the first quarter of 2020, and also answer some of your questions.

First, I'll give the floor to Mr. Huang.

Huang Libin:

Ladies and gentlemen, friends from the media, good afternoon. First of all, thank you for your interest and support in the development of industry and communications. Next, I will brief you on the basic situation during the first quarter of 2020, and then my colleague Mr. Wen and I will answer some of your questions.

Since the beginning of this year, the unexpected outbreak of the COVID-19 epidemic has severely affected China's economic and social development. All sectors of society have been earnestly implementing the overall deployments made by the Central Committee of the Communist Party of China (CPC) and the State Council to coordinate the epidemic prevention and control work with economic and social development. Through hard work, China has achieved sustained improvements regarding the epidemic situation, and accelerated the restoration of economic and social orders. In the fields of industry and information technology, work and production have been resumed at an accelerated pace. The information and communications industrial sector has maintained overall stability.

First, the MIIT has ensured the supply of key materials in an orderly and vigorous manner. Since the start of the COVID-19 outbreak, the MIIT has been leading the State Council medical supplies group, and strengthening collaboration with other member units. Multiple measures have been taken to increase production and expand capacity concerning the efficient production and effective supply of key medical materials. During the peak period, the daily output of medical protective clothing exceeded 700,000 pieces, which was more than 50 times that during the early stage of the epidemic. The production of masks, medicine, infrared thermometers, ventilators and negative pressure ambulances has quickly increased, which has been indispensable in the domestic fight against the epidemic. Whilst working to meet domestic demand, the MIIT has also provided assistance within our capabilities to countries suffering from COVID-19. More efforts have been made to increase the supply of active pharmaceutical ingredients and anti-epidemic materials to the international market, so as to help prevent and control the pandemic globally.

Second, the MIIT has accelerated and further expanded work and production resumption. With a correct understanding of the relationship between epidemic control and production resumption, the MIIT has worked to promote the orderly resumption of work and production of the manufacturing industry through differentiated strategies and whole-industrial-chain coordination on the premise of strictly implementing COVID-19 control measures. Based on the concept of coordinated development between large and small companies, upper- and lower-stream enterprises, as well as domestic and foreign trade sectors, the MIIT has focused on key sectors, major industries and leading enterprises, highlighting the bottlenecks, difficulties and pains they have encountered in resuming work and production. More efforts have been made to conduct supervision and provide guidance accordingly. The MIIT has also introduced a series of policies and measures to further support medium, small, and micro enterprises (MSMEs). Through targeted coordination and assistance, the MIIT has been working to comprehensively help the manufacturing industry resume work and production. To date, industrial enterprises above designated size have basically resumed work and production. As of April 21, the average operating rate of enterprises and reinstatement rate of employees reached 99.1% and 95.1%, respectively, while the figures in Hubei province stood at 98.2% and 92.2%.

Third, economic performance has seen some positive changes. In order to cope with the economic impact of COVID-19, the CPC Central Committee and the State Council quickly proposed a series of counter-cyclical macro-policy adjustments, in order to ensure that economic fundamentals have remained steady. As these policies have gradually taken effect, major industrial indicators have improved significantly. In the first quarter of 2020, the added value of industrial enterprises above designated size dropped by 8.4% year-on-year. The figure in March dropped by 1.1%, the decrease of which narrowed by 12.4 percentage points compared with that of the previous two months. Investment in the manufacturing sector fell 25.2% year-on-year, the decrease of which narrowed by 6.3 percentage points compared with that of the previous two months. In March, the purchasing managers' index (PMI) for the manufacturing sector rose to 52% from 35.7% in February.

Fourth, the new economy and new momentum are growing against the trend. We strongly support 5G, artificial intelligence, Industrial Internet, Internet of Things, Internet of Vehicles, big data, blockchain, and other technological innovations and industrial applications; we accelerate the progress of 4G and 5G base stations construction. During the prevention and control of the epidemic, emerging demands, such as remote education, online medical service, and online video, have expanded rapidly, and internet applications have played an essential role in meeting people's everyday needs. In the first quarter, the added value from information transmission, software, and information technology services industries grew by 13.2% year-on-year; mobile internet traffic increased by another 39.3% on the basis of an increase of 129.1% in the same period last year. The national online retail sales of physical goods increased by 5.9%. In terms of industrial development, the output of integrated circuits, vending machines and ticketing machines, and electronic components increased by 16%, 35.3%, and 16.2%, respectively, in the first quarter. The value added from high-tech manufacturing in March increased by 8.9% year-on-year.

At present, China's domestic epidemic situation has been effectively controlled, and the orders of production and livelihood have been resumed in an accelerated way. However, the international epidemic is still expanding, the risk of a downturn of the world economy is increasing, unstable and uncertain factors have increased significantly, and the industrial economy is facing new difficulties and challenges. The situation is still not optimistic. From the perspective of long-term trends, we can see the impact and influence of the epidemic are staged and generally controllable and will not change the fundamentals of China's long-term economic growth. In the next step, in accordance with the overall arrangement of the CPC Central Committee and the State Council to coordinate epidemic prevention and control and economic and social development, our ministry will strengthen the "six stabilities," implement the "six guarantees", and comprehensively promote the manufacturing industry to resume work and production and reach its production goals, ensuring the stability of the supply chain and the industrial chain and promoting the stable and orderly development of the industrial economy in the normalized epidemic prevention and control.

I have finished my introduction. Now, Mr. Wen Ku and I will answer your questions.

Xi Yanchun:

Thank you, Mr. Huang Libin. Next, please ask your questions, and please identify your media outlet before asking questions.

CNR: 

I have two questions. First, we have noticed that the value added of industries above designated size in the first quarter fell by 8.4% year-on-year, and this was a significant decline. Will this trend continue? How do you view the trend of the industrial economy in the first half of this year and the whole year? Second, at a meeting yesterday, the Central Leading Group of COVID-19 Prevention and Control proposed a large-scale nucleic acid and antibody testing. Key populations will be tested, and large companies and organizations will be tested if they are willing. Can you tell us about the production and supply situations of our nucleic acid test kits? Thank you.

Huang Libin:

Thank you for your question. I will answer your first question first. I want to explore it from four aspects: the first is objective analysis, the second is a dialectical view, the third is to turn crises into opportunities, and the fourth is to maintain composure.

First of all, it is necessary to objectively analyze the impact and influence of the epidemic on economic operations, accurately assess its trends, and lay a good foundation for macro-control. Looking at the industrial economy in the first quarter, the added value of the nation's industries above designated size fell by 8.4% year-on-year, and for the first two months, it dropped by 13.5% year-on-year; the utilization rate of industrial capacity was only 67.3%, down 8.6 percentage points year-on-year; and the percentage of loss incurring China's enterprises reached 36.4%. The sudden outbreak of COVID-19 has had a huge impact on the operation of China's industrial economy. In accordance with the unified deployment of the CPC Central Committee and the State Council, on the premise of strict prevention and control of the epidemic, we orderly promote the coordinated resumption of work and production nationwide by region and by scale. The value added of industrial enterprises above designated size in March narrowed its decline to 1.1% year-on-year. PMI rebounded 16.3 percentage points from February. The flash report indicated that in the early and middle of April, the growth rate of electricity generation and consumption has changed from negative to positive, and the industrial economic operation is developing in a positive direction. The current global pandemic is spreading rapidly. Since mid-March, there are more and more canceled orders as well as cargo jettisons and rejections in foreign trade. As the order problems emerged, pressures on enterprise production and management have increased. Industrial economic operations still face significant challenges.

Second, by taking advantage of our industries, markets and institutions, we will respond precisely to the proactive changes in economic performance, securing stable expectations and boosting confidence. Generally, the impact of the epidemic, which is short-term and basically controllable, will not change the upward trend of our economy in the long run. However, its impact, resulting in a drop in supply and demand, and causing unsmooth internal and external business cycles, has affected our economy in the first quarter of this year. The driving force of consumption slackened as the national per capita consumption expenditure declined by 12.5% compared with last year after deducting price factors and the consumption of traditional bulk commodities, such as, vehicles and housing, dived. The launch of investments, with those in fixed assets sliding by 16.1% year on year, including a drop of 25.2% in the manufacturing industry, made it difficult to secure growth. Overseas demand dwindled greatly with export delivery value from industrial enterprises above designated size showing a year-on-year fall of 10.3%. The three demands, which slowed simultaneously, led the manufacturing industry to slump in the first three months. Nevertheless, with the successful containment of the epidemic and the resumption of economic and social normalcy in an orderly manner, proactive changes have emerged in the market. In March, investments into fixed assets and retail sales of consumer goods dropped by 8.8% and 15.8%, respectively, registering declines narrowed by 15.7 and 4.7 percentage points compared to the previous two months. Moreover, the decrease of added values of industrial enterprises above designated size narrowed by 12.4 percentage points. These changes mirror the resilience of our economy. With the implementation of a raft of policies and arrangements adopted by the CPC Central Committee in an effort to expand domestic demand, an increasing number of positive factors with consolidated market expectations and confidence will work together to improve the complete resumption of production, helping it fulfill the target output.

Third, while perceiving the opportunities and challenges brought forth by the pandemic in an objective and dialectical way, we should seize the opportunities of the crisis to develop and sustain the upward trend of the economy in the long run. With the global economy still being affected by the pandemic, the negative repercussions should be examined in terms of their extensiveness, sustainability and complexity in order to minimize the losses and impact that continue to affect China's economy. Therefore, we need to seize the window of opportunity by changing passive reactions into proactive ones, strengthening our areas of weakness, smoothing business cycles, and promoting industrial upgrading. Our holistic industrial chains should continue to play an increasingly important role in unclogging global supply chains, addressing underlying problems, undertaking productions of transferred overseas bills, and supplementing global supply scarcities. Considering the weaknesses exposed amid the pandemic, we should accelerate progress in core technologies from key industries, continue to upgrade fundamental industry capacities, promote industrial chains to pursue modernization and advancement, and ensure the safety of supply chains. With new forms of industry booming amid the pandemic, such as remote online diagnoses, office management, education and shopping, we will step up our efforts to support and direct them, awaiting full-fledged development, to become new backbones and driving forces that stimulate the economy to make further progress.

Fourth, with a resolution to defend the bottom line and maintain strategic focus, we should be capable of coping with the impact of the pandemic, preventing the short-term hit from developing into an unpredictable situation and maintaining stable fundamentals to confront challenges caused by external uncertainties. The Political Bureau of the CPC Central Committee convened on April 17, 2020, for a meeting on regular COVID-19 epidemic prevention and control measures and deployment of the current economic work. At the conference it was stressed that the country will "offset the impact of the pandemic with stronger macro policies" and "resolutely implement strategies to expand domestic demand." The Ministry of Industry and Information Technology (MIIT) will adhere to the deployment made by the CPC Central Committee and the State Council to strengthen our efforts to ensure stable performance in six key areas, namely, stability in employment, finance, foreign trade, foreign investment, domestic investment, and market expectations, and implement concrete measures to ensure employment for residents, basic wellbeing of the people, development of market entities, food and energy security, stable industrial and supply chains, and operation at the grassroots level. In doing so, we will continue with the complete resumption of work and production, fulfilling target output, and ensuring stable industrial and supply chains that allow the industrial economy to develop in an orderly manner. First, we will use all means to create an environment that is conducive to the resumption of work and production and the fulfillment of target output, and support economic recovery by ensuring smooth cycles of industrial and supply chains. Second, we will strengthen our areas of weakness, foster new driving forces to create high-quality supplies to lead and create new demands, and boost the high-quality development of the manufacturing industry. Third, we will ensure the implementation of policies and measures adopted consecutively to offset the pandemic's impact, precisely addressing the difficulties of micro, small and medium-sized enterprises to guarantee the stable fundamentals of economic development. Fourth, we will continue to deepen market-oriented reforms to improve the business environment, pursue high-level opening-up, lessen burdens on enterprises, and stimulate market vitality.

As for the second question, some 29 types of COVID-19 test kits produced by 25 companies have been approved to come to market. The daily production capacity is now 5 million. The Ministry of Industry and Information Technology (MIIT) is monitoring its production and supply every day. Based on current conditions, production is normal and inventory is sufficient. Thank you.

Phoenix TV:

During the pandemic, people have all stayed at home in quarantine and handled official business and classes online, which has contributed to the surge in network demand. What has the MIIT done to guarantee normal network operation under the high load? Thank you. 

Wen Ku:

Thank you for your question. For a long time, China's network infrastructure lagged far behind that of some developed countries. But during the pandemic, we've witnessed that China's network has undergone drastic changes. There are several signs. First, we have moved from the back of the pack to a leading position. By now, China has established the optical broadband network and 4G network with the largest scale in the world. Optical broadband users have accounted for more than 93% of broadband users, and the ratio of 4G users has reached 80%. Second, network use was formerly a luxury, but now it's a common commodity. As the quality and service level of telecommunication products continue to improve and charges decline, ordinary families now have access to the internet. During the pandemic, quarantine measures brought about the skyrocketing growth of network flow. The statistics showed that network flow during the pandemic increased by 50% compared with the end of last year. We did some statistical analysis in certain areas, and the growth rate in Wuhan during the same period reached 60-70%. Reports on some media outlets mentioned that some countries were not adapted to the high load and that skyrocketing household network use caused high-definition videos to degrade in quality. However, our online videos are all high-definition and can be broadcasted smoothly. I think the reporters here have experienced the quality. Yesterday, the China Academy of Information and Communications Technology released the "Suspending classes without stopping learning" network experience monitoring report. According to the report, the download speed of the national online education platform reached 97.7 Mbps, and that of the provincial platform reached 89.2 Mbps. Right now, 85% of online users have accesses to speeds of more than 100 Mbps on average. We are gradually promoting the piloting of 1,000 MB broadband, and there have been 1.61 million users. Rome was not built in one day. The information and communications industry has made long and painstaking efforts. Especially since the 18th CPC National Congress, we have accelerated our pace of catching up with advanced technology and made plans in advance, thus achieving our current accomplishments in dealing with the pandemic.

In summary, the achievement today is attributed to four aspects. First is the support of national policies. We've given full play to the guiding role of national development plans. We set goals based on policies, plans and standards, and we drove effective investment through policy guidance, creating a favorable policy environment. For example, we started the Broadband China Strategy in 2013 that for the first time listed broadband as a kind of new-era strategic public infrastructure along with traditional elements, including water, electricity and roads. Since 2015, we've increased network speed and lowered charges continuously, advanced the high-speed broadband construction represented by optical fibers and 4G, encouraged telecommunication corporations to cancel mobile phone domestic toll call roaming fees and internet usage roaming fees and lowered international toll call fees, offering cheap and effective network services for the general public.

At the same time, the 13th Five-Year Plan put forward the index of the internet availability rate. It was the first time for a national plan to utilize this as a clear index. Under this guidance, all the market entities gave full play to their roles and developed the industry rapidly. Right now, China has constructed high-quality integrated urban-rural network infrastructure, which has helped accelerate industrial development, technology innovation and service improvement. 

Secondly, we have made moderately advanced developments in network construction. Telecommunications technology follows its own law of evolution. We have experienced the changes of 2G, 3G to the present 5G, and from copper wire to optical fiber. We have also seen the development of more advanced network construction, and have established a principle of maintaining moderately advanced development in the process. Our motivation can be interpreted as: "we would rather build roads first, than vehicles first." Due to this, we shifted from copper wire to optical fiber in advance and issued national mandatory standards for the "Fiber to the Home" network. Developers of residential communities have been required to complete the construction of optical fiber connectivity. Full coverage of optical fiber-based broadband network has been realized in urban areas. The optical fiber network access ports accounted for 91%, all with access capability of 100 megabits per second and above. We have also launched a program to upgrade the speeds of both fixed and mobile networks to one gigabit per second, and published goals for the construction of cities with full optical fiber coverage and one gigabit per second access speed. Local governments were encouraged to participate proactively. Amid the epidemic, the development of the 5G network and the one gigabit per second network has enabled 5G network-based remote medical treatment and infrared temperature measurement, working online, and learning online. 

Thirdly, we have realized universal service of telecommunications, seeing the weakness of broadband network in remote areas. We have made great strides in telecommunications across the entire country. In the meantime, even though the operation of telecom industry observes market rules, remote rural areas are places where the market rules don't apply because the construction costs of telecom projects there can't be recovered as the profits are comparatively low. As of the end of 2014, a total of 50,000 administrative villages in China had no access to the broadband network, while 150,000 administrative villages had to endure network access capability of less than four megabits per second. The digital gap between urban and rural areas was obvious. Since then, we have launched six projects to pilot universal service of telecommunications. The general approach has been for the central government to channel funds, while local authorities provide coordination and support, and enterprises playing the major role of advancing development. The projects began at places where they were easier to carry out and then tapped into places with difficulties to make advancement. For example, expanding from administrative villages to human settlements with larger populations than others, and expanding from inland areas to border areas and islands. At present, 98% of administrative villages have been covered with optical fiber and 4G networks. Full coverage of 4G network has been realized across all inhabited islands and reefs in Sansha, the youngest city of our country, and 5G signals are now available at Yongxing Island and Yongshu Reef.

Fourthly, we have pushed forward with co-construction and sharing. As we encouraged telecom enterprises to compete with each other, we also pushed for China Telecom, China Mobile and China Unicom to cooperate in setting up a new company by integrating their communications towers. The result was China Tower. This move accelerated cost reduction and efficiency in the industry, and offered support for the fast and massive layout of the mobile network in the country. As of the end of 2019, the sharing rate of newly-built communications towers had increased to 80%, in comparison to 14% before the establishment of China Tower. This effectively made the competition in the industry more balanced, so now vast numbers of telecom users can fully enjoy the benefits of market competition. 

If not for the leapfrog development of network construction in recent years, people wouldn't have been able to live such rich lives during the epidemic; tens of millions of enterprises and government-affiliated institutions wouldn't have been able to handle businesses online with convenience; people wouldn't have been able to work at home via the internet without difficulty; and hundreds of millions of students wouldn't have been able to continue to attend classes online without encountering problems. 

Next, we will accelerate the construction of new infrastructure projects including the 5G network, a 1-gigabit per second optical fiber network and data centers, according to the arrangement of the central government. In particular, we will speed up the coverage of 5G in major cities and gradually extend the coverage to important counties and towns, with the aim of building an independent 5G network. Through these efforts, we will continue to improve the level of network construction in the country and provide a driving force to step up high-quality development. Thank you. 

Xi Yanchun: 

I would also like to echo Mr. Wen's words. Relying on the strong support of the highly stable 5G network, we successfully hosted press conferences in Wuhan via video links and hosted press conferences simultaneously held in Beijing and Wuhan, so we extend our gratitude to the Ministry of Industry and Information Technology. Please continue with questions. 

CNBC:

How did the new energy vehicles (NEVs) industry perform in the first quarter? And what are your expectations for the second quarter? Thank you!

Huang Libin:

Representing a significant pillar industry in China's national economy, the auto sector connects upstream and downstream industry chains and involves a wide range of sectors. The outbreak of COVID-19 has hit it severely. In the first quarter of this year, the output and sales volume stand at 3.474 million and 3.672 million, down 45.2% and 42.4% compared with a year earlier, respectively. Among them, sales of NEVs are hit heavier because the sector is still in the initial development stage. The output and sales volume of NEVs are 105,000 and 114,000, dropping 60.2% and 56.4% year-on-year respectively in the first quarter. Meanwhile, we should note that the output and sales volume dropped by 56.9% and 53.2% in March, respectively. The decline is narrowing compared with that in February, thanks to the effective pandemic prevention and control measures and the well-planned resumption of work and production.

Motivating consumer demand to spur auto sales is a fundamental policy in combating the impacts of the epidemic. In the early stage, the MIIT actively coordinated with relevant departments to develop policy proposals for stabilizing and expanding auto consumption, which were approved by the State Council executive meeting on March 31. These measures include: firstly, NEV purchase subsidy and vehicle purchase tax exemption policies will be extended for two years; secondly, the central government will replace subsidies with monetary rewards to support Beijing, Tianjin, Hebei and other key regions to phase out diesel trucks that only satisfy emission standards of China III and below; thirdly, the value-added tax on the sales of second-hand cars sold by second-hand car dealers is to be reduced to 0.5% of sales volume from May 1 this year to the end of 2023. Meanwhile, the MIIT encourages all localities to introduce measures to promote auto consumption market. Guangdong, Shandong, Jilin, Hainan, and Zhejiang provinces and Beijing, Shenzhen, Hangzhou, Ningbo, Nanchang, Guangzhou, Foshan, and other cities have officially issued specific measures. We believe more provinces and cities will follow suit. Auto output and sales volume will be restored and improved with the gradual release of consumption demand as well as the implementation of policies on expanding car spending.

In the next step, the MIIT will follow the arrangements made by the CPC Central Committee and the State Council in implementing related policies and measures and keeping a sustainable development of the automobile industry while ensuring powerful epidemic prevention and control, maintaining market order, and supporting work resumption. First, we will put into practice the requirements made at the State Council executive meeting to draft and issue specific policies and work to publicize notice and management of NEVs types and their subsidy and liquidation in coordination with the Ministry of Finance and other relevant ministries. Second, we will expedite the release of the New Energy Vehicle Industry Development Plan（2021-2035）and consolidate our efforts to achieve goals; meanwhile, we will work out a action plan on electrification of vehicles in public areas and give a boost to electrification level in buses, public sanitation patrol, post-delivery, taxies, commuting, light logistics distribution, and so on. Third, we will encourage the implementation of specific policies and measures to spur car sales in the related regions by offering electricity subsidies and convenient usage, as well as forming a complete vehicle set and expanding its application. Thank you!

National Business Daily:

We noticed that 5G has played an important role both in the epidemic prevention and control work and in the resumption of work and production. Can you explain the progress in promoting the 5G network?

Wen Ku:

Thank you for your question. We really value the development of 5G technology, and have been issuing 5G licenses since June 6, 2019. Three enterprises officially launched 5G networks on Oct. 31, 2019. Since then, 5G in China has grown rapidly. Generally speaking, although we have been impacted by the COVID-19 pandemic this year, the development of 5G has so far gone fairly smooth, and we have been making clear achievements for a while. As a matter of fact, 5G has now gradually permeated into people's everyday lives. 

First, we are "close to the network." Construction of the 5G network has been progressing rapidly. By the end of March, 198,000 5G base stations had been set-up across the country, and the number of 5G package users exceeded 50 million. We have observed from the network that currently over 20 million 5G devices have actually been connected to the 5G network. 

Second, we are "close to the products." The development of devices has entered a boom period, which is very good news for the people. By April 22, a total of 96 models of 5G cellphones have received the network permits. Compared to the number at the end of December last year, which was 39 models, this is a significant development. The price of 5G cellphones has also dropped quickly. Some 5G cellphones currently available on the market are priced at under 2,000 yuan. 5G business-use professional modules, telecommunication modules in cellphones, and modules on devices installed in industrial productions have also been introduced. They support various apps used on 5G 8K televisions, 5K industrial production lines, intelligent transportation systems and more. 

Third, we are "close to apps." Multiple applications have started to be launched. The apps installed in consumer spending areas, such as ultra high definition (UHD) videos, cloud games, AR and VR, are being implemented much more widely. 5G technologies have also been embedding deeper in key areas like car-networking, industrial internet and medical health areas on a trial basis. In particular, since the COVID-19 outbreak, the implantation of apps in 5G plus remote medical cares, intelligent medical treatment robots, sterilizing drones, online education, and home working has been accelerated. They have brought more visual 5G experiences for a vast number of customers.

At present, faced with the huge impact of the COVID-19 pandemic, 5G technologies, which have served as a key engine for the digital economy, are providing significant new infrastructures and assuring everything can be connected. They have played an important role in the aspects of stabilizing investment, stimulating consumer spending and helping in updating. Next, we will continue to speed up the construction and promotion of the 5G network, optimize the environment for innovation, and inject new energy into economic growth. We will conduct our work in the following aspects:

First, we will strengthen the basis and build a high quality network. To promote the development of the 5G network, the MIIT implemented the Notice for Accelerating 5G Network Development. According to this document, while assuring basic telecommunication enterprises market entities play their part and are secured by local governmental policies, we will push telecommunication enterprises to make use of these local policies. Many local governments have established special policies to speed up the development of 5G-related economies. We hope that enterprises will prioritize their construction in these areas with maximum support. In the meantime, these enterprises should launch the outbreak prevention and control work smoothly as a basis, and their resumption of work and production must be well conducted. During construction of the 5G network, a series of procedures will be carried out, such as designing, investigating and bidding. This requires enterprises to further optimize their working procedures, push working schedules and pool resources in order to accelerate the construction of the 5G network. We expect to accomplish this year's goals and hope that 500,000 new 5G base stations will be constructed. We also encourage both upstream and downstream businesses in the industrial chain to enhance cooperation, perfect their R&D and testing of 5G, and ensure the quality of 5G network constructions. We will also continue to perfect the equipment of independent networking modules and speed up the transition from dependent networking to independent networking.

Second, we will focus on innovation to unleash the potential of consumption. Manufacturers are encouraged to strengthen research, development and innovation, which will allow them to provide a variety of cost-effective 5G-supported smartphones to a huge number of costumers. Meanwhile, the telecommunication operators will take certain measures, such as gradually reducing internet charges and allowing purchases of handouts with credits, to boost consumption of 5G-based technologies. Additionally, we will bolster the integrated research and development of 5G modules and industrial terminals to promote the innovation and large-scale applications of ambient intelligence supported by 5G. We will stimulate the rapid growth of information consumption, seizing emerging opportunities with 5G applications such as online education, online medical care, and remote work, and enhancing the development of virtual and augmented realities plus 5G, livestreaming contests, games and entertainment, and virtual shopping. 

Third, we will address underlying problems, especially those of a general scope. 5G technologies are being applied not only to households but also to businesses and industries. For the use of 5G technologies in various industries, we will launch pilot programs to create virtual private networks through engineering-based approaches. Simultaneously, 5G network structure and its technological solutions will be made available and adaptable to the various demands of users from vertical industries, responding particularly to enterprises' concerns over localized data and independent network access control. The expansion and exploration of 5G technologies, from being applied to pure individual clients to covering both personal and corporate customers, will accelerate, and a consensus will be reached on standards, construction and business models concerning the application of 5G technologies across industries. Therefore, this development can be advanced from a nascent stage and put into real use. Thank you.

CCTV:

At the conference of the Standing Committee of the Political Bureau of the CPC Central Committee held on April 8, General Secretary Xi Jinping pointed out that we should take every possible opportunity to create conditions that support the resumption of work and production and seize every opportunity to enable smooth industrial, market, economic and social cycles. Then, what kind of work has the MIIT done to help resume the work and production of the holistic industrial chain?

Huang Libin:

General Secretary Xi Jinping has reiterated that industries should be coordinated in resuming work and production. The State Council's executive meetings on March 10 and 24 also focused on the resumption of work and production. Following the decisions and deployments made by the CPC Central Committee and the State Council, we promoted the industries' resumption of work and production under principles that included big enterprises taking a leading role in helping smaller ones, the coordination between upstream and downstream industries, and the cooperation between domestic and foreign trade firms. Our efforts can be elaborated in four aspects, as follows:

First, leadership is strengthened to cover all the horizontal and vertical industrial layouts. Led by Minister Miao Wei, a steering group consisting of 18 department directors has been established to focus on the resumption. Meanwhile, we have cooperated with 15 other ministries and commissions, including the National Development and Reform Commission, as a designated team to foster cross-departmental and cross-regional coordination. We have also sent teams to seven provinces, including Guangdong, Jiangsu, Shandong, Zhejiang, Fujian, Sichuan and Hunan to ensure that the resumption proceeds in an orderly fashion. Officials at provincial, autonomous regional and municipal levels have been sent to enterprises to help with their operation and assist employees to return to position, addressing the problems related to the labor force, logistics, funds, raw materials and parts supply.

Second, the leading enterprises take a leading role in the resumption, and the smaller ones follow suit. At the very beginning, we made a list of 51 leading conglomerates and more than 7,300 core supporting enterprises to address the blockages, difficulties and underlying problems encountered during the resumption of work and production. Local governments, departments and industrial guilds were also called on to provide targeted services. On such a basis, we then sorted out 41 other leading enterprises and 379 more core supporting partners and helped them to coordinate precisely with the resumption. The production of those enterprises has now been much restored when compared to the same period last year. The 92 leading enterprises combined have led more than 400,000 small and medium-sized companies from both upstream and downstream industries in making solid achievements during the resumption of work and production.

Third, we have made great efforts to aid, help and benefit enterprises by offering targeted services to small and medium-sized enterprises (SMEs) for their return to work and production. SMEs, with a large number of establishments covering a wide range of sectors, are an indispensable part of the manufacturing industry chain. The Ministry has given full play to the coordinating mechanism of the Leading Group Office for Promoting the Development of Small and Medium-sized Enterprises under the State Council, and has promoted the promulgation and implementation of a series of fiscal, tax and financial policies to support the production resumption of SMEs and to help them withstand difficulties. Through an online platform, online training and other ways, we have provided support for more than 200,000 SMEs and allowed them to enjoy these preferential policies. We have organized local governments to provide targeted docking services for SMEs in resuming their work and production through the opening of platforms that allow enterprises to connect supply and demand, as well as the launching of cloud services and resource matching meetings. We have also stepped up efforts to clean up the arrears that government departments and large state-owned enterprises owe to private enterprises and SMEs in order to prevent new arrears caused by the pandemic. In the first three months of this year, we have cleared up 28.8 billion yuan in arrears to private enterprises and SMEs.

Fourth, we have implemented policies and measures to help the manufacturing sector resume production, increase efficiency and achieve full capacity. In order to promote automobile consumption, an executive meeting of the State Council recently announced a two-year extension of the new energy vehicle purchase subsidy and purchase tax exemption policies, which were set to expire at the end of this year. The Ministry is working with relevant departments on detailed implementation plans. In light of the problem of poor offline sales in textiles and clothing, light industrial products, toys, furniture and other industries, we, along with several industry associations and e-commerce platforms, have held special online sales activities to promote consumption. To boost new drivers of the new economy, we have accelerated the construction of infrastructure, such as 5G networks, the Internet of Things, big data, artificial intelligence and smart cities, so as to promote the coordinated development of related industries in the upstream and downstream sectors. Thank you. 

Guangming Daily: 

Media reports say that the COVID-19 pandemic will accelerate the migration of China's manufacturing industry chain. How does the Ministry of Industry and Information Technology view this issue? A meeting of the Political Bureau of the CPC Central Committee mentioned the "six safeguards" (safeguarding jobs, livelihood, market entities, food and energy security, the stability of industrial and supply chains, and the smooth running of communities) for the first time. How do you plan to ensure the stability of industrial and supply chains? Thank you. 

Huang Libin: 

The outbreak of COVID-19, alongside the Lunar New Year holiday factor, has had serious impacts on people's lives and jobs, as well as on various sectors and industries. The manufacturing industry chain has been severely affected, the circulation of people and logistics are not smooth, and the upstream and downstream enterprises in the industrial chains are out of sync in production resumption. Apart from these prominent problems, factors such as stagnation in production of some important industrial products and obstruction of exports have also affected the international supply chain to some extent. In China, we see the continuous improvement of the pandemic prevention and control situation and the accelerated recovery of production and daily order. But the overseas pandemic situation has been accelerating and spreading. The manufacturing industries in countries and regions with serious pandemic conditions, such as the United States and European countries, have been shut down on large scales and production has been suspended, leading to serious breakups of the global supply chain. These situations force people to think about the safety of the industrial chain, and the globalization of labor division may face a new pattern adjustment.

At present, the global industrial chain layout and supply chain structure, formed as a result of the free flow of production factors in the most efficient way, in addition to the optimal allocation of resources over the decades, are rather stable and interdependent. For a long time, multinational companies have paid more attention to efficiency and costs when allocating production factors globally. Future adjustment is the choice of enterprises — not the will of the government. China is an indispensable and important pillar of the global industrial chain, and being "made in China" has its unique advantages. The super large market size is a decisive factor in ensuring the global industrial chain stays in China. The complete industrial system and well-developed infrastructure give us great confidence to further integrate into the global industrial chain. The pandemic could lead to a more diversified and resilient global industrial or supply chain, and we will retain foreign businesses in China with greater efficiency, higher-quality services and a better business environment.

China's economy is still growing on strong fundamentals and with unchanged overall competitiveness. Multinational companies still have confidence in the Chinese market, and their investment strategies remain unchanged. According to a survey released by the American Chamber of Commerce in China (AmCham) on March 25, 40% of AmCham members will maintain previously planned levels of investment, up by 17 percentage points from February. Tesla's gigafactory in Shanghai was built and started mass production in just under a year. In March, Tesla sold more than 10,000 vehicles in China, hitting a record high. An integrated global supply chain has proved to be more resilient and flexible than a fragmented one. Integration is more conducive to maintaining international security and stability, as well as ensuring and improving well-being for people around the world.

A meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee held on April 17 emphasized efforts to maintain stability and the competitiveness of China's industrial and supply chains, as well as to promote coordinated work and the resumption of production across the industrial chain. In accordance with the decisions and plans made by the CPC Central Committee and the State Council, the MIIT will focus on the following priorities to ensure stability in industrial and supply chains.

First, we will keep connected with global industrial and supply chains, and contribute to international cooperation in fighting COVID-19. We will increase the supply of active pharmaceutical ingredients, life necessities and medical equipment, and ensure the production and exportation of key products and firms with major influence in the global industrial chain in an effort to keep the global supply chain stable.

Second, we will smooth domestic industrial and supply chains to stimulate the vitality of the domestic market. We will advance Internet Plus initiatives to boost traditional consumption and vigorously support the development of new forms and models. We will accelerate the construction of new infrastructure, speeding up the commencement of key projects in the industry and communications sectors and strictly ensuring the implementation of key foreign-funded projects.

Third, we will smooth out blocks in industrial and supply chains and promote the resumption of work and production in key sectors and areas. We will strengthen coordinated efforts and improve follow-up services. We will leverage the role of leading enterprises in driving the development of businesses in the upstream and downstream of industrial and supply chains. We will help large, medium-sized and small enterprises achieve integrated development, and we will work to stabilize the fundamentals of industrial operations.

Fourth, we will enhance capacity-building for the security of industrial and supply chains. We will make efforts to establish mechanisms operating across regions, departments and sectors in the aspects of information sharing, infrastructure connection, unimpeded logistics, financial integration, people-to-people ties and coordinated administration. We will also strengthen the risk-warning management of core sectors and key regions. Thank you.

Xi Yanchun:

I noticed that some reporters didn't get a chance to raise questions. For any inquiries, please feel free to contact the information office of the MIIT. Thanks again to the speakers and everyone else. Today's press conference is hereby concluded.

Translated and edited by Zhu Bochen, Li Xiao, Zhang Rui, Guo Xiaohong, Wu Jin, Wang Yanfang, Mi Xingang, Fan Junmei, Liu Sitong, Zhou Jing, Zhang Tingting, Li Huiru, Yan Xiaoqing, Wang Zhiyong, Zhang Junmian, Zhang Liying, Wang Wei, Jay Birbeck, Laura Zheng, David Ball, Scott Rainen. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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Read in Chinese 

Speakers:

Shen Changyu, director of the National Intellectual Property Administration

He Zhimin, vice director of the National Intellectual Property Administration

Yu Cike, director of the Copyright Administration under the Publicity Department of the CPC Central Committee

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office

Date:

April 23, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media, good morning. Welcome to this press conference. This week marks China's 2020 National Intellectual Property Publicity Week. Today, we are delighted to invite Mr. Shen Changyu, director of the National Intellectual Property Administration (NIPA) to brief you on the development of China's intellectual property rights (IPR) in 2019. He will also answer some of your questions.

Also present at the press conference today are Mr. He Zhimin, vice director of the NIPA, and Mr. Yu Cike, director of the Copyright Administration under the Publicity Department of the Communist Party of China (CPC) Central Committee.

Now, Mr. Shen will give us a brief introduction.

Shen Changyu:

Thank you, Ms. Xi. Friends from the media, good morning. Let me begin by thanking all of you for your concern and support of IPR-related work over the years. I would now like to brief you on China's IPR development in 2019.

IPR played a more prominent role in China's system for governance in 2019. General Secretary Xi Jinping gave a series of important new instructions on IPR-related work on several occasions, including at the 2nd Belt and Road Forum for International Cooperation and the 2nd China International Import Expo. He presided over the ninth meeting of the CPC Central Committee for deepening overall reform, which reviewed and approved "The Guideline on Strengthening Intellectual Property Rights Protection." The document was jointly issued by the General Offices of the CPC Central Committee and the State Council.

The fourth plenary session of the 19th CPC Central Committee made important new plans for appropriately strengthening the power of the CPC Central Committee in IPR protection, setting up a punitive damage compensation system for IP infringement and enhancing the protection of enterprise trade secrets. 

Premier Li Keqiang presided over a State Council executive meeting, making arrangements to improve IPR protection, promote intellectual property pledge financing and boost innovation and development of the real economy.

IPR is playing a more important role in modernizing China's system and capacity for governance. Fresh progress has been made in IPR-related work on various fronts.

First, efforts have been stepped up to transform China into a country that is strong on IPR. In accordance with the plans made by the CPC Central Committee and the State Council, we comprehensively started formulating an outline for building China into a country that is strong on IPR for the 2021 to 2035 period, and we have finished the first draft. We developed and implemented last year's plan on advancing national IPR strategy, and we acted on the plan for IPR protection and utilization in the 13th Five-year Plan Period (2016-2020). 

We continue to improve the quality and efficiency of patent and trademark examination. The period for examination of high-value patents has been reduced to 17.3 months, and the average time for trademark registration is 4.5 months. These numbers exceed the annual target set by the State Council. The cuts and exemptions in fees related to patents and trademarks amounted to 7.93 billion yuan. 

We accelerated the building of provinces, cities and enterprises that are strong on IPR. We selected another 18 demonstration cities, 88 pilot demonstration counties, 35 pilot demonstration parks and 2,239 demonstration enterprises. We have made steady progress in national copyright demonstration work and selected another two demonstration cities, eight demonstration parks (bases) and 69 demonstration work units.

Second, laws and regulations for IPR protection have been improved. An amendment to the Trademark Law was completed that increased the amount of statutory compensation for malicious infringements from less than three times the damage to less than five times. The compensation upper limit was raised from 3 million yuan to 5 million yuan. Revisions to the Law Against Unfair Competition was also completed, further strengthening the protection of trade secrets. 

Continued efforts were made to promote amendments to patent law and guidelines were provided for implementation of the Copyright Law as well as the Protection of New Varieties of Plants. The Regulation on the Management of Human Genetic Resources was also published. Multiple regulations and rules were formulated or revised regarding patent commissioning, patent agent examination, trademark application and registration and management of China offices of authentication institutions for foreign copyrights. The Guidelines on Anti-Monopoly Law Enforcement in the Field of Intellectual Property Rights was introduced, and research on the fundamental legal system for IPR protection was deepened.

Third, the protection of intellectual property rights (IPR) has been comprehensively strengthened. The General Office of the CPC Central Committee and the General Office of the State Council issued "Opinions on Strengthening the Protection of Intellectual Property Rights" and have put forth a series of notable policies and measures. The 2020-2021 Implementation Plan has been issued recently. The number of IPR protection centers and IPR rapid response centers has reached 46. We have launched targeted campaigns, such as "Iron Fist," "Sword Net," "Net Sword" and "Dragon Fly." A total of 32,000 trademark infringement cases and 7,000 cases of trademark counterfeiting were handled worth a total of 510 million yuan. 39,000 administrative cases for patent infringement disputes were handled. 10,000 cases of unfair competition were handled, with a value of 3.16 billion yuan. Public security authorities in China registered 24,000 criminal cases of IPR infringement as well as production and sale of counterfeit goods, with 16,000 cases solved and 29,000 criminal suspects arrested, involving 8.67 billion yuan. China's customs seized 51,000 batches of infringing goods. The people's courts in China registered 480,000 new IPR cases and closed 475,000 cases. The people's procuratorates in China approved the arrest of 7,430 people in 4,346 criminal cases of IPR infringement and charged 11,000 people involved in 5,433 cases. The level of social satisfaction with IPR protection in China increased to 78.98 points.

Fourth, the quality of intellectual property rights has improved steadily. There were 1.862 million invention patents from the Chinese mainland, 13.3 patents for every 10,000 people, achieving the goal set in the nation's 13th Five-Year Plan ahead of schedule. China's total number of effective registered trademarks reached 25.219 million, with every 4.9 market entities owning one registered trademark. A total of 2,385 products of geographical indication were approved, 5,324 geographical indication trademarks registered, and 8,484 enterprises with special marks of geographical indication products approved. Additionally, 8,319 layout designs of integrated circuit were registered. 2,288 new species of agricultural plants and 439 new species of forest plants were approved. Copyrights for 2.702 million pieces of works and 1.484 million pieces of computer software were registered. According to the World Intellectual Property Organization, China ranked 14th in the 2019 Global Innovation Index, moving up three spots from 2018 and ranking first among middle-income economies. In 2019, China filed 59,000 international patent applications via the Patent Cooperation Treaty (PCT), becoming the world's top patent filer. In 2019, China also filed 6,339 international trademark registration applications via the Madrid System, ranking third globally. 

Fifth, the effectiveness of IPR application has improved remarkably. A set of statistical categories for IPR (patent)-intensive industries has been released. According to the statistics, the added value of China's patent-intensive industries topped 10.7 trillion yuan in 2018, accounting for 11.6% of the country's GDP, becoming a key pillar of high-quality economic development. The added value of China's copyright industry reached 6.6 trillion yuan in 2018, accounting for 7.37% of the country's GDP. In 2019, with the implementation of the trademark and brand strategy, the shift from "Made in China" to "Brand in China" was accelerated and the application of geographical indications boosted targeted poverty alleviation and rural vitalization. The patent and trademark pledge financing reached 151.5 billion yuan, an increase of 23.8% from 2018. Copyrights worth 7.3 billion yuan were used as collaterals for financing, which helped nearly 10,000 enterprises solve financing problems. Technical contracts concerning IPR with a total value of 928.69 billion yuan were signed, up 137.7% year on year. The total trade of China's intellectual property royalties in 2019 reached $41 billion. The export volume of intellectual property royalties, in particular, stood at $6.6billion, up 18.8% year on year. 

Sixth, international cooperation on IPR protection has been strengthened. A number of IPR cooperation documents have been signed, such as the joint statement on the conclusion of the negotiations of an agreement between China and the European Union on cooperation on, and protection of, geographical indications and the agreement between China and France on cooperation on geographical indications. We have made solid progress in IPR cooperation under the Belt and Road Initiative, with eight cooperation programs yielding outstanding results. We have strengthened cooperation with the World Intellectual Property Organization and the World Trade Organization and actively participated in the global governance of IPR. We have made preparations for China's entry into the Hague Agreement Concerning the International Deposit of Industrial Designs. The Beijing Treaty on Audiovisual Performances will enter into force on April 28, 2020, as 31 eligible parties have deposited their instruments of ratification or accession. The Treaty is the first international agreement on IPR named after a Chinese city.

These are China's IPR developments in 2019. We would like to answer your questions. Thanks.

Xi Yanchun:

Thank you for Mr. Shen's introduction. Now it is time for questions. Please indicate the media organization you work for before raising a question.

CCTV:

We learned from General Secretary Xi Jinping's speech at the Belt and Road Forum for International Cooperation held last year that China would make more efforts to step up international cooperation in IP protection. What progress has the NIPA made in these aspects, especially in the Belt and Road cooperation on IP? Thank you.

Shen Changyu:

Thank you for your question. To implement the important instruction made by General Secretary Xi Jinping, the NIPA is actively advancing related work around the following aspects:

First, we are working to enhance multilateral cooperation and deepen ties with the World Intellectual Property Organization (WIPO) to take an active part in the global governance of IPR. We will steadily advance China's preparations for joining the Hague Agreement Concerning the International Deposit of Industrial Designs and work to bring into force the Beijing Treaty on Audiovisual Performances (BTAP), the first international treaty on IPR named after a Chinese city. Second, we will boost cooperation with our neighbors. We will actively participate in negotiations on the Regional Comprehensive Economic Partnership (RCEP) and the China-Japan-South Korea Free Trade Agreement, and we will promote mutual recognition and protection of geographical indication between China and Thailand. Third, we will strengthen small-scale multilateral cooperation. We will play an active role in IPR cooperation among China, the United States, Europe, Japan and South Korea, as well as among BRICS countries and among China, Mongolia and Russia. We will hold the Meeting of China-ASEAN Heads of Intellectual Property Offices. Fourth, we will enhance bilateral cooperation to complete the negotiations on the agreement of China-Europe geographical indications protection, concerning a mutual recognition and protection of 275 total products of geographical indications from each side, respectively. We will promote bilateral cooperation with the European Patent Office and the European Union Intellectual Property Office, as well as the IP authorities of Britain, France and Germany. Generally speaking, we will accelerate building a new pattern of linked and coordinated international cooperation on IPR.

In terms of international IP cooperation, the cooperation among the Belt and Road countries is a top priority. We have worked with relevant parties to map out eight practical cooperation projects covering IP protection, review services, development of foundational capabilities and the improvement of public awareness of IPR. These projects have now come through with significant achievements. The number of patent and trademark applications between the Belt and Road cooperation partners and China has maintained rapid growth. Last year, the number of patent applications from those countries increased by 9.7% in China, while that of patent applications China filed in those countries went up 8.5%. The deepening cooperation has been a forceful driver of the Belt and Road's development.

Next, the NIPA will make greater efforts to step up international cooperation on IP protection to promote common development. Thank you.

Beijing Daily: 

The BTAP is an international treaty on IP named after a Chinese city. There were reports that the treaty would take effect by April 28. Could you share with us some details about the treaty? What has the National Copyright Administration of China (NCAC) done? Thank you.

Yu Cike:

Thanks for your question. The BTAP is an international copyright treaty administered by the WIPO. It aims to protect the spiritual and economic rights to their recorded or unrecorded performances that performers enjoy.

From June 20-26, 2012, the WIPO held a diplomatic conference on the protection of audiovisual performances, which ended with them entering into the BTAP. On Jan. 28, 2020, Indonesia submitted its instrument of ratification to the WIPO, becoming the 30th key member of the treaty. According to the BTAP's operative clauses, the treaty will take effect three months after the date on which 30 eligible parties have deposited its instrument of ratification or accession. Hence, the BTAP is scheduled to take effect going forward from April 28, 2020. 

The conclusion and entry into force of the Beijing Treaty on Audiovisual Performances will comprehensively improve the level of protection offered to performers by the international community, and promote the development of the audiovisual industry. The positive effects of the Beijing Treaty are as follows: First, it will fully protect the rights of audiovisual performers, further improve their industrial status and stimulate their enthusiasm for creativity; second, it will enrich spiritual and cultural products, and promote the healthy development of the audiovisual industry; third, it is conducive to the protection of traditional culture, and folk literature and art, and will promote the development of cultural diversity.

Mr. Francis Gurry, director general of the WIPO, explained that the Beijing Treaty strengthens the rights of audiovisual performers, which can be translated into income growth, and will promote the economic sustainability of the audiovisual industry that brings pleasure to all of us.

The Beijing Treaty is the first international intellectual property treaty concluded in China and named after a Chinese city since the founding of New China. The National Copyright Administration has carried out a series of fruitful tasks in promoting the conclusion and entry into force of the Beijing Treaty.

In 2012, the National Copyright Administration and the Beijing Municipal People's Government jointly organized the "Diplomatic Conference on the Protection of Audiovisual Performances," with the approval of the CPC Central Committee. During the meeting, the Chinese government pushed for the successful conclusion of the Beijing Treaty through mediation, negotiation and coordination, which was highly appreciated by Mr. Francis Gurry. He believes that this diplomatic conference embodies the "Beijing Spirit" featuring understanding, support, inclusiveness and cooperation, which will continue to promote international intellectual property cooperation.

On April 24, 2014, the eighth meeting of the Standing Committee of the 12th National People's Congress approved the Beijing Treaty. On July 10 of the same year, Mr. Cai Fuchao, then-director of the National Copyright Administration, submitted a government statement on ratification of the Beijing Treaty to the WIPO on behalf of the Chinese government.

After the conclusion of the Beijing Treaty, the National Copyright Administration actively promoted its early entry into force. The National Copyright Administration and the WIPO have hosted multiple international copyright forums to discuss the protection of performers' rights and reach a consensus. The National Copyright Administration has also actively engaged in bilateral cooperation on copyright, and carried out exchanges into strengthening the protection of performers' rights. In addition, the National Copyright Administration, alongside WIPO officials, met with ambassadors of relevant countries in China to accelerate the process of the treaty's ratification; and worked with agencies of the Beijing municipal government to hold commemorative activities or seminars on the conclusion of the treaty and the copyright protection of audiovisual performances.

The Beijing Treaty is a milestone in China's copyright cause and a new starting point for benefitting global performers. China will continue to cooperate with the WIPO, actively promote more countries to ratify and join the Beijing Treaty, and solidly implement the protection of performers' rights. China will also take the treaty's entry into force as an opportunity to continuously improve the copyright protection system, further enhance the protection of performers, and promote the high-quality development of the copyright industry, including audiovisual performances. Thank you.

Economic Daily:

We have noticed that China recently published data on the added-value of patent-intensive industries. What are the main areas covered by these industries? As for the development of related industries, in what areas is China lagging behind developed economies such as Europe and the U.S.? Thank you.

Shen Changyu:

Thank you for your question and interest. As I just mentioned, not long ago, the National Intellectual Property Administration and the National Bureau of Statistics jointly released data on the added-value of national patent-intensive industries. The data showed that the added-value of China's patent-intensive industries was 10.7 trillion yuan in 2018, accounting for 11.6% of GDP. These industries contributed 15.7% to GDP growth, thereby bolstering high-quality economic development.

The term "patent-intensive industries" refers to a collection of sectors in which the intensity and scale of invention patents meet prescribed standards, rely a lot on intellectual property rights in market competition, and pursue innovation development. Examples include information and communications, new equipment manufacturing, new materials, medicine and medical care and environmental protection sectors, which all reflect the new progress in improving economic structure and transforming growth drivers, as well as the new outcomes in innovation-driven development.

In recent years, developed economies, such as Europe and the U.S., have also paid increasingly more attention to patent-intensive industries and have carried out regular statistical research and published the data. For example, according to the latest report released by the EU in 2019, the share of its patent-intensive industries in GDP already reached 16.1%, 4.5 percentage points higher than China's 11.6%.

However, China is expected to see its patent-intensive industries maintaining stable growth while playing a greater role in transforming the pattern of economic growth and developing the real economy in the future. Thank you.

CRI:

In recent years, reforms to streamline administration, delegate powers, improve regulation, and upgrade services continued in the field of intellectual property rights, and reforms to facilitate trademark registration also intensified, delivering continuous benefits. How effective are the trademark registration facilitation reforms in promoting innovation and entrepreneurship? What are the future steps? Thank you.

Shen Changyu:

Let's invite Mr. He to answer your question.

He Zhimin:

Thanks for your questions. In recent years, the National Intellectual Property Administration has been prioritizing the reforms to streamline administration, delegate powers, improve regulation and upgrade services, and it has also been facilitating intellectual property services. We released implementation opinions on deepening the reforms in the field of intellectual property and creating a good business environment, with 78 specific measures proposed in 14 aspects to realize more convenient applications, more efficient review, fuller use, stronger protection and better service. At present, we are actively building an intellectual property big data center and public service platform to offer multiple services at one stop. As for the reforms to facilitate trademark registration, we have done a lot for a better and quicker trademark review, and we have made great progress.

First, we shortened the average review period of trademark registration to four and a half months, a level that is close to the world's fastest under the same system. The review period of trademark change, transfer, and international registration under the Madrid System has also been reduced. The review period for dismissed cases is now reduced from 12 months to seven months, and for complex cases, it has been reduced to 10 months.

Second, we are facilitating trademark services. Applicants can handle major trademark-related business that includes registration, change, transfer and international registration under the Madrid System both online and offline. Last year, the online application rate reached 94.5%; among the 212 trademark service windows nationwide, 103 can handle trademark pledge financing. We helped companies raise about 41.1 billion yuan last year, effectively addressing their financing difficulties.

Third, we made trademark review procedures more open and transparent, published trademark review and adjudication documents, conducted review hearings orally and on circuit and disclosed information on all of the more than 40 million trademarks. We have actively accepted societal supervision while offering better services.

Fourth, we carried out vigorous actions in the Trademark Review Quality Improvement Year, and strictly combated trademark hoarding and malicious registration. From April 2019 to the end of the year, 39,000 applications for abnormal trademarks were rejected during the review stage alone.

In addition, we also improved the quality and efficiency of patent review. By the end of March this year, the average review period for invention patents had been cut to 20.5 months, and the review period for high-value patents had been reduced to 16.6 months.

This year, we will further promote reforms to facilitate trademark registration and streamline procedures by improving online trademark services. At the same time, we will further improve review and adjudication standards, continue to curb the hoarding and malicious registration of trademarks that are not for use purposes, regulate trademark agency and promote high-quality trademark review and adjudication. Thank you.

Macau Monthly:

The World Intellectual Property Organization (WIPO) held another video conference on April 20 to discuss interim policies and remedies on intellectual property rights (IPR) for the international community during the outbreak of the pandemic. As the director of China National Intellectual Property Administration (CNIPA), Mr. Shen attended and spoke at the meeting. Could you give us a brief introduction about how China plans to handle problems related to the delay and extension of application time limits for the Patent Cooperation Treaty (PCT)? Thank you.

Shen Changyu:

Thanks for this good question. As COVID-19 has spread across the world, it has brought challenges to the operation of the WIPO, intellectual property authorities across the world, and the WIPO's PCT and other global IPR service systems. On April 6 and April 20, WIPO Director General Francis Gurry called together the heads of intellectual property authorities in 16 countries and regions to discuss how to deal with the impact of the pandemic. On April 9, WIPO issued the Interpretative statement and Recommended Patent Cooperation Treaty (PCT) Practice Changes in light of the COVID-19 Pandemic. The statement wrote that "the current global pandemic should be considered to be a 'natural calamity'" and it "will treat favorably any PCT Rule 82quater request made citing COVID-19 related issues and not require evidence to be provided that the virus affected the locality in which the interested party resides."

As you just mentioned, I attended the two conferences on behalf of the CNIPA, and I expressed China's support for the WIPO to play an active coordinating role during the pandemic so as to unite intellectual property authorities in the world to fight the crisis together and effectively protect the rights and interests of all applicants and rights holders.

Next, the CNIPA will follow the WIPO's interpretative statement and recommended practice changes to properly cope with problems related to the delay and extension of application time limits of the PCT. In the meantime, we will continue to support the WIPO to play an active role by strengthening information communication with intellectual property authorities in various countries and regions so as to jointly respond to the challenges COVID-19 poses to the international IPR system. Thank you.

China Daily:

We all know that the Outline of National Intellectual Property Strategy, which was released in 2008, will expire this year. Have the major goals set for 2020 been realized as scheduled? You just mentioned that you are working hard to formulate the Outline of National Intellectual Property Strategy for 2035. Is there any progress in this work? And what are your next steps? Thank you.

Shen Changyu:

Thanks for your questions. Since the Outline of the National Intellectual Property Strategy was issued in 2008, especially after the 18th CPC National Congress, under the strong leadership of the CPC Central Committee and the State Council, China's IPR work has achieved great results. The goal of "building China into a country with a comparatively high level in terms of the creation, utilization, protection and management of IPRs by 2020," which was set out in the 2008 Outline, has been basically achieved, as is shown in the following aspects:

First, the quantity of IPR creation has increased substantially, making China a major IPR country. From 2007 to 2019, the number of valid invention patents in the Chinese mainland increased from 84,000 to 1.862 million, and the number of valid registered trademarks increased from 2.353 million to 25.219 million. The number of IPR types concerning copyrights, new plant varieties, geographical indications and layout designs of integrated circuits has also increased notably. The number of core patents, famous brands, copyrights of high-quality IP contents and fine new plant varieties has continued to increase.

Second, remarkable results have been achieved in IPR application, effectively promoting economic and social development. As I just mentioned, in 2018, the added value of the patent intensive industry in China reached 10.7 trillion yuan (US$1.51 trillion), accounting for 11.6% of the national GDP. In 2019, China's box office sales reached 64.3 billion yuan (US$9.09 billion), nearly 20 times that of 2007. The total import and export volume of IPR royalties increased nearly fivefold from US$8.5 billion in 2007 to US$41 billion in 2019.

Third, the protection of intellectual property rights (IPR) has been strengthened, and the business environment has been improved. We have established fully-fledged intellectual property laws that are consistent with international norms, and administrative and judicial protections has been improved. The overall score of social satisfaction with intellectual property protection in China reached 78.98 points.

Fourth, public awareness of intellectual property rights has been significantly improved. Public awareness of IPR strategy has seen a remarkably improved rate increase from 3.7% in 2008 to 86.3% in 2017. More and more people are getting used to innovative development, brand consumption, and paying for knowledge. Moreover, the public has realized that it is important to show respect to knowledge and innovation, practice honesty and abide by the law.

Fifth, we have expanded and deepened international cooperation on intellectual property rights, and our international influence in terms of IP protection has been improved significantly. Currently, China has been working with more than 80 countries, regions and international organizations around the globe to protect IPR. It has become an important participant in international rule-making and global governance of intellectual property rights. More and more Chinese enterprises have improved their intellectual property applications overseas. China's number of Patent Cooperation Treaty (PCT) international patent applications topped the world list last year. As I've mentioned just now, the number of applications for international trademarks via the Madrid system ranked third in the world last year.

All these achievements have laid a solid foundation for us to build China into an intellectual property rights powerhouse. To ensure the continuity of the implementation of the Outline of National Intellectual Property Strategy issued in 2008, and following the deployment of the State Council, we are working hard to formulate another outline designed to help China grow into an IP powerhouse by 2035. This is of great significance to better promote the implementation of the two-step approach adopted at the 19th National Congress of the CPC to build China into a strong and modern socialist country by the middle of the century. The National Intellectual Property Administration has been engaging in this assignment since last year. The first draft of the outline has been finished after going through a series of research, study, expert consultation and international comparison and opinions have been preliminarily solicited within a certain scope. Next, we will improve and modify the draft, which is scheduled to be submitted for further review in the second half of this year. Thank you. 

Xinhua News Agency:

The theme of this year's National IP Publicity Week is "IP and a healthy China." What measures can be adopted to build a healthy China in the area of intellectual property rights? Thank you.

Shen Changyu:

Thanks for your question, and also thanks for your attention and support for the campaign. The theme of this year's campaign is "IP and a healthy China," a theme with special significance that was decided based on the current situation of pandemic prevention and control, as well as the theme of the World IP Day 2020 — "Innovate for a Green Future." The theme also shows the important impacts that the protection of IP has on public health. Our work will be carried out in the following aspects: First, we will strengthen IP protection to boost innovative development in the medical sector, develop more new drugs and sophisticated medical devices  and improve the ability and level of treatment. In this regard, we are accelerating amendments to the patent law, and we are establishing a compensation system for the duration of drug patent protection. Second, we will better protect Traditional Chinese Medicine (TCM) to leverage its unique role in medical treatment and disease prevention and control. We have been enhancing the protection of TCM patents and also cooperating with relevant authorities to roll out regulations to protect TCM knowledge. Third, we will boost the geographical indications industry, cultivate more plant species and create more famous brands to ensure food safety. Fourth, we will step up efforts to protect trademarks, copyrights and special symbols to boost cultural and sports industries and enrich people's spiritual and cultural lives. Regarding the IP of the Beijing 2022 Winter Olympics and Paralympic Winter Games, we have achieved all-around, comprehensive protection for the relevant patents, trademarks and special symbols. Fifth, we will protect human genetic resources to build a special shield for people's health. The State Council issued a regulation last year on the management of human genetic resources that went into great detail on the protection of said resources. We will step up efforts to protect IP in terms of the above-mentioned aspects to ensure the development of a healthy China. Thank you. 

Insight China magazine, Chinaxiaokang.com:

The IP operation system is an important guarantee supporting IP utilization. What new progress was made in building China's IP operation system in 2019? The year 2020 will see the completion of the building of a moderately prosperous society in all respects. Does the NIPA have any plans for the next step? Thank you.

Shen Changyu:

Thank you for your questions. As you just said, IP operation is an important part of our IP-related work, which includes IP creation, protection, utilization, management and services. We often say that creation is the source, utilization is the goal, protection is the core, and management is the key. IP utilization mainly aims to realize the value of IP and promote innovative economic development. Statistics show that China's comprehensive IP development index continues to improve, and IP utilization has achieved remarkable progress. 

In 2019, patents were transferred, granted and pledged all over China a combined 307,000 times, up 21.3% compared with the previous year. The pledge financing of patents and trademarks amounted to 151.5 billion yuan, up 23.8% year on year. The turnover of all technology contracts involving IP reached 928.69 billion yuan, up 137.7% year on year. We also accelerated the construction of a group of projects and platforms for IP operation. By the end of 2019, a total of 26 cities had been given priority to building a service system for IP operation. The nine national-level platforms for IP operation housed 121,000 IP registrations, and the number of registered users reached 284,000. Therefore, we have achieved new progress in building the IP operation system.

Next, we will continue to focus on these major cities and promote the common development of operation platforms and pilot projects. We will improve the IP operation system, and promote the realization of the IP value so that it can better support economic and social development. Thank you.

China News Service: 

Mr. Shen mentioned several times just now that China ranked first globally for PCT international patent applications in 2019. My questions are: How will the NIPA consolidate and maintain the No.1 position in the future? And how will we strengthen IP protection overseas? Thank you.

Shen Changyu:

Thank you for your interest. Last year, China filed the highest number of PCT international patent applications, which also aroused worldwide attention. This was the first time that China ranked first. According to the WIPO's annual report released on April 7, China filed a total of 58,990 international patent applications under the PCT System in 2019, ranking top in the world. We attribute this achievement to the country's guidelines on implementing its innovation-driven development strategy and IP strategy. The whole society's innovation capacity and awareness of IP protection continue to improve, and enterprises are also attaching more importance to their IPRs overseas.

China has been a member state of the PCT since 1994, and is also a major participant in the PCT. In the future, China will continue to promote innovative development, expand its opening-up, and further implement relevant programs to improve the quality of patents. 

You also asked how we will help enterprises with IP protection overseas. To this end, we will encourage them to develop global patents portfolio, make further improvements in their PCT international patent applications in terms of both quantity and quality, and promote worldwide innovative development. In order to help enterprises safeguard their rights, we have also established the National Guidance Center for Handling Overseas Intellectual Property Disputes. The center offers guidance to Chinese enterprises on resolving overseas IP disputes. Of course, it also helps them to better understand local IP laws and regulations, and carry out relevant overseas work involving IP.

Xi Yanchun:

Today's press conference is hereby concluded. Thanks again to the speakers, and thank you all. 

Translated and edited by Liu Qiang, Zhou Jing, Duan Yaying, Li Huiru, He Shan, Huang Shan, Wang Wei, Zhang Jiaqi, Wang Qian, Yang Xi, Gong Yingchun, Lin Liyao, Zhang Junmian, Laura Zheng, David Ball, Scott Rainen. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Huang Hong, vice chairman of the China Banking and Insurance Regulatory Commission (CBIRC);

Cao Yu, vice chairman of the CBIRC;

Xiao Yuanqi, chief risk officer and spokesperson of the CBIRC.

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office of China

Date:

April 22, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Huang Hong, vice chairman of the CBIRC, Cao Yu, vice chairman of the CBIRC and Xiao Yuanqi, chief risk officer and spokesperson of the CBIRC. They will brief you about the operations and performance of the banking and insurance sectors in the first quarter. They will also answer your questions. 

First, I will give the floor to Mr. Huang.

Huang Hong:

Friends from the media, good morning. First, I will brief you on the prevention and control of the pandemic situation within banking and insurance institutions. As of yesterday, a total of 1,065 people in banking and insurance institutions nationwide had a confirmed COVID-19 infection, including 933 people in Hubei province, and a total of 1016 people have recovered, including 887 in Hubei. 42 people have died, including 41 in Hubei. Some family members of employees of banking and insurance institutions have died from COVID-19. We mourn the loss of them and we will work harder and provide better service to the public to commemorate their death. Currently, seven employees of the banking and insurance institutions are still being treated in the hospital and 8 people are asymptomatic cases, including six in Hubei. One of them has recovered. Up to now, except for Hubei, the resumption rate of banking and insurance institutions across the country is at about 97%, and the resumption rate of banking and insurance branches has reached 99%. More than 60% of banking and insurance institutions, and 90% of banking and insurance branches in Hubei, have resumed work. The resumption rate of banking and insurance institutions and branches in Wuhan have steadily increased, and basic financial services are guaranteed.

Currently, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the progress in prevention and control of the COVID-19 epidemic in China has been further enhanced, and economic and social operations have gradually returned to normal. The CBIRC has resolutely implemented the decisions and deployments of the CPC Central Committee and the State Council. In accordance with the requirements of "maintaining stability in six key areas, namely with respect to employment, finance, foreign trade, foreign investment, domestic investment and expectation" and "ensuring the employment of residents, the basic livelihood of the people, the support for market entities, the security of food and energy, the stability of the supply chain and industrial chain and the operation at grassroots level," we have successively issued many policies and measures to increase financial support for pandemic prevention and control as well as economic and social development. We have been working to facilitate the resumption of work, production, business and the market. We have focused on preventing and defusing financial risks while also ensuring the stable operation of the banking and insurance sector.

First, all-out efforts have been made to provide financial services for pandemic prevention and control. By reducing the deposit reserve ratio, relending and rediscounting, banking institutions have effectively reached out to enterprises that manufacture and transport important medical supplies and daily necessities, providing preferential interest rates and special credit quotas for them. Insurance institutions have set up fast tracks for customers who have been affected by the epidemic to settle claims, appropriately expand the scope of insurance compensation liability and strive to provide insurance for all the insurable and settle the claims that should be settled.

Second, we will provide liquidity support for enterprises in a timely manner and help small and medium-sized enterprises (SMEs) surmount their difficulties. We have increased support for SMEs in terms of credit: inclusive loans for SMEs have increased by 25.93% year-on-year at the end of the first quarter; the interest rates of the inclusive loans issued by the five large banks is 4.3%, 0.3% down the level of 2019. We have also increased credit loans. In the first quarter, credit loans issued to enterprises and individual business owners increased by 2.5 trillion yuan, with the increment almost twice the level of the same period last year. We have optimized loan renewal arrangements, expanded the scale of renewal and helped ease pressure on cash flow among enterprises. In the first quarter, a total of 576.8 billion-yuan loans were renewed, of which nearly 90% went to micro, small and medium-sized enterprises and individual business owners. Business are allowed to defer principal and interest payments, and we have deferred the payments on about 880 billion yuan worth of loans. There are also flexible arrangements for paying mortgage loans and consumption loans, which effectively reduce the pressure on enterprises and residents. 

Third, we are looking to maintain the stability of industrial chains and supply chains, as well as support all links in industrial chains to help them resume work and production in a coordinated way. We are taking significant steps to develop supply chain finance, and we have taken the initiative to connect with core enterprises of the industrial chain. Financing support is also being provided for upstream and downstream enterprises of the industrial chain to ensure the smooth flow of funds by means of receivables, orders and warehouse receipt pledges. By the end of the first quarter, banks provided capital turnover to 218,000 core enterprises of the industrial chain, with a balance of 21.4 trillion yuan. Banks also provided financing support to 297,000 upstream enterprises, with a balance of 5.8 trillion yuan. And banks provided financing support to 353,000 downstream enterprises, with a balance of 9.3 trillion yuan.

Fourth, we want to increase financial support for the real economy and promote the expansion of domestic demand. In the first quarter, new yuan-denominated loans hit 7.1 trillion yuan, an increase of 1.3 trillion yuan year-on-year. The new loans were mainly invested in the manufacturing, wholesale and retail and infrastructure sectors, with increased lending in these sectors of 1.1 trillion yuan, 0.9 trillion yuan, 1.5 trillion yuan, respectively, which has effectively supported the development of high-tech manufacturing, the upgrading of traditional industries, household and public consumption and investment in infrastructure. We support direct financing, such as bonds and equity, and provide comprehensive financing services for enterprises. In the first quarter, banks and insurance institutions increased bond investment by 2 trillion yuan, of which more than 360 billion yuan was invested in corporate credit bonds. An additional 126.3 billion yuan of equity investments was invested in insurance.

Fifth, we are seeking to guarantee the functions of the insurance sector. We will actively expand the scope of claims, increase speed and improve the efficiency of claim settlement. Insurance claims in the first quarter totaled 301.9 billion yuan. We will actively deal with social risk protection needs during the pandemic and develop and promote security insurance products, such as health insurance. The health insurance business grew by 21.5% year-on-year. We gave full play to the role of credit guarantee insurance in sharing credit losses. In the first quarter, the payment of credit guarantee insurance was 16.1 billion yuan, which was up 50% year-on-year.

The outbreak of COVID-19 has had an unprecedented impact on China's economic and social development. Loan delinquencies and defaults increased, and non-performing loans increased as a result of the pandemic. The banking industry still maintains a strong ability to withstand risks, and various regulatory indicators are operating at a high level.

Next, CBIRC will earnestly implement requirements for handling trade frictions and keeping employment, the financial sector, foreign trade, foreign and domestic investments and expectations stable, as well as ensuring the employment of residents, the basic livelihood of the people, the support for market entities, the security of food and energy, the stability of the supply chain and industrial chain, and the operation at grassroots level. We will work in a coordinated manner to provide financial support for the prevention and control of the pandemic and to serve the real economy and stave off risks. We will work hard to maintain economic development and social stability, and we will provide strong financial support to win the battle against poverty and for building a moderately prosperous society in all respects. 

Thank you！

Xi Yanchun:

Thank you, Mr. Huang. Let's move on to the question and answer section. Please inform us of your news organization before asking questions.

CCTV: 

A series of financial support policies for the resumption of production have been issued by CBIRC and other related departments since the outbreak of COVID-19. However, some enterprises said they have not yet felt or seen the effects of these policies. How about the implementation of these policies? What are the concrete plans to accelerate the implementation of the policies in the near future? Thank you. 

Huang Hong:

Thank you for your questions. Since the outbreak of COVID-19, the CBIRC has earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, and it has also made overall plans for the prevention and control of the pandemic and the financial services related to economic and social development. A series of measures to support the resumption of work and production has been issued by CBIRC or other related ministries, which can be summarized as follows: 

First, we will optimize financial services in the field of pandemic prevention and control. Financial institutions are required to actively meet reasonable financing needs of health and pandemic prevention, pharmaceutical product manufacturing and procurement, public health infrastructure construction, and scientific research. We encourage financial institutions to help enterprises overcome the impact of the pandemic by appropriately lowering loan interest rates, improving policies on loan renewal, and increasing credit loans, along with medium- and long-term loans. According to statistics from the China Banking Association, bank institutions alone have provided more than 2.5 trillion yuan in credit to help fight the pandemic.

Second, a provisional deferment policy for both principal repayment and interest payment has been implemented for micro, small and medium-sized enterprises. In accordance with market principles and law, loan principal repayments that have matured since January 25, as well as interest payments, have been deferred provisionally for virus-stricken micro, small and medium-sized enterprises, with penalty payments exempted; their loan risk classification and credit records will not be affected. As of the end of March, banking institutions had deferred principle and interest payments on nearly 880 billion yuan (US$125.7 billion) of loans to micro, small and medium-sized enterprises.

Third, all links in the industrial chains have been pushed to resume work and production in a coordinated way. Banks have been encouraged to follow up and meet upstream and downstream enterprises' needs for work and production resumption and support them to raise funds through approaches including receivables, warehouse receipts and inventory pledges. The core businesses, after getting financing, have been encouraged to promote cash transactions between upstream and downstream companies as a way to reduce capital pressure and financial costs of micro, small and medium-sized enterprises.

Fourth, we have continuously improved quality and efficiency of inclusive financial services for small and micro enterprises. In the light of the overall goal of "increasing quantity, expanding coverage, improving quality and reducing costs," we have strengthened supervision of classified assessment, and urged banking institutions to stabilize credit supply and enhance the financial support to small and micro enterprises. By the end of March, the inclusive small and minor businesses loans stood at 12.55 trillion yuan (US$1.79 trillion), with a 25.93% jump year-on-year, which is much higher than the increases for other types of loans. 

Generally speaking, these policies have been implemented quite smoothly, and produced initial effects. However, we still found some problems in the following four aspects. First, some enterprises are not eligible to apply for loans; second, some cannot enjoy the policy support due to factors such as a third party's guaranteed renewal; third, there are some firms that did not apply because they were not aware of the specifics of these policies; fourth, some banking and insurance institutions have been negligent and failed to offer desirable services — responsibility for this final factor lies squarely on our shoulder. As a result of the above-mentioned problems, some enterprises felt they didn't enjoy the policy support, as you just mentioned.

The China Banking and Insurance Regulatory Commission (CBIRC) has attached great importance to these problems and taken actions to address them. Today, let me take this opportunity to invite our media friends to help by publicizing the financial supportive policies to more enterprises. Next, we will continue efforts to implement our policies and take such measures as window guidance, policy guidance, monitoring and statistical analysis, and summary and assessment to guide banking and insurance institutions to ensure flexible and efficient use of these policies. Efforts will also be exerted to promote coordination between banks and enterprises. By so doing, we will ensure that the policies are well-implemented and highly-effective, increasing enterprises' sense of gain. Thank you.

China News Service:

We know that the governance of small- and medium-sized banks and institutions is one of the key tasks of the supervision work. So, what are the specific measures being taken for this year's supervision? For those non-compliant shareholders, how is the work clearing their equities progressing?

Huang Hong:

Thank you for your question. I'll let Mr. Cao Yu take this one.

Cao Yu:

Thank you for interest in small- and medium-sized banks. The Central Committee of the CPC and the State Council have attached great importance to the supervision of small- and medium-sized banks and institutions. At the 2017 National Financial Work Conference, General Secretary Xi Jinping explicitly stated that we must improve the governing work of financial institutions' legal persons. In November 2019, the Financial Stability and Development Committee held its 9th conference and conducted a special study on deepening the reform of small- and medium-sized banks and resolving financial risk. The committee also emphasized the practice of sound corporate governance. Accordingly, the CBIRC cooperated with relevant departments to establish specific work plans and refine the governance requirements in detail.

Our current priorities for the governance of small- and medium-sized banks and institutions are: deeply integrating the Party's leadership and the governance of these banks and institutions, developing an evaluation system for their governance, and strengthening the "three boards and one management" system of supervision and accountability. The shareholders' structure must be optimized, the qualification of shareholders must be strictly checked, and their behavior must be regulated. A series of policies and regulations has been issued by the CBIRC, such as equity management measures, corporate governance supervision and evaluation measures. These documents have been laid as the regulation foundations for carrying out relevant works.

So far, initial progress has been achieved in the governance of small- and medium-sized banks and institutions. First, we have scaled up efforts to restrict irregularities and illegal equity-related actions, and constrain non-compliant shareholders. Last year, the CBIRC launched a campaign focused on regulating non-compliant shareholders and their affiliate transactions. Over 3,000 violations were found, and punishments were meted out. Over 1,400 non-compliant shareholders acting as natural persons or legal persons were cleared out. Since 2018, we have launched special investigations into small- and medium-sized banks and institutions within rural areas. So far, we have ordered non-compliant shareholders to transfer 3.3 billion equities, and we have punished 74 institutions to the value of 51.65 million yuan. Second, we have steadily conducted governance work to remove non-compliant shareholders and transfer their equities in high risk institutions. During the process of dissolving the risks in Baoshang Bank, the CBIRC prioritized governing non-compliant shareholders' equities and launching market oriented mergers and restructures. So far, progress has been made both in tackling risks for Baoshang Bank and in its reformations and reorganization work. For other institutions which have problems and have gained the attention of society, equity restructure plans have been enacted, and non-compliant shareholders have been removed and asked to withdraw their equities.

Although we have made some progress, we still face challenging tasks in enhancing the governance of small- and medium-sized banks and institutions. Next, the CBIRC will continue to act in accordance with market- and law-oriented policies to strengthen the regulation work and step up the centralized custody of equities. We will also further strictly check the qualifications of shareholders and reinforce pass-through management. Thank you.

The New York Times:

Many commodity exporting nations are running into difficulties now with low prices for oil and other raw materials. How would you handle impaired loans by Chinese banks to developing countries? And you are already saying there are impaired loans. Thank you.

Huang Hong:

Thanks for your question. We will have Mr. Xiao Yuanqi, chief risk officer of the CBIRC, take the question.

Xiao Yuanqi:

Thanks for your question. Both in China and overseas, Chinese banks have various business dealings, including loans. Affected by the COVID-19 outbreak and other factors, the global market has seen some turbulence, including in the financial sectors and the world economy as a whole. This has inevitably had an impact on the banks' overseas loans. This is not an issue limited to Chinese banks, as foreign banks are facing it too.

On the one hand, our banks should act in line with the market principles and laws in order to continue their normal operations in other developing countries and developed countries. On the other hand, we must bolster the risk assessment. Risk management in various sectors will be improved based on customer segmentation for banks. More importantly, these banks should strictly abide by Chinese laws and regulations, as well as those laws and regulations enforced in host countries and regions. Meanwhile, Chinese banks must carry out normal commercial activities in foreign countries in strict accordance with international rules. Thanks.

CRI:

How will the pandemic affect China's property and life insurance sectors? What roles will they play in boosting economic development? Thanks.

Huang Hong:

Thanks for your questions. I will take this one. As the pandemic continues to spread across the world, the global economy is facing mounting downward pressure. In China, the outbreak has posed new challenges and difficulties to the resumption of work and production , as well as domestic economic and social development. Economic fallout from COVID-19 has also weighed heavily on China's insurance industry with increasing uncertainties and instabilities. The impacts can be summarized as follows:

First, the growth of the insurance industry was under pressure. The epidemic caused a negative impact on production and people's life, as well as mounting downward pressure on the economy. As a result, the operation of insurance services was restrained and the growth of the industry faced great pressure. In the first quarter of 2020, the original insurance premium income grew just 2.3% year on year to 1.67 trillion yuan. Growth in original premium income plunged 13.6 percentage points in the quarter. The growth of property and life insurances decreased by 7.7 and 15.22 percentage points, respectively, from the same period last year.

Second, the income of some companies and individuals was hampered by increased volatility in business operations, causing them to have a hard time repaying funds and leading to a higher default rate. As mentioned above, credit guarantee insurance compensation expenses jumped about 50% — a significant rise in the first quarter. Other types of insurances, such as accident, health, agriculture and business interruption insurances, as well as insurances protecting people from contract delay or cancellation, have also seen their compensation expenses go up significantly. Additionally, there are increasing instabilities in the investment returns of insurance companies, as their business was hampered by the turbulence in global capital markets.

Third, expenditures of insurance companies have also gone up amid the outbreak, further increasing amortized costs.

Despite being challenged by the pandemic, the insurance industry can also benefit from a number of upsides that have resulted from it. Looking at the environment from a macro-economic perspective, the pandemic's downsides to economic and social development will be gradually lessened with the implementation of policies and measures adopted to prop up the resumption of work and production, increases in domestic demand and consumption, accelerated poverty alleviation work and sustained financial stability. Stable and long-term positive economic performance trends have not changed. At the same time, demand for insurance guarantees will ride the tide to secure consecutive growth when social risk awareness and individual insurance awareness become notably increased by a deepened understanding of the industry. Considering business cycles, as of mid-April, 99% of enterprises across the country that are above a designated size have resumed work, major nation-level projects and infrastructure constructions have made stable progress, public hygiene and suppliers of emergency products have received increasing investments and new-tech infrastructures, such as 5G and data centers that have been constructed in an expedited fashion. The insurance industry has received greater space for development as a result of the demand derived from new consumption models. The insurance industry has guaranteed sufficient reserves for reimbursements and ensured stable fluidities. Here, I would like to stress, in particular, that despite the recent, narrowing year-on-year growth rates, our business restructuring has made great headway in increasing the net cash flow at a substantial rate, which proves my mentioning that the fluidities are stable enough to cope with the brunt of adversities. The industry has reformed its management styles, reinforced scientific and technological innovation, transformed business models, improved management efficiencies, ensured scientific, technological and digitalized advancements and strengthened competitiveness to better meet the personal and social demands for insurance coverage.

In the next phase, the CBIRC will direct and boost the insurance industry's role in helping fulfill the "six guarantees" that can be fleshed out as follows. First, the industry is supposed to increase its supply to prepare for the resumption of work and production. In its active response to the growing demand for social insurance, the industry will increase the supply of healthcare insurances, especially medical insurance. The innovative products, exemplified by the "Hainan Comprehensive Insurance on Resumption of Work and Production in Line with Epidemic Prevention and Control Efforts," are supposed to coordinate efforts among industrial chains involved in work resumption. Second, guarantee insurance should play its role in ensuring financing and credit enhancement in a bid to bolster micro- and small-sized businesses, emancipating them from financial stresses and reducing their fundraising costs by offering more credit loans. Third, support to agriculture production should be guaranteed. Agricultural insurance should be given a boost, standards should be improved, spectrums expanded and services enhanced. Insurance mechanism devised to insure the three major staple foods during disasters and policy-led insurance regulations for hog supplies should be improved. In addition, the industry will also support agricultural production and work to avoid big price fluctuations on non-staple foods. Fourth, investments and exports should be buttressed to proactively guarantee a stable economic performance. The industry should enhance its risk-control capability to guarantee the smooth operations of the country's major projects, supporting traditional and modern infrastructural constructions. It should also develop export credit insurance to safeguard export enterprises and promote provisions for products to countries and overseas subsidiaries of Chinese companies that are involved in the Belt and Road Initiative. Fifth, the insurance funds, because of its diverse utilities, should be given full play to invest more in the country's key industries and core areas, allowing them to financially support domestic economic development. Sixth, insurance agent team should be expanded and more jobs should be added.

China National Radio (CNR):

Faced with the impact of the COVID-19 pandemic, will the banks' non-performing loan ratio continue to rise, or even rise sharply, in the second quarter and bring great risks? And how will the regulatory authorities respond to this? Thank you.

Huang Hong:

Thanks for your question. Mr. Xiao will answer it.

Xiao Yuanqi:

Thanks for your question. We are all concerned about the non-performing loan ratio. The data shows that the non-performing loan ratio rose in the first quarter, and the current ratio is 2.04%, 0.06 percentage points up from the beginning of this year. The ratio concerning small and micro enterprises and industries like catering and hospitality that have been severely affected by the pandemic has increased relatively fast, which is within our estimation range. We have paid close attention and conducted an analysis of the non-performing loan ratio in the second quarter, and we will continue to do so for some time to come. We think that the ratio will further increase in the near future but won't climb high. We are resuming work and production in an orderly manner, and we have implemented a series of hedge policies to mitigate risks. The policies and measures have begun to show their effectiveness.

In terms of supervision, we have recently been conducting analysis and close monitoring. First, we have conducted stress tests, including differentiated tests set by different steps and circumstances, as well as comprehensive tests. Second, we have intensified efforts to dispose of non-performing loans. In the first quarter, we disposed of non-performing loans worth more than 450 billion yuan ($63.53 billion), increasing by 81 billion yuan ($11.43 billion) over the same period of last year. Additionally, we have expanded our channels and methods of disposal, which not only reduced the non-performing loans of the banks but also provided them with conditions to create more new loans to support enterprises. Third, we have asked all banks to make more efforts to support enterprises, especially medium, small and micro enterprises, in their resumption of work and production. The support given to the enterprises is a measure of the banks to prevent risks because as long as the enterprises can develop well, the non-performing loans of the banks will decrease. The difficulties encountered by the enterprises are temporary, and they are caused by external factors. Before the COVID-19 outbreak, the fundamentals of most enterprises were good. However, since the pandemic, lots of enterprises have had to face temporary difficulties in operation and cash flow, which have made them fail to repay their loans on time. In addition to hedge measures, the banks should also strengthen their capabilities in risk management and segmentation of customers to separate enterprises affected by the pandemic from those that previously had operating problems. Most of the enterprises in difficulty belong to the former group.

We have sufficient provisions and capital to fend off risks. At present, we have provisions worth more than 6 trillion yuan ($840 billion), which give us strength in facing the challenge. In short, there will be a small increase in the non-performing loans of the banks. However, thanks to all these measures, we believe that risks can be controlled completely, and our ability to fend off risks is sufficient. Thank you.

China Review News:

The Luckin Coffee fraud has garnered a great deal of attention recently. What is the supervision department's take from this? How many loans has Luckin taken from the banks? What are the risks? Will the directors liability insurance cover this? Thank you.

Huang Hong:

I'd like to invite Mr. Cao Yu to answer this question.

Cao Yu:

Thanks for the question. Many people here are consumers. A market economy is governed by law. Observing disciplines, obeying laws and being honest is a basic requirement of Chinese law for the main body of a market economy. It is the legal obligation of all enterprises to truly, comprehensively and truthfully reflect the financial and accounting situation of enterprises.

The Luckin fraud is a flagrant offense, and it will offer profound lessons. The CBIRC will firmly support and actively cooperate with the department in charge to impose severe punishment according to law. A zero-tolerance attitude will be taken toward financial fraud to maintain a sound market environment. 

As far as we are concerned, Luckin Coffee has a small loan standing with the banks and an even smaller loan balance. We have already urged relevant banks to enhance capital risk monitoring and post-loan management. Regarding the directors liability insurance, Luckin Coffee bought the directors liability insurance before listing. There are four levels of insurance policy with a total limit of $25 million, and a dozen insurance companies from home and abroad have been involved. Some of them issued reinsurance to this business. We understand that the insurance companies have received Luckin's claims. Considering that the case is complicated, the investigation is still ongoing and uncertainty exists. We will urge relevant insurance companies to properly handle it according to laws and regulations and in accordance with the contract provisions of insurance policy. Thank you.

Phoenix TV:

We have seen major fluctuations in Shenzhen's real estate industry. Many analysts have attributed this to subsidized loans that have flowed into the real estate market. What is the opinion of the CBIRC on this matter?

Huang Hong:

Thanks for your question. Mr. Xiao Yuanqi, the chief risk officer, will answer it. 

Xiao Yuanqi:

Thank you. This has been a matter of concern recently. Our Shenzhen Office and the Shenzhen Central Sub-branch of the People's Bank of China have taken appropriate supervision measures. We hold that loans should be used in strict accordance with the application, and no diversions should be allowed. For mortgage lending businesses, both operation and mortgage loan usage should correspond with the intended use of the funds as written on the applications. We require the banks to monitor the money flow and make sure that funds are used for the right purposes; as for loans that have been illegally moved into the real estate industry, we have asked them to diligently make corrections. Thanks.

Financial Times:

How does the pandemic impact the solvency of small and medium-sized commercial banks? Do you anticipate more monitoring and reform measures to emerge this year?

Huang Hong:

Thanks for your question. Mr. Cao Yu, vice chairman of the CBIRC, will answer it. 

Cao Yu:

Thanks for your question. In China, there are more than 4,000 legal entities that are small and medium-sized banks, with total assets of around 77 trillion yuan. Small and medium-sized banks are the main force to provide financing services for the agriculture sector and small and medium-sized enterprises. Since the management ability and business capacity of these banks is limited, and especially since their customers are special to some extent, the impact of the pandemic on these banks is quite noticeable. 

To this end, according to the requirements of the Financial Stability and Development Committee under the State Council, the CBIRC has gone all out to deepen the reform of small and medium-sized banks and dissolve risks. Several departments in our sector have produced relevant work programs, which have thus far gone smoothly. This year, a string of great and significant reforms to small and medium-sized banks will occur, particularly in regard to market restructuring. Here, I would like to inform you that relevant sectors have provided favorable conditions for small and medium-sized banks, particularly with respect to the policies regarding renewal loans and targeted cuts to required reserve ratios. The CBIRC will also implement differential policies for the banks. All of these will create favorable conditions for their reform.

We believe that with our joint efforts the small and medium-sized banks will get onto a path that allows for sound development. In particular, they will provide more financing services for the agriculture sector and small and medium-sized enterprises, and fully realize their roles. We would like to call on every aspect of society to pay attention to the development of small and medium-sized banks and provide an excellent internal and external environment to allow for their sound development. Thank you. 

Hong Kong Economic Herald:

What measures will be taken to deal with small and micro businesses that lack credit records but want to get a loan for the first time?

Huang Hong:

Thank you. Mr. Xiao will answer your question.

Xiao Yuanqi: 

We attach great importance to this matter. The China Banking and Insurance Regulatory Commission (CBIRC) has done a great deal to provide inclusive financial support to small and micro-enterprises. Currently, there are indeed still some small and micro businesses, especially micro-enterprises and individually-owned businesses, who have not obtained credit support or bank loans. The reasons for this are multifaceted. Some enterprises don't meet the loan requirements and some don't have access to the service. We have been stepping up measures to ensure that small and micro enterprises get loans. In particular, we will strengthen services for small and micro enterprises that haven't obtained their first loans yet to fulfill loan demand and raise the first loan ratio.

China Daily:

It has been reported that some banks and insurance institutions sold millions of pieces of their client's information. Is this true? What will the China Banking and Insurance Regulatory Commission (CBIRC) do to ensure the information security of clients? Thank you.

Huang Hong:

Thank you. I will take your question. The CBIRC has adopted a zero-tolerance attitude towards acts that infringe on the rights and interests of financial consumers and damage the information security of clients. Once discovered, such acts will be investigated in accordance with the law and punished severely. We have taken note of the media reports. In fact, we had already begun monitoring the illegal sale information outside of China two days before the reports came out, and we immediately asked relevant institutions to carry out a sweeping investigation. The institutions have subsequently released responses. Most of the information was fabricated and patched up by hackers.

The CBIRC attaches great attention to the cybersecurity of banks and insurance institutions, and the protection of client information, in particular, is a top priority. Over the years, we have issued a lot of regulatory policies requiring banks and insurance institutions to implement individual information protection laws and regulations, enhance the protection of clients' private information and strictly carry out institutionalized management of client information from collection, to storage to destruction.

The CBIRC established long-term working mechanisms that involve cybersecurity risk monitoring, risk warning, off-site supervision, on-site inspection and supervision rating, and incorporated the protection of client information in the banking and insurance sector into daily information technology risk monitoring. The CBIRC has also held special campaigns for client information protection and cybersecurity of the banking and insurance sectors at irregular intervals, thereby guiding and supervising banks and insurance institutions to strengthen the investigation and rectification of cybersecurity risks.

Next, the CBIRC will uphold the principle of "supervision for the people," further enhancing the cybersecurity supervision of the banking and insurance sectors and urging banks and insurance institutions to keep intensifying relevant work. We will further create a safe and reliable internet financial environment and protect the rights and interests of financial customers.

Xi Yanchun:

Thanks again to the speakers and everyone else. Today's press conference is hereby concluded.

.

Read in Chinese

Speaker:

Peng Huagang, member of the CPC Committee of the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, secretary general and spokesperson of SASAC

Xia Qingfeng, head of the SASAC Department of Publicity and spokesperson of SASAC 

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office

Date:

April 20, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media, good morning. Welcome to this press conference. Today, I am delighted to welcome Mr. Peng Huagang, member of the CPC Committee of the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, secretary general and spokesperson of SASAC; and Mr. Xia Qingfeng, head of the SASAC Department of Publicity and spokesperson of SASAC. They will introduce the performance of state-owned enterprises managed by the central government (centrally administered SOEs) in the first quarter of this year. They will also answer some of your questions.

First, I'll give the floor to Mr. Peng.

Peng Huagang:

Friends from the media, good morning. First, please allow me to extend my appreciation to you for your long-term attention and support for SASAC and centrally administered SOEs. Before answering your questions, I'd like to make a brief introduction to the performance of centrally administered SOEs in the first quarter of this year.

The first quarter of this year was extremely unusual, as the sudden COVID-19 outbreak caused an unprecedented impact on China's economic and social development. The SASAC and centrally administered SOEs firmly acted on the guiding principles embodied in General Secretary Xi Jinping's important speeches as well as policies and plans made by the CPC Central Committee and the State Council. We went all out to fight against the pandemic, establishing strong leadership and an efficient working mechanism. We mobilized all staff members and developed comprehensive plans to improve our work in all aspects. In this way, we've made a positive contribution to coordinating epidemic prevention and control with economic and social development.

In the first quarter, the outbreak visibly increased instability and uncertainty on China's economic development and blocked the economic cycle, thus creating downward pressure far greater than expected. Centrally administered SOEs faced multiple challenges in their production and business operations, leading to a decline in major indicators.

Peng Huagang:

Compared with the first quarter of last year, the total operating revenue of centrally administered SOEs fell by 11.8% to 6 trillion yuan this time round, and more than 80% of those enterprises saw their revenues decline. The total net profit reached 130.4 billion yuan, down 58.8% year-on-year. 57 centrally administered SOEs saw a decrease in their net profits, and 26 made losses. In terms of monthly data, although the total net profit in March showed a sharp recovery from that in February, they were much lower compared with the same period last year. 

As the virus is raging across the world, the domestic and global demand for commodities, such as crude oil, has shrunk, forcing sharp falls in oil prices. Some centrally administered SOEs in the energy industry implemented national policies by lowering prices to benefit customers. Under the combined influence of market developments and relevant policies, centrally administered SOEs in petroleum and petrochemicals, aviation, automobile, and electrical grid sectors saw a massive drop in both revenues and profits.

On the whole, most centrally administered SOEs have encountered unprecedented difficulties in their production and business operations and come under intense pressure to increase profits. However, all enterprises are taking various measures to overcome difficulties and recoup their losses, thus maintaining a stable overall performance.

First, centrally administered SOEs are accelerating the resumption of work and production, with business operations back on track. Enterprises in petroleum and petrochemicals, power and grid, steel, machinery manufacturing, and air transportation sectors didn't suspend production during the Spring Festival and the outbreak. Instead, they made an all-out effort to stabilize operation. By the end of February, more than 90% of centrally administered SOEs had resumed production, and now the figure has reached 99.4%. Despite difficulties, centrally administered SOEs in construction, automobile, tourism, and other sectors hit hard by the outbreak returned to work earlier than other enterprises in the same sector. Centrally administered SOEs responsible for crucial projects did their utmost to ensure the progress of key projects.

Second, most centrally administered SOEs reported better profitability. With the work of COVID-19 prevention and control being conducted steadily and positively across China, the operating revenues of centrally administered SOEs reached 2.2 trillion yuan, returning to the same level as January. A total of 11 central SOEs saw year-on-year growth in the first quarter. In March, the profitability of 43 central SOEs returned to the average growth level in 2019, while 37 central SOEs saw the rate of profit decline by more than 10 percentage points from the first two months of 2020.

Peng Huagang:

Third, investment in key industries grew steadily. As a result of work suspension amid outbreak, the fixed asset investment of centrally administered SOEs in the first quarter amounted to 364.76 billion yuan, falling 4.5% year-on-year. However, such investment grew 4.1% on a yearly basis in March, and the monthly investment had returned to a normal level. 

In terms of key industries, the fixed-asset investment of central SOEs in petroleum and petrochemical, power, and telecommunications sectors surged 12.4%, 2%, and 12.3% on a yearly basis respectively in the first quarter of this year.

Fourth, the financial structure of centrally administered SOEs remained stable. By the end of March, the average asset-liability ratio of centrally administered SOEs stood at 65.6%, down 0.1 percentage points from the same period last year. The asset-liability ratio of 56 centrally administered SOEs declined yearly, and 37 companies saw a fall by at least 1 percentage point. The average ratio of interest-bearing liability was 40.3%, flat with the same period last year. The current ratio and quick ratio increased slightly year-on-year. The overall solvency of centrally administered SOEs remained stable in the first three months.

Due to the impacts of COVID-19 outbreak, slumping oil prices and interest concession policies, China's central SOEs have seen a major decline in their profits for the first quarter. But despite this, it was still not easy for central SOEs to deliver such economic performance, as they have made far more efforts than usual to fight the epidemic while resuming production and promoting development.

This year will witness the last step of China's efforts to build a moderately prosperous society in all respects and win victory over the battle against poverty. As we were hit by the spread of the pandemic, our tasks will be much more challenging and we still have a long way to go before achieving our social-economic development goals. The State-owned Assets Supervision and Administration Commission (SASAC) of the State Council will join hands with central SOEs to comprehensively analyze the impacts of the epidemic, withstand the pressures and further focus on our objectives and tasks. We will also implement precise policies to overcome the adverse effects of the epidemic. On the basis of implementing regular epidemic prevention and control measures, priority will be given to "three stabilities,""four guarantees" and "one strengthening."

"Three stabilities" means that we will firstly stabilize the smooth operation of central SOEs, coordinate domestic and international markets, and ensure well-organized production, transportation, sales and storage. Secondly, we will stabilize the industrial chain and give full play to the leading role of central SOEs to maintain the stability and competitiveness of China's industrial chain and supply chain through coordinating their upstream and downstream companies. Thirdly, we must stabilize enterprises. We need to guard against any risks to ensure that the state-invested enterprises, except those "zombie enterprises", do not go bankrupt, significantly cut pay or lay off employees, and do not add destabilizing factors to our society.

Peng Huagang:

"Four guarantees" refers to work in the following four respects: First, we must guarantee the country's economy and people's livelihood. Efforts will be made to fully ensure supplies of primary products and services, including coal, electricity, petroleum, gas, communications, and grain, so as to provide powerful support for maintaining normal economic and social order. Second, we are guaranteeing the implementation of major projects. We will make all-out efforts to ensure that major science and technology programs, major projects set out in the 13th Five-Year Plan, and major projects under the Belt and Road Initiative (BRI) can be steadily advanced and implemented as scheduled. Third, we will guarantee workplace safety. We will require enterprises to strictly assume primary responsibility for safety, and launch a three-year full-scale special campaign to ensure workplace safety as the epidemic prevention and control will probably become a long-term new normal. Fourth, we will guarantee high-quality development. We will follow the new development philosophy, put quality first and give priority to performance. We will work hard for better quality, higher efficiency, and more robust drivers of economic growth through reforms. We will strive to achieve economic growth with quality and efficiency to better serve the work of the Party and the country. 

"One strengthening" means that we will uphold the leadership of the Communist Party of China (CPC) and strengthen Party building. In this respect, we will bring into full play the leadership role of the Party committees or leading Party members' groups at central SOEs, the pivotal role of the Party organizations at all levels, and the vanguard and exemplary role of the Party members and officials. By so doing, we will be able to provide a strong guarantee for coordinating the epidemic prevention and control work with the reform and development of our enterprises. 

Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the SASAC and central SOEs will strengthen consciousness of the need to maintain political integrity, think in big-picture terms, follow the leadership core, and keep in alignment. They must also increase confidence in the path, theory, system, and culture of socialism with Chinese characteristics; and resolutely uphold General Secretary Xi Jinping's core position on the Party Central Committee and in the Party as a whole, and resolutely uphold the Party Central Committee's authority and its centralized, unified leadership. We will conscientiously implement the policy decisions and plans of the CPC Central Committee and the State Council, face up to difficulties, and work hard to regain the lost time caused by the outbreak and reduce economic losses. We will ramp up efforts to secure our annual growth targets, and make more contributions to achieving the goal of securing a decisive victory in building a moderately prosperous society in all respects and winning victory over the battle against poverty.

Next, Mr. Xia Qingfeng and I will take your questions. 

Xi Yanchun: 

Thanks to Mr. Peng Huagang for his introduction. Now, the floor is open to questions. Please identify your media organization before asking questions.

CCTV:

Mr. Peng, you just mentioned that China's centrally administered state-owned enterprises (SOEs) saw profits and revenues dive during the first quarter. Would you like to explain the reasons for us? Thanks.

Peng Huagang:

Thanks for your question. I just mentioned that the production and operation of centrally administered SOEs have been hit hard by the outbreak and slumping oil prices. In the meantime, centrally administered SOEs have taken measures in response to the outbreak, and this has led to the plunge in revenues. The major reasons are as follows:

First, direct-to-consumer industries like the aviation, automobile and tourism industries have been hit hard by the pandemic. In the first quarter, there was a plunge in air traffic passenger demand, with decreasing passenger trips and seat occupancy rates. Some companies have incurred losses, and the aviation industry has generally operated at a loss. As vendors and suppliers are unable to resume production and operation in time, the sales of automobiles have decreased by 30% from the previous year, shaving revenues by 10 billion yuan in the first quarter compared to the same period last year. Dongfeng Motor, which is located in the former epicenter of the outbreak, has faced more serious repercussions. As almost all travels and business trips were postponed due to the outbreak, numbers of visiting tourists and hotel occupancy rates fell greatly, resulting in huge losses in revenues.

Second, the plunge in international crude oil prices has led to a significant reduction in profits by centrally administered oil and petrochemical enterprises. The price of Brent crude oil fell from $68 per barrel in early January to $23 per barrel at the end of March, which showed a drop of more than $40. Though the plunge in oil prices lowered the costs of overall national economic operation, it also had impacts on the operation and production of the centrally administered oil and petrochemical enterprises. As the market demand decreased in the first quarter, the sales of refined oil fell by more than 20%. Companies in petroleum exploration and refining industries reported that their revenues cannot cover costs. Oil and petrochemical enterprises are losing money. All of these factors led to a 30-point reduction in the growth of profits for the centrally administered SOEs.

Third, centrally administered SOEs implemented policies to give up profits amid the outbreak. SOEs firmly carried out policies to ease consumers' costs by 45 billion yuan, including reducing the price of electricity, gas and rent, and they also waived road and expressway toll fees. For example, the grid companies have taken measures to reduce the price of power used in large industries and common commerce by subtracting 3.3 cents per kilowatt-hour from the price of electricity, reducing the operational costs of more than 50 million companies by 20 billion yuan. The price of gas for non-residential use has been cut by 0.3 yuan per cubic meter, saving all non-residential natural gas users 7.5 billion yuan. And telecommunication companies have postponed the suspension of mobile services for 1.6 billion users and canceled the suspension of mobile services for 2.9 million medical health workers, as well as others working on the frontline of the fight against the pandemic. They also reduced charges of broadband services for micro, small and medium companies, saving those users 15 billion yuan.

Fourth, the costs of pandemic prevention and control efforts have an impact on revenue growth. Centrally administered SOEs in sectors that include coal, power, oil, transportation, grain and telecommunications have spared no effort to guarantee the supply of basic products and services and to expand and switch production to medical supplies. Airline and logistics companies work to guarantee transportation regardless of the costs. Companies in building sectors have taken on the mission of building specialized and makeshift hospitals. Many centrally administered SOEs have also sent out medical teams to Hubei. Since the outbreak, costs of labor, materials and logistics have increased greatly. In the first quarter, for every 100 yuan of business income, the cost that centrally administered SOEs had to pay increased by 2.4 yuan over the previous year.

The operation of centrally administered SOEs during the first quarter was influenced by multiple factors. The plunge in revenues is the price we have to pay for the COVID-19 prevention and control work. Compared to people's lives and health, it is worth paying the price. And the loss is temporary, and it can be mitigated through effective measures.

I need to point out that economic development is coming back to the track of sound development, and centrally administered SOEs have fared better as they are revving up work resumption. For example, during the first quarter, the output of crude oil and coal in centrally administered SOEs maintained positive growth. The value of newly signed contracts by construction enterprises increased by 3.7% over the previous year, with the value of contracts signed overseas growing by 18%. In March, the total power output of thermal power plants and the volume of goods transported by water transportation companies have recovered to the level seen in the same period of last year. Since April, in particular, the average daily sales of crude oil and steel are basically at last year's levels. And electricity consumption is above the level seen in the same period of last year. SASAC and centrally administered SOEs will work together and take effective measures to overcome difficulties, and they will make a big push to recover losses.

CRI:

We have learned that central enterprises have made notable progress with respect to adopting scientific and technological approaches that help in the fight against the virus. Would you please elaborate on how that happens and what achievements have been made? Thank you.

Peng Huagang:

Thank you for your question. We will give the floor to Mr. Xia Qingfeng to answer your question.

Xia Qingfeng:

Notable progress has been made by central enterprises to help with anti-virus efforts. These enterprises have used scientific and technological advantages, such as big data, artificial intelligence, cloud computing and 5G, for anti-virus efforts since the outbreak of the pandemic.

First and foremost, big data has been adopted to bolster joint epidemic control and prevention efforts. Giving full play to big data, characterized by multiple sources, substantial resources and great inclusiveness, the central enterprises have rolled out a multitude of services that buttress decisions made directly in line with epidemic control and prevention efforts as well as on resumption of work and production efforts. For instance, "Smooth Mobility Online", a big data service developed by China Electronics Technology Group Corporation (CETC), has been working on prevention and resumption. As of April 17, the service for this program that detects when people make close contact with confirmed cases had been used over 446 million times. More than 160,000 people were detected as close contacts after consulting the program. In addition, China Unicom has also launched several big data products, such as a forecast of potential risks among communities and a health U code that provides free access to the entire society for making inquiries about epidemic prevention, risk warning, outdoor safety and resumption of work.

Second, major breakthroughs have been made since we increased our efforts to beef up the development of medical sciences. The central medical and pharmaceutical enterprises have made numerous breakthroughs, regarding nucleic acid tests, vaccine development, research and production of medical equipment. These breakthroughs, which from the start have responded to pressing situations, occurred over a short period. For example, the inactivated vaccine developed by the China National Biotech Group Co Ltd (CNBG), which is affiliated with China National Pharmaceutical Group Co Ltd (SINOPHARM), has already entered the clinical experiment phase. In addition, some enterprises have expedited research and production of medical equipment. Take China Aerospace Science and Industry Corporation (CASIC) for example, besides developing high-performance ventilators for severe cases that are used in Intensive Care Units, it has also worked on negative pressure modules that are applied in shelter hospitals. 

Third, the development of new industries should accelerate with digital support. The central enterprises have made full use of internet connections around-the-clock to assist remote education, home-based work and business performances. The telecommunication enterprises have, therefore, enabled online education to reach over 100 million users. They also provide office services, such as video conferences and wireless communication, to more than 7.7 million administrative bodies and market entities. These services can be used free of charge for more than 4,000 minutes. The virtual platform established at China Petrochemical Corporation (Sinopec) has ensured smooth operation and production during the epidemic by providing expert support, online management and dynamic monitoring for fieldwork, which includes petroleum exploration, refining and transporting.

Xia Qingfeng:

Fourth, advanced technology products have been adopted to support anti-epidemic efforts. Sterilization with radiation exposure provided by China National Nuclear Corporation and China General Nuclear Power Group has substantially prolonged effective periods of sterilizers. The chip developed by China Electronics Corporation has enabled the full production of body temperature test kits. The highly-efficient glass fiber filter paper produced by China National Building Material Company Ltd has been involved in the construction of Huoshenshan and Leishenshan Hospitals in Wuhan, which is the capital of Hubei province; this paper, which is able to filter out 99.97% of the granules estimated a t 0.3 micrometers, can help ward off airborne coronavirus aerosol particles.

Fifth, production with artificial intelligence should be applied to support automatic manufacturing and remote medical treatments. Central enterprises, which have made full use of 5G, the Internet of Things, the Industrial Internet and artificial intelligence technologies, have undertaken the construction of automatic workshops and smart factories to upgrade intelligent production and reduce the size of the on-site labor force. The 5G-based intelligent equipment, including robots for medical services, emergency ambulances, driverless cargo vans and epidemic control vehicles, developed by China Mobile have reached 3,900 medical institutes and supported more than 30,000 remote group diagnoses.

As we always say, opportunities often arise amid challenges. Therefore, the State-owned Assets Supervision and Administration Commission of the State Council will direct central enterprises to effectively make use of experiences, research and development progress and industrial advancements that arose during this epidemic. We will step up our efforts to work on a well-designed layout of emerging industries that includes the Internet of Things, the Industrial Internet, cloud computing, big data and artificial intelligence. Our involvement in life sciences, remote medical treatments, medicines and healthcare services should be much expanded. The integration of modern information technologies, including the internet and big data, into traditional manufacturing industries should be enhanced in an effort to help manufacturers transform and upgrade. Thank you.

Xinhua Daily:

What measures will the SASAC and enterprises directly under the central government take to cope with the impact of the COVID-19 pandemic? Also, for Mr. Peng, how do you think enterprises directly under the central government will perform in 2020? Will these annual indicators be adjusted? Thank you.

Peng Huagang:

Thank you for your question. Regarding the difficulties and challenges brought about by the COVID-19 pandemic, both the SASAC and enterprises directly under the central government are actively conducting relevant research in order to mitigate the loss accordingly. The CPC Central Committee has made some important deployments in this regard. Earlier on April 16, the Political Bureau of the CPC Central Committee held a meeting to analyze the current economic situation and make arrangements for economic works. In order to implement the decisions and requirements being made by the CPC Central Committee, the SASAC held a video conference on April 17 based on our existing investigation, which systematically made arrangements for our work in the next step. In general, we have put forward three major requirements: First, we need to face the challenges and mitigate the losses brought about by the COVID-19 pandemic to the greatest extent possible. Second, we need to proceed with confidence and work diligently. Third, we need to shoulder our responsibilities and work to bring about the continuous and healthy growth of the national economy.

The SASAC and enterprises directly under the central government will continue to remain "battle ready." While dynamically optimizing measures for pandemic prevention and control as well as improving the effectiveness of our work, we will also be fully committed to preventing a slowdown and achieving steady growth. The specific measures are as follows:

First, we will spare no effort to expand the market. We will develop and further expand the domestic market while also speeding up the construction and production of existing projects and orders. This will help to avoid late deliveries, loss of customers, and breaches of contracts. We need to seize the growth opportunity presented by the recovery period that will follow the pandemic subsides, and work in accordance with the national strategy for boosting domestic demand. We should work to meet local demands concerning investment and construction in order to effectively mitigate losses resulting from the COVID-19 pandemic. We will also pay attention to world-wide business operations and work to implement major BRI projects through specific and targeted measures for each company in different countries. This will ensure normal business operations for the overseas project as well as the timely delivery of orders. We will support enterprises directly under the central government to further cooperate with enterprises of other ownership and learn from each other in terms of investment and shareholding, product cooperation, R&D collaboration and experience sharing. Enterprises directly under the central government should also lead SMEs so as to achieve mutual development. 

Peng Huagang:

Second, we need to adopt the multi-layered measures and explore the potential of development in relevant sectors. We will step up efforts to reduce costs and improve efficiency, applying cost management to all staff, factor and business procedures. The cost of business operation will be greatly reduced, especially in terms of management and techniques. We will make more efforts to deal with inefficient and invalid assets. We will quickly divest in businesses that lack competitive advantages and development potential. We will speed up the liquidation of inefficient and invalid stock equity. We will also step up efforts to manage unprofitable companies. Based on our concluding work of helping "zombie companies and troubled businesses," we should further work on the management of unprofitable listed companies as well as relevant major branch companies, sparing no effort to reduce losses.

Third, we will speed up industrial upgrades and shore up weaknesses. Regarding problems emerging amid pandemic, we need to speed up industrial transformation and upgrades while also optimizing product services in order to build up strengths and shore up weaknesses. In terms of the development of core technologies, we need to focus on cutting-edge fields, such as biosciences and healthcare, stepping up the R&D efforts accordingly. As for the optimization of the industrial structure, industries involved with healthcare, public epidemic prevention and control and emergency management should be further developed. Emerging industries, such as cloud computing, big data and AI, should also be supported so as to develop a new engine. Regarding smart transformations and upgrades, we should make full use of the advantages of enterprises directly under the central government and let them become the main driving force for new infrastructure. New forms of business, such as the digital economy, will be supported, and traditional industries will be transformed at an accelerated pace. 

Fourth, we will step up reform efforts. In accordance with the requirements of the upcoming three-year action plan on the reform of state-owned enterprises, we will carry out proactive, bold and pragmatic reform, introducing relevant measures to improve the vitality and efficiency of enterprises, which will help us to cope with the effects of the pandemic.

Fifth, we need to prevent the risks and stick to the bottom line. We need to stay conscious about the bottom line and strengthen risk management. We need to pay close attention to capital risks and properly prevent and control debt risks. In the meantime, risks associated with financial businesses should be kept under control, and risks associated with investment should always be prevented. Compliance risks should be controlled strictly, and we need to stick to the bottom line and prevent the occurrence of major risks.

The SASAC and enterprises directly under the central government will stick to these targets, making full use of all the resources available and overcoming difficulties in order to make up for losses to the greatest extent while also achieve the best possible results. Thank you.

China Business Network:

When will the three-year action plan on the reform of state-owned enterprises (SOEs) be launched? Could you share the general guidelines and key tasks of the reform? What breakthroughs will be made in the reforms of mixed SOE ownership, SOE restructuring and the supervision mechanism of state-owned assets in the year 2020, the first year of the action plan? Thank you. 

Peng Huagang: 

Thank you for your question. This is also a matter of public concern. The action plan has preliminarily taken shape over a period of time that has included plenty of research, repeated evaluation and improvement. It now comes into the approval process. It is highly valued by the CPC Central Committee and the State Council as a pressing issue of high urgency. When it is launched, we will give a systematic and comprehensive introduction to the plan. 

As for your question, the overall consideration of the plan is to better implementing General Secretary Xi Jinping's major expositions on SOE reform and, development of state-owned assets and enterprises, as well as a Party building. This involves three important issues: First, the requirements of the 19th National Congress of the Communist Party of China on SOE reform will be further specified and carried out in the three-year actions. Second, a number of SOE reform policies, namely the "1+N" policies, have been implemented in recent years. For those not put in place, we have made a schedule and a roadmap to accelerate the implementation. Third, we have gained some experience at the grassroots level in recent years from pilot and demonstration projects, including "Ten Pilot Reforms" and "Double Hundred Actions." The experience will be promoted in the next step of SOE reform.

In fact, these considerations and requirements will be fully reflected in the action plan, even though it has not yet been released. Nevertheless, the actions have started this year, which is the first year to implement the three-year action plan. We have laid out some of our priorities for reform this year, and we have advanced them actively, which embodies the requirements of the three-year action plan. This year's reform will focus on the following aspects:

First, we will improve the modern enterprise system with Chinese characteristics. We will implement the "two policies of consistency" to encourage the establishment of a board of directors, as needed. We will further clarify the boundaries of rights and responsibilities of Party committees (leading Party groups), boards of directors, managers and other governance bodies to implement the functions and powers of the board of directors and accelerate the establishment of a corporate governance mechanism in which one will do their part while cooperating with others to have effective checks and balances. 

Peng Huagang:

Second, we will accelerate the establishment and improvement of a market-based operation mechanism. We will advance the contract management of management members' tenures and the establishment of a professional managers system, and we will encourage SOEs to actively coordinate the use of medium- and long-term incentive policies to increase their vitality and efficiency. 

Third, we will actively, yet prudently, deepen the reform of introducing mixed ownership to SOEs of different levels and categories. In particular, we will promote an in-depth transformation of operating mechanisms in mixed-ownership enterprises and give full play to the positive role of the shareholders of non-state-owned enterprises.

Fourth, we will improve the distribution of state-owned assets and promote strategic restructuring and specialized integration to guide enterprises in further focusing on the real economy and strengthening their core business. The SOEs, in particular, will be given their guiding role in structural improvement, free circulation and stable growth in a bid to offset the negative impacts of the pandemic.

Fifth, we will improve the state-owned assets supervision system, with a focus on the management of capital. We will delegate more powers in order to have state-owned assets play an effective role in investment and company operation.

Sixth, we will push forward special projects, including the "Double Hundred Actions" and "Comprehensive Regional Reform Tests," as well as "Demonstrative Actions on Reforms of Technology-Based Enterprises," to give full play to their demonstrative and leading roles.

Seventh, we will further strengthen the Party's overall leadership with respect to SOEs. We will boost the Party building in SOEs and give a leading role to entrepreneurs so they may lead the development of SOEs with high-quality Party building. Thank you. 

Macao Daily News:

Recently, there have been more discussions about China's manufacturing industry, and some countries said they would spare no expense to subsidize costs, encouraging their enterprises to move manufacturing back to their countries and calling for the return of the industrial chain. At the same time, due to the shutdown of foreign factories, some enterprises lack production components. Are central SOEs prepared to respond to new situations in the industrial chain and supply chain? Thank you.

Peng Huagang:

Thank you for your question. Mr. Xia will answer it.

Xia Qingfeng:

Indeed, as the reporter just said, there are increasing discussions on the manufacturing industry happening in society, and there are also many voices being heard in the international community. We believe that the global economy is a whole entity. The industrial chains and supply chains of various countries are interlinked, and after more than 40 years of reform and opening-up, China's economy has been deeply integrated into the global industrial chain and supply chain. Due to the impact of COVID-19, all countries in the world are tightening their prevention and control measures, and the smooth and orderly operation of the global industrial chain and supply chain has been affected to varying degrees. Central SOEs have also encountered the delay of existing contracts, decrease of new orders and risks in the supply of some required raw materials and spare parts. As for the question of how to deal with the impact of the pandemic on the industrial chain and supply chain, our opinions are as follows: 

On the one hand, we must continue to give full play to the role of the global industrial chain. At present, the overall pattern of the global industrial chain and supply chain is the result of years of joint efforts and common choice made by the enterprises of various countries. It is the result of the function of comprehensive factors, such as factor costs, industrial support and the infrastructures of various economies. It is not formed overnight, nor can it be changed by any individuals or countries at will. We believe that short-term subsidies cannot stop the long-term market trend. There is an old Chinese saying that "it is important to take a long-term perspective," and we will encourage central SOEs to continue strengthening cooperation in the global industrial chain. On the other hand, we must make full use of the advantages of the domestic industrial chain. Central SOEs have a relatively complete industrial system, and they have certain development resilience, potential and room to maneuver. Since the outbreak, central SOEs have spared no effort to ensure stable production and supplies, protect people's livelihoods and stabilize the market, and they have taken the lead in resuming work and production. Now, 99.4% of central SOEs have resumed work and production. In doing so, they have driven medium, small and micro-sized enterprises in the upstream and downstream of the industrial chain to reboot engines. We also took the lead in implementing the national policy requirements for tax and fee reductions, along with rent exemption or reduction. In the first quarter, costs of various market entities were reduced by 45 billion yuan. It should be said that through this concession, a healthy industrial chain ecology and a sound economic ecology have been created.

Xia Qingfeng:

Manufacturing is considered the backbone of our national economy. Central SOEs will strive to play the leading role in their respective industries and continue to work in the following three aspects, centered around the goal of ensuring every link of the industrial chain and the supply chain are in place, coordinating upstream and downstream sectors and stabilizing the industrial chain.

First, we will deepen the cooperation between upstream and downstream sectors of the industrial chain. We encourage and support central SOEs, working on market-oriented and commerce-oriented principles, to build a batch of supply and demand sharing platforms or industry resources sharing platforms that deepen cooperation among central SOEs in fields such as logistics, freight, coal and electricity price linkage. Combining national strategies and major regional development strategies, the SOEs will deeply participate in major local projects, major sectors in the distribution of productive forces and the construction of key industrial clusters so as to strengthen central and local coordination. Central SOEs will also increase cooperation with other enterprises that have ownership in the industrial chain and supply chain, and they will learn from each other in investment and equity participation, product cooperation and research and development. In these ways, we can jointly improve the stability of the industrial chain and the supply chain, rendering the industrial system more complete in range.

Second, we will speed up upgrading the industrial chain so as to make up for shortcomings. To address some of the problems exposed in the supply chain and industrial chain during the pandemic, central SOEs will accelerate transforming and upgrading these structures so as to compensate for shortcomings, close up loopholes and shore up points of weakness. In particular, the enterprises will utilize their strengths to carry out scientific and technological research and make new breakthroughs in weak fields and key areas of the industry chain. We encourage the SOEs to make good use of policies, such as the Guidelines on Promoting the Demonstration and Application of Newly-Developed Major Technological Equipment, to advance the development of locally-built key equipment. We will steadily complete mergers and acquisitions that are conducive to industrial collaboration, technology introduction, talent sharing, increasing brand value, etc., and we will strive to enhance the competitiveness and resilience of the industrial chain.

Third, we will deepen international cooperation in a more open attitude. According to statistics, over the past three years, central SOEs have invested more than 300 billion yuan overseas each year for such projects as infrastructure construction, energy resource cooperative development, capacity cooperation, technological research and development, engineering and equity investments. Central SOEs are said to have been deeply integrated into international cooperation. Upholding the concept of jointly building a community with a shared future for mankind, as proposed by General Secretary Xi Jinping, and guiding by the principle of consultation, collaboration and benefits for all, we will continue to promote business going global, keep broadening the "circle of friends," and strengthen long-term and stable cooperative relations. We will deepen international production capacity cooperation with companies from all over the world and jointly contribute to the recovery and development of the global industrial chain and supply chain. Thank you.

Xi Yanchun:

We know that central SOEs have made important contributions to epidemic prevention and control efforts. Some of the work they've done has been covered by the media, but most of their work is still unknown to the public. Therefore, I would like to take this opportunity to thank all the central SOEs that have made important contributions to the prevention and control of the pandemic. We believe that central SOEs will continue to play an important role in China's economic development. Thanks again to the two speakers, and thank you all. Today's press conference is concluded.

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Read in Chinese

Speaker:

Wang Chunying, spokesperson and chief economist of the State Administration of Foreign Exchange (SAFE) and director general of the Balance of Payments Department at the SAFE

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office

Date:

April 17, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media, welcome to this press conference held by the State Council Information Office (SCIO). Today, we are delighted to invite Ms. Wang Chunying, spokesperson and chief economist of the State Administration of Foreign Exchange (SAFE), as well as director general of the administration's Balance of Payments Department. She will introduce China's foreign exchange receipts and payments in the first quarter of 2020 and also answer some of your questions.

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

Wang Chunying:

Good afternoon. Welcome to this press conference. I'll first introduce China's foreign exchange receipts and payments in the first quarter of 2020, and then I will answer some of your questions.

In the first quarter of 2020, the outbreak and spread of COVID-19 presented a major uncertainty for economic and financial performance at home and abroad. As the pandemic continues to rage around the world, downward pressure on the global economy is rising, and international financial markets have shown dramatic turbulence. 

Currently, the situation in China is continuously improving, with resumption of work and production on the fast track and economic and social activities in steady progress. Since the beginning of this year, the RMB exchange rate remained basically stable amid two-way fluctuations, and market expectations were relatively stable. China's cross-border financial flows remained generally stable, and overall balance was achieved between demand and supply in the foreign exchange market.

In the first quarter of 2020, foreign currency bought and sold by Chinese banks totaled 3.43 trillion yuan ($491.5 billion) and 3.16 trillion yuan, respectively, creating a surplus of 273 billion yuan. 

Foreign-related receipts and payments by banks on behalf of clients were worth 6.39 trillion yuan and 6.61 trillion yuan, respectively, with a deficit of 216.5 billion yuan.

China's foreign exchange receipts and payments showed the following characteristics in the first quarter of 2020:

First, overall balance was achieved between demand and supply in the foreign exchange market. In the first quarter, the surplus of foreign exchange settlement and sales by banks was $39.1 billion. If comprehensive consideration is given to factors that include forward transactions and options, the supply and demand of foreign exchange in China have reached a state of basic balance. Over the same period, foreign-related receipts and payments of foreign exchange by banks on behalf of clients produced a surplus of $1.7 billion.

Second, although foreign-related receipts and payments by banks on behalf of clients showed a deficit in March, foreign exchange settlement and sales by banks remained in surplus. Since April, overall balance has been achieved in foreign-related receipts and payments by banks on behalf of clients, as well as in foreign exchange settlement and sales. In March, the virus spread around the world, sparking more violent fluctuations in the international financial market and a plunge in major stock indexes. As a result, risk aversion was on the rise and external liquidity tightened. In this context, foreign-related receipts and payments by banks on behalf of clients showed a deficit, mainly because RMB cross-border net outflow under security investment increased. Meanwhile, the domestic foreign exchange market remained basically stable; foreign exchange settlement and sales by banks stayed in surplus; and overall balance was achieved between demand and supply in the foreign exchange market. In terms of daily data, since the beginning of April, foreign-related receipts and payments by banks on behalf of clients struck a basic balance, and foreign exchange settlement and sales by banks continued to be in minor surplus.

Third, the rate of foreign exchange buying dropped, and the forex financing of enterprises stayed generally stable. In the first quarter, the rate of foreign exchange buying, which means the ratio of clients buying foreign exchange from banks to the overseas expenditure of foreign exchange, stood at 63%, down two percentage points compared to the same period of last year. Meanwhile, the forex financing of enterprises remained stable. At the end of March, Chinese banks' forex loans at home rose by $27.7 billion. Import foreign currency and cross-border financing, such as refinancing and forward letters of credit, fell by $8 billion compared to the end of 2019, corresponding with fluctuations in the import volume of the same period.

Fourth, the rate of foreign exchange selling grew steadily, and market players showed a steady willingness to hold foreign currency. In the first quarter, the rate of foreign exchange selling, which means the ratio of clients selling foreign exchange to banks to clients receiving foreign exchange from overseas, stood at 66%, up five percentage points compared to the same period of last year. At the end of March, forex deposits of enterprises and individuals at home dropped by $6.7 billion compared to the end of 2019, remaining basically stable.

Fifth, Chinese banks maintained a forward forex settlement surplus. In the first quarter, Chinese banks reported a forward forex settlement surplus of $41.4 billion, including a surplus of $16.6 billion in March.

Sixth, China's foreign exchange reserves remained generally stable. By the end of the first quarter in 2020, the foreign exchange reserves stood at $3.06 trillion, down 1.5% compared to the beginning of this year, affected mainly by factors that include exchange rate conversion and assets price fluctuations.

These are the main Q1 forex data that I want to share with you. Now, I would like to answer questions about China's foreign exchange reserves.

Xi Yanchun:

Thanks for Mrs. Wang's introduction. Now it's time for questions. Please indicate the news organization you work for before raising your questions.

CCTV:

What do you think of the performance of the country's forex market amid the COVID-19 pandemic？What do you make of the development trend? Thanks!

Wang Chunying:

This year, the whole world faces a new situation: the COVID-19 pandemic. Both the global economic and trade activities and the international monetary market have recently been hit hard by the pandemic. Under these extreme circumstances, China's forex market has maintained overall stability, which I think is incredible. This attests to the increasing maturity of China's forex market and the growing rationality of market entities. This also attests to the market entities' confidence in China's pandemic prevention and control and the fundamentals of the Chinese economy.

In 2020, China's forex market has achieved "three keeps." First, we have kept supply and demand in balance in the forex market. Second, we have kept the yuan exchange rate relatively stable against a basket of major currencies in the world. Third, we have maintained cross-border investment and financing and forex trading in a basically sound and orderly manner. On top of that, China's foreign exchange reserves have stayed stable overall.

Let's look at the first "keep": we have kept forex supply and demand in balance. The above-mentioned data show that Chinese banks reported a relatively large forex settlement surplus of $39.1 billion, laying the basis for the balanced supply and demand in the forex market. A data breakdown shows that there is a cross-border forex surplus of $1.7 billion, and there is a net forex settlement surplus of $20.5 billion. In a word, either from the overall perspective or from the perspective of the clients, we have kept in balance the Q1 supply and demand in the forex market. The second "keep" is that we have kept the yuan exchange rate relatively stable against an array of major currencies in the world. In the first quarter, the U.S. Dollar Index rose by 2.8%. Under such a circumstance, the spot exchange rate of RMB/USD dropped slightly by 1.8%. In terms of other currencies, the currency index of the emerging markets dropped by 12.9% during the same period. The pound dropped by 6.3% against the dollar; the EUR/USD dropped by 1.6%. In the first quarter, the CFETS RMB Index rose by 2.9%. Therefore, we can conclude from the data that we have kept the yuan exchange rate relatively stable against the major currencies of the world.

Third, the behavior of market entities has remained rational and orderly, which can be seen from two perspectives. First, foreign investors' enthusiasm remains high when it comes to investing in China. According to statistics from the Ministry of Commerce, China's actual use of foreign capital in the first quarter was $31.2 billion, with a 15.5% increase in the high-tech service sector. According to statistics from the SAFE, the net increase of foreign investors' holdings of domestic bonds in the first quarter increased by 48% year-on-year, reaching $16.7 billion. Second, Chinese enterprises' outbound direct investment has been stable. According to data provided by the Ministry of Commerce, the outbound direct investment of non-financial sectors between January and February was $15.5 billion, which shows stability. Moreover, according to the SAFE data, net purchases of foreign exchange from individuals in the first quarter dropped by 25% year-on-year, reflecting individuals' rational willingness to purchase foreign exchange. Therefore, foreign exchange reserves have remained basically stable. 

The fundamentals of China's sound economic growth in the long term will ensure the stable operation of the foreign exchange market. First, the positive development of China's pandemic prevention and control measures will continue to leverage the role of stabilizing expectations and boosting market confidence. The pandemic and its implications for economic growth and societal development have been the major uncertainties for the world economy and financial markets. China is consolidating its progress in pandemic prevention and control, and resumption of production and work is ongoing. The restoration of economic and social orders has been accelerating as well, which will not only shore up confidence in the domestic market but also boost world economic development. Second, the fundamental trends of China's sound economic growth in the long term and deepened opening-up remain unchanged, which will continue to attract foreign mediums and long-term capital to invest in the domestic market. Third, the foreign exchange market is becoming more mature, and foreign exchange rates are getting more flexible. More and more "two-way volatility" of foreign exchange rates have been seen, and the performance of foreign exchange rates in regulating the macro economy and serving as an automatic stabilizer for the balance of international payments is becoming better and better. Consequently, China's foreign exchange market is mature enough to absorb and address short-term impacts, and it is capable of maintaining stable operation in the future.

Of course, in this process, we will continue to strengthen monitoring and analysis to prepare for different scenarios. We always take preventive measures, which is actually a guarantee for the smooth operation of the market. This is my response to your question. Thank you.

Economic Daily:

The SAFE has always stressed the importance of the current account. What impacts will the COVID-19 pandemic have on the current account in the balance of international payments? Is it possible to see a sustained current account deficit? Thank you. 

Wang Chunying:

The pandemic does have some impacts on China's current account of the balance of payments, and we have been conducting the following analysis on this issue. Based on the current situation, we have made some preliminary estimates of impacts that the pandemic will have on China's balance of international payments.  

First, China's current account development has been affected by the pandemic, but it will remain basically balanced in the first quarter. According to data from Customs, exports dropped by 13% in the first quarter, and imports declined by 3%. However, the decline of exports in March has slowed down, so the trade surplus in the first quarter has narrowed. In terms of services trade, according to SAFE statistics, China's deficit narrowed by 25% in January and February with a sharp dip in tourism expenditure. According to preliminary statistics, tourism expenditure remained low in March, which indicates that the services trade deficit has narrowed. China's balance of international payments is mainly composed of cargoes trade and services trade. Due to its low income and current transfers, we must analyze the development of the current account, with the analysis of cargoes trade and services trade being our priorities. China's cargoes trade surplus and services trade deficit narrowed simultaneously in the first quarter; therefore, the current account will most likely remain stable within a reasonable range.  

The second fundamental judgment is that the outbreak will not affect China's current account in the medium to long term. The pandemic develops and changes according to its own underlying rules. As scientists, biologists and pharmacologists make knowledge gains, R&D progresses, methods grow and we accrue experience, the pandemic will be effectively curbed, and the global economy and trade will gradually recover, thus easing external demand difficulties. Domestically, coordination between epidemic prevention and control and economic and social development is proceeding in an active way. According to statistics by the Ministry of Industry and Information Technology (MIIT), the work resumption rate of industrial enterprises above the designated scale had exceeded 99% by mid-April, with a 94% rate of personnel returning to their posts. With the resumption of work and production gearing up, domestic supply and demand have been secured on the one hand, and supplies for the foreign market have been secured on the other hand. Therefore, we think the outbreak will not affect the current account in the medium to long term.

The third judgment, which I mention each time, is that the defining factor affecting the current account is the domestic economic structure and other underlying and long-term factors that cannot be altered easily. First, China's manufacturing is hefty and has complete sectors, so it has a strong resilience and an ability to cope with pressure. In recent years, China has insisted on the supply-side structural reform, its industrial chains keep upgrading and manufacturing has been more competitive. Second, the domestic economic structure has constantly improved, and investment has been more efficient. Despite a drop in recent years, China's savings rate is still relatively high compared with the international level. In theory, the gap between savings and investment dictates the current account, and in this perspective, China's international current account positions can be kept basically balanced.

The current account has been kept within a balanced range. Affected by some short-term uncertain factors, it sometimes may run a small deficit or a small surplus, but it is still within a basic balance. For example, the current account surplus in 2018 fell to $25.5 billion, during which it ran a deficit for the first two quarters and then reversed to a surplus in the third quarter. The surplus later widened to $141.3 billion in 2019. However, this did not change the fact that China's current account is basically been kept balanced. Thank you.

Bloomberg News:

In March, bank foreign-related receipts and payments for customers recorded their largest deficit since January 2016. What are the main reasons causing this? How about the balance of international payments in the first quarter?

Wang Chunying:

I see you are concerned about the cross-border balance of payments in March. I have a set of data to share with you. In March, the surplus of bank foreign exchange settlements stood at $18.6 billion. The deficit of cross-border payments was $47.7 billion, which was mainly due to the net outflow of RMB. We have conducted comparative analysis and concluded that capital outflow from securities investment is the main cause of this. In March, there were net outflows of cross-border funds under the category of equities and continued net inflows under the category of bonds. However, despite the net outflow of capital in the stock market during March, capital involved in northbound trading and money invested from Hong Kong into the Chinese mainland returned to a state of net inflow, and net outflow of capital through southbound trading has also gradually stabilized. There was no sustained, one-way outflow of capital from the stock market. In fact, fluctuations of cross-border capital in the stock market under external shocks are normal reactions of the market, and changes in relative size are also within a reasonable range.

For the current account structure of the balance of international payments in the first quarter that you are concerned about, the relevant data is yet to be released and some data sources are not yet available. The data just reported are estimates based on large projects. Overall, trade in goods will still present a certain surplus, but the size of the surplus will shrink; the size of the deficit of service trade has also narrowed. The final situation will be determined once the data is compiled. The probability is that the current account balance will continue to run within a reasonable equilibrium range. Even if there is a deficit, it will not be large. There was a deficit of $40.3 billion of current account in the first quarter of 2018 and $900 million in the second quarter. Compared with the scale of international payments, the deficits will not trigger directional changes and large-scale cross-border capital outflows. The ratio of current account surplus to GDP has been basically within 2% in recent years and is now stable at around 1%, which is more balanced. Thank you. 

People's Daily Overseas Edition:

Foreign-related businesses have been greatly impacted due to the outbreak of the pandemic. What kind of measures has SAFE taken to support the resumption of work and production for enterprises? What is the current effect of such measures? Thank you. 

Wang Chunying:

Thank you for the questions. These are questions that enterprises care about. SAFE has implemented the decisions and arrangements of the CPC Central Committee and the State Council, and it took effective measures that provided great support for pandemic prevention and control as well as the resumption of work and production at enterprises. Those measures can be summarized in the following aspects:

First, it opened a "green channel" for foreign exchange business to provide support for the resumption of work and production. For example, the procedures of import payment and collection of export proceeds related to pandemic prevention materials have been simplified, and financing business related to pandemic prevention and control has been further streamlined. Meanwhile, for enterprises that are in need, quotas for borrowing foreign debts can be abolished and they can apply for registration of foreign debts online. We are also ensuring the normal use of foreign exchange by individuals and enterprises while also encouraging online foreign exchange transactions. We provide support and guidance to China Foreign Exchange Trade System and Shanghai Clearing House in reducing or exempting fees for foreign exchange transactions and clearing procedures of relevant institutions in Hubei province. From Jan. 27 to March 31, the proportion of foreign debt handled online nationwide reached 93%, compared with 61% in 2019. 

Second, we will continuously strengthen the reform and opening up of the foreign exchange sector and facilitate cross-border trade and investment. The SAFE launched 12 facilitation measures in October 2019 and raised the macro-prudential adjustment parameters for full-caliber cross-border financing in March 2020 so that companies have more freedom in acquiring foreign debts and using overseas funds. On April 14, it introduced eight other facilitation measures to streamline the foreign exchange business. In general, these facilitation measures focus on three aspects. One is to help stabilize foreign trade. The measures mainly include expanding the pilot program of facilitating foreign exchange receipts and payments in trade, facilitating foreign exchange settlement in cross-border e-commerce, and improving the reporting methods of foreign exchange business in the trading of goods. The second is to help facilitate cross-border financing. The moves include popularizing the reform to facilitate the payments of capital account income nationwide, expanding the pilot program of facilitating foreign debts to support cross-border financing of high-tech companies, and reforming the registration and administration of foreign debts of companies. The third is to improve services for the foreign exchange business. The measures mainly include facilitating the use of electronic documents in the foreign exchange business. These measures can significantly reduce the time and labor costs of companies. For example, the pilot measures for facilitating foreign exchange receipts and payments in trade saved over 50% of the time of related enterprises.

Third, we will actively use the cross-border financial blockchain service platform and other technological means to facilitate the financing of small and medium-sized enterprises (SMEs) for trade. As of April 7, nearly 3,000 companies had obtained $22.7 billion of loans through accounts receivable financing over the platform, over 75% of which were SMEs.

In the next step, we will further sort out the facilitation measures that can be introduced to help companies resume work and production as well as carry out cross-border trade, investment, and financing activities. At the same time, we will adhere to active, gradual, and controllable opening up, which means that relevant policies will not go backward. In addition, we will also actively prevent risks as we always do.

CNBC:

First, what are the trends and prospects of foreign capital inflows into China? Second, foreign investors often worry about money withdrawal when considering an increasing investment in China. Does the SAFE provide specific guarantees for that? Thank you.

Wang Chunying:

I see that one of your questions is about the recent changes and prospects of foreign investments in China, and the other is about concerns over investment withdrawal.

How has foreign investment in China changed amid the outbreak? First, medium- and long-term foreign investment, such as foreign direct investment and bond investment for the purpose of allocating medium- and long-term RMB assets, kept flowing in. On the one hand, foreign direct investment remained generally stable and well structured. According to the statistics of the Ministry of Commerce, the actual use of foreign investment by the non-financial sector in the first quarter of 2020 was $31.2 billion. Though on a year-on-year decrease, the use of foreign investment in the high-tech service sector grew rapidly, indicating that foreign investors saw the opportunities along with the transformation of the Chinese economic structure. On the other hand, bond investment for the purpose of allocating medium- and long-term RMB assets increased. Foreign investors held $16.7 billion more Chinese bonds in the first quarter in the net figure, an increase of 48%. Second, foreign investment in the stock market fluctuated slightly within a short period and a reasonable range under external shocks. There was a fall in global stock markets in general and a rise of risk-aversion emotions in the first quarter. Therefore, it is normal for some foreign investors to have reduced their investment in the stock market under the tight liquidity of the U.S. dollar. Foreign investors held around $10 billion less Chinese stocks in the first quarter in net figure, with a relatively more decrease in March compared with the other two months. The market value of the Chinese stock market ranks second in the world and registers around $7-8 trillion, among which the 10 billion accounts for a very small proportion and has had minimal influence. At the same time, the capital flow in the stock market fluctuated in both directions, which showed that the decrease did not last. The northbound investment to Chinese mainland through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect showed net outflows in mid-March and turned into net inflows in late March, so in our view, the investment has changed within a reasonable range.

Where the prospect of investment is concerned, we believe that in the future, Chinese market and RMB assets will still be rather attractive to foreign capital. This is because China's economic fundamentals for long-term growth remain unchanged, and China also has huge potential in its domestic market. Additionally, China has made positive progress in domestic pandemic prevention and control, which greatly contributes to global economic development. Considering direct investment, in the past four years, foreign direct investment (FDI) across the world has seen a continuous decline. Against this backdrop, the scale of foreign investment in China keeps rising, and China remains the world's second-largest country in attracting foreign investment. It shows the long-term strong interest of foreign investors in doing business in China. In terms of investment in bonds, the yields of bonds in China are very high. This is very attractive to investors who allocate RMB assets in the medium and long term. From the perspective of the stock market, the actual valuation of China's stock market is relatively low, and the prospect of value investing is quite promising in China. For example, compared with the rest of the world, the stock market in China is less volatile. In the first quarter, the Dow Jones industrial average was down 23%, whereas the volatility of the Shanghai Composite stayed within 10%. Therefore, China's market remains attractive to foreign investors from the three aspects of direct investment, bond investment, and stock investment. We always welcome foreign investors to invest in China and share in the dividends of China's economic development.

I'd also like to talk about the security of funds, as you mentioned earlier. As a matter of fact, since 1996, China has already realized the convertibility of current accounts. This means that all the incomes and expenses under the current accounts, as long as they are real and compliant, will be processed at banks with the legitimate documents. As for capital accounts, according to the 40 standards of the International Monetary Fund in seven major categories, China already keeps a high level of openness. Also, we have been making efforts on the reform of investment facilitation. As I said just now, our reform efforts are always proactive, progressive and controllable. This means that we will not "go backward." This is why we say that windows will not be closed once opened. Therefore, investors should no longer be worried about this issue.

Hong Kong Economic Herald:

The COVID-19 pandemic has caused liquidity tension of the U.S. dollar, and this problem hasn't been completely solved to this point. As China's balance of foreign debt has exceeded $2 trillion, will there be deleveraging on foreign debt? Thank you.

Wang Chunying:

Based on the current situation, the risk of significant deleveraging on China's foreign debt is relatively small. First, the growth of China's foreign debt has been comparatively stable in recent years. Here are some statistics for your reference. By the end of 2019, the balance of foreign debt reached $2.06 trillion, which was $277.4 billion more than the historical peak figure at the end of 2014. Although the absolute amount has increased, the relative increase of foreign debt is not high when compared to the economic growth in recent years. At the end of 2019, the balance of foreign debt stood at 14.3% of the GDP that year, whereas the ratio at the end of 2014 was 17%. Therefore, this ratio was down by more than two percentage points. In addition, as the foreign debt increased in recent years, China's external assets also rose. Therefore, we have made comparisons regarding the scale of foreign debt and external assets. By the end of 2019, this ratio was 26.7%, which is a decrease of 0.1 percentage point from the end of 2018 and a decrease of one percentage point by the end of 2014. This means that since deleveraging in 2015 and early 2016, the growth of China's foreign debt has been fairly stable. It is consistent with our economic growth, and it also matches China's openness to the rest of the world. In the meantime, during this period, the exchange rate of RMB has remained basically stable and fluctuated in both directions. There is no procyclical leveraging on China's foreign debt; thus, the risk of significant deleveraging in this field is relatively small.

Second, our external debt structure has been further optimized. For example, at the end of 2019, the external debt in domestic currency accounted for 35% of total external debt. This was two percentage points higher than in 2018, and the proportion of medium-and long-term external debt had steadily increased from 35% to 41%. Benefitting from China's interbank bond market, foreign investors purchased more domestic bonds than before, accounting for 26% of the total external debt in late 2019, which was up from 8% in late 2014. The investors have been mainly foreign central banks. These institutions and sovereign wealth funds chose to invest in Chinese bonds out of demand for medium-and long-term allocation of RMB assets. They are inherently stable and are not angling for short-term gains. In addition, China's debt ratio, foreign debt ratio and debt service ratio are all within the internationally recognized safety margins and are much lower than the overall level of developed countries and emerging markets.

We saw external debt deleveraging in 2015 and 2016 when the dollar interest rates and foreign exchange rate rose due to the Federal Reserve's hike of interest rates. Now, with the Fed adopting an easy monetary policy, the short- and long-term interest rates of the U.S. dollar continuing their downwards movement, and the RMB exchange rate remaining generally stable, it is unlikely that a large-scale deleveraging of external debt will reoccur.

Preliminary data from the first quarter shows that our registered external debt steadily increased, foreign investors increased their holding of China's domestic bonds, and there was no evidence of deleveraging. Thank you.

Xi Yanchun:

Thank you again Ms. Wang, Thank you all. Today's press conference is hereby concluded. 

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Read in Chinese

Speaker:

Mao Shengyong, director general of the Department of Comprehensive Statistics at the National Bureau of Statistics (NBS) and NBS spokesperson

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office of China

Date:

April 17, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media: Welcome to this press conference held by the State Council Information Office (SCIO). Today, we will brief you on the national economic performance in the first quarter of 2020. As known to all, the first quarter of this year is a relatively special one, because this is a quarter in which we faced the severe challenge of the COVID-19 pandemic, and it is also a quarter in which we coordinated efforts for pandemic prevention and control and economic and social development. We have invited Mr. Mao Shengyong, a spokesman for the National Bureau of Statistics (NBS), to brief you and take questions from media friends.

I will now give the floor to Mr. Mao.

Mao Shengyong:

Thank you. Ladies and gentlemen, friends from the media, good morning. As usual, I will first share with you the basic information on national economic performance in the first quarter, and then I will answer your questions.

Coordinative efforts for pandemic prevention and control and economic and social development have delivered notable results, and the decline of major economic indicators has been significantly narrowed down in March.

In the first quarter, faced with the severe test of the COVID-19 outbreak, 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, and the whole nation coordinated efforts to advance both the prevention and control of the disease and the economic and social development of the country. As a result, the situation of pandemic control and prevention continued to improve with a basic interruption in virus transmission at home. The resumption of work and production accelerated, with fundamental industries and major products vital to the national economy and people's livelihoods growing steadily. People's basic livelihood was well guaranteed, and national economic and social development reached overall stability. 

According to the preliminary estimates, the gross domestic product (GDP) of China was 20.65 trillion yuan in the first quarter of 2020 — a year-on-year decrease of 6.8% at comparable prices. By industry, the value-added of the primary industry was 1.02 trillion yuan, down by 3.2%; that of the secondary industry was 7.36 trillion yuan, down by 9.6%; and that of the tertiary industry was 12.27 trillion yuan, down by 5.2%. 

First, overall agricultural production was steady and the grain grew well. 

In the first quarter, the value-added of agriculture (crop farming) grew by 3.5% year-on-year. With currently favorable climate conditions in major farming areas, spring plowing and sowing went smoothly, and winter wheat grew better than last year and average years. By the end of March, the sown area of gradeⅠand gradeⅡseedlings of winter wheat accounted for 87.2% of the total, 3.5 percentage points higher than that of the same period last year. In the first quarter, the output of eggs grew by 4.3%, and that of milk grew by 4.6%. The output of pork, beef, mutton and poultry was 18.13 million tons. The pig production capacity continued to recover. By the end of the first quarter, 321.2 million pigs were registered in stock — up by 3.5% over the end of the fourth quarter of 2019 — among which 33.81 million were breeding sows, up by 9.8%. 

Second, industrial production fell while the industry of basic raw materials and high-tech manufacturing continued to increase. 

In the first quarter, the total value-added of the industrial enterprises above the designated size went down by 8.4% year-on-year. Specifically, in March, the total value-added of the industrial enterprises above the designated size went down by 1.1% year-on-year, or 12.4 percentage points slower than the decline of the first two months, while the month-on-month growth was 32.13%, with the industrial output approaching the level of the same period last year. An analysis by types of ownership showed that the value-added of the state holding enterprises dropped by 6% year-on-year; that of share-holding enterprises fell by 8.4%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was down by 14.5%; and that of private enterprises was down by 11.3%. In terms of sectors, the value-added of mining went down by 1.7%, manufacturing fell by 10.2% and the production and supply of electricity, thermal power, gas and water was down by 5.2%. The production of basic raw materials and new products maintained growth. The output of natural gas, non-woven fabrics, chemical medicine materials, crude oil, 10 kinds of nonferrous metal, ethylene and crude steel went up by 9.1%, 6.1%, 4.5%, 2.4%, 2.1%, 1.3% and 1.2%, respectively. The output of automatic vending and ticket machines, electronic components, integrated circuits, urban rail vehicles and solar cells went up by 35.3%, 16.2%, 16.0%, 13.1% and 3.4%, respectively. In March, high-tech manufacturing went up by 8.9% year-on-year, and this includes the manufacturing of computers, communication equipment and other electronic equipment, which collectively went up by 9.9%. The output of industrial robots and power generation equipment went up by 12.9% and 20.0%, respectively. 

Third, service production dropped while the emerging service industry grew.

In the first quarter, the total value-added of the tertiary industry dropped year-on-year, while that of the information transmission, software and information technology services and that of financial intermediation went up by 13.2% and 6.0%, respectively. In March, the Index of Services Production dropped by 9.1%, 3.9 percentage points slower than the decline of the first two months. In the first two months, the business revenue of service enterprises above the designated size dropped by 12.2%; this includes that of internet and related services and that of software and information technology services, which went up by 10.1% and 0.7%, respectively. In March, the Business Activity Index for services was 51.8%, 21.7 percentage points higher than last month. Specifically, the Business Activity Index for transportation, storage and post, retail trades and monetary and financial services was relatively high, reaching 59.3%, 60.6% and 62.9%, respectively. In terms of market expectation, the Business Activities Expectation Index for services was 56.8%, which is 17.1 percentage points higher than last month, showing greater confidence of enterprises in market development.

Fourth, market sales decreased while sales of daily necessities and online retail sales of physical goods grew fast.

In the first quarter, the total retail sales of consumer goods reached 7,858 billion yuan, down by 19.0% year-on-year. In March, the total retail sales of consumer goods reached 2,645 billion yuan, down by 15.8%, a decline narrowed by 4.7 percentage points compared to that of the first two months of the year. The retail sales of goods went down by 12.0%, a decline that has narrowed by 5.6 percentage points compared to that of the first two months of the year. Analyzed by different areas, the retail sales in urban areas in the first quarter reached 6,785.5 billion yuan, down by 19.1%, and the retail sales in rural areas stood at 1,072.5 billion yuan, down by 17.7%. Grouped by consumption patterns, the income of catering was 602.6 billion yuan, down by 44.3%; and the retail sales of goods amounted to 7,255.3 billion yuan, down by 15.8%. Commodities closely related to people's lives witnessed growth. The grain, oil and food, beverages and traditional Chinese and Western medicines produced by businesses above the designated size grew by 12.6%, 4.1% and 2.9%, respectively, or 2.9 percentage points, 1.0 percentage point and 2.7 percentage points higher than the growth in the first two months. Online retail sales reached 2,216.9 billion yuan, down by 0.8% year-on-year. Specifically, the online retail sales of physical goods were 1,853.6 billion yuan, up by 5.9% and 2.9 percentage points higher than that of the first two months of 2020, accounting for 23.6% of the total retail sales of consumer goods, which is 2.1 percentage points higher than that of the first two months.

Fifth, investment growth slowed down while e-commerce, professional technical services and anti-epidemic related industries saw growth.

In the first quarter, the investment in fixed assets (excluding rural households) reached 8,414.5 billion yuan, down by 16.1% year-on-year and 8.4 percentage points slower than the decline of the first two months of 2020. Specifically, the investment in infrastructure, manufacturing and real estate development declined by 19.7%, 25.2% and 7.7%, respectively, which amounts to 10.6 percentage points, 6.3 percentage points and 8.6 percentage points slower than the decline of the first two months of the year. The floor space of commercial buildings sold reached 219.78 million square meters, down by 26.3%, and the total sales of commercial buildings were 2,036.5 billion yuan, down by 24.7%, the decline of which was narrowed by 13.6 percentage points and 11.2 percentage points compared to that of the first two months of the year, respectively. By industry, the investment in the primary industry went down by 13.8%; the secondary industry went down by 21.9%; the tertiary industry fell by 13.5%; and the private investment sector reached 4,780.4 billion yuan, down by 18.8%. The decline was narrowed by 11.8 percentage points, 6.3 percentage points, 9.5 percentage points and 7.6 percentage points, respectively, compared to that of the first two months. Investment in high-tech industry declined by 12.1%, which is 4.0 percentage points slower than that of the total investment. Of the total, the investment in high-tech manufacturing and high-tech services went down by 13.5% and 9.0%, respectively. In terms of high-tech manufacturing, investment in the manufacturing of computers and office equipment grew by 3.2%. In terms of high-tech services, investment in e-commerce services went up by 39.6%, investment in professional technical services went up by 36.7 %, and investment in services for commercialization of research findings rose by 17.4%. Investment in social sectors went down by 8.8%, and investment in the health sector dropped by 0.9%, or 15.2 percentage points slower than the decline of the total investment. Investment in manufacturing of biological medicines, products and other anti-epidemic related industries maintained growth, and construction of key projects for epidemic prevention accelerated. In March, investment in fixed assets (excluding rural households) grew by 6.05% month-on-month.

Sixth, imports and exports of goods slowed down and trade structure continued to optimize.

In the first quarter, the total value of imports and exports of goods was 6,574.2 billion yuan, which is down by 6.4% year-on-year. In March, the total value of imports and exports was 2,445.9 billion yuan, down by 0.8% year-on-year, which is a decline that slowed by 8.7 percentage points compared to that of the first two months of the year. Of the total, the value of exports was 1,292.7 billion yuan, down by 3.5%, and the value of imports was 1,153.2 billion yuan, up by 2.4%, with imports of general trade growing by 4%. In the first quarter, the total value of exports was 3,336.3 billion yuan, down by 11.4%; the total value of imports was 3,238.0 billion yuan, down by 0.7%. The trade balance was 98.3 billion yuan in surplus. The trade structure continued to optimize. The import and export of general trade accounted for 60% of the total value of imports and exports, an increase of 0.4 percentage points compared to the same period last year. In the first quarter, the export delivery value of industrial enterprises above the designated size reached 2,408.2 billion yuan, down by 10.3% year-on-year and 8.8 percentage points slower than the decline of the first two months of 2020. In March, the export delivery value of industrial enterprises above the designated size reached 1,030.7 billion yuan, which is up by 3.1%.

Seventh, the rising of consumer prices declined and producer prices for industrial products saw a larger drop.

In the first quarter, consumer prices went up by 4.9% year-on-year. In March, consumer prices went up by 4.3% year-on-year, 0.9 percentage points lower than in February, or down by 1.2% month-on-month. In the first quarter, prices went up by 4.6% in urban areas and by 5.9% in rural areas. Grouped by commodity categories, prices for food, tobacco and alcohol went up by 14.9% year-on-year; clothing went up by 0.2%; housing went up by 0.2%; articles and services for daily use went up by 0.2%; transportation and communication went down by 1.5%; education, culture and recreation went up by 1.9 %; medical services and health care went up by 2.2%; and other articles and services went up by 4.9%. In terms of food, tobacco and alcohol prices, prices for grain went up by 0.6%; fresh vegetables went up by 9.0% — specifically, their prices went up by 10.9% in February and down by 0.1% in March; pork went up by 122.5% — specifically, its prices went up by 116.4% in March, which is 18.8 percentage points lower than in February. Core CPI, excluding the price of food and energy, went up by 1.3%.

In the first quarter, producer prices for industrial products went down by 0.6% year-on-year. Specifically, prices in March dropped by 1.5% year-on-year, which is 1.1 percentage points faster than the year-on-year decline in February this year, or down by 1.0% month-on-month. In the first quarter, purchasing prices for industrial products went down by 0.8% year-on-year. In March, prices dropped by 1.6% year-on-year, or by 1.1% month-on-month.

Eighth, the surveyed unemployment rate in urban areas dropped slightly while employment was generally stable.

In the first quarter, the newly increased number of employed people in urban areas totaled 2.29 million. In March, the surveyed unemployment rate in urban areas was 5.9%, 0.3 percentage points lower than that of February. Specifically, the surveyed unemployment rate of members of the population aged from 25 to 59 was 5.4%, 0.5 percentage points lower than the surveyed unemployment rate in urban areas and 0.2 percentage points lower than that of last month. The urban surveyed unemployment rate in 31 major cities was 5.7%, which is the same as last month. In March, the employees of enterprises worked an average of 44.8 hours per week, which is 4.6 hours more than last month. By the end of February, the number of rural migrant workers reached 122.51 million.

Ninth, residents' nominal income increased while real income decreased and the per capita disposable income ratio between urban and rural households dropped slightly.

In the first quarter, the nationwide per capita disposable income of residents was 8,561 yuan, a nominal increase of 0.8% year-on-year, or a real decrease of 3.9% after deducting price factors. In terms of permanent residences, the per capita disposable income of urban households was 11,691 yuan, a nominal increase of 0.5%, or a real decrease of 3.9%. The per capita disposable income of rural households was 4,641 yuan, a nominal increase of 0.9%, or a real decrease of 4.7%. By sources of income, the nationwide per capita wage income went up by 1.2% year-on-year in nominal terms, net operating income went down by 7.3%, net property income went up by 2.7%, and net transfer income went up by 6.8%. The per capita disposable income of urban households was 2.52 times that of the rural households, a reduction of 0.01 than that of the same period last year. The median of the nationwide per capita disposable income was 7,109 yuan, down by 0.7%.

Generally speaking, the overall national economic and social development in the first quarter remained stable despite the outbreak of COVID-19. However, we should also be aware that given the continuous spread of the pandemic, the mounting downward pressure of the world economy, and remarkably increasing instabilities and uncertainties, we are now facing increasing pressure related to the prevention of imported infections and new difficulties and challenges for resuming work and production while continuing to promote economic and social development.

For the next step, we must fully implement the decisions and arrangements made by the CPC Central Committee and the State Council, further coordinate efforts to advance both epidemic prevention and control and economic and social development and enhance policy implementation to resume work, production, market function and business. We must guarantee and improve people's livelihoods and accelerate the full restoration of productivity and living order under the normalization of epidemic prevention and control measures, thereby ensuring a decisive victory in building a moderately prosperous society and achieving poverty alleviation goals. Thank you.

Xi Yanchun:

Thank you, Mr. Mao. Now the floor is open for questions. Please identify your news outlets before asking questions.

CCTV:

According to statistics you've just released, economic growth apparently slumped in the first quarter of this year, and the decline of most indicators narrowed to a great extent in March. Under the complex economic circumstances both at home and abroad, what are your comments on the economic situation in the first quarter and its trend in the next phase? Thank you.

Mao Shengyong:

Thank you for your question. Based on the newly released statistics and my introduction, the outbreak of COVID-19 had a great impact on China's economic operation. In the first quarter of 2020, all economic indicators slumped, but we also noted that the main indicators showed recovery momentum in March, and the decline narrowed sharply. At the same time, we must take into account that, despite the impact of the pandemic, basic industry has maintained a normal level of increase; the supply of pandemic prevention commodities and daily necessities has been guaranteed; the livelihoods of 1.4 billion people have been guaranteed, and the overall social situation has been stable.

The statistics had the following prominent characteristics:

First, primary economic indicators improved in March. As pandemic prevention and control measures have continuously taken effect and the resumption of work and production has been accelerated, the decline of main economic indicators — including industries, services, investments, total retail sales of consumer goods, imports and exports — narrowed sharply in March, showing signs of improvement. For example, the value-added of industrial enterprises above the designated size grew by 8.5% year-on-year in March last year, the highest growth speed among 12 months of last year. In March of this year, the value-added of industrial enterprises above the designated size decreased by 1.1%, which is 12.4 percentage points slower than the decline of the first two months. The output of industrial enterprises above the designated size in March returned to the level of the same period last year. In March, as for 41 industries, 90% of the value-added increased faster than that of the first two months and 40% realized year-on-year growth. As for the output of statistically more than 600 main industrial products, 40% of them realized year-on-year growth. Therefore, statistics showed that the restoration of industrial production has taken effect, and the other related indicators displayed similar characteristics. 

Second, employment and commodity prices were generally stable. With the restoration of production and normal life, the overall employment situation was stable. In March, the surveyed unemployment rate in urban areas was 5.9%, 0.3 percentage points lower than that of February. The surveyed unemployment rate of members of the population aged from 25 to 59 was 5.4%, 0.2 percentage points lower than that of last month. We can see that, despite the impact of the pandemic, there was no large-scale unemployment across China, and the employment situation was generally stable. As for commodity prices, the growth of the CPI declined in March. The CPI went up by 4.3% year-on-year in the month, 0.9 percentage points lower than February, and down by 1.2% month-on-month. It grew by 0.8% in February month-on-month. In the first quarter, the consumer price index went up by 4.9% year-on-year, which is 0.4 percentage points lower than that of January and February. What does this mean? The main reason behind the decline of CPI growth was the decline of food price growth, especially the year-on-year decline of pork price growth and its month-to-month decline. The results showed that the food supply was sufficient, and the logistics chain was smooth.

Third, industrial upgrading developed continuously. During the period of pandemic prevention and control, overall production capacity, including the matching capacity of the whole industry, was fully developed. Against the backdrop of a severe pandemic, the industry was not seriously impacted, and the new drivers represented by new industry, products and business models grew against the trend. In March, high-tech industry went up by 8.9% year-on-year, which is 20 percentage points higher than that of January and February. 3D printing equipment, mono-crystal silicon, polycrystalline silicon and smart watch kept developing rapidly. The economic performance related to the internet, e-commerce, online learning and long-distance inquiry was energetic and realized speedy development. The value of online physical commodity retail sales increased by 5.9% in March, accounting for 23.6% of the total retail sales of consumer goods, or 5.4 percentage points higher than that of last year. From the perspective of added value, the value-added of information transmission, software and IT services increased by 13.2% in the first quarter, contributing to the growth of GDP by 0.6 percentage points. The financial industry grew by 6%. Therefore, though the pandemic was daunting, the rapid growth of new drivers was not changed.

Fourth, stable progress has been made in terms of poverty-alleviation tasks. The CPC Central Committee has attached supreme importance to the poverty-alleviation work and funded 139.6 billion yuan during the first quarter of this year that will trickle down to the needy population. So far, construction has begun on more than 260,000 poverty reduction projects in 22 provincial-level regions in central and western parts of the country. Meanwhile, average personal disposable incomes in Sichuan, Guangxi, Tibet, Guizhou and Qinghai, where the size of the destitute population is larger than in other parts of the country, grew nominally by 5.3%, 4.6%, 9.5%, 4.8% and 3.1%, respectively, with each registering a rate above the national average.

Fifth, the momentum of rebound is expected to continue. Electricity consumption, considered one of the most important indicators, registered a decline in March that was far narrower than in the prior month. Nationwide electricity consumption and generation rebounded, and have kept rising since the end of March. Moreover, China's total electricity generation in early April was observed with positive growth. According to the National Bureau of Statistics, the first quarter of 2020 saw 11,477 investment projects -- estimated above 50 million yuan each -- in its database, an increase of 144 in number year on year. Sales of excavators grew by 11.6% year on year in March. Meanwhile, imports and exports have significantly improved compared to the first two months, and in March alone, the performance has been constantly refined. More to the point, based on our investigations and researches, imports and exports kept on ameliorating in early April, following a slew of policies devised to assist enterprises to surmount financial woes and help resume work and production, and these efforts continue to pay off

In our next phase, stronger policies will be rolled out in response to changing situations. It is foreseeable that the economy will continue to rebound, to improve and to secure sound momentum. Thank you.

South China Morning Post:

Based on your prediction, given that the data released on the first quarter reflected a considerable impact caused by the coronavirus pandemic, will the second quarter mark the tipping point of China's economy? Moreover, will China abrogate setting a specific GDP growth target this year? How will you respond to the International Monetary Fund (IMF)'s latest forecast in which the economic growth in China is estimated to plummet to 1.2% this year? Thank you.  

Mao Shengyong:

I would like to answer the third question first. Recently, with the spread of the pandemic and the performance of the global economy, the IMF has substantially lowered its growth forecast, indicating that the world economy may contract by 3% on average. However, China, estimated to maintain a 1.2% growth, is among the few major economies to continue developing with positive growth. Meanwhile, I have also noted that the IMF forecasts China's economy to grow by 9.2% in 2021. The growth, from my point of view, will still average out at above 5% for the two years combined. We can also consider that next year, the Chinese economy will better unleash its activities and compensate losses incurred by the pandemic.

Regarding whether the tipping point will emerge in the second quarter, economic operations greatly improved in March compared to the prior two months, providing a fundamental judgment. The momentum of sound economic recovery in March can be continued, as the basic trend in the economy can play a much better role in the second quarter with the adoption of more influential policies as well as the efficient and orderly resumption of work and production. In addition, if the pandemic can be effectively controlled around the world, the economy in the next half-year should be better than it was in the first half. Our goal is to secure smooth economic operations and social stability throughout the year.

Regarding your concern about the annual growth target, this is always released by the government work report that is delivered during the two sessions (the annual meetings of the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference). To better control the pandemic, the sessions have been postponed this year. As a result, we know nothing specific about the rate right now. Thank you. 

Bloomberg:

I also have two questions. First, manufacturers that resume work after the outbreak may be forced to halt production again due to weak demand, rising costs and difficulty in funding and logistics, according to an industry ministry official who was speaking yesterday. Considering that, companies are having to shut down again because of clearly weak export demand and also the dire picture of retail sales and consumption that we saw in the data today. Can growth actually rebound in this quarter? And what will be the driver for that growth? My second question is regarding consumption vouchers, which are being discussed. Their use in places like Taiwan and Japan in the past has had some impact, but the multiplier hasn't really been that high. What is your hope for the multiplier of consumption vouchers? And do you think that will be a strong driver for retail sales and consumption? Thank you.

Mao Shengyong:

Thank you for your question. These two questions are very good. Regarding the first one, in the process of resuming work and production, enterprises may still face difficulties, such as rising logistics costs and reduced orders. Objectively speaking, the current progress of resuming work and production is relatively smooth. The resumption of work and the production of enterprises above the designated size is getting close to 100%, which means essentially all large enterprises have resumed work. At the same time, the resumption of work and production of small and medium-sized enterprises (SMEs) is better than expected, generally speaking, as more than 80% have resumed work. Therefore, the progress of enterprises resuming work and production is generally going well.

The logistics cost you mentioned is actually declining compared to that of previous periods, because production and overall livelihood are gradually being restored. And logistics are smoother in general. However, we must also see that, since the current external situation is more complicated and domestic demand is generally weak, enterprises do still face difficulties in insufficient demands and declined orders. In response to such difficulties, we introduced a series of policies in the earlier stages of the outbreak to help enterprises overcome difficulties, including further tax and fees reduction, and to reduce all aspects of costs for enterprises, including reductions and deferrals, as well as the reduction of social insurance premiums, etc., to increase capital support for enterprises, in turn helping them resume production.

However, we must add that because the current market environment is still relatively complex, enterprises are still facing many difficulties. In the next stage, policy will be further strengthened, and the accuracy of that policy will also be improved.

Regarding the growth of total retail sales volume of social consumer goods you mentioned, in fact, looking at the first quarter, we can see that total retail sales of social consumer goods declined, and the decline was relatively significant. However, looking at what happened in March, we see the resumption of work and production, and the resumption of businesses, and the markets are all progressing. The decline of market sales in March has narrowed significantly compared to the declines in January through February. But the whole first quarter showed a downward trend. In the next stage, as the orders of production and people's lives gradually return to normal, some consumption behaviors suppressed in the previous months will be compensated to some extent in the later periods, and consumption will gradually stabilize and rebound. This is the answer to your first question.

Your second question concerns the consumer vouchers you mentioned. Some countries and regions have introduced these policies, and some local governments in our country have also tried such policies. From the perspective of Zhejiang, Jiangsu and other places, we can see that after the introduction of consumer voucher policies, they have played a relatively good role in expanding the consumption of local residents and promoting market vitality. Thank you.

CNBC: 

Was the negative economic growth in the first quarter of 2020 affected by the spread of the COVID-19 pandemic? In terms of consumption, has internet influencer marketing been impacted? Finally, what are the challenges to employment? What is the current situation in March and April? Thank you.

Mao Shengyong:

Thank you for your questions.

To the first question, the impact of the pandemic is indeed obvious, and it is hard to get a quantitative calculation. This is because some of the impacts are direct, some may be indirect, some are short-term and some may be long-term. A hard hit now may get recovered later, as China's economy is relatively resilient, so any specific quantitative calculation is still difficult. 

My second answer relates to consumption and internet influencer marketing. In the next step, we need to boost domestic demand to promote the smooth running of China's economy, which is based on stable foreign trade and investment at the same time. We should invest more and unleash consumer potential to promote domestic demand. China has huge consumer potential, but with the current spread of COVID-19, people cut their spending. Furthermore, consumer potential will be gradually tapped; for example, we will see new consumption patterns growing quickly and an effort to target online shopping. On the whole, the curb on consumption seen in early stages will be lifted in later stages, with new consumption types functioning actively.

To the third question, I'll address employment challenges. Statistics show China's overall employment situation is stable, with an unemployment rate in March that decreased by 0.3% and the main labor force group (aged 25-59) showing a 0.2% drop compared to last month. However, we still face relatively great pressure, especially in the stages with the increasing downward pressure of the economy, decreased orders from enterprises and lessened demand. In this case, rural migrant workers and college students are the key groups who are under relatively big pressure. In response to this situation, China has introduced employment priority policies, which have been implemented with concerted effort. On the one hand, our country is doing everything possible to help enterprises weather difficulties and maintain a balanced employment rate. On the other hand, we should assist key groups; for example, we should increase training for migrant workers and help them return home to start their own businesses. Next, we should continue to promote innovation in employment and business startups in a flexible way. Generally speaking, greater efforts should be made to advance the overall employment balance. The situation in March and April stands as such: In March, the employment situation was obviously rising and improving, and this trend should continue in April. Thank you.

China National Radio (CNR):

We have noticed that the added value of the primary industry dropped 3.2%. What is the cause of this? And does it have negative implications for the agriculture sector? Many people have begun stockpiling grain. Is this necessary? Thanks.

Mao Shengyong:

Thanks for your questions. The decrease in the added value of the primary industry is mainly attributed to the slow course of animal husbandry. As we all know, due to the African swine fever, hog production has seen a year-on-year decrease despite monthly increases. Hence, the pork production in Q1 decreased 29.1% compared to the same period last year. The epidemic has also affected livestock and poultry production, causing a decrease of 10.6% on animal husbandry's total output value. In Q1, the output of animal husbandry accounted for 45% of the entire primary industry, so its slowing drove down the growth of the added value of the primary industry. 

Second, agriculture production now goes well. As it stands, spring plowing and planting has proceeded in an orderly fashion, essentially unaffected by the epidemic. Winter wheat, which accounts for more than 90% of the total summer crops, is growing well. According to a survey, the sown areas in many granary provinces maintain continuous growth, reversing a multi-year trend of decline. In addition, the advantageous conditions and situation for agriculture production provide favorable conditions for this year's grain harvest. 

Third, the current grain price is generally stable. As we all know, the yearly grain output has surpassed 650 billion kilograms in the past five years, reaching a record high in 2019. Currently, the self-sufficiency rate of grain in China is quite high, and we have an abundant stockpile. Therefore, from the perspective of supply and demand, the grain price remained stable in the first quarter despite the large impact of the epidemic. Even in hard-hit places, including Wuhan, there was no major fluctuation in prices. The grain price in Q1 increased 0.6% year on year, and the price in March grew 0.7% compared to the same period last year. Both are modest increases, and the monthly increases are even. It indicates that China has strong grain supply capacity and the supply-demand relationship is generally stable. Therefore, the country is fully capable of feeding its people. 

Fourth, in terms of animal husbandry, livestock production is improving, especially hog production. Along with the further resumption of work and production and the implementation of supportive policies, hog production is being resumed and greatly improving. By the end of Q1, pig stocks grew 3.5% compared to the end of last year, and the number of breeding sows increased 9.8%, maintaining growth for two consecutive quarters. Therefore, the entire animal husbandry sector is speeding up resumption and improvement. Thank you. 

Financial Times: 

I have two questions. First, will the economic downturn in the first quarter of 2020 have an impact on achieving this year's goal of building a moderately prosperous society in all respects? And will the gross domestic product (GDP) of 2020 double that of 2010? The second question is about the economic growth criteria. Some experts have mentioned the concept of relative economic growth before. Do you think we should abandon the current economic growth target? Thank you.

Mao Shengyong:

Thank you for your questions. The growth rate in the first quarter of this year needs to be viewed objectively. We cannot simply compare this year's economic growth with that of a conventional year due to the outbreak of COVID-19 and the considerable impact it will produce this year. We need to look at the Q1 economic growth with a calm mind.

First, we need to take into account the severe impact of the pandemic. The novel coronavirus disease epidemic is a major public health emergency that has spread the fastest, caused the most extensive infections and been the hardest to contain since the founding of the People's Republic of China in 1949. Facing such a severe epidemic, the CPC Central Committee has been putting people's safety and health as the top priority. A variety of forceful prevention measures have been put in place. The epidemic transmission was contained in a relatively short period, which prevented millions more from being infected and saved the lives of many Chinese people. Nevertheless, the price of achieving this was short-term economic loss.

Second, we need to consider the backdrop wherein the global economy and trade have declined sharply. As the pandemic has spread to more than 200 countries and regions worldwide, global cross-border investment, trade in goods and personnel exchange has fallen sharply. Some countries and institutes have lowered their growth forecast. China can hardly stand aloof against such a backdrop.

Third, we need to look at the advantages of China's entire industrial system. China's strong industrial production capacity, as well as its supporting facilities that are in an advantageous place, played a unique role in epidemic prevention and control. Meanwhile, such capacity has been further consolidated and enhanced over the course of the epidemic rather than being damaged by it. Despite a slowdown in growth, the industrial system as a whole was not impacted and neither was the entire production capacity. China has a sound social production system and ample production capacity. When the economy recovers, the capacity will release gradually.

Fourth, we need to see that the long-term upward trend of China's economy has not changed. The epidemic is a public emergency. The basic conditions and factors supporting China's long-term economic growth have not changed. The Chinese market is large and growing rapidly with great potential. Such fundamental characteristics will not change. In light of supporting factors, China has a sound industrial foundation with a strong supporting capacity and an ample labor force of constantly accumulating human capital as well as efficient logistics and transportation facilities, which will effectively support its medium- and long-term economic growth. Meanwhile, China will continue to deepen reforms and opening up and promote innovation to unleash the driving force, the potential and vitality of the economy. Therefore, the fundamentals of China's economy that is on a long-term upward trend will not change over the course of the short-term impact incurred from the epidemic. China's GDP in Q1 dropped 6.8 percent year on year. We need to consider this information with a calm mind, taking into account fundamental factors, including the impact of the epidemic, changes to the external environment and the advantages of China's own industrial system that is on a long-term upward trend. 

With regard to the goal of building a moderately prosperous society in all respects, one of the two centenary goals set out at the 18th CPC National Congress, China has basically achieved the goal on the whole after years of sustained economic and social development. Of course, there are still some shortcomings, the biggest of which is poverty alleviation. So, the focus of the entire Party and the whole country is to set itself on a course that will lead to winning the battle against poverty. As we make progress and win battles, the goal of building a moderately prosperous society in all respects will be better achieved. Such a society will be of better quality, more amenable to the test of history and more satisfying to the people.

Speaking globally, the Chinese economy fared slightly better in the IMF's forecasts. But the world has been affected and impacted by the COVID-19 pandemic on the whole. This shows that the world is indeed a global village and a community with a shared future for humanity, and the virus is the common enemy of all humanity. In this instance, the world needs to step up international cooperation to contain the epidemic as soon as possible by improving development and research in order to find solutions. In this way, we can get the world economy back on track at an early date. Thank you.

BBC:

I noticed the headline of today's press conference is about notable progress in coordinating epidemic prevention and control and economic and social development. You mentioned just now that falls in many economic indicators has been narrowing, and the effect of resuming production and work is obvious. We know that all governments are willing to emphasize what has been achieved. However, looking at the worst data released on this report, how big of an effect do you think these numbers will have?

Mao Shengyong:

Thank you. This is a very challenging question. We just introduced lots of data. Generally speaking, economic indicators have dropped a lot in the first quarter due to the epidemic outbreak. But at the same time, this trend has improved remarkably in March thanks to a series of policies. This is a conclusion drawn from key data.

The biggest domestic challenge, as you mentioned, is working hard to help enterprises. We will enhance targeted support to main market players, including small and medium-sized enterprises, to help them get through this difficult time. We will support them in terms of taxation, fees, costs and financial support. Employment and the economy can only be secured if enterprises are stable. This is one aspect.

Second, from a global point of view, countries around the world should enhance cooperation during this difficult time, especially in the field of epidemic prevention and control, so as to make the epidemic prevention and control more effective and reduce the impact of the outbreak. Work resumption and the order of life will then get back on the right track, and the world economy will be more likely to return to normal, only if the epidemic is under control. Thanks.

Yicai TV:

Although consumption has declined markedly in the first quarter of this year, online retail has remained resilient throughout the process. Will online retail and the related economy contain further and greater growth potential in the future? Thank you.

Mao Shengyong:

Regarding consumption, we can look at this from two aspects.

First, consumption did experience some restraint in the first quarter, especially in terms of outdoor activities and service consumption. Next, as the order of production and life returns to normal gradually, consumption previously depressed will receive some compensation, and the consumption will gradually return to normal. In addition, although consumption has been affected by the epidemic, we must firmly recognize that consumption in our country still possesses huge potential. The steady and sound development of the Chinese economy in the future depends largely on the expansion of consumption. So how can we expand consumption? The core answer consists of two parts: consumption ability and consumption intention. Some people may wonder if consumption still contains such potential given that the national average income was not very good in the first quarter. But consumption is not determined solely by current income, it also involves expected income and the status of property, including savings. Thus, household income is only one of the factors affecting short-term consumption. In the next stage, with the gradual recovery of the economy, the residents' income will gradually increase. Regarding consumption intention, the desire for a better life among our people is quite strong, and the overall trend of upgrading the consumption structure is irreversible. In particular, at present, the degree of social security is constantly improving, its coverage is expanding, and its level is increasing year by year. Under such circumstances, the consumption in our country still possesses huge potential. Next, we will strengthen the intensity of policy implementation and unleash the potential of consumption. Recently, we have introduced a number of policies to expand consumption, including a policy jointly released by 23 ministries and commissions.

Second, new forms of consumption related to the internet have shown strong performance. As the use of the internet becomes increasingly widespread, it has deeply influenced people's production and life. The growth of online consumption is relatively faster, and its proportion of the total consumption will gradually increase. This is a basic development trend. Thank you.

Xi Yanchun:

I just returned to Beijing from Wuhan. During the prevention and control of the epidemic, the Chinese people were presented with a very tough situation. However, after the fight against the outbreak, China has gained the confidence, courage and strength to overcome any difficulty and any challenge. Just as Mr. Mao said, the Chinese economy is presently facing a number of challenges. However, we should view China's economic development from a comprehensive, dialectical and long-term perspective, because the Chinese economy has the condition, the ability and the confidence to turn crisis into opportunity and gain initiative in development. If you have any questions about China's economic development, please feel free to let us know. We are more than willing to provide you with better information services. Thanks again to Mr. Mao, and thank you all. Today's press conference is hereby concluded.

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Read in Chinese

Speakers:

Xu Hongcai, vice minister of finance

Liu Guoqiang, vice governor of the People's Bank of China 

Zhou Liang, vice chairman of the China Banking and Insurance Regulatory Commission 

Chairperson:

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

Date:

April 3, 2020

Hu Kaihong:

Good morning, ladies and gentlemen. Welcome to the Joint Prevention and Control Mechanism of the State Council press conference. Today we have invited Xu Hongcai, vice minister of finance, Liu Guoqiang, vice governor of the People's Bank of China (PBC), China's central bank, and Zhou Liang, vice chairman of the China Banking and Insurance Regulatory Commission (CBIRC). They will introduce the measures taken by the Chinese Government to increase the scale of special local government bonds and provide inclusive financial support to micro, small and medium-sized enterprises and will also answer your questions.

Let's first give the floor to Mr. Xu. 

Xu Hongcai:

Good morning, ladies and gentlemen and media friends. 

Increasing the special local government bond quota allocated in advance can help accelerate bond issuance and use, which is of great importance in stepping up macroeconomic control and striking a balance between epidemic prevention and social and economic development. The Central Committee of the Communist Party of China (CPC) and the State Council have attached great importance to this. Xi Jinping, general secretary of the CPC Central Committee, stressed that proactive fiscal policy should be strengthened, the fiscal deficit ratio be raised as appropriate, special treasury bonds be issued and special local government bonds be increased at a meeting of the Political Bureau of the CPC Central Committee, a meeting of the Standing Committee of the Political Bureau of the CPC Central Committee, and a meeting for coordinating COVID-19 prevention and control and social and economic development. 

Premier Li Keqiang has presided over meetings of the Central Leading Group for Epidemic Control and State Council executive meetings where he has called for accelerating the issuance and proper use of special local government bonds, and paving the way for projects to start or resume construction as soon as possible to bolster and expand effective investment. Vice Premier Han Zheng and other State Council leaders have also made clear their requirements. The State Council executive meeting held on March 31 decided to release some special local government bond quota in advance to promote and expand effective investment. The Ministry of Finance (MOF) has implemented the decisions and plans of the CPC Central Committee and the State Council.

This year, in line with the decisions of the CPC Central Committee and the State Council and the authorization of the Standing Committee of the National People's Congress, China's top legislature, the MOF released 1.29 trillion yuan of newly added special local government bond quota. As of March 31, various areas across China issued 1.08 trillion yuan of newly added special bonds, accounting for 84 percent of the quota and increasing 63 percent year on year. It is estimated that China will accomplish the bond issuance task two and a half months in advance. The amount of newly added special bonds spent on projects was 825.5 billion yuan, accounting for 77 percent of the total. According to the requirements of the State Council executive meetings, the newly added special bonds issued by local governments should all be used for building transportation infrastructure such as railways and major infrastructure projects in environmental protection, agriculture, forestry, water resources, municipal utility projects and industrial parks. 

The amount of special bonds used as capital fund for major projects was about 130 billion yuan, which will help promote private capital and expand effective investment. The duration of the newly added special bonds is 14.5 years on average. Of these, 933.1 billion yuan will have a duration of over 10 years, accounting for 86 percent of the total, up 52 percentage points from 2019. The duration is more reasonable compared to previous years and better suits the duration of relevant projects. On the whole, the issuance and use of newly added special local government bonds are going smoothly.

The State Council executive meeting held on March 31 decided to allocate another batch of special local government bond quota in advance in accordance with procedures while ensuring the issuance and use of the quota that had already been released. This arrangement has been made based on factors such as the 2020 fiscal budget, local project construction requirements and the progress of the issuance and use of special local government bonds. The MOF will move to implement the recent decision. The bonds will continue to be used for major infrastructure projects decided upon at State Council executive meetings, including transportation, energy, agriculture, forestry, water resources, environmental protection, people's livelihood, cold-chain logistics, urban utility projects and industrial parks. 

In the meantime, we have optimized the use of bonds based on epidemic control and changes in funding needs. Major national strategic projects have been prioritized and will get key support. Old compound renovation has been added to the list of areas where special bonds can be used. The special bonds can also be used for emergency medical care, public health, vocational education and urban utility facilities such as heating and gas supply. Construction of new infrastructure such as 5G networks, data centers, artificial intelligence, logistics and the Internet of Things will be accelerated. Quota allocation will be tilted in favor of places with a large number of major projects and low epidemic risks. Meanwhile, a larger proportion of this year's newly added special bonds will be used as capital fund for major projects to mobilize more private investment.

In line with the decisions of the CPC Central Committee and the State Council, the MOF and other departments have guided and urged local governments to make preparations and carry out review, approval and selection of projects in advance. The newly added special bonds will be used to finance projects on the ground and will effectively drive the economy.

In addition, the MOF has also placed great importance in supporting the financing and development of micro and small enterprises. Since the start of the epidemic, the MOF has worked with the PBC and the CBIRC to implement a series of measures to encourage the state financing guarantee fund and local government financing guarantee and re-guarantee institutions to reduce fees, exempt counter guarantee requirements, improve service efficiency and provide credit enhancement services for micro and small enterprises. Repayment of guaranteed loans for startups that meet certain requirements can be postponed and micro and small enterprises will have priority in getting loans and interest discounts. The MOF will continue to work with the PBC and the CBIRC to guide financial institutions to increase support for micro and small enterprises to tide them over through the difficulties. Thank you.

Hu Kaihong: 

Thank you, Mr. Xu. Next, let's give the floor to Mr. Liu. 

Liu Guoqiang:

Good morning, media friends. In the face of the impact of the novel coronavirus outbreak on micro, small and medium-sized enterprises, the PBC has taken swift action to confront the new challenges to expand domestic demand, help the resumption of production and stabilize employment under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the decisions and plans of the CPC Central Committee and the State Council.

We have launched a series of measures to provide targeted financial services for epidemic prevention and control, resumption of production, and the development of the real economy. 

First, we have maintained reasonable and ample liquidity. The central bank injected 1.7 trillion yuan into the market to provide short-term liquidity after financial markets reopened. After reducing the reserve requirement ratio by 0.5 percentage point at the beginning of the year in order to release 800 billion yuan, we cut the banks' reserve requirement ratio in a targeted approach to release 550 billion yuan in long-term funding for issuing inclusive loans. 

Second, we have provided targeted relending and rediscount support by establishing a 300-billion-yuan relending program for epidemic control, with over half diverted to micro, small and medium-sized enterprises. The discounted interest has helped reduce micro and small enterprises' interest cost to less than 1.3 percent. In addition, we have granted another relending and rediscount quota of 500 billion yuan and reduced the interest rate of relending for agriculture and small enterprises by 0.25 percentage point to 2.5 percent. We have also used low-cost inclusive funding to support micro, small and medium-sized enterprises in critical sectors to resume production. 

Third, we have guided the interest rate lower. After the central bank cut the reverse repo rate by 20 basis points on March 30, cumulatively the rate had been cut by 30 basis points so far this year. 

Fourth, we have mobilized the whole financial system to work together. We have urged large state-owned banks to step up inclusive support for micro and small enterprise, offered special-purpose credit support through policy banks, guided local banks to provide better services and strengthened counter-cyclical adjustment. 

All these measures are now showing remarkable results. M2 and non-governmental financing growth rates are largely consistent with and a little higher than that of nominal GDP. Against the backdrop that the real economy is not yet fully resumed, the growth of newly increased loans has hit a record high. Micro, small and medium-sized enterprises are getting more credit at lower financing costs. The money market interest rate level is falling. Meanwhile, the renminbi exchange rate remains stable, while external financial risks are being effectively controlled.

The 88th State Council executive meeting decided to further strengthen inclusive financial support to micro, small and medium-sized enterprises. First, 1 trillion yuan of relending and rediscount quota will be provided to small and medium-sized banks, in addition to the 300 billion yuan and 500 billion yuan previously mentioned. This will be a continuing process that will help a large number of micro, small and medium-sized enterprises suffering high financing costs to obtain relending and rediscount. 

Second, further targeted cuts to the reserve requirement ratio will be carried out for small and medium-sized banks. With a large number of widespread outlets that mainly serve grassroots clients, these banks are inclusive by nature. In other words, unable to meet the needs of large clients, they have to serve small businesses. Implementing a lower reserve requirement ratio at these banks will be an important measure to continue financial supply-side reform. Through reform, the financial supply structure and credit fund allocation will be optimized, so that small and medium-sized banks can better focus on micro, small and medium-sized enterprises, increase credit supply, lower financing costs and contribute more to the real economy. 

Third, bond financing will be further enhanced. The authorities will support financial institutions to issue 300 billion yuan in financial bonds to specifically support micro and small businesses, and guide net financing in corporate credit bonds to increase by 1 trillion yuan over last year. These will be conducive to increasing financial institutions' funding sources, expanding the channels of diversified low-cost financing for businesses and improving financial services.

In the future the prudent monetary policy will be more flexible and moderate. Sticking to the worst-case-scenario thinking and considering changes in epidemic control and economic conditions, we will control the focus and pace of our policies, and give greater prominence to supporting the recovery of the real economy. We will strengthen the aggregate adjustment of monetary policy and counter-cyclical adjustment, balance the relationship among stabilizing growth, preventing risks and controlling inflation, and ensure that M2 and non-governmental financing growth rates are largely consistent with and a little higher than that of nominal GDP. Taking into consideration the characteristics of micro, small and medium-sized enterprises and current constraints, we will work to implement the existing measures to help enterprises out of difficulties. In addition, we will enhance international cooperation and guide market expectations through multiple channels. Thank you.

Hu Kaihong:

Thank you, Mr. Liu. Next, the floor goes to Mr. Zhou.

Zhou Liang:

Good morning. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core, the whole nation is united. Epidemic control in China is continuing to improve and consolidate, production is resuming in an orderly manner and the recovery of economic and social order is accelerating. But the global spread of the virus is now growing, increasing the risk of a global economic recession. China's economic and social development is facing external risks.

General Secretary Xi Jinping urged the intensification of macro control and the implementation of macro policies to provide more targeted financial services for epidemic control, the resumption of production and the development of the real economy. Under the decisions and plans of the CPC Central Committee and the State Council, and the leadership of the Financial Stability and Development Committee of the State Council, the CBIRC has implemented a series of measures to guide banking and insurance institutions to support enterprises in resuming production and maintaining financial security and stability, which have borne abundant fruit. Figures showed that in the first quarter of 2020, the banking sector granted nearly 7 trillion yuan in new loans, up by 1.18 trillion yuan year on year, giving powerful support to the development of the real economy. Insurance institutions have also played their safeguarding and stabilizing role in society. Meanwhile, banking and insurance institutions have fulfilled their social responsibilities, donating about 2.7 billion yuan to the fight against the virus. In cooperation with Chinese embassies in foreign countries, they have provided facemasks, disinfectants and other anti-epidemic materials free of charge to overseas Chinese students and staff members of Chinese-funded enterprises and institutions overseas. In addition, they have made donations within available resources to 59 countries and regions seriously hit by the epidemic. 

By carrying out the decisions and plans of the CPC Central Committee and the State Council, the CBIRC will implement various policies, comprehensively improve the quality and results of serving the real economy, control financial risks and deepen financial reform in the future, with the aim of contributing to winning the battle against the epidemic and ensuring steady and sound economic and social development. Thank you.

Hu Kaihong:

Thank you, Mr. Zhou. Now we will take questions.

CCTV:

Compared to previous years, what are the new characteristics of and changes in this year's special bonds? Thank you.

Xu Hongcai:

Thank you for your question. In accordance with the decisions and plans of the CPC Central Committee and the State Council, this year's special bonds will focus more on supporting economic and social development as well as epidemic control. Compared to previous years, the highlights and changes will be in the following aspects:

First, the scale will be expanded prudently. In the past two years, with the authorization of the National People's Congress and the approval of the State Council, some quotas for newly increased special bonds have been allocated in advance. In 2019, the quota was 810 billion yuan, while this year, the work has been done even earlier. The MOF has already allocated a quota of 1.29 trillion yuan in new special bonds. In addition, a decision has been made to grant another quota. This year's total volume has surpassed that of last year.

Second, issuance and utilization are being expedited. As was just explained, by March 31, local governments had issued 1.08 trillion yuan in special bonds, surging by 63 percent year on year. Moreover, an additional quota will be granted. The expedited issuance of bonds and fund utilization will help intensify macroeconomic policy regulation to offset the impact of the epidemic as soon as possible.

Third, the funds raised will be earmarked for designated projects. The additional quota for local government special bonds will be skewed in favor of regions with a large number of major projects and low epidemic risks where investment can effectively stimulate economic growth. Increased funds will help accelerate construction of key projects, including those that will improve people's wellbeing.

Fourth, utilization of funds will be optimized to meet the demand of epidemic control and demand changes in the investment sector. Today, the funds raised by special bonds are mainly used in seven sectors--transport infrastructure; energy; agriculture, forestry and water resources; environmental protection; services essential to people's livelihood; cold-chain logistics; as well as urban utility projects and infrastructure in industry parks. In the future, utilization of such funds will be properly expanded, with national key strategic projects prioritized for major support. Meanwhile, funds will go toward the renovation of old urban communities, while local governments will be allowed to invest these funds in emergency medical care, public health, vocational education and urban facilities such as heating and gas supply, especially in accelerating the construction of new infrastructure, including 5G networks, data centers, artificial intelligence and the Internet of Things.

Fifth, the proportion of funds raised by special bonds in the capital fund of key projects will be raised in order to mobilize more private investment. As for the newly issued special bonds this year, local governments are allowed to appropriately raise this proportion, while keeping in line with policies and risk control requirements, so as to better use the special bonds to attract more private investment. Thank you.

Nihon Keizai Shimbun:

Since last August, China's loan prime rate (LPR) has dropped by 26 basis points, which has led to a decreased bank spread. Some banks are calling for a lower benchmark deposit interest rate. What is your opinion?

Liu Guoqiang:

It's true that the decline in LPR results in a decreasing bank spread. But we will take measures, such as providing low-cost funds from the central bank and maintaining reasonably sufficient liquidity in the financial market, to greatly reduce banks' financing costs in the market. At the same time, we are also considering increasing support for banks, especially small and medium-sized banks. The deposit interest rate is a tool that can be used, but many things have to be taken into account before we use it, since it plays a special role as an anchor in the interest rate system. For example, we need to consider price. The Consumer Price Index (CPI) is now 5.3 percent, significantly higher than the one-year deposit interest rate, which is 1.5 percent. Other considerations include economic growth, as well as the exchange rate. With a lower interest rate, we may face greater pressure from currency devaluation. In particular, the deposit interest rate has a more direct impact on ordinary people. To apply a negative deposit interest rate, sufficient evaluation, including ordinary people's opinions, is required. To sum up, it is a tool that can be used, given that its use is fully evaluated.

China Financial and Economic News:

I have two questions. First, what is the current level of government debt in China? Second, what measures is the CBIRC considering to deepen reform and prevent risks for small and medium-sized banks, which are vulnerable in the face of a volatile international market and increasing downward pressure from the domestic economy? Thank you.

Xu Hongcai:

Thank you for your questions. In general, the size of China's government debt has increased over the years, but at a manageable rate. As of the end of 2019, China's local government debt was 21.31 trillion yuan. If measured by the debt ratio (debt balance/comprehensive financial strength), the local government debt in 2019 was lower than the internationally accepted alert standard, at a rate of 82.9 percent. Along with the 16.8 trillion yuan of Central Government debt at the end of 2019, the total national government debt rate (debt balance/GDP) was 38.5 percent, based on the GDP data released by the National Bureau of Statistics, which is lower than the EU's 60 percent warning line and of major market economies and emerging economies. At present, the risk of China's government debt is generally at a controllable level. Thank you.

Zhou Liang:

You also asked the question about deepening reform and preventing risks for small and medium-sized banks. At present, there are more than 4,000 small and medium-sized banks in China, and their total assets account for about a quarter of our entire banking system. They are an important part of our banking system. For a long time, small and medium-sized banks have played an irreplaceable role in supporting local economic development, serving the private sector and small businesses, and facilitating issues related to agriculture, rural areas and rural residents. On the whole, small and medium-sized banks are operating steadily. Although the amount of non-performing assets has risen slightly, the risks are manageable, and the main operating indicators and regulatory indicators are at a reasonable range.

Let me review the measures introduced by the CBIRC in the past three years, especially after the CPC Committee introduced the prevention and mitigation of financial risks as a key mission. The CBIRC has adopted a series of measures to promote the reform of small and medium-sized banks and prevent and mitigate risks.

The first measure focused on the banks' main obligations and operations. We resolved to reverse any deviation from their main businesses and a blind pursuit of speed and scale, so that these banks can return to the businesses they were intended to do and focus on providing local services. In particular, they are expected to strengthen financial services within the community and county where they are located, with strict regulations on operation in other places.

The second measure improved corporate governance. We have sought an approach to integrating CPC leadership into the entire process of corporate governance and strengthening performance evaluation and accountability of the general meeting of shareholders, board of directors, board of supervisors and senior management, as well as directors, supervisors and senior executives. Those who fail to perform their duties will be held accountable and improper performances must be corrected. Deferred payment of remuneration and recourse were implemented as part of an effort to strengthen the incentive and restraint mechanisms.

The third measure optimized the shareholding structure. This included strictly reviewing shareholder qualifications, strengthening the "penetrating" management of shareholders, especially actual controllers, and regulating shareholder behavior, as well as rectifying illegal use of bank funds, illegal acquisition of bank equity, nominal holding of shares and manipulation of bank management via improper means. Recently, we investigated and dealt with the problem of inadequate equity management of some small and medium-sized institutions, removed ill-performing shareholders and adopted regulatory measures in strict accordance with the law. In addition, we carried out centralized custody of equity and applied strict regulations on equity pledge and change, as well as capital increase, in an effort to prevent insiders or major shareholders from illegally using banks and financial institutions as cash dispensers.

The fourth measure clarified the responsibilities of all parties. First of all, we clarified the primary responsibilities of small and medium-sized banks in deepening reform and risk control, because whether a bank operates well mostly depends on its efforts. It is necessary to use strict supervision to force banks to meet their responsibilities, improve their management system and risk control system, and operate in accordance with the law. Secondly, we promoted the fulfillment of responsibilities by local Party committees and governments. Small and medium-sized banks are basically operated locally, and therefore shareholders funded by local state-owned capital must fulfill their responsibilities. Once a risk occurs, the local government must fulfill their responsibility to handle it locally. As a financial administration, the CBIRC must fulfill its supervising responsibilities. As a supervisor, it must not be afraid to offend people and cannot be a "scarecrow." Instead, they must dare to supervise and be good at supervision, and rectify illegal acts.

The fifth measure enhanced capital strength. By accelerating the disposal of non-performing assets, classifying assets, increasing provisioning and profit retention, banks can have better endogenous capacity for replenishing capital. By issuing common shares, preferred shares, non-fixed-term capital bonds and second-tier capital bonds, banks can have more channels and methods for supplementing capital. Local governments are encouraged to inject funds or realizable assets to some small and medium-sized banks under high risks, or replenish capital for small and medium-sized banks through capital injection by state-owned enterprises. At the same time, we welcome qualified and competitive private enterprises and foreign-funded institutions to participate in the reform and reorganization of small and medium-sized banks.

The sixth measure applied policies based on specific situations. Instead of developing any universally applicable policy, we applied policies specific to an area or industry, taking into account of its priorities. For a few institutions under high risks, we used precise measures to remove the danger.

The seventh measure increased anti-corruption efforts in the financial sector. Those who engage in illegal and criminal activities, such as abusing power for money and tunneling, will be severely punished.

To sum up, as a result of regulation and governance in recent years, great improvements have been made in small and medium-sized banks regarding a development model, corporate governance, operation and management, and resistance to risks. We are very confident in their ability to deal with risks.

I will give you a successful example. Hengfeng Bank is a bank with assets close to 1 trillion yuan. Due to the suspected crimes committed by the bank's previous two chairpersons, it had a large number of bad assets. The regulatory authorities took decisive measures to deal with the issue. First of all, along with relevant parties, they replaced the chairperson, president and other senior executives, and reshuffled its leadership. Those that illegally possessed the bank's shared were expelled according to law, and all violators were investigated and held accountable. At the same time, the CBIRC, in close cooperation with the PBC, the MOF and local governments, introduced new strategic investors after the bank was stripped of non-performing assets and injected with capital by local governments. Under the premise of marketization and the rule of law, they successfully mitigated risks and completed the reform and reorganization of the bank. The market remained stable and there were no big fluctuations. Thus, we can say that we achieved the Central Government's goal of defusing risks precisely and maintaining overall stability.

Next, the CBIRC will continue and deepen the reform of small and medium-sized banks by mitigating risks and helping them to embark on the road of high-quality development. Affected by the epidemic and the economic downturn, a small number of these banks have accumulated problems, such as inadequate internal control and corporate governance, and are threatened by some risks and challenges. We will take bank-specific measures based on their actual situation, in line with the principles of marketization and rule of law. These will include reorganization with direct capital injection, horizontal mergers, the establishment of disposal funds and bridge banks, and the introduction of new strategic investment to accelerate reform and reorganization. We will also fully assess the risks that may arise in the process, make various plans and firmly adhere to the bottom line that no systemic financial risks can occur. Problems may pop up in certain banks, but we are confident that things are largely under control, and there will be no regional and systemic risks. Thank you.

Economic Daily:

At present, the epidemic is spreading all over the world. Will its impact exceed that of the financial crisis of 2008? In addition, if the Q1 economic data is not what is expected, does the central bank have a new way to deal with it?

Liu Guoqiang:

This is a very important issue. Many people are now probably concerned about the current state of the economy and how to handle it. They each have their own opinion, some of which may be quite different. As for the world economy, the impact will be great. But how serious will it be and when will it get better? This is still full of uncertainties. My answer may not be enough, but I can only speak to this extent. I cannot provide anymore certainty.

The impact is currently obvious in three aspects. The first is in the industrial chain. Some enterprises, and even industries, can't produce without raw materials. The second is in trade channels. There are no orders even if enterprises do produce items. These two impacts are very significant. The third one is in the fluctuations of market expectations as everyone tries to lower risks. 

What will happen next? And will the impact exceed that of the 2008 financial crisis? The answer is no for now. Let's look at the stock market for example. Since February 24, the stock markets around the world have fallen about 25 percent. During the 2008 financial crisis, they dropped by about 50 percent, which is seen as a sign of a crisis. So far, they have plummeted by 25 percent. Will they drop another 25 percent? No one knows. The International Monetary Fund recently said that the global economy may have negative growth in 2020, and the recession may exceed the financial crisis of 2008. This statement is relatively clear, but it's only a possible scenario. So it is very uncertain. However, at the same time, we should not ignore that at present, each country has introduced a great deal of hedging policies, while also putting more efforts into epidemic prevention and control. International cooperation is also being enhanced, so we need to follow up and pay close attention to developments.

What will the impact on China be? The Q1 data hasn't come out yet. Taking the epidemic situation into account, I think the data will certainly not look good, but we should also see marginal changes. A comparison between February and March will show a significant improvement in March. Therefore, I think the impact of the epidemic on China's economy will be temporary. China's economy will continue to show strong resilience. In addition, we have a variety of tools and sufficient policies to stabilize economic growth.

What to do next? The central bank has issued a prudent monetary policy which pays more attention to flexibility and moderation, and puts support for the recovery and development of the real economy in a more prominent position. This is also required by the CPC Central Committee. Specifically, there are several aspects. 

First, we should implement policies in stages with due consideration for their extent, key points and timing. In the early stage, epidemic prevention and control was the core, which gradually turned into resuming production. Now, we need to recover whole industrial chains to make the whole economy move. Therefore, it is necessary to keep liquidity reasonably adequate to fully meet market demand. That is to say, we should not let the market run short of money or cause inflation. We should make sure M2 and non-governmental financing growth rates are largely consistent with and a little higher than that of nominal GDP. 

Second, we will continue to make good use of the 300 billion yuan in special relending fund and the 500-billion-yuan relending and rediscount program, both of which have been issued. Presently, the two quotas have not been used up and they of course should be utilized in a more targeted way.

Third, the new 1 trillion yuan in inclusive refinancing, which is also a relending and rediscount fund, should be implemented. This covers a wider scope than the previous 500 billion yuan, and should be implemented as soon as possible to achieve a seamless connection with the previous policy without interruption. 

Fourth, we should implement targeted cuts to the reserve requirement ratio and give full play to the positive incentive and guiding role of reserve tools. 

Fifth, we should promote LPR reform, strengthen pricing self-regulatory mechanisms, guide banks to cut their profits to a certain extent in favor of the real economy, and facilitate a significant drop in enterprises' comprehensive financing costs. 

Sixth, we need to strengthen global cooperation, create a good international environment and work with the international community to fight the epidemic and stabilize the global economy. At the same time, we should further our active communication with the market and the media, and make our policy intentions clear in a timely manner. Thank you. 

CNBC:

First question is about the afore-mentioned 300 billion yuan and 500 billion yuan loans. Are there any figures for the current situation of its implementation? The second question is: What are the specific MOF measures or policies being taken to support micro, small, medium-sized enterprises and are there any new measures to effectively stimulate consumption? Thank you.

Liu Guoqiang:

Yes, there are a few figures. The first is about the 300-billion-yuan specific relending fund, which is mainly used for major companies to fight against the epidemic and ensure supplies such as medical materials. As of March 30, the 300 billion yuan had been disbursed to nine national banks and some corporate banks in 10 key provinces and municipalities. A total of 228.9 billion yuan preferential loans had been given to 5,881 major companies, each getting no more than 40-million-yuan loans. The weighted average interest rate was 2.51 percent and after an MOF 50-percent interest subsidy, the companies' actual financing interest rate was about 1.26 percent. That's it for the 300 billion yuan. There is another 500 billion yuan relending and rediscount quota for banks focusing on supporting the orderly resumption of work and production. By March 30, local corporate banks had accumulatively issued 276.8 billion yuan in preferential interest rate loans, including subsidies, which have supported 351,400 enterprises (including rural households). Specifically, the agriculture-related loans were 55.2 billion yuan, with a 4.38-percent weighted average interest rate; inclusive financing for micro and small enterprises stood at 155.6 billion yuan, with a weighted average interest rate of 4.41 percent; and subsidies reached 66.1 billion yuan, with an interest rate of 3.08 percent. These interest rates are in line with the State Council's requirement of no higher than 4.55 percent.

There was an additional 1 trillion yuan of relending and rediscount proposed a few days ago at the 88th meeting of the State Council. It's supposed to go along with the recovery of the real economy and the previous 300 billion yuan and 500 billion yuan policies in case there is a gap between policies. It aims to provide low-cost financing support for small and medium-sized banks through the PBC's relending and rediscount tool. The cost is the same as the previous 500 billion yuan at 2.5 percent. The move can lower the cost of debt for small and medium-sized banks, which accordingly will improve their capacity to deliver profits to micro, small and medium-sized enterprises. For the 1 trillion yuan of relending and rediscount, we will require small and medium-sized banks to issue loans to micro, small and medium-sized enterprises at preferential interest rates, but have not stipulated the interest rate. The maximum rate for the relending of the 500 billion yuan is 4.55 percent. We have other methods such as setting reward assessments to guide the banks to lower their lending rates to these enterprises. There will be no financial subsidies from the Central Government, but according to the utilization of the 500 billion yuan , although the Central Government did not offer subsidies, many local governments did. Thus, we hope local governments can provide interest rate subsidies for the 1 trillion yuan, so that enterprises can enjoy a practical preferential rate. In terms of the timing, we are making plans right now, and we will be able to implement it after the 500 billion yuan runs out. Specific measures will soon be introduced. Thank you.

Xu Hongcai:

Since the outbreak of the epidemic, the MOF has attached great importance to the financing of micro and small enterprises, fully supporting them to keep their cash flow intact, and assisting them in overcoming difficulties. From the perspective of fiscal policy, a series of policies have been introduced, including tax cuts and subsidies. According to the plans from the State Council executive meeting on March 31, concentrating on issues such as improving the risk sharing mechanism for loans, encouraging micro,small and medium-sized enterprises to gain trust in commercial insurance products, reducing guarantee rates for government financing and reducing comprehensive financing costs for micro, small and medium-sized enterprises, the MOF will do the job from the three following aspects:

First, the scale of newly added reguarantee business by the national financing guarantee fund should be no less than 400 billion yuan in 2020 and will be required to be invested in 10 prefecture-level financial guarantee institutions that have made notable achievements in supporting agriculture-related and small companies. For loans under one million yuan, the reguarantee fee should be exempted, while for those over 1 million yuan, the fee should be halved.

Second, the government financing guarantee industry is required to halve the fees and reduce the comprehensive financing guarantee rate to less than 1 percent. Meanwhile, newly added business to support agricultural and small companies in 2020 should account for no less than 80 percent of the total.

Third, qualified entrepreneur guaranteed loans will be extended. We will further increase support for more startups and micro and small enterprises, lower the entry threshold and include key sufferers of the epidemic into the scope of support. It is estimated that in 2020, we will increase the list by 1 million individual entrepreneurs and 10,000 micro and small enterprises, with the growth rate increasing by 50 percent over 2019.

Next, the MOF will accelerate the optimization of the discounting policy for entrepreneur guaranteed loans through which more micro and small enterprises will have money to start businesses and easily run their businesses. We will improve guarantee policies and motivate institutions to support small businesses, pool financial resources to support micro and small enterprises, and achieve targeted assistant so that we can work together to help them tide over current difficulties. Thank you.

Bloomberg:

Hello, I'm a reporter with Bloomberg and my question is for Mr. Liu. You just mentioned the stability of the banking system. According to the Financial Stability Report released by the PBC in 2019, a stress test was conducted where 17 major banks failed and more than 180 large banks failed the liquidity test under the condition that the growth rate of the GDP was less than 4.1 percent. This year, the rate is estimated to be 3.1 percent, far less than the worst case scenario of 4.1 percent last year, how do you evaluate the banks' performance and will there be a new stress test? Thank you.

Liu Guoqiang:

The banking industry stress test in 2019 was based on macroeconomic econometric models, historical scenarios and expert judgment, and was mostly based on assumptions. This situation is "extreme but possible," with the possibility relatively small and is a hypothetical requirement. Since the outbreak, we have closely monitored the risk to the banking system, systematically assessed the impact of the outbreak on the banking industry and conducted stress tests. Some new test results will be disclosed in a timely manner through the Financial Stability Report and the report will be updated.

The epidemic has caused a large short-term impact on the economy. Some industries have suffered greatly and the risk will inevitably increase. There is also a downward pressure on banks' credit assets. But overall, China's banking industry has shown a strong loss-absorbing and anti-risk capacity. By the end of 2019, the non-performing loan ratio of China's commercial banks was 1.86 percent, far below the 5-percent regulatory standard. The provision coverage ratio was 186.08 percent and the reserve for loan loss was 4.5 trillion yuan. This is sufficient to cushion rising non-performing loans. In 2019, the banking industry disposed of 2.3 trillion yuan of non-performing assets, and there are diverse measures to monitor banks' asset quality. Although it is difficult for some banks, they have the ability to ease the pressure.

Zhou Liang:

Mr. Liu has given us a comprehensive introduction. The stress tests conducted by the PBC under the macro-prudential policy framework took into consideration extreme difficulties, which may not actually happen. Meanwhile, the CBIRC's supervision has shown a capital adequacy ratio of 14.6 percent. We will step up efforts to handle non-performing assets. Since the beginning of the year, a plan has already been put on the agenda. In terms of capital replenishment, we will continue to broaden the channels, such as issuing capital supplementation bonds, preference shares and common shares, so as to increase banks' endogenous capital supplement. If these plans are carried out step by step, there won't be major problems. Market performance will prove this. Recently, the “northbound” investment begins to flow into the Chinese stock market, as both the country's capital market and stock price of banks have remained relatively stable. In other words, our banking sector is sound in terms of policy, market and institutional performance. Thank you.

China News Service:

Affected by the pandemic, many micro, small and medium-sized enterprises are facing difficulties in operation and limited sources of capital chain. What measures will the CBIRC take to support them? Thank you.

Zhou Liang:

Since the outbreak, many micro, small and medium-sized enterprises have undergone difficult times. One of the prominent problems is the limited sources of capital chain. We have taken a series of timely measures to ease their financial pressure. According to statistics, by the end of February, the balance of inclusive loans to micro and small enterprises was 5.55 trillion yuan, up 31.8 percent year on year, for a considerable growth. The average interest rate on loans was 5.22 percent, down 0.22 percentage point from the previous year. Among them, the average interest rate of five major banks' inclusive loans to micro and small businesses was 4.4 percent, down 0.3 percentage point from the previous year. We have focused mainly on the following areas:

First, we have worked to increase credit to micro and small enterprises, weigh loans toward first-time borrowers, improve the quality of financial services and reduce their borrowing costs. We want to ensure that the growth of loans for micro and small enterprises with a credit quota of under 10 million yuan per company is not lower than the growth rate of any other loans, and that the number of accounts with a loan balance is not lower than the level at the beginning of 2020. Five major banks will strive for a year-on-year increase of 30 percent for inclusive loans to micro and small enterprises in the first half of the year. We will focus on increasing the proportion of first loans made to new clients of these enterprises and we will appropriately increase the proportion of credit loans and loan renewals to further reduce their financing costs.

Second, we have implemented the provisional deferment policy for both principal repayment and interest payment. The introduction of this policy was welcomed by the vast number of micro, small and medium-sized enterprises. The provisional deferred policy for principal repayment and interest payment will exempt default interest without adjusting clients' loan category or credit record. All of this has created conditions for enterprises to tide over difficulties. According to incomplete statistics, the principal and interest of micro, small and medium-sized enterprises' loans that are now subject to deferment policy amount to 700 billion yuan, and the majority of these enterprises and self-employed business owners are enjoying this preferential policy.

Third, we have increased credit support to micro, small and medium-sized enterprises in industries and regions severely hit by the pandemic. For industries such as wholesale and retail, hospitality and catering, logistics and transportation, and cultural tourism, which have been severely hit by the COVID-19 outbreak, we urged banks to not rashly withdraw, cut off or defer lending. Financial institutions were encouraged to reduce the loan interest rates so as to benefit enterprises. At the same time, by providing more credit loans and medium- and long-term loans, we wanted to support enterprises to resume work and production as soon as possible. We have also made targeted arrangements for Hubei Province. We will strive to lower the comprehensive financing cost in 2020 by over 1 percentage point from last year for small and micro enterprises in Hubei.

Fourth, we have given full play to the role of non-commercial banks in counter-cyclical adjustment and support the development of private, micro and small enterprises. Non-commercial banks are encouraged to provide low-cost funds to small and medium-sized banks, allowing them to extend relending funds to private, micro and small enterprises at favorable interest rates no higher than the interest rates of local inclusive loans. At present, the balance of relending funds has reached 180 billion yuan, up 17 percent from the beginning of the year. We will step up our efforts in the future.

Fifth, we have strengthened the utilization of Fintech (financial technology) to provide precise and convenient services for micro, small and medium-sized enterprises. We have encouraged the use of technologies such as big data and cloud computing to provide both online and offline services to enable these enterprises to obtain financial services without leaving their homes through the Internet, mobile phones and telephones.

Sixth, we have effectively reduced the financing costs of enterprises. We will further clear bank fees, crack down on irregularities, such as the practice of taking deposit as the premise condition for the approval and issuing of loans, and encourage insurance institutions to provide financing and credit to micro, small and medium-sized enterprises. In addition, Mr. Xu has just talked about lowering the fees on financial guarantees and intermediary services, while the PBC has put forward requirements to ensure that the dividends of the policies go to small and micro businesses and are not withheld.

In short, sound economic growth will ensure the stability of finance, and good performance by enterprises will boost the financial development of China. Micro, small and medium-sized enterprises are the main force for stabilizing employment. This concerns the vital interests of the people and was greatly affected by the pandemic. All parties should work together to help them tide over the difficulties. We urge banks and insurance institutions to put themselves in these enterprises' shoes and provide timely assistance to them, as well as honestly implement the policies of the CPC Central Committee and the State Council. Thank you.

Economic Herald:

A State Council executive meeting recently decided to increase the issuance of local government special bonds ahead of schedule. Is this a measure adopted to tackle the impact of the COVID-19 outbreak? How will risks be prevented while promoting the issuance of special bonds?

Xu Hongcai:

Assigning some of the local government special bond quota ahead of schedule is a measure to cope with the economic downturn as well as the COVID-19 outbreak. While giving better play to the role of special bonds, we should also prevent risks, which is an important part of our work. To play our role and prevent risks, we mainly take four aspects into consideration:

First, quick results are expected. Local governments are required to issue special bonds according to the quota decided by the Central Government. Local authorities should strive to issue the bonds by the end of the second quarter and allocate them to projects for substantive use with quick results. This is the most urgent work to do in order to deal with the economic impact of the outbreak.

Second, good projects are required. We have made some adjustments and expanded some areas on the basis of the seven fields that I mentioned before. Local governments are required to select projects in accordance with the fields designated by the Central Government. Key projects, must-do projects and projects that can play a major role in stimulating economic growth should be chosen. In particular, local governments and relevant departments are required to work closely, and local authorities must undertake their responsibilities. Financial departments, development and reform departments and others should all play their roles and cooperate with each other. After the local governments select projects, they should report to the National Development and Reform Commission and the MOF for examination and verification.

Third, the projects should be qualified and in compliance with regulations and laws. After local governments choose projects and central authorities check and verify them, all projects are required to be qualified and in compliance with the requirements of special bond management. That is to say, they should be public welfare projects with certain benefits. And the projects should have a scheme for financing and income balance, so as to ensure that they are truly effective while preventing risks.

Fourth, supervision should be conducted throughout the whole process of special bond issuance. In accordance with the requirements of special bond penetration supervision, we will track and manage the whole process of special bond issuance. If there are any problems, we will urge timely rectification and implementation. Thank you.

China Daily:

The COVID-19 epidemic has severely affected industrial chains. What measures has the CBIRC taken to support the coordinated resumption of work and production of industrial chains? Thank you.

Zhou Liang:

Thank you for your question. China is a manufacturing powerhouse occupying an important role in the international industrial chain. Along with the development of the modern economy, the structure and functions of many finished products have become increasingly complicated, making it impossible for one or even several enterprises to complete product design, research and development, production, processing, transportation and sales independently. Products have many parts and their divisions of labor have become more well-defined, which has generated these industrial chains. Analyses show that a leading enterprise in the manufacturing industry is usually supported by 200-300 micro, small and medium-sized enterprises or supporting companies, which have developed into an ecosystem of leading enterprises and other firms on industry chains. The epidemic has dealt a severe blow to China's industrial chains. Since the insufficient supply of certain parts may hold up the production of finished products, China's financial authorities have taken swift moves to improve services related to industrial chains and support enterprises' resumption of production and work.

First, the CBIRC has encouraged banking institutions to provide all-around financial services covering the whole industrial chains of leading enterprises and upstream and downstream small and micro firms based on analyses of information and capital flow as well as logistics.

Second, it has improved support for leading enterprises in industry chains, increased liquidity loans and medium- and long-term loans, encouraged leading enterprises to resort to loans and pay funds in a timely manner to upstream and downstream firms, and allow downstream enterprises to defer loan payments. The CBIRC has asked banks to improve the monitoring of credit funds and enhance the efficiency of payment for upstream enterprises to avoid delayed payment or the default in payment of large enterprises.

Third, it has followed the financing demands of leading enterprises as well as upstream and downstream micro, small and medium-sized enterprises, innovating financial products and services by developing financing through accounts receivable, orders, warehouse receipts and inventory. It is expected to provide 800 billion yuan in accounts receivable financing for micro, small and medium-sized enterprises on industry chains this year. 

Fourth, banks and insurance institutions are encouraged to further stabilize foreign trade through financial services, improve the cross-border financial service chains, cooperate with international financial institutions and provide credit support and financing services to help stabilize the global industrial chain.

Fifth, it has improved the technological level of financial services for industrial chains, mainly by encouraging banks to develop credit software and information systems, and further cooperation with leading enterprises on system matching, information sharing and fund monitoring.

Research findings show that the Industrial and Commercial Bank of China and China Construction Bank have provided all-around financial services for several thousand industrial chains. The CBIRC will continue to provide more targeted and effective financial services for industrial chains, prevent and control risks while ensuring steady growth, and promote a virtuous cycle of financial support and the real economy. Thank you.

Market News International:

Some media reports suggest that no special local government bonds can be directed to the real estate sector or land development. Is that true? If so, how will the shanty town renovation projects get funds this year? Will funds for shantytown renovation projects be significantly cut? Could you also elaborate on the specific use of special treasury bonds?

Xu Hongcai:

Thank you for your questions. The renovation of shantytowns is a major project related to people's livelihood and China's development. In line with the decision of the CPC Central Committee and the State Council, local governments have promoted renovation in recent years with great efforts and have made remarkable progress. Many residents in rundown areas have moved into apartment buildings. Some qualified projects have been completed across the board through years of efforts, while some are still face difficulties.

In 2020, local governments are supposed to follow the central requirements of reigning in the property sector, control the scope and standards of shantytown renovation, strictly evaluate the financial bearing capacity and settle the annual tasks of renovation in a scientific way. Local authorities need to avoid making one-size-fits-all renovations, setting impractical targets and blindly resorting to loans. It is necessary to focus on shantytowns in poor environments in old urban areas, as well as in state-owned industrial, mining, forest and reclamation areas. The Central Government has clarified that special local government bonds should not be used for land acquisition or stock and real estate-related projects in line with the requirements proposed at the 2019 Central Economic Work Conference on renovation of existing residential projects and old urban communities. With coverage adjusted, special local government bonds will support the renovation of old urban communities. Amid the current macroeconomic situation, the government will promote the construction of projects that can be started soon and produce tangible results to ensure the steady completion of work and effective investment. 

You also mentioned the issuance of special treasury bonds. Since the beginning of the year, the COVID-19 epidemic has exerted phased impacts on China's economy and added to downward pressure. As the pandemic spreads across the world, global economic and trade growth has been severely impacted, forcing China's economic development to face new challenges. To effectively cope with the impact of the epidemic and improve the adjustment and implementation of macroeconomic policies, the government has pledged to moderately increase the fiscal deficit rate and issue special treasury bonds this year, along with the CPC decision, to deliver positive and clear signals to society, boost market confidence and ensure the realization of annual economic and social development targets. A deficit rate increase and the issuance of special treasury bonds need to go through legal procedures. The State Council will submit them to the National People's Congress for review and approval. The specific plans will be settled based on the domestic and international economic situation, the demands for national macroeconomic adjustment and control, and fiscal revenue and expenditure. Thank you.

Hu Kaihong:

That is the end of today's press conference. Thank you.

.

Read in Chinese

Speakers:

Ma Zhaoxu, vice minister of foreign affairs;

Tian Xuejun, vice minister of education;

Lyu Erxue, deputy head of the Civil Aviation Administration of China (CAAC);

Zhang Yang, head for the Department of International Cooperation of the National Health Commission.

Chairperson:

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

Date:

April 2, 2020

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Ma Zhaoxu, vice minister of foreign affairs; Tian Xuejun, vice minister of education; Lyu Erxue, deputy head of the Civil Aviation Administration of China (CAAC); and Zhang Yang, head for the Department of International Cooperation of the National Health Commission. They will brief you on the health and security of Chinese students living overseas during the COVID-19 outbreak and take questions.

First, I will give the floor to Mr. Ma. 

Ma Zhaoxu:

Ladies and gentlemen, good morning. I'm very glad to attend the press conference held by the State Council Information Office again and communicate with you on the health and security of Chinese students overseas during the COVID-19 outbreak. 

Students studying abroad are children of the motherland and an important force to build China's future. The Party and the country have always attached great importance to Chinese students living abroad. At the early stage of the COVID-19 outbreak in China, concerned about the motherland, the Chinese students overseas donated money and supplies in support of the fight against the epidemic to the homeland, which showed their precious patriotism. Currently, the pandemic is spreading at multiple hotspots around the world. The CPC Central Committee has always cared about the health and safety of Chinese students overseas and has adopted a series of major measures.

General Secretary Xi Jinping has given important instructions and made arrangements regarding this issue on many occasions. He ordered more guidance and support to Chinese nationals overseas and the protection of their lives and health. According to the meeting of the Political Bureau of the CPC Central Committee, it is necessary to strengthen the care for Chinese nationals overseas, and the embassies and consulates abroad must provide consular protection, guidance on protection and secure material supplies to protect their lives and health. General Secretary Xi Jinping personally emphasized during calls with leaders from Britain, the United States, France, Germany and other countries that the Chinese government attaches great importance to the lives and health of Chinese citizens overseas. He also urged the host countries to safeguard the health, safety and legitimate rights of Chinese citizens, especially students. These requests were met with positive responses.

The Ministry of Foreign Affairs, together with the Ministry of Education and other relevant departments, resolutely implemented the important instructions of General Secretary Xi Jinping and the arrangements of the CPC Central Committee. Wang Yi, state councilor and foreign minister, and the Party Committee of the Ministry of Foreign Affairs required more than 280 embassies and consulates abroad to prioritize the relevant work of safeguarding Chinese students' health and lives. Acting on the principles of "putting people first" and "diplomacy for the people," the embassies and consulates are required to take all-out efforts to safeguard the health and safety of Chinese students living overseas as though they were taking care of their own children.

According to the deployments, we have issued multiple measures in this regard within a short period of time. Chinese embassies and consulates overseas have been in close contact with Chinese students in those countries, learned of their appeals and difficulties, and helped them solve all kinds of problems. The consular helpline 12308, operated by the foreign ministry, stands ready to provide consular protection and assistance. The Chinese embassies and consulates abroad have set up 24-hour hotlines to respond to the needs of students overseas. Meanwhile, through various channels that include embassy websites, WeChat and Chinese language media, we have introduced an online medical service platform to overseas Chinese nationals and forwarded a prevention and control guideline on COVID-19, as well as host countries' regulations on the pandemic control. We have strengthened communication with Chinese nationals overseas, especially students, in various ways. Chinese embassies and consulates abroad have mobilized the local Chinese community to establish pairing assistance systems with overseas students and set up platforms for Chinese citizens to help each other, providing services to buy supplies and giving a helping hand to those in quarantine. For example, with the promotion of the embassy in Germany, 85 Chinese student unions in Germany have set up 101 WeChat groups for the prevention and control of the pandemic, keeping contact with 35,000 Chinese students.

The Chinese Embassy in the U.S. invited experts to talk with overseas students and representatives of overseas Chinese via video link. Chinese ambassadors to the U.S., the UK, Germany, Italy, South Korea and other countries communicated with overseas students and overseas Chinese representatives directly via video link in the CCTV news studio. More than 100 million people watched the live broadcast online when Mr. Cui Tiankai, Chinese ambassador to the U.S., appeared on the CCTV news program.

Our embassies and consulates have actively performed their duties, and urged host countries to safeguard the health, safety and legitimate rights and interests of overseas Chinese students. Our ambassadors and consul-generals wrote letters to the presidents of local universities, asking them to take good care of Chinese students and solve their difficulties regarding accommodation and their studies. Recently, nearly 100 Chinese students studying in Russia were unable to obtain visas on arrival due to medical isolation or other reasons. The Chinese Embassy in Russia actively communicated with the Russian government and helped them solve their problems promptly. Some countries asked all students to move out of their dormitories because of the outbreak, so Chinese embassies immediately communicated with relevant departments to grant the students permission to stay and helped them solve this pressing problem. After learning that four Chinese students had been diagnosed with the novel coronavirus in Spain, the Chinese embassy and consulate in Spain urged local departments and hospitals to give them prompt and proper treatment, and invited Chinese doctors to provide them with online professional consultation from China. When words and deeds of discrimination against Chinese citizens appeared in some countries, Chinese embassies and consulates spoke out and took action at the earliest possible time. We expressed our condemnation, lodged solemn representations, and safeguarded the legitimate rights and interests of all Chinese citizens abroad.

Since the outbreak of the epidemic overseas, protective equipment including face masks have been in short supply worldwide. Chinese embassies and consulates have immediately responded to the needs of overseas Chinese students. In accordance with the general deployment of the Chinese government, we have made every effort to collect face masks, disinfectant, sanitizing wipes and other urgently needed materials through various channels, and distributed "health packages" to overseas Chinese students. Many diplomats from Chinese embassies and consulates even donated their own masks and stockpiled materials to our overseas students. The Chinese Embassy in the UK has prepared 200,000 "health packages", trying its best to ensure that every overseas student can get one. At present, Sri Lanka is running extremely short of epidemic prevention equipment and has imposed martial law. Seeing that many Chinese staying outside the capital of Sri Lanka need masks urgently, the Chinese embassy there immediately communicated with local governments and coordinated with local police to deliver masks and other emergency supplies by relay to Chinese compatriots including overseas students.

At present, the Ministry of Foreign Affairs has prioritized work regarding the "health packages," allocating 500,000 to countries with more Chinese students, including more than 11 million masks, 500,000 disinfection materials, and epidemic prevention guidelines. Since many countries have implemented national lockdown or lockdown on cities, the foreign ministry and the Civil Aviation Administration of China (CAAC) have been racing against time to prioritize deliveries of the "health packages" by civil aviation planes, so as to ensure overseas students can receive them in a timely manner. The picture here shows a "health package" prepared by the Chinese Embassy in Iceland, which includes masks, hand sanitizer, and epidemic prevention guidelines. Although the "health package" is small, it conveys the care and love of the motherland, the Party and our people, making overseas students feel a sense of warmth. Many overseas students have stated that the "health packages" let them truly feel the care of the motherland and have strengthened their confidence in fighting the epidemic. They said they would protect themselves well while completing their studies, and serve the motherland as soon as possible. One overseas student said on WeChat Moments, "I will never forget that there are students from all over the world on campus. But so far, I have only seen the Chinese embassy distribute epidemic prevention equipment to each dormitory door. Thank you, my motherland!" Another student wrote, "I will deal with the epidemic in a rational and scientific way, and enhance self-protection without neglecting my studies. This way I will let the people of the motherland and my family at home feel at ease."

We have also dispatched medical experts and working groups to provide scientific and professional guidance on epidemic prevention and control for overseas Chinese, especially overseas students. A total of 10 medical expert teams have been dispatched to eight countries. They are working with local governments to fight COVID-19, and have held face-to-face or online lectures to introduce knowledge on epidemic prevention to overseas Chinese students, companies and citizens. With the support of the Chinese Consulate-General in Milan, overseas Chinese in Italy have worked with the medical experts to establish an "online makeshift hospital." A few days ago, a joint team of medical experts from Shandong province arrived in the UK, including disease control and medical personnel. So far, they have held three online exchange events to provide guidance on epidemic prevention to overseas Chinese and help them lessen stress and anxiety. Overseas Chinese students have expressed their appreciation for the support and kindness from the CPC and the motherland.

When our overseas Chinese students encounter emergencies and are lost in deep trouble, the CPC and Chinese government will always be there to help them. Since the COVID-19 outbreak, China has returned overseas nationals facing difficulties to China by chartered airplanes and temporary flights. Since March, when the epidemic was spreading rapidly across the world, China has sent nine chartered planes to bring back 1,457 Chinese nationals, including overseas students from Iran, Italy and other hard-hit countries. Recently, many countries have made changes to their entry and exit policies for foreigners and adjusted flights, leaving overseas Chinses students stranded at airports in Ethiopia, Cambodia and Bangladesh. I remember that there were around 300 people stranded in Ethiopia, over 100 in Bangladesh and more than 140 in Cambodia. Most of these were overseas Chinese students. After learning about the situation, the Ministry of Foreign Affairs asked local embassies to act immediately and provide consular protection and assistance to the Chinese nationals, including providing necessary hospitality, accommodation, face masks and other health supplies. With the joint efforts at home and overseas, the problems have been properly resolved. All the Chinses nationals stranded overseas have already been brought back home by additional flights.

China now still faces the risk of epidemic rebounding at home. The spread of the epidemic outside of China has also posed new challenges to our domestic epidemic prevention and control work. Chinese embassies and consulates have paid close attention to the overall situation of the epidemic, as well as the demands and plans of overseas Chinse students. As far as I know, most overseas students have chosen to stay in their host countries. Experts have also suggested, based on the WHO's advice, reducing cross-border movement of people under the current situation. China's civil aviation authorities also reduced the volume of international passenger flights due to the pandemic. However, we have noticed that there are still some overseas Chinese students who need to return to China because of practical difficulties that cannot be resolved. The CAAC has stated that the major air transportation guarantee mechanism will be activated to arrange additional flights and charter flights to cities where a large number of people in need are concentrated together, if their destinations have the ability to prevent and control the epidemic. In fact, with our earlier efforts, many overseas Chinese students have already returned home. China is also taking measures to help Chinese students who run into difficulties in hard-hit countries to come back home in an orderly manner. Today, we have already arranged a temporary chartered flight to bring overseas students in London back home. The plane took off at 9:30 a.m. In light of the needs for domestic prevention and control, those returning to China should comply with the relevant regulations, including strict testing, isolation and observation. This is for the sake of their health and public health security.

Also, I would like to say, in face of the pandemic, our personnel working in Chinese embassies and consulates overseas have always kept in mind their aspirations and missions. They have devoted themselves in the fight against COVID-19 and provided services to overseas Chinese nationals, including students. In addition, our students studying abroad have also made their own efforts. Chinese students in Germany, the UK, Japan and other countries have set up online platforms and groups for epidemic prevention and control. They are supporting and caring for one another, as well as volunteering to help distribute health kits, playing an irreplaceable role in the fight against COVID-19. The Chinese embassies and consulates will always stand with our students and together we will secure the final victory.

The prevention and control of the epidemic is a people's war against COVID-19. Every Chinese national, including those studying overseas, are playing their part in combating the epidemic to eventually winning this war. I want to stress, again, that the Party and the government consider the health and well-being of Chinese nationals living overseas a priority. The motherland will always actively back overseas Chinese citizens. Conducting "diplomacy for the people" has always been the aim of our diplomatic work. We will take practical actions to embody the care and love for overseas students of General Secretary Xi Jinping and the Party and state by safeguarding overseas students' lives and physical well-being. We will work with the broad masses of overseas students to win this war. Thank you.

Hu Kaihong:

Thank you, Mr. Ma. Now, I will give the floor to Mr. Tian. 

Tian Xuejun:

Good morning, everyone. People are concerned about the safety of overseas students while the epidemic is still spreading outside the country. Overseas students are treasured assets to the Party and the people. Their health and safety is always a concern of the Party and state. Strengthening the love and care for overseas students is a major part of the epidemic prevention and control work targeting Chinese nationals living overseas. 

The Ministry of Education has been earnestly implementing General Secretary Xi Jinping's important instructions and CPC Central Committee's decisions and arrangements. It has been working with the Ministry of Foreign Affairs and embassies and consulates stationed abroad to push forward with various works. The Ministry of Education has demanded higher education facilities across the country to fulfill their job responsibilities and make efforts domestically and abroad at the same time. We have taken practical actions to demonstrate the Party and state's love and care towards overseas students in all areas, from offering anti-epidemic reminders and consultation, distributing anti-epidemic supplies, and assisting in accessing healthcare services, to helping handle issues regarding academic work and living, encouraging educational circles to help each other, encouraging overseas Chinese circles to make contributions and show kindness, and strengthening consular protection to safeguard the legitimate interests of overseas students. Our only goal is to do our best to safeguard the health and safety of overseas students.

Specifically, the measures taken by the Ministry of Education can be summarized as six "strengthenings": strengthening guidance for anti-epidemic works, strengthening the guarantee of material supplies, strengthening treatment of patients, strengthening psychological support, strengthening help and support for people in need, and strengthening consular protection. 

To strengthen the guidance for anti-epidemic works, the Ministry of Education organized specialists to compile a guide on the prevention of the novel coronavirus for overseas students. Professor Zhang Wenhong and other known experts in China were invited to give lectures to overseas students, and they have proven popular. 

To strengthen the guarantee of material supplies, embassies and consulates stationed overseas have collected anti-epidemic materials, including masks, from multiple resources, rushing to produce health packages and love packages overnight out of these materials and then distributing them to overseas students in no time. This work is still ongoing. 

To strengthen the treatment of patients, the Ministry of Education and embassies and consulates stationed overseas have established a system to carry out COVID-19 tests for overseas students and created daily reports. Once a confirmed case or a suspected case is discovered, the emergency response mechanism will be activated immediately. Judging from the data we have obtained, the number and proportion of confirmed cases are relatively small among overseas students in general. 

To strengthen psychological support, we have consolidated the resources of higher education facilities in the country to offer counseling services for overseas students around the clock. We have also set up consulting hotlines to clear doubts and offer help to overseas students and their parents at home. 

To strengthen help and support for those in need, embassies and consulates stationed overseas and the Ministry of Education have gathered overseas students together via the All-China Students' Federation and WeChat groups. Some embassies and consulates have widely mobilized Chinese-funded organizations and overseas Chinese associations in local areas to offer help to overseas students in need. A small portion of overseas students has encountered practical problems, such as visa expiration and being forced to move out of the dormitory. Our diplomats have resolved these situations in a timely manner. 

To strengthen consular protection, we have demanded embassies and consulates stationed overseas to pay close attention to incidents of overseas students being discriminated against or being assaulted and to make strong representations accordingly in a timely manner. The WeChat account “教育部平安留学” (Ministry of Education, Study Abroad Safely) has been continuously compiling and publishing safety notifications for typical cases of overseas Chinese students being under threat and offering targeted safety advice.

Next, we will enhance analysis and assessment of the epidemic, continue to improve and refine our plans, and go all out to do a better job of conducting epidemic prevention and control work among overseas students by working with the Ministry of Foreign Affairs and embassies and consulates stationed overseas. Thank you.

Hu Kaihong:

Thank you, Mr. Tian. Next, the floor is given to Mr. Lyu Erxue.

Lyu Erxue:

Good morning, everyone. As the situation of the COVID-19 epidemic changes, the focus of China's efforts has shifted from guarding against domestic transmission and spreading outside China , to instead guarding against imported cases and a possible domestic epidemic rebound. Following the work requirements of the State Council's Joint Prevention and Control Mechanism to contain the continuously rising imported cases from overseas, the CAAC has adopted a policy to further cut international passenger flights, stipulating that each airline operate only one flight a week per country. Now, a total of 47 domestic and international airlines maintain regular flights with 61 destinations in 40 foreign countries. The total number of international flights stands at no more than 134 per week. Nevertheless, the weekly flight schedule is subject to adjustment in light of the actual operation of airlines. For instance, there are 108 flights scheduled this week. Such a significant decline in international flights is expected to effectively block the epidemic from being imported into China through air travel. The move to maintain the minimum level of flights is supposed to aid homeward bound Chinese citizens abroad, especially overseas Chinese students. 

Meanwhile, in order to reduce passengers' risk of infection and guarantee the safety of flights, as well as epidemic prevention and control, the CAAC has taken several measures. First, it has released its fourth cumulative update of a guide regarding epidemic prevention and control technology for passenger airlines and airports. With the ongoing development of the COVID-19 outbreak, especially the evolving international epidemic, the CAAC has been continuously improving its epidemic prevention and control measures for passenger airlines and airports, following the requirements of adopting differentiated strategies subject to regions and levels. Second, it requires all airlines to properly control the load factor of international flights and make reasonable adjustments to the cabin layout to disperse seating as far as possible. Third, it requires health checks on all passengers. This includes body temperature scanning before boarding, as well as an extra body temperature inspection of passengers once onboard. Fourth, airlines are instructed to set up a temporary quarantine zones on their planes. Any passengers found with fever, fatigue, dry cough and other symptoms must be isolated in time to avoid cross-infection. Fifth, it requires all airlines to conduct disinfection on their aircraft.

In short, adoption of the above-mentioned measures can effectively prevent the virus from spreading throughout aircraft and ensure the health and safety of returnees flying from overseas. Thank you.

Hu Kaihong:

Thank you, Mr. Lyu. Next, the floor is given to Mr. Zhang Yang.

Zhang Yang:

Greetings, friends from the media. The NHC attaches great importance to the health and safety of overseas Chinese students. Since the COVID-19 outbreak, we have held news briefings and organized experts for media interviews to answer questions regarding the general concern of overseas students, including the transmission route of the disease and personal protection means. We have also promoted popular science. We have launched a special Q&A column about protecting against the epidemic on our official website and started a column about the COVID-19 on our official Health China accounts on Wechat, Weibo and TikTok. We have also published a series of popular science articles on the NHC's official website and Weibo account, including how overseas Chinese can protect themselves during the epidemic, psychological counseling, and a guide for the public on how to wear face masks. Promoted by Chinese embassies and consulates, these articles have provided technical support for overseas Chinese students to protect themselves from getting infected during the epidemic. The public can easily get access to relevant knowledge and information when browsing NHC's official website and its account on Weibo and Wechat. 

Recently, we dispatched a group of Chinese medical experts to several countries in the fight against the epidemic. During their work overseas, the experts cooperated with local academic institutions and student unions to promote health education for overseas Chinese students through symposium and video-streaming and answer their questions in details. This has been welcomed by overseas Chinese students. Meanwhile, the NHC has instructed the aiding medical teams to play to their strengths and guide local Chinese students on personal protection from the virus. This has played a positive role in protecting overseas Chinese people.

In addition, the NHC has cooperated with the Foreign Ministry to prepare a manual on epidemic prevention included in a charity bag of protective supplies provided for overseas Chinese students. We will do our best to care for overseas Chinese students during the epidemic. Earlier, the Chinese government arranged charter flights and temporary flights to bring back Chinese citizens, including students studying abroad. We have worked with the departments of foreign affairs and civil aviation to equip flights with medical workers and to give emergency medical support on the way home.

Next, the NHC will resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, continue to cooperate with the diplomatic, education and aviation sectors to provide health security for overseas students, assist in the arrangements for returning students and safeguard the safety of their lives and their health. Thank you.

Hu Kaihong:

Thank you, Mr. Zhang Yang. We will now take questions.

CCTV:

Could you please give us more details about the health packs that Chinese diplomatic missions have sent to overseas students? In addition, some of the packs were sent from China using international logistics companies. Could you tell us how logistics transportation will be guaranteed as the international outbreak intensifies?

Ma Zhaoxu:

As I mentioned earlier, many countries are facing a shortage of medical supplies as the epidemic continues to spread, in particular masks, disinfectant and sanitizers which have sold out. In this situation, overseas students and their parents have become worried. The CPC Central Committee and the State Council have paid close attention to the situation, instructing the Ministry of Foreign Affairs, overseas embassies and consulates to provide help to these students. Under the joint support of the finance, education, aviation and national health sectors, each embassy and consulate immediately acted, fully mobilizing all resources to collect and send health packs to students overseas, sparing no effort to solve the practical difficulties they are facing. 

I would like to list some examples. The Chinese Embassy in the United Kingdom held a ceremony for sending health packs. Here is a group photo of Liu Xiaoming, the ambassador to the United Kingdom, alongside student representatives. Ambassador Liu told the representatives that in the face of the fierce outbreak, they are not alone, and that the motherland will always be with them, whilst the embassies and consulates will support them. The health packs have delivered love to every student in the U.K., bringing warmth, health, strength and confidence. The Chinese Embassy in Japan sent out a survey through public platforms to identify needs, sending the first batch of 30,000 masks to over 4,000 students lacking protective equipment. Before the arrival of the health packs from China, the Chinese Consulate General in San Francisco actively collected over 20,000 masks and sent them to students stranded in hard-hit areas. The Chinese Consulate General in Penang, Malaysia, donated masks purchased for their private use, bought some protective supplies locally and prepared the first batch of health packs before the arrival of the ordered supplies, also writing letters of sympathy to the overseas students. The students said that the health packs made them feel the care and love of the Party and government as well as the support and help from their motherland and family. They could truly feel that the embassies and consulates are standing with them, providing a strong backing. 

Next, the Ministry of Foreign Affairs and overseas embassies and consulates will consider the current situation in the students' host countries, continuously sending out health packs to those students stranded by the epidemic in a timely manner, sparing no effort to assist them in the fight against the epidemic, jointly safeguarding their health and safety and overcoming the current crisis.

Lyu Erxue:

At present, Chinese citizens who remain abroad, with overseas students in particular, may have their health and safety exposed to the threat posed by the rapid spread of the pandemic in foreign countries and regions. On March 25, the CAAC embarked on a mission to transport health packs containing hygiene products to Chinese students overseas. This task was assigned in accordance with the requirements made by the Leading Group of the CPC Central Committee on Novel Coronavirus Prevention and Control, the concrete deployments of the joint prevention and control mechanism of the State Council and the general demands provided by the Ministry of Foreign Affairs. The first batch of more than 300,000 packs, weighing 300 tons, will be delivered to 46 Chinese embassies and consulates in 12 countries, namely, Italy, South Korea, France, Germany, the United States, the United Kingdom, the Netherlands, Sweden, Japan, Australia, Canada and Malaysia, before reaching the students. While coordinating with China Airlines and China Eastern Airlines, the CAAC has drawn up a plan with multiple approaches, such as, transporting the health packs in the holds of passenger planes, making full use of cargo aircrafts and refurbishing passenger airliners for cargo services. The delivery of the packs will be prioritized under the joint efforts between the CAAC and the airlines involved to ensure that the necessities can reach our embassies and consulates overseas as soon as possible, as a substantial number of international passenger flights have been suspended. In terms of our latest plan, we will finish delivering the more-than-300,000 packs with an estimated weight of around 300tons, by April 10. By yesterday, we had already flown to the seven countries of Italy, the U.S., France, the UK, Germany, South Korea and Canada, delivering an estimated 116 tons. The CAAC has supported passenger airliners from both home and abroad for use in cargo transportation, opened green access channels and streamlined approval procedures to help the cargo flights complete check-in in a timely manner. That is how we are managing to meet the cargo demand for international aviation.

At the same time, abiding by the concrete deployments of the joint prevention and control mechanism of the State Council, the CAAC has organized and provided help with several humanitarian missions and commercial export cargo deliveries of medical necessities. By April 1, it had conducted 178 chartered flights, sending 100 experts and healthcare personnel and over 2,635 tons of anti-virus supplies to 40 countries, including, the United States, the United Kingdom, Iran, Iraq, Pakistan, Italy, Serbia, Japan and South Korea. Thank you.

CRI:

My question is for Mr. Tian. What measures will the Ministry of Education take to safeguard the legitimate rights of Chinese students overseas, whose studies and lives have been affected by the shutdowns of campuses in some hard-hit countries during the spread of the epidemic?

Tian Xuejun:

The Ministry of Education launched plans as soon as we learned some governments and universities abroad had closed campuses and suspended classes as part of their local anti-virus measures. We asked our embassies and consulates to maintain close contact with our students overseas who study or live within their jurisdictions, to keep informed of relevant arrangements concerning the students and to persuade schools to schedule appropriate academic lives for our students who remain there. In addition, our diplomats have urged these localities to ensure the health, safety and legitimate rights of our overseas students and to help address their difficulties in learning and everyday life. 

Over the past few days, the education departments of embassies and consulates acted immediately by entering negotiations when they learnt that some overseas students had been coerced into moving out of their dormitories. However, most cases have now been solved in appropriate ways. To lend a helping hand to those students in need, some embassies and consulates have prepared temporary quarantined accommodation at the most popular localities for overseas Chinese in pursuit of academic achievement. Meanwhile, full play should be given to the Chinese Student Association whose vital roles can be exemplified by its 95 subsidiaries across the United Kingdom. Organized by the educational department of the Chinese Embassy to the UK, these associations have extended a mutual help network to 71,000 Chinese students via 208 contact points in 56 British cities. Their work has been similar to what Mr. Ma told us has been done in Germany. In addition, we are leveraging the influence of local overseas Chinese societies and Chinese-funded institutes to ensure the overseas students have places to live, sufficient food as well as the necessities and care that they need in their daily lives. Thank you.

Phoenix TV:

My question is to Mr. Ma. We have noticed that many overseas students are struggling with the question of whether they should return or stay. On one hand, they want to continue their studies; on the other hand, they have concerns over the quick spreading of the virus. What advice will the Ministry of Foreign Affairs give to those students, especially for those in the hard-hit countries?

Ma Zhaoxu:

Regarding China's overseas students, first, the number of students studying overseas is quite large. According to the statistics of education authorities, the total number of China's overseas students reaches 1.6 million. Among these, 1.4 million remain abroad now. Second, our overseas students are located in different countries and regions. There are about 410,000 in the U.S., about 230,000 in Canada, about 220,000 in the U.K., about 110,000 in Germany and France, and 280,000 in Australia and New Zealand. There are also 180,000 in Japan and South Korea. These students are widespread. Third, these countries where our students are living are in different phases of the COVID-19 outbreak, and the measures implemented in these countries are also different. Fourth, overseas students are in different situations, so they have varied needs.

Faced with the circumstances described above, we must take them into consideration and implement measures steadily and accurately. The goal is to try everything to ensure that our overseas students are healthy and safe. The Ministry of Foreign Affairs, the Ministry of Education and China's overseas institutions give precise guidelines for overseas students based on different countries' situations. Based on our knowledge, most overseas students have taken the words of advice given by the WHO and China CDC. Following the suggestion of avoiding unessential travel, these students choose to stay where they currently are. This helps to prevent cross-infection caused by their hasty travels. It avoids being stalled in transit countries due to border control restrictions, and it could also avoid possible impact on overseas students' study and visas.

For those students in hard hit countries who do urgently need to return home, the CPC and the Chinese government will take necessary measures in time to help them get home in an orderly fashion. These students should cooperate with civil aviation, ports and local epidemic prevention departments before boarding flights, as well as during time spent on the planes and after crossing the border. And they need to strictly follow the epidemic prevention regulations while being responsible for public safety and their own health. We will continue to follow the requirements and arrangements of the CPC Central Committee and the State Council, take care of and serve overseas students and solve their problems properly. Thank you.

China Daily:

How do overseas students in heavily hit regions, such as European countries and the United States, protect themselves to reduce the risk of infection? For example, many of them are living in rented collective apartments; how can these students avoid cross infection? How can they protect themselves when they go out to shop or perform an essential activity?

Zhang Yang:

No matter what the occasion, overseas students should maintain good personal health habits. They should not spit everywhere, they should cover their mouth and nose with a tissue or their elbow when sneezing or coughing and they should improve hand hygiene and abide by the laws and regulations of the country where they are living. In daily life, they should eat a balanced diet, exercise more, get enough sleep and keep a good state of mind. All these things help to improve their immunity. Meanwhile, they must wear a mask when staying in a crowded or relatively closed environment, such as public transportation, elevators or indoor public places. 

Students who live in a collective apartment should keep their living environment clean and ventilate their rooms often. Experts recommend rooms be ventilated two to three times a day for 20 to 30 minutes on each occasion. They should pay attention to whether their roommates exhibit such symptoms as a fever, cough or other abnormal conditions, and they should take active protective measures. Students should reduce close contact with others who live in the same apartment. If close contact is necessary, wear a mask and keep a distance of at least one meter.

If they go out to shop or perform an essential activity, they should wear a mask when taking public transportation and staying in a crowded or closed environment. They should keep a distance and avoid direct contact when communicating with staff members and carry quick-drying hand disinfectant to keep their hands clean. Thank you. 

Global Times:

At present, due to a massive reduction of international flights, many overseas Chinese students are faced with a situation where it is difficult to purchase a flight ticket back to China. You also introduced that the civil aviation department will start relevant work for overseas charter flights for cities that have concentrated needs and destinations that have the capability of handling charter flights. Has this work started, and how is it going? Thank you.

Lyu Erxue:

I have just mentioned that due to the spread of the COVID-19 pandemic and the requirements of the joint prevention and control mechanism of the State Council, the Civil Aviation Administration of China (CAAC) has issued the "Five Ones" policy, which allows one airline to maintain one air route in one country flying up to one flight per week. Under the policy, the number of international flights has significantly reduced, but at the same time retaining no more than 134 scheduled international flights per week between China and 61 cities in 40 countries outside China. In addition, in accordance with the CPC Central Committee's general requirements for enhancing the care of Chinese citizens abroad and in strict compliance with the specific deployment of the joint epidemic prevention and control mechanism of the State Council, the CAAC has launched a vital air transportation support mechanism in a timely manner for cities that have concentrated needs and the capability of handling travelers and arranged temporary flights to assist overseas citizens in returning home. From March 4 to 26, the CAAC organized a total of 9 temporary flights to assist 1,466 Chinese citizens in returning home from Iran and Italy. Among them, 6 temporary flights were executed in Iran, and 976 passengers were transported home. The majority of them are overseas Chinese students. Three temporary flights have been carried out in Italy, and the fourth one is currently underway, which will transport 180 Chinese citizens back home. The specific route of the fourth flight is from Milan to Wenzhou.

At the same time, according to the unified deployment of the joint epidemic prevention and control mechanism of the State Council, the CAAC officially launched the temporary flight mission to the United Kingdom today. Mr. Ma also just revealed that the first flight has taken off from Shanghai Pudong Airport at 9:30 a.m. this morning and will arrive in London tonight. It is expected to pick up about 180 overseas students. To ensure the prevention of the epidemic and control during the flight, the CAAC adopted a series of targeted prevention and control measures. First, we formulated prevention and control measures for temporary flight missions to countries with a severe pandemic, which provides practical guidance for the protection of people on board. Second, we are working closely with embassy staff and accompanying medical staff of the National Health Commission (NHC) to carry out body temperature screenings and testing before boarding. Third, we will provide special protection and disinfectant supplies for each flight, and medical N95 masks will be distributed to each passenger to minimize the spread of the virus on the aircraft. Fourth, we will take adequate anti-epidemic measures on board, such as ventilation and disinfection. Passengers are seated in separate seats, and the cabins are partitioned to reduce the mobility of people on board. Fifth, we will strictly disinfect the aircraft after each mission to ensure safety before performing other flight missions.

In the next step, the CAAC will strictly follow the task deployments of the joint prevention and control mechanism of the State Council, promptly launch aviation support mechanisms for overseas students who need to return to China from countries that are severely affected by the pandemic, and do an excellent job in transport capacity adjustment, crew arrangements, and onboard prevention and protection to ensure the successful completion of the task of helping overseas students return home. Thank you.

Hong Kong China Review News Agency:

How many overseas Chinese students have been diagnosed with COVID-19? What kind of assistance will relevant departments offer if overseas students are diagnosed with the disease? Thank you.

Tian Xuejun: 

As of March 31, 36 Chinese students studying abroad have been diagnosed with COVID-19, according to Chinese embassies and consulates. After learning that some Chinese overseas students showed signs of infection, Chinese embassies and consulates immediately activated emergency response mechanisms and assisted the students in seeking medical treatment. All of the diagnosed students have received timely treatment, and 11 of them have recovered.

Hong Kong Economic Herald:

Just now, Mr. Ma said the Ministry of Foreign Affairs, along with Chinese embassies and consulates, took active measures to address the problem that some overseas students were stranded in transit due to domestic flight adjustments. What should overseas students do if they encounter such problems in the future? Thank you.

Ma Zhaoxu:

As a result of flight adjustments and other reasons, some Chinese citizens, mainly overseas students, were recently stranded in countries such as Ethiopia, Bangladesh, and Cambodia. As soon as the problem occurred, Chinese ambassadors and consul generals in these countries arrived at airports and made all-out efforts to provide consular protection. After active communication and coordination with airlines, airports and local governments, we made proper accommodation arrangements for the citizens and solved their problems efficiently. The departments of foreign affairs and civil aviation kept close coordination and adopted urgent measures for pressing issues, sending temporary flights to bring home the overseas citizens. They were very satisfied with the solutions, saying, "Thank our motherland. We love our motherland. We love the embassy." These are their true feelings.

Here I'd like to remind overseas Chinese students and other Chinese citizens living abroad to pay close attention to the entry policies of countries while in transit and contact airlines for related information in advance. It is strictly necessary to check your flights, especially connecting flights, with the airlines before buying tickets and boarding. If you get stranded while traveling, please contact local Chinese embassies and consulates for assistance or call the 24-hour consular protection hotline. The Ministry of Foreign Affairs and China's embassies and consulates will do our utmost to provide consular assistance to Chinese citizens. Thank you.

Economic Daily:

If chartered flights are arranged to help overseas Chinese students return home, how can we ensure they are safe during their flight and after they arriving at the airport? Thank you.

Zhang Yang:

Thank you. To make sure they stay healthy, experts suggest that they should carry personal protection equipment with them, such as masks and quick-drying hand sanitizer, if available. They should avoid touching their mouth, nose and eyes with their hands, and they should cover their mouth and nose with a tissue when sneezing or coughing; they can also sneeze into their elbow. Masks should be worn throughout their return trip, except for when they pass through the security check. After completing facial recognition, they should put their masks back on immediately and finish the security check as quickly as possible. Stairs or escalators are preferred, and they should keep at least one meter of distance between themselves and others. Face-to-face communication should also be avoided. If they do choose to take elevators, some distance must be maintained between passengers and crowds should be avoided. They should also pay attention to hand hygiene and avoid directly touching public facilities, such as doorknobs or elevator buttons; if they do, they should wash their hands or use quick-drying hand sanitizer as quickly as possible. Masks should be worn during their flight and while waiting for it, and during this time they should try to eat as little as possible. Thank you.

Hu Kaihong:

The next question will be the last question for today.

China Education Television:

We've noticed that some overseas Chinese students have experienced panic and anxiety due to the pandemic. Could Mr. Tian share with us some suggestions from the Ministry of Education for providing psychological assistance to these students? Thank you.

Tian Xuejun:

You've raised a fairly important question. In terms of psychological counseling, the Ministry of Education has coordinated relevant resources from universities and colleges, making counseling services available to overseas students 24 hours a day. Education administrators in many places and Chinese embassies and consulates in many countries have also set up a helpline for overseas students, providing counseling services for them and their parents in a timely manner. As you may notice, many Chines ambassadors and consul generals have issued open letters to overseas Chinese citizens, and they are also communicating with overseas Chinese students via video chats, building confidence among them amid the pandemic.

We hope that overseas students can set up the concept of preventing the pandemic in a scientific manner, put this concept into practice with the help of Chinese embassies, and build the confidence to overcome it. In accordance with suggestions from the WHO and epidemiologists, we hope overseas students will avoid traveling as much as possible so as to eliminate cross infection. We also hope that these students’ parents and family members who are in China can share with them messages of positive energy that will help them get rid of unnecessary panic and anxiety; meanwhile, they should also do their part in epidemic prevention and control in China. Thank you. 

Hu Kaihong:

Today's press conference is hereby concluded. Thank you all. 

.

Read in Chinese

Speakers:

Ma Xiaowei, member of the Central Guidance Team, and minister of the National Health Commission;

Yu Xuejun, member of the Central Guidance Team, and vice-minister of the National Health Commission;

Chang Jile, director of the Bureau of Disease Prevention and Control, National Health Commission;

Jiao Yahui, deputy director of the Bureau of Medical Administration, National Health Commission;

Luo Huiming, chief physician of the Chinese Center for Disease Control and Prevention.

Chairperson:

Shou Xiaoli, Information Bureau of the State Council Information Office

Date:

March 31, 2020

Shou Xiaoli:

Good afternoon, everyone. Welcome to the press conference held by the State Council Information Office in Wuhan, Hubei province. Today, we have invited Mr. Ma Xiaowei, a member of the Central Guidance Team, and minister of the National Health Commission (NHC); Mr. Yu Xuejun, a member of the Central Guidance Team, and vice-minister of the NHC; Mr. Chang Jile, director of the Bureau of Disease Prevention and Control, NHC; Ms. Jiao Yahui, deputy director of the Bureau of Medical Administration, NHC; and Mr. Luo Huiming, chief physician of the Chinese Center for Disease Control and Prevention (CDC). They will introduce the progress being made by the Central Guidance Team in organizing and guiding work related to epidemic control and medical rescue. Later, they will answer your questions. 

First, I'll give the floor to Mr. Ma Xiaowei.

Ma Xiaowei:

Good afternoon, friends from the media. Since the COVID-19 outbreak, the CPC Central Committee with Comrade Xi Jinping at its core has consistently put people's safety and health first. General Secretary Xi Jinping has been personally deploying, commanding and leading the battle against COVID-19. Since Jan. 27, the Central Guidance Team has been stationed in Wuhan and effectively guiding, organizing and promoting the work related to epidemic prevention and control in Hubei province. We have taken a two-pronged approach to focus on both treatment and community-level prevention to contain infections, treat the infected and control the variables. With much effort, we have essentially cut off domestic transmission across the whole nation with Wuhan as the main battlefield, which means we have achieved a milestone in epidemic control.

With patient treatment as the top priority, the Central Guidance Team has made special deployments on dispatching medical team, increasing available hospital beds, treating severe and mild patients, applying traditional Chinese medicine (TCM), monitoring and managing recovered and discharged patients, and preventing hospital-acquired infections. We have worked from two aspects: management and treatment. We have overcome one difficulty after another and conducted much research. To date, more than 63,000 patients in Hubei province have now recovered, with a recovery rate of over 93%.

With regards to hospital management, we have organized more than 42,600 medical workers from NHC's subordinated and administered hospitals, hospitals of provinces across the country and hospitals of the PLA to form over 340 medical teams. They took equipment and supplies to assist Hubei province. Among them were more than 15,000 specialists in intensive care, respiratory medicine, circulatory medicine and anesthesiology. 10 provinces sent 20% of their intensive care specialists.

The Central Guidance Team carried out sophisticated coordination and dispatch work, matching medical treatment capacity with the treatment tasks and degree of difficulty. The team made resolute decisions to build Fangcang shelter hospitals and designated hospitals; accelerated the revamp of existing hospitals; and expanded medical resources via various channels. Due to these actions, the health system was able to withstand the shock of the rapidly increasing amount of cases at the peak of the outbreak. We adopted a model that directed national medical teams to take over whole wards, while provincial, regional and local-level medical staff took charge of specific departments. Also, joint medical affairs offices, nursing departments and hospital infection control offices were established, and joint expert teams were formed at the national, provincial and municipal levels. We implemented five systems: the daily assessment of patients; discussions and group consultations about difficult diseases; regular visits to patients; holistic nursing; and discussions about cases resulting in death . We revised our diagnosis and treatment guidelines seven times, revised the guidelines for severe cases three times, and standardized treatment plans.

In terms of clinical treatment, we made efforts to make it more targeted, creative and holistic, and achieved "five combinations." The first was a combination of basic medicine with clinical practice. We adopted targeted treatments based on damage to organs shown by pathological anatomy. We grasped major problems in clinical practice, paying special attention to the early stages of the illness; identifying severe cases;. adopting invasive mechanical ventilation and oxygen supplies; providing supporting treatment; and using anticoagulants. We implemented multiple organ protection, and ensured that we treated the disease in the early stages and in a targeted way. 

Second, we combined frontline treatment with rear support, giving play to the advantages of rear resources, using information technology to conduct remote multidisciplinary consultations, and providing comprehensive guidance on treatment timing, means and dosage.

Third, we combined medical treatment and nursing. We placed a premium on basic nursing, critical nursing, specific nursing and psychological nursing to find changes in patient conditions as soon as possible. We paid special attention to details and took good care of the patients. 

Fourth, we combined medical treatment and management. We established a management system of joint diagnosis and treatment and an efficient operation mechanism, providing a reliable institutional guarantee for treatment. 

Fifth, we combined traditional Chinese medicine (TCM) and Western medicine, involving TCM in the whole process of prevention, diagnosis and treatment and recovery. Meanwhile, we paid attention to the treatment of mild cases, and reduced the viral load to prevent mild cases from progressing into severe cases. We also rigorously implemented measures preventing and controlling hospital infection. None of our 40,000 assisting medical staff contracted the disease, which is most comforting of all.

In terms of epidemic control, the Central Guidance Team in Hubei has precisely identified changes in different phases of the epidemic situation, and adjusted its priorities and response measures accordingly. It dispatched nearly 1,000 top public healthcare workers, community healthcare personnel and testing staff from across the country to Hubei, forming 36 epidemic prevention teams and working alongside the local disease control personnel. Vice Premier Sun Chunlan personally promoted wide-ranging investigations in all subdistricts and communities across Wuhan city, identifying more than 6,000 confirmed or suspected COVID-19 cases. All of these have been admitted to hospitals, effectively preventing the spread of the disease in communities, and playing a decisive role in containing it. 

With an emphasis on nucleic acid testing, we have managed to increase the detection capacity from 300 to 35,000 people a day, and the interval for obtaining test results has been shortened from six days to 4-6 hours. We have endeavored to ensure that testing covers all those necessary, and that all cases are tested the same day. With all residential communities and villages adopting closed-off management, we have carried out work there on environmental improvement, disinfection and popularizing knowledge of epidemic prevention and control measures. Based on extensive practices, the disease control staff have revised the prevention and control plans six times, and summarized distinctive Chinese experiences as follows. We have focused on epidemic prevention in communities and fever clinics, and carried out face-to-face epidemiological surveys. We have ensured each case is "reported through the online direct reporting system within two hours and tested within 12 hours," and "conducted an epidemiological survey for each patient within 24 hours." We have emphasized the prevention and control work in key areas and locations, and for key populations. We have implemented the early detection, reporting, quarantine and medical treatment measures. Focusing on the four categories of personnel – confirmed and suspected COVID-19 cases, people with fever, and those in close contact with coronavirus infections – we have admitted them to hospitals, provided medical treatment, and tested and quarantined them as necessary. We have implemented a responsibility system for community control, distributed epidemic protection supplies to disadvantaged groups, and ensured our investigation, control, supervision, publicity and education work progresses smoothly in communities while showing our concern and love for residents. We are unswervingly carrying out the above requirements, and gradually seizing the initiative in epidemic prevention and control.

At present, as the epidemic spreads rapidly overseas, we are focused on guarding against imported COVID-19 cases and a rebound in domestic cases according to the requirements of the CPC Central Committee. We will carry out the epidemic prevention and control work at home with caution, and implement targeted measures to ensure that every household and individual adheres to them. We will continue to put medical treatment first. There are nearly 1,500 infections at present in Hubei, with severely and critically ill patients accounting for one third, which renders treatment very difficult. The medical team will spare no effort in carrying out its treatment work. As long as there is a glimmer of hope, we will do our best to save every life. We will take targeted measures to effectively respond to imported infections and improve the prevention and control strategy along the whole route from overseas to the country, and to each home. We will investigate every imported case and conduct treatment immediately. As the COVID-19 situation continues to improve in the country, we will not allow our hard-won results to reverse.

Finally, I would like to say that in the magnificent fight against COVID-19, large numbers of medical workers clad in white rushed to the frontlines. Their organization and management capability, professional qualifications as well as medical ethics have been thoroughly tested. It has been proven that they are a group of personnel with solid political faith, excellent capabilities and noble medical ethics, whom the Party and the people can fully rely on. During the medics' return, the Party and the people showed their appreciation to all of them, and having worked in Hubei, they deeply felt the sincere gratitude of the people there. Under the strong leadership of the CPC Central Committee, all staff working within the national health system will make unremitting efforts in the epidemic prevention and control work to achieve an ultimate and great victory against COVID-19. Thank you.

Shou Xiaoli:

Thank you, Mr. Ma. Now we will take questions. Today, we will still be doing this via video link. Please identify your media organization before asking questions.

People's Daily:

Currently, daily new imported COVID-19 cases have surpassed new domestic confirmed cases. What measures will the NHC take to prevent imported cases? Thank you.

Ma Xiaowei:

The prevention of imported cases is a very important task facing the country right now. I would like to invite Mr. Yu Xuejun to answer your question.

Yu Xuejun:

Thank you for your question; it is indeed a question we are all concerned about. We all know that the current situation regarding the epidemic prevention and control work in China is moving in a positive direction. Although there are still some sporadic cases, the spread of the epidemic in the country has been generally contained. However, at the same time, the rapid spread of the epidemic outside China has brought great pressure to our epidemic prevention and control work. In accordance with the overall deployment of the CPC Central Committee and the State Council, the NHC will coordinate with relevant departments of the Joint Prevention and Control Mechanism of the State Council, and carry out the overall prevention and control strategy on preventing imported cases and a rebound of the epidemic at home. We will prevent and control the whole chain of the spread of the epidemic from foreign countries to the border, and from the border to the door of every household. We will strengthen seamless connection and closed-loop management to prevent imported COVID-19 cases from overseas. We will take the following measures:

First, we will control the source of the infection. We will timely classify and transfer overseas arrivals, promote precise management of key population groups, and transfer confirmed cases, suspected cases and overseas arrivals with fevers discovered in ports to designated hospitals for further diagnosis and treatment.

Second, we need to block the transmission route of the virus. We should enhance the tracking of people entering the country, build interregional collaboration mechanisms and set up a "point-to-point" system to transfer them. We need to ensure the seamless transfer of passengers to their destination and lower the risk of virus infection and spread during transportation. Supported by information technology, we have carried out dynamic management for inbound personnel and enhanced their 14-day quarantine medical observation. If they display symptoms, they will be immediately transferred to designated hospitals to receive further diagnosis and treatment.

Third, we should prevent the virus spreading at the community level. Local communities must register inbound personnel who have just returned and conduct follow-up work and grid management for them. By strictly adhering to the requirements, local communities have also closely monitored the health condition of those inbound arrivals during the 14-day quarantine. If any symptoms are shown, they will be transferred to designated hospitals to receive further diagnosis and treatment.

At the same time, we should strengthen the management of close contacts. This refers to the management of people who have had close contact with confirmed cases. For inbound confirmed cases and those who are asymptomatic but tested positive, public health departments should work together with relevant departments to conduct epidemiological tests on them according to the regulations. Quarantine and medical observation should be carried out on close contacts in order to reduce the possibility of spreading the virus. Thank you.

Nihon Keizai Shimbun:

Around 500 patients, including those with both severe and critical conditions, are still in Hubei now. What is the treatment plan for them? Thank you.

Ma Xiaowei:

I would like to give this question to Ms. Jiao Yahui, the specialist from the National Health Commission.

Jiao Yahui:

Thank you for your question. Under the direct leadership of General Secretary Xi Jinping and the direction of the Central Guidance Team, Hubei province has made great progress in its medical treatment fighting COVID-19. The number of patients hospitalized for COVID-19 in Hubei continues to decrease and the accumulative cure rate has reached 92%. As of March 30, the number of severe cases has dropped from its peak of over 9,000 to the current number of 493. Both severe and critical cases had the same features: They are seniors with multiple underlying health conditions. The duration of the diseases lasts for a long time, and multiple organs are harmed. Some cases have severe infections with huge difficulties in saving and treating them. So far, among the severe cases in hospital, 82 are trachea intubated, 13 are on extracorporeal membrane oxygenation (ECMO), 33 are receiving prone position ventilation, and 38 are undergoing continuous renal replacement therapy (CRRT). In order to treat these severe patients well, we are currently undertaking the following measures:

First, we took additional measures to implement the principle that patients are classified and given concentrated treatment, quality resources are pooled and experts are called together for the virus fight. While concentrating patients with severe conditions in high-level hospitals, we also tried to transfer them to special wards managed by national medical teams to optimize medical resources and strengthen capacity for treating severe cases.

Second, we have further strengthened life support and multi-organ support. Most of the severe and critically ill patients have multiple organ impairment. Apart from the lungs, they may also suffer from damage to other organs, such as the heart, kidneys, and the liver, as well as problems with their immune and circulatory systems. While applying ECMO (extracorporeal membrane oxygenation), invasive ventilation, prone position ventilation, and CRRT (continuous renal replacement therapy), we have also provided nutritional support to improve their immunity and circulation. Various other measures have also been taken to strengthen life support.

Third, we strengthened disease monitoring and patient care. For critically ill patients whose conditions keep changing, we have enhanced holistic care and looked closely at disease progression. For patients treated with ECMO, endotracheal intubation, prone position ventilation, and CRRT, we have strengthened special care. Meanwhile, we have also enhanced basic care, which, together with special care, plays a vital role in improving treatment efficacy.

Fourth, we upgraded the expert inspection system by sending national experts to stay at hospitals. We dispatched national experts to designated hospitals that receive severe and critically ill patients so that they can work with the experts of those hospitals in the treatment and rescue of patients. In particular, they can work together to develop a personalized treatment plan for each patient.

Fifth, we established a case discussion system. We organize daily case discussions where military medical and civilian experts across the country make an in-depth analysis of their treatment. At this point, the recovery rate of severe and critically ill patients has increased from 14% to 88%. Since the beginning of March, 100 to 150 severe cases have turned into mild cases each day. Thank you.

Hong Kong Bauhinia Magazine:

We have noticed that China has recently held a series of bilateral or multilateral conferences to share its experience in fighting the COVID-19 outbreak. President Xi Jinping put forward four proposals to win the battle against the pandemic at the Extraordinary G20 Leaders' Summit. How will the National Health Commission translate these proposals into action? Thanks!

Ma Xiaowei:

The COVID-19 pandemic is largest disaster so far faced by humanity in the 21st century. There is an urgent need for countries around the world to strengthen cooperation and unity and work together to build the most thorough network for joint prevention and control. China's fight against the pandemic has won wide support from the international community. Many countries, regions and international organizations have shown support by sending messages of sympathy and donating medical materials.

China has passed the most difficult and challenging period in epidemic prevention and control. We therefore have sympathy for other affected countries and regions. Under the arrangement of the CPC Central Committee，we have sent medical teams to many countries including Italy, Serbia, Cambodia, Pakistan, Venezuela and Laos. These teams are providing guidance and consultation on the epidemic fight. We have also sent medical materials and equipment to many countries and regions including nucleic testing kits, antiviral drugs, traditional Chinese medicines, ventilators and patient monitors, as well as protective items such as medical protective suits and face masks. We have established online "Knowledge Centers," held briefings with the WHO, and organized over 40 videoconferences with more than 100 countries and regions to enable targeted and in-depth communications.

China has also donated US$20 million to the WHO to support it in carrying out the fight the COVID-19 pandemic, and to help developing countries improve their public health emergency responses. These measures let the world see a united and resilient China which is ready to shoulder responsibilities and benefit the world. We have therefore gained a deeper understanding of the practical meaning of President Xi's grand vision of "building a community with a shared future" which transcends time and space.

On March 26, President Xi delivered an important speech at the Extraordinary G20 Leaders' Summit. Sticking to the idea of "a community with a shared future", Xi put forth a series of important proposals on strengthening international cooperation, which injected a huge amount of confidence and strength into the world. The National Health Commission will earnestly implement President Xi's four-point proposals and the spirit of the summit. We will continue to strengthen international cooperation and steadfastly support the leading role of the WHO. We will support the G20 to boost information sharing as well as policy and action coordination. We will actively prepare ourselves for a G20 health ministers' meeting and strengthen cooperation on drugs, vaccines and epidemic control. We will consolidate the network for joint prevention and control under the regional and multilateral frameworks such as the China-Japan-South Korea cooperation mechanism, the China-ASEAN cooperation mechanism and the Shanghai Cooperation Organization. We will guide the medical teams sent to over 50 countries to carry out epidemic prevention and control. We will, under the arrangement of the CPC Central Committee, provide support and help within our capacity to the countries hardest hit by the outbreak. China can also learn from the epidemic prevention and control measures taken by other countries. We will share our strategies, methods, technologies, standards, and cases in fighting the COVID-19 without reservation, and hope other countries and regions can also share their experiences in an effort to contain the pandemic as early as possible and jointly safeguard global security.

The Straits Times:

Asymptomatic cases have not been included in China's official statistics. But there is a growing concern that these asymptomatic cases could grow and cause a second wave of infection as control measures begin to relax. How will the National Health Commission deal with this phenomenon?

Ma Xiaowei:

Recently there has been growing concern about asymptomatic infections. Let's invite Chang Jile, director of the National Health Commission's Disease Prevention and Control Bureau, to answer this question. 

Chang Jile:

Thank you for your attention to this phenomenon. The commission has always paid close attention to the situation of infected people without symptoms and insisted on the strict management of asymptomatic cases and their close contacts. Asymptomatic COVID-19 patients refer to those who do not show any clinical symptoms, including fever, cough, and pharyngalgia, and have no clinically identifiable symptoms or signs, but their test results for COVID-19 are positive.

Asymptomatic cases can mostly be identified through active monitoring. There are four ways of monitoring these cases. The first is the medical observation of close contact. The second is the investigation of clustered COVID-19 outbreaks. The third is tracking the source of the infection. The fourth is the detection of people who have traveled or lived in regions where COVID-19 cases have continued to spread.

In terms of report management, the commission has asked local health authorities to strengthen the prevention and control management of asymptomatic patients. The first is to enhance the management of information reporting. Medical and health institutions at all levels are required to make online reporting within two hours after asymptomatic infections are found. The second is to carry out epidemiological surveys in a swift manner. County and district level disease control centers are required to complete case investigations within 24 hours after receiving the report of asymptomatic infection, carry out timely registration of close contacts, and promptly complete case reports through the infectious disease reporting management system. The third is to take strict measures of quarantine management. Infected people without symptoms are required to undergo a 14-day quarantine. After their 14-day quarantine, they will be released if two consecutive nucleic acid tests at an interval of 24 hours are found to be negative. If their test results are found to be positive, quarantine and medical observation should continue. Close contacts of asymptomatic patients are also required to undergo a 14-day quarantine and medical observation. The fourth is to standardize medical treatment. If there are clinical symptoms during their quarantine and medical observation, asymptomatic patients should be counted as confirmed cases and transferred to designated hospitals for standard treatment in a timely manner. 

In response to public concerns about asymptomatic infections, we encourage medical experts to respond and discuss cases in mainstream media. From April 1, we will publish reports, outcomes, and the management of asymptomatic cases in our daily briefing and respond to social concerns promptly. Next, we hope to replicate the spirit of the meeting convened by the leading group of CPC Central Committee on coping with COVID-19 and highlight the monitoring, tracking, quarantine, and treatment of asymptomatic cases. We will accelerate our pace to collect a certain percentage of samples from heavily affected areas to carry out surveys and epidemiological analyses to improve prevention and control measures. Thank you.

Southern Metropolis Daily:

Recently, the NHC and the Hubei provincial epidemic prevention and control headquarters conducted large-scale training together on the epidemic prevention and control, and adopted a "1+2+3+N" training model. What is the purpose of conducting large-scale epidemic prevention and control training under the current circumstances? How has the training work progressed so far? Thank you.

Ma Xiaowei:

NHC Vice Minister Yu Xuejun will take this question.

Yu Xuejun:

Thank you for asking this question, and thank you for your attention regarding the epidemic prevention and control training. In the fight against COVID-19, nearly 1,000 medical professionals from disease control departments and the field of public health from all over the country headed to Wuhan to help. They made great contributions to the epidemic prevention and control work, while accumulating a lot of experience.

In order to consolidate the hard-won achievements in epidemic prevention and control, in accordance with the requirements by the Central Guidance Team in Hubei, the NHC, in conjunction with the Hubei provincial COVID-19 epidemic prevention and control headquarters, launched a weeklong series of large-scale epidemic prevention and control training activities in the province in late March.

The purpose of this large-scale training was very clear. On the one hand, based on the current situation, we aimed to promote communities' forward momentum in epidemic prevention and control, put the focus of their work at the grassroots, and improve the level of epidemic prevention and control in grassroots communities. On the other hand, focusing on long-term progress, we aimed to promote the improvement of the Hubei provincial epidemic prevention and control team's abilities, and cultivate a local team that is able to win an epidemic battle. The large-scale training lasted a week and adopted a "1+2+3+N" model. "1" refers to a training session with medical professionals, whereby National and provincial experts conducted training across the whole province. "2" refers to two special themed training courses centered around the epidemic prevention and control. "3" refers to the three key fronts, as the training was focused on communities, the resumption of work and production, and teaching practical operations at special key areas and locations. At the same time, in accordance with the individual needs of each region, there was support for "N," or "numerous," targeted customized training sessions.

Regarding the progress of the training you mentioned, I have a set of data here. During this large-scale training, senior experts at the national and provincial level went to the grassroots, conducting hands-on training and on-site guidance for 5,597 disease control, public health and medical personnel in all counties, towns and districts in 17 cities and prefectures in a point-to-point manner. A total of 444 special training sessions and 262 customized training sessions were held in cities, counties and districts, training more than 48,000 people in a concentrated manner and more than 21,000 people in on-site practical operations, while more than 5,000 lectures were held during the sessions.

The large-scale training, through lectures, has helped regions and various departments to further enhance risk prevention awareness and continuously improve epidemic prevention and control plans throughout Hubei province. Through drills, the training uncovered loopholes and made up for shortcomings and weaknesses, laying a solid foundation for comprehensively building up the grassroots community network. Through training, we could improve both the epidemic prevention and control abilities and daily work abilities of grassroots public health teams. We could also build a stronger defensive line to protect the lives and guarantee health of the people. Thank you.

CCTV:

I have two questions. First, how likely are sporadic cases tore-emerge, given the newly confirmed case in Wuhan on March 24, despite the city having experienced zero growth for several consecutive days? Second, what measures are being adopted to prevent potential risks caused by increased mobility when exits from Hubei province are reopened and transportation in Wuhan has been partially resumed? Thank you.

Ma Xiaowei:

Please allow me to invite Chang Jile, director of the Disease Prevention and Control Bureau of the NHC, to answer your questions.

Chang Jile:

Thank you. The transmission of the virus has been basically halted in Wuhan, thanks to the strenuous efforts made under the strong leadership of the CPC Central Committee and the State Council as well as the guidance by the the Central Guidance Team. As you said, there has been good momentum whereby confirmed and suspected cases have been reduced to zero for several consecutive days across the entirety of Hubei province, including Wuhan. However, we must be aware that "zero growth" does not equal "zero risk." Potential risk cannot be totally ruled out as the possibility of sporadic or cluster infections remains when the frequency of mobility and the chances of exposure to external pathogenic sources have increased following the removal of restrictions on exits from Hubei province and with the resumption of local work, production, schools and transportation. Therefore, we should still be highly vigilant, and neither lax in thought or practice. 

First, we need to precisely calibrate our prevention and control work, acting in accordance with the facts, laws and scientific principles rather than being overwhelmed by the pursuit of "zero growth." Second, with concerted efforts and group work, we will take a firm grip on implementing every concrete measure regarding the prevention and control work and ensure that every individual realizes and practices their duty. Third, we will intensify our efforts to prevent, control and monitor the disease by means of discovering, reporting, quarantining and treating people in a timely fashion, taking control of confirmed and suspected cases and putting those developing fever or close contacts under medical observation. Meanwhile, we will highlight the work conducted in key regions, places and among certain groups of peoples. Reports should be delivered directly online within two hours once new cases are confirmed, test results from laboratories should be produced within 12 hours, and the epidemic disease investigation should abide by "the restrictions of time in three phases" within 24 hours. Fourth, the requirements issued to fever clinics and designated medical institutes in terms of categorized treatments should be strictly followed to prevent the epidemic from returning. Fifth, the public should be allowed easy access to updates on the epidemic situation in line with timely, accurate, open and transparent principles. Sixth, multiple platforms should be used to guide people how to adopt healthier lifestyles, such as, by washing hands, ventilating rooms, wearing face masks and avoiding large gatherings, to safeguard people's physical and psychological conditions. Thank you.

Sputnik:

I have two questions. First, in addition to COVID-19 patients, are hospitals in Wuhan city and Hubei province at large now able to accept other patients? Have the medical institutions there resumed their normal work? Could you give some data in details? What's the percentage of hospitals that have resumed normal medical care and when will they come into normal operation completely? Second, in light of NHC's experience and views, what's the possibility that a patient will be re-infected with the novel coronavirus after being discharged from hospital with a normal temperature? Can a cured patient acquire immunity to the virus? Thank you.

Ma Xiaowei: 

Ms. Jiao Yahui, a commissioner on supervision at NHC's Bureau of Medical Administration, will take the first question, and Mr. Luo Huiming, a CDC chief physician, will take the second question.

Jiao Yahui:

Thanks for your questions. I will answer your first question. Since the outbreak of epidemic, while guiding the medical treatment of COVID-19 patients in Wuhan and Hubei province, we have paid attention to the normal medical needs of other patients. At the peak of the epidemic, we directed some hospitals in Wuhan city and Hubei province to be exclusively used for patients in need of continuing medical care, such as maternal pregnancy care and hemodialysis for patients with chronic renal failure.

With the improving epidemic situation in China, more designated hospitals have completed their medical care tasks and have gradually restored their normal order of medical care. We have instructed practices of online diagnosis and treatment, long-term prescriptions for chronic diseases and drug distribution in Wuhan city and Hubei province to meet the needs of patients with common and frequently-occurring diseases. According to the reports of Wuhan city and Hubei province, as of March 30, a total of 62 hospitals in Wuhan have resumed normal medical care, accounting for 40 percent of hospitals of secondary grade and above. Among these hospitals, a total of 60 hospitals have restored outpatient services and 53 hospitals have reopened emergency services, receiving 25,000 visits per day. A total of 26,500 beds were available in the 62 hospitals, accounting for 47 percent of total beds and 32 percent of beds available in Wuhan's secondary and higher hospitals. In breakdown, ten of these hospitals have reopened over 80 percent of their beds, six of which have reopened all their beds. They are mainly comprehensive hospitals at the district level and maternal and childcare hospitals. There are 14,300 inpatients currently in the 62 hospitals, accounting for 54 percent of the total beds available.

According to statistics, 120 patients are currently receiving dialysis treatment in Tongji Hospital in Wuhan every day. This figure exceeded that of the same period last year. In addition, over 20 surgeries have been performed on a daily basis in Wuhan Union Hospital and Zhongnan Hospital of Wuhan University; and more than 70 births have taken place in Hubei's Maternity and Child Health Care Hospital every day. Outside of Wuhan, 75 cities and counties in Hubei province deemed low-risk have resumed normal medical services. Next, we will provide guidance to Hubei province as well as Wuhan city to free up further beds in hospitals, offer outpatient services, and expand the supply of medical services. Thank you.

Luo Huiming:

Thank you for your concern about the discharged patients. Just now, you mentioned that patients would be discharged from hospital once their body temperature returned to normal. In fact, clinicians make their decisions based on the NHC's diagnosis and treatment plan for COVID-19. Patients will only be discharged when they meet the standards in four categories concerning body temperature, symptoms, CT imaging and two consecutive negative nucleic acid tests. In addition, discharged patients are required to undergo a 14-day period of quarantine for medical observation and health checks.

For those infected with the novel coronavirus, specific antibodies will be gradually developed in their bodies to neutralize and clear the virus, allowing these patients to recover. After they are discharged from hospital, they will have also developed immunity from the virus. As such, normally speaking, they will not be re-infected.

Here are two examples. First, some discharged patients have tested positive for the viral nucleic acid. There are differences in individual cases, although, we have not found any cases in which discharged patients who have recovered then infected others or spread the virus to others again. Second, clinically speaking, there is the plasma therapy using plasma from recovered COVID-19 patients. As these patients recover, their plasma contains antibodies and develops immunity. Therefore, their plasma can be used to save other COVID-19 patients. Here, I would like to call for recovered patients to donate their plasma as long as they meet the clinical standards in order to help others recover. Thank you.

Shou Xiaoli:

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

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Read in Chinese

Speakers:

Luo Zhaohui, vice minister of foreign affairs;

Xu Nanping, vice minister of science and technology;

Zeng Yixin, vice minister of the National Health Commission;

Deng Boqing, vice chairman of the China International Development Cooperation Agency.

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

March 26, 2020

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference being held by the State Council Information Office (SCIO). As the novel coronavirus has been rampaging through many countries around the world, strengthening international cooperation has become a matter of utmost urgency. Today, we have invited Mr. Luo Zhaohui, vice minister of foreign affairs; Mr. Xu Nanping, vice minister of science and technology; Mr. Zeng Yixin, vice minister of the National Health Commission (NHC); and Mr. Deng Boqing, vice chairman of the China International Development Cooperation Agency (CIDCA), who will brief you about the cooperation between China and the international community in fighting COVID-19. They will also answer your questions. First, let us hear from Mr. Luo.

Luo Zhaohui:

Thank you. It is my pleasure to be here and share with you China's efforts to fight the novel coronavirus in terms of international cooperation. Since the start of the COVID-19 outbreak, under the personal command and deployment of President Xi Jinping, the Chinese people have been racing against time in a fight against the epidemic. After the whole country's arduous effort, our domestic epidemic prevention and control situation continues to show a positive trend, prompting an acceleration in the resumption of life and work. This once again demonstrates the notable strength of the leadership of the Communist Party of China as well as socialism with Chinese characteristics. China has not only managed to curb the spread of COVID-19 domestically, but also buy the world time, gain experience and provide assistance in the global fight against COVID-19. 

While leading the domestic effort to prevent and control the novel coronavirus, President Xi Jinping has also attached great importance to the global fight against COVID-19, commanding us to participate in it and carry out international cooperation accordingly. President Xi Jinping has made hands-on efforts, meeting and holding talks with Cambodian Prime Minister Samdech Techo Hun Sen, Mongolian President Khaltmaa Battulga, Pakistani President Arif Alvi, and WHO Director-General Tedros Adhanom Ghebreyesus during their special visits to China. In almost two months, through "telephone diplomacy," President Xi Jinping has conducted 26 phone calls with 22 leaders of foreign countries and international organizations. He also sent messages of sympathy to the leaders of South Korea, Italy, France and Spain, and replied to the letters from Bill Gates and other foreigners who are friendly to China. President Xi Jinping will also take part in a special G20 leaders' summit tonight on responding to the COVID-19 pandemic. It has been clearly pointed out by President Xi Jinping that the international community should step up its efforts and act to carry out effective cooperation with a joint prevention and control mechanism, so as to build a strong synergy and curb the pandemic. The international community truly feels the unwavering spirit of cooperation and responsibility of the Chinese leadership. In addition, Premier Li Keqiang talked over phone with the leaders of Germany and the European Commission. State Councilor and Foreign Minister Wang Yi has also conducted 57 phone calls with foreign ministers and dignitaries of 40 countries. 

Love knows no boundaries. China has received valuable support from the international community during the most difficult time in its fight against COVID-19. Leaders of over 170 countries as well as more than 50 international and regional organizations have sent messages of sympathy and support to China's leaders. A total of 79 countries and 10 international organizations have also provided the Chinese people with great assistance during this period.

Just as the situation surrounding the epidemic prevention and control in China saw positive improvement, COVID-19 was declared a pandemic and has rampaged through many countries around the world. Currently, Europe remains the epicenter of the COVID-19 pandemic, while the situation in the United States is still severe and that in Asian countries is not optimistic. In addition, there is a risk of possible spread of COVID-19 in Africa. 

"A drop of water in need shall be returned with a spring in deed." China sympathizes with countries suffering from the COVID-19 pandemic, and is offering help and providing assistance within its ability. The Chinese government has pledged to provide emergency assistance, including medical supplies such as test reagents and face masks, to over 80 countries as well as international and regional organizations such as the WHO and African Union. China has also donated US$20 million to the WHO, supporting it in playing a better coordinating role in international action against the pandemic. Local governments, enterprises and private institutions in China have also lent a helping hand to the hardest-hit countries.

We share our experience in epidemic prevention and control with other countries by providing multilingual prevention and control measures, as well as therapeutic plans; holding international conferences to exchange ideas; hosting video conferences with foreign health experts; sending medical expert teams to countries including Iran, Iraq, Italy, Serbia and Cambodia; and cooperating with relevant countries on vaccine research as well as drug development. Thanks to China's initiative, the Special ASEAN-China Foreign Ministers' Meeting on Coronavirus Disease (COVID-19) was held successfully in Vientiane, Laos. Foreign Ministers of China, South Korea, and Japan held a video conference to discuss issues related to COVID-19. One outcome included China and South Korea specially establishing a joint prevention and control mechanism to cope with the pandemic.

China's good will and efforts have been highly commended by the international community. Serbian President Aleksandar Vucic and Hungarian Prime Minister Viktor Orban went to airports to personally welcome Chinese medical team who had brought donated medical supplies. The arrival of a team of Chinese medical experts at the Phnom Penh International was broadcast live on the official Facebook page of Cambodian Prime Minister Samdech Techo Hun Sen, which garnered 600,000 views. Italian Foreign Minister Luigi Di Maio noted that Chinese health experts and the aid they had brought "will help save Italy."

WHO Director-General Dr. Tedros said that China is doing the right thing and that it's that kind of solidarity we need. Solidarity, solidarity and more solidarity. UN Secretary General Guterres also told President Xi Jinping that the United Nations appreciates China's assistance in fighting the epidemic in countries currently facing difficulties. China's support is vital to multilateralism and looks forward to China's continued leadership in international affairs.

Currently, the pandemic is still spreading around the world. Effectively preventing imported cases has become the primary task of China's epidemic prevention and control.

In the era of globalization, the interests of human society are highly integrated. We are intertwined and interdependent, with responsibilities shared together. As President Xi Jinping pointed out, viruses recognize no national borders and epidemics do not discriminate between races. COVID-19 once again proves that human beings live in a community of shared future. China will continue to firmly adhere to the concept of building a community with a shared future for humanity, work together with people of all countries, and strive to win the final victory in the fight against the epidemic. One of Chairman Mao's poems states that "peace would then reign over the world, with the same warmth and cold throughout the globe." We expect and believe that the days described in the poem will be realized soon. Thank you.

Hu Kaihong:

Thank you, vice minister Luo. Next, the floor is given to vice minister Xu.

Xu Nanping:

Thank you. Good morning, ladies and gentlemen. First of all, I would like to thank the media for your attention and support for scientific and technological work. Since the outbreak, the Chinese scientific and technological community resolutely implemented General Secretary Xi Jinping's instructions and established a scientific research group focusing on five areas: clinical treatment and medicine development, vaccine research, virus tracing and transmission research, testing reagents and equipment, as well as animal model development. Ten sub-groups were also set up accordingly. Our goal is to make sure that we can "trace, prevent, control the virus and treat the patients." We have been working around the clock to speed up scientific and technological research. A number of effective scientific and technological achievements have been made.

We isolated and identified the virus strain in the first place, then shared the entire genome sequence with the WHO, which provided an important basis for scientists to start work on medicines, vaccines and diagnostic studies worldwide; we have gradually deepened our understanding of the pathogenic mechanism and transmission mode of the virus, providing a scientific basis for prevention and control strategies; we quickly filtered, selected and evaluated chloroquine, fapilavir, tocilizumab and a batch of traditional Chinese medicine prescriptions, traditional Chinese patent medicines and other effective therapeutic drugs, as well as convalescent plasma therapy, stem cell therapy, artificial liver therapy, etc.; we have established various treatment plans suitable for patients at different stages of the disease; we have established and formed a testing technology system coupled with nucleic acid and antibody testing in a very short time, and continuously improved its sensitivity and convenience; we have been able to promote five parallel technical routes in the study of possible vaccines, under which the recombinant adenovirus-vectored vaccine has been undergoing clinical trials since March 16.

These achievements are hard-earned and are the result of the dedicated hard work of the Chinese science and technology community. Since the reform and opening up, China's scientific and technological innovation capabilities have been continuously improved, with continuous improvements in innovation system building.

At the same time, these achievements are also based on the experience and theoretical exploration accumulated in the struggle of humanity versus the virus. In the scientific research of epidemic prevention and control, we always adhere to the concept of a community of shared future for mankind, seeking to promote exchanges and cooperation with international counterparts, as well as in-depth communications. Every day, we receive a lot of suggestions and statements of intent to cooperate from our international peers. It is very touching. Meanwhile, we also share our scientific data, technical results and prevention and control strategies with the global scientific and technological community in a timely manner. It can be said that the spirit of helping each other who find themselves in the same boat, sharing and cooperation runs through the whole process of China's anti-epidemic science and technology research.

At present, the COVID-19 pandemic is spreading globally. Viruses know no borders. The Chinese science and technology community will continue to carry out in-depth scientific and technological research cooperation and exchanges with scientists from various countries in epidemic prevention and control, patient treatment, and basic research, share research progress and anti-epidemic experience, and work together to provide solid scientific and technological support for the globe's ultimate victory against the pandemic. Thank you all.

Hu Kaihong:

Thank you. Next, Mr. Zeng, please make your introduction.

Zeng Yixin:

Good morning, media friends. Under the deployment and command of General Secretary Xi Jinping, under the leadership of the leading group of the CPC Central Committee for COVID-19 epidemic prevention and control, as well as the joint prevention and control mechanism of the State Council, the National Health Commission attaches great importance to actively carrying out international cooperation in the fight against development of epidemics. We are sharing China's prevention and treatment experiences and technologies, and providing the aid and technical support to other countries affected by the current pandemic. Our work has been widely recognized by the international community. Let me introduce to you the main work we have undertaken recently in three aspects.

First, we are actively sharing China's experiences in the prevention and treatment of COVID-19. Our prevention and control strategies, methods, technologies, standards, and cases have been tested in actual epidemic control situations. These are also what we have explored, analyzed, and summarized through continuous practices. These experiences are very precious. China is actively sharing these with the international community according to the needs of different countries. The National Health Commission compiled a set of technical documents such as the latest versions of diagnosis and treatment plan, and prevention and control plan. We have shared them in a timely way with 180 countries and more than 10 international and regional organizations, to help maintain global health security.

Second, we organized experts for in-depth technical exchanges. The National Health Commission and the WHO jointly hosted a briefing to share China's experience on COVID-19 response. Representatives from 77 countries and seven international organizations attended the event, and over 100,000 people watched the briefing online. WHO Director-General Tedros Adhanom Ghebreyesus, U.N. Resident Coordinator in China, and World Bank officials all spoke highly of China's prevention and control efforts in video and on-site speeches. They called on countries to learn from China's experience and jointly fight against COVID-19. We established an online knowledge center and an expert pool for international cooperation in prevention, control, diagnosis, and treatment. We held close to 30 technical exchange meetings with over 100 countries and regions via video call. The video meetings were timely, comprehensive, and effective, allowing China to respond promptly to the needs of the international community and provide precise technological support.

Third, we sent medical and health experts to assist relevant countries. The experts were sent in accordance with the arrangements of the Chinese central government and at the request of the countries. The experts shared experiences, exchanged views, and provided guidance and advice on prevention, control, diagnosis, and treatment. The countries now include Italy, Serbia, and Cambodia, and we are preparing to send experts to other affected countries. We have also guided Chinese medical teams who have long stationed in 56 countries to help developing countries prevent and control COVID-19 and provide technical advice and health education to locals and overseas Chinese. Over 200 online and offline training sessions have been held. 

Next up, in line with the decisions and arrangements of the CPC Central Committee and the State Council, the National Health Commission will continue cooperating effectively with the WHO, share China's experience with the international community in various ways, and provide technical support to other countries. Playing its role as a responsible country, China joins hands with other countries in combating the virus and building a community with a shared future for mankind. Thank you.

Hu Kaihong:

Thank you, Mr. Zeng. Now, let's invite Mr. Deng.

Deng Boqing:

Thanks. Good morning, friends from the media.

Currently, COVID-19 has broken out in many countries and is still spreading. It is urgent to carry out effective international cooperation in prevention and control. Only through solidarity can we overcome the difficulties, and only with joint efforts can we beat the disease.

Assistance to other countries is an important part of international cooperation. Offering such support within capacity is crucial for China to keep with the principle of upholding justice while pursuing shared interests and live up to the vision of a community with a shared future for mankind. It is China's responsibility to support other countries in need as a major responsible country and a country that has once been helped by other countries in difficult times. By doing this, China can also control and reduce the risk of imported infections.

The CIDCA resolutely implemented the important instructions of General Secretary Xi Jinping and the decisions and arrangements of the CPC Central Committee, swiftly offered emergency humanitarian aid, and raced against the clock to provide international assistance in close coordination with China's Ministry of Foreign Affairs, National Health Commission, Ministry of Commerce, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance, General Administration of Customs, Civil Aviation Administration, and relevant enterprises.

We have sent four batches of aid to 89 countries and four international organizations. We are making implementation plans for the fifth batch.

China offers aid to hard-hit countries, countries struggling with relatively weak public health systems and virus prevention capacities, and international organizations such as the EU, the African Union and ASEAN. Echoing the WHO's call for donations, we have donated US$20 million to the organization for designated purposes including strengthening their capacities of epidemic prevention and control, and improving their public health systems.

Geographically, we have offered emergency assistance to 28 Asian countries, 16 European countries, 26 African countries, nine American countries and 10 South Pacific countries. 

The assistance we provide to foreign countries comes in the form of medical supplies and medical technologies. Medical supplies include testing kits, masks, protective suits, goggles, infrared thermometers, medical gloves and shoe covers, ventilators, and other diagnosis and treatment equipment. Medical technology assistance is carried out in the form of sending medical expert groups to share experience and advice on diagnosis and treatment. Moreover, many Chinese local governments, businesses, private institutions and individuals have provided support and assistance to foreign countries as well. 

Chinese aid supplies carry eye-catching words. For example, the logo features the words "FOR SHARED FUTURE" in English. This highlights China's aspiration and mission when conducting foreign assistance. From those donated supplies, we can see not only ancient Chinese adages like "Although miles apart, the friendship between true friends is stronger than metal and stone," but also famous lines by celebrated French author Victor Hugo, former South African President Nelson Mandela, as well as lines from Italian operas. These words show the reality of building a community with a shared future for mankind.

Our assistance to foreign countries is the most concentrated and wide-ranging emergency humanitarian action we have conducted since the founding of the People's Republic of China. It manifests the Chinese nation's ideal of building a world shared by all, and the Chinese people's generosity and readiness to help others in hard times. This has won recognition from the international community. Leaders of many countries and international organizations expressed gratitude to China for its valuable assistance and support. Pakistani President Arif Alvi paid a special visit to China to extend appreciation for China's contribution to the world, as well as the brotherhood between the two countries. Serbian President Aleksandar Vucic personally approved the Serbian message posted on China's aid materials to Serbia, greeted Chinese medics arriving in Serbia at the airport in person, and kissed the Chinese national flag. The Italian prime minister specially called President Xi Jinping to express his sincere thanks. President of the European Commission Ursula von der Leyen lauded and thanked Chinese assistance and support in a video speech in English, French and German. People from a variety of countries gave thumbs-up to China on the internet, staged light shows to support China, played the Chinese national anthem in residential communities and chanted "Thank you, China" on the streets.

As the global pandemic is developing, China finds itself amidst a crucial moment of guarding against imported cases and a rebound in indigenous cases. The Chinese government will continue to offer assistance, within its capacity, to affected countries, while carrying out epidemic prevention and control at home. 

Thank you.

Hu Kaihong:

Thank you, Mr. Deng. Now we will take questions. Please identify your media organization before asking your question.

CCTV:

What are China's expectations and propositions regarding the G20 Summit being held tonight to address the global coronavirus pandemic in particular?

Luo Zhaohui:

That is a very good question. The special G20 Summit for state leaders will draw immense attention from across the world. The outbreak of the pandemic has ravaged many regions around the globe, threatening people's lives and health and dealing a heavy blow to the global economy. The meeting is being held to meet the expectations of the international community as member countries are supposed to work in a concerted manner, making all-out efforts to fight the epidemic and avoid global economic volatility. Having played a decisive role in dealing with the 2008 global financial crisis, the G20, which is considered an important platform in promoting economic cooperation and addressing global crises, should ensure that it takes the lead in confronting the pandemic, especially when all member countries have fallen victim to the disease. This summit will be the first-ever G20 video conference, with parties involved taking the opportunity to deliberate about how to take joint action.

This will be the first major multilateral diplomatic conference that President Xi Jinping has taken part in since the outbreak of the epidemic. China has made notable progress in preventing and controlling the epidemic, and its support to other countries in their work fighting the epidemic has been lauded extensively. We expect and believe that a consensus regarding joint effort in fighting the pandemic and extensive cooperation in maintaining global economic stability can be reached at the summit, which is intended to signal stronger solidarity, deeper cooperation and closer coordination.

China is willing to work with the other G20 member countries to make concrete achievements as a result of the summit. Now, let's wait and see. Thank you.

CGTN:

Prior to the press conference of the State Council Information Office, CGTN conducted a poll of internet users overseas, asking what their major concerns were regarding the summit. Based on the data we collected, many of their questions focused on how China will share its experience. On behalf of our overseas audience, I would like to ask how China will share its precious experience in detail with the international community threatened by the rampant pandemic?

Luo Zhaohui:

Thank you for raising the question on behalf of internet users about their major concern. As the representative of the Ministry of Foreign Affairs, I would like to take this opportunity to pay tribute to them as well. When the severe epidemic spread across China, we made all-out efforts to build the initial defensive line which gave the rest of the world more time to prepare and more experience to learn from. Now, because the pandemic has spread to many regions around the world, China will on one hand continue to ramp up its efforts to prevent and control the virus domestically, and on the other hand, share its experience and solutions with the international community.

First, we have held video conferences with experts from over 100 countries and international organizations to discuss prevention and control measures for the epidemic. So far, we have held nearly 20 video conferences for experts from the WHO, the Association of Southeast Asian Nations (ASEAN), the African Union (AU), the European Union (EU), the Caribbean Community (CARICOM), the Shanghai Cooperation Organization (SCO) and more than 110 countries from the South Pacific Island Countries, Europe, South Asia, Africa and Latin America. We have shared our experience on how to identify the epidemiological characteristics, launch prevention and control measures, conduct diagnoses and treatments, and trace contaminations. We have given advice to our overseas counterparts and answered their questions. Experts from many countries have provided positive feedback on these conferences, which have been considered transparent, inclusive, informative and professional. The sincerity of the Chinese experts who have shared their knowledge has been essential for the prevention and control work outside China.

Second, we have dispatched Chinese medical experts to hard-hit countries. We have sent seven batches of medical experts to the five countries of Iran, Iraq, Italy, Serbia and Cambodia, and the first team arrived in Iran on Feb. 27. Every time these fighters brave the coronavirus risk to travel to other countries, they have received warm welcome from local governments and people. As I mentioned earlier, Serbian President Aleksandar Vucic greeted the Chinese medical team at Belgrade Nikola Tesla Airport in person, "bumped elbows" with each member, and kissed the Chinese national flag. Cambodian netizens showed their appreciation by writing such comments as, "The divine soldiers are saving us" and "the friendship between Cambodia and China is unbreakable" online when the medical team arrived in Cambodia. When the team arrived in Italy, local people lined up to welcome them, and played the Chinese national anthem to thank China for its aid to Italy. These moves have deeply touched us and encouraged the medical teams to aid the local fights against COVID-19. 

Third, we have actively shared our epidemic prevention and control experience, as well as diagnosis and treatment plans. Since the outbreak, we have maintained an open, transparent and responsible attitude, actively summarizing our experience during the intense campaign against COVID-19. As of today, we have formed serial files of the COVID-19 prevention and control plan, diagnosis and treatment plan, case monitoring plan, epidemiology research plan, close-contact management plan, and laboratory testing technology guidelines, and translated them into other languages, providing our experience to the rest of the world. These files have been uploaded to official websites of the Ministry of Foreign Affairs as well as overseas embassies and consulates, and we will continue to update them in real time. 

China will continue adhering to the concept of a "community with a shared future for mankind," providing more high-quality public products, actively sharing Chinese experience and solutions, and joining hands with all countries to win the battle against COVID-19. Thank you. 

Zeng Yixin:

I would like to add a few words. This question from the media is very important. As everyone has noticed, China's prevention and control situation has achieved great success under the joint effort across the country. There are indeed some experience that is worth summing up, providing a reference to the world. 

I think China's experience can be summarized from several aspects:

First is the conceptual aspect. "For the people, relying on the people, always prioritizing people's lives and health" is a very important concept as well as a key factor in effectively preventing and controlling COVID-19. 

Second is the command system. Under General Secretary Xi Jinping's personal arrangements and command, we have formed a highly unified and effective command system which has been crucial.

Third is the strategy. We have carried out the prevention and control work based on the principles of rule of law, science and accuracy. This is a crucial support point. 

Fourth is about the measures, or how to transform these concepts and strategies into effective measures. We have emphasized advancing strategic passes, moving the focus down to primary levels, and especially mobilizing each community and family to play their role in the prevention and control. We have attached great importance to ensuring a coordinated national response, deploying medical resources as a whole, closely cooperating and improving our medical care capacity. We have paid high attention to science, giving full play to technology as a supporting role at every link in the epidemic prevention and control work. As Mr. Luo mentioned earlier, we highly value a great nation's image with an open, transparent and responsible attitude, and are deepening exchanges and cooperation between countries. 

China's concepts on prevention and control, as well as its strategic and practical measures have withstood the practical tests and proven effective. We would like to continue sharing with the international community and jointly promoting global health security. Thank you. 

Macao Daily News:

How has the Chinese government decided which countries they will offer anti-epidemic assistance to? How did the government decide the types and quantities of the anti-epidemic materials? And when the Chinese government made these decisions, did they take into consideration if the recipient countries had previously helped China? Will China meet every country's demand if they ask for help?

Deng Boqing:

Thank you for your questions. When China put together its assistance programs, we took into consideration the following factors: First, we evaluated how bad the recipient country had been hit by the epidemic, the state of its medical and health system, and how bad the shortage of medical supplies was. Second, we evaluated the specific needs of the country. Third, we evaluated our own capabilities. By sticking to the principle of acting according to one's own ability, we made the assistance plan on the premise that domestic anti-epidemic needs must be guaranteed. The two countries would negotiate to make the specific plan, including the types and quantities of the anti-epidemic materials, the obligations of both parties and the division of work.

There is an old saying in China, "A drop received in need will be repaid with a whole river." China will remember the countries who helped us in the fight against COVID-19 and repay them in time. At the same time, we understand that different countries have different conditions. China is grateful for both material aid as well as political and moral support. 

In China's foreign-aid policy, we believe in not only the idea that, "You throw a peach to me, I give you a white jade for friendship," but also, "A friend in need is a friend indeed." This year marks the 70th anniversary of China's foreign-aid policy. Over the past 70 years, China has offered aid to developing countries in the spirit of internationalism and humanitarianism. China's foreign aid to countries severely affected by natural disasters and epidemic outbreaks has earned high praise from the international community. China's foreign aid has so far covered the Indian Ocean tsunami, Nepal earthquake, and the fights against the Ebola epidemic, plague and Zika virus epidemic.

At present, the world is sparing no effort in its fight against the raging epidemic. The spread of COVID-19 across China has been basically halted. However, China is still facing the risk of scattered and regional outbreaks as well as imported cases. China will continue to offer assistance to relevant countries while ensuring domestic epidemic prevention and controls are in order. We also hope more forces will join the global fight against COVID-19. There is an old saying in China, "The more people that collect firewood, the higher the flames," which means "Many hands make light work." We can defeat the epidemic and safeguard the welfare of all people as long as the international community works together. Thank you.

Associated Press of Pakistan:

Since the outbreak of COVID-19 in Pakistan, China has provided help to its "iron brother" Pakistan to effectively fight against the epidemic. Can you provide us some details about the assistance from China to Pakistan? Thank you.

Deng Boqing:

Thank you to our friend from the Pakistani media. China and Pakistan have all along been true friends standing together in time of difficulty, as well as good brothers sharing weal and woe. Our special friendship is the choice of history and is deeply rooted in the hearts of the two peoples. As China makes all-out efforts to fight against domestic epidemic, Pakistan has stood firmly by our side and pooled medical protection supplies drawn from all over the country to help China. Pakistani President Arif Alvi said during his recent visit to China that, "[It is] what friends do. Whatever we have, we give; we didn't worry about what will happen in the future. But because friends were suffering, we sent everything to China." These measures have deeply moved hundreds of millions of Chinese, forming a widely-told story speaking volumes about the strength of the iron-clad friendship between China and Pakistan.

As both countries are facing challenges posed by the pandemic at present, China stands ready to share its epidemic-control experience with and provide urgently-needed medical supplies to Pakistan to jointly address the emerging challenges. I just mentioned China's anti-virus external assistance. So far, we have provided medical supplies in four batches to Pakistan, including test reagents, medical protective suits, N95-rated medical masks, surgical masks and ventilators.

Next, we are preparing to provide more medical supplies and equipment that are scarce and urgently needed by Pakistan. In addition, China will help Pakistan build a temporary hospital with quarantine facilities. We believe that, although the pandemic shows no mercy, human beings will always share their affection towards each other. We also believe that all countries around the world, including China and Pakistan, will be able to win final victory over the COVID-19 pandemic through global cooperation. Thank you.

Zeng Yixin:

I would like to say a few more words about your question from the perspective of medical technology. China immediately shared with Pakistan its latest COVID-19 treatment guidelines and national diagnosis and treatment plan, as well as its knowledge base of the disease. Also, Chinese medical experts held video conferences with their Pakistani counterparts, sharing with them details of China's experience in containing, diagnosing, and treating the pandemic, as well as exchanging views with them on issues of their concern. What's more, at the request of Pakistan, China is now proactively preparing to send an expert group consisting of anti-epidemic and medical professionals to support the country's pandemic fight. Our expert group will visit various regions and conduct technical exchanges and experience sharing with our Pakistani brothers on site. Experts back in China will also undertake further discussions with their Pakistani counterparts and provide medical and technical support and help in containing the epidemic, on the basis of the information that is fed back by the on-site expert group. Thank you.

Economic Daily:

Since the outbreak of the epidemic, China has shared the genome sequence of COVID-19 with the WHO from the very start. My question is, what has China done in guaranteeing scientific data and information sharing? What kind of role are Chinese scientists play in combating the COVID-19 epidemic? Thank you.

Xu Nanping:

Thank you for your question. This is a very important question as scientific data and information sharing is the prerequisite and basis for international cooperation. I think media friends are aware President Xi Jinping inspected the scientific work some time ago. As for international cooperation, he put forward a requirement to share scientific research data and information, undertake joint research and create various response measures. Our interpretation is that the COVID-19 pandemic is an issue faced by all humanity and to defeat it, we have to rely on the joint efforts in the scientific community around the world, pool the wisdom and share achievements. Simply speaking, we should jointly face the challenge, undertake joint research and share the results. In this context, sharing scientific data and information is vital and this is our general attitude. We have made efforts in the following aspects:

First, sharing the genome information. We undertook this on Jan. 11 for the first time and I want to emphasize the significance of that. Just because of this action, all the countries were able to conduct virus research, medicine development and vaccine research based on that. It was a fundamental task. As for data sharing, we've established two platforms, namely, the Global Coronavirus Data Sharing and Analysis System issued by the National Microorganism Scientific Data Center, and the COVID-19 Resource Data Base from the China National Center for Bio-information. The two platforms have played important roles, and the second one in particular has offered data services for 76,000 visitors from 152 countries and regions and documents have been downloaded more than four million times from the website. Some 4.44 million downloads had been made by yesterday. At the same time, I've noted that experts from both home and abroad have made analyses on the virus based on this data and published high-level theses. That's what we have done in genome information sharing.

Second, we have established academic sharing platforms. I will talk about some incidents manifesting the Chinese government's resolution in regard to information sharing. One time when we reported the progress of some scientific and technological project to a leader from the State Council, the leader asked that whether we can share the information with the international community and colleagues in the first place and give full play to the role of the achievement in epidemic control, so as to avoid making detours. He offered two pieces of advice as follows: one is to establish a data platform for collecting and displaying all the achievements, and the other is to encourage scientists and clinicians to publish their most valuable achievements through authoritative international journals in English to facilitate communication. Following the requirement, we established the COVID-19 Prevention and Control Scientific Research Achievement Sharing and Communication Platform on the National Medical Journal of China. By now, a total of 99 journals have engaged with the platform and over 700 theses and reports have been published with the page views totaling 2.3 million. As for theses publication, Chinese scientists have published 54 theses on the four mainstream medical journals like the Lancet and the New England Journal of Medicine, and seven main comprehensive ones like Science, Nature and Cell. The theses published by the team led by Academician Zhong Nanshan covered 1,099 case analyses and articles published by the Chinese Center for Disease Control and Prevention covered case studies involving 70,000 cases. Even a layman like myself can get a lot of inspiration from reading the articles, so I think the publication of the valuable achievements can be used for reference on global control and prevention of the pandemic. 

Third, build exchange mechanisms. There are 10 working groups under the WHO mechanism and we participate in all of these groups. As far as I know, there is frequent communication between all the groups. For example, Qin Chuan, a researcher at the Institute of Laboratory Animal Sciences, CAMS & PUMC, told me she had attended four meetings in 20 days and carried out in-depth communication concerning animal models with her international counterparts. We have also established a sound exchange mechanism with government authorities and non-governmental organizations in other countries through science and technology counselors at Chinese embassies and consulates; and conducted video conferences and academic exchanges. In addition, there have been exchanges between non-governmental institutions and scientists. As you all know, many exchanges through video have also achieved very good results. 

Fourth, carry out technical cooperation research and provide technical services. Everyone knows that we have five major research areas, each of which involves international cooperation. Meanwhile, in terms of foreign aid, we have scientific and technological products and researchers involved. We also share our solutions and experiences, and have offered technical services to hard-hit areas. 

As for your question about the role of Chinese scientists, simply put, they have provided solid scientific and technological support and played an important role in containing the outbreak; it is one of the main reasons why China can effectively improve the cure rate and reduce the mortality rate, and bring the virus under control in a short period of time. There have been many moving situations. As I said at the last press conference, one month is too short for scientific research, but a long time in terms of people's lives and health. Now, two months are still very short for scientific research but a very long time in terms of people's lives and health. The achievements made by Chinese scientists in these two months can be attributed to their hard work as well as global wisdom and international cooperation. As such, I believe that science and technology have played a very important role and we are very proud of that. Thank you.

Hu Kaihong:

I would like to add a little more about this. The media has also played a very important role in sharing information. As far as I know, CGTN has a program where Chinese and foreign experts can exchange their views on this aspect. In addition, China Daily recently published special coverage introducing China's practices in this respect and sharing China's experiences and information in fighting the outbreak with the rest of the world. I hope the media can play a bigger role in this regard.

Hong Kong Economic Herald:

We all know that China has sent medical expert teams to Italy, Serbia and Cambodia to help fight the pandemic. What are the main tasks of these experts? What work have they done there? Thank you. 

Zeng Yixin:

Thank you for your questions. The outbreak of the coronavirus has now become a global pandemic. Pandemics know no borders, and the world is a community with a shared future that shares weal and woe. Many countries are facing pressure and challenges in terms of epidemic prevention and control. We can completely relate to what they are going through because we have also been through this. Many countries gave precious support to China at the critical moment in its fight against the virus. Under the premise that the outbreak has been basically under control in our country, we are willing to uphold the vision of building a community with a shared future for mankind and take concrete actions to support the prevention and control of the virus in these countries by sending medical expert teams, conveying our confidence in overcoming the pandemic. We will stand with other countries around the world to tide over the pandemic.

As for Chinese medical teams working in Italy, Serbia and Cambodia at the invitation of the three governments, we have followed the decisions of the central leadership and dispatched anti-epidemic medical teams including public health experts, epidemiologists, clinical medical experts, psychologists and TCM experts. The expert teams have shared experiences and exchanged ideas with local medical and health institutes and experts, introducing China's experience and strategy in fighting the epidemic, and offering guidance and advices on disease prevention and control, clinical diagnosis and treatment, and community management in light of local conditions. Meanwhile, under the premise of abiding by local laws and regulations, and with the support of local embassies and consulates, the expert teams have also provided medical and health guidance and assistance to local Chinese communities. This work is also very important, because people in many countries have little knowledge of the disease and they are prone to anxiety. Our experts have answered their questions at each step forward in gaining some knowledge and experience of dealing with the disease. All of this is of great help to the local authorities.

In Serbia, a team of Chinese medical experts was invited twice to attend the meeting of the country's epidemic prevention and control command. Serbia has spoken highly of the knowledge and expertise of the experts and has adjusted and decided their own work orientation in epidemic prevention and control as well as treatment. In Cambodia, as Mr. Luo and Mr. Xu have already introduced, the arrival of the Chinese medic group was broadcast live on the official Facebook page of Cambodian Prime Minister Samdech Techo Hun Sen. At present, the team is working with its Cambodian counterparts in joint epidemic prevention and control. In Italy, a team of Chinese medical experts offered advice on epidemic prevention and control, which has been highly valued.

Next, we will follow the overall decision by the joint prevention and control mechanism of the State Council, continue our efforts in dispatching teams of medical experts abroad and provide all assistance we can to relevant countries. Thank you.

Deng Boqing:

I'd like to add a few words about the supply aid to Italy. There are two things that impressed me most regarding Italy. The first is that Italy was the first country that dispatched the medical team to support earthquake-hit Sichuan province after the Wenchuan earthquake in 2008. The second is that the Italian government and people provided badly needed materials to assist China not long ago when we were at a critical moment of combating Covid-19. We remember all of these generous acts. Just as a saying goes, a friend in need is a friend indeed.

The pandemic in Italy is still severe. We also feel anxious every day about the increased number of new cases. We have seen many medical staff in Italy are facing a shortage in medical supplies. In such a situation, China has instantly shipped emergency medical supplies to Italy on chartered aircraft. At the recommendation of the E.U., a total of 2 million surgical masks, 200,00 medical N95 masks and 50,000 testing kits China offered have been delivered to Italy. We will see their efficacy in the coming days. The second team of Chinese medical experts arrived in Milan with a banner quoting a saying of the ancient Roman philosopher Lucius Annaeus Seneca, "We are waves of the same sea, leaves of the same tree, and flowers of the same garden." International solidarity and cooperation are vital for battling a pandemic. We believe that the Italian government and people will finally win the battle against the pandemic with the joint efforts of countries all over the world.

Nanfang Metropolis Daily:

As the COVID-19 epidemic further extends its global reach, and poses a growing threat to the health security of Chinese citizens overseas, my question is what measures the Chinese government has worked out to care for and help them? Thank you.

Luo Zhaohui:

This is a good question. Lately, media from home and abroad have published many reports on the Chinese government's care for overseas Chinese. The Communist Party of China (CPC) and the Chinese government are solicitous about their safety at all times. The Ministry of Foreign Affairs (MFA) instructed Chinese embassies and consulates to do their best to provide good consular protection and help overseas Chinese deal with the epidemic.  

First, we enhanced communications with the governments in countries where our embassies and consulates are stationed, and urged them to take measures to effectively protect the safety and health of overseas Chinese and students. Through telephone conversations with foreign leaders, such as British Prime Minister Boris Johnson, President Xi Jinping expressed his hope that those countries would take measures in safeguarding the health, safety and legitimate rights of Chinese nationals including those studying there. Chinese State Councilor and Foreign Minister Wang Yi talked about consular protection every time he had a phone conversation with his counterparts. Chinese embassies and consulates keep in close and regular touch with health, education, police and immigration authorities of the countries where they are stationed and have urged those governments to take measures to cope with practical difficulties Chinese nationals face in diagnosis and treatment, visa extension and continuation of studies, etc. and are firmly opposed discriminatory words and deeds of any kinds. They also keep close contact with local designated hospitals and provide timely assistance for Chinese nationals. 

Second, we keep close touch with overseas Chinese, so as to gain a very real-time idea of their needs and difficulties and guide them to protect themselves against the virus. The MFA and Chinese embassies and consulates receive a high volume of calls for help every day and have taken many measures such as increasing hotlines and creating WeChat groups to provide better services and respond to the concerns of Chinese nationals. In less than two months, the MFA hotline 12308 has manually received 70,000 calls, almost triple that of the same period last year. Ambassadors and consul-generals of China in countries such as United States, Britain, and Germany talked online with overseas Chinese nationals, especially students, during a live broadcast, and provided authoritative answers to questions all worried about and eliminated unnecessary anxieties. The Chinese Embassy in Italy organized our medical experts to broadcast live videos to introduce prevention knowledge and provide authoritative consultations for overseas Chinese and students.  

Third, we increased assistance to help overseas Chinese cope with their practical difficulties. Chinese embassies and consulates have been promoting domestic online medical and health consultation platforms among overseas Chinese nationals and provided them with free online consultation and psychological counseling services. We helped infected Chinese nationals and those with a symptom of fever access timely treatment, and followed up with checks on their condition. We also sent disease control and overseas Chinese affairs working groups from provinces with large population of overseas Chinese to those hardly hit countries to visit Chinese nationals there. After passengers on the virus-affected Diamond Princess cruise ship were quarantined, the Chinese embassy in Japan did its best to provide consular assistance for Chinese nationals.  

Fourth, we care about the special groups including overseas students and safeguard their health, safety and legitimate rights. Most overseas students stay abroad without company of their families and are very young, and they have poor capacity of self-protection. Chinese embassies and consulates attach great importance to their practical difficulties in study, accommodation, and visa extension. Chinese embassies and consulates coordinate local Chinese and enterprises to give them assistance in dining and shopping. Chinese embassies and consulates in Britain, France, Italy and the United States mobilized resources to provide local overseas Chinese students with a "health package" including necessary epidemic prevention materials and guidelines. Some Chinese embassies and consulates set up special hotlines to answer questions of parents of overseas students. 

We will follow the situation closely, and make all-out efforts to maintain the health and legitimate rights of overseas Chinese. I would like to take this opportunity to remind our overseas compatriots once again that there have been a number of confirmed cases in which travelers got infected on their way home. It is recommended that people should not travel to high-risk countries and regions in accordance with the advice of the World Health Organization, as well as the safety warnings and travel guidance issued by the Ministry of Foreign Affairs and the Ministry of Culture and Tourism, and avoid unnecessary international travel, reduce mobility, stay at home so as to keep yourself safe and healthy.

There are some concrete numbers that I would like to share with you. Among the confirmed imported cases in China, 90% are Chinese passport holders. Our priority right now is to prevent imported cases. Some of them were infected when they were abroad, but they weren't aware of it. However, some had known of their infection, and still came back. It shows that they have trust in their motherland. However, the trip has also aggravated their illness, and caused risks to all the passengers on the same flight. Among the 90% of Chinese passport holders, 40% are students. These figures tell us that traveling abroad is highly risky. We understand that some overseas students are eager to get back home, but we hope that they and their parents will weigh the pros and cons carefully and make the right choice. Recently, some Chinese ambassadors, in accordance with advice provided by the Ministry of Education and related authorities, have answered questions in terms of whether overseas students should travel back home. Under the current circumstances, staying where they are can avoid cross-infection while rushing back home or being blocked halfway triggered by border control measures adopted by transit countries. It will also avoid possible impact on the study or visa issues. It is also consistent with the professional suggestion offered by the WHO. 

China always provides strong backing for overseas Chinese citizens. Governing on behalf of the people is the purpose of the Chinese government. When overseas students have difficulties, they will seek help from the government. It shows they have trust in the government, and it is also the responsibility of the government to meet the expressed needs. We have repeatedly instructed our embassies and consulates overseas to make all-out efforts to provide overseas Chinese citizens, overseas students in particular, with consular protection and epidemic prevention assistance. The Ministry of Foreign Affairs and the Ministry of Education will continue to follow the relevant requirements and deployments made by the CPC Central Committee and the State Council, and care for the overseas students as well as provide good service for them and help them address difficulties. Thank you.  

The Asahi Shimbun:

Countries are stepping up efforts to research and develop vaccines for COVID-19. What cooperation has China carried out with other countries in this regard? Thank you.

Xu Nanping:

Thanks for your question. We all know that a vaccine is the key to combat the pandemic, and countries are working with high hopes. Vaccine research and development is very difficult, as it must be both safe and effective, so the research and development process always faces many uncertainties. It is wise for all of us to conduct international cooperation and pool human wisdom to develop such an effective vaccine the world needs badly and is critically important to fight against the pandemic. So, your question is very important.

We have been working with the international community since the beginning of the vaccine development phase. Why did we share with the world information on the virus and its genome sequence in a timely manner? We just hoped that all countries will start developing vaccines as soon as possible. We have adopted a five-prong approach in vaccine research and development. We have been cooperating with international community in all these five directions, and all the research are open for more international cooperation. 

For example, in terms of the DNA vaccine, Chinese enterprises are working with the U.S. company Inovio. For the mRNA vaccine, we are working with the German company BioNTech. Regarding the recombinant protein vaccine, Chinese companies are working with the U.K. company GSK. Actually, more cooperation is in the pipeline. Generally speaking, China's vaccine research and development depends on global endeavors. It is pooling wisdom of the world, and will be shared by the whole world. Thank you for your question.

Financial Times: 

We have noticed that there are some arguments and frictions between China and the U.S. about the COVID-19 outbreak. I want to know what you think of such escalating disputes. Are these disputes going to affect international cooperation in the fight against the epidemic? How are the U.S. and China currently cooperating? How would you rate the current exchanges and cooperation between China and the U.S.? Thank you.

Luo Zhaohui:

Thank you for your questions. The international cooperation in response to COVID-19 has been smoothly carried out in general. You mentioned specifically about the China-U.S. cooperation, which has been underway in a practical manner. When China was in the most severe phase of the outbreak, U.S. companies, civil society organizations, and oversea Chinese people and communities all provided much support and help to China. The U.S. leadership also publicly praised China's epidemic prevention and control work and China-U.S. cooperation on many occasions. As you mentioned, some U.S. politicians recently stigmatized China, carried out inappropriate actions and made improper statements. These actions have indeed impaired China-U.S. epidemic cooperation and also harmed China-U.S. relations. This is not what we wanted to see. These slanderous statements and actions have harmed our interests and outraged the Chinese people. So, China will certainly be making necessary responses. 

As a matter of fact, the source of COVID-19 is a scientific issue. We need to listen to professional and scientific opinions. The WHO has stressed many times that linking viruses to specific races, skin colors or geographical areas should be avoided. This is also the international consensus. Since the outbreak started, China has implemented the most comprehensive, strictest and most thorough prevention and control measures in a timely manner. China has made huge sacrifices and contributions to uphold global public health security and to safeguard the health and safety of all mankind. Everyone should still remember that on Jan. 23 we made the decision to lock down the entire city of Wuhan. This decision was not easy at all back then, but as we see it now, it was quite a right decision. Wuhan, Hubei and the Chinese people have all made sacrifices and put in considerable effort to buy time for the world to respond. We gained experience in fighting against the epidemic and our efforts are recognized.

Maintaining the sound and stable development of China-U.S. ties not only benefits the people of the two countries, but also meets the expectations of the world. We urge the U.S. to work together with China on the basis of mutual respect, managing our differences and expanding mutual beneficial cooperation. We should work together to boost China-U.S. relations based on coordination, cooperation and stability.

We hope that we can work together with countries around the world including the U.S. to jointly fight against the epidemic. A global issue needs a global cooperative response. China and the U.S. are global leaders for the research and development of COVID-19 related medicines. Our cooperation will benefit not only each other, but all countries and mankind. Thank you, that is my answer to your questions on China-U.S. cooperation on fighting the epidemic.

Deng Boqing:

I would like to add a few words. Viruses are a common threat for the whole of humanity and cherishing life is the common value for all of humanity. The COVID-19 epidemic is a touchstone. It reveals both the bright and dark sides of humanity. It is worth putting in all our efforts to save lives. We have seen that, since the COVID-19 outbreak, many U.S. businesses, civil society organizations and individuals have actively provided support for China. We're thankful for all of these actions. We also have seen that, while the epidemic spreads in the U.S., many Chinese companies, NGOs and local authorities are providing help. Faced with the epidemic, the international community including China and the U.S. should collaborate and jointly respond to uphold global public health security and safeguard the interests and well-being of all mankind. Thank you.

China News Service:

Just now, Mr. Zeng mentioned that nearly 30 video conferences had been held among Chinese and foreign medical experts to communicate and meet each other's needs. Could you go into detail about these conferences? What has been achieved? Thank you.

Zeng Yixin:

Thank you for your question. At the request of some countries and international organizations, the NHC has organized close to 30 video conferences on the treatment of COVID-19, involving medical experts from over 100 countries. These exchanges have proven to be very effective amid the current pandemic. We will hold more than 10 such events in the near future. On March 12, the NHC and the WHO jointly held a briefing on China's experience in COVID-19 prevention and control. Ma Xiaowei, minister of the NHC, introduced China's experience, which he believes features eight essential elements. They are a unified and efficient command system with science-based and targeted prevention and control strategies in accordance with the law, a prevention and control mode with the focus moved forward and shifted to the community level, coordinated deployment of medical resources, concerted efforts to improve prevention and treatment capacity, extensive use of science and technology, a vision of fighting COVID-19 for the people and by the people, and close communication and cooperation with other countries. Chinese experts also shared experience through video conferencing. Renowned Chinese respiratory specialist Zhong Nanshan, epidemiologist Li Lanjuan, and other experts on the frontline in Wuhan exchanged ideas with their foreign counterparts on the treatment of severe cases, nosocomial infection control, the prescription of medicine, the use of ventilators, and actions of self-protection of medical workers. These exchanges have contributed to global efforts to combat the pandemic.

Participants from around the globe spoke highly of the video conferences. For example, the WHO and countries in the Western Pacific Region thanked China for the timely experience sharing, which offered valuable support for countries around the world in uniting together to overcome the pandemic. As a matter of fact, all experiences were drawn from continuous exploration and analysis during our clinical practice and epidemic control. Some of the experiences are relatively universal. For instance, when treating some patients, doctors need to decide whether hormones should be used or not; if yes, when, how much, and for how long they should be used. Such experience is clinically urgent and instructive. Despite race differences, it offers some guidance for clinicians across the world in their prescription of medicine. I once attended a video conference with WHO officials as well as Italian officials and experts. They expressed a keen interest in convalescent plasma therapy introduced by Chinese experts. They asked questions about every detail, including how to collect and purify plasma, how to do testing safely, and how much plasma should be used. The therapy is beneficial to them. When social measures, such as community-based prevention and control, as well as traffic restrictions, are rolled out, national conditions, including culture, customs, weather, and geography, need to be taken into consideration. Still, other countries can learn from China's experience in this respect. Therefore, our international counterparts can fully recognize the significance and value of China's experience. They all considered it precious and expressed sincere gratitude to China. Thank you.

CNR: 

The novel coronavirus is a new strain of virus. China has done a great deal of work to find effective drugs and clinical treatments for the virus and has formed a complete set of technical schemes. Is China willing to share its technical schemes and research outcomes with other countries? What are you going to do next? What are the most critical experiences and outcomes China can share with other countries to fight COVID-19 in the fields of science and technology? Thank you. 

Xu Nanping: 

Thank you for your questions. As you said, China's scientific and technical personnel have done a great deal of work to find effective drugs and clinical treatments. However, I need to correct your statement that a complete set of technical schemes has been formed. We can only say that we have initially formed a relatively complete set of technical schemes. Since the virus is a new one, there are still many issues to be studied. We can say that the set is only relatively complete because we didn't own any in the past and we have one now. In terms of technical schemes, our research outcomes can be summarized in three sentences. First, a series of TCM and TCM-based treatment approaches we have developed have proved effective in relieving symptoms and significantly increasing the recovery rate of mild or moderate cases. For example, none of the 456 patients with mild symptoms in a temporary hospital developed severe conditions after receiving TCM treatment. The effect of TCM treatment is very obvious. Second, in antiviral treatment, we selected drugs, such as chloroquine phosphate, favipiravir, and carrimycin, and these drugs have shown certain efficacy in our clinical research. It is very important that they can prevent moderate cases from progressing to severe and critical cases. Third, we have developed a series of drugs and treatment schemes, including convalescent plasma, stem cell therapy, tocilizumab, and artificial liver in treating severe and critical cases, and thus effectively reduced mortality rate. This is very remarkable.

Generally speaking, we have achieved some outcomes and initially formed a set of technical schemes. To answer your question on whether we are willing to share our research outcomes on these drugs and treatment schemes with other countries, I think I have made it very clear when answering another question just now. We all believe that these research outcomes are not only the achievements of China's scientific and technical personnel but also the quintessence of human beings' wisdom formed in their fight against infectious diseases over a long period. They are our joint achievements in overcoming the common threat of mankind. Therefore, the research outcomes should be unreservedly shared with other countries to help save the lives of people around the world. Our attitude is clear-cut.

To answer your second question on what we are going to do next, I can tell you that we will take actions in the following three areas: 

First, we will continue to share our research outcomes. China has carried out a vast number of clinical trials, during which some drugs proved to be effective, some showed no apparent effect, and some were ineffective. No matter what the results of the research are, our experience is invaluable because it helps others avoid detours and thus save time. As we know, time is of the essence now. Therefore, how to promote sharing of successful experience and communications on unsuccessful outcomes is very important. We are pleased to see that our previous efforts have offered a reference, as seen in the recently released WHO suggestions on clinical trials and some countries' plans on clinical application and screening of drugs. We will strengthen our work in this respect and publish the results of our previous clinical trials as soon as possible to deepen exchanges with our international counterparts and help them avoid detours by drawing on our experience. 

Second, we will join our efforts for breakthroughs in our research. We have recently noticed that many countries are carrying out large-scale clinical trials on some drugs that have proved effective in our previous clinical practices, such as favipiravir and chloroquine. We have also seen that the scientific and technical personnel in some countries have been screening new drugs for clinical trials. We pay close attention to the progress of such practices as they will be helpful in our work in the future. Meanwhile, we expect to further cooperate with our counterparts in other countries, mainly by participating in more international multi-center clinical trials. Chinese respiratory specialist Zhong Nanshan is currently in an international multi-center clinical trial. We are willing to join multi-center clinical research or launch joint research with other countries to combine our forces in fighting the virus. 

Third, we need to strengthen communication. As for medicine, each country has its own laws and regulations and its people have their own customs, so a lot of medicine exported could not be used immediately, and there must be a lot of work to do. In this regard, we are now also conducting in-depth communication with many countries, such as through video conferences, to solve these problems and share our experiences.

The third question is China's most important experience and achievements in science and technology. As we have just said: in a short time we have brought the epidemic under control, improved the rate of those recovered and reduced the death rate. This is an important achievement from the scientific and technological community. But what has China's experience been regarding science and technology? Personally, I don't think it is time to sum up all the experiences – we still have a lot of work to do and a lot to explore. But one thing is certain: in the face of such a global problem and global disaster, we can only achieve the best results if we face things together, study together and share our results. Because we are in a race against time, in this process, we must work together to come up with the best plan. For example, drug development, including vaccine development and testing reagents, is subject to approval by the drug regulatory authorities of different countries. In China, the authority is the National Medical Products Administration. In the past, every unit has done their work well and reported to the administration for examination and approval. What did we do this time under the joint prevention and control mechanism of the State Council? We did all the former serial works in parallel, conducted joint research and review, and solved problems together with the researchers. In this way, the road behind is clear. So, the reason we took only two months to gain these results is because of our concerted efforts. The most important experience is to face, study and share the results together. This is my biggest experience. Thank you.

Cover News:

We are aware that during this epidemic outbreak, China has provided a large amount of anti-epidemic assistance, including epidemic prevention materials and dispatched medical teams to other countries. Will the foreign aid affect prevention and control of the epidemic at home? Thank you. 

Deng Boqing:

Thank you. China's foreign aid has always been carried out under the principle of doing what we can and doing our best. The same is true of the ongoing foreign anti-epidemic aid. Whether we provide material assistance or dispatch medical teams to foreign countries, the first thing we must do is to ensure the need for prevention and control at home. Because the domestic prevention and control work progressing well, in fact, is also a contribution to the entirety of mankind.

Under the personal command and deployment of General Secretary Xi Jinping, the epidemic situation in China continues to improve. The domestic medical teams supporting Hubei province are being withdrawn in an orderly manner, and the production capacity of detection reagents, masks and other medical protection and treatment materials is also rapidly increasing. When we provide anti-epidemic material assistance to foreign countries, we should first of all, in conjunction with other relevant departments, carefully analyze the needs of the domestic anti-epidemic work, and take into account various factors such as the existing domestic material stockpiles and production capacity. The proposed material assistance plan will not affect domestic anti-epidemic work. In addition, the number of medical expert teams we have sent to other countries is not large. Although there are many batches of medical experts going to many countries, the main task is to exchange experiences, share medical practices and provide some policy suggestions and medical advice. At the same time, we can also provide epidemic prevention guidance to overseas Chinese, Chinese students, and Chinese-funded institutions and enterprises.

We should also note that China's current anti-epidemic work is facing a severe challenge, that is, the risk of imported cases is increasing. Our assistance to relevant countries is also conducive to the efforts of the international community in combatting the epidemic, reducing the risk of inbound cases from overseas regions, and consolidating our hard-won achievements in fighting the epidemic in the previous stage. Thank you.

Yonhap News Agency: 

The epidemic situations in both the Republic of Korea (ROK) and China have become much better. I wonder what China thinks of the cooperation between the two countries? And where is this cooperation headed in the future?

Zeng Yixin:

Your first question is concerning what we think of the epidemic control work in the ROK. Each country has its own specific situation, including number of infected cases, how serious the epidemic is, the distribution of the cases and so on. Each country also has its own social system and management system too. Therefore, we believe the ROK formulated its prevention and control measures according to its own conditions, and we are happy to see that the situation there is gradually improving. 

As for your second question on the cooperation between China and the ROK after the outbreak. Foreign ministers of both countries have mentioned in phone conversations that the two sides have maintained close exchanges centered around two aspects: prevention and control, and medical treatment. The two countries have carried out cooperation in both aspects. Officials in the health authorities of both countries have also kept close policy communication via written exchanges. Since Jan. 3, the health authorities of the two countries have maintained close cooperation regarding epidemic information, and shared such information between them. The disease control centers of the two countries have also established expert hotlines to share information and carry out technical exchanges. China has shared technical guidelines and measures regarding COVID-19 prevention, diagnosis and treatment with the ROK via various channels. On Feb. 3, the two sides participated in a video conference held between senior health officials of the ASEAN, China, the ROK and Japan, during which they carried out technical exchanges on epidemic prevention and control. Foreign ministries in China, the ROK and Japan also established a joint multi-department prevention and control mechanism. Epidemic control involves not only health authorities but also other government agencies, thus foreign ministries of the three countries took the lead on this mechanism. Under this mechanism, health authorities in China and the ROK jointly established a clinical and prevention committee to further carry out cooperation in fighting the epidemic. 

Next, under the aforementioned mechanisms and committee and through video and phone calls, China and the ROK will continue to carry out technical exchanges, share epidemic control experiences and clinical experiences, coordinate epidemic control efforts, and carry out further cooperation in order to respond to the pandemic. Thank you.

China Daily:

The current COVID-19 pandemic once again highlights the common destiny and shared weal and woe of all countries. What do you think the meaning of constructing a community with a shared future for mankind is?

Luo Zhaohui:

The question is very good; both general and theoretical. In the era of globalization, mankind faces common development opportunities and bears common risks and challenges. At present, the COVID-19 pandemic is developing rapidly. It took 67 days from the first case to reach 100,000 cases, 11 days to the second 100,000 cases, and four days to the third 100,000 cases. The pandemic has seriously threatened the lives and health of people around the world and impacted the global political, economic and social layout. The way to deal with this severe challenge is not only related to the safety and security of the people of all countries and the future of the world, but also tests the common wisdom of human society.

Facing the outbreak of the COVID-19 pandemic, the concept of a community with a shared future for mankind proposed by President Xi Jinping has further highlighted its value at this time. It is a universally applicable truth, and the international community has truly felt the importance and urgency of unity and cooperation. In these crucial times, will the international community be selfish, narrow-minded and secluded, or come together to protect our homelands? Will the international community spread rumors, prejudice and xenophobia, or join hands to fight the pandemic? Over the past two months, the fight against the pandemic has clearly shown that collaboration and mutual assistance are the two most powerful weapons for coping with the pandemic, and only by sharing weal and woe is it possible to achieve a better future for mankind.

Building a community with a shared future for mankind is an important part of President Xi Jinping's thoughts on diplomacy, while the Belt and Road Initiative offers a significant platform for building the community with a shared future for mankind. The concept has now been included in U.N. documents and gained broad recognition. China has been building a community with a shared future along with neighboring countries on a bilateral basis, including Pakistan, Myanmar and Cambodia. We are happy to see that the concept has translated into a vivid demonstration of working in unity and joining hands to fight against COVID-19, and that the concept also has brought trust and strength to an international society in crisis. We believe, when we finally achieve victory against the pandemic, the idea of building a shared future and win-win cooperation will inevitably take root, and the international society will definitely energize the building of a community with a shared future for mankind.

Hu Kaihong:

The press conference is hereby concluded. Thank you to our four speakers. Thank you all.

Translated and edited by Zhu Bochen, Li Xiao, Wang Yiming, Li Huiru, Zhang Rui, Zhou Jing, Zhang Jiaqi, Yuan Fang, He Shan, Wang Wei, Wu Jin, Huang Shan, Qin Qi, Xiang Bin, Fan Junmei, Wang Yanfang, Mi Xingang, Yang Xi, Zhang Junmian, Duan Yaying, Gong Yingchun, Wang Qian, Zhang Liying, Guo Xiaohong, Wang Zhiyong, Zhang Lulu, Gao Zhan, Yan Xiaoqing, Jay Birbeck, Laura Zheng, David Ball, Geoffrey Murray. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Yu Yanhong, a member of the Central Guidance Team in Hubei province, a member of the Leading Party Members' Group of the National Health Commission, and secretary of the Leading Party Members' Group of the National Administration of Traditional Chinese Medicine;

Zhang Boli, academician of the Chinese Academy of Engineering and president of Tianjin University of Traditional Chinese Medicine;

Huang Luqi, academician of the Chinese Academy of Engineering and president of China Academy of Chinese Medical Sciences;

Liu Qingquan, president of Beijing Hospital of Traditional Chinese Medicine;

Qiu Haibo, vice president of Zhongda Hospital of Southeast University.

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office of China

Date:

March 23, 2020

Xi Yanchun:

Good afternoon, friends from the media. Welcome to the ninth press conference held by the State Council Information Office in Wuhan, Hubei province. We will brief you on the important role of Traditional Chinese Medicine (TCM) in prevention and control of COVID-19. First, a short video will help us get to know today's speakers.

(video clip)

Let me introduce the speakers: Yu Yanhong, a member of the Central Guidance Team in Hubei province, a member of the Leading Party Members' Group of the National Health Commission, and secretary of the Leading Party Members' Group of the National Administration of Traditional Chinese Medicine; Zhang Boli, academician of the Chinese Academy of Engineering and president of Tianjin University of Traditional Chinese Medicine; Huang Luqi, academician of the Chinese Academy of Engineering and president of China Academy of Chinese Medical Sciences; Liu Qingquan, president of Beijing Hospital of Traditional Chinese Medicine; and Qiu Haibo, vice president of Zhongda Hospital of Southeast University.

Now, I will give the floor to Ms. Yu. 

Yu Yanhong:

Friends from the media, good afternoon! This is my third time to join you in a press conference held by the State Council Information Office in Hubei. On the previous two occasions, I introduced the role and effect of TCM. I would like to take this opportunity to thank journalists for their coverage. Your recognition spurs us to continue with relevant work. 

As COVID-19 moves from epidemic to global pandemic status, the question arises as to what China can offer to the world in terms of its experience in the use of TCM? Many of you have shown keen interested in how TCM can exert its influence.

Friends from the media, under the situation when COVID-19 poses a global threat, several experts and I have gathered here today hoping to conduct more discussion and exchanges, to share with you our thinking on the role of TCM in the prevention and control of COVID-19, as well as its effect in patient treatment. 

General Secretary Xi Jinping has attached great importance to the prevention and control of COVID-19. He has personally led, commanded and deployed all available forces in the battle against the outbreak, emphasizing many times the usefulness of combining TCM and Western medicine. Under the leadership of the CPC Central Committee with Comrade Xi Jinping at its core, with the deployment of the central leading group on epidemic response, as well as Premier Li Keqiang and Comrade Wang Huning, the Central Guidance Team in Hubei led by Vice Premier Sun Chunlan has promoted the involvement of TCM in treating COVID-19 patients. I will brief you on the role TCM has played in epidemic prevention and control in the following aspects:

First, we have mobilized a great many TCM experts. More than 4,900 TCM medical staff across China have been organized to support Hubei, including three academicians and hundreds of experts, accounting for about 13% of the total medical staff assisting Hubei. The size and professional level of the TCM assisting team is unprecedented.

Second, we have been carrying out classified treatment. For mild cases as well as patients in the recovery stage, we applied TCM early on. For severe and critical patients, we combined treatment with TCM and Western medicine. Corresponding treatment plans and norms have been formulated. In the early stage of the outbreak in Wuhan, many suspected cases were waiting for the diagnosis results at the quarantine areas, we offered them TCM decoctions or ready-made TCM formulae to effectively relieve their symptoms and ease the burden on medical services.

Third, we have screened traditional Chinese medicine (TCM) prescriptions and medications in treatment and selected those that are effective against the COVID-19 disease. We promoted breakthroughs in medical science and technology, and synchronously observed the clinical effectiveness of Chinese patent medicines and herbal compounds for inclusion in the fifth, sixth, and seventh editions of the national diagnosis and treatment plan for the COVID-19. Up to now, "three medicines and three formulas" have been proven effective in treating the disease, namely: Jinhua Qinggan Granule, Lianhua Qingwen Capsule, Xuebijing Injection, Lung Cleansing and Detoxifying Decoction, Huashi Baidu Formula, and Xuanfei Baidu Formula. 

People in all the sectors agree that TCM has played an important role and become a highlight in the epidemic prevention and control work. Here is a set of data. A total of 74,187 COVID-19 patients, or 91.5% of the total confirmed cases nationwide, have been treated with TCM. Among them, 61,449 were from Hubei, accounting for 90.6% of confirmed cases in the epicenter province. Clinical observation showed that the total effective rate of TCM treatment reached over 90%. TCM has proven effective in relieving symptoms, preventing mild and common cases from developing into severe cases, improving the recovery rate and reducing fatality rate, and boosting the recovery of patients during their rehabilitation process.

During the epidemic prevention and control, TCM professionals were among the first to arrive at the scene. With proficient medical skills and strong medical ethics, they boosted their motivation to move forward, demonstrated the uniqueness and strengths of TCM treatment, and made great contributions in the fight against COVID-19.

Friends from the media, TCM is a treasure of ancient Chinese science, and a form of holistic medicine that covers prevention, treatment and rehabilitation of illnesses. It enjoys a history dating back to antiquity and extensive popularity among Chinese households. Whenever a serious epidemic has broken out, we have always found suitable solutions using TCM treatment. Various ancient medical classics, including Qian Jin Fang (Essential Formulas for Emergencies [Worth] a Thousand Pieces of Gold) by Sun Simiao, Shang Han Za Bing Lun (Treatise on Cold Damage Disorders) by Zhang Zhongjing, Wen Yi Lun (A Treatise on Epidemic) by Wu Youke, and Wen Bing Tiao Bian (Analysis of Pestilential Febrile Diseases) by Wu Jutong, offer a systematic summation of basic TCM theories, clinical practices, prescriptions, medications and medical techniques for the prevention and treatment of infectious diseases. Such books embody the wisdom of ancient Chinese people who have constantly explored, considered and summarized the rules of epidemic prevention and treatment. Inspired by the ancient TCM classic Zhou Hou Bei Ji Fang (Manual of Clinical Practice and Emergency Remedies) written by TCM master Ge Hong, Tu Youyou, a researcher at the China Academy of Chinese Medical Sciences, discovered artemisinin, which saved millions of lives across the world. The discovery won her the 2015 Nobel Prize in Physiology or Medicine.

TCM has also proven effective in treating infectious diseases caused by viruses. In recent years, with frequent outbreaks and the spread of viral respiratory diseases, the TCM treatment of SARS and influenza virus A subtype H1N1 have yielded significant results. Meanwhile, we have accumulated rich experience in responding to emerging infectious disease epidemics. Research confirmed that TCM can enhance the body's immunity by holistic adjustment and can also inhibit the viral infections and even kill viruses.

Despite the lack of any effective drugs or vaccines in the early stage of the COVID-19 outbreak, medical staff carefully examined TCM procedures and drew on the lessons from the past experience of using TCM in treating viral infections. We have also studied the classic TCM prescriptions devised in ancient times in the light of our clinical practices, putting forward a plan for COVID-19 diagnosis and treatment involving TCM alone and a combination of TCM and Western medicine. This is an important feature and also the advantage of the Chinese plan. We have selected a series of effective TCM treatments featuring three types of medicines and three kinds of prescriptions. This once again demonstrated that TCM, as an everlasting and valuable asset inherited by many generations through the ages, is something to be cherished. It is not only still useful and effective, but also economical and easy to access. 

Diseases know no borders, and a virus is the enemy of all humanity. We are willing to share with the rest of the world our valuable experience and effective treatment on COVID-19. WHO Director-General Tedros Adhanom Ghebreyesus has also underlined the effectiveness of the measures taken by China to deal with the virus, urging other countries to learn from China's experience. 

I would like to take this opportunity to say that TCM community in China would like to strengthen cooperation with the rest of the world, share experiences concerning epidemic prevention and control as well as medical treatment procedures, and provide any part of the world in need with effective Chinese patent medicine, advice, and assistance as much as we could. Thank you.

Xi Yanchun:

Thank you, Ms. Yu Yanhong. Next, we will move on to questions. Please ask questions via the video link, first identifying your news outlet. The floor is now open for questions. 

CGTN:

TCM has been widely and effectively applied in the treatment of COVID-19 in Wuhan. My question is for Mr. Zhang Boli. What are the lessons you've learnt in the course of the medical treatment in Wuhan and are willing to share with the rest of the world?

Zhang Boli:

Thank you for your question. I arrived in Wuhan on Jan. 27. That is almost two months ago. When I first came here, the epidemic situation was fairly severe. Hospitals were filled to capacity. Hundreds of people were waiting in line at fever clinics, and they couldn't get medical treatment for hours. Patients and accompanying visitors were mixed together, which was very worrying. Two months later, what is the situation in Wuhan today? The number of hospitalized patients has been reduced from over 60,000 to around 5,000, and that of patients in critical condition has fallen from 12,000 to about 1,800. In particular, until yesterday, no new confirmed cases of COVID-19 were reported in Wuhan, marking the fifth day in a row we have seen zero increase, including zero new confirmed case, zero new suspected case, and zero existing suspected case. Therefore, the situation in Wuhan is turning for the better, just like Dante Alighieri wrote in Divine Comedy that "E quindi uscimmo a riveder le stele ["And so we went out to study the steles."]

However, when I read about the current situation in Europe and the U.S., I'm also very worried and sympathize with them. Therefore, we are very willing to share our experience with all our peers around the world. In the light of our experiences with a disordered situation in Wuhan at the very beginning of the outbreak of the epidemic, the Central Guidance Team made a decisive decision, seeking to conduct classified management and centralized isolation of all suspected infection cases. People with fever symptoms, people who need a 14-day quarantine for medical observation, suspected infection cases, and people who had close contact with COVID-19 infected cases were totally separated. Thanks to the great efforts made by local community workers and residents in Wuhan, it only took a few days to separate the different types of cases for appropriate treatment. However, without medicine, isolation is only half of the battle. Since there is no effective medicine or vaccine, we began to give TCM decoctions and proprietary Chinese medicines to our patients. At the beginning, it didn't go well; we only delivered medicines to some 3,000 to patients from 13 districts of the city on the first day. The curative effect of TCM appeared after two or three days, however. With the fever gone and cough reduced, patients began to try TCM on their own initiative, and more than 10,000 bags of TCM decoction were delivered at that time. So far, we have delivered TCM products to more than 600,000 patients. What's the effect? It has contained the spread of the epidemic. Let me give you some data. In early February, over 80% of the four types of people I mentioned previously became confirmed COVID-19 infected cases. By the middle of February, it dropped to 30%, and then down to under 10% at the end of February. Centralized isolation of all suspected infection cases, and enabling our patients to take TCM have contained the spread of the epidemic, which is the foundation of our fight against COVID-19.

The second experience is classified management and scientific treatment. The central government asked to leave no coronavirus patient unattended, and treat every single one regardless of cost; however there weren't enough hospital beds at that time. The Central Guidance Team then decided to treat severe cases in specially hospitals designated, while keeping the mild cases in Fangcang shelter hospitals, and introducing management standard of treatment for mild and ordinary cases. However, Fangcang shelter hospitals are quite different from ordinary hospitals. With thousands of people living in a super large hall, how to manage them in an orderly way is a big problem. Under such circumstances, Professor Liu Qingquan and I jointly advised the headquarters to adopt TCM to treat the patients in Fangcang shelter hospitals. At the same time, the first temporary TCM hospital was built in Jiangxia district of Wuhan. In this temporary hospital, we put service ahead of treatment. How did we provide our service? Because of the large space, the temperature inside Fangcang shelter hospital was relatively low. We provided every patient with a warm bed, hot water, hot meals, as well as our hospitable service. At the same time as treatment, we also tried our best to show our care for the patients. For example, we communicated with our patients a lot, celebrated birthdays with them, and lead them to do exercise together. Because of our enthusiasm, the doctor-patient relationship became very harmonious. After staying a few days at Fangcang shelter hospital, patients felt it was more like a big community or extended family instead of hospital, which was also helpful to the treatment of all patients.

Patients treated in Fangcang shelter hospitals were all mild and ordinary cases. According to the WHO, severe cases account for 13% of the total COVID-19 infected cases, while critical cases account for around 7%. So, our goal when treating patients in the Fangcang facilities was protecting them from developing a severe or critical condition. We adopted a comprehensive treatment which combined TCM with Western medicine. In addition to TCM decoction and oral proprietary Chinese medicine, we also provided massage, guasha (or scraping therapy), and medicine for external application. What's the effect? Let me take Jiangxia temporary hospital as an example. There were a total of 564 patients treated, and none developed severe symptoms. We then shared our experience with other Fangcang temporary hospitals, and treated more than 10,000 patients with TCM. As a result, around 2% to 5% of patients treated in Fangcang hospitals developed a severe condition. Therefore, we could say that TCM treatment has significantly reduced the possibility of mild cases turning into severe and critical cases, which is the key for our fight against COVID-19.

Another point is that treatment of severe cases is the most important of all. So for severe patients, we still prioritize the use of Western medicine, while traditional Chinese medicine (TCM) is used as a supplement –in other words, we use the combination of TCM and Western medicine. The use of TCM can often have a significant effect despite being supplementary. It has been used in the treatment of severe cases in Jinyintan Hospital, Hubei Provincial Hospital of Integrated Chinese and Western Medicine, and Leishenshan Hospital, and have achieved very good results. So our conclusion is that TCM injections should be used boldly and early. For example, Shengmai Injection and Shenmai Injection can stabilize the saturation of blood oxygen and improve the oxygenation level of patients; Tanreqing Injection and Reduning Injection can work along with antibiotics; while Xuebijing Injection has some effect on inhibiting inflammation and controlling disease progression. Thus, the treatment of severe cases and the combination of TCM and Western medicine have helped reduce mortality rates and contributed to our victory. 

Lastly, when patients turned negative for the virus, they will be discharged from hospital and moved to isolation centers for rehabilitation. During the rehabilitation stage, patients may sometimes experience fatigue or cough, or are not in very good spirit. Their lung inflammation have not been fully squashed, and the immune function has not been completely repaired. In this case, we combine TCM and Western medicine to help them do some breathing exercises, in addition to TCM acupuncture, massage and other comprehensive therapies. This can improve their symptoms, promote lung inflammation reduction, protect the damaged organ, and repair immune function. Therefore, we can say that TCM and Western medicine play their respective roles and their combination is conducive to the rehabilitation period, thus securing the final victory.

The early intervention of TCM and its participation in the whole process of treatment of the COVID-19 plays an important role. The course of COVID-19 is like a parabola, and TCM is effective at both ends of the curve. And although there is so far no specific cure for the disease, TCM has provided effective treatment plans. The combination of TCM and Western medicine is the highlight of the Chinese approach to the disease. Currently the epidemic is rampant across the world and the disease knows no border, and TCM is always ready to help. We are very willing to share the above experience with our colleagues. Thank you.

Reuters: 

Du Bin, a member of the High-level Expert Panel of the National Health Commissio, said during a press briefing last week that he hoped that TCM will use the evaluation methods of Western medicine to prove its effectiveness in treating the novel coronavirus. What are the TCM treatment methods that are endorsed by the Chinese government? What evidence is there to prove their effectiveness? Thank you. 

Qiu Haibo:

Professor Du Bin is a colleague of mine, and we are treating severe and critical patients together. We often discuss COVID-19 diagnosis and treatment as well as the combination of TCM and Western medicine in the treatment.

I myself practice Western medicine and I am an ICU doctor. As to how to evaluate the effectiveness of TCM, we can see that it is increasingly evaluated by internationally recognized evidence-based medicine methods. Also, we can see that more and more TCM, proprietary Chinese medicines and TCM injections are using internationally recognized randomized controlled trials to evaluate their efficacy. As we all know, the randomized controlled studies led by Academicians Wang Chen and Gao Runlin evaluated the treatment of influenza H1N1 and chronic heart failure by Chinese patent medicine Jinhua Qinggan Granule and Qiliqiangxin Capsule respectively. The sample sizes were 410 to 526 cases respectively. It was observed that, as compared to standard treatment solely, the additional use of Jinhua Qinggan Granule can significantly shorten the fever time of influenza patients, while Qiliqiangxin Capsule can significantly improve the cardiac function of chronic heart failure. These studies have been published internationally.

In addition, Xuebijing, a Chinese medicine injection, has been highlighted during COVID-19 treatment. The academicians and professors here today have been adopting the internationally recognized method of evidence-based medicine to make clinical research on this. Indeed, we know that TCM treatment is usually based on syndrome differentiation, and that prescriptions vary among individuals. However, we are increasingly using internationally recognized methods of evidence-based medicine to evaluate the efficacy of TCM.

TCM was used early on coronavirus treatment, especially for the treatment of severely and critically ill patients. According to our clinical observations, the treatment is mainly useful in the following circumstances: First, preventing patients with mild and moderate symptoms from becoming severely ill; second, preventing severely ill patients from developing into critically ill cases; third, treating severely and critically ill patients; fourth, helping severely and critically ill patients recover. TCM has played a very important role in the above four aspects. To reiterate, it works well in preventing moderate and severe symptoms from becoming worse, plays a certain role in the treatment of severely ill patients, and proves to be a very effective method for the rehabilitation from COVID-19.

Actually, TCM and Western medicine adopt quite different treatment models. In Western medicine, most chemical drugs are designed to hit a single target, while TCM drugs mostly act on multiple targets. That is to say, TCM works more like as a team. But, as far as the disease is concerned, there are many targets to hit. In the case of COVID-19, the virus can cause inflammation and immune disorder, leading to impaired organ function including that of the lungs and heart. In other words, the virus, inflammation and the organ damages caused by immune disorder are all targets. Western medicine relies on chemical drugs that attack a certain target for treatment, while TCM could hit multiple targets, that is, it might have an effect on curbing virus replication, the regulation on inflammation and immunity, later organ damages and coagulation, among others. 

Here, I would like to take Xuebijing Injection as an example. Xuebijing has been well studied in recent years, and has been proven to be effective with at least six chemical constituents by the Shanghai Institute of Materia Medica of the Chinese Academy of Sciences. Moreover, in vitro experiments have shown that Xuebijing Injection can inhibit the replication of novel coronavirus. In related animal experiments, we have also found that Xuebijing Injection can suppress inflammatory responses and restore coagulation disturbances. Based on these preclinical studies that show Xuebijing is effective in treating severe pneumonia, we decided to use it to treat severely and critically ill patients. 

We know that there is no specific drug for the treatment of COVID-19. As such, would a TCM injection have therapeutic effects on it? First of all, the efficacy of Xuebijing has been widely demonstrated during the treatment of severe pneumonia and sepsis. For example, one study tested Xuebijing Injection on critically ill patients with severe community-acquired pneumonia (SCAP) in 33 Chinese hospitals. This study was led by Professor Bai Chunxue from Fudan University. Outcomes included an 8.8% lower 28-day mortality rate, and a significantly shorter duration of mechanical ventilation and ICU stay. This research, as well as research for treating patients with sepsis, revealed that Xuebijing Injection was effective in reducing mortality rates. 

We have seen the therapeutic effects of Xuebijing in previous studies of SCAP and sepsis, so now we are observing whether it is effective for the treatment of severely and critically ill patients infected with the novel coronavirus. We have learnt that a study on 156 severely and critically ill patients in 32 hospitals has found promising results for Xuebijing Injection combined with basic treatment among some cases. However, final conclusions can't be made until the research is finished. At least given the current situation, Xuebijing Injection might be a very important therapy for the treatment of COVID-19, especially for the treatment of severely and critically ill patients.

Of course, there is also a lot of concern about the safety. However, the post-marketing safety research of Xuebijing Injection showed that its clinical adverse reaction rate was no higher than 1%, which is basically safe. As a multi-target therapy of the COVID-19 treatment, I believe that traditional Chinese medicine, combined with current traditional therapies, will certainly save more lives of severe and critical patients. Thank you.

Xinhua News Agency:

According to current research, which traditional Chinese medicines are most effective for treating COVID-19 and how did you evaluate their efficacy? Thank you.

Zhang Boli:

Thank you for your question. Don't panic if you have good medicine in your hand. Every time after a major epidemic, good medicines will emerge. There's a saying that goes, "good medicine comes from a terrible plague." There is no specific drug or vaccine to treat COVID-19, so just like our fellow practitioners of Western medicine, we have focused on finding effective existing drugs. Meanwhile, we have developed several new drugs and prescriptions, which Ms. Yu just mentioned: "three drugs and three prescriptions." Since Professor Qiu has made a very good introduction of Xuebijing Injection, I would like to mainly introduce the Jinhua Qinggan Granule and the Lianhua Qingwen Capsule.

The Jinhua Qinggan Granule was developed during the 2009 H1N1 influenza pandemic, and was already available on the market. The drug itself is the combination of two drugs: one is Maxing Shigan Decoction from Shanghan Lun (the Treatise on Cold Pathogenic Diseases), and the other is Yinqiao Powder from Wenbing Tiaobian (the Detailed Analysis of Epidemic Warm Diseases). By now, Maxing Shigan Decoction has been used for 1800 years, while Wenbing Tiaobian has a history of 300 years. Therefore, both are effective prescriptions which stand the test of time. The drug's main effects are dispelling wind, ventilating the lungs, clearing heat and removing toxicity. During the course of its development, Wang Chen, an academician of the Chinese Academy of Engineering, performed a RCT (randomized control trial) study, and published a paper in the American journal Annals of Internal Medicine to demonstrate that the drug is as effective as Tamiflu in treating H1N1 influenza, but has less adverse reactions and a lower price.

We have also done a 102-case clinical RCT study at the frontline in Wuhan. The results showed that in treating mild and moderate patients of COVID-19, patients who took the Jinhua Qinggan Granule, compared to the control group, reduced their rate of turning more severe by two thirds, and decreased their fever 1.5 days faster. At the same time, white blood cell, neutrophil and lymphocyte counts reflecting immune function were significantly improved. The results proved that the Jinhua Qinggan Granule dose have an effect, especially in reducing the rate of patients turning severe and improving immunological indicators.

Beijing You An Hospital has conducted clinical observations on this medicine given to over 80 patients, and found it shortened the time taken to obtain a negative nucleic acid test result by 2.5 days. The absorption of pneumonia exudate started to show improvement two or three days earlier than those in the control group, with leukocytes and lymphocytes increasing significantly. Therefore, we consider this an effective medicine to treat the COVID-19, and is widely used in the clinic. 

Prescribed by academician Wu Yiling during the fight against SARS, Lianhua Qingwen medicine can detoxify the lungs and clear dampness and heat. It has shown curative effects on mild and common COVID-19 patients. China has donated 100,000 boxes of Lianhua Qingwen to Italy, and I also heard that Italy would like another 100,000 boxes. 

A total of 284 COVID-19 patients from 23 hospitals in nine provinces and municipalities were involved in a random controlled trial (RCT) guided by academician Zhong Nanshan, academician Li Lanjuan and myself. Research showed that, compared with the control group, the symptom disappearance rate of the treatment group was higher and the duration of symptoms was shorter. About 83.8 percent of the patients in the treatment group saw an improvement in their lung scan images, and 78.9 percent recovered, while the figures for the control group were respectively 64.1 percent and 66.2 percent. As for the rate of mildly-ill patients entering a more severe infection was 50 percent lower for the treatment group than the control group.

In-vitro studies also showed that Lianhua Qingwen has an inhibitory impact on the novel coronavirus outside the body. So, how to distinguish it from Jinhua Qinggan in the clinic? Well, those with low-grade fever and a severe headache could take Jinhua Qinggan, while those with high-grade fever and dry stool could be given Lianhua Qingwen. Thank you.

US network NBC:

It was reported that China has flown medical materials to Italy and dispatched a medical team consisting of TCM experts. Many people don't believe TCM is scientific. Are you worried that Western patients may be not ready to receive TCM treatment? Thank you.

Huang Luqi:

Thanks for your question. I am not worried at all. I don't worry because I am confident in TCM and the practice confirms this. Belonging to totally different medical systems, TCM and Western medicine study diseases and health from different perspectives based on clinical efficacy. Just now, Ms. Yu Yanhong mentioned Chinese scientist Tu Youyou, who received the 2015 Nobel Prize for Physiology or Medicine for her work in helping to discover artemisinin, which is widely used to treat malaria. Based on clinical efficacy, TCM has now been spread to 183 countries and regions. Statistics from the World Health Organization (WHO) show Chinese acupuncture has been recognized by 103 WHO member countries. The 72nd World Health Assembly passed the Eleventh Revision of the International Classification of Diseases that, for the first time, adopted chapters on traditional medicine originated from TCM.

Based on clinical efficacy, Ms. Yu introduced you to the "three medicines and three formulas", and Mr. Qiu and Mr. Zhang briefed on other three prescriptions. Now, I will also elaborate on the "three formulas" in accordance with their clinical efficacy.

The first formula is the Lung Cleansing and Detoxifying Decoction which is derived from several classic recipes including Ephedra, Apricot, Kernel, Gypsum, and Licorice Decoction, Belamcanda chinesis and Ephedra Decoction, Minor Bupleurum Decoction, and Poria Five Powder. It can be used as a general recipe for treating mild, moderate, severe and critically-ill patients.

Out of the 1,263 patients at 66 designated medical institutions in 10 provinces (excluding Hubei), 1,214 or 96.12% have been discharged from hospital after recovery. According to clinical observation, among the 57 patients with severe symptoms who received TCM treatment combined with Western medicine and took the Qingfeipaidu Formula, 42 or 73.7% have been discharged from hospital after recovering and none developed into critical cases. A comparison of CT images showed that lesions in the lungs of 53 patients (or 93%) had more or less shrank in size after they took the Qingfeipaidu Formula for two courses of treatment (six days).

Data from clinical studies suggest that the Qingfeipaidu Formula has played a positive role in preventing mild and common cases from worsening into severe and critical ones. By avoiding a deterioration in the patients' conditions, the medicine has greatly reduced the mortality rate and blunted the harm of the epidemic.

The second formula is the Xuanfeibaidu Formula, which was derived from several classic formulas, including Maxingshigan Decoction, Maxingyigan Decoction, Tinglidazao Xuanfei Decoction, and Qianjinweijing Decoction. A case-control study was conducted at Wuhan Hospital of Traditional Chinese Medicine and Hubei Provincial Hospital of Integrated Chinese & Western Medicine to compare the outcomes of 70 patients who took the formula with a control group of 50. The study proved the significant efficacy of the formula in controlling inflammation and increasing lymphocytes. Compared with the control group, the lymphocyte recovery of the patients treated with the formula was 17% higher, and the clinical recovery rate was 22% higher.

The First Affiliated Hospital of Henan University of TCM treated 40 mild and common patients with the formula. After taking the formula for an average of 9.66 days, the patients saw the nucleic acid test turn negative. None developed into severe or critical cases, and the improvement rate by CT diagnosis was 85%.

Wuhan Hospital of Traditional Chinese Medicine, Hubei Provincial Hospital of Integrated Chinese & Western Medicine and the makeshift hospital in Wuhan's Jiangxia district conducted a cohort study among 500 patients treated with the formula. The study showed that the symptoms of mild and common patients, including fever, cough and fatigue, were significantly alleviated, as shown by CT scans, and none turned into severe cases.

The third formula is the Huashibaidu Formula, developed by the national TCM team from the China Academy of Chinese Medical Sciences. It is based on the recommendations of the early national diagnosis and treatment plan as well as experiences from clinical practice.

Clinical observations were conducted at Wuhan Jinyintan Hospital, the makeshift hospital in Wuhan's Dongxihu district and the health center of Wuhan's Jiangjunlu street on the curative effect of the formula for severe, common and mild patients respectively. CT images of the 75 severe patients at Wuhan Jinyintan Hospital showed significant improvements in lung conditions and clinical symptoms. The time it took to turn the nucleic acid negative and the length of hospital stay was shortened by an average of three days. The efficacy was further confirmed by a study on 124 common patients at the health center of Wuhan's Jiangjunlu street, as well as randomized controlled observations of 894 mild and common patients (452 were treated with TCM) at the makeshift hospital in Wuhan's Dongxihu district. No adverse reactions related with the medicine were identified after monitoring the hepatic and renal functions of the patients who took the Huashibaidu Granule. In addition, an experiment on guinea pigs with the coronavirus found the formula can reduce lung viral load by 30%.

The National Medical Products Administration approved clinical trials of the Huashibaidu Granule on March 18. The research and development process of TCM is different from that of chemical or biological medicines. The Huashibaidu Formula is derived from clinical practice. The approval document has provided material evidence for the theories and clinical efficacy of TCM, and an opportunity to effectively translate the research data of TCM into high-level clinical evidence.

After receiving the approval, a great number of foreign friends asked us for the medicine. They nicknamed the formula "Q-14." The letter Q stands for "cure," while "14" refers to the fact that the medicine is composed of 14 herbal components. As the saying goes: "One for all, and all for one." We are ready to stand together with the people of other countries to fight the coronavirus, and share our experiences and achievements in TCM. Thank you.

The Kyunghyang Shinmun:

TCM was known to have been included in the treatment of diseases such as SARS and MERS. Are there any differences in TCM treatment for COVID-19 and SARS? If so, why did you make such changes? Thank you.

Liu Qingquan:

Thank you. Just now, Ms. Yu Yanhong, Mr. Zhang Boli, and Mr. Huang Luqi answered your question to some extent. TCM has been used to treat infectious diseases for thousands of years and we have developed a relatively mature scientific law during the process. The treatment of infectious diseases mainly focuses on three methods, namely clearing heat, eliminating dampness, and detoxing. Each method will be prioritized according to the causes of different infectious diseases. Several famous classic prescriptions have been developed over thousands of years. Earlier, Mr. Zhang Boli and Mr. Huang Luqi introduced that some TCM prescriptions have proved to be effective in treatment, such as the Maxing Shigan Decoction and Daqinglong Decoction of Zhang Zhongjing, a renowned Chinese physician in Eastern Han Dynasty (25-220); Reed Decoction recorded in "Qianjin Yaofang" (Essential Prescriptions Worth a Thousand Pieces of Gold) by Chinese pharmaceutical expert Sun Simiao of the Tang Dynasty (618-907); Membrane Source Opening Beverage by Wu Youke, a renowned physician of the Ming Dynasty (1368-1644) specialized in infectious diseases; and Yinqiao San (Lonicerae and Forsythiae Powder) and Zhengqi San (Qi-Righting Powder) by Wu Jutong of the Qing Dynasty (1644-1911). These prescriptions can be used in the early stages of the disease to eliminate pathogen and strengthen vital qi. TCM can quickly mobilize the human body's defense system to evict invading enemies and prevent viruses from causing significant damage to the body. For example, the method of eliminating dampness boosts immunity, like boosting the morale of military forces. In Chinese, "mianyi" (immunity) is a word with TCM characteristics, meaning preventing epidemic disease. The method of detoxing is equivalent to giving the enemy (virus) a head-on blow. The method of clearing heat can change the internal environment of the human body so that the virus cannot escape or hide. Therefore, these treatment methods can be used together to defeat the virus.

In the past two decades, China has developed several new prescriptions based on classic ones while dealing with the outbreak of new infectious diseases. For example, as Mr. Zhang Boli just mentioned, we introduced Lianhua Qingwen capsule/granule, a drug for virus infections, during the SARS outbreak in 2003. And several domestic academicians, including Mr. Wang Chen and Mr. Zhang Luqi, were inspired to develop Jinhua Qinggan granule to cope with the H1N1 pandemic in 2009. This proves the efficacy of TCM and its role in the fight against modern infectious diseases.

As for new diseases such as COVID-19, these conventional drugs have been put into new use. Clinical studies show that Jinhua Qinggan granule and Lianhua Qingwen capsule/granule have apparent efficacy for the clinical treatment of COVID-19 patients with mild and moderate symptoms and play a significant role, especially in the treatment for COVID-19 in Wuhan.

Xuebijing Injection has a clear phased effect in treating "inflammatory storm" and coagulopathy. Just now, Mr. Qiu Haibo gave a detailed introduction about Xuebijing Injection. I am not going to elaborate on it anymore.

In the battle against COVID-19 in Wuhan, based on the three methods, we have developed three effective prescriptions from classic ones, namely lung-clearing and detoxing decoction, dampness-eliminating and detoxing prescription, and lung-ventilating and detoxing prescription. This is a process that seeks innovative ways to treat various diseases. Thank you.

The Star:

What kind of TCM diet therapy or treatment can help people improve their immunity and enhance the cardiopulmonary function to fight against the virus? Thank you. 

Huang Luqi:

Thank you for your question. I know that traditional Chinese medicine is quite popular in Malaysia. People there have a good knowledge of TCM. So, I would like to quote two sentences from the Medical Classic of the Yellow Emperor (Huang Di Nei Jing), an ancient TCM document, to answer your question:

The first sentence is "Shang Gong Zhi Wei Bing", which means that the best doctors perform preventive treatment. Preventive measures are highly valued in TCM. In the fight against the COVID-19 epidemic, preventive measures have also played an important part. In accordance with the requirements of the health commission of Hubei province, medical workers working at the Fangcang shelter hospitals were provided with preventive prescriptions taken in the form of both medicine and food, and none of them have been infected so far.

The other sentence is "Bu Xiang Ran Zhe, Zheng Qi Cun Nei, Xie Qi Ke Gan, Bi Qi Du Qi". This theory emphasizes the improvement of bodily resistance, which can be achieved through physical exercises of TCM features such as taichi and baduanjin, or by taking TCM products serving as both medicine and food. Health-building diets, taken according to TCM theories, are effective in building immunity to realize the goal of improving bodily resistance and eliminating pathogenic factors. The theory also emphasizes the importance of warding off epidemic diseases, which can be achieved by home isolation and disinfection of the living environment. 

TCM theories also hold that mental health is important to improving bodily resistance. This means that, during an outbreak, we should pay more attention to balancing work and rest, harmonizing form and spirit, and keep a sound mental attitude, so we will not be susceptible to the attacks of epidemic diseases. Thank you.

China News Service:

The number of patients infected with COVID-19 has been reduced remarkably in the hospitals in Wuhan and Hubei province in general. Many of the remaining patients are severely or critically ill. For these patients, how could TCM play a bigger role in treating them? Thank you.

Liu Qingquan:

Thank you for your question. The issue you raised is very important. The treatment and cure of critically-ill patients is very important to the reduction of mortality rate at the moment. I am a doctor of intensive care medicine and an emergency physician, except that I study critical care medicine from a TCM perspective. In recent clinical treatment of COVID-19 patients over a period of more than two months, I have been talking to Director Qiu Haibo and Professor Du Bin about the relevant issues. In the two-month period, we gradually gathered experience in treating patients with a combination of TCM and Western medicine to reduce mortality. The National Health Commission and the State Administration of Traditional Chinese Medicine built a team of experts to offer guidance to conduct coordinated TCM and Western medicine treatment to treat the severe cases. TCM and Western medicine professionals worked together to treat patients with a combination of medicinal methods. Western medicine's life support technologies are very important methods to treat critically-ill patients, such as use of ventilators, hemofiltration, ECMO (extracorporeal membrane oxygenation), and maintaining water and electrolyte balance. TCM doctors have used medicines such as Da Huang (Rheum palmatum L.) to clear the hollow viscera. To tackle asynchrony between the patient and the ventilator, they found ways to lower dosage and shortening the duration in the use of tranquilizers, painkillers and muscle relaxants. Medicines such as Shenmai Injection, Shengmai Injection and Pure Ginseng Decoction were used to stabilize the circulatory system and blood oxygen saturation. Xuebijing Injection was used as a therapeutic intervention for cytokine storm. TCM methods have been working well in coordinated treatments. 

In the process of visiting patients while integrating TCM and Western medicine therapies, our Western medicine experts focus on standardizing the treatments, such as through the use of mechanical ventilation, the use of hemofiltration, choosing the best time for tracheal intubation, and so on. TCM doctors, based on such problems mentioned above, have promoted the use of TCM for the severe and critically ill patients. The organic combination of TCM and Western medicine brings out the strengths in one while making up for the other's weaknesses, thereby reducing the mortality rate. These are indispensable Chinese experiences in treating severe and critically ill patients with COVID-19 and reducing the mortality rate. In the global response to the epidemic, these experiences can be provided to countries around the world for use, and ultimately help the mortality rate of severe and critically ill patients decline further, and further alleviate the condition. Thank you.

Bloomberg:

Which countries has China given advice to on TCM in the treatment of COVID-19? And have other countries used TCM in their treatment? What have the results been?

Yu Yanhong:

Thank you for your interest in the international cooperation regarding TCM. The public health crisis is a common challenge facing mankind, in which solidarity and cooperation are the most powerful weapons. After the COVID-19 outbreak, many countries and people gave selfless aid to China. People from different countries called out "Stay strong China, stay strong Wuhan," making us feel understanding, support and trust from beyond national borders. Now that the epidemic is breaking out at many locations in many countries, China is willing to cooperate with countries in need in the epidemic prevention and control with TCM and to provide aid within our capacity. The following works have so far been carried out:

First is sharing treatment experiences. We are actively cooperating with the WHO in a timely manner, sharing relevant information on the use of TCM in epidemic prevention and control, translating the latest Chinese versions of the COVID-19 diagnosis and treatment plan into English, putting the full text on the new media outlet of the National Administration of Traditional Chinese Medicine, and actively sharing it with other countries and regions in need. You can check these texts online at any time. These versions of the plan are the most valuable experiences obtained from the centralized management and treatment of tens of thousands of patients over a short period of time. This is indeed precious and the results are very clear. We have also provided technical solutions through remote video conferences for exchanges, and shared treatment experiences with Japan, South Korea, Italy, Iran, Singapore and other countries. For example, Professor Zhang Boli, Professor Liu Qingquan, and President Qiu Haibo, who sit with us today, have carried out several video conferences and international online exchanges. A few days ago, Mr. Zhang Boli connected and exchanged online with counterparts in the United States. Yesterday, Academician Tong Xiaolin also participated in a remote video consultation to check patients far away in Iran.

Second, we have donated TCM products. The donations of these products, such as Chinese patent medicines, prepared slices of Chinese crude drugs, and acupuncture needles, from relevant domestic organizations and institutions, have been delivered to more than ten countries and regions, including Italy, France, and China's Hong Kong and Macao special administrative regions. Since Mr. Zhang and Mr. Huang have detailed the issue, there is no need for me to repeat it.

Third, a number of TCM experts and practitioners have been selected to provide overseas medical assistance. We have noted that some experts have already headed to Italy and Cambodia to lend a hand in the fight against the virus. Based on my knowledge, some TCM experts have also kept close contact with their overseas counterparts, and the feedback has been positive.

Friends from the media, as an oriental wisdom formed in the practices of understanding, interpreting and revealing relations between life and death, TCM has offered up its approaches to prevent the outbreak and exacerbation of infectious diseases. Therefore, its legacy is worthy of being inherited, developed and utilized. During her acceptance speech, Chinese Nobel laureate Tu Youyou said that TCM is a great treasure-house and Artemisinin is a gift from TCM to the world. It is my belief that TCM has always been an essential tool in dealing with epidemics. We are willing to join hands with all countries around the world to defeat COVID-19 and usher in a new glorious era whereby the health of the human race is much improved. Thank you.

Xi Yanchun:

We are much obliged to the speakers here today. No matter whether they are government officials or TCM experts, they went to Wuhan and braved the virus outbreak there for more than two months from winter to spring. For this, we deeply admire them, especially Mr. Zhang, who is at an age above 70. Therefore, please allow me to take this opportunity to pay homage to them again.

Recently, the newly confirmed cases in Hubei province have dropped to zero for several consecutive days. Under the strong leadership of the CPC Central Committee with General Secretary Xi Jinping at its core, with full support from other parts of the country, and with the strong will and mutual help among the people in Hubei province, especially in Wuhan, we finally achieved what we had long expected. Now the cherry trees have blossomed to announce the commencement of spring. On this bright sunny day today in Wuhan, I would like to take this opportunity to wish a more promising future for Wuhan, for Hubei and for China. I would also like to again thank the guests and all of you. Today's press conference has now concluded.

Experts from Peking Union Medical College Hospital attend a press conference held by the State Council Information Office in Wuhan, central China's Hubei province, March 16, 2020. [Photo/China SCIO]

Speakers:

Du Bin, director of Medical ICU, Peking Union Medical College Hospital; chairman of the Intensive Care Medicine Branch, Chinese Medical Doctor Association

Yan Xiaowei, deputy chief of the Department of Internal Medicine, Peking Union Medical College Hospital

Cao Wei, associate chief physician, deputy head of the Department of Infectious Disease, Peking Union Medical College Hospital

Wu Dong, associate chief physician at the Department of Digestive Disease, Peking Union Medical College Hospital

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office 

Date:

March 16, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media, good afternoon. Welcome to today's briefing. Now, the COVID-19 epidemic has become a common challenge facing the whole world. In order to save people's lives, the Chinese government has acted decisively and launched a large-scale rescue mission. In a very short time, China has dispatched over 330 medical teams and sent more than 40,000 medics to the virus-hit Hubei province. Today, it is a great honor for us to invite four experts from among those 40,000 medics. All of them are from the Peking Union Medical College Special Aid Medical Team. They will share their experiences in the treatment of COVID-19, especially in severe cases in Wuhan. Before I introduce the distinguished experts, let's watch a short video about them.

Welcome back. Please allow me to introduce to you the four experts from Peking Union Medical College Hospital: Professor and Dr. Du Bin, director of Medical ICU. He is also the chairman of the Intensive Care Medicine Branch, Chinese Medical Doctor Association. Professor and Dr. Yan Xiaowei, professor of cardiology and deputy head of the Department of Internal Medicine. Dr. Cao Wei, associate chief physician and deputy head of the Department of Infectious Disease. Dr. Wu Dong, associate chief physician at the Department of Digestive Disease. Now, I would like to let them say a few words about their team and also about themselves. Dr. Du, please. 

Du Bin:

Good afternoon, ladies and gentlemen. This is Dr. Du Bin, again. I'm one member of the national expert team as well as a member of our team. I spent the last two and half days visiting five different hospitals in five cities to review the most critically ill patients with COVID-19 there, and I just rushed back to Wuhan a few hours ago. I would like to say a few more words about our team.

As you may know, Peking Union Medical College Hospital has been the number one hospital according to the "national best hospital rankings" for about 10 years. It's the responsibility of my colleagues and I to participate in the medical rescue team, when the local health care resources have been overwhelmed by the COVID-19 outbreak. We spent the first couple of days remodeling one of the general wards into an intensive care unit and started admitting the most critically ill patients with COVID-19 on Feb. 4.

It is not just ourselves fighting alone against COVID-19. We have strong support from the teams of Tongji Hospital, as well as other medical rescue teams. In addition, we also have very strong support from our colleagues in our hospital back in Beijing, through weekly teleconferences to communicate with them about the most difficult cases. This can maximize our efforts in order to rescue the lives of patients. Thank you.

Xi Yanchun:

Thank you very much Dr. Du. Professor Yan, please go ahead.

Yan Xiaowei:

Hi, good afternoon, ladies and gentlemen. I'm Dr. Yan from the Internal Medicine of PUMC Hospital. My duty in Wuhan is to coordinate the different departments of internal medicine for successful performance. I also propose and organize the MDTs with PUMC Hospital. As a cardiologist, I'm also responsible for the management of COVID-19 patients complicated by cardiac events and those with previously established cardiovascular diseases. Thank you.

Xi Yanchun:

Thank you very much Dr. Yan. Dr. Cao, please. 

Cao Wei:

Good afternoon, ladies and gentlemen. I'm Dr. Cao Wei from the same hospital. I'm a physician of infectious diseases, and I treat patients with different infections. I arrived in Wuhan on Feb. 7 and have been here ever since as a member of the national medical team of PUMC Hospital. As a team, we worked together, as Dr. Du said, to set up an emergency intensive care unit, and have been taking care of critically ill patients with COVID-19 in Wuhan. Personally, I participate in the clinical care of these patients and I'm also involved in the coordination of the clinical collaboration with local hospitals here in Wuhan. Thank you.

Xi Yanchun:

Thank you very much, Dr. Cao. Lastly, Dr. Wu, please. 

Wu Dong:

Thank you, good afternoon. I'm Dr. Wu Dong, an associate professor in gastroenterology in PUMC Hospital. I've been working there since 2003, the year when SARS epidemic took place. I came to Wuhan about five weeks ago and I took the service here as a calling to myself, because last time I wasn't offered the opportunity to fight coronavirus, and I didn't want to miss it this time. So, currently I'm an attending physician working in the ICU, taking care of patients who are very sick. I'm very glad to share my experiences with you. Thank you. 

Xi Yanchun:

Thank you very much to all the experts. You're doing a great job because you're saving people's lives, competing against death. The floor is now open for questions. Please identify your news outlet before asking your question. Please raise your hands. OK, in the left area, the first line, the gentleman in the blue shirt, please.

Reuters:

Hi, I'm from Reuters and I have three questions. First, what is the current risk of reinfection amongst recovered patients in China? Second, how does the weather affect infection rates, and should we expect higher or lower rates of infection as it gets warmer? Last, when can we expect to find patient zero in China? And what clues do you have so far? Thank you. 

Du Bin:

Dr. Yan, would you please answer the first question and Dr. Cao the second.

Yan Xiaowei:

Thanks. The first question is about re-infection. Actually, reinfection is a problem after patient discharge from hospital. In China, a patient discharged from hospital in recovery from COVID-19 will be followed regularly at in two weeks and four weeks after discharge. The patient will also be monitored by local inspectors.

They will be asked to isolate themselves at home for at least two weeks. Also, they will be asked to take their temperature twice a day. If the temperature relapses, the patient will be sent to hospital for a chest CT scan and nucleic acid detection. One point I would like to address is that a positive nucleic acid test on its own doesn't mean that the patient has the intact virus particle in his body. Also, it doesn't mean the patient is infectious. So, a positive nucleic acid test alone which can be seen after virus infection is not a sign of reinfection. 

So, if we think a patient is re-infected, we should check for fever and the progression of the chest x-ray. Thank you for your question.

Xi Yanchun:

And Dr. Cao, please.

Cao Wei:

I'll take the second question. I bet that's a question many people are interested in. Currently, there has been no data regarding COVID-19 and its relation with the weather. But if we take a look from the past experience of SARS, which was another coronavirus, we can see that there are multiple factors that influence the rates of infection. For example, the gradual loss of virulence with the progression of time or regaining of virulence, because of mutation and other joint measures of prevention and control, etc. among them. Unfortunately, the impact of the weather hasn't been confirmed yet. Thank you.

Xi Yanchun:

Next question, please. In the middle area, the first line, the gentleman in the dark suit. Thank you very much. 

CGTN:

Thank you very much, I'm from China Global Television Network. Could you please introduce the latest situation of the combined method of treating COVID-19 patients with traditional Chinese medicine (TCM) and modern medicine? Also, what kinds of patients are generally being treated with TCM methods? And how effective have they been? Thank you. 

Du Bin:

I'll take the question. I think some of my colleagues might add some comments after my words. It's my belief that traditional Chinese medicine (TCM) is both familiar and unfamiliar to our practitioners of Western medicine. Every day in Wuhan, we're working together with our colleagues from the traditional Chinese medicine department. It seems to me, at least in my mind, that traditional Chinese medicine works quite well in patients with mild disease and in those who have been recovering from critical illness. However, I do notice that people are suspicious of the efficacy of traditional Chinese medicine. I would say that TCM and Western medicine do not share the same philosophy. They have quite different philosophies. They have quite different evaluation systems for efficacy. 

For example, whenever we have the chance to test the efficacy of a specific medication in Western medicine, we will try to separate patients into different groups, and give those who are assigned randomly to the experimental group or the study group a specific drug at a fixed dose and fixed duration. Then we try to interpret any difference between the experimental group and the control group with regards to clinical outcomes as a manifestation or an evidence of the efficacy or safety of the specific drug. However, this is not the case for traditional Chinese medicine. From my own observation, when working with the TCM practitioners, I noticed that even for patients with quite similar appearances from my personal point of view, they would prescribe quite different medications with different doses every day. This makes the evaluation system futile or invalid. 

So it's very hard for us to assess the efficacy and safety of TCM from the Western medicine point of view. But my belief is that we should respect each other. We should know that both Western medicine and traditional Chinese medicine have their own strengths and weaknesses, and we should learn from each other. We also encourage our colleagues in the TCM sector to adopt our system of evaluation or assessment in order to let not only us but also the international community understand what they're doing. Thanks.

Xi Yanchun:

Does anyone want to add some words? 

Wu Dong:

I do have some comments. First of all, I agree with Professor Du that we don't have panacea here. We don't have any specific anti-virus drug or medication that has been proved effective. But from a perspective of gastroenterology, which is my specialty, I would like to say that at least in some cases, traditional Chinese medicine seems work well. Because we know that for some patients in ICU, their bowel movements just stop, and their abdomens are quite distended. In several cases, the condition is severe enough to force us to stop enteral nutrition, which we all know is essential for the patient to recover. So we use TCM to treat this type of patients. I would say that they have a very good laxative effect, which enables us to continue to feed them. Thank you. 

Xi Yanchun:

Ok. Next question, please. The gentleman in the first row in the middle area, who, I guess, is from India. 

Press Trust of India:

Thank you. First of all, let me compliment the doctors, not simply those who are here, but hundreds of their colleagues who went to this epicenter and tried to confront this virus or the vicious virus head-on. Definitely, today as the virus winds down as well as the figures in Wuhan and probably in Hubei and the rest of China, the question being asked is, will there be a relapse? Will there be a second wave that can come up at a later stage or anytime soon here, because it's happening all over the world now. Secondly, there is not much data that has come out about the virus' impact on children. Now that there is debate about when the schools should be reopened, not simply here, but as well in places where this virus is popping up perhaps. What exactly is or are you rather reading about this virus' impact on children of different ages? Thank you. 

Du Bin:

I'll ask my colleague, Dr. Cao Wei, to answer the question about the relapse. And I'll take the question about the children. 

Cao Wei:

Thank you. I will take the first question. We all know that the status of pandemic has been declared by the WHO a few days ago, which means that the situation of the epidemic globally will not be solely dependent on the situations in China or any other single area or country in the world. Currently, after three months of fights, the outbreak in China, which started in December of last year, has almost come to an end. 

I think we will still wait for another month to see and make a final judgment. But for me, a second domestic outbreak in China wouldn't be a great concern under such measures of prevention and control. But we all know that another important source of newly onset cases now comes from the imported patients from outside China. So it is most probable that the newly reported cases, including the imported ones, may be kept at a relatively low level, but may last for a certain period of time. Thank you. 

Du Bin:

Okay. The second question is concerning COVID-19 in children. Actually, from my observation and discussion with the pediatricians, we know that there are some children that contracted COVID-19. However, the majority of them are doing quite well. There are actually three recent publications, one in JAMA describing nine infants, all under the age of one year old. The other one is about six children, with ages ranging from two to seven years old. Among all these 15 children, only one was admitted to the intensive care unit requiring some sort of supportive therapy, including oxygen therapy; however, all children survived. 

Another paper just published earlier today in Nature Medicine described that, among all the close contacts, the adults have a higher likelihood -- about 2.7 times -- of contracting COVID-19 than children. We currently don't know what the rationale is behind this phenomenon, but we do understand that -- despite the fact they got infected -- the majority of children exhibited a mild disease course, and all of them recovered. According to my understanding, this is what is happening in Wuhan, Hubei, and other provinces. Thank you. 

Xi Yanchun:

Ok, next question, please. The gentleman in the right area in the 3rd row in the suit.

Dutch Public Broadcaster:

Thank you very much. With NOS the Dutch public broadcaster. Doctors, could you give us a bit of an insight into how the situation is now in the hospitals in Wuhan? We've seen that several temporary hospitals have been closed down. Also, what I would like to know, since we're talking to the best doctors of this country, what advice or lessons would you like to share with people on the frontline in other countries that are facing the start of the epidemic, for instance the Netherlands? Thank you very much.

Du Bin:

Is there anyone who wants to answer the question? I'll answer first. Yes, you are right. I believe that all mobile cabin hospitals have been closed. Some of the designated hospitals for COVID-19 have also been closed, either discharging their patients or transferring their patients to other designated hospitals. It seems to us that, like Doctor Cao just said a minute ago, the outbreak of COVID-19 in Wuhan and Hubei has come to an end. 

We should be alert, though, to any abnormal signals or sporadic cases that rise from communities, what is happening during these days, and the imported cases from other countries out there and anywhere else. The second question: what kind of lessons or cleanup experience we can share. There are so many things. However, I should say the most important thing when combatting infectious diseases, such as COVID-19, is to prevent and control the disease rather than treatment. Thus, treatment is only secondary. Prevention and control are the primary goals. Previously, I remember talking about planning. You must have a plan. Failure to prepare is preparedness for failure. So even now, in Wuhan and Hubei, we have fewer newly diagnosed cases, but we should remain alert and prepare for future sporadic cases and imported cases, as well as learn from our own experiences of success and failure. Thanks.

Xi Yanchun:

Yes, Dr. Yan, please. 

Yan Xiaowei:

To my overseas colleagues, I would like to address two points. The first is to the doctors: you should take good care of yourself from the coronavirus infection. This is the precondition for you to take care of patients. Also, it's a precondition to protect your colleagues and your family. My second point is the public should be educated widespreadly for the protection of themselves.

It is not complicated. Just wash your hands, wear a mask, and avoid gathering, etc. Otherwise, health care facilities and systems will be overwhelmed by the outbreak of COVID-19. Thank you.

Xi Yanchun:

Okay, Dr. Wu, please. 

Wu Dong:

I want to share a few words with the general public of other countries. I want to say that we totally respect that every nation, every person, has their own condition that could be very different from others. 

We are not saying that this is the Chinese example and you should follow. We're not saying this. We totally respect that you should take your own actions. But every one of us should take this very seriously, take necessary actions, change your behavior, and be responsible. As for the medical community, I would like to say that we have to protect them because, in the last few days, we know that our European colleagues have also contracted the disease during daily practice. And the proportion is quite similar to that in the early stages in Wuhan. 

So we need to protect our medical staff working in the ICU. The environment is quite stressful. The mortality is relatively high. As a physician, you will lose some of your patients from time to time, no matter how hard you have been trying to save their lives. This could easily damage the morale of the ICU staff. So I suggest them to rest and relax. You need to take very good care of yourself. Thank you. 

Xi Yanchun:

Ok. Next question, please. The gentleman in the right area in the second row, please. 

People's Daily:

Thank you very much. I am from the People's Daily English language app. As we all know, some countries are short of medical resources, so, the majority of patients with mild symptoms have to stay at home in isolation. My question is: which alarming signals should they heed to prevent dangerous escalation? Thank you. 

Xi Yanchun:

Dr. Cao, please. 

Cao Wei:

Thank you. First, if you have to stay at home in isolation because of other reasons, the first important thing is to identify or ensure that you are the right person who can accomplish this. This means you are not associated with identified risk factors of deterioration, such as elderly people, people with multiple comorbidities, including hypertension, diabetes, chronic lung diseases, or other chronic diseases. Secondly, if you are young and generally healthy, and you have decided to stay at home in isolation by yourself, then it is very important for you or one of your family members to keep a close eye on your symptoms or feelings. 

Once you begin to have a persistent high fever or when you begin to feel short of breath, or maybe you feel altered mental status, it is time for you to go to the doctor and seek help. The last and most important thing during your home isolation period is to make sure not to let your family members get the virus from you. There are multiple measures of prevention and protection for the family members, and you can get the full version from the WHO website. I'm sure. Thank you. 

Xi Yanchun:

Okay, next question. The lady in the middle area in the third row from South Korea. 

The Kyunghyang Shinmun:

Thank you. I'm a journalist from South Korean newspaper. The problem of COVID-19 infection by medical staff in Wuhan is a little bit serious. What protective measures are the medical staff taking? Please explain the local situation as a medical team. Thank you. 

Du Bin:

Thanks for your question. I do believe that my colleague Dr. Yan has already answered the question. But any way, I may add a few words that as Dr. Yan said that there are multiple reasons, multiple factors, contributing to the infection of COVID-19 in the health care workers, especially during the initial stage. 

One is the lack of knowledge that this is a human-to-human transmission disease. So you may know that a lot of health care workers have been infected in a couple of local hospitals in Wuhan, such as the Wuhan Central Hospital. This is the hospital that is located very close to the Huanan Seafood Market, that at the initial phase that many patients went there to see doctors, and the doctors didn't know. 

They didn't know that this is a human-to-human transmission disease. And the second important factor is the lack of personal protection equipment (PPEs), especially during the initial phase. And you can see that, as many external assistances came to Wuhan, as the supply of the PPEs became adequate, that as just mentioned by my colleague Dr. Yan, that no healthcare workers has been infected anymore. I mean during the second phase—if we can call it that. And another important lesson we learned is that, even within the same hospitals, some of the specialists—let's say, ENT doctors, and eye doctors—became easily infected, than their pulmonary colleagues, than their emergency colleagues, or their ICU colleagues. 

My personal interpretation is that, whenever you see an eye doctor or ENT doctor, he or she will have a very close contact with their patients, right? So that's the major reason for the phenomena that they got easily infected, in addition to the lack of knowledge of infectious diseases among these specialties. So, my belief is that it is important to let your colleagues—no matter what specialty they are—that they got educated, that they got trained about these infectious diseases, in order to prevent the nosocomial transmission of COVID-19. Thanks. 

Xi Yanchun:

Ok, next question, please. Middle area, second line. The gentleman. 

Bloomberg:

I'm from Bloomberg News. Thank you for taking your time to speak to us today. I'm sure you're all very busy. I have three questions. My first question is: What are the underlying conditions that really influence whether a patient survives or doesn't survive this disease? Dr. Cao mentioned various comorbidities, but are these the main factors you look for when you look at some patients who do and don't survive? My second question is: Now that you're saying that the outbreak in Wuhan and Hubei more generally are sort of petering out towards an end, what do you expect the case fatality rate to be across the whole province? I think in Wuhan, initially it was it was much higher than the rest of China. Do you expect the case fatality rate and Hubei to come down towards the rate in the rest of China? My third question goes back to the first question from Reuters: Do you expect to be able to trace the patient zero, where this disease cross from animals into humans? And is your expectation that will be linked to the seafood market that Dr. Du just mentioned? Thank you. 

Cao Wei:

I'll take the first question. As I just mentioned, there are some risk factors already identified for COVID-19 patients, including the elderly people, comorbidities, etc. And these are the risk factors you could identify before you go to the hospital, once you have been diagnosed. 

And there are also very important signals showing that you are transferring or you are processing from a mild type of case, or common type of case, to the severely or critically ill patients, which include the change or continuous decreasing of lymphocytes, which is the indication that your immune system is gradually being broken down. And also the elevation, or robust elevation of inflammatory markers, which is also another sign that the immune systems are activating. And also if there is progressing changes of the lung radiology, including the infiltrations of bilateral lungs. This is another important sign you should pay attention to, which indicates you might be going to the critically ill patients. 

Du Bin:

For the risk factors for mortality in patients with COVID-19, I do believe we are still waiting for more evidence coming from the investigations. Because previously during discussion with my colleagues, all of us believe that the hypertension is a risk factor for either the severe cases or the mortality rates. However, we also know that hypertension is associated with older age. 

So currently we have no idea, which is the confounding factor. Because these two risk factors—older age and the hypertension, diabetes as well—are closely correlated with each other. So we're still waiting for more evidence. However, according to current data, I agree with Dr. Cao that the lymphocytopenia is one of the signals, and probably the cardiac injury biomarkers is another signal for mortality. 

And the second question concerns the case fatality rate. I am sorry that I don't think this is the right time to calculate or estimate the case fatality rate. Even though, right now, the majority of the patients have been discharged back home, but we are still having more than 3,000 or 4,000 patients in the hospital. We still have no idea how many of them will survive, and how many of them will die. A certain number of them will die. Absolutely. So it's not the right time to estimate the case fatality rate at present. In my mind, the case fatality rate is a retrospective term rather than the terminology we can discuss right now. And we also know that the supportive, life-sustaining treatment employed in the intensive care unit may prolong the patient's life, which will make some early deaths into late deaths. That's one of the reasons for the later increase in the case fatality rate, as you can see. 

And the reason for a higher case fatality rate in Wuhan than in other provinces—that I just can't remember if I have already answered the same question in the last press conference or not, but anyway—in my mind that the reason number one is that there is always a learning curve. Our colleagues—the healthcare workers in other provinces—they learn from our experience, and they learn from our failures, so they can treat their patients better than us. And the second reason: They have much fewer cases than what we have here in Wuhan, in Hubei, which means that patient there had a better chance for better medical care. They have enough resources; they have enough human beings, enough health care workers around them; they have enough ventilators, monitors, and all the other devices. I don't think the difference can be explained by any genome mutation at the present time. But if this is the case, I'm not surprised. 

The last question concerns the number zero patient. I'm sorry, I'm not the right one to answer the question, because I think this is the task for the CDC staff. They should look for who is the index case for this whole outbreak. But currently, I have no idea what is going on there. Sorry for that. Thanks. 

Xi Yanchun:

OK. Next question, please. The middle area, the lady in the fourth line with long hair.

Hong Kong China Review News Agency:

Thank you. Hong Kong China Review News Agency. My question is about ECMO. We know that ECMO is recommended for rescue treatment for severe cases. How do you assess the role that ECMO had played so far? Are there enough ECMO equipment for severe patients in Wuhan? Thank you. 

Du Bin:

Thank you very much, for that is a specific question for ICU doctors like me, but not for my colleagues. I don't believe ECMO plays an important role in the whole outbreak. For example, according to data, a couple of days ago, there were 260 patients still on the ventilator, and there are fewer than 30 cases treated with ECMO. Apart from this, we still have more than 4,000 patients hospitalized. I think that you can have your own judgment based on this number, that ECMO—although a technical innovation, and to some of my colleagues working here and working in other provinces, is a life sustaining treatment—but I don't believe, based on these numbers, it plays a significant role in decreasing the case fatality rate. Of course, it is a device to buy the time for the patient in order for the definitive therapy to have some effect. So, my personal impression is that, no.

Xi Yanchun:

OK, next question. Right area, third line. The gentleman. 

NTV:

Thank you very much. I'm from Japanese TV. It's called NTV. My question is: In China, various new technologies, including 5G network or robots are used to fight against coronavirus. How do technologies help doctors? What do you think about the most dramatic change by these technologies? Thank you. 

Wu Dong:

Thank you. I will take this question. You raised the issue of new technology in this campaign. But first of all, please allow me to make clear that, I don't think it's new technology that we rely on to bring the situation under control. I think we have brought the situation under control because we are still following the classic theory of epidemiology, which is to control the source of infection, cut down the spread route, and protect those susceptible population. 

But on the other hand, in terms of new technology, I'm glad to share with you that by utilizing the 5G network, we have established a virtual online consultation system. We routinely have those online meetings with experts in PUMC hospital back in Beijing, so we can discuss some difficult and complicated cases with them almost face-to-face. I think this enables us to provide high-quality care to all of our patients. And also in our daily practice, we routinely use mechanical ventilation, bedside ultrasonography, continuous renal replacement therapy. I think these new technologies will give us more weapons or opportunities to fight the coronavirus and protect people. Thank you. 

Du Bin:

I only have a few words apart from what Dr. Wu said. As far as I know, the teleconference with doctors and experts back in their mother hospital, thousands of miles away, is a common practice within each national medical team here in Wuhan or in other cities in Hubei. So this is number one. 

And number two, the so-called virtual hospital, or virtual medical care system, is not only for us the doctors, but also for the patients. Whenever the patients are advised to stay at home, as patients with other diseases, other than COVID-19—especially in epicenters as like Wuhan or other cities in Hubei, that they are advised to stay at home—however, whenever they think there's any need to seek for medical advice, medical care, they can get access to the doctors through the virtual hospital or medical care apps. 

And third, as far as I know, some of the investigators are now trying to do some research that, with the use of the wearable devices, for those patients who are asked to do the home isolation or home quarantine, that some kind of artificial intelligence will tell what is the probability that they have the COVID-19 or the disease progression, and when is the right time to go to see the doctor, or you should be okay to continue staying at home. Thanks. 

Xi Yanchun:

Okay, the very last two questions: one for a foreign journalist and one for a Chinese reporter. The gentleman in the middle area, 3rd line. 

Wall Street Journal:

Thank you very much. I'm from the Wall Street Journal. Thank you doctors for sparing the time to do this. Dr. Du, you mentioned the importance of preventing and controlling the disease rather than treating it. I was wondering if you could go into a bit more detail about what you think were the most effective steps that were taken in Wuhan to prevent and control the spread of the epidemic, and at what point those came into effect. I was also wondering, you spoke a little about the fatality rate and I take the point that it's a little early to calculate that. But, given the evidence that the fatality rate does seem to have been higher in Wuhan, I was wondering if you could go into some more detail about why you think that was, particularly amongst medical workers. You spoke a little in the last briefing about treatment with steroids and invasive ventilation and I wonder if you could elaborate on that a little? With hindsight, is there anything that could have been done to avoid that or was it simply inevitable? Is there anything that you could advise other countries facing similar problems now? Thank you. 

Du Bin:

Okay, thank you very much for the questions. The first question was concerning the specific measures to control the epidemic. I'm not an expert for this, but anyway: test, test and test. Whenever you fail to do the nucleic acid test for COVID-19, you don't know who is the carrier, who is the patient, who should be quarantined and who are close contacts. 

I know there are different approaches than here in China, like what you're doing in the States. I'm not the one who make the judgment about which is right and which is wrong. But, apart from testing, I just have no idea how you can identify suspected cases and quarantine close contacts. I mean, there was just a question to Dr. Cao about what is the turning point. In my opinion, the major reason or decision that led to a turning point was when we had the opportunity to isolate all suspected patients and close contacts. That was the turning point of the outbreak here in Wuhan, and in Hubei.

Now for the second question about what specific factors contributing to the higher case fatality rates in Wuhan. I would say that a strong belief of mine is that delayed mechanical ventilation, delayed endotracheal intubation and long-term cortical steroids make a difference. I mean, they are major risk factors for mortality rates. I have seen dozens of cases who tried inappropriately or failed, an NIV trial – NIV meaning noninvasive ventilation. 

They failed the NIV trial, but doctors maintained the noninvasive ventilator. They doctors did not intubate them. But eventually, even after endotracheal intubation, after the initiation of mechanical ventilation, the patients still died. So, we can actually make a huge difference, at the later stage, by encouraging every physician to intubate their patients as soon as possible – as soon as they see their patients fail an NIV trial. There's one study, although not a large one, from my colleagues in Tongji hospital. They found that an aggressive approach for endotracheal intubation will significantly improve the patient outcome. 

I believe the paper has been submitted, but I have no idea whether it's accepted or not. Thanks. 

Xi Yanchun:

Ok, the last question, please. Okay. Right area second line, the lady, please. 

China Daily:

Thank you. Question from China Daily. It has been more than a month since medical workers from across China raced to Wuhan to help fight the virus – and we know that you are all part of that effort. So, my question is, what have those medical teams contributed in terms of treating COVID-19 patients in Hubei, and in Wuhan. Second, after weeks of intense work, what is on the top of your mind right now? What would you like to share with us the most? Thank you. 

Xi Yanchun:

May I suggest each of you say a few words for this question please? 

Du Bin:

Thanks. I'm not quite sure if I'm the right person to answer the first question, because I think the question is to the healthcare authorities rather than us. But anyway, I'll come directly to the second question. Although this is a chance for us, my colleagues and I, to share our experiences to the international community, I would say that the Chinese approach for the control of the epidemics may not be the only approach. 

We can see what has happened in Singapore and what has happened in Japan. I would say that my colleagues and I can learn from their experiences. Whenever you have a quite different situation, in terms of the number of cases and the community support system, you can adopt a quite different approach that achieves a similar success in controlling epidemics. 

So, it's also an opportunity for us to learn from each other – just like we said for the Chinese medicine and western medicine. So, the last sentence from me is that the beauty of the world lies in its diversity, but not identity. Thanks. 

Xi Yanchun:

Okay, Professor Yan, please. 

Yan Xiaowei:

I think it's my great pleasure to come to Wuhan as a doctor in the intensive care unit to save my patients. Yes, in the intensive care unit, I have had so many casualties – this kind of experience I will never forget in my life.

And also, I'm very glad to be here to share my experience with overseas friends and colleagues. Thank you very much.

Xi Yanchun:

Ok. Cao Wei, please.

Cao Wei:

I want to share some personal feelings. 17 years ago, when SARS came, I was still a medical student in college. At that time, I was the one to be protected. And this time, I was able to come here with my teachers and seniors to fight together for my people and my country. I'm very proud of that and I'm sure that's a common feeling of all the medical workers here in Wuhan – despite sacrificing a lot, personally, and being apart from our families for such a long time. But it deserves. 

Lastly, I want to express my deep thanks and show respect for all the nurses that have been working with us. They have taken the same responsibilities as us and, not like me, many of the nurses who have come to Wuhan are actually very young. Most of them were born in the 1990s with only remote memories of the SARS season. But when it came, they all stood up and came here. Without them we wouldn't have achieved so much, especially for these critically ill patients. So, thank you very much.

Xi Yanchun:

Okay, Dr. Wu, please.

Wu Dong:

Thanks for the question. Also, some personal feelings. During the last five weeks, I was totally devoted to caring for patients in the ICU. The only thing I feel sorry for is that I couldn't take care of my own family, as a father and as a husband. Five weeks ago when I left Beijing for here, my eight-year-old daughter asked me, "dad, why are you going to Wuhan?" To be honest, it was a question that I couldn't quite answer at that time. But last week I had a patient in the ICU. She was a 57-year-old woman and she was very sick. So, our plan was to intubate her and put her on mechanical ventilation. That seemed the only way to save her life.

Before incubation, she whispered several words to me in Wuhan dialect, so it was difficult for me to understand what she was talking about. But finally, I figured out what she said and it was, "Doc, I don't want to die. The end of this month is my daughter's wedding day." At that very moment, and deep in my heart, I saw that many of our patients are parents too. They love their own kids, the same as I do. It also reminds me of the novel by Gabriel García Márquez, "Love in the Time of Cholera." What I learned from the novel is that human beings are mortal, but love is not.

So why did I come to Wuhan? It's not only about professionalism or responsibility; it is also about love. I love my daughter, I love my patients, I love my country and I love humankind. As humankind, we are all in this together and we will get through this together. Thanks.

Xi Yanchun:

Thank you. I'm quite touched by what all these experts have just shared with us. I'd like to say that the COVID-19 outbreak is neither the first nor the last challenge confronting all mankind. 

The pandemic knows no borders. The only right thing for the world to do is to make concerted efforts. While combating the disease at home, China will work hand in hand with other countries and contribute our strength and wisdom to securing a final victory.

Today, the four experts from the PUMC hospital shared a lot of valuable experiences. When they came to Wuhan, they didn't know how long this would take and how many difficulties and challenges would be faced. But from what they just said, we know how important it is to have them with us when combating the virus. 

I'm sure people in Wuhan and in Hubei will remember all of them forever. And the Chinese people will be very proud of them – all the Chinese doctors and nurses. So lastly, I suggest we take a group photo together and give a thumbs-up to all the Chinese doctors and nurses. Well done. 

Thank you very much. That's the end of the briefing. Thank you. Bye bye.

.

Read in Chinese

Speaker:

Mao Shengyong, director general of the Department of Comprehensive Statistics and spokesperson of the National Bureau of Statistics

Chairperson: 

Hu Kaihong, spokesperson of the State Council Information Office

Date: 

March 16, 2020

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference organized by the State Council Information Office. We have invited Mr. Mao Shengyong, director general of the Department of Comprehensive Statistics and spokesperson of the National Bureau of Statistics, to brief you on China's economic performance in the first two months of this year. He will also be happy to answer your questions. Now I give the floor to Mr. Mao.

Mao Shengyong:

The Chinese economy withstood the impact of the COVID-19 epidemic in January and February. Under the strong leadership of the Communist Party of China (CPC) Central Committee with Xi Jinping at its core, governments at all levels and various departments coordinated to control and prevent the spread of COVID-19 while advancing economic and social development during the first two months of this year. We have already achieved some encouraging phased results. Thanks to promotional policies and measures, enterprises have accelerated resumption of work and production. Industries and social life are gradually returning to normal. The national economy is running smoothly, and fundamental livelihood has been effectively guaranteed. 

First, agricultural production has remained strong as spring plowing and farming preparations commence. 

The sown area of winter wheat nationwide reached 331 million mu (about 22 million hectares). The present seeding situation is stable, and the growth is generally good. As of the end of February, the proportion of first- and second-class seedlings in the main winter wheat production areas increased by nearly 3 percentage points compared with the same period of last year. The area of vegetable cultivation has expanded. Spring plowing preparation work has been deployed nationwide, and supply of agricultural materials such as seeds, fertilizers and pesticides has been guaranteed.

Second, industrial output decreased but production of important materials saw a constant increase. 

From January to February, the value added of industries above designated size fell by 13.5% year-on-year. In terms of different types of economic entities, the value added of state-holding enterprises fell by 7.9%, joint-stock enterprises dropped by 14.2%, foreign-invested and Hong Kong, Macao and Taiwan-invested enterprises fell by 21.4% and private enterprises fell by 20.2%. In terms of the three major categories of industries, the added value of the mining industry fell by 6.5%, the manufacturing industry dropped by 15.7%, and electricity, heating, gas and water production and supply industries fell by 7.1%. In terms of product output, production of medical and protective materials and daily necessities grew rapidly. Output of masks and distilled alcohol increased by 127.5% and 15.6%, respectively, while frozen meat and instant noodles increased by 13.5% and 11.4%, respectively. Growth of high-tech products remains promising. Output of smart watches, smart bracelets, semiconductor devices and integrated circuits increased by 119.7%, 45.1%, 31.4% and 8.5%, respectively. Production of basic raw materials was stable, and the output of cast iron, crude steel, flat glass and 10 non-ferrous metals increased by 3.1%, 3.1%, 2.3% and 2.2%, respectively. According to survey data on purchasing managers nationwide, as of February 25, the resumption rate of large and medium-sized manufacturing enterprises reached 85.6%, and production and operation activities continue resuming smoothly.

Third, the service industry dropped but a new emerging service industry maintained development momentum. 

From January to February, the national service industry production index decreased by 13.0% year-on-year. On major industries, the financial industry grew by 4.5%, the information transmission, software and information technology services industry increased by 3.8%, while other relevant industries declined to varying degrees. In February, the business activity index of the service industry was 30.1%, of which the business activity index of the financial industry was 50.1%, which continued to expand. The business activity indices of the telecommunications and internet software industries were 43.3% and 41.4%, respectively, higher than the average of all service industries respectively by 13.2 and 11.3 percentage points, which were significantly better than the overall performance of the service industry.

Fourth, market sales dropped but online retailing of daily necessities and physical commodities increased dramatically. 

From January to February, total retail sales of consumer goods exceeded 5.2 trillion yuan (US$743 billion), a year-on-year decrease of 20.5%. Location of business entities made a difference: Retail sales of consumer goods in urban areas hit nearly 4.49 trillion yuan (about US$634 billion), a year-on-year decrease of 20.7%, while retail sales of consumer goods in rural areas were 724.9 billion yuan (US$103.3 billion), a year-on-year decrease of 19%. Across consumption types, catering revenue was 419.4 billion yuan (US$59.7 billion), a year-on-year decrease of 43.1% and retail sales were nearly 4.8 trillion yuan (US$682.8 billion), a year-on-year decrease of 17.6%. Commodities used in daily life showed a trend of growth. Food commodities like grain and cooking oil, beverages and traditional Chinese and Western medicines increased by 9.7%, 3.1% and 0.2%, respectively. From January to February, China’s online retail sales surpassed 1.37 trillion yuan (US$195.3 billion), a year-on-year decrease of 3%. Among them, online retail sales of physical goods exceeded 1.12trillion yuan (about US$160 billion), a year-on-year increase of 3%, accounting for 21.5% of the total retail sales of consumer goods, an increase of 5% over the same period of last year.

Fifth, investment in fixed assets decreased, and investment in high-tech industries and social sectors fell below the average level.

From January to February, investment in fixed assets (excluding farmers) across the country exceeded 3.33 trillion yuan (US$474.7 billion), a year-on-year decrease of 24.5%. Across various sectors, infrastructure investment fell by 30.3%, manufacturing investment fell by 31.5% and real estate investment fell by 16.3%. The sales area of commercial housing nationwide was 84.75 million square meters, down by 39.9%. Sales of commercial housing totaled 820.3 billion yuan (US$116.4 billion), down by 35.9%. Investment in the primary industry fell by 25.6%, investment in the secondary industry fell by 28.2%, and investment in the tertiary industry fell by 23%. Private investment was nearly 1.9 trillion yuan (US$269.7 billion), a year-on-year decrease of 26.4%. Investment in high-tech industries decreased by 17.9%, lower than the average decrease rate of total investment by 6.6 percentage points, of which investment in high-tech manufacturing and high-tech service industries fell by 16.5% and 20.8%, respectively. Investment in inspection services and professional technical services increased by 26.1% and 4.3%, respectively. Investment in the social sector decreased by 20%, of which investment in the health sector decreased by 11.2%, lower than the average decrease rate of total investment by 13.3 percentage points.

Sixth, market prices remained basically stable while the Consumer Price Index (CPI) and the Producer Price Index (PPI) diverged.

In the first two months of this year, China’s CPI rose by 5.3% year-on-year. The prices of food, tobacco and alcohol increased by 15.6%, clothing increased by 0.5%, housing increased by 0.4%, daily necessities and services increased by 0.1%, transportation and communications decreased by 0.4%, education, culture and entertainment increased by 1.6%, and medical care increased by 2.2% while other supplies and services rose by 4.6%. Among food, tobacco and alcohol prices, grain prices rose by 0.6%, fresh vegetables rose by 13.8%, pork rose by 125.6%, and fresh fruit fell by 5.3% compared to the same period of last year. Taking out food and energy prices, the core CPI rose by 1.3%. The CPI saw a year-on-year increase of 5.4% and 5.2% in January and February, respectively, and rose by 1.4% and 0.8% month-on-month.

From January to February, the producer’s price index for manufactured products in China fell by 0.2% year-on-year. The figure increased by 0.1% year-on-year in January, unchanged from the previous month, but fell by 0.4% year-on-year in February and decreased by 0.5% month-on-month. From January to February, the purchasing prices for industrial producers nationwide fell by 0.4% year-on-year.

Seventh, the surveyed unemployment rate rose, but employment of major groups remained generally stable.

From January to February, 1.08 million new jobs were created in cities and towns across the country. In February, the national surveyed unemployment rate in cities and towns was 6.2%, and the surveyed unemployment rate in 31 major cities was 5.7%. The surveyed unemployment rate of prime working aged people between 25 and59 years old was 5.6%, 0.6 percentage points lower than the average level of cities and towns across the country. The unemployment rate for people aged 20 to 24 with a junior college degree or above decreased by 0.4 percentage points from January. The average weekly working hours of employees in enterprises was 40.2 hours, a decrease of 6.5 hours from January. 

Eighth, China began to see trade deficit, but its trade structure continued to improve. 

From January to February, the total value of imports and exports of goods exceeded 4.1 trillion yuan (US$587.4 billion), a year-on-year decrease of 9.6%. Exports were more than 2.04 trillion yuan (US$290.7 billion), down by 15.9%. Imports were more than 2.08 trillion yuan (US$296.8 billion), down by 2.4%. The trade deficit was 42.6 billion yuan (US$6.1 billion). China's trade structure continued to improve. The share of general trade in total imports and exports was 60.6%, an increase of 0.3 percentage points over the same period last year. The share of imports and exports by private enterprises in total imports and exports was 41.9%, an increase of 1.3 percentage points over the same period last year. China's trade with ASEAN and countries along the Belt and Road maintained a growth trend, with imports and exports increasing by 2.0% and 1.8%, respectively. For the first time, the proportion of imports and exports with countries along the Belt and Road accounted for more than 30% of all of China's foreign trade. From January to February, the export delivery value of industrial enterprises above designated size in China reached nearly 1.36 trillion yuan (US$193 billion), a year-on-year decrease of 19.1%.

The COVID-19 outbreak left a big impact on China's economy in the first two months of 2020, but generally, the impact is short-term, external and controllable. The spread of the virus in China has been basically contained, proving that the control and prevention work has been effective. Fundamental living standards can be guaranteed, society remains stable, and the long-term positive and upward trend of the Chinese economy remains unchanged. Next, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will firmly implement decisions and arrangements from the CPC Central Committee and the State Council including a coordinated response to COVID-19 and measures to ensure social and economic development. While continuing to advance the epidemic control and prevention work, we will constantly aid enterprises in resuming work and production, ensure orderly flow of people and materials, enhance organic alignment of production, supply and sales, and balance imports and exports. By strengthening the hedging force of macro-policies, we will get microeconomic entities back to full steam to reduce the damage caused by the epidemic as much as possible and recover normal social and economic order while boosting stable and healthy economic development. 

Hu Kaihong:

Thank you, Mr. Mao. We will now take questions. Please identify your news outlet before asking.

China Media Group:  

Major economic indicators point to a decline in January and February. However, the data you just released shows industrial, investment and consumer sectors all plunging beyond expectations. Why did you still say that China's national economy has withstood the shock of the COVID-19 epidemic? Thank you. 

Mao Shengyong: 

Thank you for your question. We just released our economic performance statistics from the January-February period. The actual performance of those indicators may not exactly match market expectations. Since the novel coronavirus outbreak, to protect the lives and health of the people, the Chinese people have made a concerted effort throughout the country to fight the epidemic under the strong leadership of the CPC Central Committee. Right now, epidemic prevention and control efforts have achieved important, hard-won phased results.

The statistics we released show that the epidemic has indeed made a major impact on China's economy. But in-depth analysis shows that the impact of the epidemic on China's economy will largely be short-term and external. It will not change any fundamentals such as the long-term positive trend and strong upward momentum of the Chinese economy. Essentially, the impact of the epidemic on the economy in the short term is generally controllable. The Chinese economy has withstood the shock of the COVID-19 outbreak during the first two months of the year. How can we reach this conclusion? I would like to explain from the following perspectives:

First, the volume of production demand remains huge, and China's advantages as an economy of super-large scale have not changed. In 2019, China's economic aggregate was close to 100 trillion yuan (US$14 trillion), with per capita GDP exceeding US$10,000. Its output of major industrial products has remained top in the world for several consecutive years. These achievements have provided China with strong material guarantees when responding to emergencies. From January to February this year, despite of the severe impact of the epidemic, the scale and volume of major production indicators remained huge. From January to February, the total output value of industrial enterprises above designated size in China reached 11.5 trillion yuan (US$1.6 trillion), total retail sales of consumer goods exceeded 5.2 trillion yuan (US$743 billion), and fixed-asset investments topped 3.3 trillion yuan (US$471 billion). The scale of China's economy has remained impressive. 

Second, as basic industry has managed to provide sufficient supplies, production of anti-epidemic materials has been guaranteed. The strong resilience of the Chinese economy remains unchanged. During the COVID-19 outbreak, productions in important industries vital to national wellbeing and the people's livelihood have never been suspended. Regular production and operations are maintained. Some industries even witnessed remarkable growth. In the first two months of this year, yield of ethylene increased by 5.6%, yields of both crude steel and cast iron increased by 3.1%, and output of 10 non-ferrous metals increased by 2.2%. During the COVID-19 outbreak, demand for epidemic control and prevention products such as masks, protective suits, and ethyl alcohol has soared. Through orderly adjustment, output of these products has increased and relevant production capacity has greatly expanded in a short period of time to satisfy the needs of epidemic prevention and control. Take masks for example: From January to February, statistics from industrial enterprises above designated size show that newly added mask production nearly tripled this year compared to the same period of last year. According to February 29 data from relevant departments, the average daily output of masks reached 116 million, indicating China's powerful supply capacity has adequately supported the supply of medical materials in demand. 

Third, supply of basic commodities and public utilities remains abundant. The overall balance between supply and demand has not changed. During the epidemic, the basic livelihood of China's 1.4 billion population has been effectively guaranteed. Total retail sales of consumer goods maintain relatively stable growth. For example, retail sales of meat, poultry and eggs increased by 37.8%, and retail sales of vegetables increased by 27.1%. Output of frozen meat and instant noodles increased by double digits. During the epidemic, the communications sector including the internet and providers of public utilities such as water and electricity, maintain smooth operations to meet the demand of residents. In general, the supply of goods including basic commodities could meet demand. Prices remain stable, and the country maintains overall economic and social stability. None of these achievements were easily won. 

Fourth, the internet economy is embracing promising development, and its rapid development momentum has not lost any steam. During the COVID-19 outbreak, the internet has played an essential role in coordinating epidemic prevention and control efforts, allocating supplies, delivering consumer goods, facilitating online education and online remote consultation and maintaining cultural and entertainment consumption. The internet-related industries have seen satisfying growth. From the perspective of market sales, from January to February, online retail sales of physical commodities increased by 3% year-on-year, accounting for 21.5% of the total retail sales of consumer goods, five percentage points higher than the same period of last year. Some high-tech products are still growing in such difficult times. The sales of electronic products such as 3D printers and smart watches have increased by more than 100%, and output of monocrystalline silicon and polysilicon has increased by about 45% and 35%, respectively. Despite the short-term impact of the epidemic on the economy, the momentum of accelerated development of new growth drivers has not changed.

Fifth, China's macro-control policy towards hedging economic risk and uncertainty is strong and effective. We are confident the China can achieve its goals for this year. Recently, the central government introduced a series of policies and measures to support epidemic prevention and control and resumption of work and production including supporting enterprises and boosting production. These policies are gradually taking effect. 

The next step of epidemic prevention and control will still be arduous, considering the spread of the coronavirus in some foreign countries has been quite fast. We must continue to consolidate the positive results of epidemic prevention and control and at the same time strengthen international cooperation in fighting the epidemic. In addition, we should push all links in the industrial chains to resume work and production in an orderly manner and accelerate restoration of regular production and life. We must also further strengthen macro policies to hedge the impact of the epidemic as well as external risk and uncertainty. We should promote stable and healthy economic operations and make solid efforts to win the three critical battles of avoiding major risk, performing targeted poverty alleviation and preventing pollution while striving to complete development goals for this year. Thank you.

Bloomberg News:

I have two questions. First, what is your forecast for the first-quarter GDP? Do you expect that being negative? Will that continue to the second quarter considering what is happening globally now, in the U.S., in Europe, and elsewhere? My second question is: Do you expect the jobless rate to continue rising? What will the government do to try to bring that down and decrease the unemployment in China? Thank you. 

Mao Shengyong: 

Thank you for your questions. First, regarding the first-quarter GDP, I just released the main economic indicators from January and February. Since statistics for the first two months have already come out, the situation in March will be decisive for quarterly data. After deployment of coordinated epidemic prevention and control measures coupled with economic and social development policies from China's central leadership, resumption of work and production has been speeding up since mid-to-late February. We expect a marked improvement in March. This is our prediction. 

Second, in the first quarter, economic output in March will account for about 40% of the total, with January and February accounted for the rest 60%. March has taken a larger proportion than either January or February in the economic aggregate. We believe that economic performance in March will be significantly better than that of January and February. This is most likely the case in the first quarter. As for the first-quarter GDP, we must wait until the next month to find out. We will know around the same time in the next month. 

As for the next step, our preliminary assessment is: Today, the effectiveness of domestic epidemic prevention and control efforts has become increasingly evident. More importantly, the resumption of work and production is accelerating, and regular production and everyday life are being gradually restored. Domestically, the impact of the epidemic on the economy will decline in the second quarter. By then, some economic activities that have suffered will gradually return to normal. Therefore, the economy in the second quarter is expected to bounce back significantly. In the second half of the year, especially with existing policies and a series of stronger hedging policies which will be introduced, the effects of such measures will become more evident. We believe that China's economy will realize more stable growth in the second half of the year, which will continue as the basic trend for the whole year.

To your second question about the unemployment rate, we did see rising jobless rates in January and February, especially February. The unemployment rate was 5.3% in January and 6.2% in February. We have attributed this mainly to the impact of the epidemic. Production and business activities of enterprises were affected, and demand for labor dropped. As a result, fewer people were employed. How is the jobless rate calculated? The numerator is the unemployed and the denominator is the unemployed plus the employed. If the number of the employed drops, the jobless rate goes up. This is what happened in February. Although the unemployment rate rose in February, we also saw the employment situation of some key groups remained relatively stable. For example, the jobless rate of prime working-age population between 25 and 59 years old was 5.6%, 0.6 percentage points lower than the average. The unemployment rate for people aged 20 to 24 with a junior college degree or above decreased by 0.4 percentage points from January. This is the basic employment situation in the first two months of this year.

Soon, gradual restoration of production and life will increase employment demand and relieve employment pressure. This is our prediction. Due to the resumption of work and production, the employment situation for enterprises is improving, and the demand for labor will continue to increase. A stable approach to gradual recovery of the economy, especially in the second half of the year, will alleviate employment pressure.

In terms of policy, employment is the foundation of public wellbeing and affects every household in this country. The CPC Central Committee and the State Council attach great importance to the employment issue. Employment has been highlighted in policy support of the "Six Stabilities" (which calls for work to stabilize employment, finance, foreign trade, foreign capital, investment and expectations). In terms of macro policy, China has adopted proactive fiscal policy, prudent monetary policy and employment-first policy over the past two years. The country attaches great importance to employment, thus employment policy goes hand-in-hand with fiscal and monetary policies. In general, the employment situation in 2020 has been severe. Overall employment pressure and structural employment problems still exist. However, the central government will continue to increase the hedging effect of macroeconomic policies and strive to help enterprises, especially small and medium-sized enterprises which rely heavily on labor. If we can stabilize enterprises and economic performance, we can stabilize employment. We will strengthen employment-first measures such as improving the training of new employees, transferred employees and migrant workers, making better use of employment funds, and doing more to help and support employment for some key groups like university graduates and migrant workers. Such measures will promote more flexible employment. 

In a word, intensified policies will be introduced to realize overall employment stability this year. Thank you.

CNBC: 

My question is about employment. The import and export volumes for January and February dropped considerably. What has been the direct influence on the labor market and unemployment rate? Thank you. 

Mao Shengyong: 

Thank you for another question about employment. First, the epidemic has certainly influenced enterprises, especially small and medium-sized enterprises which have suffered greater blows. Furthermore, the number of college and university graduates this year will reach 8.74 million, a record high, which would exert pressure on the labor market. China's epidemic prevention and control measures have seen remarkable results. However, the situation is still severe outside the country. The world economy is facing emerging challenges including a volatile financial market and commodities prices. The growth rates of the world economy and trade are expected to drop to a certain degree, which will impact China's economy as well. Considering such circumstances, I have to say that such pressure on employment is remarkable. 

Second, we should recognize the resilience of China's economy. Riding good momentum from epidemic prevention and control efforts, enterprises are starting to resume operations and production, so recovery of the economy will accelerate in the second quarter or second half of the year. At the same time, stronger hedging macro-policies will be introduced. Stronger policies to promote employment will also come into force. Employment will certainly improve in the second half of the year, and the surveyed unemployment rate will decline. Thank you. 

The Cover:

I have a question about pricing. We noticed that the growth rates of CPI in January and February remained at around 5%. The People's Bank of China recently cut the requirement reserve ratio for RMB deposits again and subsequent monetary policy will likely be looser. Will such measures lead to higher prices? Thank you. 

Mao Shengyong: 

First, to the questions about the prices of consumer goods, the growth rates of CPI in January and February did stay above 5%, which is relatively high. The year-on-year growth rate of CPI in February, however, was 5.2%, 0.2 percentage points lower than that of January. And the growth rate compared to the previous month was 0.8%, 0.6 percentage points lower than the January level. In general, there are three major reasons behind the high CPI growth rate over the first two months of the year. First, food. The high growth rate of CPI at present has mainly been caused by a rise in food prices, especially the price of pork, which recorded a year-on-year growth rate of 135.2%. Pork prices contributed 3.2 percentage points to the CPI growth rate. That means that 3.2 of the 5.2 percentage points were from pork. The growth of food prices has remained high. Second, the epidemic has taken a toll. Prevention and control measures by concerned parties have raised cargo transportation costs. Third, the tail-raising factor. Volatile prices in last year have had major influence on the first two months of 2020. It should be noted that the growth rate in February which exceeded 5% could have easily been only 1% without major contributions from food and energy, 0.5 percentage points lower than that of the previous month, maintaining a relatively low level. This shows that although the CPI is high, it is mostly caused by structural factors. 

Second, it is doubtful that the CPI would grow even faster in the following period. Why? The three factors I just mention: The first is food. China achieved record high grain production last year. Agricultural production still has pretty strong momentum. Hog inventory and those available for slaughter have both increased year-on-year. The price of hog has gradually declined from a peak. Compared to mid-February, the price of hog dropped by 4.6% in late February, and the figure further decreased by 1.3% in early March. So, pork price shows a general trend of tumbling from recent highs. The second factor is the epidemic. Following effective prevention and control efforts, logistics and operation of enterprises are recovering quickly. Supply of industrial goods will increase and circulation of materials will be further smoothened, which will help stabilize prices. Third is the tail-raising factor. From the big picture of the whole year, the tail-raising factor of prices will diminish, especially in the second half of the year. There is no evidence pointing to a continuous surge in the CPI. The growth rate of CPI will steadily decline, especially in the second half of the year. 

Third, the monetary policy. In the context of the epidemic and complicated and grave situation in China and around the world, macro policies should be stronger and prudent monetary policies should be more flexible and moderate. We have carried out targeted cuts of the requirement reserve ratio, directed lowering of interest rates and increased refinancing and rediscount. The core purpose of those measures is to support enterprises through maintaining rational liquidity and encouraging decrease in interest rates or quoted interest rates. So instead of strong stimulus policies that would have economy-wide impact, we opted for targeted aid, which will not drive price growth dramatically from the perspective of monetary policy. 

Although recent price growth rates have been remarkable, the growth rate of the CPI is highly likely to taper off in the future. Thank you. 

Market News International: 

The epidemic spiked in February. The economy in January should have been mostly normal. Can you estimate the total impact on February? Will production and consumption fully recover by April? With the "two sessions" postponed, will this influence the formulation and implementation of economic development targets for this year, especially the second half of the year? Thank you. 

Mao Shengyong: 

Thank you for your questions. To offset the influence of the Spring Festival holiday, the major indicators of January and February are always calculated together because the Chinese New Year can fall in either January or February, which brings some volatility. This year was not the first time the statistics were combined. It has always been this way. The economy was pretty good before January 23. It was operating normally. Then it was influenced by epidemic prevention and control. So, the economy was mostly impacted in February. Since mid-February, however, the central government has been coordinating epidemic prevention and control with economic and social development. And the disruption has been abated. Enterprises are resuming production gradually and life is creeping back to normal. This is how things developed across January and February. 

Generally, the disruption in February was bigger than in the previous month. I think that life and production have accelerated towards full recovery. Different departments have different angles and samples of statistics in terms of the resumption of operations of enterprises above designated size. The National Bureau of Statistics conducted three quick surveys from February 12 to 29. By February 29, the ratio of enterprises above designated size, including major industrial and construction enterprises, that resumed production increased by 19.8 percentage points compared to the previous week. Recently, statistics released by relevant departments showed that 95% of enterprises above designated size in regions outside Hubei Province have resumed production. We believe that great progress has been made in terms of resumption of work.

Nevertheless, the epidemic is still spreading elsewhere in the world, which will probably cause uncertainty for us. For this reason, we should continue epidemic prevention and control in earnest. Meanwhile, we should promote resumption of production and a return to normal life. We will strengthen international cooperation on epidemic prevention and control and play a key role as a responsible major country in helping other countries combat the epidemic. After March, especially in the second quarter, production and daily life will largely return to normal. 

As for the targets set at the "two sessions," that is normally where major targets for the economic and social development for the year are determined. Those targets reflect the performance of every sector in economic development. But they should be formulated according to the actual situation. Facing the disruptions caused by the outbreak, strong hedging policies will be introduced to diminish the impact of the epidemic and keep things on track to meet the targets set for the year, especially poverty alleviation. Thank you. 

Phoenix TV:

Director General Mao, you just mentioned that we should still strive to achieve annual development goals and tasks. What are the specific goals and tasks? Were you referring to the targets of doubling 2010 GDP and per capita income by 2020? Do you think that considering the current situation, it would be advisable to reduce the economic growth target for this year? Thank you.

Mao Shengyong:

Building a moderately prosperous society in all respects was the first of the Two Centenary Goals set at the 18th CPC National Congress. It remains a solemn commitment made by our Party and must be realized. However, the concept of a moderately prosperous society in all respects has profound connotations. According to my personal understanding, the most important thing now is still resolutely winning the battle against poverty. General Secretary Xi Jinping recently made an important speech which we should earnestly study. He mentioned ensuring that the current 5.51 million poor people are lifted out of poverty according to existing standards and that poverty relief is a quality goal that should satisfy public demand and withstand tests of history and practice. Second, it is now very important to continue to consolidate gains in epidemic prevention and control. We should accelerate the resumption of production and living order and strive to return economic operation to a track of healthy development. All policies, including fiscal, monetary and employment policies, should serve these development goals.

As for annual development goals, we still need to reference the Report on the Work of the Government at the "two sessions." Once the goals are set, all people of the country will strive to achieve them. Thank you.

China Media Group:

We noticed that investment in fixed assets is constantly decreasing and that the sales area and volume of commercial housing are also declining. It was recently announced that housing price growth rates in 70 large and medium-sized cities in February are steadily falling. What is your opinion of the drops? Will the housing market stay cold? How will this affect the overall national economy? Thank you.

Mao Shengyong:

Thank you for your question. On real estate, I think the policy is very clear. First, the prohibitions on real estate speculation have not changed. In recent years, we have constantly strengthened and improved real estate regulation and control policies, implemented differentiated policies for various cities and enhanced key responsibilities of cities. In past few years, the real estate market has remained generally stable, especially in terms of stabilization of land prices, expectations and housing prices. 

Second, it is still clear that development policy on real estate should promote high-quality development. It is not the realm for short-term stimulus policy.

Third, regarding investment, China's perspective of areas and space for investment is quite large and includes manufacturing, infrastructure and other areas. Next, we should continue to increase policy support for investment. For example, recently, 23 departments issued suggestions and measures to improve consumption quality and expand consumption capacity. We also need to increase the effectiveness of investment which includes investment in relatively weak areas, promotion of industrial upgrading and strengthening areas of weakness in public service including the emergency response system. The areas and space for investment are huge. Our next step is not only to strengthen effective investment, but also to improve consumption quality and expand consumption capacity. We should make better efforts at the intersection of promoting consumption and expanding investment to maintain the overall stability of our economic operations. Thank you.

South China Morning Post:

Recently, new infrastructure such as 5G and the industrial internet has become a hotly discussed topic, which is expected to become the driving force for economic growth in the rest of the year. Does the National Bureau of Statistics have a comment on this? Is there a forecast for the scale of investment in new infrastructure? Is it able to keep China's economy in a reasonable range? Thank you.

Mao Shengyong:

Thank you. We have seen many recent online discussions on this matter. The core of this issue is the basic orientation of next-step macro policy. To support epidemic prevention and control, including supporting affected enterprises, we recently introduced a series of policies and measures that have already achieved favorable outcomes. To better hedge against the impact of the epidemic including external risks and challenges, we will increase the adjustment of macro policies in the next step. For active fiscal policy, we should seek greater effectiveness. For prudent monetary policy, we should be more flexible and appropriate. We should further strengthen the employment priority policy, which is a basic policy orientation. From the perspective of fiscal policy, we need to further reduce the burdens on enterprises and promote tax cuts and fee reductions. Over the past two years, we have made great efforts to reduce taxes and fees. This year, we will continue these efforts including the reduction of fees, reduction of energy and gas costs and other areas. The monetary policy has the same goal. To provide targeted assistances for enterprises, we should maintain reasonable and sufficient liquidity and strive to reduce loan costs.

Another perspective is domestic and external demand. As of domestic demand, we need to expand consumer demand and investment demand. The two "wheels" should align with each other. There is still much space for investment, including many weak areas that require industrial upgrading and technological progress and some inadequate areas in public service. All of these need greater efforts in the future. We should work hard at the intersection of expanding consumption and investment to achieve better results. If we can better leverage private investment, the results will be better. Therefore, we believe that expansion of investment and consumption should happen simultaneously.

Second is external demand. Although domestic demand is our central driving force, we should actively consolidate external demand. We should further strengthen the reform and opening up, actively consolidate foreign investment and trade, stabilize the foundation of foreign investment and trade and stimulate the vitality, dynamic and potential of microeconomic entities. In future reform and opening up, we need to keep moving forward with greater momentum.

In a nutshell, we must pay attention to both domestic and external demand and reinforce the foundation of external demand. Domestic demand is the key driving force, but neither investment nor consumption can be tailored exclusively to domestic demand. The fields and space of investment will be more focused on eliminating weaknesses and strengthening potential, promoting industrial upgrading and enhancing the level and capacity of supply. Thank you.

Hu Kaihong:

Due to limited time, we can take two more questions. 

Reuters:

Will the noticeable growth in unemployment rate in February exert a far-reaching impact on Chinese incomes and future consumption? The national debt-to-GDP ratio is also getting a lot of attention—will it surpass 3%? Thank you!

Mao Shengyong:

To the first question about the unemployment rate, in February, China's unemployment rate did increase. This was mainly because enterprises' demand for labor obviously decreased due to the impact of the epidemic, resulting in a drop in employment. However, this situation won't last long. With more enterprises resuming production and operations, demand for labor will grow and employment will increase, causing the overall unemployment rate to drop. It is predictable that the rise in unemployment in January and February will have a negative impact on residents' income growth in the first quarter of this year. From the second quarter, with production and daily life returning to normal and enterprises creating more jobs, especially when economic recovery reaches robust levels by the second half of the year, the income growth rate is expected to gradually improve. 

To the second question about the fiscal deficit, the Chinese government's overall debt level remains relatively low at present. In terms of policies to be taken, we need to further reduce taxes and fees to relieve the burdens on enterprises and help them overcome difficulties in this time of crisis while at the same time implementing a proactive fiscal policy composed of more active, effective measures. In general, the overall national debt of China remains relatively low. Some assets arising from debts are even profitable. In this sense, we still have plenty of room to appropriately raise our budget deficit ratio. Thank you!

Ta Kung Pao & Wen Wei Po:

How many percentage points of GDP growth by the end of this year does China need to achieve its 2020 targets on economic development and its goal of doubling its 2010 GDP? One more question: You just mentioned that China would expand domestic demand while consolidating external demand, but do you think global proliferation of the epidemic will affect China's overall external demand? 

Mao Shengyong:

As of your first question on the goal of doubling China’s GDP from 2010, I think the core of the question is China's economic growth this year. Indeed, the economy is facing some headwinds since the year started: On the one hand, the epidemic has left a clear negative impact on the economy in the first quarter, especially January and February, and on the other hand, the external environment is seeing new changes like sharp fluctuations in the financial market and commodity prices, resulting in gloomy predictions that global economic growth may slow. However, there are some encouraging factors emerging out there: First, the results of epidemic prevention and control in China are going to leave the country stronger. Second, progress has been continuously made in coordinating epidemic control and socioeconomic development and helping enterprises resume production and operations. Third, after the results of epidemic prevention and control are further consolidated, the endogenous dynamic of the Chinese economy will be constantly unleashed, and economic activities that were temporarily contained will reactivate. In the next stage, if work on epidemic prevention and control proceeds well, China will land on a good foundation for strong economic growth in the rest of the year. Especially after more robust hedging policies are implemented, the effects will continue emerging in the second half of this year. I am confident that China will maintain stable, healthy economic development this year. 

To your second question on the epidemic's impact on China's foreign trade: So far, the epidemic has been basically contained in China, but it still maintains momentum of rapid spread outside of China. Certainly, the pandemic situation will impact China's foreign trade. Under this circumstance, two things are extremely important: First, we must continue advancing epidemic prevention and control instead of just calling it a day. In addition to stepping up epidemic prevention and control domestically, we also need to strengthen international cooperation on prevention and control of the epidemic. China has gained valuable experience on this very task and should play a more prominent role as a responsible major country. Second, the global economy is facing some difficulties. Those irrational trade rules and barriers should be removed and abolished to enable the world economy to more effectively offset the impact of the epidemic and bring global trade back to normal. Thank you!

Hu Kaihong:

The press conference is hereby concluded. Thank you, Mr. Mao. Thank you all.

.

Read in Chinese

Speakers:

Xin Guobin, vice minister of the Ministry of Industry and Information Technology 

Yang Liping, chief supervision officer of the China Banking and Insurance Regulatory Commission

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

March 13, 2020

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference held by the Joint Prevention and Control Mechanism of the State Council. Today we have invited Mr. Xin Guobin, vice minister of the Ministry of Industry and Information Technology, and Ms. Yang Liping, chief supervision officer of the China Banking and Insurance Regulatory Commission, who will brief you about the work to support the coordinated and orderly resumption of industrial chain operations. They will also answer your questions. First, let's hear from Mr. Xin Guobin.

Xin Guobin:

Thank you. Ladies and gentlemen, friends from the media, good morning. Since the start of the COVID-19 outbreak, the CPC Central Committee and the State Council have been assessing the situation and leading the nation to adopt unconventional measures as part of the "people's war" against the virus. As the epidemic has been effectively controlled in China, relevant adjustments have also been made promptly by the CPC Central Committee and the State Council, so as to coordinate the prevention and control efforts with continued social and economic development, and smoothly restore order in the social and economic sectors with the categorized management strategy. The coordinated and orderly resumption of industrial chain operations is of crucial importance to maintain the steady economic and social development. General Secretary Xi Jinping has stressed many times that industrial chains are closely linked in their development, and the absence of one link may hinder the operation of businesses at upstream and downstream. It is important to adhere to the principle of coordinated development, advocate the building of an integrated national market, and further promote the coordinated work resumption of small, medium and large-sized enterprises both upstream and downstream to ensure smooth resumption of production, supply, and sales. Meanwhile, the overall economic performance of these companies should be improved as the work and production resume. On March 10, Premier Li Keqiang chaired an executive meeting of the State Council, issuing instructions to further ensure the smooth running of industrial and capital chains, and promote the coordinated resumption of work and production in all sectors. All of these provide guidance and fundamental principles for companies to resume work and production.

The Ministry of Industry and Information Technology (MIIT) has been fully implementing the decisions and deployments of the CPC Central Committee and the State Council. We have adopted a holistic approach to provide guidance and strengthen supervision in our organizing efforts. We have also established clear priorities and focused on key tasks, so as to advance the coordinated and orderly resumption of industrial chain operations. On Feb. 13, the MIIT set up a leading group on the resumption of work and production. We also introduced 20 separate policies and measures supporting resumption of productive operations in small- and medium-sized enterprises (SMEs), hosted two video conferences for companies of industrial and communication sectors to share experience on this topic, and published guidelines on orderly resumption of work and productive activities in the manufacturing and communication industries. In addition, we have sent liaison officers to the industry and information technology departments in seven major industrial provinces, in order to promote the implementation of policies and solve the difficulties and specific issues put forward by companies.

Under the firm leadership of the CPC Central Committee and the State Council, and with the joint efforts and close cooperation among various sectors in different regions, the resumption of work and production has shown a positive trend with orderly progress. The average rate of work resumption among industrial enterprises above designated size outside Hubei province has exceeded 95%. On average, about 80% of staff in those enterprises have returned to work. About 60% of SMEs have resumed work and production. Nevertheless, there are still problems such as the logistical and transport difficulties, a lack of capital flow for SMEs, shortage of epidemic prevention materials, low efficiency throughout the industrial chains, as well as inconsistency of work resumption between upstream and downstream enterprises. At the same time, the spread of the virus around the world has also brought great uncertainty to the resumption of work in China.

With this in mind, the MIIT will step up efforts accordingly so as to adopt a problem-oriented strategy and make preparations for the most difficult scenarios. Based on the idea of coordinated development among enterprises of different sizes both in China and abroad, and with the joint efforts from central and local governments, the MIIT will work precisely to promote the coordinated and orderly resumption of industrial chain operations, sparing no efforts to realize an orderly flow of personnel, capital, and materials; the proper connection among production, supply, and sales, as well as facilitate the domestic and foreign trade.

First, we focused on such areas as epidemic prevention supplies, daily necessities, public utilities, spring ploughing, foreign trade and high-tech industries. We also compiled a list of large-scale leading enterprises and core supporting enterprises into batches, and encouraged leading enterprises to spur on the development of supporting enterprises.

Second, we focused on smoothing supply chains and industrial chains, clearing logistics and transportation blockages, and alleviating the problem of personnel movement, as well as the transportation of raw materials and products.

Third, we gave full play to the coordination mechanism of the State Council's leading group office on the promotion of SME development, and pushed forward the introduction of monetary, taxation, financial, innovation, social security, employment and other support policies to help SMEs overcome difficulties.

Fourth, in accordance with the requirement that "provincial-level governments assume overall responsibility," we promoted the work of provincial-level joint prevention and control mechanisms, classifying counties into three levels, namely: low, medium and high risk. Then we clearly established the situation and carried out policies precisely. 

Fifth, we focused on enhancing the risk-prevention capabilities of foreign trade companies and strengthening such key industrial chains as automobiles, medicine and electronics to improve the stability of the global industrial chain and supply chain.

Next, the MIIT will implement the spirit of the State Council's executive meeting on March 10, focus on the core industrial chains, enhance overall coordination, key links and policy implementation, boost growth momentum, and ensure the industrial chain resumes production in a solid and orderly manner. We will reduce damages and losses caused by the epidemic as much as possible, and endeavor to keep the industrial economy running within a reasonable range.

That's it for my introduction. Thank you.

Hu Kaihong:

Thank you, Mr. Xin. Next, Ms. Yang Liping, please make your introduction.

Yang Liping:

Thank you. Ladies and gentlemen, friends from the media, good morning. Since the COVID-19 outbreak, the China Banking and Insurance Regulatory Commission (CBIRC) has thoroughly studied and implemented the important instructions made by General Secretary Xi Jinping. In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, we have issued nine documents, either by ourselves or jointly with other departments, to provide financial services for the epidemic prevention and control work and for economic and social development.

First, we have strengthened credit support in key areas. In the first two months of this year, RMB loans from financial institutions increased by 4.2 trillion yuan (US$0.6 trillion). Currently, the credit support provided by banking financial institutions to fight the epidemic has exceeded 1.4 trillion yuan. We have also further increased financial support for private companies, and micro and small enterprises, as well as credit availability for manufacturing, spring farming and other fields.

Second, we have supported banks to implement temporary deferred debt-and-interest payment arrangements for enterprises in difficulty affected by the epidemic. We have asked banking financial institutions to refrain from seeking early repayment of loans, delaying loans, or stopping loans for micro, small and medium-sized enterprises (MSMEs, including entrepreneurs of micro and small enterprises and self-employed business owners) that have been affected by the epidemic and are now temporarily encountering difficulties. In accordance with the principles of marketization and rule of law, a temporary delay in the repayment of principal and interest has been implemented on loans due since Jan. 25. For personal business loans, including those to truck drivers, taxi drivers and other special groups, as they lost business during the epidemic, they have also had difficulties repaying the loans used to purchase vehicles. The individual business loans for these groups can refer to the policy for self-employed business owners, so that they can also enjoy the policy. We will make flexible adjustments to such personal loan repayment arrangements. 

What I want to explain here is that the second point is regarding stock, while the first point, you may have noticed, is regarding increments. The second point is about existing loans that have already been made but cannot be repaid on time due to the epidemic. As such, the banks have made temporary repayment arrangements for the principal and interest. I would especially like to note that temporary repayment arrangements are not automatic extensions, but require an application from the lender, who is willing to extend it, and also the application needs to be reviewed by the bank.

Third, we will actively encourage insurance institutions to help enterprises overcome any difficulties they may encounter. By way of reducing fees, duly delaying payment of premiums, insurers are encouraged to bolster their support for all kinds of enterprises in terms of property, liability, export credit insurance etc. Premiums for vehicles, ships, and planes whose operation is suspended due to the epidemic will be appropriately reduced. When risks can be managed, we encourage life insurance companies to moderately extend the term of policy loans and increase their amount to help customers ease short-term funding pressure. For owners of small business or self-employed business who bought life insurance, they can pledge their policies. In the past, the pledge basically lasted for six months and the pledge rate was about 80%. During the epidemic prevention and control period, the policy loan period can be appropriately extended, depending on individual situations.

Yang Liping:

Recently, in accordance with the requirements of the 85th Executive Meeting of the State Council, we undertook timely research and implemented the key roles of the financial sector to support the coordinated resumption of industrial chain operations.

First, we will strengthen the support for crucial enterprises in any industry chain. We will guide banking institutions to actively cooperate with key companies of the industry chain, enhance support for liquidity loans, and give reasonable lines of credit. After the key enterprises gain finance via credit, bonds, etc., we encourage them to pay cash to upstream and downstream enterprises in the way of prepayment, so as to reduce the pressure on SMEs in terms of their cash flow and financing costs.

Second, we will optimize the financial services of upstream and downstream enterprises in industrial chains. We will guide banking institutions to pay attention to needs of upstream and downstream enterprises in any industrial chain when they resume work and production. Banks should support enterprises to finance by means of accounts receivable, warehouse receipts and inventory pledges. At the same time, we will promote the work of banks in appropriately reducing the proportion of acceptance bills for creditworthy enterprises. These measures will also help to increase the cash flow of enterprises and enhance their liquidity.

Third, we will strengthen the coordinated development of the global industrial chain. We will promote banks to play their role in stabilizing foreign trade and ensure resources allocation in regard to trade, financing and credit. The incentive mechanism will be improved and more foreign trade loan will be granted. We will ensure that relevant policies will be implemented properly, including deferring repayment of the principal and payment of interest on loans. For promising SMEs affected by the epidemic, the repayment period can be extended. It is known that, according to the policy, interest payments can be deferred to June 30; however, for heavily-hit enterprises that need a longer time to recover, they can negotiate with the banks about further deferring paying principal and interest, especially the former promising SMEs severely affected by the epidemic may extend their repayment beyond June 30, after negotiating with their bank. There will be case-by-case negotiation. We will support commercial insurance companies to develop short-term export credit insurance business and reduce the rates.

Fourth, we will use financial technology to optimize the supply chain financing services. We will encourage qualified banking institutions to develop supply chain business systems. By connecting with crucial enterprises and government departments, combining online and offline methods, they can provide customers involved in a chain with more convenient and efficient supply chain financing services. We will encourage policy banks and commercial banks to strengthen business cooperation with private banks mainly relying on the internet to operate to provide targeted financing services for SMEs and improve the availability for those resuming work and production to apply for loans. Private banks that rely mainly on the internet have access to huge amount of big data but they don't have enough branches, therefore, their sources of funds, especially deposit funds, are not as large as traditional commercial banks. Thus, we encourage policy banks and commercial banks to lend them money, give them funds, and, at the same time, use their big data, because the private banks have a good understanding of their customers that are mainly SMEs, as well as self-employed business owners. In this way, we can reach out and give targeted support to these businesses.

Looking forward, the CBIRC will step up financial support for epidemic prevention and control as well as economic and social development in accordance with the decisions and plans issued by the CPC Central Committee and the State Council. We will intensify efforts to make financial sector better serve the real economy and urge banking and insurance institutions to fully implement relevant financial policies and measures. Thank you.

Hu Kaihong:

Thank you, Ms. Yang. We are now open to questions. Please identify your news outlet before asking questions.

CCTV: 

I have two questions for the speakers. First, what difficulties are there in speeding up coordinated work resumption within the various industrial chains? What specific measures have been or will be introduced to address them? Second, on the part of financial sector, what supportive policies will help open up industrial chains and facilitate cash flow? Thank you.

Xin Guobin:

Thank you for your questions. On Feb. 3, General Secretary Xi Jinping called for efforts to coordinate epidemic prevention and control with economic and social development, and ensure stable performance in six key areas (namely, stability in employment, finance, foreign trade, foreign investment, domestic investment, and market expectations) at a meeting of the Standing Committee of the Political Bureau of the CPC Central Committee. Since then, local authorities and relevant departments have acted to promote the resumption of work and productive operations. Thanks to their concerted efforts, positive progress has been achieved. However, when resuming operation, enterprises still face a series of difficulties and problems, which we believe, involve the following five aspects.

First, there are "pain points" in personnel movement. Due to varying epidemic situation as well as prevention and control levels in different regions, some enterprises are still suffering from a labor shortage, with staff members holding key posts stranded in hard-hit regions. For example, some technical personnel from Hubei province take the job of debugging the equipment for the production of key epidemic control supplies such as protective suits at factories in Guangdong. Large demand of such equipment in Guangdong has added new urgency of those technical personnel, most of whom from Xiantao in Hubei, to return to their work. However, the lockdown of Xiantao has left them no way out, affecting the debugging work of the equipment manufacturers to some extent.

Second, there are logistical obstructions. The "last mile" problem of transportation has not been entirely resolved. The regions hard-hit by the outbreak are still subject to restrictions on logistics, making resumption of production difficult for some enterprises occupying crucial positions in the industrial chains.

Third, there are breakpoints in the cash flow of small and medium-sized enterprises (SMEs). Various supportive measures have eased the financing strain on SMEs, but some enterprises in certain regions have been complaining that the measures are not readily available due to failure in implementation.

Fourth, "sticking points" remain in the supply of raw materials. Some enterprises are facing a lack of raw materials, as some important raw material enterprises have yet to resume operation. With modernized production and management systems, many enterprises rarely stockpile raw materials so as to reduce their costs, thus leading to the shortages observed during the viral outbreak.

Fifth, there is difficulty in offering sufficient epidemic control supplies. Despite a great increase in output, the supply gap still persists as a result of huge demand created by the resumption of work and production. For example, enterprises are facing a shortfall of facial masks and disinfection products when resuming operation.

Regarding those problems, the authorities concerned have introduced a series of policies and measures playing an effective role in reducing the difficulties challenging the enterprises in resuming work and production. However, the implementation of those policies should still be reinforced. 

In the next phase, the Ministry of Industry and Information Technology (MIIT) will step up efforts to better communicate and coordinate with other departments to address difficulties and concrete problems. A number of tasks will be highlighted as follows:

First, the essential industrial chains will resume operation in what we expected to be an orderly fashion. Regarding the requirement issued at the Executive Meeting of the State Council, MIIT will join hands with other authorities and take a lead in setting up a team designated to address cross-departmental and cross-regional problems affecting smooth resumption of work in key industries. Because different departments are in charge of different production factors and resources, the team needs to remove obstacles and solve concrete problems reflected by the industries concerned. Meanwhile, including officials from fiscal, financial and transportation sectors, the team is supposed to target problems concerning logistics, migrant population movements and capital flows, to name just a few, ensuring the hammer really hits the nail. We will give full play to the driving force of leading enterprises and make a list of them and their key partners, with their major concerns to be addressed by the team. That is how the production and work of upstream and downstream industries combined will continue to resume operations, and how the industrial ecology is further remedied to ensure stable supply chains to meet demand from both home and abroad.

Second, the difficulties facing micro, small and medium-sized enterprises should be much alleviated. The ubiquitous SMEs, indispensable to the industrial system, are a major part in various industrial chains. The MIIT will give full play to the coordinated mechanism of the State Council's Leading Group Office for Stimulating the Development of SMEs with the implementation of preferential financial, fiscal and tax policies devised for those enterprises. At the same time, State-owned big enterprises and governments at all levels should pay off debts owed to private firms and SMEs and prevent debts from snowballing during the epidemic period. We will continue to explore more policies to suspend the charges considered legitimate at ordinary times but inappropriate in this critical period in an attempt to further reduce costs of SMEs.

Third, the efforts to stimulate the resumption of normal operations in the industrial chains will be strengthened. The MIIT will team up with other departments to stimulate the expansion of domestic demand, foster new-type consumption and help secure sales of common industries, like automobile manufacturing. We will work to boost emerging industries and new business models, such as, application of technology scenarios supported by 5G, remote medical treatment and online education and online office. At the same time, the ministry will step up efforts to accelerate the constructions of major industrial and telecommunication projects, including, infrastructure built for the 5G network, the Internet of Things, big data, artificial intelligence and smart cities. The projects under construction will be encouraged to resume normal operations and reach target outputs as soon as possible. We will continue to follow a number of major projects and programs, especially those with substantial foreign investments to be launched to boost consumption demands for raw materials.

I will end my briefing here, thank you.

Yang Liping:

Thank you for the question about how to open up capital flows on the industrial chain. When Mr. Xin introduced the situation just now, I noticed that there are two existing issues and difficulties mentioned in the introduction. These are the "breakpoint" in the cash flow, as well as the financing difficulties faced by SMEs affected by the epidemic. Now that production is resuming, the progress of each industry and enterprise will be different. Industrial chains are interdependent, so if one link is affected or blocked, companies that lie upstream and downstream on the industrial chain may not run smoothly. The resumption of production in the industrial chain requires financial support, so there needs to be a stable flow of funds. Therefore we must identify the "blocking points" which disrupt the stable flow of funds. We think the "blocking points" of capital flow lie in two main areas. First, core enterprises occupy the funds of upstream and downstream SMEs. Earlier, Mr. Xin mentioned this issue, in which he addressed the appropriation of funds. Second, it is difficult for SMEs to raise funds, and Mr. Xin also mentioned that just now.

In view of these two "blocking points", the Banking and Insurance Regulatory Commission is ready to step up its efforts in two main areas.

The first aspect is to stabilize core enterprises that are critical to their relevant industrial chains. To stabilize the chain, we must first stabilize the head. Core enterprise affected by the epidemic may be encountering financial difficulties. Therefore, we encourage banks to increase their liquidity support, including credit limit increases, to help stabilize their production and operation.

Second, we hope we that core enterprise can help upstream and downstream micro, small and medium-sized enterprises. We will do this by increasing credit, loans, or helping the core enterprises issuing bonds, which will bring them more funds. After these businesses have funds, they can pay upstream supply companies that have given them goods. We will support businesses to get the funds in cash or in real-time payments, and not by payment notices, or deferred payments. Once core enterprises have credit or bond funds, we want them to transfer the money to upstream enterprises in real time, so the upstream enterprises will also have the funds to stock. In cases in which the upstream supplier has not delivered the goods, but has received an order, we also encourage core enterprise to advance payments to the upstream supplier, so the upstream supplier can better prepare the goods. This is how core enterprises can help upstream and downstream small and medium-sized enterprises, reducing the amount of capital stuck in the core enterprises. 

As for the downstream buyers, in practice, some core enterprises use their strong position in the industrial chain to demand a pay before shipment policy. They delay the payment to upstream supplies, and collect the money from downstream distributors, and tie up a lot of money. The downstream buyer's advance payment is actually a 100 percent prepayment. In this case, we will also grant credit to the core enterprise, so that the core enterprise has enough money to produce and operate on its own. We will support them to reduce the proportion of prepayments to downstream companies. For example, if you have already received money and can operate normally, you don't need your prepayments to be 100%. 10%, 15% or 20%, 30% of prepayment would be a buffer for downstream companies' cash flow and capital chain. This is the first aspect, that is, how we will firmly support core enterprises in the industrial chain to open up "blocking points".

Secondly, we are offering direct financing support for upstream and downstream firms on the industrial chain. We are taking the following measures. First, banks will pitch in if core enterprises do not make cash payment or pre-payment to upstream suppliers. If upstream suppliers can provide contracts or related invoices, which evidence that they have got orders from core enterprises, banks will directly offer financing support for their receivable accounts. If core enterprises don't make cash payments, suppliers can present related certificates of the transaction to the bank, which will then offer the suppliers financing for the receivable accounts. During the epidemic control period, we encourage banks to improve financing ratio appropriately so as to expand fund sources and increase liquidity. As for downstream dealers, if core enterprises do not lower the ratios of advance payments, we encourage banks to conduct pledge financing based on warehouse receipts or inventories, or conduct financing for advance payments based on orders. If you have a true transaction background and you have stock at the warehouse, the receipt or stock can be used as pledge to acquire financing from the bank. As for enterprises which are affected by the epidemic but have good credit status, banks can lower the security deposit ratio of the acceptance bills for them and reduce their commission charges so as to increase their cash flow.

Friends from the media have noticed that the above-mentioned measures should be based on real trading. Banks should step up risk prevention, while core enterprises, as well as upstream and downstream firms, should all be honest and not cheat. If you do not have an actual transaction but apply for this kind of financing, it would violate laws and regulation. If a financing application is based on real transactions, banks can offer sufficient support.

To smooth cash flow, we are mainly applying two measures: one is by financing core enterprises which link upstream and downstream enterprises; the other is to encourage banks to provide financing support directly to upstream and downstream micro, small and medium-sized enterprises. Thank you.

CNR:

We've noted that the epidemic has impacted the production and operation of private small and micro businesses, as well as self-employed business owners. In the collaborative resumption of industrial chains, how will you help SMEs resume work and production and realize their synergetic development with large enterprises? What financial supportive measures are being put in place? Thank you.

Xin Guobin:

Thank you for your question. Small and medium-sized enterprises generally have a lower capacity to deal with risk. They suffered a big blow from the epidemic and have greater difficulties in resuming work and production. As the department that oversees small and medium-sized enterprises, helping them resolve problems as they attempt to resume business is our utmost concern. Following decisions made by the CPC Central Committee and the State Council, all localities and departments have issued a series of fiscal, financial and social security policies and measures to help them resume normal business operations. 

First, we lower taxes and fees to reduce their burdens. For example, for a certain period of time, we lower VAT rates for small-scale taxpayers, exempt small and medium-sized employers from paying pension, unemployment and work-related injury insurances and reduce their contribution to employees' basic medical insurance. In addition to these measures, we encourage all localities to lower urban land use taxes, so leasers can lower their rents and property fees for tenants, and thus reduce the operating costs for enterprises. All localities have implemented a series of measures following the decisions made by the CPC Central Committee and the State Council. For example, the city of Qingdao established the "Good Leasers" Platform, which publishes a list of how much rent has been reduced each day by industrial parks, entrepreneurship and innovation bases, mass innovation spaces and so on. As of yesterday, 8292 businesses have had their rent and property fees reduced by a total of 160 million yuan thanks to 187 "good leasers."

Second, supporting measures have been strengthened to ease the financial strain on SMEs. Ms. Yang elaborated on this part just now. We have encouraged financial institutions to provisionally defer loan principal and interest repayments for SMEs. For eligible SMEs that have temporary liquidity difficulties, loan principal and interest repayments can be deferred until June 30. We have also increased the re-lending and re-discount quotas and lowered the re-lending rate, so as to support small and medium-sized financial institutions in offering more loans to micro- and small-enterprises at preferential rates. So far, some progress has been made in implementing these policies. For example, the Bank of Ningbo in Ningbo city has provided interest-free or low-interest loans for up to 30 days to eligible SMEs, allowing them to meet their provisional funding needs.

Third, we have upgraded services to strengthen confidence in MSME development. On February 9, the Ministry of Industry and Information Technology (MIIT) issued a notice on work programs to help SMEs resume operations and overcome difficulties caused by the COVID-19 epidemic. The notice guided local authorities at all levels to apply policies tailored to their local conditions and specific situations, so as to promote the precise resumption of orderly operations of SMEs by region and classification as soon as possible. For example, Guangdong province has established an online platform to respond to the needs of SMEs. By March 10, the platform had responded to a total of 1,998 claims related to SMEs, of which over 98% had been settled. Meanwhile, the MIIT has launched a database on gov.cn, the official website of China's central government, detailing all the policies that have been applied to support SMEs during the COVID-19 epidemic. The database lists all the supporting policies issued by relevant departments of the central government and local governments at all levels, which can be accessed by MSMEs via gov.cn. In addition, an app for SMEs to self-test their size and type has been developed to facilitate the implementation of preferential policies. We have also launched an online micro-course training program to strengthen guidance and training for SMEs. By March 12, the program included 318 courses and had received a total of over six million visits.

Fourth, we will cooperate and take concerted measures to unblock industrial chains. The interruption of industrial supply chains is the biggest difficulty facing SMEs in their resumption of work during the fight against the epidemic. In terms of breaking points and blockages in different industrial chains, the MIIT has organized for industrial associations and specialists to examine 50-plus major leading enterprises and over 7,000 core small and medium-sized supporting enterprises, and has made coordinated efforts to promote enterprises of all types to resume operation in a concerted way. Alongside the MIIT, local industrial and information technological authorities also followed its example, such as in Jiangxi province, where over 20 events have been held to increase connectivity according to different industries, regions and projects. Consequently, the resumption of work and production for 64 enterprises and 65 providers outside the province and 26 providers within the province has been realized in a timely manner. In the city of Sanming in Fujian province, an industrial chain support platform has been built for the steel, equipment manufacturing, new material, and modern agricultural industries, to match online supply and demand information for equipment production, factories, logistics and raw materials. The city of Shishi launched a successful live-broadcast event selling branded clothes, with turnover amounting to 53.7 million yuan (US$7.65 million) on the opening day. 

The MIIT will do more to help SMEs better resume operation over the coming period in the following four aspects: First, the State Council's leading group in promoting the development of SMEs will continue to play its full part in increasing the publicity and implementation of policies to add more vitality to SMEs. Second, major enterprises in different chains will take the lead in the concerted resumption of work and production for upstream and downstream supporting SMEs and promote their integrative development. Third, high-quality SMEs, including enterprises with high levels of expertise, advanced, unique or self-reliance technology, will take the lead in the orderly resumption of operation for various SMEs on the premise of making good preparations during the epidemic. Fourth, micro and small-sized enterprise demonstration bases for innovation and entrepreneurship and public service platforms for SMEs will play their full part in using new information technology to provide high-quality and efficient online and offline services for their resumption of operation. Thank you.

Yang Liping:

Thanks for your question. Concerning financial support measures, you may notice that most upstream and downstream firms of the core enterprises in the industrial chain are private, micro, small, and medium-sized businesses. Small in scale but large in number, their capabilities against risks are relatively weak. They are more vulnerable to external impact. The China Banking and Insurance Regulatory Commission (CBIRC) has paid great attention to financial service for those enterprises and encouraged financial institutions to increase credit expansion to those enterprises to reduce their financing costs. Here are some data. In 2019, loans to private enterprises increased by 4.4 trillion yuan year-on-year, and the number of enterprises that received loans increased by 31.5%. The annual interest rate on the total loans issued was 93 basis points lower than in the previous year, and the new medium- and long-term loans accounted for nearly 70% of the total new loans. These are all very gratifying changes.

Since the beginning of this year, the CBIRC has continued to promote financial institutions in the banking industry to increase credit supply and reduce overall financing costs to maintain a favorable growth trend in loans to private enterprises. According to relevant statistics, the comprehensive interest rates of enterprise loans dropped after the outbreak of the epidemic. Enterprises, with the effective comprehensive interest rate of existing and new loans dropping to less than 5% for 51% of the total enterprises, which means the financing costs of enterprises have declined further. 

We have just introduced the supporting policies for private, small, and micro-sized enterprises, most of which are upstream and downstream firms in the industrial chain. I want to repeat that in order to help them resume work and production, as well as gain business development, our policies are focused on both existing loans and incremental loans. Regarding existing loans, we will keep lending to medium, small, and micro-sized enterprises (including small and micro business owners and individually owned businesses), never call in loans ahead of the scheduled time, and will avoid delays in issuing loans. How many medium, small, and micro-sized enterprises, small business owners and individually owned businesses are there in total? There are more than 22 million such enterprises, and over 14 million of them are individually owned businesses. The second policy is based on the principle of marketization and legalization. We have implemented temporary measures to defer principal and interest repayment for loans already due since Jan. 25, 2020. The measures work not only for some special groups, such as lorry and taxi drivers, but also for relevant business entities with financial debts during the period when free access to toll roads was given. For those who are unable to repay principal and interest, banks are allowed to provide different support in various circumstances, such as delaying payment of interest, extending principal repayment periods, or rolling over maturing loans. As I just mentioned, for those medium, small, and micro-sized enterprises which have to undergo an extended period for recovery, they can negotiate with banks for a longer extension period beyond June 30. 

We have made a statistical statement based on the effects of the policies issued on March 1, and we received the statement on March 15. We conducted a quick survey on policy implementation in several banks and six provinces as well. According to the survey, many individually owned businesses have already enjoyed the benefits of the policies. For example, the data from the Agricultural Bank of China showed that individually owned businesses accounted for a considerable proportion. The statistics of Huaxia Bank showed that many medium and small enterprises have already gotten benefits from the policies. We believe that with the further implementation of the policies, more enterprises and banks will connect, and more businesses will enjoy the benefits of the policies.  

In terms of increasing the volume of loans, two measures are being considered. One is to continue strengthening credit support. I also have a couple of figures I would like to provide the press. This year, we will continue supporting both private as well as micro- and small-sized enterprises by requiring banks to increase the volume and lower the price of loans. This means that the total amount of loans released will be greater than the amount released previously, and the price of the loans will also be lower than before. The other measure is researching and evaluating the percentage of clients who obtained their first bank loan. This allows more enterprises, which have never received bank loans before, to get funding from banks now. We required five large stated-owned banks to keep growth rate of the inclusive loan balance for micro- and small-sized enterprises over 30% year-on-year for the first half of 2020. Policy banks will add a total of 350 billion yuan in special loans on the basis of last year's amount. In addition, the special loans will be released with preferential interest rates to private, micro-, small- and medium-sized enterprises. This year, different banks and financial institutions will also add over 500 billion yuan in loans for self-employed businesses based on the amount last year. Thank you.

Market News International:

The epidemic is spreading quickly in foreign countries, especially across Europe and America. Have any evaluations been made regarding the impact this may have on the resumption of work for the Chinese manufacturing industry? In particular, the impact on the many micro- and small-sized enterprises involved in importing and exporting. What policies will be implemented to cope with this situation? Thank you.

Xin Guobin:

Thank you for your questions. The epidemic has swept across the world, outstripping our predictions. Objectively speaking, the trend of industrial globalization is clear. It is also evident that the spread of the outbreak in European countries and the U.S. will impact and affect the development of Chinese manufacturing. This is also dependent though on the duration of the epidemic and the joint-efforts made by all nations. If the outbreak can be controlled relatively quickly, I believe the effect on China and the global economy will be limited. But if the duration is longer, there will be a certain impact on China for sure. However, from our perspective, China has the largest scale industry, the most complete product categories and the largest domestic market demand in the world. Therefore, we have a good foundation for the development of the manufacturing industry. We also have huge domestic demand and enormous product categories with supporting industries which are fully equipped. So, we believe that the effect on China is still manageable.

However, since China has been deeply integrated into the global industrial chain system, any changes in the global economy will impact and affect China to a certain amount. We will conduct serious research on this issue and enhance communications regarding relevant policies between governments all over the world. We will boost the resumption of work and production for industrial chains by implementing market-oriented methods. And hopefully, we will strive to lower the economic impact caused by the epidemic. Thank you.

Hong Kong Economic Herald: 

The industrial chain consists of interlocked links. Should any of them break down, upstream and downstream enterprises would be affected. What are the China Banking and Insurance Regulatory Commission's long-term plans on supporting the coordinated development of the industrial chain? Thank you. 

Yang Liping: 

Thank you for your question. You may have noticed that there are some temporary arrangements for coping with the epidemic's impact in the policies introduced earlier. For example, we will appropriately raise accounts receivable, or ratio of inventory and warehouse receipt pledge financing, and encourage banks to charge businesses with good credit records less cash deposit for acceptance drafts to increase the cash flow of upstream and downstream enterprises. Such policies were formulated with consideration to the situation that these enterprises didn't have cash revenues when they had to suspend normal production and operation due to the epidemic, and now, they need more cash flow to organize production and maintain operation, including cash for essential expenses arising from paying workers, keeping machines running, and other business activities. 

We have made some annual arrangements to support micro-, small-, and medium-sized enterprises (MSMEs). Just now, we have briefed some of our targets. For example, the five large banks will increase the balance of their inclusive loans to micro and small businesses by no less than 30 percent year-on-year in the first half of this year. There may be certain adjustments to the target as the situation changes, but we will not shift our long-term policy direction on guiding large banks to support micro and small businesses. 

We also introduced some policies on industrial chain financing, especially the one that is in great concern of upstream and downstream MSMEs of core enterprises — increasing working capital loans to core enterprises and setting a reasonable line of credit to ensure unimpeded capital flow between upstream and downstream enterprises. This should be a long-term arrangement. To tackle the two bottlenecks in the long run, first, we should give full play to the role of core enterprises in making the links unobstructed between upstream and downstream enterprises; second, we should make all-out efforts to help micro and small businesses solve financing difficulties and reduce financing costs. However, this is a relatively complicated issue. Earlier, when I cited the case that the core enterprises may occupy funds on account of upstream and downstream enterprises as an example, you may think the core enterprises refer to those in the manufacturing industry. Actually, there are also many other types of core enterprises in our industrial chains, such as e-commerce platforms and logistics companies. Recently, we have been planning to ask banks to reach out to them and carry out studies and discussions on how to utilize core enterprises in these industrial chains to smooth the capital chain between upstream and downstream enterprises.

We will make timely adjustments to our work when it is necessary. Thank you. 

Farmers' Daily:

It is currently the critical period for spring farming. We know that there is huge demand for agricultural materials, and Hubei province is one of the major regions for phosphate fertilizer production in China. What measures have been taken to ensure the regular supply of phosphate fertilizers so as not to interrupt the farming season?

Xin Guobin:

A few days ago, General Secretary Xi Jinping gave important instructions on the country's agricultural production for spring, emphasizing that full effort should be made to organize spring farmingand production in order to ensure the farming season is not missed and to guarantee the summer grain harvest. Now is the crucial time to prepare fertilizers for farming in spring. A regular supply of phosphate fertilizers is extremely important for both spring farming and production. The main work we have done is as follows: 

First, we have accelerated the resumption of work and production in phosphate fertilizer enterprises within Hubei province. We know that Hubei is an important production base for phosphate fertilizers in China, with its output of monoammonium phosphate (MAP) and diammonium phosphate (DAP) accounting for one third of the country's whole. In particular, places such as Yichang city have relatively high concentrations of phosphate fertilizer manufacturers in Hubei. As such, the MIIT is highly focused on the resumption of work and production of phosphate fertilizer enterprises in Hubei province. Back on Feb. 23, Minister Miao Wei personally spoke to the Yichang government by video link to learn about the resumption of work and production of local phosphate fertilizer enterprises, to study and resolve the existing difficulties and problems in transporting and funds, and to communicate and engage with the Hubei government and provincial joint prevention and control mechanism so as to promote the resumption of work and production in local phosphate fertilizer enterprises. As of March 10, a total of 19 of the 24 ammonium phosphate production enterprises had resumed production subject to the scheduling of Hubei province, and their ammonium phosphate production capacity has reached more than 80%. More enterprises are expected to resume work and production in the near future. Thanks to the resumption of work and production in Hubei enterprises, the province's annual production capacity is expected to surpass 10 million metric tons.

Second, we have linked the upstream and downstream of industrial chains and increased the total supply. We have enhanced trace scheduling of raw materials and accessories supply and production of ammonium phosphate enterprises in Yunnan, Guizhou and Sichuan provinces as well as primary compound fertilizer enterprises across the country. With regards to raw materials and accessories supply, for example, we have helped contact relevant manufacturing enterprises to provide several alternative plans for some enterprises with problems getting supplies of raw materials. If one enterprise is unable to provide supplies, we will consider another one and help them connect. As for transportation support, we have promoted and coordinated to solve problems related to railway transport. For instance, some enterprises have manufactured phosphate fertilizers, but been unable to ship them out. We connected with the China Railway Corporation in a timely manner to help and coordinate with railway carriage problems. In terms of financial support, we have also helped to coordinate with the People's Bank of China in solving the liquidity issues of key phosphate fertilizer enterprises. The financial institutions have done a great job in this regard.

Third, we have filled the regional supply gap by strengthening the connection between production and demand. We have jointly issued a document with the Ministry of Agriculture and Rural Affairs requiring that provincial agricultural, industry and information departments coordinate with local fertilizer producers. For provinces struggling with supply shortages, we will help them with cross-regional coordination. As of March 11, a total of 12 provinces have demanded to regulate supply. On the basis of considering the geographical distribution of supply and demand, as well as manufacturing enterprises' capacity to take new orders, we have recommended manufacturing enterprises to those in demand for them to choose from, effectively relieving the phosphate fertilizer shortage in some provinces. In the future, we will further follow up the fertilizer preparation for spring farming across the country. While ensuring the output, we will also coordinate allocation among regions. Thank you.

CRNTT:

China is one of the world's largest auto makers and auto markets. And Hubei province is home to numerous suppliers of auto parts. Reports indicate some overseas auto manufacturers have been forced to suspend production due to lack of the car parts. So what measures will be taken to support the resumption of the whole automotive industrial chain? Thanks.

Xin Guobin:

Thanks for your question. The auto sector has a long industrial chain that covers a wide range of areas and exerts an enormous impact on other fields. It's a typical international industry. China's auto manufacturers need to import some auto parts from the international market, and multinational enterprises also need to import auto parts from China. We know that each car has tens of thousands of parts, and each company has hundreds of tier one automotive suppliers and thousands of tier two and three suppliers. Hubei province is China's fourth largest automobile production base. In the process of epidemic prevention and control, some multinational enterprises, such as Volkswagen, BMW and Hyundai Motor, reported that some of their car parts were usually made in Hubei province and there was a shortage in stock. And these companies will face the risks of suspending production if their suppliers are unable to resume production and operation in time. Some domestic car makers also have suppliers in Hubei province. For example, among over 400 auto parts suppliers of Guangzhou Automobile Group, 156 are located in Hubei. To overcome such difficulties, the Hubei provincial department of industry and information technology worked with the companies to dispatch relevant inventory to meet production needs. Hyundai Motor, the South Korean multinational automotive manufacturer has wire harnesses manufactured in both Hubei and Shandong provinces. The company had to halt production due to a short supply of wire harnesses. To fix that problem, we worked with the departments of the related provinces to prioritize the resumption of work at the wire harness manufacturers. Now, Hyundai Motor is back on track of normal production and operation.

In addition, as the epidemic has been effectively contained in Hubei, we should put the resumption of work and production on the propriety agenda. We have already made contacts and communicated with the Hubei provincial joint prevention and control mechanism, the provincial department of industry and information technology, and the prefecture-level cities of the province. We plan to give priority to the resumption of auto parts manufacturers, which has also earned great support from the CPC Hubei Provincial Committee, the Hubei Provincial Government and the Hubei provincial joint prevention and control mechanism. Auto parts manufacturers in Hubei now are resuming production in an orderly way. For example, Dongfeng Motor Corporation is located in Hubei province, and most of its automobile production enterprises and auto parts suppliers are located there as well. So, Dongfeng was hit hardest by the outbreak. However, its truck production base in Shiyan city has already resumed work and production, with a daily output of more than 200 vehicles. Some auto parts manufacturers in Xiangfan city have also resumed work. Two passenger car manufactures in Wuhan city have resumed production, including Dongfeng Honda and Dongfeng Motor Corporation Passenger Vehicle Company. 

With combined efforts, we will forge ahead with the resumption of normal operations in China's automotive industry in an orderly manner. That will play a pivotal role in stabilizing the global supply chain. We will work to follow the resumption process of these companies, help them to solve any problems they may encounter promptly and ensure a stable global supply chain. Thanks.

Hu Kaihong:

That concludes today's press conference. Thank you, Mr. Xin and Ms. Yang. Thank you all.

Translated and edited by Wu Jin, Fan Junmei, Li Xiao, Wang Yanfang, Li Huiru, Lin Liyao, Zhang Junmian, Yan Xiaoqing, Zhou Jing, He Shan, Duan Yaying, Wang Qian, Wang Yiming, Wang Wei, Zhang Rui, Cui Can, Yuan Fang, Mi Xingang, Yang Xi, Zhang Liying, Guo Xiaohong, Wang Zhiyong, Zhu Bochen, Huang Shan, Jay Birbeck, Laura Zheng, David Ball, Geoffrey Murray. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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Read in Chinese

Speaker:

Liu Yongfu, director of the Office of State Council Leading Group of Poverty Alleviation and Development

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

March 12, 2020

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office. 2020 is the year of the completion of China's poverty alleviation tasks. On March 6, General Secretary Xi Jinping delivered an important speech at a symposium on securing a decisive victory in poverty alleviation. He emphasized the importance of overcoming the impact of COVID-19 to clinch a complete victory in the fight against poverty. Today, we have invited Mr. Liu Yongfu, director of the Office of State Council Leading Group of Poverty Alleviation and Development. He will introduce the measures to implement the guidelines derived from remarks made by General Secretary Xi Jinping on securing a decisive victory in poverty alleviation. He will also answer some of your questions. First, I'll give the floor to Mr. Liu.

Liu Yongfu:

Ladies and gentlemen, friends, good morning. Welcome to today's press conference. I would like to thank all of you for your long-term concern and support for China's poverty alleviation cause.

General Secretary Xi Jinping chaired a symposium on securing a decisive victory in poverty alleviation on March 6, at the critical moment for COVID-19 epidemic control and also the beginning of the 300-day countdown to the completion of the poverty eradication task. This symposium is the seventh one on poverty alleviation chaired by General Secretary Xi Jinping and was the largest of its kind in the past six years. The symposium was a teleconference attended by officials in provinces, autonomous regions and municipalities across the country, as well as responsible comrades at the county level in 22 central and western provinces who have signed the letter of responsibility for tackling poverty to the central government. At the symposium, General Secretary Xi Jinping fully acknowledged the achievements in poverty alleviation, made a profound analysis of problems and challenges, and issued new arrangements and strict instructions on securing a decisive victory in poverty alleviation and the completion of relevant tasks. Arguably, the symposium has charted out the direction to accomplish our poverty alleviation tasks and win the hard battle against poverty with determination.

This symposium has sent out a mobilization order for poverty alleviation to the entire Communist Party of China (CPC) and the whole society. It sounded a bugle for the victory in the fight against poverty, and provided fundamental guidelines for the completion of poverty alleviation tasks. It reflects the arrangements made by the CPC Central Committee on balancing epidemic prevention and control with economic and social development, as well as the plans of the CPC Central Committee on coordinating epidemic control and poverty alleviation with equal importance. The symposium has showcased General Secretary Xi Jinping's devotion to the people's well-being with a great sense of responsibility as a leader serving the people. It has also demonstrated our strong will and determination to win the fight against the novel coronavirus and the hard battle against poverty.

Since the symposium concluded, the State Council Leading Group Office of Poverty Alleviation and Development has been working with relevant parties to implement the arrangements made by the leading group. Government bodies at both central and local levels have been putting in enormous effort in this regard, learning from each other's experiences and forging ahead. With General Secretary Xi Jinping's guidance and hand-on efforts, as well as the strong leadership of the CPC Central Committee and the State Council, we have faith that we will win the fight against the COVID-19 outbreak, score a victory in the tough battle against poverty, and fully accomplish the task of poverty alleviation.

I would like to take this opportunity to briefly introduce the progress that has been made towards poverty alleviation and our future work plans. It is well known that in 2015 the Communist Party of China (CPC) and the Chinese government put forward clear targets on poverty alleviation. The aim was that by the end of 2020, all poor people and counties under the current standards would be lifted out of poverty and regional poverty would be resolved. After more than seven years of targeted poverty alleviation work, and especially intensified efforts over the past four-plus years, rural poverty population under the current standards has declined from 98.99 million at the end of 2012 to 5.51 million at the end of last year. The number of poor counties has also decreased from 832 to 52 this year. We are getting close to the goal of eliminating poverty. The income of impoverished people has increased noticeably and their working and living conditions in poverty-stricken areas have improved significantly. Socio-economic development in poor areas has accelerated remarkably and China's governance capacity for poverty alleviation has also improved considerably. These are our achievements so far.

Next, we will follow the arrangements of the CPC Central Committee and the requirements put forward by General Secretary Xi Jinping. First, we will minimize the impact of the epidemic on poverty alleviation work. We will not allow a scenario whereby the epidemic affects our progress in attaining the poverty alleviation targets. In particular, we will support the poor in seeking jobs outside their hometowns; we will carry out consumption-driven alleviation, focusing on the sale of agricultural products, especially those sold by poor people; and we will launch and resume poverty alleviation projects to ensure that they are completed in the first half of the year. Second, we will complete the remaining poverty alleviation tasks, focusing on the 52 counties and 1,113 most impoverished villages among the 2,707 poor villages. With supervision and scrutiny, we will make sure that they are lifted out of poverty on schedule. Third, we will consolidate the current achievements in poverty alleviation. Of the 93 million poor people who have been lifted out of poverty, some are relatively vulnerable. We must prevent these people from returning to poverty.

In addition, we will also prevent those living near the poverty line from falling into poverty. For those who have been lifted out of poverty, we will continue to carry out industry- and employment-based poverty alleviation work and follow-up on the task of relocating poor people. At the same time, we will establish a tracking and pairing assistance mechanism for vulnerable groups to prevent the occurrence of poverty and the emergence of new poverty cases. 

2020 is the final year in attaining the goal of eradicating poverty. We have already had to overcome many challenges, whilst the COVID-19 outbreak has brought new ones. I know you are very concerned about how we will meet the targets. Now I would like to take your questions on poverty alleviation. Thank you.

Hu Kaihong:

Thank you, Director Liu. We are now open to questions. Please identify your news outlet before asking your question.

CCTV:

I have a question for Mr. Liu. The year 2020 marks the target year for China's poverty alleviation endeavors, and less than 300 days are left before victory is secured. However，the ongoing COVID-19 epidemic has posed new challenges to the battle of poverty alleviation. Could you shed some light on the specific impacts of the epidemic on China's poverty alleviation efforts? There are some concerns that the poverty relief goals may not be achieved on time amid the epidemic. What do you make of that? Thank you.

Liu Yongfu:

Yes, you are right. When General Secretary Xi Jinping convened the meeting, we had 300 days left. Now we have only 294 days left. We are by no means saying that our poverty relief work will suddenly stop at a certain date, but there must be a "milestone" day. So, time is running out, indeed. The impact of the epidemic on poverty relief has been undeniable. But I would like to tell you that our confidence and resolution to fulfill the task will not alter due to the epidemic. We will stick to our goals and step up efforts.

The impacts of the epidemic are multifaceted. A major impact is the effect on the flow of people and goods due to the need for epidemic prevention and control. First, people's pursuit of work has been affected. A lot of impoverished households rely on finding employment outside their hometowns. Their pursuit of work has been affected, but the situation is changing for the better. Last year, 27.29 million poor people worked outside their hometowns. Until March 6, 2020, 14.2 million people had migrated outside their hometowns for work, accounting for 52% of the total number for last year. The number is slightly lower than in previous years. However, as our country turns a corner in epidemic control and the government has adopted a series of measures, the pace with which people are migrating outside their hometowns for work has accelerated. Between Feb. 28 and March 6, the number of migrant workers increased by three million. The pace is expected to continue to accelerate. Second, the sale of poverty relief goods has been affected, as well as tourism during the Spring Festival holiday. Although the spring is not a harvest season for most agricultural produce, the sale of some agricultural products in season has been affected. For example, the sale of Yunnan flowers has seen billions of yuan in losses, but we are gradually taking measures to cushion the impact. Third, the operation of poverty relief projects has been affected. Many projects that concern transportation，production, and drinking water need to be carried out at the village level. Until March 6, one-third of the projects had started. This work is also gaining momentum. As I said just now, the epidemic has affected our work in not a small way. But the impact has been lowered due to our measures. Some are trying to make up for the lost time. As the saying goes, when one door closes, another opens. Some short-term projects that are quick to yield profits have been launched. As we have finished the main work during the past years, we are confident about consolidating existing achievements and fulfilling the tasks on schedule. Thanks.

Kyodo News:

What are the current standards for poverty alleviation? For example, what is the standard for annual income? And, will those standards be adjusted this year? Thank you. 

Liu Yongfu:

The standards that China is using in poverty alleviation are quite comprehensive and cover three main aspects. First is income. The national poverty line is set at the per capita annual income of 2,300 yuan ($328) at constant price of 2011. According to the price index and other considerations, the actual poverty line reached 3,218 yuan by the end of 2019, and we plan to raise it to around 4,000 yuan this year. However, I would like to share some additional information with you. According to registration data, the per capita annual income of those who have been lifted out of poverty reaches over 9,000 yuan, and that of those still in poverty is more than 6,000 yuan. Income serves as a fundamental standard, but not the only one, as we still have the standards of "two no-worries" and "three guarantees."

Second is "two no-worries." This refers to ensuring that those who used to live in poverty no longer have to worry about food or clothing. We have succeeded in this case. Third is "three guarantees." This refers to the goal of guaranteeing compulsory education, basic medical services and housing security. Some children at the compulsory education stage have dropped out of school, but the number is very small. Regarding basic medical services, we have built a large number of hospitals, health centers and clinics in counties, townships and villages, so as to ensure that all villages have clinics and rural doctors and that impoverished people have access to medical services. We have also established a basic health insurance system, serious disease insurance system and medical assistance system. Moreover, the social security network for medical insurance has also been established. Consequently, we can provide convenient medical services and ensure access to basic health care for impoverished people. In terms of housing security, we have provided safe housing for over eight million poverty-stricken households over the past few years, and we are working hard to provide more. Moreover, ensuring access to safe drinking water is also a priority. According to our monthly statistics, there are approximately 150,000 people nationwide who do not have access to compulsory education, basic medical services, housing security or safe drinking water. Of course, the number may vary from time to time due to different conditions. For example, different seasons or construction of projects can all lead to shortage of drinking water. However, we will ensure that these problems can be spotted and fixed in a timely way. Moreover, the number of children who drop out of school also varies frequently due to multiple uncertainties, such as parents going to other places for work, their difficulties in getting to school or their reluctance to go to school, which in particular, requires our repeated persuasions. In conclusion, the standards of "one income," "two no-worries" and "three guarantees" are our comprehensive standards for poverty alleviation.  

Despite the impact of the epidemic this year, our basic standards for poverty alleviation will remain unchanged. We will not lower or raise them and will adhere to the standards unswervingly. Thank you.

Thecover.cn:

Since China first began its fight against poverty, the country has lifted more than 90 million people out of this condition. In this massive poverty alleviation campaign, how will you consolidate progress and effectively prevent people from slipping back into impoverishment? Thank you. 

Liu Yongfu:

Currently, only a few million people are living under the poverty line in China. However, it is important to maintain poverty alleviation efforts to ensure that the population of over 93 million people who have left this situation does not slip back into poverty. For years, we have been committed to the task. As a result, the number of people who have returned to impoverished conditions fell year by year, down from over 600,000 in 2016 to 200,000 in 2017, tens of thousands in 2018, then further dropped to the most current figure in 2019 of only several thousands. Although the quality of poverty reduction work has improved, we should strive to surpass our original goals and concentrate our efforts in three areas:

First, we should continue to pursue industrial development. Developing industries take steadfast dedication and strong effort.

Second, we should ensure that migrant workers can work in cities to increase their income. This will produce the fastest results to relieve impoverished farmers. So we should support them in every way to work in cities and have a steady income. 

Third, we should provide further support for those relocated from inhospitable areas. Nearly 10 million registered impoverished, and 5 million non-impoverished people were relocated from poverty-stricken areas. We should concentrate our efforts on supporting them to develop industries and find jobs.

What's more, a guideline on establishing supervision and support mechanisms for people to stay out of poverty has been formulated and will be published very soon. People with a risk of falling back into impoverishment should be identified, and people living on the poverty line should also be identified. We should identify them in advance and offer them the necessary help and support before they sink or slip back into poverty. Thank you.

China Media Group:

During the COVID-19 epidemic, banning wildlife trade has been part of certain efforts to meet the requirements of the epidemic prevention and control work. However, as we known, specific types of animal farming have been developed as the local special pillar industry in many poverty-stricken areas, contributing needed income locally. The policies established will have huge impact on these areas, so are there any programs to ease the impact for farmers and these areas? And what impact will this bring to the progress and achievements in poverty alleviation?

Liu Yongfu:

Regulations and laws were established before on wildlife farming limitations and bans, and there is regulation particularly dealing with eating wild animals. Recently, decisions were made by the Standing Committee of the National People's Congress on banning consumption of wild animals. As you mentioned, in certain rural areas, they do undertake wildlife farming and trading businesses developed as local special industries. However, the size is limited, so they are not "pillar industries" of those areas. Those areas with an intention to develop the wildlife businesses as the special industry have indeed invested hundreds of thousands of yuan or even millions of yuan in the businesses. However, none have assumed the status of a large-scale industry. Accurate data on this has not showed up in the statistics.

After the decisions went into effect, relevant departments have been developing detailed catalogues that will list what animals can be raised and which cannot. No matter what the current situation is, we will ensure that the decisions are carried out, the laws are put into effect and outmoded customs are abolished eventually. For those businesses that have continued to adopt wildlife farming, we will close down them or help them change into other business lines. For their losses in this regard, we will provide multiple forms of assistance, which will include finding them alternative products or help them switch into other production lines. In general, it will not have much impact on the poverty alleviation work, and it will not have any major impact on completing our tasks in particular. You can rest assured on that. Thank you.

CRNTT:

At present, there are still 52 poverty-stricken counties and 5 million people who have not been lifted out of poverty. With less than 10 months to go before winning the battle against poverty, how can we ensure that these remaining people will get out of poverty? Thank you.

Liu Yongfu:

52 counties, 2,707 villages and 5.51 million people have not been lifted out of poverty, but it is our task to accomplish by the end of this year. At the beginning of our fight against poverty, we advanced our work as a whole. Later, we found that it's more difficult in those deeply impoverished areas. On June 23, 2017, General Secretary Xi Jinping presided over a symposium on poverty alleviation in deeply impoverished areas held in Taiyuan of Shanxi province, which determined the "three regions" (Tibet, the four prefectures of Hotan, Aksu, Kashgar, and Kizilsu in southern Xinjiang, and the ethnic Tibetan areas in Sichuan, Yunnan, Gansu, and Qinghai) and the "three prefectures" (Liangshan Yi Autonomous Prefecture in Sichuan, Nujiang Lisu Autonomous Prefecture in Yunnan, and Linxia Hui Autonomous Prefecture in Gansu) as the focus of our work. Besides the "three regions and three prefectures," 169 crucial poverty-stricken counties have been designated as the focus of our work. We have increased support and intensified our work in those areas. By the end of last year, 52 poverty-stricken counties, 2,707 poverty-stricken villages and 5.51 million people were still living in poverty. General Secretary Xi Jinping has required that 1,113 villages, out of the 2,707 villages in these 52 counties, should be put under supervision, which is actually a step forward in deepening our poverty relief work. The seven provincial-level regions involved are required to formulate implementation plans, and all counties and villages are required to formulate specific plans so as to accomplish the task of poverty alleviation.

For example, the "three regions and three prefectures" recorded 5.32 million poor people in 2013. After the Taiyuan Symposium, we formulated an implementation plan for poverty alleviation in deeply impoverished areas. It was a three-year plan to be conducted from 2018 until 2020. By the end of last year, 85% of the task had been completed, and 95% of the funds were in place, which was close to completion. In 2013, the number of poor people was 5.32 million, and the incidence of poverty was 25.5%. By the end of 2017, when the plan was formulated, this number had been brought down to 3.05 million. After two years, there are still 430,000 people living in poverty, and the incidence of poverty has dropped to 2%. The rate of decline in deeply impoverished areas is faster than that in western China. From 2013 to 2017, the incidence of poverty fell by 11 percentage points, and by 12.6 percentage points in the following two years. The speed is accelerating. Therefore, we firmly believe that these 52 counties and more than 1,100 villages, with more support and work following this method, will be able to get rid of poverty by the end of this year. Thank you.

Phoenix TV:

I have two questions. First, the impact of this epidemic has been relatively large. Do you have any statistics on, or have you been focusing on new poor families created by the epidemic? Second, some places such as Guangxi province have established temporary jobs for the poverty-stricken families. Should such a short-term "blood-transfusion-style" practice be advocated? How do you view jobs of this nature in the future? Thank you.

Liu Yongfu:

Since the poverty alleviation campaign began, we have been conducting monitoring every year. Statistics are available. Just now I reported that the number of people falling back to poverty has been decreasing year-on-year. We also have statistics for those at risk of falling back to poverty or at risk of falling into poverty. Around two million people are at risk of falling back to poverty, and about three million are at risk of falling into poverty. That means a total of about five million people, plus the remaining five million impoverished people at the end of 2019. So, our task involves lifting 10 million people out of poverty this year. You just mentioned that some places have set up temporary public welfare jobs, which is also common across the country. During the poverty alleviation campaign, some public welfare posts can be set up. Government-invested projects concerning people's livelihoods can provide public welfare jobs for the poor. This approach helps them by giving them work, as they will have an income. This has been a successful approach in many areas and we will continue adhering to this approach. However, we must also gradually improve the setting of public welfare posts. Public welfare posts should only be set up when there is a need for public welfare undertakings. The posts requires holding public welfare activities, and impoverished people should go to work. In some places, the public welfare posts have turned into a kind of welfare. That is not right. So, we must gradually regulate this.

Except for China, I do not know of large-scale photovoltaic power stations being established for poverty alleviation elsewhere. In the process of poverty alleviation, tens of thousands of village-level photovoltaic power stations have been built in impoverished villages across the country. Each power station of around 300KW can produce an annual income of more than 200,000 yuan. This income can be regarded as the collective income of a village. In the beginning, some places distributed money directly to poor households. Now we encourage them to set up public welfare posts that allow poor households, semi-able-bodied laborers and less advantaged laborers to work. Their income ranges from 500 to 600 yuan per month, up to 800 to 1,000 yuan per month. By engaging in public welfare services, they solve the needs of public welfare causes, such as road maintenance, care for the elderly and cleaning. Due to the impact of the epidemic this year, more efforts must be made in this regard. A total of 80% of the revenue from village-level photovoltaic power stations will be used to create public welfare posts. Therefore, we are advocating the approach you just mentioned, but we must gradually implement regulations to prevent supporting "lazy people." Thank you.

China Education Television (CETV):

It is generally recognized that, to alleviate poverty, we need first to develop education, a major approach identified as of great significance in avoiding impoverishment passing from one generation to another. My question is: what additional roles should education assume when the anti-poverty campaign is being challenged at this most critical moment?

Liu Yongfu:

Poverty alleviation can be achieved by means of education, which enables an underprivileged population to gain access to a sea of knowledge and professional competences, signaling a farsighted and fundamental policy adopted to ensure poverty is not transmitted to coming generations. That is a consensus reached around the globe. To make the consensus adaptable to China's actual situation, we have taken a number of specific measures as follows:

First, the quality of nine-year compulsory education should be definitely guaranteed. All children reaching the age covered by compulsory education should be admitted to schooling and the pedagogic quality should continue to be improved. This must-do item is among a number of criteria for evaluating success in the work of poverty alleviation.

Second, the development of vocational training, higher education and preschool teaching must be stimulated. Policies are carried out for those who have failed in the entrance exams for senior middle schools or schools of higher education. Each of those students, who can receive an annual grant of at least 3,000 yuan (US$429.3), are enabled to continue their studies in professional training schools and graduate as professional technicians to fill the vacancies in urban and rural labor markets. This policy, which we have focused the most in recent years, has proved highly feasible. Meanwhile, we have encouraged institutes of higher education to target less developed regions by enlarging enrollment of local students, with hundreds of thousands of seats being made available each year. Before 2013, no student in many poor villages could be admitted to a university, but, now, that is no longer the case in a majority of the poverty-stricken areas. Meantime, pre-school education can serve as another example. To ensure the quality of compulsory education, the children, who do not speak standardized Chinese in some regions inhabited by ethnic groups, will study the language before entering primary school. By working with the Ministry of Education, we have launched a pilot program in Mt. Liangshan, Sichuan province, to teach local children, almost up to the age of normal schooling, to speak standardized Chinese. Notable progress has been made among roughly 300,000 local youngsters aged between four and six. Some of them who were admitted to schools last year have scored higher in tests. 

Third, education to nourish the development of thought is indispensable. Although to teach people with literacy and skills is inevitable, to cultivate the thoughts, including, hygienic and disease prevention awareness as well as diligent, hardworking and frugal spirits, are also instrumental, say, to the change of deep-seated wrong habits. That is why we should always take education an approach to eradicate poverty in the long run. Thank you.

China Poverty Alleviation:

We have known that since last year, the State Council Leading Group Office of Poverty Alleviation and Development has set up inspectors based on management style and special working groups. What effect did this have last year? In terms of management style, what measures has the State Council Leading Group Office of Poverty Alleviation and Development taken? Thank you.

Liu Yongfu:

The work of poverty alleviation is not only a great cause, but also a serious and difficult endeavor. Without good management style and strong abilities, we cannot complete the task. General Secretary Xi Jinping has always paid attention to the promotion of ethical standards, which mainly revolves around implementation, problem-solving and reducing the burden on the grassroots. Now we are going to investigate the work undercover. We will not simply let local governments fill in forms, nor will we listen to reports, including rectification issues. Instead, we will listen to the introductions by local governments and read the written materials, but we will also visit the villages and households. We have listened widely to the opinions of the local people. We are not working on filling in forms and reporting the numbers, but in fact, we still have some work that has not yet been fully implemented.

Since the COVID-19 outbreak, we started exploring the establishment of a response mechanism from Jan. 28. Although we cannot go to the epidemic area, we can acquire the situation at the grassroots. I think this is also a change in the style of working. During the period of epidemic prevention and control, we have been paying attention to the construction of the management style. Without a good working style, it will not be possible to achieve the desired results in poverty alleviation, and we will have to continue the work. Thank you.

Hong Kong Economic Herald:

Parts of the country have basically completed their poverty alleviation tasks, and some officials in charge of the work seem to think they can now somewhat relax with the job done. Does the accomplishment of a poverty alleviation task mean an end to the work of poverty alleviation? Thank you.

Liu Yongfu:

There is indeed such a trend. As more and more people, and poor counties, are lifted out of poverty, a small number of grassroots cadres and officials in charge of the poverty alleviation work might have thought that accomplishing the task would bring a relief for them. This tendency is true, but is not the mainstream. General Secretary Xi Jinping has pointed out this problem since 2018, saying we must not remit and slack off in our efforts. He has repeatedly stressed: "The last part of an endeavor is the hardest to finish." Generally speaking, grassroots cadres and those in charge of poverty alleviation locally have been keeping up their efforts.

Here are some data I'd like to share with you. A total of 99% of the working teams dispatched to various villages across the country are in place this year, and 97% of the cadres sent to villages have continued in their work despite the severe epidemic situation. They have mainly undertaken two assignments in the present situation. First, epidemic prevention and control; second, poverty alleviation. There is some relaxation perhaps, but is not the mainstream. We must always keep up our efforts and work harder just as required by General Secretary Xi.

As for your second question, poverty alleviation has its own special meaning. Its task is to eradicate absolute poverty that has remained unresolved in China for thousands of years, such as the basic survival problems due to lack of food and clothing, and the harsh environmental conditions for development, which are of an historical nature. However, this is not to say that there will be no poverty in China when absolute poverty is eliminated. After accomplishing the poverty alleviation task, China will shift its focus from addressing the challenges of absolute poverty to alleviating relative poverty, and next, we will address the development gap to prevent growing income disparity and achieve common prosperity. Different measures may be taken to eradicate absolute poverty and alleviate relative poverty, and the tough battle against poverty may not be the same as our routine work to reduce poverty. However, there will be no end to poverty alleviation, and we will continue working on this. Thank you.

Hu Kaihong:

Due to the time limit, we can only take two more questions.

Xinhua News Agency:

Mr. Liu, you mentioned that many measures targeting the 52 poverty-stricken counties have been put forward since the COVID-19 epidemic outbreak to reduce its impact. Are there any plans on the standards, timetables and detailed arrangements regarding lifting them out of poverty? My second question is, as the fight against poverty has entered the final stage, what are the arrangements for a national census on poverty alleviation? Could you please explain a little? Thank you.

Liu Yongfu:

The standards for eliminating poverty won't change. They are income, a guarantee that poor people do not need to worry about food or clothing, and that they have access to compulsory education, basic medical services and safe housing. The timings generally will not change, either. Some places like Liangshan and Nujiang may postpone the relocation of poor people for one or two months. So, some places may make a few adjustments, but the issue must be resolved this year. Some places may complete the task a little late, but all the plans were made allowing for unknown circumstances. So as to ensure the accuracy of the achievements in poverty alleviation, a nationwide census will be conducted this year. The related deployment has been made and it is expected to be completed in the second half of this year or at the beginning of next year. Thank you.

Bauhinia Magazine: 

Many entrepreneurs and non-governmental institutions in Hong Kong have been actively engaged in charity and poverty alleviation on the Chinese mainland. Mr. Liu, how do you evaluate Hong Kong's contribution to poverty alleviation on the mainland? Thank you. 

Liu Yongfu:

As you just mentioned, Hong Kong's ties with the mainland have always been close and are getting closer. The SAR government, social organizations, entrepreneurs and people of Hong Kong have done a lot of work and played an effective role in the development of charity and poverty alleviation on the mainland. In particular, the SAR government has provided assistance to Nanjiang county in Sichuan province. In 2013, the county was home to 70,000 to 80,000 impoverished people. It was removed from the poverty list in 2018 and all impoverished people there were lifted out of poverty in 2019. The area has benefited from contributions by the SAR government and people from all walks of life in Hong Kong. Social organizations and the Hong Kong people have also done a lot of work. The "Heifer Project," which has operated on the mainland for almost 20 years, provides impoverished households with a heifer cow, allowing farmers to learn the skills necessary to raise cattle. The cow is then transferred to another household after it produces calves. This project has benefited around 20,000 households in six provinces across China, many of them poor families. Social organizations, entrepreneurs and the people of Hong Kong have also helped a lot in every major natural disaster on the mainland, including the COVID-19 outbreak. We are very grateful and will not forget it. Thank you.  

Hu Kaihong:

That concludes today's press conference. Thank you, Mr. Liu. Thank you all.

.

Read in Chinese

Speakers:

Zhan Chengfu, vice minister of civil affairs

Liu Xitang, head of the Department of Social Assistance, Ministry of Civil Affairs

Chen Yueliang, head of the Department of Primary Level Political Units Development and Community Governance, Ministry of Civil Affairs 

Yu Jianliang, head of the Department of Elderly Care, Ministry of Civil Affairs 

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

March 9, 2020

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference held by the Joint Prevention and Control Mechanism of the State Council. Today we have invited Mr. Zhan Chengfu, vice minister of civil affairs, who will brief you about the work of civil affairs departments in the struggle to control and prevent the spread of the COVID-19 and to secure people's basic livelihood. Also present today are Mr. Liu Xitang, head of the Department of Social Assistance, Ministry of Civil Affairs (MCA); Mr. Chen Yueliang, head of the Department of Primary Level Political Units Development and Community Governance, MCA; and Mr. Yu Jianliang, head of the Department of Elderly Care, MCA. They will also be available to answer your questions. First, I give the floor to Mr. Zhan Chengfu.

Zhan Chengfu:

Ladies and gentlemen, friends from the media, good morning. Today, my colleagues and I will introduce the efforts of civil affairs departments to control and prevent the spread of COVID-19, as well as to secure people's basic livelihood. We will also answer your questions.

As we all know, the majority of elderly people, orphans, as well as children and people with physical disabilities are the most vulnerable segments of our society. They have suffered far more than the rest of the population during the epidemic prevention and control work. Merciless as the virus is, we human beings are sympathetic and caring. The CPC Central Committee and the State Council have always taken people's livelihood, especially that of disadvantaged groups, as its top priority. Since the outbreak of COVID-19, General Secretary Xi Jinping has issued important instructions on numerous occasions that institutions dealing with the elderly care, social assistance, children's welfare and mental health should make even greater efforts to prevent and control this virus and provide relevant assistance to those deemed vulnerable. Recently, the leading group of the CPC Central Committee on the prevention and control of the epidemic and the State Council's Joint Prevention and Control Mechanism have reviewed and released many important documents concerning civil affairs. Unified deployments have been made in order to further improve the work of epidemic prevention and control in institutions providing the wide range of civil affairs services, fully implement the favorable policies for frontline community workers, and secure the basic livelihood of vulnerable groups in the midst of the epidemic. These fully reflect the care from the CPC Central Committee and the State Council for community workers as well as people in need of civil services, demonstrating the superiority of the system of socialism with Chinese characteristics. Calls have been issued urging the civil affair departments of all levels to spare no effort to live up to the central government's trust and people's expectation.

Since the outbreak, the Ministry of Civil Affairs has undertaken many actions and fully performed its duty, coordinating and promoting epidemic prevention and control work along with civil affairs work. At the civil affairs sector, we implemented the major decisions and arrangements made by the CPC Central Committee and the State Council on epidemic control and economic and social development. Our work can be summarized in the following aspects. 

First, we have strengthened the organization and its leadership, and improved our execution capacity in regard to the decisions and arrangements made by the CPC Central Committee and the State Council. The ministry's leading party members' group set up a leadership team on prevention and control work in addition to seven special teams to make special arrangements and implement the requirements of duty regarding civil affairs service organizations, urban and rural communities, charitable donations, as well as civil affairs authorities. The ministry's leading party members' group and the leadership team on epidemic control have held 13 meetings, in order to learn the key guidance made by General Secretary Xi Jinping and the decisions and arrangements made by the CPC Central Committee, as well as to formulate working guidelines to guide prevention and control work across China.   

Second, we fully supported the prevention and control work in Hubei, and especially in Wuhan. We formulated in a timely way various policy documents on strengthening the supervision of charitable donations, issued notices to charity organizations across the country, and guided charity forces to donate to Wuhan, Hubei and other regions hit hard by the epidemic. We have sent work teams to Wuhan to guide charitable donations as well as civil affairs service institutions there on three occasions. We have also coordinated Jiangsu, Anhui and Hunan provinces to organize three teams totaling 118 people to rush to Wuhan to help with elderly care institutions in the city. We have also guided civil affairs authorities in Wuhan and Hubei to carry out temporary assistance for people stranded there, as well as strengthened support for people in difficulties and special groups. 

Third, we have mobilized personnel and resources from all sectors of society in the epidemic prevention and control work. We have offered guidance to communities in both urban and rural areas to establish or improve dedicated working mechanisms and grid management systems, fully implement joint prevention and control measures, unite the masses in creating a defensive line against the coronavirus, and coordinate society-wide efforts to strengthen care for frontline community workers. Meanwhile, we have encouraged various industrial associations at different levels, charities, social work and voluntary institutions to leverage their respective strengths to participate in the epidemic prevention and control work with systematic steps and in accordance with the law.

Fourth, we have taken solid measures to ensure the protection of staff and residents working or living in civil affairs service institutions. We have issued a series of guidelines to guide institutions of nursing homes, child welfare institutions, mental health welfare centers, relief and management institutions for vagrants and beggars, as well as funeral services, in the epidemic prevention and control work. For institutions offering face-to-face services, such as the registration of social organizations and marriages as well as welfare lottery sales, we have introduced measures including adequate ventilation and disinfection, online appointments, providing services at different time periods and reducing mass gatherings to curb the spread of the virus. We have also strengthened the epidemic prevention and control work at civil affairs offices, thus maintaining the nationwide steady operation of the civil affairs system.

Fifth, we have promoted the resumption of work in the civil affairs system in a prudent and orderly manner. In regions where the epidemic situation is not severe, we have offered guidance for civil affairs service facilities to receive and accommodate the elderly, children and people with disabilities. We have also guided institutions offering face-to-face services there in the resumption of work at an appropriate time using a region-specific and multi-level targeted approach. We have improved our services for disadvantaged groups including childless and "left-behind" elderly, children in difficulties, as well as residents with serious illnesses and disabilities, so that they can receive heartwarming care from the Communist Party of China (CPC) and the Chinese government amid the COVID-19 outbreak.

Generally speaking, under the strong leadership of the CPC Central Committee, the civil affairs system has adopted a vigorous and orderly approach to the epidemic prevention and control work, effectively ensuring the safety and health of the groups that we serve, and contributing to the overall progress in nationwide epidemic prevention and control. It is worth noting that local civil affairs officials and community workers, with the big picture in mind, have stuck to their posts with selfless devotion to safeguarding the people's health. Here I would like to call for more media coverage of their touching stories.

However, there is still a lot of room for improvement in our work, and we invite your oversight, comments and valuable advice. Going forward, we will continue to promote the in-depth study of the guiding principles embodied in General Secretary Xi Jinping's important speech on coordinating the epidemic prevention and control work with socio-economic development, and fully implement the three important documents recently issued by the Leading Group of the CPC Central Committee on Novel Coronavirus Prevention and Control, and the Joint Prevention and Control Mechanism of the State Council. We will take a more organized approach to epidemic prevention and control, endeavor to achieve this year's tasks, and make positive contributions to winning the people's war against the epidemic, finishing the building of a moderately prosperous society in all respects and completing the 13th Five-Year Plan.

That is all for my introduction.

Hu Kaihong:

Thank you, Mr. Zhan. Next, we will move on to questions. Please identify your media outlet before asking your question.

CCTV:

We noticed that the epidemic has reached some nursing homes in Hubei and other places recently. May I ask Vice Minister Zhan Chengfu, what is the current situation of epidemic prevention and control in civil affairs service institutions, including welfare homes for children as well as nursing homes? What measures will the Ministry of Civil Affairs take to prevent and control the epidemic? Thank you.

Zhan Chengfu:

Thank you for your question. First, allow me to explain the system of civil affairs service institutions for everyone. It is composed of five main types of institution: nursing homes, welfare homes for children, mental health welfare institutions, relief and management institutions for vagrants and beggars, and funeral services. Excluding funeral services, the first four institutions total 45,239 facilities, which serve more than 2.15 million people. There are 1,881 funeral services with cremation function. Recently, the "main battlefield" of civil services in the fight against COVID-19 has been in Wuhan. These institutions have all now implemented closed management, all those in care have undergone nucleic acid testing, while suspected and confirmed patients have all been isolated and treated following the guidance on receiving and treating all these in need via thorough examination. It should be noted that the epidemic management of civil affairs service institutions is carried out by local authorities, and relevant information will be issued by local governments. So, please check the information and data released by authorities at all levels.

Since the epidemic outbreak, the Ministry of Civil Affairs has prioritized the prevention and control of the epidemic in the civil affairs service institutions, and made every effort to ensure the safety of the institutions and people in care. That is a basic introduction, now we have carried out four major tasks: First, we have strengthened supervision and implementation. From the leaders of the ministry to the divisions and bureaus, eight working groups have been sent to local civil affairs departments to guide their work. Second, classification guidance has been conducted. We have formulated 18 guidelines, work regulations and process guides. Third, we will fully support the work in key epidemic areas. Two vice ministers led the teams to Wuhan to guide the charity donation and pension service work and 118 professionals in elderly care have been coordinated and sent to Wuhan to help. Fourth, we have carried out timely investigations and dealt with prominent problems. For example, we worked with the civil affairs departments of Hubei province and Wuhan to research and assist those stranded in Wuhan after the outbreak of the epidemic.

Overall, these measures have proven useful. Of course, we also clearly realize that the civil affairs service institutions have been crowded and the environment is closed-off. Also, the elderly, people with disabilities, orphans and vagrants and beggars living in the institutions have weak self-protection abilities, and funeral services also directly handle the deceased. As such, the risk of infection is high, and the prevention and control situation remains very grim. We will continue to tighten the controls, focus on key areas and key links, and consider general areas. We will continue to implement the existing policies and summarize the good experiences. Thank you.

Hong Kong Economic Herald: 

Many people who were living a passable life have met difficulties since the outbreak of COVID-19. They may not thoroughly understand the social assistance policies and procedures. How will the civil affairs authorities respond to and address their needs in a timely manner?

Zhan Chengfu: 

The Department of Social Assistance of the Ministry of Civil Affairs is in charge of social assistance work. I'd like to invite Mr. Liu Xitang to answer your question.

Liu Xitang:

Let me take this question. The outbreak of COVID-19 has brought many challenges for social assistance work. We have taken a slew of measures to promptly respond to public concerns and guarantee the living security for those who are in severe difficulties. It is our mission to help and save anyone in need, an important guideline for our work. On Jan. 29, we announced new arrangements and deployments in a notice. Responding to the new requirements of the Central Leading Group for COVID-19 Prevention and Control based on the current situation of epidemic prevention and control, we have adopted the following measures to promptly respond to people's needs for social assistance.

First, we have streamlined all procedures. In the past, to fairly assign the minimum living allowances, we have to go through a door-to-door household survey, democratic appraisal, and publicizing beneficiaries. Now, we conduct the household survey in a long-distance-range or non-contact mode, such as making inquiry calls or verifying applicants' financial situation based on big data. We have established a household financial situation checking system that can be shared among different departments. Also, we have halted the work of disqualifying basic living allowances beneficiaries in epidemic-stricken areas and it won't start until the crisis has passed. 

Second, we encourage the use of information technology. We deployed local civil affairs departments to respond promptly to applications, and they have taken to online platforms to manage the work of social assistance. For example, Sichuan province has developed an online platform to manage this vital work. People can apply through the WeChat remotely. We have also taken other measures, such as delegating the authority to examine and approve items down to lower administrative levels. For the hardest-hit areas we permitted government agencies to delegate the authority to examine and approve items for temporary assistance directly to communities. Community workers in Wuhan and other areas most affected by the epidemic can respond to the need of people in difficulties promptly and carry out assistance at first hand, and the information about the application of social assistance can be added later.

The third is to open up helplines. Channels through which the people in difficulty can make their voices heard about any difficulties are being smoothed out. People can dial the helplines for help and know whom to ask for. The Joint Prevention and Control Mechanism of the State Council has released the helpline information to the public, and the local governments have opened up the 12345 hotline service. We have also required the local civil affairs departments to promote knowledge of these helplines. Now, the helplines have been opened up at the county level, and we will put the information on the website of the Ministry of Civil Affairs.

Fourth, there is the aspect of policy promotion. From Jan. 29 to now, the Ministry of Civil Affairs, local governments and the Central Leading Group for COVID-19 Prevention and Control have issued a series of measures to protect the people in need. How can these measures be conveyed in a timely manner? We need to strengthen the promotion of these policies and encourage the use of new media, such as Weibo and WeChat. So, we hope you can follow our WeChat official accounts (ID: ZGMZWX and zhongguoshehuibao). Policies will be released on these platforms in the first place, and we also welcome more reports about our policies. Thank you.

China News Service:

Mr. Zhan just said that China has issued regulations to care for community workers on the frontline of the epidemic prevention and control work. I would like to ask, what key measures will be implemented further? Thank you.

Zhan Chengfu:

After the institutional reforms, the Department of Primary Level Political Units and Community Development of the Ministry of Civil Affairs was renamed the Department of Primary Level Political Units Development and Community Governance. Today, we have the director-general of the department Chen Yueliang present. He will answer your question.

Chen Yueliang:

Thank you for your interest in community workers. The urban-rural communities are the frontline of the joint epidemic prevention work, and are also the most effective control unit in preventing external imports and internal spread. Since the outbreak of the novel coronavirus, urban and rural community workers have implemented the decisions and plans of the CPC Central Committee and the State Council, stuck to their position and worked around the clock. Fighting at the forefront of the anti-coronavirus battle, community workers have made great contributions to curbing the spread of the virus. As of March 8, a total of 53 community workers had died in the line of duty, of which 92.5% were CPC members.

General Secretary Xi Jinping has repeatedly stressed caring for urban and rural community workers, and Premier Li Keqiang has also made specific instructions. To implement their guiding principles, the Central Leading Group on the Prevention and Control of COVID-19 held a meeting to discuss practical difficulties and questions faced by frontline community workers. It also specified basic requirements for such areas as strengthening incentives, security, safety protection and humanistic care. Eight "heartwarming" decisions have been made to solve the problems in the following five aspects: 

First, we will solve the problem of unclear regulations regarding subsidies. Concerned about the hardworking community workers, we will ensure proper subsidies are given to community workers who fight the epidemic on the frontline in urban and rural areas. Provincial-level government will guide the cities and counties to establish standards for subsidies.

Second, we will solve the problem of inadequate protection policies. Community workers in urban and rural areas who are injured or become ill during their work in the epidemic prevention and control, and conform to the conditions listed in the Regulations on Work-Related Injury Insurance shall be determined to have suffered from a work-related injury. For those who have purchased work-related injury insurance, the expenses for treatment of the injury will be paid according to the regulations. For those who have not, expenses shall be borne by the employing entity according to legal standards. The expenses incurred by the department in charge of giving financial subsidies shall be subsidized by the finance authority at the same level.

Third, we will solve the problem of insufficient protective gear. The grant money for community prevention and control work should be properly used in accordance with the regulations to improve working conditions for urban and rural community workers on the frontline. These workers should be equipped with masks, hazmat suits, disinfectants, non-contact thermometers and other protective equipment.

Fourth, we will resolutely relieve the burden on community workers in terms of formalism and bureaucracy. The notice clearly requests that authorities at different levels should avoid assigning repetitive tasks or asking workers to fill out repetitive forms. Except for the CPC Central Committee and State Council's clear requests, in principle, other authorities are not allowed to assign extra tasks to the community. Except for two documents – the residence certificate and the certificate proving completion of the medical observation period – which are required for community epidemic prevention and control, urban and rural community organizations shall not be required to issue other documents on the grounds of epidemic prevention and control. We will eliminate formalities for formalities' sake and bureaucratism with public supervision. The reported "fake practice" of Kaiyuan Mansion in Cuiyuan Community, Qingshan District, Wuhan, severely damaged the image of the Party and government, and should be resolutely corrected.

Fifth, we will issue policies of praise and honor. The notice requires that we timely commend outstanding community workers who fight the epidemic on the frontline in accordance with the relevant regulations. Those who die in the line of duty will be posthumously named as "national outstanding community workers in urban and rural areas." We will work in accordance with the law to designate those who devote their lives to the containment of the epidemic as martyrs, commend their contributions and give special pensions and preferential treatment to their family members. Thank you.

China Society News:

We learned that after the outbreak, nursing homes in Wuhan generally faced a shortage of nursing staff. Most of the nursing staff members currently on the job have been working continuously for more than 40 days. The overwork and high pressure has left them physically and mentally exhausted. We saw in the notice regarding the improvement of civil service agencies' epidemic prevention and control work, that there was a requirement to increase staffing. How does the Ministry of Civil Affairs implement these requirements to solve this problem? Thank you.

Zhan Chengfu:

I will refer this question to Mr. Yu Jianliang, director of the Department of Elderly Care.

Yu Jianliang:

You may be familiar or unfamiliar with the work of elderly care workers. There are more than 2 million elderly people living in around 40,000 nursing homes across country. However, there are only 370,000 workers, among which only 200,000 are caregivers. Consequentially, their workload is large and the amount of services they must provide is also very large. A nurse has to work around the clock. On average, and a nurse needs to serve around 10 elderly people, many of whom are disabled and suffer from dementia. Therefore, from the perspective of daily life care, a nurse has to take care of meal preparation and personal care, which is a tiring and stressful job. At the same time, we also find that their salaries are not high enough. In fact, before the outbreak, there was already a shortage of nursing care staff across the country.

After the outbreak, some nurses who were on vacation for Spring Festival couldn't return to their posts, which resulted in even fewer nurses. Another reason is that after some nursing homes were quarantined, nurses were required to live in their nursing homes. These nurses have basically been on the job from then on, which has caused an even greater workload than before the epidemic. The situation in Wuhan is even worse. There are currently more than 20,000 elderly people in Wuhan's elderly care institutions, but there are just over 3,000 nursing staff. Coupled with the chance of the nursing staff becoming infected or quarantined, the existing manpower is even more inadequate. There is a serious scarcity of care providers in Wuhan.

After the elderly care institutions were put into lockdown, nurses throughout the country, especially those in Wuhan, have selflessly worked day and night and been highly dedicated. We are very touched by their current status and work ethic, and we salute them for their hard work during this time. In response to the human resource shortages, the Ministry of Civil Affairs has taken the following measures to alleviate the shortage of nurses at nursing homes across the country, especially for Wuhan. 

First, for Wuhan, the Ministry of Civil Affairs has organized and coordinated cross-regional nurse aid. The Ministry of Civil Affairs coordinated and organized 118 staff from three other provinces to come to Wuhan. As for inter-provincial support, Hubei province also organized for 50 nurses from another 4 cities and prefectures to come and support Wuhan. We now have a total of 168 extra nursing staff who have come to our aid. Despite the severity of the epidemic in Wuhan, they quickly came here to work regardless of their own safety and security. We were very moved by their spirit of providing aid without considering the conditions and remuneration.

Second, to solve the most fundamental problems of elderly care, we still have to rely on the strength of the nursing home itself. Nurses who are at home should be encouraged to return to work in a timely manner after they have completed self-quarantine. Nursing homes should start recruiting, training and employing new nurses through various means and channels. Since the epidemic situation in Wuhan is still serious, the Ministry of Civil Affairs has formulated policies and give category-specific and class-specific guidance on how to resume work and accomplish epidemic prevention and control. For counties with a relatively mild epidemic situation, especially those with no confirmed cases, we require that under the unified leadership of the local government and the epidemic prevention and control mechanism, and on the premise of ensuring that prevention and control measures are in place, the original nurses and newly recruited personnel should go to work after being tested and meeting the standards. For medium-risk and high-risk areas, a 14-day quarantine should be implemented in accordance with the relevant epidemic prevention and control standards. If the nurses are confirmed to have no infection or symptoms after their quarantine, they can go to work. This will relieve the shortage of nurses. Thank you.

Thecover.cn: 

We know the epidemic has affected people's daily lives and disadvantaged groups in particular are facing more difficulties. What has the ministry done in providing the basic life support to the latter? Thank you.

Zhan Chengfu:

Mr. Liu will answer this question.

Liu Xitang:

Thanks for the care you are showing for disadvantaged groups. As you mentioned just now, everyone has been affected by the epidemic and the disadvantaged groups are facing even more difficulties. We learn that the living costs of the people in difficulties have increased since the epidemic outbreak and protective items have been in short supply. Also, some extremely poor people living at home need special care. On Jan. 29, the Ministry of Civil Affairs issued a notice to make arrangements for poor people to receive special basic life support. A series of measures have been introduced, such as simplifying the relief process, relaxing restrictions on applications for temporary assistance based on hukou (permanent residence) when people in dire need are staying in other locations, and implementing the policy of caring for the people who live at home in extreme poverty. Local governments have been doing a good job in this aspect and have achieved some significant results. 

Recently, with the further development of the epidemic, the situation has changed for people in difficulties in terms of their number and the level of hardship. For example, those migrant workers and flexible-hours employees, who can't go out to work right now, have seen their income reduced, making life more troubled. Also, tight traffic controls have led to the stranding of many members of the floating population. People who can't take care of themselves are left alone when their domestic helpers are isolated. The Central Leading Group for COVID-19 Prevention and Control has issued documents to make arrangements to solve these problems. Five measures have been undertaken:

First, the central authorities have demanded all-out efforts to ensure subsidies are paid in full. By the end of 2019, there were 43.17 million urban and rural recipients of subsistence allowances and 4.69 million in extreme poverty nationwide. Interim relief was carried out to help a total of 9.18 million people last year. We'll make sure the relief funds are paid out on time to these people. Other subsidies, like subsistence allowances for orphans and two subsidies for the disabled also need to be paid in a timely way. For some regions severely affected by the epidemic, the living allowance will be increased. For example, Hubei province has increased the relief fund since Feb. 20 with urban low-income people receiving 500 yuan a month and their rural counterparts 300 yuan a month. Measures have also been taken in other provinces.

Second, we must ensure that all those entitled to social security are covered. Some people living in difficulty, such as those who live above the poverty line, are unable to either go to work or to get flexible jobs during the epidemic. As a result, they may see their income fall below the minimum living standard and thus qualify to receive a subsistence allowance. If that happens, we must ensure that they are all covered by subsistence allowance welfare in a timely manner. Meanwhile, we should suspend the work of removing people from the list of those eligible for subsistence allowances in regions severely affected by the epidemic. During this period, our priority is ensuring the stability of the subsistence allowance recipients. We should help strengthen their ability to withstand financial risks, and postpone conducting dynamic management towards them until the outbreak is over.

Third, we must step up efforts to carry out temporary assistance to those in need. Recipients of subsistence allowances, as well as people in extreme poverty, low-income households and registered poor households, who are confirmed to be infected with COVID-19, must be given temporary assistance in a timely manner in accordance with the regulations. On some occasions, more assistance will be provided when deemed necessary. Also, temporary assistance should be given to poor families whose breadwinners are quarantined for treatment. Apart from the support to be provided to the individuals and families previously mentioned, we should also strengthen temporary assistance to families with members that have died because of COVID-19.

Fourth, we should provide social assistance to non-natives who are stranded because of the epidemic. We will take two main approaches. First, is to assist with physical goods. We will provide temporary accommodation, food and warm clothing to those in need. Second, is to offer cash assistance to those facing temporary financial difficulties who can neither find job due to the outbreak nor get any family support. As we all know, relevant channels have already been opened in Wuhan for people in need to access cash assistance of 300 yuan daily. 

Fifth, we should provide basic care services to those in need. Currently, the central authorities have demanded institutions and personnel in charge of quarantine or treatment to collect information on the elderly, people with disabilities and minors who are left at home without care while their guardians are quarantined or receiving treatment for COVID-19. Such information should be reported immediately to the relevant communities or local civil authorities, and special personnel should be assigned to look after them in a timely manner. In the meantime, the central authorities have demanded the civil authorities and community workers keep regular contact, pay more visits and offer timely assistance to elderly people with no family, abandoned orphans, left-behind children and elderly, as well as other disadvantaged people including the severely ill or disabled who are in isolation at home because of the epidemic. Thank you.

Yicai:

Charitable donations attracted much attention during the epidemic. We found that certain problems involving this subject, such as difficulty in making a donation and the allocation of donated materials, became a matter of concern for the general public. I would like to know the Ministry of Civil Affairs' opinion on these problems. Are there solutions to make the relevant working mechanisms better meet people's needs? Thank you.

Zhan Chengfu:

I want to say four things about this issue. First, in this epidemic, the broad masses of the people have shown great enthusiasm and support for charity. As of 24:00, March 8, the charitable organizations at all levels and the Red Cross Society of China (RCSC) branches had received donations of 29.29 billion yuan, and about 522 million items of anti-epidemic materials. So far, a total of about 23.98 billion yuan and about 466 million items of donated materials have been distributed. This shows the charitable enthusiasm of the people.

Second, charitable organizations link donators with recipients.. Since the outbreak, all sorts of charitable organizations at all levels have undertaken a great amount of work to pool the strengths of society, and joined the efforts of the Party and government authorities to create a powerful joint force for combating the epidemic. 

Third, we can see that the operation capabilities of charitable organizations in response to the epidemic still need improving, especially when it comes to the issues which attracted public attention a short time ago, such as slow allocation of donated funds, imprecise allocation of donated materials, and slow, incomplete and opaque information disclosures. There are laws regulating relevant issues. However, there is still some way to go before charitable organizations consciously and fully abide by them.

Fourth, it has been shown in the epidemic prevention and control work that the government's ability to regulate charitable organizations needs further improvement. After certain problems emerged, the Ministry of Civil Affairs, as the regulator of charitable organizations, responded in a timely way. We dispatched working groups, drafted relevant documents, issued notices to charitable organizations, including the RCSC, accepted public supervision, and quickly achieved improvements in the relevant work procedures, thus turning around the situation caused by the previous problems. 

We will draw lessons from our response to the epidemic in order to improve our governance capacity for charity work in handling major public health events and serious catastrophic events. This is a big task and together we will find the solution. Thank you. 

Hu Kaihong:

We have limited time, so we can only accept two more questions. 

China Daily:

A considerable number of urban and rural community-level workers, committed and dedicated to prevention and control work in regard to COVID-19, played an effective role in containing the epidemic nationwide. Therefore, what targeted measures will be adopted to show our concern for those people? Thank you.

Chen Yueliang:

Thank you for your concern about this particular issue. "The notice on complete implementation regarding the concern and care for the community-level workers involved in the anti-epidemic frontline in both urban and rural areas" issued recently clarifies the central authorities' support and addresses concerns relating to these workers. In the next phase, the Ministry of Civil Affairs (MCA) will be accountable for playing its part in fully implementing the Notice.

First, it is important to develop stronger duty-bound awareness. The MCA has issued a notice which stipulates the responsibilities of local corresponding authorities involved in community governance and in organizing teams to provide community-level services in both urban and rural areas. While setting out specific measures in implementing the Notice, localities are required to draw up standardized work subsidies allocated in a precise way to the workers engaged in preventing and controlling the epidemic from spreading in various communities. 

Second, there is a need to enhance publicity. We will use multiple publicity approaches, such as, media reports, press releases and social media platforms to promulgate both the significance and specifications of the Notice and share successful experience and measures in implementing the Notice among localities nationwide. We will create a strong publicity atmosphere to help implement the measures that provide support and care for community-level workers.

Third, it is necessary to launch special programs. We will step up our efforts to coordinate with the various authorities concerned to reward outstanding community-level workers involved in the epidemic prevention and control from both urban and rural areas. And we will also initiate a program to elect the best-performing community-level workers with their contribution being reckoned as models of virtue across the country.

Fourth, continuity in implementing the Notice is equally important. We will join hands with other departments to study various policies targeted at community-level personnel, guide localities to gradually refine the professional system, rankings and remunerations for those people and continue to improve the mechanism focusing on fostering, evaluating, promoting, utilizing and rewarding the people involved. In doing so, the workers at community level can continue to improve their working competence.

Fifth, it is very important to show love and care to community-level workers through philanthropic programs. The MCA will cooperate with a number of philanthropic foundations, such as, Tencent Foundation, to launch the program "Join hands in the fight against the epidemic—actions to ensure love and care to volunteers, community workers, social workers and staff from elderly nursing homes in Hubei province."

Sixth, we have a responsibility to strengthen psychological consultations. The MCA has coordinated with social workers and the organizations involved in providing psychological consultation to community-level workers. The mental health services are also designated to alleviate the pressure of those workers when the epidemic ends. Alternative working schedules and compensatory time off will be adopted for community-level workers involved in epidemic prevention and control to have enough rest.

CRNTT:

What difficulties have nursing homes faced when dealing with the prevention and control of the epidemic? What measures has the Ministry of Civil Affairs taken to help solve these difficulties? How will you effectively help the nursing homes to follow government guidelines on further improving the epidemic containment work at civil affairs service institutions? Thank you. 

Yu Jianliang: 

I will answer your questions. Nursing homes are enclosed and relatively independent facilities where people live in a communal setting, usually with two or more people sharing the same room. There is also frequent contact between the elderly and the nursing staff. As some of them are disabled or suffer from dementia, so care services are required 24 hours per day. It is difficult to avoid body contact in providing such service. And nursing staff serve many elderly people during their shift.

The old people at nursing homes are usually older and weak, with many of them having underlying chronic diseases. This factor makes some of them more susceptible to infections, and once they are infected, they face higher risks of cross infection and complications. Therefore, the task of avoiding outbreaks at nursing homes is pivotal, requiring special protection and efforts. These factors posed particular difficulties in fighting against the epidemic in the earlier stages at these facilities. 

Regarding these problems, the Ministry of Civil Affairs has taken a series of measures. First, we started closed-door management as soon as we could. Since as early as Jan. 23, we have issued notices requiring nursing homes across the country to implement strict closed-door management. Second, we promptly released a guide for epidemic prevention and control for nursing homes. It sets out specific operational standards for organizational leadership, access management, internal control, protection of the elderly, psychological comfort, and epidemic disposal and disinfection. Depending on the development of the epidemic, we have made timely revisions and updates to the guide -- the first and second editions of which have been released successively. Meanwhile, we released stricter requirements in accordance with the epidemic development situation in Wuhan city and published a guide for epidemic prevention and control, especially for high-risk areas and nursing institutions with the epidemic, on Feb. 25 to provide stricter and more accurate work guidance. Third, we made the overall supervision of nursing institutions in the country. We used the information system to monitor epidemic prevention and control. The Ministry of Civil Affairs has dispatched a working team led by Vice Minister Gao Xiaobing to Wuhan city to provide on-the-spot work guidance to civil service organizations, including nursing institutions. The ministry has held a video conference to offer guidance on epidemic prevention and control work in civil service institutions for the elderly and children. The meeting was attended by the principals of each nursing home via online video, making specific guidance and work requests for nursing homes in epidemic prevention and control. Hence, as far as these measures are concerned, those who strictly follow the guide created by the Ministry of Civil Affairs have achieved zero infection, while those with infections must have loopholes in the implementation.

Just now, the journalist mentioned the notice released by the State Council on further improving epidemic prevention and control work for civil affairs institutions. The notice is of great importance and came in time. Most of all, it included the epidemic prevention and control work into local joint prevention and control mechanism and offered measures to enhance the leading role of nursing homes in epidemic prevention and control. As required in the notice, all local governments must implement it. Besides, it has been fully strengthened to troubleshoot, quarantine, treat patients, make personnel deployment, and especially manage material supply. The notice has played a significant role in epidemic prevention and control of nursing homes in the country. 

Next, we will make efforts in the following aspects as required in the notice. First, we will take precise prevention and control depending on regions and levels and resume services in an orderly manner. As I mentioned, the newly recruited staff and target people will be admitted to nursing institutions based on the outbreak situation in different regions. Second, we will try our best to screen and care for the elderly living outside the institution with special difficulties. We cannot just take care of those inside nursing institutions. We also need to offer services to the left-behind elderly people isolated at home due to the epidemic. That's my answer. Thank you.

Hu Kaihong:

The press conference is hereby concluded. Thanks to the four speakers, and thank you all.

.

Read in Chinese

Speakers:

Li Shuyong, chairwoman of the Hubei Provincial Women's Federation

Yuan Yadong, head of the first and second medical teams sent by Hebei Province to assist Hubei 

Zhong Xiaofeng, head nurse at the ICU of the Wuhan Pulmonary Hospital

Zhang Chunxiang, a sanitation worker at the Wuhan Development Zone

Liao Jun, a journalist with the Hubei Bureau of the Xinhua News Agency

Yang Xue, a volunteer 

Chairperson: 

Shou Xiaoli, Information Bureau of the State Council Information Office 

Date: 

March 8, 2020

Shou Xiaoli:

Good afternoon, everyone. Welcome to the third press conference held in Wuhan by the State Council Information Office. Since the outbreak of COVID-19, many women workers have been at the frontline fighting the virus day and night. They are daughters, wives, mothers and the country's heroes. As we celebrate International Women's Day, we invite some of them to share their stories with you.

Let me introduce them one by one: Zhong Xiaofeng, head nurse of the intensive care unit (ICU) of the Wuhan Pulmonary Hospital; Yuan Yadong, head of the first and second medical teams sent by Hebei Province to assist Hubei and head of the Second Department of Pulmonology at the Second Hospital of Hebei Medical University; Li Shuyong, chairwoman of the Hubei Provincial Women's Federation; Liao Jun, a journalist with the Hubei Bureau of the Xinhua News Agency; Zhang Chunxiang, a sanitation worker at the Wuhan Development Zone; and Yang Xue, a volunteer. 

Now I'd like to invite them to introduce themselves. Let's begin with Ms. Zhong.

Zhong Xiaofeng:

Good afternoon. I am Zhong Xiaofeng, head nurse at the ICU of the Wuhan Pulmonary Hospital, where I have worked for 16 years. After the outbreak of COVID-19, our hospital was among the first batch of designated hospitals to receive infected patients. All of my colleagues have worked tirelessly; I am just one of them. Over the past 60 days, we have fought at the frontline and spared no time taking care of our children and parents. But we never complain because saving more people is our mission and responsibility as doctors and nurses.  

The ICU is the last line of protection. Our work is to race against death and win, so no mistake is allowed. Many patients who were transferred to the ICU were too ill to communicate with us. But after our careful treatment, some of them could interact with us through eye contact or movement, which brought us relief and a great sense of accomplishment. 

Over the past two months, we have also felt the care and support from the whole society. I took a picture of my colleagues pushing a sickbed, which was reported by the media. A singer saw it and wrote the song Together With You. We were very happy and excited when we found out that the inspiration for the song was our photo. We are a well-trained team with strong fighting capacity. My colleagues and I will embrace hope and fight until victory over the epidemic. Thank you.

Shou Xiaoli:

The hospital Zhong works in is among the first batch of designated hospitals. Her ICU department guards the door between life and death. She and her colleagues shoulder big responsibilities to treat and cure patients. They also bear high risk of infection and high work intensity. It is our sincere hope that patients can fully recover and leave the hospitals and the epidemic can end as soon as possible with the efforts of all doctors and nurses like Zhong so that at that time, doctors and nurses can have a break. Thank you, Ms. Zhong. Doctor Yuan, please.  

Yuan Yadong:

Good afternoon. I am Yuan Yadong, a doctor from the Second Hospital of Hebei Medical University and also a member of the Hebei medical team assisting Hubei Province. Since the outbreak of COVID-19, over 40,000 medical workers from across the country have rushed to Hubei to fight the coronavirus epidemic, and I am one of them. On January 26, one day after the Spring Festival, I signed up voluntarily to be part of the medical team answering the call of the Hebei Provincial Government. Although I am nearly 60 years old, I still want to contribute my part as a respiratory physician.

The epidemic is so serious that we know it's a race against time. Every minute and every second matters to save more lives. A total of 150 medical professionals including me took an overnight train and arrived at the Wuchang Railway Station in Wuhan at 4:30 a.m. on January 27. We promptly took over the work of treating infected patients at Wuhan No.7 Hospital, seizing every minute to rescue more people.  

We were in charge of the medical care of four inpatient wards and also most of the work at the ICU and clinical laboratory with relatively high work intensity and risk of infection. We took care of about 190 hospitalized patients daily on average, with more than half of them showing severe symptoms or in critical condition. After 43 days of unremitting efforts, over 250 patients have been cured and discharged from the hospital. 

During the fight against the severe acute respiratory syndrome (SARS) and the flu, as doctors of respiratory and critical medicine, my team and I have always been at the frontline. We embarked on our journey again shortly after the Spring Festival this year. Our only goal under our protective masks and isolation gowns is for every resident in China to be able to breathe freely again. We will continue to be the protectors of health and fulfill the mission with our expertise and dedication. 

Shou Xiaoli:

Doctor Yuan voluntarily signed up and came to Wuhan to fight on the frontline though she is nearly 60 years old. When one group of people or one place is in trouble, others always come to provide support. Thank you, Doctor Yuan and all medical teams rushing to Hubei to help. Please take care of yourselves. Next please Ms. Li.  

Li Shuyong:

Good afternoon. I am Li Shuyong, chairwoman of the Hubei Provincial Women's Federation. This year marks a special International Women's Day. During the still critical period of epidemic containment, medical and community workers are fighting at the frontline. These two groups have the highest percentage of women workers. The Central Committee of the Communist Party of China (CPC) and the State Council showed great concern for their condition. This morning, General Secretary Xi Jinping extended his sincere solicitude to everyone and greetings to women of all ethnic groups and from all walks of life in the country.

Since the outbreak of the epidemic, the All-China Women's Federation promptly implemented the decisions and arrangements of the CPC Central Committee with Comrade Xi at the core and immediately issued urgent mobilization orders to women's federations nationwide to assist Hubei. 

In accordance with the requirements of the Hubei provincial epidemic prevention command and the All-China Women's Federation, over 2,600 full-time women's federation officials and more than 300,000 women's federation executive committee members in Hubei are working at the frontline to fight this epidemic. On behalf of the Hubei Provincial Women's Federation, I would like to express sincere gratitude to the All-China Women's Federation, women's federations in other provinces, autonomous regions and municipalities and all sisters who have shown concern over, helped and donated to Hubei. 

Shou Xiaoli:

Women's federations are designed to represent and uphold women's rights and interests. Li has mobilized local women to fight this epidemic while showing solidarity with female workers coming from other parts of China to assist Hubei. She has not only showed us that women can hold up half the sky, but also helped build the provincial women's federation into a warm shelter for women. Thank you. Now please Ms. Liao, a journalist with the Xinhua News Agency.    

Liao Jun:

Good afternoon. I am Liao Jun, a reporter with the Xinhua News Agency. Since December 30, 2019, I have been working at the frontline. Recently, my colleagues nicknamed me Iron Woman. Actually I think hundreds of reporters working at the frontline of the fight against the epidemic are all Iron Women and Men. We must report this fight against the virus with iron will. 

Like other women, I have multiple identities. I am the only child of my 70-year-old parents; I am the mother of two children and the wife of a military doctor. I am also a reporter with over 20 years of experience and a member of the CPC. I went to university in Wuhan, found a job and settled down in this city. I am familiar with almost every street and alley of this city and feel the same joy and sorrow with other people in this city. All of this reminds me that I must tell the world what this heroic city has experienced.  

Like many other women reporters, I have no time to take care of my family during this period. We actually have no time to even look in the mirror. Our male colleagues say that our faces under the masks are still attractive. Fighting against this epidemic is a war without gunpowder smoke, and I am only one of many ordinary reporters. But we will continue to fulfill our responsibilities and use pens and cameras in hand as weapons to tell the world Chinese stories about the Chinese character and strength during this war. This is our original aspiration and also our mission. 

Shou Xiaoli:

As reporters, they have chosen to stay at their posts and brave the challenge when danger comes. During this war without gunpowder smoke, Liao and her colleagues have conducted interviews on the spot despite risks. I met one reporter friend in Wuhan who told me that it is their mission and responsibility to report on the frontline. Thank you, Liao. Now please Ms. Zhang.  

Zhang Chunxiang:

Good afternoon. I am Zhang Chunxiang, a sanitation worker at the Wuhan Development Zone. On January 28, the company notified us that some people were needed to do cleaning work in the west district of the Union Hospital. I thought to myself that someone needed to undertake this job during the epidemic. I am experienced, and have worked in sanitation for more than 10 years. My children are all grown up, so I have no burdens. So I promptly volunteered. The first group of 15 sanitation workers was sent to the west district of the Union Hospital, and I mainly did the cleaning of the inpatient wards on the eighth floor, including disinfecting, mopping the floor and packing up the garbage.  

I did some mental preparation beforehand. But after arriving in the inpatient wards, to be frank, I was still scared. Nurses trained us on how to protect ourselves and doctors checked our protective suits, goggles, masks, gloves and foot straps several times before we were allowed to enter the wards. Experts from Beijing, Heilongjiang Province and other provinces came to support Wuhan to help treat patients. So as a local person, I should be fearless. Wuhan will get better! Thank you. 

Shou Xiaoli:

Zhang is one of the first 16 sanitation workers who entered the ICU to clean. What stimulated them to put aside hesitations and do this hard and dirty work? I think it must have been the sense of mission as sanitation workers and the faith to protect their hometown as Wuhan locals. Thank you, Ms. Zhang. Now, Ms. Yang, please.  

Yang Xue:

Good afternoon. I am Yang Xue, a youth volunteer in Hongshan District. I mainly drive medical workers to and from hospitals. 

My cousin is a nurse at Tongji Hospital. After the buses suspended operation, I drove her to and from work. During that process, I found that many medical workers remained true to their original aspirations and stood at their posts. It made me think that maybe I could do something. After discussions with my friends Yan Guoxian and Hu Chunxia, we decided to set up a volunteer driver pool called the Guardian Angels. Many people signed up when we announced our initiative.  

We started to think that if we want to do volunteer work well, enthusiasm alone was not enough. We must first ensure the safety of the volunteers, and at the same time ensure that volunteer work can be carried out consistently. So we screened volunteers. Meanwhile, I saw the announcement for recruiting young volunteers in Wuhan. I discussed it with the team and decided to join the Hongshan Youth Commando, which makes it easier to manage and dispatch drivers.

With concerted efforts, we now operate 30 vehicles and transport medical workers and supplies every day. We all think it is meaningful to become volunteers and to protect our city together. Thank you.

Shou Xiaoli:

Yang is from the post-90s generation and also a Wuhan local. As part of the post-70s generation, I used to think they were too young and still children. But after the outbreak of the epidemic, Yang and numerous others born in the 1990s and even 2000s seemed to have grown up overnight. Their actions let us see and believe that the younger generation will surely be able to protect our homeland and future. Thank you, Ms. Yang.

Now let 's take questions from reporters. Today, we will do this via video connections. Before asking questions, please tell us the news organizations you work for. Let us begin. 

China Central Television: 

As a woman working on the frontline, where do you find the courage to face up to all the dangers? Thank you.

Yang Xue: 

Frankly, I was not brave enough at first. My cousin called me and asked if I could give her a ride to work since she lives far away from her hospital. At that time, I was very afraid because to my knowledge, a hospital was a dangerous place. But I realized that she went to work to save people. She wasn't backing down, why should I? So I said yes.

On the way to the hospital, she kept telling me how to protect myself and my family at home, what details should we pay particular attention to and how to disinfect. She also told me she would protect herself well and I shouldn't worry. Her strong sense of commitment and optimism dispelled my worries and gave me courage. That was when my attitude changed. 

Later during a ride to help transport materials, I stopped at a crossroads on Wenzhi Street waiting for the traffic light to turn green. A military van was waiting beside me. When a serviceman in the van saw the logo of our volunteer team--Hongshan Youth Commando, he rolled the window down and gave me a military salute. I was deeply touched. Encouragement from this soldier, one of those who have come here to help us, boosted my morale. As a Wuhan local, I feel obligated to do all I can to help my city get better. These are the stories that helped me find courage. Thank you.

Zhong Xiaofeng: 

I don't think a lot about risks, perhaps because of my sense of responsibility and devotion to my profession. My routine work involves taking care of tuberculosis patients in critical condition in the ICU. Tuberculosis is also an infectious respiratory disease. I don't have time to be afraid; I only focus my attention on the details of how to do a better job. It is my duty to provide quality nursing services to patients and help them conquer the disease while protecting my team members and ensuring efficiency. Thank you.

Liao Jun: 

Fighters, men and women alike, must advance in a bid to curb the epidemic. Listening to people's voices on the ground despite the dangers is our responsibility. Many journalists have headed to the battleground time and again to cover epidemic control efforts. They often say, "We will not back down until this war is over." Xiong Qi, a colleague of mine born in the 1990s, took the first pictures of an isolation area at the Zhongnan Hospital ICU on the eve of the Spring Festival. Xiong said that was the place where he was meant to be. I think this is where our courage lies. Thank you.

Yuan Yadong: 

I'd like to make some remarks too. It is normal to be afraid when facing the epidemic. COVID-19 is a completely new infectious disease and we do not know enough about it. As medical workers, we are courageous enough to confront it. Like SARS, it is a coronavirus infection and a respiratory disease. Most pulmonologists above 40 participated in the treatment of SARS patients and are highly experienced in preventing the spread of and treating infectious diseases. We believe through effective protection we can stay healthy and with scientific methods we can save lives.

Medical workers also need to explore new frontiers. We must continue our research into the unknown to improve our competence. We must be on the ground, do hands-on work in the ward and collect firsthand clinical data to gain experience and become experts in our field. 

China Women's News / Cnwoman.com.cn: 

My question goes to Ms. Li. Since the outbreak, women's federations have taken an active part in epidemic control. Could you please elaborate on the roles they have played? You have been working on the frontline, and please share with us some of your observations. Thank you.

Li Shuyong: 

Thank you for your question. I was deeply impressed by many things I witnessed. First, women's federations have played an important role as a bridge and channel of communication. It is our mission to unite all members to respond to the CPC's call. Since the outbreak, the All-China Women's Federation has called on the China Women's Development Foundation and women's federations at all levels to make cash and in-kind donations to Hubei Province, which amounted to 200 million yuan. Making the most of its extensive contacts, the Hubei Provincial Women's Federation helped send these donations to hospitals to address the special needs of women medical workers in a timely manner. When we learned that pregnant women and women in labor were facing difficulties, we issued the No.37 document concerning this matter with the support of provincial epidemic control authorities. We also launched the 12338 psychological consultation hotline, which offers around-the-clock services to the public. 

We have called on women to protect their family members and help their communities with epidemic control. This morning, we launched a livestream program on family education. Women's federations have worked efficiently and coherently to mobilize members to join the fight against the epidemic. This is indicative of the advantages of our system, which impressed me. 

Second, I have felt the power of women, who hold up half the sky. Our sisters have been working in all sectors since the beginning of the campaign against the epidemic. I saw their footprints in hospitals and communities. Thousands of women volunteers work in both urban and rural areas. They have written a splendid chapter in fighting the epidemic. From outstanding women scientists such as academicians Li Lanjuan, Chen Wei and Qiao Jie to speakers here today to heroes like Xia Sisi, who sacrificed their lives in the line of duty, they have inspired me to forge ahead and live up to my responsibilities. 

Third, I have gained insight into the importance of the family in social governance. We saw a lot of families send sons, wives and sometimes both husbands and wives to the frontline. We also saw women contribute to their families and communities by raising awareness, overseeing the implementation of control measures and getting fully involved in the fight. Neighbors have watched out for and helped each other to tide over the current difficulties. This kind of familial warmth impressed me. A family is the basic unit of a country. A country consists of millions of families. It is a pressing task of women's federations around China to help give full play to the role of the family. Thank you.

Guangming Daily: 

My question goes to Ms. Yuan. As a medical worker who fought against the SARS outbreak, did you feel a lot of pressure when you received this mission? What have you done to prevent medical workers from being infected and bring everyone home safely? Thank you.

Yuan Yadong: 

To be honest, as head of the team, I feel pressure. My personal safety is not the most important thing but the safety of my team is of crucial importance. Every member of my team is someone's family member. Some are sons or daughters, some have just had kids and some have postponed their marriages. Many of them are young people born in the 1980s and 1990s. It is the first time they have faced this type of major emergency and have left home to help Wuhan. So it's my responsibility to bring everyone home safely. They call me Mama Yuan and look to me as a mentor. So it's a lot of pressure. However, I can only turn pressure into motivation and treat prevention of hospital-acquired infection as the work that has to be done in a specific and more detailed manner.

First, in addition to giving medical workers repeated training and posting prevention measures on the wall, we focus more on practices. Medical workers are required to wear protective suits properly and take them off in a proper manner to prevent infection. We have to make sure that all medical workers are checked, monitored and reminded by hospital-acquired infection prevention experts when they enter and exit the ward and during their time in the ward so that no mistakes can happen.

Second, we also work with local hospitals to optimize the procedures for preventing hospital infection. For example, at the entrance of the wards we have set up a buffer zone. We have to strengthen disinfection in places such as the laundry room, the disinfection room, the laboratory medicine department and the rest area for medical workers.

Third, in terms of accommodations, we asked hotels to strengthen their disinfection especially in public areas like corridors and elevators as well as doorknobs. We asked that all team members take their temperature twice a day and report them on a daily basis. I will inquire about their condition if they report any abnormalities and I have become their de facto team doctor. 

We have taken all kinds of factors into consideration and given priority to prevention so as to ensure no personnel are infected. Thank you.

Shou Xiaoli: 

It reminds me of the head of another medical team who read a letter written by a husband to his wife who was sent to the frontline at a press conference a few days ago. The letter expressed the husband's wish for the wife's safe return. I think it is also everyone's wish that all medical workers return home safely. Now the floor is open for more questions. 

Hubei Daily:

Since the outbreak, most people have chosen to stay at home, but sanitation workers and volunteers have chosen to go to the frontline. How did you persuade your families to give you their understanding and support? And what impressed you most during that time? Thank you.

Zhang Chunxiang: 

At the very beginning when I signed up for the job, my husband was worried, because he said that I am vulnerable and could easily be infected at such an advanced age. I told him that hospitals are specialized in protection and that we would wear protective clothing as medical workers do during daily work. As long as we paid enough attention, there would be no problem. My daughter called her father and said, "Daddy, please let mom do whatever she wants to do." So, persuaded by my daughter, my husband finally agreed.

Something that really touched me was one day when I went to the ward to collect garbage and I saw a patient's bedpan was full, so I cleaned it and returned it. The woman expressed her thanks to me. I told her that it was my duty. Then I encouraged her to cooperate with the doctor to cure the disease and so she could get better soon. She nodded. I tried to comfort her and encourage her to gain confidence in fighting the disease. I think my work is very meaningful.

After we finished our work in the hospital, we went to a hotel for 14 days of quarantine. All 15 sanitation workers are now in good condition and we have returned to our own positions. We will continue our daily work and keep our city clean. Thank you.

Yang Xue: 

When I told my mother that I wanted to be a volunteer, she was hesitant. She warned that I would be in contact with a lot of people and could get infected, worried that it was too risky. I explained to her that if I could protect myself in a scientific way, the virus is not invincible. She finally agreed. Her encouragement and support have inspired me a lot during my work.

There are many stories that touch me every day as a volunteer. I'd like to share one of them with you. One day, we received a task from the Hongshan District Committee of the Communist Youth League of China to transfer some medical supplies from Dongxihu District to a mobile cabin hospital in Hongshan. After the mission was made public, 10 vans came to help. While loading the supplies, we found that more vehicles were needed. So we sent out messages on WeChat groups calling for more volunteers. Ten more vans came to help us in a short time. The drivers were all willing to load those goods onto their vans. There were a total of 20 vans that day. I drove to the hospital first and communicated with staff members there about the delivery and other details. Then our team came. When I saw a fleet of vans with their emergency flashers on, I was deeply moved. We all came to support a common goal, hoping that Wuhan can get better soon. That's what we are doing now. I feel so proud to be involved in the volunteer work and fighting together with other people. Thank you.

Southern Metropolis Daily:

During the epidemic, many nurses have left deep impressions on us as young nurses post vlogs to record their experience. Nursing is crucial in the medical treatment of COVID-19. My question is: As a head nurse in an ICU, how do you lead your team to provide scientific care for critical patients? And do you have any stories for us?

Zhong Xiaofeng:

Thank you for your questions. The ICU stands between life and death. We face higher risks and a bigger workload compared to those in other wards. So we attach great importance to cooperation and building a team culture. In our daily work, we focus on practicing nursing skills and collaborative operations. For example, I can perform technically demanding operations like plasma exchange and the use of Extracorporeal Membrane Oxygenation by myself. However, there are some activities that definitely need the cooperation of other colleagues including the rescuing and transporting of patients, turning them over in bed and even cleaning up waste. Each procedure is of vital importance to the patients and must be carried out carefully. 

One particular day I was impressed when a young nurse came out of the ward after taking off her protective clothing. She was sweating and crying as she squatted down. I thought she was tired or unwell, so I immediately went over to comfort her. The nurse told me she was so happy to see a patient that she had been taken care of for over a month regain consciousness. He actually shed tears when the nurse spoke to him. This made her feel all her efforts were worth it.

In addition, colleagues who finish work used to leave for home directly. But now, those who complete their tasks earlier wait outside the ward. They want to see all members come out safely after work, which they feel is reassuring to them. Thank you.

Hong Kong Ta Kung Wen Wei Media Group:

Ms. Liao, you have been working as a reporter on the frontline of the battle against the epidemic for over two months. You immediately rushed to Huoshenshan Hospital, temporary treatment centers and many other places where the battle was taking place. Were you afraid? Also, could you share with us some stories from people you have interviewed that are particularly touching to you?

Liao Jun:

Thank you. It's the first time that I'm the interviewee. Actually, I would be lying if I said that I was not afraid at all. I've been to many places where patients were treated, such as Huoshenshan Hospital and temporary treatment centers, as well as communities and isolation sites. At the beginning, when I was not fully aware of the gravity of the epidemic, I interviewed some people without taking any preventive or protective measures. Some of those interviewees were later confirmed infected. In hindsight, I felt a bit worried about this. Later on, I heard that some of my friends were infected as well. That was the first time in my life that I prepared myself for death to come at any moment.

Regardless of this, in these months, I have been moved more than at any other time in my life by countless people and what they did. I was moved by the hard work and contribution of unsung Wuhan citizens, by the timely assistance of health workers from all over the country, like Doctor Yuan, and by Ms. Zhong, Ms. Zhang, Ms. Yang and all the other people who are still holding on at their positions in Wuhan for the sake of the general good. It is their forbearance, view of the big picture and persistence that support the whole city.

One of the most touching stories was of a young couple. The wife, Wang Xiaoting, is a doctor at a designated hospital in Wuhan. She hadn't been home since she began treating COVID-17 patients on January 23. For fear of infecting her family, she stayed in a hotel near the hospital. Since her shift was often at midnight, she had to walk to work in the dark. Concerned about Wang's safety, her husband insisted on escorting her, but she was worried she would leave the virus in their car if she let him drive her. They finally reached a compromise: Whenever she walked to work, her husband would drive behind her with the car lights on. They did this no matter how bad the weather or how late it was. I believe they embody the persistence of the people of Wuhan. I put this story in my article and carry it in my heart. I will cherish such stories forever. Thank you.

Shou Xiaoli:

Thank you for sharing, Ms. Liao. We still have time for one last question. 

People's Daily: 

As frontline fighters since the battle against COVID-19 began, what do you want to express most today? Thank you.

Shou Xiaoli:

Everyone may have something to share. 

Zhong Xiaofeng:

We are eager to see the epidemic end soon. I will hold on with my team until the last minute and wish everyone good health. I want to hug my family and kiss my daughter when the epidemic is over. Thank you.

Yuan Yadong: 

During this war without gunpowder smoke, medical workers race against time and fight against the virus to improve the rate of recovery, reduce mortality and prevent patients with slight symptoms from getting worse. Some of them even sacrificed their lives to secure the safety of the many. This spirit of saving lives and love is very remarkable and touching.

I want to say, "Let's fight together, win together so we can beat COVID-19 and return home triumphant as soon as possible." Thank you.

Shou Xiaoli: 

Thank you, Ms. Yuan. Thank you all. Thank you for your hard work. 

Li Shuyong:

This epidemic is a big test for China. The difficulties that the country has suffered have brought out women's patriotic feelings. With the love from families, life is blooming. We are expecting the end of the epidemic when sisters take their masks off and smile like cherry blossoms. I'm looking forward to seeing sisters who are strong but gentle inspire people to be more confident and powerful. Thank you.

Liao Jun: 

I want to have breakfast out. I want my children to go back to school soon. And I'm eager to see Wuhan start running again as before. However, the prevention and control work in the city is still critical and intense, needing a lot of input. Women reporters are working alongside their male peers to cover epidemic control efforts. One of the two team leaders on the frontline and head of the Xinhua News Agency's Hubei Bureau is a woman. I'm just one of the journalists. The battle is moving forward and I will keep working with my colleagues until the epidemic is over. Thank you.

Zhang Chunxiang:

After cleaning the hospital, we continued to clean at the hotel where we were quarantined. Many netizens liked the video the hotel manager posted online. During such a special period, we don't want to bother anybody. I just want to say: Please think more about others, help more and hold on. Wuhan will get better. Thank you.

Yang Xue:

Many other volunteers work harder than I do. They are doing their best working in every corner of the city. They buy and deliver vegetables for community residents, bring patients to quarantine sites or do psychological counseling.

To every volunteer: Please protect yourself and let's work together. I hope more young people will join us and stand with our city for a better future. Hold on, Wuhan. Hold on, the people of Wuhan.

Shou Xiaoli: 

Thank you. The Wuhan accent sounds beautiful. The conference is about to conclude. The epidemic is not over yet and we will not celebrate until a comprehensive victory is confirmed. Our speakers will go straight back to work after this conference. I believe you were touched by these women who are as excellent as their male peers. 

Every single person has become a fighter in this battle and they have done their best to win, not for individual purposes, but for the city and the country's good. At the same time, no one is alone; they are supported by the whole nation.

We believe victory will come if we work together. This is the end for today. Thank you all. Goodbye.

.

Read in Chinese

Speakers:

Ding Xiangyang, member of the Central Guidance Team in Hubei, and deputy secretary-general of the State Council.

Wang Jiangping, member of the Central Guidance Team in Hubei, and vice minister of industry and information technology.

Yu Yanhong, member of the Central Guidance Team in Hubei, member of the Leading Party Members' Group of the National Health Commission, and secretary of the Leading Party Members' Group of the National Administration of Traditional Chinese Medicine.

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office of China.

Date:

March 6, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media, good afternoon. Welcome to this press conference held by the State Council Information Office in Wuhan, Hubei. Today, we have invited three members of the Central Guidance Team in Hubei to brief you: Mr. Ding Xiangyang, deputy secretary-general of the State Council; Mr. Wang Jiangping, vice minister of industry and information technology; and Ms. Yu Yanhong, member of the Leading Party Members' Group of the National Health Commission, and secretary of the Leading Party Members' Group of the National Administration of Traditional Chinese Medicine. They will brief you about the progress of COVID-19 control and treatment, as well as answer your questions.

First, I'll give the floor to Mr. Ding.

Ding Xiangyang:

Friends from the media, good afternoon. It has been 15 days since we last met at a press conference on Feb. 20.

During recent days, medical workers, police officers and community leaders have continued to act on the important instructions issued by General Secretary Xi Jinping and the unified plans made by the Central Committee of the Communist Party of China (CPC), fighting bravely at the frontline against the COVID-19. Together with all Chinese people, they have stood united, helping each other, and working tenaciously to win the battle against the epidemic. Meanwhile, media personnel, regardless of the obvious risks, have recorded many extraordinary stories happening here in Wuhan. On behalf of the Central Guidance Team in Hubei and Vice Premier Sun Chunlan, leader of the guidance team, I would like to express my sincere respect and gratitude to all of you.

General Secretary Xi Jinping has personally led, directed and organized China's epidemic prevention and control. The World Health Organization (WHO) said that China has rolled out perhaps the most ambitious, agile and aggressive disease containment effort in history, changing the course of a rapidly escalating and deadly epidemic, and delaying hundreds of thousands of COVID-19 cases in the country. The reduction of COVID-19 cases in China has also played a significant role in protecting the global community, creating a stronger first line of defense against international spread, and gaining invaluable time for the global response.

Under the leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the Central Guidance Team led by Vice Premier Sun Chunlan has guided the epidemic prevention and control work in Wuhan in accordance with the arrangements made by the leading group of the CPC Central Committee on the prevention and control of the epidemic, and the requirements issued by Premier Li Keqiang and Comrade Wang Huning. We have implemented the general guidelines for China's epidemic control efforts, which call for confidence, unity, a science-based approach and a targeted response, and have also taken steps to deliver a good job on prevention, control, and treatment.

We issued a call for all-out efforts to hospitalize and treat all confirmed patients, and conduct thorough tests of all suspected ones, as well as anyone who has come into close contact with either group during the incubation period.

We have continuously prioritized medical treatment of COVID-19 patients, and do everything possible to cure them. Vice Premier Sun Chunlan convened several meetings of experts to explore the course of epidemic treatment, and clarified the principles of treating those infected in dedicated facilities by senior medical professionals drawn from all over the country, and with all necessary resources. We have also conducting categorized management for patients. She also called for strengthened the course of treatment combining traditional Chinese and Western medicine, and urged that all the medical staff involved in medical treatment work should focus on early intervention to prevent mild symptoms from developing into severe ones. Medical consultation and inspection have been carried out by multidisciplinary experts to strengthen the treatment and care of severely-ill patients. By promptly summing up the experience gained in clinical treatment, we have been able to improve the medical treatment standards and have released the seventh edition of the national diagnosis and treatment plan for the disease. In particular, we formulated management standards for mild and common cases, as well as the treatment schemes for severe and critically-ill patients, to ensure the creation of and adoption of unified treatment standards. As a result, the daily number of patients discharged after recovery in Wuhan now reaches 1,000 to 2,000, which proves the effectiveness of our treatment work.

We also conducted timely psychological intervention to help COVID-19 patients and their families. Meanwhile, we have also made greater efforts to ensure the needs of the patients of other diseases in consulting relevant doctors. Strict prevention measures were taken to wipe out the possibility of COVID-19 infection and spread among special groups, such as those housed in prisons, nursing homes and child welfare institutes. Also, we strengthened community management to create communities, units, cities and prefectures free from epidemic.

Media friends, as the Chinese saying goes, the last leg of a journey marks the halfway point. At present, Hubei province and Wuhan city still face an arduous task in epidemic prevention and control. In this regard, we must rise to the challenge and work hard to overcome all difficulties in order to secure a victory.

We believe that under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, there will be no mission impossible for us. Thank you.

Xi Yanchun:

Mr. Ding Xiangyang, thank you for your introduction. Next, we will move on to questions. Please ask questions via the video link, first identifying your news outlet. Now, the floor is open for questions.

China Arab TV:

Since the outbreak of COVID-19, China has made arduous efforts to contain the spread of the infection within the epicenter of Wuhan as much as possible. China has been doing its part in the battle against COVID-19 for both people in China and the rest of the world. Although this epidemic has posed a threat to everyone, we still have very limited knowledge about it. As China has gained a lot of experience in COVID-19 prevention and control, what information and suggestions can China share with other countries currently experiencing an outbreak? Will China provide assistance to these countries? Thank you.

Xi Yanchun:

Mr. Ding will be answering your question.

Ding Xiangyang:

Thank you for your question. In view of the seriousness of the epidemic, China has established a prevention and control system at the central level. General Secretary Xi Jinping has been personally commanding the fight against the outbreak. A central leading group on the epidemic, as well as the Joint Prevention and Control Mechanism of the State Council, has been established. Meanwhile, the Central Guidance Team was also sent to Wuhan. A total of 11 ministerial-level officials have been working on the frontline to help guide and coordinate the containment efforts in Hubei province and the city of Wuhan. This is the design of our emergency response system.

In terms of the measures taken, I can highlight five aspects. First, we have adopted a well-coordinated and unified commanding system that directly links the central and local governments. Second, we act in an open and transparent manner, timely releasing information on the prevention and control work. We are also subject to public supervision and work to promote communication with the whole society. Third, our prevention and control efforts are based on scientific principles. Fourth, we focused on tackling major problems, and made a concerted effort to ensure effective prevention and control, medical treatment, and supplies of materials. Fifth, we mobilized the general public and launched a "people's war" to jointly fight against the epidemic.

The reason why the Communist Party of China (CPC) Central Committee stresses unified command, coordination and arrangements lies in that China has a large population of 1.4 billion people, and once an epidemic spreads, it brings a huge impact. Since outbreaks have occurred in several countries recently, it has been found that any city, including Wuhan, can't deal with the epidemic alone.

I will list some examples. Since the outbreak, Hubei province has received over five million medical protective suits. I remember that the original output of protective suits at a Hubei-based large enterprise was only 1,000-2,000 per day. Over nine million N95 masks have also been allocated to the province. It's impossible for any region to produce these supplies by itself.

At the peak of the outbreak, we saw from the news that over 3,000 new patient beds were needed in Wuhan every day. This would be a great challenge for any city in the world. Initially, there were only two infectious disease hospitals in Wuhan, with no more than 1,000 beds between them. To date, more than 49,000 confirmed cases have been reported. The shortage of hospital beds was once the most urgent issue. We worked on upgrading existing hospitals and building Fangcang shelter hospitals at the same time, increasing our beds by over 3,000 per day. There is now a total of 86 designated hospitals and 16 Fangcang shelter hospitals with over 60,000 beds between them, meeting demand. A hospital with 1,000 beds would be considered a large hospital, which means we have achieved a bed capacity of 60 tertiary hospitals within one month. What a hard and marvelous project! Without the unified leadership of the CPC Central Committee and the support from all parts of the country, this would have been an impossible task.

We promptly released prevention and control information so that the society could see the truth. After the outbreak in Wuhan and Hubei, a large number of journalists, including you who are present here today, went to hospitals and communities to objectively report to the world about China's fight against the epidemic, risking your lives in the process. Thank you for your impartial reporting.

In terms of science-based prevention and control, as you have seen throughout the process, we have complied and released guidelines, work specifications and treatment standards for the epidemic at different stages. We also made a number of achievements in scientific research.

The prevention and control practices prove that it is impossible to achieve success without the participation and cooperation of the people. Therefore, we also refer to it as a "people's war" against the epidemic.

Ding Xiangyang:

Some people questioned whether it is necessary for so many people in Wuhan to stay at home and within their communities.

Preventing and controlling an epidemic is like fighting a battle. The requirement that people stay at home during the outbreak is like when a government requires civilians to take cover in underground shelters when two armies fight against each other. Doing so will definitely cause inconvenience and discomfort, but failure to do so could mean casualties. The requirement to take cover in shelters and carry out temporary quarantine at home can effectively cut off transmission channels, reducing infection and mortality.

We are very pleased and proud to see how the great people of Wuhan have acted. Everyone is making their contribution to the prevention and control of the epidemic in their own way and by their own efforts. Here, I would like to thank you all. Hold on a little longer, and victory will be ours.

Vice Premier Sun Chunlan, also head of the Central Guidance Team, made random inspections at several communities in Wuhan yesterday, on which you have already seen short videos online. In response to public complaints about the formalism and inadequacy of service management, she gave immediate instructions, requiring the Central Guidance Team and the local government to conduct an in-depth investigation. She convened a special meeting attended by the leaders of Wuhan municipal Party committee and Wuhan municipal government yesterday afternoon. She urged them to take practical measures to solve the problems immediately, be true to the facts, and make no effort to conceal problems.

It is necessary and urgent to strengthen communication and cooperation among countries in face of the epidemic. According to information provided by the Ministry of Foreign Affairs, China has already offered test reagents to Pakistan, Japan and the African Union, and shared treatment plans with many other countries. The Red Cross Society of China and relevant companies, as far as we know, have also provided test reagents to Iran and some African countries, and sent volunteer expert teams to Iran. In the next step, we will continue cooperation efforts in various forms according to the trend of the epidemic, and provide support within our capacity based on their needs. Thank you.

MASTV:

Does China now have enough medical equipment to handle the COVID-19 outbreak, particularly in Hubei province? Thank you.

Wang Jiangping:

Thank you for your question. The epidemic has been our focus, and ensuring medical supplies for Hubei province is our top priority. General Secretary Xi Jinping attaches great importance to the prevention and control of the epidemic and has given multiple instructions on strengthening the supply of medical resources. Premier Li Keqiang has also made arrangements on several occasions. Under the direct leadership of Vice Premier Sun Chunlan of the State Council, together with the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC) and relevant authorities of provinces and cities, the material support group has been working around the clock to gather supplies and accurately allocate daily resources to optimize their utilization, doing our best to ensure supplies. With the joint efforts of all involved, we have made progress in the following three aspects concerning provision of supplies in Hubei province. First, we have gone from acute shortage to sufficient supplies, and are now able to meet the demand for protective equipment. Second, concerning important medicine used for treatment, the situation has shifted from hospitals finding ways to purchase it themselves, to the government providing inventory that can be consumed for more than 10 days. Third, the supply of medical treatment equipment has moved from a severe shortage to sufficient provision. At present, designated hospitals in Wuhan and the surrounding area have been equipped with various advanced treatment equipment according to the number of admissions. In addition, there are enough disinfection products to ensure the market supply. These changes can be credited to the strong leadership of the CPC Central Committee and the State Council, the ability to coordinate and mobilize the country, and inter-agency cooperation. The full support of provinces, regions and cities, and key enterprises throughout the country, as well as the selfless dedication of all workers, especially medical staff, have all made great contributions.

The production capacity of medical supplies has jumped since the resumption of production and work and the expansion of productivity. For example, the daily production capacity of protective suits has increased from less than 20,000 to 500,000; N95 masks from 200,000 pieces to 1.6 million; and ordinary masks to as many as 100 million. The production capacities of other necessary commodities and medical treatment equipment have also increased substantially. By March 5, more than 5.3 million protective suits and ten million pieces of N95 face masks had been distributed to Hubei province. So far, categorized in 38 items, a total of 65,000 pieces of medical treatment gear, including, 22,000 respiratory therapy devices, 67 advanced and expensive extracorporeal membrane oxygenators, and 15,000 electrocardiogram monitors, have been sent to the province via different channels. The supplies also include 699 additional negative pressure isolation ambulances.

By giving full play to our manufacturing industry, we have expanded the production capacity of medical supplies within a short period of time to meet the huge growth of demand since the outbreak of the epidemic. Recently, we noted that WHO Director-General Tedros Adhanom Ghebreyesus called on all manufacturers across the world to urgently increase the supplies of medical gear for preventive and protective uses to meet global demand amid the epidemic outbreak. With the situation in China gradually improving, we are willing to support other countries that need medical gear based on our own capacity. Chinese manufacturers involved in the production of medical equipment, protective gear and pharmaceuticals are encouraged to respond to the overseas demands to contribute to the fight against the global pandemic. Thank you.

CNN:

We have noticed the Chinese government has strongly emphasized the role of traditional Chinese medicine (TCM) in the official medical plans, official statements and even state media reports, indicating the obvious curative effects of various kinds of TCM and even patients being cured exclusively with TCM medication. Meanwhile, at a news conference in Beijing last week, experts from the World Health Organization noted that so far, the only medicine shown to be potentially effective against the COVID-19 is a drug from the U.S. called Remdesivir. My question is whether China's position and views on traditional Chinese medicine contradict those of the WHO. What is China's scientific basis? Are the cases that have been improved or been discharged from the hospital with TCM treatment a result of self-healing? Thank you.

Yu Yanhong:

Thank you very much for your interest in the role of traditional Chinese medicine in the prevention and control of this epidemic. China's diagnosis and treatment plan is a combination of the long-term wisdom of TCM and Western medicine techniques in fighting COVID-19. TCM has an important position in the treatment plan. This is determined by the Chinese health policy of attaching equal importance to both traditional and Western medicines and the recognized curative effect of Chinese medicine. Your question focuses on the curative effect, and I will talk about it from three aspects.

First, TCM has its own theory and practice in preventing and treating epidemic disease. In view of the lack of effective drugs and vaccines in the early prevention and treatment of the COVID-19, we utilized the practical experience and technical methods of TCM in the medication given to patients, exerted the role of TCM in adjusting and enhancing bodily immunity which stimulated the ability of disease resistance and rehabilitation. TCM proved to be an effective method. In the fight against SARS and Influenza A in recent years, the role of TCM has been proved. As TCM advocates often say,"Healthy qi stored in, evil kept away."

Second, facts shows that a large number of patients have been cured and discharged, which proves that the combination of traditional Chinese and Western medicines has remarkable effect. More than 50,000 patients have been discharged, most of whom were treated withTCM. The team of experts confirmed that the combination of traditional Chinese and Western medicines, compared with the simple use of either one alone, can quickly lower a fever,and treat the cough, fatigue and other symptoms, shorten the length of hospital stay, improve the negative rate of nucleic acid test, effectively reduce the worsening development from light and ordinary symptoms to severe or to critical conditions, improve the overall cure rate and reduce the death rate.

I will give you a couple of examples. In regard to COVID-19 patients with mild and ordinary symptoms, a randomized controlled open label trial of 452 patients showed that, in order to increase the turning-negative rate in the nucleic acid test and reduce symptoms, the method of combining TCM and Western medicine is obviously superior to the method of using the latter alone. Another clinical cohort study of 500 patients showed that combining TCM and Western medicine led to their lung CT scans revealing a better condition, and no one in this group developed into severely ill cases. For severely-ill patients, a controlled clinical trial with 75 of them also showed that, by comparing those two methods, on average using TCM shortened the time of viral nucleic acid turning negative and discharge by three days. For critically ill cases, TCM and Western medicine experts conducted joint consultations and syndrome differentiation. And they found that TCM is highly effective in increasing blood oxygen saturation and lowering the incidence of a cytokine storm. The National Health Commission and the National Administration of TCM set up 12 expert groups guiding treatments for critical cases. This is our TCM and Western medicine jointly guiding treatments solution. By further combing the two, it increases the recovery rate and lowers the mortality rate.

Third, as just mentioned, you noticed that many patients were treated with TCM only. Indeed, we drew a preliminary summary for nearly 100 discharged patients with TCM treatment. Many of them had been critically-ill and mainly used the TCM for recovery.

And the relevant cases' study and summarizing work is underway.

During the work of epidemic prevention and control, General Secretary Xi Jinping has always emphasized that we should attach equal emphasis on TCM and Western medicine, seeking ways to combine use of both in treatment of COVID-19 patients. We would love to share the "Chinese experience" and "Chinese treatment plans" of COVID-19, so that more countries could get to know and understand TCM and make use of it. In China, when the epidemic spread, we used TCM for the patients and their symptom got relieved quickly. This enhanced more people's confidence and courage to fight against the disease. Thank you for your question.

People's Daily:

We have learned that many medical workers have been infected by the virus since the outbreak. What are the reasons? In addition, what measures have been taken to protect the safety of medical workers on the frontline? Thank you.

Xi Yanchun:

Mr. Ding will answer this question.

Ding Xiangyang:

Thank you for the question. More than 3,000 medical workers in Hubei province were infected in the early days of the outbreak, mainly in January and before. Among these, 40 percent were infected in hospitals and 60 percent within communities. All those infected were local medical workers in Hubei, mostly from departments of non-infectious diseases. As for the reason, I think it was because of limited awareness of the virus and the lack of control and prevention knowledge. In the battle against the epidemic, some medical workers sacrificed their lives due to the infection, and we all feel sorry and sad for them.

General Secretary Xi Jinping attached great importance to the protection and care for medical workers. He made important instructions many times, sending care of the Party Central Committee towards the medical personnel who are working on the frontline of epidemic prevention and control.

After medical staff were found to be infected, we immediately strengthened their protection, worked out technical guidelines for infection prevention and specifications of prevention and control, and carried out supervision, inspection and training of all medical staff. Medics cannot work without training. We have also strengthened the supply of protective goods and ensured medical staff can take necessary rest in shifts. We all know that medical workers were very busy in the early days of the outbreak and could not get enough rest. Now, we have controlled infections within hospitals as a result of various strengthened measures put in place. According to our statistics, so far, there is no report of infection among the over 40,000 medical workers who came from across the country to support the treatment in Wuhan, Hubei province.

Medical workers are the backbone in the fight against the epidemic. They are working together with the heroic people in Wuhan to protect the city and Hubei province. It is due to the endeavors of the medical workers, who have led the charge against the epidemic and set aside their personal interests, that the epidemic prevention and control in Wuhan and Hubei has been effective. Many of their stories have been reported, and some of them are highly impressive. These include stories of Zhang Dingyu, the president of Wuhan Jinyintan Hospital, who was diagnosed with amyotrophic lateral sclerosis, and of Wu Yaling, a nurse at Huoshenshan Hospital, who bowed in the direction of her hometown three times after receiving news of her mother's death.

There are so many good doctors and nurses. They safeguard lives, heal the wounded and rescue the dying. They have lived up to the spirit of "angels in white" and we entrust them to protect our lives.

One patient wrote the following comment: "Those who say the stars are bright must not have seen the eyes of the medical staff working on the frontline. They gave me hope!"

I would also like to share another impressive stat with you. Among the medical workers sent to Wuhan and Hubei, do you know how many were born after 1990 and 2000? According to our statistics, the answer is more than 12,000, which is one third of the total amount.

During the fight against the epidemic, these young doctors and nurses have taken practical actions and fulfilled their responsibilities, shown their sense of responsibility and proven their value. These young people have grown up to be the backbone of the society, as well as the pride and hope of our country. I'd like to say to them, keep it up!

On behalf of the Central Guidance Team, I would like to express our great respect to all the medical workers on the frontline in their fight against the epidemic. Thank you.

China Daily:

Shutdowns at many enterprises and factories in China during the COVID-19 outbreak have affected supply chains nationally, with some enterprises considering moving their businesses overseas. Do you think that foreign-invested companies have been seriously affected? Thank you.

Xi Yanchun:

Vice Minister Wang Jiangping will answer this question.

Wang Jiangping:

Thank you for your question. To be honest, the epidemic will have a certain impact on China's economic operations in a short term. The CPC Central Committee and the State Council attach great importance to coping with the impact of the epidemic and require the overall coordination of epidemic prevention and control with economic and social development. The central authority has issued a series of policies and measures to promote the resumption of work and productive activities of enterprises, and reduce their burdens in such areas as financing, social security, taxes and fees. It proposes to streamline review and approval process, optimize services, and accurately and steadily promote resumption of work and production, while asking the industries and key links that have a major role in the global supply chain to resume production and supply as soon as possible, in order to maintain the stability of the global supply chain. To achieve this, we closely followed up the impact of the epidemic on the operation of the industrial economy. In terms of industrial sectors, labor-intensive industries such as the textile industry, and electronics, auto and some other sectors relying more heavily on the supply chain, will be affected to a greater degree in the short term. From the perspective of regional impact, the effect on funding in severely affected epidemic areas such as Hubei is relatively large. The epidemic not only directly affects the economic activities of Hubei, but also other provinces and even the entire country to varying degrees. It also affects some multinational companies' supply chains.

While mobilizing local authorities to coordinate the epidemic prevention and control program with resumption of work and production of enterprises, we are working hard to promote this process in all the links of the industrial chain, and to solve problems related to the collaborative resumption of work by major enterprises and SMEs. In our work, we not only focus on giving full play to the market's self-healing functions, but also focus on the role of government in policy guarantee and coordination, and providing precise services for the key industries and key industrial chains. To this end, the Ministry of Industry and Information Technology has sent liaison staff to help promote resumption of work and production to key enterprises in some provinces and cities, helping them to solve cross-regional and cross-sectoral problems and promote the resumption of work and production of the entire industrial chain.

In response to the current difficulties facing SMEs, the executive meeting of the State Council has studied and issued a number of policies and measures last week. Local governments and relevant departments have also successively introduced a series of policies to provide a strong guarantee for the production and operation of the SMEs. At present, except in Hubei province, the operating rates of large industrial provinces and industrial enterprises above designated size have mostly exceeded 90%, and in key industrial provinces such as Zhejiang, Guangdong, Shandong, and Jiangsu, the rates have even exceeded 95%. The work and production resumption rate of SMEs is also steadily increasing, reaching 52%. Taken together, we can see the fundamentals supporting long-term and positive growth of Chinese economy have not changed, and the impact of the epidemic is short-term and generally controllable.

What I want to stress here is that no matter whether it is a domestic or a foreign-funded enterprise, we treat it equally, so that it can enjoy the same policies and services. Thank you for your question.

CCTV:

Science is the most powerful weapon to defeat the epidemic. General Secretary Xi Jinping has repeatedly stressed that science and technology are indispensable to control the epidemic. We must adhere to scientific prevention and control, and accelerate the development of scientific research and technology. What progress has been made on research during this period of epidemic prevention and control? What achievements can be shared with the international community? Besides, what is the main direction and focus of the scientific research in the next step? Thank you.

Ding Xiangyang:

Thanks for your question. General Secretary Xi Jinping and the CPC central committee have attached great importance to scientific research on epidemic prevention and control. Following the arrangement of the Leading Group of the CPC Central Committee for Coronavirus Prevention and Control, the Central Guidance Team in Hubei has been focusing on the needs of the frontline prevention, control and treatment work in actively promoting scientific research. Under the Joint Prevention and Control Mechanism of the State Council, the Ministry of Science and Technology, the National Health Commission, the National Medical Products Administration and the Ministry of Education have jointly set up a research group focusing on five major fields, as well as nine teams specializing in such areas as treatment medicine, vaccine,TCM and big data so as to mobilize national scientific and technological strength to ensure full success in the work.

Regarding drug screening, both the TCM and Western medicine are given equal value. After screening over 5,000 kinds of medicine, we have conducted clinical trials of specific types for different groups of patients, those with mild and moderate infections.

In terms of blocking a mild symptom from developing into a severe one, both TCM treatment and the combined treatment of TCM and Western medicine have achieved remarkable results. A new medicine developed by a team of TCM academicians shows that clinical symptoms of the cases in which it has been used were significantly relieved and none of the cases became severe. The therapeutic outcome of the screened ready-made TCMs indicates that they have definite curative effect.

With regard to the new technology of clinical treatment, the convalescent plasma therapy and stem cell treatment are being explored for severely and critically-ill patients. This is also a safe and effective means to reduce the disease mortality currently.

Regarding vaccine development, we are promoting five parallel technical directions. Most of the vaccines should be available for clinical trials by mid-April or even earlier. This is good news for everyone.

As for detection technology and product development, researchers have been racing against time to develop a number of detection products. By March 3, a total of 14 detection reagents had appeared on the market after emergency approval.

We are focusing on the front-line prevention and control needs of Wuhan city and Hubei province at large and seeking to speed up emergency research to come up with more achievements that are increasingly practical and effective. Thank you.

Kyodo News:

I'd like to know more about the virus nucleic acid testing kit. What is its daily output across China? What is the minimum and maximum daily supply? Since the outbreak, what steps has China taken to increase its virus test ability?

Wang Jiangping:

Thank you for your questions. The Chinese government has consistently attached great importance to the research, development, production and supply of the COVID-19 nucleic acid testing kits. General Secretary Xi Jinping on March 2 inspected the scientific research on COVID-19 as well as the diagnosis and treatment of the disease in his visit to two institutes in Beijing, when he learned about the progress on the fast testing kit research and application. Premier Li Keqiang stressed speeding up the development of more quick, accurate and fast testing kits. The Ministry of Industry and Information Technology is actively helping enterprises speed up production and meet the demand for fighting COVID-19. At present, 12 enterprises across the country have obtained a product registration certificate and have gone into production.

The Ministry of Industry and Information Technology is mainly responsible for coordinating the production and supply of medical supplies, and here I can provide you with some data about testing kits. Since the testing kit was approved for release to the market, we have cumulatively supplied testing kits for 15.374 million people by March 5 with average daily supply reaching 341,600. Now, these enterprises have testing kits for about two million people in stock, which means there are sufficient available to fully meet the testing needs of Hubei province and other regions across the country. Thanks.

Hubei TV:

Could you please illustrate to the general public how TCM is used to treat COVID-19? What kind of distinctive advantages does it have? Thank you.

Xi Yanchun:

Let's give the floor to Secretary Yu Yanhong.

Yu Yanhong:

This is a good question. I have mentioned the difference between TCM and Western medicine while answering an earlier question. When TCM is used in contagion prevention and treatment, it focuses on enhancing the body's immunity and repair capacity, and maintaining a general balance. Therefore, it has its own advantages and can offer a different strategy when dealing with contagious diseases that have unknown causes and where vaccines and effective medicines are absent.

Through symptoms and clinical analysis, TCM can offer a treatment plan and put it into immediate use after the outbreak of the epidemic, so it has certain advantages of quick response and speedy action. During the epidemic this time, the early application of TMC and its instant efficacy on symptomatic improvement enhanced the confidence of patients to combat the disease.

Since the outbreak of the epidemic, TCM experts have absorbed essence from ancient classic prescriptions, combined it with clinical diagnosis experience, and put forward a comprehensive TCM plan in a rapid way, and this has undergone constant improvement during daily clinical treatment. According to the plan, we stick to its early application, total involvement, targeted treatment and deep engagement in the whole process including prevention, treatment and recovery.

As for patients with mild and ordinary symptoms, we used TCM immediately; in regard to severely and critically-ill patients, TCM and Western medicine experts conducted joint consultation, applied both kinds of medicine giving full play to their synergistic effects; as for patients in the recovery phase, we applied TCM, acupuncture and massage to facilitate their recovery.

Practice shows that TCM has efficacy on COVID-19 pneumonia treatment. In the newly released seventh edition of the diagnosis and treatment plan, there is much TCM content, including general prescriptions, formulas for different symptoms and syndromes, and ready-made TCM list. It showcases the integration of the diagnosis of syndromes and diseases, theory and clinical practice, guidance and standard, and also that of inheritance and innovation. We are willing to let more people know about TCM and share the experience with the international community.

Channel NewsAsia:

The National Health Commission recently said that the outbreak in Hubei has been effectively contained. Given this situation, can we begin to lift prevention and control restrictions gradually? What level of epidemic prevention criteria should be achieved to lift restrictions? Thank you.

Ding Xiangyang:

Thank you for your questions. We have checked today's epidemic data. It should be said that the rapidly rising trend of the epidemic in Wuhan has been contained. However, it should also be noted that the number of daily confirmed and suspected cases in Wuhan and Hubei still accounts for a large proportion of the country's total. There are still around 20,000 patients in hospitals, and we still face great treatment pressure. Wuhan remains the key area of the country's epidemic prevention and control work.

As for the question of lifting restrictions gradually, I think we are all very concerned. With the improvement of the epidemic situation in Wuhan and Hubei, the relevant parties will report for approval and then make adjustments in a timely manner in accordance with the Law on the Prevention and Treatment of Infectious Diseases, as well as the Regulations on Preparedness for and Response to Emergent Public Health Hazards.

When I went out this morning, I saw that the cherry blossoms were blooming right in front of the door. This signals that winter has passed and spring is here. I think the day everyone is anticipating is not far away. Thank you.

Xi Yanchun:

Thank you all. That's the end of the briefing.

.

Read in Chinese

Speakers:

Ma Zhaoxu, vice minister of foreign affairs;

Guo Yezhou, vice minister of the International Department of the Central Committee of the Communist Party of China;

Zeng Yixin, vice minister of the National Health Commission.

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

March 5, 2020

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are joined by Ma Zhaoxu, vice minister of foreign affairs; Guo Yezhou, vice minister of the International Department of the Central Committee of the Communist Party of China; and Zeng Yixin, vice minister of the National Health Commission. They will brief you about international cooperation in response to COVID-19 and will also take questions.

First, I will give the floor to Mr. Ma. 

Ma Zhaoxu:

Ladies and gentlemen, good morning. I'm very glad to be here and take the opportunity of this SCIO press conference to exchange information on international cooperation in regards to the prevention and control of COVID-19.

COVID-19 poses a major threat to the lives and health of Chinese people and is a serious challenge for global public health. Under the leadership of General Secretary Xi Jinping, we have given full play to the advantages of our system and mobilized national resources with concerted efforts. With a responsibility to the people in China, as well as the rest of the world, we have adopted the most comprehensive, rigorous and thorough prevention and control measures. Chinese people have been working together to fight the epidemic. Currently, we have seen much progress in the containment of COVID-19.  

Since the outbreak of the epidemic, President Xi Jinping has attached great importance to international cooperation for epidemic prevention and control. He issued important instructions on many occasions in strengthening communication and coordination with different countries and the World Health Organization (WHO). General Secretary Xi is also very concerned about the protection of Chinese citizens overseas. The instructions of General Secretary Xi gave us direction in how to handle international cooperation in response to COVID-19. President Xi Jinping also conducted phone conversations at the invitation of leaders from more than 10 countries and held meetings with the Prime Minister of Cambodia, President of Mongolia, and WHO director-general during their special visits to China. President Xi Jinping pointed out that upholding the spirit of a community with a shared future for mankind, China has not only been doing its best to protect the lives and health of its own people, but has also made positive contributions to safeguarding global public health security. These words convey a clear message that China will undoubtedly win the battle against the epidemic by mobilizing all resources, and blocking the spread of the virus. WHO Director-General Tedros Adhanom Ghebreyesus said on many occasions that President Xi's personal guidance and deployment show his great leadership capability. Leaders around the world also voiced confidence that under President Xi Jinping's leadership, the Chinese people will surely win the final victory over the epidemic.

China is standing at the forefront of the epidemic prevention and control work, and our contribution to global public health has won international recognition. Just as WHO Director-General Dr. Tedros Adhanom Ghebreyesus noted, China's forceful actions have been protecting not only its own people, but also the rest of the world, and bought time for the global epidemic response. UN Secretary-General António Guterres said, under the personal direction of President Xi Jinping, China has mobilized the whole nation to meet the grave challenge. With huge sacrifices, the country has made a great contribution to all mankind. China's concrete actions have won wide endorsement and appreciation from across the world, and demonstrated its sense of responsibility as a major country as well as its firm commitment to the building of a community with a shared future for mankind. As leaders of various countries have said, the determination of the Chinese people to win the fight against the epidemic is awe-inspiring and the speed and scope of China's response to the epidemic is something that is rarely seen in the world. China's speed, scope and efficiency in this fight have demonstrated the institutional advantages of China's system of governance.

"A friend in need is a friend indeed": China is by no means alone in its fight against the epidemic. The international community has given us much valuable support. Leaders of over 170 countries and heads of more than 40 international and regional organizations have sent messages of sympathy and support to China. The United Nations, Shanghai Cooperation Organization, BRICS, Association of Southeast Asian Nations, African Union, Arab League, Community of Latin American and Caribbean States, and the G77 have issued statements specifically expressing their confidence in and support for China. Many countries, international organizations and NGOs have also lent a helping hand by donating medical supplies to China, which has played an important role in battling the epidemic.

This fight is a great opportunity to put into practice the important concept of building a community with a shared future for mankind proposed by President Xi Jinping. Guided by the vision of building a community with a shared future for mankind, China will share weal and woe with the international community to jointly fight the epidemic. In a spirit of openness and transparency, China has provided timely updates on the epidemic, actively responded to various concerns, and worked hard to strengthen cooperation with the international community. We have communicated epidemic-related information to the WHO in a timely manner and shared the genetic sequencing of the virus. The international community, including the WHO, has spoken highly of China's actions. Recently, a joint expert team consisting of specialists from China and the WHO concluded a nine-day field inspection in Beijing, and Guangdong, Sichuan and Hubei provinces. The expert team acknowledged China's prevention and control measures as comprehensive, concrete and fruitful. They stated that China's efforts have won valuable time for the world and provided lessons for other countries. As COVID-19 spreads across the globe, China will continue to strengthen its cooperation with the WHO and contribute its share to the global epidemic prevention and control work.

Confronted by this sudden outbreak, the Chinese government has been resolute in protecting the security and interests of our citizens abroad. In response to overreactions by certain countries, we have stated our position at the earliest opportunity in line with rules and recommendations of the WHO. We are also in daily communication and consultation with various countries to reduce the impact on personnel and economic exchanges as much as possible. All our diplomatic and consular missions actively contacted Chinese nationals from Wuhan city and Hubei province who had been stranded overseas. We have brought back over 1,300 Chinese nationals stranded overseas. The Chinese embassy in Japan and the Office of the Commissioner of the Ministry of Foreign Affairs in the Hong Kong Special Administrative Region have assisted Hong Kong government in bringing back residents of Hong Kong and Macao from the Diamond Princess cruise ship docked in Japan. With the people's interests in mind, our diplomatic and consular missions are working around the clock in the fight against the epidemic.

The virus is merciless. The Chinese government attaches great importance to the safety, health and livelihood of foreign nationals in China. The Ministry of Foreign Affairs is working hard alongside local governments to solve their problems. The ministry has held three briefings on the prevention and control of the epidemic, and opened a special service hotline for embassies and consulates in China. Various local authorities have launched multilingual information services for foreigners in China through different channels, and made every effort to ensure their livelihoods, epidemic prevention and medical needs. We are also particularly concerned about the life and health of foreign students in China, and are taking care of them as if they were our own to ensure they feel at ease in the country.

The current global epidemic situation is changing rapidly. As we do our best in domestic prevention and control, we will continue to actively carry out international cooperation to combat the epidemic in an open, transparent and highly responsible manner; to share our experiences and practices in prevention and control measures, diagnosis and treatments; and to explore joint prevention and medical practice. We are also exploring further joint prevention measures with other countries; strengthening communication and coordination; exchanging epidemic information; exchanging control experiences and technologies; and carrying out cooperation in areas such as treatment programs, as well as drug and vaccine research and development.

I would like to stress that we will never forget the help provided by the international community, and we are ready to provide help within our capacity to countries in need. The virus knows no borders and the epidemic is the common enemy of mankind. The fight against COVID-19 once again shows that in an era of globalization, countries are more closely linked and are now inseparable. In the face of the epidemic, all countries must work together to build a community of shared future for mankind.

The Chinese nation has experienced many hardships but has never been crushed. Under the leadership of President Xi Jinping and with the strong support of the international community, the Chinese people will work in unity to achieve the final victory against the epidemic and to safeguard global public health and well-being. Thank you.

Hu Kaihong:

Thank you, Mr. Ma. I would now like to invite Mr. Guo to make an introduction.

Guo Yezhou:

Thank you. Friends from the media, since the outbreak of the COVID-19 epidemic, the International Department of the CPC Central Committee, as the core agency directly responsible for the Communist Party of China's foreign affairs, has resolutely implemented the spirit of General Secretary Xi Jinping's instructions as well as the decisions and policies of the CPC Central Committee, given full play to the characteristics of the Party's foreign work and advantages, and taken the initiative to strengthen communication with foreign political parties and organizations. We have comprehensively introduced the strictest, most comprehensive and most thorough measures in epidemic prevention and control by leveraging the capabilities of the whole Party, entire armed forces, and people of all nationalities under the leadership of General Secretary Xi Jinping, with one heart and one mind. We have also shared information on our cooperation with the WHO and the international community, promotion of social and economic development, and are providing assistance within our capacity to other countries and regions where the epidemic has spread.

Political parties in many countries have fully affirmed and actively supported China's epidemic prevention and control work. So far, more than 300 political parties and political organizations in 120 countries have sent over 500 letters of condolence to General Secretary Xi Jinping and the CPC Central Committee, expressing their support for fighting the battle against the epidemic by mobilizing all resources, and blocking the spread of the virus under the leadership of the CPC.

The support from the political parties and organizations in different countries bears the following three major characteristics: The first is high concern. The leaders of major political parties across Asia, Africa, Latin America, Europe and Oceania, for example, sent messages or letters to express their sympathy and support immediately after the outbreak of the epidemic, and they have since voiced more support for China. The second is broad representation. The political parties and organizations span the spectrum. They include political parties with different ideologies, whether left, right or center, whether in power or opposition; international organizations of political parties and coalitions of regional political parties are also involved. Multiple political parties of some countries sent joint messages or letters of support to General Secretary Xi Jinping. The third aspect is their diversified forms. Apart from sending messages or letters, the leaders of political parties in some countries have specially made videos seeking to cheer up the Chinese people, or published statements or articles in their domestic media to express their support for the Chinese people in combating the epidemic. 

In their messages and letters to China, various political parties in different countries widely recognized the vital role played by the wise leadership of General Secretary Xi Jinping in China's fight against the epidemic. Political leaders in many countries believe General Secretary Xi Jinping's personal decision-making, deployment and command are the most critical factors in guiding all Chinese regions to promptly adopt various measures to effectively prevent the outbreak from spreading and worsening. They spoke highly of General Secretary Xi Jinping's accurate judgment, sound arrangements and strong leadership in China's anti-epidemic battle, saying that Xi's consideration and decisions showcase the fact that he always puts people's safety and health first, the spirit of wholeheartedly serving the people and his strong sense of responsibility towards the rest of the world. They also said that they believe China, under the strong leadership of General Secretary Xi Jinping, will win the battle against the epidemic at an early date.

In the messages and letters sent to China by the political parties in different countries, it is widely recognized that the strong mobilizing and organizing abilities of the Communist Party of China (CPC) have served as the backbone of the anti-epidemic fight. They believe the CPC has led the Chinese people to take unprecedented containment measures, and conducted efficient and all-round mobilization and organization in such a way that Party committees and governments at all levels are active in their work and all grassroots-level Party members play a pioneering and exemplary role on the frontline. The concerted efforts have formed a strong power to combat the epidemic, fully demonstrating that the CPC is the backbone of the Chinese people, as well as the core of the leadership in various undertakings of China. 

It is also widely recognized that the prominent advantages of the socialist system with Chinese characteristics offer a strong guarantee for victory in the battle against the epidemic. Leaders of the political parties in many countries said that, other than China, it's hard to imagine any other country being able to effectively mobilize all available manpower and resources at home in such a short time. The Chinese strength, Chinese spirit and Chinese efficiency in the country's anti-epidemic fight is highly appreciated by the international community, and showcases the unique advantage of the socialist system with Chinese characteristics in "mobilizing resources for major undertakings."

In addition, political parties from many countries have fully affirmed that China won time and gained experience for the world in its fight against the epidemic, which reflected General Secretary Xi Jinping's concerns for the whole world. They also affirmed the prospect for China's social and economic development. Many of them helped to put down rumors and misinformation spread by certain politicians and media. In this way, these objective and fair voices have become the mainstream of international opinion. This demonstrates once again the concept of building a community of a shared future for mankind put forth by General Secretary Xi Jinping has won support among the people. It also showcases the common aspiration that political parties from all the countries help each other and work together to fight the epidemic. At the same time, it also shows that the CPC upholds the principles of mutual respect, mutual learning and seeking common ground while transcending differences to promote to build a new form of party-to-party relations. It is certain that we have won and will have more supporters worldwide.

It is known that most countries are led by political parties, that is to say, political parties are the main body of a country. Political parties are key in making national decisions, represent the will of their people, lead public opinion, and summarize the common benefits of the people. The CPC strives for both the well-being of the Chinese people and the cause of human progress, and takes as its mission to make new and greater contributions to mankind. The CPC's party diplomacy is an important task of the Party, an essential part in the state's overall diplomatic work and an important feature of major country diplomacy with Chinese characteristics.

Under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the International Department of the CPC Central Committee will maintain its advantages in inter-party relations and introduce to the outside world the achievements made by the Chinese people led by the CPC in fighting the epidemic through our own channels. We will convey the message that China has the confidence to win this battle, and that China's socio-economic development will be stable and grow steadily. We will also help political parties in other countries to continue to play a role in providing political guidance, gather all forces, promote regional and international cooperation in public heath to fight and win this battle against the epidemic and promote the building of a community with shared future for mankind. Thank you.

Hu Kaihong:

Thank you, Mr. Guo. Next, Mr. Zeng will give his introduction.

Zeng Yixin:

Good morning, media friends. Since the COVID-19 outbreak, following the decisions, deployments and guidance of President Xi Jinping, the National Health Commission (NHC) has attached great importance to the prevention and control of the epidemic. We have conducted international and regional cooperation in the fight, reported relevant information in a timely manner, shared our experience in terms of epidemic prevention and control, as well as diagnosis and treatment practices, and also conducted technical exchanges, which have received positive feedback from the international community. Our priorities are represented by the following two aspects:

First, we have conducted multilateral communication and collaboration, thus being able to achieve global solidarity and consensus. We organized and hosted WHO Director-General Tedros Adhanom Ghebreyesus's visit to China, and President Xi Jinping met and held talks with him. We also talked with the WHO chief on cooperation in epidemic prevention and control. We organized a WHO-China expert team to conduct field inspections in Beijing, Guangdong, Sichuan and Wuhan, to obtain a clearer picture of China's epidemic situation, prevention and control measures, medical treatment, as well as progress of scientific and technological research into the virus. The joint expert team has provided a lot of constructive suggestions to the work of epidemic prevention and control in China and around the world. Officials of the NHC have communicated by various means with the WHO and other international and regional organizations, as well as the health authorities of other countries. The NHC also hosted the visit of Egypt's Health Minister Hala Zayed. They have offered sympathy and support to the Chinese government and Chinese people in fighting the outbreak. At a press conference of the WHO-China joint expert team, the WHO experts spoke highly of the contribution China has made to upholding global public health security. 

Second, we have shared epidemic information and strengthened our global technical collaboration. The NHC has shared epidemic information with the WHO and other international and regional organizations in a timely manner. After we identified the pathogenic nature of the virus, we shared its full genome sequence, primers and probes with the international community at the earliest possible date. We also shared many technical documents, including our epidemic prevention and control measures, as well as diagnosis and treatment plans, with more than 100 countries around the world and over 10 international and regional organizations. We held more than 20 expert seminars and remote meetings with the WHO, ASEAN, EU, APEC, African Union, CARICOM, SCO and other international and regional organizations, as well as with Japan, South Korea, Russia, Germany, France, the United States and Laos, sharing China's experience and practices in preventing and controlling the epidemic, such as laboratory testing, epidemiology investigation, as well as clinical diagnosis and treatment.

Diseases do not respect borders, and we should work together to jointly protect people's health around the world. Looking ahead, we will earnestly implement the decisions and deployments made by the CPC Central Committee and the State Council. In line with the International Health Regulations (IHR) and the health cooperation protocols with relevant countries, we will continue to conduct efficient cooperation with the WHO, and share with the international community our experience and information in epidemic prevention and control, as well as coordinate the measures being undertaken, so as to prevent the coronavirus being imported into China on the one hand, and do what we can to support other countries and regions with the epidemic outbreaks on the other. We will play our role as a responsible major country, and promote the building of a community with a shared future for mankind, so that we can jointly safeguard regional and international public health security. Thank you.  

Hu Kaihong:

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

CCTV:

Since the outbreak of the epidemic, what kind of assistance has China received from the international community? At present, some countries are facing increasing pressure in the fight against COVID-19. Will China provide relevant assistance to other countries? What lessons could the international community learn in their fight against the epidemic? Thank you.

Ma Zhaoxu:

As I mentioned in my introduction earlier, since the outbreak of COVID-19, the international community – including foreign governments, people from all walks of life and international organizations – have provided large amounts of material assistance to China. We are very grateful for all the support. By the end of March 2, a total of 62 countries and seven international organizations have sent urgently needed materials such as face masks and protective suits for the epidemic prevention and control work in China. Behind these numbers are lots of touching stories. For example, Myanmar's government helped us with rice; the Sri Lankan government provided us with black tea; the Mongolian government donated 30,000 goats; and the Pakistani government sent all their stocks of face masks from the country's hospitals to China. This timely help embodies the phrase "A friend in need is a friend indeed." We will not forget this.

Maybe you have already heard of one touching story involving a 10-year-old Mongolian girl studying in China who donated 333 yuan (US$48) to Hubei province and another two Chinese places respectively, expressing her wish that the outbreak would be over quickly. She did so because the pronunciation of the number "three" and the word "disperse" sound similar in Chinese. We were all deeply moved by her story. Another example is Kang Seung-seok, the new consul general of the Republic of Korea (ROK) in Wuhan, who arrived in the epicenter when most people were leaving. There are numerous examples like this, which demonstrate the good will of the international community standing beside China to fight the epidemic together.

We have mainly relied on ourselves in the fight against COVID-19, while also expressing gratitude to all the sincere assistance from the international community. As we said, the epidemic will be temporary, but friendship and cooperation are long-lasting. The Chinese people will never forget all the kind sympathy and support from the international community.

At present, although China has made remarkable progress in the prevention and control of the epidemic, our work fighting COVID-19 is still at a critical stage and we cannot relax at all. Currently, confirmed cases of COVID-19 have been reported in many countries, and the number is growing fast. In some countries, the situation is getting worse. Under such circumstances, China has done what we can to lend a hand. We have provided test kits to Pakistan, Japan and the African Union (AU), and shared treatment methods with many countries. The Chinese government, Red Cross Society of China and a range of Chinese enterprises have also donated test kits to Iran and countries in Africa, whilst Red Cross Society of China has sent a team of volunteer experts to Iran. Based on the changing situation of COVID-19, we will continue to work on the prevention and control of the epidemic in China. At the same time, we will also continue to deepen international cooperation with other countries, and provide support to foreign countries to the best of our abilities.

We are willing to strengthen health care cooperation with related countries, especially those hit hard by the virus as well as the WHO, and stand closely together to combat the epidemic. I want to emphasize one more point: In the age of globalization, the future of all countries is closely intertwined. Society has become a community with a shared future where our interests are closely tied together. In the face of the outbreak, no country can stay immune. In the face of global challenges like public health security, should we stand closely together, or abandon our neighbors? Should we fight side-by-side, or adopt a "wait-and-see" attitude? Should we offer timely support, or add insult to injury? The answers are self-evident. Just as WHO Director-General Dr. Tedros Adhanom Ghebreyesus said, the virus has attacked us and humanity must join hands to fight it; it is a threat to all of us and we must unite as one. The idea of building a community with a shared future for humanity, put forward by President Xi Jinping, calls on all countries to rise above differences in social systems, history, culture and development stage. The vision highlights the common pursuit of human values, embraces historical trends, and faces up to the world's most important and pressing issues. 

Major public health security incidents are one of the greatest challenges facing humanity today. In the global battle against the epidemic, the international community should stand closely together, support each other and fight side-by-side. We will promote the building of a community with a shared future for humanity, strengthen international coordination and cooperation, and work with other countries in combatting the epidemic. We will advance international cooperation in public health, and boost international health development.

Xinhua News Agency:

The report by the WHO-China Joint Mission has recently been unveiled, which includes recommendations on prevention and control work in China and the international community. What are the next steps for China and the WHO to promote international cooperation in prevention and control of the COVID-19 outbreak? Thank you.  

Zeng Yixin:

Disease knows no borders, and the COVID-19 outbreak is a common challenge facing mankind. There is still a long way to go before we can fully understand the origin, pathogenic mechanism and transmission mechanism of COVID-19. In this age of globalization, the disease could spread at an unprecedented rate. As Mr. Ma just mentioned, no country can stay immune in the face of the severe outbreak and we should join hands to meet challenges. In this regard, the WHO has played a very important and irreplaceable role. I guess many people have read the WHO-China joint report. As the report pointed out, in the face of a previously unknown virus, China has rolled out perhaps the most ambitious, agile and aggressive disease containment effort in history. This has averted or at least delayed hundreds of thousands of COVID-19 cases in the country. The report also said that China has played a significant role in creating a stronger first line of defense against international spread. Containing this outbreak, however, has come at great cost and sacrifice by China and its people, in both human and material terms.

I notice that the Joint Mission has offered very specific and constructive recommendations on what the international community could learn from China in terms of epidemic prevention and control. It is also mentioned in the report that China's rapid return to full productivity and economic output is vital, since the world needs access to China's experience in responding to COVID-19. I have also noticed what team leader Dr. Bruce Aylward said during the press conference, "It's so important that we recognize that, to the people of Wuhan, it is recognized that the world is in your debt and when this disease finishes, hopefully we'll have a chance to thank the people of Wuhan for the role that they played in it." I think the WHO-China Joint Mission, which is made up of world-famous experts with conscience, has delivered very important messages to the world. These have played a significant role in helping the international community understand the efforts China has been making in epidemic control and prevention.

The team has also pointed out what needs to be improved in our work and given some very concrete advice. As such, I want to say that the WHO has played a guiding and coordinating role in epidemic control and prevention. In the future, we will maintain close communication with the WHO and ensure the timely notification of information on the epidemic. We will also carry out the suggestions made by the team and the International Health Regulations Emergency Committee, and develop technical cooperation under the WHO framework. We are preparing to recommend some relevant organizations to become WHO reference laboratories for COVID-19 and to share China's technical solutions for diagnosis, treatment, and epidemic control and prevention. We will encourage more R&D institutions and experts to take part in the international cooperation led by the WHO and provide technical support to countries affected by the epidemic via the WHO platform. By adhering to the principles of openness and transparency, we will communicate closely with the WHO, enhance technical exchanges and share our experience and solutions, making all-out efforts in fighting the epidemic globally. Thank you. 

Ma Zhaoxu:

I have one thing to add. Since the COVID-19 outbreak, the WHO – as the most authoritative specialized international organization in the field of international health care – has done great work to mobilize the international community in creating scientific countermeasures and taking control and prevention actions including research and development cooperation. This is fully recognized and highly appreciated by China.

You might have noticed that since the outbreak, China has established close contact with the WHO from the outset and has been cooperating effectively with the organization in a timely manner. As Mr. Zeng said just now, WHO Director-General Dr. Tedros Adhanom Ghebreyesus visited China at the most critical time of the epidemic and met with President Xi Jinping. Recently, we have also received a team of experts from the WHO and helped provide them with first-hand information on the outbreak. The advice they offered is highly valued, and is being studied and implemented. What I would like to say is that the WHO's task is tougher as the epidemic spreads around the world. We hope that the WHO can further promote international cooperation, especially providing more help and aid to developing countries with weak protection capacities, including African countries. In this respect, China will not be absent. We will do our best to enhance cooperation with the WHO and make efforts to help severely affected countries in urgent need.

Workers' Daily:

Many foreign political parties supporting China's fight against the epidemic are ideologically different from the Communist Party of China. Their countries also have big differences with China in terms of their social systems. How do the leaders of foreign political parties view the role of China's political system in the epidemic? Thank you.

Guo Yezhou: 

Infectious diseases are a common challenge for all political parties around the world. A virus does not recognize national boundaries and requires different types of political parties in different countries to work together and deal with it. However, in fighting the virus, mobilizing and organizing social forces to prevent and control the epidemic, different systems will show different performances. The outstanding performance of socialism with Chinese characteristics practiced by the Chinese people under the leadership of the CPC in the epidemic prevention and control has been followed closely and evaluated positively by foreign political parties. Their concerns can be summed up using three keywords:

The first keyword is "core." Leaders of political parties from many countries have spoken highly of the fact that China has such a strong core of leadership of General Secretary Xi Jinping, a leader who is able to keep a level head and turn things around in the face of sudden challenges. The chairman of one political party in a European country wrote in a letter to us that "The fact that General Secretary Xi Jinping has been personally commanding the efforts to combat the epidemic has set a new benchmark for world leaders. The decisive and swift professional prevention and control measures China has taken to combat the epidemic have become a model worthy of being followed and respected by the other countries in the world." Political party leaders of a number of countries have synonymously said that with General Secretary Xi Jinping personally in command and leading deployment, the Communist Party of China, the Chinese government and people will fight and surely win the battle against the epidemic by mobilizing all resources and blocking the spread of the virus.

The second keyword is "system". In their phone calls or letters to us, many foreign politicians and leaders of political parties said they had paid close attention to the efforts and achievements of China in building shelter hospitals, improving diagnosis and treatment technology, mobilizing a wide range of social forces for mutual support, and coordinating epidemic control with social and economic development. Amazed by China's abilities of organization, mobilization, and execution, unfolded during its endeavor to concentrate resources to accomplish big things, they believed the advantages of China's whole-nation system were fully displayed. Some of them said that they had been following the live streaming of the building of Huoshenshan Hospital from late January to early February and very much appreciated such program, from which they saw the prominent advantages of the system of socialism with Chinese characteristics.

The third keyword is "CPC members". Many foreign party leaders were impressed by the "battle fortress" role of CPC's local organizations and vanguard and exemplary role of party members. Last week, the International Department of the CPC Central Committee received a foreign party leader who expressed appreciation for way CPC members had led the way during the battle against the epidemic. This guest believed such performance embodied the loyalty and obedience shown by local members to the Party leader and the CPC Central Committee, a great source of strength.

"Not angling for compliments, I'd be content to let my integrity fill the universe." Our confidence in the Party and the system is not simply rooted in the praise of others. However, "peaches and plums do not talk; yet a path is formed beneath them," as the old saying goes. The positive responses from foreign party leaders and politicians testify that it is fortunate for the Chinese people and the Chinese nation to have a leader like General Secretary Xi Jinping at the helm, and it is absolutely right for the people and history to choose CPC leadership. They also verified that the theory and system of socialism with Chinese characteristics initiated by the CPC suit China's national conditions and are highly efficient, and the CPC Central Committee's major decision to uphold and improve the system of socialism with Chinese characteristics and promote the modernization of national governance system and governance capacity was made at a right time.

Besides, I would like to say a few more words in regard of international aid and cooperation covered in the briefing by the comrade from the Foreign Ministry. Many foreign political parties voiced their political and moral support in their phone calls or letters to us, and there are also many others who had offered specific and concrete aid, donating money and materials and launching various events. Among them, some organized donations within their respective parties; Some made use of their parties' influences and mobilized all kinds of forces such as non-government organizations to support China's battle against the epidemic; Some held a prayer ceremony and organized on-spot donation; and some party leaders who are at very old ages coordinated social donations in person and sent us money and materials such as facial masks and protective suits.

My colleagues have prepared a very long list for me, while I will not try to read out as we don't have enough time here. However, the key is not about how many materials or the size of funds donated, but rather it is that this support is visible and concrete, as well as political and moral. They show people's hearts, and show the confidence of the international community, especially of many foreign political parties in the CPC and Chinese government. They also show that these parties are willing to work together with China to fight against the epidemic. We are deeply grateful for this and keep it in mind all the time. We have also seen outbreak of the epidemic in some countries, and we feel for them. When the political parties and people in these countries fight the epidemic, China will certainly not be absent. We have shared and will continue to share our experience in fighting the epidemic with political parties of relevant countries. We have provided and will provide assistance and support to foreign political parties and their countries. We will fight the epidemic together and take practical actions to demonstrate the concept of a community of shared future for mankind. Thank you.

Nippon Television:

Now the epidemic situation is increasingly serious in other countries. Under this circumstance, Beijing, Shanghai, Guangdong province and several other places have taken local restrictive measures. So what kind of restrictions will the Chinese government take?

Ma Zhaoxu:

I know many foreign friends are concerned about this issue. Just now we mentioned that the epidemic is no respecter of national borders. After the outbreak, in order to fight the epidemic and curb its spread, many countries have adopted different restrictions.

In the current situation, local governments in China have adopted relevant inspection, quarantine and prevention and control measures for people entering China from countries or regions experiencing a severe outbreak in accordance with laws and regulations and in accordance with local epidemic prevention and control needs and the international epidemic situation. Local practices should be determined by local governments as needed, such as measuring body temperature, 14-day medical observation at home or at a government-designated site. These practices are in compliance with Chinese laws and regulations. They are not only necessary for epidemic prevention and control, but also can effectively prevent transnational spread of the epidemic. They are responsible for the safety and health of the Chinese people, as well as for the safety and health of foreign citizens, and they are beneficial for the world's epidemic prevention and control.

According to the development of the epidemic, local governments in China will, in a timely and dynamic manner, adjust prevention and control measures for foreigners entering the country. In some places, some measures are being gradually introduced and adjusted as necessary. They are made entirely by local governments in accordance with the development of the epidemic and the needs of local prevention and control. I want to emphasize that, in taking these measures, we give equal treatment to foreign citizens and Chinese citizens, and implement corresponding measures without discrimination, and fully take care of reasonable individual concerns and provide them with the necessary protection and assistance. In fact, the measures China has taken so far in response to the epidemic have effectively alleviated the spread of the epidemic and prevented human-to-human transmission of the virus, which have also been highly recognized by the WHO. We hope that people from countries severely affected by the epidemic can fully understand and actively cooperate with the relevant prevention and control measures taken by local governments, and work with the Chinese side to prevent risks associated with the epidemic and safeguard their own health and safety, as well as the health and safety of others.

Beijing Youth Daily:

Mr. Ma explained that we have brought back more than 1,300 Chinese citizens who were stranded overseas. There are also many Chinese who are currently in countries where the epidemic has broken out, either working, travelling or visiting relatives. What measures has the Chinese government adopted to protect their safety and health since the outbreak? Thank you.

Ma Zhaoxu:

Since the outbreak occurred, we have made all-out efforts to fight the epidemic. At the same time, we have never forgotten overseas Chinese. We have paid great attention to the difficulties and problems overseas Chinese citizens face due to the epidemic. Since the outbreak, the Ministry of Foreign Affairs, civil aviation, commerce, customs, immigration, education, health and other departments have cooperated closely to help overseas Chinese. Moreover, we have guided all overseas embassies and consulates to conscientiously implement the decisions and arrangements of the CPC Central Committee and the State Council, and take swift action to fully safeguard the safety, health and rights of overseas Chinese citizens.

As I mentioned in my opening speech, we have assisted stranded residents of Hubei province return home, and helped the governments of the Hong Kong and Macao special administrative regions (SARs)bring back residents on the Diamond Princess cruise ship from Japan. A more important task is to help overseas Chinese strengthen self-protection. This is very important. Our embassies and consulates overseas have actively maintained close contact with local Chinese-funded institutions, overseas Chinese communities and overseas Chinese students. During this period, our embassies and consulates have given top priority to assisting the epidemic prevention and control amongst Chinese citizens overseas. We have adopted various measures to assist our citizens, including using websites, WeChat and local media to explain the situation, release alerts, organize lectures, compile handbooks, and guide our citizens to better protect themselves. This is the first thing we did.

Second, our embassies and consulates are closely following the situation of Chinese citizens abroad who have been either diagnosed with or suspected of having COVID-19, and have provided all necessary assistance to ensure they receive effective treatment from local health departments and medical institutions in a timely manner. As you may know, some Chinese citizens diagnosed with the virus overseas have been discharged after local treatment. During the process, our embassies and consulates have monitored and assisted throughout. For example, many of the passengers of the Diamond Princess cruise ship were infected with COVID-19. After some people were quarantined, the Chinese Embassy in Japan immediately went to the hospital to visit Chinese patients and brought urgently needed medicine for the elderly. Doctors of the hospital said that they treated patients from many countries from the cruise ship, but the Chinese embassy was the first to visit its patients and citizens.

The Global Emergency Call Center for Consular Protection and Services (12308) has been available 24 hours for overseas Chinese citizens in trouble or soliciting for help. The hotline, receiving calls around an average of 1,100 each day, has enabled timely consultation services for those in need. When a number of discriminative cases have happened to our Chinese citizens in certain countries, our consulates have negotiated, stopped and denounced them promptly. To uphold the rights and interests of the many overseas Chinese students, Chinese consulates, under the guidance of the Ministry of Foreign Affairs and the Ministry of Education, have kept in touch with local educational institutes to address difficulties that Chinese students have had when starting the new academic semester. In addition, appropriate arrangements have been implemented for those who have failed to return to schools abroad. The assistance to Chinese citizens overseas is comprehensive and holistic. We will continue to closely monitor the development of overseas epidemics and the difficulties encountered by Chinese citizens, and provide timely assistance to put the care of the Party and government into practice.

The Kyunghyang Shinmun:

We have noticed that State Councilor and Foreign Minister Wang Yi and South Korean Foreign Minister Kang Kyung-wha spoke on the phone on Feb. 27 and stated that the two sides have cooperated in epidemic prevention, medical treatment, and drug andvaccine research and development. What progress has been made in this regard?

Thank you.

Ma Zhaoxu:

We will never forget the precious assistance and support provided both in official and unofficial ways by South Korea while China has been engaged in the fight against COVID-19. Based on what we have undergone, the epidemic in South Korea greatly concerns us as well. Therefore, we are willing to offer any supplies that are necessary and stand by your side in fight against the epidemic as we take the challenges facing you as our own. The phone call you mentioned between State Councilor Wang Yi and South Korean Foreign Minister Kang Kyung-wha exemplified the close contact being kept between the two countries, and we are hoping to cooperate in epidemic prevention and control, medical treatment and medicine development. We will continue to keep in close touch with each other.

The Chinese government will soon provide South Korea with a batch of much-needed medical aid. In fact, some Chinese localities and enterprises have already or are preparing to provide assistance to South Korea, especially to areas with severe outbreaks such as Daegu and Gyeongsangbuk-do. We are doing all of this, and we will further increase our efforts.

At the same time, we are also discussing with the South Korean side to establish a joint prevention and control mechanism, because epidemic prevention and control must be done by everyone in order to effectively prevent the cross-border spread of the epidemic. We have also proposed to deepen cooperation with South Korea including strengthening existing information exchanges between counterparts in health, quarantine, customs and immigration. We are also expecting to establish a comprehensive platform to exchange views and information regarding anti-epidemic endeavors between the two sides. Meanwhile, guidelines dedicated to the prevention and control of the epidemic for tourists in China have been sent to South Korea as well. We hope through our cooperated effort, the epidemic can be contained more effectively so that the chances for it to spread across our borders will be much minimized. To this end, we will continue to communicate and negotiate with South Korea to enhance our cooperation.

Zeng Yixin:

Mr. Ma just now introduced the across-the-board cooperation between China and the Republic of Korea (ROK), and I want to add something further in regard to health. China and the ROK have enjoyed a long-term, friendly and practical cooperation on health matters; as the two foreign ministers mentioned in their phone conversation the two countries have maintained close communication and cooperation on epidemic prevention and control and medical treatment since the onset of the COVID-19 outbreak. The heads of the health authorities of the two countries have exchanged messages and maintained close communication on policies. The health authorities and disease control centers of the two countries share epidemic-related information in a timely way, while their experts held technical exchanges during an ASEAN-China-Japan-ROK high-ranking health officials' video meeting on response to the COVID-19 on Feb. 3. The health authorities of China and the ROK also opened an expert hotline and engaged in technical exchanges. China has also shared with the ROK its technical guidelines and plans on epidemic prevention and control through multiple channels. As the epidemic continues in the two countries, their health authorities and technological institutions will further strengthen the cross-border coordination mechanism on epidemic prevention and control, and enhance cooperation through various platforms such as the China-Japan-ROK health ministerial meeting, the mechanism of senior officials' meetings, the Japan-China-Korea Forum on Communicable Disease Control and Prevention, the China-Japan-ROK meeting of directors of centers for disease control and prevention, and the China-ROK hotline of directors of centers for disease control and control. The two countries will work together to promote technological sharing, including sharing experiences in epidemic prevention and control, medical treatment and nursing, and R&D into vaccines and medicines, and safeguard the wellbeing of the two countries, as well as regional and global public health security. Thank you. 

CNR:

The International Department of the Communist Party of China (CPC) Central Committee is the department responsible for the Party's international work, and what jobs has the department done to help fight the epidemic? Thank you.

Guo Yezhou:

Thank you for your question, and for your attention to the work of our department. After the epidemic broke out, the department immediately followed the arrangements of the CPC Central Committee to establish a leading team headed by Song Tao, head of the department, to cope with the epidemic. We earnestly learned and grasped the guiding principles of key speeches made by General Secretary Xi Jinping. While strictly implementing prevention and control measures, we gave full play to the features and advantages of the international communication with foreign parties, actively introduced vigorous measures taken by the CPC Central Committee with Comrade Xi Jinping at its core through Party channels, conveyed the confidence of China in winning the battle against the epidemic, and showed China's attitudes of shouldering responsibilities for the global public health. 

First, we brought into full play the leading role of politics in party exchanges, tried to help foreign parties learn about, understand and support our epidemic prevention and control. We worked hard to keep in close communication with foreign parties through meetings, talks, telephones and letters. A new method we have adopted is running a Wechat official account in English to introduce the important decisions and arrangements made by the CPC Central Committee with Comrade Xi Jinping at its core to foreign parties, and how the Party and government make all-out efforts to guarantee the security of people's health, and foster a better understanding of the community of shared future for humanity promoting global public health cooperation and of the measures on the joint prevention and control taken by all departments across China as well as the effectiveness of the measures. At the same time, we have noticed those touching stories from the front line. Those concrete moves we took have helped consolidate the confidence of the international community in China's victory against the epidemic, and their confidence in prospects of China's economic and social development.

Second, the International Department of the CPC Central Committee has been working to communicate the support of party dignitaries from foreign countries to the Chinese people. As required by the CPC Central Committee, the International Department has built connections with mainstream media to write news reports in an objective and timely manner about the recognition and support from these party dignitaries in China's battle against COVID-19. Over 30 such news reports have been produced by mainstream media including Xinwen Lianbo (the China Central Television evening news bulletin), People's Daily and Xinhua News Agency. In addition, we have adapted to the changing ways the public accesses information as well as their habits, by publishing a series of articles and short videos on our website and social media accounts to boost confidence and solidarity amid the epidemic.

Third, the International Department of the CPC Central Committee has been working to promote party-to-party communication and cooperation in a steady manner in accordance with the progress of the COVID-19 prevention and control work. Based on the epidemic situation, the International Department has been carrying out normal exchange activities with political parties from foreign countries, and strengthening information sharing and cooperation with these parties and relevant international organizations regarding epidemic prevention and control, medical care and public health. We will receive senior delegations of foreign political parties in Beijing over the following days. Issues concerning strengthening cooperation amid the epidemic and maintaining normal relations with relevant countries will be discussed to reach consensus. Thank you.

Kyodo News:

According to some news reports, projects under the Belt and Road Initiative (BRI) in some countries such as Pakistan have had to be postponed due to the epidemic. What impact will COVID-19 have on cooperation under the BRI? What measures will China take in this regard? Thank you.

Ma Zhaoxu:

Since the outbreak of COVID-19, many BRI partner countries have actively provided political and material support and assistance to China. They have expressed their willingness in various ways to continue cooperating with China under the BRI. China has also provided emergency medical supplies as much as possible to countries along the BRI route, such as Pakistan. This mutual help reflects the vitality of the BRI. We have both confidence and the capacity to win the battle against COVID-19. We believe that the epidemic's impact on the BRI is only temporary, and are willing to cooperate with all participants to promote the high-quality development of BRI. We have confidence in this regard.

Hong Kong Economic Herald:

According to a report from the WHO, as of March. 4, COVID-19 cases have been reported in 76 countries around the world. As China continues its efforts to prevent and control the epidemic domestically, what kind of technical support will China provide to the rest of the world to jointly contain the spread of COVID-19? Thank you.

Zeng Yixin:

Thank you for your question. As my colleagues have introduced, since the outbreak of COVID-19, many countries have offered assistance to China. In terms of technical support, China has established close communications regarding medical treatment with the WHO, EU, African Union, Caribbean Community, Association of Southeast Asian Nations, and other international organizations. Under this mechanism, we have been sharing information on epidemic prevention and control as well as medical treatment. Next, we will strengthen cooperation and exchanges with the rest of the world in the following aspects to jointly fight COVID-19.

First, we have continued to provide the latest versions of the guidelines for COVID-19 prevention and control and the diagnosis and treatment plan to international and regional organizations as well as related countries in a timely manner. The guidelines for COVID-19 prevention and control have been updated to the fifth version, and the diagnosis and treatment plan has been updated to the seventh version. We will keep making improvements to the documents and sharing the newest editions with all the parties who need them.

Second, we have continued to support Chinese and foreign experts on epidemic control and clinical treatment by sharing related techniques through various means, such as video and telephone conferences. Recently, we held a special press briefing in Wuhan, where Chinese clinical experts working on the frontline shared their opinions and experience in English.

Third, we have supported public healthcare and medical institutions, including the Red Cross Society of China and Chinese Center for Disease Control and Prevention, in sending expert teams to conduct cooperation and exchanges with technical agencies of related countries, to share information about the epidemic and experience on its prevention and control and to organize various forms of professional training. For example, taking test samples requires training as the process entails a lot of technical skills, such as how to take samples, how to perform tests, and what should be tested -- antigens, viruses, sera, antibodies, or all together. Having gone through such difficulties, we are ready to share our knowledge and experience with relevant countries to enhance the capabilities of their professional personnel on epidemic prevention and control as well as medical treatment. I believe such cooperation will contribute to the global epidemic prevention and control efforts. Thank you.

Ma Zhaoxu:

As the novel coronavirus continues to spread globally, some countries have made requests to China for assistance. Their needs can be divided into four categories: first, test kits for the novel coronavirus; second, protective suits, face masks, thermometers, and other supplies; third, drugs for COVID-19 diagnosis and treatment; fourth, experience in epidemic control, and COVID-19 diagnosis and treatment. We have offered supplies including test kits to some countries, and donated supplies vital for epidemic control to foreign countries through the Red Cross branches, civil organizations, enterprises, and local governments. In addition, we have sent a voluntary team of medical experts to Iran.

In the next step, we are stepping up efforts to help countries in dire need of assistance, including South Korea, Iraq, Cambodia, Myanmar, and Sri Lanka. Meanwhile, we are considering our response to the WHO's appeal for donations and will release information about our contributions in due course. In fact, among the countries that made requests for assistance, many have made donations to China since the outbreak. So, we are offering aid to these countries in order to help them combat the coronavirus and also to return their favor. There is a Chinese saying: "A favor of a drop of water should be repaid with a surging spring." Of course, we are providing necessary assistance to these countries within China's capacity.

Hu Kaihong:

Due to the time limit, we will now have the last two questions.

China Daily:

Many foreigners are currently living in China, especially in Hubei province. You just mentioned that the Chinese government takes seriously the safety, health and living conditions of foreign nationals living in China. Can you be specific about the measures taken in this regard? Thank you.

Ma Zhaoxu:

I mentioned that the Chinese government pays much attention to the safety and health of Chinese citizens as well as those of foreign nationals. Since the outbreak of the epidemic, the Foreign Ministry, other relevant agencies and local governments have been providing foreign nationals with all sorts of help. When they mentioned difficulties in accessing medical care and in their living situation, we offered support and addressed the problems raised. Another important work was to provide information and consultation services regarding the epidemic, because the foreigners, unlike the Japanese journalist, might not understand Chinese, and it is important to get clear information. We instructed local agencies to provide multi-lingual platforms for information release to offer targeted services to foreigners so they can rest assured, receiving latest updates on the epidemic in no time. Local foreign affairs offices set up hotlines so foreigners can phone in for help with all problems and difficulties they had encountered. We also established contact with foreign embassies in China to help their citizens address any problems they might encounter. Through these efforts, we effectively provided foreign nationals with help and support. As we see, most foreigners are living and working in China, undisturbed, as the result of our efforts.

Other efforts were also helping with the situation. For example, many local governments included foreign nationals into their integrated system for epidemic prevention and control and into the working mechanisms of subdistrict offices and residents' committees of various communities, not treating them as outsiders, but equals of Chinese citizens, and ensuring that their reasonable requirements were met. The Hubei provincial government specially enhanced the anti-epidemic treatment for foreign patients according to the hierarchical medical system, and did a fine job in offering treatment and guidance to foreign patients, with strengthened efforts in grid-based epidemic prevention and control. Foreign nationals living in China have shown their great appreciation for the care and attention they have received from the Chinese government and the Chinese people. Foreign students from Yemen, Pakistan and Cambodia studying in Hubei took to the media, saying "It's safe here, I'm not nervous at all," or "We, the foreign students, have been receiving care and attention from the Chinese government. China, I love you." A Yemeni student from Nanchang University in Jiangxi province, named A Wen, shared his feelings via WeChat Moments, saying "I am a foreigner, but absolutely not an outsider." Sudanese student Da Shan from Anhui University said "I and other foreign students didn't panic, instead, we have felt more warmth since the outbreak of the epidemic." We will continue to look after foreign nationals the same way we do Chinese citizens. You might have seen the news that two foreign doctors, husband and wife, from Pakistan and Mauritius respectively, volunteered to conduct anti-epidemic screening work at checkpoints in Wenzhou city, Zhejiang province. Foreign nationals received care and attention from the Chinese government and proactively participated in the prevention and control of the epidemic, making their own contribution to containing the spread of the epidemic in China and across the world. 

China News Service:

We know that the Communist Party of China (CPC) has maintained good relations with many cross-regional political party organizations around the world. My question is: have these organizations voiced their support for China in its fight against the epidemic? Thank you. 

Guo Yezhou:

Thank you for your question. As you stated, the CPC's circle of friends covers ruling parties, opposition parties and independent parties across the world, as well as governmental and non-governmental organizations. We have carried out vibrant exchanges with a wide range of friends including various political parties active in one nation, coalitions of regional political parties which are influential at the regional level, and international organizations of political parties which hold events and dialogues on a global scale. 

Up to now, we have received messages and letters expressing sympathy and support for the CPC in the anti-epidemic fight from more than 10 international organizations of political parties, including the Socialist International, International Conference of Asian Political Parties (ICAPP), Council of African Political Parties, Christian Democrat Organization of America, and Permanent Conference of Political Parties of Latin America and the Caribbean (COPPPAL), as well as transnational political party organizations and coalitions in Europe. All these organizations have broad representations. For instance, Jose de Venecia, chairman of the ICAPP Standing Committee, expressed his support for China's epidemic fight on behalf of over 350 political parties from 52 Asian countries. In his letter, he voiced confidence that under the outstanding leadership of CPC General Secretary Xi Jinping, the Chinese government and people will definitely overcome the outbreak. Despite the long distance, the COPPPAL and the Sao Paulo Forum, an influential gathering of left-wing political parties and organizations in Latin America, also expressed their deep appreciation and firm support for China's highly responsible attitude towards the safety of people's lives and health, as well as its all-out efforts and achievements in epidemic prevention and control. The understanding and support expressed by these party organizations and regional party coalitions are concrete examples that show all the countries of the world are one family and that mankind shares the same future as a community. Therefore, the CPC will continue to strengthen exchanges and cooperation with such international organizations of political parties. Thank you.

Hu Kaihong:

The press conference concludes here. Thank you to our speakers. Thank you everyone.

.

Speakers:

Du Bin, director of Medical Intensive Care Unit, Peking Union Medical College Hospital

Qiao Jie, academician of the Chinese Academy of Engineering and president of Peking University Third Hospital

Cao Bin, vice-president of China-Japan Friendship Hospital

Li Haichao, vice-president of Peking University First Hospital

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office of China

Date:

March 4, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media, good afternoon. Welcome to today’s briefing. Since the epidemic broke out, China has waged a united battle against the coronavirus with the most comprehensive, rigorous and thorough measures. Thanks to these arduous efforts, China has produced visible progress. Recently, my colleagues and I have received a lot of questions and interview requests concerning China’s response to COVID-19. In order to help you have a better understanding, today we’ve invited four experts who have participated in the frontline treatment work in Wuhan.

Let me present them to you: Professor and Doctor Du Bin, director of the Medical ICU, Peking Union Medical College Hospital; Ms. Qiao Jie, academician of the Chinese Academy of Engineering, and president of Peking University Third Hospital; Mr. Cao Bin, vice-president of China-Japan Friendship Hospital; and Mr. Li Haichao, vice-president of Peking University First Hospital.

In today’s briefing, we have set up special arrangements for foreign correspondents in Beijing to ask questions to the experts in Wuhan, with 5G connected telecommunications. The entire session will be conducted in English.

We will open from short introductions by the experts. First, let us invite Professor and Doctor Du Bin, please. 

Du Bin:

Good afternoon, ladies and gentlemen, I am Dr. Du Bin, or Bin Du ­– either is fine. I’m from the Peking Union Medical College Hospital. I came here to Wuhan on Jan. 18, and have been working here since then. As a member of the national expert team, the responsibility of me and my colleagues is to review every individual case of people who are critically ill with COVID-19. We then discuss treatment plans with physicians, as well as provide feedback and suggestions to local and national healthcare authorities about treatment strategies and other coping strategies to fight against COVID-19. Thank you.

Xi Yanchun:

Thank you, Professor Du. Next, let’s invite Ms. Qiao Jie, please.

Qiao Jie:

I’m Professor Qiao Jie from the Peking University Third Hospital. Peking University Third Hospital is one of the top university hospitals and also a public hospital directly under the National Health Commission of China. At noon of Feb. 1, I received an instruction to travel to Wuhan as soon as possible. I left Beijing and arrived at Wuhan at 9 p.m. the same day. As the leader of this special task team, my responsibility was to organize doctors, nurses and supporting professionals to establish a new ICU ward. One day later, on Feb. 3, we successfully completed our preparations and were ready to serve and save lives. We have tried with our every effort to increase the treatment and cure rate, while reducing the rate of infection and mortality for severe COVID-19 patients.

For this mission, we, together with Peking University, and members from three top ranking comprehensive hospitals together, and I’m the chief, responsible for it, including 90 doctors and 360 nurses, provided medical services at Sino-French New City Branch of Tongji Hospital with more than 11,000 beds for the treatment of severe COVID-19 patients.

As you may be aware, I’m also the director of the National Center for Healthcare Quality Management in Obstetrics. So, I also have responsibility to survey the infection of pregnant women, guarantee delivery procedures, and prevent mother-baby vertical transmission.

So, I’m here and ready to answer your questions. Thank you.

Xi Yanchun:

Thank you very much, Professor Qiao. Professor Cao Bin, it’s your turn.

Cao Bin:

Thank you. Good afternoon, my name is Cao Bin. I’m a pulmonary physician, who focuses on respiratory tract infections. During the last 20 years, I have experienced the SARS pandemic, H1N1, and human infections caused by H5N1 and H7N9. We also have cases of adenovirus pneumonia. Today, we have another coronavirus infection: COVID-19.

I have been working in Wuhan for around two months. I have been proud to be a doctor and researcher working with my colleagues during this time. We have left our families, but we are honored. We have been working day and night, but we are honored. We are honored because we can help. China has encountered many disasters during its long history. So, again, I’m sure we can overcome this coronavirus, just as we have done previous times.

I would like to share a poem with you all. The poem was written about 3,000 years ago. I believe that everyone in this room, in Wuhan, and in China can be moved and motivated by this poem. The poem is actually a battle song.

(Cao Bin reads a poem in Chinese)

The name of the poem is “If you have no clothes.” I will share with you a brief translation.

If you have no clothes,

my brother,

I will share with you.

If you have no food,

my brother,

I will share with you.

If you have problems, if you have an illness,

my brother,

I will always be together with you.

Today, I would like to salute every nurse and doctor, for their contribution, especially those who have lost their lives. Thank you.

Xi Yanchun:

Thank you very much, Professor Cao Bin. I’m sure your words represent how all of the doctors feel. So, thank you very much. Lastly, Professor Li Haichao, please.

Li Haichao:

Good afternoon, ladies and gentlemen, I’m Dr. Li Haichao from Peking University First Hospital. I arrived in Wuhan together with the third batch of the medical team from Peking University. I joined my colleagues who came here earlier and I am responsible for the treatment of critically ill patients in a ward of Tongji Hospital.

I have worked with Professor Qiao in the same building. I am a pulmonologist, and I had taken part in the SARS treatment in Beijing in 2003. I believe, because of my specialty and the experience of SARS, it might be helpful for me to fight against the new coronavirus.

The team of our hospital consists of 135 members, among which 30 are doctors who specialize in respiratory and critical care medicine, intensive care medicine, some other disciplines of internal medicine, infectious disease and thoracic surgery. We have two experts of infection control and one staff member in charge of logistic support and communication. We also have 102 nurses, some of whom have very good experience in respiratory and surgical intensive care units.

Until now, we have admitted 63 patients into our new ward. Fortunately, most of them have been discharged. Today, we only have 10 patients left in our ward, and all of them are in the recovery period. I believe that they will be discharged in the near future.

So, I’m very glad to be here to share my understanding about COVID-19 and my experience. Thank you.

Xi Yanchun:

Thank you very much, Professor Li. And great thanks to all of the experts. Thank you for what you have done for the patients here, and also what you have done for the people.

So now the floor is open for questions. May I remind you to please identify yourself before raising questions. Also, please speak clearly and slowly, because we are a thousand kilometers away. Okay, please raise your hands.

Xi Yanchun:

Okay, the gentleman in the first line in blue shirt.

Reuters:

Thank you. This is a question from Reuters. Actually, two questions. First, how many cases are there of people in Hubei who recovered and then were later were diagnosed with the virus again? Is there a chance that this will keep recurring? And my second question: last month, a 70-year-old man in Shennongjia was tested positive for the virus. He visited his sister in January, but did not show any symptoms until 27 days later. How should we deal with such cases that have long incubation periods? How many of such people are there? Thank you.

Du Bin:

Thank you, sir. Thank you for your questions. I’ll answer the second question first. Regarding the patient in Shennongjia, I actually have no idea as to how this patient behaved and the details of the case. But I will address the long incubation period, which hasn’t been reported nor discovered, either here in Wuhan, Hubei, other provinces or other countries. According to most publications, right now we understand that the median incubation period is five to seven days. The longest incubation period is 14 days, and there’s no data showing that an even longer incubation period has ever existed.

And for your first question, the answer is yes. There have been several cases reported about people who have tested positive for the novel coronavirus RNA after being discharged or after multiple negative results. We know that there are such cases in Hubei and Wuhan as well. But we have no idea how many of them are there. More importantly, according to current research results, there’s no evidence that these patients, after being tested positive again for the coronavirus RNA, have the ability to transmit the virus to other people or to their close contacts. There’s no evidence.

Xi Yanchun:

Thank you. Ok, next question. Please. The gentleman in the middle area in black suit, second row in the middle area.

CGTN:

Thank you. I’m from CGTN – China Global Television Network. So, my question is, it has been two months since the coronavirus was first reported in China, and we know that since then, a lot of measures have been taken by the government to contain the spread across the country.

Now, looking back, what kind of lessons can we draw from this fight against the disease? Thank you.

Qiao Jie:

Thank you for the question. Actually, in my opinion, two things are very important. First, it is key to mobilize all resources, and second, we must diagnose and control the disease scientifically.

First, I’ll address mobilizing all resources. We actually not only need medical staff, such as doctors and nurses, but also social workers, logistics staff and construction workers, and so on. All are important for jobs like establishing mobile cabinet hospitals. It’s really amazing because there they can treat more mild patients. Most of the patients are mild and need to [be] isolated and observed the changing conditions. If changed from mild to severe, [patients] can transfer to our side, because our task is treatment for the severe patients.

We are happy for the treating and discharging of some patients back to home and back to health. And some severe patients became mild, but also some passed away. We need time to realize the mechanism of this virus infection.

And also we have already established different treatment methods like the oxygen giving and using of non-invasive and invasive ventilator and also tried to use some drugs and other treatments. But we need time to survey for that, so we organized specialists together and even the remote consultant for improved treatment results. So we need scientific control of the disease. Thank you.

Xi Yanchun:

Professor Cao.

Cao Bin:

Thank you. I think it is a good question.

In no more than two months, the disease, the COVID-19 is not only a Wuhan disease, and it's not only a China disease, but a global disease. The question is what lessons, but I want to say what achievement the Chinese doctors and the scientists made during the last two months! Not so many days. I think the most important and the first achievement is in science. If we want to control the disease, we have base on science. I believe that many doctors, researchers, and scientists in Wuhan, and in other cities of China, contributed a lot to the knowledge of the new disease.

Everyone has to remember that it's a new disease. If we have a new disease, it takes time for us to get to know the disease. We get to know the disease through several steps. The first step is that the doctors collect the clinical data, the clinical signs, the laboratory findings, and the chest X-ray and CT scans. This is the first step. The second step is the pathology. A good news is that the pathologists in Wuhan city have done autopsy, and the pathology data helps the clinicians to know more about the disease.

The third is the basic science. It's the first time that the Chinese scientists find the cause of the disease. When we look back to the end of December, nobody knew what the disease is. At that time we called the disease “viral pneumonia with unknown etiology.” But now we have the cause of disease. The disease is caused by a novel coronavirus, and now is named by the international society as SARS-CoV-2. And the disease, we call that COVID-19. I think it is the first achievement that China made during the last two months.

The second achievement is the openness of the Chinese government. From the very beginning, the Chinese government has had face-to-face connection with the WHO, and I'm the person to introduce our clinical findings to WHO from the first cohort of the cases. And I also got e-mails from foreign physicians, whom I’ve known for many years. They told me that, “Cao Bin, I got to know the disease through your publication.” They also told me I’ve helped them.

For example, I helped the American doctors to publish the first paper in “Blue Journal.” In “Blue Journal,” they introduced to the American citizens what the disease is like. I think it is what we have done during the last two months. Thank you.

Xi Yanchun:

Professor Li Haichao. Would you like to add some words?

Li Haichao:

The task of our team is to treat the critically ill patients. So my experiences are in the following aspects.

The first one, we must set up the multiple-discipline team, because it's a very severe pneumonia, and it can develop to be ARDS. The severe situation needs multiple-disciplined doctors to deal with the various situations.

The second one is to keep the oxygen supplement, which is very important. The oxygen therapy and the reasonable use of ventilator are very important.

And the third one, just as Professor Cao said, it's a new disease. So in this area, we set up a mechanism for sharing knowledge and experience between the colleagues from the different hospitals. It's very helpful for us to know about this disease. Thank you.

Xi Yanchun: 

Professor Du, anything to share with us?

Du Bin: 

It's a very difficult and tough question for me, because there are too many things and too little time to think about it. However, if I could have the chance to go back, I would say, I’ll try more aggressively the invasive mechanical ventilation in all patients with clinical deterioration in terms of the respiratory failure or hypoxemia.

In addition, I will try more aggressively to propose my suggestion to the local and national healthcare authorities to convene all my ICU colleagues, including the doctors and nurses, to work together in some designated hospitals to establish an intensive care unit to cope with the critical care search or the search of the critically ill patients.

And I do believe such kind of approach can help our patients, especially those critically ill patients to recover more rapidly. Thank you.

Qiao Jie:

COVID-19 gives us many lessons to learn. It is not only the respiratory tract disease. Actually, some patients had complications like vascular disease， hypertension, diabetes and kidney failure or something. So, we need to combine together specialists to treat this complicated condition.

Xi Yanchun:

Thank you. Next question, please. The gentleman in the first line in black shirt.

Hindustan Times:

From the Hindustan Times newspaper. In the last couple of days, there have been spike in cases in India. Keeping in mind that both India and China have similarly densely populated cities and regions, what advice would the doctors have for their colleagues back in India, [and] the health authorities that are looking into this? How can this be tackled and stopped from being escalating into an epidemic in India?

Qiao Jie:

Thank you for the question. Actually, China and India are the two most important countries in Asia. And we have some similarities, aspects like the large population and habits of people like [family activities together]. And also the medical system and technique—there is some room to improve. So, I think we have something to share. In my experience in hospital treatment, actually we have no enough medical staff to deal with the infection disease. Most of staff have no or lacked the experience for treating the infection disease combined together with this pneumonia and other complicated conditions.

So, first we need to train more medical staff for facing this special COVID-19 disease—mild and severe, different [types of] training. And also how to protect themselves. Even putting on and taking off protective clothing also need education and training. And as for the equipment—need to prepare first, invasive or non-invasive. [The equipment] we need for treatment of different diseases need to be prepared first.

The third thing is room preparation, like the negative pressure ward. It’s difficult to change completely, but [we] can practically. For example, by using high power and exhausted fan in the ward, we can change the airflow and [increase] safety for the patient and the medical doctor and nurse.

And as for the training, for the community populations, even wearing mask and washing hands, need step-by-step training, and it can isolate the disease epidemic. It's all very important. Thank you.

Xi Yanchun:

Next question. The middle area, the gentleman in the fourth line.

TBS:

Hello, I'm from TBS. Japanese TV station. I'm sorry, I have three questions. First one is that, unfortunately, doctors in Wuhan passed away, even though some of them are very young. How would you analyze the reason? Second one is, it's been reported in Japan, that infection in the hospital is occurring in some places. With your experience, how do you prevent the infection in hospital? Third one is, if you have experience to cure such patients, is there any difference varying coronavirus and SARS? Thank you very much.

Du Bin:

I’ll take the first two questions and leave the last one to my colleague, Dr. Li.

As to your first question. Yes, we know that among all the non-survivors of COVID-19, that although most of them are elderly people, there are some younger deaths, including doctors and [people in the] general public.

We know that although they are not elderly—which is the well-recognized risk factor—but some of them, if not all, do have some comorbidities, or underlying diseases, such as hypertension and diabetes, which are very common even among the younger generation in China, according to the previous studies.

Moreover, as I mentioned before to the last question, that the unnecessary prolongation of the non-invasive mechanical ventilation, as well as prolonged, or long-term, high dose corticosteroids are, in my mind, the major reason of deaths in this younger generation. Because there are more harms than benefits, such as the nosocomial infection, such as the weakness, such as the barotrauma, or high hyperglycemia, et cetera.

As [for] you second question concerning the infection control within the hospital. I think the key word is “plan.” You must have a plan for hospitals in Japan. I would say you must have a plan for every suspected patient going to a fever clinic, going to the general outpatient clinic, or even inpatient department. And you must have a plan for how to detect the suspected cases according to the clinical manifestations, [according] to the laboratory tests such as lymphopenia, or according to the CT scan, as mentioned by Dr. Cao. And you must be able to perform laboratory confirmation for suspected cases. You must have a plan to isolate suspected individual cases before confirming or ruling out the diagnosis. You must have a plan to educate and train health care workers within individual hospitals to prepare themselves for the cases. And you must have a plan to prepare not only space but also supplies, such as personal protection equipment for all health care workers involved or those who may come in contact with suspected cases. Thank you.

Cao Bin:

Thank you for the question. Your third question is what is the difference between SARS-CoV and this new coronavirus? I will start with the similarities. Both SARS-CoV and the new virus belong to the coronavirus family. From the genetic sequencing analysis, we have found that the viruses are about 78% similar. When you look at the clinical features of the two diseases (SARS and COVID-19), both viruses can mainly cause pneumonia.

When we look at pneumonia, the similarity is there. They are both viral pneumonia, which means that when we look at a chest CT scan, both diseases cause ground glass opacity of both lungs. This is the similarity. When we look at the clinical features and laboratory findings, both diseases have common features, such as the normal white blood cells and, more commonly, we find lymphopenia and the increased liver enzyme, or that some of them may develop respiratory distress syndrome.

When you look at the similarities, you may find that SARS is very similar to COVID-19, but there are differences between the two viruses. And there are differences between the two diseases. First, let's look at the case fatality ratio for SARS. The case fatality ratio is round about 10%. But if you look at COVID-19, if we look at the cases outside Hubei province, the case fatality ratio is less than 1%.

When we look at the case fatality ratio in Hubei province, the number is around 3% to 4%. So, it seems that COVID-19 is less severe compared to SARS. But the bad news is that COVID-19 is easily transmitted. And when we look at the documented cases of SARS and COVID-19, we can easily find that the new virus is more “successful” compared to the SARS-CoV.

I don't know the exact number of confirmed cases in Japan, but I learned that in Korea, the case number is over three thousand. There is a rapid increase in cases in Europe, including Italy, Spain, and Germany. We can also find cases in the Middle East, such as Iran. You can find that COVID-19 is more widely distributed around the world. When we look at the pathology, and when we look at the mechanism of the disease, it seems that the SARS-Cov-2 virus can easily invade the lungs and can easily invade other organs, including the heart and liver. This new virus is a real threat to human beings. Nobody knows if the disease will spread to other areas of the world. But I believe that doctors, researchers, and scientists all over the world should work together to fight against this new disease. The war is not over. Thank you.

Xi Yanchun:

Okay, Professor Li.

Li Haichao:

Regarding the question about SARS and COVID-19, I have very deep memories of SARS, which happened 17 years ago. I worked in a hospital in the suburb of Beijing. We had totally124 beds in the hospital, and six ICU beds. In my opinion, there are some differences between COVID-19 and SARS. Now, in our ward, most of the patients are above 60 years old and some of them are above 50 years old, there are a few young people. During the SARS, in our ward there were a lot of young people, so the first characteristic of COVID-19 is that the patients are older than those with SARS. The second characteristic is that some COVID-19 patients have very severe illnesses, because they are middle age and old persons, and they have complications. They have very severe hypoxaemia and severe ARDS. A lot of them need non-invasive ventilation or mechanical ventilation for a long time. The patients have a lot of preexisting conditions, such as hypertension, coronary heart disease, diabetes, and COPD. It is also very common with disorders of electrolyte and imbalance of acid-base. There are so many problems you must face. It’s very severe. The 3rd character is [I call it] “slow”. One “slow” is that some of them have a very slow onset. They might have a mild fever or mild symptoms of respiratory tract, such as a mild cough, but 10 days later, or maybe more than two weeks later, they have exacerbations. The situation goes bad rapidly. The onset is slow, but exacerbation is quick. Another “slow” is that some patients became better, and the situation had been controlled, but they still have exertional dyspnea. When they do some exercises, saturation of oxygen decreases rapidly. They need a long time to recover. Maybe I think it's due to their old age and some comorbidities.

So it's very important to care for the patients with hypoxaemia, because you don't know when and how there could be an exacerbation. So you must keep a close eye on symptoms, saturation of oxygen, CT scan, and some other factors about the inflammation. If the situation gets worse, you must pay more attention to them. Thank you.

Xi Yanchun:

Ok, next question. The gentleman in the fourth line in the middle area, it is your turn to raise the question. Just now, you already have the mic.

Wall Street Journal:

Yes, thank you very much from the Wall Street Journal. First, a question for Mr. Cao Bin. You co-wrote a study that was published in The Lancet medical journal, which gave December 1 as the date for the symptoms’ onset in the earliest recorded case. I'm sure that you know that the Wuhan government has said that December 8 was the date for the symptoms’ onset in the first confirmed case, and a few other studies have also cited December 8. I was wondering if you could just clarify the difference between those dates. Is it that the December 1 case was just clinically diagnosed and not confirmed? And the second question for all of you is: What have you had been able to learn from the samples that were taken from the Huanan Market early on? And is it correct that some of that evidence was lost when the wild animals and the meat from them were destroyed at the time when the market was closed? Thank you.

Cao Bin:

Thank you for your questions. I appreciate your interest in our paper published in The Lancet. The paper was published on January 24, on the day of the Spring Festival. Yes, many foreign doctors have told me that they got to know the disease through our publication in The Lancet. In this paper, we introduced the clinical features of the first 41 cases hospitalized during December and early January.

As a pulmonary physician, my job is to collect clinical data. Why did we collect these clinical data? The aim of our job is to prepare the first version of the treatment guideline for this new disease. When we wrote the first version of the guidelines, we used the name “viral pneumonia with unknown etiology.”

But since then, as you may already know, China has published seven versions of the guidelines. All the serial guidelines were based on our first-line observations, collection of clinical data, laboratory findings, chest x-rays, and CT scans. When we collected clinical data of the onset of symptoms, it was self-reported by the patient. From our cohort, I have double-checked my database with the patient’s record, which noted that he felt ill on December 1.

I'm not sure if we are talking about the same case. But for a new disease, as I have mentioned, it will take many days to get to know the illness, including its incubation, severity, and optimal treatment choice. There are many angles to answer a scientific question.

I'm a clinician and pulmonary physician. This is what I can tell you now, but I would like to introduce more of our research in the future. Thank you.

Xi Yanchun:

Okay. For the second question, Professor Du would like to give an answer.

Du Bin:

Sure. Thank you for your second question concerning the closing of the Huanan Seafood Market. As far as I know, the decision to close the Huanan Seafood Market is based on clinical information, such as that provided by Professor Cao just now.

In the initial cohorts of patients, at least 60% of them had a history of contact, or visited the seafood market. And as far as I understand, the decision to close the seafood market goes along with the evidence. Although, subsequently, I think the CDC staff found that the animals, the wildlife in the seafood market, were tested positive for the RNA of the novel coronavirus. I'm not aware of any evidence to show if they kept all the meat or animals within the market, or if some of them have been destroyed or not. I think if you have the chance, you'd better go to the government to get more detailed information. Thank you.

Xi Yanchun:

Okay, because time is limited, let's give the very two last chances to raise questions: one to a foreign journalist, another to a Chinese journalist. The lady standing up, you have the chance.

ITV News:

Thank you. Debi Edward from ITV News. How confident are you that China has turned a corner in its battle against the coronavirus? And is it still possible that we could see another spike?

Secondly, I know you've answered a couple of questions on this nature already, but what would be your advice to the United Kingdom, as we see a rise in cases starting there?

Du Bin:

I'll take the question. As for the first question, if my interpretation is correct, you are asking whether or not there will be another spike of new cases. I would say, there's always a possibility. However, according to what has been reported by the Chinese government, or even local governments, we understand that it is not only in Wuhan, in Hubei, but also in other provinces in China, that the numbers of newly diagnosed as well as suspected cases have been decreasing sharply and consistently.

Another piece of evidence is that when we had the chance to visit a lot of hospitals – designated hospitals, as well as non-designated hospitals – almost all our colleagues told us that they have vacancies or empty beds. They have more and more empty beds, after discharging patients who recovered from the illness. So, according to my own judgment, it is true that we have fewer and fewer patients, even in Wuhan and Hubei province.

As for your second question: Do we have any suggestions for the United Kingdom or other countries with rising numbers of new cases? Again, “plan.” The keyword is “plan.” Know how many cases you have. And what is the plan to cope with the disease or the patients – the laboratory confirmed cases, as well as their close contacts. Where should close contacts be kept and how should you identify probable or definite cases amongst the close contacts? I do believe it's a very tough job, but it has to be done. And it has to be done not only by the health care workers, but also by the government. The government means not only the health care authorities. Other departments have to be involved, such as public security — I mean the police — such as the transportation department or other departments. They have to work together. I think that's the only way to control the epidemic, not only in China, but also in other countries. Thank you.

Xi Yanchun:

Okay. Any more comments? No? Okay. Okay, the last question please. The gentleman in the middle area, in the third line. Yes, in the middle area.

China Daily:

A question from China Daily. Considering the declining trend of new cases and the rising numbers of recovered patients in China are positive signs, what can China share with the world in terms of fighting the coronavirus? And currently, what can China do to help the international community contain the epidemic? Thank you.

Du Bin:

Thank you very much again for your question. It actually reminds me of a message sent to me by one of my high school classmates earlier today, which was a quotation from a French novel named La Peste, or The Plague, by a French novelist whose name is Albert Camus back in the 1940s. During conversation or discussion with a journalist, the leading character in the novel Dr. Rieux, said it's nothing about heroism, but honesty. With that in my mind, the only approach, the only way or the only weapon to fight against the plague is honesty. This can be defined as doing your job.

Doing your job might mean different things. From the government’s point of view, it means to share detailed information of newly identified cases and suspected cases with the general public; to educate the general public about the disease and how to prevent it; and to coordinate or to organize all the resources, including human resources and all other equipment and devices that are necessary for treating or preventing the disease. Doing your job, from a physician’s point of view, means to try our best to make the correct diagnosis and to treat patients in the correct way in order to save their lives. Doing your job, from the general public’s point of view, means to comply with the professional guidance, such as: to stay at home to self-quarantine if you are a close contact, to obey all the regulations and rules set by not only the government, but also the health care professionals in order to control the epidemic. It is my belief that the combination of all these efforts from all aspects is crucial to the successful control of the epidemic, not only in China, but also across the whole world. Thank you very much.

Cao Bin:

Thank you for your question. I think that the Chinese clinicians have confidence in sharing our latest clinical research data with the international society. As all of you know the WHO R&D Blueprint, the priority of anti-viral therapeutics. On the list, there are three priorities: First is remdesivir; second is lopinavir; and third is the monoclonal antibody to this new coronavirus. Chinese doctors are leading the top-two priority antivirals.

I believe that the whole international society, including the WHO, is eager to know the results of the clinical trials in the Chinese mainland. The good news is that the first trial – the lopinavir clinical trial – has finished. Chinese doctors will share the new results with the WHO and the international society as soon as possible.

There are two remdesivir trials – remdesivir-1 and remdesivir-2. In remdesivir-1, we include those with mild to moderate pneumonia cases. And in remdesivir-2, we enrolled the severe and critical pneumonia cases. It seems that both trials are progressing successfully. As soon as we have finished the trials, we will very happily share the data with the international society.

I believe that the clinical trials are a great contribution by Chinese doctors to the international community. Thank you.

Qiao Jie:

Okay, just a few words because time is limited. Thank you for the question. Professors Du Bin and Cao Bin already mentioned the key points. I’d just like to add one because big data sharing is also very important, given the different kinds of patients and limited numbers.

One example is pregnant women, which is my field. Until now, we have gradually accumulated a hundred cases. Now we can see the good news that pregnant women are usually mild cases if without complications like pregnancy-induced hypertension. Another good news is neonatal throat swabs are negative, so there is no evidence for mother-to-baby vertical transmission. But, we also have a few neonatal infections because of close contact with infected relatives. So, we also need to isolate newborns for two weeks for safety concerns. I believe that as more and more cases accumulate and we analyze the cases, more evidence can show us how to treat and also give the right recommendations and suggestions for the patients. We cooperate together, then the fight will be a success.

Xi Yanchun:

Lastly, Professor Li, please.

Li Haichao:

I think we are facing a situation similar to 17 years ago. It (SARS) is also a virus infection without effective anti-virus drugs, without vaccine. So, the old methods are very useful: such as keeping strict isolation when the community epidemic occurred. You must set up methods to cut down transmissions. You must decrease the total number of patients, because if the number is too large, that means there are a lot of ill patients. That means you may have higher mortality. And also, if there are too many patients, I think centralized management for these patients is useful, because you must keep the patients in the area — you can make a close observation of the patients and identify the severe and very severe patients in time, then to pick up them and to treat. That’s my suggestion. Thank you.

Xi Yanchun:

Okay, great. Thanks again.

Finally, I'd like to say that we need to be aware that the situation in China remains complicated. We will work relentlessly to consolidate our current results. We are confident that we can and will win the fight. On the other hand, the coronavirus is now becoming a common challenge facing all mankind all around the world.

While fighting the epidemic at home, China will continue to strengthen cooperation with the international community to jointly respond and play an active role in the global fight against the epidemic. Today, our four professors shared and introduced much professional and valuable advice.

Thanks again to all of you for taking time to join us during your very intense work in Wuhan, and also take care of yourself.

Thanks, and thank you all. That's the end of the briefing. Thanks.

.

Read in Chinese

Speakers:

Chen Jingyuan, director general of the Medical Service Bureau of the Logistic Support Department of the Central Military Commission (CMC);

Zhao Haifei, deputy director general of the General Planning Bureau of the Logistic Support Department of the CMC;

Zhang Tianxiang, deputy director general of the Transportation and Mobility Bureau of the Logistic Support Department of the CMC;

Wu Qian, director general and spokesperson for the Information Office of the Ministry of National Defense.

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

March 2, 2020

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference organized by the Joint Prevention and Control Mechanism of the State Council. We have invited Chen Jingyuan, director general of the Medical Service Bureau of the Logistic Support Department of the Central Military Commission (CMC); Zhao Haifei, deputy director general of the General Planning Bureau of the Logistic Support Department of the CMC; Zhang Tianxiang, deputy director general of the Transportation and Mobility Bureau of the Logistic Support Department of the CMC; and Wu Qian, director general and spokesperson for the Information Office of the Ministry of National Defense. They will brief you on the efforts of China's armed forces in fighting COVID-19 and take questions.

First, I will give the floor to Mr. Chen. 

Chen Jingyuan:

Ladies and gentlemen, friends from the media, good morning. First, I would like to thank the media for your support and coverage of the military's efforts in helping fight the epidemic.

Since the outbreak of COVID-19, the Central Committee of the Communist Party of China (CPC), the Central Military Commission (CMC) and Chairman Xi Jinping, have all prioritized the prevention and control of the epidemic and stressed the priority of safeguarding people's life and health. Chairman Xi is personally leading, commanding and deploying all available forces in the battle against COVID-19 outbreak. He has presided over multiple meetings, visited the community to inspect and direct the control work, and issued clear requirements. He made important instructions to the military on the prevention and control work, and stressed that the armed forces must work under the leadership of the CPC Central Committee and CMC, keep the mission firmly in mind, shoulder their responsibilities, fight the hard battle and actively assist local authorities in fighting the epidemic.

When an epidemic breaks out, a command is issued. It is our responsibility to prevent and control it. The military has resolutely implemented Chairman Xi's important instructions, promptly engaged in epidemic prevention and control work, and acted as the protector of people's life and health. We are joining hands with the whole nation to overcome the difficulties, and actively playing the role of vanguard and commando. We will resolutely win the people's war against COVID-19.

First, the CMC has intensified its leading and commanding efforts. Since the outbreak of COVID-19, the CMC quickly put into place an emergency response mechanism, setting up a leading group on novel coronavirus prevention and control and establishing a joint prevention and control mechanism of the armed forces on public health emergency. The CMC has also conducted research and made deployments regarding epidemic prevention and control as well as providing assistance to virus-hit regions. In addition, the CMC has actively participated in the works of the State Council's joint prevention and control mechanism and sent personnel to join the Central Guidance Team in Hubei. A frontline command and coordination team of the armed forces has also been established to intensify the coordinated efforts with local strength, and to provide further guidance for military medical staff.

Second, the CMC quickly sent military personnel to assist with the battle against COVID-19 in Wuhan. Military medics were organized the moment they received orders, and dispatched to Wuhan via air, rail and road. Since Jan. 24, the eve of Chinese Lunar New Year, China's armed forces have dispatched over 4,000 medical professionals in three groups to assist in the fight against COVID-19 in Wuhan. They formed a relief force comprising a battlefront leading group, joint logistic support units and frontline medical worker units. Approved by Chairman Xi Jinping, the first group of 450 personnel left for Wuhan on Jan. 24. A week later, on Feb. 2, also approved by Chairman Xi Jinping, the second group of 950 personnel were dispatched to Wuhan to join the first group and were tasked with treating patients in Huoshenshan Hospital. Approved by Chairman Xi Jinping, the third group of 2,600 personnel left for Wuhan on Feb. 13 to join the battle against COVID-19. These "heroes in harm's way," as they have been widely dubbed in the media, have fully demonstrated the bravery of the Chinese people's armed forces, and shown their political integrity of pledging loyalty to the Party and the people.

Third, treating patients. The military medical system has a glorious history and remarkable experience in addressing similar situations, including the fight against SARS, assisting Africa in the battle against Ebola, and dealing with emergencies and disasters. This time, medical workers of the armed forces continued to demonstrate their ability to serve the people and save lives. The military medics coordinated their efforts with local civilian medics, adopted a science-based way of epidemic prevention and control, and treated patients with targeted measures, in order to raise the rate of receiving patients and the rate of patient recovery. They went all out to treat patients. Four military hospitals stationed in Hubei, including the General Hospital of the Central Theater Command of the PLA, have been working on the frontlines. So far, 63 designated military hospitals have provided nearly 3,000 beds, and more than 10,000 medical professionals. As of March 1, Huoshenshan Hospital, Wuhan Taikang Tongji Hospital, and the Optical Valley Campus of the Maternity and Child Healthcare Hospital of Hubei Province have received a total of 3,467 severe patients, 689 of whom have recovered. The designated military hospitals and medical teams assisting Hubei have received a total of 4,450 patients so far, 1,000 of whom have been discharged. In addition to treating patients, military medics have also paid attention to their own protection, so there are no infected cases among them so far. Meanwhile, the military has organized experts on the frontlines to summarize their treatment experiences, in order to continue to optimize treatment plans and further improve treatment.   

Fourth, comprehensive support. In the early days of the outbreak, the joint prevention and control mechanism of the armed forces sent Wuhan 400,000 medical masks, 8,000 protective suits, 50 sets of positive pressure respiratory hoods, and 2 sets of negative pressure isolation stretchers to ensure urgently needed medical treatment. Meanwhile, the Air Force dispatched 30 transport aircraft to send medical workers and supplies to Wuhan. As of Sunday, the Central Theater Command of the PLA has sent 130 transport vehicles and 260 people to assist the transportation of life supplies. They have transported over 8,500 tons of life necessities and 23,600 sets of protective gear. The military has also dispatched four helicopters to transfer 6.5 tons of medical supplies. Also, 200,000 militiamen were dispatched from 28 provincial-level regions to assist local authorities in completing tasks such as management of outsiders, site disinfection, material transportation, and epidemic prevention awareness improvement.

Fifth, scientific research. To respond to the major public health emergency, we made the health of the people our top priority and worked hard to trace the origins of the virus, control the outbreak, treat patients, and develop anti-viral drugs. We pooled together the strength of enterprises, universities, research institutes and end users to drive research progress. Military units have undertaken a series of major projects granted by the Ministry of Science and Technology for epidemic control and prevention. Military medical experts have arrived in Wuhan to launch scientific research and guide the work here. The COVID-19 nucleic acid test kit, jointly developed by the Academy of Military Medical Sciences of the PLA and local researchers, was approved by the National Medical Products Administration on Jan. 28. Its antibody test kit was approved by the military on Mar. 1 and swiftly put into clinical practice. The Fifth Hospital affiliated to the China PLA General Hospital has integrated TCM and western medicine to treat patients with COVID-19, which has proven effective and safe. Other works such as development of drugs and vaccines are also being carried out.

The COVID-19 outbreak is a major public health emergency with the fastest spread, the widest range of infections, and the biggest difficulty in prevention and control since the founding of the People's Republic of China. In face of this rare and immediate crisis, the PLA has shown once again their strong sense of responsibility to the country and people. The progress made in the prevention and control work has once again demonstrated the notable strengths of the leadership of the CPC and socialism with Chinese characteristics. We believe that under the strong leadership of the CPC Central Committee, the Central Military Commission and Chairman Xi, the military and civilian sectors working together will win the fight against the outbreak.

Now the floor is open for questions.

Hu Kaihong:

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

Economic Daily:

Amid the battle against the COVID-19 outbreak, the people's armed forces have given the people a sense of security. You just said that the armed forces have dispatched more than 4,000 healthcare professionals in three batches to support Wuhan in the fight against the virus outbreak. Could you please elaborate on where they have come from and what they have been doing so far? Thank you.

Zhao Haifei:

Under the command of Chairman of the Central Military Commission Xi Jinping, on the night of Jan. 24, the Chinese New Year's Eve, a total of 450 medics from three military medical universities of the Army, Navy and Air Force of the PLA were rapidly dispatched to support Wuhan. The three medical teams, each consisting of 150 medical personnel, traveled to Wuhan from Chongqing, Shanghai and Xi'an to treat locally confirmed COVID-19 patients. Later, another 950 medical personnel were dispatched to Wuhan from hospitals affiliated to the Joint Logistic Support Force. Starting from Feb. 3, they were tasked with treating confirmed patients in Huoshenshan Hospital, together with the 450 medics who were previously sent to Wuhan.

In the face of the developing epidemic, a total of 2,600 additional medical personnel from the armed forces have been dispatched to Wuhan since Feb. 13. Those reinforcement medics come from healthcare institutions affiliated with the Army, Navy, Air Force, Rocket Force, Strategic Support Force and Joint Logistic Support Force, as well as the Chinese People's Armed Police Force. They have followed the operation model of Huoshenshan Hospital and been tasked with treating confirmed patients in Taikang Tongji Hospital and the Guanggu branch of Hubei Maternity and Child Health Care Hospital. Most of the three batches of military medical workers are professionals in departments of infectious disease, respiratory medicine and critical care medicine. Among them, many participated in the fight against SARS in Xiaotangshan Hospital in Beijing or in the anti-Ebola missions in Sierra Leone and Liberia, so they have rich experience in treating infectious diseases and are capable of conducting their mission effectively. Thank you.

CRNTT:

As the military medical teams have been in charge of Huoshenshan Hospital for a while now, how is the hospital running? How many COVID-19 patients have been hospitalized there? What treatments have you adopted and how many recovered patients have been discharged from the hospital? Thank you.

Chen Jingyuan:

All systems of Huoshenshan Hospital in Wuhan are running well. With 33 measures adopted to regulate medical treatment, nursing and safeguards, the hospital has seen increases in its admission and recovery rates, as well as declines in infections and mortality cases. Through the use of scientific approaches, experts and learning – especially from the experience accumulated in curing patients – we have improved our diagnosis and treatment plan using individualized and targeted treatment for different patients depending on their conditions. A diagnosis and treatment model has been developed combining Western and traditional Chinese medicines, nutritional therapies, psychological consultation and recuperation training. A 5G-powered remote diagnosis and consultation system between the temporary hospital and the Chinese PLA General Hospital has been implemented to enable experts involved to study, discuss and assess the condition of every single patient before designing targeted treatment methods.

As of yesterday, Mar. 1, a total of 1,597 COVID-19 patients have been admitted to the hospital and 611 of them have been discharged after recovering. The hospital has continued to increase its admission of patients in severe condition. In addition to the two severe case wards, access to the general wards has also been opened to seriously ill patients. Thank you.

China Daily:

We have noticed that since the outbreak of the epidemic, many foreign governments and NGOs have offered assistance to China. Have any foreign defense departments or militaries done so? Thank you.

Wu Qian:

China has taken the most comprehensive, rigorous and thorough measures to fight COVID-19, actively engaged in international cooperation on the epidemic prevention and control in the spirit of building a community with a shared future for mankind, and made great efforts and sacrifices to prevent the epidemic from spreading worldwide. These steps have earned China widespread recognition, support and assistance from the international community. So far, the governments and peoples of dozens of countries have lent a helping hand to China. Leaders and heads of more than 170 countries and over 40 international and regional organizations have expressed their sympathy and support for China through phone calls, letters and statements. The Chinese people's strength, spirit and efficiency in its prevention and control of the epidemic, as well as China's image as a responsible major country have won widespread praise from the international community.

At the military level, by the end of Feb. 29, defense departments and military leaders from countries including Laos, Vietnam, Cambodia, East Timor, Myanmar, Afghanistan, Pakistan, Singapore, Indonesia, Iran, Tanzania, Serbia, the United States and New Zealand have sent letters of sympathy to the Chinese military. Military leaders or senior military officials from countries including Pakistan, Malaysia, Thailand, Sri Lanka, Afghanistan and Jordan expressed their sympathy and firm support for China in fighting against the epidemic through Chinese embassies. Defense departments and militaries from countries like Laos, Vietnam, Cambodia, Myanmar, Singapore, Mongolia and Trinidad and Tobago have donated materials and money to China. Pakistan, Belarus, Turkey and other countries sent military aircrafts to deliver large amounts of medical supplies including face masks, goggles and medical protective suits to China. In addition, military attaches of foreign embassies in China and foreign military students studying in China recorded videos and sent letters of sympathy to pray and cheer for the Chinese people. Thanks to all this support and help, we can feel the warmth of spring amid this cold winter.

Chairman Xi Jinping has long advocated the great initiative of building a community with a shared future for mankind. According to Chairman Xi, countries around the world are now interconnected and interdependent to an unprecedented level, whilst humans live in a global village and shared space where history is blended with modernity. The world has become a community with a shared future where the interests of all people are closely intertwined. The coronavirus knows no borders. No one can stand aloof and no country can remain on the sidelines as public health security is a common challenge of human society. The virus is being transmitted today in this country and could be transmitted in another country tomorrow. We should stand closely together and cooperate to cope with the challenges. China and the international community have worked together to tackle the epidemic, demonstrating the efforts and achievements of all countries in building a community with a shared future for mankind. The Chinese character "人" [meaning "people"] is a mutually supporting structure. "A friend in need is a friend indeed." Many countries and militaries have offered China sincere help and support as China combats the epidemic. Here I would like to express my sincere gratitude to them. China will actively carry out international military cooperation and work with the militaries of other countries to combat public security threats including the COVID-19 outbreak. We firmly believe that we will win the battle against the epidemic and usher in a brighter spring with the concerted efforts of the international community. This spring belongs to both China and the world. Thank you. 

Reuters:

I have two questions. First, military camps are home to large concentrations of people, why have there been no cases of coronavirus infection in the camps? What kinds of measures has the military taken to keep the virus off the camps and how do these measures differ from those targeted at civilians? Second, why did the Chinese government only send troops to Hubei province at the end of January? Thank you.

Chen Jingyuan:

Regarding the first question, the Chinese military has dedicated itself to the epidemic prevention and control work in accordance with the overall national plans and arrangements, which coordinate efforts all over the country "as if on a single chessboard." Meanwhile, we have strengthened unified leadership and command to seek higher unity in our action, and enhanced coordination in performing tasks related to epidemic prevention and control. Under the unified command and deployment of the CPC Central Committee, the Central Military Commission and Chairman Xi, we have tightened measures to prevent the epidemic in the military according to the unified national requirements on epidemic prevention and control. Such measures include organizing knowledge training related to epidemic prevention and control for military personnel, restricting off-camp activities and exchanges, as well as minimizing large gatherings. In addition, we have adjusted training and work schedules to reduce group activities. These strong, orderly and effective measures have created a good order of training and daily life for military personnel and helped them maintain combat readiness. Thank you.

Hu Kaihong:

As Mr. Chen has introduced, the armed forces sent the first batch of personnel to combat the epidemic as early as Jan. 24.

Wu Qian:

As for the second question, Mr. Chen has already given the answer. Whether the armed forces send personnel to aid epidemic prevention and control depends on the overall national arrangement and the epidemic situation. The first group of military medics was dispatched on Jan.24.

CCTV:

I have two questions. First, in the battle to contain the epidemic, frontline medical workers are facing heavy burdens, high infection risks, as well as huge physical and mental pressure. How are the military medics who were sent to Hubei doing in this regard? Second, more than 2,000 Chinese medical workers have been confirmed to be infected with the novel coronavirus. Have any infections occurred among the military medics sent to Hubei? Thank you.

Chen Jingyuan:

The current outbreak is still very serious and complicated, and the epidemic prevention and control work is entering an important phase. For medical staff that are fighting on the frontline, the best respect we can pay them is to learn from their moving stories and their selfless spirit, and combine our resolution and faith to win this battle. Faced by the epidemic, military medics submitted written requests to go to the frontline one after another so as to take part in rescuing patients. As one military medic said, "CPC members should lead the battle and servicemen should fight on the frontline" Some of our medical staff are sticking to the frontline and working continuously, with some even being couples fighting against the epidemic together. Some have postponed their wedding ceremonies, and many retired military medics have also requested to fight on the frontline in Wuhan. That is why patients call our staff "those we trust with our lives."

As for your second question, Xi Jinping, chairman of the Central Military Commission, is very concerned with our staff participating in the epidemic prevention and control, paid high attention to their protection and asked for support and guarantees from all sides. Military support teams sent to Wuhan have resolutely implemented Xi's instructions and requirements, respecting rules and science, and adhering to scientific prevention and control methods. They strictly follow procedures and standards of hospitals for infectious diseases as they carry out medical treatment. The medical staff take level-3 protection measures. Our specialists and experts supervise the protection work strictly, so, up to now, none of our medical staff have been infected. Taking Huoshenshan Hospital as an example, the hospital has focused on fine protection. We selected experts to form the supervision group, and guided special personnel to monitor and establish strict procedures for medical treatment, prevention and control. We provided safety and protection training for our staff and are increasing supervision levels in all aspects. At the same time, we also pay attention to ensuring they have necessary rest, conscientiously do the work of providing them with adequate daily necessities and psychological counseling to help relieve the stress and regain strength, so that they can get back to work at their best to win the battle with zero infection. Thank you.

Shenzhen Satellite TV:

We have noticed that military transport aircraft including Y-20s were used to transfer medical staff and supplies. Could you give us more information about this?

Zhang Tianxiang:

The PLA has sent military medical support to Hubei by air, railway and road. The Air Force sent out its first batch of 450 military medics and medical supplies to Wuhan on Jan 24 from Shanghai, Chongqing, and Xi'an, Shaanxi province, by using three IL-76 transport planes.

On Feb. 2, the Air Force dispatched eight IL-76 transport aircraft, departing from Nanjing, Guangzhou, Lanzhou and Shenyang, taking the second batch of nearly 800 military medical personnel to Wuhan. On Feb. 13 and 17, the Air Force dispatched 12 Y-20, IL-76 and Y-93 transport aircraft in two waves, flying 19 sorties, and delivering the third batch of more than 1,600 military medical personnel to Wuhan. Among them, the Y-20s flew 10 sorties. This was also the first time that this type of large domestic-made military transport aircraft has participated in non-warfare military operations since its maiden flight in 2013.

This time, the Air Force formed a systematic, large-scale deployment of large and medium-sized transport aircraft to perform emergency airlifts, which also tested the Chinese PLA Air Force's rapid maneuverability and long-range delivery capabilities. At the same time, we coordinated with the railway department to take special measures such as adding additional temporary trains, adjusting train marshalling, and increasing station waiting time. On Feb. 2, 13, and 17, more than 1,200 medical personnel, who gathered at 22 stations across the country, and over 100 medical supplies were delivered to Wuhan via 18 high-speed trains. The close military-civilian coordination was highly efficient in completing the delivery mission. Thank you.

TASS Russian News Agency:

How many PLA troops have participated in the task of epidemic prevention and control so far? Thank you.

Zhao Haifei:

Thank you for your question. The Chinese armed forces have resolutely implemented the decisions and deployments of the CPC Central Committee, the Central Military Commission, and Chairman Xi. It always keeps in mind the fundamental mission of serving the people wholeheartedly, insists on the people and their lives being the top priorities, promptly launches the joint prevention and control work mechanism, and goes all out to support local epidemic prevention and control work. 

At present, the Chinese military has selected and assigned more than 4,000 military medical personnel in batches to carry out medical missions. The troops stationed in Hubei province have assigned more than 160 personnel and more than 130 vehicles to perform supply transportation support tasks. The Hubei Military Region and the Armed Police Force's Hubei Provincial Corps are also actively involved, assisting local authorities in such actions as transporting supplies, conducting disinfection, and carrying out epidemic prevention and control, which give full play to their role as vanguards and commandos. Their practical actions have won them the great trust of the people. Whenever there is a major natural disaster, a major risk or challenge, a major hardship or danger, the people's army will always appear, stand up and go all out.

Next, we will make full preparations to continue supporting the local epidemic prevention and control at any time once an order is issued, according to the development of the epidemic and the needs of local epidemic prevention and control. We will resolutely win the people's battle against the epidemic. Thank you.

Phoenix TV:

We have noticed that some experts recently suggested that a biodefense force should be established to ensure the country's biosafety. What do you think of this? Thank you.

Wu Qian:

We will not be commenting on the personal views of experts or scholars. It is common practice for countries to strengthen their national biosafety – this is something to which the international community has always focused on. The issue of biotechnology safety was addressed in particular in Agenda 21 and the Convention on Biological Diversity adopted at the UN Conference on Environment and Development in 1992. From the perspective of protecting people's health, safeguarding national security and maintaining long-term stability, China has decided to integrate biosafety into its national security system so as to make a systematic plan for the risk prevention and control and governance system construction of national biosafety, and comprehensively improve its national biosafety governance capacity. The epidemic outbreak highlights the importance of biosafety. China will promote the introduction of a law on biosafety as soon as possible and accelerate the establishment of a national system of laws and regulations, and an institutional guarantee system on biosafety. Thank you.

Southern Metropolis Daily:

Could you explain what the logistics support team made up from troops stationed in Hubei province has done to guarantee the delivery of living materials in Wuhan? Thank you.

Zhang Tianxiang:

At the request of the Wuhan epidemic prevention and control headquarters and approved by the Central Military Commission, a logistics support team has been established to support the logistics distribution and market supply in Wuhan. Made up from troops stationed in Hubei province, the team takes charge of delivering living materials to local citizens and transporting medical protective materials. Among the officers and soldiers in the team, some took part in the relief work after the 2008 Wenchuan earthquake, some participated in flood rescue in 2016, and some performed tasks to support the 7th World Military Games. All the team members showed great enthusiasm in combating the epidemic. Established on Feb. 1, the team participated in its first transport task at 2 a.m. on Feb. 2. As of March 1, a total of 2,500 vehicles had been dispatched by the team, transporting more than 8,500 metric tons of daily necessities for the people and 23,700 pieces or sets of medical protective materials. A total of four helicopters had also been sent to transfer 6.5 metric tons of medical supplies. The team has helped solve the local citizens' problems in terms of daily life and medical protection, receiving praise from local people. Thank you.

Hong Kong's Economic Herald:

During the military support in fighting against the outbreak of the COVID-19 in Wuhan, how has the military and local authorities cooperated? 

Zhao Haifei:

The coordination between the military and local authorities are very close, smooth, and efficient. The Central Military Commission set up a coordination system, led by the CMC Logistics Department. Some related military departments and units also participated in dealing with public health emergencies within the army. They actively take part in the epidemic prevention and control work of the State Council, as well as the Central Guidance Team in Hubei. They also strengthen coordination work with local civil authorities. 

After the arrival of the military medical aid team in Wuhan, the Chinese military quickly established a joint meeting, briefing, and information sharing mechanism with the local government. In the fight against the epidemic, the military and the local government worked closely together, supported each other, exchanged deployed goods, such as goggles, N95 masks, and other medical supplies in short supply. In addition to medical aids, there have been good military and civilian cooperations in scientific rescue, medical discussions by medical professionals, giving out medications, and improving the diagnosis and treatment of patients in severe condition.. Moreover, it should be emphasized that the local authorities in Hubei and Wuhan, as well as the local civilians, care about the military medical teams and take the initiative to support us. Thank you.

Hu Kaihong: 

Due to time concerns, please ask the last two questions.

Global Times: 

Some foreign military experts have analyzed that the outbreak of the COVID-19 may have an impact on the combat readiness of the Chinese army. May I have your comment. Thank you. 

Wu Qian: 

The military has been undertaking diversified missions such as disaster relief and emergency rescue. We should devote ourselves to supporting the fight against the epidemic at the local level, and act as pioneers and commandos for the prevention and control of the epidemic to safeguard the lives of the people. This will not only test the emergency response capability of the armed forces comprehensively but also strengthen the army combat readiness. During the epidemic period, the PLA adhered to the principle of fighting against epidemics without misgivings and without losing their combat readiness. They have made solid efforts to carry out all kinds of work focusing on war preparedness and to maintain regular training and good combat readiness. Thank you. 

Hu Kaihong:

And now the final question.

CCTV:

With the arrival of the team of the military medical teams in Wuhan, the military doctors on the frontline said during an interview that "the PLA pledges to protect people's safety." My question is, will the military medical aid team withdraw only after complete victory in the epidemic control battle? Or is there a coordinated timetable for the military and local medical aid teams to withdraw in turn? How will the work be conducted precisely? Thank you.

Chen Jingyuan:

Medical teams from many places across China volunteered to join the fight in Wuhan, and the PLA also sent teams of over 4,000 personnel. During the process of epidemic control and prevention, the people and the armed forces are united strongly as a fortress. As for the victory in the fight, we hold that we are now in phase-one of the victory and are still in the critical period. As for the work arrangements afterwards, we will make plans depending on the situation of the treatment and the epidemic.

Wu Qian:

I would like to add a quote from Chairman Mao: "If the army and the people are united as one, who in the world can match them?" Thank you.

Hu Kaihong:

That's the end of today's conference. Thank you, all the speakers and friends from the media.

Translated and edited by Zhang Liying, Duan Yaying, Yang Xi, Zhang Rui, Fan Junmei, Li Xiao, Guo Xiaohong, Mi Xingang, Li Huiru, Wu Jin, Lin Liyao, Zhang Junmian, Wang Qian, Wang Zhiyong, Wang Wei, Yuan Fang, Cui Can, Zhang Lulu, Yan Xiaoqing, Wang Yiming, Zhu Bochen, Huang Shan, Jay Birbeck, Laura Zheng, David Ball. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Ma Xiaowei, a member of the Central Guidance Team in Hubei, and minister of the National Health Commission

Yu Xuejun, a member of the Central Guidance Team in Hubei, and vice-minister of the National Health Commission

Liang Wannian, head of the Chinese Expert Panel on COVID-19 Outbreak Response and Disposal of the National Health Commission

Jiao Yahui, deputy director of the Bureau of Medical Administration of the National Health Commission

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office of China

Date:

Feb. 28, 2020

Xi Yanchun:

Friends from the media, good afternoon. Welcome to the press conference held by the State Council Information Office in Wuhan, Hubei province. Today, we have invited Mr. Ma Xiaowei, a member of the Central Guidance Team in Hubei, and minister of the National Health Commission (NHC); Mr. Yu Xuejun, a member of the Central Guidance Team in Hubei, and vice-minister of the NHC; Mr. Liang Wannian, head of the Chinese Expert Panel on COVID-19 Outbreak Response and Disposal of the NHC; and Ms. Jiao Yahui, deputy director of the Bureau of Medical Administration of the NHC. They will introduce the progress being made by the Central Guidance Team in organizing and guiding works related to epidemic control and medical rescue. Later, they will answer your questions. First, I'll give the floor to Mr. Ma Xiaowei.

Ma Xiaowei:

Friends from the media, good afternoon. The COVID-19 outbreak is a major public health emergency recognized as having spread fastest, caused the most extensive infection and proved the hardest to contain since the founding of the People's Republic of China in 1949. The Central Committee of the Communist Party of China (CPC) has attached great importance to the situation. General Secretary Xi Jinping is personally leading, commanding and deploying all available forces in the battle against COVID-19 outbreak. Premier Li Keqiang has inspected the control and prevention work in Wuhan. Entrusted by General Secretary Xi Jinping and the CPC Central Committee, Vice Premier Sun Chunlan has been leading the Central Guidance Team in Wuhan since Jan. 27 to resolutely implement the decisions and deployments of the CPC Central Committee, giving top priority to epidemic prevention and control and medical treatment for everyone who becomes ill. The Central Guidance Team has conducted in-depth analysis and research accordingly throughout the decision-making process. Based on the goal of improving patient admission and recovery rates, as well as reducing infection and mortality rates, the Central Guidance Team in Hubei has made important decisions and deployments in this regard, providing strong and comprehensive guidance in regard to the prevention and control work in Wuhan city and Hubei province in general, which is now showing a growing positive trend.

In order to deal with the spread of the virus among all the communities, the Central Guidance Team urged the local authorities to carry out community-based screening and improve the capacity of the nucleic acid test for confirming the illness. Four categories of people are involved in the screening, including confirmed COVID-19 patients, suspected ones, people who have had close contact with the former two, and patients with common fever. Almost 1,000 personnel from the Chinese Center for Disease Control and Prevention and relevant institutions across the country have been sent to Wuhan to conduct epidemiological investigation and carry out disease prevention and control. A total of 13 expert panels have been established on-site in Wuhan to provide guidance and conduct quick assessment accordingly. With the support from the central government, local authorities and the third-party institutions, three mobile P3 laboratories were also dispatched to the epicenter. We have organized personnel from relevant institutions and laboratories across China to provide guidance for efficiently carrying out the nucleic acid test in various cities and counties in Hubei province, carried out personnel training and strengthened quality control work. All of these activities have greatly enhanced the capacity of carrying out the nucleic acid test. The number of tests conducted per day have increased from 300 to 20,000; and instead of two days, now it only takes 4 to 6 hours to get the results. All those in need of nucleic acid test will be tested immediately.

In order to ensure there is no delay in the treatment of any patient, we have made all-round efforts to increase the number of hospital beds. We have guided the local government to transform and expand a range of designated hospitals in Wuhan for this special purpose. Within the space of a single month, hospital beds for COVID-19 patients have been increased from some 5,000 to more than 23,000, among which more than 9,000 were prepared for severely-ill patients. Thanks to the efforts of Wuhan local governments at all levels, a batch of gymnasiums, exhibition centers and training centers have been transformed into Fangcang shelter hospitals and quarantine spots, and an additional 16 of the former have now been built. At present, more than 13,000 hospital beds are available in the city, and the daily number of newly-cured and discharged novel coronavirus patients has far surpassed that of new infections.

In order to address the shortage of medical personnel and medical supplies, we have coordinated and allocated various resources from across the country. Since the outbreak of the epidemic, a total of nearly 66,000 cases have been confirmed in Hubei province, with a significant proportion of them deemed to be severe cases, which was far beyond the normal capacity of local medical services. Since the novel coronavirus is highly infectious, we can't transfer the patients to other places to help ease local pressure at source. Therefore, we have sent thousands of excellent medical personnel from all over the country to assist the efforts in Hubei. At present, more than 40,000 medical personnel formed into 330 medical teams have been transferred to the province, among them over 15,000 being professionals in departments of critical care medicine, infectious disease, respiratory medicine, circulatory medicine and anesthesiology. To address the shortage of medical equipment and supplies that existed at one time, hospitals sending medical teams to Hubei were also asked to collect medical equipment and materials including ventilators, artificial lungs and medical protective suits to support those fighting against the epidemic on the frontline. One week ahead of the national emergency medical rescue teams arriving in Wuhan, most of the medical supplies supported by their hospitals had already been transferred. This meant the rescue teams could immediately treat patients upon their arrival. This was vital because, for all the patients, every minute counts.

In order to lower the mortality rate, we have further implemented the principle of "four concentration", namely concentration of patients, specialists, resources and treatment, and strengthened our efforts to cure severely-ill patients. In Wuhan, the national medical teams have adopted a model of overall takeover, with assisting medics from the same provincial region or the same hospital taking charge of one specific department of local hospitals. The hospital beds for severe cases have been increased to 9,000, and more than 7,000 severely-ill and critical patients have been received and treated. We have set up ward inspection teams consisting of academicians and joint expert groups, revised the treatment plan six times, and implemented the system of expert consultation at all times, 24-hour reporting of critical cases, discussion of the reasons for any fatal cases, and constant ward inspection for severely-ill cases. We also organized intubation teams to carry out tracheal intubation for severely-ill patients, and promoted the clinical use of traditional Chinese medicine. In doing so, the recovery rate of severely-ill and critical patients has risen to 64% from 14% in designated hospitals, and a total of more than 36,000 patients have been discharged from hospitals after recovery all over the country.

Thanks to these arduous efforts, the situation of the epidemic prevention and control in the country is moving in a positive direction while maintaining overall stability. According to the China-WHO joint expert team, China's unprecedented public health responses to the COVID-19 outbreak have yielded notable results in blocking human-to-human transmission of the virus, preventing or at least delaying hundreds of thousands of cases.

Recently, the CPC Central Committee, bearing in mind the overall situation of economic and social development and the overall situation of reforms, development and stability, has made major decisions to coordinate the prevention and control of the epidemic with economic and social development. The State Council has made specific arrangements. With the transformation of epidemic prevention and control from "static management" to "dynamic management", from "national unified requirements" to "regional classification", from "social prevention and control" to "precise prevention and control", higher requirements have been put forward for the health system. We are fully aware that the current achievements in epidemic prevention and control have not come easily, and the situation remains grim and complex. With the resumption of production, reopening of schools and movement of people returning to their place of residence, there is a risk of a rebound of the epidemic. Some places have already seen a cluster of cases, meaning we should not take any chances or relax mentally. We know full well that our medical personnel must firmly defend Hubei, especially Wuhan, as the decisive focus. "Although China is a large country, we must not take a step back." Because, behind Hubei and Wuhan stand 1.4 billion Chinese people and 7.5 billion vulnerable people throughout the rest of the world, and it is the duty of medical workers to safeguard people's health and improve human welfare.

As the next step, the central guidance group will continue to focus on epidemic prevention and control in urban and rural communities and treatment of patients in accordance with General Secretary Xi Jinping's requirements. In terms of epidemic prevention and control, we should guide local governments to put forward suggestions on the best ways to dynamically adjust emergency response levels in accordance with the law and regulations. Different prevention and control strategies should be adopted in different regions, like Wuhan, Hubei Province, Beijing, some key provinces, as well as the whole country. In accordance with the requirements of the fifth edition of the prevention and control plan, different measures should be clarified for low-risk, medium-risk and high-risk epidemic counties. For the implementation of the circular issued by the joint prevention and control mechanism of the State Council, specific and precise arrangements are needed to further consolidate responsibilities of enterprises, public institutions and schools, revise and improve the prevention and control plans for key groups, places and institutions, and provide technical support for orderly resumption of work, production and reopening of schools.

In terms of medical treatment, we need to ensure that newly-discovered cases are treated without delay on a daily basis, continue to optimize medical equipment and resources, and make arrangements for pairing assistance from 19 provinces. We should pay attention to the treatment of mild cases and block the way to severe cases in a timely way. For treatment of patients with severe conditions, we should adhere to the "four combinations", namely, combing preclinical medicine with clinical practice, combining clinical treatment with multi-disciplinary support, combing medical treatment with nursing care, as well as combing medical treatment with management. We should fully leverage the technical advantages of various clinical key disciplines in our country for each patient treatment.

Thank you.

Xi Yanchun:

Thank you, Mr. Ma. Now, let's move onto the question and answer section. Reporters can ask questions by video link. Please identify your news organization before asking questions.

Xinhua News Agency:

Official data shows that there are still a large number of severe cases of novel coronavirus infection in Hubei province, especially in Wuhan. What measures have been taken to treat severe patients so that the mortality rate is reduced? Thank you.

Ma Xiaowei:

Compared with SARS, the new coronavirus spreads faster. Most infected people show mild symptoms, while a small number of people are in a critical condition, with the heart and other organs affected. Among the fatalities, most people have serious underlying diseases, including heart disease, terminal cancer and kidney failure. There are also some young patients whose diseases developed rapidly, hence increasing the difficulty of treatment. Although the medical community lacks knowledge about the treatment of the disease, as well as the mechanism of its development and outcome, the viral damage to the body is consistent with the known pathophysiological process. Enhancing medical treatment and improving the quality of basic medical care are always the essential requirement for us.

In order to reduce the mortality rate and increase the recovery rate, we have adopted the strategy of "pooling together patients, experts and resources for centralized treatment." In Wuhan, we identified more than 10 designated hospitals with over 9,000 beds for the treatment of severe and critically ill patients. Around 13,000 high-level medical personnel from more than 90 national and provincial medical teams have been dispatched to these hospitals. They closely cooperate with local medical workers, and continue to make new progress in the treatment of severely ill patients.

To sum up, we have made efforts in the following three aspects. First, we try to make the treatment more targeted. By carrying out study on pathological anatomy, we have identified which organs suffer great damage and to what extent. In this way, we have made clear the main direction of clinical treatment and come up with corresponding treatment methods. We continue to optimize the previous treatment schemes and reach an expert consensus on treating severely ill patients. Second, we need to figure out more creative ways of treatment. It's very important to identify critically ill patients at an early stage. We need to focus on the principal contradiction during clinical treatment, such as solving the problem of tracheal obstruction, and adopt treatment methods and devices in a creative way. We have to seize the best time for treatment, choose the best treatment method, and even determine the optimal dosage of the medications. This time, anesthetists are a mainstay in intensive care units. They have formed a special team to carry out tracheal intubation and provide ventilator support for patients in a timely manner. It's very important to adopt this means at an early stage to save the lives of patients. This is also what we have learned from the treatment process of the severely ill. Third, we need to take a holistic approach to the treatment. We will give full play to the role of high-level experts working together, attach importance to their close communication and collaboration, and enhance the exchange of experience among them.

We should ensure the "four combinations" in the fight against the COVID-19. First, we should combine preclinical medicine with clinical practice. We will further conduct research on etiology, morbid anatomy and immunology in order to provide theoretical support and clinical evidence to improve the effectiveness of clinical treatment.

Second, we should combine frontline medical treatment with backup multidisciplinary consultation and technical support. During the early stage of the epidemic outbreak, the rear area supported the frontline work mainly by strengthening the available medical force, and allocating sufficient medical supplies and equipment. At present, however, the priority for the rear area is moving to provide multidisciplinary technical and academic support, with consultations held daily between frontline and rear-area doctors to make the very best treatment plan for severe cases.

Third, we should combine treatment with nursing. We have witnessed patients suffering severe respiratory disease in a critical condition, as well as the treatment and care they received in the ICU. All these cases show the significance of basic nursing. Therefore, we should establish unified nursing procedures, standards and assessment at the wards for severely-ill patients, with an aim of attending to all.

Fourth, we should combine treatment with outstanding management. We have adopted a model of overall takeover, with assisting medical staff from the same hospital taking charge of one specific department. On that basis, we have also established a joint medical affairs department, nursing department and nosocomial infection control department; set up joint expert groups consisting of experts at the national, provincial and municipal level; and constantly improved procedures and unified standards. Meanwhile, we have arranged inspections and mobile medical services by expert groups covering other hospitals in Wuhan. By doing so, we have brought all the severe and even critical cases in the epicenter city into unified management.

Based on previously accumulated experience, we have released the sixth edition of the COVID-19 diagnosis and treatment scheme. Up to now, we have cured more than 78,000 patients. Over 36,000 patients have been discharged from hospital after recovery. On that basis, we should provide the Chinese approach to the treatment of severe COVID-19 cases, which applies the Chinese standards and reflects the Chinese level of health service provision. With continued progress made in clinical treatment of the disease, our medical staff will accumulate more experience and strengthen their confidence to fight on the frontline against the epidemic.

Yomiuri Shimbun:

At present, the new cases in Hubei province and Wuhan city have been declining. The WHO believed the epidemic had reached its peak, but a CPC Central Committee meeting held on Feb. 21 stressed the turning point of the epidemic was yet to come. How do you analyze it? Thank you.

Ma Xiaowei:

Mr. Liang Wannian please answer the question. He is the Chinese team leader of the WHO-China Joint Mission.

Liang Wannian:

Since the outbreak, we have been organizing multi-disciplinary experts, including those involved in public health, epidemiology, health emergency, clinical medicine, law, sociology, economics, etc., to track and evaluate the development of the epidemic, and at the same time undertake a risk assessment. Through situation evaluation and risk assessment, experts agreed that the epidemic prevention and control was tactically correct, the measures decisive and effective in achieving positive results and obvious progress. They mainly help avoid a larger-scale epidemic outbreak and spreading. The situation of national epidemic prevention and control is in positive trend. I will introduce the situation of the epidemic by levels and regions.

Wuhan is the epicenter of this epidemic, and it is also the most seriously-affected region. Currently, the rapid rising trend of the epidemic has been curbed, which is reflected in the decrease of newly confirmed cases and the decrease of new suspected cases each day. The proportion of severe cases among confirmed ones has decreased, and the fatality rate has fallen. These four figures fully show that the epidemic is being effectively controlled.

I have a set of data here. For example, the highest number of newly confirmed cases per day was 3,910 on Feb. 13, and then fell to 313 on Feb. 27. The number of newly recovered and discharged patients, beginning from Feb. 20, exceeded the number of newly confirmed cases for eight consecutive days. This is a very good situation. Not only the balance of entry and exit of hospitals has been reached, but the number of discharged patients has also exceeded the number of newly-confirmed ones.

The proportion of existing severe cases, that is, the proportion of severely-ill patients among total confirmed cases, has continued to fluctuate and decline from 31.6% on Feb. 11 to 22.4% on Feb. 27. The fatality rate has dropped from a peak of 9.0% on Jan. 26 to 4.4% at present. At the same time, there's a relatively good situation that among the new cases every day, we further analyze that these new cases are mainly the ones transferred from the suspected category under observation, which accounts for 80% to 90% of the total. This means that these cases all were diagnosed from what we have under our control. This is a basic situation in Wuhan.

In other cities in Hubei province, our research and evaluation found that the local outbreak situation had been contained. This is our basic judgment. There are several sets of data in cities other than Wuhan in Hubei to confirm this situation. The number of newly-confirmed cases per day has fallen from the peak of more than 1,400 on Feb. 12, to five at present. And the number of recovered and discharged cases has exceeded the number of newly-confirmed ones for 13 consecutive days starting from Feb. 15. At the same time, the proportion of existing severe cases continues to remain stable, which was 12.9% on Feb. 27. The fatality rate has remained steady since Jan. 26, and was 3.1% on Feb. 27.

Nationwide, the epidemic control in provincial-level regions outside Hubei has seen a growing positive trend, with only sporadic cases. The number of new infections has dived, daily new confirmed cases having plummeted from 890 at a peak time on Feb. 3 to nine, and the newly recovered and discharged patients have outnumbered new confirmed cases for 16 consecutive days since Feb. 12. The severe cases have remained at a level of 10.3% and the mortality rate has stabilized between 0.5 and 0.8%. On Feb. 27, no new confirmed cases were reported among 24 provincial-level regions as well as the Xinjiang Production and Construction Corps.

These are our studies and judgments on the situations categorized in the three major regions mentioned above. However, our expert panel warns that zero growth is by no means equal to zero risk as challenges facing China's prevention and control efforts remain formidable, and uncertainties over whether the virus will return still puts us under strain. We should not be blindly upbeat, and become less vigilant. In a holistic view across the country, Hubei province, with its capital Wuhan in particular, remains the epicenter. Stringent prevention work is still vital in regions outside Hubei in case the epidemic may return when the migration of people has increased during the resumption of work and production. Cross infections will probably lead to a second outbreak in certain areas. In the next phase, we must continue to bring the epidemic under control, however, at the same time, balance the epidemic prevention and control with economic and social development. To this end, our experts give the following advice:

Regarding the prevention work in Wuhan, we will continue to adopt the approaches shown to work, including to prevent the disease from further spreading both in and outside the city, and step up efforts in medical treatment and mass prevention and control. We will continue to implement and maintain the existing measures, such as, ensuring all exits from Wuhan remain closed, to enhance the prevention and control efforts in communities and to adhere to the principle of concentrating cases, experts, resources and treatment. It is essential for us to improve our medical treatment to reduce the mortality rate. At the same time, patients with light symptoms in Wuhan should be treated meticulously to prevent their conditions from aggravating.

The policies in other city-level areas outside Wuhan in Hubei province should be implemented with the focus on stringent management and control in an effort to prevent the virus from spreading both within and beyond the borders of Hubei resulting in another outbreak. We should strictly follow the measures taken to treat people categorized in four different groups, namely, confirmed COVID-19 patients, suspected ones, people who have had close contact with the former two, and patients with common fever, to ensure that the transmission will be completely blocked. We will continue to follow the stringent rules to control the exits from Wuhan and Hubei so as to prevent the epidemic from spreading to the rest part of the country.

The focus on prevention, on non-transmission from external sources and on containing the existing cases from further spreading should be implemented in the rest of the country. The prevention and control approaches will be developed into high, medium and low levels based on the risk evaluation conducted at the county-level unit to coordinate the epidemic prevention and control with economic and social development. Thank you.

The Paper:

We have learned that, over the past few days, more than 40,000 medical professionals have been sent by the central authority and provincial-level regions to Hubei province. My question is what the country has done in mobilizing these medical teams efficiently and what are their roles in treating COVID-19 patients? Also, are there any plans for the teams to get a rest? Will the country send more teams there? Thank you.

Ma Xiaowei:

Wuhan is the absolute priority for epidemic control and medical treatment. As General Secretary Xi Jinping said: "China's triumph (against the outbreak) depends on Hubei, and Hubei's triumph depends on Wuhan." We have sent over 40,000 medical workers drawn from across the country to Hubei, covering the province thoroughly with our strongest forces, in order to win this war of annihilation against COVID-19. A lot of work needs to be documented, a lot of experiences need to be summarized, and a lot of stories need to be chronicled. Let me ask Jiao Yahui, deputy director of the Bureau of Medical Administration, NHC, to answer your question.

Jiao Yahui:

Thank you for your questions. Hubei and Wuhan form the main battlefield of the fight against COVID-19. As medical demands in Wuhan rapidly increased, the lack of medical forces there became a prominent problem. Since Jan. 24, the National Health Commission has organized medical workers nationwide to assist Hubei and Wuhan. These people offered a comprehensive range of specialties and have taken over the ward work as a whole. We have undertaken the following work in terms of dispatching medical teams: first, we mobilized medical resources in a scientific and rational way. As treatments differ between severe and mild cases, we organized different medical teams accordingly. Regarding medical teams required to treat severe cases, we organized personnel who already have experience of working in respiratory, infection and critical care departments, as the COVID-19 is recognized as a kind of a respiratory infection. One ward comprises 50 beds, and one medical team consists of 30 doctors and 100 nurses. When it comes to mild cases, for example, for patients in shelter hospitals, 500 medical workers are responsible for 1,000 beds. Those doctors and nurses are mainly from internal medicine departments, and the ratio between them is 1:4.

Second, we comprehensively assigned medical teams capable of treating severe cases to hospitals designated for severely-ill patients. We adopted a model that the assisting medical staff from the same provincial-level region or the same hospital should take charge of one specific department in the affected area, and we also let medical teams that treat severe cases take overall charge of one specific ward. Also, these teams have joined hands with local hospitals and their medical teams to form joint medical affairs offices, infection-control offices, nursing departments and expert teams, in order to carry out joint evaluation and management of all severe cases. The medical quality management system that we established previously has also played a key role this time.

Third, we set up special medical teams manning Fangcang shelter hospitals in such a way that they consist of groups assigned to treat patients with mild symptoms, the national-level emergency medical assistance teams and mobile P3 laboratories. With an eye to the conditions of these shelter hospitals, we made a deployment in which the provincial-level medical teams have been tasked with the overall work in different wards, and thus ensured that these shelter hospitals are rapidly equipped with standardized medical treatment, nursing and clinical examination units. By so doing, we made it possible for these shelter hospitals to receive patients with well-allocated resources immediately upon their handover.

Fourth, we have sent medical teams in a proactive way to ensure frontline personnel can rotate and have enough rest. In line with General Secretary Xi Jinping's important instruction on giving priority to the protection and care of medical workers to ensure they can maintain their own health to fight the epidemic, we drew up a rotation scheme for our medical teams, and it has been implemented in the following three ways. The first is to look for ways within the medical teams to reduce work intensity and achieve rotation of medical workers. Today's data shows that there are more than 26,000 COVID-19 inpatients in Wuhan, over 6,700 of whom are in a severe or critical condition. As the numbers of inpatients and severe cases have sharply declined since they peaked, the number of patients at the wards taken over by some medical teams has reduced accordingly, creating favorable conditions for shortening the working hours of a shift for medical staff in insolation wards. The second is to strive for rotation and rest for the entire team. Those recently sent to Hubei have taken over the overall work of others that arrived there as early as January. For example, all members of the medical teams from Fujian province and Tianjin Municipality, which went to Hubei at an earlier time, are now having a break. The third step is to regroup the newly arrived medical teams and assign the smaller new groups to medical teams that arrived earlier to expand their numbers, and thus reduce their work shifts with desirable breaks. For example, with new members coming in, doctors and nurses in the medical teams from Gansu province can now rest for 1.5-2 days and 2.5-3 days respectively after they have worked for one full day. Among the medical teams from Chongqing municipality, the average weekly working hours have dropped from 50-60 to 25-30 hours for doctors, and from 40 hours to 20 hours for nurses. Therefore, we can say that rotation of medical teams guarantees our medical workers can always maintain strong combat capability and be energetically devoted to the battle against the epidemic. Our medical teams have played important roles in fighting the virus. Thank you.

Pakistani correspondent:

The WHO evaluates China's measures as effective, but does not rule out the possibility of rebound. There is still big risk in fighting this virus. Now more and more people are going back to work and restarting production. How can China prevent the epidemic from rebounding and control the risk? Thank you.

Ma Xiaowei:

Currently, this is a very important task we are facing in containing the epidemic. We have analyzed and made special deployment in this regard. I will give the floor to Mr. Yu Xuejun, vice minister of the National Health Commission.

Yu Xuejun:

Thank you for your question. This issue is indeed very important. As Mr. Ma just said, it is also the focus of our current work. Taking the opportunity of answering your question, I would like to give you an interpretation.

Despite the fact that the WHO has given a positive comment on China's epidemic prevention and control, we, as well as the WHO, are very level-headed. We have realized that we still face a severe and complicated situation, and there is a risk of the disease regaining its strength. The public may notice that many provinces have already lowered their emergency response levels. According to local conditions, relevant provinces can and should adjust the emergency response level in a timely manner, following the laws and regulations such as the Law on the Prevention and Treatment of Infectious Diseases and the Regulations on Preparedness for and Response to Emergent Public Health Hazards. We need to take more specific and targeted measures in different regions to prevent and control the epidemic and resume operation and ensure that business and schools reopen in an orderly manner.

The fact that more regions have begun to lower their emergency response level means the gradual lifting of relevant restrictions. The resumption of work and reopening of schools means that a large number of people will be moving across various regions, which might bring a series of challenges in regard to the containment of the epidemic. The challenges are reflected at least in the following aspects: First, after the removal of traffic restrictions, the risk of transmission during transportation will increase. Second, the resumption of work and reopening of schools will increase the risk of cluster transmission. Third, in major labor-importing provinces such as Guangdong, Jiangsu, Zhejiang, the risk of imported cases will also increase. These risks will bring a certain level of uncertainty to the work of prevention and control of the epidemic. The tasks we are facing in the future will be more arduous and demanding.

First of all, I would like to say that, as Mr. Ma just introduced, we have taken many measures to avoid and mitigate these possible transmission risks in a timely manner. We require all provinces to formulate plans, enhance drills and remain prepared and vigilant. For cases that emerge during the process of people returning to work and school, emergency measures must be taken in a scientific, targeted and timely manner. The most important thing is that relevant departments and medical and health institutions should implement the "four early" measures of early identification, reporting, isolation, and treatment to monitor and report both confirmed and suspected cases. At the same time, it is necessary to strengthen the epidemiological investigation and follow-up monitoring of close contacts to ensure 100% screening, quarantine, and treatment.

Moreover, in order to ensure epidemic prevention and control after resumption of work, production and school classes, we also need to adjust relevant measures in a timely manner. The adjustments will take place in the following three aspects: First, they will be more flexible. Second, the unified requirements formerly adopted nationwide will be differentiated in terms of the circumstances prevailing in different regions. Third, prevention and control measures will be more targeted. In addition to preventing and defusing potential risks in a timely manner, we have made an overall deployment of work in the following aspects: First, we adopt differentiated management measures for employees. To be more specific, we enhance health monitoring among employees, and adopt targeted measures. At the same time, we guide them to take their own strict precautions. By doing so, we will be able to respond promptly and effectively once there is a problem. Second, we strengthen prevention and control measures on transportation. We have proposed a series of necessary measures, such as launching special trains, ensuring passengers are seated at a safe distance from each other, as well as providing ventilation, disinfection and body temperature checks, in a bid to reduce risks of transmission during journeys. In labor-intensive regions, the return of laborers needs to be organized well so as to avoid a gathering of the population, and ensure the smooth resumption of work, production and school classes. Third, we will ensure the implementation of the accountability mechanism. We have made clear the responsibilities that communities, enterprises and schools must assume in the epidemic prevention and control, and we have also issued specific instructions for shopping malls, hotels, nursing homes, social welfare institutions and rural areas in general, so as to ensure all the administrative regions, departments, enterprises, as well as families and individuals will fulfill their responsibilities, and carry out prevention and control measures effectively. Fourth, we strengthen technological guidance and launch more education activities to raise public awareness. In order to ensure the epidemic prevention and control becomes even more scientific and targeted, we have issued 15 highly operable plans covering measures that can be adopted by communities, enterprises and schools, so as to provide more much-needed protective knowledge to the general public, and guide the joint prevention and control work.

Going forward, in order to prevent a resurgence of the epidemic during the resumption of work, production and school classes, the National Health Commission will designate supervision and guidance teams to guide the provincial (autonomous regional and municipal) localities in formulating action plans, and providing medical treatment and daily necessities. If there is a resurgence of the epidemic caused by malpractices, the relevant people will be held accountable. Thank you.

China Review News Agency (Hong Kong):

During the epidemic control and prevention process, the establishment of Fangcang shelter hospitals is a pioneering step. Can you brief us how many hospitals of this kind there are and how many patients can they receive? What kind of role do they play during the anti-epidemic battle? Thank you.

Ma Xiaowei:

Since the outbreak of the epidemic, the number of patients seeking treatment has grown dramatically. The shortage of medical resources and hospital beds made it hard to take in all patients and leave no one unattended, and we were facing mounting pressure as the flow of so many patients in communities and society might lead to the delay of treatment and the spread of the virus. Under the complicated circumstances, Vice Premier Sun Chunlan, head of the Central Guidance Team in Hubei, carried out frontline inspections and made the decision to set up Fangcang shelterr hospitals by renovating a batch of gymnasiums and convention centers in Wuhan city. Zhou Xianwang, mayor of Wuhan, guided the work and coordinated at the frontline, ensuring the renovation work moved ahead day and night. Party secretaries and heads of all districts in Wuhan held fast to their positions to ensure that all measures are fully implemented. The first batch of three Fangcang shelter hospitals with 4,000 beds was constructed in only 29 hours. The Central Guidance Team in Hubei dispatched 22 national emergency medical rescue teams, mobile cabins and three national mobile nucleic acid testing vehicles to work in Wuhan the very same night. A total of 76 medical teams with over 8,000 staff members entered the hospital in succession over the following days and started to work immediately, setting up facilities, receiving and treating patients at the same time. So far, a total of 16 such temporary hospitals with over 13,000 beds have been built and more than 12,000 patients have received treatment there. One in four of all COVID-19 patients in Wuhan were treated in a Fangcang shelter hospital with zero infection, zero death and zero recurrent infection rates. Currently, there are more than 7,600 patients receiving treatment at these temporary hospitals and 5,600 beds are vacant awaiting patients.

Looking back, the establishment of Fangcang shelter hospitals is a significant measure enabling expansion of the medical resources in a short time when other means were not immediately practicable. If all those patients had not been hospitalized for a long time, their mild symptoms might have become severe and wide-spread transmission might have occurred at the community level. Just imagine that if those patients had not been admitted to hospital in two or three days, the epidemic could have been transmitted more rapidly and we would have been faced with more challenging work. At the crucial moment, Vice Premier Sun Chunlan made a key decision. The Fangcang shelter hospitals play a significant and irreplaceable role in the epidemic control and prevention, and creates a new mode for expanding medical resources in a short time when responding to public health emergencies, disasters and epidemics in the future.

The large-scale application of the Fangcang shelter hospital is a landmark in the medical rescue history of our country. Its smooth operation is attributed to the firm leadership of the CPC and the government, the earnest effort of the medical staff and especially the cooperation by the Wuhan citizens and the understanding of the patients. The relationship between doctors and patients there is harmonious. Temporary Party branches were established at some Fangcang shelter hospitals and they have organized many activities beneficial to patients' recovery. The Fangcang shelter hospital is indeed a cabin of life.

Yangtze River Cloud:

To against the epidemic in Hubei province, and in Wuhan in particular, we need to focus on two key points: the prevention and control work in urban and rural communities, and the overall treatment of patients. The epidemic containment work should be moved forward into communities, so what have we done in this aspect? And what role does it play in the overall prevention and control work? Thank you.

Ma Xiaowei:

Epidemic containment in communities is a very important part of the overall prevention and control work, as it can help us prevent the spread of the infectious disease at source. It is because we have strengthened the epidemic containment work in communities that the situation in Wuhan has gradually stabilized. I'd like to ask Mr. Yu Xuejun to answer these questions.

Yu Xuejun:

Thank you for your questions. Each of us lives in a community, which is the front line of joint prevention and control work, as well as being in the forefront of the battle against infection being brought in from beyond the city and ensuring non-proliferation within the urban area. The National Health Commission has earnestly implemented the important instructions of General Secretary Xi Jinping and resolutely carried out the decision policies and deployment of the CPC Central Committee and the State Council. We have followed the requirements of the central leading team guiding the epidemic control work to ensure every effort is made to push ahead with prevention and control work in the communities across Hubei as well as in Wuhan to defend the front line.

First, we have put forward a series of specific prevention and control measures for communities to control the source of infection as early as possible and block transmission routes. Vice Premier Sun Chunlan and the central leading team's members went to the frontline many times and carried out investigations and research on the spot. Combined with the characteristics of epidemic changes and the actual situation of prevention and control work in Wuhan, they put forward a series of effective prevention and control measures for communities, such as the mode of "five persons helping one". This "five persons" refers to a community cadre, a member of the community's grid management organization, a medical staff of the community, a police officer responsible for the community, and a volunteer. While the "one" refers to a confirmed, suspected or fever patient, or a person in close contact with patients.

In addition, for example, we have organized more than 50,000 Party members and cadres, over 30,000 community's cadres, and over 50,000 volunteers from Party and government organs, enterprises and institutions at all levels to work within the various communities. They have carried out door-to-door inquiries in a thorough way to ensure all patients are admitted to a hospital. Through guiding the work with classified measures and pushing ahead with the work level-by-level, we have gradually achieved the stage of joint prevention and control, as well as mass prevention and control. With the frontline being moved forward, we have effectively contained the source of infection, blocked the transmission path, and defended susceptible populations.

Second, through establishing community's epidemic prevention and control teams, we have guided local governments to implement prevention and control measures. In accordance with the requirements of the central leading team, the National Health Commission has appointed experts on disease control and on community work to form these teams with local fellow comrades. They have visited almost all communities to push ahead with the implementation of territorial responsibility through answering questions and offering solutions, as well as tour guidance. They have found clues to problems in a timely manner and summed up good experiences and practices to help grassroots communities further implement prevention and control measures. Moreover, the National Health Commission has also appointed more than 300 laboratory testing personnel, along with environmental, health and disinfection professionals from provinces, regions and cities excluding Hubei province to assist it as well as Wuhan in carrying out laboratory nucleic acid testing, and providing inspection guidance for cleaning, disinfection and ventilation in major, special and public areas.

Third, we have organized multiple sectors to use the Internet and big data technologies to conduct full epidemiological investigations. Such investigations are the basic and first step to prevent and control the epidemic at the community level. Hubei province and Wuhan city have organized multiple sectors to carry out such investigations using modern technologies. The work has achieved good results and provided a strong support to the formulation of overall prevention and control measures. In accordance with the Central Guidance Team's requirements, the National Health Committee has also selected over 400 investigators from outside Hubei to assist and guide Hubei, especially Wuhan, to conduct investigations. Strengthening this basic work has created favorable conditions for targeted epidemic prevention and control.

Fourth, we have enhanced technical guidance as well as the communication of relevant scientific knowledge to the general public. This is necessary to raise public awareness of health and self-protection. We have organized experts to write a guidebook called "Guidance on Community-level Prevention and Control of the COVID-19 Outbreak".

This guidebook provides scientific and standard guidance to different prevention and control units such as neighborhood committees, quarantine sites and community health service centers. It also gives targeted guidance on certain venues and groups of people. We also distributed materials to teach the public how to protect themselves against COVID-19 and feel less stressed, both offline and online, especially through new media. Easy to understand, the materials are popular with local residents and raised their awareness of self-protection. As a result, COVID-cases from family gatherings have fallen.

Next, in line with the spirit of General Secretary Xi Jinping's important instructions, we will fully motivate local residents to discipline themselves and serve their communities. We will further promote epidemic prevention and control at the community level and consolidate our hard-won progress. We are determined to work with local people to win the battle against the epidemic.

CGTN:

Recently, the WHO-China joint mission on COVID-19 conducted investigations in Beijing, Guangdong, Sichuan and Wuhan of Hubei. It held a press conference in Beijing on February 24th. Could you introduce the investigations? And what impressed the mission most?

Ma Xiaowei:

Mr. Liang Wannian, head of Chinese experts on the joint mission, will answer this question.

Liang Wannian:

Thank you. From February 16th to 24th, the 25 experts on the joint mission visited Beijing, Hubei, Guangdong and Sichuan. We went to designated hospitals, Fangcang shelter hospitals, communities, relevant departments, and disease prevention and control centers. And we talked with government officials, epidemic-prevention workers, medical workers, community doctors and residents. All the places we visited left a deep impression on us. We came to know their specific situations. We will release our findings in an investigation report. A few days ago, we held a joint press conference in Beijing, and I think the report will come out soon.

Experts of the joint mission might have developed many distinct feelings and impressions during the nine days of research. I believe what has impressed them most is as follows. First, the COVID-19 is a new infectious disease that spreads fast with many unknown factors. Traditionally speaking, there is no vaccine to prevent it and no specific drug to treat it. The only workable approach seems to be to adapt to it gradually. In this case, the Chinese government has taken decisive measures focusing on the strategy of walling off its spread. Such measures have gained remarkable achievements in the past seven weeks, containing the prevalence of the epidemic, saving hundreds of thousands of lives, and offering a vital first line of defense against the epidemic in the world at large. Therefore, the strategy and decisive measures taken by the Chinese government have proved to be correct and more effective.

Second, with the deepening of epidemic prevention and control and the change in the overall epidemic situation, we should not only adhere to the unified leadership, strategies and requirements but also tailor measures to local conditions rather than taking one-size-fits-all approach in epidemic prevention and control. The experts have learned that it proves targeted, realistic and effective in practice to adopt flexible and tailored local strategies and measures on the basis of scientific evidence-based data and risk assessment results. This has left a deep impression on them.

Third, the experts have deeply realized that the non-pharmacological social interventions in China have gained remarkable achievements primarily due to the wide participation of the people in addition to the resolute decisions taken and leadership of the government, and the efforts made by specialized departments and other groups. It fully embodies the utter altruism in the Chinese people, especially those in Wuhan city and Hubei province, who are united in making concerted efforts. Hence, traditional and classic epidemic control methods together with the superiority of the Chinese system, the wide public participation by the whole population as shown in the Chinese culture, and the application of hi-tech means have created a powerful joint force. This is one of Chinese models and also the experience of China. Thank you.

Xi Yanchun:

The last question.

The Economic Daily/China Economic Net:

The central government has put forward measures covering 10 aspects in a recently issued notice on how to further protect and take care of medical staff. My question is, what measures has the National Health Commission taken in caring the medical staff in the frontline against the epidemic? Thank you.

Ma Xiaowei:

Since the COVID-19 outbreak, under the arrangements made by the central government, medical workers have bid farewell to their families and rushed to the front line to deal with the epidemic without hesitation and save lives. A total of more than 40,000 medical workers have been dispatched to join the local medical staff in Wuhan city and Hubei province and have been racing against time to combat the disease, leaving countless touching tales and creating miracles of life. More than 2,000 medical staff have been diagnosed with a COVID-19 infection. A number of doctors and nurses have died on duty. They have offered all their professional skills, shed their sweat, and even devoted their lives here, composing an impressive song of fighting against the epidemic. Here, I would like to express my deep condolences to the deceased compatriots and medical workers.

The severe fight against the epidemic has become a focused test of the spirit, professional integrity and willpower of medical staff in the new era, as well as a test of medical discipline development, technical progress, and improvement of emergency response capacity and organizational management achieved over the years. The medical and health staff have given a satisfactory answer to the call of the Party and the people. Their actions have elaborated and enriched the noble spirit of respecting life, healing the sick and rescuing those near death, and showing dedication and boundless love for patients. With the long-term devotion to their duties, they always polish their professional skills to relieve the pain of patients, and will always choose to fight on the frontline in spite of dangers whenever there is a major disaster or epidemic. In such a life-or-death situation their personality and glory shine through as they fulfill their missions. Practice has proved time and time again that they are trustworthy representatives of the Party and the people and an army of heroes with political firmness, technical excellence and noble medical integrity.

They are the guardians of people's health. These admirable people are loved by the whole society. A few days ago, General Secretary Xi Jinping issued an important instruction, emphasizing that medical workers are the backbone force in defeating the epidemic. He stressed providing comprehensive support for them to ensure their strength, morale and energy. The Central Leading Group on Responding to the Novel Coronavirus Disease Outbreak issued a Notice on Comprehensive Implementation of Measures to Better Protect Medical Workers. The content is of a complete concrete nature. The NHC issued guidelines on the implementation of the Notice, and is working together with relevant departments and local Party committees and governments to speed up implementation. We must do this work well and pass on the care and warmth of the Party Central Committee to every medical worker on the frontline. With regard to the implementation of specific measures, I would like to invite Ms. Jiao to give an explanation.

Jiao Yahui:

Thank you for your question. The NHC attaches great importance to the protection and care for medical workers, and has issued measures aiming to improve working conditions for those on the frontline, and ensure their mental and physical health. After the Central Leading Group on Responding to the Novel Coronavirus Disease Outbreak issued the Notice, the NHC acted quickly, issued regulations jointly with relevant departments, and took a series of measures, including the following aspects:

Firstly, in terms of salary, we have introduced policies together with relevant departments. For frontline medical worker in Hubei province, including medical personnel in the medical team, we have doubled the standard of temporary work subsidies, tripled the salary level, and expanded the distribution scope of health and epidemic prevention subsidies so as to ensure that all frontline medical personnel are covered. On February 25, the Ministry of Human Resources and Social Security and the Ministry of Finance also issued relevant documents to adjust the standard of health and epidemic prevention allowance. In terms of safety in practice, relevant policies have been issued to crack down on any illegal and criminal behavior involving medicines to be used during the epidemic prevention and control period, so as to provide a safe environment for medical workers. In addition, we have worked with various departments to mobilize relevant protective equipment provided from all over the country, and carried out nosocomial infection prevention and control training for medical workers. We have also strengthened protection for medical workers to reduce the incidence of infection among them. For the infected medical staff, we are taking active measures to provide full medical treatment.

We have actively raised funds to provide medical workers with daily necessities, including sanitation and hygiene items. The relevant financing, procurement and distribution are in the process of implementing. In order to ensure medical workers can have sufficient energy for the vital work in quarantine areas, we arranged nearby accommodation in hotels with help from the Wuhan authorities. We also scheduled special vehicles to carry them to and from work.

In addition, we have also taken measures to ensure the medical workers work in shifts so that they can have adequate rest. We have also dispatched 300 psychiatrists from around the nation to provide psychological counseling to frontline medical workers. At the local level, many effective measures and methods have been adopted in the identification of work-related injuries, the evaluation of professional titles and the assistance of medical staff facing family difficulties. The NHC also required our working groups in different provinces to strengthen their supervision and guidance, so as to ensure that these policies and measures concerning caring for medical workers are effective. Thank you.

Ma Xiaowei:

Here I would like to share a piece of news with you. Recently, with the approval of the Party Central Committee, the National Health Commission of China decided to recognize and reward a batch of model groups and individuals working on the fight against the COVID-19 outbreak in the national health system. The reward system will favor grassroots, frontline workers and high-risk positions. The commendation has an "on-spot" feature, that is, the commendation won't be granted after the epidemic. In the future, we will continue to carry out the commendation work, so as to ensure medical workers' strength, morale and energy in the fight against the epidemic. Thank you.

Xi Yanchun:

Ok, thank you again. That concludes today's press conference.

Translated and edited by Zhu Bochen, Lin Liyao, Wang Zhiyong, Wang Wei, Li Xiao, Wu Jin, Zhang Lulu, Zhang Junmian, Wang Yiming, Gong Yingchun, Mi Xingang, Zhou Jing, Yan Xiaoqing, Duan Yaying, Li Huiru, Zhang Rui, Huang Shan, Yang Xi, He Shan, Wang Qian, Guo Xiaohong, Yuan Fang, Fan Junmei, Geoffrey Murry. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Weng Tiehui, vice minister of education

You Jun, vice minister of human resources and social security

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

Feb. 28, 2020

Hu Kaihong:

Good morning, ladies and gentlemen! Welcome to the press conference being held by the Joint Prevention and Control Mechanism of the State Council. Today, we have Mr. You Jun, vice minister of the Ministry of Human Resources and Social Security, and Ms. Weng Tiehui, vice minister of the Ministry of Education with us. They will brief us on policies about encouraging employment of college graduates and rural migrant workers, as well as take questions on this issue. First, I'll give the floor to Minister You.

You Jun:

Thank you! Good morning media friends. Employment is a major issue that affects our lives and is a grassroot project that concerns everyone. The CPC Central Committee and the State Council attach great importance to this issue, especially at this critical moment as we give the final push in combatting the COVID-19 epidemic. President Xi Jinping has recently given important instructions to advance the work on coordinating the prevention and control of COVID-19 along with emphasizing economic and social development, and enhancing measures to keep employment stable in all sectors. President Xi pointed out that getting people back to work and stability in the job market is a top social priority, and he gave clear instructions on ensuring employment for some key groups of people. It has been emphasized to attach importance to the recruitment work on fresh college graduates, ensuring they can graduate smoothly this year and find employment as early as possible. Migrants workers working in low epidemic risk areas are encouraged to return to their places of work earlier, and proper arrangements will be made to help farmers from poverty-stricken areas to return to their work or find jobs. Chinese Premier Li Keqiang has presided over several consecutive executive meetings of the State Council to research and deploy various measures to keep enterprises and employment stable, making it clear of the need to encourage providing employment for college graduates and migrant workers.

The detailed arrangements of the CPC Central Committee and the State Council show their deep care and concern for college graduates and migrant workers. The epidemic outbreak inevitably has a huge impact on the economy, and it naturally affects employment, especially for college graduates and farm workers. The Ministry of Human Resources and Social Security takes stabilizing employment as its top priority. We will take active measures and responsibility to: expand economic development so as to offer more employment opportunities, support the development of all enterprises to secure their employment, ensure employment opportunities for some key groups, optimize training services to help people seek employment, and enhance employment seeking help and support to make it one of our basic tasks. With comprehensive policies and integrated efforts, we hope to implement more concrete and targeted policies and measures to help college graduates and migrant workers find jobs, or return to work, with the aim of minimizing the effect of the epidemic on employment and ensure stable employment.

This concludes my brief introduction, thank you.

Hu Kaihong:

Thank you, vice minister You! vice minister Weng will now give a brief introduction.

Weng Tiehui:

Thank you. Good morning media friends, ladies and gentlemen. After the COVID-19 outbreak, the CPC Central Committee and the State Council has attached great attention to the college graduate employment issue. General Secretary Xi Jinping has given a set of instructions requiring us to take all necessary measures to ensure employment for college graduates, and Premier Li Keqiang has also made some specific arrangements.

There will be 8.74 million college graduates this year, placing enormous pressure on the job market, and the employment challenge has become more difficult with the outbreak of the epidemic. The Ministry of Education has placed employment of college graduates at the top of its work agenda, and we are providing targeted guidance to students, while also working hard with other ministries and departments to explore employment opportunities for them, or provide more further-study options after their graduation.

We are actively pushing forward with our work in the following four aspects.

Firstly, we are trying our utmost to increase employment opportunities. We are working closely with the Ministry of Human Resources and Social Security to secure employment for college graduates, something which was explained by vice minister You Jun. We are working together to stabilize the situation. Meanwhile, we are emphasizing the increase of employment of college graduates in the sectors of basic education, basic medical service and community service. University graduates are also encouraged to join the army. We are working with related departments to offer more grassroot organization employment opportunities to college graduates and encourage them to consider these options.

Secondly, we seek to provide more channels for graduate students to apply for higher education. According to the decisions and plans of the CPC Central Committee and State Council, and considering the education and research capacity of colleges and universities, the academic disciplines needed to support national strategic development, and the shortage of school majors required for economic and social development, we are making great efforts to expand post-graduate student enrollment this year, on the premise of guaranteeing them a quality education. Meanwhile, we have already put great emphasis on some vocational education and applied skill education courses to meet the need for technicians in social services and management. The growing demands for such technicians will result in large numbers of students upgrading from junior college diploma students to undergraduates. We'll facilitate the transition. 

Thirdly, we are exploring more recruiting opportunities for college graduates. We have already launched 12 online campus recruitment services in cooperation with other administrative departments, and 18 other national scale recruitment activities are being prepared. We also require local governments to launch online recruitment and offer working posts in accordance with their regional, social and economic development situation. In addition we seek cooperation with job-hunting websites, a major trial after the COVID-19 outbreak. We have already selected five large commercial job-hunting portals including 51job, zhaopin, Bosszhipin, ChinaHR and liepin, and they will all set up a special free campus recruitment section, and offer their high quality services. Considering the graduate students' concern for the credibility of employers, we require these websites to strictly verify the job information published to ensure their accuracy and reliability. We have formed close relationships with these enterprises. The Ministry of Education formally launched the "24365 Online Campus Recruitment Service" today, offering 24-hour daily service all year round. We hope to create an environment which can enable both the job seeker and provider to confirm employment without having to meet each other. 

Fourthly, we will provide specific and targeted guidance for students in their job seeking. We require all colleges and universities to show care and concern to each individual college graduate. Career advisors, instructors, and even all supervisors for postgraduate and PhD students should pay close attention to the issue of job-seeking and employment of college graduates. Each student will receive individual guidance. The best efforts will be made to recommend the most suitable job for each graduate according to their interests and characteristics, providing guidance and adjusting their career expectancy. We hope they all find suitable employment in the shortest possible time.

That concludes my introduction and I am now open to questions.

Hu Kaihong:

Thank you, vice minister Weng! Now, we'll open the floor for questions. Please identify your news outlet before asking questions.

The Paper: 

This year, there will be up to 8.74 million students graduating from colleges and universities, a year-on-year increase of 400,000. Including the graduates from last year, there will be a large group hunting for jobs. Now, it's a pretty critical period for college graduates to look for jobs. I'd like to ask for the opinions of ministers about the influence of the COVID-19 outbreak on their employment prospects? And what measures will the Ministry of Education and Ministry of Human Resources and Social Security take to help their employment?

Weng Tiehui: 

Thank you for your questions! The COVID-19 outbreak has indeed posed challenges to the employment of college graduates. As employment means a two-way selection, graduates need to meet their future employers via campus recruitment and social recruitment events. However, the COVID-19 outbreak has made the events impossible to be convened. To facilitate their employment, expanding channels of employment will be our priority. First, posts and channels should be made available. This is the key focus of our job. Together with other relevant departments, the education sector will endeavor to expand channels of employment through the following five aspects:  

First, serve national strategies. Despite the impact of the COVID-19 outbreak on the job market, the booming development of emerging industries and transformation of traditional industries promise a great potential for job opportunities. We'll actively encourage college graduates to work for major national projects, programs, and key industries which have contributed quite a lot of jobs in the past. But I think the proportion is still not high enough, so we'll continue to work on expanding jobs in these fields. We believe after the epidemic our national strategies will demand more talents. 

Second, increase job offers in key fields. We encourage recruitment in some key fields across the country, for example posts for teachers of primary and middle schools, in particular teachers for high schools and kindergartens. Since the reform of the college entrance examination, the country has faced a structural shortage of high school teachers. So we need to provide more posts of this kind. Meanwhile, we'll also ensure that all government-funded students of normal schools will find a teaching job and be incorporated into the authorized national teaching group system once they graduate this year. And we'll strengthen supervision on this aspect. 

Third, we will guide graduates to work at grassroots work units. They are the main platform for absorbing graduates a great platform for young talents to reach their prime. The education sector will continue to implement the program to encourage university graduates to work at rural schools in poverty-stricken regions, and in the meanwhile cooperate with relevant departments to organize and implement grassroots employment programs to encourage graduates to head for the western region to support local development and rural areas to be village heads or work in agriculture, education, health care, and poverty-stricken sectors. At the same time, together with relevant departments, we'll introduce preferential policies to encourage small and medium-sized enterprise (SMEs) to employ more graduates. We can say those SMEs are the major employers for fresh graduates. Based on data of the past three years, almost 60 percent of fresh graduates chose to work for SMEs. Just now vice minister You also indicated that the Ministry of Human Resources and Social Security and other departments have also provided guarantees of different kinds to SMEs to fuel their development. All these originate from decisions made by the CPC Central Committee and the State Council. Better implemention of these policies will greatly boost employment of university graduates this year. 

Fourth, encourage enlistment. We'll coordinate the National Defense Mobilization Committee of CPC Central Military Commission to help enlist more fresh graduates by optimizing distribution of quotas, bringing forward health examination and some other measures. Actually more than half of the enlisted servicemen each year are college students. This year the proportion will increase. Meanwhile, fresh graduates will be the key group for enlistment. In the past, all college students were eligible for the enlistment. This year, we'll take measures to encourage fresh graduates to be enlisted, who are also showing strong interest in being in the service. 

Fifth, diversify employment modes. Currently, new employment modes are booming in our country, represented by tailored services, technological development, and paid online contents services. We encourage graduates to work in these productive and life services sectors as well as fields closely related to our livelihood like education, health care, and elderly care, which need more human resources. The Ministry of Education will continue to cooperate with other departments to expand more channels for employment. Thank you!

You Jun:

I'd like to add some words here. Their employment is related to the young college graduates' career prospects, family's well-being, and the country's future. This year, our country's fresh graduates will number 8.74 million, another record high. Coupled with the unemployed graduates of previous years, the total number is pretty large, creating quite high pressure. Last fall, when starting the recruitment campaign, together with the Ministry of Education, we rolled out a raft of policies and measures to facilitate their employment; we have also made the human resources and social security service available on campus quite early on. 

However, the epidemic outbreak is exerting a quite big impact on college graduates' job hunting. These days happen to be the golden season for spring recruitment. There is the popular saying of "golden March, silver April." Now, the raging epidemic has led to the drop of the requirements for human resources in some fields and suspension of off-line recruitment events. Therefore, due to the frustration in their job hunting, many graduates have shown their anxiety. We sympathize with their feelings and are very concerned about the situation. The CPC Central Committee and the State Council have attached great importance to employment of college graduates and President Xi Jinping in particular gave instructions, requiring efforts to ensure their smooth graduation and early employment. For that, coordinating with other departments like the Ministry of Education, we have swiftly adjusted and introduced a series of policies and measures to cope with the new changes in job markets. 

First, expanding employment channels. We'll quicken the improvement and implementation of employment and entrepreneurship policies, to encourage companies to absorb graduates, guide graduates to work in the grassroots units, support some of them to start their own businesses, and facilitate their application for posts in governmental departments and public institutions, leaving no stone unturned in our efforts to aid their employment. 

Second, optimizing recruitment services. We'll introduce more online recruitment events, and offer online guidance and counseling by organizing hundreds of career supervisors to present "cloud-based classes." Once the epidemic comes to the end, career service agencies and market service institutions of all kinds across the country will be mobilized to introduce specialized on-site employment activities in high density. 

Third, expanding probation opportunities. This year and next year, we plan to organize millions of graduates to work for trial period, trying to enrich their work experience, improve their eligibility for employment, and enhancing their competitive capacity in the job market. For enterprises that provide such posts, they'll receive policy subsidies for 3-12 months.   

Fourth, emphasis on targeted help. For those graduates who have not found jobs after leaving their schools, they can register with the education authorities that will provide them targeted help with focus on those graduates from a registered poverty-stricken household or a family with no one holding a job. 

Meanwhile, we'll always give focus to graduates of Hubei's colleges and universities and those from Hubei. We'll actively cooperate with the relevant departments to take targeted assistance measures to give them help and create equal employment opportunities for them. All in all, we'll do our best to aid our graduates to land their jobs or start their businesses, thus making them able to tap into their talent and realize their dreams. Thank you!

CCTV News:

My question is for vice minister You Jun. CCTV News' netizens have shown their great concern about the employment of migrant workers. A meeting of the State Council discussed issues about expanding employment of migrant workers, increasing subsidies for their employment, stabilizing their posts, and widening channels to facilitate their employment in their hometowns or places near their hometowns. So how is the overall situation of migrant workers' employment? What difficulties are they facing in seeking employment? And what measures and plans has the Ministry of Human Resources and Social Security introduced? Thank you! 

You Jun:

Thanks for your questions! Migrant workers have constituted the major body of our country's industrial workers. In 2019, their total population reached 290 million, out of which 170 million worked outside their hometowns including 75 million not working in their home provinces. On the whole, most of them are front-line workers, showing great flexibility in their employment, which make them bear the brunt of epidemic. For that, General Secretary Xi Jinping has attached great importance to their employment, and given instructions multiple times about the issue. We'll implement General Secretary Xi's instructions and promote employment of migrant workers on the premise of ensuring epidemic control and prevention based on the following six aspects:

First, support work resumption of some workers. At present, some enterprises in east China still face labor shortages. Meanwhile, many migrant workers are held up in their hometowns in the central and western regions. Therefore, we have set up one-stop point-to-point service channels to help those migrant workers from low-risk regions to be back to work in a spaced-out scale in succession via such means as chartered buses, chartered trains, or train carriages. 

Second, help recruitment. We'll continually carry out online recruitment activities, promote online interviews and recruitment by video, and organize targeted labor service cooperation, helping enterprises to recruit migrant workers. 

Third, encourage employment in agriculture. We'll guide returned migrant workers to participate in local spring farming, preparations for plowing and sowing, and construction of agricultural infrastructure; and encourage them to find jobs in new agricultural businesses. 

Fourth, encourage employment in major projects. We'll further tap the employment potential of local major projects, and encourage related firms to absorb local migrant workers and people in poverty. 

Fifth, support entrepreneurship. We'll offer online entrepreneurship training, service, and capital support for those migrant workers who know techniques and the market, encouraging them to start their own businesses. 

Sixth, create posts in public sectors. For those poor migrant workers who can't go to other places to find jobs for the time being, we'll try to create temporary public posts like cleaning, disinfecting, and epidemic prevention, to guarantee their basic living. 

Migrant workers' employment is closely related to economic development, social stability, and improvement of people's livelihood. We'll introduce a variety of measures and try our best to stabilize and expand their employment. Thank you!

CNBC:

What kind of support is there for stabilizing employment and employees' salaries? Thank you

You Jun:

Thank you for your question, I think you want to know how to maintain stable and harmonious labor relations under the current situation, where some enterprises are facing production and operation difficulties and some workers are facing the risk of income reduction. We will mainly start from the following three aspects:

First, we will encourage enterprises and their workers to stand together to overcome the current difficulties. We will guide both sides to stabilize their posts through negotiations on adjusting salaries, shortening working hours, and rotating days off.

Second, we will provide some policy support. We will lighten the burden of enterprises by exempting , reducing, or delaying the payment of social insurance premiums, returning unemployment insurance compensation and providing subsidies for enterprises with stable, so that enterprises will not lay off employees or reduce the number of layoffs.

The third is to supervise and guide enterprises that really need to lay off employees to regulate layoffs according to laws and regulations, in a bid to prevent illegal layoffs, and so effectively protect the legitimate rights and interests of workers. Thank you.

China Daily:

On February 25, the Standing Committee of the State Council introduced a number of measures to encourage the employment of college graduates and migrant workers. Among them, the measures to expand the enrollment of postgraduate students and that increasing the number of students upgrading from junior college diploma to university degrees have attracted wide attention. I would like to ask vice minister of Education Weng Tiehui for more details on this. Thank you.

Weng Tiehui:

Thank you for your question. The expansion of the enrollment of postgraduate students and increasing of the number of students upgrading from junior college diploma to undergraduate degree is a major strategic decision made by the CPC Central Committee and the State Council, with the overall situation of China's economic and social development in mind. It is based on the current social situation and has a long-term aim. The Ministry of Education will do relevant work to implement those decisions and arrangements. First, we will make rational plans on the size of  enrollment for different universities. With the strong support of the National Development and Reform Commission, the Ministry of Education will take comprehensive considerations of the national economic and social development demands, the financial support, and the conditions of running colleges in different places. At present there are around 440,000 postgraduate supervisors, and 12,000 programs for Master's degree. In recent years, more than 2,000 new graduate programs have been added. Based on our capability, we will determine the recruitment scale of different universities, giving more opportunities to universities in central, west and northeast China. This year, we have made a basic calculation and found out that the enrollment of postgraduate students may increase by 189,000 compared with the number of last year. The number of students upgrading from junior college diploma to undergraduate degree will increase by 322,000 compared with that of last year. Next, it is important to implement measures to make specific plans for different provinces and universities, which shall be carried out scientifically, match their education capacity and ensure their education quality.

Second, we will focus on areas that serve the national development strategy and meet the urgent needs of people's well-being. We will guide those enrolled students to choose subjects that meet social needs so that after their graduation, employment will not be a problem. At present, there is a shortage of talent in areas that serve the national development strategy and meet the urgent needs of people's well-being. The increased graduate programs will focus on clinical medicine, public health, integrated circuits, artificial intelligence and other fields, which mainly focuses on the training of professional degrees, especially application-oriented high-level professional degrees. The students upgrading from junior college diploma to undergraduate degrees will be guided to vocational education and application-oriented programs. Their future job positions will be in the fields of preventive medicine, emergency management, elderly care service management, e-commerce and other majors. These majors will be in high demand in the future according to our research.

Third, we will be very strict with the enrollment and the quality of the courses. The Ministry of Education will guide related colleges to take quality as the core and to strictly recruit and cultivate students. Thank you.

Xinhua News Agency:

I would like to ask vice minister Weng Tiehui, you mentioned earlier that the Ministry of Education would carefully formulate the plan for this year's college entrance examination based on the development of the epidemic. What is the latest on this? Will this year's college entrance examination be postponed? Thank you. 

Weng Tiehui:

Thank you for your question. The college entrance examination, or Gaokao, concerns the vital interests of students and their families, and is also a major event in the social life of our country. The Ministry of Education attaches great importance to it. In accordance with the requirements of the central government, we are paying close attention to the development and changes of the epidemic and comprehensively studying and judging the impact of various factors on the organization of the examination.

On the one hand, we are consulting with relevant departments and local governments on the development of the epidemic.

On the other, we are also organizing experts to assess the impact of the epidemic on examination organization, examination room epidemic prevention, transportation, test preparation and printing, middle school teaching and other factors, so as to ensure the safety and health of every examinee and every staff member. This is something we must do. We'll keep close watch on it.

We have learned that students about to take the Gaokao and their parents are particularly concerned about the Gaokao plan. We will also pay close attention to their concerns. We will carefully study and formulate specific implementation plan and relevant w ork arrangements for this year's Gaokao. Thank you.

Hong Kong Economic Herald:

In the face of the impact of the novel coronavirus epidemic, what is the current employment situation of the labor force living in poverty? What are the difficulties and problems? What measures will relevant departments take to help them? Thank you.

You Jun

Thank you for your question. The most effective and direct way out of poverty is to increase employment for a family member, which will mean lifting the whole family out of poverty Last year, there were more than 20 million poor laborers working away from home, among which 40 percent were migrant workers working in other provinces. The sudden outbreak of the novel coronavirus had an impact on China's economy and employment and naturally had affected the poor labor force. At present, some of them have not been able to return to work and some employment opportunities and income have declined. Poverty reduction by providing employment is facing great pressure now.

CPC General Secretary Xi Jinping has attached great importance to this issue, stressing the importance of helping impoverished labor workers return to work in an orderly manner, of supporting leading enterprises and workshops to resume work and offer employment opportunities as soon as possible to help alleviate poverty. The Ministry of Human Resources and Social Security will work with the State Council Leading Group Office of Poverty Alleviation and Development to increase policy support for employment and poverty alleviation, focusing on the "five priorities" and "two focuses."

"Five priorities" : First priority is to resume productions. We will encourage model enterprises, workshops, cooperatives and other business entities that have achieved significant results in reducing poverty to resume work and production quickly, so as to increase the employment and income of the impoverished laborers. Second, priority to going out. We will give priority to the poor laborers when it comes to sending organized laborers to other places. We will do our best in personnel organization and transportation, ensure their safety, guarantee epidemic prevention and control, to realize "point-to-point, one-stop" centralized delivery of them to their posts. Third, priority given to absorbing impoverished labor force. We will encourage key enterprises involved in the production of epidemic prevention materials and daily necessities, as well as all types of agriculture-related businesses, to give priority to the absorption of impoverished laborers, and implement various subsidy policies. Fourth, priority to provide temporary work opportunities. We will develop a number of temporary public welfare posts related to epidemic prevention, and provide unconditional support for the impoverished laborers who cannot leave their hometown due to the epidemic, have no job, and cannot lift themselves out of poverty. Fifth, priority to provide services. We will take the impoverished laborers as the key target of the online Spring Breeze Action, implement a "one-to-one" plan, so that there is no blind spot, and provide care for all. Free online training will also be provided to upgrade the skills of impoverished labor workers.

"Two focuses" : First, we will focus our work on areas in extreme poverty in Tibet, Xinjiang, Qinghai, Sichuan, Yunnan and Gansu, we need to allocate more government funds, create more jobs, and provide labor services in other areas in a more orderly manner. Second, we will pay more attention to areas where the epidemic is most severe, such as Hubei Province, and support them in terms of funds, policies and guarantees.

Under the current situation, the prevention and control of the epidemic should be intensified, and employment and poverty alleviation should still be our focus. Therefore, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, we will do our best to reduce the impact of the epidemic on the employment of impoverished laborers. Thank you.

China Education Network Television:

We know that spring every year is the peak time for college graduates to hunt jobs. At present, as the epidemic prevention and control is still underway, universities have not started their new semester yet, thus on-site recruitment is suspended accordingly. May I ask vice minister Weng, what steps, under such circumstances, the Ministry of Education will take to help college graduates access suitable job information? Thank you.  

Weng Tiehui:

Thank you for your question. On February 5, we, together with related administrative departments, jointly issued a notice to temporarily suspend all kinds of on-site recruitment for college graduates. On-site recruitment is particularly significant for college graduates during the employment season. However, the current epidemic prevention and control has made it impossible to carry out on-site recruitment. On the premise of guaranteeing the overall recruitment work and ensuring the posts for graduates, we think that it is vitally important to keep all the students equally informed and great efforts will be made to ensure information of posts available for each student. To this end, we have actively concentrated efforts on the following aspects. 

First, different administrative departments coordinate with each other to increase supplies of posts. On the state-level, we are cooperating with related ministries and commissions, closely following the demands of specific industries for human resources, we have held 12 large-scale recruitment activities for the 2020 college graduates, and 18 more still in preparation. We primarily cooperate with the Ministry of Education and some administrative authorities, focusing on some specific industries. In March, we'll hold six online recruitment activities with focus on such fields as the e-commerce industry, state-level economic and technological development zones, strategic emerging industries, and key development fields. 

Second, we require the provincial and municipal authorities to mobilize local institutions and companies to carry out more online recruitment activities, as in different places organizations have their unique hallmarks, and as such, their enthusiasm and initiative should be fully mobilized. Provincial and municipal-level recruitment activities will be launched from March. 

Third, considering their existing disciplines, colleges and universities are called on to take initiative to contact potential employers to hold online recruitment activities of various kinds. Despite prevailing suspension of regular university operations, quite a number of institutions of higher education have already staged online job fairs tailored for graduates, sharing information of working posts. According to preliminary statistics, nearly 20,000 online recruitment activities at all levels will be held by colleges and universities across the country in March. The end of the epidemic will usher in the return of off-line recruiting, as at present, online recruiting proceeds primarily through administrative departments and schools. 

Fourth, the functions of social recruitment websites should be fully activated via multi-level concerted initiatives. We think that it's not enough to only rely on authorities at various levels and universities and colleges, we need to bring the role of different social sectors and enterprises into full play. Based on ncss.org.cn, a job website for graduates sponsored by the Ministry of Education, we seek in-depth cooperation with five recruitment websites, including 51job, zhaopin.com, bosszhipin.com, ChinaHR.com, and liepin, aiming to jointly provide employment services for graduates. Now these five will host the first batch of online jobs numbering at least 800,000, which relatively accords with the needs of college graduates and conforms to their specialties and abilities. More posts will become available thereafter. 

Meanwhile, to guarantee graduates' rights and interests, we require the aforementioned recruitment websites to strictly verify online job information published the employers. The authenticity and accuracy of the information of the recruiting units and posts will be ensured through the joint establishment of a blacklist system and third-party complaint channel. Information about the blacklisted employer or post on one website can be shared by other websites. Expansion of employment channels, as well as the security of the employment of college graduates will be ensured through platform establishment and information-sharing. 

With the efforts, we strive to make the job information of offline recruitment in last March and April accessible online, thus minimizing the negative impact of the epidemic on graduates. In cooperation with the five websites, we officially launch the "24365 Campus Recruitment Service" today. This is the home page, with the aforementioned five websites below (on-site display). This section is a special part providing free services for college students. Our media friends can check it out. Students can browse the websites anytime in any place, to look for jobs, and even sign a contract. Thank you. 

Economic Daily and ce.cn:

My question is for vice minister You. We are all aware that the post-Spring Festival period usually marks the peak season for rural migrant workers to return to cities for jobs. However, the huge impact of the epidemic is sapping the manufacturing and catering sectors. We want to know about the situation concerning the work resumption of rural migrant workers, and what difficulties will they be confronted with? What steps, to address these difficulties, will the Ministry of Human Resources and Social Security take to help the resumption? Thank you.

You Jun:

Thank you for your questions. Hosts of migrant workers, with a desire for reuniting with their families, would initiate journeys back home to savor the holiday festivities and return to work after the festival. However, this year has been overshadowed by a special predicament. Trapped in dire straits by the raging epidemic, numerous migrant workers dared not to go to other places, and some are reluctant to go, resulting in insufficient employment in enterprises in the eastern region and detention of migrant workers in the central and western regions. 

In accordance with the requirements by the central government on coordinating epidemic prevention and control and economic and social development, on the premise of ensuring epidemic prevention and control, we have taken the following measures, to help rural migrant workers from low-risk areas return to work as soon as possible: 

First, establishment of platforms is essential. We have launched a "point-to-point" employment information docking platform for rural migrant workers, encourage all kinds of enterprises to fill in and post job information and demands for work resumption. Through the platform local human resources and social security departments can master the information promptly, and realize the timely information docking for places with labor inflow or outflow. A special section has been set up to dynamically update work resumption information of enterprises, helping workers to timely know the information. 

Second, establishment of various mechanisms is also necessary. In concerted efforts with the authorities of public security, transportation, and public health, as well as China State Railway Group, we have set up a "point-to-point" service coordination group to assist migrant workers to return to work safely and orderly. We have improved the information communication mechanism, regular consultation mechanism, and addressed the cross-regional work-resumption difficulties by coordination in a timely manner, thus providing guarantees for regions and enterprises with concentrated demands for labors. Up to now, more than 800,000 migrant workers have been sent back to their posts through "point-to-point" transportation of chartered bus, flight, train and train carriages. 

Third, service is reinforced. Free online assistance has been continuously provided, the precise personnel-docking without personal contact is promoted. In this way, employers post their labor demands online, job seekers look for jobs online, and employment service provided online. Service guidelines for enterprise employment and for migrant workers to return to work have been issued to facilitate orderly and safe work-resumption by area. Some local authorities in provinces with inflow requirement of migrant workers have dispatched specially-assigned personnel to labor outflowing places to directly help enterprises already in operation to recruit workers at the expense of their own. 

Fourth, key enterprises should be guaranteed as a priority in our efforts to facilitate work resumption. A 24-hour labor dispatching guarantee mechanism for key enterprises is set up to dynamically adjust the list of enterprises. Human resources and social security services specialists are appointed, and the labor shortage is being resolved through a slew of approaches such as assistance for job-resumption, surplus-deficiency adjusting, tapping the potential of the local area, and exporting labor services. Up to now, the labor demands of 7,600 key enterprises have been addressed. 

At the same time, we have also strengthened coordination with the public health department to ensure the safe travel and employment of rural migrant workers by improving a series of epidemic prevention measures, such as pre-trip inspection, full-process protection and regular temperature measurement. Thank you. 

China Review News Agency:

May I ask vice minister Weng, what services and help the Ministry of Education will provide to college graduates with employment difficulties? Will the Ministry of Education give special consideration to college graduates in Hubei? Thank you. 

Weng Tiehui:

Thank you for your question. To address the issue of special groups' employment, especially the special groups among college students, is a vital part of our work in facilitating employment of college graduates, where lies our original aspiration and bottom line. We'll take the following measures:

First, we'll increase assistance to key groups. We'll first collect information of graduates of special groups, for example those from poverty-stricken families or with disabilities, and provide targeted assistance and offer tailored service for each of them by classifying them into categories. Preference will be given to them in job recommendation. The Ministry of Education has always attached great importance to the employment of these graduates, whose employment rate is higher than the national average. This year's situation is special as we are confronted with multiple difficulties, we will sort out the information of these students and offer "one-to-one" help to them. We'll be bound to make sure that they'll have the right place and position when they graduate. 

Second, we'll increase support tailored for college graduates in Hubei Province. Compared with college graduates in other regions, Hubei students, especially those from Wuhan, should be given more attention. Affected by the epidemic, they may return to school later. These students are not only in colleges and universities of Hubei Province, but also scattered in all parts of the country. Accordingly, we require all colleges and universities to offer more humanitarian assistance and accurate services for the employment of these students, especially graduates. Prior to graduation, they need to complete their thesis and collect data for experiments and research required for graduation. All these are practical difficulties faced by them. Responding to these, we will create favorable conditions for them. The Ministry of Education has issued relevant documents, requiring the extension of oral defense of the dissertation and degree audit, in particular for students from Hubei and Wuhan. Degree committees generally reviewed and approved academic degrees in July in summer in the past, but this year it is required that the degree awarding institutions can increase the number of meetings of the degree committee and carry out the degree awarding by stages and in batches. 

At the same time, all university students in Hubei, especially those in Wuhan, will return to schools much later this year. The Ministry of Education will strengthen the preferential policy in employment, graduation, and other aspects, targeting these groups of students. We have been in constant contact with the Hubei Provincial Department of Education and will accord them more preferential treatment across a myriad of fields, involving the rural teaching support program, grassroot projects of the central government, the postgraduate enrollment plan, and more upgrading places for students with junior college diploma to undergraduate degree. 

We will also hold special online recruitment activities for Hubei colleges and universities as well as Hubei students studying in colleges of other regions. Now we are preparing and actively coordinating with employers to extend the recruitment time, postpone the physical examination time, and postpone the signing for admission. In this regard, we will continue to launch relevant measures to carry out targeted work, so that Hubei students and graduates in Hubei universities can stay assured. 

Finally, the service guarantee for all graduates will be strengthened. When leaving school, college graduates who haven't secured job posts by July can keep their household registration files in the school for two years according to the regulations. This policy is not a new one. It is reiterated this year that it should be supervised and implemented. If students do not find jobs before leaving school, schools will be responsible for keeping their files and providing them service so that they can continue to look for suitable jobs without worrying about these things. For those graduates who find jobs within two years, we require colleges and universities to help handle employment procedures in accordance with the regulations tailored for fresh graduates. Thank you. 

Hu Kaihong:

The press conference is hereby concluded. Thanks to vice minister You and vice minister Weng. Thanks to you all. 

In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers:

Zhang Kejian, vice minister of industry and information technology;

Liu Guoqiang, vice governor of the People's Bank of China;

Tang Jun, vice minister of the State Administration for Market Regulation;

Xiao Yuanqi, chief risk officer and spokesperson for the China Banking and Insurance Regulatory Commission (CBIRC), and also director-general of the General Office of the CBIRC.

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

Feb. 27, 2020

Hu Kaihong:

Ladies and gentlemen, good afternoon. Welcome to this press conference organized by the Joint Prevention and Control Mechanism of the State Council. We have invited Zhang Kejian, vice minister of industry and information technology; Liu Guoqiang, vice governor of the People's Bank of China; Tang Jun, vice minister of the State Administration for Market Regulation; and Xiao Yuanqi, chief risk officer and spokesperson for the China Banking and Insurance Regulatory Commission (CBIRC). They will brief you on the work being done to support the development of micro, small and medium-sized enterprises (MSMEs) and assisting self-employed business owners. They will also take questions.

First, I will give the floor to Mr. Zhang. 

Zhang Kejian:

Ladies and gentlemen, friends from the media, good afternoon. small and medium-sized enterprises (SMEs) are the largest and most dynamic group of enterprises, an important part of the socialist market economy, and the key foundation of China's real economy. I just said that SMEs constitute the largest part of the market. But, how large it is? According to the fourth national economic census, there were a total of 18.07 million SMEs at the end of 2018, making up 99.8% of all legal entities. That is to say, the stability of SMEs will contribute to a sound economy.

The CPC Central Committee and the State Council attach great importance to mitigating the impact of COVID-19 on the operation of SMEs. General Secretary Xi Jinping emphasized that assistance should be extended to key industries and SMEs. Proactive policies should be formulated in advance to prevent enterprises from encountering difficulties and should be fully implemented with targeted measures. Premier Li Keqiang called for all regions and departments to establish special assistance mechanisms for enterprises, especially private enterprises and micro and small businesses, to help them overcome difficulties. According to decisions made on Feb. 25 at the State Council's executive meeting, financial institutions are being encouraged to provisionally defer loan payments and increase lending at concessional rates to MSMEs. Financial support for self-employed business owners should also be scaled up as part of efforts to help them counter the fallout from COVID-19 and ease their difficulties. 

The Ministry of Industry and Information Technology (MIIT) has implemented the decisions and deployments of the CPC Central Committee and the State Council and gives full play to the role of the leading group in promoting the development of SMEs as a coordinating office. Working with relevant authorities, we have analyzed the impact of the epidemic on SMEs and released a series of supporting policies including fiscal, tax-based and financial policies, as well as social security. For example, the Ministry of Finance has gradually lowered the value-added tax rate for small-scale taxpayers, and improved policies and measures such as entrepreneurship guarantee loans with discounted interest and financing guarantees. The National Development and Reform Commission (NDRC) lowered the price of electricity and gas for the companies in stages. The People's Bank of China took the lead by setting up 300 billion yuan of special re-lending loans related to epidemic prevention, and introduced loans with preferential interest rates in phases. CBIRC encourages financial institutions to provisionally defer loan payments and not rashly withdraw, cut off, or defer lending. The State Administration for Market Regulation has intensified its support for self-employed business owners. MIIT has proposed 20 measures in six aspects to help SMEs resume operation in an orderly manner. We have held conference calls and video conferences to discuss how to better help the resumption of operation and promoted the experiences to instruct the SMEs. 

A set of practical policies introduced recently have played an important role in alleviating the difficulties encountered by SMEs. We have seen progress in this regard. Statistics show that over 30% of SMEs have already resumed operation. In order to make the national and local policies readily available for these enterprises to check, we worked with www.gov.cn to create a special page on the State Council app that provides information on policies for SMEs amid the COVID-19. In this way, SMEs can better understand the policies, and make full use and benefit from them. I would also like to take this opportunity to call on our media friends to help publicize this service.

Next, we will resolutely implement the decisions and deployments of the CPC Central Committee and the State Council and give full play to the role of inter-agency mechanisms at all levels to promote the development of SMEs. We will step up the implementation of policies, promote the resumption of operation in an orderly manner, and help deal with difficulties facing SMEs as they start getting back to business. With these measures, we will ensure that SMEs overcome their difficulties and enjoy steady development. Thank you.

Hu Kaihong:

Thank you Mr. Zhang. Now, let's give the floor to Mr. Liu, deputy governor of the People's Bank of China (PBOC).

Liu Guoqiang:

Facing severe challenges posed by the outbreak of COVID-19, the PBOC has firmly implemented the decisions and deployments of the CPC Central Committee and the State Council in coordinating epidemic prevention and control with social and economic development under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. With early response and swift actions, we are determined to contribute to the final victory of the war against the epidemic and sound economic and social development . 

We have taken a series of targeted and effective measures. First was to use targeted tools to guarantee supply. PBOC has launched a re-lending scheme of 300 billion yuan that will support financial institutions in providing prime-based loans to key enterprises combatting the epidemic. With discounted interest rates, the actual lending rate for enterprises is an average of 1.28 percent, which is lower than the rate of no more than 1.60 percent set by the State Council. Second was to keep liquidity reasonably ample. PBOC recently injected 1.7 trillion yuan of liquidity via short-term reverse repo operations on February 3-4, which was vital for maintaining market liquidity and a stable financial market following the Spring Festival holiday. The short-term liquidity has been withdrawn as the funds matured, and market liquidity has stayed reasonably ample. Third was to induce the overall interest rate downward. The interest rates of open market reverse repos and medium-term lending facilities (MLF) fell by 10 base points respectively. On Feb. 20, the one-year loan prime rate (LPR) and the five-year LPR fell by 10 and 5 base points respectively, driving the overall rate downward. Fourth was to actively interpret policies and make our voices heard. By releasing newsletters, taking interviews and publishing articles, we have analyzed the targets of our monetary policy and financial support for the outbreak prevention and control. We have taken the initiative to communicate with the media and market, setting forth our policy intentions and enhancing transparency. 

All these measures have ensured that the liquidity of the banking system has remained reasonably ample and the financial market is stable during such a critical time when the whole country is focusing on epidemic prevention and control. The money market interest rate has been lowered, and the seven-day interbank reverse repo rate has been kept at around 2.2 percent. The stock market has recovered from the losses it suffered since the Spring Festival holiday and the exchange rate of yuan to U.S. dollar has fluctuated bidirectionally around the level of seven. The policies and measures China has taken to combat the epidemic have been well received by the financial market and all aspects of the society. The International Monetary Fund, the World Bank, and international financial community have highly appreciated our efforts. It is widely believed that the impact of the epidemic is temporary and limited, the Chinese economy will continue to show its strong resilience, and the Chinese government has ample policy room to maintain stable economic growth.

Recently, PBOC promptly strengthened its credit support for the resumption of work and production of micro, small and medium-sized enterprises in accordance with the requirements of the State Council's executive meeting. Playing a key role in driving economic development and creating jobs, micro, small and medium-sized enterprises are of great importance to the orderly resumption of work and production nationwide and matter greatly to the realization of this year's targets of social and economic development. Now, these companies have difficulties in employment, resumption of work, or matching industrial chains. They are also under great pressure in financial terms. Providing appropriate preferential support to these enterprises is a good way to stimulate the vitality of real economy entities and promote the high-quality development of the economy. It will also help advance the sustainable development of finance and smooth the virtuous cycle of finance and economy.

First, we will maintain reasonably adequate liquidity. Tools such as the medium-term lending facility (MLF), open market operations (OMO) and standing lending facility (SLF) will be comprehensively applied to meet the liquidity demands of financial institutions in supporting the resumption of work and production, reducing financing costs and maintaining the smooth operation of the financial market. The monetary credit and growth of social funds will be guided to correspond to economic development, stabilize macroscopic leverage ratio and price levels, properly counteract short-term downward pressure on growth caused by the epidemic, and maintain a balance between steady growth and warding off risks.

Second, structural monetary policy tools will be used to increase support for SMEs in their resumption of work and production with the law-based principle of market orientation. The enterprise list system has been implemented for the first-phase special refinancing, and funds are being restricted to ensure that low-cost funds precisely and accurately flow to major enterprises securing supplies at the crucial stage of fight against the virus. A total of 500 billion yuan ($71 billion) was recently added for refinancing and rediscounting to inclusively support eligible enterprises in a market-oriented manner. The refinancing rate for agriculture and small business has also been reduced by a quarter of a percentage point, from 2.75% to 2.5% as an incentive.

Third, the financial system will ensure synergy and coordination, and guide banks to make loans at preferential interest rates according to different categories. National banks are characterized by low-cost and comprehensive sources of funds, and should play a leading role as recent falling interest rate shave effectively reduced the cost of offering bonds and negotiable certificates of deposit. Targeted cuts of required reserve ratios will be assessed for inclusively financing in the next phrase to release more funds. Policy banks should play an active role in stressing counter-cyclical adjustment and tackling areas of weaknesses. These banks will support SMEs in their resumption of work and production by increasing the total amount of lending, providing special lines of credit, and offering loans at preferential interest rates. Local corporate banks are the main forcein serving local business and supporting SMEs. The People's Bank of China will provide them with low-cost funds and help them solve problems such as limited sources of funds and expensive capital to guide them to make inclusive loans for SMEs in their resumption of work and production.

Next, the prudent monetary policy will place greater emphasis on flexibility and moderation, while support for the real economy's recovery will be prioritized. Monetary policies will provide positive support in the fight against the virus as well as real economic growth including stabilizing expectations, expanding loan amounts, supporting according to different categories, giving emphasis to extensions, creating new tools and effectively implementing guidelines to minimize the impact of the epidemic on the economy and fulfilling the socio-economic goals for this year.  

Hu Kaihong:

Thank you, Mr. Liu. Now, I'll give the floor to Mr. Xiao Yuanqi.

Xiao Yuanqi:

Good afternoon, friends from media. Since the outbreak, CBIRC has firmly implemented the important instructions made by General Secretary Xi Jinping, and under the guidance of the CPC Central Committee and the State Council, made overall arrangements in financial service work for prevention and control of the epidemic, as well as socio-economic development. It has especially increased financial support for SMEs in their resumption of work and production in order to counter the virus epidemic and win the people's war and also total warfare.

First, the CBIRC has offered greater credit support for industries involved in epidemic prevention and control. CBIRC encourages banks and insurance institutions to endeavor to finance enterprises in areas such as health and disease prevention, the production and procurement of medical products, as well as the construction of public health infrastructure. CBIRC supports financial institutions to make full use of the special low-cost refinancing facility to provide preferential interest rate credit support. As of Feb. 26, loans issued to firms engaged in containing the novel coronavirus outbreak totaled over 953 billion yuan (about 135.8 billion U.S. dollars).

Second, the CBIRC has provided differentiated preferential financial services to hard-hit regions, enterprises and individuals. CBIRC encourages financial institutions to defer loan payments to a certain extent, lower lending rates, and provide more credit loans and medium- and long-term loans, as part of the effort to help relevant companies overcome temporary difficulties caused by the COVID-19 outbreak. Some banks have investigated the business involving existing line of credit in Hubei province, extending or renewing loans automatically for affected companies. Credit card centers of some banks have also deferred repayments for affected individuals. In addition, banks and insurers have fulfilled their corporate social responsibility and earnestly made donations to support virus-hit regions, the amount of which exceeded 2.5 billion yuan.

Third, the CBIRC has offered greater credit support for private as well as micro and small-sized enterprises. CBIRC has offered guidance for financial institutions to optimize the allocation of their internal resources, improve their incentive mechanisms, and strengthen the capacity-building of services. Greater efforts will be given to private, micro and small-sized enterprises to maintain reasonable loan growth. For inclusive small- and micro-enterprises in Hubei province, the lending rate has been slashed by 0.5 percentage points.

Fourth, the CBIRC has been giving full play to insurance institutions regarding their role in risk management and protection. CBIRC has guided insurers in setting up a "green channel" for the settlement of insurance claims, with priority being given to those infected by COVID-19 or those experiencing epidemic-related losses. For vehicles of logistic companies involved in epidemic prevention and control, as well as those affected by the epidemic and unable to pay the insurance premiums, their payment will be deferred to a certain extent. We support insurers in the donation of insurance to frontline medical staff as well as those engaged in disease control, so as to allay their worries. So far, over 15.7 trillion yuan of insurance has been donated to frontline workers by insurers, and the special COVID-19 insurance claim settlement fund has exceeded 76 million yuan.

Fifth, the CBIRC has worked to provide innovative financial services and improve the efficiency of its services. CBIRC urges banks and insurance institutions to conduct business according to urgency and importance, and improve the efficiency of financial services concerning epidemic prevention and control. As many companies and individuals used to travel to the office buildings for financial services, there is currently a growing need for online business via mobile banking, online banking and internet finance. As such, banks and insurance institutions should work to develop a comprehensive, stable and safe system accordingly. They should also provide financial services via video chat for clients who are unfamiliar with mobile apps, especially middle-aged and elderly customers. Nevertheless, it these customers do need to come to the office building for face-to-face financial services, banks and insurance institutions should carry out security and disinfection efforts and ensure these customers are not affected by the epidemic.

Next, the CBIRC will resolutely implement the deployments of the CPC Central Committee and the State Council. CBIRC will coordinate the epidemic prevention and control and the financial works concerning China's economic growth and social development, improving the accuracy, timeliness, as well as efficiency of financial services. At the same time, CBIRC will spare no effort in working to avoid systematic financial risks.

Hu Kaihong:

Thank you, Mr. Xiao. Next, let's give the floor to Mr. Tang.

Tang Jun:

Good afternoon, everyone. Following the policy decisions and deployments of the CPC Central Committee and the State Council, the State Administration for Market Regulation, together with other relevant departments, has recently put forward policy proposals on helping self-employed business owners mitigate against the impact of the epidemic. These proposals have been studied and approved by the State Council. I would like to introduce relevant considerations and major policy measures and then take any questions you might have.

The self-employed and private business economy is highly valued by the CPC Central Committee and the State Council. General Secretary Xi Jinping pointed out that this economy plays an important role in maintaining steady growth, promoting innovation, increasing jobs and improving people's livelihoods. Premier Li Keqiang stressed that we should step up efforts in formulating relevant policies to help self-employed business owners so as to ensure employment. To implement the important instructions of General Secretary Xi Jinping on coordinating epidemic prevention and control with economic and social development, the State Council executive meeting made a plan on Feb. 25 to support self-employed business owners in accelerating their resumption of work and production while effectively preventing and controlling the epidemic.

Self-employed business owners play an important role in the prosperity of the market economy and the expansion of employment. So far, a total of 83.31 million self-employed business owners have been registered in China, contributing more than 200 million jobs. However, the production and operation of self-employed business owners has been hit hard by the epidemic. At present, it is extremely important in terms of employment and people's livelihoods to help self-employed business owners solve their practical difficulties and resume work and production in an orderly manner as soon as possible.

The State Council executive meeting has taken a problem-oriented approach to release a series of supportive measures on the principles of the market and rule of law. 

First, we will strive to help self-employed business owners resume work and production in an orderly manner as soon as possible. Following the requirements for a targeted resumption based on different regions and levels, we will promote an orderly resumption of work and production by self-employed business owners depending on their business forms and take measures to guarantee their labor and logistical needs.

Second, we will cut the operation costs of self-employed business owners. We will increase the targeted support of low-interest loans, reduce or defer employers' social insurance contributions, implement a policy of reducing or exempting value-added tax, and reduce or cancel fees for inspection, testing, certification and recognition for self-employed business owners. We will also encourage local authorities to reduce or exempt rent payment for self-employed business owners based on the actual conditions.

Third, we will facilitate self-employed business owners' access to the market. We will provide convenient and efficient services to these businesses so as to further release resources of business sites and exempt them from registration in accordance with the law.

Fourth, we will offer more services to self-employed business owners. We will ensure electricity and gas supplies to businesses that are having difficulty paying fees, which will provisionally reduce their electricity and gas costs. We will give play to the supporting role of associations such as the federations of industry and commerce, and the association of individually-owned businesses as well as internet platforms.

Next, the State Administration for Market Regulation, together with relevant departments, will strengthen guidance and encourage local authorities to take specific measures depending on their actual conditions to ensure that policies are implemented. We will enhance publicity and interpretation of policies to make them widely known to self-employed business owners and ensure they enjoy the benefits. Local market regulators are encouraged to take the initiative in their services to help self-employed business owners resume work and production in an orderly manner as soon as possible.

Thank you.

Hu Kaihong:

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

China National Radio (CNR):

Mr Liu, as the deputy governor of the People's Bank of China (PBOC), would you please introduce what monetary credit the central bank has issued to support the prevention and control efforts involving the entire nation in fighting against the epidemic and what kind of monetary policies will be rolled out in the next phrase? Thank you, Mr. Liu.

Liu Guoqiang:

Thank you for your question. Your concern is a very important issue. Regarding the running of the economy and market in a special time during the epidemic, the PBOC has made all-out efforts to support the control work with timely responses and quick actions. The major targeted measures that we have taken for the resumption of work and production are as follows:

First, was to increase the role of reverse repurchases in the open market. The reserve repo, the successful rate of the medium-term lending facility (MLF), and the prices offered in the loan market, have fallen by 10 basis points respectively, fueling an overall decline of interest rates in the domestic market. The adjustments have played a decisive role in maintaining the liquidity of the stock market which opened after the seven-day Spring Festival holiday and stabilized the financial market. So far, short-term liquidity has been almost entirely soaked up and the liquidity of banks has remained ample and within an appropriate range. 

Second, was to allocate 300 billion yuan ($42.8 billion) in a refinancing program targeted at offering low-cost loans. In addition to the national banks, local corporate banks in 10 major provinces and cities, including Hubei province, will be financed before offering targeted loans to enterprises directly involved in the fight against the epidemic. The loans totaling 300 billion yuan will be allocated to nine national banks and those from the aforementioned regions to finance producers engaged in making commodities that fight the epidemic, such as face masks, protective suits and disinfectant. These enterprises, focusing on producing suits for medical staff or providing transportation services, have registered on our list, meaning they are entitled to be financed by the loans that the banks have borrowed from us. Both of the quantitative and structural approaches adopted are measures we have taken to maintain market stability and help claim the final victory against the virus. By Feb. 25, a total of 1,008 enterprises have been financed by the loans at an actual rate of 1.28%, which was lower than the requirement of no more than 1.6% stipulated by the State Council, due to the fiscal subsidies. The 7-day interbank repo rate has been kept around 2.2 %, indicating the market remains stable despite some fluctuations in the stock and exchange markets. The policies and measures we have launched have proved to be positive. 

Going forward, we will make our sound monetary policies more resilient and appropriate to prioritize the recovery and development of the real economy. These policies, achieved by stabilizing market expectations, increasing aggregated quantities, overseeing precise categorizations, highlighting loan extensions, creating financial tools and focusing on implementation, will continue to help fight the epidemic and support the real economy. We will take every possible measure to offset the impact caused by the epidemic on our economy and strive to reach the socio-economic development goals set for this year. First, we will make a good use of existing policies, ensuring that the policies, such as targeted refinancing, can continue to be applied to support the development of small-and-medium sized banks. By applying the monetary policy tools, such as the medium-term lending facility (MLF), open market operations (OMO), and standing lending facility (SLF), we are waiting for the right timing to launch last year's dynamic evaluations on the targeted cuts to required reserve ratios directed by the principle of financial inclusion to release long-term liquidity. Since some banks have already met the standards centered on financial inclusion, they are able to lower the level of their required reserve ratios and be stimulated to keep on improving their services in this regard. In addition, we will continue to advance reforms of the loan prime rate (LPR) to lead in a downward trend for both market and loan interest rates.

Second, we will carry out new policies and measures at an appropriate time to support the resumption of work and production. We will increase the rediscount and refinancing amounts to encourage banks to issue loans at preferential rates to micro and small-sized enterprises to help them resume work and production according to different categories. The financial institutions are driven to support these businesses by facilitating their access to loans. The banks are motivated to adopt more approaches and develop more tools to increase capital supplement. We have financed the banks with a considerable amount of funds at a low cost, which has greatly released the liquidity of small and medium-sized banks and lowered liquidity costs. However, to issue loans to enterprises, banks remained challenged by their limited capital. As the demand for loans issued from banks increases, we will design more preferential policies in the next phase to expand the funds in small and medium-sized banks to strengthen the banking system's capabilities in issuing credits and loans and to continue to a boost the real economy.

Xinhua Daily:

I have two questions. The first is regarding companies and industries hit hard by the outbreak. What policies do the regulatory authorities have in place in terms of loan rollovers, loan renewals, term renegotiations and tolerance of non-performing loans? Second, micro and small enterprises with low resilience have been hit the hardest by the outbreak. How will you determine if it is the outbreak that results in overdue loans and operation difficulties? Are there any specific criteria? Thank you.

Xiao Yuanqi:

Thank you for your questions. Regarding your first question, we have made the following decisions:

First, for micro, small and medium businesses affected by the outbreak, we support banking institutions in renewing and extending company loans due between Jan. 25 and Jun. 30, whilst the temporarily delayed repayment of the principal and interest can be postponed until Jun. 30 at the latest. For those which are seriously affected by the epidemic and take longer to recover, as well as those with high specificity and in particular industries, repayment may be further postponed as appropriate.

Second, we have made special arrangements for companies in Hubei province. The temporary extension covers all companies in Hubei, be it a micro, small, medium, or large company. We also encourage banking institutions to offer more favorable financing policies to companies affected by the outbreak in Hubei. Banks can set up a special credit quota, and performance assessments should be more weighted towards such companies as appropriate.

Third, we require banking institutions to clearly understand companies' arrangements for financing, and in particular, simplify approval procedures to increase efficiency, delegating moderate approval powers to branch offices. This move will help companies who are supposed to receive support get loans rapidly, and will increase the proportion of credit loans and medium- and long-term loans of micro and small companies, as well as the percentage of clients who obtain their first bank loan.

Fourth, we need to pay attention to the following aspects when offering companies and industries affected by the epidemic temporary loan extensions and renewals. First, we must focus on supporting micro, small and medium enterprises affected by the epidemic that operated normally before the outbreak and have good development prospects. Companies that had been run poorly before the epidemic are not our priority. Second, company operations, flow of credit funds and risks should be monitored and mastered to prevent certain companies from taking advantage of the opportunity for their own gain and to rule out moral risks. Third, we should adhere to the principles of "substance over superficiality," and "determining the actual risks." For epidemic-affected companies enjoying extensions, banking institutions should not adjust their client category, loan category or credit record, and instead retain the originals instead of downgrading them. Of course, if the companies cannot repay the principal and interest after a period of normal operations post-outbreak, banking institutions should downgrade them in accordance with the principle of the market and the rule of law.

As for your second question, the straightforward criteria are as follows:

First, industry-wise speaking, the hardest-hit industries are wholesale, retail, catering, tourism, culture and entertainment, transportation, and logistics. These are obviously the industries most affected by the epidemic and the priority for banking and insurance institutions in providing support.

Second, looking from a regional perspective, Hubei is undoubtedly the epicenter of the outbreak, and the surrounding provinces and regions are also the focus of our endeavors.

Third, from the perspective of a company's upstream and downstream situation, if the upstream and downstream companies belong to affected industries or regions, then the company itself would be hard-hit. So, these are the three criteria.

However, as industries and companies vary from one another, we should analyze the situation on a case-by-case basis and examine the details. Thus, in addition to these general principles and criteria, we require banking institutions to communicate with companies, and provide more accurate and targeted financial services according to the conditions of each company and help them out of difficulties. Thank you.

CCTV:

During the epidemic, the operations of many self-employed business owners and their businesses have been greatly affected. I would like to ask, are there any relevant policies to help support them? Thank you.

Tang Jun:

As I introduced earlier; the State Council has made a decision and will soon issue a series of policies and measures. These policies and measures are designed to meet the actual needs of self-employed business owners and truly help them solve practical difficulties. To formulate these policies, we have surveyed individual businesses through online questionnaires and onsite visits. Based on our research, we know the main difficulties faced by individual business owners. First, it is relatively difficult to resume work and production for them, as it is very hard to sell their products. They can't make money. Second, the pressure on rigid expenditure is relatively high. In addition to labor costs, there are rents and utilities fees. As far as we know, the rent and utility bills of snack shops account for about 50% of the total operating cost. For larger restaurants, rent and utilities account for around 15% to 20% of the total operating cost. As for barbershops, clothing stores, small grocery stores and so on, rent and utilities account for about 30% of the total cost. Third, their liquidity is stretched, and of course there are other difficulties.

The State Council has formulated a series of highly targeted policies and measures in response to the challenges and difficulties of self-employed business owners. To support them to resume work and production as soon as possible, the State Council emphasizes the need to strictly implement the policies by region, classification, industry, business format and form.

To help reduce the operating costs of self-employed business owners, our departments have developed a series of policies. To help increase financial support, our responsible comrades at the People's Bank of China has just instructed financial institutions to increase low-interest loans and provide targeted support to them.

In terms of social insurance, self-employed business owners who are insured by company standards for their pensions, unemployment and work-related injury insurances are subject to the deduction and exemption policy enjoyed by small, medium and micro enterprises.

In terms of taxation, from March 1 to May 31, 2020, value-added tax will be exempted for small-scale value-added taxpayers (including individual businesses and small- and micro-enterprises) in Hubei province. The levy rate for small-scale taxpayers in other regions has been reduced from 3% to 1%.

Rents are still a big expense for self-employed business owners. Local governments must formulate tax reduction and exemption policies, especially for individual businesses that rent their sites from administrative departments and state-owned enterprises. Local governments are encouraged to reduce rents based on actual situations. When renting operating houses or booths from other sources, the relevant local governments should introduce relevant preferential and incentive policies to encourage property owners to reduce or exempt rents for tenants.

In terms of facilitating self-employed business owners' entry into the market, the State Administration for Market Regulation proposes to facilitate registration and make full use of electronic means to provide registration services for individual businesses. At the same time, the deadline for annual reports of individual businesses has been extended from the end of June to the end of this year. Local governments at all levels should establish and improve their management systems for negative business sites as soon as possible, further release the resources of business sites, and better meet the actual needs of self-employed business owners for entrepreneurship and employment.

In terms of enhancing the services provided to self-employed business owners, in the first half of 2020, the "non-stop supplies despite fees arrears" measure will be implemented for individual businesses unable to pay their utilities fees, such as electricity and gas, due to the impact of the epidemic. For self-employed business owners in industries that are severely affected by the epidemic, such as trade, catering and food, the prices of electricity and gas will be reduced via cost reduction policies issued by the central government in phases. At the same time, we must give full play to the role of associations such as the All-China Federation of Industry and Commerce and the China Private-Owned Business Association for their coordination and communication functions. They can carry out measures to protect individuals' rights and interests, help publicity and education, and promote economic and trade exchanges, so as to solve their problems. We also encourage internet platforms to actively fulfill their social responsibilities, relax entry conditions, reduce platform costs, and help individual businesses expand their business models. Thank you.

Reuters:

I have two questions. The first is how is the actual situation of those SMEs and self-employed business owners that did not fully resume work and production? Are there any statistics? And the second, are local small-and-medium sized banks capable of supporting SMEs? Thank you. 

Zhang Kejian:

Thank you for your questions. As I just mentioned, there are huge numbers of SMEs which are widely distributed across the country and their situation is complicated. It is not easy to get comprehensive and accurate understanding of the situation of SMEs. In order to better understand their current situation , we conducted a questionnaire for SMEs regarding their work resumption and also asked the China Academy of Industrial Internet to analyze the situation of SMEs using big data. 

According to the monitoring data of 2.2 million SMEs using cloud platform, with the implementation of a series of preferential policies, there have been several positive changes although the rate of work resumption is still not high. 

First, the rate of work resumption has been steadily increasing. The rate of work resumption on Feb. 26 was 32.8 percent, an increase of 3.2 percent point over than on Feb. 23. 

Second, the work resumption rate of SMEs in the manufacturing industry increased quickly led by industrial chains of large enterprise. The work resumption rate of these enterprises on Feb. 26 was 43.1 percent, an increase of 6.2 percent point over that on Feb. 23. Meanwhile, the advantages of online offices and online education services have become noticeable. The work resumption rate of SMEs in industries of information transmission, software and information technology has surpassed 40 percent.

Third, the work resumption rate of SMEs has increased steadily in each province, with most increasing by about 1 percentage point per day. At present, the work resumption rate of SMEs in seven provinces surpassed 40 percent .

In general, the measures designed to support SMEs have resolved some problems to some extent. However, compared to sizeable enterprises, these SME's are more vulnerable to risks and are more affected by the epidemic, and face more difficulties. The epidemic has led to decreased orders, delayed resumption of normal operations, higher cost, and financial strain. The capital and supply chains create dual pressure on them. Some enterprises want to resume work as soon as possible to cut their losses, but they also worry about the risks. They are caught in a dilemma.

Next, we will focus on the following three tasks:

First, it is necessary to carry forward work resumption in an accurate way. We will ensure local governments take their responsibilities to set up a special aid mechanism, provide necessary material support for SMEs, simplify the approval process and help SMEs resume operation in batches. We will send liaison men to key provinces and cities in the next few days. These people will set off tomorrow. They will track and learn the resumption work in key industries and key enterprise, helping resolve problems, especially those of a cross-departmental and cross-regional nature.

Second, it is necessary to reduce the burden on enterprises. We will work with other departments to ensure implementation of favorable policies toward SMEs. We will also continue to clean up debts governmental departments and large state-owned enterprises owe to SMEs, thus reducing their financial pressure.

Third, with sizeable enterprises playing leading roles, we will mobilize SMEs resume production while implementing epidemic prevention and control work. We encourage SMEs to promote and apply information technology, share cloud computing resources, adopt the method of online work, carry out new modes such as collaborative R&D, remote operation and online services. Thank you.

Liu Guoqiang:

I want to add something about small and medium-sized banks. On the one hand, they are allowed to increase their lending rate by 50 basis points above the Loan Prime Rate to 4.55%. The question is: Is there any incentive for the banks to lend when the rate is increased to 4.55%? According to our judgement, there is an incentive for banks to lend because of lowered cost. The central bank now provides re-lending funds to small and medium-sized banks at the rate of 2.5%. When banks issue loans to their clients at the rate of 4.55%, there will be an interest-rate spread of more than 200 basis points, which provides fair room for the banks. On the other hand, we will conduct assessment and encourage banks to implement the lending, while we are trying to hammer out some supportive policies. Just as mentioned, we are replenishing capital to small and medium-sized banks, and granting them support in taxes and finance as well.

This question concerning the policy is very important, but it is hard to give a very clear answer at present. The State Council held an executive meeting the day before yesterday, and we made assignment accordingly yesterday afternoon, so it has just begun. Our plan is good, but we have to keep a close watch before we know how it works. Next, we are going to improve policies based on concrete conditions, and we hope our media friends will keep track of them, raise questions, and give suggestions. That is my answer about the incentive of small and medium-sized banks.

The other question is about sufficiency. There are two categories of re-lending. One category is the 300 billion yuan dedicated to anti-epidemic supply manufacturers. There is a surplus now, and with more companies added to the list every day, the loans are also increasing. Now, we see no need to make any adjustment, as long as we make full use of the 300 billion yuan. The other category is the 500 billion yuan for the quota of re-lending and rediscount. If the sum proves insufficient, we will consider increasing the quota. There may be another scenario, that is, as more enterprises resume operation, there will be more equity funds on the market. Then, we may not need so much capital in the future. We will also keep an eye on the policy and continue to optimize it. Thank you.

Xiao Yuanqi:

With regard to the second question you just mentioned, in addition to Mr. Liu's explanation, I would like to add some comments. Indeed, as you said, local MSMEs are the main customers of local small and medium-sized banks, and they are also affected most by the epidemic. Therefore, they definitely have some impact on small and medium-sized banks, mainly those in seriously affected areas.

Nonetheless, brick-and-mortar businesses were affected by the epidemic for only one month or so. There is a time lag for passing the effect on to local small and medium-sized banks. They are still capable judging from the current indicators of our small and medium-sized banks. Their capital adequacy ratios range from 12% to 13%. The liquidity ratio, especially the liquidity coverage ratio and the net stable funding ratio, are all over 100%. Therefore, from the perspective of liquidity and capital, they have the ability to further provide financing and other financial services for MSMEs. However, with worst-case scenarios in mind, we must be forward-looking, and we must consider if these small and medium-sized banks have the ability to provide support in the future. Thanks to the buffer period, we can take some measures in advance. Take the special re-lending program and other measures introduced by the People's Bank of China as example. The China Banking and Insurance Regulatory Commission requires that the repayment of principal and interest due during this period can be extended to June 30, and the period can be further extended for individual cases. These measures aim to keep the capital chain of the main customers of small and medium-sized banks from breaking. In terms of financial aspect, most affected MSMEs are seeing tight liquidity and limited sources of capital chain. We have tried every means to prevent capital chain ruptures among these companies. Such measures aim to support these enterprises who used to be main customers of these banks to continue their business.

In the future, we will further support small and medium-sized banks by opening green channels for capital replenishment and speeding up the introduction of new strategic investors. Other departments and local governments will also take corresponding measures to support small and medium-sized banks, so that they can better support MSMEs. Thank you.

Market News International:

How will you prevent the credit risk of small and micro enterprises and reduce the risk premium of banks when providing loans to micro, small and medium-sized enterprises (MSMEs)? Thank you.

Xiao Yuanqi:

Thank you for the question. Risk prevention has always been the bottom line of our supervision. The temporary arrangements we are adopting are not standards for deregulation; rather they are just a means to prevent risk. As I just mentioned, banks must help micro, small and medium-sized enterprises ease tension in their capital chain caused by the epidemic, so they can resume normal operations and production in an orderly manner. In fact, banks are preventing their own risks by doing this, because with their help, the high-quality clients will not turn into bad clients, and loans to these enterprises will not turn into bad loans.

In addition, banks should follow their original risk control standards and regulatory requirements when offering financial services to these enterprises. For example, we must not aid enterprises that did not operate normally before the epidemic. Therefore, we require banks to distinguish between enterprises struggling due to the epidemic and those that suffer from unrelated causes. For those enterprises who experience business failure due to their own causes, banks must include their loans into the list of non-performing loans based on risk classification. However, strong support must be given to those that are facing operation difficulties due to temporary impacts of the outbreak. Thank you. 

Liu Guoqiang:

I totally agree. The relationship between banks and enterprises is market-oriented and is a process of mutual selection. Our measures do not mean that enterprises that do not meet the requirements can also get loans. In addition, I want to add one point which is about the relationship between the finance sector and the real economy. The real economy is the foundation. Now many brick-and-mortar enterprises are facing temporary difficulties. If banks give them a hand, their performance will get better, if not, their business may get worse and even collapse. Most of the non-performing assets of banks are attributed to corporate closures. If these brick-and-mortar enterprises go out of business, then they can't pay their existing loans. So, banks should provide support for these firms. From the macro perspective, improving economic and financial circulation is good for reducing the non-performing assets of the banking industry. 

Hu Kaihong:

Time is limited, so now for the last two questions please.

Economic Daily:

My question is for Mr. Zhang. We have found that some small and medium-sized enterprises (SMEs) which possess greater capacity for independent innovation and a high degree of professional technology have been more capable of managing the risks resulting from the outbreak. However, have you developed targeted measures to help more traditional labor-intensive SMEs with a weak ability to resist risks? How can these enterprises realize transformation? Thank you.

Zhang Kejian:

Thank you for the question. You are very careful and professional. We have also noticed that some traditional labor-intensive SMEs have greatly suffered due to the epidemic，but some SMEs that are engaged in specialized, sophisticated, special and new areas have demonstrated a relatively strong ability to resist risks and can resume their work and production very quickly. Up to now, 53.6 percent of more than 20,000such SMEs at the provincial level have resumed work. Meanwhile the resumption rate of 248 outstanding companies in the four areas, as designated by our ministry, is 91.4 percent. This fully demonstrates that core technologies and capabilities are effective weapons for SMEs to cope with the impact of the epidemic and achieve transformation and development.

In the next step, we will further increase our efforts to provide assistance. We will do our best to work with related departments to help SMEs solve pressing problems such as cash flow shortages. We will guide them to continue their operations and support them to realize transformation and upgrading at the same time. 

The concrete measures are as follows:

First, we will support labor-intensive SMEs to improve their capacity for innovation. Following the important instructions made by General Secretary Xi Jinping, as well as the decision and deployment made by the CPC Central Committee and the State Council, we will step up efforts to cultivate outstanding enterprises targeting subdivision categories, highly specialized and with strong R&D capacities. With these measures, we expect more labor-intensive enterprises to transform and upgrade into professional, skilled and specialized SMEs, and become manufacturing champions in their respective sectors. 

Second, we will step up efforts to improve the digital, networked and intelligent development of SMEs. We will encourage SMEs to utilize cloud technology, and support them to integrate decentralized manufacturing capabilities by using a collaborative manufacturing platform. This will help them share technologies, production capacity and orders. We will strengthen the level of IT application of SMEs, and promote flexible production, management redesigns and data development. Amid the epidemic, we will step up our efforts to promote working online, remote collaboration, video conferencing, digital management and applications of industrial software. We think this will accelerate SMEs' integration and deployment of smart manufacturing technologies, and boost the construction of smart manufacturing systems, intelligent production lines and digital workshops. After the epidemic is curbed, I hope to invite you to visit some of the institutions and enterprises to see the smart manufacturing systems, intelligent production lines and digital workshops that I've mentioned. 

Third, we will provide financial assistance for entrepreneurship and innovation. We will give full play to 657 national public service pilot platforms for SMEs; 329 national entrepreneurship and innovation model bases for micro and small enterprises; more than 4,000 provincial-level pilot platforms and over 2,000 provincial-level model bases, which have all been identified by the Ministry of Industry and Information Technology, so as to provide service and facilities for enterprises' transformation and upgrading. We will work with the Ministry of Finance to allocate 10 billion yuan for 200 development zones within three years, in a bid to create special business entities of innovation and entrepreneurship, and help the labor-intensive SMEs cooperate with upstream and downstream enterprises in their supply chains to pursue integrated innovation. Moreover, the Ministry of Industry and Information Technology and the Ministry of Finance will jointly launch an innovation and entrepreneurship competition for the SMEs in 2020, with a focus on innovative projects regarding the prevention and control of the COVID-19. By doing so, enterprise innovation will be encouraged, and the implementation of these projects will, hence, be helpful for better innovation and entrepreneurship. Thank you.

CNBC:

I have two questions. First, major foreign financial institutions, such as the Federal Reserve, have expressed their concerns about the impact that the epidemic will have on the economy, as well as the rapid increase of cases abroad. What new monetary policies will the People's Bank of China introduce? Will the authorities further lower the interest rate? The second question is about the job market stabilization. Some companies would like to apply for some help to stabilize employment. Are there any measures in terms of the stabilization of wages? What are they? Thank you.

Liu Guoqiang:

Thank you. International organizations are worried about the negative impact of the epidemic on the global economy, and I am also very worried, and this worry has become a fact. The epidemic has had a negative impact on the global economy. Not only on China's economy, but also on that of other countries, as cases have been reported in many other countries. For example, trade, industrial supply chains, and financial markets have all been affected. However, most people believe that such impact is short-term, and it will neither change the fundamentals [of China's economic growth] nor its long-term trends.

What should China do to mitigate the impact on the economy inflicted by the epidemic? General Secretary Xi Jinping said we should focus on running our own affairs well. China is the second largest economy in the world, and its economic growth plays an important role in driving the world economy. Therefore, the sound growth of the Chinese economy is essential for a stable world economy. How can the forward momentum of the Chinese economy be maintained? Of course, we can make efforts in many aspects. In terms of monetary policy, on the one hand, we must adhere to a prudent monetary policy. China is one of the few countries that maintain a normal monetary policy. Many countries have adopted unconventional monetary policies, such as zero interest rate. But China is still far from adopting those unconventional monetary policies. Therefore, China has ample policy space and can cope with various challenges in the future. We must cherish and maintain this situation.

On the other hand, it is also necessary to keep the monetary policy that is flexible and appropriate and intensify counter-cyclical adjustments scientifically and steadily in accordance with the current economic situation. I mentioned some measures just now, such as the special re-lending programs totaling 300 billion yuan and increasing the re-lending and re-discount quotas by 500 billion yuan. These are structural monetary policy tools, but they also have an impact on the monetary aggregate. In terms of the monetary aggregate, we have maintained reasonably sufficient liquidity via standing lending facilities (SLF), medium-term lending facilities (MLF), open market operations, and targeted reserve requirement ratios (RRR) cut for inclusive finance. Another dimension is the price of funds. In terms of interest rates, the central bank has introduced the loan prime rate (LPR) as the only benchmark rate for banks' lending. Since the introduction of LPR, there has been an apparent downward trend in interest rates. Not only does the LPR itself fall, but it also drives the lowering of credit rates. Currently, there is still room for rates to decline. So we will continue to reform and improve the relevant mechanisms and tap the potential of the further declining LPR. In addition, we need to improve the transmission mechanism of monetary policy. The reform of LPR has been carried out smoothly over the previous period. At present, new loans are priced with reference to the LPR instead of the traditional benchmark lending rate.

You may have noticed that all the programs and measures we have introduced, including the 300 billion and 500 billion lending programs as well as the new lending by banks to enterprises, are benchmarked against the market-oriented LPR instead of the traditional benchmark interest rate on loans. That means a change of benchmark for the price of new loans. Another move will be converting the pricing benchmark of the existing loans to the LPR. Our original plan was to start the conversion on March 1. Will this plan change now? We don't think so. After careful research and investigation, we decide to continue to advance the plan as scheduled, which will contribute to strengthening the market's role in setting interest rates and guiding the interest rates to continue decrease. Of course, we must attach importance to the epidemic prevention and control, and promote online operations, such as mobile banking and online banking. For businesses that require on-site handling, we will guide commercial banks to operate based on appointments and make good use of automatic machines. Commercial banks are all making their respective plans, so the timetable is unchanged, but the progress may be at a different pace for different banks. Generally, I think it will be completed on schedule. Thank you.

Hu Kaihong:

In regard to the employment issue mentioned by the reporter just now, we will hold a press conference on that issue tomorrow morning. You are welcome to attend. Today's conference is hereby concluded. Thank you, speakers. Thank you all.

Translated and edited by Wang Yiming, Fan Junmei, Wang Yanfang, Zhu Bochen, Duan Yaying, Wu Jin, Zhang Jiaqi, Zhang Rui, Qin Qi, Xiang Bin, Li Huiru, He Shan, Yang Xi, Gong Yingchun, Huang Shan, Wang Qian, Zhou Jing, Zhang Junmian, Guo Xiaohong, Li Xiao, Wang Wei, Wang Yanfang, Jay Birbeck, Laura Zheng, David Ball, Geoffrey Murray. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

Read in Chinese.

Speakers:

Wang Hongxiang, deputy secretary-general of the Commission for Political and Legal Affairs of the Communist Party of China (CPC) Central Committee;

Zhang Shuyuan, vice-president of the Supreme People's Court;

Chen Guoqing, deputy prosecutor general of the Supreme People's Procuratorate;

Du Hangwei, vice minister of public security;

Xiong Xuanguo, vice minister of justice.  

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

Feb. 26, 2020

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference being held by the Joint Prevention and Control Mechanism of the State Council. A few days ago, the Commission for Political and Legal Affairs of the Communist Party of China (CPC) Central Committee worked with the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, and the Ministry of Justice to issue a document regarding their opinions to support the resumption of work and production in accordance with the law during the COVID-19 outbreak. Today we have invited Mr. Wang Hongxiang, deputy secretary-general of the Commission for Political and Legal Affairs of the CPC Central Committee; Mr. Zhang Shuyuan, vice-president of the Supreme People's Court; Mr. Chen Guoqing, deputy prosecutor general of the Supreme People's Procuratorate; Mr. Du Hangwei, vice minister of public security; and Mr. Xiong Xuanguo, vice minister of justice. They will brief you on this document and answer your questions. First, I'll give the floor to Mr. Wang Hongxiang.

Wang Hongxiang:

Thank you. Friends from the media, good morning. Since the outbreak of COVID-19, the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to the situation. General Secretary Xi Jinping is personally commanding and arranging the prevention and containment efforts, and has presided over relevant meetings, delivered speeches and made many important instructions, providing the fundamental basis for the coordinated planning of epidemic containment, and economical and social development. The central government bodies concerning political and legal affairs have earnestly studied and implemented a series of important instructions made by General Secretary Xi Jinping. Based on our roles and thorough studies, the Commission for Political and Legal Affairs of the CPC Central Committee has worked with the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, and the Ministry of Justice to issue a document regarding our opinions to support the resumption of work and production in accordance with the law during the COVID-19 outbreak.

The document first emphasizes that government bodies of all levels involved in political and legal affairs, as well as relevant officers, should earnestly study and implement General Secretary Xi Jinping's important instructions, and strictly follow the decisions and deployments made by the CPC Central Committee; meanwhile enhancing the "Four Consciousnesses" (enhancing political integrity, developing a better understanding of the general picture, following the core leadership of the Central Committee, and acting consistently with CPC Central Committee policy), strengthening the "Four Confidences" (confidence in the path, theory, system and culture of socialism with Chinese characteristics), as well as resolutely safeguarding General Secretary Xi Jinping's core status and the authority of the CPC Central Committee and its centralized and unified leadership. In accordance with their respective duties, government bodies involved in political and legal affairs should properly coordinate the epidemic prevention and control and the resumption of work and production, finding the right places in particular to provide high-quality, efficient, and strong judicial and law enforcement services for the orderly and smooth resumption of work and production, the stable realization of social targets, as well as the maintenance of economic and social order.

Currently, companies across China are resuming work and production, and they may encounter various legal issues during this process. With this in mind, the document, which is based on relevant legislation and fundamental policies, has proposed a total of 12 measures as well as specific requirements focusing on improving laws and regulations, providing standardized law enforcement and judicial activities, resolving disputes, and offering high-quality and efficient public services, to name just a few.

The draft document features "three priorities" and "three emphases."

First, we should prioritize the rule of law, and place strong emphasis on the legality of the measures we adopt. General Secretary Xi Jinping has stressed that at the most crucial moment of epidemic prevention and control, it is more important than ever that we carry out the work according to the law. In addressing possible or existing problems in epidemic control and production resumption, we should further elaborate on legal and judicial standards and procedures in accordance with the basic spirit, principles and stipulations of the Criminal Procedure Law, the Public Security Administration Punishments Law and other relevant laws and regulations. By doing so, we will ensure that epidemic control and production resumption work is carried out in line with the rule of law.

Second, we should highlight problem-oriented legal services, and place strong emphasis on adopting targeted measures. For new situations and problems emerging from epidemic control and production resumption, as well as people returning to work and their employment, especially those much needed legal services and guarantees, we should guide all levels of judicial organs to further improve their public legal services and implement measures that bring convenience and benefit to the people.

Third, we should highlight targeted law enforcement, and place strong emphasis on adopting justifiable measures. The draft document stresses the importance of targeted law enforcement. On one hand, we should take tough measures to crack down on illegal acts and criminal activities, whilst on the other hand, we should enforce law in a tender manner. We will strictly distinguish commonplace criminal offenses from serious crimes, as well as commercial and civil disputes which take place during epidemic control and production resumption. We should strictly enforce judicial policies and work in accordance with standards and limitations. Lawbreakers should be dealt with accordingly, with some receiving severe and immediate punishment, and some receiving lenient penalties, both in accordance with the law. Also, we shall carry out effective ideological work in a gentle manner if necessary. Law enforcers should avoid using excessive force or uncivilized behavior, so as to demonstrate both the severity of law and a spirit of humanity.

That's all for my introduction. Thank you.

Hu Kaihong:

Thank you, Mr. Wang. Now, we'll open the floor for questions. Please identify your news outlet before asking questions.

CCTV: 

What specific rules are stipulated in the newly issued document about crimes related to the resumption of work and production amid the outbreak which are hindering epidemic control and the resumption of work and production, such as hoarding, price gouging and profiteering? What measures will the people's courts take to offer judicial safeguards against these illegal business operations? How will the police combat such crimes?

Zhang Shuyuan:

Thank you. During the period of epidemic prevention and control, it is more important than ever to strengthen legal protection for the resumption of work and production. The people's courts will conscientiously implement the guiding principles embodied in General Secretary Xi Jinping's important speech on coordinating epidemic prevention and control with economic and social development. We will exercise the trial function well to provide robust judicial services and safeguards for enterprises to resume business. The document stipulates clear requirements and tasks in the punishing of crimes that impede epidemic control and the resumption of work and production. The people's courts will take the following measures:

First, we will severely punish all crimes hindering epidemic control and the resumption of work and production in accordance with the law. The people's courts will act in accordance with the Criminal Law, related judicial interpretations and the "Opinions on Punishing in Accordance with the Law Crimes Hindering COVID-19 Epidemic Prevention and Control" jointly issued by the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, and the Ministry of Justice on Feb. 10. By exercising the trial function, we will severely punish illegal acts and criminal activities disturbing medical practice and epidemic control, as well as disrupting market and social order. These activities include crimes committed by organized gangs such as carjackings, meddling in logistics and disrupting normal traffic order. Tough penalties will also be given to those related to sabotaging transport facilities, hoarding protective gear, price gouging, and the production and sale of counterfeit products, fake medicine and other substandard medical equipment. In this way, we can safeguard people's safety and health, and ensure epidemic prevention and control work and the smooth resumption of work and production. Since the outbreak began, local people's courts in Hubei, Jiangsu and Shandong provinces have conducted trials for epidemic-related cases in a timely manner, producing a favorable social effect and vigorously maintaining the order for epidemic prevention and control.

Second, we will accurately observe the boundaries of laws and policies. Guided by the decisions and arrangements made by the CPC Central Committee, the people's courts will prudently conduct trials of epidemic-related cases in accordance with the Criminal Law and relevant judicial interpretations, while ensuring accurate application of laws based on the principle of "legally prescribed punishments for specified crimes" and the criminal justice policy of "combining punishment with leniency." We should not only effectively deter crimes to ensure epidemic prevention and control and the smooth resumption of work and production, but also protect the rights and interests of enterprises and ensure their normal operations. In cases where more lenient penalties can be taken in accordance with the law, coercive measures such as restricting personal and property rights shall be avoided as far as possible. Necessary liquidity and current accounts shall be reserved for companies if it is necessary to seize, distrain or freeze their assets. For business operators who are awaiting trial, the courts will be prudent in adopting coercive measures related to detention.

Du Hangwei:

Cracking down on illegal activity is the responsibility of the public security authorities. Since the outbreak, all levels of public security authorities throughout the country have been acting on the instructions of General Secretary Xi Jinping and the decisions of the CPC Central Committee. We have made every effort to fight the epidemic, prevent risks, protect people and property, and maintain social stability. While containing the epidemic, we also serve the public and ensure that economic and social order are restored.

Over the past month, the majority of the police, especially those on the frontline, have worked to fight the epidemic. Many heroes and heroic deeds have emerged during this period, and 49 police officers and auxiliary police officers across the country have laid down their lives in this service. They have established a new image of the "police serving the public" with practical action in the new era. Some of them made the ultimate sacrifice in cracking down on crime. The document, issued by the Commission for Political and Legal Affairs of the CPC Central Committee, stresses that we should severely crack down on all types of illegal and criminal activities that hinder containment of the epidemic and the resumption of work and production.

The public security authorities will act in accordance with the document to severely crack down on all kinds of criminal activities that hinder the epidemic's containment and the resumption of work and production, especially illegal and criminal acts that hinder medical processes and epidemic prevention, and which disrupt market and social order. Illegal hunting, endangered wildlife trading, gangdom crime, wire fraud, pornography, gambling and drug abuse, will also be clamped down on. As of Feb. 24, public security authorities across the country have handled 22,000 cases related to the epidemic and detained 4,260 people. This crackdown has effectively deterred illegal crime and effectively safeguarded the lives and safety of the people, creating a stable social environment for winning the battle against the epidemic. Take for example, criminal activities related to face masks. Some criminals took advantage of the shortage in masks to commit crimes such as making and selling counterfeit masks, and wire fraud. These illegal activities undermined the interests of the people. The Ministry of Public Security has attached great importance to this. We have carried out a zero-tolerance approach and severely punished such crimes. Working closely with the market supervision authorities, we investigated the cases and looked for clues from the public by encouraging people to report criminal acts. In these ways, we have worked to crack down on illegal activities at a rapid pace, such as major cases of manufacturing and selling counterfeit and inferior quality products and supplies. Up to now, we have concluded 688 cases of manufacturing and selling counterfeit and inferior quality protective products such as masks, and arrested more than 1,560 suspects. Over 31 million counterfeit and inferior quality masks and a batch of protective supplies, worth a total of 174 million yuan, have been seized.

Next, the public security authorities will coordinate the work between epidemic containment and economic and social development. While continuing to severely crack down on crimes that hinder prevention and control of the epidemic, we will act according to the law to correct the excesses relating to prevention and control of the epidemic and the crimes that hinder the resumption of operations. After receiving calls of illegal crimes concerning the resumption of work and production, the police must promptly respond in accordance with the law and provide enterprises with fast and efficient services. We will continue to fight crimes committed by organized gangs such as intercepting goods, dominating markets and using violence to collect debts. Illegal and criminal acts including price gouging, counterfeiting, obstructing traffic, and disrupting production will also be cracked down on. We will do our best to fight crimes to create a safe and stable social and legal environment for the resumption of work and production. Thank you.

Guangming Daily:

Many internet users are concerned about the procuratorial authorities not being able to provide either financial support or preferential policies for enterprises. As such, how can they work to support the resumption of work and production? Thank you. 

Chen Guoqing: 

The procuratorial authorities are supporting enterprises to resume work and production in accordance with the law. Based on procuratorial functions, we will fulfill our duties in the approval of arrests, prosecutions and litigation supervision, creating a sound legal environment for the resumption of work and production. The work will be carried out in the following aspects:

First, by performing duties on procuratorial work, the procuratorial authorities will severely crack down on crimes that jeopardize epidemic prevention and control, and punish illegal activities that hinder the resumption of work and production in accordance with the law. We will accurately observe the boundaries of laws and policies so as to establish a sound judicial environment for the resumption. In the crackdown on crimes that hinder the resumption, we will properly handle illegal acts and criminal cases, and correctly deal with the relationship between severe punishment and law-based handling of cases. As for companies suspected of committing crimes in production and business activities to promote the resumption of work and meet the needs of epidemic control during the outbreak, we will take into account the subjective intention of business operators, any harmful consequences and the circumstances of law violations, precisely determine the damage to society, and properly deal with the cases according to relevant laws.

Second, we will carry out the judicial concept of "fewer arrests and careful prosecution," including implementing enforcement measures cautiously. While fulfilling our procuratorial functions in cases related to enterprises, we will avoid compulsory measures such as restricting personal and property rights as far as possible. In principle, any property involved that may affect normal business operations will not be sealed up, seized or frozen. With regard to business operators who have voluntarily surrendered and made meritorious contributions, confessed or actively repented, and caused relatively minor social harm, compulsory measures of custody will in general not be taken. In the process of investigation, prosecution and trial of detained operators, we will examine the necessity of custody in a timely manner. In cases where the alternation of compulsory measures would have no impact on proceedings and detention is no longer necessary, we will alternate or recommend alternations of criminal compulsory measures in a timely manner. For example, since last year, the procuratorial authorities of Shenzhen have changed the compulsory measures from custody to the guarantor pending trial for 12 enterprise managers and technical management personnel related to seven companies, thereby enabling them to carry out normal production and operations. As for those who need to deal with urgent affairs in custody, we will, as far as possible, allow them to manage it in a proper way according to the specific situation of each case.

Third, we will give full play to the role of procuratorial authorities in legal supervision. We will carry out criminal procuratorial work conscientiously, including the filing of criminal cases, investigations and supervising adjudication. Meanwhile, we will advance procuratorial work in civil affairs, administration and public interest litigation, and perform procuratorial functions in accordance with the law to ensure the resumption of work and production. The procuratorial authorities must put forward corrective opinions according to the law on the sealing up, seizure and freezing of property involved in violation of the regulations. We will strengthen procuratorial supervision of civil enforcement actions related to epidemic prevention and control, propose immediate corrections to the illegal enforcement activities of relevant departments that affect the resumption of work and production and damage the legitimate rights and interests of enterprises and workers. For public interest litigation cases related to epidemic prevention and control, especially those involving producers and operators of important medical protection materials such as face masks and protective suits, we will pay equal attention to legal supervision and support for the resumption of work and production, actively extending our functions. Thank you.

China Daily:

The Ministry of Justice previously said it would build its online service platform, www.12348.gov.cn, as a closest legal adviser for the public. I would like to ask, what role is the platform playing during the outbreak? Especially in terms of ensuring the resumption of work and production. Thank you.

Xiong Xuanguo:

Thank you for your question. On Feb. 5, General Secretary Xi Jinping stressed the need to strengthen public legal education and legal services related to the prevention and control of the epidemic at the third meeting of the Commission for Overall Law-based Governance of the CPC Central Committee. The 12348 online and phone-based public legal services give full play to the advantages of "no face-to-face contact, no infection, convenience and timely response," and provide free legal counseling to the public and enterprises that resume work and production.

As of Feb. 24, the 12348 online service platform at both ministerial and provincial levels had received a total of 4,195 consultation inquiries related to the epidemic, mainly focusing on seven types of legal issues: labor and personnel, contract disputes, civil disputes, consumer rights, infringement disputes, social security, claims and debts. After the resumption of work and production, consultation inquiries related to contract disputes have increased, especially in terms of housing lease contracts and contracts for sales of goods. Legal counseling on housing lease contracts mainly concern contract extensions, dissolution of contracts, an inability to move in or out, returning rent when it's not possible to live in, and rent exemption because of no business operation. Legal counseling on contracts of sales of goods is mainly concerned with price rises caused by cost increases, and failure to supply on schedule due to road closures. All the consultation inquiries related to the epidemic have been replied to in a timely manner – the average response time being 66 minutes, and public satisfaction rate reaching 95.3%. During the epidemic outbreak, the 12348 hotline in Hubei province has provided round-the-clock service, and the hotline in Guangdong province has received more than 100 consultation calls a day related to the epidemic prevention and control. All of our platforms are effectively responding to people's concerns, providing psychological counseling, and protecting the rights and interests of enterprises.

In terms of public legal education, first, we set up special columns related to the epidemic prevention and control work on the official websites of the Ministry of Justice, online law popularization platform (legalinfo.gov.cn), online legal service platform (12348.gov.cn), our Weibo and WeChat accounts, and our app. The columns collect and illustrate a series of common legal issues and useful information related to prevention and control of the COVID-19 epidemic, and provide solutions to matters of public concern. Second, the National Office for Law Popularization published a Q&A booklet on legal knowledge related to the prevention and control of the COVID-19 epidemic. It covers 23 questions and answers, mainly based on the law on the prevention and control of infectious diseases and wildlife protection law, so as to provide legal reference for the epidemic prevention and control. It also illustrates 46 typical cases of 18 different types, mainly focusing on going out in violence of temporary regulations and price gouging, in order to popularize and explain relevant legal knowledge. Third, we initiated special campaigns to popularize relevant laws related to the epidemic prevention and control. We integrated legal popularization into legislative, law enforcement and judicial work related to the epidemic prevention and control using new media and technologies. We compiled and published legal knowledge and law popularization booklets on epidemic prevention and control, and made electronic versions available to readers to download and read for free. We have sent SMS messages about law enforcement to all cellphone users across the country. We have also made efforts to promote legal publicity related to the epidemic prevention and control into communities, rural areas and online. In doing so, we have effectively helped staff working on the frontline and the public increase their legal knowledge on epidemic prevention and control. Thank you.

The Cover.cn:

I have noted that some undue act occurred during the law enforcement in some areas recently, which sparked controversy. For instance, in Henan province, some law enforcement officials involved in epidemic control and prevention tied people up for their refusal to wear face masks. And in Chongqing, some people were paraded along the streets because they gathered to play mahjong. How should public security staff be prevented from taking excessive and brutal measures in law enforcement? Thank you.

Du Hangwei:

Thank you for your question. The issue you mention does indeed exist. The public security authorities have been focusing on and dedicated to refining the law enforcement methods by following stringent rules, standardized processes, unchallenged justice and appropriate actions. With the all-round effort among our officers, we will continue to improve our competence and credibility while fulfilling our duties. In the face of the sudden outbreak of the epidemic, some regions, especially the hardest-hit areas, adopted austere measures to stop transmission of the virus. While these methods have been effective, they have produced certain negative effects. Resistance has occurred in some communities where people have become anxious, frightened and distressed after being locked indoors. They denied our explanations and refused to cooperate. At the same time, some officials from local public security bureaus and related officials have adopted rude and brutal approaches, which should be stopped and regulated among our police. To prevent such cases from happening, the Ministry of Public Security issued a circular in a timely manner, requiring the police members to enforce the law in a standard and civil manner. Zhao Kezhi, the state councilor and minister of public security, has paid great attention to the issues and issued instructions on multiple occasions to redress the bold and barbarian practices, in order to prevent them from happening again.

Next, the Ministry of Public Security will guide local public security organs to keep in mind that we should put people first and enforce the law softly. According to the document, we should merge law enforcement methods, pay attention to humane care and resolve conflict. In the epidemic's prevention and resumption of production work, we should maintain a balance. On one hand, we must handle affairs strictly according to the law. On the other hand, concerning the current situation, especially for dilemmas faced by enterprises, we must endeavor to meet employees' demands for resuming work, and have clear boundaries when we handle cases and enforce the law. This is to prevent over-extending the range of law enforcement and its over-simplification. We also should properly apply closing down, detaining, or freezing measures to prevent illegal activity and violent acts which may affect the resumption of work and businesses' daily operations.

However, for criminal acts which severely harm the epidemic prevention work and resumption of production, public security organs should insist on strictly cracking down on them according to the law. For cases that have minor effects and belong to a gray area, we should mainly carry out educational measures in order to maintain a well-organized environment to resume work and production. While conducting public security patrols and responding to police reports, we should ease the sense of panic amongst the public, and use civil language to peacefully enforce the law. Thank you.

China News Service:

We have noticed the new document for judicial and law enforcement institutions on handling legal issues concerning the resumption of production alongside the prevention and control of the COVID-19 epidemic made clear that the coercive measures should be used with caution. What specific measures does the Supreme People's Court have in this regard? Thank you.

Zhang Shuyuan:

Thank you for your question. During the epidemic prevention and control period, the new document has put forward clear requirements on the issue of cautious enforcement measures. For the courts, the requirements are mainly relevant to enforcement measures usually taken during the trial stage of a case. It also manifests itself in the enforcement of a large number of civil and commercial cases.

In response to this, on Feb. 3, the Supreme People's Court issued a special work notice, requiring courts across the country to effectively implement the concept of good faith and non-abusive enforcement. For example, if the implementation of enforcement measures, such as the seizure, distraint and freezing of assets, make it difficult for enterprises to resume work and maintain normal operations, then the courts shall be required to enact a reasonable implementation plan according to the actual situations of the parties involved.

In other words, while protecting the lawful rights and interests of all parties, it is necessary to choose enforcement measures that have the least impact on economic production. When seizing real estate, assets or equipment, the courts should be flexible and try their best to make effective use of them. For those applicants that themselves are difficult enterprises, the courts should strengthen enforcement, ensure the timely availability of funds, and help enterprises resume work and production. For two parties that both are difficult enterprises, the courts should actively guide the two parties to reach a settlement agreement based on the actual situations of the enterprises' operations, and help them overcome difficulties together. 

While actively promoting resumption of work and production, we also need to consider other factors that demonstrate the humanitarian care of the judiciary. For example, if the applicant is in urgent need of money to treat illness or save lives, then the protection of life and health should be given priority. The lawful rights and interests of the applicant should not be arbitrarily harmed by the excuse of resuming work and production.

At the same time, in order to handle the large number of civil and commercial cases in a timely and efficient manner, courts at all levels should make full use of the smart court system that connects all courts nationwide through the IT application. Litigation services are not to be interrupted during the epidemic prevention and control period and cases must continue to be handled well.

We are also implementing online filing, online court sessions, and online auxiliary enforcement, as well as non-contact judicial safeguards and litigation services. These measures will be significant for the resumption of work and production, and also for resolving the conflicts between enterprises and their civil and commercial cases. Thank you.

Southern Metropolis Daily:

We have noticed that the number of new COVID-19 cases, which had been declining, has rebounded in recent reports, mainly due to a recent surge in cases reported at five prisons in Hubei, Zhejiang and Shandong provinces. How was the epidemic spread at these prisons? How is the treatment of the infected prisoners progressing? Thank you.

Xiong Xuanguo:

The question you raised doesn't have much to do with the theme of today's press conference, but the issue has been of great concern to all sectors of society. As such, I would like to make a response here.

As of Feb. 25, namely yesterday, a total of 555 confirmed cases, 19 suspected cases and four severe cases have been reported at five prisons in the three provinces of Hubei, Zhejiang and Shandong, which are the same prisons mentioned a few days ago. So far, there have been no cases of prisoners dying from contracting COVID-19 and no infections at other prisons across the country.

With regard to your question of how the epidemic spread in prisons, I would say that the spreading reflects certain flaws in prison management on epidemic prevention and control. First, there has been a lack of attention paid to the issue. The Wuhan Women's Prison in Hubei province, for example, is only 100 meters from the Wuhan Pulmonary Hospital. The officers at the prison commute used the same bus stop that patients had used, who traveled to the hospital before the city underwent lockdown. This could have caused the introduction of the coronavirus. Second, strict management is not in place. The outbreak in prisons like Hanjin Prison in Hubei province, Shilifeng Prison in Zhejiang province and Rencheng Prison in Shandong province, were caused by some prison officers failing to report contact with people from the epidemic area of Hubei province and isolate themselves thoroughly after contact, which led to imported cases.

The epidemic spread in prisons has fully exposed a lack of deep understanding on the issue, lax management of officers, weak implementation of prevention and control measures, and serious problems of formalism and bureaucracy in work at these places. The local governments have taken tough accountability measures. The lesson from the prison outbreaks is so profound that the national prison system will resolutely implement the spirit of the important speeches and instructions made by General Secretary Xi Jinping, fully recognize the particularity, complexity, gravity and extreme importance of epidemic prevention and control in prisons, and undertake strict fully-enclosed management with strict implementation, liability and accountability so as to resolutely eliminate loopholes in prison administration and contain the epidemic spread in prisons. Meanwhile, we will do our best to provide relief. Prisoners who develop a fever and respiratory symptoms will immediately be quarantined for medical observation. Prisoners diagnosed with COVID-19 will be given timely assistance equal to other members of society. At present, one severely ill prisoner is no longer in a serious condition following treatment, and another 11 patients have recovered. Thank you.

Legal Daily:

What role will the plea leniency system play in procuratorial organs' handling of enterprise-involved cases amid the novel coronavirus outbreak? Thanks.

Chen Guoqing:

The plea leniency system is a new criminal procedure introduced by the revised Criminal Procedure Law in 2018. It has played a decisive role in resolving social conflicts, promoting social harmony, improving procedural efficiency, and lessening the burdens on the parties involved. Under this system, criminal suspects and defendants who voluntarily confess to their criminal acts, plead guilty, and accept punishment will be granted leniency by judicial organs.

During this special period, procuratorial organs will, in accordance with the law, firmly crack down on epidemic-related crimes, which cause great harm and serious consequences. Meanwhile, we will also earnestly implement the policy of "striking a balance between leniency and severity" and the judicial principle of "fewer arrests and prudent prosecution." For cases with lesser social harms in which suspected enterprise owners and employees plead guilty, show remorse, actively compensate for losses, and eventually reach an understanding and a reconciliation, procuratorial organs shall make no unnecessary arrests and bring no unnecessary prosecutions, or submit proposals of a lighter sentence or sentence suspension to the courts according to the law. Procuratorial organs at various levels should apply the plea leniency system as much as possible to those cases that meet the requirements of the system. We should bring into full play the plea leniency system to punish crimes in a targeted and timely manner, conserve judicial resources, resolve social conflicts, and restore social order. Thank you. 

Economic Daily:

My question is on behalf of people in financial difficulty and migrant workers. If these groups are in need of legal assistance as the resumption of work and production continues, how should they get it? Will the requirements for getting legal assistance be lowered? Thank you.

Xiong Xuanguo:

General Secretary Xi Jinping made it clear that timely and effective legal assistance should be provided for people experiencing difficulties during the prevention and control of the epidemic. Recently, the Ministry of Justice issued several documents to offer guidance to judicial and administrative organs at all levels, lawyers, and volunteer legal service providers to adapt service models and provide timely and effective legal assistance for workers experiencing difficulties who are employed by enterprises that have resumed operation or production. These documents include a circular calling for the giving of full play to public legal services in the prevention and control of the epidemic; a circular that calls for the study, publicizing and implementation of the regulations on preventing employers from defaulting on migrant workers' wages and that calls for greater efforts to root out wage arrears; and a guide for lawyers to provide pro-bono legal services for enterprises that have resumed operation or production, mainly focusing on three aspects:

First, we have advocated online administration and offered guidance for workers with special requirements to access legal consultation and apply for legal assistance through online platforms such as the official website of Legal Services of China – 12348.gov.cn, phone hotline service, WeChat account, and mobile app. Some provinces, such as Jiangsu, Zhejiang, Shandong and Sichuan, instructed applicants to submit identity information and case files via WeChat. In this way, the examination and approval procedures can be completed within a day, as can the submission of case files to lawyers. Last year, the website opened a "green channel "which allows migrant workers to access help for non-payment of wages. As of Jan. 19, we have received 440 applications for legal consultation related to wage arrears of migrant workers and for consultation on demanding unpaid salary, as well as 229 complaints about problems encountered. We have responded to all of them in time. Amid the epidemic, detention houses are having difficulty arranging for duty counsels and legal aid lawyers to meet with suspects or defendants. As such, we arranged for lawyers to offer legal help and legal aid via remote video communication, phone, or utilizing the video conference function of the Xuexi.cn application, to address the problems which have emerged at this particular time.

Second, we have improved legal aid services for the public's convenience. For those who cannot submit applications online, we have adopted a reservation service allowing people to make reservations by phone or online. In emergency cases, we can provide door-to-door services. For those who must submit applications in person, we will open a green channel and simplify approval procedures to make sure that applications will be accepted and assigned on the same day. In some special cases, such as when immediate action is required to preserve the litigation and the statute of limitations is about to expire, we can offer legal aid in advance.

Third, we will appropriately relax the criteria for review of financial difficulties. When handling legal aid services related to epidemic prevention and control involved in applying for payment of labor, identifying labor relations and compensation for work-related injury, Guangdong and Shandong provinces have lowered their criteria for review of financial difficulties to the local standards for minimum wage. Those who cannot provide proof of difficulties due to the epidemic can apply with a written commitment. In view of situations where closure of enterprises, layoffs, economic losses and suspension of wages have led to difficulties for the people, we will work with other departments to establish an information-sharing and coordination mechanism to identify individuals who can be exempted from examination for financial difficulties.

Hu Kaihong:

Today's conference is hereby concluded. Thank you all.

Translated and edited by Zhu Bochen, Li Xiao, Zhang Liying, Wang Yiming, Zheng Chengqiong, Lin Liyao, Yan Xiaoqing, Wu Jin, Zhang Rui, Duan Yaying, Liu Qiang, Liu Sitong, Xiang Bin, Wang Qian, Yang Xi, Zhou Jing, Wang Wei, Zhang Junmian, Fan Junmei, Li Huiru, Wang Yanfang, Guo Xiaohong, He Shan, Jay Birbeck, Laura Zheng, David Ball. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Tang Jun, vice director of State Administration for Market Regulation

Yan Jiangying, vice director of National Medical Products Administration

He Zhimin, vice director of China National Intellectual Property Administration

Chen Xu, inspector of the Department of Food Operation of State Administration for Market Regulation

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

Feb. 25, 2020

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to the press conference of Joint Prevention and Control Mechanism of the State Council. Today, we have invited Mr. Tang Jun, vice director of State Administration for Market Regulation (SAMR), Ms. Yan Jiangying, vice director of National Medical Products Administration (NMPA), and Mr. He Zhimin, vice director of China National Intellectual Property Administration (CNIPA). They will explain measures taken to maintain market order and support resumption of work and production. They will also take questions. Also present is Mr. Chen Xu, inspector of the Department of Food Operation of SAMR. Now, I will give the floor to Mr. Tang Jun.

Tang Jun:

Friends from the media, good morning. First, I'd like to express my heartfelt thanks to all of you attending this press conference wearing masks at such a special time. Thank you for your attention and support for the work related to market regulation. Thank you for all your hard work. Now, I will provide a general picture of the measures we've taken to support work resumption. After that, you are welcome to ask questions.

General Secretary Xi Jinping attaches great importance to prevention and control of the COVID-19 epidemic as well as economic and social development. He has emphasized on many occasions that on top of solid epidemic prevention and control work, efforts should be made to fully support and organize various enterprises to resume production and ensure the stability of the industrial chain. At the Central Deployment Work Conference on February 23, General Secretary Xi Jinping made an important speech. He reiterated the position of promoting epidemic prevention and control and resumption of work and production in a coordinately manner. He outlined clear requirements for orderly resumption of work and production. Premier Li Keqiang has also guided enterprises' resumption of work and production extensively. SAMR has resolutely implemented decisions and work arrangements. We maintain a problem-oriented approach and implement precise policy measures. Together with NMPA and CNIPA, SAMR quickly promulgated Ten Policies and Measures to Support the Resumption of Work and Production.

In general, the fact that multiple measures have been taken is the first takeaway. Various functions of market regulation have been integrated to guide the whole regulation process. Multiple coordinated measures have been taken to enhance regulation effects. Second, swift action has been taken. SAMR acted quickly upon receiving the order. On February 15, we introduced ten measures to support the orderly resumption of work and production. Local administrations for market regulation quickly followed with corresponding measures. Third, strong steps have been taken to change governmental functions. Normal procedures have been amended. Regulation methods have been reformed and service measures have been innovated. All these efforts aim to improve the services of market regulation authorities.

These measures mainly cover five aspects. First, online services have been promoted. We are striving to drive reform to a deeper level and improve the "internet +" services model. Enterprise registration, applying for permits for food production and business, requesting qualification certificates for inspection and testing institutions and asking for anti-trust review on concentrations of undertakings can all be conducted online. We aim to make the whole process related to such services able to be completed online. Second, regular procedures have been simplified and streamlined. We've introduced numerous measures to streamline examination and approval procedures so as to reduce time and costs. We simplified the procedures that can be simplified, combined procedures that can be combined, and cut procedures that can be cut. For example, we reduced the time necessary to issue production permits to enterprises resuming or switching production as well as the wait for examination and approval of compulsory certificates. We streamlined procedures to obtain food production and operation permits. Third, urgent issues have been addressed immediately. For enterprises that shifted to production of emergency supplies such as masks and protective suits or producing drugs for epidemic prevention and control and even patent and trademark registrations related to the epidemic, green channels have been established to provide service to them and tackle special and urgent issues. For enterprises qualified for production but unable to submit required documents at present, production permits can be issued on the spot if they pledge to submit the documents later. For some qualified food production and operation enterprises, business licenses can be issued first and on-site checks can be conducted later.

Fourth, costs and burdens have been reduced. Strict measures have been taken to crack down on the collection of arbitrary charges and illegal fees. Based on the previous reduction and exemption of related fees, various certifying bodies and other technical institutes under the SAMR further has reduced technical services fees by 50 percent. Enterprises in Hubei Province, the epicenter of the COVID-19 outbreak, have been exempted from all kinds of verification, calibration, inspection and testing fees. Fifth, technical assistance and support has been carried out. Resumption of work and production requires services related to measurement, standards, certification, inspection and testing. These are the things we do as administrators of market regulation. We must ask enterprises what they need before taking the initiative to provide them with services and help including going directly to the enterprises to provide on-site services.

After the introduction of the ten measures to support resumption of work and production, we went straight to implementation and have already achieved early results. First, we stepped up efforts to facilitate enterprises' resumption of work and production. We have extended licenses for special equipment and renewed licenses by exempting reviews for 87 enterprises affected by the COVID-19 epidemic. A total of 22 inspection and testing institutes in 10 provinces and municipalities were authorized to handle 110 project expansions. Beijing alone has expedited issuance of business licenses and permits for 19 enterprises producing and selling epidemic prevention products. Procedures to apply for permits have been greatly streamlined. Implementation of notification-promise mechanism has made obtaining production permits for five raw materials for producing disinfectants used heavily in epidemic prevention and control period including calcium hypochlorite, sodium hypochlorite, bleaching powder, ethanol and peroxyacetic acid, as well as for two types of fertilizers for spring farming including complex fertilizer and phosphate fertilizer. The procedures took only one day, down from 30 days and 10 days, respectively.

Second, supervision has become more flexible. We are organizing sampling inspections on emergency medical supplies including protective suits produced by designated enterprises. We have strengthened quality supervision while ensuring that sampling inspections don't affect the normal operation of enterprises. During quality inspection of masks, for the small number of enterprises who failed to produce qualified masks, we neither fined them nor stopped their operations. Instead, we organized technical experts to visit the enterprises to help them improve product quality, determine the causes of problems and devise solutions. We strive to guarantee product quality without affecting regular production and operation of enterprises. Many provinces, autonomous regions and municipalities have optimized the management of the enterprise directory, establishing credit repair mechanisms and fostering better conditions for corporate financing. Third, technical support has been robust and timely. SAMR published a list of 55 national-level inspection and testing institutions on medical devices and protective equipment. We have also released information on over 170 provincial-level inspection and testing institutions across the country. As of February 24, 16,765 test applications for masks, protective clothing, and gloves have been accepted, and 11,089 tests have been completed, which effectively provides the necessary technical support to ensure the quality of medical protective equipment.

On the whole, we are serving enterprises heart and soul. We endeavor to understand their troubles, sympathize with their worries and help them solve problems. We will implement future measures with more details and greater effectiveness. Thank you.

Hu Kaihong:

Thank you, Mr. Tang. The floor is now open for questions. Please let us know your outlet when asking.

CCTV:

I have a question for Mr. Tang Jun. You just outlined ten major measures to help enterprises resume production. Do you know of any targeted measures the administration has carried out to solve specific problems enterprises are now encountering? Thank you.

Tang Jun:

Thank you. This is a very good question. It is universally acknowledged that enterprises are facing many difficulties. Our support for the resumption of enterprise operation almost all qualifies as targeted measures tailored to meet the most urgent needs.

First, we have widely encouraged "face-away-from-face" business processing to reduce personnel movement during the period of epidemic prevention and control. In recent years, market supervising authorities have gradually implementing a complete procedure for online business processing. During this period, we have strengthened existing measures and applied them in more regions. We have implemented online processing for the registration of enterprises, issuance of food production license and qualification for inspection and testing institutions.

Second, realizing that administrative licensing and compulsory certification were affecting resumption of operations, we introduced a notification-promise mechanism. Enterprises that have shifted to production of materials related to epidemic prevention and control still need licenses. Generally, it takes some time to file all the necessary paperwork. But now we will approve the production license immediately if the enterprise is well-equipped for production and pledges to produce the required files within a certain period. We have also adopted a special approach for food producers. While maintaining standards to ensure food quality and safety, a few food companies, especially companies with low risk, will get certificates issued before inspection. Other companies already have production licenses that are set to expire. Usually they last five years before you must apply for an extension. We have postponed the extension procedure. These are specific measures targeting difficulties now facing enterprises.

Third, we accelerated the conversion between international and domestic standards to help many export-oriented enterprises resume production faster. Many China's manufacturers export to the international market. Their products produced according to international or foreign standards cannot be sold in China according to existing regulations. So, we streamlined the shift between international standards and domestic standards, tapped their production potential, and supported resumption of foreign trade enterprises.

Fourth, prudent management of a list of enterprises engaging in irregular operations will help repair corporate credit. Some enterprises from across the country are on the anomalous directory. Getting on this list means restrictions for them in realms of governmental procurement, bidding and financing. We have announced that if they correct the thing that got them there, we will conduct credit repair so they can easily go back to normal production.

We have also proposed a series of measures in other aspects in terms of measurement standards, certification and accreditation, inspections and testing. These came about due to specific urgent requests from enterprises, for which we have been consistently proposing solutions like the ones I mentioned. Thank you.

China Daily:

We have a question about the "green channel" for administrative licenses related to medicines and equipment for the epidemic in the ten policies and measures. As you established this green channel for administrative licensing, what measures did the National Medical Products Administration take and what are they doing now? Thank you.

Yan Jiangying:

Thank you for your question. This is another very important issue. As we all know, medicines and medical devices are significant players in prevention and control of the epidemic. Since the outbreak, the National Medical Products Administration has fully implemented instructions from General Secretary Xi Jinping as well as arrangements from the leading group of the Communist Party of China (CPC) Central Committee on the prevention and control of the novel coronavirus outbreak and met requirements of the joint prevention and control mechanism of the State Council. Epidemic prevention and control are our top priority. We quickly opened a green channel to quickly approve medicines and medical devices to guarantee supply of materials, medicines and medical devices for epidemic prevention and control. The major measures are as follows:

First, relevant policies go effective immediately and work plans for fast approval of medicines and medical devices are developed quickly. An expedited working mechanism for examination and approval of medicines has been established and a special expert group for examination and approval of medicines and medical devices has been organized to ensure emergency examination and approval of medicines and medical devices still happen in a scientific and orderly manner. At the same time, we order provincial medicines regulatory bodies to support and encourage companies involved in producing medicine and medical equipment to quickly resume production and expand capacity.

Second, review and approval procedures are being accelerated, so products related to epidemic prevention can be released as quickly as possible. Registration of medicines used for epidemic prevention and control is being expedited while ensuring product safety and effectiveness. Special measures for the registration, production licensing, inspections and testing of medical products such as medical masks and medical protective clothing have been carried out. Approval processes have also been merged. For enterprises that shift to production of medical equipment, we have implemented emergency approval measures to deliver medical device registration certificates and production licenses lawfully while meeting the urgency of epidemic prevention. In the early stages, the National Medical Products Administration approved five new drugs including remdesivir and favipiravir for clinical trials. We also approved the nucleic acid diagnostic reagents produced by seven companies. Another three diagnostic products were approved on February 22. These three products included two diagnostic reagent for antibody (colloidal gold) and one nucleic acid detection reagent (isothermal amplification chip). The products of these three companies help provide rapid detection. By February 24, we issued a total of 134 registration certificates for medical protective clothing and medical devices, of which 93 were urgently approved during the epidemic prevention period. Of 84 registration certificates for medical protective masks, 21 were approved through emergency response. Of 225 medical surgical mask registration certificates, 67 were expedited. And 65 of 396 single-use medical mask registration certificates were issued through the emergency channel.

Third, we are providing timely support for enterprises and helping expand production capacity. Medical supervision authorities are strengthening guidance of enterprises through organization of a special working group. One-on-one service, full consultation, technical support and policy guidance will be provided to pharmaceutical and medical device manufacturers involved in epidemic prevention and control. For emergency supplies such as masks and protective suits produced by enterprises shifting production, the approval procedure for production qualification has been simplified. Inspection, the product registration certificate and production licensing has been integrated, and a fast inspection and testing procedure is being adopted. Meanwhile, we are also temporarily approving some self-inspection reports from enterprises. After on-site confirmation of the qualified enterprises, we immediately proceed to product registration and issuance of a production license. As for medicals supplies for epidemic prevention and control, provincial pharmaceutical regulatory departments have guided enterprises to arrange production to unleash production capacity and guarantee clinical supplies. As of February 24, daily production of medical protective suits, medical masks, nucleic acid detection kits and antibody detection kits reached 330,000, 844,000, 1.7 million and 350,000 per day, respectively.

Fourth, we have reduced registration fees in an effort to lift burdens on enterprises. We are exempting registration fees for coronavirus prevention and control products undergoing the emergency approval process for medical devices. The exemption also covers the registration fee for coronavirus treatment and prevention medicines in the special drug approval process.

Next, the National Medical Products Administration will put into action of the guiding principles from the important speech by General Secretary Xi Jinping at the meeting to advance the work on coordinating the prevention and control of the COVID-19 and economic and social development and start enforcing requirements to resume production. We will focus on the following tasks: First, we will speed up emergency examination and approval of medical and pharmaceutical equipment for epidemic prevention and control. Second, we will ensure provincial drug supervision and administration departments thoroughly implement requirements for epidemic prevention and control, strengthen guidance, serve and supervise enterprises performing transferred or expanded production, vigorously support enterprises in resuming production, and fully ensure the quality and safety of the medical devices needed for epidemic prevention and control. Thank you.

TheCover.cn:

There was a report that remdesivir, a drug developed by Gilead Sciences, Inc. in the U.S., has shown effectiveness in treating COVID-19. What is the patent situation in China? We saw some Chinese pharmaceutical companies claim to produce a generic version of the drug remdesivir. Has the State Intellectual Property Office commented on this? Thank you.

He Zhimin:

Thank you for your question. According to multiple reports, remdesivir is a new drug in development by U.S.-based Gilead Sciences, Inc. It was first used to treat diseases such as Ebola and Middle East respiratory syndrome. This drug has not yet been taken to market in any country in the world and remains in the clinical stage. Some U.S. news outlet reported that remdesivir had shown preliminary effectiveness in treating COVID-19. China has started clinical trials of the drug in several hospitals in Wuhan. Trials are under way, and we won't get the results until April 27. We are paying close attention to the findings of the trials.

According to the current public information, Gilead Sciences, Inc. has applied for eight patents in China related to remdesivir. At present, three patents have been granted and five remain under review. The protection scope of these eight patent applications covers the core structure and similar structure of the compound, crystal form, related manufacturing methods and application.

Medicine is a special commodity crucial for many people's life and health. At the same time, because of the huge required investment, long time and great risk of drug research and development, the industry needs strong intellectual property protection. According to the provisions of the Patent Law of China, after patent right are granted, except for exceptions provided for in the law, no entity or individual may manufacture, use, promise to sell, sell or import a patented products for the purpose of production and operation without the permission of the patent holder. What are the exceptions? They include patented technology for scientific research and test purposes, as well as the import of patented medicine to provide information needed for administrative examination and approval.

Medicine is also special products, whether developed through original research or generics, in that they need strict approval by the regulatory department before they can be put on the market. Pharmaceutical enterprises must produce and market patented products according to law, not only through medicine regulatory authorities, but also while respecting the property rights of patent holders. If a patent holder sees infringement, he or she can bring a lawsuit or submit a request for administrative arbitration. We will protect the legitimate rights and interests of the patent holder within the framework of the Patent Law.

Now that remdesivir is currently in clinical trials, we are quite concerned about its effectiveness and safety. We are also looking forward to the emergence of numerous other medicines that have shown promise in treating COVID-19 including existing medicines. At present, the prevention and control of novel coronavirus pneumonia epidemic has reached the most critical stage. We, along with scientific research workers and pharmaceutical enterprises, should keep the people's safety and health at the top of the agenda and show a strong force of solidarity and cooperation to win the battle. Thank you.

China Business Network:

I have a question on food security, which is closely related to people's lives. During epidemic prevention and control, what preferential measures have market regulation administrations introduced to help food production and operation enterprises resume work in an orderly way? Thank you.

Chen Xu:

Thank you for your question. During the unexpected COVID-19 outbreak, food remains the top concern related to people's daily lives among all the basic needs. According to features and regulatory requirements of food consumption during the epidemic prevention and control period, the SAMR issued a notice deploying market regulation administrations at all levels to strengthen food supervision in key fields, venues and links to ensure food security for all people. It especially encourages food enterprises to actively participate in the "three guarantees" campaign of stabilizing prices, maintaining quality and ensuring supply. Now, nearly half of the 7,000 enterprises participating in the campaign are leading food enterprises above designated size. They are playing an important role in the campaign by contributing greatly in driving the whole food industry to resume work and production in an orderly way to ensure the food supply and maintain market stability.

In addition to ensuring food security, market regulation administrations at all levels are analyzing the real situation of epidemic prevention and control as they leverage their assistance abilities and employ a wide variety of strategies to support food production and operation enterprises in resumption of work. Measures include the following:

First, licensing can be extended. During the period of epidemic prevention and control, if a food production and operation license expires, local administrations for market regulation can extend its validity until the epidemic situation lifts, which is a great convenience for relevant people.

Second, a license can be issued after a food production enterprise makes commitments. During the epidemic prevention and control, local administrations for market regulation can explore and implement a promissory commitment mechanism in combination with food security risk classification management. For new enterprises applying for food production licensing and enterprises applying for a change in food production licensing that normally requires on-site verification, provincial-level market regulation administrations can pilot in accepting promissory commitments from low-risk food enterprises and granting permissions for operation before inspection, which means they issue the licenses for production first, and then conduct on-site inspection within 30 working days.

Third, the whole license application procedure can be done online. Market regulation administrations are harnessing "internet plus" technology to process applications for food production and operation licensing including acceptance, examinations, certification, inquiries and publicity. The administrations are promoting issuance of electronic licenses, which enables enterprises to apply for licensing online and improves efficiency.

Fourth, the licensing approval process can be accelerated. Since implementation of epidemic prevention and control measures, market regulation administrations at all levels have accelerated the approval process of food production and operation licensing to support food enterprises in increasing production, ensuring quality, stabilizing development and overcoming difficulties. This has created good conditions for enterprises to resume work and production.

For the next step, the SAMR will guide and support leading food enterprises to further enhance the effects of the "three guarantees" campaign. Great efforts are being made to expand the role of online platforms in facilitating contactless transactions and promote distribution modes that create a healthier food consumption environment. Since the number of people eating out and purchasing food outside has sharply decreased during the epidemic, offline food enterprises have been encouraged to develop online operations to help offset the loss of offline business. We are encouraging e-commerce platforms to launch more preferential measures to help consumers and merchants using them.

The SAMR will continue to work with all sectors of society to fully prepare for total recovery by promoting innovation and development of the food industry during and after the outbreak. Thank you.

Economic Daily and China Economic Net:

I have a question for Mr. Tang Jun. We understand that the "three guarantees" campaign involves stabilizing price, maintaining quality and ensuring supply. What progress has this campaign achieved so far? What role have participating enterprises played in the fight against the epidemic? Thank you.

Tang Jun:

The "three guarantees" campaign was officially launched on January 29, 2020. Its purpose is to mobilize social resources, especially enterprises and retailers, to maintain market order, ensure supply of epidemic prevention products and guarantee the basic needs of daily life. Since the launch, the action has attracted a robust response. As of February 24, 7,324 enterprises have participated in the action including producers and distributors, e-commerce platforms, shopping malls, supermarkets and franchised convenience stores. Most major enterprises in China are participating in the action, and its effects can be seen in more than 200,000 offline stores covering large, medium and small cities and rural areas. The action has achieved obvious effects.

Market regulation administrations are doing everything they can to stabilize prices. You've probably noticed reports of timely investigation and sanctioning of enterprises marking up the price of masks. As of February 24, more than 4,500 enterprises have been investigated and fined, and over 11,000 cases have been filed alleging price gouging of other medical protective equipment and important commodities for daily life. We work with national and local media to expose such behavior quickly and widely.

But many enterprises are taking active measures and utilizing e-commerce to control prices. E-commerce platforms participating in our action have removed more than 200,000 marked up masks from more than 36,000 stores. Enterprises committed to ensuring quality have been closely checking the quality of goods, strictly controlling purchasing channels, and quickly recalling defective products.

In terms of ensuring supply, many enterprises participating in the "three guarantees" campaign have actively responded to the call to resume work and production. About 98.9 percent of enterprises in the supermarket industry have resumed work and production, and more than 70 percent of enterprises in the food production sector have resumed work and production. E-commerce platforms have helped by strengthening information collection and transaction coordination, timely and accurately connecting supply and demand ends, and effectively guaranteeing supply.

We have seen a lot of promising results since the launch of the campaign. I would like to take this opportunity to ask even more enterprises to participate. The market regulation administrations will work with enterprises to maintain market order and ensure supply of basic commodities. Thank you.

China News Service:

We know that intellectual property pledge financing remains a big concern for small and medium-sized enterprises (SMEs). In these difficult times, what measures will the CNIPA take to support financing and renewal of loans to alleviate corporate financial difficulties and support resumption of work and production? Thank you.

He Zhimin:

Thank you for your question and for bringing attention to the financing difficulties SMEs have experienced. As we all know, many SMEs are indeed facing financing strains due to the epidemic. Solving their financing problems is an important task. Intellectual property pledge financing is an effective way to help SMEs, especially technology-based ones, alleviating capital shortage.

In accordance with decisions and arrangements of the CPC Central Committee and the State Council, CNIPA has actively promoted work on intellectual property pledge financing. In 2019, the total amount of pledge financing of patents and trademarks reached 151.5 billion yuan (US$21.6 billion), which helped nearly 10,000 enterprises solve the problem of capital shortage. After the COVID-19 outbreak, CNIPA studied and implemented the guidelines of General Secretary Xi Jinping and decisions and arrangements of the CPC Central Committee and State Council through a series of concrete measures. These measures include facilitating services on intellectual property-related business, relaxing deadlines and restoring rights, promoting intellectual property pledge financing, providing services on patent information and optimizing window service.

Regarding support for enterprises' intellectual property pledge financing, we are currently focusing on three areas:

First, we have established a green channel for pledge registration. According to the needs of enterprises and banks, we respond immediately and accelerate processing with an aim to finish online registration within one working day. Enterprises producing emergency supplies for epidemic prevention and control can complete procedures instantaneously. We will never allow the registration process to slow down loans to be used to produce supplies for epidemic prevention and control.

Second, we have organized local administrations to investigate pledge demands and available projects. When we understand demands for patent and trademark pledges related to epidemic prevention and control, as well as the repayment abilities of the enterprises with available projects, we can carry out door-to-door services and make better use of relevant policy tools to actively coordinate the bank's loan dispersal and renewal to those enterprises.

Third, we are increasing policy integration and fostering innovation. Where conditions permit, we encourage local administrations to integrate various support policies such as loan discounts, risk compensation, insurance and subsidies. We also encourage them to innovate methods of the internet and new media project aligning and of policy publicity, and to bring IPR's role in increasing credit and loans to enterprises into full play, thus supporting enterprises' resumption of work and production.

We are happy to find that some local administrations have taken strong measures to promote intellectual property pledge financing. Their efforts are winning great acclaim from relevant enterprises and the whole society. For example, Guangdong Provincial Intellectual Property Administration issued a notice demanding authorities enhance intellectual property pledge financing work to help enterprises to overcome current difficulties. Accordingly, Dongguan City of Guangdong assumed a lead role in support of enterprises. It loaned out 15 million yuan (US$2.13 million) to a medical enterprise with three utility model patents as collateral, greatly relieving its operational pressure and expanding its production capacity. The Intellectual Property Office of Jiangsu Province also has boosted intellectual property pledge financing work. They launched a special program which allowed 37 enterprises to receive pledge loans of 114 million yuan (US$16.25 million) since the epidemic outbreak. There are also many other examples, but I will not list them one by one.

Next, CNIPA will strengthen coordination with local authorities to actively promote useful experience and effective practices. We will fully support qualified enterprises in need of quick financing and contribute to helping them resume and expand production. Thank you.

China Review News Agency (Hong Kong)：

You just mentioned that the NMPA approved a group of drugs and medical devices for epidemic prevention and control within a short period of time due to the pressing need. How are you sure of the quality of these medicines and medical devices? What measures has the NMPA adopted to strengthen management of medicine and medicinal equipment used for epidemic prevention and control? Thank you.

Yan Jiangying:

This is a very good and important question. Everyone knows that drugs and medical devices are special commodities. We need to double and triple check them for quality and safety. First, we need to check their quality and safety before they go into market. Second, we need to check their quality and safety after they're already in the market. We have launched an emergency approval process. Before they go to market, we firmly adhere to the principle of "safety first, evidence of efficacy, quality assurance and unconventional review." Based on this guiding principle, we uphold the premise of safety and effectiveness, and accelerate review and approval, which is a key procedure before they go to market.

While speeding up review and approval, we are tightening supervision after medicines and medical devices for epidemic prevention and control go to market. NMPA has strengthened supervision especially on emergency medicines and medical devices, as well as drugs used in treatments suggested by the National Health Commission. We have focused our work in the following ways:

First, we strictly enforce a bottom line for quality and safety, and strictly enforce the supervisory responsibilities of related departments in overseeing enterprises fulfilling their responsibilities. We have strengthened supervision and inspection of drugs and medical devices for epidemic prevention and control, especially emergency products which have enjoyed quick approvals. Additionally, we are increasing checks and sampling inspections while strengthening pharmacovigilance. We require manufacturers to organize production in strict accordance with production quality management standards. Released products are strictly controlled. At the same time, we supervise enterprises in strengthening complete quality management including purchasing channels, purchase and sales records, storage and transportation conditions. We have stationed inspectors in pharmaceutical and medical device manufacturing factories and tasked them with overseeing strict quality management to ensure the quality, safety and effectiveness of products.

Second, we have dispatched inspection teams to strengthen supervision of key products for epidemic prevention and control. We have conducted closed cooperation with industrial and information departments and market regulation administrations to reinforce supervision and inspection of designated enterprises, in order to identify problems and solve problems quickly. So far, NMPA has sent 13 working teams in two waves to increase supervision and inspection of drugs and medical devices to be used in epidemic prevention and control alongside local medical products administrations. We are urging enterprises to practice strict self-discipline and ensure product quality and safety.

Third, we are also cracking down on crimes. With the help from authorities in public security, health and market regulation, we have accelerated investigating and prosecution of illegal and criminal acts related to drugs and medical devices in accordance with the law. Criminals will face heavier punishments in accordance with the law. We will do everything we can to ensure medicine and medical device safety during this period.

Next, we will continue to strengthen supervision of the quality and safety of medicine and medical devices while continuing emergency reviews and approval work. Thank you.

Hu Kaihong:

The press conference is hereby concluded. Thanks to the four speakers, and thanks to you all.

Translated and edited by Yin Xing, Zhao Yue, Wang Shuya, Zhou Xin, Xu Shuyuan and Scott Huntsman. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Cong Liang, a member of the Leading Party Members' Group of the National Development and Reform Commission (NDRC) and secretary general of NDRC

Tian Yulong, a member of the Leading Party Members' Group of the Ministry of Industry and Information Technology (MIIT) and chief engineer of MIIT 

Ou Wenhan, assistant minister of the Ministry of Finance (MOF) and a member of the Leading Party Members' Group of MOF

You Jun, vice minister of the Ministry of Human Resources and Social Security (MOHRSS) and a member of the Leading Party Members' Group of MOHRSS

Ren Hongbin, assistant minister of the Ministry of Commerce (MOC) and a member of the Leading Party Members' Group of MOC

Chen Yulu, a member of the Party Committee of People's Bank of China (PBOC) and deputy governor of PBOC 

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

Feb. 24, 2020

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference. General Secretary Xi Jinping and the Central Committee of the Communist Party of China (CPC) have recently issued instructions on the work to coordinate the prevention and control of the COVID-19 epidemic with economic and social development. Today, we have invited Mr. Cong Liang, a member of the Leading Party Members' Group of the National Development and Reform Commission (NDRC) and secretary general of NDRC; Mr. Tian Yulong, a member of the Leading Party Members' Group of the Ministry of Industry and Information Technology (MIIT) and chief engineer of MIIT; Mr. Ou Wenhan, assistant minister of the Ministry of Finance (MOF) and a member of the Leading Party Members' Group of MOF; Mr. You Jun, vice minister of the Ministry of Human Resources and Social Security (MOHRSS) and a member of the Leading Party Members' Group of MOHRSS; Mr. Ren Hongbin, assistant minister of the Ministry of Commerce (MOC) and a member of the Leading Party Members' Group of MOC and Mr. Chen Yulu, a member of the Party Committee of People's Bank of China (PBOC) and deputy governor of PBOC. They will introduce the measures being taken to implement the instructions given by General Secretary Xi Jinping and the CPC Central Committee. They will also answer your questions. First, I will give the floor to Mr. Cong.

Cong Liang:

Ladies and gentlemen, friends from the media, good morning. The impact of the COVID-19 epidemic on China's economic and social development is currently a major concern for all sectors of society. The CPC Central Committee and the State Council have attached great importance to the work on promoting economic and social development amid the outbreak. General Secretary Xi Jinping leads and arranges the related work personally. He has called many meetings, heard reports and delivered important speeches. General Secretary Xi has emphasized that the work of coordinating epidemic prevention and control with economic and social development is of vital importance. He has demanded great efforts to achieve this year's economic and social development goals and tasks, and secure finishing the building of a moderately prosperous society in all respects, meeting the goal of eliminating poverty and completing the 13th Five-Year Plan. Premier Li Keqiang has chaired State Council executive meetings, stressing coordination in advancing economic and social development along with unremitting epidemic control efforts so as to ensure normal running of society and the economy. The Joint Prevention and Control Mechanism of the State Council has also held many meetings to discuss and make arrangements for relevant work.

While continuing anti-epidemic efforts, the NDRC, in cooperation with other departments, is offering guidance for local authorities to establish economic and social order based on the epidemic situation, promote orderly resumption of work and production according to the categories of the various enterprises involved, and ensure key supplies are provided on time. The latest statistics show that the resumption of work and production is well underway, with large enterprises being ahead of small and medium-sized ones in this regard. Compared to downstream industries and labor-intensive enterprises, upstream participants and capital and technology-intensive companies report faster resumption of production. More and more industrial enterprises above designated size are gradually resuming production. More than 90% of such enterprises in Zhejiang province, for example, have restarted production, and the figure is above 70% in Jiangsu, Shandong, Fujian, Liaoning, Guangdong and Jiangxi provinces. In terms of key industries, 67.4% of steelmaking enterprises have restored production, and those in non-ferrous metal business have reached 86.3%. In particular, enterprises in key sectors that directly concern national stability and our people's wellbeing are accelerating their drive for resumption of normal production, and some are already operating in high gear around the clock. The production capability of face masks has been expanded to 110% of the normal level. More than 70% of the grain processing capacity for emergency response has been restored. A total of 76% of firms in the coal sector have restored production. Rail loadings have reached around 95% of the normal level before the Spring Festival holiday. Civil aviation, ports and waterway network are also operating as normal.

The epidemic did inflict a big impact on China's economic performance, undermining consumption and hitting the services sector during the Spring Festival holiday, along with delaying the resumption of work and production thereafter. Some enterprises, especially small and medium-sized ones, encountered great difficulties in their production and operation. In response, local authorities and various central departments have acted based on the decisions made by the CPC Central Committee and the State Council, rolling out strong and effective measures to mitigate the impact. These measures include cutting the energy consumption costs of enterprises; promoting special re-lending programs totaling 300 billion yuan (about $43 billion) to provide low-interest loans to key manufacturers of supplies needed for epidemic control; provisionally reducing or waiving employers' social insurance and medical insurance contributions and deferring their payments to the housing provident fund; as well as reducing value-added tax and income tax for some industries and individuals.

Here I must stress that the short-term impact brought about by COVID-19 on our economy and society is controllable and will not change the fundamentals of China's long-term economic development. With gradual progress made in epidemic prevention and control work, and effective policies to offset repercussions, we have the confidence, ability, and conditions to minimize the impact of the epidemic and sustain steady economic and social development.

Next, in accordance with the decisions and deployments made by the Party Central Committee and the State Council, the National Development and Reform Commission will work with other relevant departments to strengthen the prevention and control of the epidemic, as well as to promote the orderly resumption of production based on different areas and epidemic situations. To safeguard the orderly flow of people, materials, and capital, we need to focus on the following tasks: 

First, we will step up macro policy adjustments. We will fully implement all the deployments made at the Central Economic Work Conference, pursuing a more proactive fiscal policy as well as a prudent monetary policy that retained an appropriate degree of flexibility. We will also consider adopting targeted measures to cut taxes and fees to help micro, small, and medium enterprises pull through the crisis. We will actively expand domestic demands, spur consumption recovery, and unleash potential. We will also give full play to the key role of effective investment and provide stronger support to major sectors, including labor, land use, and funding, to accelerate the construction of ongoing and newly started projects. We will coordinate all work to maintain stability in six key areas, namely, employment, finance, foreign trade, foreign investment, domestic investment, and expectation. 

Second, we will work to ensure that emergency policies and measures that have already been issued are fully implemented. We will step up support and assistance to key industries, as well as small and medium enterprises, by fully implementing policies on reducing taxes and fees, providing financial services, offering rent cuts and exemptions, and providing subsidies to enterprises that maintain stable employee numbers. We will coordinate all work to ensure stable production and supply of daily necessities to meet people's basic needs. We will also ensure timely agriculture work in the spring, resolutely accomplish the task of alleviating poverty, step up efforts to keep employment stable with all-round measures, and strive to meet the needs of daily protective supplies for enterprises that have already resumed production or prepare to do so. 

Third, we will work hard to address inadequacies in our work and shore up points of weakness. The prevention and control of the epidemic have exposed some inadequacies in our work, which should be improved with more significant and more precise efforts after we draw on the experience and lessons. All these will provide new opportunities for us to boost domestic demand and promote economic growth, help create and develop new areas of growth, and, more importantly, lay a sound foundation for China's economic and social progress. Meanwhile, we will continue to monitor the economic performance closely, as well as to formulate and adopt relevant policies, measures, and contingency plans based on the changing situation to ensure a stable economic and social performance.  

CNR:

Premier Li Keqiang recently required related enterprises to race against the clock and work hard to expand production capacity while inspecting the production of face masks in Beijing. During his visit, the premier expressed his wish that the daily production capacity of masks nationwide should exceed 100 million at an early date. What measures will you take to constantly expand production capacity and ensure supply? How is the resumption of production going with producers of key medical supplies? Thank you.

Tian Yulong:

Thank you for your question. Since the outbreak of the epidemic, both the Party Central Committee and the State Council have placed great importance on the provision of medical supplies. General Secretary Xi Jinping has given important instructions on various occasions. As the leading unit of the medical supplies group of the Joint Prevention and Control Mechanism of the State Council, the Ministry of Industry and Information Technology has worked with other member units to adopt various measures and hold mobilization meetings to prioritize and accelerate the resumption of the production of medical supplies. We have mobilized enterprises to resume, expand or switch production to medical protective supplies, disinfection and sterilization supplies, test reagents, medicines, and medical equipment, as well as raw materials needed for manufacturing these products. In particular, we have held meetings to mobilize and make deployments for enterprises to expand or switch production to medical protective suits. 

The joint efforts of all sectors from across society, various government departments and localities, have ensured that key medical supply companies are resuming work and production at a high rate. The output rate of these companies has reached and, in some cases, exceeded 100%, as some companies have expanded production. The capacity of key medical supplies has increased and now frontline medical staff in Hubei are guaranteed adequate supplies. The output of medical protective clothing has risen from less than 10,000 pieces per day on Jan. 28 to more than 200,000. The number of producers has already increased from less than 20 to more than 50 producing at maximum capacity, with nearly a hundred more applying for new licenses to start production. Over two million pieces of protective clothing have been sent to Hubei so far, which has guaranteed supplies on the frontline, Beijing and other parts of the country where the epidemic has been relatively severe. Regarding the masks, Mr. Cong Liang will talk about it for a while, which is also good in general. 

We have also guaranteed the production and supply of isolation clothing, and offered Wuhan over 700,000 pieces. 40,000 medical goggles and masks are now being produced per day, which has effectively met demand on the frontline. The work resumption rate of sanitizer and disinfectant companies currently stands at over 80%. The production capacity and output of 84 products of disinfectant, no-rinse hand sanitizer and medical alcohol is large enough to meet the needs of Hubei and even the whole country. So far, more than 1,500 metric tons of disinfectants and 115 metric tons of hand sanitizers have been transported to Hubei. At the same time, we are organizing e-commerce platforms and wholesale pharmaceutical companies to cooperate and provide sanitizers, online and in-store, as soon as possible, so we can meet the needs of the general public as work resumes.

Meanwhile, ten categories of medical equipment are in urgent need on the frontline, including negative pressure ambulances, ventilators, electrocardiogram (ECG) monitors, and various thermometers. But we are making sure the frontline is getting what it needs. For example, more than 10,000 ventilators and monitors, and 140,000 hand-held thermometers have arrived in Wuhan and played an important role in medical treatment.

Of course, the current epidemic situation is relatively severe, and controlling it is still at a critical stage. I should add that supplying medical materials is still relatively arduous, and key medical supply companies still require continuous, steady and high-quality support. Therefore, the Ministry of Industry and Information Technology (MIIT) will cooperate with other government departments in epidemic prevention and control; work and production resumption; coordinating upstream and downstream industrial chains; prioritizing the urgent needs of the frontline; and meeting the needs of Beijing and the country to win the battle against the epidemic. Thank you.

Cong Liang:

Thank you for your question. I would like to add something about face masks. When inspecting the production of masks, Premier Li emphasized that masks are a weapon for medical personnel to fight the epidemic, a shield to protect the health of the people, and a guarantee for the orderly resumption of work and production of enterprises. In accordance with the arrangements of the CPC Central Committee and the State Council, the National Development and Reform Commission (NDRC) will work with relevant government departments to ensure the production and supply of masks.

Since Feb. 1, we have helped mask manufacturers to solve problems in terms of labor, capital, and raw materials, and made every effort to ensure the supply of masks. It can be roughly divided into two stages: the first stage was mainly to respond to the epidemic and to protect front-line medical staff, so we focused on expanding the production of medical N95 masks. As a result, the N95 daily output on Feb. 22 has reached 919,000, which is 8.6 times that of Feb. 1. We have transferred 3.3 million masks from provinces producing N95 masks to Wuhan, Beijing and other localities without N95 production capacity since February, among which 2.68 million were transferred to Wuhan. The recent daily transfer remains more than 150,000, and more than 300,000 N95 masks are provided across Wuhan every day, which can more than meet the needs of the 60,000 plus frontline medical staff.

For recent days, the resumption of work and production has seen an explosive growth in demand of face masks. We are now turning focus to ensuring the supply of ordinary medical and non-medical masks. The work will be carried out in the following three aspects:

First, production will be resumed to the fullest extent to meet demand. We will continue to ensure an overall resumption of face-mask production. In doing so, we prioritize supply of the labor force, funds, logistic services and key raw materials to meet the demand of the manufacturers concerned and stimulate them to work at full steam under the premise of epidemic prevention and safe and quality-centered production.

Second, the growth of productivity and the expansion of production capacities will be fully supported. We have launched a special campaign to expand the production capacity of face-masks for medical use since the beginning of this month. Enterprises were organized into three groups to increase productivity, expand capacity and switch production by means of technological improvement, so that greater supply could be secured. In the next phase, we will continue to draw up policies to support the endeavor of epidemic prevention and control, if necessary.

Third, concerted efforts will be made to ensure the smooth operation of the industrial chain. Viewing the entire industry, we will help accelerate the production of key raw materials and facilities, including melt-blown non-woven fabric, mask making machines and parts, to satisfy the urgent needs of face-mask manufacturers and raise industrial efficiency.

So far, new mask production lines have been launched in 30 provinces, autonomous regions and municipalities, with Tibet excluded, and there will be more on the way. By Feb. 22, the daily output of face masks had reached 54.77 million, growing 2.8 times the figure on Feb. 1. A total of 570 million face masks have been produced over the past 20 days.

We believe, with our concerted efforts, production will keep growing rapidly to better meet the demand as work and production resume amid the ongoing fight against the epidemic. Thank you.

Nihon Keizai Shimbun:

China set its economic growth target at the Central Economic Work Conference held last December. Will there be any change of the target due to the epidemic? Thank you.

Cong Liang:

Thank you for your question. This year marks the end of the 13th Five-Year Plan and China is set to achieve its goal of completing the building a moderately prosperous society in all respects. Based on that, China set this year's economic and social development goals and mapped out major tasks at the Central Economic Work Conference held last year, including: implementing the new development philosophy, stepping up efforts in the "three tough battles" against major risks, poverty and pollution, improving people's livelihood, creating better use of fiscal and monetary policies, boosting high-quality development and deepening the reform of the economic system. Despite the impact of the COVID-19 outbreak, China still has plenty of ways to complete the tasks and reach the goals of economic and social development drawn up at the conference. 

First, the epidemic won't change the long-term sound development trend of the national economy. The impact of the epidemic on the world's second largest economy is temporary and short lived. Consumption, supposed to release its potential after the epidemic, has merely been postponed, not lost. For instance, growth of retail sales dived to 4.3% in May 2003, when the Severe Acute Respiratory Syndrome (SARS) affected the country. However, two months later, the growth jumped to 9.8%. To take another example, industries like online shopping, online education, remote office work, online entertainment and smart manufacturing, have bucked the negative impact of the current epidemic to attain substantial growth. Those altogether reflect the great resilience and potential of China's economy.

Second, emergency policies and measures have been adopted to counteract the impact of the epidemic. In accordance with the decisions of the CPC Central Committee and the State Council, authorities in different regions and at different levels have mapped out a series of measures to safeguard the stable performance of national economy, namely, stabilizing employment, the financial sector, foreign trade, domestic and foreign investment, and market expectations. In recent days, we have rolled out more effective policies to offset the impact of the epidemic, such as promoting the orderly resumption of work and production, cutting taxes and fees, expanding financial services, reducing or exempting rents, and providing job subsidies. We believe that those policies and measures will alleviate the economic impact, especially the difficulties that small and medium-sized enterprises are facing.

Third, normal order of production and operation is being restored. Under the premise of containing the epidemic, we adhere to the principles of scientific prevention, adopting targeted measures based on different levels of risks from low to high, and taking a differentiated approach to promote resumption of work and production. We have made efforts to address the congestion problem. For areas of low risk, traffic restrictions will be lifted completely. We will promote the resumption of work and production in the upstream and downstream sectors of the industrial chain in a coordinated manner. Simultaneous resumption of operation will be realized in key sectors such as medical supplies, daily necessities, and logistics, so as to ensure normal operation of the industrial chain. We will fulfill the requirement of "implementing policies before companies run into any difficulties." Difficulties facing businesses will be addressed, especially those in key regions, including labor, capital, and raw material supplies. We will step up efforts to support key industries and SMEs. Under the premise of preventing and controlling the epidemic, we will make sure enterprises can still operate, and the economy will continue to run smoothly. 

Fourth, we have enough development potential and policy reserves. As I mentioned, weaknesses were exposed in many areas during this outbreak, for example, social governance, public health facilities, emergency response and material reserve. But these are also the potential for future investment and space for future development. We will strive to make up for any shortcomings and improve the quality and efficiency of economic development. Meanwhile, we will step up economic monitoring, forecasting, early warning, and policy research reserves. Relevant policies will be introduced at appropriate time. Macro-control efforts will be strengthened. In these ways, we can maintain a stable, healthy, and sustainable economic and social development.

I'm confident that, as long as we unite, implement the arrangements of the Central Economic Work Conference, expand domestic effective demand, and introduce the right policy, we can attain this year's economic and social development targets. Thank you.

Economic Daily:

Now, we are paying more attention to stable economic development. What effective measures have been put in place by the financial departments to stabilize the economy? What further steps will be taken in implementing a proactive fiscal policy? Thank you.

Ou Wenhan:

Thank you for your question. The COVID-19 is not only threatening people's lives and health, but also impacting the economy. The financial and fiscal department are earnestly implementing the decisions made by the CPC Central Committee and the State Council. While ensuring capital and material supplies, we seek to leverage the role of fiscal policies in a targeted manner to counter economic fallout from the coronavirus outbreak.

First, we have provided preferential tax policies for hard-hit industries, including the transportation, catering, accommodation and tourism sectors. We have adjusted the corporate income tax policy to provide timely support for industries closely related to people's livelihood, such as public transportation and express delivery. Measures for exempting value-added tax have been introduced to reduce the burden in a targeted manner and help the enterprises overcome difficulties.

Second, we have introduced general fee reduction policies. Working with relevant departments, we have introduced policies such as a phased reduction of social insurance as well as medical insurance, and deferring payment of housing provident funds, which benefit a large number of people. On top of last year's policy of cutting social insurance rate, these policies will help offset the impact of the epidemic on business.

Third, we have intensified support to help enterprises maintain steady employment. We have been working with the Ministry of Human Resources and Social Security and other departments to support the business to keep more people on their payroll, by returning the unemployment insurance premium and providing vocational training subsidies. At the same time, for SMEs and individuals affected by the epidemic, we have introduced special policies to reduce their financing guarantee fees in order to address their difficulties in financing. These policy measures will play an important role in building up social expectations and boosting corporate confidence. With resumption of work and production, policies will further take effect.

Next, we will continue to earnestly implement General Secretary Xi Jinping's important instructions at the meeting to advance the work on coordinating the prevention and control of the COVID-19 and economic and social development. We will strengthen the counter-cyclical adjustment of macroeconomic policies. Fiscal policies will be more proactive to ensure that the decisions of the CPC Central Committee and the State Council are put in place.

On the one hand, we will promote the implementation of relevant policies that have already been introduced, such as fiscally subsidized interest rates, fees reduction on a large scale, and deferring tax payments, so as to ensure these polices can produce desirable results as soon as possible. On the other hand, we will take more proactive approaches and intensify policy efforts to ensure the economy can continue to perform within an appropriate range, and prevent the short-term impact from evolving into a long-term trend.

First, we will continue to study and introduce more targeted interim policies in cutting taxes and fees, focus on resumption of work and production in key industries, and help micro, small and medium-sized firms tide over any short-term difficulties. Second, we will utilize the available funds of some departments of the central government for the epidemic prevention and control work, with a focus on ensuring funding for priority areas such as poverty alleviation and completing the building of a moderately prosperous society in all respects. Third, we will increase transfer payments. We intend to allocate more to severely affected areas to guarantee salary payments, business operations and protection of people's basic livelihood. Fourth, we will expand the issuance of special bonds by local governments. In line with the principle of "capital follows projects," we will guide them to work for establishment of project reserves and preliminary preparations, so as to make effective investment as soon as possible.

Through systematic planning, targeted policies and pragmatic implementation, we will be able to prevent and control the epidemic while advancing economic and social development. As long as we are able to unleash the great potential and powerful driving forces of development, we will surely achieve this year's economic and social development targets, and secure alleviating poverty and completing the building of a moderately prosperous society in all respects. Thank you.

CCTV:

My question is to Mr. You Jun. We have noticed that the outbreak of the epidemic has affected employment in some industries and in regard to medium- and small-sized enterprises. How will it impact employment as a whole? What kind of measures will you take to deal with the impact? Thank you.

You Jun:

Thanks for your concern. Employment has always been a matter of great concern to everyone in society. Generally speaking, the current employment situation in China as a whole remains stable. Last year, 13.52 million new urban jobs were created, meaning the number topped 13 million for the seventh straight year. At the end of last year, the national surveyed urban unemployment rate was 5.2%, lower than expected.

According to the data of January, the main employment index was running within an appropriate range. However, the outbreak of the epidemic has inevitably brought great impact to our economy, and this will surely affect employment. Employers delayed the resumption of work and production, so naturally employees could not return to work as planned. Service sector industries, like tourism and catering, and medium- and small-sized enterprises have been encountering increased difficulties. Due to faltering demand of market recruitment, college graduates, migrant workers and other key groups have to face tougher situation. Therefore, the structural contradiction between the difficulties of employers and employees became more prominent, which really poses some challenges for employment this year.

However, we should also see that the impact of the epidemic is temporary and generally manageable, and it will certainly not change the fundamentals of China's long-term sound economic growth, as well as the general stable employment. With large scale and wide market space, our economy features great resilience and potential. In recent years, the economy has played an increasingly important role in boosting employment, which provided steady support for keeping stable employment. In particular, the CPC Central Committee with Comrade Xi Jinping at the core attaches great importance to employment, and takes it as the first priority in maintaining stability in the six key areas, namely employment, finance, foreign trade, foreign investment, domestic investment, and expectation. Greater efforts have been exerted to implement employment priority policies, and a series of measures taken to keep stable employment amid the outbreak of the epidemic. Yesterday, General Secretary Xi Jinping again urged unremitting efforts to keep employment stable. Therefore, we have confidence and capability to maintain overall stability of the employment this year. At present, we will focus on the following aspects:

You Jun:

First, priority should be given to expanding employment in overall economic and social development. Policies for every sector should focus on this aspect. We should step up collaboration and linkages between economic policies (fiscal and financial) and employment policies, and support and develop the service industry, micro-, small- and medium-sized businesses, and labor-intensive industries that are able to create more job opportunities. We should also encourage entrepreneurship and innovation, develop new forms of employment and prop up flexible employment with multiple channels.

Second, it is vital to ensure employment stability. Policies should be adjusted along with changes in the employment environment. Equal emphasis should be laid upon alleviating burdens, stabilizing and expanding employment. We should implement the policies made for reducing or exempting social insurance charges in a phased way, offering refund of unemployment insurances to enterprises that limit their layoffs to a designated ratio, and offering employment subsidies, to help enterprises, especially micro-, small- and medium-sized ones, overcome their difficulties and keep employment stable.

Third, we will ensure employment for key groups of people. We attach great emphasis to college graduate employment by coordinating graduation, employment exams and recruitment, initiating online recruitment activities, setting up cloud classes on career guidance, and advising employers to postpone interviews, physical examination, contract signing and the enrollment schedule, so as to help college graduates obtain jobs in a smooth way. We also help migrant workers return to work, urging those in the low-risk epidemic areas to return to their positions as soon as possible and offering "point-to-point" direct transportation for them. We implement a 24-hour labor dispatching guaranteeing system for key enterprises. We will also realize a precise linkage between labor output and input units, give priority to assisting the poor to resume work in an orderly way, and support poverty alleviation flagship enterprises and workshops to resume operation as soon as possible so as to absorb local labors. We will carry out measures suited to local conditions and people, make targeted efforts, and guarantee key employment groups can find jobs. 

Fourth, more steps will be taken to promote employment. On the one hand, we will enhance employment services to promote efficient linkage between supply and demand through online platforms offering job position information dynamically. On the other hand, we will launch activities to improve people's professional skills, establish free online training platforms, provide timely training courses for occupations in short supply and sharpen laborers' employment abilities.

Fifth, we will guarantee the bottom line of the people's wellbeing. We will offer employment aid to people experiencing difficulty finding a job due to the epidemic, offer public welfare positions for those that cannot find jobs in the market, accelerate online unemployment registration, speed up online application of unemployment insurance benefits, and ensure that unemployed people enjoy the insurances as they are entitled to. Areas hard hit by the epidemic should create temporary public welfare positions and grant unemployment benefits so as to guarantee the bottom line of the people's wellbeing.

Pivotal to the people's living, employment is concerned with one's personal development, happiness of families, social stability and long-term stability of a country. We will follow the decisions and plans made by the CPC Central Committee and the State Council to coordinate epidemic control and economic and social development, enhance employment stability measures in an all-round way, make sure that every policy is considerate and effective, and endeavor to assist the people in securing their jobs. 

Singapore Lianhe Zaobao:

Will China issue strong stimulus monetary or financial policy measures to alleviate the epidemic's impact on the economy? Thank you.

Chen Yulu:

Thank you for your question. Monetary and financial policies are an important tool to address emergencies and restore economic growth. Since the outbreak of the epidemic, in line with the decisions and plans of the CPC Central Committee and the State Council, the People's Bank of China has pursued a prudent monetary policy that is flexible and appropriate, intensified counter-cyclical adjustments, and released a string of measures. First, we have provided enhanced liquidity to guarantee the abundance of liquidity of the banking system and money market and stabilize the market sentiment in time. Second, we have established a 300-billion-yuan low-cost special re-lending to provide targeted support for key enterprises combating the epidemic. Third, the People's Bank of China and five other departments have jointly issued 30 measures on the control and prevention of the epidemic so as to offer financial security for containing the epidemic and restoring production. So far the measures have all taken effect.

Next, the People's Bank of China (PBOC) will firmly implement the spirit invoked by the important speeches of General Secretary Xi Jinping and promote a prudent monetary policy that is more flexible and appropriate. We will strengthen the following three major categories of measures: 

First, we will continue to maintain reasonably sufficient liquidity, and make good use of the guiding role of the policy interest rate to ensure the overall market interest rate continues to fall, this lowering enterprises' financing costs. 

Second, we will make better use of structural monetary policy tools. On the one hand, we will continue to make good use of the 300 billion yuan ($42.97 billion) of special re-lending funds and offer credit support to enterprises in need as soon as possible. Presently, nearly 1,000 enterprises have obtained such special loans. Next, we will continue to implement the policy with targeted measures. On the other hand, we will make good use of existing inclusive monetary policy tools, such as relending and rediscount for farmers and small businesses. We will step up our policy support in this regard. We will shortly adopt an annualized dynamic adjustment to the targeted reserve requirement ratio (RRR) for inclusive financing, and more qualified banks will enjoy the preferential policy. Third, we will bring into full play the role of policy-based financing. In the previous stage, the three policy banks actively took many financial measures to support anti-epidemic efforts, and these measures have worked well. In the future, the PBOC will give more support to the three policy banks to help them better play their role: It will support China Development Bank, the Export-Import Bank of China and the Agricultural Development Bank of China to intensify financing support to businesses in manufacturing, foreign trade, and the whole industrial chain of hog production, respectively. 

We are formulating relevant plans for implementation of these measures and will roll them out at the earliest possible moment. Presently, China's monetary policy space and policy tools remain sufficient, so we are confident and capable of winning the battle against this epidemic, and supporting the orderly resumption of work and production for quick recovery of economic growth. Thank you. 

Ou Wenhan:

As for the fiscal policies, I touched upon them when answering questions. They mainly focus on two aspects: First, we will fully implement various policy measures that have already been introduced; second, we will make our proactive fiscal policy more active, and stage some new measures in the light of the trend of our economic development. Thank you.

Bloomberg: 

I have a question about your support measures for small and medium-sized enterprises. What actually will you be doing to help small companies in China deal with both the supply shocks that they can't get what they need, and demand shocks that they can't serve their customers? And the deputy governor of the PBOC, Fan Yifei, said recently that the tolerance for non-performing loans, especially from small companies, will be increased. How high will you increase the tolerance for those kinds of loans? Thank you. 

Tian Yulong:

Thank you for your questions.

The CPC Central Committee and the State Council attach great importance to the sound development of small and medium-sized enterprises, and have required that assistance be increased to key industries and SMEs. Proactive policies should be formulated in advance to prevent enterprises from getting stuck in difficulties and should be fully implemented with targeted measures. As we know, securing the stable development of SMEs is to secure stable employment, so it is very important to mitigate the epidemic's impact on SMEs.

Since the outbreak of the virus, all member units of the State Council leading group for promoting the development of SMEs have undertaken strong coordination and cooperation to produce many supportive policies and measures. Especially on Feb. 9, the Ministry of Industry and Information Technology issued a notice on the work programs to help SMEs resume operations, and overcome difficulties caused by COVID-19 epidemic. The notice specifies that all-out efforts will be exerted to help SMEs resume production in an orderly way, and strengthen support to them with 20 specific measures in six aspects, including fiscal support, financial support, innovation support, public services and overall coordination. The Ministry of Finance and the PBOC have just mentioned the relevant measures. 

According to the current monitoring, small and medium-sized enterprises (SMEs) have overcome their difficulties and resume operations one after another. In particular, with strong support of local governments and their departments at all levels, the overall work resumption rate has gradually rebounded. At present, monitoring shows the operating rate is close to 30%. At present, SMEs mainly face "five difficulties" when resuming work and production. Just now several fellow leaders also talked about the difficulties. First, it is simply difficult to get work started again. In order to ensure the safety requirements of epidemic prevention and control, local governments have been asking for a large number of approval and evidentiary documents, and so on, so there are still some checkpoints to pass through. Second, the difficulty of employment has not been completely resolved. Due to the impact of the epidemic, the flow of people is not that smooth and is still blocked to a certain degree. Third, industrial chain support is relatively difficult, as logistic operations are far from smooth, raw materials cannot come in, and the finished products cannot be delivered. So, the upstream and downstream links of the industrial chain have not achieved simultaneous resumption, which has a great impact on the normal operation of enterprises. Fourth, funding support is difficult. The funding pressure on SMEs is relatively big, and rigid costs and expenditures are relatively large. However, the subsequent implementation of fiscal and financial policies will hopefully ease the pressure. Fifth, order delivery is difficult. SMEs now have orders in hand, but there is no way to carry out production in a timely manner, and they will have to bear the risk of default.

Generally speaking, there are still many challenges for the steady recovery. In the follow-up progress, we will resolutely follow the spirit of General Secretary Xi Jinping's important instructions. Especially, we will implement General Secretary Xi Jinping's eight-point demand for work and production resumption. which he raised at a meeting yesterday to advance coordination of prevention and control of the COVID-19 and economic and social development. The member departments of the State Council leading group for promoting the development of SMEs will work together to implement various policies to assist small, medium and micro-sized enterprises. Here are five specific measures:

First, we will promote the precise resumption of normal operations by region and classification as soon as possible. This is of great significance to SMEs, because they are scattered across the country, and the geospatial range is relatively wide. We will further increase the work resumption rate of micro, small and medium-sized enterprises, and coordinate with local governments at all levels to vigorously promote the simultaneous work resumption of upstream and downstream SMEs along the industrial chain. Raw materials and auxiliary materials are the factors that will affect the product, so simultaneous resumption of all operations is a very important link now.

Second, we will implement the preferential policies of the finance sector. We will ensure the benefits for SMMEs can be realized, including fees exemption of pensions, unemployment, work injury and insurance premiums, as well as realizing exemption from highway vehicle tolls, and deferred payment of social insurance, etc., in order to alleviate the financial pressure on SMMEs.

Third, all departments will work together to effectively coordinate and solve the practical difficulties encountered by SMMEs when they resume work and production. In particular, for guaranteeing various production factors, the supply of raw materials, the supply guarantee in regard to preventive and control materials, and the practical problems that occur in logistics and transportation. These things should be addressed under the overall joint prevention and control mechanism of the epidemic. All departments should work together in this regard, while ensuring and increasing support for the guaranteed provision of medical supplies, they should adopt this mechanism to support the work and production resumption of SMMEs.

Fourth, we will give full play to the leading roles of central enterprises, state-owned enterprises and major enterprises in the industrial chain, which can help SMMEs in resuming production as soon as possible, and then to achieve output goals, to transform and upgrade, so as to improve their market competitiveness, and make sure their products can sell. The orders can be driven by major enterprises, in this way, the recovery of SMMEs can be accelerated.

Finally, we have to guide and help the SMMEs to prevent and control the epidemic during their resumption of work and production, which is also quite difficult. The joint prevention and control mechanism of the State Council has issued guidelines on epidemic prevention measures for work and production resumption, in order to avoid recurrence of cluster infections. The purpose of these measures is to help SMMEs achieve the goals of reducing burden, stabilizing jobs and maintaining employment as soon as possible. We believe that, with the concerted efforts of various departments and local governments, and with the practical and precise implementation of various measures, SMMEs can speed up the orderly resumption of work and production. SMMEs can definitely overcome the difficulties and ride out the storms through the help of the central government and their own efforts. Thank you all.

Phoenix TV:

With regard to the foreign trade, how great an impact does the outbreak on imports and exports? What measures will be taken to reduce such impact? What will be done to stabilize foreign trade throughout the year? Thank you.

Ren Hongbin:

Thank you for your question. As one of the three driving forces of economic growth, foreign trade is highly valued by the CPC Central Committee and the State Council and is of wide concern. The impact of the coronavirus outbreak on foreign trade is currently temporary and short-term. China's foreign trade is highly competitive with strong resilience, especially shown in enterprises' innovative ideas and the ability to explore markets. Therefore, the long-term positive trend of the foreign trade will not change.

Since the outbreak, the Ministry of Commerce has resolutely implemented the policy decisions and plans of the CPC Central Committee and the State Council, guided the national business system to monitor the foreign trade operation so as to take targeted measures in helping enterprises. As we all know, foreign trade enterprises are facing several external factors including the difficulties in taking orders and fulfilling their contract obligations, poor international logistics and the increase of trade barriers in addition to the common problems facing domestic enterprises, both of which make the foreign trade situation even more complicated and severe.

In order to help enterprises resume work and production so as to guarantee their ability to accept orders, fulfill their obligations and maintain their market share, the Ministry of Commerce has introduced 20 policies aimed at coping with the outbreak to stabilize foreign trade and foreign investment and promote consumption, and also issued the Notice on Promoting Orderly Resumption of Work and Production in Business Enterprises on the Premise of Effectively Preventing the Epidemic. The Ministry of Finance, State Taxation Administration, the Financial and Tax Department, the People's Bank of China, the General Administration of Customs and China Export and Credit Insurance Cooperation have also developed various supportive policies. Meanwhile, a total of 16 local governments including the provinces of Guangdong, Zhejiang, Henan and Gansu have taken measures to help foreign trade enterprises to pull through. Foreign trade enterprises have taken the initiative to prevent the epidemic affecting their business and ensure early resumption of their operations. So far, foreign trade provinces and provincial city including Guangdong, Jiangsu, Beijing and Sichuan have seen a quick resumption of work. In Zhejiang province, 90% of businesses valued more than $10 million have resumed their operations. For instances, Yiwu city of Zhejiang province has met the targeted needs of transporting holidaying employees back to their base by using charter flights, trains and buses in order to achieve rapid resumption of work and production. With regard to financing difficulties, many local governments have introduced practical and effective policies. In Suzhou, for example, the import and export bank has been encouraged to offer bailout funding in an innovative way. As deputy-governor Chen mentioned, import and export banks have been supported by the central government to increase lending to help out foreign trade enterprises. The Shandong government has introduced timely policies and measures to encourage enterprises to participate in foreign exhibitions and explore international markets.

Next, by thoroughly implementing the guiding principle of the meeting of the Political Bureau of the CPC Central Committee and following the spirit of the important speeches made by General Secretary Xi Jinping at the Work Deployment Meeting on Promoting Prevention and Control of COVID-19 Outbreak and Socio-Economic Development, the Ministry of Commerce will do its best to stabilize the fundamentals of foreign trade while preventing and controlling the outbreak. The focus will be as follows:

First, we will further enrich our policy toolbox, with focus on promoting export tax rebates, trade financing, export credit insurance, and trade facilitation.

Second, we will further improve arrangements for the international market. We will implement different policies for key markets along the Belt and Road to facilitate trade.

Third, we will take more targeted measures to support enterprises. We will summarize and promote good methods and experience in the resumption of work and production and in stabilizing the supply chain, and provide legal aids to minimize the loss of enterprises.

Fourth, we will support the rapid growth of new foreign trade types of businesses including cross-border e-commerce and marketing purchase to speed up building international marketing network.

Fifth, we will deepen opening-up to expand imports. We will ensure we are fully prepared to host the third China International Import Expo (CIIE) and build it as an innovative model for promoting imports.

Sixth, we will strengthen communications and coordination with our trade partners and call on WTO members to lift unnecessary restrictions as soon as possible to create a favorable international trade environment and work together to maintain the stable and sound development of the global supply chain.

Next, we will follow the decisions and arrangements made by the CPC Central Committee and the State Council, strengthen our confidence, and work hard to resolutely win the battle against the outbreak. We will spare no efforts to achieve the goal of ensuring steady and qualitative progress of foreign trade for the year, promote high-quality growth of trade and make positive contributions to the building of a moderately well-off society in an all-round way. Thank you.

Hu Kaihong:

The question of Bloomberg is addressed to the People's Bank of China. I'll give floor to Mr. Chen.

Chen Yulu:

To ease the financing difficulty and high cost of financing of small and medium-sized micro enterprises and private enterprises is an important task of our financial supply-side structural reform, and also the focus of the work of the People's Bank of China all the time. Traditional services and the labor-intensive manufacturing are two worst hit industries since the outbreak of the epidemic. Most of these industries are micro, small and medium-sized enterprises. Therefore, the financial departments giving full support for micro, small and medium-sized enterprises to get through the crisis matters the overall situation of epidemic prevention and control, work and production resumption, employment, and economic recovery. On Feb.1, the five departments, including the People's Bank of China, jointly issued 30 measures, many of them are aimed at supporting micro, small and medium-sized enterprises. The measures required financial institutions to increase credit supply for micro, small and medium-sized enterprises, and should not blindly withdraw, rescind or delay loans. At the same time, these micro, small and medium-sized enterprises who are facing difficulties in repayment can be granted a roll-over and renewal of the loan. In the list of targeted companies with 300 billion re-lending fund, most are micro, small and medium-sized enterprises. 

For the next step, the financial support for micro, small and medium-sized enterprises is mainly showed in the following aspects:

First, we should support commercial banks with sufficient fund to issue loans to micro, small and medium-sized enterprises. In addition to the aforementioned monetary policy tools including targeted cuts to required reserve ratios, supply to meet the needs of agriculture, relending of support small enterprises, and re-discounts, etc., we must strengthen the issuance of financial special bonds to help ensure commercial bank have sufficient funding.

Second, there is a need to support the three policy banks to increase their credit support for small, medium and micro enterprises in the production chain such as manufacturing, foreign trade, spring ploughing and live pig production.

Third, for these micro, small and medium-sized enterprises that have been hard hit by the epidemic, if overdue loans occur during a period of time, the overdue loans can not be reported, and can be given preferential support in the risk-based loan classification.

Fourth, we should guide commercial banks to make full use of the available financial technology with first-mover advantages to comprehensively improve their capacity of risk identification and risk management to decrease the possibility of a rise in non-performing loans. However, it should be pointed out that the average ratio of non-performing loans in China's commercial banks was only 1.86% in 2019, and, although the ratio for micro, small and medium-sized enterprises is slightly higher than the average level, it remains far below the regulatory standard of 5%. In addition, China's commercial banks' provision coverage ratio stands above 180%, so they also have sufficient resources and capabilities to deal with the impact of the epidemic on micro, small and medium-sized enterprises and the national economy. Thank you.

China News Service

What impact does the epidemic have on stabilizing foreign investment? What measures has the Ministry of Commerce taken? How to implement the work arranged by the central government to stabilize foreign investment in the next step? Thank you.

Ren Hongbin:

Since the epidemic outbreak, factors, such as constraints on labor and logistics, disruption to supplies of raw materials, have created some impact and difficulties to the production and operation of foreign-funded enterprises. At the same time, some foreign investors have adopted a wait-and-see attitude. It is expected that the epidemic will have a great impact on attracting foreign capital in the first quarter of this year, but the impact is periodic and controllable. In the long run, China's comprehensive competitive advantages in attracting foreign investment remain the same, and most multinational corporations have maintained their confidence and strategy in investing in China. China remains a top destination for investment of global enterprises.

For implementing arrangements in regard to stabilizing foreign investment by the CPC Central Committee and the State Council, the Ministry of Commerce (MOC) has taken timely action to introduce two policies to guide local commercial authorities to give precise support for stable operation of foreign-invested companies, do more to strengthen services for them and attract more investment, in order to minimize the influence of the epidemic. Currently, we have started to see some results, and major foreign-invested enterprises in Shanghai, Shandong and Hunan have resumed to a level of 80% of their production capacity. A total of 32 South Korea-invested auto parts enterprises in Shandong have been operated at full capacity since Feb. 15, a big step in stabilizing the global auto supply chain.  

On Feb. 23, General Secretary Xi Jinping delivered an important speech at a meeting to advance the work on coordinating prevention and control of COVID-19 and economic and social development and issued important instructions to stabilize foreign investment, which the MOC is conscientiously and strictly enforcing in the following six ways to minimize the influence of epidemic.

First, we will promote more foreign-invested enterprises to restore their production in an orderly way, among which, leading enterprises will be given priority so as to ensure a return to stable in global supply chains.  

Second, we will speed up the implementation of major foreign investment projects, keep a close eye on the major projects still under negotiation, and seek to remove difficulties and push ahead with their implementation. 

Third, we will continually open up sectors like telecommunication, medicine, education, culture and finance wider to foreign investment, and shorten the negative list for foreign investment in the country including free trade zones. 

Fourth, we will keep promoting opening-up platforms and give guidance to free trade zones in speeding up pilot reform and opening-up innovative programs, and ensure national economic development zones can better play their role as dynamic forces in stabilizing foreign trade and investment.

Fifth, more efforts will be made to protect the lawful rights of foreign companies, and a sound service system for foreign investment will be established.

Sixth, we will continue to improve the environment for foreign investors. We will make sure that the Foreign Investment Law and its implementation regulations are well implemented, so as to boost foreign investors' confidence of long-term investment and business operation in China. Thank you.

Reuters:

What is the fiscal situation like in these hard-hit provinces in China? How will they handle the extra fiscal burden this year? Thank you.

Ou Wenhan:

Thank you for your question. Since the outbreak of COVID-19, finance departments have been fully implementing the instructions of the CPC Central Committee and the State Council, and working to ensure adequacy of funding for epidemic prevention and control. We are sparing no effort to ensure people can get medical treatment without worrying about money, also that budget problems across China will not stand in the way of saving lives and containing the spread of the virus. As of Feb. 23, a total 99.5 billion yuan have been issued by finance departments of all levels to achieve the aforesaid goals, 25.52 billion yuan of which has come from the central government. Meanwhile, a series of policies have been introduced. This include further ensuring the supply of key materials, improving incentives for medical staff, issuing preferential tax policies to encourage more donations from society, as well as setting up a "green channel" for government procurement, just to name a few.

We have noticed that after the epidemic outbreak, the balance in government revenue and expenditures, especially those in the hard-hit provinces, have been somewhat affected. With this in mind, finance departments of all levels should make a big push to cut the general expenditure, sparing no effort to raise more funds and optimizing the structure of expenditures. The government revenue and expenditures of all categories should be coordinated with the premise that the funding for epidemic prevention and control is ensured, so as to achieve sound fiscal operations. 

The central government has increased transfer payments to local governments, especially general transfer payments. In order to alleviate the pressure on local fiscal expenditures, we arranged, in accordance with the fact the increase in general transfer payments is significantly higher than the increase in central-level expenditures, to alleviate pressure at the local level. It has also speeded up fund disbursement. For example, in order to support local governments to ensure they do a good job in epidemic prevention and control, as well as in ensuring wages, transportation and people's livelihood at the grassroots level, the central government recently allocated 70 billion yuan of balanced transfer payment and 40.6 billion yuan of awards and subsidies under the county-level basic financial support mechanism. The third step is to strengthen treasury dispatch management. We have been paying close attention to the situation related to local treasury funds, the balance of financial revenue and expenditure of Hubei province and other provinces affected by the epidemic, and strengthened capital allocation to ensure that funds for epidemic prevention and control and funds regard to the "Three Guarantees" are allocated in full and on time.

The epidemic has a certain impact on both financial and economic sectors, but overall, the economic fundamentals have not changed. Economic development is the source of financial revenue. We believe that, with the improvement of the epidemic situation and the gradual recovery of production, and with the strong support of economic development, we can achieve the stable fiscal operations across the country. Thank you.

China Daily:

The COVID-19 outbreak has indeed brought about a big impact on the Chinese economy, so how will it affect the process of financial opening-up? 

Chen Yulu:

Opening-up is China's fundamental State policy, and being open and inclusive is our cultural tradition. Since 2018, the financial system has firmly implemented the spirit of President Xi Jinping's speech during the Boao Forum for Asia Annual Conference, and has unveiled more than 40 measures to expand financial openness. All these measures are powerful and influential, and most of them have been well implemented. The other measures should be implemented in a timely way after the revision of relevant laws and regulations.

Since the outbreak of the epidemic, the financial system has been unsparing in efforts to support prevention and control of the epidemic and ensure orderly work resumption; in addition, it has been putting financial opening-up measures into place without pause. For instance, the People's Bank of China (PBOC) and China Banking and Insurance Regulatory Commission approved the application of Mastercard's Chinese joint venture to set up a bank card clearing institution on Feb 11, which is a very good example. On Feb. 14, the PBOC in collaboration with relevant departments released a guideline regarding speeding up efforts to build up Shanghai as an international financial hub as well as being the source of financial support for the integrated development of the Yangtze River Delta area. Among the 30 newly introduced measures, 11 involve further promoting high-level financial opening-up in Shanghai.

The international community has positively commented on these financial opening-up measures unveiled in the midst of the outbreak prevention and control. This year is very crucial for China's financial openness, because the lifting of foreign ownership caps in securities, fund management and futures has been moved up from 2021 to 2020. We are now working intensively to assist related departments to advance the revision of relevant laws and regulations to make sure all these measures are implemented on time.

The implementation of all these measures lay a solid foundation for further promoting the pre-establishment national treatment and negative list. Of course, we have also been improving our ability to prevent and control risks while further opening up the financial sector. We will strengthen the macroprudential management and building of modern financial regulatory framework to establish a risk prevention and control system that is compatible with opening-up at an even higher level.

Hu Kaihong:

The press conference concludes here, so, thank you all. 

Translated and edited by Zhang Liying, Li Xiao, Zhang Jiaqi, Wu Jin, Wang Yiming, Lin Liyao, Mi Xingang, Zhang Junmian, Zhang Rui, Duan Yaying, Wang Yanfang, Zhu Bochen, Li Huiru, Yang Xi, Huang Shan, Wang Wei, Yuan Fang, He Shan, Zhou Jing, Wang Qian, Guo Xiaohong, Jay Birbeck, Laura Zheng, Geoffrey Murray. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.