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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.

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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.

Read in Chinese.

Read in Chinese

Speakers:

Zhang Xiaohong, member of the Standing Committee of the CPC Committee of Qiaokou District, Wuhan; secretary of the CPC Committee and director of Qiaokou Branch of Wuhan Municipal Public Security Bureau

Yu Ting, director of the Southern Fourth Ward at Wuhan Jinyintan Hospital

Zhao Peiyu, leader of the nursing group of the medical team sent by China-Japan Friendship Hospital (in Beijing) to Hubei province

Wu Hui, deliveryman in Wuhan

Hua Yuchen, music teacher at Ganghua Elementary School of Qingshan District, Wuhan

Chairperson:

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

Date:

Feb. 23, 2020

Xi Yanchun:

Friends from the media, good afternoon. Welcome to this third press conference held by the State Council Information Office in Wuhan, capital of Hubei province. Since the COVID-19 outbreak began, numerous ordinary workers have dedicated themselves to the anti-virus battle with a sense of great solidarity, making a significant contribution towards containing the epidemic. Today, as the chief information outlet of the Chinese government we have invited five typical representatives to share their stories with you. They are Yu Ting, director of the Southern Fourth Ward at Wuhan Jinyintan Hospital; Zhao Peiyu, leader of the nursing group of the medical team sent by China-Japan Friendship Hospital (in Beijing) to Hubei province; Zhang Xiaohong, director of Qiaokou Branch of Wuhan Municipal Public Security Bureau; Wu Hui, a deliveryman working in Wuhan; and Hua Yuchen, a music teacher at Ganghua Elementary School of Qingshan District in Wuhan. Each will first make some opening remarks.

Yu Ting:

Good afternoon, everyone. My name is Yu Ting. I'm the director in charge of the Southern Fourth Inpatient Ward of Wuhan Jinyintan Hospital, as well as a member of the Communist Party of China. On Dec. 29, 2019, our hospital gave instructions to establish a new isolation ward to combat the COVID-19 epidemic. For over 50 days, my team and I have been making strenuous efforts to fulfill our responsibilities. At present, there are six doctors and 20 nurses working on our ward. So far, we have received and treated nearly 200 COVID-19 patients, among whom 150 have been cured and discharged from the hospital.

What we face now is different from our previous work. Every day, we enter the isolation ward wearing airtight protective suits. The ward is packed with patients without any accompanying family members. Some elderly patients are even unable to take care of themselves. Every time we leave the ward bathed in sweat, with droplets upon our face masks. However, we will soon return to the intense work after quickly changing suits.

In the face of the epidemic, as medical workers, we are also under great pressure. We are afraid to return home. Some of us stay at the duty room, and others move into nearby hotels. By doing so, we can assemble immediately in case of any emergency; also, we can protect our families from COVID-19 infection. Our families worry about us constantly, but they always show their care and encouragement.

The prevention and control of the epidemic outbreak is currently at its most crucial stage. I believe that, with the concerted efforts of all our medical workers, we will be able to win the battle against the epidemic with great unity, mutual encouragement and strong confidence.

I always tell my team that, although we are all very tired, we must not be mentally exhausted or allow a spiritual collapse. Whenever we don this white uniform, we should always keep our noble mission firmly in mind, healing and saving lives with boundless love as a medical worker should always do.  

Xi Yanchun:

Thank you, Doctor Yu Ting. Your hard work is greatly appreciated. I know that you are in protective suit most of the time when you are working. Many patients may never see your face under the mask when they are fully recovered and discharged from the hospital. Here, I suggest that our friends from the media take a close-up image of Doctor Yu once again, especially for those recovered patients to see clearly the doctor who has cured them. Thanks again, Doctor Yu. Next, let's give the floor to Ms. Zhao Peiyu.

Zhao Peiyu:

Hello, everyone! I am Zhao Peiyu, head of the nursing group of the medical team sent by the China-Japan Friendship Hospital in support of Hubei province. I have been in Wuhan for 20 days. 

Since the outbreak of the epidemic, the hospital organized the staff to register to provide support for Wuhan. Everyone responded actively. I remember that more than 930 nurses had signed up. Some people said they had experience in treating SARS. Some people said they are a member of the Communist Party of China (CPC). Some people said they do not have too much family burden. As a member of the CPC, I feel very proud of being a member of the medical team to make my own contribution to combating the epidemic. 

The hospital sent the best nursing team for treating respiratory diseases and critically-ill patients. We brought the best protective materials and living materials for comprehensive guarantee. In more than 20 days, we received more than 60 critically-ill patients. So far, 20 of them have recovered and been discharged from hospital after careful treatment and care. 

In the invisible war, we are not only angels in white, but also soldiers. We can provide the most professional care for the patients and treat them like family members. We are confident that we will be able to win this war. I want to tell the patient family that you can entrust your family members to us. Please rest assured. Thank you!

Xi Yanchun:

Thank you, Zhao Peiyu. How long have you been in Wuhan?

Zhao Peiyu:

20 days.

Xi Yanchun:

That's nearly three weeks, do you miss your family?

Zhao Peiyu:

To be honest, a little. 

Xi Yanchun: 

Is it possible for the camera to give a close-up to Ms. Zhao? She can take this opportunity to speak to her family and please let Ms. Zhao speak to their families on behalf of more than 30,000 medical workers offering support in Wuhan. 

Zhao Peiyu:

I want to tell my family that you can all rest assured. I am fine here in Wuhan, and the work is going well. I am part of a team of honor. We are undertaking an arduous mission and I believe we will successfully complete it. Rest assured. 

Xi Yanchun:

Thank you, Peiyu. Now, we give the floor to Zhang Xiaohong, director of the public security bureau of Qiaokou district of Wuhan. 

Zhang Xiaohong:

Hello, everyone! I am Zhang Xiaohong, head of the Qiaokou branch of Wuhan Municipal Public Security Bureau. At 1:30 a.m. on Jan. 23, I received an order from the municipal bureau to mobilize 300 police officers within two hours to be posted at Wuhan Tianhe Airport for traffic regulation. At that moment, I realized that the battle against the novel coronavirus had started in Wuhan.

In the course of over one month, 1,500 police officers from our Qiaokou branch have worked around the clock at various traffic points, communities and hospitals, ensuring public security and providing services for people's convenience. In this fight without smoke, we have, without a single word of complaint, taken each and every order from the municipal and provincial bureaus and fulfilled their assigned tasks conscientiously. There is a popular slogan in our branch, saying, "My participation makes the victory a sure thing." I am deeply proud of all my heroic colleagues. Thanks to all of them.

Xi Yanchun:

During my talk with Mr. Zhang, he said a lot about his colleagues, about their tireless and patiently quiet work. There will be more time later for story sharing. At this moment, let me express gratitude on behalf of the people to all the police officers. Thank you all! Now, I would like to give the floor to Mr. Wu Hui.

Wu Hui:

Hello, everyone! My name is Wu Hui. I am known as "Laoji" on the internet. I am a deliveryman in Wuhan. I have a special feeling for this city because I spent four years studying here. Last July, I came back to work as a deliveryman.

It was said that there would be more online orders during the Spring Festival. So, I planned to keep working during the holiday to make more money. However, as the epidemic got worse, I felt scared and decided to have a break starting from Jan. 24. That night, I was scrolling through the Weibo feed while eating my hot pot dinner. Knowing that some front-line medical workers could only have instant noodles for their dinner, I felt so upset that I thought I should do something. Then, I decided to continue working during the holiday.

My first order on the first day of the Lunar New Year took me to the Respiratory Medicine Department at the Zhongnan Hospital of Wuhan University. I was really nervous, actually. Not until I got there and saw that everything was going on in an orderly way, did I finally calm down. Since then, I have received various kinds of orders, met various people and at the same time been touched by various heartwarming moments. After sharing all those moments on my Weibo account, I received support and encouragement from numerous netizens across the country. Because of such support and encouragement, together with the help from a growing number of deliverymen, I no longer have any fear.

Gradually, I found that a new meaning has been embedded in the work of deliverymen. We have become the "ferrymen" to maintain the smooth running of the city. I believe that Wuhan will never be alone as long as we stay here.

Xi Yanchun:

Thanks, Wu Hui. His username on the internet is "Laoji." Deliverymen like Wu, as well as those sanitation workers, are ordinary people that we frequently see but tend to pay little heed to. Although we seldom pay attention to what they look like, they have definitely contributed a lot in a quiet way to the smooth running of the city. Thank you, Wu Hui. Now let's welcome our last speaker Hua Yuchen, a post-90s girl.

Hua Yuchen: 

Good afternoon! My name is Hua Yuchen. I'm a music teacher from Ganghua Primary School in Qingshan District, Wuhan City. I'm also a post-90s Wuhan native.

Since the outbreak of the epidemic in my hometown, I've paid close attention to it and been very worried. However, I'm neither a doctor who can save lives at the frontline nor someone who has resources to supply. Being an ordinary citizen, especially an ordinary young man in the city, I'm very eager to make my own contribution and therefore I signed up as a volunteer.

Just like other volunteers, I go to work wherever needed. I once served as a driver picking up medical staff, a body temperature measurer at a toll station, a porter moving supplies, and now I'm a volunteer broadcaster at the Qingshan Improvised Hospital.

Every day we broadcast music, proses and related news about progress of the treatment so as to relieve patient stress. Though I'm not a professional broadcaster, I try to do my very best every time. For example, on Feb. 14, I said: "Maybe we're not the people whose company you want the most, but we are staying here together now. So, I call on everyone to smile at the people around you and give them your best wishes. Let's show our gratitude to the medical staff. Let's all promise to recover as early as possible and go home together."

Though I did not know their responses and facial expressions due to the wall between us, afterwards I heard that they had truly encouraged each other. I thought what I did was meaningful since I brought warmth to others and also myself. Thank you.

Xi Yanchun:

Thank you. Your words move me very much. I know that volunteers are of different ages. Many of them are the elderly, and there are also many young people. So, we truly hope more people can join the volunteer group.

Now, this is the end of the first part of this press conference. Now, we'll take questions from the press. Once again, we'll use video connection. Before asking your questions, please inform us the media organization you represent. Now let's begin.

CCTV:

All walks of life contribute to the epidemic control battle this time. My question is: what impresses you most as a person working at the frontline?

Zhang Xiaohong: 

What impresses me most is the spirit of the police embodied by the grassroots policemen during the battle. Since the outbreak of the epidemic, they have dealt with patients every day, with a risk of becoming infected anytime. Being director of a branch bureau, I'm worried about their safety. But our policemen have bravely joined in the fight despite the risk of being infected. Our policemen are stationed at 47 hospitals and quarantine sites. At one improvised hospital, six CPC-member police officers wrote applications to work in the hospital for 28 days in a row without going back home. Together with nurses, they help and comfort patients, patrol the place, and mediate disputes. They could be infected anytime.

I asked team leader Peng Cong, "Are you afraid working at the hospital?" He replied: "Yes. But when people are all afraid, if the police do not go to the front, who will?" I can only say to them: "Call you family every day and give them a message of safety."

"The police force will never pull back from the battle against COVID-19." These are not only the words written in our letter of volunteering, but also truly represents our duty as police officers. 

My colleagues who drive patients to hospital in a police car are also at high risk of infection. So far, we have convoyed more than 1,200 patients to hospital. Last week, there was a patient living in Zongguan Street unable to care for themselves. As this patient was suddenly in critical condition and had to go to hospital, a call was made to the police. Yi Xin, a 24-year-old colleague of mine at Zongguan Police Station, hurried to the patient's house. It was on the sixth floor in an old-fashioned residential building with no elevator. Yi Xin rushed to the sixth floor and carried the patient on his back to go downstairs. As this patient was vomiting a lot, Yi had to move step by step to help relieve the obvious discomfort. Finally, Yi carried this patient to the ground floor, and brought this person to the pulmonary care department by car. The patient's family members were very grateful. "Thank you so much," they kept saying to Yi Xin.

Where there are difficulties there are policemen to help. Where there is epidemic spreading, there are policemen engaged in the fight. Although there are still many challenges facing us, we have faith that the victory against COVID-19 in Wuhan will finally be achieved with nationwide support. Never once did I doubt the arrival of a beautiful spring. This harsh winter of COVID-19 will be over soon. Thank you.

Xi Yanchun:

Anyone else want to say a few words?

Hua Yuchen:

I would like to add a few words. What strikes me most these days is probably the struggle I feel every night before I go home. I am a volunteer working amid an epidemic. I was born in the 1990s, and now I live with my parents, so I go home every night. At first, I was afraid to tell my parents that I had volunteered to help tackle the COVID-19 outbreak. I lied and told them that I was on my shift. I was afraid that they would become overly-worried about me. I was terrified that they might stop me from volunteering. I felt bad, and I struggled a lot every night before going home. I was afraid that I might carry home the virus, and I might put my parents in danger. It's true. I never scared of anything when picking up frontline medical staff or walking into temporary hospitals. But I really struggled when stepping into my parents' house.

I finally confessed to my parents because I was afraid they would neglect protecting themselves if they had no idea about what I was doing. I still remember my mother's reflection after hearing my words. She sat on the couch with her eyes wide open, looking very upset. Then she asked me why I didn't talk it over with them before making such a big decision. She asked, "Don't you know how dangerous it is outside?" It was a long time before my father asked where I was working. I replied, "On the Erqi Bridge." He said he would like to work there instead of me. I refused and said, "You're now with a high risk, my immunity is stronger than yours." He faltered, "Does your team still need some person? I just want to go with you together. I won't worry only if I see your working environment." 

Now, they know I'm a volunteer. However, they have said neither "we support you" nor "don't go out." Every night, no matter how late I come home, they are waiting for me, helping me with disinfection, and bringing me chicken soup after I take a shower. They always tell me to eat more, drink more, so as to improve my immunity. I know in my deep heart that they are supporting and protecting me in their own way.

Just like thousands of volunteers, we work hard outside every day, but are afraid to go back home every night. Because at home, there are our parents and children; we are worried bringing danger there.

Just few days ago, one of our friends sacrificed his life when delivering supplies. He told his son that he went to Wuhan to beat monsters instead of working as a volunteer. We prefer white lies because we are really afraid our families will feel scared when they know the truth. In fact, we are struggling with our own choices every day, but we still insist on what we chose to do. We hope to stay with Wuhan all through the fight. We vow to advance and retreat with Wuhan together. Thank you.

Zhao Peiyu:

I would also like to say a few more words. The support and encouragement we've received have deeply moved me. We have heard messages of reassurance from our families that everything is well at home; wishes of a triumphant victory from our colleagues in Beijing; as well as messages of gratitude from local people in Wuhan, who have greatly supported us and guaranteed our supplies of necessities. These are all so touching and inspiring for us. I believe that the efforts of people across the country will allow us to overcome the epidemic. Thank you.

Voice of Hubei, Radio News Channel of Hubei Radio and TV Station:

These days, food deliveries in Wuhan have not been easy to order. Therefore, we especially admire the courage and devotion demonstrated by the delivery drivers here. May I ask you to share with us the stories about the people or events that have impressed you most?

Wu Hui:

I would like to tell you something about a doctor's family. It happened late one evening when I was finishing work. Just as I was getting ready to head home, a delivery request came through with a note saying, "this is a meal for my father cooked by my mother. He is a doctor at frontlines. Thank you." My eyes brimmed with tears; this was a delivery I must accept. Their home was not far away, so I arrived there soon and called the girl. She said her father's surname was Chen, and he was a doctor at the front line fighting the epidemic. He was afraid of cross-infection and stayed in a hotel near the hospital after work. The girl asked me again, if I could give the meal to her father soon.

Her mother gave me dinner. I hurried to the hotel where Dr. Chen was staying. However, upon my arrival, I discovered the doctor had already been summoned by the hospital. I felt so sorry that I hadn't fulfilled the wish of the little girl. I don't know the full name of Dr. Chen, nor do I know the hospital where he works. All I know is that he is a dedicated doctor and a good father. He had a good daughter who is so proud of him and a wife who supports him by enabling him to concentrate on his work. I felt so honored to be able to convey the love among the members of a family like that. They are an ordinary family, and they are a great family. 

I wish Dr. Chen and his family safety and happiness.

Guang Ming Daily:

Over the past few weeks, we've heard stories about medical staff that have melted our hearts. This question is for the medical staff: Have you ever been impressed by the patients you have treated? Would you please tell us some of their stories? Thank you.

Yu Ting:

There was an 82-year-old man who was admitted to the hospital when he was in a critical condition. During first few days, he was not able to live independently, as he became breathless once he left the bed to walk and was unable to speak coherently. However, after a fortnight of clinical treatment and intensive care, involving not only therapeutic approaches but also emotional support, the elderly man was discharged from hospital. On that day, when I congratulated him on his recovery, he firmly held my hand and said, "thank you, Dr. Yu, thank you, you have saved my life. May I ask you a favor? Can you take a photo with me? It would be the most precious picture of my life." So, on that day, we stood in front of the media cameras, and we both shouted: "Stay strong, Jinyintan! Stay strong, Wuhan! Stay strong, China!"

Watching a patient overcome the illness, after fighting day and night with the disease, and leave the hospital with a smile is very exciting. This was also a relief to our medical staff, not only a psychological relief, but also a relief for our tired bodies. Thank you. 

Zhao Peiyu:

I also want to share with you a story that happened in the ICU. We had performed a bronchotomy for a female critical patient and put her on a ventilator, so the patient was unable to talk. When I was making my rounds, she was writing on the quilt with her finger. I looked closer and realized that she was writing the character for "water." I asked her if she was thirsty and she blinked. I felt very sad. I told her, "you can't drink water yet. Please hang on, okay?" The patient blinked again and gave me a thumbs-up. I can actually feel their longing for life and also the trust and support for us medical staff. Fortunately, after careful treatment, this patient no longer need the ventilator and has entered the recovery stage. Thank you.

China Youth Daily, Youth.cn:

Lots of volunteers from Hubei province have participated in this battle against the COVID-19 outbreak, among whom are many post-90s and post-95s generation. Could you please share with us your feelings working as a volunteer for these days? Thank you.

Hua Yuchen:

I feel very proud that I can sign up for the volunteer work at this special time. I got a lot of positive energy from working within this team. We volunteers come from all walks of life and different age groups. When the epidemic is over and we take off our masks, we may not recognize each other if we encounter them on the street. But at this moment, we have united spontaneously because we all want to protect our hometown.

Every day, I see my fellow volunteers fighting in every corner where they are needed, and I feel positive and powerful. At Beihu Toll Station, I saw huge trucks and lorries delivering materials entering Wuhan from all directions. The vehicles carried banners saying "Wuhan, don't be afraid, we're here to help you!" I was deeply moved. A village head from Wenchuan, Sichuan province impressed me most. Along with his villagers, he drove for more than 20 hours to deliver supplies to Wuhan. Later, I heard the story behind this action. Wuhan extended a helping hand in the aftermath of the Wenchuan earthquake in 2008. Children of their village were arranged to stay in Wuhan at that time. So, their banner says "Wuhan, hang in there! Wenchuan comes with gratitude!" Words are powerless to describe such moving and uplifting scenes. At those moments, you will feel no fear and you know Wuhan will win.

Also, I would like to say I am very proud that among the medical staff and volunteers, there are many post-80s, post-90s, and even members of the post-95 generation. Our generation of young people have the courage and ability to shoulder the responsibility. We can take on the tasks entrusted to us in this era. I hope the whole society can give us more encouragement and believe that we can.

I am only one of many volunteers who devote their time and energy, busily working in various streets. I hope more people can join us. The epidemic is not over yet. We need more people to join us to protect our hometown and defend our Wuhan. Thank you!

The Beijing News:

Since the outbreak, medical workers have been fighting at the forefront of the epidemic. Ms. Zhao Peiyu, you are the only speaker here today who is not a Wuhan local. Can you share with us your thoughts and feelings about participating in epidemic prevention and control while being away from home? As a nurse, do you have anything special to share with us? Thank you.

Zhao Peiyu:

Although I am not a local medical worker, I feel that all those who come to Wuhan to assist the city have their hearts tightly tied to Wuhan and Hubei. As I said earlier, since the outbreak in Wuhan, many employees from our hospital have volunteered. After we arrived in Wuhan, we fought at the forefront. To be honest, we are still a little nervous and afraid. First, we are facing a new virus and a new epidemic; second, I lead a nursing team, so I am very worried about my team members' safety. However, as a nurse, I want to say that in addition to providing the most professional care to patients, we shall take a very critical step to support patients -- we shall encourage them and help them through difficult times. Thank you.

Xi Yanchun:

These ordinary workers have been fighting in their posts to fulfill their duties, especially medical workers. I heard that they rushed to the press conference after their night shift. I can't bear to let them spend too much time here. They need rest. So, let the following question be the last one, Ok? Reporters, if you have a special question, please ask as soon as possible.

Xinhua News Agency:

Thank you very much for sharing everyone. One of the best sentences we have heard recently is, "Spring shall always come." I want to ask the frontline workers: What are you looking forward to the most? Thank you.

Xi Yanchun:

I guess everyone has something to say, so please say a few more words.

Yu Ting:

I have asked all the doctors and nurses around me, "What are you looking forward to the most?" Everyone agreed and said, "We are looking forward to the immediate end of the epidemic." After all, the physical and mental fatigue have made them reach their limits, but still, everyone is clenching their teeth to hold on. Some doctors are reflecting on their lives, saying that when the epidemic is over, they will no longer save money. Instead they will take their wives and children on vacation. Some young non-native nurses just want to go home as soon as possible and throw themselves into the arms of their parents and cry.

During this epidemic, many elderly patients -- especially those with severe health issues and multisystem diseases -- have lost their lives. Many of their children cried loudly on the phone or outside on the ground floor of hospital buildings. If I could turn back time, I think they would not be so eager to leave home to earn money, but instead, would choose to spend more quality time with their elderly parents. Therefore, I hope our scientists can develop vaccines as early as possible to overcome COVID-19.

Zhao Peiyu:

Wuhan is a beautiful city. I hope when the epidemic is over, I will travel there as a tourist, returning to the place where I fought against the epidemic, and feast on a bowl of hot-dry noodles on the street lined with the cherry blossom. Thank you.

Zhang Xiaohong:

I once asked my police friends what they expected most at the end. Some criminal policemen told me they expected a few days' holiday to make up for the missed Spring Festival dinner with their families. The community policemen told me in this battle against epidemic, many volunteers are very active, so we can mobilize the volunteers to perform the prevention and control work after the epidemic. Several patrol police officers hope our Qiaokou police station can resume football matches after the epidemic, so they have the opportunity of playing again. My biggest hope is that our infected policemen will recover as soon as possible. When winning the victory against the virus, we can take masks off to smile, have a talk with people on the street, and see the hustle and bustle come back to the heroic city. Thank you.

Wu Hui: 

Because I am a deliveryman, I always drive on the road and meet many ordinary workers like myself. Once, one deliveryman said his customers wanted to hug him. When he said this, he seemed to glow. A sanitation worker engaged in a video chat with his family by the roadside. A fruit vendor offered to help me with the uploading work. The girl working at the post office helped to look for bigger cartons for package. Because the lift was not working, the deliveryman had to walk up the stairs while caring heavy parcels. So many ordinary people stick to their posts, so I believe it is the virus that will lose the battle. I hope when the battle is won, ordinary people like myself would get more understanding and respect, and I would make more money so I can live a better life in Wuhan. I also have a small wish that when conditions are ripe, I can start my own business again. At last, I want to go home to see my mother after the epidemic is over. Thank you.

Hua Yuchen:

My greatest wish is that all the patients can be cured and discharged from hospital and reunite with their families as soon as possible, and the epidemic is ended quickly. I hope all the medical staff and soldiers who are fighting on the frontlines return home safe. As a volunteer, I also wish my fellows stay healthy. We have agreed to remain in contact and hug each other gleefully when the epidemic is over and it's safe to take off facial masks.

As a teacher, I wish the new semester can start as soon as possible. I miss my students very much, and I desire to return to the campus and see their smiling faces. I want to listen to what they have been through and share my experiences with them.

As for myself, I wish to put on exquisite makeup and stroll through shopping malls with my bosom friends. I also want to enjoy a spicy hotpot with my dear friends. Most of all, I wish we can take to the street, breathing and enjoying the sunshine unrestrainedly.

Like what Ms. Zhao just mentioned, I also wish all the compatriots and friends who are helping us at the moment can come to Wuhan again after the epidemic. We hope you will have the chance to know more about this city, but you are now too occupied to experience it properly. We want to walk you around, take you to the Yellow Crane Tower, and present you Wuhan delicacies. You will always be remembered and appreciated by Wuhan people. Thank you!

Xi Yanchun:

I am deeply touched by the stories of the five workers, so are friends from media, I bet. They are as ordinary as our classmates, our neighbors, and the passing pedestrians. Facing the epidemic, numerous ordinary people like them bravely take the challenge and dedicate themselves to the outbreak control. In them, we see the magnificent strength of the national solidarity. In them, we see the Chinese Spirit forged during the nation's continuously overcoming difficulties and obstacles. I firmly believe that, with the heroic people fighting together, we will definitely win the war of epidemic prevention and control. Now, let's pose for a group photo. Let's cheer for China, cheer for Hubei, cheer for Wuhan! This is the end of today's press meeting. Thank you again.

Translated and edited by Zhang Liying, Liu Sitong, Liu Qiang, Li Xiao, Mi Xingang, Zhu Bochen, Lin Liyao, Wang Yiming, He Shan, Fan Junmei, Wu Jin, Zhang Rui, Li Huiru, Wang Qian, Yang Xi, Wang Wei, Yuan Fang, Fan Junmei, Huang Shan, Guo Xiaohong, Wang Yanfang, Jay Birbeck, Laura Zheng, 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:

Ding Xiangyang, member of the Central Guidance Team in Hubei, and deputy secretary-general of the State Council

Lian Weiliang, member of the Central Guidance Team in Hubei, and deputy head of the National Development and Reform Commission

Yu Yanhong, member of the Central Guidance Team in Hubei, member of the Leading Party Members' Group of the National Health Commission, secretary of the Leading Party Members' Group and deputy head of the National Administration of Traditional Chinese Medicine

Chairperson:

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

Date:

Feb. 20, 2020

Xi Yanchun:

Friends from the media, good afternoon. Welcome to the second press conference held by the State Council Information Office in Wuhan, capital of Hubei province. In accordance with the decision of the Communist Party of China (CPC) Central Committee, the Central Guidance Team led by Vice Premier Sun Chunlan, also member of the Political Bureau of the CPC Central Committee, arrived in Wuhan on Jan. 27 to strengthen the overall work surrounding the COVID-19 epidemic prevention and control on the frontline.

A lot of attention is being paid to this work. Today, we have invited three members of the Central Guidance Team in Hubei to brief you at this press conference. They are Mr. Ding Xiangyang, deputy secretary-general of the State Council; Mr. Lian Weiliang, deputy head of the National Development and Reform Commission; and Ms. Yu Yanhong, member of the Leading Party Members' Group of the National Health Commission, secretary of the Leading Party Members' Group and deputy head of the National Administration of Traditional Chinese Medicine. They will introduce the efforts being made by the Central Guidance Team in Hubei to organize and guide the work related to epidemic prevention and control. They will also answer your questions. First, I'll give the floor to Mr. Ding.

Ding Xiangyang:

Friends from the media, good afternoon. The sudden outbreak of COVID-19 has triggered a special "battle" unprecedented since the founding of the People's Republic of China. The novel coronavirus, which has spread in an unexpectedly violent and extensive way, has led to difficulties and pressures rarely seen before in our society. The lives and interests of the people always come first. Since the outbreak began, the CPC Central Committee with Comrade Xi Jinping at its core has given earnest consideration to the situation, giving top priority to saving people's lives and protecting their health, as well as placing epidemic prevention and control work as the most important task on the current agenda.

General Secretary Xi Jinping leads, directs and organizes the arrangement of the work of epidemic prevention in person. He has called numerous meetings, heard reports and issued important instructions. On Jan. 25, the first day of the Lunar New Year, General Secretary Xi chaired a meeting of the Standing Committee of the Political Bureau of the CPC Central Committee to discuss the prevention and control of the outbreak. Under the unified leadership of the CPC Central Committee and thanks to the concerted efforts made by all sectors of society, the epidemic prevention and control work is being carried out in a vigorous and orderly manner, with various measures conscientiously being implemented. All Chinese people have come together, creating an invincible force for fighting against the outbreak.

Premier Li Keqiang has held many State Council executive meetings, and chaired meetings of the Leading Group of the CPC Central Committee on Novel Coronavirus Prevention and Control, making arrangements for the epidemic prevention and control work, and coordinating important issues in person, such as medical rescue and the provision of needed medical supplies. Comrade Wang Huning, among other senior CPC leaders, has also issued instructions regarding the control of the epidemic.

Hubei, especially the provincial capital Wuhan, is the top priority for defeating the virus and winning the integrated people's war against the epidemic. General Secretary Xi Jinping emphasized that Wuhan is crucial for the victory in Hubei, which in turn will determine the outcome of the nationwide battle. In accordance with the instructions issued by General Secretary Xi and decisions made by the CPC Central Committee, the Central Guidance Team led by Vice Premier Sun Chunlan, arrived in Wuhan on Jan. 27, the third day of the Lunar New Year. From the very moment of arrival, Comrade Sun Chunlan and other members of the team have been working around the clock to tenaciously fight to win this tough war against the outbreak.

Our comrades are heedless of the danger in the frontline battle against the COVID-19. They identify problems and solve them in a timely way to guarantee the successful implementation of decisions and arrangements by the CPC Central Committee and the State Council and ensure that the CPC flag waves high over the battle zone all the time. The CPC Central Committee sent the Central Guidance Team to guide epidemic control and prevention work in Wuhan in order to show the people living in Wuhan, and all the rest of the nation, that Wuhan is not a "lonely island" and doesn't fight in isolation. General Secretary Xi Jinping and the CPC Central Committee always stand with the people of Hubei and Wuhan! We join hands and we breathe the same air and share the same fate. Wuhan doesn't only belong to the people of Hubei, but also people in the whole country. We, together with the people of Wuhan, are dedicated to defending this beautiful land, and our shared home!

We have firmly curbed the spread of COVID-19 and will win the battle of epidemic control and prevention. This is a nationwide campaign in which there are no idle bystanders, and we must pull together to win the battle. The frontline of the fight against the virus is truly a battlefield. Medical workers proceed without hesitation and in contempt of all dangers. On the eve of the Spring Festival, they gathered urgently from across China to provide medical aid for Wuhan. In the face of epidemic, they step forward and hold steadfastly to their faith – if there is a war in the country, we will answer our country's call and win it. Currently, more than 30,000 medical personnel, including military medics, have been sent to Wuhan from across the country to provide aid and fight the epidemic. We have seen them proceed without hesitation, without a single thought of withdrawal. When medical supplies were urgently needed, they changed the four-hour shift to a six-hour one for saving protective suits. Some comrades even wear diapers to work to avoid any natural breaks. They run a race with death, fight against virus, and pump life into patients. They are the most beautiful people in the new era.  

Since the outbreak, friends from the media also face danger of infection on the frontline, and play an important role in recording the epidemic, its control and prevention, and tell the healing stories happening at the epicenter to help the public understand objectively and comprehensively the situation on the frontline. Friends from the media, you present the world an unyielding, loving and invincible China before the world with your pen, paper, camera and microphone. On behalf of the Central Guidance Team in Hubei and Vice Premier Sun Chunlan, I'd like to express our sincere thanks to everyone!  

I remember a saying that there is no winter that will not pass and no spring will not come. Chinese people are great people, so is the Chinese nation. In face of ruthless epidemic, as long as we rally around the CPC Central Committee with Comrade Xi Jinping at its core, come together, try our best to fight bravely, and press forward against all odds, we will win this people's war. The warm spring will come on time.  

At last, I wish to extent my gratitude to officials and residents in Wuhan and Hubei. They strictly implement the major decisions and arrangements by the CPC Central Committee and the State Council, and work hard with their sweat and labor for the virus fight. I want to thank medical workers on the frontline again for their hard work against the clock. Some of them unfortunately became infected and even gave their life, which reflect their noble spirit of boundless love and great humanity. On behalf of the Central Guidance Team in Hubei, I want to give my tremendous amount of credit to comrades fighting on the frontline and express my deepest sympathies for medical workers dying valiantly and patients killed by the COVID-19. 

Xi Yanchun:

Please stand up.

(Moment of silence)

Take a seat please.

Now, I will give the floor to Mr. Lian.

Lian Weiliang:

Ladies and gentlemen, friends from media, good afternoon. The CPC Central Committee and the State Council have always been paying close attention to Hubei and Wuhan in particular, as well as the progress being made of our fight against COVID-19. People across China and the world care a lot about what is happening in the area of Hubei and Wuhan. Since the outbreak of COVID-19, the shortage of medical supplies initially restricted the epidemic's prevention and control program, affecting patient treatment and threatening the safety of medical staff. However, the CPC Central Committee and the State Council have attached great importance to dealing with this issue. General Secretary Xi Jinping has issued instructions on many occasions that medical resources and preventive supplies should be ensured for the frontline area, and top priority should be given to the needs of frontline medical staff and patients. Premier Li Keqiang also stressed the need to coordinate medical resources across China, and those supplies urgently-needed in Hubei and Wuhan should be prioritized. In addition, the supply of people's daily necessities in that area should be ensured. The Central Guidance Team in Hubei has fully implemented the decisions and deployment of the CPC Central Committee and the State Council, taking the life and health of people in the hardest-hit regions as the absolute priority. We have strived to make use of all available resources and coordinate all possible forces in society to effectively ensure the supply of the needed materials.

Due to the joint efforts from the entire society, major medical supplies for frontline medical staff have been ensured, and the supply of people's daily necessities has achieved basic sufficiency. The change from supply shortage to general sufficiency should be, above all, attributed to the importance attached to this issue by the CPC Central Committee and the State Council. All possible resources across China have been coordinated under the joint prevention and control mechanism to ensure supplies in Hubei, and especially in Wuhan. Second, a growing number of businesses and manufacturers have responded to the appeal of the CPC Central Committee and the State Council to quickly resume work and production with well-planned epidemic prevention arrangements. Many companies have expanded their production capacity or switched their production line to medical products, so that the output of vital medical supplies has greatly increased. Third, great credit should go to the generous donations received from all over China and the world. Fourth, medical staff and other workers facing a high risk of infection, including news reporters, have adopted a scientific, reasonable, categorized and economical way of using these medical supplies. Fifth, "wartime mechanisms" have also been adopted in many respects to tackle emergency situations. Some companies have actually organized production ahead of signing deals, and some have arranged delivery without any advance payment. The fight against COVID-19 has literally become the top priority.

Nevertheless, we should also be aware that, according to the requirement of leaving no patients unattended, there will still be an enormous need for medical supplies with the increase of extra medical staff and patients undergoing treatment. There are structural problems in some types of medical supplies, and individual problems still exist in different medical institutions and different cities. After the implementation of strict control and management, residents may find it less convenient to buy daily necessities. There are likely to be shortages of some goods from time to time.

At this most critical moment in the prevention and control of COVID-19, Vice Premier Sun Chunlan has required the Central Guidance Team in Hubei to establish a communicative mechanism with authorities in Hubei and Wuhan to secure all the supplies on a daily basis. The coordination, tracking, as well as the results of each supply will be conducted through this mechanism on a daily basis. Individual problems will also be resolved in the same way. In addition, a direct communicative mechanism has also been established between the Central Guidance Team and assisting medical teams as well as key hospitals in the province, so that the existing problems could be solved as soon as possible.

Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, as well as the huge support from all of society, the number of new confirmed cases outside Hubei has dropped for 16 consecutive days. This provides favorable conditions to secure the medical supplies and daily necessities for Hubei and Wuhan. We have faith, and are determined to further work on this aspect, so as to provide strong support for the battle against COVID-19. Thank you.

Xi Yanchun:

Thank you, Mr. Lian Weiliang. Now, let's give the floor to Ms. Yu Yanhong. Please.

Yu Yanhong:

Good afternoon, friends from the media! The CPC Central Committee and the State Council have laid great emphasis on epidemic control and prevention work. General Secretary Xi Jinping has given clear instructions that the diagnosis and treatment plans should be enhanced continuously by combining traditional Chinese and Western medicines and the diagnosis and treatment procedures, use of effective medicines, and rescue measures of severely-ill patients should be made clear as soon as possible. Premier Li Keqiang has stressed that the combination of traditional Chinese and Western medicines should be stepped up, especially in bringing about in-depth involvement of traditional Chinese medicine (TCM) in the process of diagnosis and treatment. The Central Guidance Team in Hubei has paid great attention to medical treatment, and has organized 278 medical teams with a total of 32,395 members to meet the task in Hubei province, using a combination of traditional Chinese and modern Western medicines. They have kept on improving their diagnosis and treatment plans, and tried to positively promote the critical passage of the work. Vice Premier Sun Chunlan has advanced the medical rescue work with great efforts and strongly promoted the involvement of TCM in the whole process of epidemic prevention and control work in a rapid way. Now, I will brief you the information of the role of TCM in the medical treatment efforts.

First, we have mobilized the resources of all the departments and conduct medical treatment instantly. We have integrated the strengths of the competent departments of the TCM at national, provincial and city levels, directed and deployed them in unison, transferred 3,200 medical personnel to assist the efforts in Hubei, organized four batches of 588 people each to form national TCM teams who have joined with medical staff at the Wuhan Jinyintan Hospital, Leishenshan Hospital, Hubei Provincial Hospital of Integrated Chinese and Western Medicine and also taken over the Jiangxia makeshift cabin hospital, dispatching high-level expert teams to conduct clinical treatment and observation and summarize the experiences there, getting to know and treat the disease from the perspective of the TCM. Many TCM academicians have offered advice and suggestions, providing demonstration and research knowledge, and formulating treatment plans that have been incorporated into the third, fourth, fifth and sixth editions of the national diagnosis and treatment plans and guided the TCM treatment work across the nation. 

Secondly, in order to achieve the desired results, we have combined traditional Chinese and modern Western medicines, conducting treatment by classification, and improving medical efficacy. In order to improve the recovery rate and lower mortality rate, the system and mechanism of the in-depth involvement of TCM in the diagnosis and treatment process have been enhanced. As for the quarantine areas, the TCM treatments have been applied more by organizing 10 TCM expert teams to visit patients with mild symptoms during the recovery phase, so as to complete work assigned to each provincial, municipal and district TCM hospitals. As for the mobile cabin hospitals, each one is manned with two or three TCM experts to promote standardized treatment. As for designated hospitals, the TCM and Western medicine joint consultation system has been established. As for severely-ill patient treatment, a total of 12 teams formed by State-level TCM and Western medicine integration ICU experts have been set up to make doctor visits and offer targeted treatment plans. At the same time, the TCM and Western medicine joint consultation system has also been implemented at the Sino-French New City Branch of Tongji Hospital, Wuhan Pulmonary Hospital, Leishenshan Hospital and other designated hospitals.

Right now, the TCM treatment in the epidemic prevention and control has achieved progress and its application extent and depth has kept improving. The close collaboration between TCM and Western medicine has scored a number of breakthroughs and a batch of effective prescription and traditional Chinese medicine have been found and achieved great curative effect in the treatment of COVID-19. We will implement the system of combining TCM and Western medicine in detail, give full play to the role of the former and safeguard people's safety and health.

Xi Yanchun:

Thank you, Ms. Yu Yanhong. Next, we will move on to questions. Please ask questions via the video link and identify your news outlet before asking your question. Now the floor is open for questions.

CCTV:

The Central Guidance Team has carried out the epidemic prevention and control work on the ground since it was sent to Hubei province nearly a month ago. In the fight against the epidemic, what role has the guidance team played and what function does it serve? What measures have been taken during this period and what will it focus on next? Thank you.

Ding Xiangyang:

Following the requirements of the CPC Central Committee, the Central Guidance Team has been sent to Hubei with three main responsibilities:

First, we should guide and supervise the Hubei and Wuhan authorities in the implementation of the important instructions given by General Secretary Xi Jinping and of the decisions and work deployments made by the CPC Central Committee. We must ensure that prevention and control measures are fully implemented there in order to win the battle against the epidemic.

Second, we should guide the epidemic control work of Hubei and Wuhan. The Central Guidance Team has been sent to strengthen the epidemic prevention and control. We are helping to coordinate and solve key problems such as material allocation, medic deployment and technological support.

Third, we are conducting inspections to avoid inaction or irresponsible action by government officials. To deal with those who lack the courage or ability to take charge and fulfill their responsibilities, we urge relevant departments to investigate, rectify and deal with wrongdoings in accordance with the law and Party discipline. I think these are the three aspects in which we play our role and serve our function.

During the past 20 days or so, the Central Guidance Team, led by Vice Premier Sun Chunlan, has guided the prevention and control work in Hubei and Wuhan with a focus on three main tasks and two key areas. The three main tasks include: carrying out prevention and control work by containing the epidemic at the source and blocking the transmission route of the virus; treating patients with maximum efforts; and ensuring medical supplies for medical personnel. We have pushed ahead with all three main tasks since the beginning of the epidemic outbreak, changing priorities during different periods.

As for the two key areas, the first one is Wuhan, as everyone can see. This is a source of deep concern for all Chinese people as well as the international community. Therefore, we need to make Wuhan our top priority for the prevention and control work, effectively containing the spread of the epidemic in this city. The other key area, as we all know, covers other cities in Hubei province, which suffer from fewer medical resources and facilities than Wuhan. Given that, the result would have been unbearable if a more rampant outbreak had taken place in those regions. Therefore, we have coordinated the epidemic prevention and control work during the recent period in the rest of the province, in order to prevent the specter of another Wuhan event. In particular, we have stepped up efforts in the following aspects:

First, we have stepped up efforts to prevent and control the epidemic at its source. The Central Guidance Team in Hubei has made it clear that we need to cut off every possible method and channel to prevent the virus from spreading further. We all know that however hard we have tried to prevent and control the disease from spreading, and however much we have done to treat the patients, the least costly and most effective approach and the fundamental principle above all is to quarantine the source of the infections. While the epidemic has yet to develop to a severe extent, I am afraid that many people may become disgruntled about the decisions made to quarantine infectious groups, suspend public transport operations in Wuhan and block off all contacts between the epicenter and the rest of the country. In line with the instructions made by the CPC Central Committee and the State Council, Sun Chunlan, the vice premier who is leading the Central Guidance Team in Hubei, made two major work arrangements upon her arrival in Wuhan on Jan. 22, or the 28th day of the 12th month in the Chinese Lunar Calendar. One was to, in accordance with the general secretary's instruction, block off Wuhan's transport system — or what we refer to as launching the lockdown of the city — which was an important measure to prevent the continuous outflow of local residents, and the other was to extend the Spring Festival holiday. Around the third and fourth day of Spring Festival, the Central Guidance Team in Hubei, the CPC Hubei Provincial Committee, the Hubei provincial government, the CPC Wuhan Municipal Committee and the Wuhan municipal government proposed to continue separating the source of transmission and containing the spread of the disease after they had jointly launched a comprehensive study of the epidemic. The Hubei provincial government was also asked to weigh up the feasibility of extending the holidays even longer. Then, the extra 10-day holiday was granted to Wuhan by the State Council. Those non-locals who traveled to Wuhan to visit relatives or on holiday should follow the same policy to stay here in quarantine. The extended holidays helped fortify the achievements from blocking all exits from Wuhan and launching traffic controls in the preliminary stage of the outbreak. Following the instruction of General Secretary Xi Jinping, we have implemented these measures to curb the spread of the virus. In general, these measures have played effective roles in containing the epidemic at its source.

As I said, at such a critical moment when it seemed hard to reach a consensus, we still resolved to continue making each targeted measure count, thanks to the support of the CPC Central Committee. As such, we prefer to receive complaints than more infections. 

Second, we have worked all-out to ensure the supply of commodities and funds which have been in substantial demand. Mr. Lian will later speak on the issue too. On the day the Central Guidance Team arrived in Wuhan, we found that medical necessities, especially protective suits, were in serious demand and the shortage was impeding the rescue work. I remember the demand for protective suits hovered around 50,000 per day, which was much higher than the actual supply of about 10,000 either produced in Hubei province or allocated from outside of Hubei. Understanding that the rescue work could not continue without enough protective suits, Vice Premier Sun Chunlan followed the guidance of Premier Li Keqiang and proposed that supply be guaranteed in three aspects. First, by tapping the potential of Hubei's internal production. Second, by gaining support from all over the country. And third, by supplementing the supply with imports. The Central Guidance Team, headed by Vice Premier Sun Chunlan, called on a certain number of manufacturers to resume work and production as much as possible. Governments at all levels were also required to give those enterprises enough support to alleviate the temporary shortage. At that particular time, both the central and local authorities, including the National Development and Reform Commission and the Ministry of Industry and Information Technology, made huge efforts to assist the province.

Third, we have strengthened efforts to treat confirmed patients. According to the situation of the new confirmed cases in Wuhan, we can say that the epidemic there became a pandemic as of Jan. 27, as it developed from an epidemic in a single place, then to some areas, and finally into a large-scale outbreak over multiple areas. Local governments were confronted with huge challenges, as large numbers of patients could not be admitted to hospitals due to a severe shortage of hospital beds. We were very concerned about this situation. Against this backdrop, the Central Guidance Team in Hubei organized multiple forces to help Wuhan treat patients as quickly as possible. Eight medical teams were deployed to the city from across the country. We added the capacity of the Wuhan Union Hospital, Tongji Hospital and Renmin Hospital. We also built the Leishenshan and Huoshenshan hospitals to treat critically ill patients. Then, the treatment work was carried out in terms of different categories, levels and tiers. Our focus was on the management of patients confirmed or suspected to be infected with the virus, patients exhibiting fever, as well as close contacts of confirmed cases, as the treatment methods and quarantine measures for these four groups of people are different, and requirements also differ. In addition, we adopted integrated treatment of traditional Chinese medicine (TCM) and Western medicine, deploying some TCM experts to Wuhan to join the fight against the epidemic. Regarding this aspect, Ms. Yu will provide a detailed introduction later. 

The Central Guidance Team proposed the building of makeshift hospitals. Currently, a total of 11 makeshift hospitals and more than 400 quarantine sites have been built. Why did we build the makeshift hospitals? This was due to the severe shortage of hospital beds. People may ask that since there are a lot of hospitals with a large number of beds in Wuhan and Hubei province, why could patients not be admitted to existing hospitals? This is because the requirements for infectious disease hospitals are quite different from regular ones. An infectious disease hospital must have strictly segregated "three areas and two passages" (clean area, potentially polluted area and polluted area; medics' passage and patients' passage). That is why we built the makeshift hospitals, so that patients could receive treatment from top-notch doctors. 

We implemented the instructions made by General Secretary Xi, and stepped up our efforts to fight the outbreak as of Feb. 8 or 9. Some patients either confirmed or suspected to be infected with the virus could not be admitted to hospital due to a shortage of hospital beds. These patients must receive treatment as soon as possible, otherwise, they may become new sources of infection. After becoming aware of this situation, the Central Guidance Team asked local governments to conduct general screening for the entire population of Hubei province, and to ensure that no one was left unchecked, thereby allowing every single patient to receive treatment in hospital or makeshift hospital, and bringing their close contacts under isolated observation.

Fourth, we have carried out epidemiological investigations, tracing and researching on the source of the virus, modes of transmission and the transmission mechanisms, so as to make judgements of the trend of the epidemic.

Fifth, we have established a "four parties" accountability mechanism to ensure that all fulfill their responsibilities. This is necessary for public health management, as well as a requirement from the government during this special period. First, governments at all levels must ensure that there are enough hospitals and quarantine sites in their administrative areas. Second, all relevant authorities, such as the National Health Commission, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Education, should fulfill their responsibilities. Third, government agencies as well as small- and medium-sized companies, should be responsible for their employees. Fourth, every individual should fulfill their own social responsibilities, taking care of their own health and that of their family members.

Going forward, we will consolidate the temporary achievements in containing the epidemic, and continue to ensure more decisive measures are adopted in both Wuhan and across Hubei province. Cutting-off sources of transmission will remain our top priority. Moreover, we will ensure treatment for patients, and further strengthen the provision of medical supplies. We will step-up efforts to ensure that all measures are implemented, the admission and cure rates increase, and infection and morality rates decrease, so as to win the battle against the epidemic and protect Wuhan and Hubei.

ITAR-TASS:

Are there Russians or other foreigners among the people infected with COVID-19 in Hubei province? Does the Chinese government have confirmed figures? Can you tell us which countries they are from? What help has the Chinese government provided them? Thank you.

Ding Xiangyang:

Thank you for your question. In terms of foreign citizens who have been diagnosed or suspected of having COVID-19 in China, the Chinese government has informed the embassies and consulates of the relevant countries in China in accordance with relevant laws and regulations while respecting the will of the people involved. As far as I know, there are no cases of Russian citizens either being confirmed or suspected of having COVID-19 in China.

According to data from the Ministry of Foreign Affairs, as of 6 p.m. on Feb. 19, there were 29 foreign citizens infected with the virus in China, of which ten are in Hubei, while 18 have been cured and discharged from hospitals, two died, and nine are still in quarantine receiving treatment. I must inform you that the Chinese government attaches the utmost importance to the lives and safety of foreign citizens in China, and all foreign citizens infected with COVID-19 have been given equal, timely and effective treatment. Thank you.

China Daily:

As Wuhan has implemented stricter management, what is the overall plan to guarantee medical supplies? Thank you.

Lian Weiliang:

Thank you for your question. Guaranteeing medical supplies is the foundation in winning the battle against the epidemic. You may have noticed that yesterday General Secretary Xi Jinping once again gave an important instruction on protecting and caring for medical workers, and demanded ensuring the health of medical workers is maintained while they are dedicated to fighting the epidemic. The most important way to protect medical workers is to ensure medical supplies. 

As Mr. Ding just stated, the shortage of medical supplies was previously a prominent bottleneck that threatened the health of medical staff and affected the effective treatment of patients. Through joint efforts across the country, the shortage of medical supplies has improved greatly. Take for example N95 masks and protective suits which everyone is most concerned about: Yesterday, 336,000 N95 masks and 133,000 protective suits were supplied from various channels across the country to Hubei. What do these numbers mean? Well, they are equivalent to twice the previous national production capacity of such medical products. 

Things are still tightly balanced, which means, ensuring supplies by relying on daily scheduling. Many hospitals may only have enough stock for one day, but the protective supplies required by frontline medical workers and high-risk personnel can be guaranteed. Only a country like China could form such a large supply capacity in such a short amount of time, as it has the advantage of a system that can mobilize resources for major undertakings.

As the Wuhan government has implemented stricter management and control measures, the demands for medical supplies will increase significantly. As such, in terms of the overall plan for the next step, I can sum it up in four phrases. They are: increase the quantity, ensure the quality, guarantee what should be guaranteed, and handle special cases with special methods.

"Increase the quantity" means accelerating the release of new capacity, and continuing to work harder to mobilize and collect resources through various channels. In this way, the increase of medical supplies can meet the needs arising from increasing numbers of medical workers and hospital beds to receive more patients. 

"Ensure the quality" means effectively strengthening the monitoring of product quality, especially for products from enterprises which recently started production. We must strictly control the quality and ensure that all medical supplies are up to the standards and safe to use.

"Guarantee what should be guaranteed" means we should guarantee more supplies that are needed. In the early stage, the focus on guaranteeing supplies was on protective suits, N95 masks and goggles. But now, the needs for many disposable consumables such as hospital caps, gloves and long boot covers are also increasing rapidly, and shortage problems have begun to emerge. Considering the needs for treating patients, more and more hospitals will also add more medical equipment to their lists, such as ventilators, ECG monitors, blood gas analyzers, and mobile X-ray machines, which shall be included in the scope of guaranteed material supplies.

"We should handle special cases with special methods" means that as we are fighting a "general war and a sniping war," medical supplies must also be part of the wartime mechanism. We set the first goal as saving lives and the first principle as working rapidly. All medical supplies must be provided first, with procedures postponed in the fight against COVID-19. Thank you.

Macao Daily News:

A lot of online articles refer to the effect of traditional Chinese medicine (TCM) on COVID-19. Could you please introduce the current treatment effect of combined traditional Chinese and Western medicine? Thank you.

Yu Yanhong:

We are paying equal attention to TCM and Western medicine, and promoting mutual complementation and coordinated development of TCM and Western medicine, highlighting the advantages of China's medical and healthcare system. During the period treating patients with COVID-19, we allowed Chinese medicine to join during the early stage and insisted on combining TCM and Western medicine, which has achieved remarkable effects. Many clinical practices have confirmed that the effect of combining traditional Chinese and Western medicine in the treatment of COVID-19 has been positive and effective.

For mild cases, TCM can quickly improve symptoms such as fever, dry cough, sore throat, poor appetite and fatigue. It can shorten inpatient time and reduce the possibility of mild infections becoming more severe. For severe cases, in addition to improving the major symptoms and related indicators, it can also reduce the possibility of severe infections becoming critical, promote the transition from severe infections to mild, reduce the mortality rate, and increase the number of lymphocytes, which is a key index for prognosis of severe symptoms.

The National Administration of Traditional Chinese Medicine (NATCM), guided by clinical "emergency, practicality and effectiveness," launched an emergency program to speed up the clinical screening of effective prescriptions. According to the results of clinical observations, the NATCM and the National Health Commission jointly promoted the herbal concoction Qingfei Paidu Soup to the whole country. Clinical observations in 10 provinces have further proved that Qingfei Paidu Soup has a good effect in treatment, and it has been promoted as a general prescription in the sixth edition of the treatment and diagnosis plan" published by the National Health Commission.

The Ministry of Science and Technology has launched two major TCM programs. The team led by Academician Zhang Boli and Professor Liu Qingquan carried out a case-controlled study on 102 clinical cases in Wuhan. The study showed that the treatment of patients with mild symptoms using a combination of TCM and Western medicine can shorten the time with clinical symptoms by two days, the time of returning to normal body temperature by 1.7 days, and the average length of patients' hospital stay by 2.2 days. It can also enhance the recovery rate of CT images by 22 percent and clinical curing rate by 33 percent, decrease the general rate of transiting from normal symptoms to severe by 27.4 percent, and increase lymphocytes by 70 percent.

The clinical study by Academician Huang Luqi's team in Wuhan showed that the treatment of patients with severe symptoms using a combination of TCM and Western medicine can reduce the average hospitalization and length of negative nucleic acid by more than two days, significantly increase oxyhemoglobin saturation, shorten the time on relief from oxygen inhalation, and significantly improve such physicochemical indexes as the percentage of lymphocytes and lactic dehydrogenase.

Some cities and provinces have also insisted on using a combination of TCM and Western medicine such as Shanghai, Guangdong province and Zhejiang province, and achieved great effects. The results are inspiring.

Southern Metropolis Daily:

We know that the Central Guidance Team in Hubei have interviewed three people, including the vice mayor of Wuhan, on the issue of receiving patients. Regarding the issues exposed by the current epidemic prevention and control work, what measures have the Central Guidance Team in Hubei taken to urge Wuhan to strive to prevent and control the epidemic? Thank you.

Ding Xiangyang:

Thank you. The Central Guidance Team in Hubei is thoroughly implementing General Secretary Xi Jinping's important instructions regarding the guidance and supervision of the Central Guidance Team on epidemic prevention and control in Hubei province and Wuhan. The Central Guidance Team is taking various measures to effectively urge Wuhan to do the relevant work and implement the decisions and arrangements of the Communist Party of China Central Committee and State Council on epidemic prevention and control.

The first step was to supervise the work on the frontline. As the team leader, Vice Premier Sun Chunlan has repeatedly visited designated hospitals, Fangcang makeshift hospitals, quarantine spots, communities and rural areas. She urged local government officials in Wuhan to build up a real "wartime" command system. After investigation and coordination, we found that the previous command system in Wuhan needed to be promoted in a more positive way, and its efficiency also needed to be improved. If the system had been allowed to continue operating at a normal pace, it cannot be called a "wartime" one, and we can't use it to command this special medical battle so effectively. Therefore, Vice Premier Sun Chunlan asked local governments to improve their governance capacity, quality and efficiency.

Vice Premier Sun Chunlan has also supervised and directed the work of epidemic prevention and control in all districts of Wuhan through video conferences, urged local governments at all levels to fulfill their duties, and organized special groups to coordinate hospital bed allocations and other needs to leave no patients unattended. At the same time, all members of the Central Guidance Team in Hubei have fulfilled their duties in accordance with a clear division of labor. They went to communities, neighborhood committees, and relevant units of all districts in Wuhan to solve problems and difficulties in a timely fashion.

The second step was to admonish and expose several local officials who didn't perform their duties well. Just as you mentioned, we did admonish some officials both at municipal and district levels. In the early stages, during the process of receiving and treating "four types of people" and leaving no patients unattended, some officials failed to develop a clear picture of the epidemic situation, so that they can't treat patients timely or fulfill their responsibilities. There were even problems existing in transferring critical patients at some places, such as disorderly connection and organization, which provoked wide public dissatisfaction. We admonished several officials from Wuchang, Jianghan and Jiang'an districts and Wuhan municipal government, as well as leaders of the local health commissions in Wuhan city and Hubei province. In doing so, we wish to send a strong signal that we will punish any negligence and dereliction of duty. Also we urge all Party members and officials to work on a war footing, and truly give top priority to the safety and health of our people.

The third step was to verify and resolve the outstanding problems raised by the public. On the online supervision platform of the State Council and relevant social platforms, netizens and media friends have collected information about cases that have yet to receive treatment. Here, I would like to tell you that Vice Premier Sun Chunlan has required that every clue you found should be verified and every problem solved in regards to the epidemic control and prevention in Wuhan and Hubei. In addition, we also carried out secret investigations and supervision, in order to push local governments to correct mistakes earnestly, solve problems promptly, and apply lessons learned from experience to the future work.

The Kyunghyang Shinmun:

After the Central Guidance Team came to Hubei, Vice Premier Sun Chunlan vowed to win the war against the epidemic in Wuhan and Hubei. It was reported that due to lack of hospital beds, some patients could not be received and treated promptly. Among more than 60,000 confirmed COVID-19 cases in Hubei province, over 40,000 are located in Wuhan, so how many hospital beds are available now? How many patients are there in Wuhan? How many hospital beds can be guaranteed right now? Thank you.

Lian Weiliang:

Thank you for your question. There was indeed an insufficient amount of hospital beds at the early stage of the outbreak, therefore some patients were unable to gain access to timely treatment at the hospital and then there were some serious cross infections. This is distressing. The Central Guidance Team in Hubei has implemented the important instructions of General Secretary Xi Jinping, and in accordance with the requirements of Premier Li Keqiang and Vice Premier Sun Chunlan, has explicitly required the province to ensure that beds are sufficient and all patients are admitted and treated. The Central Guidance Team in Hubei is working together with provincial and municipal governments, day and night, to achieve the goal of providing sufficient beds. 

We came up with the measures of increasing the number of designated hospitals and temporary hospitals converted from gyms, convention or exhibition centers, as well as transforming qualified quarantine sites into places of treatment. We require 30,000 beds respectively in Wuhan's designated hospitals and temporary hospitals and 10,000 beds in quarantined places of treatment. Therefore, there will be a total of more than 70,000 beds that can be used to admit and treat patients. To support Hubei's medical treatment capacity building, Wuhan's in particular, the central government has allocated more than 700 million yuan ($99.6 million) of fiscal funds in three consecutive batches.

As of this morning, 30,000 designated hospital beds have been fully assigned to specific hospitals, of which 24,000 beds have been equipped with medical staff and are now qualified for treating patients. A total of 25,000 beds have been set up in temporary hospitals, of which 12,600 beds have been equipped with medical staff and are now qualified for treating patients. In addition, 4,000 beds are now available at quarantined places of treatment. To achieve the goal of providing sufficient beds we must make sure that there are always 3,000 to 4,000 beds available in designated and temporary hospitals to admit and treat patients at any time. 

In order to ensure that patients can be admitted to the hospital smoothly, we need to make efforts to ensure sufficient medical staff and supplies, as well as logistics services, so as to let patients be treated with peace of mind and medical staff be relieved of worries. Thank you.

China News Service:

With the upgrading of management and control, there is still some gaps in the implementation of some measures. For example, how can you strengthen the guarantee of supplies of basic living materials such as vegetables, rice and oil? Thank you.

Lian Weiliang:

Thank you for your question. The supply of living materials is guaranteed in general, particularly in terms of its total amount. However, as you mentioned, after stricter management and control measures were taken, we have had many difficulties in the distribution of living materials. Therefore, we need to take efficient measures to solve the problem under the premise of following the epidemic prevention and control arrangements. 

To efficiently stop the source of infection before it happens, the most important step is to reduce the flow of people. However, we have to rely on certain human resources and personnel flows to distribute living materials, so the key is to properly handle the relationship between the two. In the next step, we will focus on four aspects to guarantee the supply of living materials: increasing supplies, improving weak links, optimizing distribution, and finding solutions to individual cases. 

First, we must focus on increasing supply. Hubei is a major province for the production of grain, oil, meat, vegetables and fish. It can maintain adequate self-sufficiency and has satisfactory reserves of daily necessities. But even so, the country has arranged and prepared for the allocation of supplies from other localities. We have recently transferred 2000 tons of state-reserved meat to Wuhan, and also prepared 80,000 tons of rice, 80,000 metric tons of flour, 120,000 metric tons of edible oil, 36,000 metric tons of pork, 29,000 metric tons of vegetables, 2,900 metric tons of eggs, 12 million packages of instant noodles, 300 metric tons of ham sausage, 3,400 metric tons of chilled meat, and 1,000 metric tons of frozen food, ready to be transferred to Hubei whenever necessary.

Second, we must strengthen weak links. This includes efforts to address structural and regional supply shortages. For example, some regions had shortages of frozen meat and fresh vegetables, and people in some areas reported difficulties in purchasing milk powder. We have therefore taken effective measures in light of these circumstances and organized companies to increase supply in a timely manner.

Third, we must focus on improving delivery. We have worked on implementing three policies: "green channels" for transporting fresh agricultural products; "no stopping, no inspection and no charges" for vehicles transporting daily necessities; and targeted support for logistics companies. In addition, while strictly implementing epidemic prevention and control measures, we have organized logistics workers to resume work in an orderly manner to effectively address insufficiency in delivery services.

Fourth, we are addressing individual cases. The central guidance group for material support closely monitors the material supply and price fluctuations in the markets of Wuhan, Hubei province, and other localities every day. It pays attention to individual cases, reported by citizens, of supply shortages and price volatility, and works to verify and address them upon identifying.

The supply of daily necessities when fighting against the epidemic is certainly not as convenient as usual, which I believe people can also understand. Party committees and governments at all levels will continuously improve measures to ensure steady supply and prices.

Thank you.

Economic Herald:

Everyone is very concerned about the current epidemic situation. How can we increase the cure rate and reduce fatality rate? What role can traditional Chinese medicine play in this respect? Thank you.

Yu Yanhong:

The previous experience of treating the epidemic shows that the early intervention of traditional Chinese medicine (TCM) and the combination of traditional Chinese and western medicine are important methods to increase the cure rate and decrease the fatality rate. I will address the role of TCM in three aspects.

First, early intervention and treatment. For early intervention, TCM should be given to close contacts and susceptible groups to improve immunity and prevent and reduce infection. For early treatment, TCM treatment can be applied among people infected with COVID-19 in the early stage. Treating patients with mild symptoms can help control the increase of severe cases and increase the cure rate.

Second, the combination of traditional Chinese and western medicine. The consultation of Chinese and western medicine practitioners will be further promoted to draw on the strengths of TCM in diagnosis and treatment, as well as those of western medicine in antiviral treatment and respiratory support. This will consequently reduce complications and the fatality rate.

Third, classified treatments. Different treatment methods should be adopted for different stages of prevention, treatment and rehabilitation. The sixth edition of the national diagnosis and treatment plan is based on the efficacy of treating, observing, and optimizing guided by the previous versions. Medical staff should implement it well to achieve standardization and homogeneity.

In the next step, we will further implement and refine TCM and western medicine combination, continuously improve our treatment plan by combining TCM and western medicine, and make it play a greater role in medical treatment.

Xi Yanchun:

The last question.

People's Daily:

At present, except for Hubei, the number of newly diagnosed cases in other provinces is declining every day. Nonetheless, the current number of newly diagnosed cases in Wuhan and Hubei province is still very high. How do you see this? How should we view the epidemic situation in Hubei and Wuhan at this stage? Thank you.

Ding Xiangyang:

Under the overall arrangement of General Secretary Xi Jinping and the Central Committee of the Communist Party of China, the number of newly diagnosed cases in provinces other than Hubei has fallen for 16 consecutive days, which has increased confidence in the prevention and control of the epidemic in Wuhan and Hubei province.

There have also been some positive changes in the epidemic situation in both Wuhan and Hubei province. The epidemic prevention and control efforts have yielded positive results. Daily new confirmed and suspected cases have both dropped in Wuhan, down from over 4,000 people in mid-February to between 1,000 and 2,000 people. The number of suspected cases has also dropped from a peak of more than 18,000 in early February to about 2,000 now. In addition, our medical capabilities have also improved, and the number of discharged patients is rising steadily, reaching over 500 yesterday. Meanwhile, other cities in Hubei have also seen their number of confirmed and suspected infections decrease, dropping to double-digit or even single-digit growth. In general, the outbreaks in Wuhan and Hubei province have slowed compared with the previous explosive growth. As long as the prevention and control measures are in place, this downward trend will not change, and the number will gradually decline from the highest point in the previous period.

However, it is also necessary to understand that despite the positive results, challenges remain, including the large number of infections in Wuhan and Hubei province. In terms of medical treatment alone, the number of confirmed patients is large. There are over 30,000 patients currently being treated in Wuhan, including several thousand patients in severe or critical conditions. We are still facing great challenges in terms of medical treatment. The top priority at present is preventing mild cases from developing into severe or critical ones. The prevention and control measures must be deployed at the source. There is also great pressure on the provision of necessary resources. 

We must clench our teeth and fight the novel coronavirus with greater confidence, stronger determination and more resolute measures. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the Central Guidance Team will stick to our post and work to alleviate the hardships faced by Wuhan's residents as well as the whole country. We will not stop until we win the battle against the virus.

Xi Yanchun:

The State Council Information Office will also continue to hold press conferences in Wuhan, Hubei province. Thank you for your attention. Thank you also to our speakers and to all of you. Here we conclude today's conference.

.

Read in Chinese

Speakers:

Ren Hongbin, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC)

Peng Huagang, secretary-general and spokesperson of SASAC

Zhao Shitang, deputy secretary-general and spokesperson of SASAC

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

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

Feb. 18, 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 Mr. Ren Hongbin, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), Mr. Peng Huagang, secretary-general and spokesperson of SASAC, Mr. Zhao Shitang, deputy secretary-general and spokesperson of SASAC, and Mr. Xia Qingfeng, head of the SASAC Department of Publicity and spokesperson of SASAC. They will explain measures taken by centrally administered SOEs to support the fight against the COVID-19 epidemic. They will also take questions.

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

Ren Hongbin:

Ladies and gentlemen, good morning. First of all, I would like to express my gratitude to friends from the media for their long-term concern and support for centrally administered SOEs.

Since the COVID-19 outbreak began, the Party Committee of SASAC has firmly implemented important instructions given by General Secretary Xi Jinping and acted on decisions made by the Communist Party of China (CPC) Central Committee and the State Council. Currently, SASAC has placed top priority on epidemic prevention and control and is mobilizing all personnel and resources as a part of all-out efforts to guide centrally administered SOEs in curbing the outbreak. Following the call of the CPC Central Committee, centrally administered SOEs have become devoted to epidemic prevention and control on the front lines, regardless of cost and without any reservation. They play a central role as the "national team" in supporting the fight against the epidemic.

First, we are supporting epidemic control through comprehensively strengthening basic guarantees. Centrally administered SOEs in key industries and sectors such as petroleum, petrochemicals, power, telecommunications, grain and oil, and air transport are sparing no effort to guarantee the supply of basic products and services, playing a significant role in supporting epidemic control and ensuring the supply of daily necessities. Petrochemical enterprises have coordinated supply channels to transfer oil and gas resources to the most affected regions. Thousands of workers from those enterprises are striving to ensure non-stop service around the clock for consumers in Hubei Province. The State Grid Corporation of China (SGCC) has completed 163 key supplementary electricity supply projects in Hubei, and nearly 20,000 workers in power plants are fighting bravely on the front lines of epidemic prevention and control every day. Telecommunications enterprises have dispatched 14,437 vehicles for emergency missions and built 257 base stations to ensure smooth operation of the networks in Hubei. Centrally administered SOEs had pledged never to cut power or gas supplies or halt telecom service for clients in arrears during the outbreak. Airline companies have operated 159 charter flights to Hubei, delivering 875 tons of medical supplies and 17,840 medical workers to the province. Grain and oil enterprises are making all-out efforts to ensure goods supply. COFCO Corporation alone provides an average of more than 200 tons of rice to Wuhan each day. The inventory stock of the Hubei branch of China Grain Reserves Group can meet the demand of 60 million residents in the province for at least six months.

Second, we are supporting epidemic control through efficient construction of specialized hospitals. Centrally administered SOEs have undertaken the missions to design, construct and renovate more than 100 specialized hospitals around China. China IPPR International Engineering Co., Ltd., a subsidiary of China National Machinery Corporation (Sinomach), revised and improved the blueprint of Xiaotangshan Hospital as quickly as possible and provided technical support in a timely manner. China State Construction Engineering Corporation Ltd. (CSCEC) mobilized and organized more than 20,000 management and construction personnel to work day and night on the construction sites. Thanks to full support from enterprises in sectors like electricity, petroleum and telecommunications, Huoshenshan and Leishenshan hospitals in Wuhan were completed as scheduled. Moreover, 13 centrally administered SOEs have sent more than 500 medical workers from their hospitals to Hubei. In total, nearly 10,000 medical workers from hospitals under centrally administered SOEs are fighting the epidemic on the front lines. All medical institutions of centrally administered SOEs in Hubei have been designated as fever clinics or hospitals to handle suspected cases.

Third, we are supporting epidemic control through expanding and switching production to medical supplies. Although they were not originally involved in production of medical materials such as protective clothing and masks, centrally administered SOEs have overcome extreme difficulties to switch operations to manufacturing medical supplies and accelerate production like in wartime. Currently, Xinxing Cathay International Group produces 45,000 medical protective suits a day, and Sinomach, China Petrochemical Corporation (Sinopec) and China North Industries Corporation Ltd. (NORINCO Group) are together producing 1.3 million masks daily. Centrally administered SOEs have also stepped up R&D of key equipment that is urgently needed such as mask machines and plodders, which will begin mass production soon. While accelerating production of medical supplies, they have also strengthened the development of relevant medicine. China National Biotec Group (CNBG), a subsidiary of China National Pharmaceutical Group Corporation (Sinopharm), was first to successfully develop a nucleic acid test kit for the novel coronavirus. Now it can produce 200,000 such test kits a day. CNBG also proposed developing convalescent plasma to treat infected patients.

Fourth, we are supporting epidemic control by harnessing new technologies. Centrally administered SOEs are leveraging their advantages in science and technology and using new technologies such as big data, artificial intelligence, 5G and cloud computing to support epidemic prevention and control. Manufacturing enterprises have provided equipment like infrared temperature measuring instruments, mobile CT scanners, close contact detectors and medical robots for quick diagnosis and telemedicine. Construction enterprises have provided new materials for air filtration to key projects. Nuclear enterprises have provided protective gowns and mass radappertization service. Electronic and telecommunications enterprises are providing cloud classes, cloud training and cloud meeting systems to help people better study and work online.

Fifth, we are supporting epidemic control through making every effort to resume production. Curbing the COVID-19 outbreak is not only a fight against the virus but also a battle to defend the economy. On the premise of coordinating and guiding centrally administered SOEs in epidemic prevention and control, SASAC encourages them to resume work in a staggered fashion and in a safe, orderly manner as part of an effort to return to normal, steady development as soon as possible.

Moreover, centrally administered SOEs have donated a total of more than 2.5 billion yuan (about US$357 million) for epidemic prevention and control as well as large amounts of protective supplies like protective clothes, N95 respirators and disinfectants as well as daily necessities. They have also purchased a large amount of urgently needed medical supplies from overseas to support the fight against the epidemic.

Next, SASAC and centrally administered SOEs will firmly implement important instructions from General Secretary Xi Jinping to promote all work related to epidemic prevention and control. We will remain true to our original aspirations in the fight against the outbreak and pass the "tough test" by making all-out efforts to prevent and control the epidemic and maintain steady production and operation. Centrally administered SOEs will endeavor to win the people’s war against COVID-19 across the board, making greater contributions to epidemic prevention and control.

My colleagues and I are now ready to answer any of your questions.

Hu Kaihong:

Thank you, Mr. Ren! Next, we will open the floor for questions. Please identify your news outlet before asking questions.

China Media Group:

I would like to know how centrally administered SOEs have resumed production and operation so far. On the whole, how much impact does the epidemic have on the development and operation of these enterprises? Under the influence of the epidemic, will the production and operation goals and reform tasks of centrally administered SOEs set at the beginning of the year be adjusted? Thank you.

Ren Hongbin:

Thank you for your question. SASAC will not change the production and operation goals and reform tasks of centrally administered SOEs set at the beginning of the year. Regarding the resumption of production and operation, we believe that the resumption is an important guarantee to effectively curb the COVID-19 epidemic and maintain a stable economic operation. Under the guidance of SASAC, while guaranteeing their own epidemic prevention work, centrally administered SOEs resume production in an orderly manner according to their respective industries, making every effort to secure market supply and social stability in key sectors. According to preliminary statistics, over 80 percent of more than 20,000 major subsidiaries of centrally administered SOEs, which are mainly engaged in manufacturing, have resumed work. Those which do not resume production are because they still have no condition for production due to the severe epidemic situation. The work resumption rate for industries such as petroleum, petrochemicals, communications, power grid and transportation has exceeded 95 percent, and some sectors even have been in full run.

Here, what I want to particularly emphasize is that actually some enterprises have maintained operation throughout the Spring Festival holiday and the fight against the epidemic and never stopped their production, playing an important role in preventing and controlling the epidemic and maintaining economic stability.

As for the impact of the epidemic on the operation and development of centrally administered SOEs, I would like to introduce the following points:

First, the epidemic has indeed affected production and operation, and the impact on certain industries is relatively large. According to reports from centrally administered SOEs, because the epidemic broke out during the Spring Festival holiday, its impact in January was relatively controllable but becomes prominent in February. Due to the outbreak of the epidemic, aggregate demand of the whole society shrinks, resulting in immediate and severe impact on direct-to-consumer enterprises at the terminals of the industrial chain. For example, airlines are heavily affected by large-scale flight suspension and refunds during the Spring Festival peak season. From January 20 to February 13, three major airlines refunded 13 million tickets and cancelled 78,000 flights, with load factor and daily aircraft utilization rate dropping by nearly half. Usually, the Spring Festival holiday would see booming tourism and a peak time for airlines. A sharp drop in a peak season underlines the impact. Many tourist companies have shut down scenic spots, hotels and retail outlets, leading to great losses on their business. For example, China Tourism Group has closed 30 scenic areas, 19 hotels and 113 tourist retail stores as well as all cruise services. Overseas Chinese Town Co., Ltd. has shut down 74 scenic spots, seven amusement parks and ten travel agencies. We can see great impact on these companies.

Second, we believe that the impact of the epidemic is short-lived and temporary. General Secretary Xi Jinping said many times that China is a big country with great resilience, potential and leeway. The epidemic won’t change China’s economic momentum for growth in the long run. As for centrally administered SOEs, its impact mainly concentrates on the several sectors I just mentioned. We believe that as the epidemic is controlled and eventually eliminated, demand in these sectors will definitely rebound and gradually return to normal.

Third, we will stick to our goals with strong determination and confidence. You just asked whether we would change our goals and slow down our steps of reform. My answer is "no." SASAC alongside centrally administered SOEs will resolutely implement the goals and tasks set by the CPC Central Committee with Xi Jinping at its core. Sticking to our goals and tasks, we will spare no efforts to complete them even though with great pressure, providing strong support for the national economy to run smoothly. Certainly, it is a huge challenge to achieve our preset goals, which needs us to make greater efforts.

Specifically, we need to take the following measures: First of all, centrally administered SOEs should take the lead in resuming work and production, devoting full energy to maintaining stable production and operation. Second, we need to strengthen researching before make a judgment by analyzing the situation of industries and the value chain involving centrally administered SOEs and enforcing forecast and early warning so as to enact response measures in a timely manner. Third, we need to be ready for a tight budget by cutting cost and reducing expenditure as well as increasing work quality and efficiency in an effort to maximally offset the losses caused by the epidemic. Fourth, SASAC will guide enterprises in making full use of the favorable financial and tax policies launched by the state to combat the epidemic, seizing the possible opportunities brought by recovering market during the epidemic and after the end of the epidemic, and optimizing structure to stabilize production. Thank you.

Beijing Youth Daily:

Medical materials such as surgical masks and protective clothing are still in short supply. What have China’s centrally administered SOEs done in terms of production of key medical supplies? What plans have been formulated? Thank you.

Ren Hongbin:

Thank you for your question. Many of you must have recently learned from the media since the COVID-19 outbreak in Hubei started, the demand and supply of surgical masks and protective clothing has remained in a tight balance. Shortages have occurred in a few regions. This has become an important and urgent issue that needs to be addressed immediately and a shared concern to all the people across the country. During the past two weeks, at the request of the CPC Central Committee and the State Council, SASAC and centrally administered SOEs have focused on designated priorities and urgent tasks. We have taken active action to ensure important medical supplies are available.

First, we quickly required and facilitated qualified centrally administered SOEs in switching or expanding production of medical supplies. Before the COVID-19 outbreak, not a single centrally administered SOE produced medical masks or protective suits. As the shortages emerged after the outbreak of the epidemic, we quickly identified the centrally administered SOEs with the capability to produce medical masks and protective suits and launched active mobilization. These enterprises acted quickly and embraced the spirit of "when conditions area ideal, proceed; when conditions are lacking, fix them and then proceed," which was passed down from China’s first generation of oil workers. They soon switched or expanded production of medical supplies. Jihua Group Corporation Limited under Xinxing Cathay International Group is a prime example. Now, its employees are working in shifts around the clock and racing against time to produce medical supplies. Jihua Group normally produces military supplies including uniforms, bedding and clothing. After receiving the order to produce protective clothing, the corporation quickly purchased equipment, trained employees, and shifted its operations to protective suits like in wartime. Recently, I visited a factory affiliated to the corporation in Shijiazhuang City, Hebei Province. I was quite impressed to witness its workshop. Two production lines were running at full speed. One production line was producing winter clothing for the People’s Liberation Army (PLA), and the other was producing medical protective suits, creating a sharp contrast. Jihua Group usually doesn’t produce protective clothing. Thus, starting to produce medical supplies in an emergency was difficult for the corporation. Due to inadequate equipment, employees must pay close attention during the production process and work in shifts around the clock. They didn’t even get a break during the Spring Festival holiday. I was particularly moved when seeing a banner in the workshop, which reads "Let the Party flag fly high over the front line of protective suit production." Every worker seemed completely devoted to their duties. On February 5, Jihua Group could only produce 7,850 protective suits each day. By February 16, its supply capacity exceeded 45,000 suits per day. The latest data I just got this morning shows their daily output remains more than 45,000 suits. Its output now accounts for more than one third of the total production of medical protective suits in the country. Still, the corporation is working to further expand its daily production. Other qualified centrally administered SOEs are also working hard to produce protective clothing. On my way here, I learned that SUMEC Group Corporation, a subsidiary of Sinomach, also began to produce protective suits with output gradually increasing. Another Sinomach subsidiary, CHTC Jiahua Nonwoven Co., Ltd., which normally produces nonwoven fabrics, switched to medical mask production at top speed. As of February 13, the company had launched 11 mask production lines in succession, with a daily production capacity up to 1.1 million masks.

Second, by leveraging their industrial chain advantages, centrally administered SOEs and private enterprises have carried out extensive consultation, made joint contributions, and promoted production capacity expansion together during the difficult time. Friends from the media probably noticed a message on the internet recently: "We have melt-blown fabrics. Who has machines to make them into masks?" The message was from Sinopec. If not for the epidemic, people might never have associate Sinopec with mask production. Sinopec produced melt-blown fabrics, the basic raw material for masks and protective clothing. Polypropylene, a chemical produced by Sinopec and China National Petroleum Corporation (CNPC), serves as the raw material for producing melt-blown fabrics. So, when Sinopec learned of the mask shortage, it immediately began searching for downstream firms capable of producing masks through connections between upstream and downstream firms on the industrial chain. Now, 11 production lines for medical masks have been jointly established by Sinopec and downstream firms, with Sinopec providing the raw materials. By February 16, their total daily output had reached 620,000 masks. And this figure continues growing.

Third, centrally administered SOEs have gone all out to purchase medical supplies from overseas. The role of the three major national procurement platforms ― Sinopharm, China General Technology and China Resources Group ― has been brought into full play. Through these platforms, medical supplies including protective suits, masks, goggles, and gloves were purchased from suppliers both in China and abroad and handed over to the central government for unified allocation. At the same time, 26 centrally administered SOEs tapped into the strength of their overseas branches to increase their procurement of medical supplies abroad. So far, they have donated more than 1.74 million medical masks, 61,800 protective suits, 27,000 pairs of goggles and 348,000 pairs of medical gloves procured from overseas to Hubei Province.

Fourth,R&D of direly needed equipment such as mask machines and plodders has been accelerated. Since the COVID-19 outbreak, demand for protective suits and masks has soared, which caused a shortage of machines for production. To expand production capacity and output, we had to find the solution at the source. That means we need to produce mask machines as well as plodders, which are urgently needed for protective suit production. Sinomach, China General Technology, Aviation Industry Corporation of China, China State Shipbuilding Corporation, and NORINCO Group began performing R&D and production at full speed. Sinomach’s production facilities for masks are expected to reach mass production by the end of February. I received the news yesterday that the first batch of prototypes had been successfully developed. At the same time, preparations for R&D and production of plodders and machines to produce N95 respirators have also begun. Manufacturing will begin as soon as possible to solve the shortage of mask machines and plodders. Thank you.

Market News International:

How many SOEs have received low-interest loans? Some local state-owned assets supervision and administration commissions have encouraged SOEs to support each other in financing activities such as loans and guarantees. Could you please provide more information on this issue?

Xia Qingfeng:

During the fight against the epidemic, we have worked hard to capture a complete picture of the policies issued by local state-owned assets supervision and administration commissions. At present, more than 20 local commissions have issued policies to support and guide SOEs in fighting the epidemic. These policies cover areas including performance evaluation, budget management and investment management. We combed these policies and realized that a few local commissions had indeed formulated policies to encourage SOEs to strengthen cooperation in financing, which has played a positive role in curbing the impact of the epidemic. We have carefully studied these financing policies. Financing guarantees are common business practice in enterprise operation and development. Relevant decision-making and approval processes are also clearly stipulated in rules and regulations concerning state-owned assets supervision and administration. When enterprises face difficulties in operation and financing due to the epidemic, local state-owned assets supervision and administration commissions will guide their recovery in accordance with laws and regulations.

Today, the fight against the epidemic calls on people from all walks of life, regardless of age, gender or place of residence, and all enterprises, regardless of ownership, to join. We are all suffering the same storm and working together to overcome the difficult time. Relevant government departments have introduced a series of fiscal, taxation and financial policies including the low-interest loans you mentioned to further reduce enterprises’ production, operation and financing costs and better guarantee epidemic prevention supplies and medical supplies. These policies are for all enterprises — none targets only SOEs. The prevention and control of the COVID-19 outbreak is currently at a crucial stage. Qualified SOEs should apply for financial support through open channels in accordance with relevant rules and regulations. No one will get privileged treatment.

We also noticed that some new policies are designed to specifically support small and medium-sized enterprises (SMEs) such as a 20-clause document issued by China’s Ministry of Industry and Information Technology. SMEs are more vulnerable to the epidemic. It is understandable that we should support and help them. Centrally administered SOEs will take the lead in actively implementing relevant policies in realms like industrial chain cooperation. Thank you.

Peng Huagang:

I have something to add. Your question also touched upon the cooperation among enterprises. The epidemic has caused difficulties for all enterprises in terms of production and operation. And it is the very time for us to work together to get through the crisis. As we mentioned just now, there are some cooperation among SOEs. But more importantly, in the process of implementing national supportive policies for SMEs, centrally administered SOEs have done a lot of work to promote cooperation through the industrial chain, especially in terms of guaranteeing basic supply.

First, as for basic supply guarantee, as Mr. Ren just mentioned, centrally administered SOEs in the fields of power, gas and communications have continued to ensure the supply of non-stop energy and telecommunications service to SMEs in arrears. In addition to aforesaid measures, some centrally administered SOEs have even launched specific preferential policies targeting companies through the industrial chain. For example, China Telecom has introduced 20 assistance measures for channel agents and terminal vendors to help its partners resume production and operation as soon as possible.

Second, we have actively enhanced business support. Centrally administered SOEs often stay at the critical link of the whole industrial chain, so their resumption of work and production, to some extent, will drive enterprises in both the upper and lower reaches of the industrial chain to resume operation and production. For example, SGCC has resumed a batch of large construction projects totaling 70 billion yuan (about US$10.01 billion), which are expected to motivate both upstream and downstream industries to resume work and production better and sooner.

Third, centrally administered SOEs have actively helped other enterprises overcome difficulty in cash flow. For example, the Optics Valley industrial park under China Electronics Corporation (CEC) reduces part of the rents and service fees for the property company owned by the industrial park along with micro, small and medium enterprises. The reduced fees are expected to exceed 20 million yuan (about US$2.86 million). At the same time, CEC strengthens financial support for micro, small and medium enterprises in the industrial park. Centrally administered SOEs like China Resources Group, China Poly Group Corporation Ltd. and China Merchants Group have reduced rents of their shopping malls and commercial entities during the Spring Festival period. The rent cut by CR Vanguard alone has reached 130 million yuan (about US$18.59 million), benefiting 14,000 commercial tenants. The Sanya International Duty-Free Shopping Complex under China Tourism Group has exempted all the rents and property fees of its tenants until the shopping complex formally resumes business, as part of the effort to help vendors overcome the short-term business difficulties.

Another important aspect is to properly handle legal disputes with SMEs. The epidemic has led some SMEs to delay delivery of their orders and payments. SASAC encourages centrally administered SOEs to strengthen communication with such enterprises in a timely and proactive manner based on the principles of overcoming difficulty together and friendly consultations. In accordance with laws and regulations, we will seek to solve the difficulties and problems of SMEs by allowing them to delay the performance of contractual obligations or modifying some contract terms, trying our best to help them reduce losses or avoid the expansion of losses. At the same time, we will jointly explore countermeasures, plan long-term cooperation, and strive to make due contributions to maintaining the stable operation of the economy. Thank you.

CRNTT:

Research and development of drugs and vaccines for COVID-19 is tremendously important to epidemic prevention and control and has attracted wide attention. How will SASAC coordinate centrally administered medical SOEs on strengthening the research and development of vaccines and drugs? Thank you.

Zhao Shitang:

Thank you for your question. Some centrally administered SOEs including Sinopharm, China Resources Group and China General Technology are now robustly expanding research of effective drugs to treat COVID-19 in accordance with relevant work deployments, and promising progress has already been made.

First, as Mr. Ren just mentioned, CNBG, a subsidiary of Sinopharm, has successfully developed nucleic acid test kits, which were quickly provided to the National Center for Disease Control and Prevention, Hubei Provincial Center for Disease Control and Prevention, and other provincial and municipal disease control and prevention centers to conduct frontline virus detection tests. Over a million packs have already been produced, and they have played a very important role in infection screening and virus detection and isolation.

Second, after conducting in-depth research and rigorous tests, CNBG introduced a therapy for severely ill patients involving introducing plasma from recovered patients. The Ministry of Science and Technology quickly approved the project, and thanks to strong support from the National Health Commission, the therapy has been successfully used to treat 10 severely ill patients. So far, the outcomes have been promising.

Third, vaccine research and development work has been accelerated in Wuhan, Beijing and other places. Virus cultivation for an inactivated vaccine is already underway. Development of a genetically engineered vaccine for the virus has already completed the gene sequence synthesis, and other relevant work is also progressing.

Fourth, China Meheco Co., Ltd., a subsidiary of China General Technology, has increased efforts to resume production of chloroquine phosphate, an antimalarial drug that has shown certain curative effects for COVID-19, to ensure market supply.

In general, SASAC and centrally administered medical SOEs have established a set of coordination mechanisms. Next, under the leadership of the Joint Prevention and Control Mechanism of the State Council, SASAC will continue to support and urge relevant enterprises to improve development and production efforts for effective drugs and vaccines as it ensures devotion of the full strength of state-owned enterprises to the people’s war against the epidemic across the board. Thank you.

CNBC:

I have two questions. Have centrally administered SOEs provided any support for keeping the employment market and salary levels stable? Will SASAC take new measures to help private enterprises? Thank you.

Xia Qingfeng:

Let me first answer the question about employment. Since most centrally administered SOEs had already started recruiting 2020 college graduates before the Chinese New Year, many will not be affected much by the outbreak of the epidemic in that realm. Companies that need to carry out or continue recruiting in springtime will follow relevant regulations on epidemic prevention and control, and take active countermeasures according to real conditions to ensure smooth progress of recruitment work. We have already seen some positive developments in this area. For example, China Communication Construction Group introduced an online recruitment system, and China International Intellectech Co., Ltd. (CIIC), a state-owned company specializing in human resources services, started providing free remote video interviews as needed.

SASAC will pay close attention to the progress of centrally administered SOEs in recruiting college graduates. Following preset employment arrangements, we will actively promote follow-up work with relevant departments by all means, so as to make contributions to stabilizing employment.

On the question about support for SMEs, I don’t have anything to add to what Mr. Peng Huagang has already outlined. Thank you.

CNS:

You just explained that centrally administered SOEs are providing many basic guarantees for epidemic prevention and control. Could you please describe some specific measures taken by relevant industries? Thank you.

Ren Hongbin:

Thank you for your question. When an epidemic breaks out, a command is issued. It is our responsibility to prevent and control it. As soon as the CPC Central Committee and the State Council made arrangements for the prevention and control of the epidemic, the Party Committee of SASAC immediately made relevant deployments and mobilized basic public supply enterprises to organize production in an orderly manner. We ensure non-stop oil, gas, power and heat supplies and keep telecommunications service available while avoiding price surges. Relevant enterprises quickly activated the emergency response mechanism and began making all-out efforts to ensure the supply of basic guarantees. This effort has played an important role at a critical moment and reflected the sense of responsibility of the "national team."

In terms of oil and gas supply, major petroleum and petrochemical enterprises coordinated supply channels and quickly allotted oil and gas resources to provide 24-hour non-stop service for Hubei consumers, ensuring a stable supply of energy in the province.

In terms of power supply, major electricity enterprises have maintained high-level operation. Currently, nearly 20,000 workers from those enterprises are fighting the epidemic on the front lines in Hubei by providing power supply, technical and maintenance support, emergency power vehicles and generators for fever clinics at designated hospitals and enterprises producing epidemic prevention materials. SGCC has adopted measures such as "never cutting power supply for clients in arrears" on the front lines of epidemic prevention and control to ensure no power supply problems impede the fight against the epidemic.

In terms of telecommunications service, major telecommunications enterprises adopted special measures to avoid or delay service shutoff for users with overdue bills. In addition, they dispatched tens of thousands of emergency support personnel to ensure the smooth operation of base stations in Hubei Province. Various resources have been coordinated to fully support construction of key anti-epidemic projects. For instance, China Telecom successfully built a 5G remote telemedicine system linking Chinese PLA General Hospital to Huoshenshan Hospital in Wuhan in only 12 hours. China Unicom and China Mobile have also launched 5G intelligent medical service platforms to assist medical staff make shift handovers safely and conveniently and facilitate mobile medical ward rounds and remote meetings.

In terms of transportation, airline companies have operated a total of 159 charter flights to Hubei and more will be sent soon. This helped transport 875.3 tons of epidemic prevention materials and 17,840 medical workers. For example, on January 24, Chinese New Year’s Eve, after receiving its first mission of charter flight to Wuhan, China Eastern Airlines completed emergency coordination in only half an hour and safely transported 136 medical workers from Shanghai to Wuhan.

In terms of daily necessities supply, major grain and oil enterprises such as COFCO Corporation, China Grain Reserves Group and China Resources Group have made every effort to ensure sufficient and stable supply of food products in Hubei including rice, flour, edible oil, sugar, meat and milk. They are also working to ensure that prices do not rise, quality does not fall, and supply does not stop during the epidemic, playing an important role in maintaining market stability.

As I mentioned, the grain stored at the Hubei branch of China Grain Reserves Group could meet the demand of more than 60 million people in Hubei for at least six months. At present, centrally administered SOEs responsible for basic guarantees have taken active measures and made all-out efforts to ensure material supplies in Wuhan and other places in Hubei Province. Thank you.

Economic Herald:

The COVID-19 epidemic has affected international flights and personnel exchange. It appears that some countries have recently introduced measures concerning China. Will these measures influence the overseas investment and trade of China’s centrally administered SOEs, including overseas projects related to the Belt and Road Initiative? Some foreign media and citizens worry that the movement of people may result in further spread of the epidemic. What measures have centrally administered SOEs taken to ensure smooth progress on overseas projects? Thank you.

Peng Huagang:

Thank you for the questions. Measures to prevent and control the epidemic have indeed created certain difficulties for overseas projects and investment. While guiding centrally administered SOEs in preventing and controlling the epidemic and resuming their operations in China, SASAC has also actively pushed forward continued construction of overseas projects through a series of targeted measures, including addressing deployment of personnel overseas.

First, we actively communicate with foreign enterprises, proprietors and local governments to win their support and understanding. While guaranteeing safety, we will promote continued construction of overseas projects. For example, CNPC sent a letter to its overseas partners to publicize China’s efforts and progress in epidemic prevention and control to avoid misunderstandings.

Second, we further optimize and streamline construction procedures and agendas. For projects just starting construction, centrally administered SOEs have managed to finish many jobs within China to ensure that construction will proceed more quickly after the epidemic ends.

Third, we actively leverage the advantages of local and third-party resources. Many overseas projects managed by centrally administered SOEs employ local and international personnel. In such conditions, we must ensure that local and international employees play greater roles and that overseas projects in various countries proceed in an orderly manner through rational allocation of resources.

Fourth, we actively use modern communications technologies such as telecommuting between China and abroad to address personnel shortages.

We believe that appropriate measures will help centrally administered SOEs overcome difficulties and guarantee smooth operation of overseas projects.

On your second question about protecting overseas employees from the epidemic, when SASAC became aware of the potential risk earlier, it issued an urgent notice to centrally administered SOEs on January 30 requiring measures for epidemic prevention and control including inspecting the health conditions of personnel sent abroad. Centrally administered SOEs have adopted several measures: First, headquarters of centrally administered SOEs are required to make overall arrangements on the number of personnel sent overseas and to acquire prior permissions from the embassies and consulates of foreign countries. Many overseas projects involve centrally administered SOEs. In the past, personnel dispatched to work overseas were usually arranged by subsidiaries and branches. In the current situation, however, central headquarters should coordinate arrangements. Second, they are conducting strict health checks on not only personnel going overseas, but also their family members to ensure the epidemic is not taken abroad. Third, stricter quarantine measures have been adopted. State Power Investment Corporation, for instance, isolates the personnel to be dispatched for 14 days in China and then another 14 days upon their arrival in the host countries before they begin work, with an aim of guaranteeing complete safety. The fourth measure is to strengthen monitoring of the health of dispatched personnel through tracking their daily movements and physical conditions to ensure any problems are identified and addressed quickly, so as to guarantee their safety. Thank you.

Hu Kaihong:

Due to limited time, we can take one more question.

21^st Century Business Herald:

I have several questions for Mr. Ren. I understand that centrally administered SOEs have made great efforts to produce masks and other medical supplies which are in high demand. At the same time, their normal operations must have been affected. Do we have any statistics on the losses of centrally administered SOEs so far? How can the losses be made up in the second half of the year or across a longer period? To make up for these losses, the government has introduced some tax and financial subsidy policies. Do you believe these policies are enough to cover the losses of centrally administered SOEs and fully fuel the recovery of China’s economy? What assistance policies and measures will be taken to accelerate the economic rebound in the future? Finally, you mentioned that the impact of the epidemic on airline companies, especially China’s three major airlines, has been severe given the high refund rate, which imposed heavy pressure on their cash flow. Can such centrally administered SOEs see any opportunities created by the situation? Does navigating a crisis create an opportunity for reorganization? Many players in the aviation industry may not be able to withstand this blow. Does that make it an opportunity for reorganization? Thank you.

Ren Hongbin:

You present many questions across a wide range of issues. The epidemic has been a blow to many centrally administered SOEs, bringing many unexpected difficulties and challenges for their operations. As I mentioned, we have adopted a slew of measures to deal with the challenges brought by the epidemic, one of which is encouraging enterprises to fully unleash their potential by reducing costs and increasing efficiency to make their operations increasingly economical to minimize losses. The exact amount of losses cannot be accurately calculated yet. I am sorry that I cannot provide a precise figure at this time.

Since the outbreak, the Chinese government has implemented many policies offering financial support and tax deductions, not only for centrally administered SOEs, but also for other types of enterprises. Particularly, some policies have been recently enacted to give SMEs more support. We also support those efforts. As my colleagues have explained from different angles, as the economy faces challenges and the situation of the epidemic becomes increasingly complicated, we are taking active action to support the development of SMEs and encourage enterprises to huddle together against the economic chill brought by the outbreak and achieve coordinated development.

Do the circumstances create an opportunity for reorganization of aviation companies? I think that the will of relevant enterprises should be respected. They should make their own decisions in light of the needs of their development strategies and the law of industrial development. SASAC will continue to offer companies normal support for restructuring endeavors. Right now, airline companies are focusing on helping fight the epidemic and organizing charter flights.

Last but not the least, on behalf of all staff of SASAC and centrally administered SOEs, I would like to pay the highest tribute to medical workers fighting on the front lines in Hubei Province. They are caring for patients like family and safeguarding the health of the people. They are among the most respectable persons of the new era. Centrally administered SOEs will continue to firmly implement the decisions made by the CPC Central Committee and the State Council, resolutely play a key role as the "national team," and always offer strong support to medical workers on the front lines. We will continue to support them during the race against time and the disease as we win the people’s war against the epidemic together. Thank you all.

Hu Kaihong:

The press conference is hereby concluded. Thanks to the four speakers. Thank you all.

.

Read in Chinese

Speakers:

Wang Hesheng, vice minister of the National Health Commission (NHC), member of the Leading Party Members' Group of the NHC, and member of the Standing Committee of the CPC Hubei Provincial Committee

Liang Wannian, head of the NHC expert team for the epidemic response

Chang Jile, director of the Bureau of Disease Prevention and Control, NHC

Jiao Yahui, deputy director of the Bureau of Medical Administration, NHC

Chairperson:

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

Date:

Feb. 15, 2020

Xi Yanchun:

Friends from the media, good morning. Welcome to the press conference. Hubei, especially the provincial capital Wuhan, is the top priority for the prevention and control of the COVID-19 (also known as novel coronavirus pneumonia) epidemic, and the decisive region for seeking to defeat the virus. Today, the State Council Information Office is holding a press conference at the frontline of the battle in Wuhan to introduce the latest information on epidemic control and medical rescue in Hubei province. We have invited Mr. Wang Hesheng, vice minister of the National Health Commission (NHC), member of the Leading Party Members' Group of the NHC, and member of the Standing Committee of the Communist Party of China (CPC) Hubei Provincial Committee. Also present at the press conference are Mr. Liang Wannian, head of the NHC expert team for the epidemic response; Mr. Chang Jile, director of the Bureau of Disease Prevention and Control, NHC; and Ms. Jiao Yahui, deputy director of the Bureau of Medical Administration, NHC. First, I will give the floor to Mr. Wang.

Wang Hesheng:

Friends from the media, good morning. The COVID-19 epidemic has become a shared concern to all Party members and all the people of our country. The CPC Central Committee and the State Council have given earnest consideration to the situation. General Secretary Xi Jinping has called multiple meetings, making overall arrangements for the prevention and control work. During his inspection in Beijing on Feb. 10, General Secretary Xi talked to frontline medical workers at hospitals receiving severe cases in Wuhan, including Jinyintan Hospital, Union Hospital and Huoshenshan Hospital, using a telemedicine system. He extended regards to medical staff across the country, and called on us to give top priority to people's safety and health, save patients at all costs, increase the admission and recovery rates, as well as reducing the infection and fatality rates. General Secretary Xi's words pointed out the direction for the epidemic prevention and control work, especially in regard to medical rescue.

Since the outbreak of the pneumonia, China's health system has focused strongly on epidemic control and medical rescue. The NHC moved swiftly, submitting a proposal to the State Council to classify the outbreak as a category-B infectious disease, and take preventive and control measures on the level of a category-A infectious disease. The NHC released information on the COVID-19 outbreak as well as the prevention and control measures in a timely manner. We put forward and implemented the prevention and control strategies of "four early" (screening, reporting, quarantine and treatment at early stage) and "four concentration" (concentration of patients, experts, resources and treatment). Plans such as case diagnosis and treatment, emergency monitoring, epidemiological investigation are formulated and optimized. We immediately speeded up scientific research, quickly identified the pathogen of COVID-2019, and optimized the testing kits. All provinces have quickly set up joint prevention and control mechanisms. In accordance with the principle of territorial management, emergency response has been launched and the grid management of epidemic prevention and control has been strengthened in urban and rural areas. Local communities work to ensure preventive and control measures are effectively implemented. In accordance with the requirements of "non-proliferation within the city and non-export beyond the city," traffic restrictions were imposed on Wuhan and its links to surrounding areas. Tough measures, such as close contacts being quarantined, have been carried out and medical staff have spared no efforts to achieve patient recovery. Answering the call of the central government, health departments in various places sent preeminent medical workers to form rescue teams to support Hubei province. They also carried medical equipment and protective supplies such as ventilator, ECG monitor and ECMO.

Wang Hesheng:

As of 24:00 on Feb. 14, a total of 217 medical teams and 25,633 medical staff had been sent from various places, not including those provided by the military. Adding to that, three mobile BSL3 labs were also mobilized. There are now 181 medical teams and 20,374 medical workers in Wuhan. In other cities of Hubei province, there are 36 medical teams and 5,259 medical workers. The number of medical rescue teams and the speed of mobilizing medical resources all surpass those involved in the 2008 Wenchuan earthquake. The central government also arranged 19 provinces to support different cities of Hubei province, known as "one province helps one city." The relevant provinces gave full support to the aided cities and prefectures. Adhering to the lofty spirit of "respecting lives, rescuing patients, complete dedication, selfless love," the medical staff bravely fights at the forefront of the battle against the epidemic. They made every effort to protect the people's lives and health. With unremitting efforts and strong measures of prevention and control, the peak of the coronavirus was dragged lower, and by doing so, we won time for curbing the spreading of the epidemic.

The prevention and control of the novel coronavirus (COVID-19) outbreak is currently at its most crucial stage. Wuhan, capital of Hubei province, remains the main battlefield. Medical treatment is being carried out in accordance with the general requirements of having full confidence and relying on concerted efforts, scientific containment and targeted measures. We will continue to give top priority to improving the rate of patients received and nursed to full recovery, and reducing rate of infection and mortality, and strive to win the battle against the virus in Wuhan and Hubei with all our strength.

As for reducing the infection rate, the entire province of Hubei, especially Wuhan, should enact and implement prevention and control measures in line with actual conditions. We have strictly implemented the measures of "early detection, early reporting, early quarantine and early treatment", and effectively carried out the classification and centralized management of confirmed patients, suspected patinets, fever patients with pneumonia symptoms and those who have had close contact with them. We have promoted the prevention and control at the community level, encouraging communities to shoulder their due responsibilities and carry out targeted management, and giving full play to the grassroots forces to make the communities serve as strong fortress against the epidemic in order to prevent the specter of another Wuhan. As for improving patient admission rate, we have carried out different measures according to different situations: all confirmed severely ill patients, including those clinically diagnosed, must be concentrated in designated hospitals for treatment, patients with mild symptoms must be isolated and treated in the temporary "cabin hospitals," and those suspected patients with mild symptoms must be observed and treated in isolated locations. We have converted a number of gymnasiums, exhibition centers and training centers into "cabin hospitals" and isolation centers for treatment. We will continue to improve equipment and facilities and strengthen service management so as to ensure security and good order in those places. At present, nine such cabin hospitals are operating, with more than 6,960 beds, and 5,606 patients receiving treatment there.

Wang Hesheng:

In the next stage, if needed, we will continue to transform some hospital wards and venues into designated hospitals and temporary hospitals, to make sure the confirmed and suspected patients can receive centralized treatment and no patients are left unattended.

Regarding improving the survival rate and reducing the mortality rate, we have coordinated the medical teams dispatched by the central authority and by provincial regions, as well as medical resources in Hubei, and adopted unified treatment standards, work processes and technical specifications in order to improve the level of medical treatment. We have adopted such a model as overall takeover, with assisting medics from the same provincial region or the same hospital taking charge of one specific department. In this way, critically ill patients can receive centralized treatment, and the advantages of medical experts can be given full play. We have implemented a multidisciplinary consultation system for difficult cases and a discussion system for death cases in order to improve and promote treatment plans. We will tap the potential of the mixed therapy methods of traditional Chinese medicine and its Western counterpart, using TCM for treatment as soon as possible. At the same time, we will strengthen the efforts to prevent infections happening inside the hospital and enhance the protection of medical staff themselves.

Media friends, protecting the people's health is the mission of medical workers. We will resolutely implement the decisions and deployment of the CPC Central Committee and the State Council, take all possible measures to improve the rate of patients received and recovered and reduce the rate of infection and mortality, making our due contribution to the "people's war" against pneumonia epidemic caused by COVID-19. Thank you.

Xi Yanchun:

Thank you Mr. Wang Hesheng. The floor is now open for questions. Please ask questions via the video link and identify your news outlet before asking questions.

CCTV:

It was mentioned at the press conference that more than 200 medical teams, both national and local, have assembled in Hubei province at present, totaling more than 20,000 personnel. How do these teams carry out their work? What kind of work has been undertaken at the national level in terms of organizing medical teams to help Hubei? What results have been achieved so far? Thank you.

Wang Hesheng:

In order to effectively respond to the epidemic situation in Hubei province, especially in Wuhan city, in accordance with the arrangements of the CPC Central Committee and the State Council, we quickly seconded medical experts and backbone forces of national level from 29 provinces, autonomous regions, municipalities across the country and the Xinjiang Production and Construction Corps, and hospitals affiliated to the National Health Commission. By organizing them into a number of echelons of different levels, we are ready to support Hubei. These medical teams rushed to Hubei in batches starting from Jan. 24. Despite their own local heavy burden of medical care, the cities and provinces have responded well and reached out their hands, dispatching their medical staff to Wuhan and other cities in Hubei province selflessly and generously. Medical personnel from all over the country have applied to support Hubei on their own initiative, carrying forward the lofty professional spirit of "respect lives, save lives, be willing to contribute with boundless love." In this battle without the smoke of gunpowder, they neither complained nor bowed before difficulties. These ordinary people are extraordinary. Here I would like to pay high tribute to the Party committees and governments of all levels, medical institutions, and medical staff who gave their support to Hubei and Wuhan, as well as the medical staff who stuck to their jobs in Wuhan and other cities in Hubei. Thank you all.

Wang Hesheng:

As of now, we have mobilized 217 medical teams to Hubei province, with a total number of more than 25,000 medics. After the teams arrived in Wuhan, they were placed under the unified deployment and arrangement of local health commissions and hospitals to participate in the treatment of patients infected with the novel coronavirus. The frontline team of the National Health Commission has organized training with regard to the treatment, management and personal protection for the medics, and also guided the teams to set up a temporary Party branch at the front line to better strengthen team coordination.

For other cities in Hubei province, we have also adopted the policy of "pairing-up support for Hubei." Provincial-level regions across the country have paired up with various cities across Hubei. They have teamed up with local medics to support the treatment of patients, which helped ease the pressure on the latter and enable them to have a reasonable shift arrangement. All those in the frontline will get some time to rest, and thus be able to work better. And we have also organized Peking Union Medical College Hospital, Beijing Hospital, China-Japan Friendship Hospital and other affiliated hospitals of Peking University to contribute their expertise. The whole team of many experts from the major hospitals is led by the president and Party committee secretary of the hospitals. As the key leaders, they will oversee the treatment of severe cases in the designated hospitals in Hubei province. In addition, these experts are well-known specialists able to provide very professional guidance to the frontline teams. This also showcases advantages of our political system. The people in Hubei province believed that the medical teams sent by General Secretary Xi Jinping and the great support from people across China will help us to win the battle against the COVID-19.

The Asahi Shimbun:

First of all, I would like to send my deepest condolences to those who lost their lives due to the COVID-19. I also sincerely hope that those infected could soon recover. People in Japan are supporting Wuhan and Hubei. My question is: How do you think the epidemic is going in Hubei and Wuhan? As the prevention and control of COVID-19 outbreak is currently at its most critical stage, are there any more effective measures taken to contain this epidemic? Thank you.

Wang Hesheng:

Thank you for your question. Let's give the floor to Mr. Liang Wannian.

Liang Wannian:

As for the current status of the epidemic, the daily new confirmed COVID-19 cases outside Wuhan fell from nearly 900 on Feb. 3 to less than 300 on Feb. 13, declining for 10 consecutive days. The daily new confirmed cases in Shanxi, Inner Mongolia, Jilin, Tibet, Gansu, Qinghai, Xinjiang, and Xinjiang Production and Construction Corps were less than five for three consecutive days. This is a good sign. As for the situation in Wuhan, we saw the big number of daily new emerging cases from Jan. 23 to Feb. 1, and the figure has shown a downward trend since Feb. 1. However, the situation is still tough for other cities in Hubei, such as Xiaogan and Huanggang, and the number of daily new emerging cases there is still increasing rapidly. The infection due to family reunion and imported cases is still occurring frequently, and infections in neighborhoods are still common in urban areas. Nevertheless, generally speaking, the spread of COVID-19 in these areas is slow, and infections in neighborhoods and local outbreak is comparatively rare. COVID-19 cases in other places such as Enshi and Shennongjia are still attributed to imported cases, and the risk of spread is relatively low.

Liang Wannian:

As the epidemic prevention and control work in Wuhan comes to the most critical moment, we must continue to make it our top priority. In accordance with the principle of "firm confidence, solidarity, scientific prevention and control, and precise measures", we must focus on the prevention of the epidemic and treatment of patients, make overall plans and take various factors into consideration in the joint prevention and control of the epidemic. Meanwhile, we have to undertake classified, precise, scientific and targeted measures in different areas based on their different epidemic situations. For instance, in terms of Wuhan and other areas seriously stricken by the epidemic, the existing prevention and control measures should be continuously promoted and the priority is still their implementation. The work of grid-based health management should be implemented by every town, community, family, and even by every work position and every single person. The comprehensive screening of epidemic cases and the control of confirmed cases, suspected cases, febrile patients and their close contacts should be further strengthened to curb the spread of the virus and lower the infection rate. In the meantime, the principle of pooling patients, experts and medical resources for centralized treatment should be further implemented so that better resources will be used for treating severe and critical cases and the fatality rate will be reduced. For other areas, we should take classified, precise and scientific measures based on their different levels of risk to further prevent and control the epidemic. Thank you!

Ta Kung Pao and Wen Wei Po:

I have a question. As the treatment of patients in severe cases has been the priority as well as the difficulty, my question is: what major measures have been taken to decrease the fatality rate? Thank you.

Wang Hesheng:

Thanks for your question. We have Ms. Jiao answer this question.

Jiao Yahui:

Above all, our analyses and studies on severe and fatal cases have enabled us to conclude that severely-ill patients in Wuhan now account for about 18% of the total confirmed cases in hospital, and that there are some similarities between these patients and a fatal outcome. The first aspect is that both are of a senior age. The second is that both have underlying diseases. In addition, as patients in severe cases experienced a relatively long period from being infected with the virus to being hospitalized, many were already in severe or critical condition when they were admitted to a hospital. In view of this situation, we have taken various measures, pooled the best resources and intensified the treatment of severe and critical cases in an effort to increase the recovery rate and decrease the fatality rate.

First, we have set up medical treatment expert groups at the national level respectively led by academicians Zhong Nanshan, Li Lanjuan and Wang Chen, as well as academicians Tong Xiaolin and Huang Luqi in traditional Chinese medicine. Under the leadership and guidance of these academicians, medical treatment work across the country has been carried out. Based on nationwide exchange of medical treatment experience, the expert groups have constantly updated and improved diagnosis and treatment plans to provide better guidance to the medical work all over China.

Second, in Wuhan we have designated hospitals under the jurisdiction of the National Health Commission and hospitals at the provincial level, and in some isolated areas of these hospitals we have set up special facilities for severe and critical cases. We have set up teams consisting of experts at national level and provincial level, as well as experts from these designated hospitals. The experts conduct daily consolidated evaluations on all the hospitalized patients and implement a 24-hour critical case reporting system. In other words, we have a list clearly displaying the information of all the patients in severe and critical condition. Every day, the expert teams conduct consolidated evaluations on the cases and propose targeted treatment plans for them. To ensure that patients are treated timely and effectively, we have also set up a discussion and consultation system concerning difficult and complicated cases, a discussion system concerning fatal cases, a regular ward inspection system, a holistic nursing system and a multidisciplinary diagnosis and treatment system.

In addition, based on the previous experience of treating severely-ill patients in these designated hospitals in Wuhan, we have also come up with diagnosis and treatment plans targeted to severe and critical cases, and proposed therapies including anti-virus therapy, oxygen therapy, a therapy of combining traditional Chinese and Western medicine, and a therapy of using the blood plasma from recovered patients. In particular, we are recently focused on the usage of invasive ventilators. We have required doctors to grasp every chance to save lives and use the invasive ventilators at an early stage to help restore patients' blood oxygen saturation and reduce fatalities.

We are happy to see that our efforts in recent times have shown effect. For instance, so far, up to 30 to 39 percent of patients infected with the COVID-19 have been discharged from the Jinyintan Hospital and Wuhan Pulmonary Hospital, the first two hospitals designated for treating severe and critical cases. This inspiring figure gives us great confidence. Thanks.

Wang Hesheng:

I want to add one point. Right from the beginning, we have implemented the principles and requirements put forward by General Secretary Xi Jinping on integrating Traditional Chinese Medicine (TCM) with Western medicine to treat COVID-19 patients. Vice Premier Sun Chunlan, who heads the special work group sent by the central government to Hubei, has mobilized many top experts in integrated therapies of traditional Chinese and Western medicine. The academicians introduced by Ms. Jiao Yahui just now are among the major representatives. To my knowledge, many other academicians fighting on the frontline have also carried out relevant work focused on the formulation, discussion, research and improvement of a treatment plan combining TCM with Western medicine. For example, the academicians I saw on the frontline include TCM expert Zhang Boli from the Chinese Academy of Engineering, and Qiao Jie, president of Peking University Third Hospital, along with many other experts. We have amassed the strongest scientific research and medical force to help combat the new coronavirus under the guideline of integrating TCM with Western medicine in the treatment of COVID-19 patients, and I think this is an extremely important feature in our medical rescue work since the outbreak of the epidemic. That's all I want to explain.

Modern Express:

We have learned that TCM has played an important role in curing patients and containing the epidemic, and the central government has also urged intensifying application of TCM in the whole course of diagnosis and treatment of patients. Would you like to give us more information on this issue? Thank you.

Wang Hesheng:

Just now, I talked about the feature in our treatment plan – integrating TCM with Western medicine. Since the start of the virus outbreak, we have earnestly implemented the important instructions given by General Secretary Xi Jinping, especially the instruction on combining TCM with Western medicine to treat patients, so as to bring into full play the role of the former. Yesterday, we held a special press conference on TCM to introduce relevant information. At the very beginning of the epidemic outbreak, we sent a group of experts to Wuhan to formulate our treatment plan. So far, we have dispatched three national TCM medical teams to Hubei province and organized TCM systems across the country to send medical specialists to the province. A total of 2,220 TCM workers have been sent to help combat the epidemic. The TCM medical teams stick to the principle of integrating TCM with Western medicine in treatment highlighting the best features of the former. More than half of the confirmed cases in Hubei have received TCM treatment. TCM workers have also actively participated in the anti-epidemic efforts at the community level, giving out TCM decoctions to residents in need. All these efforts have produced certain efficacy.

We have been coordinating the resources of both TCM and Western medicine to bring into full play their complementary advantages and promote collaborative research for effective means of prevention and treatment. We will spare no effort in increasing the cure rate, minimizing mortality, and safeguarding people's health and safety. Thank you.

Hubei Daily:

There is great difficulty in containing the spread of the virus at the community level due to the high population density. As the communities are the first line of the epidemic prevention and control work, how will you carry out further prevention and control work at the community level? Thank you.

Wang Hesheng:

Mr. Chang Jile will take your question.

Chang Jile:

General Secretary Xi Jinping stressed the role of community in effectively containing the spread of the virus when he inspected the epidemic prevention and control work in Beijing on Feb. 10. The National Health Commission has resolutely implemented the spirit of Xi's important speech, decisions and arrangements of the CPC Central Committee and the State Council, and decisions of the central government group in Hubei province. We are sparing no effort to guide and supervise the epidemic prevention and control work at community level in Hubei according to guidelines issued by the State Council's Joint Prevention and Control Mechanism. For example, we sent experts in disease control and community health to work with local people to guide all-round community checks in 13 districts of Wuhan. We established expert groups on disinfection, health protection and psychological intervention, and worked out technical solutions for cleaning and disinfection in special places. We have produced handbooks setting out guidance on precaution of the virus targeting different groups of people, different places and vehicles based on conditions in Wuhan. We continue to guide the work of scientific disinfection, health protection and psychological assistance in communities. We have strengthened cooperation with provincial and municipal publicity departments to publicize common sense and skills of disinfection, psychological intervention and epidemic prevention and control in communities. We designated related provincial-level regions to offer pairing-up assistance to Hubei's 14 cities, prefectures and county-level cities apart from Wuhan. Under the unified leadership of the CPC Hubei Provincial Committee and the provincial government, people in cities of Hubei have been fully mobilized to carry out mass prevention and control and grid-based management have also been implemented in those cities to prevent outflow and spread of the epidemic.

Chang Jile:

First, we have strengthened organizational leadership of the prevention and control work of the outbreak and implemented administrative management responsibilities. A joint prevention and control mechanism and special shift for prevention and control work in communities have been established to supervise and inspect the implementation of community prevention and control measures.

Second, we have strengthened health education, issued health tips and medical advices. An emergency broadcast system has been fully activated to guide the public to correctly understand and avoid the virus by ensuring personal protection.

Third, we have fully implemented the screening work. According to the instructions of Vice Premier Sun Chunlan and under the guidance of the central government group, work teams consisting of Party members and cadres, grid management staff, community police, property management service staff and volunteers, are required to do a good job in comprehensive screening detection and body temperature checks in communities to ensure no one is missed. In the meantime, the work of screening and registration as well as timely reporting should be well organized through telephone and WeChat.

Fourth, four types of people who are identified through screening are admitted to hospitals and isolated to control the infection source and cut off the transmission route.

Fifth, they implement closed-off management of residential blocks. The cadres, who normally work in offices now come down into the neighborhoods and onto the epidemic frontline, report to the nearest post in the neighborhood, strictly implement the management system demanding temperature measurement and neighborhood entrance registration. And the duty watchmen go out onto the streets to patrol.

Sixth, they strengthen the special governance of environmental sanitation, strictly clean, disinfect and ventilate public places where crowds trend to gather, especially strengthen environmental governance of the farmer's markets, and implement environmental sanitation measures in each block, unit, family and individual, in order to prevent the spread of disease.

Chang Jile:

At the same time, when we went to other cities, prefectures, counties and villages in Hubei province to research and supervise, we found that the provincial administration has also taken many effective measures to strengthen epidemic prevention and control in the rural areas. For example, they have implemented a multi-level guarantee responsibility work mechanism for cadres working in villages. First, the cadres go to the villages every day to supervise and take the lead in epidemic prevention and control work. They establish a connecting network of cadres linked with the people, as well as working groups to help and offer support, trying to avoid villagers having to go outside their community or town. Villagers can look to village cadres in time to know the situation and report information.

Second, they have stepped up publicity and education efforts about epidemic prevention, give full play to the role of the group leaders of villages and residential units, as well as community block watchmen, who go from door to door teaching necessary prevention and control knowledge and providing protective supplies to every household.

Third, they implement the strictest prevention measures to resolutely curb the spread of the epidemic, by stopping all unnecessary activities, preventing the gathering of people and strengthening daily patrolling. Whenever they find anyone who wants to go out, they will promptly seek to discourage them. There are personnel on duty round-the-clock, and all incoming and outgoing individuals will be registered for checks. Village cadres in every village adopt a person-to-person watchful approach, keeping a close eye on village returnees, the ones with fever, suspected and confirmed patients, as well as all those who have had close contact with these people.

Fourth, they establish a register of confirmed patients, tracking and managing the outflow and inflow of individuals, implementing the "Five Taking Care of One" policy on key individuals, which means that five people of a village epidemic frontline commander, a senior village official, a watchman, a village group cadre, and a doctor will watch over a specific individual, and provide them with a "Five in One" toolkit package which includes a contact card, an epidemic information paper, a thermometer, a bag of protective gloves and a bag of facial masks. They will be capable of adaptation to suit changing circumstances.

Fifth, they enhance the monitoring of public opinion, establishing a village-block two-level public opinion monitoring team and a 24-hour duty system, so that they can investigate and verify any situation in a timely manner, then handle the situation and respond to the public questionings in time, so as to maintain the social order. Thank you.

Lianhe Zaobao of Singapore:

We know the Fangcang makeshift hospital of Wuhan is being used for receiving confirmed and suspected patients. Will the arrangement increase the risk of cross infection? Will it become a breeding ground of infection? In addition, what role has the Fangcang makeshift hospital played in controlling the epidemic so far? Thank you.

Wang Hesheng:

Thank you for your question. I'll give the floor to Ms. Jiao.

Jiao Yahui:

First of all, I would like to make it clear the makeshift hospitals now only receive confirmed cases with mild symptoms, so no cross infection will happen there. In addition, our experts in nosocomial infection have guided medical workers to take preventive measures and perform regular disinfection during the construction and in the process of using the hospital facilities.

In addition, the makeshift hospitals have played a key role in epidemic prevention and control. There is still a shortage of medical resources in Wuhan; meanwhile, the makeshift hospitals that can be built really fast at a lower cost are able to save more regular hospital beds for patients with severe symptoms or in critical condition to achieve a better treatment effect.

The makeshift hospital is playing a good role. We have built nine of these facilities in Wuhan, treating more than 5,600 patients and creating a capacity of nearly 7,000 beds. Recently, several batches of cured patients have been discharged from such hospitals, so it means the emergency hospital has achieved good effect. There will be more makeshift hospitals established in the city to treat patients, and we will make all-out efforts to admit all patients into these facilities and achieve full recovery of all of them. Thank you.

Xinhua:

According to the official data released, the proportion of severe cases is higher in Hubei province, especially in Wuhan, than in other places. What therefore is the plan for conducting medical treatment, especially for severe cases, and what is the design of hospital layout? Thank you.

Wang Hesheng:

Thank you for your question. The situation that you mentioned is true: the proportion of severe cases is higher in Wuhan than in other places. This issue has also concerned the General Secretary of the CPC Central Committee and the Premier. They have repeatedly paid attention to the situation, given instructions and offered guidance. They raised the requirements on medical treatment for severe cases, calling for the conducting of careful research into the situation and for it to be tackled with sound solutions. Vice Premier Sun Chunlan, who heads the special work group sent by the central government, convened meetings of experts from various fields to analyze and evaluate the situation, to summarize the lessons learned for conducting medical treatment, and to optimize the plan for diagnosis and treatment. These meetings brought together treatment experiences from across the country and have continuously perfected the guide for diagnosis and treatment.

The fifth edition of the diagnosis and treatment plan has been released, aiming to increase the admission and cure rate, and decrease the infection rate and the number of fatalities, which is at the top of our agenda. The "four concentration" principle we adhere to means concentrating patients, concentrating experts, concentrating resources and concentrating treatment efforts. We will try our best to mobilize as many resources as we can to minimize deaths. Next, let's give the floor to Jiao Yahui to introduce the detailed measures and methods.

Jiao Yahui:

I will explain more about measures we take when treating patients in a severe condition. First, we stick to the principle that patients are classified and given concentrated treatment, quality resources are pooled and experts are called together for the virus fight. Besides three key designated hospitals – Jinyintan, Pulmonary and Zhongnan hospitals, we have further increased the number of designated hospitals for severe cases. Key Hospitals under National Health Commission (NHC) and Hubei provincial hospitals in Wuhan including Sino-French New City Branch and Guanggu Branch of Tongji Hospital, the west campus of Wuhan Union Hospital, Hubei Cancer Hospital and the eastern branch of Hubei People's Hospital were also designated to offer concentrated treatment for cases in severe condition. At present, these hospitals have 5,000 beds available.

Second, high-level medical teams from hospitals under the NHC and various provinces are called to help in the key designated hospitals in the epicenter of the epidemic. They take over the whole ward systemically. Among these medical teams some are led by academicians, as Mr. He introduced, including Zhong Nanshan, Li Lanjuan, Wang Chen and Qiao Jie with Peking University Third Hospital. They are on the front line to guide the efforts of treating severe cases and their teams take over the whole ward for severe patients systemically. In addition, experts of respiration, infection and intensive care medicine all play important role in these teams.

Third, besides medical instruments in Hubei province, we also called for these medical teams to bring their existing instruments from their own hospitals to designated hospitals for severe cases in Wuhan including breathing machines, monitors, and ECMO, which are put into use immediately and play an important role in the treatment process. At the same time, we have organized national, provincial and municipal-level teams of experts to form a grid mode of management in designated hospitals for non-severe cases. These experts guide the treatment on a circuit, evaluate hospitalized patients, detect cases in severe condition and transfer them to the designated hospitals for advanced treatment, which helps to achieve concentrated management and good treatment.

Xi Yanchun:

Today, the State Council Information Office holds this press conference in Wuhan, Hubei province. We want to brief in a timely, accurate and comprehensive way on the virus fight together with hundreds of journalists on the front lines. Following is the press conference by the Information Office of Hubei provincial government. The time of press conference will be adjusted to 4 pm from tomorrow, and we welcome your careful attention.

The prevention and control of the new coronavirus (COVID-19) outbreak is currently at its most crucial stage. We will make a concerted effort to combat the virus and never been crushed by any difficulty and danger. We believe that under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, all Chinese people work hard together and will resolutely win the war against the pneumonia epidemic.

Today's speakers are all comrades braving on the front lines of virus fight. They work very hard, and thanks again to our speakers and thanks to everybody. The press conference is hereby concluded.

Translated and edited by Zhang Liying, Wang Yiming, Huang Shan, Li Huiru, Cui Can, Zhang Junmian, Yang Xi, Zhang Rui, Gao Zhan, He Shan, Wang Yanfang, Zhou Jing, Wang Wei, Fan Junmei, Guo Xiaohong, David Ball. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Yu Weiping, vice minister of finance; 

Pan Gongsheng, deputy governor of the People's Bank of China and director of the State Administration of Foreign Exchange; 

Wang Daoshu, chief auditor of the State Taxation Administration; 

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

Chairperson:

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

Date: 

Feb. 7, 2020

Hu Kaihong:

Ladies and gentlemen, friends from the media, good morning. Welcome to the press conference of the State Council's inter-agency mechanism to tackle the novel coronavirus-related pneumonia outbreak. We have invited Mr. Yu Weiping, vice minister of finance; Mr. Pan Gongsheng, deputy governor of the People's Bank of China and director of the State Administration of Foreign Exchange; Mr. Wang Daoshu, chief auditor of the State Taxation Administration; and Mr. Zhou Liang, vice chairman of the China Banking and Insurance Regulatory Commission. They will speak on the fiscal policies China has to support the prevention and control of the epidemic and alleviate the difficulties of small and micro enterprises in accessing affordable financing as well as answer your questions.

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

Yu Weiping:

Ladies and gentlemen, friends from the media, good morning. The Communist Party of China (CPC) Central Committee and the State Council are paying great attention to the prevention and treatment of the novel coronavirus-related pneumonia. General Secretary Xi Jinping chaired a meeting of the Standing Committee of the Political Bureau of the CPC Central Committee on the prevention and control of the epidemic, and gave important instructions, stressing that all our work should support the fight against the epidemic. Premier Li Keqiang chaired the meetings of the central leading group on tackling the epidemic outbreak and made clear that epidemic prevention and control is the most important priority at present.

Under the strong leadership of the CPC Central Committee and the State Council, the Ministry of Finance has launched a series of measures including funding and policy support since the outbreak, which are mainly as follows.

In terms of funding support, as of 5 p.m. on Feb. 6, governments at all levels allocated a total of 66.74 billion yuan to epidemic prevention and control, with an actual expenditure of 28.48 billion yuan. Of this amount, 17.09 billion yuan came from the central government, among which, 5.7 billion yuan were used as subsidies for epidemic prevention and control, including 1.8 billion yuan for subsidies for the priority province of Hubei, and 9.95 billion yuan was for basic public health services and epidemic prevention and control at the grassroots level. A sufficient amount of funds was also allocated for scientific research and supply reserves. At present, funds for epidemic prevention and control work in various localities have been guaranteed. The central government is also continuing its efforts to ensure that there are sufficient funds and that they are well managed and used in the fight to prevent and control the outbreak.

In terms of policy support, as of Feb. 6, the Ministry of Finance, in cooperation with other government departments, has rolled out over 10 fiscal and tax policies, which mainly include the following.

First, governments will identify the treatment costs. For the patients infected with the virus, 60% of their personal treatment costs will be subsidized by the central government. Localities where suspected cases seek medical treatment will formulate their own subsidy policies, and the central government will provide a proper amount of subsidies depending on the circumstances.

Second, compensation policies for work-related injuries will be extended to staff working in fields related to epidemic prevention and control.

Third, the central government will provide a fixed amount of temporary work subsidies to medical and health personnel doing epidemic prevention and control work on the frontlines.

Fourth, we simplified the approval procedures for governments' procurement of epidemic prevention and control supplies and opened up "green channels" for the transportation of supplies.

Fifth, we worked out a plan to give out bank loans with discount interest rates for storage companies of medical supplies with a shortage of funds.

Sixth, supplies donated for epidemic prevention and control-related work will be exempt from import duties, consumption tax and value-added tax if they are imported goods.

Seventh, prevention and control supplies imported by health departments will be exempt from import duties.

Eighth, government financing guarantee and re-guarantee institutions at all levels will remove counter-guarantee requirements for companies greatly affected by the epidemic. They will also reduce their financing guarantee and re-guarantee premiums. For the financing guarantee and re-guarantee institutions in the areas seriously affected by the epidemic, the state financing guarantee fund will help to halve the re-guarantee premiums.

Ninth, individual entrepreneurs who are infected with the novel coronavirus can enjoy a one-year extension for guaranteed loans as well as discounted interest rates during the extension period.

Tenth, the central government will provide discounted interest rates to key companies involved in epidemic prevention and control work.

At the same time, we have allocated more treasury funds to guarantee grassroots-level epidemic prevention and control, salaries, operations and basic living standards of working staff and the general public. We have issued notices asking financial departments at all levels to put the safety and health of the people first, implement various policies and increase funding support. This is to dispel people's worries about the cost of seeing a doctor and to ensure that medical treatment and epidemic prevention and control in various localities are not affected by a shortage in funding. In addition, through this, we want to make sure that policies are implemented, work is deployed, budgets are in place, funds are allocated and the necessary supervisory measures and management systems are all in place.

The State Council executive meeting on Feb. 5 decided to roll out a slew of new fiscal, taxation and financial policies to ensure supplies for the epidemic prevention and control work on top of the previously introduced measures. The major policies are as follows: 

First, enterprises producing key anti-epidemic supplies will enjoy a one-time pre-tax deduction for new equipment purchased to expand their production capacity.

Second, taxpayers will enjoy value-added tax (VAT) exemption for their income earned from transporting key anti-epidemic supplies. 

Third, enterprises producing key anti-epidemic supplies will have all of their incremental VAT credits refunded starting from Jan. 1, 2020. 

Fourth, registration fees for drugs and medical devices related to the prevention and control of the novel coronavirus will be waived.

Fifth, for companies involved in transportation, catering, accommodation, tourism and other sectors which are greatly affected by the epidemic, their losses logged in 2020 can be carried over for an additional three years on top of the current carry-forward timeframe of five years. 

Sixth, taxpayers can enjoy VAT exemption on income from shipping key anti-epidemic supplies and providing public transportation services, living services, and delivery services for daily necessities.

Seventh, the civil aviation development fund will be waived for all civil aviation enterprises.

Eighth, enterprises and individuals that donate anti-epidemic medical supplies to hospitals via non-profit social organizations or through direct means, can fully deduct the value of their donations from their tax returns. Goods donated by various units and self-employed people for the prevention and control of the pneumonia outbreak will be exempt from VAT, consumption tax, urban maintenance and construction tax, and education and local education surcharges. 

Ninth, for medical staff and other personnel participating in the prevention and control of the epidemic, temporary work subsidies and bonuses they receive in accordance with the standards prescribed by the government, as well as medicines, medical supplies and protective supplies offered to them by their organizations, will not be included in their wages and salaries, and are exempt from individual income tax. 

Tenth, we will increase subsidies to lower the interest rates of loans. We will give a 50% discount to ensure that the interest rate stays below 1.6% for key enterprises in the production, shipment and sales of medical supplies and daily necessities for the prevention and control of the epidemic. 

Eleventh, enterprises have been encouraged to step up the manufacturing of urgently needed key medical supplies, guaranteeing both their quality and quantity. The excess medical supplies they produce will be procured by the government as reserves. 

At present, we are still at a crucial stage in preventing and controlling the epidemic. The above policies will play an important role in lowering production, operation and financing costs of relevant enterprises and increasing supplies of anti-epidemic materials and medical products. The policies will also help our enterprises overcome difficulties and mobilize various social resources to offer stronger support in our battle against the novel coronavirus.

Currently, we are working with different departments to prepare and issue operational documents, and we will work hard to ensure that our policies can be fully implemented and their effectiveness brought into play. 

Thank you!

Hu Kaihong:

Thank you, Mr. Yu. Next, let's give the floor to Mr. Pan Gongsheng, deputy governor of the People's Bank of China (PBOC) and administrator of the State Administration of Foreign Exchange.

Pan Gongsheng:

Friends from the media, good morning. First of all, on behalf of the State Administration of Foreign Exchange of the PBOC, I would like to extend my sincere thanks to your support for our work in the financial sector.

Since the outbreak of the novel coronavirus (2019-nCov), all institutions in China's financial sector have resolutely implemented the important instructions of General Secretary Xi Jinping, as well as every decision made by the CPC Central Committee and the State Council. In accordance with the deployment of the leading group of the CPC Central Committee on the prevention and control of the novel coronavirus outbreak and the guidance of the State Council's Financial Stability and Development Committee, we have prioritized the prevention and containment of this epidemic, sparing no effort to provide financial support to fight this outbreak.

First, we have been working to maintain sufficient liquidity in the financial system. As required during a meeting of the State Council's Financial Stability and Development Committee, the People's Bank of China launched open market operations on Feb. 3 and 4 that exceeded expectations, and injected a total of 1.7 trillion yuan of liquidity in these two days. This aims to maintain liquidity in the banking system at a reasonably sufficient level during this critical period of epidemic prevention and control, intensifying counter-cyclical adjustment and further stabilizing market expectations.

Second, the currency, stock, bond and foreign exchange markets have re-opened on schedule and have remained stable. We will step up and further strengthen our service in the financial market infrastructure, ensuring the daily business operations of the domestic financial market, such as issuance, trading, clearing and account settlement, to name a few. Thus, the financial market will continue to run in a stable and effective manner. In terms of the stock and foreign exchange market, after the major adjustment on the first day it re-opened, the stock market has rebounded and stabilized over the course of the past few trading days. The RMB exchange rate has also maintained two-way fluctuations that are within a reasonable and balanced range. All of these developments demonstrate the improved resilience of China's financial market which is becoming more mature.

Third, we have strengthened our efforts to provide financial support to the prevention and control of the epidemic, to ensure people's livelihood and support the stable development of the real economy. On Feb. 1, 30 policies and measures were introduced jointly by the PBOC, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange. These policies require that financial institutions, namely banks, bond and insurance institutions, improve their financial services. They are required to offer services in financial market infrastructure, including those related with treasuries, foreign exchange, cash, credit and payments. Their business processes also need to be simplified and certain costs reduced, so as to maintain the continuity of financial services and make it more convenient. The PBOC set up a special loan has provided relending funds of 300 billion yuan (about US$ 42.98 billion), implemented preferential interest rates, and strengthened financial support to key medical suppliers as well as suppliers of daily necessities. We will also continue giving financial support to key sectors including small and micro-businesses, private enterprises, and the manufacturing industry. In addition, we will increase credit loans, medium- and long-term loans and reduce overall financing costs. We will still guarantee loan services to those businesses facing financing difficulties amid the epidemic.

The policies and measures taken by China's financial authorities in response to the 2019-nCoV have been fully recognized by the financial market and all sectors of our society. They are also highly regarded by the International Monetary Fund, the World Bank, as well as the global financial industry. It is generally believed that the impact of the 2019-nCoV is temporary and limited. China's economy will continue to demonstrate its great resilience, and the Chinese government has sufficient room to adjust its policies to bolster the stable growth of its economy.

Next, under the strong leadership of the CPC Central Committee, all institutions in the financial sector will thoroughly implement the work deployment of the leading group of the CPC Central Committee on the prevention and control of the novel coronavirus outbreak. Under the guidance of the State Council's Financial Stability and Development Committee, we will work to implement the 30 policies and measures to provide financial support to the prevention and control of the epidemic, intensify counter-cyclical adjustments to maintain the stability of the financial market, and further increase financing support to the areas severely affected by the epidemic. Thus, we will be able to better satisfy the people's basic need for financial services, and promote the continuous and positive development of the national economy. Thank you.

Hu Kaihong:

Thank you, Mr. Pan. Next, let's invite Mr. Zhou Liang, vice chairman of the China Banking and Insurance Regulatory Commission, to give us a briefing.

Zhou Liang:

Friends from the media, good morning. The novel coronavirus pneumonia, featuring an abrupt outbreak and extensive spread, has been affecting people's health and threatening their lives. At present, winning the battle of epidemic prevention and control is our top priority. Facing the increasingly critical epidemic situation, it is incumbent upon our financial system to play a more active role in the fight against the epidemic. We will implement the "two upholds" through practical actions, resolutely upholding General Secretary Xi Jinping's core position on the Party Central Committee and in the Party as a whole, and resolutely upholding the Party Central Committee's authority and its centralized and unified leadership.

The China Banking and Insurance Regulatory Commission (CBIRC) has firmly implemented the important instructions by General Secretary Xi Jinping and subjected itself to the Party Central Committee's unified leadership. Working under the CPC Central Committee leading group on the prevention and control of the novel coronavirus outbreak and the State Council joint prevention and control mechanism, we have enhanced our political stance and put the prevention and control of the disease as our first priority. Guo Shuqing, chairman of the CBIRC and secretary of the CPC CBIRC Committee, has placed great importance on this. On Jan. 21, he gave immediate instructions regarding the suspected cases of the novel coronavirus infection at an outlet of the Agricultural Bank of China in Wuhan city, requiring staff to isolate and observe themselves for symptoms in the confines of their homes to curb the spread of the virus. On Jan. 23, the CPC CBIRC Committee made arrangements for all relevant departments and associations to keep a close eye on the epidemic situation and ensure the timely delivery of financial services. On Jan. 26, the CBIRC issued a notice to all the institutions within the system, requiring them to fully cooperate with the epidemic prevention and control work. Later, the CBIRC jointly worked with the People's Bank of China and other relevant departments and ministries to adopt a series of policies and measures to curb the spread of the virus in the financial system, as well as to encourage the banking and insurance industries to provide strong financial support toward the prevention and control of the epidemic.

The banking and insurance institutions have borne the weight of responsibility and taken an active and people-centered approach in fighting the epidemic. We have adopted strong and effective measures and made all-out efforts to meet the funding needs of the prevention and control work. We have also improved financial services, proactively cut fees and made interest rate concessions, accelerated insurance claim settlements and donated money and goods. As a result, notable progress has been made. Also, we have taken firm action to forestall and defuse financial risks and sustained the steady and healthy operation of the banking and insurance industries to improve their vitality, competitiveness, resilience and ability to fend off risks, and vigorously safeguarded financial safety and market stability.

The fight against the epidemic is now ongoing, and we will soon see the light at the end of the tunnel. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we have every confidence that we will win the battle against the epidemic by working as one and fighting in unison. Thank you.

Hu Kaihong: 

Thank you, Mr. Zhou. Now, let's move on to questions. Please identify which media outlet you work for before asking your questions.

People's Daily:

Now we are facing a crucial time in the prevention and control of the novel coronavirus-caused pneumonia outbreak. The supply of goods and materials needed for the emergency response is still facing a shortage in Wuhan, Hubei and other areas seriously stricken by the epidemic. Just now Mr. Yu introduced to us the series of policies including interest subsidies and preferential tax rates enacted by the financial departments of the Central Government to support enterprises manufacturing goods and materials needed for the epidemic prevention and control. My questions are, have the effects of those policies been already seen? And what measures will the relevant tax authorities take to ensure the implementation of these policies? Thank you. 

Yu Weiping:

Thanks for your question. To ensure the supply of goods and materials for the epidemic prevention and control work, the State Council executive meeting carried out special research and deployment on Feb. 5. The meeting concluded with the introduction of policies mainly in the following three aspects. The first aspect concerns interest subsidies, aimed at strengthening financial support to key manufacturers of epidemic prevention and control goods and materials, as well as backing them in their recovery and expansion of production capacity to ensure the steady supply of such goods and materials. The Ministry of Finance and the People's Bank of China for the first time jointly adopted the policy of special refinancing and government-funded interest subsidies. This policy presents four features. The first feature lies in the significant reduction of the financing cost of enterprises. As I have mentioned just now, the actual financing cost of enterprises will be reduced to less than 1.6%. This is a major advantage for them. The second feature is the expanded scope of enterprises under such support. The third feature is the simplified procedure in which to implement this policy. Priority is given to urgent cases and special methods are adopted for special cases. The fourth feature is the concerted efforts based on inter-departmental coordination. The National Development and Reform Commission and the Ministry of Industry and Information Technology are responsible for the management of the list of key enterprises while the People's Bank of China will provide the special refinancing. The interest subsidy is funded by the central finance authority, financial institutions will strictly make examination for approval of the release of loans, and the National Audit Office will strengthen supervision. Thus, all the relevant departments form strong synergy in the overall effort. 

The second aspect concerns the purchase of reserves. There is a policy which encourages enterprises to manufacture urgently needed key medical goods and materials of good quality and sufficient quantity such as N95 masks and protection suits. These enterprises need not worry about surplus key medical goods and materials for the prevention and control of the epidemic because the government will purchase them all. This policy is in fact a stabilizer for these manufacturers. 

The third aspect concerns taxes and fees. Take the supply of goods and materials for example. First, the policy supports key manufacturing enterprises in their expansion of their production capacity by giving them preferential tax rates and fully refunding them excess input VAT credits. This is in fact a measure to increase the cash flow of enterprises. Second, the policy which cancels the five million yuan limit on enterprises and permits the one-off pre-tax deduction of corporate income tax on production equipment purchased for the expansion of capacity is to encourage enterprises to expand their capacity. Third, the policy which exempts relevant drugs and medical equipment from registration fees is to strengthen support for the research and development of drugs and vaccines. Fourth, there is a policy that exempts enterprises that convey key goods and materials for the prevention and control of the epidemic from value-added tax so as to ensure the timely transportation of such goods and materials. Fifth, another policy in this aspect is to help relevant industries. In order to curb the spread of the epidemic, many areas have taken controlling measures, which have affected industries related to people's livelihood such as transportation and service industries. Therefore, the policy which grants preferential rates for value-added tax and corporate income tax to industries including transportation, catering, accommodation, tourism, logistics and civil aviation is a measure to help enterprises pull through the crisis. Sixth, there is another tax policy that aims to encourage the active donation of funds or materials from all sectors of society to relieve the pressure for medical aid funds or materials. On the one hand, by strengthening the existing policies and expanding the scope of organizations accepting donations, the policy permits direct donations to hospitals and enterprises which do so can enjoy preferential tax rates while lifting the limits on the pre-tax deduction ratio. On the other hand, this policy exempts donated goods from value-added tax and consumption tax. In addition, this policy also exempts the temporary allowance and bonuses received by medical staff and epidemic prevention workers from personal income tax. 

As for our next step, we will trace the policy implementation and conduct timely research concerning some of the various outstanding problems. This is to ensure that our policies always focus on the prevention and control of the epidemic and will provide help to enterprises trying to resume work and production. 

Wang Daoshu:

In terms of the implementation of relevant preferential tax policies as mentioned by the People's Daily just now, I want to make some supplementary points.

As has been introduced by Mr. Yu, according to the decision made at the State Council executive meeting, the Ministry of Finance and the State Taxation Administration have issued several notices and put forth some targeted and forceful preferential tax policies to support the prevention and control of the epidemic. Concerned with the novel coronavirus pneumonia outbreak, General Secretary Xi Jinping placed special emphasis on the detailed implementation of the policies. In accordance with General Secretary Xi Jinping's instructions and the work deployments of the CPC Central Committee and the State Council, the Party committee of the State Taxation Administration, Commissioner Wang Jun and our tax authorities at all levels have resolutely taken the responsibility to implement tax policies to help in the prevention and control of the pneumonia outbreak. We have done this while focusing on higher standards and deploying more concrete measures. The specific measures of the implementation work cover the following aspects:

First, we have paid close attention to the training of officials in the tax administration system. Once the policy was announced this morning, pre-planning arrangements were made to ensure that given the special situation, officials and employees of tax authorities at all levels strengthen their learning and understanding of policies in a proper way. In particular, front-line staff members of the tax administration system as well as personnel of the 12366 tax service hotline must understand the policies well, answer the public's questions accurately, and effectively implement the relevant tax policies.

Second, we are now standardizing the specifications of our operations. We will soon publish guidelines to preferential tax policies to support the epidemic prevention and control work. To ensure the accurate implementation of tax policies, the existing national tax authority's tax service specifications and tax collection and management specifications have been adjusted and optimized accordingly. Tax collection and management information systems have also been adjusted accordingly. All these measures aim to ensure the effective execution of duties by the staff in the front line as well as taxpayers.

Third, given the special circumstances we are facing, we have adopted a strategy of pushing out targeted and in-depth publicity to the relevant taxpayers while avoiding actual physical contact. After the National Development and Reform Commission and the Ministry of Industry and Information Technology determine the target enterprises such as key manufacturers of goods and materials needed for the prevention and control of the coronavirus-caused pneumonia, tax authorities will conduct targeted publicity by sending out information of the policies to these enterprises to help them understand them in a timely way and enjoy preferential tax policies as soon as possible. 

Fourth, given this special context, we have innovated and adopted "contactless" methods to allow the public to use our tax services. We have taken a series of measures to optimize the functions of the e-taxation platform and allow the public to pay their taxes online. Should a taxpayer have to go to a physical tax service hall to handle certain tax-related matters, we will stagger their appointments so as to ensure the safety of taxpayers.  

Last but not the least, within the taxation system, we have strengthened the accountability system. We have also implemented strict performance appraisals, supervision and accountability, and tightened discipline to ensure that policies are implemented to the letter and that the policy incentives and concerns from the CPC Central Committee and the State Council benefit relevant taxpayers. 

At present, we are at a crucial stage in our battle against the novel coronavirus pneumonia outbreak. Tax authorities throughout the country should strengthen their consciousness of the need to maintain political integrity, think in big-picture terms, follow the leadership core, keep in alignment; have 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 are confident and capable of fully implementing the new preferential tax policies. We are also confident that the CPC Central Committee will be reassured by our work and the people will be satisfied with our efforts. Thanks.

Bloomberg:

We wonder how the epidemic is affecting China's deleveraging policy? Will it cause more non-performing loans? How will it affect the fiscal deficit? Thank you.

Pan Gongsheng:

Thank you for your questions. First, due to the combined action of various policies and measures in recent years, China's macro leverage ratio remains basically stable, and the overall macro leverage ratio has been maintained at about 250% for almost ten quarters. Second, the move of structural deleveraging has achieved obvious effects. The level of corporate leverage ratio has been declining. Compared with the high points in 2017, it has decreased by 5 to 6 percentage points in the past two years. The growth of the levels of leverage ratios of the household sector and the government sector is also exhibiting a declining trend. Third, China has enough policy tools to cope with the downward pressure on its economy. Among the major economies in the world, China is one of the few countries that still adopts a normalized monetary policy. Fourth, when we implement monetary policie, we need to comprehensively consider multiple factors of internal and external balances such as economic growth, leverage ratios, inflation expectations, and exchange rates. And in the context of the epidemic and the downward pressure on the economy, maintaining economic growth has now become even more important. The People's Bank of China will carefully study and evaluate the monetary policy, ensure that it stays at an optimal level, and balance the relationship between our monetary policy's ability to support economic growth and to stabilize leverage. Thank you.

Yu Weiping:

I want to add to this. This year's fiscal deficit arrangements have taken into account some uncertain factors. Judging from the current situation, we believe the expenditure for epidemic prevention and control is guaranteed, and we are confident that we will accomplish this year's fiscal targets. Thank you.

Zhou Liang:

The reporter also asked if the epidemic would have any impact on the non-performing loan (NPL) ratio of small and micro enterprises. In 2019, the NPL ratio of inclusive loans to small and micro enterprises was 3.22%, a decrease of nearly 1 percentage point from 2018. Objectively speaking, the epidemic outbreak has some impact on small and micro enterprises, especially those in sectors such as accommodation, tourism, and catering. But in general, first, the total affected amount will not be too large. The hard-hit regions like Wuhan in Hubei province may be affected a little more. Other areas are affected by factors related to the Spring Festival holiday and epidemic prevention and control measures. We project that the NPL ratio will rise. But from the perspective of the operation of the entire financial system, we can say things will be fine given that last year we resolved non-performing assets worth 2.3 trillion yuan, and the proportion of small and micro enterprises' non-performing assets was relatively small. In addition, the provision coverage ratio in China's banking system has reached over 180%, so there are sufficient resources to cope with possible increase in the NPL ratio. Everyone should look at the relationship between the economy and the financial real economy in the long run. You should see that this epidemic will only be a temporary event. From the perspective of China's economic resilience and ability to absorb short-term impacts, its influence will soon pass and is unlikely to heavily impact China's financial system. Thank you.

CCTV:

We know the Chinese government is trying to lower the financing costs for small and medium-sized companies. How will this outbreak affect them? Are there any measures to ease their difficulties in accessing affordable financing? Thanks.

Zhou Liang:

The CBIRC has taken this issue very seriously. In 2019, we made a lot of efforts to address this problem. Bank loans to small and micro companies had a combined value of over 2 trillion yuan, up 24.6%, at a far higher growth rate than any other bank loans. The number of these companies taking out bank loans rose by 3.89 million. The average interest rate on new loans in 2019 was lowered by 0.69 percentage point from a year ago. If we look at all the factors combined, their overall financing costs have been lowered by more than 1 percentage point.

Due to the outbreak, a lot of small and micro companies are facing temporary difficulties. The CBIRC has asked banks and insurance companies to aid small firms hit by the coronavirus epidemic. For example, many banks have lowered their lending rates by 0.5 percentage point to small and micro companies in Hubei province, and other banks have offered them special loans or an exemption of overdue interest, so as to provide effective financing support for these companies. 

But to tackle the root problems, we need to do more to offer financial support for small and micro companies. First, this year we will try to increase the growth rate of bank loans to small and micro companies, and the growth rate should not be lower than that for any other bank loans. The number of recipients should also see an increase. Second, we need to lower the financing costs for small and micro companies. Third, we will enhance the quality of such financing services, including the share of credit loans as well as the medium- and long-term lending for small and micro companies. Fourth, we will ensure that more new loans will be provided to companies that are first-time borrowers. 

We will take measures in the following aspects:

First, to increase the supply. Commercial banks should work out a credit scheme for small and micro companies. And as for the different branches, we need to ensure that they take up their responsibilities. Policy banks should play an effective role in making countercyclical adjustments, and work with small- and medium-sized banks to provide refinancing services for small and micro companies. In addition, we should step up support for companies in the manufacturing sector. By doing so, healthy competition will be fostered in the financing markets and financial services will be delivered to the community level. 

Second, to improve the credit structure. We should help banks step up their efforts in providing bank loans to small and micro companies that are first-time borrowers, or those who plan to continue their bank loans. A variety of financing products with regard to medium- and long-term lending should be developed in order to match companies' different financing needs. 

Third, to further lower financing costs. According to the LPR mechanism, banks will set a reasonable pricing of interest rates to small and micro companies. The major banks need to take the lead in lowering costs, and small and medium-sized banks are encouraged to lower lending rates as well. At the same time, we will take serious measures to crack down on unreasonable fees. There still are some people and institutions that try to break the boundaries set by our regulations, and we will be tough on them this year. 

Fourth, to further improve and implement differentiated supervision policies. We will try to raise the tolerance for non-performing loans to small and micro companies. We will also set up a long-term sound mechanism to encourage more lending to small and micro companies. 

Fifth, to use advanced technologies, including big data, cloud computing and AI to improve the quality of financing services and to collect data. We will improve risk management controls for lending money to these companies and lower the costs for companies accessing different financing options. 

Sixth, to improve credit information integration and sharing. Some small and micro companies do not have complete financial statements when they apply for loans. As such, we will work with the NDRC, finance, taxation, customs and market regulation authorities, and encourage local governments to set up a platform for sharing credit information about these companies.

We believe that with all these measures, we will be able to make tangible improvements in providing financial support for these small and micro companies this year.

Pan Gongsheng:

Mr. Zhou has already given the best answers to your question, but I still would like to share a few more points. Small- and micro-sized businesses and private businesses are less resilient to the epidemic and are easily impacted by the coronavirus outbreak. As such, specific policies need to be carried out during this special period. A few days ago, five ministries jointly issued a document containing 30 policies and measures. Many of them focus on providing financial solutions to support and help small- and micro-sized businesses and private businesses during this special time. Our banks, insurance companies, securities firms and other financial institutions have initiated several specific measures to help small- and micro-sized businesses overcome their financing difficulties.

Normally, easing small- and micro-sized businesses' financial difficulties is a complicated and systematic project which serves the real economy and promotes financial supply-side reform. This project requires perseverance and sustained efforts. Both the CPC Central Committee and the State Council place great importance to the financial difficulties of small- and micro-sized businesses and private businesses. We have taken many actions to help them overcome their difficulties and we have seen the effects of some of our work. Mr. Zhou addressed this very clearly in his explanation. We have no doubt that helping small- and micro-sized businesses solve their financial problems is still the most important task in our financial system this year and in the future. In this regard, we need to reform and improve our monetary policies, fiscal policies, regulatory policies and taxation policies. We also need to improve the policies as well as the incentive and restraint mechanisms inherent in commercial banks' services to small- and micro-sized businesses. We should encourage commercial banks to enhance their services to small- and micro-sized businesses as well as improve their internal resource allocation, work performance reviews, risk assessment, financial technology and so on. We should also work with local governments to improve credit information and risk allocation mechanisms.

As Mr. Zhou just said, with the joint efforts of our financial management department and financial institutions, and with our perseverance and sustained efforts, I think that these problems should definitely be solved to some degree. Thank you!

Market News International:

I have a question for Mr. Pan. Earlier this week, China's central bank injected liquidity into the market and adjusted the interest rate, and we saw a marked decline in inter-bank interest rates. Can you please explain to us the actual situation behind the decline in the interest rates of loans? In the near future, will the central bank continue lowering the medium-term lending facility (MLF) interest rate and accelerate the declining trend in lending rates? With what intensity and pace will banks continue to increase financing to stabilize the market and expectations in the later period?

Pan Gongsheng:

First, on Jan. 1, we announced to cut the reserve requirement ratio (RRR) by 50 basis points , releasing around 800 billion yuan ($114.6 billion) of long-term funds. The financial markets re-opened after the Spring Festival holiday, and on Feb. 3 and 4 the People's Bank of China pumped a total of 1.7 trillion yuan via reverse repos to inject funds into the market. These measures show the central bank's strong determination in stabilizing market expectations and boosting market confidence. In terms of the current market operations, the bid-winning rates of seven-day and 14-day reverse repos were 2.4 percent and 2.55 percent respectively, both down by 10 basis points. In the context of the increasing volume of funds and declining price, the interest rate of the entire financial market is also falling. On Feb. 6, the overnight repo rate and seven-day repo rate were around 1.8 percent and 2.3 percent respectively, fairly stable.

We all know that the loan prime rate (LPR) is the optimal quoted interest rate for loans, which is formed on the basis of the quote prices by 18 banks. Changes in the interest rates across the whole market will be reflected in the loan rate. Interest rate changes in the financial and money markets will also affect LPR expectations. The expected MLF interest rate next time and the LPR to be released on Feb. 20 will quite probably show a downward trend. The LPR adjustment will have strong influence and guidance on the pricing of commercial bank loans, because the banks' lending rates are formed by adding or subtracting basis points based on it., and when banks lend money, they adjust the range of points according to the interest rate changes in the market. 

As to the next steps, the People's Bank of China is analyzing and assessing the epidemic's impact on the economy in accordance with the requirements of the State Council. China still has enough room to adjust its macroeconomic policies, and it is also one of the few major economies maintaining normal monetary policies. Therefore, what we have in our toolkit is sufficient. 

In terms of monetary policy, the next step is to increase the intensity of counter-cyclical adjustments, maintain reasonable and sufficient liquidity, and create a much better financial environment for the real economy. The second is to further market-oriented interest rate reform and improve the market quotation interest rate mechanism, which is the LPR transmission mechanism I mentioned just now. This will then improve the transmission efficiency of monetary policy and lower the social financing costs. Thirdly, we will keep using structural monetary policy tools such as targeted reductions in reserve requirement ratio of banks, relending, and re-discounts, and give more support to the key areas and weak links in our national economy. Thank you.

Phoenix TV:

It was reported that regulators may delay the implementation of the new asset management regulation due to the impact of the epidemic. Is that true? If so, how long will the delay be? Thank you. 

Pan Gongsheng:

We are making the assessment, and what you have mentioned is a possibility. The People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) are still making their technical assessments.

China Daily:

The central bank announced recently that it will allocate 300 billion yuan ($42.9 billion) in special refinancing loans. How will this be utilized and how can we ensure that the money will be used to support the prevention and control of the epidemic? Also, what is your take on the current financial market, especially the fluctuation and future trajectory of the stock and foreign exchange markets? Thank you.

Pan Gongsheng:

Mr. Yu has responded to your question from the perspective of finance. In order to win the battle against the epidemic, the PBOC has showed its responsibility in tackling this crisis. With the approval of the State Council, the PBOC decided to provide 300 billion yuan in special refinancing loans, which aims to offer preferential interest rates to major companies involved in the production, transportation and sale of medical supplies and daily necessities. These loans will be provided by state-owned commercial banks and local commercial banks in regions that are seriously affected by the outbreak. We will use a list-based management system, and the National Development and Reform Commission as well as the Ministry of Industry and Information Technology will identify the companies which will be put on this list. On the list currently are manufacturers involved in the production of key medical supplies and daily necessities, such as face masks, goggles, sanitizers and disinfectants. Based on this list, financial institutions will grant these special loans offered by the PBOC to the companies. We will ensure all the processes will be handled as fast as possible.

The cost of the special loans that the PBOC has provided to the commercial banks is pretty low. We required that the interest rate that commercial banks have offered to the companies on the list not be higher than 3.15%, which is one percentage point lower than the Loan Prime Rate (LPR) of last month. Looking at the current lending situation, the lending rates of the commercial banks are between 2.4% and 3.15%. Based on this, the Ministry of Finance will grant companies discounted interest subsidies at a rate of 50%. That is to say, a company's actual loan financing costs will not be higher than 1.6%. As this is a special policy, we need to ensure that the utilization of the loans is highly focused. The PBOC will work together with the Ministry of Finance, the National Development and Reform Commission and the Ministry of Industry and Information Technology to ensure that we put in place this list-based management system to ensure that the loans will be used for the prevention and control of the epidemic. At the same time, we have created electronic accounts to check on how the loans are being utilized. Also, we have ordered audit authorities to step up their follow-up monitoring efforts. 

On Feb. 3, China's financial markets, especially the stock and foreign exchange markets re-opened as scheduled, which shows the Chinese government's commitment to upholding market rules and reflects the confidence of the decision-makers. It also reflects that China's financial markets are becoming increasingly mature. On Feb. 3, China's A-shares and the exchange rate of the onshore Chinese yuan saw major adjustments, which was expected. After that, the Chinese stock market stabilized and rebounded; the exchange rate of the Chinese currency experienced a two-way small-scale fluctuation, and cross-border capital flows as well as the supply and demand of foreign exchange remained stable. Later this evening, the State Administration of Foreign Exchange will release the data on China's foreign exchange reserves in January, which also showed a steady rise. The financial markets are highly sensitive to risks, and such reactions will be reflected through rapid pricing. After experiencing a short-term fluctuation, the stock and exchange rate markets have returned to normal. We can see that the financial market, in its own special way, has expressed its confidence in the Chinese government's ability to control the epidemic and China's future economic growth. Just as I said earlier, the impact of the epidemic on the Chinese economy is just temporary and limited, and it will not change the fundamentals of China's positive long-term economic and high-quality growth prospects. Also, the Chinese economy has shown strong resilience. The Chinese government has ample policy tools to promote steady economic growth, so we have confidence in the continued steady operation of the Chinese stock and foreign exchange markets. Thank you. 

Economic Daily:

How will taxation authorities ensure the safety of visitors who are concerned about being infected while paying taxes or fees in service halls since the outbreak of the epidemic？ Thank you.

Wang Daoshu:

In line with the decisions and work deployments made by the CPC Central Committee and the State Council, the Party committee of the State Taxation Administration convened during the Spring Festival holidays. During the meeting, we made plans and deployed special advance measures to ensure that safe and smooth procedures are in place for those who need to pay taxes or other fees while the work to prevent and control the epidemic is still ongoing. The arrangements we have made now mainly focus on the development of contactless tax payment services. We have measures to guide taxpayers to make payments through contactless channels such as the official websites of taxation bodies, apps or self-service tax payment terminals. 

I would like to tell you that currently 80 percent of tax-related matters can be handled through the websites and web portals of the various taxation offices. For instance, taxpayers can either receive their receipts by courier or delivery services after applying online to receive them. Alternatively, they can also retrieve them from self-service terminals as long as they have completed all the necessary online procedures. These measures can reduce the chances of face-to-face contact with counter clerks. For those who face difficulties or have personalized needs, they can call our 12366 hotline or get in touch with us through our WeChat accounts. Through our continuous efforts, we have improved our services in both these channels.

Certainly, we have also taken into account several instances where tax-related matters cannot be completed without physical visits to taxation counters. In these cases, clients are advised to book beforehand so that we can stagger their arrivals and ensure that they won't come in large groups. In our service halls, we have spaced out our staff to man every other window to prevent crowding and the epidemic from spreading further. We guarantee that all taxation offices as well as automated equipment are sterilized in line with the prevention and control requirements and all our staff there are also asked to wear face masks. The taxation bodies will continue to improve the comprehensive taxation services and facilitate procedures with more accurate guidance. The receptionist who first receives a certain inquiry will also be held accountable. That is how we ensure the health and safety of our customers.

In short, with all the measures mentioned above, we will ensure that our online and terminal services run well, and also increase the efficiency and reliability of our teller services at our physical locations.

Reuters:

Based on the recent analysis and market forecast, China's economic growth in the first quarter of this year will fall substantially. Will the growth rate fall below 4 percent? Do you need to carry out stimulus measures, such as, to cut interest rates, to reduce the required reserve ratio or increase the deficit-to-GDP ratio? Thank you.

Pan Gongsheng:

Recently, there have been a slew of research studies, analyses and debates among economists, market institutions and government departments in regard to the future of China's economy. The People's Bank of China is also paying close attention to the operation of China's economy. We are also in the midst of our own research and forecasts. In our opinion, the epidemic's impact on our economy is temporary. Coinciding with the Chinese Lunar New Year holiday, the outbreak has had repercussions on the tertiary industry, including tourism, catering and entertainment, and due to the extended holiday, manufacturing and construction sites which delayed production had also been affected as well. We think the epidemic will impact the economy in the first quarter of this year, but our output can rebound once our economy's production potential is released after the 2019-nCov outbreak is controlled. In retrospect, the economic growth in the second quarter of 2003 was affected by SARS, but it rebounded in the third quarter as soon as the pandemic disappeared. Therefore, in our opinion, after the epidemic eases, China's economy will again return to stable growth. Consumption and investment which had been constrained or delayed will be restored and the economy will recover. 

As I said, the Chinese economy has strong resilience and great potential. We have laid the foundation for its long-term and high-quality growth which can't be weakened by the outbreak of this epidemic, and there is still ample room for China's macro-control policy. In terms of monetary policy, China is one of the few economies among the world's major economies that still carry out normalized monetary policy, which offers the Chinese government sufficient tools to effectively deal with the impact of the epidemic. As for the specific policies you just asked about, the People's Bank of China is carefully analyzing and evaluating the impact of the outbreak to the Chinese economy and will make pragmatic policy responses. Thank you.

Yu Weiping:

I agree with Mr. Pan that the outbreak of the novel coronavirus will bring some impact to the Chinese economy, but it won't change the basic trend of its long-term steady and sound growth. Under the guidance of the CPC Central Committee and the State Council, the Ministry of Finance and relevant departments have already introduced a series of tax and fee reduction policies.

Next, we will continue to implement and refine the relevant policies, and further consolidate and expand on our current results. According to the requirements of the "three guarantees," we will pay close attention to the tax changes of all industries, and resolve significant problems faced by enterprises that are affected by the epidemic in a timely manner. In so doing, we will be able to allow the tax and fee reductions to fully take effect. We believe that under the strong leadership of the CPC Central Committee and the State Council, together with the great efforts of all Chinese people, we will definitely resume normal production and life as soon as possible, as well as minimize the adverse impact of the epidemic. Thank you.

Hu Kaihong:

One last question, please.

China News Service:

The financial industry has played an important role in the prevention and control of the outbreak of the epidemic. I was wondering, under the guidance of the China Banking and Insurance Regulatory Commission (CBIRC), what did the banking insurance industry do? Thanks.

Zhou Liang:

Finance is the economy's lifeblood, which is closely linked to social production and everyday life. Since the outbreak of the epidemic, the CBIRC responded immediately, issuing documents and notices and deploying a series of measures in accordance with the requirements of "keeping two steps ahead." Under the current circumstances, we will make finance play a more positive role. What we have done is as follows:

The first is to pay great attention to the prevention and control of the epidemic in our own system. We have guaranteed and put in place three key components - personnel, responsibilities and work. Doing so allows us to implement all the different types of work needed to control the outbreak.

The second is to ensure the provision of secure and smooth financial services. Insurance institutions and bank outlets are asked to clean and disinfect their premises and equipment every day to provide a safer environment for their customers. At the same time, business hours can be adjusted to ensure that the public can have access to a stable supply of basic financial services. In particular, we encourage more online instead of offline services, so that fewer people will make physical trips to public places and also make it more convenient for the general public.

The third is to provide preferential services for customers who are affected by the epidemic. Banks will introduce preferential credit policies to customers affected by the novel coronavirus, such as flexible mortgage and delayed payment deadlines for credit card bills. Insurance agencies should also give priority to compensate customers infected with the novel coronavirus.

Fourth, we will increase financial support for enterprises and institutions in the front lines of the epidemic prevention and control work. Enterprises and their staff are working extra hours now to produce masks, protective suits and medical disinfectant, so we must provide strong financial support for them. We have also collaborated with hospitals, medical scientific research institutions and enterprises to adopt a series of measures, such as reducing and cutting service charges, simplifying business procedures and opening up express channels. In addition, we are giving full play to the joint efforts of bank credit as well as insurance and financing guarantees to provide preferential financial services for enterprises in the front line of the epidemic prevention and control work. 

Fifth, we will make efforts to provide financial services to enterprises deeply affected by the epidemic. Sectors such as wholesale and retail, accommodation and catering, logistics and transport, culture and tourism and others have been affected more by the epidemic, and enterprises in these sectors are facing difficulties. Therefore, we are requiring that banks refrain from blindly withdrawing, cutting off or suppressing loans. As for the regions greatly affected by the epidemic in particular, we must provide them with more preferential regional financing policies and improve measures for internal fund transfer pricing, so as to enhance the financial supply capacity of areas seriously affected by the epidemic. 

Sixth, we will maintain a stable financial market by encouraging banking and insurance institutions to implement market-oriented and law-based measures to help some listed companies overcome difficulties. They are encouraged to actively participate in currency market financing, moderately increase bond investments, and further increase the number of wealth management companies. Just now, a friend from the media asked a question about a reasonable extension of the rectification and transition period of the stock asset management business, and Mr. Pan gave his answer. We are now conducting an internal evaluation based on the actual situation and will announce our findings as soon as possible. We will properly increase the upper limit of the equity investment of insurance companies, guard against and ward off liquidity risks of stock pledges so that we can maintain the stability of the entire financial market.

In addition, the banking and insurance industries are playing an active role to fulfil their social responsibilities proactively and effectively. Besides strengthening our ability to provide capital to areas where it is needed, we are giving priority to the financial needs of companies that produce medical equipment, drugs, protective suits, surgical masks, and disinfection supplies, especially those that conduct vaccine research, and offering preferential interest rates and special loan limits to them. According to preliminary statistics, our cumulative credit investment in this area has reached more than 210 billion yuan. Acting on the principle of handling special cases with special methods, we established a payment protection mechanism to ensure the smooth transfer of emergency funds. We also set up special working branches and provide door-to-door services for people quarantined at home. For enterprises and individuals who have been seriously affected by the outbreak, we offer them flexible repayment arrangements. Insurance companies also offer special services: quick claims, pre-claims for special cases, expansion of the scope of liability, simplified claim requirements, relaxed restrictions of claims, and improved efficiency of claims. To reduce patients' worries, some insurance companies have given advance compensation or medical expenses to severe cases undergoing medical treatment. 

Banks and insurance institutions also actively donated to the virus-hit areas. According to incomplete statistics, as of yesterday, banks and insurance institutions and associations have donated more than 1.8 billion yuan to affected areas. Some insurance companies are offering free insurance to the medical staff working in the front line. Should something untoward happen to them, they are guaranteed compensation ranging from 200,000 yuan to 1 million yuan per person on average. This shows the insurance companies' concern for human welfare. The youth in the financial system actively contributed as well. According to the statistics, their donation now stands at 80 million yuan. A large amount of medical supplies were also donated for the protection of staff and people. To fight against the outbreak, we also turned to the overseas branches of banking insurance institutions to purchase protective medical supplies.

Hu Kaihong:

Today's press conference is hereby concluded. Thanks to our four speakers. Thank you all.

Translated and edited by Zhang Jiaqi, Li Xiao, Yan Xiaoqing, Wang Yanfang, Gong Yingchun, Lin Liyao, Zhou Jing, Wang Yiming, Zhu Bochen, Zhang Junmian, Cui Can, Zhang Rui, Chen Yinjun, Wu Jin, Li Huiru, Guo Xiaohong, Wang Qian, Fan Junmei, He Shan, Wang Wei, Huang Shan, Kenneth Teh Chiu Soong. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Lian Weiliang, vice chairman of the National Development and Reform Commission; 

Tian Yulong, chief engineer of the Ministry of Industry and Information Technology; 

Liu Xiaoming, vice minister of transport; 

Wang Bingnan, vice minister of commerce; 

Li Bin, vice minister of the National Health Commission; 

Gan Lin, vice minister of the State Administration for Market Regulation.

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office

Date:

Feb. 3, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media, good morning. Welcome to the press conference on the provision of key medical supplies and daily necessities for the prevention and control of the novel coronavirus pneumonia outbreak. We have invited Mr. Lian Weiliang, vice chairman of the National Development and Reform Commission; Mr. Tian Yulong, chief engineer of the Ministry of Industry and Information Technology; Mr. Liu Xiaoming, vice minister of transport; Mr. Wang Bingnan, vice minister of commerce; Mr. Li Bin, vice minister of the National Health Commission; Ms. Gan Lin, vice minister of the State Administration for Market Regulation.

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

Lian Weiliang:

Ladies and gentlemen, friends from the media, good morning.

There has been wide-ranging attention on the novel coronavirus pneumonia outbreak. The CPC Central Committee and the State Council places great importance on the prevention and control of the epidemic and the livelihood of the people living under its shadow. General Secretary Xi Jinping chaired a meeting of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee for an investigation into the situation on the first day of the Lunar New Year and gave major instructions on the work needed to deal with the outbreak. He called for firm confidence, unity in times of difficulty, scientific prevention and control, and precise measures. He also emphasized the need to guarantee market supply, ensure the supply of various materials in Hubei province and Wuhan city, safeguarding the normal basic life of the general public, and winning the battle of epidemic prevention and control. Premier Li Keqiang also chaired the meetings of the central leading group on responding to the novel coronavirus pneumonia outbreak, and made systematic plans for inter-agency prevention and control as well as for the supply of various materials. On Feb. 1, he paid a visit to a platform for the provision of medical supplies.

After the outbreak of the epidemic, especially since the implementation of more stringent prevention and control measures by Wuhan on Jan. 23, logistics and supplies were affected. People placed a lot of attention on securing a constant supply of daily necessities, and there were also some concerns. There have also been temporary increases in the demand for some daily necessities and a notable rise in prices. In response to the situation, the central leading group set up an inter-agency task force for joint and quick coordination. They went all out in their efforts to increase the supply of daily necessities, set up green channels for the transportation of food, vegetables, medical materials and other necessities, and spared no efforts in guaranteeing the supply of daily necessities in priority regions including Wuhan. In the spirit of solidarity and mutual assistance, various localities and relevant enterprises also provided selfless support in supplying daily necessities to the people in Hubei province and Wuhan city.

Through the concerted efforts of various sides, the aggregate supply of daily necessities in Wuhan city and Hubei province is secure, and after the temporary increases, prices are now coming down. The supply to other regions of the country is also adequate and secure. That being said, problems such as a lack of coordination have also emerged and require timely resolution. For example, the supply of different types of fresh vegetables is not varied enough, the stocks of certain daily necessities are not replenished in a timely manner due to slow logistics, and the transportation of certain materials are not optimal because of epidemic control requirements. Enterprises that produce and supply daily necessities also face labor shortage and problems in their industrial chain upon resumption of production. We are now coordinating our efforts to solve these problems.

Going forward, the related departments and local governments will fully implement the decisions and plans of the CPC Central Committee and the State Council, and will introduce more effective measures to ensure the smooth supply of daily necessities.

First, further increasing supplies. For example, we will work with the vegetable-producing provinces, such as Shandong, Jiangsu, Anhui and Guangxi, to better coordinate with Hubei province so as to increase the supply of fresh vegetables. We will also increase the supply of rice, flour and edible oil by coordinating with major companies, such as the China National Cereals, Oils and Foodstuffs Corporation, the China Grain Reserves Corporation and the China National Salt Industry Corporation. We will also increase the supply of frozen food by coordinating with the major production companies. We will also make arrangements to deliver frozen pork from the central reserves into the market. 

Second, resuming production in an orderly way while strictly implementing epidemic prevention and control measures. We will ensure that companies involved in epidemic prevention and control and those that impact the national economy and people's livelihood will resume production as soon as possible. This would include companies in the sectors of energy supply, transportation, logistics, city operations, medical materials production and those supplying daily necessities. We will also push for the resumption of major projects, major engineering construction and the operations of companies with the right conditions as quickly as possible.

Third, keeping logistics and transportation unimpeded. In order to ensure that aid materials can be sent to Hubei province successfully and to reduce the risk of cross-infection, transport authorities have set up road transport transit service stations in five existing logistics parks in Hubei province. This has been done so that cargo can be unloaded more efficiently and vehicles can return as soon as possible. We will also enhance the building of green transportation channels in Hubei province so as to improve the efficiency of transportation as well as the redistribution of materials. We will give priority to vehicles transporting medical materials and daily necessities and they will not be required to stop, undergo checks or pay tolls.

Fourth, guaranteeing the factors for production. We will help address the difficulties that companies may face during their resumption of production, such as challenges related to labor supply, energy supplies, as well as financing and industrial chains. We will help Hubei province deal with the problems of resources, transportation and dispatch so as to guarantee safe and stable supplies of coal, power, petroleum and natural gas.  

Fifth, enhancing monitoring. We will check the supplies of daily necessities in various areas and will closely monitor the daily levels of consumption of vegetables and food in Hubei province as well as in other major regions to address any potential supply problems on a timely basis.

Sixth, improving our reserves. We will focus on our reserves of winter and spring vegetables and their delivery to major northern cities. We will also implement and improve the government's temporary reserves by following the principle of storing surplus supplies for future use and using our reserves only when necessary. This will enable us to ensure the supply of daily necessities to the greatest extent possible.  

The provision of daily necessities is of crucial importance to people's daily life as well as prevention and control of the epidemic. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the inter-agency task force for the supply of daily necessities led by the National Development and Reform Commission and the Ministry of Commerce will work with the relevant departments and local governments to ensure the supply of daily necessities and win the battle against the epidemic. Thank you.

Xi Yanchun:

Thank you Mr. Lian. Next, I'll now give the floor to Mr. Tian Yulong.

Tian Yulong:

Ladies and gentlemen, friends from the media, good morning. The spread of pneumonia caused by the novel coronavirus (2019-nCoV) has been severely affecting people's health and threatening their lives. Since the epidemic's outbreak, both the CPC Central Committee and the State Council have attached great importance to it. General Secretary Xi Jinping is personally commanding and deploying the prevention and containment efforts, stressing that these are currently the top priority.

In order to act as soon as possible in accordance with the deployment of prevention and containment, we have mobilized resources in every province and city, as well as all industries and sectors, to comprehensively secure emergency medical supplies, especially those urgently needed in Wuhan and Hubei. Under the leadership of the leading group of the CPC Central Committee on the prevention and control of the novel coronavirus outbreak, the State Council medical supplies group has been established out of the joint prevention and control mechanism. The Ministry of Industry and Information Technology has taken the initiative in securing the production of key medical supplies, including medical protective clothing, goggles, eye protection, face masks, disinfection and sterilization supplies, negative pressure ambulances, as well as infrared thermometers. We have also been coordinating the urgently needed materials. All the group members are working in a coordinated manner and are taking their own responsibilities. The industry and information technology systems of every province and city have been connected to jointly step-up efforts in ensuring medical supplies focusing on Wuhan and Hubei. 

As the Spring Festival took place during these more than 10 days of working on the emergency medical supplies, most of the medical material suppliers and logistics systems were on vacation. As such, it has been very difficult to resume production during this period. The Ministry of Industry and Information Technology, with help from relevant parties, has adopted four measures to effectively secure the supply of medical materials.

First, we have been organizing relevant companies to resume and further expand production as soon as possible. Since Jan. 21, the Ministry of Industry and Information Technology has sent seven successive public telegrams to every province and city, specifically deploying material supplies regarding the epidemic prevention and control. We are urging medical material suppliers to resume production as soon as possible, and are strengthening the integrated management and deployment of major medical supplies. 

Second, we have sent commissioners relevant companies to strengthen the coordination and supervision of production. In order to implement the requirements of the State Council, task forces led by 30 senior government officials have been sent to major medical supplies companies to work with local systems concerning industry and information technology, as well as the administration of medical products. We have been helping these companies coordinate and resolve issues concerning raw materials and logistics, so as to effectively increase valid supplies. 

Third, we have established a national dispatch platform for major medical supplies. In accordance with the CPC Central Committee's guidance on improving the coordination of medical supplies, the platform has been established to collect, analyze and monitor statistics on the production capacity, output, inventory and relevant logistics of medical supplies, thereby organizing dispatches accordingly. The effectiveness of the dispatch of the supplies has been improved through the use of information technology. 

Fourth, we have been actively seeking international supplies of medical materials. In order to make up for the domestic shortage of urgently needed materials, we have been organizing international procurement under the support of relevant government bodies. Many companies got a large number of urgently needed medical supplies from other countries through procurement or donation. In the meantime, the Ministry of Industry and Information Technology has been working with the National Health Commission and the National Medical Products Administration to accelerate the mutual recognition between foreign and Chinese standards of medical supplies, so that the exported medical products under EU, Japanese and U.S. standards can also be applied to some fields in China.

Premier Li Keqiang visited the Ministry of Industry and Information Technology and made an inspection on Feb. 1, putting forward specific requirements for our work in securing major medical supplies. Li stressed that now is a critical moment for the prevention and containment of the epidemic, and that securing key medical supplies in Wuhan and Hubei remained the top priority. As such, Li noted that we should continue to coordinate the supply of urgently needed materials, and every relevant company should work at full capacity and spare no effort to ensure the quantity and quality of the medical supplies.

Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, as well as the deployment of the leading group of the CPC Central Committee on the prevention and control of the novel coronavirus outbreak, and the State Council's joint prevention and control mechanism, the Ministry of Industry and Information Technology will work with our member organizations as well as every province and city to effectively organize and secure the production of major medical supplies, actively mobilizing all sectors of society to resume, expand, and improve production capacity. We are confident that we will be able to successfully complete the task of securing medical supplies; we will be able to win the fight against the epidemic; and we will be able to protect people's lives and health. That's all for my introduction. Thank you.

Xi Yanchun:

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

Lianhe Zaobao:

I have two questions. First, there are some reports saying that materials in Hubei province – especially medical supplies at the frontline – are in serious shortage. Some people have reflected that because of a shortage of test reagents, a number of suspected novel coronavirus cases cannot be confirmed at the earliest possible time. Could you give us more information about the supply of materials at the frontline? Is the situation serious? Are the material access channels smooth? Second, we are all being told to wear face masks, but we have heard that all over the country it is difficult to purchase masks. Could you tell us when this issue will be resolved? Thank you.

Tian Yulong:

Thank you for your questions. Regarding your first question, generally speaking, the situation of material shortages in Hubei has been significantly alleviated, and we define the current stage as "tightly balanced." Just now, I spoke about the supply of materials; we are resuming work and production, but it will still take some time to restore full production capacity.

Here is some data for you. By 24:00 on Feb. 2, we have coordinated domestic medical supply companies to send a total of 154,500 protective suits to Hubei province, of which 131,200 have arrived. In addition, 133,600 N95 face masks have been delivered. According to new division of labor, the National Development and Reform Commission will guide the overall work regarding face masks, and we will actively cooperate with them. Up to now, 130,000 N95 face masks have arrived. As for the question of face masks, Mr. Lian will give you more information later. So far, 82 fully automatic infrared monitors have been sent to Hubei, of which 62 have arrived.

What I want to stress here is that the production capacity in Hubei province has also recovered very quickly, especially concerning medical supplies such as protective suits and goggles. Since Hubei is an important production base for medical supplies in China, the recovery of capacity there will definitely alleviate the shortage of supplies on the frontline. However, the supply of protective suits and N95 face masks are still in a "tightly balanced" stage. Under the deployment of the State Council, the supply connection between Hubei and other provincial regions will remain close and precise.

Regarding your question about test reagents, the nucleic acid test is a mature testing measure for infectious diseases: hospitals and the health system purchase the test reagents directly from authorized enterprises. Theoretically speaking, there is no supply shortage of test reagent kits; but due to limited time and production resumption, we have previously faced some difficulties. However, at present, production capacity has recovered. As of Jan. 21, daily production had reached 773,000, which is 40 times the number of suspected cases, and can generally meet the needs. Since the recovered production capacity at present only accounts for 60%-70% of the total capacity, our main work in the future will still focus on resuming production.

As for your second question, the total production capacity of face masks in China has reached over 20 million per day, which is the highest of any country in the world. Overall, it will still take some time to recover the production capacity for N95 and surgical masks. Mr. Lian will provide you with more information. Thank you.

Lian Weiliang:

I would like to share more information about the supply of medical face masks. The shortage of some medical resources has triggered huge public concern and the Party Central Committee and the State Council places great importance on the issue. General Secretary Xi Jinping has given important instructions on various occasions. The day before yesterday, Premier Li Keqiang inspected a national coordination center for key medical supplies used in epidemic prevention and control and helped resolve their most urgent problems. Mr. Tian just said that the National Development and Reform Commission is now working with the Ministry of Industry and Information Technology to coordinate the allocation of medical face masks. As a result of this, the allocation and availability of medical resources has more than doubled in the past two days.

To address the lack of face masks, we will step up our efforts in two aspects. First, increasing supply is a fundamental solution. Second, we should call for the scientific and rational use of face masks. To increase supply, we are now devoting all our efforts, day and night, to expand production capacity and increase production. As a result, important progress has been made. For example, N95 masks for medical protective purpose are in high demand. Many tend to consider the worst-case scenario and keep in reserve more masks than they can actually consume. Given that, by last night we managed to more than double our production capacity by preparing raw materials and starting to increase production and supply. Many enterprises worry about overcapacity in the future, so we have made it clear that the government will purchase and stockpile any excess products after the epidemic ends. With that in mind, enterprises can run now at full capacity as long as they meet standards. Also, more importance should be attached to the scientific and rational use of face masks. We call on the public to use face masks of different functions according to their specific needs, and avoid overuse. We do not encourage people to use valuable medical supplies for only general protective purposes. In this regard, we call on the press to help guide the public based on expert advice. As long as all parties work together, we will soon solve this problem.

CCTV:

What is the current state of supply of daily necessities, such as grain, oil and vegetables, across the country? What is the price of these goods now? As the Spring Festival holiday ends, the demand for meat, eggs, milk and daily necessities is increasing in large and medium-sized cities, but many small and medium-sized enterprises are still operating below their normal productive capacity. How can we secure a stable supply of daily necessities? Thank you.

Lian Weiliang:

To measure the supply of daily necessities, price is the most important benchmark. You mentioned the price of goods in your question, so I guess you understand the key point. Data from supermarkets and marketplaces in 36 large and medium-sized cities on Feb. 2 shows that the average retail prices of pork, beef, lamb and eggs have dropped by 0.3%, 0.6%, 0.8% and 1.3% respectively from their previous highs. The data also shows that the average price of 15 different vegetables dropped by 6.2%. Although some products such as chicken saw price increases, the fluctuation margin is still acceptable. Taking Wuhan in Hubei province as an example, the prices of some daily necessities surged when traffic control measures were implemented. However, prices have now fallen. The price of pork in supermarkets and marketplaces has dropped by 0.7% from its previous high. The average prices of 15 different vegetables dropped by 3.8% while the prices of beef, lamb, chicken and eggs remained the same.

From the supply perspective, most of the necessities across the country, especially the supply of food, are guaranteed. China's total grain output remains stable and has surpassed 650 million metric tons for the fifth consecutive year. We have a sufficient supply of stock. The stock of rice and wheat from all enterprises has surpassed China's total domestic consumption in a year. The production of beef, lamb, poultry and eggs has also increased to varied extent. Pork production has steadily recovered. Regarding the supply of vegetables, we also have an adequate inventory. The cultivation area of vegetables exceeded 5.6 million hectares, an increase of 2% year-on-year, and the output is estimated to increase by over 2%. There are some short-term supply shortages in some areas which are mainly caused by the difficulty in distribution due to the strict implementation of epidemic prevention and control measures. Several areas still face problems with the timely distribution of vegetables to markets. We are addressing these problems with targeted solutions.

With respect to daily necessities, in particular food, our supplies are sufficient. Everybody knows that China's food-processing capacity is very large, and its utilization rate is very low under normal circumstances. As long as production resumption and logistics distribution are well organized under the strictly-implemented measures for epidemic prevention and control, the provision of food and other living supplies will not be a problem.

In response to the resumption of work and production, as well as preparing for a potential increase in peoples' living needs after the Spring Festival holiday, we will focus on four areas of our work: increasing supplies, stabilizing prices, maintaining good social order, and prioritizing the needs in key areas.

In view of increasing supplies, we'll ensure that they will be provided to a level that exceeds normal demand. In other words, we'd rather have excessive stockpiles, which may be little or not used at all, than face shortages. By strictly following prevention and control measures, we will give priority to increasing supplies, cooperating with labor organizations to ensure that the workforce returns to their jobs and restarts production as well as to guarantee the smooth operation of logistics. For instance, we are jointly working with six provinces neighboring Hubei to secure an adequate supply of local vegetables. So far, there are nearly 60,000 metric tons of vegetables in the inventory, which can ensure a sustained supply of about 8,000 metric tons to Wuhan every day. In addition, the storage of 10,000 metric tons of frozen pork from the central reserve in the Shanghai Port is ready to be sent to Wuhan when needed.

To secure stable market prices, we will closely monitor the price indicators of daily necessities. Once there are obvious fluctuations, we will find the causes and launch targeted measures, especially the plans to guarantee constant supply.

To maintain stable social order, we'll continue to keep a close eye on the market, punishing those who violate the laws by spreading price-hike rumors or scheming or colluding to drive up prices. In particular, product quality supervision should be strengthened and we will impose severe penalties on people who sell counterfeit or shoddy products in accordance with the law.

Regarding our priorities in the key areas, we will prioritize demand from Wuhan, from Hubei as well as from severely affected regions where efforts to prevent and control the disease have been strained.

All authorities are coordinating and cooperating with each other in line with their respective roles and duties. Now, the Ministry of Commerce (MOC) and the State Administration of Market Regulation will give you more specific information. Thank you.

Wang Bingnan:

I'd like to say something more about this issue. The supply of daily necessities has been affected to some extent since the outbreak of the epidemic. Over the past few days, some regions have faced a temporary shortage in daily necessities and the intensified situation has drawn great concern from governments at all levels. To address the problem, the MOC has joined hands with the National Development and Reform Commission as well as local governments to take immediate action by asking the retail sector to increase the frequency at which they restock. Now, the situation seems to have been alleviated. According to the data monitored by the MOC, the supply of daily necessities is sufficient and their prices remain stable.

In addition to safeguarding supplies across the country, we have prioritized the demand from Hubei province, and of Wuhan in particular. The MOC has mobilized other cities and provinces to lend a helping hand to support Hubei through its difficult time. So far, the supply of daily necessities to Hubei has increased and the sales and inventory of vegetables have been restored to their normal levels. According to the Wuhan Administration of Commerce, on Feb. 2, the two biggest wholesale markets — Baishazhou and Sijimei — had 8,772 metric tons of vegetables in their combined stock. The three chain supermarkets —Wushang, Zhongbai and Zhongshang — had a stockpile of 2,155 metric tons of vegetables on Feb. 1, up 19.2% from three days earlier. At the same time, retail prices fell by 14%.

As you mentioned in your question, the demand for daily necessities in medium and large cities will continue to grow after having been affected by the prolonged Spring Festival vacation and the rush of people returning to work in the cities. Moreover, the logistics in some regions remain bottlenecked, there is a shortage of staff in commercial and trade companies and the capacity of small and medium enterprises cannot develop to its fullest extent. The MOC has placed great importance on these problems. We resolve to implement the planning decisions by the Central Committee of the CPC and the State Council, focusing on addressing problems and upholding bottom-line thinking. We have already made a plan to further guarantee the supply of daily necessities, mobilizing and directing the personnel involved in this issue to be more accountable for their work in the different regions. In this way, we will ensure that local markets keep a stable supply of necessities and goods.

We are carrying out work in the following four areas:

First, we are organizing and mobilizing people and entities to resume work. We call on local governments to encourage small and medium-sized businesses to open their doors and start operations as soon as possible. This would include getting staff to return to work; implementing internal prevention and control measures such as ensuring adequate ventilation, disinfection, and professional guidance for personnel at offices and work sites; and increasing the supply of basic living services such as shopping and catering for the public. I emphasize here that in the face of this developing epidemic, all local governments must conduct timely and full evaluation as well as hierarchical management and control. They cannot arbitrarily stop or close food markets and other places of business operation but must ensure the steady supply of daily necessities for the people.

Second, we need to strengthen joint guarantees and joint controls. We will strengthen the cooperation mechanism for joint guarantees and controls in Hubei and the surrounding nine provinces, autonomous regions and municipalities, and further mobilize all forces to ensure the steady supply of daily necessities in Hubei province, especially in Wuhan city. Director Lian just said that over the last few days, Shandong, Chongqing, Guangxi, Jiangxi, Yunnan and other places have transported more than 2,000 metric tons of vegetables to Wuhan, alleviating the tight supply situation there. The Ministry of Commerce will also send a special working group to Wuhan to carry out on-site coordination and guidance in response to any new situations and problems that may affect the local market supply.

Third, we need to do a good job in matching demand with existing supplies and ensuring that supplies are transported to the areas in need. The Ministry of Commerce has identified a number of key companies which can help in the nation's effort to guarantee the steady supply of goods and necessities and has also established a guarantee mechanism for hundreds of large-scale distribution companies. As of Feb. 1, the 50 large agricultural wholesale markets across the country could transfer vegetables and other goods in a relatively large scale to the areas in need. We compiled daily statistics: On Feb. 1, there were 30,000 metric tons of vegetables, 12,000 metric tons of meat, and 268 metric tons of eggs that could be transferred to other places. Once demands are raised by localities, the Ministry of Commerce will immediately organize the process of matching supplies with their needs and start the transportation of goods and necessities to affected areas so as to meet their demands as soon as possible. Regarding the problem of logistical bottlenecks in some areas, the State Council has made it clear that all localities must not block the passage of daily necessities without its prior approval.

Fourth, we will strengthen monitoring and guidance. We will make further efforts to ascertain the maximum supply of key daily necessities such as vegetables, find and handle abnormal situations in which certain items go out-of-stock in a timely way. We will release information about market supply, guarantee of supplies and price stabilization, strengthen guidance, stabilize expectations, and strengthen consumer confidence.

Kyodo News:

What's inter-provincial traffic like? And what role does e-commerce play in the guarantee of supplies?

Liu Xiaoming:

Thank you for your question. First of all, as for the inter-provincial traffic, the operation of the national highway network is generally orderly. In order to implement staggered shifts and organize logistics and passenger services safely and in an orderly fashion, we have extended the "free travel policy" for minibuses from today to Feb. 8. At present, the guarantee and operation of the national road network is also good. Since the Spring Festival, traffic on the national highway network has decreased significantly. On Feb. 2, the total volume of road network traffic had decreased by nearly 80%, and the operation of the overall road network was very reliable. However, recently, in some provinces, the need for epidemic prevention measures such as the measurement of body temperature has led to local traffic congestion. The Ministry of Transport and the Ministry of Public Security are coordinating with local transport departments and public security departments to strengthen traffic guidance. They are also working with health departments to increase the number of personnel deployed to measure body temperature and are using double- or multi-detection methods to alleviate traffic congestion.

Meanwhile, we also remind drivers not to occupy emergency lanes, and ensure the smooth transportation of important products and daily necessities such as medical supplies.

Overall, daily supplies are transported in an orderly way. Since the coronavirus outbreak, the Ministry of Transport, in accordance with the deployment of the State Council's joint prevention and control mechanism to respond to the epidemic, has worked hard to establish a joint mechanism with all provinces to ensure smooth transportation. The ministry aims to better resolve the issue of emergency transportation, and in particular to guarantee the transport of epidemic prevention and control materials, living materials such as livestock and poultry needed by Hubei province, as well as important materials needed for production such as electricity, coal and liquefied petroleum gas to the affected areas. Yesterday from 0:00 a.m. to 24:00 p.m., 17,000 vehicles carrying emergency supplies had gone through the green channels on expressways across the country. Of that total number, 8,362 vehicles carrying emergency supplies were driving along the expressways of Hubei province, and 2,625 were driving on the expressways around Wuhan city. The entire transportation system guaranteeing the efficient delivery of necessities and materials is working in an orderly manner.

Liu Xiaoming:

I think the e-commerce aspect you highlighted is also very important. Under normal circumstances, the Spring Festival is usually an off-season period for express courier services. However, in order to combat the epidemic during the Spring Festival this year, the national postal department rallied postal and express delivery companies together. These companies tapped on their extensive transportation networks, quickly opened international and domestic routes, secured smoother land transportation, and ensured the transportation of emergency relief supplies and daily basic supplies to people in the key affected areas such as Wuhan. Enterprises such as China Post, SF Express, and JD.com also used their respective advantages to safeguard the basic needs of the local people during the Spring Festival. Subsequently, 13 large express delivery companies opened green channels for relief supplies. As of Feb. 2, China Post organized the operation of 32,000 postal vehicles and 5 special postal airplanes. The special planes transported 49,000 cases of epidemic prevention materials such as masks and medicines, which greatly eased the pressure on transport. Thank you.

Wang Bingnan:

I would like to add a few words. As you know, e-commerce, which features online transactions and offline delivery, is one of the most important ways that Chinese consumers now shop for goods and services. Since the coronavirus outbreak, online shopping can not only meet people's daily needs, but also reduce the risks of infection brought about by mass gatherings of people.

Since the outbreak, the Ministry of Commerce has galvanized 11 major e-commerce companies in China to play a unique role in guaranteeing market supply. The work has been done in the following three aspects.

First, we have actively boosted supply. As vice minister Liu Xiaoming said just now, several e-commerce companies, such as JD.com, Wumart and SF Express, have used their global supply chains to make cross-border procurements of face masks, protective gowns and goggles of which there was a dire shortage. Meanwhile, they have strengthened cooperation with upstream suppliers to encourage manufacturers to resume production as soon as possible to increase medical supplies. Consumers can now buy those much-needed supplies online.

Second, we have created smoother delivery channels. Coordination between e-commerce and logistics and delivery services has been strengthened, with a large number of deliverymen working round the clock on the front-line. During the Spring Festival, we made sure that online stores remained open and offline delivery services operated in a timely manner. In particular, a slew of e-commerce companies selling seasonal fresh food made full use of their pre-positioned warehouses and brick-and-mortar stores to make doorstep deliveries, which met people's daily needs.

Third, we have guaranteed shopping safety to avoid infection. A number of e-commerce companies have adopted a new "zero-contact" mode of delivery to improve safety during the delivery of goods. In this method, deliverymen will put the goods at a certain place designated by customers to avoid direct contact and reduce the risks of infection. This mode of delivery originated from Hubei province and has been popularized across the country. Thank you!

Southern Metropolis Daily:

My question is about the supply of materials such as face masks, rice, flour and cooking oil. Since the outbreak, and in the face of a shortage of supplies, some manufacturers have been involved in activities such as price gouging, hoarding and counterfeiting, which has caused fear-induced purchases and aggravated the demand-supply tension. What will the relevant departments do to stop these activities in order to guarantee market stability? Thanks.

Gan Lin:

Thanks for your question. Price maintenance and quality and safety supervision for supplies including face masks, rice, flour, cooking oil, vegetables and fruits during the battle to prevent and control the epidemic is a key task for departments involved in market regulation. The primary political task of these departments is to crack down on epidemic-related illegal activities in accordance with the law, safeguard market order and people's interests, and contribute to the victory in this battle.

In line with the planning and requirements set by the CPC Central Committee and the State Council, the State Administration for Market Regulation has adopted extraordinary measures to ensure the steady supply of medical necessities such as face masks as well as goods essential to people's livelihoods such as rice, flour, cooking oil, vegetables and fruits. This is in addition to their work to improve market regulation on a daily basis. By holding ourselves to the highest standards, implementing the strictest measures and deploying the most resources, we have strengthened price stability and the supervision of the quality of products. We have also improved monitoring, inspection, evidence-based investigation，law enforcement and increased the exposure of illegal activities. We have issued urgent notifications to all market regulation departments across the country, released public notices to ensure price maintenance for epidemic-related supplies and set guidelines for cracking down on price gouging to make it clearer for law enforcement. As of Feb. 1, 390,000 law enforcement officers across the country had been mobilized and 1,413 cases of price gouging had been handled. I would like to raise two examples. The first one involved a drugstore that was fined three million yuan by the market regulation department of Fengtai district, Beijing municipality for hiking the prices of N95 masks. The second one involved another drugstore that was slapped with a three million yuan fine for hiking the price of masks by the market regulation department of Jinnan district, Tianjin municipality. Both stores faced the maximum punishment according to law. Using an iron hand, we will crack down on anyone who hikes prices to profit from the epidemic. You can check out the details of other cases which have been released on the websites of the State and local administrations for market regulation.  

The price order in the market is now generally stable. In addition to price, the quality of goods is of great importance, especially that of epidemic prevention products like masks and general commodities necessary for people's livelihoods, including rice, flour, edible oils, vegetables and fruit. With this objective, the State Administration for Market Regulation, jointly with the Ministry of Public Security, the National Health Commission and other relevant departments, launched a joint law enforcement campaign yesterday to crack down on the illegal production of masks and other protective products. This was done to preserve the market order and safeguard the interests of the general public during the epidemic. We will make sure that all cases are investigated and dealt with strictly and rapidly in accordance with the law, and all wrongdoings are severely punished regardless of who is involved. Last night, the Zhejiang Provincial Administration for Market Regulation investigated and dealt with a counterfeit mask case involving illegal online sales of 9.12 million yuan. The case has since been transferred to the relevant public security departments. We will continue to strengthen quality supervision of masks and other epdeicmic prevention products.

The market regulation department is maintaining supplies and stabilizing prices, by doing everything possible to play to our functional advantages. We are also contributing to the production and supply of epidemic prevention products and daily supplies in numerous innovative ways. First, special measures have been taken. 

We are in charge of market admission, business registration and the issuing of production permits. As of now, masks are in short supply, so it is likely some new enterprises will offer extra production capacity. When that happens, our administration will prioritize these affairs and open fast-track channels for them. As long as they meet our requirements, we will fast-track the completion of their business licenses and production permits so the enterprises can start production immediately. We have already implemented this measure in Haidian district, Beijing. In addition, Shenzhen has accelerated domestic sales of commodities originally produced for export. The export-oriented masks, once meeting the medical criteria of the importing countries, can be reregistered by our market regulation department and marked with Chinese tags to be sold domestically. We have put in a lot of effort via multiple means to guarantee the supply of goods in shortage. 

Second, we have given full play to the positive role of joint social governance. The State Administration for Market Regulation has set up a communication platform between market entities and consumers and launched campaigns to guarantee prices, quality and supplies. We are advocating for enterprises to act with integrity and self-discipline. We need them to set an example to the whole society and pass on the torch of conscience, confidence, compassion and determination. By focusing on consumer demand, we are mobilizing medical device producers, decontamination companies and online and offline platforms to take part in our campaign. At present, 33 leading enterprises have made promises to guarantee prices, quality and supplies. The administration has established the secretariat of the campaign and launched a website to report on specific measures and achievements of the campaign involving market regulation departments of all levels, as well as production, operation and service businesses.

In the process of safeguarding the market order, we've got a lot of support and participation from the whole society, especially the media. In the future, we hope to welcome more public oversight on market entities and our law enforcers. Thank you.

Bloomberg:

I'd like to ask what kind of influence the novel coronavirus outbreak will have on China's economy. For example, how will it affect the economy in the near future or next month? And what measures will China take to maintain investors' confidence in China?

Lian Weiliang:

Thanks for your questions. Your questions concern the overall situation. Judging from the current situation, the epidemic has put an increasing dampener on the economy, especially on consumption sectors including transportation, culture, tourism, hotel and accommodation as well as catering and entertainment. At present, the passenger volume during the Spring Festival travel rush, or "Chunyun" in Chinese, has decreased significantly and revenues from box office movie ticket sales, tourism and catering have also declined sharply year-on-year. But at the same time, there has been fast growth in burgeoning sectors such as online shopping and online food and entertainment businesses.

The impact of the novel coronavirus outbreak on the economy depends on the progress and effectiveness of our epidemic prevention and control work. Here, I wish to stress that the novel coronavirus epidemic will only have a temporary impact on China's economy, and the country's good economic fundamentals for long-term growth remain unchanged. Some people compared the coronavirus outbreak to the 2003 SARS epidemic and made economic loss projections based on the SARS damage. China's current economic strength, resources and abilities to deal with emergencies have been significantly strengthened since then, and we are fully confident in and capable of winning the battle against the epidemic. At present, our most urgent task is in accordance with the decisions made by the Central Committee of the Communist Party of China (CPC) and the State Council to take measures in an effective, orderly, scientific and accurate way to prevent and control the outbreak, and make sure that everything returns to normal as soon as possible.

As for the next steps to respond to the impact caused by the outbreak, we will put into practice the decisions made at the Central Economic Work Conference, and remain committed to the general principle of pursuing progress while ensuring stability, as well as to the new development philosophy of high-quality development. We will coordinate all work to maintain stable growth, advance reform, make structural adjustments, improve living standards, guard against risks, and ensure stability. As part of the coronavirus outbreak prevention and control work, enterprises that produce key medical supplies and daily supplies or are linked to sectors such as energy, transportation, city management, are encouraged to return to work to speed up production in order to ensure a stable supply of key necessities and materials. Companies that are responsible for major projects are also encouraged to return to work as soon as possible. In addition, we will roll out polices to aid the companies that are seriously damaged during the epidemic. More importantly, we should enhance our efforts to bolster weaknesses in key areas and links in need of attention, as well as foster new areas of growth. We are confident that together we will definitely win in the fight against the coronavirus. We will maintain stable economic development and create the foundation to complete our building of a moderately prosperous society. Thanks.

Beijing Youth Daily:

In order to curb the epidemic, what kind of financial support and policies have the relevant departments taken? Thanks.

Li Bin:

In terms of policy support, the Ministry of Finance, the Ministry of Human Resources and Social Security, the National Healthcare Security Administration, and the National Health Commission and other departments have rolled out favorable policies or provided funds to local governments and individuals to fight the new coronavirus so as to ensure the prevention and control of the novel coronavirus outbreak.

First, patient treatment. Patients confirmed to be infected with the virus will receive subsidies from the central and local governments for their medical expenses that are not covered by insurance or medical aid. Second, subsidies for medical workers. Medical workers and other personnel involved in preventing and controlling the virus will also be subsidized and those who become infected with the virus while on duty will be compensated. Third, supply of epidemic prevention and control materials and daily necessities. The central government will also provide necessary help to local governments to purchase medical equipment and testing kits to battle the epidemic.

The Ministry of Finance has earmarked a total of 5.4 billion yuan ($769.8 million) to support local governments across the country to prevent and control the epidemic. This includes 1.5 billion yuan for Hubei province, which is the epicenter of the battle. The National Development and Reform Commission has also invested 300 million yuan from the central budget to support the construction of a new hospital in Wuhan, the capital city of Hubei province. This new hospital is designated to treat patients infected with the new virus. In addition, the Ministry of Finance and the National Health Commission spent 60.33 billion yuan in advance to support the development of basic public health services and the prevention and control of the outbreak at the grassroots level. Thanks. 

CNBC:

Many provinces in China announced that the resumption of production would not take place before Feb. 10, and some enterprises have suspended operations. According to statistics acquired by CNBC, exports from these provinces accounted for over 90% of China's tota exportsl. My question is how all of this is affecting international supply chains. Thank you. 

Wang Bingnan:

Thank you for your question. We all know that every January China's imports and exports face greater variation than in other months because of the effect of the Spring Festival holidays. Most foreign trade enterprises resume production and ship their goods and services after the 15th day of the first Lunar month. The novel conoravirus outbreak happened during the holidays, and we have been keeping a close eye on the situation. The Ministry of Commerce has discovered that many foreign trade enterprises are rapidly resuming operations, various departments and local governments are fighting against the epidemic caused by the novel conoravirus and implementing targeted measures to improve the business environment and ease the burdens of all businesses. One perfect example from yesterday's news - the Suzhou municipal government in Jiangsu province introduced 10 policies to support small and medium-sized businesses affected by the epidemic. Actually, China's central authorities and local governments at all levels are now rolling out targeted policies to stimulate exports.   

In the context of the overall sluggish growth in global trade, the international community should work together to overcome these difficulties through concerted efforts. The World Health Organization (WHO) believes that China's epidemic prevention and control work is outstanding, that letters and packages from China are safe, and it opposes imposing travel or trade restrictions on China. We are confident that we can effectively contain the epidemic and finally overcome it. We also believe that governments and market entities at every link of the global supply chain will facilitate trade of China's products and services as well as for the commodities China imports. Thank you.

The Paper:

Just now a reporter raised the issue of the supply of medical products in Hubei, my question relates to the supply of these products across the whole country. Sources confirmed that there is a shortage of supply in other provinces. What about the supplies of emergency medical supplies such as one-piece protective suits, isolation gowns, N95 masks, medical surgical masks, goggles and protective masks across China? In addition, how long after mobilizing medical enterprises to resume full production during the Spring Festival holidays will it take to cover the shortfall of medical products in Hubei and across the country?

Tian Yulong:

Your questions are related to the partial and overall solution. If you look at the big picture, the restoration of production is rapid which ensures that Hubei reaches a "tight balance," This "tight balance" refers to a compromise between the supply of necessary goods and materials to Hubei and Wuhan, which is our key priority, and meeting the demands of other key epidemic-stricken cities as well as the overall national planning. So far, the situation looks optimistic. The resumed production ratio of urgently needed materials is between 60-70%, and the production capacity has moved from a state of emergency to that of a "tight balance." I believe that given our national mobilization and the continuous recovery of the industrial system, we will reach a more stable balance. 

From the perspective of production capacity, priority is given to enterprises which produce protective suits, masks, goggles, temperature measurement equipment, hospital beds and ambulances. We have also promised these enterprises that we will set up a interim collection and storage system with the National Development and Reform Commission. Just now, Mr Lian also said that loans with discounted interest will be guaranteed to encourage enterprises to restore and increase production. Since yesterday, we have reached a consensus with the National Development and Reform Commission and Ministry of Finance to pass this preferential policy for enterprises as soon as possible so as to speed up the restoration and expansion of production. On the whole, we are confident. Our industrial enterprises have exhibited a strong sense of social responsibility. Many people have given up their holidays, worked overtime and some even worked through three straight shifts.  

I believe that with the mobilization of the whole society; various enterprises, especially medical supply enterprises, have entered a state of rapid production. We are ensuring that key supplies reach Wuhan and Hubei, and are proceeding from a state of "tight balance" to "stable balance." Thank you.

Xi Yanchun:

This will be the last question. 

Ta Kung Pao:

Recently there have been several cases of the 2019-nCoV due to gatherings. China is now going to see another spike in traffic as we approach the end of the Spring Festival period and travelers are returning to their places of work. My question is what countermeasures are there to deal with this situation? Thank you. 

Liu Xiaoming:

Thanks for your question. We are now experiencing another Spring Festival travel rush where travelers are returning to their places of work. As such, the CPC Central Committee leading group, which was exclusively set up to deal with the epidemic, has issued the notice regarding the mass return trip after the Spring Festival holiday to strengthen the prevention and control of the epidemic. The Ministry of Transport has earnestly implemented the important instructions by General Secretary Xi Jinping and has made resolute efforts to curb the spread of the virus through transportation and cross infection. As everyone is concerned with the risk of the epidemic spreading during the spike in traffic brought about by people returning to work, we have worked with the relevant ministries and departments and decided to take the following measures:

The first measure is to mobilize all industries and sectors in China and carry out epidemic prevention work in accordance with first-level public health emergency response standards.

The second measure is to strengthen the ventilation and sterilization of public vehicles as well as the checking of body temperatures of travelers. Health departments have also issued a technical manual for the sterilizing of public vehicles and urged local authorities to ensure that transportation hubs and stations are equipped with thermometers. According to the manual, tests to measure the body temperature of drivers, conductors and passengers should be carried out with no exception. It also stipulates that there should be observation rooms and quarantine areas in service areas, ships, stations and wharves if conditions permit; and when any persons are found to have an abnormal body temperature, they should be observed, isolated and handed over in accordance with procedure and with no delay.

The third measure is to cooperate with other departments concerning epidemic prevention, control and quarantine. It is mainly to cooperate with health departments to do a good job in setting up and inspecting health and quarantine stations at public transport hubs and stations. 

The fourth measure is to guide local departments in the control of vehicles driving in and out of Wuhan, Hubei province. In particular, to guide them to carry out necessary inspections on vehicles moving in and out of Wuhan and to ensure the implementation of the one "cut off" and three "not cut off" principle. The one "cut off" principle refers to the need to cut off any channel through which the virus may spread. The three "not cut off" principle refers to the need to ensure that the highway transport network should not be cut off, that emergency supplies and transport routes for the prevention and control of the epidemic should not be cut off, and that the transport routes needed for the conveying of goods and materials necessary for people's daily lives and production should not be cut off. 

The fifth measure is to do a good job in tracing the persons who had close contact with the confirmed or suspected cases traveling on public vehicles. Where confirmed or suspected cases are found on passenger airlines, railway trains, or long-distance passenger transport vehicles, the origins of the infections should be investigated. At the same time, we will guide local transport departments to strengthen communication and cooperation with other departments such as human resources and social security, agriculture and rural affairs, education and so on, to implement the responsibilities of sources of migrant workers, destinations of migrant workers and schools, and to fulfill the responsibilities of governments at all levels, employers and transport enterprises. By taking all these measures, we aim to minimize the risk of the virus spreading during the traffic spike when a vast number of travelers return to their places of work and ensure success in our battle against this epidemic. 

In terms of other relevant work, we welcome supervision from the media. We hope that the media can supervise and urge local governments and enterprises to fulfill their responsibilities and travelers to protect themselves. With joint efforts, we will win this battle. Thank you. 

Xi Yanchun:

We have just had a special Spring Festival holiday without rest. I believe that our friends from media also experienced a tough holiday. I would like to take this opportunity to express my concern for all our journalist friends, especially journalists reporting from the front lines. I hope that everyone will take good of your health and protect yourselves. 

Thanks again to our speakers, and thank you all, too. The press conference is hereby concluded. 

Translated and edited by Zhang Jiaqi, Gong Yingchun, Zhu Bochen, Lin Liyao, Li Xiao, Yan Xiaoqing, Wu Jin, Zhang Rui, Liu Qiang, Mi Xingang, Cui Can, Wang Yanfang, Chen Yinjun, Li Huiru, Guo Xiaohong, Wang Qian, Zhang Junmian, Yuan Fang, Zhou Jing, He Shan, Wang Wei, Huang Shan, Jay Birbeck, David Ball, Kenneth Teh Chiu Soong. 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, minister of the National Health Commission (NHC) and secretary of the CPC NHC Leadership Group

Wang Jiangping, vice minister of industry and information technology

Liu Xiaoming, vice minister of transport

Li Bin, vice minister of the NHC

Chairperson:

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

Date:

Jan. 26, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media, good afternoon. Welcome to the press conference. News media have paid great attention these days to the outbreak of pneumonia caused by the new coronavirus (2019-nCoV). The safety and health of the people, especially of Wuhan residents, have become a shared concern to all of us. Today, we have invited Mr. Ma Xiaowei, minister of the NHC and secretary of the CPC NHC Leadership Group; Mr. Li Bin, vice minister of the NHC; Mr. Wang Jiangping, vice minister of industry and information technology; and Mr. Liu Xiaoming, vice minister of transport. They will explain the joint efforts to tackle the pneumonia outbreak and answer your questions.

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

Ma Xiaowei:

Friends from the media, good afternoon. Since the outbreak of the new coronavirus-related pneumonia, the CPC Central Committee and the State Council have given earnest consideration to prevention and control work. General Secretary Xi Jinping has concerned himself with the pneumonia situation and the treatment of patients, making important orders and instructions on prevention and control work. Yesterday, which was the first day of the Chinese Lunar New Year, the Standing Committee of the Political Bureau of the CPC Central Committee held a meeting on the work surrounding the pneumonia situation. General Secretary Xi Jinping chaired the meeting and heard reports on the prevention and control of the outbreak. It was decided in the meeting to set up a CPC Central Committee leading group to oversee the work, and also send groups to Hubei province and other hard-hit regions to direct the work on the ground. These decisions have made a great impact to curb the epidemic through synergy and coordinated actions. Premier Li Keqiang presided over a State Council executive meeting, making arrangements for the prevention and control of the outbreak with measures typically used for category-A infectious diseases even though the outbreak has been classified as a category-B infectious disease. Vice Premier Sun Chunlan made multiple studies on the issues related to the pneumonia situation, and visited Wuhan to inspect the work and make necessary arrangements. Under the strong leadership of the CPC Central Committee and the State Council, the NHC and other departments within the joint prevention and control network acted swiftly to cooperate on implementing preventive and control measures, with an emphasis on localized administration. We have made efforts in the following areas:

First, we investigated the origin of the infections and offered technical guidance. We had experts evaluate the pathogen test results, and preliminarily identified the new coronavirus in just over a week since the outbreak. Then we issued plans for diagnosis and treatment, emergency monitoring, epidemiological investigation and management, as well as sampling and detection. We developed kits that help facilitate diagnosis, and distributed them to medical institutions after evaluating them so as to improve the efficiency of case detection.

Second, we gave guidance to Wuhan on implementing preventive and control measures. Taking the prevention and control work in Wuhan as the top priority, we set up a front-line working group. It urged local authorities to close relevant markets, strengthen regulation on the breeding, sales and consumption of wild animals, crack down on illegal trade, as well as suspend airports and railway stations to outgoing passengers. We coordinated the transfer of protective clothing, masks, gloves and goggles from the central medical reserves to Wuhan. The Finance Ministry also allocated a total of 1 billion yuan to support Hubei province's battle against the outbreak. We mobilized and deployed medical resources across the country. More than 900 medical workers in seven groups have been dispatched to Wuhan, and medical staff for future rotation are ready to leave for the city. 450 medics from the military have arrived in Wuhan, and eight medical teams comprising more than 1,000 people are on standby.

Third, we strengthened prevention and control work across the country. Currently, a total of 30 provinces have launched the level 1 public health emergency response (the highest level of response). We have drafted and implemented prevention and control measures among communities, launched "grid-style administration" and "blanket management," and kept track of the health situations of people from Wuhan, and worked to manage the health situations of people who have traveled to the area. We also promoted the prevention and control experiences of Beijing and Hebei, in order to discover cases as soon as possible. Passengers who have previously booked trips by air, train, roads and waterways can cancel their trips and get a full refund, and travels of tourist groups have been suspended. Large public gatherings are also restricted to reduce crowds. We have also published public prevention guides, which cover six aspects including travel, family, public venues, public transport vehicle, and stay-at-home medical observation. We also strengthened ventilation, sterilization and the checking of body temperatures in key places and tried to curb the spreading of the virus by public movement. Meanwhile, we intensified market control on wild animals. 

Fourth, we spared no efforts in the treatment of patients. We have revised diagnosis and treatment plans, and released the lists of designated hospitals above-county-level and fever clinics. We have strengthened medical treatment, and strictly followed the rules of "concentrating patients, experts, medical resources and treatment." We have combined treatment of both traditional Chinese and Western medicine, and practiced case-by-case treatment regarding those in critical condition, in order to reduce the number of deaths as much as possible. We implemented medical assistance policies for patients, to ensure that no one is left untreated due to medical expenses.  

Fifth, we accelerated scientific research on the new coronavirus. We have set up a national expert team on related research, and launched emergency projects. We are adhering to the problem-oriented principle, and have carried out scientific research on tracing the source of the virus, screening potential drugs, prevention and control of the disease by using traditional Chinese medicine, treatment of critical cases and research of vaccines. 

Sixth, we worked on information disclosure. Every day before 8 a.m., the National Health Commission releases data of the outbreak that is collected the day before, and organizes experts to popularize prevention measures among the general public. 

Seventh, we deepened exchanges and cooperation. We have informed the World Health Organization (WHO) of the situation of the outbreak and continue to share technical information in a timely manner. We have also shared with the WHO the whole genetic sequencing of some strains. WHO Director-General Tedros Adhanom Ghebreyesus thanked the Chinese government for the measures taken in responding to the outbreak. We also invited WHO experts to visit Wuhan, and organized experts from Hong Kong, Macao and Taiwan to make field trips to Wuhan. After assessing the virus-related information, the WHO decided not to declare it as a "public health emergency of international concern."

The prevention and control of the outbreak is currently in a critical stage. Experts believe that the Spring Festival holiday week is the best window for large-scale quarantine and sterilization measures to work out, and it is also the key period for curbing the spread of the virus in regions outside Wuhan. In the next stage, we will work under the CPC Central Committee leading group overseeing the work, put the prevention and control of the disease in the first priority, give different guidance according to different situations, carry out targeted measures and prevent and control the outbreak in a legal and scientific way. 

Ma Xiaowei:

First, we are keeping a close eye on the situation in Wuhan. We have urged Hubei province and Wuhan city to maintain the most stringent prevention and control measures in accordance with the laws, supervise strict home quarantine for close contacts , reduce various gatherings by the general public, identify and keep cases and suspected cases in quarantine in a timely way, and take strict and resolute measures to curb the spread of the epidemic.

Second, we are keeping a close eye on the whole country. We have mobilized and arranged resources nationwide, strengthened prevention and control in communities, and managed people traveling elsewhere from Wuhan to other provinces within 15 days. We are motivating various communities to identify the people, record their information for community management, and closely observe their health condition. The patient, once detected, has to be transferred to a qualified hospital for quarantine. We are also stepping up efforts like alerting hospitals in counties and townships as well as strengthening the leadership of township governments to curb the spread of the epidemic in rural areas.

Third, we do our best to treat cases. Severe cases are gathered for treatment in the best local hospitals, or safeguarded by teams of local respiratory experts around-the-clock. We are trying our best to reduce severe cases and fatalities by adopting both traditional Chinese medicine and Western medicine in treatment. Medical staff in Hubei province, in Wuhan city in particular, have been fighting on the frontline, trying their best to cure patients and control the epidemic through their hard work, showing universal love. We will send an additional 1,600 plus people in 12 teams over the next two days. Relevant government departments are also mounting efforts to ensure a sufficient supply and timely delivery of materials urgently needed for the prevention and control of the epidemic.

The outbreak of the epidemic is like a call for action, and the prevention and control is our responsibility. We will make full use of the strengths of socialism with Chinese characteristics, apply experience we accumulated in dealing with major public health events over time, rely on the concerted efforts of the medical staff and the general public, and do our best to win the battle against the epidemic. We have the confidence, determination, and the ability to win.

Xi Yanchun:

Thank you, Mr. Ma. Now, let's move on to questions. Please identify which media outlet you work for before asking your questions.

CCTV: 

The standing committee of the Political Bureau of the CPC Central Committee made many important arrangements for the prevention and control of the epidemic yesterday. What specific measures would be taken to implement the arrangements? Thank you.

Ma Xiaowei:

The worth of any plan lies in its implementation. Effectively implementing all arrangements of the central government is the key to controlling the spread of the epidemic and winning the battle against it.

First, we will give full play to our institutional strengths. The CPC Central Committee has decided to set up a leading group to deal with the epidemic, which will carry out its work under the leadership of the standing committee of the Political Bureau of the CPC Central Committee. At the same time, we are sending working groups to guide areas with severe outbreaks in Hubei. We also have a joint prevention and control mechanism comprising many government departments. Such a leadership system is conducive to coordinating and mobilizing national and military resources and medical materials, and ensure the need for epidemic prevention and control through close and dedicated cooperation.

Second, we will further implement the system of territorial responsibility, and highlight those of local Party committees and governments at all levels in particular. It is not only the requirement of the central government, but also in accordance with the provision of the law on the prevention and control of infectious diseases as well as the demand of the current situation. As far as we know, many provinces have established a leadership system, with Party committee and local government leaders taking major responsibility, and a joint prevention and control mechanism involving multiple government departments.

Third, we will increase guidance in regard to local actions. The National Health Commission has conducted the first round of supervision on the prevention and control in all provinces. Relevant government departments under the joint prevention and control mechanism of the State Council will continue to conduct supervision as appropriate. At the same time, we will send out working groups to each province to guide local efforts in prevention and control. The medical staff have been working hard since the outbreak of the epidemic, and residents in Wuhan and other areas under traffic control have actively cooperated with the prevention and control measures, contributing their share to epidemic control. We believe that with the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core and the strong support of the Chinese people, we will surely win the fight against the epidemic.

Liu Xiaoming:

I will supplement this question. Since the convening of the meeting of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee， the Ministry of Transport has paid great attention to the prevention and control of the new coronavirus-related pneumonia. The important instructions given by General Secretary Xi Jinping and Premier Li Keqiang have been conscientiously studied on the same night and their implementation and deployment made in a timely way. Resolving the epidemic currently is in itself the most important order and the prevention and control work the greatest responsibility. From January 22 to 25, Party secretary Yang Chuantang and Minister Li Xiaopeng of the Ministry of Transport have convened six consecutive working meetings concerning the prevention and control mechanism, and strengthened dispatch with local transport departments through video, in particular with the transport department of Wuhan, Hubei province. Our work priorities are in the following areas:

We have carried out the timely deployment of prevention and control work. On January 21, the Ministry of Transport activated a level II emergency response to prevent and control the pneumonia outbreak caused by the new coronavirus, established the joint prevention and control mechanism for the ministry, and made work deployments overnight. We have carried out ventilation, sterilization and temperature-taking measures in vehicles including buses and ships and in transport hubs such as stations, ports and highway service areas. At present, we are in a critical period where we need to prevent and control the epidemic and also ensure smooth transportation during the Spring Festival travel rush. We hope that the vast numbers of travelers can improve the ways they protect themselves, be cognizant when planning their trips and voluntarily cooperate with inspection and isolation work. I have confidence that with the concerted efforts of all we will certainly win this tough battle. 

Wang Jiangping:

Since the outbreak of the epidemic, the Party Leadership Group of the Ministry of Industry and Information Technology has placed great importance on prevention and control work. Our task is to take the lead in guaranteeing the supply of goods and materials needed for the emergency response. Against an obvious imbalance between the supply and demand of prevention and control goods and materials due to the Spring Festival period, we have taken the following measures to strengthen our security work.

First, the national industry and information technology system has taken the lead and various organizations and manufacturing enterprises have overcome all kinds of difficulties to resume work and production.

Second, the system of deploying key prevention and control goods and materials among manufacturing enterprises has been established.  

Third, efforts have been made to promote the establishment at the national level of a temporary reserve system of prevention and control goods and materials to guarantee the purchase and reserve of such goods and materials. 

Fourth, efforts have been made to provide guidance to e-commerce platforms to control the price and flow and to ensure the reasonable delivery of prevention and control goods and materials, as well as to establish an e-commerce supply and demand mechanism. 

Fifth, we have made every effort to meet the need for prevention and control goods and materials in Wuhan. Since January 23, we have received the list of demands for four batches of goods and materials. In general, the list contains four categories of goods and materials in more than twenty varieties. While the supply of the majority of goods and materials can be fulfilled, goods such as protection suits and masks are still in high demand. As is known to all, China is a huge producer. But as we are now experiencing the Spring Festival holidays, our productivity isn't at its optimum level. We have made efforts in these days to bring about the resumption of work and production of 40% of our total production capacity. However, such capacity is still not able to meet the demand for products such as protection suits. According to Hubei province's list of demands, 100 thousand medical protection suits are needed every day, this works out to be three million a month. However, there are only forty enterprises whose production capacity permits meet Chinese standards. They are currently distributed in fourteen provinces across the country and can produce a total of 30 thousand protection suits every day. As such, there is clearly a large imbalance between supply and demand. 

In addition, a part of what we produce is for export, which comes up to about fifty thousand protection suits every day. However, without the permit that meets Chinese standards, it would take some time to convert and allow them to be sold in the domestic market. 

As for our next step, we will do everything possible to ensure that we meet the needs of the places facing the epidemic. Upon learning what hospitals in Wuhan lack in goods and materials, our colleagues in our material security group have been having sleepless nights. So as a next step, we will take more measures to ensure that Wuhan's needs are always satisfied. First, we will draw on the central reserve to ensure the needs of the areas facing the epidemic are met. Second, we will do everything possible to resume work and production and rapidly improve our production capacity from the current 40%. Third, we will promote the connection between export standards and Chinese standards so that exports that are up to the EU standard or U.S. standard can be used in some areas in China. In the end, we will strengthen international cooperation. In fact, we have strengthened international procurement to make up for our present domestic deficiency. That's all I wanted to add. 

Xi Yanchun:

Are there questions from the foreign media?

AFP:

Thank you. Two questions from AFP. The first is about transport restrictions. Currently a number of cities have announced a variety of restrictions on inter-provincial buses and public transport. And of course, Wuhan now is under effective quarantine. So, the question is, will these restrictions expand to the whole country? The second question is about the severity of the new coronavirus epidemic. Will the novel coronavirus epidemic be more severe than SARS in terms of its death toll and the number people affected? Thank you very much.

Ma Xiaowei:

Thank you for your two questions. Let's give the floor to Mr. Li Bin.

Li Bin:

Thank you. Your concerns in fact relate to the measures taken currently, of which transportation-related management is one aspect. All the measures taken are constantly adjusted based on the epidemic situation, and these adjustments are made in accordance with our laws and regulations. The measures taken are by far the strictest, and are based on the actual past experience both internationally and domestically in fighting epidemics. It is estimated by experts that, if fully implemented, these measures will be able to curb the spread of the novel coronavirus, weaken the intensity of its spread, and delay the arrival of the epidemic peak, so as to give us more time for more effective prevention and control during the next stage.

In addition, your second question regarding the virus also relates to the further development of this epidemic, and we place great importance on it. As we have very limited knowledge of this new epidemic, it is not yet clear how it will evolve and the development of the epidemic is not under our control. Nevertheless, we will continue to adjust our policies and improve the measures in accordance with the ongoing epidemic situation, implementing every requirement to prevent and control this new virus. In this way, we will be fully prepared and will build our capacity to deal with the changing epidemic situation, thereby effectively preventing and controlling it.

Liu Xiaoming:

I would like to add a few words to your question. As transportation is a potential way of spreading the virus, it is therefore necessary to put transport restrictions in some regions and cities in order to effectively cut off the transmission of the virus.

As you have noticed, Beijing suspended the operation of long-distance buses yesterday. In the past, long-distance buses departing from or arriving at Beijing were only suspended from the first to the fourth day of the first lunar month, and would start operations on the fifth day. But this year the starting date of operation is yet to be determined. Also, the metro line from Shanghai to Suzhou was suspended from 1 p.m. this afternoon. All these measures aim to cut off the transmission of the virus. We believe that these measures are effective. Various measures will be adapted by the local governments and party committees in accordance to the local conditions. 

Apart from what has been mentioned, China's transport departments have implemented ventilation and sterilization measures on long-distance passenger buses, passenger aircraft and railway trains. We have also established observation stations at bus and railway stations as well as flight terminals. Those with abnormal body temperatures will be kept in observation room for further monitoring, and if necessary, could be referred to health departments, which will take further appropriate action.

I want to point out that although some cities have implemented control measures, the general day-to-day operation in cities is still guaranteed. This includes, within reason, residents' travel as well as the transportation of important goods. The transportation of people's daily supplies will also be prioritized. 

To reduce passenger flows, it's known that railway, civil aviation and road traffic departments have refunded the fares for cancelled tickets. Originally this was just for trips to and from Wuhan, but has now expanded to the whole country. This shows the government's deep concern for the people's travel, health and safety. Thank you.

Ma Xiaowei:

Since the epidemic broke out, scientists, especially virologists in China have worked hard to learn more about the virus. They successfully extracted the novel coronavirus from a sample given by the patient and discovered the pathogen one week after the outbreak. Using gene sequencing, the novel coronavirus, a new member of the coronavirus group, is a different strain compared with SARS and MERS. By consulting clinical epidemiology materials, it is inferred that the virus was probably transmitted from wild animals to people in its initial phase, but has since adapted to the human body and now entered into the phase of people-to-people transmission. Looking at the clinical cases, we can see that some are severe and some are mild, and the virus can now spread among people. According to recent clinical data, the transmission capacity of the virus has increased and its toxicity and virulence need to be further analyzed based on more clinical data.

Currently, the transmission speed of the epidemic is fast, which poses challenges and puts pressure on prevention and control work. Experts predict that the epidemic has entered a complex and severe phase and the preventive measures implemented in Wuhan play an important role in controlling the epidemic. Looking at it on a national scale, the epidemic is still in the early stage. Now stricter measures have been implemented across China which should be able to control the epidemic at a lower cost and faster speed to achieve the final victory of containing the virus.  

CRNTT:

Would you please tell us why Wuhan started to implement lockdown procedures when the number of confirmed cases of the pneumonia caused by the novel coronavirus had barely passed 300? Did the authority conceal the true figures regarding both confirmed and suspected cases? What is the exact number of people in Wuhan infected by the virus? Thank you.

Li Bin:

The exact number of people in Wuhan who have been infected by the disease can be found on the official website of the National Health Commission. Nevertheless, I would like to share the data again with you. As of 24:00 on Jan. 25, based on the report from the Hubei Health Commission to us, the confirmed cases of pneumonia caused by the novel coronavirus in Wuhan, capital of Hubei province, had increased to 618, with 40 being discharged from hospitals, 533 remaining in hospitals and 45 dead. For those in hospitals, 140 of them are in a critical condition. Meanwhile, 112 people in the city are suspected of being infected.

The city's headquarters for the control and treatment of the pneumonia caused by the novel coronavirus announced on Jan. 23 that the city temporarily stop the operations of buses, subways, ferries and long-distance coaches. Since then, local people have not been allowed to leave the city unless they can offer a quite important reason. Meanwhile, flights and trains for outgoing passengers have been suspended, and many expressway entrances have been closed. Those measures are necessary to prevent and control the virus from spreading further, and will play a part in constraining the rampant outbreak of the epidemic both in Wuhan and the rest parts of the country. Thank you.

TASS:

How long will it take to deal with the epidemic? Any comments on this? Thank you.

Ma Xiaowei:

The epidemic situation is severe and complex, and is in a critical stage of prevention and control. With regard to its spread and scope, there have been local outbreaks in Wuhan and sporadic outbreaks nationwide. Both confirmed and suspected cases have been reported in 30 provincial regions, with the exception of Tibet autonomous region. Cases have also been found in Hong Kong and Macao special administrative regions and Taiwan province, as well as in some neighboring countries. As for its transmission characteristics, some patients in the early stages of the infection have low-grade fever or normal body temperatures, and there are also many mild cases as well as recessive infections. Currently, the infectivity of the virus is on a rise and the "walking sources of infection" have greatly increased the difficulty of preventing and controlling the epidemic. The disease is mainly transmitted through the respiratory tract, but our knowledge of the new coronavirus is still very limited. The source of infection has not yet found, and its pathogenic mechanism and how the virus mutates are still not clear. As a new infectious disease, we cannot rule out the possibility of the virus changing over a period of time. There may be some new developments and the extent to which the virus affects people of different ages also varies. We have experience in fighting SARS, which took three to four months from discovery to outbreak. As for the pneumonia caused by the new coronavirus, there are patients who have milder infections but observations show that the virus is also infectious during its incubation period. This period lasts roughly 10 days, with the shortest being one day and the longest, 14 days. This is quite different from the SARS virus. At present, the rate of the epidemic is accelerating and will probably continue for some time. There may be an increase in new cases.

With the adoption of personnel control measures in Wuhan and the first-level public health emergency response widely activated in most provincial regions, corresponding measures have been taken and our prevention and control efforts will be further strengthened. It is expected that the preventive control measures will take effect one after another over a period of time.

Xinhua:

We have been paying close attention to the prevention and control situation in rural areas. There is a concern being raised by news media that, among the vast number of migrant workers who returned from cities to rural areas before the Spring Festival, some may have contracted the coronavirus. It is very common for people in rural areas to pay visits to friends and relatives during the Spring Festival. What is worse, there is a lack of experience in fighting the virus, people's awareness of fending off the coronavirus is very low, and medical conditions are not satisfactory, which means rural areas may become the vulnerable front in this battle. All these things will affect the prevention and control work. What do you make of that? How should we cope with that? Thanks.

Li Bin:

Let me answer your question. Prevention of coronavirus in rural areas is one of our key tasks. Public health in rural areas is of paramount importance in China's public health campaign, which has always given priority to the rural areas. In public health, especially in the prevention and control of infectious diseases, we should increase our efforts. At present, we have planned in an integrated way the prevention and control measures in both rural areas and urban communities. Mr. Ma stressed this point just now. To do this, we will step up efforts in the following three aspects.

First, we will raise farmers' awareness of health, especially their awareness and capabilities in regard to disease prevention. We are launching a publicity campaign to popularize the knowledge of disease prevention and control and are compiling various publicity materials for the new coronavirus-related pneumonia. Through multiple means such as "A Letter to Rural Areas", we will enhance health publicity and education, reduce large-scale gatherings and encourage people to go to the hospital immediately they experience symptoms that appear related to the disease. As to the vast number of migrant workers who have returned home from cities, we, together with the media, call on them to raise their personal awareness, voluntarily put themselves under medical observation after returning home, seek timely medical help, and support the preventative measures adopted by local governments.

Second, we will trace the migrant floating population, especially those returning home from Wuhan, and put them under medical observance. For those coming back from Wuhan, local governments will see to it that health alerts are issued and medical screenings are performed to check if they have symptoms of fever, coughing and breathing difficulties. We will keep health records via health cards which will be managed by local township hospitals and village doctors. A system of daily screening and reporting will be put in place to improve health management.

Third, we will improve diagnosis, treatment, tracing and screening of patients, confirmed or suspected. Medical institutions above county level should strengthen pre-examination triage and establish fever clinics to provide convenience as well as protective equipment for patients. Those who suffer respiratory symptoms but no fever should go to the township hospitals for treatment, and those who have fever should go to the fever clinics. Any infected person must be sent to the designated hospital and close contacts must be effectively quarantined. Meanwhile, we will strengthen infection control within medical institutions of various levels, and launch training programs for medical workers. We have recently increased efforts to train rural medical workers. Two rounds of prevention and control training programs have been completed nationwide. We have used videos for technical guidance training as well as clinical prevention and control training. The video training programs have already been launched in county and district level hospitals. As a result, the service capabilities of medical workers at grass-roots level have been remarkably enhanced. Meanwhile, we will put in place a close-knit network by implementing training programs at the township and village levels. Health authorities at county levels should provide guidance for medical workers in township hospitals and village clinics to perform medical screening and tracing. In particular, they will see to the health management of migrant workers returning home and make sure all the prevention and control measures are implemented meticulously. Thank you.

People's Daily:

During the Spring Festival travel rush, what measures have been taken by the transportation departments to avoid the spread of the virus? The traffic is expected to peak when the festival holiday ends and people return to workplace. What measures will be taken to deal with the situation? Thank you.

Liu Xiaoming:

At present, dealing with the high traffic load during the Spring Festival travel season and curbing the spread of the virus are two important tasks facing the transportation departments. I have briefed on some of the work we've done so far, and now I will provide more information. Currently, 30 out of 31 provincial regions have launched a first-level emergency response – the highest level for a public health emergency. The only one which activated a level II public health emergency response is Tibet autonomous region where there are no cases so far. In response to the problem reported in the early stage that some of Wuhan's medical people and patients could not be guaranteed efficient transportation, we communicated with Wuhan Transportation Department and instructed them to establish an emergency taxi fleet. A total of 310 buses and 4,700 taxis have been requisitioned to meet travel needs. According to the latest statistics by 7 a.m. this morning, the national transportation system has assigned 263,500 people in prevention and control work, and established 6,672 quarantine stations in expressway rest areas and waterways and highway stations. In order to ensure the transportation of goods, 4,196 non-obstructive passages were set up along the expressways. A total of 54,700 vehicles for emergency transportation are on hand, including refrigerated trucks and freight transport vehicles, to ensure the emergency transportation.

Your question shows the media's concern about the prevention of virus amid Spring Festival travel. Because public transport may play a role in the spread of coronavirus, we have taken some emergency measures, and now we see that the passenger volume of this year has decreased. According to our statistics, the total volume dropped by 28.8% on the first day of the Lunar New Year compared with the same period last year. Normally speaking, compared with last year's first day figure, this year's should have been slightly larger, but this is not the case: this year, passenger volume of railways have decreased by 41.5%, road transport 25%, and civil aviation 41.6%. Even though the number of people on the move is reduced, as Mr. Ma has just mentioned, the virus will continue to impact on people for some time. In the next step, to ensure the entire economic and social development, people must continue to work. Rural migrant workers will go in the cities, employees will return to the workplace, and those who visited families in their hometowns will return as well. In this process, the transportation departments must do well in both ensuring transportation and curbing the spread of the virus.

Firstly, we will further strengthen ventilation and disinfection of vehicles, and make sure the observing rooms are well used and the work of monitoring passengers' body temperature is efficiently carried out.

Secondly, we will work even harder to help curb the spread of virus. For example, as I said, the resumption of long-distance coaches of Beijing is delayed. Because the space on coach is small, so we decided to put off the resumption of services. For those vehicles which have larger space, we will increase the transport capacity. According to the current situation, the passenger volume is on the decrease, so the space between people will be even wider.

Thirdly, we hope that passengers can raise consciousness of self-protection and cooperate with the transportation departments, such as having their temperature taken. Together with the National Health Commission and relevant local departments, we have established a system of information registration of the passengers. All passengers who take the plane, train, or long-distance coach must register their information on the card to protect themselves and others.

Fourthly, we will further strengthen protection of drivers, attendants and conductors. For one thing, they can help ensure the efficient transportation, for another, the passengers will be protected as well. What's more, I would like comment on another measure. In some places, in order to protect certain communities or areas, some isolation facilities have been set up. We understand this. Mr. Li Bin also said that it is very important for the communities, especially in rural areas, to strengthen their own protection. It is a responsibility of everyone to ensure the safety of the community. I think this is a good measure. However, from the perspective of transportation, I think we should work in accordance with the principle of "one block and three continuations": "one block" is to firmly block the channel of virus transmission; "three continuations" refers to that the road transportation should continue to operate to ensure that society can function normally; the non-obstructive transport passages for emergency goods should continue to operate; the channels for transporting necessities of production and living should continue to remain open. Mr. Jiang said that we must resume production, so the raw materials must be available and the products must be delivered as soon as possible. In this regard, I think that we need to stick to the above-mentioned principle. Thank you.

The Dong-A Ilbo:

As far as I know, the situation of clustered outbreaks has already appeared. Based on this, is it possible that the epidemic situation has entered the next stage? How do you determine the current transmission ability of the virus? Is there also any mutation of the virus? Please give us more specific information. Finally, what prevention and control measures will Beijing take in the next stage? Thank you.

Ma Xiaowei:

These questions can be answered separately. Mr. Liu Xiaoming will answer questions about transportation, and Mr. Li Bin will answer questions about the virus.

Liu Xiaoming:

I have spoken about the transportation issue earlier. There were related reports last night and this morning because of the temporary suspension of Beijing's inter-provincial highway passenger bus services. As you know, Beijing is the most developed city in China in terms of transportation, for example, its roads, railways and civil aviation are very well developed. Every day, with the exception of small passenger vehicles, the number of trips by road transport is about 30,000 - 50,000, and during the peak period, this number hits 70,000 to 90,000. The number of trips by civilian aircraft is 300,000 or more. The number of trips annually from the Beijing Capital International Airport is more than 100 million. If we include the trips made from the new Beijing Daxing International Airport, we calculate that the daily volume exceeds 300,000. In addition to this, the number of trips by train is 500,000 - 600,000. In order to do a better job in prevention and control, the Beijing Municipal Committee of the Communist Party of China (CPC) and the Beijing Municipal People's Government have placed great importance on this and adopted a series of measures. You may have noticed that Beijing has issued corresponding public notices and releases. Judging from the measures taken, the demands for passenger traffic have decreased, and the temporary suspension of trips by road will not have much influence on Beijing. The Beijing transport system has been able to continue providing good and smooth services, and everyone can still buy their travel tickets. This is the overall transportation situation.

Li Bin:

After the outbreak of the virus in Beijing, the CPC Beijing Municipal Committee and the Beijing Municipal People's Government placed great importance on the disease, established a leading group led by the secretary of the CPC Beijing Municipal Committee, and also took effective prevention and control measures. Beijing's measures serve as a good guide and important reference for other cities across the country. The ten major prevention and control measures taken by Beijing have been forwarded to other local governments via the State Council's joint prevention and control work mechanism. Just now, Mr. Ma introduced the prevention and control measures across the country. It can be seen that many regions have learned from Beijing's practices. You can go to the relevant websites of Beijing for more information.

At the last press conference, our media friends were very concerned about a mutation of the virus and we communicated the situation to them. At present, we have been closely monitoring the mutation of the virus, because this issue is extremely critical. Now our information is consistent with the information given to our media friends last time -- no evidence of virus mutation has been found yet. Thank you.

Ma Xiaowei:

A mutation of the virus is a matter of great concern to all of us. Mr. Gao Fu, an academician at the Chinese Academy of Sciences and director of the Chinese Center for Disease Control and Prevention, has led the successful isolation of the novel coronavirus strain. Let's invite him to brief us on the mutation of the virus.

Gao Fu:

Thank you for your question. We are all keeping a close eye on this issue. Just now, Mr. Ma spoke about the process of the discovery of the virus. I am a virus researcher. Every virus has its own characteristics, and from what we know about coronaviruses, they mutate as they spread in humans. That is what we have previously known about other coronaviruses, and we are watching very closely to see whether this novel coronavirus mutates or not. We can see all its changes very quickly thanks to third-generation sequencing technology; however, this coronavirus is different from other viruses, such as the avian influenza virus. In the latter, we can observe whether it has changed and in what ways. For the novel coronavirus, we have seen no obvious changes since its discovery, regardless of whether it is isolated from the environment or the human body. That is our current understanding of the novel coronavirus. Based on our previous knowledge on coronaviruses or virology, we have not found any mutation so far, because the differences between the viruses are very small and less than 1%. We are still screening the differences, and will continue monitoring any changes. Thank you.

CNBC:

How can we address the lack of medical supplies in hospitals, especially when there is an increasing number of infected patients? Thank you.

Ma Xiaowei:

To cope with the new coronavirus-related pneumonia, large numbers of medical staff are fighting at the front line day and night and sticking to their posts. Their jobs are very stressful, they are overloaded with work, and many also face the risk of infection. We want to pay great homage to their professional spirit of health care, which is embodied by the motto, "reverence for life, save the patient, dedication to devotion, and boundless love". At the same time, we are also very anxious and worried about the lack of medical resources in Wuhan, Hubei province. The National Health Commission supports and guides local health departments to coordinate the allocation of medical beds and other medical resources. As of last night, the allocation of medical resources in Wuhan had seen a clear improvement with an addition of 2,400 new beds in hospitals. More than 2,360 medical staff have also arrived in Wuhan from the military, and other regions of China. Over the next three days, Wuhan may also be able to offer nearly 5,000 additional medical beds. The shortage of medical resources and the overcrowding in hospitals will ease.

Wang Jiangping:

As I said earlier, the most daunting challenge is the severe shortage of protective suits in Wuhan. The daily demand for these suits now stands at 100,000 but only 13,000 suits are currently being produced each day. Previously, we were able to ensure that the demand for protective suits was met by dipping into our reserves. As a next step, we will do everything we can to ensure the needs of the front line are met. The first is to send all the protective suits in the central reserve to Wuhan. Second, materials will be sent there from other provinces and regions. With the emergency starting today, more than 10,000 sets were sent to Wuhan from surrounding areas and 220,000 pieces which were purchased abroad are also on the way. Third, we will deal with the issue of exports. Some of our protective suits made for export are not in line with Chinese standards. We will solve this problem so that these protective suits can be domestically deployed in stages so as to maximize the effectiveness of limited resources. Thank you.

CGTN:

The outbreak is of international concern. I wonder how China has cooperated with the international community to respond to the novel coronavirus outbreak. Thank you. 

Ma Xiaowei:

In the wake of the outbreak, we have carried out ample communication and cooperation with the WHO and related countries, as well as China's Hong Kong, Macao and Taiwan. First, we shared the situation of the outbreak and technical information in a timely manner with the WHO. I spoke to WHO Director-General Tedros Adhanom Ghebreyesus on the phone several times. We informed the WHO of the isolation of the new coronavirus once we had completed it, and shared the whole genome sequencing of the virus with the WHO. We also made arrangements for Chinese experts to speak with WHO experts on technical issues surrounding the virus, and invited WHO experts to carry out field trips in Wuhan. This facilitated the WHO's understanding of the outbreak, and enabled us to jointly address the situation. At the invitation of the WHO, we participated in two meetings of the International Health Regulations Emergency Committee, during which we briefed the committee on the situation of the outbreak and the response measures. 

Second, we have worked on bilateral communication. We have kept close contact with health authorities in Japan, Thailand, the Republic of Korea and the United States as well as their embassies in China. We have shared information with them, verified information on suspected and confirmed cases, and gave timely responses to issues they are concerned about. Meanwhile, we have strengthened cooperation with China's Hong Kong, Macao and Taiwan. In addition to sharing information with them, we have also invited experts from these regions to take field trips in Wuhan and have in-depth exchanges with local medical workers. Also, at the request of the Hong Kong and Macao special administrative regions, we provided them with free diagnostic kits. 

In the next stage, we will continue to keep our close cooperation with the WHO and the related countries and regions, share information in a timely manner and disclose information on the prevention and control of the outbreak in an open, transparent and timely way. 

Xi Yanchun:

This will be the last question due to time constraints.

TV Tokyo:

I have a question about page No. 4 [which relates to the] strict management of Wuhan people who went outside. How does the government do this? Can you please give us more details. Thank you.

Ma Xiaowei:

I would like to invite vice minister Li Bin to answer this question.

Li Bin:

About this question, Mr. Ma has actually covered it just now. About the management over the people travelling from Wuhan, we will trace and register every one of them; place them under close observation; deal with them according to standards as well as check whether they have some abnormal medical care records. The key is to make sure that these measures can be implemented at communities in urban areas as well as in rural areas, as such areas are the first defense line, and it has been proven an effective way of managing such disease. The government has attached great importance to the management of communities, especially concerning travelers from Wuhan. We've made plans and serious measures will be taken as followed: 

First, tracing every traveler from Wuhan so as to identify the patients as soon as possible, and make early diagnosis, isolation and treatment. The government requires county-level medical institutions to strengthen pre-examination and triage, and set up fever and respiratory diseases departments so as to make it easier for potential patients to receive treatment.

Second, we have to ensure the effectiveness of the management of close contacts. After a case is confirmed, the most effective way of containing the spread of infections to effectively manage the close contacts. We need to let local officials and the health workers at both town and village-level communities to play their role so that they can work as a team to effectively handle those confirmed and suspected cases as well as the close contacts.

Third, we will strengthen management of travelers from outside the community. We will enhance health monitoring in communities, tracking residents' travel history, and take targeted measures to prevent and control infections. That is to say, we will stay ahead of the situation, mainly focusing on those travelling from Wuhan and ask them to stay at home for a 14-day medical observation. During this period, the health workers at the community-level will monitor these people's situation every day and take relevant measures as required.  

Fourth, we will launch health awareness campaigns. We will provide alerts for those travelers from Wuhan, asking them to take necessary measures by themselves, including medical observation at home, contacting community-level medical and health institutions in urban areas or town and village-level medical organizations so as to help implement these prevention and control measures. We will release health notices and medical guides through various channels to raise public health awareness, assisting people to do more to protect themselves so that they can work together with the government to implement the prevention and control measures and manage the situation effectively. 

Through these measures, we will fully mobilize the community-level authorities and health workers, carry out grid-based model management, exercise blanket tracking so that each household and individual can be monitored. Communities, sub-districts, households and individuals will work together to create synergies, and all the officials and health workers will fulfill their responsibilities so as to ensure that the prevention and control measures can be implemented sufficiently and contain the spread of the infections. Thank you. 

Xi Yanchun:

I know that friends from the media have a lot of concerns, many of which may require our response through concrete actions and specific measures. We will go all out to live up to the expectations of our people and in releasing more information. Starting tomorrow, the National Health Commission will hold a press conference every morning, as will Hubei province and some places with more severe epidemic situation.

Today, we also invite Mr. Gao Fu, director-general of Chinese Center for Disease Control and Prevention and an academician of Chinese Academy of Sciences, to take your questions afterwards. I'd like to take the opportunity to express my thanks to the Chinese and foreign media for their hard work in reporting the epidemic situation. Thanks again to our speakers. Thank you for your attendance today. The press conference is hereby concluded.

Translated and edited by Zhang Liying, Zhang Lulu, Zhang Jiaqi, Chen Yinjun, Zhu Bochen, Mi Xingang, Wu Jin, Duan Yaying, Liu Qiang, Wang Yiming, Zhang Rui, Gao Zhan, Gong Yingchun, Guo Xiaohong, Wang Qian, Li Huiru, He Shan, Wang Yanfang, Zhang Junmian, Huang Shan, Kenneth Teh Chiu Soong, 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:

Ning Jizhe, head of the National Bureau of Statistics

Chairperson:

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

Date: 

Jan. 17, 2020

   

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference. Today, we are delighted to invite Mr. Ning Jizhe, head of the National Bureau of Statistics (NBS), to introduce China's economic performance in 2019, and answer your questions. Now, I'll give the floor to Mr. Ning.

Ning Jizhe:

In 2019, China achieved overall economic stability and reached its main expected targets for economic development. Amid mounting risks and challenges both at home and abroad, different regions and government departments , under the leadership of the CPC Central Committee with Comrade Xi Jinping at its core, fully implemented the decisions and plans made by the CPC Central Committee and the State Council. They stuck to the general working guideline of making progress while maintaining stability, followed the new development philosophy, focused on supply-side structural reform, promoted high-quality development and strengthened efforts to maintain stability in employment, the financial sector, foreign trade, foreign and domestic investments, and expectations. Significant breakthroughs have been achieved in three tough battles. The national economy was generally stable, the quality of development has improved and the main expected targets have been achieved, thus laying a solid foundation for building a moderately prosperous society in all respects.

According to preliminary calculations, China's gross domestic product (GDP) was 99.09 trillion yuan in 2019, an increase of 6.1% over the previous year at comparable prices, and meeting our expected targets of 6% to 6.5%. The four quarters saw growth rates of 6.4%, 6.2%, 6.0%, and 6.0% respectively. The added value of industries were 7.05 trillion yuan, 38.62 trillion yuan, and 53.42 trillion yuan for the primary, secondary and tertiary industries, respectively, with growth rates of 3.1%, 5.7%, and 6.9%.

First, grain output reached a new record and the production of beef, mutton, poultry, eggs and milk increased.

Last year's total grain output was 663.84 million tons, up by 0.9% over that of the previous year and an increase of 5.94 million tons. This ensured that output levels were maintained above 650 million tons for five consecutive years. Summer grain output was 141.6 million tons, an increase of 2.0%; early season rice 26.27 million tons, down by 8.1%; and autumn grain output 495.97 million tons, up by 1.1%. The output of wheat was 133.59 million tons, up by 1.6%; corn 260.77 million tons, up by 1.4%; soybean 18.10 million tons, up by 13.3%.

The total output of pork, beef, mutton and poultry was 76.49 million tons, down by 10.2% over last year. In particular, the output of beef was 6.67 million tons, up by 3.6%; mutton, 4.88 million tons, up by 2.6%; poultry, 22.39 million tons, up by 12.3%; eggs, 33.09 million tons, up by 5.8%; milk, 32.01 million tons, up by 4.1%; and pork, 42.55 million tons, down by 21.3%.

Second, industrial production continued to increase, and high-tech manufacturing and strategic emerging industries grew rapidly.

In 2019, the industrial output increased by 5.7% over the previous year. The value-added of the state-holding enterprises went up by 4.8%, that of share-holding enterprises by 6.8%; enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan up by 2.0%; private enterprises by 7.7%. In terms of sectors, the value-added of the mining sector increased 5.0%, that of manufacturing sector was up 6.0%, and that of producing and supplying electricity, heat, gas and water grew by 7.0%. The value-added of high-tech manufacturing sector rose by 8.8%, strategic emerging industries by 8.4% over the previous year, or 3.1 and 2.7 percentage points faster, respectively, than that of large industrial companies. In December, the industrial output grew by 6.9% year on year, or 0.7 percentage points faster than the previous month, marking an increase of 0.58% month on month. In December, the sub-indexes of the Purchasing Managers' Index (PMI), the Production Index, the New Orders Index and the Supplier Delivery Time Index reached 53.2%, 51.2% and 51.1% respectively, all staying above the threshold. The Business Activity Expectation Index for Manufacturing was 54.4%, staying within the expansion range.

In the first 11 months of 2019, the total profits of large industrial enterprises reached 5.61 trillion yuan, down by 2.1% year on year, but the decline was 0.8 percentage points lower than that of the first ten months. The profits of large industrial companies grew by 5.4% in November year on year, while that of October was down by 9.9%.

Third, the service sector grew fast with modern services sector gaining momentum.

In 2019, the Index of Service Production increased by 6.9% over that of the previous year. The value-added of information transmission, software and information technology services, leasing and business services, financial services, transportation, storage and post services grew by 18.7%, 8.7%, 7.2% and 7.1% respectively, or 11.8, 1.8, 0.3 and 0.2 percentage points faster than that of the tertiary industry. From January to November, the revenue of large service enterprises increased by 9.4% year on year. In particular, revenues of enterprises engaged in strategic emerging services, science and technology services and high-tech services increased by 12.4%, 12.0% and 12.0% respectively. Their growth rate was respectively 3.0, 2.6 and 2.6 percentage points faster than that of all large service companies. Profits of large service companies increased by 3.5%.

In December, the business activity index for services was 53.0%, continuing to stay above the threshold that separates growth from contraction. Specifically, the business activity indexes for sectors like railway transportation, lodging, telecommunication, broadcast, television and satellite transmission services, internet software and information technology services, financial services and leasing and business services all stayed within the high expansion range of 55.0% and above. From the perspective of market expectations, the business activities expectation index for services was 59.1%, maintaining a sound growth momentum.

Ning Jizhe:

Fourth, market sales demonstrated stable growth with online retail sales taking up a notably bigger share of the overall sales.

In 2019, the total retail sales of consumer goods reached 41.16 trillion yuan, up by 8.0% over the previous year. The retail sales of consumer goods by enterprises above the designated size was 14.80 trillion yuan, an increase of 3.9%. Analyzed by different areas, retail sales in urban areas reached 35.13 billion yuan, up by 7.9%, and retail sales in rural areas stood at 6.03 billion yuan, up by 9.0%. Grouped by consumption patterns, catering revenue was 4.67 trillion yuan, up by 9.4%; and the retail sales of goods was 36.49 trillion yuan, up by 7.9%. Upgraded consumer goods grew fast. The growth of retail sales of cosmetics, communication appliances, sports and recreational items, as well as household appliances and audio-video equipment by enterprises above the designated size rose by 8.7, 4.6, 4.1 and 1.7 percentage points respectively. In December, the total retail sales of consumer goods increased by 8.0% year-on-year and 0.53% month-on-month.

In 2019, online retail sales reached 10.63 trillion yuan, a year-on-year growth of 16.5%. In particular, the online retail sales of physical goods was 8.52 trillion yuan, up by 19.5%, accounting for 20.7% of the total retail sales of consumer goods, and was 2.3 percentage points higher than that of the previous year.

Fifth, investment in fixed assets witnessed steady growth and investment in high-tech industries grew fast.

In 2019, the investment in fixed assets (excluding rural households) reached 55.15 trillion yuan, up by 5.4% over the previous year. In particular, the investment in infrastructure was up by 3.8%, manufacturing up by 3.1% and real estate development up by 9.9%. The floor space of commercial buildings sold reached 1.72 billion square meters, down by 0.1%. The total sales of commercial buildings was 15.97 trillion yuan, up by 6.5%. The investment in the primary industry went up by 0.6%; the secondary industry up by 3.2%; and the tertiary industry up by 6.5%. Private investment was 31.12 trillion yuan, up by 4.7%. The investment in high-tech industries grew by 17.3%, or 11.9 percentage points faster than total investment, of which the investment in high-tech manufacturing and services increased by 17.7% and 16.5% respectively. The investment in social sectors went up by 13.2%, or 7.8 percentage points faster than the total investment, among which the investment in education and in culture, sports and entertainment went up by 17.7% and 13.9% respectively. In December, the investment in fixed assets grew by 0.44% month-on-month.

Sixth, foreign trade witnessed growth despite downward pressure and the proportion of general trade has continued to grow.

In 2019, the total value of imports and exports was 31.54 trillion yuan, an increase of 3.4% over the previous year. The total value of exports was 17.23 trillion yuan, up by 5.0%; and the total value of imports was 14.32 trillion yuan, up by 1.6%. The trade balance was in surplus of 2.92 trillion yuan. The imports and exports of general trade accounted for 59.0% of the total value of imports and exports, an increase of 1.2 percentage points compared with the previous year. The exports of mechanical and electrical products increased by 4.4%, accounting for 58.4% of the total value of exports. In particular, imports and exports with the European Union and ASEAN went up by 8.0% and 14.1% respectively. Imports and exports with countries along the Belt and Road has maintained a sound momentum, increasing by 10.8%, or 7.4 percentage points faster than the growth of the total imports and exports of goods. The export delivery value of industrial enterprises above the designated size reached 12.42 trillion yuan, up by 1.3% over that of the previous year.

Seventh, the growth in consumer price has met the projected target and producer prices for industrial products declined slightly.

In 2019, consumer price went up by 2.9% over the previous year, meeting the projected target of around 3%. Specifically, consumer prices went up by 2.8% in urban areas and 3.2% in rural areas. Grouped by commodity categories, prices for food, tobacco and alcohol went up by 7.0%; clothing up by 1.6%; housing up by 1.4%; articles for daily use and services up by 0.9%, transportation and communication down by 1.7%; education, culture and recreation up by 2.2%; medical services and health care up by 2.4%; and other articles and services up by 3.4%. In terms of food, tobacco and alcohol prices, prices for grain went up by 0.5%, fresh vegetables up by 4.1% and pork up by 42.5%. Core CPI excluding the prices of food and energy went up by 1.6%, which was 0.3 percentage points lower than that of the previous year. In December, the consumer price went up by 4.5% year-on-year, and maintained the same level as November month-on-month. In 2019, producer prices for industrial products went down by 0.3% over the previous year and for December, down by 0.5% year-on-year, and maintained the same level as November month-on-month. Purchasing prices for industrial producers went down by 0.7% over the previous year, and in December, down by 1.3% year-on-year, and was at the same level as November month-on-month.

Eighth, employment was generally stable and the surveyed unemployment rate in urban areas met the projected target.

In 2019, the number of newly employed people in urban areas totaled 13.52 million, which remained above the 13-million mark for seven years in a row. This notably exceeded the projected target of 11 million and achieved 122.9% of the entire year's target. In December, the surveyed unemployment rate in urban areas was 5.2%. In 2019, the monthly surveyed unemployment rates in urban areas stayed within the range of 5.0% to 5.3%, achieving the projected target of around 5.5% and below. The surveyed unemployment rate of the main labor force aged between 25 to 59 was 4.7%. In December, the urban surveyed unemployment rate in 31 major cities was 5.2%. At the end of 2019, the registered unemployment rate in urban areas was 3.62%, or 0.18 percentage points lower than at the end of previous year, meeting the projected target of 4.5% and below. At the end of 2019, the total number of employed persons was 774.71 million and the number of urban employed persons was 442.47 million. The number of rural migrant workers reached 290.77 million, 2.41 million more and up by 0.8% compared to the previous year. Specifically, local rural workers totaled 116.52 million, up by 0.7%; migrant workers employed away from their homes totaled 174.25 million, up by 0.9%. The average monthly income of migrant workers was 3,962 yuan, up by 6.5% over the previous year. 

Ning Jizhe:

Ninth, residents' income grew at the same pace as the economy and the urban-rural income ratio continued to narrow. 

In 2019, the nationwide per capita disposable income of residents was 30,733 yuan, a nominal increase of 8.9% over the previous year. The growth rate was 0.2 percentage points higher than the previous year, and actual incomes saw a real increase of 5.8% after deducting price factors, which meant they generally grew at the same pace as the growth of the economy and per capita GDP. By permanent residence, the per capita disposable income of urban households was 42,359 yuan, marking a nominal growth of 7.9% and a real growth of 5.0% after deducting price factors. The per capita disposable income of rural households was 16,021 yuan, marking a nominal growth of 9.6% and a real growth of 6.2% after deducting price factors. The per capita disposable income of urban households was 2.64 times that of rural households, a decrease of 0.05 from the previous year. The median of the nationwide per capita disposable income was 26,523 yuan, a nominal increase of 9.0% over the previous year. Looking at the per capita disposable income of nationwide households by income quintiles, the income of the low-income group was 7,380 yuan, the lower-middle-income group 15,777 yuan, the middle-income group 25,035 yuan, the upper-middle-income group 39,230 yuan, and the high-income group 76,401 yuan.

In 2019, the nationwide per capita consumer spending was 21,559 yuan, marking a nominal increase of 8.6%. It grew 0.2 percentage points faster than that of the previous year, and had a real increase of 5.5% after deducting price factors. Specifically, the per capita consumer spending of urban residents was 28,063 yuan, which was a nominal growth of 7.5% while the per capita consumer spending of rural households was 13,328 yuan, marking a nominal growth of 9.9%.

Tenth, key reforms and crucial tasks were further advanced and the country's economic transformation and upgrading maintained its momentum.

Notable achievements were made in supply-side structural reform. In 2019, the industrial capacity utilization rate nationwide was 76.6%, 0.1 percentage points higher than the previous year. Specifically, the industrial capacity utilization rates of extraction of petroleum and natural gas and the smelting and pressing of ferrous metals were 91.2% and 80.0% respectively, or 2.9 percentage points and 2.0 percentage points higher than the previous year. The asset-liability ratio of enterprises also declined. At the end of November, the asset-liability ratio of industrial enterprises above the designated size was 56.9%, or 0.3 percentage points lower year-on-year. At the end of 2019, the floor space of commercial buildings for sale reached 498.21 million square meters, down by 4.9% over the end of the previous year. The unit cost of enterprises also continued to decline compared with early 2019. As for strengthening certain weak areas, the investment in these areas grew fast. In 2019, the investment in ecological protection and the treatment of environmental pollution as well as in environmental monitoring and treatment services increased by 37.2% and 33.4% respectively, and grew 31.8 percentage points and 28.0 percentage points faster than the overall investment. The dynamism of microeconomic entities was also strengthened. In 2019, there was a total of 23.77 million newly registered market entities and an average of 20,000 newly registered enterprises per day. The level of activity reached about 70%. By the end of the year, the number of market entities totaled 120 million. Major breakthroughs were also made in the three critical battles against potential risk, poverty, and pollution. In 2019, a total of 11.09 million rural poor were lifted out of poverty. According to preliminary estimates, the share of consumption of clean energy such as natural gas, hydro power, nuclear power and wind power as part of the total energy consumption was 1.0 percentage point higher compared with the previous year. The energy consumption per 10,000 yuan of GDP continued to decrease compared with the previous year by as much as 2.6%. By the end of November, the outstanding local government debt nationwide was 21.33 trillion yuan, within the limit approved by the National People's Congress.

The economic structure has continued to be optimized. In 2019, the value-added of the tertiary industry accounted for 53.9% of the total GDP. This was 0.6 percentage points higher than the previous year, 14.9 percentage points higher than in the secondary industry and contributed to 59.4% of GDP growth. The role of consumption as the major impetus for economic growth was further consolidated. The final consumption expenditure contributed to 57.8% of GDP growth, 26.6 percentage points higher than the gross capital formation. Household consumption was also upgraded and had improved in quality. In 2019, the national Engel coefficient was 28.2%, 0.2 percentage points lower than in 2018. Service consumption expenditure accounted for 45.9% of per capita household consumption expenditure, 1.7 percentage points higher than that of 2018.

Eleventh, China's population grew steadily, and the urbanization rate continued to rise. 

By the end of 2019, the mainland population (including the population in the 31 provinces, autonomous regions, municipalities directly under the central government, and PLA personnel, but excluding the population of the Hong Kong Special Administrative Region, Macao Special Administrative Region, Taiwan province and overseas Chinese) stood at 1.4 billion, an increase of 4.67 million from the year before. There were a total of 14.65 million births and 9.98 million deaths reported in 2019, and the birth and death rates reached 10.48 and 7.14 per 1,000, respectively. In terms of gender distribution, there were 715.27 million males and 684.78 million females, putting the gender ratio at 104.45. The working-age population (people aged between 16 to 59) stood at 896.4 million, representing 64% of the total population. About 253.88 million people were registered as being 60 or older, accounting for 18.1% of the population; 176.03 million were 65 or older, which made up 12.6% of the population. There were 848.43 million urban residents, a 17.06 million increase from the previous year. The rural population fell 12.39 million to a total of 551.62 million. The urbanization rate was 60.6%, 1.02 percentage points higher than the previous year. About 280 million people resided in places away from their places of residential registration for over six months, 6.13 million less than the previous year. In particular, the floating population was 236 million, 5.15 million less than in the previous year.

Generally speaking, the national economy in 2019 has sustained stable momentum by pursuing progress while ensuring stability. However, we should also be aware that global economic and trade growth is slowing down and sources of instability and points of risk are increasing. Domestically, the national economy has witnessed a combination of structural, systematic and cyclical problems and is facing mounting downward pressure. As our next stage, we will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the policy decisions and plans of the CPC Central Committee and the State Council, and remain committed to the general principle of pursuing progress while ensuring stability. We will also follow the new development approach and push forward high-quality development, continue to pursue supply-side structural reform as our main task, continue to draw strength from reform and opening up, and be committed to winning the three tough battles (preventing financial risks, reducing poverty and tackling pollution). We will also intensify efforts to maintain stability in employment, the financial sector, foreign trade, foreign and domestic investments, and market expectation. Also, we will take coordinated steps to achieve steady growth, advance reform, make structural adjustments, improve living standards, guard against risk and ensure stability. This will allow us to keep the economy performing within an appropriate range, successfully reach our goal of building a moderately prosperous society in all respects and fulfill the 13th Five-Year Plan. 

Hu Kaihong:

Thank you, Mr. Ning. Now let's move on to questions. Please identify your media organization before asking your questions.

China Central Television:

The domestic and foreign environment for China's development faced severe challenges in 2019. Mr. Ning, what do you think of China's economic performance last year and did China achieve its goals set early in 2019? Thank you. 

Ning Jizhe: 

In 2019, under the strong leadership of the Central Committee of the CPC with Comrade Xi Jinping at its core, we stayed committed to the underlying principle of pursuing progress while ensuring stability, continued to pursue supply-side structural reform as our main task, strengthened the role of macroeconomic policies in making counter-cyclic adjustments, and maintained stability in employment, the financial sector, foreign trade, foreign investment, domestic investment, and market expectations. The national economy maintained stable growth, with a steady increase in the quality of development, and all the major targets and tasks were fulfilled. The country's overall economic performance demonstrated the following six features.

First, the economy maintained medium-to-high speed growth. As I said before, the GDP in 2019 reached 99.09 trillion yuan, increasing 6.1% year on year, which was within the government's target of 6% to 6.5%. It was significantly higher than the global average, and ranked among the fastest growing among the world's major economies. China registered the fastest growth among trillion-dollar economies. You may have noticed that in 2019, the United States saw an economic growth of 2.3%, Japan and the Eurozone grew slightly more than 1%, and India a bit higher than 5%. Thus, China was still the No. 1 in terms of economic growth. Also, China's per capita GDP reached 70,892 yuan. Measured by the average annual exchange rate, that was $10,276, crossing the $10,000 mark. This is a new breakthrough. 

Second, job growth continued to expand. In 2019, the urban unemployment rate each month hovered between 5% to 5.3%, realizing our target of keeping the rate below 5.5%. In December, that number stood at 5.2%. Throughout 2019, the number of new jobs was 13.52 million, exceeding the 13 million mark for seven years in a row, and significantly higher than our target of 11 million. As I said earlier, the number of migrant workers is still growing and it reached 291 million in 2019. 

Third, prices were generally stable. The CPI expanded 2.9% in 2019, realizing our target of keeping the rate below 3%. Food prices rose by 9.2%, and non-food prices grew by 1.4%. CPI excluding food and energy rose 1.6%, lower than in 2018. 

Fourth, foreign trade and investment increased despite the overall trend of decline. In 2019, the total value of imports and exports of goods increased by 3.4% over the previous year, with exports increasing by 5% and imports increasing by 1.6% respectively, thereby achieving steady and higher-quality growth and meeting the targets set early last year. The trade surplus also increased by 25.4% over 2018. In terms of foreign investment, against the global backdrop of steep declines in cross-border investment, China's utilized foreign investment increased 6% from January to November and the total amount last year is expected to top $130 billion. By the end of 2019, foreign exchange reserves stood at 3.11 trillion yuan, an increase of $35.2 billion from the end of 2018.

Fifth, the income of Chinese residents grew at a similar pace with the national economic growth. In 2019, per capita disposable income reached 30,733 yuan, registering an inflation-adjusted growth of 5.8%. This is similar to the growth rate of GDP and on par with the growth rate of per capita GDP. As GDP rose 6.1% last year and the entire population grew by more than 0.3%, the country's per capita GDP rose 5.8% or so. This achieved our target of keeping residents' income growth on par with economic growth. An especially heartening piece of news is that the per capita disposable income of rural residents registered a real growth of 6.2%, continuing to be higher than that of urban residents. The income gap between urban and rural residents is continually narrowing.  

Sixth, our economic growth demonstrated higher quality and efficiency. With the pushing ahead of supply-side structural reforms, the gains made in the five priority tasks – cutting capacity, cutting excess urban real estate inventory, de-leveraging, cutting costs, and strengthening areas of weakness – were consolidated. As I said earlier, the rate of industrial capacity utilization reached 76.6%, higher than in 2018. Measured by the debt-to-asset ratio of industrial enterprises above the designated scale (annual revenue of 20 million yuan or more coming from their main business operations), the micro leverage ratio stood at 56.9% at the end of November, down 0.3 percentage points from the same period in 2018. The ratio between urban and rural residents' per capita disposable income was 2.64, down 0.05 from that in 2018, demonstrating a narrowing gap between urban and rural incomes. Industries, investment and other major indicators in central and western China registered faster growth than in the country's east, showing that the gap in development among different regions is narrowing. 

Noticeably, major macroeconomic indicators showed positive changes in the fourth quarter, especially in November and December. From October to December last year, GDP rose 6%, this was equal to that in the third quarter and had exceeded expectations. In the last three months last year, the value-added of industrial enterprises above the designated scale grew 6% year on year, which is a 1 percentage point higher than in the third quarter. In December particularly, the added value rose 6.9%, up 2.2 and 0.7 percentage points from that in October and November, respectively. The total annual retail sales of consumer goods in the fourth quarter grew 7.8% year on year, 0.2 percentage points higher than in the third quarter. In particular, that number in December was 8%, up 0.8 percentage points from October and equal to that in November. The total fixed-asset investment (excluding rural households) grew 5.4% last year, which was 0.2 percentage points higher than that from January to November. Foreign trade in December rose 12.7%, 10.7 percentage points higher than in November. The PMI in December was 50.2%, exceeding the 50-point mark which indicated that there was economic expansion for two months in a row. The non-manufacturing business activity index was 53.5%, continuing to be in the promising range.

Therefore, all the major macroeconomic indicators met expectations and fell within the targets set in early 2019. In particular, these indicators showed positive changes in November and December. Thank you. 

Xinhua News Agency:

As we have observed, China's per capita GDP exceeded $10,000 in 2019 and its gross domestic product was approximately 100 trillion yuan. My question is: How should we interpret these two landmark figures? In other words, do they bring about any change in China's development stage at present? Thank you. 

Ning Jizhe:

You have asked a good question. As we have all noticed, China's GDP in 2019 did reach 99.1 trillion yuan, or approximately 100 trillion yuan, which translates to $10,276 per capita based on the average exchange rate. That is to say, our per capita GDP in 2019 did exceed the $10,000 milestone. This not only signified the continuous expansion of the size of our economy, but also marked the stable improvement in the quality of our economy as well as our people's livelihood. The Chinese people's efforts in this regard have not only laid a solid foundation for China's realization of a moderately prosperous society in all respects but also contributed to the development and progress of mankind. Yes, this is of landmark significance, and we can understand it from the following four aspects: 

First, this achievement marked the enhancement of China's national strength. China's GDP totaled 99.09 trillion yuan in 2019, which was close to 100 trillion yuan. Converted at the prevailing average annual exchange rate, our GDP in 2019 reached $14.4 trillion, ranking second in the world. Based on our calculation and comparison, this figure is basically equivalent to the sum of the GDPs of Japan, Germany, the UK and France in 2018, which ranked third to sixth respectively in the world that year. China's economy is rapidly developing; it is politically stable, culturally progressive, and socially harmonious; its environment and ecology are fast improving and its national defenses are strong. China's pace of progress cannot be stopped. 

Second, this achievement marked the improvement of China's social productivity. Our agricultural foundation has been consolidated. In 2019, the total grain output was 660 million metric tons. This is the highest grain output in Chinese history and has made China the largest grain-producing country in the world. Our industrial system is also continually improving and we have all the industrial classifications in the world. Our infrastructure is more complete. By the end of 2019, the total operating mileage of China's high-speed rail reached 35,000 kilometers, accounting for more than two thirds of the world's total. The length of China's highways reached 140,000 kilometers, ranking first in the world. Our installed power capacity was close to 2 billion KW, also ranking the first in the world. With 860 million internet users, our modern information and communication system is constantly improving. 

Third, this achievement marked the improvement of Chinese people's living standards. The improvement in the quality of employment is reflected in the rise of the proportion of residents employed in cities and towns. In 2019, 440 million people were employed in urban areas, accounting for 57.1% of the total employed population, which marked a year-over-year increase of one percentage point. Residents also saw an improvement in their income level and quality. The national per capita disposable income surpassed 30,000 yuan in 2019. This year also witnessed the improvement of people's consumption quality as well as an upgrade of the consumption structure. This can be proved by two data points. The first is that the proportion of service consumption expenditure in per capita consumption expenditure reached 45.9%, marking a year-over-year increase of 1.7 percentage points. The second is that the proportion of income spent on food in total consumption expenditure, which is the Engel Coefficient, was 28.2% in 2019, a year-over-year decrease of 0.2 percentage point. The increase in the consumption of services and decrease in the consumption of food indicate that the overall consumption structure has been upgraded. People's livelihoods have also been improved. Generally speaking, residents now have houses to live in, they use private cars as a convenient means of transportation and an increasing number of people can now afford to travel within and outside China. In 2019, the per capita floor area of residents was close to 40 square meters , and the number of private cars in the country reached 200 million. 2019 also witnessed 5.8 billion Chinese traveling around China and more than 140 million Chinese traveling abroad. This shows that the size of the middle-income group is ever expanding. 

Fourth, this achievement marked China's increasing contribution to the development and progress of mankind. According to World Bank data, the combined population of countries with a per capita GDP of more than $10,000 in 2018 was nearly 1.5 billion. As China, with a total population of 1.4 billion, entering the ranks of countries with a per capita GDP of more than $10,000, the world will now have nearly 3 billion people at this income level. This marks a major progress in social and economic development over the course of human history. China, as an emerging developing economy, has made its contribution to the world. That is why we say developing China is in itself contributing to the world at large.  

In summary, China's 2019 GDP is expected to account for more than 16% of the world's overall, and the rate of China's contribution to world economic growth is expected to reach approximately 30%. China remains the most powerful engine of world economic growth. China's per capita GDP is now among the ranks of the world's middle-income countries, and its human development index status has further improved. 

At the same time, we must see that China's basic national conditions remain clearly unchanged. To be more specific, China is currently in and will remain in the primary stage of socialism for a long time, it still has a large population and under-developed productivity in general; and China still faces the prominent problem of unbalanced and inadequate development. Therefore, our status as the world's largest developing country remains unchanged. Although the gap of per capita GDP between China and higher-income countries is narrowing, we are still among the ranks of middle-income countries. Therefore, we must strive long and hard to build China into a modern socialist country and achieve the great rejuvenation of the Chinese nation. Thank you!

Bloomberg:

I have two questions. First, can you please tell us the fourth quarter's numbers for the contribution of net exports, consumption and investment? What was the nominal GDP growth, and what was the GDP deflator? My second question is that, you said the full year final consumption contribution was 57.8%, which is below 61.4% in the third quarter and way below the levels in 2018. Is that decline because real disposable income per capita is below real GDP growth? What will you do to increase real incomes in 2020 so that consumption can expand and how will it help to re-balance the economy? Thank you.

Ning Jizhe:

You are concerned with the contribution rate of consumption, investment, and import and export to economic growth in the fourth quarter as well as for the year 2019. Since these three aspects complement one another, a falling statistic will inevitably lead to a rising one. As you may notice, the final consumption expenditure in the first three quarters constituted 60.5% of economic growth, meanwhile the contribution rate of the final consumption expenditure through the year was 57.8%, lower than 60%. The total capital formation contributed to 31.2% of economic growth last year, showing a rising trend. The net exports of goods and services, that is, the exports of goods and services minus imports, was 11% in 2019. Compared with the statistics in the first three quarters, the data in the fourth quarter is different. Nevertheless, consumption is still the biggest driving force for China's economic growth, and its contribution rate stood at around 60% last year.

Regarding your second question, as I mentioned just now, the nominal growth rate of residents' disposable income per capita was relatively high. However, due to the expansion of the CPI last year, the actual growth rate was 5.8% in real terms. I mentioned earlier that the growth rate of GDP per capita also stood at 5.8%, thus these two indicators shared the same growth rate.

You are also concerned about trends in the consumer sector in 2020. Looking at the data in 2019, we found that final consumer expenditure contributed nearly 60% to overall economic growth. Consumption has played a fundamental role in China's economic development and is the primary driving force for China's economic growth. Looking forward to 2020, the steady growth of residents' income will drive the improvement of consumption capacity. With the continuous upgrade of the consumption structure of residents, consumption will continue to expand, and as reform in this area is further advanced, the consumption environment will only continue to improve. Coupled with the improvement in market expectations and the rise in consumer willingness to consume, it is foreseeable that the fundamental role of consumption in China's economic development will further grow. Thank you.

CNR:

We have noticed that 2020 is the decisive year for building a moderately prosperous society in all respects. May I ask Mr. Ning, judging from the results of 2019, could you tell what progress has been made in this regard? In 2020, what areas will we work harder on? Thank you.

Ning Jizhe:

Building a moderately prosperous society in all respects is our Party's first centenary goal. The past 2019 was a crucial year for the cause. After a year of efforts, new and significant progress has been made, especially with respect to the three major battles to overcome difficulties. Below I will specifically introduce the progress we have made in building a moderately prosperous society in all respects.

First, the expansion of the economic aggregate and the growth of residents' income go hand in hand. In 2019, China's GDP increased by 6.1%, which works out to be an increase of nearly 7.2 trillion yuan. This is more than $1 trillion at the average annual exchange rate. As I said just now, China's economy is growing the fastest among economies with a value of more than $1 trillion, and our increase is equivalent to the economic aggregate of a moderately developed country in a year. Looking at each quarter of the year, the four quarters have increased by 6.4%, 6.2%, 6.0%, and 6.0% year-on-year. Looking back at the past few years, we can see GDP growth has remained between 6-7% for 18 consecutive quarters. The resilience of China's economic development continues to shine. This not only indicates that new progress has been made in expanding the economic aggregate when building up a moderately prosperous society in all respects in 2019, but the economic development in 2019 also provides a strong guarantee for the decisive victory of our mission to build a moderately prosperous society in all respects in 2020. In terms of the people's livelihood, in 2019, the per capita disposable income of China's residents exceeded 30,000 yuan, which also laid the foundation for the eventual completion of building a moderately prosperous society in all respects in 2020.

Second, outstanding results have been achieved in the fight against poverty. In 2019, poverty alleviation efforts reached a new level. Funds, projects, and measures in the areas facing deep poverty have increased. Poverty alleviation by industries, employment, education, and health have progressed steadily, and 340 counties have been removed from the list of poverty-stricken counties across the country. The task of poverty alleviation through relocation as outlined in the 13th Five-Year Plan has been completed. I have just introduced that, according to the latest statistics, 11.09 million of the rural poor across the country have been extricated from poverty. For the seventh consecutive year, the number of people who have escaped poverty has exceeded 10 million. According to current poverty standards, the number of the rural poor has dropped to 5.51 million by the end of 2019.

Third, the ecological environment continues to improve. In 2019, new achievements have been made in ecological protection and pollution prevention. According to preliminary calculations, the proportion of clean energy consumption in the total energy consumption over the whole year was about 24%, an increase of about a 1.0 percentage point over the previous year. The average number of days with excellent air quality in 337 cities at or above the prefecture level stood at 82%. The average concentration of fine particles, which is the PM2.5 in cities at or above the prefecture level which fail to meet the PM2.5 standards, decreased by 2.4% compared with the previous year. The proportion of the water quality categories 1 - 3 increased by 3.9 percentage points compared with the previous year, and the proportion of the five inferior water categories decreased by 3.3 percentage points.

Fourth, fiscal risks are controllable. In 2019, positive results were achieved in preventing and resolving major risks. China's macro-leverage ratio is basically stable, while its micro-leverage ratio has steadily decreased. I just introduced the asset-liability ratio of industrial enterprises above the designated size. In the field of finance, banks and financial institutions have low non-performing loan ratios, high provision coverage ratios, and relatively stable asset quality. At the end of November, the nation's local government debt balance stood at 21.3 trillion yuan, which was within the limits approved by the National People's Congress. The overall financial system is healthy and risks can be prevented and controlled.

Fifth, people's lives have continued to improve. In 2019, the improvement to people's livelihood guarantees has been strengthened. While promoting large-scale tax and fee reductions, governments at all levels have ensured that the people's livelihood expenditures have increased reasonably, social construction has achieved remarkable results, and the people's sense of gain, security, and happiness continues to increase. In terms of learning and teaching, the gross enrollment rate of pre-primary education has further increased from the base of 81.7% in the previous year, and the consolidation rate of the nine-year compulsory education has increased from a base of 94.2% in the previous year. In terms of income from work, the per capita of urban residents salary income now accounts for more than 60% of per capita disposable income, and the sum of per capita wage income and operational income of rural residents accounts for more than 70% of per capita disposable income. In terms of medical treatment, the number of people covered by basic medical insurance is now about 1.35 billion. In terms of elderly care, there are now 967 million people covered by a basic endowment insurance. I also introduced relevant data about living quarters and housing. Shantytown renovation and public rental housing construction have been further promoted. The per capita housing construction area of urban residents is now about 40 square meters. In terms of helping the weak and poor, the urban and rural minimum living guarantee standards have continued to increase.

This year is the decisive year for the building of a moderately prosperous society in all respects, and also the final year for the 13th Five-Year Plan. While we have seen significant progress in building a moderately prosperous society in all respects, we also need to ensure that we must succeed this year and overcome the toughest of difficulties. It is necessary to build on the existing foundation, strengthen our determination to win, highlight the key points, make up for shortcomings, strengthen area of weakness, and ensure that the goal of building a moderately prosperous society in all respects is successfully completed. 

First, we must implement a proactive fiscal policy and a sound monetary policy, as well as strong employment, industry-related, and regional policies. We need to ensure that the economy operates within a reasonable range, and we must achieve a reasonable increase in volume and a steady improvement in quality. Second, we must continue to promote supply-side structural reforms, accelerate reforms in key areas such as state-owned enterprises, state-owned assets and finance, and continue to promote coordinated regional development. The third aspect is to resolutely fight the three major difficulties. We shall concentrate our forces to fight the battle to eradicate deep poverty, continually consolidate the results of poverty alleviation, fight the pollution control war, and focus on the battle to reclaim the blue sky, clear water, and clean land. It is also necessary to improve the risk management mechanism and do a good job of preventing and controlling the risks at the source. The fourth aspect is to unswervingly implement the new development concept. We will continue to implement the innovation-driven development strategy, continue to stimulate the endogenous power and innovation vitality of economic development, continue to promote high-quality economic development, and achieve a steady improvement in economic quality. Fifth, we must ensure that the people's livelihoods, especially the basic living needs of people in need and facing difficulties, are effectively guaranteed and improved. We will strengthen the social security guarantees of the needy, maintain employment stability, and boost efforts to make up for the shortcomings in aspects affecting people's livelihood such as in education, medical care, and housing.

Thank you.

Reuters:

According to the second paragraph on the first page of your report, during the course of last year, GDP growth in China slid from 6.4 percent to 6 percent. What is the government going to do to stop this slide? Also, what's your prediction for what GDP growth will be this year? And finally, a trade deal has just been reached between China and the U.S., however, according to reports, many of the tariffs will remain at least until after the US election which will take place towards the end of this year. How worried are you about the effect of the remaining tariffs on China's economy? Thank you.

Ning Jizhe:

Seasonal fluctuations in GDP are common. GDP data released by other countries in the world can show even more volatility. To measure GDP growth, you can use not only year-on-year and month-on-month, but also annualized rate of quarter-on-quarter change and month-on-month change. The statistics you have observed with growth dropping from 6.4 percent in the first quarter to 6.2 percent in the second and 6.0 percent in the third and fourth quarters are based on a year-on-year method. However, despite the slide, they have remained within an appropriate range, given that China's economy is still facing downward pressure. To lessen the pressure, the Chinese government has made notable progress by securing employment, defusing financial risks, ensuring the stability of foreign trade, overseas capital and investments and safeguarding confidence in its economic forecast. As a result, the 6.1-percent growth achieved last year has ranked top among the economies with a size above $1 trillion. That is amazing indeed. Meanwhile, we have transformed our economic growth from one that focuses on speed to that of quality, seeking quality growth within a reasonable range. 

The economic growth in 2020 as you mentioned will maintain sound momentum as its trajectory towards a promising future in the longer term remains unchanged. Despite the downward pressure we have faced, actions will be taken to give a boost to the economy. Complying with the principles of the Central Economic Work Conference, the governments at all levels will make sure that all the policies will be fully put into effect. As we run a market of 120 million people, we'll work concertedly to press ahead with economic growth that focuses on quality and efficiency. Therefore, we can predict that this year's economy can achieve stable growth.

The phase-one economic and trade agreement between China and the United States, as you have asked about, has been reached reciprocally after rounds of negotiations on a fair and equal basis. This did not only result in a more positive prediction of China's economy but also that of the United States and the rest of the world. Positive reactions can also be observed from global capital markets as well as in analyses and forecasts by major international economic organizations. As you know, the International Monetary Fund has forecast that China's economic growth will increase by 0.2 percentage points in 2020.

Regarding the tariffs, the two countries have adopted measures to exempt and rule out some custom duties since last October, creating ways for the economy and bilateral trade to run normally. We'll fully implement the economic and trade deal reached in the first phase, which is conducive to deepening Sino-US economic and trade cooperation, securing the economic and trade development of China and other counties and ultimately benefitting the stable growth of the global trade and economy. Thank you.

Ta Kung Pao and Wen Wei Po:

We have noted that based on the Central Economic Work Conference, China's economy, which is securing stable and sound momentum, is expecting better development in the long run. And its course has in no way been changed. However, we have noticed, at the same time, that the rate of economic growth in China has been trending down over the past few years. In addition, the internal and external environments remain complicated. Therefore, Mr. Ning, how would you respond to such a situation?

Ning Jizhe:

Thank you for your good question indeed.

As I mentioned, China's economy has a stable and sound momentum and the trend for its continued development in the long run has remained unchanged. That mirrors the actual current situation and also predicts its future course. It is supported by a solid foundation and several strong conditions. I'll explain them to you in the following aspects.

First, this is a result of the Party's strong leadership and the institutional advantage of the socialism with Chinese characteristics, whose great asset is the centralized and unified leadership of the CPC. The socialism with Chinese characteristics combines socialism with a market-oriented economy, which could increase enthusiasm on all fronts, focus on major tasks, continuously unleash productive forces, and effectively confront different kinds of external impact. Looking back, we have already successfully coped with the Asian financial crisis in 1998 and the international financial crisis in 2008. In recent years, we have faced adverse effects caused by the complex and changeable economic environment at home and abroad, maintained sound and sustained economic development, and accumulated a rich experience in macro-economic regulation. Currently, with a low fiscal deficit ratio, abundant foreign exchange reserves, rich and high-quality property holdings, a stable debt level, adequate policy means and regulation tools for macro-economic regulation, as well as the active efforts of micro-economic entities, the Chinese economy is able to maintain stable growth and move toward high-quality development.

Second, it's a result of a solid material foundation. China has the largest grain output in the world, and we increase food crop production based on farmland management and the application of technology to always have control over our own food supply. China's industrial system covering extensive fields is independent, complete, and features a strong capacity for collaboration. Its output of more than 200 kinds of industrial products is the largest in the world. China's service sector continues to grow, serving the needs of agriculture, industry, and people's livelihoods, and has contributed to nearly 60% of the overall economic growth. The infrastructure in China has been improved, water conservancy systems, transportation, communication, energy, municipal administration, and environmental protection have been strengthened, while new types of infrastructure like network platforms have grown rapidly.

Third, there is huge potential in the hyper-scale market and domestic demand. China has a population of 1.4 billion, with the largest middle-income group and market in the world. Given the fluctuations in external demand, China's domestic demand, especially consumption, has been serving as a ballast in its economy. In 2019, domestic demand contributed to 89% of China's economic growth, of which the final consumption expenditure constituted 57.8%. The six major “happiness industries”, namely tourism, culture, sport, elderly care, health and education, have maintained strong momentum with huge potential. The key role of investment has been steadily leveraged, and a large number of effective investments are still needed to shore up points of weakness, address inadequacies, and improve people's living standards.

Fourth, China boasts substantial human resources and professional talentdividend. As we have introduced earlier, the working-age population of China stood at 896 million in 2019, which makes it the world's largest potential workforce. China's population of 775 million employed workers is also the world's largest. The number of migrant workers has reached 291 million, and is still increasing. More than 170 million people are high-quality professionals who have received higher or vocational education. In recent years, more than 8 million students graduate from universities each year, and the number of secondary vocational school graduates has reached over 4 million. As these high-quality professionals enter the labor market, they will inevitably become the intellectual support and provide strong human resources needed to promote high-quality development, as well as to build a modernized economy.

Fifth, the synergy of innovation-driven development has been unleashed. In recent years, we have implemented the new development philosophy, pooling talents and strength to support business startups and innovations by the general public. In 2019, there were about 20,000 newly-registered companies every day. The number of unicorn companies, gazelle companies and the world's top 500 companies is increasing in China every year. The number of patents per 10,000 people reached 13.3. We also saw a constant stream of major scientific and technological advances throughout the year: The Chang'e-4 lunar probe successfully landed on the far side of the moon; the Xuelong 2 icebreaker set sail on its maiden voyage to the Antarctic; the country's first self-developed aircraft carrier was commissioned; and the commercial applications of 5G technology are increasing. China ranked 14th in the Global Innovation Index, up 3 places from the previous year. The new drivers of growth as well as new industries have continued to develop. The value-added of high-tech manufacturing and strategic emerging industries grew by 8.8% and 8.4%. Online retail sales grew by 19.3%, and the digital economy, network economy, platform economy, sharing economy as well as the smart economy are booming in China. As long as we leverage our strengths, consolidate and build on what we have achieved, there will always be hope when facing the complex and changing economic situation. We will certainly be able to turn risks into opportunities and continue to forge ahead. Thank you. 

Yicai TV:

According to the report presented to the 19th CPC National Congress, China's economy has been transitioning from a phase of rapid growth to a new stage of high-quality development. How much progress has been made in high-quality development? In addition, what important work are we going to do to promote high-quality development in 2020? Thank you.

Ni Jizhe:

Thank you for your question. High-quality is the current theme of China's economic development. Currently, China's economy has been transitioning from the phase of rapid growth to a new stage of high-quality development. All the achievements in 2019 as we introduced earlier can be summarized in two sentences: the national economy was generally stable and the quality of development steadily improved. It is fair to say that in 2019 all localities and departments adhered to and implemented the new development philosophy, and were engaged in building a modernized economy and promoting high-quality development. The quality and efficiency of development have been continuously improved.

First, the major economic indicators stayed within an appropriate range. All sectors remained committed to the general principle of pursuing progress while ensuring stability, stepping up efforts in stabilizing employment, finance, foreign trade, foreign investment, investment and expectations. Four major categories of macroeconomic indicators, namely those of GDP growth, job creation, consumer prices and international balance of payment, match each other. These statistics have been introduced earlier, and I'll bring them up again for your reference. China's economy grew 6.1% year on year in 2019. The surveyed urban unemployment rate nationwide stood at 5.2% in December. China's consumer price index (CPI) rose 2.9% year on year in 2019, and China saw a stable and better foreign trade structure with positive growth. Therefore, all major indicators were in line with the projected targets, and remained within an appropriate range. This shows that China's economy has been transitioning to a stage of high-quality development.

Second, the industrial structure in China has been upgraded. The service sector saw rapid growth. In 2019, the added value of the service industry, or the tertiary industry, increased by 6.9% over the previous year. This was 1.2 percentage points faster than that of the secondary industry, and accounted for 53.9% of the country's GDP. According to the economic census, the service industry accounted for 53.3% of the GDP in 2018, thus it increased by 0.6 percentage points. The service industry's contribution to economic growth is even higher, reaching 59.4%, which is 22.6 percentage points higher than that of the secondary industry. Therefore, the growth of the service industry has become an important stabilizer of economic growth. The industrial structure continues to optimize. Among the industries above the designated scale, the growth rates of the added value of equipment manufacturing and high-tech manufacturing are higher than that of industries above the designated scale as a whole. These two industries accounted for 32.5% and 14.4% of the overall industries above the designated scale, which reflected the transformation and upgrading of the industrial structure.

Third, the demand structure is being optimized. Consumption acted as a major driving force for economic development. In 2019, the final consumption expenditure contributes to 57.8% of the economic growth, 26.6 percentage points higher than the contribution rate of gross capital formation. The consumption structure has also been continuously upgraded, which is reflected in the rising levels of service consumption. Investment in high-tech industries and the social sector has also grown rapidly. In 2019, the investment of high-tech industries increased by 17.3% over the previous year, which was 11.9 percentage points faster than the total investment. The investment in the social sector increased by 13.2%, which was 7.8 percentage points faster than the total investment.

Fourth, the gap between urban and rural development is narrowing, and the level of urbanization exceeded 60%. By the end of 2019, permanent urban residents accounted for 60.6% of the total population, exceeding the 60% mark for the first time. This is also a landmark statistic demonstrating the progress of China's industrialization and urbanization. The growth of per capita disposable income in rural areas outpaced that in urban areas by 1.2 percentage points, and the central and western regions saw faster growth than the eastern region. In 2019, the added value of industrial enterprises above the designated scale in the central and western regions increased by 7.7% and 6.2%, faster than that in the eastern region by 2.9 and 1.4 percentage points respectively. Among the 11 provinces and cities along the Yangtze River Economic Belt, the added value of industrial enterprises above the designated scale in 10 provinces saw a faster growth rate than the national average level. It is fair to say that high-quality development has been achieved based on the ecological protection in the Yangtze River Economic Belt.

Fifth, the drive for innovation continues to be strengthened. Emerging industries, new commercial activities and new models have also developed rapidly. In 2019, the value-added of industrial strategic emerging industries rose by 8.4 percent over the previous year, 2.7 percent faster than that of industrial enterprises above the designated size. The output of emerging industrial products also increased rapidly, with urban rail vehicles rising 32.6 percent and solar batteries rising 26.8 percent. From January to November, the business revenues of strategic emerging industries, science and technology and high-tech services increased by over 12 percent. In 2019, online retail products sales increased by 19.5 percent. The total volume of express deliveries amounted to 63 billion pieces, up 24 percent year on year.

Sixth, the economy continues to benefit from the dividend of reform and opening up. The reforms - featuring streamlining governance and delegating power, integrating the delegation of power and strengthening management, and optimizing services — have gone deeper. The business environment has also improved significantly. According to the World Bank report 2019, China ranks 31st and has soared 15 places from last year. The reform of the finance and taxation system has made solid progress and a trend of multi-dimensional opening-up has been steadily growing. It is estimated that the total tax and fee cuts will surpass 2.3 trillion yuan. China hosted the second Belt and Road Forum for International Cooperation, the Conference on the Dialogue of Asian Civilizations, and the second China International Import Expo. It has also set up another batch of pilot free trade zones and expanded the Shanghai Pilot Free Trade Zone. Economic and trade exchanges have been active between China and the countries and regions involved in the Belt and Road Initiative (BRI). In 2019, the total volume of trade in goods between China and other BRI countries increased by 10.8 percent, growing 7.4 percent faster than the overall growth of imports and exports. According to statistics from January to November, Chinese businesses' non-financial direct investment in BRI countries accounted for 12.9 percent of China's total non-financial FDI during the same period.

In 2020, we will surmount difficulties to successfully fulfill the 13th Five-year Plan and to win a decisive victory for the completion of the goal of building a moderately prosperous society in an all-round way. We will lay a solid foundation for the development of the 14th Five-year Plan and for the opening of the second Centennial goal. We must also promote reasonable growth of the economy and the steady increase of the quality of its growth, as well as the high-quality development of the economy. We must adhere to stable macro policies, flexible micro policies and basic social policies, so as to improve the effectiveness of forward-looking and targeted policies. We must accelerate the implementation of key projects, improve the basic industrial capacity and the quality and capacity of consumption. We must also drive end consumption to unleash strong domestic market potential. We will increase investment in research and development, speed up the transformation and application of scientific and technological achievements, give full play to the principal role of the technological innovation of enterprises, and promote industrial upgrading and development. At the same time, we will continue to deepen supply-side structural reform, secure progress in critical battles against potential risk, poverty, and pollution, and work to make up for weaknesses. We will continue to promote reforms to streamline administration, delegate powers, improve regulation, and upgrade services, so as to optimize the business environment, actively explore diversified markets, and expand a high-level of opening up. We will promote the optimization and adjustment of the economic structure, accelerate industrial upgrading, and keep the economy moving towards high-quality development.

The Financial Times:

I notice that China's birth rate has dropped to 10.48‰ in 2019, its lowest level in history. My question is, what effect will this have on China's economy? China's birth rate has continued to fall since the country implemented a comprehensive "two-child policy" in 2016. What measures will the Chinese government take to address the situation?

Ning Jizhe:

There were 14.65 million births in China in 2019 and the country has a high birth rate of above 10‰. You also mentioned that this figure was 0.58 million less than that of 2018. Having said all this, we should not lose sight of the relatively large number of newborns last year. If you pay attention to the number of births reported these years, you will find that the figure for 2018 was 2 million less than that of 2017, while the figure for 2017 was 0.63 million less than that of 2016. Compared to previous years, 2019 saw a slower decrease in the birth population due to the implementation of the comprehensive "two-child policy" you have just mentioned. The second child (or more) in families accounted for 59.5% of total newborn babies in the past year, a relatively high level which shows the success achieved by China's birth policy.

Of course, we still face changes in our demographic structure, especially the ageing of our population. We have published the proportion of our ageing population, that is, the percentage of people aged 60 or above and the percentage of people aged 65 or above. Here I would like to call to your attention that 2019 saw a relatively smaller increase in the number of people aged 60 or above than in most previous years. Of course, these statistics should be analyzed under their respective historical circumstances.

Demographic statistics are collected to truly and accurately reflect the changes in the size and structure of China's total population, as well as its geographical distribution, transfer and mobility. These figures are essential for analysts to study the trend of population development and providing statistical support for population policy-making. 

The State Council has planned to conduct the seventh national population census. Chinese Vice Premier Han Zheng hosted a meeting of the leading group for the seventh national population census in Beijing on Jan. 6, 2020. The census will begin at 12am on Nov. 1, 2020. The census, carried out every 10 years, will survey the total amount, structure and distribution of the population using modern scientific statistical methods, providing a scientific basis for us to formulate the 14th Five-Year Plan and move forward to the next step of reaching our three strategic goals for achieving the socialist modernization in China. Thank you.

Hu Kaihong:

Today's press conference concludes here. Thank you Mr. Ning, and thank you all.

.

Read in Chinese

Speakers:

Zou Zhiwu, deputy head of the General Administration of Customs (GACC)

Huang Guohua, deputy head of GACC Department of Statistics

Chairperson:

Shou Xiaoli, Press Bureau of the State Council Information Office

Date:

Jan. 14, 2020

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference. This is a routine conference on China's annual economic data. We are delighted to invite Mr. Zou Zhiwu, deputy head of the General Administration of Customs (GACC), to introduce China's import and export performance in 2019. He will also answer some of your questions. Also present is Mr. Huang Guohua, deputy head of GACC Department of Statistics. 

Now, I give the floor to Mr. Zou Zhiwu.

Zou Zhiwu:

Ladies and gentlemen, friends from the media, good morning. It's a great pleasure to meet you here. This is the first press conference of the year for the GACC. I'd like to take this opportunity to thank you for your care, attention and support for our work in 2019. I also want to take this opportunity to wish you a happy Spring Festival. Now, I'll first make a brief introduction of China's import and export performance in 2019, and then answer some of your questions.

In 2019, the total volume of the import and export of goods reached 31.54 trillion yuan, a year-on-year increase of 3.4%. Total export volume was 17.23 trillion yuan, a gain of 5%, while the import volume was 14.31 trillion yuan, up 1.6% from the year before, resulting in a trade surplus of 2.92 trillion a year-on-year gain of 25.4%.

Last year's foreign trade saw steady development with higher quality, showing six specific characteristics.

First, the scale of imports and exports rose quarter by quarter. Broken down into quarterly figures, the total volume was 7.03 trillion yuan, 7.68 trillion yuan, 8.26 trillion yuan and 8.59 trillion yuan respectively. The figure of December alone was 3.01 trillion yuan, a month-on-month increase of 12.7%. Specifically, the total volume of exports last month was 1.67 trillion yuan, up 9% from the month before, while imports rose 17.7% to 1.34 trillion yuan. In December, the volume of foreign trade, imports and exports all set historical highs. 

Second, the ranking of China's major trade partners changed, with ASEAN moving into second place, but the E.U. remained China's top trade partner, with the total volume of foreign trade increasing 8% to 4.86 trillion yuan. In regard to ASEAN, the total volume increased by 14.1% to 4.43 trillion yuan. The figure for the United States fell 10.7% to 3.73 trillion yuan. Japan was our fourth largest trade partner with the total volume up 0.4% to 2.17 trillion yuan. The total volume of foreign trade with countries along the Belt and Road was 9.27 trillion yuan collectively, increasing 10.8%, 7.4 percentage points higher than the total growth rate for the year.

Third, for the first time in history, private enterprises surpassed foreign-invested enterprises, and became the largest group involved in foreign trade. In 2019, the total trade of private enterprises reached 13.48 trillion yuan, a year-on-year increase of 11.4%, accounting for 42.7% of China's total, 3.1 percentage points higher than that achieved in 2018. Specifically, the volume of exports was 8.9 trillion yuan, up 13%, while imports were valued at 4.58 trillion yuan, up 8.4%. In comparison, total imports and exports handled by foreign-invested enterprises was 12.57 trillion yuan, accounting for 39.9% of the national total, while the volume of State-owned enterprises was 5.32 trillion yuan, or 16.9% of the total. 

Fourth, the trade structure further improved, with general trade accounting for a larger share. In 2019, in the general trade sector, the total trade volume was 18.61 trillion yuan, a year-on-year gain of 5.6%, and accounting for 59% of China's total foreign trade, a figure 1.2 percentage points higher than 2018. Specifically, the volume of exports was 9.95 trillion yuan, up 7.8%, while imports reached 8.66 trillion yuan, up 3.1%. In comparison, in the processing trade, the trade performance was worse, declining 5.1% to 7.95 trillion yuan, accounting for 25.2% of the total.

Fifth, the majority of exported goods were mechanical and electrical products and labor-intensive products, with the former category accounting for nearly 60% of the total. Last year, the total volume of exported mechanical and electrical products was 10.06 trillion yuan, up 4.4%, accounting for 58.4% of the total export volume. Specifically, the volume of exported electrical and electronic products was 4.63 trillion yuan, a gain of 5.4%, while that of mechanical products was 2.87 trillion yuan, up 1.4%. In regard of seven labor-intensive products, including textiles and garments, the total export volume was 3.31 trillion yuan, up 6.1% yearly.

Sixth, the import volume of iron ore, crude oil, natural gas, soybeans and other commodities increased. In 2019, 1.07 billion tons of iron ore was imported, a gain of 0.5%; that of imported crude oil was 506 million tons, up 9.5%; that of imported natural gas reached 96.56 million tons, up 6.9%; and that of imported soybeans was 88.51 million tons, a gain of 0.5%. The import of meat products increased rapidly, such as pork (2.11 million tons, up 75%), while imported beef rose 59.7% to 1.66 million tons.

These are the major characteristics of China's foreign trade in 2019.

In the past, the GACC carefully implemented the decisions and plans made by the Communist Party of China (CPC) Central Committee and the State Council. We put enormous energy into shortening the time needed to clear customs. We continued to carry out reforms to streamline administration, delegate powers, and improve the regulatory framework and services. We further improved the business environment of various ports. In 2019, the time needed to clear customs for importers and exporters was reduced by 42.3% and 42.4% to 41.4 hours and four hours respectively. The change was remarkable.

Generally speaking, despite growing risks and challenges domestically and abroad, last year, China's foreign trade achieved steady improvement in quantity and quality. Currently, world economic development continues to slow down, while more and more factors have become uncertain. In the future, the GACC will continue to uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We will fully implement the decisions of the 19th CPC National Congress, the second, third and fourth plenary sessions of the 19th CPC Central Committee, as well as the Central Economic Work Conference. We remain committed to the general principle of pursuing progress while ensuring stability. We will continue to focus on supply-side structural reform. We will work to ensure stability in employment, financial operations, foreign trade, foreign investment, domestic investment, and expectations. We will also continue to improve the business environment of various ports. We will work to advance higher-level reform and opening-up. We will promote a steady, quality development of foreign trade. We will better serve the economic and social development of the country, and make a contribution to building a moderately prosperous society in all respects.

Thank you.

Shou Xiaoli:

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

CCTV:  

According to the latest data you have just released, the total value of imports and exports in 2019 increased by 3.4% year-over-year. What's the main reason for the growth of China's foreign trade when the economic situation is not favorable? In addition, facing the complicated and severe economic environment at home and abroad, how do you see the trend of China's foreign trade in 2020? Thank you.

Zou Zhiwu:

Thank you for your questions. In 2019, the external environment for China's foreign trade development is indeed complicated and severe. Economic growth globally has continued to slow down, and risks and challenges at home and abroad have risen significantly. However, even in such a situation, China's foreign trade still maintains steady growth, and the quality of that growth is being improved. Now that the domestic figures have been released, we also need to consider international data. Based on our preliminary analysis, China is still expected to maintain its position as the world's biggest trader of goods in 2019. As we said just now, our imports and exports increased by 3.4%, denominated in RMB. If the total value is denominated in U.S. dollars, it falls slightly. However, our exports still showed a positive growth of 0.5%. According to the latest WTO data for the first 10 months of the year, China's export performance is the best among the top 10 traders in the world.

In my opinion, there are three main reasons behind this good performance:

The first is the stability of the Chinese economy. The basic development trend remains unchanged. As is shown in the data of the previous 11 months, value-added industrial output increased by 5.6% year-over-year, total retail sales of consumer goods increased by 8% year-over-year, and fixed asset investment increased by 5.2% year-over-year. 

GDP continues to rise rapidly, with a higher growth rate than other major economies. The strong leadership of the Communist Party of China, the significant advantages of the socialist system with Chinese characteristics, solid material and technological foundations established since the reform and opening up, large-scale market and the potential of domestic demand all laid a solid foundation for foreign trade growth. That, I believe, is the main reason.

Second, speaking overall, China's economy is relatively resilient and this is also reflected in the field of foreign trade. We are the world's largest manufacturing country with a complete industrial system. More than 220 kinds of industrial products rank first in the world, and the domestic industry has provided strong support for the development of foreign trade. We have a large number of foreign trade enterprises. Last year, the number of enterprises with actual import and export activities reached 499,000. In particular, private enterprises with more flexible production and management show a stronger sign of vitality in foreign trade development. We also said that one of the characteristics of foreign trade in 2019 is that for the first time, private enterprises have surpassed foreign-funded enterprises to become the largest foreign trade entity, with the proportion of exports exceeding 50%. Our trading partners are all over the world. In 2019, while the trade with our main partners such as the European Union and ASEAN grows, the imports and exports to emerging economic markets -- countries along the "Belt and Road", Africa and Latin America -- increased by 10.8%, 6.8% and 8% respectively.

Zou Zhiwu:

Third, policies created to ensure stability in foreign trade have produced continuous effect. Since 2018, China has introduced a host of policies to ensure stability in foreign trade and foreign investment, and taken strong measures to cut taxes and fees, effectively reducing the corporate burden. Specifically, we raised the export rebate rates for some products in two batches, lowered import tariffs for consumer goods and accorded zero tariff treatment to some imported medicines. These policies and measures have produced obvious effects. For example, the export value of the products enjoy higher rebate rates grew up by 7.7%, and the imports of consumer goods and medical supplies increased by 19% and 25.8% respectively.

Meanwhile, China has deepened reforms to streamline administration, delegate powers and improve regulation and services, in order to energize market entities, create a more business-friendly environment at the ports, and facilitate cross-border trade. According to a report released by the World Bank, China's ranking on "trading across borders" index under the "doing business" heading climbed nine places to 56 in 2019, after jumping 32 positions in 2018. 

Since there is no clear customs clearance efficiency between European Union (EU) countries, the customs clearance time among the 28 members is considered as "zero". So, if all the E.U. countries are counted as a single economy, China will achieve a further improvement in its ranking.

As to the foreign trade situation in 2020, I think global economic growth continues to slow, and the world economy is still in a period of deep adjustment following the 2008 financial crisis. Amid growing uncertainties, risks and challenges across the world, China continues to face a complex external environment for developing foreign trade. However, the country is continuing its efforts to deepen supply-side structural reform, and implement policies to ensure stability in employment, financial operations, foreign trade, foreign investment, domestic investment and expectations. This means continuous improvement in the business environment, ensuring the vitality of market players and the structure of foreign trade. The trend of accelerated change of growth drivers will continue for a long time. China's foreign trade is expected to maintain stable growth in 2020, with the quality of development further enhanced. Thank you.

Guangming Daily:

We noted that there was a notable rise in China's imports and exports in December, recording double-digit growth year-on-year. What are the specific drivers behind the growth? Thank you.

Zou Zhiwu:

Thank you for the question. I would like to invite Mr. Huang to answer it.

Huang Guohua:

Thank you for the question. China's foreign trade did indeed register a double-digit growth in December, with the monthly value of both imports and exports reaching a new high. The following are the main reasons.

First, the purchasing managers' index (PMI) for China's manufacturing sector rose for two consecutive months – November and December, - fueling imports of some raw materials and energy products. For example, the imports of iron sand, copper grit and refined oil increased by 17.2%, 31.9% and 10% respectively, boosting overall growth.

Second, as commodity prices rose in the international market, the average import price of some major commodities also went up. For example, the average import price of iron sand increased by 18% in December, and its import volume grew by 17.2%, thus contributing 1.5 percentage points of total import growth.

Third, China-US trade negotiations sent out encouraging signals, bolstering the confidence of companies. In December, the exports of toys, plastic products and furniture increased by 26.1%, 22.7% and 14.2% respectively. China's Central Administration of Customs conducts an online questionnaire survey of 3,000 foreign trade companies each month. Statistics of November and December showed that the number of companies optimistic about the export situation in the next two to three months increased, and the rise in December was the highest since the second half of 2018.

In addition, China's imports and exports decreased by 1.4% in Dec., 2018. Based on the weak performance, the foreign trade actually achieved a resumption of year-on-year growth in Dec., 2019.

Thank you.

Bloomberg:

I have two questions. First one, you mentioned that the changing U.S. dollar, or the foreign trade volume in U.S. dollars was less than in the yuan. Can you tell us the U.S. dollar value for 2019 trade in exports and imports?

My second question is, with the trade deal signed with the U.S., since China will agree to increase imports from the U.S., can this be done without diverting trade from other countries? Will China have to buy less from other nations to buy more from the U.S., or can China's total trade increase enough to cover the increased imports from the U.S.? Thank you.

Zou Zhiwu

Thanks for your questions. I would like to invite Mr. Huang to answer the first one, and I will answer the second.

Huang Guohua:

Thanks. Based on international rules, Chinese customs calculate the foreign trade value in the yuan. At the same time, we also calculate in U.S. dollars to compare with other countries.

As for your question, we calculate the value of exports and imports both in the yuan and U.S. dollars at the exchange rate released by the State Administration of Foreign Exchange every month, instead of the average exchange rate at the end of the year.

Zou Zhiwu:

As Mr. Huang has said, this is consistent with international practice. All countries use their currencies to measure trade statistics. Based on last year's data, there was a decline in China-U.S. trade.

However, since last November and December, imports from the U.S. resumed growth. In particular, imports in December totaled 78.83 billion yuan, an increase of 9.1%, of which agricultural products were valued at 14.1 billion yuan, a two-fold increase; 23,000 vehicles were imported, a 1.5-fold increase. On Dec. 6th, 2019, the Customs Tariff Commission of the State Council lifted the punitive tariffs on soybeans, pork and other goods purchased from the U.S. Therefore, in December, imports of American soybeans, pork, etc. all increased significantly.

The Sino-U.S. trade friction has indeed brought some pressure on China's foreign trade and foreign trade companies focusing on the American market. Although our exports to the U.S. declined, companies have explored market diversification. Exports to non-U.S. markets have increased, and overall exports continue to grow. We believe that the signing of the phase-one trade agreement will have a positive significance not only for China and the U.S., but also for the whole world, both in terms of trade and future economic development. Will it affect exports from other countries and markets to China after the phase-one trade deal? The answer is no. China has a huge market and multiple trade partners. I believe that with the joint efforts of both sides, China-U.S. economic and trade relations will achieve new progress amid mutually beneficial cooperation, which will promote the trade and economic development of countries around the world. Thank you.

CRI:

Would you like to brief us on the latest trade data between China and other countries along the Belt and Road routes. In addition, what's the highlight of your work? And how will "smart customs" serve the construction of the Belt and Road Initiative (BRI)? Thank you.

Zou Zhiwu:

Thanks for your questions. Firstly, I'll answer your question on China's trade with the BRI countries.

Since the BRI was proposed, the trade scale between China and countries along the Belt and Road routes has expanded continuously. In the 2014-2019 period, the total trade volume exceeded 44 trillion yuan ($6.40 trillion), with an average annual growth of 6.1%. China has become the biggest trading partner of 25 countries along the Belt and Road routes. Last year, trade with BRI countries was 9.27 trillion yuan ($1.35 trillion), an increase of 10.8%, or 7.4 percentage points faster than the country's aggregate foreign trade growth rate. It accounted for nearly 30% of the country's total import and export value, two percentage points higher than 2018. We can see that trade with countries along the Belt and Road routes has maintained robust growth.

We have implemented and promoted cooperation among customs and related supervision departments of countries along the routes in various fields, including inspection and quarantine, so as to facilitate trade and enhance border security. Last year, 198 documents were signed on inspection and quarantine cooperation, among which 89 were related to the BRI countries. As of last year, we had signed Authorized Economic Operator (AEO) agreements with 42 countries and regions, including 18 along the Belt and Road routes, ranking first worldwide. We have expanded the "single-window system" for international trade, connected with the platforms of 25 ministerial-level departments for sharing data, and provided almost 600 enterprise service items in 16 categories such as declaration of cargo, and payment of taxes and fees. We have opened seven "green channels" for fast passage of agricultural and sideline products with Kazakhstan, Vietnam, Mongolia and other countries, promoted China-Europe freight train services along the Belt and Road routes, and carried out coordinated vector surveillance with bordering countries along the routes, aiming to build a "healthy" Silk Road.

Just now, you mentioned "smart customs", which was initiated by Ni Yuefeng, head of the General Administration of Customs, at the second Belt and Road Forum for International Cooperation in April, 2019. With a core of intelligence construction, "smart customs" is a new concept for customs cooperation among different countries, and also a pragmatic measure taken by Chinese customs to serve the BRI's high-quality development. After the white paper on "smart customs" was released, we will further promote international cooperation on innovation and application of new technologies, jointly build information exchanging and sharing platforms with more countries, accelerate the construction and connection of the "single window system", and gain early harvest from pilot cooperation projects of "smart customs" with countries along the routes, in order to realize intelligent supervision, governance and cooperation, facilitate trade connectivity, and inject new impetus to the BRI construction. Thank you.

Phoenix Television:

According to recent statistics, private enterprises have become the biggest actor in China's foreign trade. What are the specific characteristics of private enterprises in terms of imports and exports in 2019? What are the new measures adopted by the General Administration of Customs of the PRC (GACC) to support the trading activities of private enterprises? Thank you.

Zou Zhiwu:

Thank you for your question. As you've mentioned, private enterprises have become the biggest actor in China's foreign trade in 2019. As far as we are concerned, their characteristics lie in the following three aspects:

First, they display growing vitality. The number of private enterprises engaged in foreign trade transactions reached 406,000 in 2019, up 8.7% year-over-year. The total number of private enterprises experiencing significant increase reflected the continuous improvement of the domestic business environment, and also showed China's internal driving force and the vitality of its foreign trade. The aggregate imports and exports generated by China's private enterprises went up 11.4% year-over-year in 2019, contributing to a 4.5% increase on our overall foreign trade.

Second, private enterprises in central and western China achieved rapid growth. Due to the Belt and Road Initiative, as well as their comparative cost advantage, the imports and exports of private enterprises in central and western regions achieved the strongest growth. In 2019, the foreign trade generated by private enterprises in the central and western areas surged 28.3% and 22.4% respectively, 19.5 and 13.6 percentage points higher than that of the eastern region. The top four provinces with the highest growth rate in this regard were Tibet, Hunan, Guangxi and Anhui.

Third, private enterprises also show a growing ability to tap emerging markets. In 2019, their exports to all the major markets registered a growth trend. While maintaining the advantages to the traditional markets, private enterprises' exports to ASEAN countries, Latin America and Africa rose 25.6%, 11.4%, and 15.6% respectively, outpacing the national average growth in this regard.

Customs implement the decisions and arrangements made by the central government and strive to create a more favorable development environment for private enterprises. For example, we have introduced a lot of favorable measures, because micro and small enterprises account for a relatively high proportion of private enterprises engaged in foreign trade, but there are certain pressures facing them, such as capital turnover, taxation, and financing. To improve the situation, we have introduced a reform of tariff guarantee insurance and introduced commercial insurance mechanisms to the tax system. Private enterprises are major players and benefit most from such reform. This action clarified that, as long as the enterprises have a credit rating of BBB and above, they can claim customs guarantee insurance to guarantee their customs clearance and taxation. This reduces the financing cost of the enterprise. Moreover, it can greatly improve the efficiency of customs clearance because it provides important guarantees. For another example, the Customs implemented the central government decision of reducing taxes and fees. At present, administrative fees have been completely cancelled. A column on the portal website is set up to show publicly the fees charged according to regulations. "No notice, no fees." The Customs will make sure that the tax burden of private enterprises is effectively reduced.

In the next step, we will continue to follow the instructions of the Central Economic Work Conference and implement the work arrangements made by the CPC Central Committee and the State Council to support the development of private enterprises. We also plan to introduce more specific, targeted and favorable measures to resolve the concerns of private foreign trade companies. We will do our best to improve supervision, provide better services, and further optimize the business environment of private enterprises. Thank you.

Prasar Bharati:

I have two questions. First, can you provide us with the data of the bilateral trade of India and China. Second, what steps is China taking to reduce the trade deficit with India?

Zou Zhiwu:

Thank you for your question. Mr. Huang please answer this one.

Huang Guohua:

According to our statistics, the total trade value between China and India in 2019 was 639.52 billion yuan, an increase of 1.6% year-on-year. China's exports to India were 515.63 billion yuan, an increase of 2.1%, and imports were 123.89 billion yuan, a decrease of 0.2%. The trade surplus in China's favor was 391.74 billion yuan. The two countries are important emerging economies. Strengthening exchanges and cooperation are of great significance to both countries, and will promote global progress and prosperity.

In October last year, President Xi Jinping was invited to India to attend the second informal meeting with Indian Prime Minister Narendra Modi, which enhanced the in-depth communications between the two countries, and promoted mutually beneficial cooperation in various fields. At present, China's export products have a relatively strong competitive advantage in the Indian market. At the same time, we also welcome more Indian high-quality products to enter the large Chinese market. We believe that deepening our economic and trade cooperation is conducive to promoting a healthier, smoother and more balanced development of China-India trade. Thank you.

China News Service:

We have noticed that China recently issued the "Guiding Opinions of the CPC Central Committee and the State Council on Promoting High-quality Trade Development." What new progress was made in this regard in 2019? Thank you.

Zou Zhiwu:

Thank you for your question. Last year, the trend of high-quality development and steady improvement in China's foreign trade was obvious. I think it is mainly reflected in the following aspects:

The first is the continuous optimization of the trade mode and structure. In 2019, the import and export of general trade, which with a longer industrial chain and higher added value, can better reflects the independent development capabilities of enterprises, increased by 5.6%, accounting for 59% of our foreign trade, and this proportion increased by 1.2 percentage points when compared with the statistics of 2018.

Second, new trade dynamics increased significantly. Last year, new forms of foreign trade, such cross-border e-commerce, continued to flourish. Imports and exports through the Customs' cross-border e-commerce management platform reached 186.21 billion yuan, an increase of 38.3%. Imports and exports through market procurement methods reached 562.95 billion yuan, an increase of 19.7%. Together, they contribute an increase of nearly 14% to overall foreign trade growth.

Third, the trade market has become more diversified. While Chinese companies continue to cultivate their traditional export markets, they also continue to develop new ones with remarkable results. Just now, we talked about the Belt and Road Initiative. In 2019, China's exports to the countries along the Belt and Road, as well as Latin American countries, saw an increased proportion of the total. This is a very obvious result of opening new markets.

Fourth, there has been a significant increase in the international competitiveness. In 2019, the price index of China's exported commodities rose by 2.8%, the price index of imported commodities rose by 1.4%, and the terms of trade index stood at 101.4, indicating that, with the same amount of goods being exported, we can exchange them for a greater number of commodities. From this perspective, our competitiveness has been further improved. According to the latest WTO data, from January to September 2019, the global market share of China's mechanical and electrical products, and labor-intensive products increased by 0.2 and 0.9 percentage points, respectively. At the same time, exports of some high value-added products maintained good growth. For example, last year, China's integrated circuit exports increased by 25.3%, semiconductor device exports by 26.3%, solar cell exports 47.5%, and metal processing machine tools nearly 15%. The effect of export brand building is also quite significant. Last year, the export of Chinese-brand products was 2.9 trillion yuan, an increase of 12%, accounting for nearly 17% of total export value. This number has also increased by 1.1 percentage points from 2018.

Fifth, imports of consumer products for people's livelihoods have grown rapidly. Last year, we successfully hosted the second China International Import Expo, benefiting from the lowering of the import value-added tax rate and the cancellation of some pharmaceutical import tariffs. We actively expanded the import of consumer goods, enriched the supply of domestic goods, and better met the people's growing needs for a better life. In 2019, China's imports of consumer goods increased by 19%, including imports of fruits, cosmetics and aquatic products that increased significantly, reaching 39.8%, 38.8% and 37.6% respectively. The import of electric manned vehicles increased 1.2 times, and the import of human vaccines increased by nearly 90%, which show that our huge consumer market has played a very important role in driving the growth of consumer goods imports. Thank you.

Market News International:

It was reported this morning that the United States has dropped its designation of China as a currency manipulator. My question is, what effect it will have on China's export in 2020? Could you please elaborate on China's export prospects this year? Thank you.

Zou Zhiwu:

In regard to this move, I can simply tell you that it is the correct choice and is of positive significance.

As for exports, with the anticipated signing of the phase one economic and trade agreement between China and the United States, I believe the good news will have a positive effect on the bilateral and even global trade. Thank you. 

Press Trust of India (PTI):

You have just said the India-China trade grew at about 1.6 percent last year. There was a logical expectation that China-India bilateral trade in 2019 would exceed $100 billion for the first time. What was the reason that the final figure turned out to be lower than the expectation? Could you please brief us some data of specific goods exported to China by India, such as the Indian medicines exported to China? 

Zou Zhiwu:

Thank you for your question. In regard to China-India bilateral trade, Mr. Huang has already given you a general introduction. As for the detailed data, especially of some specific products, we may talk about it after the press conference. Thank you. 

Shou Xiaoli:

The last two questions.

Economic Daily:

As Mr. Zou mentioned just now that there are still severe internal and external challenges in regard to China's foreign trade. My question is, from what aspects will customs agencies focus on next to stabilize the growth and promote the development of foreign trade? Thanks.

Zou Zhiwu:

Thanks for your question. In recent years customs agencies all around China have resolutely implemented the decisions and arrangements of the CPC Central Committee in regard to modernizing the national governance system and its capabilities, taken a series of reform measures, improved the business environment at ports and promoted the quality of foreign trade while ensuring continued stability. Now, please allow me to introduce to you the key emphases in our work:

First, efforts have been made to continuously deepen the reforms to streamline administration, delegate powers, improve regulation, and upgrade services. We have canceled 92 certificates out of a total 116 in regard to customs clearance, simplified administrative review and approval procedures, and realized full coverage in all pilot projects in regard to the separation of business licenses and certificates required for starting a business. At the same time, we have further simplified regulatory documents related to the import and export trade, reducing them from 86 types to the present 44 to be examined at the ports. Except for an individual document or two being highly confidential, all can be verified online. This frees enterprises from such cumbersome procedures formerly handled with paper documents. Besides this, we have cut down the checking catalogue, implemented the practice of "clearance first and casual inspection later" concerning bulk imports of resources, thus greatly reducing the time goods are detained at port. We have also deepened the spot check mechanism, meaning the object to be checked is chosen at random, the checker is appointed at random and all information that can be open to the public shall be so handled with no exception. By now, 29 administrative spot check items have already been opened to public scrutiny. 

Second, as the inspection and quarantine function and personnel are now a part of the customs arrangements, we have organized our work as required by the CPC Central Committee, in particular in accordance with the idea that there should be "chemical reactions" in reform put forward by General Secretary Xi Jinping. We have combined the items required to be certified or written into the original customs inspection arrangements and items in the original customs clearance into one, reducing customs-related matters from more than 200 in these two aspects down to the present 105. As the same time, by following the advanced examples of some countries, we have implemented five innovative practices. For instance, in the reform of "declaration in two steps" now, when a cargo arrives at port, a brief declaration can be made based on logistics information as the first step, and, after declaring nine items, the clearance procedure can be then handled, so that the complete declaration can be made within 14 days even when the enterprise has already taken the delivery of the cargo. This practice greatly reduces the time needed for a customs declaration as well as the cost of goods detained at port. 

Third, we are dedicated to China's regional development. By studying customs regulatory plans, we have given full support to the construction of Hainan free trade port. We have formulated and promulgated customs supervision, control and statistical methods and measures in Yangshan Special Comprehensive Bonded Area to support the construction of the surrounding areas related to Shanghai Pilot Free Trade Zone. We have formulated 26 customs measures and an integrated working mechanism exclusively for customs to support integrated development in the Yangtze River Delta Region. We have earnestly implemented the development plan for the Guangdong-Hong Kong-Macao Greater Bay Area, established a cooperative mechanism between customs agencies of Chinese mainland and Hong Kong and Macau and between other regulatory authorities thereof, and promulgated special measures in this regard. 

Fourth, efforts have been made to promote the high-quality development of comprehensive bonded zones. We implemented the policies released by the State Council on boosting the high-level opening-up and high-quality development of the comprehensive bonded zones, coordinated with relevant departments in formulating more than 20 supporting measures, and promote the measures to be carried out as soon as possible. Last year, the total import and export value within the comprehensive bonded zones throughout China reaches 2.6 trillion yuan, a year-on-year increase of 13% and the growth of import and export figures in the comprehensive bonded zones are, in general, higher than the national average by 9.7%. In the frontline of comprehensive bonded zones, there are more than 2,500 enterprises with export and import records or performance ratings, 25.3% higher than that in the entire country. 

Fifth, efforts have been made to innovate the regulatory system and boost the development of new business formats. We have positively adapted ourselves to the development of new business formats, such as comprehensive foreign trade service platforms. Just now we mentioned market purchasing, which matches well with the development of cross-border e-commerce. We have recently developed and implemented a measure concerning the return of goods in cross-border e-commerce, securing a smooth channel. This measure has now been through pilot work in more than 10 customs agencies and will soon be spread to the whole country. 

The sixth is to support the development of small and medium-sized enterprises. As I have introduced work in this regard when I talked about private enterprises just now, I will say no more. 

In order to stabilize employment, finance, foreign trade, foreign investment, investment and expectations, a target set by the CPC Central Committee, we will roll out some new measures in 2020. First, we will further refine and implement the reform measures that have been introduced; second, we will put forward targeted reform plans to address the practical needs of enterprises. Generally speaking, we will follow the guidance regarding streamlining administration, delegating power, strengthening regulation and improving services, deepen the inspection and quarantine service's integration with the Customs, and ensure the Customs administration becomes more optimized, synergetic, and efficient. Thank you.

Xinhua News Agency:

My question is related to President Xi Jinping's upcoming visit to Myanmar. Can you brief us the trade between China and Myanmar in 2019 and any special arrangements this year? And you just mentioned that the private economy has become the largest part of foreign trade, and private enterprises in the central and western regions are particularly dynamic. However, this is not backed by the availability of statistics on foreign trade in the eastern, central, western, and northeastern regions in 2019. Can you give us a brief introduction on it? Thank you.

Zou Zhiwu:

Mr. Huang will give you details on the trade between China and Myanmar. As a whole, this is progressing smoothly in various aspects. As for the performance of private enterprises in eastern and western China, I will provide you specific statistics soon after this press conference concludes. 

Huang Guohua:

I'd like to talk about the bilateral trade between China and Myanmar. In 2019, the trade volume hit 128.91 billion yuan, up 28.5 percent year-on-year. Exports reached 84.9 billion yuan, up 22.1 percent and imports totaled 44.01 billion yuan, up 42.8 percent. China and Myanmar are good neighbors supporting each other. The two countries share a high-degree of mutual political trust, seek to further deepen economic cooperation and closely collaborate on global and regional issues. Over the past 70 years, the relationship between China and Myanmar has continuously developed based on mutual respect, mutual trust and mutual assistance, setting a model of a relationship between big and small countries featuring peaceful coexistence and win-win cooperation. President Xi's visit will further promote connectivity between the two countries. I believe the two sides will advance high-quality Belt and Road cooperation, boost the building of the China-Myanmar Economic Corridor with three-end support, facilitate major connectivity projects, and bring benefits to the two countries and their people. Thank you.

Shou Xiaoli:

Thanks go to the two speakers and the media representatives, and that's the end of today's press conference.

Translated and edited by Chen Xia, Wang Yiming, Zhang Liying, Cui Can, Lin Liyao, Zhu Bochen, Zhang Rui, Li Xiao, Chen Yinjun, Fan Junmei, Zhang Junmian, Li Huiru, Wang Yanfang, Zhou Jing, He Shan, Wang Qian, Wang Wei, 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:

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

Zhu Shumin, CBIRC vice chairman

Xiao Yuanqi, CBIRC chief risk officer, director of general office, and spokesperson

Mr. Ma Xueping, CBIRC chief accountant

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office

Date:

Jan. 13, 2020

   

Xi Yanchun: 

Ladies and gentlemen, good afternoon. Welcome to this press conference. Today, present with us are: Mr. Huang Hong, vice chairman of the China Banking and Insurance Regulatory Commission (CBIRC); Mr. Zhu Shumin, CBIRC vice chairman; Mr. Xiao Yuanqi, CBIRC chief risk officer, director of general office and spokesperson; and Mr. Ma Xueping, CBIRC chief accountant. They will introduce how China's banking and insurance sectors have performed, how they have served the real economy and controlled risks.

Now, I'll give the floor to Mr. Huang Hong.

Huang Hong:

Friends from the media, good afternoon. It's a great pleasure to meet you here. I'd like to thank you for your long-term attention and support toward the work we do in the area of financial regulation. Last Friday, the CBIRC convened a meeting to discuss our work in this field. At the meeting, we reviewed last year's work, analyzed the current economic and financial situation, and made plans for our work this year. 

In 2019, the CBIRC continued to uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, carefully implemented the decisions and plans made by the Communist Party of China (CPC) Central Committee and the State Council, and further improved the leadership of the CPC and the building of the Party in the banking and insurance sectors. We continued to enhance the financial sector's service to the real economy, made resolute efforts to guard against and defuse financial risks, further carried out reform and opening-up, and promoted the quality development of the banking and insurance sectors. So far, both sectors are developing well and their ability to serve the real economy has been further enhanced. In major areas, progress has also been made in the managing and tackling of risks. Supply-side reform in the financial sector has also been deepened and the management of the financial sector has been improved. Overall, a solid foundation has been laid for the continued quality development of the industry.

In 2020, the CBIRC will rally even closer around the CPC Central Committee with Comrade Xi Jinping at its core. We will strengthen our consciousness of the need to maintain political integrity, think in terms of the big picture, follow the leadership core, and keep ourselves aligned with it. We will also increase our confidence in the path, theory, system, and culture of socialism with Chinese characteristics; resolutely uphold General Secretary Xi Jinping's core position in the CPC Central Committee and the Party as a whole, and resolutely uphold the CPC Central Committee's authority and its centralized and unified leadership. We will give high priority to achieving the goal of building a moderately prosperous society in all respects and remain committed to the general principle of pursuing progress while ensuring stability. We will give our full support to the quality development of the Chinese economy, further implement the reform and opening-up policy, and stay alert to guard against and defuse financial risks.

Now, I'd like to answer some of your questions with the help of the other spokespersons. Thank you.

Xi Yanchun:

Thanks for Mr. Huang's brief introduction. Now, the floor is open to questions. Please identify your media outlet before raising your question.

CCTV:

This year is the last year for the three tough battles on risk management, poverty reduction and pollution control. What did the CBIRC do last year to guard against and defuse major financial risks? And what are the plans for this year? Thank you.

Huang Hong: 

Thank you for your questions. I'll answer them. In 2019, the CBIRC carefully implemented the decisions and plans made by the CPC Central Committee and the State Council. We continued to enhance financial regulation, resolutely rectified unlawful market practices, and carefully tackled major risks. We have achieved a balance between stable growth and risk control, and won the crucial war of guarding against and defusing financial risks. Generally speaking, we have accomplished the following:

First, we have placed effective controls on credit default risks and increased our efforts to identify and address non-performing loans. In 2019, the total value of non-performing loans we handled hit 2 trillion yuan. All loans that remained unpaid 90 days after their due date in commercial banks had been regarded as non-performing loans. We have also steadily reduced enterprise debt risks. We established the creditor committee mechanism, with approximately 19,200 creditor committees set up nationwide. The total amount of market-based swapping of debt has reached 1.4 trillion yuan. Overall, these measures have helped enterprises reduce their leverage and debts and increase their profits.

Second, we continued to dismantle high-risk shadow banking. We further standardized interbank, finance, off-balance sheet and trust businesses; reviewed and cut financial assets with complex structure, tending to divert from the real economy, or involving contagion risks. As a result, risks from shadow banking and cross-industry financial businesses have continued to diminish. Over the past three years, the size of shadow banking dropped by 16 trillion yuan from its historical peak.

Third, we effectively managed risks in the online lending industry. Risks in the online lending industry have declined dramatically. By the end of 2019, China had 248 online lending agencies in operation, a decrease of 76% from the beginning of the year. The number of agencies and borrowers as well as the debit balance all fell for 18 consecutive months.

Fourth, we made consistent efforts to address acute problems in the financial sector. The number of problems in the market have fallen steadily, and any increases have also been effectively contained. A number of major illegal fund-raising cases have been severely investigated and dealt with. We have also intensified our oversight and accountability mechanisms. Last year, we punished 2,849 banks and insurance agencies, held 3,496 responsible officials to account, and handed out a total of 1.45 billion yuan in fines and confiscations. 

Fifth, we gradually dealt with troubled financial institutions. The CBIRC, in collaboration with the People's Bank of China, took over control of Baoshang Bank, and steadily pressed ahead with the restructuring and risk mitigation of Hengfeng Bank and the Bank of Jinzhou.

Sixth, we resolutely curbed the financialization and any potential bubbles in the real estate market. We investigated and punished the illegal flow of banking and insurance funds into the real estate sector. Consequently, the growth rate of real estate loans has decreased by 3.3 percentage points year on year.

Huang Hong:

2020 is the final year for us to finish the building of a moderately prosperous society in all respects and complete the tasks set out in the 13th Five-Year Plan. 2020 will also be a year for the decisive victory against financial risks. The CBIRC will continue to guard against risks as planned, make efforts to win the hard battle against potential risks with determination, and adhere to the bottom line of preventing systemic risks. The following are the tasks that are high on our agenda this year.

First, we will properly deal with high-risk institutions, enhance accountability of various parties, do a good job on coordination, cooperation and policy guidance, as well as optimize the recovery and resolution mechanism of banking and insurance agencies.

Second, we will continue to dismantle shadow banking and significantly reduce high-risk businesses to prevent its resurgence.

Third, we will strengthen the supervision over the quality of assets, continuously increase penalties for non-performing assets, and improve the accuracy of asset classification.

Fourth, we will firmly implement policies to contain housing market speculation, strictly observe regulatory rules such as the management of credit risk concentration, and prevent the illegal flow of credit funds into the real estate market, as well as continue to curb its financialization and any potential bubbles that may emerge.

Fifth, based on the premise of national stability, we will severely punish or prosecute activities of financial groups that were illegally established that are in violation of laws and regulations. We will also manage their liquidation well, retrieve illicit money and losses, as well as promote their reform and restructuring.

Sixth, we will push forward the campaign against online lending and do a good job in disposing their existing assets. We will also ensure that closed financial institutions exit the market or transform themselves into other businesses, as well as enhance regulations on online insurance.

Seventh, we will continue to work together with local governments to deepen the reform of state-owned enterprises, accelerate economic restructuring, and defuse hidden debt-related risks.

Eighth, we will guard against and defuse external risks, step up stress tests for banking and insurance agencies, and improve our response plans to stabilize market expectations.

Ninth, we will further strengthen weaknesses in regulation by promoting the use of supervision technologies, speeding up the building of a regulatory big data platform, improving regulatory systems, and enhancing the ability of regulatory officials to impose stronger and more effective regulation. Thank you.

Economic Daily:

At present, China faces increasing downward pressure on economic growth and some enterprises have even faced difficulties in their operations. Against this backdrop, what concrete measures have been taken by banking and insurance agencies to support the real economy, and how can profitability and gain for enterprises be increased? Thanks.

Zhu Shumin:

Under the current circumstances where economic growth is slowing in our country, the China Banking and Insurance Regulatory Commission has taken the initiative to motivate banks and insurers to continuously strengthen their support in the key areas and weak links in China's economic and social development. It is also urging them to help fulfill the effective financial needs of the real economy and to help ensure stability in employment, financial operations, foreign trade, foreign investment, domestic investment, and expectations. In 2019, the banking industry witnessed an increase of 17 trillion yuan in loans, which marked a year-on-year growth of 1.1 trillion yuan. The insurance industry provided about 6,470 trillion yuan in insurance for the entire nation, and claims and payouts totaling 1.29 trillion yuan. These are the main areas of our work: 

First, in the transition period when new economic growth drivers are replacing the old ones, efforts have been made to provide better financial services for high-quality economic growth, to strengthen financial support to the advanced manufacturing industry, strategic emerging industries and low-carbon circular economies, and to promote industrial transformation and upgrading. By the end of last year, loans provided to the manufacturing sector by banks increased by 780 billion yuan compared to the beginning of the year, and the green credit balance of 21 major banks exceeded 10 trillion yuan. In terms of promoting financial services for technology enterprises, over 750 technological branches of banks and specialized technological financial institutions have been set up throughout the country. The outstanding balance of bank loans to technology enterprises exceeded 4.1 trillion yuan, an increase of 24% compared to the beginning of 2019. In addition, strong financial support has been given to the coordinated development between regions and construction of major projects. By the end of 2019, the outstanding balance of bank loans to infrastructure construction reached 29.2 trillion yuan, an increase of 2.8 trillion yuan compared to the beginning of the year. We have also promoted the establishment and launch of various investment plans by insurance agencies. At present, they have supported the Yangtze River Economic Belt and Beijing-Tianjin-Hebei Coordinated Development Project with more than 600 billion yuan and 250 billion yuan in capital respectively.

Second, efforts have been made to effectively alleviate the problems of difficult and expensive financing. We have continuously standardized the fees charged by financial institutions and encouraged banks to provide separate credit lines for inclusive finance. We have also implemented preferential internal pricing for internal capital transfers, increased support for renewals, and increased the proportion of credit loans. As we all know and as has been widely reported last year, by the end of 2019, the outstanding balance of bank loans to small and micro enterprises was 11.6 trillion yuan, marking a year-on-year increase of 25%. The number of enterprises with credit balances was more than 21 million, an increase of 3.8 million compared to the beginning of the year; and the average interest rate of loans granted for first time to small and micro enterprises decreased by 0.64 percentage point compared to the 2018 average. 

Third, efforts have been made to continuously strengthen financial services for private enterprises. Adhering to the "two unwaveringly" requirements; which are to unswervingly consolidate and develop the public sector, and unswervingly encourage, support, and guide the development of the non-public sector; banks and insurance agencies are required to be non-discriminatory and equal in their treatment of the different economic sectors. By establishing a mechanism that ensures no one who has fulfilled their duties is held liable, strengthening internal performance assessments and innovating on products and services, we have driven banks to establish a long-term mechanism under which banks dare to, are willing to and able to grant loans to private enterprises. At the same time, by setting up creditor committees and implementing debt-to-equity swaps, we have helped some enterprises overcome their difficulties. At present, there are about 19,000 creditor committees nationwide and 14,000 of them concerning privately-owned enterprises. 

Fourth, efforts have been made to support the development of public programs. We have conducted home service financial innovations in ten pilot cities including Beijing, Tianjin and Shanghai to help develop community services such as elderly care, housekeeping and childcare. We have also continued to develop commercial pension insurance and commercial health insurance. From January to September of 2019, the pension annuity insurance and commercial health insurance premiums were 41.5 billion yuan and 567.7 billion yuan respectively. We have also cooperated with the Ministry of Agriculture and Rural Affairs to strengthen support to hog production and deepened the pilot program that uses insurance capital to support small agricultural enterprises. From January to November of 2019, agricultural insurance provided 3.5 trillion yuan worth of risk guarantees for 178 million insured agricultural households and paid 52.5 billion yuan in indemnities to 44 million agricultural households. 

As our next step, the China Banking and Insurance Regulatory Commission will, based on the arrangements of the Central Economic Work Conference, focus on developing policies concerning the real economy. These policies will aim to help provide effective financial services, solve the financing problems of private enterprises and small and micro enterprises, and improve the financial services in the manufacturing and social service sectors so as to improve the quality and efficiency of financial services for the real economy. Thank you. 

Market News International:

I have two questions. We recently learned that the CBIRC mentioned at a meeting that it will cooperate with local governments to resolve hidden debt risks. How will this be implemented? Another question is that since the second half of last year, commercial banks have increased loans to help local governments refinance their debts. Is there any relevant information and data to share in this area? Thank you.

Xiao Yuanqi:

Thanks for your question. Your question is one of the topics mentioned in this work meeting. Regarding the hidden debts of local governments, the CBIRC mainly guides banks and insurers to deal with them in accordance with existing regulations and policies. On the one hand, we must "open the door" and encourage these institutions to actively participate in some projects with good performance and cash flow. We encourage the issuance of local government bonds, which can be sold in commercial banks so that local companies and individuals can purchase them at bank counters. For the special bonds issued by local governments, banks and insurance institutions are the main investors. On the other hand, we must prevent relevant risks. Especially for hidden debts that violate regulations, banks and insurers must follow their own risk management process to strictly control risks in accordance with existing regulations and policies. The data you just mentioned will be provided to you after the meeting. Thank you.

China News Service:

As financial products have now entered the lives of millions of families, all sectors of society are paying more and more attention to the protection of the rights and interests of financial consumers. We would like to know what measures the CBIRC had taken to protect the rights and interests of these consumers for the past year? In particular, what achievements have been made in protecting consumers from the infringement of their rights and interests?

Huang Hong:

This question is for Mr. Ma to answer.

Ma Xueping:

The protection of consumers is indeed one of the priorities of the regulator. In 2019, the CBIRC focused on the main consumer pain points and the challenging issues. It adopted special measures, on-site inspections, interview mechanisms and public disclosure to punish and rectify the behavior of banks and insurers that infringed on consumers' rights and interests.

First, we opened channels for complaints and placed great importance on the demands of the public. In the past year, the regulator directly received 31,300 complaint cases related to the banking and insurance industries, which marked a year-on-year increase of 69%. We have carefully dealt with every complaint and replied to consumers promptly.

Second, we conducted targeted inspections and interviews. Last year, we carried on-site inspections that were closely related to consumer rights, such as fees, the credit and consignment business, financial services, sales compliance, and the authenticity of customer information. Such supervision was carried out during the whole process of bank and insurance operations. At the same time, in accordance with the principles of early warning, early identification, and early disposal, we made inquiries with 63 institutions to discuss the hidden risks we uncovered during our inspections. We also urged financial groups to establish and improve their consumer protection systems and mechanisms, and enhance their consumer protection management levels.

Third, we increased the level of public disclosure. In response to social concerns, and to give full play to the role of public supervision, we released reports on consumer complaints every quarter, and urged institutions to strengthen control over their businesses and take responsibility for handling complaints. We even published five cases of infringement to deter bad actors in the industry. We also carried out risk warnings based on the cases, and improved public awareness on risk prevention and self-protection.

Fourth, we cracked down on infringements on the rights and interests of consumers. Last year we launched a three-month-long campaign to focus on the key areas where consumer rights had been infringed on over the years. By the end of last year, all banks and insurance institutions had completed their self-inspections. We carried out spot checks on 2,096 banking and insurance institutions, including more than 50,000 branches. We urged these institutions to revise 2,520 items, and some relevant personnel were also held accountable. 

In general, last year, through the rectification of the chaos that infringed on consumers' rights and interests, special campaigns to tackle the problem of ignoring the interests of the public , on-site inspections and supervision on how consumers' complaints were addressed, the China Banking and Insurance Regulatory Commission urged banks and insurance institutions to check and pay consumers 4.09 billion yuan in refund and compensation. This has helped improve the people's sense of gain.

I will report on this year's work plan. This year, we will continue to strengthen the supervision of consumer protection as a continuation of our work last year. First, we will establish rules and regulations and systems to urge institutions to fulfill their main responsibilities and to improve the consumer rights protection system and mechanism. Second, we will introduce a consumer protection supervision evaluation system, which is an innovative approach to supervision, to carry out the multi-dimensional evaluation of consumer protection work by the institutions. Third, we will promote the development of a multi-resolution mechanism for financial disputes, and provide people with multiple and efficient channels for resolving complaints and disputes. Fourth, we will continue to promote the follow-up rectification of problems found in the rectification of irregularities concerning consumer protection, and urge all institutions to analyze the existing problems, find the root causes of the problems, tackle areas of weaknesses, improve the governance system, and establish a long-term effective mechanism, so as to ensure that illegal behaviors which violate consumer rights and interests are curbed.

Finally, I would like to take this opportunity to talk about the issues related to financial consumer education. As a regulatory authority, we have helped consumers acquire financial knowledge and improve their financial literacy through various financial knowledge education activities. At the same time, we also hope that the financial consumers can actively learn and acquire financial knowledge, learn to examine and evaluate their own ability to bear risks, establish a sense of risk, and cultivate their habits around rational consumption and investment. Thank you.

Hong Kong Economic Herald:

Mr. Zhu just mentioned increasing support for private, small and micro businesses in renewing loans, which is also the "last mile" in solving the financing difficulties faced by small and micro businesses. What measures have been taken to help private, small and micro businesses get first-time loans? This is also the "first mile" in helping them tackle financing difficulties.

Zhu Shumin:

The first-time loan is a bit more demanding than the renewal loan. In this area, all banks attach great importance to the first-time loan business. Some media outlets may have noticed that, under the guidance of the China Banking and Insurance Regulatory Commission, the China Banking Association has advocated the nation's banks and financial institutions to launch a special financing campaign --"Hundreds of banks go into tens of thousands of enterprises". This was fully implemented nationwide last November. At the early stage, we had 5 provinces and municipalities carry out pilot trials and they achieved very good results. Next, the China Banking and Insurance Regulatory Commission will guide the China Banking Association to advocate the improvement of banking services across the country. Based on the basic accounts opened by small and micro enterprises, a one-to-one docking mechanism will be established to allow banks to change their operations from that of being a "zuo shang" ("sedentary merchant") to "xing shang" ("itinerant trader") and conduct in-depth studies on the financing needs of small and micro enterprises. Voluntary docking on the basis of the full exchange of information between banks and enterprises will help realize a positive interaction between banks and enterprises. Preliminary statistics show that nearly 8 million small and micro enterprises operating normally and paying taxes have been included in the financing campaign. This data is mainly given to us by the tax bureaus. We will continue to look at enterprises' financing situation according to their tax records. If there are tax records but no bank loans, we will provide relevant information to the bank where the company has opened a basic account, and this bank will go to the enterprise to learn about its financing needs and offer services.. In fact, this is what you just mentioned -- the release of the first loan. At present, the majority of banks are taking the initiative to go to the enterprises and provide their services and carry out docking. This work is expected to be completed by the end of April this year. The campaign is carried out across the whole country, and is a very popular project that is welcomed both by the government as well as enterprises.

Yicai TV:

The new rules on asset management have been implemented for almost two years. How is the current implementation of banks' stock assets? The transition period is set at the end of this year. I want to know how we can ensure that banks can smoothly pass through this transition period before this date. Will the restrictions be relaxed if banks cannot reach what is expected of them in time? Or will you relax other criteria in the aspect of implementation?

Xiao Yuanqi:

All aspects of the transition period of the new rules on asset management are of great concern. On the whole, after the introduction of the new rules on asset management and the subsequent measures issued by the China Banking and Insurance Regulatory Commission on relevant bank wealth management subsidiaries and bank net capital management, all the banks have progressed smoothly and in an orderly manner. The stock asset management business is also being regulated in accordance with the new asset management rules and related regulations and requirements. This year is a very important year for the transition of the new asset management regulations. We require banking institutions to conscientiously implement the new asset management regulations and related financial management rules, seriously defuse the risks of stock assets, and successfully fulfill related tasks during the transition period.

On the other hand, some banking institutions have a relatively large stock inventory of asset management products. Before the introduction of the new asset management rules, the inventory was relatively large. If you want them to fully resolve it during the transition period, certain individual institutions will still have some difficulties. But we require them to formulate rectification plans, including medium and long-term solutions. And the requirement is that, in principle, they must resolve this during the transition period. For some institutions in particular with large stocks and which face difficulties during the transition period, we will also study related arrangements to ensure that asset management products, especially bank wealth management products, can be regulated in a smooth and orderly fashion in the future. Some flexible arrangements will also be given to certain individual institutions as deemed appropriate. Thank you.

Bauhinia Magazine:

Earlier Mr. Zhu spoke about the difficulties and high costs of financing faced by enterprises. 

Could you please give some details about the achievements made by the China Banking and Insurance Regulatory Commission in serving the real economy and alleviating the difficulties faced by enterprises in accessing affordable financing? What substantial results have been achieved and what measures have been taken?

Zhu Shumin:

We have taken many measures, and this year we will start by focusing on improving regulations. We are drawing up the measures on the supervision, administration and appraisal of commercial banks' financial services for small and micro businesses. We will develop an evaluation method and index system which centers on credit services and covers the overall business processes of financial services provided by commercial banks for small and micro businesses. The measures will be released in the near future. The regulation will incorporate many of the effective measures we have adopted in the early stages, including the renewal of loans and first-time loans that people are concerned about, as well as some work requirements for commercial banks. There will be more clarity when the measures are unveiled. I'll stop here. Thank you. 

CNR:

The Spring Festival is coming and the issue of banks attracting deposits has become a hot topic again. Small and medium-sized banks may face difficulties in winning over savers. My question is what measures are the China Banking and Insurance Regulatory Commission taking to deal with this. I noticed that the auto insurance was talked about specifically at the recent 2020 national banking and insurance working conference. Why was the issue of the marketization of auto insurance ratio raised, but not of health insurance and commercial pension insurance? Are there any specific measures to help develop and improve the "third pillar" of China's pension insurance system? Thanks.

Huang Hong:

You asked three questions. I will give the floor to Mr. Xiao for the question about banks' attracting deposits. And I will answer the other two.

Xiao Yuanqi:

The race to attract deposits and win over savers is not as serious as in the past. Because we have regulations and require banks, especially small and medium-sized banks, to enhance their ability to manage assets and liabilities, there has been much letup in such race these years. You mentioned that there would be a "war to attract deposits," which reminds us to study our measures taken during the holiday period. On the one hand, we must ensure that there is enough capital in the market to meet the peoples' demand during the holiday. At the same time, banks, no matter big or small, should have sufficient and reasonable liquidity because of the demands during the holiday. According to the regulatory data, small and medium-sized banks' indices of liquidity are good, and indices such as liquidity coverage ratio are well above the regulatory requirements. However, we will pay more attention during this period. In the matter of attracting deposits, we have requirements and regulations. Banks should not do anything in violation of these provisions and a red line must not be crossed in an effort to win over savers. There are stiff penalties for offenders who fail to maintain the normal order of the deposit market.  

Huang Hong:

Let me answer the latter two questions. We are all familiar with motor vehicle insurance or auto insurance for short. Motor vehicle insurance has long been a main type of insurance for property insurance companies. In terms of the actual figures last year, the incomes from auto insurance premiums reached 818.9 billion RMB, accounting for 63% of the total premium of property insurance. In other words, 63% of the premiums of property insurance companies came from auto insurance. Auto insurance plays a crucial role in people's daily travel, and it is a very important issue for millions. In recent years, the CBIRC has strengthened its supervision of auto insurance. Although our supervision is relatively stricter than before, the long-standing deep-seated problems have not been fundamentally resolved. The media often reports that the problems of high prices, high fees, extensive management, disorderly competition, and distortion of data still exist. Hence, accelerating auto insurance reform is an urgent task for the CBIRC. Therefore, in 2020, we are placing the regulatory work concerning auto insurance system on the agenda. Auto insurance system has undergone some reforms over the years, but I think they have not been enough. The reforms that really touch on the fundamental interests and that target deep-seated issues, have in truth not yet begun. In 2013, we carried out a thorough reform of our health and pension insurance systems, that is, the reform of the life insurance rate formation mechanism. The auto insurance system reform should also be market-oriented, that is, it should adhere to the direction of market-oriented reform.

In general, to undertake the next steps of reform, we need to first understand the overall requirements for reform. The basic principles of the reforms should be to keep the auto insurance system market-oriented, supervised, and guided. We should adjust the total volume, optimize its structure, expand the scope of guarantees, improve the efficiency, streamline its administration and coordinate its promotion with other reforms. The second issue is to pay attention to the main content of the reform. We need to coordinate and adopt a combination of reforms in the compulsory insurance for vehicle traffic accident liability and commercial insurance, a combination of terms and exchange rate reforms, a combination of guarantee and service reforms, as well as a combination of market and regulatory reforms. The third is to ensure the pace of reform. At present, we are formulating a specific plan for the comprehensive reform of auto insurance system, and this plan is being widely consulted. The CBIRC will formally implement comprehensive auto insurance system reforms at an appropriate time this year. This is the answer to your second question.

The third question you raised is about the reform and development of the third pillar of the pension system, the individual commercial pension insurance. In the speech I made at the FORTUNE Global Forum on Saturday, I spoke about opinions and suggestions for the next step of reform of the third pillar. To sum up:

First, we must accelerate the top-level design of the third pillar reform to incorporate it into major national reforms, at the same time, taking the development of the third pillar as a key national strategy and incorporate it in the "14th Five-Year Plan" .

Second, we must strengthen policy support. In recent years, some policies have been introduced on the construction of the third pillar. For example, pilot programs for individual tax-deferred pension insurance schemes that the media has concerned about have officially been launched in Fujian, Shanghai and Suzhou.

Third, we must increase our efforts to promote the third pillar, especially individual pensions. We have not done enough in this area in the past.

Fourth, we must establish an individual pension system. On the first working day of 2020, I attended a policy briefing here, during which I gave some opinions on the development of commercial pension insurance. I would like to emphasize again today that the development of the third pillar, the establishment of various types of pensions, is both an opportunity and a major challenge for commercial insurance institutions. The liability cycle of personal pensions is very long, it has to cross multiple economic cycles and undergo a series of tests such as longevity and interest rate risks. Therefore, the capacity building of commercial insurance institutions is the main task currently facing the CBIRC, which includes investment capacity, actuarial pricing and professional team-building ability. These are four aspects of work related to the third pillar of the pension system.

21st Century Business Herald:

Among the nine key areas that the CBIRC will work on to guard against and defuse financial risks mentioned by Mr. Huang earlier, the first is to properly deal with high-risk financial institutions. How do regulatory bodies view the risks in small and medium-sized banks as well as insurance institutions? What are the measures taken in this regard? Also, Mr. Huang mentioned that strict measures will be undertaken to investigate and deal with financial groups that have been established in violation of prevailing laws and regulations. How do the authorities identify these financial groups and what are the measures that are in place to deal with them?

Huang Hong:

Thank you for your two questions. Let's give the floor to Mr. Xiao.

Xiao Yuanqi:

Thank you. Establishing risk monitoring for the banking and insurance sectors is one of the main responsibilities of the CBIRC. Mr. Huang, Mr. Zhu and Mr. Ma are all experts in this field.

Regarding your first question on how regulatory bodies view risks in high-risk financial institutions, generally speaking, risks in banks and insurance institutions are manageable on the whole. The indicators, either on these institutions' performance, or of the risk regulation, have remained within an appropriate range. According to a series of data points we released recently, the operations, performance, as well as core indicators of risk regulation toward commercial banks and insurance institutions have stayed promising. Nevertheless, there are indeed some small and medium-sized institutions facing comparatively high risks, and some of these risks are emerging due to various reasons. In regard to these problems, the CBIRC has remained vigilant and investigated the institutions concerned, managing them through a list system and defusing the risks accordingly. In many cases, this has been achieved by conventional means. For example, 2 trillion yuan of non-performing assets were disposed of last year, which, in essence, resolved the credit risks of the related institutions. Risks related to non-performing assets, either existing or newly-added ones, have all been defused through proper disposal and management. In addition, these institutions are also required to conduct strict screening management and risk control to newly-added loans. There are also many other existing conventional regulatory measures to defuse the risks. 

In addition to conventional methods, some proactive measures need to be taken toward the high-risk small and medium-sized financial institutions. For example, as Mr. Huang mentioned earlier, last year, the CBIRC, together with the People's Bank of China, took over Baoshang Bank Co., Ltd in accordance with the law. It also handled risks, carried out reforms and the reorganization of HengFeng Bank Co., Ltd and Jinzhou Bank Co., Ltd. These are all major moves in this regard. For other institutions, we also managed non-performing assets, introduced new strategic investors, and carried out mergers and reorganizations based on market principles and the rule of law. As for the risks in small and medium-sized institutions, we will also adopt comprehensive methods to resolve them this year, but different measures will be taken according to the specific circumstances of each institution.

The second problem relates to illicit financial groups. Since the start of 2017, we've adopted various measures to crackdown on illicit financial groups so as to further regulate financial markets and prevent risks, and this work is still ongoing. These illicit agencies have held shares in financial institutions through various illegal measures, such as circulating capital, making false capital contributions and becoming nominal shareholders. After joining the financial institutions, these agencies have been found to have conducted illegal actions, such as colluding for the transmission of illicit profits, and engaging in affiliated transactions, which have seriously interfered in the regular business activities of financial institutions. All such behaviors should be regulated and cracked down on. The construction of an institutionalized system will be our priority in the future, for example, we are working on measures to tighten the review of shareholders' eligibility and optimize shareholding management so that those professional financial agencies with outstanding expertise and a long-term credit record both at home and abroad can be introduced as major shareholders. We will also map out some medium- and long-term plans for the governance and development of companies. These are the measures we are going to adopt during the 2020 working conference to address the problem of illicit financial groups. Thank you. 

Et Net News Agency:

Currently, the insurance products in Hong Kong and Macao are not available on the Chinese mainland, and the channels for investors from the Chinese mainland to directly invest in overseas financial products are relatively limited. I would like to ask how the connectivity of financial and insurance products within the Guangdong-Hong Kong-Macau Greater Bay Area can be improved upon? Moreover, the pilot mainland personal account opening service has been introduced in Hong Kong. Will this pilot eventually be fully launched?

Huang Hong:

You've raised two questions. One of them is about insurance, and the other is about the banking issue. I would like to answer the former. The issues regarding the development of the Guangdong-Hong Kong-Macau Greater Bay Area have been explained at the previous press briefing, however, I'm willing to provide some further information about it. The construction of the Greater Bay Area is a national strategy that is designed, arranged and promoted by General Secretary Xi Jinping. It is not only a new measure to break new ground in pursuing the opening up on all fronts in a new era, but also a further step in taking forward the practice of "one country, two systems." The China Banking and Insurance Regulatory Commission will take various measures to support the overall planning of the construction of the Greater Bay Area in the following aspects: 

First, we strengthened the leadership in our organizational work and built a multi-party response mechanism. The China Banking and Insurance Regulatory Commission (CBIRC) set up the working group of the Guangdong-Hong Kong-Macao Greater Bay Area. Headed by the CBIRC's leader, the group has formulated meeting and working mechanisms in this area.

Second, we established a joint mechanism to hedge against financial risks in Guangdong, Hong Kong and Macao. In 2018, a joint working conference of Guangdong-Hong Kong-Macao banking supervision was held to set up a supervision and contact mechanism for the area, where working-level meetings are held regularly every year.

Third, we supported cooperation among Guangdong-Hong Kong-Macao insurance institutions to develop cross-border auto and medical insurance products.

Fourth, we supported the Nansha District of Guangzhou to develop featured financial services including shipping finance, technology finance, and aircraft and ship charters. 

Fifth, we expanded the financial opening-up to Hong Kong and Macao. We implemented the policy decisions and plans of the CPC Central Committee and the State Council, and also participated in negotiations of several agreements on establishing closer trading ties between the mainland and Hong Kong as well as between the mainland and Macao. We also promoted the implementation of opening-up measures, including facilitating foreign investments, relaxing requirements for foreign investments to establish financial institutions and expanding the business scope of foreign financial institutions.

More recently, we are working on regulations to allow Hong Kong insurance institutions to establish after-sales service institutions in the Guangdong-Hong Kong-Macao Greater Bay Area. On the whole, we have strengthened our policy guidance in multiple aspects to promote the development of the area and to facilitate Hong Kong insurance institutions' operations in the mainland.

Xiao Yuanqi:

Mr. Huang made a comprehensive presentation on the financial cooperation and development in the Guangdong-Hong Kong-Macao Greater Bay Area. To sum up, we strongly support and actively promote all measures which benefit financial cooperation and consumer convenience in the Guangdong-Hong Kong-Macao Greater Bay Area.  

Xi Yanchun: 

Thanks to the speakers and thanks to the journalists. Today's briefing is hereby concluded.

   

.Read in Chinese

Speakers:

Shohrat Zakir, deputy secretary of the Xinjiang Uygur Autonomous Regional Committee of the Communist Party of China (CPC), chairman of the Xinjiang regional government

Xu Hairong, member of the Standing Committee of the CPC Xinjiang Uygur Autonomous Regional Committee, secretary of the CPC Urumqi Municipal Committee

Erkin Tuniyaz, member of the Standing Committee of the CPC Xinjiang Uygur Autonomous Regional Committee, vice chairman of the Xinjiang regional government

Parhat Rozi, deputy secretary of the CPC Kashgar Prefectural Committee, head of Kashgar prefectural government

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

Dec. 9, 2019

Hu Kaihong:

Ladies and gentlemen, good morning. Welcome to this press conference. Today, we're delighted have with us Mr. Shohrat Zakir, deputy secretary of the Xinjiang Uygur Autonomous Regional Committee of the Communist Party of China (CPC) and chairman of the Xinjiang regional government; Mr. Xu Hairong, member of the Standing Committee of the CPC Xinjiang Uygur Autonomous Regional Committee and secretary of the CPC Urumqi Municipal Committee; Mr. Erkin Tuniyaz, member of the Standing Committee of the CPC Xinjiang Uygur Autonomous Regional Committee and vice chairman of the Xinjiang regional government; and Mr. Parhat Rozi, deputy secretary of the CPC Kashgar Prefectural Committee and head of Kashgar prefectural government. They will introduce various aspects related to the stability and development of Xinjiang Uygur autonomous region, and answer some of your questions. 

Now, I'll give the floor to Mr. Shohrat Zakir.

Shohrat Zakir:

Thank you. Ladies and gentlemen, friends from the media, good morning. It's a great pleasure for me to meet you here. You have given prolonged strong support to Xinjiang's development. On behalf of the regional government, I'd like to offer sincere gratitude to you all.

Xinjiang is a bright pearl in western China, a major East-West connecting point under the Belt and Road Initiative (BRI). The Central Committee of CPC attaches great importance to the work in Xinjiang, and has developed a series of favorable policies to support its economic and social development. Annual transfer payments from central finance to Xinjiang reach nearly 400 billion yuan. Meanwhile, 19 provinces and municipalities provide paired aid with an annual investment of more than 15 billion yuan. Under the strong leadership of the CPC Central Committee, the officials and people of all ethnic groups are united and work together to achieve common prosperity and development, and jointly contribute to Xinjiang's social stability, economic growth, ethnic solidarity, religious harmony, livelihood improvement and the peaceful and happy life.

However, the peace and stability in Xinjiang did not come about easily. Over a past period of time, it has faced challenges posed by frequent violent terrorist activities, severely damaging people's right to subsistence and development. We have upheld socialist rule of law, giving equal importance to cracking down violent terrorist crimes in accordance with the law and addressing problems at the source. Through improving people's wellbeing, enhancing legal publicity and education, and lawfully establishing vocational education and training centers, Xinjiang has been intensifying efforts to fight against terrorism and extremism. All these important aspects have laid a solid foundation for realizing Xinjiang's social stability and long-term security. There have been no violent terrorist cases and incidents for three consecutive years in Xinjiang. The spread of extremism has been effectively contained, public security has notably improved, and people of all ethnic groups are able to live and work in peace with a much stronger sense of gain, happiness and security.

We stay committed to the strategic goal of pursuing high-quality economic development, upholding an innovative, coordinated, green, open and shared development philosophy, and seeking progress while maintaining stability. Thus, Xinjiang's economy has seen sustained and healthy growth. Since the 18th National Congress of CPC, Xinjiang's GDP has maintained an annual increase of 8.5%. Urban and rural residents' per capita disposable income is rising by 8.4% and 8.2% respectively per annum. In 2018, Xinjiang received 150 million tourists from home and abroad, up 40.1% year-on-year. In the first 10 months this year, the region has attracted more than 200 million tourists, up 42.6% from last year.

We have always taken the people's aspiration for a better life as the goal of our work, and resolutely delivered outcomes of development to improving the people's life, benefiting various localities and enhancing ethnic solidarity. Over 70% of general public budgetary expenditure is used in ensuring and improving people's livelihood, so as to deliver more achievements of development to all ethnic groups in a fairer manner. We insist that employment must come first, and have also prioritized education. We are committed to improving people's health, and have been working hard to improve the social security system. We adhere to the basic strategy of precise poverty alleviation, pooling all resources at our disposal to win the battle against poverty. Since 2014, a total of 2,385,300 people have been lifted out of poverty, and the poverty incidence rate has dropped to 6.51% this year from 22.48% in 2014.

We unswervingly implement the system of regional ethnic autonomy, observe the Law of People's Republic of China on Regional Ethnic Autonomy, protect people's rights of all ethnic groups participating as equals in administering State affairs as well as independently administering their local affairs within the autonomous administrative divisions where ethnic autonomy is exercised. In Xinjiang, chairpersons of the standing committee of the people's congress of the autonomous region, chairpersons of the autonomous regional government, and chairpersons of the regional committee of the Chinese People's Political Consultative Conference are all citizens from ethnic minorities; the heads of autonomous prefectures and counties are all citizens from the ethnic groups exercising regional autonomy. Most of the prefectures' (prefectural cities) administrative chiefs are all officials of ethnic minorities; in general, either the chief Party or government post at level of counties and equivalent areas is held by an ethnic minority official. Ethnic minorities account for 62.1% of the deputies of the 13th Xinjiang People's Congress, and 46.7% of the members of the 13th CCPCC of Xinjiang Uygur Autonomous Region. We protect and carry forward the fine traditional cultures of all ethnic groups according to law, and safeguard the rights of various ethnic groups to use and develop their own spoken and written languages according to law. Spoken and written languages of ethnic minorities are extensively used in such areas as the judicature, administration, education, press and publishing, radio, film and television, the Internet and in daily life. We are committed to upholding ethnic unity, making efforts to promote ethnic solidarity promotion activities. People of all ethnic groups in Xinjiang are as united as pomegranate seeds holding together tightly.

We fully act on the policy that "Chinese citizens enjoy freedom of religious belief", which is stipulated in the Constitution, ensuring that religious believers and non-believers have full equality in enjoying political, economic and cultural rights. We administer our religious affairs according to law and uphold the principle of independence and self-management of our religious affairs and guide religions to adapt to a Chinese context and to the socialist society. We make great efforts to improve the conditions of religious venues and activities. We intensify the support to and cultivation of religious figures as well as continuously serve the normal needs of religious believers.

Recently, the U.S. House of Representative passed the so-called "Uygur Human Rights Policy Act of 2019". This bill seriously violated international law and basic norms governing international relations, and grossly interferes in China's internal affairs. The measures adopted in Xinjiang in regard to counter-terrorism and de-radicalization are, by principle, no different from those adopted in many other countries around the world, including the U.S. The American side should discard its ideological prejudice, and stop adopting a double standard on counter-terrorism and de-radicalization; otherwise, they are putting themselves in a position opposed to 1.4 billion Chinese people, to the international community, as well as to the justice and conscience of humanity. No force can stop Xinjiang's progress of stable and prosperous development, as well as its people of all ethnic groups from working together and forging ahead. 

That's all for my brief introduction. Thank you.

Hu Kaihong:

Thanks to Mr. Shohrat Zakir for his introduction. Now, the floor is open for questions. Please identify your media outlet before raising your questions. 

CCTV:

Mr. Shohrat Zakir just mentioned that Xinjiang has seen no violent terrorist attack for three consecutive years. So, my question is what kind of economic benefits have been brought about by this stable situation?

Shohrat Zakir:

Thanks for your question. I would like to invite Erkin Tuniyaz, vice chairman of the Xinjiang regional government, to answer it.

Erkin Tuniyaz: 

Thanks for your question. It is clear that any country in the world seeking development needs a stable international and domestic environment. Stability is the prerequisite and guarantee for development, and development is the foundation and support for stability. Cadres and people of all ethnic groups in Xinjiang are deeply aware that, in the past, due to the frequent violent terrorist activities and spread of religious extremist ideologies , the region was in a state of chaos and could not achieve any development, and was even on the brink of losing the progress previously achieved. Now, the social harmony and stability have created opportunities for economic development, constantly delivering benefits. In 2017, Xinjiang's regional GDP reached 1.09 trillion yuan, the first time it went over one trillion yuan, with a year-on-year increase of 7.6%. Urban and rural residents' per capita disposable income annually saw a rise of 8.1% and 8.5% respectively, to 30,775 yuan and 11,045 yuan. In 2018, its GDP reached 1.22 trillion yuan, a year-on-year increase of 6.1%. Urban and rural residents' per capita disposable income rose by 6.5% and 8.4% respectively, to 32,764 yuan and 11,975 yuan. In the first three quarters of 2019, the GDP increased by 6.1% year-on-year, while urban and rural residents' per capita disposable income rose by 5.6% and 9.5% respectively. In regard to tourism in Xinjiang, recognized as the "barometer" to measure the level of stable development, there was a sharp increase. In 2017, the number of tourist arrivals in Xinjiang exceeded 100 million for the first time to reach 107 million, and tourism revenue stood at 182.2 billion yuan, both up by over 30% year-on-year. In 2018, the region received 150 million tourists and tourism revenue reached 257.97 billion yuan, both up by over 40% year- on-year. In the first 10 months this year, the figure surpassed 200 million, producing revenue of more than 300 billion yuan, both up by over 40% year-on-year. People of all ethnic groups in Xinjiang have learned that "stability is a blessing while unrest is a scourge", and they will spare no effort in maintaining the sustained stability of the region.. No forces from home and abroad have the right and will be able to undermine the confidence and resolve of people in Xinjiang. Thanks.

Economic Daily:

Mr. Chairman, you just mentioned that over 70% of Xinjiang's general public budgetary expenditure is being used in ensuring and improving the people's livelihood. My question is what innovative measures have Xinjiang taken in terms of improving people's livelihood, such as in affordable education and medical care. Thank you.

Shohrat Zakir:

Thank you. Xinjiang Uygur autonomous region has been espousing the people-centered development philosophy, delivering the outcomes of development to improving people's lives, benefiting various localities and enhancing ethnic solidarity. We continue to allocate 70% of our general public budgetary expenditure to ensure and improve people's livelihood, making continuous efforts in nine people-benefiting projects with focus on employment, education and medical care. Thus, people of all ethnic groups have enjoyed a much stronger sense of gain, happiness and security.

On employment, we have been improving services for college graduates and urban residents, and creating job opportunities for rural surplus labor, especially for those from deeply impoverished families. We also encourage people to start businesses and create jobs, and accelerate the implementation of the employment plan for surplus labor in the four prefectures in southern Xinjiang. We have ensured that at least one person from a family with available labor gets employed.

We also prioritize education. We have increased subsidies to students from impoverished families and ensured that all school-age youngsters have access to nine years of compulsory education. In the four prefectures in southern Xinjiang, 15-year free education is provided all the way from kindergarten to senior middle school. We have endeavored to ensure that education is affordable and quality teaching resources are accessible to every child.

On medical care, an annual free medical examination is available to all urban and rural residents, who are all under the coverage of accident insurance. We are now providing medical treatment for 133,000 people with tuberculosis, of whom 56,900 have been cured. Urban employees are fully insured against serious illnesses.

On social security, we are now implementing full coverage of social insurance and have been constantly improving the basic old-age, medical, unemployment, work-related injury and maternity insurance system. The work-related injury insurance fund is now managed by the autonomous region and we're now speeding up the building of a unified social insurance public service platform to ensure cross-region real time reimbursement and one-stop reimbursement for basic medical insurance and insurance for serious illnesses.

On housing, we have built 212,700 government-subsidized housing units in rural areas and renovated 154,900 units in run-down urban areas this year, all meeting or beating the annual target.

These are some of the specific measures we have taken in ensuring and improving people's livelihood. Thank you.

China Arab TV:

What's your views to the "Uyghur Human Rights Policy Act of 2019" passed by the House of Representatives recently? Thanks.

Shohrat Zakir:

Thank you for your question. The so called "Uyghur Human Rights Policy Act of 2019" passed by the United States ignores and distorts the true picture in Xinjiang. It has neglected social stability and harmony, economic prosperity and decent living standards and the working environment for all ethnic groups residing there. It distorts, smears and slanders the human rights condition and the Chinese government's policies in Xinjiang, interfering in China's internal affairs in bold, rude and brutal ways severely contravening international law and the basic norms governing international relations. We believe this is an absolute hegemonic act that has aroused an immense reprimand and strong opposition of all ethnic groups in the Xinjiang Uygur autonomous region. 

Over the past few years, Xinjiang was subject to the hazards of terrorism, religious extremism and secessionism. It is estimated that violence and terrorist attacks that claimed a great many innocent lives and caused colossal loss of fortune occurred thousands of times between 1990 and 2016. I would like to take this opportunity to show you a short video about it.

From this video, in particular, I believe you can gain a direct impression of the serious consequences of the cruel and violent terrorist crimes in Xinjiang. We, the government of Xinjiang Uygur autonomous region, have been resolute in cracking down on all kinds of such crimes in regard to violence and terrorism while addressing their fundamental causes. We have countered terrorism and eradicated extremism in a lawful manner, to ensure, to the greatest possible extent, the fundamental rights, including the right to life, to subsistence and to development, for local people in all ethnic groups. So far, not a single case of violence or a terrorist attack has occurred in the past three years. Social stability has been maintained and local people have been able to live and work in a safe and enjoyable environment. The United States, which was impassive when the lives of people from all ethnic groups in Xinjiang were threatened by terrorism, is now agitated at the sound development and peaceful living environment in the region. It smears and attacks the autonomous region, especially in regard to this act you mentioned, to challenge the solidarity of different ethnic groups in China and sabotage Xinjiang's prosperity and stability in an obvious attempt to contain China's development.

Therefore, I would like to take this opportunity to reiterate that, in regard to Xinjiang affairs, it is the people of all ethnic groups who live there, who have the final say. Any attempts to undermine the stability in Xinjiang are doomed to fail. The purposeful rumors, insults and falsified accusations will never put a brake on the actual progress being made on human rights in Xinjiang. Neither will they impede the unity of all ethnic groups in Xinjiang where development and prosperity are achieving unstoppable growth despite such interference. Thank you.

Macao Daily:

What's the legal basis for the vocational education and training center in Xinjiang? What achievements have been made? Thank you.

Shohrat Zakir:

This question will be answered by Xu Hairong, a member of the Standing Committee of the CPC Xinjiang Uygur Autonomous Regional Committee, and secretary of the CPC Urumqi Municipal Committee.

Xu Hairong:

Xinjiang is governed in accordance with the law, and we are actively carrying out this work based on legal thinking and legal methods. The legal basis for establishing vocational education and training centers are the Counter-Terrorism Law of the PRC, the Measures of the Xinjiang Uygur Autonomous Region on Implementing the Counter-terrorism Law of the PRC, and the Regulations of the Xinjiang Uygur Autonomous Region on Deradicalization. According to these provisions, we have adopted some of school regulations to improve management of the vocational education and training centers. We have allocated teaching resources, opened courses such as standard spoken and written Chinese, legal knowledge and vocational skills, as well as deradicalization courses, and established education systems, as we continue to protect the lawful rights of the trainees. 

The training program has achieved good results as we spared no efforts in saving those who committed petty crimes or minor offenses while involved in terrorist and extremist activities, eradicating the soil and conditions that breed terrorism and religious extremism, while protecting the citizens' basic rights from the harm of terrorism and extremism.

I'd like to share with you some stories. The first one is about Dilixiati. She is a student who graduated from a vocational education and training center. She used to run an agritainment facility and earned a good income. However, after being influenced by religious groups, she believed her orchard would be defiled if heretics were allowed to eat under her apricot trees. So, she closed the agritainment facility and cut down the trees, living a hard life ever since. Her study in the vocational education and training center helped her realize the harm of religious extremism. Now, she despises the dogma that ruined her life. After her graduation, she reopened her business and rekindled hope in her life. This story tells us that, after study in vocational education and training centers, religious extremism has been cleared out from people's minds. 

The second story is about Buzuola Rozi. He is also a student who graduated from a vocational education and training center. With the help of local governments and the skills he learned from the center, he opened a Specialized Cooperative on embroidery. It has created over 30 jobs for local villagers, helping lift the fellow villagers out of poverty. This story tells us students can gain improvement in the centers and become useful talents for society.

The third story is about Zuoranmu Abuduyusufu. After his study in a vocational education and training center, he has not only got rid of all vestiges of religious extremism, but also began to take good care of his yard. He called for his neighbors to improve the village's environment together. Thus, he was awarded a model in protecting the environment. This story tells us that people in the centers pursue a modern and civilized life, and are now playing a leading role in improving the society.

Xinjiang has more stories like these. That's why all people in Xinjiang realized that, without the vocational education and training center, life in Xinjiang would not be as stable as it is today. People of all ethnic groups in Xinjiang show their support for this endeavor. Since the end of last year, more than 1,000 people of over 70 delegations from 91 countries, including foreign officials, diplomatic envoys in China, media reporters and religious figures have visited vocational education and training centers. They all said what they witnessed in Xinjiang was different from the descriptions by the U.S. and some other Western countries. Xinjiang's counter-terrorism and de-radicalization approach fully conforms with the purposes and principles of the United Nations in combating terrorism and safeguarding basic human rights. Thank you.

NBC:

Last March, Xinjiang autonomous region government chairman Shohrat Zakir said, and I quote, "Generally speaking, we will have fewer and fewer people of these training centers. If one day the society no longer needs, then these training centers will gradually disappear." My question is: Is there any estimate of how many people are still in these training centers, and when they would likely begin to disappear? Thank you.

Shohrat Zakir:

Let me answer this question. Based on the grim situation of violent terrorist activities in Xinjiang, we set up the vocational education and training centers to carry out vocational skills education and training. The number of individuals participating in vocational skills education and training is dynamic, some come in and some go out. Some overseas media outlets claimed there were "a million or even 2 million" trainees in Xinjiang vocational education and training centers. Such claims are purely fabricated and unfounded. At present, all the trainees, who have participated in the education and training centers that integrate "the learning of standard Chinese language, laws and skills as well as de-radicalization," have completed their studies. With the help of the government, they steadily obtain employment, improve their quality of life, and live a happy life.

Practice proves the establishment of the vocational education and training centers is a useful exploration for Xinjiang Uygur autonomous region to carry out the fight against terrorism and the work of de-radicalization in accordance with the law. As the next step, in order to meet the desires of grassroots cadres and the masses to improve their personal qualities, we will continue to provide daily, routine, normalized, and open education and training to village cadres, rural CPC Party members, farmers, herdsmen, and unemployed graduates from junior or senior high schools who are willing and have a demonstrable need, as we follow the principles of respecting individual will, allowing them to make an independent choice, categorizing the training on offer, and offering freedom to come and go. We will focus on educating and training them in speaking and writing standard Chinese language, knowledge about the laws, vocational skills, etc. Depending on the training contents, the training time can be either long or short. Thank you.

CGTN:

It is reported that Xinjiang is curtailing Muslim citizens' freedom of religious belief through demolishing mosques on a large scale, forbidding Muslims to fast during the holy month of Ramadan, and detaining some religious personnel who failed to win support from the government. Is such report true? Thank you.

Shohrat Zakir:

This question will be answered by Mr. Erkin Tuniyaz.

Erkin Tuniyaz:

Thank you for the question. The report you mentioned is false and groundless. Respecting and protecting freedom of religious belief is a basic policy of our country. The Constitution stipulates that citizens of the People's Republic of China enjoy freedom of religious belief, and that the country protects normal religious activities. The Regulations on Religious Affairs promulgated by the State Council and the Regulations of the Xinjiang Uygur Autonomous Region on Religious Affairs (promulgated by the local government of Xinjiang) reflect these constitutional principles.

In Xinjiang, we fully implement the policies on freedom of religious belief adopted by the Communist Party of China (CPC). All citizens, no matter whether they believe in a religion or not, equally enjoy political, economic, social and cultural rights. No citizen suffers discrimination or unfair treatment for believing in, or not believing in, any religion. Islam has achieved a great inheritance and sound development in Xinjiang. There are now more than 20,000 mosques, over 29,000 Islamic clerical personnel and 103 Islamic associations at all levels in the autonomous region. In addition, we have set up 10 religious colleges, including the Xinjiang Islamic Institute, which has eight branches at Kashgar, Hotan and Ili, and in the Xinjiang Islamic School. These institutes take in a certain number of students each year, providing them with a secondary vocational education or beyond. More than 1,000 students are studying in these colleges, which have the ability to house over 3,000 if necessary. Channels for believers to gain religious knowledge have been expanded. Religious classics, such as the Koran and Selections from Al-Sahih Muhammad Ibn-Ismail al-Bukhari, have been translated and published in the standard Chinese, Uygur, Kazakh, and Kyrgyz languages. We have taken various measures to ensure successful pilgrimages to Mecca for Muslims. We arrange charter flights every year for them. The Xinjiang regional government funds the medical care and interpretation for pilgrims, and offers other services to ensure safe and orderly pilgrimages. So far, more than 50,000 Muslims in Xinjiang have been to Saudi Arabia on such pilgrimages.

As for the so-called large-scale mosque demolition in Xinjiang, this statement is simply groundless. Instead, local government at all levels in Xinjiang have made continuous effort to improve the public services of various mosques, and much work has been implemented accordingly. Mosques in Xinjiang have been equipped with water, electricity, road connectivity, natural gas, communications network, radio and television broadcasting facilities and libraries; ablution facilities and flushing toilets have been installed in some mosques to facilitate Jumu'ah prayers. Other facilities installed or added to mosques include medical services, LED screens, computers, electric fans or air conditioners, fire-fighting equipment, natural gas, drinking water facilities, shoe coverings or automatic dispenser of shoe coverings, and lockers. All of these provide great convenience to worship, and have been much appreciated by religious personnel and believers.

Various facts have proven that the policies on the freedom of religious belief have been fully implemented in Xinjiang. Muslims' freedom of religious belief is protected by law, and their normal religious needs have been effectively satisfied. For some Western politicians and media who share a self-imposed bias and adopt a double standard on religious issues, we urge them to look at China's religious policies and freedom of religious belief in an unbiased manner, and stop using religion as a pretext to interfere in other countries' internal affairs. Thank you.

Yomiuri Shimbun:

Recently, it was reported that the International Consortium of Investigative Journalists (ICIJ) obtained "classified documents" concerning Xinjiang, claiming to "expose the inner workings of mass detention camps in Xinjiang". Could you clarify whether this document is authentic or not? If the document is fake, what is the basis for your judgment? Thank you.

Shohrat Zakir:

I would like to invite Mr. Xu Hairong to take this question.

Xu Hairong：

I want to emphasize again that there is no such thing as a so-called "detention camp" in Xinjiang. The so-called reports released by the New York Times, the International Consortium of Investigative Journalists and other overseas media and organizations have wantonly discredited the vocational education and training centers and smeared the Chinese government's genuine efforts in counter-terrorism and de-radicalization. China expresses strong indignation and firm opposition to such reportage. China's Xinjiang policy is transparent, righteous and consistent. The Party and government adhere to the people-centered development approach and continuously improve the sense of fulfillment, happiness and security of people of all ethnic groups. Any attack, slander or smear on Xinjiang is futile. The efforts made by officials and people of all ethnic groups in Xinjiang to realize social stability and long-term security and order deserve fair comments by the international community. Thank you.

Xinhua:

Xinjiang, especially southern Xinjiang, is a neighborhood of ethnic minorities, and also a State-level destitute area featuring a tough task in poverty alleviation. At present, how many poverty-stricken counties and population are there in Xinjiang? And what kinds of difficulties and challenges do you face during the poverty alleviation work? Thank you.

Shohrat Zakir:

Mr. Parhat Rozi will answer your question.

Parhat Rozi:

Xinjiang Uygur autonomous region always adheres to the basic strategy of targeted poverty alleviation, and we are making all-out efforts to win the battle. This year, we have earnestly implemented a series of strategies to alleviate poverty, including "two no worries, three guarantees", "seven batches" and "three intensified efforts. The "two no worries" refer to achieving the goal of poverty alleviation so that those who have been living in poverty no longer have to worry about food and clothing. And the "three guarantees" refer to achieving the goal of guaranteeing compulsory education, basic medical treatment and housing security. The "seven batches" refer to supporting the poor households through labor reallocation, industrial development, relocation, eco-compensation, service purchase, social security, and training poor people into border guards. And the "three intensified efforts" refer to getting people out of poverty through promoting education, improving health care service, and building more infrastructures. By doing so, we have made great progress. From 2014 to 2018, a total of 588,700 households involving 2.3147 million people have been lifted out of poverty, so that we have been able to remove 2,131 villages and 13 counties from the poverty list. The poverty incidence rate has dropped to 6.51% from 22.48% in early 2014. 

We will maintain our focus on impoverished people with targeted and differentiated measures, and pool all resources at our disposal to win the battle against poverty. In 2020, all rural residents are expected to have been lifted out of poverty; by then, people of all ethnic groups in Xinjiang will become members of a moderately prosperous society in all respects, along with all other parts of China. Thank you.

Associated Press of Pakistan:

In recent years, the global security situation has become increasingly complex, and pressure for fight against terrorism has increased. Could you please brief us about the current security and stability situation in Xinjiang? 

Shohrat Zakir:

Thank you for your question. So far, Xinjiang has seen no violent terrorist attacks for three consecutive years, with infiltration of extremism being effectively contained, social public security notably improved, and people of all ethnic groups living and working in peace. People of all ethnic groups in Xinjiang understand that the peace and stability evident today did not come easy, and we all hope that this kind of harmonious situation will continue. Thank you.

The Global Times:

Will the Xinjiang regional government allow international human rights organizations, diplomatic envoys of Western countries in China, and foreign journalists to go to the region for interviews and news coverage? Thank you.

Shohrat Zakir:

Mr. Xu Hairong please answer this question.

Xu Hairong:

Xinjiang is a good place. People of all ethnic groups there are hospitable. We open our arms to welcome guests from all over the world. Confucius, the ancient Chinese sage, once said "it is such a pleasure to have friends coming from afar." As I said earlier, since the end of 2018, we have invited more than 1,000 people of more than 70 groups from 91 countries to visit Xinjiang. They have generally stated that what they saw and heard in Xinjiang was completely different from the picture being painted by some American and Western politicians and media outlets. We know that the Chinese diplomatic service has issued invitations to senior U.N. human rights officials many times, and currently maintains close communications with the world body. However, the American government and some other governments of the West continue to demand that China to allow U.N. officials to visit Xinjiang; on the other hand, they have pressured and interfered with the U.N. officials who have visited Xinjiang, including very senior people. I think this approach suggests a hidden political agenda.

Xinjiang is an open region. We welcome anyone from all parties and all countries to visit the region on the premise of respecting China's sovereignty, abiding by Chinese laws, and treating each other as equals. Thank you.

Hu Kaihong:

Now, it's time for the last question.

Hong Kong-based Economic Herald:

What progress has Xinjiang made in accelerating the building of the core area of Silk Road Economic Belt? Thank you.

Shohrat Zakir:

I'm glad to answer your question. Xinjiang Uygur autonomous region is committed to implementing the Belt and Road Initiative, focusing on "one port, two zones, five centers, and a customs-based economic belt." The "port" refers to Urumqi International Land Port Area, to be developed into a landmark project in the core area of Silk Road Economic Belt, playing an important role in gathering commodities, building industrial parks and attracting businesses. Currently, the China-Europe Train Urumqi Center is operating smoothly. The number of west-bound international freight trains departing from Xinjiang has now exceeded 3,000. The "two zones" refers to the Horgos and Kashgar economic development zones, located in the northern and southern parts of Xinjiang respectively. Enjoying preferential policies from the central authorities, the two zones are committed to attracting businesses, and making themselves important pillars and demonstration zones for innovative development in the two areas. The "five centers" refers to the five Urumqi-based centers covering land routes west of Xinjiang. Specifically, they are: a transportation center, a trade and logistics center, a cultural and sci-tech education center, a regional financial center, and a medical service center covering Central Asia. Meanwhile, we have promoted the effective implementation of a batch of major infrastructure as well as economic and social cooperation projects. At present, there are 21 civil aviation airports in Xinjiang, and more are under construction. The railway network now exceeds 6,000 km in length. Expressways among 14 prefectures and cities in Xinjiang form a network. The Lanzhou-Xinjiang high-speed railway has been operating for years. From January to October this year, our total foreign trade imports and exports increased by 28% year-on-year, and it is expected to maintain 20% annual growth or more. We have set up a pilot zone for innovation-driven development of the Silk Road Economic Belt, attracting more than 130 industry-university-research institutions. Last year, the added value of strategic emerging industries in the region increased by 13% year-on-year, and the added value of high-tech manufacturing industry increased by 33%. Xinjiang has carried out cross-border RMB business with 98 countries and regions. Habib Bank Limited of Pakistan has also set up an institution in Xinjiang, and the China-Kazakhstan Horgos International Border Cooperation Center has realized the cross-border transfer of Kazakh tenge cash. In addition, 12 hospitals in Xinjiang have joined the Shanghai Cooperation Organization Hospital Alliance and established remote medical service platforms with neighboring countries. In the past four years, we have admitted more than 20,000 foreign patients. The port economic belt, incorporating 19 national-level open ports, vigorously contributes to the development of an export-oriented economy such as the import and export commodity processing industry, border (cross-border) tourism, commodity exchange of people living along the border, and e-commerce. The "passage economy" is being transforming into an "industrial economy" and a "ports economy," and the geographical and resource advantages of Xinjiang are being translated into economic advantages. This is what we have already done in the implementation of the Belt and Road Initiative, especially those taking advantage of geographical advantages as a core region of Silk Road Economic Belt. In the future, we will continue to increase the construction of core areas on the Silk Road Economic Belt westward. Thank you!

Hu Kaihong:

Today's briefing is hereby concluded. Thanks to the four speakers and thanks to the journalists.

Translated and edited by Chen Xia, Zhu Bochen, Wu Jin, Zhang Liying, Lin Liyao, Cui Can, Guo Yiming, Wang Yiming, Zhang Rui, Wang Qian, Fan Junmei, Yang Xi, He Shan, Li Xiao, Zhou Jing, Geoffrey Murray. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Fu Zhenghua, minister of justice and head of the National Office for Law Popularization

Deng Chuanhuai, director-general of the Department of Policies and Regulations, Ministry of Education

Zong Jinyao, director-general of the Department of Regulations, Ministry of Agriculture and Rural Affairs

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

Dec. 3, 2019

Hu Kaihong:

Ladies and gentlemen, good afternoon. Welcome to this press conference. As Dec. 4 is National Constitution Day, we are delighted to invite Mr. Fu Zhenghua, minister of justice and head of the National Office for Law Popularization, to introduce issues related to the National Constitution Publicity Week, and introduce the work of law popularization and law-based governance. He will also answer some of your questions.

We also have with us today: Mr. Deng Chuanhuai, director-general of the Department of Policies and Regulations, Ministry of Education; and Mr. Zong Jinyao, director-general of the Department of Regulations, Ministry of Agriculture and Rural Affairs.

Now, Mr. Fu will offer you a brief introduction.

Fu Zhenghua:

Ladies and gentlemen, media friends, good afternoon. Dec. 4, is the sixth National Constitution Day. From Dec. 1 to 7, the Publicity Department of the Communist Party of China (CPC) Central Committee, the Ministry of Justice and the National Office for Law Popularization are jointly organizing the National Constitution Publicity Week to popularize knowledge related to the Constitution. On Dec. 1, the Publicity Department of CPC Central Committee and the Ministry of Justice jointly launched the major activities planned for the week in the two host cities of Beijing and Shanghai, marking the start of the publicity week.

Generally speaking, this year's publicity week has three distinct features.

First, it clearly puts the emphasis on the principles of the fourth plenary session of the 19th CPC Central Committee. The theme is clear: "Upholding the principles of the Constitution, modernizing the national governance system and capacity." The focus is on Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, General Secretary Xi Jinping's new philosophy, new thoughts and new strategies on advancing law-based governance，the principles of the 19th CPC National Congress, and the principles of the fourth plenary session of the 19th CPC Central Committee. Priority is being given to the popularization of knowledge related to the position, role and main content of the Constitution, the achievements of law-based governance in China, and the core values of socialism.

Second, the responsibility system of "whoever enforces the law shall popularize the law" has been thoroughly implemented alongside requiring the media to take up its social responsibility of popularizing the law. This year's publicity week consists of host-city activities and theme-day activities, with activities held in host cities focusing on different themes. From Dec. 1 to 7, different government departments under the central authorities will organize seven theme-day activities in enterprises, villages, government departments, schools, communities, armies and cyberspace. This is the first time we have organized the event in such a way. It's also a special feature of this year's publicity week. On the morning of Dec. 4, the General Office of the National People's Congress (NPC) Standing Committee, the Publicity Department of the CPC Central Committee and the Ministry of Justice will jointly organize a symposium on National Constitution Day. By requiring law-enforcing departments to popularize the law and enhancing media's role in the popularization of law-related knowledge, local governments and government departments under the central authorities have planned various closely-connected events.

Third, we seek to ensure more people participate in the activities in a more devoted way, and make the activities more colorful. Besides major activities in the host cities and theme-day events, there will be other activities to vividly explain the principles of the Constitution to the public, and ensure they keep these principles in their everyday life.

Now, please allow me to briefly introduce some of the activities.

First, the Ministry of Justice and the National Office for Law Popularization, together with China Media Group, selected this year's Rule of Law Figures. The selection was conducted under the theme of "the Spirit of the Constitution, the Strength of the Rule of Law". A program regarding the awards ceremony will be broadcast on China Central Television tomorrow evening.

Second, open days encouraging the public to visit institutes and all departments of the Ministry of Justice have been held. For example, earlier this morning we held one about institutes, and those for other departments will soon be staged.

Third, the Ministry of Justice and the National Office for Law Popularization will hold a publicity event in Changshu, Jiangsu province with the theme of "Rule of Law Makes a Better Life".

Fourth, the Publicity Department of the CPC, the Cyberspace Administration of China, the Ministry of Justice and the National Office for Law Popularization will co-organize the 16th exhibition and awards ceremony for animation and micro video works related to the exercise of rule of law.

Fifth, through the joint initiative of the National Office for Law Popularization and China State Railway Group, Constitution publicity films as well as micro video collection entitled "The Constitution and Me" were broadcast in more than 2,300 stations and on more than 2,500 high-speed trains.

Sixth, the Ministry of Justice and the National Office for Law Popularization organized the selection of 10 innovation cases of law popularization and legal governance, and designated the second batch of national legal publicity and education bases.

Seventh, on National Constitution Day on Dec. 4., telecommunications operators, including China Mobile, China Unicom and China Telecom, will send short messages related to Constitution publicity to more than a billion mobile phone users nationwide.

Not long ago, the Ministry of Justice reported to the Standing Committee of the National People's Congress (NPC) and its related bodies on promoting public legal education and other efforts to raise awareness of the Constitution. The Ministry of Justice is also exploring ways to put in place a checklist of laws that leaders and cadres should learn, as well as formulating lists and categories of both basic laws including the Constitution and other laws considered necessary in their respective sectors. These have been regarded as the fundamental task of promoting law knowledge among leaders and cadres; the basic grounds to evaluate their knowledge of law-based governance; and the primary content of their annual law-related reporting, so as to promote their role in leading study of the Constitution and other laws.

To raise public awareness of the Constitution is a long-term task, and also the major duty of the Ministry of Justice. Following the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly put into practice the guiding principles from the Party's 19th National Congress and the second, third and fourth plenary sessions of the 19th Party Central Committee, promoting study and knowledge of the Constitution on a regular and institutionalized basis, so that every week can become a "Constitution Publicity Week" and every day a "Constitution Publicity Day".

That's all for my brief introduction. Next, myself and my two colleagues Mr. Deng Chuanhuai and Mr. Zong Jinyao are ready to answer your questions. Thank you.

Hu Kaihong:

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

People's Daily:

In 2017, the Opinions on the Implementation of the Responsibility System for Law Popularization of 'Those Who Enforce the Law Should be Responsible for Popularizing the Law' among State Organs was issued by the General Office of the CPC Central Committee and the General Office of the State Council, and the responsibility system was specially emphasized in the seventh five-year plan on enhancing public legal awareness. What efforts have been made by the Ministry of Justice and the National Office for Law Popularization to implement the responsibility system and stimulate various departments' participation in enhancing the public's knowledge of the law? Thank you.

Fu Zhenghua:

Thanks for your question. Serving as the director of the National Office for Law Popularization, I think the question you've raised relates to my job.

I think the advancement of the responsibility system - an innovation in the concept of public legal education, practice and institution in the new era - is an important achievement, as well as a major landmark measure in the seventh five-year plan on enhancing public legal awareness. In recent years, we have made great efforts to implement the responsibility system from the following aspects:

First, strengthening coordination for the implementation of the responsibility system. With the approval from the State Council, the Ministry of Justice has taken the lead in establishing an inter-ministerial joint conference mechanism on implementing the responsibility program of strengthening public legal awareness, a crucial step in promoting the responsibility system.

Second, compiling a list covering all aspects of legal education responsibilities. The National Office for Law Popularization has compiled and released two batches of law popularization responsibility lists for state law enforcement departments, covering 50 departments and sectors and clarifying their duties and tasks in carrying out public legal education.

Third, highlighting the role of interpreting the law with cases. The Ministry of Justice, the National Office for Law Popularization and the Supreme People's Court have jointly issued the opinions on regularizing and institutionalizing the working mechanism inviting state functionaries to observe court trials. Cadres of the central Party and state institutions have been invited to observe court trials, and we've also promoted this working mechanism across the country.

Fourth, strengthening the exchange and promotion of experiences. We have organized nationwide activities to identify innovative practices in law popularization. We have guided all departments in different areas to enhance law popularization in implementation of the system of disclosing information on administrative law enforcement, the system for recording entire law enforcement process and the system for reviewing the legality of major administrative law enforcement decisions. A series of legal publicity activities have been held across the country, such as the legal publicity day, the legal publicity week and the legal publicity month. Moreover, we've also promoted the practice of evaluating the performance reports of the law enforcement departments in legal publicity and education.

Fu Zhenghua:

Next, we will continue to organize, coordinate, offer guidance to, supervise and urge the implementation of the responsibility program in which state law enforcement departments are responsible for strengthening public legal awareness in various regions and across different departments .

First, we will integrate the responsibility program, as a basic component and important task, into the building of a government based on the rule of law in which we have been unsparing in our efforts to promote it. At present, the Commission for Overall Law-Based Governance of the CPC Central Committee is carrying out the building of a government based on the rule of law. We are increasing the weight of the work of law popularization in the metrics involved in assessing the success of legal governance. When it comes to implementing the responsibility program and conducting supervisory tasks, we consider law popularization as a necessity in terms of inspection. We tie the strengthening of law popularization closely with promoting the rule of law in government. We see it as one of the due responsibility elements of legal governance.

Second, we will make more effort to popularize the law when undertaking our legislative work. We will implant the law popularization and law-related education into the legislative works. We will explain legal issues, respond to the concerns of the general public, and promote the spirit of rule of law, by the means of holding press conferences, offering experts' opinions, soliciting public opinions, holding hearing sessions, and organizing media campaigns.

Third, we will increase efforts to popularize the law through disclosing the handling of various cases. We will push for all judicial and law enforcement departments to choose typical cases (for disclosure), and do a better job in offering legal explanations for cases and incidents of great concern to the general public. We will turn the handling of high-profile cases and incidents into a process of nationwide law popularization.

Fourth, we will firmly implement the responsibility program of law popularization, focusing on the responsibility list. We will enhance the appraisal of the implementation of the responsibility program in which state law enforcement departments are responsible for strengthening public legal awareness. Through case files review and examination, selecting and publishing typical cases and innovative programs, and deliberation of performance reports, we aim to further improve the implementation of the program.

CCTV：

Tomorrow will mark the sixth national Constitution Day. I have learned that the Justice Ministry and the legal knowledge popularization office are organizing a weeklong nationwide Constitution publicity campaign. What the Justice Ministry and the legal knowledge popularization office have done in recent years in publicizing the Constitution? In particular, how do you plan to instill the spirit of the Constitution? Thank you.

Fu Zhenghua:

Actually, my previous speeches have somewhat answered your questions. However, I will provide a further explanation, which is also the objective and the mission of our work.

Publicizing the Constitution has always been the top priority in nationwide law popularization work, and has been highly valued by the Justice Ministry and the legal knowledge popularization office. Since last year, a series of publicity activities have been organized with the aim of educating the public in "respecting the Constitution, learning the detailed provisions of the Constitution, abiding by the Constitution, safeguarding the Constitution, and using the Constitution". In this field, we focus on five areas:

First, we should define our priorities. Focusing on the constitutional amendment approved in 2018, we have made great efforts to publicize the great significance of enshrining Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era into the Constitution and adhering to and strengthening the overall leadership of the Communist Party of China. We have promoted the Constitution in enterprises, in rural areas, in Party and government organs, at campuses, in residential communities, at military camps, and in the cyberspace. We collaborated with relevant departments to organize activities to promote the Constitution at public transportation hubs, hotels, and in every household, and across the border areas. Last year, we launched our Constitution publicity week campaign in Hohhot, Inner Mongolia, emphasizing the importance of border areas in the publicizing of the Constitution. We broadcast videos to promote the Constitution at 2,300 stations and on 2,500 high-speed trains, injecting vitality into the publicity of the Constitution and implementing the publicity works at grassroot levels.

Second, our priority is to the leading officials and young people, the former being the "critical minority" and the latter "the future of our nation". To this aim, we held three lectures on the study and publicity of the Constitution at the Great Hall of the People in Beijing. These lectures have been recorded on CD-ROM disks and promoted throughout the network to support the learning of the Constitution by the central groups of the Party committees (leading Party members' groups) in all departments and regions. Also, we have given full support to the team of lecturers popularizing the Constitution and its laws. The team carried out lectures on the Constitution for cadres, organized them to attend and sit in trials; and motivated them to take the lead in respecting, learning and abiding by laws and solving problems with legal knowledge. We have worked with the Ministry of Education in incorporating the learning of the Constitution into a guideline for legal education in schools . As a part of this program, the activity of "learning the Constitution and respecting the Constitution" is required to be carried out among students throughout the country every year and Constitution morning reading will be added to the curriculum of around 400,000 primary and secondary schools all over China, so as to enhance the constitutional awareness among young people.

The third is to develop the constitutional culture. We have named in two batches twenty-five legal publicity and education bases in China to present the constitutional culture to the public. By now, constitutional elements have been subtly integrated into more than 3500 parks, 12,000 squares and 34,000 cultural corridors all over China. We have organized the selection of national examples on the rule of law and recorded a program named "Principles of the Constitution and Power of the Rule of Law" in cooperation with China Media Group which will be released soon. Through these activities, the authority of the Constitution has been firmly established throughout the society and a constitutional culture has thus been developed.

The fourth is to innovate our ways of spreading awareness about the Constitution. We have conducted a micro video collection activity, which has received a warm reception from the public, far beyond our expectations. These excellent micro videos will soon be sent and broadcast on the Internet. In addition, we will send public service text messages to 1.26 billion mobile phone users across the country to promote knowledge of the law. We will work with the State Council Leading Group Office of Poverty Alleviation and Development to compile a series of books that will help popularize the Constitution and alleviate poverty. In the future, we will launch intelligent law popularization platforms and carry out the Constitution publicity activities through new media and technologies.

Fifth, we have launched Constitution publicity week campaign on the basis of national Constitution Day that falls on December 4. As you all probably know, the campaign started last year and we achieved very good results. We will adopt similar methods to enhance the social effects of constitutional publicity during a weeklong campaign this year.

Next, we will continue to study and realize the principles of the fourth plenary session of the 19th CPC Central Committee, comprehensively institutionalize and regularize Constitution publicity activities and modernize the state governance system. We should encourage constitutional learning, publicity and education under Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We must express the need to maintain political integrity, think in big-picture terms, follow the leadership, and keep in alignment and confidence in the path, theory, system, and culture of socialism with Chinese characteristics. We must 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.

The second is to give emphasis to cadres, the key minority, who have always been key to the popularization and learning of laws and solving problems with legal knowledge. Cadres should be leaders in the construction of the rule of law, promoting the central groups of Party organizations (or committees) in various departments and regions to put the Constitution on their theoretical learning plans. A system of law learning list clarifying what the cadres should know, and should be capable of, should be set up, as a means of promoting them to be leaders in respecting, learning and abiding by laws and solving problems with legal knowledge.

The third is to implement the responsibility system of "whoever enforces the law shall popularize the law", to give full play to the role of the inter-ministerial joint meeting, to develop and implement the responsibility list of state organs, and to promote state organs at all levels to carry out Constitution publicity and education. This includes the legislative, judicial, law enforcement and legal services.

Fourth, keep close to the people, and adopt a way of publicizing the Constitution that is both comprehensive and easily understandable. We must popularize the Constitution in an accurate, thorough and vivid manner. We also hope that all our journalist friends will make a contribution to help publicize the Constitution. Thank you.

China News Service:

We are concerned about the legal education among young Chinese as you just mentioned. Young people, who are supposed to steer the future course of the nation, will play a decisive role in advancing the rule of law based on their knowledge and comprehension on the Constitution. Therefore, I have a question for the Ministry of Education about what actions you are taking to promote awareness of the Constitution among young people in schools and on the campuses. Thank you.

Deng Chuanhuai:

Thank you for your question. Now, I would like to give a brief introduction. As you say, young people, who will decide the future destiny of the nation, have been targeted as an important group to gain full understanding of the Constitution and knowledge of the rule of law. From primary schools to institutes of higher education, Chinese students form a huge population of 270 million. Therefore, it is responsible and highly significant to arm them with knowledge of the essence of the Constitution as well as the principles of the rule of law. General Secretary Xi has often stated that education in regard to the Constitution should start from young children, who should grow up under its influence and ingrained principles. Over the past few years, led by the national legal knowledge popularization office and the Ministry of the Justice, the Ministry of Education has intensified its efforts to promote educational campaigns focusing on the Constitution among young people, bringing relevant knowledge into the classroom, so students in every school in the country can have opportunities to learn it by heart. We are seeking to achieve this through four general principles:

First, we emphasize the classroom as the major platform for teaching students knowledge of the Constitution. We have established a top-level design with the Ministry of Justice to jointly issue the Synopsis of Legal Education among Adolescents. Constitution-centered legal education is expected to be taught in classes on a regular basis. Besides, we have replaced the traditional ethical textbooks used for compulsory education with a new book entitled " Ethics and Laws". There are legal textbooks compiled especially for the first semester of grade six and second semester of the grade eight, accentuating the contents of the Constitution. Moreover, we have added knowledge of the Constitution to the politics curriculum among institutes of higher education, opening a class entitled "Ethical Education and Legal Basis", in particular, to be a common course for college students to learn about the Constitution in designated chapters.

Second, we have created pedagogic approaches to upgrade the effect of education on the Constitution. Every year, we organize a series of campaigns to encourage students across the country to learn and be able to speak on the Constitution through contests in forms of speeches or knowledge as well as video programs to enhance legal education on campuses. Meanwhile, the Ministry of Education has contributed a program involving 3.7 billion collective visits of young individuals to the youth legal knowledge popularization website. Among the 100 million registered users, about 40.5 million have been honored with the title of "Little Defender of the Constitution" after gaining certain scores through the online tests. This award is designed to give those children a sense of pride. Meanwhile, we have opened classes on the webpage with 500 kinds of relevant knowledge through 121 episodes of video lessons designed for students across the country.

Third, we should boost awareness of respecting the Constitution through specific rites. Under the arrangement of the National Office for Law Popularization, we have carried out a morning reading activity on Constitution Day every year since 2014. This activity has now become a famous means of publicizing the Constitution within national education system, and won recognition from the law popularization office. This year of 2019 marks the sixth year the morning reading activity of the Constitution has been thus carried out. Tomorrow morning, a vice minister of education will lead the reading through the medium of the internet, and over 20 million students from elementary and high schools all over the country will read aloud some articles of the Constitution simultaneously. Apart from the morning reading activity, we have also instructed local schools to create a culture of honoring the Constitution by means of the national flag-raising ceremony, legal publicity-themed class-wide meeting and club activities.

Fourth, we should provide a guarantee and lay the foundations for the publicity of the Constitution. We have organized and launched a program of training outstanding teachers for legal education in elementary and high schools, cultivated "seed teachers," entered the special training programs of leading teachers for legal education into the list of demonstrated projects under the National Cultivation Plan. We have also built several platforms, including the Research Center of Education of the Constitution for Juveniles, brought into full play the advantages of human resources and recognized professional disciplines of the education system, and improved theoretical research, providing forceful support for education of the Constitution among the young.

Next, we will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and advance the legal education and education of the Constitution among our young people through "five combinations." The tasks of this form of legal education should be combined with the efforts in studying and implementing General Secretary Xi Jinping's major expositions on education. The tasks should be combined with the efforts in implementing the outline on conducting patriotic education in the new era, and promoting and practicing core socialist values. Also, we should combine the education of the Constitution among young people with enhancing education concerning China's history, national conditions and fine cultural traditions, making it more targeted and effective, so as to form a solid foundation for the modernization of the country's system and capacity for governance.

Hong Kong Cable Television:

The judicial system is of great importance to the whole country. Given recent changes in the situation of Hong Kong, will there be communication and deeper cooperation with the government of the Hong Kong Special Administrative Region (SAR) in this respect?

Fu Zhenghua:

Publicity of the Constitution is implemented nationwide, so it certainly includes Hong Kong. China's Constitution is the country's fundamental law reflecting the common will of all Chinese people. Since Hong Kong's return to the motherland, the Hong Kong SAR government and organizations who love the motherland as well as Hong Kong have invested a lot of effort in raising public awareness of the Constitution and the Basic Law.

As you might have noticed in news reports, I attended a symposium marking the 20th anniversary of the implementation of the Macao SAR Basic Law this morning, which was presided over by Li Zhanshu, chairman of the Standing Committee of the National People's Congress (NPC) and Vice Premier Han Zheng. I think both Hong Kong and Macao attach as much importance to publicity of the Constitution as does the mainland, and have made great efforts to this end. For example, Hong Kong held symposiums to mark the national Constitution Day in the past two years. Officials from the HKSAR Basic Law Committee under the NPC Standing Committee attended the events. They delivered authoritative and systematic elaborations regarding the key status of the Constitution, and it and the Basic Law of the HKSAR together form the constitutional basis of the latter. Relevant departments of the central government will continue to support the HKSAR in organizing activities of Constitution publicity.

In addition, the Chinese mainland and the HKSAR have close judicial cooperation. First, we promoted the opening of legal services to enhance understanding among the people. Since 2003, the Chinese mainland has introduced 26 measures to open to the legal services industry in Hong Kong. Second, we have enhanced exchanges and cooperation in mediation and arbitration, and established collaboration platforms. Third, we have organized training programs for young people working in the legal field. These programs have enabled a large number of Hong Kong students and young legal personnel to participate in field study through 19 law offices, arbitration agencies and courts on the Chinese mainland, bolstering legal exchanges among young people. Thank you.

China Daily:

The work related to agriculture, rural areas and rural residents is very important. Agriculture and rural areas are said to be the foundations of China's steady economic and social development; however, they are also the biggest weakness. It has long been difficult to popularize the Constitution and laws among hundreds of millions of farmers. What measures will the Ministry of Agriculture and Rural Affairs take to promote this work in rural areas? Thank you.

Zong Jinyao:

Thank you for your great attention and support for the cause of agriculture, rural areas and farmers. The Constitution makes clear provisions on the basic rural management system, rural land system, and the protection of farmers' properties and rights, providing fundamental guidance for the work related to agriculture, rural areas and rural residents. Popularizing the Constitution and laws in rural areas is conducive to the implementation of the overall rural vitalization strategy, modernization of the rural governance system and its capacity, maintenance of harmony and stability in rural areas, as well as long-term stability across the country.

The Ministry of Agriculture and Rural Affairs gives great emphasis to the work on popularizing the Constitution and laws in rural areas, regarding it as an important political task. We have integrated it into the program of strengthening rural governance, promoting the rule of law in the agriculture sector and rural areas, implementing the rural vitalization strategy and modernizing the agriculture sector and rural areas. We have also organized and held popularization activities in regard to the Constitution and laws in the countryside together with the Ministry of Justice and the National Office for Law Popularization. The activities have the following three highlights.

First, a well-defined theme. This year's selected theme is "Thoroughly implementing the Constitution and laws, Modernizing rural governance system and capacity". In regard to the legal needs of rural residents and certain hot issues, we have focused on holding popularization activities for the Constitution and laws in rural areas, enhancing residents' affection and awareness in this regard.

Second, a variety of formats have been used. We have distributed handbooks and compilations of the Constitution and agriculture-related laws across the country, organized quizzes on constitutional knowledge, and held legal consultation activities and folk culture shows. We also seek to popularize the Constitution and agriculture-related laws through new technologies and new media like micro videos and animations.

Third, we have emphasized collaboration at different levels. We held a popularization activity in Shunyi district yesterday together with the Beijing Municipal Government, which achieved good outcomes. We also required government departments in charge of agriculture and rural affairs at different levels to carry out diverse activities to enhance the publicity of the Constitution and agriculture-related laws according to local conditions during the Constitution Publicity Week, so as to implement the responsibility system of law popularization, that is, "whoever enforces the law shall popularize the law."

Through these efforts, we have helped to foster a sound law-based environment featuring acting in accordance with the law, turning to legal services for help when in trouble, solving problems with legal knowledge and resolving conflicts with laws, and provided a strong guarantee for the implementation of the rural vitalization strategy and the modernization of rural governance system and capacity. Thank you.

Guangming Daily:

The fourth plenary session of the 19th CPC Central Committee that concluded not long ago gave special emphasis to the rule of law. What new requirements has the fourth plenary session put forward for the nationwide popularization of the laws, and how will they be implemented? Thank you.

Fu Zhenghua:

Thanks for your question. We have been earnestly studying and fully implementing the spirit of the fourth plenary session of the 19th Central Committee of the Communist Party of China (CPC). It's a very important meeting as China is at a crucial moment in realizing the two centenary goals. The session reviewed and adopted the CPC Central Committee's decision on some major issues concerning how to uphold and improve the system of socialism with Chinese characteristics and advance the modernization of China's system and capacity for governance. It also clearly pointed out the need to strengthen public legal education, increase awareness of the rule of law, improve the public legal service system, and further strengthen the public foundations of law-based governance. I think the session has put forward new requirements for law popularization in the following four aspects:

First, we should take the advantage of the socialist system with Chinese characteristics in spreading knowledge of the law, especially upholding the centralized and unified leadership of the CPC in our work. We should give full play to the CPC's role in exercising overall leadership and coordinating the efforts of all involved to enhance legal publicity and education.

Second, we should pay more attention to the people's needs. The law popularization work should focus on meeting public demands and deliver targeted legal education programs. We will ensure the people are placed at the center, protect their legitimate rights and interests, and meet their needs. This will be taken as the starting point and ultimate goal of our work. We should ensure we popularize areas of the law that people need to know and care about, in order to solve their problems. By explaining the law in relation to hot and difficult issues of public concern, we can enhance the effect of public education on the law . We will take the ways that people are delighted to see and hear about, in a bid to make the system of laws fully accepted and understood by them.

Third, we should focus on developing a socialist culture of rule of law. We should strengthen the guiding role of Marxism in the ideological field, take it as the primary task to study and publicize General Secretary Xi Jinping's new ideas, thoughts and strategy of comprehensively promoting law-based governance of China, and use them to guide our work in promoting rule of law and raising public awareness of the law.

Fourth, we should focus on law-based governance at grassroots level. We should combine this with systematic, comprehensive and at-source governance, so as to set up a grassroots-level social governance system integrating self-governance mechanisms, rule of law and rule of virtue. At the same time, governance at the grassroots level should be based on rural areas, and we should give full play to the role of the law in leading, regulating and ensuring the construction of governance there.

In addition, we should strengthen international publicity of China's law-based governance. We should clearly explain the advantages of socialism with Chinese characteristics, and tell stories on China's national system and governance system to the world, in a bid to further expound the connotations of the system of socialist rule of law with Chinese characteristics for building a community with a shared future for humanity and support the implementation of the Belt and Road Initiative and the "going global" of Chinese culture. We will strengthen international communication capacity building on publicizing China's national system and governance system by fostering relevant cultural products which feature the system of socialist rule of law with Chinese characteristics and can be well received in the international community.

To sum up, in accordance with the spirit of the fourth plenary session of the 19th Central Committee of the CPC, we still have a long way to go in our work of law popularization. I hope that our media friends will actively participate in the work and make due contributions to it. Thank you.

Hu Kaihong:

Because the time is limited, we will only be able to take two more questions.

Economic Herald:

What new measures does the Ministry of Justice plan to introduce to support and guarantee the implementation of Belt and Road projects? Thank you.

Fu Zhenghua:

Thank you for your question. This issue is one of top priority for the Ministry of Justice and the National Office for Law Popularization.

We all know that the Belt and Road Initiative requires not only promotion of cooperation in projects and investment, but also in establishing legal safeguards. We staff members with judicial administrative organization at all levels have carefully studied General Secretary Xi Jinping's important speeches and expositions, as well as decisions and arrangements made by the CPC Central Committee related to the Belt and Road. We will fulfill our duties and have actively committed ourselves to the implementation of Belt and Road Initiative. We will strive to provide legal services and safeguards for it.

Over the past year or so, we have carried out the following works:

First, the Ministry of Justice took the lead in convening the founding conference of the China-SCO Legal Service Committee and the first inter-ministerial joint meeting to vigorously promote the exchanges and cooperation of SCO members in the field of legal services and serve the development of regional economic and trade. It also aimed to provide legal safeguards for the Belt and Road Initiative. We also hosted the SCO Countries Forum on Legal Services.

Second, the Global Lawyers Forum (GLF) will be held in Guangzhou from Dec. 9 to 10. The All China Lawyers Association (ACLA) will hold a press conference soon to provide further information. At this GLF, we will also set up a new Belt and Road lawyers association, which was also initiated by the ACLA, and all the preparations for it have been made. The establishment of this association will create a favorable platform for cooperation among lawyers in countries along the Belt and Road. The GLF and the Belt and Road International Lawyers Association will promote China's image of a country under the rule of law. They will help build a new global platform for exchanges among lawyers and a more sophisticated global network for legal cooperation and partnership establishment.

Third, we vigorously encourage Chinese lawyers to expand business abroad to serve the companies as they "go global." From the end of last year, we have determined such a work direction, and comprehensively promoted Chinese lawyers to work in pushing forward the establishment of branches of Chinese law firms in overseas territories, accelerated the training of lawyers specially skilled in handling foreign-related matters, provided reliable legal services for key and major projects of infrastructure construction, strengthened the building of foreign-related public legal service platforms, carried out theoretical research on foreign-related legal services, promoted exchanges and cooperation with relevant countries and regions along the Belt and Road, and worked hard to further enhance legal compliance awareness among Chinese companies that seek to "go global", and provided precise and efficient legal services for construction of Belt and Road Initiative projects.

Fourth, we are actively promoting overseas publicity about the rule of law. We are strengthening foreign publicity of the rule of law, telling China's stories about enhancing the rule of law, and publicizing China's legal system in relevant countries and regions, especially those along the Belt and Road, in particular covering laws and rules about China's investment, trade, finance, environmental protection, etc. This is designed to ensure the countries and regions along the Belt and Road know and fully understand the operation of China's legal system. We are strengthening the rule of law education and legal training for Chinese enterprises as they "go global", so that they have a stronger sense of compliance and legality. We have also systematically compiled the laws, regulations and typical cases in the countries along the Belt and Road, to interpret the law by case studies, and improve awareness and ability of enterprises to use legal methods to solve problems. Thank you.

Yicai TV:

In recent years, the capital market has generally faced a problem of relatively low costs for violating the laws. How should the costs for violating the laws be raised in the future to form a deterrent of the law enforcement? Thank you.

Fu Zhenghua:

This issue is not closely related to today's topic. In my opinion, in the process of building the rule of law, we should not only hold those accountable for their illegal acts, but also ensure they face economic sanctions. This will increase the costs of their illegal acts and enhance the awareness of the whole society to respect, learn, obey and use the laws.

Hu Kaihong:

Today's press conference ends here. Thank you, Mr. Fu, Mr. Deng and Mr. Zong. Thank you everyone.

.

Read in Chinese

Speakers:

Zhao Yingmin, vice minister of the Ministry of Ecology and Environment

Li Gao, director-general of the Department of Climate Change, Ministry of Ecology and Environment

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office

Date:

Nov. 27, 2019

Xi Yanchun:

Good morning, ladies and gentlemen. Welcome to this press conference. This year's United Nations Climate Change Conference will open soon. Today, the report "China's Policies and Actions for Addressing Climate Change (2019)" was officially published. To help you gain a better understanding of this, we invited Mr. Zhao Yingmin, vice minister of ecology and environment, to give us an introduction to the work and answer some of your questions. Also present at the conference is Mr. Li Gao, director-general of the ministry's department of climate change. 

Now, I'll give the floor to Mr. Zhao Yingmin.

Zhao Yingmin:

Journalist friends, ladies and gentlemen, good morning. Welcome to the press conference on the report "China's Policies and Actions for Addressing Climate Change (2019)." On behalf of the Ministry of Ecology and Environment, I'd like to express my sincere gratitude to you for your support as well as your long-term interest in China's actions on climate change.

China has always attached great importance to addressing climate change. President Xi Jinping has repeatedly stressed that China's efforts to address climate change is not because others have asked us to do it, but is instead self-motivated. He also noted that addressing climate change is necessary for China's sustainable development, and is our way of assuming responsibility in the building of a community with a shared future for humanity. At the national conference on ecological and environmental protection, he said that we must actively implement the national strategy on addressing climate change, and promote the creation of a win-win, equitable and balanced governance mechanism on climate change. In July this year, Premier Li Keqiang presided over a meeting of the leading group of climate change, energy saving and emissions reduction, and planned major work to address climate change. At the fourth plenary session of the 19th Communist Party of China (CPC) Central Committee, which concluded recently, it was decided that we must improve the legal system and technical guidance for green production and green consumption, promote market-oriented innovation for green technologies, and do even more to promote green, circular and low-carbon development.

Over the past years, addressing climate change has been our major method to promote ecological progress, high-quality economic development, and the building of a beautiful China. A series of actions have been taken. Since 2018, guided by Xi Jinping's thinking on promoting ecological progress, governments at all levels and all departments under the central authorities have implemented plans made at the national conference on ecological and environmental protection, worked together and achieved new progress in the efforts to address climate change.

After reviewing our work on climate change, we formulated the report "China's Policies and Actions for Addressing Climate Change (2019)." It's the 11th annual report we have released since 2009. This year's version covers eight topics: mitigating climate change, adapting to climate change, formulating plans and establishing mechanisms, basic capacities, engaging extensive public participation, playing an active role in global climate governance, enhancing international cooperation and communication, and the basic position and views at the upcoming COP-25 of the United Nations Framework Convention on Climate Change (UNFCCC). The report comprehensively reviews China's policies and actions on climate change, and showcases China's achievements in the past year. It will help you get a clearer picture of the latest progress made as a result of China's actions on climate change.

In the past year, China has continued to address climate change. A series of policies and measures have been taken to curb greenhouse gas emissions, thus achieving a further reduction in carbon emission intensity. We have continued to adapt to address climate change and have improved various mechanisms. The carbon market has been built in an orderly manner and public awareness of the need to address climate change has been enhanced.

Meanwhile, the Chinese government has played an active and constructive role in global climate governance. Under the UNFCCC's principles of equity, common but differentiated responsibilities and respective capabilities, China has worked with various parties to promote progress in global climate governance, facilitated the negotiation on the Paris Agreement Work Programme to achieve positive results, and contributed Chinese wisdom and proposals at the U.N. Climate Change Action Summit. China has intensified communication and cooperation with various sides to address climate change, continued to do its best to help developing countries, deepened South-South cooperation to address climate change, remained committed to multilateralism, and continued to inject new vitality into global climate governance and global ecological progress. 

As a next step, we will firmly implement the national strategy on addressing climate change, efficiently curb greenhouse gas emissions, and actively adapt to climate change. We will also promote green and low-carbon development, play an active part in global climate governance, and ensure that our work on climate change will better help guide high-quality development, facilitate pollution treatment, and promote ecological progress.

The COP-25 of the UNFCCC will open soon. China will continue to play a constructive role, safeguard multilateralism, and do our best to promote the success of the conference.

Now, I'd like to answer some questions from the media with my colleague. Thank you.

Xi Yanchun: 

Thank you, Mr. Zhao Yingmin, for your introduction. Now, the floor is open to questions. Please identify your media outlet before raising your questions.

CCTV:

I wanted to ask what China's expectations are for the upcoming 25th Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change. What are the goals that China is trying to accomplish? Thank you. 

Zhao Yingmin:

Thanks for your questions. The 25th COP to the United Nations Framework Convention on Climate Change this year is a significant conference connecting the past and the future. Adhering to green and low-carbon development has already become a global trend. Under the current situation where multiple interconnected uncertainties threaten to impact global economic development, we should adhere to multilateralism, and resolutely stand up for the principles and framework addressing global climate change as defined in the United Nations Framework Convention on Climate Change, the Kyoto Protocol and the Paris Agreement. We should also actively fulfill our commitments, strengthen cooperation, and work together to address the challenges posed by climate change. 

We believe that this Conference aims to fulfill four main tasks.

The first is to make an effort to complete negotiations on outstanding issues concerning the implementation of the Paris Agreement. This is an important basis for the comprehensive and effective implementation of the Paris Agreement, because only after we fully complete the negotiations on the implementation of the Agreement will we usher in a new stage in our efforts to comprehensively implement it after 2020. Also, it is a matter concerning the authority and effectiveness of a multilateral mechanism. 

The second is to make progress in dealing with funding issues. The biggest problem in the current multilateral process to address climate change lies in the insufficient political will of developed countries to provide support to the process. Funds under different categories are often double counted. We hope that developed countries will provide sufficient, continuous and timely support to developing countries in a transparent and predictable manner, use public-funds and honor their commitment to provide developing countries with an annual climate fund of 100 billion dollars up to the year 2020. Based on all this, we hope we can put forward the objectives, roadmaps and schedules to strengthen their financial support to developing countries, and effectively increase the transparency of such financial support. 

The third is to review the actions taken before 2020 and the effectiveness of the actions. The international community should clarify the gaps that exist among different developed countries in emission reduction actions and financial support to developing countries before 2020. It should also make clear arrangements to bridge such gaps in a targeted manner, and ensure responsibilities are not shifted to developing countries after 2020. 

The fourth is to resolutely send out a strong political signal supporting multilateralism. Climate change is a common challenge confronting all human beings and calls for the cooperation of all countries under a multilateral framework. Therefore, efforts should be made to prevent unilateralism and protectionism from causing harm to the world's economic growth prospects. Poor economic growth could in turn weaken the international community's willingness and confidence to address climate change, and eventually undermine global efforts to deal with this problem. 

Economic Herald:

Can you tell us more about the construction of national carbon emission trading market? Are there any problems to be addressed? What about the next steps? Thank you.

Zhao Yingmin:

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

Li Gao:

Thanks, Mr. Zhao, and thank you for your questions. The construction of national carbon emission trading market has attracted widespread attention. We have made some progress in recent years, especially since the newly established Ministry of Ecology and Environment (MEE) began taking on the duties to address climate change after its restructuring. The leading Party group of the MEE places great emphasis on the work to address climate change, and is now taking the initiative to promote it.

The construction of national carbon emission trading market is very complex. It is a major institutional innovation to control and reduce greenhouse gas emissions as well as promote green and low-carbon development through a market mechanism. We drew on both the experience and lessons from international carbon markets in the past years, and also accumulated experience through piloting projects in the country. On this basis, we decided to launch a national carbon emission trading market.

Since the institutional restructuring, we have been pushing forward with the building of national carbon emission trading market at a steady pace according to the requirements specified in our construction plan. Our progress is mainly as follows:

First, in terms of institutional development, we drafted and improved interim regulations on carbon emission trading, laying a legal foundation for carbon trading. In the drafting process, we solicited opinions from the public, companies, local governments and industrial organizations. We are also working on the formulation of supporting regulations, including regulations on the reporting and management of greenhouse gas emissions by key emitters, on the verification of emissions and on the supervision of the trading market. The regulatory documents are very important for market operation.

Second, in terms of technical specification, we organized the reporting and verification of the 2018 carbon emissions and the formulation of monitoring plans. We also improved the technical plans for quota allocation in the power generation industry. In addition, we required provinces and municipalities to make a list of key emitters in the industry, thereby promoting market construction in technical terms.

Third, in terms of infrastructure construction, we invited experts to evaluate the original plan for the national registration system and carbon emission trading system. We will revise this plan according to their opinions, and then, construct the systems, which will be a large step forward in the development of national carbon market.

Fourth, in terms of capacity building, we have also made a series of efforts. After the restructuring, the MEE began taking on duties to address climate change, and local ecology and environment authorities began undertaking work on carbon trading. Considering that the authorities and power generation companies may lack relevant experience, we launched large-scale training sessions to help them in capacity building.

Despite learning from the experience of international carbon markets and pilot projects, we still find the construction complex and challenging. In particular, we are designing and operating the market when China is still seeing an increase in its carbon emissions. In that regard, our challenges are different from what the European Union or California, in the United States, faced as they were developing their carbon markets. Therefore, we need institutional innovations based on China's national conditions and realities to ensure a good start and a stable and effective operation of the carbon market.

Next, we will step up our efforts in the following important areas. We will accelerate the formulation of supporting regulations, including regulations on the reporting and management of greenhouse gas emissions by key emitters, on the verification of emissions and on the supervision of the trading market. In doing so, we aim to establish a complete regulatory system, and lay a legal foundation for market operation. Meanwhile, we will release a plan for the total amount and quota allocation of nationwide carbon emissions, a fundamental but critical document for market construction and operation. As the construction will start from the power generation industry, we will release the technical guide for quota allocation in this industry to lay a solid foundation for developing the quota allocation system. The guide has been basically formulated now. We will also speed up the construction of the registration system and the trading system, identify key emitters in the power generation industry to be included in the carbon market, open accounts in the registration and trading systems, and make other preparations to implement carbon trading in the power generation industry.

Under the leadership of the leading Party group of the MEE and the support of government departments, industries and companies, we have confidence in the steady construction, initiation and operation of the carbon market. We also believe that the market mechanism will play its role in controlling and reducing greenhouse gas emissions and achieve a more cost-efficient reduction in emissions. Thank you.

Hong Kong Cable Television:

As for some of the targets that China has pledged for 2020, it has already met the carbon emissions goals. How about the share of non-fossil fuels in primary energy consumption, is it still far from the 15 percent goal? We have also noticed that a new chapter on the health of the human body has been added in this year's report. What are the considerations for this new addition? A chapter about green and low-carbon finance introduced in the 2017 report seemed to have been removed from this year's report, or perhaps I missed it. What is the reason for that?

Zhao Yingmin:

I would like to answer your first question, and invite Mr. Li to answer the second and third ones.

The Chinese government has always paid great attention to the exploitation and utilization of clean and renewable energy resources. It has also advanced the revolution in energy production and consumption, especially the implementing of the Renewable Energy Law, and has improved plans and industrial policies for renewable energy. China constantly endeavors to promote sustainability work in the field of hydro power, maintain the sound and orderly development of wind power, and boost the healthy and orderly development of the solar energy industry. It also seeks to exploit and utilize geothermal energy, pursue the sustainable development of biomass energy, and resolve problems in absorbing clean energy.

Currently, the Standing Committee of the National People's Congress (NPC) is carrying out a series of reviews on the enforcement of the Renewable Energy Law. By the end of 2018, China's installed capacity of renewable energy reached 730 million kW, accounting for 38.3 percent of the total power capacity. The installed capacity of hydropower, wind power, photovoltaic power and biomass energy reached 350 million kW, 180 million kW, 170 million kW, and 17.81 million kW, which showed a year-on-year growth of 2.5%, 12.4%, 34% and 20.7%, respectively. All the above numbers show that China's renewable energy market has developed rapidly in recent years. 

In 2018, the power generated by renewable energy reached 1.9 trillion kWh, accounting for 26.7% of the country's total power output. Among that, hydropower generated 1.2 trillion kWh, wind power generated 366 billion kWh, photovoltaic power generated 177.5 billion kWh, and biomass energy generated 90.6 billion kWh. With the implementation of the Renewable Energy Law, the role of renewable energy in China as clean energy is increasingly apparent.

In regard to the chapter on people's health, indeed, the policies and actions to address climate change have had a profound impact on humankind. This is because climate change affects not only the natural environment, but also people's health. There is an increasing number of studies on this issue within the scientific community. The Chinese government has also attached great importance to this issue. We are now working to improve the capacity and management of our public service, making them more adaptable to climate change. We are also working to establish standards and mechanisms to enhance the monitoring, investigation and risk management of health data. In the meantime, more climate change-related research will be done to facilitate disease prevention and control, dynamic monitoring of epidemics, and studies on factors affecting them. We are working to establish emergency plans and aid mechanisms for public health incidents caused by climate change. We are working to establish early warning systems to detect heat waves and health risks. We are also working to advance research on people's health and their adaptability to climate change, and put forward health-related programs to enhance people's capacity to deal with extreme weather such as heat waves.

Climate change's impact on people's health indicates that climate change have exerted long-term impacts on a wide range of issues, which are closely related to social development and people's wellbeing. We need to make a greater effort on the research front, and we need to enhance the cooperation with the international society, thus to further enhance our actions on climate change and reduce the various adverse effects brought about by climate change. 

As for your third question, let's give the floor to Mr. Li Gao.

Li Gao:

On page 31 of "China's Policies and Actions for Addressing Climate Change (2019)," there are subheadings for two sections about developing green finance and climate investment and financing. Therefore, you can find the answer from this year's report.

Since last year, we have released a series of documents in regard to green finance. Also, in 2018, the Green Bonds Standard Committee was established by the People's Bank of China and the China Securities Regulatory Commission. It marked significant progress in this green finance. In addition, we have made important progress in climate investment and financing. First of all, during the institutional reform, the importance of the financial system in addressing climate change has been fully taken into consideration. The People's Bank of China was included as a member institute of the leading group on climate change, energy conservation and emission reduction, so as to highlight the role that the financial system and policies play to create a systematic response to climate change and for the realization of the Nationally Determined Contributions. Second, the Ministry of Ecology and Environment has built stronger connections with financial regulator, fiscal authorities and investment regulator to make polices in the respective fields more adaptable to climate change. We are working to release relevant policy documents to build synergy in policies between climate change, finance and investment, and better address this issue.

Another development worth noting is that, led by the Ministry of Ecology and Environment, the Climate Investment and Finance Association was established with the joint efforts of the People's Bank of China, China Banking and Insurance Regulatory Commission, National Development and Reform Commission and the Ministry of Finance. As a platform to promote policy research and synergy, the committee is set to make climate change policies dovetail with those on finance and investment. We hope that this association can connect the industry and finance, promoting communication between them and make finance policies more adaptable to the industry and related projects. Meanwhile, we hope that this committee can serve as a communication platform. Climate investment and finance are very popular around the world. Many international financial organizations and government bodies are interested in the development of climate investment and finance in China. Thus, we hope that the association can play a prominent role in deepening international cooperation in this area. Still, we hope that various sectors of the government can play their part and support the development of this association, so as to actively address climate change. Thank you.

China News Service:

What progress has China made in tackling climate change since 2018? What are the problems it faces? As the relevant authority to deal with climate change, what are next steps that the Ministry of Ecology and Environment is considering? Thank you.

Zhao Yingmin:

The work to deal with climate change is a very important function that has been undertaken by the Ministry of Ecology and Environment after China's institutional reform. Under the strong leadership of the CPC Central Committee and the State Council, all departments and localities have actively implemented the goals and tasks set out in the 13th Five-Year Plan for controlling greenhouse gas emissions, and the country's response to climate change has since achieved significant results. The annual report released today comprehensively reflects the specific contents of these results. There are six main aspects:

First, efforts to mitigate climate change have been comprehensively advanced. The carbon intensity reduction goal of the 13th Five-Year Plan has been continuously pursued. According to preliminary calculations, the national carbon intensity decreased by 45.8% in 2018 compared to 2005, maintaining a continuous decline. Moreover, this number has already reached the stated commitment of a 40% reduction in carbon intensity from the 2005 level, ahead of the scheduled timetable of 2020, basically reversing the rapid growth of greenhouse gas emissions. And the proportion of non-fossil energy in energy consumption reached 14.3%.

Second, the work to adapt to climate change has been carried out in an orderly way. Adaptation and mitigation work are equally important. A lot of work has been done in the areas of agriculture, water resources, forests, oceans, human health, disaster prevention and reduction to adapt to climate change and positive progress has been made. The pilot work on climate-adaptive cities has continued to deepen. China has also participated in launching the Global Commission on Adaptation to actively promote international cooperation in adapting to climate change.

Third, the system and mechanism for coping with climate change are being continuously improved. We have continuously strengthened the overall planning and coordination of our response to climate change and ecological environmental protection. In addition, we have improved the working mechanism of the leading group of climate change, energy saving and emission reduction. The leading group will generally take on the leadership role while each competent authority will be performing its own functions. Various departments will coordinate with each other and all localities will participate comprehensively. This working mechanism for tackling climate change has already taken initial shape. At present, institutional reforms and functional adjustments for tackling climate change have been completed across the country.

Fourth, the building of the carbon market has continued to advance. The carbon emissions accounting report guidelines for 24 industries as well as the 13 national standards for carbon emissions accounting have been released one after the another. The construction of relevant systems, infrastructure and capacity in the carbon market has been progressing steadily.

Fifth, China actively participates in global climate governance. In the negotiation of the implementation details of the Paris Agreement, we have proposed China's solutions and made important contributions to the success of the negotiations. Adhering to the principles of multilateralism and "common but differentiated responsibilities," China has continuously played an important and constructive role in global climate governance.

Sixth, publicity on climate change has continued to be strengthened. In this regard, I would like to thank all the friends in the media. Various departments and localities now actively carry out "National Low Carbon Day" activities. They also organize a variety of content-rich publicity activities, and inform society in a timely manner of the latest progress made in tackling climate change. Through efforts in recent years, the public's awareness towards tackling climate change is continuously increasing.

However, while seeing such progress and achievements, we are also soberly aware that as the largest developing country in the world, China has made arduous efforts to attain these goals. Let me give a few examples. For example, we have adopted strong measures such as phasing out outdated production capacity, promoting the replacement of clean energy for coal in heating, and shutting down small, poorly-managed, and heavily-polluting enterprises. We have also vigorously promoted the adjustment of China's industry and energy structures. In addition, we have promoted energy conservation, improved energy efficiency, and promoted low-carbon transformation in various places. There has been a lot of hardships and hard work put in during this process. I just told all of you that the carbon intensity in 2018 decreased by about 4% year-on-year, exceeding the annual target by 0.1 percentage point, and marking a cumulative decrease of 45.8% compared with 2005. This figure means China has reduced the carbon dioxide emissions of 5.26 billion tons, and the non-fossil energy accounts for 14.3% of total energy consumption. Therefore, it is not easy to make such achievements. It also demonstrates the Chinese government's effectiveness in promoting the green, circular and low-carbon development .

Meanwhile, the tasks facing us, including advancing economic development, improving people's living standards, eradicating poverty and pursuing better environmental governance, are huge and complicated. Despite the multitude of difficulties and challenges, we are resolved to tackle climate change with full confidence. We will stay committed to addressing climate change as we have promised to the international community. We will boost low-carbon economic transformation and pursue high-quality development.

As our next step, we will continue to deepen the implementation of ecological conservation guided by Xi Jinping's thinking on promoting ecological progress and the principles formulated at the national conference on ecological and environmental protection. We will firmly act on the decisions and deployment made in the meetings of the leading group of climate change, energy saving and emission reduction. We will stay committed to the implementation of national strategies on climate change. While upholding multilateralism, we will continue to play an active and constructive role in international negotiations. We will continue to take measures to fulfill our promises on Nationally Determined Contributions. Climate change should be taken into consideration while we make national economic and social development plans. We should intensify our control over greenhouse gas emissions, enhance our capacities of adapting to climate change, carry out South-South cooperation to address climate change, and promote green and low-carbon lifestyles to pursue continuous progress in this regard. Thank you.

Reuters:

China has promised the highest possible ambition when advising on its climate change commitments next year. Will China be making tough measures? Will it bring forward its aim to peak CO2 emissions by around 2030? China still has at least 100-gigawatt coal fire capacity under construction. Will China make any plans to restrict the number of new coal-fired plants?

Zhao Yingming:

In 2015, China submitted the Nationally Determined Contributions (NDCs) to the United Nations (UN) with a number of goals to be achieved by 2030. Those goals were confirmed through meticulous deliberations and considered along with China's recent development and actual situation. As I mentioned, these goals won't be achieved without strenuous effort. Those goals have been fixed to demonstrate that China is responsible as a major country in the world, and also reflected the country's current stage of development and actual situation. As the biggest developing country in the world, China has worked hard to address climate change even though there are challenges in many fields, such as economic development, improvement of people's livelihood, poverty alleviation and the prevention and control of pollution. Whatever the case may be, we will put in our greatest effort to fulfill our commitments.

According to the Paris Agreement, under the principles of common but differentiated responsibilities, equity and respective capacities in the light of different national circumstances, China will submit and announce its NDCs to cope with changes in works related to climate change. It will also announce its policies and measures to prepare for the implementation of NDCs. By doing so, we hope that our country can contribute to global efforts to tackle climate change. Thank you.

China Daily:

All departments are planning their work for the 14th Five-Year Plan (2021-2025) period. What plans does the Ministry of Ecology and Environment have for addressing climate change in this period?

Zhao Yingmin:

The 14th Five-Year Plan period is an essential stage in our pursuit of high-quality economic development, building of a beautiful China and implementing our intended nationally determined contributions (NDCs). The Ministry of Ecology and Environment will continue to implement proactive national strategies on climate change and include combatting climate change in the 14th Five-year Plan for Economic and Social Development as well as in the corresponding plan for environmental protection. In accordance with the requirements for pursuing high-quality economic development and building a beautiful China, we will intensify our efforts to address climate change and lay a solid foundation for achieving the objectives of the NDCs by 2030. According to national instructions, we are actively planning our work to combat climate change over the 14th Five-Year Plan period in the following aspects.

First, we will continue to take measures to mitigate greenhouse gas emissions. We will make active and prudent efforts to support and encourage actions by some regions and key industries to achieve the peaking of carbon dioxide emissions in view of their current levels of economic and social development, to develop specific goals, roadmaps and action plans. We will continue to take the reduction rate of carbon dioxide emissions per unit of GDP as a criterion, perform management on non-carbon dioxide greenhouse gas emissions and enhance greenhouse gas data management. We will also promote the integration of our work on combatting climate change, tackle pollution and protect the environment, as well as accelerate the application of low-carbon technologies and the development of low-carbon industries.

Second, we will speed up our work to establish markets for trading carbon emission rights. We plan to build an open, transparent and active national carbon market featuring sound institutions and strict regulations during the 14th Five-Year Plan period. This will ensure the smooth and effective functioning of carbon markets across the country.

Third, we will further improve the systems and mechanisms and perfect the laws and regulations addressing climate change. We will further strengthen the overall planning and coordination of the National Leading Group on Climate Change, Energy Conservation and Emissions Reduction. And we will continue to improve the working mechanisms, reinforce the coordination and cooperation between various departments and local governments, and build a stronger team of people and enhance their capabilities. 

Fourth, we will push for the construction of a global climate governance system that is fairer and more rationally structured with the aim of achieving win-win cooperation. We will proactively participate in global climate governance, uphold multilateralism, and champion the United Nations Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol, and the Paris Agreement. We will stick to the framework and principles for global climate governance that are defined by the detailed rules for the implementation of these international treaties, and adhere to the principle of fairness, "common but differentiated responsibilities" and respective capabilities so as to advance global climate governance. Also, we will step up South-South cooperation for addressing climate change and continue to do our best to provide aid and support for other developing countries. 

Fifth, we will give equal importance to the mitigation of and the adaptation to climate change, while stepping up efforts to adapt to climate change. To meet the work requirements of adapting to climate change, we plan to update the national strategy in this regard and implement the strategy with practical measures. They include pushing for actions in the areas of agriculture, water conservation, afforestation, marine environment protection, healthcare, and disaster prevention and mitigation, increasing the capabilities of climate change adaptation, and further enhancing international cooperation in this field. Thank you.

China Media Group - CRI:

We noticed that the annual report mentions "broad societal participation." So my question is: How would you plan to raise public awareness of climate change and encourage the participation of the general public? And what is your opinion on young people taking part in action to address climate change? Thank you.

Zhao Yingmin:

To address climate change, we need the proactive participation of the entire society, especially for the society to form a green, low-carbon lifestyle. The Chinese government attaches significant importance to raising public awareness for addressing climate change. We proactively promote education on the issues and advocate a green, low-carbon lifestyle, and we encourage participation of the general public. The Low-carbon Day campaign that we organize annually is a nice touch to reach out to the public. Taking on different themes each year, the campaign encourages actions to be taken at various regions, sectors, schools, and communities to practice a low-carbon lifestyle. At the same time, different sectors are organizing publicity campaigns in various forms with distinctive features. The media also give a lot of attention to this subject and provide it with massive coverage. With the collaboration of all parties, the public awareness of climate change has been raised gradually, and more and more people are paying attention to the issues. 

Meanwhile, young people are the key to both the present and the future of sustainable development. The aim for us to proactively address climate change is to protect the natural environment for the future generations to enjoy and for them to maintain sustainable development. The present situation of climate change casts a profound impact on us and the next generation, therefore, we hope young people would take notice of relevant issues. We encourage the broad participation of young people in the National Low-carbon Day campaign and other events. We also wish young people would continue to study and acquire more knowledge and skills for addressing climate change, be well prepared, and take practical actions on their own to reduce greenhouse gas emissions, in order to contribute to the global efforts for addressing climate change. Thank you.

Xi Yanchun:

Thank you two for presenting the report, and thank you all for coming. This press conference now concluded. 

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Read in Chinese

Speaker:

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

Chairperson:

Shou Xiaoli, Press Bureau of the State Council Information Office (SCIO)

Date:

Oct. 18, 2019

Shou Xiaoli, Press Bureau of the SCIO:

Ladies and gentlemen, good morning. Welcome to this SCIO press conference where we are releasing China's economic data. We are pleased to welcome Mr. Mao Shengyong, spokesperson of the NBS and director general of the Department of Comprehensive Statistics at the NBS, to introduce details of the economic performance in the first three quarters of 2019 and answer some of your questions.

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

Mao Shengyong:

Thank you. Ladies, gentlemen, and media friends, good morning. I'll first give you a brief introduction of China's economic performance in the first three quarters of 2019, and then answer some of your questions.

The national economy maintained overall stability and made steady progress in restructuring in the first three quarters of 2019.

Faced with mounting risks and challenges both at home and abroad, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at the core, all regions and departments implemented the decisions and arrangements made by the CPC Central Committee and the State Council, adhered to the general working guideline of making progress while maintaining stability, insisted on following the new development philosophy, continued to deepen supply-side structural reform, strengthened counter-cyclical adjustment, endeavored to maintain stability in such areas as employment, the financial sector, foreign trade, foreign investment, domestic investment and market expectations, and spared no effort to implement various policies in an effective way. As a result, the national economy maintained overall stability, with an optimized economic structure and improving living standards.

According to preliminary estimates, the gross domestic product (GDP) was 69.78 trillion yuan (about US$9.87 trillion) in the first three quarters, an increase of 6.2% at comparable prices year on year. Specifically, the growth rate was 6.4% in the first quarter, 6.2% in the second and 6% in the third. The added value achieved by the primary industry was 4.3 trillion yuan, up 2.9%; the secondary industry 27.79 trillion yuan, up 5.6%; and the tertiary industry 37.69 trillion yuan, up 7%.

1. Agricultural production enjoyed sound growth with autumn grain expecting a good harvest.

The total output of summer grain and early rice totaled 168.01 million metric tons, a year-on-year increase of 606,000 metric tons. The autumn grain has been growing well and another good harvest is expected. Total grain output in 2019 is expected to be above 650 million metric tons and achieve an increase in production. In the first three quarters, the added value of crop farming grew 4.3% year on year. The planting structure was further optimized. The sown area of quality rice and soybean was increased, while that of corn was reduced. In the first three quarters, the output of eggs grew 5.5% year on year and that of milk 2.5%. The total output of pork, beef, mutton and poultry was 55.08 million metric tons, down 8.3% year on year. Specifically, the output of poultry, beef and mutton was 15.39 million metric tons, 4.58 million metric tons, and 3.3 million metric tons respectively, representing gains of 10.2%, 3.2% and 2.3%. Pork output was 31.81 million metric tons, down 17.2%.

2. Industrial production sustained growth with the proportion of high-tech manufacturing increasing.

The total added value of industrial enterprises above designated size grew 5.6% year on year in the first three quarters. An analysis by types of ownership showed that State-holding enterprises achieved growth of 4.7% year on year; that of shareholding enterprises was up 6.9%; and that of enterprises funded by foreign investors and investors from Hong Kong, Macao and Taiwan grew 1.4%. In terms of sectors, mining grew 4.6% year on year, manufacturing increased 5.9% and the production and supply of electricity, thermal power, gas and water increased 7%. The added value of strategic emerging industries grew 8.4% year on year, 2.8 percentage points higher than industrial enterprises above designated size. That of high-tech manufacturing grew 8.7% year on year, 3.1 percentage points higher than industrial enterprises above designated size, accounting for 14.1% of that achieved by industrial enterprises above designated size, which was 0.3 percentage point higher than the first half of 2019. The output of solar cells and new energy automobiles grew 25.1% and 21.4% respectively year on year. In September, the total added value of industrial enterprises above designated size rose 5.8% year on year, 1.4 percentage points higher than that of August, or up 0.72% month on month.

In the first eight months, the profits made by industrial enterprises above designated size stood at 4.02 trillion yuan, down 1.7% year on year, the same figure as that of the first seven months. The profit margin of industrial enterprises above designated size was 5.87%, the same as that achieved in the first seven months.

3. The service sector continued to show fast growth with modern services maintaining good momentum of development.

In the first three quarters, the service sector continued to maintain good growth momentum. The added value of information transmission, software and information technology services, leasing and business services, transport, storage and postal services, and financial intermediary services grew 19.8%, 8%, 7.4% and 7.1% respectively year on year. These figures were 12.8 percentage points, 1 percentage point, 0.4 percentage point and 0.1 percentage point higher than the level achieved by the tertiary sector as a whole. The Index of Services Production increased 7% year on year. Specifically, the Index of Services Production in September grew 6.7%, or 0.3 percentage point higher than that of August. In September, the business activity index for services stood at 53%, 0.5 percentage point higher than August. The business expectation index for services was 59.3%, thus remaining at a high level.

In the first eight months, the business revenue of service enterprises above designated size increased 9.5% year on year, 0.1 percentage point lower than in the first seven months. Specifically, the business revenue of strategic emerging services, high-tech and technology services grew 12.1%, 11.9% and 11.6% respectively year on year, 2.6 percentage points, 2.4 percentage points, and 2.1 percentage points higher than service enterprises above designated size, thus maintaining a pattern of fast growth.

4. Market sales witnessed steady growth with fast sales of upgraded consumer goods.

In the first three quarters, the total retail sales of consumer goods reached 29.67 trillion yuan, a year-on-year gain of 8.2%. Retail sales of consumer goods excluding automobiles grew 9.1%. Retail sales in urban areas reached 25.35 trillion yuan, up 8% year on year; sales in rural areas stood at 4.32 trillion yuan, up 9%. Grouped by consumption patterns, the income of the catering industry was 3.26 trillion yuan, up 9.4%; the retail sales of goods totaled 26.41 trillion yuan, up 8%. 

The sale of upgraded consumer goods witnessed fast growth. In the first three quarters, retail sales of smart household appliances and audio-video equipment, as well as wearable smart devices, by enterprises above designated size grew 41.6% and 11.1% respectively year on year. In the first three quarters, national per capita consumption expenditure of households was calculated at 15,464 yuan, a year-on-year growth of 8.3%. Specifically, the per capita consumption expenditure on services grew 10.2%, 1.9 percentage points higher than the overall figure for per capita consumption expenditure. In September, total retail sales of consumer goods reached 3.45 trillion yuan, a year-on-year rise of 7.8%, 0.3 percentage point higher than August.

In the first three quarters, online retail sales reached 7.32 trillion yuan, a year-on-year growth of 16.8%. Specifically, the online retail sales of physical goods reached 5.78 trillion yuan, an increase of 20.5%, accounting for 19.5% of total consumer goods sales.

5. Investment maintained stable growth and investment in high-tech industries grew fast.

In the first three quarters, investment in fixed assets (excluding rural households) was 46.12 trillion yuan, a year-on-year growth of 5.4%. Specifically, private investment reached 26.48 trillion yuan, up 4.7%. Investment in the primary industry dropped 2.1%; the secondary industry up 2%, of which, manufacturing increased 2.5%; the tertiary industry up 7.2%, of which, infrastructure grew 4.5%. Investment in high-tech manufacturing grew 12.6% year on year, 7.2 percentage points higher than that achieved in total investment; investment in high-tech services grew 13.8%, 8.4 percentage points higher than that of total investment.

In the first three quarters, total investment in real estate development was 9.8 trillion yuan, a year-on-year growth of 10.5%. The floor space of commercial buildings sold was 1.19 billion square meters, down 0.1% year on year. The total sales of commercial buildings stood at 11.15 trillion yuan, up 7.1%.

6. Imports and exports scaled up and the trade structure continued to optimize.

The total value of imports and exports of goods in the first three quarters was 22.91 trillion yuan, a year-on-year increase of 2.8%. Specifically, the total value of exports was 12.48 trillion yuan, up 5.2%; total value of imports was 10.43 trillion yuan, down 0.1%. The trade balance was 2.05 trillion yuan in surplus, a year-on-year growth of 44.2%. 

The trade structure was further optimized. The imports and exports of general trade grew 4.8%, accounting for 59.5% of the total value, 1.1 percentage points higher than that of the same period last year; the export of mechanical and electrical products grew 4.7%, accounting for 58.1% of the total export value. The imports and exports by private enterprises grew 10.4%, accounting for 42.3% of total value, 2.9 percentage points higher than the same period last year. In September, the total value of imports and exports was 2.78 trillion yuan, down 3.3% year on year. Of this total, the value of exports was 1.53 trillion yuan, down 0.7%; and that of imports was 1.25 trillion yuan, down 6.2%. In the first three quarters, the export delivery value of industrial enterprises above designated size reached 9.09 trillion yuan, up 2.4% year on year.

7. Growth of consumer price increased and the producer prices for industrial products maintained the same level year on year.

In the first three quarters, the consumer price index rose 2.5% year on year. Specifically, there was a gain of 2.4% in urban areas and 2.6% in rural areas. Grouped by commodity categories, prices for food, tobacco and alcohol rose 5.1% year on year; clothing 1.8%; housing 1.7%; articles and services for daily use 1%. Prices for transportation and communication services fell 1.5%; education, culture and recreation rose 2.4%; medical services and health care up 2.5%; other articles and services grew 3%. In terms of food, tobacco and alcohol prices, grain prices went up 0.5%, pork up 21.3%, and fresh vegetables up 5.1%. The core CPI excluding the price of food and energy rose 1.7% year on year, 0.1 percentage point lower than that of the first half of 2019. In September, the consumer price index was 3% higher year on year, 0.2 percentage point higher than August, or up 0.9% month on month.

The producer prices for industrial products in the first three quarters remained at the same level year on year. The producer prices for industrial products in September were down 1.2% year on year, or up 0.1% month on month. In the first three quarters, the purchase prices for industrial products dropped 0.3% year on year. In September, the figure was down 1.7% year on year, but up 0.2% month on month.

8. Employment was generally stable and rural migrant workers increased.

In the first three quarters, newly increased employed people in urban areas totaled 10.97 million, accounting for 99.7% of the year's target. In September, the surveyed unemployment rate in urban areas was 5.2%, the same as the previous month. Specifically, the surveyed unemployment rate of population aged from 25 to 59 was 4.6%, 0.6 percentage point lower than the surveyed unemployment rate in urban areas. The urban surveyed unemployment rate in 31 major cities was 5.2%, the same as the previous month. In September, employees of enterprises worked an average of 46.7 hours per week. At the end of the third quarter, the number of rural migrant workers reached 183.36 million, 2.01 million more than the same period last year, and up 1.1%.

9. Resident income rose basically in step with economic growth and the income growth of rural residents outpaced that of urban residents.

In the first three quarters, the nationwide per capita disposable income was 22,882 yuan, a nominal growth of 8.8% year on year, or a real growth of 6.1% after deducting price factors, basically in step with economic growth. In terms of permanent residence, the per capita disposable income of urban households was 31,939 yuan, a real growth of 5.4%. The per capita disposable income of rural households was 11,622 yuan, up 6.4% in real terms. The per capita disposable income of urban households was 2.75 times that of rural households, 0.03 less than the same period last year. The median level of nationwide per capita disposable income was 19,882 yuan, a nominal increase of 9% year on year.

10. Key reforms achieved solid progress and the economic structure was adjusted and optimized.

Supply-side structural reform continued to deepen. In the third quarter, the industrial capacity utilization rate nationwide reached 76.4%, the same as that of the second quarter. Specifically, the capacity utilization rates of both the manufacture of computers, communications and other electronic equipment and the manufacture of raw chemical materials and chemical products were 1.1 percentage points higher than the second quarter. By the end of September, the floor space of commercial buildings for sale was 493.46 million square meters, 4.38 million square meters less than a month earlier, and down 7.2% compared with the same period last year. The asset-liability ratio of industrial enterprises above designated size at the end of August stood at 56.8%, 0.5 percentage point lower than the same period last year. In the first three quarters, investment in weak areas like ecological protection and treatment of environment pollution and education grew 40% and 18.5% respectively year on year, which was 34.6 percentage points and 13.1 percentage points higher than that of overall investment.

Solid efforts were made to advance the "three critical battles" of preventing and defusing financial risks, conducting targeted poverty eradication and controlling pollution. At the end of August, the balance of local government debt stood at 21.41 trillion yuan, which was within the limit approved by the National People's Congress. Efforts on targeted poverty eradication were enhanced and more effects were delivered, with the per capita disposable income for rural households in impoverished areas maintaining fast growth. The work of pollution prevention and control was continuously advanced. According to preliminary estimates, in the first three quarters, the share of consumption of clean energy such as natural gas, hydropower, nuclear power and wind power in total energy consumption was 1.2 percentage points higher than the same period last year. The energy consumption per unit GDP went down 2.7% year on year.

The economic structure was adjusted and optimized. In the first three quarters, the added value achieved by the tertiary sector accounted for 54% of GDP — 0.6 percentage point higher than last year, and 14.2 percentage points higher than that of the secondary industry — contributing 60.6% to GDP growth, 24.3 percentage points higher than the secondary industry. Of industrial enterprises above designated size, strategic emerging industries and high-tech industries maintained fast growth. The contribution of final consumption expenditure to GDP growth was 60.5%. Service consumption took up 50.6% of households' final consumption expenditure, 0.7 percentage point higher than the same period last year. Steady progress was recorded in implementing major regional development strategies and a new pattern of coordinated and integrated regional development is taking shape.

Generally speaking, the national economy maintained overall stability in the first three quarters. However, we must be aware that given the complicated and severe economic conditions both at home and abroad, slowing global economic growth, and increasing external instability and uncertainties, the economy is under mounting downward pressure. In the next stage, under the guidance of the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we should heighten the sense of urgency and responsibility, focus on running our own affairs well, take development as the top priority, and place stable growth and reasonable range of economic development in a more prominent position. We should seek impetus from reform and opening up as well as innovation, tap the potential by expanding domestic market demands, foster new effective investment and consumer demands to improve living standards, boost the resilience of development, withstand downward pressures, and take coordinated steps to achieve steady growth, advance reform, make structural adjustments, improve living standards, guard against risks and maintain stability, so as to facilitate sustained and sound economic development. Thank you.

Shou Xiaoli:

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

CCTV:

We notice that the economic growth rate further slowed down during the first three quarters of this year. Does that mean the economy is under greater downward pressure? How do you analyze the current economic conditions?

Mao Shengyong:

Thank you for your question. Since the beginning of this year, the world economy and international trade have both seen slower growth and, so, the Chinese economy has been under mounting downward pressure. The CPC Central Committee issued a series of policies for counter-cyclical adjustment in a timely manner to enable the economy to better withstand such pressure. The key economic indicators in the first three quarters show the economy has maintained overall stability. I will analyze the current economic condition from the following perspectives:

First, although there was slower growth in the domestic economy, the growth rate is still leading the world. The GDP grew 6.2% in the first three quarters, only 0.1 percentage points slower than the first half of the year. It is estimated the growth rate should be the fastest among all economies with a size of more than $1 trillion. The growth may be slower compared to our growth in previous years, however, it is still a high rate globally. 

Second, key macroeconomic indicators remain in a proper range in spite of downward pressures. In September, the surveyed unemployment rate in urban areas was 5.2%, the same as the previous month.In the first three quarters, employment was generally stable and the number of newly-employed people in urban areas almost met the whole-year target. The growth of consumer price increased in September to 3.0%. However, the core CPI excluding the prices of food and energy went up by 1.5%, which was slightly lower than that of previous months. In the first three quarters, the consumer price registered a modest increase of 2.5% year-on-year.During the same period, nationwide per capita disposable income registered real growth of 6.1% after deducting price factors, almost equal to the economic growth and faster than the growth of per capita GDP. Even the 8.8% nominal growth in per capita disposable income was relatively good. The energy consumption continued to fall during the first three quarters, while the production and utilization proportion of clean energy sources continue to rise.

Third, although there are external uncertainties, there are more certainties domestically which will play their due role in driving the economy.

For example, the service sector is playing a bigger role in driving economic growth. In the first three quarters, its value-added growth was 7% and consumption of services registered a relatively high growth of over 10%, which will drive the overall advance of the service sector and increasingly consolidate its stabilizing role.

Meanwhile, the potential for consumption is being unleashed. The contribution of final consumption expenditure to GDP growth was more than 60% in the first three quarters. The fundamental role of consumption in driving the economy will be strengthened with personal income increasing, the consumption environment continuing to improve, social security being enhanced and the supply capacity being strengthened. 

In addition, China's economic structure continues to upgrade. In September, in industrial enterprises above designated size, the added value of high-tech industries grew by 11% year-on-year, 4.9 percentage points higher than the previous month; the added value of strategic emerging industries grew by over 9%. Investments in areas of weakness and high-tech industries maintained rapid growth. From January to September, investments in high-tech industries and in the social domain both maintained growth above 13%.

Lastly, policies continue to have their desired effect. A batch of policies on cutting taxes and fees have been issued this year. The issuance of special bonds by local governments have been increased and the issuance process quickened. All those policies continue to take effect. The investment in infrastructure has rebounded in recent months. The financial sector is increasing its support for the real economy and facilitating a lowering of real interest rates. Some of the policies have delivered desired results and others will continue to take effect in the future.

Generally speaking, in spite of stern external environment, favorable domestic factors will ensure a stable economic performance in the near future. Thank you.

South China Morning Post:

The latest data shows GDP growth in the third quarter slowed down to 6% from a year earlier. Will it continue to slow down, falling below 6% in the fourth quarter? How would you analyze it? Thank you.

Mao Shengyong:

Thanks for your question. As the GDP growth in the third quarter was lower than that in the second, people will naturally be paying close attention to the figure in the next quarter. It is highly possible that the global economy will continue slowing down in the next stage as I said just now, as some leading indicators and forecasts from international agencies are not that optimistic. Despite this, if we look beneath the surface, there are lots of favorable factors supporting China's economy in the fourth quarter, with some recent indicators showing such encouraging signs and new changes. For example, growth of the manufacturing PMI accelerated in September, as reflected in the new orders index and the production index. Investment in infrastructure has picked up in the last two months. The PPI figures rose both in August and September compared with the previous month, despite declining year-on-year. The production and sales of automobiles, which has a large impact on the total production and sales, showed a narrowing decline in the recent two months. Those are all good signals, and, given the relatively low base in the last fourth quarter, I think the economy will remain stable. Thank you.

Bloomberg:

I have three questions. First, the data just now released shows that consumer spending contributed 60.5% to the GDP growth. How much did investment and imports and exports contribute? Second, as just mentioned, the growth of per capita disposable income is basically in line with the overall economic growth, but not faster than it. Then, will it be more difficult to shift from investment-driven growth to being driven by consumer spending? The third question is about investment in infrastructure. As mentioned, the local governments' special bonds have almost been used up. Will the investment in infrastructure slow down in the fourth quarter?

Mao Shengyong:

Thank you for the three questions. The first is about the contribution rate of the three major demands to the GDP growth. In the first three quarters of this year, final consumer spending contributed 60.5%, capital formation 19.8% and net exports of goods and services 19.6%. Those should add up to 100%, but the rounding-off leads to some nuance.

On your second question, per capita disposable income grew by 6.1% in real terms in the first three quarters, basically keeping pace with the 6.2% overall economic growth. If you look at per capita figures, disposable income grew faster than GDP growth. In terms of nominal growth, we saw a satisfactory rise of per capita disposable income by 8.8% in the first three quarters. As for whether we are able to shift from investment-driven growth to that driven by consumer spending, we have already made considerable progress in recent years in adjusting the pattern of economic development. Our economy has relied more on domestic demand gradually, in which consumer spending played an increasingly fundamental role. The process is on the go. In addition, there is also a shift of effort from expanding the scale of production factors to increasing total factor productivity with technological progress. Those facts show that China's economy is undergoing an obvious transformation and upgrading.

Your third question is whether there is a basis for the investment in infrastructure to rebound in the fourth quarter. There are several ways of expanding infrastructure investment. On the one hand, we increased the size of local governments' special bond issuance this year, and allocated some funds ahead of schedule. We are preparing to allocate some of the next year's inputs within this year. At the same time, we should encourage private capital to become more engaged. Overall, there is a good trend for us to see a rebounding infrastructure investment. Thank you.

Economic Daily:

In the first three quarters, investment in manufacturing witnessed a 2.5% increase year-on-year, which shows the slowdown continued in general. Does that mean the real economy is facing some difficulties? Is there any room for future investment growth?

Mao shengyong:

Thanks for your question. It's a common concern. The development of investment in the first three quarters has the following characteristics. First, investment growth was generally stable. From January to September, the growth rate of fixed-asset investment (excluding rural households) reached 5.4%, or 0.1 percentage point slower than the rate from January to August, but unchanged from the same period of last year. As the investment scale is continuously expanding, the growth rate has faced a slowdown in recent years, but still remains generally stable. Second, the investment structure continued to be optimized. From January to September, investment in the tertiary industry grew at a fast rate of 7.2%. Meanwhile, investment in high-tech industries and social sectors grew at a rate of 13% or above, which is beneficial for us to shore up areas of weakness and make development more sustainable. Third, the growth rate of investment in manufacturing, including private investment, has slowed, which shows the real economy is currently facing some difficulties. We will intensify efforts to implement the central government's policies, further improve the business environment, strengthen the protection of intellectual property rights and advance financing support, so as to boost the real economy and development of private and medium- and small-sized enterprises.

For your second question, I believe there is great potential for future investment growth. In economics, consumption equals final demand, which needs supply; supply calls for investment, which is also called "derived demand". Thus, investment is linked to demand on one side, and to supply on the other. We cannot simply see investment as consumption, because it is not only an important variable of consumption, but also an important part of supply. For example, when we increase investment in infrastructure and public services, it concerns not only investment increase, but expansion of consumption and improvement of people's living standards. When a company expands investment in reproduction, it can increase supply capacity and improve the supply level. If enterprises increase investment in equipment renewal and technology transformation, it can improve the quality and level of the supply system, and drive technological progress. From this perspective, to increase effective investment can not only expand demand, but also improve the level and quality of supply, optimize the supply structure, promote technological progress and boost transformation and upgrading. Therefore, whether it is from the demand or supply perspective, there is great potential and large room for expansion of domestic investment.

Market News International:

I have two questions. First, we have noticed that, in September, the value-added growth rate of the industrial sector was 1.4 percentage points higher than August. Was that a sign of recovery? What was the reason behind the growth? My second question is: what's your view on the pork price and its development trend? Will this factor restrain the country's monetary policy? And there is one more question. Currently, the trade tension between China and the United States seems to be eased a little bit. What's your view on its influence on China's trade and domestic consumption in Q4?

Mao Shengyong:

Your first question is about the growth rate of the industrial sector. In the first nine months, the value-added growth rate of industrial enterprises above designated size was 5.6%, nearly the same with the figure achieved in the first eight months. Specifically, the figure in September was 1.4 percentage points higher than August. There were several reasons for the increase. First, when calculating the increase, the figure of last September was relatively low. Second, since September was the end of the quarter, some enterprises decided to accelerate their production. Third, due to market expectations, some enterprises had a stronger will to expand production. In the future, there will be both downward pressure and conducive factors for growth, leaving the growth rate of the industrial sector basically unchanged.

Your second question is about the pork price, CPI and the impact on monetary policy. In the recent months, the CPI grew at a relatively faster rate. In September, it increased 3.0% year-on-year, and food price increased even faster. About 70% of the increase of CPI came from the food sector. To be specific, the pork price increase was the main driver, as it rose almost 70%. Taking a broader view, the pork price drove up CPI by 1.65 percentage points, accounting 55% of the total growth rate. 

How to understand pork price's impact on CPI? The CPI had been rising at a faster speed, but this was mainly because of structural factors. The increase was mainly caused by the price rise of pork and some other food products. If we take a look at the core CPI, the figure only rose 1.5% in September, and 2.5% on average in the first nine months. The rise was mild. Therefore, the growth of CPI in September was caused by the price rise of some food products, pork in particular. 

In the next stage, the supply of industrial goods will be adequate, leaving their prices basically stable, and service products will see a mild price rise. As for the food sector, since a bumper harvest is expected, prices will remain basically stable. Regarding pork, since the African swine fever has been brought under control, and the previous policies launched by the central and local governments have shown significant effect, the problems concerning the supply and demand of pork will gradually be solved, and pork price will be return to a normal range. 

Regarding consumer price, some people were worried if there would be inflation, because the price rise approached 3%, while some others felt there was actually a deflationary trend, because the core CPI, with the price of food and energy excluded, actually rose at a slower rate from the first half of this year, and the PPI even dropped down year-on-year. In fact, there was neither inflation nor deflation, and the price level was basically stable. Therefore, there is adequate room to launch monetary policies, and the authorities will devise policies in accordance with the real situation.

Now, I'll answer the question about China-U.S. trade friction. Recently, substantial progress was achieved in the negotiations. This is good news. It will leave a positive influence on the two countries, and will send a positive message to the world. The global economy and international trade are developing towards a direction of less protectionism and more openness. The global economy, including that of China, will see better development.

Reuters:

My question is about employment. Although economic growth fell to 6.0% in the third quarter, there was no obvious increase in the survey-based unemployment rate, which was 5.2% in September, slightly lower than July. Can you explain why?

Mao Shengyong:

In general, employment and economic growth are highly correlated. Why did the economic growth slow down, while the employment situation remained generally stable? This question can be answered from several perspectives.

First, despite a slight slowdown, the economic growth rate remained relatively good from a global perspective. In addition, with the growth in size, the economic increment brought about by every one percentage point increase is also growing. And with the growth of economic increment, the number of job opportunities able to be absorbed is also growing.

Second, there is also a close relationship between the employment situation and the change of industrial structures. As mentioned before, the service industry has maintained relatively rapid growth, and the proportion of added value of the sector in GDP continues to increase. The sector as a whole is like a reservoir of employment. With such an industrial structure, the capacity to absorb employment is constantly increasing. In other words, the employment elasticity of economic growth has increased, which is another important reason.

Third, the government has launched a series of active employment policies. For example, we have advanced business startups and innovation initiatives as well as other more flexible approaches to create new jobs. We have paid particular attention to the employment of key groups, for example, by increasing professional training. Such a series of policies have achieved good results.

Fourth, new industries, sectors and business models are continuously emerging and growing, which also helps provide more job opportunities.

Based on these factors, although our economic growth has slowed down slightly, the overall employment situation remains stable. However, we should also be aware of some structural contradictions. For example, the survey-based urban unemployment rate is relatively stable, but there are still some areas where the unemployment rate is relatively high; the unemployment rate for young people is higher than the overall unemployment rate, and it is relatively difficult for college graduates to find jobs. The current structural contradiction is that, on the one hand, it is difficult for enterprises to recruit workers; on the other hand, it is difficult for some college graduates to find jobs. In general, the employment market is relatively stable, but we should continue to pay close attention to structural contradictions.

Thank you.

CNR: 

Mr. Mao just mentioned that the pork price has been on the rise this year. China has stepped up efforts to guarantee pork supply. You said more time is needed to control the price. Will the price be steady in the next few months? And analysts have said there is an adjustment in the proportion of pork in the CPI when the National Bureau of Statistics was calculating it. Is that true? Thank you.

Mao Shengyong:

Both of your questions are about the CPI. The growth of pork price in September fell on a month-over-month basis, but grew year-on-year. In the next stage, with further implementation of various policies, the supply of pork will increase, and the current tense situation will ease. The pork price should be back to normal in a few months after adjustment.

Your second question is more professional. I would like to take this opportunity to give you some introductions about it. Over the years of development, the price survey system of NBS has grown relatively mature. The collection and compilation of the price index are in line with international standards and recognized by international counterparts. The method we use to calculate the price index is the Chain-type Laspeyres Formula, which is in line with international standards. So how to calculate CPI? We need to know how the price of goods and services are changing. However, we can only select representative ones to observe, which we call the "basket". As these representative ones may change over time, we need to select new goods or services to be included in the "basket" on a regular basis. We also need to identify the portion of the different parts in the "basket".

How often should we change the components of the "basket"? Every five years, we undertake this change, such as in a year ending in 0 or 5. This is also in line with international standards. For example, the current CPI is based in 2015. We need to choose the representative goods and services. And this is conducted in strict accordance with the information provided by households. Once the content and number of the goods and services are identified, we need to check the variation of them in the "basket". And every part has its own proportion. So, how to make sure this is right? For example, to know the CPI, we should know how much the purchase of pork took up in total expenditure. We calculate it with the real data of expenditure, and no one will change the number on purpose, but indeed, it will change from month to month.

Fluctuations in the price changes basically reflect the characteristics and trends of the change. The data we calculated is more like a complex index. It reflects the general performance of business entities and general situation of business activities in the whole society. Meanwhile, different groups or individuals, of course, may feel the differences more acutely. Though the pork price grew sharply, the proportion of total expenditure is only some 2%. Meanwhile, there are industrial products, food and other services, which are accounting for over 90% of the total, and registered rise or decline. We put all of these together to calculate. Therefore, in September, the consumer price went up by 3% year-on-year. Thank you.

China Business Network:

In the first three quarters, the total investment in real estate development achieved year-on-year growth of 10.5%. Do you think this double-digit growth can be sustained? What's your opinion on real estate's contribution to economic growth? Thank you.

Mao Shengyong:

In regard to your first question about the real estate market, we have reinforced the principle that houses are for living in, not for speculation. Currently, housing prices are stable; and the growth of investment in real estate market from January to September has been kept basically above 10%, which means stability. Meanwhile, real estate sales have slightly decreased. Based on these indicators, we can say we have maintained general stability in the real estate market. This is also the case in regard to land sales.

As for real estate's contribution to economic growth, similarly, housing demand should not be speculative and investment-driven. Real estate will not be used as a short-term stimulus for economic growth. The sector's development is generally stable, healthy, and orderly.

Financial Times:

Just now it has been mentioned that China will issue special bonds to support infrastructure projects. Based on our understanding, the requirement of special bonds is that the revenue should match the capacity of debt repayment. As many local governments insist there is a lack of profitable infrastructure projects, how will this influence their development?

Mao Shengyong:

This issue can be better addressed by my colleagues of the Ministry of Finance or other government bodies. However, I will answer it based on my own understanding.

Last year, China issued 1.35 trillion yuan of local government special bonds. The figure this year has been raised to 2.15 trillion yuan, and our work in this field has basically concluded. Next, these special bonds need to be implemented on specific projects. During the issuing process, the central government and other government bodies consider local governments' capacity of debt repayment, and a categorized management system has been established regarding the amount of special bonds issued. For example, a local government with a higher debt level will receive only a comparatively small amount of special bonds; meanwhile those with stronger capacity in debt repayment, huge potential and a high level of development, as well as promising investment future, will be issued a much larger amount. We hope special bonds can function as the guide for private capital to improve the development of infrastructure. Thank you.

ET Net:

Mr. Mao mentioned earlier that the decrease in vehicle purchases is slowing. Although the limitation on vehicle purchases has been lifted and purchase encouraged, overall sales remain sluggish. What's your opinion on this? Which areas of demand will experience further growth in the future? Thank you.

Mao Shengyong:

The overall consumer market is actually not sluggish, as consumption has continued to grow. In the first three quarters, the total retail sales of consumer goods achieved a year-on-year rise of 8.2%. Excluding automobiles, it actually grew by more than 9%. However, total retail sales of consumer goods only cover a fairly small number of service categories; if all kinds of services were included, there would be a double-digit increase based on our calculation. In terms of consumer spending, the per capita rate in regard to services also registered an increase of more than 10%. The proportion of consumption expenditure on services in the first three quarters in 2019 accounts for more than 50% of total spending. Therefore, if the consumption of goods and services were considered as a whole, the growth would reach more than 9%, which is rather optimistic.

Regarding automobiles, since last May, production and sales appear to have slowed. This phenomenon occurred in many other countries, as well. In terms of vehicle ownership, China still has room and potential to grow. As for the policy adjustment you've mentioned, there have been some shifts in some cities, and this can only enhance the huge developing potential. For example, we have accelerated the transfer of vehicles in the second-hand market. We have been gradually lifting the limitational policies at local government level, and boosting the market of new vehicle purchases by promoting that of second-hand ones. In general, vehicle purchases in China still have room to grow, and the overall consumption will maintain a positive trend. Thank you.

Shou Xiaoli:

Thank you, Mr. Mao, and friends from the media. Today's press conference is hereby concluded.

.

Read in Chinese

Speakers:

Zhang Wufeng, a member of the Party Leadership Group of the National Development and Reform Commission, head of the National Food and Strategic Reserves Administration

Su Wei, deputy secretary general of the National Development and Reform Commission

Huang Wei, deputy head of the National Food and Strategic Reserves Administration

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

Oct. 14, 2019

Hu Kaihong: 

Ladies and gentlemen, friends from the media, good afternoon. Welcome to this conference. Today, the State Council Information Office (SCIO) launched the white paper titled "Food Security in China," and is holding this press conference to brief you on its main content and its details.

With us here today are: Mr. Zhang Wufeng, a member of the Party Leadership Group of the National Development and Reform Commission and head of the National Food and Strategic Reserves Administration; Mr. Su Wei, deputy secretary general of the National Development and Reform Commission; and Mr. Huang Wei, deputy head of the National Food and Strategic Reserves Administration. I'm the SCIO spokesperson Hu Kaihong. I'll host the conference today.

First, I'd like to make a brief introduction to the main content of the white paper. "Food Security in China" is the second white paper on the country's food security issue that the Chinese government launched after the "China Food Issue" released in 1996. It gives us a full picture of the historic achievements and transformation that China has made in the food security field after the founding of the People's Republic of China in 1949, especially after the 18th National Congress of the Communist Party of China (CPC) in 2012. It makes a comprehensive introduction to China's philosophies and practices relating to implementing the country's food security strategy and promoting the high-quality development of the grain industry. It demonstrates China's determination to maintain world food security, and build a community with a shared future for mankind. The white paper contains approximately 12,000 words, and comprises the preamble, the main content, and the conclusion.

Since the founding of the People's Republic of China (PRC) in 1949, China has always prioritized food security in state governance. The white paper uses various data and facts to prove that over the past 70 years, despite a weak agricultural foundation and extreme poverty, the Communist Party of China (CPC) has led an unremitting campaign of hard work, making China basically self-sufficient in its food supply. The country now has enough food to feed its nearly 1.4 billion population, and has remarkably improved the people's nutrition and quality of life. China's food security is a success of worldwide significance.

Since the CPC's 18th National Congress in 2012, the CPC Central Committee with Comrade Xi Jinping at its core has treated food security as a top state issue. The central leadership has introduced a food security policy of "ensuring basic self-sufficiency of grain and absolute security of staple foods." The white paper points out that based on its own national conditions and food availability, China has embarked on a road to establishing food security in its own way by implementing the concepts of being innovative, coordinated, green, open, and inclusive development, the requirements of high-quality development, and a national food security strategy for a new era.

Food security is an essential guarantee for world peace and development, an important foundation for a global community of shared future, and an influential factor for the development and future of humanity. The white paper points out that as the world's largest developing country, and a major country that shoulders its responsibilities, China has always been a positive force in safeguarding world food security. China has been an active promoter of free trade. It has worked hard to fulfill its commitments to the World Trade Organization (WTO), and shares China's food market resources to facilitate world food trade. By expanding international cooperation in food and agriculture actively, participating in global food security governance, China has made an important contribution to the healthy development of the world food industry and food security.

In the last part, the white paper stresses that in the future, under the principle of openness, inclusiveness, equality, mutual benefit, and win-win cooperation, China will be embracing a new situation of opening up with regard to food issues. In pursuit of common development, China is enhancing cooperation with all other countries to safeguard global food security as a contribution to building a global community of shared future.

The white paper has been published in Chinese, English, French, Russian, German, Spanish, Arabic and Japanese by the People's Publishing House and Foreign Language Press. It will be distributed across the country by Xinhua Bookstore.

That's all for the general introduction. Next, I will give the floor to Zhang Wufeng, a member of the Party Leadership Group of the National Development and Reform Commission and head of the National Food and Strategic Reserves Administration.

Zhang Wufeng:

Ladies and gentlemen, dear friends, good afternoon. It's my pleasure to introduce and explain the white paper "Food Security in China" to you. First of all, I'd like to express my sincere thanks to our media friends for your interest and support for China's food security endeavor. 

On the occasion of the 70th anniversary of the founding of the People's Republic of China (PRC), it has important practical significance to introduce the status quo of China's food security through the white paper; comprehensively elaborate on China's stance and policy on this issue; and then work to increase the domestic and the international community's understanding in this field. With this in mind, the National Development and Reform Commission, the National Food and Strategic Reserves Administration, and 12 other government bodies have been focusing on the following five aspects in the drafting process.

Zhang Wufeng:

First, the white paper highlights the strategic nature of food security as a top state issue, and reflects the vision of people-centered development. The CPC and the Chinese government have always prioritized food security in state governance. In the early days of the PRC, Comrade Mao Zedong once said that "food in the hand is a relief in the heart". Although great changes have taken place in China in the recent 70 years since its founding in 1949, the utmost importance of food security remains the same. Since the 18th CPC National Congress in 2012, General Secretary Xi Jinping has stressed on multiple occasions that "we must ensure China's food security so that we will always have control over our own food supply;" and "we must shoulder the responsibility to ensure China's food security." Xi's important speeches above have been taken as the guidelines for this white paper.

Second, the white paper listed the remarkable achievements China has made to ensure its food security, and demonstrates China's confidence in securing its own food supply in a self-reliant way under the leadership of the CPC. Back in 1996, the white paper "The Grain Issue in China" responded positively to the question of "who can feed the Chinese." Over the last 20 odd years, China has successfully delivered on its promises to the rest of the world with our tangible achievements. There are a series of convincing statistics regarding this in the white paper. For example, two leading indicators have surpassed 650 million metric tons. The total food output of China has surpassed 650 million tons for four consecutive years from 2015; and in 2018 the storage capacity of qualified grain warehouses reached 670 million tons. China has achieved a leapfrog of historic proportions - from a society that could not guarantee adequate food and clothing for its people to becoming a moderately prosperous one in all respects. This is not only impressive in itself, but also contributes to the world's development. In the meantime, the Chinese government has never once forgot the poor. Almost one fifth of the world's population has been provided with adequate food and clothing, as well as access to compulsory education, basic medical services and housing. This is a remarkable feat in the world's history of poverty alleviation. 

Zhang Wufeng:

Third, the white paper systematically elaborates on the development of food security with Chinese characteristics, and provides the Chinese approach to the rest of the world in ensuring food security. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has established the national strategy of food security, promoting innovation in the theory, institution, and practice of ensuring food security. China has embarked on the road to establishing food security in its own way by steadily increasing grain production capacity; cultivating and increasing farmers' interest in the planting of grain; innovating and improving the food market system. It has also improved macroeconomic regulation; developed the grain industry economy; established a comprehensive food science and technology innovation system; and strengthened management and operations in accordance with the law. This shows a unique form of Chinese wisdom and a Chinese approach in this field.

Fourth, the white paper introduces China's successful results of international cooperation on food security, and shows that China has lived up to its responsibility as a major country to ensure global food security. China is an active promoter of free trade. It has worked hard to fulfill its commitments to the WTO, and has spared no effort to promote food security across the world. For one, China sees a further opening up in more sectors. China has rescinded import quotas, permits and other non-tariff measures for relevant agri-products, and has further eased restrictions on foreign investment in agriculture. Foreign-funded enterprises are becoming more involved both in the depth and width of China's food market. In addition, international cooperation has been strengthened. Under the principle of sincerity, amity, righteous idea of moral and profit, China has been actively participating in the governance of global food security, providing emergency food assistance within in its means within the framework of bilateral and multilateral cooperation mechanisms such as the BRI, the Forum on China-Africa Cooperation, and South-South cooperation.

Fifth, the white paper shares China's prospects and policies for food security in the future, and provides consistent and stable expectations for the development of food security. "In times of peace one must be alert to danger," this is a widely-accepted motto in traditional Chinese culture, and has been repeatedly stressed by General Secretary Xi Jinping. Currently, the food security situation in China is generally positive, but in the medium and long term, food supply and demand will experience a tight balance. Ensuring national food security is an ongoing issue. Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will implement national strategies of food security and rural revitalization. We will increase food productivity, boost grain reserves, and improve grain circulation, so as to control our own food supply. In the meantime, China will join the global fight against hunger, and promote the sound development of the global food industry.

That's all for the general introduction. Thank you. Next, my colleagues and I will answer your questions.

Hu Kaihong:

Now it's time for the Q&A session. Please identify the news organization you represent before asking your question.

China Central Television:

China is a country with a huge population. General Secretary Xi Jinping has emphasized multiple times the importance of food security, saying that "the rice bowls of the Chinese people must be held firmly in our own hands." At the same time, we have noticed that China also imports grain from other countries. My question is how do you assess China's food security situation? Can we ensure that food is no longer truly a problem for the Chinese people? Thank you.

Zhang Wufeng:

Thanks for your question. Your question is also of wide concern. Over 20 years ago, there were some doubts from foreign countries on whether China could feed its own population. The Communist Party of China (CPC), the Chinese government and the Chinese people have proved that they can solve the food problem on their own.

Ensuring food security is the prerequisite for a peaceful and stable society. For thousands of years, meeting the food demand has been the Chinese people's constant pursuit. Since the founding of the People's Republic of China, the CPC has been sticking to the principle of "putting the people first", and it views food security as the most important mission. Especially since the 18th CPC National Congress, based on international situation, national conditions and food availability, the CPC Central Committee with Comrade Xi Jinping at its core has formed a food security strategy featuring self-sufficiency based on domestic grain production, guaranteed food production capacity, moderate imports, and technological support. It also put forward a new grain security outlook that seeks to ensure basic self-sufficiency of grain and absolute security of staple food. Through a series of effective policy measures, the country has made many achievements. China has fed almost 20% of the world's population with just 9% of the world's arable land and 6% of fresh water. It has achieved the historic transformation from hunger to subsistence, and from a poor to a moderately well-off nation. It has not only ensured self-sufficiency in its own food supply but has also contributed much to global food security.

We can conclude that China's food security situation is now the best it has had in history. This can be explained from the following three aspects:

First, high grain output and sufficient food reserves. Since 2004, China has achieved bumper grain harvests in 15 consecutive years. This year's grain output is expected to be over 1.3 trillion jin, or 650 billion kilograms, for the fifth year in a row. China ensures absolute security of its staple grains, and supplies over 95% of its own needs for grain. It also has sufficient food reserves, which lays a solid foundation for national food security.

Second, stable market supply and steady grain prices. Over the years, China's grain supply has been sufficient, which has met people's daily consumption needs and guaranteed food security in times of natural disaster and public emergencies. In recent years, despite volatility in the international market, China's grain prices have remained generally stable with slight fluctuations within an acceptable range. This has played an important role in promoting stable and healthy economic development and social stability.

Third, full guarantee and strong adjustment measures. With the stable increase in grain production and bumper harvests, China also constantly improves its grain logistics system, the food market system, the grain storage system as well as the emergency supply system. The system of making provincial governors responsible for food security clearly lays out the duties of both the central government and the local governments and helps form synergies among all parties. By adopting more flexible macro adjustment measures and diverse policy tools, China has also promoted the reform in its grain collection and storage system, adjusted government food reserves, facilitated the grain industry economy, and made rational use of both domestic and international markets and resources. Through a series of targeted and effective measures, China has adjusted and upgraded the planting structure, improved the balance between supply and demand, and increased its capacity to ensure food security.

The above three aspects indicate that China's food security situation is sound and the people's demand for food can be met. Of course, we have some imports, mainly of soybeans, to adjust the surplus and deficit in the different kinds of grains. As China is a country with a large population, its balance of food supply and demand would be tight in the medium and long term. As General Secretary Xi Jinping pointed out repeatedly, "one would have peace in mind if he or she does not worry about the food issue." Meeting people's food demand will always be a priority in state governance. We will stick to a path of developing food security with Chinese characteristics, fully implement the national food security strategy and rural revitalization strategy, and increase grain output through the stricter protection of arable land and improved technological innovations. We will strive to build our strength in the grain production industry, secure self-sufficiency, and constantly increase domestic production. Thank you.

China News Service:

In recent years, China's grain harvest has been witnessing consecutive bumper years. The government has also scored remarkable achievements in promoting and improving the reform of the grain storage system. In on-the-spot interviews, we have also learned that many farmers are concerned about how to earn more money by growing grain. So, what measures have relevant government departments taken to protect and mobilize the enthusiasm of grain-growing farmers? Thank you.

Zhang Wufeng:

Thank you. The question you have raised will be answered by Mr. Su Wei.

Su Wei:

Thank you for your question. In fact, earning money by increasing grain production is also very important to ensure food supply and maintain food security. To ensure food security, we must first protect the enthusiasm of farmers and enable them to reap profits from grain production. Our purpose of promoting the reform of the grain storage system is to give full play to the role of the market mechanism, tackle structural issues on grain varieties, and protect farmers' interests more effectively. The government has taken a series of measures to protect and mobilize the enthusiasm of farmers, mainly by reducing costs, working vigorously in the area of purchasing, and increasing farmers' income.

First is to reduce costs. By exempting farmers from the agricultural tax, we have reduced the burden of farmers by more than 130 billion yuan every year, which is a fundamental approach in reducing the burden of farmers. The overall scale of financial support for agriculture has continuously expanded at the same time, exceeding 1 trillion yuan in 2018. By implementing efficient water-saving and high-standard farmland construction projects and increasing investment in farmland water infrastructure construction, we have continuously improved production conditions and enhanced our ability to resist natural disasters. By adjusting and refining the price-setting mechanisms for grain and the policies for supporting and protecting agriculture, we have promoted appropriately-scaled agricultural operations of various forms and reduced the costs of farmers in grain production.

Second is to work vigorously in the area of purchasing. The government has adopted a series of policies and measures to handle grain purchases well, guide enterprises to enter the market actively, and prevent any predicament in which "farmers feel difficultly in selling grain." We have established a specialized post-production service system for grain-growing farmers to provide them with such services as grain-cleaning, drying, storage, processing and marketing. In the areas where conditions permit, smartphone app software for grain sales have been developed to help farmers achieve online sales, meeting the needs of grain sales in rural areas.

Su Wei:

Third is to increase farmers' income. The main method in this regard is to develop industries, improve grain quality, and refine the price-setting mechanisms for grain. We are vigorously developing the grain industry economy and promoting the integration of primary, secondary and tertiary industries so that grain-growing farmers can share the value-added benefits of the processing and conversion of grain.

Here are some examples. In Heilongjiang province, farmers processed 72.3 billion jin (about 36.15 billion kg) of raw grain and realized 103.6 billion yuan in sales revenue in 2018. This is a very good example. In Hunan province, farmers developed a cultivation mode in which "shrimps and rice co-exist" and the total output value reached 10 billion yuan. In Henan province, grain and edible oil-processing enterprises established 718 mu (about 47.8 hectares) of high-quality grain bases, benefiting 1.9 million rural households. In Guizhou province, local governments implemented cultivation projects for the orders of grain and edible oils with competitive advantages, bringing about 9.3 billion yuan of profits for farmers and benefiting 1.15 million rural households.

We have also carried out in-depth high-quality grain projects, promoted the connection between grain production, purchase, storage, processing and marketing, and guided farmers to adjust the grain growing structure and expand the cultivation of high-quality varieties of grain. Presently, the price of high-quality wheat and rice is 0.1-0.2 yuan per 0.5 kg higher than that of common varieties. This has helped realize the goal that "quality grain gets a good price, and high yield increases farmers' income." Thank you.

Nikkei:

Since last year, China's government has introduced a series of policies to increase its self-sufficiency rate of soybean. How have they been working out so far? Thank you.

Zhang Wufeng:

Mr. Su will answer your question.

Su Wei:

Thank you for your question. As we all know, China is the country of origin for soybeans, and has advantages in soybean production. In recent years, as an important measure for the agricultural supply-side structural reform, relevant departments have formulated the Implementation Plan for the Rejuvenation of Soybean Production to promote the recovery and development of soybean production. There are clear goals to achieve the following: An overall soybean planting area of 140 million mu (9.3 million ha) by 2020 and an average yield per mu of 135 kilograms. We aim to also increase both the protein content of edible soybean and fat content of soybean for oil by 1 percentage point and to maintain negative growth in the usage of chemical fertilizers and pesticides. Relevant national departments are actively implementing the objectives and measures in accordance with the plan, which will show results gradually. Thanks.    

CNR: 

We know that the grain reserve system is an important system to guarantee national food security. For many years, China has been strengthening its management in this area, but some concerns still linger on in society. Can China's grain reserves still guarantee market supply? Do we have enough grain to ensure that? Thanks.

Zhang Wufeng:

Thank you. Mr. Huang will answer your questions.

Huang Wei:

Thanks for your questions. I'd like to share the latest data with you. This year, the State Council carried out the third inspection on our national grain reserves. The first two inspections were in 2001 and 2009. We focused on the quantity and quality of our grain reserves. A total of 17,000 warehouse storage points and 190,000 cargo spaces were inspected. According to this inspection, the grain reserves in China can meet the standards required for national food security.

We all know that the grain reserve system is important to guarantee national food security. For China, a country with a population of 1.4 billion, this is particularly important. That's why the Chinese government has paid much attention to it. Through many years of work, we have taken a series of measures to efficiently manage the reserve system. This May, General Secretary Xi Jinping presided over the eighth meeting of the CPC Central Committee for deepening China's overall reform. Opinions on the reform of the grain reserve system were passed during the meeting, which highlighted the direction and provided follow-up for the further strengthening of the management of our reserves.

As for your questions about whether the reserves can meet the market needs, I can share some facts with you. Since the reform and opening up, China's grain reserves have increased along with its grain output. We continue to guarantee grain reserves at the central level. Since 2015, we have also increased grain reserves at the regional level. For example, the areas where more grain is produced than sold are required to guarantee the market supply for three months; the areas where more grain is sold than produced should guarantee the market supply for six months; and for those areas where the grain produced equals the amount sold, they should guarantee the market supply for four and a half months. As for the current status of China's grain reserve structure, wheat and rice take up for 70% of the total grain. In general, China's grain reserves can completely meet the market needs and deal with any potential emergencies.

Market News International:

Mr. Zhang just mentioned that China needs to import soybeans. The U.S. has always been a chief source of supply for soybeans and other agricultural products to China. Since last year, China has used soybeans as a bargain chip during the China-U.S. trade talks. So will that impact the supply of feed for livestock? It is expected that China's pork production will greatly increase next year. If the trade friction continues to escalate, do we have the confidence to guarantee the supply of soybeans and other types of feed for livestock? Thanks.

Zhang Wufeng:

Thanks for your questions. Mr. Su will answer that.

Su Wei:

Thanks for your questions and your attention to China's grain supply. As Mr. Zhang mentioned, China is confident that our reserves can guarantee the grain supply. There are several reasons. First, China has strong grain production capacity, and its total grain production is expected to surpass 650 million metric tons this year. Second, China has sufficient grain reserves to meet any potential emergencies. As Mr. Zhang mentioned, China needs to import some agricultural products, mostly for the adjustment of different varieties. In addition, China is also considering plans to rejuvenate soybean farming. In general, we are confident that we can guarantee the grain supply. Thanks.

The Economic Daily:

Different from the Write Paper on Food Security issued in 1996, the latest edition mentioned that "China will advance from a large grain producer to a food industry power". Would you please tell us by what this means, namely that China can accelerate quality production while developing the grain industry economy? Thank you.

Zhang Wufeng:

Thank you for your question. I would like to take this opportunity to answer it. As is generally known, a strong industrial capacity safeguards food security. Nowadays, since food productivity has achieved stable growth, Chinese consumers are shifting their attention from food quantity to quality, and this has resulted in an urgent demand for developing the grain industry economy. During the past few years, authorities at all levels, following the decisions made by the CPC Central Committee and the State Council, have explored many practices and gained precious experiences. In the past two years in peculiar, the grain industry economy in China has been growing rapidly. I'll show you five points as follows to demonstrate some good examples in different areas.

We focus on "one target" –to facilitate the high-quality development of its grain industries and advance to a food industry power by upholding the principle of "grain planting to the forefront and produce to follow" and "agriculture to the forefront and industry to follow." We are accelerating progress in building a modern food industry system, with a nationwide registration system covering 23,000 enterprises. In 2018, the output value of China's agricultural sector hit 3 trillion yuan, with 11 provinces each achieving 100 billion yuan. Shandong took a lead by generating an output value of 400 billion yuan. It was followed by Jiangsu, Anhui, Guangdong, Hubei and Henan, each exceeding 200 billion yuan. Many enterprises across the country with widely-known brand images and high credibility have formed the backbone industry of the agricultural sector and spearheaded quality production.

We support "two major strategies" – namely, national food security and rural vitalization. We'll promote refined food processing industry, encourage the integration of the primary, secondary and tertiary sectors and achieve equilibrium between supply and demand of high-quality food products.

We stick to the synchronized development among "three chains": first, an intact industrial chain of food manufacturing in broader extent; second, an increase of high added value in the food price chains; and third, the chain of grain and edible oil supply with higher efficiency. 

Zhang Wufeng:

We have built four platforms. We will make greater efforts in launching programs for quality food. In doing so, we will buttress a number of model counties and county-level cities, build several model zones and help develop a certain amount of small-and-medium enterprises with core competences, strong driving force, outstanding professionalism and targeted market products. The four platforms, therefore, stand for quality food projects, model counties and county-level cities, model zones and competitive enterprises. Since 2017, the Ministry of Finance and the National Food and Strategic Reserves Administration has joined hands to launch a quality food project financed with 20 billion yuan from the central government and more than 45 billion yuan from local governments and various social organizations. The investments are spent on building an after-service system of food production, improving services from the institutes focusing on evaluation of food quality, and implementing the Healthy Grain and Edible Oil Action Plan.

We are adhering to concerted efforts with the hope that our food can excel in five aspects: namely production, purchase, inventory, processing and sales, by improving the quality and efficiency of food productivities. We are pursuing efforts to build up the food industry and establish a country with a competitive agricultural sector. While changing from quantity-to-quality driven production, agriculture in China should undertake structural adjustment and conduct appropriate business operations. We will boost the production of high-quality grain, purchase it at higher prices, and prioritize its storage, processing and sales. We will improve the structure and distribution of grain processing capacity, encourage the recyclable food economy, strengthen cooperation between food production and sales and improve the "last mile" logistic service to deliver the food and oil products to consumers. By and large, the concerted efforts among production, purchase, inventory, processing and sales are critical to lead our agriculture to excel in the abovementioned aspects with good effects.

We all know that the food industry link production and consumption. It is fundamental and extensively used. Therefore, the country will follow the guiding principles of government, indicators of the market, the appropriate use of natural resources, a green recycling approach, solution-oriented management and a bottom line alarm approach to accelerate innovation with structural upgrading and adjustment and improvements in quality and efficiency. We will continue to increase our comprehensive capabilities of food production and enhance market competitiveness and social efficiency to safeguard the industrial basis of national food security in all aspects. Thank you.

China Daily:

We all know that China is the most populous country in the world and has successfully solved the problem of how to feed 1.4 billion people. At the same time, as the world's second largest economy and a responsible power, what measures has China taken to expand the grain market opening and strengthen foreign cooperation? What impact have these measures had on the food security in the world? Thank you.

Zhang Wufeng:

Thank you for raising this question, Mr. Su Wei please answer this one.

Su Wei:

Thank you for your question. I think you all will have seen that the white paper "Food Security in China" has a part dedicated to opening up and international cooperation. Mr. Hu gave a brief introduction at the beginning of this press conference. He mentioned that China actively practices the concept of free trade, promotes the development of the grain trade in the world, deepens international cooperation in the field of food and agriculture, and makes very important contributions to maintaining world food security. The main things I want to talk about are three points below:

First, China is continuing to open up. The Chinese government is further relaxing the restrictions for foreign investment in the agricultural sector, and eliminating the restrictions on foreign investment regarding the purchase and wholesale of rice, wheat and corn. The breadth and depth of how foreign-funded enterprises enter China's grain market is constantly expanding, which has become an important force for promoting the development of China's grain industry. China shares its food market resources with the world. In 2018, it imported more than 20 million tons of cereal grain and more than 80 million tons of soybeans to boost the prosperity of world food trade.

Second, China is deepening international cooperation. We are actively responding to and participating in initiatives and activities of international organizations, such as the annual World Food Day and food security publicity. We adhere to the principle of extensive consultation, joint contribution and shared benefits. We also carry out agricultural investments in countries and regions in need, and promote technologies and share experience in food production, processing, warehousing, logistics and trade. Since 2013, we have actively promoted and jointly built the Belt and Road Initiative, established economic and trade cooperation with participating countries, and actively carried out cooperation in the world food trade.

Third, we are actively participating in the governance of world food security. We are exploring new modes of international food cooperation; carrying out all-round, high-level foreign cooperation in food; maintaining WTO rules; promoting a new system of safe, stable and responsible international food trading; and better safeguarding world food security. In addition, China has provided food aid, within its capacity, free of charge at the request of certain countries.

China will continue to open up to the outside world, continuously deepen international cooperation in the field of food and agriculture, and share its technologies, experiences and achievements in agriculture and food with other countries. We will also continue to actively participate in world food security governance, maintain WTO rules, and promote world food security. We very much hope that one day we will see hunger and poverty eliminated from the earth. Thank you.

Phoenix TV:

The quality of food is related to the food safety for consumers. In recent years, all sectors of society have paid close attention to the quality and safety of food. What measures has the government taken to bolster these efforts and secure the public's "safety on the tongue?" Thank you.

Zhang Wufeng:

Your question is very good; Mr. Huang Wei please answer the question.

Huang Wei:

People are very concerned about grain quality. Let me summarize our experiences. I think the key to solving this problem comes in two parts: On one hand, we focus on the production to make sure food is safe from the source; on the other hand, we must focus on the sales section so we can supervise the whole process. Grain has a strong specialty. It can be eaten directly and is the basic raw material for other foods. Therefore, eating unqualified grain will affect the health of the human body. Processing unqualified grain as raw materials will also affect food safety. So, it is very important.

There are many factors affecting the quality of food, including objective factors of production conditions such as soil, water source and even the surrounding climate and environment, as well as the artificial input factors such as seeds, fertilizers and pesticides. After grain is produced, quality problems may also occur during its storage, processing and transportation. Therefore, as this reporter raised the issue of "safety on the tongue", I would say that the issue is a systematic project involving multiple subjects, multiple links, and multiple fields. The key is to focus on the governance at source and make sure the whole process is supervised. We should really do a good job in supervising and managing the whole process from the farming fields to the dining table, in order to ensure that the people eat safely, healthily and eat with confidence.

First, we must control the source. We will continue to supervise the production process; reduce the use of chemical fertilizers and pesticides; use organic fertilizers; strengthen agricultural pollution control and the remediation of contaminated soils; ensure that food can be produced in good soil and water conditions; and make sure grain is of high quality from the very source. Through our hard work, so far, China has now reduced the use of fertilizers and pesticides.

The second is to manage the stock well. It is not easy to grow grain, and it is also difficult to store grain. China is a big grain storage country, and a large quantity of grain is in a state of reserve. Grain is an organism that can breathe, heat, and have life. If it is not properly stored, it will have mold and insect damage, and its quality will decline. In order to ensure quality and safety, and in addition to vigorously improving the conditions of storage facilities, we also promote and use advanced, green technologies and crafts such as intelligent ventilation, circulation fumigation, low temperature storage, and nitrogen storage to ensure good food quality.

The third is full process supervision. On the one hand, monitoring and early warning should be strictly implemented on the production and inventory links. When grain is growing in the fields, we must pay attention to its quality problems; increase the sample amount, coverage and pertinence for monitoring; timely learn the change of the quality of food; and discover problems. According to the statistics of our food system, the number of monitoring samples has been increasing. The total number of monitoring samples reached 520,000 last year. The statistics of the recent five years showed that the number increased by 31.4% compared with the past, so we have put a lot of effort into this aspect and do a good job in monitoring and early warning, and keep well-informed regarding the quality of food. 

On the other hand, we must do a good job in food inspection in circulation. For each batch of grain and every business entity, we strictly implement the grain quality inspection system to strictly prevent unqualified grain from flowing into the grain market. Once unqualified grain is found, the state has a set of special regulations for disposal and it cannot be disposed of at will. In the process, if some entities and individuals are found to be not doing a good job, we will resolutely hold them accountable according to the laws and regulations. We will punish anyone if we find any violations. This will not be tolerated.

Finally, I want to emphasize that the quality of food is the most important issue, and we must be responsible for it. To solve the concerns and expectations of the people, base on our experience in the work, I think the most fundamental thing is to implement the "four strictest requirements" put forward by General Secretary Xi Jinping, which are: using the strictest standards, the strictest supervision, the strictest punishment, and the strictest accountability. We will resolutely safeguard every link of grain production and supply, from farmland to dining table, and earnestly guarantee the "safety on the tongue" for the people, because this is what every citizen cares about. Thank you.

CRI:

Over the past few years, many people have been reluctant to stockpile food. If we have a shortage of food, it will pose huge pressures on the government's ability to deal with an emergency. How can we ensure a steady supply of food if there is an emergency? Thank you.

Zhang Wufeng:

Thank you for your question. We'd like to invite Mr. Huang to answer this question.

Huang Wei:

The question raised by this reporter friend can easily be overlooked when we have sufficient food reserves. According to our work experience, we should not only ensure food security when times are good. More importantly, we should save for a rainy day, otherwise things can be catastrophic when there is an emergency. As such, the Chinese government attaches great importance to food emergency management. After years of hard work, our grain reserves and emergency response systems which are in line with China's national conditions have been established. They can be summarized in the following aspects:

First, we have food in hand. The key to handle an emergency is to have food reserves in hand. When there is an emergency, we can extract the necessary food supplies immediately. As I have mentioned before, sufficient grain reserves are the foundation, the "ballast stone", of our food emergency system. In addition, emergency food reserves for 10-15 days are available in large and medium-sized cities and areas that are prone to price fluctuations. Once there is an emergency, these food reserves can be put into the market and satisfy demand for 10-15 days. Moreover, we also have emergency processing enterprises, emergency supply outlets, emergency distribution centers, emergency storage and transportation enterprises, forming a food emergency supply network. These play an important role in responding to natural disasters such as earthquakes, sleet, snowstorms, and typhoons, as well as public emergencies.

I have some data here to share with the public. At present, there are 5,704 emergency processing enterprises in the country, with a daily processing capacity of 1.38 million tons. We have 48,831 emergency supply outlets with a daily supply capacity of 1.82 million tons, 3,081 emergency distribution centers with a storage capacity of 53.87 million tons and 3,492 storage and transportation enterprises with a daily transportation capacity of up to 1.13 million tons. This set of data will give you a better understanding of what we truly mean by "food in hand" and what can be provided in the event of an emergency.

Second, we can monitor the market in the event of an emergency. By strengthening our food monitoring and early warning systems, we will keep abreast of the dynamic changes in the food market and when an emergency occurs we can coped with in a timely manner. I'd like to show you two numbers. There are 1,817 national food market information reporting centers and 9,523 local food market information monitoring centers, which basically cover key areas and key varieties of food. They can also closely track changes in the food supply, as well as its demand and prices. In this way, we can respond in advance to any shortages or price increases.

Third, we can deal with any potential emergencies in an orderly way. Once supply is starting to tighten up, we can execute on certain plans and deploy certain methods. We have special food emergency plans at the national level with detailed regulations from monitoring and early warning to emergency response. 31 provinces, autonomous regions and municipalities, have formulated provincial-level emergency plans, and 587 cities at the prefectural level or above and 2,440 counties have formulated regional emergency plans. In addition to the emergency plans, emergency drills and training are being carried out throughout the country to ensure that emergency teams and facilities can play an important role during critical times.

Fourth, we have the confidence to shoulder these responsibilities. Government departments must assume their roles. We have implemented the responsibility system of provincial governors for food security and have carried out the assessment of the governors' work. As such, we will ensure that government officials at every level earnestly and diligently assume their duties. 

To sum up, our country's grain harvest has seen consecutive bumper years. Our reserves are sufficient and the efficiency of our logistics has also improved significantly. Our monitoring and control system has become more mature and is being perfected. Therefore, we are fully capable and confident of doing a good job in dealing with any potential food emergency. Please rest assured.

Zhang Wufeng:

Today, with Mr. Hu presiding over the conference, Mr. Su and Mr. Huang and I answered questions raised by domestic and foreign journalists on China's food security. I'm glad that you raised many good questions. If there are any more questions, you may find another time to speak with us again. Please pay more attention to China's food issues.

To conclude, on behalf of the National Development and Reform Commission, and the National Food and Strategic Reserves Administration, we would like to extend our sincere gratitude to Mr. Hu and other SCIO officials and media friends at home and abroad present here today. As you can see, the first sentence of the white paper is "the people are the foundation of a country; food is the primary need of the people". Food security is a critical issue concerning 1.4 billion Chinese people. Please rest assured that we will implement the arrangements of the CPC Central Committee and the State Council, and take on the responsibility to ensure food security in accordance with the instructions of General Secretary Xi Jinping. We will firmly hold the Chinese people's rice bowls in our own hands. Thank you!

Hu Kaihong:

Today's briefing is hereby concluded.

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Read in Chinese

Speakers:

Li Xiaopeng, minister of transport

Dai Dongchang, vice minister of transport

Yu Chunxiao, deputy head of the National Railway Administration

Dong Zhiyi, deputy head of the Civil Aviation Administration of China

Dai Yingjun, deputy head of the State Post Bureau

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

Sept. 24, 2019

Hu Kaihong:

Ladies and gentlemen, good afternoon. Welcome to this conference. Approved by the Communist Party of China (CPC) Central Committee and the State Council, the Outline for Building China's Strength in Transport was launched today. This document is very important. To help you gain a deeper understanding of it, today, we are delighted to invite Mr. Li Xiaopeng, minister of transport, Mr. Dai Dongchang, vice minister of transport, Mr. Yu Chunxiao, deputy head of the National Railway Administration, Mr. Dong Zhiyi, deputy head of the Civil Aviation Administration of China, and Mr. Dai Yingjun, deputy head of the State Post Bureau, to introduce the document. They will answer some of your questions.

Now, I'll give the floor to Mr. Li Xiaopeng.

Li Xiaopeng:

Ladies and gentlemen, friends from the media, good afternoon. It brings me great pleasure to meet you here. Thank you for your long-term attention and support toward China's transport undertakings. On Sept. 19, Xinhua News Agency released the Outline for Building China's Strength in Transport approved by the Communist Party of China (CPC) Central Committee and the State Council. Building China's strength in transport is a major decision made by the CPC Central Committee with Comrade Xi Jinping at its core after considering China's realities, the overall situation and the future development. It will be the focus of our work in the new era. The Outline provides us with a high-level and long-term plan to achieve this goal, opening a new chapter in our work in the new era. The document needs to be carefully studied and implemented.

As we all know, after the founding of the People's Republic of China in 1949, the country's transport development has undergone several phases. We have made historic achievements from initially being handicapped by bottleneck problems to making preliminary improvements and to basically matching the country's needs and conditions. At the 19th CPC National Congress, the strategic plan to build China's strength in transport was announced, setting the direction for future works in this regard. Following the decision and instructions of the CPC Central Committee and the State Council, under the leadership of the document's drafting group headed by Vice Premier Liu He, the drafting of the Outline was organized by the Ministry of Transport with the support of relevant departments of the State Council and local governments. It also involved the efforts of over 10 research institutions, including the Chinese Academy of Engineering (CAE), 32 academicians of the Chinese Academy of Sciences and the CAE, as well as a workforce of hundreds of people. After 22 months of hard work, the document was launched by the CPC Central Committee and the State Council.

Taking this opportunity, I'd like to make a brief introduction of the document from three perspectives.

First, the Outline defined the overall objective of building China's strength in transport.

Our overall objective is to make people satisfied, provide solid support to the country's development, and seek a high ranking in the world. "Making people satisfied" is the fundamental purpose. It focuses on the people-centered development philosophy, and aims at making people satisfied with the country's transport conditions."Providing solid support to the country’s development" is the basic mission. It focuses on providing solid support to the implementation of major national strategies, the building of the modern economic system, and the building of a great modern socialist country. "Seeking a high ranking in the world" is the necessary requirement. It focuses on realizing transport modernization in all respects, and seeking high globalrankings in terms of comprehensive transport strength and competitiveness. The three points are closely associated with each other and form an integral whole, serving as the overall objective of building China's strength in transport.

Second, the Outline identified nine major tasks.

The first task is to build a sound, well-connected infrastructure network. Efforts should be made to build a modern, high quality, integrated, multidimensional transport network, a convenient transport network in individual cities and in city clusters, and an extensive infrastructure network in rural areas, so as to establish multi-layered, integrated transport hub systems.

The second task is to ensure that transportation equipment is advanced, applicable, complete and controllable. Efforts should be made to enhance the research and development of new transportation means and special equipment, and to upgrade equipment technologies.

The third task is to make transport services convenient, comfortable, economical and efficient. Efforts should be made to make transport speedy and easy, establish a green, efficient modern logistics system, and accelerate the development of new business forms and models.

The fourth task is to make scientific and technological innovation dynamic and driven by intelligent technologies. Efforts should be made to improve the research and development of major cutting-edge technologies, promote the development of an intelligent transport system, further apply new technologies to transport, and improve the scientific and technological innovation mechanism.

The fifth task is to ensure that the transport system is safe, reliable, and quick in response. Efforts should be made to enhance intrinsic safety, promote quality construction and precisionmanagement, improvethe work safety system, and enhance emergency response.

The sixth task is to promote green, intensive development. Efforts should be made to make efficient and intensive use of resources, improve energy saving, reduce pollution, and protect and improve the ecological system concerning transport.

The seventh task is to open the system to the world and achieve mutual benefits. Efforts should be made to build a well-connected transport network linking all parts of the world, further implement the opening-up policies, deepen the cooperation with other countries, and actively promote the establishment and transformation of theglobal transport governance system.

The eighth task is to cultivate professional personnel who are innovative and dedicated. Efforts should be made to cultivate high-level technological talents, a professional workforce, and competent administrators.

The ninth task is to improve the administration system and administration capabilities. Efforts should be made to carry on with reform, improve the business environment, improve market administration rules, improve the mechanisms for drawing on public opinions in decision-making on public issues, etc.

Third, three measures have been put forward to ensure the sound and steady implementation of The Outline.

The first measure is to strengthen the CPC’s leadership. We will uphold the CPC's leadership in all respects and give full play to the role of the CPC in the overall planning and coordination of all parties. In addition, we will establish a coordinated implementation mechanism for the building of China's strength in its transportation sector.

The second is to strengthen financial support. We will deepen the reform of investment and financing in the transportation sector and improve the financial support and operation management system with the government playing a leading role, the tiered responsibility system, pooled efforts of various financing sources and controllable risks. We will also encourage diversified market financing to broaden financing channels.

The third is to strengthen the management of implementation. We will formulate supporting policies and allocate public resources in a more scientific manner. We will also promote the coordination between policies related to natural resources, environmental protection, fiscal and taxation, finance, investment, industry and trade and policies for building China's strength in transport. We will carry out a number of key projects, and rationally map out the plan to build China's strength in its transportation sector. We will encourage qualified localities and enterprises to conduct pilot projects.

That's all for the introduction. Next, my colleagues and I will answer your questions. Thank you.

Hu Kaihong:

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

CCTV:

What is the central idea of The Outline for Building China’s Strength in Transport? And as this year marks the 70th anniversary of the PRC’s founding, what achievements has China made in regard to its transportation sector? Thank you.

Li Xiaopeng:

Since the PRC’s founding in 1949, China’s transportation sector has made remarkable progress and experienced historic change. These achievements could never have been accomplished without the strong leadership of the CPC, the huge support from various sectors of society and the Chinese people, as well as the hard work of generations of veterans devoted to China’s transport endeavor.

Here are some statistics for your reference. First is about the transportationinfrastructure.

In regard to railways, by the end of 2018, China's total length of railway in operation reached 132,000km, a five-fold increase from 1949. High-speed rail has been developed from scratch and topped 29,000km by the end of 2018, ranking first in the world.

As for the road network, the total length of roads in operation nationwide was 4.847 million kilometers, 60 times that of 1949. We also began building of our expressways from scratch, and its total length is now 143,000 kilometers, longer than in any other country around the world.

In terms of water transport, the total length ofnavigablewaterways reached 127,000 kilometers, 1.7 times that of 1949. This includes 66,000 kilometers of high-grade waterways. There are in total 23,919 productive berths at ports, including 2,379 10-thousand-metric-ton level berths, around the country, 148.6 times more than we had in 1949. Seven out of the top 10 ports in the world in terms of cargo are in China, namely, Ningbo-Zhoushan No.1, Shanghai No.2, Tangshan No.3, Guangzhou No.5, Qingdao No.6, Suzhou No.7 and Tianjin No.9.

In regard to the development of civil aviation, there are now 235 certified civil transport airports in China. This includes 37 airports which can handle an annual passenger turnover of more than 10 million trips. By the end of 2018, the total number of scheduled flight routes reached 4,945, which was 412.1 times more than what we had in 1950.

In regard to the postal service, by the end of 2018, the total length of postal routes was 9.85 million kilometers, and the number of postal outlets/stations reached 275,000. This is respectively 14 times and 10.4 times more than what we had in 1949.

In addition to the transport infrastructure, remarkable progress has also been made in our transportation capacity. In 2018, 17.9 billion passenger trips were completed, 131 times that of 1949; 50.6 billion tons of cargo was carried through the main transport modes, 271 times that of 1949.

Still, we are keenly aware that there is room for improvement in the development of China’s transportation endeavor. For example, more infrastructure needs to be completed, especially for those in remote and impoverished areas. This remains an urgent issue, and needs to be addressed to build China’s strength in transportation.

Li Xiaopeng:

The 18th National Congress of the CPC made an important decision to build China’s strength in its transportation sector. I’ve mentioned earlier that this is a crucial move of the CPC Central Committee, and I think it is of tremendous importance in the following four aspects:

First, building China’s strength in its transportation sector provides convenience for our people.Second, building China’s strength in its transportation sector facilitates the country’s development. Third, building China’s strength in its transportation sector meets the requirement in the new era. Fourth, building China’s strength in its transportation sector adheres to the problem-oriented principle, and promotes the high-quality development of China’s transportation sector.

With the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the central idea of The Outline for Building China’s Strength in Transport is to implement the guiding principles of the 19th CPC National Congress, focusing on transport sector as well as China's overall development in the future. The Outline has the following two highlights:

First, China stays committed to the underlying principle of pursuing progress while ensuring stability. We follow the new development philosophy, fulfill the requirement for high-quality development, take supply-side structural reform as our main task, and adhere to the people-centered development philosophy and endeavor.

Second, Chinais working to transform the model of development in its transport sector in three aspects. This includes transforming from a speed- and scale-centered development into one focusing on quality and efficiency; to transform from a comparatively isolated development model into a comprehensive transportation model; and to transform from a factor-driven model into an innovation-driven one.

CRI:

Mr. Li, we have learned from you about the ultimate goal of the “Outline”. However, I'm still wondering whether there are some more substantive targets stipulated in it. I would also like to know what roles the railway administration, civil aviation and postal service will play in building up China’s strength in transport and how you will develop your plans in the ensuing phases.

Li Xiaopeng:

The ultimate goal in building China’s strength in transport is to achieve satisfaction for our people, to ensure reliable operations and to maintain our leading competitiveness internationally. Under the general guidelines, we have fleshed out our targets in two phases.

The first phase covers the years from 2020 to 2035. During this period, China will see the rise of a basically advanced transportation network. A comprehensive network of modern transportation is expected to take shape, the satisfaction of our people is expected to increase enormously and the functions of the network are expected to solidify the modernization drive across the country. In addition, we expect the competitiveness and implications of China’s transport to grow dramatically in the international community.

During the second phase, which runs from 2036 to 2050 in middle of this century, we will further develop China’s transport strength in an all-round way. As the “Outline” defines it, we will build a country that is internationally competitive in transport, satisfying our people’s needs and ensuring strong supporting services. The infrastructure’s scale and quality, technical equipment, the S&T innovation capacity and the smart and eco-friendly measures are all supposed to rank high globally. We also expect that our traffic safety, administrative capabilities, road manners and the competitiveness and influence of modern transportation can reach top-notch standards. We will offer our comprehensive services and backups to safeguard the modernization drive of our country and enable our people to enjoy smooth and convenient transportation.

Those are the two major targets which can be further specified as follows.

To be more specific, we have charted three transport networks and two transport circles. The networks comprise, first, well-developed high-speed transportation, exemplified by high-speed railways, expressways and rapid civil aviation; second, improved traffic arteries, like, ordinary railways, national highways, fairways and oil and gas pipelines and, third, basic traffic facilities, such as, ordinary provincial highways, rural highways, branch lines, branch waterways and general aviation.

The circles refer to a speedy transport system covering the transport routes needed by people and rapid global logistics flows. The first circle is called “123 transport rings”, that will ensure one-hour commuting within each city, two-hour travel among city clusters and three-hour trip between the country’s major cities. The second one--“the 123-logistics circle”—is being built in an effort to enable one-hour delivery of commodities around the country, two-hour delivery with neighboring countries and three-hour delivery with major cities around the world. These various targets of the three networks, as well as the two circles in particular, have been constructed initially in some developed regions, even though the effect remains to be improved. However, in most regions, especially in some areas facing a huge disparity with the developed regions, full development remains to be realized. Therefore, while building China’s strength in transport, we should continue to work hard to ensure the three networks and two circles can be developed together in a good way. We’ll try our best to improve our work so as to meet the demands of our people.

That's my answer about our specific targets. In the following sessions, Mr. Yu, Dong and Dai will introduce the issues concerning railways, civil aviation and postal service, respectively.

Yu Chunxiao:

Please first allow me to thank you for your question. Railways are to the national economy what arteries to our bodies. They form a key element of national infrastructure and are essential projects closely related to people’s livelihood. In addition, they play a major role in the comprehensive transport system. In building up China’s strength in transport, we should first complete the modernization drive of railway construction.

Initial research shows we will complete modern railway construction by the middle of this century, or around 2050. By then, the network will provide a strong transport capacity and powerful assistance supporting the various national strategies. The railways are supposed to run with high efficiency, offering top-notch services and environmentally friendly designs. While envisaging the layout of infrastructure construction, we will promote the integrated development of different traffic links, comprising major railway lines, inter-city, suburban and the urban rail system. In terms of railway transport facilities, major breakthroughs have been achieved in our researches to realize the operation of the heavy-haul trains capable of running with a load of 30,000 tons or bullet trains being able to run steadily at 250 kilometers per hour(kph). Our research and development efforts have been holistically reserved for the technologies applied to the system of high-speed wheel-track passenger train, being able to reach a speed of 400 kph or to the maglev system with a speed around 600 kph. In regard to services, we will develop a speedy interregional passenger transit system, which majorly relies on high-speed rail transportation with a larger capacity and higher efficiency to increase the passenger transport capability. We will also improve the overall transport structure, accelerate collecting and distribution of railway transport among different ports and build special railway lines to facilitate the transport of bulky commodities from logistic centers and large-scale industrial and mining enterprises and ease their freight transport over medium-and long-distance.  This is how we will seek to ensure our railways can better meet modern logistics demand with high quality. Thank you.

Dong Zhiyi:

Thanks for your question. With economic globalization, an international aviation hub is not only a type of transportation infrastructure, but also a platform to incorporate the regional economy into the global market and to participate in the international division of labor and competition. At the same time, it is an important way to increase a city’s competitiveness and influence in the world arena and to participate in global resource allocation. In promoting the Belt and Road Initiative that aims to build a community with a shared future for mankind, civil aviation plays an indispensable role due to its unique features such as widespread and long-distance coverage as well as high efficiency.

In our 13th Five-year Plan (2016-2020), the Civil Aviation Administration, which is tasked with serving China’s opening-up strategy, has put forward a national comprehensive airport system with three world-class airport clusters and 10 international aviation hubs forming the core, 29 regional hubs forming a broader network of links, and other non-core airports serving as important supplements. In terms of international aviation hubs, we will work hard to promote the competitiveness in Beijing, Shanghai and Guangzhou airports, and gradually increase aviation functions in Chengdu, Kunming, Shenzhen, Chongqing, Xi’an, Urumqi and Harbin airports.

In recent years, China’s international aviation hubs have seen increasing competitiveness and influence in the global aviation transportation market. According to our statistics, eight of China’s top 10 civil aviation hubs were among the world’s top 50 in 2018. These eight airports include the Beijing Capital International Airport, Shanghai Pudong airport, Guangzhou airport, Chengdu airport, Shenzhen airport, Kunming airport, Xi’an airport and Shanghai’s Hongqiao airport. The Beijing capital international airport became the second airport, after the US Atlanta airport, to have handled over 100 million passengers in a year.

To promote international aviation hubs, we have been actively promoting the building of three world-class airport clusters in the Beijing-Tianjin-Hebei area, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area. We have drafted and implemented the plans with local governments of all levels to push for international aviation hubs in Urumqi, Kunming, Harbin, Chengdu and Chongqing. Currently, we are also pushing for draft strategic plans to build dual hubs in Xi’an and in Beijing.

Dai Yingjun:

Allow me to introduce some information about the postal services. Since the 18th CPC National Congress, China’s postal services have made a historic transformation under the leadership of the CPC Central Committee with Comrade Xi Jinping at its core. The industry’s growth rate ranks among the world’s top, and the total volume of express delivery business maintains its position as the world’s number one, with almost 200 million articles being delivered every day, contributing more than 50% of the global growth in the sector.

For building strength in transportation, the postal services will continue to put people first, prioritize innovative development, and push for reform in increasing quality and efficiency. First, we will build a comprehensive, multi-dimensional network system featuring global coverage, high-efficiency as well as safety and convenience. Second, we will push for the development of postal outlets service and inclusive delivery to better serve the needs of the general public. Third, we will increase both the delivery volume and efficiency, expand the areas with “delivery plus” features, and promote an efficient and convenient service system to better serve the people’s needs, improve their livelihood and help further develop production. Fourth, we will accelerate the building of the international logistics supply chain system, and form a diversified, intensive and smooth international delivery network with win-win cooperation as its aim. Fifth, we will build a sustainable industrial system, accelerate technological innovation and digital transformation, and push for green development to protect the environment.

Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, all members of the postal services will implement the “Outline for Building China's Strength in Transport,” assume the responsibilities of “meeting social demand, providing quality services and contributing to better living standards,” so as to contribute to the building of a great modern socialist country. Thank you.

Li Xiaopeng:

We will work hard across the industry and write a new chapter for the rapid development in rail, civil aviation, postal services, road, and waterborne transport, so as to build China's strength in transport, better serve the people and play a strong supporting role in the country's development.Thank you.

China Business Network:

What role will science and technology play in building China's strength in transport? In addition, we are wondering how big data and artificial intelligence will help build China's strength in transport in the future. Thank you.

Li Xiaopeng:

The development of science and technology plays an important role in building China's strength in transport.If you still remember, I mentioned the role of science and technology in the past when I spoke about the achievements in the past or when I elaborated on the follow-up developments. Science and technology play an important role in the achievements we have made in development over the past seven decades, and will play an important part in future development. In today’s world, science and technology have developed very rapidly. The integration of advanced new technologies into the traditional transport industry will inevitably produce new technologies and new equipment, and will also create new forms of businesses and even new industries. Therefore, it will play an important role.

In the next step of building up China's strength in transport, we must transform the impetus and driving force, helping them transition from being simply input-driven to innovation-driven.This is to better underscore the role of science and technology in innovation. To be specific, technological innovation will play an important role in the planning, construction, maintenance and operation of various infrastructure. Science and technology will play a significant role in the research and development, manufacturing, upgrading and transformation of equipment. Science and technology will also play a role in improving transportation services, from the service philosophy to service mode and service level. In addition, science and technology will play an important role in the governance of transport and improve the level of governance.

Of course, science and technology will undoubtedly play an important role in various aspects of transportation, such as energy conservation and environmental protection, as well as creating ways that resources are used intensively but in a way that also seeks to conserve them. In short, science and technology will play an important driving and leading role. Thank you.

Economic Daily:

Recently, the official Weibo micro-blogging account of the Ministry of Transport, named "The Road by My Doorstep," has been particularly popular, showing that there is a strong level of public interest in the construction of rural roads. The Outline proposes to comprehensively promote the building of "Four Good Rural Roads." May I ask the minister, what shortcomings do we have in the construction of rural roads in China? What are the next steps to promote its high-quality development? Thank you.

Li Xiaopeng:

I will ask Mr. Dai to answer this question.

Dai Dongchang:

This question is very good. The development of rural roads impacts tens of thousands of families, broad rural areas, and the broad masses of farmers. It also impacts everyone in this room. The phrase we just mentioned, "The Road by My Doorstep," is used by the Ministry of Transport in its social media account. The public response to it has been very enthusiastic, everyone now deeply feels the changes in the transportation conditions when they return home -- the roads by the doorstep of their homes in their hometowns are no longer the same roads they had in the past. Now when people go back, they will have a feeling of joy and “jamais vu.” Many feel that they can't even recognize the roads, because the roads in their hometowns have changed. As the changes in transport have brought about a series of changes, I think your question hits a key point.

Let me first make a brief introduction -- rural roads refer to county roads, township roads and village roads in our nation. The administrative levels of our national highways are classified as national, provincial, county and township. Rural roads are an important part of our comprehensive transportation system. They are also an important part of the basic transport network as introduced by the minister just now. They are like our country's capillaries and are very important. Their scale now accounts for more than 80% of the total length of China's roads. The total mileage covered by rural roads was 4.04 million kilometers at the end of last year. As evident, the scale is very large, and this is related to tens of thousands of households and is related to all aspects. The "Four Good Rural Roads" and the development of rural roads are also an important part of building China's strength in transport.

As mentioned earlier, over the years, we have been working hard to promote the building of "Four Good Rural Roads," which was personally summarized and proposed by General Secretary Xi Jinping. He took the lead himself in pushing for it to be practiced as it is an important project to improve people's lives and can win people's hearts and show the government's care. Under the guidance of the spirit of the important instructions by General Secretary Xi Jinping, the Ministry of Transport has actively pushed forward the implementation of the instructions of "Four Good Rural Roads" over the years. We refer to the instructions of "Four Good Rural Roads," which means we need to do a good job in the four aspects of construction, management, maintenance and operation of rural roads. This sounds like a very usual thing, but it is not easy to do it well.

Based on preliminary work, this year the Ministry of Transport and the seven ministries and commissions issued the "Guidelines for Promoting the High-quality Development of the 'Four Good' Rural Roads." This guideline on high-quality development was issued based on previous work. After years of hard work, by the end of this year, all the administrative villages and towns which possess the necessary conditions are able to achieve the goal of having tarmac and cement roads. And by the end of next year, all the administrative villages and towns which possess the necessary conditions will be able to have shuttle bus services. But even after the basic results are achieved, we will not stop there. The guidelines were jointly issued by us and the seven ministries and commissions for promoting the high-quality development of rural roads. Based on preliminary work, we will further promote high-quality development and better implement the requirements of General Secretary Xi Jinping.

At the same time, we have also issued a series of documents such as "Guidelines on Implementing the Spirit of the Important Instructions by General Secretary Xi Jinping of Doing a Good Job in Making Transport Construction Projects More Inclined to Benefit Access to Villages and Rural Households." Originally, we said that this year's and next year's goal are to build in townships and villages with the necessary qualities. We also facing a large number of natural villages. We are now doing it step by step and will do it for a long time. This is what is meant by high-quality development, and we will promote deeper forms of development.

By the end of 2018, China's total length of rural roads had reached 4.04 million kilometers, and the proportion of tarmac and cement roads in townships and administrative villages were 99.64% and 99.47%, respectively. The bus service access rate was 98.6% for townships and for administrative villages it was 97.1%. After years of unrelenting efforts, especially since the 18th National Congress of the Communist Party of China (CPC), the transportation landscape in the broad rural areas of China, especially in the vast poverty-stricken areas, have undergone tremendous change. The travel conditions for the broad masses of farmers have been significantly improved. The sense of benefit, happiness, and security have been enhanced, which is fully reflected by everyone's messages on the account "The Road by My Doorstep" mentioned above.

We would say, as General Secretary Xi Jinping pointed out, the building of the "Four Good Rural Roads" has achieved genuine results, bringing more popularity and wealth to the rural areas, especially to the poverty-stricken areas, and rallying people at the grassroots level for the CPC. While acknowledging these achievements, we are also clearly aware that there are still some problems that cannot be ignored in the building of the "Four Good Rural Roads." These are the shortcomings and problems mentioned by the reporter just now. The task of rural road construction and problem of shuttle bus service access are still very challenging. We have only achieved the goals we have set at this stage. The tasks we face in the next stage are still very difficult and we still have a long way to go. There are also problems such as "worn tarmac roads returning to the state of sandy roads," "once smooth roads deteriorating due to the lack of maintenance," as well as the problem of rural shuttle bus services having access but not being able to remain in operation for long. These phenomena still exist. In particular, the problem of rural road management and maintenance is still outstanding. Over the many years of construction, the building of many rural roads has cost a lot of energy and financial resources. However, if management and maintenance cannot keep up, it will become a big problem. This is a problem we are aware of. This is a shortcoming that we are currently focusing on.

In order to solve this shortcoming, "The Outline for Building China's Strength in Transport" is clearly proposing that we comprehensively promote the building of the "Four Good Rural Roads" and establish a standardized and sustainable management and maintenance mechanism. Recently, you may have noticed that Xinhua News Agency authorized the release of this new guideline yesterday. The General Office of the State Council also issued the "Opinions on Deepening the Reform of Rural Roads Management and Maintenance System" and deployed the reform of the rural roads management and maintenance system. I would say that the main purpose of this document is to focus on solving the shortcomings and problems of management and maintenance in building "Four Good Rural Roads," promote the high-quality development of the "Four Good Rural Roads," support the building of China's strength in transport, and serve the implementation of the rural village revitalization strategy.

Let me briefly introduce the "Opinions" issued by the General Office of the State Council recently. It clearly states that by 2022, we will basically establish a rural road management and maintenance system and mechanism with clear rights and responsibilities, and form a pattern with clear government financial input responsibility and active participation of social forces. With this, the management capacity on rural roads will be significantly improved, and the management system will begin to take shape. By 2035 a comprehensive and highly-efficient rural road management and maintenance system  will be fully established, and the basic public services for urban and rural road transportation will be made equal. The road conditions and road environment will be comprehensively improved, the rural road management capacity will be comprehensively enhanced, and the management system will be comprehensively improved. As for how to make up for any shortcomings, the document from the State Council and its General Office has outlined plans for that, and we will try our best to make up for any shortcomings.

As the next step, the Ministry of Transport and the relevant departments will put forward requirements on how to strengthen the implementation of the "Opinions," and urge all local governments to seriously carry out and implement the "Opinions".It will also adopt the principles of quality-oriented, safety-first, natural harmony and green development to deepen rural road management and the reform of the maintenance system. This will promote the formation of a government-led, industry-directed, sector-coordinated work situation that has mass participation. This will demonstrate the requirements and principles applicable to the development of rural roads, boost the high-quality development of the "Four Good Rural Roads," provide better guarantees for the masses of farmers to increase their wealth and live a well-off life, and also to speed up the modernization of agriculture and rural areas. Thank you.

Li Xiaopeng:

I would like to add a little bit, to reveal two small messages. First, due to the needs of reform and development, we are now promoting the revision of the Highway Law.We hope that the legal status of rural roads will be clarified in the revision of the Highway Law. Once it is passed, though this will take a long time and it will undergo a long process for the National People's Congress to discuss it in the future, it will have a significant impact on the development of rural roads. And the second part I’d like to reveal is: in the process of promoting the revision of the Highway Law, we are promoting the formulation of rural road regulations, which is a subordinate regulation of the Highway Law. This clarifies a series of requirements for rural road construction, management, maintenance and operation. I would say that if the law and the regulation are revised and formulated to achieve their effects, it will better promote the implementation of General Secretary Xi Jinping's instructions for rural road construction, so this is very significant. Thank you.

China Daily:

The Outline put forward that a safe, convenient, efficient, and green modern comprehensive transportation system will be established and the expressway tolls at provincial borders will be removed across the nation. The latter can be deemed as a measure to realize the former concept. What is its current progress? Thank you.

Li Xiaopeng:

Thank you for your question. You have just mentioned a key task of the transportation sector this year.

We all know that expressway construction in China was conducted by the provinces separately, so establishing toll booths at province borders was the only option in the past. In addition, technology and network facilities were also limited then. Since the conditions have changed now, such past systems can be done away with to improve efficiency and lower logistics costs and people’s burden. The State Council unveiled a guideline on deepening the toll way system reform and removing expressway tolls at provincial borders in May this year. This noted that expressway tolls at provincial borders will be removed by the end of this year.

To accomplish this task well, the State Council approved the establishment of a leading group joined by several ministries and led by the Ministry of Transport. All the provinces have put forward a clear agenda and schedule on this task and the removal of expressway toll booths is now being implemented across the whole country.

Li Xiaopeng：

First, the electronic toll collection (ETC) system was popularized rapidly this year. By September 18, the total number of ETC users stood at 130.51 million, meaning 68.39% of the task of issuing the devices have been completed. Until now, the public’s use of these devices in expressway exits and entrances reached 43.51% and 43.13% respectively. We had a target to install such devices on over 80 percent of registered automobiles by year-end with the usage rate reaching 90%.

Second, the project is being implemented across the nation. To remove toll booths at province borders, the first job is to dismantle them and then construct more ETC lanes. These are both construction projects.

Third, many portals need to be installed to guarantee the smooth operation of the ETC system. It should be installed at around every ten-kilometer stretch of road to make the billing more accurate. This is also a construction task.

Fourth, we are promoting the improvement of policies and the amendment of laws and regulations. To accomplish this task, we need to complete the Green Channel policy and the toll free policy on holidays and festivals, rationalize local preferential policies and adjust the weighting modes of trucks. These works are all under progress.

According to the general plan of removing expressway toll booths at provincial borders, we should accelerate all the tasks in October and start joint adjustment and test work in November.

Bloomberg:

You just mentioned several development plans in the transportation sector. Can you tell us more about the investment volume of realizing these targets? For example, you talked about the construction of building civil aviation hubs, are there any investment plans on this?

Li Xiaopeng:

Thank you for your question. First, I want to stress that building a strong transportation system includes not only infrastructure construction, but improving the equipment, service and management levels. Though infrastructure construction is an important part, the latter elements are also of great importance.

Secondly, infrastructure construction needs a high volume of investment. The outline does not come down to the investment scale as it’s just a general plan and guidance document. After its publication, we will compile a planning outline on the national comprehensive three-dimensional traffic network from 2020 to 2050 based on it. It may include a more detailed description about its future development and some key projects and infrastructure construction projects. But it’s probably also a general plan which cannot answer your question either. However, our five-year development plan can meet your requirements. Right now, the 14^th five-year development plan of the transportation sector is being compiled. I cannot give you the specific figure now, but I promise to tell you when it is released.

China Traffic Radio:

How will The Outline for Building China's Strength in Transport support and serve the implementation of China’s national strategies? Thank you.

Li Xiaopeng:

Now Mr. Dai Dongchang will answer your question.

Dai Dongchang:

The transport infrastructure industry plays a basic, strategic, pioneering and service role in the country’s economic and social development. It has an impact on the national economy and people's livelihood, enhances China's economic dynamism and competitiveness internationally, and impacts everyone’s daily life. We know this too well from our own experience.

First, the outline serves the implementation of a coordinated regional development strategy. The coordinated development between regions cannot be achieved without a well-connected transport infrastructure system. For years, we have consistently supported and served the regional development of eastern, central, western and northeastern China, facilitating east China's trailblazing development, central China's rise, west China's development and northeast China's revitalization. We enabled the transport industry to play an important role in the implementation of several well-known national strategies and regional development strategies. This includes the Yangtze River Economic Belt, the Coordinated Development of the Beijing-Tianjin-Hebei Region, the building of Xiong'an New Area, the strategy of ecological protection and high-quality development of the Yellow River, the Belt and Road Initiative, as well as the balanced development of transport in the Guangdong-Hong Kong-Macao Greater Bay Area, Hainan province and Yangtze River Delta.

Second, the outline serves the three critical challenges. We will comprehensively improve the transport service capacity to help forestall and defuse major risks, intensify precision efforts on poverty alleviation and address pollution.

Third, the outline serves the implementation of the rural revitalization strategy. Equitable public services in transport have also been promoted.

Fourth, the outline serves the implementation of expanding the opening up strategy. During the process of building an inter-connected and global transportation network, the transport industry has become one of the several industries which has yielded early harvests.

Hu Kaihong:

Today's briefing concludes here. Thanks to Mr. Li and the other four speakers, and thank you all.

Translated and edited by Chen Xia, Zhu Bochen, Wu Jin, Guo Yiming, Zhang Rui, Mi Xingang, Li Xiao, Li Huiru, Wang Zhiyong, Fan Junmei, Heshan, Wang Qian, Wang Yanfang, Zhou Jing, Kenneth Teh Chiu Soong. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Miao Wei, minister of industry and information technology

Huang Libin, director of the Operation Monitoring and Coordination Bureau of the MIIT and the ministry's spokesperson

Wen Ku, head of the Department of Information and Communications Development of the MIIT and the ministry's spokesperson.

Chairperson:

Hu Kaihong, spokesperson of the State Council Information Office

Date:

Sept. 20, 2019

Hu Kaihong:

Ladies and gentlemen, good afternoon. Welcome to this conference. This year marks the 70th anniversary of the founding of the People's Republic of China (PRC). Over the past seven decades, China's industry and communications sectors have seen tremendous changes. Today, we are delighted to invite Mr. Miao Wei, minister of the Ministry of Industry and Information Technology (MIIT), to introduce the changes and answer some of your questions. Also present at the conference are: Mr. Huang Libin, director of the Operation Monitoring and Coordination Bureau of the MIIT and the ministry's spokesperson, as well as Mr. Wen Ku, head of the Department of Information and Communications Development of the MIIT and the ministry's spokesperson.

Now, I'll give the floor to Mr. Miao Wei.

Miao Wei:

Friends from the media, ladies and gentlemen, good afternoon. Welcome to this press conference. Thank you for your attention to and support for China's development of its industry and information technologies. Now, I'd like to briefly introduce the achievements we have made in these areas in the past 70 years.

Industry lays the foundation for a country's development and prosperity. The application of information technologies serves as the engine for greater advancement and progress of the era.

During General Secretary Xi Jinping's recent inspection tour in central China, he stressed that China must develop its real economy. He also stressed that manufacturing is the foundation of a real economy, so manufacturing must be developed, so as to promote the development of the real economy. He emphasized that only in this way, can China achieve the two centenary goals.

As the 70th anniversary of PRC is approaching, his instructions have greatly encouraged those who are working in various industries and information technology field. In the past 70 years, under the leadership of the Communist Party of China (CPC), Chinese people have overcome various difficulties and explored new ways of development, successfully embarking on a new path of industrialization with Chinese characteristics. It took us only decades to complete a process that took developed countries several centuries. This is truly a miracle in human history.

A prominent feature of our success is that China has established an independent modern industrial system with complete categories of industries, and the size of the Chinese industrial sector is the largest in the world. When the PRC was just founded, we were only able to produce simple daily necessities like cups and kettles. Today, China has become the only country in the world that has all industries based on the classification by the United Nations. The value-added of China's industry has grown from 12 billion yuan in 1952 to more than 30 trillion yuan in 2018, registering an increase of 971 times on constant prices, growing 11% annually. According to the World Bank, the value-added of China's manufacturing industry surpassed the United States in 2010, making China the world's largest manufacturer one and a half centuries after it lost the title in the mid-19th century. Take steel production as an example. In 1949, China's total steel output was only 158,000 tons, accounting for 0.1% of the world's total. In 1958, when the country was launching the Great Leap Forward campaign (1958-1961), we struggled hard to produce 10.7 million tons of steel. By 2018, the country's total steel output surpassed 900 million tons, increasing 5,799 times from 1949, and has for years, contributed to half of the world's total steel production.

In the meantime, China has seen a substantial enhancement in its innovation capacities regarding industrial and communication sectors. In particular, after the 18th CPC national congress held in 2012, and with the progress of the innovation-driven development strategy, China has achieved the strategic goal of "gaining a foothold" in major sectors and development directions.

A batch of products, such as the self-developed high-speed Fuxing bullet trains and the third-generation nuclear reactor technology, The Hualong One, are all world-leading technologies. A group of Chinese manufacturing enterprises, including Huawei and the CRRC, have also gained greater recognition in the world. Take the mobile telecommunications industry for example, China has made historical achievements in the past decades. We followed the trend in the 2G era, made a breakthrough into the 3G era, achieved synchronized development with other countries in the 4G era, and lead the world in the 5G era. China now boasts the largest number of 5G-standard-essential patents in the world.

By the end of 2018 and largely driven by the development of information and communications technologies, China's digital economy reached a total worth of 31 trillion yuan, accounting for one third of the country's total GDP.

Miao Wei:

China has made remarkable achievements in industry and information technology sector over the past 70 years, thanks to the strong leadership of the Communist Party of China (CPC). The CPC Central Committee has always regarded industrialization as a highly valued and strategic priority for national economic development. It has seized the historic opportunities brought about by the information revolution, and implemented the appropriate development strategies and policies for different situations and tasks at different stages. After the 18th CPC National Congress, General Secretary Xi Jinping gave important instructions on revitalizing manufacturing and promoting the application of information technology in the industry. He put forward two strategies with the vision to build China into a manufacturing and cyber powerhouse.

Looking ahead and starting our journey from a new beginning, we should first cherish the great achievements, summarize past learnings and carry on good practices. We should follow the strategies outlined at the 19th CPC National Congress, uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and adhere to the new path of industrialization with distinctive Chinese characteristics. We should also push forward in our efforts to create high-quality manufacturing industries and accelerate our work to build China into a powerhouse in both manufacturing and cyber development. We also should continue to make even greater contributions to realizing the two centenary goals and make China a great modern socialist country in all aspects.

Here is what I would like to brief you on for now. I will leave the time to you, and I am willing to take your questions together with my colleagues.Thank you.

Hu Kaihong:

Thank you, Mr. Miao. The floor is open to questions. Please identify the media outlet you represent before asking questions.

China Media Group:

Mr. Miao, the country has seen tremendous changes in its industrial landscape over the past 70 years since its founding, made a huge leap from being a small to a large economy and from a weak to a strong nation, and taken historic steps towards building a manufacturing power. What key words would you use to sum up the industrial development over the past 70 years? Thank you.

Miao Wei:

Thank you. I would use the following key words to summarize the achievements and highlights of China's industrial development over the past seven decades.

First, "No. 1 manufacturing power." China has made historic leaps in its industrial development since its founding 70 years ago, and since the reform and opening up in particular. The country's industrial value added exceeded 1 trillion yuan in 1992, 10 trillion yuan in 2007, 20 trillion yuan in 2012 and 30 trillion yuan in 2018. In 2018, China's industrial value added accounted for over 28% of the world's total, making it an important driver of global industrial growth. Among over 500 major industrial products in the world, China ranks the first in the output of over 220.

Second, "complete industrial system." China highly values the construction of its industrial system, and has distributed limited resources to its industrial sectors since the very beginning of its first Five-Year Plan, laying a solid foundation for its subsequent industrialization. After 70 years of development, China has now formed an independent and complete modern industrial system comprising 41 large industrial categories, 207 medium industrial categories and 666 small industrial categories. China is the only country in the world that has all the industrial categories based on the industrial classification of the United Nations.

Third, "innovation-driven development." As a major contributor of innovations, Chinese companies are continuously increasing their investment in research and development (R&D) and improving their level of technological innovation. They have become a fundamental driving force and source of the country's sustained and rapid progress. In 2017, the investment in the R&D of companies above the designated size increased from 0.56% in 2004 to 1.06% last year, and the number of valid patents of companies above the designated size reached 934,000, an increase of 29.8 times over 2004.

Miao Wei:

Fourth, "deep integration of industrialization and informatization." China accelerated the deep integration of industrialization and informatization and achieved positive results in the development of intelligent manufacturing since the 18th CPC National Congress. Since then manufacturing saw a continuous improvement in integrating more digital, internet and intelligent technologies. By June 2019, the popularization rate of digitalized R&D and design tools among companies reached 69.3%, that is, 69.3% of the companies used digitalized tools in their R&D and design. Up to 49.5% of key working procedures, such as numerical control machines used on production lines, were under numerical control. The deep integration of the internet, big data and artificial intelligence with the real economy laid a solid foundation for us to seize the opportunities of the Fourth Industrial Revolution.

Fifth, "thriving small and medium-sized enterprises (SMEs)". Over the past 70 years, China's SMEs and private companies grew from small to large and from weak to strong, and played a unique and important role in increasing employment, stabilizing growth and promoting innovation. By the end of 2018, the number of SMEs in China exceeded 30 million, and the number of individual businesses totaled over 70 million, contributing over 50% of the country's tax revenue, over 60% of its GDP, over 70% of its technological innovations and over 80% of the national employment. With the implementation of the central and local governments' policies to support SMEs, these companies will enjoy more opportunities, greater room for growth along their paths of development, and radiate a stronger vitality. That's all.

CNR:

Enormous progress has been made in the information and communications industry since the PRC was founded in 1949. As the minister of industry and information technology, what do you think of theprogressmade? Thank you.

Miao Wei:

Thank you for your question. Today's press conference is held at the Beijing Telegraph Building, which was built around the National Day in 1958. As a landmark building of New China, the building stands as a living monument to the development of the country's information and communications industry. It bore witness to the application of various communication technologies and businesses in people's daily life. From thetelegraphto thetelephone, and from the beeper to the cell phone and now the smart phone,the number of communication devices used in every Chinese household are sufficientto create a small exhibition. I think the progress in China's information and communications industry over the past seven decades lies in two major aspects.

The first aspect is serving the everyday needs of people. We tried to make communications services more accessible, faster and more affordable to meet people's aspirations for a better life.

Thanks to 70 years of continuous efforts, we have established the world's largest information and communications network. China has about one-fifth of the world's population but more than half of the total 4G base stations. It means that the average per-capita access to information infrastructure in China is much higher than the average global level. China has more than 45 million kilometers of fiber-optic cables, 1.7 billion phone users, 440 million internet broadband users, and a total of 854 million internet users. In addition, measures such as the project to provide telecommunications services to all villages and thetrialsto provide universal telecommunications services have also enabled people living in remote rural areas to enjoy the benefits of information and communications technologies.

We have made active efforts to promote the development of broadband facilities, further boost broadband speeds and lower the rates for internet services. Since 2014, the download speeds of both fixed and mobile broadband have increased nearly seven times. We have also vigorously enhanced the coverage of the fiber optic internet. At present, fiber optic internet connectioncovers 91% of Chinese households, of which 79.4% are enjoying services atspeeds of 100Mbps or above. These are all world's leading levels.

We have cancelled charges for domestic roaming and long-distance calls as well as data roaming. The fees for fixed and mobile internet services have been scrapped by more than 90% compared with those five years ago, enabling people tobenefitmore.

The second aspect is fueling economic and social development. First, on the development of new types of infrastructure, including 5G, the industrial internet and artificial intelligence, we have kept pace with advanced countries or have even led the world in some sectors.

Second,new business forms and models are constantly emerging. A world-class information and communications network has given birth to world-leading enterprises such as Huawei, Alibaba and Tencent, as well as new business forms such as e-commerce and the sharing economy. At the same time, the application of autonomous driving, intelligent home appliances, VR/AR, long-distance education and long-distance healthcare is thriving.

Third, the level of openness and cooperation has achieved a new high. As the world's most prosperous information and communications market, we encourage private investment in mobile communication resale, broadband access and internet data centers. We are ready to share development opportunities with foreign companies and are gradually increasing the openness of the telecom sector. We are also implementing the Belt and Road Initiative by improving information connectivity among participating countries. The internet and information communication have helped create an Information Silk Road in addition to the existing land, sea and air routes.

Radio Television Hong Kong:

Mr.Miao, some Chinese internet users have recently reported difficulties in using theirVPNs to browse overseas websites. Is it possible for the Ministry of Industry and Information Technology to confirm whether it is strengthening the regulation of VPN tools as the National Day approaches? Does this run counter to the country's relevant internet opening-up policy? Are there any plans for further tightening internet controls in the future? Thank you.

Miao Wei:

I would like to invite Mr. Wen Ku to answer this question.

Wen Ku:

Thanks for your question. VPN,alsoknown as virtual private network, is a general network communication technology. In order to maintain a fair and orderly market and promote the healthy development of the industry, the Ministry of Industry and Information Technology has formulated some regulations on cross-border telecommunications business activities. The regulations, mainly in accordance with the Telecommunications Regulations of the People's Republic of China and the Measures on the Administration of International Communication Access, aim to crack down enterprises or individuals whodo not havenecessary international telecommunication business operation certifications approved by telecommunication authorities, but still rent special lines or VPNs to do illegal business. The relevant regulations will not affect the cross-border internet access of domestic and foreign enterprises and individual users, nor will it affect how they wouldconducttheir business under the law. If foreign trade enterprises and multinational companies need special lines for cross-border networking for their businesses, they can rent them from telecommunication business operators who have the necessaryapprovals from telecommunication authorities and the requisitequalifications to conduct international telecommunication business. Enterprises and individuals who carry out production, business and other activities in China should all abide by Chinese laws and regulations. Any legal business operations or legal utilization [of tools] will be protected by the law.

Taking this opportunity, I would like to emphasize that different countries have different ways of management. Anyone who carries out production, business and other activities in China should abide by Chinese laws and regulations. At the same time, we also pay close attention to the needs of the people. Some information posted online, such asinformationon violence, drug trafficking, gun smuggling and pornography, are not allowed in China in accordance with relevant regulations. It is not about the timing, but a principle that we have always adhered to. Thank you.

The Economic Daily:

Mr. Miao has mentioned the development of small and medium-sized enterprises. As the major authority responsible for them, what measures will the Ministry of Industry and Information Technology adopt to promote their development? Thank you.

Miao Wei:

Since the 18th National Congress of the Communist Party of China (CPC), the CPC Central Committee and the State Council have given higher priority to promoting the development of small and medium-sized enterprises (SMEs), and have issued a series of supportive policies. Actually, SMEs and private enterprises are highly correlated, as 99% of the former, according to the nature of capital, should be classified as the latter, and 99% of the latter are operating in the form of the former. Remarkable outcomes have been achieved in different regions and departments by fully implementing the decisions and arrangements of the CPC Central Committee and the State Council, promoting reform and innovation, and enhancing support. For example, the Standing Committee of the National People's Congress passed last year the newly revised Law on Promotion of Small and Medium-sized Enterprises. The General Office of the CPC Central Committee and the General Office of the State Council have issued a guidance to promote the healthy development of SMEs. In addition, the government has carried out reforms to delegate power, streamline administration and optimize government services so as to facilitate the development of SMEs. The support in financial and tax fields has also become more concrete. At the same time, we have greatly promoted mass entrepreneurship and innovation across the country. In the first half of this year, an average of 19,400 new businesses were registered every day, and most of them were SMEs.

As the major administration department responsible for promoting the development of SMEs under the State Council, we have resolutely implemented the spirit of the important speech delivered by General Secretary Xi Jinping at the symposium on private enterprises held on Nov. 1 last year. We have focused on addressing the difficulties and dilemmas faced in the development of SMEs, and promoted the implementation of various policies in four aspects.

First, we will take actions to clear the default on private enterprises and small and medium-sized enterprises (SMEs). We are going to complete the task that more than half of the defaults on private enterprises and SMEs will be paid off by the end of this year.

Second, we will push forward to ease financing difficulties and reduce financing costs for small and micro businesses. We will strengthen cooperation with financial institutions, promote the innovation of financial products and services, increase the sum of loans to small and micro enterprises, and carry out special actions to strengthen receivables financing for small and micro enterprises.

Third, we will enhance the competitiveness of SMEs. We will carry out an action plan to promote the interconnected development of large, medium-sized and small enterprises, and make efforts to strategically boost protection for SMEs' intellectual property as well as promote greater informationization, so as to enhance SMEs'levels of specialized development.

Fourth, we will improve the services efficiency for SMEs. We will improve the national internet platform for publishing policies and information concerning SMEs, so that more SMEs can be informed on supportive policies from the central government and local governments at all levels in a timely way. At the same time, we will make full use of such online platforms as the SMEs public service platform network and the national SMEs public service demonstration platform, to provide service support for medium and small-sized business startups and their innovation.

The Wall Street Journal:

Through its reform in the past 20 years, China's telecom industry has become one of the most competitive and energetic industries in China. Can you briefly tell us what China has done to make its three major carriers more efficient and less corrupt? How did publicly listing parts of these three carriers on the Hong Kong Stock Exchange help? Thanks.

Wen Ku:

Thank you for your questions. Your questions just showed great recognition of the development of our communications industry. I would say, China's telecom industry reform is an important part of China's market economy reform. Several reforms have been carried out, such as separation of government and business, breaking up monopoly by introducing competition and taking the lead in getting listed on the stock market. The reform of China's telecom industry has never stopped and it has been successful and effective. Just as Mr. Miao said, through market competition, the communications industry as a whole has reduced its operating costs and improved operational efficiency, making the information and communication infrastructure go from extreme backwardness to become the most developed in the world. The quality of telecom services has improved, while telecom fees have declined. Eventually, consumers benefit from this.

Looking back, in 1994, China Unicom was established. It was the first time we introduced a market competition mechanism into China's basic telecommunications setor.Shortly after, the industry experienced several rounds of reform and restructuring, forming the three competitive entities of today - China Telecom, China Mobile, and China Unicom. The allocation of telecom resources has been improved. In 1997, the Ministry of Posts and Telecommunications incorporated the mobile services of Guangdong and Zhejiang provinces into China Telecom (Hong Kong) Co., Ltd., and made it the first to be listed on the stock market in Hong Kong. This company was later renamed China Mobile. Since then, China Unicom and China Telecom have successively been listed in the overseas stock markets. Through their listings, the three telecom operators have expanded their international vision and innovated on their business philosophy. They have introduced advanced management experience and established the modern corporate system in line with international standards, which greatly stimulated the vitality and competitiveness of the enterprises and elevated them to become ranked among the top 500 in the world. Though the reform of China's telecom industry has made great achievements, the reform will continue to advance. We will constantly seek improvement and progress, and promote the healthy development of the telecommunications market. Thank you.

Xinhua:

My question is for Mr. Miao. Do you use a 5G smartphone? And what kind of influences will 5G have on the public? Thanks.

Miao Wei:

What I am using now is a 4G phone. Currently, there are 11 types of 5Gsmartphones in the business market. But most of them are phones that support the 5G non-standalone (NSA) network. To fully present the performance of 5Gsmartphones, we still need the 5G SA (standalone) network, instead of the NSA based on the 4G network. Huawei is the only company that produces devices that can supportNSA and SA -- primarily due to their chip and operating system. Most of the networksbuilt in China are 5G NSA networks. It is estimated that the 5G SA network willbe put into wider operation next year.

As for the application of 5G technology, I think it willfollow the Pareto Principle. For most users, 4G smartphones will beenough for them to make phone calls, send messages, andwatch videos online. While for a small number of users, for example, mobile gamers, the 4G network maybe not enough. However,5G technology will be mostly applied in fields of the industrial network.

Take the Internet of Vehicles as an example, we have reached agreements with the Ministry of Transport and Ministry of Public Security that the development of the Internet of Vehicles will not only target cars, but also roads. The two parts shouldbe coordinated. 5G is the only way to achieve this “communication,” and that's the advantage we have at theinstitutional leveland in the market.

As for remote medical care, 5G couldbe used for remote monitoring and diagnosis. One such example is China's successful completion of a remote AI+5G heart surgery.

In the field of media, China used “5G+8K” technology to broadcast the Beijing rounds of the FIBA Basketball World Cup which were held a few days ago. 5G+8K technology wasused to broadcast nine tournament games. There are eight 4K channels, six 8kchannels and two channels for high-speed digital cameras deployed in broadcasting vans outside the venue. Many Chinese companies, such as China Telecom, China Unicom, China Mobile, Huawei, ZTE and China Datang Cooperation Ltd. were involved in the broadcasting. Therewas no signal interruption nor break. The public enjoyed thegames on huge screens outside the stadium, with such flawless broadcasting that it felt like they were inside. In addition, China has broadcasted several music dramas with hi-fi audio.

All these effortsare “trial runs” as China prepares for the Beijing 2022 Winter Olympics. By then, though the public may not have the chance to watch thegames on site, 5G can make it better. In the future, more devices will be able to connect to the 5G network to realize their functions, especially the 5G SA network. Eventually, 5G will realize the goalto change society.

CCTV 2:

This year, much of China's major technological equipment have drawn widespread attention acrosssociety. Examples of this are the Airliner C919, special marine engineering machinery vessels, and manufacturing equipment. What positive impact will these breakthroughs have on the overall operation of Chinese industry and the economy? What key issues need to be addressed for further development? Thank you.

Miao Wei:

Thank you for your question. The development of major technological equipment is closely related with the national strategic security as well as the lifeblood of the national economy. As strategic products for basic applications, major technological equipment are important indicators to evaluate a country's core competitiveness in the manufacturing sector. They are of great value to a country, and help to support and propel the development of thenational economy.First, the rapid development of major technological equipment will beeffectivein helping China upgrade its industry and technologies, strengthening the foundations of industry as well as theindustrial chaincapacity.Second, major technological equipment can also provide infrastructure for key areas of the national economy such as inenergy,the petrochemical industry and transportation. Thus, the development of major technological equipment is of great strategic significance in building China into anation that does high-quality manufacturing.

Earlier you mentioned the Airline C919. In the process of its R&D and manufacturing, an industrial chain, involving over 20 provinces, such as Shaanxi, Sichuan and Liaoning, was established. The industrial chain included over 200 enterprises and some 200,000 staffand were led by Shanghai. A number of well-established private enterprises, including some multinationals, have participated in the R&D system of Airline C919. Indeed, the development of major technological equipment requires advanced technologies and a huge initial investment; it is also a work that involves high risks and a long manufacturing cycle. Thus, the challenge of having imbalanced and insufficient development in such projects is important to bear in mind. In this regard, firstly, we need to deepenreformsinadministrative systems and mechanisms, where innovative potential hasyet to be leashed, and energy and motivation are far from sufficient. In addition,issues pertaining to incorporating the capital chain, industrial chain and a chain of innovation still need to be addressed. Secondly, our weakness in terms of basic components, advanced techniques and materials for high-end equipment remains a salient problem. This is especially so when it comes to the equipment for precision manufacturing applied on an assembly line, as well as the testing facilities, all of which need further development. Thirdly, the quality of products and manufacturing need also tobe improved. Some products are comparatively less reliable and stable whileothers are poorly branded.

In the future, we will continue to take supply-side structural reform as our main task, making collaborative efforts to promote R&D and to foster project-oriented and industry-specific manufacturing. We will work to strengthen our key weaknesses and improve our capacity for innovation in order to promote the high-quality development of major technological equipment.

First, we need to strengthen overall coordination. We will work to strengthen the role of the National Leading Group for Building China into a Manufacturer of Quality, coordinating the efforts of all involved, to jointly promote the innovative development of major technological equipment across regions, industries and fields.

Second, we need to promote the innovation of our R&D system, which should be supply-driven, enterprise-centered; involve thecooperation of enterprises, universities, research institutions and consumers, and thecoordinationby manufacturersand business at different stages andscalesof development. Sucha system of innovation should fully empower andmotivate our society to solve critical difficulties.

Third, we need to promote the application for the first batches of key equipment, try to build mechanisms to allow for errors in the application of the first batches, so that key equipment can be improved upon during the application process.

Fourth, we need to improve international cooperation by adhering to a market-driven approach in order to better integrate into the global system of demand and supply. Thank you.

Yicai:

Minister Miao just mentioned that China has become the largest power in terms of manufacturing. China's manufacturing sector has made tremendous progress and now faces certain pressures and challenges. Looking at the preceding indicators, we see that the PMI of manufacturing has been below 50% for the fourth straight month. The year-on-year growth rate of PPI has turned from positive to negative. What do you think of the current situation of industrial manufacturing? What's your advice on how to realize high-quality development of manufacturing?

Huang Libin:

Thanks for your questions and for paying so much attention to the economic indicators. Generally speaking, the industrial economy has been running stably despite the complicated and volatile situation at home and abroad and increasing downward pressure in the economy. In the first eight months, the industrial economic development showed the following trends in the areas of industrial production, corporate performance, industrial restructuring, and the development of medium and small-sized enterprises.

First, industrial production has basically been running stably. In the first eight months, enterprises above the designated size saw value-added industrial output grow 5.6% from last year, which is within this year's target range of 5.5-6% that we proposed at the beginning of the year. The overall growth has been steady but gradually slowing down.

Second, the declines in corporate profits have narrowed to certain extent. In the first seven months, industrial enterprises above the designated size saw profits decrease 1.7% from last year. However, this decline narrowed by 0.7 percentage points in comparison to profits in the first half of the year. Moreover, industrial enterprises above the designated size saw profits increase 2.6% from last year in the month of July.

Third, the efforts to reduce overcapacity have been paying off, especially in the raw materials industry. In the first eight months, this industry experienced a 7% year-on-year increase in value-added industrial output, which is 2.6 percentage points higher than the growth rate of the same period last year. Our commitment to reducing overcapacity in the iron and steel industry in recent years has borne fruit. The capacity utilization rate of the iron and steel industry has exceeded 80%. While maintaining a rapid speed of production, the industry managed to keep the sales-to-production ratio at a high level.

Fourth, the conditions of private and medium and small-sized enterprises have further improved. The business environment has continued to improve. We pressed forward with the work of settling accounts receivable owed to private and medium and small-sized enterprises. Such enterprises have been further vitalized. In the first eight months, such enterprises saw value-added industrial output increasing 7.3% year-on-year, higher than the growth rate of the industrial sector as a whole.

Surely, we must notice that industrial growth has showed a trend of slowing down while still running stably. Some indicators are facing downward pressure. We should take the big picture of the global situation into consideration. At present, global economic growth has been slowing down. The global manufacturing PMI has been below 50% for several consecutive months. The world's industrial growth rate was merely 2% in the first half of this year, while that of developed countries was 0.1%, and developing countries was 3.7%. China's growth rate was still much higher than the global standard. Meanwhile, our industrial production was subject to the influence of geopolitical conflicts, economic and trade frictions between China and the United States, among other uncertainties. In addition, our manufacturing industry has entered a critical period of development with various difficulties to overcome, including industrial restructuring which will somehow affect growth rate. Industrial governance and policy adjustments will also affect the production in certain industries and enterprises. Under the influence of internal and external factors, the industrial economy is facing certain downward pressure.

In short, it is not easy, indeed, to keep our enormous, 30-trillion-yuan industrial economy running stably. The fundamentals of the industrial economy of our country are still sound. We shouldn't be distracted by the short-term changes. Instead, we should focus on the quality and effectiveness of the economic development. We should maintain the strategic concentration on pressing forward with industrial restructuring and upgrading. Following the decision and arrangement of the Central Committee of the CPC and the State Council for economic work, we should implement supply-side reform with in-depth approaches according to the guidance of "consolidating achievements, further vitalizing enterprises, upgrading industrial chain and removing economic barriers", make efforts to stabilize employment, our financial situation, foreign trade, foreign and domestic investment and economic forecast and strive to fulfill our duties.

To keep the industrial economy running stably and maintaining high quality development, we should continue to drive growth through innovation, strengthen the industrial base, step up the development of the industrial chain, fully mobilize the enthusiasm of enterprises, and strive to create a better environment for development. And I believe, through our efforts, the goal we set at the beginning of the year will be achieved. Thank you.

Hu Kaihong:

The last question, please.

Guangming Daily:

It has been reported that China's automotive industry has seen declining production and sales this year. How will you, on behalf of the Ministry, look at the future landscape of the industry? Thank you.

Miao Wei:

Thank you for your question. Automobile is a pillar industry of the national economy. From the rollout of the country's first domestically-made vehicle of the "Jiefang" series in 1956 to a production capacity of more than 27.8 million in 2018, China's auto sector has continued to stay on top of global rankings by production and sales for 10 consecutive years. In addition, China owns more than half of the global production, sales and inventory of new energy automobiles, which is evidence that China is a major auto country in the world. However, since July 2018, affected by multitudes of factors including macroeconomic conditions, automobile production and sales dropped for the first time in 28 consecutive years. Although the rate of the reduction shrunk over the last two months, the industry still remains under considerable pressure.

Given the industrial rules, China's automotive sector has entered a period of adjustments in terms of both the auto market and the industrial structure. The domestic auto industry is expected to be empowered by a combination of factors, like economic growth, urbanization, upgrade in energy conservation and environmental protection standards and scrapping of old cars. Especially, under the new round of technological revolution and industrial transformation, the sector will be increasingly driven by electrification, intelligence, internet connection and shared mobility. Now the auto industry is undergoing a reshaping in a comprehensive way from the motor system, production to operation and consumption and I believe that it will remain headed on an unchanging trajectory of sound momentum in the long run.

So far, the auto industry in China is at a critical point of transforming from high-speed growth to high-quality growth. We should be confident in its development, seize strategic opportunities, and make endeavors in the four respects of structural adjustment, quality improvement, brand-building and expansion into international markets.

In view of structural adjustment, we should adhere to the national strategy to develop new energy vehicles. We should accelerate the industrial integration of automobile, energy, transport and information and communication and boost the development of intelligent and internet-connected vehicles. At the same time, we need to upgrade conventional fossil-fueled vehicles, pursue coordinated industrial development and ensure a smooth transition from old to new growth drivers.

In view of upgrading quality, production and sales will no longer be the only yardstick for judging the performance of the auto industry. More importance should be placed on quality development. Despite the drop in production and sales, the added values fell at a much smaller rate, which indicated an improvement in added values and quality. Auto manufacturers should keep abreast of market demand, develop new products and improve their performance, quality, reliability and after-sales service continuously. Those are the essential things for manufacturers to raise competitiveness and meet the demands of consumers.

Regarding brand-building, manufacturers should establish a strong sense of brand image. We will guide them to adopt a brand strategy with an aim to build centennial brands. They should keep enhancing the popularity and reputation of their brands to increase their brand value and rise toward the middle and the high end of the auto industry chain.

In view of the "go-out" strategy, the auto industry should embrace cooperation based on openness, connectivity, mutual benefits and win-win outcomes.It will take full advantage of the opportunities created by the Belt and Road Initiative. While continuing to expand opening-up and bring in, we also encourage domestic auto makers to step into foreign markets with better products, and achieve high-quality integration into the global industry system and international auto market. I'll stop here.

Hu Kaihong:

Now, let's conclude the press conference here. Please allow me to extend my thanks to Mr. Miao, to the two spokespersons and to everybody here.

Translated and edited by Chen Xia, Zhang Jiaqi, Zhang Liying, Gong Yingchun, Zhang Rui, Li Huiru, Wu Jin, Zhu Bochen, Cui Can, Liu Sitong, Huang Shan, Yuan Fang, Fan Junmei, Yang Xi, Kenneth Teh Chiu Soong, Degen Hill

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Read in Chinese

Speakers:

Liu Liehong, vice minister of the Cyberspace Administration of China

Zhu Guoxian, member of the Standing Committee of the Communist Party of China (CPC) Zhejiang Provincial Committee, head of the Publicity Department of the CPC Zhejiang Provincial Committee

Sheng Yongjun, secretary of the CPC Tongxiang Municipal Committee in Zhejiang province

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office

Date:

Sept. 18, 2019

Xi Yanchun:

Ladies and gentlemen, good afternoon. Welcome to this conference. The sixth World Internet Conference (WIC) will be held soon in Wuzhen, Zhejiang province. To help you gain more understanding of the event, we invited Mr. Liu Liehong, vice minister of the Cyberspace Administration of China, Mr. Zhu Guoxian, a member of the Standing Committee of the Communist Party of China (CPC) Zhejiang Provincial Committee and head of the Publicity Department of the CPC Zhejiang Provincial Committee, as well as Mr. Sheng Yongjun, secretary of the CPC Tongxiang Municipal Committee in Zhejiang province, to this conference. They will brief us on the preparations being made for the WIC, and will answer some of your questions. 

Now, I'll give the floor to Mr. Liu Liehong. 

Liu Liehong:

Thank you, madam. Ladies and gentlemen, friends from the media, good afternoon. Welcome to this press conference. Now, I'd like to make a brief introduction of the sixth WIC on behalf of its organizing committee. 

This year marks the 70th anniversary of the founding of the People's Republic of China. The sixth WIC, co-hosted by the Cyberspace Administration of China and the Zhejiang Provincial People's Government, will be held Oct. 20-22 in Wuzhen. The theme this time is "Intelligent Interconnection for Openness and Cooperation: Building a Community with a Shared Future in Cyberspace." 

At the conference, we will further implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, uphold the four principles established by General Secretary Xi Jinping for making progress in the transformation of the global internet governance system, and carry out his five proposals on jointly building a community of shared future in cyberspace. The ideas of openness, equality, mutual trust and a win-win situation will also be highlighted. The conference will serve as a platform for all sides to exchange views, build consensus and seek cooperation. 

More than 1,500 guests will attend the conference at our invitation. They are all important figures in governments, international organizations, leading enterprises, technical groups and non-governmental organizations. Presently, preparations for the conference are almost complete. Compared with previous years, this session has some special features as will now be outlined.

First, the conference will adopt a new structure. The previous sessions were arranged with a "1+2" structure, i.e. a sub-forum section plus a section to release world leading scientific and technological achievements and an expo section. This year, the conference will be arranged with a "1+3" structure, with the addition of a new section entitled "Straight to Wuzhen" Global Internet Competition. 

Based on previous sessions, the release of world leading internet scientific and technological achievements this time will display an even opener attitude and closely follow the advances of cutting-edge internet technologies. Around 15 top achievements will be highlighted. 

The Light of Internet Expo will be held in a new venue with a total floor space of some 40,000 square meters. It will stage various activities, including the release of new products and technologies, as well as providing space for business negotiations, to help enterprises seek development and accelerate the progress of their various projects.

The "Straight to Wuzhen" Global Internet Competition will focus on business startups and innovation initiatives in the internet sector. It is committed to making itself a renowned international competition for emerging industries and the digital economy. During the conference, a final will be held, and the winners will be awarded. The section will help boost cooperation and innovation in the global internet sector, and encourage business startups in this field.

Liu Liehong:

Second, the conference has sought to enhance its attractiveness. This year, it will present more diversified contents. Focusing on the four major subjects: "Science and Technology", "Industry and Economy", "Humanity and Society". as well as "Cooperation and Governance", it will feature 20 sub-forums, inviting guests from all walks of life to exchange ideas and insights, thus helping to pool wisdom from around the globe. Meanwhile, in addition to a series of well-recognized forums, such as a ministerial forum and business leaders' dialogue, a number of high-level and quality forums will be held. In regard to topics, a number of targeted and forward-looking discussions will be held to address hot issues like AI, 5G and open source chips, cutting-edge topics like industry digitalization, financial technology and industry internet, as well as issues of concern of all parties, like data governance in cyberspace and international cyber rules.

Third, the conference has become more international. With this international vision, the organization and preparations of the conference involve cooperation with renowned international organizations and think tanks. This has involved joining hands with more than 40 international organizations including the United Nations organizations and institutions, the World Economic Forum and GSMA. As a result, a number of high-level dialogues and forums will be held to promote further consensus. Participants of this year's conference will be of a higher level and drawn from various fields, including representatives of governments, leaders of Chinese and foreign enterprises, renowned experts and scholars, as well as heads of international organizations.

Ladies and gentlemen, the WIC, which has already attracted wide attention and received active responses from the global internet world, has been successfully held five times so far. In around one month, the sixth session will open in Wuzhen. We welcome all of you to a more splendid conference. Thank you.

Xi Yanchun:

Thank you, Mr. Liu. I will now give the floor to Mr. Zhu.

Zhu Guoxian:

Thank you. Good afternoon. It is my pleasure to introduce the preparations for the sixth WIC. On behalf of the CPC Zhejiang provincial committee and the provincial government, I sincerely extend my invitation to you to visit Wuzhen and experience the distinctive culture of the ancient town as well as its progress in the digital age. In a couple of weeks, we will celebrate the 70th anniversary of the founding of the People's Republic of China. The sixth WIC will definitely double our celebratory feeling. We have borne in mind the important instructions given by General Secretary Xi Jinping in regard to the WIC and his solicitude for Zhejiang province, and in accordance with his requirement of "fully tapping into the brand of the WIC", we have done all we can to prepare for a conference with a more open and inclusive manner, striving to meet our commitment of hosting a conference that is "more splendid, efficient and influential".

Many journalists present have witnessed the development of the WIC. With the experience we gained during the past five editions, this year's conference will certainly present a brand-new look with diversified contents. 

The conference will showcase the charm of a millennium-old town brimming with modern features. Over the past six years, Wuzhen has taken on a new look as the internet industry has brought about many changes and greater prosperity. We can see landmarks of the conference, including the Wuzhen Internet International Conference and Exhibition Center, the Yunzhou Guest Service Center and the Light of the Internet Expo Center, situated along the Beijing-Hangzhou Grand Canal, which is a world cultural heritage site. The brilliant Wuzhen Theatre Festival and Wucun village with its nostalgic appeal have attracted worldwide attention. A series of smart programs, such as full 5G coverage, the internet hospital, smart senior care and smart transport, have enabled Wuzhen people to feel happier with their life. Wuzhen epitomizes the inclusive development of the global internet economy.

The conference will present fresh progress in using information technology to create a better life. Items high on the agenda include showing cutting-edge technologies in the global internet industry and their power to improve human wellbeing. During the conference, well-known Chinese and foreign enterprises, including Alibaba, Tencent, Huawei, Kaspersky Lab, BMW and Epson, will display their latest technological breakthroughs at the newly-built 20,000-square-meter Light of the Internet Expo Center with a visitor capacity of 10,000. At the same time, we will introduce dozens of smart products, such as 5G long-distance driving, smart vendors, TOLED and space exploration vehicles. We will also improve our services and information management to let people better experience the power of technology.

Zhu Guoxian:

The conference will reflect the profound changes taking place in Zhejiang. The five previous conferences have influenced almost every aspect of provincial economic and social development. The officials of Zhejiang, deeply aware of the importance of the internet, have seized the opportunities presented by past conferences to enhance government efficiency, promote digital transformation, and accelerate the construction of the platforms of "Digital Zhejiang" and "Zhejiang in the Cloud." In this way, the internet has become a new engine powering high-quality growth. In the first half of this year, core industries of the provincial digital economy recorded an added value of 269.6 billion yuan (US$ 38.03 billion), up by nearly 15% year-on-year. We took more practical measures to ensure the success of such brand events as the Zhejiang Special Forum, the Business Talent Show and the Dialogue Between Internet Tycoons. Through these platforms, a great number of internet-related enterprises, projects and talents have been drawn to the province. A more open Zhejiang is sharing innovation opportunities with the rest of the world.

Friends of the media, Zhejiang is where the Red Boat set sail, the boat that honors the conclusion of the first National Congress of the Communist Party of China (CPC) in 1921. Zhejiang is also a pioneer of reform and opening-up, and an important cradle of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. As the host province, we will uphold the "Zhejiang Spirit" of "working in a down-to-earth manner, valuing integrity and harmony, pursuing opening-up for prosperity." We will make preparations in accordance with high standards to entertain our guests with a more exciting and globally influential conference. Here I would like to extend our invitation to old and new friends to visit Wuzhen to enhance friendship and enjoy a pleasant stay. I would also like to express our gratitude to our friends in the media for your long-term concern and support for Zhejiang. Thank you.

Xi Yanchun:

Thank you, Mr. Zhu. Now, let's move on to the question-and-answer session. Please identify the media outlet you represent before asking a question.

CCTV:

As stated, the theme of the sixth WIC is "Intelligent Interconnection for Openness and Cooperation: Building a Community with a Shared Future in Cyberspace." Mr. Liu, could you tell us why this theme was chosen? Thank you.

Liu Liehong:

Thank you for your question, and thanks for the interest of other media friends. I would also like to thank CCTV for your continuous attention to and support for the WIC. The WIC has been successfully held for five sessions since 2014. The "four principles" and "five proposals" put forward by General Secretary Xi Jinping have been widely recognized by the international community. The concept of building a community with a shared future in cyberspace has gained increasing popularity, and has helped contribute Chinese wisdom and solutions to global internet governance.

This year marks the 50th anniversary of the birth of the internet and the 25th anniversary of China's full access to the worldwide web. The world today is undergoing a wider and deeper technological revolution and industrial transformation. Facing unprecedented opportunities and challenges, we need to build a community with a shared future in cyberspace. Following the trend of the times and upholding openness, equality, mutual trust and mutual benefit, the WIC thus chose to adopt the theme of "Intelligent Interconnection for Openness and Cooperation: Building a Community with a Shared Future in Cyberspace." It not only responds to international concern for artificial intelligence, 5G, financial technology, industrial internet and other technological and industrial trends, but also shows the good will for openness and cooperation. This theme will make the conference more comprehensive and in-depth, and help build a strong consensus in the international community, allowing the internet to benefit people all over the world in a better way. Thank you.

CRI:

As mentioned just now, the WIC has been successfully held for five sessions. What influence has it brought to Zhejiang province? Thank you.

Zhu Guoxian:

With five sessions successfully held since 2014, the WIC has gained increasing popularity and influence. Guests from more than 100 countries and regions attend the conference every year. The participants include important government members of other countries, heads of international organizations, as well as leading figures, experts and scholars, and heads of well-known internet companies in China and abroad. The WIC is playing an increasingly important role in promoting economic development, technological progress, better network governance and cultural exchanges.

It is fair to say that the influence of the WIC on Zhejiang is comprehensive, deep and groundbreaking. As I said just now, you have seen the growth of the WIC, and the gratifying changes it has brought. In my view, it covers the following aspects:

First, it shows a new image of Zhejiang. The changes in Wuzhen over the past five years are an important epitome of the high-quality development of the province. The WIC helps the world to know more about building a beautiful Zhejiang. Second, it offers new opportunities. The WIC has brought along new ideas, new thinking patterns and new achievements to help Zhejiang with its internet development and promotion of a digital economy, and added new drivers to the province's economic and social development. Zhejiang is implementing a five-year plan to double the growth of its digital economy and build itself into a national demonstration province in this regard. The core industries of the digital economy are developing rapidly. In 2018, Zhejiang's digital economic aggregate reached 2.33 trillion yuan, up 19.26% year-on-year, ranking fourth nationally in both the total number and the growth rate. Third, it has helped create new areas of cooperation. More and more internet companies are choosing to invest in Wuzhen and Zhejiang after the town became the permanent host of the WIC. During last year's WIC, over 20 contracts worth more than 30 billion yuan were signed across Zhejiang. In recent years, more and more internet companies and projects have settled in Zhejiang. I would like to welcome media friends here and your colleagues to experience the new atmosphere and changes in Zhejiang. Thank you.

China Arab TV: 

There is about a month to go before the start of the conference. May I ask Mr. Liu, which important enterprises and important personnel will be taking part in this year's conference? Thank you.

Liu Liehong:

The WIC is a grand event for the global Internet industry and has been receiving attention from everyone. Regarding the invited guests, we have always adhered to an open attitude. We welcome representatives from governments, industries, and research institutes to gather in Wuzhen, where they can exchange ideas, promote consensus, and contribute wisdom and strength to the development of the global Internet.

Since the work began for issuing invitations for this year's conference, it received great attention and positive responses from all over the world. Currently, a number of important guests have confirmed their participation. They are from more than 70 countries and regions, including representatives from world-renowned companies such as Microsoft, Qualcomm, Cisco, Apple, Intel, Amazon, Kaspersky, SAP, Ericsson, Nokia, Samsung Electronics and Siemens, as well as from Chinese companies with international influence such as Alibaba, Tencent and Huawei, plus a number of central state-owned enterprises. At the same time, there will be a number of Internet pioneers and Internet Hall of Fame inductees, Nobel Prize winners, Turing Award winners and other internationally renowned academic representatives as well as a number of high-level representatives of foreign governments and international organizations. Thank you.

Economic Daily:

We all know that, at the annual WIC, the issuance of blue books and the Wuzhen Outlook are important achievements attracting wide attention from all sides. I would like to ask Mr. Liu, what kind of content will there be in this year's blue books and the Wuzhen Outlook, and what innovations can we expect compared with previous years? Thank you.

Liu Liehong:

Thank you for your questions. The China Internet Development Report and The World Internet Development Report, which are what everyone calls the blue books of the conference, as well as the Wuzhen Outlook, are indeed important achievements of the WIC and generate great interest both domestically and abroad.

The China Internet Development Report 2019 will review and summarize the development of the Internet in China in the past 25 years, with a focus on the latest progress, achievements and trends of China's Internet development in 2019, systematically presenting China's vivid experience and innovative practices in the accelerated progress from being a major cyber power to a strong one. 

The World Internet Development Report 2019 will review the development of the Internet in the past 50 years since its birth, analyze and evaluate the global network development trends in 2019, and summarize the vivid practices and actual outcomes achieved by major countries pushing forward development of the Internet in 2019, and analyze and interpret them, while trying hard to provide new ideas and intellectual support for continued development.

The Wuzhen Outlook 2019 will elaborate the outstanding contribution of the Internet to the progress and development of human society, analyze the opportunities and challenges brought about by its development, and look forward to the beautiful vision that the international community can jointly promote the prosperity and development of the Internet. Compared with previous years, there are three major aspects of innovation this year:

The first is to review the historical achievements of Internet development. This year, we have added two chapters of "World Internet Development in the Past 50 Years" and "China Internet Development in the Past 25 Years" to the blue books being issued. They briefly review the developments of the worldwide Internet and the China Internet respectively, and set forth the profound impact of both on humanity, and how the Internet brings historical opportunities for the great rejuvenation of the Chinese nation.

The second is to look forward to future development trends. The blue books systematically analyze the opportunities and challenges brought about by Internet development, and the outlook for actively using and further developing the Internet, demonstrating our firm confidence in its bright prospects.

The third is to optimize the indicator system for Internet development assessment. The indicator system adopted in the two reports this year has further improved the basic structure, optimized the algorithm model, expanded the evaluation scope, strengthened data collection, and enhanced the indicator system's authority, scientificity and accuracy. Especially in the China Internet Development Report 2019, we have added top-10 rankings for sub-entry evaluation indexes in six aspects covering infrastructure evaluation, innovation capabilities, digital economy development, Internet applications, cyber-security and cyber-governance, providing reference and examples for various places that are promoting the development of the internet. Thank you.

China Daily:

My question is for Mr. Sheng. Last November, General Secretary Xi announced that coordinated development of the Yangtze River Delta has become a national strategy. So how does Tongxiang, a county-level city in the core area of Yangtze River Delta, play its role in the high-quality development of the area by seizing the opportunities presented by the World Internet Conference (WIC). Thank you.

Sheng Yongjun:

Friends from the media, good afternoon. First of all, thanks for your attention and support to Tongxiang and Wuzhen. Since the first WIC, Tongxiang has stepped up its efforts to upgrade social and economy development, with the digital economy becoming a distinctive feature of the local economy. These are evident in the following aspects:

First, new technology. Every year, thousands of companies choose to launch their new technologies, achievements and products in Wuzhen. The 5G town is now under construction in Wuzhen. About 50 5G-related technologies have been introduced so far.

Second, new industry. Over the past five years, the number of the companies related to the digital economy has witnessed fivefold growth. The output value of IT-based manufacturing and the income earned from the main business of information technology and software services have both registered annual growth of 50%. A batch of projects have settled in Tongxiang, including the Center for Application of Beidou Navigation Satellite System, the Base for the CETC Transformation of Scientific and Technological Achievements and Ping An Entrepreneur Town.

Third, new energy. Tongxiang is now home to 135,000 market entities, and over 100 new companies are established daily . The number of national and provincial high-tech companies has reached 1,000, a doubling in the past two years. The index of integration of information and industrialization ranks among top in Zhejiang province. And Tongxiang is among the top 10 cities in the list of the "Top 100 Best Performing Counties in E-commerce."

Currently, Tongxiang has great opportunities for advancement from the international gathering and national strategies. We will promote the city brand and take the opportunities to build Tongxiang into a digital, beautiful, graceful and peaceful city. Specifically, we will target the following aspects:

First, internet innovation. We will power the development of Tongxiang through the digital economy, platform and technology. WIC, the international platform connecting China and the world, serves as a window for representatives from internet businesses to exchange ideas. And we are willing to transfer these ideas into energy driving innovation in Tongxiang. We will build a World Internet Industrial Park, focusing on 5G, integrated circuits, artificial intelligence, big data and other new generation information industries, and launching more projects. We are working to launch programs such as the Kunpeng Ecosystem, Huawei 5G Innovation Center, Baidu Brain Innovation Center, making Tongxiang a place that is nurturing advanced technology, new products and models.

Second, modern governance. We will improve the city management, and to offer better service for the public and make governance more efficient. We have partnered with Huawei, Ping An and CTEC, working together to build Tongxiang into a smart city that is based on the technologies of big data and internet of things. We will build a "digital government" and carry out further reforms to streamline administration and strive to optimize the business environment. We will also explore the model of grassroots governance, and especially power the modern governance system with digital technology.

Third, high-quality development. Wuzhen is of great international influence. And Tongxiang city also takes the advantage of its industrial development, and its optimal location in the Yangtze River Delta. According to the overall plan, the next step will focus on connecting Shanghai and Hangzhou, to achieve more coordinated development of the Yangtze River Delta. Last year, the per capita GDP in Tongxiang reached $16,000, and this will be doubled by 2025. In addition, we plan to double the per capita disposable income of urban and rural residents, and the added value of high-tech and strategic emerging industries. All these efforts will ensure the high-quality development of Tongxiang.

Friends from the media, Wuzhen has attracted much attention from the world. And for Tongxiang, we hope there is not only development for Wuzhen, but for the wider Tongxiang city. We welcome friends from the media to visit Tongxiang and spread its stories to the world. Thank you.

The Wall Street Journal:

In recent years, departments of the Chinese government, including the Cyberspace Administration of China, have issued a series of regulatory documents to regulate the content being posted online. Regulations to monitor online information in particular, have led many Chinese enterprises to start to develop new software, such as Artificial Intelligence (AI) software, to analyze and control some of the content posted online. I would like to ask will the content in those areas be an advantage for Chinese companies over their American counterparts in the future? Because a lot of American companies, including Facebook, cannot fully block videos with violent content, can they learn something from the Chinese side? Thank you.

Liu Liehong:

Thanks for your question. Companies like Facebook and Twitter are actually more adept at content checking. Some time ago, under the pretext of spreading "fake news", Facebook and Twitter banned a number of Chinese accounts that had posted objective and rational views. However, at the same time, a lot of false information that distorts facts and attacks China is rampant. It fully indicates that companies like Facebook and Twitter are actually very accurate in their content censoring, and if someone wants to learn something, they might be a better choice. Thank you.

Guangming Daily:

We know that, the WIC promotes the building of Zhejiang's digital economy and its digital government. This year, Zhejiang continues to deepen reforms in promoting greater work efficiency to benefit the public, known as "without the need for a second trip." So, what are the latest developments in this area? Thank you.

Zhu Guoxian:

I used to be a journalist for 30 years. I think journalists may prefer stories and examples, so I would like to give you an example first. The City Brain, jointly created by Hangzhou City and the Alibaba Group, brings together data from more than 70 departments and enterprises every day, with an average of more than 80 million bits of new data added daily, including 11 major systems such as police affairs, transportation, urban management, cultural tourism, healthcare and 48 application scenarios. These are bringing about new changes in people's daily lives in all aspects. Take urban transportation as an example. Hangzhou has an elevated highway across the city, which is 22 kilometers long. Since it was added to the City Brain, people's travel time has been cut by an average of 4.6 minutes, or 10% compared to before. The traffic signals at 104 intersections in Xiaoshan District have been automatically controlled, and the passing speed of vehicles has increased by 15%, saving three minutes on average in daily journeys. The Hangzhou city management department has also deployed an easy parking system. Users are only required to swipe the QR code once and it's valid across the entire city for life. Until now, there are 303,000 parking spots covered by the "drive away first and pay later" system, which has greatly increased the convenience of city parking. After optimizing traffic management through the City Brain, traffic congestion in Hangzhou has been eased significantly. The traffic delay index has dropped from 2.08 in 2014 to about 1.64 at present, and the ranking of traffic congestion has dropped from second place in the country in 2014 to the 35th place last year. One more example is the healthcare system. The City Brain has launched a "diagnose first and pay later" service, in which patients can seek medical treatment in a more relaxed way with more simplified medical fee payment procedures. Presently, 245 public medical institutions in Hangzhou have access to the system.

We feel that, the WIC brings about not only industrial dividends and economic benefits to Zhejiang, but also the transformation of concepts and the innovation of methods in government services. The CPC Zhejiang Provincial Committee and the Zhenjiang Provincial People's Government is vigorously promoting digital transformation. On the one hand, we strive to optimize the business environment, and promote the development of big data to provide the greatest public convenience so that people don't have to be kept constantly on the run to get things done. It is can be said that our officials' painstaking efforts have achieved a happier life for our people. The app platform of the General Office of the People's Government of Zhejiang Province has gathered 415 service applications, and currently the whole process of starting a business can be done online. On the other hand, we use big data, AI and other technologies to improve the efficiency of government management. For example, the provincial government has launched the "Internet plus supervision" approach. As many as 98.84% of law enforcement personnel in the province have opened 61,500 accounts, and this has achieved a daily average of more than 22,000 online law enforcement activities. It can be said that the digital transformation of government has continuously improved administrative and work efficiency, through which people can get their business done quickly "without the need for a second trip." Thank you.

China News Service:

Mr. Liu, a face-changing artificial intelligence app called ZAO gained immense popularity in China not long ago. However, some online users accused it of infringing individual privacy and imposing unequal provisions. What does the Cyberspace Administration of China think about these new technologies and applications? How will the administration supervise the development of new technologies and applications? Thank you.

Liu Liehong:

Thank you for your question. While creating opportunities for development, the new technologies and their applications also do pose risks and challenges threatening cyberspace security. As a regulatory body, the Cyberspace Administration of China has been proactively countenancing the development new technologies and applications while taking necessary measures to avoid possible risks. We have formulated and ratified a host of laws, regulations and standards, such as, "regulations on the safety assessment of cyberspace information service" and "norms of personal information security". We are now working at regulations on network ecological governance and soliciting public opinions. By establishing these laws, regulations and standards, we guide and supervise Internet companies to conduct safety assessment and regulate the development of new technologies and applications. We have also acted against some apps that have engaged in unlawful collection of personal information to guarantee the safety of personal information, privacy and legitimate rights of online users. Thank you.

Hong Kong Economic Herald:

Mr. Liu, could you please brief us on the highlights of the World Leading Internet Scientific and Technological Achievements this year? Thank you.

Liu Liehong:

Thank you for your question and your interest in the World Leading Internet Scientific and Technological Achievements. Now, the collection of leading scientific and technological achievements of the 6th WIC has been completed. In accordance with the principles of "fairness, impartiality, objectivity and authority," the Recommendation Committee for World Internet Leading Scientific and Technological Achievements of the 6th WIC, composed of nearly 40 Chinese and foreign experts, was established. Currently, their work is coming to an end.

Compared with previous years, the technologies we have collected this year are more diversified, and there will be some new changes in the form of release.

First, more categories are covered. Starting this June, we collected leading scientific and technological achievements in five categories, namely, product, business model, basic theory, technology, and general category. These cover almost all Internet-related fields, including AI, 5G, big data, cloud computing, digital manufacturing and the industrial internet.

Second, more entities are involved. Many companies submitted their research achievements, including foreign companies such as Microsoft, SAP, LinkedIn, Oracle, and Tesla, domestic companies like China Mobile, China Telecom, China Electronics Technology Group Corporation, Huawei, Alibaba, Tencent, Baidu, as well as famous universities such as Tsinghua University, Zhejiang University and Xi'an Jiaotong University. This collection also attracted many SMEs and innovation teams.

Third, innovation is being emphasized more strongly. This year, many innovative scientific and technological achievements have received close attention from the Recommendation Committee. Therefore, we will add a part of recommendation at the release event, so that more innovative achievements can be displayed. Thank you.

Xi Yanchun:

Again, thanks to the three speakers, and thank you all. Today's briefing is hereby concluded.

Read in Chinese

.Speakers:

Yang Guang, spokesperson of the Hong Kong and Macao Affairs Office of the State Council

Xu Luying, spokesperson of the Hong Kong and Macao Affairs Office of the State Council

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office

Date:

Sept. 3, 2019

Xi Yanchun:

Ladies and gentlemen, good afternoon. Welcome to all of you attending this press conference. Recently, the SCIO has held several press conferences to brief you about the situation in Hong Kong. Today, we have invited Mr. Yang Guang and Ms. Xu Luying, the spokespersons of the Hong Kong and Macao Affairs Office of the State Council, once again to update you on the latest situation. They will also answer some of your questions.

Now, I'll give the floor to Mr. Yang Guang.

Yang Guang:

Friends from the media, good afternoon. Today, Ms. Xu Luying and myself come here once again to update you on the latest situation in Hong Kong and share with you our views.

Currently, some positive changes are taking place in Hong Kong. Among them, the most important is that "stopping violence, ending the chaos and restoring order" has become a broad consensus with the strongest appeal for all walks of life in Hong Kong. Through methods like issuing written public statements, advertising and making public speeches, representatives of all social ranks and social circles, as well as non-governmental organizations and institutions have denounced the violent crimes that have been committed, and expressed support for the police's strict law enforcement activities. On Aug. 17, despite heavy rain, nearly 500,000 people took part in a rally with the theme of "oppose violence, save Hong Kong". It was a touching scene. The government of Hong Kong Special Administrative Region (HKSAR) and the police force together have resolutely cracked down on illegal and criminal activities according to law. By Sept. 2, a total of 1,117 people had been arrested, including three members of the Legislative Council of the HKSAR on suspicion of committing a public order crime. Chief Executive Carrie Lam Cheng Yuet-ngor and related departments of the HKSAR have actively communicated with all social sectors to better understand the appeals being made and the anticipation of residents. In a timely manner, they have formulated measures to address the difficulties facing residents and enterprises. One thing to note in particular is that overseas Chinese are of the same mind with Hong Kong people and the people in the rest of China. In many places around the world, overseas Chinese and Chinese students studying abroad have spontaneously organized demonstrations and assemblies, using methods like displaying the national flag and singing the national anthem, to express their deep love for the homeland and strong indignation towards activities advocating "Hong Kong independence" and violent activities. It has been very touching and inspiring.

However, it must also be noted that the situation in Hong Kong remains complex and grave. Violent, law-breaking activities are not completely under control. At some moments, in some places, rioters have gone even further than before. They took insane actions and committed dreadful crimes. Taking the police as their main target, they used sharpened metal pipes, gasoline bombs, steel-wire trap and other lethal weapon to attack police officers, besieged police dormitories, maliciously and illegally spread the personal information of individual police officers and their families online, frantically threatening harm and even killings targeted at police officers, and tried all they could to instigate hatred towards the local police force. On Aug. 30, three rioters ambushed an off-duty police officer, attacking him with a knife, and causing severe injuries. Their brutality was horrific. Rioters also assaulted, insulted, and illegally detained innocent passengers at the airport. They did all they could to obstruct police officers and medical workers from protecting and treating injured passengers. They also threatened to die together with others. They used all kinds of extreme approaches, such as creating bank runs, creating financial turmoil, blocking traffic on major roads, and vandalizing public facilities, to put pressure on the HKSAR government. They shouted slogans advocating "Hong Kong independence" in many places, and even asked foreign governments to interfere. On Aug. 31, after police rejection, they launched illegal demonstrations and assemblies in many places, particularly in busy commercial areas. They threw around 100 gasoline bombs targeting police officers and government buildings. They also tried to attack the headquarters of the resident organ of the Central People's Government in Hong Kong, the HKSAR Legislative Council and the HKSAR government. They also threw tear-gas grenades into the barracks of the People's Liberation Army Hong Kong Garrison. They vandalized facilities in 32 MTR stations, which is one third of the total MTR stations. On Sept. 1, some rioters entered and destroyed the control rooms in Tung Chung and other stations, posing a grave threat to the safe operation of the MTR system. They also blocked roads leading to the airport, meaning the MTR service on the airport express line and several other routes being unable to operate for over six hours, affecting a large number of passengers. What's worse, they tried to infect children and extend their influence into campuses. They encouraged students to boycott classes, using them as a tool to realize their political aims. All these facts show that some rioters' activities have gone far beyond the scope of normal demonstration and rally. In any country or region, under any legal system, their deeds will be taken as violent crimes, and they will be treated as a mob.

Yang Guang:

More and more Hong Kong residents have now clearly realized that the situation in Hong Kong, initially from fallout over revision of the Fugitive Offenders Ordinance, has gone completely awry. A small number of rioters, in committing unlawful and criminal acts, have shown to the world that they have a purpose and a target that have nothing to do with the ordinance dispute. They willingly work as the cat's-paw of external forces and forces that are anti-Chinese and seek to bring chaos to Hong Kong. They have carried out reckless violent and unlawful activities. They seek to create chaos in Hong Kong, paralyze the HKSAR government, and seize control of the region before turning it into an independent or semi-independent political entity exercising complete autonomy that runs counter to central government authority, distorting the longstanding principles of a high-degree of autonomy and "Hong Kong people governing Hong Kong". Their final purpose is to render "one country, two systems" something that exists in name only.

It has now come to the crucial juncture of safeguarding the bottom line of the "one country, two systems" principle and maintaining Hong Kong's prosperity and stability. All those who truly care about and love Hong Kong should remain clear-minded, show their firm stance and clearly understand that there is no middle ground and there should be no hesitation, indecision or wavering on the cardinal issue of ending violence and chaos, on which Hong Kong's future hinges If we truly love Hong Kong, we should firmly vindicate the principle of "one country, two systems". If we truly love Hong Kong, we should act to determinately say "no" to behavior damaging Hong Kong's prosperity and stability and challenging "one country, two systems" principle. Here, we make three propositions:

Yang Guang:

First, we hope the HKSAR government and people from all sectors of society will be able to further build consensus and act to "stop violence and restore order". Untrammeled violence and infringed rule of law is the biggest danger facing Hong Kong. And people's strongest call is to "stop violence and restore order"; the people's strongest call is to fight against violence, safeguard the rule of law, and maintain stability. What Hong Kong needs most now is an end to chaos and violence, thus restoring order to Hong Kong, which is also the foremost, overarching and most pressing task for Hong Kong. It is the duty of all Hong Kong citizens to protect their homeland from destruction. We hope every citizen who loves Hong Kong can consciously reject violence, support Chief Executive Carrie Lam Cheng Yuet-ngor in her efforts to lead the HKSAR government and the police to crack down on violent crimes in accordance with law, and support the HKSAR procuratorate and judicial bodies in performing their duties, thus bringing all radical rioters to justice, fully showing the authority of the law. We should show no mercy to those key members who sparked violence as well as backstage masterminds, organizers, and agitators. All institutions with public power should act quickly and decisively. The struggle to uphold the rule of law is relentless.

Second, I hope people could distinguish the acts of peaceful demonstrations and assemblies to express people's demands from those violent crimes or behavior aiming to challenge the bottom line of the "one country, two systems" principle. Staging an assembly or demonstration is a right that the Basic Law of the Hong Kong Special Administrative Region (HKSAR) has granted to residents. Most citizens participating in the demonstrations and assemblies, including young students, no matter what their reasons or demands are, as long as they act in a peaceful way in accordance with the law and the "one country, two systems" principle, enjoy this legal right. The peaceful demonstrations and assemblies are different in nature from those crimes of unscrupulously challenging the bottom line of the "one country, two systems" principle, attacking resident organs of the central government in Hong Kong, smearing and insulting the national emblem and flag of China, violently attacking the police and innocent citizens, severely damaging public and private property, and endangering public security. We must and will resolutely crack down upon these crimes in accordance with the law. There is no room for tolerance. In the face of crimes, law enforcement means justice, and protecting the law is righteousness. These resident organs of the central government in Hong Kong, including the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region, the Office of the Commissioner of the PRC Ministry of Foreign Affairs in the HKSAR and the Hong Kong Garrison of the Chinese People's Liberation Army are representing China. Their security and dignity should not be challenged.

Third, I hope you will focus on the fundamental issues of Hong Kong's economic development and public well-being, and come up with ideas and jointly seek solutions. The current chaos have mirrored some deep-seated problems in Hong Kong which have come to a point where we must attach great importance and take effective measure to deal with them. The social problems that the ordinary citizens, young people in particular, have been complaining about, such as housing difficulties, the large gap between the rich and poor and the difficulty of upward mobility, have accumulated over a long period of time due to complex causes. We need to identify the crux of the problems and find effective solutions. Recently, some people showing breadth of vision in Hong Kong, the Chinese mainland and abroad have put forward quite a few insightful views on this issue. We support Chief Executive Carrie Lam and her governance team to continue to exchange views with people from all walks of life and young people on relevant dialogue platforms to jointly explore solutions to these issues. This constructive dialogue is very much needed in Hong Kong. As long as people from all walks of life in Hong Kong think actively, pool their wisdom and build consensus with the attitude of being the masters of Hong Kong, they will definitely find the golden key to deal with the difficulties, and turn the anger being witnessed in Hong Kong into harmony.

The central government will continue to unswervingly implement the "one country, two systems" principle and the Basic Law of the HKSAR, and will continue to spare no efforts to support Hong Kong in developing its economy and improving public well-being, and ensure that the outcome of development will benefit all the people in Hong Kong.

That's all. Thank you.

Xi Yanchun:

Thank you, Mr. Yang Guang. Now we open the floor for questions. Please identify your news organization before you ask your questions. In addition, with reference to the previous practice, we will provide consecutive interpretation for all the questions. So, let us begin.

Hong Kong Economic Times:

The protests in Hong Kong are still going on, and it is said that the HKSAR government is considering using the Emergency Regulations Ordinance to handle the situation. Does the central government think it is appropriate to apply the emergency law in the current situation? Under what conditions would it be appropriate to invoke the law? If invoked, what impact will it have on Hong Kong society? In addition, given the three-month-long protests, has the central government set a bottom line for dealing with the situation? Thank you.

Yang Guang:

My colleague Ms. Xu will answer your questions.

Xu Luying:

Thank you for your questions. We have noted that there are discussions in Hong Kong about whether the HKSAR government should invoke the Emergency Regulations Ordinance to deal with the current situation. We have seen that Hong Kong is facing the most severe and urgent situation since its return to the motherland. Despite some positive changes, violent activities are still continuing. They have severely undermined the social order, economy and people's livelihood, and challenged the bottom line of the "one country, two systems" principle. Currently, the most pressing and overriding task of Hong Kong is to "stop violence, end the chaos and restore order." We have also noted that many social organizations and citizens have called for stronger measures, including introducing an anti-mask law, to stop the violence and chaos, and restore social order as soon as possible. The central government fully supports the chief executive and the HKSAR government in using any necessary measure in accordance with law to put an end to violence and chaos, guarantee the security and rights of all citizens, and safeguard the dignity of the rule of law in Hong Kong.

As to whether the central government has set a deadline for dealing with the situation in Hong Kong, I think it is a common aspiration of the central government and all Hong Kong people to end the chaos and restore order as soon as possible. The sooner the better. As long as chaos exists, people will continue to pay the price. This concerns the prosperity and stability of Hong Kong as well as the well-being of seven million Hong Kong people. This aspiration is the biggest appeal being voiced by Hong Kong people. Thank you for your questions.

ITAR-TASS News Agency:

The protestors have put forward five major demands and claimed that "all five demands must be fulfilled." Several days ago, 24 members of the Hong Kong Legislative Council signed a letter to call for a restart of Hong Kong's political reform to practice "dual universal suffrage." What is the attitude of the central government towards the five major demands? Is it acceptable for the central government that there must be a full withdrawal of the proposed extradition bill and an independent investigation into police actions? Did Chief Executive Carrie Lam refuse those demands under central government instructions? Thanks.

Yang Guang:

I didn't expect you are so good at Chinese. You have made your questions very clear. What I want to say is that, in any civilized and law-based society all demands must be proposed in accordance with the law. Over the past two months, some radical protestors have, in the name of their "five major demands," intentionally disregarded the rights to a peaceful life of Hong Kong people and the overall stability and prosperity of Hong Kong, unscrupulously committed violence, trampled on Hong Kong's rule of law and social order, and challenged the bottom line of the "one country, two systems" principle. This has damaged the interests of not only Hong Kong but the whole country. They are by no means expressing demands; what they are doing is engaging in "political intimidation" and "political coercion" through and through. As I mentioned just now, their acts have nothing to do with the proposed extradition bill. They have taken aim at the HKSAR government in a bid to seize the administrative power of Hong Kong and render the "one country, two systems" principle defunct. In fact, their ultimate demand is "dual universal suffrage." Here, in order to put an end to misunderstanding and misinterpretation, I would like to elaborate on this matter of "dual universal suffrage."

First of all, I must reaffirm one fact: It is after Hong Kong's return to the motherland that Hong Kong's democratic system was truly established and developed. I must point out another equally important fact: the aim of the selection of the Chief Executive and all the members of the Legislative Council by universal suffrage has been stipulated in the Basic Law. Since the establishment of the HKSAR, the central government has been supporting the HKSAR in steadily and rapidly developing democracy in accordance with the Basic Law and other relevant decisions made by the Standing Committee of the National People's Congress.

As everyone knows, a decision made by the Standing Committee of the National People's Congress on Dec. 29, 2007 stipulated the method for selecting the Chief Executive of the HKSAR by universal suffrage as of 2017, and also selecting all members of the Legislative Council by universal suffrage after the selection of the Chief Executive by universal suffrage is realized. As a result, the decision established a timetable for "dual universal suffrage." Another decision made by the Standing Committee of the National People's Congress on Aug. 31, 2014 provided a framework and core elements for the method of selecting the Chief Executive by universal suffrage. The Aug. 31 decision won the support and recognition of most Hong Kong residents. Unfortunately, due to the opposition of some Legislative Council members, the universal suffrage bill drafted according to the Aug. 31 decision did not win the necessary two-thirds majority vote. Therefore, Hong Kong has lost a precious opportunity to achieve the selection of the Chief Executive by universal suffrage 20 years after its return to the motherland. In other words, the culprits hindering Hong Kong's democracy are actually the opposition themselves.

Why did the opposition veto the bill against the will of the majority? To put it bluntly, the universal suffrage system provided by the Aug. 31 decision is not what they wanted. What do they want, then? As a matter of fact, they preferred a universal suffrage system exceeding the limits of the Basic Law and the relevant decisions of the Standing Committee of the National People's Congress, and could help them select a Chief Executive representing their position and, at the same time, not being accountable to the central government, all of which will pave the way for them to ultimately seize administrative power in Hong Kong. Any mechanism that can help achieve this goal would be what they call "real universal suffrage"; any mechanism that falls short would be their so-called "fake universal suffrage."

Today, I must make it clear that anyone who harbors this illusion is doomed to fail. Whenever Hong Kong's political reform is restarted, Hong Kong's universal suffrage must be in line with the Basic Law and the relevant decisions made by the Standing Committee of the National People's Congress.

I must also make it clear that Hong Kong's universal suffrage must adhere to a basic principle: it must be in line with Hong Kong's political status. What does this mean? Let me give you a brief introduction. The first sentence of the Preamble of the Basic Law reads: "Hong Kong has been part of the territory of China since ancient times." Article 1 of Chapter 1 of the Basic Law provides that "the Hong Kong Special Administrative Region is an inalienable part of the People's Republic of China." Article 12 of Chapter 2 (Relationship between the Central Authorities and the Hong Kong Special Administrative Region) of the Basic Law provides that "the Hong Kong Special Administrative Region shall be a local administrative region of the People's Republic of China, which shall enjoy a high degree of autonomy directly under the Central People's Government." Each of these forms the first sentence of the corresponding chapter, which tells their importance. The three sentences completely and clearly define Hong Kong's political status. Hong Kong's political system, including its universal suffrage system, must abide by and serve the purpose of its political status. As a result, Article 43 of Chapter 4 (Political Structure) of the Basic Law, again in the first sentence, provides that "the Chief Executive of the Hong Kong Special Administrative Region shall be accountable to the Central People's Government and the Hong Kong Special Administrative Region in accordance with the provisions of this Law." That is the most important duties and mission of the Chief Executive. Then, Article 45 of the Basic Law provides that the Chief Executive of the Hong Kong Special Administrative Region shall be selected by universal suffrage upon nomination by a broadly representative nominating committee in accordance with democratic procedures. After this, the Chief Executive shall be appointed by the Central People's Government. Each of the three links - nomination, universal suffrage, and appointment – is indispensable and plays a substantive role. That is the real meaning of universal suffrage in Hong Kong.

Any universal suffrage system that meets the abovementioned requirements is real universal suffrage. Only in this way can we select a Chief Executive who loves the country and loves Hong Kong, and can win the trust of the central government and the recognition of the Hong Kong people. Only by doing this can we ensure that the "one country, two systems" principle will be comprehensively and precisely implemented. As to Hong Kong's universal suffrage, there is no other option. Above all, we must stick to the "one country, two systems" principle, the Basic Law and the relevant decisions made by the Standing Committee of the National People's Congress.

As to the other demands, I have dealt with them in my previous remarks. I would like to stress that the biggest demand and the strongest appeal right now is to "stop violence and restore order." This is the most important and most urgent task, and this is what we should do to actively and earnestly respond to the demands of the people. We will unswervingly support Chief Executive Carrie Lam and the HKSAR government in exercising their respective power and functions in accordance with the law, the Hong Kong police in implementing the law rigorously, and the relevant government departments and judicial organs in fulfilling their duties and punishing violent criminals. We hope every citizen who loves Hong Kong will act to boycott violence and support the action of the HKSAR government and the Hong Kong police. Thank you!

CCTV:

As we noticed, the HKMAO said there are signs of terrorism and acts bordering on terrorism in Hong Kong, and that the movement carries the characteristics of a "color revolution." What does the central government think of the nature of the movement? What measures different from the past will be taken? Thank you.

Yang Guang:

Thank you. For your question, I already elaborated on this at the beginning. Therefore, here I would like to add a few more words.

Have the violent crimes in Hong Kong begun to show signs of terrorism? We should examine the facts to obtain the answer. In the past three months, a small number of rioters committed crimes recklessly, in particular, hurting police officers with various heinous acts, and also smashed up shops, paralyzed the airport, disturbed the running of subways and illegally imprisoned innocent citizens. We noticed that the weapons they have been using in their attacks on the police have become increasingly serious and are already in the lethal category. They also used ignominious means to disclose the personal information of individual police officers and their families on the internet, which is illegal. Incomplete statistics show the personal information of about 1,600 police officers have already been disclosed, and some people have talked online openly about killing police officers and bullying their families. Let's then take a look at what happened on Aug. 31. Even if the petrol bombs they threw in the past might be said to be a few, this time, they threw about 100 petrol bombs in the downtown area. They also vandalized subway facilities, and broke into the control room of the subway in a sabotage operation threatening the safe operation of the subway.

They also put forward the slogan "Lan Chao." I did not know the meaning of these two characters at the beginning, so I asked my friends in Hong Kong. They told me it means "pulling others along to die together." I do not know how you feel after hearing this. However, I smell the breath of terror and madness. Another vicious manipulator openly threatened that just let it be even though the current violent criminal activities seriously damage Hong Kong's status as an international financial center. It is evident that they have already reached a point where they will do whatever it takes to achieve their political ends. There are people from more than one organization who have pointed out that their acts now obviously have the nature of terrorism. As for "color revolution," the facts are even clearer. We can see a small number of rioters repeatedly using slogans with "Hong Kong independence" overtones. One example is the ludicrous slogan of "Restoration of Hong Kong, Revolution of the Times," which I mentioned last time. I also noticed recently that they proposed at a rally that "U.K., U.S., Hong Kong in Alliance, To People Sovereignty Belongs." But what is Hong Kong? I already gave a very detailed introduction that Hong Kong is a special administrative region of the People's Republic of China. What qualifies Hong Kong to ally itself with other countries? As for "To People Sovereignty Belongs," Hong Kong's sovereignty belongs to China and the 1.4 billion Chinese people. Is there any point in discussing this? It can be seen that these people are either ignorant of the laws and the identity of Hong Kong, or they openly want to turn Hong Kong into an independent or semi-independent political entity. Therefore, four words can be seen on their faces, "Fan Zhong (literally means Anti-China)" on the left and "Gang Du (literally means Hong Kong independence)" on the right.

We also noticed that, in the past three months, some Western politicians made frivolous remarks on Hong Kong affairs, sparing no effort to support a few rioters and "Hong Kong independence" activists and glorify their actions. It can be said that they have played a role in aggravating such actions. Therefore, some activists already demonstrate obvious characteristics of "color revolution." Their purposes are to paralyze the HKSAR government, take over the administration of the HKSAR, and make "one country, two systems" exist in name only.

I have one point I wish to make clear. We deeply and clearly know that the majority of the citizens of Hong Kong, including many young students, who were involved in peace marches and rallies, and put forward some other appeals, are entirely different from those who have broken the law, committed violent crimes, and challenged the bottom line of "one country, two systems." However, we must point out that the direction of the current turmoil in Hong Kong is not determined by their will. Under the manipulation of a few rioters and vicious manipulators behind the scenes, the current situation has completely deteriorated. That is why we say that it has come to a crucial moment to uphold the principle of "one country, two systems" and safeguard the prosperity and stability of Hong Kong. All those who love Hong Kong should take concrete actions to draw a clear line between themselves and criminals, and say no to violence and those who undermine the bottom line of the "one country, two systems." Thank you.

Phoenix TV:

My question is about student strikes. A new semester began yesterday. Many students at middle schools and colleges in Hong Kong boycotted classes. What is the attitude of the Hong Kong and Macao Affairs Office about this situation? We have also noted that some middle school students got involved in violent riots. It is said that primary and middle school education in Hong Kong is the main reason behind this phenomenon. What is your opinion? Thank you.

Yang Guang:

Thank you. Let me give the floor to my colleague.

Xu Luying:

Thank you for your question. We have noted that some opponents, "Hong Kong independence" activists and a few radical forces are doing their utmost to instigate students to boycott classes. We all wonder why they behave this way. I think they just want to bring their street protests into campuses, kidnap young students on their chariots, make them as political chips to threaten the HKSAR government and the central government, and instigate student and merchant strikes on a larger scale, so as to spread the chaos and create a more destabilized and dangerous situation. How vicious their intention is!

School is a place to acquire knowledge and cultivate personality. Dr. Sun Yat-sen once said that school is the source of evolution of civilization. At such a holy place, some forces by all means have stretched out their hands towards juveniles who have immature minds and are entirely unsophisticated, so as to realize their ulterior political motives. We have seen cases that have shocked us. Since June this year, a total of 15 juveniles under the age of 16 have been arrested. The youngest is only 12, with iron bars and paint sprayers found on his body. On Aug. 31, the police arrested a 13-year-old juvenile who hid two gasoline bombs on his body. How horrible! We clearly noticed that the participants, black hands behind the riots, especially the schemers and organizers, disregarded the lives, health and futures of the juveniles, making them as cannon fodder and victims of their violent riots, and providing fresh "political fuel" for the forces with ulterior motives. These are savage misdeeds and must be curbed with exercise of all due power.

We are grieved to see so many middle school and college students participating in violent riots this time. Schools are the main front of education and teachers are the first person responsible for school education. The Code of the Education Profession of Hong Kong stipulates that teachers have the responsibility and obligation to cultivate a student's ability in objective and justified analysis and offer students equal opportunities to receive education. But we have also seen that some teachers took advantage of their power and resources to disseminate seeds of violence and hatred, and instigate students to boycott classes, breaking the bottom line of the education profession, and even ignoring teaching ethics and that of a decent human being. This is totally unacceptable and should be punished severely based on laws.

We have also noted that the HKSAR government and Education Bureau have made clear that they are against any kind of student strike, and emphasized that no one is allowed to make schools a place to voice political appeals. Many education societies published joint announcements to appeal to teachers to stick to their positions. Some citizens also called for all people to refute the idea of boycotting classes and save the juveniles from further damage. Since Sept. 2, all schools have been operating as usual, being uninfluenced by the so-called student strikes, and some schools held flag-raising ceremonies. Therefore, what they did was unpopular. The central government firmly supports the HKSAR government, school faculties and citizens in Hong Kong to take effective measures to restrain anyone from instigating, inciting, threatening, or seducing young students to take part in violent political activities for any reason whatsoever, so as to protect the rights of every student to receive a good education and ensure schools can remain clean and peaceful. Thank you.

The Yomiuri Shimbun:

My question is about the Basic Law of Hong Kong. Maria Tam Wai-chu, deputy director of the Basic Law Committee of HKSAR of the Standing Committee of the National People's Congress, published an article in the People's Daily on Aug. 30, referring to the provisions of Article 18 of the Basic Law, pointing out that any one of the provisions indicate that the garrison is not a scarecrow in the military camp, rather, it is an important force to comprehensively and accurately implement the "one country, two systems" policy. Article 18 of the Basic Law stipulates that the Standing Committee of the National People's Congress decides whether Hong Kong will enter a state of emergency, and the central government may issue an order to implement the relevant national laws in Hong Kong. May I ask the spokesman, according to the provisions of Article 18 of the Basic Law, can the garrison and armed police be dispatched in this case? Thank you.

Xu Luying:

Thank you for your question. "To bridle turmoil and curb violence, bring Hong Kong back to order" is the most overwhelming, most important and most urgent task of Hong Kong. The central government unswervingly supports Chief Executive Carrie Lam to lead the HKSAR government in governance according to the rule of law, unswervingly support the Hong Kong police force in its strict law enforcement, and unswervingly support the relevant departments and judicial organs of the HKSAR to bring criminals to due justice as soon as possible and safeguard the law and order in Hong Kong. We believe that with the support of the central government and the joint efforts of the Hong Kong people, the HKSAR government has the will and ability to take all necessary measures "to bridle turmoil and curb violence, and bring Hong Kong back to order" as soon as possible. The central government will absolutely not allow the chaos in Hong Kong to continue indefinitely. If the situation in Hong Kong further deteriorates and becomes a disturbance that cannot be controlled by the HKSAR government and endangers the sovereignty and security of the country, the central government will not just sit by and watch.

According to the Basic Law and the Garrison Law of the HKSAR, the duty of the PLA Hong Kong garrison is to safeguard the country's sovereignty, security, territorial integrity and Hong Kong's security. Article 14 of the Basic Law stipulates that the central government is responsible for the defense of the HKSAR. The HKSAR government may, when necessary, request the central government to let the garrison assist in the maintenance of public order and disaster relief. Article 18 of the Basic Law also stipulates that if there is a disturbance that cannot be controlled by the HKSAR government and endangers national unity or security, the Standing Committee of the National People's Congress may decide on HKSAR entering a state of emergency. The central government may issue an order to implement the relevant national laws in Hong Kong. I think, after reading the provisions of Articles 14 and 18 to you, you should have a very clear answer to your questions. In the case of an emergency, national laws may be implemented in HKSAR according to the needs.

There is now a view in society that the dispatch of troops means the end of "one country, two systems." I want to say that this is completely wrong. No matter whether it is the central government that dispatches a garrison to assist in the maintenance of public order or for disaster relief at the request of the HKSAR government, or it is the Standing Committee of the National People's Congress that decides that HKSAR enters a state of emergency, both are implementing a specific provision of the Basic Law under the framework of "one country, two systems," which is an integral part of HKSAR's constitutional order. Thank you.

Sing Tao Daily:

The decision to build Shenzhen into a pilot demonstration area of socialism with Chinese characteristics is based on what situation and deliberation of the central government? Is that implying a replacement of Hong Kong's unique roles? Thank you.

Yang Guang:

The guideline issued by the Communist Party of China Central Committee and the State Council to support building Shenzhen into a pilot demonstration area of socialism with Chinese characteristics marks a new era of socialism with Chinese characteristics. It is a magnificent strategic move to deepen reform and expand opening up in all-round areas from a higher threshold with higher levels to reach higher goals. This guideline will benefit the construction of the Guangdong-Hong Kong-Macau Greater Bay Area and help enrich the new practice of the principles of "one country, two systems."

We have noted that the guideline has evoked great concerns from Hong Kong and the international community, with someone worrying about the central government's inclination to replace Hong Kong with Shenzhen. This is definitely a misinterpretation. We think the guideline is de facto conducive to Hong Kong. Being put into scrutiny, the guideline features quite a number of items concerning Hong Kong's development in the long run and is conducive to maintain local stability and prosperity. This shows the consistent care and support from the central government to Hong Kong. Now please allow me to give you several examples. The guideline clearly stipulates that we should take the precious opportunity provided by the construction of the Greater Bay Area to enhance the function of core developmental engines. This not only refers to the higher requirements placed on Shenzhen, but also higher expectations placed on Hong Kong. The guideline also clearly stipulates that the country will continue to deepen the reform and opening up with institutional innovation-centered moves implemented in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone where the access of openness to Hong Kong and Macao should be expanded and in the Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone where construction is expected to accelerate. It will also explore the development in concerted efforts, innovate science and technology management mechanism and facilitate the high-speed and convenient flows of elements including personnel, capital, technologies and information. The section has accentuated the key points for the development of the Greater Bay Area where it navigates the routes heading to the promising future. There are also concrete measures formulated by the guideline to fortify the industrial cooperation of digital innovation among Guangdong, Hong Kong and Macao and create more access to medical technologies developed with Hong Kong or Macao investments. Meanwhile, it also points out that the access to Hong Kong and Macao will open even wider, in so far as allowing Hong Kong and Macao residents who work or live in Shenzhen to enjoy equal treatments in terms of livelihood, which unfetters them from troublesome procedures.

The central government supports Hong Kong and Macao to integrate into the country's strategic development from which they are enabled to give full play to their unique and irreplaceable advantages. This will definitely not be changed. However, it is up to Hong Kong to strive for the opportunities which could slip quickly in irrevocable ways. A Chinese verse written in the Tang Dynasty (618-907), says, "Water tides never stop to wash away the sands, and a new wave always rises when the old one has yet to be splashed." Hong Kong is unable to bear the social turmoil, and development is its only welfare. So far, a small number of rioters have sabotaged the prosperity and stability in Hong Kong simply in order to achieve their political agendas. I think the majority of people in Hong Kong will turn against the rioters' virulent schemes which endanger the fundamental and personal interests of the local residents and the future of the city. Given the approximately 7 million people in Hong Kong, is there anything more important than working for sound development? Thank you.

China Daily:

On Aug. 31, US President Donald Trump tied the Sino-U.S. trade war to the situation in Hong Kong. He once again urged China to handle the Hong Kong protests in a "humane fashion." In addition, a statement issued at the G7 summit that ended on Aug. 26 stated that "the G7 reaffirms the existence and importance of the Sino-British Joint Declaration of 1984 on Hong Kong and calls for violence to be avoided." What's your comment on this? Thank you.

Yang Guang:

Thank you. It must be stated that the UK has no right to "supervise" Hong Kong affairs. According to the general principles of international law and the basic norms of international relations, all countries have sovereign equality and their internal affairs are free from foreign interference. After the handover, Hong Kong became a local administrative region of China. Hong Kong affairs are China's internal affairs and no nation has the right to interfere. We have stated that position many times.

However, over the past three months, we have seen that some politicians in the West, especially in the United States, are constantly making irresponsible remarks about Hong Kong. I will not list them separately here today because there are too many. I examined their remarks seriously. No matter what they said, the ideas and the way they are expressed can be summarized as the following two types. For one thing, they lied through their teeth in a serious manner, talked in a way turning black into white, disregarded the facts, and confused right and wrong. Whenever the police strictly enforced the law, they would say that the police were wrong and used excessive force. Whenever there was violence instigated by radicals in demonstrations, they would express sympathy and understanding. For another, they constantly supported and agitated a few rioters, fearing they may lose their nerve and chicken out. I think, after all, for three months, their various remarks centered on nothing more than these two types. I believe that if there is a riot in their own country, like that happening in Hong Kong, they would never dare to speak like this to their own police. It can be seen that the purpose of these people is definitely not for the bright future of Hong Kong. They just want to fish in troubled waters when they see some confusion in Hong Kong. All they want is to mess up Hong Kong and create trouble for China. That is all. I want to warn these Western gentlemen that Hong Kong is China's Hong Kong and we will never allow any foreign interference in its affairs. Their tricks were used and worked elsewhere, leaving widespread devastation in those areas; however, in Hong Kong, the land of China, this set of tricks won't work. Stop daydreaming!

Speaking of this, a few lines from the poem of Chairman Mao occurred to me: "On this tiny globe, a few flies dash themselves against the wall, humming without cease, sometimes shrilling, sometimes moaning." This is indeed an apt metaphor.

Xi Yanchun:

The conference has been going on for more than an hour. Do reporters from Macao want to ask questions? The reporter in the third row, please.

Macao Asia Satellite Television:

On August 25, Ho Iat Seng was elected fifth-term chief executive-designate of China's Macao Special Administrative Region (SAR). What are the expectations of the central government for the new Macao Chief Executive in his five-year tenure?

Yang Guang:

Thank you for your question. Mr. Ho Iat Seng qualifies for the central government's standard of a SAR Chief Executive in that he/she must be trusted by the central government; must love the country and Macao; must have capability in terms of governance; and must be supported by the people in Macao. Ho's success in being elected with a majority has fully demonstrated that he is widely supported and recognized by all sectors of Macao society. The central government plans to implement Ho's appointment procedure in accordance with the law.

This year marks the 20th anniversary of Macao's return to the motherland. The practice of "one country, two systems" in Macao has come to a new historical starting point. We hope that all sectors of society in Macao support Mr. Ho Iat Song and carry forward the fine tradition of loving the motherland as well as Macao, fully and faithfully implementing the principle of "one country, two systems." We also hope they could firmly safeguard the authority of the Constitution and the Basic Law, working to improve the level of public governance in SAR and promoting appropriately diversified economic development. In this way, Macao is being encouraged to actively participate in the national developing endeavor, and, as a result, the practice of "one country, two system" will have even greater success in Macao. Thank you.

Xi Yanchun:

Let's give today's last question to the foreign reporter sitting in the back row.

Channel NewsAsia:

This weekend, Hong Kong has witnessed demonstrations for the 13th week. The demonstrators and the HKSAR government are still deadlocked. As the violence continue to escalate, and as the remarks of the Chief Executive have been caught on record, how will Beijing help the Hong Kong SAR government restore normality and order as well as lasting peace and security in Hong Kong? In addition, what is Beijing's view on the reports on the Hong Kong incident overseas on the internet and in traditional media, and what the actions will Beijing take to provide a clearer public understanding?

Xu Luying:

Thank you for your questions. You've raised several different questions. The first is what Beijing should do to help the Hong Kong SAR government restore order. Currently, the incident which originated from the proposed legal amendments to the Fugitive Offenders Ordinance has fundamentally changed regarding the nature of the protests. The most pressing and overriding task at the moment for Hong Kong is to stop violence, end chaos and restore order. The central government continues its staunch support for the HKSAR government led by Chief Executive Carrie Lam in governing the Hong Kong SAR according to the law, for the Hong Kong police in strict and just law-enforcement. Speaking of which, I'd like to say a few things about the Hong Kong police. As you've mentioned, the demonstrations, protests and violent clashes have lasted for 13 weeks already. We have seen that it is the Hong Kong police who have really been at the forefront in stopping violence and ending chaos. However, it is clear to everyone that the Hong Kong police have also become the targets of attack by these gangsters in extremely cruel and inhumane ways. So far, more than 200 policemen have been injured, one of whom lost part of his finger. In addition, according to incomplete statistics, in the three months since the beginning of the Hong Kong incident, the personal information of some 1,700 policemen, as well as their family members, has been illegally exposed and spread. Violence has caused severe physical and psychological damage to policemen and their family members. Nevertheless, under such circumstances, huge pressure and an urgent situation, the Hong Kong police have still maintained their professionalism and restraint when facing protestors. They applied a minimum level of armed forces, and strictly followed the rules of law-enforcement. Therefore, we believe that the Hong Kong police are worthy of the honor as the best police force in the world. In this regard, the central government firmly supports all necessary measures taken by the Hong Kong police and the HKSAR government to combat violence and end crimes. The central government continues its staunch support for all sectors who are assisting the Hong Kong police for law-enforcement, and the central government will continue to do its best to protect and care for the Hong Kong police as well as their family members. This is my response to your first question.

We have also seen that, during these 13 weeks of demonstrations, there are also citizens who seek to express their demands in a peaceful and legal way. We must distinguish between them and those engaged in criminal acts that create a violent terrorist attack and undermine the bottom line of the "one country, two systems" principle. The demands they have raised, especially the deep-seated problems reflected in the activities of these past two months, need our great attention. We hope Hong Kong society can focus on developing the economy, improving people's livelihood, rationally expressing their own demands, building consensus and seeking solutions through cooperative brainstorming. The central government will, as always, support Hong Kong in developing its economy, improving people's livelihood and integrating its own development into the overall development of the country.

Since the beginning of this year, the relevant central government departments have introduced a series of policies to Hong Kong and Macao to support the development of the Guangdong-Hong Kong-Macao Greater Bay Area. These policies are aimed at supporting the construction of an international technology and innovation hub, facilitating the flow of factors of production, promoting market integration, and making it easier for Hong Kong and Macao residents to live and work on the Chinese mainland, etc. Staged progress has been made in the implementation of all the policies. Looking forward, the relevant central government departments will continue to adopt more practical measures conducive to the development of Hong Kong and Macao as well as mainland-Hong Kong-Macao cooperation and exchanges. With strong support from the motherland, I believe Hong Kong will surly maintain its prosperity and stability. However, in the final analysis, it depends on the efforts made by Hong Kong itself as to whether it can seize the opportunities presented by the development of the motherland and make good use of the preferential policies and measures introduced by the central government.

At last, I would like to give my response to the question raised by the journalist from Phoenix TV. During nearly three months of protests and violent activities, we have seen several incidents where violent radicals insulted and burnt national flags, threw them into the sea; they also tarnished the national emblem. While strongly condemning the unscrupulous behavior by a very small number of "Hong Kong independence" activists, we should ask ourselves why such incidents have happened time and again in Hong Kong, a special administrative region of China. We should ask ourselves whether we need to reflect on the national education being provided in Hong Kong, especially the cultivation of a sense of nationhood. I think it is high time we pay high attention to the national education, to the cultivation of a public sense of nationhood, and take effective measures to solve problems in society. Therefore, after the violence and chaos end and order is restored, both the HKSAR government and all Hong Kong people need to take enhancement of national education as an important task. It is a responsibility shared by the whole society and also the most responsible conduct towards the next generation of Hong Kong people. Thanks.

Xi Yanchun:

Thanks to the two speakers. Thank you all. This press conference is concluded.