Read in Chinese

Speakers: 

Mr. Lu Lei, deputy governor of the People's Bank of China (PBC)

Ms. Li Hongyan, deputy administrator of State Administration of Foreign Exchange (SAFE)

Mr. Zou Lan, director general of the Monetary Policy Department of the PBC

Mr. Peng Lifeng, director general of the Credit Market Department of the PBC

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

Chairperson:

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

Date:

Sept. 5, 2024

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Lu Lei, deputy governor of the People's Bank of China (PBC), and Ms. Li Hongyan, deputy administrator of State Administration of Foreign Exchange (SAFE), to brief you on relevant work and to take your questions. Also present today are Mr. Zou Lan, director general of the Monetary Policy Department of the PBC, Mr. Peng Lifeng, director general of the Credit Market Department of the PBC, and Mr. Xiao Sheng, director general of the Capital Account Management Department of SAFE.

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

Lu Lei:

Thank you. Good afternoon, everyone. I'm delighted to be here for this face-to-face exchange. I, alongside my colleagues, will give you a briefing on the financial work being done to promote high-quality development.

First of all, I would like to express my heartfelt gratitude for your long-term interest in and reporting on the reform and development of the financial sector, including the work of the PBC.

The Party Central Committee with Comrade Xi Jinping at its core attaches great importance to financial work. The third plenary session of the 20th Central Committee of the Communist Party of China (CPC) has made comprehensive arrangements to deepen the reform of the financial system, charting the course and setting the goals for optimizing financial services and promoting high-quality development. The PBC has thoroughly implemented the decisions and deployments of the Party Central Committee and the State Council, adhered to the fundamental principle of providing financial services to the real economy, and comprehensively balanced the relationship between short term and long term, steady growth and risk prevention as well as internal and external factors, effectively promoting the construction of a high-quality development pattern featuring mutual reinforcements for the real economy and the financial system. Since the beginning of this year, we have focused on the following aspects, which I would like to share with you:

First, in accordance with the requirements of a prudent monetary policy that is flexible, moderate, precise and effective, we made three significant monetary policy adjustments in February, May and July, adopting comprehensive measures in terms of aggregate, price, structure and transmission to maintain reasonable and sufficient liquidity and to promote steady declines in social financing costs. We have given guidance on optimizing the credit structure, improved the efficiency of fund utilization and effectively supported economic recovery and growth. The RMB exchange rate has remained generally stable at an adaptive, balanced level.

Second, we have fully devoted ourselves to the five major areas — technology finance, green finance, inclusive finance, pension finance and digital finance — and enhanced financial support for major strategies, key areas and weak links. At the macro-policy level, we have emphasized top-level design and systematic planning, formulated and issued policy documents, and strengthened statistical monitoring and evaluation of effects. At the working mechanism level, we are committed to improving the incentive compatible mechanism. We have guided financial institutions to make full use of various structural monetary policy instruments and continuously enhance their financial service capabilities. At the financing channel level, we have supported enterprises in financing through the bond market; and we have cooperated with relevant departments to facilitate fundraising, investment, capital management and exit in the venture capital industry, with special attention given to supporting the development of startups.

Third, we have continuously improved the risk prevention and disposal mechanism and ensured that no systemic financial risks arose. To ensure both development and security, we have worked with relevant departments to effectively address and resolve financial risks in key areas, and continuously strengthen the capacity building in financial risk monitoring, early warning and assessment, with a particular focus on the construction of an early correction mechanism with hard constraints, risk prevention and control of small and medium-sized financial institutions as well as risk prevention through reform. By establishing a financial risk disposal mechanism featuring equal rights and responsibilities and incentive-constraint compatibility, we have strengthened the resource guarantee for risk disposal and woven a tight and solid net for financial safety. Currently, the number of high-risk small and medium-sized banks has decreased by nearly half from its peak.

Fourth, we have continuously promoted high-standard opening up of the financial sector and actively participated in international financial governance and cooperation. By the end of July, overseas investors held 4.5 trillion yuan ($637.68 billion) of Chinese bonds, a record high. The RMB accounted for 6% of global trade financing, ranking second. We will continue to strengthen communication and cooperation with international financial organizations and monetary authorities of major economies, actively participate in international financial governance, and enhance our capacity for opening up through expanded international cooperation.

In summary, the monetary policy and the five major areas of finance are the footholds for the PBC to promote high-quality economic and social development through financial services, while risk prevention and control and financial openness are inherent requirements for promoting the high-quality development of the financial industry itself. We are about to celebrate the 75th anniversary of the People's Republic of China this year. The PBC will thoroughly implement the guiding principles from the third plenary session of the 20th CPC Central Committee, unwaveringly follow the path of financial development with Chinese characteristics and promote high-quality development of the economic and financial sector.

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

Xing Huina:

Thank you, Mr. Lu. I will give the floor to Ms. Li Hongyan for introduction.

Li Hongyan:

Good afternoon, everyone. First of all, I would like to express my heartfelt gratitude for your consistent interest in and support for the administration of foreign exchange. Since the 20th CPC National Congress, SAFE has resolutely implemented the decisions and arrangements made by the Party Central Committee with Comrade Xi Jinping at its core. We have thoroughly exercised a political, people-oriented approach to financial work and continuously promoted reforms and opening up in the foreign exchange sector, providing strong support for high-quality economic development. This is mainly manifested in the following five aspects:

First, the level of cross-border trade facilitation has been further improved. We have continuously optimized the management of trade-related foreign exchange receipts and payments and canceled the administrative licensing for the registration of foreign trade businesses, which is expected to benefit more than 100,000 business entities this year. We have supported the development of new forms of trade, encouraging banks and payment institutions to handle cross-border e-commerce trade settlements based on electronic information. In the first seven months of this year, more than 500 million transactions of this kind were processed, benefiting over 1.2 million micro and small businesses. Additionally, we have enhanced payment convenience for foreigners coming to China, achieving full coverage of foreign currency exchange services in key airports, hotels, scenic areas for cultural tourism and other major venues.

Second, high-quality opening up of capital accounts has been steadily advanced. We have supported the innovative development of science and technology enterprises and extended the policy that facilitates cross-border financing for enterprises from 17 provinces and cities to the entire country. We have optimized and upgraded management policies for cross-border capital centralized operations among multinational corporations, improving their capital allocation efficiency. We have expanded the high-standard institutional opening up of financial markets and revised the Regulations on the Domestic Securities and Futures Investment Capital of Foreign Institutional Investors, further facilitating international investment in the domestic capital market.

Third, the foreign exchange market has seen further advancements in its depth and scope. Currently, China's foreign exchange market offers trading in over 40 currencies, covering all major international foreign exchange products. I'd like to share some data: in the first seven months of this year, the total transaction volume in China's foreign exchange market surged to almost $23 trillion, an increase of 8.7% year on year. In the same period, more than 20,000 businesses engaged in exchange rate hedging for the first time, which enabled more companies to manage exchange rate risks with foreign exchange derivatives.

Fourth, the governance system and governance capacity for foreign exchange have been continuously improved. We have strengthened macroprudential management and have guided market expectations, so as to maintain foreign exchange trading at a rational and orderly manner. We have collaborated with relevant authorities to severely crackdown on illegal and irregular foreign exchange activities to maintain a healthy market environment. Moreover, we have advanced reforms with banks' foreign exchange business in a prudent manner, encouraging banks to reengineer the process for foreign exchange business, so as to set up a comprehensive business framework that includes performing due diligence before the business process, differentiating in-process reviews and post-monitoring reports. By doing this, we are aiming to foster a more open and secure foreign exchange management system.

Fifth, the management of foreign exchange reserves with Chinese characteristics has been further strengthened. China has maintained its foreign exchange reserves above $3 trillion in recent years, making it the world's largest for 19 consecutive years. This has made a positive contribution to stabilizing market confidence and supporting the real economy. 

Going forward, SAFE will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee and will further deepen the reform and high-level opening up of the foreign exchange field. We are committed to the path of financial development with Chinese characteristics and will promote the high-quality development of foreign exchange management, so as to help advance Chinese modernization. 

Xing Huina:

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

CCTV:

China's central bank, as mentioned previously, has conducted a series of supportive monetary policies this year. What results have these policies yielded so far? In what ways will monetary policy continue to support high-quality economic development?

Lu Lei:

Thank you for your questions. We appreciate your interest in monetary policy, including its implementation, outcomes and future course. I've shared some information about our monetary policy previously, so I'd like to offer more specific information in response to your questions.

The PBC has been firmly committed to the decisions and arrangements of the CPC Central Committee and the State Council, implementing a sound monetary policy in a flexible, appropriate, targeted and effective manner. Notably, we've strengthened counter-cyclical adjustments, effectively boosting the recovery trend for the economy and high-quality development. I'd like to provide a detailed breakdown in three areas. 

The first area is about policy implementation. On the one hand, aggregate monetary policy continues to take effect. At the beginning of the year, monetary policy was front-loaded, playing its role in keeping expectations stable and boosting confidence. We have cut the reserve requirement ratio by 0.5 percentage points as well as have lowered relending and rediscounting rates for the agriculture sector and small businesses by 0.25 percentage points, which have helped to reduce banks' funding costs. As a result, the over-five-year loan prime rate (LPR) was reduced by 0.25 percentage points, providing strong support for a good start to the development of macroeconomy. After the third plenary session of the 20th CPC Central Committee, the PBC has swiftly implemented reform arrangements, incorporating reforms into macro control and improving the mechanism for market-based interest rate adjustment. We explicitly stated and further lowered the policy interest rate as well as have reduced the open market operation rate for seven-day reverse repurchase agreements by 0.1 percentage points. This has led to a 0.1 percentage points decrease in both the one-year LPR and over-five-year LPR. These measures have been effective in stimulating demand, helping to consolidate and strengthen the momentum of economic recovery. Furthermore, we also directed major banks to reduce deposit interest rates, so as to maintain their capacity to provide services to the real economy in a sustainable manner.

The second area is concerned with the effectiveness of policy implementation. I would say structural policies play a crucial role in this regard. This year, there has been a substantial demand for structural policies. In order to promote the development of sci-tech finance, we have launched a 500-billion-yuan relending program to support technological innovation and upgrades, which has significantly boosted effective investment. We have introduced a comprehensive package of supportive financial policies for the real estate sector, aiming to foster a stable and healthy property market. Recently, we have provided an additional 100 billion yuan in loans to agricultural and small businesses, as well as for disaster relief efforts in the 12 regions that were severely affected by floods, so as to help them resume production and business operations. These measures have yielded positive outcomes. Furthermore, we have stepped up our efforts to foster a favorable monetary and financial environment to sustain economic recovery. Data shows that the growth rate of total social financing remains within a reasonable range. As of the end of July, there has been an 8.2% year-on-year increase in the stock of aggregate financing and an 8.7% year-on-year increase in the balance of yuan-dominated loans, with both of them outpacing nominal economic growth. Social financing costs have also dropped steadily. In July, the weighted average interest rate on newly issued corporate loans stood at 3.65% and the interest rate on newly issued housing loans was 3.4%, representing a year-on-year decrease of 22 basis points and 68 basis points, respectively. Furthermore, the loan structure has continued to improve. As of the end of July, inclusive loans for micro and small enterprises have increased by 17% year on year. Medium- and long-term lending to the manufacturing sector grew by 16.9% year on year, or almost hitting 17%. Loans for enterprises that use special and sophisticated technologies to produce novel and unique products increased by 15% year on year. All three figures have exceeded the 8.7% year-on-year growth rate in total outstanding loans that I mentioned previously.

The third area is about future policy orientation. The PBC will continue to maintain a supportive monetary policy, and make stepped-up efforts to ensure the implementation of existing policy measures, so as to provide stronger support for high-quality economic development. We will continue to focus on the overall quantity, interest rates and structure. In terms of overall quantity, we will make use of various monetary policy tools in a comprehensive manner to keep liquidity conditions ample, and guide banks to achieve stable and sustainable loan growth. We will ensure that the scale of social financing and money supply align with the expected targets for economic growth and price levels. When it comes to interest rates, we will leverage the recent reduction in policy interest rates and loan prime rates to further drive down enterprises' financing costs and households' credit costs. In terms of structure, we will step up efforts to implement existing policy tools and introduce new measures aiming at improving capital use efficiency, providing more and better financial services to support major strategic initiatives, key areas and weak links.

Our policy priorities in the next phase will center around three dimensions: overall quantity, price levels and structure. I'll keep my remarks brief for now. Zou Lan is director general of the Monetary Policy Department and he is available to answer any questions you may have regarding monetary policy. Please feel free to engage with him for more in-depth discussions in this area. Thank you.

Cover News:

The third plenary session of the 20th CPC Central Committee proposed pursuing high-standard opening up. What measures will SAFE take to implement this? Thank you.

Li Hongyan:

Thank you for your question. Studying and implementing the spirit of the third plenary session of the 20th CPC Central Committee is a major political task for both the current and upcoming periods. The resolution adopted at the session made specific arrangements for opening up and sent a clear signal about expanding high-level opening up. We will fully implement the session's decisions and plans, focusing on three main areas:

First, supporting the real economy and enhancing foreign exchange facilitation. Following principles of market liberalization with effective regulation, we'll strengthen credit risk assessment and improve classified management, making operations easier for honest, compliant enterprises. We'll build an open, diverse, full-functioned and competitive foreign exchange market to better leverage market mechanisms. Focusing on fostering new quality productive forces, we will mainly serve tech innovation enterprises as well as micro, small and medium enterprises, integrating efforts across five key financial areas: technology finance, green finance, inclusive finance, pension finance, and digital finance. We'll extend foreign exchange facilitation policies to more high-quality enterprises, stimulating internal motivation and innovation. We'll promote foreign exchange regulatory innovations to adapt to digital and green trade trends, supporting new models like cross-border e-commerce and overseas warehouses. We'll also improve foreign exchange services for foreigners in China, optimize corporate exchange rate risk management, and expand cross-border financial service platforms to enhance service quality and effectiveness.

Second, promoting reform through opening up and pursuing high-level institutional opening in foreign exchange. We'll focus on improving capital account opening quality, advancing foreign direct investment forex management reforms in an orderly manner, attracting more foreign investment, upgrading and expanding multinational corporate capital pool pilots, and optimizing the qualified foreign investor system. We will further expand high-level opening up pilot programs for cross-border trade and investment, implementing forex management innovation policies first in key areas like free trade zones, Hainan Free Trade Port and the Guangdong-Hong Kong-Macao Greater Bay Area. We support the development of international financial centers in Shanghai and Hong Kong and high-quality cooperation under the Belt and Road Initiative.

Third, promoting positive interaction between high-quality development and high-level security, maintaining forex market stability and ensuring national economic and financial security. We will strengthen "macro-prudential + micro-regulatory" management of the forex market, improve monitoring, early warning and response mechanisms for cross-border capital flows, ensure comprehensive regulatory coverage, continue strict crackdowns on illegal activities, and safeguard financial security amid opening up. We'll improve the operation and management of foreign exchange reserves with Chinese characteristics to ensure the safety, liquidity and value preservation and appreciation of reserve assets.

SAFE will implement the session's decisions with a persistent "nail-driving" spirit. We'll enhance reform planning and promotion, strengthen evaluation and follow-up, and support the development of new systems for a higher-level open economy through systemic opening in the foreign exchange sector. Thank you.

Bloomberg:

My question is about interest rate policy. You spoke earlier about the reserve requirement ratio (RRR) cut the PBC made at the start of the year. How much space does the PBC have to cut interest rates further and also to reduce the RRR further this year? And do you see the necessity for that with the economy the way it is now? Thank you.

Lu Lei:

Thank you for your questions. As mentioned earlier, Zou Lan, director general of the Monetary Policy Department of PBC, is here with us. I'll ask Mr. Zou to answer these questions.

Zou Lan:

Thank you for your questions. Adjustments to reserve requirement ratios and interest rates need to be evaluated based on economic trends. Among these, the RRR is a tool for providing long-term liquidity, while 7-day reverse repos and medium-term lending facilities address medium- and short-term liquidity fluctuations. This year, we've also added government bond trading tools. By using these tools comprehensively, our goal is to maintain reasonable and ample liquidity in the banking system. The effects of the RRR cut at the beginning of the year continue to emerge. Currently, the average RRR for financial institutions is about 7%, leaving some room for adjustments.

Regarding interest rates, as Mr. Lu mentioned, the PBC has continued to steadily reduce overall financing costs. Since the beginning of this year, one-year and five-year-plus loan prime rates have decreased by 0.1 percentage point and 0.35 percentage point, respectively, driving a continuous decline in average loan rates. However, factors like the speed of bank deposit shifts to asset management products and narrowing bank net interest margins constrain further reductions in deposit and loan rates. The central bank will closely monitor policy effects and adjust the intensity and pace of monetary policy based on economic recovery, goal achievement and specific macroeconomic issues.

Thank you!

21st Century Business Herald:

I am particularly interested in issues related to inclusive finance. Could you provide an update on the current situation and progress of inclusive finance in China? Moving forward, how will it support high-quality development?

Lu Lei:

I'll answer your questions. Thank you for your interest in inclusive finance. We consider inclusive finance an important part of China's unique financial service system. China, especially in digital inclusive finance, maintains a leading global position. For years, the PBC has taken multiple measures to strongly support inclusive finance development, aiding private, micro, small and medium enterprises, contributing to poverty alleviation and rural revitalization, and better serving social needs. From our observations, the accessibility, coverage and satisfaction of financial services have continuously improved. The benefits of financial reform and development are reaching more and more people.

In supporting private, micro, small and medium enterprises, financial service quality and effectiveness have significantly improved. The PBC has played a key role in policy guidance and incentives, establishing support tools for inclusive loans to micro and small businesses. It has guided financial institutions to enhance their service capabilities for micro, small and medium enterprises and encouraged more credit issuance to meet the needs of private, micro, small and medium enterprises. As of late July, the balance of inclusive loans to micro and small businesses reached 32.1 trillion yuan, up 17% year on year, with 62.39 million credit accounts covering over one-third of business entities.

In supporting comprehensive rural revitalization, we've consolidated poverty alleviation achievements and continued efforts persistently. Recently, the PBC, collaborating with relevant departments, introduced new policies, including five major campaigns focusing on rural industry development, construction and governance. These aim to increase financial support for rural revitalization. As of late July, the national balance of agricultural loans reached 50.47 trillion yuan, up 11.6% year on year.

In addressing critical aspects of people's well-being, the PBC, in collaboration with relevant departments, has refined policies related to the guaranteeing of loans for business startups by increasing loan limits and including veterans and disabled individuals among the beneficiaries, thereby supporting their pursuits in employment and entrepreneurship. Specifically for economically disadvantaged students, the PBC has improved government-subsidized student loans by initiating an interest-free loan policy in 2024, enabling students to finish their education. By the end of the second quarter of this year, the balance of guaranteed loans for startups reached 293.3 billion yuan and student loans were at 208.5 billion yuan.

Our review identifies policy orientation and financial institution services as the twin pillars essential for developing inclusive finance. Effective policymaking and the robust services offered by financial institutions are both indispensable. Moving forward, the PBC will balance expansion with commercial sustainability, speeding up the development of a stable, incentive-compatible mechanism for inclusive finance. 

At the policy level, our strategies highlight development priorities, directing more financial resources towards key areas and populations to promote balanced and coordinated development between urban and rural areas as well as reinforce social equity and equal opportunities. Additionally, a sound management system along with implementation supervision are crucial for guiding financial institutions to make better and fuller use of monetary policy tools, instruments supporting debt financing and other financial instruments.

Regarding financial institutions, first, it is vital to utilize the comparative advantages of diverse financial entities and improve the durable mechanism that encourages financial institutions to be confident, willing and capable to grant loans. Second, we will embrace technological empowerment. As I just said, our nation leads in digital inclusive finance. Through sci-tech empowerment and application of data technologies, we aim to facilitate deeper integration of fin-tech and inclusive finance. This engagement will drive transformative shifts in how inclusive finance is developed and managed, thus enhancing the accessibility and convenience of these financial services.

Moreover, we plan to utilize platforms such as the Group of 20 and the Belt and Road Initiative for enhanced international dialogue and collaboration, deeply engaging in the global governance of inclusive finance. Thank you for your attention.

The Poster News APP：

In the past five years, our country has seen significant overperformance in the annual growth rates of inclusive small and micro-business loans, green loans, medium and long-term loans for high-tech manufacturing industries as well as loans to technology-driven small and medium-sized enterprises (SMEs) compared to the overall annual loan growth rates. Moving forward, how can financial supports be boosted to achieve a high level of technological independence and strength? Thank you.

Lu Lei:

Thank you for your question. As you might be aware, the PBC established a dedicated department, namely the Credit Market Department, in the first half of this year, to better implement the five major strategies for the development of the financial sector. Today, we also have with us Mr. Peng, Director of the Credit Market Department. I will pass your question to Mr. Peng.

Peng Lifeng:

Thank you for your question. The Central Financial Work Conference highlighted the significance to effectively implement the five major strategies regarding finance: technology finance, green finance, inclusive finance, pension finance and digital finance, with technology finance being listed first. Its significance shouldn't be understated. In recent years, the PBC has worked closely with the Ministry of Science and Technology and other relevant departments to continuously enhance financial support for scientific research and technological development as well as for the commercialization of results throughout the entire financial service chain, achieving noteworthy positive outcomes. For example, we made an action plan to enhance support for financing of tech-centric businesses, facilitated the establishment of pilot zones for financial reforms targeting sci-tech innovation, as well as established a policy framework for technology finance with coordination among various departments and between the central and local authorities. We have also prioritized technological innovation within our strategy to enhance the structure of capital supply, establishing a total of 700 billion yuan in special re-loans to encourage tech innovation and executing targeted actions to advance financial service capabilities in technological fields. Over the past five years, lending to technology enterprises in our country has grown at an annual rate of 20%, nearly double the overall loan growth rate. Detailed data shows even more encouraging trends: loans to tech-oriented SMEs have grown at an annual rate of 25%, higher than the growth rate of loans to all sci-tech enterprises, and loans to "specialized, sophisticated, distinctive and innovative" enterprises have risen by 18% annually, both well above the general lending growth. Furthermore, the issuance of tech notes—bonds specifically issued by tech enterprises—has totaled 860 billion yuan.

Looking ahead, our focus remains firmly on establishing China as a leader in science and technology by developing a financial system that resonates with and bolsters technological innovation. We aim to channel financial capital to invest in projects at the early stages, in small enterprises, over long time horizons, and in advanced and core technologies.

In our strategic approach, we are committed to a comprehensive methodology that integrates various elements. We are dedicated to enhancing financing services for major national scientific and technological projects, establishing a coordination mechanism between financial policies and scientific and technological industrial policies, expanding the array of policy tools and measures for boosting financial support, refining the risk mitigation mechanisms for significant technological research as well as encouraging financial institutions to offer long-term, cost-effective financing support. Furthermore, we are determined to provide robust financial services throughout the entire lifecycle of tech enterprises. We know that these enterprises transition through distinct stages: seed, startup, growth and maturity. With varying financial needs at each stage, we focus particularly on fortifying support for the startup and growth phases of sci-tech SMEs, identified as the more vulnerable segments within our national framework of scientific and technological financial services. To deepen the financial sector's supply-side structural reform, we aim to elevate three key ratios. First, we will increase the share of direct financing within social financing, further diversify capital market financing products and introduce specialized financial bonds dedicated to scientific and technological innovation. These differ from the science and technology innovation notes issued by tech enterprises in that these special financial bonds are issued by financial institutions specifically to strengthen tech enterprises and to broaden the fund resources for financial institutions. Simultaneously, we will enhance incentives and transformations within the financial system to cultivate patient capital. Second, we intend to amplify the proportion of investment at early stages and in small businesses in equity financing, implement policies and measures for the high-quality development of venture capital, optimize the complete cycle of venture capital covering fundraising, investment, management and exit, as well as improve the convenience for foreign investors undertaking equity and venture investment in China. Lastly, we seek to boost the fraction of loans allocated for scientific and technological innovation within the total loan portfolio, effectively utilize reloans designated for technological upgrades and innovations, set up an evaluation mechanism for tech-financial services, guide financial institutions to improve their risk assessment capabilities for tech enterprises, and develop more financial products tailored to the unique requirements of the high-tech sector.

South China Morning Post：

In a recent interview, as the governor of the PBC, Pan Gongsheng indicated that there are plans to implement new incremental policies. Could you provide more details on what these measures might entail? Will the expected interest rate reductions in the United States hasten the adoption of these policies? Thank you.

Lu Lei:

Thank you for your questions. Since they concern specific aspects of monetary policy, I would like to ask Mr. Zou to address these questions.

Zou Lan:

Thank you for your concern about monetary policy. As Mr. Lu just mentioned, since the beginning of this year, the PBC has implemented three significant monetary policy adjustments which have effectively supported economic recovery. At the beginning of the year, proactive and early measures were taken in terms of total amount, with an unexpected substantial cut in the reserve requirement ratio of 0.5 percentage points, helping the economy achieve a good start. In the second quarter, we focused on key aspects of high-quality development, established relending programs for technological innovation and transformation as well as launched a combination of policies targeting the real estate market. Since the third quarter, reforms have intensified in response to the arrangements of the third plenary session of the 20th CPC Central Committee. In late July, a series of monetary policy measures were introduced, including lowering policy interest rates and improving the interest rate adjustment mechanism. This reflects both short-term adjustments and medium- and long-term reform strategies.

Overall, a prudent monetary policy has created a favorable monetary and financial environment for economic recovery and development. In terms of total volume, there has been a reasonable growth in money supply and credit, with the growth rate of social financing and RMB loans exceeding that of nominal GDP. Structurally, support for key areas and weak links has been strengthened, and the credit structure has been continuously optimized. In terms of pricing, the cost of corporate financing and household loans have both decreased. Mr. Lu has already provided detailed data on this.

We will continue to closely monitor monetary policy adjustments of major developed economies. At the same time, China's monetary policy will continue to prioritize domestic needs, with a focus on supporting the domestic economic development. First, in terms of total amount, we will enhance counter-cyclical adjustments, flexibly use various monetary policy tools, maintain reasonable growth in money supply and credit as well as will work to steadily reduce comprehensive social financing costs to support and strengthen the positive momentum of economic recovery. Second, in terms of structure, we will focus on several key areas such as the five major tasks of promoting science and technology finance, green finance, inclusive finance, old-age finance, and digital finance ; the national strategy of issuing and making good use of ultra-long special treasury bonds to support the implementation of major national strategies and build up security capacity in key areas ; and the action plan to promote large-scale equipment renewals and trade-ins of consumer goods. We will continue to guide financial institutions to increase credit support for key areas and weak links, and, more specifically, focus on meeting reasonable consumer financing needs. Thanks.

Phoenix TV:

At present, cross-border capital flows are becoming increasingly frequent. Could you provide details on the reform measures worthy of attention in the next step of high-level opening-up for the capital account? Thank you.

Li Hongyan:

Thank you for your question. Mr. Xiao Sheng will answer this question.

Xiao Sheng:

Thank you for your attention to the issue of the capital account's opening-up. As Ms. Li Hongyan just mentioned, in recent years SAFE has been continuously advancing reforms in the management of foreign exchange for the capital account to better facilitate cross-border capital operations for cross-border entities. Next, SAFE will continue to implement the guiding principles of the third plenary session of the 20th CPC Central Committee, adhere to the principle of seeking progress while maintaining stability, promote stability through progress and further deepen the reforms of foreign exchange management for the capital account, thus continuously improving the quality of the capital account's opening-up. We will focus on the following four areas:

First, we will scientifically manage the timing and efficiency of the capital account's opening-up. We will strategically coordinate and orderly advance foreign exchange management reforms in areas such as direct investment, cross-border financing and cross-border security investment. At the same time, we will focus on the systematic integration of reforms and continue to promote integrated pilot policies to facilitate cross-border investment and financing. In the first eight months of this year, pilot projects for high-level opening-up of cross-border investment and financing have benefited more than 1,400 enterprises, supporting high-quality development of the real economy.

Second, we will lead the overall progress through key points to intensify the reform for foreign exchange management of the capital account. We will promote and improve integrated management of overseas lending in both foreign and domestic currencies and support enterprises in both "going global" and "bringing in" investments in an orderly manner. We will steadily advance the upgrading and expansion for the capital pool business of multinational companies, further improve the operational efficiency for the cross-border funds of multinational companies and support the development of headquarters economy. By the end of August this year, over 1,000 multinational corporate groups have participated in capital pool business, covering 18,000 member enterprises. At the same time, we will work with relevant departments to steadily expand the opening-up of financial markets, improve the management of funds for domestic enterprises' overseas direct listings, optimize the Qualified Foreign Institutional Investor (QFII) system and orderly advance the Qualified Domestic Institutional Investor (QDII) program. In the first half of this year, a total of $2.27 billion QDII quotas have been issued. 

Third, we will support the opening-up and development of key regions. We will provide institutional opening-up to serve national and regional development strategies, such as supporting multinational companies in establishing global or regional treasury centers in Shanghai, supporting the Guangdong-Hong Kong-Macao Greater Bay Area in piloting various innovative policies as well as steadily advancing the construction of the Hainan Free Trade Port and cooperation zones in Hengqin and Qianhai. At the same time, we will provide precise support for regional and industrial development. Based on the earlier implementation of pilot programs such as the "Research Funding Facilitation Policy" in Hetao and "Qianhai Hong Kong Enterprise Loans " in Qianhai, both located in Shenzhen, we will further enhance support for the facilitation of cross-border investment, financing and fund exchange.

Finally, in accordance with deployment requirements of "achieving positive interaction between high-quality development and high-level security," SAFE will build and improve a fully processed, full cycle and fully linked capital account opening-up and risk prevention and control system, firmly securing the bottom line to ensure that systemic financial risks do not occur. Thank you!

Nikkei: 

The PBC is actively planning the promotion of digital RMB, with research reaching the 10-year mark this year. What is the current progress with its empirical experiments in China? Additionally, in June of this year, the cross-border settlement pilot project for digital currencies, jointly developed by China and its Hong Kong region, Thailand and the UAE, entered the minimum viable product (MVP) stage. How do you evaluate the progress of this pilot project? Thank you.

Lu Lei:

Thank you for raising such cutting-edge questions. The construction of a legal currency system that aligns with the digital economy is a topic of great concern to central banks and international organizations. So far, there is no single model or successful paradigm. As you know, we have been actively planning, researching and promoting digital RMB for 10 years now. China's research and development of a digital RMB system aims to create a new system for the issuance and operation of RMB in a digital format that is tailored to the conditions of the digital economy. I need to emphasize that the digital economy, digital form of currency issuance and its operation represent a comprehensive reform, supporting the development of China's digital economy, improving the level of inclusive finance development and enhancing the efficiency of the currency and payment system operations. I have briefly introduced our goals and ideas to you. After more than 6 years of research and development, and over 4 years of pilot trials, spanning more than 10 years in total, we have preliminarily verified the feasibility and reliability of digital RMB in terms of theory, business and technology. We also aim to make it more compatible with the digital economy. Overall, progress has been smooth. I would like to provide a brief overview of the relevant situation.

First, a basic framework system has been established. Combining the overall situation of pilot projects with China's specific situation, we have initially formed a two-tier operational structure of "central bank plus operating institutions," with various systems being constantly improved.

Second, we have steadily expanding our R&D pilot projects, and continually exploring innovative application scenarios. At present, the digital yuan has been piloted in 17 provinces and equivalent administrative units, with applications spanning wholesale and retail, catering, culture and tourism, education as well as medical care. These pilots have yielded a batch of replicable and promotable application solutions both online and offline. The digital yuan has played a positive role in boosting consumption, promoting green transformation, and optimizing the business environment. By the end of June this year, the cumulative transaction amount of digital yuan had reached 7 trillion yuan.

Third, we have continually upgraded our services. On the one hand, we have consistently enriched the digital yuan product system, developing innovative products such as smart contracts, as well as barrier-free, age-appropriate and other functions. We have also promoted the wider acceptance of digital yuan to expand its coverage and bring greater convenience. On the other hand, we have continuously improved the digital yuan service system to offer greater convenience for foreign visitors to China. As you know, the digital yuan was used as an innovative payment method at the 2022 Beijing Winter Olympics, as well as the Chengdu Universiade and Hangzhou Asian Games in 2023. Next, the PBC will earnestly implement the spirit of the third plenary session of the 20th CPC Central Committee, grasp the general trend of digital development, continuously and steadily promote the research, development and application of the digital yuan, and consolidate the foundation for the development of the digital yuan.

This is the basic situation regarding the digital yuan, from its research and development to application. As you requested, I would like to delve into the cross-border digital currency experimental project currently underway. To be precise, such an experimental project is a multilateral central bank digital currency bridge project, which is led by the Bank for International Settlements (BIS) Hong Kong Innovation Centre, and is committed to exploring and solving the shortcomings of cross-border payments. Under the cooperation framework of the BIS, the Digital Currency Institute of the PBC, the Bank of Thailand, the Central Bank of the UAE and the Hong Kong Monetary Authority jointly participated in the project. Currently, the project has reached the minimum viable product (MVP) stage, enabling participating institutions within each jurisdiction to carry out real-world transactions in an orderly manner according to due procedures. In addition, the Group of 20 (G20) has put forward initiatives to improve cross-border payments, and several international organizations have studied the applicability of central bank digital currency in cross-border areas from different perspectives. The PBC is committed to actively participate in, conduct joint research and improve cross-border payments to foster connectivity of international financial infrastructure.

That is all from me. Thank you.

Economic Daily:

What are the new features and changes in China's international balance of payments in recent years? What will the trends be in the future? Thank you.

Li Hongyan:

Thank you for your questions; I'm happy to address them. The international balance of payments is a highly important indicator reflecting both domestic and external balance of an economy. It has been attracting widespread attention from markets, while its monitoring and analysis have been a focus of our work. Since the 18th CPC National Congress, China's economic strength has seen a historic leap, laying a solid foundation for the steady operation of the international balance of payments. In general, there are several features: the current account surplus is reasonable and balanced, cross-border investment is more active, an independent equilibrium has been maintained in the balance of payments, and foreign exchange reserves rank first in the world. Specifically:

First, the current account balance has expanded significantly, and has shown greater stability. In recent years, China has continuously promoted industrial transformation and upgrading, fostered integration between the service and manufacturing industries, and showed steady growth in exports. As the economy has developed and people's living standards have improved, China's import demand for overseas goods and services has also increased. In 2023, China's current account balance exceeded $7.3 trillion, an increase of 60% compared with 2012. At the same time, with the increasingly balanced, coordinated and sustainable economic development, China's current account surplus to gross domestic product (GDP) ratio has maintained at around 2% in recent years, which is within a reasonable and balanced range.

Second, two-way cross-border investment has become increasingly robust. In terms of direct investment, Chinese enterprises have strengthened their global presence and expanded their capital outflows. The stock of foreign direct investment (FDI) has leapt from 12th in 2012 to fourth in 2023 globally. China has also maintained its position as an important destination for foreign investors, with its investment stock ranking second in the world, while its investment structure has been continuously optimized. Concerning securities investment, the two-way opening of the financial market has progressed steadily, and the asset allocation demand of domestic and overseas investors has increased significantly. By the end of 2023, cross-border securities investment accounted for 17% of China's total foreign assets and liabilities, up 8 percentage points from 2012.

Third, an independent equilibrium has been maintained in the balance of payments. In recent years, the market-oriented formation mechanism of the RMB exchange rate has been continuously improved, the flexibility of the exchange rate has been continuously enhanced, and the automatic stabilizer function of the exchange rate in adjusting the international balance of payments has been continuously optimized. With the reform and development of the foreign exchange market, the ability of enterprise exchange rate risk management has significantly enhanced, and foreign exchange market transactions have become more rational and orderly. The balance of payments has gradually shifted from a pattern of surplus in both the current and capital accounts to a more balanced position with surplus in one and deficits in the other," maintaining a basic stability in foreign exchange reserves.

Looking ahead, China will further deepen reform comprehensively, continuously transform and upgrade its economic structure, and strengthen the resilience of its foreign exchange market. Under the support of these favorable factors, China's international balance of payments will continue to show a pattern of larger scale, optimized structure and basic equilibrium. At the same time, we will pay close attention to the changing situation, optimize the risk warning and response mechanism, guard against the risks of abnormal flow of cross-border funds, and safeguard China's economic and financial security. Thank you.

China News Service:

We recognize that high-quality development is inseparable from the advancement of financial system reform. Looking ahead, how will the central bank further refine its monetary policy framework? Thank you.

Lu Lei:

The reporter is very much concerned about monetary policies. We will have Mr. Zou Lan to answer this question.

Zou Lan:

Thank you for your question. PBC Governor Pan Gongsheng outlined the approach to improving the monetary policy framework at the Lujiazui Forum in Shanghai on June 19. Building on this, I'd like to provide an introduction that includes some updates on the latest progress.

The third plenary session of the 20th CPC Central Committee proposed deepening financial system reform and accelerating improvements to the central bank system. At its core, this involves enhancing the modern monetary policy framework with Chinese characteristics and building a strong currency. We will further improve the monetary policy framework with Chinese characteristics, considering economic and financial developments and conducting prudent assessments of monetary policy effectiveness.

First, we should consider optimizing the intermediate variables for monetary policy regulation. In recent years, China's economic structural transformation has accelerated. The financial market has developed and the financing structure has evolved. These changes have reduced the measurability and controllability of the money supply and its correlation with the economy. We will gradually shift focus from quantitative targets, using them more as observational, reference and anticipatory indicators. Instead, we'll pay more attention to price-based regulation tools such as interest rates. Simultaneously, in light of changing circumstances, we will study and improve the statistical criteria for money supply to ensure monetary statistics reflect the actual situation.

Second, we need to reform the interest rate regulation mechanism. Previously, we had multiple policy rates, making it unclear which one the market should use as a reference. Now, we have made it clear that the 7-day repo rate in the open market is the major policy rate, with the medium-term lending facility playing a secondary role in policy rates. We've changed the 7-day reverse repo from interest rate bidding to fixed-rate quantity bidding, fully meeting primary dealers' bidding needs. The interest rate is no longer a tender result but is determined by the central bank in accordance with the needs of implementing monetary policy. The quantity is no longer a means for the central bank to regulate liquidity but is jointly determined by primary dealers based on the policy rate and their market judgment. This helps boost institutions' initiative to manage liquidity.

In the future, we will further improve the market-based interest rate regulation mechanism. We'll appropriately narrow the width of the interest rate corridor to better guide market-based interest rates to operate steadily around the policy rates. Meanwhile, in terms of interest rate transmission, we'll focus on improving the quality of loan prime rate (LPR) quotes, granting financial institutions more power to set their interest rates, more accurately reflecting loan market rates, and promoting the smooth transmission of market interest rates from short to long term. To avoid affecting the transmission of policy rates to the LPR, the monthly medium-term lending facility operations will be scheduled after the LPR is published. The price will be determined by the bidding agencies' offers.

Additionally, we will continuously enrich our monetary policy toolkit. To implement the Central Financial Work Conference's requirement to enrich the monetary policy toolkit and increase treasury bond trading in the central bank's open market operations, the PBC has been conducting government bond trading since August. We released the "Announcement on Government Bond Transactions No.1" at the end of August, on the basis of strengthening coordination with financial departments and continuously optimizing the institutional arrangements for the issuance and trading of treasury bonds. In August, the PBC purchased short-term treasury bonds from primary dealers and sold long-term treasury bonds, with a net monthly purchase of 100 billion yuan in treasury bonds. The central bank's treasury bond trading primarily focuses on base currency supply and liquidity management. It allows for both buying and selling treasury bonds. Through flexible combination with other tools, short-, medium- and long-term liquidity management can be sound and targeted. At the same time, we will also take innovative steps to implement structural monetary policy tools in line with macroeconomic conditions and regulatory needs, continuously improving the efficiency of monetary policy.

Finally, we must further improve the transmission of monetary policy. This process actually has two stages. The first is transmission from the central bank to financial markets. By strengthening policy communication and expectation guidance, increasing monetary policy transparency, and enhancing financial institutions' capacity to set prices independently and rationally, we can improve the quality and efficiency of financial services. The second stage is transmission from financial markets to the real economy. We need to focus on removing barriers to policy transmission and strengthen coordination among monetary, fiscal, industrial, regulatory and other policies. We aim to promote supply-demand balance and shift economic policy focus toward areas benefiting people's livelihoods and boosting consumption. We will also improve how policies affect real economic factors like consumption, investment and other variables. These efforts will help improve the quality and efficiency of financial services.

That's all from me. Thank you!

Xing Huina:

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

National Business Daily:

Green finance has become a hot topic as China pursues its dual carbon goals: peaking carbon emissions by 2030 and reaching carbon neutrality by 2060. What work has the PBC done to promote innovation in financial products and services supporting the transition to green and low-carbon development? Thank you.

Lu Lei:

Thank you for your important question. I will answer it. As we all know, green development is a defining feature of high-quality development. The concept of green development is rich and multifaceted. We've preliminarily summarized that it encompasses many areas, including industrial restructuring, climate change response, pollution prevention and control, and eco-environmental protection. Therefore, it has broad development prospects. Due to the extensive prospects and the many areas involved, green development naturally has a strong demand for funding. Therefore, we might say green finance represents a new type of supply-demand relationship formed in the financial sector as a result of green development.

Focusing on green finance, the PBC has upheld the principle of "establishing the new before abolishing the old," supporting the faster accumulation of financial resources in green and low-carbon areas. First, we've enhanced policy guidance. This year, we took the lead in introducing the "Guidance on Strengthening Financial Support for Green and Low-Carbon Development." This document specifies goals and concrete measures for optimizing the standards system, strengthening information disclosure, and promoting product and market development. In addition, we've also leveraged green financial products like green loans and bonds, utilizing carbon-reduction support tools to provide more funding for the development of green industries. As of the end of the second quarter, China's green loan balance reached 34.76 trillion yuan, up 28.5% year on year. The carbon-reduction support tool has driven over 1.1 trillion yuan in carbon-reduction loans. The balance of green bonds stood at 1.99 trillion yuan, with cumulative issuance exceeding 3.7 trillion yuan. Simultaneously, we've strengthened interdepartmental cooperation, establishing a working mechanism for green financial services to support building a beautiful China. We've enhanced interdepartmental and cross-sector coordination and cooperation among industrial and financial departments and market entities, jointly promoting the green and low-carbon transition of economic and social development.

As far as I'm concerned, interdepartmental coordination and cooperation are crucial. The financial sector, other relevant departments and market entities should all work together.

After our recent work, we've identified effective ways to develop green finance, which we summarize as "two foundations and three key elements." The "two foundations" are: first, accelerating the development of emerging green industries and second, promoting the green transition of traditional industries. The "three key elements" refer to effective monetary and credit policies, financial market instruments, and interdepartmental coordination. These will constitute the focus of our follow-up work.

First, we'll refine the policy system. In accordance with the overall requirements for building a beautiful China, we'll introduce a series of green finance policies and arrangements. We'll expand the scope of carbon reduction support tools, extend the validity period of policies, and increase the scale of re-lending to provide more low-cost funding for green development and low-carbon transition. We'll include financial institutions' support for green and low-carbon development in our green finance assessment framework. By strengthening the application of assessment results, we aim to guide more financial resources toward green and low-carbon development.

Second, we'll expand financial market instruments. We'll build a high-standard green bond market, strengthening management of green bond issuance, duration and third-party evaluations. We'll particularly focus on preventing the greenwashing of financial bonds. We'll further diversify green bond types and broaden financing channels for green industries.

Third, we'll strengthen interdepartmental coordination. We'll establish and improve a regular information-sharing mechanism and refine the support system for green finance policies. We aim to enhance the systematicity, consistency, authority, and enforceability of green finance standards.

That's all I have to say about green finance. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thanks to all the speakers and to all our media friends for participating. Goodbye, everyone.

Translated and edited by Wang Ziteng, Wang Wei, Gong Yingchun, Ma Yujia, Mi Xingang, Zhou Jing, Liao Jiaxin, Liu Sitong, Yan Xiaoqing, Zhang Rui, Zhang Tingting, Li Huiru, Xu Kailin, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Wang Daoxi, vice minister of emergency management

Mr. Zhou Tian, vice minister of emergency management and administrator of the National Fire and Rescue Administration

Mr. Huang Jinsheng, a member of the Party committee of the Ministry of Emergency Management and administrator of the National Mine Safety Administration

Mr. Wang Kun, a member of the Party committee of the Ministry of Emergency Management and administrator of the China Earthquake Administration

Chairperson:

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

Date:

Sept. 4, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Wang Daoxi, vice minister of emergency management; Mr. Zhou Tian, vice minister of emergency management and administrator of the National Fire and Rescue Administration; Mr. Huang Jinsheng, a member of the Party committee of the Ministry of Emergency Management and administrator of the National Mine Safety Administration; and Mr. Wang Kun, a member of the Party committee of the Ministry of Emergency Management and administrator of the China Earthquake Administration. They will provide briefings on relevant developments and take your questions. 

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

Wang Daoxi:

Laides and gentlemen, good morning. 

First of all, I would like to express my gratitude for your long-term interest in and support for emergency management work. Today, my colleagues and I will speak with you about how emergency management efforts have promoted high-quality development. 

Ensuring both development and security is a major principle underlying the governance of the Communist Party of China (CPC). Since the 20th CPC National Congress, General Secretary Xi Jinping has made a series of new conclusions on how to ensure high-quality development and greater security reinforce each other, as well as better safeguarding China's new pattern of development with new security architecture. In line with General Secretary Xi Jinping's important instructions as well as the decisions and deployments of the CPC Central Committee and the State Council, we have prevented risks, ensured safety and maintained stability with an ever-present sense of responsibility. These efforts have led to a favorable security environment for high-quality economic and social development, which can be summarized in four respects:

First, we have prioritized prevention and maintained a stable security situation. With regards to effective prevention as a fundamental principle and leveraging the functions of the State Council's Work Safety Commission, we have focused on strengthening responsibility implementation and addressed root causes of workplace safety accidents, resolutely preventing major and serious accidents. We have clarified responsibilities across the entire chain for "one matter," launching special initiatives on gas safety and electric bicycle safety as well as clearing fire escape routes. Across the country, 12.32 million illegally installed burglar-proof windows and billboards have been dismantled or modified, and 6.48 million new charging ports have been added in existing residential complexes and open public spaces. We have put equal emphasis on strict law enforcement and regulation as well as enthusiastic guidance and services, offering more timely assistance to address urgent public concerns. For example, we have established a "paired-up assistance" mechanism for key regions, dispatched expert teams to key industries and proactively helped enterprises solve real problems early on to support their safe development. As of the end of August this year, compared to the same period last year, the total number of workplace safety accidents nationwide decreased by 25.7%, with major and serious accidents down by 45.5%.

Second, we have enhanced relevant systems, making rescue operations more efficient. A comprehensive committee for disaster prevention, mitigation and relief has been established, and efforts have been made to enhance across-the-board coordination for disaster response. We have created a mechanism of command and coordination by the national emergency response headquarters, and built up an interconnected emergency response information network. We have accelerated the development of a safety risk monitoring and early warning system, and refined emergency response plans to ensure preparedness. Last year, additional treasury bonds were issued to support post-disaster recovery and reconstruction as well as reinforce disaster prevention, mitigation and relief capacities, with natural disaster response enhancement projects vigorously implemented. This year, China experienced multiple instances of prolonged heavy rainfall, breaking several hydrological and meteorological records and causing severe disasters in some regions. In response, we organized extensive flood prevention and combating efforts, pre-allocated relief funds in cooperation with the Ministry of Finance, and dispatched working groups to the front lines in order to provide guidance and assistance and resolutely win this tough battle. The China National Comprehensive Fire and Rescue Team worked tirelessly to rescue trapped individuals, demonstrating their essential role in emergency response and illustrating the true image of firefighters.

Third, we have focused on fortifying the foundation, significantly improving intrinsic safety. We have taken strengthening the foundation as a focus in our current emergency management work, addressing both the symptoms and root causes of problems. Maintaining order in accordance with the law, we have promoted the formulation and revision of several laws and regulations, including the Emergency Response Law and the Regulations on Coal Mine Safety. We have released a series of industry standards, integrating safety requirements into all stages including planning, project initiation, construction and operation. We have also adhered to promoting safety through advancements in science and technology, implementing the "smart emergency response" strategy. We have vigorously promoted mechanization and automation in high-risk industries to reduce the need for manual labor, leveraging information technology to drive emergency management modernization. Additionally, we have been committed to strengthening safety through quality workforce development. We have initiated an emergency response technology talent program and made great efforts to cultivate emergency management talent. At the same time, we have actively supported the development of community-level emergency management capacities, directing more resources and strengths to lower-level governments in order to reduce their burden while empowering them for emergency response.

Fourth, we uphold social co-governance, continuously strengthening safety by relying on the public. Development is for the people and relies on the people. We have fully mobilized enthusiasm across all sectors of society, encouraging widespread participation in public security management. We have regulated and guided the development of social emergency response teams and promoted the involvement of commercial insurance, credit supervision, and safety evaluation institutions in accident prevention and disaster relief, steadily bolstering collective prevention and control efforts. Since the beginning of this year, more than 310,000 public reports on workplace safety have been filed nationwide, with over 30 million yuan in rewards distributed. We have also publicly commended several exemplary cases where disaster information personnel successfully sounded alarms and organized evacuations to avoid danger. We have expanded various channels to cultivate a culture of safety, continuously intensified emergency knowledge popularization, and launched innovative initiatives such as Work Safety Month, Fire Safety Month, and Disaster Prevention and Mitigation Awareness Week. Additionally, we've bolstered safety training for key personnel of enterprises in high-risk industries, aiming to ensure that everyone prioritizes safety and knows emergency response.

The third plenary session of the 20th CPC Central Committee outlined strategic arrangements to strengthen the national security system and improve public security governance mechanisms. These plans provide a clear direction and momentum for deepening reforms in emergency management. Moving forward, we will fully implement the spirit of the plenary session with a reform and innovation mindset, adhering to the principle of balancing development with security. Our priorities are to fortify systems, refine mechanisms, enhance grassroots capabilities, and boost overall capacity. We will actively promote the modernization of emergency management systems and capabilities. Our goal is to effectively transform the strategic deployment of further deepening reform comprehensively into practical actions that advance the reform and development of emergency management.

That's all for my introduction. My colleagues and I are now ready to answer your questions. Thank you!

Xing Huina:

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

N Video from Nanfang Metropolis Daily:

The third plenary session of the 20th CPC Central Committee has made strategic plans for further deepening reform comprehensively and set forth specific emergency management reform requirements. What measures will the Ministry of Emergency Management take to implement these requirements and further enhance the capacity and level of high-quality development?

Wang Daoxi:

Thank you for your question. I will answer it. The resolution from the plenary session includes a dedicated chapter on advancing the modernization of the national security system and capacity, as well as a specific section on improving public security governance mechanisms. This represents a major strategic initiative to implement a holistic national security approach. It aims to balance development with security and address major risks and challenges, thereby ensuring steady and sustained progress in the cause of the Party and the country. Based on the full implementation of the plenary session's decisions and plans, we will focus on three key areas:

First, we will focus on enhancing our rescue and relief capabilities. We are accelerating the integration and reform of national comprehensive fire and rescue teams to improve the response and support system for major public emergencies. We aim to quickly establish six regional rescue centers in northeast, north, central, southeast, southwest and northwest China, creating key powerful forces tailored to each region's disaster characteristics. To meet practical demands under extreme conditions such as road blockages, network failures, and power outages, we are increasing the development and deployment of advanced specialized equipment for aerial rescue, water rescue, personnel search and rescue, emergency communications, and engineering disaster response. We are also improving mechanisms for rapid allocation and delivery of disaster relief supplies to meet the diverse needs of affected populations, particularly for older people, women and children. Our goal is to ensure that rescue and relief efforts are not only swift but also compassionate. To refine the emergency response command mechanisms under the overall safety and emergency response framework, we will expedite the revision and issuance of the National Emergency Management System Plan and related specialized plans. This will further strengthen the Party's leadership and command in emergency management, clarify the responsibilities of relevant departments, and better ensure the optimization, coordination and efficiency of various forces and resources. At the national level, we have already established the emergency command headquarters. We will guide local authorities in building robust emergency command centers at the provincial, municipal and county levels, complemented by improved communication networks and information systems. This will enhance the comprehensiveness, systematization and professionalism of emergency command operations.

Second, we will focus on improving the quality of risk prevention. To enhance the mechanisms for identifying and addressing workplace safety risks and for conducting retroactive liability investigations, we will continuously optimize criteria for determining major hidden dangers. We'll improve long-term mechanisms for expert and specialized technical service organizations to participate in risk identification and mitigation, standardizing and professionalizing the process. We will also help enterprises establish and enhance regular self-inspection and hazard mitigation mechanisms, encouraging proactive risk identification and prevention to ensure safe development. Additionally,, we will intensify efforts to ensure the fulfillment of investigation and rectification responsibilities. This includes improving local government oversight systems for major accident risk prevention, and establishing mechanisms for relevant departments to review and approve the resolution of risk warnings. Entities that fail to investigate and rectify obvious major risks, especially those causing significant casualties, will be held accountable in accordance with laws and regulations.

Third, we will focus on strengthening our efforts at the primary level. In February, guidelines on enhancing primary-level emergency management capabilities were approved at the fourth meeting of the Commission for Further Reform under the CPC Central Committee. We are now swiftly modifying and improving these guidelines in line with the meeting's requirements and the guiding principles of the third plenary session of the 20th CPC Central Committee. After the guidelines are released, we will work with relevant departments to implement them thoroughly. We'll continuously enhance primary-level emergency management organizations' capabilities for command, risk prevention, practical response, emergency handling, and ensuring supplies and resources. By doing so, we will strengthen the first line of defense in emergency management. The first national comprehensive natural disaster risk survey has provided a clear picture of the hidden hazards across the country. We will continue to utilize the information gathered by the survey, controlling risks at their source and promoting meticulous risk management. These efforts will constantly improve comprehensive disaster reduction capacity at the primary level. Thank you.

China Media Group:

We've noticed that following the reform and restructuring of the fire and rescue service, its functions have expanded and its responsibilities have increased, presenting many new challenges. How has the national comprehensive fire and rescue team advanced its organizational structure and enhanced its professional rescue capabilities in recent years? Thank you.

Wang Daoxi:

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

Zhou Tian:

Thank you for your question. The functions of the nation's comprehensive fire and rescue service have significantly expanded since the reform and restructuring began. The annual number of emergency calls we responded to increased from 1.18 million in 2018 to 2.14 million in 2023, nearly doubling in five years. To meet these expanded responsibilities, we have faithfully implemented the important instructions of General Secretary Xi Jinping. We've further advanced the development of our organizational structure based on China's specific conditions and enhanced our professional rescue capabilities to meet real-world needs. By doing so, we have effectively accelerated the integration, transformation and modernization of our fire and rescue service, significantly increasing our operational effectiveness.

To further advance our organizational structure, we have intensified the urban-rural fire and rescue network by planning and building fire and rescue stations, special-duty stations and government professional firefighting teams. We've also improved enterprises' professional firefighting teams and small-scale fire stations, while guiding localities to establish 24,000 new fire stations in towns and subdistricts, staffed by over 95,000 personnel. We have also formed mobile teams, dispatching over 4,900 servicemen to 20 provinces, achieving coverage across all provincial-level regions and enabling nationwide mobility for major disaster-relief efforts. We have established six state-level regional emergency response and rescue centers in Hebei, Heilongjiang, Hubei, Guangdong, Sichuan and Gansu provinces. These serve as regional aviation rescue bases, emergency supply centers, and elite rapid-response forces, meeting regional disaster and accident response needs. We have focused on strengthening specialized capabilities, establishing over 5,000 specialized rescue teams for scenarios such as high-rise buildings, underground facilities, large-span spaces, hazardous chemicals, earthquakes, water rescues, geological hazards, and ice and snow conditions. Special-duty teams, as well as fire and rescue units, have also been established and enhanced. Based on local needs, some localities have established specialized teams for mountain, ice field, and high-altitude rescues. We've also set up six cross-border forest firefighting and rescue units, as well as 12 special rescue corps. The operational areas of two aviation rescue teams, in Daqing and Kunming, now cover 10 provinces.

In terms of improving professional rescue capabilities, we have promoted the building of national, provincial and municipal earthquake and water rescue training bases, increased the training of special rescue talents and have trained more than 83,000 teachers and technical personnel. We have ramped up efforts to launch practical training as well as have held the fire and rescue professional skill competition for firefighters and the skill competition for fire rescue dogs. We have kept a close eye on both major disasters and extremely complex disasters, enhanced the sharing of information and the joint operation of forces, deepened on-site familiarization drills and expert-assisted decision-making, and have achieved integrated dispatch, command and coordinated emergency response. We have strengthened the application of new technological equipment, accelerated the upgrading of conventional equipment, promoted research and development of high-precision "trump card" equipment and intelligent equipment, as well as have developed practical application technology. Over the past five years, the professional rescue capabilities of our fire and rescue teams have steadily improved, especially in the rescue operations of major disasters and accidents such as the 6.2-magnitude earthquake that jolted Jishishan county, Gansu province, the severe floods in the Beijing-Tianjin-Hebei region and the dike breach at the lake levee in Tuanzhou township, Hunan province, demonstrating the central role of the main force of emergency rescue and the national team.

Next, we will regard combat capability as the criterion, and rally firefighting forces and shoulder firefighting responsibilities to protect people's lives and property and promote economic and social high-quality development. Thank you.

Red Star News:

Improving the seismic resistance of buildings is one of the effective ways to reduce damage from earthquake. We have noticed that the China Earthquake Administration (CEA) is organizing the compilation of a next-generation seismic ground motion parameter zonation map to provide national standards for construction and anti-seismic design. Could you please brief us on the details of this project? Thank you.

Wang Daoxi:

I will invite Mr. Wang Kun to answer this question.

Wang Kun:

Thank you for your question. China is a country prone to earthquake disasters and has a very complex geological structure, so the risk of seismic activity varies significantly from region to region. Seismic ground motion parameter zonation is the division of territories into several zones according to the degree of earthquake hazard, and to set different earthquake fortification requirements for each zone. The seismic zoning map mainly provides standards for the planning, site selection and earthquake fortification of general construction projects, as well as a basis for economic and social development planning, territorial space planning, urban and rural planning and the formulation of social preventive measures, as well as emergency preparedness and response.

China has developed five generations of seismic ground motion parameter zonation maps since 1957. The first three generations of seismic zoning maps were used as "references" and "basis," and the fourth and fifth generations were used as "mandatory national standards." Therefore, it can be seen here that our earthquake fortification requirements are constantly improving. In 2022, the CEA officially launched the compilation of a new-generation seismic zoning map. The new-generation seismic zoning map takes risk prevention as the overall objective, featuring "multi-probability, broadband, high precision and integration of land and sea." It is expected to be completed by the end of 2025. At the same time, the revision of Seismic Ground Motion Parameter Zonation Map of China, a mandatory national standard, will commence. At present, all work is progressing smoothly. First, the collection and collation of basic data has been generally completed. I will elaborate here with some data. We have built a basic database containing 14,000 destructive earthquake catalogs, 230,000 small earthquake catalogs and 11,000 sets of strong vibration observation records of 1942 earthquakes in China and neighboring areas. Second, we have completed a national seismic tectonic environment analysis and potential seismic source division, as well as have carried out the construction of three-dimensional seismic source models in strong seismic zones, such as the Tangshan earthquake and the Tancheng earthquake. Third, we have established a series of key models such as seismic activity, seismic motion prediction and site seismic motion, and have built technical methods for seismic ground motion hazard calculations. Fourth, we have carried out integrated pilot projects with key models and technologies in representative areas such as the North China Plain as well as Sichuan and Yunnan provinces, and have completed the seismic hazard calculations in pilot areas.

The new ground motion parameter zoning map is expected to improve the country's seismic safety standards, based on lessons from the 6.2-magnitude earthquake in Gansu's Jishishan, the 7.8-magnitude earthquake in Türkiye and the 7.3-magnitude earthquake in the Taiwan region's Hualien. For eastern China's supertall structures, densely populated large commercial complexes, and other facilities, we've placed greater emphasis on the effects of long-period ground motion and the amplification caused by deep sedimentary basin layers. In western China's regions with concentrated large fault zones, we've adopted a three-dimensional epicenter model and a corresponding ground motion model to more accurately assess seismic activity levels near active faults. In short, this new generation of zoning maps will give full play to scientific and technological innovation and the practical application of research outcomes. It will better serve earthquake resistance efforts in general construction projects and formulation of various response plans, while effectively supporting earthquake disaster risk identification, assessment, and the development of a more earthquake-resilient society. Thank you.

The Poster News APP:

At the beginning of this year, the Work Safety Committee of the State Council issued the Measures on Prevention and Containment of Major and Serious Workplace Accidents in Mines. Could you please provide an update on the implementation of these measures? Thank you.

Wang Daoxi:

Mr. Huang will answer your question.

Huang Jinsheng:

Thank you for your concern about mine safety. Since the beginning of this year, the Ministry of Emergency Management and the National Mine Safety Administration have prioritized implementing measures nationwide and carried out special campaigns on regulation learning, responsibility clarification, solid implementation and safety assurance. We asked relevant departments to bear their responsibilities and implement the measures precisely, which effectively promoted stable and improved safety conditions in the country's mines. No major or serious workplace accidents occurred in mines after the measures' introduction. Through the end of August, the number of workplace accidents in mines and the death toll from those accidents decreased by 25.6% and 31.99%, respectively.

In terms of safety responsibility, we refined tasks for responsible parties, clarifying 15 tasks for enterprises, 15 for supervision departments, 15 for state administration, and six for local Party committees and governments, and guided them in implementing these tasks.

In terms of disaster risk prevention and control, we published a list of 1,128 mines with serious disaster risks, conducted special inspections of hidden hazards at 2,122 mines and carried out specialized water damage prevention inspections at 821 mines. By doing so, we identified and addressed 11,257 major potential safety hazards. Additionally, evacuation protocols during extreme weather warnings, evacuating 130,000 miners. We spared no effort to prevent major disasters and accidents.

In terms of cracking down on illegal activities, we carried out special inspections targeting concealed workplaces in coal mines, suspending operations in 725 places nationwide. During a campaign targeting security monitoring system fraud, 291 enterprises were exposed, 3,582 enterprises and 8,533 people in charge of enterprises were admonished, and 399 people were prosecuted.

In terms of improving safety awareness, we organized video training courses on workplace safety in mines, with more than 13,000 people participating and more than 700,000 studying online. These efforts enhanced safety production awareness among workers.

In terms of national mine safety supervision, we conducted safety oversight in Shanxi and Heilongjiang provinces. This effort led to the implementation of 388 and 68 new regulatory measures in these provinces, respectively. The mine safety supervision system carried out 5,558 governmental oversight actions, issued 2,069 rectification letters and supervisory recommendations, and admonished 1,697 people, which showcased the significance of national supervision in mines.

Mining remains a crucial yet hazardous industry with significant safety challenges, given its inherent high risks and fragile foundation. Looking forward, we will follow the guiding principles of the third plenary session of the 20th CPC Central Committee. We will advance the reform and development of workplace safety in mines by solving problems in individual cases and across the whole industrial chain. Workplace safety improvements will ensure a stable and secure supply of energy and mineral resources, supporting the country's high-quality economic and social development. Thank you.

China News Service:

In 2018, the CEA launched the China Seismic Experimental Site (CSES) project to study earthquake formation patterns in the country. Could you please provide an update on the progress of this project? How has its construction leveraged the supportive role of seismic science and technology, and how is it helping to modernize earthquake prevention and disaster alleviation? Thank you.

Wang Kun:

Thank you for your interest. The International Conference for the Decade Memory of the Wenchuan Earthquake was held on May 12. 2018. President Xi Jinping sent a letter to the conference, emphasizing the importance of scientifically understanding the laws of disasters and effectively reducing disaster risks. The central government also announced the construction of the CSES at the conference. The CEA's leading Party members group has firmly implemented the spirit of General Secretary Xi Jinping's letter, along with the disaster prevention, mitigation, and relief concept of "Two Commitments and Three Shifts." We are committed to integrating preventive efforts with disaster resistance and relief measures, while balancing regular mitigation and non-regular relief operations. This concept emphasizes a shift from post-disaster relief to pre-disaster prevention, from addressing single types of disasters to comprehensive mitigation, and from merely reducing losses to minimizing risks. Keeping in line with socioeconomic requirements and market rules and relying on science and technology, the CEA has strived to fulfill the overall goals of facilitating earthquake prediction, ensuring energy security, improving the resilience of cities, and mitigating disaster chains. Drawing on both domestic and international experiences, we are sparing no efforts to advance the construction of the CSES. 

The CSES is a major sci-tech infrastructure project to be constructed during the 14th Five-Year Plan period and the world's only seismic research facility focused on systematic studies of strong continental earthquakes. In 2023, the budgetary estimates were approved, and construction is now in full swing. The plan is to build 1,769 observation stations across Sichuan and Yunnan. These stations will monitor seismic activity, ground deformation, geochemical changes, and gravity fluctuations. Once completed, the CSES will be able to identify potential earthquake sources that may induce 6.5-magnitude or stronger earthquakes in block boundary belts. 

While constructing the CSES, we've insisted on delivering outcomes and providing services. Since 2018, the project has produced 15 scientific results, such as high-precision velocity structure models and Mohorovičić discontinuity models. We collaborated with the University of Science and Technology of China to launch the world's first AI-powered earthquake monitoring system, capable of accurately estimating earthquake source mechanism parameters within one second. We've also developed an AI-based automatic earthquake cataloging system, which triples the efficiency of manual work. We recently partnered with the National Supercomputing Center in Chengdu, Tsinghua University and other institutions to release the world's first large-scale seismic wave model with over 100 million parameters. These achievements provide crucial sci-tech support for enhancing smart earthquake monitoring and prediction, as well as modernizing earthquake prevention and disaster mitigation efforts.

We are prioritizing openness and cooperation in the CSES's construction and operation. Scientists from 13 countries, including the U.S., Russia, the Netherlands, Egypt, and Algeria, have contributed to the CSES's scientific research. Research universities, such as Peking University, the University of Science and Technology of China, and the Southern University of Science and Technology, have collaborated with the provincial governments of Sichuan and Yunnan in the construction of the project. Over 3,000 experts from China and abroad have attended the CSES annual conferences for exchanges in recent years, enhancing the project's academic influence. 

China aims to become the global leader in earthquake science and technology by 2035. To achieve this goal, Chinese seismologists will uphold and advance the scientific spirit, develop the CSES into a global hub for seismology and international cooperation in earthquake science and technology, as well as a global talent pool in this field. Efforts will be intensified to enhance China's self-reliance and strength in earthquake science and technology, facilitating Chinese modernization by providing high-standard earthquake safety services. Thank you. 

Cover News:

What measures have been taken to tackle hidden fire safety risks in key sectors while promoting a preemptive approach to public security governance? What progress has been made? What do you plan to do next? Thank you.

Wang Daoxi:

Mr. Zhou will answer these questions.

Zhou Tian:

Thank you for the questions. Fire safety is a crucial component of public security and directly impacts people's daily lives and work. We consistently uphold the principle of "people-first, life-first," closely monitoring key areas and critical links and implementing effective measures to address hidden fire safety risks. 

In terms of formulating regulations and standards, we strengthened efforts to address problems at their source and improved fire safety-related regulations and standards. We issued 23 sets of fire safety regulations, including those on the management of social fire protection technical services, fire safety management in high-rise civil buildings, and trial measures for fire safety management in leased factories and warehouses. We ensured the implementation of fire safety-related responsibilities and made strict and clear requirements regarding fire safety management. In collaboration with market regulation and urban-rural development authorities, we issued 68 national standards and 35 industry-specific standards for fire safety. These include the general code for fire protection of buildings and constructions, guidelines for preparing and implementing firefighting and emergency evacuation plans for workplaces, and rules for fire safety management in large-scale commercial complexes, providing technical support for social fire safety management. 

Regarding specialized rectification, we have adopted a "whole-chain" supervision method to address pressing real-world issues, continuously advancing concentrated efforts to rectify safety hazards related to electric bicycles and fire protection products. Concurrently, we have inspected 955,000 high-rise buildings and addressed 488,800 identified hazards. We have advanced standardized fire safety management in large commercial complexes exceeding 50,000 square meters and checked risks in labor-intensive enterprises within industrial parks, factories and mixed-use business sites with multiple operations and ownerships. We launched a campaign to clear fire escape routes and addressed over 3.76 million issues related to blocked evacuation passages, emergency exits and fire lanes.

In terms of public awareness education and training, we have intensified our efforts to promote fire safety education in businesses, rural areas, communities, schools and homes. For example, we organized summer fire safety campaigns and livestreamed fire safety classes for primary and middle schools. We also partnered with postal departments to distribute fire safety materials to households. To address issues like the illegal transfer of contracts, subcontracting, unauthorized hot work, unsafe operations and chaotic on-site management, we produced three specialized fire safety training videos for manufacturing plants, medical institutions and dining establishments. These videos were widely distributed to relevant organizations for training purposes.

To empower organizations to better manage their own fire safety, we have developed fire prevention guidelines, inspection instructions and management regulations tailored to new sectors and emerging industries. We have provided model inspection training, on-site guidance, appointment-based training services and follow-up technical assistance to improve organizations' capabilities in identifying, checking and rectifying fire hazards. We have focused on high-risk areas such as small-scale businesses, mixed-use facilities, and densely populated areas. In these areas, we have focused on key personnel and emergency response teams in organizations, and conducted large-scale fire safety drills, promoting knowledge and skills needed for fire prevention and self-rescue.

Moving forward, we will continue to enhance our public safety system and strengthen our fire safety management capabilities. We aim to develop a comprehensive fire safety work method that involves various departments and encourages public participation. These efforts are designed to support and facilitate high-quality social and economic development. Thank you for your attention.

China Emergency Management News:

Developing intelligent mine is crucial in promoting high-quality development in the mining industry. What progress has China made in developing intelligent mines? What measures will be taken in the future? Thank you.

Huang Jinsheng:

Thank you for your interest in intelligent mine construction, which is a specific measure for implementing important proposals put forward by General Secretary Xi Jinping regarding new quality productive forces. It also serves as a crucial means of shifting mine safety management towards a more proactive and preventive approach. In recent years, we have implemented a series of measures and introduced many policies to foster significant advancements in intelligent mine construction. 

To enhance top-level design, this April, the National Mine Safety Administration, in conjunction with the Ministry of Emergency Management, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance, and the Ministry of Education, issued the Guidelines on Accelerating Intelligent Mine Development and Enhancing Mine Safety. This document provides a systematic plan from a top-level design perspective.

To strengthen technological innovation, we have approved the establishment of five key laboratories related to intelligent mines under the National Mine Safety Administration. We have coordinated to list five projects, such as intelligent tunneling and open-pit autonomous mining, in key national research and development programs. We have also advanced collaboration among mine enterprises, equipment enterprises, universities, and research institutes and achieved breakthroughs in research of key technologies and equipment.

To ensure standard-led development, we have released a system framework for intelligent mine standards and guided relevant departments to set up and revise related standards and specifications. We have issued a specification for intelligent mine data fusion and sharing, which has broken down data silos and eliminated information barriers.

In terms of increasing policy incentives, we have promoted support with approved increase of coal production capacity, the standardization of workplace safety, the central government budget for investment and the withdrawal and use of enterprise workplace safety expenses, and have advanced the inclusion of intelligent equipment in the scope of support for large-scale equipment renewal.

In terms of adhering to demonstration and guidance, we have worked with the National Energy Administration to launch the construction of intelligent demonstration coal mines and have worked with the Ministry of Industry and Information Technology to solicit and announce two batches of 92 typical application scenarios for mining robots. In recent years, a number of typical cases have emerged, such as the Yujialiang Coal Mine of CHN Energy, the Dahaize Coal Mine of China Coal Group, the Sanshandao Gold Mine of Shandong Gold Group and the Xingshan Iron Mine of Shougang Mining Corporation.

With joint efforts from all parties, positive progress has been made in the intelligent construction of mines. By far, the country has built 1,642 intelligent mining workings, the number of coal mines with intelligent workings has reached 859, with over 30 kinds of 2,640 robots and 1,328 unmanned vehicles in use, as well as 17,000 fixed positions achieving unmanned operations.

In the next step, we will continue to offer more support in terms of policy standards, scientific and technological innovation as well as the application of demonstration, so as to advance the intelligent construction of mines to a new level and to lay an important foundation for the intrinsic safety of mines. Thank you.

Xing Huina:

One last question, please.

Phoenix Satellite Television:

As we all know, this year, affected by extreme weather, many areas in China have been hit by rainstorms and floods, with some areas seriously affected. What targeted measures have been adopted by the National Commission for Disaster Prevention, Reduction and Relief and the Ministry of Emergency Management (MEM) in regards to disaster relief and assistance? What appropriate arrangements and assistance have disaster victims received? Thank you.

Wang Daoxi:

Thanks to the reporter from Phoenix Satellite Television for your concern and attention to flood prevention and resistance and disaster relief. As you mentioned, this year's climate trends deviated from the average level of normal years. There were many heavy rainfalls, lasting for extended periods of time. Flooding of rivers occurred early and developed rapidly. Floods, hailstorms and geological disasters severely affected a wide range of areas and caused heavy losses to certain areas. Therefore, the task of disaster relief and assistance is very arduous. To ensure that disaster victims receive appropriate arrangements and assistance, the National Commission for Disaster Prevention, Reduction and Relief and the MEM have mainly taken the following targeted measures, which can be summarized as "three focuses."

First, we have focused on disaster prediction and activated disaster relief responses in an efficient and orderly manner. Before the flood season, we have actively advanced the building of a disaster relief planning system, strengthened the professional training of disaster relief and disaster information delivery teams, enhanced the pre-positioning of disaster relief materials to the front line of rural areas and have improved the disaster relief and assistance capacity at the grassroot level. During disasters, we have predicted development trends of disasters as well as needs for disaster relief and assistance, activating disaster relief emergency response in advance. The national disaster relief response has been activated for a total of 21 times this year. After disasters, we have dynamically adjusted response levels according to changes in disaster situations and have upgraded response levels for five times, especially in response to the disaster situation in Hunan, we promptly upgraded the disaster relief response to the second level. We have given a coordinating role to the National Commission for Disaster Prevention, Reduction and Relief, stepped up joint consultations and assessments and have organized and dispatched joint working groups to key cities and counties deeply affected by disasters and facing difficulties in relief efforts to offer guidance and help for disaster relief and post-disaster recovery and reconstruction. Overall, our response to disaster relief has become more timely, more frequent and involves more practical measures, continuing to send a strong signal that "the country is in action."

Second, we have focused on the needs of disaster-hit areas and quickly allocated central disaster relief funds and materials. Since the beginning of the flood season, we have worked with the Ministry of Finance to allocate nine batches of 3.125 billion yuan for central disaster relief funds in advance, which fully ensures the urgent need for disaster relief with higher allocation efficiency and greater support for disaster relief. We have also coordinated central and local reserve resources and worked with the National Food and Strategic Reserves Administration to allocate 21 batches of 473,200 pieces of central disaster relief materials, including folding beds, bedding and family emergency kits, to meet the needs of the public at the different stages of temporary refuge, relocation and transitional resettlement. In response to disaster conditions in various areas and urgent needs of the people, we have repeatedly activated the government-society coordinated support mechanism for emergency supplies and have allocated a large supply of food, daily necessities and other scarce materials to better ensure people's basic livelihood. 

Third, we have focused on key links and have worked at the front line to strengthen supervision and guidance. We have organized a number of inspection groups, expert groups and steering groups to coordinate and resolve difficulties and problems on the spot, publicized and explained assistance policies face to face and guided local governments to carry out disaster relief and assistance work. In particular, we have paid close attention to the management and services of resettlement sites, guided the orderly organization of material distribution and have strived to ensure basic necessities such as food and lodging for disaster victims, especially ensuring that there is food, water, clothing, temporary safe shelter and access to timely medical treatment. In addition, we have also coordinated to provide medical, cultural and psychological services to help disaster victims feel secure and comfortable. We have also seen in many resettlement sites that in spite of suffering disasters, the people have actively helped themselves and each other, and some have even willingly participated in volunteer services, which is very touching. At present, the post-disaster recovery and reconstruction work is in rapid progress, including emergency repair of infrastructure in disaster-hit areas and reconstruction and repair of collapsed and damaged housing. We will continue to follow up and strengthen guidance. I believe that with the joint efforts of all parties, disaster-hit areas will promptly be rebuilt into beautiful homes! Thank you!

Xing Huina:

Well, today's briefing is hereby concluded. Thanks to all speakers and friends from the media. Goodbye everyone.

Translated and edited by Xu Xiaoxuan, Wang Wei, Liu Caiyi, Liu Sitong, Li Xiao, Ma Yujia, Yan Bin, Yuan Fang, Lin Liyao, Zhang Junmian, Liu Qiang, Xu Kailin, Liu Jianing, Li Huiru, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Li Chunlin, vice chairman of the National Development and Reform Commission (NDRC)

Mr. Li Fei, vice minister of commerce

Mr. Ren Duanping, director general of the Business Registration Bureau of the State Administration for Market Regulation (SAMR)

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

Chairperson:

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

Date:

Aug. 30, 2024 

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this briefing held by the State Council Information Office (SCIO). The Opinions on Refining the National Market Access System issued by the General Office of the Communist Party of China (CPC) Central Committee and the General Office of the State Council has been publicly released. Today, we have invited Mr. Li Chunlin, vice chairman of the National Development and Reform Commission (NDRC), and Mr. Li Fei, vice minister of commerce, to introduce the relevant information of the opinions and answer your questions. Also attending today's press conference are Mr. Ren Duanping, director general of the Business Registration Bureau of the State Administration for Market Regulation (SAMR), and Mr. Wang Shancheng, director general of the Department of Comprehensive System Reform of the NDRC.

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

Li Chunlin:

Good morning. Thank you very much for your long-term interest in and support for the development and reform work. I am also very pleased to have this opportunity to speak with you today on refining the national market access system.

As an important document for implementing the guiding principles of the third plenary session of the 20th CPC Central Committee, the General Office of the CPC Central Committee and the General Office of the State Council recently issued the Opinions on Refining the National Market Access System, the full text of which was released to the public on Aug. 21. Now, I will briefly introduce the background, significance and main content of the opinions.

Market access is a prerequisite for business entities to participate in economic activities. Implementing a unified market access system is a major decision and deployment made by the CPC Central Committee and the State Council. The third plenary session of the 18th CPC Central Committee proposed the implementation of a unified market access system, the 19th CPC National Congress clearly stated the need to implement a negative list system across the board for market access, and the 20th CPC National Congress further identified the market access system as one of the basic systems of the market economy. In recent years, the NDRC, together with the Ministry of Commerce, the SAMR, and other relevant departments, has resolutely implemented the decisions and deployments of the CPC Central Committee and the State Council, steadily promoting the development of the market access system. In 2018, the nationwide unified negative list for market access was issued, making China the first major economy to truly establish such a system. Four versions of the list have been released, with the number of items reduced from 151 in the 2018 version to 117 in the 2022 version, firmly establishing the "one list nationwide" management model for market access. Efforts have been made to further relax market access restrictions, with special measures implemented in Hainan, Shenzhen, the Guangdong-Macao in-depth cooperation zone in Hengqin, and Nansha in Guangzhou. A series of substantial reform measures have been introduced in areas such as commercial aerospace, international trading centers for electronic components and integrated circuits, unmanned systems in sea, land and air, and the modern seed industry. Market access efficiency evaluations have been carried out to promote reforms and improve the quality and efficiency of access services, ensuring the implementation of the market access system. Overall, the current market access system framework has been accelerated, supporting systems have been gradually improved, market access barriers have been effectively broken, and market dynamism and vitality have been further stimulated. This provides strong support for building a high-standard market system, a unified national market, and a high-standard socialist market economy.

As China enters a stage of high-quality development, higher requirements have been put forward for building a more refined market access system. The third plenary session of the 20th CPC Central Committee clearly required "refining the market access system to ensure greater accessibility for new forms of business and new sectors" and "doing more to remove barriers to market access." The opinions implement the guiding principles of the third plenary session, timely elevating the reform achievements of the market access-related systems and mechanisms to institutional arrangements, attracting widespread attention from society. This is also the first policy document issued at the central level specifically on improving the development of the market access system, which has important guiding significance.

The full text of the opinions consists of 10 articles, around 2,300 words, and is concise but rich in content. It revolves around "establishing an open, transparent, standardized and orderly market access system that fosters fair competition, clear rights and responsibilities, and robust oversight," making the latest deployments in aspects such as improving the management model of the negative list for market access, scientifically determining market access rules, setting reasonable market prohibition and permission access items, clarifying the adjustment procedures for market access management measures, strengthening the coordination of domestic and foreign investment access policies, orderly relaxing restrictions on access to the service industry, optimizing the market access environment for new business forms and new fields, expanding pilot programs for market access relaxation, ensuring the implementation of the market access system and enhancing organizational implementation. There are four highlights in the opinions:

First, we will continue improving list management to clarify the boundaries of government roles. The negative list mechanism serves as a critical tool for enhancing the market access system. It's essential to clearly define the government's role in market access, fully leverage the market's decisive role in resource allocation, and solidify these principles into a systematic framework. This approach expedites the shift from pre-approval to ongoing and post-event supervision. The opinions reinforce support for the "one list nationwide" model, addressing access rules, the determination of access items, and the procedures for adjusting access measures. This unified approach ensures the list's consistency, standardization, and authority, promoting more regulated market access management and better ensuring lawful and equal market entry for all business entities.

Second, we'll continue easing access restrictions to invigorate market potential and vitality. Market access is the first gateway to economic activity, and it's essential to progressively loosen these restrictions to facilitate the smooth flow of resources and foster a broader market space. We will implement a policy of easier entry coupled with strict oversight, opening up competitive sectors and significantly reducing access barriers for businesses. Furthermore, we will systematically ease access restrictions in the service sector. In particular, we will gradually cancel restrictions in those service industries that do not involve national security or social stability concerns, where robust market competition can improve the quality of supply.

Third, we will continue optimizing the market access environment and enhancing market entry efficiency. Market access is crucial for translating scientific and technological advances into productivity. We need to take a forward-looking approach in establishing a market access framework for new business models and sectors to better support the development of new quality productive forces. For the first time, the opinions target 10 emerging fields, including deep-water exploration, aerospace, aviation, life sciences, new energy, and artificial intelligence. This initiative encompasses guiding principles, platform support, the application and commercialization of research outcomes, and global research collaboration. Together, these efforts aim to tackle bottlenecks inhibiting the profound transformation and upgrading of our industrial systems, promoting innovative allocation of production factors and continuously boosting market access efficiency.

Fourth, we will continue expanding pilot programs for market access and dismantling implicit barriers to entry. It's vital to leverage reform trials and employ special policy tools to break down entry barriers in certain sectors and areas. The opinions require that we make deployments focusing on key areas and key productive forces in strategic emerging industries and future industries. We will use regulations, policies, technical standards, testing and certification, and data systems to remove various entry barriers, promoting the adoption of new technologies and products. Priority regions will be selected for market access trials, with phased special measures to ease access.

Moving forward, the NDRC, in collaboration with relevant departments, will implement the opinions and strengthen overall coordination. We will continue to refine the market access system, further optimize the access environment, and bolster development expectations. Our goal is to rapidly establish a new paradigm featuring "standard-driven access, list-based access, scenario-enhanced access, pilot-expanded access and regulation-backed access."

That concludes my introduction. Now, my colleagues and I are ready to answer questions. Thank you!

Xing Huina: 

Now, you may raise your hand to ask questions. Please identify the news organization you represent before asking.

CCTV:

We have noticed that the opinions lay out clear requirements for enhancing the negative list management model concerning market access. Could you share the key considerations behind this? What is the current progress on revising the updated edition of the market access negative list? Thank you.

Li Chunlin:

Thank you for the questions from the CCTV reporter. I am very glad to answer these questions. The market access negative list system and the revision of the list have attracted close attention from society. The negative list for market access clearly outlines sectors, fields and businesses that are off limit for investors and items which require government approval for market entry in our country. Governments at all levels take corresponding management measures in accordance with the law for matters involving market access. All types of business entities can fairly enter the sectors, fields and businesses not on the list in accordance with the law. Since the full implementation of the market access negative list system in 2018, the negative list has continued to shorten. As I mentioned, it has been reduced from 151 items to 117 items. The benefits of reform continue to increase with the list having undergone four dynamic revisions. The items have been reduced by about 60% compared with the pilot version. A large number of market entry restrictions in many fields such as elderly care and medical care have been loosened. Various market entities have more vitality and greater space to develop the economy and create wealth, so that the decisive role of the market in allocating resources can be fully exerted. At the same time, with the full implementation of the list, some new difficulties have also emerged. For example, the rules and standards for the establishment and adjustment of access measures are not sound enough, and there are still many barriers of various types at all levels to market access. The opinions adhere to a problem-oriented approach and make corresponding institutional arrangements.

In terms of improving "one list nationwide" management for market access, the opinions clearly state that all types of national access catalogs that have been compiled according to requirements, as well as industrial, investment, environmental and territorial space plans and other matters involving market access, shall be included in the negative list management. The national access system shall be promoted to strengthen integration and connection, intensify system integration and strive to achieve horizontal and vertical coverage. At the same time, the opinions state that it is strictly prohibited to establish access permits and add access conditions in breach of regulations and independently formulate negative lists for market access beyond the national negative list, or set up access barriers in the process of franchising, designated operation, testing and certification in violation of rules. In recent years, the NDRC has worked with relevant departments to clean up and cancel more than 20 negative lists related to market access set up in violation of regulations in various places, and the institutional rigidity has been continuously enhanced.

In terms of improving rules for market access, the opinions, for the first time, categorize and clarify the corresponding access rules according to the nature of different sectors and fields. For fully competitive fields, we implement wide access and strict management, and significantly reduce access restrictions. For fields involving national security, lifeblood of the national economy, layout of major productive forces, strategic resources development and major public interests, access restrictions can be set, but they must be carried out in accordance with laws and regulations. For new forms of businesses and new sectors, we respect the characteristics of their development, plan corresponding access systems in a forward-looking manner and better promote the development of new quality productive forces. For example, during the revision of the negative list for market access in recent years, a number of management measures, such as qualification licensing of firefighting technical service organizations, issuance of security training permits and permits for the establishment of nursing homes, have been canceled in succession. At the same time, access management is also implemented for important sectors such as financial holding companies in accordance with the law, which exemplifies this concept. 

In terms of improving the adjustment procedures for market access measures, the opinions detail specific requirements such as prohibition of entry and permission for access, as well as further propose that before adding or adjusting market access management measures the competent authorities should first conduct policy assessments and then apply for amendments to laws and regulations in accordance with legal procedures. Temporary access measures may be taken when major sudden risks to economic operation may occur, but they must be reported to the CPC Central Committee and the State Council for approval, which effectively strengthens the sanctity of the setting and adjustment of access policies. This also avoids the situation where individual departments or localities arbitrarily stop market access in certain areas, which is conducive to stabilizing market expectations.

These latest requirements put forward in the opinions have clarified the direction for the subsequent adjustment and implementation of the negative list for market access. Regarding the revision of the negative list for market access, the NDRC is currently working with the Ministry of Commerce, the SAMR and other relevant departments to promote the revision of the list in an orderly manner. The revised version has been formed and will be issued and implemented after approval in accordance with the prescribed procedures. The new version of the list will fully implement the requirements of the opinions as well as closely connect with the reform of the administrative approval system, the reform separating operation permits from business licenses and the new round of institutional reforms, promoting further reduction of items on the list and releasing more reform momentum for high-quality development. Thank you.

21st Century Business Herald: 

We have noticed that the phenomenon of "money can't buy satisfactory services" still exists. Could you please tell us what key measures will be taken next in terms of relaxing access to the service industry and improving the institutions and mechanisms for its development? Thank you.

Li Fei: 

Thank you for your question. I will answer this question. The third plenary session of the 20th Central Committee of the Communist Party of China has made important arrangements for refining the institutions and mechanisms for developing the service sector. The service industry is a crucial part of the national economy, a key support for the modern industrial system and a major player in driving economic growth, providing jobs, expanding investment, promoting consumption and improving people's livelihoods. In recent years, the Ministry of Commerce with relevant departments has continuously improved the policy system for the development of the service sector, and promoted the high-quality development of services in key areas, so as to meet the needs of industrial transformation and upgrading as well as the people's aspiration for a better life.

At present, the overall development of China's service industry shows signs of positive stability with service consumption maintaining rapid growth, investment in key areas expanding at an accelerated pace and service trade growing rapidly. However, challenges still remain, such as unsatisfying supply quality, untapped consumption potential and weak international competitiveness. Moving forward, we will work closely with relevant departments to focus on the following key areas:

In terms of continuously relaxing control over market access in the service sector, the opinions have made directional and targeted arrangements for relaxing market access, proposing to gradually remove access restrictions in service industries that do not involve national security or social stability and where sufficient market competition can enhance supply quality. At the same time, we will continue to ensure greater accessibility for business entities, eliminate unreasonable access restrictions and remove illegally set entry barriers.

In terms of accelerating the establishment of a new system of high-quality and efficient services, we will promote better alignment between supply and demand, foster high-quality development of service consumption, optimize supply, improve quality, enrich consumption scenarios and cultivate new growth points for consumption.

In terms of further promoting the deep integration of advanced manufacturing and modern services, we will focus on key links, propel high-quality development of producer services on a sector-by-sector basis and enhance the specialized, commercial and comprehensive service capabilities that target the manufacturing industry.

In terms of strengthening and refining service brands, we will cultivate producer service brands with international competitiveness, create service brands with high quality, strong innovation momentum and leading roles as well as leverage brand building to drive new growth in the service consumption market, thereby unleashing new consumption potential.

Thank you！

China News Service: 

We have noticed that previous pilot projects to relax market access were mainly carried out through the formation of special measures, such as the special measures introduced for Hainan, Shenzhen, the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and Nansha in Guangzhou. Could you brief us on the progress of these market access relaxation pilot projects and any considerations for the next step? Thank you.

Wang Shancheng: 

Thank you for your question. The opinions clearly state that efforts should be made to expand the scope of pilot projects for relaxing market access. The main considerations are as follows: on the one hand, the number of items included in the negative list for market access remains relatively high, and some items that are not yet ready to be fully opened nationwide need to be explored through pilot projects. On the other hand, market access policies for new business forms and new sectors also need to be continuously refined through pilot projects. By selecting certain regions to carry out these projects, we aim to promote the development of a more flexible and efficient market access policy system, gradually relaxing access and optimizing the environment in relevant sectors.

Since 2021, we have selected Hainan, Shenzhen, the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, and Nansha in Guangzhou to continue pilot programs to expand market access. We have used special measures to relax market access as a key strategy, introducing a series of specific measures in fields such as healthcare, finance, transportation, culture and education. We have effectively relaxed requirements for market access in areas like data property, aerospace, electronic components, integrated circuits, deep sea exploration and the modern seed industry. Major progress has been made in stimulating the vitality of business entities and facilitating the flow of production factors. For example, in Hainan, we proposed improving the market accessibility in the commercial aerospace sector and easing market access to spaceport construction. The first two commercial space rocket launch pads in Hainan are nearing completion, and several major industrial projects have been introduced, greatly promoting the country's commercial aerospace sector. Another example is the pilot program for developing unmanned systems for land, sea and air in Hengqin, Nansha in Guangzhou and Hefei in Anhui. This initiative has achieved the "six unifications" in standard systems, data centers, operational management and control, testing and certification, communication protocols, and policies and regulations. This has effectively removed market access barriers such as operational systems, airspace planning, data security and scenario openings. This lays a foundation for the wider application of unmanned systems across land, sea and air in larger regions and even nationwide.

Moving forward, we will implement the requirements of the opinions, increase efforts to pilot expanded market access and quickly gain reform experiences that can be replicated and promoted. 

First, we will conduct trials to allow access to new business formats and fields. Focusing on strategic emerging industries, key areas of future industries, and the layout of major productive forces, we will introduce additional market access measures for deep sea exploration, healthcare, new energy, and artificial intelligence. We will actively explore more efficient and streamlined access mechanisms, promote the application of innovative achievements in key areas, and improve overall market access efficiency.

Second, we will optimize the management of market access procedures. We will further simplify access procedures and optimize the approval process. When excessive approval conditions affect market entry, we will simplify the conditions through pilot programs. At the same time, through pilot projects, we will explore establishing a comprehensive regulatory system that aligns with relaxed market access policies. We aim to accelerate the formation of a framework combining government regulation, enterprise consciousness, industry self-discipline and social supervision.

Third, we will increase efforts to replicate and promote successful pilot experiences. The opinions require effective implementation of deployed special measures to relax market access, policy evaluation, and promotion of successful experiences. Recently, we have conducted evaluations and supervision of the special measures in Hainan and Shenzhen. We will promote and apply some mature pilot experiences and measures that can be replicated on a wider scale. Thank you.

Chengdu.cn:

My question is for the SAMR. What effective measures will it take to further improve the market access system, especially the registration and management system for business entities? Thank you.

Ren Duanping:

Thank you for your question. Market access is the prerequisite for economic entities to participate in economic activities, and the registration management system of business entities is the basis and key content of market access. The SAMR has thoroughly implemented the principles of the 20th CPC National Congress and the second and third plenary sessions of the 20th CPC Central Committee. We've adopted practical measures, actively promoted the improvement of the basic market economy system, accelerated the construction of a unified national market, and continued to improve the market access system. We've focused on deepening the reform of the business registration system based on subscribed registered capital, ensuring that subscriptions are paid on time as stipulated by law. We've deepened reform in key areas with an innovative spirit, strengthened system integration, reduced institutional costs of market access, and promoted a more mature and better-defined registration management system. This has spurred the innovation vitality and internal driving force of business entities, creating a first-rate business environment that is market-oriented, law-based, and internationalized.

Next, we will implement the opinions of the General Office of the CPC Central Committee and State Council on refining the national market access system, focusing on three aspects of work.

First, we will continue to deepen the reform of the business registration system based on subscribed registered capital. We will thoroughly implement the Company Law of the People's Republic of China and the State Council's provisions on the implementation of the Registration Management System for Registered Capital of the Company Law of the People's Republic of China. We will guide newly established enterprises to reasonably determine subscription terms in accordance with the law, steadily adjust the capital contribution terms of existing companies as per legal requirements, and promptly correct any obvious abnormal situations regarding companies' capital contribution periods and amounts. We will introduce measures for implementing company registration management, which will legally clarify the criteria and procedures for determining obvious abnormalities in registered capital, conditions and requirements for exempting and adjusting capital contribution terms, and separate register management. In high-security risk areas, we will work with relevant departments to study and establish legally classified scopes, proportions, and periods for paid-in registered capital. We will improve the management system for non-corporate market entities to ensure timely capital contributions in accordance with the law. We will accelerate the construction of a unified national registration system for market entities and strengthen smart access.

Second, we will continue to improve the legal framework for business entity registration. We will adhere to the new development philosophy, balancing development and security, vitality and order, and efficiency and fairness. We will maintain goal-oriented, problem-oriented, and reform-oriented approaches. We will accelerate the research and formulation of a basic legal system for business entity registration in accordance with the law. This will include clarifying the basic principles of registration management and unifying basic legal concepts and terms. We will also improve institutions and rules for managing business registrations, transfers, names, and leasing and contracting of market entities. Additionally, we will tighten legal penalties for business entity fraud. We will promote institutional innovation, fill institutional gaps, and develop legal systems and rules that effectively align with prevailing international commercial rules.

Finally, we will strictly enforce regulations against unfair competition and market intervention. We will advance both ex-ante measures and ex-post punishments, regulation and law enforcement, publicity and advocacy, and the correction of typical cases alongside institutional strengthening. These efforts will comprehensively remove market access barriers. We will strengthen supervision over both monopolistic and competitive businesses carried out by natural monopoly enterprises. This oversight aims to prevent these enterprises from abusing their dominant market positions in upstream and downstream competitive areas or from excluding or restricting market competition in these sectors. By focusing on the concerns of the public and businesses, we will advance anti-monopoly law enforcement to stop the abuse of administrative power that eliminates or restricts competition. Additionally, we will strictly implement the fair competition review system and resolutely rectify improper market interventions. These include the abuse of administrative power to restrict transaction partners or exclude and restrict business operators from bidding processes and other business activities. These efforts aim to remove restrictions and hindrances to market access for all entities.

That's all. Thank you.

Economic Daily:

To our knowledge, the NDRC has guided 10 provinces, including Yunnan, Guangdong and Fujian, in conducting pilot evaluations of market access effectiveness. The opinions proposed conducting evaluations of market access effectiveness nationwide. Could you talk about the relevant considerations and details?

Wang Shancheng:

Thank you for your question. Market access is key to balancing an efficient market with an effective government. The purpose of conducting market access evaluations is twofold. First, it aims to enhance the government's governance capacity by assessing the implementation of the market access policies and encouraging local governments to perform their duties efficiently in accordance with the law. Second, it focuses on improving market entry efficiency for businesses. By evaluating the environment for market access in various regions, we can promptly remove barriers, ensuring that all kinds of business entities can enter the market efficiently and smoothly.

Since 2021, the CPC Central Committee and the State Council have made important arrangements for establishing and implementing a market access effectiveness evaluation system. The NDRC has guided pilot evaluations in 10 provinces, including Fujian, Yunnan, Ningxia, Shanghai and Guangdong. After three years of exploration, these pilot regions have made significant progress in market access effectiveness evaluation. For example, Yunnan has evaluated the market access effectiveness of 16 prefectures (cities) and 129 counties (cities and districts), forming a provincial effectiveness index. Yunnan has actively promoted excellence through evaluation, and participants' scores have steadily improved, with positive feedback from business entities. The evaluation results have directly promoted adjustment and improvement in policies related to local tourism and reduced market access barriers. Anhui province has explored an evaluation model that considers both administrative bodies and business entities. The province has developed an indicator system tailored to the Yangtze River Delta region, and vigorously promoted "imperceptible" evaluation by constructing an information platform, improving access efficiency and ensuring the fairness of evaluation results. At present, the conditions for comprehensive performance evaluation are largely in place. A national general version of the index system has been developed, consisting of 18 indexes in five aspects, including the construction of a market access system, the removal of market access barriers, the implementation of access supervision, organizational mechanism guarantees, and the effectiveness of system implementation. A working model has been formed under the guidance of national ministries and commissions, with provincial (autonomous region, municipality) governments as evaluation subjects and municipal and county governments as evaluation objects, laying the foundation for the nationwide promotion of such evaluations.

Next, according to the arrangements made in the opinions, we will comprehensively carry out an evaluation of market access effectiveness. In terms of a timeline, we will further expand the scope of evaluation this year, and starting next year, we will aim to gradually achieve full coverage of market access effectiveness evaluations, making the evaluations a regular practice. Regarding evaluation indicators, the indicator system will consist of "common national indicators + specific regional indicators." The common national indicators will be uniformly formulated and published by the NDRC, while the region-specific indicators will be set by each locality based on their actual conditions to appropriately reflect local characteristics, thereby encouraging grassroots reform and innovation. As for the evaluation results, we will strictly implement relevant requirements. The results will primarily serve as a reference for localities in building market access systems, with a clear directive to avoid rankings and prevent any burden on localities or primary-level organizations in this regard. Through effectiveness evaluations, we aim to comprehensively reflect and scientifically assess the market access environment in various regions, thereby ensuring the solid implementation of market access system requirements and continuously improving the government's standardized and scientific management of market access. Thank you!

Science and Technology Daily: 

The Resolution adopted at the third plenary session of the 20th CPC Central Committee specifically mentions that we should "ensure greater accessibility for new forms of business and new sectors." We noticed that a special section in the opinions is dedicated to this, introducing many new highlights and concepts, with several pertaining to the frontier area of new quality productive forces. Could you elaborate on the considerations behind this?

Li Chunlin: 

Thank you for your question. I am a regular reader of Science and Technology Daily. The question that you raise concerning new quality productive forces is indeed very specialized. As you mentioned, the third plenary session of the 20th CPC Central Committee explicitly states the need to "ensure greater accessibility for new forms of business and new sectors," making special arrangements for the core issue of improving the market access system. Therefore, it is crucial to accurately grasp this key task and ensure that we align with standards and benchmarks in its implementation.

Currently, the new round of technological revolution and industrial transformation is developing rapidly, with disruptive technologies iterating and upgrading swiftly. However, there are still unclear access rules in some new forms of business and new sectors, with issues such as overly strict access management and a need for optimization in the access environment becoming increasingly prominent. Therefore, it is urgent to improve the relevant access systems and to relax access restrictions in an orderly manner in order to better promote the development of new forms of business and new sectors.

Let me give you an example: the low-altitude economy. Currently, many regions across the country are vying to develop the low-altitude economy. However, the development of the low-altitude economy brings about a series of issues, such as safety concerns, industry standards for products and regulations regarding flight access. For instance, what are the regulations like? What are the application scenarios? What is the development path for the industry? Though a prominent representative of new quality productive forces, the low-altitude economy could lead to issues like indiscriminate flying without proper regulations. Therefore, it is necessary to relax access restrictions in an orderly manner in order to better promote the development of new forms of business and new sectors. For instance, Article 7 of the opinions clearly outlines policy arrangements for optimizing the market access environment for new forms of business and new sectors, with many noteworthy measures:

First, regarding the optimization of access management methods, the opinions clearly state that with 10 new forms of business and new sectors, namely deep sea, aerospace, aviation, life and health, new energy, artificial intelligence, autonomic and trusted computing, information security, intelligent rail transit and modern seed industry, we should develop and implement specific plans to optimize the market environment for each field, promoting innovative allocation of production factors and improving access efficiency. The market access management for new forms of business and new sectors cannot simply follow the traditional administrative approval-based management model but should fully leverage market mechanisms. It should be guided by standards and scenarios to create a more flexible and resilient access management mechanism. Following the principle of "standards guiding, scenario opening, market driving, industry focusing and system upgrading," we should further optimize the access methods for new forms of business and new sectors. In the early stages of development, new forms of business and new sectors need nurturing, which requires providing appropriate application scenarios. Without application scenarios, there is no industrial development. Without standards, the industry will face various problems. In fact, this hinders the healthy, high-quality and rapid development of the industry to a certain extent. Therefore, it is essential to carry out top-level design and provide principles and pathways.

Second, is refining the innovation application mechanism. Currently, a large number of innovations struggle to reach the market due to many barriers between innovative achievements and the industrial system. Therefore, refining the innovation application mechanism is a critical aspect in improving market access, which is key to effectively bridging the gap between technology and the economy. The opinions propose leveraging promotion centers for advanced technology application and various innovation platforms for scientific and technological achievements application. It also calls for facilitating a smooth flow of industrial systems, innovation resources, capital, application scenarios and policy systems, thereby promoting the transformation of original, disruptive sci-tech innovations into actual productivity. For instance, under the policy of expanding market access, it clarifies that promotion centers for international advanced technology application can be established in comprehensive national science centers and international scientific innovation centers. The first such center, the International Advanced Technology Application Promotion Center in Hefei, Anhui province, was officially inaugurated in November 2022, with its board set to be established next month. The center has made notable progress in reforming the comprehensive allocation of new production factors such as technology, data, computing power, airspace and scenarios. Meanwhile, similar centers in Shanghai’s Pudong, Shenzhen and Guangzhou are also rapidly advancing. The opinions also call for fostering a market access environment for the application of innovations in frontier technology fields, and leading the application and standard development of all-space unmanned systems across land, sea and air. Additionally, the opinions advocate expediting the development of market access policy systems in areas such as green energy, and actively broadening market access for digital products. We will ensure the implementation of these key tasks while also providing experience and setting examples for innovation application in other frontier fields.

Finally, is refining the coordination of innovation resources. The opinions focus on key areas such as electronic information, computational science, deep-sea exploration, aviation and aerospace, new energy, new materials, biomedicine, quantum technology and the modern seed industry. The goal is to promote the establishment of collaborative research models in these cutting-edge fields by key enterprises, research institutions and related localities. Moreover, the opinions encourage active participation in the formulation of international market access rules and standards, and the facilitation of convenient and efficient innovation application in key areas. This is of great significance for strengthening strategic layouts in frontier fields, enhancing the capacity to allocate global advanced and high-quality production factors, and leading the development of rules and standards in new business forms and new sectors.

Refining the market access environment for new business forms and sectors is a new reform task assigned by the third plenary session of the 20th CPC Central Committee. We will follow the requirements of the opinions to the letter, ensure their thorough implementation, and effectively promote the high-quality development of new business forms and sectors through market access reforms. Thank you.

ThePaper.cn:

The opinions call for improving the management model of the negative list for market access, establishing sound market access rules, and implementing market access management in accordance with the law. Could you share how the market regulation authorities plan to advance related work? Thank you.

Ren Duanping:

Thank you for your question. In recent years, the SAMR has actively promoted the implementation of the market access negative list system, made government approvals more standardized, procedure-based and accessible, and continuously enhanced the operability and enforceability of the items on the list. Meanwhile, we have given full play to the foundational role of the market access negative list system, standardized operation scope registration and fulfilled the "dual notification" responsibility (before registration, the business authorities shall notify the applicants of the items that need to be reviewed and approved as well as the corresponding approval departments; after registration, the business authorities shall notify relevant review and approval departments of the registration information of the applicants). Through these efforts, we aim to expand electronic business license applications and actively provide standardized and convenient registration services. Moving forward, we will earnestly implement the Opinions on Refining the National Market Access System by focusing on four key areas.

First, we will continue to refine the market access negative list. We will continuously streamline and improve the items on the negative list in collaboration with the NDRC and MOFCOM. For listed items in the market regulation field, such as food production and operation, special equipment, as well as testing and inspection, we will advance the formulation and revision of relevant laws, regulations and departmental rules, and strengthen the development of safety technical standards, so as to continually enhance the operability and enforceability of the listed items.

Second, we will continue to make government approval services more standardized, procedure-based and accessible. In accordance with the laws, regulations and rules on the establishment and implementation of licenses, we will continue to improve the "Implementation Rules for Administrative Licensing Items in the Field of Market Regulation." For all administrative licensing items regarding market regulation, we will clearly define the basic elements, licensing conditions, application materials, approval procedures and approval time limits based on the category, profession and other features of the approval levels and objects. We will continuously optimize the approval process, shorten approval times and improve approval efficiency. Additionally. we will strengthen the standardization of approvals, enhance work ethics and refine window services. We will also improve the supervision mechanisms, and implement systems such as first-inquiry responsibility, full notification and time-limited completion to improve service efficiency.

We will continue to implement standardized registration for the scope of business operation. We will work to make sure that items requiring government approval are aligned with business activities, so as to provide more standardized registration services for business entities. We will proactively fulfill our responsibility of "dual notification. " Specifically, during the business registration process, we will notify enterprises of particular items related to their business activities that require government approval. We will also strengthen information sharing, promptly notifying relevant authorities of enterprise information so as to timely include these enterprises in regulatory oversight and achieve regulatory coordination.

We will continue to improve administrative services and improve the efficiency of market access. We will thoroughly implement the State Council's decision on promoting one-stop government services and take the lead in introducing this initiative to multiple items, such as restaurant registration. We will guide local governments to effectively optimize administrative processes, strengthen collaboration, streamline administrative systems and enhance data sharing. We will strive to greatly reduce the amount of time, steps, materials and trips needed for government services, in a bid to improve the sense of fulfillment among businesses and the public. We continue to expand the application for electronic business licenses. To date, 76.35 million business entities nationwide have downloaded electronic business licenses a total of 290 million times. These licenses have been used 493 million times for identity verification, online logins and as electronic signatures, with average daily usage exceeding 900,000 times. They have also been adopted by more than 1,700 business systems in various regions and government bodies, which has significantly reduced costs and improved efficiency. That concludes my response. Thank you.

Xing Huina:

The floor is open for one last question.

The Beijing News:  

The alignment of the "two lists," namely those concerning foreign investments and market access, have long attracted widespread attention. The opinion has also outlined specific requirements for enhancing policy collaboration related to access of both domestic and foreign investments. How will these developments impact the alignment of the "two lists"? Will there be special arrangements regarding this issue for the Hainan FTP and pilot free trade zones (FTZs)? Thank you.

Li Fei:

Thank you for your questions. Regarding the first question, the negative list for market access is a part of national treatment and is applicable to all types of business entities both at home and abroad. The negative list for foreign investment access, on the other hand, pertains specifically to foreign investment management, and is exclusively applicable to overseas investors. Therefore, these two lists have been closely aligned through adjustments.

First, in terms of institutional design, it is specified that the negative list for foreign investment access should outline special management measures, including requirements on equity and senior management. Areas outside the list will be managed in accordance with the principle of equal treatment for both domestic and foreign investments. Both domestic and overseas investors are subject to the regulations of the market access negative list.

Second, in addressing specific issues, these "two lists" have been adjusted in a coordinated manner. Market access restrictions lifted for foreign investments have also been removed for domestic investments. Likewise, market access restrictions imposed on domestic investments will, in principle, also apply to foreign investments as well, provided they do not violate international agreements and commitments.

Third, in policy implementation, we uphold the principle of ensuring national treatment, continuing to eliminate and remove all kinds of barriers that hinder fair market access without reducing the market access opportunities of existing business entities. This approach aims to ensure that all business entities are guaranteed equal rights to market access in accordance with the law. The requirements outlined in the opinion not only further clarify and consolidate established existing practices, but also serve as significant institutional achievements that strengthen the alignment of the "two lists."

Regarding the second question, as the pacesetter of the nation's opening-up endeavor, FTZs and Hainan FTP witness a strong foundation of reform and development, as well as vibrant foreign investments. They are subject to a much shorter list of restrictions for foreign investment access, and they enjoy a higher-level of opening up. As for market access, based on the unified national list, Hainan FTP and other related regions will implement special measures with further relaxed market access requirements.

Moving forward, we will provide guidance to related regions and fully put the "two lists" into practice. We will also continue to improve services for foreign enterprises and strive to develop practices that are applicable to other regions, in a bid to create an accessible environment featuring efficiency and convenience for all types of businesses. Thank you.

Xing Huina:

Today's press conference is hereby concluded. Thank you to all four speakers and friends from the media. Goodbye everyone.

Translated and edited by Wang Yiming, Wang Qian, Liao Jiaxin, Liu Qiang, Yan Bin, Yuan Fang, Mi Xingang, Huang Shan, Yang Xi, Liu Sitong, Xu Kailin, Li Huiru, Zhang Lulu, Xu Xiaoxuan, Ma Yujia, Zhu Bochen, Zhou Jing, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Zhang Jianhua, administrator of the National Energy Administration (NEA)

Wan Jinsong, vice administrator of the NEA

Song Wen, director general of the Department of Legal and Institutional Reform of the NEA

Li Chuangjun, director general of the Department of New Energy and Renewable Energy Sources of the NEA

Chairperson:

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

Date:

Aug. 29, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO).

Today, we are releasing the white paper titled "China's Energy Transition," and holding this press conference to introduce and interpret its main content. 

The white paper, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implements General Secretary Xi Jinping's important ideas and proposals on the high-quality development of energy. It systematically explains China's policies, principles and practices in advancing energy transition guided by the general secretary's new energy security strategy aimed at revolutionizing consumption, supply, technology and institutions, while strengthening all-round international cooperation. The white paper comprehensively introduces the positive achievements China has made in forming a new green energy consumption model, constructing a new energy system, developing new quality productive forces in the energy sector, and advancing the modernization of energy governance. It demonstrates China's efforts and contributions in continuously deepening international green energy cooperation, and advancing sustainable global energy development. The white paper calls on the international community to plan energy cooperation together, address global climate change, promote harmony between humanity and nature, and build a clean, beautiful planet. 

The white paper consists of a preface, main text and conclusion, totaling around 19,000 Chinese characters. The main text includes six sections: I. China's Path of Energy Transition in the New Era; II. Promoting Green Energy Consumption; III. Moving Faster to Build a New Energy Supply System; IV. Developing New Quality Productive Forces in the Energy Sector; V. Modernizing Energy Governance; and VI. Contributing to a Global Community of Shared Future.

The white paper is published in eight languages — Chinese, English, French, Russian, German, Spanish, Arabic and Japanese — by the People's Publishing House and the Foreign Languages Press, and is available at Xinhua Bookstore outlets across the country.

To help you better understand the white paper, we are glad to be joined today by Mr. Zhang Jianhua, administrator of the National Energy Administration (NEA), to introduce relevant conditions and answer your questions. Also present today are Mr. Wan Jinsong, vice administrator of the NEA; Mr. Song Wen, director general of the Department of Legal and Institutional Reform of the NEA; and Mr. Li Chuangjun, director general of the Department of New Energy and Renewable Energy Sources of the NEA. 

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

Zhang Jianhua:

Ladies and gentlemen, good morning. I am glad to join you today in witnessing the release of the white paper "China's Energy Transition." First, I would like to thank you for your interest in and support for China's energy sector. 

Since the 18th CPC National Congress, following a new energy security strategy aimed at revolutionizing consumption, supply, technology and institutions, while strengthening all-round international cooperation, China has accelerated its energy transition, and pursued a path of energy transition that is suited to its actual conditions and meets the changing needs of our times. Ms. Shou just introduced the structure of the white paper, and I will briefly introduce the main contents of the document from four aspects.

First, the white paper systematically expounds the fundamental concepts of China's energy transition, which can be summarized as five principles. Putting the people first, China has always prioritized meeting people's needs for a better life and ensured people have a greater sense of gain and fulfillment in energy use. Pursuing green and low-carbon development, we have accelerated building an energy supply system dominated by non-fossil fuels, and promoting harmony between humanity and nature. Serving national development, we have applied the practice of establishing the new before discarding the old and pursed an orderly transition, ensuring secure and stable energy supply while accelerating green transition development. Boosting innovation as an impetus for growth, we are relying on technological and institutional innovation to promote green, low-carbon, safe and efficient energy development. Expanding opening up and cooperation, China upholds the vision of a global community with a shared future, and works with all countries to promote sustainable energy development. China respects the rights of developing countries to independently choose their own transition paths, and advance energy transition in an equitable, just and orderly fashion. 

Second, the white paper comprehensively introduces China's achievements in energy transition practices, as demonstrated in the following four aspects: Clean energy development has made notable progress. By the end of 2023, the total installed capacity of power generation by wind and photovoltaic (PV) increased tenfold compared to a decade ago, with clean energy accounting for 58.2% of total installed capacity. Over half of the increase in total electricity consumption has come from newly added power generated by clean energy. The proportion of clean energy consumption in total energy consumption rose from 15.5% to 26.4%, while the proportion of coal consumption decreased by 12.1 percentage points. New achievements have been made in clean and effective energy utilization. In the past decade, China phased out over 100 million kilowatts of outdated coal power capacity, reducing pollutant emissions from the power sector by over 90%. The electrification rate of society-wide final energy consumption stood at 28%. Compared with 2012, energy consumption per unit of GDP decreased by more than 26%. Green energy technology has achieved new breakthroughs. China has built complete industrial chains for the R&D, design and manufacturing of wind and PV equipment, mastered the nuclear power technologies of third-generation pressurized water reactors (PWRs) as well as fourth-generation high-temperature gas-cooled reactors.  China has become a front-runner throughout the hydropower industrial chain. Institutional energy reform has achieved new progress. A diversified energy market structure is gradually taking shape, a unified and open energy market system is gradually improving, and an energy pricing mechanism reflecting market supply and demand is gradually forming. The role of the market in enhancing the consumption of clean energy, ensuring electricity supply, and optimizing resource allocation is increasingly evident. The third plenary session of the 20th CPC Central Committee made new deployments on further deepening energy reform, aiming to further improve the mechanisms for green, low-carbon development and accelerate the construction of a new energy system. 

Third, the white paper objectively demonstrates the contributions China has made to global green development. China has been a promoter and contributor in the global endeavor of energy transition. Over the past decade, China has been responsible for over 40% of the annual additions to global renewable energy capacity. The global share of non-fossil fuels in energy consumption rose from 13.6% to 18.5%, with China contributing 45.2% to this increase. Through sustained technological innovation, a sound system of industrial and supply chains, sufficient market competition, and the advantages of a super-scale market, China's new energy industry has developed rapidly and led to a drastic decrease in the costs of wind and PV power worldwide. China has strengthened cooperation on green energy with Belt and Road countries, and launched a significant number of "small yet smart" people-centered programs that provide these countries with clean, safe and reliable energy supply solutions.

Finally, the white paper also vividly illustrates China's proposal of working with other countries to jointly build a clean and beautiful world. Addressing the challenge of climate change and achieving sustainable energy use concerns the wellbeing of mankind. China is willing to work with the international community to expand pragmatic cooperation on energy transition; keep global energy industrial and supply chains stable, promoting open, inclusive and non-discriminatory flow of green energy products and technology; fulfill its role as a responsible major developing country together with other countries to improve global energy access; work with other countries to uphold the principle of equity, common but differentiated responsibilities, and respective capabilities to tackle challenges posed by climate change and protect our planet for the sake of human survival.

That is all for my introduction. Thank you.

Shou Xiaoli:

Thank you Mr. Zhang for your introduction. The floor is now open for questions. Please identify the media outlet you represent before asking your question.

CCTV:

Over the past decade of the new era, China has advanced transition and reform in the areas of energy production, consumption, technical systems and international cooperation. What have been the major achievements in China's energy transition? Thank you.

Zhang Jianhua:

Thank you for your question. I would like to invite Mr. Wan to answer this question.

Wan Jinsong:

Thank you for your question. This is a very good question, and also the key point illustrated in the white paper.

Over the past decade, the energy sector has resolutely implemented the new energy security strategy proposed by General Secretary Xi Jinping that aims at revolutionizing consumption, supply, technology and institutions, while strengthening all-round international cooperation. We have advanced the reform of the energy development model, providing a strong guarantee for high-quality economic and social development and the building of a Beautiful China. The achievements of energy transition can be summarized in five aspects.

First, China's energy transition has fast-tracked clean energy development. According to our statistics, as of the end of 2023, the total installed capacity of non-fossil energy power generation had reached over 15 GW, surpassing its thermal power capacity for the first time. The electricity generated from clean energy was about 3,800 TWh, accounting for nearly 40% of the country's total electricity generation, up by around 15 percentage points from 2013. Over the past decade, electricity generated from clean energy has accounted for more than 50% of the increase in total electricity consumption, marking a growing share of green energy in China's energy mix. 

Second, China's energy transition has underpinned high-quality economic and social development. Over the past decade, investment in fixed assets in the energy sector totaled about 39 trillion yuan, with nearly 4 trillion yuan per year on average. The capacity for primary energy production has grown by 35%, providing a strong basis for steady and sound economic growth. We have established a complete industrial chain for energy equipment manufacturing. Technological innovations in new energy, hydropower, nuclear power, power transmission and transformation, and novel energy storage have accelerated, and the clean energy industry has become a new pillar of China's modern industrial system. 

Third, China's energy transition has met the people's need for a better life. Over the past decade, China's energy demand and supply have remained balanced. Energy prices have also remained generally stable, effectively ensuring energy security for more than 1.4 billion people. Over 100 billion yuan from the central budget has been invested into upgrading rural power grids. In 2015, we enabled all areas of the country to have access to electricity. Per-capita electricity consumption has doubled from about 500 kWh to nearly 1,000 kWh over this period. The scale of household PV power installations in rural areas has reached 120 GW. This has led to an income increase of 11 billion yuan for farmers and the creation of around 2 million jobs per year. 

Fourth, China's energy transition has synergized with high-standard eco-environmental protection. Compared with 2012, energy consumption per unit of GDP has decreased by more than 26%. Green and intensive development of energy and resources has been realized. The quality of China's refined oil products has reached advanced international levels. The average coal consumption of coal-fired power generation has reduced to 303 grams of standard coal per kilowatt-hour, with SO2 and NOX emissions of advanced coal-fired power generation units now comparable to the upper limits for natural gas power units. China's energy transition has effectively promoted significant improvements in the eco-environment and the building of a Beautiful China. 

Finally, China's energy transition has contributed to the global energy transition and a clean and beautiful world. In 2023, China's investment in energy transition reached $676 billion, making it the world's largest investor in this field. China has continued to expand opening up and cooperation, and has provided quality clean energy products and services to the world. In 2023, China's exports of wind power and PV products helped other countries reduce carbon dioxide emissions by about 810 million metric tons. China's new energy industry has added to the global energy supply, helped reduce the cost of the global energy transition, and contributed to the global transition to green development and efforts to combat climate change. Thank you.

Phoenix TV:

Data from the International Energy Agency shows that in 2023, China's newly installed renewable energy capacity exceeded the total of other regions worldwide, making it the largest contributor to the development of the global renewable energy industry. How has this been achieved? Additionally, what positive impact do you believe the energy transition will have on global green and low-carbon development? Thank you.

Zhang Jianhua:

Thank you for your questions. I'll address them. China resolutely follows the philosophy of green development in recent years, thoroughly transforming its growth model. By the end of 2023, China's installed capacity for renewable energy generation accounted for about 40% of the global total. Over the past decade, China's annual additions consistently comprised more than 40% of the global total, exceeding half in 2023. This has continually provided an impetus for global green development. The rapid growth of China's renewable energy sector can be attributed to three main factors:

First, continuous technological advancement. China has promoted initiatives like PV leader bases and large-scale new energy bases. These projects have promoted the demonstration and application of new technologies and accelerated the iteration and upgrade of technologies and products. Innovations have flourished in technologies such as PV high-efficiency crystalline silicon cells and perovskite cells. New world records for conversion efficiency have been repeatedly set, with mass-produced advanced crystalline silicon PV cells now exceeding 25% efficiency. Wind power technologies like long blades and high towers are globally leading, with offshore wind turbines reaching a maximum unit capacity of 18 megawatts.

Second, a complete industrial and supply chain. After years of development, China has built a relatively complete industrial and supply chain for new energy sources such as wind and PV. At the same time, China has actively integrated into the global clean energy industrial chain, sharing high-quality clean energy products worldwide. Chinese wind and PV technologies and products are exported to many countries and regions, supporting countries, especially developing ones, to access clean, reliable, and affordable energy.

Third, a favorable market environment. Amid rapid changes in the energy landscape both domestically and abroad, the Chinese government has dynamically improved policies and measures on the price of on-grid electricity generated from renewable energy sources, for promoting the absorption of electricity generated from new energy sources into power grids, and market allocation. These measures have fully leveraged the advantages of China's vast market to promote the healthy development of new energy. China has fostered an equal, open and inclusive market environment for new energy. This approach has attracted participation from various sectors of society in new energy development, fully unleashing the innovation vitality of the market. For example, China's PV industry now boasts over 100 listed companies.

As the world shifts toward green energy, China is accelerating its own renewable energy development while actively sharing high-quality and affordable clean energy products globally. This has effectively driven down costs for wind and PV development worldwide, providing tangible green power for the world's energy transition. It has created new opportunities for deepening international cooperation in clean energy and contributed China's strength to the global energy transition. Thank you.

Bloomberg: 

Many analysts have noted the staggering growth of clean energy generation this year and how it's been able to reduce thermal power generation over the summer months. Some speculate that China may have already peaked the emissions years before its 2030 target. What is the NEA's take on those assessments and does it think it's possible that China has already reached the peak emission? Thank you.

Zhang Jianhua:

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

Song Wen:

Thank you for your question. As you noted, China has maintained strong momentum in clean energy development, which my colleague illustrated with relevant data earlier. General Secretary Xi Jinping has emphasized that we pursue the goals of peak carbon dioxide emissions and carbon neutrality not under compulsion but of our own accord. Our commitment to these goals is unwavering. Energy is a key area for achieving peak carbon emissions and carbon neutrality. Following the decisions and arrangements of the CPC Central Committee and the State Council, we're actively promoting green and low-carbon energy transition based on China's energy and resource endowment.

As of the end of July, China's installed renewable energy capacity had reached 1.68 billion kilowatts, over 54% of total capacity. Over the past decade, China's growth in non-fossil energy consumption has contributed more than 40% to the global total. Annual non-fossil power generation increased by 2.2 trillion kilowatt-hours, equivalent to reducing carbon dioxide emissions by approximately 2 billion tons. This has notably curbed overall carbon emission growth across society. However, it is important to recognize that China is still a developing country. We are advancing the modernization of a huge population, which means energy demand will continue to grow as people seek better lives. There are also increasing uncertainties and unpredictable factors. Therefore, it still requires arduous efforts to achieve the dual carbon goals.

The third plenary session of the 20th CPC Central Committee proposed establishing new mechanisms to facilitate the transition from controlling the total amount and intensity of energy consumption to controlling the total amount and intensity of carbon emissions. Since the beginning of this year, the CPC Central Committee and the State Council have issued a series of policy documents on energy conservation and carbon reduction, including the recently issued Opinions on Accelerating the Comprehensive Green Transformation of Economic and Social Development and the Work Plan for Accelerating the Establishment of a Dual Control System for Carbon Emissions. These documents outline the framework for green, low-carbon development and the dual carbon targets in the coming years. The energy industry is also conducting preliminary research for the 15th Five-Year Plan, focusing on goals and tasks for the next phase of the energy transition. We'll intensify efforts to promote high-quality renewable energy development, advance the green and low-carbon energy transition, and aim to increase the proportion of non-fossil energy consumption by about 1 percentage point each year. We're capable and confident of reaching peak carbon emissions before 2030 as planned. Thank you.

Xinhua News Agency:

The third plenary session of the 20th CPC Central Committee proposed deepening reforms comprehensively and modernizing China's system and capacity for governance. What capabilities will China strengthen in terms of the energy transition? Thank you.

Zhang Jianhua:

Thank you for the question. I'll answer it. The energy transition is a broad and profound systemic transformation of the economy and society, requiring a significant enhancement of the energy governance system and modernization of governance capacity. In recent years, China has leveraged the decisive role of the market in resource allocation through various measures, such as promoting reform, improving policies, and ensuring the rule of law. These efforts have given better play to the role of the government and created a favorable development environment for the energy transition. As you said, the third plenary session of the 20th CPC Central Committee proposed deepening reform of the energy management system and accelerating the planning and development of a new type of energy system, providing a clear direction for building the energy governance system and capacity. Next, we will focus on four key areas of work.

First, we need to deepen energy reform. We will establish a unified national electricity market, continue expanding the coverage of markets for spot trading of electricity, and further improve the allocation of electricity resources. We'll also establish and improve mechanisms for green and low-carbon development, accelerate the cultivation of green electricity and green electricity certificate markets, and improve the policies for promoting the absorption of electricity generated from new energy sources into power grids and for the regulation of such energy. Additionally, we will promote the safe, reliable, and orderly replacement of fossil fuels with non-fossil energy. We will promote independent operation of natural monopoly businesses and advance market-oriented reforms in the competitive areas.

Second, we need to improve energy legislation. We will formulate an energy law, compile an environmental code, accelerate revisions to the Renewable Energy Law, Energy Conservation Law, and Electric Power Law, and strengthen the enactment of laws on energy saving and efficiency improvement as well as prioritizing clean energy development and utilization. Moreover, we will implement incentive and constraint systems such as green certificates to promote green energy consumption and support green and low-carbon technology innovation. We will also promote the formulation and revision of laws and regulations guiding green and low-carbon energy use in key sectors.

Third, we need to strengthen development planning. We'll conduct thorough research and preparation for the 15th Five-Year Plan for energy, fully leveraging the strategic guiding role of national energy planning in major project layouts, public resource allocation, and social capital investment. We will balance development and security, clarifying an energy transition timeline and roadmap. Additionally, we'll improve standards for green and low-carbon energy development.

Fourth, we need to strengthen energy oversight. We will enhance the supervision of major energy plans and the implementation of clean energy projects. We'll increase oversight of the absorption of electricity generated from renewable energy sources into power grids and the construction and operation of adjustable energy supplies to ensure the effective application of major energy transition policies. We will also tighten supervision of market transactions, pricing mechanisms, and information disclosure to ensure the effective implementation of rules for new energy market participation. Thanks.

Reuters:

China's 14th Five-Year Plan set a goal to reach 1,200 gigawatts of installed solar and wind capacity by 2030. As of July, China achieved this target six years ahead of schedule. Since new energy development has exceeded expectations, will China further raise its 2030 target? Additionally, in 2025, the Paris Agreement requires signatory countries to propose their nationally determined contributions (NDCs) for 2035. Will China increase the ambition of its energy transformation targets in its next NDC? Thank you.

Zhang Jianhua:

Thank you for your questions and interest in our energy industry, particularly new energy development. We are very grateful. I'll defer to Mr. Li Chuangjun for the answer.

Li Chuangjun:

Thank you for your questions. On Dec. 12, 2020, President Xi Jinping announced at the Climate Ambition Summit that China's installed capacity for wind and solar power would exceed 1.2 billion kilowatts by 2030. China's energy industry has earnestly implemented the important instructions of General Secretary Xi Jinping, resolutely carried out the policies and deployments of the CPC Central Committee and the State Council, and vigorously promoted the high-quality development of wind and solar power. The scale of wind and PV installations has reached new milestones. By the end of July this year, China's installed capacity of wind power reached 471 million kilowatts, and that of solar power reached 735 million kilowatts, resulting in a combined capacity of 1.206 billion kilowatts.

China's rapid development of wind and solar power has significantly contributed to addressing climate change, ensuring energy supply, promoting the clean and low-carbon transition, and advancing global new energy development. China has become a key leader and promoter in global efforts to combat climate change and reduce carbon emissions. At the same time, to achieve carbon peaking and ensure the proportion of non-fossil energy consumption reaching about 25% of total energy use by 2030, China needs to continue promoting large-scale, high-quality development of wind and solar power.

Regularly updating NDCs is a bottom-up global climate governance mechanism established by the Paris Agreement. Under this mechanism, each party sets its climate targets based on national conditions. Since the beginning of this year, following the Paris Agreement and related decisions, relevant departments in China have been actively studying and evaluating the next round of NDC targets in light of new situations and changes. It is important to emphasize that China's commitment to its dual carbon goals remains unwavering. However, the path, method, pace and intensity to achieve these goals should and must be determined by China itself, without external influence. China will adhere to the principle of common but differentiated responsibilities and respective capabilities, and set well-conceived new goals and measures in light of the country's national realities. This will contribute significantly to jointly addressing climate change and building a clean and beautiful planet. Thank you.

21st Century Business Herald:

The action plan for quickly building a new type of power system (2024-2027) was released to the public recently. Could you please provide an update on the current progress of constructing such a system and outline the considerations for future steps? Thank you.

Zhang Jianhua:

Thank you for your questions. Mr. Wan will address them.  

Wan Jinsong:

Thank you for your questions; they are indeed pertinent. To drive the energy transition, it is imperative to vigorously develop new energy sources. To achieve this, we must expedite the construction of a new type of power system that is clean and low-carbon, secure and adequate, economical and efficient, supply-demand coordinated, flexible and intelligent. In recent years, our energy sector has strengthened overall planning, advancing the construction of the new power system through policies, platforms, capabilities and markets.

In terms of policies, we are continuously refining the policy framework for the new power system. Recently, as you have noted, the National Development and Reform Commission, the NEA, and the National Data Administration jointly issued the action plan to quickly build a new type of power system (2024-2027). Based on the current stage of development, the plan focuses on key areas urgently needing breakthroughs in the near term for the construction of the new system. By selecting typical and representative directions to advance work, it aims to address major issues through sharply focused efforts. We've proposed nine special actions to coordinate the development of the new power system. For instance, the plan proposes expanding the network of electric vehicle (EV) charging facilities. This will not only meet the charging needs of EVs but also promote greater new energy consumption through vehicle-grid integration. 

In terms of platforms, we're strengthening the power grid's role in resource allocation. We continue to improve the main grid structure, advance the planning and construction of trans-provincial and trans-regional transmission channels, and upgrade and transform distribution networks. By the end of 2025, China's trans-provincial and trans-regional transmission capacity is expected to reach 360 million kilowatts. The distribution network will be capable of accommodating around 500 million kilowatts of distributed new energy sources and approximately 12 million charging piles. The grid's capacity to carry and allocate power resources will significantly improve.

In terms of capabilities, we're strengthening flexible regulation capacity. We continue to promote the "three reforms" of coal-fired power plants in energy conservation, heat supply and flexibility. These efforts further improve coal power's efficient regulation performance and clean, low-carbon levels. We're coordinating the development of regulatory resources such as pumped storage and new energy storage while deeply tapping into demand response and regulation capabilities. Since the beginning of the 14th Five-Year Plan period, the country has completed the "three reforms" for coal-fired power units exceeding 740 million kilowatts. As of the end of June this year, the installed capacity of pumped storage nationwide reached 54.39 million kilowatts, while the installed capacity of new energy storage was 44.44 million kilowatts.

Regarding markets, we're fully leveraging their decisive role in resource allocation. We're actively promoting the construction of a unified national electricity market system. Through market transactions, we aim to guide the efficient and rational use of electricity, invigorate the vitality of business entities, and promote the large-scale optimization of electricity resources. In 2023, the volume of electricity traded in the Chinese power market accounted for 61.4% of total electricity consumption nationwide.

Looking ahead, we'll adhere to planning-led development, focusing on research and preparation for the 15th Five-Year Plan for energy and electricity development. We'll establish and improve working mechanisms, issue implementation plans for special actions, and efficiently and orderly advance the implementation of various actions for the new power system. We'll continuously enhance the grid's capacity for absorbing, distributing, and regulating clean energy. Thank you.

Guangming Daily:

I am particularly interested in issues related to sci-tech innovation. Sci-tech innovation is the core driving force behind China's energy transition. I've also noticed that the white paper outlines China's achievements in sci-tech innovation related to the energy transition. Could you please elaborate on the specific measures China has taken in this regard? Thank you.

Song Wen:

Thank you for your question. China has deeply implemented its innovation-driven development strategy in recent years, strengthening top-level design for energy technology innovation. We've established a "four-in-one" energy sci-tech innovation system that integrates major technology R&D, major equipment development, major demonstration projects and sci-tech innovation platforms. This approach promotes the deep integration of innovation and industrial chains, achieving important phased progress.

We're focusing on three key initiatives. First, we're promoting collaborative innovation. Leveraging major sci-tech projects and innovation platforms and the construction of major projects in the energy sector, we're strengthening collaborative innovation between industries, universities, research institutes, and end-users with enterprises as the main body. We've established and improved mechanisms for tackling key technologies and promoted the effective integration of technology R&D, result commercialization, and demonstration projects. Second, we're promoting the improvement of the policy framework. We've issued a series of strategic plans and industrial policies for sci-tech innovation in the energy sector, formulating innovation roadmaps and timelines. These support the development of new industries, models, and business forms, such as new energy storage, hydrogen energy, and the digital and smart transformation of the energy sector. Finally, we're accelerating the transformation of scientific achievements. We've continued to demonstrate pioneering major technological equipment and expedited the conversion of major energy sci-tech breakthroughs into real-world productive forces.

Next, the energy industry will continue to strengthen the role of technological innovation as the primary driving force, focusing on three key areas: First, we will fully unleash innovation potential. We will leverage the leading and driving role of innovation platforms to accelerate the overall efficiency of the energy technology innovation system, with enterprises as the primary contributors. Second, we will vigorously foster and develop new quality productive forces. We will promote technological advancements in areas such as new energy, nuclear power and smart grids. This includes actively nurturing new technologies, industries and business models, turning energy technologies and related industries into new growth drivers for industrial upgrading. Third, we will enhance the transformation and application of achievements. We will rely on major projects to promote breakthroughs, demonstrations, and the adoption of energy technologies and equipment. By creating a favorable environment for the early adoption of energy technology outcomes, we aim to continuously advance the iterative upgrading of new technologies and products through engineering applications. Thank you.

China Electric Power News:

Data shows that from 2013 to 2023, China maintained an average annual economic growth rate of 6% with an average annual energy consumption growth rate of 3.2%. Meanwhile, China's energy intensity decreased by a total of 26.1%, making it one of the fastest countries in the world in reducing energy intensity. How has China's energy usage evolved compared with the past? And what measures will be taken to consolidate this positive trend? Thank you.

Zhang Jianhua:

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

Li Chuangjun:

Thank you for your questions. Green is the cornerstone of ecological civilization, and China firmly upholds and practices the belief that lucid waters and lush mountains are invaluable assets. Since General Secretary Xi Jinping proposed the new energy security strategy of "Four Reforms and One Cooperation" in 2014, China has undertaken a series of green innovation initiatives, leading to an accelerated transformation in energy consumption patterns. As Mr. Zhang mentioned earlier, this transformation is primarily reflected in three key areas:

First, energy utilization has become more streamlined and efficient. China has consistently adhered to the principle of prioritizing energy conservation, enhancing efficiency in key energy-consuming sectors, and firmly curbing unreasonable energy consumption. Over the past decade, China has become one of the fastest countries in reducing energy intensity globally, resulting in an approximate saving of 1.4 billion metric tons of standard coal. As you mentioned, we have supported an average annual economic growth rate of 6% with an average annual energy consumption growth rate of 3.2%.

Second, the shift toward cleaner, low-carbon energy consumption has accelerated. The energy consumption structure has continued to optimize. Over the past decade, the proportion of coal consumption has decreased by a total of 12.1 percentage points, while non-fossil fuel consumption has more than doubled, with the level of electrification increasing by about 7 percentage points. In 2023, China's wind and PV power generation exceeded the electricity consumption of urban and rural residents, meaning that one-third of the electricity consumed nationwide was green electricity. The quality of oil products has achieved a three-level upgrade from the National III to National VI standards, and the population using natural gas has increased by 300 million, reaching 560 million people. Additionally, pilot applications of nuclear energy for heating and steam supply have been successfully implemented.

Finally, the concept of green energy consumption has rapidly taken shape. China actively promotes green and low-carbon lifestyles, vigorously advocates the excellent Chinese tradition of diligence and thrift, and is fostering a shift in lifestyle and consumption patterns toward simplicity, moderation, green, low-carbon and healthy living. We have launched campaigns to promote green living, organized themed activities such as National Ecology Day, stepped up efforts to promote green and low-carbon products, and encouraged the public to prioritize green transportation methods such as public transportation, cycling and walking.

Since the beginning of this year, documents such as the national guidelines to ramp up the green transition of socio-economic development and the action plan for energy conservation and carbon reduction for 2024-2025 have been implemented. These documents provide comprehensive guidance on promoting green transformation in key sectors, including industrial layout, spatial patterns, technological innovation and policy support. Going forward, we will ensure the effective implementation of these measures, actively expand green consumption, and accelerate the formation of green and low-carbon production and lifestyles. Thank you.

National Business Daily:

The white paper introduces the status of China's energy transformation. What advanced experiences and practices does China have in energy transformation? And what solutions has China contributed to the global energy transformation? Thank you.

Zhang Jianhua:

Thank you for your questions. I will address this. China's energy transformation faces two main challenges: ensuring energy security and accelerating green and low-carbon development. China has proposed a new energy security strategy and achieved significant results in energy transformation, forging a path that aligns with our national conditions and meets the requirements of the times. Our work has focused on five key areas:

First, we have established the vision of building a global community of shared future. We have proposed and implemented the vision of a global community of shared future and a community of life for humanity and nature, and taken an energy transition path of openness and cooperation to promote global sustainable development. Adhering to the principles of extensive consultation, joint contribution, and shared benefits, we have deepened energy transition cooperation with all countries under the Belt and Road Initiative framework and contributed China's strength to global green and low-carbon energy transition, in a bid to benefit people and the world.

Second, we have turned development blueprints into tangible projects. China has set goals for peak carbon emissions and carbon neutrality, fully harnessing the guiding role of national strategic plans. We have formulated medium- to long-term and five-year overall plans for the energy sector as well as plans for the development of renewable energy. These set specific goals, tasks and paths for green and low-carbon energy transition and development, which we have steadfastly advanced.

Third, we have focused on coordinating supply and demand. We have taken solid steps in "addition and subtraction" in this regard. On the supply side, we have delivered a strong performance in "addition" by improving the quality and expanding the quantity of non-fossil fuels. We have vigorously developed non-fossil energy, continuously optimized the energy structure and increased the proportion of non-fossil fuels in new energy demand. On the consumption side, we have excelled in "subtraction" through energy conservation and carbon reduction. Adhering to the principle that energy conservation is a primary energy source, we have tightened control over fossil fuel consumption, accelerated the clean and efficient use of fossil energy, and mobilized all sectors of society to use green energy and implement clean substitutes.

Fourth, we have established the new before abolishing the old and advanced energy transition in a well-ordered way. We have coordinated development and security, accelerating the transition while ensuring a safe and stable supply of energy. We have expedited the construction of a new electricity system, boosted the capacity of power grids to absorb new energy sources, and implemented reliable substitutes for fossil fuels in a well-ordered way. At the same time, we have also given full play to the supporting and guaranteeing role of traditional energy, promoting synergy and complementarity between new and traditional energy sources.

Fifth, we have balanced fairness and efficiency. On the one hand, we have intensified efforts to develop the energy market, promoting investment in new energy through market price signals. We have guided the transition by emphasizing the roles of thermal power as a basic guarantee and in systematically regulating power use. We have optimized energy consumption behavior and stimulated social demand for green energy. On the other hand, we have strengthened law-based governance, improving the legal framework for energy transition. We have strengthened market supervision, optimized public services, and created a stable, fair, transparent and predictable development environment for all types of business entities. This approach ensures an organic unity of efficiency and fairness in energy transition. Thank you.

Cover News:

China's EV industry has developed rapidly in recent years, but charging congestion occurs in some areas and during certain periods. What has the NEA done to improve EV charging infrastructure? Thank you.

Zhang Jianhua:

Thank you for your question. I'll invite Mr. Wan to respond.

Wan Jinsong:

Thank you for your question. China places great importance on the development of EV charging infrastructure, viewing it as crucial for promoting green, low-carbon energy transition and high-quality development in the transportation sector. Generally, national charging services for EVs have largely met the needs of the new energy vehicle (NEV) industry and the public's travel needs. However, as you mentioned, in some areas and during certain periods, such as holidays, particularly busy expressway service areas may have queues for EV charging. To address this issue, in recent years, the NEA has been committed to making improvements in three aspects and advancing its efforts in two ways.

First, we have improved the policy system. We issued policy documents, including the Implementation Opinions on Further Improving the Guaranteed Service Capacity of Electric Vehicle Charging Infrastructure. These documents have provided policy support and outlined specific work arrangements for layout plans, construction and operation, supporting power grids, and price rewards and subsidies.

Second, we have improved the EV charging network. According to the latest statistics, China had 10.6 million charging facilities as of July 2024, effectively meeting the charging needs of more than 25 million NEVs. In downtown areas of first-tier cities, the public charging service radius is already equivalent to gas stations. At present, charging piles have been installed at 95% of expressway service areas, forming an inter-city charging network covering "10 vertical, 10 horizontal and two rings of expressways" across China. Over one-third of the country's provincial-level regions have built charging piles in all their towns and villages.

Third, we have improved standards for EV charging. We issued 106 standards related to EV charging facilities, covering 21 professional fields and improving safety regulations across the industrial chain. At present, China's high-power direct current charging standard has reached a world-class level, with breakthroughs in wireless charging, roaming charges and other fields. The country's charging standard system is now on par with those of the United States, Europe, and Japan.

First, we should promote the rapid upgrading of charging technology. Currently, China has already established multiple routes of technology development, including conductive charging, battery swapping and wireless charging, with the full localization of DC charging power modules. Over the past five years, costs have been reduced by 90%. We have spearheaded globally the introduction of charging methods, such as charging pantograph s and group charging and control, rapidly popularizing high-power charging technology and achieving demonstration applications of vehicle-grid interaction.

Second, we should foster an industrial ecosystem. Currently, private enterprises account for over 70% of the equipment scale among charging station operators. We have gradually established a user-centric charging service system to ensure "someone builds, someone manages and sustainability." By integrating charging cloud services with industries, such as automobiles, finance and transportation, we have formed an "internet + charging" industrial ecosystem.

Next, we will accelerate the construction of a high-quality charging infrastructure system in accordance with the requirements of the action plan to build a system for new energy sources between 2024 and 2027 to support the green and low-carbon development of the transportation sector. We believe that with the continuous improvement of our country's charging infrastructure construction layout and service system, the issues of slow and difficult charging in some regions, and at specific times, will be further alleviated, and the charging experience for car owners will become more comfortable. Thank you!

Shou Xiaoli:

Due to time constraints, last question please.

Beijing Youth Daily:

Regarding non-fossil energy, I'd like to specifically ask about nuclear power. In recent years, China has achieved remarkable growth in terms of both scale and speed in developing nuclear power and has established a complete industrial chain for nuclear power technology. How can China's nuclear power industry ensure safer, greener, more efficient as well as diversified development in the future? Thank you.

Zhang Jianhua:

Thank you for your question and for your interest in our nuclear power industry. Nuclear power may be a niche product, but it is indeed a clean, low-carbon and efficient high-quality energy source, serving as an important base-load power source in the power system. Developing nuclear power is of great significance for ensuring energy security, promoting a green and low-carbon energy transformation, and helping achieve the goals of reaching peak carbon emissions and carbon neutrality. China's nuclear power industry actually started in the 1980s. After 40 years of exploration and practice, we have established a complete industrial system and are one of the few countries in the world with a complete nuclear power industrial system. The past decade of the new era has especially been the fastest period of development for our country's nuclear power industry, achieving historic accomplishments. We have accumulated rich experience and engineering capabilities in nuclear power technology research and development, engineering design, equipment manufacturing, construction, and operation.

You may have noticed that last week, the State Council approved five new nuclear power projects, totaling 11 units. Currently, China has approved a total of 102 nuclear power units in operation and under construction in the mainland, with a total installed capacity of 113.13 million kilowatts. This ranks first in the world. Currently, 56 units are in operation with an installed capacity of 58.08 million kilowatts. The 46 approved units, including those currently under construction, have an installed capacity of 55.05 million kilowatts. Therefore, combining both operational and under-construction units, China ranks first globally.

In recent years, our country's operational nuclear power units have maintained high levels of power generation, fully leveraging their role as baseload power sources. Although nuclear power accounts for less than 2% of the country's total installed capacity, it generates nearly 5% of the total electricity output. In particular, nuclear power has become an important supporting and primary power source in eastern coastal regions. In five provinces—Liaoning, Zhejiang, Fujian, Guangdong and Hainan—nuclear power accounts for more than 20% of the total electricity generated, playing a vital role in ensuring power supply.

The 20th National Congress of the CPC also made strategic plans for the active, safe and orderly development of nuclear power, charting the course for nuclear power development in the new era. In the future, we will follow the central government's deployment, balancing development and safety. We will adhere to the strictest standards for planning and approval, the highest quality for project construction, the most rigorous requirements for operation and management as well as the strictest measures for supervision and regulation to ensure steady and orderly construction progress. We will actively promote the comprehensive utilization of nuclear energy in heating, steam supply and seawater desalination, steadily increase the proportion of nuclear power in energy and electricity consumption as well as support the energy revolution and green and low-carbon development. At the same time, we are actively participating in global nuclear power construction, sharing China's experience and contributing to the global effort to combat climate change. Thank you.

Shou Xiaoli:

Thank you, Mr. Zhang Jianhua. Thank you to all the presenters and to all the journalists for participating. That's all for today's press conference. Goodbye!

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

Read in Chinese

Speakers:

Mr. Qi Yanjun, executive vice minister of public security

Mr. Qiu Baoli, director general of the Bureau of Public Security Management of the Ministry of Public Security (MPS)

Mr. Li Jiantao, director general of the Bureau of Environmental Resources, Food and Drug Crime Investigation of the MPS and director general of the Bureau of Intellectual Property Crime Investigation of the MPS

Mr. Wang Qiang, director general of the Bureau of Traffic Management of the MPS

Chairperson:

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

Date:

Aug. 27, 2024 

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Qi Yanjun, executive vice minister of public security; Mr. Qiu Baoli, director general of the Bureau of Public Security Management of the Ministry of Public Security (MPS); Mr. Li Jiantao, director general of the Bureau of Environmental Resources, Food and Drug Crime Investigation of the MPS and director general of the Bureau of Intellectual Property Crime Investigation of the MPS; and Mr. Wang Qiang, director general of the Bureau of Traffic Management of the MPS, to brief you on relevant developments and to take your questions. 

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

Qi Yanjun:

Thank you, Ms. Shou. Hello, friends from the media.

Since the 20th National Congress of the Communist Party of China (CPC), public security organs nationwide have fully implemented the guiding principles of the congress and the second and third plenary sessions of the 20th CPC Central Committee, thoroughly studied and implemented the important remarks of General Secretary Xi Jinping on high-quality development, and carried out the arrangements of the National Public Security Work Conference. We have further innovated our philosophies, optimized measures and improved methodologies, with the aim of creating sound political, social, service and legal environments that are conducive for high-quality development. We have made new contributions to sustaining rapid economic growth and long-term social stability, which are two remarkable achievements. 

We have made every effort to strengthen political security, fostering a secure and stable political environment for high-quality development. We have fully applied a holistic approach to national security, prioritizing political security, closely guarding against and cracking down on infiltration, subversive, disruptive and destructive activities by internal and external hostile forces, to firmly safeguard the security of China's state power, systems and ideology. We have resolutely and initiatively cracked down on terrorism and separatism and continuously conducted special actions to combat violence and terrorism, firmly preventing violent and terrorist cases and incidents. We have thoroughly implemented the Global Security Initiative, deepened international law enforcement cooperation to maintain security, and made more partners in law enforcement and security cooperation. We have firmly safeguarded the legitimate rights and interests of Chinese citizens and legal persons overseas. 

We have made every effort to maintain the long-term stability and security of society, fostering a peaceful and harmonious social environment for high-quality development. We have upheld a people-centric development philosophy, carried forward and evolved the Fengqiao Experience (an approach to resolve social disputes at the community level) in the new era, and facilitated the improvement of public security governance mechanisms and social governance systems, advancing the Peaceful China Initiative to a higher level. In 2023, public security organs nationwide filed 4.8% fewer criminal cases than in 2022, whereas the number of public security cases being investigated and handled was on par with that in 2022. From January to July this year, the number of criminal cases filed dropped 30.1% year on year, achieving a 14-month decline streak; the number of telecommunications and online fraud cases filed decreased 23.8% year on year, falling for 11 consecutive months; and 99.94% of current homicide cases were solved, the highest rate in history. People's sense of security has constantly improved. Foreigners staying in China often praise it as one of the safest countries in the world. In 2023, the national public security index maintained a high standard, reaching 98.2% and remaining above 98% for four years in a row. 

We have made every effort to enhance coordinated reforms, fostering an excellent and efficient service environment for high-quality development. We have fully and faithfully applied the new development philosophy, further deepening the reform of public security related administrative services to continue unleashing the internal driving forces and creativity of society. Since 2019, we have fulfilled the duties and missions of public security authorities and rolled out a series of new reform measures to benefit both individuals and enterprises. We have advanced one-stop government services by improving the list-based management mechanism for relevant major tasks. We have diversified the methods for accessing administrative services, optimized related procedures, reduced the materials required, and minimized costs. In terms of benefiting individuals and enterprises, we have issued more than 240 reform measures to facilitate socioeconomic development and improve the business environment. In terms of public security and household administration, we have continuously deepened efforts in providing frequently used household administrative services across provinces and providing ID card related services outside home jurisdiction. More than 4.15 million household registration transfers have been handled across provinces, and 116 million ID cards have been renewed or reissued outside home jurisdiction. In terms of traffic management, we have rolled out 10 sets of new reform measures, benefiting more than 800 million people and cutting more than 70 billion yuan ($9.86 billion) in administrative costs for the public. In terms of integrated urban-rural development, the process of granting permanent urban residency to people moving out of rural areas has been advanced in an orderly manner. Since 2014, a total of 150 million of these people have been granted permanent urban residency in a steady and orderly manner. Nationwide, the registered urban population proportion reached 48.3% in 2023, up from 35.9% in 2014.

We have made every effort to improve public security through rule of law, fostering a fair and just legal environment for high-quality development. We have continuously deepened efforts in standardizing law enforcement, improving rule of law in public security work and the credibility of law enforcement, to let the public feel a sense of fairness and justice in our handling of each case and incident. We have upheld and fulfilled our commitments to unswervingly consolidating and developing the public sector and unswervingly encouraging, supporting and guiding the development of the non-public sector. Based on the principle of equitable and law-based protection, we have investigated and handled 396,000 criminal cases involving intellectual property infringement and disruption of market order since 2019. We have insisted on boosting development and ensuring effective governance through good legislation, facilitating the formulation and revision of more than 50 laws and regulations related to public security. We have insisted on ensuring fairness and justice by standardizing law enforcement, setting up 3,055 management centers for law enforcement and case handling at city and county levels, which have become vivid examples showcasing the law-based governance of China. We have thoroughly promoted strict, standardized, impartial and civilized law enforcement, improved related methodologies, and standardized the language and conduct used in the process, achieving a better balance between law, reason and sense, and ensuring the timeliness, intensity and effect of law enforcement. 

On the new journey, public security authorities nationwide will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee, to gain a deep understanding of the decisive significance of establishing Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and establishing the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We will be more conscious of the need to maintain political integrity, think in big-picture terms, follow the leadership core, and maintain alignment with the central Party leadership. We will remain confident in the path, theory, system and culture of socialism with Chinese characteristics. We will uphold Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and uphold the Central Committee's authority and its centralized, unified leadership. We will also further deepen all-round reform of the public security system and pursue modernization with our work, increasing our contribution to building a great country and advancing the rejuvenation of the Chinese nation on all fronts through Chinese modernization.

That is all for my introduction. Next, my colleagues and I are ready to take your questions. 

Thank you, Mr. Qi, for your introduction. Let's move on to the question-and-answer session. Please identify the media outlet you represent before raising your question. The floor is now open for questions.

Hongxing News:

Today's China is a country of people who are on the move. We've noted that the third plenary session of the 20th Party Central Committee outlined plans for promoting integrated urban-rural development. What steps will public security agencies take to support this integration, especially in reforming the household registration system and granting permanent urban residency to eligible rural migrants? Thank you.

Qi Yanjun:

Thank you for your question. I would like to invite Mr. Qiu to answer it.

Qiu Baoli:

I'll answer this question. Household registration system reform is a critical issue attracting significant public attention. The third plenary session of the 20th Party Central Committee proposed implementing systems allowing people to obtain household registration and access basic public services where they permanently reside. We will push to see that eligible rural-to-urban migrants enjoy the same rights as registered local residents regarding social insurance, housing support, and access to compulsory education for their children living with them. We'll also accelerate the process of granting them permanent urban residency and explore establishing a unified national population management system. These efforts will guide further household registration reform. The MPS will work with relevant departments to conduct in-depth research and take effective measures to grant permanent urban residency to eligible rural-to-urban migrants in an orderly manner, promoting integrated urban-rural development.

First, we're committed to introducing policies that benefit people. We have accelerated the implementation of the household registration system at the place of habitual residence. Through the joint efforts of various regions and departments, most cities nationwide have lifted all restrictions on household registration. Next, we'll guide local governments to implement category-based and region-specific policies, adhering to basic conditions of legal and stable employment or residence, including leasing. We'll relax restrictions on household registration in cities with 3 to 5 million permanent residents and improve points-based household registration policies for megacities with more than 5 million permanent urban residents. These measures aim to better facilitate the urbanization of the rural migrant population.

Second, we have committed to offering convenient services to the public and ensuring easy access to commonly used government services. In recent years, public security agencies have made significant progress in advancing the handling of common government services on an interprovincial basis. As of the end of July this year, 2.4 million household certification services were handled interprovincially. Meanwhile, over 1.2 million resident ID cards were issued for first-time applicants interprovincially. More than 42.32 million resident ID cards were replaced and reissued across provinces and 73.62 million across prefectures. Building on the fully implementation of nationwide access to household registration transfer, resident ID cards and temporary resident ID cards, we will guide local governments to actively respond to new public expectations and demands. We will steadily advance the online completion of all procedures for common household administration services, such as reissuing, replacing and obtaining resident ID cards, so that tasks can be done without leaving home.

At the same time, we remain committed to carrying out reforms that benefit the public, actively exploring the establishment of a national unified household registration management system. In recent years, valuable practical experience has been gained in deepening the reform of the household registration system, which has laid a solid foundation for establishing a unified national household registration management system. Next, we will continue to deepen the reform of the household registration system and accelerate the integration of the function of resident ID cards and residence permits. Taking resident ID numbers as the unique identifiers, we will accelerate the interdepartmental connection and sharing of population information resources in accordance with the law and aggregate information on employment and education so as to better promote one-stop government services. We will advance legislation in the field of household registration management so as to provide a legal guarantee for a national unified household registration management system. Thank you.

China Police Daily:

In recent years, the MPS has continued to promote the reform of administrative management services and introduced a series of measures. Notably, in August 2023, the MPS issued 26 measures to support high-quality economic and social development. Could you please update us on the overall progress of these initiatives? Thank you.

Qi Yanjun:

Thank you for the question. The reform of administrative management services is an important vehicle for public security agencies to advance high-quality development. Since the 20th CPC National Congress, the MPS has launched a series of reform measures to support high-quality development, including the 26 measures you just mentioned. The implementation of these reform measures has achieved remarkable progress. Allow me to briefly outline this progress in three key areas.

In terms of serving and ensuring the implementation of major national strategies, we have continued to increase institutional support. We have further refined the household registration transfer policy and continued facilitating urbanization of the rural migrant population. At present, household registration restrictions have been comprehensively relaxed or lifted in all cities, except for a few megacities in the eastern region and some provincial capitals in the central and western regions. Focusing on serving coordinated regional development, we have studied and formulated a series of measures, such as certain measures for supporting accelerated growth in the central region. We have continued to enhance law enforcement coordination in the Beijing-Tianjin-Hebei region and the Yangtze River Delta, serving coordinated regional development through collaboration among regional police forces. We have advanced the institutional opening up of immigration management and enhanced the convenience of immigration and entry-exit administration. From January to July 2024, the number of foreign tourists visiting China for sightseeing (leisure) reached 5.722 million, with 3.803 million for meetings (business) and 1.723 million for visits to relatives and friends, rising by 403%, 81.5% and 107.4% year-on-year respectively.

In terms of serving the establishment of a modern industrial system, we have continued to unleash the vitality of innovation, entrepreneurship and creativity. We have highlighted service functions, established regular police-enterprise contact mechanisms, and innovated online and offline service models. We have developed several service brands to assist and protect enterprises, including the "11087 Qinqing in Zhejiang" by Zhejiang public security authorities and the "Qinqing in Fujian" brand by Fujian public security authorities. We have further facilitated the passage of vehicles for logistics and freight transportation. More than 270 cities above the prefecture level have lifted traffic restrictions on new energy light trucks, as well as smaller box trucks and enclosed trucks, promoting urban truck routes and serving nearly 30,000 enterprises. We have further regulated law enforcement involving enterprises and strictly regulated coercive measures that concern the personal rights of citizens as well as the sealing, sequestering and freezing of assets. We will take timely and effective actions against prominent law enforcement problems and protect the property rights and lawful rights and interests of business operators in accordance with the law.

In terms of efficient convenience for the people and benefits for enterprises, we have innovated and optimized public security administration services. We will continue to promote more public security administration services to be handled "online and on mobile devices; in one visit and in an integrated manner; nearby and in different places." As I just introduced, people can apply for identity cards, electronic driver's licenses and vehicle licenses outside of their home jurisdiction. Currently, residence registration transfer, identity cards, driver's licenses and passports can all be handled throughout the country. Comprehensive service windows for public security administration services have been set up in 24,000 police stations, where more than 100 government service items can be handled. In addition, more than 20,000 self-service devices have been installed in police stations across the country to provide the public with 24/7 services. Centering on the entire process and all links of people's travel, including license plate and certificate application, road traffic and traffic accident handling, we have launched several batches of reform measures, such as simplifying vehicle registration and transactions, optimizing the management of bus lanes in cities, and promoting online video quick handling of minor traffic accidents. So far, 250 million electronic driver's licenses have been issued. Electronic vehicle licenses have been piloted in 60 cities including Beijing, with more than 22 million vehicle owners issued with electronic vehicle licenses. These efforts have provided more convenient and efficient public security traffic management administration services for the public.

There is no end to the development of services. Next, the public security authorities will further innovate their concepts, improve their methods and optimize their measures to continuously enhance the efficiency of service management and more proactively lead high-quality development. That is all from me.

Dutch Public Broadcaster NOS:

Yesterday, the period of soliciting opinions closed for the newly proposed national network identification and authentication management, also referred to as "Wanghao" or "Wangzheng." These proposed measures caused backlash in China, including among leading intellectuals. How will your ministry guarantee that a transgression on one internet platform will not cause an individual to be excluded from all other necessary internet services needed in modern day life?

Qi Yanjun:

Thank you to the foreign journalist friend for your question. Recently, during the process of soliciting opinions on cyberspace IDs and certificates, many good opinions and suggestions have been put forward by all sectors of society, and we have paid interest to all of them. Regarding this issue, I would like to invite Mr. Qiu to answer.

Qiu Baoli:

I'll answer this question. Thank you for your interest in this issue.

As this journalist mentioned, on July 26, the MPS and the Cyberspace Administration of China (CAC) jointly released the draft measures for the administration of cyberspace IDs and solicited opinions, attracting widespread attention. On Aug. 25, the soliciting period ended, and we are now meticulously sorting through the opinions from all sides and fully incorporating everyone's suggestions. Regarding the issues of cyberspace IDs and certificates that everyone is interested in, the media has provided detailed interpretations of related issues last week. I recommend the journalist friend look into them. The explanations are very detailed and comprehensive, and can answer your questions.

However, it should be noted that after the implementation of the national cyberspace ID service, users will have an additional safe and convenient option. Original network identity authentication methods can still be used, and users can still access the internet normally without using cyberspace IDs or certificates. Thank you.

Hong Kong Bauhinia Magazine:

Currently, the topics of unmanned and autonomous driving are very popular. We also understand that the MPS has cooperated with the Ministry of Transport and other departments on numerous areas. What other considerations have the MPS made in promoting the development of unmanned and autonomous driving? Thank you.

Qi Yanjun:

Thank you for your question. I would like to invite Mr. Wang to answer.

Wang Qiang:

I'll answer this question. This is also an issue of great concern to all sectors of society. Intelligent connected vehicles (ICVs), commonly known as unmanned or autonomous vehicles, are currently a major high ground in the new round of scientific and technological revolution worldwide. Currently, through continuous technological accumulation and testing, China's ICV industry is advancing steadily. In this process, the public security traffic management departments and public security organs have fully leveraged their functions and protected the legitimate rights and interests of traffic participants in accordance with the law, continuously adapted to the development of autonomous driving technology, and actively cooperated with competent authorities to carry out management and support work. So far, a total of 16,000 license plates for testing autonomous vehicles have been issued, and 32,000 kilometers of public roads have been opened for testing, which has effectively supported the verification and updating of autonomous driving technology.

On the one hand, we are actively cooperating with competent authorities to promote road trials. Our country is currently forming a comprehensive management system for autonomous vehicles covering road testing, demonstration and application, market access and on-road operation. In terms of road testing and demonstration and application, in July 2021, the MPS jointly issued a document with the Ministry of Industry and Information Technology (MIIT) and the MOT, clearly stipulating the requirements for entities, drivers and vehicles involved in the technical testing and demonstration and application of autonomous vehicles on public roads, as well as the management of road testing and demonstration and application, and the handling of traffic violations and accidents. In terms of market access pilot program and on-road operation, in November 2023, the MPS jointly issued regulations with the MIIT and other departments, conducting a pilot program of market access for autonomous vehicle products that have undergone technical testing and are ready for mass production. Autonomous vehicles included in the MIIT's announcement after the access pilot program can purchase insurance, get registered and conduct pilot tests for on-road operation within designated areas. In addition, in the pilot application of the vehicle-road-cloud collaborative system, the MPS jointly issued a notice with the MIIT and other departments, refining and improving relevant management measures for road traffic safety management and cybersecurity.

On the other hand, we are also actively promoting the revision of the Road Traffic Safety Law. Detailed regulations have been established regarding road testing of self-driving cars, their on-road passage, traffic violations, accident handling and the pursuit of related responsibilities. Currently, the revision of the Road Traffic Safety Law has been included in the State Council's 2024 annual legislative agenda and the first category of the legislative plan of the Standing Committee of the 14th National People's Congress.

Additionally, we are proactively advancing the formulation and revision of relevant technical standards. In the areas of registration management, identity authentication, and safety and road traffic management for autonomous driving, we are actively promoting the development of eight national standards, including technical requirements for driving safety tests for intelligent and connected vehicles, as well as 10 public safety industry standards, such as elements and setup requirements for driving safety tests on public roads of intelligent and connected vehicles. We are also working closely with the MIIT and other departments to promote the establishment of a unified national technical standard system for autonomous vehicles.

Next, the MPS will balance development and security, actively cooperating with the MIIT, the MOT and other relevant authorities. We will promote the advancement of the autonomous driving industry and the transformation and upgrading of the automotive industry in a legal, secure, steady and orderly manner, serving the high-quality economic development of our country. Thank you.

CNR News:

We are aware that public security authorities play a crucial role in safeguarding ecological safety. To better protect our lucid waters and lush mountains, what specific measures will the public security authorities take in the future to combat eco-environmental crimes? What progress has been made? Thank you.

Qi Yanjun:

Environmental and ecological protection is indeed a matter of high concern for all sectors of society. I would like to invite Mr. Li to answer your questions.

Li Jiantao:

Thank you for your interest. In recent years, the public security authorities have resolutely implemented the spirit of General Secretary Xi Jinping's important instructions on eco-environmental protection, always adhering to the strictest systems and most rigorous rule of law to protect the ecological environment. In conjunction with relevant departments, they have effectively cracked down on environmental and resource crimes in accordance with the law. From January to July of this year, a total of over 30,000 criminal cases involving the environment and resources were filed and investigated nationwide. Our work primarily focuses on the following three key areas:

To prevent and control pollution, the public security authorities have lawfully cracked down on environmental pollution crimes. In collaboration with the Ministry of Ecology and Environment and other relevant departments, we have continuously carried out special operations to combat environmental crimes related to hazardous waste and to rectify issues of falsification by third-party environmental protection service institutions. A total of over 1,600 criminal cases involving environmental pollution have been investigated and dealt with. For instance, based on clues from the "Oct. 25" environmental pollution case in Hechi, Guangxi, the MPS organized public security authorities in Inner Mongolia, Jiangxi and other regions to conduct thorough investigations, dismantling a gang involved in environmental pollution crimes that spanned seven provinces and regions, and lawfully disposing of thousands of metric tons of electronic waste.

In the protection of biodiversity and natural resources, we have lawfully cracked down on crimes that damage environmental resources. We have closely monitored criminal activities such as endangering precious and near-extinct wildlife, and illegal hunting and fishing, continuously increasing our crackdown efforts. From January to July of this year, we filed and investigated over 16,000 criminal cases in these areas. The MPS organized public security authorities in 21 provinces and regions to carry out a"May 22" special operation for concentrated crackdown on illegal hunting, filing and investigating over 800 criminal cases, and delivering a heavy blow to the arrogance of the criminals. In collaboration with relevant departments, we have launched special operations such as the Chunfeng (spring breeze) action, lawfully cracking down on crimes such as damaging ancient trees and famous wood species, endangering national key protected plants, and illegal sand and mineral mining, filing and investigating over 8,800 criminal cases, and effectively protecting the safety of forests and mineral resources.

In ensuring national food security, we have lawfully cracked down on crimes that damage arable land. We have implemented the strictest arable land protection system with tough measures, actively participated in joint departmental enforcement, and lawfully cracked down on related crimes. From January to July of this year, public security authorities nationwide filed and investigated 3,600 criminal cases of destruction of arable land and other types of agricultural land. The MPS organized public security authorities in Inner Mongolia, Liaoning, Jilin and Heilongjiang to carry out regional campaigns against criminal damage of black soil. The number of such cases solved this year has doubled compared to the same period last year, effectively protecting black soil, also known as the "giant panda in cultivated land." At the same time, we have continued to crack down on the manufacture and sale of counterfeit and substandard seeds, chemical fertilizers and pesticides and other agricultural input related crimes, filing and investigating over 160 criminal cases, and effectively ensuring agricultural production.

Next, the public security authorities will deeply practice the concept that lucid waters and lush mountains are invaluable assets, accelerate the establishment of an ecological policing mechanism led by public security departments and involving joint operations with relevant departments, conduct end-to-end crackdowns on illegal and criminal activities, comprehensively protect lucid waters and lush mountains, as well as support green development throughout the entire process, facilitating the Beautiful China Initiative by ensuring security. Thank you.

Guangming Daily:

With the continuous improvement of living standards in rural areas, the demand for vehicles is also increasing. What measures have the MPS taken to improve transport management and better meet the needs of rural residents for vehicle use and convenient administrative services, and what progress has been made? Thank you.

Qi Yanjun:

Thank you. I would like to invite Mr. Wang to answer the questions.

Wang Qiang:

Thank you for your interest. With the comprehensive advancement of rural revitalization in recent years, the number of vehicles and drivers in rural areas has been growing rapidly at a rate in excess of 10 million a year. Currently, the number of motor vehicles and drivers in rural areas of China accounts for more than 50% of the national total. In order to better support the rural revitalization strategy, the MPS has instructed local public security authorities to further refine service measures, comprehensively extend traffic management services to rural areas, and better meet the needs of rural residents for convenient services.

First, we have further delegated traffic management duties to county-level authorities. Duties such as compact car registration and driver's license tests have been delegated to traffic management departments of county-level public security authorities at a faster rate. By the end of this July, 90% of counties and county-level cities nationwide have carried out compact car registration and 55% of them have carried out all-subject driver's license tests for compact cars. These efforts have significantly relieved the burden on rural residents who would have travelled back and forth to access these services. Meanwhile, we have further expanded the scope of duty for county-level vehicle administration offices. We have piloted registration services for medium-sized passenger cars and above in 174 county-level vehicle administration offices, providing residents with easy access to such service near their homes. At the same time, more efforts have been made to make county-level vehicle administration offices more standardized and better structured. We have improved facilities at county-level service centers, optimizing their service environment, implementing measures such as requiring no forms and copies at service windows and continuing to increase their service quality. 

Considering the frequent usage of motorbikes in rural areas, we have further improved the management of the driver's license test for motorbikes. We have upgraded the question bank for the motorbike license test and increased scenario-based questions with pictures, making the test more practical and targeted. We have also put forward measures like test appointments and carrying out tests in rural areas to help people living in rural areas be able to take the test and receive driving licenses more conveniently near their homes. 

In addition, considering the comparatively large number of traffic security risks in rural areas, we have focused on increasing the awareness and capabilities for people living in rural areas to proactively prevent such risks. Publicity and education are essential to further spread traffic security knowledge and enhance traffic civility throughout rural areas. Therefore, in recent years, we have taken further actions, such as publicity and education, to promote public awareness of road traffic security, compiling a brochure series of traffic security knowledge in rural areas. We have also worked with publicity departments, agriculture and rural affairs authorities, as well as other government organs, to launch the Beautiful Countryside Circuit Tour. By means of traffic security promotion wagons, experience camps, lectures and rural broadcasts, we have disseminated legal knowledge and protection tips involving traffic security among thousands of households throughout rural areas. By doing so, we have promoted the spread of law-based governance and traffic security knowledge in rural areas through multiple channels, influencing 430 million local people and strengthening public support for traffic civility. Thank you.

Beijing Youth Daily:

We have noted that the MPS has launched summer crackdown campaigns to maintain law and order for three consecutive years. What are the arrangements for this year's summer campaign? What is the progress so far? Thank you.

Qi Yanjun:

I will answer these questions. In June 2022, taking regular patterns and characteristics of cases often found in summer into consideration, the MPS Party Committee deployed all public security organs across the country to carry out a "100-day campaign" to crack down on illegal and criminal activities while maintaining law and order. This campaign successfully safeguarded social security and stability during the summer, winning public appreciation and becoming a highlight of the public security organs' contribution to maintaining social stability and serving the people. As the reporter just mentioned, this is the third year for us to carry out the "summer campaign." Our aim is to safeguard the people's safety through efforts in maintaining law and order during the summer, so as to ensure high-quality development with a high level of security.

Since the start of this year's "summer campaign," all public security organs nationwide have comprehensively implemented combat, prevention, management, control and construction measures based on the integrated mechanism of "intelligence-command-action." So far, we have launched two rounds of centralized and unified inspections and publicizing activities during summer nights, addressing 491 cross-regional cases with long criminal chains and huge impacts, such as those involving pornography, gambling, drugs, food, medicine, the environment, telecom and online fraud as well as cybercrime. Through these efforts, the "summer campaign" has made clear progress, with many prominent criminal behaviors cracked down on in accordance with the law, emergency cases and accidents appropriately handled as well as risks and hidden dangers effectively eliminated. During the campaign, reported crimes and public security offenses received by the 110 hotline fell by 18.1% and 10.9%, respectively. During this year's "summer campaign," the MPS has used information technology to directly extract all data, easing the burden at the primary level and ensuring objectivity and truthfulness. 

Next, the MPS will direct local public security organs to work according to their own summertime social security conditions, take stronger and more effective measures to crack down hard on all kinds of prominent illegal and criminal behaviors as well as make every effort to safeguard the people's safety and overall social stability. Continuous efforts will be made to make sure the "summer campaign" meets set targets and delivers concrete results. Thank you.

Tide News:

The public is quite familiar with police stations. Whatever trouble occurs, people turn to police stations for help. Police stations are primary-level public security organs and a window that has more contact with the people. During the process of enhancing the urban and rural community governance system, how will you better leverage the role of police stations in serving the public? Thank you.

Qi Yanjun:

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

Qiu Baoli:

This is indeed a pertinent question and I will answer it. Police stations are primary-level public security organs. Their police officers maintain the closest contact with residents and are most familiar with communities. In recent years, all urban and rural police stations have actively performed their duties in improving community governance, further promoting a community policing strategy in urban and rural areas as well as fully integrating with community self-governance and grid-based management. Relying on Party organizations at the community level, we have mobilized more than 23 million people in public participation in crime prevention and control, cultivated over 20,000 social organizations that help safeguard social security and carried out various safety activities, significantly promoting social harmony and stability at the grassroot level. Particularly, public security organs at ministerial and provincial levels have nominated 2,082 "Fengqiao-style police stations," applying and further developing the Fengqiao model for promoting community-level governance in the new era. Social disputes at the community level are numerous and wide ranging, accounting for more than 50% of reported cases received and handled by public security organs. Considering this, we have guided police stations to establish and improve mechanisms that align courts with police stations as well as station mediators and lawyers in police stations. By doing so, we have resolved social disputes through multiple channels and promoted comprehensive prevention and treatment of risks. As a result, more than six million cases of social disputes have been addressed annually, and more than 12 million requests for assistance from the public have been handled.

Going forward, the MPS will provide guidance for the public security organs nationwide to implement the guiding principles of the third plenary session of the 20th CPC Central Committee, and carry out the three-year work plan for police stations nationwide to enhance their work. We will promote further collaboration between the police and the public, and improve the primary-level governance system in rural and urban areas. We will implement the "Police Officers Visit Households" campaign, and organize the "Five Prevention" community outreach campaign, which involves engaging with local communities to promote awareness and the prevention of theft, fraud, drug abuse, conflicts and disputes, and public security incidents. By doing so, we are able to better respond to public concerns, and reduce crime and cases in communities. In this way, the police and the public will work together to create a safe and secure environment. We will dedicate ourselves to building "Fengqiao-style police stations," adhering to the mass line guided by exemplary models. We will promote effective Fengqiao-style practices to proactively address conflicts and risks, provide services for residents in communities, and consolidate the foundation of primary-level governance. To achieve the full coverage of "one police officer responsible for one village (grid)," we will equip villages (or communities) with auxiliary police officers or police assistants, and develop it with grid-based management and public services in synergy to jointly improve primary-level governance. We will boost public participation in activities such as patrols, encouraging neighbors to look out for each other, offering help for those in need, and providing educational programs. By doing so, we aim to foster a community of social governance based on collaboration, participation and shared benefits. We will actively participate in primary-level governance, and deepen the reform of establishing one comprehensive command room and two teams of police officers working in communities and as law enforcers, advancing the construction of the fundamental management center, and improving the collaboration mechanism between police stations, specialized police units and primary-level organizations. By doing so, we will ensure that police stations perform their duties in a more standardized, regulated and professional manner. Moreover, we will encourage directors of police stations to be part of the leading groups of towns, townships and communities, and encourage community police officers to be part of the leading groups of villages and communities, so as to enable them to conduct proactive and preventive policing in communities. Thank you. 

China News Service:

The protection of intellectual property (IP) is crucial for high-quality development, and strictly protecting IP will encourage greater enthusiasm for scientific and technological innovation. What efforts have the public security organs made to crack down on infringements, counterfeiting and other illegal activities infringing on IP rights? What achievements have been made in this regard? Thank you.

Qi Yanjun:

Thank you for your questions. Mr. Li Jiantao, as the chairperson said previously, is director general of the Bureau of Environmental, Resource, Food and Drug Crime Investigation. He is also director general of the Bureau of Intellectual Property Crime Investigation. As such, I'd like to invite Mr. Li to answer this question. 

Li Jiantao:

Thank you for your concern. In recent years, the public security organs nationwide have prioritized the protection of IP rights. We have organized the "Kunlun" series of special campaigns for six consecutive years to crack down on all kinds of crimes infringing on IP rights in accordance with the law, providing sound legal support for fostering new quality productive forces and promoting high-quality development. In June this year, the Bureau of Environmental, Resource, Food and Drug Crime Investigation of the MPS was given an additional title of the Bureau of Intellectual Property Crime Investigation in a bid to encourage the public security organs across the country to strengthen their professional teams, and provide more guidance for the endeavors to crack down on IP rights infringements. From January to July this year, public security organs across China have filed and investigated 21,000 cases of IP infringements and counterfeits. To be more specific, we have made efforts in the following aspects:

First, we have been firmly committed to the principle of strict measures in accordance with law. We have launched intensive crackdowns on violations of IP rights which the public are concerned about, including the production and sale of counterfeit goods, counterfeiting and piracy, so as to maintain a high level of deterrence against such crimes. Moreover, in order to meet the needs of sci-tech innovation and their industrial development, we have stepped up our efforts to combat infringements of commercial secrets and patent counterfeiting in the fields of new technologies, new industries and new business formats. Notably, we have intensified our efforts to tighten regulations on the filing of criminal cases related to infringements of commercial secrets, providing effective solutions to the pressing difficulties faced by some enterprises in reporting and collecting evidence for such types of cases. 

As Mr. Qi said, we have upheld and fulfilled the commitments to the public and non-public sectors, and made optimizing the business environment a top priority, protecting the legitimate rights and interests of all businesses in a law-based and equitable manner. As such, we are able to help build a market-oriented, law-based and international business environment. We have been committed to proactive and preventive policing. Given the problem of weak self-protection awareness among some enterprises, we have promoted some experiences and practices, such as the practices of the Zhejiang police which have specifically designated police officers to deal with IP-related policing matters and the practices of the Changsha Public Security Bureau in Hunan province which set up work stations in enterprises to protect their IP. By doing so, we aim to intervene, detect and deal with infringement risks as early as possible, so as to help enterprises improve their self-protection capabilities. 

IP protection is intertwined with a wide range of fields. As a result, we have attached great importance to inter-departmental coordination, so as to establish a collaborative work model that leverages professional expertise, mobilizes entire police forces, and fosters inter-departmental collaboration, and public participation. We have worked with departments responsible for IP, market regulation and copyright to enhance the connection between administrative law enforcement and criminal justice, and make joint efforts to launch crackdown campaigns. We have promoted the advanced experiences of Beijing's collaborative law enforcement mechanism, which combines the law enforcement forces of the public security organs and administrative departments, to ensure information sharing, joint analysis and decision-making, as well as mutual transfer of cases, so as to establish a collaborative governance mechanism.

In order to better fulfill our responsibilities for ensuring criminal protection of IP rights, we have been working to enhance our capabilities. This includes strengthening our foundational work in law enforcement systems, intelligence and investigative techniques. Therefore, a work system which is well-equipped to address practical matters has taken shape. Since last year, we have been actively promoting the practices of the Fujian Provincial Department of Public Security in setting up doctoral work stations to develop investigative techniques for IP protection. This has been helpful in strengthening professional and scientific research, and fostering specialized talents and top-notch investigation teams in different fields, which will improve our capabilities in overcoming difficulties. Thank you.

Shou Xiaoli:

There are still many questions, but we will take two final questions due to time constraints.

Haibao News:

In recent years, the rapid development of social media and new media has made life more convenient but also accelerated the spread of rumors. These online rumors mislead the public, damage the reputations of individuals and businesses, and disrupt social order. How are public security departments combating this issue? Thank you.

Qi Yanjun:

Mr. Wang will answer this question.

Wang Qiang:

Thank you, I'll take this question. As the journalist suggests, the "attention economy" has significantly increased the scope, speed, frequency and impact of online rumors in recent years, along with their social harm. In response, the MPS has prioritized this issue, directing public security departments nationwide to conduct special operations to combat and rectify online rumors. I'd like to take this opportunity to share our progress in these efforts this year:

First, we have taken strong action against self-media operators who create rumors to attract followers and make illegal profits. So far this year, public security agencies have investigated over 22,000 cases related to online rumors, dealt with over 25,000 individuals involved in spreading rumors, shut down more than 160,000 illegal accounts, and removed over 1.32 million pieces of false information from the internet.

Second, we've focused on uncovering and cracking down on organized online activities. These include "internet water armies" and hordes of fake online accounts companies and celebrities use to inflate their social media followings or criticize rivals. We've also targeted multi-channel networks that manipulate and spread rumors for profit. We have investigated 623 cases and arrested 3,397 individuals involved in such activities.

Third, we have strongly emphasized debunking rumors through public awareness campaigns. We use various methods, including police briefings, press conferences, media reports, publishing typical cases, and hosting publicity events to raise public awareness. So far, we have made over 3,600 typical cases public.

Finally, we've strengthened comprehensive governance measures for website platforms. Using major rumor cases as starting points, we've identified and rectified vulnerabilities on websites and platforms. We've taken action against 1,036 platforms and conducted individual interviews with key platforms for further rectification to enhance governance and regulations. Thank you.

China Central Television (CCTV):

According to the resolution made by the third plenary session of the 20th CPC Central Committee, China will deepen international law enforcement cooperation in the realm of security, so as to protect the lawful rights and interests of Chinese citizens and legal entities overseas. How do public security authorities engage in this cooperation and contribute to global security governance? Thank you.

Qi Yanjun:

Thank you for your question. In recent years, the public security authorities have actively implemented the Global Security Initiative, strengthening cooperation with law enforcement agencies worldwide. We've established cooperation mechanisms with foreign law enforcement bodies and conducted joint operations to combat transnational crime. These efforts protect China's overseas interests and firmly safeguard our national sovereignty, security, and development interests. At the same time, we've also proposed new concepts and approaches for security governance to the international community. We're sharing our achievements and experiences in building the rule of law and advancing the Peaceful China Initiative, while actively participating in global public security governance. I would also like to highlight that from Sept. 8 to 10, the Conference of Global Public Security Cooperation Forum will be held in Lianyungang. The forum has garnered significant global attention, with many high-level participants from numerous countries, demonstrating its wide-reaching influence. Our continuous efforts to strengthen international law enforcement cooperation are evident in initiatives like our collaboration with the Myanmar police to combat telecom fraud in northern Myanmar. Through effective cooperation, Myanmar authorities have transferred 10 major telecom fraud ringleaders, including Bai Suocheng, to China. To date, more than 50,000 suspects involved in telecom fraud in northern Myanmar have been arrested. Additionally, we have launched joint operations to combat crimes in the "Golden Triangle" region, working closely with law enforcement agencies in Laos, Cambodia, Thailand and other countries to crack down on transnational crimes that affect Chinese interests.

Moving forward, public security authorities will focus on these four areas:

First, we will strengthen cooperation. We'll work to establish closer, more practical bilateral law enforcement partnerships with foreign counterparts, signing cooperation agreements, setting up liaison hotlines, and establishing regular meeting mechanisms. These efforts will lay a solid foundation for combating transnational crime and protecting China's legitimate overseas interests. We'll also constructively participate in multilateral law enforcement organizations such as the United Nations, Interpol, the Shanghai Cooperation Organization, and regional law enforcement bodies, contributing China's wisdom and solutions to global public security governance.

Second, we will intensify crackdowns on transnational crimes that are particularly harmful to the public, such as online gambling, telecom fraud, and other severe offenses like kidnapping, murder and gang crimes involving Chinese citizens abroad. We'll strengthen practical cooperation with foreign law enforcement agencies in investigating cases, exchanging evidence, and apprehending and repatriating suspects. By leveraging Interpol's resources, we will maintain a high-pressure stance against all forms of transnational crime affecting Chinese interests.

Third, we will enhance protection. We will coordinate closely with foreign law enforcement agencies to intensify the protection of Chinese institutions, personnel, and interests abroad. In European countries with a high concentration of Chinese tourists, we'll continue to conduct joint patrols with local law enforcement agencies. Additionally, we will collaborate with relevant departments to strengthen security training and risk assessments for Chinese enterprises overseas, improving their risk awareness and response capabilities.

Additionally, we actively participate in U.N. peacekeeping operations. Since the 19th CPC National Congress, the MPS has dispatched peacemaking police officers to seven U.N. mission areas and the U.N. headquarters. Chinese peacekeeping police have faithfully fulfilled their duties, strictly adhering to U.N. regulations and local laws. They've significantly contributed to peace and stability in mission areas, earning widespread praise. Thank you.

Shou Xiaoli:

Thank you, Mr. Qi and other speakers. Thank you to the friends from the media for attending this press conference. Today's conference is now concluded. Goodbye.

Qi Yanjun:

Thanks to the friends from the media for your interest in and support for our work. Thank you.

Translated and edited by Liu Sitong, Wang Wei, Xu Kailin, Li Huiru, Wang Ziteng, Huang Shan, Yang Chuanli, Li Xiao, Zhou Jing, Gong Yingchun, Yuan Fang, Guo Yiming, Ma Yujia, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers: 

Mr. Ni Hong, minister of housing and urban-rural development

Mr. Dong Jianguo, vice minister of housing and urban-rural development

Mr. Qin Haixiang, vice minister of housing and urban-rural development

Chairperson:

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

Date:

Aug. 23, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Ni Hong, minister of housing and urban-rural development, to brief you on relevant developments and to take your questions. Also present today are Mr. Dong Jianguo and Mr. Qin Haixiang, both vice ministers of housing and urban-rural development.

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

Ni Hong:

Ladies and gentlemen, I'm very glad to meet you here and brief you on the high-quality development of housing and urban-rural development, and to answer your questions.

First of all, on behalf of the Ministry of Housing and Urban-Rural Development (MHURD), I would like to extend my heartfelt gratitude for your long-term interest in and support for the housing and urban-rural development.

High-quality development is a primary task in building China into a modern socialist country in all respects and a top priority in the new era. Since the 18th National Congress of the Communist Party of China (CPC), under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the MHURD has thoroughly implemented General Secretary Xi Jinping's important instructions and directives on housing and urban-rural development. We have fully and faithfully applied the new development philosophy on all fronts, taken solid steps, and forged ahead in a pioneering spirit. As a result, new milestones have been achieved in promoting high-quality development of housing and urban-rural development, contributing to the advancement of Chinese modernization.

I would like to highlight three key aspects:

First, in terms of housing and real estate, we have continuously improved real estate policies and refined the housing support system, striving to ensure all people have access to housing. By the end of 2023, the per capita floor space of urban residents exceeded 40 square meters; a total of over 64 million units of various government-subsidized housing and rebuilt housing in run-down urban areas were constructed, providing dwellings for more than 150 million people. All eligible families on subsistence allowances and low-income families struggling with housing have basically had access to housing. 

Second, in terms of urban areas, we have made solid efforts in advancing the urban renewal project, renovated old urban residential compounds and accelerated urban infrastructure construction, striving to promote high-quality urban development. By the end of 2023, the urban built-up area in China reached 64,000 square kilometers, and the proportion of permanent urban residents in the total population stood at 66.16%, meaning that over 930 million people live in urban areas. Urban functions and living environments have continued to improve. A total of over 250,000 old urban residential compounds have been renovated, benefiting over 44 million households and approximately 110 million people. 

Third, in terms of the construction industry, we have deepened reforms, and made the sector more industrialized, digitalized and environmentally friendly, so as to contribute to economic growth and better living standards. In 2023, the total output value of the construction industry reached 31.6 trillion yuan, and its value added reached 8.6 trillion yuan, accounting for 6.8% of the nation's GDP, and providing over 50 million jobs. 

Chinese modernization prioritizes people's livelihoods. A strong focus on people's well-being is the most prominent feature of our work in housing and urban-rural development. Looking ahead, we will thoroughly study and implement the guiding principles of the 20th CPC National Congress as well as the second and third plenary sessions of the 20th CPC Central Committee. Putting people first, we will focus on addressing the prominent problems that restrict the high-quality development of housing and urban-rural development, and take laying a solid foundation and deepening reforms as our main task. We will emphasize improving mechanisms, institutions and rule of law, and work toward providing green, low-carbon, smart and safe housing for the people. We will make coordinated efforts to advance various reforms in the housing and urban-rural sector, and speed up the fostering of a new development model for real estate. We will deeply implement the urban renewal project, and further promote the transformation and upgrading of the construction industry. Additionally, we will systematically develop "good houses, good residential compounds, good communities and good urban areas," build livable, resilient and smart cities, and promote common prosperity of urban and rural areas. Through these practical efforts, we aim to consistently meet people's aspirations for a better life and contribute to further deepening reform comprehensively to advance Chinese modernization. 

Moving forward, we will focus on the following reform initiatives: 

First, we will foster a new development model for the real estate sector, which can be summarized in four aspects. First, in terms of concepts, we should deeply grasp the principle that housing is for living in and not for speculation, and build quality houses that cater to people's new aspirations. Second, in terms of systems, we will rely primarily on the government to meet the essential housing need, while leveraging the market to satisfy the diverse needs for better housing. Third, in terms of institutions, we will reform and improve the institutions for real estate development, transactions and utilization, laying a solid institutional foundation for real estate transformation. Fourth, in terms of resource allocation, we will foster a new mechanism that connects the elements of personnel, housing, land and financing. 

Currently, the real estate market is experiencing significant changes in its supply and demand dynamics and remains in an adjustment period. However, with the implementation of various policies, positive changes have begun to emerge in the market. Considering China's ongoing urbanization process and the public's new expectations for quality housing, the real estate market still holds substantial potential and room for growth. As long as we maintain firm confidence, effectively implement city-specific policies, we can promote stable and healthy real estate market development.

Second, we will establish new urban planning, development and governance mechanisms. We will uphold the principle that cities should be built by and for the people, meeting new demands as urban development transforms to urban renewal. We will further deepen urban planning, development and governance reform and institute sustainable urban renewal models and related policies and regulations. We will insist on an approach that conducts examinations and identifies problems first, then solves them as the priorities of urban renewal. We aim to create welcoming and resilient smart cities, enabling the people to enjoy more convenient, comfortable and fulfilling lives.

Third, we will promote the transformation and upgrading of the construction industry. We will insist on the guidance on standards and technological empowerment, focusing on reforming and improving a package of basic institutions regarding bidding on construction projects, project supervision, construction cost, completion acceptance and more. We will strive to create a modern construction industry system and shape a business environment upholding good faith conduct, legal compliance, and fair competition while pursuing quality. We will promote the high-quality development of the construction sector to provide high-quality construction products for society.

That's all I have to say for now. Next, we are happy to take questions from the media.

Shou Xiaoli:

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

People's Daily:

The central authorities urged swift action to foster a new development model for the real estate sector. Last month, the third plenary session of the 20th CPC Central Committee made clear requirements regarding this. How has this work progressed so far? What are your further considerations? Thank you.

Ni Hong:

Thank you for the questions. After the Political Bureau of the CPC Central Committee proposed fostering a new development model for the real estate sector, people have been paying close attention to this issue. We have been working with relevant departments to explore how to carry out this work. Mr. Dong will answer the questions.

Dong Jianguo:

The question from the People's Daily reporter addresses the acceleration of constructing a new development model for the real estate sector. This is a major deployment put forward by the CPC Central Committee to adapt to the trends of new urbanization and the significant changes in the supply-demand relationship of the real estate market. It's also a fundamental strategy to prevent and defuse risks in real estate and achieve high-quality development in the sector. The current development model of the real estate sector evolved gradually over a long period. Similarly, fostering a new development model will take time and needs to keep exploring new practices. Together with relevant departments, we have earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, focusing on the following aspects:

First, we have improved the housing supply system. The key is to increase the construction and supply of government-subsidized housing. The State Council and relevant departments issued policy documents to guide local governments in deciding the construction and purchasing of housing according to demand, increasing the construction and supply of government-subsidized housing to satisfy the basic needs of salaried people for a home to live in.

Second, we have directed local governments to develop and implement both long-term and annual housing plans, creating a framework that aligns population, housing, land, and capital. After the MHURD issued a notice in February, different localities have gradually compiled and published annual housing development plans and started preliminary work and considerations for housing development plans for the 15th Five-Year Plan period.

Third, we have effectively promoted sales of completed housing in an orderly manner. We have guided local governments to select new real estate development projects, reach agreements for completed housing sales at the time of land transfer, and formulate supportive policies in line with local condition. Many localities have rolled out projects of completed housing sales, exploring the reform of commercial housing sales systems.

Fourth, we have implemented a coordinated urban real estate financing system and introduced a "white list" system, providing financial support for qualifying projects across various cities. Thanks to our efforts, the financing of real estate development enterprises is now based more on project-based assessments than corporate credit.

Fifth, we have explored and formulated systems for housing examination, housing pension and housing insurance system to establish long-term mechanisms for whole-life housing safety management. Currently, 22 cities, including Shanghai, are piloting this measure. Personal accounts have been set up through home buyers' payment for housing maintenance fund,. The focus of the pilot projects is for governments to set up public accounts.

Sixth, we built good houses that are eco-friendly, low-carbon, smart and safe. We have done some work in setting standards and examples. Next, we will also make efforts to establish systems and optimize services.

The new development model for the real estate sector is a model that emphasizes high-quality, coordinated and secure development. The third plenary session of the 20th CPC Central Committee identified accelerating the establishment of this new development model as a key measure to further deepen reforms. We will work closely with relevant departments, summarizing recent pilot practices and further strengthening top-design. With a focus on ensuring secure housing for the people, we will accelerate reforms to improve fundamental systems related to commercial housing sales, land management, finance, and fiscal and taxation sector. Through these reforms, we will promote institutional innovation, foster this new development model and drive industrial development. We are committed to implementing this task assigned by the Party Central Committee to promote high-quality development of the real estate sector.

Thank you.

CCTV:

As people's lives become more diverse, their expectations for housing have also increased. The MHURD has repeatedly emphasized that the public should live in better homes. My question is: what considerations and plans do you have for creating good housing in the next phase? Thank you.

Ni Hong:

Thank you for your question. I believe everyone is concerned about good housing. I share this concern personally, as I also want to live in a good home. I would like to address this question from three perspectives.

First, why should we build good housing? Second, what defines good housing? Third, how do we build good housing?

First, why should we build good housing? The CPC's founding mission is to sought happiness for the Chinese people and rejuvenation for the Chinese nation. The simplest and most basic understanding of happiness is living and working in peace and contentment. To achieve this, good housing is essential. Providing good housing for the people is required for fulfilling our Party's mission. Second, our reforms and development efforts ultimately aim to improve people's lives. Housing development in our country has now entered a new phase, shifting from simply providing housing to focusing on the quality of housing. As I mentioned in the opening remarks, the average urban housing area now exceeds 40 square meters per person, and people have new expectations for the functionality and quality of their homes. Therefore, we should apply new-generation information technologies, green low-carbon technologies and innovative construction techniques as well as new products and materials to housing development. We should guide the real estate and construction industries to prioritize quality, new technologies and better services over speed and quantity, enabling a true transformation of these industries. The Party Central Committee has made requirements, and the people have their expectations, so the MHURD must take action.

Second, what defines good housing? This is a matter of personal perspective and varies from person to person. With socioeconomic development, advancements in technology and changes in people's needs, the concept of good housing is continuously evolving. Different eras have different definitions of good housing, and even with various sizes and price ranges, there are diverse interpretations of what makes a good house. Everyone has their own idea of what constitutes a good home. However, I believe there are four key characteristics:

First is being green, which means ensuring that people live in healthy environments. This involves several aspects closely related to living conditions, such as room height, indoor temperature, humidity, air quality and lighting, all of which impact physical and mental health. Therefore, a good home should provide comfort, which requires careful design and construction, including proper sealing of doors and windows and effective soundproofing of walls. Recently, the MHURD sought public input on housing requirements. Soundproofing was ranked first, followed by preventing odors in bathrooms and leaks and cracks. Building a good home means addressing these concerns.

Second is being low-carbon, which means saving money for residents and conserving energy for society. How can we save money? In the construction sector, there are three stages: the production of building materials, the construction process and the full lifecycle utilization process, all of which involve energy and carbon consumption. A good house should be of high quality, perform well and have a long lifespan. Additionally, throughout its lifecycle, it should be more efficient in saving water, electricity, gas and energy, thus reducing costs and expenses for residents while also contributing to the conservation of energy and reduction of carbon for society.

The third feature is smart, bringing greater convenience to residents. With electric vehicles now being highly digitized and serving as mobile terminals, we envision "good houses" as larger non-mobile smart terminals, encompassing numerous application scenarios. For example, smart sensing technologies can monitor and adjust indoor conditions such as temperature, brightness, humidity and air quality based on specific needs. Furthermore, intelligent control allows for hands-free operation of doors, windows, lights, air conditioning and other household appliances through voice commands or sensors. Smart appliances, like smart refrigerators, will in the future notify us of low food supplies, reminding us to purchase essentials like eggs on our way home from work. Such systems can also alert residents about expired food. Therefore, I am confident that there are no limits to what we can accomplish. Consequently, in the construction of "good houses," we have allocated substantial space for technological innovation.

The fourth feature is safety, ensuring residents can live with peace of mind. This encompasses several aspects: structural integrity of buildings, designed to be robust and disaster-resistant; operational safety of utilities and systems, where sensors on water, electricity, gas and heating systems, including elevators, are installed to trigger alerts during faults or emergencies; and personal security of residents, where smart interconnected systems can detect unusual activities, ensuring the elderly and children enjoy enhanced safety while at home.

The concept of the "good house" still needs further innovations and adjustments through practice. As such, we invite all areas of society and friends from the media to make contributions and jointly explore ways to promote the construction of better houses.

Third, how do we build "good houses"? This task represents a systematic project, a novel application scenario and an emerging industry that could potentially establish a new competitive arena. These endeavors are not only crucial for satisfying people's living requirements, but are also instrumental in boosting domestic demand and ensuring economic stability through concentrated efforts in the following five main areas:

First, "good houses" must adhere to exemplary standards. We must refine our standards framework, enhancing criteria across designs, materials, construction and equipment. This includes improving standards for accessibility, senior-friendly features and smart technologies.

Second, "good houses" must be well designed. We will direct designers to carefully craft each structure, ensuring optimal utility and value for every square meter of houses.

Third, "good houses" require top-quality materials. We are committed to promoting the research and application of innovative materials, extensively developing eco-friendly construction materials, and consistently improving the performance of building materials in areas such as thermal insulation, heat shielding, waterproofing and environmental protection.

Fourth, "good houses" need excellent construction practices. We will intensify our application of technology, advocating for modern construction methods such as green and intelligent building techniques, aspiring to construct "good houses" with the precision and quality used in automobile manufacturing.

Fifth, "good houses" must have good services. We will advance residential services, significantly improving property management, and bolstering both online and offline support for services including elder care, child care and domestic help.

Our goal for new constructions is to create "good houses," whereas for existing structures, we plan to transform them into "good houses" through urban renewal initiatives.

After establishing "good houses," our broader vision extends to creating "good neighborhoods, good communities and good urban districts," to ensure that citizens live in greater comfort and peace of mind. Thank you.

The New Times: 

In recent years, urban renewal has gained significant attention across various regions, with many cities trending on social media due to their enhanced aesthetics and post-renewal charm. Could you share some successful experiences in urban renewal? What initiatives are planned next? Thank you.

Ni Hong: 

Urban renewal is an inevitable process in the development of cities. Existing buildings now far exceed new buildings. Therefore, maintaining the functionality and utility of these existing buildings through urban renewal is essential. Moreover, this process requires comprehensive reforms spanning planning, construction and management. Mr. Qin oversees this area, so I would like to invite him to answer this question.

Qin Haixiang: 

Thank you. Urban renewal operations are of great concern to us all. Implementing these actions is crucial for transforming urban development models and achieving high-quality development. This initiative was decisively outlined during the fifth plenary session of the 19th CPC Central Committee. Over recent years, we have consistently applied a two-pronged approach of addressing both issues and objectives: deploying policies, initiating pilot projects, and managing key efforts to solidly advance urban renewal nationwide. These efforts have yielded substantial results.

Allow me to briefly introduce some of the main tasks being undertaken in our urban renewal initiatives:

First, we have made a big push to renovate old urban residential compounds. This is an important part of urban renewal initiatives. In recent years, we have focused on serving the people, delivering convenience and security. We have launched three campaigns to improve residential conditions and living environments, namely, "corridor revolution," "environmental revolution" and "management revolution," which have achieved positive results. Since 2019, China has started the renovation of 258,800 old urban residential compounds, benefiting 44.34 million households and around 110 million residents. During this process, we have upgraded 326,000 kilometers of old pipelines for water, electricity, gas and heating, have installed 125,000 elevators and have added 72,700 community service facilities for elderly and child care. At the same time, we have implemented energy-saving renovations to 423 million square meters of buildings and have added 3.6 million parking spaces, 117,000 electric vehicle charging piles, 755,000 e-bike charging piles as well as over 28 million square meters of cultural, recreational and sports venues. While renovating old residential compounds, we have focused on small-scale projects to enhance people's overall wellbeing. Continuous efforts have been made to boost the construction of parks, green spaces and sports facilities near residential areas, including over 40,000 pocket parks and more than 100,000 kilometers of urban green paths. A total of 11,000 hectares of lawn has opened to the public in 6,100 parks, providing citizens with a greater connection to nature and more opportunities for outdoor activities and sports, making our cities more livable.

Second, we have accelerated the upgrading of urban underground pipelines. These initiatives are crucial for enhancing our cities' resilience and safeguarding people's lives and property. In recent years, we have guided localities to upgrade about 100,000 kilometers of pipelines for gas and water supply as well as sewage. Along with the upgrading, we have implemented urban lifeline safety projects by installing intelligent sensing devices to improve our capabilities for monitoring the safety of urban pipelines and bridges as well as conducting early warnings. These efforts have eliminated many security risks and shifted the infrastructure risk control method from passive response to proactive prevention, making our cities more resilient.

Third, we have been actively promoting the construction of smart cities. This is an essential requirement for modern urban development and governance. In recent years, we have strengthened coordination and increased efforts to build a city information modeling platform and an urban operation management service platform. These efforts have enhanced precise and scientific urban management and have promoted new urban infrastructure construction based on digital, internet-based and smart-tech development, making our cities smarter.

Of course, implementing urban renewal initiatives is a long-term task. For the next step, we will earnestly implement the decisions and requirements from the 20th CPC National Congress and the third plenary session of the 20th CPC Central Committee. Guided by the principle that cities should be built by the people and for the people, we will establish a sustainable urban renewal model and policy regulations to create livable, resilient and smart cities. This is an important reform task outlined at the third plenary session of the 20th CPC Central Committee. Guided by scientific principles, the laws of nature and the reality, we will work to pursue high-quality implementation of urban renewal initiatives. 

Our approach to urban renewal involves three key mechanisms: First, we will create and improve new institutions and mechanisms for urban renewal, which will be demand oriented and project based. Currently we are at a stage of upgrading existing resources, which with diverse participants and demands have brought great changes. We should pursue improved existing resources, a more complete range of functions and higher quality in light of actual demands. Second, we will carry out "physical examinations" for cities before urban renewal actions. We will establish and improve a working mechanism to implement "urban physical examinations" and urban renewal initiatives in a holistic way. Particularly, we should take the problems found through these "examinations" as the focus of urban renewal to solve pressing problems that impact people the most as well as shortcomings and weak links that affect cities' competitiveness, carrying capacity, security and sustainable development. Third, we will establish a policy coordination mechanism. We will improve relevant supporting policies in finance, taxation, land use and other fields, encourage the participation of private capital and create new models for urban renewal investment and financing.

Specifically, we will systematically promote the development of good houses, good residential compounds, good communities and good urban districts. Mr. Ni just made an introduction in this regard. We will focus on the following areas:

First, we will continue efforts to renovate old urban residential compounds and resolve problems such as installing elevators, parking shortages and charging difficulties. This year our plan is to renovate more than 50,000 old residential compounds. Based on this, a number of complete communities will be built as well as old blocks and old factory areas will be restored.

Second, we will constantly upgrade cities' "inner" constructions, mainly focusing on underground pipelines and cables. The third plenary session of the 20th CPC Central Committee made decisions and arrangements for strengthening the building of underground utility tunnels and the upgrading of old pipelines. This year, old pipelines with a total length of over 100,000 km are scheduled to be upgraded.

Third, we will vigorously promote the construction of safety projects regarded as lifeblood within cities. We will use digital measures to advance real-time monitoring on various public facilities including water supply, drainage, gas, heating, bridge and utility tunnels. In doing so, early detection, early warning and early disposal of security hazards will guarantee the safe operation of our cities.

Fourth, we will promote urban waterlogging control and have plans to remove the risk of flooding and waterlogging at more than 1,000 highly vulnerable points in 100 cities this year. We will accelerate the systematic construction of urban drainage and waterlogging prevention, and coordinate urban flood and waterlogging controls. An integrated operation and management mode, covering cities' water systems, drainage networks, and surrounding rivers, lakes, seas and reservoirs, will be set up and improved to make cities more capable for flood prevention and more resilient for safe operation. Thank you.

Jimu News:

At present, China's property market is in the process of adjustment and transformation. Could you brief us on the work that has been carried out and the progress that has been made in ensuring the delivery of housing for commercial housing projects? Thank you.

Dong Jianguo:

Thanks for your question. Ensuring the timely delivery of housing is a significant deployment made by the CPC Central Committee and the State Council. It is not only important work to guarantee people's livelihood and to effectively protect the legitimate rights and interests of property buyers, but also conducive to meeting various expectation, boosting confidence in the real estate market as well as preventing and mitigating relevant risks.

On May 17, the State Council held a teleconference to ensure the delivery of housing projects, and made overall deployments on this regard. The MHURD and relevant departments held a briefing at the SCIO on the afternoon of May 17, introducing and interpreting policies on this issue. After the briefing, a series of policies and measures on stabilizing the property market were released, and we stepped up work to promote the delivery of housing in an orderly manner. As a result of city-specific measures being implemented, the country's real estate market has seen positive changes.

To better ensure the delivery of commercial housing projects, the MHURD and the National Financial Regulatory Administration (NFRA) have carried out a campaign to comprehensively check the commercial housing projects under construction that have been sold but not yet delivered within the country. There are 3.96 million housing units nationwide that were supposed to be delivered in accordance with contracts by the end of this year. In order to accomplish this goal, we have worked energetically on the following aspects.

First, policies have been enforced to create synergy. At the national level, the MHURD and the NFRA have implemented the requirements of the overall plan on effectively ensuring the delivery of housing projects, jointly formulated policy documents and organized training on relevant policies for local governments and relevant departments. We have also specified work arrangements on ensuring the housing delivery and enhanced the effectiveness of the urban real estate financing coordination mechanisms. The Supreme People's Court has clarified supporting judicial measures for these issues, such as prudently taking property preservation measures for the real estate "white list" projects. At the local level, municipal governments were asked to introduce city-level action plans, make detailed arrangements and prepare specific disposal approaches for different projects in line with local conditions. Some provinces have formulated provincial overall plans on ensuring the delivery of housing projects, defining objectives and supporting measures.

Second, urban real estate financing coordination mechanisms have played a vital role. We have established a three-tier coordination mechanism at the national, provincial and municipal levels, and included all the eligible projects into the "white list." Commercial banks have be asked to ensure that those who have fulfilled their duties are not held accountable, and provide financial support for all qualified lenders. At present, more than 5,300 projects on the "white list" and loans valued at roughly 1.4 trillion yuan have been approved by Chinese commercial banks in accordance with approval procedures. These funds are being released in line with the progress of the projects, which strongly support their construction and delivery.

Third, we have followed the principle of "one project, one policy" to deal with projects by type. We have guided local governments to implement a disposal approach that assigns each project a different action plan, a special group, a bank, an auditor and a judge. This approach was first piloted in Zhengzhou, and is scheduled to expand throughout the country. For eligible projects, we include them into the "white list," and provide them with financial support to ensure their construction and timely delivery. For insolvent projects, we accelerate the bankruptcy and reorganization or liquidation of project development enterprises, and give priority to protecting the legitimate rights and interests of home buyers in accordance with the Supreme People's Court's regulations on debt repayment.

Fourth, we have made efforts to ensure the quality and timely delivery of projects. The goal of ensuring the delivery of homes is to hand over houses that meet the delivery conditions to buyers. We have established a national system for ensuring home delivery. Each delivery task shall be completed according to the contract signed with each household registering with an ID number and a contact phone number, ensuring that the objectives are achieved down to each household and each buyer. As soon as a home is delivered, it is recorded and marked as completed. Meanwhile, we guide local authorities to strengthen the supervision of project quality to ensure that delivered projects meet the conditions for moving in and avoid discrepancies between what is promised and what is delivered. In addition, the Ministry of Natural Resources has issued supporting documents to address the issue of certification for home delivery projects, striving to ensure that property ownership certificates for such projects are issued as required.

Ensuring the delivery of homes concerns the vital interests of the public. People paid for their homes and should receive them. Next, the MHURD, together with relevant ministries, will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council. We will always prioritize protecting the legitimate rights and interests of homebuyers, hold local governments, real estate developers and financial institutions accountable, take concrete measures, tackle difficulties and strive to ensure the successful delivery of commercial housing projects. Thank you. 

Cover News:

The urban work is closely related to the interests of the people, and has attracted great attention from all sectors of society. The reform resolution adopted at the third plenary session of the 20th CPC Central Committee proposed requirements for urban planning, construction and governance. What measures will be taken next? Thank you. 

Ni Hong:

Regarding the urban work, I would like to invite Mr. Qin to answer this question.

Qin Haixiang: 

Thank you for your question. Everyone is very concerned about urban construction and development since our cities are important carriers for advancing Chinese modernization. The CPC Central Committee and the State Council attach great importance to the urban work. Since the 18th CPC National Congress, General Secretary Xi Jinping has made a series of important remarks and instructions on urban work, guiding China's urban development to historic achievements. As Mr. Ni mentioned, China's urbanization rate has now reached 66.16%. The construction of urban infrastructure is accelerating, urban functions are continuously improving, and the carrying capacity of cities is steadily increasing. Our living environment has significantly improved, and cities have undergone great changes. People's sense of gain, happiness and security have significantly increased. 

Currently, urban development in China has entered a phase of urban renewal, shifting from large-scale incremental construction in the past to placing equal emphasis on quality improvement and renovation of its existing stock and structural adjustment of its increment. The urban development model has shifted from expanding the scale to improving the quality of cities. People now demand a higher standard of living, which requires us to adapt to the new development needs and further deepen reforms in urban planning, construction and governance. The 20th CPC National Congress has made important plans in these areas, and the third plenary session of the 20th CPC Central Committee has outlined key tasks for further deepening reform. We also feel a great sense of responsibility and will work with relevant parties to ensure effective implementation. 

There are several main considerations going forward.

First, we will thoroughly implement General Secretary Xi Jinping's important principle that "cities are built by the people and are for the people." We will take improving people's well-being as the starting point and goal of deepening reform, promote the implementation of urban renewal actions, solve the urgent and difficult problems facing the people, and continuously improve the quality of cities, making people's lives more convenient, comfortable and pleasant. 

Second, while adapting to the new requirements of high-quality development, we will shift our focus on reform from solving the problem of accessibility to improving quality. In the past, we mainly focused on accelerating construction, pursuing speed and scale. In the current stage of improving quality, we will strive to improve management capabilities and levels while continuing construction, and place greater emphasis on enhancing quality and efficiency. 

Third, we will deepen reforms in urban planning, construction and governance, and build a new mechanism that adapts to high-quality urban development. In terms of planning, we will adapt to practical needs of improving stock quality, optimizing functions and upgrading quality, enhance the urban planning system, and further deepen reform of urban planning and design mechanisms. In terms of construction, we will explore and establish sustainable urban renewal models and policies and regulations, strengthen the construction of underground integrated corridors and the upgrading of old pipelines, deepen actions to enhance urban safety and resilience, and innovate investment and financing mechanisms for urban construction and operation. In terms of governance, we will strengthen systematic thinking, focus on overall planning, improve the coordination mechanism for urban management, accelerate the construction and application of urban operation management service platforms, promote the integration of urban management into grassroots social governance, enhance grassroots service management capabilities, and advance the modernization of the urban governance system and governance capacity. Thank you.

Nanfang Daily, Nanfang Plus:

The Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization, adopted at the third plenary session of the 20th CPC Central Committee, called for an increase in the construction and supply of government-subsidized housing to meet wage earners' essential housing needs. What specific steps will be taken next to ensure the effective implementation of this policy? Thank you.

Ni Hong:

Regarding housing, there are two aspects: one is the guarantee system, and the other is the market mechanism. Both need to be managed and coordinated. Could Mr. Dong elaborate on how to achieve this balance?

Dong Jianguo:

The Nanfang Daily reporter's question addresses a key concern for urban families facing housing difficulties, new urban residents and young people. The Party Central Committee and the State Council place great importance on housing security work. Since the 18th CPC National Congress, we've steadily improved our housing security system and expanded government-subsidized housing construction. Last year, the State Council issued a document on the planning and construction of government-subsidized housing, categorizing it into rental and sale properties and exploring new approaches for the latter.

In accordance with the directives of the Party Central Committee and the State Council, we, together with relevant departments, have strengthened overall planning and guidance. We have instructed local governments to focus on constructing sale-type government-subsidized housing to quickly resolve housing difficulties for wage earners. Simultaneously, we have emphasized supplying rental-type government-subsidized housing, offering diverse solutions such as "a bed, a room, or an apartment" to address the housing needs of new urban residents and young people. In the first seven months of this year, construction began on 2.35 million units of government-subsidized housing and resettlement housing for urban village renovations, with over 440 billion yuan invested.

The third plenary session of the 20th CPC Central Committee called for increased construction and supply of government-subsidized housing. Our ministry will work with relevant departments to guide local governments in implementing and enforcing these directives.

First, we focus on planning. Government-subsidized housing planning is a crucial component of the overall housing development plan. We guide local governments to base their plans on regional economic capabilities, real estate market conditions, and the housing needs of various groups in difficulty. We emphasize "building and purchasing according to demand," tailoring government-subsidized housing plans to local conditions through five-year and annual plans. We prioritize allocating government-subsidized housing in areas with convenient transportation and well-equipped public facilities to promote a balance between work and residence. We also summarize and promote the experiences and practices of relevant cities, maintain and improve the rotation system for eligible residents, conduct regular application acceptance, and accurately assess the specific needs of these residents.

Second, we focus on improving the system. At the national level, we've issued a series of policy documents on planning and constructing government-subsidized housing, forming a relatively complete policy system. We are currently guiding local governments to align with the overarching national strategy and combine it with local realities. We encourage them to adhere to the principle of doing their best while acting within their means and to promptly introduce specific implementation opinions, management measures, and supporting policies. We also guide them to further refine and perfect the specific requirements for eligible recipients, protection methods, protection standards, distribution management, and other aspects to ensure the effective and orderly progress of all work.

Third, we focus on project construction. For projects in this year's plan, we are ensuring the implementation of fiscal, tax, land and financial support policies to expedite commencement and construction, enhance quality and safety supervision, and promptly initiate rental and sale arrangements for swift public occupancy. We will also enhance project planning and reserves, prepare for projects for the upcoming two years, and establish a rolling mechanism for project advancement that includes "implementing, reserving, and planning." Additionally, based on local real estate market conditions, we are actively promoting the acquisition of existing commercial housing stock for government-subsidized housing use, accelerating acquisitions for qualifying projects, and ensuring timely rental and sale arrangements.

Fourth, we focus on the "good house" model. Some may believe that "good houses" only refer to improved housing and commercial properties. This is a misconception. Government-subsidized housing is a heart-winning government project. It should be built as "good housing," which is the government's responsibility and obligation. Currently, various regions have identified a number of demonstration projects for government-subsidized housing, which are being developed to be "green, low-carbon, intelligent, and safe." We are continuously improving the quality of government-subsidized housing and striving to ensure that the public live in a healthy, safe, and convenient environment. Thank you.

China Construction News:

The protection and inheritance of urban and rural histories and cultures are related to urban and rural areas' high-quality development. What progress has been made in this regard? What are the considerations for the next step? Thank you.

Ni Hong:

It is our important responsibility to do a good job in protecting and inheriting historical and cultural heritage. In a city or a village, no matter how tall or new a building is, it will be replaced, but only history cannot be replaced. I will invite Mr. Qin to answer your question in relationship to protection efforts.

Qin Haixiang:

Thank you for your questions. I would also like to take this opportunity to thank all friends from the media for your concern and support when it comes to the protection and inheritance of urban and rural historical and cultural heritage. Cities and villages are important carriers of historical and cultural heritage. It is our important responsibility to protect and pass on precious historical and cultural heritage in urban and rural development. In recent years, we have thoroughly studied and implemented the principles from General Secretary Xi Jinping's series of important instructions on the protection and inheritance of historical and cultural heritage as well as the decisions and plans of the CPC Central Committee and the State Council, and have vigorously promoted the protection and inheritance of urban and rural historical and cultural heritage, achieving remarkable results.

First, a systematic work structure has been established to increase the protection and inheritance of urban and rural historical and cultural heritage. The three-tier management system for protection and inheritance work at the national, provincial, city and county levels has been improved, and the system for local housing and urban-rural development departments to report to Party committees on the protection and inheritance of historical and cultural heritage has been advanced. Various regions have put more emphasis on the historical and cultural protection. Working systems, laws and regulations have been continuously improved, and the holistic and systematic protection and inheritance of historical and cultural heritage has been continuously enhanced.

Second, a multi-tier and multi-element system for carrying forward historical and cultural heritage protection in urban and rural areas has been established. There are now 142 famous historical and cultural cities, 312 towns and 487 villages of historical and cultural value as well as 8,155 traditional Chinese villages. More than 1,200 historical and cultural blocks have been demarcated and 67,200 ancient buildings have been identified. A historical and cultural heritage protection system in urban and rural areas with distinctive features, rich variety and large numbers has taken shape.

Third, a favorable atmosphere has been created for the whole of society to jointly protect and inherit urban and rural historical and cultural heritage. Society as a whole has increasingly deepened its understanding of the important value of urban and rural historical and cultural heritage, and the vision of protecting and inheriting historical and cultural heritage has developed deep roots, becoming a general consensus. In recent years, we have co-produced large-scale documentaries such as "Wenmai Chunqiu" (Historical Cities and Their Cultures), " Wisdom in Traditional Chinese Architecture " and "Remembering Homesickness" with CCTV, which fully demonstrate the charm of China's excellent traditional culture. These documentaries have attracted widespread attention and have gathered a strong force from society as a whole to care about and support the protection and inheritance of historical and cultural heritage.

Fourth, we have created a dynamic atmosphere in which urban and rural history and culture are integrated with modern life. In urban and rural development, we have changed our focus from previous demolition patterns to renovation and maintenance, and have preserved a number of old blocks, alleys and lanes in their original conditions, retaining the original residents and vitality. We have carried out pilot projects for the protection and utilization of historic buildings, and have organized and implemented comprehensive environmental improvement projects for historical and cultural blocks, which not only improves living environments but also protects historical and cultural heritage, making the city more distinctive and attractive.

Protecting and inheriting urban and rural historical and cultural heritage is a long-term undertaking. Next, we will thoroughly study and implement Xi Jinping Thought on Culture, pay more attention to coordinating protection and development, protection and people's livelihood, protection and utilization as well as single and overall protection, thus focusing our work on the following four aspects.

First, we will focus on protection. We will guide local governments to continue to strengthen the identification of resources and include historical and cultural heritage of different types and historical periods with local characteristics into the protection list, ensuring that important historical and cultural heritage of each period is systematically protected.

Second, we will focus on utilization. Utilization is the best protection. We will continue to protect, repair and revitalize historical and cultural blocks as well as historic buildings, encouraging local governments to adopt more micro-renovation methods, just like those meticulous ways used in embroidery, and weaving, to make up for shortcomings in infrastructure and public service facilities, so that historical and cultural districts can be revitalized.

Third, we will intensify oversight. We will take strong steps to investigate and punish actions in breach of laws and regulations that damage historical and cultural heritage in urban and rural development. We will continue to do a good job in special assessments for the protection of historical and cultural cities, criticize places that fail to protect them, urge them to make corrections and rectify existing problems, guide local governments to establish a regular inspection and management system for the protection and inheritance of urban and rural historical and cultural heritage, and promptly discover and prohibit acts that violate laws and regulations.

Fourth, we will focus on fundamental work. We will make every effort to advance the formulation and revision of relevant laws and regulations to protect and inherit historical and cultural heritage in urban and rural areas, will accelerate research and formulation of standards, will drive local governments to carry out local legislation and issue local standards in accordance with actual conditions, and will continue strengthening the training of professional personnel. Simultaneously, we will continue to work on the publicity for protecting and inheriting historical and cultural heritage. We also hope that friends from the media will join us in telling the story of Chinese history and culture to pass on and promote excellent traditional Chinese culture.

Thank you!

Shou Xiaoli:

One last question, please.

Phoenix Satellite Television:

From "small and beautiful" projects including residential buildings, parks and schools to large infrastructure projects such as railways, bridges and airports, the construction capacity of China's construction industry has seen continuous improvements in recent years. While developing rapidly, the construction industry is also faced with the important task of improving quality and effectiveness. What are the considerations for improving and upgrading the construction industry at a faster pace? Thank you.

Ni Hong:

Thanks for your question. I will answer it. The construction industry is an important pillar industry for China's national economy. An industry being considered a pillar industry is dependent on its value added. Among various categories of the national economy, whichever industry accounts for over 5% of the GDP is a pillar industry. Just as I mentioned at the beginning, with a proportion of 7%, and 6.8% last year, the construction industry is an important pillar industry. It is also a traditional industry, closely related to the improvement of people's livelihoods. At the same time, it also plays a fundamental role in supporting the development of other industries. Building factories and facilities all require the development of the construction industry. Since the 18th CPC National Congress, we have thoroughly implemented the new development philosophy and have deepened the reform of the construction industry. We have made great efforts to implement an innovation-driven development strategy, promoting transformation and upgrading of the construction industry through technological innovation, transitioning China from a large country in construction into a strong country in construction, and helping the "Built by China" brand gain more recognition. Here are some representative highlights. 

First, we have developed important equipment for the country. We have developed a batch of world-class equipment with proprietary intellectual property rights including skyscraper building machines, shield tunneling machines and bridge girder erection machines, which are all very popular among many Belt and Road Initiative partner countries. 

Second, we have built iconic buildings. For example, the world's top engineering projects such as the Beijing Daxing International Airport, Hong Kong-Zhuhai-Macao Bridge and Shenzhen-Zhongshan Link have all been completed and put into use. Venues such as the National Speed Skating Oval, dubbed the "Ice Ribbon," and the National Ski Jumping Centre, dubbed the "Snow Ruyi," featuring cutting-edge technologies and Chinese style, have presented the scientific and technological strength of "Built by China" projects to the world.

Third, we have gone global. At present, we have built projects in 190 countries around the world and have received these countries' recognition. It can be said that a number of major projects built by Chinese construction enterprises have become landmark projects in these countries.

The third plenary session of the 20th CPC Central Committee has put forward new requirements that national standards should be elevated to guide the upgrading of traditional industries, and enterprises should also be encouraged to apply digital and new green technologies to transform and upgrade these sectors. This has brought new opportunities for the upgrading and transformation of the construction industry. We will work on the following four aspects.

First, in terms of reform objectives, we will work on establishing a modern system for the construction industry, advance the industrial, digital and green transformation and upgrading of the construction industry, and build high-quality buildings and houses that meet the needs of the times and the people.

Second, in terms of methods and paths, we will leverage science and technology to enhance the quality and performance of the construction industry's development, accelerate the integration of new-generation information technology with the construction industry and vigorously develop new construction methods, such as intelligent construction, green construction, and prefabricated construction. Based on this, we will coordinate all sectors of design, production and construction, drive the coordinated development of the entire upstream and downstream industrial chains, including building materials, construction equipment as well as components and parts, and realize standardized design, industrialized production, prefabricated construction, IT-based management and intelligent maintenance. 

Third, in terms of systems and mechanisms, we will improve the system of construction standards for construction projects and give priority to reforming basic systems related to project supervision, project cost and project completion acceptance. Simultaneously, we will continue to improve the safety supervision system for the construction sector and project quality as well as foster an honest, law-abiding and quality-oriented business environment that upholds fair competition.

Fourth, in terms of personnel training, we will focus on cultivating professional and dedicated personnel. We will launch a training plan for construction talents, and create opportunities and favorable conditions to cultivate leading talents, such as masters of survey and design. At the same time, we will cultivate young talents and enable aspiring young men to show their skills in the high-quality development of the construction industry so that they can stand out. We will call for the pursuit of superior workmanship and cultivate modern construction industry workers. Skill competitions will be organized to select the most skilled workers. We will adopt multiple measures to cultivate national-level craftsmen and skilled artisans. We have confidence in making "Built by China" projects gain the same worldwide reputation as "Made in China" products. Thank you!

Shou Xiaoli:

Thanks to Mr. Ni, all the other speakers and our friends from the media for participating. That's all for today's briefing. Goodbye, everyone.

Translated and edited by Xu Xiaoxuan, Huang Shan, Liu Sitong, Wang Yanfang, Liu Caiyi, Liao Jiaxin, Zhou Jing, Li Xiao, Li Huiru, Lin Liyao, Liu Jianing, Wang Wei, Yang Chuanli, Yuan Fang, Yan Bin, Xu Kailin, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration (NFRA)

Mr. Wang Shengbang, director of the Legal and Regulation Department at the NFRA 

Ms. Liao Yuanyuan, director of the Statistics and Risk Surveillance Department at the NFRA 

Mr. Yin Jiang'ao, director of the Property and Casualty Insurance Supervision Department at the NFRA 

Chairperson:

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

Date:

Aug. 21, 2024

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration (NFRA), to brief you on relevant developments and to take your questions. Also present today are Mr. Wang Shengbang, director of the Legal and Regulation Department at the NFRA; Ms. Liao Yuanyuan, director of the Statistics and Risk Surveillance Department at the NFRA; and Mr. Yin Jiang'ao, director of the Property and Casualty Insurance Supervision Department at the NFRA. 

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

Xiao Yuanqi:

Thank you. Good afternoon. I'm very pleased to meet with you again to introduce the progress of the NFRA in promoting high-quality development. On behalf of the NFRA, I would first like to express our gratitude to friends from the media for your strong support, attention and assistance toward the financial work and financial supervision. My colleagues and I are all very willing to answer your questions.

Under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, the NFRA has fully embraced the political and people-oriented nature of financial work. We have promoted high-quality financial development to contribute to the building of a strong nation and the great rejuvenation of the Chinese nation. China has established a multi-tiered, broad and diversified financial institution system. The banking sector now ranks first globally in terms of size of assets, while the insurance market ranks second in the world. Since the beginning of this year, the NFRA has thoroughly implemented the guiding principles of the 20th National Congress of the Communist Party of China (CPC), as well as the second and third plenary sessions of the 20th CPC Central Committee, the Central Financial Work Conference, and the Central Economic Work Conference. We have adhered to the general principle of pursuing progress while ensuring stability, fully and faithfully applied the new development philosophy on all fronts, and focused on the major decisions and deployments of the Party Central Committee and the State Council, achieving new results in promoting high-quality development.

We have remained committed to deepening supply-side structural reform in the financial sector, and guiding financial institutions to adopt the right perspectives on performance and development, focus on their core responsibilities, enhance their capabilities, and transition toward more refined internal management, thereby promoting high-quality and sustainable industry development. I would like to share a few key figures with you: Asset growth has remained stable. As of the end of July, the total assets of banking financial institutions reached 423.8 trillion yuan, marking a year-on-year increase of 7%. The insurance industry's total assets stood at 33.9 trillion yuan, up 7.7% from the beginning of the year. Asset quality has remained stable, with the non-performing loan (NPL) ratio continuing to decline steadily. This year, credit risks have been generally under control. By the end of July, the NPL ratio of the banking sector was 1.61%, down 0.08 percentage point from the same period last year. The disposal of non-performing assets has also intensified, with banks disposing of 1.4 trillion yuan of non-performing assets in the first half of this year. Risk buffers have steadily increased. As of the end of July, the loan loss provision coverage ratio of banks was 216.7%, meaning that loan loss provisions were more than double NPLs. Additionally, by the end of the first half of this year, the capital adequacy ratio of banks stood at 15.53%, while the comprehensive and core solvency ratios of insurance companies were 195.5% and 132.4%, respectively, indicating that banks and insurance institutions are well-equipped to withstand risks. Liquidity has been improving steadily. The two main liquidity indicators for banks, the liquidity coverage ratio and the net stable funding ratio, both meet regulatory requirements. Therefore, China's banking industry is currently stable and improving, with controllable risks and key business and regulatory indicators within healthy and reasonable ranges.

Financial institutions have further enhanced their ability to serve the real economy, with a continued increase in financial supply, particularly for major strategies, key areas and weak links, becoming more precise and efficient. The total deposit balances held by all financial institutions has maintained steady growth. By the end of July, the balance of RMB loans reached 251 trillion yuan, an increase of 13.5 trillion yuan compared to the beginning of the year. The balance of bond investments by banking and insurance institutions stood at 103 trillion yuan, up 4.9 trillion yuan compared to the beginning of the year. The insurance fund investment balance stood at 31 trillion yuan, a rise of 7.4% compared with that at the beginning of 2024. These numbers reflect the supply side of financial funds. Moreover, the funding structure has been optimized. We have intensified our support for the advanced manufacturing and sci-tech innovation sectors. By the end of July, loans to the manufacturing sector rose 11.4% year on year, and loans to the high-tech industry increased by 13.9% year on year. In addition, financial services for micro and small enterprises, as well as for agriculture, rural areas and rural residents, have also improved. Inclusive finance lending to micro and small businesses rose 17.1% year on year by the end of July. Support for the health industry and silver economy has been strengthened. By the end of July, loans to the elderly care sector were up 16.1% compared to the beginning of the year. To support the in-depth integration of the digital economy with the real economy, loans to core industries of the digital economy increased 12.4% year on year. The insurance industry played an important role in the rapid recovery of life and work after disasters, providing effective coverage for damage caused by rainstorms, floods and other calamities. In the first seven months, insurance companies paid out a total of 1.39 trillion yuan in claims and benefits, a 30.2% year-on-year increase. By the end of July, the insurance industry provided financing support totaling 28.5 trillion yuan through bonds, stocks, and other means. These are some key figures I'd like to share.

In accordance with the decisions and arrangements made by the CPC Central Committee, we have constantly improved financial regulatory systems and mechanisms. As a result, the building of regulatory systems has accelerated comprehensively, regulatory and law enforcement capabilities have been strengthened, and financial regulation has become more digitalized and smarter.

Currently, the NFRA is earnestly studying the guiding principles of the third plenary session of the 20th CPC Central Committee. We follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, acquiring a deep understanding of the decisive significance of establishing Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and establishing the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We will continue to uphold Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and uphold the Central Committee's authority and its centralized, unified leadership. We will further align our thinking and actions with the guiding principles of the third plenary session of the 20th CPC Central Committee, ensuring that the principles, policies, decisions and arrangements related to financial work made by the Party Central Committee are thoroughly implemented. We will focus on further deepening reform comprehensively with a view to advancing Chinese modernization. We will celebrate the 75th anniversary of the founding of the People's Republic of China with our remarkable contributions.

That's all for my introduction. We would like to answer your questions now. Thank you.

Xing Huina:

Thank you. The floor is now open for questions. Before asking your question, please identify the media outlet you represent.

CCTV:

In May this year, the NFRA issued guidance on developing technology finance, green finance, inclusive finance, pension finance and digital finance in the banking and insurance sectors. Several months have passed. Can you introduce the work you have carried out and the achievements you have obtained? What measures will you take in the next step? Thank you.

Xiao Yuanqi:

These questions are of great concern to us. As you mentioned, the NFRA issued this guidance in May, and we appreciate your attention to it.

Developing technology finance, green finance, inclusive finance, pension finance and digital finance is a major task assigned to us by General Secretary Xi Jinping at the Central Financial Work Conference.

In terms of technology finance, we mainly focus on targeting the global frontiers of science and technology, the development of the economy, the major needs of the country, and the health and safety of our people. We have accelerated developing a financial system for scientific and technological innovation, concentrating on key links and vital areas. We've provided technology companies with financing services and insurance guarantees better adapting to their businesses and development phases. Meanwhile, we have advanced a virtuous circle of technology, industry, and finance. By the end of June 2024, the balance of loans to high-tech companies nationwide reached 15.3 trillion yuan, with credit loans and medium- to long-term loans each accounting for more than 40%. The loan balance grew 19.5% year on year. Since tech companies often can't provide sufficient collateral, we encourage banking institutions to offer credit loans. Moreover, as it takes time for scientific and technological innovations to become profitable products, we also encourage banks to provide more medium- and long-term loans to sci-tech businesses and industries. This approach ensures loan funds are more compatible with the development cycle of sci-tech firms and industries.

In the area of green finance, the NFRA has introduced guidance on promoting the high-quality development of green insurance and continued improving its work on green finance standards and evaluation. By the end of June, the green credit balance of 21 major banks was 31 trillion yuan, a year-on-year increase of 25.9%. Green insurance claim payments in the first half of this year reached 85 billion yuan.

Regarding inclusive finance, we have issued a notice on inclusive credit work in 2024 and guidance on promoting the high-quality development of inclusive insurance. These two documents have played an important role in advancing inclusive finance in the banking and insurance sectors. Meanwhile, we have further improved the inclusive credit system. By the end of June, the balance of inclusive loans to micro and small enterprises stood at 32 trillion yuan, registering a year-on-year growth rate of 17%.

For pension finance, the NFRA has cooperated with relevant departments to jointly promote private pension schemes. More than 60 million accounts have been set up, and over 500 products have been developed, covering savings deposits, wealth management and commercial pension schemes. We have vigorously advanced commercial pension schemes, accumulating a pension scale worth more than 6 trillion yuan and covering nearly 100 million people. We've also developed financial products for old-age care such as savings accounts, wealth management products and private pension schemes. Previously introduced as pilot projects in some cities and financial institutions, these products are now promoted nationwide.

For digital finance, the NFRA has issued guiding opinions on the digital transformation of the banking and insurance sectors. This aims to accelerate the development of digital financial products and services, as well as strengthen data capability and infrastructure construction.

These major works are what have been carried out recently. Looking forward, in terms of technology finance, the priority is to supervise and urge financial institutions to earnestly implement the full lifecycle financial service requirements for technology-based enterprises, and to guide and nurture more long-term and patient capital to invest in projects at the early stages, in small enterprises, over long time horizons, and in advanced core technologies. In terms of green finance, we need to further improve the relevant statistical systems while enriching the supply of green financial products, particularly enhancing the precision and effectiveness of green financial services. In terms of inclusive finance, our main focus is to further implement and refine the two aforementioned notices, as well as the Implementation Opinions of the State Council on Promoting the High-Quality Development of Inclusive Finance, to achieve effects. In terms of pension finance, we must steadily promote the development of commercial pension finance while requiring insurance institutions to design pension insurance products that are simpler, more convenient and more stable, in order to cater to the characteristics and needs of pension insurance. In terms of digital finance, we must further strengthen top-level design and overall planning, promote innovative applications of digital technologies in the financial sector, increase digital empowerment and enhance the management level of financial institutions. Thank you.

People's Daily:

In recent years, extreme weather and natural disasters have occurred frequently. Could you elaborate on the positive role that the insurance industry has played in responding to disasters and accidents? How can we further leverage functions of the insurance industry to assist in disaster prevention, mitigation, relief, and post-disaster recovery and reconstruction ? Thank you.

Xiao Yuanqi:

I'd like to invite Mr. Yin Jiang'ao to answer these questions. He often arrives at the frontlines of disasters promptly to expedite insurance services alongside insurance and financial institutions. Please welcome Mr. Yin Jiang'ao.

Yin Jiang'ao:

Thank you for your interest in this issue. In recent years, the frequent occurrence of natural disasters has caused significant losses to the people. For example, in the first half of this year, direct economic losses caused by natural disasters in China amounted to approximately 93.2 billion yuan, significantly higher than the 38.2 billion yuan recorded during the same period last year. The NFRA has earnestly implemented the important directives made by General Secretary Xi Jinping, as well as the decisions and deployments of the CPC Central Committee and the State Council, to promote the role of the insurance industry as an economic buffer and social cornerstone. We have actively responded to disasters and accidents as well as have serviced protection for people's livelihood specifically in the following aspects:

We have strengthened industry coordination and deployment. Facing disasters and accidents, under the unified deployment of relevant local party committees, governments and departments, we have prompted the banking and insurance industry, as well as financial regulatory bureaus in affected regions, to promptly activate emergency response plans, establish green channels, improve service standards and play an active role in disaster prevention, mitigation and relief.

We have guided the industry to provide effective claims services. As Mr. Xiao Yuanqi mentioned earlier, in the first seven months of this year, our insurance industry's claims payments totaled approximately 1.39 trillion yuan, representing a year-on-year growth rate of 30.2%, which is significantly higher than the 5.2% growth rate of premium income during the same period, indicating a rapid growth in claims payments. In response to disasters, we have encouraged the industry to introduce policies such as "three exemptions and four expediting measures" for auto insurance claims and "four expediting measures and two exemptions" for farmhouse insurance claims, ensuring timely and comprehensive compensation. As of now, approximately 2.8 billion yuan in insurance claims have been paid out in southern regions severely affected by disasters, such as Hunan, Jiangxi and Guangdong provinces. Insurance institutions have deployed approximately 87,000 personnel and dispatched nearly 58,000 survey and rescue vehicles, effectively help bring production and life back to normal in affected regions.

We have promoted industry collaboration in disaster prevention and loss mitigation. We have guided the insurance industry to play a risk reduction role in pre-disaster warning, in-disaster management and post-disaster rescue. For example, the insurance industry, in conjunction with relevant departments, recently conducted risk assessments for 143,000 enterprises, identifying approximately 540,000 risks and potential dangers. By facilitating rectification measures, we have achieved disaster prevention and loss mitigation.

In summary, the role of our country's insurance industry in responding to disasters and accidents is increasingly prominent. However, compared to the global average, there is still much to be improved. For example, in the first half of this year, global economic losses from natural disasters totaled approximately $120 billion, of which insurance payments accounted for roughly $60 billion, or about 50%. In contrast, insurance payments in China accounted for approximately 10% of disaster-related economic losses, indicating substantial room for growth.

Looking forward, we will follow the guiding principles of the third plenary session of the 20th Central Committee of the CPC and the Central Financial Work Conference to better leverage the functions of the insurance industry. In terms of institutional improvements, we will establish evaluation systems for insurance protection capabilities and refine mechanisms for graded responses to disasters and accidents. For pilot programs, based on the expansion of residential catastrophe insurance coverage's scope earlier this year, we will summarize the practices in Hebei, Hubei, Beijing's Mentougou district and other regions, and promote pilot programs across the country. In deepening reforms, we will expand the supply of agricultural insurance and improve co-insurance mechanisms to enhance risk prevention for major projects. In strengthening supervision, we will optimize standards for underwriting and claim settlements, enhance the quality and efficiency of insurance services and safeguard the legitimate rights and interests of consumers.

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

Market News International: 

In recent years, the net profit growth of Chinese commercial banks has continued to slow down, with private banks experiencing negative growth. What are the main reasons for this and how do you anticipate the future trend of bank's net interest margin? Thank you.

Liao Yuanyuan:

Thank you for the questions from this international media friend. In recent years, the growth rate for net profits of China's commercial banks has continued to slow down, mainly due to the continuous decline in lending rates and the narrowing of net interest margins. From January to July of this year, the average interest rate of newly issued corporate loans by banks fell by 39 basis points compared with the same period last year, and by more than 100 basis points from the previous high point in 2021. In the first half of this year, the net interest margin of commercial banks was 1.54%, a year-on-year decrease of 19 basis points and a decrease of more than 50 basis points from the previous high point. The narrowing of the net interest margin has led to a significant slowdown in the growth rate of banks' net interest income. Since the net interest income of China's commercial banks accounts for about 80% of their operating income, and the commercial banks in our country mainly engage in deposit and loan business, the slowdown in the growth rate of net interest income has a very significant impact on profits. Another factor affecting net profits is that commercial banks have continuously reduced service fees in recent years, with fee and commission incomes declining year on year for five consecutive years.

We all know that maintaining a reasonable profit level is crucial for banks to timely replenish capital, maintain stable operations and enhance their ability to serve the real economy. Faced with pressures from slowing profit growth, in recent years, commercial banks have tapped into internal potential to lower costs and improve efficiency through various measures. Currently, the profitability of Chinese commercial banks remains within a reasonable range. In the first half of this year, the net profit of commercial banks increased by 0.4% year on year, still achieving positive net profit growth. During the same period, the return on assets and return on capital of banks remained basically stable. Moving forward, the NFRA will guide banking institutions to continue strengthening refined management, optimizing the asset-liability structure, cultivating new profit growth points, and continuously improving profitability.

As you just mentioned, the net profit growth rate of private banks has turned negative. We have also noticed this. In the first half of this year, private banks overall remained profitable, but the net profits of several private banks declined year on year. This was primarily because these banks significantly increased their provision allocations compared to the same period last year, which directly impacted their current profits, leading to a temporary decline in net profits for private banks. Thank you.

Haibao News:

How can the five major regulatory requirements be specifically implemented to enhance the full-process and full-chain monitoring and early warning systems for financial institutions and activities? Thank you.

Xiao Yuanqi:

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

Wang Shengbang:

Thank you for your interest. Our primary responsibility at the NFRA is regulation. In line with the "five major regulatory requirements" clearly outlined at the Central Financial Work Conference, we are diligently implementing these requirements, emphasizing a strong and strict regulatory approach. We are leveraging the advantages of our four-tier vertical management system — headquarters, provincial offices, branch offices and sub-branch offices — working together at all levels to continuously strengthen financial risk monitoring and early warning, and enhance risk prevention capabilities. I would like to share several key aspects of our work.

First, we have emphasized the principle of "comprehensive coverage" to achieve full coverage in financial regulation. The Central Financial Work Conference proposed that financial regulatory activities must cover all areas. In accordance with the requirements of the CPC Central Committee and the State Council, financial regulation must cover not only legal but also illegal activities, and manage risks across the entire industry. We adhere to the principles of financial licensing and licensed operations, ensuring that we address both "violations in licensed operations" and "unlicensed activities." The NFRA has utilized new technologies and methods to strengthen information connectivity and improve the monitoring and early warning platform for illegal financial activities. This has improved our ability to identify illegal financial activities and entities, enabling dynamic monitoring, timely warnings, proactive intervention and early resolution.

Second, we have adhered to a risk-based approach and strengthened the prudential regulatory framework for financial institutions. Our regulation is grounded in a risk-based prudential framework, further clarifying the boundaries for the sound operations of financial institutions and guiding them toward prudent management. As you may know, last year the NFRA issued new versions of the "Commercial Bank Capital Management Measures" and the "Measures for the Risk Classification of Financial Assets of Commercial Banks." These two measures form the foundational framework for our prudential regulation. Their implementation will play a crucial role in enhancing the risk management capabilities of commercial banks, further guiding them toward prudent and regulated operations, and strengthening the banking sector's ability to withstand risks. You may have also noticed that two weeks ago, the NFRA officially released a draft of "Measures for the Risk Classification of Insurance Assets" on its website for public comment. This draft emphasizes the importance of identifying the underlying assets of insurance investments based on the principle of transparency and classifying them according to their actual risk, thereby systematically improving the risk management capabilities of insurance companies. Recently, we have also continued to revise the management measures for fixed asset loans, working capital loans and personal loans — part of what was previously known collectively as the "three measures and one guideline" — to further standardize the credit-granting processes of commercial banks and improve their efficiency in serving the real economy.

Third, we have implemented the "four early" requirements to enhance the forward-looking nature of risk warnings. The NFRA has done a lot of work to further improve the risk rating system for financial institutions. We have introduced regulatory rating measures for insurance companies, trust companies and corporate financial companies, which play a foundational role in risk regulation. We have also further developed the risk monitoring and early warning system, enriched the risk monitoring and early warning indicators, and established a regulatory big data platform. By using intelligent analysis tools, we have enhanced our ability to probe and identify risks, increasing the forward-looking nature of risk recognition and improving the precision of regulation. We are also drafting work procedures for early intervention in financial institutions to establish a system with strict constraints for early intervention. The aim is to achieve early identification, early warning, early exposure and early resolution of financial risks.

Fourth, we have increased regulatory intensity and improved regulatory effectiveness. We are implementing stringent regulatory requirements, enhancing oversight by the NFRA, and ensuring coordination among administrative licensing, off-site monitoring, on-site inspections, regulatory enforcement measures and administrative penalties. We are addressing market anomalies and focusing on "key issues" affecting financial stability, such as credit, investment and bills; "key individuals" who pose financial risks, including senior executives and shareholders; and "key behaviors" that disrupt market order, such as related-party transactions and circular capital injection. We are strengthening supervision and imposing strict penalties for illegal and irregular activities. Last Friday, you may have noticed that the NFRA published a draft of the "Regulations on Compliance Management of Financial Institutions" on its official website for public comment. This draft aims to comprehensively enhance compliance management requirements for financial institutions, clarify compliance management responsibilities, and foster a compliance culture that permeates all levels of financial institutions. Over time, compliance will become an intrinsic part of financial institutions, solidifying the micro-foundation of our financial stability. Thank you. 

Bloomberg:

Risk prevention and stringent regulation are important tasks for the NFRA in promoting the high-quality development of the financial industry. What progress has been made in the reform and risk mitigation efforts for small and medium-sized financial institutions? Will the consolidation of regional banks be accelerated in the future? Thank you.

Xiao Yuanqi:

This issue is very important, and many people are concerned about it. I will answer your question. Small and medium-sized banks and insurance institutions are a crucial part of China's financial system. As of the end of June, there were 3,830 small and medium-sized banks nationwide — including city commercial banks, rural commercial banks, rural credit cooperatives and village banks — with aggregate assets reaching 115 trillion yuan, accounting for 28% of the total of the banking industry. Their loan balance is 62 trillion yuan, with nearly 80% directed toward small and micro enterprises and the sectors of agriculture, rural areas and rural people. There are 163 small and medium-sized insurance companies, with aggregate assets of 9.7 trillion yuan, accounting for 30% of the total of the insurance industry. Overall, small and medium-sized financial institutions are operating steadily nationwide, and both their operating and regulatory indicators remain within healthy and reasonable ranges. For example, small and medium-sized banks have a capital adequacy ratio of 13% and a provision coverage ratio of 155%. The solvency of insurance companies, whether in terms of comprehensive solvency or core solvency, remains above regulatory thresholds. This is the basic situation.

Regarding the reform and risk mitigation you mentioned, and whether the consolidation of regional banks will be accelerated, our overall considerations and strong regulatory approach for the reform of small and medium-sized financial institutions include the following aspects:

In terms of reform, we adhere to the principle of seeking practical and steady progress, avoiding a one-size-fits-all approach. China is very large, and small and medium-sized financial institutions are distributed across various regions, from large cities to medium and small cities, counties, towns and villages. Each institution serves a different area, and each has its own unique circumstances. Therefore, we maintain the principle of adopting tailored policies for each province, each bank and each company.

In terms of regulation, our first priority is to strengthen corporate governance. We must reinforce the Party's leadership and convert the institutional advantages of Party leadership into governance effectiveness for these institutions. It is essential to establish and improve systems and procedures for major decision-making to ensure standardized operations. Additionally, we must enhance information disclosure and leverage market discipline and external supervision. This is the first point: strengthening corporate governance. The second point is enhancing the supervision of conduct, focusing on the behavior of major shareholders and strictly preventing large shareholders from manipulating or overriding small and medium-sized financial institutions. Regardless of whether they are large or small shareholders, we support financial institutions in making decisions according to corporate governance procedures and policies. The stable operation of small and medium-sized financial institutions is the most responsible approach toward shareholders, as it ensures that the value of shareholders and stakeholders is realized. We must also strengthen supervision of the behavior of directors, senior management and key personnel, primarily to ensure they diligently perform their duties, to assess their competence and to evaluate their performance outcomes. The third point is that small and medium-sized financial institutions should accurately identify their market positioning. The general principle is to pursue differentiated and specialized development. Differentiation is about avoiding complete homogeneity, while specialization refers to leveraging strengths to form core competitiveness. The fourth point is focusing on core responsibilities and businesses without blindly pursuing size and scale. Small and medium-sized financial institutions should pursue progress while ensuring stability, and avoiding overextending their capabilities and resources by chasing overly rapid growth, excessive scale or overly complex businesses. They should prioritize serving small and micro enterprises, supporting agriculture, rural areas and rural people, advancing rural revitalization, and serving communities and local areas. These are their strengths. By fully leveraging these advantages, small and medium-sized financial institutions have very broad prospects.

Of course, we also need to optimize the regional financial layout. This primarily involves optimizing the financial layout based on factors such as the scale of regional economic development, the total amount of finance, development trends and changes in financial demand. Regarding your question about whether the financial institutions in these regions will accelerate restructuring and layout, the optimization of regional financial layout is an ongoing process, and there is no issue of speed. The main consideration is to optimize the layout based on the total size of the local economy and finance, development trends and financial demand. The fundamental goal is to ensure that financial supply and services can meet the multi-level and diverse financial needs of market entities and financial consumers. Thank you.

Yicai:

The resolution of the third plenary session of the 20th Central Committee of the CPC stated that the mechanisms for protecting financial consumers and cracking down on illegal financial activities should be improved. We all know that protecting the legitimate rights and interests of financial consumers not only concerns the immediate interests of consumers but also plays a crucial role in preventing and defusing financial risks, as well as maintaining financial security and stability. Could you please elaborate on what efforts you plan to make in this area moving forward? Thank you.

Xiao Yuanqi:

This is an important question. Today, we are joined by the director general of the Legal and Regulation Department, so I would like to invite him to answer this question.

Wang Shengbang:

Thank you for your question. As we all know, the banking and insurance industry, or the financial industry, is highly relevant to the public. On both sides of a bank's balance sheet, the liabilities side represents people's deposits and a significant portion of the assets side is also closely related to the public, such as housing mortgage loans. Therefore, the operations of the banking and insurance industry are closely connected to the vital interests of our people. Protecting the legitimate rights and interests of financial consumers and safeguarding people's wealth is an inherent duty of our financial regulation, and can be said to be both the starting point and the goal. Only by effectively protecting the legitimate rights and interests of financial consumers, can we strengthen the public's confidence in the financial system and maintain financial stability. I fully agree with the reporter's view just now. Protecting the legitimate rights and interests of financial consumers is a concrete action showcasing the political- and people-centered nature of financial work. According to the Plan on Deepening Reform of Party and State Institutions, the NFRA is responsible for the overall coordination of consumer protection in the financial sector. Since last year, the NFRA has focused on improving new mechanisms for financial consumer protection and building a new framework for financial consumer protection. We have made some progress and conducted some explorations in several areas of the work.

First, we have established a financial consumer protection system with clearly defined responsibilities. In June this year, the NFRA, in collaboration with the People's Bank of China and the China Securities Regulatory Commission, established a coordination mechanism to enhance information sharing and cooperation on financial consumer protection. At the same time, the NFRA has strengthened its cooperation with courts, procuratorates, public security departments, internet regulators, and market regulators to jointly address cross-industry and cross-sector financial consumer protection issues, such as false advertising and misleading promotions. Additionally, the administration's branch offices at four administrative levels have established local financial consumer protection coordination mechanisms.

Second, we are strengthening whole-process protection for financial consumers. Prior to transactions, we require financial institutions to assess both the risks of financial products and the risk tolerance of consumers and investors. Institutions must adhere to the "triple appropriateness" principle: appropriate target customers, products and sales channels. This ensures that suitable products are offered through proper methods to qualified investors, preventing mismatches. We also aim to enhance consumer education to increase risk awareness. Post-transaction, we enhance protection through regulatory reporting and evaluation mechanisms to ensure compliance. To address the high volume of consumer-financial institution disputes, we need to explore establishing diverse financial dispute resolution mechanisms. We aim to implement the grassroots social governance practices of the new era, enhance the efficiency of dispute resolution, and better safeguard consumers' legal rights.

Third, we aim to enhance the responsiveness of financial consumer protection. We focus on key issues that affect people's daily lives, such as addressing forgotten insurance policies and notifying people about dormant bank accounts. Some individuals have forgotten about insurance policies purchased years ago, while numerous bank accounts lie dormant, unknown to their holders. Therefore, we are working to clean up these forgotten policies and remind people about dormant accounts, ensuring that our efforts genuinely benefit the public and reflect the warmth of financial regulation.

Fourth, we are creating a well-regulated and trustworthy financial consumer environment. We are advancing the development of an integrity system within the financial sector, establishing mechanisms to restrict dishonest entities, and increasing penalties for serious violations. We are also enhancing coordinated governance mechanisms in the financial consumer sector to combat illegal activities and regulate marketing practices. These efforts aim to strengthen consumer protection measures, laying a solid foundation for the sustained, healthy development of the financial industry. Thank you.

CNBC:

How do you view the impact of market interest rate fluctuations on the insurance industry? Thank you.

Yin Jiang'ao:

Thank you for your question. Interest rate management is crucial for insurance companies, especially life insurance companies, as it directly affects the industry's stability and high-quality development. Currently, China's insurance industry is undergoing a period of transformation and upgrading, which inevitably brings difficulties and challenges. The NFRA places great emphasis on the high-quality development of the insurance industry by following a coordinated approach and addressing both symptoms and root causes. We have taken multiple measures to push forward the insurance industry, especially the life insurance industry, to strengthen its management of profit sources and improve the quality of liabilities. To enhance interest rate margin management, we're guiding the industry to lower assumed life insurance product pricing rates at a proper time and establish a dynamic adjustment mechanism linking these rates to market interest rates. We're expediting the transfer of asset-side yields to liability fund cost rates, improving asset-liability matching. This reinforces how investment returns constrain settlement rates and dividend levels, ensuring realistic and reasonable customer benefits. Additionally, we are urging insurance companies to adjust product structures, optimize the illustration of policy interest rates, and reasonably guide market expectations.

In terms of cost and expense management, we have deepened the alignment of reported expenses with actual practices. This approach enhances life insurance products' precision and scientific management across various channels, improving operational efficiency. Additionally, we have guided the China Association of Actuaries in compiling the fourth set of experience mortality tables for the life insurance industry, providing a solid foundation for accurate and scientific pricing by insurance companies.

Looking ahead, we will continue to drive the insurance industry to transform its development approach, deepen supply-side reforms, and enhance efficiency while reducing costs, thereby promoting high-quality development in the sector. At the same time, we will follow development principles, strengthen the linkage between assets and liabilities, solidify the foundation for growth, and foster a favorable environment. This approach will ensure effective public insurance coverage while enhancing service quality and efficiency for the real economy, ultimately improving social welfare. Thank you.

The Paper:

Could you discuss the progress and achievements of the real estate financing coordination mechanism since its inception? What areas of concern remain? Thank you.

Xiao Yuanqi:

I'll defer to Ms. Liao, who has been directly involved in this work, to address these questions.

Liao Yuanyuan:

Thank you. In January of this year, the Ministry of Housing and Urban-Rural Development and the NFRA jointly issued guidelines for local governments to establish urban real estate financing coordination mechanisms. To ensure the effective implementation of the mechanisms, our two ministries set up a national task force in April to jointly concentrate on the work, while also guiding local governments to establish their own task forces to carry out related work. In June, with the approval of the State Council, the NFRA and the Ministry of Housing and Urban-Rural Development jointly issued a notice introducing several optimization measures to improve the efficiency and quality of the whitelist project recommendations. These measures are intended to further leverage the role of the urban financing coordination mechanism, address legitimate financing needs for real estate projects, and support timely and good-quality housing delivery.

The urban coordination mechanism requires cities to take primary responsibility and centers on specific projects. Through collective efforts, the mechanism has effectively supported the financing of real estate projects, achieving phased results. Currently, commercial banks have approved 5,392 projects on the "whitelist," with approved financing totaling nearly 1.4 trillion yuan. The mechanism has ensured timely funding for whitelisted projects that meet the criteria, playing a positive role in facilitating project completion and delivery, safeguarding the legitimate rights and interests of homebuyers, and stabilizing the real estate market.

Currently, to ensure the timely delivery of housing projects, urban coordination mechanisms are comprehensively gathering information on ongoing real estate projects within their jurisdictions that are under construction and have been sold, but not yet been delivered. For projects that need financing support through the whitelist, but have not yet met the criteria, the urban coordination mechanisms are urging banks to provide targeted advice and recommendations, and real estate enterprises to take timely measures to rectify problematic projects. Meanwhile, local governments are urged to strengthen coordination to ensure that projects meeting the whitelist criteria are promptly included in the program.

Since the beginning of this year, the NFRA has continuously guided financial institutions to provide real estate financing services through multiple channels. By fully utilizing various policy measures, including the urban coordination mechanism, banking institutions' financing of the real estate sector has maintained a steady and increasing trend. At present, the balance of real estate development loans has increased by over 400 billion yuan since the beginning of the year, commercial property loans have seen a 19% year-on-year increase, and merger and acquisition loan balances have increased by 21% year on year. From January to July, commercial banks issued a total of 3.1 trillion yuan in new personal housing loans, effectively supporting the rigid and improving housing demands of residents.

Next, the NFRA will resolutely implement the decisions and arrangements of the Party Central Committee and the State Council regarding real estate work, continue to promote the fulfillment of responsibilities among local governments, real estate enterprises and financial institutions in collaboration with relevant departments, and better leverage the role of the urban coordination mechanism. It will guide financial institutions to continuously improve real estate financial services, supporting the stable and healthy development of the real estate market. Thank you.

China Banking and Insurance News: 

My question is about agricultural insurance. What measures has the NFRA taken in recent years to promote agricultural insurance, serve agricultural production and standardize the development of agricultural insurance? What policy initiatives will be introduced going forward to promote the high-quality development of agricultural insurance? And, in response to current meteorological changes, what innovations will be developed in agricultural insurance products? Thank you.

Yin Jiangao:

Thank you for your question. Agricultural insurance is a crucial means to safeguard agricultural production. In recent years, the NFRA has been focusing on promoting the transformation and upgrading of agricultural insurance, enhancing its protection and service capabilities, and has achieved positive progress. In the first half of this year, agricultural insurance payouts amounted to 47.5 billion yuan, an increase of 5.1% year on year, benefiting 16.26 million rural households. Here are some key points:

We have focused on "expanding coverage, increasing varieties and raising standards" to broaden the scope of agricultural insurance and enhance its protection levels. This year, we have extended comprehensive cost insurance and planting income insurance for the three main grains — corn, wheat and rice — to all regions across the country. According to estimates, this has added approximately 400 billion yuan in insurance coverage for agricultural production nationwide. At the same time, we have added local specialty agricultural insurance products, such as comprehensive cost insurance and planting income insurance for sugar cane in Guangxi Zhuang Autonomous Region. Given the significant differences in agricultural production across the country, there is still considerable room for exploration in local specialty agricultural insurance.

We have promoted the standardization of agricultural insurance business and strengthened the protection of farmers' interests. We have introduced the Agricultural Insurance Underwriting and Claims Management Measures and the Agricultural Insurance Actuarial Regulations. We have also released the industry benchmark pure risk loss rate table for the cost insurance of the three main grains at the prefecture-level, primarily to support differentiated pricing in various regions. Additionally, we have arranged special annual inspections of agricultural insurance, strictly investigating and dealing with illegal and non-compliant activities, to promote business standardization.

We have strengthened the standardization of agricultural insurance, promoting the improvement of management and operational levels. We have organized the industry to compile service specifications for underwriting and claims in planting insurance, livestock insurance and forest insurance, and guided the industry to develop the Agricultural Insurance Product Development Guide, releasing model clauses for insurance of the three main grains, among others. Overall, we have achieved positive progress.

To promote the construction of an agricultural powerhouse, agricultural insurance must play a more pivotal role. For example, last year, China's added value of agriculture was approximately 9 trillion yuan, ranking first globally. During the same period, the amount of protection provided by agricultural insurance in China was around 5 trillion yuan, suggesting ample room for growth. Next, we will deepen the reform of agricultural insurance, broaden its service areas, and serve the high-quality development of agriculture. We will build a multi-level agricultural insurance product system, extending from protecting replacement costs to protecting economic value, and enhance the level of agricultural insurance protection. We will also promote the introduction of pure risk loss rates for major insurance types, industry model clauses for comprehensive cost insurance and planting income insurance, and precise policy documents for underwriting and claims, to promote the standardized operation of agricultural insurance.

In terms of climate change, we will also guide insurance enterprises to respond proactively and gradually launch innovative pilot projects such as weather-based index insurance and regional yield insurance. We will promote the gradual transformation of agricultural insurance from cost protection to income protection. We will also expand from covering only the production stage to covering the entire industrial chain. This will gradually form a comprehensive insurance protection system for agricultural development. Thank you.

Xing Huina:

One last question, please.

Science and Technology Daily:

In recent years, China has continued to strengthen financial support for scientific and technological innovation. What work has been carried out by the NFRA concerning the reform of technology finance? What aspects will be focused on in the next steps? Thank you. 

Wang Shengbang:

Thank you, media friends, for your keen interest in scientific and technological innovation. As you all know, China's economy is transitioning from a stage of high-speed development to one of high-quality development. Implementing an innovation-driven development strategy is a crucial focus. Within this overall strategy, sci-tech companies, particularly small- and medium-sized enterprises, play a vital role. Our primary tasks, both now and in the near future, are to further enhance innovation of technology finance, improve the financial sector's ability to serve scientific and technological innovation, and develop a sci-tech financial system that aligns with scientific and technological advancements. The NFRA has earnestly implemented the guiding principles of the third plenary session of the 20th CPC Central Committee and the Central Financial Work Conference. We have strengthened regulatory guidance to encourage banks and insurance institutions to increase their investment in sci-tech enterprises, giving priority to cultivating patient capital and long-term investment. As you all know, sci-tech enterprises have distinctly different characteristics from those in other industries. They are characterized by innovation-driven processes, technology intensity, high-growth potential, extended R&D cycles and high levels of uncertainty. Therefore, traditional financing models cannot fully adapt to their needs. In light of this, the NFRA has undertaken several initiatives.

First, we are improving the technology finance policy framework. The NFRA has issued guidelines on developing technology finance, green finance, inclusive finance, pension finance, and digital finance for the banking and insurance sector. We have also issued a document on technology finance, namely the notice on strengthening full life-cycle financial services for sci-tech enterprises. This notice further optimizes the service mechanism for offering credit loans to sci-tech enterprises, guiding banking and insurance institutions to provide differentiated and targeted financial services to sci-tech enterprises in different industries and at different growth stages. The aim is to continuously improve service efficiency and adapt to the financial needs of different companies. Financial needs encompass both financing and intellectual support, and they vary at different stages of a company's development. A sci-tech start-up may require equity investment initially. During the growth stage, it might need loan financing. Upon reaching maturity, the company may seek more insurance products to hedge against uncertainty and risks. 

Second, we are actively developing innovative financial products. We have regulated the development of exclusive financial services such as “loans + outbound direct investment,” technology insurance, and supply chain finance for leading sci-tech enterprises. The NFRA has worked with the National Intellectual Property Administration to implement paperless online registration for intellectual property pledge financing nationwide, facilitating the financing of sci-tech enterprises. We are guiding large banks in conducting intellectual property valuation. This is crucial because registration and valuation are important prerequisites for obtaining financing. Without accurate valuation, loan issuance and financing face challenges. As Mr. Xiao just reported, by the end of June, the loan balance for high-tech companies in China had increased by 20% year on year, and the balance of intellectual property pledge loans had reached 234 billion yuan, up 38% year on year.

Third, we are further leveraging the risk protection capabilities and long-term funding advantages of insurance capital. Sci-tech enterprises inherently face high levels of uncertainty, which naturally aligns with the risk protection function of insurance. By the end of June, insurance companies had provided 6 trillion yuan in insurance coverage for risks associated with various stages of scientific and technological activities, including R&D, industrial application of advances, and application promotion. We have also supported the removal of policy barriers that previously hindered insurance funds from engaging in equity investment and venture capital investment. Some large insurance companies are now actively participating in various funds and equity investments. As of the end of July, long-term equity investments from insurance funds had reached 2.7 trillion yuan.

Fourth, we are improving regulatory incentives for technology finance and enhancing professional service capacities in this sector. Sci-tech enterprises have distinct characteristics: they are often asset-light, have long R&D cycles, and face considerable uncertainties. In the past, when banks assessed creditworthiness, they focused on traditional enterprises' assets and credit history, an approach based on tangible evaluations. This method doesn't suit sci-tech enterprises. To address this, we're working on further improving the credit evaluation system. We're encouraging a shift from the traditional focus on checking financial statements and collateral toward assessing capabilities, products, and future prospects. While traditional credit ratings look backward, credit ratings for sci-tech enterprises need to look forward. We're encouraging banks to develop differentiated credit evaluation systems that align with the operational characteristics of innovative sci-tech enterprises.

Innovative sci-tech enterprises undergo a lengthy process, from developing a single patent or technology to achieving mass production. Consequently, short-term performance evaluations struggle to accurately measure the success of equity investments and loans in this sector. We are encouraging banks to explore relatively longer-term performance assessment schemes, appropriately increase their tolerance for non-performing loans, and establish mechanisms to ensure that those which have fulfilled their duties are not held accountable.

Next, we will earnestly implement the guiding principles of the third plenary session of the 20th CPC Central Committee. With a reform-oriented mindset, we will take profound and practical measures to further advance the implementation of technology finance policies. We will establish comprehensive pilot zones for intellectual property financial ecosystems in areas with active scientific and technological innovation. These zones will provide diversified financial support to enterprises. We will explore the use of financial asset investment enterprises as platforms to expand the scope of equity investment pilot programs. We will investigate ways to raise the proportion of insurance funds that can be invested in venture capital funds. We'll support insurance companies' investments and encourage more insurance funds to act as long-term patient capital in the science and technology sector. We will also facilitate the participation of wealth management companies and other financial institutions in providing technology financial services in accordance with laws and regulations.

Thank you!

Xing Huina:

Due to time constraints, today's briefing is hereby concluded. If you have any questions, you can contact us after the briefing. Thanks to all the speakers and all our media friends.

Translated and edited by Wang Yiming, Wang Qian, Zhou Jing, Huang Shan, Wang Ziteng, Qin Qi, Yuan Fang, Mi Xingang, Zhang Junmian, Liu Caiyi, Yang Chuanli, Li Huiru, Xu Kailin, Wang Yanfang, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Liu Haitao, deputy commissioner of the National Immigration Administration (NIA)

Ms. Peng Ling, director general of the Department of Citizens Exit-Entry Management of the NIA

Mr. Liu Jia, deputy director general of the Department of Foreigners Management of the NIA

Chairperson:

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

Date:

Aug. 19, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Liu Haitao, deputy commissioner of the National Immigration Administration (NIA), to brief you on relevant developments and to take your questions. Also present today are Ms. Peng Ling, director general of the Department of Citizens Exit-Entry Management of the NIA; and Mr. Liu Jia, deputy director general of the Department of Foreigners Management of the NIA.

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

Liu Haitao:

Ladies and gentlemen, good morning. It's a great pleasure to meet you again. I would like to express my gratitude to you for your long-term interest in and support for the immigration management work. 

The third plenary session of the 20th Central Committee of the Communist Party of China (CPC) issued the resolution on further deepening reform comprehensively. Established in April 2018 following reforms, the NIA has firmly implemented the series of important instructions and directives of the CPC Central Committee with Comrade Xi Jinping at its core, regarding immigration management work. The NIA has continuously deepened immigration management reform as well as policy and institutional innovation, creating a secure, orderly and dynamic immigration management environment for high-quality development.

First, the NIA has significantly enhanced services to promote the nation's opening up and development. In line with the strategy of invigorating China through developing a quality workforce, we have implemented more proactive and effective immigration management policies to attract talent. This has involved improving a comprehensive response system for international talent in all links, including entry and exit, stay and residency, permanent residency, and social integration. We have facilitated and coordinated the introduction of a large number of international professionals across various fields such as science, education, culture, health and sports, including those urgently needed in critical sectors. These efforts have gathered an increasing amount of intellectual resources. By assembling the brightest minds from all over and fully drawing on their expertise, we aim to achieve greater self-reliance and strength in science and technology. We have proactively contributed to the creation of a new development pattern and accelerated the institutional opening up of immigration management. We have introduced over 300 measures to stabilize industrial and supply chains and to promote the development of shipping, saving shipping enterprises a total of 2.05 billion yuan in various fees since the beginning of the year. By helping enterprises ease difficulties, reduce costs and increase efficiency, we have consolidated and enhanced our new advantages in participating in international competition and cooperation. Furthermore, we have vigorously promoted personnel exchanges and interactions, issuing over 110 policies and measures to facilitate the entry of foreign nationals into China. We have continuously refined polices for visa-free entry, visa-free transit and port visas among others, leading to a steady rise in the number of foreign visitors. Recently, "China Travel" has gone viral online, with more foreign tourists witnessing firsthand a China that is open, confident, civil and safe. They have also personally experienced China's development achievements and the positive, united and hardworking spirit of its people. The 144-hour visa-free transit policy, which has become very popular recently, now covers 37 ports and 54 countries, and I believe vividly illustrates the high-level opening up and high-quality development of China's immigration management services.

Second, the NIA has consistently taken practical measures to make it easier for the public to obtain documents and handle procedures. In recent years, we have been dedicated to addressing people's expectations regarding exit and entry processes. To simplify document acquisition, we have introduced several policies, including "one-trip" and "nationwide accessibility" services for gaining exit and entry permits, full online processing for exit and entry permit replacement and reissuance, mainland services for replacing and reissuing the Mainland Travel Permit for Hong Kong and Macao Residents, and options for Taiwan residents to obtain mainland travel permits online, at ports or through centralized agencies. These initiatives have made obtaining exit and entry permits faster, smoother and more economical for the public. To streamline customs clearance, we have taken measures to ensure that Chinese citizens wait no longer than 30 minutes in line, reducing the average inspection time to 45 seconds per person. Our customs clearance speed has been among the fastest in the world. To enhance service satisfaction, we have established the Government Service Platform of the National Immigration Administration, offering one-stop services including service appointment, document processing and exit-entry record inquiries. We have also launched the 12367 service hotline, providing 24/7 policy consultation. Additionally, we have rendered the use of exit-entry permits more convenient, so that Hong Kong, Macao and Taiwan residents, as well as overseas Chinese, can enjoy convenience in 35 areas such as travel, communication and financial services, simply by using their exit-entry permits. 

Third, we have safeguarded national security and stability of borders through new efforts. High-quality development depends on high-level security. These last few years, we have always adhered to enforcement that is strict, standardized, impartial and civilized. We protect lawful actions, crack down on illegal ones and guide people to abide by the law, maintaining the normal order in entry and exit administration according to the law. The entry-exit and border inspections at ports are tight. Foreigners' visas are signed and issued in adherence with the rules. Border patrol and control have been strengthened. For four straight years, we have conducted special actions to combat criminal activities disturbing border management, cracking down on illegal border crossings, cross-border gambling and electronic fraud, the smuggling and trafficking of drugs as well as other cross-border illegal and criminal activities. This has resulted in a continuous decrease in the number of illegal border crossings, with the security situation at the border continuing to improve. After years of efforts, the order of entry-exit administration is the best in history. Immigration administration is becoming a brand-new window for China's efforts in advancing law-based governance and ensuring security. 

The third plenary session of the 20th CPC Central Committee raised new requirements on further deepening reform and promoting modernization in immigration administration while injecting new momentum for implementation. We will thoroughly study and implement the spirit of the third plenary session, stepping up efforts to boost development while ensuring security, increasing vitality while maintaining order, and strengthening regulation while improving services in order to continue our contribution to Chinese modernization.

That's all for now. Next, my colleagues and I are happy to take your questions. Thank you!

Xing Huina:

The floor is now open to questions. Please identify the news agency you work for first.

Red Star News:

We have noticed that since last year China has trialed unilateral visa-free policies for several countries and has implemented mutual visa-free policies with other countries. In particular, our immigration authority has extended the coverage of the 144-hour visa-free stopover policy and has adjusted as well as eased port visa application requirements, among other policies and measures, with the aim to facilitate foreigners travelling to China. What results have these measures achieved? Do you plan to roll out more facilitative measures? Thank you.

Liu Haitao:

Thank you for the questions. I will address them. I just mentioned that the hashtag "China Travel" has recently gone viral on social media platforms worldwide. Thanks to this, our policies and measures that provide convenience to foreign visitors, including the 144-hour visa-free stopover, have become well-known. Over the years, the NIA has worked with relevant departments to expand the scope of the visa-free policy to include more countries, and has carried out a series of policies and measures to facilitate foreigners coming to China. These policies can be summarized in three aspects, as I will explain. 

First, the 144-hour visa-free stopover policy offers convenience to foreigners. The visa-free transit policy has been implemented since January 2013, with eligible countries and ports, length of stay, and areas for stay continuously being optimized. Since the beginning of this year, this policy has further released dividends, attracting foreign tourists and making the increasing openness of China more well-known.  

Second, differentiated visa-free transit policies attract foreign visitors from diverse regions. These policies include: 144-hour visa-free entry for foreign tour groups to Guangdong via Hong Kong and Macao; 144-hour visa-free entry for tour groups from ASEAN countries to Guilin, Guangxi; 30-day visa-free stay for visitors from 59 countries entering Hainan; and 15-day visa-free stay for foreign tour groups on cruises across China's coastal provinces. Recently, we launched a 144-hour visa-free transit for foreign tour groups entering Hainan via Hong Kong and Macao. More than 5.9 million foreign tourists have benefited. 

Third, we have innovated port visa policies to attract foreign businesses by further easing the requirements for port visa applications. Foreigners who urgently need to come to China to engage in business, trade, visits and other activities can apply for port visas with 100 relevant authorities in 73 cities. We provide many convenient services for foreign business personnel and investors, including re-entry visas, to ensure their easy entry and easy stay. 

These policies are complementary and synergistic, and the benefits are multifaceted. The most direct change they bring is the rapid increase of foreign visitors to China. According to NIA statistics, from January to July of this year, a total of 17.25 million foreigners have entered China via different ports, an increase of 129.9% year on year. The number of port visas issued was 846,000, an increase of 182.9% year on year. 

The most significant impact has been the direct boost to China's inbound tourism market. According to data released by the National Bureau of Statistics in 2023, foreign tourists visiting China spend an average of 3,459 yuan daily, which is expected to directly boost consumption by over 100 billion yuan.

Moving forward, we will continue to optimize and improve policies and measures such as visa-free transit. We plan to expand the scope of activities, increase interconnected regions, and enhance our openness strategy. These efforts will further increase the value and appeal of our policies. Additionally, we will actively coordinate with relevant departments to improve convenience for foreigners visiting and staying in China.

I would also like to extend an invitation to our friends from around the world. We welcome you to visit China at your convenience and experience firsthand the beauty of China in the new era. China's doors are always wide open to you. We welcome your visit. Thank you.

The Poster News APP:

Currently, residents in 20 cities, including Beijing, can apply for and renew their exit-entry documents online without requiring an in-person visit. Could you share the experiences gained from these pilot programs? Will the scope of these trials be expanded in the future? Thank you.

Liu Haitao:

I'd like to invite Ms. Peng to answer your questions.

Peng Ling:

Thank you for your question. To further advance online reforms in immigration services, we launched a pilot program on May 6 this year in 20 cities, including Beijing, allowing local residents to apply for and renew their exit-entry documents entirely online. In the past three months, we have issued documents to more than 70,000 people, earning widespread praise from the public.

Our experience can be summarized as follows: First, we prioritize convenience for the public as the primary focus of reform. The "fully online process" has expanded options for handling exit-entry documents, allowing people to apply with just a few clicks anytime, anywhere, saving applicants significant time and effort. This meets the public's expectations for immigration management services that can be fully handled online and strengthens our confidence to continue deepening reform based on people's needs. Second, we prioritize the protection of citizens' personal information. We enforce strict security standards and rigorous measures. We have established a robust network security system to safeguard information storage and transmission, ensuring the absolute security of citizens' personal information. Third, we focus on problem-solving. During the pilot phase, some applicants reported issues with the online system's user-friendliness and low acceptance rate for submitted photos. In response, we quickly optimized over 20 functional modules and created step-by-step instructional video guides, continually boosting user experience and satisfaction.

Since the beginning of this year, the implementation of convenient measures, including the fully online process, has boosted the issuance of entry and exit documents. To date, we've issued 15.82 million regular passports and 61.73 million exit-entry permits and endorsements for Hong Kong, Macao and Taiwan, representing year-on-year increases of 25% and 6%, respectively.

Next, we will promptly evaluate the outcomes of the pilot programs. Following the principles of "safety first and orderly progression," we plan to gradually expand the range of pilot cities, document types, and eligible applicant groups, allowing more people to enjoy the benefits brought by these reform measures.

Thank you.

People's Daily:

In recent years, with China's rapid economic development and increasing openness, mainland residents have shown a strong demand for international travel, business and study. The number of travelers crossing national borders has been steadily rising. What measures has the NIA taken to serve and support mainland residents' exit and entry needs, and what have been the results? What favorable policies or measures are planned for the future? Thank you.

Peng Ling:

Thank you for your question. As you noted, our country's high-quality socio-economic development has increased mainland residents' desire for international travel. Public interest in immigration management services is strong, with high expectations for international standards and work performance. In response, we are committed to establishing a modern immigration management system and mechanism that aligns with new institutions for a higher-standard open economy.

First, we have always adhered to performing our duties according to the law, having firmly established the concept of strict, standardized, impartial and civilized enforcement as well as resolutely preventing and cracking down on illegal and criminal activities that involve the field of exit and entry while effectively safeguarding the legitimate rights and interests of citizens. By continuously improving our governance capabilities, we have established a lawful, safe and orderly exit and entry management, providing solid and smooth guarantees for Chinese citizens and enterprises to go global.

Second, in the reform driven by the one-stop government services initiative, we have continuously streamlined application documents, optimized certificate issuance procedures, scientifically set up service windows, and increased technological empowerment. As a result, the entry/exit documents application has evolved from a nationwide, one-stop service that required a one-time visit to an intelligent express service that is fully processed online and doesn't require any visit.

Third, we have continually enhanced the efficiency of entry and exit and border inspections. By setting up dedicated channels for Chinese citizens at ports with heavy passenger traffic, we have brought warm feelings to those traveling afar and returning home. Express lanes have been established at over 200 land, sea and air ports to further shorten customs clearance time and improve travel experiences. Furthermore, we have implemented joint inspection and one-time release at the Hong Kong-Zhuhai-Macao Bridge and Hengqin Port, effectively alleviating congestion at large ports.

Additionally, to safeguard the entry and exit rights and security interests of Chinese citizens, we have collaborated with diplomatic departments to promote more countries to facilitate the entry, stay and residency of Chinese citizens. We proactively strengthen security risk warnings, guiding citizens to avoid dangerous regions and preventing personal harm and property losses. We also respond to and cooperate with our overseas institutions around the clock, promptly and properly handling overseas emergencies and actively providing emergency services and support to citizens and their families.

In the next step, we will continue to wholeheartedly do practical and beneficial things and solve difficulties for the people, providing more high-quality, efficient and convenient immigration management services for the vast number of people entering and leaving the country, continuously enhancing people's sense of fulfillment, happiness and security.

Thank you!

Global Times:

On Dec. 1 of last year, the NIA officially launched the issuance of a new ID card for foreign permanent residents, also known as the "five-star card." May I inquire about its current effect and the conveniences it offers in use? Thank you.

Liu Jia:

Thank you for your questions. The "five-star card" is a legal identity document issued by the NIA to eligible foreigners who have been approved for permanent residency in China. The issuance of this card is an important measure of the NIA to implement the strategy for making China a talent-strong country as well as to serve and safeguard the country's high-standard opening up and attract talents and investment. Since Dec. 1 of last year, the number of international talents applying for the new Foreign Permanent Resident ID Card, or the "five-star card," has increased by 30% year on year, which is closely related to the facilitation that the card brings. Allow me to briefly introduce some of its conveniences.

In terms of transportation, the "five-star card" can be used to purchase train, air and bus tickets online and offline. It can also be used for ticket checking, check-ins and security checks at airports, train and bus stations and other venues equipped with self-service devices by simply swiping the card. For accommodations, the "five-star card" can be used alone to check in and register at hotels by swiping the card. In terms of communications, it can be used to apply for fixed-line telephones, to register mobile phone accounts and to subscribe to broadband services at telecommunication service outlets. For financial services, the "five-star card" can be used as proof of identity to open accounts, manage finances and conduct other businesses at commercial banks, insurance companies and securities firms. Additionally, the "five-star card" has been integrated into the system for access to all government services through one single portal, enabling holders to enjoy mobile payments, utility bill payments, public transportation and other services via over 30 internet applications such as WeChat, Alipay and Douyin. It is fair to say that the "five-star card" is as convenient and user-friendly as a Chinese resident identity card in public service areas.

To facilitate the renewal of the "five-star card," we have implemented a service that facilitates the submission of application by card holders at service locations near their permanent residences. In the next step, we will work with relevant authorities to further expand the social application functions of the "five-star card," making it even more convenient and user-friendly. Thank you!

CCTV:

With the rapid development of China's economy and the continuous expansion of its opening-up policy, Chinese ports are experiencing a significant surge in the volume and speed of inbound and outbound traffic for both people and goods. Given this situation, what measures has the NIA taken to ensure the security and smooth functioning of ports nationwide? What achievements have been made?

Liu Haitao:

Thank you for your questions. I'll answer them. According to the NIA, 341 million inbound and outbound trips were made from January to July this year, an increase of 62.34% year on year. Additionally, 18.176 million cross-border trips were made by various modes of transport, including aircraft, vehicles, ships and trains, representing a 52.09% year-on-year increase. These figures demonstrate that an open China provides enjoyable travel for passengers and ensures the smooth transport of goods. This smooth flow is closely tied to the immigration administration's policy support.

As for the effectiveness of these policies, I would say they can be encapsulated by the terms "more convenient" and "more efficient."

First, we have more efficiently ensured the smooth flow of industrial and supply chains. We've set up customs clearance "green channels" for major cargo flights at hub airports and implemented priority processing for critical and time-sensitive shipments. We've enacted simplified border procedures for direct round-trip flights and connecting flights. Additionally, we've introduced a one-stop border clearance policy for international passenger and cargo flights on direct round-trip routes entering and exiting the country. For maritime ports, we've adopted time-saving and cost-reducing measures to help businesses, including 10 measures to promote the construction of shipping hubs in the Yangtze River Delta, 16 measures to support shipping enterprises, and a zero-wait policy for inbound international vessels and a zero-delay policy for outbound vessels. Moreover, we have fully digitized border inspection services for matters requiring government approval, with more than 95% of border inspections now processed entirely online. We have introduced "fast channels" at land ports for key cross-border freight vehicles, ensuring immediate inspection upon arrival and expedited customs clearance. As such, 78,000 China-Europe freight train trips have enjoyed immediate inspection upon arrival at border crossings, with an average annual growth rate of 23.4%. The China-Europe Railway Express now delivers vegetables and fruits from Henan and Shandong provinces to Europe 30 days faster than maritime shipping. 

Second, we have streamlined entry and exit procedures at border crossings for greater convenience. As I mentioned previously, the average border inspection time for Chinese citizens has been reduced to 45 seconds. I'd like to share two more data sets that are highly representative. The average clearance time per person at over 2,400 fast lanes in all 227 designated inspection ports for travelers nationwide is less than 15 seconds. As a result, over 1 million inbound and outbound travelers now enjoy efficient and convenient border clearance services every day. The average customs clearance time for vehicles at Hengqin port is no more than 2 minutes. Thanks to the new border inspection model, ports cooperate with each other to implement one-off customs clearance. This promotes the integrated development of Hengqin and Macao. There are a lot of other data sets similar to this. For example, we have implemented facilitation arrangements for border entry and exit for Belt and Road countries in 24 ports, setting up more than 200 special channels. This has enabled 10.66 million inbound and outbound trips by personnel from countries along the Belt and Road in the first half of the year, a 1.6-fold increase compared with the same period last year. Moreover, we've introduced a policy of 24-hour direct transit without border checks this year at nine hub airports: Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Xiamen, Chengdu and Xi'an. Therefore, over 2 million travelers have enjoyed this direct transit service without undergoing border check procedures in the past seven months. 

Going forward, the NIA will continue to actively and prudently advance the institutional opening-up of immigration management. We aim to offer more support for Chinese enterprises, products and personnel venturing abroad while attracting more foreign investment, investors and enterprises. These efforts are designed to serve and promote high-quality development. Thank you. 

Zhinews of Shenzhen Satellite TV:  

With the rapid development of the Guangdong-Hong Kong-Macao Greater Bay Area and the high-quality development of Belt and Road cooperation, Hong Kong and Macao are integrating themselves into China's overall development at an unprecedented scale and depth. In July, the NIA, in accordance with the law, began issuing mainland travel permits to non-Chinese permanent residents of Hong Kong and Macao. What benefits does this new policy offer? How has the permit issuance process progressed so far? Thank you.

Liu Haitao:

You raise a good question. This matter has been receiving a lot of attention online recently. I would like to invite Ms. Peng to answer your question.

Peng Ling:

Thank you for your question. Non-Chinese permanent residents of Hong Kong and Macao participate in and contribute to the development of the two special administrative regions. Granting them with mainland travel permits is a major reform measure that embodies our full and accurate implementation of the One Country, Two Systems policy. It also aligns with the new demands and expectations of the Hong Kong and Macao societies, significantly accelerating institutional openness in the field of entry and exit.

There are advantages for permit holders in contrast to the previous requirement of a passport for travel. First, the permit's five-year validity allows for unlimited travel to and from the mainland, facilitating spontaneous trips. Furthermore, each entry allows for a stay of up to 90 days on the mainland, fully meeting the practical demands of investment negotiations, business collaboration, scientific exchanges and personal visits. Additionally, permit holders benefit from expedited customs clearance, as they are exempt from filling out entry cards and can use fast-track lanes at border inspections, thereby experiencing China's speed and efficiency.

Since the policy took effect on July 10, in just over one month, nearly 30,000 non-Chinese permanent residents of Hong Kong and Macao have applied for permits. Some individuals have already enjoyed the enhanced efficiency and convenience of this streamlined border crossing process on the very day they received their permits.

Looking ahead, we will further explore and expand the practical applications of the One Country, Two Systems policy in the realm of entry and exit strategies. Our goal is to enhance mutual exchanges between the peoples of the mainland, Hong Kong and Macao, continually injecting new impetus into the socioeconomic development of Hong Kong and Macao. Thank you.

China Daily:

Just now, Mr. Liu mentioned that the NIA has facilitated, coordinated and served the introduction of a large number of international talents in various fields such as science, education, culture, health and sports. Could you provide more details on the outcomes achieved so far and outline the future plans in this respect? Thank you.

Liu Jia:

Thank you for your question. General Secretary Xi Jinping pointed out that "to develop our cause well, it is essential to select the best minds of the world." In recent years, based on China's national conditions and the needs of high-quality economic and social development, the NIA has systematically optimized and improved visa, residence, permanent residence, naturalization and other policies and measures, providing strong support and guarantees for international professionals living and working in China.

First, we aim to attract and retain more talent. We have relaxed visa regulations, allowing eligible foreigners to obtain multiple-entry visas valid for up to 10 years at Chinese embassies and consulates abroad. For those unable to secure visas before arrival, entry visas can be issued at ports of entry. In cases where legitimate reasons necessitate frequent international travel, we offer facilities to issue or renew multiple-entry visas. Notably, professionals invited to engage in technical collaborations, economic and trade activities at leading Chinese universities, research institutions and renowned companies, as well as high-level talents and their teams working in China, are eligible for multiple-entry visas valid for two to five years.

Second, we aim to ensure a secure and supportive environment for talent. To facilitate this, we have streamlined and simplified the procedures for international talents working and living in China. In collaboration with relevant departments, we have implemented a "one-stop" service for foreigners applying for work permits and work-type residence permits that allows for simultaneous applications, approvals and issuances. We support leading domestic universities, research institutions and large enterprises in their efforts to recruit international talents. Additionally, those transferred within their organizations across regional boundaries are exempt from the need to reapply for residence permits. Qualified high-level foreign professionals are allowed to hold concurrent positions for innovative and entrepreneurial activities upon registration. Furthermore, we have actively engaged with employers, carefully aligning talent supply with demand, establishing linkage mechanisms and consistently devising strategies to help organizations attract and retain talent.

Finally, we aim to improve the living standards of international talents residing in China. We have issued a new version of the foreign permanent resident ID card, known as the "five-star card," and promoted convenient social applications. We have launched the China Immigration Service Hotline 12367 that provides 24/7 service worldwide, and launched the NIA website covering the six official languages of the United Nations. We have also promoted the construction of immigration service centers and sites, which have greatly improved the quality of life for international talent in China.

Next, we will implement the plan set forth by the third plenary session of the 20th CPC Central Committee to "explore avenues for establishing an immigration system for highly-skilled personnel." We will actively collaborate with relevant departments to enhance policy research and refine system design, with the aim of providing highly-skilled personnel working and living in China with more comprehensive, convenient and efficient immigration management policies. Thank you.

New Yellow River App:

Could you elaborate on the new characteristics and changes in illegal land border crossings and smuggling at ports in recent years? Additionally, what measures has the NIA taken to ensure the safety and stability of the nation's borders and the normal order of exit and entry, and what results have been achieved? Thank you.

Liu Haitao:

Thank you for your question. I will address this. In recent years, with changes in the international landscape and regional geopolitical situations, illegal activities affecting border management have also exhibited new trends and characteristics. In the field of immigration management, this is primarily reflected in two aspects: First, in border areas, illegal exits of Chinese nationals have been curbed, with the number of apprehended individuals decreasing by 30% compared to last year. However, due to various factors, there has been an increase in the number of foreign nationals illegally entering for work through cross-border smuggling. We have been closely monitoring this. Second, at open ports, domestic and international smuggling gangs have been collaborating. They recruit individuals, falsify invitation letters, defraud social security payments and mask would-be smugglers as businesspeople or qualified company employees to obtain travel documents. These gangs then organize them to engage in cross-border criminal activities abroad. There remains a notable phenomenon of criminal groups organizing mainland residents to travel via Hong Kong and Macao to countries in East Asia, Southeast Asia, Europe, and Central and South America for transit smuggling.

To ensure the safety and stability of national borders and the normal order of entry and exit, the NIA has coordinated and guided immigration management institutions nationwide to deepen the integrated approach of "strike, investigate, manage, treat and coordinate" in combating all forms of illegal activities affecting national border management.

We have continuously carried out special crackdown operations. As I mentioned earlier, we have been conducting the "Mongoose" operation for four consecutive years. The mongoose, a natural enemy of snakes, symbolizes our operation. Relying on the "Mongoose" initiative, we have strengthened supervision over major and serious cases, and centrally deployed cluster campaigns. This approach has enabled concentrated analysis of similar cases, collaborative investigation of cross-regional cases, and comprehensive strikes against entire criminal networks. We have successfully severed numerous smuggling routes and effectively dismantled many illegal profit chains, effectively deterring the audacity of criminals both domestically and abroad.

We have enhanced targeted inspections at border ports. In fulfilling our statutory responsibilities for border inspections, we promptly analyze trends in cross-border crimes such as smuggling and dynamically adjust targeted inspection measures to rigorously monitor and prevent illegal entry and exit activities.

We have strengthened border patrols and controls. We have improved the three-dimensional border defense system by leveraging physical, technological and human defenses. This includes effective management of mountain passes, trails and ferry points that connect to external areas, further reinforcing the border defense line.

We have also implemented source management in critical areas. By integrating the dual strategies of enforcement and governance, we have integrated anti-smuggling efforts into grassroots comprehensive governance. We have conducted concentrated rectification activities in these areas, closing down non-compliant and illegal intermediary agencies and investigating non-compliant and illegal businesses. As a result, smuggling in critical areas has been effectively curbed.

We have continuously deepened international law enforcement cooperation, strengthening collaboration with relevant countries and regions. We have improved mechanisms for sharing intelligence, jointly investigating and handling cases, and pursuing and capturing fugitives. Efforts in the overseas "Mongoose" operation have been ramped up, resolutely squeezing the space for criminals abroad to evade justice.

Since this year, more than 22,000 illegal and criminal cases that obstruct border administrations have been solved nationwide, resulting in the arrest of over 39,000 criminal suspects. More than 6,000 illegal immigrants have been apprehended and 103 fugitive targets who had fled abroad have been successfully captured in cooperation with relevant countries. The effectiveness of these actions in deterring and combating such crimes continues to grow. Moving forward, the NIA will remain focused on the overall situation of national political security as well as economic and social development. We will unwaveringly apply a holistic approach to national security. With higher standards, more detailed planning and more concrete measures, we will maintain a strong and sustained crackdown on various crimes that hinder national (border) security. Our goal is to fully safeguard national political security, border stability and the proper order of entry and exit. Thank you!

21st Century Business Herald:

In recent years, the NIA has released a series of policies to facilitate personnel exchange between mainland and Hong Kong, Macao and Taiwan. What are the policies' effects? What future deployment and arrangements can we expect? Thank you. 

Peng Ling: 

Thank you for your questions. In recent years, we have continued to innovate policy provisions and have rolled out measures that facilitate mainland citizens' travel to and from Hong Kong and Macao. First, in promoting the movement of talent, we have piloted the issuing of a "talent visa" in Beijing, Shanghai and the Guangdong-Hong Kong-Macao Greater Bay Area for six professional categories in the fields of science, education, culture and health. So far, over 23,000 high-level talents have been issued these visas, allowing them to make unlimited trips to Hong Kong and Macao for periods of 1 to 5 years. Each stay can last up to 30 days, providing ample time for research exchanges and academic discussions, which significantly facilitates the free, convenient and efficient flow of talent and technology. In promoting economic and trade exchanges, business personnel can apply for business permits conveniently at over 4,000 entry-exit service windows across China. The duration of each stay in Hong Kong and Macao has been extended from 7 to 14 days. In advancing the development of the tourism industry, we have added 10 new cities, including Xi'an and Qingdao, as eligible for "individual visit schemes," increasing the total number of included cities to 59. In addition, we have allowed tourist groups to make multiple trips between Macao and Hengqin via the Hengqin Port, supporting the integrated development of tourism between Hengqin and Macao. 

At the same time, we have been continuing to introduce entry and exit policies and measures that facilitate Hong Kong, Macao and Taiwan residents' travel to and from the mainland. In serving Hong Kong and Macao residents, we have introduced policy allowing Hong Kong and Macao residents to replace and renew their mainland travel permits on the mainland, ending over 40 years of requiring residents to return to Hong Kong or Macao to complete these processes. Like mainland residents, they can now enjoy the convenience of applying in a single visit at a nearby service window and receiving the permit through postal delivery. So far, 312,000 people have benefited from this service. In serving Taiwan residents, we have focused on addressing their needs and have established specialized windows for Taiwan compatriots and companies, as well as entry-exit service stations. Since the beginning of this year, we have issued 798,000 certificates to Taiwan residents, a 21.6% year-on-year increase. We fully support Fujian province in building a demonstration zone for the integrated development across the Straits, rolling out 10 convenient measures including online application for the mainland travel permits for Taiwan residents. They can also apply for longer travel permits upon arrival or entrust travel agencies to make the application and then retrieve the documents upon arrival at the port of entry. These measures enable Taiwan compatriots to enjoy the benefits of integrated development and kinship between Fujian and Taiwan. The number of Taiwan residents applying for residency in Fujian has now exceeded the total of the previous 10 years. In addition, we have established an ID verification service platform for entry-exit documents to better serve Hong Kong, Macao and Taiwan residents living and working on the mainland. Together with 17 other departments, including the Ministry of Transport and the People's Bank of China, we have actively promoted the convenient use of the mainland travel permits for Hong Kong and Macao residents and the mainland travel permits for Taiwan residents in areas such as government services and public services on the mainland, ensuring that they can handle affairs smoothly and travel with peace of mind with just one certificate. So far, we have provided free, real-time identity verification services to 110 million people.

Looking ahead, we will continue to deepen reform and innovation in entry and exit administration services, better maintain the long-term prosperity and stability of Hong Kong and Macao, and actively promote the integrated development across the Straits. Thank you!

Xing Huina:

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

China News Service:

As the number of inbound and outbound travelers continues to rise, we would like to know what assistance the immigration authorities provide for them when they encounter problems and difficulties during entry and exit activities. Thank you.

Liu Jia:

Thank you for your question. Pressing difficulties and problems that concern inbound and outbound travelers the most are also the focus and responsibility of immigration authorities. China's 12367 immigration service platform, launched on April 8, 2021, has become a "customer service center" to help solve these difficulties and problems.

Why put it this way? First of all, the 12367 service platform is "capable of answering" all inquiries, and it always responds whenever there is a question. As the first government hotline in China that provides direct, bilingual human services in Chinese and English to both domestic and overseas callers, it has received and handled in the past three years of operation a total of 12.768 million calls with regard to immigration-related service consultation, suggestions and advice. The service covers 147 countries and regions around the world. Moreover, the 12367 service platform is capable of "handling problems", as it can offer timely and effective access to services. Besides the hotline, the NIA's official website, "National Immigration Administration Government Service Platform 12367" mobile app as well as WeChat and Alipay mini programs also have access to the functions of the "12367 online service," providing 24/7 bilingual human service or intelligent real-time response services in Chinese and English, truly offering a service that is always online, dutiful and continuous.

In addition to 12367, we also have launched a government website in the six official U.N. languages of Chinese, English, Russian, French, Spanish and Arabic, and offer functions such as guidance on immigration management, and office information query, making facilitations for Chinese and foreign personnel to inquire about China's immigration management services, keep abreast of relevant laws and regulations, and obtain other information they need. Since the website went online, the number of visits in total has been over 1.58 billion.

In the next step, we will continue to optimize the 12367 service platform and multilingual versions of our website, expand channels and functions of services, and make greater efforts to provide more efficient and convenient services to facilitate the entry and exit of personnel. Thank you!

Xing Huina:

Last question, please.

Nanfang Metropolis Daily:

The resolution adopted at the third plenary session of the 20th CPC Central Committee said that China will pursue high-standard opening up. It also stressed that we will improve relevant measures to make it more convenient for people from outside the mainland to live, receive medical services and make payments on the mainland. What arrangements have been made by the National Immigration Administration with regard to that? Thank you.

Liu Haitao:

Thank you for your question. I will take it. The third plenary session of the 20th CPC Central Committee adopted the Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization, putting forward specific requirements for improving relevant measures to make it more convenient for people from outside the mainland to live on the mainland, improving the support mechanisms for recruiting talent from overseas, and exploring avenues for establishing an immigration system for highly-skilled personnel, thus sending a clear signal of expanding high-standard opening up. Immigration management work is at the forefront of opening up as well as at the intersection between domestic and international dual circulation. To thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee and safeguard high-quality development, it is critical to steadily expand institutional opening up on the basis of ensuring security. We will take the revision of the Exit and Entry Administration Law of the People's Republic of China as an opportunity, accelerating the improvement of the immigration management institution that has comparative advantages and is aligned with international economic and trade rules, so as to provide a sound immigration management environment for fostering a new development paradigm, accelerating the development of new quality productive forces and promoting high-quality development.

In combination with the functions of immigration management, I believe that we can make great progress in the following aspects.

First, we will further support the work related to attracting, gathering and keeping talent. In combination with the characteristics of cross-border flow of talent and the developmental law of talent cultivation, we will focus on key links such as facilitating the entry and exit of highly-skilled personnel, their stay and residency, permanent residency, as well as naturalization as Chinese nationals and restoration of Chinese nationality, and vigorously attract overseas high-level talent to pursue their development, business and other innovative ventures in China, enhancing the confidence of global talent in their long-term development in China.

Second, we will further advance high-standard opening up. We will contribute to the development of new institutions for a higher-standard open economy. We will introduce new policies for immigration management to serve major national strategies, minimize social costs and boost the vitality and creativity of market entities. We will empower the development of new quality productive forces, make the institutional supply of the immigration management better adapted to the development of strategic emerging industries and future industries, improve the system of immigration management policies and regulations, making them conducive to the smooth flow of various quality production factors, and propel immigration management to better integrate into and serve the modern economic system. We will facilitate personnel exchange between China and other countries, continuing to optimize the visa-free transit policy, regional visa-free entry policy and port visa policy, and thus making it easier for foreign nationals to work, study and travel in China as well as promoting high-standard opening up through institutional opening up in the area of immigration management.

Third, we will further improve government services for immigration management. We will make administrative approval more efficient. Just now, my two colleagues also shared some information. In the next step, we will make more frequently-used services be accessible at one stop, near people's homes, online and at one time. We will facilitate customs clearance, carry out reservations for rapid customs clearance of cross-border vehicles, promote the mode for fast vehicle customs clearance as well as the mode for mobile inspection and release, continue to explore application of innovative facial recognition and other technologies in the field of border inspection and customs clearance, strengthen the construction of new inspection infrastructure and cutting-edge equipment, further optimize the inspection process, and improve the efficiency of customs clearance, so as to ensure the efficient and smooth flows of personnel, commodities and other factors of production. We will refine social integration services, expand convenient application scenarios for entry and exit documentation, accelerate the multi-channel, multilingual and intelligent development of the 12367 service platform, create an "Internet+" government service brand that is globally-oriented, has complete functions and enjoys high public satisfaction, and make greater effort to remove obstacles and chokepoints in various services for overseas personnel that are traveling, working and living in China.

Thank you!

Xing Huina:

Today's briefing is hereby concluded. Thank you to the three speakers and our friends from the media. Goodbye everyone.

Translated and edited by Xu Xiaoxuan, Wang Wei, Liu Sitong, Wang Qian, Liu Caiyi, Wang Yiming, Wang Ziteng, Gong Yingchun, Huang Shan, Liao Jiaxin, Li Huiru, Yang Chuanli, Liu Qiang, Liu Jianing, Xu Kailin, Zhang Junmian, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Pu Chun, vice minister of the State Administration for Market Regulation (SAMR) and administrator of the National Certification and Accreditation Administration

Mr. Wang Guowei, deputy director general of the Department of Comprehensive Planning of the SAMR

Mr. Zhou Zhigao, director general of the Department of Competition Policy Coordination of the SAMR

Mr. Liu Sanjiang, director general of the Bureau of Quality Development of the SAMR

Chairperson:

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

Date:

Aug. 16, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Pu Chun, vice minister of the State Administration for Market Regulation (SAMR) and administrator of the National Certification and Accreditation Administration, to brief you on relevant developments and to take your questions. Also present today are Mr. Wang Guowei, deputy director general of the Department of Comprehensive Planning of the SAMR; Mr. Zhou Zhigao, director general of the Department of Competition Policy Coordination of the SAMR; and Mr. Liu Sanjiang, director general of the Bureau of Quality Development of the SAMR.

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

Pu Chun:

Thank you. Ladies and gentlemen, good morning. I'm very glad to attend this press conference with my colleagues, and to speak with you about how market regulation has supported high-quality development in recent years. 

The 20th National Congress of the Communist Party of China (CPC) drew a grand blueprint for building a modern socialist country in all respects, with high-quality development being the top priority in this endeavor. In recent years, market regulatory authorities have adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and fully and faithfully applied the new development philosophy on all fronts. They have better coordinated efficiency and fairness, vitality and order, as well as development and security, striving to fulfill their role in supporting overall high-quality development. The achievements are mainly reflected in five aspects:

First, market regulation systems and rules have consistently been improved. We have focused on refining a unified market regulatory framework. For example, we have facilitated introducing and implementing the regulation on the registration management of market entities as well as the revised Company Law and its supporting rules. We have amended the Anti-Monopoly Law, pushed for the introduction of regulations for fair competition reviews, and advanced the revision of interim regulations on the disclosure of information regarding companies' practices. Additionally, we have issued an interim regulation against unfair competition in cyberspace. These efforts have provided strong support for constantly improving the systems underpinning the market economy.

Second, the development quality of business entities has been continuously increased. We have worked to unleash the internal driving forces and creativity of various business entities, establishing and refining an evaluation system for their development quality. We have launched 22 measures to promote the private economy's development, and promoted the practice of "getting one thing done efficiently" in areas such as business deregistration. We have provided precise and effective support for the development of self-employed individuals. In 2023, the number of registered business entities nationwide reached 184 million, with a year-on-year increase of 0.69% in business activity, and the average lifespan of exiting enterprises was extended by 0.64 years.

Third, the fair competitive market environment has been further optimized. We have thoroughly implemented policies for fair competition and continuously enhanced the rigid restraints of fair competition review. We have strengthened regulation and law enforcement against monopolies and unfair competition, effectively ensuring fair market competition. Since the implementation of the mechanisms for fair competition, a total of 1.62 million policies and measures have been reviewed nationwide, abolishing or revising 93,000 policies and measures that eliminate or limit competition. Since the beginning of this year, we have investigated and prosecuted, in accordance with the law, four cases of monopoly agreements and market dominance abuse, 6,076 cases of unfair competition, and 10 cases of abusing administrative power to exclude or restrict competition. After the implementation of revised rules on declaration standards regarding the concentration of business operators, the number of declarations decreased by 13% year on year, making business investments and mergers more convenient. Surveys show that over 80% of enterprises are satisfied with the professionalism of competition-related law enforcement.

Fourth, stronger guidance and support on quality and standards have been provided. We have accelerated improvements to quality infrastructure to adapt to the modernized industrial system. Efforts have been focused on advancing key initiatives, including a special campaign to strengthen supply chains through quality improvement and signature projects to stabilize chains through standardization. We also formulated an action plan to promote equipment renewal and consumer goods trade-ins by improving standards. Since this year, 628 quality improvement projects have been launched nationwide to strengthen supply chains. We've also revised and newly formulated 84 key national standards. Additionally, we've announced 112 national standards in areas such as energy efficiency, home appliances and gas equipment. We've also established and refined quality certification systems for key industries and are accelerating the opening up of high-level certification and accreditation systems to support high-quality development. To date, 3.91 million quality certification certificates have been issued, covering over 1 million organizations. China has joined 21 international conformity assessment organizations and has signed 15 multilateral mutual recognition agreements and 128 bilateral cooperation and mutual recognition agreements.

Fifth, progress has been made in comprehensive market order governance. We've focused on regulating the use of discretionary administrative powers in market affairs to improve regulation-based law enforcement. The consumer environment has been further optimized by fully implementing a public complaint information disclosure system and improving recall management systems. We've developed and strengthened a market regulation safety responsibility system that emphasizes increasing efforts at the primary and grassroots levels to ensure tangible, real-world results. This approach has further enhanced our risk control mechanisms across key areas, including safety in food, drugs, industrial products and special equipment. So far this year, market regulation authorities at all levels have handled 315,000 cases, resulting in fines and confiscations totaling 1.7 billion yuan ($240 million). The national 12315 hotline platform has seen a 33.7% year-on-year increase in complaints, reports, and inquiries, recovering 2.04 billion yuan in economic losses for consumers. There have also been 150 automobile recalls involving 6.678 million vehicles and 485 consumer product recalls involving 3.129 million items.

The present and the near future constitute a critical period for our endeavor to build a great country and move toward national rejuvenation on all fronts through Chinese modernization. We will thoroughly implement the guiding principles of the third plenary session of the 20th CPC Central Committee. Our efforts will focus on major reform tasks like building a high-standard socialist market economy, promoting high-quality economic development, building a unified national market, refining the systems underpinning the market economy, improving the institutions and mechanisms for fostering new quality productive forces in line with local conditions, pushing forward the innovative development of the platform economy while improving the system for its routine regulation, and enhancing the overall market regulation capabilities. These reforms will contribute our part to China's modernization through high-quality development.

That is all for my introduction. Now, my colleagues and I will be pleased to answer your questions. Thank you.

Xing Huina:

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

Shenzhen Satellite TV:

An increasing number of people are paying attention to the credibility of business entities. Could you update us on the progress of building a credibility system for businesses? Thank you.

Pu Chun:

In recent years, market regulators have accelerated the development of a business credibility system. This includes establishing credibility records, publicizing credit information, promoting incentives for trustworthy behavior, penalizing trust breaches, and implementing categorized credit risk management.

Since its launch, the National Enterprise Credit Information Publicity System has averaged 131 million visits and over 16 million inquiries daily. Consumers and market participants can easily access comprehensive information about a business's operations and credibility, enabling them to make informed judgments. Information disclosure is now widely seen as a supervisory tool, demonstrating how credit oversight can facilitate public governance and support high-quality business development.

An increasing number of businesses are prioritizing their credit status. On the one hand, the SAMR has intensified its three-year campaign to improve business credit, focusing on laying a solid foundation, empowering leading market players, improving services, and enhancing overall credit levels. On the other hand, we are gradually refining the joint work system for credit restoration, ensuring that information on restoration outcomes is shared and mutually recognized and addressing redundant restoration processes.

Besides, we have continued to enrich our credit supervision toolbox and have implemented inclusive and prudential regulations. We have implemented, across the board, the classification management for enterprise credit risks, with classification results being regularly used in practices such as the random selection of inspectors and inspection targets and the prompt release of results. This random selection method has led to a 51.9% increase in the number of issues detected. Enterprises' credit information will be shared in various ways to all departments. By the end of July, 11.331 billion pieces of data had been directly provided and 2.032 billion interface call services has been offered, supporting coordinated supervision. We have explored sharing credit supervision data with platform enterprises, supporting Zhejiang province and Haidian district of Beijing in sharing such data with platform enterprises on a trial basis. In places like Shenzhen and Hangzhou, pilot work has been done to check information of individual businesses via WeChat and Alipay platforms. All these have contributed to the exploration of enhancing joint governance with platform enterprises. We have promoted the joint construction of credit initiatives in the Beijing-Tianjin-Hebei region and Yangtze River Delta Region, as well as initiated the joint construction of a credit system in the Guangdong-Hong Kong-Macao Greater Bay Area, empowering regional coordinated development and serving national major strategies. 

Going forward, the SAMR will follow the principle of "improving the social credit system and related oversight institutions" proposed by the third plenary session of the 20th CPC Central Committee, continuing to focus on the central task of building a market entities credit system. With enhancing enterprise credit as the main task, information collection and publication as the foundation, credit constraint and discipline as the key, dual random selection supervision model as the lever and credit risk classification as the basis, we will continue to leverage the role of credit to empower high-quality development. By doing so, the improvement of the credit environment will drive the improvement of the market environment, business environment and development environment. Thank you. 

People's Daily:

This year the State Council has launched an initiative to optimize administrative services and promote one-stop government services. What has the SAMR done to implement the initiative by the State Council? 

Pu Chun:

I'll ask my colleague, Wang Guowei, to respond to this question.

Wang Guowei:

Happy to answer your question. Since this year, according to the arrangement of the State Council, SAMR's work with relevant departments to promote one-stop government services has been with three services frequently encountered by residents and involving various departments. The three services are business information changes, business deregistration and opening a restaurant. 

What are one-stop government services? Previously, what seemed like a single matter to enterprises and residents actually involved multiple departments, requiring applicants to navigate various procedures step by step, which led to repeated visits to departments. Each department designed its own rules, with some departments requiring the completion of procedures in other departments before the applicants could proceed, resulting in reciprocal requirements and additional trips for applicants. This problem wasn't unheard of in the past, causing great inconvenience to residents. How do one-stop government services solve the problem? In short, it requires coordinated innovation and deep integration across the three aspects of systems, operations and technology.

First is system innovation. We need to shift from management rules that were designed primarily for government efficiency to rules that prioritize convenience for the public. For instance, we should reduce or eliminate the number of required documents wherever possible, so that applicants only need to visit one department.

Second is business process innovation. The handling processes should move from a sequential approach where one step follows another to a parallel approach. For example, with items that involve various departments, tasks are responded to, linked, circulated and handled through the coordination of these departments. This will make things much more convenient for enterprises.

Third is technological innovation. Online government services should evolve from simple passive reception to diversified scenario services based on the needs of the public. To this end, we have promoted interconnectivity across regions, departments and administrative levels. By leveraging digital technology, we have created an accessible, smart and convenient online government service system, where the public can complete their tasks entirely online.

Our innovative reforms in three key areas have yielded significant results, as evidenced by the following data. For enterprise information changes, we reduced procedures from seven to one, eliminated the need for 13 documents, and cut approval time by six working days. For enterprise deregistration, we reduced the number of procedures from 10 to four. For ordinary deregistration, we cut processing time from a minimum of 70 days to just 46 days, including a statutory notice period of 45 days, which is unlikely to be shortened or skipped because the legitimate rights and interests of creditors and other stakeholders need protection. For opening catering businesses, we reduced processing time from 37 to 15 working days and eliminated 14 previously required documents. These improvements demonstrate that our reforms have streamlined administrative procedures for enterprises and individuals, cutting time and costs while optimizing the whole process. As a result, we are now more confident in better addressing public concerns by upholding the spirit of reform and implementing related measures.

Looking ahead, the SAMR will follow the unified arrangements of the State Council, continue to deepen reform in one-stop government services to achieve new outcomes and improve the quality and efficiency of government services to benefit both enterprises and individuals. Thank you.

Cover News:

The resolution adopted at the third plenary session of the 20th CPC Central Committee emphasizes the need to enhance the binding force of fair competition review and to take stronger action against monopolies and unfair competition. What work has been done by the SAMR in this regard? Thank you.

Pu Chun:

My colleague Mr. Zhou will answer this question. 

Zhou Zhigao:

Fair competition is the cornerstone of a market economy and provides important support for high-quality development. In recent years, the SAMR has focused on high-quality development as our top priority. We have consistently worked to regulate market competition, ensuring fair competition and maintaining market order. Our work has mainly been in three aspects:

First, we have deepened anti-monopoly regulation and enforcement in key areas. Over the past two years, we have carried out special anti-monopoly enforcement actions in sectors related to people's well-being, enhancing regulation and enforcement in the fields of medicine, building materials, automobiles, and utilities. Since 2022, we have investigated and dealt with 60 cases involving monopoly agreements and abuses of dominant market positions. These actions have resulted in forfeitures exceeding 2.5 billion yuan, contributing to a steady improvement in market competition order. Meanwhile, we deepened regular anti-monopoly regulation in the digital economy and other areas. We unconditionally approved 48 notifications of platform operator concentrations in accordance with the law. We have fully leveraged major cases as cautionary examples to encourage business operators to sign industry-specific self-discipline pacts, issued warnings against monopolistic practices as per the law, urged and guided enterprises involved in various cases to restructure and meet compliance requirements, aiming to continuously optimize order across multiple industries.

Second, we have made efforts to conduct anti-monopoly reviews of cases of operator concentration. Since 2022, we have investigated and closed more than 1,900 such cases, conditionally approved 10, including Simcere's acquisition of Tobishi and Wanhua Chemical's acquisition of Yantai Juli Fine Chemical, and legally lifted the restrictive conditions over the case of Marubeni Corporation buying the entire stake of Gavilon Holdings, boosting enterprises' vitality in investment and mergers. Meanwhile, we reviewed simple cases and other cases separately, authorized market regulation departments in Beijing and four other provincial-level regions to conduct anti-monopoly reviews of some simple cases of operator concentration, and launched online systems to review these cases, thus improving the quality and efficiency of case reviews.

Third, we have supported and guided operators to enhance anti-monopoly compliance. This April, the Anti-Monopoly and Anti-Unfair Competition Commission of the State Council revised and issued anti-monopoly compliance guidance for operators, detailing specific monopoly-related compliance risks, and established an incentive system for anti-monopoly compliance. Meanwhile, we released anti-monopoly compliance guidance for operator concentration and hosted a series of lectures on anti-monopoly compliance, aiming to support and guide operators in enhancing compliance management. We are intensifying efforts to establish national standards for fair competition compliance management among operators. We aim to create a collaborative governance model combining voluntary enterprise compliance, effective government guidance, and widespread public support.

As you just mentioned, the third plenary session of the 20th CPC Central Committee laid out explicit requirements for intensifying anti-monopoly measures. Moving forward, the SAMR will continue to enhance and refine its supervision and enforcement of these measures. Our goal is to better maintain market order, address market failures and ensure an environment for fair competition that bolsters the internal driving forces and creativity of the whole of society. By championing fair competition, we aim to promote high-quality development yielding even more substantial outcomes. Thank you.

CCTV:

The third plenary session of the 20th CPC Central Committee emphasized there will be no irresolution about encouraging, supporting, and guiding non-public sector development. Self-employed individuals are a vital component of this sector. How can the SAMR further promote the development of these individuals and enable them to thrive and contribute more significantly? Thank you.

Pu Chun:

Thank you for your interest in and concern for this group. As of the end of this June, the country had 125 million individuals registered as self-employed, accounting for 66.9% of all business entities. This significant number highlights their active role in stabilizing employment, fostering development and delivering real benefits to the people.

As the supportive "parental home" to these businesses, the market regulatory body will fully leverage their close ties with them. In collaboration with relevant departments, we aim to boost their internal drive and innovative potential through adopting a combination of measures, boosting high-quality development.

Our commitment includes improving mechanisms and measures. Currently, we are conducting research and working out a regulation to promote development and standardize registration management of self-employed individuals. This regulation will specify key initiatives for market regulators to boost the development of these individuals, effectively guiding registration authorities at various levels. We aim to address pivotal challenges such as the transition from individuals to corporate entities, succession of management rights and market exit strategies, thereby facilitating sustainable growth for these businesses.

We will continue strengthening our efforts in promoting the implementation of policies. We are advancing precise and tiered support for individual businesses categorized into three development stages: subsistence, growth and advanced development. This approach provides tailored assistance measures that meet the unique needs of each stage. Additionally, initiatives to recognize and cultivate renowned, distinctive, high-quality or emerging individual businesses are underway, which are expected to set industrial benchmarks and elevate sector standards comprehensively. By the end of this year, we plan to consolidate categorized data to establish a comprehensive national directory of self-employed individuals, ensuring clarity and precision in support initiatives.

We will continue strengthening our efforts in innovating service measures. This September, the SAMR, together with 13 other departments, will host the third National Month of Service for Individual Business Owners, under the theme of "Categorized Assistance, Energizing Vitality, Serving Development." This event will include 11 activities focusing on six themes from promotional training to employment matchmaking, boosting consumer convenience and financial support tailored to ensure the policy implementation and elevate service standards. We have also established a nationwide network for the development of individual businesses, designed to align resources from local governments, industry associations, internet platforms and financial institutions and meet the needs of individual businesses in terms of policy consultation, processing operation permit and business license, financial and tax management, recruitment and employment, and skill training. This network aims to facilitate a supportive ecosystem offering comprehensive, market-oriented, regular services tailored to the nuanced needs of this vibrant sector.

21st Century Business Herald:

Quality infrastructure is referred to as "the foundation of the foundation" and is an important technological provision for promoting high-quality development. What work has been done by the SAMR to strengthen the construction of quality infrastructure? How about progress?

Pu Chun:

My colleague Mr. Liu will respond to these questions. 

Liu Sanjiang:

Building high-level quality infrastructure is an important arrangement made in The Outline for Improving the Overall Quality of China's Economy. Here, I would like to briefly introduce the progress that the administration of market regulation has made in building high-level quality infrastructure.

In terms of optimizing management, we have been committed to building an efficient and authoritative national quality infrastructure management system. We have optimized the dual structure of government standards and market standards by advancing the reform and innovation of the standardized management, with a focus on stimulating the vitality of the market to formulate standards independently. Data shows that the total number of social organization standards increased by 45.3% from 2022 to 2023. With regard to the reform on measurement systems, we have launched pilot reforms to diversify measurement instrument certification, improving the management mode of national measurement technical specifications and advancing the construction of a modern and advanced national measurement system. At the same time, we have improved the quality certification management system, deepened the market-oriented reform of inspection and testing institutions, and strengthened industry supervision. As of the end of 2023, there are over 34,000 qualified private inspection and testing institutions in China. Over the decade, the proportion of private inspection and testing institutions in the total number of institutions has doubled, accounting for 63.47% of the total number of institutions in the industry.

In terms of capacity building, China's internationally recognized calibration and measurement capabilities have reached 1,879, ranking among the top in the world. We have established 202 national measurement benchmarks and issued 2,056 national measurement technical specifications. At present, we have issued more than 45,000 national standards and built a new standard system with Chinese characteristics, realizing the full coverage of primary, secondary and tertiary industries and social undertakings. The conversion rate of international standards has surpassed 83%. Concerning certification and accreditation of inspection and testing, China has led the world in the number of authorized certificates and certified organizations for many years. There are 17,870 accredited conformity assessment bodies and more than 54,000 qualified inspection and testing institutions, with an annual revenue of over 470 billion yuan, accounting for about 25% of the world's total. China has become the most dynamic and efficient market in the world. In addition, we have organized and carried out more than 200 inspection and testing capability verification and interlaboratory comparisons in various fields every year, continuously verifying and improving the technical capabilities of inspection and testing institutions.

In terms of improving service efficiency, we have carried out a number of actions for quality infrastructure assistance, such as the program on providing measurement services for small and medium-sized enterprises, a special action on benchmarking and compliance, and the action on certification and enhancement of quality management system for micro and small businesses, so as to promote the continuous release of service efficiency for quality infrastructure in different fields and industries. Among them, the action on certification and enhancement of quality management system for micro and small businesses has provided 32 billion yuan of financial credit support, such as loans for certified micro and small businesses, and nearly 40 million yuan of certification fees have been reduced and exempted. In particular, the administration for market regulation has also been promoting the "one-stop" services of quality infrastructure and has established 1,450 service stations nationwide. A number of typical service models that can be replicated and promoted have emerged, which have played an important role in strengthening the competitiveness of micro and small businesses as well as promoting the high-quality development of regions and industries.

Next, we will continue to promote the upgrading of quality infrastructure and improve its efficiency, carry out monitoring and comprehensive evaluation of the operation of quality infrastructure, innovate the integrated and collaborative model of quality infrastructure and continue to enhance the development of "one-stop" services for quality infrastructure, so as to provide more solid and strong support on quality to promote high-quality development. Thank you.

Hongxing News:

The third plenary session of the 20th CPC Central Committee proposed to build a unified national market, which would require breaking up various secluded small markets and their internal circulation. What measures have been adopted by the administration for market regulation to break up local protectionism and market segmentation? Thank you.

Pu Chun:

My colleague, Mr. Zhou, will answer this question.

Zhou Zhigao:

Thank you for your question. Just as you mentioned, breaking up local protectionism and market segmentation is of great significance to accelerate the construction of a unified national market. In recent years, the administration for market regulation has addressed both the symptoms and root causes, and has attached equal importance to efforts in both establishing new systems and abolishing old ones, working resolutely to break various forms of local protectionism and market segmentation with positive progress being achieved.

First, we have improved the mechanisms for fair competition with higher standards and have consolidated the foundational rules of law for building a unified national market. Building a unified national market requires comprehensive and unified mechanisms for fair competition. In June 2022, China completed the first amendment to the Anti-Monopoly Law after 15 years since its introduction, establishing a foundational role for competition policies from the legal perspective. In January this year, the State Council revised and raised the declaration thresholds for concentration of undertakings, facilitating investment, mergers and acquisitions of enterprises. On Aug. 1, the Regulations for Fair Competition Reviews officially came into effect and put forward specific requirements with 19 prohibitions from four aspects, preventing the introduction of policies and measures that would exclude or impede competition. The formulation and revision of these laws and regulations has laid a solid institutional groundwork for eliminating local protectionism and speeding up the construction of a unified national market.

Second, we further enhanced supervision and law enforcement, regulating improper administrative interventions in market competition. Since 2022, we have focused on public utilities and other key fields and strengthened law enforcement to prevent and stop the abuse of administrative power that excludes and stifles competition. So far, we've investigated and resolved 122 cases of administrative monopolies. In addition, we began reviewing and abolishing policies and measures that hinder the development of a unified national market and fair competition. We've fully implemented a fair competition review system to ensure institutions serve as a rigid constraint. We addressed numerous improper actions that restricted trade, impeded the free flow of commodities and factors of production, or excluded and restricted non-local businesses, aiming to eradicate closed "small markets" and fragmented "minor cycles."

Third, we bolstered public support for fair competition, encouraging all stakeholders to safeguard and promote it. Since 2022, we have organized an annual publicity week for China's fair competition policies with the theme "Unified National Market, Fair Competition for the Future." We have published annual reports on anti-monopoly law enforcement and carried out publicity activities to introduce fair competition laws and policies to government organs, Party schools, and enterprises. We've also intensified publicity and training efforts, vigorously promoting a culture of fair competition. I'd like to inform all our media friends that this year's publicity week for fair competition policies will kick off in September, and we welcome your support.

The third plenary session of the 20th CPC Central Committee made important deployments on building a unified national market. It proposed that we enhance the binding force of fair competition review, and review and abolish regulations and practices that impede the development of a unified national market and fair competition. Moving forward, the SAMR will thoroughly implement the guiding principles of the session and enhance the intensity and effectiveness of regulating improper administrative interventions in market competition, aiming to create a fairer and more vigorous environment for all business entities. Thank you.

Xinhua News Agency:

A series of trade-in policies have been introduced since the beginning of this year. The SAMR, alongside six other departments, also rolled out specific measures to facilitate and encourage equipment upgrades and consumer goods trade-ins. Could you share the progress made on these efforts? Thank you.

Pu Chun:

Thanks for your question. To implement the Action Plan for Promoting Large-scale Equipment Renewals and Trade-ins of Consumer Goods released by the State Council, the SAMR and six other departments have issued specific measures to encourage equipment renewals and consumer goods trade-ins by enhancing standards. We aim to develop or revise 294 key national standards by the end of 2025, with 129 slated for completion in 2024 and 165 in 2025. Through the development and implementation of these standards, coupled with policy support, we will facilitate the renewal of equipment and consumer goods trade-ins.

Since the launch of the standards-upgrading campaign, the SAMR has closely coordinated with relevant departments of the State Council to establish detailed working records, optimize processes, schedule work regularly, and assess and report progress. This approach has connected all stages of standards setting and accelerated the formulation and implementation of standards. At present, all 294 key national standards have been approved, with 55 already released, encompassing energy consumption, energy efficiency, pollutant emissions, production safety, electric vehicles, household appliances, household goods, civilian drones and other fields, playing a key role in promoting equipment upgrades and trade-ins of consumer goods. For example, in terms of energy consumption and efficiency, we introduced mandatory energy efficiency standards for power transformers, chiller units, and small- and medium-sized cold storage facilities. We also introduced mandatory energy consumption quota standards for coal-to-olefin, coal-to-natural gas and coal-to-oil business, as well as refining and chemical industries. The implementation of these standards, supported by relevant policies, helps drive technological transformation and equipment upgrades in enterprises.

High standards are the cornerstone of high-quality development, just as a solid foundation is essential for skyscrapers. The SAMR will continue to thoroughly implement the guiding principles of the third plenary session of the 20th CPC Central Committee. We will adapt to the requirements of high-quality development by accelerating the implementation of our standards improvement initiative, continuously enhancing the national standards system, optimizing the standard supply structure, and elevating the overall quality of standards. For key products affecting people's safety, we will expedite the formulation and revision of mandatory national standards, strengthen their implementation and application, enhance the guiding role of standards, and maximize standardization efficiency. Thank you.

Phoenix TV:

The 2024 government work report proposes resolutely investigating and dealing with the imposition of arbitrary charges, fines and quotas. What measures is the SAMR implementing to curb arbitrary charges on enterprises? Thank you.

Pu Chun:

I'll invite Mr. Wang Guowei to answer this question.

Wang Guowei:

Arbitrary charges on enterprises increase their costs and undermine the business environment. Even if it's an isolated occurrence, it can substantially erode businesses' confidence in the economic climate. This conduct is unacceptable, and we must implement a stringent zero-tolerance policy. To address this issue, the SAMR has implemented directives from the CPC Central Committee and the State Council, launching a special campaign against irregular charges affecting businesses. To identify and resolve problems to the greatest extent possible, we have focused on strengthening four key measures:

First, we are focusing on key fee-charging entities. Regarding behaviors involving providing services or selling goods to businesses and collecting fees, four types of entities are more likely to engage in improper charging. First, administrative bodies, as well as public institutions and social organizations authorized by laws and regulations to perform public affairs management functions. Second, social organizations and public institutions entrusted by the government to undertake tasks and provide services that fulfill official responsibilities. Third, industry associations and chambers of commerce with significant industry influence. Fourth, business entities with advantageous positions in specific fields and market transactions. We will pay particular attention to and conduct thorough inspections of them.

Second, we are highlighting key industries. We'll focus on problems reported by government departments and affiliated units, industry associations, financial institutions, natural gas networks, and water supply companies, as well as issues raised by technology innovation and manufacturing enterprises. The aim is to help the real economy reduce external costs and increase internal momentum.

Third, we are investigating key illegal activities. In this campaign, we've investigated and dealt with relevant illegal practices in accordance with the law. These include unauthorized charges by administrative approval intermediaries, industry associations leveraging administrative power for improper fees, failure of administrative licensing departments and financial institutions to implement fee reduction policies, and natural gas networks and water supply companies not adhering to government pricing. This demonstrates our commitment to tackling the challenges faced by businesses.

Fourth, we are optimizing law enforcement inspection methods. To improve governance quality and effectiveness, this year, we organized cross-regional inspections in different locations and conducted key spot checks with national-level teams. We also implemented measures such as gathering business feedback and reviewing enforcement case files to ensure the timely detection and resolution of illegal activities.

The special rectification action has achieved positive results. Here are some figures: So far, a total of 44,800 units have been inspected, 1,253 cases have been filed, and 393 million yuan in unwarranted charges have been refunded.

Next, we will further smooth the channels for uncovering illegal and non-compliant activities, significantly improve our regulatory enforcement capabilities, and ensure the effective supervision and implementation of the Compliance Guidelines for the Charging Practices of Industry Associations and Chambers of Commerce. Additionally, we will also accelerate the introduction of the Measures for Handling Illegal and Non-compliant Charging Practices Involving Enterprises. By relying on the authority of the rule of law, we aim to systematically address the issue of arbitrary charges on enterprises, effectively reduce unreasonable costs and play a stronger protective role in the healthy development of enterprises. Thank you.

Yicai:

Regarding efforts to strengthen quality support and standard leadership, the SAMR is currently carrying out initiatives to strengthen quality in enterprises, across industrial chains and in counties. How is this work progressing? And what will the focus be in the next phase? Thank you.

Pu Chun:

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

Liu Sanjiang:

Thank you for your interest in the three key initiatives related to quality. Earlier this year, the SAMR deployed three key initiatives: strengthening quality in enterprises, across industrial chains and in counties. These initiatives aim to promote high-quality development across points, lines and sectors, and so far, the overall progress has been smooth. In terms of strengthening quality across industrial chains, we are primarily focusing on the quality improvement needs of key industrial chains such as integrated circuits, artificial intelligence, quantum information technologies and new energy vehicles. We have established 146 key tasks for breakthroughs, bringing together a large number of research institutions, top research universities and leading enterprises to collaborate on these challenges. This has strengthened quality support for key industrial chains, and we have achieved phased results. As for enhancing quality in enterprises and counties, work plans and indicator systems have been developed and are being gradually rolled out nationwide. Moving forward, we will focus on the following areas:

In terms of strengthening quality in enterprises, we will cultivate a group of leading enterprises that will contribute to building China into a "manufacturer of quality," thereby better leveraging quality to promote the growth and strengthening of enterprises. Specific measures include: formulating and issuing cultivation guidelines, establishing clear orientation guidance, and, while directing enterprises on "what to do," emphasizing guidance on "how to do it." We plan to organize an on-site experience exchange and promotion conference for leading enterprises to share their quality improvement experiences. We will guide various regions to base their actions on actual industrial development conditions, promote extensive exchanges of benchmark experiences in quality, and encourage more enterprises to learn from advanced examples and align with benchmarks. Our goal is to create a positive atmosphere for quality improvement through "comparing, learning, catching up, assisting and surpassing," thereby gathering strong momentum for building China into a manufacturer of quality.

In terms of strengthening quality in industry chains, we will continue to promote major landmark projects to better leverage the role of quality infrastructure in supporting the creation of complete industrial ecosystems and strengthening industrial chains. To address the weak links and urgent needs for core components, testing methods and other key technical standards essential for the development of key industries, we will accelerate the development of a batch of national standards and promote the establishment of a set of international standards. To address the issue of non-uniform measuring instruments in key industries, we will establish new methods for the transmission and traceability of measurement values and develop a batch of measurement technical specifications and measurement standard devices. To address the notable issues of missing testing methods and insufficient inspection capabilities for key products and important equipment, such as complete industrial robots and their core components, we will expedite the development of urgently needed inspection and testing methods. Regarding the imperfect certification and accreditation system for key industries, such as ultra-fast charging for electric vehicles, we will establish a set of quality evaluation and certification systems to help enhance the quality linkages of industrial and supply chains. Later this month, we will hold a national on-site experience exchange and promotion conference on strengthening quality in industrial chains in Guangzhou, which we welcome you all to attend.

In terms of building strong counties with quality, we will focus on cultivating a group of counties, districts and towns with strong qualities to better leverage quality in promoting sustainable urban development. This includes strengthening categorized development and construction guidance, and supporting various local quality innovation practices. We will establish a repository for counties (districts, towns) with strong qualities and enhance longitudinal monitoring and cross-comparison of quality conditions. We will hold experience exchange meetings for counties with strong qualities to share and promote cutting-edge experiences and distinctive practices, striving to create new regional advantages in quality development. That's all for my introduction, thank you.

Xing Huina:

The last question, please.

Economic Daily:

The third plenary session of the 20th CPC Central Committee proposed promoting the development of the platform economy and improving its routine regulation system. Could the SAMR share its thoughts on this?

Pu Chun:

I'll take this question. Now, internet platforms are integral to our work and daily lives. Ensuring their standardized and healthy continuous development is a widespread concern in society. The market supervision department attaches great importance to this field. From the strategic perspective of building new national competitive advantages, we emphasize both development and regulation. We actively support platform enterprises playing a crucial role in promoting innovation, increasing employment as well as international competition.

This year, we have organized six compliance promotion meetings for platform enterprises, focusing on areas such as regulating the "618" promotion activities and ensuring the safety of electric bicycles. We've established a routine communication mechanism with platform enterprises. We reinforced the responsibility of platform enterprises through compliance management and consistently conducted online market supervision actions to foster development and ensure safety, especially issuing compliance reminders during critical periods to maintain a regulated and orderly market environment within the platform economy. This helps secure a foundation for the high-quality growth of various business entities.

In terms of standardization, we've guided the release of the Big Data Standardization White Paper (2023 Edition), introduced 35 national standards that are critical to the flow of data and 22 national standards for e-commerce quality supervision. We have continued to formulate and improve the standards for e-commerce, cross-border e-commerce and other key areas. We have advanced standards related to e-commerce quality traceability and development evaluation. As the secretariat of the ISO Technical Committee on Transaction Assurance in E-commerce, we have actively engaged with international counterparts to build a global framework for e-commerce regulations. By promoting the integration and alignment of domestic and international e-commerce standards, we strived to facilitate the high-quality development of the platform economy.

Moreover, we have been building and enhancing the quality certification system in the field of data, intensifying our certification efforts in areas such as mobile internet applications, data security management and personal information protection, with over 300 certificates issued. We have promoted a comprehensive, multi-level mechanism for accrediting applications in quality certification, continuously enhancing the system's effectiveness and credibility, as well as bolstering data security awareness and personal information protection capabilities among platform enterprises.

In terms of regulatory measures, we have improved the smart regulatory rules in the field of market supervision and have initially formed a smart regulatory system and model that enables timely perception, rapid response, systematic supervision, proactive service and integrated governance. We are accelerating the development of the national online transaction supervision platform, enhancing our ability to provide early warnings and emergency response to major risks in the platform economy sector, and thus ensuring its healthy development.

That's all for my briefing. Thank you.

Xing Huina:

That concludes today's press conference. Thank you to our speakers and all the reporters for participating. Goodbye!

Translated and edited by Xu Xiaoxian, Wang Yiming, Wang Qian, Liu Jianing, Ma Yujia, Guo Yiming, Liu Sitong, Xu Kailin, Lin Liyao, Yuan Fang, Yan Xiaoqing, Liu Qiang, Wang Yanfang, Huang Shan, Zhou Jing, Liao Jiaxin, Li Huiru, Zhang Rui, Zhang Junmian, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Ms. Li Yongjie, deputy China international trade representative (vice-ministerial rank) of the Ministry of Commerce (MOFCOM)

Mr. Xu Xingfeng, director general of the Department of Market Operation and Consumption Promotion of MOFCOM

Mr. Li Xingqian, director general of the Department of Foreign Trade of MOFCOM

Mr. Zhu Bing, director general of the Department of Foreign Investment Administration of MOFCOM

Chairperson:

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

Date:

Aug. 2, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Ms. Li Yongjie, deputy China international trade representative (vice-ministerial rank) of the Ministry of Commerce (MOFCOM), to brief you on relevant developments and to take your questions. Also present today are Mr. Xu Xingfeng, director general of the Department of Market Operation and Consumption Promotion of MOFCOM; Mr. Li Xingqian, director general of the Department of Foreign Trade of MOFCOM; and Mr. Zhu Bing, director general of the Department of Foreign Investment Administration of MOFCOM. 

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

Li Yongjie:

Ladies and gentlemen, good morning. I'd like to express my gratitude to you for your interest in and support for the commerce-related work. It's a pleasure to meet you here and speak with you on the high-quality development of commerce. 

The report to the 20th National Congress of the Communist Party of China (CPC) points out that "to build a modern socialist country in all respects, we must, first and foremost, pursue high-quality development." MOFCOM has firmly implemented the decisions and deployments of the CPC Central Committee, fully and faithfully applied the new development philosophy on all fronts, and promoted the high-quality development of commerce. Our efforts have contributed to creating a new development pattern and advancing Chinese modernization through the development of commerce. This is mainly reflected in four aspects:

First, new progress has been secured in consumer spending. We have focused on enhancing the fundamental role of consumption in promoting economic development. During this process, we have introduced consumer goods trade-in programs and policies to boost automobile and home furnishing consumption, as well as to promote high-quality development of the catering industry. We have also launched the "Consumption Boosting Year" and "Consumption Promotion Year" series of activities. Additionally, improvement of urban and rural distribution facilities has been advanced. In 2023, the total retail sales of consumer goods reached 47.1 trillion yuan (about $6.6 trillion), setting a new record.

Second, foreign trade has gained new momentum. We have worked to stabilize the volume of foreign trade and improve its structure, rolled out the "1+N" policy package, and implemented a series of polices and measures aimed at promoting trade and assisting enterprises. Major events such as the China International Import Expo (CIIE), Canton Fair, China International Fair for Trade in Services, and Global Digital Trade Expo were successfully held. We have promoted the innovative development of trade in services and implemented a negative list for cross-border trade in services. In 2023, China maintained its position as the world's largest trader, securing rapid advancements in new growth drivers such as the "new trio" (electric vehicles, lithium-ion batteries and photovoltaic products) and cross-border e-commerce.

Third, new strides have been made in utilizing foreign investment. We have intensified efforts to attract and utilize foreign investment by introducing policies to refine the foreign investment environment and step-up efforts to attract more investment. We have actively cultivated the "Invest in China" brand and upgraded the foreign enterprise roundtables system. Moreover, we have proactively aligned with high-standard international economic and trade rules and piloted such alignment in free trade zones and ports, to develop new pacesetters for opening up.

Fourth, new breakthroughs have been achieved in international economic and trade cooperation. We have focused on promoting high-quality cooperation under the Belt and Road Initiative (BRI), and successfully hosted the Thematic Forum on Trade Connectivity of the Third Belt and Road Forum for International Cooperation. At the thematic forum, a series of economic and trade cooperation outcomes were achieved and the Initiative on International Trade and Economic Cooperation Framework for Digital Economy and Green Development was launched. China has involved itself fully in the reform of the World Trade Organization (WTO) and facilitated practical outcomes at the 13th WTO Ministerial Conference. We have promoted the entry into full effect of the Regional Comprehensive Economic Partnership (RCEP), worked toward joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA), and actively engaged in free trade agreement negotiations.

This year, business operations have been steady while making progress. New achievements have been made in high-quality development, contributing to national economic growth.

Consumption has maintained steady growth, with total retail sales of consumer goods reaching 23.6 trillion yuan in the first half of the year, up by 3.7%. The consumer goods trade-in policies are gradually taking effect, with over 450,000 applications for car scrapping and renewal subsidies submitted nationwide as of 9 a.m. today. The retail sales of new energy passenger vehicles grew by 33.1% in the first half of the year. Services consumption grew rapidly, with retail sales of services and catering revenue increasing by 7.5% and 7.9%, respectively, in the first half of the year. 

The volume of foreign trade has steadily increased and its quality has improved. In the first half of the year, imports and exports of goods totaled 21.2 trillion yuan, an increase of 6.1%; and imports and exports of services reached 3.6 trillion yuan, up by 14%. The contribution of goods and services imports and exports to economic growth reached 13.9%. The cultivation of new foreign trade growth drivers has accelerated, with cross-border e-commerce exports maintaining rapid growth and exports of competitive products such as ships and vehicles growing quickly in the first half of the year. According to a survey of 16,000 key foreign trade and foreign-invested enterprises conducted by MOFCOM, over 70% of enterprises expect export growth this year.

The "Invest in China" brand has become more attractive. A total of 17 major "Invest in China" events have been organized, widely promoting investment opportunities in China, and 12 foreign enterprises roundtables have been held. It has continuously become easier for foreign nationals to live and work in China. As the business environment has constantly been improved, 27,000 new foreign-invested enterprises were established in China in the first half of this year, with utilized foreign investment reaching 498.9 billion yuan. The structure of foreign investment attracted has been continuously refined, with the proportion of investment in high-tech manufacturing increasing by 2.4 percentage points compared to the same period last year.

Foreign investment and cooperation have grown rapidly. In the first half of the year, non-financial outbound direct investment reached 516 billion yuan, an increase of 19.5%. The turnover of overseas contracted projects amounted to 513.3 billion yuan, up by 4.7%.

The recently concluded third plenary session of the 20th CPC Central Committee made systematic plans for further deepening reform comprehensively. MOFCOM will thoroughly study and implement the guiding principles of the session, promote the establishment of a unified national market, and steadily expand institutional opening up. We will also deepen the foreign trade structural reform, further reform the management systems for inward and outward investment, improve planning for regional opening up, and refine the mechanisms for high-quality cooperation under the BRI. Through these efforts, we aim to make substantial achievements in commerce reform and development, thus making new contributions to advancing Chinese modernization.

Next, my colleagues and I are happy to answer your questions. Thank you.

Xing Huina:

The floor is now open to questions. Please identify your news agency before asking your questions.

Beijing Youth Daily:

Recently released data shows China's total import and export value of goods exceeded 21 trillion yuan in the first half of the year, up 6.1% year on year. This scale set a new record for the same period. How does MOFCOM view foreign trade performance in the first half of the year, and what are its evaluations and views on future foreign trade trends? Thank you.

Li Yongjie:

Thank you for your question. In the first half of this year, foreign trade operations have shown steady progress. Our goods trade has demonstrated strong resilience and market vitality, characterized by increased volume, improved quality and a stable market share.

From a quantity perspective, we've maintained scale. Here are some numbers: First, in the first half of the year, the total import and export value of goods reached 21.2 trillion yuan, a record high for the same period, up 6.1% year on year. The daily average import and export value was 116.31 billion yuan, which is over 40% higher than in the same period in 2019. Net export of goods and services contributed 0.7 percentage point to GDP growth. Second, export and import quantities increased by 12.7% and 3.1%, respectively, indicating active cross-border movement of goods. Foreign trade cargo throughput at national ports rose 8.8% in the first half of the year. Third, the number of foreign trade entities involved in exports and imports increased to 586,000, up 8.7% year on year, adding 47,000 entities, further boosting corporate vitality.

From the perspective of quality, the structure continues to be optimized. First, trade cooperation with emerging markets has deepened, with the proportion of our imports and exports with these markets rising to 64.9%. At the 135th Canton Fair, buyer attendance from Belt and Road partner countries increased by 25%, and transactions were also very active. Second, the export products have been continuously improved, with electromechanical products now comprising 58.9% of exports. High-tech and high-value-added products maintained rapid growth, with automobile and ship exports increasing by 22.2% and 91.1%, respectively. Electronic information products steadily recovered, with exports of integrated circuits and household appliances growing by 25.6% and 18.3%, respectively. Third, new drivers of foreign trade show positive progress. According to preliminary estimates by the General Administration of Customs, cross-border e-commerce imports and exports reached 1.22 trillion yuan in the first half of the year, up 10.5%, involving over 120,000 business entities. We actively pursued international cooperation on trade digitalization and sustainability. We've reached agreements on the Initiative on International Trade and Economic Cooperation Framework for Digital Economy and Green Development with 39 countries. The market for green and low-carbon products is vast, with new energy vehicles exported to over 170 countries and regions. Fourth, the international market share remained stable with some growth. In the first quarter, the export international market share was 13.6%, a 0.2 percentage point increase year on year. China continued to maintain its position as the world's largest goods trading nation. Preliminary estimates indicate that the share stabilized at around 14% in the first half of the year.

Currently, the external environment's complexity and severity are increasing. We must fully recognize the serious difficulties and challenges in foreign trade. Several international organizations report that the global trade in goods has shown a moderate recovery since early this year. However, geopolitical tensions, increasing trade restrictions and intensified national industrial policy competition may have significant negative impacts. The WTO's latest monitoring shows a significant increase in members' import restrictions. Measures taking effect in 2024 are expected to affect $2.3 trillion worth of imports, 9.7% of global imports — the highest level since 2020.

Maintaining stable growth in both the quality and volume of foreign trade this year will require continued efforts in the second half. We will make good use of various multilateral and bilateral mechanisms to help businesses counter unreasonable trade restrictions, support enterprises in exploring international markets through platforms like the Canton Fair, and work to create a stable and predictable trade policy environment. Additionally, we will intensify efforts to cultivate new drivers of foreign trade and enhance the overall competitiveness of foreign trade. At the same time, we will continue to deepen mutually beneficial cooperation with trade partners to jointly maintain the stability and smooth operation of global industrial and supply chains. Thank you.

National Business Daily:

In the first half of this year, China's cross-border e-commerce maintained steady growth and exhibited positive development momentum. What measures will the MOFCOM implement to further promote the development of cross-border e-commerce?

Li Yongjie:

I will invite Mr. Li to answer this question.

Li Xingqian:

Thank you for your interest in cross-border e-commerce development. In the first half of the year, China's cross-border e-commerce imports and exports maintained stable growth. The growth rate reached 10.5%, 4.4 percentage points higher than overall national foreign trade growth. From a market perspective, our trade with countries like France, Belgium, Spain and Malaysia has grown rapidly. Consumer goods are the main export products, and some high-value-added products show strong growth momentum. For example, exports of office equipment increased by 50.7%, and camera exports grew by 30.7%. Imported goods from overseas are popular among domestic consumers, with food imports increasing by 22.8%, luggage imports growing by 70.8% and wine imports rising by 55.4%. Geographically, coastal regions such as Guangdong and Zhejiang are the main drivers of cross-border e-commerce trade, accounting for nearly 90% of the national total. According to a recent survey we conducted, nearly 80% of cross-border e-commerce enterprises are optimistic about growth prospects in the second half of the year.

Next, we will implement the plans from the third plenary session of the 20th CPC Central Committee, continue to adhere to the principle of encouraging innovation and conducting regulation in a tolerant and prudent way, and focus on doing a good job in two aspects:

On the one hand, we will optimize the service ecology. We will implement special policies for cross-border e-commerce, support the development of cross-border e-commerce to empower industrial belts as well as guide local governments to cultivate a number of development models. We will promote through on-site meetings between comprehensive pilot zones the exchange of experience with cross-border e-commerce. We will support the cultivation of cross-border e-commerce brands. At the same time, we will also give full play to the role of local industry organizations, improve the level of industry self-regulation as well as guide cross-border e-commerce companies to operate within compliance, to compete in an orderly manner and to actively fulfill their social responsibilities. In the second half of the year, we will also hold the 136th Canton Fair, which is also known as the "Autumn Fair." At the Canton Fair, we will continue to set up a special exhibition area for cross-border e-commerce. We will encourage Chinese logistics companies to strengthen international cooperation with host country's courier delivery companies, especially to increase efforts to enhance the "last kilometer" performance of cross-border e-commerce companies.

On the other hand, we will deepen international cooperation, actively participate in international multilateral and bilateral negotiation as well as take advantage of the bilateral joint economic and trade committees and standing working groups on promoting trade cooperation as communication mechanisms to promote the experiences, practices and achievements of our cross-border e-commerce development. We should vigorously develop "Silk Road e-commerce" and support comprehensive pilot zones for cross-border e-commerce. Industries and enterprises at all levels need to actively carry out international exchanges and cooperation. We encourage cross-border e-commerce platforms to expand their categories and service functions of goods, and support the healthy development of e-commerce platforms of consumer goods mainly for C-end, as well as the innovative development of e-commerce platforms for industrial equipment, semi-finished products and parts mainly for B-end. Thank you.

Tianjin Haihe Media Group:

The third plenary session of the 20th CPC Central Committee proposed to implement a strategy for upgrading pilot free trade zones and encouraged these zones to engage in pioneering and integrated explorations. How have the free trade pilot zones progressed this year? What explorations will be carried out in the next step? Thank you.

Li Yongjie:

I'll ask Mr. Zhu to answer your questions.

Zhu Bing:

"Implement the strategy for upgrading pilot free trade zones and encourage these zones to engage in pioneering and integrated explorations" -- we interpret "upgrading" and "exploration" here as further improving the construction quality of pilot free trade zones on the basis of the construction achievements of the past ten years, strengthening the function of the comprehensive experimental platform for reform and opening up, giving better play to the pioneering spirit of community-level organizations, paying more attention to the system integration of reform, and daring to brave uncharted waters and solve difficult problems, so as to accumulate new experience for comprehensively deepening reform and opening up. In September of last year, General Secretary Xi Jinping issued important instructions on deepening the construction of the pilot free trade zones (FTZs). The MOFCOM has carefully studied and implemented the important instructions of General Secretary Xi Jinping, accelerated the implementation of strategies to upgrade FTZs and has made progress in four aspects:

First, the pilot alignments have been promoted across the board. The pilot measures for the first batch of qualified FTZs and free trade ports (FTPs) to align with high-standard international economic and trade rules that promote institutional opening up have been fully implemented, and the overall plan for the Shanghai Pilot Free Trade Zone to fully dovetail with high-standard international economic and trade rules is also being accelerated. A number of projects and demonstration cases have been formed for importing remanufactured products in key industries and for supporting overseas personnel to provide professional services.

Second, the opening up of services has been steadily expanded. We have issued and implemented a negative list of cross-border trade in services in the FTZs, and have cooperated with the Ministry of Industry and Information Technology to expand foreign investment access in the telecommunications sector within the Shanghai Pilot FTZ and other regions, continuously improving the opening up of the service sector.

Third, breakthroughs have been made in key areas. We have worked with the Cyberspace Administration of China and other departments to support pilot free trade zones in formulating a negative list for cross-border data flows under the framework of the national data classification and hierarchical protection system. Currently, pilot FTZs in Tianjin, Shanghai and other areas are actively promoting relevant explorations.

Fourth, the benefits of innovation have been continuously released. We have released and promoted 47 institutional achievements with innovation as well as have promoted 349 items at the national level, effectively utilizing the demonstration and leading role of the comprehensive experimental platform for reform and opening up. In the first half of 2024, the actual use of foreign capital in the 22 pilot FTZs reached 103.96 billion yuan, and the total value of imports and exports reached 4.1 trillion yuan. Covering less than 0.4% of China's total land area, the 22 pilot FTZs attracted 20.8% of the country's total foreign investments and contributed 19.5% to national imports and exports.

Next, the MOFCOM will implement the guiding principles of the third plenary session of the 20th CPC Central Committee, promote pilot FTZs to carry out preliminary trials and to integrate exploration in a wider and deeper range of areas, and contribute to further deepening reform comprehensively as well as advancing Chinese modernization.

First, we will strengthen overall planning and system integration, enhancing the function of the comprehensive experimental platform for reform and opening up. We will further develop reform in a systematic, holistic and coordinated way by focusing on in-depth implementation strategies for the upgrading of pilot FTZs. At present, we are studying and formulating a comprehensive document on implementation strategies for the upgrading of pilot FTZs. We will launch a number of leading and integrated reform measures to explore more successful experiences that can be replicated and promoted for deepening reform comprehensively.

Second, we will deepen alignment with international high-standard economic and trade rules, raising the level of institutional opening up. In terms of aligning with rules, we will ensure the successful implementation, evaluation and replication of pilot projects in FTZs that seek to align with international high-standard economic and trade rules, aiming to help release policy dividends on a larger scale. At the same time, we will strengthen forward-looking research on these rules and conduct new pilot tests in areas such as property rights protection, the environment, government procurement, e-commerce and finance to achieve compatibility in rules, regulations, management and standards. Regarding the opening up of key areas, we will conduct in-depth research on further expanding the opening up of commodity, service and capital markets by relying on FTZs. We will use the two negative lists for foreign investment access and cross-border service trade as essential tools to expedite the opening up of relevant service sectors.

Third, we will strengthen integrated innovation across the entire industry chain, enhancing the development momentum of new quality productive forces. We will support FTZs to further deepen differentiated exploration, fully leveraging their advantages of a sound industrial foundation, high-level aggregation and strong innovation capabilities. We will promote innovative development throughout the entire industry chain by focusing on key areas such as bulk commodities, biomedicine, equipment manufacturing and the marine economy. We aim to achieve more institutionalized innovative outcomes in developing new quality productive forces.

That's all from me, thanks.

International Business Daily:

What new progress has China made in building a high-standard global free trade zone network in recent years? The third plenary session of the 20th CPC Central Committee proposed improving systems and mechanisms for high-level opening up and proactively aligning with international high-standard economic and trade rules. What steps will MOFCOM take next to further expand high-level opening up? Thank you.

Li Yongjie:

Promoting the construction of a high-standard global free trade zone network is an important task for MOFCOM. In recent years, following the instructions of the CPC Central Committee and the State Council, we have actively advanced relevant work and made good progress. So far, we have signed 22 free trade agreements with 29 countries and regions, and trade volumes with our free trade partners account for about one-third of China's total foreign trade volume. Our free trade partners are spread across Asia, Latin America, Africa, Europe and Oceania. In the first half of this year, we implemented three free trade agreements with Nicaragua, Ecuador and Serbia, signed an early harvest arrangement for the free trade agreement with Honduras, completed substantive negotiations on upgrading the free trade agreement with Peru, and officially started free trade agreement negotiations with El Salvador and negative list negotiations with New Zealand. The content of our free trade agreements is also continuously being enriched. For example, new contents, such as cooperation on standards and the digitization of trade documents, are gradually being included in the free trade agreements being signed or negotiated.

At the same time, free trade agreements have further helped to enhance the bilateral trade and investment. For example, since the China-Nicaragua free trade agreement took effect this year, the two countries have seen their bilateral trade volume rise 56% year on year in just half a year. Another example is the Regional Comprehensive Economic Partnership (RCEP). China's non-financial direct investment in other RCEP member countries reached $9.53 billion in the January–May period of this year, a 28% year-on-year increase.

Next, MOFCOM will resolutely implement the relevant arrangements and requirements of the third plenary session of the 20th CPC Central Committee and further expand the high-standard global free trade zone network.

First, we will expand its scope. We will continue to follow the CPTPP's accession procedures, further conduct bilateral consultations based on previous exchanges with all members, and advance the accession process. We will strive to conclude negotiations as soon as possible on version 3.0 of the China-ASEAN Free Trade Area, on free trade agreements with Honduras and El Salvador, and on upgrading free trade agreements with New Zealand and others. We will vigorously promote the China-Japan-South Korea FTA talks, as well as free trade cooperation with the Gulf Cooperation Council, Norway, Switzerland, Bangladesh and other countries and regions. We will expand our network of free trade agreements with receptive countries and regions, aiming to boost our trade volume with free trade partners to 40% of the county's total foreign trade by 2030.

Second, we will improve its quality. We will further open up trade in goods in newly signed free trade agreements, promote more products to be included in the zero-tariff list, advance negotiations on service trade and investment through negative lists, and further open up key areas such as telecommunications, healthcare and tourism. We will also actively incorporate into future free trade agreements high-level economic and trade rules in areas such as the digital economy, green economy, intellectual property and standards certification. We seek to build a new development pattern through high-level opening up and achieve mutual benefit and win-win outcomes with our free trade partners.

Third, we will increase its efficiency. We will continue to ensure high-quality implementation of all the signed free trade agreements such as the RCEP, further enhancing their utilization. We will actively launch promotional events and training to help enterprises fully leverage the preferential policies of these agreements. Such efforts aim to further promote the flow of goods, services and investments, allowing the agreements to benefit people on both sides better. Additionally, through the dividends of free trade cooperation, we aim to strengthen the cooperative ties between China and our free trade partners.

Fourth, we will promote reforms. We will further collaborate with relevant departments to actively align with high-standard economic and trade rules at the international level and in accordance with the requirements of the third plenary session of the Central Committee of the CPC, further advancing reforms in areas such as property rights protection, industrial subsidies, environmental protection, labor protection, government procurement, e-commerce and finance. At the same time, we will intensify efforts in pilot projects and promptly summarize and promote successful experiences. All these efforts aim to boost the integration and compatibility of rules, regulations, management and standards, as well as achieve a favorable situation where high-standard opening up and deep reforms can mutually support and reinforce each other. Thank you.

Cover News:

In March of this year, the MOFCOM and relevant departments jointly issued an action plan to promote consumer goods trade-ins. What results have been achieved? What further measures will be introduced in order to favor consumers with more tangible benefits? Thank you.

Li Yongjie:

Thank you for your questions. I'll invite Mr. Xu Xingfeng to answer them.

Xu Xingfeng:

First of all, thank you for your attention to consumer goods trade-ins. To promote this initiative is the decision and arrangement made by the Party Central Committee and the State Council with a focus on overall high-quality development. The MOFCOM and relevant departments have thoroughly implemented this initiative by introducing action plans and detailed rules for application of subsidies and have established an effective mechanism based on full respect for consumers' willingness, empowering them with convenience and motivation. In terms of vehicles, we have coordinated various parties and rolled out a combination of policies and measures focusing on the entire industrial chain encompassing the purchasing, driving, selling and scrapping of cars. In terms of home appliances, décor and kitchen and bathroom products, we have adopted measures to optimize recycling, making consumption more convenient, recycling more standardized and the circumstances more eco-friendly.

The journalist is interested in the results of our efforts, which can be demonstrated in two aspects. First is consumers' wide recognition. A recent survey conducted by relevant departments in over ten provinces and cities showed that more than 80% of consumers were aware of this policy and over 70% were willing to participate in it. The results are reflected in social recognition. Second is data. As the specific data just reported by Ms. Li Yongjie presents, by 9 a.m. today, we have received over 450,000 applications for vehicle scrapping and trade-in subsidies, showcasing robust growth. In the first half of this year, the recycling of scrapped vehicles increased by 27.6% year on year, and new energy passenger vehicles' retail sales have increased by 33.1%. In terms of home appliances, the retail sales of units above designated size increased by 3.1% year on year in the first half of the year, which was 2.1 percentage points higher than the same period last year. In terms of home décor and kitchen and bathroom products, the yearly growth of retail sales of furniture at units above designated size was 2.6%, indicating that the effects of the policy have been gradually emerging.

Recently, in accordance with the arrangements of the State Council, the National Development and Reform Commission and the Ministry of Finance have rolled out several measures to boost large-scale equipment renewals and consumer goods trade-ins. The efforts are ramped up with 150 billion yuan in ultra-long special treasury bonds to support different localities to make their own decisions and carry out consumer goods trade-ins. The subsidy standards are increased from 10,000 yuan for purchasing a new energy passenger vehicle and 7,000 yuan for purchasing a fuel passenger vehicle to 20,000 yuan and 15,000 yuan, respectively. 

In terms of home appliances, we offer subsidies for eight categories, including refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household cookers and kitchen exhaust hoods. There are more detailed measures regarding home decoration and kitchen and bathroom products, providing support for old house renovation, kitchen and bathroom renovation, elder-friendly home modification and smart home solution consumption. We also support trade-ins of electronic bicycles, which is an addition. 

The journalist just asked about our plan to favor consumers with tangible benefits and further manifest the effects of the policy, which can be summarized into four keywords:

The first keyword is continuity. We have made adjustments with supportive policies by increasing the level of support and expanding the scope to cover more categories, and we should ensure continuity between previous and following policies. We will collaborate with relevant departments to promptly issue notices on further enhancing trade-ins of vehicles and home appliances, and introduce guidelines for upgrading home decoration and kitchen and bathroom products as well as implementation plans for trade-ins of electronic bicycles. The vehicle trade-in policy will also cover past cases. Those who previously received a subsidy of 10,000 yuan will be compensated an additional subsidy to match the new standard of 20,000 yuan, ensuring that early consumers do not suffer losses, which also reflects policy continuity.

The second keyword is guidance. We will encourage local governments to make their own decisions and improve their capabilities regarding trade-ins, guide them to improve supporting measures timely, and organize and implement the work effectively. We will further optimize subsidy review and fund allocations, speed up the review process, and improve service quality, to smooth the "last mile" of subsidy application and minimize the time for consumers from submitting applications to receiving subsidy funds. We will also implement measures such as facilitating sales of used cars, online cancellation of automobile registration and reverse invoicing of renewable resource recycling enterprises. These are supportive measures for promoting trade-ins, with the aim to ensure a smooth "venous circulation" in the trade-in process by continuously improving the renewable resource recycling system and making it more convenient for consumers to dispose of waste materials.

Third, publicity and promotion. To make this policy better known among the people, we hope journalists can pay more attention and be more supportive, using popular and easy to understand ways to step up this publicity and promotion at communities, enterprises, platforms, institutions and expos in order to increase the public's awareness. Moreover, we plan to step up publicity and promotion by providing trade-ins at various activities, including distinctive brand events of different regions and major expos for different industries, as well as organizing supply-demand matching activities. We will promote intelligently connected vehicles and smart home devices among other products highlighting quality and value for money to satisfy consumers' demand for trade-ins. 

Fourth, supervision and guidance. We will enhance follow-up efforts to evaluate the effectiveness of this policy by organizing comprehensive inspection for consumer product trade-ins, offering guidance for different localities and making better use of fiscal funds. The public has concerns over such trade-ins. They worry about false publicity, false price reduction and the selling of fake and low-quality products only to swindle subsidies. In view of this, we will smooth channels for filing complaints and lawfully crack down on these misconducts to create a favorable business environment. And we welcome media supervision. Let's work together to deliver good results. 

That's all I have to share. Thank you.

Phoenix TV:

My question is about consumption. This year, China launches a year-long program to stimulate consumption, and the MOC has organized and carried out a series of consumption promotion activities across the country, what measures will be taken next to spur the steady growth of consumption? Thank you.

Xu Xingfeng:

I appreciate your interest in this issue. Since the beginning of the year, the MOC has earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, boosting consumption by implementing policies and hosting activities. We have carried out a series of innovative activities to mark this year of consumption promotion, achieving remarkable results. According to Ms. Li's briefing, in the first half of the year, retail sales of consumer goods totaled 23.6 trillion yuan, up 3.7% year on year. The highlights of consumption in the first half of the year can be summarized by four terms: 

First, "steady" growth in bulk consumption. In the first half of this year, passenger car sales grew 3.3% year on year. New energy passenger vehicle retail sales grew 33.1% and accounted for 41.8% of all retail sales for passenger cars. Home appliance and furniture retail sales of businesses above designated size grew 3.1% and 2.6%, respectively, year on year. 

Second, "rapid" growth in service consumption. In the first half of this year, the retail sales of services grew 7.5% year on year, 4.3 percentage points higher than the growth rate of retail sales of goods. 

Third, "vitality" in new types of consumption. For example, in the first half of this year, online retail sales grew 9.8% year on year. The online retail sales of physical goods grew 8.8%. Online retail accounted for 25.3% of total retail sales. 

Fourth, "new" momentum in rural consumption. In the first half of this year, retail sales in rural areas reached 3.14 trillion yuan, up 4.5% year on year, 0.9 percentage point higher than the growth rate in urban areas. Per capita consumption expenditure of rural residents increased 7.6%, with the growth rate 1.5 percentage points higher than that of urban residents. 

The third plenary session of the 20th CPC Central Committee made arrangements for consumption related work. More recently, a meeting of the Political Bureau of the CPC Central Committee emphasized the expansion of domestic demands with the focus on boosting consumption. The economic policies will be more focused on improving wellbeing and promoting consumption. We will thoroughly implement the decisions and arrangements of the CPC Central Committee, upholding the three important roles of commerce related work (an important part of the domestic economic flow, an important link connecting domestic and international economic flow, and an important factor for the new development paradigm), and continuing to boost consumption. We will focus on five aspects in the second half of this year:

First, to make this year's consumption promotion activities great successes, providing the opportunity to enjoy a better life. With the aim to meet people's demand and address people's concerns, we will plan and launch serial high-quality activities. The campaign will have four features. Firstly, we plan to create four waves of consumption: one at back-to-school season, one at harvest season, one at ice and snow season, and one at family reunion season. Secondly, we insist on providing benefits for all. We will host lifestyle fairs to offer convenience to people within a 15-minute radius within urban areas, spur agricultural development through e-commerce and let urban and rural residents enjoy the harvest together. Thirdly, we will focus on intelligently networked vehicles and smart home devices as well as trendy domestic brands, driving up the volume of consumption of quality products by promoting both long-standing and newly established brands as additional growth points. Fourthly, we plan to promote consumption with different themes, such as hometown flavors, beautiful elderly life, scaling the heights and enjoying autumn scenery, fun with ice and snow and a celebration of the new year. We will provide diverse and quality products, including scenic views and gourmet food, for consumers to savor a beautiful life. 

Second, to step up efforts to promote consumer good trade-ins with the aim to stabilize bulk consumption. We have already given a briefing on this. Now, I'd like to stress that we will do a good job in hosting supply and demand matching activities, boosting unimpeded upstream and downstream industries in production, supply, and marketing. In addition, we will enhance policy alignment to truly and directly benefit the public. 

Third, to promote the high-quality development of service consumption and foster new drivers for consumption. Currently, consumers increasingly value pleasant experiences as well as mental and physical health. Boosting service consumption is an important measure to further expand and upgrade consumption. We will push the issuance of comprehensive documents to promote the high-quality development of service consumption, and wider openness in an orderly manner in the fields of telecommunications, internet, education, culture and medical care as well as encourage consumption in culture, tourism, elderly care, child care and housekeeping, with the aim to meet residents' demands for service consumption. 

Fourth, we will expand new types of consumption and nurture new consumption drivers. In the long run, we need to foster new areas of consumer spending. New technologies, industries and models have boosted emerging forms of consumption, such as digital, environmentally-friendly, and health-related consumption. These are new areas in the field of consumption. We will develop digital consumption further by implementing actions to boost it and holding promotional activities, such as "E-commerce Boosts Agriculture" initiative and "Silk Road Cloud Products" E-commerce Festival. We will continue to encourage the purchase of new energy vehicles, green intelligent home appliances, and green building materials in rural areas. Additionally, we will expand smart consumption and artificial intelligence-enhanced consumption scenarios, promoting smart devices such as intelligent home appliances, mobile phones and wearable devices. We will also promote health-related consumption and continue to carry out various activities to bring healthy consumption options into thousands of households.

The third plenary session of the 20th CPC Central Committee has outlined plans to actively promote the debut economy. We will accelerate implementation according to this arrangement, encouraging companies to release new products, open their first stores, and hold their first shows and exhibitions. We will continue to introduce new business forms, models, services and scenarios to meet consumer demand for fashion, quality and new trends.

The final point is to optimize consumption channels and promote consumption upgrading. We need to accelerate the development of international consumer center cities, pilot the reduction of restrictive measures on consumption in these cities, implement the debut economy, and improve cities' commercial capacity. We will continue to enhance the logistics system in rural areas and further unlock the consumption potential there. In short, urban and rural areas should interact with each other. That concludes my introduction. Thank you.

21st Century Business Herald:

Not long ago, MOFCOM announced data and information on China's use of foreign investment from January to June. This year, newly established foreign-invested enterprises in China have increased, while actual use of foreign capital has declined. How do you view the current situation of attracting foreign investment, and what tasks will you focus on next? Thank you.

Li Yongjie:

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

Zhu Bing:

Thank you for your attention to our efforts to attract and utilize foreign investment. As Ms. Li announced in her opening remarks, the actual amount of foreign capital utilized in the first half of this year was close to 500 billion yuan, maintaining a relatively high level compared to the past decade. Frankly speaking, the scale of foreign investment has experienced a year-on-year decline, primarily attributed to the exceptionally high base in the same period last year.

From a structural perspective, the composition of foreign investment has been continuously optimized. The proportion of actual foreign investment in China's high-tech manufacturing industry increased by 2.4 percentage points compared to the same period last year. Similarly, the proportion of foreign investment in the overall manufacturing industry also rose by 2.4 percentage points compared with the same period last year. These two instances indicate that the structure is being optimized and that foreign investors are actively adjusting their investment layouts across various industrial sectors. This trend aligns with China's broader initiatives to accelerate the development of new quality productive forces and advance new industrialization.

The underlying trend of China's economic recovery and long-term growth remains unchanged. China's comprehensive advantages — including its ultra-large-scale market, supply of high-quality industrial systems, and availability of high-end talent — continue to attract foreign investment. Most multinational companies are optimistic about long-term investment prospects in China, so they continue to increase their investments. As mentioned, nearly 27,000 new foreign-invested enterprises were established in the first half of this year, a 14.2% year-on-year increase. This figure demonstrates continued activity and continues the trend of rapid growth in the number of foreign-invested enterprises that we've seen since last year.

The third plenary session of the 20th CPC Central Committee detailed a comprehensive plan for attracting and utilizing foreign investment. Next, we will deeply study and implement the guiding principles of the third plenary session. We will uphold the Party's overall leadership, adhere to a people-centered approach, uphold fundamental principles and break new ground, strengthen institution building as our main task, stay committed to law-based governance on all fronts, and apply systems thinking. We will increase efforts to attract and utilize foreign investment. Moreover, we will pursue high-standard opening up to advance in-depth reform and high-quality development. Specifically, this includes the following aspects:

First, we will steadily expand institutional opening up. As previously mentioned when discussing pilot free trade zones, these areas play an important role in foreign investment, accounting for 20.8% — a significant share. Therefore, the work of pilot free trade zones is also crucial to foreign investment efforts. We will align with high-standard economic and trade rules mainly through pilot free trade zones and free trade ports. This will help achieve interoperability of rules, regulations, management and standards in multiple fields. We aim to leverage the exemplary role of pilot free trade zones and the Hainan Free Trade Port, while promptly extending qualified pilot measures to free trade zones nationwide.

Second, we will further relax market access. We will expand the catalog of industries that encourage foreign investment and publish the 2024 version of the negative list for foreign investment access. We will implement measures proposed by General Secretary Xi Jinping to remove all restrictions on foreign investment access in the manufacturing sector, meaning restrictions on the manufacturing industry throughout the country should be eliminated. At the same time, in light of our own development needs, we will promote orderly opening up in areas such as telecommunications, the internet, education, culture and medical care. We will also revise the Measures for Strategic Investment by Foreign Investors in Listed Companies to encourage more high-quality foreign capital to enter our capital market for long-term investment.

Third, we will deepen the reform of mechanisms and systems to promote foreign investment. We will focus on building the "Invest in China" brand and enhancing the effectiveness of key investment expos, including the notable China International Fair for Investment and Trade (CIFIT) hosted in Xiamen, along with other landmark events. We will improve the system for assessing the effectiveness of efforts promoting foreign investment, support regions in innovating their investment attraction models, and focus on advantageous fields to elevate the precision of investment solicitation, thereby drawing in more high-quality foreign capital.

Fourth, we will continue to enhance various opening-up platforms. This includes promoting comprehensive trials and demonstrations for expanding the opening up of the service sector. We will introduce new pilot projects to increase openness and innovation in fields such as value-added telecommunications, medical and health services, the digital economy, cultural tourism and transportation, and commercial aerospace and related niche consumption. This year marks the 40th anniversary of the establishment of the inaugural batch of state-level economic and technological development zones. We are committed to the high-quality development of these zones, which is crucial in catalyzing an open economy and fostering new quality productive forces. 

Fifth, we will continue to optimize the environment for foreign investment. Annual assessments will be conducted on the effective implementation of the "Opinions of the State Council on Further Optimizing the Business Environment for Foreign Investment and Increasing the Attraction of Foreign Investment," i.e. 24 measures for boosting foreign investment. Each policy and measure will be thoroughly implemented. In line with directives from the State Council, we are further refining the roundtable meeting system for foreign-funded enterprises, as well as the mechanism for handling complaints by foreign investors, providing timely assistance to enterprises in overcoming difficulties. This ensures that foreign enterprises enjoy national treatment in terms of access to production factors, qualification licensing, standards setting and government procurement, thereby sharing the dividends of China's reform and opening up.

That is all from me. Thank you.

Xing Huina:

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

CCTV:

The third plenary session of the 20th CPC Central Committee just wrapped up recently, at which the importance of accelerating the development of new drivers for foreign trade was emphasized. Could you share the key initiatives undertaken by the Ministry of Commerce in this field this year? What are the plans or initiatives we can expect?

Li Xingqian:

Developing new drivers for foreign trade is an initiative responsive to both the laws of the market and global demands. This approach aims to refine the structure of our foreign trade offerings, boost trade efficiency and more effectively cater to the production and living needs of end-users by deepening international cooperation and fostering innovative practices within supply chains. The export-import situation in the first half of the year indicates that China's foreign trade has achieved substantial gains in four aspects, which are also the focuses of our efforts to nurture new drivers for foreign trade.

First, cross-border e-commerce has been boosted in terms of both import and export. Utilizing cutting-edge technologies and adapting to emerging market demands, cross-border e-commerce stands as a dynamic component of foreign trade and is a business mode widely favored by consumers worldwide. In the first half of this year, around 9 million small parcels were exchanged daily between China and various countries, facilitating the rapid delivery of Chinese products to international customers and bringing an increasing array of premium goods to the Chinese market via cross-border e-commerce platforms. This year, the Ministry of Commerce, in collaboration with other relevant departments, has rolled out special policies to support cross-border e-commerce and has organized on-site meetings, hosted targeted training programs and initiated measures for brand development and the cultivation of business entities. Looking ahead, we will enhance exchanges in cross-border e-commerce, bolster supply-demand connections, engage more deeply in international cooperation, and continue to expand comprehensive pilot zones for cross-border e-commerce.

Second, green trade has become a growing trend. Green trade not only involves trading in eco-friendly, low-carbon products and services, but also entails the green and low-carbon transformation of all elements of the foreign trade supply chain — such as R&D, procurement, manufacturing, logistics and marketing. We released a handbook on green and low-carbon transformation for foreign trade enterprises in the first half of this year and intend to publish further guides. Moreover, we have conducted thematic trainings and are swiftly developing a public service platform for green trade, with the aim to diversify services for foreign trade enterprises. Moving forward, our aim is to research and enact specialized policies for fostering green trade, progressively build a robust support system for related initiatives, cultivate a conducive international environment, and enhance the capabilities of foreign trade enterprises in sustainable and low-carbon operations.

Third, the digitalization of trade has been accelerated. This year, the Ministry of Commerce, along with relevant departments, has been vigorously promoting the application of digital technologies within trade sectors, achieving a paperless cargo release rate of up to 90% at some ports. We have organized numerous exchanges on trade digitalization and examined methodologies to facilitate the utilization of electronic bills of lading in finance and other sectors. At the same time, we are encouraging global collaboration by initiating digital pilots that cover the whole process of international trade with our trade partners. Future steps involve supporting regional- and enterprise-level efforts to explore practical ways to fully digitize trade processes, guiding foreign trade participants toward proactive digital transformation, refining the systems for trade digitalization, and deepening cooperation and exchanges within the international trade realm.

Fourth, expanding imports provides new momentum and opportunities for our trading partners. Actively increasing imports is a significant step in further opening up to the world, contributing to global economic development and demonstrating China's commitment as a responsible major country. We have made significant strides in facilitating imports. In the first half of this year, China's import volume reached 9 trillion yuan, an increase of 5.2% year on year. Going forward, we will continue to leverage platforms like the CIIE, the China International Consumer Products Expo, and the import section of the Canton Fair. We will advance free trade agreement negotiations with relevant countries and regions and support increased imports of high-quality products, turning China's vast market into a global opportunity. Thank you.

Xing Huina:

The last question, please.

Xinhua News Agency:

Could you brief us on the key achievements of high-quality BRI cooperation in the economic and trade sectors and share future plans? Thank you.

Li Yongjie:

Thank you for your question. Since 2018, General Secretary Xi Jinping has made a series of important statements on promoting high-quality BRI cooperation, providing direction and a framework for economic and trade cooperation with Belt and Road partner countries. Conscientiously following and implementing his directives, we have made major progress in continuously deepening pragmatic economic and trade cooperation with partner countries. I'd like to elaborate on this by focusing on the following three aspects:

First, the scale of our cooperation has continued to expand. From 2018 to 2023, our trade in goods with BRI partner countries grew from $1.9 trillion to $2.8 trillion, representing an average annual growth rate of 8.1% and increasing the share of the total trade from 40.6% to 46.6%. In the first half of this year, our trade in goods with BRI countries reached $1.4 trillion, accounting for 47.4% of total trade. From 2018 to 2023, our cumulative direct investment in these countries reached $180 billion, with an average annual growth rate of 5.9%. In the first half of this year, our non-financial direct investment in these countries reached $15.46 billion, accounting for 21.3% of our total outbound investment. From 2018 to 2023, the cumulative value of newly signed construction contracts with partner countries reached $1.3 trillion, and the actual turnover of Chinese contractors reached $800 billion. In the first half of this year, these figures were $93.35 billion and $58.92 billion, respectively, both exceeding 80% of the total.

Second, the quality of our cooperation has been steadily improving. Our trade structure has been consistently optimized. We have expanded exports of equipment and component parts with partner countries, contributing to local industrial growth. For example, our exports of electronic components, general machinery equipment and medical equipment in the first half of the year have seen rapid growth. At the same time, we have actively expanded imports of agricultural and industrial products from partner countries, providing them greater access to China's vast market. For example, in the first half of the year, we saw rapid import growth in agricultural products like dried and fresh fruits, nuts, barley and wheat as well as industrial products like automobile components. Our cooperation with partner countries has also expanded into new areas. We've signed investment and cooperation agreements with 42 partner countries in green development, the digital economy, and the blue economy. Moreover, we are actively expanding industrial cooperation in areas such as new energy vehicles and photovoltaics. The number of partner countries participating in our Silk Road e-commerce program has grown to 33. The quality of our cooperation projects has also seen significant improvements. Besides the completion of landmark projects like the China-Laos Railway we have introduced various "small and beautiful" livelihood projects related to agriculture, education and health care. We continue to enhance sustainability in BRI development. In the first half of this year, the value of new contracts for energy-saving and environmentally friendly projects grew by nearly 70%.

Third, the form of our cooperation has been diversified. We have strengthened communication with partner countries through bilateral mechanisms. We have established trade facilitation working groups with 24 partner countries, investment cooperation working groups with 64 partner countries, and joint venture mechanisms for trade in services with seven partner countries. We have also signed economic and trade agreements to unlock institutional advantages. We have signed 15 free trade agreements with partner countries and recently concluded bilateral investment agreements with countries like Angola. We are also leveraging platforms such as exhibitions and forums to deepen cooperation. We have successfully hosted six editions of the CIIE, attracting over 7,000 enterprises from Belt and Road partner countries. Additionally, we have achieved fruitful results in advancing cooperation and deepening exchanges through the China-Arab Cooperation Forum and the China-Africa Cooperation Forum.

Going forward, MOFCOM will continue to implement the guiding principles of General Secretary Xi Jinping on BRI cooperation, the major reform initiatives from the third plenary session of the 20th CPC Central Committee, improve the mechanism for high-quality BRI cooperation, and carry out the eight major measures for supporting high-quality Belt and Road cooperation, delivering real and substantive results for all participants. Thank you.

Xing Huina:

Due to time constraints, today's press conference is hereby concluded. Thank you to the four speakers and friends from the media. Goodbye.

Translated and edited by Xu Xiaoxuan, Wang Yiming, Wang Qian, Liu Caiyi, Zhou Jing, Liu Sitong, Wang Yanfang, Yan Bin, Yan Xiaoqing, Yang Xi, Ma Yujia, Liao Jiaxin, Guo Yiming, Li Huiru, Wang Ziteng, Wang Wei, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Zhao Chenxin, vice chairman of the National Development and Reform Commission (NDRC)

Mr. Zhang Shixin, deputy secretary general of the NDRC

Mr. Yuan Da, deputy secretary general of the NDRC

Mr. Xiao Weiming, deputy secretary general of the NDRC

Chairperson:

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

Date:

Aug. 1, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Zhao Chenxin, vice chairman of the National Development and Reform Commission (NDRC), to brief you on relevant developments and answer your questions. Also present today are deputy secretaries general of the NDRC, Mr. Zhang Shixin, Mr. Yuan Da and Mr. Xiao Weiming.

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

Zhao Chenxin:

Thank you. Good morning. I am delighted to be here today alongside my three colleagues for this press conference.

Pursuing high-quality development is our top priority in the new era. Since the 18th National Congress of the Communist Party of China (CPC), the Party Central Committee with Comrade Xi Jinping at its core has pursued a strategy of national rejuvenation amid global changes of a magnitude not seen in a century, with a strategic vision, broad perspectives and deep commitment. High-quality development has been prioritized as the primary task in building China into a modern socialist country in all respects. By effectively leveraging reform and opening up as a crucial means, we have injected strong momentum into promoting high-quality development. The NDRC has diligently implemented the decisions and arrangements of the Party Central Committee and the State Council, faithfully fulfilling its duties of macro-management and comprehensive economic coordination. We have comprehensively deepened economic structural reforms, striving to pursue higher-quality economic growth and appropriately increase economic output. I would like to summarise our achievements in six aspects.

First, the macroeconomic governance system has continuously improved, significantly enhancing our economic strength. We have fully utilized the strategic guiding role of national development planning, and strengthened the coordination of fiscal, monetary, employment, industrial, investment, consumption, environmental protection and regional policies. Rigorous assessments of policy alignment with broader macroeconomic objectives have resulted in more forward-looking, targeted and effective macroeconomic regulation. Consequently, China's economic strength has reached new heights. In 2023, our GDP surpassed 126 trillion yuan (about $17.71 trillion); and for years, China has been the world's largest engine of economic growth, contributing over 30% to global growth.

Second, the science and technology innovation system has continuously improved, and the modern industrial system has grown robustly. We have continued to focus on developing the real economy. We have established a technology innovation system that enables enterprises to play a major role in innovation, guided by market demands and supported by universities, research institutes and end-users. We have actively advanced supply-side structural reforms, accelerated the transformation of traditional industries, fostered the growth of emerging sectors, continually optimized our industrial structure and accelerated the transformation of growth drivers. From 2013 to 2023, the value-added of high-tech manufacturing above designated size grew by an average of 10.3% annually, with China becoming the first country to have more than 4 million valid invention patents.

Third, the construction of our market system has achieved positive results, continuously energizing various business entities. Over the past decade, the building of a high-standard market system has steadily advanced, the market-based allocation of production factors has been deepened, a unified national market has been rapidly established, and the layout and structural adjustment of the state-owned sector have been improved. The system and mechanism for promoting the high-quality development of private businesses have been continuously improved. As a result, an institutional environment characterized by effective market mechanisms, vibrant microeconomic entities, and appropriate macroeconomic regulation has been gradually perfected.

Fourth, the establishment of a new system for an open economy has accelerated, and high-quality cooperation under the Belt and Road Initiative (BRI) has been solidly promoted. Over the past decade, a broader agenda of opening up across more areas and in greater depth has been advanced, continuously promoting institutional openness in rules, regulations, management and standards. The system of pre-establishment national treatment plus negative list for foreign investment has been fully implemented, accelerating the fostering of a world-class business environment that is market-oriented, law-based and internationalized. China has become a major trade partner for over 140 countries and regions and has signed more than 230 BRI cooperation documents with over 150 countries and more than 30 international organizations.

Fifth, reform and innovation in social programs have deeply progressed, continuously enhancing our capacity to ensure the people's well-being. Focusing on solving pressing difficulties and problems that concern the people most, we have introduced a series of reform measures in income distribution, employment, education, social security, elderly care, child care, health care and housing security. From 2013 to 2023, we have created over 140 million jobs in urban areas, and the per capita disposable income of residents has increased by an average of 6.2% annually in real terms. China has achieved the historic elimination of absolute poverty and built the world's largest education, social security and health care systems. Additionally, environmental protection in China has undergone historic, transformative and comprehensive changes.

Sixth, adhering to a holistic approach to national security, our capabilities to safeguard economic security have continued to improve. Our food production, purchase, storage, processing and sales systems have been continuously strengthened. Our total grain output in 2023 reached 1.39 trillion jin (695 million metric tons), achieving basic self-sufficiency of grain and absolute security of staple food. The energy revolution has been accelerated, continuously enhancing our green, low-carbon energy security capabilities. The installed capacity of renewable energy in 2023 exceeded 50% of the total installed power generation capacity nationwide. Moreover, China's newly-added installed capacity of renewable energy exceeded 50% of the global total. At the same time, China's industrial and supply chains became more self-supporting. The supply and prices of major commodities and raw materials have been kept stable in an effective and orderly manner. Data security capability building is continuously advancing, and the systems and mechanisms for financial risk prevention and control are gradually being perfected.

The present and the near future constitute a critical period for our endeavor to build a great country and move toward national rejuvenation on all fronts through Chinese modernization. We must continue to push forward with our reform efforts. We will thoroughly implement the principles of the third plenary session of the 20th CPC Central Committee and fully advance the major tasks of economic structural reform. We will focus on resolving bottlenecks and blockages that hinder high-quality development, as well as cultivating and enhancing endogenous driving forces for high-quality development. This approach aims to comprehensively promote Chinese modernization through high-quality development.

That concludes my introduction. My colleagues and I are now ready to take your questions. Thank you.

Shou Xiaoli: 

Thank you, Mr. Zhao, for the introduction. Now, the floor is open to questions. When asking your question, please begin by stating the media outlet you represent.

CCTV:

My question is for Mr. Zhao. Now that we're halfway through 2024, how would you assess the economic trends of the first six months? Additionally, what are your projections for the economy in the latter half of the year? Do you think macroeconomic policies need to be strengthened, and do you believe it's feasible to meet the economic growth targets set at the beginning of the year? Thank you.

Zhao Chenxin:

Thank you for your questions. Since the beginning of this year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China's economic performance has been generally stable with progress. It has continued its trend of recovery and improvement, with new momentum and new advantages developing rapidly. High-quality development is advancing steadily, and the overall social situation remains stable. Specifically, I would like to introduce three aspects: First, the economy is growing reliably. Agricultural production remains generally stable, industrial growth is rapid, and the service sector is developing steadily. Consumption, investment, and export demand are pulling together harmoniously. Major economic provinces continue to play a pivotal role in economic development, driving a 5% year-on-year increase in GDP in the first six months. Considering rising uncertainties in the external environment and domestic economic risks and challenges, such an achievement is truly remarkable. Second, there's a steady improvement in quality. This is reflected by the accelerated cultivation of new quality productive forces, the rapid advancement of green and low-carbon development, and the quickening transition from old to new growth drivers. Let me give you a figure: In the first half of the year, the added value of the high-tech manufacturing industry and equipment manufacturing above designated size increased by 8.7% and 7.8%, respectively. Third, people's livelihoods continue to improve. Employment conditions, residents' income, price levels, and basic public services are improving.

Regarding the economic trends in the second half of the year, which you are most interested in, we need to view them comprehensively and dialectically. On the one hand, we must recognize several challenges. These include the increasing adverse effects of changes in the external environment and insufficient domestic effective demand. We also face differentiation in economic operations and numerous risks and hidden dangers in key areas. Additionally, we must acknowledge the growing pains associated with transitioning from old to new driving forces. These difficulties and challenges stem from both the intertwined external environment and the necessary pains of economic structural reform and the push for high-quality development. Looking back at our history of economic development, we can see that China's economy has grown stronger by overcoming one difficulty after another. On the other hand, we should also acknowledge the accumulation of positive factors and favorable conditions in economic operations. Externally, international trade growth has somewhat recovered, and emerging economies are developing rapidly. This benefits Chinese enterprises by leveraging their advantages to expand into international markets. In terms of macroeconomic policy, major initiatives deployed by the CPC Central Committee and the State Council are accelerating. These include implementing major national strategies, building up security capacity in key areas, and initiating a new round of large-scale equipment renewals and trade-ins of consumer goods. Projects such as ultra-long-term special bonds, central budget investments, local government special bonds, and the 2023 additional national bonds are all speeding up, forming substantial work volumes. It can be said that there is still ample space for counter-cyclical policy adjustments. Regarding high-quality development trends, various regions are developing new quality productive forces suited to local conditions. Emerging industries such as new energy vehicles are developing well, future industries are being systematically laid out, new driving forces are rapidly growing, and the green transition of our development model is steadily advancing. Regarding development vitality, the third plenary session of the 20th CPC Central Committee has outlined a series of major reform measures. These will effectively address deep-seated institutional barriers and structural contradictions, greatly stimulating market entities' enthusiasm, initiative, and creativity.

As we've seen in the news, the third plenary session of the 20th CPC Central Committee emphasized the importance of remaining firmly committed to accomplishing this year's economic and social development goals. On July 30, just two days ago, the Political Bureau of the CPC Central Committee made plans for economic work in the second half of the year. We will firmly ensure the implementation of these decisions. The decisions and arrangements of the CPC Central Committee and the State Council are being implemented quickly. As these policies take effect, the foundation for continuous economic recovery will be enhanced and solidified. We have the conditions, abilities, confidence and determination to overcome problems or challenges during development and transformation. We are poised to accomplish this year's goals successfully and to a high standard.

That's all for my introduction. Thank you.

21st Century Business Herald:

The meeting of the Political Bureau of the CPC Central Committee proposed making good use of ultra-long special treasury bonds to support major national strategies and build up security capacity in key areas. What progress has been made in this respect? What is the situation with major project approvals? What considerations do you have for the future implementation of supporting major national strategies and building up security capacity in key areas? Thank you. 

Zhao Chenxin:

Mr. Zhang, please answer the questions.

Zhang Shixin:

Thank you for your questions. Issuing ultra-long special treasury bonds to support major national strategies and build up security capacity in key areas is a major strategic decision and deployment made by the CPC Central Committee and the State Council. It focuses on the overall situation of building a great country and achieving national rejuvenation. It is an important lever for promoting Chinese modernization, driving high-quality development, and taking an active approach to development.

Recently, in accordance with the decisions and requirements from a meeting of the Political Bureau of the CPC Central Committee and the State Council's video conference on mobilizing support for the construction of projects to implement major national strategies and build up security capacity in key areas, the NDRC continues to promote one-stop government services, and has established and refined a collaborative working mechanism with 30 departments and agencies. We aim to comprehensively advance key tasks in both "hard investments" and "soft construction," and ensure high-quality implementation across all aspects of these projects.

Regarding "hard investments," we have worked with relevant departments to organize projects from top to bottom, employing rigorous screening and selection criteria. Priority has been assigned to major landmark projects spanning regions and river basins, ensuring these initiatives effectively implement major national strategies and build up security capacity in key areas. Currently, the list for the first two batches of this year's projects has been issued, focusing on areas such as accelerating scientific and technological self-reliance and strength, promoting coordinated regional development, enhancing food and energy security, driving high-quality population development, and comprehensively advancing the Beautiful China Initiative. We are currently working diligently to ensure rapid fund allocation and expedite the commencement of project construction.

In terms of "soft construction," we are adhering to the principle of combining project development with supporting reforms. We are accelerating research and formulation of policies, plans, and innovations in systems and mechanisms as part of our "soft construction" reform measures, aiming to improve investment mechanisms and enhance investment efficiency. To date, we have promoted the issuance of a series of policy documents, such as those aimed at promoting the high-quality development of venture capital. Relevant policies, measures and long-term mechanisms are being continuously refined and improved.

Next, we will thoroughly study and implement the guiding principles from the third plenary session of the 20th CPC Central Committee, adhering to the principle of putting equal emphasis on quality and efficiency. We will diligently carry out the follow-up work of organize and select projects, enhance digital monitoring and daily coordination, and conduct timely on-site inspections to accelerate project initiation. Simultaneously, in conjunction with project investments, we will promptly formulate and issue supporting policies and reform measures for "soft construction," continuously optimizing institutional supply to promote the achievement of our goals. Thank you.

Reuters:

We have noticed that the recent meeting of the Political Bureau of the CPC Central Committee emphasized expanding domestic demand with a focus on boosting consumption. It suggested that policy efforts should shift toward improving people's livelihoods, promoting consumption, and increasing people's income. Additionally, the government has recently earmarked a portion of treasure bonds to fund consumer goods trade-in initiatives. We would like to ask if this indicates a policy adjustment, as previously, our policy focus was mainly on investment and supply-side measures. Moreover, could you predict whether the policies to promote consumption will take effect soon and whether they will help achieve this year's goals? Thank you.

Zhao Chenxin:

Let's invite Mr. Yuan to answer the question. 

Yuan Da:

Thank you for your questions. According to the arrangements of the CPC Central Committee and the State Council, the NDRC, in collaboration with relevant departments, has recently allocated approximately 300 billion yuan in ultra-long special treasury bonds to facilitate large-scale equipment renewal and encourage consumer goods trade-ins. This includes directly allocating around 150 billion yuan to local governments to support consumer goods trade-ins, allowing the "real benefits" of the policy to reach consumers more quickly and conveniently, thereby better meeting residents' needs for consumption upgrades. We believe the policy effects will gradually become apparent.

The Political Bureau of the CPC Central Committee recently held a meeting to make comprehensive arrangements for economic work in the second half of this year. Moving forward, the NDRC will work with relevant departments to fully implement all assigned tasks, including facilitating large-scale equipment renewal and encouraging consumer goods trade-ins. We will further deepen reform comprehensively with a view to advancing Chinese modernization, strengthen macro regulation, deepen innovation-driven development, tap into the potential of domestic demand, and reinforce the momentum for economic recovery and growth. We must remain firmly committed to accomplishing the goals for this year's economic and social development, and will focus on the following six areas:

First, we will speed up the implementation of landmark reform measures. We will take the economic structural reform as an engine of progress and promptly introduce a batch of mature and tangible reform measures. This includes launching guidelines for the development of a unified national market, releasing a new version of the negative list for market access, and creating a fairer and more dynamic market environment. We will actively cultivate new growth drivers for foreign trade, expand trade in intermediate goods and green trade, and make greater efforts to attract and utilize foreign investment.

Second, we will enhance the intensity and effectiveness of macro policies. Macro policies will continue to be forceful and more effective, with additional policies introduced as the situation changes, thereby continuously improving the capacity for policy implementation. We will coordinate efforts in "hard investments" and "soft construction," combining project construction with policy, planning, and mechanism development to accelerate the construction of projects that implement major national strategies and build up security capacity in key areas. The policies and measures to intensify support for initiatives facilitating large-scale equipment renewal and encouraging consumer goods trade-ins will be implemented and are expected to deliver substantial results as soon as possible.

Third, we will actively expand domestic demand. We will place greater emphasis on promoting consumption, encouraging the purchase of commodities such as automobiles and home appliances, and improving and expanding service consumption in education, elderly care, child care and domestic services. We will also support the high-quality development of cultural, sports, and tourism sectors, continuously optimize measures to facilitate two-way travel, and make it more convenient for foreigners to travel in China. Additionally, we will promote effective investment by advancing the construction of 102 key projects listed in the 14th Five-Year Plan, accelerating the issuance and use of special-purpose bonds for local governments, putting in place a new mechanism for cooperation between government and private capital, and further stimulating private investment. We will also coordinate efforts in new urbanization and all-around rural revitalization and promote the implementation of major regional strategies.

Fourth, we will accelerate the development of a modernized industrial system. We will foster new quality productive forces tailored to local conditions, step up efforts to secure breakthroughs in core technologies in key fields, make a big push to foster emerging industries and industries of the future, and promote the transformation and upgrading of key industries. We will accelerate the clean-up in outdated and inefficient production capacity, promote the full integration of the real economy and the digital economy, and effectively reduce logistics costs across society.

Fifth, we will defuse risks in key areas in a steady and orderly manner. We will ensure the implementation of the new policies aimed at promoting the stable and healthy development of the real estate market, intensify our efforts to ensure the handover of buildings, and speed up building the new development model of the property industry. We will implement a package of debt relief plans, and continue refining the specific measures in a targeted manner. We will also deal prudently with financial risks, so as to strengthen the systems that safeguard financial stability and effectively prevent and mitigate systemic financial risks.

Sixth, we will work harder to ensure and improve people's livelihoods. We will ensure employment for key groups such as college graduates, boost people's incomes through multiple channels, and deepen the reform of public services like elderly and child care. We will make efforts to implement the action plan for energy conservation and carbon reduction for 2024-2025. Moreover, we will ramp up efforts in preventing and responding to extreme weather events and natural disasters, and ensure power supply during peak periods in summer. Thank you.

China News Service:

Mr. Zhao has introduced the remarkable achievements made in reforming the economic system. Over the past few years, China's economy has been experiencing continued growth, and new scientific and technological breakthroughs are constantly being made. We can see that more policies have been adopted to support private businesses, and the application of new technologies are making people's lives more convenient. Public services and ecological environment are getting better and better. All these reflect the achievements of China's economic system reform. As such, what efforts will be made to build a high-standard socialist market economy? Thank you. 

Zhao Chenxin:

Thank you for your question. I think your concern is mainly about the reform of the economic system. As you mentioned, since the Third Plenary Session of the 18th CPC Central Committee, China has made remarkable achievements in its reform of the economic system. These are the result of our all-round and systemic efforts. Over the past few years, China's socialist market economy has become more systematic, mature and well-shaped, injecting strong impetus into high-quality development. However, we need to understand that there are still some problems to overcome in advancing high-quality development. I think this perfectly fits the saying that everyone knows so well — the development of our cause shows us what needs to be changed, while reform is the means by which we change it. The NDRC will implement the guiding principles of the Third Plenary Session of the 20th CPC Central Committee, and take the building of a high-standard socialist market economy as its top priority. We will promote reform of the economic system, and ensure the implementation of major tasks. While properly handling the relationship between the government and the market, we will strengthen the reform in key areas and major fields, and give full play to the role of the "invisible hand" of the market and the "visible hand" of the government. We will lift restrictions on the market while ensuring effective regulation, so as to add impetus and vitality to economic and social development. To this end, we will ramp up our efforts in two aspects. 

First, we will boost the vitality of enterprises under all forms of ownership with further reform, and work unswervingly both to consolidate and develop the public sector and to encourage, support and guide the development of the non-public sector. When it comes to the reform of state-owned enterprises (SOEs), we will strengthen and improve management over the public sector, setting up the guiding systems for improving the layout of the state-owned sector and adjusting its structure, so as to guide the public sector to invest more in major fields that are crucial for safeguarding national security, supporting sci-tech progress, improving the national economy and people's lives, and providing public services. When it comes to the private sector, we will fully implement guidelines and supporting measures for boosting development of the private sector. The NDRC is working with multiple departments on the formulation of a law to support the development of the private sector. By doing so, we aim to protect the property rights of private companies and the rights and interests of entrepreneurs in accordance with the law, and improve the system and mechanism for private enterprises to participate in national major strategies. This will also help address the pressing difficulties and problems that concern business entities most, such as market access, access to factors of production, and impartial law enforcement. Moreover, we will refine the modern corporate system with distinctive Chinese features, and cultivate more world-class enterprises. Through these measures, we will ensure that economic entities under all forms of ownership have equal access to factors of production in accordance with the law, compete in the market on an equal footing, and are protected by the law as equals, thus enabling them to complement each other and develop side by side.  

Second, we will further advance the reform of the market system in a bid to make the market environment fairer and more dynamic. We will continue to carry out reform tasks listed in the action plan for the development of a high-standard market system. First, we will reinforce the institutional foundation for the building of a high-standard market system. Efforts will be made in such areas as property rights protection, negative list for market access, fair competition, innovation across the board, and social credit. For example, the negative list for market access, adopted in 2018, has been revised three times, greatly reducing the number of items on the list, and removing many entry barriers that the public and enterprises are highly concerned about. This has helped to inspire vitality in the market. Going forward, we will promote the introduction of guidelines on improving the market access system and publish a new version of the market access negative list. Moreover, we will introduce a batch of special measures to relax market access in a bid to explore further relaxing market access nationwide and providing a broader development space for various business entities. Second, when it comes to the allocation of production factors, we will continue to advance the comprehensive reform trials for the market-based allocation of production factors, and improve the system for the market-based allocation of resources and environmental factors, so that advanced and high-quality production factors can flow smoothly and be allocated effectively toward the development of new quality productive forces. Third, in order to boost the flow of the economy, we will accelerate the building of a unified national market, and formulate guidelines for the construction of a unified national market, making greater efforts to break down barriers and constraints such as local protectionism and market segmentation. Through these measures, we will continuously unleash the internal driving forces and creativity of the whole of society, and inject a steady stream of momentum into the advancement of Chinese modernization.

That is all for my introduction. Thank you.

Hong Kong Bauhinia Magazine:

Recently, the NDRC published a notice on comprehensively implementing the regular issuance of real estate investment trusts (REITs) in the infrastructure sector. The move has attracted significant attention from the capital market. What are the main changes in the regular issuance mechanism compared to the policies in the pilot phase? Thank you.

Zhao Chenxin:

I'll give the floor to Mr. Zhang to address this question.

Zhang Shixin:

Thank you for this question. The NDRC recently published a notice to promote the regular issuance of REITs in the infrastructure sector. This represents a significant step towards further advancing institutional and mechanism reforms in investment and financing while simultaneously fostering the development of a multi-tiered capital market. The move signifies that infrastructure REITs with Chinese characteristics have officially entered a new phase of regularized issuance.

Since the pilot program was initiated in 2020, the NDRC has recommended 67 infrastructure REIT projects to the China Securities Regulatory Commission (CSRC), including those involving offering new shares. Among them, 44 projects have gone public, raising 128.5 billion yuan in funds. The net recovered funds used for new investment have exceeded 51 billion yuan. These funds could potentially lead to a total investment of more than 640 billion yuan in new projects. Over the four-year pilot period, China's infrastructure REITs have seen continuous improvement in institutional arrangements and regulations, sustained growth in issuance scale, and a constant increase in asset types. Market performance remains generally stable, and related parties have become increasingly proactive in participating. Infrastructure REITs are gradually playing a significant role in promoting institutional innovation of investment and financing, deepening capital market reforms, and supporting the real economy. Therefore, the transition to the regular issuance of infrastructure REITs is underpinned by a solid foundation.

Based on the experience of this pilot program, the notice aims to establish a mechanism for regularly issuing infrastructure REITs. Guided by market-oriented and law-based rules, the notice upholds the principle of enhancing related institutional arrangements, standards and regulations while comprehensively improving the application and recommendation mechanisms. The new changes can be summarized in the following four aspects. First, the government review process has become more focused, with clear boundaries established between the roles of the government and the market. The notice specifies that the NDRC's review work will primarily focus on the basic requirements of the programs, their alignment with macro policies, compliance with investment-related regulations, and the use of recovered funds. The NDRC will no longer impose requirements on matters that should be decided by the market and implemented by businesses. Second, infrastructure REITs have been expanded into more sectors to further boost market vitality. New assets, including environmentally friendly and highly efficient coal power plants and elderly care-related infrastructure projects, have been added. The NDRC has also appropriately relaxed the requirements concerning offering new shares of specific projects and those with large-scale initial public offerings (IPO). The utilization of recovered funds has also become more flexible. Third, project application and recommendation administration procedures have been streamlined to enhance operational efficiency. In addition to simplifying administrative procedures and eliminating early-stage counseling, the notice specifies that provincial development and reform commissions or central state-owned enterprises (SOEs) are now authorized to submit applications directly. Concurrent with this, specific time limits for each procedure have been established. Fourth, the distinction between powers and responsibilities has been further clarified to ensure project quality. Maintaining the consistency of powers and responsibilities and strictly implementing the project withdrawal mechanism to promptly retract ineligible projects is essential. Additionally, more punitive and deterrent measures will be taken against institutions and agencies, as well as counseling and reviewing organizations that violate related regulations.

Moving forward, the NDRC will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee. It will put into practice the decisions and plans of the Party Central Committee and the State Council and strengthen collaboration with the CSRC. Taking the publication of the notice as an opportunity, the NDRC will launch a series of programs on policy communication and interpretation. We will also expedite the establishment of supporting institutional arrangements and regulations while organizing training and exchange events. These efforts will facilitate the smooth implementation of regular issuance mechanisms for infrastructure REITs. Moreover, the NDRC will work to put idle funds to good use, further facilitate a sound flow of investment, and better leverage the capital market's role in supporting the real economy to bolster high-quality economic growth. Thank you.

Phoenix TV:

What progress has been made in building a unified national market? How does this initiative contribute to facilitating high-quality development? What additional measures will the NDRC take to advance this initiative further? Thank you.

Zhao Chenxin:

I'll give the floor to Mr. Xiao to address these questions.

Xiao Weiming:

Thank you for your questions. Building a unified national market is a crucial aspect of developing a high-standard socialist market economy. This initiative is closely related to people's lives, therefore drawing significant public attention. Mr. Zhao has already addressed some aspects of this initiative just now. In recent years, the NDRC has collaborated with related state organs and local governments in accordance with the decisions and plans of the CPC Central Committee and the State Council, particularly the requirements outlined in the guideline of the CPC Central Committee and the State Council to accelerate the establishment of a unified domestic market. Following the general principle of establishing the new before abolishing the old, the NDRC has implemented a unified approach encompassing planning, execution and oversight measures. As a result, there has been a significant increase in consensus across all sectors of society, and the initiative's effect is gradually taking shape, with specific progress seen in the following two aspects.

First, by "establishing the new," we aim to improve basic institutional arrangements concerning property rights protection, market access, fair competition and social credit. For example, new regulations for fair competition reviews have officially taken effect today, Aug. 1, representing a significant enhancement to our foundational legal framework. In addition, the number of restrictions in the country's negative list for market access has been cut from 151 in 2018 to 117, with further reductions expected. Moreover, China has also expedited the construction of high-quality integrated multidimensional transportation networks. Currently, China ranks first globally in terms of both the length of high-speed railways in service and the length of completed expressways. China has also completed the construction of the world's largest fiber-optic and mobile broadband network. All these infrastructure projects have contributed to a continuous decline in the ratio of social logistics costs to GDP, which reached 14.2% in the first half of this year, a year-on-year decrease of 0.3 percentage point. China has also completed unified registration of immovable property, with data-related basic institutional arrangements improving continuously. The national 12315 consumer dispute resolution public platform has come into operation, taking the capacity of a unified goods and services market to a higher level. Additionally, list-based management measures have been implemented for administrative penalties and enforcement actions related to market oversight.

Second, by "abolishing the old," we aim to remove obstacles that hinder the development of a unified national market through substantial efforts. We have established a system for rectifying problems, admonishing those responsible, and issuing notice of criticism to typical cases related to improper interventions with the construction of a unified national market. We work to identify and resolve problems, particularly with a focus on local protectionism and market segmentation, which are major concerns for market entities. Through rigorous investigation and corrective action, we have rectified a number of prominent problems in sectors such as government procurement, new energy vehicles, energy resources and pumped storage. Both businesses and the people have tangibly benefited from these initiatives. Furthermore, we have promoted some local practices in standardizing provincial tender documents and introducing negative lists for compiling these documents.

Looking ahead, we will resolutely follow the resolution adopted at the third plenary session of the 20th CPC Central Committee, collaborate with pertinent bodies to consolidate these achievements, accelerate the enhancement of fundamental systems that are vital for fostering a unified national market, and advance the construction of unified markets in pivotal areas such as transportation, commercial logistics and energy market. We will continue to rectify prominent problems in key areas and vigorously eliminate local protectionism as well as market segmentation. Our new progress made in establishing a unified national market will significantly boost the development of a high-level socialist market economy.

That's all from me. Thank you.

National Business Daily:

We are rather concerned about the development of the private economy. It has been over a year since the Opinions of the CPC Central Committee and the State Council on Promoting the Development and Growth of the Private Economy was published. What progress has been made in this regard over the past year? What steps will be taken next to further boost confidence in the growth of the private economy? Thank you.

Zhao Chenxin:

I would like to direct these questions to Mr. Yuan Da.

Yuan Da:

Thank you for your questions. As Mr. Zhao mentioned, we have been consistently upholding and fulfilling the commitments to the public and non-public sectors. Following the CPC Central Committee and the State Council's publication of the Opinions on Promoting the Development and Growth of the Private Economy last July, the NDRC along with related departments has diligently worked to implement these measures effectively, thereby bolstering the progress of the private economy. I would like to briefly outline some of these endeavors.

First, we have continuously optimized the business environment. We have moved faster to build a unified national market, conducted special campaigns to resolve the issue of overdue payments to enterprises, and established the national financing credit service platform and the platform for recommending projects to the private capital, among others. We have built sound communication mechanisms to facilitate regular interactions between the government and private businesses at the national, provincial, municipal and county levels. Significant meetings focusing on the private sector were organized across various locations such as Wuxi, Jinjiang in Quanzhou, Wenzhou and Shenzhen, where we took the initiative to make interpretations of relevant policies and promote experiences.

Second, we have made a concerted effort to enhance support of elements and resources. We have introduced and implemented 25 measures on providing financial support for the private economy and have continuously improved the unified markets for urban and rural construction land and professional talent.

Third, our commitment to the rule of law remains unyielding. We are continuously enhancing a legal system related to enterprises and advancing the formulation of a private sector promotion law. A number of major wrongful criminal cases concerning property rights have been corrected.

Through the joint efforts of all parties, the private economy has maintained steady and sound momentum. In the first half of the year, the industrial added value of private industrial enterprises above the designated size grew 5.7% year on year, 3.8 percentage points higher than the same period last year. RMB-denominated exports by private enterprises rose 10.7%, outpacing the overall export growth by 3.9 percentage points and elevating their share of the country's total exports to 64.9%, a year-on-year increase of 2.3 percentage points. As of the end of June, more than 55 million private enterprises had been registered, marking a year-on-year increase of 7.8%; the number of self-employed individuals reached 125 million, up 5.1% year on year; and the total number of private market entities surpassed 180 million, accounting for 96.4% of the total.

Looking ahead, the NDRC will thoroughly implement the decisions and plans of the third plenary session of the 20th CPC Central Committee, giving full play to the interdepartmental joint meeting mechanism for fostering the expansion of the private economy. We will remain committed to the guidelines and polices for providing a conducive environment as well as numerous opportunities for the private sector, and advance the sustained and healthy development of the private economy. First, we will bolster policy support. We will support capable private enterprises in leading national initiatives to make breakthroughs in major technologies and provide private enterprises with greater access to major national scientific research infrastructure. We will refine financing support policies for private businesses, build a sound credit enhancement system for small and medium-sized enterprises within the private sector, and speed up efforts to alleviate financing difficulties and high financing costs. Second, we will remove obstacles to market access. We will work to see that the competitive areas of infrastructure are open to market entities in a fair manner, improve the long-term mechanism by which private enterprises participate in major national projects, and cultivate an open, transparent, and convenient market access environment. Third, we will strengthen legal guarantees. We will formulate a private sector promotion law. We will improve the legal framework for the long-term regulation of charges levied on enterprises and for clearing overdue payments owed to them. We will work to bolster law enforcement and justice administration to protect property rights and establish an efficient system for the comprehensive management of intellectual property rights. Thank you.

Market News International:

The NDRC recently expressed support for high-quality Chinese companies to borrow medium- and long-term foreign debt. Which industries and fields will this policy be mostly focused on? Thank you.

Zhao Chenxin:

Thank you for your question. Borrowing foreign debt, particularly medium- and long-term foreign debt, is a very important aspect of effectively utilizing foreign capital and expanding bilateral openness in China. Recently, to further enhance the convenience of cross-border investment and financing for enterprises, the NDRC has issued a notice supporting high-quality enterprises in obtaining medium- and long-term foreign debt to promote high-quality development of the real economy. It proposes a series of practical measures and related requirements, including appropriate simplification of the approval and registration requirements, streamlining the procedures, and preventing risks associated with foreign debt.

I'd like to briefly introduce it further. We have two main considerations for high-quality enterprises subject to relevant policies and measures. On the one hand, we focus on enterprises with prominent industry status and good credit. We aim to support competitive and creditworthy enterprises by reasonably lending them medium- to long-term foreign debt. This improves capital use efficiency based on the basis of their main operating financial indicators and credit ratings. Our goal is to improve the quality and standing of Chinese enterprises' overseas bonds overall and reduce risks such as debt default. On the other hand, we consider enterprises that play a leading role in promoting the high-quality development of the real economy. We treat companies of all industries, fields and ownership types equally, in line with national macro regulation and industrial policies. We support more high-quality enterprises in borrowing foreign debt according to their business development needs. This approach aims to better leverage foreign debt funds to serve high-quality development.

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

Guangdong Radio and Television:

The Shenzhen-Zhongshan Link recently opened to traffic. What benefits will this bring to the development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA)? In recent years, the CPC Central Committee has deployed several major regional development strategies. What progress has been made? How will the NDRC work to promote the implementation of these strategies going forward?

Zhao Chenxin:

I will invite Mr. Xiao to answer your questions.

Xiao Weiming:

Thank you for your questions. The Shenzhen-Zhongshan Link is another major bridge spanning the Pearl River estuary. It's the latest super-large transportation project completed in the Guangdong-Hong Kong-Macao GBA, following the Hong Kong-Zhuhai-Macao Bridge. General Secretary Xi Jinping sent a congratulatory letter for its opening. The Shenzhen-Zhongshan Link is not only an important hub for infrastructure connectivity in the GBA but also a landmark project promoting the implementation of major regional strategies. Since its opening one month ago, traffic volume has exceeded 3 million vehicles, averaging 100,000 per day, accounting for nearly one-fourth of the total traffic volume across the Pearl River estuary. The driving time from Shenzhen to Zhongshan has been shortened from the original two hours to less than 30 minutes, and transportation between the east and west banks has become smoother. This has dramatically improved the flow of people and goods on both banks of the Pearl River estuary and has effectively promoted the advantages and leading role of east coast cities such as Shenzhen, injecting new impetus into the integrated development of the GBA.

Since the 18th CPC National Congress, General Secretary Xi Jinping has personally planned, deployed and promoted a series of major regional strategies. The NDRC, together with relevant authorities, has earnestly implemented these strategies. We have continuously established and improved institutional mechanisms for coordinated regional development. Our efforts have supported various regions in relying on their resource endowments and leveraging their comparative advantages. This approach has paved the way for a more reasonable division of labor and optimized regional development. As a result, we're creating a regional economic layout characterized by complementary advantages and high-quality development. Specifically:

In promoting the coordinated development of the Beijing-Tianjin-Hebei region, the main focus is on relieving Beijing of functions nonessential to its role as the capital. This approach drives the coordinated development of the region. At present, the CPC Beijing Municipal Committee, Beijing Municipal People's Congress, Beijing Municipal Committee of the Chinese People's Political Consultative Conference, Beijing Municipal People's Government, and more than 70 municipal government departments moved their offices to Beijing's sub-center, and nearly 30,000 personnel have moved to work there. Key municipal infrastructure in the start-up area in Xiong'an New Area has been completed and put into use. The first batch of universities, hospitals, and headquarters of China's central SOEs, which relocated from Beijing to Xiong'an New Area, are rapidly developing their new facilities.

Regarding the development of the Yangtze River Economic Belt, provinces and cities along the river have focused on jointly protecting the environment rather than large-scale development. They've systematically addressed sewage, garbage, chemical and agricultural non-point source pollution. The 10-year fishing ban is showing results, with the Yangtze's main channel achieving Grade II water quality for four consecutive years.

In terms of the construction of the Guangdong-Hong Kong-Macao GBA, convenient policies such as "Hong Kong Vehicles Heading North" and "Macao Vehicles Heading North" have been implemented more quickly. Major open cooperation platforms such as Hengqin, Qianhai, Hetao and Nansha have become more vibrant. Shopping trips to Shenzhen and Zhuhai have grown popular among Hong Kong and Macao residents.

Regarding the integrated development of the Yangtze River Delta, the combined GDP of Jiangsu, Anhui Zhejiang, and Shanghai remains about one-fourth of the national total. The industrial scale of integrated circuits, biomedicine and artificial intelligence accounts for three-fifths, one-third and one-third of China's total, respectively. The output of new energy vehicles accounts for two-fifths of the national total and one-fourth of the global total. The Yangtze River Delta has become an important engine of economic growth and a hub of innovation in China.

Hainan has achieved gratifying results in deepening reform, opening up across the board and building a free trade port.

In the Yellow River basin, efforts toward ecological conservation and high-quality development have shown notable progress. Ningxia Hui autonomous region has accelerated the construction of its pilot zone for ecological protection and high-quality development. Thanks to these efforts, the Yellow River's source again displays its "Thousand Lakes" beauty. The main channel of the Yellow River has maintained Grade II water quality for two consecutive years and has flowed continuously for 24 consecutive years. These achievements are remarkable.

Moving forward, the NDRC will speed up the implementation of issued policies and continue to plan and improve regional development strategies. We'll focus on implementation according to new circumstances and requirements, supporting all regions to better leverage their common and individual advantages. We aim to promote the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao GBA and other regions as drivers of high-quality development. We'll optimize systems and mechanisms for ecological protection and high-quality development in the Yangtze River Economic Belt and Yellow River basin. We will advance the high-standard, high-quality construction of Xiong'an New Area, accelerate Hainan Free Trade Port's development and cultivate a regional economic layout characterized by complementary advantages and high-quality development.

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

Shou Xiaoli:

There is great interest in development and reform work, and several reporters still have their hands raised. Due to time constraints, we'll take one last question.

ThePaper.cn:

How do you view the role of fixed asset investment in promoting high-quality development in recent years? What has the investment situation been like this year? What measures will be taken next to further expand effective investment? Thank you.

Zhao Chenxin:

Thank you for your questions; let me address them. I understand that your questions concern investment efforts, the investment situation and the role of government investment. We have always said that investment is the demand of the present and the supply of the future. In recent years, investment has played a very crucial role in stabilizing growth, adjusting structures, fostering new dynamics and preventing risks. Over the past decade, the total capital formation within China has contributed, on average, more than 40% to economic growth. Under considerable pressure of an economic downturn, it is even more important to leverage the key role of investment.

I will take this opportunity to also introduce the situation of government investment. Government investment plays a very important role in driving and amplifying effective investment, and it is also an important approach for us to address deficiencies, strengthen weak areas, solve difficult problems and handle practical issues. Let me lay out the specifics for you.

First, we have promoted projects that can help achieve strategic goals. The CPC Central Committee and the State Council have arranged a series of strategic tasks for high-quality development, involving some projects that are difficult to implement with social investment alone. For example, major projects such as power grids, high-speed railways, expressways and water conservancy projects span regions, river basins and fields. They require substantial funding, with coordination being very challenging. Their implementation can only be achieved through the driving and amplifying effects of government investment. Furthermore, although projects like national parks and those for green, low-carbon development have good social and ecological benefits, their direct economic benefits are not obvious, thus requiring government investment to guide and drive their implementation.

Second, we have promoted projects that improve people's welfare. From practice, it is evident that government investment plays a significant role in creating jobs, providing wage income and thereby driving consumption. For example, some journalists here have reported on the "work-for-relief" projects, where labor remuneration now accounts for more than 30% of funds earmarked for such investment projects in the central government budget; in 2023, the "work-for-relief" initiatives helped 2.53 million people gain employment, with an average income increase of over 14,000 yuan per person. Additionally, government investment has significantly supported a large number of projects in urban renewal, pollution prevention and control, elderly care, childcare, medical and health care as well as other areas related to people's livelihoods.

Third, we have promoted projects that solidify the foundation of security. The CPC Central Committee and the State Council have made significant arrangements concerning food security, energy security, and the security and stability of industrial and supply chains. Major projects such as high-standard cropland development and energy resource reserves require continuous, stable and large-scale financial investment. Government investment is indispensable in these areas. Government investment has played a very important role in expanding effective investment and has promoted high-quality development through the implementation of these projects.

Regarding the current investment situation that you are concerned about, investment has achieved stable growth, structural optimization and improved quality and efficiency this year. In the first half of the year, fixed asset investment increased by 3.9% year on year, with manufacturing investment growing by 9.5% and private investment rebounding to account for 51.9% of total investments. Moving forward, the NDRC will work with relevant parties to continuously enhance investment vitality through reform and innovation.

On one hand, we will fully leverage the driving and amplifying effects of government investment. We will establish a long-term mechanism for government investment to support the development of major projects that are of fundamental and far-reaching importance and serve the public interest, to coordinate the use of various types of government investment and to focus on guiding all parties to accelerate the cultivation of new development drivers. Specifically, we will make good use of ultra-long-term special government bonds and ensure the high-quality development of initiatives for implementing major national strategies and building up security capacity in key areas. We will effectively utilize the guiding and driving role of investments from the central government budget, accelerate the development of local government special bond projects, ensure the successful implementation of projects supported by funds raised from additional government bonds in 2023, promote the implementation of the 102 major projects under the 14th Five-Year Plan, and move faster to see more projects launched.

On the other hand, we will effectively mobilize the enthusiasm of private investment. We will improve mechanisms to stimulate and facilitate social capital investment, thereby driving the formation of a market-led mechanism for ensuring self-sustaining growth of effective investment. Specifically, we will make good use of the interdepartmental joint meeting mechanism to promote the development and expansion of the private economy, to implement a series of measures to encourage private investment, and to better implement the new mechanisms for government and social capital cooperation, continuously optimizing the investment environment and ensuring that private capital is confident, willing and able to invest. We will continue to recommend and introduce high-quality projects to private capital, a task that has been ongoing for some time, and will further promote the fair opening of competitive areas in infrastructure to business entities as well as support social capital in increasing investments in areas such as equipment upgrades, thus continuously expanding the investment space and allowing private investment to have choices as well as be able to invest effectively.

In short, we will maintain the current positive trends with stable investment growth, structural optimization, and quality and efficiency improvements, continuously leveraging the key role of effective investment and promoting high-quality development.

That's all for my answer, thank you.

Shou Xiaoli:

Thank you, Mr. Zhao, thank you to all the speakers, and thank you to all the journalists. That concludes today's press conference.

Translated and edited by Wang Yiming, Wang Qian, Liu Jianing, Ma Yujia, Mi Xingang, Wang Yanfang, Gong Yingchun, Huang Shan, Zhu Bochen, Zhou Jing, Wang Wei, Liao Jiaxin, Yan Bin, Li Huiru, Zhang Rui, Zhang Junmian, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Wang Dongwei, vice minister of finance

Mr. Lin Zechang, director general of the Comprehensive Department of the Ministry of Finance (MOF)

Mr. Wang Jianfan, director general of the Budget Department of the MOF

Mr. Fu Jinling, director general of the Department of Economic Construction of the MOF

Chairperson:

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

Date:

July 31, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Wang Dongwei, vice minister of finance, to brief you on relevant developments and answer your questions. Also present today are Mr. Lin Zechang, director general of the Comprehensive Department of the Ministry of Finance (MOF); Mr. Wang Jianfan, director general of the Budget Department of the MOF; and Mr. Fu Jinling, director general of the Department of Economic Construction of the MOF. 

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

Wang Dongwei:

Ladies and gentlemen, good morning. I am delighted to meet with you here to introduce how the MOF promotes high-quality development.

First, on behalf of the MOF, I would like to express my heartfelt gratitude for your long-term concern, support and assistance regarding our financial work.

General Secretary Xi Jinping has emphasized that pursuing high-quality development is our top priority in the new era. In recent years, the MOF has focused on this main goal of high-quality development by continuously optimizing financial policy, ensuring funding for strategic tasks, strengthening fiscal and taxation systems, and deepening international financial cooperation to pursue higher-quality economic growth and appropriately increase economic output. Here, I will introduce four key areas.

First, we have strengthened and improved macroeconomic regulation. We have implemented proactive fiscal policies, and utilized a combination of tools such as deficits, special-purpose bonds, financial subsidies, interest discounts, and tax measures to promote sustained economic recovery and growth. On the one hand, we have optimized and improved tax and fee reduction policies to help reduce the economic burden on businesses and enhance their growth potential. This year, we have further improved the precision and effectiveness of these policies, with a focus on supporting technological innovation and manufacturing development. On the other hand, we have prudently determined the deficit rate and effectively used special-purpose bonds for local governments and treasury bonds to provide necessary support for economic and social development. Since the 20th National Congress of the Communist Party of China (CPC), we have allocated an additional 11.35 trillion yuan in special-purpose bonds to support around 90,000 projects aimed at addressing weaknesses and improving people's well-being, thereby encouraging increased effective social investment. Last year, we issued an additional 1 trillion yuan in treasury bonds, with most projects now already underway. This year, we have allocated 1 trillion yuan in ultra-long-term treasury bonds to support the implementation of major national strategies, enhance security capabilities in key areas, and facilitate a new round of large-scale equipment upgrades and consumer goods trade-in programs. Meanwhile, we have also strengthened the coordination between fiscal, monetary and industrial policies to better leverage their effectiveness.

Second, we have focused on strengthening financial support for major national strategic tasks and essential public welfare by increasing investment in key areas such as science and technology, education, agriculture and rural development, and ecological protection. We aim to enhance high-quality development. We have diligently implemented the requirement that Party and government departments must run on lean budgets, being thrifty with small expenses and generous with significant ones, allocating more financial resources toward promoting development and safeguarding public welfare. In this year's budget, the top four areas of fiscal expenditure are education, social security and employment, agriculture, forestry and water resources, and health, accounting for nearly 50% of the total. Additionally, we have strongly supported greater self-reliance and strength in science and technology, significantly enhancing our country's innovation capacity, with our national innovation index ranking steadily rising to 10th globally. The level of public welfare continues to improve, with the minimum subsistence allowance for rural areas increasing by 73.3% since 2017, and the minimum subsistence allowance for urban areas rising by 45.4% on average. Basic old-age insurance covers nearly 1.1 billion people, and over 1.3 billion people are enrolled in medical insurance. The environmental sustainability of our economic development has continuously improved. Over the past decade, we have supported an average annual economic growth rate of 6.1%, with an average annual energy consumption growth rate of 3.3%. Since the 13th Five-Year Plan (2016-2020) period, the average PM2.5 concentration in cities at the prefecture level and above has decreased by 28.6%, and the proportion of surface water bodies with water quality rated "good" nationwide has increased by 21.6 percentage points. We can say that the skies are bluer, the mountains are greener, and the waters are clearer.

Third, we have focused on building a high-standard socialist market economy. We have continued to deepen reform of the fiscal and tax systems, aiming to inject vitality and boost momentum for high-quality development. The reform of the budget system has deepened comprehensively. The efficiency of fiscal resource allocation and the effectiveness of fund use have improved constantly. The sound tax system has been established. The system taxing personal income on the basis of both adjusted gross income and specific types of income has been optimized and refined. Reforms on value-added, consumption, resource, and environmental taxes have continued to advance. These efforts have accelerated the formation of a unified national market and facilitated economic transformation and upgrading. The fiscal relationship between the central and local governments has continued to improve. The system of transfer payments has operated more soundly, and incentive and constraint mechanisms through transfer payments have been set up to boost high-quality development. From 2022 to 2024, the central government transfer payments to local governments totaled approximately 30 trillion yuan, propelling coordinated regional development and ensuring equal access to basic public services.

Fourth, we have promoted alignment with high-standard international economic and trade rules, deeply engaged in global economic governance, and continuously promoted high-standard opening up. China's overall tariff level currently stands at 7.3%, lower than the 9.8% WTO accession commitment. We have applied lower temporary import tariff rates to about 1,000 products and implemented preferential conventional tariff rates with 32 countries and regions. This approach benefits our people with quality products and allows the global community to share opportunities created by China's development. We have implemented "zero tariff" and offshore duty-free shopping policies in Hainan province to boost openness. We have also pursued the Global Development Initiative, the Global Security Initiative, and the Global Civilization Initiative. Furthermore, we have actively participated in multilateral mechanisms such as the G20 and BRICS and promoted high-quality Belt and Road cooperation.

Moving forward, the MOF will fully implement the guiding principles from the 20th CPC National Congress, as well as the second and third plenary sessions of the 20th CPC Central Committee. We will also earnestly implement the deployments made at the meeting of the Political Bureau of the CPC Central Committee held on July 30. Our focus will be on continuously enhancing macro-fiscal control, deepening reform of the fiscal and tax systems, and improving the efficiency of fiscal governance. These efforts aim to maximize our financial sector's contribution to building a great country and moving toward national rejuvenation on all fronts.

Thank you for your attention. My colleagues and I are now ready to take your questions.

Xing Huina:

Before asking your question, please raise your hand and identify your news agency. 

CCTV:

We've noticed that issues such as advancing consumption tax reform and developing local tax systems have been widely discussed recently. Therefore, what specific plans does the MOF have for improving these tax systems? Thank you.

Wang Dongwei:

Thank you for your question. I've noticed the extensive media coverage of these issues, as well as the valuable insights and suggestions offered by experts and scholars.

Since the introduction of the tax revenue-sharing system in 1994, and especially following the third plenary session of the 18th CPC Central Committee, our fiscal and tax systems have continued to improve. The current local tax systems have gradually developed, playing a crucial role in ensuring financial strength of local governments and supporting sustained, healthy economic and social development. However, as China's economy is transitioning to a stage of high-quality development, we recognize that our local tax systems still require improvement. We need to optimize the structure and allocation of tax rights and address other prominent issues.

The third plenary session of the 20th CPC Central Committee has provided comprehensive arrangements and clear requirements for deepening fiscal and tax system reforms. I'll address your question in three aspects:

First, we will expand the sources of tax revenue at the local level. Currently, the central government collects excise tax, a major revenue generator, primarily at the production and import stages. We plan to move excise tax collection further down the production-to-consumption chain, with the power of collection steadily being passed to local governments. This transition will consider the division of revenue between central and local governments and tax administration capabilities. Implementation will be item-specific and phased, aiming to expand local revenue sources and encourage improvements in local consumption environments. We will look into rolling the urban maintenance and construction tax, education surcharges, and local education surcharges into one single local surtax. Local governments will have the authority to set the rate for this tax within a predetermined range. We also plan to reform the environmental protection tax to include volatile organic compounds in its scope.

Second, we will moderately expand local tax rights. In recent years, in legislations on local taxes, such as the Environmental Protection Tax law, Resource Tax Law, and the Tax Law on Farmland Used for Non-agricultural Purposes, provincial-level government has the authority to set the rate for these taxes within a predetermined range and implement tax deductions and exemptions, among other administrative rights. Moving forward, while maintaining the central government's unified legislation and the right to begin collecting certain types of taxes, we will explore ways to give more power to local authorities in determining elements of local tax systems and their implementation.

Third, we will regulate the management of non-tax revenue. Non-tax revenue primarily belongs to local authorities and is a crucial component of local financial resources. We plan to regulate the management of non-tax revenue, appropriately delegate some management authority to local governments and allow them to tailor their practices to local conditions. We will further reform the system of paid use for natural resources. All revenues generated on the basis of the exercise of administrative power, government credit, and state-owned resources and assets will be placed under government budget management. For toll highways, we will adhere to the "beneficiary pays" principle to optimize related policies.

Next, we will fully implement the tasks outlined in the third plenary session's resolution, thoroughly explore and assess specific reform plans as well as launch them once they are mature.

Thank you.

China Daily:

This year, extreme weather events have been frequent in China with many areas experiencing natural disasters, such as rainstorms and floods, and some provinces have even been severely impacted. Could you please elaborate on the work that the Ministry of Finance has done to support local disaster reduction and relief efforts? What are the considerations for the next steps? Thank you.

Wang Dongwei:

I will have my colleague, Mr. Fu Jinling, answer this question.

Fu Jinling:

Thank you for your questions. As you mentioned, since the start of this year's flood season, China has experienced 23 instances of widespread heavy rainfall, affecting over 20 provinces, autonomous regions and municipalities to varying degrees with torrential rains and floods. Some areas have even suffered from the impact of heavy rainfall repeatedly. In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, the Ministry of Finance has always adhered to the principles of putting people and their lives first. We have focused on three aspects: "building mechanisms, strengthening safeguards and prioritizing efficiency," effectively ensuring the safety of people's lives and property.

In terms of building mechanisms, the Ministry of Finance closely coordinates with the departments of emergency management, agriculture, water resources and transportation to establish three stable and efficient work mechanisms. This includes a disaster information sharing mechanism, a rapid approval and allocation mechanism for central natural disaster relief funds, and a tiered responsibility mechanism for post-disaster recovery and reconstruction. Each department closely monitors the occurrence, development and changes in natural disasters across regions, strengthens disaster reporting as well as conducts pre-research, anticipation and prediction in response preparation. Once a major natural disaster emergency response is initiated, the Ministry of Finance immediately disburses funds through the rapid approval and allocation mechanism for disaster relief funds, supporting local authorities in organizing timely rescue and relief efforts and properly resettling affected populations. After the disaster, efforts are accelerated to support recovery and reconstruction to quickly restore order to production and daily life in the affected areas.

In terms of strengthening safeguards, since the beginning of this year, the central government has allocated 11.5 billion yuan in disaster relief funds to localities, providing strong financial support. These funds include natural disaster relief funds for the relocation, settlement and emergency rescue of affected populations, agricultural disaster prevention and relief funds for restoring agricultural production, water conservancy disaster relief funds for repairing water-damaged water conservancy facilities, and funds for emergency road clearance and infrastructure construction. In 2023, an additional 1 trillion yuan in government bonds was issued, specifically for post-disaster recovery and reconstruction and enhancing disaster prevention, mitigation and relief capabilities, providing solid financial support for disaster prevention and mitigation efforts across the country this year.

In terms of prioritizing efficiency, since the beginning of this year, the Ministry of Finance has activated the rapid approval and allocation mechanism for natural disaster relief funds six times. The central natural disaster relief funds were disbursed within 24 hours following disasters such as the breach of the Dongting Lake dike in Yueyang, Hunan province, the outbreak of flash floods and mudslides in Ya'an, Sichuan province, and the collapse of a highway bridge due to torrential rains in Shangluo, Shaanxi province. This provided financial support to ensure that the affected populations had a place to stay, hot meals and clean drinking water. At the same time, the Ministry of Finance bears in mind that disaster relief funds are money for critical needs of the people, always strictly supervising its use as well as resolutely and seriously investigating and punishing any violations as soon as they are discovered.

China is currently in the critical flood control period from late July to early August, heightened by the active phase of typhoons, the flood control situation has become increasingly severe and complex. Next, the Ministry of Finance will resolutely implement the important speeches of General Secretary Xi Jinping and the guiding principles from the meeting of the Standing Committee of the Political Bureau of the CPC Central Committee on July 25. We will always maintain a tight focus on flood prevention and control, continue to strengthen close communication with relevant departments, carefully track the development and changes of the disaster situation, timely allocate disaster relief funds, and resolutely win the tough battle of flood prevention, control and disaster relief. Thank you.

South China Morning Post:

Many experts believe that the fiscal policy in the first half of the year was tight, leaving significant room for further action. Given that economic growth in the second quarter was below expectations, how will the financial department intensify its efforts in the second half of the year? Will there be large-scale stimulus or expansionary fiscal policies? Thank you.

Lin Zechang:

Thank you for your questions. In 2024, our proactive fiscal policies have been moderately strengthened, improved and made more efficient. Key arrangements were announced following the "two sessions," and since the beginning of this year, we've been actively implementing these decisions in line with the CPC Central Committee's directives, providing robust support for the economy's recovery and improvement.

I would like to share some figures with you. In the first half of the year, the national general public budget expenditure totaled 13.7 trillion yuan. Central government transfer payments to local governments reached 8.99 trillion yuan, accounting for 88.1% of the annual budget. The additional 1 trillion yuan in government bonds issued last year has been fully allocated to local governments and primarily invested in projects. As for this year's new local government bonds, 1.9 trillion yuan had been issued by July 26, with a focus on areas including new infrastructure and new industries, and special bond quotas are allocated to regions with well-prepared projects and high usage efficiency. Additionally, 1 trillion yuan in ultra-long-term special bonds has been allocated this year to support major projects, with 418 billion yuan issued by July 24. Meanwhile, we are strictly adhering to the requirement for Party government bodies to practice frugality, striving to be more efficient with government spending.

Various macroeconomic policies, including fiscal policies, are now showing results, bolstering internal momentum for economic development. The economy is stable and continues to advance steadily. In the first half of the year, GDP grew by 5% year on year. The trend of industrial transformation toward "new" and "green" is becoming more pronounced. Investments in high-tech industries increased by 10.6% year on year, while technological upgrades in manufacturing saw a 10% increase. These developments mark new progress in high-quality development.

Moving forward, we will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee and the recent meeting of the Political Bureau of the CPC Central Committee. We will intensify policy implementation to promote sustained economic recovery and improvement. Our focus will be on four key areas of work:

First, we will better leverage the amplifying effect of government investment. Based on needs and project readiness, we will issue and utilize ultra-long-term special government bonds on schedule. This proactive approach aims to support the implementation of major national strategies and enhance security capacity in key areas. We will guide local governments to expedite the issuance and use of special bonds, accelerate the deployment of additional government bond funds and central budget investments, and increase tangible outcomes.

Second, we will intensify efforts to promote large-scale equipment upgrades and the replacement of consumer goods. A notice has been issued to allocate approximately 300 billion yuan in ultra-long-term special government bond funds to support and advance these initiatives. We will actively collaborate with relevant departments to ensure the effective implementation of these measures.

Third, we will continue to strengthen basic living standards. This will be achieved by implementing fiscal and tax policies in areas such as employment, education, elderly care and healthcare, as well as enhancing financial support and reinforcing the safety net for people's livelihoods.

Fourth, we will strengthen fiscal revenue and expenditure management. We will strictly organize revenue collection in accordance with laws and regulations, and avoid excessive taxes and fees. We will rigorously control non-essential and non-priority expenditures to ensure that fiscal funds are used effectively. Additionally, we will enhance accountability across all levels of government to ensure stable management of local finances.

That's all from me. Thank you.

CNBC:

What changes has the directive of the third plenary session brought to the fiscal relationship between the central and local governments? In which areas are these changes mainly reflected? Thank you.

Wang Dongwei:

Mr. Wang Jianfan will answer your questions. 

Wang Jianfan:

Thank you for your questions. The fiscal relationship between the central and local governments is a fundamental component of our government structure's division of powers and responsibilities. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to the adjustment and improvement of this intergovernmental fiscal relationship. We've made advancements in deepening fiscal and tax system reforms, achieving multiple breakthroughs and significant progress. We've essentially completed reforms delineating fiscal powers and expenditure responsibilities in key areas. We've also made timely adjustments to revenue allocation between central and local governments, gradually improved the fiscal transfer payment system, and pushed forward with reforms of fiscal systems below the provincial level. Fiscal system reforms have been crucial in enhancing the central government's macroeconomic control capabilities, motivating local governments to drive economic development, and promoting the formation of a unified national market. These changes have effectively propelled sustained and healthy economic and social development.

The third plenary session of the 20th CPC Central Committee laid out a series of new directives for reforming and improving the fiscal relationship between the central and local governments, setting clear goals and directions for deepening fiscal system reform.

In terms of revenue division, we will place more fiscal resources at the disposal of local governments and will expand the sources of tax revenue at the local level. We will take steps to move excise tax collection further down the production-to-consumption chain, with the power of collection steadily being passed to local governments, while optimizing the ratio for taxes shared between the central and local governments. We'll standardize the management of non-tax revenues and appropriately delegate some non-tax revenue management authority to local governments, allowing them to implement differentiated management based on local conditions.

In terms of transfer payments, we will improve the system of transfer payments, overhaul special transfer payments, and increase the scale of general transfer payments. These will help ensure that the fiscal resources of prefecture- and county-level governments are commensurate with their powers. We will establish incentive and constraint mechanisms through transfer payments to promote high-quality development. We will focus on overhauling special transfer payments and increasing the scale of general transfer payments. This aligns with the goal of reforms to place more fiscal resources at the disposal of local governments.

Regarding the division of fiscal powers and expenditure responsibility, the central government will hold more fiscal powers as appropriate and raise the proportion of central government expenditure accordingly. In principle, the expenditures commensurate with such powers should be allocated from the central government, and such powers to be delegated to local governments should be reduced. No requirements for supporting funds from local governments in violation of regulations shall be made. When it is necessary to delegate fiscal powers to local governments, the relevant funds should be arranged through special transfer payments. 

Following the guiding principles of the third plenary session of the 20th CPC Central Committee, the MOF will make efforts to establish a fiscal relationship between the central and local governments that features well-defined powers and responsibilities and the appropriate allocation of resources, with an optimum balance between regions. We will ensure the implementation of reforms with relentless perseverance to keep the central and local governments fully motivated. Thank you.

China Financial and Economic News:

The resolution said that China will improve institutions and mechanisms for fostering new quality productive forces in line with local conditions, as well as the systems for promoting full integration between the real economy and the digital economy. Looking ahead, what kinds of proactive fiscal policies will be implemented to create new growth drivers and strengths? Thank you.

Wang Dongwei:

Thank you for your question. This is an important issue, and it's also a complex one. Our overall consideration is to effectively implement a series of fiscal and tax policies that support scientific and technological innovation, ultimately driving industrial upgrades. Let me briefly introduce five aspects of this approach:

First, we will focus on strengthening the foundation and targeting key areas to support and enhance technological innovation capabilities. We will continue to prioritize science and technology as a key area of fiscal expenditure. The central government earmarked 370.8 billion yuan toward science and technology expenditure in this year's budget, marking a 10% year-on-year increase. We will substantially support the integrated development of scientific and technological innovation and industrial innovation. We will continuously scale up investment in basic, applied and frontier research while refining the investment mechanism for basic research, which features a combination of competitive funding and stable support. Several major national sci-tech innovation projects will be launched. We will also strive to secure breakthroughs in core technologies within key fields, promote the integrated and clustered development of strategic emerging industries, and accelerate the cultivation and growth of future-oriented industries. 

Second, we will focus on expanding channels and boosting empowerment to promote the deep integration of the real and digital economies. A series of policies and measures have been introduced to support this integration. Here, I would like to introduce two pilot programs. First, we launched a three-year pilot program for the digital transformation of small- and medium-sized enterprises in 2023. This program will be rolled out in 90 cities in three phases. Currently, 66 cities have already begun implementing the pilot. The second program is to allocate 18 billion yuan, which will also be distributed in three batches, to support 60 cities in conducting pilot programs for new technological transformations in the manufacturing sector.

Third, we will focus on removing obstacles and boosting consumption to propel high-quality development in the service industry. Several pro-growth measures have been introduced to support a new round of large-scale equipment upgrades and consumer goods trade-ins. Ultra-long special treasury bonds have been issued recently, worth approximately 300 billion yuan. We will fully implement the decisions and deployments of the CPC Central Committee, enhance local governments' capabilities in promoting consumption, and foster new modes and new forms of consumer spending. In addition, we will improve the commercial circulation network layout and launch pilot programs for building modern commercial circulation systems. We will launch special funds dedicated to the disposal of waste electrical and electronic products, with a budget of 7.5 billion yuan this year, to promote recycling. We will allocate over 11 billion yuan to support demonstration projects in key overseas-oriented industries, such as electronic information, construction machinery, and medicine, improving the quality and efficiency of foreign trade.

Fourth, we will focus on strengthening weak links and improving efficiency to reinforce the development of modern infrastructure. We will comprehensively use policies such as additional issuance of treasury bonds, special local government bonds, vehicle purchase tax funds, and central government budget for investment, improving the quality and efficiency of infrastructure efforts. Since 2022, approximately 18 billion yuan has been allocated to support and reinforce national comprehensive freight hubs in 25 cities, and such work will continue this year. We will support the digital transformation of major expressways, improving their carrying capacity, traffic efficiency, and safety levels. Simultaneously, we will help about 200 counties nationwide boost development of rural charging and battery-swapping facilities, addressing the shortfall in infrastructure. This initiative will increase the consumption of new energy vehicles in rural areas.

Fifth, we will focus on tackling difficulties and removing choke points, so as to enhance the resilience and security of industrial and supply chains. We will support efforts to resolve bottleneck issues in industrial and supply chains by implementing a combination of policies. We will also provide support to boost key industrial chains such as integrated circuits, industrial machine tools, medical equipment, instruments, industrial software as well as basic software, and to build industrial and supply chains that are self-supporting and risk-controllable.

That's all for my answer. Thank you.

National Business Daily:

The State Council executive meeting studied boosting support for large-scale equipment upgrades and consumer goods trade-ins. What new measures will the central finance authorities take in this new round of equipment renewals and consumer goods trade-ins?

Wang Dongwei:

My colleague Mr. Fu Jinling will answer this question.

Fu Jinling:

Thank you for your question. This currently is a hot topic and a policy that is eagerly anticipated by people from all walks of life.

At the beginning of this year, General Secretary Xi Jinping presided over the fourth meeting of the Central Financial and Economic Affairs Commission, making comprehensive arrangements for large-scale equipment renewal and consumer goods trade-ins. Recently, the State Council held an executive meeting to make plans for boosting support in this regard. The MOF has been committed to implementing the decisions and plans of the CPC Central Committee and the State Council, researching and proposing a package of policies and measures. The ministry has made definite arrangements for the allocation of roughly 300 billion yuan in ultra-long special treasury bonds, increasing support in key areas with equipment renewal and further enhancing at the local level the capacity for consumer goods trade-ins. These efforts mainly focus on three aspects:

First, we will focus on greater efforts to boost investment and consumption confidence. We will provide further support for equipment renewal and replacement within key areas. For instance, in terms of automobile scrapping and renewal, for those who scrap passenger cars meeting certain criteria and then purchase new energy or fuel vehicles, we will increase the subsidy per vehicle from 10,000 yuan and 7,000 yuan to 20,000 yuan and 15,000 yuan, respectively, doubling the previous amounts. In terms of agricultural machinery scrapping and renewal, the subsidies for scrapping machinery like combined harvesters and seeders, and replacing them with the same type of machinery, will be increased by no more than 50% based on the current standards. In terms of loan interest subsidy, the interest discount for equipment renewal loans will be increased from 1 percentage point to 1.5 percentage points per annum, subsidized by the central government, further reducing financing costs for business entities.

Second, we will focus on meeting a wider range of investment and consumption needs. We will extend the support scope for equipment renewal to include the energy and power sectors as well as upgrading old elevators. We will also include in the support scope for consumer goods trade-ins the replacement of individual passenger cars, home appliances and electric bicycles, as well as the purchasing of materials for the renovation of old houses, kitchens and bathrooms, and home modifications for the elderly's convenience. These measures aim to better satisfy the people's needs of upgrading consumption and to continuously raise their quality of life.

Third, we will focus on better support to enhance the capacity for promoting consumption locally. Subsidy funds for the scrapping and renewal of cars and old operating freight vehicles, the renewal of new energy buses and their batteries as well as home appliance trade-ins will be jointly covered by the central and local finances in an overall ratio of 9:1. To be specific, the central finance will cover 85%, 90% and 95% of the subsidies in the eastern, central and western regions, respectively, significantly easing the local expenditure pressure. Additionally, local governments will be granted greater decision-making power. Apart from the categories with supporting standards clearly defined by the central financial authorities, a certain amount of funds will be allocated for local governments to conduct trade-ins for other categories of consumer goods in light of local conditions. The specific supported categories and standards will be determined by local governments to better unleash consumption potential.

That's all for my answer. Thank you.

ThePaper.cn:

Considering the current fiscal revenue and expenditure situation, how can local governments ensure a necessary level of spending intensity? What measures will the MOF take to better ensure sufficient fiscal strength of local governments? Thank you.

Wang Jianfan:

Thank you for your questions. From January to June, local general public budget revenue reached nearly 6.6 trillion yuan, with a year-on-year growth of 0.9%. The relatively small growth rate in the first half of the year can be attributed to several factors. First, tax deferrals for micro-, small and medium enterprises raised the base figure last year. Second, the continued decline in prices of some energy and mineral products has impacted the realization of general public budget revenue. Third, the policy introduced in the middle of last year to increase the special additional deductions for individual income tax has this year led to a delayed reduction in revenue. Additionally, land transfer revenue, which has garnered significant attention, amounted to 1.53 trillion yuan in the first half, a decrease from the same period last year but with a narrowing decline. Overall, local fiscal revenue growth showed a monthly rebound trend from January to June. During this period, local general public budget expenditures reached 11.8 trillion yuan. Monitoring indicates that expenditures for basic living needs, salary and governments function at the primary level are secure, and expenditures on key sectors such as social security, employment, education, agriculture, forestry and water resources are well protected.

Furthermore, as reflected in the 2024 budget report, the central government has increased transfer payments to local governments. The total central-to-local transfer payments for 2024 are 10.2 trillion yuan, with 8.99 trillion yuan already being allocated by the end of June, accounting for 88.1% of the total.

Comparing these figures, we see that in the first half of the year the central government allocated 8.99 trillion yuan in transfer payments, while local general public budget revenue was 6.6 trillion yuan and general public budget expenditures were 11.8 trillion yuan. From both the revenue and expenditure perspectives, fiscal resources are sufficient to cover expenditures.

In summary, local fiscal operations generally remain stable. Looking forward, the MOF will resolutely implement the decisions made at the third plenary session of the 20th Central Committee of the CPC, further deepen the reform of fiscal and taxation systems, improve the budget system, refine the fiscal transfer payment system and ensure that the fiscal resources of prefecture- and county-level governments are commensurate with their powers. Thank you.

Cnr.cn:

My question is about ensuring citizens' wellbeing. In recent years, China has invested significantly in society and people's livelihood, as was mentioned by the minister earlier. The third plenary session of the 20th Central Committee of the CPC also made new arrangements for ensuring the people's wellbeing. What work has the MOF done to promote a sound social security system and to support employment and medical services? Moving forward, what are the plans and considerations? Thank you.

Wang Dongwei:

I'll invite Mr. Lin Zechang to answer these questions.

Lin Zechang:

Thank you for your questions. Social security is closely tied to the people's wellbeing and social equity. Since the 18th CPC National Congress, the CPC Central Committee has placed the development of the social security system in an even more prominent position. In line with the decisions and deployments of the CPC Central Committee, the MOF has prioritized support for ensuring and enhancing the people's wellbeing, focusing on issues of concern to the general public. In 2023, nationwide fiscal expenditures on social security, employment and healthcare totaled 6.23 trillion yuan, accounting for 22.7% of the country's general public budget expenditures for the year. Pensions have steadily increased, and a multi-tiered and multi-pillar old-age insurance system has become more robust with a basic elderly care system taking initial shape. Subsidies for basic medical insurance have continued to be raised with the per capita government subsidies for basic medical insurance for rural and non-working urban residents increasing to 640 yuan, and the reimbursement rates for hospitalization expenses covered by basic medical insurance for urban employees and rural and non-working urban residents stabilized at 80% and 70%, respectively. Social assistance policies have become more targeted, with the average monthly standard for urban and rural subsistence allowances reaching, per person, 786 yuan and 621 yuan, respectively. The employment-first strategy has been fully implemented, promoting overall employment stability. Supporting policies on childbirth have been improved, and public-interest childcare service demonstration projects have been organized and carried out. In general, people's livelihood in fiscal funding arrangements has continued to be prioritized, ensuring people's living needs are better met.

The third plenary session of the 20th Central Committee of the CPC made new arrangements for ensuring people's wellbeing. The MOF will increase investment, improve mechanisms and work with relevant departments to effectively address the concerns of the people, in accordance with the requirements of the CPC Central Committee.

In terms of elderly care, we will improve the unified national management system for basic old-age insurance funds, refine the mechanisms for financing and adjusting benefits and gradually raise the basic pension benefits for rural and non-working urban residents under the basic old-age insurance scheme. We will provide supports to boost the supply of basic elderly services, work faster to shore up weaknesses in rural elderly care services and ensure that the basic elderly care needs of groups with special difficulties are met.

In terms of medical services, we will refine the mechanism for financing basic medical insurance for rural and non-working urban residents, deepen reforms of medical insurance payment methods, improve the unified management of major disease insurance and medical assistance scheme, and tighten oversight over medical insurance funds. We will improve the public health system and deepen the reform of public hospitals to see that they better serve the public interest. We will also strengthen the top-level design of the insurance schemes for long-term care.

In terms of employment, we will strengthen coordination and synergy with employment policies and make sure our efforts are aligned with them. We will enhance the employment support system for key groups, such as college graduates and migrant workers, develop a sound system for lifelong vocational skills training, and work hard to tackle structural unemployment.

In terms of childcare, we will improve the policy system and incentive mechanisms for boosting the birth rate, enhance the development of a public-benefit childcare service system, and strive to build a childbirth-friendly society.

That is all from me. Thank you.

N Video from Nanfang Metropolis Daily:

The MOF previously mentioned that more efforts will be made to strengthen coordination between fiscal and financial policies, allowing further leverage of fiscal funds. What measures will the MOF take to promote high-quality development of key areas such as micro and small enterprises, agriculture, rural areas, rural residents, and technological innovation? Thank you.

Wang Dongwei:

I will answer this question.

In recent years, while implementing proactive fiscal policies, we have placed great emphasis on coordinating with monetary, industrial and other related policies. We have effectively utilized tools such as fiscal interest subsidies, grants and subsidies, policy-based financing guarantees and policy-based finance, giving play to the leverage role of fiscal funds and encouraging more financial resources and nongovernmental investment into key areas such as modern industries, inclusive finance and green development. This approach promotes a high-level virtuous cycle among technology, industry and finance.

Here are a few points I'd like to introduce:

First, we will enhance the quality and effectiveness of the policy on providing subsidies for agricultural insurance premiums. In 2023, China's agricultural insurance premiums reached 140 billion yuan, among which nearly 80% were from government subsidies. This year, its agricultural insurance premiums are expected to reach 160 billion yuan. The agricultural insurance policy covers 16 bulk agricultural products, including grain, cotton and sugar, as well as over 500 local distinctive agricultural products, providing approximately 4.5 trillion yuan in risk protection for over 160 million farmer households. This year, the central government's budget for agricultural insurance premium subsidies is 56.2 billion yuan, with 19.3 billion yuan allocated for the comprehensive implementation of full cost insurance and planting income insurance for the three major staple grains (rice, corn and wheat) nationwide. In the second half of the year, we will also expand the coverage of full cost insurance and planting income insurance for soybeans in an orderly manner, to support and consolidate national food security and the supply of important agricultural products.

Second, we will strengthen government financing guarantees to support technological innovation. We have just launched a special guarantee plan to support technological innovation. By enhancing the risk-sharing and compensation efforts of the National Financing Guarantee Fund, we aim to encourage banks and policy guarantee institutions to strengthen financing support for technology-based small and medium-sized enterprises (SMEs). We have increased the maximum guarantee amount for a single enterprise from 10 million yuan to 30 million yuan, thereby mobilizing more financial resources to support technological innovation.

Third, we will better leverage the guiding role of government investment funds. Currently, the central authorities are supporting the development of government investment funds, such as the National Integrated Circuit Industry Investment Fund and the National Manufacturing Transformation and Upgrade Fund, to drive nongovernmental investment, thereby effectively supporting the implementation of major national strategies. For example, the National SME Development Fund, with a total scale of 35.7 billion yuan, has invested in 42 sub-funds, helping these projects raise more than 480 billion yuan in new equity financing. In addition, more than 70% of the fund has been invested in over 1,200 newly established SMEs. Moving forward, we will further enhance the leverage role of government investment funds to support the rapid development of new industries, new models and new growth drivers.

Fourth, we will thoroughly implement the policy of providing fiscal subsidies for interest payments, which is also a key measure for equipment renewal. The central government will pay 1.5% of the interest payments of those qualified business entities for two years. Totaling 20 billion yuan, such fiscal subsidies will support these business entities in equipment renewal and technological transformation, which are expected to drive related loan volumes to over 660 billion yuan. We will actively, prudently, and orderly advance the pilot program for providing loan interest subsidies to develop high-standard farmland, guiding more financial resources and nongovernmental investment into the agricultural sector.

Lastly, we will strengthen agricultural credit guarantee services. As of the end of June, there were 1.1 million agricultural credit guarantee projects nationwide, with an outstanding balance of 395 billion yuan. Moving forward, we will increase support for new agricultural business entities and make greater efforts to enhance credit guarantee services for the production of key agricultural products such as grain and soybean oil.

That is all from me. Thank you.

Xing Huina:

Thank you to all the speakers and participating journalists. Today's press conference will end here. Goodbye, everyone.

Translated and edited by Wang Yiming, Wang Qian, Liu Sitong, Wang Yanfang, Zhang Rui, Huang Shan, Qin Qi, Li Huiru, Lin Liyao, Zhang Junmian, Li Xiao, Wang Ziteng, Liu Caiyi, Wang Wei, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Zhao Zenglian, vice minister of the General Administration of Customs of China (GACC )  

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

Mr. Lin Shaobin, deputy director general of the Department of General Operation of the GACC

Chairperson:

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

Date:

July 30, 2024

Xing Huina: 

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we are joined by Mr. Zhao Zenglian, vice minister of the General Administration of Customs of China (GACC), who will brief you on relevant progress and take your questions. Also present at today's press conference are Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC; and Mr. Lin Shaobin, deputy director general of the Department of General Operation of the GACC.

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

Zhao Zenglian:

Thank you. Good morning. I would like to start by extending my appreciation for your long-standing interest in and support for our work concerning the customs sector. Also, a special thank you to everyone for attending the press conference on a rainy day.

On Sept. 11 last year, in a letter replying to workers in the Khunjerab Pass, a land port on the China-Pakistan border in China's Xinjiang, General Secretary Xi Jinping specified the duties and missions of customs authorities in safeguarding borders and driving development. He emphasized that customs authorities should uphold security at the nation's borders while promoting high-quality development and high-level opening-up. This provides overall guidance and principles for the work of the customs sector. Since the 18th National Congress of the Communist Party of China (CPC) in 2012, customs authorities have strived to create a new chapter in high-quality development, making specific progress in the following aspects.

Safeguarding borders means firmly guarding the red line of border security and providing strong support for achieving high-quality development.

Specifically, customs authorities have resolutely safeguarded people's well-being and safety by strictly enhancing border health and quarantine work, which serves as the first line of defense, and by implementing stringent inspections for imported foods and merchandise. In the first half of the year, customs authorities nationwide identified a total of 29,000 cases of infectious diseases and more than 30,000 batches of food and merchandise that failed to meet health certification standards.

We have resolutely safeguarded the country's biosecurity at the nation's borders and strictly prevented the introduction of alien invasive species. In the first half of the year, customs authorities nationwide intercepted pests a total of 37,000 times.

We have resolutely safeguarded political, economic and comprehensive security at ports, strengthened port supervision, comprehensively enhanced tax administration, and maintained a tough stance against trafficking. In the first half of the year, customs authorities nationwide supervised a total of 2.73 billion metric tons of imports and exports, collected 1.05 trillion yuan (about $145.3 billion) in tax, and filed and investigated over 3,000 cases of smuggling offences and crimes, with a value in excess of 54 billion yuan.

We have also resolutely applied a holistic approach to national security, shouldered our political responsibility of safeguarding border security in a steadfast manner, and firmly protected the defense line at ports, the red line of supervision, as well as the fundamentals of security.

In addition, driving development means continuously reforming and improving customs supervision mechanisms and institutional arrangements, while enhancing supervision efficiency and service capacity. The aim is to contribute customs authorities' wisdom and strength to achieving high-quality development.

Specifically, customs authorities have introduced more high-quality policy measures. In recent years, we have rolled out nine policy packages in succession, comprising a total of 209 measures, to ease business difficulties, facilitate foreign trade and stabilize growth. We have also introduced 12 policy packages, containing 227 measures, to enhance regional coordination.

We have strived to foster a world-class port-based business environment that is market-oriented, law-based and internationalized. In collaboration with relevant government bodies and local governments, we have launched special initiatives for cross-border trade facilitation for seven consecutive years. This year's initiative has already been carried out in an orderly manner across 13 provinces, districts and municipalities, and 20 cities.

We have strived to build high-level opening-up platforms. We have continuously enhanced innovation in customs supervision mechanisms concerning comprehensive bonded zones and pilot free trade zones (FTZs). We have also provided strong support for the establishment of new hubs for opening-up, such as the Hainan Free Trade Port, the Guangdong-Macao In-depth Cooperation Zone in Hengqin, and the Shanghai Eastern Hub International Business Cooperation Zone. Among the seven batches of pilot FTZ development experiences that the State Council has deemed applicable to other regions, customs authorities have contributed over 38%.

We have also expedited the development of new growth drivers in foreign trade. We have advanced reforms in customs supervision for cross-border e-commerce, and supported the development of new business forms such as those involving market procurement, overseas warehouses and bonded maintenance. Additionally, we have taken a more proactive approach in providing service for trade involving the "new trio," namely, electric vehicles, lithium-ion batteries and photovoltaic products, as well as intermediate goods.

Since the 18th CPC National Congress, China's foreign trade has grown by an average of 1.6 trillion yuan annually, an amount equivalent to the yearly foreign trade volume of a medium-sized country. China has topped the world in total volume of trade in goods for seven consecutive years, becoming a major trade partner for more than 150 countries and regions. Currently, the number of foreign trade businesses in the country has doubled compared to 2012. Exports of automobiles, integrated circuits and lithium-ion batteries, which are high-tech and green products with more added-value, have increased in 2023 by 730%, 180% and 1,520%, respectively, compared to 2012. These statistics objectively prove that since the 18th CPC National Congress, the scale of China's foreign trade has increased, its structure has improved, and its vibrancy has enhanced.

Reform is crucial in fulfilling our dual mission of safeguarding our borders and promoting growth, while also driving high-quality development.

The GACC has evolved through opening up and thrived on reform. Over the past 46 years, reform has been the cornerstone of our operations. We have progressed from paper-based to paperless clearance, from mutual exchange of information, mutual recognition of inspection results and mutual assistance in law enforcement to nationwide integrated clearance. Customs, inspection, and quarantine procedures, which used to involve two separate enforcement actions and two sets of procedures, are now streamlined into a single declaration, inspection, and release process. Reform has consistently empowered and enhanced customs supervision and clearance processes, significantly improving the safety, efficiency, and speed of procedures for goods, items, postal parcels, and personnel. We have largely achieved the reform goals of effective control, liberalized processes, and rapid clearance. These improvements have significantly enhanced the sense of security and satisfaction among businesses and the public.

The third plenary session of the 20th CPC Central Committee has made sound plans and systematic arrangements for further deepening reform comprehensively to advance Chinese modernization. In response, the GACC has swiftly mobilized. Last week, our Party committee organized a special meeting to discuss implementation, followed by a two-day training session for customs leaders nationwide. We've aligned our reforms with the broader context of China's modernization, focusing on intelligent customs systems. Our goal is to modernize customs services further, boosting China's modernization.

That's all for my introduction. Next, my two colleagues and I are ready to answer your questions. Thank you!

Xing Huina:

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

CMG:

During your introduction, you described China's foreign trade as larger in size, more optimized in structure, and stronger in vitality since the 18th CPC National Congress in 2012. Could you further elaborate on this? How should we understand the high-quality development of China's foreign trade? Thank you.

Zhao Zenglian:

Thank you for your question. China's foreign trade volume has grown remarkably since the 18th CPC National Congress in 2012. By 2023, the total value of imports and exports increased by over 17 trillion yuan ($2.34 trillion) compared to 2012 – a figure comparable to the annual trade volume of a leading global trade nation. During the same period, the total volume of goods under customs supervision also grew by 54.5%. As we enter the new era, the focus has shifted toward high-quality development as China's foreign trade continues to expand. I'd like to elaborate on this by focusing on the following aspects:

First, innovation has strengthened the foundation of China's foreign trade development. In 2023, exports of high-tech products increased by 6% year on year, comprising 18.7% of total export value. Independent and innovative brands have enabled Chinese products to gain rising popularity overseas, ranging from traditional horse-faced skirts to multifunctional electronic products. Independently branded product exports grew by 9.3% in 2023, accounting for 21% of overall exports. 

Moreover, sustainability has become a hallmark of China's high-quality foreign trade development. Four of every 10 exported cars are electric, seven of every 10 exported railway locomotives are electric, and nearly 90% of exported batteries are lithium-ion. These figures demonstrate the sustainable nature of China's exports.

Recently, some have made exaggerated claims about supposed "overcapacity" in China's new energy industry. This is actually a false proposition that neither aligns with reality nor conforms to the laws of economic development. Take new energy vehicles, for example. The International Energy Agency estimates global electric vehicle (EV) sales will reach about 45 million units by the end of 2030. This figure is three times the global EV sales volume and five times China's EV production volume in 2023. Far from being in surplus, China's new energy products enrich the global supply of green goods and contribute to the global fight against climate change. The third plenary session of the 20th CPC Central Committee has further specified institutional guarantees for green development. In the future, China's green industry is bound to develop even better.

Third, coordinated regional development has consolidated the foundation of foreign trade. The eastern region remains pivotal to China's foreign trade, with total imports and exports exceeding 30 trillion yuan for three consecutive years. The central and western regions have effectively undertaken the country's industrial transfer, with the share of foreign trade increasing by nearly 7 percentage points. The three northeastern provinces have seen expanded foreign trade, with a growth rate nearly 1.6 percentage points faster than the national average. The Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area and other major regional development strategies have become the main driving force of foreign trade, contributing nearly 60% of foreign trade growth since the 18th CPC National Congress in 2012.

China's pursuit of high-quality development has also provided our global trading partners with extensive market opportunities. The customs authorities have steadfastly implemented strategies to increase imports, expanding market access in an orderly manner. At present, more than 500,000 foreign companies are now registered with the GACC to import food and agricultural products. Since the 18th CPC National Congress, our country has seen its cumulative imports surpass 150 trillion yuan, achieving an average annual growth rate of 4.2%. Notably, there has been rapid growth in imports of consumer goods, including fruits, cosmetics, and maternal and infant products. The fundamental principle I aim to highlight is that the development of foreign trade is not founded on unilateral protectionism but on openness and cooperation that benefit all parties involved. The "small yards with high walls " strategy leads to nothing but self-isolation. The path to prosperity and progressive development inevitably lies in openness and sharing.

Moving forward, in accordance with the arrangements and requirements set forth by the third plenary session of the 20th CPC Central Committee, Chinese customs authorities will work toward new heights in institutional openness, continue to advance innovative policies and regulatory reforms in comprehensive bonded zones, optimize the innovation mechanism for the customs supervisory system in pilot free trade zones, and establish customs regulatory models that meet the demands of new quality productive forces. Our efforts aim to nurture a regulatory environment conducive to new business forms and models, including cross-border e-commerce, overseas warehousing, market procurement, and bonded maintenance. We will also strengthen research into foreign technical measures in trade and fully leverage customs' international cooperation consultation mechanisms. We will strive to eliminate unreasonable foreign technical trade measures, safeguard business entities engaged in foreign trade, and promote the sustainable, high-quality development of foreign trade. Thank you.

Phoenix TV:

We are interested in imports. In recent years, China has launched a series of policies to actively expand imports. The country has also ranked as the world's second-largest importer for many consecutive years. Could you elaborate on how China intends to share its development opportunities with the world through expanding imports? What specific measures and plans have the customs authorities implemented to expand imports? Thank you.

Zhao Zenglian:

You've raised excellent questions. There's a well-known saying, "A single flower does not herald spring; it is when a hundred flowers bloom that spring truly arrives in the garden." I would like to invite my colleague Mr. Lyu to answer your questions.

Lyu Daliang:

Since the 18th CPC National Congress, our country has implemented policies and measures to actively expand imports. Notably, we have established the world's first national import-themed expo, the China International Import Expo (CIIE), held annually for six consecutive years. The expo, celebrated as the "golden gateway" to the Chinese market, vividly demonstrates our commitment to sharing our development achievements with the world. We have expanded market access in an orderly manner, including approving the import of 477 varieties of high-quality agricultural products based on scientific assessments. We have also unilaterally opened our markets wider to the least developed countries, aimed at promoting mutual growth. Additionally, we have voluntarily reduced tariffs, resulting in the country's overall tariff level of 7.3%, which aligns closely with the average level of developed countries.

According to statistics, our efforts to expand imports have yielded substantial results. As previously noted, China has maintained its position as the second-largest importer for many years, with total imports rising from 11.49 trillion yuan in 2012 to 17.99 trillion yuan in 2023. Our consumer market continues to grow, driving cumulative imports of consumer goods to surpass 16 trillion yuan. The opportunities provided by the Chinese market benefit countries worldwide. In 2023, our imports originated from over 200 countries and regions worldwide, with imports of agricultural and electromechanical products from the least developed countries doubling from 2012.

We have implemented various measures to fulfil the national directive to expand imports. For instance, we have tailored clearance facilitation measures for each CIIE. Since the inaugural 2018 CIIE, we have introduced the innovative measure to support bonded exhibition and trading on an ongoing basis, effectively making the expo's effects permanent. We have refined inspection and supervision procedures for bulk commodities such as energy resources. By adopting the "release before inspection" approach for low-risk mineral products, we have effectively reduced clearance time. For high-tech items requiring vacuum packing, light-proof packaging, or constant temperature storage, we have introduced a new supervisory model that minimizes port interventions, enhancing the security and efficiency of customs clearance. Additionally, we have established a "green channel" for fresh agricultural products and expedited port clearance for them, ensuring that imported fresh produce retains its freshness for longer.

The third plenary session of the 20th CPC Central Committee emphasized the need to seize the initiative by opening China's commodity, services, capital, and labor markets wider to the outside world in an orderly manner. China's door will only open wider. Moving forward, the customs authorities will implement the decisions and plans of the Party Central Committee, further innovate the supervision of import clearance and support the development of key open platforms, such as the CIIE and the China International Consumer Products Expo. Recently, we introduced the Facilitation Measures of the Customs for the Seventh China International Import Expo of 2024 and released the Customs Clearance Notice to facilitate smooth customs clearance for participating enterprises. We will also take prudent and well-ordered steps to expand market access for agricultural and food products, innovate inspection and quarantine modes as well as broaden the scope of pilot programs for "release before inspection" and third-party certification. This will provide improved customs clearance supervision and services, support the expansion of imports and turn China's huge market into a significant opportunity for the world.

That's all for my answer. Thank you.

Zhinews of Shenzhen Satellite TV:

Special customs supervision zones, with comprehensive bonded zones as the mainstay, are crucial platforms for the high-quality development of China's foreign trade. Could you please provide some information on this topic? What are the plans for the next steps? Thank you.

Zhao Zenglian:

I would like to invite Mr. Lin to answer. 

Lin Shaobin:

Thank you for your questions. Since the launch of reform and opening up, China has established six types of special customs supervision zones: bonded zones, export processing zones, bonded logistics parks, cross-border industrial zones, bonded port zones and comprehensive bonded zones. As mentioned by the reporter, these special customs supervision zones are key platforms for the high-quality development of China's foreign trade. The proportion of import and export value through these zones has increased from 2013 to 19.2% in 2023. These zones contributed nearly one-fifth of the country's total import and export value while occupying less than 0.005% of the national land area. Since the third plenary session of the 18th CPC Central Committee, we have actively promoted the integration of these special supervision zones into comprehensive bonded zones. Currently, there are 172 special customs supervision zones nationwide, including 165 comprehensive bonded zones. Comprehensive bonded zones have three main advantages, which I will briefly introduce.

First, comprehensive bonded zones offer a full range of business functions. These zones can engage in various activities such as processing and manufacturing, cross-border e-commerce and bonded maintenance. They are shifting from a model focused solely on external activities to one of two-way openness, both inward and outward. For example, according to the current national maintenance product catalog, bonded maintenance services can now be carried out within the zones. We have fostered the coordinated development of comprehensive bonded zones and free-trade zones, and supported enterprises in developing bonded aviation maintenance services. For instance, at Xiamen Port bonded aviation maintenance services achieved an import and export value exceeding 160 billion yuan in 2023, serving over 100 airlines across dozens of countries and regions, and delivering excellent results.

Second, comprehensive bonded zones benefit from favorable tax policies. These zones enjoy various tax incentives, including bonded policies, tax rebates and tax exemptions. Goods entering the zones from abroad are subject to bonded policies. Goods entering the zones from domestic areas are treated as exports and are eligible for tax rebates. Additionally, machinery, equipment and office supplies needed for production within the zones are exempt from import duties and value-added taxes.

Third, comprehensive bonded zones facilitate the circulation of goods. Over the years, the customs authorities have continuously reformed and innovated their supervision and service methods. On one hand, enterprises within the zones can easily transfer bonded goods through account management. On the other hand, enterprises can use vehicles of their own choosing, allowing bonded goods to move conveniently between different zones. The advantages in processing and logistics within comprehensive bonded zones have attracted clusters of advanced manufacturing industries, such as the electronic information manufacturing industry. For example, Chongqing, leveraging its comprehensive bonded zones, has achieved the highest global production and sales volume of laptop computers for eight consecutive years.

The third plenary session of the 20th CPC Central Committee emphasized the need to develop new institutions for a higher-standard open economy. Moving forward, the customs authorities will continue to enhance the vitality and competitiveness of comprehensive bonded zones by focusing on five aspects: policy supply, function expansion, procedure simplification, process optimization and system improvement. Our goal is to elevate the development of comprehensive bonded zones to higher levels, broader dimensions and deeper fields. Thank you.

The Poster News APP:

The business environment at ports directly impacts the efficiency of international trade. What measures has the customs administration implemented to enhance the business environment at ports, and what plans are in place for further improvement in this area? Thank you.

Zhao Zenglian:

Thank you for your question. As the lead agency in optimizing the port business environment, the GACC has spearheaded a special campaign to enhance cross-border trade for seven consecutive years. We've collaborated closely with relevant departments and local governments, expanding our pilot program to 20 cities. Our efforts have focused on four key areas: implementing effective policies and measures, upgrading services, strengthening hardware, and building a platform.

We have implemented effective and practical policies and measures. For instance, we've established "green channels" for expedited customs clearance of fresh agricultural products, enabling priority inspection and prompt passage through customs for these items. As a result, imported cherries in the Beijing-Tianjin-Hebei region can now reach related wholesale markets from the port within five hours. Furthermore, we've eliminated the quarantine inspection requirement for seven categories of animal and plant products, including fresh vegetables and plant-derived Chinese medicinal herbs. This has significantly reduced the time and cost for enterprises during the customs clearance process.

Upgrading services means we have constantly optimized the supervision model and customs clearance procedures. For example, we introduced "ship side delivery" and "direct loading at port" so enterprises can unload their imported goods or load exported goods after completing relevant procedures in advance. We have innovated a linked unloading supervision model and realized a direct connection between goods from ports along the Yangtze River and Shanghai Yangshan Port. As a result, the transportation time for segments within China's borders has been reduced by half, and logistics costs have decreased by one-third. We also implemented the reform of "one-stop laboratory testing," streamlining procedures for tax-related tests with different requirements into a process of "sampling once, submitting for testing once, and receiving results once."

Strengthening hardware means we use advanced facilities and equipment as well as next-generation digital technologies to improve the efficiency of supervision. For example, we use unmanned aerial vehicles (UAVs) to assist customs officers in checking grain and other bulk commodities. UAVs can fly directly into a ship's hold to fetch samples, and robots can replace or assist customs officers in inspecting hazardous goods with risks of explosion, leakage or biosafety. We are implementing a port modernization project. Currently, 56 ports in 21 regions are being transformed into smart ports.

Building a platform refers to creating a comprehensive cross-border service platform featuring "one-stop, big data, multi-function, standardization and convenience" through the "single window" of international trade. The platform has realized direct integration with more than 30 departments and built and launched 889 service functions across 24 categories. At present, the number of registered users has reached more than 8.8 million, with a daily declared business volume of 26 million transactions. Thanks to this "window," enterprises do not need to run errands and can conduct business at any time.

We should continue to make the port business environment even better than it already is. Next, we will implement the requirements of the third plenary session of the 20th CPC Central Committee with a focus on the following three aspects: First, we will continue to optimize the mechanism of the special campaign to promote cross-border trade facilitation. We will comprehensively advance the implementation of border and post-border facilitation measures, improving customs clearance efficiency and logistics performance across the entire import-export chain. Second, we will institutionalize good practices and experiences, such as personally delivering favorable policies directly to enterprises' doorsteps and thoroughly addressing and resolving each and every one of their problems, further helping to ease the difficulties of businesses. We will implement 17 convenient measures for advanced certified enterprises, thus enhancing business entities' sense of gain. Third, we will further enhance the system integration of reform and innovation and strengthen port facilities and data sharing through the dual driving forces of deepening reform and scientific and technological empowerment. Thank you.

Cover News:

This year's government work report mentioned the Smart Customs initiative for the first time. The GACC also stated that the initiative started comprehensive implementation this year. Could you please elaborate on the current progress of this initiative and what will be the priorities for the next step? Thank you.

Zhao Zenglian:

I'll invite Mr. Lin Shaobin to answer the questions.

Lin Shaobin:

Thank you for your questions. The Smart Customs initiative is key to promoting customs reform. Driven by practical needs, technical support and social expectations, the development of Smart Customs has been fully unfolded and has already realized certain results. Here, I would like to highlight three keywords in this respect: security, convenience and efficiency.

First, security. We aim to construct an intelligent "Great Wall" which is supported by big data and intelligent equipment, safeguarding customs security by precisely preventing and defusing risks. For example, during machine inspection operations, we utilize intelligent technology to review images to accurately identify discrepancies between import and export declarations and shipments, smuggled goods and other risks. This also effectively detects the invasion of exotic pets and other foreign species. Furthermore, we precisely combat the smuggling of weapons, ammunition, drugs, and endangered species and their products.

Second, convenience. We continuously optimize customs procedures and streamline supervision to best facilitate the cross-border mobility of passengers and goods. For example, we are advancing smart passenger inspection by deploying innovative equipment, which includes integrated smart channels, advance machine inspection and collaborative robots, enabling passengers to experience seamless customs clearance. Recently, as China has relaxed visa-free policies, more international friends came to our country for travel, and have praised the new intelligent customs clearance experience at ports.

Third, efficiency. We extensively applied new technologies and intelligent equipment to effectively enhance customs operational efficiency in risk identification, supervision and inspection as well as enterprise services. For example, we implemented intelligent, non-intrusive, and streamlined supervision, enabling imported and exported goods to undergo machine inspection seamlessly during loading, unloading or transportation, thus achieving immediate inspection upon passing. We have also piloted remote inspection, allowing enterprises to complete inspection procedures remotely with customs.

The goal of the Smart Customs initiative is to achieve seamless customs clearance, intelligent supervision, minimal disruption and comprehensive regulation, utilizing the intelligent technologies to contribute to building a great country and to promote high-quality development of our country's foreign trade.

Aligned with the overall goals outlined at the third plenary session of the 20th Central Committee of the CPC, our next step will focus on process optimization, information sharing and system integration to accelerate the development of Smart Customs. We will pursue steady progress while highlighting key areas, aiming to establish the basic framework of Smart Customs by 2026 and form a complete system by 2029.

Of course, the Smart Customs initiative is currently still in its initial stage. To develop it well and fast, we need the support and attention from all sectors of society, especially the media. We welcome your valuable suggestions to inspire us. Thank you.

21st Century Business Herald:

In the first half of the year, China's total import and export value of goods hit a record high, and the export growth rate exceeded market expectations. What are the driving forces behind China's high-speed growth with importing and exporting? In the face of risks, such as the Red Sea crisis, can China's foreign trade continue to grow steadily in the second half of the year? Thank you.

Zhao Zenglian:

The public are probably concerned over these issues. I'll invite Mr. Lyu Daliang to answer the questions.

Lyu Daliang:

Thank you for the question. As we all know, we released the data on imports and exports for the first half of this year on July 12. Since then, there have been many comments from different perspectives. For example, some pointed out that our foreign trade in the first half of this year saw stable growth in terms of both quality and volume, with many highlights. Others commented on the emergence of new growth drivers in China's foreign trade half-year report, and some noted that China's export performance had exceeded expectations. Overall, in the first half of this year, our foreign trade reached a new high, with ample vitality from business entities, solid advantages from traditional growth drivers and continuous emergence of new ones. The foundation for sound and steady growth in foreign trade is solid, and the achievements are hard-earned and encouraging.

According to our analysis, the rapid growth of our foreign trade in the first half of this year is mainly due to three factors. First, macro policies have been firmly advanced, with various regions and departments earnestly implementing the arrangements of the Central Economic Work Conference, and the policy dividends continue to be released. Overall, our economy has performed stably while also ensuring progress, domestic production has grown steadily, and consumer demand has continuously recovered. All of these have provided strong support for stable growth in foreign trade. At the same time, the marginal improvement in external demand has also helped enterprises secure orders and expand markets. This has been reflected through various global economic and trade data, while the latest forecasts from institutions such as the World Bank and the Organization for Economic Co-operation and Development have all raised global growth expectations for 2024. The World Trade Organization's Global Trade Barometer has also stayed above the boom-bust line for two consecutive quarters. Additionally, our industrial system is complete, technological innovation drives industrial innovation and new quality productive forces spur new growth drivers in foreign trade. These factors enable us to provide innovative and high-quality products to the world.

As for the trend you asked about, the current external environment is increasingly complex, severe and uncertain, with high geopolitical risks. Some countries practice unilateralism and protectionism, and the interference caused to the global production and supply chains is gradually becoming apparent. As you mentioned, issues like the Red Sea crisis leading to shipping blockages and rising freight rates place increased cost pressures on enterprises. We believe that there are still many challenges to maintaining growth in foreign trade in the second half of this year.

Of course, encountering difficulties along the way is normal. Supported by the advantages of a super-large domestic market and a complete industrial system, and safeguarded by various policies to stabilize foreign trade, especially the strategic arrangements of the third plenary session of the 20th CPC Central Committee on deepening the foreign trade structural reform, the development of our foreign trade will be injected with strong momentum, ensuring steady and continued progress.

In accordance with the Party Central Committee and the State Council's decisions and plans, the GACC will continue to implement various policies and measures to stabilize foreign trade, boost the growth of trade in intermediate goods, support the imports of advanced technology and equipment as well as key components, and promote the development of cross-border e-commerce and other new business forms, focusing on consolidating the positive trend of foreign trade. Meanwhile, we will closely monitor changes in the situation, strengthen data monitoring and analysis, and reserve and provide a new round of customs clearance policies to help enterprises lower burdens and costs, working to steadily increase the volume and quality of foreign trade.

That is all for my answer. Thank you.

Science and Technology Daily:

We've noticed that the "China Customs" WeChat public account often publishes news about interceptions of invasive species. Could you please share what measures customs authorities have taken to guarantee biosecurity at the nation's borders? Thank you.

Zhao Zenglian:

Thank you for your question, and thank you for your interest in "China Customs." My colleagues and I also check the public account every day. Just this morning, "China Customs" released news about our frontline customs officers intercepting another invasive species at the port. Seeing news like that always gives me mixed feelings. On the one hand, I feel relieved, but on the other hand, I know that there is still a long way to go. I'm relieved because our customs authorities are able to strictly guard the port defense line and have achieved substantial results. However, there is "a long way to go," because the global situation regarding major infectious diseases, animal and plant epidemics and invasive species is still complex and severe, and the biosecurity at our nation's borders faces a complex and challenging situation.

Faced with a situation like this, the GACC is determined to safeguard the biosecurity at our national borders, striving to build a full-chain regulatory system and working diligently across the three lines of defense: overseas, at ports and domestically.

The first line of defense is strengthening overseas risk monitoring. We actively participate in international biosecurity cooperation and co-governance, paying close attention to the dynamic distribution of major overseas infectious diseases, plant and animal epidemics, and invasive alien species. We promptly warn against risks and defuse threats, ensuring strict inspection and quarantine. In the first half of the year, the customs authorities monitored more than 80 infectious diseases from more than 200 countries and regions. They issued 28 announcements, warning notices, and risk warnings in a timely manner, as well as eight bans related to animal epidemics.

The second line of defense is strict control over port quarantine and inspection. We have built smart ports, implemented intelligent quarantine procedures, and strengthened front-line investigations. We have implemented an overall disease prevention and control plan featuring "one policy per country, one policy per disease, and one policy per port" at each entry point. Supported by the approach of simultaneous detection of multiple diseases, we strictly prevent the spread of epidemics and diseases by implementing comprehensive prevention of multiple diseases. We have carried out a three-year special initiative to strictly prevent the invasion of alien species and leveraged technological tools such as AI-powered image inspection to ensure invasive species have nowhere to hide. This is also a result of the development of a smart customs system. In the first half of the year, the customs intercepted 2,071 alien species nationwide, including "exotic pets."

The third line of defense is strengthening cooperation in prevention and control within China. We have established port cooperation and data-sharing mechanisms with various departments, including health, disease prevention and control, agriculture and rural affairs, ecological environment, forestry and grassland, and immigration management. We have also collaborated with the Supreme People's Court and the Supreme People's Procuratorate to enhance penalties for illegal activities and build a strict prevention and control chain from entry at the border to the doorstep of households.

Recently, Gongbei Customs investigated our country's first case of illegal introduction of alien species. The relevant court department is currently hearing this case. The third plenary session of the 20th CPC Central Committee requires the full application of a holistic approach to national security. Looking ahead, customs authorities will focus on "firmly guarding national biosecurity at border entry points." To achieve this, we will further improve national systems of supervision, early warning, and prevention and control for biosafety and biosecurity. Additionally, we will establish and improve multi-channel risk monitoring and multi-point trigger early warning mechanisms. We will also bolster regional cross-border biosafety cooperation mechanisms and port risk joint assessment, prevention and control mechanisms, and enhance the ability to detect, warn and deal with risks at an early stage.

Protecting our nation's biosecurity at its borders demands the collective effort of all society. I'd like to take this opportunity to appeal to the public once again through our friends in the media: please refrain from illegally introducing or purchasing alien species. I would also like to ask all of you to help us spread awareness. Let's work together to protect our country's biological and ecological security. If you have any questions in this regard, please contact the customs hotline at 12360 for more information. Thank you.

China Financial and Economic News:

Cross-border e-commerce has been a hot topic in the economic field in recent years and has become a new driving force for foreign trade growth. Could you please elaborate on the latest development of cross-border e-commerce? What measures will customs authorities take to promote the development of cross-border e-commerce in the next step? Thank you.

Zhao Zenglian:

I will ask Mr. Lyu to answer your questions.

Lyu Daliang:

Thank you for your questions. The rapid development of cross-border e-commerce is a global phenomenon, building a direct bridge between more and more consumers and enterprises. I believe some of you may have a cross-border online shopping experience like me. Since the 18th CPC National Congress, China has rolled out a series of policies and measures, including establishing integrated pilot zones for cross-border e-commerce, improving and expanding the positive list of imported retail goods for cross-border e-commerce, as well as continuously developing new regulatory approaches for cross-border e-commerce customs clearance. These initiatives have promoted the accelerated development of China's cross-border e-commerce. According to customs statistics, China's cross-border e-commerce imports and exports in 2023 increased 1.2 times compared with 2018. Preliminary estimates show that imports and exports in the first half of this year were 1.22 trillion yuan, a year-on-year increase of 10.5%.

The robust growth of cross-border e-commerce has presented new challenges for customs oversight and services. Currently, customs authorities supervise more than 7 billion cross-border e-commerce express parcels and mail items annually, averaging about 20 million per day. In response to this situation, customs authorities have continuously developed new regulatory approaches, developed and applied cross-border e-commerce customs clearance service systems, and focused on improving the efficiency of cross-border e-commerce customs clearance. At the same time, practical measures have been taken to ensure that customs clearance is both fast and manageable. For example, we have carried out risk monitoring for imported food via cross-border e-commerce and sampling inspections for consumer goods. We've also launched a special initiative to comprehensively address the issue of "exotic pets" being shipped through cross-border e-commerce channels. These measures aim to ensure the quality and safety of cross-border e-commerce products and prevent the entry of prohibited items.

Chinese customs' regulatory practice on cross-border e-commerce has also provided experience for customs around the world. In 2018, we co-organized the first Global Cross-border E-commerce Conference with the World Customs Organization (WCO), and took the lead in drawing up the Framework of Standards on Cross-Border E-Commerce. Practical cases of Chinese customs' statistical methods for cross-border e-commerce have been continuously included in the Handbook on Measuring Digital Trade compiled by the World Trade Organization (WTO), the International Monetary Fund and the United Nations Conference on Trade and Development. We have actively participated in WTO's e-commerce negotiations and put forward our own suggestions. Chinese customs cross-border e-commerce commodity quality and safety control practices incorporate the WCO's good practice cases for cross-border e-commerce.

Next, Chinese customs will earnestly study and implement the spirit of the third plenary session of the 20th CPC Central Committee, and continuously improve the customs supervision system that is conducive to the development of cross-border e-commerce. Currently, we are working on promoting the inspection before shipment mode and have taken measures to expand the pilot scope of cross-border e-commerce retail export returns. We will also continue to optimize functions of the cross-border e-commerce customs clearance service system, further simplifying the process and optimizing services to better meet the needs of consumers and enterprises to "buy globally and sell globally." In short, we aim to make everyone's shopping experience smoother and help the country's cross-border e-commerce sector continue to develop with high quality. Thank you!

Xinhua Finance:

We have noticed that the central government in recent years has made a series of arrangements for coordinated regional development. What are the highlights of foreign trade development in relevant regions across the country? And what policies and measures has Chinese customs introduced to support coordinated regional development? Thank you. 

Zhao Zenglian:

Let's invite my colleague Mr. Lin to answer these questions. 

Lin Shaobin:

Thanks for your questions. Coordinated regional development is the internal requirement for achieving high-quality development. Since the 18th National Congress of the CPC, the CPC Central Committee has made more long-term and systematic strategic planning and overall arrangements for coordinated regional development, which has promoted both historical achievements and changes in coordinated regional development within the country, and has also injected surging momentum into Chinese modernization.

From the perspective of foreign trade, benefiting from the implementation of the national coordinated regional development strategy, regional foreign trade development is constantly moving towards a more balanced, higher level and higher quality direction, and each region also presents its own characteristics, complementary advantages and strengths.

The eastern region has borne the burden, contributing more than 70% to the country's foreign trade growth. The central and western regions have accelerated their development, with the average annual growth rate of imports and exports 4.5 percentage points higher than the national average. The imports and exports of the three northeastern provinces have set new records, reaching a historical high of 1.23 trillion yuan in 2023. In the first half of this year, imports and exports in the eastern, central and western regions and the three northeastern provinces all realized growth.

In particular, the Beijing-Tianjin-Hebei region, the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area have all played the important role as a source of foreign trade. The total foreign trade volume of the Beijing-Tianjin-Hebei region has crossed two-trillion-level mark, reaching a record high of 5.03 trillion yuan in 2023. With less than 4% of the country's land area, the Yangtze River Delta region has created more than one-third of the country's import and export value. Industrial clusters in the Guangdong-Hong Kong-Macao Greater Bay Area have outstanding advantages. In 2023, the nine mainland cities in the Greater Bay Area exported nearly 50% of the country's household appliances, nearly 80% of 3D printers and more than 90% of unmanned aircraft.

Chinese customs have aligned with the strategic deployment of the CPC Central Committee and the State Council's coordinated regional development, and has strongly supported coordinated regional development over the years. We have adopted a category-based and region-specific approach based on the unique advantages of different regions.

For example, we have established a unified "green channel" for key enterprises in the Beijing-Tianjin-Hebei region to develop key industries such as biomedicine, integrated circuits and artificial intelligence. We have vigorously promoted customs clearance facilitation in the Guangdong-Hong Kong-Macao Greater Bay Area, thus continuing to promote the reform of "combined ports" and "one port link" to connect inland ports with hub ports and "sea ports" to the "doorsteps" of enterprises through rivers. Taking Shunde's export of home appliances as an example, the logistics time has been shortened from seven days to about two days. We have also worked hard to create a favorable environment for foreign trade entities in developed regions with export-oriented economies, such as the Yangtze River Economic Belt and the Yangtze River Delta. We strongly support the opening of ports and the establishment of new comprehensive bonded zones in the central and western regions to create more and better platforms for local high-level opening up.

Next, we will introduce more and better targeted measures in accordance with the strategic deployment of coordinated regional development proposed by the third plenary session of the 20th CPC Central Committee. We will work together with everyone to draw a grand picture of coordinated regional development covering eastern, central and western China as well as synchronizing southern and northern China. Thank you!

Xing Huina:

Due to time constraints, we will take one last question.

Guangming Daily:

The third plenary session of the 20th CPC Central Committee proposed deepening the structural reform of foreign trade. How will Chinese customs implement the arrangements of the session and drive its self-reform to accommodate the new situation and new developments? Thank you.

Zhao Zenglian:

Thank you for your question. Studying and implementing the guiding principles of the session represent a major political task at present and for some time to come. Customs authorities nationwide have thoroughly studied and grasped the guiding principles of General Secretary Xi Jinping's important speeches and the plans and arrangements of the session, set off a rapid uptick in study and implementation, and worked with relentless persistence to ensure the implementation.

At present, the GACC has initially studied and formed a framework for implementation, which can be summarized as "1+1+4." The first "1" refers to one objective; the second "1" refers to one foothold ; and the "4" refers to four key tasks. The one objective is that in accordance with the overall objectives proposed by the session, we make timely adjustments to the overall plan for further deepening customs reforms comprehensively to advance the modernization of customs, ensuring that our objective is in line with the overall objectives proposed by the session and contributes to Chinese modernization through the modernization of customs. The one foothold is that we will advance the development of smart customs and the action on building a leading country in smart customs. Simply put, the four key tasks are as follows:

First, with a focus on advancing the modernization of China's national security system and capacity, we will further develop the customs' mechanism for safeguarding national border security. As the national customs authority with the largest trade in goods in the world, Chinese customs faces difficulties posed by various forms of trade, high demands of regulations, multiple risks and significant security pressure. In general, we will face and deal with five major risks including goods stuck in customs, concealed information, evasion of regulations, fraud, and threats to national security, people's health and eco-environment. As the Chinese idiom goes, virtue is one foot tall, the devil ten foot, meaning it takes constant vigilance to stave off evil. To tackle these issues, we must drive development through reform, boost vitality through innovation, and deepen reform of customs' supervision institutions and mechanisms. We have proposed improving three mechanisms: the mechanism for risk prevention and control, the mechanism for comprehensive regulation, and the mechanism for scientific and technological support. These mechanisms will solve prominent problems including how to accurately and efficiently identify and deal with risks, how to manage anomalies and safeguard the nation's borders, and how to realize intelligent and autonomous supervision.

Second, with a focus on improving institutions and mechanisms for high-standard opening up, we will further optimize the customs' mechanisms for promoting opening up and development. This is a topic you are also concerned about, which can be summarized into five areas. That is, we will put focus on building a high-standard socialist market economy, steadily expanding institutional opening up, conducting the structural reform of foreign trade, improving planning for regional opening up, and deepening institutional reforms related to the work of foreign affairs. We put forward 16 areas where we need to make breakthroughs. For example, to make breakthroughs in invigorating the foreign trade market, we will build a new type of customs supervision mechanism that is more efficient and fairer to ensure that we can lift market restrictions while ensuring effective regulation. This measure is based on credit rating-based regulation, risk classification, and categorized management. We will coordinate reform and sci-tech and implement intelligent supervision, ensuring that enterprises that break laws and regulations pay the price and smoothing the way for enterprises that have credibility.

Third, with a focus on enhancing socialist rule of law with Chinese characteristics, we will further improve customs regulations. Earlier this year, the Law on Customs Duties and the newly revised Frontier Health and Quarantine Law were promulgated successively, providing a more powerful legal basis for customs authorities to fully and effectively perform their relevant duties. We will further deepen reform comprehensively by improving customs laws and regulations, advancing reform and rule of law in a coordinated manner, and enhancing customs management institutions and mechanisms, to give better play to the role of the rule of law in consolidating foundations, ensuring stable expectations and delivering long-term benefits.

Fourth, with a focus on deepening institutional reforms related to the Party's leadership and Party building, we will further improve our institutions and mechanisms for exercising full and rigorous self-governance of the Party. Customs authorities are first and foremost a political organ. We will unswervingly uphold and strengthen the Party's leadership in further deepening customs reform comprehensively and improve our institutions and mechanisms for Party building as well as the working mechanism for ensuring that officials do not dare to be, are not able to be, and do not want to be corrupt. We will push forward a three-year action plan for enhancing capacities of customs workers, and advance the efforts of Party committees at three levels to raise their awareness of reform, strengthen their courage of reform and enhance their ability to reform, hence mobilizing the initiative, motivation and creativity of customs authorities to implement reform and promote development.

Regarding the above four key tasks, we have designed 59 measures. Next, we will further improve customs authorities' implementation plan focusing on the "1+1+4" general framework, clarify tasks, timings and priorities, make clear who are responsible for implementing these reforms, and flesh out their responsibilities. We will fulfill our duties and missions of safeguarding the nation's borders and promoting development, and serve well as guards for national borders to meet the expectations of the Party and the people, thereby contributing our efforts to Chinese modernization. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thank you to the three speakers and all the journalists present here. Goodbye.

Translated and edited by Zhu Bochen, Wang Qian, Guo Yiming, Ma Yujia, Liao Jiaxin, Wang Wei, Liu Caiyi, Li Xiao, Zhang Tingting, Zhang Rui, Wang Ziteng, Liu Sitong, Mi Xingang, Li Huiru, Yan Bin, Huang Shan, Yang Xi, Wang Qian, Xu Kailin, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Shen Changyu, commissioner of the China National Intellectual Property Administration (CNIPA) 

Mr. Hu Wenhui, deputy commissioner of the CNIPA 

Mr. Ge Shu, deputy commissioner of the Patent Office and director general of the Strategic Planning Department at the CNIPA 

Mr. Wang Peizhang, director general of the IP Utilization Promotion Department at the CNIPA

Chairperson:

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

Date:

July 29, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Shen Changyu, commissioner of the China National Intellectual Property Administration (CNIPA), to brief you on relevant developments and to take your questions. Also present today are Mr. Hu Wenhui, deputy commissioner of the CNIPA; Mr. Ge Shu, deputy commissioner of the Patent Office and director general of the Strategic Planning Department at the CNIPA; and Mr. Wang Peizhang, director general of the IP Utilization Promotion Department at the CNIPA.

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

Shen Changyu:

Thank you. I would like to take this opportunity to express my gratitude to friends from the media for their ongoing concern, attention and support for our work on intellectual property (IP) over the years.

IP is a strategic resource for national development and a core element of a country's international competitiveness. Since the beginning of the new era, the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core has placed greater emphasis on IP work, strengthening the top-level design of IP policies and deepening reforms across the IP field. This approach has led to a series of breakthrough advancements and landmark achievements in IP work, charting a path for IP development with Chinese characteristics and providing strong support for high-quality development. I will now briefly introduce the overall progress in IP reforms and development.

First, in terms of creation, high-value IP has continued to emerge. As of this June, the number of valid domestic invention patents in China reached 4.425 million, with the share of invention patents held by enterprises rising to 72.8%, indicating a surge in corporate innovation. The number of high-value invention patents per 10,000 people reached 12.9, surpassing the national target set in the 14th Five-Year Plan ahead of schedule. The number of valid registered domestic trademarks reached a new record high of 45.909 million.

Second, in terms of application, IP has effectively empowered innovative economic development. The implementation of special actions to promote patent commercialization has been deepened. In the first half of this year, the number of patent transfers and licenses by universities and research institutions across the country increased by 22.2% compared to the previous year, and a batch of high-value patents has accelerated implementation in advanced, intelligent and green industrial scenarios. The added value of patent-intensive industries reached 15.3 trillion yuan, accounting for 12.7% of GDP. From January to May this year, the total import and export value of IP royalties reached 180 billion yuan, representing a year-on-year increase of 14.1%. Exports grew by 17.7%, which was 4.7 percentage points higher than the growth rate of imports.

Third, in terms of protection, IP protection has contributed to creating a top-notch business environment. The newly revised Patent Law and its implementing regulations have been fully implemented, and revision to the Trademark Law has been included in the legislative agenda of the Standing Committee of the National People's Congress. The Measures for the Protection of Geographical Indication Products and the Regulations for the Registration and Administration of Collective and Certification Marks were issued to strengthen legal safeguards for IP. Progress has been made in establishing rules for data IP protection, with pilot programs launched in 17 provinces and cities to facilitate the circulation and utilization of data elements. The IP protection system has been strengthened, with 25 national-level IP protection demonstration zones being developed to high standards, and approval being granted for the establishment of 115 national-level IP protection centers and rapid rights protection centers. Public satisfaction with IP protection has increased to 82.04 points, setting a new record high.

Fourth, in terms of services, measures have been taken to improve convenience for individuals and enterprises. The IP Public Service Inclusion Project has been implemented, and the Guidelines for Government Services on Intellectual Property Rights was issued to standardize 72 IP administrative services. A total of 60 types of basic IP data have been made available, ensuring maximum data openness. The quality and efficiency of IP examinations have been continuously improved, with the average examination period for invention patents reduced to 15.7 months, with an accuracy rate of 94.2%. The average examination period for trademark registrations has stabilized at four months, with an approval rate of 97.7%, both reaching internationally advanced levels under similar examination systems.

Fifth, in terms of international cooperation, IP protection has actively contributed to high-level opening up. China has engaged deeply in global IP governance under the framework of the World Intellectual Property Organization (WIPO), and successfully joined the Hague Agreement Concerning the International Registration of Industrial Designs and the Marrakesh Treaty on copyright-related rights. China also facilitated the conclusion of the WIPO Treaty on Intellectual Property, Genetic Resources and Associated Traditional Knowledge. Institutional exchanges have been further deepened among China, the United States, Europe, Japan and South Korea; BRICS countries; China, Japan and South Korea; China, Mongolia and Russia; China and Central Asia; China and ASEAN; China and EU. Chinese applicants have consistently ranked among the world's leaders in applications under the WIPO's three major systems: PCT international patents, Hague system designs, and Madrid international trademarks. As of this June, valid foreign invention patents and registered trademarks in China reached 919,000 and 2.135 million, respectively, reflecting steady growth. Additionally, mutual recognition and protection have been achieved for 244 Chinese and EU geographical indication (GI) products, with a second batch of 350 products announced, thereby strengthening China-EU economic and trade relations.

Currently, China is in a critical period of transition from major importer of IP to major creator of IP. The IP work is shifting from a focus on quantity to an emphasis on quality. The recently convened third plenary session of the 20th CPC Central Committee made significant arrangements to further deepen reforms across the board, clearly outlining the need to establish an efficient system for the comprehensive management of IP rights. We will earnestly implement these arrangements, continuously enhancing our IP governance capabilities and levels, and better leveraging IP to incentivize overall innovation, promote industrial transformation, optimize the business environment, and facilitate the smooth circulation of both domestic and international markets, making a greater contribution to accelerating the realization of Chinese modernization.

That concludes my introduction. My colleagues and I are now ready to take your questions. Thank you.

Xing Huina:

We will now move on to the Q&A session. Please identify your news organization before posing your questions.

CCTV:

The third plenary session of the 20th CPC Central Committee explicitly called for building an efficient system for the comprehensive management of intellectual property rights (IPR). What plans does the CNIPA have to carry out the related work? Thank you. 

Shen Changyu:

Thank you for your question. I'll answer this one. Adopted at the third plenary session of the 20th CPC Central Committee, the resolution on further deepening reform comprehensively to advance Chinese modernization lays out many reforms regarding IPR, emphasizing the need to improve the property rights system to ensure law-based, equitable protection of the property rights of economic entities under all forms of ownership on a long-term basis and to establish an efficient system for the comprehensive management of IPR. According to the resolution, all economic entities, regardless of their form of ownership, will be treated equally when their property rights and legal interests are infringed upon or they infringe upon the property rights and legal interests of others. Also, the punitive compensation system will be refined. All these fully demonstrate that the CPC Central Committee attaches high importance to work related to IPR and that IPR play an important role in overall modernization. 

The CNIPA is thoroughly studying the spirit of the third plenary session of the 20th CPC Central Committee, while maintaining a problem- and objective-oriented approach. We have explored implementation measures and plan to carry out related work from three aspects, with the aim of deepening reforms regarding IPR and facilitating the establishment of an efficient system for comprehensive management of IPR. 

First, we will deepen reform on comprehensive management of intellectual property rights by better encouraging innovation. We will uphold the idea that by protecting intellectual property rights, we are protecting innovation. We will further intensify intellectual property rights protection, enhance legal protection for intellectual property rights, improve the punitive compensation system, create a framework for comprehensive protection, foster an innovation-friendly environment, and boost new quality productive forces. We will remove barriers impeding the invention, use, protection, management, service and international cooperation of intellectual property rights, while boosting the comprehensive utilization of patents, trademarks, geographical indications, layout-design of integrated circuits and data intellectual property with the aim of multiplying benefits. We will focus on addressing critical technical challenges, enhance support regarding patent examination for key and core technologies, and facilitate the transformation and application of patents, with the aim of contributing to the development of a modern industrial system, creating a virtuous cycle of investment in and output of innovation, and achieving greater self-reliance and strength in science and technology. 

Second, we will deepen reform on comprehensive management of intellectual property rights by more effectively boosting high-standard opening up. With the aim of better coordinating foreign-related intellectual property right issues, we will participate deeply in global governance with regards to intellectual property rights, help improve related international rules, and expand institutional opening up. We will ensure equal treatment and protection for domestic and foreign-invested enterprises and create a first-class business environment based on market rules, the rule of law and international norms to attract global resource factors and increase the use of foreign investment, so that the domestic economy and international engagement can reinforce each other. We will guide export-oriented enterprises to create plans regarding overseas intellectual property rights, enhance assistance for safeguarding enterprises' legitimate rights and interests overseas, and encourage businesses to tap the global market.

Third, we will deepen reform on comprehensive management of intellectual property rights by facilitating the development of a high-standard market system. We will lawfully and equally protect the intellectual property rights of business entities under all forms of ownership and crack down on all kinds of infringing and illegal activities, so as to create a business environment that upholds fair competition and facilitates the creation of a unified national market where state-owned, private and foreign-invested enterprises all confidently operate their businesses, expand market shares and make investments. We will promote the deep integration of intellectual property rights and other productive factors, invigorate all productive factors such as labor, knowledge, technology, management, capital and data, and utilize various types of advanced, high-quality productive factors to foster new quality productive forces. We will improve the systems and mechanisms for fully motivating central and local governments, continue to enhance interdepartmental and interregional collaboration, strengthen top-level design while fostering a spirit of exploration among primary-level personnel, and promote the deep coordination of intellectual property rights and national, regional and industry-specific strategies, so as to boost effective interaction and provide robust support. Thank you. 

Bjnews.com.cn:

An important task of the special action on patent transformation and application is to use patents to strengthen industrial chains and improve efficiency in key industries. What are your thoughts on this? Thank you. 

Shen Changyu:

Thank you for your question. I would like to invite Mr. Wang to answer. 

Wang Peizhang:

Thank you for your question. Key industries are an important part of the national economic system and face fierce competition. Focusing on using intellectual property rights to strengthen industrial chains and improve efficiency in key industries, the CNIPA thoroughly implemented the arrangements and requirements stated in the special action plan for patent transformation and application. It also recently worked with relevant departments to issue measures on promoting the use of intellectual property rights for strengthening industrial chains and improving efficiency in key industries. We will focus on four aspects to enhance the competitive advantages, scale benefits, development environment and safety level of key industries. 

First, to enhance competitiveness of key industries, we will improve the quality of intellectual property rights and foster more original and basic patents and high-value patent portfolios. We will establish and refine a work mechanism for patent navigation, implement a number of patent navigation projects for boosting key industries, and publish the results of patent navigation. We will better coordinate the layout of patents and the development of standards, encouraging enterprises to take part in the formulation of international standards. 

Second, to increase scale benefits for key industries, we will accelerate the industrialization of patents, adopt online and offline matchmaking to achieve precise matching of patent demand and supply, and accelerate the transformation of existing patents. We will fully utilize the resources of various platforms, implement patent industrialization projects in key areas, explore open innovation such as through open-source patents as well as new modes of intellectual property right utilization such as patent open licensing, and develop patent-intensive products and famous, technology-based trademarks and brands. 

Third, to optimize the ecosystem for industrial innovation and development, we will establish mechanisms for coordinated industrial development, guide and encourage leading enterprises and key industrial parks to build operation centers for intellectual property rights for various industries, offer guidance on setting up intellectual property rights related innovation coalitions for various industries, and promote cooperation and coordination in the invention, use, protection and management of intellectual property rights. We will encourage the establishment of patent pools for key industries, draft and release instructions, enhance the overall layout of patent pools, and boost coordinated industrial development. 

Fourth, in terms of ensuring industrial security, we will make coordinated efforts to promote international cooperation and competition in IP, encouraging industrial communities to participate more in global IP governance in emerging fields such as the digital economy and artificial intelligence (AI). We will improve the overseas IP information service platform, continue to release dynamic information related to overseas IP, guide enterprises to strengthen the development of IP systems and overseas layout, and continuously improve the level of IPR compliance management and risk response capacities.

Going forward, we will consolidate coordination and support, implement concrete measures, vigorously promote the efficient transformation, coordinated application, strategic layout and risk prevention and control of IPR in key sectors, and provide strong support for industrial innovation and development and the cultivation of new quality productive forces at a faster pace. Thank you.

Shangyou News:

Last year, the State Council issued the Special Action Plan for Transformation and Utilization of Patents. What progress has been made so far? What are the work plans for the next stage? Thank you.

Shen Changyu:

Thank you for your questions. I will answer these. Since the implementation of the Special Action Plan for Transformation and Utilization of Patents, the CNIPA has worked closely with relevant government departments and localities to promote patent industrialization, with supporting policies formulated and measures taken to effectively address difficulties in patent transformation.

On the one hand, we have accelerated sorting out of patent stocks of universities and research institutes. We have built a national data platform for invention patents of universities and research institutes to help them be clear about the number of existing patents. We collaborated with the Ministry of Education and the Chinese Academy of Sciences to organize key universities and scientific research institutions to take the lead in pilot projects and to form a demonstration effect. In accordance with the idea of "promoting and transforming while sorting out patents," all localities have actively held exchange activities such as on-site promotions for more efficient use of patents, and patent transformation matchmaking events. As of this June, universities and research institutes across the country have made an inventory of 850,000 existing invention patents, and overall progress has now exceeded 95%. Driven by these efforts, the number of patent transfers and licenses in universities and scientific research institutions nationwide reached 23,000 in the first half of this year, up 22.2% year on year. The transformation and utilization of existing patents are relatively large, and overall are becoming more and more active.

On the other hand, we have effectively leveraged the leading role of enterprises in the industrialization of patents. We have joined hands with the Ministry of Industry and Information Technology, the People's Bank of China, the National Financial Regulatory Administration, the China Securities Regulatory Commission and other departments to implement the patent industrialization plan to facilitate the growth of small- and medium-sized enterprises (SMEs). At present, we have organized more than 17,000 technology-based SMEs to participate. Through inclusive services and exclusive support for IPR, we have channeled knowledge, technology, capital, talent and other factors toward SMEs, and accelerated the cultivation of a group of model enterprises with patent industrialization as the growth path. At the same time, we have also made full use of initiatives, such as the IP Services Tour, "1,000 Universities-10,000 Enterprises" collaborative innovation partnership action, "100 Events with 10,000 Enterprises" encompassing small, medium and large enterprises for collaboration, and the "One Key Industrial Chain Each Month" investment and financing matchmaking event, to promote collaboration in patent transformation and application services, help SMEs to connect with high-quality investment institutions and patent industrialization cooperation projects, and play a bigger role in patent transformation.

Next, we will shift our focus from sorting out existing patents to making better use of them, concentrating on patent transformation for tangible results. We will prioritize patent industrialization, mobilize all forces and social resources to promote patent transformation in an all-round, in-depth and multi-channel manner, release the market value of patents, enhance corporate competitiveness, and create new growth drivers and strengths for industrial development. Thank you.

Xinhua News Agency:

Protecting the rights and interests of foreign investors and fostering a first-rate business environment that is market-oriented, law-based and internationalized are particularly important. What measures have been taken to strengthen the protection of IPR of foreign-funded enterprises? And what progress has been made in this regard?

Shen Changyu:

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

Hu Wenhui:

Thank you to Mr. Shen and the reporter for the questions. Strict protection of IPR is an issue of concern for foreign-funded enterprises. General Secretary Xi Jinping emphasized that the protection of property rights, especially IPR, is an important aspect in creating a favorable business environment and highlighted the importance of protecting the lawful IPR owned by foreign enterprises in China. The CNIPA has fully implemented the important instructions delivered by General Secretary Xi Jinping and the decisions and plans of the CPC Central Committee and the State Council, and strives to create a level playing field for enterprises and innovators from all countries.

First, in terms of top-level design, China has successively issued a series of important documents, including the Outline for Building an Intellectual Property Powerhouse (2021-2035), the 14th Five-Year National Plan for Intellectual Property Protection and Application, and the Guidelines on Strengthening the Protection of Intellectual Property Rights. These have made clear arrangements for the equal protection of IPR, emphasizing the need to build an IPR protection system that supports a world-class business environment. At the same time, we have also completed a new round of amendments to the Trademark Law and the Patent Law, and established a punitive compensation system for IPR infringements with the highest international standards.

Second, in terms of improving protection efficiency, we treat and protect the IPR of domestic and foreign-funded enterprises equally. For example, we have built 115 national level IP protection centers and rapid rights protection centers across the country, with more than 5,000 foreign-funded and joint venture enterprises registered, providing the same rapid and coordinated protection services as we do to domestic enterprises. We deal with foreign-related IP disputes prudently and stop infringements in a timely manner. Over the past year, we have properly handled a number of IP disputes involving enterprises from the United States, Germany, France, Italy, Thailand, Denmark and other countries. Our efforts have been highly commended by foreign-funded enterprises.

Third, in addressing the concerns of foreign-funded enterprises, we have established a regular communication mechanism with them. Through multiple IP forums, we actively listened to their concerns, and helped resolve their IP-related challenges, enabling them to operate and invest with confidence. This month, we hosted another IP forum for foreign-invested enterprises, inviting more than 10 major multinational companies, including AstraZeneca, Bayer and Tesla, for face-to-face discussions and to hear their opinions and suggestions. Mr. Shen, along with myself and other responsible colleagues, attended the forum, where we addressed their queries on-site, earning their appreciation. In 2023, the satisfaction score of foreign-funded enterprises regarding IP protection in China reached 80.55 points, an increase of 1.44 points from 2022. At the same time, the number of foreign IP applications, authorizations and valid registrations in China has also increased rapidly. As of June this year, the number of valid foreign invention patents and registered trademarks in China reached 919,000 and 2.135 million, respectively, showing year-on-year growth of 3.9% and 3.8%. This demonstrates that foreign enterprises place great importance on the Chinese market and have strong confidence in China's IP protection system.

Moving forward, we will continue to strengthen IP protection and deepen international IP cooperation. We will actively align with high-standard international economic and trade rules, further improve communication mechanisms with foreign-funded enterprises, and make our IP efforts more robust and effective. This will create a better business environment for foreign-funded enterprises, allowing them to benefit more from China's development and its vast market. Thank you.  

China Intellectual Property News:

With the digital economy expanding rapidly, can you introduce the innovation of China's digital economy from the perspective of IP rights? What specific measures are being considered to ensure IP rights support digital economic development? Thank you.

Shen Changyu:

Thank you for your questions. I will invite Mr. Ge Shu to answer them.

Ge Shu:

Thank you. The added value of the digital economy has become a key engine of China's growth, with core digital industries contributing 10% to GDP in 2023. Innovation in this sector has been particularly dynamic, as evidenced by our IP metrics. In 2023, core digital industries received 406,000 invention patent authorizations, representing 45% of the national total. This sector has maintained a robust average annual growth rate of 21% over the past five years. By the end of 2023, there were 155,000 domestic enterprises holding digital economy-related invention patents, an increase of 31,000 from the previous year. In particular, innovation in the field of artificial intelligence has been notably vigorous. By the end of 2023, the number of valid AI invention patents in China reached 378,000, with a year-on-year growth rate exceeding 40%, which is 1.4 times the global average growth rate.

While domestic innovation accelerates, foreign enterprises continue to strengthen their patent portfolios in China's digital economy core industries. By the end of 2023, companies from 93 countries and regions held valid invention patents in China's digital economy core industries, of which 61.8% belonged to the digital product manufacturing sector.

The third plenary session of the 20th CPC Central Committee emphasized the need to accelerate the establishment of systems and mechanisms to promote the development of the digital economy. The data IP system serves as the fundamental framework for digital economic development. In recent years, we have focused on IP functions and actively explored establishing data IP protection rules to enhance and strengthen the digital economy. We have achieved initial results. This includes proposing the "four full considerations" basic principles for building a data IP system and conducting in-depth research on key issues such as data IP protection targets, responsible entities, registration methods, rights content, protection methods and application models, laying a solid theoretical foundation for building a data IP system. At the same time, data IP pilot projects have been launched in 17 provinces and cities across the country, with over 8,700 data IP registration certificates issued, and data IP pledge financing exceeding 5.5 billion yuan. On this basis, we drafted policy documents on data IP, established registration management standards, and designed a national unified data IP registration certificate. We are accelerating the establishment of a national data IP registration platform and related information systems to support data IP registration at the national level.

Next, we will earnestly implement the important reform arrangements for digital economy development outlined at the third plenary session of the 20th CPC Central Committee. We will continue to strengthen coordination with relevant departments and better leverage IP as a fundamental safeguard for innovation. Additionally, we will actively promote the establishment of a national-level data IP system to better support the development of the digital economy. Thank you.

Jiangsu Broadcasting Corporation:

We know that trademarks are essential for market entry. Given China's vast number and diverse scale of business entities, what new measures have been implemented to facilitate trademark applications? Thank you.

Shen Changyu:

Thank you for your question. I'd like to invite Mr. Hu, who oversees trademark-related matters, to answer your question.

Hu Wenhui:

Thank you, Mr. Shen, and thanks you to the reporter for your question. China's vast market offers broad opportunities for the development of trademark industry. Since the start of the 14th Five-Year Plan, annual trademark applications have exceeded 7 million. As of June this year, the number of valid registered trademarks in China reached 45.909 million, with an average of one valid trademark for every four business entities. To meet diverse trademark application needs and stimulate market vitality, CNIPA has implemented several business-friendly services throughout the trademark application and registration process.

First, in terms of application procedures, we have set up 353 trademark service centers across 31 provincial-level regions. These centers provide more than 20 types of trademark services, including application processing, modifications, renewals, and pledge registrations, along with in-person consultation services. At the same time, we have actively promoted fully digital trademark services, optimized the online application interface, and implemented fee discounts for digital submissions. As a result, the online trademark registration rate has reached 99.7%.

Second, in terms of data sharing, we have implemented electronic trademark certification to facilitate nationwide recognition of digital certificates. We've incorporated trademark information, decision documents, registration certificates, pledge registration notices, and related services into the national administrative service platform for easier business access. Additionally, we've enhanced the integration of business registration and trademark registration data, launching pilot programs in several locations that enable simultaneous processing of business modification registrations and trademark changes.

Third, in terms of examination policies, we've strengthened timeline management across all stages and optimized the distribution of examination resources to ensure prompt processing of various trademark services. The average trademark registration examination period now consistently stands at four months, which is at a leading level compared to other countries that also implement prior rights examinations.

Fourth, in terms of supporting business development, we have organized examiners to directly engage with people in sectors such as food, traditional Chinese medicine, cosmetics, agriculture, and agricultural product processing, introducing trademark application precautions, tips regarding the online application system, and other information to enhance the trademark awareness of business entities and promote better enterprise development.

Moving forward, we will continue to enhance trademark services and implement more efficient measures to meet business entities' needs for trademark registration and brand building, thereby contributing to high-quality economic and social development. Thank you.

China Daily:

At the opening ceremony of the third Belt and Road Forum for International Cooperation, President Xi Jinping emphasized the need to deepen reform in areas including intellectual property to support high-quality Belt and Road cooperation. My question is, what progress has been made in intellectual property cooperation under the Belt and Road Initiative (BRI) in recent years, and what are the next steps? Thank you.

Shen Changyu:

Thank you for your question. I will answer this. Since President Xi Jinping proposed the BRI, the CNIPA has established and continuously improved the intellectual property cooperation mechanism under the initiative. We have held two Belt and Road high-level conferences on intellectual property and made solid progress in cooperation with participating countries.

First, our partnerships have expanded. We signed an intergovernmental agreement with the World Intellectual Property Organization (WIPO) to strengthen intellectual property cooperation under the BRI. We established Funds-In-Trust China to provide technical assistance to developing countries, including those participating in the BRI. We have actively advanced intellectual property cooperation within minilateral frameworks such as BRICS, China-ASEAN, China-Central Asia, China-Mongolia-Russia, and China-Africa. To date, we have signed agreements and established bilateral cooperation mechanisms with 57 BRI participating countries regarding intellectual property cooperation.

Second, cooperation projects have yielded fruitful results. We have actively promoted exchanges and cooperation with partner countries in the areas of intellectual property policy communication, personnel training, degree education, examination services, and protection and utilization. We have organized more than 50 training sessions for partner countries, training more than 1,200 intellectual property officials and practitioners. We have developed intellectual property degree education programs under the BRI, enrolling over 230 students. We have also dispatched 29 experts in total to support intellectual property capacity building in partner countries.

Thanks to Belt and Road intellectual property cooperation, Chinese enterprises have expanded their development opportunities. Chinese invention patents now receive direct registration and recognition in Cambodia, while Laos accepts China's patent examination results. We have also established Patent Prosecution Highway (PPH) agreements with 17 BRI partners, including Russia, Singapore, Poland, Egypt and Saudi Arabia. The China-Thailand geographical indication mutual recognition and protection project is progressing steadily. Between 2013 and 2023, the number of patents granted to Chinese entities in BRI participating countries increased by an average of 20% annually. This growth was particularly strong in core digital and green low-carbon technologies, strongly supporting digital transformation and green development across BRI participating countries.

Moving forward, the CNIPA will thoroughly implement the key principles from President Xi Jinping's important speech at the opening ceremony of the Third Belt and Road Forum for International Cooperation. In September of this year, we, along with the Publicity Department of the CPC Central Committee (National Copyright Administration), the Ministry of Commerce, the Beijing Municipal Government, and WIPO, will host the Third Belt and Road High-Level Conference on Intellectual Property. The conference will include representatives from over 60 Belt and Road partner countries, regions, and international organizations. It aims to achieve greater scale, higher quality, stronger results, and broader impact. We will advance a series of pragmatic cooperation projects across four areas: patents, trademarks, geographical indications, and copyright. This will elevate Belt and Road intellectual property cooperation to a new level, better support the high-quality development of the BRI, and contribute to the country's high-level openingup. Thank you.

The Poster News APP:

This year is a key year for achieving the goals of the 14th Five-Year Plan. Could you outline the progress in intellectual property development during the first half of this year? Thank you.

Shen Changyu:

Thank you for your question. I will have Mr. Ge Shu, deputy director general of our Patent Bureau, who is responsible for planning, to answer this question.

Ge Shu:

Thank you for your question. This year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we have earnestly implemented the principles of the Central Economic Work Conference, the national "two sessions," and the third plenary session of the 20th CPC Central Committee. We have strengthened intellectual property protection, promoted industrial innovation through technological advances, and actively contributed to the development of new quality productive forces, supporting the continuous recovery and growth of the economy. In the first half of 2024, intellectual property development has shown steady progress with five key characteristics.

First, innovation output grew rapidly. In the first half of this year, China granted 554,000 invention patents and 2.46 million registered trademarks, up 28% and 22% year on year, respectively. Additionally, 111 geographical indication (GI) products and certification trademarks received recognition and approval, while 5,365 integrated circuit layout designs were registered.

Second, the conversion and application of innovations accelerated. In the first half of this year, nationwide patent transfers and licenses reached 252,000, a 35.2% year-on-year increase. The registered amount of patent and trademark pledge financing reached 419.9 billion yuan, increasing 57% year on year, benefiting more than 20,000 enterprises — a year-on-year increase of 37%. Universities and research institutions across the country completed an inventory of 850,000 existing invention patents, with overall progress exceeding 95%.

Third, our efforts to protect IPR continued to increase. In the first half of this year, China introduced an action plan on the construction of an IPR protection system and approved the establishment of two national protection centers and two rapid-response IPR service centers, expanding coverage to 28 provincial-level regions. We handled 21,000 administrative patent infringement cases and supported 2,045 mediation organizations in resolving 57,000 IPR disputes. Additionally, 4,144 businesses received approval to use GI special marks.

Fourth, overseas intellectual property applications by Chinese enterprises continued steady growth. In the first half of this year, Chinese applicants filed 30,000 international patent applications through the Patent Cooperation Treaty (PCT) and 3,637 trademark applications under the Madrid System. Madrid System applications showed particularly strong momentum, increasing 20.3% year on year. According to WIPO) data, Chinese applicants also filed 1,004 industrial design applications through the Hague System, rising 5% year on year.

Fifth, foreign enterprises became more proactive in applying for patent protection in China. In the first half of this year, foreign applicants submitted a total of 78,000 invention patent applications in China, up 13.1% year on year, with Japan (22,000), the United States (20,000), and South Korea (10,000) ranking as the top three in application volume, up 7.3%, 11.4% and 18.2% year on year, respectively.

Zhinews of Shenzhen Satellite TV:

In recent years, China has actively explored the patent open-license system to help enterprises integrate advanced technologies and achieve innovation-driven development. This effort represents an important component in promoting new quality productive forces. What is the current progress of this work? What measures will be taken to further implement this system? Thank you.

Wang Peizhang:

Thank you for your questions. The patent open-license system is a special licensing mechanism established in the fourth revision of China's Patent Law. This system facilitates simple and quick "one-to-many" licensing, effectively reduces institutional transaction costs, and significantly improves patent commercialization efficiency. Since May 2022, the CNIPA has carried out a patent open-license pilot program. By the program's completion at the end of 2023, more than 3,200 patent holders had selected over 59,000 patents for open licensing, matching them with more than 110,000 small- and medium-sized enterprises (SMEs). The program resulted in over 17,000 licensed projects, effectively easing the difficulties universities and research institutions face in patent commercialization and SMEs' struggles to acquire technology. After 18 months of pilot implementation, the patent open-license system concept has been popularized, laying a solid foundation for its full implementation. It has also played a positive role in expanding new models and channels for patent commercialization.

On Jan. 20 this year, the newly revised implementing regulations of the Patent Law took effect, and the patent open-license system was required to be fully implemented. Recently, the CNIPA issued a notice on comprehensively promoting the implementation of the patent open-license system, which focuses on three aspects.

First, we'll enhance policy guidance. We'll guide universities and scientific research institutions to select patents that have strong practicability, wide application fields, and are suitable for implementation in multiple locations for open licensing while inventorying existing patents, thus enabling SMEs to obtain patented technologies at a relatively low cost. We'll communicate the trial guidelines for estimation of patent open license royalties to the public in a well-targeted way and guide patentees to estimate license fees based on in-depth analysis. We will give full play to the role of IPR public service institutions and market-based service institutions, encourage them to provide consulting, trading and other services related to open licensing, and promote supply-demand matching.

Second, we'll optimize the content of our services. We'll promptly answer common questions about open licensing and help patentees standardize their submission of patent open-license statements. We'll guide patent agencies to provide convenient services, such as pre-examination, and facilitate the conversion of preliminary pilot projects into formal open-license agreements. License announcement data will be freely available for public search and use.

Third, we'll improve the supporting mechanisms. A set of mediation measures for patent open-license disputes will be issued, clarifying procedures for case acceptance, mediation, and settlement and guiding concerned parties in properly resolving various disputes encountered during the patent open-license process. We'll also actively coordinate with relevant departments to implement Patent Law provisions, reduce annual patent fees by 15% during the open-license implementation period, and further encourage patentees to participate in patent open licensing.

In the next step, the CNIPA will guide all localities in carrying out the patent open-license policy, promote the efficient operation of the patent open-license system, and transform these systematic advantages into a new driving force for patent commercialization. Thank you.

Xing Huina:

Please continue to raise your hands to ask questions. 

Bauhinia Magazine:

With the advancement of rural vitalization, all local governments have attached greater importance to the cultivation of the geographical indication industry and have actively created local specialty products. What has the CNIPA done to strengthen the protection and use of geographical indications? What are your future considerations? Thank you.

Shen Changyu:

Thanks for your questions. We will have Mr. Hu Wenhui answer these questions.

Hu Wenhui:

Thanks to Mr. Shen. Thanks to Bauhinia Magazine for their questions. Geographical indications are an important type of intellectual property and a crucial support for the development of industries with distinctive local features. In recent years, the CNIPA has comprehensively advanced the protection and application of geographical indications, effectively helping all localities make good use of "local specialties," and promoting regional economic and ecological development. The latest data shows that in 2023, the direct output value of China's geographical indications reached 960 billion yuan, achieving four consecutive increases. Among them, the annual output value of 131 geographical indication products and 408 geographical indication trademarks from key counties receiving national assistance for rural vitalization reached 9.7 billion yuan. Focusing on using geographical indications to contribute to rural vitalization and economic development with distinctive regional features, we have mainly carried out work in the following four aspects.

First, we have consolidated institutional guarantees. We have formulated and implemented a set of measures for the protection of geographical indication products and regulations on the registration and administration of collective trademarks and certification marks. We have also issued a notice on using geographical indications to support rural vitalization and refined related policy system, providing institutional guarantees for the high-quality development of geographical indications.

Second, we have carried out strict protection and management. We have mobilized all localities to strengthen the regulation of geographical indications, launched special campaigns to severely crack down on infringement and counterfeiting, purifying the market environment. We have implemented geographical indication protection projects, supported all localities to strengthen quality control in production areas, ensured the quality and features of geographical indications and have effectively enhanced the market competitiveness of geographical indication products.

Third, we have strengthened the application guidance. We have implemented projects for promoting the use of geographical indications and have selected 220 geographical indications in two batches nationwide, including them in the key list of guidance for promoting the use of geographical indications and thus giving more support to the cause. We have selected typical cases of geographical indications supporting rural vitalization and have promoted relevant experience.

Fourth, we have deepened international cooperation. We have continued to promote the mutual recognition and protection of geographical indications between China and EU, China and France as well as China and Thailand, promoting more Chinese geographical indication products abroad to enhance international popularity. As an example, wines from the eastern foothills of Helan Mountain, which have been included in the list of geographical indication products for mutual recognition and protection between China and the EU, were exported to more than 40 countries and regions in 2023, being sold not only in the Southeast Asian market but also in traditional wine markets such as France and Switzerland, with sales steadily increasing.

In the next step, we will further strengthen work with geographical indications, continue to improve the geographical indication system, and build national demonstration zones for the protection of geographical indication products with high standards. We will also vigorously use geographical indications to contribute to rural vitalization and promote the integration of geographical indications with the development of industries with distinctive local features, ecological conservation, inheritance of history and culture, rural vitalization and opening up, so as to better achieve the goal of "making good use of geographical indications to drive the development of industries and increase incomes of local people." Thank you.

Xing Huina:

Last question, please.

Jinan Times APP:

It is the strategic arrangement of the CPC Central Committee to move faster to boost greater sci-tech self-reliance and strength and become a leading country in science and technology. Intellectual property is essential for encouraging innovation. What CNIPA plans to do in order to build up our national strength in science and technology? 

Shen Changyu:

Thank you for your question. I will answer it. Since the 18th CPC National Congress, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China has seen historic achievements as well as historic changes with scientific and technological endeavors. According to the Global Innovation Index (GII) released by the WIPO, China has risen from 35th in 2013 to 12th in 2023, a full 23 places, ranking top among middle-income economies, which is a huge improvement. The number of global top 100 science and technology clusters owned by China has also reached 24, rising to first in the world.

The National Sci-Tech Conference held not long ago proposed to focus on the strategic goal of building a strong country in science and technology by 2035, strengthen top-level design and overall planning and to move faster with achieving greater self-reliance and strength in science and technology. We will implement General Secretary Xi Jinping's important instruction that protecting intellectual property rights is equal to protecting innovation, give full play to the role of intellectual property rights in institutional supply and technological supply as well as will take active steps to contribute to the building of a leading country in science and technology. We will give priority to carrying out work in the following aspects. 

First, we will continue to develop the system of laws related to intellectual property rights. We will thoroughly implement the newly revised Patent Law and its implementation regulations, accelerate the revision and demonstration of the regulations on the protection of integrated circuit layout designs, further promote the development of rules for the protection of data intellectual property rights, and speed up efforts to establish basic systems for supporting comprehensive innovation.

Second, we will continue to enhance the credibility and efficiency of intellectual property examination, improve the examination standards for new fields and new forms of business, such as big data, artificial intelligence and genetic technologies, strengthen the allocation of examination resources targeting the global frontiers of science and technology, the development of the economy, major needs of the country as well as the health and safety of our people, so as to actively promote breakthroughs in core technologies in key fields and contribute to solving bottleneck technological problems. 

Third, we will carry out a special action on patent commercialization. Just now, we answered a reporter's relevant questions on it. In the next step, we will fully implement the patent open-license system. Mr. Wang Peizhang just now also answered this question. We will build the patent pool for key industries, take solid steps to advance the in-depth integration of scientific and technological innovation and industrial advancement to contribute to the development of new quality productive forces. To deepen reforms granting researchers corresponding powers over scientific and technological advances, it is necessary to properly deal with the commonly discussed rights to use, transfer, and benefit from their scientific and technological fruits. In order to better implement reforms for the empowerment of scientific and technological achievements, we will deepen reforms to fully boost enthusiasm for all kinds of talents in scientific and technological innovation as well as the initiative of application with scientific and technological advances.

Fourth, we will continue to strengthen the whole chain of protection for intellectual property rights, build national demonstration zones for the protection of intellectual property rights with high standards, continue to improve the comprehensive protection, build a modernized protection system for intellectual property rights, and promote the construction of a fairer, more equitable, open and transparent environment for innovation.

Fifth, we will deeply engage in global governance with intellectual property rights, promote the improvement of international rules and standards with intellectual property rights, actively integrate into the global innovation network and make greater efforts to attract the concentration of global innovation factors, so as to contribute to the realization of self-reliance and strength in science and technology with opening up and cooperation.

In the next step, the CNIPA will further conscientiously study and put into practice General Secretary Xi Jinping's new thoughts and conclusions on promoting sci-tech innovation, continue to intensify our efforts to advance tasks with intellectual property rights, so as to contribute to achieving greater self-reliance and strength in science and technology and building a leading country in science and technology. Thank you.

Xing Huina:

That's all for today's briefing. Thanks to Mr. Shen and to all the other speakers. Thank you to all our friends from the media. Goodbye, everyone.

Translated and edited by Liu Caiyi, Yuan Fang, Liu Sitong, Wang Qian, Yan Bin, Zhang Junmian, Yan Xiaoqing, Li Huiru, Zhang Lulu, Zhang Tingting, Xu Kailin, Zhang Rui, Fan Junmei, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Wang Hongzhi, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC)

Mr. Lin Qingmiao, director general of the Bureau of Enterprise Reform of the SASAC

Ms. Liu Shaowei, deputy director general of the Bureau of Financial Oversight and Operational Evaluation of the SASAC

Mr. Fang Lei, deputy director general of the Bureau of Scientific and Technological Innovation of the SASAC

Chairperson:

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

Date:

July 26, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Wang Hongzhi, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), to brief you on relevant developments and answer your questions. Also present today are Mr. Lin Qingmiao, director general of the Bureau of Enterprise Reform of the SASAC; Ms. Liu Shaowei, deputy director general of the Bureau of Financial Oversight and Operational Evaluation of the SASAC; and Mr. Fang Lei, deputy director general of the Bureau of Scientific and Technological Innovation of the SASAC. Now, I'll give the floor to Mr. Wang for his introduction.

Wang Hongzhi:

Thank you. Good morning. At a time when the whole nation is deeply studying and implementing the guiding principles of the third plenary session of the 20th Central Committee of the Communist Party of China (CPC), I am very pleased to meet with you to introduce the situation of high-quality development of state capital and state-owned enterprises (SOEs). First of all, I would like to express my heartfelt thanks for your long-term care and support.

The just-concluded third plenary session of the 20th CPC Central Committee made major arrangements for deepening the reform of state capital and SOEs, fully reflecting the great importance that the CPC Central Committee with Comrade Xi Jinping at its core attaches to SOEs. People in this sector are deeply encouraged and excited. We will comprehensively and deeply study and understand, and effectively implement the decisions.

Since the beginning of the new era, the SASAC and centrally-administered SOEs have resolutely implemented the major directives of the CPC Central Committee and the State Council, firmly promoted high-quality development, and fully and faithfully applied the new development philosophy on all fronts. This has led to substantial, transformative changes in the reform and development of enterprises. Quality and efficiency have significantly improved, the intensity of sci-tech innovation has reached unprecedented levels, the layout and structure have been continuously optimized, the pace of high-quality development has been accelerated, and the strategic support of the state-owned sector has been brought into full play. These achievements can be seen in five areas:

First, the ability to create value has been significantly enhanced, providing a more solid foundation for the high-quality development of enterprises. We have continuously improved the high-quality development index system, implemented special actions such as quality and performance improvements, value creation and brand leadership, and continuously promoted enterprises to become stronger, better and larger. By the end of 2023, the total assets of centrally-administered SOEs reached 86.6 trillion yuan, 2.8 times that of the end of 2012. Added value, revenue and profits have all doubled compared with 2012. Efficiency indicators such as operating income profit margin and overall labor productivity have steadily increased, and the economic operation has maintained steady progress and improved in terms of quality and efficiency.

Second, the capability for sci-tech innovation has rapidly increased, providing stronger momentum for the high-quality development of enterprises. We have fully leveraged the advantages of the new system for mobilizing resources nationwide, making sci-tech innovation our top priority, deeply integrating into the national innovation system, optimizing the innovation ecosystem, strengthening innovation coordination, and focusing on breakthroughs in key and core technologies. During the 13th Five-Year Plan (2016-2020) period, the R&D investment of centrally-administered SOEs increased by an average annual rate of 14.5%. Over the past two years, R&D investment has exceeded 1 trillion yuan annually, achieving a series of landmark results in fields such as aerospace, deep sea, energy and transportation, and making significant breakthroughs in key materials and core components.

Third, the optimization and adjustment of the layout structure have been significantly advanced, providing broader space for high-quality development. We have focused on our main business, developed the real economy and built a modern industrial system. We have made substantial efforts in strategic reorganization and professional integration, leading to the restructuring and merging of 28 groups of 50 enterprises, and the establishment and acquisition of 15 centrally-administered SOEs. We have vigorously promoted the high-end, intelligent and green development of traditional industries, accelerated the formation of a systematic layout of strategic emerging industries, achieving a 32% growth rate in strategic emerging industry investment in 2023, with revenue exceeding 10 trillion yuan for the first time. The control and influence of the state-owned economy in important industries and key fields have been further strengthened, with new advantages in emerging sectors rapidly taking shape.

Fourth, major breakthroughs have been achieved in the reform of state capital and SOEs, further boosting the vitality of high-quality development of enterprises. We have stayed focused on our goals and adopted a problem-oriented approach to continue the implementation of a three-year action plan for SOE reform as well as an initiative to deepen and upgrade SOE reform. The modern corporate system with distinctive Chinese features has been continuously improved, and the reform to convert SOEs into standard companies has been fully completed. We have successfully relieved SOEs of their obligations to operate social programs and have resolved other longstanding problems they have experienced. Comprehensive breakthroughs have been achieved with reforms of the three systems of labor employment management, human resources and distribution. The state capital regulation system has fully leveraged its advantages in terms of specialization, systematization, rule of law and efficiency. A group of new modern SOEs have emerged, featuring new development models, new corporate governance, new operating mechanisms and new structures.

Fifth, the role played by the state-owned sector in serving the national economy and people's livelihood has been fully demonstrated, and the high-quality development achievements of enterprises have been shared among more people. We have maintained ‘for the people' as the essential attribute and have focused on serving the country's most fundamental interests. We have deeply implemented major regional strategies, actively undertaken major projects for the people's wellbeing such as the Sichuan-Xizang Railway and the west-to-east gas transmission project, solidly ensuring a stable and secure supply of basic energy and resources. Since 2013, the total tax and fee payments within the state-owned sector have exceeded 20 trillion yuan. The sector has also introduced and invested in various types of poverty alleviation funds that exceed 100 billion yuan, thus taking the lead in supporting the fight against major disasters and fully demonstrating the sector's sense of responsibility.

Next, we will resolutely implement the arrangements made at the third plenary session of the 20th CPC Central Committee, uphold and strengthen the Party's overall leadership over SOEs, deepen reform of state capital and SOEs, and work to refine the layout and structure of the state-owned sector. We will remain committed to helping state capital and SOEs get stronger, do better and grow bigger with their core functions and core competitiveness enhanced, making new contributions to building a great country and advancing national rejuvenation.

I will stop here for now. Next, my colleagues and I are willing to answer your questions. Thank you!

Xing Huina:

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

Xinhua News Agency:

The third plenary session of the 20th CPC Central Committee made strategic arrangements to further deepen reform comprehensively and to advance Chinese modernization. The resolution that was adopted at the session put forward a series of new requirements focusing on deepening reform of state capital and SOEs. What measures will the SASAC take to implement these strategic arrangements? Thank you.

Wang Hongzhi:

Thank you for your question. As I mentioned just now, the third plenary session made systematic plans to deepen the reform of state capital and SOEs, providing both directional guidance and practical requirements as well as serving as a program of action for our work on state capital and SOEs on the new journey. This week, the SASAC held seminars for heads of central government-owned enterprises and heads of SASAC local offices to study and implement the guiding principles from the session. We initially consider focusing on five aspects:

First, we will remain committed to helping state capital and SOEs get stronger, do better and grow bigger. This is the leading goal in deepening reform of state capital and SOEs. We will continue to accelerate the removal of systematical institutional barriers that impede development through reform, so as to appropriately expand and effectively upgrade the economic output of enterprises, increasing their control and influence capacity in key industries and areas as well as providing strong support for stable and healthy economic and social development.

Second, we will accelerate the formation of new relations of production that are more compatible with new quality productive forces. This is a distinct direction of deepening reform for state capital and SOEs, as well as a defining fact of our time. We will seize the opportunities of a new round of scientific and technological revolution and industrial transformation as well as accelerate the improvement of systems and mechanisms conducive to original innovation, the development of strategic emerging industries and the stimulation of talent vitality. We will also promote the spirit of outstanding entrepreneurs and scientists, advance reforms in organizational structures, operating mechanisms and management systems, and channel various types of advanced production factors toward the development of new quality productive forces.

Third, we will enhance core functions and improve core competitiveness. This is the fundamental requirement for deepening reform of state capital and SOEs. We will focus on the country's needs and most fundamental interests, continuously increasing the functional value of SOEs to forge their unique competitive advantages, and promote enterprises to better fulfill their economic, political and social responsibilities.

Fourth, we will fully deliver on the key reform tasks defined by the plenary session. At the level of the state-owned sector of the economy, our main focus is on refining the layout of the state-owned sector and adjusting its structure as well as steering state capital toward major industries and key fields that are vital to national security and serve as the lifeblood of the national economy, toward sectors such as public services, emergency response, and public welfare, which concern our country's prosperity and our people's wellbeing, and toward forward-looking and strategic emerging industries. At the state-owned enterprises (SOEs) level, the emphasis is on refining the modern corporate system with distinctive Chinese features and building more world-class enterprises. At the state capital supervision level, our focus is on improving the institutions and mechanisms for management and oversight, strengthening strategic coordination and improving regulatory effectiveness. We will also encourage enterprises to boldly innovate and pioneer, implement differentiated and tailored reform measures according to actual conditions, and to fully stimulate enterprise vitality.

Fifth, it is especially important to uphold and strengthen the Party's overall leadership. The fundamental guarantee for successfully completing the reform tasks laid out in the third plenary session is the leadership and capacity building of the Party. We will implement the guiding principles from the national meeting on building the role of the Party within SOEs, ensure that Party leadership is exercised in every aspect and throughout the entire process of reform, leverage the important role of the Party committees (the leading Party members groups) of state-owned enterprises in the governance system, promote the deep integration of Party building with production and operations, and ensure that the reform always moves in the right direction and achieves the anticipated results.

To conclude, in the current and upcoming period, the sector of state capital and central SOEs will treat the study and implementation of the guiding principles of the third plenary session of the 20th CPC Central Committee as a major political task. We will comprehensively study, fully grasp and thoroughly implement these guiding principles, while transforming the strategic tasks arranged by the CPC Central Committee into specific actions and measures. We will forge ahead with even greater vigor to improve and strengthen our work related to state capital and central SOEs, thereby adding new momentum to the advancement of Chinese modernization. Thank you!

National Business Daily:

We have noticed that promoting the coordinated development of state-owned and private enterprises is one of the key reform tasks in the new round of deepening SOE reform. Could you please update us on the progress of this initiative? What are the main considerations and plans for the next step? Thank you.

Wang Hongzhi:

Thank you for your questions. Working unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector is an important part of China's fundamental economic systems, and is also a strength of our system. There is a consensus that both SOEs and private enterprises are important entities in our national economy, with each playing a significant, indispensable and irreplaceable role. The SASAC has always placed great importance on the coordinated development of SOEs and private enterprises. Specific work plans have been formulated to guide and promote deep cooperation between SOEs and private enterprises in order for them to learn from each other's strengths and to compensate for each other's weaknesses, fostering mutual promotion and growth. This has achieved positive results. For more details, I will let Mr. Lin Qingmiao provide further information.

Lin Qingmiao:

Further leveraging the leading role of SOEs to promote the coordinated development of state-owned and private enterprises is a key task in deepening SOE reform. It is also an important cornerstone for building a high-level socialist market economy. In recent years, in the process of creating a new pattern of development and promoting high-quality development, we have been solidly advancing mutual promotion and coordinated development between state-owned and private enterprises. This can be summarized into "four cooperations":

The first is cooperation at the capital level. Since the initiative to deepen SOE reform, central SOEs have actively engaged in equity cooperation with private enterprises and other social capital, with amounts exceeding 390 billion yuan. As of now, central SOEs have invested in over 13,000 companies of various types through shareholding, thus achieving significant progress in capital cooperation between state-owned and private enterprises.

The second is cooperation along the industrial chains. Central SOEs have initiated joint actions, collaborating with upstream and downstream enterprises to reinforce and upgrade the weak links in the industrial chains, and to extend and solidify the industrial chains. This initiative drives the coordinated development of over 5,700 business entities. Behind each "chain leader" company there are numerous private enterprises participating and cooperating.

The third is supply chain collaboration. Central SOEs have lowered procurement thresholds and reduced transaction costs during the procurement process, thus strongly supporting the development of the private businesses. Currently, among the more than two million enterprises in the upstream and downstream supply chains that are directly driven by central SOEs, 96% are private small and medium-sized enterprises.

The fourth is cooperation in scientific and technological innovation. In strategic emerging industries and key areas for future-oriented industries, central SOEs have led to the establishment of 24 innovation consortia, collaborating with private enterprises, universities and research institutes to tackle key challenges. We have made breakthroughs in developing a large number of core technologies with independent intellectual property rights in key fields, such as industrial software, industrial mother machines, computing power networks, and new materials, etc. These advancements have made significant contributions to achieving greater self-reliance and strength in science and technology.

Next, we will improve the rules and institutions for cooperation between various enterprises including SOEs and private enterprises, continue to carry out the coordinated development and project promotion and partnering of SOEs and private enterprises, guide SOEs to build a collaborative and win-win supply chain ecosystem, encourage SOEs to expand openness and sharing of innovative resources, give full play to the strength of SOEs, private enterprises and other types of enterprises in resources, and continue to deepen cooperation for common development. Thank you!

21st Century Business Herald:

We have noticed that the overall production and business operation of central SOEs gained good momentum in the first half of this year. What are the features and highlights that are worthy of attention? What key measures will be put in place during the second half of the year that will further promote the high-quality development of central SOEs? Thank you.

Wang Hongzhi:

I would like to invite Ms. Liu to answer your questions.

Liu Shaowei:

Thank you for your interest in the production and operation of central SOEs. Since the beginning of this year, central SOEs have carried out special actions in a solid way to enhance quality and efficiency. Their economic operations have shown good development trends with stability, structure, quality and efficiency, which has effectively played a role as an anchor and ballast for the national economy. The main highlights and features can be summarized as the following, namely, "being stable in three aspects and showcasing excellence performance."

First, stable production and operation. In the first half of the year, the production and operation of central SOEs were stable and orderly, and the output of key products maintained a steady growth. For example, electricity generation and sales increased by 5.3% and 8.9% year on year, respectively, crude oil output saw a 0.9% year-on-year growth and raw coal output increased by 1.2% year on year.

Second, stable value creation. Their total profit reached 1.4 trillion yuan, an increase of 1.9% year on year. Net profit and net profit that is attributable to shareholders increased by 1.3% and 2.1% year on year, respectively, maintaining a coordinated growth with total profit.

Third, stable contributions to society. They have paid a total of 1.3 trillion yuan in taxes and fees, an increase of 0.5% year on year. The completed fixed asset investment increased by 3.3% year on year; in particular, investment in strategic emerging industries grew by 16.9% year on year and accounted for over 37% of total investments.

Their excellent performance is reflected in operating quality and efficiency. Their cumulative R&D investment reached 434 billion yuan, a year-on-year increase of 2.7%. The labor productivity on an annualized basis reached 789,000 yuan per person, a year-on-year increase of 4.6%. The revenue profit margin reached 7.4%, an increase of 0.3% year on year.

In the second half of the year, facing a complex external environment, we will focus on developing new quality productive forces and effectively advance better high-quality development of central SOEs through "three increases," "three new investments" and "three boundaries" management. "Three increases" mean that we will take the lead in increasing the production and supply of coal, electricity, oil and other important basic products, as well as transportation capacity, in a bid to ensure "increased supply;" we will make a concerted effort to enhance the efficiency of business operations, management and reform, in a bid to ensure "increased benefits;" and we will actively serve the national strategy to drive the common development of upstream and downstream industrial chains, in a bid to ensure "increased investment." "Three new investments" mainly refer to increasing investment in scientific and technological innovation and accelerating breakthroughs in technical bottlenecks in key areas; increasing investment in industrial renewal and accelerating the layout of new industries in new arenas; increasing investment in equipment renewal and accelerating the transformation and upgrading of traditional industries. The "three boundaries" management mainly refers to firmly observing financial boundaries, strictly controlling the rapid growth of debt scale while also relying on the treasury system to strengthen real-time penetration and intelligent supervision and resolutely upholding the bottom line of no major risks; stringently observing business boundaries, controlling irrelevant and excessive diversification, and concentrating superior resources to optimize main business and to strengthen the industry; strictly observing corporate boundaries, controlling the disorderly expansion of multi-layer structures, vigorously compressing management levels, reducing equity levels and the number of legal entities, and plugging management loopholes. Thank you!

CCTV:

In the current SOE reform, "enhancing core functions" has become a high-frequency word. Could you please introduce what SOEs have done in recent years to serve the country's economic and social development? What are the key arrangements for the next stage in this regard? Thank you.

Wang Hongzhi:

Thank you for your questions. Strengthening core functions is a clear requirement set by General Secretary Xi Jinping and the CPC Central Committee for SOEs. In recent years, the SASAC has guided central SOEs to focus on their mission and responsibilities, and advanced their efforts to assume duties with a holistic view and based on the overall situation, making positive contributions to economic and social development. These efforts are mainly reflected in three aspects.

First, central SOEs have created great material wealth, offering powerful support for increasing the country's economic strengths. As was mentioned in the opening remarks, central SOEs over the past decade have experienced a remarkable surge in their assets, revenue and profits. Central SOEs have contributed roughly one-seventh of the total national tax revenue through taxes and fees. Moreover, they submitted 1.5 trillion yuan of state capital gains and transferred 1.2 trillion yuan of state assets to social security funds. In 2023, central SOEs invested 5.1 trillion yuan in fixed assets, an 11.4% year-on-year increase, surpassing the growth rate of total fixed asset investment by 8.4 percentage points. This has bolstered confidence to stabilize social expectations.

Second, central SOEs have created significant strategic assets, offering strong support for the implementation of major national arrangements. They provide nearly 100% of the country's basic telecommunications services, 96% of power grid coverage, 67% of oil refining capacity, 54% of installed power generation and 25% of coal production. Central SOEs have served a crucial role in safeguarding energy resources and food security. They have actively contributed to the country's major strategies with regional development, including the large-scale development of the western region, the revitalization of northeast China, the rise of central China, and the trailblazing development of the eastern region. They have also provided effective support for the construction of the Xiong'an New Area and the Guangdong-Macao In-Depth Cooperation Zone in Hengqin. Moreover, we have actively expanded our international business layout, significantly facilitating the systematic export of China's technology, equipment and products.

Third, central SOEs have created great social benefits, providing strong support for ensuring and improving people's livelihood. They have proactively contributed to rural revitalization efforts, and successfully completed the task of offering assistance to 246 key impoverished counties designated in the national poverty alleviation efforts. They have taken the lead to promote green development, reducing the energy consumption per 10,000-yuan output value by 17% during the 13th Five-Year Plan period (2016-2020). Central SOEs have also made great efforts to help small- and medium-sized enterprises (SMEs) overcome difficulties, such as maintaining low prices for telecom services, ensuring uninterrupted power supply for those in arrears during the pandemic, waiving rents as much as possible, and establishing industrial chain financial platforms to address financing challenges for enterprises upstream and downstream. Central SOEs are committed to ensuring the supply of energy resources and power, and have participated in emergency rescue and disaster relief. After a dike breach occurred in Dongting Lake earlier this month, central SOEs in the construction sector transferred over 100,000 tons of rock and enterprises such as the China Anneng Construction Group Corporation worked day and night to plug the breached dike. Thanks to these efforts, the task was brought to completion 13 hours ahead of schedule. Throughout this period, enterprises in the sectors of energy, power, telecommunications and food maintained uninterrupted 24-hour services, demonstrating central SOEs' strong sense of duty in tough situations.

Going forward, we will make stepped-up efforts to enhance the "values" in five aspects in a bid to ensure that enterprises can better fulfill their functions and responsibilities. First, we will enhance the added value. This aims to increase the overall contribution of central SOEs to GDP, and carry out added value accounting of the public sector. Second, we will enhance the function value. To achieve this, we will establish an evaluation system for state-owned enterprises in fulfilling their strategic missions so that we're able to evaluate enterprises' operational performances and their overall contributions in a more scientific manner. Third, we will improve the added value of economy. To achieve this goal, we will strengthen the mindset of "calculating first, investing later," and optimize the allocation and layout of state capital in a bid to improve value creation capability. Fourth, we will increase the share of revenue and added value made by strategic emerging industries, and make greater efforts to foster innovation-driven, higher-quality growth. Fifth, we will enhance brand value. To this end, we will foster more brands in central SOEs, ensuring their superior quality, outstanding advantages and independent intellectual property rights. By doing so, central SOEs' brand image will be enhanced. Thank you.

Securities Times:

In recent years, central SOEs have made remarkable achievements in the industrial application of scientific and technological advances, developing a lot of advanced equipment for the country, and have been awarded many prizes in science and technology. What measures will the SASAC implement to empower central SOEs as key drivers of scientific and technological innovation? What are the key tasks?

Wang Hongzhi:

I'd like to invite Mr. Fang to answer these questions.

Fang Lei:

Thank you for your questions. We really appreciate your interest in central SOEs' efforts with scientific and technological innovation. Central SOEs have been important hubs in national innovation chains and the backbone for building the country into a strong science and technology nation. In recent years, the SASAC has taken scientific and technological innovation as top priority and have made significant efforts to encourage central SOEs to strengthen scientific and technological innovation, leading to a substantial number of major scientific and technological achievements. We have intensified our endeavors in the following four aspects in a bid to give full play to the role of central SOEs as key drivers in scientific and technological innovation.

We are vigorously advancing breakthroughs in key core technologies. We have established a three-tiered collaborative system that integrates national overall planning, organizes central enterprises to jointly tackle challenges, and encourages companies to make breakthroughs proactively. Focusing on crucial areas such as industrial machine tools and industrial software, we have mobilized millions of researchers to work on the front lines of technological advancement, thereby effectively maintaining the stability of supply chains. In fields such as quantum information, deep space, deep earth, and deep sea exploration, we have established 97 original technology innovation hubs. We have also implemented 11 special initiatives, including "Strengthening Applied Basic Research," achieving significant breakthroughs in cutting-edge areas such as controlled nuclear fusion, 6G network architecture and brain-like chips.

We are focusing on empowering industry-leading enterprises to play a leading role in integrating production, education and research. We guide central enterprises to collaborate with universities, research institutes, and upstream and downstream companies to identify major needs and distill significant scientific questions. We have established 24 innovation consortia and selected 30 leading enterprises across the industrial chain to implement a "large-scale coordinated approach." This strategy promotes full-chain innovation from basic research to industrialization. We are also building a collaborative and efficient industrial innovation organizational mechanism. Additionally, we are proactively opening markets and scenarios to various innovative entities and promoting the application of first-generation equipment and initial batches of new products. Central enterprises are accelerating their transformation into supportive markets for independently developed products.

We are focusing on deeply integrating sci-tech innovation with industrial innovation. We encourage enterprises to use new technologies to upgrade and enhance traditional industries, implement digital transformation initiatives and "AI+" special actions, and accelerate the development of high-end, intelligent and green technologies. We have launched the industrial renewal and sailing initiatives, adhering to both intrinsic development and high-quality mergers and acquisitions. We are vigorously developing nine strategic emerging industries, such as artificial intelligence and biotechnology, and six future industries, including future manufacturing and future energy. We are also implementing the Sailing Enterprise Cultivation Program to rapidly build a group of innovative state-owned enterprises that are "entering new sectors, mastering new technologies, establishing new platforms, and implementing new mechanisms." Through these efforts, we aim to foster and grow new quality productive forces.

We are fully committed to improving the system and mechanisms for technological innovation. We adhere to top-level, practical and needs-oriented principles when refining investment policies. Technological innovation assessments now cover all industrial and research enterprises, with state-owned capital allocated for supporting technological innovation reaching 83% in 2024. For 2022 and 2023, annual R&D investments exceeded 1 trillion yuan. We are enhancing development mechanisms for sci-tech professionals. We encourage enterprises to establish long-term, results-oriented incentive mechanisms and profit-sharing mechanisms for the transformation of technological achievements. We have implemented several measures to support researchers, including a separate wage system that is not subject to overall limits, improved fault-tolerance and immunity mechanisms, and greater autonomy in research activities.

Next, state-owned central enterprises will thoroughly implement the guiding principles of General Secretary Xi Jinping's speech at a national science and technology conference. We will focus on strategically critical areas by further improving institutional arrangements, increasing R&D investments, attracting and developing high-level talent, and achieving international development. Our goal is to cultivate more leading technology enterprises to provide strong support for breakthroughs in key core technologies, enhance original innovation capabilities, and lead the development of a modern industrial system. These efforts will significantly contribute to accelerating high-level technological self-reliance and self-improvement, ultimately helping to build a strong technological nation. Thank you.

The Enterprise Observer:

A new round of large-scale equipment renewal is currently proceeding smoothly. Can you provide an update on the recent progress of related work by central enterprises? What are the considerations and arrangements for future work? Thank you.

Wang Hongzhi:

Thank you for your questions. The new round of large-scale equipment renewal is an important initiative by the CPC Central Committee, focusing on the overall goal of high-quality development. This initiative is widely anticipated across society and represents a significant opportunity for central enterprises to build development advantages. Last Friday, the State Council held a special meeting to deploy additional support for large-scale equipment upgrades. Recently, the SASAC also held a special progress meeting to mobilize related work. The meeting guided enterprises to effectively utilize support policies, coordinate technological upgrades, equipment renewals, and industrial upgrading, ensure initiatives are well-executed and accelerate high-quality development. Mrs. Liu will provide more details on this matter.

Liu Shaowei:

As Mr. Wang just introduced, SASAC recently held a meeting to advance large-scale equipment renewal for central enterprises. The main purpose of this meeting was to guide these enterprises to take the lead and focus on the "five accelerations," ensuring the implementation and advancement of related key tasks.

First, we are quickly upgrading equipment to advanced ones. By swiftly replacing and renovating production devices and equipment that have long service time, low efficiency and outdated technology, we are deploying equipment that is high-tech, highly efficient and highly reliable.

Second, we are speeding up the digital transformation. We are rapidly implementing a series of projects focused on achieving an "intelligent, digital and connected transformation." This involves deeply integrating cutting-edge technologies like artificial intelligence across all aspects of the manufacturing process, rapidly upgrading and replacing outdated equipment with intelligent solutions and extensively expanding our network infrastructure with new technological advancements.

Third, we are accelerating our green transformation efforts. These efforts focus on promoting a range of eco-friendly equipment, aiming to significantly reduce pollution, cut carbon emissions, save energy and lower consumption. We are also working to improve the energy efficiency management of our equipment by rapidly updating and renovating devices and equipment with subpar energy performance. Moreover, we are vigorously planning for the recycling and reusing of resources, thereby establishing a sustainable cycle of eco-conscious product development, manufacturing and recycling.

Fourth, we are stepping up the promotion of intrinsic safety measures. A series of renovations of outdated facilities is in progress to strengthen the application of safety technologies and apparatus. In areas vulnerable to safety risks, initiatives are being implemented to replace manpower with machines, automated solutions and robots. There is an enhanced focus on online monitoring and management of various hazardous sources, with the goal of improving accident and disaster prediction and prevention capabilities.

Fifth, we are advancing our efforts to reinforce effective supply. By developing a new range of devices and equipment, we are pushing forward their applications in various fields including industrial machinery, agriculture, healthcare, education and more. Our goal is to provide technologically advanced, green, low-carbon, energy-efficient and market-adaptive equipment.  

Moving forward, we will maintain the principle of offering all possible support, thus intensifying policy backing for investors. We will guide central SOEs to align closely with the trends of the new technological revolution and industrial transformation, performing a pioneering and exemplary role during this round of extensive equipment upgrades. In the next five years, central SOEs are expected to arrange equipment renewal and renovation with a total investment of more than 3 trillion yuan. Concurrently, we mandate that central SOEs treat different types of enterprises equitably when procuring equipment, focusing on acquiring equipment that is technologically advanced and offers the best value for money. This approach will allow equipment suppliers that are distinguished by superior quality and competitive prices to stand out. Thank you!

Yicai:

Currently, the action to deepen and enhance the reforms of state-owned enterprises has passed the halfway mark. Could you comment on the effectiveness of this round of reforms? What are the key tasks for the next stage? Thank you.

Wang Hongzhi: 

Thank you for your questions. The reform of state-owned enterprises has always been a topic of concern and interest across all sectors of society, which I touched upon in my opening remarks. Specifically, this action, aimed at deepening and enhancing the reform of SOEs, represents a major arrangement by the Central Committee of the Communist Party of China focusing on the roles and missions of state-owned enterprises within the new era. It is highly consistent with the arrangements regarding the reform of state assets and state-owned enterprises made at the third plenary session of the 20th CPC Central Committee. At this stage, over half of the scheduled tasks have been completed and the results, thus far, meet our expectations. For a detailed report, I will now turn over to Mr. Lin Qingmiao.

Lin Qingmiao:

I will further introduce some specific details. In our ongoing initiatives to deepen and enhance the reform of state-owned enterprises, we are cohesively advancing both reforms regarding their functions and roles and institutional reforms, fully leveraging the synergy. Reforms of functions and roles are focused on the missions and responsibilities of SOEs in this new era, with the goal of boosting their core functions and competitive strengths. This enables them to make significant contributions in areas like technological innovation, industry control and security support, thereby better aligning with national strategies. Institutional reforms aim to remove the institutional impediments that affect the high-quality development of SOEs, and to rejuvenate their vitality further. The achievements of these deepened and enhanced reform efforts can be summarized in four aspects:

First, the structural layout has been continuously improved. We have thoroughly implemented strategic restructuring and professional integration, enhancing SOEs' capabilities in serving national strategies and improving resource allocation efficiency. We have firmly implemented industrial renewal actions for central SOEs and launched initiatives to develop future-oriented industries. Emerging sectors are thriving, realizing breakthroughs in various fields. Traditional industries have experienced rapid transformation and upgrading to become high-end, smart and eco-friendly. Second, sci-tech innovation capabilities have continued to strengthen. Many enterprises' sci-tech innovation systems have been reshaped and optimized. SOEs' principal role in sci-tech innovation has become more evident. They've achieved breakthroughs in key and core technologies with inspiring sci-tech innovations across diverse fields. For example, the Chang'e-6 mission was the world's first to collect samples from the far side of the moon and return them to Earth, the C919 large passenger aircraft has been commercialized, and the Shenzhen-Zhongshan cross-sea passage has opened to traffic. Third, the modern enterprise system with Chinese characteristics has matured. Party committees (leading Party members groups) have effectively provided direction, managed the overall situation and ensured implementation. The development of boards of directors has continuously deepened, with related systems improving, and their capabilities in formulating strategies, making decisions and preventing risks enhanced. Enterprise managers work under the tenure system and contracts, and rewards and punishments are determined strictly according to evaluation results. Market-oriented operating mechanisms have improved. Fourth, regulatory efficiency has further improved. We have carried out industry-specific and enterprise-specific evaluations, making our guidance more targeted. We've enhanced supervision and accountability, coordinating different kinds of supervision to create synergy. 

Looking ahead, we will align and integrate important tasks in deepening and improving SOE reforms with the new missions and tasks assigned by the third plenary session of the 20th CPC Central Committee through coordinated implementation. We will focus on enhancing and expanding state-owned capital and enterprises to strengthen their core functions and competitiveness, realizing new breakthroughs with a greater strategic perspective and intensified efforts. We will focus on developing new quality productive forces. In line with national strategic requirements, we will further clarify key investment areas and directions, strengthening our input and planning in research on key and core technologies and forward-looking strategic industries. We will make efforts to enhance development vitality and momentum. We will improve institutional mechanisms for strengthening Party leadership within the context of corporate governance improvement. We will enhance the quality of boards of directors and deepen reforms to the three systems for labor employment management, human resources and distribution to quickly foster new and modern SOEs and create more world-class enterprises. We will focus on improving management and supervision mechanisms and systems. We will lift restrictions while ensuring effective regulation and continuously improve the efficiency of regulation and administrative services. These efforts aim to better protect and develop state-owned assets. Thank you.

ThePaper.cn:

Could you describe the work done by SOEs to quickly foster and develop new quality productive forces through leveraging their advantages? What achievements have been made? What key tasks will be taken to tackle the issues constraining new quality productive forces going forward? Thank you. 

Wang Hongzhi:

Thank you for your questions. Developing new quality productive forces is a major strategic initiative by General Secretary Xi Jinping and the CPC Central Committee. The third plenary session of the 20th CPC Central Committee also made special arrangements in this regard. SOEs play an important role in liberating and developing productive forces, and must contribute to accelerating the formation of new quality productive forces. Since last year, central SOEs have strengthened sci-tech and industrial innovation through unprecedented efforts, achieving positive results.

On the one hand, we have enhanced efforts to spur innovation, coordinating sci-tech and industrial development. We have implemented a series of special-purpose actions to build incubators for original technologies, upgrade industries, foster future-oriented industries, and promote artificial intelligence applications. We have promoted the profound integration of sci-tech and industrial innovation, applying new technologies and modes to catalyze emerging industries and new business formats. We have made breakthroughs with many key and core technologies, created numerous landmark products and developed a number of emerging industrial clusters, with the development of new quality productive forces showing great vitality. 

On the other hand, we have optimized the ecosystem for development, issuing more effective policies regarding new fields and frontiers for development. Taking the opportunity of deepening and improving SOE reforms, we implemented a package of support policies for developing new quality productive forces. For enterprises advancing sci-tech innovation and developing emerging industries, we give additional evaluation points and treat R&D expenditures as profits. This year, more than 80% of the operational budgets of state-owned capital was used for enterprise sci-tech research and industrial upgrading. A total of 250,000 key professionals and researchers received incentives in the form of equity dividends. These efforts created a powerful synergy for developing new quality productive forces.

Overall, central SOEs have formulated a holistic approach and systematic plan for developing new quality productive forces. They have been rapidly improving relevant working mechanisms and systems across various aspects. Looking ahead, we will fully implement the guiding principles of the third plenary session of the 20th CPC Central Committee and the National Science and Technology Conference. By focusing on innovation, industrial upgrading and reforms, we will pool advantageous resources and strengths, and position central SOEs as the primary field and driving force for developing new quality productive forces.

We will work to create an innovation hub and strengthen the primary growth driver for developing new quality productive forces. Focusing on national strategic needs, the development trends of science and technology and the needs of industrial upgrading, we will practice the new system for mobilizing resources nationwide on all fronts and firmly invest in areas with extended periods of research and development (R&D), large R&D investment as well as weak willingness of participation from enterprises of other ownerships. We will establish an upgraded version of the innovation consortia, promote closer collaboration between industries, universities and research institutes, and advance innovation throughout the whole process from basic research to industrial application.

We will work to build an industry leader and further develop the core carrier for new quality productive forces. By means of equipment transformation, technical research, technological upgrading and product development, we will promote the high-end, intelligent and green development of traditional industries. We will give priorities to both endogenous and extended development, continue to improve mechanisms for fostering emerging industries and step up efforts in planning development of new areas and new arenas.

We will work to create a pacesetter for reform and better adapt the relations of production to new quality productive forces. We will speed up the reform of organizational forms and management modes of enterprises, adopt more active, open and effective policies on talent and flexibly carry out various forms of medium and long-term incentives to encourage innovation and creativity. At the same time, we will develop new ways of organization, enhance cooperation among the upstream, midstream and downstream enterprises of the industrial chain and continue to optimize the industrial ecosystem for developing new quality productive forces.

Meanwhile, we also feel that developing new quality productive forces is not only a question that central SOEs must answer but also a common question for various market entities. We will deepen cooperation with various enterprises in new areas and new arenas to jointly develop new technologies and build new industrial ecosystems, advancing the development of new quality productive forces with concerted efforts and continuing to foster new growth drivers and new strengths.

Thank you!

Xing Huina:

Due to time constraints, we will take the last two questions.

Economic Information Daily:

We are concerned about central SOEs' development in the artificial intelligence industry. Previously, the SASAC has launched an initiative to advance AI-driven industrial upgrades. What progress has been made so far? What's the follow-up plan? Thank you.

Wang Hongzhi:

Thank you for your questions and your attention to central SOEs' development in the artificial intelligence industry. Artificial Intelligence is an important driving force for the new round of scientific and technological revolution and industrial transformation. It is also a key engine for the cultivation of new quality productive forces. For a period of time, central SOEs have made active explorations and bold attempts, with positive progress being made in the fields of computing power, data, large models and scenario applications. The development of artificial intelligence relies on cooperation and ecosystems. We will work with all sectors of society to make joint efforts within infrastructure, supply, demand and policy in order to advance industrial development with higher quality and faster speed, better empowering the high-quality development of the economy and society. With regard to this, Mr. Fang Lei will give you a detailed introduction. 

Fang Lei:

Well, let me answer your questions specifically. In recent years, the SASAC has been thoroughly implementing General Secretary Xi Jinping's important expositions on accelerating the development of artificial intelligence. We have conformed with the situation and taken the initiative to accelerate the development of artificial intelligence, stressing overall planning in our work. We have also taken it as the major direction for initiatives to advance industrial upgrading and foster new enterprises for emerging industries as well as formulated and issued action plans. We have organized symposiums on advancing the development of artificial intelligence for central SOEs, launched the AI+ special program, and, as Mr. Wang Hongzhi just mentioned, have made simultaneous efforts in computing power, data, algorithm and applications, with positive progress achieved mainly in four aspects. 

The computing power infrastructure has been consolidated at a faster pace. As of the end of June, the scale of intelligent computing power of central SOEs had doubled year on year. Massive computing clusters comprising 10,000 GPUs have been built in cities including Shanghai and Hohhot. The computing power platform has initially realized multi-core heterogeneous computing power scheduling, effectively supported the training and iteration of general AI large models with a parameter of 100 billion and above, and become more independent and controllable, providing solid support for large-scale application.

The development of AI basic models has been advanced steadily. We have supported general AI large models, such as Jiutian and Xingchen, to strengthen technical breakthroughs and ecological cultivation, and to push forward multimodal large models and cross-modal image generation capacities to catch up with the leading level in China. We have continued to promote the empowerment of large models to industries and have led central SOEs, private enterprises and institutions of higher learning to jointly build models for the industry.

Scenarios for application have been built at a faster pace. Over a hundred application scenarios have been built in areas such as new materials, communications and manufacturing. Large AI models have been primarily applied in areas including electricity, transportation and petrochemicals. Significant progress has been made in reducing costs and increasing efficiency in the areas of scientific research, production and customer services. A batch of high-quality datasets have been developed in such fields as logistics, finance and healthcare. Data governance tools have been developed and value-added services have been gradually offered, such as data processing.

The role in driving the development of industry has been continuously enhanced. Many central SOEs released standard products including software factories and 5G+AI new calling services at the 7th Digital China Summit and the World Artificial Intelligence Conference. They have strengthened cooperation with private enterprises such as Huawei and iFlytek in areas including intelligent networked vehicles and energy and chemical industries, formed supply and demand docking and have jointly developed and promoted the application of large AI models for the industry, creating a sound industrial ecosystem. 

Next, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) will accelerate the development of the artificial intelligence industry through application demonstrations. Centrally administered state-owned enterprises (SOEs) are confident, determined and capable of seizing strategic opportunities. They will work with various partners to provide intelligent computing resources, transform application scenarios and cultivate the industrial ecosystem. This will involve first to thoroughly explore and fully open high-value scenarios, as well as conducting supply-demand cooperation to create a set of industry application demonstration benchmarks. Second, exploring high-quality dataset standards and construction paths, thus building high-quality datasets for key industries in batches. Third, orderly advancing the construction of intelligent computing centers and platforms for both scheduling and operating computing power, as well as strengthening intelligent computing capacity supply to better serve small and medium-sized enterprises. Fourth, focusing on cutting-edge technologies to enhance foundational large model capabilities, improving large model evaluation systems, exploring and establishing industrial development communities and stepping up efforts to empower others. Thank you!

Xing Huina:

Last question.

Phoenix TV:

I'd like to ask a question about the Belt and Road Initiative (BRI). We know that in recent years, centrally administered SOEs have implemented the BRI, creating a number of major projects and landmark initiatives, such as the Jakarta-Bandung High-speed Railway and the China-Laos Railway. As the BRI enters a new stage of high-quality development, how will SASAC and centrally administered SOEs seize this historic opportunity to further promote higher quality and higher level development of the BRI? Thank you.

Wang Hongzhi:

Thank you for your question. Centrally administered SOEs are an important force in China's participation within international competition and cooperation and in the high-quality cooperation under the BRI. Since President Xi Jinping proposed the BRI in 2013, the central SOEs have actively engaged in this great practice. They have invested in and cooperated on over 5,000 projects in participating countries and regions, improving their international operations while creating significant economic and social value for partner countries. The specific achievements are reflected in three aspects:

First, we have deepened infrastructure cooperation. Traditional infrastructure cooperation has progressed steadily and new types of infrastructure cooperation has been actively carried out. A number of landmark projects and demonstration projects have been completed. For example, in the nine months since the Jakarta-Bandung High-speed Railway began operations, it has carried over 4 million passengers. Additionally, telecommunications companies' overseas service networks cover more than 40 participating countries, and the SEA-ME-WE 5 undersea cable project has greatly enhanced communication capabilities along the route.

Second, the focus on green development has become more prominent. We have actively practiced ESG concepts with these enterprises undertaking about 300 key clean energy projects, including hydropower, wind power and photovoltaic projects. Landmark projects such as the Belo Monte UHV DC Transmission Project in Brazil and photovoltaic power station in Qatar are operating smoothly, effectively helping host countries in their green transformation and low-carbon development.

At the same time, we have delivered more benefits to local people. These projects have created nearly one million jobs locally. Centrally administered SOEs actively engaged in livelihood projects. For instance, the Hualong One project that we invested in and built for Pakistan has met the electricity needs of two million local people, while the Côte d'Ivoire urban water supply project benefited 2.3 million people.

Last year, President Xi Jinping delivered an important speech at the third Belt and Road Forum for International Cooperation, proposing eight major actions. The recently held third plenary session of the 20th CPC Central Committee further made major arrangements for improving mechanisms to promote high-quality cooperation under the BRI. The central SOEs will thoroughly implement these plans, leveraging their advantages and strengths, deepening opening up and cooperation as well as accelerating the high-quality development of enterprises' international operations.

We will focus on expanding new channels for interconnectivity, deepening practical cooperation in traditional fields, such as infrastructure, and steadily expanding cooperation in new areas, such as health, green development and digital technology, to shape a new landscape of interconnectivity.

We will focus on creating new benchmarks for cooperation projects, deepening international cooperation in production capacity and equipment manufacturing as well as ensuring the construction and operation of benchmark projects, such as the Jakarta-Bandung High-speed Railway, the Hungary-Serbia Railway and the China-Pakistan Economic Corridor. At the same time, we will actively address livelihood needs and build more "small but beautiful" projects with considerable economic and social benefits.

We will focus on consolidating new cornerstones for secure development, adhering to market-oriented, law-based and internationalized operations. Thus, we will firmly establishing compliance awareness to strengthen risk prevention and control systems, ensuring the safety of overseas projects and personnel as well as helping to promote the steady, continued and high-quality cooperation under the BRI. Thank you!

Xing Huina:

Today's press conference ends here. Thank you to our speakers and to all of our media friends. Goodbye, everyone.

Translated and edited by Wang Yiming, Wang Qian, Li Xiao, Wang Yanfang, Zhang Rui, Huang Shan, Yan Bin, Wang Wei, Gong Yingchun, Yuan Fang, Qin Qi, Li Huiru, Liao Jiaxin, Liu Sitong, Xu Kailin, Zhang Junmian, Cui Can, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Han Jun, secretary of the leading Party members group of the Ministry of Agriculture and Rural Affairs (MARA)

Mr. Zhang Xingwang, vice minister of agriculture and rural affairs

Mr. Wang Lejun, chief livestock officer of the MARA

Chairperson:

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

Date:

July 24, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Han Jun, secretary of the leading Party members group of the Ministry of Agriculture and Rural Affairs (MARA), to brief you on relevant developments and answer your questions. Also present today are Mr. Zhang Xingwang, vice minister of agriculture and rural affairs; and Mr. Wang Lejun, chief livestock officer of the MARA.

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

Han Jun:

Ladies and gentlemen, friends from the media, good morning. Thank you for attending today's press conference and for your continued support of the agricultural and rural work. This is my first press conference since taking office at the MARA, and I am delighted to have this chance to speak with you today. I will update you on the high-quality development in the work relating to agriculture, rural areas and rural residents.

Since the 18th National Congress of the Communist Party of China (CPC), the CPC Central Committee with Comrade Xi Jinping at its core has given top priority to matters related to agriculture, rural areas and rural residents. We have triumphed in the fight against poverty, implemented the rural revitalization strategy, secured historic achievements and seen historic changes in our agricultural and rural sectors. Agricultural departments at all levels have borne in mind the country's most fundamental interests, rigorously applied the instructions of General Secretary Xi Jinping on agriculture, rural areas and rural residents, and consistently implemented the strategies set forth by the CPC Central Committee and the State Council. We have tirelessly strengthened national food security and promoted stable and qualitative growth in agriculture and rural development. We have made solid progress in building up China's strength in agriculture, and all-around rural revitalization has continuously achieved new results, providing strong support for economic recovery and high-quality development.

We are fully committed to ensuring the stable and secure supply of grain and important agricultural products, ensuring that the food supply of over 1.4 billion Chinese people remains firmly in our own hands. By implementing the strategy of sustainable farmland use and innovative application of agricultural technology for national food security, China's grain production has remained stable at over 1.3 trillion jin (650 million metric tons) for nine consecutive years, reaching 1.3908 trillion jin last year, with a per capita grain possession of 493 kilograms. This year's grain production, especially the summer harvest, has been bountiful, increasing by 7.25 billion jin to 299.56 billion jin, setting a new historical high. Particularly in recent years, we have focused on enhancing soybean production, which has improved our self-sufficiency rate by nearly 4 percentage points over two years. The supply of cotton, oil, sugar, meat, eggs, dairy, aquatic products, fruits, vegetables and tea is plentiful, with an increasing number of green, high-quality agricultural products making their way onto the dining tables of our citizens.

We have continued to consolidate and expand the achievements of poverty alleviation, firmly guarding the bottom line of preventing a large-scale return to poverty. During the transition period, we have maintained stable assistance work and policies, continuously consolidating and improving the results of rural compulsory education, basic medical care, housing safety and drinking water safety. We have effectively operated the dynamic monitoring and assistance mechanism to prevent people returning to poverty, focusing on strengthening industrial and employment assistance, and there has been no large-scale return to poverty.

We have vigorously improved agricultural technology and facilities, consistently elevating the modernization of agriculture. The contribution rate of agricultural technological progress has exceeded 63%, with the mechanization of the entire production processes of three staple crops (wheat, rice and corn) basically realized, as well as significant innovations in agricultural technology. We have built over 1 billion mu (about 66.67 million hectares) of high-standard farmland and significantly bolstered our disaster prevention and resistance capabilities. The 10 year fishing ban on the Yangtze River has shown significant results.

We have coordinated the promotion of rural development and governance, and the construction of a beautiful and harmonious countryside for people to live and work in has steadily advanced. We have extended infrastructure and public services into rural areas. Sanitary toilets are used by 75% of rural households. All towns, townships, and villages where conditions permit are now connected by paved roads. Tap water coverage in rural areas reaches 90%. More than 90% of administrative villages have access to 5G. The level of basic public services such as education, medical care and elderly care has continuously improved, and rural residents' self-organized cultural activities are rich and colorful. With rural revitalization, the vast number of rural residents have a greater sense of gain, happiness and security.

We have persistently deepened reforms to continuously stimulate the vitality of agricultural and rural development. We have adhered to consolidating and improving the basic rural operation system, continuously improving the reforms to separate rural land ownership rights, contract rights and use rights for contracted land, ensuring that the nature of public ownership of land does not change, the red line of arable land is not broken, and the interests of farmers are not harmed. The development of suitably scaled-up operations of land and trials to extend rural land contracts by another 30 years upon the expiration of second-round contracts are steadily underway. We have obtained a general picture of rural collective assets, and are now vigorously cultivating new types of agribusinesses, with more than 2.2 million farmers' cooperatives and nearly 4 million family farms. We have improved specialized agricultural services, continued to make good use of rural "specialty products," accelerated the integration of primary, secondary and tertiary industries in rural areas, vigorously cultivated new rural industries and new business forms, steadily promoted the granting of permanent urban residency to eligible people who have moved to cities from rural areas, and continuously created more channels for rural residents to find employment and increase their incomes. In 2023, the per capita disposable income of rural residents reached 21,691 yuan, and the income gap between urban and rural residents narrowed to a ratio of 2.39-to-1 from 2.81-to-1 in 2013. In the first half of this year, the per capita disposable income of rural residents was 11,272 yuan, an actual increase of 6.6%, 2.1 percentage points higher than the income growth rate of urban residents.

Gratifying achievements have been made in agricultural and rural development over the years. We owe these achievements to the leadership of the CPC Central Committee with Comrade Xi Jinping at its core and the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. The third plenary session of the 20th CPC Central Committee has outlined systematic plans for the key tasks of agricultural and rural reform and development. The MARA will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the decisions and plans of the CPC Central Committee and the State Council, focus on building a strong agricultural sector, and take solid steps to deliver work related to all-round rural revitalization. By doing so, we will write a more splendid chapter on agriculture, rural areas, and rural residents on the new journey.

Next, my colleagues and I will be happy to answer your questions.

Shou Xiaoli:

Thank you, Mr. Han, for your introduction. Now, we will open the floor for questions. Please identify the media outlet you represent before asking your question. You may begin now.

CCTV:

The recently concluded third plenary session of the 20th CPC Central Committee has made systematic plans for further deepening reform, and rural reform is an integral part of it. Could you please tell us what the key points of the next step of reform are and how they will be advanced? Thank you.

Han Jun:

Thank you for your questions. The matters you highlighted are the focus of considerable attention across all sectors of society. We know that the recently concluded third plenary session of the 20th CPC Central Committee has made strategic plans for further deepening reform comprehensively to advance Chinese modernization. I also attended the entire third plenary session. Rural and agricultural reform occupies a considerable portion of the resolution adopted at the plenary session. The resolution dedicates an entire chapter to systematically outlining plans for promoting integrated urban-rural development. It also clarifies the key tasks of rural reform, providing important guidance and a foundation for promoting rural reform on the new journey. The MARA will thoroughly study and grasp the guiding principles of General Secretary Xi Jinping's important speeches, carefully plan and solidly implement the key tasks of agricultural and rural reform, and add momentum and vitality to all-round rural revitalization. We will focus on three aspects of work, which are also the key tasks in the three major areas of rural reform.

First, we will consolidate and improve the basic rural operation system. China's reform started in the countryside, and this year marks the 46th year of rural reform. Over these 46 years, what has been the most important achievement of rural reform? It is the establishment of the basic rural operation system. When presiding over the symposium on rural reform held in Xiaogang village of Anhui province on April 25, 2016, General Secretary Xi Jinping stressed that China's rural reform began with properly handling the relationship between farmers and land, and the most significant policy is that we must uphold and improve the basic rural operation system. We often say that the basic rural operation system is the cornerstone of the Party's rural policies. The basic rural operation system requires three pillar policies. First, we must uphold the collective ownership of rural land. Second, we must maintain household operations as the basis. Third, we must ensure that rural land contracting practices remain stable. The resolution adopted at the third plenary session of the 20th CPC Central Committee has outlined specific plans to consolidate and improve the basic rural operation system. The resolution stresses that we will move forward with well-organized trials to extend rural land contracts by another 30 years upon the expiration of the second-round contracts, deepen the reform to separate the ownership rights, contract rights, and management rights of contracted land, and develop appropriately scaled agricultural operations. As the second round of contracts will be extended for another 30 years upon expiration, rural land contracting practices will remain unchanged for 75 years, considering the first round of land contracts at the beginning of rural reform. This demonstrates the requirement for keeping rural land contracting practices unchanged over the long term. The MARA will act upon the arrangements of the CPC Central Committee and earnestly implement the policy of consolidating and improving the basic rural operation system, which is the major rural policy. This year, we have launched trials to extend rural land contracts in three provincial regions: Anhui, where I used to work, as well as Hunan, and Guangxi. Currently, other provinces are also conducting trials in their counties and townships. The general principle is to adhere to the overall extension of contracts and ensure that the contracted land of most farmers remains unchanged. That principle is clearly defined in the policies. Next, we will continue to guide the orderly transfer of land management rights, improve the framework for agricultural operations, enhance the commercial agricultural services, and better encourage the involvement of small agricultural households in modern agriculture. Can small agricultural households get involved in modern agriculture? That's entirely possible. Not long ago, I took a field trip to Hebei and met a 74-year-old lady. I asked her whether she still had land. She answered that she had a 6-mu (0.4-hectare) plot. I asked her whether she had rented the land out. She said no. I asked how she could till the land at her age. She explained that she found someone to help her by placing her land under a trusteeship, covering all aspects of farming. She calculates that placing the land under trusteeship can earn over 200 yuan more per mu than renting it out. She said that by doing that, she could make over 1,000 yuan more. So, why not do that? This 74-year-old lady can effectively manage her land under such commercial agricultural services. Therefore, there are diverse paths to agricultural modernization, and small agricultural households can indeed participate in modern agriculture. Here, I would also like to stress that land transfer must be conducted voluntarily, in accordance with relevant laws, and with proper compensation. Land transfer should not go against the farmers' will, harm their interests, or change the use of the land. We now have specific requirements that strictly forbid the advancement of land transfer by setting targets and tasks or by including the area and proportion of transferring land in performance assessments. In other words, no coercion should be used in relation to land transfer. This is the first key area.

Second, we will continue to put agricultural and rural development first. The resolution includes a dedicated section on "Improving supporting systems to strengthen agriculture, benefit farmers, and enrich rural areas." It makes specific arrangements such as improving the investment mechanisms for rural revitalization, optimizing the system of agricultural subsidy policies, refining the regular mechanisms for preventing rural residents from lapsing or relapsing into poverty, improving the mechanisms for ensuring the incomes of grain growers and see that the prices of grain and other major agricultural products remain at a reasonable level, and establishing an inter-provincial mechanism for major grain-purchasing areas to compensate major grain-producing areas. Prioritizing agricultural and rural development is a key strategy for addressing issues relating to agriculture, rural areas and the well-being of farmers. Specifically, this means prioritizing four areas: appointing officials, resource allocation, funding and public services. This is a clear directive from the CPC Central Committee, and we must translate these priorities into concrete reform measures. There is still much work to be done, and we will focus on implementing detailed and practical improvements. We will take stronger measures in official appointments, resource allocation, funding, and public services. These efforts will address the shortcomings in agricultural and rural development.

Third, we will continue to promote integrated urban-rural development. As General Secretary Xi Jinping emphasized, "Revitalizing rural areas should not be viewed in isolation. We should encourage the manufacturing sector and urban entities to support agriculture and rural development." We must coordinate our efforts in new industrialization, new urbanization, and all-round rural revitalization, establish and improve the institution and policy system for integrating urban-rural development, pursue greater urban-rural integration in planning, development and governance, and promote equal exchanges and two-way flows of productive factors between cities and the countryside, so as to narrow the disparities between the two and promote their common prosperity and development. Therefore, we need to work faster to grant permanent urban residency to eligible people who move from rural to urban areas, and implement the systems for allowing people to obtain household registration and access basic public services in their place of permanent residence. We will push to see that eligible people who have moved to cities from rural areas enjoy the same rights as registered local residents with regard to social insurance, housing support, and access to compulsory education for their children living with them. This is a significant policy. We will protect the lawful land rights and interests of former rural residents who now hold permanent urban residency, protect, in accordance with the law, their rights to contract rural land, use their rural residential land, and share in the proceeds from rural collective undertakings. I want to stress that current policies allow for the voluntary transfer of these rights in return for compensation, but this must be approached cautiously. For example, policies on relinquishing rural residential land rights must be prudent, ensuring farmers maintain a safety net while considering their long-term interests. The use rights of rural residential land are clearly defined by law as a privilege of rural collective economic organization members, and non-members cannot obtain these rights. This is explicitly stated in our laws and policy requirements. Using rural residential land to construct villas or private clubs is strictly prohibited. Additionally, allocating these lands to retired officials or employees returning to rural areas is forbidden. This policy baseline must be strictly adhered to. As the Resolution of the CPC Central Committee on Further Deepening Reform Comprehensively to Advance Chinese Modernization, adopted at the third plenary session of the 20th CPC Central Committee, clearly states, the current policy allows rural households to put houses under their legal ownership to good use by leasing them out, contributing them in the form of shares, and engaging in cooperative ventures. Localities can explore innovations in this regard to ensure that rural residents benefit more from the reform.

Thank you.

Red Star News:

The initiative to build high-standard farmland is a major project for ensuring China's national food security. In recent years, we have made significant progress on this front. Could you elaborate on our achievements and describe future plans to enhance the mechanisms for the development, acceptance inspection, and management and protection of high-standard farmland ? Thank you.

Han Jun:

Mr. Zhang will answer this question.

Zhang Xingwang:

Thank you for your question. High-standard farmland development is vital for ensuring national food security and directly impacts the livelihoods of rural residents. It is both a livelihood project and one that has strong public support. Mr. Han has already provided an overview of our progress in this regard. The CPC Central Committee attaches great importance to this project, which has also attracted widespread public attention. Under the guiding principles of General Secretary Xi Jinping and the directives from the CPC Central Committee and the State Council, various levels of agricultural and rural departments, supported by related departments and agencies, have intensified their efforts and made significant progress. By the end of last year, China had built over 1 billion mu of high-standard farmland, more than 10 million kilometers of field irrigation and drainage channels and over 27 million small-scale farmland water conservancy facilities. These efforts have significantly improved farmland's disaster resilience, ensuring stable production even during severe disasters and increasing yields under normal conditions. This has contributed substantially to the country's ability to maintain grain production at over 1.3 trillion jin (650 billion kilograms) for nine consecutive years. This year, the country has substantially increased investment standards for high-standard farmland, supporting further improvements.

The statistics introduced just now show that the development of high-standard farmland indeed involves numerous aspects and long processes, and covers extensive areas. To ensure the quality of this project, we have meticulously implemented a working mechanism with the central government responsible for overall planning, provincial-level governments assuming overall responsibility, city and county governments ensuring implementation, and the public participating. In collaboration with relevant departments, we have refined institutional standards, strictly focused on task implementation, and ensured its quality. The third plenary session of the 20th CPC Central Committee proposed to enhance the mechanisms for the development, acceptance inspection, and management and protection of high-standard farmland. We will adhere to the principle of putting quality first while attaching equal importance to quantity and quality, take firm and stringent measures, and do everything possible to ensure the quality of farmland development, truly achieving the goal whereby every acre developed is an acre successfully completed. We will focus our efforts in three main areas:

First, we will strengthen development management throughout the entire process. We will reasonably determine the development standards for high-standard farmland in different regions and types, guide various localities to further optimize layouts, clarify development priorities, carry out solid preliminary work such as project design, strictly assume local responsibilities for engineering quality management, and rigorously control quality at every stage, including selection, bidding, materials, construction and acceptance inspection.

Second, we will regularly conduct supervision and inspection. In the near future, the MARA will initiate a quality review and special rectification campaign for high-standard farmland development projects, focusing on issues such as irrigation facilities that are not electrified, not supplied with water, or not functioning properly. We will organize local inspections to identify and categorize issues that need rectifying. This year, we will also conduct random quality checks of projects nationwide on a regular basis. Any issues discovered will be assigned to local authorities for firm rectification, and those responsible will be held accountable in accordance with laws and regulations. Cases suspected of violating criminal law will be decisively transferred to judicial authorities for handling.

Third, we will implement multiple measures to strengthen post-development management and protection. We will collaborate with relevant departments to further refine the relevant systems, urging localities to synchronize plans regarding the parties responsible for management and protection, mechanisms, and supporting measures during the early stages of high-standard farmland development project planning. This will clarify the responsibilities and standards for farmland management and protection, ensuring that the post-development measures are effectively implemented and preventing any gaps or failures in our management. These efforts aim to reverse the tendency in some areas to focus on development while neglecting management, ensuring solid development and better management. Thank you.

Beijing Youth Daily:

At the beginning of the briefing, Mr. Han announced the good news that this year's summer grain yield has reached a historic high. How was such a bumper harvest achieved in the face of frequent meteorological disasters? Also, since the onset of summer this year, many areas have experienced droughts and flooding to varying degrees. Will these affect the autumn grain yield? What safeguards and measures are in place to help achieve abundant grain harvests year-round? Thank you.

Han Jun:

Thank you for your questions. Among the issues relating to agriculture, rural areas and rural residents, food is of the utmost concern. As a large nation with over 1.4 billion people, we must ensure that China's food supply remains firmly in our own hands and cannot afford any lapses in ensuring national food security. As I mentioned earlier, this year's summer grain production increased by 7.25 billion jin, which is the largest increase in the past nine years. This has had a significant effect on stabilizing prices and people's expectations. This year's bumper summer grain harvest can be attributed to two main factors. First, the cultivation area was stable, which is the foundation for increased production. If the area were not stable, there would be no foundation for a good harvest. Last year, various regions actively responded to the unfavorable conditions for autumn sowing and achieved as full planting as possible. The area of summer-harvested wheat reached 346 million mu, an increase of 475,000 mu from the historical high, which was not easy. The second major reason for the bumper summer grain harvest is the increase in yield per unit. Nowadays, agricultural yield increases mainly depend on increasing the yield per unit. To improve yield per unit, good seeds are necessary, but just having good seeds is not enough. Good seeds, good fields, good opportunities and good practices must be closely integrated, and good policies are also necessary. This year, the minimum purchase price for summer grain wheat was raised, which stabilized farmers' expectations. Comprehensive policies and coordinated efforts are ultimately reflected in the increase in yield per unit. This year, the yield per mu of summer-harvested wheat increased by 10 kilograms, a 2.6% increase, which is the largest yield increase in the last five years. We calculated that the improvement in yield per unit contributed over 90% to the increase in summer grain production. In the past two years, the MARA implemented large-scale actions to increase yield per unit, with a focus on major grain and oil crops such as corn, wheat and soybeans. Take wheat as an example. We integrated and promoted key technologies such as deep plowing and soil preparation, post-sowing compaction, and integrated water and fertilizer management. During critical farming periods, we fully implemented the "one spray, three protections" method (that features a spray mix of insecticides, fungicides, foliar fertilizers, and plant growth regulators), focusing on the unified prevention and control of diseases and pests, and emergency treatments. During the summer harvest period, we organized over 600,000 combine harvesters for cross-regional operations, which was quite spectacular. It is through coordinated efforts in increasing production and reducing losses that we achieved this bumper summer harvest. Working in the provincial government, I have a deep understanding of this. To ensure that our food supply remains firmly in our own hands, the main leaders in the provincial government must attach much importance to these technical measures. When these measures are in place, they will yield good results.

This year's summer grain output was a bumper harvest. This is good news. However, autumn harvests, accounting for three-quarters of the yearly output, are more important and attract more public attention. Since the beginning of this summer, floods have been wreaking havoc in the south while droughts are making trouble in the north. Heavy precipitation even changed some regions from being in drought to flooding within a few days. Before returning to Beijing, I worked in Anhui province, where there is both northern and southern climatic features. Northern Anhui first experienced extreme droughts, and then floods. Similar situation has also occurred in Henan province, where droughts changed into floods within a day or two. It is estimated that the current national crop damage area is larger than last year's, but the disaster area decreased by more than 6 million mu (400,000 hectares) year-on-year. According to our real-time monitoring, the country's area of autumn grain increased steadily over the previous year, and crop growth was generally normal. I went to Hebei province on Sunday to find out more about the droughts and then went to Heilongjiang province to check the crops. Since Henan recently has been severely impacted by the disaster, my colleagues went there as soon as possible to work with local governments on disaster mitigation and grain production.

We know that from late July to early August is a critical period not only for fighting against floods and droughts, but also for increasing autumn grain output. We will make all efforts to work on related sectors. I told my colleagues to fully estimate the difficulties and focus on flooding and drought prevention as well as disaster relief, especially in major grain-producing areas and hard-hit areas. Differential measures will be carried out in disaster-stricken areas. For waterlogged farmland, work will be focused on the management of ditches to speed up drainage. In some places, drainage ditches alongside roads and fields were blocked. Currently, we are working on dredging some channels to ensure the water be discharged. Corn cannot survive if it is drowned for three consecutive days. We will try every way possible to expand water sources so that drought-stricken farmland will be irrigated in time. For farmland with total crop failure, work will be focused on replanting and reseeding in accordance with local conditions. If a place is currently not suitable for growing grain that needs a longer growth cycle, it can be used to plant vegetables. In this way, we will not leave the farmland uncultivated. Recovery of agricultural production after disasters will be accelerated. We are now organizing agricultural technicians and employees of the agricultural and rural affairs departments at all levels to work at the grassroots level in person, providing precise guidance and fine services to villages and rural residents to guarantee autumn and full-year harvests. Thank you.

Nanfang Daily, Nanfang Plus:

At present, hog raising can help farmers turn a profit, but dairy and beef cattle breeding is still in the red. How will livestock production and supply change in the second half of the year? What measures will be taken to stabilize the development of animal husbandry? Thank you.

Han Jun:

Mr. Wang will answer your questions.

Wang Lejun:

Thank you for your questions. The production of meat, eggs and milk has increased since the beginning of this year. As Mr. Han just mentioned, the supplies of meat, eggs and milk are generally abundant. In H1, the output of pigs, cattle, sheep and poultry increased by 0.6%, egg production up 2.7% and milk yields grew 3.4% year on year. The market supply of livestock products was sufficient, with prices staying low. Take hog production as an example. Under the combined effect of market adjustments and production capacity regulation, hog production capacity has dropped from a high level and hog prices have taken the lead to rise, making hog breeding a profitable industry again. Our statistics show that hog farmers recently can earn 400 yuan after selling a single pig. Prices for dairy and beef cattle still has fallen sharply. In H1, beef and fresh milk prices fell 12.1% and 12.5% year on year, respectively. Beef and dairy cattle farming is suffering losses.

With regard to future development trends in H2, hog production is expected to maintain good momentum and perform well both in production and sales. I would like to share some statistics with you. In June, the number of breeding sow stocks reached 40.38 million. This is equivalent to 103.5% of the normal population of 39 million and within the green and reasonable range of production capacity regulation. At the end of June, the stocks of medium-sized and big pigs fell 6.4% year on year. However, as hog prices are rising, farmers may be reluctant to sell pigs now and may continue to feed big pigs to make them heavier and more valuable, therefore, the market supply is generally sufficient . Due to inertial growth of supply, prices for dairy and beef cattle will remain low in the short term, making cattle-raising business more difficult. Next, we will continue to strengthen our efforts to implement more effective measures.

Looking forward, the ministry will focus on the following five aspects to stabilize livestock production.

First, we will better regulate production capacity. Recently, hog production has stayed in a green and reasonable range. We will continue to keep 39 million breeding sow stocks as a "main switch" of regulation, do a good job in regulating production capacity and implementing policy and other supporting measures, striving to guarantee production capacity within a reasonable range.

Second, we will enhance early warnings and guidance. We will closely monitor the quantity changes of breeding sows, newborn piglets as well as medium and large pigs. Through this effort, we aim to guide pig farms and farmers to sell hogs at the right time to secure profits, avoiding price spikes or drops due to overstocking or sudden sales, particularly to prevent a significant drop in prices after the Spring Festival consumption peak next year. For beef and dairy cattle, we will guide farms and farmers to refine their herd structures and appropriately eliminate older and less productive cattle, thereby better matching production with market demand.

Third, we will focus on helping overcome difficulties. We will guide major milk-producing provinces in effectively implementing relief measures such as increased subsidies for raw milk purchases and spray drying of raw milk into milk powder, promoting cost-effective and efficient farming models. We will organize and implement policies aimed at expanding and improving basic breeding cattle, converting grain to fodder and promoting whole-county dairy production capacity. Additionally, we will guide local governments to increase credit and insurance support for farms and farmers to prevent excessive culling of breeding cows.

Fourth, we will prevent major animal epidemics. We will implement and improve regular epidemic prevention measures and continuously strengthen the prevention and control of major animal epidemics, such as African swine fever, highly pathogenic avian influenza and foot-and-mouth disease, as well as post-flood epidemic prevention. Preparations for autumn animal epidemic prevention will be made in advance to ensure no regional major animal epidemics occur.

Fifth, we will upgrade the industry. We will vigorously render the industry more modernized, organized and industrialized, aiming to extend its industrial chain and increase the added value of products. We will advance integrated development of farming and processing as well as encourage enterprises to improve the mechanism of helping farmers increase income through order-based production and signing purchase and sale contracts, thus ensuring farmers benefit more. We will continue to implement the soybean meal reduction and substitution initiative and advance the resourceful use of livestock and poultry waste, so as to promote green development in animal husbandry. Thank you.

Zhinews of Shenzhen Satellite TV:  

The national science and technology conference held last month made new deployments for achieving greater self-reliance in science and technology at a faster pace. Just now, Mr. Han also mentioned sci-tech innovation in agriculture. Could you share the measures the MARA has taken to accelerate agricultural sci-tech innovation and future plans? Thank you.

Zhang Xingwang:

Thank you for your interest in agricultural science and technology-related work. Just now, Mr. Han mentioned the major planning and arrangements in this regard. In fact, through years of work, we have deeply recognized the indispensable role of science and technology in ensuring stable grain production and high-quality agricultural development. The strength of science and technology keeps growing, and the potential for agricultural development largely lies in them. On the new journey of the new era, we must ensure the stable and secure supply of food and other important agricultural products for over 1.4 billion Chinese people. Given the limited arable land, the fundamental solution for stable and increased production lies in science and technology. As Mr. Han just said, our scientific and technical personnel are actively providing services and guidance on the front lines of agricultural production as well as disaster prevention and mitigation. Since the 18th CPC National Congress, significant progress has been made in agricultural sci-tech development. In 2023, advances in agricultural science and technology contributed 63.2% to agricultural development, an increase of about 10 percentage points compared to 2012. This is a remarkable achievement and a crucial reason for the stable development of our grain and agriculture in recent years. However, gaps still exist between our overall sci-tech level and advanced international levels. Globally, a new round of agricultural sci-tech revolution characterized by biotechnology and information technology is brewing major breakthroughs, and countries are vying for staying ahead of the curve. We must not fall behind. Currently, we are thoroughly studying and implementing the guiding principles of the third plenary session of the 20th CPC Central Committee and the national science and technology conference. We will work to achieve greater self-reliance and strength in agricultural sci-tech development in according to the decisions and deployments of the CPC Central Committee and the State Council.

First, we emphasize enhancing overall efficiency by improving the system. Currently, there is a certain degree of fragmentation, low-level repetition and homogeneous competition among agricultural research institutions. At the beginning of this year, our ministry established the Leading Group for Scientific and Technological Innovation and the Science and Technology Innovation Strategic Advisory Committee to concentrate on optimizing the agricultural science and technology innovation system. We aim to effectively leverage the role of national laboratories and further clarify how central, provincial and municipal-level agricultural research institutes fit within the overall framework. We will define the roles of research institutions, agricultural universities and agricultural technology enterprises. We are using policy guidance, innovative mechanisms and performance evaluation to mobilize and leverage the strengths of innovation entities of all types and at all levels. This approach will help these entities complement each other's advantages and move in a unified direction. We will utilize the new nationwide system to enhance overall efficiency and solve major scientific and technological issues constraining agricultural development.

Second, we emphasize innovation with a focus on industrial application. We insist that research topics originate from industry needs and that research results should be applied in production practices. We collect demands from industries, conduct research and demonstrations based on real-world scenarios, and have users evaluate and accept the outcomes. To determine the effectiveness of research results, we must assess their performance within the relevant industry. This approach addresses the disconnection between science and technology and the economy. In the first half of this year, 17 central ministries and commissions, including the MARA, jointly identified 401 technological needs. We have compiled the 2024 project application guide for the National Key R&D Program, which will be announced soon. These methods aim to further enhance the precision and effectiveness of research. We target critical industry needs, such as developing high-oil and high-yield soybean varieties and intelligent high-end agricultural machinery. We're concentrating efforts from various sectors to tackle these challenges. In this process, we must leverage the strengths of the Chinese Academy of Sciences, the education system, and the agriculture and rural affairs system. We should gather the country's true strengths in this field to address key challenges and fully utilize the pivotal role of leading agricultural technology enterprises in research and innovation.

Third, we emphasize ensuring scientific research effectively transitions into practical applications. We strive to connect the entire chain of scientific research, experimental development, and application promotion. By reforming and enhancing the agricultural technology extension system, we aim to leverage the leading role of the National Agricultural High-Tech Industry Demonstration Zones. We will improve service models such as technology commissioners, technology courtyards, and expert compounds, and support new types of agricultural business entities and technology service enterprises in providing technological services. This will accelerate the transformation of scientific and technological achievements into practical productive forces.

Additionally, we emphasize motivating and invigorating talent. We will improve talent incentive and evaluation mechanisms, select a number of agricultural research institutions and explore pilot reforms in evaluating scientific research personnel. We will vigorously promote the spirit of scientists in the agricultural sector and stimulate the innovative vitality of agricultural researchers. We will focus on leveraging major agricultural science and technology projects and important innovation platforms, such as the Seed Industry Revitalization Action Plan and key technological breakthroughs in agriculture, to cultivate and attract strategic scientists, leading scientific and technological talents, and innovation teams. In particular, we will emphasize cultivating young scientific and technological talent to continuously expand the agricultural science and technology talent pool.

Thank you.

Farmers' Daily: 

This year, China's No. 1 central document for 2024 recommends applying the experience of the Green Rural Revival Program and advancing all-round rural revitalization strongly and effectively. Could you provide an update on the progress of this work so far this year? How are different regions identifying key entry points based on their specific conditions to ensure that farmers truly benefit? Thank you.

Han Jun:

I will answer this question. As everyone knows, the theme of China's No. 1 central document for 2024 is to apply the experience of the Green Rural Revival Program and advance all-round rural revitalization strongly and effectively. The tasks for agriculture, rural areas and rural residents outlined in this year's No. 1 central document can be summarized as "two assurances, three enhancements and two strengthening measures." The "two assurances" focus on ensuring national food security and preventing large-scale poverty recurrence. I addressed both aspects when responding to reporters' questions earlier. The "three enhancements" aim to improve rural industrial development, enhance rural construction and raise rural governance standards. The "two strengthening measures" involve bolstering the dual drivers of technology and reform, while reinforcing measures to increase farmers' income.

As you all know, the "Thousand Villages Demonstration and Ten Thousand Villages Renovation" project was a significant decision made by Comrade Xi Jinping shortly after he began working in Zhejiang province. He spent 118 days visiting 11 prefecture-level cities and inspecting villages carefully to fully grasp the general situation of the province and its agricultural conditions. During my work in the agricultural sector, I have visited Zhejiang multiple times to research and study the implementation experience of the project. Over the past 20 years, the CPC Zhejiang Provincial Committee and the provincial government have steadfastly followed the direction pointed out by General Secretary Xi Jinping, with successive administrations carrying out the work, adhering to a consistent blueprint and exploring a scientific path for improving rural living environments, comprehensively promoting rural revitalization, and building a Beautiful China. The experience of the "Thousand Villages Demonstration and Ten Thousand Villages Renovation" project has gradually been promoted nationwide. Since the beginning of this year, various regions and departments have earnestly implemented the arrangements of the "No. 1 central document," learning from and applying the experiences of the project based on local conditions. They have strengthened organization, leadership, fiscal guarantees and financial support, implementing a great number of pilot demonstration projects. The key tasks of all-around rural revitalization have been steadily advanced and the achievements of poverty alleviation have continued to be consolidated, with the levels of rural industrial development, rural construction and governance being steadily improved. The overall situation of agriculture, rural areas and rural residents continues to show signs of stable improvement and quality enhancement.

Moving forward, we will take profound and real measures to promote the learning and application of the experience of the "Thousand Villages Demonstration and Ten Thousand Villages Renovation" project and achieve greater accomplishments in rural revitalization. The key is to learn the development philosophy, the right work approach, and promotion mechanisms of the project, especially to establish a long-term mechanism for promoting all-around rural revitalization. Learning from and applying the experience of the project and establishing a long-term mechanism for promoting all-around rural revitalization is a clear requirement put forward by the third plenary session of the 20th CPC Central Committee. Rural revitalization should run through the entire process of building a great country and national rejuvenation. How should this long-term mechanism be established? Since I started working in the ministry, I have thought hard and conducted research on this issue. Currently, we propose focusing on five main areas in our practical work:

We need to concentrate our efforts on accomplishing practical tasks that rural residents can feel and benefit from. We should aim to provide rural areas with basic modern living conditions. Starting with addressing the urgent needs and concerns of rural residents, we need to focus on improving rural living environments to promote the treatment of rural garbage and sewage and the renovation of rural toilets based on local conditions and improve the overall appearance of villages. We should accelerate shoring up weak links in infrastructure such as rural roads, drinking water and water supply, as these areas still have shortcomings and some are burdened with heavy debts. We must improve the public service system in rural education, elderly care, health care and culture.

We should focus on industrial employment to increase farmers' income. The central task of the "agriculture, rural areas and rural residents" work is to increase farmers' income and make their wallets bulge. In this regard, each region should develop "local specialties" based on local conditions, continuously expanding industries for rural prosperity and especially enhancing new rural industries and business forms. E-commerce is a new industry, with more and more agricultural products being sold online. Rural homestay is a new industry and also a new business form. When I worked in Anhui province, the number of homestays there doubled last year. Visiting homestays can generate income from renting out rooms, and more money can be made from meals. When guests leave, they may also buy local products they find tasty. The model of one sale leading to another maximizes agricultural comprehensive benefits. Therefore, expanding internal rural employment and increasing farmers' income have great potential in terms of new industries and business forms. We encourage enterprises to go to rural areas to develop agricultural product processing and tourism, and to involve farmers and help them get rich, rather than squeeze them out. In summary, we need to continuously expand channels for rural employment and opportunities to increase incomes to promote sustainable and stable growth in farmers' income, and make solid progress toward common prosperity.

We need to identify effective methods and practical tools to enhance rural governance. We should continue to strengthen grassroots Party organizations in rural areas and improve the rural governance system that combines self-governance, rule of virtue and rule of law under the leadership of Party organizations. In recent years, we have promoted some pragmatic and effective rural governance methods, such as the points-rewards system. Now, many rural areas across the country have implemented the points-rewards system, whereby households can earn points for having tidy courtyards, enthusiastically participating in collective welfare, or maintaining good mother-in-law and daughter-in-law relationships. These points can be exchanged for daily necessities, and points can also be deducted. Rural residents say that accumulating points is like accumulating virtue, which is a pragmatic and effective rural governance approach. We also need to leverage the positive role of village rules and regulations in promoting public order and customs, continuously changing outdated social mores and addressing prominent issues of people's concern such as high bride prices and extravagant funerals.

We will promote social civility in rural areas, from outward appearances to inner values. Rural revitalization should focus on both physical transformation and inner strength, aiming not only to fill farmers' pockets but also to enrich their minds. This involves advancing both material and cultural aspects of civilization. We will effectively organize and carry out a series of activities for rural cultural revitalization. Key initiatives include successfully hosting the Chinese Farmers' Harvest Festival and strengthening the protection and inheritance of excellent farming culture. Additionally, supporting people in rural areas in spontaneously conducting public cultural and sports 

We will build rural areas that are comfortable and beautiful to live in, and fit for work under the guidance of sound planning. The principle of "plan first, build later" is a key lesson from Zhejiang's Green Rural Revival Program. It is essential to start with practical conditions, approaching village planning in an organized and categorized manner, with a particular focus on enhancing the quality and effectiveness of these plans. It is not necessary for every village to have a plan; what matters most is practicality and effectiveness. Through sound planning, we can craft a distinctive and beautiful rural landscape. The city offers a vibrant life, while the countryside meets the people's aspirations better. By employing sound approaches, we can highlight the unique beauty of our villages. Thank you.

Shou Xiaoli: 

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

Sannongfabu:

Over the past few years, as resource and environmental constraints have tightened, we've noticed a shift toward greener farming practices. Can you tell us how green development in agriculture is coming along? Additionally, what plans are in place to further advance this initiative? Thanks!

Zhang Xingwang:

Thank you for your questions. If we take a walk in the countryside during this season, we will witness the influence and appeal of green initiatives. Green development is the basic characteristic of high-quality growth and is intrinsic to agricultural development. Since the 18th National Congress of the CPC, guided by Xi Jinping Thought on Ecological Civilization, we have continuously improved the systems and mechanisms for the green development of agriculture. We unveiled the first special plan for the green development of the country's agricultural sector during this period, accelerating the shift toward eco-friendly production methods and lifestyles. These green agricultural initiatives have yielded positive results. First, the quality of arable land has consistently improved, with the national average grade now at 4.76, up 0.35 compared to a decade ago, correlating to an increase of 35 kilograms of grain yield per mu. Second, agricultural water use efficiency has significantly improved. The effective utilization coefficient of farmland irrigation water is now 0.57, a 0.05 increase over the past decade, saving over 48 billion cubic meters of water annually. Third, the utilization rates for fertilizers and pesticides have seen substantial increases; they now exceed 41%. The comprehensive utilization rate of livestock and poultry manure reached 78%, that of straw exceeds 88%, and recycling of agricultural film has stabilized above 80% in recent years. We are continually progressing, transitioning ecological burdens into valuable green assets. Fourth, the number of high-quality agricultural products has increased, and the total count now stands at 78,000. This includes green, organic, and nationally renowned special and excellent new agricultural products, as well as those with geographical indications. The compliance rate for agricultural product quality and safety monitoring remains stable above 97%. Fifth, resource wastage has decreased, with a green distribution system for agricultural products progressively being established. A standout achievement is the expansion of cold storage facilities in many major production areas. These facilities have considerably reduced the waste of fresh produce, like vegetables and fruits, during preservation, transport and storage. For example, apples harvested last year and purchased this season still maintain almost the same superb quality and taste as when freshly picked. Such advancements showcase the success of our multi-faceted green development efforts, providing tangible benefits that enrich our everyday lives.

Next, we will thoroughly implement Xi Jinping Thought on Ecological Civilization, adhere to the concept that lucid waters and lush mountains are invaluable assets, and continue to promote a high-quality and green approach to agriculture, constantly enhancing the ecological foundation for high-quality agricultural development. Our focus will be on four aspects:

We will intensify resource utilization, mainly focusing on land and water. We will strengthen farmland protection and quality improvement, integrate land use with soil conservation, address degraded farmland, and promote water-saving practices in agriculture through agronomic, variety, engineering and management measures to enhance the efficient use of water in agriculture.

We will minimize input materials, mainly focusing on chemical fertilizers and pesticides. The overuse of chemical fertilizers and pesticides still persists in some regions. We will implement scientific fertilization and efficiency enhancement initiatives, and promote green and integrated prevention and control of crop diseases and pests, achieving reduction and efficiency gains. For example, the integrated approach to pest and disease prevention and control and the use of drones for pest control have significantly contributed to the green transformation of production methods.

We will recycle waste into resources, focusing on crop straw, livestock and poultry manure, and plastic mulch. We will develop green farming and breeding models such as pig-biogas-fruit and rice-fish systems based on local conditions, explore incentives for manure utilization, and promote low-cost and local utilization, focusing on converting waste into fertilizer, feed and energy. We will also promote the scientific returning of straw to the land to augment soil with organic matter, efficient straw removal, and the scientific use, recycling and disposal of plastic mulch, achieving both economic and ecological benefits.

We will promote low-carbon industrial chains, mainly focusing on developing eco-circular agriculture. Leveraging major projects such as national modern agricultural industrial parks, advantageous and characteristic industrial clusters, and towns with agricultural strengths that we are promoting, we will lead and drive the green and low-carbon development of the entire industrial chain.

Thank you.

Xinhua News Agency:

This year marks the fourth year of the transition period after winning the battle against poverty. How is the consolidation of the poverty alleviation results going? What are the plans for the next step? Thank you.

Han Jun:

Thank you for your questions. After winning the battle against poverty, how to consolidate and expand the achievements of poverty alleviation is a crucial issue which is highly valued by General Secretary Xi Jinping. He underscored that to ensure that there is no large-scale return to poverty, we should pay attention to monitoring and assistance to prevent people from falling back into poverty, boost internal forces, and continue to consolidate and expand the achievements of poverty alleviation. The task is the foundation and prerequisite for rural revitalization, and it is also the bottom line for comprehensively promoting rural revitalization. This work runs through the whole process of rural revitalization. After winning the battle against poverty, the CPC Central Committee clearly set a five-year transition period for consolidating and expanding the achievements of poverty alleviation. This year is the fourth year, and next year is the fifth year. For more than three years, we have maintained the overall stability of the assistance responsibility, policy support, regional collaboration and work system, and made concerted efforts in all aspects to firmly hold the bottom line of no large-scale return to poverty. The total number of people who were lifted out of poverty with new employment has now remained above 30 million for three consecutive years. Because the most important income of these people lifted out of poverty now depends on working, whether they work locally or elsewhere, their employment must be stable, which is the current situation. The per capita disposable income of rural residents in counties lifted out of poverty in 2021 was 14,051 yuan, and by 2023 it had increased to 16,396 yuan, with the growth rate consistently exceeding the national average for rural residents. In the first half of this year, 32.74 million people lifted out of poverty found jobs, and the per capita disposable income of rural residents in counties lifted out of poverty continued to grow rapidly. Now over the years in areas lifted out of poverty, there have been significant improvements to infrastructure during the process of poverty alleviation, including during the transition period. The appearance of villages has also undergone great changes. If you go to Jinzhai county in Anhui province, it is hard to imagine how poor it was in the past, but the people are now living good lives.

This year is a crucial year for consolidating and building on achievements in poverty alleviation and effectively dovetailing rural revitalization. As I just said, the five-year transition period will expire next year. Now everyone is very concerned about what to do after it expires? The third plenary session of the 20th CPC Central Committee made it very clear that we must refine the regular mechanisms for preventing rural residents from lapsing or relapsing into poverty as well as establish a system of multi-tiered and categorized support for low-income rural residents and underdeveloped areas. We are still studying the policy alignment after the five-year transition period expires. But one thing I think is for sure: the basic assistance and development-oriented aid for underdeveloped areas and low-income residents must be maintained for a long time, and can only be strengthened rather than weakened. We must firmly ensure no large-scale return to poverty with persistent efforts. To ensure this bottom line, the basic assistance and development-oriented aid for low-income residents and underdeveloped areas will only be increased rather than weakened, policy measures cannot be withdrawn, and the intensity of work must continue to increase.

Next, we will think of more ways to enhance the internal driving force of areas and people that have just shaken off poverty, so that the achievements in poverty alleviation will be more consolidated and more sustainable. We will improve and make good use of the monitoring and assistance mechanism to prevent people from slipping back into poverty, with the focus on two aspects. One is accelerating the establishment of a monitoring system to prevent rural residents from lapsing or relapsing into poverty. To further improve the efficiency of monitoring and identification, some big data could be better used to reduce the burden at the primary level. The other is accurately implementing measures of assistance to prevent monitored groups from lapsing or relapsing into poverty. Some of these assistance measures ensure basic living standards for people in difficulty. For those who are unable to work, this bottom line must be upheld. For those who are able to work, development-oriented assistance should be taken to help them find jobs, start businesses, carry out productive activities and increase income. In short, early detection and early intervention should be achieved to eliminate the risk of lapse or relapse into poverty. As of the end of June this year, a total of 60.4% of those being monitored nationwide had stabilized and eliminated risks, and the rest had received support. The 480,000 newly identified people this year had also received targeted assistance. Moving forward, we must speed up the study for a regular mechanism to prevent lapse or relapse into poverty that covers the rural population, and establish a multi-tiered and categorized assistance system for low-income rural populations and underdeveloped areas.

We will continue to strengthen industrial and employment support. In terms of industries, the proportion of central fiscal funds for policy alignment used to support industrial development should be kept stable at more than 60%. According to the actual conditions of areas lifted out of poverty, we will promote the improvement of assisted industries' quality and efficiency and improve the mechanism for uniting rural residents and driving growth of their income. In terms of employment, currently, income from nonagricultural work accounts for 68.7% of the income earned by people who have emerged from poverty. In this regard, we must make good use of labor cooperation, employment support workshops, public welfare jobs and other channels, and do everything possible to expand employment channels for people who have been lifted out of poverty, increase employment opportunities and ensure that the scale of employment is stable at more than 30 million.

We will do a good job in consolidating and building on the achievements in poverty alleviation and effectively dovetailing rural revitalization. We will focus on 160 key counties receiving national assistance for rural revitalization, 35,000 key resettlement areas for people relocated from inhospitable areas for poverty alleviation, as well as other key areas. We will deepen collaboration between the eastern and western regions and encourage stronger and targeted assistance from the central Party and government departments. We will further promote the "10,000 private enterprises revitalizing 10,000 villages" initiative as well as implement a number of projects to shore up weak links and boost development, so that areas and people that have shaken off poverty will not be left behind in comprehensive rural revitalization during the modernization process and will catch up and share the achievements of rural revitalization and modernization. Thank you.

Shou Xiaoli:

Thank you, Mr. Han Jun, as well as thank you to all the speakers and reporters for participating. This concludes today's press conference. Goodbye.

Translated and edited by Wang Yiming, Huang Shan, Xu Kailin, Guo Yiming, Ma Yujia, Zhang Rui, Wang Wei, Lin Liyao, Zhou Jing, Xu Xiaoxuan, Li Huiru, Liu Caiyi, Yuan Fang, Mi Xingang, Liao Jiaxin, Wang Ziteng, Yan Bin, Liu Sitong, Rochelle Beiersdorfer, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Liu Liehong, administrator of the National Data Administration (NDA)

Ms. Luan Jie, deputy director general of the Department of Policy and Planning of the NDA

Mr. Zhang Wang, director general of the Department of Data Resources of the NDA

Mr. Du Wei, director general of the Department of Digital Technology and Infrastructure Construction of the NDA

Chairperson:

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

Date:

July 22, 2024

Xing Huina: 

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Liu Liehong, administrator of the National Data Administration (NDA), to brief you on relevant developments and to take your questions. Also present today are Ms. Luan Jie, deputy director general of the Department of Policy and Planning of the NDA; Mr. Zhang Wang, director general of the Department of Data Resources of the NDA; and Mr. Du Wei, director general of the Department of Digital Technology and Infrastructure Construction of the NDA.

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

Liu Liehong:

I would like to express my gratitude to you all for your interest in and care for the data-related work. The 20th Central Committee of the Communist Party of China (CPC) convened its third plenary session last week. Since then, the NDA has been actively studying, publicizing and implementing the guiding principles from the session. At this juncture, we are holding this press conference to brief you on the specific measures the NDA will take to implement the resolutions of the plenary session and to promote high-quality development of the national data sector. Since its establishment last October, the NDA has followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and deeply grasped its functions. We have focused on advancing reforms to ensure data as a factor of production is allocated by the market, coordinated the development of a Digital China, digital economy and a digital society, aimed to better serve high-quality development through data, and opened new prospects for data-related work.

In terms of reforms to promote market-based allocation of data as a factor of production, we have accelerated the improvement of the foundational institutional system for data. To ensure that data can be produced, flow smoothly, be effectively utilized and remain secure, we have emphasized systematic planning and enhanced policy support. We have studied and drafted multiple institutional and regulatory documents guiding fields including data ownership, circulation and transaction, revenue distribution, security governance, development and utilization of public and corporate data, high-quality development of the digital economy, and data infrastructure construction. Through these efforts, we aim to transform China's vast data resources into new national competitive advantages. During this process, some localities have explored the structural separation of data ownership at a faster pace, advanced the improvement of mechanisms for data authorization, and sped up the improvement of the market system for data as a factor of production, providing strong support for local economic and social high-quality development.

We have accelerated the deployment of data infrastructure, thoroughly implemented the "East Data, West Computing" project, and promoted the development of a nationally unified computing network. Significant progress has been made in areas such as computing power layout, network transmission, monitoring and dispatch, computing-electricity coordination, and security protection. We have studied, developed and expanded policies and measures to foster the growth of the data annotation industry, publishing a list of cities tasked with building data annotation bases. Additionally, we have studied and formulated guidelines for data infrastructure construction, and initiated pilot projects for data circulation and utilization infrastructure, so as to create a secure and trustworthy environment for data flow and use.

We have strived to enhance the development and utilization of data resources. The NDA has, along with other related departments, issued a three-year action plan to promote the use of data as a factor of production (2024-2026), releasing the first batch of 20 exemplary data use cases, as well as identifying and promoting a number of typical application scenarios. At the same time, we are actively promoting reforms of public data resources management and operation mechanisms. By leveraging the development and utilization of public data, we aim to drive the integration and application of various data sources, and vigorously promote the development and utilization of enterprise data resources. Local data management authorities are also actively exploring ways to facilitate compliant and efficient flow and use of data, and establishing diverse application scenarios and models to better unleash the value of data as a factor of production.

In coordinating the construction of a Digital China, the digital economy and a digital society, we have sped up the building of a Digital China, issued the list of key points for the work on building a Digital China in 2024, and made plans for this year's key tasks. We have successfully held the 7th Digital China Summit, during which 470 high-level activities of all kinds were organized with 1.15 million people participating in the offline events in various forms. The full text of the Digital China Development Report (2023) has been released, systematically summarizing the important progress and achievements of the construction of a Digital China. At present, we are working with Guizhou province to prepare for the China International Big Data Industry Expo 2024. We hope all sectors of the society will pay more attention to the expo and actively participate in it.

We have deepened the role of digitalization in empowering high-quality economic development. We have issued key points of the work on the digital economy in 2024 this year, continued to promote the integrated development of the real economy and digital economy, kept focusing on high-quality development as the top priority, accelerated advancing the innovative development of the digital economy, and continued to foster and develop new quality productive forces. 

We have carried out overall planning for the development and construction of the digital society, unveiled a guideline on promoting the development of smart cities and the across-the-board urban digital transformation, and also formulated the list of key tasks for the implementation plan on facilitating common prosperity through a greater and better digital economy, promoting the sharing of digital dividends and effectively enhancing the sense of fulfilment from the digital society.

We have made greater efforts to advance international cooperation in the data field. In June, the inaugural meeting of the Singapore-China Digital Policy Dialogue mechanism was held in Beijing, which focused on strengthening exchanges and cooperation on the cross-border flow of data, artificial intelligence and other agendas China and Singapore are concerned about. We have carried out eight major measures for supporting high-quality Belt and Road cooperation and advanced policy exchanges and program cooperation with 14 countries that have jointly signed the Beijing Initiative on Belt and Road International Digital Economy Cooperation.

This year marks the 75th anniversary of the founding of the People's Republic of China. It is also a crucial year for achieving the objectives and tasks laid down in the 14th Five-Year Plan and an important year for making breakthroughs in laying the groundwork and accelerating the progress in the data work. Next, the NDA will thoroughly implement the guiding principles of the 20th CPC National Congress and the second and third plenary sessions of the 20th CPC Central Committee, study and issue the guidelines on studying, publicizing and implementing the guiding principles of the third plenary session of the 20th CPC Central Committee, and review and apply the valuable experience we have gained from our efforts to deepen reform comprehensively since the launch of reform and opening up, especially in the new era. We will further promote reform related to the market-based allocation of data elements, coordinate the planning and construction of a Digital China, the digital economy and a digital society, accelerate the development of new quality productive forces, advance the in-depth integration of the real economy and digital economy at a faster pace, and speed up the cultivation of a national unified data market, so as to contribute the strengths of data to Chinese modernization. 

That is all for my introduction. My colleagues and I will take your questions. Thank you.

Xing Huina:

The floor is now open for questions. Please identify the media outlet you work for before raising questions.

Nanfang Daily, Nanfang Plus:

The third plenary session of the 20th CPC Central Committee has made plans for further deepening reform comprehensively to advance Chinese modernization. What role will data play in this? How will the NDA advance the reform related to the market-oriented allocation of data elements and effectively unleash the vitality of data? Thank you.

Liu Liehong:

Thank you for your questions. I will answer this one. The third plenary session of the 20th CPC Central Committee has made plans for accelerating the construction of the system and mechanism for digital economy and improving rules and institutions for the data market, pointing out the direction for advancing further reforms in the data field.

China is the first country in the world to consider data as a factor of production. Since the establishment of the NDA, we have deeply felt that data, as a new factor of production, has huge potential value and is constantly changing and evolving. Advancing reform related to the market-based allocation of data elements and promoting their smooth flow and efficient allocation are conducive to giving better play to the role of data, as a new type of production factor, in optimizing the combination of other production factors and achieving innovative allocation of production factors, creating new industries, business models and growth drivers, and promoting the cultivation and development of new quality productive forces. They are conducive to promoting the development of data-based sci-tech innovation capacity and enhancing the new competitive edge in the digital age, by leveraging the strengths of China's enormous market, abundant application scenarios and vast data resources. They are conducive to speeding up digital empowerment, driving economic growth drivers to shift from relying mainly on increasing input of factors of production to making development driven more by innovation, thus promoting high-quality development. They are conducive to improving public management and services, providing solid support for modernizing China's system and capacity for governance.

As data is distinct from traditional factors of production like land and capital, data work tends to be more complicated. For example, data exhibits both positive and negative externalities. On one hand, we promote its circulation and utilization to enhance resource allocation efficiency and foster new industries and business forms; on the other hand, we prevent privacy breaches, data abuses and other potential risks in a bid to achieve more efficient and more secure development. Additionally, as data work covers a broad scope, involves diverse entities and faces complex situations, we need to stimulate the driving forces of all parties and explore governance rules, methods and tools tailored to data characteristics, thereby improving governance effectiveness. For another example, data is both the result of and the resource for advancing digitalization, networking and intelligence. We need to accumulate data resources from digital transformation while deepening it through data development and utilization, with the aim to achieve positive interactions and coordinated development. What's more, it's challenging to balance data development and security. We should strengthen policy support for data development while adhering to data security laws and regulations, actively encouraging trials and exploring innovative development models. As such, to promote reforms related to the market-oriented allocation of data elements, we must rely on reform and innovation and harness the momentum of deepening reforms.

As part of our efforts to thoroughly implement the guiding principles of the third plenary session of the 20th CPC Central Committee, we will focus on reforms related to the market-oriented allocation of data elements, improve the market system and rules for data elements, foster an integrated national market for data, and promote the development and utilization of data elements.

We will adhere to the principle of "establishing the new before abolishing the old," and build and improve basic systems for data. With a focus on system building, we will strengthen top-level design and overall planning, work to formulate policies related to data property rights, circulation and trading, income distribution, and security governance, and expedite the construction of basic systems that accommodate the characteristics of data elements, align with market rules and meet development needs.

We will give full play to the pioneering spirit at the community level and advance data infrastructure construction. We will accelerate the development of a nationally unified computing network and data infrastructure. Just as food requires a cold chain, infrastructure is also necessary for data circulation. We will support local pilot projects to create a "cold chain" for data.

We will adhere to a problem-oriented approach and remove bottlenecks constraining data development and utilization. We will focus on addressing concerns regarding compliance in data supply and utilization, continuously explore new paths for developing and utilizing public data and enterprise data, vigorously promote the "Data Element X" initiative, and tap into and unleash the value of data elements.

We will stimulate and enhance social vitality to strengthen and expand the data industry. We will leverage market mechanisms more effectively, foster and expand data enterprises, improve the data circulation and trading ecosystem, and cultivate a competitive, orderly, prosperous and dynamic data industry.

We will promote reform through opening up and strengthen international cooperation in the digital economy. We will pragmatically engage in mutually beneficial digital economy cooperation, strengthen cooperation platform construction, actively participate in the formulation of data governance rules, and develop new institutions for a higher-standard open economy. Thank you.

CNR:

As the digital foundation for Chinese modernization, computing infrastructure has always gained much attention. What has the NDA done to accelerate the construction of a unified computing network around the "East Data, West Computing" project? What are the considerations and plans for the next step? Thank you.

Liu Liehong:

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

Du Wei:

Thanks for your question. In the digital economy era, computing power is a new quality productive force. To optimize the distribution of productive forces and give full play to the energy advantages of China's western regions, the country proposed the "East Data, West Computing" project. This initiative is based on a comprehensive consideration of factors, including energy supply, geological conditions, climate and environment, data transmission distances, and existing industrial infrastructure. In February 2022, China officially launched the project. This involved initiating the construction of national computing hub nodes in eight locations: the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, the Chengdu-Chongqing region, north China's Inner Mongolia autonomous region, southwest China's Guizhou province, and northwest China's Gansu province and Ningxia Hui autonomous region. Additionally, the project outlined plans for 10 national data center clusters.

Over the past two years, with the joint efforts of relevant departments and computing hub nodes, the "East Data, West Computing" project has made positive progress. As of the end of March this year, more than 1.46 million standard server racks have been installed in 10 national data center clusters, with the overall utilization rate reaching 62.72%, an increase of 4 percentage points over 2022. Network latency between eastern and western hub nodes has generally met the 20-millisecond target. Green power use in these data centers exceeded the national average, with the utilization rate of green power in some advanced data centers reaching about 80%. The power usage effectiveness (PUE) of newly built data centers dropped to as low as 1.10. The implementation of the project has driven growth in related industrial chains, including IT equipment manufacturing, information communication, basic software and green energy. It has also improved the overall level of national computing power.

At the end of last year, we worked with relevant departments to release an implementation plan to speed up the construction of a national computing power network. Five key tasks are outlined in the plan, including coordinating general computing power, intelligent computing power and supercomputing power; coordinating the layout of eastern, central and western regions and large, medium and small cities; coordinating the application of computing power, data and algorithms; coordinating the construction of computing power and green electricity; and coordinating the development of computing power and security. The national computing power network is an expansion and deepening of the "East Data, West Computing" project. It aims to promote efficient, coordinated scheduling of computing resources nationwide and form cross-regional and cross-departmental synergy. This development will provide inclusive, easy-to-use, low-cost, green and secure public computing services for all aspects of economic and social life.

The plan includes specific targets that require greater efforts to achieve. For example, by the end of 2025, new computing power in national hub nodes should exceed 60% of the national total, and green power should account for over 80% of power consumption in new data centers at these hub nodes. Next, we will work with relevant departments and localities to accelerate the construction of a national computing power network. This initiative aims to drive high-quality economic development through advanced computing power. Specifically, it promotes the coordinated development of multi-source heterogeneous computing power and concentrates various new computing capabilities at national hub nodes. It also encourages 400G/800G high-bandwidth all-optical connections between national hubs and demand areas. This includes guiding telecom operators to improve the efficiency of "public transmission channels" and promoting the deep integration of computing and networking. The plan promotes coordination between industry data and computing power, ensures reliable data circulation, and improves data processing capabilities and governance. It also promotes the integrated development of computing power and electricity, strengthening synergy between hub and non-hub nodes. This includes supporting non-hub nodes in the central and western regions rich in green electricity resources to integrate into the national computing power network. Finally, the plan aims to improve the security capabilities of the national computing power network and ensure that high-quality development and greater security reinforce each other. 

That's all for my answer. Thank you!

Yicai:

The NDA recently announced that this year it will successively release policy documents on data property rights, data circulation, revenue distribution and security governance, increasing policy provision. Could you please introduce the work objectives and specific arrangements? Thank you.

Liu Liehong:

I'd like to invite Ms. Luan to answer your questions.

Luan Jie:

Thank you for your question and for your attention to basic data systems. The construction of basic data systems is an important measure for further deepening comprehensive reforms and is a long-term, complex and systematic project. The third plenary session of the 20th Central Committee of the Communist Party of China explicitly called for accelerating the establishment of systems for data property rights attribution, market transactions, proceeds distribution and interests protection, enhancing data security governance and regulatory capabilities, and creating an efficient, convenient and secure mechanism for cross-border data flows. Since the establishment of the NDA, we have prioritized advancing the construction of basic data systems. We are expediting the drafting of policy documents related to data property rights, circulation and transactions, proceeds distribution and security governance. Our goal is to establish and improve basic data systems that create favorable conditions for "data to be available, to flow smoothly, to be used effectively and to be securely protected," continuously enhancing the systemic, holistic and coordinated nature of the market-oriented allocation reform of data elements.

First, we focus on addressing practical challenges by providing specific, clear and actionable rules and guidelines. In response to societal expectations for data property rights attribution, we are widely soliciting issues and difficulties in the field of data property rights from across the country. We conduct in-depth research, seek advice at the grassroots level and refine the rights of data ownership, usage and management to provide institutional guarantees for data supply, circulation and utilization. We emphasize studying specific countermeasures individually, aiming to provide concrete, clear and operationally effective property rights allocation solutions to help all parties confirm their respective rights.

Second, we are committed to promoting circulation and usage to support the cultivation of new quality productive forces and foster high-quality development. Currently, there is a widespread belief that the data element market is still in the phase of "expanding the market," with improvements needed in the scale, efficiency and rules of data circulation and transactions. To cultivate a unified national data market, efforts should focus on building a data circulation and transaction system and setting developmental goals for data circulation and transactions. Regarding the construction of the proceeds distribution system, we place greater emphasis on building incentive mechanisms, utilizing price formation mechanisms and fully mobilizing the enthusiasm, initiative and creativity of all parties involved.

Third, we focus on strengthening pilot explorations to ensure that policies and systems are both derived from practice and effectively guide practice. The data field is evolving rapidly with swift innovation, with policies and systems often lagging behind practical development. Therefore, we will make concise deployments for areas where the path is clear and use pilot programs to explore and advance areas where consensus has not yet been reached. Based on the results of pilot explorations and industry practices, we aim to develop institutions.

In addition, we uphold the security bottom line to resolutely safeguard national security and protect both personal information and business secrets. We aim to better coordinate development and security, explore new security governance mechanisms and integrate security throughout the entire process of data supply, circulation and utilization.

Currently, various documents are being refined promptly. Moving forward, we will implement the tasks and deployments outlined by the third plenary session regarding the construction of basic data systems. Following the principle of finalizing and releasing each document as it is ready, we will advance the issuance of these documents to provide institutional guarantees for unleashing the potential of data elements as well as supporting high-quality economic and social development.

That's all for my response. Thank you.

Xinhua News Agency:

As Mr. Liu just introduced, preparations for the China International Big Data Industry Expo 2024 are already underway. What are the differences between the big-data expo this year and in previous years? Can you introduce this year's highlights and special events? Thank you.

Liu Liehong:

I will take these questions. Thank you for your interest in the Big Data Expo. This year's Big Data Expo is the first to be organized by the NDA and hosted by the People's Government of Guizhou Province. The Big Data Expo has been held for 10 sessions since 2015. With years of experiences, the Big Data Expo has become an important platform for bringing together industry elite, setting the pace for avant-garde trends as well as pooling global resources.

This year's Big Data Expo is scheduled to be held in Guiyang city, Guizhou province from August 28 to 30. We hope that people from all walks of life will pay more attention to and participate in the expo. Themed around integrating digital and intelligent technologies to reshape the future and realize high-quality development of the digital economy, this year's expo features professional exhibitions, releases of achievements, industry exchange activities and serial special events. We hope that, by holding the Big Data Expo, we can further promote the high-quality development of the digital economy, fully tap the potential of data, contribute to building a digital China and take the data industry to new heights.

This year, with a greater emphasis on professionalism, we will invite relevant national ministries and commissions to release a number of high-level, distinctive and influential industry research reports, technical norms, typical cases, etc. Among them, the NDA will also release a series of achievements. This year's Big Data Expo will also be centered on three key areas, namely, the new frontier of the digital economy, basic data systems as well as data empowerment, focusing on industrial development, data space, international collaboration, artificial intelligence (AI), digital transformation, data circulation, digital governance, digital villages, computing power coordination, data security and other themes to carry out industry exchange activities, and select and release major leading sci-tech achievements.

This year, we will also highlight the service aspect, continue to foreground participating enterprises and carry out various activities such as product promotion, trade negotiations, cooperation exchanges and observation tours. We hope that, through the platform of the Big Data Expo, we can build bridges for more enterprises and help Chinese and foreign enterprises find opportunities for business cooperation.

This year we will also highlight the diversity of exhibitions. The theme of high-quality development of the digital economy will run through the entire process and every link of the expo. Six themed exhibition sections will be set up and will cover digital industry, integration of digital and real economy, data trading, digital governance, digital infrastructure and data security. We will invite data, industry, agriculture, finance and other sectors and institutions both at home and abroad to participate. The latest development dynamics, achievements and cutting-edge trends of the domestic and foreign data industries will be fully on display, so that all sectors of society can gain tangible benefits through the Big Data Expo.

Thank you.

Red Star News:

We have noticed that there are still some bottlenecks that restrict the availability, flow, usage and security of data. Regarding the issue of availability, what attempts and efforts have been made to expand the supply of public data? What are the plans for the next stage? Thank you.

Liu Liehong:

I would like to ask Mr. Zhang to answer these questions.

Zhang Wang:

Thank you for the question. Public data is generated by government departments at various levels and relevant enterprises and institutions while performing their duties and providing public services. This data is characterized by its strong foundation, relatively standardized management, and high economic and social value. As a result, both the market and society have placed great expectations on its potential. Currently, public data resources are developed and utilized in three main ways: sharing, opening, and authorized operation. Sharing refers to data sharing and exchange between government departments at various levels. This practice is mainly used to address information asymmetry between different departments and regions, helping governments at all levels better perform their duties and serve enterprises and the public more effectively. In recent years, the State Council has issued six batches of data-sharing responsibility lists, supporting services such as "one visit at most," "online services," and "one-stop government services." Opening refers to making public data or datasets available online, primarily to facilitate free access for enterprises and the public. According to relevant institutions, 226 localities nationwide have established public data platforms, including at the provincial and municipal levels, offering over 340,000 datasets. However, some data resources, while economically valuable, are sensitive. These need to be processed appropriately to ensure security while serving economic and social development. For such data, some regions and departments have begun providing services through authorized operations, accumulating some experience. However, there is still a need to strengthen policy guidance to both support development and regulate operations. 

To better promote the development and utilization of public data resources, the NDA will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee. We will focus on better leveraging market mechanisms to improve the efficiency and effectiveness of public data resource allocation and utilization in several areas. On the one hand, we will continue to enhance government data sharing and public data openness. On the other hand, we will treat authorized operations as an important supplement to sharing and openness, resolving unclear responsibilities in data supply and usage management and insufficient motivation for data provision. Our main approach is to promote the reform of public data resource management and operational mechanisms. We aim to clarify the responsibilities and obligations for data supply, usage and management, stimulating motivation for data provision and market innovation. We are establishing a public data resource registration system, standards for authorized operations, and corresponding information disclosure mechanisms. We're also clarifying compliance policies and management requirements while cooperating with relevant departments to enhance oversight of public data product and service pricing. For public data in governance and public welfare, we advocate conditional free use. We will also support and cooperate with various regions and departments to intensify the development and openness of public data resources. By promoting collaboration between ministries and provinces, as well as government and enterprises, and launching partnerships with relevant departments, regions, and operating entities, we aim to jointly create a positive ecosystem for data resources that ensures they are readily available, easily circulated, effectively used, and securely protected.

That concludes my answer. Thank you.

China Financial and Economic News:

The third plenary session of the 20th CPC Central Committee proposed the construction and operation of national data infrastructure to promote data sharing. What measures has the NDA taken to advance data infrastructure construction, and what specific work will be undertaken going forward? Thank you.

Liu Liehong:

Mr. Du, please answer the questions. 

Du Wei:

Thank you for your questions. As you mentioned, the third plenary session of the 20th CPC Central Committee issued relevant plans on the matter. Data infrastructure serves as the foundational support for the implementation of basic data systems and the efficient development and utilization of data. It is an important instrument for comprehensively promoting the high-quality development of a digital China, the digital economy and the digital society.

Specifically, the construction of data related infrastructure is based upon networks and computing facilities and involves the full cycle of data development and utilization, including data aggregation, processing, circulation, application, and operation, with the aim to utilize data as a productive factor and a kind of resource so as to create value. The construction of data infrastructure is the systematic integration of project construction and institutional development. It covers not only the development of facilities such as platforms and systems, but also designs of standards and norms, and mechanisms and systems. Additionally, it encompasses the application of technological innovations in privacy protection and data identification registration.

Over the past few years, various regions, industries and sectors have actively explored the construction of data infrastructure, resulting in the development of multiple technological solutions to privacy calculus, data spaces, blockchain and data switching service networks. These efforts have laid a solid foundation for the integrated construction of data infrastructure. Recently, the NDA has been organizing the formulation of guidelines on the construction of data infrastructure. This aims to clarify the concept, development vision and construction goals of data infrastructure under present conditions, build a social consensus, define construction directions and promote the establishment of a collaborative, large-scale, efficient, standardized and reliable data infrastructure service system.

Currently, we are focused on the circulation and utilization of data, targeting key industries and typical application scenarios. Based on unified directory identification, unified identity registration and unified interface requirements, i.e. a unified infrastructure foundation, we are deploying and initiating pilot projects for various technological approaches such as privacy calculus, data spaces, blockchain and data switching service networks. We plan data circulation and utilization infrastructure projects from the top down, supporting different cities in taking the lead in trials. By using real-world scenarios to drive technological advancements, we aim to enrich the supply of solutions and promote the efficient and trustworthy circulation and utilization of data across departments, levels, regions and entities.

In conclusion, the construction of the data infrastructure system is a long-term and systematic endeavor. Going forward, we will continue to advance the development of the data infrastructure system by placing greater emphasis on system integration, focusing on key priorities and achieving effective reforms, as required. The aim is to make new contribution to fully unleashing the potential of data elements and achieving their value. We welcome suggestions from all sectors of society, and invite everyone to jointly explore the mechanisms, paths and solutions for data infrastructure construction and contribute their wisdom to the high-quality development of the economy and society and the building of a digital China.

Thank you.

CCTV: 

We have noted that this year's government work report highlights the deepening of innovative development in the digital economy. Since the data industry is an important part of this, what measures will the NDA take next to cultivate and expand the data industry? Thank you.

Liu Liehong:

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

Zhang Wang:

Thank you for your question. Cultivating the data industry is a crucial aspect of the reform of the market-based allocation of data elements. It is also an important link in nurturing the digital economy and developing new quality productive forces. Many people are concerned about what the data industry entails and what forms it includes. We understand the data industry as an emerging industry formed by using data technology to develop data resources into products and services. The main players in this industry, according to our understanding, include enterprises engaged in data technology innovation, resource development and utilization, and data technology-empowered applications. Also included are enterprises involved in the circulation and trading of data products and services, as well as those engaged in the construction of data infrastructure.

It's important to recognize that data technology is advancing rapidly, and the data industry is continually evolving. We will closely monitor these changes to ensure we formulate better policies. Our commitment to nurturing and developing the data industry stems from several key factors:

First, data is a critical production factor. Its economic value is immense, and when utilized correctly, it can significantly enhance the allocation efficiency of other production factors such as labor, capital and technology. Therefore, whether the goal is nurturing new economic drivers or improving total factor productivity, accelerating the development of the data industry is essential to harness data's full potential and energy.

Second, the true value of data only emerges when integrated into economic and social activities. This integration relies on collection, storage, computation, management and application of data, as well as the circulation and trading of data products and services. Thus, it is important to cultivate a group of market players in the areas of technological innovation, resource aggregation, application empowerment, circulation and trading, and infrastructure development.

Third, while the data industry is intrinsically linked with the information and communication technology and internet industries, it possesses unique development characteristics. Current policies supporting high-tech and software companies do not adequately address the needs of data enterprises. By classifying the data industry as an emerging industry and formulating targeted policies, we can better address market concerns, enhance the sense of gain among data enterprises, and align with the laws of technological and industrial development. This approach will effectively pool resources, nurture a group of robust market entities, and enhance the industry's competitiveness.

The NDA places great importance on cultivating the data industry. In implementing the guiding principles from the third plenary session of the 20th Central Committee of the CPC, we are developing policies to promote the industry by leveraging market mechanisms and creating a fairer and more vibrant market environment. On the one hand, we are defining the nature and scope of the data industry, catering to market demands, and nurturing diverse market players. On the other hand, we are maximizing the decisive role of the market in resource allocation and supporting companies in accelerating development in areas such as resource aggregation, technological breakthroughs, product and service offerings, circulation and trading, and infrastructure development. Additionally, we recognize the importance of effectively utilizing policy instruments to facilitate appropriate arrangements in investment plans, talent development and industrial clustering. Many companies have actively involved in the policy drafting process, highlighting the market's keen anticipation in nurturing and expanding the data industry. Building upon thorough research and comprehensive consultations, we will speed up the introduction of supportive policies for the industry's growth.

That's all I have to say on this matter. Thank you.

Hong Kong Economic Herald:

I am particularly interested in China's international cooperation in the digital economy. Could you please share what work the NDA has done in this area? Furthermore, how is the administration planning to align with current development trends to further strengthen international exchange and cooperation in the field? Thank you.

Liu Liehong:

Thank you for your interest in international cooperation in the digital economy. I will answer this question. Data has become a fundamental resource and innovation driver for global economic development. The digital economy and green development are now key areas of focus and cooperation for countries worldwide. The NDA is responsible for promoting international cooperation in the data field and participating in the formulation of international digital governance rules. 

Since its establishment, the NDA has actively fulfilled its responsibilities. We've strengthened intergovernmental data trust and signed memorandums of understanding on the digital economy with over 10 countries, fostering pragmatic cooperation in this field. In June, we hosted the inaugural meeting of the China-Singapore Digital Policy Dialogue Mechanism in Beijing, engaging in thorough exchanges and cooperation on issues such as cross-border data and artificial intelligence. We've also been actively implementing the eight major steps for supporting high-quality Belt and Road cooperation and the Beijing Initiative for Digital Economy Cooperation. We're further aligning with international rules by participating in Digital Economy Partnership Agreement (DEPA) and the UN Global Digital Compact negotiations. Additionally, we're collaborating with relevant international organizations to establish standards in the data field. We're also committed to creating a favorable environment for the development of Chinese and foreign digital enterprises. We support and encourage Chinese companies, especially those in the digital sector, to expand their brands and quality products and services internationally, and to provide good solutions and experiences for digital transformation worldwide. We also remain committed to addressing practical issues for foreign companies in China and providing high-quality services. We welcome companies from all over the world to participate in China's process of marketizing and valorizing data elements, sharing in the dividends and opportunities of development.

Thank you.

National Business Daily:

At the end of 2023, the NDA released the "Data Elements X" Three-Year Action Plan (2024-2026), aimed at fully stimulating the potential of data elements. Could you please provide an update on the progress made in implementing this plan over the past six months? Additionally, what are your future work plans in this area? Thank you.

Liu Liehong:

I'll invite Ms. Luan to answer this question.

Luan Jie:

Thank you for the question. First, let me elaborate on the "multiplier effect" of data elements. This concept refers to data's role as a factor of production in large-scale socialized production. Data elements enhance overall factor productivity by synergizing with other factors of production, such as capital, land and labor. Moreover, data generates diversified value increments through multi-scenario applications and reuse by multiple entities. The fusion of diverse data catalyzes new industries and business models, triggering a multiplier effect on economic output. This phenomenon demonstrates the significant driving force that data, as a factor of production, exerts on economic development.

At the end of last year, the NDA, in conjunction with relevant departments, issued the "Data Elements X" Three-Year Action Plan (2024-2026). Since its implementation, and with the concerted efforts of various departments and localities, we have seen the development and utilization of data successfully driving data supply and circulation. We have made initial progress toward our set goal of using "effective utilization" to drive "sufficient supply" and "smooth circulation" of data.

We are witnessing a continuous enrichment of data-empowered scenarios. We launched a call for "Data Elements X" case studies, which received an enthusiastic response. At the seventh Digital China Summit, we unveiled an initial batch of 20 case studies, showcasing exemplary experiences across 12 industry sectors. By highlighting the integrated application value of data elements across different industries, we aim to continuously stimulate enthusiasm for data development and utilization.

We continue to stimulate innovation in data utilization. The development and utilization of data rely on the coordinated efforts of typical scenarios, high-quality data and innovative resources. In early May this year, we launched the 2024 National "Data Elements X" Competition, providing a platform for competitive exchange on data element development and utilization. To date, 28 localities have initiated local competitions, with each area focusing on practical issues and highlighting its own unique characteristics.

We are accelerating the exploration of data utilization mechanisms. We are addressing challenges faced in various industries regarding data element application, including insufficient supply, poor circulation and unclear application benefits. We are working with relevant departments to jointly research and formulate pilot plans for key industry sectors. These efforts aim to explore new pathways for data development and utilization that are industry-specific and adaptable to different scenarios.

Moving forward, the NDA will collaborate with relevant government bodies to implement the following three tasks. First, we will continue identifying and publishing exemplary cases regarding the use of data as a factor of production. We will release the second batch of such cases during the upcoming Big Data Expo in August, further leveraging their pioneering and demonstrative role. At the same time, we will also launch the national finals for data use solutions in October. The final will draw on experience from various competitions across the country, exploring excellent data use solutions that are valuable, effective and applicable to other areas, in a bid to continuously diversify the enabling environment for data use. Furthermore, we will establish more pilots for data use. Focusing on the tasks of implementing policies, promoting supply, ensuring circulation and demonstrating effectiveness, we will work with relevant government departments to publish and implement pilot plans on data use in key sectors.

That covers everything for now. Thank you.

Xing Huina:

Due to time constraints, we will take one last question.

The Poster News APP:

Small and medium-sized enterprises (SMEs) are a key focus of the overall digital transformation drive. While SMEs in China are expediting their digital transformation efforts, they still face certain challenges. How can we address these challenges? Thank you.

Liu Liehong:

Thank you for your interest in SMEs' digital transformation. I'll take this question. We believe that smart and digital transformation reflects the overwhelming trend of development, and it is a necessity for SMEs. In recent years, the digital transformation of SMEs in China has shifted from theoretical plans to large-scale practice, evolving from a policy-driven approach to a value-driven strategy. While many businesses have made significant progress, challenges remain. Companies that excel in this area are often those with strong core competitiveness, marketable products and high-cost performances. These companies also emphasize the enabling role of digital measures, focus on key areas such as design, production, sales and services, and achieve high effectiveness in business operation, management and related services. Therefore, we believe that SMEs' digital transformation should focus on two aspects. First, SMEs need to enhance their capacities for innovation. For SMEs, strengthening sci-tech innovation means using digital technologies to improve their efficiency in research and development, production as well as sales and services, thereby building core competitiveness. In the meantime, SMEs need to make their products smarter and more digital, further improving their sustainable development capacity in aspects concerning smart delivery measures and brand building. Second, SMEs need to strengthen the use of data throughout the industrial chain. As SMEs often face insufficient data supply, we need to further leverage data's role to connect and drive innovation. We need to enhance data integration throughout the industrial chain. We also need to create a data circulation and utilization system where leading enterprises play a dominant role and upstream and downstream enterprises help in transforming this system in a coordinated manner, in a bid to provide targeted solutions tailored to specific enterprises. .

Moving forward, the NDA will collaborate with relevant state organs to continue creating a conducive environment for SMEs' digital transformation. To strengthen policy support, we will enhance inter-departmental coordination and build synergy. We will launch and implement related digital transformation projects, promote digital transformation in key sectors and improve public service platforms for various regions, industrial parks and industrial clusters. We will provide more solution and services, supporting leading enterprise and third-party digital service providers to build comprehensive platforms that facilitate digital transformation, in a bid to promote coordination across industrial chains. To further leverage the enabling role of data, we are studying and formulating policies concerning the development and utilization of business data resources. We will improve the efficient supply of public data resources. In accordance with market principles, we will also promote the joint development and utilization of business data among enterprise of all sizes, so as to continuously meet the data resource needs of SMEs and other enterprises. We will further implement the three-year action plan to promote the use of data as a factor of production and enhance SMEs' capacity in data utilization, aiming to reduce costs while increasing efficiency. To create an environment for digital transformation, we support relevant parties in developing digital products, services and solutions that are small-scale, easy to use, portable and precisely suited to the need of SMEs. In this way, we aim to create an ecosystem for digital transformation that integrates supply and demand, highlights collaboration throughout the industrial chain and features value-driven approaches. We also encourage and support internet platforms and leading enterprises to leverage their strengths by opening their digital resources and transformation measures to SMEs, thus helping SMEs to achieve digital transformation. Thank you.

Xing Huina:

This concludes today's press conference. Thank you to Mr. Liu Liehong, the other three spokespersons and our friends from the media. Goodbye, everyone. 

Translated and edited by Xu Xiaoxuan, Wang Ziteng, Yang Xi, Liu Caiyi, Yan Bin, Lin Liyao, Qin Qi, Xiang Bin, Liao Jiaxin, Zhu Bochen, Wang Qian, Ma Yujia, Wang Wei, Wang Yanfang, Yuan Fang, Liu Sitong, Liu Qiang, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Sun Shuxian, vice minister of natural resources and administrator of the State Oceanic Administration

Ms. Guo Fang, vice minister of ecology and environment

Chairperson:

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

Date:

July 11, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO).

Today, we are releasing the white paper "Marine Eco-Environmental Protection in China," and holding this press conference to introduce and interpret its main content.

The white paper, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and Xi Jinping Thought on Ecological Civilization, systematically introduces China's policy concepts for creating a marine eco-environment for harmonious coexistence between humans and the ocean. It comprehensively outlines the key measures China has taken in coordinating marine eco-environmental protection, systematic governance of the marine eco-environment, and advancing green and low-carbon maritime development. It also showcases China's extensive international cooperation efforts in marine eco-environmental protection and its contributions to building a maritime community of shared future. The paper calls on all countries to jointly protect the marine eco-environment and promote sustainable development for a cleaner and more beautiful world. 

The white paper consists of a preface, main text and conclusion, totaling around 27,000 Chinese characters. The main text includes seven sections: I. Improving Marine Eco-Environment for Harmonious Coexistence Between Humans and the Ocean; II. Coordinating Marine Eco-Environmental Protection; III. Systematic Governance of the Marine Eco-Environment; IV. Science-Based Conservation and Restoration of Marine Ecosystems; V. Strengthening Supervision and Administration of the Marine Eco-Environment; VI. Advancing China's Green and Low-Carbon Maritime Development; VII. Carrying Out All-Round International Cooperation on Marine Eco-Environmental Protection.

The white paper is published in eight languages — Chinese, English, French, Russian, German, Spanish, Arabic and Japanese — by the People's Publishing House and the Foreign Languages Press, and is available at Xinhua Bookstore outlets across the country.

To help you better understand the content of the white paper, we have invited Mr. Sun Shuxian, vice minister of natural resources and administrator of the State Oceanic Administration, and Ms. Guo Fang, vice minister of ecology and environment, to introduce relevant information and answer your questions.

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

Sun Shuxian:

Ladies and gentlemen, good morning. It is a pleasure to witness the release of the white paper "Marine Eco-Environmental Protection in China" with you today. First, I would like to thank you for your interest in and support for marine eco-environmental protection.

The white paper presents a full picture of China's ideas, actions and achievements in marine eco-environmental protection. We hope it will help people from all walks of life and the international community obtain a more comprehensive and in-depth understanding of China's marine eco-environmental protection efforts, further strengthening communication and cooperation.

The ocean is a treasure trove of natural resources and a strategic area for high-quality development. Today, global marine security, development and governance face a series of prominent challenges. China has always actively promoted the global marine governance process and is a firm advocate for and active participant in marine eco-environmental protection.

General Secretary Xi Jinping emphasized the need to "care for the ocean as dearly as we treasure our lives." Since the 18th National Congress of the Communist Party of China (CPC), under the guidance of Xi Jinping Thought on Ecological Civilization, China has launched a series of campaigns of fundamental, pioneering and long-term significance, achieving historic transformations and significant progress. These efforts have resulted in a series of landmark accomplishments and have charted a unique path of harmonious coexistence between humans and the ocean, reflecting Chinese characteristics.

First, the concept of marine eco-environmental protection has innovatively evolved while maintaining fundamental principles. We have prioritized eco-environmental conservation, deepened our understanding of marine natural laws and included eco-environmental progress in the overall plan for marine development. We adhere to a coordinated approach that includes both land and sea, river and sea linkage, and systematic governance, transitioning from single-element to holistic strategies, and from "end-of-pipe treatment" to "whole-chain management." We emphasize technology-driven, multi-partner governance, public participation and win-win cooperation, enhancing comprehensive governance capabilities from multiple perspectives. This has produced exemplary cases of building a Beautiful China and harmonious coexistence between humans and the ocean, such as the "Xiamen Approach," vividly demonstrating the implementation of China's eco-civilization philosophy.

Second, China has made progress in protecting its marine eco-environment through continuous exploration. China was the first country to propose and enforce red lines for ecological conservation. It has made efforts to improve the marine protected areas system and implement major marine eco-environmental conservation and restoration projects. By doing this, the country has significantly improved the marine ecosystem in terms of diversity, stability and sustainability. Moreover, China has ensured that its management of sea areas has transitioned from a two-dimensional to a three-dimensional approach. Rapid progress has been made in technologies for developing and harnessing marine renewable power, and China's ability to use marine resources economically and intensively has been improved. Furthermore, China has improved its legal and institutional frameworks. We have used land, sea, air and space in monitoring and supervision to strengthen the country's marine ecosystem early warning and monitoring capabilities, improving our capacity to prevent and mitigate marine disasters. These efforts have built a strong security shield for the marine ecology.

Third, China has reached a consensus with countries worldwide on marine eco-environmental protection. Since 2012, China has submitted over 800 proposals to international organizations, actively engaging in formulating international rules and regulations for environmental protection and resource conservation. The country has signed Belt and Road cooperation agreements with more than 50 countries and international organizations, enhancing synergy with major cooperation initiatives such as the United Nations' 2030 Agenda for Sustainable Development and the U.N.'s Ocean Decade. Moreover, Blue Partnership cooperation has become more dynamic. China has provided extensive foreign assistance and training, contributing insights and strengths to tackle global challenges to the marine eco-environment.

My friends, the blue planet where we live is the shared home of all humanity, and mankind rise and fall together in a community with a shared future. China stands ready to work hand in hand with the international community to lay the foundation for a marine eco-civilization and pursue the green development of our oceans.

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

Xing Huina:

Thank you, Mr. Sun. Now, let's invite Ms. Guo to give us an introduction.

Guo Fang:

Ladies and gentlemen, friends from the media, good morning! It is my great pleasure to be here with you today. On behalf of the Ministry of Ecology and Environment, I would like to express my sincere gratitude to all our friends from various walks of life. Your long-standing concern and support for China's efforts in protecting the marine eco-environment have been truly appreciated.

As Mr. Sun mentioned, General Secretary Xi Jinping has shown the utmost support and placed high hopes on the building of a marine eco-civilization and the protection of the marine eco-environment. Since the 18th CPC National Congress, under the guidance of Xi Jinping Thought on Ecological Civilization, China has made unprecedented transformations in marine eco-environmental protection. Our main efforts have been focused on the following four areas:

We have adopted a systemic approach and deepened the reform of land-sea coordinated institutions and mechanisms. China is working on a protection and governance framework that ranges from mountain tops to the ocean, and the reform of marine management and governance has been steadily advancing. In the 2018 reform of State Council institutions, the responsibilities of marine environmental protection were incorporated into those of the Ministry of Ecology and Environment. Additionally, supervisory agencies were established to monitor the marine eco-environment in three river basins and sea areas. By taking these steps, we have prioritized both ecology and environment and integrated the management of land and marine resources. As a result, a comprehensive governance system featuring land-sea coordination and river-sea connectivity has taken shape. This system facilitates coordination among different departments and improves cooperation among various regions.

We have put people first and made remarkable achievements in the efforts to build beautiful bays. China is committed to pursuing environmental benefits for the public and has designed and implemented the 14th Five-Year Plan for Marine Ecological and Environmental Protection and the Optimized Action Plan for Building Beautiful Bays. Our focus is on key programs, such as building over 110 beautiful bays and intensifying our endeavors to clean up marine waste at 65 bays, promoting the recycling of marine plastic waste.

Today, I have also brought a small item for all my journalist friends. This beautiful scarf is actually made from three recycled plastic bottles, which were collected during a volunteer beach cleanup activity in Nansha district, Guangzhou city. We are working diligently to transform all 283 bays nationwide into beautiful ones by 2035. Our goal is to materialize the amazing view depicted in the picture: clear seawater, clean beaches, desirable habitats for fish and seabirds, and harmony between humans and the sea.

We have made efforts to address key points and problems, resulting in the continuous improvement of the eco-environment in coastal waters. China has prioritized key sea areas located at strategic convergence points along its coast, such as the Bohai Sea, the Yangtze River Estuary-Hangzhou Bay, and the Pearl River Estuary. By adopting targeted governance policies, China has made remarkable achievements in improving eco-environment quality in these regions. Statistics show that in 2023, 85% of the coastal waters had good to excellent water quality, an increase of 13.7 percentage points from 2018. This improvement has been consistent for six consecutive years. Moreover, since 2021, 24 typical marine ecosystems have shed their "unhealthy" status.

We are committed to governing the sea according to the law, continuously strengthening the supervision and enforcement of marine ecological protection. China protects its waters with the strictest systems and the most stringent legal measures. The Marine Environment Protection Law has been amended three times and revised once. We have also formulated and revised seven administrative regulations and over 10 departmental rules, creating a solid legal framework. We always adhere to strict supervision and law enforcement, investigating more than 53,000 sewage outlets to the sea and rectifying over 16,000. We continuously conduct special supervision and law enforcement actions like the "Green Shield" and "Blue Sea" initiatives. We have implemented three rounds of central government environmental protection inspections, identifying and addressing more than 200 prominent marine-related issues.

After persistent efforts, everyone can feel that the seawater has become clearer in recent years, the beaches are cleaner, seabird populations have increased, and the coastal wetlands are more beautiful. The continuous improvement of the marine ecological environment is a vivid portrayal and powerful proof of the historic, pivotal and all-encompassing changes in China's ecological and environmental protection. Next, we will continue to promote the comprehensive management of key marine areas, fully advance the development of beautiful bays, and consistently meet the public's desire to enjoy and connect with the sea.

As the poem says, "True friendship knows no boundaries; even those thousands of miles apart can be close neighbors." With this in mind, I sincerely invite friends from home and abroad to visit China's various coastal regions. Come and experience firsthand the excellent environment, beautiful ecology, and effective governance of China's bays. We are also eager to exchange ideas with other nations, learn from each other, and cooperate pragmatically to jointly promote the development of a maritime community with a shared future and to keep our blue planet perpetually pristine.

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

Xing Huina:

Thank you, Mr. Guo, for the introduction. We will now proceed to the Q&A session. Members of the media are welcome to ask questions. Please identify your news organization before asking your questions.

CNR:

We know that China hosts a variety of typical marine ecosystems, including coral reefs, mangroves and seagrass beds. Could you please elaborate on the measures implemented in recent years to protect and restore typical marine ecosystems? Going forward, how do you intend to consolidate the existing protection achievements? Thank you.

Sun Shuxian:

Thank you for your question. Marine ecosystems provide various essential ecological services that support our survival, economic productivity and quality of life. In recent years, the Ministry of Natural Resources has adhered to the principles of respecting, complying with, and protecting nature. We have vigorously protected and restored typical marine ecosystems, striving to enhance their diversity, stability and sustainability. Our main efforts have been focused on the following areas:

Regarding current status surveys, in 2020, we completed nationwide surveys of typical ecosystems such as coral reefs, seagrass beds, and coastal salt marshes. We have essentially grasped the distribution and ecological conditions of various typical ecosystems and identified prominent ecological issues and the main threats and risks they face.

In terms of early warning and monitoring, we conduct regular ecological early warning and monitoring for key areas and issue early warning products. These efforts provide a fundamental basis for marine ecological protection and restoration.

In terms of ecological assessment, we regularly evaluate the conditions of typical ecosystems. Some of you might have noticed that in June this year, we issued the first "China Marine Ecological Early Warning and Monitoring Bulletin." The monitoring results showed that the overall conditions of ecosystems such as coral reefs, seagrass beds, coastal salt marshes, and mangroves are predominantly good to excellent.

Regarding ecosystem protection, we've included most typical marine ecosystems, including mangroves, coral reefs and seagrass beds, within our ecological protection red lines, where strict protection measures are implemented. Additionally, human activities that do not meet management requirements and severely impact the structure and function of these ecosystems are gradually being phased out.

In terms of ecosystem restoration, we have actively mobilized both central and local financial resources to protect and restore degraded and damaged typical marine ecosystems. Our goal is to restore these ecosystems and their service functions.

Going forward, we will take multiple measures to continuously strengthen the protection and restoration of typical ecosystems. First, we will stay attuned to dynamic changes, continuously enhance our surveys and assessments of the status quo of typical marine ecosystems, and gradually improve our systems for continuous observation, monitoring, and early warning. Second, we will strengthen our protection management strategies, strictly enforcing the ecological protection red line system, integrating land and spatial planning with regular check-ups and assessments every five years, promptly identifying and incorporating other typical ecosystem distribution areas, and enhancing oversight and control of marine and island development projects that may impact typical ecosystems. Third, we will implement scientifically based protection and restoration measures. We'll improve our approach through category-based policies, enhance our scientific and technological support capabilities, and strengthen our complete process, including tracking, monitoring, effect evaluation, and post-restoration management, to ensure the effectiveness of our restoration efforts. Additionally, we will actively explore and promote the realization of the value of ecological products, pilot the valuation of ecological products, encourage social capital to participate in the protection and restoration of typical marine ecosystems, and foster a social atmosphere of joint development and shared benefits. Thank you!

China News Service:

The white paper introduces the legal framework of China's marine eco-environmental protection. I would like to ask, what work has China done in this regard? How can the marine eco-environment be protected through the rule of law? Thank you.

Guo Fang:

Thank you for your questions. A sound ecological environment must rely on the rule of law. We often say that we control pollution in a targeted, law-based and science-driven approach, with the legal framework for pollution control being the core concept in China's eco-environmental protection. This means we should rigorously carry out supervision following the laws and regulations, and protect the ocean with the strictest system and the strictest rule of law. I would like to answer your questions from two aspects: legislation and enforcement.

First, in terms of legislation, China has formulated a comprehensive law on marine eco-environmental protection, namely, the Marine Environmental Protection Law. Since 2012, it has been amended three times and revised once. In particular, the Marine Environmental Protection Law was revised last year to 124 articles in nine chapters from 97 articles in 10 chapters, with 27 articles added, while only eight articles were not revised. There have been many institutional innovations and practical measures. For example, land and sea planning is regarded as a principle of marine eco-environmental protection, with detailed provisions focusing on marine garbage management, supervision of sea-entering sewage discharge outlets, and the prevention and control of polluted river water entering the sea, while the scope, intensity, methods and procedures of punishments were expanded. 

The Wetlands Protection Law, the Fisheries Law, and the Coast Guard Law respectively make specific provisions on the protection of coastal wetlands, marine fishery resources as well as marine environmental law enforcement. 

Besides the national level, local governments in coastal areas are also actively making laws. For example, Hainan province introduced regulations for the protection of coral reefs and giant clams, and Xiamen issued regulations on the protection of the Chinese white dolphin population and their habitat. The effects have been obvious: the Chinese white dolphin population has increased from 60 in the early 1990s to nearly 80 now. It is said that citizens in Xiamen's downtown can see the Chinese white dolphin.

Concerning law enforcement, the Ministry of Ecology and Environment, the China Coast Guard and other departments have established a mechanism for supervision and law enforcement to jointly carry out special law enforcement actions such as "Green Shield" and "Emerald Sea" based on routine patrols and law enforcement. From 2020 to 2022, China conducted more than 19,000 inspections on marine engineering projects, drilling platforms, islands and ocean dumping sites, handled over 360 cases of illegal activities involving land reclamation from the sea, ocean dumping and island eco-environmental damage. Severe punishments have been imposed for violations and crimes in key areas of marine eco-environmental protection.

Next, the Ministry of Ecology and Environment will continue to cooperate with legislative agencies in compiling the Ecological Environment Code, improve the legal framework for the marine eco-environment, and protect the marine eco-environment under the rule of law. Thank you.

Nanfang Daily, Nanfang Plus:

In recent years, China has continued to promote the construction of beautiful bays. What progress has been made so far? In this process, how have local governments adapted measures according to local conditions to better realize "bay-specific policies" and "respecting the distinctive beauty of bays"? What are your plans for the future? Thank you.

Guo Fang:

Thank you for your questions. I have just introduced the achievements of building beautiful bays. The building of beautiful bays is a priority in marine eco-environmental protection. Our work is progressing smoothly and has produced clear effects. We have mainly focused on three areas: first, is the top-level design of the "three five-year plans;" second, is the comprehensive governance of "bay-specific policies;" and third, is the leading role of innovation at the grassroots level.

First, the top-level design of the "three five-year plans." As we all know, the goal of environmental protection cannot be achieved overnight and requires long-term efforts. Starting with the 14th Five-Year Plan for Marine Ecological and Environmental Protection, we have adhered to the "three five-year plans" and strived to accomplish the building of 283 beautiful bays across China by 2035. At present, 11 coastal provinces (or autonomous regions or municipalities directly under the central government) have formulated provincial construction plans and implementation plans for 130 bays, drawing up layout plans and implementation systems for comprehensively promoting the construction of beautiful bays from the central to local governments.

Second, we have adopted comprehensive governance with bay-specific policies. Every bay construction project must address common issues such as nearshore pollution control, eco-environmental conservation and restoration, and environmental rectification of shores and beaches. These are topics the media also pays close attention to. However, we're mindful of potential homogenization during construction. To prevent this, we have adopted tailored policies for each bay, fostering unique strengths and characteristics based on natural endowments and local conditions. By the end of 2023, we had completed half of the 1,682 specific tasks set for the 14th Five-Year Plan (2021-2025) period. Nearly two-thirds are now completed, and the rest are in progress. In 2023, 167 out of 283 bays nationwide had over 85% of their seawater areas rated as excellent. Flagship species like Bryde's whales, Chinese white dolphins, and black-faced spoonbills frequently appear in multiple bays. These bay-specific policies have led to diverse beauty. Let me share some impressive examples. Zhangbei Bay in Rizhao, Shandong province, has built a 28-kilometer-long coastal greenway. Meanwhile, Beihai in Guangxi Zhuang autonomous region has restored 3.3 kilometers of beach, creating a beautiful silver landscape stretching for over three miles. You can try to find time to visit these places with your children during the summer vocation.

Third, we strongly encourage examples of innovation at the primary level, particularly in institutional, mechanism, and technological aspects. By selecting outstanding cases of beautiful bay construction, we have formed a series of excellent practices to be replicated in other parts of China. For example, Shenzhen's Dapeng Bay is home to over a dozen active green marine non-profit organizations that conduct coastline protection initiatives spanning tens of kilometers, inspiring the public to become participants and supervisors in beautiful bay construction. Tangshan Bay in Hebei province utilizes shellfish-algae reef ecosystem reconstruction technology, restoring 4,000 mu of seabed into a vibrant underwater landscape with oyster reefs, seagrass beds, and abundant marine life.

The Recommendations on Advancing the Beautiful China Initiative on All Fronts, issued by the Party Central Committee and the State Council at the end of last year, puts forward clear requirements and specific arrangements for building beautiful bays. Moving forward, we will earnestly implement these requirements. We will leverage continuously improved top-level design and increasingly effective primary-level practices to reinforce each other. This approach will drive the high-quality building of beautiful bays more effectively. Thank you!

Shenzhen TV Zhi News:

We understand that coastal areas, due to industrial agglomeration and high resource demands, often face significant pressures related to eco-environmental protection. This has, to some extent, constrained the economic and social development of these areas. Therefore, what efforts have been made in recent years to balance resource development with ecological protection, and to promote the development of the marine economy in coastal regions? Thank you.

Sun Shuxian:

Thank you for your question. The development of the marine economy in coastal areas has been a topic of great concern in recent years. The MNR has adhered to the principle of balancing development and protection, actively supporting high-quality marine development through high-level protection. Our main efforts have been focused on the following aspects:

In terms of optimizing the spatial development and protection pattern of the ocean, we have implemented the marine-related requirements of the Outline of the National Territorial Space Plan (2021-2035) issued by the Party Central Committee and the State Council. We have formulated spatial plans for coastal zones and nearshore waters, drawn red lines for marine eco-conservation, defined marine ecological space and areas for development and utilization, and comprehensively optimized distribution arrangements for key marine utilization activities.

To strengthen the protection of marine resources, we have issued the Notice on Further Improving the Protection of Land and Sea Resources. This notice simplifies and optimizes the requirements and procedures for demonstrating sea area use in relevant projects. We have also implemented strict controls for new land reclamation and island utilization projects.

To promote efficient and intensive use of marine resources, we have steadily advanced a multi-rights system for sea areas, shifting from a two-dimensional to a three-dimensional management approach. We've begun exploring legal ways to grant transfer, mortgage, and lease rights for uninhabited islands, gradually expanding the role of market-based allocation in the marine sector.

We've strengthened green and low-carbon technological innovation to promote the marine industry's transformation. We have intensified technological research and development in areas such as seawater desalination, ocean energy development, marine biological resource utilization, and marine engineering equipment. These efforts are injecting new momentum into and shaping new advantages for the high-quality development of the marine industry.

Currently, China has achieved remarkable progress in marine industry development and marine ecological protection. Just now, Ms. Guo provided a comprehensive overview of the continuous optimization of the eco-environment. In terms of marine economic development, in 2023, China's marine economy GDP reached 9.9097 trillion yuan, increasing by 6% year on year, with a growth rate 0.8 percentage point higher than that of the national GDP. The marine economy is experiencing a strong recovery, improving in terms of both quantity and quality, and has become a new engine for national economic growth. Thank you.

Global Times:

My main interest is the issue of inland sea ecological management, as this is considered a global challenge. The Bohai Sea is China's only inland sea. As such, could you provide an overview of the ecological governance efforts in the Bohai Sea in recent years? What exemplary measures have we taken that could serve as models for other countries and regions worldwide? Thank you.

Guo Fang:

Thank you for your questions, and for your interest in the governance of the Bohai Sea. As you mentioned, inland seas extend deep into the continent and are only connected to the open ocean by straits, often resulting in small sea areas, slow water exchange rates, poor marine environmental capacity and significant human activity. These characteristics make inland seas a challenge for marine environmental governance. There are many international examples, such as the Chesapeake Bay in the United States, the Baltic Sea in Europe and the Seto Inland Sea in Japan, all of which have through years of management practices. The Bohai Sea is China's only semi-enclosed inland sea and has experienced ecological difficulties such as nearshore water quality deterioration, ecological degradation, resource depletion and frequent disasters. China attaches great importance to the governance of the Bohai Sea and has been continuously working on it. Particularly since 2018, we have carried out two rounds of key comprehensive governance campaigns, achieving significant results. In 2023, the proportion of nearshore areas in the Bohai Sea with good to excellent water quality reached 83.5%, an increase of 18.1 percentage points compared to 2018, exceeding our average growth rate.

In the practice of governing the Bohai Sea, China has explored and developed a comprehensive inland sea ecological governance model that integrates land and sea management, with three key elements.

First is coordinated land-sea management. The pollution in the Bohai Sea is mainly due to an excess of nitrogen and phosphorus nutrients. While the problem seems to be in the sea, its roots are on land. In recent years, improvements to the Bohai Sea's water quality have been achieved by controlling the two "pathways" of seagoing rivers and sea-entering discharge outlets. We have implemented a comprehensive approach to control total nitrogen in seagoing rivers and conducted meticulous work on inspecting, measuring, tracing and managing sea-entering sewage discharge outlets. We have established a mechanism to control land-sea pollution encompassing "river basin-estuary-nearshore sea areas." I can report to you today that the water quality of the Bohai Sea continues to improve.

The second key is pollution reduction and capacity expansion. Pollution reduction is relatively straightforward; it involves reducing the discharge of pollutants into the sea through measures such as cutting total nitrogen emissions from seagoing rivers and rectifying sea-entering sewage discharge outlets. Capacity expansion, as Mr. Sun mentioned, involves enhancing the marine environment's capacity through the protection and restoration of coastal wetlands and ecological shorelines. For example, the restoration of coastal salt marshes and seagrass beds in the Yellow River and Luan River estuaries has effectively enhanced the region's capacity to accommodate and degrade pollutants. By simultaneously addressing pollution control and ecological restoration, we have effectively promoted the improvement of the Bohai Sea's marine ecological environment.

The third key is regional coordination. Managing the Bohai Sea involves multiple departments and regions. In the governance process, China's institutional advantages have been fully demonstrated, with all resources and forces being mobilized effectively. We have established a coordination and collaboration mechanism with clear responsibilities and divisions of labor, promoting joint efforts. We have improved the collaborative governance and consultation notification mechanisms for nearshore waters and strengthened the joint prevention and control mechanisms for the upstream and downstream of seagoing rivers, ensuring the implementation of various governance tasks. The results of the Bohai Sea governance are the outcome of collaborative efforts.

These three key elements of the comprehensive governance of the Bohai Sea have become a new model for global inland sea ecological governance, reflecting China's approach and wisdom. We look forward to strengthening technical cooperation and exchanges in this field with relevant countries. Moving forward, we will continue to maintain our efforts in the governance of the Bohai Sea to promote continuing improvements to its ecological environment. Thank you.

CCTV:

According to the white paper, China was the first country in the world to propose and enforce red lines for ecological conservation. Can you share how the red lines for marine eco-environmental conservation were drawn? What role do they play? What are the considerations for safeguarding these red lines? Thank you.

Sun Shuxian:

Thank you for your questions. Red lines for marine eco-environmental conservation have attracted wide concerns from the public. Since 2019, in combination with the formulation of a territorial spatial plan, the Ministry of Natural Resources has worked with the Ministry of Ecology and Environment, the National Forestry and Grassland Administration and other departments to establish the red lines for eco-environmental conservation. During this process, we have adhered to the principles of achieving full coverage of areas that are eligible, following a fact-based approach and have prioritized the inclusion of areas with critical ecological functions, such as biodiversity conservation and coastal protection, as well as the most ecologically fragile areas, such as coastal erosion under the ecological conservation red lines, on the basis of the marine eco-environmental importance assessment. At the same time, red lines have also covered undeveloped and uninhabited sea islands, habitats of rare and endangered marine species and migratory birds as well as spawning sites of important fishery resources, thus playing a key role in protecting the habitats and migration of marine life and birds.

To date, China has drawn red lines covering a total area of 150,000 sq km, including mangrove forests, coral reefs, seagrass beds and other typical marine ecosystems, forming an important blue eco-environmental shield.

To fortify the regulation of red lines for marine eco-environmental conservation, we have also worked with relevant departments to issue A Notice on Strengthening Management of Red Lines for Eco-Environmental Conservation (Trial), regulating the specific types and management requirements for allowing limited human activities and the specific circumstances and approval procedures for the occupation by major national projects, as well as clarifying the regulatory responsibilities of the departments overseeing red lines for eco-environmental conservation. Based on that, in combination with local conditions and considering both principles and flexibility, provinces and cities have introduced more operational regulation requirements for ecological conservation red lines with more local features.

Next, we will strengthen the coordination with local governments and carry out marine eco-environmental conservation performance evaluations on a regular basis. We will intensify the publicity to enhance awareness from all sectors of society to strictly safeguard red lines for marine eco-environmental conservation and gather social forces to jointly safeguard red lines for marine eco-environmental conservation. Thank you!

CRNTT:

The marine issue concerns the whole world. What progress has China made in engaging in global marine governance? In addition, what are the considerations with regard to advancing international cooperation and exchanges in marine eco-environmental conservation as well as providing Chinese solutions for global marine governance? Thank you.

Sun Shuxian:

Indeed, the current marine-related issues concern the whole world, drawing attention from not only coastal states but also inland countries. China has been attaching great importance to international exchanges and cooperation on marine eco-environmental protection. I would like to briefly talk about the gains of cooperation in the following three aspects.

First, we have continued to deepen cooperation in key areas with Belt and Road Initiative partner countries as well as actively expanding global partnerships. We have issued a series of cooperation documents such as The Vision for Maritime Cooperation under the Belt and Road Initiative, The Principles for Blue Partnership, and The Belt and Road Blue Cooperation Initiative. China has signed maritime cooperation agreements with over 50 countries and international organizations, laying a solid foundation for practical cooperation.

Second, we have continued to advance the development of cooperation platforms and launched more joint projects. We have established joint marine research centers, laboratories and other cooperation platforms with nine countries, such as Indonesia and Thailand. Marine cooperation mechanisms have been built with EU, African, Southeast Asian and island countries. We have provided technical support and training programs on capacity building for relevant coastal states and island countries in the areas of marine scientific research, marine disaster prevention and mitigation, marine eco-environmental protection and plan formulation concerning exploitation and utilization of marine resources. We have also launched a series of concrete and practical joint projects.

Third, we have taken an active part in the global governance of the marine environment. We have participated and played a constructive role in the whole process of the negotiations for the Biodiversity Beyond National Jurisdiction (BBNJ) agreement. We have responded positively to the U.N. Ocean Decade initiative and shared our practices and experiences in marine research, environmental protection, and disaster prevention and mitigation. We have held a series of international exchange activities including the World Coastal Forum and the World Ocean Week in Xiamen, providing experiences and examples for protecting global marine ecology and environment. 

Going forward, we will take multiple measures to further enhance international cooperation and exchanges for marine eco-environmental protection. First, we will continue to expand our "blue" circle of friends. We will advance cooperation in areas including coordinated maritime management, marine research, marine observation and disaster prevention and mitigation, eco-environmental protection, and capacity building. Second, we will improve the development of cooperation platforms and mechanisms. We will implement the Ocean Decade Action Plan of China, create well-known brands for international cooperation such as the World Coastal Forum, and create more public products and services for the international community. We will actively participate in the global governance of the marine environment, carry out in-depth cooperation with the U.N. and its specialized agencies as well as regional organizations, conduct multilateral and bilateral consultation concerning important agendas in marine ecology, contribute Chinese wisdom and solutions, and display the image of a major responsible country with concrete actions. Thank you.

Beijing Youth Daily:

Just now, Mr. Guo introduced some of the changes to the Marine Environment Protection Law following its latest revisions. We also noticed that in the latest version, the law has included a series of new regulations on the protection of marine biodiversity. What is the current situation regarding marine biodiversity? And what work will be done going forward to restore biodiversity? Thank you. 

Guo Fang:

Thank you for your questions. The world is paying more and more attention to the topic of biodiversity you mentioned. As a Chinese saying goes, "All beings flourish when they live in harmony and receive nourishment from Nature." Biodiversity gives the Earth its vigor and vitality and is the root and lifeline for all life on Earth. The ocean is the largest ecosystem on Earth and a treasure trove rich in biodiversity. By protecting marine biodiversity, we are extending the oldest and most beautiful story of life. 

China is a major maritime country. We have recorded over 28,000 species of marine life, accounting for 11% of the marine life known in the world. It is one of the countries with the richest marine biodiversity in the world. China attaches great importance to the protection of marine biodiversity and has been advancing protection and restoration as well as regulations and governance. The newly revised Marine Environment Protection Law has also given priority to protecting marine biodiversity and required improvements to the systems of investigation, monitoring, assessment and protection, as well as the protection and restoration of important marine ecological corridors.

According to the 2023 communique on China's marine ecology and environment, the condition of 24 typical marine ecosystems under monitoring has generally improved. Since the beginning of 2021, all "unhealthy" areas have been eliminated, with marine biodiversity steadily improving. With the help of the media, there are more and more reports and pictures concerning harmonious coexistence between marine life and humanity. For example, the Chinese white dolphins in the Pearl River Estuary and Sanniang Bay and the Bryde's whales in Shenzhen Bay and Weizhou Island, have become local internet celebrities and city representatives.

In December 2022, the 15th Meeting of the Conference of the Parties to the U.N. Convention on Biological Diversity (COP15) established the Kunming-Montreal Global Biodiversity Framework, which was a landmark event. Based on that framework and with the approval of the State Council, the Ministry of Ecology and Environment has worked with relevant departments to formulate and issue China's Biodiversity Conservation Strategy and Action Plan (2023-2030), which takes the ocean as an important area and a key objective and will focus on strengthening the rehabilitation and restoration of the marine ecosystem including estuaries, bays, mangroves, coral reefs and seagrass beds. Just now, Mr. Sun has also made a detailed introduction in this regard. 

Next, the Ministry of Ecology and Environment and other relevant departments will implement the requirements of the Kunming-Montreal Global Biodiversity Framework, carry out China's Biodiversity Conservation Strategy and Action Plan, guide and urge coastal areas, in combination with the building of beautiful bays, to systematically launch refined investigations, focus on carrying out ecological protection, restoration and rehabilitation, and continue to strengthen investigation and monitoring as well as supervision and management, taking multiple measures to protect marine biodiversity. Thank you.

Xing Huina:

Please continue with your questions. There are two reporters with their hands raised.

China Daily:

We have noticed that the Ministry of Natural Resources has guided coastal areas to launch a series of major projects for marine eco-environmental protection and restoration. Could you share some more details on that? And what measures have been taken to preserve and restore the eco-environment? Thank you.

Sun Shuxian:

Thank you for your interest. Since the launch of the 13th Five-Year Plan, we have applied both natural rehabilitation and artificial restoration methods, and organized and implemented a series of major projects, with 175 projects having been implemented that have now delivered substantial results. I would like to answer your questions in combination with several specific examples.

One is the problems of "hard seawalls" destroying the ecological functions of coastlines. We have undertaken ecological renovation of seawalls, leveraging ecosystems' natural disaster mitigation capabilities to enhance the resilience of coastal zones. Another example is the problem of degradation of coastal wetlands caused by artificial structures and invasion of alien species. We have restored the ecological functions of these wetlands by demolishing artificial structures and promptly replanting mangroves, salt marsh vegetation and seagrass after removing invasive species. Our ecological restoration measures also include rehabilitating mangrove forests, coral reefs and seagrass beds, as well as protecting and rescuing rare and endangered species. We've implemented engineering measures such as renovating seawall openings, dredging, and managing bays. Generally, we have taken category-based, region-specific measures in accordance with local conditions and timing.

At present, marine eco-environment protection and restoration projects have yielded remarkable social, ecological, and economic benefits. These efforts have effectively reduced regional ecological degradation, significantly improved marine ecosystem quality, and strengthened ecosystem connectivity, stability, and integrity. I'd like to share two examples with you. The first is Xiamen, Fujian. Since 1988, starting with the comprehensive management of Yundang Lake, Xiamen has gradually implemented comprehensive management projects in the western sea area, Wuyuan Bay, Xinglin Bay, the eastern coastal area, and Maluan Bay. Through coordinated land and marine development and river-sea linkage, Xiamen has achieved systematic governance. This presents a vivid picture of the "Xiamen Approach," which features harmonious coexistence between humans and nature. Recently, many media outlets have visited Xiamen, and I believe they were all impressed by what they saw.

Additionally, Beihai in the Guangxi Zhuang autonomous region has implemented the "Blue Bay" improvement project. The initiative has basically curbed the deterioration of sea area environmental quality and coastal wetland degradation. It has also established connectivity along the shorelines of Yintan Beach and steadily increased the area of mangrove forests, yielding significant ecological, economic, and social benefits.  

According to statistics, since the launch of the 13th Five-Year Plan, we have improved and restored 1,680 kilometers of coastlines and over 50,000 hectares of coastal wetlands nationwide. These efforts have improved the structure and function of typical marine ecosystems, effectively restoring habitats for rare and endangered species such as Chinese white dolphins and horseshoe crabs (Tachypleus tridentatus). Additionally, we have mitigated disruptions to the East Asian-Australasian Flyway, a route for migratory birds. Furthermore, our initiatives have also enhanced the sense of fulfillment and happiness of people living near and interacting with the sea, and built a safety barrier for the high-quality development of coastal regions. Thank you.

Hong Kong Bauhinia Magazine:

The whitepaper mentions that the Blue Circle project, a new model of marine plastic waste management initiated by Zhejiang province, won the United Nations' 2023 Champion of the Earth award. How has the promotion and application of this model for marine plastic waste reduction progressed so far? What insights and solutions has China contributed to the protection and governance of the global marine eco-environment? Thank you.

Guo Fang:

Thank you for your recognition of the Blue Circle project. The control and treatment of marine plastic pollution is indeed a global challenge and a public concern. Taizhou, Zhejiang province, has explored and developed a new management model for marine plastic waste. By leveraging big data and blockchain technology, this model has made it possible to simultaneously achieve marine plastic pollution control, high-value recycling and utilization of resources, and prosperity for all fishermen while realizing ecological, social, and economic value. As a result, it stood out among 2,500 applications globally and won the United Nations' 2023 Champion of the Earth award, which is no small feat.

At present, the promotion and application of the Blue Circle are advancing at a fast pace. As far as we know, this model has been extended not only throughout Zhejiang province but also to the Yangtze River Delta region and coastal regions in southeast China. Blue Circle demonstration centers have been set up in Fujian, Shandong and Hainan. This model has gained global recognition and has been promoted and applied in Singapore, France, Germany, Korea, Japan, Thailand and Switzerland. The recycling system now includes not only the original, relatively single category of waste plastic bottles but also fishing nets and gear used for marine aquaculture.

With advanced technical solutions, an innovative operation mode, and high-quality marine recycled plastic products, the Blue Circle model has gained favor with many multinational corporations, industry associations, financial institutions and even overseas government agencies, attracting an increasingly diverse range of participants. Building on this success, the Ministry of Ecology and Environment has collaborated with multiple departments to issue the Action Plan for the Cleanup of Marine Litter in Coastal Cities. This plan aims to further advance the recycling and collection of marine litter, providing more materials for projects such as the Blue Circle. We believe that it will play a positive role.

Since the 18th CPC National Congress, coastal areas have pioneered innovative practices in marine eco-environment protection and governance. There are outstanding examples, including the Blue Circle you mentioned, the Xiamen Approach, which Mr. Sun presented in detail, and the governance of the Bohai Sea, which I just introduced. We have also achieved landmark accomplishments with recognition, influence, and reputation through the evaluation of excellent cases in the Beautiful Bay initiative. At present, the evaluation of the third batch of cases is underway. Through these efforts, we aim to provide new ideas and paradigms for global maritime governance.

These experiences and explorations belong both to China and to the rest of the world. China is willing to work with all countries to open a new chapter in building a maritime community of shared future, jointly preserve the Blue Homeland on which we rely for our subsistence, and leave a blue sky and clean ocean for future generations. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thank you to our two speakers and friends from the media. Goodbye.

Translated and edited by Wang Yiming, Wang Qian, Gong Yingchun, Ma Yujia, Zhang Rui, Zhou Jing, Zhang Tingting, Wang Ziteng, Zhang Junmian, Liu Caiyi, Xu Kailin, Li Huiru, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Li Xiaopeng, minister of transport

Mr. Fei Dongbin, administrator of the National Railway Administration

Mr. Song Zhiyong, administrator of the Civil Aviation Administration of China

Mr. Zhao Chongjiu, director general of the State Post Bureau 

Chairperson:

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

Date:

July 10, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Li Xiaopeng, minister of transport, to brief you on relevant developments and answer your questions. Also present today are Mr. Zhao Chongjiu, director general of the State Post Bureau (SPB); Mr. Song Zhiyong, administrator of the Civil Aviation Administration of China (CAAC); and Mr. Fei Dongbin, administrator of the National Railway Administration.

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

Li Xiaopeng:

Ladies and gentlemen, friends from the media, good morning. I'm very pleased to meet you all here. I would like to express my gratitude for your long-term interest in, support, and help for, as well as supervision of China's transportation undertakings.

This year marks the 75th anniversary of the founding of the People's Republic of China. Over the past 75 years, China's transport sector has continued to grow. As General Secretary Xi Jinping pointed out, since the founding of New China, generation after generation of the Chinese people have worked in the spirit of opening roads through mountains and building bridges over rivers, and turned China into a country with vast transport infrastructure. Today, we are redoubling our efforts to build a country with great transport strength. Transport has become a frontier in China's modernization drive. This year is also the fifth year since the CPC Central Committee and the State Council issued the outline on building China's strength in transportation. In the past five years, we have carefully studied and implemented General Secretary Xi Jinping's major expositions on building China's strength in the transport sector, and continued to promote the high-quality development of transportation.

Over the past five years, our transportation infrastructure has been continuously improved. The total length of the comprehensive three-dimensional transport network exceeds 6 million kilometers, and the comprehensive east-west and north-south transport networks have become more complete.

Over the past five years, our passenger and freight transportation have continued to develop. Passenger travel has become more comfortable and convenient, and freight transport has become smoother and more efficient, moving toward the beautiful vision of enjoyable travel for people and smooth transportation of goods.

Over the past five years, our technological innovation has been continuously strengthened. Construction technology has leapt forward as a whole. Breakthroughs have been achieved in equipment research and development and the pace of smart transportation has accelerated. New technologies, new business forms and new models such as autonomous driving have flourished, and technological innovations in transportation have effectively promoted industrial upgrading.

Over the past five years, our green and low-carbon development has continued to improve. The transportation structure has been further optimized, and the efficient and intensive use of resources has been significantly improved. The green and low-carbon transformation of transportation has contributed to the construction of a Beautiful China.

Over the past five years, the big department system reform has continued to deepen. The comprehensive transportation governance capacity has been continuously improved, and the legal system, policy system and standards system have been further upgraded.

Over the past five years, our international cooperation has been continuously strengthened. We have continuously deepened bilateral and multilateral cooperation, promoted high-quality Belt and Road Initiative (BRI) cooperation, and continuously improved connectivity. We have signed more than 160 land, sea, air and mail-related agreements with more than 90 countries and regions.

Overall, in the five years since the issuance of the outline on building China's strength in transportation, our comprehensive strength in the transport sector has increased significantly, taking a big step toward the goals of satisfying people's needs, ensuring guarantees and being at the forefront of the world.

Next, we will comprehensively implement the guiding principles of the 20th CPC National Congress, the second plenary session of the 20th CPC Central Committee, and the upcoming third plenary session of the 20th CPC Central Committee, fully and faithfully apply the new development philosophy on all fronts, contribute to the creation of a new development pattern, and pursue progress while ensuring stability. We will strengthen workplace safety, do a good job in flood control, drought relief, and emergency management and rescue, deepen the reform of the comprehensive transportation system, promote cost reduction, quality improvement, and effectiveness of transportation and logistics, promote the large-scale renewal of equipment, expand effective investment, strengthen global transportation cooperation, serve high-quality BRI cooperation, work to accelerate the boosting of China's strength in transportation, strive to be a frontier of China's modernization drive, and provide more solid and powerful transportation service guarantees in building a great modern socialist country and advancing national rejuvenation.

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

Shou Xiaoli:

Thank you, Mr. Li, for your introduction. We will now move to the Q&A session. Please identify the media outlet you represent before asking your question.

Economic Daily:

The fourth meeting of the Central Commission for Financial and Economic Affairs (CCFEA) called for the optimization of major transportation routes and corridors to unclog bottlenecks. In accelerating the boosting of China's strength in transportation, what progress has been made in this regard? What are your considerations going forward? Thank you.

Li Xiaopeng:

Thank you for your interest in the construction of major transportation routes and corridors. At present, the total length of China's comprehensive three-dimensional transport network has exceeded 6 million kilometers, as I mentioned. As part of this, the main framework of "six axes, seven corridors and eight trunk lines " has basically taken shape. The "six axes, seven corridors and eight trunk lines" are the main framework of the comprehensive three-dimensional transport network stated in the guidelines on developing a comprehensive transport network. The "six axes" refer to the main corridors between the four economic development poles of the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area and the Chengdu-Chongqing Economic Circle, which are also the main transportation corridors in China. The "seven corridors" mainly refer to seven transport routes such as the western land-sea transport corridor. The "eight trunk lines" refer to eight routes such as the border passage. The main framework of "six axes, seven corridors and eight trunk lines" covers more than 80% of China's counties and serves about 90% of China's economy and population.

From a sectoral perspective, by the end of last year, the country's in-service railway network reached a total length of 159,000 kilometers, with more than 45,000 kilometers of high-speed railways. The nation's highway system extended to 5.4368 million kilometers, including 183,600 kilometers of expressways. Inland navigable waterways stretched for 128,200 kilometers, with 15,400 kilometers classified as Class III and above. The number of quay berths for production use amounted to 22,023, of which 2,878 were berths of 10,000-ton-class or above. In terms of civil aviation, there were 259 transport airports, of which 38 had an annual passenger throughput of 10 million or more, and 63 had a cargo and mail throughput of 10,000 tons or more.

In general, we have made remarkable progress in infrastructure development, especially in the construction of integrated, multidimensional transportation networks, particularly the main framework and trunk roads.

Though having achieved significant progress, there are still areas that require improvement. For example, there are weaknesses in the development of normal-speed railways. The capacity of inter-regional expressways as transport channels needs to be improved. Deficiencies exist in the construction of inland waterways and the connectivity of water transport systems. Moreover, comprehensive hubs need to gain greater influences. 

In the next step, we will further accelerate the construction of the main framework consisting of six axes, seven corridors, and eight channels and build demonstration corridors. We will also further complement and strengthen the national comprehensive freight hub chain by advancing a series of major construction projects, including the railway freight network project, the national highway connectivity improvement project, and the inland waterway transport system connectivity project. In summary, we will expedite the elimination of bottlenecks to make new contributions to the smooth flow of the national economy. Thank you!

Jinan Times APP:

As civil aviation passengers, we are very concerned about flight punctuality. Could you please share what specific measures the civil aviation industry has taken to improve operational efficiency and ensure flight punctuality? Thank you.

Song Zhiyong:

Thank you for your question. Flight punctuality is a topic of great concern to passengers and a task we attach great importance to. Flight punctuality affects passengers' travel experience and reflects the overall efficiency and smoothness of civil aviation transportation organizations. It is an important indicator of high-quality development in civil aviation. The key to improving flight punctuality lies in enhancing the operational efficiency of civil aviation. In recent years, we have taken multiple measures and comprehensive policies to improve operational efficiency, including the following:

First, we have optimized airspace structures and increased airspace capacity. With the continuous release of dividends from national air traffic management reforms, the supply of airspace resources has continued to improve. By establishing major air corridors and optimizing airspace structures, we have increased flight handling capacity in high-traffic airspace, effectively alleviating the pressure caused by rapid flight growth. For example, in 2022, the Beijing-Guangzhou air corridor was opened. This major north-south air traffic artery, connecting China's Beijing-Tianjin-Hebei region and the Guangdong-Hong Kong-Macao Greater Bay Area, was expanded from a single pair of routes (one for each direction) to a dual pair of routes (two for each direction), increasing airspace capacity by nearly 40%. There are plans to open 10 such air corridors, with seven already completed and operational. The eighth, the Shanghai-Kunming air corridor, will be opened in September this year, providing airspace support for efficient flight operations. This corridor primarily aims to ease the air traffic jam along the east-west route linking Shanghai and Kunming.

Second, we have improved operational standards and enhanced the level of coordinated transportation. Airlines, airports, and the air traffic management authority are the three main entities in civil aviation operations. We have formulated targeted policies and measures on flight organization of airlines, ground support at airports, air traffic flow management, and evaluation methods for airport gate docking rates. To optimize operational standards, we raised specific requirements for reducing the minimum interval between aircraft operations, shortening ground taxing time, reducing runway occupancy time, and increasing the rate of aircraft docking near terminals. This year, we also issued measures on civil aviation collaborative operation management, establishing a three-tier collaborative system for civil aviation operations at national, regional and airport levels that integrates negotiated decision-making, joint implementation, and dynamic management, to continuously improve the efficiency of matching route capacity with flight traffic.

Third, we have promoted the application of new technologies to enhance operational efficiency. Civil aviation is a field where large numbers of new technologies emerge. In recent years, we have optimized and improved our operational methods by embracing new technologies. This has allowed us to continuously enhance safety and operational efficiency. For example, widely used Category II and III instrument landing systems, performance-based navigation, and in-flight head-up display s can enable aircraft to safely take off and land in low visibility conditions, significantly reducing weather-related disruptions. In the next step, during the construction of smart civil aviation, we will further enhance operational efficiency by promoting new technologies and models such as proximity landing and takeoff, the Point Merge System, and trajectory based operations.

Through these efforts, civil aviation has maintained a flight punctuality rate of above 80% for six consecutive years. In the first half of this year, despite a 13.4% year-on-year increase in flight volume, the flight punctuality rate reached 86.37%. We're currently in the thunderstorm season, which is the most stressful and challenging period of the year for ensuring reliable flight operations. Nevertheless, we have made preparations to maintain safe operations while minimizing weather-related disruptions. Our goal is to ensure smooth travel for all passengers. We also hope that everyone can provide more understanding and support for our work in civil aviation. Thank you.

CCTV:

We're aware that the large-scale renewal of transportation equipment is an important task for the transport authorities this year. Could you please tell us what deployments and plans the MOT has in this regard? Thank you.

Li Xiaopeng:

Thank you to the reporter from CCTV for your question. The large-scale renewal of transportation equipment is one of our key priorities this year. The promotion of a new round of consumer goods trade-ins and large-scale equipment upgrades is a significant initiative put forth by the CPC Central Committee and the State Council, with a focus on China's overall high-quality development. The large-scale renewal of transportation equipment plays a crucial role in achieving high-quality development. The effort will help stimulate investment, improve infrastructure and drive industrial upgrading. Additionally, it contributes to energy saving and carbon reduction goals while is also helping to lower logistics costs. Overall, it delivers both immediate and long-term benefits.

For the transportation industry, the scale of equipment is substantial. As of the end of last year, China possessed more than 20,000 railway locomotives, over 12 million operational vehicles, approximately 120,000 water transport vessels, and nearly 700,000 public and electric buses. Among these, a significant portion of the equipment needs updating, representing a considerable scale of renewal.

We are fully implementing the decisions and plans of the CPC Central Committee and the State Council. In collaboration with the National Development and Reform Commission, the Ministry of Finance, and other relevant departments, we have formulated an action plan. Moving forward, we plan to carry out actions in seven areas: first, accelerating the elimination and renewal of old diesel commercial vehicles; second, scrapping and renewing old commercial ships; third, replacing urban buses with electric ones; fourth, eliminating and renewing old locomotives; fifth, replacing old postal and courier equipment; sixth, upgrading and renovating logistics facilities and equipment; seventh, improving standards. These seven areas cover all fields and departments of transportation. We will strengthen leadership, coordinate cooperation, improve policies, and accelerate implementation. Thank you.

Hong Kong Bauhinia Magazine:

Recently, the Guangzhou-Foshan South Ring and the Foshan-Dongguan intercity railways officially opened, connecting with the Dongguan-Huizhou and Foshan-Zhaoqing intercity railways. Additionally, the Shenzhen-Zhongshan cross-sea passage was also put into operation. The "one-hour commuting circle" in the Guangdong-Hong Kong-Macao Greater Bay Area is rapidly taking shape. Could you please tell us what work the National Railway Administration has done to promote the "four-network integration of rail transit" and support development strategies for regions? What specific measures are being taken? Thank you.

Fei Dongbin:

Thank you for the question. The concept of integration of "the four networks" refers to the integration of trunk, intercity, suburban, and urban railways. It primarily focuses on the integration and connectivity of urban subway systems with intercity and suburban railways. As national-level strategies for regions are implemented, the demand for the integration of "the four networks" has increased. The CPC Central Committee and the State Council have made specific deployments in strategic plans such as the Outline for Building China's Strength in Transport and the Outline for National Comprehensive Transport Network. The main challenge in achieving this integration is the lack of unified systems, standards, and management practices between subways and railways. To address these issues, we are coordinating with relevant departments and provinces. We've selected the Guangdong-Hong Kong-Macao Greater Bay Area as a pilot region to vigorously promote this integration effort. Our aim is to create a rail transit integration development model with Chinese characteristics.

Since the beginning of this year, we have supported and guided the opening of the Guangzhou-Foshan South Ring and the Foshan-Dongguan intercity railways, achieving the connection of four intercity railways. These new lines have integrated with the existing Foshan-Zhaoqing and Dongguan-Huizhou intercity railways, enabling operations with a similar function to buses across the network. At the same time, we've established a special work team in collaboration with relevant departments of Guangdong province, related enterprises and public institutions, and industry associations. We have jointly formulated an implementation plan with Guangdong province to advance the integration of "the four networks" in the Guangdong-Hong Kong-Macao Greater Bay Area. We are currently accelerating the implementation of this plan and, on this basis, developing industry standards with Chinese characteristics to guide "four-network integration" initiatives across the country.

Next, building on the pilot project in the Guangdong-Hong Kong-Macao Greater Bay Area, we will coordinate the promotion of "four-network integration" on a larger scale, vigorously advancing regional integrated development to better serve the implementation of major national strategies. We will focus on connecting facilities, ensuring ticketing system interoperability, establishing mutual trust in security checks, sharing information, and coordinating management.

In terms of facility connectivity, we will concentrate on the interconnectivity needs of multiple operating entities and multi-level rail transit. We'll draw up technical standards for the connectivity of infrastructure, locomotives, passenger transport vehicles, traction power supply, and communication signals while also researching to build interconnectivity access rules.

In terms of ticketing system interoperability, we will establish relevant standards for system interoperability and payment compatibility. We'll develop an implementation plan for ticketing system interoperability projects and actively promote a "one-time ticket purchase, one-time payment" service model.

In terms of mutual trust in security checks, we will promote the coordination and mutual recognition of railway and subway security check standards. We'll also improve transfer conditions, upgrade and strengthen security check facilities and equipment, and further streamline security check processes.

Regarding information sharing, we will explore mechanisms and channels for open data sharing. We'll establish standards for data collection and data security management, as well as promote the open sharing of various types of information.

In terms of coordinated management, we aim to develop and refine relevant institutional measures. This includes improving licensing for railway transport infrastructure, vehicles, and driver qualifications. We'll also promote management interoperability between railways and subways in areas such as equipment utilization, operational organization, and personnel management.

Thank you.

China Transport News:

We all know that convenient and efficient postal and express services have become an indispensable part of people's lives. What measures have relevant departments taken to ensure smooth delivery services while solving the "last-kilometer" problem? How will you promote the high-quality development of the postal and express delivery industry in the future? Thank you.

Zhao Chongjiu:

Thank you for your questions. The postal and express delivery industry has become an important sector closely related to China's economic and social development and people's lives. It has developed rapidly in recent years. We know that in 2023, China's express delivery volume exceeded 132 billion parcels, and in the first half of this year, 80 billion parcels have been delivered, a 23% increase compared to the same period last year, continuing to show a trend of rapid growth.

The postal and express industry is becoming increasingly important in economic activities. This industry involves door-to-door logistics services, for which both trunk line transportation and terminal delivery are crucial. As you mentioned, solving the "last-kilometer" problem is a very important part of our work. Over the years, we have made a lot of efforts in this regard and achieved a series of very good results. Here I will briefly introduce the main features of our work.

First, an expanding network has provided more convenient services. The postal and express sector has actively developed a modern delivery service network system of "hubs + channels + networks." At the terminal end, various service methods such as home delivery, smart lockers and courier stations have been developed. This variety in terminal services has enriched the supply of courier services and better met the public's diverse needs. People's demands for courier services are becoming higher and more diverse, and the industry is actively exploring various methods in terminal services to better meet these needs.

Second, industrial integration has provided stronger support for the real economy. The express delivery industry supports modern commercial and trade circulation. The smooth flow of parcels has greatly boosted the circulation of goods and the development of the retail industry, promoting the rapid growth of sectors such as e-commerce livestreaming and cross-border e-commerce. We have also actively supported modern agriculture by implementing the "courier station in every village" project, building over 1,200 county-level public delivery service centers and more than 300,000 village-level integrated delivery logistics service stations. The courier network has become an important channel for transporting agricultural products from villages to cities and for transporting consumer goods from cities to villages. We have also supported advanced manufacturing by integrating courier services into production lines, directly connecting production, supply and sales, and injecting new vitality into the development of the real economy.

Third, stronger growth drivers have laid a more solid foundation for development. We have continued to spur industrial innovation through sci-tech innovations. Advanced technologies such as intelligent sorting and security screening systems have been widely adopted, and the express delivery industry has played an increasingly prominent leading role in the logistics sector. We have actively leveraged the advantages of the system of "larger government departments", fully utilizing multi-modal transport to achieve door-to-door, one-bill and one-ticket services. In addition, experiments in high-speed rail express delivery have proven useful, and air-express delivery capacity has continued to increase. We have also actively explored low-altitude logistics scenarios such as drone delivery. Unmanned vehicles, drones and unmanned warehouses have been widely used. Scientific and technological developments have continuously promoted the restructuring of logistics organization, driving industry progress.

Fourth, we have improved the quality of our work to provide more effective services for the people. We have focused on solving pressing difficulties and problems that concern the people most in the postal and express sector, constantly taking special rectification measures. Express services catering to cold chains have developed rapidly. We have also introduced special measures to end unjustified charges for courier services in rural areas, continuously improved the handling of complaints, and actively carried out the "Nuanfeng Campaign " to care for and support couriers. As a result, the sense of gain and happiness of people using postal services has significantly increased.

In the first half of 2024, the public satisfaction score for courier services reached over 83 points, increasing by 2 points compared to the same period last year, indicating greater public satisfaction.

Next, focusing on promoting high-quality development of the industry, we will continue to empower the industry through digitalization and the application of smart technologies, and foster and develop new quality productive forces in line with local conditions. We will apply digital and smart technologies to every step from collecting, transferring and transporting to delivering parcels, effectively boosting total factor productivity. We will strengthen the construction of the delivery service network, optimize the layout of delivery hubs in line with city cluster development, continuously advance the construction of a rural delivery logistics system, and improve the international delivery service network to enhance internal and external connectivity. We will continue to deepen industry collaboration, promote the integration of service chains with advanced manufacturing, and better serve economic development. We will continuously strengthen business entities, and actively create a sound environment in which enterprises under all forms of ownership can compete and grow on a level playing field. Thank you.

Nanfang Daily, Nanfang Plus:

With the low-altitude economy rapidly growing and low-altitude flights becoming increasingly common, how can the CAAC fulfill its industry management responsibilities and promote the development of this sector? Thank you.

Song Zhiyong:

Thanks for your question. China's low-altitude economy, based on traditional general aviation and the emerging unmanned aerial vehicles (UAVs) industry, has experienced robust growth in recent years. I'd like to share some data with you. Currently, the number of UAV companies holding valid Remotely Piloted Aircraft Systems (RPAS) Air Operator Certificates exceeds 14,000. Additionally, over 225,000 individuals hold UAV operator licenses. In the first half of this year, nearly 608,000 UAVs were newly registered, representing a 48% increase compared to the end of 2023. The cumulative flight time of UAVs reached 9.816 million hours, an increase of 134,000 hours over the same period last year. These figures clearly indicate that China's low-altitude economy is entering a new phase of rapid growth.

To foster the sound development of the low-altitude economy, the CAAC, as the industry's regulatory body, is committed to fulfilling its responsibilities by adopting a comprehensive approach to promote the innovative development of new types of UAVs while accelerating the transformation and upgrading of traditional general aviation. Building upon its efforts in strengthened top-level design and planning guidance, the CAAC has focused on the following five aspects:

First, strengthen airworthiness certification system and capacity building. We have worked on airworthiness certification of traditional piloted aircraft, optimized technical standards in the UAV sector, and explored and innovated the UAV airworthiness certification modes to better adapt to the airworthiness review requirements for the UAV research and development, design and production.

Second, optimize infrastructure construction standards. In response to the new demands for planning, layout and function of general airports in the development of the low-altitude economy, we've improved construction and operation standards for general airports, temporary taking-off and landing points, and vertical taking-off and landing sites. We've also guided local authorities in improving infrastructure planning and construction for UAV usage.

Third, promote the construction of low-altitude service and guarantee systems. We've expedited the implementation of airspace classification and management to fully utilize low-altitude airspace resources. In collaboration with local governments, we've made efforts to enhance the communication, navigation and surveillance capabilities of low-altitude UAVs in space, air and on land. We've also improved the flight service system at national, regional and flight service station levels, gradually providing one-stop service for low-altitude flights.

Fourth, strengthen safety operation supervision. We've further clarified and implemented regulatory responsibilities of all parties, and established safety operation rules and regulatory policies for various flight activities under converged operation scenarios, including transport aviation, general aviation and UAVs.

Fifth, standardize market management. Focusing on market access, supervision during and after implementation, and consumers rights protection for different scenarios and business forms, we've worked to stimulate market vitality, standardize market order and expand market scale, aiming to establish a favorable industrial ecology for the low-altitude economy.

Moving forward, we will continue to actively participate in the formulation of various relevant international standards and policies of the International Civil Aviation Organization (ICAO), promote China's low-altitude economy and share our operational experience in this sector. These efforts aim to build a better global policy environment for the industry's international expansion.

The Poster News APP:

As we have observed through our daily reporting, rural road construction is important for improving people's travel and quality of life. In May this year, General Secretary Xi Jinping made important instructions on further promoting the construction, management, maintenance, and operation of roads in rural areas, and called for the implementation of a new round of rural road upgrading campaigns. What aspects will the MOT focus on next to facilitate people's travel and improve their daily lives? Thank you.

Li Xiaopeng:

Thank you for your interest in rural roads. The construction, management, maintenance and operation of roads in rural areas is initiated and promoted by General Secretary Xi Jinping. It is a moral and political project that is for the people's wellbeing and grounded in the needs of the people. It has made an important contribution to poverty alleviation and the building of a moderately prosperous society in all respects. As of the end of last year, the total length of China's rural roads stood at 4.6 million kilometers. As General Secretary Xi Jinping emphasized, the project has achieved notable achievements in boosting the sense of fulfillment, happiness and security among rural residents, and has brought them wealth, happiness, connectivity and revitalization.

As you just mentioned, on the 10th anniversary of General Secretary Xi Jinping's first important instructions on the project, in May this year, he once again made important instructions on it, fully affirming the achievements of the project and putting forward clear requirements and expectations for promoting its high-quality development on the new journey of the new era. We must study his instructions carefully and implement them thoroughly.

We will continue to work hard and make sustained efforts. China has a vast territory, extensive rural areas, and uneven levels of development. Rural roads represent our most extensive infrastructure network, serving the largest population and providing the most widely accessible public service. Their strong public welfare nature demands our consistent effort on this new journey.

We will improve policies and regulations, promoting the formulation of Regulations on Rural Roads and developing the 15th Five-Year Development Plan for Roads to solidify the general framework of the country's rural roads system.

We will further enhance governance capacity by deepening the reform of the rural roads management and maintenance system, optimize the "road-chief" long-term operating mechanism, and continuously stimulate the impetus and vitality for high-quality development of the construction, management, maintenance and operation of rural roads.

We will also implement a new round of initiatives to improve rural highways. These include enhancing the road network, safety measures, transportation services, governance capabilities, travel amenities, beautiful village development, industrial support, and employment and income generation opportunities.

Moving forward, we will thoroughly study and implement the important instructions made by General Secretary Xi Jinping. In cooperation with all regions and departments, we will continue to promote high-quality construction, management, maintenance, and operation of roads in rural areas. We strive to write a new chapter in building China into a country with great transportation strength, particularly in rural areas. This effort will provide strong support for advancing Chinese modernization.

China Daily:

Recently, the Trans-Caspian International Transportation Route (TITR) was launched, further improving the accessibility and convenience of regional logistics. What measures has the transportation department taken to ensure smooth international logistics channels and improve the international logistics supply chain system? What specific work has been carried out in this regard? Thank you.

Li Xiaopeng:

Thank you for your interest in international logistics. Accelerating the construction of an international logistics supply chain system is crucial to ensure smooth domestic and international circulation, facilitate the export and import of goods, and maintain the security and stability of global industrial and supply chains. In recent years, we have undertaken a series of efforts to strengthen network construction, enhance service capabilities, and boost exchanges and cooperation.

First, we have strengthened overall planning and top-level design. Together with relevant departments, we have formulated a series of policies and measures to promote the building of diversified international logistics channels and encourage collaboration between logistics companies and firms throughout their industrial chains.

Second, we have actively expanded our international logistics network. China has established maritime shipping routes to major ports worldwide, with container shipping routes connecting more than 100 countries and regions. For years, China has ranked first globally in maritime transport connectivity. In terms of air cargo, our international air cargo service has extended to over 60 countries and regions. Hong Kong and Shanghai have emerged as the first and third largest international air cargo hubs, respectively. Additionally, China has signed agreements on international road transport with 22 Belt and Road partner countries. As for rail transportation, China-Europe freight trains have reached over 220 cities in 25 European countries. Overall, China has made significant progress in developing its global logistics network.

Third, we have redoubled our efforts to enhance international freight services. China has developed an international logistics service system with international shipping as the mainstay, supplemented by international air freight, China-Europe freight trains, international postal services, and international road transport. More than 95% of China's foreign trade is seaborne, and international air freight has become the primary mode of transport for high-end goods that are high value-added and time-sensitive. In 2023, China's express delivery sector handled 3.11 billion parcels all around the world, including those from Hong Kong, Macao, and Taiwan, effectively supporting the rapid development of cross-border e-commerce. Last year, China-Europe freight trains operated a total of 17,000 trips, shipping 1.9 million twenty-foot equivalent units. Additionally, China's international road freight volume rose by 105% year on year. We have made significant progress in transport services across shipping, air freight, international postal services, and international road transport.

Regarding the TITR mentioned by the reporter, we organized its opening ceremony on July 3 in cooperation with transport authorities in Kazakhstan. Chinese President Xi Jinping, who was on a state visit to Kazakhstan, and Kazakh President Kassym-Jomart Tokayev attended the ceremony. This marked the first time vehicles from China arrived at a Caspian Sea port using a highway link, signifying the establishment of a comprehensive, multi-dimensional network integrating road, rail, air and pipeline transportation. This development strongly supports the security and stability of the China-Europe logistics supply chain.

Moving forward, we will collaborate with relevant departments to focus on opening-up and cooperation. We aim to promote the construction of diversified international logistics channels and continue to advance international logistics connectivity. Thank you!

National Business Daily:

In recent years, China's postal and courier industry has seen robust expansion, making life more convenient for people but also posing certain security risks. What specific measures has the State Post Bureau taken to ensure the safety of delivery channels? Thank you.

Zhao Chongjiu:

Thank you for your questions. As you mentioned, the rapidly growing express delivery industry has provided significant convenience for people while also introducing certain security risks. We recognize that the delivery network encompasses many service points and extensive transportation routes. It has wide coverage and involves the separation of people and goods. The industry is also quite economical, offering both affordability and speed. Unfortunately, criminals can exploit these characteristics for various illegal activities. Moreover, the process involves multiple elements and stages, including parcels, personnel, vehicles, facilities and data exchange. This complexity makes safety management challenging. Given that delivery services are closely related to people's daily lives, their safety is crucial to both national security and public well-being. The postal administration, along with the entire industry, has consistently adhered to a people-centered development philosophy, balancing development and safety. We are committed to ensuring the safety and smooth operation of delivery channels while maintaining industry stability. To address these challenges, we have primarily focused on the following areas of work:

First, we have actively improved the safety management system for the postal and express delivery industry. In line with the characteristics of the industry, we have established a three-in-one model of real-name registration, parcel inspections at collection and machine-based security checks. Real-name registration means that senders must provide their real names when sending items, inspections at collection refers to conducting simple checks during the collection process, and we have also installed security screening equipment, forming a three-in-one risk prevention and control model. We have issued regulations on items prohibited for delivery and deepened comprehensive delivery safety management. 17 departments have jointly launched special actions to ensure safe delivery, strengthening efforts to fight terrorism, drugs, pornography and illegal publications, as well as crack down on telecommunications and internet fraud, thereby contributing to greater safety in China.

Second, we have conducted regular hazard inspections and rectifications. We have implemented a three-year action plan to fully tackle basic safety issues, focusing on four key areas: non-compliant equipment and facilities, inadequate on-site management, improper employee clothing, and non-compliant operational practices. These special rectifications aim to standardize safety management of mail and parcel delivery services, effectively preventing major safety production accidents. We will strengthen safety supervision and administrative law enforcement, and urge the headquarters of delivery enterprises to fulfill their unified management responsibilities across the network and strengthen manual and tech-based inspection capabilities to improve the basic safety level.  

Third, we have increased the implementation of technology-based safety management projects. We have launched the "Green Shield" project for supervising safety in delivery channels, established a big data management platform, and carried out technology development and application for intelligent security screening and intelligent audio-visual monitoring in the industry. This allows for the dynamic tracking of mailed items, detection of potential hazards, early warnings for incidents, control of risks and traceability of responsibilities. At the same time, we have promoted the application of privacy waybills and strived to build a technological "protective shield" to safeguard personal information security.  

Fourth, we have ensured the stable operation of the industry. We have protected the legitimate rights and interests of couriers, strengthened the training of safety inspectors in the industry, and promptly investigated and resolved conflicts and disputes. We have promoted delivery enterprises to sign labor contracts with their employees and pay social insurance for them, and promoted the implementation of policies related to stabilizing terminal delivery fee calculations and vocational training policies. We have strengthened network stability monitoring, continuously improved the mechanism for smooth operation of the industry, promptly identified and addressed issues such as mail and parcel backlogs and network interruptions, and actively created a safe and stable delivery service environment. Currently, nearly 500 million parcels are processed every day, and the industry's overall security risks are controllable.  

Next, we will thoroughly implement the overall national security concept, vigorously enhance the safety management capabilities of delivery channels, provide high-level safety guarantees for the industry's high-quality development, and make new contributions to safeguarding national security, social stability and the safety of people's lives and property. Thank you.

Shou Xiaoli:

There are two reporters with their hands raised. We'll take two final questions.

Jimu News: 

On May 1, the national railways recorded 20.69 million passenger trips, setting a new single-day record. What achievements has the railway sector made in boosting the country's strength in transport and in serving economic and social development? What are the key tasks going forward? Thank you.

Fei Dongbin:

Thank you for your interest in the railway sector. As a backbone of the comprehensive transportation system, railways serve as important national infrastructure, a major livelihood project, and a main artery of the national economy. In recent years, while strengthening its own development, the railway sector has made notable achievements in promoting the building of a nation with strong transportation and serving economic and social development. The key achievements are as follows:

The scale and quality of the railway network have been continuously improved. By the end of last year, the length of railways in operation in China reached 159,000 kilometers, including 45,000 kilometers of high-speed rail, forming a well-structured, extensive, well-arranged, safe and efficient railway network.

Railway transportation services have been constantly improved. The passenger and freight railway system embraces a more diverse range of goods, and transportation capacity continues to improve. Services such as online ticket and meal booking, high-speed rail transit and multi-modal transport have made travel and logistics more convenient and efficient.

The upgrading and replacement of equipment and technology have accelerated, and the innovative application of independent, intelligent and green technologies has been sped up. High-speed rail technology has set international benchmarks, and the Fuxing high-speed train has won the special prize of the National Science and Technology Progress Award. The CR450 science and technology innovation project has made significant breakthroughs, and the new energy locomotives developed by CRRC have rolled off the assembly line for the first time.

We have achieved remarkable outcomes in enhancing Belt and Road Initiative cooperation. Bilateral and multilateral cooperation and exchanges in the railway sector have been deeply promoted. Projects such as the China-Laos Railway, Jakarta-Bandung High-speed Railway, and Mombasa-Nairobi Standard Gauge Railway have achieved significant benefits. China-Europe freight trains have truly helped form a "golden transport channel" for trade between Asia and Europe.

Next, we will closely follow the decisions and deployments of the CPC Central Committee and the State Council, focus on key tasks, and continue to promote high-quality railway development, contributing to the great cause of building a strong country and achieving national rejuvenation.

We will optimize the layout, strengthen connectivity, build up lines and reinforce links in the railway network. We will enhance the construction of general-speed and heavy-haul railways, accelerate the development of intercity and suburban railways, and promote the integrated development of comprehensive transportation infrastructure.

We will enhance the railway sector's sci-tech innovation system, advancing basic research and cutting-edge technology innovation. Our focus will be on making breakthroughs in core technologies for key areas, striving to achieve self-reliance and strength in science and technology in the railway sector.

We will deepen the restructuring of the transport network, facilitating a shift of bulk commodity transport from road to rail. We'll extend dedicated railway lines to ports, industrial parks, factories and mines. We will vigorously develop intermodal rail-water transportation, high-speed rail freight, and cold-chain logistics, thereby reducing the logistics costs of the whole society.

We will promote the research, development and application of new equipment, technologies and products, forge a modern railway industrial system, and enhance the green and low-carbon transformation through large-scale equipment renewals.

We will deepen bilateral, multilateral and regional cooperation and exchanges in the railway sector. We will promote railway connectivity with neighboring countries, accelerate the construction of the New International Land-Sea Trade Corridor, improve the quality and efficiency of the China-Europe Railway Express, and better serve the high-quality development of the Belt and Road Initiative.

Thank you.

Shou Xiaoli:

This will be the last question.

Yicai:

Reducing overall logistics costs is an important measure to improve economic efficiency. In 2023, the ratio of total logistics costs to GDP decreased compared with the previous year. What measures will the Ministry of Transport take to further reduce logistics costs? Thank you.

Li Xiaopeng:

Thank you for your interest in our efforts to reduce costs, improve quality, and enhance efficiency in the distribution process.

Effectively reducing logistics costs nationwide is a key task in this year's national economic agenda. As key fields, the transportation and logistics industries play an important role in achieving this goal. In recent years, we have made significant efforts to reduce costs, improve quality, and enhance efficiency, achieving positive results.

First, we have been continuously improving the transportation and logistics infrastructure network. As mentioned earlier, we have built the world's largest high-speed rail network, the most extensive expressway network, the biggest port cluster, and the most comprehensive postal and express delivery network, all of which play crucial supporting roles in logistics development.

Second, freight logistics continue to operate efficiently. In 2023, we handled approximately 150 million tons of cargo transportation and delivered 445 million postal and express deliveries daily. The efficiency of cargo transportation and circulation has maintained a high level.

Third, we've seen continuous optimization of our transportation structure. In 2023, the proportion of cargo transported by railways and waterways increased by 1.4 and 3 percentage points, respectively, compared to 2017. This indicates an ongoing improvement and optimization of the transportation structure.

Fourth, transportation and logistics operations have become more efficient and convenient. We have effectively reduced logistics costs by vigorously developing multimodal transport. For example, Ningbo-Zhoushan Port has innovated a "single document" system for multimodal transport, achieving "one-time consignment, one price quotation, one document throughout and one settlement" for sea-rail combined transportation. This has helped to reduce logistics costs by approximately 500 yuan per container on average.

Although we have made various achievements, there is still significant room for improvement compared to developed countries in the logistics industry. For instance, while the cost of individual logistics segments is relatively low, the operational cost of the entire chain remains high. In addition, the efficiency of resource allocation and circulation needs further improvement. Furthermore, the adjustment of our transportation structure and the development of multimodal transport services must be further deepened to achieve broader implementation of the "single document" system and "single container" system nationwide.

Next, to address the aforementioned issues, we will organize and carry out a special action to reduce costs, improve quality, and enhance efficiency in transportation logistics. We will devote significant effort to make structural, systemic, institutional, technical, comprehensive, and operational improvements in this regard. We will accelerate the construction of the main framework of the integrated multidimensional transportation networks, especially the implementation of the inland waterways connectivity project and the railway freight network project. We will advance the strengthening and extension of national comprehensive freight hubs, ensuring smooth transportation and logistics infrastructure networks. Furthermore, we will adjust the transportation structure, leveraging the comparative advantages of various transportation modes, promoting appropriate use of highways, railways, waterways, and airways, and continuously advancing multimodal transport services. We will encourage the construction of dedicated railway lines into ports, industrial parks, and factory areas, improving the combined efficiency of comprehensive transportation. Additionally, we will also improve the standards and management for the "single document" system and "single container" system in multimodal transport services, accelerate the cultivation of multimodal transport operators with full-service capabilities, steadily expand the scale of international shipping fleets, aviation fleets, China-Europe freight trains and international road transport, thereby improving the diversified international logistics network.

We believe that through the concerted efforts of all parties, greater results will be achieved in reducing costs, improving quality and boosting efficiency in the transportation and logistics sector. This will lead to a more complete network, more efficient operations, more optimized management and more considerate services. We will work to pursue high-quality development and make greater contributions to constructing a modern industrial system and creating a new pattern of development. Thank you.

Shou Xiaoli:

Thank you, Mr. Li. Thank you to all the speakers and the journalists who participated today. Today's press conference is hereby concluded. Goodbye, everyone.

Translated and edited by Yan Bin, Yuan Fang, Wang Ziteng, Liu Sitong, Liu Caiyi, Wang Yanfang, Li Xiao, Ma Yujia, Lin Liyao, Li Huiru, Cui Can, Yan Xiaoqing, Zhang Junmian, Huang Shan, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Jin Zhuanglong, minister of industry and information technology

Mr. Xin Guobin, vice minister of industry and information technology

Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology

Chairperson:

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

Date:

July 5, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Jin Zhuanglong, minister of industry and information technology, to brief you on relevant developments and answer your questions. Also present today are Mr. Xin Guobin, vice minister of industry and information technology; and Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT).

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

Jin Zhuanglong:

Ladies and gentlemen, good morning. First, I would like to thank everyone for your concern and support for the MIIT.

The 20th National Congress of the Communist Party of China (CPC) emphasized that high-quality development is the primary task in building a modern socialist country in all respects. It clearly stated that we will basically achieve new industrialization by 2035, and move faster to boost China's strength in manufacturing. General Secretary Xi Jinping has highlighted that the high-quality development of manufacturing is crucial to the high-quality development of the economy, emphasizing the importance of "two guarantees" to maintain grain production capacity and strengthen the manufacturing sector and urging accelerated efforts to develop a modern industrial system with advanced manufacturing as its backbone. Last September, the CPC Central Committee held a national meeting on promoting new industrialization, at which General Secretary Xi Jinping delivered important instructions. He pointed out that on the new journey in the new era, achieving new industrialization is a key task for building a great modern socialist country in all respects and advancing national rejuvenation on all fronts through Chinese modernization, emphasizing the need for high-quality development throughout the entire process of new industrialization. His important discourse on new industrialization has clarified the strategic positioning, overall goals, direction, strategic tasks, key areas and methodological principles for advancing new industrialization in the new era, providing us with a clear direction, fundamental guidelines and an action plan.

The MIIT has thoroughly implemented General Secretary Xi Jinping's important instructions and the deployments made during the national meeting on promoting new industrialization. Together with various parties, we have made new progress and achieved new results in new industrialization. Here, I will briefly introduce the overall situation regarding industry.

We have formed unique advantages that can be summarized in three words: comprehensive, diverse and large. "Comprehensive" means our system is complete, with 41 major industrial categories, 207 medium industrial categories and 666 industrial subcategories, covering all industrial categories in the United Nations' industry classification system. "Diverse" refers to a wide variety of products in all kinds of manufacturing industries, with over 220 products among the top global producers out of 500 major industrial products. "Large" signifies our scale, with the total industrial added value reaching 39.9 trillion yuan in 2023, accounting for 31.7% of GDP, and the added value of manufacturing accounting for 26.2% of GDP, about 30% of the global share.

The pace of high-end, intelligent and green development is accelerating. In 2023, high-tech manufacturing accounted for 15.7% of the added value of industrial enterprises above designated size, and equipment manufacturing accounted for 33.6%. The digital transformation of manufacturing is continuously advancing, with the penetration rate of digital research and development (R&D) and design tools in key industrial enterprises reaching 80.1%, and the numerical control rate of key processes reaching 62.9%. AI is deeply empowering new industrialization, with 421 national intelligent manufacturing demonstration factories being cultivated. Green manufacturing is advancing rapidly. During the first two years of the 14th Five-Year Plan (2021-2025) period, the energy consumption per unit of added value for industrial enterprises above designated size cumulatively decreased by 6.8%. From 2021 to 2023, water consumption per 10,000 yuan of industrial added value decreased by 20.3%. In 2023, the comprehensive utilization of major industrial solid waste reached approximately 2.2 billion metric tons, with a utilization rate of 54%.

The capacity for industrial scientific and technological innovation continues to improve. We have established 30 national manufacturing innovation centers, covering areas such as power batteries, humanoid robots and high-performance medical devices. We have also established 23 national independent innovation demonstration zones and 178 national high-tech industrial development zones. Notably, significant innovative achievements have been made in key areas. Six C919 large passenger aircrafts, which you are all familiar with, have already been delivered to China Eastern Airlines, with routes having been opened from Shanghai to Beijing, Xi'an, Chengdu and Guangzhou. A total of 139 ARJ21 regional aircrafts have been delivered, three of which have been delivered overseas. China's first domestically produced large cruise ship Adora Magic City has entered commercial operation. The Chang'e-6 spacecraft collected and returned samples from the moon's far side, with the China National Space Administration hosting a ceremony on June 28 to hand over a total of 1,935.3 grams of lunar samples. China's home-grown super-large-diameter shield tunneling machine "Jinghua" has been put into use, and the intelligent six-row cotton picker has entered mass production.

The strength of enterprises continues to grow. There are over 501,000 industrial enterprises above designated size nationwide and 463,000 high-tech enterprises. Key enterprises in the industrial chain are growing rapidly. Specialized and sophisticated enterprises that produce new and unique products are emerging, with over 140,000 small- and medium-sized enterprises of this type being cultivated, including 12,000 "little giant" enterprises with high growth potential, advanced technology and strong market competitive edge, and 1,557 single-product specialists in the manufacturing industry.

In recent years, China's information and communication industry has developed rapidly, achieving remarkable results in high-quality development. We have built a total of 3.837 million 5G base stations, accounting for over 60% of the global share, realizing "gigabit connectivity in all cities, 5G connectivity in all counties and broadband connectivity in all villages." Our total computing power ranks second globally. The industrial internet has initially built five major systems: network, identification, platform, data and security. Five years since the issuance of commercial licenses, 5G applications have been integrated into various industries, achieving large-scale promotion in fields such as industry, power, mining, health care and education.

Despite significant industrial progress, China is at a crucial juncture, transitioning from a large industrial player to a strong one through various trials and difficulties. We face challenges, particularly in core technologies of key fields and basic industrial capacities. Many small- and medium-sized enterprises (SMEs) continue to face considerable production and operational difficulties. Therefore, we will continue to deepen reforms, expand opening-up, and ensure both high-quality development and greater security. We will vigorously promote new industrialization, and strengthen the integration between sci-tech innovation and industrial innovation. Additionally, we will accelerate the development of new quality productive forces and build a modernized industrial system driven by sci-tech innovation and underpinned by advanced manufacturing. By making tangible efforts and taking solid steps to perform and excel, we aim to achieve new milestones in high-quality development, thus making greater contributions toward achieving the Second Centenary Goal.

That concludes my introduction. My colleagues and I are now ready to address your questions. Thank you.

Shou Xiaoli:

Now, the floor is open to questions. When asking your question, please begin by stating the media outlet you represent.

Yicai:

Industry is the ballast of the national economy. This year, China’s industrial production has maintained a rapid growth rate. However, there was a decline in May. How do you view the current performance of the industrial sector? What measures will be taken to stabilize industrial growth going forward? Thank you.

Jin Zhuanglong:

Thank you for your question. The development of the industrial sector is receiving wide attention. As I mentioned earlier, last year, China's total value added of industry accounted for 31.7% of GDP, serving as a "ballast" in maintaining stable macroeconomic performance. This year, China's industrial sector got off to a good start, sustaining momentum of rebound and improvement. Notably, from January to May this year, the value added of industrial enterprises above the designated size increased by 6.2% year on year, 1.6 percentage points higher than in 2023. In May, the value added of equipment manufacturing enterprises above the designated size and high-tech manufacturing enterprises above the designated size grew by 7.5% and 10% year on year, respectively.

However, we must recognize that China's industrial sector still faces difficulties and challenges in sustaining its recovery momentum. This is due to the current complex and severe external environment, as well as insufficient effective domestic demand. Moving forward, we will focus on integrating the requirements of high-quality development into the entire process of new industrialization. We will take solid steps to further stabilize growth, ensure security, and facilitate upgrading to consolidate and enhance the recovery momentum of the industrial sector. Our efforts will be concentrated in the following key areas:

First, we will continue to focus on the development of the 10 key industries: steel, non-ferrous metals, petrochemicals, chemicals, building materials, machinery, automobiles, power equipment, light industry, and electronics. These sectors are large in scale, possess strong driving forces, and are highly interconnected, collectively accounting for about 70% of the value added of industrial enterprises above the designated size. Last year, we formulated work plans to stabilize growth in these 10 industries. This year, we will continue implementing these plans and fostering new growth drivers.

Second, we will encourage prominent industrial provinces to take the lead and support them in this endeavor. The combined industrial value added of the 10 major industrial provinces, including Jiangsu and Guangdong, accounts for over 60% of the national total, making them crucial for stabilizing the industrial sector. In the first five months of this year, the growth rates of these 10 provinces all exceeded the national average. Additionally, we are paying particular attention to the 50 prominent industrial cities, more than 10 of which have achieved hard-earned double-digit growth. We will continue to support prominent industrial provinces and cities in consolidating their strengths and taking the lead. We will also support the development and expansion of distinctive and competitive industries in various regions. Beyond major industrial hubs, each province and city boasts its own unique and competitive industrial strengths, and we will provide tailored support to these locales. At the same time, we are mainly focused on nurturing a number of key industrial counties. We will continue supporting the northeastern, central, and western provinces in facilitating industrial relocation and development, enhancing their capacity to absorb relocated industries, and securing a number of major projects.

Third, we will further expand effective investment in manufacturing. We will earnestly implement the measures for industrial equipment upgrades, facilitating advanced equipment renewal, digital transformation, green equipment promotion, and intrinsic safety enhancement. We are also carrying out actions to promote the high-quality development of key manufacturing industrial chains and accelerate the advancement of major national science and technology programs and key national R&D programs. We aim to achieve more substantive and signature outcomes. We will continue to leverage the roles of the national manufacturing industry transformation and upgrading fund, the national integrated circuit industry investment fund, and the national SME development fund. Through these efforts, we aim to guide and attract private capital to key areas and address weak links in developing a modernized industrial system. This approach will help us stay ahead of the curve in future sci-tech and industrial development.

We will also put greater effort into refining the development environment for manufacturing enterprises. To boost the vitality of business entities, we will implement multiple cost-reduction measures for enterprises. Additionally, we'll launch special, effective initiatives to resolve the issue of overdue payments owed to companies. To unlock personal consumption potential, we will launch a nationwide campaign to increase product variety, raise quality, and build product brands. Additionally, we will stimulate spending on high-quality products such as new energy vehicles, green building materials, and smart home appliances in rural areas. To drive industrial upgrading, we will adopt a multi-faceted approach: upgrading traditional industries while consolidating and enhancing competitive industries, nurturing and expanding emerging industries, and planning for future industries with a forward-looking vision.

That's all for my answer. Thank you.

Zhonghongwang.com:

The central authorities have initiated a large-scale equipment upgrading initiative. How will the MIIT seize the opportunity for this new round of industrial equipment upgrading? How will you apply new technologies and equipment to accelerate the transformation and upgrading of traditional industries? Thank you.

Jin Zhuanglong:

Mr. Xin will answer this question.

Xin Guobin:

People generally place a lot of importance on the development of strategic emerging industries and disruptive technologies, so thank you for your interest in the transformation and upgrading of traditional industries. Traditional industries usually refer to those that have been developed for a long time, have a large industrial scale, broad market demand and strong employment absorption capacity, and are primarily labor- and capital-intensive. These industries play a fundamental role in the national economy, and mainly include petrochemicals, chemicals, steel, non-ferrous metals, building materials, machinery, light industry and textiles. The main indicators of these industries, such as added value, revenue, profit and employment numbers, account for about 80% of the entire manufacturing sector. The products they produce are indispensable in our daily lives. Therefore, traditional industries are the foundation of the modern industrial system and the fundamentals of our manufacturing development. We must promote the transformation and upgrading of these traditional industries and absolutely not treat them as "low-end industries" to simply be phased out.

Since last year, the MIIT, together with relevant departments such as the National Development and Reform Commission and the Ministry of Finance, successively issued the Guidance on Accelerating the Transformation and Upgrading of Traditional Manufacturing Industries and the Implementation Plan for Promoting Equipment Renewal in the Industrial Sector. In the coming period, our key task will be to focus on the implementation of these two documents, targeting high-end, intelligent, green and integrated development directions. We will support pilot cities in new technology transformation, implement major technical transformation and upgrades and large-scale equipment renewal projects in the manufacturing industry, and help these traditional industries "sprout new branches," making them important carriers for new quality productive forces.

In terms of equipment renewal, we will focus on key industries, adhere to market-driven advancement and standardization, implement integrated renewal of advanced equipment and software, and eliminate a batch of inefficient and outdated equipment.

In terms of technological upgrades, we will continuously promote technological innovation in industry, encourage research of key generic technologies and demonstration of industrial applications for traditional industries, strengthen innovation and iteration of new technologies and products, and strive to increase varieties, improve quality and build brands.

In terms of digital empowerment, we will implement the digital transformation of the manufacturing industry, accelerate the deep integration of traditional industries with digital technologies such as artificial intelligence, big data, cloud computing and 5G, promote the application of intelligent equipment such as industrial robots and intelligent logistics, and support the construction of a batch of smart factories, digital supply chains and parks.

In terms of green development, we will solidly advance energy-saving and carbon-reducing transformations in key industries, accelerate the renewal and replacement of key energy-consuming equipment such as electric motors and boilers, expand the application of solid waste treatment and water-saving equipment, build a batch of green factories, and actively develop green and low-carbon industries.

In terms of safety guarantees, we will accelerate comprehensive technical renovations of old installations in the petrochemical industry, implement the principle of "mechanization, automation and robots replacing humans" in the civilian explosives industry, increase the promotion and application of safety technologies and equipment in the manufacturing industry, and enhance the intrinsic safety level of enterprises.

That is all for my answer. Thank you.

The New Times:

In recent years, information and communication technology has developed rapidly. China has built a technologically advanced 5G network, and both enterprises and the public have experienced its tangible convenience. Could you please brief us on the overall development of China's information and communication industry and the key areas of focus going forward? Thank you.

Jin Zhuanglong:

Thank you for your question. As I mentioned earlier, China's information and communication industry has been developing rapidly in recent years, and the commercialization of 5G has achieved good results. I would like to invite Mr. Zhao to answer this question.

Zhao Zhiguo:

Thank you for your question. As everyone knows from experience, in recent years, the development of China's information and communication industry has been rapid, with its strategic, foundational and pioneering roles becoming more prominent. Let me further explain it from the following aspects:

We have built a globally leading information and communication network. Broadband networks have rapidly increased from 10 megabits to 100 megabits, and now to 1 gigabit. All prefecture-level cities nationwide have been built into fiber-optic network cities, achieving "gigabit connectivity in all cities." Gigabit users account for more than 70% globally. We have built 3.837 million 5G base stations, achieving "5G connectivity in all counties," and the 5G user penetration rate has now exceeded 60%. By implementing universal telecom services, all administrative villages nationwide have achieved "broadband connectivity in all villages," and more than 90% of administrative villages have access to 5G. Network resource supply continues to expand, with nearly 20 million national top-level domain name registrations, the highest in the world. China ranks second globally in the total number of IPv4 and IPv6 addresses, and our computing power has reached 230 EFLOPS, capable of performing 230 quintillion floating-point operations per second, ranking among the top in the world.

We have formed a comprehensive and competitive industrial system. China's mobile communication industry has explored and developed a model featuring forward-looking research, standards-driven development, system innovation, solid network foundation and application empowerment. Currently, China accounts for 42% of the world's declared standard-essential patents for 5G, and our global market shares of 5G base stations and cellphones both exceed 50%. The resilience of the industrial chain continues to improve, providing strong support for high-quality economic and social development.

We have cultivated a thriving digital consumption market. Some of you may know that China fully connected to the international internet in 1994, with just a single 64 Kbps line, which was very slow. Since April 20, 1994, after 30 years of development, we now have 1.09 billion internet users, forming the world's largest digital consumption market. In 2023, China's online retail sales reached 15.42 trillion yuan, ranking first in the world for 11 consecutive years. Mobile payments, which everyone uses daily, have grown by 239 times compared to 2012. Revenue of the software industry has exceeded 12 trillion yuan, maintaining double-digit growth for 23 consecutive years.

We are committed to creating an innovative and vibrant ecosystem for industry applications. We believe that the creation and development of such an ecosystem is of paramount importance. 5G industry applications have been integrated into 74 major categories of the national economy. We have successfully established 30,000 5G virtual private networks, 300 5G factories, and over 13,000 "5G plus industrial internet" projects. As we all know, 5G itself is an enabling technology, and the industrial internet has wide-ranging applications. Consequently, the synergy of "5G plus industrial internet" has become increasingly prominent. We have established the OpenAtom Foundation, and high-quality open-source projects such as OpenHarmony and openEuler are beginning to gain recognition on the global stage. The basic telecommunications network continues to operate safely and stably. We are constructing and developing security capabilities for new infrastructure such as the industrial internet and the internet of vehicles. Furthermore, we have essentially constructed a data security management system for the industrial sector.

Moving forward, we will focus on "construction, application, and research" to coordinate, promote, and accelerate the high-quality development of the information and communication sector. "Construction" means consolidating network facilities, steadily advancing the construction of 5G and gigabit optical networks, orderly promoting the upgrading of 5G networks to lightweight 5G and 5G-A (5G-Advanced), and solidly promoting the development of the computing industry. As we all know, computing power is now developing rapidly as a resource. At the same time, we are implementing the "signal upgrade" special initiative to further enhance 5G coverage at cultural tourism sites, healthcare facilities, universities, transportation hubs, subways and other locations. "Application" means deepening integrated applications, introducing follow-up policies to develop "dual gigabit" networks and applications, accelerating the construction of 5G factories, and creating an upgraded version of "5G plus industrial internet." "Research" means strengthening technical R&D and coordinating the evolution of 5G-A and 6G innovation. As we all know, 6G development is also accelerating, with advanced planning for ultra-high-speed optical transmission and next-generation optical networks. There is great potential for the development of optical networks in the future. At the same time, we will systematically promote pilot programs to expand the opening-up of value-added telecom services, such as data centers. We will also strengthen exchanges and cooperation with international open-source organizations to jointly create high-quality open-source projects and implement their results.

That is all for my introduction. Thank you.

People's Posts and Telecommunications News:

Recently, a State Council executive meeting reviewed and adopted an action plan for the digital transformation of the manufacturing sector. All localities are actively taking steps to implement this digital transformation. Could you please brief us on the relevant work and the focus for the next stage?

Jin Zhuanglong:

Thank you for your question. A few days ago, Premier Li Qiang chaired a seminar on the digital transformation of manufacturing in Jiangsu province. The digital shift in manufacturing is now progressing further. I would like to invite Mr. Xin to address this question.

Xin Guobin:

Thank you for your interest in the digital transformation of the manufacturing sector. This transformation is indeed an important direction for the high-quality development of the manufacturing industry. In recent years, with widespread attention and support from all parties, China has made significant progress in digitally transforming its manufacturing sector, creating favorable conditions for promoting high-end, intelligent, and green development. Allow me to share some key sets of data with you. China's installed industrial robot capacity now accounts for more than 50% of the world's total. The industrial internet has achieved full coverage of major industrial categories, and 421 national-level demonstration factories for smart manufacturing have been cultivated, all built according to Chinese standards. As of the end of last year, out of 153 lighthouse factories in the world, 62 were in China, accounting for more than 40% of the total. These lighthouse factories were built by both multinational and local companies. In terms of effectiveness, the product development cycle of demonstration factories in the fields of large aircraft, new energy vehicles, and high-speed electric multiple units (EMUs) has been shortened by about 30%. Production efficiency in these factories has increased by nearly 30%. It's fair to say that many manufacturing companies, once equipped with these "digital wings," have been able to fly faster and more efficiently than their counterparts.

Not long ago, a State Council executive meeting reviewed and adopted an action plan for the digital transformation of the manufacturing sector. This plan defines the objectives and pathways for systematically promoting this transformation. The MIIT will collaborate with all localities and departments to implement the action plan, making simultaneous efforts in "dots, lines and fields." We will strive to achieve full coverage of digital transformation for industrial enterprises above designated size in major industrial provinces, cities and key industrial parks by 2027. Moreover, we will build approximately 200 high-standard digital industrial parks. By 2030, we will strive to basically complete a round of digital transformation for all industrial enterprises above designated size. To be specific:

"Dots" means focusing on key enterprises and promoting digital and intelligent transformation. We will prioritize leading enterprises in industrial chains and specialized, innovative SMEs. Our primary aim is to promote digital transformation in equipment manufacturing enterprises, large-scale durable consumer goods manufacturers, and enterprises undertaking large-scale equipment renewal. We will support enterprises with a solid digital foundation to innovate digital integrated applications. Additionally, we'll guide enterprises with a high level of digitalization to construct smart factories in a tiered manner.

"Lines" means focusing on key industrial chains and promoting coordinated digital transformation. We will formulate implementation plans for the digital transformation of key industries, adopt a "one chain, one strategy" approach to carry out coordinated digital transformation across key industrial chains in the manufacturing sector, and promote typical scenarios and solutions for segmented industries. We will support chain leaders and leading enterprises to open data interfaces, guide supply chain enterprises to access these systems and create a number of digital supply chains.

"Fields" means focusing on key industrial clusters and parks, with the aim of building a number of high-standard digital industrial parks. We will launch the construction of high-standard digital industrial parks, streamline the data, innovation, industrial, and supply chains within these parks, and explore pathways for overall digitalization improvements across these parks. We will continue to implement actions to cultivate and improve national advanced manufacturing clusters, promoting national clusters to take the lead and set examples in digital transformation.

That is all for my introduction. Thank you.

CCTV Business Channel:

We have noticed that in recent years, various technological innovations have developed rapidly. Emerging industries like AI and future industries like humanoid robots are receiving much attention. What measures will the MIIT take to promote these industries? Thank you.

Jin Zhuanglong:

Thank you for your question. As the reporter mentioned, new fields such as AI and humanoid robots are emerging with the ongoing technological revolution and industrial transformation. Countries worldwide are planning and positioning themselves for the future, and China is actively exploring these areas. Indeed, AI is injecting new momentum into economic and social development, profoundly changing how we live and work. The 2024 World Artificial Intelligence Conference and High-level Meeting on Global Governance of AI opened in Shanghai yesterday. Premier Li Qiang attended and delivered a speech, and the Shanghai Declaration on Global AI Governance was issued. From the perspective of industry and information technology, we must seize the opportunities brought by the technological revolution and industrial transformation to deeply integrate sci-tech innovation with industrial innovation. By prioritizing green, intelligent, and integrated development, we encourage enterprises to plan for the future and proactively invest, build new advantages for future development, and ensure the deep integration of sci-tech and industrial innovation.

We should cultivate and expand emerging industries. Strategic emerging industries in China account for about 13% of GDP, offering enormous growth space and potential. For advantageous industries like 5G, new energy vehicles, photovoltaics, and lithium-ion batteries, we need to accelerate the strengthening, extension, and supplementation of industrial chains, further enhance technological advantages, expand market scale, and improve the competitiveness of the entire industrial chain. For emerging industries such as new materials, AI, intelligent connected new energy vehicles, new energy storage, hydrogen energy, biomanufacturing, commercial aerospace, and the low-altitude economy, we need to continue leveraging China's vast domestic market and rich application scenarios. We must systematically promote technological innovation, large-scale development, and industrial ecosystem construction to cultivate a batch of leading enterprises with strong dominance across the entire ecosystem and form more emerging pillar industries that can lead to industrial upgrading.

We also need to plan ahead for future industries. In January, in collaboration with the education and science and technology departments, we jointly issued guidelines on promoting the innovative development of future industries. These guidelines focus on six areas: future manufacturing, future information, future materials, future energy, future space, and future health, laying the groundwork for their development. Next, focusing on these six directions — primarily humanoid robots, brain-computer interfaces, the metaverse, next-generation internet, 6G, quantum technology, atomic-level manufacturing, and deep-sea and space development — we will implement a series of scientific research projects, achieve significant advancements in key core technologies, develop iconic products, achieve landmark accomplishments, and establish enterprise incubators. We will support regions with the necessary conditions to take the lead in developing typical application scenarios, explore the construction of pilot zones for future industries, and cultivate more high-tech enterprises, unicorn enterprises, and innovative SMEs that use special and sophisticated technologies to produce novel and unique products.

Thank you.

Hong Kong Bauhinia Magazine:

Dynamic SMEs are an important guarantee of the resilience of China's economy. What are your plans and specific measures to promote SMEs to develop in the direction of using special and sophisticated technologies to produce novel and unique products? Thank you.

Jin Zhuanglong:

Thank you for your question and your interest in the development of SMEs. General Secretary Xi Jinping has attached great importance to the development of SMEs, stating that "SMEs are important to each household and have been a vital force to advance innovation, facilitate employment and improve people's livelihood." He highlighted that "China's SMEs are smart, full of vitality and good at braving challenges and striving for greatness." The general secretary called for nurturing more specialized and sophisticated SMEs that could produce novel and unique products. By the end of June, we had cultivated over 140,000 such SMEs, including 12,000 "little giant" enterprises. We are committed to consolidating and developing the public sector while encouraging, supporting, and guiding the development of the non-public sector, focusing on four key aspects: service, management, development, and support. Specifically, we will continue to emphasize both service and management, as well as development and support. We need to enhance the reputation of "innovative enterprises that use special and sophisticated technologies to produce novel and unique products" to support the high-quality development of SMEs. Here, I would like to highlight four measures:

The first measure is to increase support for nurturing innovative SMEs that use special and sophisticated technologies to produce novel and unique products. We have issued several measures to support the high-quality development of these SMEs. In collaboration with the Ministry of Finance, we support the "little giant" enterprises to create new momentum, tackle new technologies, develop new products, and strengthen their supporting capabilities within the industrial chain. This is because many of these SMEs are involved in the supply chains of large enterprises, which are typically the anchor companies and leading enterprises, these SMEs can play a crucial supportive role in these chains. We have also collaborated with the State-owned Assets Supervision and Administration Commission of the State Council and other departments to implement joint innovation actions between large, medium, and small enterprises. Many centrally-administered state-owned enterprises (SOEs) are anchor companies, and we encourage SMEs to participate in these joint innovation actions. Additionally, we have empowered the National SME Development Fund to attract social capital for early, small-scale investments in innovative SMEs that use special and sophisticated technologies to produce novel and unique products.

The second measure is to accelerate the digital transformation of SMEs. We have been thoroughly implementing the special campaign for the digital empowerment of SMEs and have launched city pilots for their digital transformation. By 2027, we aim to achieve full digital transformation coverage for "little giant" enterprises and accelerate the digital transformation of innovative SMEs that use special and sophisticated technologies to produce novel and unique products. We will expedite the provision of digital services, support large enterprises in sharing their resources and capabilities with SMEs, and vigorously develop digital products and solutions that are small, fast, lightweight, and precise. These efforts will help reduce transformation costs and enable more SMEs to undertake, successfully navigate, and excel in digital transformation.

Third, we have focused on cultivating characteristic industrial clusters for SMEs. China has developed 200 national SME characteristic industrial clusters and plans to approve and confirm approximately 100 more this year. Meanwhile, we have encouraged various regions to focus on developing industry-oriented county economies based on their characteristic and competitive industries and to establish provincial-level clusters according to local conditions.

Fourth, we have strived to build an efficient and high-quality SME service system. We are committed to providing quality government services to SMEs and creating a sound development environment for enterprises. We have improved the public service systems, leveraged the role of market-oriented service agencies, and coordinated various factors, including rolling out policies to benefit businesses, improving environment to unleash business dynamism, providing quality services to support businesses, building the strength of businesses through innovation, and relying on talent to support enterprise development. We have accelerated the construction of a nationwide service network for SMEs, facilitating connectivity at national, provincial, municipal, and county levels. We've integrated various service resources, including government and market-based services. This aims to provide SMEs a "one-stop" service, helping them lower costs, improve quality, and increase efficiency in tangible ways. Thank you.

Thecover.cn:

The industrial sector is one of the major carbon emitters. What achievements have been made in saving energy and reducing carbon emissions? How can the green transformation in industry be accelerated? Thank you.

Jin Zhuanglong:

Thank you for your questions. Green development is a key direction for industrial growth. Our industrial development focuses on being high-end, intelligent, and green. Mr. Zhao will now address these questions.

Zhao Zhiguo:

Thank you for your interest in the green development of the industrial sector. Industry has consistently been a key area for energy consumption and carbon emissions in China. Green and low-carbon development represents an important trend in the new revolution in science, technology and industry. Promoting green and low-carbon development in the industrial sector is an intrinsic requirement for accelerating new industrialization.

In recent years, we have thoroughly implemented actions to enhance industrial energy efficiency, promoting the reasonable and efficient use of energy by industrial enterprises in accordance with laws and regulations. This has yielded significant results. In the first two years of the 14th Five-Year Plan, the energy consumption per unit of added value of industrial enterprises above the designated size nationwide cumulatively decreased by 6.8%. Energy-intensive industries have been transferred in an orderly manner to regions with clean energy advantages. By the end of 2023, we had cultivated 196 national-level green data centers, with the average utilization rate of electricity generated from renewable energy sources increasing from 15% in 2018 to over 50%. Additionally, the energy consumption per 5G base station site has decreased by more than 20% compared to the early stages of commercial use. Meanwhile, the scale and technological level of new energy vehicles and new energy equipment have rapidly improved, with new orders for green ships accounting for 57% of the global total.

Next, we will firmly uphold and act on the principle that lucid waters and lush mountains are invaluable assets. We will implement plans for peaking carbon dioxide emissions in the industrial sector and accelerate the green transformation of the industry. Our efforts will focus on the following three main areas:

First, in promoting green and low-carbon transformation, we will deeply implement energy-saving and carbon-reducing actions, primarily targeting key industries such as steel, non-ferrous metals, petrochemicals, and building materials, as well as key sectors like data centers and communication base stations. We will synergistically advance digital and green transformations to enhance energy utilization efficiency. We will support enterprises in building a number of digital energy and carbon management centers. Additionally, we will accelerate the establishment of a resource recycling system, promote large-scale and high-value utilization of industrial solid waste and renewable resources, and improve the security and assurance of resource supply.

Second, in building a green manufacturing system, we will introduce an action plan for the green and low-carbon development of the manufacturing industry, implement green manufacturing projects, and cultivate green factories and green industrial parks. We will pioneer the development of green supply chains in sectors such as aviation, shipbuilding, new energy vehicles, and energy electronics. We will actively explore effective methods for managing the carbon footprint of industrial products and promote the development of carbon footprint accounting standards for key products.

Third, in cultivating and expanding green industries, we will strengthen the development and supply of green and low-carbon technology and equipment products. We will accelerate the development of green and low-carbon industries such as hydrogen energy, new ways of storing energy, eco-friendly equipment, green intelligent computing, and smart microgrids, continuously creating new competitive strengths for the industry. Thank you.

Xinhua News Agency:

I am particularly interested in the deepening of reforms in the industrial sector. Could you please share what measures the MIIT has implemented in recent years to comprehensively deepen reforms? What are the plans for the next steps? Thank you.

Xin Guobin:

Reform and opening-up is the driving force for the development of China. Since the 18th National Congress of the CPC, the MIIT has faithfully implemented the major decisions and plans of the CPC Central Committee and the State Council on deepening reforms across the board. We have developed and promoted a series of reform measures, providing strong support for advancing new industrialization. I will now introduce four key aspects of these efforts.

For example, we have accelerated the deep integration of digitalization and industrialization. We have completed a series of top-level design tasks, including the deep integration of next-generation information technology and manufacturing, artificial intelligence-empowered new industrialization, and the digital transformation of manufacturing. We have planned and implemented smart manufacturing projects and the innovative development strategy of industrial internet, promoting the widespread application of next-generation information technology across the entire industry and value chain of manufacturing. The overall effect has been very significant, with new models and formats such as flexible and custom-tailored production, smart factories, and service-oriented manufacturing continuously emerging. The modes of production and the forms of enterprises in the manufacturing industry are undergoing fundamental changes.

For example, we have vigorously promoted industrial technology innovation. By implementing major national science and technology projects and key programs such as rebuilding the industrial foundation and developing important technologies and equipment, we are fully leveraging the advantages of a new system for mobilizing nationwide resources to build a modern industrial system driven by sci-tech innovation. Mr. Jin just mentioned the achievements in the development of large aircraft. Through the development of the C919 large passenger aircraft, we have established a large aircraft industry system centered on the Commercial Aircraft Corporation of China, in collaboration with the Aviation Industry Corporation of China, which spans the entire country and aims at the global market. We steadily advanced the innovative development of mobile communications, explored and formed a development model highlighting advanced research, standardization, system innovation, network development and application utilization, and achieved leapfrog development – in the 2G era, we were merely a follower; in the 3G era, we realized breakthroughs; in the 4G era, we caught up with the world; and now in the 5G era, we are the leader.

For example, we have adhered to promoting reform through opening-up. In the manufacturing sector, China has already announced the complete removal of market access restrictions on foreign investment in manufacturing, welcoming foreign enterprises to invest and deepen their presence in China to enjoy China's development opportunities. In the telecommunications sector, we are steadily advancing opening-up. Recently, we have arranged to further expand the opening-up of value-added telecommunication services such as data centers in four regions, including Beijing. By the end of June this year, the number of foreign-invested enterprises operating in China's telecommunications sector had reached 2,037.

For example, we have resolutely implemented the principle of unswervingly consolidating and developing the public sector while encouraging, supporting and guiding the development of the non-public sector. We encourage various types of enterprises to compete and complement each other with their own advantages. We are continuously advancing the transformation of government functions and innovating regulatory approaches, making strengthening services for enterprises an important responsibility in industry management. We have established and improved regular communication and exchange mechanisms with manufacturing enterprises and innovative, high-tech SMEs, fully listening to their opinions and suggestions to stimulate their motivation and vitality. We have supported the deepening of reforms to state-owned enterprises in the manufacturing sector to enhance their core competitiveness and core functions, creating important equipment for the development of the country. We have revised the "Law on Promotion of Small and Medium-sized Enterprises" and issued regulations on ensuring payments to SMEs, building a mechanism for nurturing high-quality enterprises in tiers, promoting specialized, refined and innovative enterprises, and enabling more high-quality enterprises to stand out.

Moving forward, we will thoroughly study and implement the principles of the upcoming third plenary session of the 20th CPC Central Committee. By taking solid steps and delivering tangible results, we will ensure the effective implementation of reforms, continuously adding new momentum for development and expanding new development spaces. Thank you.

Shou Xiaoli:

Due to the limited time, we will take two final questions.

CMG Voice of China:

We have noted that at the national science and technology conference held recently, the innovative achievements in the fields of new energy vehicles, BeiDou navigation, large aircraft and high-speed railways were particularly eye-catching. The MIIT has frequently mentioned industrial technology innovation. What measures will be taken to continue advancing these efforts? Thank you.

Jin Zhuanglong:

Thank you for your interest in industrial technology innovation. This is of great significance to the development of the manufacturing industry. At the national science and technology conference held recently, General Secretary Xi Jinping fully recognized innovative achievements in fields such as artificial intelligence, new energy vehicles, BeiDou navigation, large aircraft and high-speed railways, pointing out that China had taken new strides in strategic high-tech fields, and emphasizing the promotion of deep integration between innovation in science and technology and industrial innovation so as to help develop new quality productive forces. Focusing on building industrial technology innovation systems, we will improve innovation abilities and solidify the foundation of new-type industrialization. In the field of industry and information technology, we will make efforts in the following four aspects:

We will center on four points in key and core technological breakthroughs. First, we will implement major national science and technology projects, fully leverage advantages of a new system for mobilizing nationwide resources, address shortcomings, strengthen advantages and accelerate breakthroughs in key core technologies. Second, we will effectively implement national key research and development programs, strengthening basic research, frontier technologies and application demonstrations. Third, we will effectively implement the industrial foundation reengineering project to enhance the quality and competitiveness of basic components, basic electronic components, basic software and basic materials. Fourth, we will implement research projects on major technologies and equipment, focusing on making breakthroughs in a number of strategic equipment.

In strengthening the principal role of enterprises in innovation, we will fully leverage the leading role of top-tier technology enterprises and key enterprises in various industrial chains, map out more national innovation platforms at enterprises, and encourage and support capable enterprises to undertake national science and technology innovation projects. We will accelerate the development of high-tech enterprises and innovative SMEs, guide more innovative elements such as talent, capital and technology to gravitate towards enterprises, and encourage and support manufacturing enterprises to closely cooperate with universities and research institutions to jointly conduct scientific research and cultivate scientific and technological professionals.

Regarding platform construction, China has built 30 state-level manufacturing innovation centers, which have played an important role in making breakthroughs in key generic technologies. Next, we will intensify efforts and further optimize the structure, focusing on emerging fields such as biomanufacturing and building more national manufacturing innovation centers. We will concentrate on key areas, including electrical information, fine chemicals, and important equipment, and plan and construct platforms for pilot experiments and application verification. These efforts will provide more robust support for technological iteration, process improvement, and product innovation.

In terms of improving and enhancing sci-tech services, we will issue policies and measures to promote the high-quality development of the sector, expand the market, foster internationalized sci-tech intermediaries, and facilitate the transformation of sci-tech achievements into products and industries. We will implement a project to promote excellence in manufacturing quality, advance the program to improve the standardization of emerging industries and cultivate renowned Made-in-China brands. Thank you.

Shou Xiaoli:

One last question.

Beijing Radio and Television Station:

National high-tech industrial development zones, like Beijing's Zhongguancun and Shanghai's Zhangjiang, have attracted many high-tech enterprises and high-end industries. These zones serve as important examples and guiding forces. I'd like to ask how these high-tech zones are currently performing. Additionally, what are your plans to further promote their high-quality development? Thank you.

Jin Zhuanglong:

Thank you for your questions. People are familiar with these national high-tech zones. They are sci-tech industrial zones approved by the State Council to develop high-tech industries and promote the commercialization of scientific and technological achievements. There are 178 national high-tech industrial development zones across the country, with unique advantages in innovation capability, business strength, and industrial competitiveness. I will provide a set of data to demonstrate their strengths. Currently, national high-tech industrial development zones account for more than 20% of total industrial value added in the country. They have gathered 30% of all high-tech enterprises and 40% of “little giant” enterprises with high growth potential, advanced technology and strong market competitive edge. These zones account for 50% of enterprise R&D expenditures and invention patents. They have also gathered 60% of listed companies on the sci-tech innovation board, 70% of national manufacturing innovation centers, and 80% of national key laboratories. These high-tech zones have developed a number of strategic industries, including high-end equipment, new materials, and new-generation information technology, becoming the backbone for fostering national advanced manufacturing industrial clusters.

The core mission of these high-tech zones is to develop advanced technologies and achieve their industrialization. In light of new circumstances and requirements, their key task is to cultivate and develop new quality productive forces. Therefore, to drive high-quality development, national high-tech zones should focus on developing advanced technologies, achieving industrialization, and accelerating the formation of new quality productive forces. We will build upon our good practices, solidify our efforts, innovate, and accelerate the construction of top-class high-tech industrial zones. Our goal is to create hubs of industrial sci-tech innovation. National high-tech zones will serve as good examples of innovation-driven development, vanguards of new quality productive forces, and pioneers of high-quality development. The focus will be on three aspects:

First, we will enhance industrial sci-tech innovation capabilities. We will map out more innovation platforms in national high-tech zones, including national manufacturing innovation centers, large-scale scientific facilities, and key laboratories. We will develop various platforms for pilot experiments and verification and incubators for highly competitive enterprises to attract and cultivate more top-level talents and innovation teams. We will support the undertaking of major sci-tech projects and key R&D programs. We will foster world-class and leading sci-tech enterprises. We will also implement an initiative to promote collaborative innovation between national high-tech zones, universities, and university sci-tech parks.

Second, we will enhance and expand dominant industries. Guided by sci-tech innovation, we will coordinate the development of traditional, emerging, and future-orientated industries. We will accelerate the construction of digitalized and eco-friendly industrial zones to create world-class advanced manufacturing clusters. We aim to create new development opportunities and build industrial coordinated innovation networks. We will develop and open up important application scenarios, and guide suitable high-tech zones to build pilot areas to develop future-oriented industries.

Third, we will improve the operational framework for national high-tech zones. We shall ensure that the principal responsibility of constructing national high-tech zones is effectively fulfilled, coordinating various resources and elements, including science and technology, education, industries, human resources, and financing. We will also further improve the structure of these zones, with plans to elevate a number of provincial-level high-tech zones to national status. We will explore targeted policies for national independent innovation demonstration zones with distinctive features. We will also improve the comprehensive appraisal system for national high-tech zones and establish all-in-one administrative service platforms. Furthermore, we will upgrade the Torch Program for high-tech industry development. That's all I have to share. Thank you.

Shou Xiaoli:

Thank you, Mr. Jin. Thank you to all speakers and journalists for participating. The press conference is hereby concluded. See you next time.

Translated and edited by Wang Yiming, Yuan Fang, Xu Xiaoxuan, Wang Yanfang, Mi Xingang, Zhou Jing, Yan Bin, Guo Yiming, Li Huiru, Qin Qi, Liu Jining, Liu Sitong, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Bian Zhigang, vice administrator of the China National Space Administration (CNSA)

Mr. Hu Hao, chief designer of the Chang'e-6 mission

Mr. Lin Yiming, vice president of China Aerospace Science and Technology Corporation

Mr. Liu Yunfeng, a person in charge of the Department of International Cooperation at the CNSA

Mr. Li Chunlai, deputy chief designer of the Chang'e-6 mission and researcher of the National Astronomical Observatories of the Chinese Academy of Sciences

Chairperson:

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

Date:

June 27, 2024

Shou Xiaoli:

Good afternoon, everyone. Welcome to this press conference held by the State Council Information Office (SCIO). The Chang'e-6 mission has been a complete success. Today, we have invited Mr. Bian Zhigang, vice administrator of the China National Space Administration (CNSA), to brief you on the mission's developments and answer your questions. Also present today are Mr. Hu Hao, chief designer of the Chang'e-6 mission; Mr. Lin Yiming, vice president of China Aerospace Science and Technology Corporation; Mr. Liu Yunfeng, a person in charge of the Department of International Cooperation at the CNSA; and Mr. Li Chunlai, deputy chief designer of the Chang'e-6 mission and researcher at the National Astronomical Observatories of the Chinese Academy of Sciences.

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

Bian Zhigang:

Thank you, Ms. Shou. Hello, everyone. I would like to express my gratitude for your interest in and support for and coverage of the Chang'e-6 mission.

Here at the venue, we have models of the Chang'e-6 lunar probe and the Queqiao-2 relay satellite on display. At 2:07 p.m. (Beijing Time) on June 25, the returner of the Chang'e-6 lunar probe landed precisely in its designated area in Siziwang Banner, north China's Inner Mongolia autonomous region, bringing back samples collected from the moon's far side for the first time in human history. General Secretary Xi Jinping extended congratulations on the complete success of the Chang'e-6 mission, noting that this mission marks another landmark achievement in China's endeavor to build a strong country in space as well as in science and technology. All those who participated in the mission have been greatly inspired.

The fourth phase of the lunar exploration program is a major space project personally approved by General Secretary Xi Jinping. It fully demonstrates the high level of regard and care for the country's space industry by the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, as well as the unique strengths of the new system for mobilizing resources nationwide. As the third plenary session of the 20th CPC Central Committee approaches, the Chang'e-6 mission's achievement of the world's first lunar far-side sample return has exhilarated the entire nation and captured global attention. Over the past three months, we, together with the people across the country, have closely followed and eagerly anticipated every step of the Chang'e-6 mission. On March 20, the relay satellite Queqiao-2 was launched to provide Earth-moon communications services. On May 3, a Long March-5 rocket was launched on schedule, successfully sending the Chang'e-6 probe into its predetermined orbit. Over 53 days, Chang'e-6 underwent 11 challenging stages. These included Earth-moon transfer , near-moon braking, and the separation of the lander-ascender combination from the orbiter-returner combination. It then achieved a smooth lunar landing, used a drill to collect subsurface samples, and grabbed surface samples with a robotic arm. The mission continued with lifting off from the lunar surface, rendezvous and docking between the ascender and the orbiter-returner combination, and the transfer of samples. This was followed by lunar orbiting, moon-Earth transfer, and finally, re-entry and recovery. Finally, the Chang'e-6 probe successfully returned to Earth.

This was a journey of exploration. The geological structure, material composition, and early cosmic environment of the far side of the moon are shrouded in mystery. The Chang'e-6 probe landed at the edge of an impact crater known as the Apollo Basin, located in the northeast of the South Pole-Aitken (SPA) Basin on the far side of the moon. The crater is the largest, deepest, and oldest known impact crater on the moon. Scientists will study the subsurface samples collected with a drill and the surface samples grabbed with a robotic arm, hoping to unravel significant scientific mysteries about the evolution of the moon and the solar system.

This was a journey of innovation. The Chang'e-6 mission was the most technically advanced lunar exploration endeavor in China's space history, achieving three major technological breakthroughs and one world first. Specifically, it mastered the technologies of lunar retrograde orbit design and control, intelligent sampling as well as takeoff and ascent from the far side of the moon. Additionally, it successfully accomplished the world’s first automatic sampling and return from the far side of the moon, setting another world record for China's space endeavors. Additionally, the new basalt fiber material and intelligent mobile camera technology, were used to unfurl a Chinese national flag on the far side of the moon. These advancements have broad applications for national economic growth and the public's well-being, contributing to a better quality of life.

This is also a journey of cooperation. This mission involved cooperation with the European Space Agency (ESA), France, Italy, and Pakistan in operating four payloads, obtaining valuable firsthand scientific data. Additionally, there was collaboration in the field of telemetry, tracking, and control. Space agencies from several countries, diplomats stationed in China and officials from international organizations were invited to observe the launch. After the success of the mission, heads of those organizations, as well as foreign counterparts and friends, sent us congratulations and spoke of their interest in deepening cooperation with China. I would like to express my gratitude on behalf of the CNSA. We also encourage domestic and foreign scientists to jointly conduct scientific research on lunar samples and data, and strive to obtain more original outcomes.

It is particularly noteworthy that this year marks the 20th anniversary of the CPC Central Committee's decision to implement the lunar exploration program. Over the past 20 years, those involved in the program have strengthened their responsibilities to the mission, kept moving forward until our goals are met, and advanced steadily step by step, leading to successive victories and continually turning the Chinese nation's dream of embracing the moon into reality. The program has brought together thousands of research units and tens of thousands of scientific and technological workers across the country, fostering and refining the spirit of lunar exploration. It has cultivated many outstanding scientific, technical and management talents, formed a successful model for the implementation of major scientific and technological projects, built up China's core capabilities in deep-space exploration, and forged a high-quality and cost-effective path for lunar exploration. Each mission, after achieving its set goals, has conducted extended experiments, laying a more solid foundation for subsequent project tasks. For example, in the field of scientific discovery, scientists from around the world have published over 1,900 research papers based on China's lunar exploration data. Chinese scientists discovered a new mineral using lunar samples collected during the Chang'e-5 mission and named it Changesite-(Y). This is the sixth mineral found on the moon by mankind. Their research also proved that magmatic activities existed on the moon 1.96 billion years ago, extending the "life" of lunar volcanism 1 billion years longer than previously known. The entry of lunar samples into the "Chang'e Era" has greatly enriched humanity's understanding of the moon and the universe.

Ladies and gentlemen, deep space is boundless and infinite, while humanity's quest for knowledge is limitless. The follow-up Chang'e-7 and Chang'e-8, and the planetary exploration missions Tianwen-2 and Tianwen-3, are progressing as planned. The CNSA will further conduct various forms of international exchanges and cooperation in the aerospace sector based on equality, mutual benefits, peaceful utilization and inclusive development. We look forward to joining hands with more international colleagues to make new contributions to expanding human understanding, improving human welfare and promoting the construction of a global community of shared future for mankind in outer space.

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

Shou Xiaoli:

Thank you, Mr. Bian. The floor is now open for questions. Please state the name of the media organization you work for before asking your questions.

China Daily:

Yesterday afternoon, the reentry capsule of the Chang'e-6 lunar probe was opened in Beijing. The public is very interested to know, how many grams of lunar samples were retrieved this time? In addition, what challenges and difficulties did you encounter during this mission to the moon's far side? And what innovations were made during the Chang'e-6 mission?

Bian Zhigang:

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

Hu Hao:

Just like the Chang'e-5 sampling mission, our plan was to bring back 2 kilograms of lunar soil during the Chang'e-6 mission. The container was designed to hold exactly 2 kilograms, and cannot hold any more. We will have to wait until tomorrow to reveal whether we have achieved this goal, but we are confident that there will be surprises.

Originally as a backup for Chang'e-5, the Chang'e-6 program was intended to fulfill a new mission: working on the far side of the moon. Speaking of challenges faced by the program, I believe they can be summarized in the following aspects: First, were in terms of quality and reliability. Space missions are extremely complex. As a backup, it had been a long time since the Chang'e-6 spacecraft was produced. All products have a lifespan as soon as they are produced, and the lifespan of Chang'e-6 determined how the mission would be completed. How do we handle, replenish and replace these products with longer production times during the implementation? All these were significant challenges.

To successfully complete the Chang'e-6 probe mission, we made some replacements based on spare components for the Chang'e-5 spacecraft. We must ensure that all products sent into space are safe and reliable. The same is true for ground-based products. As the aerospace sector is a large system, only by collaborating between space and ground systems can we accomplish the mission. The quality of ground-based equipment affects the reliability of the entire system. Much of the equipment was manufactured during the Chang'e-1 mission, so before the launch of Chang'e-6, we thoroughly reviewed the quality and reliability of the spacecraft and ground equipment to ensure that the entire system was more robust, healthier and more reliable. This was our first challenge. To complete any mission, we must have a healthy body, so we always follow the principles of putting the condition of the probe and rocket first. 

Second, the challenges brought to us by changes in technological conditions. To land and collect samples on the far side of the moon, we needed to make many compatibility changes and also some adjustments to adapt to the conditions on the moon's far side. As we know, direct communication is not possible with the moon's far side, which required us to add a relay satellite. The probe needed to be adapted to this relay satellite's requirements, which then brought us many challenges. We paid great attention to the challenges brought by the changes in technological conditions. Through thorough verification and full preparation, we ensured these changes in conditions could respond to the requirements of the lunar environment and the entire system.

Third, the challenges in terms of planning. We started the Chang'e-6 mission in August 2022, and launched the lunar probe on May 3, 2024, giving us only around a year and a half for preparation. This was a tense part of the whole project. Moreover, we added international payloads and a relay satellite. We needed to develop the relay satellite from scratch, and our research team overcame multiple difficulties during this short period to carry out numerous experiments and extensive verification work. The current relay satellite was designed not only for the Chang'e-6 mission, but also for subsequent missions. Therefore, we needed to carry out continuous cutting-edge research to ensure it met the needs of both the Chang'e-6 mission and subsequent development. Therefore, we carried out a lot of work in terms of research and development in the past more than one year, which was quite challenging.

Fourth, challenges in terms of international payload cooperation. We promised to carry 10 kilograms of international payloads on both the lander and the orbiter and we fulfilled our promise. We did a good job in carrying the payloads, which were all related to research projects. During this period of more than one year, we needed to work with international teams to jointly complete the mission, which was very challenging. We speak different languages, have different working habits, and follow different standards on research and development programs, therefore, we needed to accommodate each other as we carried out a large number of experiments. The facts show that we successfully fulfilled our mission, or in other words, we successfully addressed these challenges. These challenges are invaluable and we will draw on these experiences to perform more complicated tasks in the future. Thank you.

Xinhua News Agency:

The landform is very complex on the moon's far side, where communication is limited. What advanced technologies or strategies were used to ensure the lander's safe landing and effective sampling during the 53-day intricate mission to explore the moon's far side? Also, how did the research team ensure the high reliability of the probe during the research and development process? Thank you.

Bian Zhigang:

This really was a huge challenge. I would like to invite Mr. Lin to answer your questions.

Lin Yiming:

Thank you for your questions. Our mission was to enable the Chang'e-6 lunar probe to collect samples from the moon's far side and bring them back. At the beginning of the research and development, we were already aware of the great difficulties, challenges and risks we would face, such as the complex landform on the moon's far side and high requirements for the timing of the sampling. When the probe lifted off from the moon's far side, the ground could not provide support, hence the probe's take-off mainly depended on our monitoring and control of orbit-related calculations. To back up this work, our team made breakthroughs in the design and control of the lunar retrograde orbit, intelligent sampling on the moon's far side, autonomous lift-off on the moon's far side, and other relevant key technologies, completing reliable and safe sampling work and bringing the samples back.

As for how the mission's success was ensured, Mr. Hu has already mentioned related measures. I would like to add a few more.

First, we designed the probe based on system engineering technologies, focusing on the probe's comprehensive integration and optimized design. When selecting the flight orbit, we used our experience from previous missions and took into account the relationship between the Chang'e-6 and Chang'e-5 probes, as Chang'e-6 was originally designed as a backup for Chang'e-5. One of the considerations was on the configuration and layout. Moreover, we overcame various constraints in terms of resources, such as the area for sampling, illumination on the moon's far side, as well as measurement and control conditions, and designed a retrograde orbital flight plan, providing an optimal and highly efficient design plan for the entire system.

Second, emphasis was placed on risk recognition and control throughout the research and development process to ensure the lunar probe's high quality and reliability. Based on the characteristics of the Chang'e-6 mission, we implemented thorough measures for risk recognition and control in both technology and management, utilizing specialized methods for aerospace products. Carrying forward China's space industry's spirit and fine traditions, we adhered to the "zero-defect" management philosophy and maintained a rigorous and meticulous work style. In line with aerospace quality processes, we addressed every doubt, potential issue, or problem to achieve our goal of doing things right the first time. As you know, there are more than one thousand actions during the flight process, and we executed each one precisely.

Third, significant work was done to improve quality management from good to excellent to accomplish the mission. We established a quality management system for China's aerospace science and technology that is scientifically structured, process-optimized, efficient, collaborative, and continuously improving. By managing the quality of all personnel, elements, processes, and data and carrying out a series of activities that included organizational oversight, independent evaluations, credibility building, and verification, major projects, represented by the lunar exploration program, have been successfully completed with high quality and efficiency.

The complete success of the Chang'e-6 mission is a historic achievement made under the strong leadership, close attention, and dedicated care of the CPC Central Committee with Comrade Xi Jinping at its core. It is also a remarkable fruit achieved by leveraging the strengths of the new system for mobilizing resources nationwide to realize greater self-reliance and strength in science and technology. Looking forward, we will bear in mind our mission of building up China’s strength in aerospace, promote the spirit of China's space industry and lunar exploration program, and continuously implement the country's major space projects, including deep space exploration. This will enable us to contribute more to boosting China’s aerospace strength and advancing national rejuvenation. Thank you.

AFP:

U.S. laws prohibit space cooperation with China. What are your comments and views on this? Will American scientists participate in the research of the new lunar samples collected by Chang'e-6? Thank you.

Bian Zhigang:

Thank you for your questions. China has always maintained an open mind regarding aerospace exchanges and cooperation with the U.S. We have previously established working groups for space cooperation in earth and space sciences with the U.S., and we have also once established a civil space dialogue mechanism with the U.S. government. At the request of the U.S., we also created an exchange mechanism for orbital data of Mars rovers, so that the two countries could jointly assess collision risks and ensure the smooth and sustained progress of both sides' Mars exploration programs. However, U.S. domestic laws, such as the Wolf Amendment, have become obstacles impeding aerospace cooperation between the two countries.

Over six decades of space endeavors, China has made great achievements in this area, and all these accomplishments are the result of the hard work and wisdom of the Chinese people. While the Wolf Amendment has hindered normal Sino-U.S. aerospace exchanges, it cannot impede the rapid progress of China's space development.

As for your question, I believe that U.S. scientists are willing to participate in the study of the new lunar samples. If the U.S. genuinely wants to engage in normal space exchanges with China, it should take concrete measures to remove the obstacles.

In the future, China will advance its space plan at its own pace and for peaceful purposes, while maintaining an open-minded and inclusive attitude to embrace equal and mutually beneficial cooperation. Thank you.

Cover News:

We know that the previous 10 lunar sampling missions were conducted on the moon's near side. Why did the Chang'e-6 probe choose to collect samples from the South Pole-Aitken Basin on the far side of the moon this time? How does collecting soil from the far side differ from collecting it from the near side? What potential scientific advancements could this bring to our research? Thank you.

Li Chunlai:

Thank you for your questions. The decision to land Chang'e-6 in the South Pole-Aitken Basin on the far side of the moon was based on a combination of scientific and technological considerations. Technologically, as Mr. Hu mentioned, direct communication with Earth is not possible from the far side of the moon. Therefore, sampling and landing on the far side require overcoming this obstacle by launching a relay satellite to facilitate communication for sampling and landing operations on the far side of the moon. This is an important validation and enhancement of deep space communication technology. Additionally, the far side of the moon has a much more complex terrain and topography compared to the near side. Successfully landing and collecting samples in such an area involve overcoming many difficulties, but it also helps to advance the technological level of lunar exploration missions, laying a foundation for future operations under complex exploration conditions.

In terms of scientific research, the South Pole-Aitken Basin is the largest, deepest and oldest basin discovered on the moon so far. Studying its geological composition, material makeup and evolutionary history can help us understand the primary geological evolution of both the moon and the Earth. To date, all the lunar samples collected by humans from previous 10 trips, including those from the Chang'e-5 mission, have been collected from the moon's near side. Chang'e-6 brought back samples from the far side of the moon for the first time, which will hopefully provide crucial insights into the dichotomy of the moon and help us gain a more complete understanding of its history. Samples from the South Pole-Aitken Basin might include materials from the moon's deep interior or even its mantle, offering valuable data for studying the moon's internal composition. Therefore, landing and sampling on the far side not only represent a significant scientific breakthrough, but also advance lunar exploration technology, highlighting the multifaceted significance of the Chang'e-6 mission.

The samples collected from the far side of the moon, and from the South Pole-Aitken Basin in particular, might exhibit significant differences in terms of mineral chemical composition compared to those from the near side. These differences will soon be revealed. Studying these samples will help reveal the unique geological structures and material compositions of the moon's far side, providing a more comprehensive understanding of the moon's geological evolution history. In other words, with the samples collected previously, we have only understood half of the moon. The Chang'e-6 sampling site is located in a vast impact basin, which may have ejected materials from the depths of the moon. These materials which were ejected during early impacts, are extremely valuable and also difficult to obtain. This offers a great opportunity to understand the internal structure and composition of the moon. The South Pole-Aitken Basin, being a massive impact crater, can provide insights into early impact history and even the early impact processes on Earth, helping us to understand the history of the early evolution and impacts of the solar system, and advancing comparative planetology research. Thank you.

Hu Hao:

I would like to add something. Mr. Li has provided a very professional introduction, so I will offer a "less professional" perspective. During the sampling process, we noticed that the soil from the far side of the moon seems different from that of the near side. The soil from the near side is relatively soft and loose, while the soil from the far side seems different. Therefore, we have high expectations and hope that scientists will make significant new discoveries. Thank you.

Television Broadcasts Limited:

This mission took a total of 53 days and marks the first time that humans have collected lunar soil samples from the far side of the moon. What were the most difficult and challenging parts of the entire mission? A team from Hong Kong Polytechnic University (PolyU) participated in the development of the sampling equipment for the Chang'e-6 mission. How did their design help the team overcome these difficulties? Will there be more collaborations of this kind in the future? Thank you.

Hu Hao:

The lunar sample collection received special support from PolyU, as the Surface Sampling and Packing System used in this mission was jointly designed and developed by professor Yung Kai-leung 's team at the university. The process was quite challenging because the school does not traditionally engage in aerospace design and manufacturing. Despite this, they overcame numerous difficulties. The team was outstanding, diligent and meticulous, ensuring that the system was flawless before launch. This was true for both the Chang'e-5 and Chang'e-6 missions. In fact, I believe the Chang'e-6 sampling operation went even more smoothly than Chang'e-5, collecting more samples than anticipated. The results are promising regarding the amount collected. Moreover, we hope that more of our Hong Kong compatriots can get involved. During the initial phase of research, many universities and research institutions in Hong Kong applied for and received lunar samples. We also hope that these participating institutions and schools in Hong Kong will produce excellent results. The outcomes of the Chang'e-6 mission look very promising, and we encourage their enthusiastic participation.

Thank you.

Phoenix TV:

We understand that the lunar soil samples collected by Chang'e-6 come with high expectations. What is the research and application mechanism for these samples? Are foreign scientific research teams eligible to apply? Thank you.

Bian Zhigang:

I will invite Mr. Liu Yunfeng, who oversees international cooperation, to answer this question.

Liu Yunfeng:

The acquisition of samples from Chang'e-6 has garnered significant attention. China has been actively promoting international cooperation since the beginning of lunar and deep space exploration. To foster effective joint research and applications in the field of lunar and deep space exploration, and to facilitate the international sharing of scientific achievements, the CNSA has formulated the lunar sample management regulations and the Rules for Management of International Cooperation in Lunar Samples and Scientific Data. These regulations detail the application process for lunar samples research and provide specific information on international cooperation. China welcomes researchers worldwide to apply according to the relevant procedures and share the benefits. Thank you.

CGTN:

This year marks the 20th anniversary of China's lunar exploration program. Over the past 20 years, we have made remarkable achievements, from taking photos of the moon to the first landing on the far side of the moon and bringing back lunar samples. Looking ahead, what are China's plans for deep space exploration? What key projects will be prioritized in China's space program? Thank you.

Bian Zhigang:

In the future, China's deep space exploration will focus on two aspects: lunar exploration and planetary exploration. In terms of lunar exploration, following the complete success of the Chang'e-6 mission, we will proceed with the Chang'e-7 and Chang'e-8 missions. The Chang'e 7 mission is mainly to survey resources at the lunar south pole , while Chang'e 8 will conduct technical verification of the in-situ utilization of lunar resources. In the future, we plan to collaborate with international partners to build an International Lunar Research Station (ILRS) , promoting shared use and benefit from our lunar exploration results. In terms of planetary exploration, China has approved four missions to be accomplished within 10-15 years. Among them, the Tianwen -1 Mars mission, which was a complete success in 2021, marked China's advancement beyond lunar exploration. Our future missions will include asteroid exploration, a Mars sample return mission, and the exploration of other planetary systems. These missions aim to advance our understanding of the origin and evolution of the solar system, study the impact of small celestial bodies and solar activity on Earth, and search for signs of extraterrestrial life, among other scientific goals.

Around 2025 , Tianwen-2 will embark on its main mission of asteroid exploration. It will aim at a near-Earth asteroid for companion flight and sample retrieval. The Tianwen-3 Mars mission, set for around 2030, aims to return samples from Mars to Earth. Tianwen -4 is scheduled to explore the Jupiter system by around 2030. Currently, we are intensively working on the key technologies and the detailed implementation plans for both the Tianwen-3 and Tianwen-4 missions. Additionally, we are also deliberating major national science and technology projects, including heavy-lift launch vehicles and reusable space transport systems. In the future, we will also strengthen basic research, accelerate the R&D of key and core technologies, and promote the innovative development of space science, space technology, and space application.

I think we may have several more press conferences here over the next 10 years. Thank you.

Beijing Youth Daily:

As we eagerly anticipate the exciting discoveries that the Chang'e-6 lunar probe will bring back, I would like to inquire about the findings from the 1,731 grams of lunar samples retrieved by Chang'e-5 in December 2020. Over the past three and a half years, what progress has been made in researching these lunar samples? Have we uncovered any secrets about the moon? Thank you.

Li Chunlai:

It has been over three years since the Chang'e-5 mission retrieved lunar samples, specifically basalts collected from the near side of the moon. Since then, Chinese scientists have conducted systematic research on these samples and achieved numerous breakthroughs, many of which have been published in major academic journals such as National Science Review, Science Bulletin, Nature and Science. More than 100 high-quality journal articles have been published in this short period, covering topics such as the moon's geology, geochemistry, lunar chronology, space weathering, lunar impact glasses, and the utilization of lunar soil. One of the most significant discoveries is that the basalts retrieved by the Chang'e-5 probe were found to have been formed by volcanic eruptions approximately 2 billion years ago. Distinct from the research results on older samples returned by the Apollo missions, this discovery has extended the known period of lunar volcanism by nearly 1 billion years. In addition, the Chang'e-5 samples have been identified as a new type of basalt, formed from a previously unknown magmatic activity. This discovery fills the gap in lunar sample studies conducted by the United States and the former Soviet Union. Moreover, a special mineral named Changesite-(Y) was also discovered in the Chang'e-5 samples, and other chemical features of these samples indicate that volcanic activity during the moon's geological evolution may have occurred in a unique environment. Chinese scientists have also thoroughly studied the glass materials in the Chang'e-5 lunar regolith samples, detecting a variety of space-weathered hydroxyl radicals and iron nanoparticles. Therefore, the research results have been quite fruitful. Thank you.

Liu Yunfeng:

Allow me to share an additional update. China has initiated the first application and review process for international participants to study Chang'e-5 lunar samples. We will inform the media at the appropriate time once the results are available.

China Media Group:

My question for the spokesperson: General Secretary Xi Jinping noted in his congratulatory message on the complete success of the Chang'e-6 mission that over the past 20 years, all those involved in the project have embarked on a path of high-quality and highly effective lunar exploration. How do you define "high-quality" and "highly effective" in the context of lunar exploration? What are the specific examples? Thank you.

Bian Zhigang:

I believe this is evident in every aspect of our work. Our lunar exploration project has been ongoing for 20 years. Over the past two decades, we have faced this momentous project head-on and completed the engineering and scientific tasks beyond the set targets, all within the specified timeframe and budget. I'll leave more details to Mr. Hu.

Hu Hao:

I have been involved in this project for quite some time, so I'll break it down for you. China's lunar exploration project started relatively late, as multiple countries had already launched their projects before us. Around the time of the Chang'e-1 probe, other countries had already conducted more than 100 lunar exploration activities. Therefore, it was a late start for China. However, we made sound plans, drawing upon the experiences of other countries, and made appropriate arrangements in accordance with China's national conditions. We proposed a three-step lunar exploration strategy at that time: "orbiting, landing, and returning." This has advanced the country's overall space exploration technology, nurtured a group of talented individuals, and improved our understanding of the moon. With reasonable costs and a comparatively short period, this project has yielded significant results. Today, the reason why some foreign experts and institutions have taken the initiative to work with us in exploring the moon is our hard work over the past two decades. Our success has ensured our credibility and boosted the confidence of all participants.

In addition, we are also witnessing improvements in technological capacities and their enabling conditions. At the time of the Chang'e-1 probe, we lacked the Chinese Deep Space Network , the measurement techniques related to the re-entry corridor , and the ability to conduct high-speed re-entry and return at escape velocity. However, these challenges have been overcome in the past two decades. China has not only landed on the moon but also reached Mars. Over this period, we have forged a path, developed a skilled team, and achieved numerous accomplishments. Thank you.

Nanfang Daily, Nanfang Plus: 

The Chang'e-6 spacecraft carried international payloads from France, Italy, the ESA, and Pakistan. Could you provide details on these collaborations? What additional international cooperation projects are planned for future lunar and deep-space exploration missions? Thank you.

Bian Zhigang:

As you mentioned earlier, China is committed to collaborating fully with global peers in aerospace exploration. I'll pass the floor to Mr. Liu Yunfeng for further details.

Liu Yunfeng:

Thank you for your question. The situation of the international payloads on Chang'e-6 has been of great interest to everyone. Mr. Bian has already introduced that there were a total of four international payloads. I will introduce them one by one. On May 8, the cube satellite from Pakistan successfully separated from the Chang'e-6 probe after the near-moon braking maneuver, captured images of the moon, and transmitted them back, thus successfully completing its mission. On May 10, the CNSA handed over the data from the cube satellite to the Pakistani side. On June 2, after the lander and ascender module landed on the moon, France's lunar radon detector, and the lunar surface negative ion analyzer of the ESA, smoothly carried out scientific explorations. Italy's laser retroreflector is working normally; the radon detector operated on the lunar surface for 32 hours, and the lunar surface negative ion analyzer functioned for 3 hours and 50 minutes. It should be said that the performance of these international payloads has been outstanding.

China has always adhered to the principles of equality and mutual benefit, peaceful use, and inclusive development, actively carrying out international cooperation in space. In the Chang'e-4, Chang'e-5, Chang'e-6 and Tianwen-1 missions, China has conducted various forms of international cooperation with space science and technology institutions in many countries, including payload carrying, measurement and control support, orbital data exchange, and joint research on lunar samples. For the upcoming Chang'e-7 mission, six international payloads have been selected. Last year, the announcement for international cooperation opportunities for Chang'e-8 was released, offering around 200 kilograms of payload space to the international community, while more than 30 cooperation applications have so far been received. In the ILRS project, the CNSA has signed cooperation agreements with more than 10 countries. Currently, China is formulating feasibility studies and will collaborate with partners on various aspects such as tasks, project design, joint implementation and scientific data sharing for future projects. Thank you.

Shou Xiaoli:

Let's continue with the questions. Two journalists have raised their hands. These will be the last two questions.

Now TV:

The China Manned Space Engineering Office (CMSEO) previously announced the completion of the selection process for the fourth batch of reserve astronauts, including a payload expert from Hong Kong. Has this selected individual started training? When do you estimate that she will begin participating in the country's space missions? Are there any plans to recruit more Hong Kong compatriots to participate? Thank you.

Bian Zhigang:

Thank you for your questions. The related work is currently in progress. Please follow the official updates from the CMSEO for further information. Thank you.

Shou Xiaoli:

The last question.

The Poster News APP:

In this Chang'e-6 mission, during the processes of launching, orbiting, landing, sampling, ascending and returning, what eye-catching small details did you meticulously design? What are the stories behind them, and could you share some with us? Thank you.

Hu Hao:

I'll share one detail that everyone is very interested in. During the launch, we did not expect such heavy rain, which made the Long March 5 rocket experience significant rain right from the start. This was unexpected. We initially thought the weather would be fine, but it ended up raining heavily. However, a rainbow later appeared, which was a pleasant surprise.

Additionally, another point of great interest is the work conducted on the moon. There were questions earlier about the pattern left on the moon's surface during the sampling process. This is a matter of interpretation; it was not done deliberately but has indeed sparked people's imaginations. The way it was formed led many to speculate whether it was intentional. However, it was not. Nonetheless, it is indeed very interesting. This is something subject to interpretation, and please appreciate the mystery behind this.

That is all from me. Thank you, everyone.

Lin Yiming:

The question raised by the journalist just now was particularly good. After the lander and ascender touched down on the lunar surface, we took a photograph of the whole scene. But how was this photo taken? Our researchers are very clever. As previously mentioned, the lunar exploration project is of high quality and high efficiency. We installed a very nimble, short-term use camera where the probe's counterweights were placed. After the main mission was completed, the camera detached from the lander and took a complete photo of the lunar surface. That's all from me. Thank you.

Shou Xiaoli:

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

Translated and edited by Xu Xiaoxuan, Ma Yujia, Zhou Jing, Lin Liyao, Qin Qi, Yan Bin, Zhu Bochen, Zhang Rui, Huang Shan, Li Huiru, Liu Qiang, Wang Yanfang, Yuan Fang, Liu Sitong, Wang Yiming, Wang Qian, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Zhang Jianhua, administrator of the National Energy Administration (NEA)

Mr. Li Fulong, director general of the Department of Development and Planning of the NEA

Mr. Du Zhongming, director general of the Department of Electricity of the NEA

Mr. Li Chuangjun, director general of the Department of New Energy and Renewable Energy Sources of the NEA

Chairperson:

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

Date:

June 20, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Zhang Jianhua, administrator of the National Energy Administration (NEA), to brief you on relevant developments and answer your questions. Also present today are Mr. Li Fulong, director general of the Department of Development and Planning of the NEA; Mr. Du Zhongming, director general of the Department of Electricity of the NEA; and Mr. Li Chuangjun, director general of the Department of New Energy and Renewable Energy Sources of the NEA. Now, I'll give the floor to Mr. Zhang for his introduction.

Zhang Jianhua:

Ladies and gentlemen, good afternoon. I am pleased to meet with friends from the media to brief you on implementing the new energy security strategy and promoting high-quality energy development.

Energy is a crucial material foundation and driving force for economic and social development, directly impacting the people's livelihoods and national security. Since the 18th National Congress of the Communist Party of China (CPC), General Secretary Xi Jinping has placed significant emphasis on energy work. In June 2014, he proposed the new energy security strategy, featuring reforms in four main aspects and comprehensive international cooperation, which provides a fundamental guideline for China's high-quality energy development in the new era. Over the past decade, we have vigorously promoted revolutions in energy consumption, supply, technology and institutional frameworks, and strengthened international cooperation in all aspects, achieving historic milestones in energy development. These efforts have strongly supported the building of a moderately prosperous society in an all-round way and the new journey of building a modern socialist country in all respects.

We have actively embraced the concept of green development, fully leveraging the driving role of the transformation on the consumption side. Our energy consumption structure has continuously improved, and green and low-carbon energy development has reached new heights. From 2013 to 2023, the proportion of coal consumption decreased from 67.4% to 55.3%, a cumulative decline of 12.1 percentage points. Non-fossil energy sources, such as wind power, solar power, hydropower, nuclear power and biomass, increased their share from 10.2% to 17.9%, a cumulative increase of 7.7 percentage points. Profound changes have taken place in energy use across industries, transportation, construction and daily life. The quality of petroleum products has been upgraded from "China III" to "China VI" emission standards, significantly contributing to improved air quality. Additionally, we established the world's largest charging infrastructure system, significantly enhancing the environmentally friendly aspects of economic development.

We have adhered to a holistic approach to national security, focusing on enhancing domestic resource production capabilities to ensure our energy independence. The stability and security of our energy supply have reached new heights. From 2013 to 2023, total primary energy production increased by 35%. Raw coal production capacity continued to strengthen, crude oil production remained at 200 million metric tons, and installed power generation capacity and natural gas production doubled. Wind power installed capacity grew from over 76 million kilowatts to more than 440 million kilowatts, increasing nearly fivefold. Photovoltaic power installed capacity expanded from over 19 million kilowatts to over 600 million kilowatts, growing more than thirtyfold. In 2023, the newly installed renewable power generation capacity exceeded half of the global total, with the cumulative installed capacity accounting for nearly 40% of the global share. The capacity for west-to-east electricity transmission exceeds 300 million kilowatts, supporting about one-fifth of the electricity demand in central and eastern China. The total length of long-distance oil and gas pipelines increased from over 100,000 kilometers to 190,000 kilometers, an approximately 80% growth. Per capita household electricity consumption nationwide increased from 500 kilowatt-hours (kWh) to nearly 1,000 kWh, doubling over the period, effectively meeting the energy needs of 1.4 billion people.

We are committed to innovation-driven development, accelerating self-reliance and strength in energy science and technology. Traditional energy industries have been transformed and upgraded, while we fostered competitive advantages in new energy sectors. Our energy technology has reached internationally advanced levels. We developed independent intellectual property rights for third-generation domestically developed pressurized water nuclear technology, including the Hualong One. The commercial demonstration project of the world's first high-temperature gas-cooled reactor in Shidaowan, Shandong province, was completed and put into operation. Breakthroughs were made in unconventional oil and gas exploration and heavy-duty gas turbine development. We maintained a world leading position in technologies like ultra-high voltage power transmission and high-parameter coal-fired power generation. The wind power industry established a comprehensive industrial chain from equipment manufacturing, development and construction to operation and maintenance. The conversion efficiency of photovoltaic cells has set multiple world records, and the costs of wind and solar power generation decreased by 60% and 80%, respectively. Our hydropower industry leads globally, exemplified by the Baihetan hydropower station, which has the world's largest single-unit capacity. The industrialization of cutting-edge technologies like new energy storage and hydrogen energy accelerated.

We continue to deepen reforms, promoting better interplay between efficient markets and well-functioning government. We have improved the legal framework for energy, accelerated the development of the energy market, and enhanced the effectiveness of energy governance. Reforms in key energy areas and critical sectors remain ongoing. Laws and regulations on energy have been strengthened, with a draft energy law undergoing review by the Standing Committee of the National People's Congress, and the revision of the laws on electricity, coal and renewable energy progressing in an orderly manner. A unified national electricity market system is rapidly developing, with over 60% of electricity consumption now subject to market-based transactions. The oil and gas market system is taking shape, and mechanisms for medium- and long-term coal contracts and market pricing are continually improving. The dividends of energy reforms continue to drive vitality among various business entities, providing powerful momentum for high-quality energy development.

We are committed to the vision of building a global community of shared future, expanding high-standard openness in the energy sector, boosting pragmatic international cooperation, and increasing involvement in global energy governance. Energy cooperation with the global community has expanded in all dimensions. Overseas oil and gas cooperation zones and import channels have been further strengthened. Several landmark projects have been completed and started operation, such as the Belo Monte ultra-high voltage (UHV) direct current (DC) transmission project in Brazil and the first overseas Hualong One nuclear reactor in Pakistan. We have achieved electricity interconnection with seven neighboring countries. We established two important diplomatic mechanisms, the Belt and Road Energy Partnership, and the Global Clean Energy Cooperation Partnership. A total of six regional energy cooperation platforms have proven beneficial, including those with ASEAN and the League of Arab States. China has become an increasingly important force in the global energy governance system.

Chinese-style modernization raises new and higher requirements for energy development. We will continue to implement the new strategy for energy security and accelerate the planning and development of a new type of energy system, fully promoting the high-quality development of the energy sector. Thank you.

Shou Xiaoli:

Thank you, Mr. Zhang. The floor is now open to questions. Please identify the news agency you represent before raising questions. 

Shenzhen Satellite TV:

I have noticed that developing a new energy system has become a hot topic on the internet regarding the energy sector. I'd like to ask, what specifically makes this energy system "new?" What is the current progress in implementing it? Thank you.

Zhang Jianhua:

Thank you for the questions. I will answer them. Developing a new energy system is essential for ensuring national energy security. The report to the 20th CPC National Congress outlined the important strategic decision of moving faster to plan and develop a new energy system. The Central Economic Work Conference has made specific arrangements in this regard for two consecutive years. This is also the overall objective and a strategic task of energy development in the new era. In the past two years, the NEA has thoroughly implemented the decisions and arrangements of the CPC Central Committee and the State Council, made greater efforts to ensure both high-quality development and greater security, deepened understanding of the new energy system in terms of its core meaning and distinctive features, and implemented various tasks and measures through solid efforts. We have made progress in developing the new energy system, encompassing four aspects:

First, the energy landscape has seen a significant shift towards cleaner sources. In recent years, we've rapidly increased our non-fossil energy supply. During the first three years of the 14th Five-Year Plan, annual growth outpaced that of the 13th Five-Year Plan period by 40%. The share of clean energy in total energy consumption rose by 0.7 percentage point each year. Notably, the installed capacity of non-fossil energy power generation has now surpassed that of thermal electricity for the first time.

Second, the energy supply side has become more resilient. In 2023, production of primary energy resources - including coal, oil, and gas - reached 4.83 billion tons of standard coal equivalent. Currently, the country's total installed power generation capacity exceeds 3 billion kilowatts. In recent years, crude oil production has held steady at 200 million tons annually. Natural gas production has increased by more than 10 billion cubic meters each year for seven consecutive years since 2017. Additionally, our capacity to manage energy reserves has continued to improve.

Third, the industrial system has been more advanced. China's new energy power generation technologies now lead the world. The "new three," including photovoltaic cells, have become the new hallmark of China's foreign trade exports. The country also constructed and commissioned its first commercially operated high-temperature gas-cooled reactor. Innovative modes and formats continue to emerge. Smart microgrids have enabled the integrated development of power sources, grids, electricity loads, and energy storage. Meanwhile, virtual power plants are effectively guiding consumers to participate willingly in demand response initiatives.

Fourth, the foundation for energy governance has been strengthened. The draft Energy Law has been submitted to the National People's Congress for deliberation. A multi-layered, unified electricity market system is being developed step by step. The regulatory system for natural monopolies in the energy sector has been improved. Key policies and mechanisms have been fully implemented, including the issuance of green power certificates and the renewable energy consumption responsibility weighting system.

Next, we will intensify our efforts to build a new energy system, prioritizing energy security and rapidly developing a diverse energy supply system. We will focus on reshaping the energy demand and supply model, creating synergy in transforming consumption patterns, and accelerating the development of new quality productive forces in the energy sector.

Red Star News:

As the meteorology agency predicts, most parts of China will experience higher temperatures this summer than previous years. It will likely be a challenge to ensure power supply and meet peak demands on hot summer days. What is your plan for ensuring a stable power supply during extreme weather? How will you satisfy residential electricity demands? Thank you.

Zhang Jianhua:

Mr. Du, please answer these questions.

Du Zhongming:

Thank you for the questions. As you have seen, many parts of China have recently endured higher temperatures. Since the beginning of this year, electricity consumption has continued its rapid growth momentum. From January to May, total electricity consumption reached 3.84 trillion kilowatt-hours, up 8.6% year on year. This summer, the electricity load of the whole country will increase rapidly, and the maximum load is expected to rise by more than 100 million kilowatts year on year. After comprehensive analysis, we project that during the peak summer season, the overall power supply in the country can be ensured. However, certain areas may face tight supply during peak hours. Extreme weather events or natural disasters could further exacerbate this situation.

The NEA aims to ensure a flexible and reliable power supply under normal conditions, with measures to address short-term local shortages and contingency plans for extreme situations. We will work to ensure that all those involved fully shoulder their share of responsibilities and strive to maintain a safe and stable power supply during peak summer periods. We will take the following measures:

First, we will strengthen monitoring and early warning. We have released the forecast for electricity supply and demand during the 2024 peak summer season. Additionally, we will introduce province-specific policies, guiding key provinces and related enterprises to prepare in advance. Currently, we monitor daily electricity consumption, coal supply, and power generation capacity nationwide and in key regions, promptly addressing any issues that arise. This approach proved effective last year. In May 2023, through full efforts in organization and coordination, Yunnan's coal power plants under central dispatch operated at full capacity, achieving the highest monthly electricity generation in a decade. This strategy effectively offset the drought-induced hydropower shortages, securing a stable power supply in the lead-up to the flood season.

Second, we will fully utilize the power system's capacity during peak demand periods. We will guide power grid companies in optimizing their dispatch and operation schedules, ensuring smooth transmission from power plants to users. By leveraging regional differences in peak electricity hours, we can balance supply and demand across areas and provinces, enabling regions with surplus power to support those experiencing shortages. Additionally, we will optimize the coal power capacity pricing assessment mechanism to fully incentivize coal power plants to increase electricity generation as needed, ensuring they operate at maximum capacity and stability to meet peak demand requirements.

Third, we will accelerate the development of supporting power sources. We are pushing for supporting power projects, such as the second phase of the Banji Power Plant in Anhui and the fifth phase of the Dalad Power Plant in the Inner Mongolia autonomous region, to be completed and put into operation on schedule. 

Finally, we will guide local governments in refining their work plans. We will enhance and precisely implement load management measures to avoid power cuts, ensuring that everyone's basic daily electricity needs are consistently met. Thank you.

CCTV:

We recognize that economic and social development across all sectors is inextricably linked to how we utilize energy. Considering our dual carbon goals, how can we coordinate the high-quality development of our energy sector, and which key areas should we focus our efforts on? Thank you.

Zhang Jianhua:

Thank you for your question. I will answer it. As you mentioned, energy acts as the fundamental material prerequisite for economic and social development. China's energy supply has grown by nearly 20% since the start of the 14th Five-Year Plan period, effectively supporting the rapid growth in energy demand for the economy and people's livelihoods. With the advancement of new industrialization and urbanization, China's energy demand is expected to continue rising, which requires a reliable energy supply. At the same time, energy development must adhere to the dual carbon goals, including increasing the share of non-fossil energy consumption in primary energy consumption to around 25% by 2030 and lowering carbon emissions per unit of GDP by over 65% compared to 2005 levels. The fundamental task for high-quality energy development in the coming period is to accomplish the dual carbon goals in an orderly and steady manner while effectively safeguarding reasonable energy needs for economic and social development.

To achieve these goals, we will coordinate energy security and low-carbon transition, working on both the supply and demand sides to promote high-quality energy development. First, on the demand side, we will focus on energy-saving and carbon reduction. We will implement the action plan for energy conservation and carbon reduction during 2024-25. Efforts will be made to reduce fossil energy consumption, replace it with alternative energy sources, and strictly control coal consumption. We will continue to promote the transformation and upgrading of energy use, deeply advance the adoption of clean electricity in industries, construction, transportation, and agriculture, and enhance electric vehicle charging infrastructure. By 2025, we aim to build around 12 million charging stations nationwide and increase the electrification rate of terminal energy use to about 30%. Second, on the supply side, we will focus on increasing the quality and quantity of non-fossil energy. We will intensify the development of non-fossil energy sources, coordinating the development and utilization of nuclear power, hydropower and new energy. We will optimize the regulation capability of the power system to improve the grid's ability to accept, allocate, and regulate clean energy. At the same time, we will facilitate the issuance and trading of renewable power and green electricity certificates to promote the growth of green power consumption. Efforts will be made to ensure the increase in energy demand is increasingly met by non-fossil energy sources, with an aim to increase the share of non-fossil energy consumption by 1 percentage point each year.

Bloomberg:

I have two questions about solar power. My first question is about solar power companies. They have been handling some financially difficult times. Some, including, Trina Solar, have asked for the government intervention to help control capacity expansion in this industry. Is there anything that the government can do to help out that important industry? Secondly, China has added so much solar power in recent years that certain regions are seeing higher curtailment rates. Is there anything that the government is doing to try to increase solar adoption, whether through power market reforms or other measures? Thank you.

Zhang Jianhua:

This question goes to Mr. Li.

Li Chuangjun:

Thank you for your question. As a clean energy source, solar energy is gaining increasing attention worldwide. Currently, competition in China's photovoltaic (PV) industry is indeed very intense. To guide the healthy development of the industry, we will take the following measures:

First, we will consolidate the newly installed domestic PV power generation market. A stable domestic market is the bedrock and anchor for the sustainable and healthy development of China's PV industry. We will focus on both centralized and distributed development. On the one hand, we will strengthen the construction of large-scale wind power and PV bases in desert, Gobi, and barren regions. On the other hand, we will steadily implement the "Light Up Thousands of Households Initiative," vigorously developing distributed PV power generation. Additionally, we will accelerate the construction of new energy infrastructure networks to enhance the grid's capacity to accommodate, allocate, and regulate new energy power generation, including PV power.

Second, we will enhance interdepartmental coordination to regulate the PV power generation industry. We will work with relevant departments to organize industry associations to quickly release information about industrial scale, capacity utilization rates, and market demand. This will help guide the construction and release of upstream PV production capacity, avoiding repetitive low-end capacity construction and creating a healthy market environment.

Finally, we will continue to enhance PV technology innovation capabilities. We will fully leverage the leading role of the national energy research and development innovation platform, directing resources to support the research and innovation of advanced technologies and capacities. This includes promoting breakthroughs in key technologies for high-efficiency solar cells and advancing technology upgrades in key basic materials. Additionally, we will work with relevant departments to strengthen the development of the PV industry standards system. Through reinforcing standards and promoting innovation, we hope to promote the healthy development of the industry.

Regarding your second question, it is true that with the large-scale and rapid growth of new energy, including PV power generation, the transition to clean and low-carbon energy has accelerated in recent years. However, the characteristics of energy supply and demand have also changed. To better promote new energy development, we will actively advance the construction of the electricity spot market to facilitate the generation of time-based price signals that more accurately reflect electricity supply and demand. Six regions, including Shanxi, Guangdong, Shandong, Gansu, western Inner Mongolia, and Hubei, have implemented measures to guide users to consume more electricity during peak new energy production periods through price signals. Additionally, we will further expand spot market coverage, steadily and orderly promote the participation of new energy in the electricity market, and encourage new energy consumption and the sustainable, healthy development of the new energy industry through effective market mechanisms. Thank you.

South China Morning Post:

As China progresses towards the dual carbon goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060 and the objective of building a new power system with new energy as the mainstay, the proportion of new energy in the power grid system is gradually increasing. However, this also brings various challenges, including the excessive distributed PV installations in some regions. This leads to reverse power flow and affects grid stability. What measures will be taken to promote the utilization and integration of renewable energy power generation? Thank you.

Zhang Jianhua:

Thank you for your question. I will invite Mr. Du Zhongming to answer it.

Du Zhongming:

Indeed, the issue you raised is very important, and we are continuously strengthening monitoring and conducting in-depth research. As Mr. Zhang Jianhua mentioned, China's installed power capacity has reached 3 billion kilowatts. Last year, the installed capacity of non-fossil energy in China exceeded 50%, historically surpassing the installed capacity of fossil energy. With the further acceleration of new energy development, by the end of April this year, the cumulative installed capacity of wind and PV power generation in China exceeded 1.1 billion kilowatts, a year-on-year increase of about 38%, significantly increasing the demand for utilization and integration. To improve the power system's ability to accommodate new energy, we need to accelerate the construction of supporting grid projects for new energy and urge grid companies to optimize grid connection processes. This year, we are focusing on promoting the construction and commissioning of 33 key projects, including the Sichuan-Chongqing 1,000kV ultra-high voltage (UHV) alternative current (AC) project and the Qinghai Hongqi 750kV transmission and transformation project. Additionally, we will accelerate the construction of 37 key projects, including the Shaanbei-Anhui UHV direct current (DC) project and the Gansu-Zhejiang UHV DC project, to provide strong support for new energy consumption. Furthermore, we are actively promoting the adjustment of system regulation capabilities and the coordinated development of grid sources. We will maximize the role of the power grid as a resource allocation platform, flexibly adjust the mode of dispatch and operation, and enhance inter-provincial mutual assistance and resource-sharing capabilities. In addition, we have optimized the new energy utilization rate targets, allowing for more flexible targets for some areas with favorable resource conditions, but generally not lower than 90%, and we conduct dynamic assessments based on the annual consumption situation. While enhancing the consumption capacity of the power grid, we have also proposed measures to improve the comprehensive carrying capacity of the distribution network. Regarding the distributed PV challenges you mentioned, they mostly occur on the distribution network side. To meet the requirements of large-scale development of distributed new energy, we will strengthen the construction and transformation of the distribution network, build a strong and flexible grid structure, enhance the level of intelligence, and improve the dispatch operation mechanism. By 2025, the distribution grid will be able to accommodate about 500 million kilowatts of distributed new energy.

Next, we will focus on constructing a new power system. We will guide local energy authorities, power enterprises, and various dispatched agencies to earnestly implement relevant requirements. We will adopt multiple measures to ensure the effective accommodation of new energy power, promote the construction of a new energy supply and consumption system, and provide solid support for the high-quality development of new energy.

Thank you!

Jinan Times:

Coal is currently the mainstay of China's energy supply, serving as a crucial guarantee for energy security and a key raw material for industrial production. As the world's largest energy producer and consumer, could you please provide an update on the high-quality development of coal in China? Thank you.

Zhang Jianhua:

I will hand this question to Mr. Li Fulong.

Li Fulong:

Thank you for your important question. Coal remains the main energy source in China, playing dual roles as a significant fuel and industrial raw material. Use of coal provides a solid footing for ensuring national energy security. Over the past decade, we have balanced development and security, continued to develop digital and smart coal mines, rationalized the expansion of advanced capacity, and strengthened the clean and efficient utilization of coal. The high-quality development of coal industry has been cemented, providing a solid foundation for ensuring national energy security. 

This is reflected in four aspects:

First, coal supply security has been continuously enhanced. Coal development has increasingly gravitated towards resource-rich and competitive western regions. Raw coal production in Shanxi, Shaanxi, Inner Mongolia and Xinjiang increased significantly from 2.59 billion tons in 2013 to 3.83 billion tons in 2023, with the share in national output up 11.8 percentage points, playing a leading role in coal supply. Large-scale modern coal mines now dominate production, reducing the number of mines from over 10,000 to about 4,200.

Second, there have been notable achievements in green and intelligent coal development. Environmentally friendly coal exploitation technologies have been widely applied, leading to marked improvements in ecological conditions at mines. The mine water comprehensive utilization rate and land reclamation rate both rose by more than 10 percentage points. The intelligent construction of coal mines has entered a new phase of accelerated and deepened development. As of the end of May 2024, investments in intelligent coal mine construction have exceeded 112 billion yuan. Nationwide, 1,993 intelligent coal mining faces and 2,232 intelligent heading faces have been developed, effectively reducing manpower while improving safety and efficiency. Preliminary statistics show that key coal mines have reduced single-shift personnel at smart mining faces by more than six people, with work efficiency increasing by over 20%, marking a significant transformation in coal production methods.

Third, clean and efficient coal utilization has seen continuous improvements. Efforts have been made to enhance coal washing and dressing capabilities. The commercial coal quality evaluation and management criterion have been improved continuously, prompting steady upgrades of coal quality. Meanwhile, in the electricity sector, which is the primary field of coal consumption, efforts to phase out outdated coal-fired units have been coordinated with reforms to save energy, reduce carbon emission, improve flexibility, and renovate heat supply system. As of the end of last year, over 95% of coal-fired units have achieved ultra-low emissions, and China has established the world's largest clean coal-fired power supply system. Key breakthroughs have also been achieved in coal-to-oil and coal-to-gas technologies and equipment, continuously optimizing related operation indices.

Fourth, there has been leapfrog development in coalbed methane (CBM), or coalmine gas, exploitation and utilization. The coal industry has continued to promote comprehensive CBM governance, demonstrating significant economic, social, and ecological benefits. The CBM industry has realized large-scale development. Two major industrial bases have been established in the Qinshui Basin and the eastern margin of the Ordos Basin. National CBM production reached 11.77 billion cubic meters in 2023, nearly quadrupling the 2013 level, serving as a significant supplement to the natural gas supply. Thank you!

Cnr.cn:

My question is still about renewable energy. Mr. Zhang just mentioned that China's contribution exceeded half of the newly installed global renewable energy capacity in 2023. Furthermore, China's wind power and photovoltaic products have been exported to more than 200 countries and regions worldwide. I'd like to ask: What experiences have we gained in promoting the utilization of renewable energy? Thank you.

Zhang Jianhua:

Thank you. I'll invite Mr. Li Chuangjun to answer this question.

Li Chuangjun:

Thank you for your question. Since the 18th National Congress of the CPC, General Secretary Xi Jinping has on many occasions made important instructions on the development of renewable energy. Guided by the new energy security strategy of "Four Revolutions and One Cooperation," our country's renewable energy development has achieved leapfrog progress, moving from small-scale to large-scale, and from catching up to leading the way. China's renewable energy development has garnered worldwide attention. Here are the main experiences we've gained:

First, we have benefited from vast market potential. As the world's largest energy producer and consumer, our country has enormous power demand and a strong need for new installed capacity. This vast space has provided ample opportunities for renewable energy development in China. As Mr. Zhang mentioned, of the 510 million kilowatts of the global renewable energy capacity additions in 2023, China's contribution exceeded 300 million kilowatts, surpassing the rest of the world combined.

Second, we have benefited from proactive policy support. Since the implementation of the Renewable Energy Law, a comprehensive policy support and regulatory system for renewable energy has been gradually established, encompassing laws and regulations, strategic planning, industrial policies, standard systems, and supervision and management.

Third, we have benefited from timely policy adjustments. We have promptly adjusted and improved support policies. In the early stages, we reduced the price of on-grid electricity for new energy generation projects annually based on technological advancements and cost reductions in wind power and photovoltaics. For example, the benchmark on-grid electricity price for photovoltaics in Class III resource areas in 2020 was 0.06 yuan lower than in 2019. In recent years, we have gradually shifted the development of the new energy industry from policy-driven to market-driven, vigorously promoting wind power and photovoltaics into a new development stage and having achieved grid parity through competitive allocation.

Fourth, we have benefited from extensive market participation. New energies like wind power and photovoltaics enjoy a high degree of marketization, with an open market environment, diverse market entities, active private enterprises, sufficient market competition, and vibrant innovation. Taking photovoltaics as an example, there are over 100 listed companies in China's photovoltaic industry.

Fifth, continuous technological innovation has been key. Our country's renewable energy industry has consistently pursued technological innovation, satisfying ever-changing market demands through accelerated iterations of technology and products. Currently, China's wind power sector has reached an internationally advanced level in areas such as large-scale turbines and floating units. Crystalline silicon photovoltaic technology continues to upgrade, further consolidating and enhancing China's leading position internationally. Thank you.

Tide News:

Recently, we've heard some Western countries hyping up the issue of "overcapacity" in China's new energy sector, claiming that China's new energy exports are impacting international markets. Could you please comment on this from the NEA's perspective?

Zhang Jianhua:

Thank you for your question. Mr. Li has just introduced some data on our country's new energy development, from which I believe many conclusions can be drawn. China's new energy industry has proven its true capabilities through open competition and represents advanced production capacity. It has not only enriched global supply and alleviated international inflationary pressures but also made significant contributions to global climate change mitigation and green transformation. This achievement has been fully recognized by the global energy industry. From both the perspectives of comparative advantages and global market demand, China's new energy industry does not face the so-called "overcapacity" issue.

In the context of economic globalization, we should adhere to the principles of a market economy and the law of value when addressing issues of production capacity. The balance between supply and demand is inherently relative, often characterized by imbalance as the norm. This dynamic is common in market economies, where moderate oversupply can drive technological advancement and industry-wide cost reductions. The primary solution to addressing these issues lies in allowing the market to adjust in accordance with the law of value.

Take photovoltaics as an example. On one hand, the global photovoltaic industry is experiencing a prosperous growth cycle, with companies eager to expand their production capacities. According to estimates by the International Renewable Energy Agency, to achieve the goals of the Paris Agreement, the cumulative global installed capacity of photovoltaics is projected to surpass 5.4 billion kilowatts by 2030, nearly quadrupling the capacity installed by 2023. Therefore, the development prospects are very promising. In China, the upstream photovoltaic industry is predominantly composed of highly competitive private companies. Due to optimistic expectations for future market growth, these companies are actively expanding their production capacities. On the other hand, the adoption of new technologies and the phase-out of outdated capacities require time. Technological advancements in the photovoltaic industry have been rapid, stabilizing new technological pathways since 2023 and notably reducing investment costs in production capacity equipment. Companies are continuously commissioning advanced capacities to maintain overall market competitiveness. Meanwhile, outdated capacities still exist on a large scale and need to be gradually phased out. During the transition period of technological pathways, the coexistence of new and old capacities has also increased the overall industry capacity. Additionally, some companies need to enhance their core competitiveness. In the context of the industry's continuous technological development, some companies have gradually lost market competitiveness due to a lack of ability to continuously optimize processes and upgrade production lines. Moving forward, we will proactively collaborate with relevant departments to regulate the orderly development of the photovoltaic industry and promote its healthy and sustainable growth.

Furthermore, I would like to emphasize that the essence of international cooperation lies in complementary advantages and mutual benefits. There are broad common interests and significant international cooperation opportunities among all parties in the green transition. Therefore, China aims to collaborate with all parties to uphold the basic principles of fair competition and open cooperation in a market economy. Together, we strive to enhance our clean energy industry and supply chains, share knowledge and experiences, and contribute significantly to the global green and low-carbon transition. Thank you.

Nanfang Daily:

Recently, the State Council issued an action plan for energy conservation and carbon reduction during 2024-25. Could you please provide us with an update on the progress made in promoting energy conservation and carbon reduction within the energy sector? What are the key measures planned moving forward? Thank you.

Zhang Jianhua:

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

Li Fulong:

Thank you for your question. The issue you have raised is very important. Energy conservation and carbon reduction are vital steps in actively and steadily achieving carbon peaking and carbon neutrality, comprehensively advancing the Beautiful China Initiative, and promoting the comprehensive green transformation of economic and social development. Over the past decade, under the guidance of General Secretary Xi Jinping's new energy security strategy of "Four Reforms and One Cooperation," which focuses on energy consumption, supply, technology and system reforms and international cooperation, China has significantly improved its energy utilization efficiency, positioning itself as one of the world's leaders in reducing energy intensity. At the same time, we must recognize that China faces significant pressure from energy demand, and the challenges of energy conservation and carbon reduction are formidable. Currently, China's per capita energy consumption is only about two-thirds of the average level of OECD countries, and energy demand will continue to grow steadily in the foreseeable future. According to the requirements of balancing energy security and low-carbon transformation, we need to continue to make coordinated efforts from both the supply and consumption sides to promote energy conservation and carbon reduction with greater intensity.

On the one hand, we need to increase the supply of non-fossil energy on the supply side. This involves accelerating the construction of large wind power and photovoltaic bases, actively and safely developing nuclear power in an orderly manner, promoting offshore wind power development and construction, and coordinating the integrated development of hydropower, wind power, and photovoltaic power in major river basins. We also need to vigorously develop distributed renewable energy systems. Additionally, we will advance the construction of new energy infrastructure networks to improve the grid's ability to accept, allocate, and regulate clean energy. By 2030, 70% of the increase in energy consumption will be met by non-fossil energy.

On the other hand, we will enhance the level of green and low-carbon energy use on the consumption side. This includes supporting key industries in implementing energy conservation and carbon reduction measures, innovating energy supply and consumption models in industrial parks, and continuing to vigorously expand electric vehicle charging infrastructure. We will also take various measures to promote the electrification of sectors such as industry, construction, and transportation. By 2025, the electrification level of terminal energy consumption is expected to reach approximately 30%. We will continue to enhance the issuance of green certificates and strive to ensure green certificates are available for all renewable energy projects, including wind power, solar power, and biomass power, as early as possible. Additionally, we will enhance the green certificate trading mechanism to promote the expansion of green energy consumption across society. Thank you.

21st Century Business Herald:

You have just mentioned the continuous increase in the installed capacity of new energy. We believe that developing new ways of storing energy is also very important. The Report on the Work of the Government this year also, for the first time, proposed the creation of new energy storage methods. Could you please provide an update on the current progress of new types of energy storage projects? What additional work is needed to further develop new types of energy storage across China? Thank you.

Zhang Jianhua:

We will have Mr. Li Chuangjun answer this question.

Li Chuangjun:

Thank you for your question. New types of energy storage are a crucial component of both new power and new energy systems. They are key supporting technologies in China's efforts to build these new systems. Their development can drive the growth of upstream and downstream industrial chains and promote scientific and technological innovation, talent cultivation, and investment and employment. They have become one of the new growth drivers for the development of new quality productive forces.

As of the end of May this year, China's installed capacity of new energy storage projects that had been constructed and put into operation exceeded 38 million kilowatts, with an average storage duration of 2.2 hours. There are 12 provinces and regions with an installed capacity of over 1 million kilowatts. New energy storage technologies continue to emerge, with a diverse range of technological approaches flourishing. Currently, lithium-ion battery storage still holds the dominant position and is widely applied in new energy power stations, substations and industrial parks. In addition, technologies such as compressed air energy storage, flow battery energy storage, and flywheel energy storage are also developing rapidly. Several large-scale projects are under accelerated construction, including 300,000-kilowatt class compressed air energy storage projects, 100,000-kilowatt class flow battery storage projects, and megawatt-level single-unit flywheel energy storage projects. New technologies, such as gravity energy storage, liquid air energy storage, and carbon dioxide energy storage, are also being implemented. Overall, the field is demonstrating a trend of diversified development.

Next, the NEA will strengthen the tracking of new types of energy storage pilot demonstrations and advance innovation in new energy storage technologies. We will enhance the mechanisms for grid connection, dispatch and operation of new energy storage systems while promoting their regulatory role. We will proactively plan and strengthen top-level design, promote the scientific and efficient allocation of new energy storage in new energy bases, and promote the high-quality development of the new energy storage industry. Thank you.

Shou Xiaoli:

One last question, please. 

The Poster News APP:

When it comes to energy, the general public is most concerned about whether there's enough electricity and natural gas for their homes. What specific measures has China taken to ensure energy supply for people's basic needs since the proposal of the new energy security strategy? Thank you.

Zhang Jianhua:

Thank you for your question. People's direct experience of high-quality energy development is that their energy needs have been met, and the quality of energy use has improved. In recent years, the NEA has upheld a people-centered approach, safeguarding energy supply for basic needs and continuously improving people's sense of fulfillment.

The quality and level of general energy services have greatly improved. China's natural gas consumption rose from 170.5 billion cubic meters in 2013 to over 390 billion cubic meters in 2023, ensuring natural gas supply for people's basic needs. The construction and upgrading of rural power grids have been vigorously advanced. By the end of 2015, all people in China had gained access to electricity, with China leading developing countries in achieving universal electricity access. By the end of 2020, the large power grid covered all counties nationwide, and villages within its coverage were provided with three-phase power, effectively ensuring power supply for rural production and life. Priorities have been given to ensure power supply for people's basic needs. We have guided local governments to unlock potential in demand response from the supply side and optimized power curb measures based on industrial structures, ensuring that electricity use for people's basic needs and important users is not affected. According to the World Bank's Business Enabling Environment assessment, China ranks 12th globally in the "Getting Electricity" indicator.

We have actively responded to people's expectations and needs for energy use in green living. We've promoted clean winter heating in northern China, tailored to local conditions, rapidly increasing the proportion of clean energy heating and significantly improving residential heating conditions. Charging infrastructure has developed rapidly, with nearly 10 million charging points for electric vehicles built. More than 95% of expressway service areas are now equipped with charging facilities. China has developed a charging infrastructure system with the largest number of facilities, the widest range of services, and the most complete types of charging facilities, supporting the energy needs of over 20 million new energy vehicles in China.

Energy projects have contributed to poverty alleviation and rural revitalization. Projects featuring comprehensive and complementary utilization of diverse energy sources, including photovoltaics, biomass energy and energy storage, have been built in agricultural industrial parks and villages where conditions allow. Poverty-alleviation photovoltaic power stations have been constructed and put into operation, with a total installed power-generating capacity of 26.36 million kilowatts. These stations generate an annual revenue of 18 billion yuan and benefit 4.15 million households that were lifted out of poverty.

Thank you!

Shou Xiaoli:

Thank you to Mr. Zhang, all the speakers, and our friends from the media. Today's briefing is now concluded. Goodbye.

Translated and edited by Wang Yiming, Zhang Junmian, Cui Can, Zhang Rui, Yan Xiaoqing, Xiang Bin, Wang Ziteng, Huang Shan, Liu Caiyi, Zhou Jing, Xu Kailin, Li Huiru, Liu Sitong, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers:

Mr. Chen Min, vice minister of water resources

Mr. Wu Wenqing, chief planner of the Ministry of Water Resources (MWR)

Mr. Yu Qiyang, director general of the Department of Water Resources Management of the MWR

Mr. Chen Mingzhong, director general of the Department of Rural Water and Hydropower of the MWR

Chairperson:

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

Date:

June 18, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Chen Min, vice minister of water resources, to brief you on relevant developments and to take your questions. Also present today are Mr. Wu Wenqing, chief planner of the Ministry of Water Resources (MWR); Mr. Yu Qiyang, director general of the Department of Water Resources Management of the MWR; and Mr. Chen Mingzhong, director general of the Department of Rural Water and Hydropower of the MWR. 

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

Chen Min:

Ladies and gentlemen, first of all, I would like to express my gratitude to the friends from the media and people of all walks of life for your long-term interest in and support for China's water conservancy undertakings. 

General Secretary Xi Jinping pointed out that to promote Chinese modernization, it is essential to consider water resources issues, and water conservancy modernization is an integral part of Chinese modernization. Water conservancy is a fundamental support and vital driving force for achieving high-quality development. Since the 18th National Congress of the Communist Party of China (CPC), General Secretary Xi Jinping, with a strategic vision of ensuring the sustainable development of the Chinese nation, has proposed the water management strategy of "prioritizing water conservation, balancing spatial distribution, taking systematic approaches, and giving full play to the roles of both government and market." In this way, a national "river strategy" has been formulated, drawing a grand blueprint for the country's water network. Thoroughly implementing General Secretary Xi Jinping's water management strategy and the guiding principles of his important discourses in this regard, the MWR has coordinated high-quality development with high-level security and protection, and taken a holistic approach to the management of water-related disasters, water resources, water ecology and water environment. The MWR has committed itself to deepening water conservancy reform, aiming to enhance the intrinsic motivation for high-quality development. We have constantly improved the capacities for flood and drought prevention, efficient and intensive use of water resources, optimal allocation of water resources, and ecological conservation of rivers and lakes. These reforms have been consistently integrated into our work, effectively ensuring China's security in terms of flood prevention, water supply, food and ecology. 

We have continued to put people first to ensure the utmost protection of people's lives and property. We have accelerated the improvement of the river basin flood prevention project system, rainwater monitoring and forecasting system, and flood and drought prevention system. As a result, China's overall capacity for flood and drought prevention has significantly increased, with flood losses as a percentage of GDP falling from 0.51% in the previous decade to 0.24%. In the past three years, we have successfully managed several major historic floods, including the worst autumn flood along the middle and lower reaches of the Yellow River since the founding the People's Republic of China, the "23-7" super large flood in the Haihe River Basin, and the worst flooding of the Beijiang River in the Pearl River Basin since 1915. These efforts have ensured peace for the people and social stability by maintaining the tranquility of rivers and lakes.

We have prioritized water conservation to enhance the capacity for efficient and intensive use of water resources. We have conducted the national water conservation campaign and refined related systems and polices, tightening rigid constraints on water resources. Over the past decade, while nearly doubling the GDP, China has achieved zero growth in total water consumption, maintaining it below 610 billion cubic meters. Our water consumption per 10,000 yuan of GDP and per 10,000 yuan of industrial value added have decreased by 41.7% and 55.1%, respectively. Notably, the water use efficiency of agriculture, the largest water consumer, has continuously improved, with the average water consumption per mu (around 0.07 hectare) of irrigated farmland falling to below 350 cubic meters, a reduction of nearly 13% compared with 10 years ago. As a result, the irrigated area and grain production have steadily increased while water consumption has remained stable. 

We have adhered to the principle of balancing spatial distribution to promote comprehensive improvement of water resources allocation. Focusing on networking, supplementation and chain enhancement, we have advanced the implementation of national key water network projects, as represented by the South-to-North Water Diversion Project. We have coordinated the high-quality development between regional water networks and provincial, municipal and county-level water networks, substantially intensifying the water resource support for the implementation of national strategies. Over the past decade, the newly added water supply capacity of water conservancy projects nationwide has reached around 200 billion cubic meters, three times that of the previous decade. Additionally, the irrigated farmland area has expanded by about 87 million mu, bringing the total area of effectively irrigated farmland to 1.06 billion mu. Tap water coverage in rural areas has reached 90%. 

We have always taken systematic approaches to maintaining the health and vitality of rivers and lakes to higher standards. We have emphasized harmonious coexistence between humanity and nature, and continuously taken a holistic and systematic approach to the protection and conservation of mountain, water, forest, farmland, grassland and desert ecosystems. The river chief and lake chief systems have been fully established, with 1.2 million river and lake chiefs at the provincial, municipal, county, township and village levels performing their duties. We have launched a mother river revival initiative, resulting in continuous water flow along the Beijing-Hangzhou Grand Canal for three consecutive years after a century of interruption. Beijing's mother river, the Yongding River, has seen year-round water flow throughout its entire course after 26 years of interruption. The groundwater levels in the over-extracted areas of north China have significantly risen. Over the past decade, we have managed soil erosion across 620,000 square kilometers. As a result, more rivers and lakes are experiencing increased water volumes, improved water quality and more beautiful landscapes.

We have adhered to the principle of leveraging both government and market roles, making integrated efforts to ensure law-based management systems and mechanisms for water resources. We have promulgated and implemented the Yangtze River Protection Law and the Yellow River Protection Law, as well as regulations for managing groundwater and conserving water. Moreover, we have ensured the implementation of two mechanisms: one for coordinating water resources administrative law enforcement and criminal justice and another for cooperation between water resources law enforcement and procuratorial public interest litigation. Intensified efforts have been made to enhance the overall planning, improvement, distribution, and management of river basins. We have deepened reforms of market-based trading of water use rights, water pricing, and water conservancy investment and financing systems. Moreover, an ecological product value conversion deal for soil and water conservation was signed in Anji county, Zhejiang province. China's first carbon sink trade agreement for soil and water conservation projects was signed in Changting county, Fujian province. Additionally, Sichuan province and Ningxia Hui autonomous region completed China's first cross-provincial water use rights transaction. A water conservancy investment and financing mechanism has taken shape, combining fiscal funds, government bonds, financial credit, and private capital. Investment in water conservancy facilities nationwide has surpassed 1 trillion yuan for two consecutive years.

Historic achievements and transformative changes in China's water resources management have proved that General Secretary Xi Jinping's water governance perspectives represent a correct approach to water governance that has led to significant achievements in China's practices. They have contributed to China's growing strengths, promoted the country's national rejuvenation, integrated Chinese philosophy and wisdom, pursued inclusive development for both humanity and the world, and carried both Chinese characteristics and global significance. The Chinese and English versions of "Water Governance in China – Perspectives of Xi Jinping" have elicited a positive response since their publication, contributing Chinese wisdom and solutions to address global water security challenges. 

In a new era and on a new journey, the MWR will further implement the guiding principles of the 20th CPC National Congress, and resolutely practice General Secretary Xi Jinping's water governance perspectives and important expositions on water governance. Our focus is on advancing high-quality development in the water sector and enhancing the ability to safeguard water security for building a great modern socialist country in all respects and achieving national rejuvenation through the Chinese path to modernization. 

That's all for my introduction. I will now answer questions from journalists. Thank you.

Shou Xiaoli:

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

Economic Daily:

The Outline of the National Water Network Construction Plan has been in place for over a year now. What progress has been made in building this network? How has it benefited people's daily lives? Thank you.

Chen Min:

This is indeed an issue of great concern to many. I'll now invite Mr. Wu to address your questions.

Wu Wenqing:

Thank you for your interest in the construction of our national water network. Since the CPC Central Committee set major strategic arrangements to accelerate the construction of the national water network, the MWR has focused on the following targets. We aim to create a well-developed system that is safe and reliable, intensively and efficiently managed, green and intelligent. This system must also feature smooth circulation and orderly regulation and control. Intensified efforts have been made to advance the building of the national water network. This aims to ensure the country's water security more broadly and at a higher level, while providing strong support for promoting high-quality development and enhancing people's well-being.

First, we have expedited the improvement of the core framework and vital arteries of the national water network. The first phase of the eastern and middle routes of the South-to-North Water Diversion Project have cumulatively transferred more than 72.9 billion cubic meters of water. This has become an important water source for 44 large- and medium-sized cities along the routes, benefiting 176 million people. For example, the middle route provides water for over 75% of Beijing's population and almost 100% of urban Tianjin. We've also stepped up efforts to promote the high-quality development of follow-up projects. Construction has begun on the middle route project to channel water from the Yangtze River to the Hanjiang River. We're also expediting the groundwork for the western route and follow-up projects for the eastern route. Furthermore, we will establish a water source security and quality system for the middle route. We'll intensify efforts to protect water sources and ensure that water transferred from south to north remains clean.

Second, we have bolstered the construction of key national water network projects. Since 2022, several mega cross-basin and cross-regional water transfer projects have been completed and put into operation. These include water diversion projects from the Yangtze River to the Huaihe River, from the Hanjiang River to the Weihe River, and water resource allocation projects in the Pearl River Delta. We've begun construction on several major projects, such as the Beibu Gulf Rim water resources allocation project and key water network projects in Jilin province. Moreover, we have started building 26 major large-scale water management projects. These include the Linhai Reservoir in Heilongjiang province, Xiangyang Reservoir in Chongqing municipality, Taoyuan Reservoir in Yunnan province, Changtang Reservoir in Guangxi Zhuang autonomous region, and Huatanzi Reservoir in Guizhou province. These projects will provide a solid foundation for water security during the implementation of major national strategies. These include the development of the western region, the rise of the central region, the comprehensive revitalization of northeast China, the integrated development of the Yangtze River Delta, and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area. They will also promote the optimization and adjustment of population density, economic layout, and territorial space utilization patterns.

Third, we have coordinated the planning and development of water networks at the provincial, city and county levels. To date, all provincial-level water network development plans have been approved and implemented, while 72% of city-level and 40% of county-level plans have been formulated. The MWR has initiated the construction of water network pilot areas at the provincial, city, and county levels, fully leveraging the role of pilot areas in boosting the development of water networks at all levels by actively drawing from local experience. At the same time, we have enhanced collaboration and integration of water networks at all levels and strengthened the coordinated development of water networks and related industries. We've also developed digital twin water networks and accelerated the development of a national water network system. This system aims to integrate urban and rural areas and improve interconnectivity. By doing so, we have bolstered the high-quality development of our economy and society while continuing to improve the well-being of our people.

Nanfang Daily, Nanfang Plus:

In recent years, global and regional climate change has become increasingly extreme, exerting great pressure on flood and drought prevention efforts. Could you outline the measures the MWR has implemented to prevent flood and drought disasters? Thank you.

Chen Min:

In recent years, extreme weather events have occurred frequently. Flood and drought disasters have grown more unpredictable and sudden. The MWR has acted on the principles proposed by General Secretary Xi Jinping on disaster prevention, mitigation and relief. Specifically, this means giving priority to disaster prevention while combining prevention, response and relief efforts; integrating routine disaster reduction with emergency disaster relief; shifting the focus from post-disaster relief to pre-disaster prevention; transforming our approach from responding to single disasters to comprehensive disaster reduction; and changing our strategy from reducing disaster losses to mitigating disaster risks. To achieve these goals, the ministry has focused its efforts on three areas:

In terms of the river basin flood prevention project system, we have actively promoted the construction of reservoirs, river channels, levees, and flood storage areas. Some of our key flood control projects include reservoirs like Yaojiaping in the Yangtze River Basin, Dongzhuang in the Yellow River Basin, and Datengxia in the Pearl River Basin. We've also focused on flood control in the lower reach of the Yellow River and along the Wusong River near Taihu Lake, as well as the construction of the Phase II of the Huaihe River sea channel and national flood storage and detention areas. Additionally, we've implemented large-scale projects to harness small- and medium-sized rivers, reinforce dilapidated reservoirs, and prevent and control mountain floods. Over the past decade, we've increased storage capacity by 163.2 billion cubic meters and added about 60,000 kilometers of grade 5 or higher levees. Over the past two years, we've made significant progress in constructing key levees along the main channels of major rivers and lakes, ensuring they meet the required standards. As a result, all levees around Taihu Lake meet the required standards, and all those along the Liaohe River's main channel will meet these standards within this year.

In terms of rainfall and water condition monitoring and forecasting systems, we have accelerated the construction of "three lines of defense" comprising weather satellites and rain radars, rainfall stations, and hydrological stations, to ensure both longer flood forecast periods and higher accuracy. We have established a modernized system for rainfall and water condition monitoring and forecasting in the Guanting Valley section of the Yongding River, which is the first of its kind to consider the river basin as a unit. The number of all types of hydrological stations across the country has increased from over 70,000 in 2012 to more than 120,000 at present. Monitoring and early warning platforms for mountain flood disasters have been set up in 2,076 counties and districts with disaster prevention and control responsibilities. Water condition monitoring and forecasting capabilities have continuously improved, with the accuracy of flood forecasting for major rivers rising to over 90% in the south and over 70% in the north.

In terms of the disaster prevention and control system, we have consistently focused on the following goals: no casualties, no dam failures at reservoirs, no breaches of important levees, and no impacts on critical infrastructure. Additionally, we guarantee the safety of urban and rural water supplies. We have coordinated responses to storms, floods, dangers and disasters. We have also enhanced forecasting, early warning, disaster drills and preparedness. We have strictly performed our functions in flood prevention and drought relief according to the law, taken thorough actions to identify and address risks and potential dangers, updated various response plans on a rolling basis, and strengthened the unified coordination of water conservancy projects in river basins. By doing so, we have effectively responded to major floods and severe droughts. This year, the Beijiang River in the Pearl River Basin experienced an exceptionally large and early flood compared to previous years. Through effective prediction and forecasting of water conditions and scientific coordination of flood prevention projects, we greatly alleviated the severe flood situation in the Beijiang River. This ensured flood safety for key protected areas in the Guangdong-Hong Kong-Macao Greater Bay Area.

Next, the ministry will stay prepared to deal with worst-case and extreme scenarios and accelerate the construction of a safe and reliable system to protect against floods and droughts, steadfastly safeguarding the bottom line of safety.

Thank you.

BRTV:

In recent years, the environment of our rivers and lakes has been improving. As a result, people have more places to enjoy water-related activities. What has the MWR done to improve the environment of rivers and lakes? What areas will the ministry focus on in its next steps? Thank you.

Chen Min:

These questions will be answered by Mr. Yu from the Department of Water Resources Management of the MWR.

Yu Qiyang:

Thank you for your question. The ecological environment of rivers and lakes is of great concern to everyone, as it's closely related to economic and social development and directly impacts people's quality of life. The MWR places great importance on protecting the ecological environment of rivers and lakes. We adhere to the concept of harmonious coexistence between humans and nature, continuously deepening our approach to river ethics. We consistently view rivers as living entities and focus on adjusting values, moral standards, responsibilities and behavioral norms concerning the relationship between humans and rivers. We have vigorously promoted the ecological restoration of rivers and lakes, resulting in significant improvements in the condition of our country's rivers and lakes.

We have made further efforts to revitalize our mother rivers. As everyone knows, the Yangtze River and Yellow River are our nation’s mother rivers, and each region has its own mother river. However, economic and social development, global climate change, and natural endowment constraints have led to rivers running dry and lakes shrinking and drying up in many regions. To address these challenges, we have implemented a series of measures to restore and protect the ecological environment of our rivers and lakes. First of all, we initiated a nationwide restoration project focusing on 88 mother rivers and lakes (79 rivers and 9 lakes) across various regions. For each river and lake, we implemented protection and restoration measures through "one river, one policy" and "one lake, one policy" approaches. These measures include ecological water replenishment, optimizing water resource scheduling and comprehensive management. For example, since 2018, we have continuously carried out ecological water replenishment actions in north China. Since 2022, we have continuously implemented water replenishment actions for the Beijing-Hangzhou Grand Canal. These actions have increased the length of rivers with water and the area of rivers and lakes with water, achieving positive results. Of the 88 mother rivers and lakes, 56 rivers have achieved full-length flow at least once, while restoration efforts on other rivers continue to show progress. All nine lakes have either reached their ecological water level targets or met their water replenishment goals. As Mr. Chen mentioned earlier, Beijing's mother river, the Yongding River, which had been cut off for 26 years, has now flowed its full length for four consecutive years. The Beijing-Hangzhou Grand Canal, which had been cut off for 100 years, has achieved full-length flow for three consecutive years, achieving positive results.

The second measure is to effectively ensure ecological water flow in rivers and lakes. Ecological flow is an important indicator of the degree of ecological water protection for rivers and lakes. To this end, we have comprehensively strengthened the management of ecological flow. Since 2020, we've established ecological flow targets for 171 major interprovincial rivers and 546 provincial rivers and lakes, implementing regulatory measures to ensure these goals are met. Currently, a comprehensive ecological flow guarantee system for important interprovincial rivers has been established nationwide, significantly improving the degree of ecological water protection for rivers and lakes. Monitoring indicates that over 90% of rivers consistently meet their ecological flow targets, effectively safeguarding the water ecosystems of rivers and lakes. Among other important rivers and lakes, the Yellow River has flowed uninterrupted for 24 years, while the East Juyan Lake at the Heihe River's end has maintained water for 19 consecutive years. This is quite remarkable.

The third measure focuses on intensifying efforts to treat groundwater overextraction. In recent years, we have continuously strengthened the dynamic monitoring and management of groundwater. For key areas and issues, the MWR, together with relevant ministries, has continuously carried out rectification actions. For example, in water receiving areas of the first phase of the eastern and middle routes of the South-to-North Water Diversion Project, diverted water was used to reduce ground water extraction. In north China, two groundwater overextraction treatment actions have been implemented, targeting 10 key areas, including the Sanjiang Plain and the Huang-Huai Plain. The main measures include water saving and controlling to reduce groundwater use, replacing groundwater extraction with surface water, and optimizing water resource allocation and scheduling. The results have been significant. For example, north China, especially in the Beijing-Tianjin-Hebei region, saw significant groundwater recovery in 2023. Compared to 2020 levels, shallow groundwater rose by an average of 2.71 meters, while deep confined groundwater increased by 6.42 meters.

Moving forward, the MWR will continue to intensify the protection and restoration of rivers and lakes. We will firmly promote the revival actions of mother rivers, strengthen comprehensive treatment of groundwater overextraction, enhance the optimization and unified scheduling of water resources, continuously implement ecological water replenishment for rivers and lakes, improve the guaranteed degree of ecological flow, and promote the continuous improvement of the ecological environment of rivers and lakes.

Thank you.

CCTV:

Over the past seven years of implementing the river chief system, what measures has the MWR taken, and what progress has been made? How have the conditions of the rivers and lakes changed? Thank you.

Chen Min:

I will take this question. First, I would like to thank you for your interest in the river chief system, which is a major institutional innovation. Over the past seven years since the implementation of the system, the MWR has taken a series of measures and achieved significant results.

We achieved results in building a system of responsibility. The system of responsibility resting with the Party and government officials is the cornerstone of the river chief responsibility system. The 31 provincial-level river chiefs are mainly figures from Party committees and government. Over 1.2 million river and lake chiefs have been appointed across the five tiers of province, city, county, township and village to ensure that every river is under management. A dynamic adjustment and responsibility replacement mechanism has been established to ensure the continuous accountability of river chiefs. 

We made progress in terms of improving the working mechanisms. Provincial-level river chief joint conference mechanisms have been established for the seven basins of the Yangtze River, Yellow River, Huai River, Hai River, Pearl River, Songhua River-Liaohe River and Taihu Lake, coordinating joint prevention, control and treatment efforts upstream and downstream, on both sides of the rivers, as well as the main streams and tributaries. The "river chief plus police chief" and "river chief plus prosecutor" mechanisms have been effectively utilized to strengthen the connection between water administration enforcement and criminal justice, and to collaborate with public interest litigation by prosecutors, thereby addressing key issues in water administration enforcement.

We yielded results in advancing protection and management. The advantages of the river chief system have been fully leveraged to tackle issues with rivers and lakes. Over 240,000 cases of illegal occupation, mining, piling and construction have been addressed. Illegal constructions of 146 million square meters have been demolished, 98 million metric tons of garbage cleared, and over 18,000 illegal sand dredging ships dealt with. Various specialized actions for river and lake protection have been carried out, such as the Yangtze River shoreline utilization cleanup project, restoring 162 kilometers of the Yangtze's shoreline, and greening 12.25 million square meters. The specialized management of Danjiangkou Reservoir has restored 14.48 million cubic meters of flood control capacity and removed 24,400 square meters of net cages.

We delivered results in creating "happy" rivers and lakes. Happy rivers and lakes refer to modern rivers and lakes that meet the requirements of high-quality development in the new era — safe, clean, healthy, ecologically livable, harmonious, prosperous and beneficial to the people. So far, more than 9,800 health assessments on rivers and lakes have been completed, and health records have been established. In cooperation with the Ministry of Finance, support has been provided for 62 happy river and lake construction projects, leading to the creation of over 3,200 such rivers and lakes nationwide. As a result, the rivers and lakes around the people now flow more smoothly, and are cleaner, greener and more beautiful, enhancing the sense of gain, happiness and security.

Thank you. 

Phoenix TV:

My concern is regarding water supply issues in rural areas. Rural water supply is closely related to rural production and life. In recent years, the MWR has taken many measures to promote high-quality development of the rural water supply. Could you please elaborate on this? Thank you.

Chen Min:

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

Chen Mingzhong:

Rural water supply is closely related to the production and lives of rural residents. In recent years, the MWR has advanced high-quality development of the rural water supply, released guidelines on promoting high-quality development of the rural water supply, and clearly outlined the development path and next steps. The path involves implementing the "3+1" standardized construction and management model. The "3" refers to prioritizing urban-rural integrated water supply, scaling up centralized water supply, and standardizing and renovating small-scale water supply projects according to local conditions. The "1" refers to prioritizing project management and promoting county-level unified management. In May, the MWR held an on-site meeting in Guyuan, Ningxia, to deploy this work across the region. 

First, we prioritized advancing the integration of urban and rural water supplies. We confirmed that by leveraging existing major water resources and main connected pipeline networks, particularly along large water diversion projects and around large and medium-sized reservoirs, especially in the suburbs of cities, the goal is to connect, expand and merge networks wherever possible. Many regions nationwide have made significant progress in the urban-rural integrated water supply. For example, Shanghai and Jiangsu achieved urban-rural integrated water supply, and even Guyuan in Ningxia, once known for its water scarcity and poverty, has achieved urban-rural integrated water supply, with the same source, network, quality, regulation and service covering both urban and rural areas.

Second, we will vigorously promote the scaling-up of centralized water supply. In areas where it is difficult to extend coverage of urban pipelines, we will adhere to the principles of "building large, merging medium and reducing small systems" to develop centralized water supply on a larger scale. "Building large" refers to constructing rural water supply projects that can provide for more than 10,000 people and handle over 1,000 metric tons of water daily. "Merging medium" refers to encouraging the networking, connection, alignment and combination of medium-sized centralized water supply projects. "Reducing small" involves downsizing small-scale and decentralized water supply systems. In densely populated townships, we aim to plan and build large-scale water supply projects capable of providing for over 10,000 people and handling over 1,000 metric tons of water daily, using these as hubs to extend services to scattered users, thereby maximizing the reach of the large-scale water supply. For areas where large-scale projects are not feasible, we will implement standardized construction and renovation of small water supply systems. For remote and sparsely populated areas that cannot be integrated into larger systems, we will promote standardized construction tailored to local conditions, ensuring no household or individual is left out. The MWR has issued standards and norms for the standardized construction of small water supply projects, which include a set of standardized procedures and models to guide these renovations. For instance, as Zhejiang province has many mountainous areas and a relatively dispersed population, it initiated the renovation of 8,828 single-village water stations, transforming them into standardized systems to ensure no village or individual is left behind, thus achieving the goal of uniform water quality across urban and rural areas.

Finally, we will promote county-level unified management of the rural water supply. Using counties as units, we will select professional organizations to establish and improve specialized rural water supply management platforms, achieving unified management, monitoring, operations and services within each county, to ensure that professional management achieves full coverage. These efforts have produced significant results over the past few years. A total of 72.8 billion yuan has been allocated for construction of rural water supply projects this year, with over 3,500 projects completed, thereby improving the water supply security for 17.51 million rural residents. The coverage rate of tap water in rural areas has surpassed 90%, up by 10 percentage points compared to 10 years ago, providing more than 100 million additional rural residents with access to tap water. Going forward, we will continue to promote this progress following the "3+1" model, continuously enhancing the high-quality development of the rural water supply.

Thank you.

21st Century Business Herald:

Investment in water conservancy construction has exceeded 1 trillion yuan for the past two years. What is the situation regarding water conservancy investment this year? And what measures will be taken to maintain the scale of water conservancy investment and raise funds in the sector? Thank you.

Chen Min:

This is a very good question, and one that has attracted considerable public attention. I would like to invite Mr. Wu to answer.

Wu Wenqing:

Thank you for your interest in water conservancy construction. In the past two years, water conservancy investment has been continuously strengthened. In 2023, investment in water conservancy construction reached 1.1996 trillion yuan, setting a new record, and having surpassed the 1-trillion-yuan mark for the first time in 2022. Since the beginning of this year, the national water conservancy system has focused on post-disaster reconstruction and made every effort to promote the construction of water conservancy infrastructure. From January to May, both construction investment and project implementation exceeded the levels of the same period last year.

In terms of investment implementation, a total of 924.6 billion yuan has been invested in water conservancy construction nationwide, an increase of 274.3 billion yuan and up by 42% year on year. A total of 26 provinces have invested more than 10 billion yuan each, among which Hebei, Zhejiang, Guangdong, Sichuan, Hubei, Beijing, Anhui and Henan have each invested more than 40 billion yuan, strongly guaranteeing the demand for large-scale water conservancy construction funds.

In terms of investment completion, a total of 421.3 billion yuan has been invested in water conservancy construction nationwide, an increase of 17 billion yuan and up by 4.2% year on year. Among these, Guangdong and Hebei have each invested more than 30 billion yuan, and Zhejiang, Shandong, Fujian, Sichuan, Anhui and 11 other provinces have each invested more than 10 billion yuan. Funds for water conservancy projects from the additional issuance of national bonds have reached 147.6 billion yuan. The construction of water conservancy projects has created 1.295 million jobs, up by 7.2% year on year, among which 1.038 million rural laborers have been employed, up by 16% year on year, effectively playing a crucial role in stabilizing growth and employment.

In terms of project implementation, 34,000 water conservancy projects have been implemented nationwide, up by 22.5% year on year. Among these, 1,340 new water conservancy projects with a total investment of over 100 million yuan have started construction, up by 52% year on year.

This year, the tasks for water conservancy construction are serious and the demand for investment is large. Next, the MWR will guide local departments and project entities to adhere to a two-pronged approach. This means that while making good use of the additional issuance of national bonds, we will continue to strive for special local government bonds, bank loans and social capital investments. On the basis of ensuring quality and safety, we will accelerate project construction, create more tangible work output, further strengthen the foundation of water security, and make contributions to consolidating and enhancing the trend of economic recovery and improvement.

The Paper.cn:

Large - and medium-sized irrigation areas play a crucial role in ensuring national food security. What progress has the MWR made in the construction and renovation of these irrigation areas ? Thank you.

Chen Min:

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

Chen Mingzhong:

Thank you for your question and concern. Grain production, with farmland as the fundamental element, is supported by water conservancy systems. As just mentioned by the journalist, large- and medium-sized irrigation areas play a crucial role in ensuring national food security. The MWR attaches great importance to the construction and transformation of large- and medium-sized irrigation areas and continues to strengthen and expand water conservancy infrastructure to support food security. This is evident in the following aspects:

First, we are continuously improving irrigation and drainage systems and effectively increasing irrigated areas. We have been promoting the development and renovation of irrigated zones for two to three decades. By the end of the 14th Five-Year Plan period (2021-2025), 200 billion yuan from central budget will have been allocated to modernize and upgrade more than 2,500 large- and medium-sized irrigation areas, further enhancing the irrigation and drainage system. The size of our irrigated farmland has increased by more than 87 million mu (5.8 million hectares) compared with 10 years ago, equivalent to eight Dujiangyan irrigation areas. The total irrigated farmland area has reached 1.055 billion mu, producing 77% of China's grain and more than 90% of its cash crops.

Second, we are vigorously promoting agricultural water-saving irrigation and continuously enhancing agricultural water use efficiency. In China, agriculture accounts for 62% of total water consumption, making it the sector with the greatest potential for water conservation. The MWR insists on prioritizing water conservation, planning land use based on water resource availability, strengthening the permit system for water withdrawal, strictly managing total water usage and quotas, and vigorously upgrading water-saving facilities in irrigation areas. We are promoting water conservation through engineering improvements and better management practices. By the end of 2023, the effective utilization coefficient of farmland irrigation water in China had reached 0.576. This represents an annual water-saving capacity increase of approximately 30 billion cubic meters compared with 10 years ago.

Third, we are improving management efficiency through reform and technology. We are focusing on comprehensive reform of agricultural water pricing as a key strategy. Through this, we are innovating investment and financing systems in irrigation areas and promoting the modernization of these areas. The National Development and Reform Commission, together with the MWR and several other departments, have jointly promoted the comprehensive reform of the pricing for water used in agriculture. At present, the reform covers more than 900 million mu of irrigated farmland. The MWR has made significant progress through these reforms in achieving modern management of irrigation areas. Last year, we launched 21 pilot projects, and this year, we've initiated a second batch of pilot projects. We've implemented a two-pronged funding approach to provide tailored policy support for various irrigation areas which feature surface irrigation, high-lift irrigation from the Yellow River or groundwater irrigation, as well as for areas growing grain or cash crops. In addition to central funds, we widely attracted social capital, some bonds, and bank loans to invest in the modernization of irrigation areas. These 21 pilot projects attracted 7.2 billion yuan of investment last year, of which financial and social capital accounted for 80%. With sufficient funding, the development of irrigation areas was promoted in accordance with the standards of modernization. At the same time, we've selected 49 irrigation areas to pioneer the implementation of digital twin technology. Through the development of digital twin pilot projects, irrigation has become more precise and efficient, significantly improving the level of intelligent management. As a result, this year's spring irrigation water supply cycle has been significantly shortened, and overall irrigation efficiency has increased by more than 10%.

Moving forward, we plan to develop and upgrade several water-saving and ecologically friendly irrigation zones, providing strong water conservancy support to ensure national food security.

Thank you.

Cover News:

The MWR is vigorously promoting the construction of a digital twin system for water resource management. What is the current progress? What role does this work play? Thank you.

Chen Min:

As you said, the MWR is vigorously promoting the development of the digital twin water resource management system. We view this as an important pathway for cultivating new quality productive forces and promoting high-quality development in water conservancy. By combining cutting-edge technologies such as big data, cloud computing, and artificial intelligence with water resource management, we're creating real-time digital maps of rivers, lakes, and water conservancy projects. This provides a smart "brain" for water management tasks, enabling accurate forecasts, early warnings, rapid simulations, and emergency planning for flood prevention and control and water resource management. Over the past three years, we've been developing digital twins for river basins, water networks, and water resource management projects.

In terms of digital twin river basins, we accelerated the establishment of digital twin platforms for the MWR and seven major rivers including the Yangtze River, the Yellow River and the Huaihe River, to support flood control management in these river basins. For example, during the "23-7" super large flood in the Haihe River Basin last year, we comprehensively utilized meteorological, hydrological and hydrodynamic models to simulate the runoff yield and flood routing in advance, so the Yongding River flooding was accurately forecasted, and preparations were made for the opening of Dongdian and other flood detention and storage areas three days in advance.

Regarding digital twin water networks, we have enhanced the capacity of water resource allocation by building the middle route of the South-North Water Diversion Project as well as seven provincial-level water network monitoring and dispatching platforms. For example, through electronic fences and a remote control system, we conduct real-time monitoring of more than 1,300 kilometers of channels along the middle route of the South-North Water Diversion Project, and accurately adjust and control more than 60 sluice gates to ensure the security of the project, water supply and water quality. In addition, the digital twin of the water diversion project in eastern Zhejiang province has realized dynamic analysis of the regional water resource situation for the coming 15 days, ensuring a clean water environment and a sound aquatic ecosystem for the Hangzhou Asian Games.

As for digital twin projects, we have built a number of digital twin systems of key water conservancy projects, improving the level of project operation and management. For example, to establish the digital twin Three Gorges project, we advanced simultaneous interactive images for the physical project and its digital twin project, effectively boosting the comprehensive management capacity of the Three Gorges project and delivering more benefits. As mentioned earlier by Mr. Chen, digital twin irrigation areas are also a practical effect of the application in the field of digital twin engineering.

Thank you.

Shou Xiaoli:

Two more journalists have their hands raised. These will be the last two questions.

National Business Daily:

In recent years, both the area and intensity of water and soil erosion in China have continued a downward trend. What measures have been taken in water and soil conservation and what plans do you have for the future? Thank you.

Chen Min:

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

Chen Mingzhong:

Thank you for your interest in water and soil conservation. Last year, the general offices of the CPC Central Committee and the State Council issued opinions on strengthening water and soil conservation in the new era, clarifying relevant work requirements. Over the past year, the MWR has thoroughly implemented the opinions and requirements, and achieved remarkable results in conserving water and soil resources. As the reporter just mentioned, the achievements can be manifested in two sets of data in 2023. One is that the area of water and soil erosion decreased to 2.6276 million square kilometers, and the other is that the water and soil conservation rate jumped to 72.56%. Our efforts have played an important role in conserving water sources, reducing sediment and non-point source pollution, as well as boosting the carbon sink capacity of the ecosystem, while enriching the public's sense of gain, happiness and security.

Regarding the system and mechanism for water and soil protection, we have subdivided the targets of water and soil conservation rate between different counties, and established a four-level target system at the national, provincial, municipal and county levels. River basin authorities have established a mechanism for joint prevention, control and treatment of water and soil erosion. Twenty-seven provinces have established a mechanism of joint conferences on water and soil conservation. A network on water and soil protection has been established under the leadership of the Party committee, with the government taking charge, various departments working together, and the whole society participating. 

In terms of supervising human-induced water and soil loss, we have revised and issued measures for the management of water and soil conservation plans for production and construction projects. We have also issued relevant standards for spatial control of water and soil conservation, credit evaluation, and guidelines for the prevention and control of water and soil erosion in agricultural and forestry development activities. We promoted the establishment of a new regulatory mechanism with remote sensing supervision as the basic approach, key supervision as the supplement and credit supervision as the basis. We examined and approved 115,000 plans for water and soil conservation in production and construction projects in accordance with the law. Additionally, 13,300 illegal projects were investigated and handled according to the law, and 1,345 were dealt with through filing cases. New human-induced soil erosion has been effectively controlled.

In terms of key areas for soil erosion control, the focus is on the upper and middle reaches of major rivers, the black soil region of northeast China, and the karst areas of southwest China. Using small watersheds as units, we've implemented comprehensive and systematic management. This has effectively improved the prevention and control of soil erosion in key areas covering 32,000 square kilometers, creating 505 eco-friendly small watersheds. This has enriched agricultural production conditions and the rural living environment, and increased the supply of high-quality ecosystem goods and services.

Regarding the improvement of management capabilities and standards, a comprehensive and coordinated system of soil and water conservation planning at the national, basin and provincial levels has been improved. We have been accelerating the construction of a reasonably structured and fully functional soil and water conservation monitoring system. New breakthroughs have also been made to realize the market value of ecosystem goods and services from soil and water conservation. As Mr. Chen mentioned, successful carbon-sink trading was conducted at the soil and water conservation project in Changting, Fujian province. Meanwhile, a successful contract was signed to convert the market value of ecosystem goods and services from soil and water conservation in Anji, Zhejiang province. The policies and systems for carbon absorption standards and realizing the market value of ecosystem goods and services are gradually improving. Further efforts have been made to strengthen the academic discipline construction, monitoring,, promotion of information technology, and standard system work related to soil and water conservation.

In the next step, the MWR will fully implement the relevant decisions and plans of the Party Central Committee and the State Council. We will focus on prevention and protection to control new issues, comprehensive treatment to reduce existing problems, and strengthened management to improve quality. These efforts aim to enhance soil and water conservation and increase the supply of ecosystem goods and services, supporting harmony between humanity and nature.

Thank you.

Shou Xiaoli:

One last question.

CNR:

On May 1 this year, China unveiled regulations on water conservation, the first of its kind in the country. May I ask what measures the MWR has taken to promote the conservation and efficient use of water resources? Thank you.

Chen Min:

I would like to invite Mr. Yu from the Department of Water Resources Management to answer this question.

Yu Qiyang:

Thank you for the question. China has a large population but limited water resources, with low per capita water availability. Relative water scarcity is a fundamental issue in China. Therefore, improving water use efficiency and promoting water conservation are crucial for achieving high-quality development. In terms of managing and using water resources, we mainly take the following measures.

First, we adhere to the dual control of regional water use volume and intensity. We control the total volume of water used in regions and have established a water use volume control index system covering provincial, municipal, and county-level administrative regions. This ensures that the national total water use volume will be controlled within 640 billion cubic meters by the end of the 14th Five-Year Plan period. We also control water use intensity and have formulated water quota standards for different industries. A national water quota standard system has been established covering over 80% of all water use.

Second, we strictly manage water abstraction and use. Water abstraction directly from rivers, lakes, and underground sources in China is subject to water abstraction licensing management. We have comprehensively implemented electronic license management for water abstraction permits to ensure scientific, convenient, and efficient management. So far, 630,000 such electronic licenses have been issued. This means that information on any legitimate and compliant water abstraction that requires a license can be accessed online. To strengthen the management of water abstraction and use, we launched a three-year initiative starting in 2020 to crack down on water abstraction and use that violated regulations. This initiative has clarified the situation of various water intakes nationwide and addressed a series of issues related to unlawful water abstraction. At the same time, we have accelerated the construction of a water abstraction monitoring and measurement system, with the online measurement rate of water abstraction above the designated scale nationwide reaching 88%.

Third, we strengthen the implementation of water-saving measures. We have deeply implemented the national water conservation action, promoting a joint effort among various departments. We continuously encourage water conservation in key areas by improving water-saving and efficiency in agriculture, reducing water use and emissions in industry, and cutting water waste in urban areas. We also enhance the utilization of unconventional water sources, achieving relatively good results. Currently, the leakage rate of urban public water supply networks has dropped to below 10%, and the annual utilization of non-traditional water sources has reached 21.23 billion cubic meters.

Going forward, the MWR will work with relevant departments to fully implement regulations on water conservation, accelerate the implementation of the rigid regulation system for water resources, improve the water resources monitoring and measurement system, strengthen the supervision and management of water abstraction and use, accelerate the implementation of water-saving measures, encourage and support the development of water-saving industries, and further enhance the level of water resources conservation and intensive utilization. These efforts ensure that limited water resources can better support high-quality development.

Thank you.

Shou Xiaoli:

Thank you to Mr. Chen, all the other speakers, and the journalists present. Today's press briefing will conclude here. Goodbye.

Translated and edited by Xu Xiaoxuan, Wang Qian, Gong Yingchun, Huang Shan, Li Xiao, Zhou Jing, Liu Caiyi, Yuan Fang, Liu Jianing, Li Huiru, Mi Xingang, Ma Yujia, Yan Bin, Zhang Junmian, Zhang Tingting, Wang Wei, Wang Ziteng, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers:

Mr. Li Bingjun, deputy secretary of the Communist Party of China (CPC) Guizhou Provincial Committee and governor of Guizhou province

Ms. Zhang Jingping, vice governor of Guizhou province

Mr. Luo Qiang, vice governor of Guizhou province

Mr. Qiu Zhenguo, director of the Guizhou Provincial Development and Reform Commission 

Chairperson:

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

Date:

June 14, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 31st press conference in the series "Promoting High-Quality Development." Today, we are pleased to be joined by Mr. Li Bingjun, deputy secretary of the Communist Party of China (CPC) Guizhou Provincial Committee and governor of Guizhou province, who will brief you on promoting high-quality development and building a thriving economy, better living standards and sound eco-environment in Guizhou, and answer your questions. Also present today are Ms. Zhang Jingping, vice governor of Guizhou province; Mr. Luo Qiang, vice governor of Guizhou province; and Mr. Qiu Zhenguo, director of the Guizhou Provincial Development and Reform Commission.

Li Bingjun:

Good morning, everyone. I am delighted to have this opportunity to share with you the progress of Guizhou's high-quality development. Thank you for your interest in and support for Guizhou.

Guizhou, with its beautiful mountains and rivers, pleasant climate, abundant resources and hardworking people, is a dazzling pearl in southwestern China. Once, Guizhou was characterized by its rugged terrain and extremely inconvenient transportation. Now, with countless bridges spanning its landscape, it is well-connected in all directions. Once, Guizhou was one of the poorest regions in the country. Today, the fight against poverty has transformed its impoverished and backward appearance, and it is embarking on a new journey of high-quality development.

In February 2021, General Secretary Xi Jinping visited Guizhou and urged us to prioritize high-quality development in all aspects. He entrusted us with the important mission of pioneering new paths in boosting the development of China's western region in the new era, and blazing new trails in rural revitalization, the development of the digital economy, and eco-environmental conservation. In recent years, we have shifted our focus from consolidating poverty alleviation achievements to promoting high-quality development. To fulfill our important mission, we are steadfastly pursuing new industrialization, new urbanization, agricultural modernization, and tourism industrialization. While consolidating our poverty alleviation achievements, we have accelerated the transformation of our growth model, moving away from an investment-driven growth model. By finding our position in the new development pattern, we have effectively pursued higher-quality economic growth and appropriately increased economic output. Our economic aggregate has reached a new milestone of 2 trillion yuan ($275.18 billion), with high-quality development becoming the main theme of Guizhou.

In recent years, we have continued to consolidate and expand our poverty alleviation achievements and carry forward rural revitalization. We are committed to increasing rural residents' incomes, with rural per capita income growth consistently outpacing that of urban residents and the overall economic growth rate. We have maintained the bottom line of preventing large-scale return to poverty. We are dedicated to developing rural industries, and now, tea gardens, orchards, fields and forests can be found all over the province. Guizhou's distinctive industries and non-timber forest-based economy are also rapidly developing. "Lao Gan Ma" chili sauce, among other brands, has been sold worldwide. The tea grown in our misty mountains is clean, healthy and naturally pollution-free. Our green and black teas are well-received in the market, and our matcha is exported to over 40 countries. We are committed to improving the rural environment, learning from the Green Rural Revival Program, and accelerating the construction of livable, business-friendly and beautiful rural areas. The lives of our people are more convenient, and the rural environment is more beautiful, with mountains and rivers visible everywhere.

In recent years, we have utilized our natural resources to build a modern industrial system. Guizhou is the only province in the country without plains, yet it is rich in mineral resources, with reserves of 49 types of minerals all ranking among the top 10 nationwide. In recent years, leveraging our resources, we have vigorously promoted "efficient mining," which means accurately identifying, effectively exploring and efficiently using our mineral resources. We are accelerating the construction of a modern industrial system that reflects local features and holds a significant position in the national industrial layout. Guizhou has focused on developing six major industrial clusters at the provincial level, with each city and county developing their own leading industries. Our industrial sector has contributed 43.8% to economic growth, becoming the primary driving force for development. Meanwhile, we have been actively promoting the quality enhancement of distinctive mountain agriculture and tourism, and the core structure of Guizhou's modern industrial system has begun to take shape.

In recent years, we have dedicated ourselves to protecting Guizhou's lush mountains and clear waters. Here, I'd like to share an interesting story. In the main urban area of Guiyang city, there is a place called Qianling Mountain. It boasts an excellent ecological environment and dense green forests. Thousands of wild macaques live there, and tens of thousands of birds roost there. Every day, 30,000 to 40,000 residents and tourists come here for leisure and sightseeing. Some residents have even formed bonds and friendships with the macaques, vividly illustrating the harmonious coexistence between the people of Guizhou and nature. In recent years, we have continued to strengthen ecological protection and restoration. The forest coverage rate across the province has reached 63%. Guizhou boasts the highest number of World Natural Heritage sites in the country, ranking third nationally in terms of the variety of plant and animal species. The air quality in the province's major cities remains excellent, and the water quality at the boundaries of its major rivers is also outstanding. Each year, Guizhou provides over 100 billion cubic meters of high-quality water to the Yangtze and Pearl rivers. It can be said that Guizhou's beautiful mountains, rivers, and landscapes, along with its fine liquor, tea and quality of life, make it an ideal place for nurturing the body, mind and health.

Over the years, we have strived to make the lives of our people increasingly happier. We have consistently increased our input in projects related to people's wellbeing, dedicating nearly 70% of our fiscal spending to this cause every year. Last year, we added 186,200 school places of various types. Five regional medical centers at the national level began operation, and the medical system at the provincial, city, county, township and village levels was rapidly improved. Guizhou's educational and medical conditions are improving at an accelerated pace. We are making great efforts to build Guizhou into a model province for fostering a strong sense of community for the Chinese nation, resulting in greater unity and harmony among all ethnic groups in Guizhou.

Today, Guizhou is making every effort to write its chapter in pursuing Chinese modernization, aiming for economic prosperity, improved living standards, and a beautiful ecology. 

That's all for my introduction. Thank you.

Shou Xiaoli: 

Thank you for the introduction, Governor Li. Now, let's proceed to the Q&A session. Before asking a question, please state the news organization you represent.

Phoenix TV:

Earlier, Mr. Li mentioned that Guizhou has abundant mineral resources, with reserves of 49 types of minerals ranking in the top 10 nationally. How does Guizhou leverage these mineral resources to build a distinctive modern industrial system? Thank you.

Li Bingjun: 

Thank you for your question. I'll address it. Building a modern industrial system is crucial for promoting high-quality development. Guizhou possesses abundant mineral resources. To harness the economic value of these resources, we have identified leading industries based on our comparative advantages, resource endowments, and industrial foundations. We have accelerated the construction of six major industrial bases: an intensive processing base for resources, a new energy power battery and material R&D production base, a national computing power guarantee base, a baijiu production base, a new comprehensive energy base, and an advanced equipment manufacturing base. In short, we focus on projects where we have advantages, whether in mineral resources, industrial foundations, or comparative advantages. These six industrial bases align with the country's overall interests and leverage Guizhou's unique strengths. They involve both the transformation and upgrading of traditional industries as well as the innovative development of emerging and future industries.

In recent years, Guizhou's traditional industries, such as coal, electricity, tobacco, and liquor, have accelerated their transformation, upgrading, and quality improvement, revitalizing old industries with new growth. For instance, we have increased production capacity and enhanced safety levels through large-scale operations and smart technologies in the coal industry, bolstering our reputation as the "Coal Sea in Southern China.

Simultaneously, we have extended industrial chains, vigorously promoting the integrated development of the coal chemical and phosphorus chemical industries. Guizhou's coal has become a crucial raw material for modern chemical industries. In terms of electricity, while conventional thermal power dominated with 300,000 kilowatt units in the past, ultra-supercritical units of 660,000 kilowatts now lead the way. Moreover, we strive to develop clean energy, with clean energy installations accounting for over 56%, achieving a synergy of hydro, thermal, wind, solar, and storage energies. Guizhou not only meets its own electricity needs but also contributes to national energy security by supplying electricity to the Guangdong-Hong Kong-Macao Greater Bay Area and surrounding provinces.

Additionally, by seizing opportunities, we have accelerated the development of emerging and future industries such as new energy batteries, new materials, intelligent computing, and advanced equipment. While ensuring a stable fertilizer supply and national food security, Guizhou's phosphorus chemical industry is expanding into the new energy battery materials industry. We have attracted leading enterprises and promoted the dual-track development of "power batteries and energy storage batteries." One in every three electric vehicle batteries in China contains phosphorus from Guizhou. For example, in big data, we are vigorously developing the computing power and artificial intelligence industries, building on our data storage center foundation. Huawei Cloud and China Telecom have established intelligent computing centers here, making Guizhou one of the regions with the most abundant and powerful computing resources nationwide. Our computing power will provide strong support for the computing needs of the eastern regions and even the entire nation.

Today, Guizhou's industrial development shows promising momentum and a bright future. Thank you, everyone!

Cnr.cn:

We know that the Cun BA (Village Basketball Association) basketball tournament and the Village Super League football games in Guizhou have been consistently popular, and we are all paying close attention. As grassroots events spontaneously organized and participated in by villagers, these rural competitions have not only attracted active participation from local residents but have also garnered widespread attention from audiences nationwide. What makes Guizhou's rural sports events unique? What are the next steps being considered? Thank you.

Li Bingjun:

Thank you for your questions. I would like to invite Ms. Zhang to answer. 

Zhang Jingping:

The reasons behind Cun Chao and Cun BA receiving much attention and making Guizhou go viral lie in their unique features. I would like to share three keywords with you here: 

The first keyword is happiness. When you go into a Cun Chao or Cun BA arena, you are greeted by a joyful atmosphere. There are no empty seats in the grandstands for around 10,000 people, and you can hear shouting, cheering and applause. These are all heartfelt expressions of happiness brought about by sport. This happiness vividly reflects the deep and fundamental changes, unseen in a millennium, to people's spiritual and material lives after comprehensively winning the battle against poverty. It can be said that people of all ethnic groups in Guizhou have become more confident and self-reliant on the new journey in the new era. 

The second keyword is culture. Cun Chao and Cun BA are not only sporting events, but also cultural banquets. On the sidelines of these events, various folk performances, including Lusheng performances, wooden drum performances and the Kam Grand Choir of the Dong people, take turns to showcase various elements of Guizhou's colorful culture. Meanwhile, inside and outside the sites of competition, people in ethnic costumes can be seen singing and dancing. The prizes for the events are also our local specialties, and the whole process of the events integrate many aspects of our ethnic culture. People travel long distances to attend Cun Chao and Cun BA events and personally experience the cultural elements contained in them, while also being fascinated by Guizhou's unique ethnic customs. Guizhou, a magical land, has nurtured a colorful culture, enriching these sporting events with rich cultural connotations, and acting as a steady source of motivation for us to continue strengthening the construction of a colorful Guizhou as a cultural powerhouse.

The third keyword is rural style. Cun Chao and Cun BA were born in the countryside and are rooted in the countryside. Local villagers are the mainstay for organizing the events. They decide all the details themselves, and local Party committees and governments offer support to ensure the smooth running of the events. The organization and implementation of the events fully respect the principal role and pioneering spirit of the people, and constantly stimulate everyone's enthusiasm, initiative and creativity, reflecting the local essence of Cun Chao and Cun BA.

Currently, we are actively encouraging and supporting local areas to give full play to their natural and cultural resources and innovatively create brands for public sporting events. We believe that more sporting events with Guizhou characteristics will become a calling card of the beautiful province. We would also like to sincerely invite you all to travel to Guizhou, experience sport events, visit scenic areas, and appreciate up close the colorful ethnic customs and the charm of culture and sports. Thank you.

Cover News:

As Mr. Li mentioned just now, the forest coverage rate in Guizhou has reached 63%. As such, it can be said that the lucid waters and green mountains have become a blessing for the Guizhou people. What positive explorations has Guizhou made in ecological improvement in recent years? Thank you.

Li Bingjun:

Thank you for your question. I would like to invite Mr. Qiu to answer it. 

Qiu Zhenguo:

As you said, the lucid waters and green mountains have become a highlight of colorful Guizhou and a blessing for the Guizhou people. In recent years, we have worked on two aspects, firmly safeguarding the two bottom lines of development and ecological protection.

On one hand, we are committed to promoting green development. We are committed to building a colorful Guizhou and preventing pollution. In terms of industrial development, we do not engage in any business that does not meet the requirements of ecological and environmental protection, no matter the economic benefits, and firmly adhere to the "green threshold." We are accelerating green and low-carbon development, promoting the transformation and upgrading of traditional industries such as the phosphorus chemical industry and coal chemical industry, improving the level of clean and efficient utilization of coal, vigorously promoting the construction of "electric Guizhou," and further emphasizing eco-environment protection and carbon reduction in the process of development. 

On the other hand, we are unswervingly strengthening environmental protection and ecological improvement. We are strictly combating pollution and working hard to prevent and control pollution. A large number of ecological and environmental issues that were strongly reflected by the public have been resolved. What Guiyang citizens feel most deeply is that the Nanming River, which used to overflow with sewage, now flows smoothly through the city with clean water, enhancing their sense of gain and happiness. We have strengthened the governance and ecological improvement of the Wujiang River and other key river basins. Some prominent problems have been effectively managed and controlled, ensuring that rivers flow east with clean water. We have vigorously promoted the construction of "green Guizhou," and the area of rocky desertification has been halved in the past decade. We have promoted institutional innovation for promoting ecological progress, promulgated regulations on promoting ecological progress, established environmental courts, set up a trading center for ecological products, innovated mechanisms for realizing the value of ecological products, and carried out trials of carbon sequestration and carbon tickets for forestry. We have promoted the concept of ecological civilization, held 12 sessions of Eco Forum Global Guiyang, and continually transmitted China's voice on ecological civilization construction to the world. In Huawu village of Qianxi city in Guizhou, villagers have teamed up to regularly patrol and protect the river, safeguarded the Wujiang River's clear water, and developed rural tourism along the river. The environment is becoming increasingly beautiful, attracting more and more tourists. The dividends brought by lucid waters and green mountains are increasing the incomes of rural residents.

We will adhere to the principles of prioritizing eco-environment conservation and pursuing green development, safeguarding the sound eco-environment – the most inclusive benefit to people's wellbeing. We will strengthen ecological protection in the upper reaches of the Yangtze and Pearl rivers, aiming for new achievements in enhancing ecological conservation. Thank you.

CCTV:

In recent years, Guizhou has actively promoted various welfare projects in areas such as employment, education, and medical care. Could you please specify what concrete actions have been taken? Have these efforts effectively addressed the public's pressing concerns and needs? What further measures are planned for the future? Thank you.

Li Bingjun:

Thank you for your question. I'll answer it now. We have taken meeting the people's expectations as the goal of our governance. We have consistently acted on the people-centered development philosophy. Ensuring and improving the people's wellbeing are the core focus and foundation of all our work. We strive to make people's lives more prosperous and better. Let me provide an overview from several perspectives.

We strive to ensure stable employment for more people, promoting local job opportunities. Last September, Shi Chuanying, an embroiderer from Taijiang, Guizhou, showcased her exquisite Miao embroidery at Milan Fashion Week, demonstrating her exceptional craftsmanship. There are over 500,000 trained embroiderers in Guizhou like her. Many Guizhou natives working elsewhere are now finding opportunities back home. For instance, Zheng'an county in Guizhou has attracted talent to develop its guitar industry, earning the nickname "Hometown of Chinese Guitar Manufacturing" and creating jobs for 14,000 people. In recent years, Guizhou has added 600,000 urban jobs annually, organized labor exports, and maintained around 6 million workers outside the province under its "Six-Six Employment Stability Plan."

We strive to make travel more convenient for people. Every city and prefecture in the province now has airports and high-speed railways. Highways connect counties, and villages have cement roads. Industrial roads go directly to farmlands, and courier packages are delivered to farmers' doorsteps. People can now easily take buses right from their doorsteps, making isolated transportation a thing of the past. The transportation improvement in Guizhou has made travel more convenient and brought profound changes to people's thinking, production conditions, and way of life. Building roads connects not just vehicles, but hearts as well.  

We strive to provide people with access to quality medical resources. We have established five national and regional medical centers, allowing people in Guizhou to benefit from the high-quality medical resources found in developed regions. Recently, the Guizhou Branch of Shanghai Children's Medical Center successfully performed liver tumor resection surgery on a baby just 6 days old, setting a national record for the youngest patient to undergo this procedure. At the same time, we are accelerating efforts to decentralize high-quality medical resources, allowing more people to receive excellent healthcare closer to home.

We strive to enable more young people in Guizhou to attend university and receive a better education. Currently, higher education in our province has entered a stage of universal access. During the 14th Five-Year Plan period (2021-2025), we plan to add 154,000 higher education seats. At the same time, we are enhancing the development of scientific and engineering universities, colleges and as well as disciplines to meet the demands of economic and social development, particularly industry needs, and accelerating the development of vocational education. Last year, spending on education accounted for one-fifth of our government expenditures.

We are deeply committed to providing safeguards to enable extremely vulnerable groups to meet their basic living needs. For people living on subsistence allowances, children in welfare institutions, and people with disabilities, we are gradually raising social security standards in line with economic and social development. This ensures that everyone can share benefits of high-quality development.

Next, we will continue to implement more initiatives that deliver real benefits to the people to their satisfaction, ensuring that the people of Guizhou can enjoy a safer and better quality of life. Thank you.

Science and Technology Daily:

We understand that Guizhou is one of the first regions in China to develop big data and is currently constructing a national-level computing power support base. Could you share what considerations Guizhou has in nurturing and expanding emerging digital industries? Thank you.

Luo Qiang:

Guizhou has been implementing its big data strategy since 2014, marking a decade of progress. As the first national comprehensive pilot zone for big data, Guizhou's big data industry has grown from scratch and achieved vigorous development.

In recent years, we have attracted a group of industry-leading enterprises such as Huawei, Tencent, and the three major telecommunications operators to establish big data centers in Guizhou. The province now has 47 key data centers operational or under construction. We have completed a series of new landmark digital infrastructure projects, including the operation of national internet backbone access points and international internet data dedicated channels. Last year, China Mobile completed the world's first 400-gigabit computing channel in Guiyang, enabling data transmission to Guangzhou and Shenzhen in just 10 milliseconds and to Hangzhou in 16 milliseconds. Additionally, we have developed important platforms like the Guiyang Big Data Science and Technology Innovation City and hosted international events such as the Big Data Expo. Guizhou's big data initiative continues to shine brighter on the global stage.

Today's Guizhou has become one of the eight national computing hubs of the country's east-data-west-computing project. Guiyang city and Guian New Area are sparing no effort to build the "data valley" of China. As China has decided to build Guizhou into a national digital economy development and innovation zone, the province will take this opportunity to advance emerging industries, like artificial intelligence, focusing on the three key areas of computing power, empowerment and industry development. In terms of computing power, Guizhou will expand intelligent computing center clusters to improve its capacity as well as create a globally competitive intelligent computing base. As for empowerment, the province will leverage Huawei Cloud's Pangu model to promote the intelligent transformation of industries, create new tourism scenarios and advance rural digital construction, thus empowering various industries with digital capabilities. In terms of industries, Guizhou will develop three 100-billion-yuan-level industrial clusters, namely data centers, intelligent terminals and data applications, so as to improve the industrial ecosystem and accelerate progress down the new path of the digital industry.

Guizhou has the foundation, advantages and confidence to build a computing power support base that serves the whole country. We will create the best environment for development and explore the blue ocean of digital economy alongside our friends from home and abroad. Thank you.

21st Century Business Herald:

We have noticed that the State Council last year approved Guizhou's comprehensive reform plan for advancing the large-scale development of the western region. How has Guizhou implemented this plan? What progress and achievements have been made so far? Thank you.

Li Bingjun:

Thank you for your questions. These questions will be answered by Mr. Qiu Zhenguo, director of the Guizhou Provincial Development and Reform Commission.

Qiu Zhenguo:

After the State Council approved Guizhou's comprehensive reform plan for advancing the large-scale development of the western region, the country has given Guizhou greater power in carrying out reform. We have made full use of this opportunity to propose a series of specific reform measures focusing on market-oriented reform. We have encouraged bold experiments and breakthroughs, as well as proactive reforms in key areas including investment and financing, state capital and state-owned enterprises (SOEs), and market-based allocation of production factors, which have achieved substantial results. Here I will give some examples.

In terms of investment and financing system reforms, we have regulated government investment management more strictly. We issued a "1+3" policy system, with "1" representing the regulations on the management of government investment projects and "3" representing three supporting measures involving decision-making evaluation, preliminary estimate management and fiscal budget assessment. Through reforms of these policies, we have enhanced management of government investment projects at all stages. It has become a consensus throughout the province to track the performance of investments and hold to full account wasteful investments. At the same time, we have innovated the way we use fiscal funds and have established industrial funds to advance new industrialization, new urbanization, agricultural and rural modernization, and the cultural tourism industry. With a shift from the government's direct investment to market-oriented fund investment, we have mobilized private capital and non-governmental investments, better leveraging the guiding role of fiscal funds.

In terms of state capital and SOE reforms, we have improved their core competitiveness and core functions. Take Guizhou Phosphate Chemical Group as an example. Through reform and reorganization, we merged two phosphate chemical enterprises in the province into one group, promoting full integration of resources, technologies, management and market layouts. Both the size and profits of the enterprise have been significantly increased, and the reform has had a remarkable outcome. We also carried out reform and reorganization of SOEs in the areas of energy, tourism and trade logistics, which has obtained significant results.

In terms of production factor allocation, we have ensured more effective use of resources. Among China's first group of provinces to carry out local trials for the development and use of public data resources, Guizhou has become a front-runner in transactions with data circulation. Data products from all over the country covering categories such as meteorology, electricity, and telecommunication have been traded at the Guiyang Big Data Exchange. We established a water price reform system covering water reserves, water supply and sewage discharge based on a user-pay mode, ensuring returns to investors and attracting private capital into the building of Guizhou's grand water network. We also adopted a time-of-use power price policy to stagger production times of industrial enterprises, effectively securing the steady supply of energy and lowering their electricity costs. During this year's Spring Festival holiday, we ensured consecutive production for enterprises.

Reform is the driving force for development. We will fully implement the new plans and requirements of the central authority for deepening reform as well as intensify reform efforts to explore a new path for making further progress in the large-scale development of the western region. Thank you.

Beijing Youth Daily:

Across the whole country, Guizhou has the largest population of individuals who have been lifted out of poverty and who are relocated from inhospitable areas. The province must have faced challenging tasks in both consolidating poverty alleviation achievements and promoting rural revitalization. For the next step, what will Guizhou do to better align its efforts to consolidate and expand poverty alleviation achievements with efforts to promote the revitalization of rural areas, so as to advance all-around rural revitalization? Thank you.

Li Bingjun:

Thank you for your question. This question will be answered by Mr. Luo Qiang, vice governor of Guizhou province.

Luo Qiang:

Since Guizhou won the battle against poverty, we have focused on preventing large-scale relapses into poverty by monitoring and assisting those lifted out of it. Guizhou implemented a three-year action to increase residents' income. By the end of last year, the population with an annual per capita net income of less than 10,000 yuan had been essentially reduced to zero. After securing the bottom line, we have drawn on and applied the experience from the Green Rural Revival Program in Zhejiang province to further enrich the rural development program initiated in 2001 that focuses on prosperity, education, happiness, and beautified environment, to better implement the grand strategy of rural revitalization.

To achieve rural prosperity, we focus on employment and industries to continuously increase farmers' income. On the one hand, we have stabilized the scale of migrant workers, enabling 6 million people to find stable jobs outside their hometowns. On the other hand, we have continued to develop the county economy and expand rural industries to create local jobs, helping farmers earn money and secure a promising future without leaving home. For example, we have built over 1,300 employment assistance workshops in nearly 1,000 relocation communities across the province, helping 120,000 people increase their income through local employment.

In terms of rural education, we ensure farmers get the education they need, acquire useful knowledge, and achieve something from what they have learned. In recent years, we have focused on inspiring confidence and improving education, strengthening basic education in rural areas, and implementing vocational skills training programs to cultivate technicians and Guizhou cuisine chefs. This ensures that rural children can attend school and receive a good education while more farmers can acquire skills and rely on their own efforts to sustain a good life.

A happy rural life lies in civilized customs and effective governance. Nowadays, the spiritual outlook of Guizhou's villages is improving, and farmers' daily lives are no longer limited to traditional farm work. The thriving of Cun Chao and Cun BA, village football and basketball tournaments, vividly portrays the new life of Guizhou farmers. Consequentially, an increasing number of city dwellers are eager to experience the charm of rural life.

To create a beautiful countryside, we leverage Guizhou's natural mountains and rivers to enhance the rural living environment. This effort aims to create a livable rural environment that is clean and tidy, and with picturesque landscape. Today, Guizhou is home to many beautiful villages like Xijiang Miao Village and Zhaoxing Dong Village.

We continue to strive for beautiful landscapes, vibrant villages, and happy smiles from the villagers. We will continue to explore, work tirelessly, and make long-term efforts to accelerate urban-rural integration and promote comprehensive rural revitalization. Thank you.

China News Service:

Guizhou vows to become a world-class tourist destination. How confident are you in achieving this goal? What measures will Guizhou take to enhance the tourist experience and promote high-quality development in the tourism industry? Thank you.

Li Bingjun:

Thank you for your question. This gives me a chance to talk about Guizhou's tourism sector, which is very competitive and promising. This spring, it became a fashion to visit the province for mountain views. Guizhou is also a nice choice for avoiding summer heat thanks to pleasant weather during the season. Take Guiyang as an example. In the summer, the maximum temperature is about 30 degrees Celsius, and these days, it is about 27 or 28 degrees Celsius. You don't need to turn on the air conditioner at night. "Colorful Guizhou" and "Cool Guiyang" are not just empty words. When I first came to work in Guizhou, an old comrade once told me that no matter how hot it is in summer, I should bring a coat when I travel for work. I think this advice comes from years of experience. Remember to bring a coat if you come to Guizhou in the summer.

Currently, we are focusing on creating a group of world-class tourist attractions. In Guizhou, there are six most representative scenic spots. First is Huangguoshu Waterfall, the largest waterfall in Asia, renowned both at home and abroad. I'm sure it's quite familiar to all of you. Second is Xiaoqikong scenic area in Libo county, known as the "emerald on the earth's belt," with crystal-lucid water resembling a green gem. Third is Xijiang Qianhu Miao Village, the world's largest and best-preserved Miao village. Fourth is Chishui Danxia, the largest Danxia landform in China, featuring the spectacular Chishui Waterfall. Fifth is the Forest of Ten Thousand Peaks. Xu Xiake once wrote, "There are many mountains in the world, but you will find a peak forest only here." So you can imagine its grandeur. Sixth is Fanjing Mountain, the highest peak of the Wuling Mountains, an isolated peak in a vast ancient forest, and also a Buddhist shrine. You might have seen Fanjing Mountain in the promotional video just now, with its towering thumb-shaped peak as if giving a thumbs-up to our great motherland. This showcases the unique charm of Guizhou's landscapes and is the most popular tourist destination in the province. Guizhou has many other great places, but I won't introduce them all due to time constraints. I'll just mention a few names: Zhijin Cave, Shuanghe Cave, Malinghe River Canyon, Qingyan Ancient Town and Zhenyuan Ancient Town. Guizhou is known as a "park province", with many more scenic places to explore.

We have inherited and developed Guizhou's colorful culture. The culture of ethnic minority groups is diverse with 18 ethnic minorities having lived in Guizhou for generations and 312 Chinese ethnic featured villages scattered all over the province. Due to inconvenience with transportation in the past, ethnic culture in Guizhou has been well preserved. Guizhou is the origin of Yangmingism. Wang Yangming attained enlightenment in Longchang, Guizhou, and his concepts of "the unity of knowledge and action" and "the extension of innate knowledge" have become influential Eastern philosophies worldwide. Historical sites like Wanyiwo and Yangming Cave are well preserved to this day and are worth visiting. The Zunyi Conference and the Four Crossings of the Chishui River led to heroic verses such as "idle boast the strong pass is a wall of iron; with firm strides we are crossing its summit."

We have vigorously promoted the integration of sports and tourism. Guizhou has over 300 days a year suitable for outdoor activities. Known as "the museum of world bridges," the province is home to nearly half of the world's top 100 tallest bridges. Visitors to Guizhou can enjoy marathons and cycling amidst lush mountains and clear waters, or indulge in activities like gliding, bungee jumping and rafting among high bridges and canyons. Unique ethnic sports such as single bamboo drifting and dragon boat racing are also available. The Guiyang Marathon will start the day after tomorrow, offering a rare opportunity to run a marathon in the cool summer breeze.

We welcome everyone to Guizhou for a joyful journey. You can experience a "Village Super League" or "Village Basketball Association" game, cheer alongside local communities and sing "Mrs. Shexiang" to feel the vibrant ethnic culture. You may attend a roadside concert to enjoy a combination of elegant and popular performances amidst the crowd. You can partake in a long table banquet to savor the tangy, sweet and spicy flavors of Guizhou cuisine. You can enjoy a cup of fragrant liquor to relish the idyllic lifestyle. This is the journey everyone dreams of, a journey of pure joy. I believe visiting Guizhou will be an unforgettable experience. Thank you!

Southern Daily:

All regions are currently placing great emphasis on technological innovation. We have noticed that Guizhou is developing a number of national-level innovation platforms. Could you please elaborate on Guizhou's approaches and considerations regarding technological innovation? Thank you.

Li Bingjun: 

Thank you for your question. Let us invite Mrs. Zhang to answer this question.

Zhang Jingping:

Guizhou has always attached great importance to technological innovation. Through continuous efforts, our technological capabilities have been consistently strengthened, and the achievements of our innovation efforts are unceasingly developing. I will introduce our efforts in the following aspects. 

Firstly, we advance technological innovation by serving and supporting national strategic scientific capabilities. As we all know, a number of national scientific innovation teams, such as the "China Sky Eye" (FAST) and the Institute of Geochemistry of the Chinese Academy of Sciences, are based in Guizhou. The "China Sky Eye" has made continuous breakthroughs in the number of new pulsars discovered, and the Institute of Geochemistry released a highly accurate geological "photo album" of the moon. These high-level teams are continually setting new records in their respective fields. While providing robust support services, we also learn from and adopt advanced innovation concepts from these exemplary teams, fostering Guizhou's technological strengths and laying a solid foundation for technological innovation.

Secondly, we promote technological innovation by leveraging our resource endowments and industrial structures. Mr. Li has already introduced Guizhou's resource endowments and industrial layout. We are committed to utilizing our resource advantages and industrial base, stimulating the vitality of enterprises as innovative main entities and aligning technological solutions with industrial demands. We are implementing six major strategic technological initiatives, which includes nurturing strategic scientific capabilities, achieving breakthroughs in mineral exploration, advancing mineral processing technologies, transitioning the energy industry to green and low-carbon development, supporting modern, efficient mountain agriculture and empowering industries through digitalization. By maintaining our continuous efforts, we have achieved new results. For instance, our breakthroughs in mineral exploration technology have enabled Guizhou to play a more crucial role in ensuring national resource and energy security as well as enhancing the resilience of supply chains and industrial chains.

Additionally, we focus on competitive strengths to advance technological innovation. We coordinate technological platforms, technologies, personnel, funds and policies, working to increase the quality and efficiency of technological innovation. Currently, we are integrating and reorganizing previously scattered technological platforms, and building a number of high-level technological innovation platforms. The national key laboratory for green pesticides established in Guizhou has made significant progress, especially in talent aggregation, technological breakthroughs, new product development and the transformation and industrialization of scientific achievements. Moving forward, we will continue to strengthen the construction of platforms. 

At the same time, we recognize that our existing technological capabilities are insufficient to support the modernization of Guizhou's industrial system. Going forward, we will continue to advance major initiatives such as "Introducing Science and Technology to Guizhou," "Academicians' Trip to Guizhou," and "East-West Collaboration," actively introducing high-quality innovative resources from various fields to jointly contribute to Guizhou's technological innovation and high-quality development. We sincerely appreciate your interest and support for Guizhou's technological endeavors and hope you will continue to follow our technological innovation efforts. Thank you! 

Shou Xiaoli:

Let's continue with the questions. Okay, two more journalists have raised their hands. These will be the last two questions.

Farmers' Daily:

Specialty high-quality agricultural products from Guizhou have established a strong reputation and competitive edge in the market. Could you please tell us what work Guizhou has undertaken and what progress has been made in developing rural industries with local features and promoting the strengthening of the province's agriculture? Thank you.

Li Bingjun:

Thank you for your questions. Mr. Luo Qiang will answer these questions.

Luo Qiang:

Guizhou has a unique mountainous, vertical climate, leading to longer growth cycles for our agricultural products, making them exceptionally flavorful and healthy. The distinct taste of the meat and vegetables here is deeply loved by consumers. In recent years, we have fully leveraged this advantage, targeted market demands and selected a number of key industries to develop based on our existing industrial base. We have witnessed the remarkable transformation of our "local specialties" into a new engine for promoting rural revitalization.

We have focused on variety, quality and brand to promote the expansion of industries with local features, improve quality and efficiency, and achieve better development. For instance, Guizhou Matcha, which Mr. Li Bingjun just mentioned, already holds more than 60 patents and has passed over 500 EU tests. Jiangkou County, situated at the foot of Fanjing Mountain and a former national-level poverty-stricken county, is now known as the "World Matcha Super Factory" thanks to matcha, helping nearly 100,000 local tea farmers increase their incomes.

We have made significant efforts to cultivate and strengthen business entities. Leveraging the advantages of leading enterprises in terms of capital, talent, technology and information, we have focused on the cultivation of varieties at the front end and market sales at the back end to promote a comprehensive upgrading of our agricultural sector. By the end of last year, we have cultivated 12 national-level leading tea enterprises, ranking second in the country. Over the past five years, the number of our edible fungi-related enterprises has doubled, the annual average growth of the comprehensive output value for cacti has exceeded 30% and chili products have occupied nearly 70% of the domestic market share.

We insist on maintaining farmers' primary role in planting and breeding. We are ensuring that farmers take the lead in areas where they excel to reduce production costs. By unleashing their initiative, we make industrial development more sustainable. In the next few days, the honey plum from Liuma Town in Zhenning County, Guizhou, will hit the market. It has transitioned from an unknown "countryside fruit" to a "star" in the fruit world. This is the result of farmers choosing and expanding the right industry. Now, residents of the village enjoy modern homes and cars. Liuma Town has also proudly joined the ranks of China's towns with a characteristic industry generating an annual output value of at least 1 billion yuan.

Among the agricultural products from Guizhou, its beef has become well-known, its tea leaves have gone international, its small chili peppers have become a major industry and its honey plums have let farmers experience the "sweet taste of success," making people's lives increasingly prosperous. We will continue to work hard to grow and strengthen these industries with local features, leading more people to increase their income and become wealthy. Thank you.

Shou Xiaoli:

Alright, last question.

China Daily:

It is understood that Guizhou is constructing a new high ground for an open inland economy, which is also a positioning given to Guizhou by the central government. As an inland province in western China, how will Guizhou promote high-level domestic and international opening-up as well as better serve and integrate into the new national development pattern? Thank you!

Li Bingjun:

Thank you for your question, I will answer this. As an inland province in western China, Guizhou, which is not along a river, the sea or the border, has relatively lacked in objective conditions for opening-up in the past. However, with the deep implementation of the Belt and Road Initiative, especially the opening of the China-Laos Railway and the accelerated construction of the New International Land-Sea Trade Corridor, Guizhou's opening-up pattern has fundamentally changed. Now, westward from Guizhou, through the China-Laos Railway to Vientiane, Laos, we can reach ASEAN countries; northward, through the China-Europe freight train and China-Central Asia freight train, we can reach Central Asia, North Asia and Europe directly; southward, through the New International Land-Sea Trade Corridor and the Guizhou-Guangdong transportation channels, we can easily reach the sea. It can be said that Guizhou's opening-up pattern has undergone profound changes, and the conditions for developing an open inland economy have been met.

As Guizhou embarks on its opening-up journey, it is crucial to define a clear direction. Given the current changes in the opening-up pattern, we believe that pursuing opportunities around the Belt and Road Initiative (BRI), particularly in Southeast Asia, South Asia, and Central Asia, holds the most potential. In the past two years, Guizhou's total import and export volume with countries along the BRI has increased by an annual average of 28.4%, and with ASEAN it has increased by 33.8%. Last month, I led a delegation to visit Indonesia, Thailand and Laos. The political and business communities in these three countries are very optimistic about the prospects for cooperation with Guizhou, which has led to a number of practical cooperative achievements.

Guizhou's opening-up requires the development of inland ports. By concentrating our efforts on developing the Guiyang International Land Port, we are transferring the functions of coastal ports inland, enabling direct export clearance and direct import entry. This has greatly improved overall customs clearance efficiency. We will further enhance the functionality of the inland port, providing businesses with more convenient "one-stop" services, establishing it as a major international logistics hub in southwest China.

Guizhou's opening-up necessitates the export of more specialty and high-quality goods, as well as increased imports of such quality goods. Currently, items such as Guizhou's baijiu, tires, chemical fertilizers, new energy battery materials, agricultural products and guitars are very popular overseas.

Going forward, we will continue to promote opening-up, enhance the development of our export industries and improve our international channels, platforms and environment. We will resolutely follow the Belt and Road Initiative and go global, contributing to the creation and construction of a new development pattern in Guizhou. Thank you!

Shou Xiaoli:

Thank you, Mr. Li. Thank you to all the speakers and participating journalists. Today's press conference will end here. Goodbye, everyone.

Translated and edited by Wang Yiming, Wang Wei, Mi Xingang, Huang Shan, Yang Xi, Liu Sitong, Liu Caiyi, Wang Yanfang, Li Xiao, Wang Qian, Wang Ziteng, Liu Jianing, Ma Yujia, Zhang Rui, Li Huiru, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers:

Mr. Ren Zhenhe, deputy secretary of the Communist Party of China (CPC) Gansu Provincial Committee and governor of Gansu province

Mr. Cheng Xiaobo, a member of the Standing Committee of the CPC Gansu Provincial Committee and executive vice governor of Gansu province

Mr. Zhang Jingang, a member of the Standing Committee of the CPC Gansu Provincial Committee and vice governor of Gansu province

Mr. Lei Siwei, vice governor of Gansu province

Chairperson:

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

Date: 

June 13, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 30th press conference in the series "Promoting High-Quality Development." Today, we have invited Mr. Ren Zhenhe, deputy secretary of the Communist Party of China (CPC) Gansu Provincial Committee and governor of Gansu province, to brief you on accelerating the construction of a happy and beautiful Gansu and creating new development prospects for Gansu, and to take your questions. Also present today are Mr. Cheng Xiaobo, a member of the Standing Committee of the CPC Gansu Provincial Committee and executive vice governor of Gansu province; Mr. Zhang Jingang, a member of the Standing Committee of the CPC Gansu Provincial Committee and vice governor of Gansu province; and Mr. Lei Siwei, vice governor of Gansu province. Now, I'll give the floor to Mr. Ren for his introduction.

Ren Zhenhe:

Thank you, Ms. Shou. Good morning. It's a great pleasure to brief you on Gansu's development. First, on behalf of the CPC Gansu Provincial Committee, the Gansu provincial government, and our 25 million residents, I would like to extend my sincere gratitude to the media and all sectors of society for your long-term interest in and support for Gansu's economic and social development.

When one mentions Gansu, Dunhuang often comes to mind. The city is not only an emblem of Gansu but also a source of national pride. Reflecting on its thousands of years of history, Dunhuang witnessed the prosperity of the ancient Silk Road. Today, it stands as a testament to Gansu's dynamic development in the new era. Gansu, a land rich in cultural heritage, imbued with revolutionary spirit and full of unique allure, is now bursting with vitality and showing broad prospects on the grand path toward Chinese modernization.

General Secretary Xi Jinping holds Gansu and its people close to his heart. Since the 18th CPC National Congress, he has visited Gansu twice, encouraging us to accelerate the development of a happy new Gansu featuring a thriving economy, beautiful landscapes, ethnic unity and social harmony. Over the years, we have kept General Secretary Xi Jinping's instructions in mind and forged ahead. Building on our victory in the critical battle against poverty, we have focused on addressing the province's "three imbalances" in urban-rural development, regional development and industrial development. By firmly committing to high-quality development as the top priority in the new era, we are striving to write a remarkable chapter of prosperity and revitalization in Gansu.

In recent years, we have been dedicated to promoting economic development, with our pace of progress accelerating. In 2021, Gansu's economic output exceeded 1 trillion yuan, and since 2022, Gansu's growth rate has remained among the top nationwide for seven consecutive quarters. Our old industrial bases are being rejuvenated, with traditional industries such as petrochemicals, nonferrous metallurgy and equipment manufacturing undergoing transformation and upgrading. Emerging industries like new energy, new materials, biomedicine and data information are flourishing. Lanzhou New Area has ranked among the top 19 national-level new areas in terms of economic growth rate for seven consecutive years. Infrastructure weaknesses in sectors such as transportation and water conservancy are being addressed at a faster pace. Construction of the Pingliang-Qingyang railway, long-awaited by the people of the old revolutionary base areas in Gansu, has begun. The project of diverting water from the Taohe River to central Gansu has enabled a quarter of Gansu's population to move past the era of relying solely on the weather for water.

Over the years, we have been committed to enhancing the natural beauty of our landscapes, with the vibrant scenery growing more resplendent. The philosophy of "lucid waters and lush mountains are invaluable assets" has deeply resonated with us. Notably, the Gansu section of the Yellow River now sends clear water downstream, and substantial progress has been made in ecological conservation in the Qilian Mountains, leading to a remarkable green transformation. Over the past three years, we have completed 29.52 million mu (approximately 1.97 million hectares) of afforestation, ranking second nationwide in greening area in both 2022 and 2023. It was once feared that Minqin county, located in the Hexi Corridor and surrounded by the Tengger and Badain Jaran deserts on its east, west and north sides, would become the next Lop Nur. However, the people of Minqin have upheld the spirit of not bowing down to difficulties and daring to transform deserts into oases. Year after year, generation after generation, they have created a miracle of desert control and afforestation, transforming the situation from "sand encroaching, people retreating" to "green advancing, sand receding." The once dry Qingtu Lake, parched for over half a century, has now become a shimmering gem in the desert, where waves ripple peacefully and waterbirds flock gracefully.

In recent years, we have been committed to ethnic unity and have made notable progress in common development. Gansu is a multi-ethnic province, with the Dongxiang, Baoan and Yugur ethnic groups being ethnic minorities that are unique to Gansu. We have focused on forging a strong sense of community for the Chinese nation, and speeding up the development of ethnic minority areas. The people of all ethnic groups in the province are tightly held together like pomegranate seeds, and are jointly embarking on a new journey of modernization. For example, Tianzhu Tibetan Autonomous County, the first ethnic minority autonomous county in China, is known for its stunning eco-environment with green mountains and clear waters. Over the past three years, its economic growth rate has exceeded 8.6%, ranking among the top ethnic autonomous counties in the country.

In recent years, we have been committed to enhancing social harmony and as a result our people are enjoying a greater sense of happiness. About 80% of our fiscal funds are dedicated to improving people's living standards. Every year, we implement numerous livelihood projects in areas such as education, employment, elderly care and public health, ensuring they are tangible and accessible to the public. In 2023, the average disposable income of our residents increased by 7.5%, ranking second in the country. Officials at the provincial, municipal, county and township levels have paired up with orphans, severely disabled individuals and families in extreme poverty as part of the "Paired Assistance: Love in Gansu" initiative to provide them with care and support. Given the fragile ecology and frequent geological disasters, we launched a relocation project for people living in six types of areas prone to ecological and geological hazards. So far, 78,600 households, totaling 280,000 people, have been safely relocated from dangerous areas to secure and happy environments.

On this new journey, we will continue to follow the directives of General Secretary Xi Jinping, focusing on the central task of economic development and the primary goal of high-quality growth. We will seize the strategic opportunities to promote the development of the western region in the new era, work diligently and pragmatically as well as make step-by-step efforts to transform Gansu's grand blueprint for Chinese modernization into a beautiful reality.

That's all for my opening introduction. Thank you!

Shou Xiaoli:

Thank you, Mr. Ren, for your introduction. We now move to the Q&A session. Please identify the media organization you represent before raising your questions.

Economic Daily:

As Governor Ren just mentioned, Gansu's economic growth rate has remained at the country's top echelon for seven consecutive quarters. What has Gansu done to promote high-quality economic development, and what is your next step forward? Thank you.

Ren Zhenhe:

Thank you for your interest in Gansu's development. As you just mentioned, Gansu's economic growth rate is among the top in the country. This progress has been hard-won. In recent years, under the guidance of the new development philosophy, we have pursued progress while maintaining stability, made full use of policy incentives, consolidated and expanded the momentum of economic upturn and have laid the foundation and increased momentum for high-quality development. Specifically, we launched four campaigns to strengthen science and technology, and industry, as well as development of our provincial capital and counties. We focus on tapping the full potential of existing resources, introducing incremental assets, improving quality, enhancing energy and expanding overall scales.

In terms of tapping the full potential of existing resources, we fully leverage the advantages of old industrial bases, accelerate the transformation and upgrading of traditional industries and promote the extension, supplementation and strengthening of advantageous and leading industries. A number of "time-honored brands" are growing into "industrial trees" with solid roots and lush branches. An obvious feature is that the industry has become more dynamic with supply chains becoming longer and the number of enterprises having increased. Since the 14th Five-Year Plan period (2021-2025), there has been a net increase of 1,059 industrial enterprises above the designated size.

In terms of introducing incremental assets, we have actively integrated into the unified national market, vigorously improved the business environment and consciously undertaken industrial transfer from the central and eastern regions. We have signed contracts with central SOEs for three consecutive years, and a large number of cooperation projects have been put into operation. In 2023, the total contract value of investment coming into the province exceeded one trillion yuan. Juhua Group Corporation's 41 billion yuan new materials project has been established in Yumen, the "old oil city," setting a new investment record for industrial projects in Gansu. The increasing enthusiasm for investment in Gansu reflects growing optimism from all parties.

In terms of improving quality, Gansu has gathered high-quality scientific and technological resources such as Lanzhou University and three institutes under Lanzhou Branch of Chinese Academy of Sciences (CAS): the Institute of Modern Physics, the Institute of Chemical Physics and the Cold and Arid Regions Environmental and Engineering Research Institute. We have further advanced a campaign to strengthen science and technology, and achieved a number of major scientific and technological achievements in the fields of heavy ion physics, biomedicine as well as glaciers and permafrost. For example, the Institute of Modern Physics under CAS developed China's first carbon ion therapy system with independent intellectual property rights, which has now been put into clinical use in Gansu. This heavy ion medical device, a major national project for eliminating cancer cells, marks China's achievement as the fourth country in the world to master clinical treatment using heavy ions.

In terms of enhancing our development capacity, Gansu has 86 counties, cities and districts, all of which can serve as "growth engines" once substantially developed. We have divided the county-level regions in the province into five categories: those providing urban services, those led by industrial enterprises, those prioritizing agricultural development, those empowered by culture and tourism, and those with significant ecological functions. Based on the distinctive local conditions of these regions, we have provided guidance for their differentiated development, nurturing counties with strong agricultural capacity, profitable industrial growth, renowned cultural and tourism attractions, and improved ecological environment. In the past three years, 16 additional counties have achieved a GDP of over 10 billion yuan, bringing the total to 36.

In terms of increasing the total economic output, only by achieving effective qualitative improvements and reasonable quantitative growth can Gansu accelerate its progress and catch up with other provinces. Taking development as the foundation and key to solving all problems, we have prioritized ecological preservation and adhere to green development. We have also leveraged our comparative advantages and strived to develop related industries and projects, achieving progress every year and making significant strides every three years. In 2023, Gansu's GDP reached 1.18 trillion yuan, which was 2.2 times that of 2012. This represents not only a quantitative increase and leapfrog achievement, but also a qualitative transformation and improvement. In addition, this progress also significantly lifts our spirits. We are confident that we will achieve another major breakthrough by the end of the 14th Five-Year Plan period (2021-2025).

Moving forward, we will redouble our efforts in three aspects. First, we will seize development opportunities. We will fully implement major national strategies, such as promoting the large-scale development of the western region in the new era. We will position ourselves well, further enhance our strength, and effectively translate national policies into tangible development results. Second, we will strengthen our development capacity. We will revitalize our old industrial bases, foster new quality productive forces in accordance with local conditions, and expedite the construction of a modern industrial system with distinctive local characteristics in Gansu, in a bid to ensure sound and steady high-quality development. Third, we will contribute our part to the nation's overall development. We will strengthen our capabilities to meet the needs of the country, and effectively demonstrate Gansu's responsibilities, achievements and strengths in resources, energy supply, food security and ecological development.

Thank you.

CRNTT:

Gansu boasts rich cultural and tourism resources, with places like the Mogao Grottoes in Dunhuang and the Jiayuguan section of the Great Wall being popular destinations for tourists. Since March, Tianshui malatang, a numbing-spicy hotpot, has taken the country by storm, resulting in the continued popularity of Gansu's cultural and tourism sector. Looking ahead, what aspects will Gansu focus on to promote the high-quality development of this sector? Thank you.

Ren Zhenhe:

Thank you. This is a very good question, and you have highlighted one of the most popular sectors in Gansu nowadays. My colleague Mr. Zhang will answer this question.

Zhang Jingang:

Thank you for your interest in Gansu's cultural and tourism sector. This year, Tianshui malatang became extremely popular and attracted nationwide attention. It is fair to say that the appeal of malatang starts with its flavor, and it is inspired by Gansu's beautiful scenery and shaped by the local culture. The cuisine is a microcosm of Gansu's unique food culture.

Here, I would like to describe Gansu using two common phrases. The first phrase is: "Throughout 5,000 years of history, Gansu is exceptional." Gansu is an important birthplace of the Chinese nation and civilization. In Gansu, you can explore the origins of civilization through such legendary stories as Fuxi creating the heaven by drawing the first line of the Qian trigram, Zhang Qian exploring the Western Regions, and Zhuge Liang's six campaigns from Mount Qishan. You can also experience its cultural richness by delving into the profound Dunhuang culture, enjoying the beautiful and engaging "Flower Rains Along the Silk Road" dance drama, and reading the enlightening Duzhe magazine. The second phrase is: "Spanning 3,000 li from east to west, Gansu is extraordinary." Characterized by its long and narrow terrain, Gansu spans more than 1,600 kilometers from east to west. It boasts all types of landforms except oceans, islands and reefs. It is said that four-fifths of China's scenery can be seen here in Gansu.

Looking ahead, we will make continuous efforts in three aspects to build our resource-rich province into one strong in culture and tourism.

First, we will make full use of its cultural and tourism resources. Gansu ranks fifth in the country in terms of richness of culture resources and is home to seven UNESCO World Cultural Heritage sites. We insist on employing the most advanced development methods to develop our world-class cultural and tourism resources, and profoundly explore their connotations and values of the times. For example, the "Digital Dunhuang" website that we are promoting aims to extend the reach of the cultural heritage beyond its original physical location, thereby allowing more tourists to experience the unique charm of the cultural relics and heritage left by our ancestors.

Second, we will further diversify business forms. Gansu has made significant efforts in this regard. For example, Kongtong Mountain in Pingliang, renowned as the most sacred Taoist mountain in China, not only serves as a scenic spot, but also as a resort for leisure activities and health care services. In recent years, it has developed many business forms under the "culture and tourism plus" framework. We will continue to deepen the integrated development of the cultural and tourism sectors, keep innovating business forms related to tourism, and attract more people to visit Gansu to experience its diverse and high-quality tourism offerings.

Third, we will work to boost consumption. During this year's Spring Festival holiday, Guazhou, Yumen and other areas were unexpectedly hit by snow and sandstorms, leaving many tourists stranded. However, they found solace and comfort in the local community, and the hospitality of Guazhou people attracted significant attention online. Gansu people are known for their simplicity, honesty, warmth and hospitality, and always offer the best to their guests. We must cultivate and pass on these qualities, making Gansu's cultural and tourism industry more vibrant and welcoming, so visitors can come with high expectations and leave satisfied.

In a few days, Gansu will host the annual China Public Fuxi Memorial Ceremony. Moreover, in the second half of the year, we will hold the Silk Road (Dunhuang) International Cultural Expo. We warmly welcome friends from across the country to visit Gansu. Begin your journey with a bowl of Tianshui malatang and savor authentic Lanzhou beef noodles, and experience the rich and diverse flavors of Gansu. Thank you.

Phoenix TV:

Mr. Ren, nice to see you again. The 6.2-magnitude earthquake in Jishishan late last year was highly concerning. How is the post-disaster recovery and reconstruction work progressing in Gansu half a year later? And what plans do you have for the future? Thank you.

Ren Zhenhe:

Thank you for your concern for the people affected by the earthquake in Jishishan. I would like to invite Mr. Cheng to answer this question.

Cheng Xiaobo:

After the earthquake, with the deep care of the CPC Central Committee with Comrade Xi Jinping at its core, aid from all over the country quickly arrived in the disaster-affected areas. We completed emergency rescue operations in a very short time and resettled the affected people. During that time, the profound love and support from all corners of the country converged upon Gansu. The scenes of compassion and support were deeply moving and heartwarming. Let me now provide an overview of the post-disaster recovery and reconstruction efforts.

The CPC Central Committee and the State Council attach great importance to the recovery and reconstruction of Jishishan county. Under the support of various national ministries and commissions, the National Development and Reform Commission took the lead in drafting the overall reconstruction plan, and Gansu province also formulated special plans and action plans. According to the overall plan, the entire reconstruction will be completed in three years. The main tasks include: first, rebuilding and repairing residential housing to ensure safe living conditions for the people; second, developing infrastructure including for transportation, water conservancy, electricity and communications to make travel and daily life more convenient; third, enhancing public services like education and healthcare to make schooling and medical treatment more accessible; and fourth, promoting industries with local features to increase people's incomes and their quality of life.

This year, in addition to coordinating post-disaster reconstruction efforts, we are focused on two key objectives. First, we will ensure that people relocated to the resettlement sites move into their new homes before Oct. 1, so that those affected can celebrate National Day in their safe and comfortable new houses; second, we will ensure that newly built schools are put into use before Sept. 1, so that children can start the new semester in bright and spacious classrooms.

I would like to introduce two guiding principles in our planning and construction process. First, we fully respect the people's wishes. For example, in terms of house design, we have extensively gathered feedback from residents and offered seven types of apartment and four types of single-story houses to provide ample choices. Second, we ensure the quality of the construction. This is both our goal and bottom line for reconstruction. We aim to make the post-disaster reconstruction projects into high-quality and reliable projects that win the hearts of the people.

Over the past six months, we have advanced the reconstruction work in the disaster-affected areas as quickly as possible. If you visit Jishishan county, you can see bustling construction sites, with vehicles constantly shuttling back and forth, and rows of towering cranes. It can be said that every brick, tile, road and house in the disaster-affected area reflects the support and care from all sectors of society. This is also the source of our confidence to complete the task of reconstruction on time and to a high standard. We firmly believe that with the strong leadership of the CPC Central Committee and the State Council, the robust support of all sectors of society, the dedicated attention of the media, and the hard work and self-reliance of local officials and residents, the areas affected by the earthquake will be turned into an even more beautiful home. Thank you.

CCTV:

Gansu was once the province with the most challenging poverty alleviation tasks in the country. Having won the battle against poverty, how will Gansu consolidate its achievements and prevent a large-scale return to poverty? What measures will be taken to promote comprehensive rural revitalization? Thank you.

Ren Zhenhe:

Thank you for your questions. The issues you raised are very important for Gansu. In the past, Gansu was known as a "place of great hardships." After winning the unprecedented battle against poverty, Gansu is no longer a place of bitter hardships, but a land of happiness.

In recent years, we have firmly committed to the bottom-line task of preventing a large-scale return to poverty. On one hand, we have focused on consolidating and expanding our achievements, and on the other hand, we have promoted comprehensive rural revitalization. We continue to give a leg up to people who have been lifted out of poverty. We adhere to the use of development methods to consolidate and expand the hard-won achievements of poverty alleviation and accelerate the transformation of Gansu from a large agricultural province to a strong agricultural province. The per capita disposable income in rural areas that have been lifted out of poverty in the province increased from 9,385 yuan in 2020 to 12,107 yuan in 2023, with an average annual growth rate of 8.9%. Next, we will focus on two areas:

In consolidating and expanding our achievements, we will make good use of "two forces." The first is to stimulate internal force. We will ensure that although absolute poverty has been eliminated, all the related responsibilities, policies, support and oversights remain in place. We will encourage and guide people who have just shaken off poverty to increase their incomes through employment, industry and entrepreneurship, thereby enhancing their internal driving force for self-development. We will innovate and improve the "Gansu One-Click Poverty Reporting" mechanism, using digital means to strengthen dynamic monitoring to prevent people from falling back into poverty, and promptly identify, intervene and assist those prone to returning to poverty. The other is to make good use of external force. We will deepen cooperation between eastern and western regions and advance targeted assistance from central departments and organizations. With the support of Tianjin, Shandong and 37 central departments and organizations, we will strengthen industrial assistance, labor cooperation, joint project construction and talent exchange, jointly writing a new chapter of east-west cooperation in the new era.

In terms of comprehensive rural revitalization, we will focus on painting "two pictures." One is a picture of building a harmonious and beautiful countryside. We will learn from and apply the experience of the Green Rural Revival Program in Zhejiang province and solidly carry out the creation of a harmonious and beautiful countryside with the main features of "beautiful villages, thriving industries, good governance, harmonious atmosphere, prosperous people and strong collectives." We will certify around 100 provincial-level harmonious and beautiful villages each year through a region-specific and category-based approach, highlighting idyllic plains, beautiful mountain villages, poetic wetlands, unique Tibetan ethnic areas on the plateau, and traditional villages rich in culture. Together we will paint a picture of a beautiful Gansu for all regions to prosper individually and collectively. The other is a picture of fostering industries with local features. As for Gansu's agriculture, the brand "Ganwei" (Honest Gansu, Authentic Flavor) has topped the China Regional Agricultural Brand Influence Index for three consecutive years. This is perhaps unexpected but also reasonable: First, in terms of growing vegetables in the Gobi Desert, Gansu has two of China's top 10 vegetable bases, namely Zhangye and Lanzhou, with the largest highland summer vegetable planting area and production in the country. Second, corn seed production is significant, with Gansu being the largest corn seed production base in the country, producing one out of every two corn seeds in China. Third, its geo-authentic medicinal materials are well-known, with Gansu being called a "natural pharmacy" and "thousand-year-old medicinal hometown." The province has the largest area and production of cultivated Chinese medicinal materials in the country, and is China’s only comprehensive pilot zone for traditional Chinese medicine industry development. To ensure that these resources from Gansu fetch good prices and enrich the local people, we will comprehensively strengthen the construction of a strong agricultural province, deeply develop local specialty products, cultivate and strengthen one or two leading industries in each county, leverage specialty brands, extend industrial chains, and increase added value, so that "Ganwei" agricultural products can sell well domestically and globally.

Thank you.

Science and Technology Daily:

We know that Gansu has rich solar and wind energy resources. How will Gansu develop the new energy industry? And how does Gansu plan to optimize the development and utilization of these resources? Thank you.

Ren Zhenhe:

Thank you for your questions. New energy is both an advantage and a characteristic of Gansu. I would like to invite my colleague Mr. Cheng to answer these questions.

Cheng Xiaobo:

As the reporter just mentioned, Gansu is indeed a major province in terms of wind and solar resources. Our technologically exploitable development in solar and wind energy both ranks among the top in the country. Especially since the beginning of the 14th Five-Year Plan period, we have seized various policy opportunities for national green transformation, riding on the back of rich clean energy resources to soar to new heights, and promoting the vigorous development of the new energy industry. Currently, the total installed capacity of new energy in the province exceeds 56 million kilowatts, accounting for more than 60% of the total installed capacity of electricity, a proportion ranking second in the country. The regions receiving power from Gansu have already expanded to 25 provinces, with Gansu exporting more than 52 billion kilowatt-hours of electricity annually, nearly half of which is new energy. The Hexi Corridor was once a place of desolation and oblivion. Now it is thriving, undergoing transformation, and showing great potential for further developing wind and solar energy. 

Gansu has experienced rapid development in the new energy sector, and still has huge potential to realize in the future. Next, we will focus on building an important national base for new energy and new energy equipment manufacturing, transforming the province from a large producer of wind and solar energy to a strong competitor in the sector. We will continue to make efforts in four key areas:

First, to expand the scale. We will focus on building large bases in sandy, rocky and barren areas, accelerating the construction of various wind and solar power projects at all levels. We aim to exceed 80 million kilowatts of installed new energy capacity by the end of next year, when the 14th Five-Year Plan period will complete, as well as 130 million kilowatts by the end of the 15th Five-Year Plan period. What does 130 million kilowatts mean? It's equivalent to six Three Gorges Dam.

Second, to open channels. With a large scale and increased electricity generation, building outbound transmission channels has become a key issue. Our first channel is the Jiuquan-Hunan ultra-high-voltage direct current (UHVDC) project, completed in 2017. The second channel is the Gansu-Shandong project, which started construction last year and will be completed next year. The third channel is the Gansu-Zhejiang project. With preparatory work already completed, construction is expected to be approved soon. The fourth channel is the Gansu-Sichuan project, which is also expected to start construction by the end of this year. By the midterm of the 15th Five-Year Plan period, these four UHV lines will all be operational, allowing Gansu to send at least 160 billion kilowatt-hours of electricity nationwide, which is equivalent to the current annual electricity consumption of the entire province.

Third, to develop industries. We will focus on building an industrial development structure, centering around Jiuquan and Jiayuguan, coordinating Zhangye, Wuwei, and Jinchang, and boosting cooperation among cities and prefectures east of Yellow River, to leverage multiple layers of driving forces. A 100-billion-yuan industrial cluster will be created to enable coordinated development of wind and solar power industrial chain and related industries. 

Fourth, to promote consumption. We need to make full and effective use of locally generated electricity within the province itself, which requires vigorously developing local industries as well as developing peak-shaving power sources and new ways of storing energy, particularly integrating the power grid with the computing network. We aim to build a national hub for the integrated computing power network, namely the Qingyang data center in Gansu, to create a national computing power assurance base. In short, we will not only develop the new energy industry to convert resource advantages into economic advantages but will also ensure that the wind and solar energy of Gansu illuminates thousands of households, contributing more to the security of the national energy supply and demonstrating Gansu's commitment. Thank you.

The Paper:

Gansu is vast and of significant ecological importance, but its natural conditions are complex with the ecological environment being relatively fragile. My question is what measures has Gansu taken to promote ecological progress? How can it further solidify its ecological security barrier? Thank you.

Ren Zhenhe:

Thank you for your concern about the ecological progress in Gansu. I will let my colleague, Mr. Lei, answer this question.

Lei Siwei:

Thank you for your interest in Gansu's ecological civilization construction. Gansu has many ecological symbols, which can primarily be summarized by the elements of mountains, water and soil. The mountains refer to the Qilian Mountains, which nourishes the oases of the Hexi Corridor and blocks the convergence and southward invasion of the Tengger, Badain Jaran and Kumtag deserts. The water refers to the Yellow River, which originates in Qinghai and flows through Gansu, forming the world-renowned First Bend of the Yellow River in Maqu County, Gannan. The soil refers to the Loess Plateau, which covers one quarter of the province's area.

In recent years, Gansu has treated ecological and environmental protection as a paramount task, striving to create a beautiful and picturesque Gansu. We are dedicated to safeguarding the Yellow River. By fully implementing the national strategy for the Yellow River, we have initiated major ecological projects such as water source conservation, water and soil conservation, and water saving and conservancy. We have steadily advanced the integrated protection and restoration of mountain, water, forest, farmland, grassland, and desert ecosystems in the water source conservation area of the upper reaches of the Yellow River in Gannan. The water quality of the sections of the Yellow River flowing out of the province has remained at Class II for eight consecutive years. The beauty shared among the surrounding regions of the Yellow River basin has become a splendid calling card for Gansu Province. We are dedicated to protecting the green, ecological environment. By deeply learning from the lessons of ecological damage in the Qilian Mountains of Gansu, we remain constantly vigilant, ensuring we never forget past mistakes. We have established a mechanism for regular supervision and monitoring of protection across all domains. The vegetation index of the Qilian Mountains nature reserve has increased by 10.88%. Nearly 80% of Gansu's land area is included in the shelterbelt program in northeast, north, and northwest China. We are fully committed to fighting critical battles along the Hexi Corridor and the edge of the Taklamakan Desert, as well as the challenges posed by the Yellow River's Ji-shaped bend. The first batch of key projects under the shelterbelt program in northeast, north and northwest China have been launched, aiming to reclaim over 67% of treatable desertified land in the province by 2030. We are fully committed to one battle. We are taking further steps to prevent and control pollution, conducting clean air actions, taking more robust and comprehensive measures to improve river basins and water quality control, and implementing measures to prevent and control soil pollution at its source. The provincial capital of Gansu, Lanzhou, has evolved from a city once invisible from satellites to a city visible under the blue sky.

Gansu Province holds significant ecological importance, but its ecological foundation is also highly fragile. We will continue to carry forward the contemporary Yugong spirit of the three generations of "six old men" at Babusha Forest Farm, who dedicated themselves to afforestation and desert control. We treat the environment like it is our lives and protect the environment like we protect our eyes. We aim to make the skies bluer, the land greener, waters clearer and the mountains and rivers more beautiful across the Loess Plateau. By fortifying the ecological security barrier in western China, we strive to make Gansu into the "poetry and faraway place" that people aspire to.

Thank you.

Zhonghongwang.com:

Gansu is a traditional old industrial base facing the arduous task of shifting the growth model and adjusting economic structure. How is Gansu promoting the transformation and upgrading of the old industrial base? What measures have been taken? How effective are the measures? Thank you.

Ren Zhenhe:

Thank you for your concern and attention to Gansu's old industrial base. As an important old industrial base in China, Gansu has experienced a period of passionate development during the "First Five-Year Plan," "Second Five-Year Plan" and the era of "the Third Front" construction after the founding of the People's Republic of China. It witnessed the birth of several national firsts, such as the country's first refined oil products, the first synthetic rubber and the first large-scale oil drilling rig. These achievements laid a relatively solid foundation for its industrial development. In recent years, we have focused on supporting the development of leading companies, enhancing supply chains and fostering industrial clusters to promote the growth of traditional industries and the emergence of new industries. Our efforts have been directed towards building a modern industrial system with distinctive characteristics of Gansu province. The growth rate of the added value of industrial enterprises above designated size in the province has remained above 6% for five consecutive years, and the growth rate of industrial investment has ranked among the top in the country for three consecutive years. The old industrial base is experiencing a renaissance, rejuvenating with vitality and vigor.

In terms of supporting the development of leading companies, we implement approximately 300 high-end, intelligent and green transformation projects on a rolling basis each year. Through measures, such as equipment upgrades, technological innovation, energy conservation and emissions reduction, digital transformation and more, we continuously strive to enhance the industrial structure and development capacity. Currently, Gansu ranks third in the world in nickel output and fifth in cobalt output. You might also be surprised to learn that Gansu has high-end enterprises in the industrial chain of the chip sector, with chip packaging and testing technologies reaching world-leading levels.

In terms of promoting the development of industrial chains, we have strengthened weak links, given full play to advantages, upgraded traditional industries as well as boosted emerging industries. We have fully implemented the "industrial chain chief" scheme, focusing on 14 key industrial chains and cultivating 114 chain-leader enterprises in three years. According to the market theory of "raw material should be made into material, material should be made into tools, and tools should be functional," we have taken the chain-leader enterprises as the main body, targeted the missing sectors in industrial chains, broken through bottleneck technologies and have developed high value-added key products. By doing so, technological achievements have quickly turned into products; products have helped to form industries and industries are expected to establish industrial chains.

In terms of boosting the development of industrial clusters, we have leveraged collective strengths to expand and extend various industrial parks, gathering production factors, projects and industries into clusters. We have built three advanced manufacturing industrial clusters at the national level in petrochemical engineering, non-ferrous metallurgy and new energy and new energy equipment manufacturing. Jiuquan city in Gansu has become the largest on land wind power equipment manufacturing base in China.

Gansu province was strong in industries in the past, and will surely regain its development momentum in the future. We will propel industrial innovation through sci-tech creation, advance the transformation and upgrading of traditional industries like petrochemical engineering and non-ferrous metallurgy, drive emerging industries such as new energy, new materials, biomedicine and data information as well as create a layout for future industries, including artificial intelligence and quantum technology. We will accelerate the development of new quality productive forces in line with local realities and, through "innovation" and "high quality," make industries strong engines for the province's overall development.

Thank you.

China Daily:

We all know that Gansu is a province with large mineral resources, and its reserves of many minerals rank first in the country. What has Gansu done in the exploration and development of mineral resources? What are the next steps being considered? Thank you.

Ren Zhenhe:

Thank you for your interest in the development and utilization of mineral resources in Gansu. Gansu is a province rich in mineral resources. We are capable to make contributions to foster a unified national market as well as a new development dynamic with the domestic economy as the mainstay, with the domestic economy and international engagement both providing mutual reinforcement. My colleague Mr. Lei will answer your questions.

Lei Siwei:

Thank you for your questions. Just as Mr. Ren mentioned, Gansu is a treasure house of energy and resources, being well-known as the "hometown of non-ferrous metals" across the country. At present, more than 190 kinds of minerals have been discovered in the province, 134 kinds of which have been identified with reserves. Among them, the reserves of 12 kinds of mineral resources, such as nickel, cobalt and platinum, rank first in the country. Each kind of mineral has the potential and prospect to foster an industrial chain and even drive a large-scale industry. In recent years, we have made full use of Gansu's capabilities to comprehensively improve the quality of exploration, development and supply of mineral resources to meet the needs of the country. While promoting our own high-quality development, we have actively contributed to the nation's overall development.

All efforts have been made to discover as many minerals in the province as we can. We have vigorously carried out a new round of strategic campaign on mineral exploration, implementing it in a scientific and coordinated manner. Since the 14th Five-Year Plan started in 2021, Gansu's cumulative investment in geological exploration has ranked among the top in the country. We formed a mineral exploration structure in the province that is led by fiscal funds and is widely participated in with broad social capital. For example, currently identified reserves of coal resources in Gansu rank sixth in the country, with the coal output in 2023 nearly double compared to three years ago.

We try our best to fully utilize all the resources that have been found. We have established a normalized mechanism for the allocation of mining rights, promoted transformation and have increased revenue, so as to attract more companies to participate in the exploration and development of mineral resources. Thanks to market means and efficient resource allocation, an industrial cluster in mining development has been created covering all links related to prospecting, transferring, mining and utilization, which has transformed resource advantages into economic and development advantages to the greatest extent. At present, the scale and intensiveness of mining in the province have been significantly improved, and the structure of resource development and utilization has been further optimized. The mining economy has gradually become a powerful support to regional development.

Simultaneously, we are committed to green development. We are better coordinating our efforts in exploring mines and protecting the environment, consistently applying the concept of green development throughout the whole process of mineral exploration and development. We promote the application of green exploration technologies, apply green mining techniques and enhance greening efforts in mining areas. We have taken the lead in establishing a system of green mine standards nationwide. It is expected that 90% of large mines and 80% of medium-sized mines in the province will meet the standards for green mining by 2028.

In the next step, we will implement the new development philosophy in a complete, accurate and comprehensive manner. With the goal of enhancing our capacity to ensure mineral resource security, we will focus on the overall situation, keep an eye on key minerals, and continuously promote a new round of strategic actions to make breakthroughs in mineral exploration. We will advance our efforts in the exploration, development and production of important energy and mineral resources. Through more policy support, technology application and flexible mechanisms, we aim to promote the high-quality development of the mining industry with more efforts and make greater contributions to ensuring the security of national energy and resources. Thank you.

Shou Xiaoli:

Please continue with your questions. There are two more reporters raising their hands. We have our last two questions.

N Videos at Southern Metropolis Daily:

It's graduation season again. We have noticed that Gansu for consecutive years has issued policies to support college graduates in finding employment at the grassroots level and in enterprises. May I ask what other practical and effective actions have been taken in promoting employment? What are their results? Thank you.

Ren Zhenhe:

Thank you for your interest in our current employment efforts. Employment is the most basic component of the people's wellbeing. It is also a top priority of our work. Mr. Zhang Jingang is in charge of this work. I invite him to answer.

Zhang Jingang:

Thank you for your question. Employment is one of the most important tasks for the provincial Party committee and the provincial government. As Mr. Ren mentioned earlier, employment is the most basic component of the people's wellbeing, concerning the country's development and the people's life and happiness. In recent years, employment in Gansu has overall shown growing trends, with more than 300,000 new jobs created annually. This is an assured figure that can only increase and is not allowed to decrease. We have mainly done three aspects of work.

First, we have built platforms. That is, we have made every effort to stabilize and expand job positions, providing stages and platforms for entrepreneurship. In this regard, we have implemented an action plan to serve over 1,000 enterprises that have maintained job demand, providing support, such as financial assistance and services that protect their rights, to encourage them to offer more jobs. For example, the "Longyuan Employment Loan" service precisely guarantees financing needs of enterprises that create a number of jobs, maintain stable work positions and comply with employment regulations. It focuses on supporting the real economy and micro, small and medium-sized enterprises in order to stabilize and expand employment. In the past two years, it has issued loans to more than 2,400 enterprises, totaling nearly 5 billion yuan.

Second, we have built bridges between jobseekers and enterprises. We take various measures to "build bridges and pave roads" in order to better match job supply and demand. In this regard, except for carrying out traditional activities, such as vocational skills training, entrepreneurship and innovation competitions, we have also explored some distinctive events based on our own conditions. For example, since 2022 we have launched livestream events, inviting over 430 officials from human resources and social security departments to interpret policies and promote jobs. Such efforts have provided nearly 2 million job opportunities.

Another aspect is that we have expanded employment channels. We make every effort to stabilize and expand employment among key groups, hence promoting overall, high-quality, and sufficient employment. For example, in terms of graduate employment, we support 10,000 unemployed graduates to find employment at the grassroots level each year, which has been one of our top 10 tasks to improve the people's wellbeing for 15 consecutive years. Our efforts aim to guide them to work at the grassroots level and in enterprises. For those who have been lifted out of poverty, we have enabled them to find employment near their homes — in rural factories or through public welfare employment programs.

Next, we will make greater efforts to carry out our employment priority strategy, fully implement policies to reduce burdens, stabilize jobs and expand employment, enhance the role of industries to drive employment, and expand employment channels. We will continuously promote employment among key groups, and work to address labor shortages in certain sectors in order to better meet employment market demands. We will ensure that those who need jobs can find them, make it easier for enterprises to recruit workers, and continuously enhance citizens' sense of fulfillment, happiness, and security.

Thank you.

Shou Xiaoli:

The last question, please.

The Poster News APP:

Gansu has served as a strategic gateway and important trade hub on the Silk Road since ancient times. How will the vibrant landscape of Gansu be depicted in the future development of the Belt and Road Initiative (BRI)? Thank you.

Ren Zhenhe:

Thank you for your question. The BRI presents Gansu with its greatest opportunity. As we all know, Gansu has embraced openness throughout its history. The Hexi Corridor is a major channel open to the west, while the ancient Silk Road stretched over 1,600 kilometers through Gansu, accounting for one-fifth of its total length. Some say that Xinjiang is too far away, but I say that it is not Xinjiang that is too far away, it is Gansu that is too long. Since the Han and Tang dynasties, goods from the East and West have been distributed and circulated in Gansu. This led to a seamless integration and fusion of Eastern and Western cultures within the province, creating a situation whereby envoys and merchants were constantly crossing paths, and trade flourished.

In recent years, we have seized the greatest opportunity brought by the BRI, actively integrated into and served the new development paradigm of "dual circulation," which takes the domestic market as the mainstay while allowing domestic and international markets to reinforce each other, and accelerated the construction of a new open pattern that takes into account both internal and external factors, integrates land and sea, and is westward-oriented and multi-pronged. At present, a total of 21 international freight train routes have been opened and put into operation, covering more than 20 countries and regions in Europe, Asia, Africa and elsewhere. Gansu's "steel camel caravans" are fully loaded with goods and frequently travel between BRI partner countries, and the total value of imports and exports to BRI partner countries accounts for more than 70% of Gansu's total foreign trade. In recent years, Gansu's agricultural product exports have made significant breakthroughs every year. Unique agricultural products from Gansu, such as highland summer vegetables, Lanzhou lily bulbs, Jingning apples, Pingliang red cattle, Dingxi wide noodles and Longnan olive oil have not only gained popularity domestically, but have also crossed the oceans and been served on tables overseas.

Next, we will be guided by the eight major measures for supporting high-quality Belt and Road cooperation and focus on the following three aspects. In terms of strengthening channels, we will actively integrate into the construction of the New International Land-Sea Trade Corridor, vigorously promote the construction of railways, highways and airports, expand the hub functions of international land ports and airports, and actively build the Air Silk Road. In terms of expanding foreign trade, we will carry out four major actions to cultivate foreign trade markets, improve new foreign trade business forms, build foreign trade bases and expand foreign trade products. We will also vigorously expand the markets of the Belt and Road partner countries and RCEP countries, expand exports of specialty products, continue to expand the scale of processing trade and trade in services, encourage enterprises to go out and explore overseas markets, and improve the quality and effectiveness of international freight trains. In terms of promoting cooperation, we will deepen exchanges and cooperation with Belt and Road partner countries in the fields of sci-tech innovation, digital development, cultural tourism, medical health and ecological protection, accelerate the construction of Dunhuang studies and world cultural heritage protection models, hold the Silk Road (Dunhuang) International Cultural Expo and China Lanzhou Investment and Trade Fair, expand people-to-people exchanges and friendly interactions, open our arms wider to embrace the "greatest opportunity," and present Gansu to the world to let the world know Gansu.

Friends from the media, most people have the impression that Gansu is far away. What I want to say here is that Gansu is not actually that far away. If you visit Gansu, taking the provincial capital Lanzhou as an example, it takes less than one hour by plane from Xi'an, Yinchuan, Chengdu, Chongqing and other surrounding cities, and only two hours from major domestic cities such as Beijing, Nanjing, Wuhan and Zhengzhou. Even provincial capitals such as Harbin, Guangzhou and Fuzhou, which are considered to be farther away, can be reached in just three hours. We welcome everyone to visit Gansu, appreciate the magnificence of the Loess Plateau, the vast grasslands, the boundless rocky areas, and the pure glaciers, experience the profoundness of Chinese civilization, and the diverse charm of Gansu.

We are waiting for you in Gansu. Gansu welcomes you. Thank you.

Shou Xiaoli:

Thank you, Mr. Ren, all of the speakers, and all of the journalists taking part today. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Xu Xiaoxuan, Guo Yiming, Zhu Bochen, Cui Can, Mi Xingang, Xiang Bin, Liu Caiyi, Lin Liyao, Wang Ziteng, Yan Bin, Wang qian, Ma Yujia, Zhang Junmian, Zhou Jing, Li Xiao, Liu Sitong, Huang Shan, Wang Yiming, Wang Wei, Li Huiru, David Ball, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers:

Mr. Lan Tianli, deputy secretary of the Communist Party of China (CPC) Guangxi Zhuang Autonomous Regional Committee and chairman of Guangxi Zhuang autonomous region

Mr. Xu Yongke, a member of the Standing Committee of the CPC Guangxi Zhuang Autonomous Regional Committee and executive vice chairman of Guangxi Zhuang autonomous region

Mr. Bai Songtao, director of the Development and Reform Commission of Guangxi Zhuang Autonomous Region

Mr. Wang Yongchao, director of the Commission for Industry and Information Technology of Guangxi Zhuang Autonomous Region

Chairperson:

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

Date:

June 12, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 29th press conference in the series "Promoting High-Quality Development." Today, we have invited Mr. Lan Tianli, deputy secretary of the Communist Party of China (CPC) Guangxi Zhuang Autonomous Regional Committee and chairman of Guangxi Zhuang autonomous region, to introduce Guangxi's accelerating efforts to build itself into a convenient hub for domestic and international businesses, and to build a splendid Guangxi in the new era, and take your questions. Also present today are Mr. Xu Yongke, a member of the Standing Committee of the CPC Guangxi Zhuang Autonomous Regional Committee and executive vice chairman of Guangxi Zhuang autonomous region; Mr. Bai Songtao, director of the Development and Reform Commission of Guangxi Zhuang Autonomous Region; and Mr. Wang Yongchao, director of the Commission for Industry and Information Technology of Guangxi Zhuang Autonomous Region.

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

Lan Tianli:

Good morning. I am delighted to have the opportunity to speak to you all on the high-quality development of Guangxi. Entrusted by Liu Ning, secretary of the CPC Guangxi Zhuang Autonomous Regional Committee, I would like to express my heartfelt gratitude and highest respect to all of you on behalf of the CPC Guangxi Zhuang Autonomous Regional Committee, the government, and the region's more than 57 million people of all ethnic groups for your long-term care and support for Guangxi.

Those who visit Guangxi are always amazed by its wonderful beauty. Guangxi is indeed a thoroughly charming place. Here, I would like to introduce Guangxi to you using six key phrases. The first phrase is "picturesque landscapes." The Lijiang River is one of the world's 15 most beautiful rivers, and Detian Waterfall is the largest transnational waterfall in Asia. Wang Zhenggong, a poet in the Southern Song dynasty (1127-1279), wrote the timeless line, "Guilin's scenery is the best under Heaven." Today, we can add another phrase: "Everywhere in Guangxi is like Guilin." It is a place of "poetry and distance" that people yearn for. The second phrase is "livability and longevity." Guangxi boasts beautiful ecology and long-living residents, being home to nearly 7,000 centenarians. Out of the 99 "longevity towns" in China, 37 are in Guangxi. The third phrase is "sweet business." Guangxi has been the nation's top sugar producer for 33 consecutive years, with two out of every three spoonfuls of sugar in China coming from Guangxi. Guangxi has also ranked No. 1 for fruit production in the nation for six consecutive years. Our mangoes, lychees, longans, kumquats, tangerines, passion fruits, dragon fruits, and Shatian pomelos are renowned nationwide. Guangxi serves as the "sugar bowl" and "fruit platter" of the nation. The fourth phrase is "national unity." Guangxi is the autonomous region with the largest population of ethnic minorities in China, where the sense of community for the Chinese nation is deeply ingrained in all ethnic groups. General Secretary Xi Jinping praised Guangxi as a national model area for ethnic unity and progress. The fifth phrase is "close to ASEAN." "Open the door and you are in Vietnam; take a few steps and you will enter ASEAN." Guangxi is the only province in China that is connected to ASEAN by both land and sea, making it the forefront and window of China's opening-up and cooperation with ASEAN. The sixth phrase is "prosperous canal." The Pinglu Canal, currently under construction in Guangxi, is the first river-to-sea canal project since the founding of the People's Republic of China and a flagship project on the New International Land-Sea Trade Corridor. Once completed, logistics between southwest and south-central China, the western regions, and ASEAN will become more convenient.

General Secretary Xi Jinping cares deeply about Guangxi's development and is concerned about the people of all ethnic groups in Guangxi. Since the 18th CPC National Congress, the general secretary has visited Guangxi three times, delivering many important speeches and issuing important instructions on Guangxi's work. He encouraged us to "free our minds, pursue innovations for change, seek ocean-oriented development opportunities, and promote open development," which has laid out a grand blueprint and injected strong momentum for "making concerted efforts to build a splendid Guangxi in the new era and striving to write a chapter of Chinese modernization in Guangxi."

Guided by the instructions of General Secretary Xi Jinping, we are determined to blaze new paths and make greater achievements in promoting high-quality development in border areas with mainly ethnic minority populations. The GDP increased from 1.13 trillion yuan in 2012 to 2.72 trillion yuan in 2023. We are committed to achieving excellence in developing strong industries. Focusing on industries with unique advantages as well as adapting to local conditions in order to develop new quality productive forces, Guangxi has cultivated ten industrial sectors and six specialty agricultural sectors, each with an annual output value of the whole industrial chain exceeding 100 billion yuan (about 14 billion U.S. dollars). This includes the metallurgical industry, automobiles, sugar and fruit. The number of industrial enterprises above designated size has exceeded 10,000 while the foundation for high-quality development has been continuously consolidated. We have continued to open wider to the outside world. For the last 20 years, we have hosted the China-ASEAN Expo and the China-ASEAN Business and Investment Summit. ASEAN has been Guangxi's largest trading partner for 24 consecutive years. The position and role of Guangxi in the overall structure of national opening up have both become increasingly prominent. We have made every effort to build a major ecological barrier in the southern region of the country. Upholding the principle that lucid waters and lush mountains are invaluable assets, we are dedicated to improving the protection of mountains and rivers of Guangxi. Guangxi's ecological environment has continued to improve, ranking in the forefront of the country. The province's mangrove forest ranks second in the country while the richness of our biodiversity ranks third in the country. New progress has been made in green development. We have continued to improve people's well-being. About 80% of the fiscal expenditure is used to improve people's livelihoods and projects are implemented every year to address people's practical concerns. We have continued to consolidate and expand the achievements in poverty-alleviation and have taken solid steps in promoting all-around rural revitalization, so that the lives of people in Guangxi have become more prosperous.

On this new journey, we will take high-quality development as the top priority, strive to promote the construction of "one zone, two areas, one park and one corridor" and make great efforts to write a Guangxi chapter of Chinese Modernization. "One zone" refers to building a demonstration zone for forging a strong sense of community for the Chinese nation. We must continue to take a pioneering role in promoting ethnic unity and progress by playing an exemplary role. One of the "two areas" refers to building a convenient place for business operation and the dual circulation of both domestic and international markets. Leveraging the unique geographical advantage of a gateway to ASEAN countries, as well as constructive interactions with the east, central and west regions, we have continued to improve the level of facilitation in investment, trade and other aspects. The other of the "two areas" refers to building an important strategic hinterland for Guangdong-Hong Kong-Macao Greater Bay Area. We fully integrate into the innovative, industrial, supply, capital and talent chains of the Greater Bay Area. "One park" refers to building an industrial park along border and port areas. We are systematically undertaking industrial transfer, accelerating the establishment of secure and stable cross-border and cross-regional industrial and supply chains. "One corridor" refers to jointly building the New International Land-Sea Trade Corridor at a high standard. We have constructed the Pinglu Canal with high standards and high quality, accelerated the construction of the railway from Huangtong to Baise, built the international gateway port of Beibu Gulfand havesped up the construction of the New International Land-Sea Trade Corridor, connecting ASEAN countries with the shortest time, the best service and the best price.

That's all for my introduction. My colleagues and I will now answer questions from journalists. Thank you.

Xing Huina:

You are now welcome to raise questions. Please identify the news organization you represent before asking your questions.

China Daily:

Just now, Mr. Lan mentioned that Guangxi has been continuously expanding opening up to the outside world and speeding up the building of a convenient place for business operation and the dual circulation of domestic and international markets. Could you elaborate on how this "convenient place" works? What are the specific measures? Thank you.

Lan Tianli:

Thank you for your questions. We understand that the country has entrusted Guangxi with the important mission of building a convenient place for business operation and the dual circulation of domestic and international markets, hoping that it can leverage its unique geographical advantages to better serve and integrate into the new development pattern while also promoting high-quality development through high-level opening up. The construction of this "convenient place" means vigorously improving the level of convenience in investment, trade, consumption, capital flow, personnel exchange, logistics and transportation. To this end, we will make efforts in the following aspects:

We will build a three-dimensional and efficient connectivity system. On the basis of connecting counties with expressways and cities with high-speed rail, we have built 36 highways that connect to other provinces, the sea and border areas. High-speed trains can reach 20 other provinces in the same day. The port of Beibu Gulf is connected to over 200 ports in more than 100 countries and regions worldwide. The aviation network reaches all ASEAN countries. We have basically formed a modern three-dimensional transportation structure integrating rivers and seas, combined transportation of sea and rail, coordinated development of water and land routes, and seamlessly connected air and ports, achieving fast and convenient access to the river and sea in the western region. Currently, we are accelerating the China-Vietnam smart port program. After the completion of the smart port, 24-hour uninterrupted, unmanned and intelligent customs clearance for goods will be realized. Goods from Nanning to Hanoi in Vietnam will be delivered within 24 hours, and goods to the four northern border provinces of Vietnam will be delivered within 12 hours.

We will build cross-border and cross-regional industrial and supply chains. We will build industrial parks along border and port areas and China-ASEAN industrial cooperation zone, as well as accelerate the development of cross-border and cross-regional industrial and supply chains within the Guangdong-Hong Kong-Macao Greater Bay Area-Beibu Gulf economy zone and ASEAN. For example, Qinzhou has formed a petrochemical industry led by China National Petroleum Corporation and Guangxi Huayi New Material Co., LTD, and has initially established cross-border industrial chain cooperation with many ASEAN countries in the fields of chemical industry and new energy materials.

We will steadily expand institutional opening-up. Over the past years, we have established China-ASEAN mechanisms covering more than 40 areas including transportation and trade through the China-ASEAN Expo platform, and the Guangxi Pilot Free Trade Zone has explored 169 institutional innovations and promoted those practices across the country. We will comprehensively align with trade and economic rules under the Regional Comprehensive Economic Partnership (RCEP), steadily expanding institutional openness in rules, regulations, management and standards to attract the aggregation of various factors, such as talents, capital, information, technology and others.

We will continue to improve the business environment. Guangxi has basically achieved the goal of "at the most having to visit one time" for government services. Starting a business requires only two steps and can be completed in just one day. A survey of the business environment among 10,000 private enterprises in 2023 conducted by All-China Federation of Industry and Commerce shows that Guangxi ranks among the top five provinces with the most significant improvement in the business environment. We will continue to optimize government services, production factors, law-based governance, the market and the environment for innovation, deepen the "Business-Friendly Guangxi" initiative, further reduce costs associated with production factors, logistics and institutional transactions as well as strive to create a first-class business environment that is market-oriented, law-based and internationalized.

Thank you.

Cover News:

As mentioned earlier, the Pinglu Canal is under construction and serves as the backbone project of the New International Land-Sea Trade Corridor. What progress has been made with the construction of the project currently and how will Guangxi ensure the successful construction of this canal? Thank you.

Lan Tianli:

I would like to invite Mr. Xu to answer it.

Xu Yongke:

Thank you for your questions. As Mr. Lan introduced earlier, the Pinglu Canal, with a total investment of approximately 72.7 billion yuan, will be primarily completed by the end of 2026 and is expected to handle ships of up to 5,000 metric tons. Currently, more than half of the earthworks have been excavated, with nearly half of the investment utilized. Construction is progressing smoothly in all aspects. For this canal, I would like to introduce it in three sentences: First, "a river of spring water flows southward." Guangxi boasts a well-developed water system with approximately 80% of its water flowing into the Xijiang River before surging eastward into the sea. The Pinglu Canal, cutting through mountains and heading southward to the sea, will fundamentally change the current situation in Guangxi, where coastal areas lack direct river access to the sea. Second, "light boats easily pass through myriad mountains." In the southwestern region of China, where mountains are densely packed, transportation and logistics costs are high. According to estimates, goods from the southwestern region exported via the Pinglu Canal will shorten the distance by approximately 560 kilometers compared to the current waterway route. This is expected to further reduce transportation time and logistics costs. Third, "directing sails toward the vast sea." We are synchronously planning and constructing the Pinglu Canal Economic Belt to foster the concentrated growth of industries near ports, including petrochemicals, equipment manufacturing and new metallic materials. Once the canal is completed, 5,000-ton vessels can directly navigate from inland ports along the Xijiang River to coastal ports in China and major ports in Southeast Asia, enhancing connectivity between domestic and international markets. 

Next, we will continue to adhere to the principles of "connecting rivers and reaching the sea, comprehensive planning, one-time completion and systematic operations." We will fully leverage the supervisory roles of expert teams for quality project inspection, green project inspection as well as clean project supervision and guidance. With high standards and quality, we will construct high-quality, environmentally friendly and corruption-free projects. In terms of high-quality projects, we are accelerating the construction of the world's largest inland water-saving ship lock, boasting the highest water transmission efficiency with a water-saving rate exceeding 60%. We are also creating an integrated smart canal system for construction, management and maintenance, achieving a real-time overview of the canal, intelligent control and scheduling, and one-touch access to logistics services. Moreover, we are intensifying research and application efforts focused on sustainable critical materials, aiming to establish projects characterized by long-lasting quality and safety. In terms of green projects, we are rigorously implementing environmental protection as well as soil and water conservation measures, aiming to achieve comprehensive utilization and balance of earthworks while maintaining a modest profit margin. We are striving to construct a green ecological canal characterized by smooth rivers, clear water, fish swimming, green banks, beautiful scenery and low carbon emissions. For instance, last year, we deployed the state-of-the-art "Tianjing" cutter-suction dredger to participate in the construction of the Pinglu Canal. Besides expediting project progress, our primary focus was environmental protection, aiming to minimize the impact on marine life in the operating area and the stability of embankments and adjacent slopes. In terms of clean projects, we are committed to strengthening supervision and guidance, focusing on key aspects, such as project bidding, funding support and conducting ongoing inspections.

With the river thriving, a myriad of industries will flourish. We believe that after the completion of the canal, it will undoubtedly present a grand scene of "one river connecting all parts of Guangxi to the sea."

Thank you.

Zhinews of Shenzhen Satellite TV:

We have noticed that Guangxi has been engaging extensively with the Guangdong-Hong Kong-Macao Greater Bay Area. Last month, Guangxi organized economic, trade and cultural exchange activities in Hong Kong and Macao, leading to the signing of letters of intent on comprehensive cooperation. Regarding further integration and exchange with the Greater Bay Area, what specific measures will Guangxi undertake to enhance the connectivity and exchange among those regions? Thank you.

Lan Tianli:

Thank you for your question. Mr. Bai will answer this question.

Bai Songtao:

Thank you for your question. Guangxi shares similarities with the Greater Bay Area in terms of geographical proximity, culture affinity and language. Nearly half of Guangxi's population speaks Cantonese, and there are over six million Guangxi residents working in Guangdong year-round, indicating immense cooperation potential. In recent years, we have actively integrated into the construction of the Greater Bay Area and are fully committed to becoming a crucial strategic hinterland for the Greater Bay Area.

We are striving to become a hub for transportation and logistics. In terms of passenger flow, Guangxi and the Greater Bay Area have formed a 3-hour high-speed rail traffic circle. You can depart Nanning in the morning for tea and business meetings in Guangzhou, then go shopping in Hong Kong and Macao in the afternoon, and return to Nanning in the evening to eat laoyou rice noodles. In terms of logistics, Beibu Gulf Port ranks among the top 10 ports in the country for cargo throughput. The Xijiang River golden waterway is a bustling shipping lane. In 2023, the Changzhou ship lock in Wuzhou recorded a total cargo volume of over 180 million metric tons, becoming China's largest ship lock on river waterways in terms of cargo transportation. We will accelerate the construction of comprehensive transportation channels connecting Guangdong and Guangxi, and reaching Hong Kong, Macao and ASEAN countries, and work to open up wider.

We are catering to industrial development of surrounding areas. We combine capital, technology, talent and other elements in the Greater Bay Area with Guangxi's advantages in areas such as location, resources and ecology. With industrial parks along the border and near ports and the China-ASEAN industrial cooperation zone as important carriers, we undertake industrial transfer from eastern regions in an orderly manner. More and more enterprises from the Greater Bay Area are now investing and settling in Guangxi. In 2023, over 30% of investment in Guangxi came from the Greater Bay Area.

We are striving to become a hub for sci-tech innovation. The Greater Bay Area has notable advantages in sci-tech innovation. We will deepen scientific and technological exchanges and cooperation, and comprehensively improve our sci-tech innovation ability and the transformation of sci-tech achievements, based on the platforms commissioned by the country, such as the ASEAN-oriented Cooperation Zone for Scientific and Technological Innovation, the demonstration zone for industry-education partnership featuring integrated development of industries, education and think tanks, as well as the China-ASEAN Technology Transfer Center.

We are striving to ensure the supply of resources and production factors. Endowed with abundant resources, Guangxi has become a crucial supply base for building materials, non-ferrous metals, agricultural and sideline products, as well as electricity in the Greater Bay Area. Also, 70% of the steel used in home appliances in the Pearl River Delta is produced in Guangxi. Guangxi is also an important "vegetable garden" for the Greater Bay Area. Currently, about 40% of fresh vegetables on the dining tables of Hong Kong and Macau compatriots are from Guangxi.

We are striving to create a better ecological environment. Guangxi is the water source and the ecological "back garden" of the Greater Bay Area. We continue to carry out comprehensive management of key river basins such as for the Xijiang River and Jiuzhou River, ensuring that water quality is stable and meets the requisite standards. Our goal is to make it a reality that "clear water flows eastward." As a water source for the Greater Bay Area, the Datengxia water conservancy hydropower project has cumulatively replenished more than 2.5 billion cubic meters of water for it, effectively ensuring water supply there.

That's all from me. Thank you.

Beijing Youth Daily:

Last winter, 11 children from Guangxi became a hit online, and were fondly dubbed the "little tangerines." The story about these kids traveling from Nanning all the way to the Northeast for a study tour has sparked a "two-way rush" between Guangxi and Northeast China. It has also cast a positive light on Guangxi's cultural and tourism industry, with many netizens visiting Guangxi for sightseeing. Could you please introduce the latest situation of Guangxi's cultural and tourism industry? Thank you.

Lan Tianli:

Thank you for your question. When it comes to the "little tangerines," we would like to express our gratitude. We want to thank our good friends in Northeast China for the love and care they showed for the "little tangerines." We want to thank netizens across the country for their online messages of concern and their continued attention to the "little tangerines," and also thank the "little Northeast Tigers," "little rime" and "little frozen pears" for boosting two-way tourism between the northeastern region and Guangxi. We would like to thank tourists both at home and abroad for visiting Guangxi, giving us the thumbs up, and expressing their love for Guangxi. Of course, as chairman of the autonomous region, I would also like to thank every Guangxi resident. Your warm hospitality is the most beautiful sight in Guangxi in the new era.

Magnificent Guangxi, the most beautiful landscape in the world. Guangxi's scenery is extremely picturesque. As I briefly introduced earlier: You can take a boat tour along the Lijiang River and experience the poetic and picturesque scenery. As a poem goes, "Sailing the waves, it feels as if you are in a painting." You can also explore the Leye-Fengshan UNESCO Global Geopark to learn the ancient geological history of the Earth. Boasting beautiful and romantic coastal scenery, Guangxi has over 1,600 kilometers of coastline, with more than 600 islands scattered over a sea area of about 40,000 square kilometers. You can stroll along Beihai Silver Beach, known as the No. 1 beach in the world, and climb the youngest volcanic island in China, Weizhou Island, enjoying the sunshine, beach and waves. Guangxi has magnificent and majestic frontier scenery. Three cities and eight counties in Guangxi border Vietnam, totaling a land boundary of over 1,000 kilometers. You can drive along the "most beautiful border road," experience the romance of "one step across two countries" at Dongxing Port, and then go to Pingxiang to appreciate the grandeur of the Youyi Pass, one of China's 10 most famous passes. Boasting colorful and diverse ethnic cultures, Guangxi is a place where folk songs from all over the world converge. You can brew a cup of Liubao tea, make a pot of oil tea, enjoy a bowl of rice noodles, and experience the unique charms of the Zhuang ethnic songs, Yao dances, Miao festivals, and Dong buildings. Guangxi is a natural paradise thanks to its blue skies, clear water, evergreen trees, blooming flowers and fresh fruit, and is home to long-lived people. You can explore the secrets of long life in Bama county, known as the Longevity Town in the world, and enjoy health benefits from Yao medicine and Yao medicated baths in Jinxiu county, also called the "global capital of Yao ethnic culture."

Guangxi offers beautiful scenery, and words cannot do justice to its beauty. Currently, we are accelerating the development of Guilin into a world-class tourism city and stepping up efforts to build Guangxi as a global tourism destination. We hope you can all visit and see for yourself.

To make travel easier in Guangxi, we launched the "Travel Guangxi" app and WeChat miniprogram. With just a few taps on your phone, you can plan travel routes, purchase discounted tickets, book discounted rooms, rent a car for self-driving tours, and buy Guangxi specialties. We welcome you all to visit Guangxi and enjoy its green mountains and clear waters.

Thank you.

21st Century Business Herald:

The automobile industry is an important pillar of Guangxi's economy. I come from Liuzhou, Guangxi. When I went home for the Chinese New Year this year, I noticed that new energy vehicles (NEVs) produced in Guangxi were everywhere on the streets of Liuzhou. What new measures is Guangxi taking to promote new industrialization and build a modern industrial system? Thank you.

Lan Tianli:

Thank you to the journalist from Liuzhou for your question. I would like to invite Mr. Wang to answer your question.

Wang Yongchao:

Thank you for your interest in Guangxi's industry. Over the past three years, Guangxi has vigorously implemented an industrial revitalization initiative, with total industrial investment exceeding 1 trillion yuan, growing at an average annual rate of 17.3%. The added value of industrial enterprises above designated size grew at an average annual rate of 6.5%, 0.6 percentage point higher than the national average. The high-quality development of the industrial economy is showing good momentum. The NEVs in Liuzhou you mentioned are mostly manufactured by Wuling. The company's cars are affectionately called "Amazing Wuling Cars" online due to their cost-effectiveness, practicality and high quality. They continually meet the people's needs, fulfilling the dreams of car ownership and prosperity held by generations. Wuling Motors is also a microcosm of Guangxi's industry continuously advancing toward higher standards, innovation and excellence. Building on our resource endowment and industrial foundation, we are focusing on competitive industries, concentrating advantageous resources and striving to excel in four key industrial areas:

"Original Brand" resource-based industries are being upgraded. Guangxi ranks among the top in the country for mineral resources such as aluminum, tin, antimony and indium. We have developed our distinctive resources into competitive industries. Industries such as steel, non-ferrous metals and food processing have all achieved industrial output values in excess of 300 billion yuan, marking a transition toward advanced and value-added processing of raw materials. For example, the aluminum industry has established a complete industrial chain from bauxite mining to deep processing of aluminum. Guangxi is capable of manufacturing ultra-thin electronic-grade aluminum foil, lightweight and high-strength aluminum materials for NEVs, and high-end precision aerospace aluminum alloys.

"Old Brand" traditional industries are transforming and breaking new ground. Mechanical and metallurgical industries are the traditional foundation of Guangxi's economy. We support enterprises in upgrading their products, innovating technologies and transitioning to digitalization, thereby achieving the advancement and development of traditional industries. Products and technical services from Guangxi are widely used in many well-known major projects and events, such as the cable net for the Five-hundred-meter Aperture Spherical radio Telescope (FAST), the high-strength steel reinforcement anchorage system for the Hong Kong-Zhuhai-Macao Bridge, the plateau loaders used in the Qinghai-Tibet Railway, and the engines of buses used at the Beijing Olympic Games and Winter Olympic Games.

"New Brand" emerging industries are developing rapidly. Traditional industries can also nurture new quality productive forces. We are promoting integrated industrial development, fostering the rejuvenation of existing industries and the emergence of new ones. These efforts have nurtured a group of emerging industries including new materials, new energy batteries and new energy vehicles, each with a scale exceeding 50 billion yuan. Strategic emerging industries now contribute over 30% to industrial growth.

"External Brand" foreign trade-oriented industries are growing rapidly. Guangxi is developing into a convenient hub for both domestic and international markets. We support enterprises in building cross-border industrial and supply chains, attracting a large number of companies to establish import and export processing and manufacturing bases oriented toward ASEAN. Exports of large-scale machinery and equipment, automotive components, textiles and apparel, electronics and other products manufactured in Guangxi are experiencing rapid growth.

Starting this year, Guangxi will embark on a new three-year industrial revitalization initiative. We will focus on promoting new industrialization, developing new quality productive forces tailored to local conditions, and continuously building pillar industries that embody Guangxi's characteristics and advantages, with significant scale and strong driving force. Our goal is to accelerate the construction of a modern industrial system.

Thank you.

The Voice of Vietnam:

Mr. Lan mentioned Vietnam several times during his introduction and answers just now. In terms of promoting high-quality development, how is Guangxi advancing cooperation with Vietnam, especially in the process of building a convenient operating environment for domestic and international markets? As a province with close cooperation with Vietnam, what new considerations or measures does Guangxi have in mind in the new phase to consolidate and strengthen Sino-Vietnamese relations? Thank you.

Lan Tianli:

Thank you to the reporter from Vietnam. I provided relevant information earlier regarding the establishment of a convenient operating environment for domestic and international markets. In terms of deepening cooperation with Vietnam, I would like to first share a short story with everyone. Last August, a 4-year-old boy from Quang Ninh province in Vietnam, which neighbors Guangxi, fell critically ill with a rare and severe condition. Medical teams from Guangxi and Vietnam closely collaborated, initiating a cross-border medical rescue channel. They facilitated fast-tracked customs clearance, coordinated the transfer, and promptly delivered the critically ill boy to the National Regional Medical Center in Nanning, Guangxi. Following expert consultation, the boy was diagnosed with a rare condition known as Pompe disease. After careful treatment, the boy's condition stabilized, turning the situation from critical to safe. In recent years, there have been over 600 cases like this one where critically ill patients from Vietnam have been treated in Guangxi hospitals through this rescue channel. I believe this lifeline connecting the people of China and Vietnam vividly exemplifies the community of shared future between our two countries.

Guangxi and Vietnam are connected by mountains and rivers,  enjoy geographical proximity and cultural affinity. Our traditional friendship has withstood the test of time and grown even stronger, resulting in very close exchange and cooperation. As China-Vietnam open cooperation continues to deepen, Vietnam has become Guangxi's largest trade partner for the last 25 consecutive years. In 2023, the total value of imports and exports between Guangxi and Vietnam reached 253.95 billion yuan, a year-on-year increase of 29.2%. From January to May of this year, the total value of imports and exports reached 120.82 billion yuan, a year-on-year increase of 36.8%.

The building of a China-Vietnam community with a shared future that carries strategic significance gives Guangxi an important mission and task, as well as new historic opportunities for its opening-up and development.

We will accelerate interconnectivity. In terms of railways, the Nanning-Chongzuo section of the Nanning-Pingxiang high-speed railway was completed and opened for use in 2022, and the Chongzuo-Pingxiang section's construction has been sped up. The Fangchenggang-Dongxing high-speed railway started operation in 2023. In terms of highways, Guangxi has planned 13 expressways that lead to Vietnam, with 7 already completed and 6 currently under construction. The China-Vietnam Joint Statement proposes to "promote the cross-border standard-gauge railway connectivity between China and Vietnam, and conduct research on the Dong Dang-Hanoi and the Mong Cai-Ha Long-Haiphong standard-gauge railway projects in due course." This will further facilitate infrastructure "hard connectivity" between Guangxi and Vietnam. We are striving to promote related work on a local level.

We will deepen cross-border industrial cooperation. Last year, Guangxi's imports and exports of intermediate goods with Vietnam grew rapidly. Their proportion in the total value of imports and exports between the two sides ranked among the top nationwide. In the first five months of this year, Guangxi's imports and exports of intermediate goods with Vietnam increased by 46%. This shows that the collaborative work of building China-Vietnam cross-border industrial chains and supply chains via Guangxi is progressing rapidly. We will attract and support more enterprises to settle in Pingxiang, Dongxing and other border and harbor industrial parks in Guangxi. Based on the smart ports and logistics channels connecting China and Vietnam, we will create cross-border industrial chains and supply chains featuring complementary strengths and mutual benefits.

We will strengthen people-to-people exchange and communication in many other areas. An annual exchange meeting between Party secretaries of China's Guangxi Zhuang autonomous region and four Vietnamese border provinces has been held for 9 consecutive years, gradually deepening bilateral exchange in local governance. Over the past decade, nearly 10,000 young people from Guangxi and Vietnam have engaged in exchange visits and friendship activities. The China and Vietnam Border Inhabitants Gala, mainly featuring art performances and folk culture, has been held annually in border cities and counties. The Dongxing (China) -Mong Cai (Vietnam) Friendly Football Match at Lantern Festival has been held 29 times. Border residents from both sides have become friends through football and have celebrated the festival together. Such scenes have become a norm. The Detian-Ban Gioc Waterfall cross-border tourism cooperation zone, the first of its kind in our country, is on a trial run. We will continue to enrich the platforms of interaction and integration between the two sides, so that Guangxi will make more contributions to consolidating a traditional friendship between China and Vietnam.

Thank you.

Phoenix TV:

At the beginning of this year, images of a flock of Eurasian spoonbill foraging on the mud flat were captured by netizens in Beihaicity, Guangxi Zhuang autonomous region. This wild species, dubbed "a beauty among birds," is under second-class state protection. They have become a beautiful scenic element between the blue sea and sky of Guangxi. My question is: what efforts has Guangxi made in advancing ecological civilization? Thank you.

Lan Tianli:

Thank you for your question. This question will be answered by Xu Yongke, executive vice chairman of Guangxi Zhuang autonomous region.

Xu Yongke:

Thanks for your question. The beautiful scenery you mentioned is a vivid reflection of the ever-present green mountains, clear waters, fresh air and pleasant living environments in Guangxi, also the land of Bagui. Guangxi's ecological strengths can never be traded for gold. It serves as an important ecological screen in southern China, and is one of the global biodiversity hotspots. We have firmly adhered to the philosophy of green development as well as formulated and implemented regulations on promoting ecological conservation and other local regulations, so as to better protect mountains and waters in Guangxi, promote the comprehensive green transformation of economic and social development and accelerate work to build a beautiful Guangxi and strengthen Guangxi's ecological conservation. 

On the one hand, we have continued to highlight our strengths in natural beauty and good ecology. The Lijiang River is the soul of Guilin's landscape, which is globally renowned as a  calling card for China's tourism. We have formulated the Regulations on the Lijiang River Basin Environmental Protection, set up Lijiang River Protection Day and have regularly released the Lijiang River Ecological Environment Quality Report and the Lijiang River Environmental Index Report. In addition, we have implemented ecological conservation for the Lijiang River based on the rule of law as well as promoted Guilin's application for the United Nations Environment Programme's Champions of the Earth award and the Lee Kuan Yew Water Prize. The Lijiang River was selected into the first batch cases of "Beautiful Rivers and Lakes" in China. Comprehensive environmental improvement work in the Lijiang River basin has been recognized as a positive model for achieving solid results from inspections and rectifications. We have continued efforts to keep the skies blue, waters clear and lands clean, coordinately taking a holistic and systematic approach to the protection and conservation of mountain, water, forest, farmland, grassland, sea and wetland ecosystems. The quality of the ecological environment in the autonomous region has maintained a leading position in the country. In recent years, new species such as the Nidirana guibeiensis , Oreonectes andongensis and Prunus quanzhouensis have been discovered in Guangxi one after another. Bryde's whales, a rare species, have been spotted swimming freely in waters near Weizhou Island, making a new tourist hotspot in Beihai. Meanwhile, Chinese white dolphins and mangroves have become salient features of Qinzhou. Together with the area's large-scale industry, this demonstrates harmony between humanity and nature.

On the other hand, we are striving to broaden the development path of transforming lucid waters and lush mountains into invaluable assets. We stick to the dual-pathway approach of developing green industries and transforming industries toward green development, vigorously boosting industries such as forestry, cultural tourism, elderly care and comprehensive health care services in order to turn ecological strengths into developmental strengths. In 2023, Guangxi successfully hosted the first World Forestry Industry Conference. The total output value of the forestry and grassland industry reached nearly one trillion yuan, with every two pieces of domestically produced timber coming from Guangxi. The total investment funds for projects within the green and environmentally friendly industrial chain reached nearly 300 billion yuan, with 347 new projects signed and 112.9 billion yuan in available funds, aiming to achieve high-quality development through green transition. For example, Yangshuo county allocates 10% of its annual revenue from the Lijiang River and Yulong River scenic areas to 35,000 villagers along the rivers, allowing everyone to share in benefits from ecological dividend. The concept of "lucid waters and lush mountains are invaluable assets" has taken root and borne fruit in Guangxi.

Thank you.

National Business Daily:

We have noticed that in recent years Guangxi has undertaken the construction of the largest integrated new chemical materials industrial project transferred from the eastern region. How is the project going? How can Guangxi leverage its advantages to build industrial parks along the border and near ports to attract and absorb transferred industries? Thank you.

Lan Tianli:

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

Bai Songtao:

Thank you for your attention to the development of industrial parks along the border and near ports. The Huayi Qinzhou New Chemical Materials Integrative Base project you mentioned is not only the largest industrial project transferred from the eastern region to Guangxi in recent years, but also the largest single investment project of Shanghai Huayi (Group) Company in the past 10 years. As of the end of this May, over 35 billion yuan had been invested in the first and second phases of the project, and over 2 billion yuan had been put into the third phase. This project is located in the Qinzhou area of Guangxi's border and ports industrial park. Currently, the industrial park consists of areas in the cities of Dongxing, Pingxiang, Qinzhou, and Beihai. We have been leveraging the advantages of our unique location as well as market and policy incentives to create a comprehensive platform for industrial competition and cooperation, thereby attracting and absorbing phased trans-regional relocation of industries.

First, we have strengthened synergy with major national development strategies. We have proactively enhanced link with the country's regional development strategies, such as the development of the Yangtze Economic Belt, the Guangdong-Hong Kong-Macao Greater Bay Area, the coordinated development of the Beijing-Tianjin-Hebei region, the Chengdu-Chongqing Economic Circle and the Hainan Free Trade Port. We have signed cooperation agreements with relevant provinces and cities, and have held discussions with central SOEs at seminars hosted by the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council. We work hard to build consensus and promote all parties to cooperate with Guangxi in building the industrial park. Currently, we are accelerating the implementation of a batch of projects including the Jiangmen (Chongzuo) Industrial Zone. 15 central SOEs have signed 18 cooperation agreements with relevant cities in Guangxi, with a total investment of over 130 billion yuan.

Second, we have been building cross-border and cross-regional industrial and supply chains. We timely analyzed the cooperation potential and prospects with key regions in China and ASEAN countries in building relevant industrial and supply chains, rolled out support for the fostering of a group of industries which are complementary in resources for differentiated development and can serve as strong growth drivers, and strengthened open cooperation in industrial and supply chains. In addition to the petrochemical industry in Qinzhou city that was mentioned by Mr. Lan just now, electronic information, automobile and other industries in Guangxi also have close cooperation with ASEAN countries.

Third, we focus on releasing policy dividends. China has introduced fiscal, tax, land use, employment and financial policies to support the development of Guangxi's border and ports industrial park. For example, new investment enterprises that are in line with the industrial development direction can enjoy the preferential policy of "having their corporate income tax exempted for the first 5 years and halved for the following 5 years for the share to be taken by the region." These enterprises do not need to invest in foreign countries to build factories and recruit workers, but can still save their investment cost through these preferential treatments.

From January to April of this year, the total industrial output value of the border and ports industrial park increased by 14.5% year-on-year, and fixed-asset investment increased by 45%, showing a good momentum of development. We sincerely invite domestic and foreign enterprises to visit Guangxi for business opportunities, make investment here, and share opportunities from the development of the border and ports industrial park.

Thank you.

Jinan Times APP:

Guangxi has a wide variety of fruits throughout the four seasons, especially mangoes, dragon fruits and other high-quality fruits that are abundantly produced and affordable. Many netizens say that they can enjoy "fruit freedom" in Guangxi. My question is how does Guangxi develop fruit and other special agricultural industries? Thank you.

Lan Tianli:

Thank you for your question. I would like to invite Mr. Xu to answer it.

Xu Yongke:

Thank you for your attention to Guangxi's agriculture. Good mountains and good water nurture good products. Guangxi is one of the few regions in China that is suitable for comprehensive development in agriculture, forestry, animal husbandry and fishing. Based on our resource endowment, we have developed six 100-billion-yuan level characteristic agricultural industries including grain, sugar, fruit, vegetables, livestock and poultry, and fisheries. This has not only contributed to the stable production and supply of important agricultural products nationwide but also provided solid support for continuously consolidating and expanding achievements in poverty alleviation and comprehensively promoting rural revitalization. In 2023, the per capita disposable income of rural residents in Guangxi was 18,656 yuan, an increase of 7% year-on-year, which was 3 percentage points higher than that of urban residents. The per capita disposable income of farmers in areas that had been lifted out of poverty was 16,914 yuan, an increase of 12.5% year-on-year.

Now, I will focus on the development of three industries.

We work hard to strengthen the fruit industry. Guangxi has a large-scale fruit industry with a great variety of fruits. Subtropical fruits such as litchi and longan are very common. Traditional fruits in northern China such as persimmons and pears are also widely grown here. There are nearly 300 varieties of fruits, with seasonal fruits becoming available every month. Mr. Lan has just mentioned that last year our fruit output was 33.89 million tons, accounting for about one-eighth of the national total. In addition, more than half of the fruits from ASEAN countries, such as durian and mangosteen, which are widely popular among Chinese consumers, are imported through Guangxi. We are currently accelerating the building of the China-ASEAN Fruit Trading Center to better promote the export of apples, citrus and other fruits and the import of tropical fruits.

We strive to promote the sugar industry. Guangxi has ranked first in the country when it comes to sugarcane planting acreage and sugar production for 33 consecutive years. We always adhere to the special mission of ensuring the country's sugar security, making every effort to stabilize the planting area while also striving to promote scientific and technological innovation in the sugar industry. The self-bred sugarcane varieties such as Guitang 42 and Guitang 44 have superior performance indicators, such as high yield and high sugar content, compared to the original imported varieties. We are committed to building high-quality and high-yield sugarcane bases that plant sugarcanes with high sugar content. Our goal is to create protection zones for sugarcane planting and facilitate the transition of the traditional sugar industry toward biochemical industry, food industry and the fermentation industry. Our "sweet business" is continuously progressing and improving.

We are dedicated to strengthening the vegetable industry. Guangxi, often referred to as a "natural green greenhouse," is the largest production base for autumn and winter vegetables in China. We actively promote the standardized development of vegetable cultivation, both in facility-based and park-based settings, and prioritize the establishment of cold storage, warehousing, sorting and distribution centers. These efforts position us as a significant hub for transporting "southern vegetables to the north" and "western vegetables to the east". Last year, Guangxi produced over 40 million tonnes of vegetables, with over 10 million tonnes being transported to other regions. Hezhou city, adjacent to the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), supplies approximately 70% of the vegetables to the GBA market each year.

Next, we will continue to leverage our unique resources, such as forestry, fruit, vegetables, livestock and sugar, to develop modern special agriculture, providing more high-quality specialized agricultural products while ensuring the wider recognition of the "Guangxi brand" across the country

Thank you.

CCTV:

We know that every year on the third day of the third lunar month, Guangxi hosts a vibrant and diverse cultural event where people from various ethnic groups come together to sing and dance in celebration. Being the autonomous region with the largest ethnic minority population in the country, how can Guangxi establish itself as a model for forging a stronger sense of community for the Chinese nation? Thank you.

Lan Tianli:

Thank you for the question. Guangxi is home to 12 different ethnic minorities, making up 37.52% of the population. The people from all ethnic groups have lived as one family for a long time, "sharing the same sky, cultivating the same land, drinking the same river water and building a home together." The relationships between the different ethnic groups are harmonious. In Guangxi, there are over 1.63 million families composed of two or more ethnic groups. In Longsheng county, there is a family surnamed Hou and comprised of five different ethnicities: Zhuang, Han, Yao, Miao, and Dong. They live together harmoniously, sharing love, care and a joyous life. Our primary focus is on forging a strong sense of community for the Chinese nation . We strive to jointly foster shared cultural belonging to the Chinese nation and build our homeland into a happy one with prosperity for all, a harmonious one where mutual support prevails, a livable and scenic one as well as a stable one with peaceful border regions.

In terms of jointly fostering shared cultural belonging to the Chinese nation, we are committed to further promoting and cultivating a strong sense of  community for the Chinese nation, creating special cultural brands, such as "Guangxi Lunar March 3rd" and "Liu Sanjie," preserving priceless cultural treasures like the bronze drum and Zhuang brocade as well as advancing the popularization of standard spoken and written Chinese. The popularity of standard Chinese has reached 85.68%, nearly 5 percentage points higher than the national average. A sense of community for the Chinese nation is deeply rooted within the land of Guangxi.

In terms of building a happy homeland with prosperity for all, we are committed to advancing the high-quality development of compact communities in which ethnic minorities live. Additionally, we have extensively promoted a program for boosting development and raising living standards in border areas in the new era. By doing so, we aim to ensure that people of all ethnic groups can press forward for a good life and share the development achievements. Huanjiang is the only autonomous county of the Maonan ethnic group in the country. General Secretary Xi Jinping has issued the important instruction regarding the whole Maonan ethnic group's poverty alleviation. There is a charming village in Huanjiang, and I have visited it many times for research. Before poverty alleviation, this village encountered challenges in transportation, medical treatment and healthcare services. Through relocation from inhospitable areas, east-west cooperation and targeted assistance, industrial development and the promotion of all-around rural revitalization, the village has shaken off poverty and now embarked on a path of "improving education, gaining employment, facilitating tourism and realizing industrial prosperity." The villagers' lives are getting better, and the charming village has also taken on a new look. There are many examples like this in poverty alleviation.

In terms of building a harmonious homeland where mutual support prevails, our work starts at the grassroots level with solid community construction, effective services and a wealth of activities to serve and promote connection, interaction and integration among various ethnic groups. For example, in the poverty alleviation, we have built 506 centralized relocation sites, resettling over 160,000 households and 710,000 individuals. Over 90% of these resettlement sites are inhabited by multiple ethnic groups. People of all ethnic groups live, study, work and enjoy together, collaborating to create a good and harmonious life.

We have introduced the construction of a livable, healthy and beautiful homeland. It is apparent to all that there have been remarkable achievements in building a stable homeland with peaceful border regions. However, due to time limitation, a detailed explanation cannot be provided at this time. 

Just now, you mentioned "Lunar March 3rd," which is a statutory holiday in Guangxi and also a traditional festival celebrated by many ethnic groups. It is a symbol of Chinese culture that we all benefit from. We warmly invite all journalists to come to Guangxi and experience the warmth of various ethnic groups that are as close as family and united in harmony.

Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thank you to all speakers and friends from the press. Goodbye.

Translated and edited by Wang Yiming, Yang Xi, Qin Qi, Zhang Tingting, Liu Caiyi, Li Xiao, Dong Qingpei, Wang Ziteng, Wang Qian, Liu Qiang, Huang Shan, Wang Wei, Yuan Fang, Ma Yujia, Zhang Junmian, Wang Yanfang, Li Huiru, David Ball, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers:

Ms. Wang Lixia, deputy secretary of the Communist Party of China (CPC) Inner Mongolia Autonomous Regional Committee and chairwoman of Inner Mongolia autonomous region

Mr. Huang Zhiqiang, a member of the Standing Committee of the CPC Inner Mongolia Autonomous Regional Committee and executive vice chairman of Inner Mongolia autonomous region

Mr. Yang Jin, vice chairman of Inner Mongolia autonomous region

Mr. Gong Mingzhu, director of the Development and Reform Commission of Inner Mongolia Autonomous Region

Chairperson:

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

Date:

June 7, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 28th briefing in the series "Promoting High-Quality Development." Today, we have invited Ms. Wang Lixia, deputy secretary of the Communist Party of China (CPC) Inner Mongolia Autonomous Regional Committee and chairwoman of Inner Mongolia autonomous region, to brief you on prioritizing high-quality development in Inner Mongolia and building a model autonomous region in an all-round manner, and to take your questions. Also present today are Mr. Huang Zhiqiang, a member of the Standing Committee of the CPC Inner Mongolia Autonomous Regional Committee and executive vice chairman of Inner Mongolia autonomous region; Mr. Yang Jin, vice chairman of Inner Mongolia autonomous region; and Mr. Gong Mingzhu, director of the Development and Reform Commission of Inner Mongolia Autonomous Region.

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

Wang Lixia:

Good morning, everyone. It's a great pleasure to meet you here. First of all, on behalf of the CPC Inner Mongolia Autonomous Regional Committee, the regional government and all the residents of various ethnic groups in the region, I would like to express my sincere gratitude to you for your long-term interest in as well as support and assistance for the development of Inner Mongolia.

In June last year, General Secretary Xi Jinping made his fourth visit to Inner Mongolia, encouraging us to prioritize high-quality development and forge new paths toward Chinese modernization. This has greatly inspired the officials and residents across the region. In October last year, the Opinions of the State Council on Promoting the High-Quality Development of Inner Mongolia Autonomous Region and Striving to Write a Brand-new Chapter of Chinese Path to Modernization was issued, providing significant policy and historical opportunities for the development of the autonomous region. We have encapsulated General Secretary Xi Jinping's important speeches and instructions regarding Inner Mongolia into two major initiatives. The first is to accomplish the five major tasks assigned by the general secretary, namely, building Inner Mongolia into a major ecological security shield for north China as well as a shield of safety and stability for the northern border, which we generally refer to as the "two shields;" developing the autonomous region into a major national base for energy and strategic resources as well as a major national production base for agricultural and livestock products, commonly known as the "two bases;" and building the region into an important gateway in China's northward opening up. The second initiative is to build a model autonomous region in an all-round manner. Bearing in mind General Secretary Xi Jinping's instructions with gratitude, we are currently pressing ahead with united efforts to advance the two major initiatives and vigorously promote high-quality development. The northern border of our motherland is presenting a vibrant and prosperous scene. I am very honored and pleased to have this opportunity to introduce Inner Mongolia to you all today.

Inner Mongolia boasts majestic natural beauty. Among the provincial-level regions in China, it has the largest span from east to west, stretching approximately 2,400 kilometers. The sun rises over Hulun Buir in the east and takes two hours to reach Ejin Banner in the west. Across its vast 1.18 million square kilometers of land, you will find beautiful sprawling forests, expansive grasslands, extensive wetlands and vast deserts. There is a well-known song that vividly captures the grandeur of Inner Mongolia's scenery: "Beautiful grasslands, my home; the wind blows the green grass and flowers bloom everywhere; butterflies flit amid a chorus of birdsong; a stretch of lucid water reflects the evening glow."

Inner Mongolia is experiencing a remarkable surge in development. Over the past two years, the region's growth has accelerated significantly, with major economic indicators consistently ranking among the top in the nation. Notably, last year, the growth rates of Inner Mongolia's GDP, fixed asset investment, and total import-export volume all ranked among the top three nationwide, while the growth rate of value-added by industrial enterprises above the designated size ranked seventh. A number of major projects with long-term benefits have been implemented. This year, we initiated six major projects regarding policy implementation, desertification prevention and control as well as wind and photovoltaic power integration, heating, integrity building, and technological breakthroughs and free trade zone development. These initiatives aim to shore up weak links in the high-quality development and accelerate our progress toward the goal of breaking new ground and advancing to the middle tier.

High-quality development has transformed Inner Mongolia. As we all know, the region is richly endowed, with dense forests in the east, iron mines in the west, fertile grain-producing lands in the south, and lush grasslands in the north. Its riches can be found underground, on the surface and in the air. Underground, the reserves of more than 20 minerals rank first nationwide, earning the region the title of the country's mineral vault. On the surface, the region's farmlands, grasslands, and forests rank among the top nationwide. High above the ground, exploitable wind power and solar energy resources rank first and second in the country, respectively. These abundant resources lay a solid foundation and present an enormous advantage for the development of Inner Mongolia. Building on our resources and strategic position, we have established eight major industrial clusters and 16 important industrial chains. Several industries continue to expand with great growth potential and development resilience. Leading industries, such as new energy, new rare earth materials, and modern coal chemicals, have made significant gains in the domestic market. Famous brands like Yili and Mengniu in the dairy industry and Erdos in clothing have gained international recognition.

Various ethnic groups live harmoniously and help each other in Inner Mongolia. Since ancient times, many ethnic groups have inhabited the Inner Mongolia Plateau, with continued interactions and integration. Since the establishment of the Inner Mongolia autonomous region 77 years ago, government officials and the public have worked together to earn and uphold its title as a model autonomous region, which is a high accolade. Today, a total of 56 ethnic groups live in the autonomous region. Different ethnic groups live in the same villages and communities; they study in the same school classes, and work in the same enterprises. Living, studying, working and enjoying life together, these different ethnic groups embrace each other just like pomegranate seeds sticking together.

Inner Mongolia offers a modern, convenient lifestyle. The autonomous region is located on the northern border of China. However, this geographical situation doesn't hinder residents from enjoying modern life. High-speed trains can take passengers from the cities of Hohhot, Ulanqab, Chifeng and Tongliao to Beijing within two hours. Expressways connect all 12 leagues and cities of the autonomous region, and 103 banners and counties can be reached by first-class highways or above. Residents in small border towns and remote pastures can access schools and hospitals without traveling far. Smart home appliances, broadband networks, and express delivery and food takeaway services are available to ordinary people in the depths of the grasslands. Additionally, a new trend has emerged among herders, who now monitor their herds and shoot short videos with their smartphones.

That's all from me for now. My colleagues and I are ready to take your questions. Thank you, everyone.

Xing Huina:

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

Xinhua News Agency:

Ms. Wang just mentioned the five major tasks to fulfill. I understand that these tasks actually represent the strategic positioning of Inner Mongolia stipulated by the central government. Could you please elaborate on the progress of these tasks? Thank you.

Wang Lixia:

Thank you. I will answer this question.

Eying the big picture of national development, General Secretary Xi Jinping defined Inner Mongolia's strategic position by assigning it five major tasks. These tasks represent our important duties and missions. By fulfilling these tasks, we aim to ensure national security in five key areas: food security, energy security, industrial security, ecological security, and border security.

As an important ecological barrier for northern China, Inner Mongolia's eco-environment is crucial for the livelihoods and prosperity of local residents and affects the ecological security of China's northern, northeastern, and northwestern regions, as well as the entire country. In recent years, we have continuously prioritized ecological conservation. We have implemented measures such as subsidizing "no-grazing" periods across the vast grasslands. We banned commercial logging in the Greater Khingan Mountains, turning former lumberjacks into forest rangers. We stabilized the boundaries of key deserts, stopping shifting sand dunes from advancing further. Over the past 10 years, Inner Mongolia has led the nation in afforestation, grass planting, and combating desertification. Grassland vegetation coverage has reached 45%, and over 60 million mu (40,000 square kilometers) of desertified and sandy land has been reclaimed. In the past, deserts encroached on human habitats, but the situation has been reversed, with former deserts now covered in greenery.

As a barrier ensuring the security and stability of China's northern border, Inner Mongolia shares over 4,200 kilometers of border with Russia and Mongolia, with border management areas covering 360,000 square kilometers. As the northern gate of the country, Inner Mongolia shoulders significant responsibilities for safeguarding national security and maintaining peace in the border regions. Over the years, we have thoroughly implemented actions to boost the economies of border areas and raise local living standards. Now, residents thrive in beautiful border areas, and borderland stability and security have been enhanced.

As a major national base for energy and strategic resources, we have consistently prioritized national energy security. We are the country's leading supplier of coal and electricity. Last year, we successfully delivered 945 million metric tons of coal to 29 provincial-level regions. We transmitted 306.5 billion kilowatt-hours of electricity to other regions across the country, tripling the annual power generation of the Three Gorges Dam. In particular, we supplied 23 billion cubic meters of natural gas to the Beijing-Tianjin-Hebei region, transmitting it over more than 700 kilometers. We also delivered 100 million kilowatt-hours of green electricity to the Hangzhou Asian Games, over a distance of more than 1,600 kilometers.

As an important production hub for agricultural and livestock products, the Inner Mongolia autonomous region is well-known for being the country's leading producer of beef, mutton, milk, and cashmere. For example, out of every 10 kilograms of beef in China, 1 kilogram is produced in Inner Mongolia; out of every 5 kilograms of mutton, 1 kilogram comes from there; and out of every 6 cups of milk, more than 1 cup is produced in Inner Mongolia. Additionally, half of the country's cashmere is sourced from Inner Mongolia. Moreover, Inner Mongolia is a major grain producer. It is one of the five provincial regions with over 100 million mu of arable land and has achieved a grain output exceeding 35 billion kilograms for five consecutive years, with more than half of this grain supplied to other parts of the country. Generally speaking, Inner Mongolia is China's leading producer of grain, meat, milk, and cashmere, and our mission is to produce more and higher-quality grain, meat, and milk for the country.

As a critical frontier for opening up to the north, Inner Mongolia has 20 ports open to other countries. Manzhouli, China's largest land port, handles 65% of China-Russia land trade, while Erenhot is the largest land port connecting to Mongolia. In recent years, we have actively participated in the Belt and Road Initiative and the construction of the China-Mongolia-Russia Economic Corridor. Last year, our total import and export volume grew by 30.4%, ranking third in the country. The total cargo volume through our ports exceeded 100 million metric tons, setting a new record for land ports along China's borders.

Thank you!

Xing Huina:

Next question, please.

CCTV:

Last year, the State Council published a guideline to boost the high-quality development of the Inner Mongolia Autonomous Region, invigorating Chinese modernization. How has the implementation progressed so far? How can we ensure that the public enjoy tangible benefits? Thank you.

Wang Lixia:

I'd like to invite Mr. Huang Zhiqiang to answer this question.

Huang Zhiqiang:

Thank you for your question. Last year, the State Council issued the guideline, and various ministries and commissions introduced related supportive policies, all of which are tailored to benefit Inner Mongolia by boosting sound, substantial development. The measures cover five areas: infrastructure, energy and resources, the ecological environment, industrial development, and people's livelihoods. Implementing these policies will profoundly impact Inner Mongolia's high-quality development and contribute to China's modernization.

We have seized this significant development opportunity by breaking down the guideline into 86 major projects, transforming the blueprint into a concrete action plan. To date, 59 major projects have commenced construction, with a total investment of 135 billion yuan, and all tasks are progressing smoothly.

The implementation of these policies brings tangible benefits to the public. For example, in transportation, we have accelerated the construction of the Baotou-Yinchuan high-speed railway. Once operational, travel time from Bayannur to Beijing will be reduced from 13 hours to four hours. We are also optimizing airport layouts, accelerating the construction of general airports, and developing regional routes, making border areas more accessible.

In terms of increasing employment, we have planned the construction of six large-scale wind power and photovoltaic bases in sandy, rocky, and barren areas. According to our preliminary estimates, each base will have a static investment of over 80 billion yuan and will provide more than 10,000 jobs for the local area.

Regarding rural revitalization, we have significantly supported designated counties and banners by establishing numerous national-level modern industrial parks. For example, the dairy and soybean industrial park in Morin Dawa Daur autonomous banner can boost the income of 50,000 farming households in the area.

In order to boost local economies and ensure stability in border areas, we have implemented projects to improve and upgrade infrastructure in villages and small towns at key junctures. This includes advancing the integrated construction of facilities for drinking water, electricity, roads, and telecommunications. Our goal is to ensure that all villages, guard posts, police stations, and small police stations in border areas have access to drinking water, electricity, telecommunications, as well as radio and television services.

We have stepped up our efforts to establish four regional health centers in a bid to improve medical services. We have worked with the Beijing Cancer Hospital to establish a branch hospital in the Inner Mongolia autonomous region. In the past, many people had to travel to Beijing for medical treatment. Nowadays, residents can access top-notch medical expertise from experts in Beijing without leaving their local area.

Thank you.

Xing Huina:

Thanks. Please continue with your questions.

CRNTT:

Inner Mongolia is an important hub of the China-Mongolia-Russia Economic Corridor, and also a crucial gateway for the New International Land-Sea Trade Corridor in the western region. What considerations are there for promoting higher-level opening-up and serving the overall national policy of opening-up? Thank you. 

Wang Lixia:

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

Yang Jin:

Thank you for your question. Situated on the northern frontier of China, Inner Mongolia serves as a vital gateway for opening up to countries and regions north of China. It boasts unique advantages to open up internally and externally. In recent years, with the further advancement of the Belt and Road Initiative and the China-Mongolia-Russia Economic Corridor, Inner Mongolia has expanded its economic cooperation with more partners in Russia and Mongolia, achieving a higher level of openness to northern countries and regions.

Inner Mongolia's Manzhouli and Erenhot serve as the exit ports for the eastern and central corridors of the China-Europe Railway Express, respectively. These two corridors make up two-thirds of the three railway corridors of the China-Europe Railway Express across the nation. In 2023, almost 50% of the China-Europe freight trains nationwide departed from or passed through Inner Mongolia. Manzhouli Port is China's largest land port, while Erenhot Port is China's largest land port to Mongolia. Given this, we have adopted a series of measures to improve and upgrade infrastructure and leverage information-based and smart technologies to ensure the smooth operation of the China-Europe Railway Express services. Moreover, we have intensified efforts to build Manzhouli and Erenhot into smart ports and adopt a new model of cross-border transportation using automated guided vehicles in Ganqmod and Ceke ports, significantly accelerating port clearance efficiency.

The China-Mongolia Erenhot- Zamyn-Uud economic cooperation zone was officially approved a couple of months ago. This marks the third cross-border economic cooperation zone established between China and its neighboring countries. We will intensify efforts to boost the development of various industries in the zone, including cross-border tourism, the modern service industry, international trade logistics, and the deep processing of imported and exported goods. By doing so, we aim to build the China-Mongolia economic cooperation zone into a high-level platform for opening up border areas.

Furthermore, we have enhanced cooperation with countries along the Belt and Road in various fields, including agriculture and animal husbandry, energy and minerals, the digital economy, biomedicine, and infrastructure. We have also promoted border trade among residents living in border areas. Stepped-up efforts have been made to accelerate the integrated development of domestic and foreign trade, enhancing our cooperation with the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and China's northeastern provinces, and improving the coordination mechanism between Inner Mongolia and Beijing. We have also ramped up efforts to promote the construction of the demonstration zone for industrial relocation. In collaboration with partners from Shanghai, Tianjin, and other regions, we have established 25 inland ports across Inner Mongolia. These efforts have created more opportunities for businesses in Inner Mongolia to engage in international trade locally. Additionally, these inland ports have provided support for other regions to open up to northern countries and enhance cooperation with them.

We have established a series of platforms for cooperation and exchanges, such as the China-Mongolia Expo, the Economic and Trade Fair for China's Northward Opening-up, and events to help enterprises from the Inner Mongolia autonomous region seek business opportunities and cooperation abroad. Through these efforts, we have expanded our international circle of friends and trading partners, enabling us to integrate into and contribute to the dual circulation of domestic and international markets in an all-round manner to raise opening-up to a higher level with wider coverage and scope.

Thank you.

China Mining News:

Inner Mongolia is rich in wind and solar resources, which gives it unique advantages in developing new energy industries. Given this, what efforts will Inner Mongolia make to promote the high-quality development of new energy industries?

Wang Lixia:

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

Huang Zhiqiang:

Thank you for your question. Inner Mongolia, as you mentioned, is a natural fit for the development of new energy industries thanks to its abundant wind and solar resources, its vast coal reserves, and its well-developed power grid.

Inner Mongolia is abundant in wind and solar power resources. It holds over half of China's exploitable wind energy resources and more than 20% of its exploitable solar energy resources.

Inner Mongolia has abundant coal reserves and large-scale thermal power generating units. As a stable and reliable method for peak shaving, these can support the large-scale and high-proportion use of new energy.

Inner Mongolia has a well-developed power grid, which is the third largest in the country — the Mengxi Power Grid. We are close to the load center with low transmission costs, and can provide green, cheap and reliable electricity.

Based on our resource endowment, we are moving toward green and new energy development, and have put forward the goals of "two firsts" and "two surpasses." We aim to be the first in the country to establish an energy supply system with new energy as the mainstay, and the first to build a new power system with new energy as the main body. By 2025, the scale of new energy installed capacity will surpass thermal power capacity, and by 2030, the total amount of power generation from new energy will surpass thermal power. At present, the installed capacity of new energy in Inner Mongolia has exceeded 100 million kilowatts, and the goal of overtaking thermal power capacity will be achieved ahead of schedule by the end of this year.

In order to promote the external delivery of green electricity, we are advancing the construction of six large wind and photovoltaic power delivery bases with a total installed capacity of tens of millions of kilowatts with high standards, and concentrating on the development of wind and photovoltaic power in the three major deserts of Kubuqi, Ulan Buh and Tengger, to supply clean energy on a large scale to the Beijing-Tianjin-Hebei region and the Yangtze River Delta.

In order to promote the local consumption of green electricity, we have planned six scenarios and tailored new energy allocation policies, including source-grid-load-storage, wind-solar hydrogen production, green power supply in industrial parks, green power substitution of self-provided power plants, full self-generation and self-use, and flexible transformation of thermal energy power. In each scenario, both the power generation side and the load side seek balance to achieve the maximum degree of self-consumption.

We are committed to developing the entire industrial chain, focusing on new energy development on the one hand and equipment manufacturing on the other, and concentrating on building four 100-billion-yuan industrial clusters of wind power, photovoltaics, hydrogen energy and energy storage. We are focused on the equipment manufacturing industry in the upper-stream and have extended the development of green chemicals such as green hydrogen and green ammonia in the lower-stream. We have comprehensively attracted supercomputing and intelligent computing industries to assist China's "East Data, West Computing" project, and simultaneously developed high-end producer services such as R&D, innovation, operation and maintenance services.

In summary, Inner Mongolia is rich in wind and solar power resources, and has great potential and opportunities for new energy. We hope to share the benefits of new energy development with everyone. Thank you.

Macrochina Network:

Inner Mongolia is the main battlefield for desertification control in China and an important region for implementing the Three-North Shelterbelt Forest Program (TSFP), a large-scale afforestation project in northwest, north, and northeast China. Could you please introduce some of the progress and achievements made by the autonomous region in advancing the program? Thank you.

Wang Lixia:

I will answer this question. Thank you for your question. Desertification control under the program has attracted much attention from the media. In fact, the largest task is in Inner Mongolia. Among the three landmark projects deployed by General Secretary Xi Jinping in this regard, the Yellow River Jiziwan Project (“Jiziwan” refers to a Yellow River bend in the shape of the Chinese character “几”) and the Horqin and Hunshandake Sandy Lands Project are almost all in Inner Mongolia, and the Hexi Corridor-Taklimakan Desert Project involves Alxa League in our region. It can be said that two and a half of the three landmark projects are in Inner Mongolia. Therefore, Inner Mongolia is the main battlefield for desertification control in China, so we must shoulder the main tasks. We took swift actions. Last year, desertification controls were completed for 9.5 million mu (about 633,333 hectares), which was 1.5 times the original plan at the beginning of the year. We expect to complete 97 million mu (about 6.46 million hectares) of desertification control by 2030. We must not only put green "protective clothing" on the desert, but also create a super “carbon sink” and a pure “oxygen bar.” For example, the Maowusu Desert is larger than the island province of Hainan. Now 80% of the desert has been turned green, and the green territory has advanced 200 kilometers to the south. The familiar Kubuqi Desert covers an area of 21.15 million mu (about 1.41 million hectares), and now over 40% of the area has been turned green. It has been identified by the United Nations Environment Program (UNEP) as an ecological economy demonstration zone. Dengkou county of Bayannur city is adjacent to the Ulan Buh Desert in the west. A forest belt that is 154 kilometers long and 100 meters wide has been built on the eastern edge of the desert, and has caused the eastern edge of the desert to retreat 20 kilometers and reduced the annual sediment transported to the Yellow River by more than 90%.

This year, we have combined sand prevention and control with new energy development, implementing projects that integrate sand prevention and control with wind and solar energy, and plan to provide over 100 million kilowatts of new energy. In the city of Ordos, between the northern edge of the Kubuqi Desert and the southern bank of the Yellow River, a photovoltaic Great Wall is under construction. This project spans 400 kilometers in length and averages 5 kilometers in width. Through the project for the integrated advancement of sand prevention and control and photovoltaic energy, we aim to transform the yellow deserts into green fields and "blue seas" of photovoltaic panels.

We have also fully mobilized the enthusiasm of enterprises, farmers, herdsmen and social organizations. Dozens of state-owned enterprises (SOEs), central SOEs, and private enterprises are taking part, creating a surge in sand prevention and control efforts across the region. In particular, different localities have used various methods to encourage local people to participate in sand control. For example, in Alxa League, where the Badain Jaran, Tengger and Ulan Buh deserts are located, large-scale production bases for desert plants of traditional Chinese medicine like haloxylon, cistanche and cynomorium have been established. This has boosted the incomes of local farmers and herdsmen, and been particularly welcomed by the local people. Our goal is to complete the significant ecological project of the Three-North Shelterbelt Forest Program while boosting development and enriching the people in the process. In this way, we can control the sand, generate green electricity and increase people's incomes, achieving a "triple win" in ecological conservation, production and livelihoods. Thank you.

Inner Mongolia Radio and Television Station:

When speaking about Inner Mongolia, many will think of the poetic line: "When the grass is bent low by the blowing wind, the sheep and cattle come into sight." As a major agricultural and animal husbandry region, how will Inner Mongolia promote the modernization and high-quality development of the two sectors? Thank you.

Wang Lixia:

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

Gong Mingzhu:

Thank you for your question. As an important region for agricultural and livestock product production in China, Inner Mongolia has achieved 20 consecutive years of bumper grain harvests and 19 consecutive years of stable livestock production. We are now planning to leverage our unique advantages of a good ecological environment and rich agricultural and animal husbandry resources, so as to promote Inner Mongolia's transformation from a large producer of agricultural and livestock products to a strong competitor in agricultural and animal husbandry. In simple terms, we aim to achieve improvements in three aspects.

First, we aim to lay a more solid foundation for the development of modern agriculture and animal husbandry. Focusing on arable land, we will strengthen agricultural infrastructure construction, especially by developing high quality and high-standard farmland. We will convert small, scattered plots of land and steep slopes, which are unsuitable for cultivation, into large, contiguous fields suitable for mechanized farming and capable of stable high yields. Last year, two-thirds of our grain production came from 52.37 million mu of high-standard farmland. This year, we plan to develop an additional 8.5 million mu of high-standard farmland. At the same time, we will vigorously improve the technological level of agriculture and animal husbandry, especially in the seed industry, which is crucial for the high-quality development of the two sectors. We will implement projects to cultivate high-quality and distinctive varieties of corn, potatoes and sunflowers, and carry out joint research on dairy cattle breeding to create first-class sources for milk, seed and forage.

Second, we aim to ensure a more abundant supply of agricultural and livestock products. Last year, Inner Mongolia's total grain output reached 79.16 billion jin (39.58 billion kilograms). This year, we will carry out actions to increase per-unit yields. In particular, we will implement the national project to increase the per-unit yields of corn and soybeans, and build demonstration areas of 4.05 million mu, with the aim to boost total grain output to 80 billion jin this year. We will also vigorously develop intensive processing of agricultural and livestock products. We will not only focus on intensive processing of grains, meat and milk, but also make use of rice husks, bran, and fruit and vegetable peels and pomaces. At the same time, we will also support and encourage enterprises in Inner Mongolia to develop cold chain warehouses in major consumption areas like Beijing, Shanghai, Guangzhou, Shenzhen, the Yangtze River Delta and the Pearl River Delta, so as to provide more and better milk, meat and grain to the whole country.

Third, we aim to make ecological protection even more prominent in agriculture and animal husbandry. The water and soil in the agricultural and pastoral areas of Inner Mongolia are clean. These are our greatest assets in production and competition, and we must do everything possible to protect them. In terms of agriculture, we will advance water-saving and efficiency-increasing projects. Next year, we aim to expand the area of efficient water-saving irrigation from the current 34.03 million mu to 38 million mu, which would save over 3.5 billion cubic meters of water annually. Additionally, we will implement actions to reduce the amounts of fertilizers and pesticides and increase their efficiency, so that the use of pesticides and fertilizers steadily decreases. In terms of animal husbandry, we will mainly promote the transformation and upgrading of grassland animal husbandry, increase the proportion of modern animal husbandry, and address the issue of overgrazing on grasslands. This will achieve a win-win situation where both the development of animal husbandry and the protection of grasslands are realized. Thank you. 

Chengdu.cn:

My question is: Inner Mongolia has announced plans to advance scientific and technological innovation with extraordinary efforts, breaking the mold to catch up in innovation-driven development. Which areas will be given priority to advance industrial upgrading through scientific and technological innovation? Thank you.

Wang Lixia:

Mr. Huang Zhiqiang will answer this question. 

Huang Zhiqiang:

Thank you for your question. Inner Mongolia attaches great importance to scientific and technological innovation and the development of new quality productive forces. We are implementing a project to make scientific and technological breakthroughs. Our efforts are focused on areas with resources, local features, and advantages, striving to achieve "leading from the start" in specific areas and leveraging these areas to drive scientific, technological and industrial development.

We have advanced innovation with a focus on resources. For example, Inner Mongolia leads the world in terms of both reserves and the quality of rare earth resources. We have established the most complete industrial chain in China. With the goal of building the largest rare earth new material base, we have developed the resources into materials, abandoned the traditional simple mode of "mining rare earths and then selling them," and focused on five major areas — permanent magnet, hydrogen storage, catalytic materials, polishing materials, and alloys — and improved resource use efficiency and the degree of intensive processing in the industry. This promotes the transition from "world-class reserves" to a "world-class industry." Aiming to build the world's leading rare earth application base, we have worked to put materials into the application, created a national innovation center for rare earth materials, accelerated efforts to make breakthroughs in cutting-edge technology, and expanded the applications of rare earths, continuing to improve the comprehensive added value of rare earth products.

We have advanced innovation with a focus on our local features. For example, Inner Mongolia is a leading provincial region in animal husbandry, and the dairy industry is our distinctive local industry. Last year, the only national technology innovation center for the dairy industry in China was officially put into operation, gathering 10 academicians, over 100 industry experts, and an innovation team of over 5,000 people. We have structured our innovation efforts around the existing industrial chain, planning 20 research areas and 76 research directions. Our focus is on five strategic goals: Chinese cattle, Chinese breeding methods, Chinese raw materials, Chinese equipment, and Chinese standards.

We have advanced innovation with a focus on our advantages. For example, Inner Mongolia has obvious advantages in developing new energy. In terms of wind and solar power, we have continued to launch new products to achieve iterative upgrades. Onshore wind power units with the largest impeller diameter and the highest single-unit capacity in the world have been produced. The impeller diameter of these units is 214 meters, which is as tall as a 70-story building. Each unit has a maximum power output of 11 megawatts and can generate 10,000 kilowatt-hours of green electricity per hour, which is enough to meet the annual electricity needs of 12 families. To enhance the power grid's capability to accommodate a high proportion of new energy power, we have built the Daqingshan Laboratory for a demonstration of flexible and intelligent power grid integration. This project explores the path for constructing a new power system nationwide. In terms of hydrogen storage, we have made every effort to support the development of all kinds of hydrogen production and storage technologies in Inner Mongolia. By 2025, the green hydrogen production capacity will reach 850,000 tons and the installed capacity for energy storage will exceed 20 million kilowatts. Inner Mongolia, already a leading provincial region in new energy, will also become a leader in green hydrogen and energy storage.

Thank you!

China News Service:

Since last year, many regions in China have experienced a cultural tourism boom. Inner Mongolia, with its vast land and numerous scenic spots, offers the stunning and captivating beauty of the prairie. What measures has Inner Mongolia taken to develop its cultural and tourism resources and improve service quality to attract more tourists? Thank you.

Wang Lixia:

Mr. Yang Jin will answer this question.

Yang Jin:

Thank you for your question. As you mentioned, Inner Mongolia is a vast region with many scenic spots. When you travel here, you can experience prairies, forests, rivers and lakes, wetlands, and deserts. Inner Mongolia is the top choice for self-driving tours, one of the best places for camping trips, a must-visit for vacations, and an excellent health tourism destination.

Choosing Inner Mongolia as the top destination for self-drive trips is well-deserved because we have created 12 high-quality routes, including the picturesque G331 National Highway and the 1,000-kilometer grassland scenic avenue. Driving your own car, you can see the grasslands, walk through forests, visit wetlands, and drive across deserts. You can enjoy the magnificent scenery of the Hulun Buir Grassland, the Greater Khingan Range forests, the Ergune Wetland, and the Badain Jaran Desert. We are also enhancing the self-drive experience by improving expressway traffic capacity, building high-quality recreational vehicle parks, and increasing charging stations for new energy vehicles. This year, we collaborated with Amap to establish a self-drive tourism platform called "One-Click Service for Touring Around Inner Mongolia," providing more convenient travel planning and route design for self-drive tourists

When it comes to the best places for camping trips, Inner Mongolia offers grassland pastures, mountain forests, desert oases, rivers, lakes, and canyons. These locations are ideal camping sites and popular Instagram-worthy spots for tourists. The Ulan Hada Volcano Geopark in Ulanqab is known as a natural "volcanic museum." The complete volcano group is set within the vast grassland, and the unique landforms make visitors feel like they are on the Moon or Mars. Camping here allows people to explore the mysterious volcanoes during the day and stargaze at night.

For vacation spots, the Ulgai Prairie features a vast expanse of green grass, and the meandering stream in the beautiful Jiuquwan scenic area is enchanting. The Xiangshawan (Sounding Sand) Desert in Erdos is magnificent, with fascinating views of galloping horses. Arxan Mountain, newly included in the national register of tourist resorts, offers beautiful scenery year-round: azaleas cover the mountains in spring, green hills stretch across the landscape in summer, trees display red leaves in autumn, and snow creates a dreamy winter scene. With a vegetation coverage rate of 95% and over 98% of days with good air quality, Arxan Mountain is a well-deserved natural oxygen bar.

For health and wellness travel, Inner Mongolia is the perfect summer retreat to escape the heat. We have developed a new migratory bird-style healthcare model by combining resources such as spa services, sand therapy, green dietary therapy, and traditional Mongolian medicine and healthcare. In July, the average temperature in Hexigten Banner is only 21.3 degrees Celsius. The Arshatu "glacial stone forest" is stunning and unique, and the warm hot springs of Reshuitang town provide an excellent place to refresh the body and mind, attracting many tourists from home and abroad.

Summer has arrived, and we would like to extend a sincere invitation to friends nationwide. We have prepared beautiful views, delicious food, and fine wines for you in the most amazing season on the grassland. Come and have a "date with the prairie." Thank you!

National Business Daily:

We understand that Inner Mongolia has introduced various policies and measures to promote the development of the private economy, such as setting up service windows and a service hotline for private enterprises. What plans and specific initiatives will be taken next to support the development of private enterprises? Thank you. 

Wang Lixia:

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

Gong Mingzhu:

Thank you for your question. Last year, non-governmental investment in Inner Mongolia increased by 14.2% year on year, ranking top in China. The private economy contributed to 54% of the region's total tax revenue and over 90% of new employment. The private sector has become a new growth driver for economic development in Inner Mongolia. Promoting development of the private sector requires systematic efforts. In order to coordinate the strengths of all parties and make every effort to provide all-round service and support for the development of the private economy, the Inner Mongolia autonomous region has established the Private Economy Development Commission, the Party Committee of Key Private Enterprises, and the Service Bureau for Private Economy Development, creating a sound environment for private enterprises.

We aim to provide more considerate services to help private enterprises solve practical problems. We have established a comprehensive service platform for private enterprises and set up service windows for key private enterprises. All departments related to services for enterprises at the levels of autonomous region, league/city and banner/county have joined this platform to process and resolve the concerns of enterprises, enabling enterprises to have easy access to getting their concerns solved. The platform has set up a window for enterprises to report their issues and receive prompt resolutions. The saying, "If enterprises encounter difficulties, they can seek help from the comprehensive service platform" has been spread widely among enterprises in Inner Mongolia.

We aim to improve efficiency in terms of handling matters so as to free enterprises from the difficulties of accessing government services, and allowing their problems to be solved in one visit. We have simplified the procedures and integrated highly relevant and frequently occurring issues during the whole process from starting a business to exiting the market, developing a full-life cycle service system for enterprises. At the same time, we have launched 13 one-stop government service packages, including enterprise information changes and credit repair.

We aim to enhance our support to ensure the implementation of preferential policies and enable enterprises to enjoy these policies directly and quickly. We will soon introduce the Opinions On Supporting High-Quality Development of the Private Sector, shifting from generalized broad-brush policies to targeted measures based on specific conditions, and focus on solving issues of greatest concern to private enterprises, including restrictions on market access and financing difficulties. At the same time, through the launch of projects to promote integrity and credibility, we have rewarded enterprises that have credibility and good faith with more benefits and introduced easy-access loans to private enterprises based on credibility assessment.

The business environment in Inner Mongolia is improving. We welcome more enterprises to invest and do business in Inner Mongolia. Thank you.

Guangming Daily:

Inner Mongolia is building itself as a model autonomous region in all respects. Could you please elaborate on what aspects Inner Mongolia exemplifies as a role model? What steps have been taken to promote ethnic solidarity? Thank you.

Wang Lixia:

I'll take this question. Your question is regarding in which aspects Inner Mongolia serves as a role model, I would say it "is a role model in adhering to the Party's overall leadership." As you all know, Inner Mongolia is the first ethnic minority region where our Party established Party organization. It is also the first provincial-level autonomous region set up under the direct leadership of the CPC Central Committee. From its establishment in 1947 until today, 77 years have passed. Over these 77 years, Inner Mongolia has developed under the care and support of the CPC Central Committee. As early as the first Five-Year Plan period, the state has invested in building factories and railways in Inner Mongolia. The construction of the No. 1 Machine Manufacturing Factory, the No. 2 Machine Manufacturing Factory, and the Greater Khingan Mountains forest industrial base all began during that period. Especially in the construction of Baotou Steel Industrial Base, with the support of over 80,000 experts and workers from all over the country, the No. 1 blast furnace was built in just over eight months, writing a splendid history of "concerted efforts to build the Baotou Steel Industrial Base."

For 77 years, people of all ethnic groups in Inner Mongolia have always kept in mind the good deeds of and been grateful to the Party and considered the national interest and the general situation. Let me give you an example. In the early 1960s, people in Inner Mongolia accepted over 3,000 orphans from Shanghai and Jiangsu and raised these "children of the state." An elderly woman called Duguima, known as the "Mother of the Grassland," adopted 28 orphans herself. That is the widely known and touching story of "3,000 orphans entering Inner Mongolia." Raised by people on the grasslands, these children have grown up to contribute to various sectors and industries as engineers, doctors, teachers, and so on. Nowadays, they are over 60 years old and live happy lives with their children and grandchildren.

Let me give you another example. In 1958, in order to support the construction of the Dongfeng Aerospace City, Ejin Banner was relocated three times, with the banner's government moving 140 kilometers away. Local herders contributed the best pasture to China’s space industry. That is the touching story of "contributing the best pasture to the space industry." Today, China’s manned spacecrafts are launched and land here. There is also an elderly woman called Nima, who has been awarded as the "Role Model of the Northern Frontier." Two generations of her family have overcome the harsh natural environment and guarded the border for half a century. She is known as the "living boundary monument" on the border line.

In the new era, General Secretary Xi Jinping has visited Inner Mongolia three times and attended the deliberation sessions of the Inner Mongolia delegations of the National People's Congress five times, pointing out the direction and offering guidance for the development of Inner Mongolia. It can be said that Inner Mongolia’s development achievements have been made under the care and guidance of the general secretary. On his inspection tour of Inner Mongolia last year, General Secretary Xi Jinping proposed for the first time that we should advance works in ethnic minority regions with a focus on forging a strong sense of community for the Chinese nation. Focusing on that, we issued the Decision on Building a Model Autonomous Region in All Respects as well as 28 concrete measures concerning the implementation of forging a strong sense of community for the Chinese nation. We have also introduced and implemented the promotion regulations, put forward and created the brand of "Northern Frontier Culture," and carried out regular activities along the theme of "be grateful to the Party and follow the Party and its guidance." Nowadays, a spirit of unity and harmony prevails among all ethnic groups. Whether in rural and pastoral areas or urban communities, people make close friends, cultivate harmonious neighborly relations, and have happy marriages.

As the Chinese saying goes, "Seeing is believing.” Here, I’d like to sincerely invite you to visit Inner Mongolia. The vibrant scenes and rapid development of China’s northern frontier will leave you with a new understanding of Inner Mongolia. The genuine warmth of the people on the grassland will leave you captivated and forget to leave. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thank you to the four speakers and friends from the media. Goodbye.

Translated and edited by Xu Xiaoxuan, Wang Wei, Liu Sitong, Yuan Fang, Guo Yiming, Gong Yingchun, Huang Shan, Yan Bin, Yan Xiaoqing, Xu Kailin, Zhang Junmian, Li Huiru, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Zhao Gang, deputy secretary of the Communist Party of China (CPC) Shaanxi Provincial Committee and governor of Shaanxi province 

Mr. Wang Xiao, a member of the Standing Committee of the CPC Shaanxi Provincial Committee and executive vice governor of Shaanxi province

Mr. Wang Haipeng, vice governor of Shaanxi province and secretary-general of the People's Government of Shaanxi Province

Mr. Sun Ximin, director of the Shaanxi Provincial Development and Reform Commission

Chairperson:

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

Date:

June 6, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 27th briefing in the series "Promoting High-Quality Development." Today, we have invited Mr. Zhao Gang, deputy secretary of the Communist Party of China (CPC) Shaanxi Provincial Committee and governor of Shaanxi province, to brief you on writing a new chapter in Shaanxi's development and striving to be a pacesetter in China's western region, and to take your questions. Also present today are Mr. Wang Xiao, a member of the Standing Committee of the CPC Shaanxi Provincial Committee and executive vice governor of Shaanxi province; Mr. Wang Haipeng, vice governor of Shaanxi province and secretary-general of the People's Government of Shaanxi Province; and Mr. Sun Ximin, director of the Shaanxi Provincial Development and Reform Commission.

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

Zhao Gang:

Friends from the media, good morning. It's a great pleasure to meet you here. First of all, on behalf of the CPC Shaanxi Provincial Committee and the Shaanxi provincial government, I'd like to express gratitude to you all for your long-term interest in and support for Shaanxi's economic and social development. 

General Secretary Xi Jinping has always cared about the people in Shaanxi and the development of the province. He has visited Shaanxi many times and offered guidance, entrusting us with the important mission of making new contributions to Chinese modernization. Firmly bearing in mind the expectations of General Secretary Xi Jinping, Shaanxi has been consistently advancing high-quality development. Over the past 10 years, Shaanxi's GDP has grown at an average annual rate of 6.4%, reaching 3.38 trillion yuan last year and passing two trillion-yuan milestones in succession. The overall features are as follows: 

First, innovation and industries have been integrated at a faster pace. As a vital national center for scientific research, culture and education, Shaanxi has unleashed its innovation potential by leveraging its scientific and educational strengths. Over the past decade, Shaanxi's spending on R&D as a share of GDP has increased by 0.31 percentage point, reaching 2.34%. The volume of contracted technology transactions has surged by over 350 billion yuan, exceeding 410 billion yuan. The comprehensive scientific and technological innovation index has reached 71.72%, up by 15 percentage points. Three national industrial clusters, namely for the aviation industry, integrated circuits and advanced structural materials, have been nurtured. The efficiency of photovoltaic cells has repeatedly broken world records. Superconductors, ultra-high-voltage power transmission, new-type displays and other technologies have reached international standards. It leads the country in modern coal chemicals, high-end drones, metal-based additive manufacturing, and dry and water-efficient agriculture. The scale of industries such as new energy vehicles (NEVs) and semiconductors rank among the top nationwide. The scale of the titanium processing industry and production of heavy-duty truck transmissions both rank first globally. Over the past three years, the number of high-tech enterprises as well as small- and medium-sized sci-tech enterprises have increased by 1.9 times and 1.6 times, respectively. The value-added of high-tech manufacturing has grown at an average annual rate of 12%, which is 2.8 percentage points higher than the national average, propelling innovation-driven development onto the fast track.

Second, regional development has become more coordinated. We have enhanced the leading role of central Shaanxi, promoted transformation and upgrading of the energy industry in north Shaanxi, and supported green and circular development in south Shaanxi. The integration of Xi'an and Xianyang has accelerated with stronger momentum, with subway lines connecting the downtown areas of the two cities and cross-city access to 380 government services including enterprise registration. Over the past decade, the GDP of Shaanxi's counties has reached 1.62 trillion yuan, nearly doubling. The urbanization rate has reached 65.16%, up by 13.59 percentage points. The poverty alleviation work has been successfully completed, and rural revitalization has been promoted on all fronts. A bumper harvest has been secured for the 20th year in a row, with wheat, rapeseed and tomato breeding technologies leading the country. Shaanxi boasts nine national agricultural industrial clusters based on its characteristics and strengths, ranking among the top nationwide. One out of every seven apples and every four kiwifruits in the world originate from Shaanxi. Local specialties such as goat milk, fungi and tea are developing into major industries. 

Third, reforms and opening-up have been deepened. We have earnestly conducted the "Business Environment Breakthrough Year" event. We have continued to advance the market-oriented reform of production factors, including "evaluation by per-hectare efficiency," constantly enhancing the efficient allocation of land, technology, data and other production factors. By the end of last year, the number of enterprises reached 1.565 million, an increase of 3.1 times over the past decade. Solid progress has been made in the reform of state-owned enterprises (SOEs), with provincial SOEs leading the nation in indicators such as revenue, total profit and return on equity. We have actively integrated into the Belt and Road Initiative (BRI), leading the way in establishing air routes connecting all the five Central Asian countries of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. The SCO Demonstration Base for Agricultural Technology Exchange and Training in Shaanxi's Yangling Agricultural Hi-tech Industrial Demonstration Zone has trained over 4,700 officials and technical professionals from more than 130 countries. Over the past three years, the annual number of China-Europe freight trains departing from Shaanxi has increased by 12.8% on average, exceeding 5,300, with key indicators such as the number of operating trains, the heavy-haul rate and freight volume all ranking among the top nationwide. Over the past decade, Shaanxi's total imports and exports have grown at an average annual rate of 14.2%, 9.2 percentage points higher than the national average. A total of 38 innovative practices explored in China (Shaanxi) Pilot Free Trade Zone, such as integrated tax refund services, customs clearance simplification, notes financing for scientific and innovative enterprises, have been promoted nationwide. 

Fourth, the ecological environment has been remarkably improved. We have kept in mind the country's most fundamental interests and acted on the idea that lucid waters and lush mountains are invaluable assets. We have witnessed 99.3% of the ecological areas within the Shaanxi section of Qinling Mountains reaching good quality. Forests, grasslands and wetlands account for 71.3% of the province's total area. The annual amount of sediment entering the Yellow River from its main tributaries has decreased by 30% compared to the previous decade. In addition, the water quality of water sources in the middle route of the South-to-North Water Diversion Project has been kept above Class II. Our efforts for green transition have picked up pace. All coal-fired power plants have met ultra-low emission standards, and the renewable energy capacity has increased by 8.5 times over the past 10 years, exceeding 40 million kilowatts. Additionally, we have made new advances in carbon capture and storage technology, capturing and storing a total of 450,000 tons of carbon dioxide.

Fifth, people's well-being has continued to improve. Over the past three years, more than 400,000 new urban jobs have been created each year, and residents' per capita disposable income has grown by an average of 7% annually. Higher education has seen high-quality development, with eight universities and 20 academic disciplines being included in the national Double First-Class Project. Moreover, eight higher vocational colleges and 12 majors have been included in the plan for building up world-class higher vocational colleges and majors with Chinese characteristics. Such numbers rank among the top in the country. Construction of the regional medical center for children's health in northwest China has witnessed rapid progress. The operating high-speed railway network in the province has expanded to 1,000 kilometers, while expressways have reached over 6,700 kilometers. This network has made it possible for every county to be connected by expressways, significantly improving transportation convenience for the public. Moreover, Shaanxi hosted the 14th National Games of China with splendor and success. A batch of signature cultural venues and museums have been completed and opened to the public, such as the Xi'an branch of the China National Archives of Publications and Culture and the Shaanxi Archaeology Museum. All these have been helpful for enriching people's cultural lives. Development of the cultural tourism sector has gained momentum. Last year, the number of tourists visiting Shaanxi province increased by 106.5% year-on-year. The daily average number of visitors to the Datang Everbright City scenic area reached 450,000 during the May Day holiday. Shaanxi is drawing in an increasing number of visitors, who come to admire its ancient treasures, explore its historical sites, and immerse themselves in the elegance of traditional Hanfu attire and China's rich cultural heritage.

On the new journey ahead, we will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and push the high-quality development to higher levels, making new breakthroughs. I'd like to invite friends from all walks of life to visit Shaanxi to immerse yourselves in the captivating charm of Shaanxi and witness its progress. Thank you. 

Shou Xiaoli:

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

Science and Technology Daily:

Given Shaanxi's abundant scientific and educational resources, as Mr. Zhao just mentioned, could you please elaborate on the efforts Shaanxi has made to transform these resources into strengths for innovative development? Thank you.

Zhao Gang:

Thank you for your concern about the innovative development within Shaanxi province. Shaanxi province is outstanding for its abundant scientific and educational resources, as it is home to more than 110 colleges and universities, over 1,800 research and academic institutions as well as 27 key national laboratories. A total of 74 academicians of the Chinese Academy of Sciences and the Chinese Academy of Engineering have been working in Shaanxi, and the number of professional personnel here has reached more than 2.3 million. We are planning the construction of six national major scientific infrastructure projects. Given all this, I would say innovation is the cornerstone of Shaanxi's strength, the wellspring of its potential and the source of its confidence. We have made great efforts in two aspects to ensure scientific innovation serves as an engine for economic growth as well as a new driver for development. 

First, focusing on what the country needs, we have made all-out efforts to promote China's greater self-reliance and strength in science and technology. For a long period of time, Shaanxi has been committed to integrating itself into national systems for scientific and technological innovation and has made its own contribution to national major sci-tech projects, such as the Shenzhou program, the Chang'e lunar exploration program, the Jiaolong deep-sea submersible program and the Tianwen Mars mission. In recent years, Shaanxi province's number of wins at the state science and technology awards has ranked among the top. Going forward, we will accelerate the construction of a comprehensive national science center and a sci-tech innovation center in Xi'an, and make improved efforts in building the major national science and technology infrastructure projects, including the National Time Service Center and the National Translational Science Center for Molecular Medicine. By making effective use of these facilities, Shaanxi's technological innovation capabilities are expected to further enhance. We will promote closer enterprise-led collaboration between industries, universities, and research institutes, making breakthroughs in some core technologies in key fields. Currently, Shaanxi province is taking the lead in the conversion efficiency of photovoltaic cells and the manufacturing of large-diameter silicon materials for integrated circuits. We strive for innovation, so that we can maintain our technological leadership in various fields. Moreover, we will improve the system for creating laboratories. While striving to establish national laboratories, we will also build a network of regional laboratories in Shaanxi, including provincial key laboratories. Overall, we will better align Shaanxi's capabilities with the country's needs so that we can develop more equipment and projects of great significance for the country. 

In addition, we have expedited the efforts to promote the application of scientific and technological advances in a bid to help facilitate Shaanxi's high-quality development. Sci-tech advances can only translate into tangible productivity when lab-based progress is effectively applied in the market. In recent years, we significantly bolstered the development of the Qinchuangyuan innovation-driven platform. Through the implementation of three reform projects targeting the hesitancy, reluctance and financial constraints concerning the application of sci-tech advances, we have achieved many encouraging results and witnessed significant changes in recent years. Over the past three years, the number of patents issued in Shaanxi grew by 180%, and the volume of contracted technology transactions surged by 230%. The principle role of enterprises in sci-tech innovation has become increasingly prominent. In 2023, research and development (R&D) spending by enterprises across the province experienced a year on year increase of 15.3%, surpassing the national average by 4.3 percentage points. The number of high-tech enterprises also escalated from over 6,000 in 2020 to 16,000 in 2023, surpassing the target of 10,000 that is outlined in Shaanxi's 14th Five-Year Plan.

All these changes demonstrate that a robust and innovative ecosystem surrounding sci-tech R&D, business incubation and industrialization is taking shape at an accelerated pace in Shaanxi. Moving forward, we will continue to develop our innovation platform, leverage our reform experience and enhance our capacity in the application of sci-tech advances, so as to further empower the high-quality development of Shaanxi. Thank you.

21st Century Business Herald:

We acknowledge that Shaanxi has been promoting high-quality development in recent years, and has rolled out a number of major projects in sectors such as new energy vehicles (NEVs), semiconductors and integrated circuits. Could you briefly speak on the progress made in these fields? Thank you.

Zhao Gang:

Thank you for your interest in and support for Shaanxi's NEV sector and other emerging industries.

Shaanxi boasts a complete industrial system and serves as a key manufacturing base in China. It has the foundation, conditions and advantages needed to develop a modern industrial system with distinctive Shaanxi characteristic and to foster new quality productive forces. In recent years, focusing on establishing such industrial systems, we have nurtured a number of industrial chains and clusters characterized by the new quality productive forces.

We have leveraged the anchor role of energy industries. Shaanxi is a major energy-producing province in China with the output of coal, petroleum and natural gas ranking among the highest in the country. In the meantime, a significant portion of the coal, petroleum and natural gas that we produce is also supplied to our sister provinces. As a key energy producer, Shaanxi has contributed its part to the nation's energy security system. In recent years, we have also accelerated the development of clean energy project and those concerning energy storage, providing stronger support for China's energy security.

Moreover, Shaanxi possesses abundant high-quality coal resources. We have developed a number of coal chemical projects in the northern part of the province. Focusing on manufacturing high-end, diverse and low-carbon products, we have created industrial chains that encompass coal products, chemical products and refined oil products. As a result, numerous key national industrial projects have settled and formed synergies in northern Shaanxi.

Shaanxi is fast-tracking toward advanced manufacturing. The NEV and semiconductor sectors, as you mentioned earlier, are key representative industries, highlighting the new quality productive forces that we keep nurturing. Our NEV sector is experiencing robust growth momentum. We have built manufacturing bases for the battery, motor and electric control system, and have established a development pattern that focuses on passenger cars, key components and batteries. Shaanxi's NEV output has maintained an average annual growth of 160% over the past three years. In terms of photovoltaic (PV) solar energy, Shaanxi has achieved world records in three categories. The conversion efficiency of its crystalline silicon solar cell has repeatedly broken world records. Its shipments of silicon wafer, a key material in producing solar cells, and diamond wire, a key material for processing solar cells, both rank the highest around the world. In 2023, Shaanxi saw a year-on-year increase of 150% in the output of solar cells.

The province's semiconductor industry is also experiencing robust growth. Shaanxi has attracted more than 300 renowned enterprises, research facilities and institutes in the field. Its production capacity of flash memory chips accounts for nearly 15% of the world's total.

Moving forward, we will develop a group of advanced manufacturing clusters at the national level as well as provincial-level manufacturing clusters with distinctive features. We will further advance the development of a modern industrial system supported by advanced manufacturing.

In the meantime, we will focus on industries of the future, keep nurturing innovative industrial clusters with potential advantages, such as those involving photonics, artificial intelligence and superconducting materials. We will also work continuously to explore new opportunities in low-altitude economy, hydrogen power and energy storage, and biomedicine, in a bid to accelerate the development of more new quality productive forces. Thank you.

Economic Daily:

A conducive business environment serves as a crucial foundation for achieving high-quality development. In recent years, Shaanxi has made efforts centering on streamlining the business registration process and improving tax services. What additional experience and measures has Shaanxi implemented in terms of improving the business environment?

Zhao Gang:

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

Wang Xiao:

Thank you for your question. As you mentioned, Shaanxi has conducted the Year of Business Environment Improvement campaign for two consecutive years, implementing a series of reform measures that are targeted, effective and replicable. These efforts aim to create a business environment with efficient administrative services, market-oriented policies, stronger productive factors, a more predictable legal system, and a cordial and clean government-business relationship. A total of 37 practices have been recognized and promoted at the national level, and two exemplary practices have been commended by the General Office of the State Council.

In terms of improving efficiency, we have focused on various fields and aspects of business operations and entrepreneurship for enterprises and the public. We have made efforts in multiple aspects such as reducing time, optimizing processes and standardizing procedures. As a result, business registration can now be completed within one working day, property registration time has been reduced to 2.5 working days, 396 administrative services can be processed provincewide, and 156 services can be handled across provinces. Additionally, we have introduced services such as "project stewards" to help or act for enterprises in dealing with administrative procedures, supporting their innovative development. 

In terms of stimulating business vitality, we have established a platform to collect information on market access barriers and have strictly enforced the negative list for market access. We hold government-business consultation meetings at various levels every month, carry out actions to remove obstacles to policy implementation and provide special financing services, continuously work to clear overdue payments to enterprises, and strive to address difficulties in accessing policy support, obtaining financing services and credit enhancements, and handling administrative procedures. These efforts aim to let enterprises make investment and operate and develop businesses confidently, without being distracted or disturbed. In 2023, the province registered 990,600 new business entities, an increase of 20.56%, with business vitality continuing to rise.

In terms of optimizing service regulation, we have established and improved mechanisms for connecting and serving private enterprises. We actively seek input from businesses on the front lines of production and project construction and explore the implementation of a service-oriented law enforcement model in market regulation. We have launched a one-stop service platform for Shaanxi enterprises, proactively promoting favorable policies to directly benefit enterprises, which has been widely welcomed by business entities.

In terms facilitating trade and investment, we have emphasized leveraging the pioneering role of the pilot free trade zone, accelerating the development of efficient, cost-effective and high-quality international trade channels. We have also been creating a demonstration zone for international commercial legal services under the BRI. The China-Europe Railway Express (Xi'an) has ranked first in the country in key indicators such as the number of trains, freight volume and proportion of loaded containers. International goods have been able to be picked up and loaded immediately 24 hours a day, resulting in a 30% reduction in logistics costs. By 2023, we had established air routes with all five Central Asian countries, leading to a 2.2-fold increase in exports to Central Asia.

Next, we will further prioritize proactive government efforts to drive market efficiency, and foster a first-class business environment to support high-quality development and modernization.

Thank you.

Changjiang Daily:

Of the water volume in the middle route of the South-to-North Water Diversion Project, 70% originates from Shaanxi province. Shaanxi bears the important mission of sustaining a continuous flow of clean water to the north. What efforts has Shaanxi made in terms of water ecological environment protection and continuous improvement of the ecological environment? Thank you.

Zhao Gang:

Thank you for your interest in Shaanxi's ecological environment. I would like to invite Mr. Wang Haipeng to answer.

Wang Haipeng:

Shaanxi is a crucial water conservation area for the middle route of the South-to-North Water Diversion Project, with 70% of the water consumed by the people in Beijing coming from Shaanxi. We prioritize the protection of the Hanjiang River and Danjiang River, safeguarding these crucial water sources through coordinated efforts. The idea of ensuring a continuous flow of clean water to the north has deeply resonated with the people of Shaanxi. Currently, the environment here can be characterized by "fish swimming in the shallows and harmony between humans and water." The population of crested ibis, which has extremely high requirements in terms of the quality of the ecological environment, has grown from just seven individuals to nearly 7,700 throughout the province. Shaanxi spans the Yangtze River and Yellow River basins, boasting abundant ecological elements, but is also highly vulnerable. Our entire province always keeps the grand vision of our nation in mind and strives to contribute to the overall ecological environment of the country.

Zhao Gang: 

We have preserved the three ecological shields, including the waterhead region of the middle route of the South-to-North Water Diversion Project, the Qinling Mountains and the Yellow River. Through systematic eco-environmental protection and restoration, we have focused on biodiversity conservation in the Qinling Mountains, achieving the highest levels of ecological quality, as Mr. Zhao just mentioned. We have also made significant efforts to protect the Yellow River, our mother river, by carefully managing its water resources. We have coordinated efforts between the upper and lower reaches, left and right banks, main and tributary streams, soil reinforcement and afforestation, source control and resource conservation, pollution control, sediment reduction, and water consumption reduction. Thanks to these endeavors, we have transformed the Weihe River, flowing over 500 kilometers across the Guanzhong Plain, into what is now called the most beautiful river in our homeland. The clear splashing waters at Hukou Waterfalls have become a spectacular sight.

We are making strenuous efforts in two fields. The first is pollution prevention and control. We focus on both substantially treating symptoms and addressing root causes through a holistic approach. Pooling the strengths of the entire province, we carried out a special action to control air pollution across our central region, or the Guanzhong area, achieving preliminary results. Now, you can enjoy a serene view of the Qinling Mountains from the Great Wild Goose Pagoda. We have ensured drinking water quality, eliminated murky and stinky waters, cleansed river and lake waters, and preserved sufficient ecological water. The province's water quality has continued to improve. We have also enhanced the safe utilization of polluted farmland and land for construction use, effectively managing soil-related environmental risks. The second field is the conservation and development of areas surrounding the bends of the Yellow River. We have made great efforts in the comprehensive management of the Mu Us Desert in the north, the desertified Baiyu Mountains, and soil erosion in the Loess Plateau, extending lush greenery 400 kilometers northward. We are promoting green transformation. We have made coordinated efforts to empower the central region with scientific and technological strengths, push energy transformation in the north, and boost green upgrading in the south, accelerating green and low-carbon transformation and development. By implementing these initiatives, we have realized the rapid expansion of industries such as photovoltaic energy, new energy passenger vehicles, and semiconductor and integrated circuits, with their output value surpassing 100 billion yuan each. We have continued to act on the principle that lucid waters and lush mountains are invaluable assets. Today, people in southern Shaanxi benefit from favorable ecological conditions.

Going forward, we will stay focused on taking a holistic and systematic approach to further deepening the protection and conservation of mountain, water, forest, farmland, grassland, and desert ecosystems. We will build a beautiful Shaanxi with a fresh look to contribute to the construction of a beautiful China. Thank you.

CNR:

Shaanxi boasts rich cultural tourism resources, including the Great Wild Goose Pagoda, Terracotta Warriors, and ruins of Qin dynasty palaces and Han dynasty mausoleums, attracting constant visitors. So, how are you improving visitors' experiences and promoting high-quality cultural tourism industry development? Thanks. 

Zhao Gang:

Thanks for your interest in our cultural tourism sector. Please give the floor to Mr. Wang Xiao.

Wang Xiao:

Thank you for your keen attention to Shaanxi's cultural tourism. Shaanxi has a profound history and rich cultural heritage; it enjoys a reputation as a history museum by nature. From the Yellow Emperor's Mausoleum and the Terracotta Warriors to the Lingshan Temple Pagoda, the Qinling Mountains, and the Huashan Mountain, the province boasts landmarks of Chinese civilization, revolutionary history, and important geological marvels. In recent years, we have integrated the cultural and tourism industries to reinforce each other, exploring and showcasing the unique charm of Shaanxi, improving the tourist experience, and boosting the high-quality development of the cultural tourism sector. We have mainly focused our efforts on three aspects:

First, we strive to make the authentic charm of Shaanxi reverberate across time and space. We have coordinated efforts in cultural relic protection, civilization inheritance, and cultural development, bridging history and modernity. Tourists can experience the profound history, magnificent landscapes, and cultural achievements of Shaanxi through the 6,000-year-old Banpo relic site, the 4,000-year-old Shimao site, the hezun (bronze wine vessel) that is the oldest known relic with characters reading "Middle Kingdom (China)," the capital sites of 14 dynasties from Zhou, Qin, Han to Tang, the Qinling Mountains — the cradle of the Chinese civilization — and the traditional Qinqiang Opera. In Yan'an, a sacred place to remember the revolutionary history, visitors can trace the successful path of the CPC. They can also be inspired by the development achievements of the new era and remain committed to continuous efforts. In Shaanxi, you can explore valuable artifacts, reflect on the passage of time, and embrace the splendid Chinese civilization, gaining a better understanding of the zeitgeist of our time and strengthening cultural confidence.

Second, we strive to display Shaanxi's charm in different dimensions. The cultural tourism economy has become innovation-driven and entered a new stage of sustainable prosperity. We understood the patterns and characteristics of this new stage of development and mapped out eight major industrial chains, expanding and improving the integrated cultural tourism development paradigm centered on Xi'an and expanding across the province. Tourism products highlighting cultural relics, art performances, and poetry have become popular. Tourists are staying longer and spending more. For the Spring Festival Gala in the Year of the Dragon, Xi'an sub-venue provided an amazing show to present its timeless charm, incorporating a famous poem by Li Bai, "Qiang Jin Jiu (Bring in the Wine)," highlighting the romance of Shaanxi. The Datang Everbright City tourism spot and the TV series "The Longest Day in Chang'an" are popular. Revolutionary sites are crowded with visitors, and people dressed in traditional Chinese costumes stroll around the Bell and Drum Towers and under the ancient city wall. Performances, including the dance drama "The Song of Everlasting Sorrow" and the stage play "Yan'an Nursery School," have sold well, and rural destinations such as Yuanjia village and Zhujiawan village have surged in popularity. In 2023, the number of tourists and tourism revenue in the province increased by 106.5% and 150.6%, respectively.

Third, we are dedicated to showcasing Shaanxi's charm and fostering friendships. As the starting point of the ancient Silk Road, Shaanxi is diligently implementing the outcomes of the China-Central Asia Summit related to the province, and leveraging platforms such as the inaugural general assembly of the Alliance for Cultural Heritage in Asia, the Fourth Chinese Archaeology Congress, the Silk Road International Arts Festival and the 14th China-U.S. High-Level Dialogue on Tourism. We will develop new intellectual properties featuring the Silk Road culture and tourism, and introduce a series of inbound tourism facilitation measures amid our efforts to create a world-class tourism destination that inherits Chinese culture, and share stories about Shaanxi, the Silk Road and China. 

Next, we will persist in upholding fundamental principles, breaking new ground, enhancing quality and efficiency, and promoting integrated development. By doing so, we will contribute to the country's efforts to build up its strengths in culture and tourism industries and develop a modern Chinese civilization. We warmly invite more friends from China and abroad to visit Shaanxi and fall in love with it.

Thank you.

Hong Kong Bauhinia Magazine:

The resource endowments and development foundations of Shaanxi's three major regions - Guanzhong region, northern Shaanxi, and southern Shaanxi - differ significantly. What efforts has Shaanxi made in recent years to promote regional coordinated development? In what areas will it continue to focus its efforts? Thank you.

Zhao Gang:

Thank you for your questions; I will answer them. As you mentioned, northern Shaanxi is the Loess Plateau, the central region is the Guanzhong Plain, and southern Shaanxi is the Qinba Mountains area. Each region has its own distinct geographical environments, resource endowments, and economic foundations. Over the years, we have emphasized the overall development of the province, focusing on the strategic development of county-level economies. We have implemented a differentiated management approach based on the distinct strengths of industrial, agricultural, and ecological counties to maximize regional advantages. In 2023, the aggregate GDP of counties in the province reached 1.62 trillion yuan, accounting for 48% of the provincial total, which has played a significant role in driving the overall economic growth of the province and promoting mutual empowerment and coordinated development among the three major regions.

In the Guanzhong region, we have focused on sci-tech innovation and advanced manufacturing. Nearly 90% of the province's total social R&D expenditure is concentrated in the region, with an investment intensity of 3.35%, which is 0.8 percentage point higher than the national average. The region's strategic emerging industries closely related to innovation account for 80% of the province's total. The industrial division of labor and mutually beneficial effects of integration in the region are gradually strengthening, forming a good situation where Xi'an serves as the center, focusing on innovative development, and driving the coordinated development of industries in surrounding cities such as Xianyang, Weinan, Baoji, and Tongchuan. In northern Shaanxi, we are accelerating the energy transformation, and jointly initiated the development of the Yulin Energy Revolution Innovation Demonstration Zone with the Chinese Academy of Sciences. As I mentioned earlier about the industrial system in Shaanxi, northern Shaanxi is accelerating the development of its energy industries. Through years of effort, the economic output and the industrial value added of Yulin and Yan'an now account for 28% and nearly 50% of the provincial total, respectively, contributing to over 20% of the province's economic growth.

In southern Shaanxi, we are prioritizing green and circular development, piloting mechanisms to realize the value of ecological products. We are vigorously developing eco-friendly industries such as special agriculture, green energy storage, tourism, healthcare, and consumer goods manufacturing. Notably, with the development of wind and solar power in northern Shaanxi, we have laid out multiple pumped storage projects in southern Shaanxi, complementing the green energy projects in the north. Additionally, the consumer goods manufacturing industry has thrived in southern Shaanxi, with sectors like selenium-rich foods and plush toys demonstrating strong job creation potential. This embodies the principle that lucid waters and lush mountains are invaluable assets. Next, we will further deepen green and circular development in southern Shaanxi, continuously promoting the unity of ecological, social, and economic benefits. Thank you.

The Beijing News:

I came across some data online indicating that while there is still an income gap between Shaanxi and the eastern coastal provinces, the growth rate of income in Shaanxi remains relatively rapid. Could you briefly outline the measures Shaanxi has taken to boost residents' income? Thank you.

Zhao Gang:

I'll invite Mr. Sun Ximin to address this question.

Sun Ximin:

Thank you for your question and your concern for the well-being of the people of Shaanxi. As a western province with a population of nearly 40 million, Shaanxi still faces a significant income gap with the eastern coastal provinces, a key challenge to our modernization efforts. In recent years, we have prioritized increasing residents' income as a key annual livelihood project, focusing on achieving prosperity for all. We have made every effort to boost residents' income and prosperity. Over the past three years, the annual average growth rate of per capita disposable income has surpassed the economic growth rate for the same period. We have mainly focused on four aspects of work:

First, we have boosted incomes through employment assistance. We have effectively implemented a combination of policies, such as helping enterprises stabilize jobs, expanding employment and vocational training, and made every effort to stabilize employment and laid a solid foundation for the growth of wage income, which is the main source of personal income. For example, in the case of work-relief programs, in the past three years, we have allocated 1.613 billion yuan in special funds to support 859 projects, involving more than 40,000 rural migrant workers, so that farmers can work and earn money locally.

Second, we have boosted incomes through the development of featured industries. We have mainly focused on vigorously developing county economies, continuously expanding a group of featured leading industries such as apples, kiwis, selenium-enriched foods, edible fungi, dairy goats and sundry grains, and driving the steady growth of personal operating incomes. For example, the output value of the Shaanxi apple industry chain exceeds 130 billion yuan, and Yan'an's income from apples contributes more than 60% to the operating income of rural residents.

Third, we have boosted incomes by increasing the value of property. We have steadily promoted collective economies through the "eliminating weakness and strengthening strength" initiative, focusing on increasing the proportion of village-level collective economic organizations that distribute dividends, and better supporting the growth of personal property income.

Fourth, we have promoted labor cooperation to increase incomes. We have deepened east-west cooperation with Jiangsu province, and through the labor cooperation mechanism, we have created nonagricultural employment opportunities for around 80,000 rural laborers in the past three years.

Promoting personal income growth is a long-term and basic task, for which we have also made plans and implemented a series of measures this year. For example, in terms of increasing incomes among rural residents, we have further promoted the development of rural industries, identified around 15 provincial-level modern agricultural full-industry chain guiding counties, and built 10 county-level livestreaming e-commerce bases with regional features. In terms of promoting employment, we have implemented a vocational skills improvement project, carried out government-subsidized vocational skills training for more than 300,000 people, and added 35,000 high-skilled talents.

We believe that by continuously implementing measures to increase incomes, people in Shaanxi will become richer and their lives will become more prosperous. Thank you.

Chengdu.cn:

Shaanxi is the province with the most neighbors in China. It borders eight provinces, autonomous regions and municipalities in China, and has unique geographical advantages, playing a role of a transportation hub. What steps has Shaanxi taken to build a modern comprehensive transportation system? Thank you.

Wang Haipeng:

Thank you for your question. Shaanxi is located in the geometric center of China. We have both advantages and responsibilities from connecting the north and south, and the east and west. We are promoting the integrated development of comprehensive transportation, supporting the BRI, and at the same time making every effort to develop into a new pacesetter for inland reform and opening-up.

First, we have connected the main transportation arteries. Four of the "eight vertical and eight horizontal" high-speed railways in national plans pass through Shaanxi. Five high-speed railway projects, from Xi'an to Yan'an, Xi'an to Chongqing, and Xi'an to Shiyan, are being accelerated. By 2028, all cities in Shaanxi will be connected by high-speed railways, with a total length of over 2,000 kilometers. We have expanded and intensified the expressway network, and comprehensively improved the expressway capacity and services through intelligent technologies. The total length of expressways in Shaanxi exceeds 6,700 kilometers, and its 24 national expressways are integrated into the national road network.

I would like to stress that, through our efforts, expressway service areas, which used to be more like resting points during travel, are now gradually becoming must-visit destinations for travel consumption.

Second, we have facilitated the internal flow of transportation. We have promoted regional coordinated development through transportation connectivity. Mr. Zhao just introduced the situation of the three major areas in Shaanxi. At present, the total length of highways in Shaanxi has reached 188,000 kilometers, an increase of about 23,000 kilometers in 10 years, and the connectivity and smoothness of the road grid have been improved. The length of the Xi'an subway will soon exceed 400 kilometers. The metropolitan area expanded by the rail lines has allowed the two ancient cities of Xi'an and Xianyang to shift from two cities to a city cluster, better supporting the integrated development of Xi'an and Xianyang. The 161,000 kilometers of rural roads stretch across the entire 200,000 square kilometers of Shaanxi. The basic service network of passengers, freight and mail at village, township and county levels has achieved full coverage. Today's construction, management, maintenance and operation of roads in rural areas have brought wealth, happiness, connectivity and revitalization to local rural residents.

Third, we have contributed to building an inland pacesetter of reform and opening-up. Xi'an Xianyang International Airport is one of the top 10 hub airports in China and ranks at the top in domestic aviation network accessibility. It currently operates 108 international air routes, connecting 86 cities in 43 countries and regions. Especially last year, in the lead-up to the China-Central Asia Summit, we took the lead in launching passenger and freight air routes covering five Central Asian countries. After one year's effort, the number of flights has quadrupled, and the number of passengers has increased fivefold. Moreover, the airport expansion is underway, with projects slated for completion by the end of this year. This airport will have four runways and terminals covering 1.09 million square meters. It will handle 83 million passenger trips and 1 million tons of cargo and mail annually. Mr. Zhao has just talked about the China-Europe Railway Express. At present, the number of China-Europe freight trains accounts for one-quarter of the national total, with trips reaching cities such as Madrid, Paris, and Rotterdam. The China-Europe Railway Express covers the entire Eurasian continent and has become one of the busiest international freight channels. The air hub and land port of the China-Europe Railway Express have become strong supports for Shaanxi's opening-up.

The comprehensive transport network, characterized by high efficiency, low cost, and good services, has facilitated people's travel and smoothed the flow of production factors, providing strong support for the high-quality development of Shaanxi. Next, we will accelerate the construction of a modern comprehensive transportation system and build a high-level inland pacesetter of reform and opening-up. Thank you.

Shou Xiaoli:

We'll have one last question, please.

China Daily:

Shaanxi is the starting point of the ancient Silk Road and an important node city of the BRI. What initiatives will be taken by Shaanxi to expand its opening-up? Thank you.

Zhao Gang:

Thank you for your question. I'll address it now. As the reporter mentioned, Shaanxi is an inland province. The BRI has brought historic opportunities to Shaanxi, positioning it at the forefront of China's opening up to the West. Currently, we are focusing on leveraging strengths in three aspects to transform the inland province into a pacesetter of reform and opening-up.

First, we are capitalizing on our industrial strengths to promote the development of an open economy. At present, Shaanxi has established economic and trade ties with nearly 200 countries and regions. Over the past decade, total imports and exports with Belt and Road countries have achieved an average annual growth of 17.5%, which is 5.9 percentage points higher than the national level. Last year, 513 new foreign trade entities were established in Shaanxi, and significant efforts were made to foster export-oriented enterprises. The export of heavy-duty trucks grew by 100%, and the export of new energy vehicles increased 11.5 times. Additionally, the export of integrated circuits accounted for nearly 10% of the national total.

In recent years, Shaanxi has made significant strides in attracting foreign investment. A number of world-renowned enterprises, including Samsung Electronics, Coca-Cola, and Yihai Kerry, have established operations in Shaanxi to expand their investments.

Next, we will work to foster more export-oriented business entities, support enterprises in developing cross-border businesses, continue to promote the export of competitive products, and optimize the environment for foreign investment to maintain the growth momentum for foreign trade and investment.

Second, we are leveraging our geographical advantages to enhance channels for opening-up. China-Europe freight trains from Shaanxi to Central Asia, West Asia, and Europe have been put into regular operation, with a total of 18 routes covering the entire Eurasian continent. China-Europe freight trains offer significant advantages in comprehensive logistics costs. The transport time is one-third that of maritime transport, and the average cost is one-ninth that of air transport.

We have launched the pilot land port for departure tax rebates, reducing the time for tax rebates to three days. At the same time, we have sped up the construction of the China-Europe Railway Express assembly center, put the Kazakhstan Xi'an Terminal into operation, and established a total of 53 overseas warehouses in 23 countries and regions. The China-Europe Railway Express has become a "steel camel fleet" connecting Asia and Europe. We will also make every effort to amplify the radiation effect of the China-Europe Railway Express assembly center in Xi'an and strive to build an international trade channel with higher efficiency, lower costs, and better services.

Third, we are leveraging our cultural strengths to enhance close exchanges and cooperation. We have fully activated historical and cultural resources and actively served overall national diplomacy. Shaanxi has established friendship relations with 113 provinces, states, and cities in 41 countries, including Russia and Kazakhstan. In terms of culture, Shaanxi has successfully hosted the General Assembly of the Alliance for Culture Heritage in Asia and the Silk Road International Film Festival. In terms of education, Xi'an Jiaotong University has launched the University Alliance of the Silk Road, and the Kazakhstan branch campus of Northwestern Polytechnical University has begun enrolling students. In terms of archaeological excavation, Shaanxi has conducted several joint archaeological explorations with Central Asian countries, signed cooperation agreements with eight countries and 14 research institutions under the BRI, and achieved fruitful results in a series of archaeological excavations of ancient city ruins in Central Asia.

We will focus on key areas such as culture, education, and tourism, and continue to enhance international cultural and people-to-people exchanges, contributing Shaanxi's strength in promoting global connectivity.

In the second half of the year, we will host major events in Shaanxi, such as the Silk Road International Exposition in Xi'an and the China Yangling Agricultural Hi-tech Fair in Yangling. Friends from home and abroad are welcome to attend these events, seek business opportunities, and achieve win-win outcomes. Thank you.

Shou Xiaoli:

Thank you to Mr. Zhao Gang and all the speakers. Thank you to all the media representatives for your participation. This concludes today's press conference. See you next time.

Translated and edited by Xu Xiaoxuan, Yuan Fang, Gong Yingchun, Zhu Bochen, Wang Qian, Zhang Junmian, Liu Sitong, Wang Yanfang, Liu Caiyi, Yan Bin, Wang Ziteng, Li Xiao, Zhou Jing, Xu Kailin, Li Huiru, David Ball, Jay Birbeck and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers:

Mr. Hu Henghua, deputy secretary of the Communist Party of China (CPC) Chongqing Municipal Committee and mayor of Chongqing 

Mr. Chen Xinwu, a member of the Standing Committee of the CPC Chongqing Municipal Committee, secretary-general of the CPC Chongqing Municipal Committee, and executive vice mayor of Chongqing

Mr. Zheng Xiangdong, vice mayor of Chongqing

Mr. Jiang Duntao, vice mayor of Chongqing

Chairperson:

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

Date:

June 5, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 26th briefing in the series "Promoting High-Quality Development." Today, we have invited Mr. Hu Henghua, deputy secretary of the Communist Party of China (CPC) Chongqing Municipal committee and mayor of Chongqing, to brief you on building Chongqing into a key strategic fulcrum for the development of China's western region in the new era and a comprehensive hub for inland opening-up, and to take your questions. Also present today are Mr. Chen Xinwu, a member of the Standing Committee of the CPC Chongqing Municipal Committee, secretary-general of the CPC Chongqing Municipal Committee, and executive vice mayor of Chongqing; Mr. Zheng Xiangdong, vice mayor of Chongqing; and Mr. Jiang Duntao, vice mayor of Chongqing.

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

Hu Henghua:

Friends from the media, good morning. I would like to express my gratitude to you for your long-term interest in and support for Chongqing. It's a great pleasure for me to brief you on Chongqing's economic and social development here. 

Chongqing, a municipality directly under the central government in central and western China, boasts the largest area and population among all cities in the country. It has undertaken multiple strategic missions including development of the Chengdu-Chongqing economic zone, the New International Land-Sea Trade Corridor, and the high-quality development of the Yangtze River Economic Belt. General Secretary Xi Jinping puts great importance on Chongqing's development. He visited the city in 2016 and 2019, and again in April this year to provide further guidance. He urged Chongqing to build itself into a key strategic fulcrum for the development of China's western region in the new era and a comprehensive hub for inland opening-up, thus making Chongqing's contribution to Chinese modernization. 

Since the 20th CPC National Congress, we have thoroughly implemented a series of important instructions and requirements made by General Secretary Xi Jinping, striving to advance high-quality development, create a high-standard of living, and facilitate highly efficient governance. Last year, Chongqing's GDP increased by 6.1%, making it the first city in central and western China to exceed 3 trillion yuan. In the first quarter of this year, its GDP grew by 6.2%, marking a good start and recovery momentum in economic and social development, securing solid progress in building a new and modern Chongqing. 

We have remained committed to pursuing high-quality development and fostering new quality productive forces according to local conditions. As a major manufacturing hub, Chongqing boasts all 31 major manufacturing categories. Adhering to the principle of building the city's foundation through industry and enhancing its strength through manufacturing, Chongqing is accelerating the construction of a modernized industrial system. As an old industrial base, Chongqing is experiencing a resurgence of new vitality. Intelligent connected new energy vehicles (NEVs), next-generation electronic information manufacturing, and advanced materials are growing into trillion-yuan level industrial clusters. Vehicle production has exceeded 2.3 million, with over 500,000 NEVs produced. One out of every three laptops in the world is made in Chongqing. The modern production service industry has empowered advanced manufacturing. The western financial center in the Chengdu-Chongqing area has gathered more than 1,800 financial institutions. Software and information service industries are thriving, creating a vibrant and expansive landscape. The workforce in these sectors has increased by nearly 150,000 in the past two years, totaling 369,000, with main business revenue exceeding 360 billion yuan. Regional cooperation and open development have expanded new horizons, with the tale of the two cities of Chengdu and Chongqing becoming increasingly captivating. The New International Land-Sea Trade Corridor now connects with 514 ports in 123 countries and regions, transporting more and more Chongqing products to the world, making the inland city a frontier of China's westward and southward opening-up. 

Orienting toward residents' expectations for a high quality of life, we have constantly made sure that development achievements truly deliver for the people's well-being. By coordinating new urbanization with all-round rural revitalization and balancing high-quality development with high-standard protection, we are shaping a beautiful and harmonious urban-rural landscape while delivering tangible benefits in key sectors to residents. Now, if you stroll through the city, you will notice new improvements along the banks of the Yangtze River and Jialing River. In Chongqing, also known as a "mountain city," over 700 kilometers of footpaths connect the mountains and rivers as well as the city and its residents, while more than 200 pocket parks dot the urban landscape. Each year, over 200,000 college graduates are captivated by this mountain city and choose to stay here. If you go to the countryside in search of nostalgia, you'll find picturesque and harmonious rural areas with a fresh new look. There, the food and agricultural product processing industry has increased the income of rural residents. Local specialties, such as Fuling pickled mustard tubers, Fengjie navel oranges, Tongnan lemons and Wushan crisp plums have become huge hits. As you view Chongqing's scenery, you will witness the result of its efforts to create a beautiful landscape. The water quality of the Chongqing section of the main stream of the Yangtze River has remained excellent for seven consecutive years, and over 325 days of good or excellent air quality have been recorded for four consecutive years. Three years since the 10-year fishing ban was implemented in the Yangtze River Basin, the number of fish species monitored in the river has more than doubled. Chongqing is widely considered as a city with charming scenery, bustling life and warm people. Everyday scenes, including the "spring-bound train" (rail routes passing blooming flowers), the Baijusi Yangtze River Bridge evoking scenes from the movie "Interstellar," and the radiant lights in Hongyadong scenic area, have become must-see attractions for tourists.

We have continuously innovated high-efficiency governance and accelerated our steps toward further modernizing city governance. Digitalization enabled the community to access Chongqing's administration and services. Local people can register for permanent residency for newborn babies, handle social security procedures, and apply for start-ups through online services. In emergencies, such as rockslide-related disasters, information can be sent directly to the city-level command center, and corresponding instructions will be promptly delivered to frontline workers. This has accelerated the building of an all-weather security system, ensuring the city's smooth operation. The local government has also improved its effectiveness and efficiency in governance, continuously enhancing the business environment. Currently, Chongqing hosts over 7,200 foreign-invested business entities and 319 branches of the world's top 500 enterprises, showcasing growing vitality in various business sectors.

Friends from the media, as a Chinese saying goes, "Seeing once is better than hearing a hundred times." We warmly welcome you to visit Chongqing, to experience the unique charm of this beautiful city with its abundant rivers and mountains, as well as its robust vitality in pursuing modernization. You are also welcome to record the city's vibrant efforts in pursuing its new missions, writing a new chapter of development, and telling its stories to spread its voice.

That's my introduction. Next, my colleagues and I would like to answer questions from the journalists.

Shou Xiaoli:

Thank you for your introduction, Mr. Hu. The floor is now open for questions. Please identify the media outlet you represent before asking your question. We can start now.

CCTV:

During his inspection of Chongqing in April, General Secretary Xi Jinping emphasized that the city should try to build itself into a key strategic fulcrum for the development of China's western region in the new era and a comprehensive hub for inland opening up. Could you please elaborate on what Chongqing will focus on to serve the development of the western region and contribute to the overall development of the country? Thank you.

Hu Henghua:

Thank you for your question. During his inspection, General Secretary Xi Jinping entrusted Chongqing with two defined roles, providing strategic guidance for the city's development. These roles are rooted in the western region and are aimed at serving the country's overall growth. The first role, "a key strategic fulcrum for the development of China's western region in the new era," emphasizes well-coordinated environmental conservation, greater openness and high-quality development. This requires Chongqing to play a strong supporting role and set a good example. The other role, "a comprehensive hub for inland opening-up," highlights Chongqing as both a transportation hub and a distribution center for resources such as people, materials, funds, and information. This aims to lead the opening up and development of inland regions. We will focus on these two roles and prioritize the development of six key zones:

First, we will build a pioneer zone for high-quality development in the western region. Last year, Chongqing's GDP exceeded 3 trillion yuan. Based on this achievement, we will strive to reach 4 trillion yuan by 2027, when the city celebrates its 30th anniversary as a municipality directly under the central government. Achieving this target won't be easy. Therefore, we must promote innovation, manufacturing, and services, with advanced manufacturing as our backbone. We will accelerate the development of a modern, productive service industry and build a modernized industrial system. These efforts will help create new growth drivers of new quality productive forces.

Second, we will establish a leading zone for international cooperation in inland opening-up. We will focus on promoting the development of the New International Land-Sea Trade Corridor in the western region and improving the collection, distribution, and transportation system for international logistic corridors. Currently, we are planning to build a hub port industrial park in the western part of Chongqing, bordering the central downtown area. This park will serve as a base for manufacturing of complete sets of advanced equipment , advanced materials, logistics, and modern supply chain services. If these corridors are seen as lines, the hub port industrial park can be viewed as a key linkage point, connecting the New International Land-Sea Trade Corridor, the China-Europe Railway Express, and the Yangtze River waterway. This will enhance the interplay among corridors, economy and trade, and industries.

Third, we will create a pilot zone for comprehensive and in-depth reform. This involves being pioneers in implementing digitization, reforming state-owned assets and enterprises, transforming industrial parks and development zones, and developing the private economy. Our goal is to achieve a series of reform successes unique to Chongqing. For instance, by reforming industrial parks and development zones, we have reduced the number of industrial parks in Chongqing to 50, achieving a decrease in quantity. Moving forward, we will continue to enhance our functions, providing services for residents in the administrative area and supporting legal entities in the development zone. This will ensure that enterprises can handle relevant affairs without leaving the zone.

Fourth, we will build a demonstration zone for modernized governance of a super-large city. As a municipality directly under the central government, Chongqing enjoys the advantage of direct management. We will improve the comprehensive urban governance system and mechanism, develop a smart hub for city operations and governance, accelerate digital governance, and improve urban security capabilities in all respects, striving to gain new experiences in building a people-centered city.

Fifth, we will establish a zone demonstrating urban-rural integration and rural revitalization. Given Chongqing's vast rural areas, we will strengthen the driving role of the main urban area, comprehensively promote new urbanization using districts, counties, and central towns as key carriers, and advance rural revitalization with targeted measures, continuing to improve people's well-being.

Sixth, we will establish a pilot area for implementing the Beautiful China Initiative. As the largest riverside city in the upper reaches of the Yangtze River, Chongqing will be more aware of its special location and shoulder its corresponding responsibilities. We will promote environmental governance such as water, air, soil, waste and plastic management in a coordinated way, take actions for green and low carbon transformation, and consolidate the vital ecological barrier in the upper reaches of the Yangtze River, safeguarding its green waters and the lush mountains on its both sides. 

That's my answer. Thank you.

China News Service:

Recently, Chongqing's "Basket Line" has gone viral online, making it easier for many suburban farmers to travel to the city to sell their vegetables. We have noticed that Chongqing every year rolls out 15 key welfare matters. Could you explain how these major matters are determined and implemented, and what is their current progress? Thank you.

Hu Henghua:

Thank you for your question and your attention to Chongqing. I will invite Executive Vice Mayor Chen Xinwu to answer this question.

Chen Xinwu:

Thank you for your question. The "Basket Line" is what the locals call Line 4 on our subway system. This line is 48.5 kilometers long, connecting Shichuan town in Yubei district to the city center. Every morning, people in the suburbs can carry their baskets and take Line 4 into the city to sell their vegetables. At the same time, in order to facilitate the people to sell vegetables, we have made arrangements regarding security checks and seating on this line as we ll as market planning. This ensures that residents can easily sell their vegetables while also managing the city's appearance. It can be said that the "Basket Line" is a reflection of Chongqing Municipal Government's annual work for people's welfare.

Over the years, the Chongqing Municipal Government has always regarded welfare matters as the most practical and direct work. Each year, we plan 15 key welfare matters. In planning and advancing these projects, we mainly focus on three aspects:

The first part is collecting issues. Each year, the municipal government publicly collects work suggestions for the next year on the government website. At the same time, we have mobilized grassroots communities, various social organizations, and "Party congress delegates, people's congress deputies and political advisors" to solicit suggestions. We collect over 3,000 opinions every year.

The second part is the decision-making process. In the decision-making part for welfare matters, the government always insists on being close to the people, paying attention to their needs, focusing on practical projects and embodying warmth. We have focused on launching some small-scale and effective people's welfare projects, and aim to accomplish a number of "key matters" and "heartwarming good deeds." For example, we regard urban outdoor workers being able to rest as a matter of people's welfare. So, we have built 1,400 "workers' rest areas" at labor union activity homes, community service centers, banks, supermarkets and sanitation facilities. These areas provide outdoor workers a place to rest, drink water, eat and charge their phones, if needed.

The third part is the implementation stage. Although urban welfare matters may seem small, their implementation can be quite complicated. We have innovated our working methods. For example, in order to solve the problem of building small and micro parking lots, we have been boldly innovative by using idle land, fragmented land and spaces under bridges for public bidding. In less than two years, we have built 1,200 small and micro parking lots, adding 90,000 parking spaces and effectively alleviating the parking difficulties in the urban area.

Next, we will continue to deal with real problems and handle welfare matters well, so as to provide people a greater sense of accomplishment and happiness. Thank you!

Nikkei:

As the city with the earliest launch of China-Europe freight trains, what achievements has Chongqing made in the last 13 years? The current international situation is becoming increasingly complex, especially with the ongoing Red Sea crisis. With that, the role of the China-Europe freight trains as a major logistics artery is becoming more obvious. Will the number of trips for the Chongqing China-Europe freight trains increase in the future? What are the trends in the types of goods being transported? How does it promote Chongqing's industrial development? Thank you!

Hu Henghua:

Thank you for your concern about the China-Europe freight trains. I will invite Vice Mayor Zheng Xiangdong to answer this question.

Zheng Xiangdong:

Okay, thanks. With the joint efforts of countries and regions along the route, the China-Europe freight trains have explored a path of consensus building, win-win cooperation and vitality. It has now become a widely welcomed international public product. As the first city to launch China-Europe freight trains, Chongqing has dispatched nearly 16,000 trains, shipped 1.3 million TEUs (twenty-foot equivalent unit) of goods and transported goods worth over 530 billion yuan.

We believe that although international trade and logistics are facing much uncertainty, the number of China-Europe freight trains and the volume of goods delivered will certainly continue to increase in the future. This is because continuous efforts have been made in terms of "hard connectivity" to improve the transportation network. At present, China-Europe freight trains travel on a total of 51 routes, reaching 113 cities in Europe and Asia. These routes interconnect with the New International Land-Sea Trade Corridor and the Yangtze River golden waterway, enabling almost full coverage across Asia and Europe. In terms of "soft connectivity," service efficiency related to transportation routes continues to improve. We have thoroughly promoted special services such as streamlined customs clearance, comprehensive insurance and cross-border finance, creatively explored land trade rules and launched a number of pilot programs regarding rail waybill related financial services, improving trade facilitation. On the supply side, we have enhanced logistics security. Recently, international maritime routes have encountered difficulties, while the volume and value of goods delivered by China-Europe freight trains from Chongqing to Europe have increased by 217% and 190%, respectively, showing the resilience and potential of land transportation in international trade. On the demand side, all parties have grown more eager for cooperation regarding the transportation routes. As efficient and stable public goods, China-Europe freight trains offer one of best solutions to international logistics, transforming the pattern of opening-up from mainly focusing on maritime transportation to coordinating between modes of land transportation and sea shipping.  

We believe that China-Europe freight trains will continue to play a greater role in Chongqing's industrial development. As China's door is opening ever wider and our circle of friends continues to expand, trade cooperation with countries along the routes will become closer, and more high-quality international commodities will enter the domestic market. The increasingly mature transportation services, more efficient interconnection between European, Central Asian and ASEAN markets, and the accelerated integration of cross-border funds, technologies and talent, mean that Chongqing will become more deeply involved in the global industrial division. The industrial ecosystem is improving, the integration of industrial and supply chains has picked up pace in regions along the routes, and as the result, the business vitality and growth potential will be further invigorated. For instance, the electronic information industry is one of pillars of Chongqing's economy. Since the launch of the China-Europe freight trains, more than 100,000 TEUs of related products worth over 180 billion yuan have been transported. 

We have reason to believe that in the future China-Europe freight trains will transport a greater quantity and wider variety of goods, with trade entities and business modes continuing to diversify. Thank you. 

National Business Daily:

We are all aware that today, June 5, is World Environment Day. What efforts has Chongqing made to protect the eco-environment in the upper reaches of the Yangtze River, as the largest riverfront city in the region? And what progress has been made? Thank you.

Hu Henghua:

Thank you for your important questions. I would like to invite Mr. Chen to answer.

Chen Xinwu:

Thank you for your questions. Today is World Environment Day, and China's major thematic event is being hosted in Guangxi. Next year the baton will be passed to Chongqing. Mr. Hu just mentioned that Chongqing is the largest riverfront city in the upper reaches of the Yangtze River, which runs 691 kilometers from west to east through the city. 85% of the Three Gorges Reservoir region is located in Chongqing. It is Chongqing's major political duty to protect the ecological environment and strengthen the ecological shield in the upper reaches of the Yangtze River. We strive to ensure well-coordinated environmental protection, prevent overdevelopment, and advance the integrated management of water, air, soil, waste, plastics, mountains, shores, and urban and rural areas. With all these efforts, the quality of the city's environment has been rising. Today, the landscape of Chongqing features lucid waters and lush mountains, blue skies and green fields.  

We have ensured the comprehensive management of water, air and soil, strictly implemented the river chief system, enforced a 10-year fishing ban on the Yangtze River, enhanced management of 4,012 sewage outfalls into rivers, set up a big data application system for the management of the water environment, and enabled smart monitoring of 120 rivers in the city. The efficiency in locating water environment issues, tracing their sources, and handling them has increased by over 80%. We have promoted the green transformation of enterprises, and advanced green and smart upgrading of urban transportation, with no severe air pollution for six consecutive years. We have prevented and controlled soil contamination at the source, realizing safe land utilization in all major construction projects. 

We insist on coordinating waste and plastic management. We have carried out a pilot project to construct a "zero-waste city," achieving a comprehensive utilization rate of 76% for general solid waste. Notably, in terms of garbage treatment, we have transitioned from landfill to waste-to-power generation. Last year, Chongqing's waste-generated electricity exceeded 3 billion kilowatt-hours, meeting the annual household electricity needs of more than 3.7 million residents. This is equivalent to over one-third of the electricity needs of the city's central area being met through waste-to-energy power generation. At the same time, we have promoted the reduction of "white pollution," promoted bamboo products to replace plastic ones, reduced secondary packaging for e-commerce express deliveries, and decreased the volume of single-use plastic products by more than half in the past two years, with 99% of agricultural plastic films now recyclable.

We insist on managing ecological conservation of mountains and rivers in a holistic manner. We have launched management programs for mountains such as Jinyun Mountain and Tongluo Mountain, creating green mountains and forest belts along the riversides. We have planted 15.22 million mu (1 million hectares) of forests and restored 92,000 mu of mined land. For example, the Tongluo Mountain mining area, once the largest limestone mining area in the downtown region with 41 abandoned mines, has undergone ecological restoration and has been transformed into a downtown ecological park. It is a new must-see destination in the city. At the same time, we have also strengthened the conservation of the Yangtze River, managing 109 kilometers of riverbanks and creating a 400-kilometer stretch of river with clear waters and green banks.

We insist on coordinating urban and rural governance. Based on Chongqing's unique landscape, where rivers, gorges and mountains intertwine, we are creating an ecological city with a rich mountainous charm. In conjunction with promoting comprehensive rural revitalization, we are building 100 beautiful and harmonious villages. At present, 164 villages have been selected as traditional Chinese villages.

Next, we will make greater efforts to solve several prominent ecological and environmental problems, create landmark achievements recognized by the public, and take concrete actions to build a strong ecological shield in the upper reaches of the Yangtze River in preparation for the national-level World Environment Day event to be held in Chongqing next year. Thank you.

Chongqing Daily:

Chongqing is a major manufacturing hub in China. In recent years, cars and laptops made in Chongqing have been sold domestically and worldwide. How can Chongqing develop and expand its modern industrial system based on its distinctive and competitive industries? Thank you!

Hu Henghua:

Thank you for your question. Mr. Jiang Duntao, who oversees the industrial sector, will answer this question.

Jiang Duntao:

Okay. Chongqing is an important industrial city in our country, and just like the journalist said, it is a manufacturing powerhouse. It should be noted that Chongqing has a solid manufacturing foundation and abundant scientific and educational talent resources. In building a modern industrial system, we will focus on two key areas: "taking advanced manufacturing as the backbone" and "taking scientific and technological innovation as the guide."

In terms of developing advanced manufacturing, we will accelerate the construction of the "33618" modern manufacturing cluster system. We will focus on building three leading industrial clusters: intelligent connected new energy vehicles, next-generation electronic information manufacturing, and advanced materials. We will upgrade and build three pillar industrial clusters: intelligent equipment and intelligent manufacturing, food and agricultural product processing, and software information services. Additionally, we will innovate and build six distinctive and competitive industrial clusters, including new-type displays, lightweight alloy materials, new energy and the new energy storage industry. Furthermore, we will cultivate and expand 18 "new star" industrial clusters such as satellite internet. Today is the first anniversary of Chongqing's proposal to build the "33618" modern manufacturing cluster system. Over the past year, we have boosted the industry in accordance with this thinking and achieved positive results. For example, Chongqing-made cars have been selling well both domestically and internationally. As Mr. Hu mentioned earlier, in 2023, we manufactured over 2.3 million vehicles, producing more than 500,000 new energy vehicles. I think these achievements epitomize Chongqing's industrial transformation and upgrading.

Next, we will continue to promote the high-quality and clustered development of the manufacturing sector. Specifically, we will support enterprises in industries with comparative advantages, such as automobiles and electronics, to increase the launch of new products and move towards the high-end. For industries with development potential, such as integrated circuits and new-type displays, we will promote technology iteration and upgrades, create an industrial ecosystem, and continuously expand the scale of the industry. Additionally, we will select and cultivate relevant enterprises and R&D institutions with new business forms and models, strengthen industries' generation and cultivation, leverage market support through policy support, and create a group of hard and core technology companies and cutting-edge industries.

To strengthen innovation leadership, we will continue to promote the deep integration of technological and industrial innovation. On the one hand, we will fully integrate advantageous resources such as industrial technology research institutes, industrial funds, and industrial parks to facilitate the transition of more scientific research results from the laboratory to the production line. On the other hand, we will enhance the main role of enterprises in innovation and make more breakthroughs in bottleneck technologies. For example, in recent years, smartphone cover glass made in Chongqing, known for its superior drop resistance, has been used in domestic high-end smartphones, including those made by Huawei. This development has successfully filled a domestic gap in this field and brought broad market opportunities to enterprises. Currently, we are vigorously cultivating various innovative market entities, aiming to double the number of high-tech and technology-based enterprises to 12,000 and 80,000, respectively, by 2027. We will work to continuously stimulate the innovative vitality of the whole society.

Meanwhile, we will make every effort to promote the deep integration of modern productive services and advanced manufacturing, develop new quality productive forces tailored to local conditions, and create a market-oriented, law-based, and international top-tier business environment. We will fully leverage Chongqing's advantages, actively integrate into and serve major national strategies, and strive to attract more significant projects and high-quality enterprises to establish a presence in Chongqing, bringing fresh impetus to high-quality industrial development. Thank you.

Xinhua News Agency:

Chongqing is unique as the only municipality directly under the central government in China's central and western regions. It is also the largest city in terms of administrative area and population. Could you please tell us what measures Chongqing has taken to explore the modern governance of a megacity and in which areas it will continue to focus its efforts? Thank you!

Hu Henghua:

Thank you for your questions. Some say that Chongqing is "a city with 1,000 faces" and I think that's precisely where its charm lies. Chongqing is a city nestled among mountains and rivers, with the Yangtze and Jialing rivers flowing through it. The Jinyun, Zhongliang, Tongluo, and Mingyue Mountains divide the city into three major valleys, creating a cityscape that blends seamlessly with mountains and rivers. Chongqing is a megacity, spanning 82,400 square kilometers, with a permanent population of 32 million. The population of its central urban area alone exceeds 10 million. Chongqing is also a hub city where multiple functions converge and various resources and elements are distributed, adding to the complexity of urban governance.

The core of a city is its people, encapsulated by these words: "clothing, food, housing, transportation, birth, aging, illness, death, and enjoying peace and contentment in work and life." We adhere to the concept of a people-oriented city, striving to ensure that urban development always considers people and that urban governance serves the people. For example, in urban transportation, we prioritize solving the difficulties people face in commuting. The terrain and topography of Chongqing's central urban area are so complex that residents have to navigate slopes and obstacles. That's quite inconvenient. We vigorously develop public transportation, with priority given to buses and pedestrians. Over the years, we have built 13 urban rail lines totaling 538 kilometers, tailored 592 shuttle bus routes, 58 alley bus routes, and 23 bus routes for older people. Many residents can take the subway or catch a bus at their doorstep. Currently, Chongqing sees over 7 million passenger trips made daily on its public transportation network. Another example is urban renewal, where we have proposed a "four increases, three decreases" management approach. The "four increases" involve expanding public spaces, enhancing transportation facilities, adding municipal facilities, and increasing public green spaces; the "three decreases" involve reducing population density, building height, and development intensity. In recent years, we have renovated over 7,200 old residential communities, improved over 8,900 community service facilities for older people and children, and installed over 5,500 additional elevators. Several old neighborhoods and communities have been revitalized, with renovation projects like Minzhu Village and Beicangli successfully gaining widespread recognition and becoming popular spots for residents and tourists.

Going forward, we will actively explore new approaches to modern governance of a megacity. We will establish and improve a comprehensive and integrated urban governance system and mechanism, breaking down departmental barriers and strengthening coordinated, efficient governance. We will accelerate the construction of a smart city and enhance the practical capabilities of digital urban operation and governance centers. Additionally, we will strengthen the foundational role of subdistricts and communities, fully mobilizing citizens' enthusiasm for participating in urban governance and creating a favorable atmosphere where everyone participates, contributes, and benefits. We aim to build a livable, resilient, and smart international metropolis. Thank you!

Cover News:

More and more government services in Chongqing, such as employment and social security, can now be processed online. We understand that Chongqing is actively promoting the development of Digital Chongqing and even held a conference on this initiative last April. Could you please provide an update on the current progress of this initiative? What conveniences has it brought to residents? Thank you.

Hu Henghua:

Thank you for your questions. Mr. Jiang will address them.

Jiang Duntao:

Thank you for your interest in the construction of Digital Chongqing. Since the conference last April, the initiative has advanced smoothly and rapidly, with significant progress across various aspects of city governance. For instance, by creating digital applications through our "one-stop service," we have transformed tasks that previously required multiple visits and approvals into processes that can now be completed with "one login, one-time handling." Currently, over 80 thematic service packages are available online, covering more than 90% of high-frequency matters related to public and enterprise services, such as newborn registrations and business startups. This has significantly improved the efficiency of government services.

Behind these achievements is a breakthrough from "zero" to "one" in the construction of Digital Chongqing. I would like to summarize this progress with three key terms.

The first key term is "integration." We have developed an integrated and intelligent public data platform based on "centralized municipal-level construction; graded management at city, district and county levels; and three-level interconnection between city, district, and sub-district." For example, in terms of data, our platform connects with the national government's big data platform at the top level and extends down to the sub-district level, encompassing 126 municipal-level units and departments. This platform has achieved a 90% satisfaction rate for residents' data-sharing demands, effectively addressing the challenges of cross-departmental data collection and sharing. Additionally, on the application side, we have created "Yukuaizheng" and "Yukuaiban," which serve as the main entry points for government personnel and businesses or public users, respectively. These platforms integrate various government applications, effectively preventing redundant systems.

The second key term is "one-stop service." Through digital integration and reform, we have consolidated "individual tasks" from multiple departments into "one-stop service" for enterprises and residents. We have established six major digital application systems: digital Party building, digital government services, digital economy, digital society, digital culture, and digital rule of law. Leveraging digital concepts and methods, we have continually optimized work processes, restructured systems, and enhanced relevant capabilities. The previously mentioned "one-stop service" was specifically developed under our digital government service application system.

The third key term is "unified coordination." In exploring modern governance for a megacity, we have established a digital city operation and governance center that integrates the municipal, district, and sub-district levels. This system is centrally developed at the municipal level, with physical centers at the city, district, and sub-district levels. This enables real-time monitoring of key urban indicators and addresses related issues on a tiered basis. This creates a vertically integrated and horizontally coordinated "unified coordination" work model. For example, in October last year, Wushan county in Chongqing detected a potential landslide. Upon identifying the risk, our three-level governance centers at the municipal, district, and sub-district levels issued early warnings and coordinated responses, successfully evacuating 103 households and 196 people in a timely manner. This effectively managed an 8.5 million cubic meters landslide without any casualties.

The construction of Digital Chongqing is an ongoing and iterative process. Moving forward, we will systematically enhance the practical capabilities of the digital city operation and governance center, as well as the collaborative performance of various departments at all levels. Simultaneously, we will plan and develop more practical and user-friendly digital applications, continually exploring new approaches to modern governance for megacities.

Thank you!

Zhinews of Shenzhen Satellite TV:

It's well known that the New International Land-Sea Trade Corridor in the western region is a new international land and sea trade route jointly developed by western Chinese provinces and ASEAN countries. As the operational center, what progress has Chongqing made in constructing the corridor, and how will the city further enhance its capacity for opening-up to the rest of the world in the next phase? Thank you.

Hu Henghua:

Thank you for your questions. Mr. Zheng will answer them.

Zheng Xiangdong:

Thank you for your attention to the New International Land-Sea Trade Corridor. As its initiator, contributor, and builder, the Chongqing government has actively played its role as the logistics and operations center. We have proactively collaborated with relevant ministries and departments, the "13+2" domestic provinces, autonomous regions, and cities along the route, and ASEAN countries to promote the high-quality development of the corridor. We have made the following progress:

We have promoted infrastructure construction, accelerating the formation of a transportation network for the corridor, crossing both mountains and sea. We regularly operate rail-sea freight trains, international railway trains, and trans-border highway shuttle buses, while expanding new routes for China-Laos-Thailand international trains and China-Myanmar road-rail combined transportaion. The transportation network currently links 514 ports in 123 countries and regions.

We have advanced industrial and trade cooperation to promote high-quality economic development in the corridor. With the idea of "the corridor creating logistics, logistics serving economy and trade, economy and trade driving industries, and industries aggregating elements," we have planned and constructed the Chongqing International Logistics Hub Park from a high starting point, focusing on developing industries such as complete sets of mechanized equipment, advanced materials, modern logistics. As of April this year, the first batch of major projects, with a total investment of 40 billion yuan, has been signed and construction has started.

We have reduced logistics costs while improving efficiency to make operations in the corridor more convenient. We have worked holistically on reform, innovation, and digital empowerment. In 2023, the comprehensive logistics costs in the corridor decreased by 3.5% year on year. Connectivity and data sharing between customs and railway systems have been greatly promoted through digital corridor construction, providing highly efficient services for market entities.

We have boosted international communication and cooperation to expand the corridor's network of partners. We have synergized the construction of the corridor with the China-Singapore bilateral cooperation mechanism and the Lancang-Mekong River cooperation platform. We have also regularly held international cooperation forums and established a tourism promotion alliance to encourage regions along the corridor to open up.

Looking forward, we will focus on the following three aspects to improve the level of opening-up. First, we will continuously optimize the transportation network, accelerate infrastructure construction, upgrade the collection and distribution systems for international logistics, and maintain the daily shipping route between Qinzhou and Singapore. Second, we will constantly improve cooperation platforms, deepen cross-border cooperation in supply and industrial chains, and establish a west- and south-oriented international trade center. Third, we will consistently emphasize reform and innovation, explore new land-sea trade rules, expand the application scale of "one bill of lading" services for the multimodal transportation, and iteratively upgrade the digital corridor construction. By doing so, we expect to achieve more remarkable outcomes for the corridor. Thank you.

ThePaper.cn:

As one of the country's first six pilot cities for business environment innovation, what measures has Chongqing taken to promote both an efficient market and a well-functioning government to better serve local companies' investment, entrepreneurship, and development? Thank you.

Hu Henghua:

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

Chen Xinwu:

Thank you. As one of the first pilot cities for business environment innovation, Chongqing prioritizes enterprises' satisfaction. It adheres to creating a market-oriented, law-based, and international business environment.

We have continued to improve government services. As Mr. Jiang mentioned earlier, during the construction of Digital Chongqing, we set up a digital government service platform to provide various online services for all market entities in the city. Currently, over 80% of the more than 2,800 government service items can be handled online. Additionally, more than 8,000 government specialists can provide personalized, one-on-one services to help thousands of enterprises solve their difficulties. To ease market access, we abolished 82 types of certificates related to business operation items, including the road transport operating license and the important industrial products production permit. Enterprises are now allowed to submit written commitments for such applications.

We have adhered to using the law to protect enterprises' development. Law enforcement and judicial supervision have been strengthened to protect companies' rights and interests. We set up the first bankruptcy court in western China to handle corporate bankruptcy and compulsory liquidation cases involving inferior enterprises. So far, idle assets with a total value of 118.7 billion yuan have been efficiently utilized. We also established the Chengdu-Chongqing financial court, the first court in China for cross-provincial jurisdiction. Since its establishment, more than 12,000 cases with a target value of over 40.2 billion yuan have been handled by the court.

In addition, we have aligned with international standards to enhance our services. As Mr. Hu mentioned earlier, Chongqing is a mega-city and has been open to foreign trade since early times. Currently, Chongqing ranks fourth nationwide in terms of the number of foreign consulates and institutions in the city. Chongqing has established sister city relationships with 56 cities and hosts 23 international schools. We are actively working to build the Center for International Exchanges in Central and Western China. Every year, we organize a number of market-based and professional international fairs, such as the Smart China Expo and the Western China International Fair for Investment and Trade, which are highly popular among enterprises at home and abroad. We have established the China-ASEAN Research Center at the Southwest University of Political Science and Law, providing services for business activities between ASEAN countries and domestic enterprises. We are now constructing four laboratories in Jinfeng, Jialingjiang, Guanyuehu, and Guangyanghu, which will support collaborative innovation among enterprises. Chongqing has opened 112 international air routes, including the new western land-sea corridor mentioned earlier by Mr. Zheng. As the hub for the logistics corridor and operational management, Chongqing has pioneered the "single document" system for rail-sea intermodal transport, allowing enterprises to handle shipments with a single contract and one-time payment, thereby streamlining processes and reducing costs. This innovation has made it more convenient for goods to be transported from Chongqing to Southeast Asia and Europe.

In summary, we will remain committed to market-oriented and law-based international standards, providing sincere and excellent services to enterprises in order to ensure they can invest, start businesses, and develop with confidence in Chongqing.

Thank you.

Shou Xiaoli:

Last question, please.

21st Century Business Herald:

We have noticed that the annual "first meeting of the year" in Chongqing over the past two years has consistently prioritized the advancement of the Chengdu-Chongqing economic circle. Could you please elaborate on the accomplishments Chongqing has made in pushing forward the construction of the Chengdu-Chongqing economic circle over the years? What are the future steps? Thank you.

Hu Henghua:

Thank you for your interest in Chongqing. For two consecutive years, Chongqing's "first meeting of the year" has focused on the construction of the Chengdu-Chongqing economic circle. The goal is to mobilize the entire city to advance this strategic initiative effectively. Over the years, with an emphasis on "unified and high-quality development," we have carried out 10 major actions, including the planning and construction of a modern infrastructure network and initiatives to benefit people and increase the quality of life for our citizens. We aim to foster more significant growth poles and new engines that drive high-quality development nationwide. Over the past four years, the combined GDP of Sichuan and Chongqing has increased by 2 trillion yuan, reaching 9 trillion yuan last year. We have made remarkable progress in the construction of the Chengdu-Chongqing economic circle. Let me share a few examples with you.

Industrial collaboration has intensified in recent years. There is strong complementarity and industrial linkage between Sichuan and Chongqing in the automobile manufacturing sector. For example, Volvos made in Chengdu are equipped with auto parts and components from Chongqing, while Changan Deepal cars produced in Chongqing rely on batteries from Yibin, Sichuan. This cooperative pattern extends beyond the automobile industry. Currently, Sichuan is Chongqing's largest market and second-largest supply source. Last year, trade volume between the two regions exceeded 870 billion yuan.

Transportation infrastructure has steadily improved over the years. A "one-hour transportation circle" now exists in the Chengdu-Chongqing region. It takes only 62 minutes to travel from Chongqing's Shapingba Station to Chengdu East Station by high-speed Fuxing bullet train. This allows residents to watch pandas in Chengdu in the afternoon and enjoy hotpot in Chongqing that evening. When the Chengdu–Chongqing Central Line high-speed railway opens in 2027, commuting time will be reduced to 50 minutes. In addition to high-speed rail, 22 inter-provincial bus routes between the cities and 20 inter-provincial highways are under construction or completed. Currently, over 1 million trips occur daily between Chengdu and Chongqing.

Inter-provincial government services have become increasingly convenient for residents in Chongqing and Sichuan. The two regions have launched three batches of 311 cross-provincial government services, with over 18 million cases processed to date. Now, transferring pension insurance relations between the two regions no longer requires multiple trips. Residents can apply with one click on their mobile phones and handle everything online. The results of 112 types of medical examinations and tests from 413 hospitals in both areas are mutually recognized. Business entities can apply for business licenses under the same standards, with the respective authorities recognizing and issuing licenses accordingly, all completed within one day. Thanks to these efforts, we have provided greater convenience for businesses and the public in the two regions.

Sichuan and Chongqing are like family, and the construction of the Chengdu-Chongqing economic circle brings them even closer. We will work together with Sichuan, adhering to an integrated approach and unified planning. We will focus on promoting coordinated development between Chengdu and Chongqing, in order to create a powerful economic engine that drives regional prosperity. We will move faster to build an important economic center and a nationally influential sci-tech innovation center, jointly establish a financial center in the western region, and develop the Bashu cultural and tourism corridor. We strive to showcase the remarkable achievements of Chengdu and Chongqing in western China in the new era. Thank you.

Shou Xiaoli:

Thank you, Mr. Hu, and thank you to all the speakers and journalists for your participation. Today's press conference is hereby concluded. Goodbye.

Translated and edited by Xu Xiaoxuan, Zhou Jing, Yan Xiaoqing, Wang Yanfang, Yan Bin, Zhang Rui, Qin Qi, Lin Liyao, Cui Can, Huang Shan, Ma Yujia, Yuan Fang, Liu Sitong, Zhang Junmian, Wang Wei, Li Huiru, Rochelle Beiersdorfer, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers:

Mr. Wang Yubo, deputy secretary of the Communist Party of China (CPC) Yunnan Provincial Committee and governor of Yunnan province

Mr. Wang Xiangang, deputy secretary of the Leading Party Members Group of the Yunnan Provincial Government

Mr. Liu Yong, vice governor of Yunnan province

Chairperson:

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

Date:

May 31, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 25th press conference in the series "Promoting High-Quality Development." Today, we are pleased to have invited Mr. Wang Yubo, deputy secretary of the Communist Party of China (CPC) Yunnan Provincial Committee and governor of Yunnan province, who will brief you on taking solid steps to promote high-quality development in Yunnan province, and then take your questions. Also present today are Mr. Wang Xiangang, deputy secretary of the Leading Party Members Group of the Yunnan Provincial Government; and Mr. Liu Yong, vice governor of Yunnan province.

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

Wang Yubo:

Ladies and gentlemen, good morning. I'm delighted to be here to introduce high-quality development in Yunnan to you all. Entrusted by Wang Ning, secretary of the CPC Yunnan Provincial Committee, I would like to express my heartfelt gratitude on behalf of the CPC Yunnan Provincial Committee, the People's Government of Yunnan Province, and people of all ethnic groups in the province for your long-term attention, assistance and support for Yunnan.

When speaking of Yunnan, people often think of its year-round spring climate, local song and dance, want to visit the location of the hit TV show "Meet Yourself" and experience the unique "Yunnan lifestyle." I would like to start by highlighting three keywords. First, "beautiful." Since ancient times, Yunnan has been given such poetic names as "Colorful Yunnan" and "South of the Colorful Clouds." It is a representation of China's beauty and a microcosm of the Chinese nation united as a family. Second, "advancing." Since the 18th CPC National Congress, Yunnan's total economy has risen from 1.1 trillion yuan in 2012 to 3 trillion yuan in 2023, with the quality of development continuously improving. Third, "open." As a major passageway in China connecting South Asia, Southeast Asia and the Indian Ocean region, we have constantly been opening up, serving as a bridge and link between China and the rest of the world.

General Secretary Xi Jinping cares deeply about the development of Yunnan and the people of all ethnic groups there. He has called on Yunnan to forge a path of leapfrog development, striving to become an example of ethnic unity and progress, a pacesetter in eco-conservation and a new pivot in China's opening up facing South and Southeast Asia. We have thoroughly implemented the guiding principles from General Secretary Xi Jinping's important speech during his inspections of Yunnan. We have formulated and implemented the "3815" strategic development goals, which involves a 3-year plan to upgrade economic performance, 8-year plan to achieve high-quality growth and 15-year plan to realize leapfrog development. We have continuously strengthened the resource economy, park economy and port economy, and are promoting Chinese modernization in Yunnan through high-quality leapfrog development.

We have taken on the significant responsibility of ecological protection, and the bedrock of green development is becoming increasingly prominent. Blue sky, white clouds, fresh air, green mountains and clean rivers are the most distinctive attributes of Yunnan. For the sake of ecological protection, we are willing to forego immediate benefits, growth rate and GDP. Our forest area ranks second in the country, and the air quality in urban areas has ranked among the best in the country for seven consecutive years. In 2023, the average PM2.5 concentration was 21.8 micrograms per cubic meter, nearly 30% lower than the national average. Ottelia acuminata, an indicator of water quality, blooms in Dianchi Lake and Erhai Lake, and the water quality of Fuxian Lake and Lugu Lake continues to be rated "Class I." The terms "animal kingdom," "plant kingdom," "world garden" and "species gene bank" are the most accurate descriptions of Yunnan. We have comprehensively strengthened biodiversity protection, and the number of higher plants, vertebrates and macro fungi each account for more than 50% of the country's total, making Yunnan one of the 36 global biodiversity hotspots. Ecological priority and green development are Yunnan's most important duties and missions. We reject earnings from pollution and refuse polluting projects, thus promoting the comprehensive green transformation of socio-economic development.

We have strived to develop distinctive and competitive local industries, making steadier progress in industrial transformation and upgrades. Adhering to the general principle of progressing forward without looking back as long as what we are doing agrees with the new development philosophy, and firmly avoiding any actions that don't agree with this philosophy, we have placed high-quality development on the top of our agenda and have accelerated the construction of a modernized industrial system that fits Yunnan's reality. The province is devoted to developing itself into China's major clean energy production center. In 2023, Yunnan's total installed generating capacity exceeded 130 million kilowatts, with installed capacity of green energy accounting for nearly 90%, a proportion that leads the country. Over the past three plus decades, more than 1.5 trillion kilowatt-hours of power were sent from Yunnan to eastern regions including Guangdong, Shanghai, Guangxi and Zhejiang through the West-to-East Electricity Transmission Project. The amount is ranked number one in the country and has led to the reduction of more than 1.2 billion metric tons of carbon dioxide emissions in eastern regions. The province has devoted itself to building a national strategic non-ferrous metal industrial base. Yunnan's proportion is relatively high in the country's total output value when it comes to new materials of precious metals, as well as in the production capacity of green aluminum and photovoltaic monocrystalline silicon and shipments of new energy battery anode material. The province has devoted itself to establishing a modern eco-agriculture base with plateau characteristics. Our planting scales and yields for tea, flowers, nuts, coffee and Chinese medicinal herbs are the largest in the country. The province is devoted to turning itself into a top tourism brand as a global destination. Both the number of tourists and the tourism revenue in Yunnan led the country in 2023.

We have expanded both domestic and global openness, boosting Yunnan's role in driving the development of surrounding areas. Focusing on building Yunnan into an axle, we have continued to leverage the role of China-Laos Railway as a golden channel. We have also innovated and operated series of international freight trains connecting the Yangtze River Delta to the east, Europe to the north and countries of the Association of Southeast Asian Nations (ASEAN) to the south. These routes cover 31 provinces and equivalent administrative units in China, as well as 12 countries participating in the Belt and Road Initiative (BRI). We have innovatively promoted the trusteeship transfer of Mohan town between Kunming city and Xishuangbanna Dai autonomous prefecture, so as to jointly build an international port city. We have also coordinated the development of 28 ports, pilot free trade zones and industrial parks in border areas to effectively embrace the transfer of industries from home and abroad.

We have spared no efforts to secure and improve people's well-being, so that people of various ethnic groups now enjoy a better life day by day. After we shook off poverty, we have concentrated on the central task to increase people's incomes. This year, we aim to eliminate the phenomenon of households with per capita net income of less than 10,000 yuan. These families, who have the ability to work, have already been lifted out of poverty and are monitored for preventing them from falling back into poverty. Every year, around 74% of Yunnan's government expenditures have gone toward ensuring people's well-being, solving pressing difficulties and problems that concern them the most and better satisfying their demands for employment, education, medical services and elderly care. In addition, all villages along the borderlines have completed the construction of modernized and happy border villages.  

Yunnan in real life is more splendid than the one in my oral introduction. We welcome all our media friends to take a walk and have a look in this province.

Thank you.

Xing Huina:

Thank you for your introduction, Mr. Wang. Now the floor is open for questions. Please identify your media outlet before raising your questions.

China Daily:

Serving as an ecological security shield in southwest China, Yunnan has made many efforts in recent years with ecological conservation. I have noticed that Yunnan proposed to launch pilot zones as part of the Beautiful China Initiative. What specific measures will you take to achieve this goal? Thank you.

Wang Yubo:

Thank you. I will answer this question. Good ecology is a precious treasure for Yunnan and the country, which should be protected from generation to generation. To protect good ecology is to improve Yunnan people's well-being, sustain the momentum of high-quality development and construct an ecological security shield for promoting the Beautiful China initiative. We take ecological conservation work as a litmus test of the government's stance, quality of work, capacity and determination. We must protect the ecology as we protect our eyes, and treasure it as we treasure our lives. We will spare no efforts to protect each mountain, forest, lake, river and fertile field in Yunnan, so as to become the pacesetter of China's ecological conservation.

Let's start with the air in Yunnan. Blue skies, white clouds and fresh air are typical of Yunnan. I believe that those of you who have been to Yunnan have deep impressions about this. The percentage of days with air quality rated "excellent" and "good" in the province has been stable at around 98%. One-third of its counties (cities, districts) have been awarded of "China's Natural Oxygen Bar," ranking first across China in number. We will take further actions to continuously improve air quality, strengthen source management and coordinate the control of multiple pollutants, so that we can experience more clear blue skies in Yunnan.

Next is the water in Yunnan. Situated in the upstream of major rivers like the Yangtze River, Pearl River and Lancang River, Yunnan scores a remarkable 100% with all its outbound rivers rated "excellent" and "good" for water quality. Living up to its promise as a "source of clear water," Yunnan contributes over 100 billion cubic meters of high-quality water annually to the Yangtze and Pearl rivers. Renowned both domestically and internationally, Yunnan's picturesque lakes, including Dianchi Lake, Erhai Lake and Fuxian Lake, feature clear water, lush shores and beautiful scenery. These lakes are transforming into grand ecological havens, vast wetlands and scenic wonders. With a holistic approach to manage water resources, water ecology and water environment, we will precisely address wastewater, garbage and agricultural nonpoint source pollution. We are following the basic requirement that water quality must improve and not worsen, so that we can make the rivers and lakes in Yunnan cleaner and more full of life.

Next, I'd like to speak about Yunnan's mountains. Yunnan boasts stunning mountains that cover 94% of its land. Each peak has its own story to tell. The towering Meili Snow Mountains pierce the clouds, while the Gaoligong Mountains are rich in biodiversity. The Wumeng Mountains overwhelm with their grandeur, and the Ailao Mountains hold a mysterious beauty. These mountains are more than just scenic landscapes; they are invaluable assets. We will comprehensively strengthen the systematic protection of ecosystems, natural relics, natural landscapes and biodiversity, carry out the "Green Yunnan" campaign, and effectively prevent forest fires and ecological damage, so that we can make Yunnan's mountains greener and lusher.

Finally, I'd like to speak about Yunnan's soil resources. There are 16 types of soil in Yunnan, accounting for one-quarter of those found in the country. The Honghe Hani Rice Terraces in Yuanyang county are "carved" into the earth, while the red soil of Dongchuan is praised as a "palette." We will expand the scope of our efforts to improve soil quality, comprehensively strengthen the prevention and control of soil pollution at the source, implement strict measures to protect arable land, and maintain soil fertility in Yunnan. By doing so, we are safeguarding food security as well as people's abilities to eat well and without worry.

Thank you.

Southern Metropolis Daily:

Over the past several years, localities across the country have doubled their efforts to optimize the business environment and serve business entities. What measures has Yunnan province taken in this regard? Thank you.

Wang Yubo:

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

Wang Xiangang:

In recent years, Yunnan has been advocating three principles. First, the best time for development is the present; second, the best place for development is under our feet; and third, the best environment for development is based on yourself. We have unswervingly promoted marketization, industrialization, rule of law, ecology-oriented growth and digitalization in line with the above three principles. We have formulated and implemented a three-year action plan to foster a first-class business environment and a plan for doubling business entities, achieving remarkable results. The brand of "efficiency, service and integrity" has been enhanced, and the satisfaction of business entities has continued to increase.

Specifically, we have mainly focused on the following aspects:

First, we have worked hard to increase efficiency in quickly handling business affairs. By streamlining materials, simplifying processes and optimizing services, most enterprises can complete registrations within an hour, or half a day at most. The approval time for projects has been greatly shortened, and 98% of these matters can be handled directly online.

Second, we have worked hard to offer warm and thoughtful services. A key point here is that we have established a normalized communication mechanism between government and enterprises, with "assistance attendants" stationed in enterprises to accurately meet their needs. For example, in response to the financing difficulties facing enterprises, we developed and built a Yunnan financing credit service platform. More than 200 financial institutions have been introduced to the platform, providing one-stop financing services to more than 560,000 companies. Over the past year, a total of more than 130 billion yuan in credit has been granted. This work has been recognized by the State Council and has been promoted nationwide.

Third, we have made every effort to create a Yunnan known for its integrity and keeping promises. We have established a public credit information sharing platform, improved mechanisms for rewarding trustworthiness and punishing dishonesty, and have continuously expanded the application scenarios for credit. We have ensured that promises made to enterprises are kept. In 2023, credit building in Yunnan province was honored as a national progressive unit.

Business entities are not only the driving force for development, investment and innovation but also essential for employment, entrepreneurship and people's livelihoods. In recent years, benefited by the improvement of the business environment, the number of business entities in Yunnan has been consistently growing, becoming more active, larger and stronger. By the end of April this year, there were over 6.57 million registered business entities, with an average annual growth rate of over 20% in the past three years. Among them, the number of industrial enterprises above designated size, qualified construction companies, wholesale, retail, accommodation and catering enterprises above designated size and service enterprises above designated size have exceeded 23,000. Over the past three years, these "four major" enterprises have achieved an average annual growth rate of 12.3%.

Investing and starting a business in Yunnan not only allows you to enjoy the "Yunnan way of life" but also to share in the "Yunnan opportunities." We will continue to deeply engage in actions that create a first-class business environment, making it more convenient for enterprises to conduct business, feel more secure in their operations and where their rights are better protected.

Thank you.

Cnr.cn:

Many people, including myself, share the same sentiment that Yunnan is a distant place of poetry and a hometown of dreams. With its unique charm, Yunnan attracts visitors from all over the world and has become the preferred destination for many travelers. Could you please elaborate on how Yunnan plans to enhance the cultural tourism experience for visitors and fully provide cultural tourism services? Thank you.

Wang Yubo:

Thank you for the great attention and support given to the development of Yunnan's cultural tourism industry. Yunnan boasts beautiful mountains, pristine waters, excellent ecological conditions, friendly people and breathtaking scenery. Friends who have visited Yunnan have all been deeply impressed by the landscapes throughout the province. Dali, Lijiang, and Xishuangbanna offer picturesque views, while the Stone Forest Scenic Area, Shangri-La, Jade Dragon Snow Mountain and Lugu Lake have gained international fame. Yunnan is home to 777 traditional Chinese villages, six World Heritage sites, eight national historical and cultural cities and over 624 scenic spots rated above A-level, all of which rank among the top in the country. People who have visited Yunnan often say that the province is filled with scenic beauty and charm. Tourism is the golden calling card of Yunnan. Our promotion of "a Yunnan way of life" has gained widespread recognition, with over 34 billion views across various online platforms. During this year's May Day holiday, Yunnan welcomed over 38 million visitors. Tourism in Yunnan has been consistently heating up during this period, with airports and train stations bustling, hotels continuously accommodating guests and tourist attractions full of visitors.

We will continue to strengthen our golden brand of tourism by focusing on three main aspects:

First, we will focus on innovation in business forms to ensure that when people come to Yunnan, they naturally slow down and stay longer. Yunnan is a place where time slows down. You can enjoy a cup of coffee, brew a pot of Pu'er tea, read a good book, savor delicious food, explore ancient towns and stroll through night markets to experience the rich local life. We are developing rural tourism, health tourism, cross-border tourism, sports tourism and educational tourism according to local conditions, continuously innovating new tourism-focused products to better meet the high-quality and diverse needs of tourists.

Second, we will focus on the integration of culture and tourism to ensure that when people travel around Yunnan, they not only appreciate the beautiful landscapes but also experience the profound culture. This year, China Internet Media Forum and the National Conference on Reading were held in Yunnan, allowing everyone to fully experience that Yunnan's charm lies not only in its natural scenery but also in its cultural heritage. We will promote the deep integration of culture and tourism, leveraging resources related to the Party's heritage, festival economies, intangible cultural heritage and tourism performances to integrate culture into all aspects of tourism, such as catering, accommodation, transportation, sightseeing, shopping and entertainment, enhancing the content and appeal of tourism and leisure.

Third, we will focus on improving services to ensure people have confidence in the safety of their food, feel comfortable with where they are staying, and are able to enjoy themselves in Yunnan. We have organized two rounds of special actions to regulate order in the tourism market, yielding good results. According to the survey, in the first quarter of this year, half of all tourists in Yunnan came from outside the province, and over three-quarters of them were repeat visitors, a distinct feature that is particularly prominent in Yunnan. We will continue to take special actions to rectify issues such as unreasonably cheap tours and forced shopping during tours. We will continue to provide practical services for tourists, such as precise guidance, volunteer services, and safety reminders, and welcome domestic and foreign visitors with first-class services.

Cangshan Mountain is like a beautiful picture without ink, which has lasted for thousands of years, and Erhai Lake is like a guqin without a string, which has played melodious sounds through the ages. Tourists from home and abroad are welcome to visit Yunnan, where they can tour ancient villages, experience the joy of the water-splashing festival, attend a long street banquet, and enjoy the March Street Festival. Everyone will indulge in their stay in Yunnan and have a worthwhile trip here.

Thank you!

Economic Daily:

Nowadays, many people think of Yunnan when talking about agricultural products such as flower cakes, Pu'er tea, and panax notoginseng. What steps will Yunnan take next to develop its distinctive and competitive industries further? Thank you.

Wang Yubo:

Thanks to this reporter for your question. I'll answer this question. The industries in Yunnan have distinctive features. Only with strong industries can a province be strong and its people rich. We have prioritized ecological conservation and pursued green development, focusing on developing distinctive and competitive industries. We have developed new quality productive forces based on local conditions and made every effort to build an important national clean energy base, a national strategic non-ferrous metal industry base, a modern agroecology base with plateau characteristics, and a world-famous tourist destination. Industries such as green silicon, green aluminum, new energy batteries, and biomedicine are developing rapidly. From 2021 to 2023, industrial investment in Yunnan province increased by 21% annually, with investment in the industrial sector growing by 20.4%. Industrial investment accounted for more than half of total investment, with the investment in the industrial sector ranking first among key industries. Industrial transformation and upgrading are accelerating. Here, I'd like to give you a specific introduction.

First, we will consolidate and improve the energy and non-ferrous metal industries, which have been the traditional pillar industries of Yunnan. In 2023, the proportion of installed green energy and green power generation capacity were 38 and 55 percentage points higher than the national average, respectively. The output of 10 non-ferrous metals, including copper and tin, ranks among the top nationwide. We should not only maintain this foundation but also further develop it. We will focus on transformation and upgrading, accelerate the construction of a leading province in green energy, improve our capacity to guarantee a stable supply of non-ferrous metal resources, as well as the capacity to conduct intensive processing, and infuse traditional industries with new vitality.

Second, we will foster and develop the green aluminum, silicon photovoltaic power, and new energy battery industries, which are Yunnan's "new three" industries. The green aluminum production capacity has risen from 1.68 million tons in 2017 to 6.33 million tons, and the growth rate of the value-added output of the silicon photovoltaic industry has stayed above 25% for 22 consecutive months. The new energy battery industry has achieved a breakthrough in growing from scratch and developing steadily, becoming a strong growth driver for the industrial economy. We will promote these three industries by extending industrial chains and advancing clustered development, truly building Yunnan into the "Chinese valley of green aluminum," the "photovoltaic power capital", and an "important industrial base for new energy batteries in China."

Third, we will specialize in biomedicine, new materials, and the advanced equipment manufacturing industry, all of which are being developed based on Yunnan's local resources. For example, it is well-known that artemisinin was first extracted on a large scale in Yunnan and in 2023, the province took a leading position in the number of vaccines approved for use. Industries such as indium, platinum, germanium, and titanium have significant influence globally. Industries such as high-end power equipment, mechanical equipment, and numerically controlled machine tools have a solid foundation. We will leverage our resource advantages and industrial foundation to drive the formation of innovation alliances between enterprises, universities, and research institutes. We will also accelerate breakthroughs in key technologies and advance their application to effectively enhance the competitiveness of our industries.

Fourth, we will strengthen the plateau's special agriculture, cultural tourism, and modern logistics industries. These three industries have solid foundations and immense development potential. Currently, we are at a crucial juncture of transitioning from scale-oriented to quality and efficiency-oriented development. In 2023, the output value of Yunnan's key agricultural industries throughout the entire industrial chain reached 2.5 trillion yuan. For two years in a row, Yunnan has ranked among the top in the nation for agricultural investment. Total tourism revenue reached 1.44 trillion yuan, and total revenue from the modern logistics industry reached 852 billion yuan. We will systematically focus on attracting investment, integrating development, brand building, and market expansion to transform industrial development from scale to quality and efficiency.

Thank you.

Zhonghongwang.com:

Yunnan is at the forefront of China's opening-up to South and Southeast Asia. Could you please elaborate on Yunnan's achievements in deepening cooperation and exchanges with these countries and regions in recent years? What are the next steps? Thank you.

Wang Yubo:

Thank you for the questions. I'll invite Mr. Liu Yong to answer them.

Liu Yong:

Thank you for the questions. Yunnan's economic development leverages its geographical advantage and relies on opening-up. In recent years, Yunnan has actively integrated into and contributed to high-quality Belt and Road cooperation. By promoting development through extensive opening-up, Yunnan has made significant progress in building itself into a center with radiation effects for South and Southeast Asia.

We have comprehensively strengthened the "hard connectivity" of infrastructure. The domestic sections of the China-Vietnam, China-Laos and China-Myanmar international corridor highways have been completed. Yunnan has the largest number of cities with air routes to South and Southeast Asia in China. The China-Myanmar oil and gas pipeline operates safely and smoothly, and 14 cross-border power grid interconnection channels have been built. Since the opening of the China-Laos Railway, over 10,000 freight trains have run, carrying more than 34 million passengers and over 39 million tons of cargo. Leveraging the operation of international freight trains running on the China-Laos Railway, like the Shanghai-Kunming Lancang-Mekong Express freight train service, goods can now reach ASEAN markets within five days from Shanghai, 10 days faster than before. We will expand the "golden corridor" effect of the China-Laos Railway, accelerate the construction of the China-Laos-Thailand leading and demonstration channel, closely integrate with projects like the China-Europe Railway Express and the New International Land-Sea Trade Corridor, and build a multidimensional connectivity network.

We continuously promote the "soft connectivity" of trade rules. We are actively participating in the construction of the China-Indochina Peninsula Economic Corridor and the Bangladesh-China-India-Myanmar Economic Corridor. Meanwhile, we are fully integrating with the Regional Comprehensive Economic Partnership (RCEP) and have established a multi-level opening-up platform system, promoting the vigorous development of trade and investment. Yunnan's trade with South and Southeast Asian countries increased from 72.5 billion yuan in 2013 to 125.8 billion yuan in 2023. Border trade increased by 51.5%, and trading between border residents increased by 55.3% in 2023. We will create a market-oriented, law-based, and internationalized business environment, strengthen cooperation in industrial and supply chains with neighboring regions, promote the coordination of rules, regulations, management, and standards. This will help us better coordinate efforts to further open up.

We continue to deepen cultural exchanges and advance "people-to-people connectivity." We have established 11 multilateral and bilateral cooperation mechanisms with eight neighboring countries and formed 51 pairs of sister cities with countries in South and Southeast Asia. We have built 30 pairs of border-friendly villages and implemented aid projects in neighboring countries. These projects include infrastructure construction, agricultural technology promotion, skills training, and education assistance. These efforts have benefited over 2 million people, bringing communities closer together. Yunnan universities offer majors in 15 languages from South and Southeast Asia, which are highly popular in terms of enrollment and employment. We will continue to forge friendships and partnerships with our neighbors, deepening cooperation with neighboring countries in public health, green development, science, education, and culture. We will promote the implementation of more "small and beautiful" projects, elevate our partnerships to new levels, and foster closer ties.

Thank you.

Beijing Youth Daily:

In 2020, Yunnan announced that all rural poor people in the province had been lifted out of poverty under the current standard. Four years have passed since then. What are their lives like now? Have their pockets become fuller? Additionally, how do you plan to consolidate the poverty alleviation achievements and promote comprehensive rural revitalization to further improve people's lives? Thank you.

Wang Yubo:

Thank you for your questions; I will answer them. The fight against poverty is not the end, but the starting point of a new life and new endeavors. In recent years, we have made prevention of a large-scale return to poverty our bottom-line task. We have established a unified provincial government assistance platform for monitoring and helping those at risk of falling back into poverty, and provided targeted assistance to households with unstable incomes, prone to poverty or facing sudden severe difficulties. We have implemented two three-year actions to sustain income growth for rural residents and those lifted out of poverty, to ensure that their incomes continue to grow rapidly. In 2023, the per capita disposable income of rural residents in the province increased by 8%, and the per capita net income of those previously lifted out of poverty increased by 14.8%.

Increasing people's happiness and reducing their worries, and boosting their financial freedom and relieving financial stress, are the most important aspects of our work. Based on preventing a large-scale return to poverty, we are focused on three areas:

First, we are striving to make the people’s pockets fuller. We have already gained considerable experience in this area. For example, Caoba town in the city of Mengzi has implemented the "622" model in the development of the blueberry industry, where 60% of sales revenue is distributed to farmers, 20% to village collectives and 20% to enterprises. In 2023, the average household income reached 100,000 yuan. Yongren county created the "Happy Lane" industrial worker community, providing 243,000 labor opportunities to local enterprises over two years, allowing residents to earn money while taking care of their families. Zhenxiong county has seen more than 35,000 people return to start businesses or find employment in the past two years. We will continue to develop county-level industries that benefit the people and enhance the quality of employment transfers for farmers, ensuring their pockets become fuller.

Second, we are striving to make the people's homes more livable. In recent years, we have worked with a team of experts from China Agricultural University to develop a number of rural revitalization demonstration villages, such as Hebian village and Yunzhong Miao village. Improvements to the rural environment have significantly promoted the development of rural industries, cultural prosperity and social governance. We will learn from and apply the experience of the "Green Rural Revival Program," using rural living environment improvements as a guide to effectively discover, protect, develop and enhance rural value, preserving rural charm and promoting cleanliness, beauty and civility in rural areas.

Third, we are striving to make the people's lives more comfortable. Each year, over 15 million people from Yunnan leave the province for work, and the issue of elderly and child care has always been a concern. We have encouraged officials to act as "honorary principals" and "honorary directors," dispatching key teachers from high-quality local middle schools and medical staff from provincial hospitals to improve every school and hospital close to the people. We are building and operating canteens for the elderly and child-friendly spaces in rural and community settings to meet the dining needs of the elderly and provide companionship, knowledge and happiness for left-behind children. We will continue to address the concerns and expectations of the people in areas such as living conditions, employment, education and healthcare, ensuring they enjoy a better life in all respects.

Just now, I addressed the development of our province's characteristic industries. The income growth of rural residents is closely related to agricultural industry development. Mr. Wang Xiangang will now elaborate on how to continue strengthening and improving plateau characteristic agriculture.

Vigorously developing plateau-featured agriculture is General Secretary Xi Jinping's earnest advice to Yunnan's "three rural issues," namely, agriculture, rural areas and rural people. In fact, Yunnan encompasses almost every type of climate in China from the southernmost to the northernmost and from the easternmost to the westernmost, including tropical, subtropical, temperate and cold zones. The highest altitude is 6,740 meters and the lowest altitude is 76 meters. Yunnan has unique conditions for developing agriculture. Whatever you plant will grow, and whatever grows will be in good quality. For example, as we all know, Yunnan's flowers are world-renowned and Yunnan is the world's largest fresh cut flower production area. Last year, our fresh cut flower production reached 19 billion, which is equivalent to an average of 3 flowers for each person in the world. Kunming Dounan Flower Market has become a benchmark for flower trading in Asia and even the world. For another example, Yunnan's tea leaves are fragrant and have a profound history. Yunnan is the core origin of tea trees in the world. There are still a large number of ancient tea trees that are thousands of years old on the banks of the Lancang River. According to the verification and confirmation by relevant national departments, Yunnan's tea leaf area, output, and green organic tea gardens ranked first nationally in 2023. The cultural landscape of the old tea forests of Jingmai Mountain in Pu'er, has been included in the World Heritage Site. Besides, Yunnan's coffee is fragrant, with an area and output accounting for over 98% of the country. Yunnan is known as one of the most suitable areas for coffee cultivation in the world. Therefore, the quality of Yunnan coffee is also recognized by the world. In addition, Yunnan's fruits have long been famous at home and abroad, and it is also the province with the richest variety of fruits in China. Among them, the output of avocados and summer strawberries accounts for more than 80% of the country. Many friends want to go to Yunnan to eat various kinds of fruits. What's more, Yunnan's traditional Chinese medicine (TCM) is of high quality. Yunnan boasts more than 145 kinds of TCM plants, accounting for over 50% of the nation's total. Panax notoginseng, paris polyphylla, and gastrodia elata are well-received nationwide. Many kinds of TCM serve as both food and medicine, and a consensus has been reached that seldom TCM prescriptions are without Yunnan TCM. 

Distinctive, green and high-quality are the defining characteristics of Yunnan's agriculture. Following General Secretary Xi Jinping's directives, we will adopt "greater agriculture" and "greater food" approaches, accelerating the construction of a strong province in distinctive agriculture. In enhancing ecological agriculture, we will speed up the green transformation of planting and breeding methods, establish a comprehensive green development standard system for the entire agricultural industry chain, and resolutely avoid the excessive use of water, fertilizer and pesticides, ensuring that our good mountains and good waters produce good products. In boosting agriculture facilities, we will focus on key areas such as modern facility planting and breeding, and address the shortcomings in processing, cold chain, preservation and logistics, comprehensively improving resource utilization and input-output efficiency. In strengthening agriculture efficiency, we will make efforts in good farmland, good seeds, good practices, good systems and good machinery, facilitating agricultural modernization with technologies. In expanding shared agriculture, we will improve mechanisms that link and benefit farmers with rural industries, integrate small farmers into large industries, develop large industries and expand large markets, ensuring that more added value from industries benefits rural areas and farmers. Thus, allowing more people to enjoy the fruits of development.

Yunnan has entered its rainy season in recent days. The season is incredibly good for the province as a large variety of wild mushrooms are gradually coming on the market. Within the industry, there's a saying: "Mushrooms elsewhere are vegetables, but mushrooms in Yunnan are delicacies." We invite everyone to join a mushroom feast and come to Yunnan to taste these fresh and delicious seasonal treats.

Thank you. 

Xing Huina:

Due to limited time, the last question please. 

CCTV:

In 2020, during his inspection tour in Yunnan, General Secretary Xi Jinping visited Simola village in Tengchong and urged the villagers to make the happy Wa ethnic village even happier. Could you tell us how the lives of the villagers in the Wa ethnic village have been in recent years? How has Yunnan Province performed in terms of ethnic unity and progress? Thank you!

Wang Yubo:

Thanks to the reporter from CGTN. I will answer this question. In 2020, General Secretary Xi Jinping visited Simola Wa Village in Tengchong city during his inspection tour to Yunnan, saying to the villagers: "make the happy village even happier." Simola means "a place of happiness" in the local language. After China completes the building of a moderately prosperous society in all respects, it is necessary to comprehensively promote rural vitalization to make the happy village even happier, General Secretary Xi Jinping said this to the villagers during his visit. Over the past four years, we have kept General Secretary Xi Jinping's expectations in mind and developed rural industries with local features in light of actual conditions. More and more people have made their living by engaging in tourism and other eco-friendly businesses. Some of them are engaged in livestreaming e-commerce, turning the local mountain specialties into trending products on the internet. Simola Wa village has now become a national 4A-level scenic area, a beautiful leisure village and a demonstration village on rural governance. Its per capita net income in 2023 reaching 23,000 yuan, nearly double that of 2019. 

As we all know, Yunnan is home to a large number of ethnic groups, with all 56 of China's ethnic groups distributed, including 25 indigenous ethnic minorities. It is one of four provinces within the country where the minority population is larger than 10 million. All nationalities are one family, and the whole family should live better lives. The work we will carry out is enriched with the connotation and significance of forging a strong sense of community among the Chinese people, we will coordinate improving people's livelihood and winning public support to rally the people of all ethnic groups like pomegranate seeds. 

We insist on building a beautiful homeland together as one family. We focus more policies, projects and investment to areas with large ethnic minority populations. There are 11 airports operating in areas with large ethnic minority populations. High-speed rail or bullet trains are available in six of the eight autonomous prefectures. Villages in all areas with large ethnic minority populations have access to paved roads, postal communication and 4G networks. Every year, over 5 million people leave the mountains with many of them go to the eastern regions to find jobs. In the new era, GDP of ethnic autonomous areas has grown by an average of 9% annually, higher than the national and provincial average. In 2023, collective annual economic income of 374 villages exceeded 100,000 yuan and the per capita disposable income exceeded 20,000 yuan, an increase of nearly 10,000 yuan compared with the end of 2019. 

We are committed to safeguarding ethnic unity as one family. In Yunnan, scenes of people of different ethnic groups living in harmony can be seen everywhere. Like He Wanchun's family in Diqing, there are four ethnic groups his family of more than 20 people. Our research has found that there are seven ethnic groups among the 186 households in Dali's Zhengjiazhuang village. We educate, guide and inspire the people with Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, adhere to core socialist values, deepen cultural efforts to revitalize Yunnan, carry forward and develop fine traditional Chinese culture as well as promote the standard spoken and written Chinese language to let people of all ethnic groups build a shared spiritual home for the Chinese nation through exchange, interaction and integration. 

We are united as one family in safeguarding our sacred national territory. Yunnan is one of the provinces with the longest borderline in the country, with 16 cross-border ethnic minorities. We have strengthened China's national defense through joint efforts of the Party, the government, the military, police and civilians. In addition, we are strengthening the construction of infrastructure and public service facilities in border areas, developing border tourism and other industries, striving to achieve prosperity for border residents, and build beautiful and stable borders with strong border defenses. Veteran Party chiefs from border villages of the Cangyuan Wa Autonomous County have got a letter in reply from General Secretary Xi Jinping. As one of the border villages, Xiabanba village in recent years has attracted a large number of tourists to visit border areas by developing tourism with local features. Over the past three years, the average annual growth rate of per capita net income has been 34.3%. The villagers say that they are now living prosperous lives and that they can, at the same time, take care of their families and protect the borders.

Thank you.

Xing Huina:

That concludes today's press conference. Thanks to the three speakers as well as all the reporters.

Translated and edited by Zhang Rui, Wang Qian, Li Xiao, Wang Yanfang, Ma Yujia, Yuan Fang, Liu Caiyi, Huang Shan, Xu Kailin, Wang Yiming, Wang Ziteng, Xiang Bin, Yang Xi, Li Huiru, Liu Jianing, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.