.

Read in Chinese

Speakers:

Mr. Huang Qiang, deputy secretary of the Communist Party of China Sichuan Provincial Committee and governor of Sichuan province

Mr. Zuo Yongxiang, vice governor of Sichuan province

Mr. Dai Yongbo, director of the Sichuan Provincial Development and Reform Commission

Mr. Wu Qungang, director of the Science and Technology Department of Sichuan Province

Chairperson:

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

Date:

May 27, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 24th briefing in the series "Promoting High-Quality Development." Today, we have invited Mr. Huang Qiang, deputy secretary of the Communist Party of China (CPC) Sichuan Provincial Committee and governor of Sichuan province, to brief you on promoting high-quality development and undertaking Sichuan's mission to boost development of China's western region, and to take your questions. Also present today are Mr. Zuo Yongxiang, vice governor of Sichuan province; Mr. Dai Yongbo, director of the Sichuan Provincial Development and Reform Commission; and Mr. Wu Qungang, director of the Science and Technology Department of Sichuan Province. 

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

Huang Qiang:

Good morning. Thank you for your interest in Sichuan.

Sichuan has long been a strategic heartland of China, known for its large population, strong scientific and education sectors, and robust economy. Since the 18th CPC National Congress, General Secretary Xi Jinping has made multiple inspection visits to Sichuan, issuing a series of important instructions. We have firmly borne in mind the general secretary's instructions, perceiving our strategic position and mission based on the overall national development. We are resolutely promoting high-quality development, and have got off to a good start in leading Sichuan's modernization through Chinese modernization. 

The development of the Chengdu-Chongqing economic circle, personally envisioned by General Secretary Xi Jinping, is a major regional strategy of the country and a main driving force behind Sichuan's modernization endeavor. Together with Chongqing, we are creating a key growth driver and new source of momentum for the high-quality development of the western region. The development of the Chengdu-Chongqing economic circle emphasizes integration and high quality, enhancing the synergy between the two megacities of Chengdu and Chongqing. It prioritizes the growth and expansion of the two cities to accelerate the rise of the western region, while improving infrastructure connectivity. Chengdu and Chongqing are jointly fostering world-class industrial clusters such as in electronic information and automobiles to build a western science city and a financial center. A series of services that can be offered in both Sichuan and Chongqing have been introduced for the benefit of residents, providing them with a more convenient cross-city lifestyle. Additionally, Chengdu is expediting efforts to build itself into a park city demonstration zone that applies the new development philosophy. Last year, Chengdu's economic output exceeded 2.2 trillion yuan. 

Despite being a western province, Sichuan boasts abundant resources in science, education and talent, and covers all 41 industrial categories. We have vigorously advanced the deep integration of sci-tech innovation with industrial innovation, fostering new quality productive forces according to local conditions. Sichuan is home to 137 universities and 369 research institutions. In recent years, the authorities have launched several strategic sci-tech initiatives in Chengdu, bringing the total number of national-level sci-tech innovation platforms to 205. Two weeks ago, the fifth plenary session of the 12th CPC Sichuan Provincial Committee announced the decision to focus on developing new quality productive forces and steadfastly promote high-quality development. Leveraging our industrial foundation as well as research advantages, we have initiated efforts to break new ground in cutting-edge technologies, implementing a number of major sci-tech projects. We have prioritized artificial intelligence (AI) as the top innovation project and driven the development, popularization and application of the whole green hydrogen industrial chain. We have fostered strategic emerging industries such as biotechnology, satellite networks, intelligent connected new-energy vehicles, drones and industrial internet, and vigorously developed low-altitude economy and commercial spaceflight. At the same time, Sichuan's traditional industries are also substantial in scale. We have energetically updated traditional industries with intelligent and digital technologies, and accelerated the growth of three national strategic emerging clusters and three national advanced manufacturing clusters. Chengdu, Deyang, Mianyang and Yibin have made the list of the country's top 100 advanced manufacturing cities.

Sichuan's economic output is rising steadily. Earnestly implementing General Secretary Xi Jinping's important directive that major economically developed provinces should shoulder greater responsibilities, we have promoted high-quality development as quickly as possible, striving to contribute to the nation's stable economic growth. Last year, the province's economic output exceeded 6 trillion yuan, growing by 6% and ranking joint-first among the top 10 most economically developed provinces. In the first quarter of this year, economic output increased by 6.1%. Regarding promoting new industrialization as the primary economic growth driver, we have vigorously enhanced the scale and quality of six major advantageous industries, with the scale of the electronic information, food and textiles, as well as energy and chemicals industries each exceeding 1 trillion yuan. we have facilitated investment in sectors such as industrial development, infrastructure and livelihood programs. Last year, our industrial investment grew by 22.3%, with railway and highway investments ranking first nationwide and total investments in ongoing water conservancy projects hitting a historical high. Consumer potential has been unleashed, with the growth rate of total retail sales of consumer goods in Sichuan exceeding the national average by 2 percentage points. The hosting of the Chengdu Universiade and the BWF Thomas & Uber Cup Finals 2024 has revitalized sports and entertainment consumption. Nowadays, tickets for sports events and concerts in Chengdu are in high demand. Additionally, we have endeavored to stabilize foreign trade and investment, maintaining eighth place nationwide in terms of imports and exports. 

Sichuan bears significant responsibility for safeguarding China's food security, energy resource security, and ecological security. We are rapidly developing strategic production bases to secure the nation's supply of vital primary goods, while simultaneously elevating Sichuan's agricultural sector to new heights in the new era. Last year, grain production reached a record high of 35.94 billion kilograms, the highest in 26 years. Sichuan stands as China's leading producer of hydroelectric power. With electricity transmission from west to east, 30 out of every 100 kilowatt-hours of hydropower in the country is generated in Sichuan. Sichuan boasts the nation's largest reserves and highest annual natural gas production, including shale gas. With gas pipelines transmitting resources from west to east, 24 out of every 100 cubic meters of China's natural gas output originates from the province. We are implementing a new round of strategic actions to explore mineral resources and accelerate the comprehensive development of vanadium, titanium, rare earths, lithium, and other mineral resources. We are relentlessly pursuing blue skies, clear waters, and clean lands, while constructing world-class facilities like the Giant Panda National Park and the Ruoergai Wetland National Nature Reserve. The water quality of the Sichuan sections of the Yangtze River and the Yellow River's main channel remains at Class II or above, allowing clean water to flow eastward.

At the same time, we remain committed to pursuing high-quality development while maintaining a high level of safety. We are steadfastly upholding critical redlines for safety, ecological preservation, arable land conservation, local government debt levels, and statistical data integrity.

Although Sichuan's economic aggregate has risen to rank fifth nationwide, the province still grapples with the fundamental challenge of imbalanced and insufficient development. Faced with a severe and complex situation, we have fully implemented the policy decisions and plans of the CPC Central Committee and the State Council. We are resolutely tackling these challenges, focusing on practical work, and striving to accomplish the annual economic and social development goals and objectives.

That's all for now. Thank you, everyone.

Shou Xiaoli:

Thank you, Mr. Huang, for your introduction. Next, we will move on to the Q&A session. Please identify the media organization you represent before asking your questions.

CCTV:

We have noticed that the term "high-quality development" appeared frequently in Sichuan's provincial government work report this year, appearing more than 30 times. Could you please elaborate on how Sichuan is prioritizing high-quality development as a key focus, and share some of the specific initiatives and measures being taken? Thank you.

Huang Qiang:

Thank you for your question. I will answer it. High-quality development is a long-term and challenging task. I will address this issue from the perspectives of our understanding, our approach, and the key breakthrough areas we have identified.

In terms of our understanding, Sichuan adheres to the guidance of the new development concept, emphasizing that development must be of high quality and can only be achieved through high-quality means. For the first time, this year's Sichuan provincial government work report lists significant progress in high-quality development as one of the important objectives, calling for a comparative assessment of real achievements in high-quality development among all regions in the province.

Regarding our work approach, Sichuan persistently considers sci-tech innovation as the primary driving force for high-quality development. We advocate the integrated advancement of science and technology, industry, education, and talent. While Sichuan possesses abundant innovation resources, there is still a disconnect between research and production. How can we resolve this issue? To address this, we have taken the lead in establishing technology innovation centers or innovation consortia with enterprises as the main entities, bridging the gap between "labs" and "production lines." We strongly encourage, motivate, and embrace disruptive, cutting-edge, and pioneering innovations. While emphasizing innovation from "zero to one," we also focus on breakthrough innovations, enabling more research achievements to quickly transform into industrial products and development outcomes. For instance, heavy-duty gas turbines are often referred to as the "heart" of many significant equipment in national industries. After 13 years of dedicated efforts, Dongfang Electric Corporation independently developed and commercially deployed the first domestically produced F-class 50 MW heavy-duty gas turbine, breaking foreign monopolies. The media have praised this achievement as a source of pride for China. We have supported leading enterprises in establishing seven innovation consortia in areas such as green hydrogen, vanadium-titanium, and humanoid robotics, breaking through several key core technologies and developing multiple significant products.

In breaking through bottlenecks, Sichuan persists in utilizing innovative mechanisms to overcome institutional barriers. When progress stagnates, we rely on innovation, and when innovation faces obstacles, reforms become necessary. We approach the challenges and difficulties encountered in achieving development goals with a mindset of reform and innovative solutions, making incremental changes that lead to profound transformations. We persevere and strive for long-term, impactful results. For example, the Sichuan-Tibet Railway is the most challenging railway project in human history. The section under construction from Ya'an to Nyingchi will traverse seven rivers, eight mountain peaks, and over 200 active fault zones – a feat akin to building a "giant roller coaster" amidst towering mountains and steep ridges. We are exploring the creation of a "testing ground" for the new system for mobilizing resources nationwide. This involves enterprises and local governments jointly establishing the National Sichuan-Tibet Railway Technology Innovation Center, integrating the strengths of different systems to form a cohesive force. We have already overcome, and continues to tackle engineering challenges associated with this global project of the century. Thank you.

The Paper:

We've noticed that, during the May Day holiday, Sichuan reached new records in multiple consumption-related statistics, with popular and consumption-heavy cities such as Chengdu, Leshan and Yibin becoming hotspots for consumer activities. In addition, Sichuan also launched a year-long campaign to boost consumption in 2024. What plans and progress has Sichuan made in terms of boosting consumption? Thank you.

Huang Qiang:

Thank you. Mr. Zuo will take this question.

Zuo Yongxiang:

Thank you for your interest in Sichuan's consumer sector. As mentioned earlier by Mr. Huang, Sichuan is not only an economically developed province but also a major player in the domestic consumer market. With a population of 91 million, Sichuan has a market reach covering nearly 400 million people in the surrounding region. In 2023, our total retail sales of consumer goods amounted to 2.63 trillion yuan, ranking the fifth in China, up 9.2% year on year. The province boasts a profound business heritage and vibrant consumption atmosphere. Local people's catchphrases, such as "bashi (meaning good and comfort) and anyi (meaning comfort and ease) in Chinese pinyin," serve as a testament to the people's love for life and their inclination towards consumption.

Catering consumption is a highlight of Sichuan's consumer market, with world-renowned Sichuan cuisine attracting visitors from around the globe. We have been working to promote local cuisine brands and strengthen brand protection. Through the development of specialties, well-known restaurants and celebrity chiefs, we have preserved and innovated the time-honored brands of Sichuan cuisine. We have also improved local legislation in this sector. Sichuan offers a wide range of catering choices throughout its streets and alleys. Chengdu alone boasts over 10,000 tea houses, 20,000 hotpot restaurants and 300,000 eateries of all kinds. In recent years, Chengdu has hosted world-class sporting events such as the 31st FISU World University Games, the 2022 World Team Table Tennis Championships Finals and the Thomas and Uber Cup Finals 2024, driving a continued boom in the consumer market. The International Horticultural Exhibition 2024 Chengdu kicked off in the city on April 26, already attracting over 300,000 visits for consumer activities.

We also keep upgrading business forms and redoubling efforts to improve the quality of business circles at different levels. We have implemented smart renovations in traditional commercial areas while also making progress in constructing demonstrative pedestrian streets. Attracting a number of well-known brands, Chengdu's Chunxi Road and Jiaozi Park have emerged as iconic business hubs with global influence. In addition, each year within the province we have introduced 40 consumption scenarios, with each one showcasing distinctive Sichuan characteristics. We also publish a "heat map" based on consumer popularity annually. As a result, tourist attractions such as the Eastern Suburb Memory Fashion Industrial Park in Chengdu, the International Dinosaur Lantern Show in Zigong, and Zhanggong Bridge Food Street in Leshan have all been bustling with visitors.

Walking on the streets in Chengdu, you will find the thousand-year-old Daci Temple standing adjacent to the fashionable Taikoo Li business circle. The integration and coexistence of traditional and modern elements offer a glimpse into the connection between Sichuan's consumer market and the rest of the world. Furthermore, we advocate for the development of the first-store economy, and have attracted 45 international brands to establish in Sichuan their first stores either domestically or globally. We also give equal emphasis to both "bringing in" and "going global" strategies, supporting local enterprises in exploring both domestic and overseas markets. As a result, locally produced caviar has entered the international market, accounting for 12% of the global market share. A world-renowned liquor conglomerate has also established its first whiskey producing base in Asia here in Sichuan, with their products selling out immediately upon launch.

Currently, we are expediting the development of consumer destinations with distinctive Bashu (the ancient name for Southwest China including Sichuan province and Chongqing) characteristics. We believe that a Sichuan known for its delicious local cuisine, exciting recreational facilities and exceptional consumer choices will remain vibrant. Thank you.

Guangming Daily:

This year marks the fifth year of the development of the Chengdu-Chongqing economic circle. According to our observations, entrepreneurs from both regions have been engaging in more frequent communication and cooperation, with coordinated development among industries becoming a new highlight of this development strategy. Can you elaborate on the progress made in industrial coordination between Sichuan and Chongqing? Thank you.

Dai Yongbo:

Mr. Huang also just briefly spoke on the initial progress of the Chengdu-Chongqing economic circle construction. The strategy has yielded fruitful results since its implementation. In 2023, the GDP of the dual-city economic circle reached 8.19 trillion yuan, contributing 6.5% of China's GDP with only 2% of the country's land area. Its role as China's strategic hinterland has been significantly enhanced.

Sichuan and Chongqing enjoy abundant scientific and educational resources as well as having a strong industrial foundation. The two regions have collaborated to advance new industrialization, accelerating the integration among industrial chains involving supporting facilities, factor supply, product value and technological innovation. They have also launched a campaign to develop advanced manufacturing clusters in the Chengdu-Chongqing region. Such industrial coordination has yielded notable results, making the whole greater than the sum of the parts.

We have also redoubled efforts to boost four pillar industries: electronic information, equipment manufacturing, automobile and specialty consumer goods, each worth a trillion yuan. Additionally, we have coordinated efforts to improve industrial support, establish related platforms and develop brands, leading to the emergence of a world-class industrial cluster. The electronic information industry in Chengdu and Chongqing is the country's first cross-provincial advanced manufacturing cluster at the national level, with its output value accounting for one-seventh of China's total. Sichuan ranks the third domestically in the shipment of new display panels, with nearly one-fifth of the world's flexible display screen products being made in Sichuan.

The industries of Sichuan and Chongqing have long been deeply intertwined, with both places focusing on creating a symbiotic and win-win industrial system, and the trend of industrial synergy has become increasingly evident. Over 400 auto parts companies provide services for vehicle assembly, achieving a comprehensive matching rate of 80%. In the field of new energy vehicles, Sichuan Contemporary Amperex Technology Co. Ltd. and Chongqing Changan Automobile Co. Ltd. have jointly established CATL-Changan EV Battery Co. Ltd. and power batteries made in Sichuan are continuously being installed in vehicles made in Chongqing.

Sichuan and Chongqing are jointly building a sci-tech innovation center with national influence, advancing industrial innovation through sci-tech innovation. We have jointly fostered three national advanced manufacturing clusters, four national strategic emerging industry clusters, a batch of major scientific and technological infrastructure such as a deep underground dark matter laboratory and the Large High Altitude Air Shower Observatory (LHAASO), producing globally influential scientific research results that are rapidly being promoted and applied. Currently, Sichuan and Chongqing are jointly upgrading traditional industries, expanding emerging industries and cultivating future industries, actively undertaking the national layout of major productive forces, and accumulating new momentum for high-quality development.

The industrial collaboration between Sichuan and Chongqing aligns with both of their development needs and the principles of industrial development. It is flourishing and has a very promising future. Thank you.

National Business Daily:

At present, Sichuan and other southern regions are in the middle of the busy farming season. We know that Sichuan has been an important granary and a major agricultural province since ancient times. Could you tell us how this year's summer harvest in Sichuan is going? What good practices have been adopted in recent years to ensure food security? Thank you.

Huang Qiang:

Thank you. I will answer these questions. Sichuan, which enjoys the reputation as the "Land of Abundance," is a region that General Secretary Xi Jinping is deeply concerned about and values greatly. He has issued instructions to us to make comprehensive efforts to promote rural revitalization, build a higher-level "Granary of Abundance" in the new era, and enhance our standing as a major agricultural province.

There is an old Chinese saying: "Food is the first necessity of the people; Stability comes through grain and livestock." As one of China's main grain-producing provinces, Sichuan has made every effort to stabilize policies, maintain cultivation areas and increase per-unit yield. For three consecutive years, our grain output has remained stable at over 35 million metric tons. Currently, the land of Sichuan is bustling with harvesting and planting activities. In response to the journalist's question about the summer harvest, I can tell you that a good summer grain harvest in Sichuan is already a certainty. Last year, Sichuan produced over 66 million pigs, ranking first in the country. To ensure that the "Granary of Abundance" thrives, we must first have fertile fields. We have implemented stringent measures to protect arable land, which is our lifeblood. Last year, we added 33,333 hectares of arable land and reclaimed 2,800 hectares of abandoned land, ensuring every piece of land is utilized.

It is not just about ensuring there is grain in the granaries and meat on people's plates. Sichuan has adopted an all-encompassing approach to food, striving to diversify the food on people's tables and increase farmers' incomes through various means. Sichuan leads the nation in the production of 15 agricultural products, including rapeseed and potatoes. We are committed to making the most of our unique local products and promoting the integrated development of primary, secondary and tertiary industries. Ziyang city produces over 70% of the country's lemons, with last year's exports reaching 128 million yuan. In Meishan, the hometown of (famed historical poet) Su Dongpo, small pickles have been turned into a multi-billion-yuan industry.

Sichuan has 25.33 million hectares of forests. We have taken the lead nationally in establishing the "Forest Granary of Abundance," seeking food from the forests. In the primeval oak forests of Ganzi, Aba and Liangshan, about 4,000 metric tons of matsutake mushrooms are produced annually. Harvesting the delicious matsutake, known as the "King of Mushrooms," can provide farmers with an annual income of up to 100,000 yuan. Bamboo is also highly valuable, serving as a substitute for plastic and wood and representing a 100 billion-yuan industry. Sichuan has one-fifth of the country's bamboo forests. We all know giant pandas mostly live in Sichuan and like to eat bamboo, so we have plenty of it. We have vigorously promoted the comprehensive use and full-chain development of bamboo, turning bamboo forests into scenic spots and treasure troves in the beautiful countryside. Forests serve as reservoirs, treasuries, granaries and carbon stores. We are working to make Sichuan a demonstration province for the construction of the "Four Forest Reserves" nationwide, actively promoting "water stored in mountains," "money growing on trees," "grain stored in forests" and "carbon sequestered in wood," striving to achieve a harmonious balance between ecological, economic and social benefits. Thank you.

The Poster News APP:

The governor mentioned earlier that Sichuan has fostered many scientific research institutions and innovation platforms, with abundant resources for sci-tech innovation. As for leveraging the advantages of sci-tech innovation to develop new quality productive forces according to local conditions, what specific measures has Sichuan taken? Thank you.

Wu Qungang:

I'll answer this question, and thank you for your interest in Sichuan's scientific and technological work. Sci-tech innovation is an endless source of strength for developing new quality productive forces, and Sichuan has the confidence and strength to excel in this area. Here, two words can be used to summarize the work: extraordinary and promising.

Speaking of being extraordinary, Sichuan has excellent resource strengths and conditions for developing new quality productive forces. Since the beginning of the "Third Front" program, China has placed significant scientific and technological resources in Sichuan, some of which are China's first or only units in their respective fields. This provides support and confidence for Sichuan to develop these new quality productive forces. For example, the University of Electronic Science and Technology of China in Sichuan recently developed a high-speed communication technology with a transmission speed of 80 gigabytes per second, setting a new industry record. The application of this technology during the Chengdu Universiade allowed global audiences to experience the games as if they were there in person. In Sichuan, many institutions have such unique capabilities as the University of Electronic Science and Technology of China.

Speaking of potential, Sichuan is focused on fostering and developing new quality productive forces. The province has planned carefully based on its actual situation, given high political attention to the implementation of these plans, and adopted a proactive strategy. Therefore, we have confidence in the future. As Mr. Huang mentioned, the fifth plenary session of the 12th CPC Sichuan Provincial Committee was held two weeks ago. At this meeting, arrangements were made for a program to achieve breakthroughs in cutting-edge science and technology. This program, led by innovation, focuses on accelerating the development of new quality productive forces. By launching this initiative, we aim to maximize the pivotal role of sci-tech innovation.

We understand that to fully leverage the role of sci-tech innovation, we must first intensify efforts to secure breakthroughs in core technologies within key fields. In accordance with the arrangements of the plenary session of the CPC Sichuan Provincial Committee, we will take solid steps to implement six major national sci-tech projects in fields such as aerospace, advanced materials, and biological manufacturing. Over the next few years, we aim to solve several bottlenecks and achieve landmark advances that will lead and support future industrial development in Sichuan.

At the same time, we must pay special attention to translating scientific and technological advances into productivity. We will accelerate the improvement of the service system for the application of these advances, making quick progress in building several provincial-level pilot-scale experimental R&D platforms and bases in various sectors and fields. This will help ensure more cutting-edge scientific and technological advances are applied more effectively and faster.

To fully leverage the role of sci-tech innovation to create significant impact with a single breakthrough, we must continue to optimize the environment for sci-tech innovation. We will deepen reforms of the scientific and technological system, and enhance mechanisms for attracting and cultivating talent to inspire greater innovation and creativity. This year, Sichuan will launch a special project for leading scientists in cutting-edge technologies, providing up to 10 years of long-term support for selected high-level talents. This initiative aims to ensure that scientists can fully dedicate their time and energy to research without distractions, achieving major achievements in science and technology, much like a blacksmith in the past would spend years forging the perfect sword. Thank you.

The Beijing News:

We know that Sichuan province boasts abundant cultural and tourism resources, such as sanctuaries for adorable giant pandas, the mysterious Sanxingdui Ruins site, and the amazing Jiuzhaigou. All these places are popular tourist destinations during holidays and festivals. What have been the highlights in recent years regarding Sichuan's efforts to tap into its cultural and tourism resources and advance more high-quality cultural and tourism products? Thank you. 

Huang Qiang:

Thank you. We'll invite Mr. Zuo to answer this question.

Zuo Yongxiang:

Thank you. I can see that you're very familiar with Sichuan's cultural and tourism resources. In the Southern Song dynasty, a poem stated that "the finest landscapes under heaven are in Sichuan," highlighting the province's long-standing reputation for culture and tourism since ancient times. In recent years, we have accelerated efforts to establish Sichuan as a leading province in culture and tourism. The appeal, influence and competitiveness of Sichuan's culture and tourism have continuously increased. During the past May Day holiday, Sichuan welcomed over 40 million tourist visits, reflecting a year-on-year increase of 9.5%. 

First, we have fostered a harmonious interplay among the ancient Shu civilization, Three Kingdoms culture, Red Classics, and various cultural masterpieces. By organizing a series of exhibitions and performances in the Ancestral Temple of the Three Sus, a family known for producing three famous poets whose traditions have been passed down through the ages, we have brought the culture of family traditions out of history and into contemporary life. This embodies the profound familial and national sentiments of the Chinese people. The Sanxingdui site had been buried for thousands of years. When it was uncovered, the Sanxingdui site amazed the world. The new Sanxingdui Museum, completed in July last year, has tripled its previous reception capacity, yet it remains fully booked every day. Since its opening, the museum has received over 4 million visits.

On the other hand, we also cherish nature's precious natural resources and strive to build a world-class tourist destination. We have constructed roads and bridges, improved the transport system and enhanced supporting facilities for tourism, allowing tourists to spend less time traveling and more time sightseeing. Tourists can now easily reach remote scenic spots whenever they want, greatly improving their experience and convenience of travel. For example, with the opening of the Chengdu-Huangshengguan section of the Sichuan-Qinghai Railway, the travel time from Chengdu to Jiuzhaigou has been reduced from 10 hours to three hours. This makes it possible to visit Dujiangyan in the morning and Jiuzhaigou in the afternoon. We have also developed new and diversified tourism products, such as ice and snow hot springs and sun therapy. Previously, ice and snow resources in Sichuan were little known, but now people can enjoy both ice and snow activities in the mountains of Sichuan and warm sunshine in the Panzhihua-Xichang region, sparking a new tourism boom. Last winter, the number of tourists visiting Sichuan province rose 32% and tourism revenue increased 36%, which is a very strong indicator of success.

At the same time, we also highlighted Sichuan's distinctive features by selecting and promoting signature tourism counties and famous products. We created new cultural tourism experiences such as the "Night Cruises along Jinjiang River," "Greenway Cycling," and "Hiking Adventures." Nowadays, it is a vibrant and stylish travel experience for tourists to fly in or take high-speed trains to Sichuan, savoring hotpot, lodging in homestays, admiring pandas, and enjoying concerts. Going to concerts and traveling for music have become new trends in Sichuan's cultural and tourism industry. During the May Day holiday, Chengdu held the "Cactus Music Festival," attracting 60,000 attendees over three days, with more than 60% coming from outside the province.

With its unique cultural and tourism resources, Sichuan has great potential for development. Here, I welcome everyone to visit Sichuan. Our beautiful province will ensure your trip is worthwhile. Thank you.

Nanfang Daily, Nanfang Plus:

In recent years, Sichuan has focused on addressing the issue of unbalanced urban and rural development by using counties as the key entry point for promoting integrated urban-rural development. Could you brief us on the latest progress? Thank you.

Dai Yongbo:

Thank you for your question. Sichuan has a distinct urban-rural dual structure. To promote integrated urban-rural development, we have placed emphasis on the counties and recognized the difficulties in rural areas. We have established the targeted approach of "focusing on both ends while ensuring smooth connectivity in the middle," using the county level as a pivotal entry point to foster urban-rural integration, drawing a new picture of shared prosperity across our urban and rural landscapes.

The idea of "focusing on both ends" refers to building up counties, which serve as the gateway for farmers moving to urban areas. Data from the seventh national census in 2020 showed that the proportion of the population residing in Sichuan's county towns has continued to increase over the past decade, rising from 15% to 30%. In light of this trend, Sichuan has in recent years delegated financial and administrative powers to the county level to improve the functionality of counties and attract more people and industries to settle there. The "other end" refers to developing rural areas. Even if Sichuan's urbanization rate reaches 70% in the future, there will still be 25 million people living in rural areas. We have learned from and applied the experience of the Green Rural Revival Program in Zhejiang province, establishing 1,000 demonstration villages every year and speeding up the construction of beautiful villages with the charm of Bashu. For instance, in Chengdu, there is a bamboo art village, boasting an intangible cultural heritage of more than 2,000 years in bamboo weaving. In transforming the village, we paid special attention to integrating bamboo products, architecture, and landscapes, creating a unique attraction that becomes a favored leisure spot among Chengdu residents.

The concept of "ensuring smooth connectivity in the middle" is about linking towns and villages, with a focus on achieving "four integrations." The first is the integration of resources, which involves opening the "city gates" to allow the rural population to "enter and stay," ensuring they have access to better services. It also includes supporting professionals from all walks of life to contribute to rural revitalization. The second is industrial integration. We have encouraged deeper integration of primary, secondary, and tertiary industries, promoted the intensive processing of agricultural products, and fostered leisure and sight-seeing agriculture. The third is the integration of facilities. We have made efforts to narrow the gap in infrastructure and public services between urban and rural areas, ensuring they are more accessible in rural areas. The fourth is the integration of governance, where efficient governance drives high-level integration. Thank you.

Zhinews of Shenzhen Satellite TV: 

At present, a key focus of the new round of large-scale development in the western region is to accelerate industrial transformation and upgrading through sci-tech innovation. Could you please provide an update on the latest developments in this regard? Thank you.

Huang Qiang:

Thank you for your question, I'll invite Mr. Wu to answer it.

Wu Qungang:

Thank you for your question. You have raised a pertinent issue. Sichuan has always prioritized building a modern industrial system driven by sci-tech innovation. Right after this year's Spring Festival, the CPC Sichuan Provincial Committee and the provincial government held the first major meeting of this year to advance new industrialization, where we laid out comprehensive plans. Generally, we will advance along "two main lines" in light of the specific situation in Sichuan.

First, promoting the industrial commercialization of cutting-edge technologies. Sichuan is not only rich in innovative resources, but also has extensive industry categories. As Mr. Huang just mentioned, Sichuan covers all 41 industrial categories. Therefore, we pay more attention to promoting the integration and alignment of the innovation and industrial chains. In recent years, we have vigorously implemented the initiative for gathering research resources to help Sichuan in the application of sci-tech achievements, supporting the state-level research institutes, universities and colleges in Sichuan to work hand in hand with local enterprises to transform innovative research findings locally, which has yielded good results. For example, an enterprise in the city of Mianyang, Sichuan, developed the first medical cyclotron in China by transforming the cutting-edge technology from a research institute in Sichuan. This equipment can be used to produce isotope drugs, and can also be used to directly treat diseases, while we used to have to rely on imports. Now the company's products have not only occupied one-quarter of the domestic market, but also opened up overseas markets.

Second is upgrading and promoting the high-end development of traditional industries. We have given full play to the role of science and technology as a booster, strived to do a good job in high-end, smart and green development, upgrading the quality and effectiveness of traditional industries, and tried to inject new vitality into traditional industries. For example, Dongfang Turbine Co., Ltd. in Deyang, Sichuan, has built the first 5G digital factory for energy equipment manufacturing. Through the industrial internet platform, the factory's nine workshops, 21 production lines and more than 1,500 machines are operated intelligently, including a very traditional welding workshop. Through technical transformation, the per capita efficiency has been increased by four times, and carbon emissions have been reduced by 380 metric tons each year, which is highly effective. In the future, there will be more and more such intelligent factories and digital workshops in Sichuan, and sci-tech innovation will empower the development of traditional industries, which will surely yield a series of wonderful and exciting achievements.

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

Cover News:

As an inland province, Sichuan has actively promoted coordinated opening-up between inland and coastal, riverside and border areas, and stepped up efforts to integrate into and serve the national opening-up pattern. What measures has Sichuan taken in expanding high-standard opening-up and what results has it achieved? Thank you.

Zuo Yongxiang:

You raise very important questions. Sichuan is not in the border areas or by the sea, it is as you put it — a typical inland province. However, Sichuan has relied on the Tea Horse Road and the southern Silk Road to trade with the world since ancient times. Nowadays, in accordance with the requirements of quickly developing a hub for opening-up to the west and a new base for international competition as the strategic position of Sichuan, we are making strides to transform the inland province into a pioneer of opening-up. In our work, we are mainly focused on the following four aspects: channels, platforms, markets and the environment.

We have accelerated the construction of channels for opening up domestically and internationally, building a three-dimensional, diversified transportation system for opening-up to the world. We have built 48 major channels leading outside of the province and 17 airports. Chengdu, the capital of Sichuan province, is the third city in China to have two international airports. Last year, the air passenger throughput surpassed 75 million. Sichuan's international trains connect with 112 cities abroad, and the China-Europe Railway Express (Chengdu-Chongqing) has handled 30,000 train trips.

We have also strengthened the gathering function of opening-up platforms, expanding the main areas and main force of opening-up. More than 50 national comprehensive bonded zones, high-tech zones, and economic development zones and 121 provincial development zones lead Sichuan's opening-up. The Sichuan Pilot Free Trade Zone has gathered one-quarter of the province's foreign-funded enterprises and accounted for one-tenth of the total foreign trade. A total of 14 reform and innovation outcomes have been replicated and promoted across the country. Chengdu Hi-tech Industrial Development Zone has launched 68 national-level innovation platforms, attracting 800,000 high-level professionals and 134 Fortune Global 500 companies.

We have also focused on cultivating business entities that are open to the world, helping enterprises tap the international market. Last year, we implemented a special initiative to cultivate foreign trade entities, adding nearly 1,000 enterprises with actual achievements in the field, and organized about 3,000 enterprises to participate in more than 150 overseas market expansion activities. Provincial leaders led delegations to explore overseas markets, and added orders worth 68 billion yuan. We also launched a special initiative to expand imports. Imports grew by 25.8% in the first quarter of this year, which was the biggest highlight in foreign trade in the quarter. We continue to host the Well-known Chinese and Foreign Enterprises' Visit to Sichuan serial activities. Foreign direct investment has totaled more than 100 billion yuan in five years, and last year, an average of 2.5 foreign-funded enterprises settled in Sichuan every day.

We have been building a business environment that is market-oriented, law-based and internationalized. We have implemented measures to facilitate payments for foreign visitors, resulting in a ninefold increase in mobile payment consumption by foreigners during this year's Labor Day holiday compared to last year. Since last year, we have also introduced five policies supporting further opening-up, leading to a continuous improvement in international logistics efficiency. Just the day before yesterday, a China-Europe Railway Express train loaded with consumer goods from Sichuan departed from Chengdu to Moscow. The train will reach its destination in 10 days, which is six days shorter than before.

Next, we will soon hold a provincial conference to convey to the world our firm determination to expand opening-up. Thank you.

CNR:

Sichuan is located in the upper reaches of the Yangtze and Yellow rivers and is of significant ecological importance. People who travel to Sichuan for business or tourism often praise the picturesque landscapes of lucid waters and lush mountains through their WeChat accounts. Additionally, the phenomenon of being able to see snowcapped mountains from urban areas of Chengdu frequently trends online. Could you please elaborate on the ecological conservation efforts that Sichuan has undertaken in recent years? Thank you.

Huang Qiang:

Thank you for your question; I'll answer it. As we all know, Qinghai is the source of both the Yangtze and Yellow rivers, and Sichuan is one of the provincial-level regions through which the two major rivers flow. Sichuan contributes one-quarter of the surface water resources of the Yangtze River Basin, providing 40% of the water during the dry season and 26% during the rainy season for the main stream of the Yellow River. It is also one of the 36 global biodiversity hotspots, bearing significant responsibility for maintaining national ecological security.

We have firmly developed a strong sense about the protection of the upstream reaches, with the rate of water quality deemed "good" and "excellent" at national monitoring sections in the province reaching 100% last year.

When it comes to ecology, we should look toward the beloved giant panda. Together with Gansu and Shaanxi provinces, we are actively developing the Giant Panda National Park to a high quality to protect the largest habitat of giant pandas globally. It is gratifying that the status of the giant panda has been downgraded from "endangered" to "vulnerable". Wild giant pandas often come down from the mountains, while just last month, researchers in the Wolong National Nature Reserve encountered three pandas in just one day.

The 3.96-meter-tall bronze divine tree in the Sanxingdui Museum is particularly eye-catching, showcasing the reverence for nature of the people in the ancient Shu Kingdom, a tradition that has endured to this day. Along the Cuiyu Corridor, a section of the Ancient Shu Roads in Guangyuan and Mianyang, there is the world's largest artificial cypress forest, now a popular destination for domestic and foreign tourists. Today, I would like to recommend another scenic spot — Yunfeng Mountain in Ya'an, where there are magnificent Phoebe zhennan trees, with 124 trees over 100 years old, including two towering, lush trees that are 1,700 years old and blossom every year. Having worked in Sichuan for three and a half years, I was surprised to find that Phoebe zhennan trees over 1,000 years old could still produce seeds. Typically, the seeds fall in the spring after remaining on the trees throughout fall and winter, perpetuating the cycle of life. Fourteen years ago, CCTV hailed these two trees as the "Kings of Phoebe Zhennan Trees," and their wood is commonly referred to as "golden nanmu." This forest of Phoebe zhennan trees is truly remarkable.

"Green" is an inherent property of Sichuan, and we will continue to protect and cherish it.

Chengdu is currently hosting the International Horticultural Exhibition, and next year it will host the World Games. We sincerely invite you all to come to Sichuan, experience the vibrant atmosphere of high-quality development firsthand, enjoy the beautiful scenery, taste the delicious food, drink Sichuan wine, and savor Sichuan tea to refresh both body and mind. Thank you.

Shou Xiaoli:

The last two questions.

Phoenix TV:

Sichuan possesses abundant water and natural gas resources. Could you please elaborate on the development, utilization and the role of these resources in ensuring national energy security? Thank you.

Dai Yongbo:

Thank you for your question. Sichuan has unique advantages in clean energy. We are promoting the coordinated development of hydro, wind and solar power, hydrogen, and natural gas to accelerate the construction of world-class high-quality clean energy bases, transforming energy advantages into development advantages.

Sichuan is a significant hydropower base in China, with an installed capacity of around 100 million kilowatts, ranking first nationwide in both installed capacity and annual power generation. Sichuan's greatest advantage lies in the complementary function of hydro, wind and solar power. The basins of the Dadu River, Jinsha River and Yalong River, where hydropower resources are concentrated, are also the richest areas in wind and solar resources. We are advancing the construction of an integrated base for hydro and wind power in the Yalong River Basin, which is expected to have an installed capacity of about 80 million kilowatts after completion.

Sichuan serves as a crucial hub in China's west-to-east power transmission project. Currently, the province has established seven ultra-high voltage direct current (UHVDC) power transmission lines and nine 500-kilovolt alternating current (AC) power transmission lines. Over the past decade, Sichuan has delivered more than 1.4 trillion KWh of green electricity to areas outside the Yangtze River Delta region. Last year alone, the total volume of electricity supplied by Sichuan to eastern China was equivalent to the annual electricity consumption of 60 million households.

Sichuan is a major national base for natural gas production. With 40% of its annual production supplying other provinces, Sichuan delivered 223 billion cubic meters of natural gas last year. We are now collaborating with Chongqing to establish a national production base for natural gas (shale gas) with a production capacity of 100 billion cubic meters, which will better serve the West-to-East Gas Pipeline Project.

Sichuan boasts a solid foundation in hydrogen production equipment, hydrogen storage equipment and hydrogen refueling facilities. The province's abundant renewable resources provide favorable conditions for developing the hydrogen industry. In March, the world's first Chengdu-made hydrogen-powered metro train completed its operations test, and now over 100 hydrogen fuel cell vehicles travel daily along the Chengdu-Chongqing Highway. Consequently, Sichuan has identified green hydrogen as a key new quality productive force and is actively promoting the development of the entire industry chain and its related applications. Thank you.

Shou Xiaoli:

Due to time constraint, last question please.

Science and Technology Daily:

As previously mentioned, Sichuan has designated artificial intelligence (AI) as its "No. 1 innovation project" for this year. Could you please elaborate on Sichuan's advantages in this field and outline the specific measures the province plans to implement? Thank you.

Huang Qiang:

Thank you for your questions. Mr. Wu will answer them.

Wu Qungang:

Thank you. Sichuan is a crucial node in China's east-to-west computing resource transfer project. The province is home to two national computing power platforms and over 1,100 AI enterprises. Additionally, 27 universities and colleges offer AI-related programs. Leveraging this strong foundation, Sichuan has made AI development a top priority to drive high-quality development, concentrating efforts on overcoming significant challenges. Our approach focuses on three key areas: technology, policy and reform.

In promoting technological innovation, we have focused on key areas such as AI chips, computing power servers and algorithm models, conducting organized research efforts to accelerate breakthroughs in original technologies. For instance, a Chengdu-based tech company has innovatively developed "AI plus satellite technology," which intelligently processes images captured from space, filtering out low-value ones and significantly improving satellite efficiency. This company is continuously making advancements, such as striving to process data and generate results directly in space, thereby creating new possibilities for future deep space exploration.

In terms of enhancing policy support, Sichuan has integrated various policies and resources to provide exceptional and targeted assistance, particularly to those promising and committed enterprises. We offer support wherever it is needed, ensuring comprehensive and timely policy backing. For instance, we have facilitated the collaboration of Tsinghua University, Sichuan University and the Chengdu Rongchuang Company, bringing together top resources from both within and outside the province. This special initiative has led to the establishment of the Sichuan Intelligent Sensing and Computing Technology Innovation Center, which quickly gathered over 300 innovative professionals in fields such as chips, algorithms and robotics, rapidly building a strong innovation chain cluster.

To fully leverage the role of reform, as Mr. Huang emphasized, we must overcome institutional barriers through bold innovation. Sichuan has adhered to the principle of "small incision, deep impact," ensuring the smooth integration of education, talent, and science and technology to provide continuous momentum for AI development. Recently, we have introduced new mechanisms by establishing the Sichuan Province Artificial Intelligence College. This initiative is led by the University of Electronic Science and Technology of China, with participation from eight other provincial universities and major companies like Huawei and Tencent. This collaboration has enabled joint efforts between schools and enterprises in talent cultivation, aligning the supply and demand of talent, as well as integrating industry with education. As the saying goes, AI is a great opportunity, but favorable conditions are necessary to seize it. Sichuan will continue to explore new mechanisms and models to drive AI development forward through reform, opening new chapters and seizing the momentum.

That's all from me. Thank you.

Shou Xiaoli:

Thank you to Mr. Huang and all the other speakers and the journalists who are present. Today's press briefing will conclude here. Goodbye.

Translated and edited by Xu Xiaoxuan, Wang qian, Liu Caiyi, Wang Yiming, Zhu Bochen, Wang Yanfang, Mi Xingang, Huang Shan, Xu Kailin, Zhang Rui, Zhang Tingting, Liu Qiang, Yan Bin, Liu Sitong, Wang Ziteng, Zhang Junmian, Qin Qi, 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. Wu Xiaojun, deputy secretary of the Communist Party of China (CPC) Qinghai Provincial Committee and governor of Qinghai province

Mr. Wang Linhu, a member of the Standing Committee of the CPC Qinghai Provincial Committee and executive vice governor of Qinghai province

Mr. Liu Tao, vice governor of Qinghai province

Mr. Yang Zhiwen, vice governor of Qinghai province

Chairperson:

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

Date:

May 24, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding the 23rd press conference in the series "Promoting High-Quality Development." We are very pleased to have invited Mr. Wu Xiaojun, deputy secretary of the Communist Party of China (CPC) Qinghai Provincial Committee and governor of Qinghai, to brief you on unswervingly being the guardian of "China's Water Tower" and pursuing high-quality development in Qinghai, and to take your questions. Also present today are Mr. Wang Linhu, a member of the Standing Committee of the CPC Qinghai Provincial Committee and executive vice governor of Qinghai province; Mr. Liu Tao, vice governor of Qinghai province; and Mr. Yang Zhiwen, vice governor of Qinghai province. 

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

Wu Xiaojun:

Friends from the media, ladies and gentlemen, good morning. I'm very pleased to meet you all here, and introduce the situation regarding Qinghai's high-quality development. First, I would like to say a heartfelt thank you to friends from the media and people from all walks of life for your long-term care and support for our work in Qinghai. 

Known as the "Origin of the Three Major Rivers" and "China's Water Tower," Qinghai province is rich in resources and holds strategic importance. Since the 18th CPC National Congress, General Secretary Xi Jinping has twice embarked on inspection tours across the Qinghai plateau, and twice participated in the deliberations of the Qinghai delegation to the National People's Congress. He has clearly stated that "Qinghai's greatest value lies in ecology, its greatest responsibility lies in ecology and its greatest potential also lies in ecology" and stressed Qinghai's significant role in the country's security in ecological, homeland, and resources and energy spheres when implementing the new development philosophy and creating the new development pattern in the new development stage. He encouraged us to safeguard China's Water Tower and discover a distinct path for the high-quality development of Qinghai. We have borne the general secretary's words in mind and feel grateful, striving to realize the blueprint he has drawn, taking solid steps to promote ecological conservation and high-quality development, and making new progress and breaking new ground to build a new, modern Qinghai. 

Through our collective efforts, we have promoted ecological progress, cementing the ecological conservation role of China's Water Tower and ensuring ample water resources. Qinghai is one of the best examples of biodiversity. It is also a sensitive area and an important trigger point in terms of climate change for Asia, the Northern Hemisphere, and even the entire globe. Every year, 60 billion cubic meters to 90 billion cubic meters of water flows from its river sources to lower reaches. We firmly shoulder the important responsibility of safeguarding China's Water Tower, leading the nation in terms of national park construction. The Three-River-Source National Park was one of the first national parks established in China and covers the largest area. We are also moving quickly to establish the Qilian Mountain National Park and the Qinghai Lake National Park. Qinghai is China's only provincial region that is developing three national parks at the same time. Currently, the Three-River-Source area has resumed its picturesque scenery made up of thousands of lakes. The population of Tibetan antelopes, which is a topic of great concern, has grown to more than 70,000 from fewer than 20,000 in the 20th century. As the flagship species of the plateau, more than 1,200 snow leopards are being monitored. More than 600,000 birds of different species now call Qinghai Lake their home. The stock of scaleless carp in Qinghai Lake stood at over 2,500 metric tons in 2002 when we initiated protection of the species, but has now rebounded to more than 120,000 metric tons. If visitors go to Qinghai Lake now, they can watch the migration of tens of thousands of scaleless carp, filling half of the water with swimming fish, which is a real spectacle. 

Through our collective efforts, we have constructed a green and low-carbon modern industrial system, continuously strengthening growth drivers and development vitality. Qinghai has abundant resources. Its reserves of potassium salt, magnesium salt and lithium salt account for more than 80% of the national total. Our potential hydroenergy resources rank fifth nationwide. The annual total solar radiation ranks second across the country. Home to the fourth largest wind farm in China, Qinghai is reputed as one of four least polluted areas on earth. To promote high-quality development, we keep in mind the dos and don'ts, fostering new drivers for high-quality development by leveraging the unique features and advantages of resources and energy of the plateau. We focused on creating a world-class salt industry base, a national hub for clean energy industries, and an eco-tourism destination attracting international visitors, as well as exporting green, organic agricultural and animal husbandry products, making new breakthroughs and taking strides forward. In 2023, the regional GDP rose 5.3%, general public budget revenue grew 15.9%, and disposable income per capita increased 5.9%. Of the "new trio" of foreign trade products, exports of solar cells and lithium-ion batteries grew by 2 times and 3.6 times, respectively. Nowadays, Qinghai has shown a clear trend of transformation-oriented development, increasingly expanding the methods of high-quality development. 

Through our collective efforts, we have made achievements in building the province into an excellent example for promoting ethnic unity and progress in the country, making firm efforts to boost common prosperity. Qinghai is home to many ethnic groups and a diverse mix of cultures. There are currently 54 ethnic groups in the province, with ethnic minorities accounting for 49.74% of the total population, the highest proportion nationwide. Qinghai has also allocated the largest area for regional ethnic autonomy in comparison to other provinces. We have always maintained a people-centered approach, prioritizing the work in forging a strong sense of community for the Chinese nation. More than 75% of fiscal expenditure has been used for improving people's livelihoods. A large number of policies, measures and projects have been effectively implemented to benefit the public. The growth rate of per capita income of farmers and herdsmen in the province is above the national average. National demonstration zones for ethnic unity and progress have been established in all prefecture-level administrative regions and 93% of counties in Qinghai. People from different ethnic groups help one another and live harmoniously together, embracing each other like the seeds of the pomegranate, with the aim of creating better lives. 

On the new journey, we will insist on promoting high-quality development in the new era as our top priority. We will work hard to write a new chapter for Qinghai in pursuing Chinese modernization, with the aim of making contributions to celebrating the 75th anniversary of the founding of the People's Republic of China. We welcome journalists to come explore Qinghai and help make its beauty even more well known. 

That is all for my introduction. Thank you.

Shou Xiaoli:

Thank you, Mr. Wu, for your introduction. Now, the floor is open to questions. Please identify the media outlet you represent before asking your question.

Xinhua News Agency:

We know Qinghai province occupies a crucial ecological position as it contains the headwaters of the Yangtze, Yellow and Lancang rivers. Could you brief us on what the Qinghai government has done in recent years to protect the eco-environment? Thank you.

Wu Xiaojun:

Thank you for your question. I'll take this one.

Thank you for your concern about ecological and environmental protection in Qinghai. As you mentioned, Qinghai holds an important position in ecological matters. Therefore, we always prioritize ecological protection in our development efforts and protect every blade of grass and tree with heartfelt efforts to promote sustained ecological improvement. Our work focuses on the following four aspects.

First, we have highlighted institutional innovation. We have steadily advanced the construction of a national park demonstration province, adhered to the principle of maintaining the authenticity and integrity of natural ecosystems, and taken the lead in establishing a standard system for nature reserves. The Three-River-Source National Park implemented a five-tier national park management system at the provincial, city, county, township, and village levels. The Qilian Mountain National Park integrated ecological conservation with livelihood development and ethnic unity, encouraging the Party branch committees of rural villages, village committees, and local communities to jointly contribute efforts and share benefits. The Qinghai Lake National Park formed a symbiotic ecosystem featuring the plateau's distinctive "water, grass, fish, birds, and animals," making solid progress toward harmonious coexistence between humanity and nature.

Second, we have strengthened systematic management. We have coordinated the integrated protection and systematic management of mountains, waters, forests, farmlands, lakes, grass, sand, and ice, continuously improving the quality and stability of the ecosystem. The province increased its vegetation coverage ratio of grasslands, with comprehensive vegetation coverage reaching 58.12%. Statistics also showed a decline in both desertification and sandification in Qinghai. The environmental quality of air, water, and soil has continuously improved, and the proportion of days with good air quality in the province stayed above 96% throughout the year. Additionally, the cross-sectional water quality of the Yangtze, Yellow, and Lancang rivers flowing out of Qinghai remained at Level II and above.

Third, we have advanced scientific transformation by vigorously promoting eco-friendly industries and the industrialization of environmental protection. Take the "photovoltaic sheep" project as an example. We placed photovoltaic panels in desert areas, which decreased wind speeds by 50% and soil water evaporation by 30%. As a result, the previously barren land has been transformed into grassland, attracting cattle and sheep, to return. Local herders now graze their animals around the photovoltaic panels and call their sheep "photovoltaic sheep." In doing so, we have integrated ecological protection and clean energy development, increasing income for local farmers and herders.

Fourth, we have emphasized inclusive sharing. We are committed to the principles of an ecological civilization based on collaboration, participation, and common interests, and we aim to popularize it among the public. We have created public welfare posts for ecological conservators, helping 146,000 herders across the province put down their grazing whips and become conservation workers. Some of them have even become photographers thanks to their proximity to nature. Many of their photos have won awards in domestic and international competitions. Their photographic works, mainly about animals, not only showcase the local ecosystem, but also reflect their deep love for the land.

Sanjiangyuan, which means the "source of three rivers," is home to the headwaters of the Yangtze, Yellow, and Lancang rivers. As the home of Sanjiangyuan, Qinghai province has been dubbed China's "water tower." Sanjiangyuan belongs not only to Qinghai but also to China and the whole world. We will steadfastly guard China's "water tower" and ensure that lush mountains and lucid waters remain Qinghai's greatest advantages and pride. Thank you.

Southern Metropolis Daily:

Chaka Salt Lake is an iconic tourist destination in northwest China. Praised as "the mirror of the sky," it has attracted numerous tourists. In recent years, cultural and tourism departments in various regions have made efforts to promote their local tourism industries. What measures will the Qinghai government take to explore more ecotourism resources and increase the high-altitude province's popularity? Thank you.

Wu Xiaojun:

Thank you for your attention to Qinghai's ecotourism. Mr. Liu will answer your question.

Liu Tao:

Thank you for your question. Although ecotourism in Qinghai is relatively new in Qinghai, it is gaining momentum. As the Chinese saying goes, "The landscape here is beyond compare." Traveling in Qinghai has gained wide popularity in recent years, especially during the high season from May to October. We welcome all journalists here to come and experience the province's beauty.

Qinghai enjoys abundant tourist resources. Qinghai Lake is called the "sapphire of the plateau." Beautiful Chaka Salt Lake has earned the moniker "the mirror of the sky." National Highway 315 has become an internet sensation, attracting scores of travelers. The scenery there is breathtaking and worth exploring. You can find various types of natural scenery within the province, including snow-capped mountains, green meadows, herds of cows, and flocks of sheep.

Our unique natural resources lay a solid foundation for developing ecotourism in Qinghai, which is also a valuable treasure for the province. Home to Kunlun Mountain and Qilian Mountain, Qinghai is honored as the "origin of mountains" in China, inspiring a series of Chinese myths like the Kunlun Legend and the goddess Queen Mother of the West. Home to the headwaters of the Yangtze, Yellow, and Lancang rivers, Qinghai is hailed as the "source of water" in China. As Mr. Wu mentioned, 90 billion cubic meters of water flow from its river sources to lower reaches every year, bringing fresh water to the vast land across the country. Qinghai deserves its reputation as the "origin of mountains" and the "source of waters." With more than 5,000 lakes, Qinghai is also known as one of China's "provinces of a thousand lakes." Over 4,200 rivers crisscross the province, providing the best conditions for local ecotourism. It is our pride to take good care of Qinghai's fauna and flora, our responsibility to protect mountain origins and water sources, and our pursuit to make full use of our ecological advantages.

We will continue to increase our efforts in ecological conservation, build a green foundation, improve on Qinghai's beauty, always put the conservation of Qinghai's lucid waters and lush mountains first as well as strive to promote the construction of a beautiful Qinghai. We will constantly build strong ecological security shields, improve the quality of the eco-environment, and lay a solid foundation for building an international ecotourism destination. Developing ecotourism is not the only goal. Our higher pursuit is to create an international ecotourism destination.

In the future, Qinghai will cultivate a great number of world-class ecotourism resource brands. The Three-River-Source area tracing journey, the Qinghai-Xizang Plateau snow-capped mountain exploration journey and the eco-experience journey through our national parks, that everyone longs for, will become accessible to everyone.

We will leverage the high-quality ecotourism resources to highlight Qinghai’s ecological value and great beauty. We will give full play to the advantages of Qinghai's blue skies, clean lands and clear waters to establish the image of a pure land for ecotourism. We will hold major festivals and events such as the Qinghai Green Development Investment and Trade Fair and the Tour of Qinghai Lake to enhance the international penetration and influence of Qinghai's ecotourism. We will establish and improve the tourism service system to provide everyone with a safe, secure and pleasant Qinghai trip.

I, once again, would like to sincerely invite all our friends to visit Qinghai and have a look around the limpid Qinghai Lake as well as the magnificent and colorful Three-River-Source area. I also hope that you will stay in Qinghai for a while to experience the colorful ethnic customs and taste the rich and diverse delicacies.

I believe that the beautiful Qinghai will become the 'poetry and distant land' of your dreams. Here you will hear more and more beautiful and touching stories.

Thank you.

CCTV:

The governor just mentioned that Qinghai is focusing on creating "four industrial areas," which are: a world-class salt industry base, a national hub for clean energy industries, an ecotourism destination attracting international visitors as well as an exporting base for green, organic agricultural and animal husbandry products. We know that Qinghai has unique resources endowed by the plateau. Could you please give us a detailed introduction to the specific situation of the "four industrial areas"? Thank you.

Wu Xiaojun:

Thank you for your question. I will answer it.

Developing "four industrial areas" is our strategic path to promote high-quality development based on Qinghai's endowed resources and regional characteristics. Over the years, we have focused on constructing the "four industrial areas" and have made breakthroughs.

In creating a world-class salt industry base, we insist on promoting development that is orderly and eco-conscious. We have formulated a package of plans, programs and policy measures, conquered many world-class technical difficulties, formulated more than 10 national and industry standards in the salt lake field and have gradually formed five major industrial clusters for potassium, sodium, magnesium, lithium and chlorine. Last year, the output value of the salt lake industry reached more than 58 billion yuan, and the output of potash fertilizer accounted for 77% of the country's total, ensuring Qinghai's contribution to China's food supply and support for the development of new energy and new materials.

In building a national hub for clean energy industries, we have always adhered to the "five-in-one" promotion of planning, policies, bases, projects and enterprises. Last year, our clean energy installed capacity exceeded 51 million kilowatts, accounting for 93% of the total, and the new energy installed capacity exceeded 38 million kilowatts, accounting for 69% of the total, with both ranking first in the country. We have built the country's first green electricity channel, which continuously transports green electricity to 15 provinces, autonomous regions and municipalities across the country. Green electricity from Qinghai lights up Beijing Daxing International Airport and Hangzhou Asian Games venues. The second and third green electricity channels are currently in the works. At the same time, we have also built a relatively complete photovoltaic industry chain. There is a "photovoltaic street" in Nanchuan Industrial Park, Xining city, where more than ten leading photovoltaic manufacturing enterprises are gathered, forming an industrial cluster.

In terms of building an international ecotourism destination, Qinghai is endowed with rich, diverse and unique tourism resources. We are striving to build a new pattern of ecotourism development with Xining city at the center, ringed by the Qinghai Lake ecotourism loop and multiple ecotourism belts. The limpid Qinghai Lake, the Chaka Salt Lake, which is known as the "Mirror of the Sky," the colorful Emerald Lake, the quality pastures at the foot of the Qilian Mountains and the cole flower fields in Menyuan Hui autonomous county are all well-known both home and abroad. The brand of the beautiful Qinghai is getting more and more renowned as the "origin of mountains" and the "source of waters."

In terms of creating an exporting base for green, organic agricultural and animal husbandry products, we give full play to the geographical and ecological advantages of the "pollution-free zone" of the Qinghai-Xizang Plateau as well as insist on improving quality, stabilizing quantity, shoring up weak links in the industrial and supply chains, and expanding export. The monitored area of organic grasslands in Qinghai has surpassed 150 million mu (10 million hectares). More than 8 million cattle and sheep have achieved origin tracing and the output of salmon and trout has accounted for 40% of the country's total production. Qinghai has become China's largest production base for organic livestock products, organic goji berries and cold water fish. Today, Qinghai's beef, mutton, organic goji berries, quinoa and other agricultural and animal husbandry products are popular among domestic and foreign consumers for their excellent quality.

On our new journey, we will remain committed to the goal of building the "four industrial areas," adhere to high-end, green and intelligent development and embark on a path of high-quality development with Qinghai characteristics. We are full of confidence. Thank you!

Economic Daily:

My question is about the economy. Promoting the development of the private economy is an important task in deepening reforms in key areas. What specific measures does Qinghai have in promoting the development of the private sector? Thank you.

Wang Linhu:

I will answer your question. As you know, Qinghai is located in the western part of the country. Due to factors such as nature, geography, history, transportation, information and population, the economic volume and scale of the private economy in Qinghai are not as large as those in the coastal areas of China's mainland. However, we should follow the principle of "an act of kindness, no matter how trivial, is worth performing." Over the years, Qinghai province has placed great importance on the development of the private sector and has unswervingly implemented a series of policies and measures issued by the CPC Central Committee and the State Council on spurring the growth of the private sector to promote the high-quality development of this sector.

Since the beginning of the 14th Five-Year Plan period (2021-2025), the private sector entities have been growing at an annual average rate of 6.7%, and the total number of such entities has now reached 538,000. Based on Qinghai's resource endowment and regional characteristics, we have, on one hand, built and formed characteristic industries such as eco-environment protection, salt lake chemical engineering, clean energy, agricultural and livestock products, and cultural tourism. On the other hand, we have fostered and developed local specialty products and brands such as hand-pulled noodles, Qinghai embroidery, yaks, Tibetan sheep, Chinese wolfberries and highland barley. The private economy contributes 40% of Qinghai's GDP and 80% of urban employment in the province, making it a significant force driving the construction of a modern new Qinghai.

In practice, as just mentioned by Mr. Wu, while we are fulfilling our responsibilities as guardians of China's "water tower" and protecting the ecological security of the Qinghai-Tibet Plateau, we are also striving to explore a path of private economic development with Qinghai's local characteristics that is green, low-carbon and circular. First, in terms of policy guarantees, we have introduced multiple policies and measures related to optimizing the business environment, strengthening the private economy and promoting the development of micro, small and medium-sized enterprises. Second, in terms of environmental optimization, we have deepened the "one-stop" service reform by efficiently handling each matter, focusing on improving the core indicators of the business environment, slashing items subject to approval by 70% and streamlining procedures by 60%. Third, in terms of improving efficiency, we have launched the "Spring Breeze Action to Assist and Warm Enterprises," providing one-on-one assistance to 13,000 enterprises. We have developed the mobile app Qingsongban, enabling enterprises to handle matters instantly with just a mobile phone, which may previously require multiple trips and hundreds of kilometers of travel. Fourth, in terms of financial services, we have established a Qinghai province micro and small enterprises credit financing service platform and customized credit models with Qinghai characteristics such as "hand-pulled noodle loan," "caterpillar fungus loan" and "Chinese wolfberry loan." Since the establishment of the platform, it has provided loans totaling 14.7 billion yuan to 12,400 micro and small enterprises, saving nearly 40 million yuan in financing costs for enterprises.

Dear journalists, although Qinghai is at a high altitude, our passion for doing business and starting new ventures is even higher. Although Qinghai is in a distant place, it is also linked and connected to the world. We warmly welcome all types of investors, especially private entrepreneurs, to visit Qinghai for exploring investment opportunities or purchasing properties. We will strive to create a better market-oriented, law-based and world-class business environment, providing comprehensive services and guarantees for the high-quality development of private enterprises. Thank you.

CNR:

You just mentioned that Qinghai's unique natural conditions and ecological environment are a precious gift from nature, which has led to the development of various characteristic industries. Could you please elaborate on the evolution of Qinghai's local specialty industries over the years, their impact on lifting people out of poverty and towards prosperity as well as any future plans? Thank you.

Wu Xiaojun:

Thank you for your question. I would like to ask Mr. Yang to answer this question.

Yang Zhiwen:

Thank you for your question as well as for your attention and support towards the development of characteristic industries in Qinghai and our efforts to increase people's incomes. Over the years, Qinghai has capitalized on its resource endowment and comparative advantages, developing and expanding plateau-specific industries according to local conditions. This has helped nearly 540,000 people of all ethnic groups in the province to escape poverty and increase their incomes. The per capita disposable income of farmers has more than doubled compared to ten years ago. We have also carefully identified the channels for increasing incomes, mainly in the following four aspects:

Firstly, agriculture and animal husbandry have contributed to a steady increase in incomes. We have accelerated the development of Qinghai as a green and organic agricultural and livestock product output base. We have meticulously cultivated characteristic industries such as yaks, Tibetan sheep, cold-water fish, highland barley and Qaidam Chinese wolfberries. Over the past three years, the output value of agricultural and livestock products to other regions has exceeded 30 billion yuan. Last year alone, the total income from picking Chinese wolfberries reached 589 million yuan, with a per capita income of 8,000 yuan, significantly aiding in an increase to incomes.

Second, we have capitalized on the salt lake and clean energy industries to boost incomes. Thanks to the vigorous development in recent years of the salt lake industry and clean energy industries, such as solar and wind power, 283,000 people have been lifted out of poverty, gaining a stable income through various means such as employment, land transfer and participation in management. We have explored a new model of "photovoltaic plus agriculture and animal husbandry." As Mr. Wu just introduced, we use photovoltaic panels to generate electricity and conduct farming and grazing underneath these panels, achieving a "win-win" for industrial development and income increase.

Third, we have integrated into the eco-friendly industry in order to increase incomes. By leveraging our richly endowed green ecology, we are developing new income-generating business formats such as forest health resort, under-forest economy, rural tourism and grassland nomad tourism. As more people seek to experience the beauty of the green ecology, locals have begun to reap the benefits from the ecological resources and the tourism industry, leading to an increase in income right at their doorstep.

Fourth, we have driven income growth by building characteristic industry brands. Through the cultivation and promotion of the Qinghai hand-pulled noodle brands, nearly 200,000 people of all ethnic groups have opened almost 30,000 Qinghai hand-pulled noodle restaurants in 337 cities both domestically and internationally, with a per capita average annual income of more than 30,000 yuan. Our Qinghai embroidery industry has generated fresh vitality, with more than 300,000 embroiderers using their skilled "needlework" to "stitch" together happy new lives.

Moving forward, we will concentrate on three areas: First, we will effectively implement preferential policies. Policies such as fiscal rewards, tax reductions and exemptions, refunding unemployment insurance premiums are favorably tilted towards characteristic industries. Over 60% of the funding from east-west cooperation is allocated for the development of characteristic industries. We aim to rapidly and directly disseminate the dividends of these policies and maximize the synergy of different policies. Second, we're expanding channels for increasing income. Each year, characteristic industries provide jobs for more than 200,000 people who have been lifted out of poverty. We support them in developing characteristic industries that suit their realities. We are improving and implementing a cooperative economic model driven by leading enterprises and stabilizing income increases through various methods, such as shareholding dividends and land transfer. Lastly, we are focusing on building labor brands well. We effectively use various financial products unique to Qinghai, and promote the upgrading of industries and labor brands such as Qinghai hand-pulled noodles, Qinghai caterpillar fungus, Qinghai embroidery and Qaidam Chinese wolfberries picking. We aim to cultivate a new batch of labor brands in areas like plateau ecology, clean energy and modern service industries, continuously expanding brand influence and awareness as well as enhancing the income through the power of branding.

That's all for my introduction. Thank you!

Qinghai Radio and Television Station:

We understand that Beijing, Tianjin, Shanghai, Shandong, Zhejiang and Jiangsu, as well as relevant national departments, ministries and central enterprises, have established assistance and cooperation relationships with Qinghai. Could you introduce the role of the aiding cadres in Qinghai's economic and social development? Thank you.

Wang Linhu:

First, thank you for your concern and attention to the paired assistance work in Qinghai. It should be noted that the economic and social development of Qinghai in recent years has achieved relatively good results, which cannot be separated from the strong support and help of the assisting provinces, cities, and cadres aiding Qinghai.

Since the CPC Central Committee made the strategic deployment of paired assistance in 2010, five batches of over 3,800 cadres and technical professionals from Beijing, Shanghai, Tianjin, Shandong, Zhejiang, Jiangsu, and various central state institutions and central enterprises have participated in the assistance work in Qinghai. Over the past decade, these dedicated individuals have regarded Qinghai as their hometown and the local people as their families. Focusing on the region's needs and the assisting parties' capabilities, they have implemented over 3,000 assistance projects in succession. They have helped farmers and herders improve housing conditions, enhance teaching quality, allocate medical resources, expand employment channels, and increase economic income. It can be said that the paired assistance work has made very important contributions to Qinghai's fight against poverty, the simultaneous building of a moderately prosperous society with the rest of the country, promoting common prosperity, and embarking on a new journey of Chinese-style modernization.

During their work, the vast number of aid cadres demonstrated through their actions that a lack of oxygen does not mean a lack of spirit. They showed resilience in the face of tough conditions and maintained moral standards that were even higher than the altitude of the plateau. With their wholehearted dedication, they have written many touching stories of their efforts in Qinghai. Among them are those who, by imparting medical skills, left behind a "Capital's Famous Doctors" medical team in Yushu that cannot be taken away; the "Jiangsu Mamba" who completed over 2,000 eye surgeries on the plateau; and the "Renowned Zhejiang Teachers" couple who helped over 1,000 herders' children leave the mountains. There is also the "Tianjin Talent," who came from the banks of the Haihe River to the Yellow River to create the beautiful Deji village; the "Yimeng Heroines," who with their craftsmanship, built bridges and roads to facilitate travel for herders; and the "Shanghai Girl" who founded a youth orchestra in the Maqin grasslands of Golog Tibetan Autonomous Prefecture at an altitude of 4,200 meters. She also established a folk music orchestra named after the local Anme Machin Snow Mountain, helping many herders' children realize their musical dreams. The cadres aiding Qinghai have become an important force in Qinghai's economic and social development and in promoting exchanges and integration among local ethnic groups, thereby enhancing national unity. The people of all ethnic groups on the plateau have personally felt the benefits of the Party's policies for aiding Qinghai and the warmth of the Chinese nation's big family.

Taking this opportunity, on behalf of the people of all ethnic groups in Qinghai, I express our gratitude to General Secretary Xi Jinping and the CPC Central Committee for their kind concern for Qinghai. I also want to thank the assisting provinces and cities for their full support, and the cadres aiding Qinghai for their selfless dedication. Thank you.

National Business Daily:

In recent years, Qinghai's green computing industry has developed rapidly. What unique advantages does Qinghai have for developing the green computing industry? How can these advantages be transformed into drivers for high-quality development? Thank you.

Wu Xiaojun:

I'll answer this question. First, thank you for your concern regarding the development of Qinghai's green computing industry. Currently, the entire province is making every effort to promote the development of this industry, focusing on three main aspects:

First, we have "favorable timing." As we all know, the development of artificial intelligence (AI) is progressing very rapidly. The key to AI is computing power, which relies on energy. The future of this energy is clean energy. Qinghai's biggest advantage is its abundant clean energy. The province's electricity prices have been maintained at the lowest in the country for a long time. We are seizing the favorable opportunity presented by the country's "east data, west computing" project, focusing on turning "green electricity" into "green computing," "cables" into "optical cables," and "watts" into "bits," striving to cultivate new development momentum and open up new development tracks.

Second, we have "geographic advantages." Qinghai has a dry, cool, and clean climate, with a dryness index of 2.38 and an average temperature of 3.4 degrees Celsius. The province's data centers can rely on natural cooling for 314 days a year, reducing cooling electricity consumption by 40% compared to the national average. It is estimated that investing in computing power in Qinghai will reduce investment costs by about 20%, lower operating costs by 30%, and shorten the investment return period by two years. Simply speaking, Qinghai is a "great natural harbor" for the development of the green computing industry.

Third, we have "favorable human resources." We have built a green computing industry base, which has received strong support from various national departments, ministries, provinces, cities, and leading enterprises. Now, a large number of enterprises and data are gathered in Qinghai. Recently, we held industry promotion conferences in Beijing, Shenzhen and Nanjing, resulting in the signing and implementation of numerous projects. Recently, we have also introduced local standards for green computing and a package of policies to support the development of the green computing industry. Additionally, we are promoting the coordinated development of green computing and green electricity, creating an increasingly favorable environment for the green computing industry in Qinghai.

Taking this opportunity, I sincerely invite friends from all walks of life to visit Qinghai and join us in advancing the development of the green computing industry in Qinghai.

That's all from me. Thanks!

China Daily:

As Mr. Wu just introduced, Qinghai is a place inhabited by multiple ethnic groups. What has Qinghai done to promote ethnic unity and progress as well as economic and social development in ethnic regions? And what are the characteristics of these efforts? Thank you.

Yang Zhiwen:

Thank you for your concern and attention to Qinghai's ethnic affairs. As Mr. Wu Xiaojun just introduced some information, I'd like to introduce three characteristics of Qinghai's ethnic work here.

First, the sense of belonging for the Chinese nation is more unified. Guided by core socialist values, we have firmly grasped the main line of forging a strong sense of community for the Chinese nation. By riding on horseback to each household and in down-to-earth ways that are easily understood by the local community, we clearly explain the Party's people-benefiting policies and address issues of concern, gaining the people's support for the Party's voice. We adhere to govern ethnic affairs in accordance with the law and safeguard national unity. Six autonomous prefectures of Qinghai all released regulations for promoting ethnic unity and progress. We have taken the lead nationwide in establishing a series of innovative measures, including four-level party committee secretaries to focus on the creation of ethnic unity and progress as well as the dynamic management of demonstration units. We have consolidated a strong sense of community for the Chinese nation into various regions and industries, permeating the hearts of grassroots communities and bringing all Chinese people to rally more closely around the Party.

Second, extensive exchanges and interactions of different ethnic groups have become more intimate. We have innovatively created 388 communities called "pomegranate seed homes" for people from all ethnic groups to live, study, work and enjoy themselves together as well as jointly contribute to its development. All ethnic groups are learning from each other, like brothers and sisters who work and live together and help each other out, cooperatively painting a beautiful picture of harmony and integration. After the "12.18" Jishishan earthquake last year, people from all ethnic groups, including Han, Tibetan, Hui, Salar and Tu, helped each other and overcame the difficulties together. Many of our compatriots came from far away to cook for the disaster victims for free. When bowls of steaming Qinghai noodles were delivered to the disaster-stricken people, many people were moved to tears. In times of crisis, the Chinese nation demonstrated its strong cohesion and solidarity as one family.

Third, different ethnic groups are more enthusiastic about participating in modernization construction. We seize the opportunities of the times, rely on resource endowments of ethnic minority areas, find the right path for development, focus on key industries and constantly stimulate internal growth momentum. The GDP of our six autonomous prefectures has doubled compared to 2012. We do our best to ensure employment, education, medical care, elderly care and other people's livelihood issues, ensuring that no ethnic group is left behind in the new journey of modernization. For example, people of all ethnic groups in Guoluozanggongma Village of Haibei Tibetan Autonomous Prefecture keep in mind the earnest instructions of General Secretary Xi Jinping during his inspection in 2021, and use the power of national unity to unlock the code to wealth. Industries such as organic animal husbandry and characteristic tourism have actually increased people's income, and everyone's faces has a happy smile. Following the instructions and guidance of the Party as well as feeling grateful for the Party have become the common aspiration of all ethnic groups in Qinghai.

Next, we will continue to build a national model province for ethnic unity and progress, adhering to tradition while fostering innovation. With unwavering effort, we will steadily guide ethnic regions towards socialist modernization. Thank you.

Shou Xiaoli:

Two last questions, please.

Jinan Times APP:

We have noticed that Qinghai is currently advancing the development of building the province into a model of the nature reserve system centering on national parks, as Mr. Wu mentioned just now. My question is: what are the specific changes and impacts on the local ecology and residents' lives? Thank you.

Liu Tao:

Thank you for your question. The construction of national parks is a topic of concern for the whole of society. Qinghai started its national park construction relatively early nationwide, with a pilot project starting in 2015, as Mr. Wu just mentioned. Qinghai is the only province in China with three national parks simultaneously under construction. The overall work is progressing smoothly. The Three-River-Source National Park, which is a place that everyone longs for, covering a total area of 190,700 square km, is the largest national park in China. Globally speaking, it is also a national park with a relatively large land area. Qinghai has three national parks: the Three-River-Source National Park, which has been officially established and is now entering a new stage of high-quality construction, the Qilian Mountains National Park, which has made comprehensive preparations for its establishment and the pilot work has been basically completed, and the Qinghai Lake National Park, which is under comprehensive construction.

In general, the construction of a demonstration province for the nature reserve system centering on national parks is a major initiative of Qinghai, which demonstrates the awareness and responsibility of the Qinghai Provincial Party Committee and the Provincial Government to protect "the water tower of China" and build a solid national ecological security shield. National parks have the highest type of protection and conservation intensity within our country's system of natural protected areas.

After years of unremitting efforts, the ecological environment of magnificent Qinghai is more beautiful. The wild animals living here are more "comfortable," as we can see from the scene of four snow leopards in the same frame. During China's two sessions two years ago, a representative from the Qinghai delegation showed a photo to General Secretary Xi Jinping. This photo, which can be found online, features four snow leopards together. This is rare to see, which shows that our ecological environment is getting better and better. Take a trip to Qinghai and you'll see wild animals such as leopard cats, wild yaks, Tibetan antelopes and Przewalski's gazelles leisurely roaming around. Biodiversity is on full display in Qinghai. For example, the bharal is a very timid animal. Now, it no longer hides from people when eating grass in the mountains. You go your way, and I eat my grass. The bharal live there very leisurely and comfortably. These beautiful and harmonious scenes are the best reward for Qinghai's efforts to strengthen ecological protection, and are also evidence of the improving ecological environment on the Qinghai-Tibet Plateau.

Looking ahead, through a series of ecological protection measures and restoration projects, we aim to make Qinghai's skies bluer, its land greener, and its waters clearer. This will ensure that the construction of Qinghai's nature reserves system progresses steadily along the path of high-quality development.

The reporter just asked about the impact on local residents. Generally speaking, it has been positive. The harmonious coexistence of humans and nature is gradually taking shape in Qinghai. For instance, in the Three-River-Source National Park, we have implemented a "one household, one position" policy, training 17,200 ecological stewards. This initiative not only protects the environment but also increases local herders' income. During a field survey, I met a herder who proudly showed me his steward's armband with a national identification number, saying, "I work for the country." I could sense his deep pride and honor at that moment. It became clear to me that the vast majority of Qinghai's herders have transformed from being "users" of the ecosystem to "protectors" and from "consumers" to "producers" of the ecosystem.

Of course, with the increase in wildlife populations, conflicts between humans and animals, such as competition for grazing land between wild and domestic animals, do exist. I have two things to say about this. First, in Qinghai, herders' awareness of ecological protection is growing. They feel genuine joy in seeing the increasing numbers of Tibetan antelopes, wild yaks, Przewalski's gazelles, and Tibetan wild asses. It must be said that Qinghai's herders have made significant concessions for biodiversity protection, and they deserve our respect and praise. Second, we will continue to control the carrying capacity of the grasslands through ecological restoration and scientific management, making grazing more sustainable. We will also maximize compensation for the herders through government subsidies and insurance payouts.

I believe that through our efforts, we can surely find the optimal balance between humans and nature, allowing for harmonious coexistence. Qinghai is vast enough to accommodate countless living beings. Thank you.

Shou Xiaoli:

One last question.

CRNTT:

We understand that Qinghai is building the world-class Lenghu Astronomical Observation Base. What advantages does Lenghu have in becoming a world-class astronomical observation base? What is the current status of the base's construction? Additionally, what can we expect once the base is completed? Thank you.

Wu Xiaojun:

I'll answer this question. Lenghu town in Mangya city, Haixi prefecture, in Qinghai's Qaidam Basin, is the most Mars-like place on Earth. There is a mountain there called Saishiteng Mountain, which stands over 4,200 meters high. Scientists say this area is cool, dry, and clean year-round, with no light pollution. It enjoys clear nights 70% of the time, providing over 300 days annually suitable for astronomical observation. This makes it the best location for astronomical observation in the Eastern Hemisphere. Traditionally, the best astronomical observation sites have been in the Western Hemisphere. The establishment of Lenghu town fills this gap, creating a comprehensive global network for time-domain and spatial-domain astronomical observations.

Currently, the Lenghu Astronomical Observation Base has attracted over 10 research institutions and universities, including the National Astronomical Observatories, Purple Mountain Observatory, Tsinghua University, Peking University, and the University of Science and Technology of China, gathering scientific teams and large scientific facilities. Currently, 43 telescopes of various types have been introduced, including the well-known Micius Survey Telescope and three other telescopes, which have officially begun scientific observations. They have discovered over 200 main-belt asteroids and four near-Earth asteroids, achieving groundbreaking scientific results. Additionally, several large-diameter telescopes are being introduced and are currently under construction.

Regarding expectations, we believe the Lenghu Astronomical Observation Base will become an important international astronomical observation site and a significant platform for scientific exchange and cooperation between China and other countries. Furthermore, it will become a must-visit destination for astronomy enthusiasts and tourists. Moving forward, we will maintain a global perspective, encourage open cooperation, and adopt a future-oriented approach. Our goals include building the astronomical town, sharing compelling science stories, and innovating industry models. By promoting the integration of astronomical observation, ecological tourism, and green computing power, we aim to make Lenghu town a world-class astronomical observation base and an international ecological tourism destination.

Here, I would like to invite our media friends and people from all over the country to visit Lenghu and observe the brightest and most beautiful stars in the night sky. Thank you!

Shou Xiaoli:

Thank you, Governor Wu Xiaojun, and thank you to all the speakers and reporters for participating. This concludes today's press conference.

Translated and edited by Liu Sitong, Huang Shan, Lin Liyao, Zhou Jing, Yan Bin, Li Xiao, Zhang Rui, Wang Yanfang, Yan Xiaoqing, Li Huiru, Wang Mengru, Wang Yiming, Xiang Bin, Yuan Fang, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers:

Mr. Yan Jinhai, deputy secretary of the Communist Party of China Xizang Autonomous Regional Committee and chairman of Xizang Autonomous Region

Mr. Xu Zhitao, vice chairman of Xizang Autonomous Region

Mr. Wang Niandong, secretary of Party Leadership Group and deputy director of the Development and Reform Commission of Xizang Autonomous Region

Mr. Wang Xiaodong, director of the Department of Ecology and Environment of Xizang Autonomous Region

Chairperson:

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

Date:

May 23, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 22nd press conference in the series "Promoting High-Quality Development." Today, we are very glad to be joined by Mr. Yan Jinhai, deputy secretary of the Communist Party of China (CPC) Xizang Autonomous Regional Committee and chairman of Xizang Autonomous Region. Mr. Yan will brief you on promoting long-term stability and high-quality development in Xizang in the new era, and then take your questions. Also present today are Mr. Xu Zhitao, vice chairman of Xizang Autonomous Region; Mr. Wang Niandong, secretary of Party Leadership Group and deputy director of the Development and Reform Commission of Xizang Autonomous Region; and Mr. Wang Xiaodong, director of the Department of Ecology and Environment of Xizang Autonomous Region.

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

Yan Jinhai:

Ladies and gentlemen, friends from the media, good afternoon. It is my pleasure to meet with you today on May 23. On this day 73 years ago, the "17-Article Agreement" was signed in Beijing, declaring the peaceful liberation of Xizang. The snow-covered plateau has since been embracing promising prospects and a new life. On such a special day, it is my honor to share with you the development stories of China's Xizang. Here, on behalf of the CPC Xizang Autonomous Regional Committee and the government of Xizang Autonomous Region, I would like to express my deep appreciation to people from all walks of life who have consistently taken interest in and supported Xizang's development.

General Secretary Xi Jinping attaches great importance to the work related to Xizang and deeply cares about people of all ethnic groups in the region. He has made three inspection tours to Xizang and also chaired two central symposiums on work related to the region, charting the course for its development and establishing CPC policies on governance of Xizang in the new era. Always keeping in mind General Secretary Xi's keen expectations, we have focused on maintaining stability, promoting development, improving the eco-environment, and strengthening border defense in Xizang. Moreover, we have also been dedicated to developing model communities of ethnic unity and progress in Xizang, and building it into a pioneering area for high-quality development of the plateau economy, a model in advancing eco-civilization, as well as a demonstration region for safeguarding, developing and bringing prosperity to border areas. Through these efforts, we have significantly enhanced the region's long-lasting security, stability and high-quality development. Since the beginning of the 14th Five-Year Plan period (2021-2025), Xizang's GDP has grown from 190 billion yuan to 240 billion yuan in 2023, with its per capita GDP rising from 52,300 yuan to 60,000 yuan. The growth rate of per capita disposable income in the region has consistently ranked among the highest nationwide for years. As a result, Xizang has been following a new path of high-quality development of the plateau economy, achieving specific accomplishments in the following areas:

First, with a focus on forging a strong sense of community for the Chinese nation, we have been pooling strength for high-quality development. Centered on safeguarding national unity and enhancing ethnic solidarity, Xizang has led the country in introducing regulations and plans for establishing model communities of ethnic unity and progress. Currently, the creation of these communities has been comprehensively implemented across the autonomous region, as well as in its prefecture-level cities, counties, townships and villages. People of all ethnic groups have engaged in extensive interaction, exchange and integration, jointly safeguarding the sacred homeland and building a happy home. The people's sense of security and satisfaction remain over 99%. Barkhor Street in Lhasa, which General Secretary Xi Jinping visited in 2021, boasts a history of over 1,300 years. In over 100 residential compounds, people of more than 20 ethnic groups including Tibetan, Han, Hui and Monba live alongside one another, studying, working and enjoying life together. Just like "tea and salt," they are as close as family members, living together in harmony.

The stage play "Barkhor's Northern Courtyard," inspired by the stories of ethnic unity that happened on Barkhor Street in Lhasa, narrates heartwarming stories of individuals from different ethnic groups learning from and helping each other, living together as one family. In addition, as time progresses, individuals who contribute to fostering ethnic unity in this snow-covered plateau region, often revered as gesang flowers by the people of Xizang, have also traveled beyond the geographical barriers and taken root across the country. Not long ago, a Party and government delegation conducted an exchange tour in Changsha, central China's Hunan province. During a symposium with representatives of college students from Xizang who work in Hunan, we leant about Tenzin Drolkar, a Tibetan college graduate, who works as a primary-level staff member at a township government in Hunan's Zhuzhou. Not only did she learn the local dialect, but she also married a local man, with their child becoming an embodiment of ethnic unity.

Yan Jinhai:

Second, following region-specific strategies with clear priorities, we have been developing our distinct advantages in high-quality development. In accordance with our available resources and development conditions, we have selectively fostered the growth of new industries, new models and new growth drivers. We have continuously bolstered our unique and competitive sectors such as cultural tourism, specialized agriculture and animal husbandry, advanced digital industries and traditional Tibetan medicine. We have also expedited efforts to develop emerging industries such as plateau-appropriate light industry, in a bid to enhance our internal growth momentum. In terms of cultural tourism, as you are all aware, Xizang, with its unique natural landscape and ethnic culture, is a popular tourism destination for people around the world. In 2023, Xizang received 55.17 million visits by tourists from home and abroad, with total tourism revenue reaching 65.1 billion yuan, up 83.7% and 60%, respectively, both setting new records. Specifically, the number of foreign visitors amounted to nearly 20,000. In the first quarter of this year, the figure exceeded 4,300. In this sense, the tourism sector has truly become an industry that benefits local people. On May 15, I made an inspection tour to Cuogao village, Cuogao township in Gongbo'gyamda county in the city of Nyingchi. I learnt that all 438 villagers of the 108 households there used to rely on natural resources from the mountains and forests for their livelihoods, mostly by logging. Nowadays, after being relocated from inhospitable areas, every household now lives in a two-story building, with cement roads leading right up to their doorsteps. Most of the villagers run homestays, and the forests have been transformed into scenic spots. In 2023, the village's tourism revenue alone reached 2.36 million yuan, and the average per capita income amounted to 27,000 yuan, exceeding the average level of Xizang's rural residents by 7,000 yuan. The total income of one family in the village consisting of four family members reached 155,000 yuan last year, with 80,000 yuan coming solely from their homestay earnings.

In terms of distinctive agriculture and animal husbandry, Xizang saw a 14.9% increase in added value of the primary industry last year, with grain production consistently exceeding 1 million tons for nine consecutive years. Our efforts have focused on scientific breeding. Although yaks, known as the "boats of the plateau," are valuable, traditional breeding methods are time-consuming, and valuable byproducts such as yak bones and blood are often thrown away as useless things. Through selective breeding and efficient farming techniques at the Gesangtang Modern Agriculture and Animal Husbandry Industry Demonstration Park in Lhunzhub county, Lhasa, the yak breeding cycle has been shortened from eight to 12 years to just three to four years. This has significantly improved economic efficiency, increasing breeding profits by over 50% compared to traditional methods. Additionally, to turn yak bones into valuable resources, Lhasa has introduced a private enterprise producing yak bone ceramics. The highest-value ceramic artwork sells for up to 2 million yuan per piece, and the export price of the best ceramic thangka artwork is as high as $300,000. Last year, this enterprise achieved nearly 20 million yuan in sales, with an expected breakthrough of over 100 million yuan this year. Xizang's highland barley is rich in beta-glucan and gamma-aminobutyric acid (GABA), both beneficial for the human body. Beta-glucan is known for its blood sugar-lowering effects, while GABA is recognized for its antioxidant properties and ability to prevent the development of atherosclerosis. In the past, despite living in cold, high-altitude areas, the people in Xizang maintained robust health due to barley and tea, even though fresh vegetables and fruits were scarce. In October last year, the Chinese team won the iba.UIBC.CUP of Bakers 2023 in Germany using highland barley flour from Shigatse. Currently, Xizang has developed over 70 varieties of superior barley seeds. The most widely planted varieties are Zangqing 2000 and Zangqing 3000. Last year, the total barley output reached 840,000 tons, a 6.1% increase from the end of the 13th Five-Year Plan period (2016-2020), enough to feed 310,000 more people. Xizang consumes 700,000 tons of highland barley annually, leaving a surplus of 140,000 tons. The remaining volume and 700,000 tons of barley stored by individuals are enough to meet the region's consumption needs for over a year. At present, we are extending the industrial chain with processed barley products such as barley wine, biscuits, noodles, and meal replacement powders, which are sold domestically and exported to countries and regions including Nepal and Canada.

In terms of the high-tech digital industry, Xizang's unique climate features of low sulfur, low temperature, low pressure, and low humidity, along with low-cost clean energy, provide unparalleled advantages for developing high-tech digital industries. Currently, Xizang hosts a national green data center, aiming to create the world's highest-altitude green big data center driven by innovation in computing power. With a planned investment of 11.8 billion yuan, it can accommodate 70,000 racks. Last year, the digital economy in Xizang exceeded 25 billion yuan, a 19% increase year on year.

Regarding Xizang's medicine industry, sales of the most popular traditional medicine, Seventy-flavor Pearl Pills, reached 147 million yuan last year.

In terms of the light industry, Xizang's independently developed Snow Lotus and Gesang Flower branded cookware products suitable for plateau areas, including pressure soup pots and frying pans, have obtained 18 national patents and sold 840,000 pieces over the past two years. Due to the high-altitude and low-oxygen environment in Xizang, in cities like Lhasa, water boils at 82 degrees Celsius, which is insufficient for adequately cooking dumplings or noodles. By combining our country's advanced technologies with local market demand, we have developed pressure cookers suitable for the plateau environment, fundamentally solving the problem of insufficient boiling and undercooking. In Xizang, it is common for us to drink hot water in big gulps, and this habit persists even when we are in Beijing, sometimes leading to mouth burns.

Yan Jinhai:

Third, we adhere to a people-centered development philosophy, demonstrating our commitment to high-quality development. We continue to implement 10 key livelihood projects, effectively carrying out initiatives such as school heating supply projects, oxygen supply in border counties and towns, heating supply in public hospitals in counties and districts, and addressing seasonal water shortages in high-altitude agricultural and pastoral areas. We vigorously improve infrastructure such as water, electricity, roads, communication, and housing, leading to a profound transformation in the lives of people of all ethnic groups, manifested by the transition from water buckets to tap water, from oil lamps to electric lights, from dirt roads to paved roads, and from felt tents to tile-roofed houses. Now, all primary and secondary schools in Xizang have heating supply.

We have solved the water shortage problem. In the past, many high-altitude areas in Xizang faced seasonal water shortages, especially in places with cold winter climates where tap water was unavailable. The reason was that construction engineering in high-altitude areas is carried out in summer when the ground-water level is high. During well drilling in summer, construction workers often assumed they had reached the bottom when they saw water gush out. However, the water table would drop in winter, causing tap water to stop flowing. To tackle this problem, we have stepped up infrastructure efforts, mainly through burying pipelines deep and installing electric water pipe heating wires. With a simple activation, tap water can now be heated and made available within 15 minutes.

We have tackled electricity shortages. Ten years ago, the main power grid in Xizang only covered 40 counties, supplying electricity to less than half of the population. By the end of 2020, the last prefecture-level administrative area in the region, Ngari Prefecture, was connected to the main power grid, achieving full coverage in all 74 counties and districts. 

We have solved transportation problems. Currently, the region's highway mileage exceeds 120,000 kilometers, with all counties, townships and administrative villages having access to asphalt or paved roads. Its expressway mileage reaches 1,105 kilometers. All the seven prefecture-level cities, except Qamdo city and Ngari prefecture at the eastern and western ends, have now access to expressways. The Fuxing high-speed trains have also reached the Qinghai-Xizang Plateau. Previously, it took about a week to travel by car from Lhasa city to Nyingchi city, less than 500 kilometers apart. After the opening of the expressway in 2019 and the railway in 2021, it now takes only three and a half hours to travel between them. People can go to Nyingchi on some errand in the morning and return to Lhasa in the afternoon.

We have resolved difficulties in communication. In 2012, only 4% of our administrative villages had access to optical fiber broadband, and smartphones were then a rare luxury for many people. Nowadays, optical fiber broadband and 4G signals have achieved full coverage in all administrative villages of the region. In rural and pastoral areas, as well as in the countryside, mobile phones have become tools that bring wealth. For example, Ajiawangmu, a self-media anchor from Nyingchi city, promotes and sells chili peppers from Nangxian county via livestreams. Last year, the chili peppers generated an output of 15.5 million yuan, benefiting 1,856 households and 5,565 individuals, with an average increase in income of over 5,800 yuan per household.

We have eased housing difficulties. Currently, the per capita floor space of rural residents in the region reaches 41.32 square meters, an increase of 11.74 square meters compared to 2012. For example, in Caiqutang village, Yangbajing town, Damxung county, situated at an altitude of 4,300 meters, villagers used to live in earthen or stone houses. However, now they have all been replaced with two-story brick houses, and each household has access to hot spring water in their courtyard, since Yangbajing has abundant geothermal resources. The Tibetan Medicine Hospital of Xizang Autonomous Region has also established a research base for the prevention and treatment of rheumatic diseases in the village, where villagers can enjoy free hot spring baths and acupuncture treatments.

We have worked out ways to help people get rich. In 2023, the per capita disposable income of rural residents in the region reached nearly 20,000 yuan, an increase of over 5,300 yuan compared to the end of the 13th Five-Year Plan period (2016-2020), representing a growth of 36.5%. For example, there is Tuiwa village, located in Nagarze county, Shannan city, at the northern foot of the Himalayas. This village, situated at an altitude of 5,070 meters, is known as the closest village to the sky. During the poverty alleviation campaign, all its 152 villagers from 40 households moved into houses built by the government. The first college student of the village, Dowang, returned home after graduation and opened a guesthouse called "5070." Through specialized farming and rural tourism, villagers here achieved a per capita income of over 20,000 yuan last year. This newfound life is beyond the wildest dreams of the villagers who previously relied on traditional herding.

Yan Jinhai:

Fourth, we prioritize ecological conservation and highlight it as the defining feature of high-quality development. We resolutely implement the important instructions of General Secretary Xi Jinping, who emphasized that "protecting the ecological environment of the Qinghai-Xizang Plateau is the greatest contribution to the survival and development of the Chinese nation" and urged us to "transform the Qinghai-Xizang Plateau into a highland of ecological conservation at the national and international levels." Since 2015, the Party Committee and the government of Xizang autonomous region have never approved any energy-intensive, high-emission, or low-level projects. As a result, the living beings, vegetation, and vast mountains and waters on the Qinghai-Xizang Plateau have received the most effective protection. Currently, the protected natural areas in Xizang autonomous region account for 36% of its total land area, while the areas protected within "ecological conservation red lines" cover over 50% of the region. Xizang features approximately 16.5% of the total water resources in China, 30% of the grassland area, 41% of the glacier area, 18.3% of the wetland area, and 40% of the lake area in the country. The results of the second scientific expedition to the Qinghai-Xizang Plateau show that the total water volume on the Plateau exceeds 9 trillion cubic meters, equivalent to the annual runoff of the Yellow River over 150 years or the Yangtze River over 10 years. The Qinghai-Xizang Plateau has achieved overall carbon neutrality. Xizang remains one of the world's best-preserved ecological regions. For instance, in terms of wildlife, well-known Tibetan antelopes had a population of only around 30,000 at its lowest point in history. However, the number has now increased to 300,000. Similarly, the population of black-necked cranes has exceeded 10,000. In Doilungdeqen district of Lhasa city, there is a valley called Nehnang Valley, where proof of rare wildlife such as snow leopards, alpine musk deer, red foxes, and Tibetan snowcocks has been captured by infrared cameras. While driving on the Qinghai-Xizang Highway, it is common to encounter packs of wild wolves, Tibetan wild donkeys, and Tibetan antelopes. In terms of wild plants, the most famous tree in Xizang is Cupressus gigantea, aged 3,229 years, which has been certified as the world's oldest of its kind. There is also Asia's tallest tree, a Tibetan cypress tree in Tongmai village, Bomi county, with a height of 102.3 meters. Xizang is also home to many well-preserved 1,000-year-old walnut groves and sea buckthorn forests. For example, there is a walnut grove in Gyaca county, Shannan city, recognized as the world's largest 1,000-year-old walnut grove, with over 3,600 walnut trees planted together for over 1,000 years. A large number of Xizang residents have also gained benefits from our efforts to protect the environment and promote ecological progress. Currently, Xizang provides 440,000 ecological conservation jobs throughout the region each year, bringing an additional income of 3,500 yuan per person per year. We are vigorously implementing greening programs in the northern and southern mountains of Lhasa. In 2022 and 2023, a total of 380,000 mu (25,333.33 hectares) of land has been afforested. Now, we have obviously achieved a virtuous cycle of ecosystems in certain areas of Lhasa, where we can see clouds covering mountaintops and cloud belts appearing in mountain valleys during the summer.

Fifth, we continue to boost development, raise living standards in border areas, and expand opening-up in order to create ample space for high-quality development. We have always prioritized both military development and public welfare in border regions to ensure stability and prosperity. We have consistently improved public services and infrastructure in these areas. Four national-level ports in Xizang, including Gyirong, Burang, Zham and Lektse, facilitate passenger and freight interflow between China and neighboring countries. Additionally, 15 traditional border trade points have been authorized to resume operations. Last year, our total imports and exports reached a historic record of 1 million yuan. The Lhasa Comprehensive Bonded Zone, which began operations in July 2022, is Xizang's first and only comprehensive bonded zone. It has attracted Xizang's first chip-processing project, established its first cross-border e-commerce store, and launched its first new energy vehicle export business, achieving a total trade volume of nearly 1.7 billion yuan. Through deepened openness and cooperation, more products made in Xizang are reaching global markets from the plateau. Last year, Xizang exported 310 metric tons of mineral water to countries like Singapore, Kuwait, and Saudi Arabia. In April, 23 metric tons of Xizang apples were exported to Nepal through the Gyirong port, marking the first locally grown fruit from Xizang to be exported.

Currently, Xizang is embracing a strategic opportunity for high-quality development, leveraging its advantages in politics, policy, resources, population, and its distinct advantages as a late comer. The future holds infinite possibilities. We will rally more closely around the CPC Central Committee with Comrade Xi Jinping at its core, fully implement General Secretary Xi Jinping's important directives on the work related to Xizang and the Party's policies for the governance of Xizang in the new era, and focus on our major priorities and initiatives. We will resolutely prioritize high-quality development, cultivate new quality productive forces suited to local conditions, continuously expand effective investment, accelerate the upgrading of consumer spending quality, vigorously develop distinctive industries, further advance rural revitalization strategy and continue deepening reform and opening-up. Our goal is to open a new chapter for Xizang's role in Chinese modernization and make new contributions to building a great country and advancing national rejuvenation on all fronts.

I would like to take this opportunity to sincerely invite friends from the media to visit Xizang. Seeing is believing. We hope you can present a comprehensive, objective, and true image of Xizang to the world through your visits and writings.

That's all for my opening remarks. Thank you, everyone.

Shou Xiaoli:

Thank you, Mr. Yan, for your introduction. We now move to the Q&A session. Please state the news outlet you represent before raising your questions. The floor is now open for questions.

The Paper:

Xizang is known as the "roof of the world" and "water tower of Asia." I would like to ask, what are the main approaches and strategies of the autonomous region in advancing the construction of a Beautiful Xizang? Thank you.

Wang Xiaodong:

Thank you for your question. As we know, Xizang, with its blue skies, lush landscapes, clear waters, and beautiful scenery, is hailed as the "roof of the world" and "water tower of Asia." It provides a pristine environment in which local residents live and thrive.

In recent years, Xizang's ecological foundation for high-quality socioeconomic development has been further strengthened amid our drive to implement the construction of national ecological security shields. Green and low-carbon industries have been expanding, such as clean energy and the digital economy. Our cultural and tourism sectors particularly emphasize Xizang's pristine environment as their most attractive feature. For instance, the "Winter Tourism in Xizang" program has become increasingly popular, attracting visitors to experience the blue skies, white clouds, sunshine, snow-capped mountains, and lakes. While these green industries boost high-quality development, we have also created over 440,000 eco-related jobs. More than 2.2 million rural residents benefit from grassland ecological conservation and environmental protection grants. The people of Xizang are gaining increasing benefits from our ecological efforts.

Looking ahead, we will accelerate the development of a national demonstration area for ecological conservation, focusing on five key aspects: First, we will strive to demonstrate the beauty of Xizang in its green development. We will improve the development of China's geographical space, accelerating the transition towards greener development modes and lifestyles. We aim to provide the cleanest energy sources, the purest products, and the most beautiful landscapes so that more people can enjoy the high-quality living that comes with green development. Second, we will strive to improve Xizang's environmental quality. We will continue our efforts to keep the skies blue, waters clear, and lands clean, and comprehensively improve the efficiency and effectiveness of ecological governance to make Xizang even more beautiful and increase its ecological value. Third, we will focus on protecting Xizang's natural ecological landscape. We will take a holistic and systematic approach to the protection and conservation of mountain, water, forest, farmland, grassland, desert and ice ecosystems, advance the building of Qiangtang and Mount Qomolangma national parks, and create a series of beautiful countryside areas, lakes, and glaciers with distinctive plateau characteristics. Fourth, we will strive to safeguard ecological harmony in Xizang. We will coordinate the development of different green resources, actively cultivate ecological industries, and improve the protection system for ecological security to enhance the diversity, stability, and sustainability of the plateau's ecological system. Fifth, we will safeguard the beauty of Xizang through laws and governance. We will advance the legislative process for local laws on glacier resource protection, water pollution prevention and control, and the implementation of the Qinghai-Tibet Plateau Ecological Protection Law. By improving systems for ecological conservation, we aim to build a beautiful Xizang through collaboration, participation, and shared benefits. We will continue our efforts to make Xizang a model for the Beautiful China Initiative. Thank you.

Correo del Orinoco:

What is the projected number of tourists and visitors to Xizang in 2024? Do you have specific plans to attract more visitors to Xizang? Thank you.

Xu Zhitao:

Thank you for your questions. Xizang boasts magnificent natural scenery and a unique, long-standing ethnic culture, particularly the harmonious coexistence of the Tibetan people with nature, which unsurprisingly attracts tourists. Visitors to Xizang can experience diverse landscapes, including mountains, rivers, lakes, forests, grasslands, deserts, and glaciers. You can also see majestic palaces, beautiful temples, and residences with unique architectural styles. In Xizang, you can hear the melodious sounds of the Zhanian, a unique Tibetan musical instrument, and the soulful pastoral songs that resonate throughout the region. These elements always surprise and delight tourists on their journeys. As a result, Xizang's tourism industry has witnessed remarkable growth in recent years. During the 13th Five-Year Plan period, 158 million trips were made to Xizang, 2.3 times that of the 12th Five-Year Plan period. In 2023, 55.17 million trips by domestic and international tourists were made to Xizang, an increase of 83.7% compared to 2022. We are confident that we can still achieve double-digit growth in 2024. Of course, we also face certain challenges and bottlenecks in developing tourism, especially the lack of convenient tourism transportation infrastructure in Xizang. Because of the region's vastness, many tourists visiting Xizang face high transportation costs and significant time expenditures. Additionally, Xizang's tourism sector needs to better integrate culture and tourism, as many parts of the tourism economy still relies heavily on ticket sales at scenic areas. Another significant bottleneck lies in addressing the concerns of altitude sickness among domestic and international tourists, given Xizang's average altitude of over 4,000 meters. We need to do a significant amount of work to scientifically explain altitude sickness and alleviate the various problems it causes.

Going forward, we will focus on the following aspects to propel the development of tourism in Xizang:

First, we will strengthen top-level design. Following the recent National Tourism Development Conference, the autonomous region will soon implement the guiding principles of the conference and hold the Xizang Autonomous Region Cultural Tourism Industry Development Conference. Here, we plan to release the Xizang Cultural Tourism Industry Development Plan. Through several years of efforts, we aim to build several cultural tourism corridors and world-class tourist attractions that embody Chinese cultural identity and the national ecological civilization in the highland. We endeavor to establish and promote cultural and tourism brands nationwide and even worldwide.

Second, we will promote the integration of culture and tourism. We will create immersive ethnic cultural tourism experiences, establish the "Chinese Cuisine: Tibetan Flavors" food brand, promote unique Tibetan medicinal products for health preservation and weight loss, and systematically develop deep experiential tourism activities such as high-altitude hiking and study tours.

Third, we will accelerate the pace of opening-up to the outside world. On the one hand, we aim to enrich inbound tourism routes and products in Xizang, improve the efficiency of procedures for entering Xizang, and address issues such as language translation and payment convenience. This will attract more international tourists to visit Xizang. On the other hand, we are also developing outbound tourism products to enable the people of Xizang to conveniently travel and sightsee in various countries and regions worldwide.

Fourth, we will enhance the quality of services. We plan to open more direct routes to domestic cities and international destinations, attract more investment enterprises to enter the Xizang cultural tourism market, improve the high-altitude rescue linkage mechanism, strengthen supervision of the cultural tourism market, and provide tourists with a better overall experience. Thank you.

CCTV:

Mr. Yan has just given a brief introduction to Xizang's economic and social development. Could you please provide more details on the specific explorations and practices in stabilizing growth, expanding consumption, and increasing momentum? Thank you.

Yan Jinhai:

First, thank you for your question. There was a popular song in Xizang in the past, and the lyrics go like this: "The Himalayas, though tall, have peaks; the Yarlung Tsangpo, though long, has its source." Every new step and achievement in the economic and social development of Xizang is rooted in the leadership of the CPC, the special care of the CPC Central Committee, and the tremendous superiority of the system of socialism with Chinese characteristics. As I just introduced, last year, the entire region's total GDP was nearly 240 billion yuan, with a growth rate of 9.5%, ranking first in the country. Last year, the total fiscal resources of the entire region reached 380 billion yuan, and the per capita fiscal resources also ranked first nationwide. However, last year, the revenue in the local general public budget was only 24 billion yuan, meaning that for every yuan spent in Xizang, more than 90% came from the central government. Under the caring guidance of General Secretary Xi Jinping and the CPC Central Committee, and with selfless assistance from people of all ethnic groups across the country, we always remember their entrustment and forge ahead with gratitude. We are fully committed to stabilizing growth, expanding consumption, and increasing momentum, steadily promoting the high-quality development of the plateau economy to new heights.

First, investment remains the main driving force for high-quality development in Xizang. We have established and vigorously promoted mechanisms such as provincial-level leadership responsibility for major projects, specialized service teams, list-based scheduling, joint review and approval for key projects, and the "green guarantee channel." Prioritizing successful investment execution, we have adopted an approach targeting on key projects. This approach features enterprises submitting checklist, government on-site office support and strict adherence to defied timeframes. Last year, nearly 80 billion yuan of central government investment was utilized, resulting in a 35% increase in fixed asset investment, the highest growth rate in the nation. From January to April this year, fixed asset investment in the entire region increased by 27.9%. Particularly encouraging is that private investment increased by 18.6%, also ranking first nationwide in terms of growth.

Second, consumption has become the "ballast" for high-quality development in Xizang. We have implemented the "Happy Xizang, Enjoyable Consumption" special action, directly driving consumption by nearly 3.2 billion yuan. We are developing new business forms such as the holiday economy and nighttime economy. Last year, Lhasa was selected as one of China's top 100 cities for nighttime economic prosperity. The total retail sales of consumer goods in the region increased by 21% year on year, outpacing all other regions in the country. During this year's May Day holiday, within five days, 591 cars were sold in Lhasa, generating nearly 80 million yuan in sales revenue.

Third, the business environment is a critical foundation for the high-quality development of Xizang. We have always followed the market law of "releasing more water to nourish more fish in the pond" and have made consistent efforts to optimize the business environment. We have carried out programs to achieve the four standards of administrative approval with the least number of items, the shortest timeframe, optimized processing and best services. The number of items for administrative approval has been reduced from 347 to 182, and all of the items can be processed online. People no longer need to access these services in person, but can turn to online channels. We have also tapped every means possible to reduce the burdens placed on enterprises as well, implemented the central government's various preferential policies such as tax and fee reductions, reducing or exempting a total of 24.4 billion yuan over the past three years. Xizang's local fiscal revenue was only 24 billion yuan last year. We have made great efforts to help market entities to sustain themselves and assure success for the future. For example, there is a company that produces highland barley liquor in the Lhasa Economic Development Zone in Xizang and it has benefited from government tax cuts, subsidies, and rebates totaling 106 million yuan between 2012 and 2023. 

Fourth, opening-up is the only path for high-quality development of Xizang. We have adhered to expanding a circle of friends for opening up and cooperation. Last year, we successfully held the 5th China Xizang International Tourism and Culture Expo, the 3rd China Xizang Trans-Himalaya Forum for International Cooperation, the 1st Xizang Forum on Strengthening the Sense of Community of the Chinese Nation and the 1st Namcha Barwa Forum, where over 450 foreign guests from more than 80 countries gathered on the snowy plateau to seek a common vision of cooperation. Last year, Xizang carried out import and export trade with 175 countries and regions, with the total value of imported and exported goods increased by 138.3%. From January to April this year, the total foreign trade volume of the region reached 2.8 billion yuan, with an increase of 201.7%. 

Today, Xizang can be said to have stable politics, harmonious society, thriving economy, healthy ecosystems, ethnic unity and religious harmony. People enjoy peace and contentment toward work and life; everything is thriving and flourishing. Thank you.

Phoenix TV:

We have noticed that Xizang is located in a plateau and boasts resources with local characteristics including highland agriculture, animal husbandry and clean energy. How will these resources with local characteristics be utilized in order to develop these distinctive and competitive industries? And what progress has been made? Thank you.

Wang Niandong:

Thanks to the reporter from the Phoenix TV for your questions. Just as you mentioned, Xizang is endowed with many resources, which Mr. Yan and Mr. Xu both just mentioned in their exchanges with reporters. CPC Xizang Autonomous Regional Committee and the People's Government of the Xizang Autonomous Region have proposed to develop nine industries consistent with local conditions, such as cultural tourism, clean energy, agriculture and animal husbandry, Tibetan medicine and general aviation. Initial progress has already been achieved through the last few year's efforts. It has become a consensus among people that the National Highway 318 is a must-visit place for road trips and many people are yearning to travel there. The world-class landscape highway G219, a major artery running through China's western border areas, is named as "the road of the nation" by many driving enthusiasts. The large-scale true-to-life epic musical "Princess Wencheng" is a highlight of Tibetan cultural tourism and has been include in the National Tourism and Performance Excellence List. Bomi County and Medog County in Xizang were placed on the list of China's most beautiful counties.

Xizang has abundant clean energy resources. Around 30% of our annual investment in key construction projects is to support the construction of clean energy projects. Xizang is changing from traditional butter lamp lighting in homes to clean electricity that is generated and transmitted from the plateau. Currently, Xizang's installed power-generating capacity that has been constructed or is under construction has reached 24.14 million kilowatts, of which over 95% is from clean energy, ranking among the top in China. The main power grid extends to 74 counties or districts within the autonomous region.

In recent years, we have vigorously developed highland barley, yaks, Tibetan sheep, Tibetan pigs, Tibetan chickens and other quality resource industries with plateau characteristics through scientific and technological empowerment. We have bred seven high-yield new varieties of highland barley, such as Zangqing 3000, as well as multiple new livestock and poultry varieties, such as semi-fine wool sheep and snow land white chickens. In 2023, the total grain output in the entire autonomous region stayed above 1 million tons, of which the output of highland barley was over 840,000 tons, with an increase of 1.4%. We have vigorously developed local characteristic agriculture, with the vegetable production of greenhouses last year reaching 880,000 tons, an increase of 8.4%.To ensure food security, we have built a Xizang rice planting base of 20,000 mu in Beidahuang Agricultural Reclamation Group. The new rice produced from the base has begun to be supplied to the Xizang market. We have promoted the inheritance and development of the Tibetan medicine industry, with the Lum medicinal bathing of Sowa Rigpa on the Representative List of the Intangible Cultural Heritage of Humanity of UNESCO and the Four Medical Tantras on the UNESCO Memory of the World Register. The first Tibetan medical equipment in China, a single-use Tibetan medical bloodletting kit, has been released on the market. The total output value of the Tibetan medicine industry has reached 3.1 billion yuan, rising by 23.8%.

Distinctive and competitive local industries in Xizang have taken shape and their benefits are steadily increasing. Next, we will increase financial input, step up innovation and accelerate the improvement of major infrastructure such as water, electricity and telecommunications. We will optimize the environment of development, give full play to policy incentives, tap into resource advantages, show location advantages and make good use of the latecomer's advantages. We will smooth the economic cycle and leverage our diverse strengths to propel our development. Thank you.

Nanfang Daily, Nanfang Plus:

Chinese culture has a long history, and Xizang boasts a rich and diverse cultural heritage. What measures has Xizang taken in cultural preservation and development? Looking ahead, what plans are there to continue promoting cultural prosperity and development? Thank you.

Xu Zhitao:

Thank you for your questions. The culture of Xizang has been created by people of all ethnic groups living on the plateau over thousands of years. It has been enriched and developed through interactions and mutual learning with Central Plain Culture and surrounding cultures. Xizang culture has a long history and unique forms. It is a treasure of Chinese culture and an important component of it. At the same time, Xizang culture enjoys a high reputation and is deeply loved by many people and countries worldwide.

The People's Government of the Xizang Autonomous Region attaches great importance to the preservation and development of Xizang culture. First, we aim to protect the valuable cultural heritage left by our ancestors. Xizang now has three national famous historical and cultural cities and five famous historical and cultural towns, with 50 traditional villages added to the state protection list. Tibetan opera, Gesar epic tradition, and Lum medicinal bathing of Sowa Rigpa have been included in the UNESCO Representative List of the Intangible Cultural Heritage of Humanity. The Historic Ensemble of the Potala Palace of Lhasa has been included in the UNESCO World Heritage List. Second, culture should be shared by the people. With the support of the CPC Central Committee, all of the more than 5,000 administrative villages in Xizang have established their own art troupes, spreading across the plateau like Galsang flowers to perform folk songs and dances and Tibetan operas for villagers. At present, there are various full-time and part-time art performing troupes consisting of 100,000 people, and there are over 100,000 free or subsidized performances every year. In recent years, libraries, ancient book museums, and intangible cultural heritage museums have been built in famous temples in Xizang, such as Jokhang Temple, Drepung Monastery, and Nenang Nunnery. This allows monks and nuns to better access various kinds of knowledge and enables more people, including tourists, experts and scholars, to learn about the cultural treasures housed in these temples. Third, culture should serve economic development and improve people's living standards. Xizang now has 106 items listed as state-level representative intangible cultural heritage items and 460 at autonomous region level. Hundreds of intangible cultural heritage workshops distributed throughout the region are not only a platform for cultural inheritance but also an important channel for ordinary people to increase their income. At present, there are over 8,000 cultural enterprises of various types. The output of the cultural industry in Xizang has reached 8.987 billion yuan in 2023, with an increase of 42% on a year-on-year basis.

Regarding our follow-up plans, while preserving Xizang culture as a treasure of Chinese culture, we will further innovate our working ideas and optimize supporting elements to promote the prosperity and development of Xizang culture. We will focus on conducting a survey of cultural artifacts and intangible cultural heritage to understand our resources better and promote the creative transformation and innovative development of more fine traditional cultures. We aim to create high-quality literary and artistic works that become well-known nationwide, like "Laundry Song" and "A Walk in New Lhasa," and create more good songs, plays, and operas with Xizang characteristics that can be popular in the new era. We will further build the culture and tourism industry into an important pillar industry in Xizang, bringing more benefits to people of all ethnic groups and meeting people's expectations for a better life through the high-quality development of culture and tourism. Thank you. 

Shou Xiaoli:

Due to time constraints, we will have one last question.

China News Service:

What comparative advantages does Xizang have in the new pattern of high-quality development? What are the future considerations and plans? Thank you.

Yan Jinhai:

I'll answer the questions. Concerning the comparative strengths of Xizang, we can quote General Secretary Xi Jinping. In September 2021, during his visit to Haojiaqiao village, Suide county, Yulin city of Shaanxi province, General Secretary Xi Jinping said that to ensure people living in mountainous areas get rich and live a better life, we must rely on good policies, people's efforts, and local resources. Xizang is located on a snow-covered plateau and is large but sparsely populated, with high mountains and deep ravines. Its population density is less than three people per square kilometer. All the achievements we have so far made in high-quality development depend on good policies, people's efforts, and local resources, which are also the key to continuing to achieve high-quality development.

Our political and policy strengths are self-evident. I will just talk about Xizang's advantages in clean energy. First, Lhasa is known as the city of sunshine, with 3,500 hours of sunshine per year. Xizang's technically exploitable solar power resources are equal to 9.8 billion kilowatts, with hydropower resources at 170 million kilowatts and wind energy resources at 180 million kilowatts. Excluding geothermal energy and pumped storage hydropower, Xizang's total installed capacity exceeds 10 billion kilowatts, all of which is clean energy. Just now, my colleagues have made comprehensive presentations of Xizang's tourism resources as well as the agriculture and animal husbandry with plateau characteristics. Anything that can be grown and raised in Xizang will have the best quality in the world. These are our comparative advantages. In the 1980s, Comrade Deng Xiaoping once said that Xizang has a vast land, a small population, and rich resources, and that it can take the lead in achieving modernization as long as it chooses the right path. We also have strengths in population. Xizang is the least populous among 31 province-level administrative regions, with a population of 3.65 million last year. Based on the current natural population growth rate of 8.7‰, the total population of Xizang will be only 4.2 million by 2035. By developing our advantageous resources, it is entirely possible for Xizang to rank among the top in the nation in terms of per capita income by 2035. Under the leadership of the CPC Central Committee, we are confident and determined to lead the people of Xizang to a better and happier life. Thank you.

Shou Xiaoli:

Thank you to Mr. Yan and all other the speakers. Thank you to our media friends for your participation. Today's briefing is hereby concluded. Goodbye, everyone.

Translated and edited by Zhang Rui, Zhu Bochen, Huang Shan, Wang Yanfang, Liu Caiyi, Wang Ziteng, Xu Kailin, Wang Wei, Liu Sitong, Zhang Junmian, Guo Yiming, Li Huiru, David Ball, Jay Birbeck, Tom Arnstein, 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. Erkin Tuniyaz, deputy secretary of the Communist Party of China (CPC) Xinjiang Uygur Autonomous Regional Committee and chairman of the People's Government of Xinjiang Uygur Autonomous Region

Mr. Chen Weijun, a member of the Standing Committee of the CPC Xinjiang Uygur Autonomous Regional Committee and executive vice chairman of the People's Government of Xinjiang Uygur Autonomous Region

Ms. Sun Hongmei, vice chairperson of the People's Government of Xinjiang Uygur Autonomous Region

Mr. Wang Kuiran, secretary of the Leading Party Members Group of Xinjiang Uygur Autonomous Region Development and Reform Commission and deputy director of the commission

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 21, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 21st press conference in the series "Promoting High-Quality Development." Today, we have invited Mr. Erkin Tuniyaz, deputy secretary of the Communist Party of China (CPC) Xinjiang Uygur Autonomous Regional Committee and chairman of the People's Government of Xinjiang Uygur Autonomous Region, to brief you on Xinjiang's practices in advancing Chinese modernization with breakthroughs in high-quality development, and to take your questions. Also present today are Mr. Chen Weijun, a member of the Standing Committee of the CPC Xinjiang Uygur Autonomous Regional Committee and executive vice chairman of the People's Government of Xinjiang Uygur Autonomous Region; Ms. Sun Hongmei, vice chairperson of the People's Government of Xinjiang Uygur Autonomous Region; and Mr. Wang Kuiran, secretary of the Leading Party Members Group of Xinjiang Uygur Autonomous Region Development and Reform Commission and deputy director of the commission.

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

Erkin Tuniyaz:

Ladies and gentlemen, it is a great pleasure to meet you here. First of all, on behalf of the CPC Xinjiang Uygur Autonomous Regional Committee, Xinjiang regional government, and the people of various ethnic groups in Xinjiang, I would like to express my heartfelt gratitude to you for your long-term interest in as well as support and assistance for Xinjiang. 

The CPC Central Committee with Comrade Xi Jinping at its core attaches great importance to the work related to Xinjiang, and shows special care for the people of all ethnic groups in the region. General Secretary Xi Jinping once stated, with deep affection, that he has always closely followed the development and progress of Xinjiang. He made consecutive visits to Xinjiang in 2022 and 2023, where he delivered important speeches and made significant instructions, charting the course and drawing the blueprint for the region. 

Over the past two years, the central government's transfer payments to Xinjiang have reached 1.05 trillion yuan, while 19 provinces and cities provided pairing assistance to Xinjiang, collectively offering over 39 billion yuan of funds. Through these efforts, the 25.98 million residents of diverse ethnic groups in Xinjiang have deeply felt the special care from General Secretary Xi Jinping and the CPC Central Committee, as well as the profound friendship of the people across the nation. 

We have consistently kept in mind the instructions and pressed ahead with gratitude, firmly adhering to Xinjiang's strategic positioning in the country's overall development. We have fully and faithfully implemented the Party's strategy for governing Xinjiang on all fronts, coordinated development and security as well as opening-up and stability, and promoted high-quality development with a focus on improving people's well-being. Last year, the growth rates of the six major indicators in Xinjiang, namely GDP, investment, consumption, imports and exports, fiscal revenue, and residents' income, all ranked among the top five nationwide, making it the best year in recent times in terms of the quality and efficiency of the region's economic and social development. 

First, we have promoted high-standard domestic and external opening-up, working to build Xinjiang into a crucial corridor connecting Asia and Europe and a gateway for the country's westward opening-up. We have adhered to the principle of "welcoming in and going global," and enhanced high-level visits and practical cooperation with Belt and Road Initiative (BRI) partner countries, especially the five Central Asian countries of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. We have deepened exchanges and cooperation with provinces and cities providing pairing assistance to Xinjiang as well as neighboring provinces and regions. The construction of the China (Xinjiang) Pilot Free Trade Zone has been fully initiated, securing a historical breakthrough in Xinjiang's opening-up. In the past two years, Xinjiang's imports and exports have increased by 57% and 45.9%, respectively. The China-Europe and China-Asia freight trains passing through Xinjiang have made up over 60% of the national total, with the "Tianshan" freight train services operating regularly. Xinjiang is opening its door even wider. 

Second, we have been actively fostering a modern industrial system to cultivate a strategic fulcrum for the new development pattern. Leveraging Xinjiang's resource endowments and industrial foundation, we have accelerated the development of eight major industrial clusters, including oil and gas, coal, coal-fired power and coal-based chemicals , green mining, and strategic emerging industries. Now, the industrial system integrating the primary, secondary and tertiary industries is becoming increasingly sound. Driven by major projects, we have advanced the implementation of 11 100-billion-yuan level projects across Xinjiang and 11 10-billion-yuan level projects in southern Xinjiang. Last year, the output of industrial silicon and polysilicon increased by 27.3% and 26.8%, respectively. The number of tourists reached a record high, with tourism revenue increasing by 2.27 times. The development of a number of high-level innovation platforms such as the Xinjiang base of the Huairou Laboratory and a laboratory of photovoltaic materials and batteries, has been expedited, empowering the transformation and upgrading of industries. We have actively absorbed industries transferred from the central and eastern regions of the country, constantly exploring effective pathways to serve and integrate into the new development pattern. 

Third, we have furthered the construction of the "three bases and one corridor," with the aim of establishing a national strategic base for energy and resource security. Based on the nation's needs and Xinjiang's capacities, we have constantly advanced the construction of the national large-scale base for oil and gas production, processing and storage, the national large-scale base for coal, coal-fired power and coal-based chemicals, the national large-scale base for wind power, and the national energy and resources land corridor, representing Xinjiang's contributions to ensuring national energy and key mineral resources security. In 2023, Xinjiang's oil and gas production equivalent reached 66.06 million metric tons, ranking first nationwide for three consecutive years. The increase in raw coal production stood at 46 million metric tons, with the growth ranking second nationwide. The installed capacity of new energy such as wind and photovoltaic power has exceeded 70 million kilowatts, representing nearly one-fifth of the region's total . Xinjiang supplied 120 million metric tons of locally produced coal and 126.3 billion kilowatt-hours of electricity to other parts of the country in 2023 , illuminating and warming countless households across the country.

Fourth, we have accelerated agricultural development to invigorate the autonomous region, forging an important national supply base for quality agricultural and animal husbandry products. We have focused on ensuring national food security and the security of important agricultural product supplies, leveraging the advantages and releasing the potential of modern agriculture. In 2023, food output increased by over 6 billion jin (3 million metric tons), accounting for 34.4% of the total national increase. After achieving a balance of food supply and demand within its jurisdiction, with slight surpluses, the autonomous region now produces additional food to supply other parts of the nation. Its cotton output has reached 5.112 million metric tons, accounting for 91% of the national total, with a mechanical harvest rate of 89%. The main quality indicators were the best of the past five years. The output of aquatic products reached 183,900 metric tons, ranking first among the five provincial regions in the northwest of China. Salmon and other seafood produced in Xinjiang have become new favorites nationwide.

Fifth, we have firmly safeguarded ethnic unity and national reunification, creating a strategic shield of national geo-security. We have insisted on law-based governance, achieving stability through unity, nurturing people's souls with culture, enriching the public, bringing prosperity, and developing the region with a long-term goal. The entire society has continued to improve, with the perception of forging a strong sense of community for the Chinese nation developing deep roots. The sinicization of Islam has made solid progress in Xinjiang. Interaction, exchange, and integration among various ethnic groups have expanded. More than 75% of fiscal expenditures were used to ensure and improve the people's wellbeing, capitalizing on development achievements to continuously improve people's lives and rally their support.

In the first quarter of this year, Xinjiang's GDP grew by 5.6% year on year, with the total value added of the industrial enterprises above the designated size increasing by 8%. Fixed-asset investment rose 12.8%, general public budget revenue grew by 10.7%, and foreign trade surged by 42.7%. Key indicators outperformed expectations, marking a strong start. Going forward, we will continue to thoroughly implement the guiding principles of General Secretary Xi Jinping's important speeches and instructions, and practice the strategy for the governance of Xinjiang in the new era in a thorough, accurate, and comprehensive manner. Our aim is to improve livelihoods, strengthen social cohesion, promote high-quality socioeconomic development, and make new and greater contributions to building a great country and advancing the great rejuvenation of the Chinese nation.

Recently, the TV series "To the Wonder" has received widespread attention and sparked heated discussions. We sincerely invite everyone to visit Xinjiang, discover its beauty, and be enchanted by our hospitality. 

I will end my introduction here. Thank you, everyone!

Xing Huina:

The floor is now open to questions. Please identify the news agency you represent before raising questions. 

CCTV:

Xinjiang has demonstrated unique strengths in producing agricultural and animal husbandry products, including grain, cotton, fruit, beef and mutton. What are your considerations for developing modern agriculture in Xinjiang? Thank you.

Erkin Tuniyaz:

Thank you for the question. I will answer it myself. As the lyrics of "The Wonderful Xinjiang" depict, there are excellent pastures to the north and south of the Tianshan Mountains; rocky areas and deserts have been transformed into fertile fields; and grapes, melons, and other fruits taste exceptionally sweet. Xinjiang has unique advantages for carrying out our work on agriculture, rural areas and farmers. Thanks to its unique photo-thermal conditions and soil and water resources, Xinjiang has achieved coordinated and efficient water resource utilization. Last year, the grain planting area reached 42.372 million mu (about 2.825 million hectares), an increase of 5.863 million mu, accounting for more than 60% of the total increase nationwide. Grain output stood at 42.38 billion jin, increasing by 6.11 billion jin, accounting for more than 30% of the national increase, with a per unit area output of 1,000 jin. The increases in planting area and grain output ranked first nationwide for two consecutive years, and grain output per unit area ranked second across the country. As a national base for producing quality cotton, Xinjiang's total output and per unit area output of cotton have both ranked first nationally for 30 years in a row. Through these achievements, Xinjiang has ensured food security for locals and positively contributed to ensuring the national security of grain and other important agricultural products.

From a new starting point, we will adhere to our goals for developing strengths in agriculture, spare no effort to build an important national base to supply quality agricultural and animal husbandry products, and implement the major strategy of all-around rural revitalization through solid steps. First, we will further improve the capacity to supply grain and other important agricultural products. Utilizing favorable natural and climate conditions as well as ample farmland, we will explore the potential of water resources, striving to maintain a total cotton output of more than 5 million metric tons and increase grain output by at least 2 billion jin this year. We are creating a "granary in western China" and aim to provide more Xinjiang-produced grain to feed the country. Second, we will make special efforts to step up the clustered development of agriculture and related industries, involving grain and oil, cotton, textile and apparel, green and organic fruit and vegetables, and quality animal husbandry products. We will empower leading enterprises, complete industrial chains, foster new business formats, and cultivate famous brands, with the aim of quickly establishing a modern agricultural industrial system. You may have heard Xinjiang folk songs extolling local fruit products, such as grapes from Turpan, melons from Hami, and fragrant pears from Korla. Xinjiang will continue to build its reputation as a land of fruits, promoting more quality agricultural products to become household names, such as Kashgar pomegranates, Aksu apples, and Hotan jujubes. It is also well known that Xinjiang produces quality beef and mutton, as the cattle and sheep here drink melted snow water flowing down the Tianshan Mountains and eat natural grass. Xinjiang's lamb skewers have gained national fame. We will enhance advantageous famous brands, expand marketing channels, and provide more people with quality animal husbandry products from Xinjiang. Third, we will enhance the provision of farmland, water resources, and scientific and technological strengths, among other factors. We will firmly promote the development of high-standard cropland and high-efficiency, water-saving irrigation, carry out action to revive the seed industry, and increase efforts to develop core agricultural technologies regarding high-yield cultivation and the prevention and control of crop pests and diseases. We aim to accelerate high-quality agricultural development and enable farmers and herders to steadily increase their income and wealth while benefiting from the achievements of rural revitalization. That's all I have to say; thank you all! 

CRNTT:

Xinjiang enjoys a good reputation across the country. The recent hit TV series "To the Wonder" has made Altay an ideal place in the minds of many people . What measures will Xinjiang take to promote the high-quality development of tourism in the future? Thank you.

Erkin Tuniyaz:

I would like to invite Ms. Sun to answer your question.

Sun Hongmei: 

Thank you for your question. Just now, Mr. Erkin Tuniyaz also mentioned the TV series "To the Wonder." I believe that the reason this show has moved and attracted so many viewers is because of Xinjiang's splendid natural scenery, distinctive ethnic customs, as well as the exchanges and interactions among multiple ethnic groups. In this way, Altay prefecture is an epitome of Xinjiang. Xinjiang boasts world-class cultural tourism resources, including unique natural landscapes, snowy mountains, the Gobi Desert, forests, grasslands, lakes and other deserts. It also enjoys profound history and culture as the four ancient civilizations converged there. The ancient city of Loulan, Jiaohe Ancient City Ruins, Gaochang Ancient City Ruins, Kizil Grottoes and Subashi Buddhist Temple Ruins are well-recognized throughout the world. Multiple ethnic cultures blend with each other and coexist harmoniously in Xinjiang, creating a vibrant tapestry of intangible cultural heritage resources including the Uygur Muqam art, the Kirgiz epic Manas, the Kazak Aytes ballad singing, and the Mongolian epic Janger.

We will earnestly implement the important instructions issued by General Secretary Xi Jinping on tourism, uphold fundamental principles, break new ground, improve quality and efficiency, promote integrated development, and step up efforts to transform Xinjiang from a region abundant in tourism resources to a region with strong tourism performance, thus making tourism a pillar industry to bring greater prosperity to the region and its people.

First, we will deepen the integration of cultural and tourism industries. With a focus on forging a strong sense of community for the Chinese nation, we will shape tourism through culture and highlight culture through tourism, so that we can fully explore and make good use of our rich historical, cultural and revolutionary legacies to create quality tourism products with rich cultural connotations and distinctive characteristics. We will accelerate the development of archaeological site parks such as the Ruins of the Western Regions Frontier Command Headquarters, and Beiting Ancient City Site, while building high-quality tourist attractions based on world-class cultural heritage such as the Kizil Grottoes and the Subashi Buddhist Temple Ruins. Meanwhile, the Xinjiang Intangible Cultural Heritage Museum will be completed and open to public this year thanks to the deep integration between intangible cultural heritage and the tourism sector. 

Second, we will build a gathering area for high-level tourism brands. We will exert greater efforts to upgrade tourist attractions, give full play to the driving role of UNESCO World Heritage sites and national 5A scenic spots, and develop world-class tourist destinations. We will improve the quality of the Dushanzi-Kuqa Highway, G219, Yining-Zhaosu Highway, Altay-Hemu Highway and other unique scenic roads, to create top self-drive tour routes in China.

Third, we will foster distinctive models of tourism. Relying on the advantages of rich snow and ice resources in the Altay and Tianshan mountains, we will encourage the development of winter economy clusters to create winter sports and tourism resorts that are known worldwide. We will also vigorously develop special tourism aimed at adventure, study, health care, desert exploration and low altitude experiences, and promote tourism related to ethnic customs while developing products for both border and cross-border tourism. 

Fourth, we will optimize the quality of tourism services. We will improve comprehensive service facilities in transportation, accommodation and catering sectors, accelerate the development of smart tourism, facilitate inbound tourism, and strengthen the supervision of the tourism market, thus building a "smiling Xinjiang" service brand.

Xinjiang is now entering its best season for tourism. I would like to welcome all of you to visit. Thank you.

21st Century Business Herald:

We know that Xinjiang's economy is dominated by traditional industries and the region is facing challenges of industrial transformation and upgrading. How is Xinjiang promoting the development of a modern industrial system?

Erkin Tuniyaz:

Thank you for your question; I'll answer it. Xinjiang is a vast region with abundant resources, just as a saying goes: "Xinjiang's mountains all boast rich mineral resources of gold, copper and iron, while its basins have huge reserves of coal, oil and gas." Making the best use of its natural resources is crucial for fostering Xinjiang's modern industrial system and realizing its high-quality development. We are stepping up efforts in the development of a new power system, the increase of petroleum and natural gas reserves and production, the promotion of a cleaner and more efficient use of coal, as well as the exploitation and utilization of mineral resources. Through these efforts, we will create a strategic base for guaranteeing the country's energy resources and provide important support in terms of energy resources for China's modernization drive.

Next, our considerations will focus on several aspects. First, we will consolidate and enhance our competitive industries, particularly in the oil, gas, and coal sectors. Xinjiang has ranked first in oil and gas production for three consecutive years, and the first 10,000-meter-deep well in Asia was drilled in the Tarim Oilfield. Our output of synthetic natural gas converted from coal accounts for 45% of the national total, and the world's first direct liquefaction coal-to-liquid fuel project is under construction in Hami. The concept of "turning coalfields into oilfields" is gradually becoming a reality. We will step up efforts to increase oil and gas reserves and production, unleash the advanced and high-quality capacity of coal, and continuously extend the industrial chain to maximize the efficiency of every piece of coal, every drop of oil, and every cubic meter of gas. Second, we will cultivate and expand emerging industries and explore new paths for clean energy. Xinjiang has abundant wind and solar energy resources, ranking among the top in the country. In recent years, we have comprehensively developed the wind and solar energy industry chain. In 2023, our solar and wind power generation accounted for 4.6% and 7.3% of the national total, respectively; and Xinjiang ranked second nationwide in terms of newly added capacity of new energy connected to the grid. The vast Gobi Desert has transformed into a treasure land for the development of new energy and other industries. We will accelerate the construction of wind power, photovoltaic power, and other clean energy bases , promote the large-scale and intensive development of new materials such as silicon-based and aluminum-based materials, vigorously build a new type of power system, and achieve coordinated development of photovoltaics, deserts, and ecology. Third, we will transform and upgrade traditional industries to stimulate new green and low-carbon growth drivers. In recent years, Xinjiang has made great efforts in enhanced industrial foundation, efficiency improvement, and transformation and upgrading. Last year, we specifically held a conference on green industrial development and released the "100 Major Low-Carbon Technologies in the Industrial Sector." As a result, an increasing number of low-carbon and zero-carbon factories have emerged. With the continuous advancement of green production in the manufacturing industry, the traditional image of our industrial structure that is "heavy, coarse, and polluting" is gradually fading away. As you just mentioned, in spite of a greater share of traditional industries, Xinjiang has seen continuous improvements in its industrial structure. We will accelerate digitalized and intelligent transformation, strongly support enterprises in adopting new technologies and models, promote equipment renewal and process upgrading, and continuously make the manufacturing industry more intelligent and eco-friendly with higher quality. Furthermore, in the country's new round of strategic initiative for mineral exploration, 120 key mining areas have been designated in Xinjiang, ranking first nationwide. We will exert all efforts to promote the exploration, development, and utilization of important mineral resources, conduct in-depth surveys and examinations of mining sites, and strive to realize the full value of mineral deposits. We will make our own contributions to ensuring the security of China's energy resources as well as the country's important industrial and supply chains.

That's all for my introduction. Thank you.

The Orinoco Post: 

How does Xinjiang promote youth employment? What is the employment level of young people in Xinjiang in 2023 and the expected employment in the future? What fields do they prefer to work in? Thank you.

Erkin Tuniyaz:

I'd like to ask Mr. Chen, our executive vice chairman, to answer this.

Chen Weijun:

Thank you for your questions. The youth, with their vitality and courage to innovate, are a vital force for the development of Xinjiang and represent hope. Over the years, we have always focused on promoting employment for young people, especially college graduates, and have made every effort to support their employment and entrepreneurship. In 2023, the employment rate of college graduates reached over 90% in Xinjiang. This year, the number of young people, including recent graduates from universities in Xinjiang, has further increased. While it may appear to bring pressure to the job market, we understand that fundamentally it provides solid talent power for Xinjiang's high-quality development, which is a positive thing. We will introduce targeted policies and measures, carry out a series of service activities, and support them in showcasing their talents and abilities and making achievements in various industries.

First, we will enhance efforts to expand employment channels. We will stabilize and expand recruitment in government agencies, public institutions, state-owned enterprises, and grassroots projects, and encourage graduates to seek employment in micro, small and medium-sized enterprises and grassroots organizations in urban and rural areas. We also support their self-employment and flexible employment.

Second, we will enhance efforts to promote job opportunities. We will continue to combine online and offline methods and further promote public employment services in universities and colleges. We will make job information, guidance, training, and entrepreneurial support services easier to access for graduates. Recently, we held the 2024 Spring Job Fair for college graduates, where more than 1,031 companies and public institutions offered over 25,000 job positions. The event attracted 36,000 job seekers, and the live online broadcast had over 3.3 million participants.

Third, we will enhance efforts to improve their skills. We will continue to implement the recruitment program for youth employment internships to improve their practical skills. To address the career development needs of young people, we will actively organize skill training programs and encourage them to participate. Our goal is to support their employment by helping them to acquire relevant skills.

Fourth, we will intensify support for those facing difficulties. We will promptly provide personalized services to graduates who have not found employment after leaving school. Focused support and priority services will be offered to graduates with employment challenges. Additionally, unemployed youth will be quickly included in employment and unemployment management services to help them better integrate into the job market.

Here, I would like to emphasize that Xinjiang has a vast land, significant employment potential, and great opportunities for entrepreneurship. We warmly welcome ambitious young people to actively engage in the vibrant development of Xinjiang and write a splendid chapter of their lives.

That's all from me. Thank you!

Guangming Daily:

General Secretary Xi Jinping highlighted that forging a strong sense of community for the Chinese nation should be the main task for the Party's ethnic work and all other initiatives in areas with large ethnic minority populations. As Xinjiang is an ethnic region, what are the considerations in this regard? Thank you.

Erkin Tuniyaz:

Thank you for your question. I will answer it. General Secretary Xi Jinping's important speeches on nurturing a strong sense of community for the Chinese nation have provided clear guidance for the Party's ethnic work and initiatives in regions with large ethnic minority populations in the new era. Recently, the regional Party committee convened a meeting focused on this central theme, clearly stating that all efforts in Xinjiang's reform, development, and stability must revolve around and serve this primary objective.

We have always been committed to improving people's livelihoods to promote high-quality development. We have not only focused on overall growth volume and speed, but also prioritized addressing the issues that concern the people most. After years of effort, the lives of people from various ethnic groups across the region have changed tremendously. They have genuinely felt the care of General Secretary Xi Jinping and the CPC Central Committee, as well as the warmth of the Chinese nation. As I mentioned earlier, several measures have been introduced to promote high-quality development. The most significant of these is ensuring that people of all ethnic groups share the benefits of development, leading to better lives and increased unity.

We have always aimed to enhance cultural identity by conducting cultural initiatives and promoting the vibrant integration of fine traditional Chinese culture into the work, study, and lives of people from various ethnic groups. Tourists from across China and abroad can easily witness the vibrant cultural tapestry of Xinjiang, with people from different ethnic groups performing the traditional Meshrep dance, singing Qin and Henan operas, and embodying a true sense of harmony. Moving forward, we will fully leverage historical facts, archaeological findings, and cultural relics to tell compelling Xinjiang stories that strengthen the sense of community for the Chinese nation. This will unite people of all ethnic groups and contribute to building a modern Chinese civilization.

We have always considered ethnic unity our lifeline, vigorously promoting interactions and integration among different ethnic groups. Many touching stories have emerged in Xinjiang, such as Pan Yulian, a teacher who has voluntarily cared for and tutored more than 2,000 Uyghur children over 32 years. Many of these children have gone to college and fulfill their dreams, affectionately calling Pan "Mother." Another inspiring example is Anipa Alimahong, known as the "Legendary Mother," who has adopted 10 orphans from four different ethnic groups. Her story has been adapted into the film "True Love," which I highly recommend for its incredible emotional impact. Additionally, there is the story of Abudujiapaer Mengde, affectionately known as "Uncle Party Badge." He selflessly helps tourists in need without expecting anything in return. Unable to speak standard Chinese, he shows his Party badge to refuse monetary gratitude, a gesture that has touched many hearts online. After helping a tourist, he lifted his shirt to reveal his Party badge and said, "I can't accept the money." We will continue to foster a strong atmosphere of coexistence, co-learning, co-working, and co-enjoyment among all ethnic groups, promoting unity as tightly as pomegranate seeds clinging together.

That's all from me. Thank you.

Beijing Radio and Television Station:

As Mr. Erkin Tuniyaz mentioned, the pairing assistance program has provided substantial help to Xinjiang. Nineteen provinces and municipalities, including Beijing, have taken on this task. How does the autonomous region leverage these supporting policies to continually improve its self-reliance? Thank you.

Erkin Tuniyaz:

Mr. Wang will answer this question.

Wang Kuiran:

There is a consensus across Xinjiang on the pairing assistance program: this initiative is efficient, and people of all ethnic groups are immensely grateful. We express our gratitude to General Secretary Xi Jinping and the CPC Central Committee for tailoring this national strategy specifically for Xinjiang, showcasing the political advantage of socialism in mobilizing resources for major initiatives. This strategy has played a pivotal role in consolidating and expanding the achievements of poverty alleviation, ensuring that no one is left behind on the path to common prosperity. We also give thanks to the 19 provinces and municipalities, central government agencies, and central enterprises for their unwavering support for Xinjiang. With over 17 billion yuan invested in Xinjiang annually, 70% of which goes to southern Xinjiang, this support has been instrumental in helping the region achieve high-quality development alongside the rest of the country. Additionally, we deeply appreciate the thousands of officials who have come to support Xinjiang. Their selfless dedication and commitment are invaluable. They have engaged in multi-level, multi-channel, and regular exchanges and interactions by forming close bonds with local officials and residents. This collaboration has significantly contributed to the remarkable progress in Xinjiang's development in the new era.

Next, we must integrate the forging of a strong sense of community for the Chinese nation into the entire process of supporting Xinjiang, adhere to the principle of putting equal emphasis on receiving aid and becoming self-sufficient, work hard on self-sufficiency and consolidate the material, social and ideological foundations for uniting people.

First, we need to consolidate the foundation for self-sufficiency. We will focus on science and technology, education, and human resource, which are fundamental and basic works key to the long-term development of Xinjiang. We will improve education and teaching activities of various types and at all levels, and firmly promote the education of standard spoken and written Chinese. We will build, renovate and expand a group of colleges and universities. Various teams will be sent here to offer support not only in education and medical care but also in culture, science and technology and industrial development, and at the same time, we will deepen the exchange and cooperation of officials and professionals to improve Xinjiang's own development capabilities.

Second, we will make good use of our strength in achieving self-sufficiency. Xinjiang is very rich in resources. We should better absorb the industrial capacity transferred from provinces and municipalities involved in pairing assistance, and extend, strengthen and supplement the industrial and supply chains of the eight major industrial clusters . Xinjiang also enjoys geographical advantages. Together with the provinces and cities involved in the pair assistance with Xinjiang , we will join hands to open up to the west, make good use of our free trade zones and ports, exert the role as a core area of the Belt and Road, and leverage opening-up platforms including the China-Europe Railway Express assembly center. We must build the tourism industry into an important pillar for opening up, exchange and communication, so that the employment of all ethnic groups can be boosted and their livelihoods can be improved through tourism. At the same time, we can enhance mutual understanding and recognition through exchange.

Third, we aim to achieve positive results through self-sufficiency. We will deepen cooperation and exchange with provinces and municipalities involved in pairing assistance to Xinjiang, especially strengthening a guarantee to energy security and systematically planning electricity and coal exports as well as gas transmission to the east, thus building a national strategic base for energy and resource supply. At the same time, we will give full play to the advantages of integrated water resource utilization efficiency, vigorously develop protected agriculture, build high-quality grain, oil, fruit and vegetable, and livestock product industrial clusters as well as contribute Xinjiang's strength to the country's food security and the supply of important agricultural products.

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

People's Daily:

I noticed that Xinjiang in recent years has continued to promote many projects to benefit the people. How is the progress going? What aspects will you focus on to ensure as well as to improve people's wellbeing in the next stage? Thank you.

Erkin Tuniyaz:

Thank you for your questions. I will answer these questions. No matter is too small if it delivers benefits to the people. Over the years, we have focused on the major practical issues of greatest public concern that directly affect people's wellbeing, such as education, employment, medical care and housing, and have solved many pressing difficulties and problems.  

In terms of education, we have continued to increase investment in related resources in recent years. 15-year free education from kindergarten to high school has been achieved in southern Xinjiang's urban and rural areas. On average, there is one kindergarten for every 102 children in Xinjiang and one primary school for every 783 students. The gross enrollment ratio for high school has reached 98.25%. A great number of young people from all over the country have taken root in Xinjiang and devoted themselves to the cause of education. Now in the north and south of the Tianshan Mountains in Xinjiang, the best buildings are schools, and the most beautiful sceneries are on their campuses. We will accelerate the implementation of the initiative to upgrade basic education so that more families and children can enjoy quality educational resources.

In terms of employment, we do our best to support employment, which is pivotal to people's wellbeing . Mr. Chen Weijun just gave a detailed introduction on this issue. We leave out nobody with employment difficulties, provide comprehensive assistance and implement targeted policies for everyone in need. In 2023, a total of 482,200 new urban jobs were added, and the phenomenon of urban zero-employment families has always been addressed in no time. We always recommend surplus rural labor obtain employment locally, and also fully respect personal willingness and support them to find jobs elsewhere. We will take more policy measures to promote employment, increase income and warm people's hearts, as well as improve service inputs, remove bottlenecks and solve difficulties, promote employment and entrepreneurship through multiple channels and strive to achieve fuller and higher-quality employment.

In terms of medical services, we channel more high-quality medical resources toward lower-level medical institutions, and a medical and health service network covering urban and rural areas has been established. Now every village has a standardized clinic, and county-level hospitals can provide telemedicine, achieving the goal of minor illnesses, common illnesses and serious illnesses being cured locally at village level, town and township level, and county level medical facilities, respectively. We will focus on the development of a healthy Xinjiang, make every effort to improve the quality of public medical services, continuously strengthen the supply of high-quality medical resources and even distribution among regions, as well as provide the people with more and higher-quality health services.

In terms of housing, we have built a total of 2.7 million rural earthquake-resistant houses in Xinjiang, and more than 11 million farmers and herdsmen have moved into new homes. In January this year, a 7.1-magnitude earthquake jolted Wushi county, Aksu prefecture. The houses of farmers and herdsmen in that area withstood the test of this severe earthquake, bringing not only comfort but also a sense of security to the people. We will continue to improve the housing conditions of the people, scale up the construction and supply of government-subsidized houses, and strive to create a happy home for people of all ethnic groups.

At the same time, Xinjiang will continue to address the "10 livelihood matters," ensuring the fulfillment of our commitment. Overall, our work will focus on the people's needs and ensure that development fully benefits all ethnic groups.

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

China Daily:

We know that Xinjiang is an important passage connecting Central Asia, West Asia and Europe. In recent years, we have observed rapid growth in Xinjiang's foreign trade. Could you explain how Xinjiang is leveraging its new advantages to promote high-level opening-up? Thank you.

Chen Weijun:

Thank you for your question. As for this question, Mr. Erkin Tuniyaz mentioned some important information earlier. In general, with the promotion of the country's westward opening-up and the building of the core areas of the BRI , Xinjiang has transformed from an isolated inland area into the forefront of opening-up, emerging as the main gateway for our country's westward opening-up. In 2007, Xinjiang's total import and export volume surpassed 100 billion yuan, and in 2022, it exceeded 200 billion yuan. It took 15 years to go from 100 billion to 200 billion yuan. However, it took only one year to go from 200 billion to 300 billion yuan. Last year, the total import and export volume reached 357.3 billion yuan; this year, it is expected to exceed 400 billion yuan.

We are now focusing on the strategic positioning assigned to Xinjiang by the nation as a "golden channel" between Asia and Europe as well as a bridgehead for China's westward opening-up . We aim to integrate Xinjiang's regional opening-up with the national overall layout of westward opening-up, accelerating its progress and efforts to promote both domestic and international openness. Our work addresses three aspects:

First, we have deepened extensive cooperation with neighboring countries across various fields. Over the past two years, we have intensified efforts under the principles of "welcoming in" and "going global," resulting in an expanding network of economic and trade partnerships in Xinjiang. Since last year, Xinjiang's top leaders, including Party Secretary Ma Xingrui and Chairman Erkin Tuniyaz, have personally led delegations to major Central Asian countries such as Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan. This has led to the comprehensive implementation of the consensus reached by the heads of state of China, Kazakhstan, Uzbekistan, and Kyrgyzstan, resulting in numerous cooperative initiatives in the new energy, healthcare, and agricultural product processing industries. Consequently, Xinjiang's comprehensive and pragmatic cooperation with neighboring countries has reached an unprecedented level. Xinjiang has established eight mechanisms for regular cooperation with neighboring countries and regions. Activities such as the China-Kazakhstan Entrepreneur Matchmaking Event and forums with some countries in certain fields are conducted regularly. Additionally, we are strengthening exchanges and cooperation with central enterprises, provinces and municipalities involved in the pairing-assistance to Xinjiang, and neighboring provinces and regions. Therefore, the building of the core area of the BRI relies on joint efforts and collaboration from all parties.

Second, we have been constructing a large-scale westward opening-up channel. Practice has proven that this channel is fundamental and decisive. Currently, 118 bilateral international road transport routes have been opened, accounting for approximately one-third of the national total. The cargo-handling capacity of cross-border railways through Horgos Port and Alashankou Port has significantly increased. The construction of the third cross-border railway between China and Kazakhstan, the Ayagoz -Tacheng railway, has commenced, and the China-Kyrgyzstan Biedieli Port is expected to become operational this year. We will accelerate the construction of the China-Central Asia transportation corridor through a series of measures, strengthen port infrastructure, and further enhance our customs clearance and cargo handling capabilities.

Third, we have been fully leveraging the role of opening-up platforms. These platforms are a major comparative advantage for Xinjiang. Xinjiang currently has 18 foreign opening-up ports officially approved by the State Council and 56 national-level key opening-up and industrial development platforms across 14 categories, comparable to those in other regions. We will make good use of various opening-up platforms such as the China-Kazakhstan Horgos International Border Cooperation Center , comprehensive bonded zones, cross-border e-commerce pilot zones, and specialized import and export processing zones to vigorously develop the import and export processing trade, service trade, and cross-border e-commerce. We will promote high-quality and efficient foreign trade development and contribute Xinjiang's efforts to achieve a stable volume, improved structure, and increased market share in foreign trade.

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

Erkin Tuniyaz:

I would like to add one more thing here. The 8th China-Eurasia Expo will open in Xinjiang on June 26. We extend a sincere welcome to all our friends to join us for this occasion.

Xing Huina:

One last question due to time constraints.

Beijing Youth Daily:

The China (Xinjiang) Pilot Free Trade Zone (FTZ) is the nation's youngest pilot FTZ. A general plan issued by the State Council for establishing the Xinjiang pilot FTZ proposed 129 pilot tasks. What specific progress has been made in regard to these tasks? What's your plan for the next step? Thank you.

Sun Hongmei:

Thank you for your questions. After the approval of the China (Xinjiang) Pilot Free Trade Zone, the Xinjiang Uyghur autonomous region upheld the principle of planning before taking actions and formulated an implementation plan for the pilot FTZ construction based on the actual conditions of the autonomous region. We initiated 129 pilot tasks across the board, 15 of which have seen implementation. Our goal this year is to complete more than half of these tasks. Next, we will focus on three areas:

First, building an open and distinctive industrial system. The autonomous region will actively embrace the transfer of export-oriented industrial chains from the eastern region, especially those labor-intensive industrial chains. It will also expand market access to and increase the import of products from Central Asian countries and other neighboring countries, create a regional processing and distribution hub for international primary products, and establish industrial clusters for industries, such as specialty agricultural and sideline products, pharmaceuticals, refining and petrochemicals, textiles and garments, equipment manufacturing, and general aviation.

Second, constructing a comprehensive logistics hub connecting Europe and Asia. The autonomous region will build a national logistics hub in Urumqi based on its land port and airport, a land border port-type national logistics hub in Khorgos, and an international trade and logistics channel in Kashgar. At present, we are accelerating the construction of projects such as China-Europe Railway Express assembly centers, the Eurasia International Road Transport Center, and the Urumqi Airport Economy Zone. We are also promoting road-rail, rail-sea transport, and land port-airport interconnection, achieving compatibility of rules and mutual recognition of standards in regard to international transport and keeping the cross-border transport corridor more unimpeded. All these efforts have produced initial results. From January to April this year, a total of 435 China-Europe and China-Asia freight trains were operated in the Urumqi International Land Port Area, up 13.5% year on year; the number of freight trucks passed through the Khorgos highway port has more than doubled to 68,600; and the international cargo and mail throughput of the Urumqi Airport and the Kashgar Airport increased by more than three times. 

Third, enhancing the level of trade facilitation. The autonomous region will strive to cultivate cross-border e-commerce business entities and support the construction of border warehouses and overseas industrial parks. Seeking to innovate the supervision model related to foreign trade, we have adopted a "supplier-to-highway port" integrated customs clearance model, more than doubling the customs clearance efficiency. We will modernize the border ports at a faster pace and promote the smart port program. We will also strengthen economic and trade cooperation with the Central Asian countries and other neighboring countries and hold a successful China-Eurasia Expo. In this regard, Mr. Erkin Tuniyaz just extended his gracious invitation. Moreover, we will accelerate the construction of the Silk Road Economic Belt Legal-services District and promote more open and innovative financial services.

The Xinjiang pilot FTZ is now in its initial stage of construction. We believe that with the consistent implementation of reform and innovation measures, development momentum will be further unleashed. That concludes my introduction. Thank you.

Xing Huina:

Today's press conference concludes here. Thank you, speakers. Thank you to all friends from the media for your participation. Goodbye.

Translated and edited by Xu Xiaoxuan, Zhang Junmian, Liu Sitong, Wang Yanfang, Zhang Tingting, Liu Caiyi, Ma Yujia, Qin Qi, He Shan, Yan Bin, Wang Ziteng, Huang Shan, Li Xiao, Li Huiru, David Ball, Jay Birbeck, Tom Arnsten 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. Zhang Yupu, deputy secretary of the Communist Party of China (CPC) Ningxia Hui Autonomous Regional Committee and chairman of Ningxia Hui autonomous region

Mr. Chen Chunping, a member of the Standing Committee of the CPC Ningxia Hui Autonomous Regional Committee and executive vice chairman of Ningxia Hui autonomous region

Mr. Mai Yanzhou, a member of the Standing Committee of the CPC Ningxia Hui Autonomous Regional Committee and vice chairman of Ningxia Hui autonomous region,

Mr. Wang Li, vice chairman of Ningxia Hui autonomous region

Chairperson:

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

Date:

May 20, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 20th press conference in the series "Promoting High-Quality Development." Today, we have invited Mr. Zhang Yupu, deputy secretary of the Communist Party of China (CPC) Ningxia Hui Autonomous Regional Committee and chairman of Ningxia Hui autonomous region, to brief you on accelerating the construction of a modern and beautiful Ningxia by leveraging the pilot zone for ecological conservation and high-quality development in the Yellow River Basin, and to also take your questions. Also present today are Mr. Chen Chunping, a member of the Standing Committee of the CPC Ningxia Hui Autonomous Regional Committee and executive vice chairman of Ningxia Hui autonomous region; Mr. Mai Yanzhou, a member of the Standing Committee of the CPC Ningxia Hui Autonomous Regional Committee and vice chairman of Ningxia Hui autonomous region; and Mr. Wang Li, vice chairman of Ningxia Hui autonomous region.

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

Zhang Yupu:

Good morning. First of all, on behalf of the CPC Ningxia Hui Autonomous Regional Committee and the Ningxia regional government, I'd like to express my sincere gratitude to you for your long-term interest in and support for Ningxia's development. 

Ningxia has the reputation of being the "Treasure Land of West China" and the "Oasis Beyond the Great Wall." Thriving under the nourishment of the Yellow River, Ningxia is currently part of two major regional strategies: the large-scale development of the western region and the ecological conservation and high-quality development in the Yellow River basin. Caring a lot about Ningxia's development, General Secretary Xi Jinping has personally designated Ningxia's positioning as the pilot zone for ecological conservation and high-quality development in the Yellow River Basin, clarifying the goal of building a modern and beautiful Ningxia. In particular, he made the important instruction that socialism is achieved through hard work during his visit to Ningxia. These instructions serve as both encouragement and a call to duty for us. Now, I'll introduce relevant developments from four aspects.  

First, Ningxia's economy, although relatively small in scale, has seen rapid improvements in both quantity and quality. In 2023, Ningxia's GDP increased by 6.6%, ranking fifth nationwide. In the first quarter of this year, its GDP grew by 5.8%, marking the eighth consecutive quarter Ningxia has ranked among the top 10 in the nation. Notably, the growth rates for the value added of industrial enterprises above designated size and the total agricultural output have risen to the first and third place nationally, setting new historical records in Ningxia. Ningxia's leading industries have grown rapidly in recent years, with strong momentum for sustained development. For example, the total output of the modern coal chemicals industry has reached 30 million metric tons. Specifically, the output of the coal-to-oil industry has exceeded 4 million metric tons for three years running, ranking first nationwide; that of the coal-to-olefins sector stood at 4.7 million metric tons, representing one-fifth of the national total. Significant progress has also been made in deep processing. For instance, specialty silk and yarn textiles and high-end perfume ingredients have entered the international market. Meanwhile, Ningxia's industries have become more intelligent, eco-friendly and integrated. Consistently prioritizing digital economy as the primary growth driver for Ningxia's development, we have built Ningxia into the sole "dual-center" in west China — serving as both an integrated computing network hub and a new internet exchange center. Currently, more than 100 enterprises, including Amazon, China Mobile, Meituan, Westcloud Computing Technology Co., Ltd., have built data centers or application data centers in Ningxia for data storage. In addition, we are now expediting the development of some new industries, with the construction of quantum plus industrial internet platforms and online computing industrial parks progressing rapidly. Meanwhile, Ningxia's industries are becoming smarter at a faster pace, with smart casting, smart instruments and smart machine tools leading the nation. Moreover, accelerated efforts are being made in implementing a number of significant and promising projects in emerging industries, laying a solid foundation for Ningxia's future high-quality development. 

Second, we have delivered in ethnic unity, fostering a shared sense of purpose. As an autonomous region with a large ethnic minority population, we have always focused on forging a strong sense of community for the Chinese nation by advancing every respect of our work. In 2023, Ningxia became the first nationwide to have all its prefecture-level cities and counties built into demonstration zones for ethnic unity and progress. "Nourishing Yellow River waters, close ties with the Party and high regard for the general secretary" are views widely held among the people of all ethnic groups in Ningxia. Next, we will focus on the construction of the demonstration zone for forging a shared sense of community for the Chinese nation, aiming to solidify ethnic unity in Ningxia, thereby fostering stronger consensus and synergy towards realizing the great Chinese Dream.

Third, Ningxia has prioritized environmental protection and ecological conservation. As the sole provincial-level region entirely within the Yellow River Basin and fully included in the Three-North Shelterbelt Forest Program, Ningxia shoulders great responsibility in ecological conservation. In recent years, we have taken a series of measures to advance protection and management. For example, we have made every effort to win the protracted battle of protecting the Yellow River. The water quality for the section of the Yellow River within Ningxia has remained at Level II both upon entering and exiting the region for seven consecutive years. Notably, Yellow River management projects have been fully rolled out this year, continuously reinforcing the foundation of ensuring the river's peace, cleanliness and beauty. Another endeavor worth mentioning is our dedication to winning the critical battle of managing the northernly bend of the Yellow River. Ningxia once had a large area affected by desertification, but this situation has improved a lot after years of management efforts. Notably, the straw checkerboard method, invented by Ningxia people to tame desertification, has won the special prize of the State Scientific and Technological Progress Award and been selected as one of the United Nations' top 500 environmental protection cases, receiving widespread promotion. After the new round of national desertification treatment task was assigned, we have intensified efforts across the board to manage 8.2 million mu (546,667 hectares) of desertified land within Ningxia. We had planned to complete the task by 2030, but now we're on track to achieve all the goals three years ahead of schedule, thus continuously improving Ningxia's ecological environment.

Fourth, regarding the well-being of our citizens, we have achieved steady improvement. In light of Ningxia's relatively low per capita income, we have consistently prioritized employment and income growth as our foremost responsibilities and most stringent indicators. Approximately 80% of our financial resources are allocated to people's livelihoods each year. In 2023, we increased our educational enrollment quota by over 30,000 students, added more than 2,000 new hospital beds, and solved housing problems for over 20,000 new urban residents. Childcare subsidies have been implemented across the region. Notably, the region's total population has maintained positive growth for 10 consecutive years. The income of all residents has outpaced GDP growth for two consecutive years, exceeding the national average growth rate. We have also made significant progress in modern lifestyles. For example, we have established two national-level demonstration zones for "Internet + Education" and "Internet + Healthcare." By sharing digital resources, we have further improved the quality of life for our people.

In the future, we will continue to focus on building a pilot zone for ecological protection and high-quality development in the Yellow River Basin. We aim to create a national comprehensive demonstration zone for new energy, a demonstration zone of the modern coal chemical industry, and a pilot zone for the green development of agriculture. Our goal is to establish a world-renowned wine capital and a Chinese computing power capital here, accelerate the development of new quality productive forces, and lay a stronger foundation for the comprehensive development of a beautiful new Ningxia. By doing so, we will contribute to writing a new chapter in the large-scale development of the western region.

That's all for my general introduction. Now, I welcome you to raise questions.

Shou Xiaoli:

Thank you, Mr. Zhang Yupu, for your introduction. Now, let's open the floor to questions. Please identify your news organization before asking your question.

People's Daily:

The TV series "Minning Town" vividly showcases the significant achievements of the cooperation between Fujian province and Ningxia Hui Autonomous Region. Could you please share any new highlights and measures Ningxia has planned to promote further cooperation with Fujian? Thank you.

Zhang Yupu:

Thank you for your attention to cooperation between Fujian and Ningxia. This collaboration is a model of east-west cooperation, personally initiated and directly promoted by General Secretary Xi Jinping. Over the past 30 years, under the guidance of the general secretary and with the strong support and assistance of Fujian province, this work has achieved tangible results. First, we have accomplished the "two-million" goals: relocating 1 million people and lifting 1 million people out of poverty. Building on this foundation, Fujian-Ningxia cooperation has achieved numerous specific outcomes. For instance, in terms of industrial development, 12 Fujian-Ningxia industrial parks have been constructed, and 119 rural revitalization demonstration villages have been established. Currently, there are 6,000 Fujian-based enterprises and merchants operating in Ningxia, with over 4,000 cooperative projects between the two sides. In talent training, Fujian has cultivated more than 30,000 professional and technical personnel for Ningxia over the years. Institutions like Scud Technical School and Minjiang Applied Technology College have established themselves in Ningxia. Additionally, the total number of laborers Ningxia has sent to Fujian has reached 320,000. Minning Village, which was personally named by the general secretary, has now developed into Minning Town with a population of 66,000. At the time of its establishment, its per capita income was only 500 yuan. Now, it has reached over 17,800 yuan, marking a 35-fold increase, which is a significant transformation. Minning Town was the first to turn "sandy beaches" into "golden beaches." The TV series "Minning Town" vividly reflects many touching stories from this process. It has been broadcast in more than 50 countries and regions and has received widespread acclaim.

Going forward, we will continue to uphold the guiding principles of poverty alleviation, draw on and apply the experience from the Green Rural Revival Program in Zhejiang Province, further improve the Fujian-Ningxia cooperation mechanism, and strive to achieve the goal of bringing the per capita income of farmers in the region, especially those lifted out of poverty, to the national average level within three years. We also aim to surpass the national average urbanization rate, reaching 70%. At the same time, we will focus on promoting the coordinated and harmonious development of urban and rural areas, mountains, and rivers in Ningxia, composing a successful "trilogy" of poverty alleviation, rural revitalization, and common prosperity in Ningxia. Thank you!

Beijing Youth Daily:

We have noticed that in recent years, Ningxia has introduced a large number of internet companies, and the development of data centers has been very rapid. How does Ningxia plan to seize the strategic opportunity of the national "East Data, West Computing" project to better promote the high-quality development of its digital economy? Thank you.

Zhang Yupu:

This question is for Mr. Mai Yanzhou, please.

Mai Yanzhou:

Thank you for your attention to Ningxia's digital economy. Ningxia is a treasure land in the western part of China. We are developing the digital economy according to local conditions, making it a new quality productive force. Ningxia has the foundation, the conditions, and the results.

First, superior natural conditions have enhanced the attractiveness of developing Ningxia's digital economy. The construction of the nation's first comprehensive demonstration zone for new energy has provided Ningxia with abundant green electricity supply. With its cool and dry climate, and an average annual temperature of 8.8 degrees Celsius, Ningxia is one of the most suitable regions in the country for constructing large-scale data centers.

Second, a solid industrial foundation has strengthened support for developing the digital economy. We have established the first batch of 10,000-GPU scale intelligent computing bases in the country, leading in intelligent computing capabilities nationwide. We have also built the first batch of artificial intelligence chip adaptation bases in the country, which can provide testing, validation, and other services for domestic chips. Last year, the number of standard data center racks grew rapidly by 37%.

Third, diverse application scenarios have strengthened the driving force for the development of the digital economy. As Mr. Zhang Yupu said, Ningxia has built a smart education platform across the region, which allows students from both urban and rural areas to take the same high-quality classes and realize the dream of attending prestigious schools for the children in mountainous areas. Ningxia has also launched a remote digital diagnosis and treatment center, enabling residents to connect with medical experts from all over the country at their doorstep and realize the ability to receive medical services provided by healthcare facilities across the country while staying in Ningxia. We have taken the lead in achieving full e-commerce coverage in rural areas and have released large AI models in fields such as medical health and production safety, promoting the building of the computing power ecosystem at a faster pace.

Next, we will take extraordinary measures to support extraordinary industries and achieve extraordinary development, make every effort to build "the capital of China's computing power," and give Ningxia's contribution to the construction of digital China.

In terms of the "Eastern Data and Western Computing" initiative, we plan to build a number of green data centers and establish a national large-scale intelligent computing base as soon as possible. In this way, Ningxia's electric power will be transformed into computing power for the entire country, accelerating the growth of the digital economy.

In terms of data elements, we have accelerated the implementation of industrial digitalization, launched 100 key application projects, promoted the intelligent upgrading of traditional industries, and enabled various sectors to embrace digitalization.

Regarding artificial intelligence, we are comprehensively carrying out the AI+ action and striving to create a national artificial intelligence innovation application pilot area. We are increasing the open application of data and scenarios and endowing relevant systems with various intelligences to make them smarter.

In September this year, we will hold the third "western digital valley" computing power industry conference, which will host more content and surprises. We warmly welcome friends from all sectors to join us for this grand event. Thank you!

CCTV:

After the "Two Sessions" this year, there has been much discussion about new quality productive forces. How will Ningxia promote the construction of a modern industrial system and cultivate and develop new quality productive forces? Thank you.

Zhang Yupu:

I will invite Mr. Chen Chunping to answer this question.

Chen Chunping:

Mr. Zhang Yupu has already briefly introduced the high-quality development of Ningxia's industries. In recent years, Ningxia has focused on high-quality development, accelerating the development of its industries. We have initially established a modern industrial system supported by the "Six New Industries, Six Specialties, Six Excellence + N" framework. The "Six New Industries" refers to new industries represented by equipment manufacturing and new materials. The "Six Specialties" refers to agriculture with distinctive local features represented by wine and goji berries. The "Six Excellence" refers to modern service industries represented by cultural tourism and exhibitions. "N" refers to high-tech industries like advanced computing power and hydrogen energy. Next, we will accelerate the development of new quality productive forces with Ningxia characteristics according to real local conditions. We will focus on the following three aspects: 

First, we will strengthen the deep integration of scientific and technological innovation with industrial innovation. By aligning innovation chains with industrial chains, we have implemented a gradient cultivation plan for 100 technology-based enterprises, 100 innovative enterprises, and 100 model enterprises. We have independently developed and promoted advanced technological products such as monocrystalline silicon rod rolling, transmission reducer assembly, and industrial sapphire manufacturing. And we have created a number of champions and promoted innovation achievements from the "laboratory" to the "production line," making innovation the "largest incremental" for the development of new, quality, productive forces.

Second, we will accelerate the iteration and upgrade of traditional industries. Traditional sectors of coal, electricity, non-ferrous metals, and metallurgy hold a substantial share in Ningxia, accounting for over 60% of the industrial added value. The region has facilitated the development of these traditional industries through equipment renewal, technological empowerment, and low-carbon transformation. For instance, the modern coal and chemistry industries offer advanced coal liquefaction and gasification technologies to convert "coal" into "liquids" and "gas," producing coal-based products like olefins, methanol, spandex, aramid, and graphite so as to achieve value doubling and upgrading. Currently, we are building a 200-billion-level modern chemical industry cluster and a 100-billion-level light industry and textile industry cluster, reshaping the new system of traditional industries and bringing their new advantages to traditional industries.

Third, we will accelerate the cultivation and expansion of strategic emerging industries and a forward-looking layout for future industries. We are speeding up the formulation of the implementation guidelines for Ningxia's new, quality, productive forces. On one hand, we are implementing major projects such as doubling the industrial and manufacturing sectors and upgrading industrial chains. The projects have connected photovoltaic bases and wind power stations with data centers and manufacturing workshops, promoted green energy development and green power supply, and integrated high-end manufacturing, intelligent computing power, and new materials innovation. This will result in the building of three 100-billion-level industrial clusters of new energy, equipment manufacturing, and digital information, as well as a 200-billion-level industrial cluster in new materials. On the other hand, we are also accelerating the layout of future industries such as artificial intelligence, advanced computing power, new energy storage, hydrogen energy, and quantum technology, continuously nurturing new industries, new business models, and new growth drivers. Thank you.

National Business Daily:

When talking about Ningxia, people often think of local specialties like wine and goji berries. Could you introduce the development of Ningxia's competitive agricultural industries that draw on local strengths? Thank you.

Zhang Yupu:

Thank you for giving me an opportunity to introduce the development of Ningxia's agricultural industries. "The Yellow River enriches Ningxia" primarily through agriculture, forestry, animal husbandry, and fishery, earning Ningxia the reputation of being a "Saishang Jiangnan" (the place to the north of the Great Wall, which is as beautiful as south of Yangtze River) and a "land of fish and rice."

In recent years, we have leveraged Ningxia's unique resource advantages by maximizing strengths, mitigating weaknesses, and turning weaknesses into strengths to accelerate the development of Ningxia's specialty agricultural industries. We have identified six key industries: wine, goji berries, milk, beef, Tan sheep, and vegetables. Due to time constraints, I will focus on three of them today.

First, leveraging the golden climate zone, we have vigorously developed the wine industry. Ningxia is recognized both domestically and internationally as a prime wine-producing region. The industry has experienced rapid growth in recent years. In terms of volume, Ningxia's wine production from chateaus has now risen to the top position in the country. To put it figuratively, one of every two bottles of domestically produced chateau wine comes from Ningxia. Currently, our products are sold in more than 40 countries and regions and have won over 1,000 international awards. These days, the TV series "Hometown of Stars," broadcast during prime time on CCTV-1, tells the story of the development of Ningxia's wine industry. Notably, a recently released China-France joint statement mentioned promoting China's accession to the International Organization of Vine and Wine (OIV). Ningxia will seize this opportunity and rise to the challenges, accelerating the development of its wine industry and striving to contribute to bringing Chinese wine to the world.

Second, relying on the golden planting belt, we have vigorously developed the goji berry industry. Ningxia is the origin of goji berries in the world, and Ningxia goji berries are the only ones recognized by the state as having both medicinal and edible properties. As the saying goes: "China's goji berries are peerless in the world, and Ningxia's goji berries are the best in China." We have made significant breakthroughs in quality improvement and deep processing in recent years. We established the China Goji Berry Research Institute and the National Goji Berry Product Quality Testing and Inspection Center to ensure product quality. Ningxia has led the formulation of over 50% of the national standards for goji berry products, and developed more than 120 new products in the categories of medicines, foods, beverages, health products, and cosmetics. Currently, 1 kilogram out of every 8 kilograms of goji berries in China comes from Ningxia, making it the country's largest goji berry distribution center.

Third, relying on the golden milk source belt, we have vigorously developed the milk industry. Ningxia is a national high-end dairy cattle breeding center and dairy product production hub. The milk produced in Ningxia boasts high output and excellent quality, with several indicators exceeding EU standards. The average milk yield per cow in Ningxia is 300 kilograms higher than the national average. Recently, market changes have impacted the dairy industry and dairy product companies. To ensure industrial security and sound development, we have implemented policies and measures to guarantee steady and sustainable growth. Currently, Ningxia has over 900,000 dairy cows, maintaining the highest growth rate in the country for five consecutive years. Fresh milk production accounts for about 10% of the national market. Besides increasing production capacity, we focus on technological innovation and have built the world's first fully smart dairy factory to achieve the goal of employing only 100 workers to produce 1 million tons of liquid milk annually and create an output value of 10 billion yuan.

Next, we will further expand and strengthen our advantageous specialty industries, allowing consumers to enjoy more and better "Ningxia-branded" products.

That's all for my response. Thank you!

China Daily:

We noted that Ningxia has held the Conference on Promoting the High-Quality Development of the Private Economy and the Comprehensive Improvement of the Business Environment for two consecutive years and has introduced a series of measures. Could you please outline Ningxia's solid progress in optimizing the business environment? What measures will be taken in the next step? Thank you.

Zhang Yupu:

I'll invite Mr. Wang Li to answer your questions.

Wang Li:

In recent years, Ningxia has consistently prioritized optimizing the business environment as the top priority for high-standard opening-up and high-quality development. We have achieved positive results by benchmarking against international first-class standards and extensively drawing on the experiences and practices of advanced regions at home and abroad. The proportion and growth rate of private investment in Ningxia are among the highest nationwide. Yinchuan city has been selected as a benchmark city for China's business environment, and in the national business environment evaluation organized by the National Development and Reform Commission, Ningxia has seen 12 indicators rank among the top nationwide. We deeply understand that there is always room for improving the business environment. Moving forward, Ningxia will uphold the concept that "a good business environment is the greatest competitiveness" and strive to build an attractive and competitive investment hub in the western region.

In terms of government services, we have endeavored to enhance convenience. After years of effort, 95.3% of government services in Ningxia can be handled online, and the time required for business registration has been reduced to within three hours. Integrated government services and administrative licensing list management are at the forefront nationally. This year, we have significantly advanced our digital government initiatives. We have fully launched "one-stop government services" and established project approval mechanisms, including "one visit only, handling within a time limit, and reducing required materials and procedures." Additionally, we have upgraded the My Ningxia app, enabling more services to be conducted via smartphone and QR code. These efforts provide faster approvals, smoother processes, and higher efficiency, greatly assisting both the public and businesses.

In terms of supporting the development of enterprises, we have strived to increase their satisfaction. The business environment is a form of soft power, while enterprise satisfaction is a critical standard. The Ningxia government always treats entrepreneurs as family, considers the affairs of enterprises as its own, and ensures that whenever an enterprise has a need, the government acts immediately. This year, we launched a three-year action plan for the high-quality development of the private economy and systematically introduced ten mechanisms to serve and support the private sector. For example, for small and micro enterprises temporarily facing difficulties, we have implemented measures to ensure that water, electricity, gas, and heating supplies are not interrupted due to arrears. We have fully implemented tax and fee reduction policies to help enterprises solve problems, reduce costs, and take specific steps to make them feel safe, assured, and comfortable in Ningxia.

In terms of building a business environment, we have strived to make the market fairer. Ningxia has always been committed to creating a market environment of fair competition and fully implementing the negative list system for market access. In recent years, newly registered market entities have increased rapidly, with a 17.2% increase in 2023. This year, we will continue to improve the law-based business environment, further streamline the approval process for market access, and rectify practices involving unequal treatment of enterprises on a case-by-case basis. Our goal is to make the market environment fairer and to create the best possible ecological environment for the development of enterprises.

That's all for my introduction, thank you. 

The Poster News APP:

As the country's first demonstration zone for new-energy comprehensive construction, Ningxia has continuously promoted the development of clean and new energy industries, and the utilization rate of new energy has exceeded 97% for five consecutive years. With a view to the dual carbon goals of peaking carbon emissions and reaching carbon neutrality, how does Ningxia promote the transformation of energy use? Thank you. 

Zhang Yupu:

Ok, thank you. Let's invite Mr. Chen to answer your question. 

Chen Chunping:

Thanks for your question. It addresses a widely discussed issue. Ningxia has unique resources, endowments, and advantages in developing new energy and promoting energy transformation. For example, Ningxia has 32.1 billion metric tons of coal reserves, ranking ninth in China, and 5 billion metric tons of silica reserves, ranking first nationwide. Its solar and wind energy resources are abundant, with annual sunshine hours exceeding 2,800. Ningxia has three major wind belts, including the Helan Mountains, which are highly suitable for developing photovoltaic and wind power. Based on our resource advantages, we are focusing on the dual carbon goals and fully implementing new national energy security strategies. We are upgrading traditional energy sources while simultaneously developing and expanding new energy sources, accelerating the construction of a comprehensive new energy demonstration zone. The clean and efficient utilization of traditional energy sources such as coal has reached a leading level in China, and the total installed capacity of new energy sources such as photovoltaic and wind power has exceeded half. Innovation and development are primarily achieved in the following three aspects:

First, we guarantee the transformation and development of the energy sector through mechanism innovation. Over 20 policies and measures have been introduced for new energy management, construction, and grid integration. Reforms in energy consumption rights and carbon emission rights have been carried out, maximizing resource allocation efficiency and establishing an institutional framework for the transformation and development of new energy.

Second, we drive the transformation and development of energy through technological innovation. We focus on the clean and efficient use of coal, new energy storage and other fields, concentrating on the development and application of new technologies, processes, and equipment. Our independently developed technologies, such as renewable hydrogen carbon reduction and smart centralized heating, have reached industry-leading levels. These advanced technologies have established a solid "green foundation" for the transformation and development of energy.

Third, we promote the transformation and development of energy through industrial innovation. Our focus is on the construction of "one chain, one base and three channels. The "one chain" refers to the entire new energy industry chain. We have built a photovoltaic industry chain from "raw silicon" to "photovoltaic modules," a wind turbine industry chain from "parts" to "complete machine assembly," and an energy storage industry chain from the "positive and negative electrodes" of batteries to power station construction. The annual growth rate of the new energy equipment manufacturing industry exceeds 25%. "One base" refers to a clean energy production base. We are building a national large-scale wind power and photovoltaic base, along with major projects like a pumped storage power station and hydrogen production facilities. By the end of the 14th Five-Year Plan period (2021-2025), our installed capacity of new energy is expected to reach 55 million kilowatts, reducing carbon dioxide emissions by more than 65 million metric tons annually. The "three channels" refers to three west-to-east power transmission channels. The two completed transmission channels from Ningxia to Zhejiang and Ningxia to Shandong have transmitted a cumulative total of 700 billion kilowatt-hours of electricity, leading the nation in utilization levels. Exported electricity already accounts for 40% of the region's annual electricity generation. Another transmission channel from Ningxia to Hunan, the country's first domestic transmission channel based on new energy, is under construction. Once completed, the annual electricity transmission in our area will exceed 100 billion kilowatt-hours. At that time, 1 out of every 3 kilowatt-hours of electricity generated in Ningxia will be green energy, and 1 out of every 2 kilowatt-hours will be transmitted out of the region. It can be said that thousands of lights in the eastern and central regions will be illuminated by a steady supply of "Ningxia green electricity." Thank you!

Science and Technology Daily:

In recent years, Ningxia has intensified its efforts in scientific and technological innovation, achieving several landmark achievements, including coal-to-liquid technology. Could you brief us on Ningxia's progress in technological innovation, talent acquisition, and development? Thank you.

Zhang Yupu:

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

Mai Yanzhou:

Thanks for your interest. The coal-to-liquid technology mentioned by the reporter involves converting coal into oil through the chemical process of indirect liquefaction. This technology has broken the foreign monopolies and was awarded the first prize in the State Scientific and Technological Progress Awards. It is also a representative example of Ningxia's scientific and technological innovation. In recent years, we have vigorously implemented the innovation-driven development strategy, firmly grasping scientific and technological innovation, which is crucial to overall development. We have strengthened our innovative capabilities, cultivated innovative entities, and nurtured an innovation-friendly ecosystem. Scientific and technological innovation is becoming the defining feature of Ningxia's high-quality development.

In terms of R&D expenses, we regard science and technology as our primary productive force and have established diversified investment channels. With fiscal funds as the guiding force, corporate investment as the mainstay, and financial markets as the support, we have set up a government science and technology guaranty fund and developed financial products like ningkedai (Ningxia sci-tech loans). These efforts have effectively addressed the difficulties and expensive costs of financing faced by sci-tech innovation enterprises, driving an annual average growth rate of over 14% in R&D expenditures.

In terms of cultivation of sci-tech innovation entities, we reinforce the principal role of enterprises in technological innovation and continuously improve our incubation systems. On the one hand, we pay close attention to platform construction. Last year, 32 science and technology innovation platforms, including Liupanshan Laboratory, were newly built, bringing Ningxia's total number of innovation platforms to nearly 1,000. We have launched a science and technology innovation center in Shanghai. In other locations across the country, we have established numerous sci-tech innovation enclaves where we conduct R&D work with the results being applied in Ningxia. The Ningxia Institute for Advanced Study, one of the first such institutes jointly built by the Ministry of Education and autonomous regions, has cooperated with 28 renowned domestic universities and is making every effort to build a high-end platform for talent cultivation and commercialization and application of scientific and technological research outcomes. On the other hand, we pay close attention to enterprise cultivation. We select 300 sci-tech innovation model enterprises each year, driving continuous growth in the autonomous region's sci-tech sector. The number of national high-tech enterprises has increased by over 20% annually.

In terms of talent acquisition, we remain committed to considering talent as our primary resource and continue to enhance openness and cooperation. We have built the country's first leading demonstration zone for science and technology cooperation between the eastern and western regions, continued to build partnerships for sci-tech innovation, and conducted joint innovation with more than 800 research institutions across the country. We have implemented a talent cultivation and introduction project, attracting over 150 academicians and more than 9,200 sci-tech professionals in various fields over the past five years, reversing the trend from talent outflow to inflow.

In terms of application of sci-tech achievements, we regard innovation as our primary driver of growth, reinforce coordination between industries, universities, research institutes, and end-users, and conduct scientific and technological research on major projects addressing bottlenecks hindering high-quality development. The high-end equipment components developed by Ningxia enterprises have played an active role in China's deep-sea and lunar exploration projects. Several advanced technologies, such as water-saving drip irrigation and desertification prevention and control, have been adopted globally.

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

CNR:

As we know, Ningxia is relatively short of water resources, with per capita water resources less than one-third of the national average. How did Ningxia overcome this bottleneck in its development process? Thank you.

Zhang Yupu:

I will answer this question. Water is a major issue in Ningxia. As we all know, Ningxia consists of arid and semi-arid areas, and per capita water resources are significantly lower than the national average. In the course of high-quality development, we have always regarded water resources as the core resource and key element of Ningxia's development. Especially, continuous industrial and economic development has prompted increasing water consumption, which is directly related to Ningxia's future development. Therefore, we have vigorously implemented the principle of planning urban development, land use, population growth, and industrial structure based on water resources as the determinant. This work has achieved remarkable results. Specifically, the principle can be expressed vividly, as the general secretary once said, "make the right amount of croutons for the soup." As the first and currently the only provincial region in the country to implement this principle all over its jurisdiction, we took the lead in issuing a specific implementation plan. We focused on water conservation, water control, and water usage, identifying 40 evaluation indicators, 80 key tasks, and 100 water conservancy projects, clearly defining the overall arrangement, goals and policies. After unremitting efforts, this work has achieved phased results. For example, we have strengthened the rigid constraints on water resources and implemented comprehensive management from the source to the tap, creating a good atmosphere with people paying attention to water saving in all circumstances. By the end of 2023, all prefecture-level cities in Ningxia had met national standards for water-saving cities. Ningxia's water usage per 10,000 yuan of GDP and water consumption per 10,000 yuan of industrial value added have met the objectives set by the 14th Five-Year Plan ahead of schedule. Additionally, there are some landmark advances. We were the first to create a demonstration zone for internet-facilitated urban and rural water supply, the first to establish an ecological compensation mechanism with the upper and lower reaches of the Yellow River Basin, and the first to realize cross-provincial water right transactions. Our Ningdong Energy Chemical Industry Base completed China's first inter-provincial water rights transaction with the Aba Tibetan and Qiang autonomous prefecture in Sichuan, achieving excellent results and marking a new step towards marketization. A national on-site meeting on the high-quality development of rural water supply was recently held in Ningxia. The region's experience in planning urban development, land use, population growth, and industrial structure based on water resources has also been included in the training materials for senior officials nationwide. Notably, our water-saving experience was shared at the United Nations Water Conference.

This year marks the 10th anniversary of the principle of planning urban development, land use, population growth, and industrial structure based on water resources being proposed by General Secretary Xi Jinping. This year is also a new starting point, from where we will accelerate the construction of the demonstration zone for implementing this principle to provide safer and more reliable water security for Ningxia's high-quality development. Additionally, we will strive to leverage the role of the demonstration zone to provide useful water-saving experiences for the whole country. Thank you.

Now TV:

The State Council approved that, starting May 27, eligible individuals from certain cities in Ningxia can apply for individual travel permits to visit Hong Kong and Macao. How is the application process going so far? In what areas does Ningxia autonomous region hope to further cooperate with Hong Kong to promote cultural and tourism exchange, ultimately boosting the economic development of both regions? Thank you.

Zhang Yupu:

Thank you, reporter from Hong Kong. Let me take your questions. Since the policy's introduction, it has been very well received and promises mutual benefits for both Hong Kong and Ningxia. We have organized a series of activities to implement the new policy. Several groups of people from Ningxia have traveled to Hong Kong for tourism and vacation, and they have shared very positive experiences. The first airline route we resumed after the pandemic was to Hong Kong. We now have two flights operating weekly at full capacity. Additionally, Ningxia and Hong Kong share some special connections. First, as I mentioned earlier, Ningxia's wines are exported to over 40 countries and regions, with the largest market being Hong Kong. Second, 90% of Ningxia's cool-weather vegetables, particularly Ningxia choy sum, are supplied to Hong Kong and are enjoyed by its residents.

Looking ahead, we will leverage this policy to further strengthen the existing strong friendship and exchange we have established in the past as well as enhance mutual visits. Many Hong Kong compatriots haven't had the opportunity to visit Ningxia yet. We hope that through this policy more of them will come and learn about Ningxia. On behalf of Ningxia's over 7.2 million people, I sincerely wish happiness and prosperity for the people of Hong Kong. Thank you.

Jinan Times APP:

Ningxia is an important node in the Belt and Road Initiative (BRI). Can you elaborate on the key measures Ningxia has implemented in recent years to expand its openness to the world? Thank you.

Zhang Yupu:

I will invite Mr. Wang to take this question.

Wang Li:

Historically, Ningxia was an important commercial hub on the northern route of the eastern segment of China's ancient Silk Road, witnessing the once-thriving Silk Road since the Qin (221-206BC) and Han (206BC-AD220) dynasties. In recent years, based on national needs and Ningxia's capabilities, we have leveraged the BRI as a major opportunity to foster high-quality development through high-level openness.

Talking about building high-energy open platforms, we actively participate in and contribute to BRI cooperation. We have received approval to establish the nation's first inland opening-up pilot economic zone. We have also successfully hosted six China-Arab States Expos and three China (Ningxia) International Wine Culture and Tourism Expos. Our international trade network has expanded to cover over 170 countries and regions, and we've established sister city relationships with 62 cities worldwide. Ningxia's "circle of friends" continues to grow.

In terms of developing a high-quality open economy, we stick to the approach of combining "bringing in" and "going out" to create open platforms that integrate comprehensive bonded zones, foreign trade bases and specialized parks. Through implementing the "Three-Year Foreign Investment and Five-Year Foreign Trade Doubling Plan," we've attracted nearly 1,000 foreign-funded and foreign-trade enterprises to invest and establish factories in Ningxia. Over the past decade, the actual use of foreign capital grew at an average annual rate of 8.2%, and the total import and export volume increased by 6.3% annually.

In terms of facilitating corridors for high-level opening-up, we focus on smoothing land routes, expanding air routes and improving customs clearance efficiency at ports. We maintain regular rail-sea intermodal trains from Yinchuan to Tianjin Port and Qingdao Port and have stable direct flights to international destinations like Dubai and Hong Kong. The construction of the Yinchuan National Comprehensive Freight Hub and National Backbone Cold Chain Logistics Base has accelerated, continuously strengthening Ningxia's hub status and channel functions. Additionally, advancements in "East Data, West Computing," west-to-east gas transmission and west-to-east power transmission projects have reinforced Ningxia's position as a strategic channel and its role in promoting China's westward opening-up.

Moving forward, Ningxia will continue to seize the major strategic opportunities brought by the BRI and the large-scale development of China's western region. We will ensure the successful hosting of the China-Arab States Expo, focusing on building a comprehensive platform for economic and trade cooperation, commercial mediation, legal services and cultural exchanges between China and Arab states. Taking China's application to join the International Organization of Vine and Wine as an opportunity, we will accelerate the construction of the National Open Development Comprehensive Pilot Zone for Grape and Wine Industry, striving to enhance the international reputation of Chinese wine. Our goal is to make Ningxia wine a "purple bridge" for China to engage with the world and for the world to understand China.

That's all from me. Thank you.

Shou Xiaoli:

Let's move on to the last question.

Zhinews of Shenzhen Satellite TV:

Ningxia entices people who are looking for a vacation destination. Following up on the discussion about enriching mutual exchange with compatriots from Hong Kong and Macao, could you elaborate on the unique features and advantages of Ningxia's culture and tourism industries? What measures will be taken to enhance its appeal to tourists in the future? Thank you.

Zhang Yupu:

Thank you. Let me introduce the basic situation of tourism in Ningxia. Ningxia boasts rich cultural and tourism resources with distinctive features and is among the first batch of national all-for-one tourism demonstration zones. However, there is still room for improvement due to insufficient development and promotion. Today, I will briefly introduce Ningxia's tourism sector from both historical and natural perspectives.

From a historical perspective, although the Ningxia Hui Autonomous Region was established relatively recently, it has a profound history and culture. For example, Ningxia is home to the Shuidonggou site, which dates back over 40,000 years. Every significant historical period from then to the present day has left behind iconic historical and cultural symbols in Ningxia.

For instance, Ningxia houses Great Wall ruins from six dynasties, spanning from the Warring States period to the Ming dynasty. These well-preserved ruins are often called the "Museum of China's Great Walls." Another notable feature is the water diversion project for irrigation from the Yellow River, which began during the Qin dynasty and is still in use today. This project is recognized as a "World Heritage Site of Irrigation Projects." Additionally, Ningxia's grand Western Xia Imperial Tombs, known for their unique styles, are actively being proposed for inclusion in the World Heritage List. Moreover, Ningxia is home to numerous old revolutionary sites, such as "Jiangtaibao," where the Red Army's Long March ended victoriously. Through these historical relics, we can appreciate the profound significance of the Yellow River, Great Wall, Silk Road, and Red cultures.

From a landscape perspective, although Ningxia is not very large, it has abundant natural and ecological resources. Specifically, it boasts a complete system of mountains, waters, forests, farmlands, grasslands, and deserts, earning it the nickname "China's miniature bonsai of tourism."

To explore the mountains, we have the Helan Mountains, one of the seven important geographical boundaries dividing the monsoon and non-monsoon zones, as well as internal and external drainage areas. The Helan Mountains are unique, featuring rock paintings dating back 10,000 years, known as the "fossil of early human art." Another notable mountain is Liupan Mountain, familiar to many. Liupan Mountain is called the "victory mountain" of the Red Army's Long March, where Chairman Mao wrote the famous lines, "He who has never been to the Great Wall is not a true man." Both of these mountains are candidates for national park status.

Regarding waters, we have two prominent ones, both designated as national 5A-level scenic spots. The first one is the Yellow River Canyon, known for its nine mighty rivers, hundreds of towers, and majestic landscape. The other one is the Shahu Lake scenic area, where water meets desert, and birds and fish coexist harmoniously. Additionally, Yinchuan is home to an international wetland and over 200 lakes of various sizes, which are extremely valuable in the northwestern region. These green mountains and lush waters are being transformed into invaluable assets. 

I would like to particularly highlight desert tourism in Ningxia. Wang Wei, a Chinese poet of the Tang dynasty, described Ningxia as "a smoke hangs straight on the vast desert, a sun sits round on the endless stream." In contrast, another Tang dynasty poet, Wei Chan, wrote, "At the foot of Helan Mountains, orchards flourish, making the region known as Jiangnan beyond the Great Wall." These depictions illustrate two entirely different scenes. Therefore, some say Ningxia is "half prosperous and half desert." In fact, with the rapid development of the sand economy, sand industry, and desert tourism, this "half desert" has created its own unique prosperity. Initiatives such as creating forests, grasslands, and oases, as well as developing photovoltaic farms, are transforming people's impressions and perceptions of Ningxia.

In Ningxia's Shapotou scenic area, you can experience a remarkable side of the landscape. This area features not only cozy homestays but also five-star desert hotels and desert-themed resorts. When night falls, you can comfortably enjoy sand treatments and sand baths while gazing at the starry sky and reflecting on the passage of time. As a result, this scenic area is renowned as "China's most beautiful desert" and the "hometown of stars." The scenic area was recently proposed for designation as a national-level tourist and resort zone, and the results have been released to the public. This designation will further boost Ningxia's desert tourism.

Since the beginning of this year, to enhance the quality of Ningxia's tourism sector, we have carefully listened to tourists' feedback and launched a comprehensive project to upgrade and innovate the cultural and tourism industries. The project focuses on six aspects: catering, accommodation, transportation, sightseeing, entertainment, and shopping. For example, to ensure tourists enjoy quality dining and lodging, we have initiated a special campaign to regulate prices and enhance the quality of the catering sector. We have also established a cluster of 15 branded hotels in the city, set to open this month. Additionally, numerous resorts have been built in rural areas. To enhance tourists' travel experiences, we have developed several self-drive tour routes, including those along "Route 66." We have also launched an online tourism service platform, "Smart Tourism in Ningxia," and released an upgraded version of "The 21 Scenic Sites of Ningxia." Recently, a national meeting on the development of the tourism sector was held, and we will seize this opportunity to accelerate the high-quality development of Ningxia's tourism industry.

Finally, we sincerely welcome friends and tourists from home and abroad to visit Ningxia and fully immerse themselves in its delicious food, fine wines, and picturesque scenery. Thank you all!

Shou Xiaoli:

Thank you, Mr. Zhang. Thank you to all the speakers. I also want to express gratitude to all journalists for your participation. Today's press conference concludes here. Goodbye, everyone. 

Translated and edited by Xu Xiaoxuan, Zhang Rui, Ma Yujia, Mi Xingang, Yang Xi, Yan Bin, Li Huiru, Yan Xiaoqing, Wang Qian, Huang Shan, Zhang Junmian, Wang Yiming, Liu Sitong, He Shan, Cui Can, Jay Birbeck, Rochelle Beiersdorfer and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Wang Qingxian, deputy secretary of the Communist Party of China (CPC) Anhui Provincial Committee and governor of Anhui province

Mr. Fei Gaoyun, a member of the Standing Committee of the CPC Anhui Provincial Committee and executive vice governor of Anhui province

Mr. Sun Yong, vice governor of Anhui province

Ms. Chen Jun, director of the Anhui Provincial Development and Reform Commission

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date: 

May 16, 2024

Chen Wenjun:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 19th press conference in the series "Promoting High-Quality Development." Today, we are pleased to be joined by Mr. Wang Qingxian, deputy secretary of the Communist Party of China (CPC) Anhui Provincial Committee and governor of Anhui province, who will brief you on the topic of "charting a new course for Anhui's high-quality development in the new era by pursuing innovation-driven growth," and answer your questions. Also present today are Mr. Fei Gaoyun, a member of the Standing Committee of the CPC Anhui Provincial Committee and executive vice governor of Anhui province; Mr. Sun Yong, vice governor of Anhui province; and Ms. Chen Jun, director of the Anhui Provincial Development and Reform Commission.

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

Wang Qingxian:

Good afternoon, everyone! Welcome to this press briefing. First of all, I would like to extend my sincere admiration and profound gratitude to you for your interest in and reporting of Anhui. Your efforts in fostering a climate of positive public opinion for Anhui's high-quality development are deeply appreciated.

In recent years, the positive momentum of Anhui's development has aroused public interest. Generally speaking, the past decade has seen significant leapfrog development of Anhui. This leap is reflected in the increase of Anhui's total economic output from 1.9 trillion yuan to 4.7 trillion yuan ($648.72 billion) last year, crossing three trillion-level milestones within a decade. In China's economic landscape, we have made a historic leap from a mid-ranking position in total economic volume and lagging behind in per capita income to being at the forefront in total economic volume and mid-ranking in per capita income. The total output of industrial enterprises above the designated size has risen from 3.3 trillion yuan to 5.1 trillion yuan, making Anhui a new industrial and manufacturing powerhouse.

The significant progress Anhui has made in its development over the years is fundamentally due to the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, and the scientific guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. Since the 18th CPC National Congress, General Secretary Xi Jinping has visited Anhui twice, delivering important speeches and instructions, and charting a course and guiding the way for Anhui's development. He assigned Anhui a strategic position, that is, building itself into an influential cradle of sci-tech innovation, a hub of emerging industries, a highland for reform and opening up, and an area for comprehensive green transformation of socio-economic development. The intersection of national strategies such as the integrated development of the Yangtze River Delta, the development of the Yangtze River Economic Belt, the rise of China's central region, and the Belt and Road Initiative, along with the new development pattern charted and promoted by the general secretary, has pushed forward Anhui's high-quality development. Anhui's geographical advantages in bridging China's eastern and western regions and connecting northern and southern regions are being transformed into its development advantages of accessing both seas and rivers and gathering resources from all directions.

Our strategic position is systematic and comprehensive. In terms of sci-tech innovation, Anhui indeed has relative advantages. It boasts high-level research institutions such as the University of Science and Technology of China (USTC) and the Hefei Institutes of Physical Science at the Chinese Academy of Sciences, as well as the country's first national laboratory. Hefei is one of the four comprehensive national science centers across the country, and the province's sci-tech innovation capabilities remain at the forefront in China. Currently, as many as 13 large scientific facilities have either been built, are under construction or are in the planning stage. These large scientific facilities and the large number of scientists and high-end talents we have gathered have put us at the world's forefront in areas such as quantum technology and fusion energy.

Anhui's robust innovation strengths stem from our decades of consistent efforts to increase investment in science and technology, diligently push forward the reform of the sci-tech system, nurture sci-tech enterprises, and implement the talent development project. The province ranks fourth in the country for total fiscal input in science and technology, and seventh for its research and development spending intensity, which stands at 2.56%. We have nearly 20,000 national high-tech enterprises, with over 4,200 added last year alone, and over 27,000 technology-based small and medium-sized enterprises (SMEs), with more than 9,600 added last year. Our innovation-driven strategic emerging industries are growing continuously, with rapid development seen in new energy vehicles (NEVs), advanced photovoltaics and new energy storage, next-generation information technology, and artificial intelligence (AI). Currently, 10% of display panels in the world, as well as 50% of photovoltaic glass, 20% of photovoltaic modules, 15% of home appliances and 10% of cars in China are produced in Anhui. Leveraging USTC, we established the USTC Silicon Valley, and through a series of reforms of the sci-tech system and mechanism, we profoundly cultivated an innovative ecosystem that attracts professionals from all over the world. In just over a year, 1,391 innovative enterprises have been established and more than 200 funds of various types with a total scale exceeding 230 billion yuan have been gathered.

Becoming part of the national strategy for the integrated development of the Yangtze River Delta has provided significant growth momentum for Anhui, effectively accelerating the province's progress in reform and opening-up. Anhui's integration into the Yangtze River Delta enables it to benefit from the region's leadership in development. It strengthens its connections to international industrial, capital, technical, and talent resources through the delta region, especially via the open platform of Shanghai. Learning from the experience of Shanghai, Jiangsu, and Zhejiang, we have introduced over 800 reform projects in the past three years. This has significantly enhanced governance, and improved the business environment.

An innovative development path inherently encompasses environmental friendliness. In the past decade, Anhui has achieved a nearly 30% reduction in energy consumption per unit of GDP. The water flowing out of Anhui, whether from the Yangtze River, the Huaihe River, or the Xin'anjiang River, all meet Grade II standards, meaning it can be used as a source of drinking water. The Anhui section of the Yangtze River is a habitat where Yangtze finless porpoises reproduce and thrive. The sight of Yangtze finless porpoises surfacing in groups on the river once again is a clear testament to the success of our comprehensive conservation efforts in the Yangtze River at this stage. Anhui serves as an ecological barrier for the Yangtze River Delta. As part of the region, Anhui bears not only the responsibility and obligation but also the commitment and honor to fulfill this barrier role.

Dear friends from the media,

As Anhui embarks on the new journey of Chinese modernization, it is entering a key phase of accumulating strength for success. It demonstrates strong momentum and has great potential for progress. All sectors of the province highly value this vibrant atmosphere and are making the most of every moment to forge ahead. With a strategic focus on being a source of sci-tech innovation, a hub for emerging industries, a new pacesetter for reform and opening-up, and a zone for the green transition of socio-economic development, Anhui is expediting efforts to enhance its strength in science and technology, manufacturing, agriculture, the eco-environment, talent, education, and the cultural sector. Under the new development pattern, new economic pillars are set to emerge in China, and Anhui is poised to secure its position among these new pillars.

We hope you will continue to stay informed about Anhui's development, take an interest in it, and support its progress.

That concludes my introduction. Next, my colleagues and I will take your questions.

Chen Wenjun:

Thank you, Mr. Wang. We now open the floor for questions. Please identify your news outlet before asking your question.

People's Daily:

As mentioned earlier, Anhui has made historic strides in its economic growth. Its overall GDP has advanced from a middle-ranking position domestically to a leading force. Meanwhile, its per capita GDP has shifted from a lower position to a middle-ranking one. How would you analyze Anhui's current development? What measures should the province take to sustain its growth momentum in the upcoming stage? Thank you.

Wang Qingxian:

I'll take these questions. Currently, Anhui's development demonstrates sufficient growth momentum, strong resilience, and huge potential. Despite numerous challenges, the province has maintained stable and positive overall economic performance. Beyond the general statistics mentioned earlier, I would like to highlight two additional indicators that reflect the province's economic growth. As of this March, investments in Anhui's manufacturing sector had maintained a growth rate of over 18% for 26 consecutive months. The balance of RMB loans in the province had also sustained a growth rate of over 14% for 16 consecutive months, ranking first nationwide during this period. Additionally, Anhui has seen net inflows of technology, capital, talent, and other key factors.

Where did such growth momentum come from? In addition to the general aspects mentioned earlier, I would like to elaborate on some specific aspects.

As we know, Anhui is situated at the intersection of the Yangtze River Delta and the country's mid-western region, and it is inevitably a key pivot in advancing domestic economic circulation and facilitating both domestic and international economic flows. For example, China's high-speed rail network centers around the eight main vertical lines that link the north and south, and eight horizontal lines that connect the east and west. Among these, two vertical and three horizontal lines, as well as 10 transportation arteries, run through Anhui. The region with Hefei at its center, extending within a 500-kilometer radius, is home to approximately 35% of China's population and 40% of its consumer market. Over the years, Anhui's transportation and logistic facilities have rapidly improved. The province leads the country in connecting every city with high-speed railways and providing expressway services to every county. We have also completed the construction of the Jianghuai Canal, the country's second north-south water transportation channel that runs parallel with the Beijing-Hangzhou Grand Canal. The canal has already opened to navigation. These developments have significantly elevated Anhui's position within the country's economic pattern.

How should Anhui leverage its advantages and seize the opportunity? To capitalize on these favorable factors, we need to turn them into driving forces for development. Particularly, in the latest round of sci-tech revolution and industrial transformation, we should stay committed to spurring industrial innovation by making innovations in science and technology. We must expedite the development of a modern industrial system with advanced manufacturing as the backbone. We are fully confident in achieving this goal. If Anhui's current development is already inspiring, its future prospects are undoubtedly even more promising. Thank you.

Southern Metropolis Daily:

Anhui has taken numerous measures to effectively integrate itself into the development of the Yangtze River Delta. What measures will it take next to further seize and capitalize on the strategic opportunities of this integrated development plan? Thank you.

Wang Qingxian:

Let us invite Mr. Fei to answer this question.

Fei Gaoyun:

The lower reaches of the Yangtze River start in Anhui. Anhui's integration into the Yangtze River Delta represents the greatest opportunity and potential for the province as well as entails the greatest benefits. It also provides more space for the delta region's integrated development. In recent years, Anhui has focused on the two keywords of integration and high quality, actively engaging and fully participating to deeply advance the Yangtze River Delta's integrated development.

Firstly, Anhui has aligned ideas and institutional mechanisms. For nearly three years now, we have introduced 825 reform measures across eight batches that are on par with Shanghai, Jiangsu, and Zhejiang. We have also regularly dispatched officials to parks and enterprises in these regions for on-the-job learning, aligning our development concepts and institutional mechanisms with theirs.

Secondly, Anhui has deeply participated in the industrial division and collaboration of the Yangtze River Delta. Last year, over 60% of the funds already in for Anhui's major projects each worth more than 100 million yuan came from Shanghai, Jiangsu, and Zhejiang. High-quality enterprises from Anhui are continuously integrating into the industrial chains of these other regions. For instance, the domestically produced C919 aircraft uses Anhui's alumics.

More importantly, residents are gaining a sense of fulfillment through integrated development. Currently, there are 78 pairs of high-speed trains between Hefei and Shanghai each day. The number of high-speed trains between Hefei and Nanjing is 116 pairs, and between Hefei and Hangzhou is 78 pairs. A total of 173 governmental services including birth registration and enterprise registration are now accessible across provinces. A total of 52 resident services, including medical insurance settlement and talent services, can be handled with a single card, making cross-regional living and working more convenient.

Going forward, we will follow Shanghai's lead, and work closely with Jiangsu and Zhejiang to fully display the competitiveness of Anhui and advance the integrated development of the Yangtze River Delta.

First, we will strengthen innovation collaboration, promoting the joint innovation of the comprehensive national science centers in Shanghai's Zhangjiang area as well as Anhui's Hefei. This would advance joint construction of national laboratories and clusters of big science facilities and ensure shared benefits, forming cross-regional innovation consortia to tackle core technologies in key fields.

Second, we will deepen industrial collaboration, leverage Anhui's comprehensive comparative advantages and establish paired cooperation parks for cities in Shanghai, Jiangsu, and Zhejiang to assist cities in northern Anhui and new functional areas in border regions. This will provide space for targeted industry transfer, supporting enterprises with technology advances and product upgrading. We will also regularly conduct supply and demand docking for the industrial chain's upstream and downstream, actively facilitating the layout of high-quality industrial resources of the Yangtze River Delta in Anhui.

Third, we will promote openness and sharing, closely connecting with innovation resources from Jiangsu, Zhejiang and especially Shanghai. We will accelerate the construction of the Anhui Integrated Development Zone of the Hongqiao International Airport opening hub, replicate and promote successful reform and innovation experiences from the pilot free trade zones in these regions, enhance the capacity of Anhui's pilot free trade zone and comprehensive bonded zones, and expedite high-level opening up. Thank you. 

CCTV:

To become a hub for scientific and technological innovation is Anhui's top priority when implementing the strategy of "three hubs and one zone" (a hub for scientific and technological innovation, a hub for emerging industries, a hub for reform and opening-up, and a zone for green transition of socio-economic development"). Why does Anhui have strong confidence in becoming a hub for scientific and technological innovation? Thank you.

Wang Qingxian:

I will answer this question. Creating a scientific and technological innovation hub is a strategic measure adopted upon General Secretary Xi Jinping's instructions for Anhui. We are confident when it comes to building a scientific and technological innovation hub, and this confidence comes from our scientific and technological innovation capability as well as our constant deepening of reforms with scientific and technological mechanisms. 

Just now, I introduced national laboratories and big science facilities, which have achieved many scientific and technological outcomes, especially in areas of quantum information, fusion energy and deep space exploration. 

In the field of quantum information, we have successively launched major original achievements such as the Micius quantum communication satellite and the "Jiuzhang" and "Zuchongzhi" series of quantum computing prototypes. We have successfully developed a strontium atomic optical lattice clock, which is advanced internationally with a margin of error no more than one second for 7.2 billion years. 

In the field of fusion energy, the Experimental Advanced Superconducting Tokamak, known as the Chinese "artificial sun," achieved a steady-state high-confinement plasma operation for 403 seconds at 100 million degrees Celsius, setting a new world record. We are constructing a compact nuclear fusion experimental device, and will be the first in the world to demonstrate fusion power generation. Currently, we are at the critical transition point from scientific research to engineering testing. 

In the field of deep space exploration, we have established the nation's first deep space exploration laboratory. Recently, the Tiandu-1 and Tiandu-2 lunar satellites developed by this laboratory were successfully launched, marking China's first time to realize dual-satellite formation flight on the lunar orbit. 

The Steady High Magnetic Field Facility, a large piece of scientific apparatus, can generate the world's highest steady-state magnetic field – 900,000 times stronger than the Earth's magnetic field – to support scientific research. These high and strong magnetic fields can be used to observe and regulate the inner structure of a nucleus. The under-construction Hefei Advanced Light Source (HALS) is the world's most advanced fourth-generation synchrotron radiation light source, and its performance is over one hundred times higher than that of the third-generation light sources. What are the values of the fourth-generation one? Called the "spiritual eye" by scientists, it allows users to see the microcosmos at the molecular and atomic levels.  

Building a home for sci-tech innovation needs to fully leverage the role of the market in allocation of innovative resources, activate elements of sci-tech innovation, and ignite the innovation and creativity of scientists and other talented people. To achieve those goals, we further reformed the systems and mechanisms for sci-tech development. Through a series of reforms, we promoted collaborative innovation by colleges, universities, research institutes, large scientific facilities, and enterprises and constructed an innovative ecosystem featuring the coordinated efforts of the government, enterprises, universities, research institutes, financial support, intermediary agencies, and consumers, obtaining a number of achievements. USTC Silicon Valley creates such a scenario, as a test area. Many innovative units will spring up here. In our operational model, various innovation consortiums are stationed in separate buildings where they foster new, emerging industries. Thanks. 

Red Star News:

We note that the recent brand promotion conference of building "Grand Huangshan" as a world-class tourism destination for leisure, vacation, and wellness was held in Anhui. My questions are: how do you define Grand Huangshan, what is the difference between Grand Huangshan and Huangshan Mountain in the traditional sense, and what is the blueprint for Grand Huangshan? Thanks.

Wang Qingxian:

Mr. Sun will answer these questions. 

Sun Yong:

Over 400 years ago, China's great traveler Xu Xiake once praised Huangshan Mountain after two visits that it is unrivaled among all mountains and boasts the ultimate spectacle. Nowadays, Huangshan Mountain has not only gained nationwide fame, but also become internationally recognizable. It belongs to China and the world. 

We will leverage the global fame of Huangshan Mountain to build the Grand Huangshan region, coordinating 28 counties and districts of four cities, namely Huangshan, Chizhou, Anqing, and Xuancheng, as a world-class tourism destination for leisure, vacation, and wellness. 

As one of the most scenic and beautiful places, the Grand Huangshan region is home to 227 A-level tourist attractions and is recognized as one of eight national agglomeration areas of A-level tourist attractions. Huangshan Mountain, Jiuhua Mountain, Tianzhu Mountain, and Qiyun Mountain compete to show their scenic views. Mighty Yangtze River, Xin'an River, Qiupu River, and Qingyi River flow endlessly. Taiping Lake, Huating Lake, Shengjin Lake, and Pingtian Lake stretch vastly with clear, rippling water. 

The Grand Huangshan region is known for its profound cultural heritage. Different cultures, such as Huizhou culture, Tongcheng culture, ancient Wan culture, and revolutionary culture, are present in the area and blend. The region also features five national famous historical and cultural towns, namely Anqing, Shexian, Jixi, Yixian, and Tongcheng. They enhance each other's radiance. The "four treasures in the study" of Huizhou ink, She ink stones, Xuan paper, and Xuan writing brushes have become world-famous. The region is dotted with over 9,000 ancient dwellings and villages, including 445 traditional Chinese villages. Xixi'nan village, with a history of 1,200 years, is hailed as the real-life version of Land of Oz, seeing almost 150,000 visitors this past May Day holiday alone.

The Grand Huangshan region is blessed with unique ecological conditions. Its average annual temperature is 16 degrees Celsius. Its air quality is good or excellent on more than 90% of the days throughout the year. The air contains over 20,000 negative oxygen ions per cubic centimeter around Huangshan Mountain, Jiuhua Mountain, and Tianzhu Mountain, where travelers can take a deep breath, detoxify the body, and embrace the calm. 

In the Grand Huangshan region, one can appreciate the scenic views, experience different cultures, and fully relax the body and the mind. In short, it is a fairyland to refresh one's mind and spirit.

Decisions and arrangements made by the CPC Anhui Provincial Committee and provincial government to build the Grand Huangshan brand lie in the above-mentioned advantageous conditions, conform with the trends of tourism consumption upgrade, and focus on deepening supply-side structural reform. With the aim of aligning with international standards, we continue to improve the service quality, upgrading from traditional sightseeing tourism to modern tourism encompassing leisure, holiday-making and wellness, building a modern service industry cluster combining leisure tours, medical care and wellness, the creative economy, sporting events, the exhibition economy, and cultural services, and thus, forming a new pattern of integrated development of the primary, secondary, and tertiary industries.  

We call it Grand Huangshan for two reasons. First, there are huge opportunities lying in the integration of resources and elements across vast areas. Second, there is great potential for industrial expansion led and empowered by influential brands. 

We cordially invite friends from home and abroad to come to the Grand Huangshan region and experience the original version of misty Jiangnan (the scenic region south of the Yangtze River) described in the poetry of the Tang and Song dynasties. We also welcome investors to invest and do business in the region. All will have a wonderful life here, and let's celebrate success together. Thanks.  

CRNTT:

In 2023, the proportion of the output value of strategic emerging industries in Anhui province accounted for over 40% of the total output value of the industrial enterprises above the designated size. What achievements and experience have been made in creating clusters for emerging industries? Thank you.

Fei Gaoyun:

In recent years, based on its own industrial foundation, Anhui province has accelerated the creation of clusters for emerging industries in key areas such as automobiles and new-generation information technology, in response to the new round of industrial development and transformation. It has developed new quality productive forces according to local conditions.

Here, I would like to share a set of data with you. Currently, the automotive and equipment manufacturing industries in Anhui have both exceeded 1 trillion yuan. Our new materials, new energy, and energy-conserving and environment friendly industries have also surpassed 500 billion yuan. In particular, our automotive industry has experienced rapid development. As Mr. Wang just mentioned, our automobile production last year reached 2.491 million vehicles, ranking second in the country. Among them, the production of new energy vehicles (NEVs) reached 868,000 vehicles, ranking fourth in the country. Automobile exports reached 1.147 million vehicles, which means that approximately one out of every four cars exported overseas from China is manufactured in Anhui. Over the past decade, the proportion of strategic emerging industries in Anhui's industrial output value has doubled. To achieve such a development trend, we have consistently focused on the following three aspects in our work:

First, we adhere to the direction of cluster development. Following the path of "leading enterprises, industrial chains, industrial clusters, industrial ecosystems," we persistently promote the aggregation and consolidation of industries. For example, with seven automobile manufacturers such as Chery, NIO, JAC and Volkswagen Anhui as the leading companies, we have attracted over 4,000 automotive component and aftermarket enterprises. More than 470 integrated circuit industry enterprises have been clustered, forming a relatively complete industrial chain.

Second, we adhere to the approach of "sci-tech innovation + industry." We leverage our abundant science and innovation resources to serve industries and enterprises. For instance, we are implementing the "Two 80%" initiative, which aims to ensure that 80% of newly designated industrial innovation platforms each year are led by enterprises, and 80% of industrial sci-tech projects each year are initiated by enterprises.

We are also carrying out the "Two Doublings" action, which means that by 2025, the number of high-tech enterprises and technology-based SMEs in the province will both be double compared to 2021. Last year, Anhui saw an average of 11 new high-tech enterprises and 26 new technology-based SMEs established every day.

Third, we adhere to market-oriented and specialized promotion mechanisms. We invite leading enterprises and expert teams to join the promotion groups for emerging industries, jointly formulate industrial plans, and map out industrial chains. We actively utilize models such as attracting industrial chain investment and scenario-based investment, and discover industrial resources through market forces. Additionally, we cooperate with international chambers of commerce, bilateral funds, and others to better integrate Anhui's advantageous industries into the global industrial chain. Thank you.

National Business Daily:

In 2023, Anhui initiated its implementation of the "100-billion-jin granary in the Yangtze-Huai River region" project, and its grain output hit record high. In the future, what arrangements and plans will Anhui take to ensure national food security? Thank you.

Wang Qingxian:

I would like to invite Ms. Chen to answer this question.

Chen Jun:

Anhui is a major grain-producing province. Last year, our total grain production exceeded 83 billion jin (41.5 billion kg), achieving 20 consecutive years of bumper harvests. With only 4.3% of the country's arable land, Anhui produces 6% of the national grain output. Anhui is also one of five provinces in China that has a net grain surplus, with an annual net surplus of about 20 billion jin of high-quality grain. It can be said that ensuring national food security is an obligation and an undeniable responsibility for Anhui. We not only strive to make contributions in terms of quantity but also aim to make breakthroughs in terms of quality.

On the one hand, we aim to increase the quantity of high-quality Anhui grain to secure China's food supply. Focusing on food security, which is considered as one of the country's most fundamental interests, Anhui province set a goal last year of building a "100-billion-jin granary in the Yangtze-Huai River region." This means that Anhui's grain production capacity will stabilize at over 100 billion jin by 2035. Centering on expanding grain production and improving grain quality, we have emphasized two crucial aspects: cropland and seeds. Major supporting projects such as high-standard cropland development and the revitalization of the seed industry have been implemented. Currently, we have developed 62.56 million mu of high-standard cropland, accounting for 75% of the total arable land area. The export volume of rice seeds has ranked first in the country for five consecutive years. We will work to gradually develop all permanent basic cropland into high-standard cropland and strengthen the seed industry as the core of agriculture. By turning every inch of cropland into fertile soil for bountiful harvests and increasing grain production, we aim to make significant contributions in Anhui province to safeguarding food security.

On the other hand, we strive to support the development of green agricultural products. Anhui is a key source of agricultural products for the Yangtze River Delta region, supplying half of the region's grain and meat, one-third of its fruits, and one-fifth of its vegetables. In the past two years, Anhui's specialty agricultural products, including foie gras, Mengcheng cattle, Dangshan pears, and Huaining blueberries, have gone viral online and gained market popularity. This has added significant value to the agricultural sector and brought wealth to farmers. Over the past five years, the per capita disposable income of rural residents in Anhui has grown annually by 0.4 percentage point higher than the national average. We will step up efforts to develop a high-quality and competitive agricultural sector and build Anhui into an agricultural powerhouse. We will deeply promote the integrated development of primary, secondary, and tertiary industries, strengthen agricultural support through science, technology, and equipment, and vigorously develop intelligent and protected agriculture. We will establish a batch of production, processing and supply bases of green agricultural products for the Yangtze River Delta region and make solid progress in developing the whole industrial chain of grain, incorporating animal husbandry and meat processing, as well as integrating agriculture and industry, to expand income sources for farmers. We will empower enthusiastic new farmers in regions between the Yangtze River and the Huaihe River, improving their income levels and living standards.

Guangming Daily:

I understand that since 2023, Anhui has established a system to collect the people's voices and address their appeals regularly. Could you please elaborate on Anhui's measures to ensure and improve people's livelihoods? What results have been achieved? Thank you.

Fei Gaoyun:

Ensuring and improving people's livelihoods have always been the starting point and ultimate goal of our work. For 17 consecutive years, we have implemented livelihood projects and practical measures, continuously enhancing people's well-being through the promotion of high-quality development. I will give two examples.

The first example is about medical treatment. In the past, Anhui lacked high-quality medical resources, and it was common for local people to seek medical treatment in other provinces. Since 2020, under the country's guidance, we have started cooperating with top domestic hospitals, such as Beijing Tiantan Hospital and the Children's Hospital of Fudan University. With a total investment of 13 billion yuan, we have built nine national regional medical centers, four of which are already operational and five are under construction. These centers provide high-level and convenient medical resources for local people.

The second example is about drinking water. Due to the limitations of weather and geography in northern Anhui, the main source of drinking water here was groundwater in the past, which is difficult to access and has unstable quality. Since 2021, we have implemented a water diversion project for the people in northern Anhui, with a total investment of over 26 billion yuan. We now use the Yangtze-Huaihe Grand Canal to divert water from the Yangtze River to northern Anhui, replacing the existing groundwater sources. We had completed replacement projects in 13 counties and districts by the end of last year, and plan to finish the projects in the remaining 15 counties and districts by the end of next year. By then, more than 30 million urban and rural residents in northern Anhui will all have access to higher-quality drinking water.

While carrying out work to improve people's livelihoods, we place a high value on addressing their concerns. Even the smallest matters are given top priority by the government. Since last year, we have been actively responding to each and every one of the people's concerns and have established a platform system to collect the people's voices at the provincial, city, and county levels. We have instituted a closed-loop work mechanism from collecting the people's voices to referring them to relevant government departments, strengthening follow-up oversight, making evaluations, and providing feedback. This mechanism effectively addresses existing problems so that beneficial policies are well implemented and we can better respond to the people's concerns and hear their voices. We work to offer more channels for the people to express their needs and ensure that the appropriate departments and officials are addressing their concerns. As of now, the system has collected 51,700 appeals and 50,800 of them have been settled, earning genuine praise from the public

Efforts to improve people's livelihoods are ongoing and require consistent dedication. In March this year, the CPC Anhui Provincial Committee and the Anhui provincial government held a special conference on people's livelihoods and issued guidelines. We will consistently optimize the system for collecting public feedback, streamline channels for voicing concerns, enhance the quality and efficiency of handling these concerns, and deepen governance at the source. We will implement 50 livelihood projects on a rolling basis, addressing them one by one, year after year, to continuously enhance the people's sense of gain, happiness, and security. Thank you.

China Daily:

In recent years, Anhui has focused on fostering a market-oriented and law-based international business environment, earning a good market reputation. Could you please elaborate on Anhui's efforts and practices in optimizing the business environment? Thank you.

Wang Qingxian:

I'll answer this question. From our perspective, optimizing the business environment requires government efforts, enterprise feedback, and market efficiency in particular. Specifically, the government should respect, understand, and utilize market rules to address market failure and promote market efficiency. That is, the government should respect, understand, and support enterprises' innovation and creativity. In recent years, Anhui has continuously introduced over 800 measures to optimize the business environment. In two consecutive editions of the national survey "Business Environment Evaluation by Ten Thousand Private Enterprises," organized by the All-China Federation of Industry and Commerce, our overall score and reputation have ranked among the top in the country.

German automotive giant Volkswagen launched operations in Anhui as early as 2017. Last year, the company established its largest overseas research, innovation, and procurement center for intelligent networked vehicles in Hefei, with an investment of 1 billion euros ($1.07 billion). In recent years, many world-renowned multinational corporations, such as Corning from the United States and Unilever from the United Kingdom, have expanded their investments in Anhui. Last month, Standard Chartered opened a branch in Hefei. Whether increasing investments or opening local offices, these multinational enterprises are largely attracted by Anhui's favorable business environment.

How can we improve the business environment to better benefit enterprises? Here are three key points from our experience:

First, government's support policies should meet the needs of enterprises. On the one hand, we involve local companies in research, discussions, and the entire policymaking process, creating opportunities for the government and corporations to exchange ideas and communicate effectively. To ensure smooth communication channels, officials from the CPC Anhui Provincial Committee and the provincial government hold symposiums with entrepreneurs every two months. Sometimes, the Standing Committee of the CPC Anhui Provincial Committee even holds work conferences at company offices. A series of policies regarding emerging industries such as new energy and intelligent networked vehicles, the new generation of information technology, and artificial intelligence are formulated based on joint research, discussions, and reviews by government departments, enterprises, business associations, and relevant experts. On the other hand, we have implemented policies efficiently to benefit enterprises directly. In recent years, we have streamlined administration and introduced favorable policies for qualified enterprises by using industrial internet thinking and technology. For example, the "enjoy now without applying" policy allows qualified companies to receive support funds without application. The "apply now and enjoy now" policy guarantees that enterprises receive immediate funds upon application. Big data and other technologies have been used to help identify eligible companies and calculate the amount of funds they can receive. This mode also compels local governments to ensure their policies are feasible. Last year, 11.5 billion yuan in funds were given to enterprises under the "enjoy now without applying" policy.

Second, the rule of law and the government's credibility can win the trust of enterprises. The rule of law secures the best business environment, and law-based administration lays the foundation for a trustworthy government. To regulate the actions of administrative organs in responding to lawsuits, we have taken the initiative to require the head of the sued administrative organ to appear and respond in court since 2022. Since then, the court appearance rate has remained at 100%. In 2023, we implemented the Regulations on Improving the Business Environment in Anhui, setting out provisions on minimum examinations and approvals, market access, and law enforcement related to enterprises. We have established a rapid response mechanism for protecting enterprises' legitimate rights and interests, and efficiently handle enterprise-related lawsuits and intellectual property disputes. We are currently developing an innovation zone for legal affairs, where high-level legal service clusters will be created to provide more professional and higher-quality legal services for enterprises.

Third, the government should improve its administrative efficiency to provide more convenience for enterprises. We set up a special panel for industrial development and formed an efficient coordination mechanism to promote connection among provinces, cities, and counties, as well as advance collaboration among departments at all levels. We established a flat organizational structure to provide more efficient services for enterprises, ensuring their voices are heard and their demands are met in a timely manner. We also introduced online and offline channels to collect enterprises' requests and address their difficulties through a closed-loop management system. This year, we continue to improve our efficiency and make every effort to provide convenience for enterprises. For example, the application materials for starting a transportation company have been cut from 28 items to 12 items, and the processing time has been shortened from 20 days to three days. The application materials for immovable property registration for enterprises have been reduced from eight items to four items. At the same time, the processing time has been cut from five days to only one day. When applying for verification of legal compliance information, companies are now allowed to use a single corporate public credit information report in place of separate non-violation certificates in 40 fields. Thank you.

CNR: 

I know that Anhui province has proposed to earmark the region for comprehensive green transformation and economic and social development. How should we best understand this proposal? In addition, how can eco-environmental strengths be translated into high-quality development strengths? Thank you. 

Sun Yong:

Anhui has been gifted with beautiful landscapes. In recent years, we have acted on the principle that lucid waters and lush mountains are invaluable assets, working toward peaking carbon dioxide emissions and achieving carbon neutrality, and vigorously advancing green and low-carbon development, with the continuous presentation of new splendors in the Yangtze River and Huai River basins. We have promoted well-coordinated environmental conservation and avoided excessive development. The banks of the Yangtze River, which used to be densely occupied with wharves and sand piles, are now filled with lush greenery and crowded with tourists. The model of cross-provincial joint ecological conservation in the Xin'an River basin has been promoted to 20 river basins in 21 provinces nationwide, and now the Xin'an River is one of the rivers with the best water quality in China. The banks of the Huai River have fertile lands and picturesque sceneries; the forest coverage rate of Mount Huang and other mountain ranges is as high as over 95%; biodiversity has also been improved in the process of restoration. As just mentioned by Mr. Wang, people can often see the Yangtze finless porpoise, known as "the panda of the water," chasing the waves of the river, and the oriental white storks, a nationally treasured bird species, flying over the Chaohu Lake. The Chinese merganser ducks, known as the "litmus test for ecology," have become frequent visitors to Anhui province in recent years. Anhui has become an important ecological barrier in the Yangtze River Delta and even the whole country.

The vivid practice of green development in Anhui province has made us deeply realize that economic development and eco-environmental protection are not a single choice but complementary and mutually reinforcing. We will thoroughly implement Xi Jinping Thought on Ecological Civilization, have a correct attitude towards performance in our work, not be moved by short-term growth and immediate interest, and continue to prioritize ecological conservation and pursue a green path to development.

First, we will continue to promote the ecologicalization of industries. We will strengthen innovation-driven and science and technology-empowered development; foster and develop green and low-carbon industries as new energy, energy conservation, and environmental protection; accelerate the green transformation of traditional industries; resolutely shut down outdated production facilities; and strive to improve the social benefits of industrial development. At the same time, we will actively build a new energy system and launch projects to boost the installed capacity of wind and solar power. The total installed capacity of renewable energy power generation reached 48.24 million kilowatts in 2023, accounting for 76% of the newly installed renewable energy capacity in China.

Second, we will continue to advance the industrialization of ecology. We will upgrade the construction of the Xin'anjiang-Qiandao Lake Ecological Environment Joint Protection Cooperation Zone and continue to deepen the implementation of the systems for the compensation of ecological conservation of surface water in Anhui province and provinces on the upper and lower reaches of the Yangtze River. We will actively develop the ecological health and wellness and ecological culture and tourism industries and explore new paths to realize their market value, such as via the development of ecosystem goods and the trading of ecological property rights. We will strictly implement a system of compensation for ecological and environmental damage to ensure reasonable returns for those who protect and restore the eco-environment.

Third, we will continue to develop a policy system. We will focus on accelerating the construction of the region's comprehensive green transformation for economic and social development, adhering to systems thinking, and strengthening financial, fiscal, taxation, and pricing policy support. We will speed up industrial transformation, promote green consumption, and make green and low-carbon production and lifestyle a common practice. This will provide stronger support for building a leading province in ecology and creating a beautiful Anhui. Thank you.

Chen Wenjun:

Due to time constraints, we will have one last question, please.

Hong Kong Bauhinia Magazine:

Anhui is now a province with net population inflows. What are the major reasons for that? What measures have been taken to attract talents and encourage business startups? Thank you.

Wang Qingxian:

I'll take this question. Just as you mentioned, Anhui province has demonstrated an increasingly clear momentum toward net population inflows. According to our analysis, two reasons have contributed to this. One reason is that more and more people from other provinces are working in Anhui province. The other reason is that more and more people from Anhui province choose to seek jobs and work here. Last year, there was a net increase of 219,000 people in Hefei, ranking top among cities in the Yangtze River Delta. These net population inflows show a sound economic development momentum in Anhui province, with more job opportunities, improved quality of employment, better pay packages, and broader opportunities for business startups.

In order to attract talents and encourage entrepreneurship, the provincial Party committee and provincial people's government have launched a workforce development project in Anhui province, a series of programs for talents to tour Anhui province, and advanced business startup programs in Anhui province. Through interactions between technologies, talents, capitals, and scenarios, we have enabled more young people to innovate and start businesses and have particularly created more opportunities in new technologies, industries, business forms, and models. We have set up a "fund jungle" to support entrepreneurship and adopted a series of measures to encourage the development of patient capital that invests in small businesses in the early development stages and in sci-tech companies, with the scale of private equity fund products reaching a record 1.68 trillion yuan, ranking seventh in China. We have taken innovative steps to launch a joint development project to support sci-tech companies, and loans to sci-tech companies have grown rapidly, from over 150 billion yuan in 2021 to nearly 600 billion yuan in 2023. To support entrepreneurship, we have created more entrepreneurial scenarios. For example, Hefei has taken the lead in building China's first all-space unmanned system application program and has gathered over 100 low-altitude-economy enterprises in about a year. At present, there is a strong atmosphere of innovation in Anhui province, especially in Hefei and Wuhu. For example, there are sci-tech salons and lectures, as well as various academic seminars. The whole city is immersed in an atmosphere of science and technology innovation.

Talents play a core role in achieving Anhui province's objectives of creating a source for sci-tech innovation, a cluster of strategic emerging industries, a pacesetter of reform and opening-up, and a region of the comprehensive green transformation of economic and social development. They're also important for building Anhui province into a leading province in science and technology, as well as the manufacturing, agriculture, ecology, talents, education, and culture sectors. We will embrace talents from all over the world with enthusiasm, sincerity, and an open mind. We are willing to work with you to achieve things together. 

Lastly, I sincerely invite you to go and see the changes in Anhui province for yourself, and to witness what the four of us have presented here today. Thank you all.

Chen Wenjun:

Thanks to Mr. Wang and all the other three speakers. Thanks to friends from the media. Today's briefing is hereby concluded. Goodbye.

Wang Qingxian:

Thank you all, and you are welcome to visit Anhui.

Translated and edited by Zhang Rui, Zhu Bochen, Liu Jianing, Wang Yanfang, Liu Caiyi, Wang Ziteng, Lin Liyao, Xu Kailin, Wang Wei, Huang Shan, Yuan Fang, Liu Sitong, Zhang Junmian, 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. Ye Jianchun, deputy secretary of the Communist Party of China (CPC) Jiangxi Provincial Committee and governor of Jiangxi province

Mr. Ren Zhufeng, a member of the Standing Committee of the CPC Jiangxi Provincial Committee and executive vice governor of Jiangxi province

Mr. Song Dexiong, director of the Science and Technology Department of Jiangxi Province

Mr. Ying Jiong, director of the Department of Industry and Information Technology of Jiangxi Province

Chairperson:

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

Date:

May 16, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 18th press conference in the series "Promoting High-quality Development." Today, we have invited Mr. Ye Jianchun, deputy secretary of the Communist Party of China (CPC) Jiangxi Provincial Committee and governor of Jiangxi province, to brief you on continuing Jiangxi's revolutionary glories and striving ahead in promoting high-quality development of its old revolutionary base areas. He will also take your questions. Also present today are Mr. Ren Zhufeng, a member of the Standing Committee of the CPC Jiangxi Provincial Committee and executive vice governor of Jiangxi province; Mr. Song Dexiong, director general of the Science and Technology Department of Jiangxi Province; and Mr. Ying Jiong, director general of the Department of Industry and Information Technology of Jiangxi Province.

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

Ye Jianchun:

Ladies and gentlemen, good morning. I'm very glad to brief you on Jiangxi's efforts in promoting high-quality development. First of all, on behalf of the CPC Jiangxi Provincial Committee, the Jiangxi provincial government and over 45 million Jiangxi residents, I'd like to express my heartfelt gratitude to you for your long-term interest in and support for Jiangxi's economic and social development. 

Jiangxi, with its naturally endowed abundance and talented people, is rich in revolutionary history. General Secretary Xi Jinping has placed great importance on Jiangxi's development and has shown deep care for people living in the old revolutionary base areas. Since the 18th CPC National Congress, he has inspected Jiangxi three times, charting the course and steering the direction of development for us. During his inspection last October, he assigned us a new position and mission: striving to lead both the promotion of high-quality development of old revolutionary base areas and the rise of the central region, and making sound efforts in advancing the development of the Yangtze River Economic Belt. This has greatly boosted the confidence and morale of the entire province. Always bearing in mind his expectations for us with gratitude, we have pressed ahead with concrete steps, securing solid progress in promoting the building of a modern socialist Jiangxi in all respects. My introduction will involve six aspects:

First, Jiangxi's comprehensive economic strength has notably improved. We have consistently clung to the top priority of high-quality development, leading to an overall improvement in the province's comprehensive economic strength. Currently, Jiangxi has caught up in development. The province's GDP increased from 1.28 trillion yuan in 2012 to 3.22 trillion yuan ($444.2 billion) in 2023, crossing two trillion-yuan thresholds. Per capita GDP grew from 28,600 yuan in 2012 to 71,200 yuan in 2023, exceeding $10,000 if calculated at both the exchange rate on Dec. 31, 2023 and the current exchange rate. 

Second, Jiangxi has grown to be one of the provinces strong in industry. We have steadfastly implemented the strategy of building up the province's strength through industrial development, striving to enhance and expand the manufacturing sector as a crucial instrument to empower the province. As a result, Jiangxi has transitioned from a traditional big agricultural producer to a strong emerging player in industry. In 2023, our industrial value-added output reached 1.12 trillion yuan; the value added of manufacturing remained at around 33% of the province's GDP, ranking among the top nationwide; the total number of industrial enterprises above the designated size exceeded 18,000. Jiangxi now boasts one industry with an annual output of more than 1 trillion yuan and 14 industries each with an annual output of at least 100 billion yuan. Among them, the revenue of the electronic information industry reached 1.08 trillion yuan in 2023, ranking fourth nationwide; the revenue of non-ferrous metals and equipment manufacturing sectors approached 800 billion yuan and 700 billion yuan, respectively. The non-ferrous metals and equipment manufacturing sectors have continued their strong growth momentum this year, with the value added increasing by 20.5% and 17.1%, respectively, year on year in the first quarter. Both sectors are developing rapidly toward an annual output of 1 trillion yuan. 

Third, Jiangxi has deepened its reform and opening up. We remain committed to promoting reform and development through opening up, with reforms in key areas such as green finance and rural residential land leading the country, effectively tackling some deep-seated obstacles to high-quality development. Fully leveraging Jiangxi's unique geographical advantages in connecting China's eastern and western regions, linking its northern and southern regions and having access to both rivers and the sea, we have further advanced the establishment of an inland open economy pilot zone and actively participated in the Belt and Road Initiative. Additionally, we have aligned with major national strategies such as the integrated development of the Yangtze River Delta and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area. Such in-depth opening up and cooperation have gathered more resources and factors for production, creating broader prospects for development. 

Fourth, Jiangxi has further advanced all-round rural revitalization. We have always prioritized the development of agriculture and rural areas, ensuring stable production and supply of important agricultural products with no large-scale return to poverty. The province's grain output has remained above 21.5 million metric tons for 11 consecutive years. In 2023, the per capita net income of people lifted out of poverty stood at 18,571 yuan, a year-on-year increase of 13.6%, surpassing the growth rate of per capita disposable income of rural residents in the province. We have intensified efforts to spur agricultural development by boosting industrial growth, raising quality standards and promoting green development, effectively bolstering local specialties. Currently, Jiangxi is home to more than 1,000 leading enterprises of agricultural industrialization at or above the provincial level, including 930 businesses with an annual revenue exceeding 100 million yuan and 76 companies exceeding 1 billion yuan. Over 180 quality agricultural products from Jiangxi are now available in upscale supermarkets and restaurants. Jiangxi is expediting its transition from a traditional big agricultural producer to a leading province in modern agriculture. We have launched a special initiative to improve the rural living environment, and moved faster to turn the countryside into a beautiful and harmonious place for people to live and work in. These efforts will lead to comprehensive improvements that enhance every aspect of village life. Our goal is to ensure rural residents have access to modern amenities and services in their neighborhoods. 

Fifth, Jiangxi's ecological environment remains among the best nationwide. The province consistently ranks among the top in ecological protection. We have always protected and nurtured our first-class ecology with the utmost care, striving to create a model for a beautiful China through the "Jiangxi example." The province's forest coverage rate remains stable at over 63.1%, ranking second nationwide. In 2023, 96.5% of days had good air quality, and 97% of national monitoring sites reported excellent water quality. The enchanting green mountains and the vast Poyang Lake have become vibrant symbols of beautiful Jiangxi, with scenes like "clear waters where Yangtze finless porpoises leap," "deer drinking from deep forest streams," and "countless birds soaring in the pure sky."

Sixth, the living standards of the public are progressively improving. We are committed to a people-centered development approach, dedicating around 80% of our annual budget to addressing major public concerns. We have steadily increased the standards for subsistence allowances and assistance for those in extreme poverty for 17 years in a row. We have ensured more equitable access to public services such as education, healthcare, culture, and sports. We have been recognized as an outstanding province in the national evaluation of public security for 17 consecutive years. The people's sense of gain, happiness, and security is constantly increasing.

That is all from me for now. Next, my colleagues and I would like to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Ye. The floor is now open for questions. Please identify the news outlet you work for before asking your question.

Xinhua News Agency:

As one of the provinces in the Yangtze River Economic Belt, how can Jiangxi better serve and promote high-quality development within the region? Thank you.

Ye Jianchun:

Thank you to the journalist from Xinhua News Agency for your question. I will answer it. If the Yangtze River were likened to a giant dragon, Jiangxi would be situated at the midsection of its body. Jiangxi has a 151.9-kilometer stretch of prime Yangtze River shoreline. On average, nearly 150 billion cubic meters of water flow annually from the Ganjiang, Fu, Xin, Rao and Xiu rivers into Poyang Lake, and after regulation by the lake, this water contributes approximately 15% of the Yangtze River's total volume. Under the country's strictest water resources management system, Jiangxi's annual water usage is capped at 26.463 billion cubic meters until 2030. To put this in perspective, this figure represents only 16.9% of the total water Jiangxi channels into the Yangtze River. Jiangxi has made significant contributions in supplying premium water resources to the Yangtze River.

I understand that Jiangxi needs to fully shoulder the responsibility and mission of promoting the development of the Yangtze River Economic Belt. This involves not only protecting the ecological environment but also advancing the green transformation and development of the economy. On the one hand, we will unwaveringly adhere to the principle of coordinated efforts for overall protection, avoiding excessive development, and putting more effort into high-level protection. Our goal is to ensure that clean water from lakes flows into the river and clean water from the river flows eastward. We have already made significant progress in this area, and moving forward, we will strive to do even better. On the other hand, we will accelerate the comprehensive green transformation of economic and social development and strive for excellence in serving and integrating into the high-quality development of the Yangtze River Economic Belt. Our efforts will focus on three aspects:

First, we will focus on promoting the high-end, intelligent, and green development of industries. Since the reform and opening-up, Jiangxi has had a significant presence of traditional industries such as petrochemicals, steel, and textiles along the river. In recent years, we have adhered to innovation-driven development and technological empowerment, accelerating the optimization and upgrading of industrial and energy structures along the river. Sinopec Jiujiang Company, located on the banks of the Yangtze River, has made significant strides through technological upgrades, ensuring not a single drop of oil or wastewater enters into the river. It has become the first intelligent manufacturing demonstration and benchmark enterprise in the petrochemical industry nationwide. We will integrate high-end, intelligent, and green elements throughout the entire process of upgrading traditional industries, nurturing and strengthening emerging industries, and strategically planning future industries. We will vigorously promote the digital transformation and green transformation of industries along the river, accelerating the cultivation of new drivers of green growth.

Second, we will focus on deepening regional coordination and synergy. In recent years, we have strengthened cooperation with provinces and cities along the Yangtze River. We have signed an action plan with Hubei and Hunan to promote high-quality development in the middle reaches of the Yangtze River. We are actively aligning with and integrating into the development of the Yangtze River Delta. We will build Jiujiang into a key nodal city on the Yangtze River Economic Belt to high standards, and to promote Nanchang and Jiujiang as national strategic hubs for modern logistics. We will leverage the innovative resources of the Yangtze River Delta to advance industrial upgrading in Jiangxi. Additionally, we will better advance ecological environment governance, infrastructure development, investment and trade integration, and the sharing of public services.

Third, we are committed to promoting the culture of the Yangtze River. Visitors to the Yangtze River National Cultural Park in Jiangxi can revisit the creative journey of Bai Juyi's "Pipa Xing" at the Pipa Pavilion, trace Su Shi's inspiration for "Record of Stone Bell Mountain" at its very source, Stone Bell Mountain, and experience the flourishing history of the millennium-old White Deer Grotto Academy. These experiences allow you to immerse yourself in Jiangxi's extensive and profound cultural legacy. We will enhance the protection of cultural relics and heritage along the Yangtze River, delve into the essence and contemporary significance of Yangtze River culture, and fully showcase the unique charm of Jiangxi's historical and cultural depth. Thank you.

Economic Daily:

Recently, General Secretary Xi Jinping presided over a symposium to guide the direction and chart a blueprint for the rise of the central region. How will Jiangxi seize the opportunity to promote high-quality development and make new advances in the rise of the central region in the new era? Thank you!

Ye Jianchun:

Thank you for your question. I will invite Executive Vice Governor Ren Zhufeng to answer it.

Ren Zhufeng:

Thank you for this excellent question. General Secretary Xi Jinping pointed out that the central region is China's important grain production base, energy and raw material base, modern equipment manufacturing and high-tech industry base, and comprehensive transportation hub. These can be summarized as the "three bases and one hub." We will focus on our positioning in the "three bases and one hub," take proactive actions, leverage our strengths, and create distinctive features. We aim to lead in promoting the rise of the central region.

Regarding building a grain production base, Jiangxi is one of the 13 major grain-producing areas in China and one of the two provinces that have continuously provided commercial grain to the country since the founding of the People's Republic of China. With 2.13% of the country's arable land, we produce 3.21% of the nation's grain. We will continue to rigorously uphold our responsibilities for food security and arable land protection, make every effort to stabilize the farmland area, focus on increasing yield per unit area, optimize the agricultural structure, and contribute significantly to ensuring national food security.

In building an energy and raw material base, Jiangxi has 11 mineral reserves that rank among the top in the country, earning it titles such as the "Tungsten Capital of the World" and the "Lithium Capital of Asia." Additionally, it has developed clusters such as Yingtan's "Copper Capital of the World," Ganzhou's "Rare Metals Valley of China," and the lithium battery new energy sector. We will continuously enhance the supply capacity of our unique mineral resources, further expand the industrial scale, and strive to build a strategic energy and raw material base with significant global influence as soon as possible.

In building a modern equipment manufacturing and high-tech industry base, Jiangxi boasts a long history in manufacturing, strong foundational conditions, and a robust culture of innovation, with many industries leading nationally. For example, in the aviation industry, Jiangxi was the birthplace of the PRC's first aircraft, and is the only province with the capability to design and produce both rotary-wing and fixed-wing aircraft. We will capitalize on our distinctive strengths, leverage our competitive advantages, and continuously promote high-end, green, and intelligent development in manufacturing to restore the glory of Jiangxi's manufacturing industry.

In building a comprehensive transportation hub, Jiangxi is the only province in the country adjacent to the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and the Western Taiwan Straits Economic Zone. Jiangxi is the first province in the nation where all cities with subordinate districts are connected by high-speed rail operating at 350 kilometers per hour, and the third province with high-speed expressways linking every county. We will further optimize the layout of the comprehensive multi-modal transportation network, accelerate seamless connections between water, land, and air transportation, promote multi-modal transport involving highways, railways, and waterways, and integrate customs clearance procedures. Leveraging our highly accessible transportation network, we will continuously enhance our geographical advantage of being well-connected in all directions. Thank you.

China Youth Daily:

Jiangxi boasts beautiful natural scenery and a rich cultural heritage, providing excellent conditions and unique advantages for integrating culture and tourism. Could you provide an overview of this integration and outline the plans for the next steps? Thank you!

Ye Jianchun:

Thank you for your question and your attention to Jiangxi's cultural and tourism development. I will answer this question.

In July 1934, Chairman Mao Zedong wrote a famous poem in Huichang, Jiangxi: "Crossing these blue hills adds nothing to one's years; the landscape here is beyond compare." Jiangxi boasts a revolutionary heritage passed down through generations, stunning landscapes, and a rich cultural history. We consistently adhere to enhancing tourism through culture and highlighting culture through tourism, ensuring that beautiful Jiangxi stands out even more. During this year's May Day holiday, Jiangxi received 20.86 million tourists, a year-on-year increase of 24.7% compared to 2019. The tourism consumption also grew by approximately 24.7%.

In creating more attractive tourism products, we leverage our unique "revolutionary, green, and ancient" resources to carefully plan cultural and tourism projects. Jiangxi, known as the cradle of the Chinese revolution, the People's Republic, the People's Army, and the Chinese workers' movement, as well as the gathering and starting point of the Long March, offers visitors the opportunity to learn about revolutionary history and feel the power of original aspirations. Leveraging our rich tourism resources, we have innovatively developed many popular tourism products. For example, there is a place called Wangxian Valley in Shangrao, Jiangxi province. It used to be an abandoned canyon mine, but later, through tourism development empowered by Xianxia culture and its unique canyon landscape, it gradually emerged from its predicament. Now, Wangxian Valley has become an Instagrammable spot for tourists from all over the country. It is crowded with visitors, making tickets and accommodations hard to book. What was once barren mountains has now become a wonderland, and the local community has been benefiting from tourism and walking the path to prosperity.

Jiangxi is striving to create more influential tourism brands. The province is home to the tranquil Lushan Mountains, picturesque Sanqing Mountains and marvelous Longhu Mountains. In Jiangxi, you can visit Poyang Lake, the largest freshwater lake in China; the country's most beautiful countryside in Wuyuan; the "Millennium Porcelain Capital" Jingdezhen; and the ancient Tengwang Pavilion, the Bailudong Academy, and the Donglin Temple. Additionally, Jiangxi produces distinctive tourist products such as Jingdezhen ceramics and Gougunao tea. The province is also enriched with countless ancient poems left by historical figures like Tao Yuanming, Ouyang Xiu, Li Bai, and Bai Juyi. After years of effort, the tourism brand Unique Landscape in Jiangxi has evolved from focusing solely on natural landscapes to combining nature, history, culture, and services. At the beginning of this year, in collaboration with the Palace Museum, we launched a special exhibition themed The Imperial Porcelain Returns at the Jiangxi Provincial Museum, showcasing imperial porcelain from the Ming and Qing dynasties with the oldest dating back some 600 years. The exhibition has been extended until May, with the site being packed with visitors daily, who are vying to see the exquisite exhibits that were produced in Jingdezhen, including the Chenghua doucai sanqiu cup, the red glazed guanyin vase from Kangxi period, and the small bowl with pale yellowish green glaze from Yongzheng period. Part of the exhibits are displayed outside the Palace Museum for the first time. All these highlight the splendor and charm of Jiangxi as the hometown of literati and loyalists and the birthplace of literature and culture.

To provide more friendly tourism services, we always place tourists at the center of our efforts and actively promote honest business among tourism operators across the province. We work to modernize tourism service facilities, implement intelligent management, and provide tourist-friendly services. Our goal is for every tourist to Jiangxi to not only revel in the beautiful mountains and rivers but also enjoy safe, comfortable, high-quality, and efficient services that warm the hearts and satisfy the needs. 

Jiangxi is suitable for travel in all seasons with tourism attractions located all around. We will further enhance the integration of culture and tourism, diversify business formats, and unleash the innovative power of cultural tourism sector. We aim to make Jiangxi's cultural tourism offerings eye-catching and soul-touching, gaining popularity and commercial success. We warmly welcome you to Jiangxi to experience its elegant and attractive landscapes, relive the glorious revolutionary stories at our red tourism destinations, and feel the province's unique charm. Jiangxi is an ideal place that deserves your visit and makes you want to return. Thank you.

Jiangxi Radio and Television Station:

As we know, Jiangxi has a vast countryside and a large agricultural population. After winning the fight against poverty, the task of rural revitalization remains difficult. I would like to ask how Jiangxi will consolidate and expand its achievements in poverty alleviation and effectively promote the comprehensive rural revitalization? Thank you.

Ye Jianchun:

Thanks for your question. We have always been very much interested in rural development. Jiangxi was once predominantly rural, and the development of its rural parts, agricultural industry and farming population is worth paying attention to. As a major agricultural province, promoting the comprehensive rural revitalization is not only a major political task but also an important opportunity for Jiangxi's development. We will learn from and apply the experience of the Green Rural Revival Program in Zhejiang province, working to consolidate our achievements in poverty alleviation while promoting rural revitalization. We will comprehensively upgrade rural industries and accelerate the modernization of agriculture and rural areas.

First, we will make great efforts to prevent a large-scale return to poverty. We will promptly identify and provide early warnings for households at risk of falling back into poverty and work together to promote employment support, post-relocation assistance, and social assistance. So far, we have been relatively successful in this regard. We will continue implementing the three-year action plan for developing various industries in areas lifted out of poverty as a method of assistance. We aim to strengthen the internal momentum for growth in these regions and empower the people living there. While building a moderately prosperous society in all respects, we have ensured that the poor in Jiangxi's old revolutionary base areas have not been left behind. We will also ensure that no one is left behind on the new journey toward modernization. 

Second, we will vigorously promote the high-quality agricultural industrialization. We will promote the growth of the entire agricultural industrial chain and advance the construction of agricultural modernization demonstration zones, modern agriculture industrial parks, and national pilot zones for green development of agriculture. We will cultivate a number of competitive leading agricultural enterprises engaging in intensive processing, improving the capability of increasing the value of agricultural products. Through these efforts, we can strengthen the internal driving force for the development of agriculture and rural areas, which is of great importance as we often say. And only by doing so can we ensure better development. We should strengthen the coordination, integration, and promotion of Jiangxi's agricultural product brands and accelerate the construction of backbone cold-chain logistics networks across rural Jiangxi. We will strive to push Jiangxi's high-quality agricultural products towards high-end development and present them to other parts of the country and the world. I also hope that our friends in the media and their families can enjoy the environmentally-friendly and high-quality agricultural products from Jiangxi.

Also, we will accelerate efforts to build a beautiful and harmonious countryside desirable for life and work. We will advance the five-year program to improve the rural living environment and expedite the enhancement of infrastructure for transportation, supply of water, power and gas, communication, and more, improving public services across rural areas. We will work towards further modernizing the rural areas as much as possible. Our goal is for people in these areas all enjoy a happy life that features a clean and beautiful environment, a prosperous and comfortable lifestyle, and a community of simple and honest people. Thank you!

Shenzhen TV Zhi News:

As we know, Jiangxi's industrial structure has always been dominated by traditional manufacturing, facing challenges in industrial upgrading and transformation. I would like to ask how Jiangxi will promote the enhancement and expansion of its manufacturing sector and accelerate the development of a modern industrial system with local distinctions and advantages? Thank you.

Ye Jianchun:

Thank you for your question, I will invite Mr. Ying Jiong to answer it.

Ying Jiong:

Thank you for your concern about Jiangxi's industry. Jiangxi is the birthplace of industrialization under our Party's leadership, producing the nation's first aircraft, first diesel wheeled tractor, first military motorcycle with sidecar, and first coastal defense missile. Of course, these achievements belong to the past. Today, we are striving to revitalize Jiangxi's manufacturing glory. As introduced by Mr. Ye Jianchun, we are deeply implementing the action plan to improve key manufacturing industrial chains, abbreviated as the "1269" action plan. The "12" refers to strengthening 12 key manufacturing industrial chains, including electronic information, non-ferrous metals, equipment manufacturing, new energy, the petrochemical and chemical industry, building materials, steel, aviation, food, textile and clothing, medicine, and modern furniture. The "6" refers to building six advanced manufacturing clusters: electronic information, copper-based new materials, lithium and photovoltaic new energy, tungsten and rare earth metal new materials, aviation, and integrated refining and chemical new materials. The "9" refers to achieving annual growth of around 9% in the output of industries above designated size by 2026.

In 2023, we upheld the promotion of integrated projects, enterprises, chains, and clusters, achieving a year-on-year increase of 5.4% in the province's industrial added value above designated size, 0.8 percentage point higher than the national average. This growth ranks seventh nationwide, demonstrating strong momentum in industries such as new energy, non-ferrous metals, and electronic information, marking a favorable beginning for the implementation of the "1269" action plan. Next, we will continuously deepen and specify the "1269" action plan, accelerating the establishment of Jiangxi's modernized industrial system with distinct strengths.

First, we will promote industrial upgrading. Focusing on the 12 key industrial chains and six advanced manufacturing clusters, we will implement the "industrial chain chief" mechanism to consistently upgrade traditional industrial chains, enhance competitive industrial chains, and consolidate emerging industrial chains, comprehensively improving the strength of Jiangxi's industry.

Second, we will maintain the transformation of growth drivers, primarily through the digital transformation of manufacturing. Within the next two years, we aim to establish 2,000 exemplary enterprises in digital transformation and implement digital reform in 10,000 enterprises, comprehensively improving the province's manufacturing digitalization.

Third, we will enhance the cultivation of entities. We will strengthen policy and financial guidance, cultivate more market entities, and provide tiered support to leading key enterprises and those using specialized and sophisticated technologies to produce novel and unique products. Meanwhile, efforts will be made to promote the integrated development of large, medium and small enterprises and accelerate the building of a number of provincial and national advanced manufacturing clusters. Thank you.

Science and Technology Daily:

Before the press conference, I learned that from 2012 to 2023, the number of high-tech enterprises in Jiangxi increased from 356 to about 7,000, showcasing strong momentum. Could you please elaborate on the progress and efficiency in promoting sci-tech innovation in the province? And what are your next steps? Thank you.

Ye Jianchun:

Thank you for your question, and I will invite Mr. Song Dexiong to answer it.

Song Dexiong:

Thank you for your question. Over the past three years, Jiangxi has implemented six actions to develop science and technology, driving the province's sci-tech innovation and demonstrating an upward and prosperous momentum, which can be reflected in four aspects. First, in terms of high-level platforms, Jiangxi has positively aligned with the country's strategic adjustments in science and technology, establishing eight national key laboratories, thereby maintaining its leading position in the construction of such laboratories. Second, regarding high-level talents, Jiangxi boasts more than 10 academicians and has seen a twofold increase in the number of national excellent youths in recent years. Third, in terms of high-tech enterprises, Jiangxi leads nationwide in cultivating leading high-tech enterprises and enterprises registered in the national statistical database. High-growth technology-based enterprises are thriving, with a 73.8% increase in the number of technology-based small- and medium-sized enterprises and a nearly threefold increase in the transaction volume of technology contracts. Fourth, in terms of high-quality achievements, we have achieved significant breakthroughs in areas such as the AC313 large civil helicopter, semiconductor light-emitting devices, and high-temperature superconducting heating devices. The world's largest and China's first 10,000-tonne submarine communications cable-laying vessel was launched in Jiangxi. Next, we will continue to pursue technological development, effectively promote technological innovation as the "key variable," and make it the "largest incremental factor" in boosting the high-quality development of Jiangxi.

In building an innovation chain, we will strengthen the development of strategic sci-tech forces with Jiangxi characteristics. We will strive to achieve new breakthroughs in establishing national laboratory research bases and national key laboratories in fields such as rare earths, nuclear resources, and non-ferrous metals. We will intensify original and leading sci-tech research efforts in areas such as nuclear technology applications, the low-altitude economy, and new energy storage to address key industrial technological challenges.

To strengthen our talent pipeline, we will utilize flexible recruitment mechanisms, such as case-by-case discussions and special appointment positions, to retain more academicians and national outstanding youths as chief scientists to lead major innovation platforms and R&D projects. We will continue inviting academicians from the Chinese Academy of Sciences and the Chinese Academy of Engineering and other experts to visit Jiangxi for research and field investigation, promoting the local implementation of a number of project achievements. We aim to optimize provincial high-caliber, first-class sci-tech talent cultivation programs, foster leaders for pursuing academic and technological progress in major disciplines, and attract top sci-tech talents to serve as heads of technology in enterprises above designated size. We will implement a special program for young sci-tech talents at early career stages, establish a direct support mechanism for young talents through the provincial Natural Science Foundation, and increase the proportion of young scientists leading projects. Additionally, we will focus on retaining these young talents by ensuring they can fully display and further cultivate their abilities.

In terms of policy optimization, we will simplify project management processes and establish a mechanism for due diligence and exemption from liability, allowing researchers to focus all efforts on innovation without being distracted. We will expand pilot reforms to grant researchers ownerships or long-term use rights over their on-the-job scientific and technological outputs, giving them greater decision-making power over technical issues and more control over fund allocation. This will foster enthusiasm and drive for innovation. Moreover, we will enhance the comprehensive service system for the commercialization and application of advances in science and technology, ensure effective alignment of supply and demand, and facilitate the application of more research outcomes in Jiangxi.

That's all. Thank you. 

CCTV:

Jiangxi established an inland open economy pilot zone in 2020. What initiatives have been undertaken in more than four years, and what are the future plans for further opening up? Thank you.

Ye Jianchun:

Thank you for your question, and I will answer it. Opening up inland areas is a widely discussed and challenging issue that we strive to address. The central government has placed significant importance on the issue. In my view, the designation of Jiangxi as one of the pilot zones for opening up inland areas is an important task entrusted to Jiangxi by the central government. The pilot zone is a major platform for Jiangxi to enhance domestic and international openness and realize further development. For more than four years, we have advanced the construction of the pilot zone with high standards and quality, fostering all-round, two-way opening up by building connections with other parts of the country and the world. Let me highlight three key areas of progress. 

First, trade and investment have become more convenient. We pioneered a new customs clearance model that bridges different provinces and customs areas and connects land ports with seaports, reducing logistics time to coastal ports from an average of 70 hours to less than 30 hours. Jiangxi's export clearance efficiency now ranks fifth nationwide.

Second, the business environment has seen continuous optimization. We have thoroughly implemented a campaign to improve the business environment by aligning with established standards, with 99% of public biddings fully conducted online. We have enabled online company registration within one day and eliminated unnecessary regulatory efforts for reliable companies.

Third, the capacity of platforms has been significantly enhanced. We have deepened reform and innovation in development areas, reducing 40.6% of management institutions and increasing the added industrial value per mu (one mu equals 666.67 square meters) by 7.5%. We have upgraded the capacities of comprehensive bonded zones in Ganzhou and Shangrao, as well as cross-border e-commerce pilot zones in Nanchang and Ganzhou. In 2023, Jiangxi's cross-border e-commerce imports and exports totaled 46.35 billion yuan, ranking sixth nationwide.

Jiangxi's development is characterized by openness. Moving forward, we will improve the quality and efficiency of the inland open economy pilot zone construction, expedite the building of a pioneer for the reform and opening-up of inland areas, and inject vitality into Jiangxi's development in the new era through opening-up. 

On the one hand, we will promote high-quality "bringing in" and high-level "going global" initiatives. For high-quality "bringing in," we will continue targeted investment attraction in key industries by setting specific goals and lists. We will focus on the main targets of industries and leading enterprises and introduce more upstream and downstream enterprises in a targeted manner. For high-level "going global," Jiangxi's exports last year of the "new three" products — solar batteries, electric passenger vehicles, and lithium-ion batteries — increased by a whopping 73.5%, accounting for 4.3% of the nation's total. We will steadily expand our export share of the "new three" products and encourage more Jiangxi-based enterprises and products to go global. 

On the other hand, we will quickly foster a market-oriented, law-based, and world-class business environment. We are committed to the development of such a business environment as a hallmark of Jiangxi as it pursues development. Specifically, we will address the problem of newly appointed officials neglecting unresolved problems and protect the legitimate rights and interests of enterprises and entrepreneurs, with private entrepreneurs making investment and starting and expanding businesses without hassle. In 2023, the number of newly registered businesses in Jiangxi reached 1.237 million, bringing the total to 4.828 million by the end of the year. These figures clearly indicate that business entities recognize Jiangxi's business environment and have confidence in its development environment. Going forward, we will intensify efforts to optimize the environment and promote high-level "going global" initiatives, advancing the development of Jiangxi's inland open economy pilot zone. Thank you.

CNR:

The governor just mentioned that the lives of the people in Jiangxi are getting better. I also understand that Jiangxi promotes projects to improve people's well-being every year and has accomplished many beneficial deeds for the people. Could you please elaborate on the measures Jiangxi has taken to improve people's lives in old revolutionary base areas? Thank you.

Ye Jianchun:

Thank you for the question. I'll let Mr. Ren answer this.

Ren Zhufeng:

Thank you for the question. As the entire nation realized the goal of building a moderately prosperous society in all respects, the people of Jiangxi have new expectations for "a better life." We actively respond to these expectations by accelerating high-quality development while coordinating various livelihood initiatives, aiming to make our development efforts more meaningful and impactful.

First, we do our best to ensure spendings on basic living needs. As the governor mentioned earlier, these expenditures have always been Jiangxi's top priority, accounting for about 80% of the annual public budget. Since the 18th CPC National Congress, we have spent over 5 trillion yuan, particularly in efforts to promote employment, increase incomes, and alleviate poverty. For example, we have issued over 220 billion yuan in entrepreneurial guaranteed loans, ranking first nationwide.

Second, we focus on addressing pressing concerns of the people. We coordinate efforts across the provincial, municipal, and county levels to deliver benefits to the people each year. Last year's initiatives, including free HPV vaccinations for 487,000 eligible girls and establishing over 1,000 childcare facilities, drew widespread praise. Additionally, we promptly address public demands, continuously expanding fields and enriching content to ensure our efforts align with the people's expectations. This year, we launched services such as care for disabled people, elderly care assistance, and lay-down desks and chairs for schools, aiming to provide tangible benefits to the masses through these seemingly trifles but connects broader influence.

Third, we continue our efforts in promoting implementation. We adhere to the principles of universally beneficial, ensuring basic needs, equalization, and sustainability. We consistently work on one task after another to enhance the equalization of basic public services year after year. For instance, last year, we provided free services for preventing and controlling birth defects among newborns and initiated the construction of grassroots AI-assisted medical systems. We will continue these efforts this year, aiming for long-term effectiveness and striving to enrich the public's sense of gain, happiness, and security in a sustainable and guaranteed manner. Thank you.

Shou Xiaoli:

Two more reporters have raised their hands. We'll take the last two questions.

China Pictorial:

In recent years, Jiangxi province has vigorously promoted the construction of the Jingdezhen National Ceramic Culture Inheritance and Innovation Pilot Zone. How is the construction of the pilot zone going? Additionally, what measures will be taken next to revitalize Jingdezhen, the "Millennium Porcelain Capital?" Thank you.

Ye Jianchun:

Thank you for your questions. I'll address them. Jingdezhen has attracted significant attention in recent years, not only for its ceramics but also due to the continuous development of its cultural tourism and the ongoing innovation in ceramic culture heritage.

The establishment of the Jingdezhen National Ceramic Culture Inheritance and Innovation Pilot Zone is a significant measure to promote the creative transformation and innovative development of ceramic culture. It is also a major strategic task assigned by the central government to Jiangxi. Since the plan on building the pilot zone was approved by the State Council in in 2019, over the past four years, we have vigorously promoted the construction of the "two areas and one center," which refers to the National Ceramic Culture Protection, Inheritance, and Innovation Base, a world-renowned ceramic cultural tourism destination, and the International Ceramic Culture Exchange and Cooperation Trading Center. We have made significant progress in areas such as heritage protection, cultural inheritance, industrial development, talent aggregation, and external exchanges. For instance, in terms of external exchanges, we successfully held cultural exchange activities like the Jingdezhen Ceramic Culture Theme Month in Berlin, Germany, and Cairo, Egypt, significantly boosting Jingdezhen's visibility, reputation, and influence both domestically and internationally.

Next, we will continue to deepen the construction of the Jingdezhen National Ceramic Culture Inheritance and Innovation Pilot Zone, revitalize the "Millennium Porcelain Capital," and make Jingdezhen's unparalleled ceramic culture renowned worldwide.

First, we will preserve the roots of ceramic culture. "One Jingdezhen accounts for half of China's ceramic history." Seizing the opportunity to apply for UNESCO World Heritage designation for Jingdezhen's ceramic industry cultural landscape, we will comprehensively promote the protection of ceramic cultural relics, the diversified inheritance of intangible ceramic-related cultural heritage, and the systematic interpretation of ceramic culture. Our goal is to ensure that the memory of history and the roots of civilization are safeguarded for generations to come. Jingdezhen, the birthplace, inheritance site, and innovation center of ceramic culture, will forever be a revered destination for ceramic artists and pottery enthusiasts worldwide.

Second, we will expand and strengthen the ceramic cultural industry. In recent years, the development of Jingdezhen's ceramic industry has also experienced four kinds of transformation, changing from disorder to order, from decentralization to concentration, from low-end to high-end and from small quantities to large scale. Next, we will focus on industrial chain extension, brand building, business integration, and other areas to make art ceramics more exquisite, daily ceramics better, and industrial ceramics more distinctive to truly expand and strengthen the ceramic cultural industry. At the same time, in order to better promote Jingdezhen ceramics and make them more convenient for people to purchase, we have established official flagship stores of Jingdezhen ceramics in Beijing, Shanghai and other places, as well as overseas in Dubai and United Arab Emirates. There are currently two stores in Beijing, one at Beijing Daxing International Airport and the other in Xicheng district. One in Chaoyang district is under accelerated construction and will be open in two months.

Third, we will expand ceramic cultural exchanges. Jingdezhen ceramic culture is an important cultural symbol for the world to understand China and for China to go global. We will tell China's stories, Jiangxi's stories and Jingdezhen's stories through a variety of ways such as the "never-ending" China Jingdezhen International Ceramics Expo, and truly build Jingdezhen into a living room for national cultural exchange and a famous hub for international cultural exchange. At present, there are tens of thousands of foreign "Jingdezhen Drifters" from more than 40 countries and regions around the world. Among them, many foreign artisans are exchanging innovative creations in Jingdezhen city. This scene is conveying the historical scenario of "craftsmen come from all directions and their wares are distributed around the world." We will pay attention to the process of these foreign "Jingdezhen Drifters" participating in cultural exchanges, tell their stories and continue to expand the global influence of Jingdezhen ceramic culture. Thank you.

Hong Kong Bauhinia Magazine:

Green ecology is Jiangxi's distinct feature and strength. How will Jiangxi capitalize on this unique strength and pursue green development that prioritizes eco-environmental conservation and protection in the next stage? Thank you.

Ye Jianchun:

Thank you for your question. Green ecology is indeed our greatest advantage. I will answer this question. As I said in my introduction, Jiangxi is a "top student" in eco-environmental construction and we will never give in to complacency, nor should we be complacent. We will unswervingly pursue green development that prioritizes eco-environmental conservation and protection, and effectively coordinate high-quality development and high-standard environmental protection.

First, we will make every effort to consolidate and improve the quality of the ecological environment. Since we are a "top student" and have had good performance in the past, we must maintain these good performances. Green ecology is Jiangxi's biggest wealth, greatest advantage and most famous brand. We will continue to keep the skies blue, waters clear and lands clean, fully implement the 10-year fishing ban on the Yangtze River and further promote the comprehensive management of the entire basin of the Ganjiang River, Fuhe River, Xinjiang River, Raohe River, Xiuhe River and Poyang Lake. We will strengthen the identification and resolution of environmental risks in key areas such as hazardous waste and tailings ponds, and strive to improve the law enforcement of ecological environment monitoring and governance to continuously improve the quality of Jiangxi's ecological environment.

Second, we will make every effort to accelerate the development of green ecological industries. In the process of promoting economic development, we have a bottom line, that is, we will never pursue temporary growth at the cost of the environment, and we will never exchange pollution for GDP. When attracting investment, we stick to the bottom line of eco-environmental protection. In the process of transformation and upgrading of traditional industries, Jiangxi adheres to an advanced, smart and green approach, integrating the "ecological +" concept into the whole process of industrial development. We will vigorously develop ecological agriculture, ecological cultural tourism, ecological health care as well as other industries, so that Jiangxi's lucid water and lush mountains can better "produce gold and silver."

Third, we will spare no effort in improving the ecological conservation systems. Jiangxi is the only province in the country that has both a national ecological conservation experimental zone and an ecosystem goods and services value realization mechanism pilot. We are formulating regulations on compensation for ecological conservation, further improving mechanisms for a region-specific approach to environmental management, public interest litigations and carrying out value accounting for overall ecosystem goods and services. We will promote the ecosystem goods and services value realization mechanism pilot across the board, create a "Jiangxi model" of the Beautiful China Initiative with higher standards and strive to provide more Jiangxi-like solutions to the whole country.

That is all from me for this question. The host said that this was the last question. Please allow me to again extend an invitation: The old revolutionary base areas are not old but with infinite charm and a bright future. I hereby sincerely invite friends from all walks of life to come and make investments, start businesses or travel in Jiangxi. I look forward to meeting you again in beautiful Jiangxi. Thank you all.

Shou Xiaoli:

Thank you, Mr. Ye and the other speakers. Thank you to all the journalists for your participation. Today's conference will end here. Goodbye, everyone!

Translated and edited by Xu Xiaoxuan, Wang Qian, Liu Caiyi, Liu Qiang, Yan Xiaoqing, Liu Sitong, Ma Yujia, Wang Ziteng, Liu Jianing, Wang Wei, Xiang Bin, Yan Bin, Huang Shan, Dong Qingpei, 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. Jin Xiangjun, deputy secretary of the Communist Party of China (CPC) Shanxi Provincial Committee and governor of Shanxi province

Mr. Wu Wei, a member of the Standing Committee of the CPC Shanxi Provincial Committee and executive vice governor of Shanxi province

Mr. Tang Zhiping, vice governor of Shanxi province

Ms. Zhao Hongyan, vice governor of Shanxi province

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

May 15, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 17th press conference in the series "Promoting High-Quality Development." Today we are pleased to invite Mr. Jin Xiangjun, deputy secretary of the Communist Party of China (CPC) Shanxi Provincial Committee and governor of Shanxi province, to brief you on Shanxi's efforts in pursuing high-quality development and advancing all-round transformation, and to engage in dialogue and answer your questions. Also present at today's press conference are: Mr. Wu Wei, a member of the Standing Committee of the CPC Shanxi Provincial Committee and executive vice governor of Shanxi province; Mr. Tang Zhiping, vice governor of Shanxi province; and Ms. Zhao Hongyan, vice governor of Shanxi province.

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

Jin Xiangjun:

Ladies and gentlemen, members of the media, good morning! I'm very pleased to meet you all. First of all, on behalf of the CPC Shanxi Provincial Committee and the provincial government, I would like to express my heartfelt gratitude for your long-term attention to and support for the economic and social development of Shanxi.

On May 16, 2023, General Secretary Xi Jinping made his fourth inspection and research trip to Shanxi since the 18th CPC National Congress. On this first anniversary since his visit, it is very meaningful to have the opportunity to share new changes in Shanxi's pursuit of high-quality development and its comprehensive transformation through this press conference, an important platform provided by the SCIO.

General Secretary Xi Jinping has urged us to focus on transformation with extraordinary efforts and enduring achievements, and encouraged us to take the lead in forging a new path in transformational development. Bearing in mind his expectations, we have forged ahead with gratitude along the path of Chinese modernization.

We remain committed to moving toward a new future and accelerating the construction of a modern industrial system that reflects the unique advantages of Shanxi. "New" refers to aiming for new quality productive forces as a fundamental task, with a focus on making efforts and seeking breakthroughs in areas such as scientific and technological innovation, new industrialization and new-type energy system. Scientific and technological innovation leads the way. We have been gathering all the innovative elements in the province to build the Jinchuang Valley , an innovation-driven platform, and have achieved new breakthroughs in a number of important core technologies, such as high-speed maglev trains that run in a low-vacuum pipeline and furnaces to grow 8-inch silicon carbide crystals. New industrialization is the main direction. We are focused on advanced manufacturing, laying out and developing 71 industrial development zones, expanding and strengthening 16 provincial key industrial chains, creating a tiered cultivation system for 18 provincial towns with distinctive features, and launching 79 Shanxi-made premium products and services. A batch of new products are popular nationwide and already enjoy a global reputation. For example, we have produced the world's thinnest stainless steel foil , which is only 0.015 millimeters thick. To give you an idea, that's about one sixth of the thickness of a piece of regular A4-sized paper. During his inspection trip at Taiyuan Iron and Steel Group, General Secretary Xi Jinping praised them for "making refined steel so soft that it can even be wrapped around fingers ." Another example is the world's largest ladle crane with a lifting capacity of 550 metric tons, which is manufactured by Taiyuan Heavy Machinery Group, demonstrating the excellence of made-in-China products. The new-type energy system plays a supportive role. We shoulder our responsibilities to ensure national energy security and promote comprehensive pilot reform in energy revolution. The number of intelligent coal mines, the output of unconventional natural gas, and the installed capacity of wind and solar power all rank among the top in the country. We have taken solid steps in trying out policies for the country and finding the right paths, and in facilitating transformation and gathering momentum in Shanxi.

We remain committed to striving for efficiency and fully stimulating the internal driving force and innovation vitality of business entities. Our main approach is to promote the benefits of business entities by enhancing the efficiency of the government, making the effective market more effective and the proactive government more proactive. We have deepened the reform of state-owned enterprises (SOEs), and the main indicators of provincial enterprises are among the top in the country. We have worked to increase the proportion of private investment in fixed assets and the proportion of the added value of the private economy in GDP by more than 1 percentage point each year. We have accelerated the construction of a high-standard market system. For example, Shanxi is a pioneer in the national power market reform. Last year, Shanxi's electricity spot market officially started operation, becoming the first in the country. The China Taiyuan Coal Transaction Center is the largest coal spot trading market in the country. The China Price-Xinhua Coking Coal Price Index released in Shanxi is the only national-level coking coal index in the country and has become a barometer of the industry. We are striving to create a market-oriented, law-based and world-class business environment. We have taken the lead nationwide in many reforms, such as the "one seal for administrative review and approval" practice, and expanded the coverage of one-stop government services to improve efficiency.

We are committed to pursuing green development and accelerating the construction of a beautiful Shanxi. We have initiated greening programs in the Taihang Mountains and Lyuliang Mountains, promoted ecological improvement for seven rivers including the Fenhe River and Sanggan River, and enhanced ecological conservation for five lakes, including Yanhu Lake and Jinyang Lake. We have made substantial progress in the battle against pollution along the main branches of the Yellow River. According to evaluations by the CPC Central Committee and the State Council, Shanxi's pollution prevention and control efforts have ranked excellent for two consecutive years. Notably, in Shanxi, a heavy industrial hub in north China, the average annual concentration of PM2.5 has decreased to 37 micrograms per cubic meter. As the eco-environment continues to improve, Shanxi now boasts the highest population of North China leopards in the country. The number of brown-eared pheasants, a species under top-level state protection and selected as Shanxi's provincial bird, has grown significantly. Yuncheng Wetland Nature Reserve along the Yellow River has become a major winter habitat for wild white swans from Siberia. This year, black-headed gulls were spotted at the Taiyuan Fenhe Wetland Park for the first time. These changes have significantly enhanced people's sense of gain and earned praise from visitors to Shanxi.

The ultimate goal of promoting high-quality development and advancing all-round transformation is to fulfill the people's aspirations for a better life. We have strived to promote people's well-rounded development and achieve prosperity for all. Each year, over 80% of Shanxi's government expenditures have been dedicated to ensuring people's well-being. Income growth for both urban and rural residents in the province has surpassed GDP growth. Shanxi has been ranked Level A for six consecutive years in a national evaluation for ensuring the timely payment of wages to rural migrant workers. All county-level general hospitals meet Grade 2A standards. The average length of education for people over the age of 15 ranks among the top in the country. Every year, we have delivered tangible benefits to the public, enabling the residents of Shanxi to enjoy increasingly better lives.

That concludes my brief introduction. Now, my colleagues and I will answer your questions.

Chen Wenjun:

Thank you, Mr. Jin. Now, the floor is open for questions. Please identify your media outlet before raising questions.

National Business Daily:

We have noticed that in recent years, Shanxi has adopted many measures to promote scientific and technological innovation. Mr. Governor mentioned the development of Shanxi Innovation Valley , an innovation-driven platform, in his introduction. Could you please elaborate on this? Thank you.

Jin Xiangjun:

Thank you for your question. I'll answer it. The CPC Shanxi Committee and the Shanxi provincial government place great importance on scientific and technological innovation. We have focused on the integrated development of innovation, industry, capital, and talent chains, gathering all available resources in the province to build Shanxi Innovation Valley, a high-level innovation-driven platform. We have developed a three-year action plan and implemented 26 policies and measures, some of which are unprecedented. For example, we have decided to provide 300,000 yuan to 1 million yuan ($41,412 to $138,039) as start-up funds for innovators establishing themselves in Shanxi. Additionally, we have introduced an equity investment error tolerance mechanism, allowing for a project failure rate of up to 80%. We have also allocated 2 billion yuan at the provincial level to set up angel investment funds for scientific and technological innovation projects. Currently, Shanxi Innovation Valley platform has established two sub-venues in Taiyuan and Datong. Other cities in Shanxi province are also gathering their innovative resources to build sub-venues based on their own distinctive features. We sincerely welcome talented teams from home and abroad to engage in innovation, start businesses, and realize their dreams in Shanxi Innovation Valley.

Next, we will continue to reinforce the principal role of enterprises in innovation. We will improve the technological innovation system, research planning methods, and service and security mechanisms, positioning enterprises as the primary actors. There are things we will do and things we won't do. Focusing on advancing all-round transformation, we will strive to achieve breakthroughs in core technologies in key fields such as cleaner and more efficient coal usage and coal-bed gas exploration and exploitation.

We will better stimulate the vitality of researchers. During our investigations, we discovered that researchers are often restricted by various barriers, such as burdensome processes for project applications, assessments, supervision, and evaluations, insufficient autonomy in research funding usage and management, and unclear distribution of research yields. We will establish working teams to delve into labs, enterprises, and higher learning institutions to provide policy guidance and services. Through this approach, we will develop a template for reform that is applicable to other areas in the province. Simply put, we will release researchers from the fetters of administrative chores, enabling them to freely and fully devote their time and energy to scientific exploration.

We will continuously improve the fundamental systems that support comprehensive innovation. We will establish an integrated mechanism for advancing education, science and technology, and talent, with a focus on reforming the evaluation system in the science and technology sector. Guided by innovation value, capability and contribution, we will accelerate the establishment of a talent evaluation system in the science and technology sector. Additionally, we will reform the evaluation system for scientific and technological achievements based on their scientific, technological, economic, social and cultural value. Over the next three years, we will invest 10 billion yuan in implementing the Higher Education 10-Billion-Yuan Special Fund Project, which began last year. We aim to cultivate and attract a number of national-level leading talents, innovative teams and young PhD graduates from high-level universities.

Thank you!

People's Daily:

Shanxi is a major coal-producing province and was designated as a pilot province for comprehensive energy revolution reforms in 2019. Could you please share what progress Shanxi has made in transitioning to green and low-carbon alternatives ? What are the plans for the next step? Thank you.

Jin Xiangjun:

Thank you for your questions. I will ask my colleague, Executive Vice Governor Wu Wei, to answer them.

Wu Wei:

Thank you for your questions. The CPC Central Committee has designated Shanxi as a pilot province for reform, providing us with a new path for green transformation. We have earnestly implemented the new strategy for energy security, taken bold steps to implement pilot reforms, strived to build a new energy system and worked hard to create a pioneering zone for the comprehensive energy revolution reforms in the country. Our goal is to take concrete actions to shift from being a leading coal producer to becoming a pioneer in the energy revolution.

We have comprehensively improved our energy supply level. On the basis of ensuring safety, we rely on smart and green transformations to further improve mining efficiency and ensure energy supply. Currently, all underground coal mining faces in Shanxi have achieved comprehensive mechanization; 54% of coal production capacity has realized intelligent mining; and over 80% of coal production capacity is advanced. This has attracted a large number of smart coal-mining enterprises, including Huawei's coal mine team, to establish themselves in Shanxi. Additionally, we vigorously develop unconventional natural gas and prioritize the development of new energy. The annual output of coalbed methane has exceeded 10 billion cubic meters, and the installed capacity of new and clean energy accounts for 46.4%. Notably, Shanxi ranks first in the country for delivering green electricity to other regions.

We have enacted the country's first local regulation for clean and efficient use of coal, strived to make breakthroughs in key energy technologies, promoted new green, low-carbon and energy-saving technologies, and accelerated the formation of new energy consumption models. Currently, over 90% of new buildings in the province are green buildings, and the coverage rate of clean heating in urban and rural areas is over 90%. Zhuangshang village in Yuncheng city has become the first zero-carbon energy demonstration village in China, and all buses and taxis in 11 cities' built-up areas have been replaced with new energy vehicles. In the first three years of the 14th Five-Year Plan, the province's energy consumption intensity has cumulatively decreased by 10.9%, ranking among the top in the country.

We have deepened the energy system revolution, strategically reorganized four major provincial coal enterprises, explored reforms in mineral rights, conducted pilot projects for the co-extraction of associated resources like coal and aluminum, and established the country's first electricity spot market. We continuously expand opening-up and cooperation in the energy sector, with the Taiyuan Energy Low Carbon Development Forum gaining increased recognition. We have collaborated with international organizations such as the Asian Development Bank and the European Investment Bank to implement a number of green and low-carbon development demonstration projects. We are confident and capable of successfully carrying out the pilot work, achieving new strides in high-quality development for a major energy province. Thank you!

Yicai:

Mr. Jin just mentioned that Shanxi aims to create a first-class business environment that is market-oriented, law-based and international. Could you please elaborate how this work is being implemented? Thank you.

Jin Xiangjun:

Sure, thank you for your question. I would like to invite Deputy Governor Tang Zhiping to answer this question.

Tang Zhiping:

Thank you for your attention to the business environment in Shanxi. In recent years, we have continuously optimized the business environment and actively explored comprehensive reforms such as the implementation of the "one-seal approval system" to enhance administrative efficiency. We have launched the "Business-friendly Insurance" project, providing free insurance to all industrial and commercial enterprises at all levels in the province, covering 68% of the province's business entities, which is a pioneering initiative nationwide. According to the "Business Environment Evaluation by Ten Thousand Private Enterprises" released by the All-China Federation of Industry and Commerce in 2023, Shanxi is one of five provinces that has seen the most significant progress. Optimizing the business environment is a perpetual ongoing process, and we will continue to make efforts to enhance the satisfaction of business entities toward our business environment.

First, we will further relax market access to facilitate business investment. Last year, we established a long-term mechanism by releasing five batches of projects to private capital on a quarterly basis, totaling 460 projects. Moving forward, we will continue to streamline access and operations in sectors such as energy, transportation, tourism, and wellness. We aim to stimulate private capital investment and foster a fair, competitive environment.

Second, we will enhance government services to make business operations more convenient. Focusing on the high-frequency services that matter most to businesses and the public, we have not only completed the 13 nationally mandated tasks, such as credit repair, but also identified 14 additional high-frequency tasks to ensure efficient and effective implementation.

Third, we will further standardize regulatory enforcement to give businesses more peace of mind. We will continue to promote the "one industry, one inspection" initiative and enhance the new regulatory mechanism featuring "Internet Plus Supervision." We are committed to avoiding overlapping enforcement, promptly responding to concerns, and minimizing unnecessary disturbances. We will also strengthen collaboration between the government and the courts to expedite the handling of cases involving businesses, ensuring the protection of their legitimate rights and interests, and creating a more favorable environment for entrepreneurs.

Fourth, we will proactively address challenges faced by enterprises to boost their confidence. By leveraging the "one-stop" service platform for enterprise-related policies, we have made it easier for companies to access and benefit from them. Additionally, we have integrated various platforms, channels, and resources, such as the "12345" government service hotline and the government service experience program, to establish the "Woodpecker" working mechanism. This allows us to actively identify and promptly resolve issues, demonstrating our sincerity and building confidence in business development.

Thank you!

Phoenix Satellite Television:

Shanxi has become increasingly active in international trade and economic cooperation. Could you provide details on the specific measures being taken to expand opening-up and to accelerate the establishment of a new highland for opening-up in inland areas? Thank you!

Jin Xiangjun:

Thank you for your question. I will answer it. As many of you may have noticed, last month, a China-Europe Railway Express train departing from Shanxi arrived in Barcelona, Spain, for the first time. Currently, the province operates 15 regular lines of the China-Europe Railway Express, connecting 48 cities in 16 countries worldwide. It's fair to say that, as an inland province, Shanxi's door to the outside world is opening wider and wider. Regarding the key measures you are concerned about for the next steps, I believe they can be summarized as "four key focuses."

First, we will simultaneously advance institutional opening-up and opening-up based on the flow of production factors. Starting with the establishment of a high-standard market system, we have replicated and promoted 136 practices from free trade pilot zones and introduced 16 high-standard regulations aligned with international standards. We have improved policies and measures to support self-operated export of bulk commodities, facilitate the transfer of manufacturing industries encouraging foreign investment from eastern regions , and promote innovation in the opening-up of service trade.

Second, we will prioritize both external and internal opening-up efforts. On the one hand, we will actively integrate into major national strategies, leveraging our comparative advantages to expand development opportunities. On the other hand, we will proactively implement the eight key steps to support high-quality Belt and Road cooperation, deepen regional cooperation with member countries under the Regional Comprehensive Economic Partnership (RCEP), and promote multimodal transportation connections such as rail-sea, air-rail, and road-rail transportation. We will particularly focus on enhancing passenger routes to Southeast Asia, Japan, and South Korea, expanding freight routes to the Americas and Europe, and improving the functionality of platforms such as comprehensive bonded zones, cross-border e-commerce pilot zones, aviation hubs, international land ports, and overseas warehouses.

Third, we will emphasize the synergy between "going out" and "bringing in." While intensifying efforts to attract foreign investment, we will also support leading foreign trade enterprises in stabilizing and expanding trade in intermediate goods. Additionally, we will continuously expand the export of advantageous products such as everyday ceramics and specialty agricultural products. We will cultivate new growth points in foreign trade like rail transportation, new energy vehicles, and photovoltaics and expand bonded maintenance services for aircraft and mobile phones. Additionally, we will actively develop service trade sectors such as culture and traditional Chinese medicine and vigorously promote the growth of digital trade.

Fourth, we are committed to simultaneously optimizing the business environment and strengthening key entities. Our efforts are focused on enhancing trade and investment facilitation, completely removing restrictions on foreign investment in the manufacturing sector, and improving regulatory services at inland ports. We have achieved 100% coverage of key international trade processes through the single window system. Additionally, we are focused on strengthening foreign trade entities and encouraging leading enterprises to establish regional trade headquarters in Shanxi. A key statistic: last year, over 2,000 enterprises in Shanxi were engaged in import and export activities. An increasing number of new businesses from Shanxi are venturing abroad and embracing the global market. Thank you!

China News Service:

We know that Shanxi has a rich history and abundant resources in Traditional Chinese Medicine (TCM). In recent years, the province has been implementing a strategy to become a leading province in TCM. Could you please provide some information on this topic? Thank you.

Jin Xiangjun:

Thank you for your question. I would like to invite Ms. Zhao to respond.

Zhao Hongyan:

Thank you for your concern and attention to the development of TCM in Shanxi. Shanxi is one of the birthplaces of Chinese civilization, with a rich legacy of TCM passed down through generations. It is the place where the renowned ancient physician Bian Que gained fame and has nurtured many distinguished physicians, such as Fu Qingzhueach with distinct regional characteristics in their academic traditions. For instance, Dr. Wang is well-known for his expertise in gynecology, and Dr. Men is renowned for his specialization in treating various complex diseases. Shanxi is also rich in natural resources, boasting 1,788 varieties of medicinal herbs, including over 30 authentic local herbs renowned for their high quality and large yield. For instance, herbs like Yuanzhi (Polygala tenuifolia) account for 70% of the national production, while Lianqiao (Forsythia suspensa) constitutes 50%. More than 10 other authentic local herbs, such as Hengshan Huangqi (Astragalus membranaceus), have received geographical indication certification. Our famous brands and medicines have stood the test of time. Century-old names like GuangYuYuan and DaNingTang, along with classic national medicines like Guilingji and Dingkundan, are domestically and internationally renowned.

Shanxi has always placed great importance on the inheritance, innovation, and development of Chinese medicine, accelerating the implementation of the strategy to become a leading province in TCM. In terms of top-level design, we have issued the Implementation Plan for Building a Province Strong in TCM and the Shanxi Provincial Regulations on TCM, and we are implementing seven major projects, including enhancing service capabilities.

In terms of system construction, it is particularly noteworthy that one of the first national regional medical centers for TCM in the country was established in Shanxi, namely, the Xiyuan Hospital Shanxi Hospital. Additionally, Changzhi city was selected as one of the first national pilot demonstration areas for the inheritance and innovative development of TCM. We have achieved full coverage of township health centers and community health service centers with grassroots TCM clinics. Our goal is to ensure that high-quality and convenient TCM services are accessible to people right at their doorsteps.

In terms of talent development, we have attracted over 20 national TCM masters, academicians, and Qihuang scholars, cultivated over 500 provincial-level "excellent talents," and implemented a campaign to promote physician mentorship and TCM in towns and villages, impacting nearly 20,000 rural doctors.

Regarding technological innovation, we continue to implement special projects for TCM science and technology. Our independently developed TCM new drug, "Chaigui Granules," has received clinical approval and successfully undergone technology transfer. Additionally, technologies for extracting "forsythoside" and "baicalin" are widely used to deeply process authentic local herbs. In summary, our classical formulas and traditional craftsmanship have experienced renewed vitality by embracing both tradition and innovation.

In terms of industrial development, we are building a comprehensive industry chain for TCM with leading enterprises such as Zhendong Pharmaceutical Co., Ltd. and Yabao Pharmaceutical Group Co., Ltd. Initiatives like selecting "Shanxi Famous Medicines" and "Top 10 Jin Medicines" and hosting the first national Forsythia Industry Conference have significantly enhanced the influence and reputation of "Jin Medicines." In summary, we will continue to inherit and develop the valuable heritage of Chinese medicine left by our ancestors in the new era, contributing Shanxi's strength to a healthy China! Thank you!

Tide News:

We all know that Shanxi has an incredibly rich cultural and tourism heritage. I recently visited Shanxi for my annual leave, and I enjoyed it so much that my phone's screensaver is still a photo of Mount Wutai. I really like Shanxi. I noticed that many places in Shanxi, like Yungang and Pingyao, already have numerous tourists. My question is, what new measures is Shanxi taking to attract tourists while ensuring they have a great experience?

Jin Xiangjun:

Thank you for your question, attention, and love for Shanxi's cultural tourism. I would like to invite Mr. Tang to answer your question.

Tang Zhiping:

Thank you for your interest in Shanxi cultural tourism. In Shanxi, you can explore 5,000 years of Chinese civilization and innumerable cultural relics. Shanxi has cultivated diverse cultures, including the morality and filial piety culture associated with legendary rulers Yao and Shun; the ethics of loyalty exemplified by Guan Yu; a culture respecting capable officials and valuing honest governance; and a respect for integrity and credibility among Shanxi businesspeople. The province boasts three UNESCO World Heritage sites: the Yungang Grottoes, Mount Wutai and the Ancient City of Ping Yao. And these are only part of Shanxi's rich cultural tourism resources. Shanxi also enjoys magnificent landscapes, with Taihang Mountains located on the east and Lyuliang Mountains on the west. Renowned as a natural summer resort, Shanxi experiences neither extremely scorching heat in summer, nor severe cold in winter, with the highest temperature rarely exceeding 26 degrees Celsius. It is famed as the homeland of Chinese wheat foods and a kingdom of sundry grains, while its Fen-flavor liquor and mature vinegar have won great prestige both at home and abroad. We are currently working on building an internationally renowned tourist destination and will make efforts in the following aspects to attract more tourists to visit and experience Shanxi. 

On the one hand, we will continue to increase our publicity and promotion efforts. Shanxi has 531 key cultural relic protection units at the national level, ranking first in the country. Additionally, 80% of the ancient wooden buildings from the Yuan dynasty (1271-1368) and earlier are located in Shanxi. However, due to lack of publicity, few people are aware of this, and tourists often find their experiences quite different from their initial expectations. In the next step, we will enhance the publicity and promotion of Shanxi through different methods and multiple channels, both online and offline, so that more people can learn about Shanxi, become interested in it, and be willing to visit, continuing to enhance Shanxi's reputation as a place of Ancient Civilization and Excellent Scenery.

On the other hand, we will enhance our capacity to provide services. In addition to Shanxi's high-quality tourism resources, we will offer heartwarming services to ensure tourists feel comfortable staying in Shanxi, where they can enjoy the food and accommodation experience and have fun. Through these efforts, we can transform online interest into actual visits and turn short-term attention into a long-term positive reputation. We will implement a series of combined measures to optimize the management of scenic spots, improve the tourism service quality evaluation system, and comprehensively enhance services in catering, accommodation, transportation, shopping, and other sectors, working all out to develop Shanxi's cultural tourism brand with the aim to satisfy tourists.

Additionally, we will deepen the integration of tourism with other industries. In recent years, efforts have been made to boost cultural tourism in conjunction with the commercial, agricultural, sports, and transport sectors. For example, in promoting transport and cultural tourism, we have focused on the fact that Shanxi's numerous tourist attractions are scattered across a large area, and spent seven years constructing the Taihang No.1, Yellow River No.1 and Great Wall No.1 tourist highways, with a total length of 13,000 kilometers, which will be fully completed by the end of this year. These three tourist highways are set to link up 970 tourist destinations, making it convenient for visitors to have an immersive and personalized experience. We warmly welcome everyone to visit Shanxi, explore its magnificent landscape, and experience the beautiful way of life. Shanxi is an ideal destination for your pursuit of "poems and dreams." Thank you.

CCTV:

As we know, 2024 marks the fifth anniversary of the strategy for ecological conservation and high-quality development of the Yellow River Basin. What progress has Shanxi made in the past five years? What are the future plans? Thank you.

Jin Xiangjun:

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

Wu Wei: 

Thank you for your questions. As an important province in the middle reaches of the Yellow River, Shanxi is also a crucial ecological barrier for the Beijing-Tianjin-Hebei region. It is our bounden duty to implement the strategy and effectively conserve and develop the Yellow River Basin. We have always regarded the ecological conservation of the Yellow River Basin as a baseline of high-quality development. We prioritize environmental protection and promote green development, making concerted efforts to cut carbon emissions, reduce pollution, pursue green development and boost economic growth. We strengthened ecological and environmental protection, covering all aspects, all links and all regions. We have carried out ecological treatment and restoration of key mountains, rivers, and lakes, and implemented a major project to ensure clear water flows through the Yellow River with an investment of over 100 billion yuan. Additionally, we have sped up the establishment of a modern, green and low-carbon industrial system with distinctive local features. We have also signed a horizontal ecological compensation agreement with Shaanxi province and the Inner Mongolia Autonomous Region, making positive progress in the construction of key experimental areas for ecological conservation and high-quality development in the Yellow River Basin.

By the end of 2023, Shanxi achieved a soil and water conservation rate of 64.58%, ranking first nationwide in the afforestation scale for three consecutive years. In the province, the proportion of Yellow River basin water bodies with good or excellent quality reached 90%, and air quality was good or excellent on 76.4% of the days, ranking second within the Beijing-Tianjin-Hebei region and surrounding areas. Accelerated progress is being made in transforming Shanxi into a more beautiful province with bluer skies, greener mountains, and cleaner waters. Notably, Taiyuan city is going all out to build itself into an innovation demonstration zone to implement the 2030 Agenda for Sustainable Development , with the Never Aging Spring in Jinci Temple , which had been dry for almost 30 years, beginning to flow again. Past splendor of a "Picturesque Taiyuan," where charming sunsets can be viewed by the Fenhe River, is being revived.

We understand that a thriving Yellow River will help Shanxi flourish, while a scenic Shanxi enriches the beauty of the Yellow River. We will take a holistic approach and carry forward the spirit of Shanxi's Youyu county, a spirit of desertification control through afforestation efforts , to protect the environment while pursuing development. We will firmly tackle the critical task of harnessing the northernly bend of the Yellow River, focus on comprehensive ecological management in counties along the river's main stream, and develop modern water network systems, including implementing the Guxian water control project . Additionally, we will gradually implement Shanxi's carbon peak action plan, thoroughly promoting energy conservation as well as pollution and carbon reduction in key industries such as steel, coking, and building materials. We will intensify efforts to strengthen ecological shields, stimulate green growth drivers, enhance infrastructure construction, deepen regional cooperation, and protect and manage the Yellow River, thus laying a solid foundation for high-quality development through green development.

Thank you!

Hong Kong Bauhinia Magazine:

Last year, the central authorities released a three-year action plan for deepening and upgrading the reform of state-owned enterprises (SOEs). This year marks a critical year to implement the action plan across the board. How will Shanxi effectively advance this major reform? Thank you.

Jin Xiangjun:

Thank you for your question. I'll invite Ms. Zhao to answer this question. 

Zhao Hongyan:

SOEs serve as the main force driving Shanxi's high-quality development and all-round transformation. Following the arrangements of the central authorities, we thoroughly implemented the action plan to deepen and upgrade the reform of SOEs last year, further improving both the quality and efficiency of enterprises' development. The net profit of the provincial enterprises increased by 4.78% year on year, while the net profit attributable to parent companies grew by over 25%, with the profit-to-cost ratio and other indicators hitting their best levels ever. As Mr. Jin just mentioned, some major indicators show that our provincial enterprises rank among the top nationwide. As said in the question, this year marks a critical year to promote the reform of SOEs on all fronts. Therefore, we will strive to deliver in the crucial move of reform with a focus on three respects. 

First, we will focus on enhancing SOEs' core functions , improving the layout of the state capital, and promoting accelerated efforts in three areas. Specifically, we will accelerate our endeavors to make traditional industries higher-end, smarter, and more eco-friendly, to plan for the new fields of strategic emerging industries and future industries, and to ensure security in key sectors such as coal, electricity, water, gas, and food. For example, our provincial enterprises have established 71 smart coal mines now, with advanced coal production capacity exceeding 90% of the total coal capacity. This year, we will build 67 more, aiming for full coverage by the end of 2027. In addition, we have launched initiatives to promote strategic emerging industries and improve their investment and revenue ratio, developing more "green mines" and "lighthouse factories." All these efforts have been made to serve the country's most fundamental interests, the province's most important plans, and the public aspirations.

Second, we will focus on enhancing SOEs' core competitiveness with the dual drivers of sci-tech innovation and value creation. Bearing in mind that enterprises play a principal role in sci-tech innovation and focusing on the development of new quality productive forces, we have implemented a project to promote sci-tech innovation of our provincial enterprises, conducting classified, case-by-case assessments for the first time. As a result, the share of our enterprises' R&D spending in GDP has increased by over 9% annually on average, and the development of 14 original technology sources as demonstration examples has been advanced. The five key national laboratories and provincial labs, including the Key National Laboratory for Intelligent Mining Equipment Technology of Taiyuan Heavy Machinery Group Co., Ltd ., have been fully leveraged, securing a number of landmark achievements at a faster speed. Meanwhile, based on the principle of putting quality first and giving priority to performance , we have intensified efforts to create the "Coking Coal Evaluation Standard" for Shanxi coking coal and develop Fenjiu into the "Soul of Chinese Liquor" brand. In this way, we aim to guide enterprises to place greater emphasis on standards, branding, and business forms and models that can better reflect the underlying momentum and development potentials for long-term value creation. 

Third, we will focus on building modern new SOEs and prioritize the "five emphases." After years of reform, provincial enterprises in Shanxi have been strategically reorganized from 35 to 18. Next, the key is giving full play to the "1+1>2" effect. We will promote better corporate governance systems and better modern corporate systems, and make enterprises' main responsibilities and main businesses more prominent. We will improve the efficiency of market-oriented operating mechanisms, and boost internal momentum for development. We will continue to deliver reform benefits and accelerate efforts to help our enterprises get stronger, do better and grow bigger. Thank you.

Chen Wenjun:

The last two questions, please.

CNR:

During this year's Spring Festival, new agricultural specialties such as hairy crab, salmon and dragon fruit produced in Shanxi demonstrated the new achievements of Shanxi's modern agriculture. Could you please introduce some of Shanxi's considerations and practices in developing quality and distinctive agriculture? Thank you.

Jin Xiangjun:

Thank you for your question. At first glance, it seems unlikely that the hairy crab, salmon and dragon fruit you just mentioned would be produced in Shanxi. Now, not only are they produced here, but they have also exploded in popularity. I would like to thank all friends from the media for their significant promotion.

Shanxi's agricultural products boast distinctive characteristics. As Mr. Tang just introduced, everyone is familiar with Shanxi's traditional agricultural products, such as sundry grains, wheat food, mature vinegar , and fruit. In particular, many people are familiar with the old song lyric about Shanxi, which goes: "People say that Shanxi has beautiful scenery, fertile land, beautiful water and fragrant grains." Shanxi is indeed a place with high-quality and distinctive agricultural products. In the new era, we believe that developing quality and distinctive agriculture, and especially doing a good job in developing local specialties, as instructed by General Secretary Xi Jinping, are crucial to rural revitalization, and especially industrial revitalization.

We have adopted an all-encompassing approach to food and are focused on ensuring food supply. Shanxi is a province with balanced grain production and sales. On the basis of three consecutive increases in sown area, total output and unit yield, Shanxi continues to consolidate its foundation of cultivated land, especially creating quality brands of organic dry farming. Every year, we build and renovate 176,666 hectares of high-standard cropland to increase grain crop yield per unit and strive to achieve a total production capacity of over 15 billion kilograms . Last year we were close to 14.85 billion kilograms. We have coordinated the supply of agricultural products such as fruit, vegetables, fish, meat, eggs and milk, and built a diversified food supply system. We would especially like to see more of Shanxi's premium agricultural products such as Pingyao beef, Xixian pears, Linyi hairy crabs, Yongji white shrimps as well as salmon and dragon fruit, as you just mentioned, go on the dining tables of people elsewhere and meet their needs for high-quality lives. We hope that friends from the media can continue promoting these efforts to a wider audience.

Moreover, we are developing and modernizing agriculture with an all-encompassing approach and strive to improve its quality and effectiveness. Shanxi has comparative advantages in sundry grains, dried and fresh fruit, and traditional Chinese medicinal materials. Besides, Shanxi has both agricultural and animal husbandry areas, and the quality of grass-fed livestock and poultry is good. Based on advantages in these resources, we give full play to the Jinzhong National Agricultural Hi-tech Industries Demonstration Zone , and rely on platforms for promoting fruit in southern Shanxi, grain in Xinzhou city and meat in northern Shanxi to build agricultural strength in towns, high-quality and distinctive agricultural industries in counties, and key industrial chains in the province. We have developed new business models such as rural tourism and rural e-commerce, and are promoting the high-quality development of agriculture through the entire industrial chain.

Increasing farmers' incomes is the starting point and ultimate goal of the work related to agriculture, rural areas and rural residents. Shanxi continues to consolidate and expand its achievements in poverty alleviation, especially by broadening channels for farmers to increase their incomes. Last year, the per capita disposable income of farmers and the per capita net income of people lifted out of poverty in our province increased by 8.3% and 15.6%, respectively. At the same time, we have learned and applied the experience of the Green Rural Revival Program to coordinate the promotion of new urbanization and rural revitalization across the board, provide differentiated guidance, and implement the construction of high-quality demonstration villages and upgrade villages on a rolling basis, taking practical steps that are tangible and reach the people.

For example, we are actively developing e-commerce platforms, improving rural logistics systems, and striving to connect premium and distinctive agricultural products with large markets. The Shanxi Provincial Government Work Report has deployed efforts to ensure more effective full coverage of rural logistics services for two consecutive years, and the provincial government has subsidized the development of rural logistics. This has effectively mobilized more business entities to focus on the development of quality and distinctive agriculture, allowing Shanxi's distinctive, high-quality products to reach a broader market and eventually reach people's dining tables.

Generally speaking, we aim to do our best to enable rural residents to enjoy modern lives where they are. Thank you. 

Xinhua News Agency:

General Secretary Xi Jinping noted at a symposium on further energizing the central region in the new era that the central region should be better linked with the nation's other major development strategies to help the region better integrate into and support the country's new development pattern. What are Shanxi's considerations and plans in this regard? Thank you. 

Jin Xiangjun:

Thank you for your question. As a province in central China, Shanxi, based on its advantages, has built necessary mechanisms, established platforms and promoted cooperation, striving to accelerate high-quality development in serving major national development strategies. 

We remain committed to our roles and shoulder our missions bravely. We have earnestly implemented General Secretary Xi Jinping's requirements proposed at the symposium on further energizing the central region in the new era, taken solid steps to balance grain production and sales and ensure high-quality energy supply, and actively built advanced manufacturing bases in the central region. Shanxi has a rich manufacturing base, such as in ultra-thin stainless steel and Taiyuan Heavy Machinery which I introduced just now. While Shanxi is widely recognized for its energy and coal industries, its manufacturing industry, especially its equipment manufacturing industry, and the "new trio" (electric vehicles, lithium-ion batteries and photovoltaic products), holds comparative advantages, and enjoys a wealth of raw material and resource endowments. Meanwhile, we have accelerated the improvement of Taiyuan's status as a comprehensive transportation hub city. 

The Yellow River flows for 965 kilometers through Shanxi, accounting for nearly one-fifth of the river's total length. We have earnestly implemented ecological conservation and high-quality development in the Yellow River Basin, which is also a major national strategy. We are focused on ecological conservation and consolidating poverty relief achievements in counties along the river, coordinating pollution control with eco-economic construction to protect the Mother River and deliver greater benefits to the people. 

We will seize opportunities and integrate and align ourselves with national development strategies. By capitalizing on major opportunities including promoting the development of China's strategic hinterland and strengthening industrial backup , we will do a good job in aligning plans and policies with projects to achieve integrated and interconnected development with the country's regional strategies. 

To the east, we will do our best to integrate with the major strategy of the coordinated development of the Beijing-Tianjin-Hebei region, focus on cooperation in fields of clean energy, sci-tech innovation, agricultural products, culture and tourism to build Shanxi into an important support base for the Beijing-Tianjin-Hebei region and a strategic hinterland for interconnected development. Last year, Shanxi supplied 88.4 billion kilowatt-hours of electricity to the Beijing-Tianjin-Hebei region, accounting for 56% of the province's exported electricity. Shanxi provided more than 1.5 billion cubic meters of water to replenish water ecosystems of the Yongding River. Tourists from Beijing make 13 million trips to Shanxi every year. After the opening of the Xiong'an-Xinzhou High-speed Railway, the direct train from Taiyuan to Beijing will be shortened to one and a half hours, significantly reducing the time by nearly half. It can be expected that Shanxi's exchanges with the Beijing-Tianjin-Hebei region will become increasingly close in the future.

To the south, we will focus on strengthening exchanges and cooperation with the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze Economic Belt, especially copying and promoting experiences and practices of the construction of free trade areas and opening-up as well as introducing more advanced productive factors. Since last year, we have built major platforms for opening-up, such as the "Shanxi Night." The "Shanxi Night" was held at the 2023 Summer Davos Forum in Tianjin and at the 6th China International Import Expo (CIIE) in Shanghai. It was also held last month at the Canton Fair in the Guangdong-Hong Kong-Macao Greater Bay Area. Through these promotion platforms, clear results have been achieved in culture and tourism promotion as well as economic and trade exchanges and cooperation. 

We will give full play to our advantages to deepen cooperation. Shanxi has advantages in energy and resources, raw materials, primary products as well as culture and tourism resources, and its comprehensive factor costs are relatively low. It has 71 industrial development zones with a planned area of 2,900 square kilometers. Relying on these advantages, we will make good use of the system of supply chain chiefs, and distinctive and specialized towns and development zones, make explorations into jointly building high-tech parks, industrial relocation demonstration zones and industrial "enclaves" to better absorb relocated strategic emerging industries in the Beijing-Tianjin-Hebei region and the eastern region and the application of sci-tech achievements to realize mutually beneficial development. 

That is all from me. I would like to take this opportunity to once again thank our friends from the media for your concern and interest in Shanxi, and also sincerely invite you to visit Shanxi, learn about Shanxi and promote Shanxi. We are willing to join hands with you to help create a better future. Thank you. 

Chen Wenjun:

Thank you to Mr. Jin and the three vice governors, and thank you to friends from the media. That concludes today's press conference. Goodbye.

Translated and edited by Zhang Rui, Li Xiao, Mi Xingang, Wang Yiming, Wang Qian, Xu Xiaoxuan, Liu Sitong, Zhang Tingting, Ma Yujia, Qin Qi, Yan Bin, Yuan Fang, Wang Ziteng, Cui Can, Wang Wei, Yang Xi, Ma Yujia, Li Huiru, Zhang Junmian, Liu Caiyi, 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. Mao Weiming, deputy secretary of the Communist Party of China (CPC) Hunan Provincial Committee and governor of Hunan province

Ms. Zhang Yingchun, a member of the Standing Committee of the CPC Hunan Provincial Committee and executive vice governor of Hunan province

Mr. Chen Xianchun, deputy secretary-general of the Hunan provincial government

Mr. Huang Donghong, director of the Development and Reform Commission of Hunan province

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

May 10, 2024

Chen Wenjun:

Ladies and gentlemen, good morning! Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding the 16th press conference in the series "Promoting High-Quality Development." We have invited Mr. Mao Weiming, deputy secretary of the Communist Party of China (CPC) Hunan Provincial Committee and governor of Hunan province, to introduce Hunan's efforts in pursuing high-quality development and striving to lead in the rise of central China and the development of the Yangtze River Economic Belt, and to answer your questions. Also present today are Ms. Zhang Yingchun, a member of the Standing Committee of the CPC Hunan Provincial Committee and executive vice governor of Hunan province; Mr. Chen Xianchun, deputy secretary-general of the Hunan provincial government; and Mr. Huang Donghong, director of the Development and Reform Commission of Hunan province.

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

Mao Weiming:

Ladies and gentlemen, media friends, good morning! It's a pleasure to meet you all. First, on behalf of the CPC Hunan Provincial Committee and Hunan provincial government, I would like to express my heartfelt thanks to everyone for your long-term care and support for Hunan's high-quality development!

When it comes to Hunan, everyone should be quite familiar. Hunan is located in central China, in the middle reaches of the Yangtze River Economic Belt. It is named Hunan because it is situated south of Dongting Lake, one of China's famous large lakes. Additionally, Hunan's mother river is the Xiangjiang River, which is why Hunan is also referred to as "Xiang." Historically, Hunan has had a tradition of planting hibiscus. Besides extensive planting of hibiscus, there is also a tradition of planting lotus, which is dubbed water hibiscus in Chinese, earning it the beautiful nickname "Land of Hibiscus." When people think of the "Land of Hibiscus," they naturally think of Hunan.

General Secretary Xi Jinping places great importance on the development of Hunan. At every critical moment and significant juncture, General Secretary Xi Jinping has visited Hunan to provide guidance and direction for its development. Especially in March this year, General Secretary Xi Jinping visited Hunan for the fourth time and urged us to continue our efforts in building the province into an advanced manufacturing hub, a sci-tech and innovation center with core competitiveness, and a pacesetter for reform and the opening up of inland regions. We deeply feel that this not only reflects the general secretary's guidance for Hunan's development but also recognizes Hunan's high-quality development achievements. Hunan now has the foundation and conditions to reach new heights and strive for new victories.

From a temporal perspective, Hunan has reached a new historical starting point. The land of Huxiang is brimming with vibrant innovation and creation, and the landscape is filled with scenes of continuous progress and advancement.

First, Hunan is undergoing a transformative leap forward. The province's GDP grew from 2 trillion yuan in 2012 to over 5 trillion yuan last year, reaching 5.013 trillion yuan and marking four consecutive leaps. This growth is not merely quantitative; it is balanced and coordinated in terms of speed, structure, quality, and efficiency. It meets the requirements of the Five Concepts for Development and represents a transformational upgrade with improved quality and efficiency.

Second, Hunan is generating tremendous innovative momentum. The total output of high-tech industries in the province has surpassed 1 trillion yuan, while the number of tech firms has already exceeded 10,000 and is growing rapidly. In recent years, the number of high-tech companies has increased by more than 2,000 annually. The turnover of technology contracts has risen by 75%, and the contribution rate of scientific and technological progress has exceeded 60%.

Third, Hunan is rapidly opening up to the world. Our economic and trade network now spans 235 countries and regions. Additionally, 211 projects and enterprises from the world's top 500 companies have established themselves in Hunan, and our total import and export volume has surpassed the $110 billion mark.

Fourth, Hunan is showcasing its natural beauty. The province's green development index ranks among the top 10 nationwide, with water quality at nationally monitored sites and the number of days with excellent air quality ranking first and second in the central region, respectively.

Fifth, Hunan is enhancing the quality of life for its residents. The income of urban and rural residents continues to outpace economic development, and standards for pensions, medical care, urban and rural subsistence allowances, and public health subsidies have steadily increased.

From a spatial perspective, Hunan has further enhanced its edge in development. Specifically, it boasts unique advantages in central China, holds a prominent position across the country, and exerts a profound influence worldwide.

In terms of its advantage in China's central region, Hunan's strength primarily lies in its competitive industrial clusters. It boasts three industries each worth a trillion yuan, 16 industries each worth 100 billion yuan, as well as four national advanced manufacturing clusters. This places it in a position tied with Zhejiang for third in the country. Notably, Hunan is home to the nation's only industrial cluster for an independent secure computing system. Another strength of Hunan stems from its fine development environment. Focusing on bolstering the private economy, providing services for business entities, and improving administrative services, Hunan has established an internet-based government service platform and launched projects to ease the difficulties of businesses. Hunan has seen a consecutive rise in the rankings of a business environment evaluation conducted by over 10,000 private enterprises launched by the All-China Federation of Industry and Commerce. As of 2023, both Hunan province and Changsha city had made it onto the top 10 rankings of business environment domestically, which greatly bolstered the region's private economy and attracted the return of indigenous business that had previously expanded to other provinces. For example, the private economy nationwide contributes to over 50% of the country's tax revenue, 60% of its GDP, 70% of its technological innovation, and accounts for 80% of its urban employment and 90% of its total number of enterprises. By comparison, the private economy in Hunan has contributed to 70% of the province's GDP, 60% of its tax revenue, and over 90% of enterprise-based technological innovation. Moreover, it accounts for more than 90% of both the total number of enterprises and employment in the private sector. Improving the business environment is a key task that requires our consistent and relentless efforts. In addition, Hunan's strength also comes from its advanced development platforms. It serves as the permanent host for the China-Africa Economic and Trade Expo and the International Summit on BeiDou Navigation Satellite System (BDS) Applications. The main drive of the province's high-quality development is taking shape through its hosting of the World Computing Conference and the establishment of the China (Hunan) Pilot Free Trade Zone, the Changsha-Zhuzhou-Xiangtan independent innovation demonstration zone, the industrial relocation demonstration zones in southern and western Hunan, as well as another 139 industrial parks of various types, levels, and sectors.

In terms of its prominent position nationwide, Hunan boasts competitive industries that top the country in their respective fields. It is home to a total of 72 leading enterprises in the manufacturing industry, ranking first in the central region. Furthermore, Hunan also boasts a domestically pioneering reform experience. Consider the trending low-altitude economy, for example. One of the key prerequisites for developing such an economy is the reform of low-altitude airspace management measures. As the nation's only pilot province for integrated low-altitude airspace management reform, Hunan has obtained 12 reform achievements that rank first domestically. In addition, Hunan has acquired the nation's most advanced technologies and equipment. We have made arrangements for the "top 10 technological breakthrough projects" for four consecutive years in a bid to contribute our share toward achieving high-level sci-tech self-reliance and making breakthroughs in core technologies. Over the years, Hunan has seen 21 "most-pioneering and advanced" achievements in these fields.

In terms of Hunan's profound influence worldwide, its rail locomotives have gained a strong global presence. Hunan houses the largest R&D, production, and export base for rail transit in the country. It has also developed electric drive system and network control system for electric locomotives and rail transit. Specifically, related key parts, core spare parts, and major components are developed and manufactured in Hunan. The share of its electric locomotive industry accounts for nearly one-third of the world's market. Moreover, Hunan is a hub for global engineering machinery enterprises. It is not only home to five of the world's top 50 engineering machinery enterprises but also hosts two of the world's top five, namely Sany Group and Zoomlion. With nearly half of their business operations connected to the global market, these enterprises have truly grown into conglomerates and competitive multinationals. Local engineering machinery enterprises from Hunan are engaged in various mega projects worldwide. Hunan also serves as the home of the BDS, which provides global coverage. Leveraging its advantage as the birthplace of original BDS technologies, Hunan has developed a complete industrial chain involving chip design and packaging, navigation devices, application development, and related operations and services. The province has hosted the International Summit on BDS Applications twice, resulting in significant achievements. In addition, Hunan's rice species also bring benefits to the world. The hybrid rice developed by Yuan Longping, an academician with the Chinese Academy of Engineering, has become a staple food choice for people worldwide, contributing to Hunan and China's part in helping to reduce hunger around the world.

Together with you, we share the same moon despite being a thousand miles apart, and we eagerly await the opportunity to walk hand in hand here. Currently, the province is making continuous efforts to build itself into an advanced manufacturing hub, a sci-tech and innovation center with core competitiveness, and a pacesetter for reform and the opening up of inland regions. It is also writing its own chapter in the development of Chinese modernization. We hope you can visit Hunan, have a taste of its beautiful sceneries and indigenous culture, and experience the vibrant atmosphere of its high-quality development.

That's my introduction. Next, my colleagues and I will answer questions from the journalists.

Chen Wenjun:

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

CCTV: 

As you mentioned earlier, the central authorities have entrusted Hunan with the important mission of building the province into an advanced manufacturing hub, a sci-tech and innovation center with core competitiveness, and a pacesetter for reform and opening-up of inland regions. Mr. Mao also provided an overview of Hunan's phased achievements. Looking ahead, what major measures will Hunan take to fulfill this mission? Thank you.

Mao Weiming:

Thank you for your question. The three goals in the mission were designed by General Secretary Xi Jinping in accordance with Hunan's actual situation. These are consistent development strategies. We aim to set higher targets, better serve the nation's overall development, and play a larger role in driving relevant sectors, all to contribute to fulfilling the mission's three goals.

First, we will continue our efforts to build the province into an advanced manufacturing hub. Hunan has both the foundation and conditions to achieve this goal. As a major manufacturing powerhouse in China, Hunan has developed the BeiDou Navigation Satellite System, ultra-high-speed trains, the Hainiu II deep-sea drilling rig, and the super-sized tunnel boring machine Jinghua, all of which represent Chinese standards and the highest development levels in their respective fields. We will set these high standards as targets and focus on four key aspects to build an advanced manufacturing hub. We will continue our efforts to develop enterprises, industries, industrial chains, and industrial ecology. We understand that current competition among enterprises and regions involves industries, industrial chains, and industrial ecology. Therefore, accelerating the building of an industrial ecology will be our commitment to creating historical milestones. Following the central authorities' unified deployment and requirements , the CPC Hunan Provincial Committee and the provincial government conducted extensive surveys and research in the previous phase. Our aim is to create a modernized industrial system with Hunan's characteristics, which we call the "4×4" modern development system. This includes traditional, emerging, future-oriented, and competitive industries. We will transform and upgrade traditional industries, consolidate and extend competitive industries, develop and expand emerging sectors, and design forward-looking blueprints for future-oriented industries. These efforts will reflect Hunan's role and position as a major manufacturing powerhouse in pursuing high-quality development in the new era and on the new journey.

Second, we will continue our efforts in building a sci-tech and innovation center with core competitiveness. We believe four aspects are vital to this work: industry, talent, technologies, and platforms. Hunan ranks ninth nationwide in terms of general innovation capacity. Through the implementation of high-level scientific research, the province has implemented the "Top 10 Sci-tech Research Projects" for four consecutive years and achieved breakthroughs in 147 projects. For example, in terms of high-caliber platform construction, we have focused on developing major platforms, such as building Changsha into a global research and development center, promoting the "4+4 Scientific Innovation Project (four major labs and four significant scientific facilities)," and developing the Xiangjiang Science Town.

Third, we will continue building Hunan into a pacesetter for reform and opening-up of inland regions. How can Hunan achieve this, given its inland location? We have prioritized four aspects. The first aspect focuses on the development of both supply and demand sides. We will create demand for the supply side and boost supply with demand. The second aspect involves an efficient market and a well-functioning government. We will fully leverage the government's awareness of services and the decisive role of market in the allocation of resources in this new development stage, aiming for maximum efficiency of resource allocation. Third, driven by the Belt and Road Initiative and the China (Hunan) Pilot Free Trade Zone, we will institutionalize our innovation achievements, the effectiveness of reform, and successful experiences to promote reform and opening-up, as well as development. Fourth, we will continue our efforts to foster a world-class business environment that is market-oriented, law-based, and internationalized. By transforming the business environment, we aim to position the inland region as a pacesetter for reform and opening-up. Thank you.

Cover News:

Recently, a symposium on further energizing the central region was held in Changsha. Could you please tell us how Hunan plans to seize the opportunity and take the lead as we promote the rise of the central region and the development of the Yangtze Economic Belt? Thank you.

Mao Weiming:

First of all, thank you for your question. Allow me to answer it. During his inspection tour in Hunan this March, General Secretary Xi Jinping held a symposium on further energizing the central region. As an important province in the central region of China, Hunan is following the guiding principles of the symposium, particularly General Secretary Xi Jinping's call for Hunan to take the lead in promoting the rise of the central region and the development of the Yangtze Economic Belt. We will maintain a proactive and striving-for-excellence stance, fulfilling the mission and responsibility of playing the vital role as a major provincial economy. How can we strive to take the lead? I believe we should focus on excelling in the following three areas.

First, we will strive to take the lead in enhancing economic contribution. As I mentioned earlier, Hunan is located in central China, with a household registered population of 73 million, ranking eighth in the country. Last year, our total economic output ranked ninth nationwide, and our land area of 211,800 square kilometers is the 10th largest in the country. Though in different dimensions, these rankings are very close to each other and together, they indicate Hunan's geographical and economic position in the country, which makes it possible for us to strive to contribute to the overall high-quality development of China. We will always focus on both growth poles and growth points, striving for a regional GDP growth rate above the national average to help boost the rise of the central region. The term "rise" is used for the central region, while "development" is used for the Yangtze Economic Belt. We believe that "rise" implies surpassing general development levels and playing a more significant role. In terms of cultivating growth poles, we are accelerating the integration of Changsha, Zhuzhou, and Xiangtan, aiming for their combined economic output to reach 2.5 trillion yuan by 2025. Currently, Changsha is increasingly popular among young people, and we often say that any city favored by young people is vibrant and has a promising future. The development momentum in the Changsha-Zhuzhou-Xiangtan region is very strong. We will use key breakthroughs to drive overall progress to leap and rise, making this region an important growth pole in central China. At the same time, we will focus on creating new growth points in sectors like Beidou, new energy, and cultural tourism, forming competitive industrial clusters in the central region.

Second, we will strive to take the lead in better fulfilling various functions. Hunan is renowned as the "land of fish and rice" and the "land of nonferrous metals." We will capitalize on favorable conditions and leverage our comparative advantages to improve our role in constructing a comprehensive transportation hub and three vital bases for grain production, energy and raw materials, and modern equipment manufacturing and high-tech industries, respectively, in line with the requirements of the central authority for the central region. For example, as the "land of fish and rice," Hunan's total grain output has exceeded 60 billion jin (30 million tons) for many years, reaching 61.3 billion jin last year. Among them, rice cultivation area and output rank first nationwide, and camellia oleifera cultivation area and output also rank first in the country, making a contribution to filling Chinese people's rice bowls with domestically produced grain. As the "land of nonferrous metals," Hunan accounts for about 40% of the country's hard alloy materials, leading the nation in advanced energy storage materials and advanced steel and iron products. We will continue to break through frontier technologies, aiming for the operating income of the new materials industry to reach 800 billion yuan by 2025, making greater contributions to the building of the energy and raw materials base.

Third, we will strive to take the lead in highlighting green development. Hunan has a forest coverage rate close to 60%, so when you come to Hunan, everywhere you look, there are beautiful landscapes and picturesque mountains and rivers, presenting changing scenery at every step. Additionally, Hunan has a 163-kilometer-long Yangtze River shoreline. "One river, one lake, and four waters" (the Yangtze River, Dongting Lake, and four smaller rivers or tributaries: Xiangjiang River, Zijiang River, Yuanjiang River, and Lijiang River) are our primary focus in building a beautiful Hunan. We adhere to the requirements of promoting well-coordinated conservation and avoiding excessive development as well as protecting the clear water in the river, ensuring that the waters pouring into the Yangtze River at its Hunan sections are clear. Regarding eco-friendly industries, our goal is to make industries more green and high value-added, emphasizing environmental friendliness, transformation, and upgrading. In terms of the industrialization of environmental protection activities, we will focus on exploring the pathway for transforming lucid waters and lush mountains into invaluable assets and vice versa and invest efforts into new business formats such as "ecology + tourism" and "ecology + health." We aim to excel in developing green industries, improving eco-environment, promoting environmental awareness, and establishing related systems. In our opinion, the establishment of well-designed systems can show moral virtues. Centered around the two initiatives of promoting well-coordinated conservation and avoiding excessive development and "one river, one lake, and four waters," we will implement more effective and beneficial measures and ensure that established systems serve as crucial safeguards for building a beautiful Hunan.

Thank you.

CRNTT:

Hunan is known for its rich agricultural produce. Next, as one of the major grain producing provinces in China, which areas will Hunan focus on in order to fulfill the important task of safeguarding national food security? 

Mao Weiming:

I will invite my colleague, Ms. Zhang, to answer this one. 

Zhang Yingchun:

Thank you for the question. An old saying goes: "The bumper harvests of Hunan and Hubei provinces ensure enough food for the whole country." Hunan is one of the two provinces that have kept transferring rice to other provincial-level regions without interruption since the founding of the People's Republic of China (PRC), contributing substantially to national food security. In 2023, the grain sowing area in Hunan reached 71.45 million mu (4.76 million hectares), with grain production of 61.3 billion jin (30.65 million tons). And the sowing area and output of rice both ranked first nationwide. Moving forward, we will focus our efforts on increasing grain production through sustainable farmland use and innovative application of agricultural technology, with 10 measures implemented for each of the two approaches, and resolutely shoulder the important responsibility of safeguarding national food security. 

On one hand, we will implement 10 measures to increase grain production through sustainable farmland use. We will prioritize the protection, improvement, and utilization of farmland, increasing grain production by developing fertile lands. For example, to increase the area of farmland, we will carry out the water resource allocation project around the Dongting Lake to ensure the reclamation and restoration of 1.6 million mu of high-quality farmlands across the Dongting Lake Plain. We will properly promote the rehabilitation of backup farmlands to address the current farmland deficit of 5.82 million mu. We will implement special rectifications to ensure that land for temporary use is adequately restored and reclaimed for agricultural cultivation annually. This year, for quality improvement, we will renovate 3.16 million mu of high-standard croplands to ensure Hunan's 48 million mu of permanent basic croplands can be transformed into high-standard land. We will continue to comprehensively implement the project of construction, management, and protection of small-scale water conservancy facilities for agricultural use and ensure obstacles are removed to smooth irrigation channels of 7,000 kilometers within the year. We will also return plant stalks to fields and address soil acidification with the aim of elevating cultivated land quality by a grade of 0.4. To improve efficiency, we will ensure the management of idle land through land trusteeship and tending farmlands for others to put such land back to use in a timely manner. For alkaline land, we will either grow tolerant crops in such land or transform such land for specific crops to ensure at least 95% of such land is safe to use. Farmlands on mountains will be gradually relocated to the foot of mountains in separate batches to ensure fruit trees can be planted on mountain slopes in an orderly manner. A province-wide initiative will be carried out continuously to safeguard agriculture production and promote rural revitalization, curbing non-agricultural use and prohibiting non-grain use of farmland. 

On the other hand, we are striving to make technological breakthroughs in 10 areas to increase grain production, working to build Hunan into an innovation hub for developing the breeding and agricultural machinery industries. Grain production will be increased by utilizing advanced technologies. In terms of grain seed breeding, we will work on making breakthroughs in low-cadmium rice and saline-alkali-resistant rice breeding technologies, increasing the planting area of low-cadmium rice by one million mu on a yearly basis. We will speed up cultivating ratoon rice as well as rice and rapeseed varieties with short growth cycles, with the aim to increase 500,000 mu of farmland featuring the rotation mode of "ratoon rice-ratoon rice-rapeseed" each year. In terms of promoting high-quality agricultural machinery, we will strive to make breakthroughs in key generic technologies for agricultural equipment, building a hub for producing agricultural machinery suitable for use in hilly terrains. We will actively promote mechanical transplanting and seed throwing, increasing dense planting by 5 percentage points annually. We will move fast to develop and promote loss-reduction devices used for mechanical harvest, lowering grain loss rate by 0.3 percentage point annually on average. For example, in terms of adopting good measures, we will promote centralized seedling breeding for early rice, building related facilities of more than 10 million square meters. We will strengthen the leading role of high-yield farming examples, creating 5,000 pieces of demonstration fields for high-yield, high-efficiency production annually. We will create a number of green production demonstration areas, realizing the full coverage of side-deep fertilization and green methods for pest and disease prevention and control. We will vigorously promote the plan to boost grain production, increasing 100,000 mu of farmland annually under the high-yielding program of "feeding one person with rice yield from around 0.3 mu of field." We will also establish a coordination mechanism for commercial services for agriculture, aiming to improve related services. 

That's all from me. Thank you. 

21st Century Business Herald:

We have noticed that Hunan has gained an advantage in intelligent computing with a rather solid foundation. How do you plan to leverage this advantage to boost and expand the intelligent computing industry and quickly form new quality productive forces? Thank you. 

Mao Weiming:

Thank you for your question. As an important area of today's fierce global sci-tech and industrial competition, intelligent computing encompasses the emerging industries of artificial intelligence and advanced computing, empowers modern industries ranging from audio and video to the application of the BeiDou Navigation Satellite System, and satisfies the requirements of the development of new quality productive forces. Hunan's intelligent computing industry has gained a first-mover advantage, which we summarize into six points: foundations, suitable conditions, strengths, momentums, potentials, and prospects. 

First, we have a solid foundation and favorable conditions. In recent years, we have proactively laid the groundwork for the "triple power" support system: electricity, computing power, and driving force. Electricity powers computing power and computing power in turn underpins the driving force, allowing for the interplay of these three powers. In terms of computing power, we are integrating computing power, algorithms, data, and networks into a unified system. Our artificial intelligence computing power has reached 1200 petaflops, placing us at the forefront nationwide. Meanwhile, Hunan is also the birthplace of the Yinhe and Tianhe supercomputers, with a supercomputing power of 200 petaflops, ranking among the top globally and nationally. Moving forward, we will make scientific, rational, and effective arrangements in terms of general computing power, artificial intelligence computing power, and supercomputing power to support the development of a modern industrial system. Electricity is fundamental to industrial development. In terms of electricity, in recent years, we have advanced the integration of power supply from Ningxia into Hunan, using the wind and solar resources from Ningxia to illuminate the land of Hunan. Projects such as pumped-storage hydroelectric power stations have positioned us as the nation's second-largest in terms of new energy storage capacity. Clean energy has surpassed traditional sources. In particular, we plan to create a "Zero Carbon Island" on Orange Island, integrating our revolutionary legacy with green development and ensuring our legacy thrives alongside a green future. In terms of driving force, we aim to enhance the power of scientific and technological innovation. For example, the domestic support rate for locally produced computers has reached 90%, resulting in "Made in Hunan" computers, key components being "Hunan-made," and core semiconductor components being "Hunan chips."

Second, we have advantages and momentum. This is primarily reflected in three aspects: First, the industry has accumulated strength and is steadily growing at an average annual rate of 20%. Currently, the intelligent computing industry has reached 715 billion yuan, accounting for 7.3% of the national total. In the information and communications technology (ICT) industry, Hunan holds the top market share in domestically produced central processing units (CPUs), graphics processing units (GPUs), and solid-state drive controller chips. Whether it's CPUs or GPUs, Hunan is an important national research, development, and production base. In the audiovisual industry, we hold the highest market share in industrial lenses, image processing chips, ultra-high-definition video decoding chips, and display panels. Second, we have made breakthroughs in key core technologies such as chips and computing power. For example, in the field of video supercomputing, we often say that rendering a promotional video takes only as long as it takes to have a meal. Third, multiple platforms have been fully leveraged. The influence of events such as the International Summit on BDS Applications, the World Computing Conference, and the Internet Yue Lu Summit continues to expand. We have accumulated over 200 national and provincial innovation platforms.

Third, we have potential and room for development. With the rapid growth of intelligent computing, we anticipate the computing industry to reach a scale of 27 trillion yuan by 2030. We will focus on building a national center for independent innovation in intelligent computing, a world-class ICT industry cluster, a leading audiovisual industry cluster, and an industry-leading cluster for applying BDS technology. We have undertaken several initiatives: collaborating with China Electronics and Huawei to establish the "Pengteng" ecosystem, strengthening the first domestically controlled computing industry cluster in the country, and propelling the ICT industry from "being a pioneer" to "being at the forefront." We will implement 10 major scientific and technological projects and 10 application demonstration projects annually, aiming to exceed an industrial scale of 70 billion yuan and achieve more than 90% application coverage by 2025. We metaphorically describe this endeavor as navigating BDS technology from "the sky" to "our everyday lives." Furthermore, we will leverage technology to drive innovation in the cultural industry, transforming the Malanshan Video Cultural and Creative Industrial Park into a media convergence landmark that embodies Chinese characteristics, sets national precedents, and holds international influence. This transformation is metaphorically described as steering the audiovisual industry from "integration" to "creative integration."

Thank you.

Guangming Daily:

We understand that Hunan is currently promoting the integrated development of Changsha, Zhuzhou, and Xiangtan. Could you please share the experiences gained during this process and the next steps to be taken? Thank you.

Mao Weiming:

I'll let my colleague, Mr. Huang Donghong, director of the Hunan Provincial Development and Reform Commission, answer this question.

Huang Donghong:

The integrated development of Changsha, Zhuzhou, and Xiangtan is a major strategic initiative consistently promoted by successive provincial committees and governments in Hunan. Through nearly 30 years of innovative practices, it has paved a new path for regional integration and development.

In terms of public service integration, residents can access medical services in public hospitals using a single card and 202 types of electronic licenses are now mutually recognized across the region. Additionally, 149 government service items can now be processed online and across cities.

Regarding transport connectivity, we have built 233.1 kilometers of rail transit and increased the frequency of operations, with intervals between departures from Changsha to Zhuzhou and Xiangtan being only 18 minutes. Eight major integrated urban roads have been completed, facilitating railway connections in the Changsha-Zhuzhou-Xiangtan region.

In terms of industrial innovation collaboration, we have four national advanced manufacturing clusters in engineering machinery, advanced rail transit equipment, new-generation independent secure computing systems, and small to medium-sized aircraft engines, forming the "Changsha-Zhuzhou-Xiangtan phenomenon of independent innovation."

To promote green ecological transformation, an area of 528 square kilometers has been designated to establish the largest urban "green heart" in the world, the earliest national initiative of its kind. We have developed a green heart protection system supported by local regulations, comprehensive planning, and project access methods. As a result, forest coverage in the green heart has increased by nearly 10 percentage points.

To enhance the city's attractiveness, we have deepened the integration of culture and tourism, transforming Changsha into an internet-famous city with a unique charm that blends history and modernity. During the May Day holiday, the 838-meter-long Huangxing Road Pedestrian Street saw an average daily foot traffic of 1.1 million people.

Looking ahead, our focus will be on the following aspects:

Accelerating the renewal and innovation of industries. We will expand and strengthen national advanced manufacturing clusters, develop new quality productive forces based on local conditions, and establish a pioneering zone for future industries by focusing on integrating culture and technology, intelligent computing, and the low-altitude economy.

Advancing the upgrading and enhancement of innovation. We will actively attract domestic and international innovation talents, as well as encourage R&D headquarters and centers to establish in Hunan, accelerating the establishment of a national-level regional science and technology innovation center.

Promoting urban shared services. We will work together to remove barriers to public services, effectively addressing tangible needs in education, healthcare, and government services. We aim to accelerate the development of a metropolitan area where people enjoy living and working.

Sustaining and enhancing the value of the green heart. We will explore a new path for green transformation in highly urbanized areas, construct the Green Heart Central Park to high standards, and strive to create a national demonstration zone for green transformation development. Thank you.

China Daily:

In January 2024, the State Council approved the overall plan for the construction of the Pilot Zone for In-depth China-Africa Economic and Trade Cooperation. Could you introduce the plans for the next stage? Thank you.

Mao Weiming:

Thank you for your question. Let's invite Mr. Chen to answer.

Chen Xianchun:

Thank you for your question. Hunan's relationship with Africa spans over 1,000 years and is marked by deep and longstanding friendship, a foundation of complementary strengths, and broad market potential. In 2019, Hunan became the permanent host city of the China-Africa Economic and Trade Expo and has hosted three editions. As a result of hosting this expo, Hunan has become one of the most active provinces in China for economic and trade activities with Africa. Hunan has ranked eighth nationwide and first in the central and western regions for five consecutive years in terms of trade volume with Africa. The annual growth rate over the past three years was 23.1%, ranking at the forefront in China.

The Pilot Zone for In-depth China-Africa Economic and Trade Cooperation has been approved by the State Council, providing Hunan province with an important opening-up platform for serving the national economic development strategy. With a vision to build the pilot zone into a testing ground and model area for China-Africa economic and trade cooperation, we will focus on the following three aspects.

First, we aim to realize mutual benefit through the integration of production and trade. We will expedite the construction of public overseas warehouses in Africa and inspect and test laboratory systems. We will enhance cooperation on integrated production, supply, and trade. We will also help enterprises accelerate the development of non-resource-based product processing projects. We will assist more African agricultural products gain access to the Chinese market. Simultaneously, we will organize Hunan's competitive industries and quality goods to actively and steadily enter the African market.

Second, we will achieve mutual benefits through institutional innovation. We will actively carry out pilot policies and differentiated explorations in economic and trade cooperation with Africa, promoting greater China-Africa trade and investment facilitation at a higher level. We will carry out pilot programs to facilitate new types of barter trade with Africa, improving the model of "overseas warehouses plus local currency settlement of offshore accounts" and addressing difficulties in cross-border settlement. We will make full use of the China-Africa Cross-border E-commerce Service Center to help Hunan e-commerce platforms accelerate the localization process in Africa. We will enhance the Hunan-Guangdong-Africa rail-sea intermodal transport service and promote the formulation of multimodal logistics standards and rules between China and Africa.

Third, we will promote mutual learning through cultural exchanges. Since the launch of the China-Africa Economic and Trade Expo, we have organized a series of thematic activities on cultural tourism, women, and youth innovation and entrepreneurship, effectively promoting cultural exchange and mutual trust and cooperation between China and Africa. A batch of African embassies, consulates, as well as national chambers of commerce and associations have been established in Hunan. We will leverage Hunan's advantage in foreign aid training and platforms such as the Vocational Education Alliance for China-Africa Economic and Trade Cooperation and strengthen human resources and professional skills training for Africa. We will develop unique cultural and creative products for Africa and harness the media cooperation advantages of Hunan Satellite TV and Mango TV in Africa to spearhead the Hunan-Africa cultural communication in film and television, in a bid to better tell the stories of China and Hunan.

Next, we will further deepen and improve the long-term mechanism for China-Africa economic and trade cooperation and exchange, making efforts to build a high-level China-Africa community with a shared future. Thank you.

CNR:

We know that Shibadong village in Hunan province is the birthplace of the initiative of targeted poverty alleviation. Could you please tell us about the current progress in consolidating the achievements of poverty alleviation and how to promote the development of Shibadong village in the process of comprehensively advancing rural revitalization? Thank you.

Mao Weiming:

Thank you for your question. Ms. Zhang will answer this question.

Zhang Yingchun:

Thank you for your concern about consolidating the achievements of poverty alleviation. In recent years, Shibadong village has tailored its strategies based on local conditions, continued to develop industries such as rural tourism, special planting, and Miao embroidery to generate wealth, and blazed a new path for rural revitalization and development. Over the past three years, the per capita net income of villagers has increased from 20,000 yuan to 25,000 yuan, and the income of the village collective economy has grown from 2.68 million yuan to 5 million yuan. Last year, we held the Shibadong Forum on Poverty Reduction and Development in Xiangxi Tujia and Miao autonomous prefecture, sharing Hunan's poverty reduction experience with the world. In the next step, we will mainly focus on three aspects to consolidate and build on our achievements in poverty alleviation and to promote the revitalization of rural areas.

First, we will make efforts to prevent people from falling back into poverty. We have developed a monitoring and assistance management platform to prevent poverty relapse. We have focused on monitoring households that have been lifted out of poverty but whose incomes are below 10,000 yuan, or are declining, as well as those who have been relocated. Through the monitoring and early warning information management system, we will formulate specific assistance plans tailored to individual needs. In this process, we found that among the 520,000 monitored households, 60% are at risk of falling back into poverty due to illness, and one of the important reasons is the lack of public health knowledge. Therefore, in the next step, we will vigorously promote health assistance based on industrial and employment assistance, helping everyone to further increase their knowledge of public health, and conduct graded and classified diagnoses and treatment of diseases, significantly improving the health level of those lifted out of poverty in rural areas.

Second, we will make efforts to develop industries. Hunan is located at 28 degrees north latitude, known as the prime geographical belt for cultivating fruits. It is home to a group of influential public brands such as Anhua Dark Tea, Hunan Black Tea, Hunan Camellia Oil, and Hunan Chili. We will seize this advantage and vigorously promote the development of livestock, aquaculture, vegetables, and traditional Chinese medicines in 15 key counties and 2,307 key villages, making the industries bigger and the people richer. For example, we have a key village, Shazhou village in Rucheng county, where the story of "half a quilt" took place. By vigorously developing rural tourism and special fruit planting, it has achieved 80% employment of villagers not far from home, and its per capita net income has increased by 66% in the past four years.

Third, efforts will be made to increase local residents' income. We will launch a three-year campaign to help villagers who have already been lifted out of poverty gain more money. We will organize more skills training and support programs for people returning to their hometowns so that they can work or start businesses to increase their salary income. Villagers are encouraged to focus on planting or breeding preferable varieties with local characteristics, promoting the courtyard economy and manual workshops as ways to increase operative income. Property income of rural residents is expected to increase through utilizing idle rural assets, developing cold-chain logistics and delivery, and integrating agriculture with cultural industry and tourism. We will continue to increase social insurance subsidies in a steady and prudent manner and adjust other agricultural subsidies to increase villagers' transfer income.

By doing so, the increased income of villagers who have already been lifted out of poverty could exceed 2 percentage points more than that of local rural residents. That's my introduction. Thank you.

Chen Wenjun:

Due to time constraints, we will take one last question.

Beijing Youth Daily:

My question is about culture. Hunan enjoys rich cultural resources, including not just historical and revolutionary culture, but also vibrant modern culture. What will Hunan do to give full play to its cultural resources and better undertake its new cultural mission? Thank you.

Mao Weiming:

Thanks for your question. Time-honored historical culture, rich revolutionary culture, and vibrant modern culture are a classic summary of Hunan culture given by General Secretary Xi Jinping. I would like to give you a brief introduction about them.

Hunan enjoys a time-honored historical culture. Chengtoushan National Archaeological Site Park presents an agricultural civilization based on rice planting. Fan Zhongyan, a statesman and literary scholar of the Northern Song Dynasty (960-1127), wrote in his essay "The Yueyang Tower" that "One should first show concern of the state and lastly to enjoy himself." The 17th-century outstanding thinker Wang Fuzhi (1619-1692) proposed the principle of "practical knowledge of managing state affairs," which means scholarly studies should be geared to meeting current needs and be of practical value to state governance and social management. Qing Dynasty scholar and historian Wei Yuan (1794-1857) asked the people in Modern China to "open eyes to see the world." All this cultural heritage will help Hunan to write its chapter in regards to Chinese modernization.

Hunan enjoys a rich revolutionary culture and is hailed as a national museum of revolutionary history without a fence. General Secretary Xi Jinping mentioned the story of Half a Quilt to explain the Red Army and the CPC's close bond with the people. In November 1934, three female soldiers during the Long March of the Red Army sought shelter in the home of an impoverished villager named Xu Jiexiu at Shazhou village in Rucheng county, Hunan province. Upon their departure, they cut their only quilt in two, leaving half with Xu in a gesture of kindness.

Hunan enjoys a vibrant modern culture with a flourishing literary and artistic scene, diverse scenarios for cultural activities, as well as a prospering cultural industry. Hunan is home to a number of Chinese cultural masters including Qi Baishi. The epic dance drama "Da Di Song Ge (the Ode to Hometown)," which debuted in 2020, is based on a story from Hunan's Shibadong Village. Hunan's radio and television station, publishing group, and Malanshan V Zone are all famous brands in China's cultural industry. Changsha, the capital of Hunan province, was recognized as a City of Media Arts in November 2017, making it the first Chinese city awarded with the UNESCO title.

Moving forward, Hunan will shoulder its new cultural mission proposed by General Secretary Xi Jinping and promote the following four "integrations." First, we will deeply integrate culture with education, using cultural resources to teach. Second, we will deeply integrate culture with technology, using cultural resources to upgrade industries. Third, we will deeply integrate culture with rural revitalization, using cultural resources to energize rural construction. Fourth, we will deeply integrate culture with tourism, using cultural resources to attract tourists. We will continuously leverage our strength in the cultural industry and give full play to our five "business cards" to push Hunan's tourism revenue to exceed a trillion yuan. The five "business cards" are: the beautiful landscape represented by Zhangjiajie, red tourism in Shaoshan Mountain, the leisure city of Changsha, the agricultural civilization discovered in Chengtoushan, and Hengshan Mountain, one of the five great mountains of China. Thank you.

Chen Wenjun:

Thank you, Mr. Mao, and all the presenters for your introductions. Thank you to all the journalists for your participation. Today's press conference will conclude here.

Translated and edited by Wang Yiming, Huang Shan, Ma Yujia, Zhu Bochen, Zhou Jing, Wang Yanfang, Zhang Rui, Liu Sitong, Zhang Junmian, Liu Caiyi, Liu Qiang, Liu Jianing, Li Huiru, Wang Ziteng, Wang Wei, Lin Liyao, Wang Qian, Jay Birbeck, and Tom Arnsten. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers:

Mr. Wang Kai, deputy secretary of the Communist Party of China (CPC) Henan Provincial Committee and governor of Henan province

Mr. Sun Shougang, a member of the Standing Committee of the CPC Henan Provincial Committee and executive vice governor of Henan province

Ms. Zhang Min, vice governor of Henan province

Mr. Ma Jian, director of the Henan Provincial Development and Reform Commission

Chairperson:

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

Date:

May 9, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding the 15th press conference in the series "Promoting High-Quality Development." We have invited Mr. Wang Kai, deputy secretary of the Communist Party of China (CPC) Henan Provincial Committee and governor of Henan province, to brief you on fostering new growth drivers and strengths and striving to build a splendid Henan in the rise of central China in the new era, and to take your questions. Also present today are Mr. Sun Shougang, a member of the Standing Committee of the CPC Henan Provincial Committee and executive vice governor of Henan province, Ms. Zhang Min, vice governor of Henan province, and Mr. Ma Jian, director of the Henan Provincial Development and Reform Commission.

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

Wang Kai:

Thank you. Friends from the media, ladies and gentlemen, good morning! It's a pleasure to meet you and discuss Henan's advancements towards high-quality development. First, on behalf of the CPC Henan Provincial Committee and the Provincial Government, I extend my sincere gratitude to the media and all sectors of society for your consistent concern and support for Henan.

Henan province stands out as a key economic hub with a large population, abundant grain production and rich cultural heritage, playing a pivotal role in the historical development of Chinese civilization. Since the 18th CPC National Congress, General Secretary Xi Jinping has visited Henan five times, delivering important speeches, issuing crucial directives and expressing his sincere hope that Henan would "strive to be excellent and achieve even greater splendor." We have always remembered his instructions, anchoring our efforts to ensure the building of a modern Henan in a high-quality and high-level way. Through our commitment and hard work we have achieved three major transformations, namely from a traditional agricultural province to an emerging industrial province, from a traditional transportation hub to a modern transportation hub and from a traditional inland province to an inland open highland. The regional GDP has surpassed the three-trillion-yuan mark.

We emphasize innovation-driven development, accelerating the creation of a national innovation hub and a significant talent center. We have prioritized strategies such as innovation-driven development, promoting science and education and strengthening talent, forming a major innovation framework centered around a science and technology hub, a medical science hub and an agriculture hub in China's central plains. We have 13 national key laboratories, 172 national-level innovation platforms and 20 provincial laboratories. The national supercomputing internet core node project has commenced construction. We have 12,000 high-tech enterprises and 72.7% of industrial enterprises above the designated size are engaged in research and development activities. We have attracted 390,000 high-level talents. In 2023, the number of invention patents granted in Henan increased by 20.3%. Technological innovation has become the primary driving force for Henan's development, leading to changes in development momentum, structure and quality.

We prioritize the real economy, accelerating the development of a strong manufacturing province. The high-quality development of the manufacturing industry is our main direction. We have implemented 11,000 key industrial projects with a total investment of 7.9 trillion yuan. In 2023, investment in high-tech manufacturing grew by 22.6%, 12 percentage points higher than the national average. There are over 11 million business entities, ranking fourth in the country, and 25,000 industrial enterprises above the designated size. Strategic emerging industries such as advanced equipment, electronic information and biopharmaceuticals are the main drivers of industrial growth. Products such as optical communication chips, sensors and superhard materials hold leading market shares nationwide. Yutong's buses, China Railway's shield machine, and xFusion's servers have become shining examples of Chinese manufacturing.

We are committed to accelerating the development of agriculture in the rural revitalization strategy. We prioritize national food security, maintaining a stable grain planting area of over 160 million mu (about 10.7 million hectares), with grain output exceeding 65 million tonnes for seven consecutive years. The wheat output has remained stable at over 35 million tonnes for nine consecutive years, with more than 30 million tonnes of raw grain and finished products being transported out annually. The production of oilseed crops and edible fungi ranks first in the country, while the production of vegetables and poultry eggs ranks second. Companies like Muyuan Foodstuff and Shuanghui Group lead globally, while rising stars like Mixue Ice Cream & Tea and Guoquan Shihui are emerging, with the modern food industry cluster exceeding one trillion yuan in scale.

We prioritize efficient transportation arteries and channels, accelerating the development of a province strong in transportation. Building a modern, comprehensive transportation network is a strategic support for integrating into the new development pattern. The high-speed rail network, resembling a radiating star pattern, has been fully completed. Zhengzhou Airport ranks among the world's top 40 cargo airports while Zhengzhou International Land Port can handle 10,000 trips of China-Europe freight trains annually. Highway freight turnover ranks second nationally. We have constructed six inland ports and nine functional ports. A multi-modal transport system integrating air, land, road, water and ports is rapidly forming, with logistics costs lower than the national average. Our strategic location connecting east and west, and linking north and south, is transforming into an advantage in the hub economy and comprehensive competitiveness.

We are dedicated to improving people's well-being and accelerating the building of happy communities. Guaranteeing and improving people's livelihoods has always been our work's starting point and ultimate purpose. Over 78% of our budget is allocated to fiscal expenditure on livelihoods. Last year, we created 1.19 million urban jobs and 490,000 nonagricultural employment opportunities for the rural workforce. Our compulsory education completion rate reached 96.3%. We have 168 institutes of higher learning, accommodating 3.055 million students. We have built 12 regional medical centers , and elderly care services are now available in all communities. We strive to ensure that children have access to better education close to their homes, older people receive professional rehabilitation and care services within their communities, and everyone benefits from higher-quality medical services without needing to leave the province.

This March, General Secretary Xi Jinping chaired a symposium on further energizing the central region in the new era, aiming to navigate a new journey and chart a new blueprint for its rise. We will continue to implement the important speeches and directives made by General Secretary Xi Jinping during his visit to Henan, put into practice the series of policy measures made by the Party Central Committee in promoting the rise of the central region, develop new quality productive forces according to our local conditions, foster new driving forces of development, and create new comparative advantages. These will contribute to our goal of charting a new course for the splendid development of the Central Plains in the new era, building China into a great modern socialist country in all respects and advancing the great rejuvenation of the Chinese nation on all fronts. 

That's all for my opening introduction. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang, for your introduction. Next, we will move on to the Q&A session. Please identify the media organization you represent before raising your questions.

Science and Technology Daily:

We've noticed that Henan has introduced new measures to boost scientific and technological innovation. Could you share more details about this with us? Thank you.

Wang Kai:

Thank you for your question. Faced with a complex external environment and a new round of technological and industrial revolution, the CPC Henan Provincial Committee has taken a forward-looking approach to planning and decision-making for the next 30 years. We have established the pioneering Science and Technology Innovation Committee, with the Party secretary and the governor of Henan serving as its chairs. This committee has systematically planned and advanced the construction of an innovation system and comprehensive reform. We are striving to accelerate scientific and technological innovation, which can be seen in four main aspects.

First, we have built a "three-pillared" innovation platform. To better align with national strategic technology initiatives, we have developed the Zhongyuan Science and Technology City, Zhongyuan Medical Science City, and Zhongyuan Agricultural Valley as a three-pillared innovation framework. Within a year, Zhongyuan Science and Technology City has risen to 19th among 348 similar cities nationwide, climbing 12 spots. Zhongyuan Medical Science City is now home to eight research institutes and 54 biopharmaceutical companies. It has also translated 55 research outcomes into practical applications. Zhongyuan Agricultural Valley has attracted 53 research platforms and 74 seed companies, cultivating the development of 122 new varieties. These areas have become magnets for Henan's innovation resources, talent, and driving forces of innovation.

Second, we have fostered dynamic forces for innovation development. Henan has continually strengthened the role of enterprises as the main drivers of innovation, facilitating the convergence of various innovation elements toward enterprises. We have provided comprehensive services for science and technology-oriented small- and medium-sized enterprises (SMEs) and high-tech enterprises, leading to the cultivation of 116 leading innovative companies, 454 high-growth gazelle companies, and 26,000 science and technology-oriented SMEs. For instance, DFD Group from Jiaozuo produces key materials for new energy batteries, while Autobio in Zhengzhou manufactures reagents and instruments for extracorporeal diagnosis. Their unique technologies have positioned them at the forefront of market competition.

Third, we have created an environment conducive to attracting and retaining talent. Henan prioritizes talent attraction and cultivation as a fundamental and strategic initiative. We have implemented comprehensive policies and measures to attract, nurture, employ, and retain talent. Over the past three years, we have attracted 28 top experts, 369 pioneering talents, and 16,000 individuals with doctoral or postdoctoral degrees. Currently, the province's total number of talented individuals exceeds 14.1 million, with an increasing number choosing to work in Henan and fulfill their dreams there.

Lastly, we have achieved outstanding innovation results. Henan has vigorously promoted collaborative innovation between industry, academia, and research institutions. We have encouraged enterprises above designated size to collaborate with universities in establishing 1,503 research and development centers. These efforts have led to 76 projects receiving national key research and development funding and the implementation of 78 provincial-level key scientific and technological projects. For instance, Songshan Laboratory in Henan is a provincial facility focused on researching and applying next-generation information technology. They've developed an endogenous cloud-native security platform , creating a robust cybersecurity shield for protected entities. This platform shifts from the traditional reactive defense method of "closing the barn door after the horse has bolted" to a proactive defense system with built-in immunity. The world's first endogenous cloud-native security platform is now up and running in Zhengzhou.

Henan will continue to build top-notch innovation platforms, foster leading innovation entities, and construct an exceptional innovation ecosystem. We aim to make innovation a defining feature of Henan in the new era. Thank you. 

People's Daily:

Henan is a populous province with rich human resources. Recently, it has implemented a vocational certification and skills enhancement initiative. Could you provide an update on its progress and discuss the next steps for its expansion? Thank you.

Wang Kai:

I'd like to ask Mr. Sun Shougang, our executive vice governor, to answer this.

Sun Shougang:

I'd like to thank People's Daily for its long-standing interest in and support for Henan's development. As the saying goes, "A skill in hand is a passport to the world." Henan's rich human resources are its most prominent advantage and the source of its vitality. In 2021, we introduced a vocational certification and skills enhancement initiative, aiming to enhance our workforce's vocational competence and professional skills through vocational training, evaluation, and certification and to transform our population dividends into talent dividends.

First, the skilled workforce is rapidly expanding. We have improved the evaluation system and conducted large-scale skills training covering the entire labor cycle and all types of occupations for workers. Over the past three years, we have trained 13.43 million people. The province now has 18.17 million skilled workers, including 5.5 million high-skilled professionals. Both of these indicators rank among the top in the country, with the number of newly added skilled workers and high-skilled professionals ranking first nationwide.

Second, skills brands continue to shine. We are guiding various regions to build one human resources brand for each county, achieving standardized training, large-scale output, and comprehensive services. Over the past three years, we have delivered more than 13 million skilled workers. Time-honored human resources brands, such as "Civil Engineering and Architecture of Linzhou" and "Waterproofing Skills of Pingyu," and in recent years, we have also cultivated new human resources brands such as "Digital Craftsmen" and "Henan Agricultural Technicians."

Third, skills competitions are widely held. We benchmark against the WorldSkills Competition and the national vocational skills competition, hosting 100 vocational competitions and 1,000 event sessions annually, enabling tens of thousands of participants to obtain skill certificates. We successfully held two provincial competitions and won the right to host the third national competition in 2025, greatly inspiring enthusiasm for skill training and competitions across various job positions.

Fourth, skilled workers are gradually becoming high-quality technical professionals. Here, I will give you two examples. The first example is students majoring in Electron Microscopy from Henan Chemical Technician College, who have secured jobs at research institutes of top universities such as Peking University and Tsinghua University. The second example is Jiang Yuhe, a girl from Henan born after 2000. She dropped out of school to work, but, after systematic training, won the championship at the WorldSkills Competition. She is now a senior lecturer at a technical school. Her remarkable life transformation is inspiring more and more young people to develop their skills and contribute to the country. There are many examples like Jiang Yuhe in Henan.

We will continue to make dedicated efforts, focusing on cultivating new quality productive forces and modern industrial systems, optimizing the structure, and improving quality. This will enable more Henan craftspeople to show their skills across various industries and more Henan young people to develop their talents and realize their dreams. Thank you.

Economic Daily:

I learned that Henan has introduced a series of policy measures to optimize the business environment, such as establishing a platform for "enjoying enterprise-friendly policies without application" and establishing a provincial business environment complaint and reporting center. What other measures has Henan province taken to optimize the business environment? What are the next steps? Thank you.

Wang Kai:

Mr. Ma Jian, please answer this question.

Ma Jian:

Thank you for your question. To judge the quality of the ecological environment, just see if the birds fly here to vote. To judge the quality of the business environment, watch if enterprises come here to invest. In recent years, Henan has continuously treated the optimization of the business environment as a major project and strategic foundational work, achieving significant results. Our efforts can be summarized in four areas:

First, we are enhancing systematic planning and leadership capability. We closely follow the needs of enterprises, continuously deepen reforms, and push for policy iteration and upgrades on an annual basis. We have launched more than 1,000 reform measures in total. Last year, the CPC provincial committee held a plenary session and made special arrangements for comprehensive reforms to support the business environment. We established the pillars to optimize the business environment, using stable policy support to guide corporate expectations, boost corporate confidence, and ensure that enterprises truly benefit from these policies.

Second, we are building the foundation by combining both soft and hard environments. We are committed to simultaneously promoting and improving the soft and hard environments for investment. For instance, we have spent more than a decade turning Henan's star-shaped high-speed rail network from a "paper blueprint" into a "land thoroughfare." The China (Zhengzhou) International Mail Distribution Port has officially opened, becoming the fourth of its kind in the country after Beijing, Shanghai, and Guangzhou. We continue to deepen reforms such as "handling matters in one go," addressing complaints immediately, and implementing policies for enjoying enterprise-friendly policies without application. Our integrated government service capability has ranked in the top group nationwide for two consecutive years. We regularly conduct the "Ten Thousand People Assisting Ten Thousand Enterprises" initiative, which has helped solve over 110,000 problems for enterprises. We are striving to create an environment where businesses can "stay and thrive" by optimizing the hard environment and overcoming soft environment barriers.

Third, we are promoting practical results through evaluation and improvement. We consider enterprise satisfaction to be the golden standard for the business environment. For five consecutive years, we have conducted business environment evaluations, assessing the effectiveness of reforms, identifying problems, proposing policy recommendations, and implementing targeted reforms from the perspective of enterprises, ensuring that they truly feel the benefits. The vitality of business entities has significantly improved. As the governor just mentioned, the number of business entities in the province has exceeded 11 million, ranking fourth nationwide.

Fourth, we are responding to appeals and solving difficult issues. We insist on taking the rule of law as the core focus of optimizing the business environment. We actively explore new models for responding to enterprise demands, establishing the provincial business environment complaint and reporting center, opening complaint and reporting channels, setting up an online platform for complaints and reports, and issuing measures for investigating and handling business environment complaints and reports to form a closed-loop resolution mechanism for corporate complaints, allowing enterprises to "have somewhere to file a complaint and have a solution if they have a complaint." We sincerely stand up for companies, help them resolve issues, and effectively safeguard business entities' legitimate rights and interests. 

There is always room to optimize the business environment. We will make persistent efforts and continue to promote the development of a market-oriented, law-based, and international business environment that meets high standards. This will make enterprise investment more convenient and efficient and public services more comfortable and convenient.

Thank you.

Red Star News:

Henan's annual grain output has remained above 130 billion jin, or 65 billion kilograms, for several consecutive years, accounting for a significant portion of the country's total. What will Henan do to maintain its advantage?

Wang Kai:

Thanks for your question; I will address it. Henan is known as the "granary of the Central Plains ," meaning the province's harvests could guarantee the whole country's grain supply. This season, you can see endless wheat fields along the roads when traveling through Henan by high-speed railway. Whenever I see such a scene, I feel immense gratitude toward this land and its people. Covering one-sixteenth of China's farmland, Henan produces nearly one-tenth of the country's grain and one-quarter of its wheat. Grain production is Henan's trump card, which we cannot and will not lose under any circumstances. To maintain our advantage, we must integrate the use of fertile farmland, good varieties, advanced machinery, and suitable methods.

First, an increase in grain production relies on fertile farmland. Work should be focused on turning farmland into modern fertile land. In 2022, besides over 850 billion mu (about 57 billion hectares) of high-standard farmlands, we established a demonstration zone with 150 billion mu of high-standard farmlands, investing an average of 4,000 yuan per mu in line with the principles of standardization, modernization, intellectualization, large-scale operation, normalization, and environmental protection. Upon completion, grain yield per mu will increase by 220 jin, worth an additional 330 yuan. Meanwhile, the yield of the entire zone will increase by 3.3 billion jin with an added value of 4.9 billion yuan. Henan's grain output in 2022 reached 136 billion jin and is expected to increase by 10 billion jin, aiming for at least 140 billion jin by 2025.

Second, the increase in grain production relies on good varieties. Farmers always say that "all your endeavors will come in vain without good varieties." Henan vigorously initiated a campaign to revitalize the seed industry and became the top province with the most selected varieties in the national list in 2023, holding 12 leading varieties. At present, more than 97% of Henan's farmland is sown with improved varieties , contributing over 45% to the increase in grain output. The annual output of wheat seeds reached 3.6 billion jin, accounting for 38% of the country's total. The province also maintains a nationwide leading edge in the sectors of corn, peanuts and sesame breeds.

Third, the increase in grain production relies on advanced equipment. Currently, Henan has 3.19 million tractors and 7.28 million pieces of supporting agricultural machinery and tools, ranking first in the country. The entire process of wheat and corn production is essentially mechanized.

Fourth, the increase in grain production relies on suitable methods. To ensure high yield, efforts should be made to apply good methods, besides using good varieties. In 2023, Henan carried out a batch of technical models, such as reasonable plant density for corn production, the integration of water and fertilizer, and multi-functional pesticide spraying. As a result, the per unit yield of many high-yield corn demonstration zones in the province exceeded 2,000 jin. The yield per mu increased by an average of 25 jin, and the total yield increased by 1.96 billion jin.

In conclusion, the key to fully leveraging the above-mentioned four advantages is to protect and mobilize farmers' enthusiasm for growing grain. We will consistently make efforts to reinforce agriculture and benefit farmers, enabling grain growers to earn higher incomes and embrace a brighter future. Thank you.

Beijing Youth Daily:

Currently, there are numerous popular cultural and tourism projects across the country. Could you give us an introduction to Henan's unique tourism resources? What measures will the province take to improve the tourist experience and tourism services? Thank you.

Wang Kai:

Ms. Zhang Min will answer your questions.

Zhang Min:

Thank you for your concern and support for Henan's culture and tourism. Henan enjoys a rich history and abundant cultural heritage, including the culture of the Central Plains , the Yellow River culture, Chinese root-kin culture, and culture related to early CPC history. I would like to give a brief introduction from three aspects.

First, we step up efforts to bringing cultural relics back to life. We have created new scenarios of demonstration platforms to highlight cultural relics in museums, heritage sites, and ancient texts. In recent years, the Erlitou Site Museum of the Xia Capital and Zhengzhou Archaeological Park of the Shang Dynasty have showcased their cultural heritage in better and more vivid ways through digital displays, immersive experiences, and mobile communication. Archaeological "blind boxes," ancient-style beauty model kits, and other creative cultural products sold in Henan Museum have become very popular. This year, nearly 3,000 precious cultural relics are on display for the first time in Yinxu Museum, providing tourists with more opportunities to connect with history through tortoise shells, animal bones, and bronze ware.

Second, we work hard to make traditional Chinese culture thrive. Henan always adheres to maintaining the right orientation while pursuing innovation, using modern elements to enrich cultural heritage and make traditional culture relevant to contemporary trends. In recent years, a series of dance shows like "Night Banquet in Tang Dynasty Palace " and "The Prayer ," inspired by ancient poems, songs, and figurines, have gained widespread acclaim. Programs presented by Henan Radio and TV Station to celebrate the Spring Festival have become internet sensations. Tourists flock to Henan to learn Tai Chi, practice Kung Fu, listen to Yu Opera, taste tea, wear Hanfu, a traditional clothing of the Chinese in ancient times, watch peonies, and appreciate the culture of the Tang and Song dynasties in Henan cities. We are currently working on themed routes featuring Yangshao Culture, the Xia and Shang civilizations, and ancient Chinese capitals to better showcase the profound, time-honored, and unique charm of Chinese culture.

Third, we strive to enrich the cultural and tourism market. Cultural tourism allows people to experience daily hustle and bustle and explore idyllic, distant horizons. We're actively shaping the "Walking in Henan, Understanding China " cultural tourism brand, showcasing our essence. We boast traditional attractions like the Longmen Grottoes , Shaolin Temple , and Qingming Riverside Landscape Garden , as well as new landmarks like Luoyi ancient city and the "Unique Henan, Land of Drama " theatre complex, inviting everyone to immerse in the beauty of our heritage. We emphasize green initiatives by developing iconic sites like the Yuntai Mountain and Laojun Mountain . We are also promoting the high-quality development of the Yellow River Cultural and Tourism Belt to showcase our natural splendor. Furthermore, we're dedicated to carrying forward our revolutionary traditions and heritage, inspiring the youth with the spirit of Jiao Yulu, Hongqi Canal , and the Dabie Mountains .

We welcome our friends from the media to explore the rich history and culture of Henan province, and experience the warmth of our people, the beauty of our landscapes, and the dynamism of our development. Let's journey together toward a brighter future. Thank you.

Jinan Times APP: 

The Yellow River is one of the mother rivers of the Chinese nation, and Henan province holds a crucial position in the ecological protection and high-quality development of the Yellow River basin. What measures has Henan taken to protect the Yellow River? What are the next steps? Thank you.

Sun Shougang:

Thank you for your question. In 2019, General Secretary Xi Jinping chaired a symposium in Zhengzhou and urged continuous efforts to ensure the Yellow River benefit the people . Ecological protection and high-quality development of the Yellow River basin have since become a major national strategy. Over the past five years, Henan has pursued the strategic direction of "working together to protect and harness the Yellow River," achieving significant progress in ecological protection of the river. I will summarize our efforts with several keywords.

The first keyword is "tranquility." "With the Yellow River being calm, peace reigns throughout the land." We have constructed 501 kilometers of standardized embankments, completed 98 control and diversion projects, and resettled 300,000 residents from the Yellow River flood plain. Additionally, we have digitized Yellow River management, implementing intelligent prewarning systems and precise scheduling, coordinating flood control and prevention measures in upstream and downstream areas, on both banks and along main and tributary channels, efficiently handling various risks. In 2021, we successfully fought off the most severe autumn flood in the Yellow River since the founding of the People's Republic of China (PRC), ensuring the safety of people's lives and property and the long-term stability of the river.

The second keyword is "water quality." We actively promote the protection and governance of water environments in the main trunk and tributaries of the Yellow River, intensifying efforts to address pollution sources. Currently, 94% of the river's nationally monitored sections in Henan reported water quality of above Class III, and the quality of Yellow River water entering Shandong remains above Class II, achieving the effect of "the Yellow River flowing through the Central Plains region and winding its way into the ocean with much cleaner water."

The third keyword is "green." We have led the way in completing ultra-low emission transformations of enterprises in key industries in the basin, establishing 185 green factories at or above the provincial level and 13 green industrial parks. In 2023, energy consumption per 10,000 yuan of industrial value-added decreased by 23.5% from 2019, and water consumption decreased by 40.8% compared to 2020. This resulted in a more robust green orientation in industry and significantly improved resource and energy utilization efficiency.

The fourth keyword is "beautiful." Through the implementation of ecological protection and restoration projects, we have built over 1,200 kilometers of ecological corridors along the Yellow River, afforested more than 4.6 million mu of land, and controlled water and soil erosion over an area of 9,600 square kilometers. With the improvement of the environment, this area has become an important wintering ground for the whooper swan s, and rare species such as the Baer's pochard , known as the "giant panda of birds," breed and inhabit here. Currently, the Henan section of the Yellow River offers enchanting sights of an abundance of spring blossoms and picturesque scenery. We welcome everyone to take a road trip along the Yellow River No.1 Tourist Highway to experience the magnificent spectacle of the Yellow River.

Next, we will prioritize ecological protection and green development, continuing our efforts to protect the "Mother River." We will focus on ecological sustainability, promote Yellow River culture, develop digital management systems, and create a river that enhances people's well-being. This will allow people along the Yellow River to share more benefits and enjoy its beauty. We aim to share the stories of the Yellow River in the new era and demonstrate Henan's greater responsibility. Thank you!

Nanfang Metropolis Daily:

Henan is a populous province with significant healthcare needs. What measures has Henan taken to make it easier and more affordable for people to access medical treatment ? What are the considerations for the next steps? Thank you.

Ma Jian:

Thank you for your question. As you mentioned, Henan is a populous province, and no issue is small when it comes to the livelihoods of 100 million people. Healthcare and medical treatment are especially issues that concern the people the most. In response, we adhere to a problem-oriented approach, systematically strengthening medical services at three levels to comprehensively improve the quality of healthcare.

First, we have exerted efforts to improve primary-level medical services to ensure that quality treatment services for minor ailments are accessible at community-level medical institutions. In recent years, Henan has focused on promoting the development of county-level medical consortia to enhance the primary-level medical institutions' capacity. We have established 172 medical consortia, achieving full coverage at the county level. We have implemented an initiative to reform and improve the rural medical and healthcare system, providing subsidies for the basic operation of 59,000 village clinics across the province, comprehensively enhancing the service capabilities of township and community-based health service centers. We have also ensured that "every township has a traditional Chinese medicine (TCM) clinic" and "every village has TCM services," thus strengthening the foundation of primary-level medical and healthcare services.

Furthermore, we have focused on attracting high-end medical resources to make medical treatments of serious diseases convenient and cost-effective for patients within the province. Seizing the historic opportunity brought by the national initiative to expand high-quality medical resources to lower-tier cities, we have targeted medical branches with a large patient base and urgent demand, such as oncology, cardiovascular, neurology, obstetrics and gynecology, and pediatrics. We have established 12 national and regional medical centers and introduced 392 new technologies and services, with 98 filling gaps in domestic and international markets. This has achieved our initial goal of ensuring that patients do not need to leave the province to seek treatment for serious illnesses. For example, since the establishment of the Beijing Children's Hospital Zhengzhou Branch, from 2019 to 2023, outpatient visits of children from Henan at Beijing Children's Hospital decreased by 58%, and inpatient admissions decreased by 66.8%. This has significantly reduced medical expenses for patients and greatly alleviated the burden on family members.

Third, we have cultivated top-notch medical expertise to develop a strong and technology-powered medical sector. Since last year, we have accelerated medical and technological innovation efforts, introducing a series of measures and integrating provincial resources to promote the reconstruction of the Henan Province Medical Sciences Academy and the integrated development of the Central Plains Medical Sciences City. We are comprehensively reshaping the medical scientific innovation system in Henan. At the same time, we are establishing a national traditional Chinese medicine (TCM) medical center and building the TCM Academy, as we are striving for new accomplishments in medical science and the biopharmaceutical industry.

We will always prioritize people's concerns, focusing on public health. We will accelerate the development of a hub for medical and health innovation, expand and promote accessibility of high-quality medical resources, and strive to ensure that people receive timely, affordable, and effective medical treatment when needed. In particular, we will leverage Henan's TCM resources, strengthen collaboration between TCM and Western medicine, and emphasize both prevention and treatment. Our goal is to minimize the occurrence of illnesses and keep people as healthy as possible.

Thank you.

CCTV:

Earlier, Mr. Wang mentioned that Henan will accelerate the construction of a manufacturing powerhouse in the province. Could you please introduce what advantages Henan has in the manufacturing industry and which areas will be the focus of future efforts? Thank you.

Wang Kai:

Thank you to the journalist friend for the questions and to China Media Group for its continuous support for Henan. I will answer your questions. Henan has well-fledged industries with a well-established system. Of the 41 major industrial categories, Henan has 40, and of the 207 subcategories, Henan has 197. Henan's industries serve as the starting point, supporting point, and conjunction point for many industrial cycles. We aim to accelerate the building of a strong manufacturing industrycharacterized by high levels, streamlined structure, strong innovation, deep integration, and good resilience. Our focus can be summarized by the numbers "five," "six," and "seven."

"Five" refers to focusing on the five foundations: basic components, basic electronic components, basic materials, basic processes, and basic software. We will strengthen collaboration between industry, academia, research, and practical application, concentrating on breakthroughs in key core and bottleneck technologies and rebuilding industrial foundations. In 2023 alone, we achieved breakthroughs in 50 "five foundation" technologies, including the production technology of silicon carbide new materials, breaking foreign monopolies. By 2025, we expect to achieve breakthroughs in another 100 items, promoting more Henan products to enter the mid-to-high-end market.

"Six" refers to making breakthroughs in the areas of new infrastructure, technologies, new materials, new equipment, new products, and new business models. This is a strategic choice to seize opportunities and promote the high-end, intelligent, and green transformation of industries. Luoyang CITIC Heavy Industry , through its intelligent transformation, has achieved a 25% increase in production efficiency and a 10% reduction in energy consumption. It has been selected as one of the country's first batch of "digital leading" enterprises. Henan is accelerating the full coverage of digital transformation and R&D activities in industrial enterprises above the designated scale. By 2025, the coverage rate of intelligent application scenarios is expected to reach 100%.

"Seven" refers to leveraging seven trillion-yuan-level industrial clusters as the foundation and building the "7+28+N" modern industrial system. The "7" represents seven trillion-yuan-level industrial clusters, including new materials, new energy vehicles, electronic information, advanced equipment, modern medicine, modern food, and modern textile industries. The "28" represents 28 100-billion-yuan-level key industrial chains, including superhard materials. The "N" represents specialized and emerging sub-sectors such as nanomaterials and synthetic biology. The "7+28+N" industrial clusters have been at the forefront of promoting new industrialization in Henan. It is estimated that by 2025, the industrial scale will exceed 7 trillion yuan. 

Additionally, we have taken a project-oriented scheme in which we should sign a batch of projects, get a batch of projects off the ground, and put a batch of projects into operation each quarter. Under that scheme, we have implemented 17,400 projects in 12 quarters, over 60% of which were industrial ones. With an optimized and adjusted investment structure, traditional industries are accelerating their transformation, emerging industries are being nurtured faster, and future industries are rapidly developing. As a result, the overall quality of the economy has significantly improved. 

Thank you.

Shou Xiaoli:

Two last questions, please.

China Daily:

We have noticed that Zhengzhou recently launched a direct flight to Luxembourg, which is Luxembourg's first intercontinental passenger route. Could you please share what initiatives Henan has undertaken to promote the construction of the Air Silk Road and support the Belt and Road Initiative? Thank you.

Wang Kai:

Please let Ms. Zhang answer this question.

Zhang Min:

Thank you, China Daily, for your long-term interest in and support for Henan. I would like to give you an introduction here. First is about this air route. The Zhengzhou-Luxembourg Air Silk Road symbolizes Henan's commitment to promoting high-level opening-up. Since its opening in June 2014, with Zhengzhou and Luxembourg as "dual hubs," this air route has built a bridge to reach over 200 cities in 24 countries, known as "one point connecting three continents, one line connecting Europe and America." Salmon from Northern Europe, cherries from South America, and the latest Italian fashions can be distributed across China within 12 hours after entering Zhengzhou Airport. Our Henan-made smartphones, precision machinery, and beauty products can also reach the world through this Air Silk Road.

Second, we are reaching out to each other. Zhengzhou and Luxembourg leverage their geographical advantages and cooperate closely for mutual benefit. Their cargo and mail throughputs rank among the world's top 40 and top 20 respectively. Utilizing the Air Silk Road, Henan is also actively developing clusters of aviation-preferred industries such as electronic information, biomedicine, and modern services, gathering strong momentum to develop new quality productive forces. With the efficient operation of the Zhengzhou-Luxembourg tourism visa platform and the successful launch of direct passenger flight routes, connectivity and communication between Henan and the world have become more convenient and closer. Currently, 198 Fortune 500 companies have established a presence in Henan, and Henan's enterprises have also expanded their business to over 100 countries and regions globally. Not long ago, the "Small But Beautiful: Treasures of Cultural Heritage from Luxembourg" exhibition made a splendid debut in Zhengzhou, as part of efforts to strengthen bilateral exchanges through cultural relics. Next month, the second Zhengzhou-Luxembourg Air Silk Road Forum for International Cooperation will be held in Luxembourg. All these efforts show that our relationship is moving from "hard connectivity" to a "heart-to-heart connection."

Third, we are advancing on four roads. Henan is vigorously developing four "Silk Roads" — in the air, on land, at sea, and online — relying on the Air Silk Road. These efforts form a new pattern of multi-dimensional openness as part of the joint initiative to build the Belt and Road. The China-Europe freight trains are fully loaded both ways, creating an international logistics network that connects over 40 countries. Cross-border e-commerce operates under the principle of "buy globally, sell globally," with annual transaction volumes exceeding 230 billion yuan. We are currently constructing six modern ports, including Zhoukou Port, to enable inland river shipping routes to reach the sea, opening new channels for the Central Plains of China to have access to the ocean.

Moving forward, we will further expand the Air Silk Road from Zhengzhou to more cities in Europe and Southeast Asia, strengthen the hub economy, enhance high-level openness, and build a more competitive inland opening-up highland. Thank you!

21st Century Business Herald:

The Zhengzhou Airport Economy Zone is the only experimental zone approved by the State Council that focuses on the aviation-related economy. How is it going? What are the development goals and measures for the next step? Thank you.

Wang Kai:

Mr. Sun is the secretary of the Party Working Committee of the Zhengzhou Airport Economy Zone. He will answer these questions.

Sun Shougang:

Thank you for your questions. In 2013, the State Council approved the establishment of the Zhengzhou Airport Economy Zone. It has developed from scratch for more than a decade, rapidly increasing its comprehensive strength. In 2023, it achieved a regional GDP of 129.5 billion yuan, with an average annual growth rate of 14% over the decade.

First, we focus on the hub. As you know, Zhengzhou has a natural geographical advantage and serves as a major comprehensive transportation corridor in the country. Zhengzhou Airport has opened 49 international cargo flight routes, and its annual international cargo and mail throughput ranks among the top 40 globally. We are currently constructing the Zhengzhou International Land Port, which aims to be a modern, international, world-class logistics hub. It will be developed into a full-featured, high-capacity assembly center for China-Europe freight trains, connecting domestic and international routes and serving the eastern, central, and western regions of China. It will be capable of handling 10,000 China-Europe freight train departures annually. Zhengzhou Airport Economy Zone Station was the first to launch high-speed rail express cargo services, and the number of vehicles monitored under the TIR (International Road Transport ) system accounts for over 70% of the national total. The Airport Economy Zone has established a major hub pattern integrating the airport, high-speed railways, the international land port, and highways.

Second, we focus on industries. In 2023, the total output of the electronic information industry in the Airport Economy Zone reached 533.4 billion yuan. It has established a complete industrial ecosystem from key core components to end products, essentially forming an airport-related industrial system led by electronic information. With a focus on promoting the high-quality development of manufacturing and accelerating the cultivation of new quality productive forces, we will strive to build an electronic information industry cluster with international influence, which is expected to generate an annual output of 1 trillion yuan, an manufacturing base producing 1 million of new energy vehicles each year, a biopharmaceutical industry cluster with an annual output of 100 billion yuan, and an aerospace industry cluster with an annual output of 10 billion yuan.

Third, we focus on opening-up. The Airport Economy Zone has established a diverse, comprehensively functional, and highly efficient port system, becoming a vital gateway for inland regions to open up. The Xinzheng Comprehensive Bonded Zone has maintained an A-level ranking in performance assessments for four consecutive years. In terms of import and export, it has been consistently listed among the top of all comprehensive bonded zones nationwide, and it ranked first last year. We will leverage our position as a key node in the Silk Road Economic Belt, deeply integrate into the joint development of the Belt and Road Initiative, and develop pioneering zones for the Air Silk Road. We will accelerate digital empowerment for "soft connectivity," advance institutional opening-up, create a market-oriented, law-based and world-class business environment, and establish high-level platforms for opening-up and cooperation.

In the first quarter of this year, the GDP of the Zhengzhou Airport Economy Zone increased by 19.2% year on year, the added value of industrial enterprises above the designated size increased by 34.2%, and fixed asset investment grew by 10.2%. The Zhengzhou Airport Economy Zone is gathering more factors of innovation at a fast pace, showing strong growth momentum. Its future is promising and full of potential.

That's all for my answer. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang. Thank you to all the speakers. I also want to express gratitude to all journalists for your participation. Today's press conference concludes here. Goodbye, everyone.

Translated and edited by Wang Yiming, Yuan Fang, Guo Yiming, Ma Yujia, Wang Mengru, Lin Liyao, Wang Ziteng, Zhang Junmian, Liu Caiyi, He Shan, Zhang Rui, Wang Wei, Li Huiru, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers:

Mr. Wang Zhonglin, deputy secretary of the Communist Party of China (CPC) Hubei Provincial Committee and governor of Hubei province

Mr. Shao Xinyu, a member of the Standing Committee of the CPC Hubei Provincial Committee and executive vice governor of Hubei province

Mr. Wei Shengbin, vice governor of Hubei province and secretary-general of the Hubei provincial government 

Mr. Li Donghui, director of the Hubei Provincial Development and Reform Commission 

Chairperson:

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

Date:

May 7, 2024

Xie Yingjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 14th press conference in the series "Promoting High-Quality Development." Today, we are very glad to be joined by Mr. Wang Zhonglin, deputy secretary of the Communist Party of China (CPC) Hubei Provincial Committee and governor of Hubei province, who will brief you on advancing Hubei's efforts in Chinese modernization and building Hubei into a strategic stronghold for the rise of Central China, and then take your questions. Also present today are Mr. Shao Xinyu, a member of the Standing Committee of the CPC Hubei Provincial Committee and executive vice governor of Hubei province; Mr. Wei Shengbin, vice governor of Hubei province and secretary-general of the Hubei provincial government; and Mr. Li Donghui, director of the Hubei Provincial Development and Reform Commission.

Now, I'll give the floor to Mr. Wang Zhonglin.

Wang Zhonglin:

Thank you, Mr. Xie. Good morning. It is my pleasure to have this opportunity today to brief you on Hubei's high-quality development. First, on behalf of the CPC Hubei Provincial Committee and the Hubei provincial government, I would like to extend my deep appreciation for your long-standing interest in and support for Hubei's development.

General Secretary Xi Jinping has always attached great importance to Hubei's development, and has conducted five inspection tours in the province since the 18th CPC National Congress, providing stewardship for its growth. Over the years, we have kept in mind expectations, forged ahead with gratitude and made solid advances in promoting Hubei's high-quality development.

First, focusing on boosting the province's overall strength, Hubei has seen a promising development trajectory. Always taking development as the top priority, Hubei has strived to cope with changing circumstances, to ensure stable growth and to enhance the quality of development. As a result, the province has achieved steady progress. In recent years, despite being hit hard by the pandemic, Hubei has particularly withstood pressures and sustained the momentum of recovery. In 2020, facing a sharp decline of 39.2% in GDP in the first quarter, Hubei managed to persevere thanks to the strong leadership of the CPC Central Committee and the staunch support from multiple ministries, commissions and sister provinces. By the end of 2020, the province's GDP recovered to 95.6% of the year before. In 2021, we made all-out efforts to make up for the loss caused by the pandemic and regained positive growth. The GDP in 2021 grew by 12.9% year on year, surpassing the five-trillion-yuan threshold. In 2022, we effectively responded to the prolonged impact of the pandemic and other unexpected factors. The province's economic output in 2022 was the 7th largest domestically, realizing a robust recovery as economic growth was back on track. In 2023, the recovery momentum continued to prevail, with each quarter showing faster economic growth. The GDP grew by 6% annually, ranking among the top in the country. In the first quarter of this year, Hubei's GDP saw a year on year increase of 6.1%, indicating a robust start for 2024 and promising economic performance. Through relentless efforts, we have fulfilled the earnest expectations put forward by General Secretary Xi Jinping during his inspection tour to Hubei in March 2020 to guide the fight against the pandemic. Specifically, he hoped that Hubei would achieve complete victory against the pandemic, would rise from the ashes, and would make even greater achievements in the new era. In this sense, Hubei's development has reached a higher starting point.

Second, through supporting industrial innovation by achieving advancements in science and technology, Hubei has broken into a sprint with high-quality development. Taking sci-tech self-reliance as our mission, we have strengthened the deeper integration between sci-tech and industrial innovation, further expediting the cultivation and thriving of new quality productive forces. The province's sci-tech innovation has gained momentum and achieved breakthroughs. Wuhan's domestically influential sci-tech innovation center has sped up its construction. The province's sci-tech cluster is also taking shape at an accelerated pace with a national lab, 10 provincial labs, eight big science facilities, 163 national-level innovation platforms and 477 new R&D institutions. Notable progress has also been made in 29 key core technology projects, including world-leading breakthroughs seen in flash memory chips, brain-computer interface (BCI) and myocardial rotational excision surgery. The volume of contracted technology transactions in 2023 grew 59.8% year on year to 486 billion yuan (about $67.2 billion), ranking the third highest nationwide. Hubei's industrial transformation is also accelerating with the rapid emergence of a modern industrial cluster, which features five pillar industries each worth a trillion yuan, 10 competitive industries each worth 500 billion yuan, and another 20 distinctive industries each worth 100 billion yuan. The output of Hubei's industries related to optical communication, chips, new display screens, smart terminals, and the internet is expected to reach the one-trillion-yuan threshold this year. The local auto manufacturing and service industry, as well as the big health industry, are also expected to see similar development. The development of our innovative entities are also thriving, with the number of high-tech enterprises reaching 25,000 and small and medium-sized sci-tech enterprises (SMEs) reaching 35,000, both doubling in just two years.

Third, Hubei has accelerated its efforts to build itself into a "thoroughfare to the whole country" in the new era and reshaped its advantage as a pivot connecting the Land Silk Road, Maritime Silk Road and Air Silk Road. Remaining committed to laying the foundation and shoring up the weak links for long-term planning, we have enhanced major infrastructure construction, expediting Hubei's transition from a "thoroughfare to nine provinces" to a "thoroughfare to the whole country." In Hubei, the high-speed rail network has formed, with the super high-speed rail network spanning 12 directions taking shape more quickly, enabling access to 80% of the nation's major cities within four hours. With the golden waterway of the Yangtze River leading to other rivers and seas, vessels carrying tens of thousands of tons can navigate directly to Wuhan. Here, Wuhan Port boasts the highest container throughput in the river's upper and middle reaches. Additionally, the Air Silk Road provides a global reach. For example, Ezhou Huahu Airport, Asia's largest specialized cargo airport, has been completed and is now operational. It currently serves 64 international and domestic cargo routes, and its cargo throughput is projected to exceed 1.2 million tons this year, ranking fourth nationwide. 

Fourth, Hubei is firmly committed to promoting green and low-carbon development, crafting a picturesque landscape of harmonious coexistence between humanity and nature. By thoroughly implementing Xi Jinping Thought on Ecological Civilization, we have made solid progress in advancing comprehensive basin management, ensuring that the Yangtze River flows clearly eastward and that the lucid waters are effectively channeled northward from the Danjiangkou Reservoir. The quality of the environment has steadily improved. More than 90% of the state-monitored surface water sections have maintained excellent or good quality. Additionally, the water quality of the Yangtze River's main channel and the Danjiangkou Reservoir has consistently exceeded Class II standards. The "smiling angel," the Yangtze finless porpoise, once on the brink of extinction and a public concern, has seen its population rebound to 1,249 after years of ecological conservation efforts. The serene sight of "lucid waters, lush shores, and playful finless porpoises" has become a common sight. The green transition has seen improvements in both quality and effectiveness, expediting the development of green industries and clean energy systems. With green electricity accounting for 65% of installed capacity, Hubei has achieved the seventh-highest economic output nationwide while ranking 22nd in energy consumption per unit of GDP.

Fifth, Hubei is committed to elevating the quality of life for its people with heartfelt sincerity, making warm and substantial contributions to improving well-being. Through grassroots initiatives, we have attentively observed the needs of our residents and addressed their concerns to warm their hearts, aiming to ensure that more people benefit from developmental outcomes. Tangible benefits have been delivered as we thoroughly implement a variety of projects in education, healthcare, and eldercare every year. Last year, we completed 46 projects across 10 categories related to people's well-being. This year, we will continue these efforts with 52 projects in 10 categories, ensuring residents enjoy more tangible benefits. Residents' income has increased steadily, seeing an average annual growth rate of 6.8% over the past three years, surpassing the economic growth rate. Each year, more than 900,000 new urban jobs are created, attracting over 400,000 college graduates to obtain employment or start businesses. Public services have been constantly optimized. For instance, 66% of primary and secondary schools have been incorporated into county-level collaborative development alliances for basic education, and 72% of counties now have third-grade hospitals, the highest level in China's three-tier hospital grading system. Additionally, 12-minute emergency treatment circles in urban areas and 15-minute medical service circles in rural areas have essentially been established.

On the new journey of the new era, we will firmly implement the guiding principles of General Secretary Xi Jinping's important instructions on the work in Hubei. We will thoroughly explore practical ways to create a modernized Hubei with Chinese characteristics by implementing five relevant initiatives, including the one that relies on comprehensive basin management to coordinate and promote high-standard conservation and high-quality development, with the aim to make new and greater contributions to building a great country and advancing national rejuvenation.

That concludes my introduction. My colleagues and I are ready to answer your questions. Thank you.

Xie Yingjun:

Thank you, Mr. Wang. Now, the floor is open to questions. Please identify the media outlet you represent before asking your question.

People's Daily:

General Secretary Xi Jinping has emphasized the need to effectively propel the rise of the central region from a higher starting point. To this end, how can Hubei better fulfill its role as a strategic pivot in the new era?

Wang Zhonglin:

You've raised an important question, and I'll answer it. It's widely recognized that promoting the rise of the central region is a major strategic deployment made by the CPC Central Committee eying the big picture of coordinated development between regions. General Secretary Xi Jinping has high expectations for Hubei. During his visit to Hubei in July 2013, he called for the province to accelerate its development into a crucial strategic pivot in facilitating the rise of the central region. Over the years, Hubei has bravely shouldered its responsibilities and diligently pursued practical endeavors, achieving notable progress in its role as a strategic pivot. We are confident and determined to take on this vital mission as a strategic pivot and secure greater success in advancing the rise of the central region in this new era.

Last month, the CPC Hubei Provincial Committee convened a plenary session and made a systematic deployment on promoting Chinese-style modernization in Hubei and accelerating the building of an important strategic fulcrum for the rise of China's central region. The session clarified the "five defined functions" and the overall plan and key tasks. The five defined functions of the province are: quickly developing Hubei into an important hub for domestic economic flows and a vital link driving both the domestic and global economies; establishing it as a national base for scientific and technological innovation and manufacturing; creating a homeland security service base; serving as a national strategic region for water security; and designating it as a national high-quality agricultural production area. These are not only Hubei's responsibilities as a strategic fulcrum but also the focus of our work. We will double our efforts in the following five aspects. First, we will enhance the province's overall capacity and continue strengthening its supportive role as a strategic pivot. This means consolidating the momentum of sound and steady growth, promoting effective improvement in quality and reasonable quantitative economic growth, and striving to increase the provincial GDP by 2 trillion yuan in five years. Second, we will advance innovation-driven development and constantly enhance the province's core competitiveness as a strategic pillar. We will promote the integration of scientific and technological innovation with industrial innovation, focusing on applicability. Our goal is to accelerate the development of Wuhan into a nationally influential scientific and technological innovation center. We aim to achieve breakthroughs in five major advantageous industries, including optoelectronic information. Additionally, we will strengthen and upgrade modern industrial clusters, marked by five one-trillion-yuan pillar industries, ten 500-billion-yuan competitive industries, and twenty 100-billion-yuan distinctive industries. This initiative will help us foster a pacesetter for developing new quality productive forces in the country. Third, we will continue to open up to the outside world and bring together more factors to enhance the province's role as a strategic fulcrum. We will make good use of channels for opening-up such as Huahu International Airport, the shipping hub of Wuhan for the middle reaches of the Yangtze River, and the China-Europe Railway Express. We will also further develop the China (Hubei) Pilot Free Trade Zone and other platforms for opening-up, construct international industrial parks with countries including Germany, France, and Japan, actively foster a new system for a high-standard open economy, and build an inland hub for opening-up with stronger competitiveness. Fourth, we will promote green transformation across the board and constantly enhance the ecological carrying capacity of the province. We will integrate the development of industrialization, IT application, urbanization, and agricultural modernization based on comprehensive river basin governance. We will implement 10 major initiatives to improve the quality and efficiency of the Yangtze River conservation, establish 10 major green development systems, including the circular economy framework, build Hubei into a beautiful province, and accelerate its rise that is rooted in green transformation. Fifth, we will advance collaborative integration and make the province a more powerful engine driving the development of other areas. We will promote the development of the three metropolitan areas of Wuhan, Xiangyang, and Yichang-Jingzhou-Jingmen, deepen cooperation and linkage with other central China provinces, strengthen synergy with the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area, and bolster the development of China's strategic hinterland to better integrate into and support the new development paradigm and make a greater contribution to the rise of the central region.

That's all from me. Thank you.

CCTV: 

As we all know, Hubei province's goal to become an important strategic fulcrum supporting the rise of China's central region cannot be achieved without talent. Hubei boasts a wealth of intellectual resources and has competitive scientific and educational talent advantages. Could you please introduce some explorations and practices in this regard? Thank you.

Wang Zhonglin:

Thank you for your question. I will invite Mr. Shao Xinyu to answer your question.

Shao Xinyu:

As one of China's three major intelligence-intensive areas, Hubei is home to 81 academicians, 132 universities, 2 million college students, 3,600 scientific research institutions, and 350,000 R&D personnel. These are the most valuable assets for the province and the main source of potential for its high-quality development. For the first time, the report to the 20th CPC National Congress in 2022 made an overall arrangement to integrate the development of education, science and technology, and talent. Hubei has actively practiced and explored this integration.

First, we pooled the strength of educational and sci-tech professionals based on innovation platforms. The national-level and provincial-level innovation platforms have paved the way for uniting prestigious universities, advantageous disciplines, outstanding talents, and excellent enterprises to expand the talent pool. For example, Huazhong Agricultural University spearheaded the establishment of Hubei Hongshan Laboratory, gathering eight academicians, 147 state-level, high-caliber professionals, and 151 post-doctorates to combine academic disciplines with industries and technology with applications while attaching researchers' benefits to the commercialization of scientific and research findings. In the past two years since its establishment, it has achieved 12 major domestically pioneered and world-class scientific research accomplishments, including identifying key genes for increasing corn and rice production. It has been selected twice as one of China's top 10 achievements in scientific and technological progress.

Second, major projects boost the efficient and integrative development of education, science and technology, and human resources. We have explored a coordination mechanism where enterprises raise questions, the government provides support, and solutions are jointly found through market-oriented assessments. This approach guides and supports universities and research institutes in conducting scientific and technological research, building disciplines, and developing talent, focusing on the critical needs of developing science, technology, and industries. For instance, Dongfeng Motor Corporation led efforts to establish an innovation consortium for automotive-grade chips, organizing over 2,000 researchers from various universities and institutions to join forces in overcoming the bottleneck of auto chips. They developed four types of automotive-grade chips. The Wuhan University of Technology has set up a special "Dongfeng Class" and provided targeted training programs.

Third, we cultivate talents by category to build a talent echelon in education, science, and technology. We follow the laws of talent cultivation, taking phased and classified steps to allocate educational resources. We are nurturing high-performing engineers, top-tier innovators, and strategic scientists in alignment with diverse talent needs for scientific and technological research. We have established schools for outstanding engineers to adapt to and lead future developments in engineering technologies and for scientific and technological innovation. We have carried out campaigns to increase the number of postdoctoral researchers and to cultivate and attract more of the brightest minds in the province. We support them in undertaking vertical (central-local) and horizontal (cross-regional) research programs, promoting the interconnected and coordinated development of education, science and technology, and human resources. For example, we are implementing projects to make breakthroughs in humanoid robot development and have established robotics engineering majors in many colleges and universities to nurture interdisciplinary talent through targeted training programs. Next, we will further explore and contribute to major breakthroughs and the development of a comprehensive education system, science and technology, and human resources in Hubei.

Hubei Media Group:

Mr. Wang just introduced that over the years, Hubei has annually promoted 10 types of projects to ensure success in delivering prosperity and benefits to the people. Personally, I am more concerned about public health issues. My question is: What progress has Hubei made in recent years in building "Healthy Hubei?" Thanks.

Wang Zhonglin:

Thank you for your concern. I will invite Mr. Wei to answer this question.

Wei Shengbin:

In recent years, Hubei has implemented important measures to benefit the people, resolve their difficulties, and win their approval. Several pressing difficulties and problems that matter most to the public have been resolved. We have made every effort to address the critical task of fortifying the public health protection network set by General Secretary Xi Jinping for Hubei, to protect people's lives and health. Remarkable progress has been made in promoting the reform of the disease prevention and control system and strengthening the public health system. Hubei ranked second in the evaluation of the "Healthy China" initiative.

First, we uphold comprehensive medical values and have made new progress in strengthening the public health system. We have worked hard to resolve the problems of difficult, expensive, and complex access to medical services. A health service system covering urban and rural areas is now in place, enhancing collaboration between hospitals and institutions for disease prevention and control. We have doubled our efforts to address weaknesses in the field of public health and launched 1,819 programs with a total investment of over 200 billion yuan. We have focused on expanding medical resources and building high-level national and regional medical centers. The number of tertiary hospitals in Hubei has reached 208, ranking fifth in the country. We have promoted balanced development and have established a medical system at five levels: province, city, county, township, and village. Counties with a population of over 1 million and China's top 100 counties located in Hubei each have at least one Grade-A tertiary hospital, and every village has a clinic. We have trained and deployed 13,000 university-educated doctors to villages, allowing residents to access medical services near their homes.

We adhere to comprehensive health values, and the health of our people has improved. With a focus on five areas — prevention, screening, health management, treatment, and scientific research — we have launched the "323" initiative to tackle significant public health issues. This initiative targets three types of serious diseases, such as cancers; two chronic diseases, like hypertension; and three major public health problems, such as congenital disabilities. Through this initiative, we have provided comprehensive health care across the full life cycle, increasing the public health level by 13.9 percentage points compared to pre-pandemic figures. The rate of premature deaths from major chronic diseases has dropped substantially. More than half of all township-level health centers in Hubei are now equipped to provide emergency clot-busting treatments for cardiovascular and cerebrovascular diseases. In the last three years, they have saved the lives of more than 3,900 patients.

Third, by adhering to a comprehensive population approach, we have made new progress in high-quality population development. We focus on policies that promote long-term balanced population development, such as improving incentives for couples having children, reducing the costs of raising and educating children, and upgrading childcare services. Medical expenses related to childbirth are fully covered by funds under unified management in the medical insurance system. More than 90% of county-level maternal and child health centers have reached secondary-level standards in China's three-tier grading system. In the past three years, we have added more than 149,000 childcare spots, reaching 3.41 per 1,000 people, placing us at the forefront nationwide.

We are committed to cultivating a broad industrial perspective and achieving significant advancements in the development of the healthcare sector. As Mr. Wang mentioned earlier, Hubei prioritizes the healthcare industry as one of its trillion-yuan pillar industries. We are continuously advancing the integration of healthcare and elderly care, as well as medical and elderly care services. Moreover, we are vigorously promoting the growth of high-end medical equipment, biopharmaceuticals, and modern health services. Last year, the industry reached a scale of 881 billion yuan, and this year, it is expected to exceed 1 trillion yuan, becoming a solid support for overcoming diseases and protecting health.

That's all from me. Thank you!

Jimu News:

We have noticed that Hubei's number of business entities has increased rapidly, with over 1.6 million new entities established last year, hitting a record high. Could you please describe how Hubei is optimizing its business environment? What are the plans for the next steps? Thank you.

Wang Zhonglin:

Thank you for your high attention to the improvement of the business environment in Hubei. Mr. Li will answer your questions.

Li Donghui:

Hubei is committed to delivering business services that are closely aligned with market needs and public services that are easily accessible to the community. The province is actively working to create a premier business environment that appeals to both local businesses and those from other regions. We have made notable advancements in the "Business Environment Evaluation by Ten Thousand Private Enterprises" national survey, continuously moving up for three consecutive years and ranking among the top nationwide in 2023. Our main practices are as follows:

First, we have placed emphasis on process reengineering to stimulate the vitality of business entities. Centered on the principle of "promoting one-stop government services, " we have widely promoted 52 frequently mentioned items, such as "I want to open a supermarket," across the province, ranking second nationwide in terms of quantity. This has enabled us to achieve a streamlined process of "one-form application, one-window acceptance, and one-time completion." Additionally, we have fully implemented initiatives such as "integrating multiple certificates into one" and "one license per industry," significantly reducing the bureaucratic burden. For instance, procedures for establishing businesses like hotels and internet cafes have been simplified from nine permits to just one. Furthermore, Hubei has been acknowledged for its outstanding performance in the State Council's evaluation of integrated government service capabilities, consistently securing a very high position in the rankings for two consecutive years.

Second, we have focused on restructuring mechanisms to bolster the momentum for sustainable economic growth. We have innovatively implemented reforms in the comprehensive performance evaluation of investment projects, establishing an integrated management service "hub" covering the entire lifecycle of projects, from preliminary planning to construction, settlement, and operation. This initiative has significantly reduced the approval time for engineering construction projects from an average of 120 days to 67 days. For example, the Wuhan Eswin Semiconductor project, with an investment of 15 billion yuan, commenced construction just 42 days after the contract was signed. Consequently, the province has witnessed continuous enhancements in investment efficiency, benefits, and effectiveness. In the first quarter of this year, investment surged by 5.8% year on year, 1.3 percentage points higher than the national average. Notably, private investment saw a remarkable increase of 3.6%, outpacing the national average growth rate by 3.1 percentage points.

Third, we have addressed cost control to stabilize enterprises' development expectations. We have closely monitored key expenses such as financing, energy, land, logistics, and intermediary services, directly addressing the concerns impacting enterprises. We took the lead nationwide in formulating an operational process diagram focused on cost control to optimize the business environment. This approach makes the business environment quantifiable, evaluable, and observable. For example, we pioneered the construction of a supply chain logistics public information platform integrating the "five networks" of railways, waterways, roadways, airways, and storage, achieving multimodal transportation with a unified ordering system. As a result, the proportion of total social logistics costs to GDP has decreased to 13.04%, 1.36 percentage points lower than the national average. Last year, the province collectively reduced various costs for enterprises by 130 billion yuan, with plans to further reduce costs by over 100 billion yuan this year.

For the next step, we will intensify efforts in five key areas: strengthening policy foundations, building trust in Hubei, enhancing legal frameworks, and implementing other major actions. This will accelerate the development of an integrated low-cost environment and elevate Hubei's business environment to new heights.

That's all from me. Thank you!

Associated Press of Pakistan:

Thank you. I represent the Associated Press of Pakistan. I have noticed that a national system for the registration and settlement of carbon credits has been established in Hubei province. Hubei will also host the National Carbon Market Conference this year. So, I would like to ask, what efforts have been made by Hubei province to promote green and low-carbon transformation and the high-quality development of the Yangtze River Economic Belt? Thank you.

Wang Zhonglin:

Thank you very much for your interest in Hubei. I will take this question. As an important province in the Yangtze Economic Belt, Hubei plays a significant role in accelerating green and low-carbon development. In recent years, Hubei has focused on reshaping its development with a green development philosophy and improving its ecological environment through low-carbon transformation. With a 3% annual average energy consumption growth, Hubei has supported an average economic growth of 6%. Green and low-carbon development has become a hallmark of Hubei's high-quality development. Here is the work we have done:

First, we have accelerated the construction of a green industrial system. We have set priorities in developing green industries, implementing 10 major green transformation projects such as energy-saving and carbon-reduction transformations in key industries, and creating 10 circular economy industrial chains, such as recovering mineral resources from city waste, to synchronize green and value-added economic development. For example, with the rapid development of NEVs, the use of lithium batteries has increased significantly, posing considerable challenges to ecological and environmental protection. We have planned and acted early and made advance arrangements for the recycling of used lithium batteries. For instance, the Bangpu Integrated Battery Material Industrial Park, with an investment of 60 billion yuan, will "turn waste into treasure" and "squeeze out every bit of value." Once completed, its annual output value could exceed 100 billion yuan.

Second, we have accelerated the construction of a clean energy system. We are focusing on reshaping the strategic resource structure and making great efforts to develop clean energy. Our installed power capacity has exceeded 100 million kilowatts, with the proportion of clean energy installed capacity increasing to 65%. We have also planned to implement 38 pumped-storage hydropower projects, with a total installed capacity of 39 million kilowatts and an annual power generation equivalent to 1.4 times Hubei's electricity consumption last year. Our clean energy installed capacity is growing rapidly, with an additional 12.3 million kilowatts added last year alone, and the annual power generation is equivalent to 45% of the province's electricity consumption.

Third, we have accelerated the construction of a green institutional system. Focusing on the dual carbon goals, we established and effectively utilized the China Carbon Emission Rights Registration and Trading Center, improved mechanisms for ecological value realization and ecological conservation compensation, and led green and low-carbon transformation through institutional innovation. Currently, the center manages 2,533 companies across the country, making it the largest in the world, and it has become the underlying database of the national carbon market. It is the first to link the three major markets of electricity, carbon, and finance nationwide. This has led to the creation of a comprehensive whole industry chain for the carbon market, including carbon trading and carbon assets. Hubei's carbon market transaction volume accounts for 42.7% of China's total. We will leverage the center's role in accelerating the creation of a carbon market and carbon finance center with national influence, strengthening Hubei's green rise.

In the second half of this year, Hubei will co-host the China Carbon Market Conference with the Ministry of Ecology and Environment and Shanghai. We warmly invite all of you to join us in Hubei to collaboratively plan and promote the construction and development of the carbon market.

National Business Daily:

In recent years, Hubei has continued to make efforts in advanced science and technology, and made especially remarkable innovative achievements in high-end chips and biotechnology. Can you give a brief overview of Hubei's main practices in sci-tech innovation? Thank you.

Wang Zhonglin:

Thank you for your great interest in Hubei's science and technology innovation work. I would like to invite Mr. Shao Xinyu to answer this question.

Shao Xinyu:

As Mr. Wang Zhonglin mentioned, Hubei is a province known for its strong science and education sector, with significant sci-tech strength and fruitful innovation achievements. Over the past five years, Hubei has consistently ranked among the top five provinces in the number of national science and technology awards received. The local transformation rate of sci-tech achievements has also increased significantly, rising from 37% to 65%. This success is mainly due to our persistent efforts in technological innovation and the continuous improvement of our innovation capacities and strength. We have primarily undertaken the following work:

First, we have established a framework to build a matrix of sci-tech capabilities. Guided by the initiative to build Wuhan into a nationally influential sci-tech innovation center, we created a high-level matrix of sci-tech capabilities encompassing fundamental research, technological R&D, and industrial applications, forming the core pillars of sci-tech innovation. High-level innovation platforms, represented by a national laboratory, 35 key national laboratories, and eight large scientific facilities, effectively bring together technologies, talent, capital, and industrial needs, serving as important sources of innovation. For example, the pulsed high magnetic field large scientific facility has attracted nearly 100 excellent international and domestic scientists, technicians, and engineers, achieving several technological indicators at the world-class level. We have also attracted more than 130 top research institutions from around the world, such as Peking University, Tsinghua University, Harvard, and Cambridge, to undertake 1,894 scientific research projects in fields such as the material and life sciences. One notable outcome is the 20-megawatt offshore wind turbine, the world's largest in terms of capacity, which can achieve overall magnetization and significantly improve performance.

Second, we have concentrated on tackling issues to accelerate breakthroughs in critical technologies. Focusing on advantageous areas like optoelectronic information, high-end equipment, and the life sciences, we strive to achieve breakthroughs in fundamental research, key technologies, and major products. This effort has led to the development of a range of internationally leading technologies, such as electromagnetic energy, brain-like intelligence, and satellite navigation positioning, resulting in the production of high-end products like the world's first high-resolution radar satellite, the world's leading three-dimensional flash memory chip in terms of storage density, and the world's first fully digital PET-CT for clinical use. For example, Wuhan University led a series of research projects on integrating communication, navigation, and remote sensing for the BeiDou Navigation Satellite System. The integrated BeiDou space-ground system has significantly improved the positioning accuracy of over 30,000 satellite navigation reference stations nationwide to the centimeter level.

Third, we have introduced innovative mechanisms to promote the transformation of sci-tech achievements. We have taken the lead nationally in establishing a technology innovation supply chain platform focusing on practical applications. We have improved the transformation system that integrates government, industry, academia, research, finance, service, and transformation, akin to the "Big Dipper" constellation. Each year, we establish over 20 concept verification centers and pilot platforms, facilitating the transformation of over 500 major sci-tech achievements within the province. The device used for myocardial rotational excision surgery, mentioned earlier by Mr. Wang Zhonglin, is an excellent example. The device was developed based on clinical demands and conceptual prototypes from Tongji Hospital of Huazhong University of Science and Technology. By integrating cross-disciplinary medical and engineering collaboration and leveraging sci-tech financial resources, we rapidly transformed the prototype into a surgical instrument. This innovation successfully addresses the global challenge of performing "non-invasive, continuous beating heart" hypertrophic cardiomyopathy resection.

Moving forward, we will continue to leverage Hubei's advantages in sci-tech innovation, strengthen original innovation, promote the practical application of these achievements, and strive to build the core engine of new quality productive forces.

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

Zhinews of Shenzhen Satellite TV:

We have noticed that Hubei province has proposed establishing itself as an important node in the domestic economy and a crucial hub for the domestic economy and international engagement. What are the main measures being taken in this regard? Thank you.

Li Donghui:

Hubei province is a central transportation hub connecting the country's railway, sea, road, and air routes. In recent years, we have seized the strategic opportunity presented by the new pattern of development, coordinating domestic and international markets and resources more effectively. We have accelerated the transformation of our geographical advantages into developmental strengths, striving to build a transportation hub for the new era.

First, we are constructing three strategic hubs along the Silk Road, aiming to facilitate global connections. The Yangtze River waterway connects to the Maritime Silk Road, with large-tonnage vessels reaching Wuhan directly. We have opened 35 international and domestic container shipping routes, connecting Europe, East Asia, Southeast Asia, and many other countries and regions. The China-Europe Railway Express (Wuhan) connects to the Land Silk Road, allowing goods from Japan and South Korea to be transported directly to Wuhan's Yangluo Port and then transferred to the China-Europe Railway Express, saving 55% in time and reducing costs by 15%. The Ezhou Huahu Airport is the hub for the Air Silk Road, with a peak of 120 daily freight flights. This is accelerating the formation of an air cargo transportation network that "transports and distributes nationwide and globally."

Second, we are building a modern logistics system for the supply chain, in a bid to accelerate integration into industrial chains both domestically and abroad. We have developed seven supply chain platforms, focusing on key areas such as bulk commodities, automobiles, and textiles. These efforts aim to promote the integrated development of upstream and downstream industrial chains, that of production, supply and marketing, as well as integrated development at home and abroad. Efforts have been made to advance the multimodal transportation system that involves railway, waterway, road, and air routes. We have launched 10 national demonstration projects for multimodal transportation. Last year, rail-water transportation in Hubei accounted for one-third of the Yangtze River trunk line. A digital platform for international trade has been built in Hubei to help enterprises collectively expand into overseas markets. In 2023, our exports of the "new three" products — new energy vehicles (NEVs), lithium-ion batteries, and photovoltaic products — grew by 91%, with NEV exports ranking fifth nationwide.

Third, we are developing a new system of open economy and continue to expand win-win economic and trade cooperation. We remain committed to building the China (Hubei) Pilot Free Trade Zone with high standards. We have taken the lead in implementing reforms such as "export before customs clearance," with a total of 28 institutional innovations promoted across the country. We have deeply integrated into the joint building of the Belt and Road Initiative. For example, Hubei's bridge construction companies have designed and built nearly 200 bridges in more than 30 countries, and more than half of the world's long-span bridges were made by Hubei's builders. Platforms for high-quality international economic and trade cooperation have been established, including the Fortune Global 500 Dialogue with Hubei, the Conference on Overseas Chinese Pioneering and Developing in China, and the Wuhan (Hankoubei) Commodities Fair. The number of Fortune Global 500 companies investing in Hubei has reached 325. With such efforts, Hubei is moving quickly to become a new pacesetter for opening-up in China's interior. 

That is all from me for now. Thank you.

Xinhua News Agency: 

We know that Hubei is a major manufacturing province, with a solid foundation in competitive industries like optoelectronic information, new energy and intelligent connected vehicles. What has Hubei done to build a modern industrial system?

Wang Zhonglin:

Thank you for your question. I'll take this one. We all recognize that industry is the cornerstone of development. Over the years, Hubei has focused on strengthening the real economy, accelerating the creation of a modern industrial system led by strategic emerging industries, dominated by advanced manufacturing, and driven by modern service industries. Hubei's industrial progress can be outlined as follows: fast transformation, strong momentum, new tracks, and enhanced quality and efficiency. The value added by high-tech manufacturing surged by an average of 18.8% annually over the past three years. Industries such as data storage chips, commercial aerospace, and cyber security are leading the nation in terms of overall strength. General Secretary Xi Jinping has acknowledged Hubei's unique position in the optoelectronic information industry. Our efforts are focused on the following aspects: 

First, we have supported the further development of modern industrial clusters, cultivating new advantages for industrial growth. We remain committed to developing distinctive and competitive industries, with a focus on building major industrial clusters in Hubei, which feature five pillar industries each worth a trillion yuan, 10 competitive industries each worth 500 billion yuan, and 20 distinctive industries each worth 100 billion yuan. Hubei is now home to three industries each with an annual output of nearly 1 trillion yuan, 18 industries exceeding 100 billion yuan each, four national strategic emerging industrial clusters, and 16 national innovative industrial clusters, all ranking among the country's highest. We have achieved breakthroughs in five competitive industries, such as optoelectronic information and high-end equipment manufacturing, with revenues accounting for over 60% of the province's industrial enterprises above the designated size. Hubei has become the largest R&D and production base for optoelectronic chips in China, the country's largest manufacturing base for small and medium-sized display panels, and important national hubs for the commercial space industry and for NEVs and intelligent connected vehicles.

Second, we have followed a "three-pronged approach" to advance the development of traditional industries, emerging industries and future industries, and enhanced new driving forces for industrial transformation and upgrading. We have made coordinated efforts to upgrade traditional industries, grow emerging industries, and cultivate future industries, aiming to improve their quality and effectiveness. There is a significant transformation in the traditional sector, with the steel industry moving toward high-end production, the chemical industry toward precision, and the automotive industry toward new energy and intelligent connectivity. Regarding automobile manufacturing, Hubei is one of the few provinces to have a comprehensive automobile manufacturing system. Over the years, we have accelerated the transformation of the automobile industry, launching more than 10 NEV models each year. Popular models include Dongfeng Mengshi, Geely's Lotus, Voyah, Xiaopeng and Ultium. In the first quarter of this year, the production of NEVs grew by 109%, 81 percentage points higher than the national average. We have accelerated the development of emerging industries. Emerging and distinctive industries such as computing power, big data and Beidou navigation have grown rapidly. The value added by the high-tech sector has surpassed 1 trillion yuan, contributing more than 40% to industrial growth. The value added by the digital economy has accounted for 47% of GDP. As for future industry planning, we have launched eight major initiatives regarding breakthroughs in humanoid robots and the innovative development of 6G technology, among others, to seize new development opportunities and elevate Hubei's industrial development to new heights.

Third, we have taken solid steps to promote closer collaboration between industries, universities, and research institutes, creating a new collaboration ecosystem between supply chains and industrial clusters. We have established a mechanism where provincial-level officials assume leadership, leading enterprises take the initiative, and universities and research institutions provide support, generating a multiplying effect of "1+1+1>3." In the past, China relied on imports for the world's highest-end three-dimensional five-axis laser processing machine tools. To address this, we supported three companies, including HGTECH, to take the lead, organized over 100 enterprises and scientific research institutions to jointly tackle key problems, and ultimately broke the foreign monopoly. Currently, 70% of the country's three-dimensional five-axis laser processing machine tools are made in Hubei. The efficient collaboration of the visible hand of the government, the invisible hand of the market, and the empowering hand of innovation has effectively promoted technological breakthroughs and industrial upgrading. Next, we will focus on the strategic task of new industrialization, making every effort to build an innovation ecosystem that links government, enterprises, and scientific research institutions and connects upstream and downstream sectors, injecting strong momentum into high-quality industrial development.

That's all for my introduction. Thank you.

Thecover.cn:

Hubei has the longest stretch of the Yangtze River and is the core water source area for the middle route of the South-to-North Water Diversion Project. Could you please brief us on Hubei's efforts to strengthen water security and water environment governance? Thank you.

Shao Xinyu:

As we know, Hubei is where General Secretary Xi Jinping set the guidelines for the development of the Yangtze Economic Belt. In recent years, we have earnestly implemented the important guideline of promoting well-coordinated environmental protection while preventing overdevelopment, leading to overall improvements in ecological conservation. Our efforts have mainly focused on the following aspects:

First, we are committed to keeping the Yangtze River and reservoir waters clean. We have prioritized restoring the ecological environment of the Yangtze River, launching 10 landmark campaigns to protect the Yangtze River and 10 programs to improve quality and effectiveness for six consecutive years. The water quality of the Hubei section of the Yangtze River's main channel has remained stable at Class II. The Danjiangkou Reservoir, known as "the well of the capital," provides over 70% of the residential water for urban Beijing. We coordinated the implementation of six major water environment governance programs in the reservoir, and its water quality has remained at Class II or above for 10 consecutive years, directly benefiting more than 100 million people along the reservoir.

Second, we are vigorously strengthening ecosystem protection and restoration. We have continued to combat pollution to achieve fundamental improvements in the ecological environment. We have made a tough decision to resolve the issue of the "chemical plants encircling the river." Through the measures of shutdowns, replacements, relocations, and transformations, we have eliminated chemical enterprises within a 1-kilometer range along the Yangtze River, transforming industrial shorelines into ecological shorelines. Hubei has led the country in implementing a five-level river and lake chief system and has strictly enforced the 10-year fishing ban on the Yangtze River. Fish resources and biodiversity have been well restored. Rare fish species such as Ochetobius elongatus and Coilia nasus, which had disappeared for many years, have reappeared in the Yangtze River. The population of waterbirds has increased by 4.9 times in the past five years. The beautiful scenes of clear waters with fish leaping and birds flying are now often seen.

Third, we are effectively promoting the mutual reinforcement of high-standard protection and high-quality development. We are committed to cultivating green momentum through green transformation and supporting high-quality development with high-level protection. For example, we have vigorously promoted the electrification, gasification, and hydrogenation of the Yangtze River, advancing the green development of Yangtze River shipping through new energy technologies. The independently developed Yangtze River Three Gorges 1 is the world's largest electric cruise ship in terms of battery capacity, achieving zero emissions, zero noise, and zero pollution. The market share of electric ship core power systems made in Hubei has reached 62%, ranking first in the country. We will continue to make sustained efforts to make Hubei's waters clearer, skies bluer, and lands cleaner, contributing to more sustainable development. Thank you.

Xie Yingjun:

The last question, please. 

21st Century Business Herald:

Hubei is a popular tourist destination for many people. We noticed that during the recent May Day holiday, many scenic spots in Hubei were crowded and extremely popular. Could you please brief us on some of Hubei's attractions? Thank you.

Wang Zhonglin:

Thank you for your attention to Hubei. Mr. Wei will answer this question.

Wei Shengbin:

As you mentioned, Hubei is a popular tourist destination for both domestic and international travelers. As a province with abundant tourism resources, Hubei boasts beauty of mountains and rivers as well as excellent cultural heritage. It is home to four world cultural and natural heritage sites, ranking second nationwide. With 15 national 5A-level scenic spots, ranking sixth in the country, Hubei is a popular tourist destination sought after by visitors from around the world. Here, I would like to introduce Hubei in the following five aspects.

Hubei is like a beautiful painting with enchanting rivers and lakes as well as majestic and diverse mountains. The Yangtze River, the Hanjiang River, and the Qingjiang River are like three jade belts embellishing the land of Hubei, and there are 755 lakes and 4,231 rivers scattered across the region. Here, with the construction of the Three Gorges Dam, the once turbulent waters have now tranquillized, giving rise to a broad expanse of lake. Wudang Mountain is known for its Taoism culture, and Shennongjia stands as the "Roof of Central China." All these are world-famous scenic spots. The province showcases its picturesque landscapes throughout the four seasons, with cherry blossoms in the spring, lotus flowers in the summer, osmanthus blossoms in the autumn and plum blossoms in the winter, offering scenic beauty year-round.

Hubei is like a profound book as it is the important birthplace of the Yangtze River civilization, the significant origin of the ancient Chu culture and the vital carrier of the Three Kingdoms culture. Historical figures such as Emperor Yan, the poet Qu Yuan, the tea sage Lu Yu and the medicinal expert Li Shizhen still shine brightly. Stories like the musician Boya playing the zither, Zhaojun departing for a frontier and Yue Fei stationing troops have been passed down through the ages. Classic works such as "Yellow Crane Tower" by Cui Hao, "Ode to the Red Cliff" by Su Dongpo, and "Prelude to Water Melody: Swimming" by Chairman Mao have left a lasting legacy. The land of Hubei is like a profound book that is always captivating and ever fresh.

Hubei is like an inspiring poem. It is where the revolution of modern China began, with the Wuchang Uprising marking the first shot of the 1911 Revolution. The Hubei-Henan-Anhui revolutionary base area created the miracle of "28 years with the Red Flag never falling." Hubei is also home to 235 founding generals of the People's Liberation Army. The first bridge across the Yangtze River was built here, serving as a major passage to connect its north and south banks. The "made-in-Wuhan" equipment has played a significant role in supporting the country's industrial backbone. The heroic battles during the 1998 flood and the defense against the COVID-19 pandemic in Wuhan have safeguarded the land. Generations of Hubei residents have fought fearlessly, creating a grand and magnificent epic that fills the hearts of others with passion and admiration.

Hubei is like an abundant garden, renowned for its delectable cuisine that spreads its fragrance far and wide. Wuchang fish, hot dry noodles and crayfish have all gained popularity both domestically and internationally. Famous teas here offer a long-lasting sweetness, with the historical significance of being transported to other areas through the ancient Tea Road. Enshi Yulu, Lichuan Red and other exquisite Chu-style teas have gained fame worldwide. There are also a wide range of high-quality products, including traditional Han-style clothing, exquisite jewelry and authentic medicinal herbs. Automobiles, mobile phones and smart home appliances sell well globally. The land of Hubei resembles a bountiful home, where people harvest happiness and achieve their dreams.

Hubei is like a well-connected bridge. Here, a high-speed rail network stretches in 12 directions, connecting east and west as well as north and south. The 1,061-kilometer-long high-grade waterway of the Yangtze River is connected to the eastern, central and western routes of the New International Land-Sea Trade Corridor. Tianhe Airport and Huahu Airport serve as dual hubs for passengers and cargo, providing an air gateway to the world. An open Hubei, well connected with other regions of the nation, is reaching out to the world.

On this occasion, we cordially invite friends from all over the world to visit Hubei, to admire the magnificent scenery of the Yellow Crane Tower, to practice Wudang tai chi, and to appreciate the essence of the ancient Chu culture. Let us together experience the vast and splendid beauty of Hubei, feel the strong pulse of this land and jointly create a bright future for the rise of the central region. Thank you.

Xie Yingjun:

Thank you, Governor Wang and all the speakers. Thank you to all the journalists present. This concludes our press conference. Goodbye.

Translated and edited by Zhu Bochen, Wang Qian, Xu Xiaoxuan, Liu Sitong, Zhang Tingting, Wang Yanfang, Ma Yujia, Qin Qi, Yan Bin, Yuan Fang, Wang Ziteng, Cui Can, Wang Wei, Yang Xi, Li Huiru, Liu Caiyi, 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 Zhengpu, deputy secretary of the Communist Party of China (CPC) Hebei Provincial Committee and governor of Hebei province 

Mr. Zhang Chengzhong, a member of the Standing Committee of the CPC Hebei Provincial Committee and executive vice governor of Hebei province

Ms. Jin Hui, vice governor of Hebei province

Mr. Zhao Dachun, vice governor of Hebei 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:

April 29, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding the 13th press conference in the series "Promoting High-Quality Development." We have invited Mr. Wang Zhengpu, deputy secretary of the Communist Party of China (CPC) Hebei Provincial Committee and governor of Hebei province, to brief you on forging ahead on a journey of high-quality development in the new era, and to take your questions. Also present today are Mr. Zhang Chengzhong, a member of the Standing Committee of the CPC Hebei Provincial Committee and executive vice governor of Hebei province; Ms. Jin Hui, vice governor of Hebei province; and Mr. Zhao Dachun, vice governor of Hebei province.

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

Wang Zhengpu:

Ladies and gentlemen, good morning. It's a great pleasure to meet you all. First of all, on behalf of the CPC Hebei Provincial Committee and Hebei provincial government, I'd like to express my heartfelt gratitude to you for your long-term interest in and support for Hebei's development. 

Since the 18th CPC National Congress, General Secretary Xi Jinping has paid 11 visits to Hebei, where he delivered important speeches and issued vital instructions. Firmly implementing the guiding principles of the instructions, the entire province has focused on the primary task of promoting high-quality development and the strategic task of creating a new development pattern. We have fully and faithfully applied the new development philosophy on all fronts, and accelerated efforts to foster an economically prosperous and beautiful province. The province's GDP increased by 5.5% in 2023 and by 5.6% in the first quarter of this year. Major indicators have shown a steady increase, maintaining a favorable momentum. 

Now, I'll offer a brief overview from five aspects:

First, we have emphasized innovation, striving to blaze new trails in advancing innovation-driven development. Taking scientific and technological innovation as a core factor in developing new quality productive forces, we have reinforced the principal role of enterprises in innovation, and worked to ensure policies such as additional tax deductions for R&D expenses benefit all eligible enterprises in Hebei, igniting a strong sense of innovation among them. We have established specialized teams to serve the "little giant" companies (novel and elite small and medium-sized enterprises that specialize in a niche market, boast cutting-edge technologies and show great potential). The proportion of industrial equipment connected to cloud platforms and the comprehensive computing index in Hebei rank among the top nationwide. Traditional industries such as steel and equipment manufacturing have made improvements in both quality and effectiveness, emerging industries like biomedicine and digital information have continued to grow, and future industries including aerospace information and satellite internet have been deployed rapidly, contributing to the rapid construction of a modern industrial system. Overall, Hebei is not giving up on traditional industries in its pursuit of innovative development. Meanwhile, it is also endeavoring to catch up in emerging and future industries.

Second, we have highlighted coordination, redoubling efforts to shoulder new responsibilities in promoting the coordinated development of the Beijing-Tianjin-Hebei region and building Xiong'an New Area according to high standards and quality requirements. With coordinated development deepening, the three regions have established a regular consultation mechanism, forming a tighter collaborative pattern. We have partnered with Beijing and Tianjin to develop six key industrial chains, including new energy and intelligent connected vehicles, as well as robots. More than 40,000 enterprises have transferred from Beijing and Tianjin, settling in Hebei. Last year, the volume of contracted technology transactions absorbed by Hebei from Beijing and Tianjin more than doubled, and a historic breakthrough was achieved in attracting second- and third-level subsidiaries of centrally administered state-owned enterprises (SOEs). As we all know, this year marks the 10th anniversary of General Secretary Xi Jinping proposing the strategy of the coordinated development of the Beijing-Tianjin-Hebei region. During the past decade, we have fully implemented a package of special support policies introduced by the central government and secured extraordinary achievements, with the Xiong'an New Area experiencing thriving growth. Construction has been expedited for headquarters of the first batch of relocated central SOEs, namely China Satellite Network Group, Sinochem Holdings, China Huaneng Group and Sinomine Resource Group, as well as Xiong'an campuses of the four universities of Beijing Jiaotong University, Beijing University of Science and Technology, Beijing Forestry University and the China University of Geosciences (Beijing). The Xiong'an branches of Beihai Kindergarten, Beijing Shijia Primary School, Beijing No. 4 High School and Beijing-based Xuanwu Hospital under Capital Medical University, all supported by Beijing, have entered into operation. The Xiong'an New Area Zhongguancun (ZGC) Science Park has been inaugurated, and noticeable results have been yielded with the series of visits to Xiong'an by a thousand ZGC enterprises, a hundred research institutes, a hundred renowned universities, and ten thousand university students in the capital. As a result, the popularity of Xiong'an is steadily increasing.

Third, we have pursued green development, endeavoring to achieve new breakthroughs in advancing the green transition in all respects. We have worked to make solid gains in the battle against pollution, and air quality has continued to improve. The water quality of Baiyangdian Lake has remained stable at Level III according to China's five-tier water assessment system, hastening the recovery of its crucial role as the "Kidney of North China." Strong efforts have been made to achieve Grade A environmental performance in key industries, with the number of steel enterprises in Hebei achieving Grade A for environmental performance ranking first nationwide, reaching 37. Integrated development of culture and tourism has been deepened, with total trips by tourists reaching 840 million last year. "So Close, So Beautiful, Spend Your Weekends in Hebei" has become a slogan for the province.

Fourth, we have enhanced opening-up, redoubling efforts to foster new advantages in deepening reform and opening-up. We have been committed to promoting development by prioritizing the improvement of the business environment, and have mobilized and made deployments for the province's "first meeting of the New Year" themed on business environment for two consecutive years. All enterprise- and people's wellbeing-related items subject to approval can now be handled in government service halls, while the 12345 hotline for government services has reached a stable connection rate of over 98%. Additionally, we have implemented "double-blind" (the information of both evaluation experts and bidders is not disclosed) evaluation reform in public bidding, enabling both SOEs and private businesses to enjoy the same treatment and engage in fair competition. The integration and upgrading of port resources has been promoted, with port cargo throughput surpassing 1.3 billion metric tons last year. The number of China-Europe freight trains has continued to rise.

Fifth, we have strived for shared benefits and made more efforts to achieve new progress in promoting common prosperity. Last year, we promptly relocated affected people when facing historically severe floods. We devoted maximum efforts to disaster rescue and relief, effectively protecting the lives and properties of our residents. We also made all-out efforts to focus on reconstruction after the disaster. We allocated compensation, rescue, and insurance funds in advance, ensuring those affected lived and worked in safe and warm places during the winter. Last year, our total grain output reached 76.2 billion jin (38.1 million metric tons), exceeding the target set by the country. Moreover, we have implemented rolling plans for projects related to people's livelihoods to raise public service standards in education, social security, elderly care, and healthcare. Nearly 900,000 urban jobs were added last year. Doing so has ensured our people feel a growing sense of fulfillment, happiness and security.

Going forward, Hebei will thoroughly implement the important guiding principles set by General Secretary Xi Jinping during his inspection of the province. We will work with solid steps to do a good job in each field, accelerate high-quality development, and strive for a new chapter for Hebei in pursuing Chinese modernization.

That is my brief introduction. Next, Zhang Chengzhong, Jin Hui, and Zhao Dachun, the three vice governors of Hebei, and I will answer your questions. Thank you, everyone.

Xing Huina:

Thank you for your introduction, Mr. Wang. The floor is now open for questions. Please identify the media agency you work for before asking your question.

People.cn:

I'd like to ask about the Xiong'an New Area. This year marks the seventh year since the establishment of the new area. Can you give an introduction about its development over the past seven years? Going forward, what important plans will you focus on? Thank you.

Wang Zhengpu:

I will answer your questions, which are very important and meaningful to Hebei's development. The development of Xiong'an New Area is a major national strategy that was planned, deployed, and promoted by General Secretary Xi Jinping. During each important period and at every critical moment, he has pointed the direction and guided the way for us. Over the past seven years, Xiong'an New Area has emerged from a blueprint into a lively area. With solid steps and steady progress, we are working hard to develop the area into a high-standard, modernized city. Next, I will briefly introduce four aspects of the area's development.

First, the top-level design of the area has basically been completed. We have adhered to a global vision and international standards to develop the area into a place with distinctive Chinese characteristics and future-oriented goals. We formulated a planning system that sets the Plan for Xiong'an New Area in Hebei as the overarching guide. It focuses on the general plan for Xiong'an New Area, the regulatory plan for the Initial Development Zone, the detailed regulatory plan for the Pilot Area, and the governance and conservation plan for Baiyangdian Lake. Special plans for fields such as comprehensive transportation, ecological conservation, and flood control also support the system. The province has implemented the central leadership's Guidelines on Supporting Xiong'an New Area in Comprehensively Deepening Reform and Opening up, and rolled out plans to back up the implementation of relevant financial, fiscal, tax, approval, and other policies, providing important support and guarantees for the construction of the new area.

Second, the new area is taking shape comprehensively as a city. The main road network of the Pilot Area is fully open to traffic. The construction of major municipal infrastructure and a group of landmark projects, such as the Xiong'an Sports Center, has been basically completed. The internet industrial park, science park, headquarters area, and four comprehensive residential areas are all taking shape. In the Initial Development Zone, we have begun the construction of the main road network and accelerated the construction of utility tunnels in the northern section of the fifth borough and other infrastructure. The construction of major projects, including the Xiong'an-Shangqiu High-Speed Railway and the Xiong'an-Xinzhou High-Speed Railway, has also accelerated. Overall, we have developed a total area of 184.5 square kilometers in the new area, involving a total floor area of more than 43 million square meters and over 4,000 buildings.

Third, innovation has enjoyed a more favorable environment. Supported by four relocated universities from Beijing, colleges within Hebei province, and some enterprises, the Xiong'an University Collaborative Innovation Alliance has been formed. We have also accelerated the building of the China Aerospace Information and Satellite Internet Innovation Alliance, and a batch of industrial chain enterprises have been launched in the new area, including China Xingwang Digital Technology Co., Ltd. and PIESAT International Information Technology Limited. With a focus on talent, opening-up, and other institutional innovations, 16 policy measures have been introduced to attract top scientists, young talented people, master craftspeople and other talented people. These 16 items of Xiong'an's talent policies have gained wide attention across society. Moreover, we have launched a scenario collection and display project named "Collection of Future City in Xiong'an" and have also bolstered the rapid development of technological innovation platforms such as the pilot base of the Xiong'an Science and Technology Innovation Center. The new area has become a hub hosting an increasing number of innovations.

Fourth, people's wellbeing has evidently improved. The administrative division code, postal code, and vehicle license plates beginning with "冀X" have been officially put into use in the new area. Enterprises based in Beijing can relocate to Xiong'an through convenient online procedures instead of on-site applications. The social security card is applicable in both Beijing and Xiong'an. A total of 107 services can be accessed through integrated city services. A housing system has been formed in the new area, which ensures supply from multiple sources, provides housing support through multiple channels, and encourages both house purchases and rental. Under this system, more than 120,000 residents have moved into their new homes. We have also stepped up our efforts in forest conservation. The forest coverage rate was 11% before the new area was established and has since risen to 34.7%. We can again enjoy the beautiful scenery of blooming lotuses and lush reeds across Baiyangdian Lake, which has become a paradise for various bird species. The new area is becoming an amazing city that people look forward to visiting and living in

Next, we will firmly adhere to the original mission of the new area, focusing on creating a city of innovation, charm, and the future. First, we will promote relieving Beijing of functions nonessential to its role as the capital. We will accelerate the construction of the first batch of relocation projects, coordinate and enact the second batch of relocation plans, and ensure the implementation of landmark projects. In summary, in the construction of Xiong'an New Area, we will prioritize relieving Beijing of functions nonessential to its role as the capital. Second, we will focus on construction. We will promote the construction of major areas and key projects in an orderly way, improve supporting facilities, and build a modern urban landscape. Third, we will encourage innovation. We will expand the Scenario Pool of Xiong'an Future City innovative platform, promote the introduction of innovative resources through platforms such as the scientific and technological innovation center, and continue to host the "Xiong'an Trip" series of activities. Fourth, we will create a better environment. We will coordinate the ecological governance of Baiyangdian, focus on the construction and management of the "Thousand-Year Forests Project," and create a model city for green development.

Seeing is believing. I extend a warm welcome to all the journalists present. Please take some time to visit Xiong'an New Area in Hebei province and experience firsthand its development and innovative atmosphere. Thank you, everyone!

Economic Daily: 

The results of the 2023 Annual Survey on Business Environment for 100,000 Private Enterprises released by the All-China Federation of Industry and Commerce show that Hebei is one of the top five provinces in the country with the most evident progress. My question is, in terms of optimizing the business environment, what specific measures has Hebei province implemented? What are the new priorities for this year? Thank you.

Wang Zhengpu:

Thank you for your question. This question will be answered by Zhao Dachun, vice governor of Hebei province.

Zhao Dachun:

Thank you for your interest and attention regarding the business environment in Hebei. Since the beginning of this year, our efforts to optimize the business environment have been ongoing, focusing on the general objective of creating a first-class business environment that is market-oriented, governed by the rule of law, and internationalized. We have continuously improved efficiency, pursued reforms, and strengthened regulation.

First, we aim to make public services more convenient. We have set the goal of "four conveniences": simplifying procedures, providing smart services, ensuring immediate processing, and delivering satisfactory outcomes. All approval procedures related to enterprises and people's livelihoods have been centralized at local government service halls. Additionally, we have launched a province-wide integrated online service platform to facilitate "single-window" services and "online access for all." We have integrated all provincial hotlines into a single, unified number, "12345." This makes it convenient for the public to contact us and enables us to proactively detect problems through data analysis and promptly address them. In addition, we can provide real-time supervision and objective evaluation of departmental work, ensuring satisfactory outcomes. We have also innovatively created the "Policy Portal for Enterprise and People's Benefit," transforming the approach from "people seeking policies" to "policies reaching people." This platform ensures that policies are promptly and comprehensively enjoyed. Furthermore, governments at all levels have regularly conducted on-site work to promptly address practical issues. Overall, business confidence in Hebei has generally increased, with an average net increase of over 700 companies per day last year.

Second, we strive to ensure fairer market competition. We treat all entities equally. On the one hand, we have implemented "double-blind" reforms in bidding and tendering processes to achieve full online processing, blind selection of evaluation experts, blind evaluation without the bidders' information, and "decentralized" evaluation with physical isolation, eliminating any possibility of opaque operations. On the other hand, we have thoroughly reviewed and cleared standards and subsidies linked to the nature of enterprises, decisively dismantling "hidden barriers" and delegating more opportunities to the market and enterprises. Since June of last year, the percentage of private enterprises winning bids by volume has increased from 39% to 56%, and the percentage of private enterprises winning bids by number has risen from 73% to 84%. The total revenue and assets of the "Top 100 Private Enterprises in Hebei Province in 2023" increased by 16.43% and 27.28% year on year, respectively.

Third, we are enhancing integrity building. We are urging governments at all levels to protect the legitimate rights and interests of enterprises in accordance with the law, ensuring minimal interference and prompt responses to their needs. We also encourage enterprises to uphold honesty, trustworthiness, and contract compliance. In the National Urban Credit Monitoring Rankings released in February of this year, Shijiazhuang city in Hebei ranked 10th out of 36 cities, including provincial capitals and those at and above the sub-provincial level. Notably, the number of county- and prefecture-level cities that entered the top 20 in their respective categories ranked first and second among all provinces nationwide. This progress is indeed remarkable.

Optimizing the business environment is an ongoing, perpetual process. This year, we will vigorously promote one-stop government services to further enhance the sense of accomplishment for enterprises. We will also continue to improve the level of factor support, ensuring smoother financing channels, more flexible land supply methods, and lower logistics costs, especially for new elements such as computing power and data. Additionally, we will carry out actions to enhance the quality of law enforcement, providing both standards and warmth in enforcement and effectively implementing the rule of law to safeguard the interests of business entities. Thank you!

Hebei Radio and TV Station:

The provincial governor just mentioned that this year marks the 10th anniversary of the significant national strategy for the coordinated development of the Beijing-Tianjin-Hebei region. Relieving Beijing of functions nonessential to its role as the capital is an important task assigned to Hebei by the CPC Central Committee. My question is, how should Hebei seize this opportunity to accelerate its own development while aligning with and serving Beijing and Tianjin? Thank you.

Wang Zhengpu:

Thank you for your question. This question will be answered by Zhang Chengzhong, vice governor of Hebei province.

Zhang Chengzhong:

Thank you for your question. I will answer it. The coordinated development of the Beijing-Tianjin-Hebei region is a significant national strategy. General Secretary Xi Jinping emphasized that relieving Beijing of functions nonessential to its role as the capital city is a priority and urged Hebei to accelerate its development while aligning with and serving Beijing and Tianjin. We will bear in mind General Secretary Xi Jinping's instructions, seize this significant historic opportunity, and comprehensively integrate and undertake the tasks. The coordinated development of the Beijing-Tianjin-Hebei region has achieved remarkable results, entering a stage of all-round, high-quality, and deepened advancement.

First, we will continue to boost efforts to ensure the transfer of functions nonessential to the capital. A key platform system will take shape, where Xiong'an New Area, serving as a major recipient of functions relieved from Beijing, will play the major role. Moreover, supporting platforms, including those promoting cooperation and providing specialized, professional, and customized services, will serve to continually enhance our comprehensive capability in ensuring the transfer of non-capital functions. The development of Xiong'an New Area, serving as a major recipient of functions relieved from Beijing, has entered a phase when the same importance must be attached to both its large-scale construction and its purpose to relieve Beijing of functions nonessential to its role as the national capital. The focus has shifted to high-quality construction, high-level management and high-quality development of relieving Beijing of functions nonessential to its role as the national capital. As such, the role of Xiong'an New Area as a major recipient of functions relieved from Beijing that are nonessential to its role as China's capital has become more evident. Caofeidian district of Tangshan city is positioned with a port, vast tracts of land, and ample potential for development. At the same time, Beijing boasts a wealth of resources in science and technology, education, and talent. As many as 247 industrial projects worth more than 100 million yuan have been transferred from Beijing to Caofeidian, and the latter has invested over 177 billion yuan. Caofeidian is working with Beijing and Tianjin to create new sources of growth for high-quality development in the Bohai Sea region. Around 43,000 companies have moved from Beijing and Tianjin to Hebei province. We will continue to provide good services and support to ensure that the transferred projects can come, stay, and thrive. We will ensure substantial achievements in major areas. Over the past 10 years, the rail network connecting Beijing, Tianjin and Hebei has been quickly taking shape. Moreover, joint efforts to prevent and control environmental pollution have been continuously strengthened, and air quality has been significantly improved. Hebei, Beijing, and Tianjin have made new progress in promoting coordinated innovation, sharing scientific and technological resources, and applying achievements in science and technology research. In 2023, the volume of contracted technology transactions introduced to Hebei province from Beijing and Tianjin reached 81 billion yuan, 12 times that of 2014. To achieve new breakthroughs, we will intensify collaboration with Beijing and Tianjin in such key areas, working together to ensure cleaner air and water, faster traffic, and more dynamic development for the three regions.

Second, we will continue to push forward the integrated development of key regions. Efforts will be intensified to build the demonstration zone for high-quality and integrated development in Tongzhou district and the three northern counties of Langfang city (Sanhe, Dachang, and Xianghe). In the regions along the banks of the Chaobai River, we will promote the integrated development of industrial, supply, and innovation chains. We will continue to hold promotional campaigns for various projects and introduce more projects to cultivate new quality productive forces. Furthermore, we will advance the construction of the Beijing Daxing International Airport Economic Zone, continuously optimize the management system, and explore new approaches for cross-regional integrated development.

Last but not least, we will ensure everyone can enjoy the benefits brought about by the coordinated development. The integration of social security cards in Beijing, Tianjin, and Hebei has enabled people to access services across multiple fields, including government services, social security, and healthcare. As such, it is fair to say that one card takes care of everything. We will continue to accelerate the integration of government services. A total of 203 government service items are now handled according to consistent standards across Beijing, Tianjin, and Hebei, and all business-related government services are now provided on a cross-provincial basis. Take Tongzhou district and the three northern counties of Langfang as an example; in the past, business-related services could only be handled in local areas. However, now, self-service terminals for government services in Tongzhou district enable enterprises to access government service centers in the three northern counties of Langfang without traveling far. Moreover, Beijing, Tianjin, and Hebei have worked together to establish 40 medical treatment partnerships to promote effective cooperation and coordination between different types of medical institutions, and such services have been made available for all cities with subordinate districts in Hebei province. Going forward, we will accelerate the improvement and sharing of public services and ensure that people in the three regions enjoy the dividends of coordinated development. Thank you.

Phoenix TV:

We noticed that Hebei has implemented 20 livelihood projects in recent years. Could you please introduce more details in this regard? What are the key areas of work going forward? Thank you.

Wang Zhengpu:

Thank you. I'd like to invite Ms. Jin to answer your questions.

Jin Hui:

Thank you for your questions. The CPC Hebei Provincial Committee and the Hebei provincial government have firmly adhered to the people-centered development philosophy. As the journalist mentioned, we have implemented 20 livelihood projects for years. We have delivered on our promises to the public through the timely completion of all these tasks. For example, since 2008, we have included rebuilding housing units in run-down urban areas and renovating old residential communities and urban villages as part of our livelihood programs. This has resulted in the reconstruction of 796,000 housing units and the renovation of 13,463 old residential communities and 1,341 urban villages. Such efforts allow residents to transition from old, decayed, and cramped housing units into new apartment buildings. We've also implemented a project to switch rural drinking water sources to river water delivered by the South-North Water Diversion Project. This program has provided nearly 30 million rural residents with access to river water. Hebei was also the first in the country to introduce a program of free genetic screening for pregnant women, which has significantly reduced the birth rates of children with intellectual disabilities and hearing and speech impairments.

A new batch of livelihood projects will be launched in three areas this year. First, stepped-up efforts will be made to improve people's living environment in urban and rural areas. We will complete the task of restoring and rebuilding disaster-damaged rural housing, ensuring all disaster-affected residents can live in safe and secure homes. We are implementing the "pocket park" program to create or upgrade a batch of standardized and small-scale sports themed parks, providing residents with new options for recreation and enjoyment. We will also renovate a batch of toilets in rural areas to help improve the rural living environment. Second, we will focus on strengthening infrastructure in urban and rural areas. We will further elevate the quality of public services, making continued efforts to construct and renovate roads in rural areas, build and expand a group of compulsory education schools, and increase compulsory public education enrollment. We will implement comprehensive scoliosis screenings for all primary and secondary school students across the province, aiming to establish the "Hebei model" for preventing and controlling scoliosis in children and adolescents. In response to families' difficulties in childcare, we will extend the coverage of public childcare services. Third, we will strive to strengthen the social security system. We will make every effort to assist unemployed individuals in finding employment or starting businesses, and support families with elderly members facing special difficulties in renovating their homes to make them more age-friendly. We'll also provide a targeted meal assistance program, meeting the most urgent and pressing needs of people with disabilities. Moreover, we will improve the quality and efficiency of social assistance to ensure people's well-being. So far, all these livelihood projects are being implemented in a smooth and orderly manner. Thank you.

Xinhua News Agency:

Transforming saline-alkaline land into high-yield plots is a major highlight of the work in Hebei. What has Hebei done in treating saline-alkaline land? And what measures will it take this year? Thank you.

Wang Zhengpu:

Thank you to the journalist from Xinhua. Saline-alkaline land is an important aspect of the agricultural work for Hebei. Treating and utilizing saline-alkali land is of great importance to China's national food security. Hebei has a large area of saline-alkaline land. In 2011, Hebei had 10.68 million mu of such land, accounting for 12% of its total farmland. Through our treatment work over more than a decade with measures such as irrigation and water conservancy as well as biological treatment, the area of saline-alkaline land has continued to decrease, demonstrating the great achievements made by Hebei in treating and utilizing saline-alkaline land. 

During his inspection tour of Cangzhou in May last year, General Secretary Xi Jinping issued important instructions, requiring us to make great efforts to develop agriculture featuring saline-alkaline land. Hebei province has resolutely implemented the instructions and taken measures in five aspects in the past year. First, we collected information through technical means and field surveys to determine the quantity, types and distribution of saline-alkaline land. According to our findings, there is currently 5.83 million mu of saline-alkaline land, mainly distributed in Cangzhou, Zhangjiakou and Tangshan. Second, we relied on scientific support. We formed a team of experts to tackle technical challenges, with the aim of making improvements through a combination of water management and soil treatment. Last year, we completed transformation of 180,000 mu of saline-alkaline land. Third, we promoted high-quality crop varieties. We adhere to the principle of developing new varieties suitable for saline-alkaline land and continuing development of facilities for irrigation and water conservancy to reduce salinity and alkalinity. Last year, Huanghua's drought and saline-alkaline-tolerant wheat was listed on the national list of local specialties by the Ministry of Agriculture and Rural Affairs. Fourth, we conducted pilot demonstration programs. We carried out 13 pilot projects tailored to local conditions to explore different industry models and planting patterns. Last year, Hebei province was included in the national pilot program for comprehensive utilization of saline-alkaline land. Fifth, we explored roads to prosperity. We guided leading enterprises in developing deep-processing industries, nurtured well-known brands, promoted the development of industrial chains, and achieved a triple win scenario — whereby farmers earn income, companies gain profit and the market accepts the products. Hebei's saline-alkaline land has produced many distinctive agricultural products, turning what was once a disadvantage into an advantage. These products are of high-quality and suitable for people to eat, making their way into major supermarkets in Beijing and Tianjin. For example, colorful steamed buns from Tangshan and Cangzhou, a provincial-level intangible cultural heritage, are made of drought-tolerant wheat from Cangzhou, and have received widespread acclaim from consumers. 

Moving forward, Hebei will vigorously implement a strategy of sustainable farmland use and the innovative application of agricultural technology to increase farmland productivity. We will focus on key tasks such as the development and promotion of saline-alkaline tolerant crop varieties, soil improvement, specialty industry zone construction, large-scale development and industrialized management. A series of supporting policies and measures will be implemented to tap into the potential of saline-alkaline land development and utilization, maximizing the value of saline-alkaline land through special agriculture. Thank you.

Red Star News:

Last year, Hebei experienced extremely heavy rainfall and flooding. Hebei authorities pledged to complete post-disaster reconstruction within two years. Could you provide us with an update on the progress and outcomes of the restoration efforts? Thank you.

Wang Zhengpu:

Thank you for your question. I'd like to invite Mr. Zhang to answer. 

Zhang Chengzhong:

Thank you for your concern about Hebei's post-disaster recovery and reconstruction. After the massive flooding in July 2023, we resolutely implemented General Secretary Xi Jinping's important instructions, united as one, overcame difficulties and achieved a decisive victory in disaster relief. We have made significant progress in post-disaster recovery and reconstruction. First, we united and worked tirelessly to rebuild a better home. Last year, we repaired, reinforced and built over 165,000 rural houses, while construction of over 21,600 new rural houses will be completed before this winter. We ensured that every household in the affected areas had heating facilities in place to ensure a safe and warm winter. Infrastructure such as water, electricity, roads, gas, communication and sewage treatment was fully restored. All students returned to school on time in the fall of last year. We improved the urban and rural environments, and significantly changed the look of flood-affected areas. Second, the production and living order in the disaster areas have been fully restored. We pre-allocated subsidies and relief funds, pre-compensated insurance funds, and carefully handled the compensation for flood retention areas, providing reassurance to the affected population. We implemented policies to alleviate difficulties and provide assistance, such as rent reductions and loan interest subsidies, allowing market entities to quickly resume normal operations. We restored damaged farmland and agricultural facilities, working to minimize losses from the disaster. In Zhuozhou, one of the hardest-hit areas, some disaster-affected communities established canteens to ensure residents have food, and replanting was carried out in damaged farmland and greenhouses with expert assistance. Finally, we ensured timely and high-quality post-disaster reconstruction. All water-damaged flood control projects should be fully restored by June 30. Over 90% of damaged schools, health centers and nursing homes have been repaired or rebuilt, with full completion expected by the end of this year. In summary, we can fully complete the post-disaster reconstruction work within two years.

In terms of building up capacity for disaster prevention, reduction and relief, we have seized major opportunities presented by the additional issuance of government bonds and have coordinated the planning and implementation of 1,210 projects for post-disaster recovery and reconstruction as well as the improvement of capacity for disaster prevention and relief. Once completed, the projects will greatly enhance Hebei's flood prevention and disaster resilience. In January this year, we issued Regulations on the Transfer of Personnel for Flood Control and Hazardous Relief of Hebei Province, standardizing the entire process of transfer for flood control and hazard evasion and providing legal protection for the transfer of people. In February this year, we cooperated with the People's Insurance Company Group of China (PICC) and other insurance institutions to take the lead in creating comprehensive catastrophe insurance across the country, covering all types of disasters and insured more than 74 million residents in the province with comprehensive catastrophe insurance. Thank you.

Science and Technology Daily:

Data indicates that in the first quarter of this year, investment in Hebei's high-tech industries increased by 45.1%, demonstrating a strong momentum with growth. What experience does Hebei have in promoting technological innovation? What are the next steps in this field? Thank you.

Wang Zhengpu:

Thank you for your questions. I'll invite Mr. Zhao Dachun to answer these questions.

Zhao Dachun:

Thank you for your questions. I'll offer you a brief introduction on scientific and technological innovation in Hebei.

In recent years, we have deeply implemented the strategy of innovation-driven development and striven to turn the key variable of scientific and technological innovation into the maximum increment of high-quality development. Hebei's research and development (R&D) funding growth rate ranks sixth in the country and has maintained double-digit growth for six consecutive years.

First, we let enterprises be the main players. We earnestly execute policies such as additional deductions for corporate R&D expenses and subsidies after R&D investments to make sure enterprises enjoy all the benefit they deserve. At the same time, in order to meet the actual needs of enterprises, we have selected 318 sci-tech special missions to provide one-on-one assistance to "little giant" firms to carry out technological research. Simultaneously, we have also implemented a special initiative to increase R&D investments in SOEs in three years and to strengthen in five years, which has greatly improved the R&D capabilities of provincial SOEs. In the past two years, the R&D investment of Hebei's SOEs has led the nation. The "technology gene" of our enterprises has been significantly enriched.

The second is to empower industrial transformation with technology. We have aimed for high-end, intelligent and green development and to promote the transformation and upgrading of traditional industries. Especially, we have built high-energy innovation platforms with a focus on Hebei's leading industries and conquer key common technologies. For example, the Hebei Iron and Steel Laboratory has gathered eight academician teams to carry out whole-chain innovation from materials and technology to products. The world's first 1.2 million-tonne hydrogen metallurgy demonstration project at Xuanhua Iron and Steel Group Co. Ltd, a subsidiary of our provincial enterprise HBIS Group Co. Ltd, was officially put into operation last year, marking an important milestone in the transformation from traditional carbon metallurgy to new hydrogen metallurgy in China's and even the world's iron and steel industries. At the same time, we have deepened cooperation with research institutes and universities to cultivate and expand strategic emerging industries such as integrated circuits, electronic power equipment and biomedicine. In the first quarter of this year, our high-tech industry investment growth rate was 33.7 percentage points higher than the national average. We have proactively laid out future industries such as aerospace information, advanced computing power and green hydrogen energy. We have built 29 data centers in Zhangjiakou city and several intelligent computing centers in Langfang city. Hebei province ranks fourth in the country in terms of comprehensive computing power index. At the same time, we have also creatively implemented the Science and Technology Innovation Leap Plan at the county level, and the innovation capabilities of Hebei counties have been greatly improved.

Third, we solidly promote the development of Beijing-Tianjin-Hebei region as a collaborative innovation community. We are committed to building a leading area for innovation-driven development in Xiong'an New Area, launching 18 solid incentive policies and building seven innovation ecosystems including satellite internet, a BeiDou Navigation Satellite System and intelligent connectivity, making Xiong'an full with an innovative atmosphere. In addition, we focus on solving the "leapfrog" phenomenon of scientific and technological achievements in Beijing and Tianjin, strive to facilitate the channel for commercializing R&D results from these cities in Hebei, implement special projects for basic research cooperation jointly with Beijing and Tianjin, build a network for the commercialization of scientific and technological achievements, set up two sub-centers of the Jingjinji National Center of Technology Innovation, build up a long-term mechanism for matching the supply and demand of scientific and technological achievements, continue to expand the brand connotation of "So close, so beautiful, spend your weekends in Hebei" and promote the commercialization of technological achievements from Beijing and Tianjin in Hebei, a province with both a beautiful natural environment and a favorable business environment. Last year, we attracted 81 billion yuan in technology contract transactions from Beijing and Tianjin, doubling the amount year-on-year. The siphoning effect of Beijing and Tianjin is acceleratingly transforming into a radiating and driving effect, and this change is quite evident.

Next, we will first seize major national strategic opportunities, give full play to Hebei's geographical position, further deepen collaborative innovation in the Beijing-Tianjin-Hebei region, leverage the role of Xiong'an New Area as an innovation hub and speed up the accumulation of innovative resources and the commercialization of innovation results. Second, we will continue to build a high-level innovation platform, attract high-level innovation teams, create a first-class innovation ecosystem and further enhance the innovation vitality of the province. Third, we will implement the three-year action plan of innovative application scenarios to promote the in-depth integration between industries, universities, research institutes, and end-users, create a number of new industries, new models and new momentum, accelerate the formation of new quality productive forces in Hebei and further promote high-quality development to break new ground.

That's all for my introduction. Thank you.

People's Pictorial:

The slogan "So close, so beautiful, spend your weekends in Hebei" has already become a well-known catchphrase for Hebei. What high-quality cultural and tourism resources can Hebei recommend to tourists for the upcoming May Day holiday? What measures will be taken to improve the quality of tourism services and the tourist experience? Thank you.

Wang Zhengpu:

Thank you for your questions. I would like to invite Ms. Jin to answer.

Jin Hui:

Thank you for your questions. By creating the cultural tourism brand "Spend Your Weekends in Beautiful Hebei," the province not only actively promotes the high-quality development of the cultural tourism industry, but also has accomplished a significant achievement in the coordinated development of the Beijing-Tianjin-Hebei region.

Hebei is so close and so beautiful. It is so close that a one-hour transportation circle has been formed in the Beijing-Tianjin-Hebei region. This region is characterized by the presence of a world-class airport cluster and the three major ports of Qinhuangdao, Tangshan and Cangzhou. The convenient transportation infrastructure facilitates travel in all directions and connects the region to the world. Hebei is also very beautiful, boasting rich historical and cultural heritage, magnificent natural landscape, and warm and genuine hospitality. Hebei is home to 12 5A-level scenic spots and four world cultural heritage sites. It ranks among the top in the country in terms of the number of national key cultural relics protection units and national intangible cultural heritage items.

In recent years, we moved quickly to forge a tourism development paradigm that integrates tourism with culture and promotes wholistic tourism in different seasons. When you come to Hebei, you can visit Yesanpo and Baishi Mountain in Baoding and the Xingtai Great Canyon to experience the majestic mountains, clear waters, marvelous canyons and unique rock formations of the Taihang Mountains. You can also explore historical and cultural cities and towns such as the Zhengding ancient city and numerous traditional cultural villages, tracing the roots of historical culture. You can drive along the Grassland Highway and experience the charm of the summer grasslands. In Chongli, the Winter Olympic town, you can fully enjoy the speed and excitement of world-class ski resorts. Additionally, you are welcome to visit Xiong'an, the City of the Future, and feel the vibrant growth. Explore the beautiful Baiyangdian Lake, known as the Pearl of North China, and experience the charm of northern water towns. The Chengde Mountain Resort, Jinshanling Great Wall and other historical and cultural sites are captivating destinations that never cease to amaze visitors. You can also visit Xibaipo, a sacred site in China's revolutionary history, to witness the profound changes of history and reflect upon the passage of time.

In recent years, we have focused on meeting the demands for high-quality cultural tourism products, emphasizing the integration of culture and travel, and developing wellness tourism. This has made tourism an integral part of people's high-quality lives. Destinations like the Aranya's Lonely Library in Qinhuangdao have become popular attractions for photo enthusiasts. The Unique Dream of Red Mansions theatrical complex in Langfang vividly portrays the timeless story of the novel "The Dream of Red Mansions." The Fantawild Legend Kingdom theme park in Handan has become a preferred destination for educational tourism. Furthermore, the revitalization of intangible cultural heritage items, such as martial arts in Cangzhou, acrobatics in Wuqiao and paper-cutting in Yuxian, allows visitors to immerse themselves in diverse folk customs and traditions.

Next, we will continue to strengthen resource sharing with Beijing and Tianjin, and work together to build the Beijing-Zhangjiakou sports and cultural tourism belt, Great Wall cultural tourism belt and Grand Canal cultural tourism belt. We will make good use of the Winter Olympics legacy, cultivate new forms of tourism, and launch a selection of curated travel routes. We will continue implementing policies such as free passage for tourist charter buses and managing the mini app for travel and tourism in Beijing, Tianjin and Hebei, vigorously supporting travel agencies in bringing visitors to Hebei.

"Spend Your Weekends in Beautiful Hebei." With the May Day holiday fast approaching, we sincerely invite everyone to visit Hebei, explore its beauty, and experience the warm hospitality of its people. Thank you.

Xing Huina:

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

China Daily:

In recent years, Hebei has accelerated its pace of transformation, with rapid development in industries such as biomedicine and electronic information. What plans are in place for fostering emerging and future industries? What adjustments will be made in the future to deal with the current situation of an imbalanced industrial structure? Thank you.

Wang Zhengpu:

Thank you to the journalist from China Daily. I would like to invite Mr. Zhang to answer them.

Zhang Chengzhong:

Thank you for your interest in and support for the industrial development in Hebei. The province of Hebei is known for its traditional industries, with a complete range of industries and a well-established industrial system. In recent years, we have been relying on sci-tech innovation to drive growth and promote the rapid development of emerging industries such as electronic information and biomedicine. In 2023, the revenue of the biopharmaceutical industry exceeded 100 billion yuan, and the revenue of the electronic information industry exceeded 300 billion yuan. Investment in high-tech industries in the province increased by 24.7%. As Mr. Zhao mentioned, the growth rate in the first quarter of this year has been even faster, reaching 45.1%. In order to foster and expand emerging industries, proactively plan for future industries, develop new quality productive forces according to local conditions, and accelerate the construction of a modern industrial system, our next focus will be on three aspects.

The first aspect is "cluster" aggregation. We are implementing actions to promote the integrated development of strategic emerging industry clusters. We are focusing on supporting nine industry clusters, including biomedicine, electronic information and new energy vehicles. Additionally, we are nurturing eight industry clusters, such as new materials, safety and emergency equipment, and modern traditional Chinese medicine. Our goal is to facilitate the transition of strategic emerging industries from mere aggregation to cluster-based development.

The second aspect is strengthening industry chains. We will extend the industrial chains of emerging industries, fostering not only the "big trees" of leading enterprises but also the "small trees" of upstream and downstream supporting enterprises. Ultimately, this will build up the "forest" of emerging industries, producing a more vibrant industrial ecology.

Finally, we will move towards the "new." We will fully leverage our own advantages and proactively plan for future industries. For instance, Hebei has a solid foundation and advantages in the development of the big data industry. By the end of 2023, the total computing power will exceed 21,000 petaflops. Leveraging this computational advantage, we will vigorously develop future industries such as advanced computing and artificial intelligence. Additionally, we will accelerate the development of aerospace information, green hydrogen energy and other industries, enabling future industries to take root, sprout and flourish as soon as possible.

When it comes to Hebei's industries, the first impression is of heavy industries, with steel dominating. Over the years, we have vigorously promoted the transformation and upgrading of traditional industries. Starting in 2022, the steel industry took the lead, launching a campaign for seven key sectors to strive for an "A" grade in environmental performance. The industry also greatly improved standards for process equipment and environmental governance, while promoting advanced technologies such as low-carbon metallurgy and clean steel smelting. Now, "new" content in Hebei's steel enterprises has significantly increased. For example, the proportions of high-end and low-end HBIS Group's products have shifted from 30% to 70% 10 years ago to 80% to 20% now, making the company the largest manufacturer of steel for household appliances and the second-largest for automobile steel in the country.

Moving forward, we will adhere to the principles of high-end, intelligent and green development, and accelerate the structural adjustment, transformation and upgrade of traditional industries. We will seize the opportunity presented by the nation's push for large-scale equipment updates by implementing projects for the technological transformation and upgrading in the equipment manufacturing industry. By deepening the empowerment of science and technology, we aim to promote the development of high-end material products in the steel industry and accelerate the supplementation and extension of the industrial chain, and promote the specialized, refined and sophisticated development of the chemical engineering industry. Furthermore, we will actively promote green and energy-saving construction material products, allowing traditional industries to "grow new branches from old trees." Thank you.

Xing Huina:

One last question.

Yicai:

Mr. Wang mentioned earlier the continuous improvement of Hebei's ecological environment. As the province with the largest steel industry, how does Hebei adhere to the principle of prioritizing ecology and green development? Thank you.

Wang Zhengpu:

Thank you for your question, I will answer it. We believe that a good ecological environment is the most universal benefit for people's well-being. We also well aware that Hebei's ecological environment has been a weak point. In recent years, we have firmly embraced the principle that lucid waters and lush mountains are invaluable assets. We have resolutely prioritized ecology and green development, coordinating efforts to reduce carbon emissions, cut pollution, expand greenery and stimulate growth. We strive to achieve new breakthroughs through comprehensive green transformation. Over the past few years, we have focused on three main areas:

First, we have fought a rigorous battle against pollution. We have coordinated a multifaceted approach to reduce energy consumption, minimize coal use, enforce regulations on enterprises, control dust, limit vehicles and augment greenery. We have worked hard to safeguard blue skies, clear waters and clean soil. In 2023, the average PM 2.5 concentration across the province was 38.6 micrograms per cubic meter, a decrease of 57.6% from 2014, with 245 days of good air quality. The proportion of surface water sections that achieved excellent ratings in the national examination has remained above 80% for two consecutive years. Through our daily efforts, fighting for every microgram, the number of smoggy days in Hebei has decreased and the frequency of blue skies and white clouds has increased.

Second, we have vigorously pursued green and low-carbon transformation. We have steadfastly promoted the structural adjustment of industries, energy and transportation, and actively pursued a grade A environmental performance in key industries such as steel and coking. We have accelerated the construction of pumped storage power stations while the total installed capacity of wind power, photovoltaic power as well as with the inventory of new energy heavy trucks ranks among the highest in the country, leading to increasingly green development. Particularly in the pursuit of grade A environmental performance, we have guided enterprises towards in-depth emission reduction and low-carbon transformation through measures such as setting standards, providing technological assistance and policy incentives, significantly elevating the level of environmental protection in enterprises.

Third, we have continuously focused on ecosystem restoration. We adhere to the holistic approach to the conservation of mountain, water, forest, farmland, grassland and desert ecosystems. We have carried out the construction of the northern sand prevention belt and the treatment of wind and sand sources in Beijing and Tianjin, implemented ecological rectification projects in the Yan Mountains and Taihang Mountains, intensified mine restoration and have promoted large-scale land greening. As you may know, Hebei has a notable example of ecological restoration – Saihanba in Chengde. This place used to be a desert, but after decades of management and rectification, Saihanba has now become the world's largest man-made forest. It has won the UN Champions of the Earth Award and the UNCCD's Land for Life Award, serving as a vivid example of ecological civilization development.

In our future work, we will adhere to the principle that lucid waters and lush mountains are invaluable assets, firmly holding the "golden rice bowl" of ecological resources and effectively utilizing the "golden key" of green development. We will strive to build a beautiful Hebei with blue skies, green land and clear waters, to support high-quality development with a high-quality ecological environment and to ensure that the benefits of a healthy ecology reach more people.

Thank you.

Xing Huina:

Thank you, Mr. Wang and the other speakers, as well as our friends from the media. That concludes today's press conference. Goodbye, everyone.

Translated and edited by Xu Xiaoxuan, Wang Qian, Zhou Jing, Li Xiao, Ma Yujia, Mi Xingang, Gong Yingchun, Yuan Fang, Liu Jianing, Zhang Junmian, Yan Bin, Zhang Rui, Liu Caiyi, Liu Sitong, 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:

Ms. Liang Huiling, deputy secretary of the Communist Party of China (CPC) Heilongjiang Provincial Committee and governor of Heilongjiang province

Mr. Chen Shaobo, a member of the Standing Committee of the CPC Heilongjiang Provincial Committee and executive vice governor of Heilongjiang province

Mr. Yu Jian, vice governor of Heilongjiang province

Mr. Xu Xiangguo, vice governor of Heilongjiang province

Chairperson:

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

Date:

April 26, 2024

Xie Yingjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 12th press conference in the series "Promoting High-Quality Development." Today, we have invited Ms. Liang Huiling, deputy secretary of the Communist Party of China (CPC) Heilongjiang Provincial Committee and governor of Heilongjiang province, to brief you on striving to break new ground in high-quality development and sustained revitalization of Heilongjiang, and then answer your questions. Also present today are Mr. Chen Shaobo, a member of the Standing Committee of the CPC Heilongjiang Provincial Committee and executive vice governor of Heilongjiang province; and Mr. Yu Jian and Mr. Xu Xiangguo, both vice governors of Heilongjiang province.

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

Liang Huiling:

Ladies and gentlemen, good morning. First, on behalf of the CPC Heilongjiang Provincial Committee, the Provincial People's Government and the people of Heilongjiang province, I would like to express my heartfelt gratitude to you for your long-term interest in and strong support for our province.

General Secretary Xi Jinping has always attached great importance to the revitalization and development of Heilongjiang province, and he cares deeply about the people of the province. In September last year, on the occasion of the 20th anniversary of the implementation of the Northeast China revitalization strategy, General Secretary Xi Jinping visited Heilongjiang again, delivering an important speech and giving important instructions. We bear in mind his instructions with gratitude, firmly grasp our strategic positioning in the overall national development, tightly focus on the primary task of high-quality development, and build and strengthen the province as an important national commodity grain production base and heavy equipment manufacturing base, an important energy and raw material supplier, a vital guardian of ecological security in northern China, and a pivotal gateway for the nation's northward opening-up. We are effectively safeguarding national defense, food, ecology, energy and industrial security, and making solid strides in high-quality development, presenting a vibrant scene in Heilongjiang.

First, we are ensuring that sci-tech innovation leads the overall industrial revitalization. Heilongjiang province is rich in scientific and educational resources, with 78 universities and 120 independent research institutes. We are harnessing the role of sci-tech innovation in increasing output, strengthening the use of national-level innovation platforms, and applying a number of major technological achievements to national strategic tasks such as manned spaceflight. The first large-scale scientific facility in China's aerospace field, constructed by the Harbin Institute of Technology, has been put into use. We are promoting the transformation and upgrading of traditional industries, propeling large-scale equipment renewals, and accelerating the transformation toward high-end, intelligent and green development. Daqing Oilfield is striving to be a model and flagship, with the aim of building a centennial oilfield. It has accumulated crude oil production of 2.53 billion metric tons, accounting for 36% of the national onshore crude oil production. Significant breakthroughs have been made in the exploration and development of continental shale oil. We are vigorously developing strategic emerging industries and future industries, creating industrial clusters in fields such as aerospace and high-end equipment, and accelerating the development of new quality productive forces. A number of national major projects in the new era demonstrate China's strength. For example, the hydrogenation reactor produced by China First Heavy Industries set a new world record, and the Baihetan hydropower station, independently developed by Harbin Electric Corporation, has the world's largest single-unit capacity of 1 million kilowatts for hydro-generating units. 

Second, we are firmly fulfilling our role as a "ballast" in ensuring national food security. Heilongjiang province, situated in one of the world's three major black soil belts, boasts a cultivated area of 258 million mu (about 17.2 million hectares), ranking first nationwide. We are committed to cultivating more high-quality crops, actively implementing plans to increase grain production by tens of millions of metric tons, and prioritizing substantial improvements in grain yield per unit area to enhance overall grain production capacity. Last year, grain output reached 155.76 billion jin (about 77.88 billion kilograms), accounting for 11.2% of the national total, and ranking first nationwide in total production, commercial quantity and outbound quantity. Our main focus is on developing modern large-scale agriculture, while simultaneously fostering the development of technology-driven agriculture, environmentally friendly practices, quality enhancement and branded agricultural products. We are dedicated to establishing modern agricultural bases, enterprises and industries, with top-tier standards in farmland management, organic food certification areas and comprehensive crop mechanization rates, all ranking first nationwide.

Third, we are committed to establishing a model region where "clear waters and green mountains are priceless assets, as are snow and ice." Our province boasts expansive forests, grasslands, wetlands, lakes, rivers and extensive snowscapes, serving as vital ecological buffers in the northern expanse of our nation. We have firmly embraced the notion that nurturing greenery equates to enhancing our strengths and safeguarding forests secures our prosperity. Committed to preserving lush mountains and lucid waters, we are charting a course of ecological conservation and green development. Last year, our region achieved an impressive 94.2% of days with excellent air quality, and our instituted systems of river and lake chiefs earned accolades from the State Council for four consecutive years, underlining the pivotal role of green initiatives in fostering high-quality development. We are actively promoting unique cultural tourism and making high-standard preparations for the 9th Asian Winter Games, aiming to cultivate new economic hubs in the ice and snow sectors. Heilongjiang's ice and snow tourism is experiencing a surge in popularity.

Fourth, we are accelerating the establishment of a pivotal gateway for the nation's northward opening-up. Heilongjiang is a crucial node in the Belt and Road Initiative (BRI), boasting 27 first-class ports with neighboring countries. We are intensifying efforts to enhance open channels, continuously improving port efficiency, and normalizing operations of key infrastructure such as the China-Russia Tongjiang-Nizhneleninskoye cross-border railway bridge and Heihe-Blagoveshchensk cross-border highway bridge. The international aviation hub functions of Harbin Airport have undergone comprehensive upgrades. We are also innovating the development of free trade zones, the Harbin New Area and other open platforms, actively expanding into diversified international markets, and constructing a comprehensive pattern of all-round opening-up. Last year, the province witnessed a 12.3% increase in total foreign trade volume. We are consistently enhancing the business environment, offering end-to-end policy support and services throughout the entire business lifecycle. Our approach ensures accessibility when needed and no unnecessary disruption, with a commitment to swift and efficient processing. Last year, the province witnessed a 14% increase in newly registered enterprises. According to a report by the All-China Federation of Industry and Commerce assessing the business environment of thousands of private enterprises nationwide, our province ranked among the top five provinces for most noticeable advancements.

Fifth, we are working hard to improve people's well-being. Last year, we effectively responded to local flood disasters, intensifying efforts to promote post-disaster recovery and reconstruction. We swiftly restored the order of production and daily life in the flood-affected regions, ensuring the safety and heating for residents impacted by the disaster. In addition, we conducted home visits to ensure that residents' heating needs were met. We promoted smart heating, increasing heating capacity to benefit more than 390,000 households and ensuring that people had a warm winter. We also focused on stabilizing employment. An increasing number of college graduates in the province found local jobs last year , registering the highest level in the past five years. Renovation projects for housing units in rundown urban areas, old residential compounds, and dilapidated houses in rural areas have benefited nearly 1 million people. In the first quarter, the growth rate of per capita disposable income for urban and rural residents ranked among the top in the country.

That is all from me for now. Next, my colleagues and I would like to answer your questions.

Thank you!

Xie Yingjun:

Thank you, Ms. Liang. The floor is now open for questions. Please identify the news outlet you work for before asking your question.

CCTV: 

We have noticed that in the context of promoting high-quality development, many regions have expressed their intention to "accelerate the development of new quality productive forces." What measures will Heilongjiang take to develop new quality productive forces according to local conditions? Thank you.

Liang Huiling:

Your question is very important, and I will answer it. We have specifically formulated and published an action plan on accelerating the development of new quality productive forces. We will focus on three aspects to build the province into a hub for developing new quality productive forces.

First, we will focus on scientific and technological innovation as the driving force. Last year, we introduced 60 measures for innovative development and many other measures for driving industrial revitalization with scientific and technological innovation. We established technology transformation platforms like the Institute for Advanced Technology and the Institute for Artificial Intelligence at Harbin Institute of Technology. In 2023, we completed the transformation of 589 major scientific and technological achievements, and the number of high-tech enterprises grew 22.9%. We will make good use of national sci-tech innovation platforms such as the Harbin-Daqing-Qiqihar National Independent Innovation Demonstration Zone. Efforts will be made to achieve major scientific and technological breakthroughs, cultivate strategic scientific and technological strength, and promote research into new and disruptive technologies in fields such as intelligent robots, life sciences, and continental shale oil. We will adhere to a mechanism in which enterprises set the agenda, research institutions address the problems, and markets evaluate the research results. We will improve this collaborative innovation mechanism among industries, universities, research institutions, and end-users, with enterprises at its core. Efforts will be made to build an ecosystem for innovation and entrepreneurship involving universities and research institutions. We will cultivate and introduce high-tech companies, accelerate the transformation of sci-tech achievements in the province, and foster new growth drivers.

Second, we will focus on local conditions and implement tailored measures. We remain committed to developing a modern industrial system with Heilongjiang's distinctive features, based on the province's unique resource strengths, industrial foundation, and research conditions, to foster new quality productive forces tailored to local conditions. On the one hand, we will revitalize old industries. We will carry out actions to promote technological transformation among 1,000 enterprises each year. With a focus on promoting digital transformation of the manufacturing industry and enhancing the digital capabilities of small and medium-sized enterprises, we will make efforts to accelerate the transformation and upgrading of traditional industries. In the first quarter, investment in technological transformation grew 43.9%. On the other hand, we will create new engines for revitalization. We will implement plans for developing strategic emerging industries and future industries. In the first quarter, the output of high-end equipment, aerospace, and electronic information all experienced double-digit growths.

Third, we will prioritize the development of talent. We will improve the working mechanism for talent cultivation, as part of the efforts to support the development of new quality productive forces. We will work to ensure that the effect of policies is fully unleashed. Guided by the 60 measures for talent revitalization, we will continue to issue supporting documents to fully remove the barriers in talent cultivation, recruiting, and employment. The province has seen the number of its skilled individuals grow by over 260,000 in less than two years. Moreover, the previous trend of people with senior professional titles leaving universities in the province has reversed, with an influx of such individuals now returning to these institutions. We will continue to stimulate the vitality of talent and deepen the reform of the talent system and mechanism concerning salary distribution and the transformation of sci-tech achievements. In addition, we will make good use of systems such as the "negative list" for scientific research funding. We will step up efforts to turn talent into the primary driving force for innovation.

Southern Metropolis Daily:

We have noticed that in 2022, Heilongjiang introduced the 60 measures for talent revitalization in the new era. Could you please tell us what changes these policies have brought about in terms of attracting and retaining talent in Heilongjiang? What further steps will be taken to consolidate the talent foundation for high-quality development? Thank you.

Liang Huiling:

Thank you for your interest in talent revitalization. This question goes to Mr. Chen.

Chen Shaobo:

Thank you for your concern and support for talent revitalization in Heilongjiang. Talent is the key to Heilongjiang's revitalization. Therefore, we have consistently adhered to the principle that talent is our most valuable resource and have introduced a series of concrete measures.

First, we have advanced efforts to implement active and effective talent revitalization policies. As mentioned, we have formulated and implemented the 60 Measures for Talent Revitalization in Heilongjiang in the New Era, along with a series of supporting policies. These policies are active, open, and of high value and quality, leading to positive results. The governor noted that our overall talent pool is expanding, with a significant increase in the number of high-end talents introduced into the province. Moreover, while there was previously a net outflow of individuals with senior professional titles from universities, this trend reversed last year, resulting in a new influx of such talent. Additionally, both the number of college graduates opting to remain in the province and the number of those coming here for employment reached a five-year high, signaling a promising trend of talent returning to and staying in Heilongjiang.

Second, we have made every effort to build a platform for talent development that enables talented people to unleash their full potential. As we all know, Harbin Institute of Technology is one of the best universities for robotics. We have fully leveraged our professional expertise in this regard, and integrated various resources and production factors to give full support for the university to accelerate commercialization of their research findings in robotics. Substantial results have been achieved. I would like to take two companies here as an example. Harbin Boshi Automation Co. Ltd. has achieved breakthroughs in key technologies regarding robots' ability to work in front of a furnace, and Harbin Sagebot Intelligent Medical Equipment Co. LTD. has realized domestic production of surgical robots. Such accomplishments are not easy to achieve. Through these industries and platforms, we have attracted a large number of robotics professionals and other related professionals to the province. Next, we will make sustained efforts in creating suitable jobs and building favorable platforms to better help talented people settle here.

Third, we have intensified efforts to launch key talent programs. In order to support talent development with good faith and money, we have set up special funds financed by the provincial government to implement the "Leading Wild Goose" talent support plan, actively recruiting scientists and technologists who are able to organize and lead scientific research and who have extensive influence in relevant industries and fields, and giving them greater autonomy in their technical routes and their team recruitment and staffing. Meanwhile, we have vigorously implemented a training program for outstanding engineers, steadily promoted the "Skilled Personnel in Heilongjiang" initiative, and continued to carry out activities such as the "Heilongjiang Talent Week." We are accelerating the establishment of a supporting system for talent programs and projects covering all key sectors and areas. Last year, highly skilled personnel reached 825,000 in the province, accounting for 31.7% of the entire skilled workforce.

Fourth, we have jointly fostered a nurturing environment for talent in Heilongjiang province, satisfying the needs of local talent and attracting talented people from afar. We have continuously improved a systematic mechanism to ensure services and support for talent, carried out tiered accreditation for high-level talent, and issued Heilongjiang Talent Cards that offer 24 exclusive services in seven areas including children's education, medical examination and treatment, and transportation, relieving the worries of high-level talent. Meanwhile, we have attached great importance to the discovery, cultivation and use of various talented people, such as people with vocational skills and local talented people, making it common practice throughout the province to identify gifted individuals, value them, respect them and put them to good use.

I would like to take this opportunity to invite talented people from all over the world to join us in building and developing Heilongjiang. Here, you and the province will contribute to each other's success and create a better future together. Thank you.

Xinhua News Agency:

When it comes to Heilongjiang province, people will think of the Greater and Lesser Xing'an Mountains as well as some large rivers such as the Songhua River and the Wusuli River. The province boasts very rich ecological resources. My question is: Over the last few years, what is the situation with ecological and environmental protection in Heilongjiang? Thank you.

Liang Huiling:

Thank you for your attention to this matter. I will invite Mr. Yu to answer your question.

Yu Jian:

Indeed as you said, located in the northernmost and easternmost part of our motherland, Heilongjiang boasts a vast territory, beautiful mountains and rivers, a pleasant eco-environment and distinct seasons. The province remains as determined as ever to pursue green development that prioritizes environmental conservation and adheres to build ecological security shields in northern China. Our work mainly focuses on three aspects. First, we consider ecological resources as the strongest foundation for development. We have taken a holistic and systematic approach to the conservation and improvement of mountain, water, forest, farmland, grassland and desert ecosystems and strived to enhance the diversity, stability and sustainability of the ecosystem. The forest area in Heilongjiang hits 201,200 square kilometers; its wetland area reaches 51,400 square kilometers; and there are 46 national nature reserves in the province. All the numbers rank among the top in the country. Second, we take a beautiful environment as the most inclusive benefit to people's wellbeing. We have given greater priority to keeping our skies blue, waters clear and lands clean. The evaluation results of Heilongjiang's pollution prevention and control work have been among the best nationwide for many consecutive years, showing continued improvement in the environment. The province recorded good or excellent air quality on 94.2% of the days in 2023, 7.4 percentage points higher than the national average. The average annual concentration of PM2.5 stood at 25.5 micrograms per cubic meter, 4.5 micrograms lower than the national average. Our people now enjoy more blue skies, clearer waters, lush mountains, and a growing sense of happiness brought by a healthy environment. Third, we take ecological values as the most enduring competitive edge. Under the premise of protection, we have vigorously developed industries involving eco-tourism, non-timber forest-based economy , health and convalescence tourism, and forest food, so as to promote ecological product value conversion and to constantly translate ecological strengths into development strengths.

For the next step, we will further coordinate the structuring of ecological conditions, industries and residents' livelihood, going all out to build a green Heilongjiang to safeguard national ecological security and to strive to make positive contributions in advancing the Beautiful China Initiative. We will make every effort to safeguard green ecology, to advance pollution prevention and control work, to timely address environmental pollution cases that occur at people's doorsteps and to continue improving the environment, so that people in Heilongjiang will enjoy more blue skies, lush mountains, clear waters and clean air. To promote green development, we will make concerted efforts to cut carbon emissions, reduce pollution, expand green areas, and boost economic growth. We will also build and improve a green, low-carbon and circular economic system, and promote green transition in all respects of economic and social development. Moreover, we will focus on building green homes by advocating green ways of living including green travel, water and electricity conservation, and an "empty plate" campaign. We will also encourage low-carbon, green consumption, improve energy-saving and environmental protection facilities as well as build a modern Heilongjiang featuring a beautiful environment, a developed green economy, and low-carbon ways of production and living. Thank you!

Jinan Times APP:

Heilongjiang is located in one of the world's three major black soil belts, is known for its famous "Great Northern Wilderness" and is a major agricultural and grain-producing province. How does Heilongjiang plan to make new contributions to ensure China's food security and act as a solid foundation for achieving this purpose? Thank you.

Liang Huiling:

Thank you for your question. I will answer this question. The focus of our work is in four aspects.

First, we will improve the comprehensive production capacity of grain. We will implement the plan to increase grain production by 10 million tons, focusing on the integrated utilization of fertile farmland, high-quality seeds and machinery, and useful measures and mechanisms. We will systematically integrate policies, engineering and agricultural measures to stabilize the sown area of grain and focus on increasing per unit yield in large area. By 2026, the comprehensive grain production capacity in the province will reach 180 billion jin (90 billion kilograms).

Second, we will strengthen the protection and utilization of black soil. In terms of arable land, black soil is extremely scarce and invaluable. We will adhere to four specific approaches, increasing efforts to protect black soil, and ensuring that its area does not decrease and that its quality improves. First, we will strengthen engineering measures to prioritize the construction of high-standard farmland on black soil. Second, we will reduce the use of chemical fertilizers and pesticides, return plant stalks to fields, apply organic fertilizer, and substitute with biological agents, with the aim to increase organic matter content of soil. Third, we will highlight technological empowerment, relying on biotechnology and digital technology to improve the management and utilization of black soil. Fourth, we will change backward production methods, promote conservation tillage across large areas, and strictly crack down on unauthorized occupation and destruction of farmland, so as to achieve sustainable utilization of black soil.

Third, we will empower agriculture with science and technology. We give greater prominence to the development of agricultural sci-tech, with our contribution rate of agricultural technological progress ranking among the top in the country. We will vigorously implement the revitalization of the seed industry, establish national bases for quality soybean seed breeding and japonica rice seed production, and strengthen and expand the core of the seed industry. We will build a national pioneering area for large-scale, high-powered, high-end and intelligent agricultural machinery and equipment, accelerate the upgrading and replacement of agricultural machinery, and be the first to achieve the modernization of agricultural material and equipment. Supported by the national key laboratory for smart farming technologies and systems, we will expand the application scenarios of large-scale smart agriculture, and aim to establish 20 unmanned smart farms, each covering an area of 10,000 mu, by 2025.

Fourth, we will create a pioneering region in adopting an all-encompassing approach to food. Leveraging our advantageous location in the world's prime livestock belt, we will vigorously develop modern animal husbandry. We will establish the largest high-end infant formula production base in the country, with the aim of creating a crucial strategic guarantee base for meat, eggs and dairy products at the national level. Additionally, we will harness the advantages of undergrowth resources to promote the recognition of the "nine delicacies and 18 products," such as pine nuts, black fungus and Lonicera edulis fruit, thereby creating a supply hub for eco-friendly forest food products. Moreover, we will capitalize on the province's advantages in rivers and lakes by expanding the supply of premium and high-quality fish, including 26 species of freshwater fish, with the aim of establishing a base for the supply of high-quality cold-water fish. Thank you.

21st Century Business Herald:

As a major agricultural province, the construction of livable, prosperous, harmonious and beautiful rural areas in Heilongjiang province is closely related to the well-being and sense of achievement of rural people. What measures has Heilongjiang taken to learn from and apply the experience of the "Thousand Villages Demonstration and Ten Thousand Villages Renovation" project in promoting comprehensive rural revitalization? And what achievements have been made? Thank you. 

Liang Huiling:

Thank you for your interest in this matter. I'd like to invite Mr. Xu to answer these questions.

Xu Xiangguo:

Thank you for your questions. Over the past few years, we have been diligently promoting the comprehensive revitalization of rural areas in line with the specific conditions of Heilongjiang province. We have placed significant emphasis on respecting the will of the people and have implemented concrete measures in the following key areas:

First, we organized study visits to Zhejiang province and hosted thematic seminars. Simultaneously, we held a series of on-site meetings to promote progress, and enable officials at all levels to transform their learning into practical work efficiency through hands-on experience. Through a category-based, region-specific approach, we advanced village planning and constructed five types of beautiful and livable villages, including ecologically friendly villages, well-preserved ancient villages, and aesthetically pleasing and livable villages.

Second, we have implemented a five-year living environment improvement campaign, promoting initiatives such as domestic sewage treatment, household garbage management and enhancements to the appearance of villages. We have also introduced innovative residential construction projects, resulting in 95% of villages across the province becoming cleaner, tidier and more orderly.

Third, we have implemented the initiative to create 100 exquisite villages, 1,000 demonstration villages, and 10,000 beautiful villages. We aim to cultivate distinctive industries, improve public services, and drive the overall creation and enhancement of 9,829 villages (state farms) across the entire province. 

Fourth, we promulgated the regulations of Heilongjiang province on the promotion of rural revitalization and formulated and implemented guidelines for the overall revitalization of rural areas. We established and improved mechanisms for integrated urban-rural management and protection, public participation, and performance evaluation and incentives.

You asked about specific achievements in comprehensive rural revitalization. I think that they can be summarized using three words to provide you all with an introduction.

The first word is "beauty," which describes the picturesque village landscapes. We have focused on creating 100 exquisite villages at the provincial level and 1,000 demonstration villages at the municipal level, promoting the construction of livable, business-friendly, harmonious and beautiful rural areas across the province. Currently, the 54 China beautiful leisure villages and 87 pilot programs for improving residential environment across Heilongjiang have together created a beautiful new rural landscape. As many netizens have commented, "Rural life here is very soothing and appealing."

The second word is "harmony," which signifies the harmonious spirit of the countryside. Our rural areas are tranquil, and local people are pure and unpretentious, just as the lyrics say, "In harmony, neighbors and kin, with unity found in young and old alike." There, we can see and feel the mutual assistance among villagers, who live together as members of one family. We can also feel their sincerity and enthusiasm towards guests. At present, across the province, there are 728 national demonstration villages and towns for rural governance, with 5,212 exemplary villages promoting interconnected development. 

The third word is "happiness," which reflects the joy of the farmers. In the past, people carved out a living in the vast wilderness, setting up shacks, living in cellars. Through their hard work, they turned the once desolate "Great Northern Wilderness" into the now prosperous "Great Northern Granary." Now, leveraging ecological advantages and snow and ice resources, farmers actively engage in new industries and business forms, such as agrarian cultural exhibitions, leisure fruit picking, and forest wellness retreats. They have fertile soil for entrepreneurship, ample job opportunities, and with increased incomes, their wallets have grown fuller. Wealth springs from the chernozem soil, and happiness abounds in this great natural oxygen bar. That's all from me. Thank you.

Red Star News:

We have observed that in the past two years, the number of enterprises investing in Heilongjiang has been increasing, which, to some extent, reflects changes in the local business environment. What has Heilongjiang done to improve the business environment, and what other measures will be taken? Thank you.

Liang Huiling:

Thank you for your attention to this matter. I'll invite Mr. Yu Jian to answer this question.

Yu Jian:

Thank you for your question. As we all know, Harbin's winter sports tourism has recently become a sensation. With proactive service support from government departments, commitments upheld by businesses, and warm hospitality from the locals, Heilongjiang has embraced a "pamper the guests" approach. This has garnered extensive praise and serves as a testament to the ongoing improvement of our province's business environment. As Governor Liang Huiling just said, last year saw a 14% increase in newly registered market entities, a 13.8% rise in newly signed investment projects, and a 68.5% growth in newly established foreign-invested enterprises compared to the previous year.

In our practical work, we focused on the following four aspects. First, we established a mechanism for people to learn from each other and strove for excellence. We benchmarked against advanced regions and mobilized the entire province's efforts to carry out targeted campaigns to optimize the business environment. Through monthly scheduling, quarterly reporting, semi-annual reviews and annual assessments, all local departments have strived for excellence, thus cultivating a favorable atmosphere and inter-level synergy centered on improving the business environment.

Second, we worked with sincerity and passion. By soliciting enterprises' demands and providing government services to them, we opened "fast lanes" and "green channels" for problem-solving. Across the province, 30,000 officials have partnered with 522,000 enterprises, resolving 17,800 practical problems. We have implemented inclusive and prudent regulation and law enforcement across the board, allowing businesses ample room to make and learn from mistakes. More than 310,000 such cases have been handled, demonstrating compassion in our law enforcement. A series of pro-business relief policies were introduced, and the timely and accurate delivery of these policies via the Addressing Problems Across the Province app has ensured that these enterprises can leverage our policies to the fullest extent.

Third, we prioritized immediate action and excellence. With the development of digital governance, we have optimized our administrative service model, advancing multiple initiatives for efficiently accomplishing tasks. Nationally, Heilongjiang leads the way in innovating and demonstrating a focused approach to "retirement procedures," reducing the processing time from 30 working days to just 10 minutes, marking a historic leap. We have introduced more than 500 convenient applications related to public security, public affairs, human resources and social security, healthcare, and transportation, significantly cutting down both the steps and time required for public services.

Fourth, we honored our commitments and tried our best to meet people's demands. We improved the credit system and continued a special campaign to address the issue of "new officials ignoring old debts," clearing up overdue payments to private enterprises. Any actions that damage the government's credibility are met with serious investigation and consequences. The 12345 public service hotline serves as a "central customer service hub", with government departments swiftly responding to and addressing concerns of citizens and market entities. In this way, we ensure that the pressing difficulties and problems that concern business entities and people are resolved.

We are well aware that there is always room for improving the business environment. We will further cultivate a world-class, market-oriented, law-based, and internationalized business environment, making Heilongjiang a favored destination for investment, stimulating the vitality of business entities, and promoting high-quality development and sustainable revitalization. We welcome more companies to invest and do business in Heilongjiang. I believe that through our efforts, the business environment will continue to improve. Thank you.

CNR:

It was just mentioned that Harbin experienced a surge in popularity around this year's Spring Festival holiday, with its winter sports tourism becoming a cultural phenomenon. How will Heilongjiang maintain the momentum of its ice and snow tourism and further amplify the spillover effect? Thank you.

Liang Huiling:

Thank you for your question. During last year's snow and ice season, Heilongjiang launched a "pamper the guests" approach, sparking enthusiasm among visitors. This has led to the flourishing of tourism and related industries, greatly boosting the morale of local officials and residents, and enhancing their confidence and determination to revitalize and develop the region. Moving forward, we will redouble our efforts to enrich our offerings and enhance our services, ensuring that visitors to Heilongjiang are happy, comfortable, and at ease.

First, we will create new growth drivers for the ice and snow economy. Key scenic spots such as Harbin Ice and Snow World, Yabuli Ski Resort and Xuexiang village will be upgraded. The amount of ice at the Harbin Ice and Snow World this year exceeded 200,000 cubic meters, which is nearly three times as much as last year. If you come to Harbin again this winter, you will see a larger, more cultured and more international ice and snow kingdom. We are making preparations for the 9th Asian Winter Games to a high quality, building the China-Shanghai Cooperation Organization (SCO) Ice and Snow Sports Demonstration Zone to a high standard, and creating five centers for ice and snow sports events, talent, industry, culture and cooperation . We will promote innovative development of winter sports equipment such as ice skates, snowboards and ski lifts, and build the world's largest new energy vehicle extreme cold-weather testing base in Heihe and Mohe. We will expedite the development of the entire industry chain of ice and snow sports, ice and snow culture, ice and snow equipment, and ice and snow tourism, build a leading ice and snow economic area, and turn "cold" resources into "hot" economy .

Second, we will develop high-quality, integrated and all-season tourism. We will give full play to the advantages of different sceneries in the four seasons and rich geography, and strive to create special projects such as forest tourism, wetland tourism, boundary river tourism and border tourism, and accelerate the cultivation of new tourism formats such as camping, self-drive tours, travel photography and study, and elderly-care and health tourism. We will strive to transform the characteristic cultural tourism industry from "one place and one season" to "all regions and all seasons." We will strengthen the construction of tourism infrastructure supporting facilities, build star-rated homestays across the province, and a multi-faceted tourism transportation system, accelerate the popularization and promotion of smart tourism, and comprehensively improve tourist satisfaction. We will continue to regulate the order of the tourism market, make good use of advance compensation, ensure that complaints are handled in a timely fashion, and effectively protect the rights and interests of tourists.

Third, we will expand and amplify spillover effects of the tourism industry. We will promote the integrated development of tourism and culture, sports, health care, catering, sports equipment and other primary, secondary and tertiary industries, so that Heilongjiang's history and culture, music and performing arts, local delicacies, and sports events can provide tourists with new experiences, and ensure the local tourism infrastructure and thermal clothes and hats, green food, and special cultural and creative products offer consumers across the country with more choices. We will promote good practices and models of ice and snow tourism, strive to create a first-class business environment, and attract more companies to invest and develop in Heilongjiang. We will see that positive work styles in ice and snow tourism continue to thrive, and take solid, pragmatic and resolute steps to ensure that officials become more capable of serving the people and pursuing development. Thank you.

China Daily:

Heilongjiang is located between 43 degrees and 53 degrees north latitude, in the "Golden Belt" for corn and livestock. We have noticed that Heilongjiang has created distinctive brands in recent years, such as Black Soil Premium Products and Forest Delicacies and Specialties . What has been the result? What is the next step in leveraging the natural endowments to further promote the high-quality development of the processing of agricultural products? Thank you.

Liang Huiling:

Thank you for your interest in this work. I would like to invite Mr. Xu to answer these questions.

Xu Xiangguo:

Thank you for your questions. The two brands of Black Soil Premium Products and Forest Delicacies and Specialties are not only representatives of Heilongjiang's regional agricultural products, but also a green label for agricultural products in the province. Currently, a total of 221 offline stores in 63 cities across the country sell those two brands, with online and offline sales reaching 7.3 billion yuan since 2023. With the rising popularity of Harbin last year, local specialties such as chicken stewed with mushrooms, iron pot stewed goose, wild blueberries, black fungus, hazelnuts, lion's mane mushrooms (Hericium erinaceus) and cranberries, have also attracted the attention of people across the country.

In terms of further promoting the high-quality development of the agricultural product processing industry, we are mainly focused on the principle of "grain planting to the forefront and produce to follow (This means that grain planting should be the source, and produce should be found on the dining table, which requires us to properly deal with the relationship between planting and marketing)" and "agriculture to the forefront and industry to follow (This requires us to integrate the primary and secondary industries and realize intensive processing of agricultural products)", solidly advancing the three-year action plan for the high-quality development of the agricultural product processing industry. Our work is focused on four main aspects:

First, we will genuinely cultivate business entities. We will give full play to the demonstration and leading role of state-owned enterprises (SOEs) such as Beidahuang Agricultural Reclamation Group and leading enterprises in the province such as Feihe Dairy , and build larger and stronger demonstration parks as platform carriers. At the same time, we will expedite the cultivation of a group of small and medium-sized enterprises (SMEs) featuring fast development speed, strong innovation ability, high-quality products and good economic returns, so as to form a development pattern in which large enterprises serve as the backbone of the industry and numerous SMEs are spread across the province.

Second, we will carefully extend the processing chain. As Ms. Liang explained about the protection of black soil, Heilongjiang's certified planting area of green organic food is 94.59 million mu. This is our greatest confidence in developing green agriculture. We will focus on the standardized production of raw materials on one hand and green food processing on the other, and transform and upgrade the traditional processing industry through technological improvements. At the same time, we must strengthen the empowerment of technological innovation to develop and expand our emerging processing industries, develop high-end and refined products with strong market competitiveness, further extend the industrial chain, strengthen the supply chain, and enhance the value chain.

Third, we will closely focus on food quality and safety. We will strictly adhere to the bottom line of product quality, establish a standardized, institutionalized and regular mechanism, and implement quality supervision throughout the entire chain, link and life cycle, so that the quality and safety of agricultural products can be traced throughout the entire process, and the approval rate of provincial agricultural product quality and safety routine monitoring can be stabilized at above 98%. We will truly ensure food safety for consumers "from field to tongue" and "from farm to table."

Fourth, we will wholeheartedly build high-quality brands. This year, whether we are carrying out brand promotional events in first-tier cities, brand culture empowerment campaigns, building themed restaurants, upgrading premium supermarkets, or assisting farmers with livestreaming platforms, we will serve the best dishes and the best products, so that more people can enjoy delicious, fresh, safe and healthy food. Thank you.

Heilongjiang Radio and Television:

The 13th Heilongjiang Provincial Congress of the CPC in 2022 proposed the development of the province in six aspects, with "Quality Longjiang" taking the priority. How does Heilongjiang plan to promote and advance this initiative? What are the key directions? Thank you.

Chen Shaobo:

Thank you for your attention and support with the development of "Quality Longjiang." Heilongjiang has clearly stated its commitment to vigorously building a "four-in-one" quality Longjiang by integrating high-level standards, quality, brands and reputation. We are focusing on the following aspects:

First, we adhere to development that is led by standards. As everyone knows, black soil and ice and snow tourism are Heilongjiang's merits. We have taken the lead nationally in establishing a local standard system for "black soil fertile plow layer construction" and an ice and snow industrial standard system. The Standardization Administration has released 11 national standards for ice and snow sports, with our province taking the leading role in their formulation. Last year, there were 21 new national-level standardization pilot demonstration projects in our province, with 15 standards incorporated into the national enterprise standards "leading" list and eight standards filling international gaps. In addition, China Feihe Limited led the formulation and implementation of two international association standards.

Second, we work to strengthen quality management. We have specifically formulated a set of 60 indicators for high-quality development tailored to the reality of Heilongjiang. We have vigorously implemented projects to improve the quality of industry and to enhance the capacity of quality infrastructure, aiming to comprehensively improve product engineering and service quality. Our food safety work has been rated A-level for six consecutive years by the Food Safety Commission of the State Council in their evaluation and assessment. Last year, two projects won the Luban Prize and the Dayu Prize, respectively. Two individuals and two teams were awarded the National Engineer Awards.

Third, we emphasize brand-driven development. We have vigorously carried out brand building activities, earnestly promoted the transformation and upgrading of "time-honored brands," comprehensively cultivated brands across four fields and extensively fostered "new brands," making every effort to build well-known brands that represent Heilongjiang's characteristics and reputation. To be specific, "the four fields" refers to crude oil, raw coal, grain and timber, all of which represent competitive products from Heilongjiang. Now, "time-honored brand" enterprises, such as China First Heavy Industries, Harbin Electric Corporation, Daqing Oil Field and Beidahuang Group, have been reinvigorated, with 35 companies being listed as China Time-Honored Brands. We have 168 national Geographical Indication (GI) products such as Wuchang rice. We will continue to enhance brand building, allowing more "black soil superior products" to reach the dining table of Chinese people and empowering more "flagship products" from "Longjiang manufacturing" to contribute to the development of a strong country.

Fourth, we step up credit support. We are vigorously improving the social credit system, coordinating the building of government integrity, business integrity, social integrity and judicial credibility. In order to effectively solve the financing problems of small and medium-sized enterprises, we have strived to build a first-class financing credit information platform. Since the platform's official launch this March, 129 various financial institutions have joined in just over a month, releasing 78 financial products and issuing a total of 7.5 billion yuan in loans. This year, Heilongjiang's ice and snow tourism has become a trending topic on the internet, allowing everyone to feel the sincerity and honesty of the Heilongjiang people. Honesty and trustworthiness have become a bright business card in the practice of high-quality development in Heilongjiang. Thank you.

Xie Yingjun:

The last question.

China News Service:

A few days ago, a themed celebration was held in Harbin to mark the countdown of 300 days to the Asian Winter Games. May I ask, what kind of Asian Winter Games will Harbin present to everyone? Thank you.

Liang Huiling:

Thank you for your attention to the Asian Winter Games. The Ninth Asian Winter Games will be held in Harbin from Feb. 7 to 14, 2025. Following the Beijing Winter Olympics, this will be another comprehensive and international winter sports event hosted by China. Heilongjiang has unique ice and snow resources and a solid foundation in ice and snow sports. We will leverage the advantages of being a competitive ice and snow sports province and mobilize the entire province to make this Asian Winter Games a sports and cultural event that showcases Asian style, Chinese ethos, Longjiang characteristics and the charm of this ice city.

First, we will abide by the principle of "a streamlined event" in organizing the games. Harbin is a two Asian Winter Games city, with the first-time hosting being the 3rd Asian Winter Games in 1996. Thus, Harbin has a certain foundation for venue facilities. We will coordinate the needs of the games and post-game utilization, systematically and properly use existing resources, avoid large-scale demolition and construction and utilize the existing facilities for renovation in the implementation of "two competition areas, nine venues, and 37 villages."

Second, we will stick to the principle of "green development" in organizing the games. We will integrate the concept of green development throughout the entire process of the Asian Winter Games. Venue renovations will use energy-saving and environmentally-friendly building materials as well as green, low-carbon construction techniques to ensure environmental protection, green technology and eco-friendly furnishings. We will widely use clean energy, environmentally-friendly products and green, safe food in all aspects of the games, such as using new energy vehicles for torch relay and game services as well as using biodegradable materials for all tableware. The athlete village, technical officials' village and media village will also be heated by clean energy.

Third, we will adhere to the principle of "smartness" in organizing the games. We will apply information technology, intelligent services, biometric identification, artificial intelligence and other technologies in training, event management and security services, providing scientific and technological support for the events and service guarantees. We will comprehensively upgrade the network of venues, transportation hubs, high-speed rail, scenic spots and main hotels. For example, 5G-A technology will be used in venues to provide peak downlink speeds of up to ten gigabits and uplink speeds of up to one gigabit, providing a smoother network experience for everyone.

"Dream of Winter, Love among Asia." The mascots of this Asian Winter Games, "Binbin" and "Nini," are two lovely little Manchurian tigers, symbolizing "Harbin welcomes you." We sincerely look forward to meeting friends from all walks of life in this beautiful ice city and to share the grandeur of the Asian Winter Games. Thank you all!

Xie Yingjun:

Thank you Governor Liang and all the presenters for your introductions. Thank you to all the journalists for your participation. Today's press conference will conclude here. Goodbye.

Translated and edited by Wang Yiming, Wang Qian, Cui Can, Wang Wei, Li Xiao, Liu Caiyi, Liu Sitong, Zhang Tingting, Liu Qiang, Yan Bin, Ma Yujia, Mi Xingang, Yuan Fang, 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. Li Lecheng, deputy secretary of the Communist Party of China (CPC) Liaoning Provincial Committee and governor of Liaoning province

Mr. Wang Jian, a member of the Standing Committee of the CPC Liaoning Provincial Committee and executive vice governor of Liaoning province

Mr. Zhang Lilin, a member of the Standing Committee of the CPC Liaoning Provincial Committee and vice governor of Liaoning province

Mr. Gao Tao, vice governor of Liaoning province

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 23, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 11th press conference in the series "Promoting High-Quality Development." Today, we have invited Mr. Li Lecheng, deputy secretary of the Communist Party of China (CPC) Liaoning Provincial Committee and governor of Liaoning province, to brief you on writing a new chapter in Liaoning's full revitalization with greater responsibilities and efforts, and then answer your questions. Also present today are Mr. Wang Jian, a member of the Standing Committee of the CPC Liaoning Provincial Committee and executive vice governor of Liaoning province; Mr. Zhang Lilin, a member of the Standing Committee of the CPC Liaoning Provincial Committee and vice governor of Liaoning province; and Mr. Gao Tao, vice governor of Liaoning province.

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

Li Lecheng:

Ladies and gentlemen, good morning. First, on behalf of the CPC Liaoning Provincial Committee, the Provincial People's Government and the people of Liaoning province, I would like to express my heartfelt gratitude to you for your long-term interest in and strong support for the full revitalization of Liaoning.

General Secretary Xi Jinping has always attached great importance to the revitalization and development of Liaoning. He has visited the province multiple times to inspect progress, and presided over the symposiums on promoting the revitalization of Northeast China three times. This has helped outline a comprehensive revitalization strategy for Northeast China and Liaoning. We remain committed to his guidance, and fully, accurately and comprehensively implement the new development philosophy. We are focused on high-quality development and establishing a new development pattern as our primary strategic task. We firmly uphold our political responsibilities in safeguarding national defense, food, ecological, energy and industrial security. We are capitalizing on the crucial three-year period following the 14th Five-Year (2021-2025) Plan to vigorously drive the three-year action for full revitalization and new breakthroughs. In 2023, Liaoning's GDP grew by 5.3%, surpassing the national growth rate for the first time in a decade and reaching a total economic output of 3 trillion yuan. In the first quarter of this year, Liaoning's socioeconomic development continued its positive trend from the previous year, with the growth rate increasing to 5.4%, demonstrating enhanced resilience, vitality and creativity in high-quality development.

To thoroughly implement the strategic decisions and deployments of the Party Central Committee and accelerate the promotion of high-quality development, the CPC Liaoning Provincial Committee has set the goal of establishing "six areas" in the new era. Through relentless effort, we aim to transform Liaoning into a major supporting area for national strategies, a key source of technological innovation, a competitive hub for advanced manufacturing industries, a pioneer in the development of modern agriculture, a demonstration area for the integrated development of high-quality culture, sports and tourism, and a core region for opening-up and cooperation in Northeast Asia. Standing at a new historical starting point, we are dedicated to making these plans a practical path to enhance high-quality development, reviving the esteemed legacy of the "eldest son" of the People's Republic of China, and propeling the old industrial base to greater heights.

First, we are courageously leading in the development of new quality productive forces. This year, at the Shenyang sub-venue of the Spring Festival TV Gala, representatives of Liaoning's industrial and technological sectors, including aircraft carriers, fighter jets, industrial robots, and chips, were showcased one by one. They demonstrated Liaoning's industrial strength and technological allure to the nation. Leveraging our scientific and educational resources, we are accelerating the establishment of a regional science and technology innovation center with national influence. We are focused on four trillion-yuan-level industrial bases, in advanced equipment manufacturing, petrochemical and fine chemicals, new metallurgical materials, and high-quality specialty consumer goods industries, and continue making structural adjustments. We have been working on "three major tasks": transforming and upgrading "time-honored brands," deeply developing "original brands" and nurturing and enhancing "new brands," to build a modern industrial system at a high level. We strive to turn sci-tech innovation from the "greatest variable" into the "greatest increase," promoting high-quality development.

Second, we aim to make breakthroughs in deepening reform and opening-up. We regard optimizing the business environment as the primary project to drive high-quality development and comprehensively deepen reforms. With the improving business environment in Liaoning, state-owned enterprises, private enterprises and foreign enterprises are actively establishing themselves in the province. Last year, the total investment in key central-local cooperation projects in Liaoning was 1.3 trillion yuan. The Huajin Aramco project, witnessed by the heads of state of China and Saudi Arabia, and the accelerated construction of the Xudapu Nuclear Power Plant, jointly witnessed by the heads of state of China and Russia, exemplify our efforts. Today, Liaoning's reform and opening-up will continue unabated. We welcome guests from all corners with more substantial strategies and sincere sentiments, ensuring that all business entities and the general public can truly feel that "Northeast China has immense potential for growth."

Third, we are strengthening our advantages by adhering to green development. We are steadfastly fighting the battle against pollution, defending ecological restoration and engaging in the prolonged battle for low-carbon transformation, while coordinating the management of mountain, water, forest, farmland, grassland and desert ecosystems to make Liaoning's comprehensive ecological landscape even more splendid. The green, low-carbon and intelligent transformation of traditional industries is in full swing. This year, the proportion of installed non-fossil energy capacity will reach 50%. In the near future, clean energy will enter many more households all across Liaoning.

Fourth, we are actively working to enhance people's livelihoods and well-being. Last year, Liaoning ranked first nationally in the scale of old residential compound renovations. In the past three years, the number of pocket parks built in Liaoning ranked first in the country. We ensure that people experience small, tangible joys; we focus closely on the old and the young, and will progressively reduce the costs of education, healthcare and pensions for our citizens, enabling children to grow up healthy and the elderly to live long, healthy lives. Our cities are connected by high-speed rail, and our counties by expressways. On weekends, everyone can explore Liaoning's beauty. With the CBA playoffs underway, basketball fans can also come to Liaoning to experience the excitement of these events. In short, we treat "small matters of people's livelihoods" as "important matters," planning more projects to improve the livelihoods and well-being of the people in Liaoning, laying a solid foundation for their happiness and well-being.

That concludes my introduction. Thank you.

Chen Wenjun:

Thank you, Mr. Li. Now, the floor is open for questions. Please state the name of the media outlet you work for before asking your questions.

Economic Daily:

As Mr. Li just introduced, Liaoning's economy saw a growth rate of 5.3% last year, marking the first time in a decade that it exceeded the national average. What factors do you believe are driving this trend? And do you think Liaoning can sustain this upward trajectory?

Li Lecheng:

Thank you for your questions. Liaoning's achievements are attributed to the strong leadership and guidance of the CPC Central Committee with Comrade Xi Jinping at its core, as well as the robust participation and support from all sectors of society. The driving force behind the growth is also thanks to the implementation of the new round of comprehensive support policies for the full revitalization of Northeast China by the CPC Central Committee. We have implemented the decisions and deployments of the CPC Central Committee, and have precisely implemented a package of supporting policies such as the Guideline on Policies and Measures to Further Promote a New Breakthrough in the Full Revitalization of Northeast China in the New Era issued by the CPC Central Committee and the State Council. We have introduced a series of policies and measures in a timely manner to stabilize the economy and reinforce growth, effectively translating policy dividends into tangible results for Liaoning's revitalization and development. The growth has also benefited from Liaoning's unique comparative advantages. Liaoning has a solid foundation across its primary, secondary and tertiary sectors, particularly excelling in its comprehensive industrial system, which leads the way nationally. Liaoning covers 40 of the 41 major industrial categories in the national economy, 197 of the 207 medium-sized industrial categories, and 519 of the 666 small industrial categories. In Liaoning, a constellation of "major national equipment" has emerged, including the debuts of the first domestically-built aircraft carrier and carrier-based aircraft. Robotics, intelligent equipment and aviation equipment hold crucial positions nationwide. Liaoning has significant advantages in terms of its location, with well-developed transportation facilities, ranking high in terms of railway and road network densities, and possessing six important ports including Dalian Port, Yingkou Port and Jinzhou Port, serving as key nodes for the Belt and Road Initiative (BRI) and as key gateways connecting the Eurasian land bridge. Liaoning boasts rich scientific and educational resources, with 114 higher education institutions. The concentration of talent clusters provides an endless source of momentum for scientific and technological innovation throughout the province. Furthermore, the growth is driven by the increasingly entrepreneurial spirit among both officials and the general public across the province. We adhere to the concepts of having an open mind, staying true to principles while exploring innovations, and prioritizing business environment optimization as a key and critical battle. Starting from addressing the "small issues" that trouble and worry enterprises and the public, we are advancing institutional innovation. We have refunded taxes and fees totaling over 140 billion yuan, benefiting 11 million business entities, and continuously lowering production and operating costs for enterprises. The current situation in Liaoning is characterized by harmonious governance, shared aspirations from all levels, and forward-thinking. Across the province, there has been a noticeable surge in the flow of people, goods and capital. The people's enthusiasm, initiative and creativity have been unleashed, fostering enduring confidence and strength for comprehensive revitalization. Liaoning will undoubtedly continue its upward trend, forging a path toward high-quality development. Thank you.

China National Radio:

As we know, Liaoning is an important industrial base for the country. What considerations and arrangements does Liaoning have for developing new quality productive forces in the future?

Li Lecheng:

Thank you for your question. It's an excellent question. As I mentioned in my introduction, Liaoning is striving to take the lead in developing new quality productive forces. I will now elaborate on this aspect.

To foster new quality productive forces, we will reinforce the role of sci-tech innovation in turbocharging growth. This includes advancing the development of key laboratory clusters and basic science centers, establishing Liaoning laboratories, and promoting pre-research projects for major scientific equipment to strengthen the foundation for sci-tech innovation. We are facilitating closer collaboration among tech companies, universities and research institutions, enhancing the integration of research and industry. We are addressing challenging issues in critical areas. For example, Ansteel has developed a novel steel for extreme cold marine equipment, with three products debuting globally and six domestically, providing material support for major marine engineering projects such as the world's first ultra-deep-water drilling platform, "Blue Whale 1." We will continue striving to achieve more original and disruptive sci-tech innovations, and contributing Liaoning's strength to safeguarding the nation's industrial security.

In the pursuit of developing new quality productive forces, we will prioritize the development of the real economy. When discussing Liaoning's industrial landscape, the first thing that comes to mind might be the variety of major national achievements, such as the inaugural domestically built aircraft carrier, carrier-based aircraft, wind tunnel compressors and shield tunneling machines. Additionally, for those of us who use domestically produced smartphones, there is a high likelihood that the motor in your phone's camera originates from Liaoning. Currently, Liaoning holds the top position domestically and ranks second globally for this particular product. Aside from manufacturing numerous major national equipment, Liaoning has also cultivated many "hidden champions." We remain steadfast in our commitment to advancing the high-end upgrading of traditional industries and the industrialization of cutting-edge technologies, with a focus on areas such as digitalization and sustainability, to comprehensively boost our industrial competitiveness.

As part of our efforts to develop new quality productive forces, we will comprehensively deepen reform. Through a reform-oriented approach, we aim to efficiently gather innovative factors and conduct major technological innovation verification and demonstration applications. This will forge a seamless link between innovation and practical application, ensuring that more research outcomes can transition from theoretical concepts to tangible market products. For instance, we support large centrally administered state-owned enterprises (SOEs) in addressing emission reduction and carbon reduction technologies through open competition. This approach has resulted in a 1.9% reduction in comprehensive energy consumption per metric ton of steel, a 43.6% decrease in labor costs, and savings of millions of yuan in foreign software licensing fees. Furthermore, we will persist in our efforts to adjust and optimize the state-owned economy, empowering more promising entities to play pivotal roles in the economic landscape by confronting challenges head-on and overcoming obstacles effectively.

That is all from me. Thank you.

Beijing Youth Daily:

My question is regarding talent. In 2023, we saw Liaoning reverse the trend of 11 consecutive years of continuous net outflow of its population, achieving a net inflow of 86,000 people. What efforts has Liaoning made in attracting and retaining talent? Could you also please share the initiatives and strategies Liaoning is implementing to further retain talent? Thank you.

Li Lecheng:

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

Zhang Lilin:

Thank you for your keen observation of the full revitalization of Liaoning province, especially the development and changes of Liaoning's talent work. You mentioned the changes last year, which have not been seen in 11 years. The net population inflow was 86,000. Although this is not a huge number of people, it demonstrates a qualitative change. This change signifies our upward economic development and industrial direction. It is a concentrated reflection of our improved environment and stronger economic vitality, which fully demonstrates that the outside world's expectations of Liaoning have undergone major changes.

Talent is the primary resource. Talent is a key element in Liaoning's revitalization. In recent years, we have taken the three-year action plan for comprehensive revitalization aimed at making new breakthroughs as our general guide, fully promoting high-quality development, further stimulating innovation vitality, creating more openings, and expanding the talent pool. We have accelerated the creation of an upgraded business environment as a solid leverage, striving to create a market-oriented, law-based and international business environment to attract more investment, introduce more enterprises, and create a more attractive platform for talents. In terms of practical measures, we continue to promote the optimization of talent introduction policies. We have taken the "creating a province strong in talent" strategy as one of the 10 new breakthroughs and 50 key tasks. We continue to prioritize the development of talents, optimize the talent environment and enhance the attractiveness for talents. Last year, six new academicians to the Chinese Academy of Sciences (CAS) and the Chinese Academy of Engineering (CAE), were employed in Liaoning, bringing the provincial total to 61. Meanwhile, 4,387 full-time doctoral degree holders and personnel with senior professional titles at home and abroad were introduced, a year-on-year increase of 77%; and 401,000 college graduates were employed, a year-on-year increase of 20.8. This provided solid support in terms of talent for achieving the first phased victory in the three-year action plan of comprehensive revitalization for new breakthroughs.

We will set the goal of making Liaoning a popular choice for talent, and strive to create an international talent destination focused on Northeast Asia by attracting talented professionals, retaining them and putting them to good use. We will innovatively implement the Liaoning Talent Initiative, continue efforts to attract graduate students to remain in or come to live and work in Liaoning, and continue to deepen the reform of the talent development system and mechanism. We will ensure the implementation of policies such as providing rewards and subsidies, housing, schooling and medical services, to make Liaoning a more affectionate place so that more of talented people can settle down, feel at ease and have a promising career here.

That is all from me. Thank you.

Science and Technology Daily:

As you mentioned, Liaoning province has more than 110 universities and research institutes, as well as 61 academicians, and has abundant sci-tech resources. How will Liaoning next promote the transformation of these premium scientific and educational resources into advantages for innovative development? Thank you.

Gao Tao:

That is a very good question. The key to Liaoning's high-quality development lies in innovation-driven development. We will set the goal of creating a hub for major technological innovation, focus on creating a regional technological innovation center with national reach, and adhere to attaching importance to both sci-tech innovation and institutional innovation. We will develop new quality productive forces according to local conditions, strive to open up new areas and new arenas, and build a modern industrial system with Liaoning characteristics, as part of the efforts to transform the advantages of our scientific and educational resources into a winning force for revitalization and development. The focus will be on the following aspects:

First, we will coordinate the construction of the innovation system, and consolidate the "beams and pillars" of sci-tech innovation. We will promote the construction of Shenyang Hunnan Science and Technology City, Yinggeshi Science City in Dalian and Shenyang-Fushun Scientific and Technological Innovation Park to create a regional sci-tech innovation powerhouse. We will systematically deploy strategic sci-tech strength and strive to launch more national-level innovation platforms in Liaoning. The province has received approval to build 11 new national key laboratories. We have also established and operated four Liaoning laboratories with new systems and mechanisms to explore new models for the construction of major innovation platforms. This year, we will focus on key industrial clusters to build 20 provincial key laboratory clusters to further promote the in-depth integration of technological and industrial innovation.

Second, we will promote high-level scientific and technological self-reliance, and strengthen research on core technologies in key fields. We support leading companies to take the lead in establishing innovation consortia and implement major sci-tech projects focusing on high-end computer-numerical-control machine tools, energy storage and hydrogen energy industry. We will make breakthroughs starting from zero in a number of major scientific issues in key areas such as chemistry, materials and energy. We will resolve a number of choke points in the fields of high-end equipment, new energy and integrated circuit equipment. A large number of major equipment such as the CAP1400 (Guohe One) canned motor main pump and the AGT-110 heavy-duty gas turbine were developed in Liaoning.

Third, we will reform and innovate systems and mechanisms, and open up channels for the transformation of sci-tech achievements. We will further improve the service system for the transformation of sci-tech achievements, and promote more achievements to move from laboratory to workshop, integrate into the industrial chain, and gain access to the market. Focusing on key industrial areas, we will promote the construction of 36 pilot test bases and build a public service network for pilot test covering the entire province as an intermediate station for the transformation of sci-tech achievements. We have also actively cultivated over 400 sci-tech service institutions to carry out professional and market-oriented roadshow activities, and promoted the transformation and industrialization of sci-tech achievements. In 2023, Liaoning's technology contract turnover reached 130.83 billion yuan, a year-on-year increase of 30.8%.

Fourth, we will cultivate and strengthen sci-tech enterprises, and continue to stimulate innovation vitality. We have vigorously cultivated technology-based enterprises and enterprises that use specialized and sophisticated technologies to produce novel and unique products. We have supported enterprises to take the lead in establishing 600 substantive alliances between industries, universities and research institutes, and bringing together more than 2,000 universities, scientific research institutions and key enterprises to carry out collaborative innovation. We have also organized and carried out special events to introduce technicians into enterprises and rural areas to provide more precise services for industrial development. In 2023, our small and medium-sized sci-tech enterprises and new- and high-tech enterprises grew by 55.6% and 16.0%, respectively. There were 1,029 newly added start-up enterprises with strong innovation ability and high growth potential and gazelle enterprises, and 41 "little giant" enterprises with high growth potential, advanced technology and strong market competitive edge in Liaoning province. We also saw the birth of the first unicorn enterprise in the province. As Mr. Li mentioned, the "biggest variable" of technological innovation is being transformed into the "biggest increment" in promoting high-quality development in Liaoning. That is all from me. Thank you.

N Video from Nanfang Metropolis Daily:

Liaoning province is renowned for its abundant energy resources. However, it faces pressure to reduce carbon emissions and tackle environmental pollution, among other pressing issues. What efforts will Liaoning make to accelerate energy mix readjustment and achieve a transition toward green and low-carbon practices? Thank you.

Wang Jian:

I'll answer this question. As the journalist said, as a heavy-industry base, Liaoning province faces the challenge of accelerating the transition to green and low-carbon practices due to its significant and intense energy consumption. In recent years, we have upheld the concept that lucid waters and lush mountains are invaluable assets and have intensified efforts to coordinately promote carbon emission reduction, pollution reduction, green development expansion and economic growth, so as to make "green" a defining feature of the full revitalization of Liaoning province.

We have made substantial efforts in the following two areas:

First, we intensified our efforts to control and reduce carbon emissions at the source. Recognizing our high proportion of fossil fuel consumption, we have significantly increased the utilization of wind and solar energy in a concentrated and efficient manner, aiming to build up the province's strength in clean energy production. Currently, clean energy accounts for 49.5% of the province's total installed power generation capacity, with this share expected to exceed 50% this year. By the end of the 14th Five-Year Plan period (2021-2025), the proportion of the installed capacity of clean energy is expected to reach 56.8%. While ensuring energy supply, we are actively promoting the construction of smart power grids to better manage clean energy resources, encompassing grid connection, distribution, and control. Moreover, we have been implementing pilot projects for establishing integrated energy systems, enabling the comprehensive and coordinated arrangement of power sources, grids, loads, and energy storage to ensure effective generation, transmission, and utilization of new energy.

In order to build Liaoning province into a clean energy powerhouse, we will leverage its strengths in energy equipment and scientific research in the energy sector. This includes bolstering specific sectors, such as nuclear energy, power transmission and transformation, hydrogen energy, and energy storage. Additionally, we will implement new-type energy storage pilots for lithium-ion batteries, vanadium redox flow batteries, compressed air technologies, and sodium-ion batteries. Furthermore, we will actively promote the development of industrial chains related to hydrogen energy production, storage, transportation, and application. All these efforts will help ensure national energy security in an all-round manner.

Second, we prioritize carbon emission reduction in existing sectors. Liaoning's refining capacity ranks second nationwide, and its steel and iron production capacity ranks fourth. While our petrochemical and metallurgical industries are competitive, they are also top priorities for carbon emission reduction. We will promote large-scale equipment upgrades to accelerate technological transformations in the petrochemical, metallurgical, and other manufacturing industries, advancing toward higher-end, more intelligent, and greener development. Last year, a total of 537 key projects for ultra-low emission transformation were completed in steel and iron enterprises, and the rate of fine chemicals in the province's chemical industry reached 46.2%, an increase of 1.2 percentage points from 2022. Moreover, we have implemented rigorous market access controls and have resolved to halt the blind development of energy-intensive and high-emission projects. We have stepped up efforts to promote energy-saving renovations of buildings and facilitate the transition to green and low-carbon transportation, aiming to ensure a lighter industrial structure, a greener economic model, and higher-quality development.

That's all for my introduction. Thank you.

Thecover.cn:

Industrial revitalization serves as a prerequisite for the revitalization of Liaoning province. However, traditional heavy industries rely highly on resources and cause significant environmental damage. How will Liaoning province build a modern industrial system with its own distinctive advantages to revitalize the old industrial base? Thank you.

Li Lecheng:

Thank you for your question, and I'll provide an answer. It's widely acknowledged that the industrial sector serves as the backbone of Liaoning's economy. Therefore, revitalizing the industrial sector is a top priority for the overall revitalization of the province. In 2023, Liaoning ramped up its efforts in industrial restructuring, transformation, and upgrading, successfully achieving higher-quality growth with appropriate expansion of output. This year, the province aims to establish a modern industrial system with distinctive competitiveness, supporting its full revitalization in the new era through high-quality and new-type industrialization. We will enhance efforts in the following aspects:

We will focus on industrial restructuring. Greater efforts will be made to cultivate key industrial clusters and establish four trillion-yuan-level industrial bases. Additionally, we will advance large-scale equipment renewals and technological transformation, intensifying efforts to upgrade the equipment manufacturing industry to a more advanced and innovative level, expand downstream operations in the petrochemical and fine chemical industries, ensure cutting-edge innovations in the new metallurgical materials industry, and enable the consumer goods industry to produce more high-quality and specialized products. Meanwhile, we will develop emerging industries such as integrated circuit equipment and biomedicine while nurturing future-oriented industries such as artificial intelligence and cell therapy. Moving forward, we will advance technological innovation, making efforts to push forward industrial upgrading through innovation. We will carry out industrial foundation reengineering projects and research projects on major technologies and equipment. We will also implement the high-quality development action plan for key industrial chains in the manufacturing industry, focusing on the development of major fields, such as high-performance membranes and the titanium industry. This year, we will establish four provincial-level manufacturing innovation centers and intensify research efforts to achieve breakthroughs in core technologies in key fields, facilitating their industrialization and enhancing the resilience and competitiveness of industrial and supply chains. Additionally, we will prioritize industrial transformation and upgrading. Efforts will be made to accelerate the use of intelligent technologies to promote development. This year, we anticipate the establishment of more than 20 5G factories and over 10 "5G+industrial internet" integrated application pilot zones, along with the creation of over 100 provincial-level industrial internet platforms. We will ramp up efforts to hold a successful Global Industrial Internet Conference this year and will execute the special action plan to empower the development of small- and medium-sized enterprises (SMEs) through digitalization, promoting their digital and intelligent transformation and network-based connectivity. In addition, we will strive for green development. Efforts will be made to promote the development of the industrial sector in a green, low-carbon and circular manner. We will implement measures to peak carbon dioxide emissions in the industrial sector and facilitate the green and low-carbon transformation of key industries such as petrochemicals, steel and iron, and building materials. These efforts will help improve industrial energy efficiency and facilitate the comprehensive use of resources. We will enhance the green manufacturing system with the goal of reaching 650 provincial-level green manufacturing enterprises by the end of this year. We will intensify efforts to support enterprise development, including boosting major industrial companies' development and improving public service systems for SMEs. This year, we will promote the integrated development of small-, medium- and large-sized enterprises, aiming to establish 1,000 new innovative SMEs, 300 SMEs that use special and sophisticated technologies to produce novel and unique products, and 50 provincial-level single-product champion enterprises in the manufacturing sector. 

That's all for my introduction. Thank you.

Liaoning Radio and Television Station: 

I would like to ask a question about agriculture. We all know that Liaoning province has a wide variety of agricultural products, such as strawberries from Dandong, cherries from Dalian and river crabs from Panjin. Could you please explain how Liaoning plans to leverage these rich agricultural resources to promote high-quality agricultural development in the future? Thank you.

Wang Jian:

I will answer this question. It is often said that the land shapes its people and fosters unique characteristics. Liaoning is located in the southern part of the Northeast Plain, one of the world's three major black soil regions. The province boasts "mountains accounting for 60%, rivers and lakes accounting for 10% and arable land accounting for 30% of its territory," with a complete ecosystem including mountains, rivers, lakes, oceans, wetlands, and more. The unique natural resources and climate conditions have endowed Liaoning with distinct advantages in agriculture. The province produces a wide range of agricultural products with superior quality and has many well-known geographical indication (GI) products. We aim to become a pioneer in the development of large-scale modern agriculture, and to accelerate the construction of a strong agricultural province and a leading province in the food industry.

First, we must firmly shoulder the political responsibility of guaranteeing national food security. Liaoning is one of the 13 major grain-producing provinces in China, with its grain yield per unit area ranking among the top. Last year, our total grain output reached 25.64 million metric tons, reaching a new historic high. To increase grain production capacity, we will implement actions to enhance capacity, consolidate the foundations of food security, strictly adhere to the red line for protecting arable land, increase investment, raise standards and strive to become a model province for the construction of high-standard cropland. We will also implement projects for the protection of black soil according to different types, converting more arable land into "stable-yield fields" and "high-yield fields." Seeds are the "chips" of agriculture, and we will fully leverage our advantages in agricultural science and technology to carry out actions for the revitalization of the seed industry, providing a guarantee of seed sources for food security.

Second, we will actively adopt an all-encompassing approach to food and build a diversified food supply system, transforming agriculture into an inclusive industry. The distinctive advantages of Liaoning's agriculture are obvious. As mentioned earlier by the journalist, strawberries in Dandong, cherries in Dalian and river crabs in Panjin are all well-known to everyone. In addition, we have many other specialty agricultural products. For example, our offshore resources are abundant with the Liaodong Bay and Haiyang Island being two major traditional fishing grounds, ranking fourth in the country in terms of marine aquaculture output. Additionally, fruits in southern Liaoning, miscellaneous grains in western Liaoning and the "six treasures of traditional Chinese medicine" in eastern Liaoning are also renowned nationwide. Furthermore, Liaoning's greenhouse vegetables achieve year-round production and sales, ensuring supply throughout the seasons. We will focus on developing superior varieties, improving quality and building brands, further refining quality and expanding the scale of specialty agricultural products, allowing people to taste more Liaoning's specialties and flavors.

We will also strive to extend the industrial chain of agriculture and increase its added value. We will cultivate a group of leading enterprises, accelerate the construction of 100-billion-yuan industrial clusters in livestock and poultry, grains and oils, aquaculture, and fruits and vegetables, forming a development pattern in the food industry with leading enterprises and thriving clusters. We will make good use of Liaoning's unique advantages in agriculture, achieving industrial prosperity, agricultural strength and rural prosperity. Thank you.

People's Daily: 

Just now, it was mentioned that Liaoning has carried out a large amount of effective work in areas such as providing services for the elderly and children as well as renovating old communities. Could you please tell us what other efforts Liaoning has made to continuously improve people's well-being? What measures will be taken in the future? Thank you.

Zhang Lilin:

Thank you for your concern toward people's livelihoods. Benefiting the people is an eternal theme for us. In recent years, we have focused on addressing the pressing difficulties and problems that concerned the people most, releasing practical measures, doing practical things and seeking solid outcomes. We have issued the "Implementation of Measures on Further Guaranteeing and Improving People's Livelihoods in the Three-Year Action Plan for Comprehensive Revitalization of Liaoning," and formulated a list of practical matters for the people, striving to ensure that the people feel more fulfilled, have a more sustainable sense of happiness and experience a greater sense of safety. In 2023, the proportion of general public budget expenditures used for people's livelihoods in the province reached 76.5%. In the future, we will further guarantee and improve people's livelihoods in the pursuit of high-quality development, making the lives of Liaoning’s citizens better day by day.

First, we will make people feel more at ease with housing. We will make great efforts to build government-subsidized housing, implement urban renewal actions and create more high-quality living spaces. The province will renovate another 4,600 kilometers of old pipe networks, including 300 kilometers of gas pipelines, 1,500 kilometers of water supply pipelines, 1,500 kilometers of heating pipelines and 1,300 kilometers of drainage pipelines. We will continue to renovate 700 old communities and 4,463 buildings, covering a total construction area of 18 million square meters and benefiting 256,000 households, making life more comfortable for the general public.

Second, we will strive to make people more satisfied with education. We will accelerate the formation of a high-quality and balanced basic public education system. The proportion of public-interest kindergartens and regular senior high schools with high quality and distinctive features in the province have reached 89.9% and 56.4% respectively. We will ensure there are special needs education resource centers in all city-level administrative areas, accelerate the development of high-quality, well-balanced and integrated compulsory education in both urban and rural areas, and expand the scale of regular senior high schools with high quality and distinctive features. Thus, we will make students and parents more satisfied with education. 

Third, we will try to make people more satisfied with employment. We will carry out a series of actions to guarantee and promote employment, so as to advance revitalization. In 2024, Liaoning plans to release policy dividends in the field of human resources and social security and issue loans for enterprises to bolster employment totaling more than seven billion yuan, helping companies fill more than 700,000 vacancies. We will shift from "being able to find jobs" and "finding jobs quickly" to "finding good jobs" and "being content with one’s job," helping job hunters attain full employment.

Fourth, we aim to make public health care services more caring. Upholding the principle of medical professionals providing the necessary services for people's health, we are advancing the expansion of high-quality medical resources and striving for a balance in regional distribution. In 2024, we will add 100 key clinical specialties at the provincial, city and county levels. We are creating warmer health care services by optimizing outpatient processes throughout the pre-diagnosis, diagnosis and post-diagnosis stages. We are also promoting multidisciplinary diagnosis and treatment models, flexible scheduling of outpatient appointments, and establishing one-stop service centers. Our goal is to ensure that the people have reliable medical support to improve their lives and health.

Fifth, we aim to help the elderly feel greater reassurance. We will steadily increase the level of social insurance benefits and implement a comprehensive social security coverage plan. We will strengthen the construction of urban and rural community elderly care service networks, focusing on providing elderly care services on their doorstep. We are committed to creating "15-minute elderly care service circles" that ensure convenient access to services. Additionally, we will carry out senior-friendly transformations for 15,000 households with elderly people in special difficulties, further enhancing the peace of mind for the elderly.

That concludes my introduction. Thank you.

CCTV:

Earlier, Mr. Li mentioned that optimizing the business environment should be regarded as the "first move" and "key battle" in comprehensive revitalization. What are your considerations for the next steps in building the business environment?

Li Lecheng:

Thank you for your question. This matter is of great concern to various sectors of society. We often say that businesses create wealth, while the government creates the environment. We consider optimizing the business environment as the "first move" and "key battle" in the three-year action plan for comprehensive revitalization. We will continue to deepen reforms in key areas, improve government services, focus on benefiting enterprises and the people, and strive to explore a new path that is in line with the reality of Liaoning province and has its own characteristics.

To improve the business environment, we have started by focusing on the government itself. We firmly believe that integrity and the rule of law are the cornerstones of optimizing the business environment. We have initiated special campaigns to ensure government compliance and commitment, emphasizing that new officials must address old issues. We have made significant efforts to address instances of government misconduct, and we have overseen the resolution of nearly 17,000 issues related to the business environment. As a result, market confidence, industry confidence and social confidence have all significantly improved.

Enabling the public to handle their affairs without relying on personal connections is like giving them a reassuring dose of fairness and justice. We have initiated the reform to eradicate favoritism in handling affairs, promoting a campaign in Liaoning of "No Favoritism, No Personal Gain." Throughout the province, more than 900 beneficial policies have been implemented that can instantly be enjoyed without the need for application, benefiting over 11 million enterprises and allowing business entities to fully reap the benefits of these policy dividends.

We are striving to ensure that good things are done well and done quickly. We are actively promoting a direct reporting system between the provincial authorities and counties for land requisition and modularized approvals, significantly reducing the time required for approval. By reducing the tax and fee burden on enterprises, last year we achieved over 40 billion yuan in additional tax and fee reductions, exemptions, refunds and deferred payments provincewide. We have implemented a "one-stop" approach for 35 high-frequency scenarios, resulting in a reduction of average processing time by 62%. This year, we will further expand this approach to include 48 scenarios.

Telephone calls from ordinary people serve as the best opportunity for us to optimize the business environment. Currently, the 12345 hotline has been developed into the centralized customer service for government affairs across the entire province. By addressing specific small issues, scenarios and initial signs of improvement, we are promoting targeted rectification of persistent problems in the business environment. Last year, the hotline received a total of 12.55 million requests, with a completion rate of 99%, effectively addressing various demands.

How is the business environment in Liaoning? Let me provide you with some data. Last year, the business vitality of enterprises in Liaoning increased to 66.7%, showing year-on-year growth of 3.4 percentage points. The in-place investment increased by 16% compared to the previous year. Both domestic and foreign enterprises have shown their trust in the province's business environment by actively engaging and investing. Entrepreneurs can pursue their dreams with confidence while we stand as their strongest support and best partner.

We sincerely welcome friends from the media to visit Liaoning, explore its wonders, and closely observe the development of our business environment. We also welcome your valuable feedback. Thank you.

Phoenix Satellite Television:

Cities like Shenyang and Dalian have always been popular tourist destinations. Additionally, places like the wetland park in Panjin have also garnered significant attention. How does Liaoning plan to turn this widespread attention into a solid foundation for the long-term development of its cultural tourism industry, attracting people to visit and also return? Thank you.

Gao Tao:

Thank you for your interest in Liaoning's cultural tourism sector. Liaoning province boasts beautiful natural landscape, rich cultural heritage and warm, genuine people. We have a diverse range of mountains, rivers, forests, fields, lakes, grasslands and deserts, each with their own unique beauty. The historical legacies of the Hongshan culture, San-Yan culture, Liao and Jin dynasties culture, and the early Qing dynasty culture have been preserved over time. Moreover, the people of Liaoning province are known for their hospitality and kindness. We are working tirelessly to present the most beautiful aspects of Liaoning to visitors from both home and abroad.

At the end of last year, the National Cultural Heritage Administration (NCHA) announced the latest findings in its research project to trace the origins of Chinese civilization, confirming that the Niuheliang Site of the Hongshan culture represents the first stage of ancient Chinese civilization. This discovery has attracted a large number of tourists to visit the city of Chaoyang in Liaoning, seeking to explore its ancient wonders.

During this year's Spring Festival holiday, visitors flocked to Liaoning to revel in ice and snow activities and hot spring relaxation, attracted by its combination of accessibility, moderate temperatures, and affordability. Liaoning's abundance of ski resorts, coupled with its milder winter temperatures, has made the province a consistently sought-after destination for ice and snow tourism. In Shenyang, visitors flocked to the Xiaoheyan morning market to experience the quintessence of affordability and made a stop at the internet-famous Shenyangzhanzhan subway station to partake in the "Listen to Advice Tourism" trend (The Shenyang Bureau of Culture, Tourism, Radio and Television reverted the station's name back to its original version after heeding the advice of internet users). Additionally, visitors explored the historical relics of the Qing dynasty (1616-1911) at the Shenyang Imperial Palace, one of the nation's two remaining ancient imperial palace complexes. During the Spring Festival holiday, Liaoning received a total of 40.866 million visitors, a year-on-year increase of 299.6%, generating a total revenue of 41.27 billion yuan, a year-on-year increase of 572.7%.

This trend continues to gain momentum. This spring, Liaoning has witnessed a resurgence in the popularity of flower and bird appreciation tours. Visitors have been flocking to the province to admire the stunning spring blossoms and picturesque landscapes, indulge in distinctive local cuisines, and immerse themselves in folk culture. Currently, Gangdong 5th Street in Dalian has emerged as a bustling new tourist destination.

Moving forward, we will continuously refine our tourism offerings and enrich the cultural depth of ice and snow, oceanic, borderland, and game-based experiences. By incorporating elements of leisure travel, we will vigorously develop ice and snow hot spring tours, eco-friendly residential getaways, marine and island excursions, revolutionary legacy study journeys, and distinctive culinary explorations, among others. Our aim is to introduce a wider range of high-quality cultural, sports, and tourism-integrated products that not only cater to market demand but also embody rich regional characteristics.

By capitalizing on the opportunity to host China's 15th National Winter Games and embracing the concept of "traveling with sports events," we will enhance and diversify our cultural and sports tourism experiences. This initiative aims to deeply ingrain Liaoning's tourism slogan, "Mountains and seas bear affection; Liaoning beckons with heart and harmony," within the hearts of visitors and establish the province as a pioneering region for the high-quality, integrated development of cultural and sports tourism.

That's all for my answer. Thank you.

Chen Wenjun:

The last question, please.

China Daily:

This year's Summer Davos meeting will take place in Dalian, Liaoning. As an important platform for enhancing international exchange and cooperation, what are the unique aspects of this year's event? Positioned as a hub in Northeast Asia, what steps will Liaoning take next to pioneer new opening-up frontiers? Thank you.

Li Lecheng:

Thanks for your interest in this regard. This year's Summer Davos Forum will gather more than 1,500 guests from across the globe in Dalian, marking a historical milestone in both scale and level of attendees. The hosting of this event in Liaoning aligns perfectly with the province's strategy of positioning itself as an opening-up and cooperation hub in Northeast Asia. Meanwhile, the theme of this year's forum, "Next Frontiers for Growth," mirrors Liaoning's aim of pioneering new frontiers for opening-up.

Situated at the core of Northeast Asia, Liaoning boasts both coastal and border regions. With its extensive coastline, favorable port resources, and advantageous location near Japan, South Korea, Russia and Mongolia, the province also enjoys a strong industrial foundation with comprehensive industrial categories and a wealth of innovative resources driven by the concentration of scientific and educational talents. These factors make Liaoning one of the provinces with the richest opening-up traditions, the greatest opening-up potential, and the highest opening-up vitality. We will fully leverage our geographical, industrial, and production factor resources, deeply integrate into Belt and Road cooperation, and advance opening-up to the north and east. We will conduct targeted investment attraction efforts, actively promote the development of foreign trade and economic ties, and deliver higher-quality services to foreign-funded and foreign-trade enterprises. We will also focus on Fortune Global 500 enterprises and prominent domestic and international corporations to secure a range of high-caliber, large-scale projects, as well as ventures that harness cutting-edge technologies to create novel and distinctive products. Additionally, we will endeavor to grow foreign trade and fully leverage domestic and international exhibitions to aid enterprises in expanding their global reach. We will cultivate new business forms and models of foreign trade, and steadily expand the scale and improve the quality in terms of exporting used cars and the "new three," namely photovoltaics, lithium-ion batteries and new energy vehicles. We will fully explore new growth drivers such as cross-border e-commerce, overseas warehousing, transit trade, and bonded trade. Moreover, we will accelerate the construction of a sea-land corridor in northeast China, work to establish the China-Europe Railway Express (Shenyang) Cargo Consolidation Hub, and steadily improve the quality and scale of China-Europe Railway Express operations, thus advancing the quality and effectiveness of sea-rail intermodal transportation. We will continue to enhance various opening-up platforms by implementing four strategies: upgrading the pilot free trade zone, driving innovation and quality improvement in the economic and technological development zone, empowering the special customs regulation zone, and fostering synergistic development among different platforms.

When adopting a global perspective, nothing escapes our sight. By strategically planning our opening-up with a worldwide perspective, synchronously driving the development of investment, consumption, and export, advocating competitive growth among state-owned enterprises, private businesses, and foreign companies, and expediting the attraction of capital, technology, and talent, Liaoning will undoubtedly set forth on a more expansive path towards revitalization and development. In closing, I would like to take this opportunity, through the media in attendance today, to extend an invitation to businesspeople from both China and around the world to come to Liaoning. Let's join hands to build Liaoning into a hub of opening-up and cooperation in Northeast Asia, and share the valuable opportunities presented by northeast China's all-round revitalization. Thank you.

Chen Wenjun:

Thank you, Mr. Li. Thanks to the other speakers and friends from the media. Today's press conference is hereby concluded. Goodbye.

Translated and edited by Wang Yiming, Wang Qian, Qin Qi, Liu Qiang, Yan Bin, Yuan Fang, Gong Yingchun, Zhang Junmian, Mi Xingang, Huang Shan, Liu Caiyi, Zhou Jing, Xu Xiaoxuan, 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 Yuting, deputy secretary of the Communist Party of China (CPC) Jilin Provincial Committee and governor of Jilin province

Mr. Cai Dong, a member of the Standing Committee of the CPC Jilin Provincial Committee and executive vice governor of Jilin province

Mr. Li Guoqiang, vice governor of Jilin province

Ms. Yang Andi, vice governor of Jilin province

Chairperson:

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

Date:

April 22, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 10th press conference in the series "Promoting High-Quality Development." Today, we are very pleased to be joined by Mr. Hu Yuting, deputy secretary of the Communist Party of China (CPC) Jilin Provincial Committee and governor of Jilin province, who will brief you on striving for new breakthroughs to revitalize Jilin in the new era and then take your questions. Also present today are Mr. Cai Dong, a member of the Standing Committee of the CPC Jilin Provincial Committee and executive vice governor of Jilin province, as well as two vice governors of the province, Mr. Li Guoqiang and Ms. Yang Andi.

Now, I'll give the floor to Mr. Hu Yuting.

Hu Yuting:

Ladies and gentlemen, friends from the media, good morning. I would like to start by extending my deep appreciation for your long-standing interest in and support for the revitalization and development of Jilin. It is also my pleasure to have the opportunity to brief you on this topic.

General Secretary Xi Jinping holds high expectations for the revitalization and development of Jilin. Since the 18th CPC National Congress, he has conducted three inspection tours in the province and put forward the important requirements for us to "shoulder new responsibilities, achieve new breakthroughs and make new accomplishments." This has drawn up a blueprint for Jilin's comprehensive revitalization, and injected strong impetus into the endeavor.

Bearing in mind such expectations, we have resolutely shouldered the important mission of safeguarding the nation's security in food, industry, energy, eco-system and national defense, ushering in a phase of accelerated revitalization and development. In 2023, Jilin's GDP saw year-on-year growth of 6.3%, outpacing the national GDP by 1.1 percentage points. In the first quarter of this year, the province's GDP growth rate hit 6.5%, again surpassing the national economic growth by 1.2 percentage points. With the growth rates of its multiple economic indicators ranking among the top in the country, Jilin has maintained a sound momentum of achieving stable growth while making further progress.

Jilin is not only a key industrial base in the country, but also a major farming province and one rich in ecological resources. Its industrialization started early, and it served as the cradle of the country's auto, chemical and film industries. Jilin has achieved numerous unprecedented national milestones and made key historic contributions to the nation.

On the new journey in the new era, we have kept this historical heritage in mind, carried forward our diligent traditions, and spared no effort to shore up weak links and embrace new challenges. We are poised to achieve new breakthroughs in Jilin's comprehensive revitalization.

Jilin's biggest advantage lies in its agricultural sector. Located within one of the world's three major chernozem soil regions, Jilin leads the nation in large-scale farming and agricultural mechanization. Its annual grain output has exceeded 40 billion kilograms for three consecutive years, and its pioneering role in advancing modern agriculture has been further consolidated.

Jilin's primary strength stems from its manufacturing industry. "Made-in-Jilin" products like vehicles from FAW Group , high-speed trains from CRRC Changchun Railway Vehicles, and satellites from Chang Guang Satellite Technology are well-recognized across the country. Notably, the world's first hydrogen-powered urban train completed its test run here. The Jilin-1 satellites have become the world's largest sub-meter-level commercial remote sensing satellite constellation.

Jilin's innovation strength comes from its edge in science, education and humanities. It is home to 66 colleges and universities, 106 research institutes, and numerous national strategic sci-tech facilities. It ranks fifth nationwide in terms of the scientific research material conditions index , and boasts huge potential for innovation-driven development.

Jilin has made "green" a defining feature of its ecological environment. It boasts not only lucid waters and lush mountains, but also abundant ice and snow resources. Jilin ranks top in the country in the comprehensive evaluation of forest resources. In addition, it is rich in wind and photovoltaic power, and also enjoys a vast expanse of land, providing a unique advantage for the development of new energy industries.

On the new journey in the new era, we will seize the opportunities and work to the best of our abilities. There is much that we can do in achieving new breakthroughs in Jilin's comprehensive revitalization. Specifically, we aim to make breakthroughs in the following fields:

First, we will spur industrial innovation by making sci-tech innovations, and develop new quality productive forces in accordance with Jilin's local conditions. We will implement a sci-tech innovation mechanism, making organized efforts to achieve sci-tech breakthroughs and foster their applications. By doing so, we will address the needs of the industrial sector, further pool strength to make sci-tech breakthroughs in this regard, and expedite their application. We will ramp up efforts to develop the "four key clusters": big agriculture , big equipment , big tourism and big data. We will bolster the "six emerging industries": new energy, new materials, new medicine, new healthcare, new services and new e-commerce. In addition, we will enhance the construction of "new facilities in four categories": new infrastructure, new environment, new lifestyle and new consumption pattern. With such efforts, we aim to develop a high-quality development system and a high-level living system.

Second, we will focus on the development of modern agriculture and expedite efforts to enhance Jilin's agricultural capabilities. We will prioritize the nation's food security and adopt an all-encompassing approach to agriculture and food . In accordance with Jilin's advantages in natural resources, we will strengthen chernozem soil protection and improve saline-alkali land. In addition, we will promote the application of smart agricultural machinery and bio-breeding technologies, foster the production of green and organic food, and develop a modern agriculture industry with a value surpassing the 1-trillion-yuan ($138 billion) mark.

Third, we prioritize ecological progress, insist on green development, and pioneer in building a beautiful China. We will view lush mountains and lucid waters as invaluable assets and firmly safeguard ecological security, better preserving the eco-environment by developing eco-tourism and vice versa. We plan to create world-class ice and snow brands and tourism attractions for both winter and summer. By 2027, tourism revenue is expected to exceed 1 trillion yuan. We will proactively develop the clean energy industry and accelerate efforts to forge a "green hydrogen+" industrial cluster with global competitiveness.

Fourth, we have comprehensively deepened reforms, and elevated the level of opening-up and cooperation. We will work unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector. We will empower development and increase efficiency by lifting restrictions and unleashing people's ingenuity. While deepening and improving reforms of state-owned enterprises (SOEs), we will also vigorously develop the private sector. We will continue to improve the business environment, increasingly conduct approval procedures online, and make "getting things done without having to rely on personal connections" the standard practice. We aim to deeply involve ourselves in the Belt and Road Initiative and build Jilin into an important gateway for China's opening-up in the north and a hub for cooperation among northeastern Asian countries.

Fifth, we are promoting the high-quality development of the population and enhancing talent support. We will comprehensively improve the quality of the population, create more favorable conditions for innovation and entrepreneurship, offer more support for talent, and expand employment opportunities in various industries. Our goal is to attract more than 60% of college graduates to stay in Jilin for work, thus cementing the positive trend of a net inflow of talent and population into the province.

We have experienced a lot and are now facing a new horizon. It's time for Jilin to realize comprehensive revitalization in the new era. This is highly anticipated. We welcome our friends from the media to visit Jilin again and continue to support this northeastern province. 

That's all from me for now. Thank you all.

Shou Xiaoli:

Thank you, Mr. Hu. Now, the floor is open for questions. Please identify your news agency before raising your questions.

CNR:

I have noticed that Jilin's total grain output has exceeded 40 billion kilograms for three years in a row. So, as an important province for agriculture and grain production, how does Jilin plan to fulfill its role in firmly safeguarding food security in China? Thank you.

Hu Yuting:

Thank you for paying attention to Jilin's agricultural development. Jilin has been a frontrunner in terms of grain production in China. It is located in one of the three major black soil areas in the world and is renowned for its advantageous conditions for cultivating corn and rice. It is also endowed with vast plains and boundless stretches of land for developing large-scale modern agriculture. 

You just mentioned that Jilin's total grain output has exceeded 40 billion kilograms for three consecutive years. Last year, Jilin's total grain output reached 41.865 billion kilograms, rising to the fourth position in the country. The per-unit output ranked first among major grain-producing provinces. More than 90% of the grain output was commercialized, and more than 50% of the grain output was allocated outside the province. Under the new initiatives of increasing grain production capacity by 50 million metric tons, Jilin is assigned to accomplish one-fifth of the total increase, or 10 billion kilograms. As a result, Chinese citizens will be able to enjoy more grain produced in Jilin.

These are the due responsibilities we need to shoulder to realize the goal of continuing to safeguard national food security. The task is weighty, and the solution lies in fostering new quality productive forces in agriculture and in raising total factor productivity through the following measures:

First, we will increase fertile farmland. Jilin has nearly 100 million mu (6.67 million hectares) of black soil land, often referred to as the "giant panda of farmland." We have leveraged our scientific and technological strengths to better protect and utilize black soil, and ensure grain output. We have promoted new, eco-friendly farming methods, such as returning plant stalks to fields and implementing no-tillage planting. Additionally, we have renovated and improved medium- and low-yield fields. This year, we aim to create 666,667 hectares of high-standard croplands, striving to be the first to upgrade all basic croplands to high-standard ones. We will also develop saline and alkaline lands as backup resources to expand agricultural production, expecting a 133,333-hectare increase in fields. We aim to add 4.3 billion kilograms of grain output by sustainably utilizing farmlands to enhance grain production capacity.

Second, we will cultivate quality seeds. Seeds are dubbed as the "chips" of agriculture. We have actively promoted the revitalization of the seed industry and established breeding platforms for key crops such as corn, rice and soybeans. We advocate for the integration of seed breeding, propagation and popularization to expand the use of quality seeds. Thanks to the use of fine seeds, per-unit yields have increased, resulting in a 3 billion-kilogram output increase.

Third, we will utilize high-quality equipment. The overall mechanization rate in crop production in Jilin has reached 94%, which is 20 percentage points higher than the national level. Moving forward, we will focus on developing high-end, smart agricultural machinery, including powerful equipment suitable for flatlands, small-sized machinery for hilly terrain, and innovative solutions that address market gaps, particularly unmanned ones. Mechanization improves efficiency and reduces losses, resulting in a 150 million-kilogram increase in output.

Fourth, we will adopt useful measures. Fertigation and compact planting enable a 30% increase in output per mu (0.067 hectares). We promote commercial agricultural services, provide support to new types of agribusinesses, and expand large-scale, intensive, and standardized operations. Through the utilization of new technologies and services, output has increased by 3.75 billion kilograms.

Lastly, we will develop smart agriculture. We have established digital platforms for agricultural development, promoted soil testing and formulated fertilization plans, deciphered the secrets of soil composition, and expanded the application scenarios of the Jilin-1 satellite to include soil moisture content monitoring, early warning of crop diseases and pests, and meteorological services. This will empower large-scale modern agriculture with smart technologies.

We are confident in maintaining a strong growth momentum of grain production. The province's expected grain output in 2024 is 44 billion kilograms and that of 2030 is anticipated to exceed 50 billion kilograms. Thank you.

CRNTT:

In the first quarter of this year, the value-added industrial output of Jilin's industrial enterprises above designated size witnessed double-digit growth, as did the automobile manufacturing industry. As an old industrial base, what factors support Jilin's good momentum for long-term development of industrial economy? What measures will the local authority take to promote new industrialization? Thank you.

Hu Yuting:

Jilin is an important industrial base in the country. You are very familiar with industrial issues. Mr. Li will answer your questions.

Li Guoqiang:

Thank you for your concern about Jilin's industrial economy. The foundation, strength, and potential of the province's comprehensive revitalization lie within its industrial sector. In the first quarter of this year, we achieved a remarkable 10.4 percent growth in industrial added value, building upon last year's 6.8 percent. China's leading automaker, FAW Group Co., Ltd., located in Jilin, ranked first in production and sales nationwide. Jilin's success mainly attributed to its pursuit of a new path of industrialization, focusing on three key areas.

First, we have facilitated intelligent industrial transformation and digitalization, which are seen as essential for the future of industrialization. With the backing of financial institutions, we spend hundreds of millions of yuan each year on intellectualization and digitalization. We have implemented a series of policies to upgrade every company with digital and smart technologies in an orderly manner, whether they have single production lines or entire production plants. We aim to complete a round of intellectual and digital upgrading for all of Jilin's industrial enterprises above designated size within three years.

Second, we have promoted the formation of industrial clusters, which is a crucial measure to advance new industrialization and make industrial and supply chains more secure. We have fostered 10 major industrial clusters in the province, including a trillion-yuan automotive industry cluster, a 100 billion yuan carbon fiber industry cluster, a corn-based bioproduct industry cluster and seven industrial clusters with the output of over 100 billion yuan. By 2030, the output value of these clusters is expected to account for 85% of the total industrial output.

Third, we have developed hubs for high-end industries, which is key to grasping the initiative of future-oriented industries and supporting new industrialization. Although Jilin's future-oriented industries are still in their initial stage, some major enterprises have already made forward-thinking plans. For example, in the field of intelligent connected vehicles, the FAW Group has completed its hardware design for a high-performance supercomputing platform, which can meet the functional needs of advanced automatic driving. The group has also completed domestic production of the whole industrial chain in the high-precision positioning system for automobiles. In the field of high-speed rail transportation, the CRRC Changchun Railway Vehicles Co., Ltd . developed a hydrogen-powered urban commuter train with a maximum range of over 1,000 kilometers on a single charge and accelerated the manufacturing of high-speed maglev train at a speed of 600 kilometers per hour. In the field of satellite applications, the number of Jilin-1 satellites in orbit increased to 108, making it the largest remote-sensing satellite constellation operating at sub-meter resolution in the world. In the field of ultra-HD displays, the Changchun Institute of Optics, Fine Mechanics and Physics (CIOMP) under the Chinese Academy of Sciences (CAS) can produce high-quality full-color LED displays using its unique technology of single full-color display chips. Cedar Electronics, one of Jilin's specialized and sophisticated enterprises that produce new and unique products , developed 75-inch to 165-inch ultra-HD direct digital TVs, filling a domestic gap in this area.

Next, we will accelerate the development of a modern industrial system and embark on a road to new industrialization featuring Jilin's characteristics and advantages. Thank you.

People's Daily Online:

Recently, Jilin's restaurants for the elderly have attracted wide attention from the public. Could you please introduce the progress of the program? What other measures will Jilin take to address livelihood issues? Thank you.

Cai Dong:

Thank you for your attention on this important issue. There are around 6 million elderly people in our province, accounting for about a quarter of the total population. Meeting their dining needs and improving relevant services is a significant matter related to people's livelihoods and well-being. We have already built a batch of restaurants for the elderly, effectively providing them convenience, resulting in positive feedback. This year, we will build and renovate 1,300 restaurants for the elderly in the province to ensure every community has at least two establishments and each township has at least one. Furthermore, we aim to achieve full coverage of meal services for the elderly in urban and rural communities with relatively concentrated aging populations and higher demands within about three years.

The elderly dining service epitomizes Jilin's work to improve people's livelihoods. We regard the small matters in people's lives as important issues, strive to address them with dedication and sincerity, and truly respond to the needs and aspirations of the people. For example, in terms of employment, we are fully committed to promoting employment for key groups such as college graduates and migrant workers. In 2023, the proportion of college graduates staying in the province to work exceeded 60%, with many young people from other provinces choosing to pursue careers here. Additionally, the proportion of migrant workers employed within the province has increased from approximately 60% in the past to around 80% currently. Another example is heating supply, which is a matter of great concern to the people. We have made significant efforts to address related issues. On one hand, we have established a digital supervision platform to monitor the outlet temperature and operating curves of heating ports in real-time. On the other hand, we have established a reward and punishment mechanism for heating-supply enterprises, resolutely removing those receiving many complaints and providing poor service from the market to ensure that the people can enjoy a warm winter. Furthermore, in healthcare, we have implemented the policy of "only one registration for each medical visit," which we will pilot this year in over 100 major hospitals. At the same time, we are vigorously promoting the delivery of high-quality medical resources to township hospitals to make healthcare access more convenient.

This year, our province will focus on seven areas: employment promotion, social security, education benefits, health care, elderly care, cultural and sports activities, and public services. We will implement 25 livelihood projects, paying particular attention to major and difficult issues of widespread concern, and delivering practical benefits that enhance people's sense of fulfillment. For example, we will upgrade the valves and pipes for users of bottled liquefied gas, support the construction of "vibrant playgrounds" in primary and secondary schools, and reform passenger transport routes to make them similar to the model for buses.

Our financial investment in livelihood projects has been increasing every year, with over 70% of new finances being allocated to safeguard people's livelihoods. Our goal is to quickly address shortcomings, secure the basic livelihoods of the people, and align high-quality development with the people's interests, ensuring that the fruits of development benefit a wider range of people. Thank you.

Science and Technology Daily:

We all know that the development of new energy is progressing rapidly nationwide, and Jilin province has abundant wind and solar power resources. Could you please elaborate on how Jilin province will transform its advantages in wind and solar power resources into advantages in new energy development? What are the key measures? Thank you.

Hu Yuting:

Thank you for your question. The advantages of new energy in Jilin province can be summarized in three sentences.

First, "Jilin possesses unlimited wind and solar power resources." Jilin province has hundreds of millions of kilowatts of potential development capacity for wind and solar power resources, offering vast development space. The average utilization hours for wind energy are close to 3,300 hours, and the average utilization hours for solar energy are nearly 3,000 hours, equivalent to nine hours of power generation potential per day.

Second, "Jilin has strengths in wind and solar power." Jilin province enjoys strong advantages in terms of its location for developing new energy, being close to domestic industrial hubs such as the three northeastern provinces and the Beijing-Tianjin-Hebei region. Our industrial development has a solid foundation, with strong demand for greening traditional manufacturing. With vast and flat land, abundant unused land for project construction, comprehensive transportation infrastructure, and abundant water and biomass resources, Jilin possesses complete conditions for developing a new energy industry chain.

Third, "Jilin has established the groundwork for hydrogen power." We are utilizing wind and solar power resources, straw resources, and river and lake resources as raw materials to vigorously promote the transformation of green electricity into forms of energy such as green hydrogen, green ammonia, green methyl alcohol, green aviation fuel and green materials. Our goal is to establish a hydrogen-based industrial cluster, with the aim of becoming "China's hydrogen capital." Currently, more than 20 leading companies in related industries have settled in Jilin, and over 10 ten-billion-yuan "green hydrogen plus" projects have been launched.

Of course, to transform the advantages in wind and solar power resources into development advantages, we need to innovate our thinking and strive to find a path suitable for making transformative advancements in new energy in Jilin province.

First, policy breakthroughs are required. We encourage leading enterprises or consortia to serve as the main operators of green power industrial parks. We have established a series of supporting policies in terms of electricity pricing, power transactions, project land use and project approval, which are highly operable and valuable.

Second, innovative models are required. We adopt energy supply models such as incremental distribution networks, local power grids, direct supply of new energy and self-contained loads, which are collectively known as "green power plus consumption." With these models, 80% of Jilin's green power can achieve local transformation, thus solving the problem of grid consumption. For example, we support distributed self-generation and self-consumption for flexible electricity use and manufacturing projects such as "hydrogen-based green energy." For modern industries that consume high amounts of energy, such as carbon fiber and new materials, we maximize the use of green power through reasonable ratios of wind and solar power or direct supply models.

Third, expansion of the industrial ecosystem is required. We are building several 10-million-kilowatt-level green power industrial parks and a batch of ten-billion-yuan hydrogen-based green energy industrial parks. We are promoting the integrated development of modern energy storage and other related green industries, while expanding application scenarios and enlarging the industrial scale of hydrogen-fueled vehicles, hydrogen-powered trains and a series of other products to create a complete "green hydrogen plus" industrial chain.

In general, green electricity is a valuable resource in Jilin, and bound to be a powerful means for us to foster emerging industries and future industries. Thank you.

Yicai:

Since last year, the State-owned Assets Supervision and Administration Commission of the State Council has been advancing a new round of initiatives to deepen and enhance SOE reform. As a major hub for SOEs, what measures has Jilin taken to deepen SOE reform? Thank you.

Hu Yuting:

Thank you for your interest in the development and reform of Jilin's SOEs. For Jilin to achieve a breakthrough in revitalization, SOEs must take the lead. In recent years, Jilin has made steady progress in SOE reform. With enterprises operating steadily and soundly, the quality and efficiency of development are consistently rising. However, when measured against the requirements of the central government's new round of SOE reforms and the goal of high-quality development, we still have a considerable amount of work to do. We are facing the issues head-on and are vigorously advancing our action plan to deepen and enhance SOE reform in order to strengthen core functions and improve the core competitiveness of enterprises. We aim to use two to three years to increase the assets of Jilin's provincial SOEs by 50%, doubling their revenue and profits and revitalizing Jilin's SOEs to restore their former strength.

First, we are promoting strategic restructuring and specialized integration of SOEs.. We are accelerating channeling stated-owned capital to strategic emerging industries like new energy, new materials and big data, concentrating on competitive sectors such as large-scale agriculture and tourism and extending into foundational, essential and livelihood-related areas. This approach aims to fully leverage SOEs' supportive roles in technology innovation and industrial security. Jilin is rich in forest resources, with us previously having two large forest industry groups. Due to homogenous competition, the resource advantage was not being fully utilized. Through our reform strategy of merging, integrating and harmonizing, we combined these two separate groups into a single forest industry group to strengthen core industries like ecological protection, product processing, under-forest economy, beverages and leisure resorts. By shedding non-essential businesses, the enterprise has seen sound operation, with substantial increases in revenue and profits this year.

Second, we are increasing the leading role of SOEs in scientific and technological innovation. We support SOEs taking the lead in integrating production, academia, research and application, forming innovation consortia, building platforms for the commercialization of scientific and technological achievements and expanding application scenarios. We have implemented elevated management for Jilin Chemical Fiber Group, coordinating provincial resources and establishing a carbon fiber research institute to tackle critical technologies. High-grade products have already achieved mass production, with expanded applications in aerospace, rail transportation, automotive lightweighting, sports equipment, household goods and other fields. Additionally, the downstream product industrial park is under construction. Currently, Jilin Chemical Fiber boasts the world's largest capacity for protofilament and China's largest capacity for carbon fiber, pressing ahead toward becoming a world-class innovative enterprise that uses special and sophisticated technologies to produce novel and unique products.

Third, we are optimizing governance system and enhancing core competitiveness. We are innovating the SOE oversight and evaluation system by implementing a target-based responsibility system for corporate leaders through their tenures. We are reducing the number of management levels in enterprises, optimizing equity structures and promoting enterprises to conduct reforms and improve their structures. By increasing governance efficiency and improving operational quality and effectiveness, we have restructured and consolidated 66 small and scattered provincial-level SOEs into 12 larger and stronger ones, reducing the number of firms by 81.8%. The levels within the companies have been decreased from five to three, with the total number of enterprises across all levels reduced from 826 to 542, representing a 34.4% decrease.

At present, we are making efforts to deepen and enhance SOE reform, and we expect that over the next several years Jilin's SOEs will regain their vitality. Thank you.

Beijing Youth Daily:

The business environment has been a topic of wide concern. We have observed that Jilin province has made The Conference on Optimizing the Business Environment its first meeting of the year for four consecutive years. What efforts has Jilin made in this regard? Thank you. 

Cai Dong:

Thank you for your interest in Jilin's business environment. In recent years, Jilin has made significant progress in improving its business environment with digital technologies and advancing socioeconomic development through an optimized business environment. 

In 2018, we took the lead across China in formulating administrative services and a digital construction governance bureau. Adopting the model of provincial coordination as well as city and county application, we significantly improved online approval efficiency. The overall approval time for engineering construction projects has been reduced by over 60%, and the time to start a business has been shortened from the original 11 days to just 1 day with the fastest cases completed in just 20 minutes. We have implemented a credit evaluation reform for business entities in 41 fields, and, currently, the comprehensive city credit directories from various cities and prefectures rank among the top in the country.

The improvements in the business environment have injected strong momentum into Jilin province's high-quality development. In 2023, the number of business entities in Jilin increased by 14%, with the number of businesses entities per one thousand people ranking eighth nationwide. Over the past five years, the utilized capital of attracted investment has increased by over 30% annually, and a number of landmark and leading major projects have been implemented in Jilin. 

This year, we will launch initiatives focusing on improving the business environment. We have formulated 40 specific measures to facilitate breakthroughs as well as to solve key and minor problems, thus creating a first-class business environment featuring streamlined process and providing online and one-stop services.

For instance, in terms of administrative law enforcement, we have set up a mechanism for law enforcement supervision and management marked by "reporting in advance," "presenting certificates on-site," "scanning QR codes for inspection" and "follow-up evaluation." Law enforcement officers inspect and record through QR codes generated by the corresponding APP, inform about inspection matters by showcasing the QR code and then the businesses can make comments through the APP after the law enforcement actions. At the same time, we have also established a system of benchmarks for administrative discretion and made a list of cases that "receive no punishment for first violation" so as to effectively address issues of arbitrary law enforcement after a combination of policies and measures.

Regarding construction and approval of projects, for example, we implement "one-stop services or online handling." For cases that can't be handled online, we can provide assistance or proxy services and integrated access to government services, so that enterprises as well as the public can save more time and energy. In addition, concerning the protection of project factors, we have built a land-supply model combining "standardized land and a commitment system," set up a digital supermarket for available land, provided projects with land for construction in a targeted manner and promoted connectivity and interaction between immovable property registration platforms and financial platforms, thus realizing "one-stop" handling of mortgage loan and mortgage registration. Here, I'd like to share with you how we improved our efficiency and made significant changes. Taking the Audi FAW new energy vehicle project that was a collaboration between Jilin province and Germany as an example, we set up a special team for targeted services. It took only 20 minutes to complete the enterprise registration and the construction permit process was finished within 2 days. We completed handling of construction review and other procedures within 15 days, while capping the main structure of the factory area in 5 months. In one and a half years, the project was completed and started trial operation. Such speed was also highly praised by the German partners as "Chinese speed, industry miracle."

In short, Jilin's business environment is improving and its future bears high expectations. We welcome media friends to examine our work. Thank you.

Jilin Radio and TV Station:

Recently, Changbaishan Global Geopark was listed in the Global Geoparks network by the United Nations Educational, Scientific and Cultural Organization (UNESCO). As we know, Jilin boasts a wealth of prestigious tourist sites including Changbai Mountain and Chagan Lake as well as abundant winter tourism resources. What are the province's measures and plans to promote the high-quality development of its tourism industry? Thank you.

Hu Yuting:

Thank you for your attention to Jilin's tourism industry. I'll invite Ms. Yang to answer this question.

Yang Andi:

Thank you for your attention to tourism in Jilin. Representing the origin of tourism in Jilin, Changbai Mountain is a paragon for the development of Jilin's cultural tourism industry. The sacred mountains and waters, powder snow, hot springs and sea of forests have formed an ecological barrier for the Northeast Asia region. Its listing in the Global Geoparks Network by UNESCO signifies that Jilin has more confidence and strength in efforts to build a world-class tourism brand.

We will promote the high-quality development of Jilin's tourism industry through five comprehensive approaches:

First, an all-dimensional layout in the whole province will be built. As you just mentioned, Jilin is a province with abundant tourism resources, good structure, strong differentiation and outstanding advantages when it comes to resources for winter activities. It boasts many hot springs and extensive wetlands, competitive border location conditions and has profound cultural and historical heritage. Though our cultural and tourism industries started relatively late, it developed quickly, from the solo highlight of Changbai Mountain area during the 12th Five-Year-Plan period (2011-2015), to the "core leading pairs" of Changbai Mountain area and Changchun-Jilin tourism economy during the early period of the13th Five-Year-Plan (2016-2020), to the "three growth poles" of the western ice industry center in the middle of the 13th Five-Year Plan period, to the "four engines of growth" after the rise of Tonghua and Meihekou cities during the late 13th Five-Year-Plan period, and then to the building of cities and counties throughout the province with annual GDPs exceeding 100 billion yuan and 10 billion yuan, respectively. Through these efforts, a fully supported spatial layout with diversified development has basically taken shape.

Second, full-season development will be carried out. In terms of different seasons, we will solve the problem of winter tourism by focusing on the local feature of ice and snow, promote innovative development of art and leisure industries and form an industrial model where winter tourism interplays with summer one, they together stimulate spring and autumn tourism, and each season has its own special features.

Third, the whole industrial chain will be promoted. Aiming to build the province both as a winter resort and a summer resort, we will make more efforts to form a double industrial pattern. "5+X" industrial chain with snow and ice sports, tourism, culture, equipment manufacturing and scientific innovation at its core is taking shape. We will also optimize the four traditional business models including summer resorts in mountains, waterfronts, forests as well as rural areas, and highlight the three new types of sectors including health care at summer resorts, study tours and extended stays at summer resorts.

Fourth, we will build a complete product portfolio. In winter, Jilin features ice and snow activities for vacation and leisure purposes, forming a vibrant product ecosystem to appeal to high-end and mass-market tourists at both day and night and throughout the year. In summer, Jilin has built a diversified tourism product system featuring refreshing experiences with its scenic mountains and rivers, tranquil forests, serene countryside, unique culture, leisurely lifestyle and gourmet food. Jilin has also staged an array of well-designed tourism products for autumn and spring, which are themed on seeking the most beautiful fairytale of autumn in Jilin, Changbai Mountain spring snow, and spring blossom appreciation tours.

Fifth, we will provide all-round services. We will continue to improve tourism infrastructure. The six airports in Jilin will have more than 280 air routes by 2025. The opening of the Shenyang-Changbaishan high-speed railway will bring tens of millions of passengers to Changbai Mountain. The province's scenic spots will attain full 5G network coverage to improve service capabilities. At the end of last year, the number of beds in Beidahu Ski Resort reached 8,000, making it the largest single ski resort in Asia in terms of reception capacity. By the end of this year, another 1,000 beds will be added. The number of ice and snow sports instructors has increased from less than 300 when the industry began to 6,417 now. To optimize the market environment, the provincial government took the lead and joined forces with the public security, transportation, commerce, culture and tourism, market regulation and other departments to carry out comprehensive rectification in six key areas, so as to create a convenient, comfortable and safe tourism environment.

Lastly, I would like to sincerely invite all friends from the media to visit Jilin. Jilin is a beautiful province and I am waiting to see you there. Thank you.

Shou Xiaoli:

The last two questions, please.

CCTV:

We have noticed that Jilin province has introduced many measures to support the development of the private sector, especially in terms of improving enterprise-related services. Can you give us a detailed introduction?

Li Guoqiang:

Thank you for your interest in private enterprises. Private enterprises account for half of Jilin's GDP. To some extent, we can even say that only when the private economy is robust, can Jilin achieve prosperity. We have focused on four areas, namely, policy innovation, service consideration, industry expansion and quality improvement.

We stress policy innovation. Last year, we introduced 41 substantial policies to support the development of private enterprises. Some measures set the pace in the country. For example, 41 fields have used professional credit certificates to replace the previous reports of non-violation records. Now, as long as you enter company-related information online, the certificate will be issued within 3 seconds, which allows enterprises to make fewer visits to government departments in order to get things done and greatly improves efficiency. This new method has gained widespread popularity among private enterprises.

We provide considerate services for our enterprises. Governments at all levels often hold corporate salons, roundtable meetings and other activities to listen to the needs of enterprises in person and to help them address problems in a practical way. We resolve matters that can be addressed quickly and immediately, and try our best to handle those that are difficult. In cases where no solutions can be found, we will explain clearly to the company the reasons why. Let me give you two examples. The first example is last year we had a company that wanted to go public, and needed relevant departments to provide reports. It would probably take several months for the company to complete all established procedures. So, we changed from sequential approval to parallel approval and it only took seven working days to complete the approval process, creating convenient conditions for the company's listing. For the second example, we have a company that needs to spend more than 2 million yuan annually in treating electronic waste generated in production. After learning about the situation, we helped this company establish contact with a new energy company to buy the electronic waste as raw material. In this way, this company not only eliminates electronic waste disposal fees, but generates additional income. There are many other examples like these two in Jilin. At the same time, we have made the transition from solely solving one concern to solving concerns of the same category. For example, we face a shortage in talent in the automobile and pharmaceutical industries, both of which are key industries in our province. To tackle this problem, the CPC Jilin Provincial Committee and the Jilin Provincial People's Government have introduced special policies for talent recruitment in these two sectors, with talent being able to receive up to more than 2 million yuan in support.

We have greatly increased the number of business entities. Mr. Cai has just elaborated from the perspective of the business environment, saying that last year the number of business entities in Jilin increased by 14%, and the number of business entities per 1,000 people in the province is among the highest across the country. You may not have expected this.

We have improved quality in terms of empowerment. We have mainly focused on cultivating science and technology enterprises. Last year, our science and technology enterprises grew by 15.36% and small and medium-sized science and technology enterprises grew by 72%, ranking first in the country, which everyone may not have expected, either.

Not long ago, we held a provincial conference on the development of private economy. Next, we will carry out a series of activities serving enterprises in terms of talent, technology, finance and project matchmaking, continue to use solid measures to improve the "soft" environment and build a cordial and clean relationship between government and business in order to make Jilin truly a hub for investment and business development. Thank you. 

Shou Xiaoli:

The last question, please. 

Cover News:

In recent years, the number of wild Amur tigers and Amur leopards in Jilin has continued to increase, and they have been frequently seen "on camera," indicating significant improvement in the ecosystem. Could you share with us the good experiences and practices of Jilin province in protecting the ecological environment and building a beautiful Jilin? Thank you.

Hu Yuting:

Thank you for your interest in Jilin's efforts in ecological conservation. Now, with the growth and expansion of wild animal populations, animal diversity in Jilin has continued to increase, reflecting the ongoing enhancement of the province's ecological environment. Here is a set of data to share with you. The current numbers of wild Amur tigers and Amur leopards in Jilin are over 50 and 60, respectively. While the figures may seem modest, they represent a doubling compared to 2017. This 100% increase in population for these special species is remarkable. New Amur tiger and leopard cubs are born every year, forming a relatively stable breeding population. In Jilin's Hunchun city, the core area of the Northeast China Tiger and Leopard National Park , "roadblocks" caused by these special species frequently occur, as is evident from online videos. These encounters are not only seen in our surveillance cameras but are also often experienced by tourists on roads within certain scenic areas, signifying considerable populations for these special species. In addition, the Chinese merganser, dubbed "the giant panda of birds," has seen its population exceed 600, doubling over the past five years. Furthermore, tens of thousands of white cranes and red-crowned cranes migrate and settle in the wetlands of west Jilin each year. Currently, Jilin has established a system of protected areas, including the Northeast China Tiger and Leopard National Park, 36 nature reserves and 88 natural parks, with the protected area accounting for 17% of the province's total land. 

Green is a defining feature of Jilin. In the east, the land is adorned with rugged mountains where tigers and leopards dwell. In the west, expansive grasslands and wetlands see the graceful flying of cranes in the sky. In the central region, fertile plains stretch for miles, filling the air with the fragrance of abundant grains. We protect Jilin's ecology as we would our own eyes, striving to build it into a pilot zone for the Beautiful China Initiative.  

For one thing, we have accelerated efforts to build up Jilin's strengths in ecology. Jilin stands as the source of the Songhua River, Yalu River and Tumen River, with five major water systems weaving across the province. The Changbai Mountain in Jilin, one of China's six major forested areas, constitutes a crucial ecological shield in Northeast Asia, earning the acclaimed titles of "Changbai Forest Sea," "Northeast Water Tower," and "Gene Bank of Species." We have consistently implemented the ecological conservation and restoration project targeting the mountain, water, forest, farmland, grassland and desert ecosystems. In recent years, a diverse ecological pattern has emerged, with extensive forests, interconnected grasslands and interspersed wetlands. The Chagan Lake in west Jilin ranks as the seventh largest freshwater lake in the country, and winter fishing practices on the lake have been recognized as a national intangible cultural heritage. We have implemented the Chagan Lake conservation and development project, aiming to restore forests, grasslands and wetlands. As a result, the ecological environment around the lake has significantly improved, earning it a 5A rating scenic spot this year, and making it another signature attraction for Jilin's tourism.  

Additionally, we have continuously elevated the ecological "happiness index." Taking the improvement of ecological environment as a crucial aspect of people's well-being, we have made solid efforts in preventing and controlling pollution, consistently achieving new highs in the quality of the environment across the province. Jinlin now sees around 93% of days with good or excellent air quality, leading the nation in this regard. In the Changbai Mountain area, the air contains over 40,000 negative oxygen ions per cubic centimeter. Today, "Jilin Blue" has become a prevailing hue of happiness, with clean, beautiful and livable villages scattered across the province. 

We sincerely invite you to Jilin and experience its lush mountains, lucid waters, fertile black soil, clear blue sky and refreshing air. Thank you.  

Shou Xiaoli:

Thank you, Mr. Hu. Thanks to all the speakers and our friends from the media. Today's press conference is hereby concluded. Goodbye. 

Translated and edited by Zhu Bochen, Wang Wei, Liu Sitong, Huang Shan, Lin Liyao, Ma Yujia, Wang Ziteng, Yuan Fang, Liu Jianing, Zhang Tingting, Wang Yanfang, Yan Bin, Zhang Junmian, Xu Xiaoxuan, 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. Wang Dongwei, vice minister of finance

Mr. Li Xianzhong, director general of the Department of Treasury of the Ministry of Finance (MOF)

Mr. Wang Jianfan, director general of the Budget Department of the MOF

Chairperson:

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

Date:

April 22, 2024

Xie Yingjun:

Ladies and gentlemen, good afternoon. Welcome to this briefing held by the State Council Information Center (SCIO). This is a regular briefing on China's economic data in the first quarter. Today, we have invited Mr. Wang Dongwei, vice minister of finance, to brief you on China's fiscal revenue and expenditure in the first quarter of 2024, and to take your questions. Also present today are Mr. Li Xianzhong, director general of the Department of Treasury of the Ministry of Finance (MOF), and Mr. Wang Jianfan, director general of the Budget Department of the MOF.

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

Wang Dongwei:

Ladies and gentlemen, friends from the media, good afternoon. I'm very glad to meet you again. Thank you for your long-term interest in and support for the fiscal work. First, I will brief you on China's fiscal revenue and expenditure in the first quarter of 2024.

Since the beginning of this year, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, we have thoroughly implemented the guiding principles of the Central Economic Work Conference and the "two sessions" (National People's Congress and Chinese People's Political Consultative Conference). Following the decisions and deployments outlined in the government work report, we have appropriately enhanced the intensity of our proactive fiscal policy and improved its quality and effectiveness . We have consistently leveraged fiscal policy space effectively, strengthened the coordination of fiscal resources, and improved the policy toolkit and its utilization, promoting sustained economic recovery and growth. In the first quarter, fiscal revenue and expenditure maintained a stable performance, presenting the following three features:

First, fiscal revenue maintained a rebound trend when calculated on a comparable basis. In the first quarter, revenue in the national general public budget reached 6.0877 trillion yuan ($0.84 trillion), marking a year-on-year decline of 2.3%, or comparable growth of 2.2% after adjusting for special factors, maintaining a recovery trajectory. What are the special factors? One is the inflated baseline caused by the entry into treasury of partial tax deferrals for micro, small and medium enterprises in manufacturing during the first few months of 2023. Another is the decline in this year's fiscal revenue as a result of the carryover effect of the four tax reduction policies introduced in mid-2023. In the first quarter, national tax revenue stood at 4.9172 trillion yuan, a year-on-year decrease of 4.9%, yet maintained stable growth after adjusting for the aforementioned special factors. 

Second, tax revenue of certain industries such as cultural tourism and advanced manufacturing registered rapid growth. In terms of services, the tax revenue from accommodation and catering, which are closely related to consumer spending, increased by 44.7%, culture, sports and recreation by 26.7%, transportation, storage and postal services by 6.8%, and retail by 5.7%. These figures demonstrate that the vitality of consumer spending is continuously being unleashed. Regarding manufacturing, its tax revenue in the first quarter experienced a year-on-year decline, yet registered stable growth after adjusting for incomparable factors such as the aforementioned inflated baseline. Despite the influence of incomparable factors, the tax revenue of certain subsectors in manufacturing still performed well by showing an upward trend. For example, the tax revenue of railway transportation equipment manufacturing increased by 9.5%, and computer manufacturing increased by 6.8%. 

Third, funding for key areas was effectively ensured. Fiscal departments at all levels strengthened coordination of fiscal resources, accelerated budget approval and utilization of additionally issued treasury bonds, and strengthened sufficient funding for major national strategic tasks and efforts to meet people's basic living needs. Meanwhile, we improved the structure of fiscal expenditure, made sure that Party and government departments get used to keeping their belts tightened, spending where necessary and saving where possible, and thus pooling financial resources to accomplish major tasks. In the first quarter, expenditure in the national general public budget increased by 2.9% year on year. Specifically, expenditure on social security and employment was 1.2708 trillion yuan, up by 3.7%; education was 1.0436 trillion yuan, up by 2.5%; urban and rural community development was 561.4 billion yuan, up by 12.1%; agriculture, forestry and water was 518.5 billion yuan, up by 13.1%; and housing support was 204.9 billion yuan, up by 7.8%.

Moving forward, the MOF will make solid efforts to implement the proactive fiscal policy, and strengthen fiscal management and supervision. We will integrate enhancing macro regulation, expanding domestic demand, fostering new growth drivers, and preventing and defusing risks, further improve the quality and effectiveness of the fiscal policy, and consolidate and strengthen the momentum for economic recovery and growth.

That's all for my introduction of the fiscal revenue and expenditure in the first quarter. Now, my colleagues and I are ready to answer your questions. Thank you. 

Xie Yingjun:

Thank you, Mr. Wang. Now the floor is open to questions. Please identify the media outlet you work for before asking your question. 

Xinhua News Agency:

As Vice Minister Wang just mentioned, China's fiscal spending expanded by 2.9% in the first quarter, ensuring effective funding for key areas . Could you provide further information on how this budget was allocated? Thank you.

Wang Dongwei:

Thank you for your question. In the first quarter, finance departments at all levels kept their belts tightened and continued to prioritize and ensure funding for key areas, while observing the principle of controlling general expenditures. In the first quarter, China's general public budget spending was nearly 7 trillion yuan (US$985 billion), up by 2.9% compared to the same period last year. This was not easy, especially due to last year's concentrated settlements with pandemic-related expenses. This growth underscores our efforts in enhancing the intensity of our proactive fiscal policy as well as to improve its quality and effectiveness. Here, I'd like to elaborate on how we have achieved this.

First, all funds from additionally issued treasury bonds were allocated at the beginning of the year. An additional one trillion yuan of treasury bonds issued in the fourth quarter of last year were mostly used this year. By the end of February, the Ministry of Finance had already assigned all one-trillion-yuan bonds to local governments. Official data showed that the funds specifically targeting expenditures in urban and rural communities, agriculture, forestry, water conservancy , and disaster prevention and emergency management increased by 12.1%, 13.1% and 53.4% year-over-year, respectively, showing double-digit growth.

Second, over 80% of transfer payments' budget has been issued. For 2024, the central government has planned 10.2 trillion yuan for transfer payments to local governments, a comparable increase of 4.1%. After the National People's Congress approved the central budget for 2024, the Ministry of Finance promptly completed the budget allocation as per the Budget Law .

By early April, all of the central government's budgets for this year were approved with 8.68 trillion yuan of transfer payments being allocated to local governments, accounting for 85.1% of the budget that was set early this year. All projects eligible under general transfer payments and those under shared fiscal powers have been fully funded.

Third, the process of making budgetary funds available for fiscal expenditures has been accelerated. In the first quarter, China's general public budget spending has already completed 24.5% of the total budget, exceeding the average rate for the same period over the past three years. Several sectors registered rapid growth in fiscal spending, including social security and employment, healthcare, urban and rural communities, transportation, and housing. Fiscal spending with social security and employment reached 30.7%, urban and rural communities 26.2%, healthcare 25.1% and transportation 25.1%. All ahead of schedule.

That's all I'm going to say for this question. Thank you.

China Financial and Economic News:

According to media reports, investors have been actively purchasing savings bond, leading to a situation where some banks are unable to meet demand. How do you view this phenomenon? Thank you.

Wang Dongwei:

My colleage Mr. Li Xianzhong will answer this question.

Li Xianzhong:

Thank you for your question. Savings bonds represent national credibility. They are favored by investors due to their capital preservation and interest protection along with stable returns. The progression of March's and April's issuance of savings bonds was generally stable, but there was, to a certain extent, imbalances between supply and demand. To explain this, it is important to understand that there are different types of savings bonds and different issuance methods. Currently, we have two kinds of savings bonds: certificated bonds and electronic bonds .

Certificated savings bonds are normally available at bank counters. Due to varying customer bases and demands at each branch, there are challenges with adjusting the sales quotas across different branches, which can lead to supply-demand imbalances at some locations. Take the issuance of certificated bonds in March, the Beijing branch of a major commercial bank sold 70% of its total allocation on the first day. Each issuance of treasury bonds would normally last for 10 days. 14 out of 466 outlets in Beijing sold the planned volume within half an hour, causing some investors at the counters to miss out on purchasing bonds.

Electronic savings bonds can be purchased at both bank counters and online via smartphones. And the sales quota can be flexibly adjusted among different channels, either between different banks, different outlets or through online methods. According to statistics, investors over 60 years old, who normally prefer purchasing at bank counters, account for 55% of the total investors of savings bonds. To better meet the needs of this traditional customer segment, the sales quota for electronic savings bonds on the first day are weighted towards counter sales, allocating 60% of the total quota to branch counter sales. This ensures that demand at the counters is generally met.

Since April, the public has paid more attention to savings bonds, which was influenced by factors such as some banks lowering deposit interest rates and suspending sales of large deposit certificates. 99.7% of the planned electronic savings bonds issued in April were sold out on the first day of issuance, which was significantly faster than the average in recent years. At many banks' counters, the bonds were sold over two hours. As the internet or mobile phone platforms could accommodate more investors to buy products simultaneously, these sales were more concentrated, leading to a momentary imbalance between supply and demand of bonds in some banks. Online or on mobile platforms offered by 32 banks, investors had about half an hour on average to purchase savings bonds. The bonds were sold out online or on mobile platforms within a minute at two banks while at seven other banks the record was six minutes.

In order to further meet investors' demand for bond purchases, we will take the following four measures in the next step: First, we will pay close attention to changes in the supply and demand relationship and sales of savings bonds, and study how to appropriately increase the issuance scale. The core of being "hard to purchase bonds for investors" is that demand is strong and supply is relatively insufficient. So, our next step is to appropriately increase the scale of issuance. Second, we will study how to further reduce the limits on individual purchases so that savings bonds can benefit more investors. Third, we will continuously improve the information service of electronic savings bonds on the basis of ensuring over-the-counter sales, and steadily increase the online (mobile phone) sales of electronic savings bonds. At the same time, we will encourage and guide more investors to purchase bonds online or through mobile banking, so as to improve their purchasing experience. Fourth, we will work with relevant departments to further optimize certificate savings bonds' mechanisms for quota allocation to better match branches with actual needs. We will optimize the mid- and long-term arrangements for the issuance ratio of certificate and electronic savings bonds to better meet the needs of investors' demand when purchasing bonds.

That's all for my introduction. Thank you.

Yicai:

In the fourth quarter of last year, the central government issued additional treasury bonds worth one trillion yuan. Can you give us a detailed explanation to the use and distribution of these additional funds? And what measures has the MOF taken to strengthen capital supervision? Thank you.

Wang Jianfan:

Thank you for your questions. In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, and upon review and approval by the Standing Committee of the National People's Congress, an additional one trillion yuan of treasury bonds were issued in the fourth quarter of 2023, with a focus on supporting post-disaster recovery and reconstruction and making up for shortcomings in disaster prevention, reduction and relief. It is of great importance to comprehensively improve China's resiliency against natural disasters and better protect the safety of people's lives and property in China. The MOF has earnestly implemented and refined a work plan and has completed tasks in a concrete and orderly manner.

First, we have organized the issuance of treasury bonds well. After the Standing Committee of the National People's Congress reviewed and approved the plan for the additional issuance of treasury bonds, the MOF promptly adjusted the treasury bond issuance plan for the fourth quarter, optimized the issuance window and the mix of bond maturities, mobilized members of the treasury bond underwriting group to prepare for debt repayments and ensured a smooth issuance of additional treasury bonds to raise funds fully. With the coordination and cooperation of all relevant parties, the issuance of one trillion yuan of treasury bonds was successfully completed by the end of 2023.

Second, we have worked hard in allocating funds raised by the issuance of treasury bonds. The National Development and Reform Commission (NDRC) and the MOF, along with relevant departments, have established a special working mechanism to organize the application and review of treasury bond projects in a timely manner. According to the project list determined by the special working mechanism, the MOF had allocated all funds raised by the issuance of the additional treasury bond to localities in advance by this February. We have urged and guided local authorities to use these funds for specific units and projects in line with the pace of progress, resulting in practical outcomes as soon as possible.

Third, we have made good arrangements for funds raised from the issuance of additional treasury bonds. The MOF has established a separate allocation mechanism for these funds. In December of last year, we allocated 500 billion yuan of funds to local governments in two batches. From January to February of this year, we allocated another 500 billion yuan of funds to local governments in three batches. In general, all one trillion yuan has been allocated to localities to ensure that projects in various areas could be launched and promoted smoothly.

Fourth, we have established a supervision system for funds raised by treasury bonds. The MOF formulated the "Measures for the Management of Additional Treasury Bond Issuance in 2023" to standardize the allocation and use of funds raised by the government bonds, to improve the integrated budget management system and to conduct full-process supervision over funds. We have urged local regulatory bureaus to set up normalized supervision mechanisms in order to promptly discover and address existing issues. We have prompted local governments to standardize the use of funds and improve their efficiency.

Next, the MOF will actively utilize its functions, guide local governments to accelerate the implementation of projects and continuously enhance our supervision on the issuance of additional treasury bonds, ensuring the precision and efficiency of fund use. Thank you.

CCTV:

We have noticed that in the first quarter of this year, the central government introduced some policies supporting new drivers of economic growth. Could you please elaborate on the relevant situation and what policy considerations will be taken in the next step? Thank you.

Wang Dongwei:

Thank you for your question. I will answer it. The central government attaches great importance to cultivating new drivers of economic growth and vigorously supports them. I will respond in the following way:

First, we focus on supporting the high-quality development of the manufacturing industry. Centering on vigorously promoting the building of a modernized industrial system and accelerating the development of new quality productive forces, the central government has allocated special funds in the manufacturing sector to make up for weaknesses and strengthen advantages in key technologies and industries and to promote leapfrog development in industries such as new-generation information technology, high-end equipment and new materials. Soon, we will collaborate with departments such as the Ministry of Industry and Information Technology to implement a new round of fiscal support policies for small and medium-sized enterprises with specialized and sophisticated technologies to produce novel and unique products , cultivating more corresponding experts in vital links within the industrial chain. We will pilot new technological transformation in some cities in the manufacturing sector and allocate 3 billion yuan in 2024 to support the "intelligent transformation, digital transformation and networking " of the first batch of around 20 pilot cities, so as to enhance the high-end, intelligent and green standards of the manufacturing industry.

Second, we will focus on promoting the growth of the digital economy. The central government's fiscal support will spotlight key areas of the digital economy, including supporting the construction of digital infrastructure, cultivating industrial internet platforms and promoting the digital transformation of small and medium-sized enterprises, in order to promote the deep integration of the digital economy and the real economy. In the first quarter, the growth rate of the value added of information transmission, software and information technology services reached 13.7%. In 2023, we allocated 3 billion yuan to support 30 pilot cities in carrying out pilot projects for the digital transformation of small and medium-sized enterprises and address the prominent issue of "not daring to transform, unwilling to transform and not knowing how to transform" faced by those enterprises. This year, another 3 billion yuan will be allocated to expand the scope of the pilot. In the next step, we will work with relevant departments to launch the digital transformation and upgrading of transportation infrastructure, supporting the digital transformation of a number of busy national highways, ordinary national roads and high-grade waterways, aiming to promote intelligent expansion, safety efficiency improvements and industrial integration of transportation facilities.

Third, we will focus on expanding and promoting domestic demand. We will make good use of fiscal and tax policies to support the implementation of large-scale equipment renewal and trade-ins of old consumer goods. Centering on the trend of upgrading residents' consumption, we will integrate existing policies with new ones, adhere to the linkage between the central government and local governments, actively promote the trade-in of old durable consumer goods, such as automobiles and household appliances, and cultivate new growth points for consumption. We will support the implementation of county-level actions for commercial construction and the construction of modern commercial and trade logistics systems to improve the level of guarantee for consumption service . Soon, we will work with relevant departments to launch county-level charging and battery swapping facilities to make up for weaknesses and, this year, we will support about 70 pilot counties in 24 provinces to tap the potential of new energy vehicle consumption within rural areas.

Fourth, we will focus on improving the quality and efficiency of infrastructure. We will comprehensively use policy such as additional issuance of treasury bonds, special local government bonds, the central government budget for investment and vehicle purchase tax funds to promote the construction of key fields and major projects. For example, since 2022, a total of 13.7 billion yuan has been allocated to support the implementation of national comprehensive freight hub reinforcement work in two batches of 25 cities, aiming to promote the reduction of comprehensive logistics costs.

Next, we will work with relevant departments to support some large and medium-sized cities in implementing urban renewal actions, including updating and renovating underground pipe networks. At the same time, we will support a new batch of cites to reinforce their functions as national comprehensive freight hubs. These efforts will further improve the shortcomings of infrastructure and better leverage the stimulus effect of government investment.

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

Bloomberg News:

What is the reason for the slow issuance of local special bonds since the beginning of this year? And when is the issuance expected to speed up? Thank you. 

Wang Jianfan:

In order to implement the decisions and deployments of the CPC Central Committee and the State Council, actively play the role of local government bonds, stimulate effective investment and promote steady economic recovery and growth, in December 2023, the MOF performed approval procedures in accordance with the law and approved part of the 2024 quota for local government special bonds in advance.

In 2024, the MOF will work with related departments to continuously improve and adjust the investment areas of local government special bonds and the scope of project capital. We will include more fields of new energy, new infrastructure and new industries for investment in local government special bonds. We will issue bonds to support independent new-type energy storage and the comprehensive treatment of water environments in key river basins; guide local governments to provide more support for areas including infrastructure of national industrial parks, integrated application of 5G technologies, urban village renovation, construction and supply of government-subsidized housing and college dormitories; further plan major projects that deliver significant socio-economic benefits, have a strong driving effect, are wanted by the people, and need to be implemented. We will allow the use of local government special bonds as project capital for government-subsidized housing to help the bonds play their leveraging role. Meanwhile, we will guide local governments to strengthen project reserve, focusing on key investment areas identified by the CPC Central Committee and the State Council, and strictly implement the list of prohibited items. We have worked with related departments to ask local governments to submit their demands for new special bond projects in 2024. Currently, the MOF has been strengthening the review of projects from the aspects of project maturity, balance of financing and revenues, and fund use compliance to improve the quality of project reserves. 

In the first quarter of 2024, all localities issued special bonds within the limit of the 2024 quota for local government special bonds approved in advance, mainly for the construction of projects in key areas identified by the CPC Central Committee and the State Council, such as municipal construction, industrial park infrastructure, social programs, transportation infrastructure and government-subsidized housing projects. Special bonds have played a positive role in strengthening the economic foundation, shoring up weak links, improving people's lives and expanding investment. The issuance scale of special bonds in the first four months was smaller than the same period in previous years. This is due to two factors. On one hand, the scale of issuances at the beginning of previous years was expanded to cope with the impact of special factors such as the COVID-19 pandemic. On the other hand, it is also related to demand for local project construction funds, conditions for construction in winter and spring, bond market interest rates and other factors. At the same time, we have also done a lot of work to improve the quality of special bond projects and strengthen the preliminary preparations of projects. Overall, the issuance scale for the whole year is still in line with expectations.

Next, the MOF will work with related departments to guide local governments to issue special bonds at the right pace, optimize the pace and scale of government investment, guide and ensure the funding demand of major projects, use special bonds more efficiently, give full play to the driving and amplifying effect of government investment, consolidate and build momentum for economic recovery and growth, and continue to effectively pursue higher-quality economic growth and appropriately increase economic output. Thank you. 

Guangming Daily:

At present, spring plowing and sowing have entered a critical period. How has the central government's financial support for spring plowing been this year? Are there any new initiatives? Thank you. 

Wang Dongwei:

Thank you for your questions. I will answer your questions. Plans for the year begin in spring. Spring plowing is of great significance for stabilizing agricultural production throughout the year, and especially grain production. The central government has strengthened policy implementation, and funds related to agricultural production have been allocated this year to support a good start to agricultural production throughout the year. I would like to share several points with you. 

First, we will focus multidimensional efforts on the land to help consolidate the foundation of grain production. There are three main measures: First, we will increase capital investment. We are guiding all localities to make good use of an additional 224.9 billion yuan of treasury bonds issued at the end of 2023 to efficiently advance the cultivation of high-standard cropland, and the redevelopment and upgrading of irrigated areas. Continued support will be provided this year through transfer payment to cultivate modern and high-quality farmland with high and stable yields regardless of drought or floods. Second, subsidies for farming have been increased. The central government's subsidy per mu of high-standard cropland has been increased from 1,300 yuan to 2,400 yuan, and local requirements for supporting funds from major grain-producing counties have been canceled. Third, the scope of support has been expanded. An allocation of 5.2 billion yuan will be used for expanding the conservational tillage area of black soil to 100 million mu. A total of 4 billion yuan has been allocated for expanding pilot programs for comprehensive utilization of saline-alkali land from two provinces to 12 provinces. We should either grow tolerant crops in such land or transform such land for specific crops, so as to expand the space for agricultural production. 

Second, we focus on strengthening efforts in technology to support cost reductions and efficiency improvements in agricultural production. There are three main aspects: Firstly, supporting the increase in per unit yields for grain and oil crops across large areas. An allocation of 4 billion yuan will support the implementation of actions to increase the per unit yields of large-scale planters of grain and oil crops and promote the application of technologies such as dense planting and precision seeding to increase production. An allocation of 3.4 billion yuan will support the implementation of actions to grow key crops such as grain and oil crops through an eco-friendly, high-yield, and efficient approach, accelerating the integrated utilization of fertile fields, good seeds, high-quality machines, and useful methods and management systems. Secondly, supporting the revitalization of the seed industry. An allocation of 11 billion yuan will continue to support the seed source related key core technology R&D of key varieties such as corn and soybeans, and be used to carry out integrated pilot projects for the research, development, promotion and application of major varieties, implementing policies such as incentives for counties with significant seed production. Thirdly, supporting the promotion and application of agricultural equipment. This year, an allocation of 24.6 billion yuan will support the subsidization for purchase and application of agricultural machinery and strengthen the implementation of the scrapping and replacement of old agricultural machinery, which is included in the new round of large-scale equipment upgrades that I just mentioned.   

Third, we focus on providing support to enhance services and improve the agricultural service system. The main aspects include: Firstly, increasing support for socialized services. An allocation of 8.8 billion yuan will support various regions in providing commercial agricultural services to help solve the problem of "who will farm." Secondly, strengthening the foundation of agricultural talent. An allocation of 5.8 billion yuan will support the implementation of the Shennong elite project, a national program for fostering strategic scientists in agriculture, and the Touyan project that prepares leaders for rural revitalization, as well as programs to develop competent farmers, accelerating the cultivation of agricultural talent adapted to agricultural development. Thirdly, strengthening agricultural credit guarantee services. An allocation of 4.2 billion yuan in fund for rewards and subsidies will offer support for the national agricultural credit guarantee system to innovate and improve products related to grain production, processing and circulation. As of the end of March, there were 1.13 million projects under guarantee, with a balance of 398 billion yuan under guarantee.

Fourth, we focus on creating synergy of policies to improve the grain production income guarantee mechanism. There are four points: Firstly, ensuring the income of grain farmers. An allocation of 185.2 billion yuan will be used to continue subsidies protecting cultivated land fertility, subsidies for corn and soybean producers, and rice-related subsidies, and to increase the minimum purchase price for wheat and early indica rice. We implement policies to reward and subsidize domestic soybean crushing and processing and stabilize soybean planting expectations. Secondly, strengthening support for major grain-producing areas. This year, 57.1 billion yuan has been allocated for incentive funds in major grain-producing counties, achieving 19 consecutive increases. An allocation of 56.2 billion yuan for agricultural insurance premium subsidies will ensure the comprehensive implementation of the policy to insure the full cost and planting income of three major grain crops. Thirdly, fully supporting agricultural disaster prevention, reduction and relief efforts. Carrying out the approach of spraying pesticides, germicides, plant growth regulators and foliar fertilizers to prevent plant diseases, insect pests, and dry-hot wind hazards is very important for wheat production during the spring plowing season. We have allocated 1.6 billion yuan in advance to carry out this work. In the first quarter, more than one billion yuan was allocated to support the efforts in response to the impact of rain, snow, freeze and drought. We strengthened the assessment of crop pest and disease situations and will allocate relevant funds for prevention and control in the near future. Fourthly, improving the diversified input mechanism. We give play to the leverage effect of fiscal funds, innovating investment methods, coordinating with financial policies, and leveraging policy effects.

That is all from me. Thank you.

Zhinews of Shenzhen Satellite TV: 

The scale of government procurement in China is huge and plays an important role in guiding and promoting socio-economic development. What new measures will be taken in government procurement next to promote innovation and establish a modern industrial system? Thank you.

Li Xianzhong: 

Thank you for your question. In recent years, the MOF has actively utilized government procurement to support technological innovation, green environmental protection, small and medium-sized enterprises (SMEs) and rural revitalization, assisting in the high-quality development of the economy and society. Next, in accordance with the decisions and deployments of the Party Central Committee and the State Council, the MOF will continuously establish and improve a government procurement policy system that conforms to international rules, focusing on supporting the development of new quality productive forces and constructing a modern industrial system. This year, our work will mainly involve three aspects:

First, we will study and establish a cooperative innovation government procurement system. Cooperative innovation procurement refers to the procurement of innovative products that are not currently available on the market and require research and development, with the procurers starting to get involved as early as in the R&D stage, purchasing R&D services first and then purchasing the newly developed products. We summarized the characteristics of this new procurement method: it not only compensates suppliers for their R&D costs but also places orders in the form of a commitment to purchase a certain amount of innovative products, stimulating corporate innovation vitality through sharing R&D risks and jointly exploring initial markets. This approach is conducive to promoting the integrated management of innovative products from discovering demand and R&D to application and promotion, better supporting the innovation of applied technologies and the transformation of sci-tech achievements. Previously, the MOF did research and drafted the interim regulatory measures for cooperative innovation government procurement, and publicly solicited opinions from all parties. The measures are now ready for issuance and will be released in the near future.

Second, we will continue to improve the policies which support government procurement of green products. In recent years, as part of efforts to promote green transformation and upgrade of the building industry, the MOF has worked with relevant departments to adopt policies which support government procurement of green building materials in order to construct higher-quality buildings. Trials have been launched in various places. This year, based on knowledge gained from these trials, the ministry will expand the scope of policy implementation, with the number of trial cities rising from 48 to 100 and the number of green building material products covered by government procurement standards increasing from 75 to 100. By doing so, we will further intensify our support for promoting green buildings and using green building materials. Meanwhile, the ministry will further deepen and expand policies that support government procurement of other green products, strengthening policies and measures involving compulsory or preferential government procurement of eligible green products. All these will ensure that the government continues to leverage its role as a model and leader in procurement of green products.

Third, we will continue to implement policies involving equal treatment of domestic and foreign enterprises in terms of government procurement. Products made and services provided by both domestic and foreign enterprises in China must be treated on an equal footing during government procurement. This has been our consistent policy. In 2021, the MOF issued a notice on implementing policies involving equal treatment of domestic and foreign enterprises in terms of government procurement , reiterating and stressing this principle. Next, we will enhance regular supervision over procurement staff and agencies, and conduct special rectification focusing on their unequal treatment of domestic and foreign enterprises. We will intensify law enforcement and punish by law those who violate laws and regulations. In addition, we will learn from standard international practices and, after research, set up standards for government procurement of products made in China, aiming to better ensure the implementation of policies involving equal treatment of domestic and foreign enterprises in terms of government procurement.

That's all from me. Thank you.

National Business Daily:

It was proposed in this year's government work report that starting this year ultra-long special treasury bonds will be issued for the next several years. These bonds will be used to implement major national strategies and build up security capacity in key areas. One trillion yuan of such bonds will be issued in 2024. My questions are: What has the MOF done in regard to ultra-long special treasury bonds? And what is being planned for the next step? 

Wang Jianfan:

Thank you for your questions. The issuance of ultra-long special treasury bonds is a major strategic decision made by the CPC Central Committee and the State Council, which is of great importance when it comes to building a great country and achieving national rejuvenation. With examination and approval by the National People's Congress, the MOF has included in the budget for 2024 the revenue and expenditure generated from ultra-long special treasury bonds in 2024. Meanwhile, the preparatory work for ultra-long special treasury bond issuance has made steady progress. The ministry has actively participated in making an action plan to support the implementation of major national strategies and enhance the country's capacities to ensure security in key areas.

For the next step, with a focus on implementation, the MOF will closely coordinate and cooperate with relevant authorities in all work involving ultra-long special treasury bonds.

First, we will promptly issue ultra-long special treasury bonds according to their project allocations. Based on the bond market demand and the implementation timetable of projects supported by ultra-long special treasury bonds, we will scientifically design bond variety and maturity, so that the bond issuance will match the projects' timespan. Meanwhile, we will coordinate the issuance of general treasury bonds and special treasury bonds, ensuring that they are issued at the right pace and satisfying funding needs for projects supported by special treasury bonds. 

Second, we will strengthen coordination between central and local government funds, and between existing funds and the increase of funds. With funds raised from the issuance of ultra-long special treasury bonds, they will form a synergy so that their overall effectiveness is enhanced.

Third, we will study and establish supervision mechanisms based on funds raised from the issuance of ultra-long special treasury bonds. We will strengthen supervision over the whole process of fund allocation, distribution and utilization, ensuring the funds are well regulated and used in a safe and efficient way.

Xie Yingjun:

The last question, please.

Jimu News:

Macroeconomic data shows that the economy has continued to recover and improve in the first quarter of this year. Could you please elaborate on the specific areas where proactive fiscal policies will focus in the next phase to reinforce this positive economic momentum? Thank you.

Wang Dongwei:

Thank you for your question. Let me answer it. This year's government report explicitly states that we should appropriately enhance the intensity of our proactive fiscal policy and improve its quality and effectiveness. By observing the fiscal revenue and expenditure in the first quarter, it is evident that fiscal policy has been proactively deployed efficiently and quickly in order to provide robust support for the continued improvement and recovery of the economy. Moving forward, the MOF will focus on six key areas:

First, we will fully support sci-tech advancements to lead industrial innovation. In line with national strategic requirements, we will increase investments in basic research, applied basic research and cutting-edge research. We aim to accelerate the implementation of major national sci-tech projects, support research on disruptive and frontier technologies and advance the development of critical technologies. We will implement structural tax cuts and fee reductions, focusing on supporting sci-tech and manufacturing innovation. Moreover, we will coordinate the use of special fiscal funds and government investment funds to foster the growth of strategic emerging industries and accelerate the transformation and progression of traditional industries.

Second, we will focus on boosting domestic demand. We will coordinate the effective use of policy instruments such as government bonds, special local government bonds and central budget investments to drive the expansion of effective social investment. Meanwhile, we will implement and refine fiscal and tax support policies, actively promote replacing old durable goods, like cars and home appliances, so as to encourage expanding domestic consumption.

Third, we are committed to actively supporting the improvement and enhancement of the public's welfare and livelihood. In education, our focus is on increasing funding for high school education to meet the financial needs of students. We will promote the high-quality and balanced development of compulsory education, advocate for widespread and enhanced public-interest preschool education and ensure that vocational schools meet fixed standards. We will also push forward the development of world-class universities with Chinese characteristics and superior disciplines. In terms of social security, we will enhance subsidies for basic pension insurance funds, elevate public health service standards, vigorously implement first-rate employment policies and assist people in need. Regarding environmental protection, we will continue to effectively combat pollution. There are two significant points to highlight. First, we have established subsidy funds for the shelterbelt program in northwest, north and northeast China to support key projects in ecosystem restoration and management; second, we have created special funds dedicated to the disposal of electrical waste and electronic products to promote the comprehensive use of resources.

Fourth, we are committed to enhancing food and energy security at a higher level. We will increase incentives for major grain-producing counties, achieving a "19th consecutive increase" in funding to effectively motivate key production areas to prioritize agriculture and grain production. Additionally, we will enhance support for agricultural insurance premium subsidies and expand insurance coverage for major agricultural products. We will actively support efforts to ensure a stable energy supply and price stabilization, promote the sustainable development of renewable energy, encourage an increase in the production of unconventional natural gas and take multiple measures to improve energy security.

Fifth, we will promote coordinated urban and rural regional development. We will implement and improve fiscal and tax policies, vigorously promote new urbanization, support local governments in moving faster to grant permanent urban residency to eligible people who have moved to cities from rural areas, facilitate the implementation of major regional strategies and increase support for special regions such as old revolutionary base areas, ethnic minority regions and border areas.

Sixth, we will strengthen budget execution management and financial operation monitoring. We will direct local authorities and relevant departments to promptly refine allocated budgets into specific projects, enabling rapid release of policy effectiveness and maximizing the benefits of fund utilization. Simultaneously, we will enhance fiscal revenue and expenditure analysis to ensure that at the primary level basic living needs are met, salaries are paid and governments function smoothly. In addition, we will resolutely implement austerity measures for party and government organs, reinforce budget execution constraints and promote the safe and standardized use of fiscal funds.

While focusing on the six aspects outlined above, we will also adhere to the decisions and arrangements of the Party Central Committee and the State Council to better coordinate development and security, to continuously advance the prevention and resolution of local government debt risks, to accelerate the implementation of plans to defuse risks and to promote the reform and transformation of local government financing platforms in a classified manner.

That's all for my response to this question. Thank you.

Xie Yingjun:

Thank you to all of the speakers of your briefings. Thank you to all the journalists for your participation. Today's press conference is now concluded. 

Translated and edited by Xu Xiaoxuan, Zhou Jing, Guo Yiming, Ma Yujia, Wang Yanfang, Wang Ziteng, Yuan Fang, Yang Xi, Zhang Junmian, Xiang Bin, Liu Sitong, Li Xiao, Wang Wei, Wang Yiming, 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. Guo Tingting, vice minister of commerce

Mr. Yang Tao, director general of the Comprehensive Department 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

Ms. Ji Xiaofeng, a person in charge of the Department of Foreign Investment Administration of MOFCOM

Chairperson:

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

Date:

April 19, 2024

Xie Yingjun:

Ladies and gentlemen, good afternoon. Welcome to this briefing held by the State Council Information Office (SCIO). Today, we have invited Ms. Guo Tingting, vice minister of commerce, to brief you on China's commerce work and performance in the first quarter of 2024, and to take your questions. Also present today are Mr. Yang Tao, director general of the Comprehensive Department 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; and Ms. Ji Xiaofeng, a person in charge of the Department of Foreign Investment Administration of MOFCOM.

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

Guo Tingting:

Friends from the media, good afternoon. Thank you for your long-term interest in and support for the commerce work. Now, I'll brief you on China's commerce performance in the first quarter of 2024. It has been widely noted that the national economy got off to a good start in the first quarter, and the performance of commerce was also generally stable with an optimized structure, contributing to sustained economic recovery and growth.  

Consumption remained the primary driving force behind economic growth. In the first quarter, China's gross domestic product (GDP) increased by 5.3% year on year, with final consumption expenditure contributing 73.7% and driving GDP growth by 3.9 percentage points. Sales of upgraded goods saw rapid growth. In the first quarter, total retail sales of consumer goods grew by 4.7%, with retail sales of sports and entertainment products and communication equipment by enterprises above designated size growing by 14.2% and 13.2%, respectively. Service consumption continued to unleash its potential. Consumers' demand for quality and diverse "experiential" consumption constantly rose. In the first quarter, retail sales of services increased by 10%. Catering consumption remained buoyant, growing by 10.8%.

Foreign trade got off to a stable start. In the first quarter, trade in goods reached 10.2 trillion yuan, surpassing the 10-trillion-yuan mark for the first time in a single quarter, and the growth rate stood at 5%, marking a new high for the past six quarters. The contribution rate of net exports to economic growth rose to 14.5%. In terms of goods, exports of mechanical and electrical products grew quickly, exports of labor-intensive products also performed well, and exports of textiles and garments as well as furniture and its components increased by 5.4% and 23.5%, respectively. Driven by domestic demand, imports of energy and integrated circuits grew by 8% and 14.3%, respectively. In terms of markets, emerging markets remained vibrant, with imports from and exports to Belt and Road partner countries growing by 5.5% in the first quarter. Developed markets showed signs of recovery, with growth in imports and exports related to the U.S. increasing by around 5.5 percentage points compared to the same period last year. As for market entities, the number of foreign trade enterprises with import and export records increased by 8.8% in the first quarter, with the number of private enterprises growing by 10.4%, accounting for 85.3% of the total. A recent survey on key foreign trade enterprises conducted by MOFCOM showed that in March, the proportion of enterprises reporting employment increases reached 88.8%, growing by 1.7 percentage points compared to the previous two months. This indicates further strengthened confidence and expectations of enterprises.

In terms of attracting foreign investment, the "Investment in China" series of activities has been enthusiastically received. The inaugural flagship event alone attracted more than 140 representatives from foreign enterprises and business associations across 17 countries and regions. In the first quarter, 12,000 foreign-funded enterprises were newly established, an increase of 20.7%. As for the investment structure, investment in high-tech manufacturing in the first quarter accounted for 12.5%, an increase of 2.2 percentage points compared to the same period last year. Investment in the service industries closely related to people's lives also achieved rapid growth. In terms of the investment scale, utilized foreign investment reached 301.67 billion yuan in the first quarter, remaining at a historically high level.

Outbound investment maintained stable development. In the first quarter, non-financial outbound direct investment reached 242.92 billion yuan, an increase of 12.5%. Investment in the ASEAN and the EU grew rapidly by 36.7% and 34.5%, respectively. Investment in leasing and business services, manufacturing, and the wholesale and retail industry increased by 45.5%, 36.4% and 14.9%, respectively. The value of newly contracted projects stood at 330.64 billion yuan, an increase of 11.9%, with completed turnover reaching 230.13 billion yuan, an increase of 6.1%.

Next, MOFCOM will continue to thoroughly implement the decisions and deployments of the Communist Party of China (CPC) Central Committee and the State Council. Focusing on the three important positions of the commerce work (namely commerce work being an important component of the domestic economy, serving as a vital link between the domestic and international economic flows, and playing a crucial role in creating a new development pattern), we will strive to continue to expand consumption, ensure the overall stable performance of foreign trade and foreign investment, and promote high-level opening-up. We will also take multiple measures to advance high-quality development of commerce, thus providing strong support for achieving higher-quality economic growth and appropriately increasing economic output.

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

Xie Yingjun:

Thank you, Ms. Guo. Now the floor is open to questions. Please identify the news outlet you work for before asking your question.  

China Financial and Economic News:

The 135th China Import and Export Fair is currently being held. Could you please describe the current situation at the Canton Fair? Thank you.

Guo Tingting:

Thank you for your attention to the Canton Fair. The 135th Canton Fair is currently being held. Recently, Chinese Premier Li Qiang inspected the fair and presided over two consecutive symposiums, engaging in in-depth exchanges with overseas buyers and representatives from firms participating in the fair. This fully reflects the significant importance the CPC Central Committee and the State Council attach to the Canton Fair and foreign trade.

We will fully implement the decisions and deployments of the CPC Central Committee and the State Council to ensure the success of the Canton Fair. This aims to provide more high-quality products for consumers worldwide, offer more cooperation opportunities for enterprises globally, and inject new momentum into the recovery of the global economy and trade.

Today is also the last day of the first phase of the 135th Canton Fair, which has been characterized by four main features in terms of exhibitor and participant attendance as well as negotiations.

First, there has been a high attendance of overseas buyers. As of yesterday, approximately 120,000 overseas buyers attended the fair, marking a 22.7% increase over the previous session. Second, the composition of exhibitors has been further optimized. The number of national-level high-tech enterprises and specialized single-product manufacturers attending the first phase increased by 33% compared to the previous session. The number of high-tech enterprises involved in smart living, the "new three" (namely electric vehicles, lithium-ion batteries, and solar cells), and industrial automation rose by 24.4%. Third, the exhibits have better reflected the development of new quality productive forces. Over 90,000 AI products were displayed during the first phase of the fair, and transactions involving industrial automation equipment and new energy vehicles significantly increased, with some even doubling from the previous session. Fourth, the functionality of online platforms has been further improved. The online platforms of the fair continue to operate regularly. Up to yesterday, about 294,000 buyers from 229 countries and regions participated in the fair online.

I would also like to extend another invitation to our media friends here. The Canton Fair will continue with its second and third phases, which will be held in Guangzhou from April 23 to 27 and May 1 to 5, respectively. These phases will showcase consumer goods, gifts, decorations, textiles, and other products. We welcome everyone to continue following and providing in-depth coverage of the fair. Thank you.

Jimu News:

Economic and trade cooperation is an important part of the Belt and Road Initiative (BRI). What achievements has China made in deepening economic and trade cooperation with its BRI partners in the first quarter? What are the highlights?

Yang Tao:

Since the beginning of this year, the Ministry of Commerce has thoroughly implemented the guiding principles of General Secretary Xi Jinping's important speeches on BRI cooperation and earnestly implemented the eight major steps to support high-quality Belt and Road cooperation. It has continued to deepen economic and trade cooperation with BRI partners. Some new progress and achievements have been made in this regard, which are mainly reflected in the following four aspects:

First, economic and trade cooperation got off to a good start. In the first quarter, China's trade in goods with BRI partners exceeded 4.8 trillion yuan, an increase of 5.5%, 0.5 percentage point higher than the overall growth rate of foreign trade, accounting for 47.4% of total imports and exports. In terms of exported goods, there are not only high-tech products related to enterprise production, such as electronic information, instruments, apparatus, and equipment manufacturing, but also consumer products that meet everyday needs, like household appliances and clothing. Regarding imports, we actively share the opportunities of China's enormous market with our BRI partners. China's imports of industrial products from its BRI partners, including energy and mineral products, integrated circuits, and auto parts, continued to increase in the first quarter.

Second, outbound investment saw steady growth. In the first quarter, China's non-financial direct investment in BRI partners reached 54.32 billion yuan, an increase of 12%, accounting for 22.4% of total outbound investment in the same period. China's investment in RCEP countries increased by 33.5%, and its investment in Central and Eastern European countries increased by 41.3%, both significantly higher than the overall growth rate of outbound investment.

Third, for project construction, we have ensured stability while improving quality. In the first quarter, the turnover of China's contracted projects in BRI countries reached 184.6 billion yuan, an increase of 7.9%. Cooperation projects have also become more environmentally friendly. In the first quarter, the turnover from energy conservation and environmental protection projects increased by 18.4%, 12 percentage points higher than the segment's overall revenue growth. For example, we have completed a number of photovoltaic power station projects in the Middle East, West Asia, Central Asia, and other regions, which will provide green and clean energy to the local areas.

Fourth, the development of cooperation mechanisms has accelerated. In terms of free trade agreement negotiations, we successfully held the fifth round of negotiations on Version 3.0 of the China-ASEAN Free Trade Area (FTA) and signed an early harvest arrangement for the China-Honduras Free Trade Agreement (FTA). In terms of cooperation in emerging areas, we signed six memorandums of investment cooperation in green, blue, and other fields with the United Arab Emirates, Angola, and the Maldives. In terms of exhibition platforms, the recently concluded fourth China International Consumer Products Expo and the 135th Canton Fair have attracted many exhibitors from BRI partners. Exhibitors from BRI partners participating in the Canton Fair increased by 46%, and companies from partner countries accounted for 64% of the participants in the import exhibition of the fair.

Next, we will implement the decisions and plans of the CPC Central Committee and the State Council and strive to ensure that the economic and trade cooperation established at the third Belt and Road Forum for International Cooperation delivers results. Efforts will also be made to enhance cooperation in trade and investment, project construction, and emerging areas, to provide robust support to deepen and solidify BRI cooperation. Thank you.

Cover News:

This year, China launched a year-long program to stimulate consumption. The first quarter has ended. What trends have been observed in the consumer market? What measures will the Ministry of Commerce take to promote consumption? Thank you.

Xu Xingfeng:

Thank you for your interest in our efforts to promote consumer spending. Ms. Guo has already briefed us about the consumer market's contribution to economic growth in the first quarter, so I will not repeat it here. Regarding your question about the new characteristics of the consumer market, they can be summarized as follows:  

First, growth has been stable. This is primarily reflected in bulk consumption such as automobiles, home appliances, and home furnishing. In the first quarter, new car sales grew 10.6% year on year to 6.72 million, including new energy vehicles, which increased by 31.8% year on year. Retail sales of home appliances by businesses above designated size grew 5.8% year on year, 1.1 percentage points higher than total retail sales. The building materials sector also saw a positive turnaround, with the growth rate of retail sales increasing from -7.8% at the end of last year to 2.4% in the first quarter.

Second, demand has been strong, particularly evident in service consumption. In the first quarter, retail sales of services grew by 10.0% year on year, six percentage points higher than goods. Per capita consumption expenditure on services grew by 12.7% year on year, accounting for 43.3% of per capita consumption expenditure. Catering revenue grew by 10.8% year on year to 1.34 trillion yuan.

Third, there have been multiple highlights, mainly reflected in new types of consumer spending. In the first quarter, China's online retail sales totaled 3.3 trillion yuan, up 12.4% year on year. Online retail sales of physical goods rose 11.6% to 2.8 trillion yuan, contributing 23.3% to China's total retail sales. The concept of green consumption has also gained popularity among consumers, with sales of green and organic food by key retail enterprises monitored by the ministry growing by about 14% year on year.

These are the three major characteristics of the consumer market in the first quarter: stable growth in bulk consumption, strong demand for services, and multiple highlights in new types of consumer spending.

China has launched a year-long program to stimulate consumption this year, as outlined in the government work report. Following the decisions and plans of the CPC Central Committee and the State Council, we actively promote relevant work. The overall approach involves adopting relevant policies and organizing activities to promote consumption. Regarding policies, we will adopt a problem-oriented approach, focusing on addressing bottlenecks and difficulties in the circulation sector. We will introduce a series of policies to boost consumer confidence. We have already introduced policies concerning trade-in of consumer goods, digital consumption, catering consumption, rural e-commerce, and recycling of renewable resources. Moving forward, we will continue to focus on the development of international consumption center cities, the innovative development of service consumption, and the construction of a modern commercial circulation system, and we will continue to introduce relevant policy measures.

In terms of activities, as previously introduced to the press, we are organizing a series of pro-consumption activities throughout the year to benefit all. We will arrange weekly scenarios, monthly events, and seasonal themes. When organizing these activities, we focus on four aspects. First, we organize activities during festivals and holidays. For example, we have already held pro-consumption events during the Spring Festival and Qingming Festival, and plan to organize such events during the upcoming May Day holiday as well, with enriched festive atmosphere. Second, we are emphasizing the integrated development of industries. Everyone knows that various sectors, including commerce, tourism, culture, sports and health, are moving toward integrated development. Following the Spring Festival, the 110th China Food and Drinks Fair was held in Chengdu, mixing exhibitions with tourism, music, and gourmet food to promote consumption in different scenarios. Third, we are highlighting key product categories. For key products related to trade-ins for old consumer goods, such as automobiles, home appliances and home furnishing, we will continue to carry out promotional activities. Fourth, we are emphasizing local characteristics. For example, Beijing's consumption season highlights local culture and cuisine, while Guangxi's "33 Consumption Festival" has fully integrated local ethnic cultures. Meanwhile, Fujian's pro-consumption campaign has showcased local cultural heritage. Thank you. 

CCTV:

The World Trade Organization (WTO) has published full-year data on merchandise trade for 2023. China stabilized its market share in imports and exports, maintaining its position as the world's largest nation in goods trade for the seventh consecutive year. How does the Ministry of Commerce view the current foreign trade situation and its future outlook? Thank you.

Guo Tingting:

Thank you for your question. In 2023, despite facing multiple difficulties and challenges, China withstood pressure and maintained its size and market share in foreign trade, showing strong growth resilience. China has remained the top trading country in goods for the seventh straight year. In 2023, its share of world exports stood at 14.2%, the same as in 2022. The country's share of world imports reached 10.6%, slightly higher than in 2022. In the first quarter of this year, China's imports and exports of goods rose by 5%, maintaining steady recovery and growth. Achieving such results amid slower global trade growth was no easy feat.

Looking ahead to the next phase of foreign trade, we generally feel that there are both opportunities and challenges. The opportunities can be summarized into the following three positives aspects:

First, the domestic economy's recovery and growth have been boosted, establishing a solid foundation. Foreign trade performance is closely related to the domestic economy. In the first quarter, the national economy grew by 5.3%, and the value added of industrial enterprises above designated size increased by 6.1%. This provides a solid foundation for consolidating the fundamentals of foreign trade.

Second, business expectations continue to improve, with increasing confidence. In March, the Purchasing Managers' Index (PMI) for China's manufacturing sector reached 50.8%, re-entering the expansion zone. A recent survey of over 20,000 exhibitors at the Canton Fair showed that 81.5% of the respondents reported an increase or stability in their order books, a 16.8 percentage point increase compared to the previous session. Enterprises are relatively optimistic about their order situations and are more actively exploring international markets.

Third, key industries are stabilizing and showing positive momentum, with increasing strength. After a downward cycle lasting two years, the electronic information industry is gradually recovering in terms of trade in its main products. In the first quarter, China's integrated circuit industry grew by 24.2%, imports increased by 14.3%, and exports of computers and components grew by 8.6%. This also demonstrates our capabilities in industrial support and integration.

From the perspective of challenges, they are notably reflected in three areas:

First, there is a slowdown in the expected growth of external demand. Recently, the World Trade Organization released its "Global Trade Outlook and Statistics" report, lowering the projected growth rate of world merchandise trade volume for 2024 to 2.6%, 0.7 percentage point lower than the forecast in October last year.

Second, the risks from geopolitical conflicts are increasing. The Ukraine crisis has experienced prolonged fluctuations, the impact of the Palestinian-Israeli conflict continues to spill over, and the blockade of the Red Sea route has already altered global shipping patterns, thereby increasing risks to oil supply. Additionally, this year is a "super election year" globally, bringing various uncertainties.

Third, there is a rising trend of trade protectionism. In our surveys and discussions with foreign trade enterprises, many of them have expressed that certain countries are politicizing trade issues, establishing trade barriers, and disrupting global industrial and supply chain stability. As a result, enterprises face increased interference and greater difficulties in market development.

Currently, in accordance with the decisions and plans of the CPC Central Committee and the State Council, the Ministry of Commerce is actively collaborating with local governments and departments to develop and implement a series of targeted, practical and effective measures to support stable foreign trade. These measures are designed to enhance the capabilities of foreign trade enterprises and expand their market presence. We are confident in our ability to achieve this year's goals of improving quality, increasing quantity, and ensuring the stability of foreign trade. We are committed to contributing to the promotion of sustained economic recovery and long-term development. Thank you.

China Daily:

In recent years, we have observed changes in the structure of China's export products. How does the Ministry of Commerce view the issue of trade structure, and what is the outlook for trade growth this year? Thank you.

Li Xingqian:

Thank you for your questions. In recent years, the structure of China's exports has been undergoing optimization and upgrading. In terms of product structure, there has been positive momentum in exporting high-tech, high value-added, and environmentally friendly products that are driving green and low-carbon transformation. Taking the "new trio" of electric vehicles, lithium-ion batteries, and photovoltaic products as examples, their combined exports grew by 88.4% in 2022 and increased by 27.6% in 2023, surpassing 1 trillion yuan in export scale. At the same time, we see many Chinese foreign trade enterprises focusing on enhancing their independent research and development capabilities and advancing digitalization, smart transformation, and green transformation. This has led to the formation of an innovation advantage in China's manufacturing industry.

From the perspective of trade modes, the proportion of China's general trade exports has continued to increase, reaching 64.6% in 2023. This reflects the ongoing enhancement of China's independent development capabilities in foreign trade. The processing trade is transitioning from traditional manufacturing processes to higher value-added activities like design and maintenance. In 2023, high-tech products accounted for 53% of China's total exports in the processing trade.

From the perspective of market distribution, our trading partners have become more diverse. In 2023, the proportion of China's exports to emerging markets rose to 55.3%. We have also strengthened trade ties with countries participating in the Belt and Road Initiative. In the first quarter of this year, the proportion of exports to these countries further increased to 46.7%.

Considering the export performance of the first quarter, we see three sectors with innovative vitality and potential for sustained growth.

First, the foundation for exports of complete sets of equipment is robust. Chinese industries, such as automotive and equipment manufacturing, have consolidated innovative achievements along both long and complete industrial chains. If some components or functional systems are considered individually, they are full of creativity and technological sophistication. I'll briefly mention two examples: in-car voice systems in automobiles are rapidly advancing toward the domain of AI. Meanwhile, forklifts commonly used in factories and warehouse logistics are progressively becoming electrified and unmanned, undergoing iterative upgrades.

Second, the demand for smart products is growing. Chinese export products increasingly employ special and sophisticated technologies to produce novel and unique products, delving deeper into segmented fields. Smart products, such as robots, are favored by consumers. In the household appliance sector, there has been an emergence of floor-cleaning robots, pool-cleaning robots, lawn-mowing robots, and high-rise building window-cleaning robots in response to demand, each featuring its own advanced technology. In the field of industrial robots, China is also an important exporter and application market. According to statistics from the International Federation of Robotics, the annual average growth rate of robot installations in China from 2017 to 2022 was 13%. Customs data indicate that China's industrial robot exports increased by 86.4% in 2023.

Third, low-carbon, energy-saving, and environmentally friendly products are highly popular. Currently, environmentally friendly food trays and straws made from biodegradable materials have replaced disposable plastic products and become the market's mainstream choice. Biodegradable tableware made from bagasse is well-received in exports, resulting in bagasse becoming more expensive than sugarcane. In some areas, such as air-source heat pump equipment, which is more energy-efficient, it can save energy by 75% compared to traditional electric heating or coal-fired boilers. These products are selling well in the European market. New textile fabrics that can be dyed without water save water and energy in the dyeing process and do not emit wastewater, which customers deeply appreciate.

At the same time, we need to recognize that traditional labor-intensive products still hold competitive advantages. In the first quarter, China's export of labor-intensive products increased by 9.1% year on year; among them, exports of textiles and garments, plastic products, and furniture and parts grew by 5.4%, 14%, and 23.5%, respectively. "Made in China" is currently evolving into "Created in China." New export growth poles will continue to emerge, and we are confident in achieving this year's goals of steadily increasing the volume and enhancing the quality of foreign trade. Thank you.

CMG Voice of China: 

Since last year, data on China's foreign investment attraction have shown certain fluctuations. How does the Ministry of Commerce view the current situation of investment attraction? What further steps will be taken? Thank you.

Ji Xiaofeng: 

Thank you for your questions. From the perspective of overall global, transnational investment and the economic situation in various countries, fluctuations in FDI are a normal phenomenon. To comprehensively assess the situation of foreign investment attraction in China, we need to consider not just changes in scale but, more importantly, the optimization of the structure and its prospects.

First, let's consider changes in the scale of investment attraction. In the first quarter of this year, China attracted over 300 billion yuan in foreign investment. During the same period last year, China reached its highest quarterly volume of foreign investment attraction. There has been a slight decrease this year due to the impact of a high base. Additionally, in the first quarter of this year, China saw the establishment of 12,000 new foreign-funded businesses, an increase of 20.7% year on year, maintaining the trend of rapid growth in new enterprises since last year. Foreign investment typically involves a process from project signing and company registration to construction completion and operation commencement. As foreign capital arrives progressively with the pace of project construction, fluctuations in data during this process are commonly observed. The increase in the number of new enterprises is an indicator and will support future investment inflows.

Second, let's consider the optimization of the investment structure. In the first quarter of this year, the utilized foreign investment in China's manufacturing industry reached 81.06 billion yuan, with 37.76 billion yuan being attracted to the high-tech manufacturing sector. Both figures accounted for a higher proportion of total investment attraction than in the same period last year, increasing by 2.3 and 2.2 percentage points, respectively. Investment attraction growth in some advanced manufacturing sectors has also been relatively fast. For example, attracted investment in the medical equipment manufacturing industry remarkably increased by 169.7% year on year, fully demonstrating the continuous optimization of China's investment attraction structure.

The basic trend of China's economic recovery and long-term improvement generally remains unchanged. With the continuous advancement of China's new quality productive forces and the gradual effects of a series of policies aimed at stabilizing the economy, promoting openness, and attracting foreign investment, the conditions and environment for foreign investment in China are expected to continue improving. Recently, the American management consulting firm Kearney's Global Business Policy Council released its 2024 Foreign Direct Investment Confidence Index (FDICI). In this index, China rose from seventh to third place last year, reflecting multinational corporations' continued willingness to expand their investments in China.

Next, MOFCOM will thoroughly implement the arrangements of the Central Economic Work Conference and the government work report, mainly advancing our work in five areas. First, we will relax foreign investment access. We will downsize the negative list for foreign investment access in a reasonable way, comprehensively abolishing access restrictions in the manufacturing sector and easing market access in the medical, telecommunications and other service sectors. We will also revise the catalogue of industries for encouraging foreign investment, add and supplement encouraging items, and provide broader space for foreign investment in China by "reducing restrictions and increasing incentives." Second, we will enhance investment promotion. We will ensure the success of major events with the theme of "Invest in China," strengthen our promotional efforts at abroad to attract foreign investment, boost targeted investment in areas such as advanced manufacturing, strategic emerging industries, digital and intelligent technologies, and green technologies, and continuously optimize the industrial structure of foreign investment. Third, we will strengthen services and support. We will leverage the role of special task forces for crucial foreign-funded projects, make good use of roundtable discussions for foreign-funded enterprises as well as the system for collecting and handling their issues and demands, communicate with these enterprises in a candid and practical manner, and promptly address their difficulties and problems. Fourth, we will build open platforms. We will align with international high-standard economic and trade rules, implement the plan to deepen the construction of the Integrated National Demonstration Zone for Opening up the Services Sector, and introduce a new round of open and innovative policy measures in other pilot provinces and municipalities in due course. As a series of activities will be held this year to commemorate the 40th anniversary of the establishment of the first batch of national economic and technological development zones, we will promote the innovation and upgrading of these zones and strengthen their role as platforms for attracting investment. Fifth, we will optimize the investment environment. Recently, the "24 Measures for Foreign Investment" have been continuously implemented, including policies to promote cross-border data flow and to optimize payment services, which have been widely praised by foreign-funded enterprises. Next, we will continue to promote the implementation of these measures, conduct another evaluation on it in due course, and truly transform policy measures into tangible benefits for foreign-funded enterprises. Thank you.

Nanfang Daily, Nanfang Plus:

Recently, MOFCOM and other departments released the Action Plan to Facilitate and Encourage Trade-ins of Consumer Goods. Could you please elaborate on how this action plan will be implemented? And what tangible benefits can ordinary consumers expect from this plan?

Xu Xingfeng:

Thank you for your interest in trade-ins of consumer goods. With the approval of the State Council, MOFCOM and 13 other departments issued the action plan and held a work promotion meeting jointly with relevant departments. We are working together with other departments and local governments to promptly implement the plan. Currently, Guangdong, Zhejiang, Shandong, Hunan, Shanxi and other regions have already issued detailed measures. Automobile, home appliances and furnishing companies involved in trade-ins have responded positively and launched preferential packages. We are also organizing local events, as part of the "National Campaign on Consumer Goods Trade-ins," across the country to make the policy widely known. The first event was launched in Haikou during the 4th China International Consumer Products Expo. We will work with relevant departments to specify policy measures and improve operational procedures as soon as possible, in a bid to make the process simpler and more precise.

You are concerned about the benefits consumers can expect from trade-ins. The action plan is a major decision made by the CPC Central Committee and the State Council, and we are actively promoting its implementation. As trade-ins involve millions of households and the vital interest of the people, we respect consumers' wishes and respond to their demands in policy design, aiming to give them a sense of gain. The benefits are reflected in the following aspects.

When it comes to automobiles, selling or scrapping an old car and buying a new one is an action by the people. We will expand and extend this point throughout the entire chain of automobile circulation and consumption, aiming to make our citizens more satisfied. Specifically, the first thing is that buying cars will be more cost-effective. Currently, companies are responding actively and offering promotional discounts. Policy packages and a combination of measures will be introduced, offering benefits from various aspects such as finance, taxation, credit and insurance to reduce the cost of buying cars, making them more affordable. Second, more convenient services will be provided for the people to use cars. We will improve infrastructure such as charging stations, parking facilities and intelligent transportation. We will carry out pilot reforms on automobile circulation and consumption, supporting the development of industries focused on car modification, leasing, RV camping, sports events and classic cars. Third, selling cars will be more worry free. We will advance nationwide efforts to rescind all local policies that restrict sales of non-local second-hand vehicles, in order to stimulate demand for second-hand cars and enable car owners to sell their cars at more satisfactory prices. A second-hand car information inquiry platform will be established to make car information more transparent and car prices more reasonable, allowing people to buy second-hand cars with the same confidence as buying a new one. Consumers will be happier if they can buy used cars with better conditions and more guaranteed after-sales services at the same price. Fourth, it will be more convenient to scrap cars. The final step in automobile circulation is scrapping. We encourage dismantling companies to collect cars door-to-door so that it's more convenient for car owners to surrender their to-be-scrapped vehicles for disposal. Overall, it will be more cost-effective for consumers to buy cars, and more convenient services will be provided for them to use, sell and scrap cars.

In terms of home appliances, home furnishing and decoration: First, we will prioritize the convenience of consumption. People have no place to put old furniture they want to keep, there is no one to collect household appliances that people want to throw away, and people do not have anywhere to stay temporarily when renovating their homes: these are all difficulties facing ordinary people in their daily lives. We will encourage the creation of "storage rooms," "recycling stations" and "relocation houses," as well as "internet + recycling" and "one-stop collection of old items, delivery of new ones, disassembly and assembly" to take the worry out of renovation. Second, we will prioritize information transparency. Nowadays, people are living healthier lives and want green building materials, while elderly people require senior-friendly renovations. However, some consumers do not know which building materials are green and which elderly-friendly products are up to the mark. We will work with relevant departments to initiate activities to introduce green building materials into rural areas, dynamically improve the catalog of elderly-friendly home furnishings, and promote "demonstration home decoration rooms" within shopping malls, communities and platforms so that consumers can obtain information through multiple channels. Third, we will prioritize smart technologies and convenience, with a focus on smart homes. Nowadays, smart homes are rapidly developing and have entered thousands of households. However, there is still insufficient compatibility between smart products of different brands, and sometimes people have too many remote controls. Next, we will work with relevant departments to speed up the improvement of compatibility standards and promote the application of smart products in more living scenarios. Fourth, we will prioritize living environment optimizations. We will organize and carry out actions to promote safe home improvements in communities and improve after-sales service for home appliances, so as to boost satisfaction and confidence in consumption.

Next, we will continue to listen widely to opinions and suggestions of various parties, and do our best so that consumers can get genuine benefits. We also welcome friends from the media and consumers to supervise the implementation and effects of the policies. Thank you. 

The Poster News APP:

MOFCOM has established a roundtable mechanism for foreign-funded enterprises, and organized and convened a number of roundtable meetings for foreign enterprises this year. Could you please introduce the results of the roundtable meetings for foreign enterprises in providing them with service guarantees? What are the plans going forward?

Ji Xiaofeng:

Thank you for your questions and interest in the roundtable events. In accordance with the plans of the CPC Central Committee and the State Council, in July 2023, MOFCOM relied on the foreign trade and investment coordination service mechanism to upgrade and establish a roundtable meeting system for foreign-funded enterprises to further strengthen regular communication and exchanges with foreign-funded enterprises and foreign business associations. The roundtable meetings do not set restrictions and foreign companies are encouraged to speak freely. After the meetings, the problems and demands reported by the companies are compiled and managed with follow-ups on the results, which has been highly praised by foreign-funded companies. Overall, the roundtable meetings have played three kinds of roles:

First, the roundtable meetings built unimpeded channels of expression and fully listened to the opinions and suggestions of enterprises. So far, MOFCOM has held 24 roundtable meetings for foreign-funded enterprises, with more than 600 foreign-funded enterprises and foreign business associations participating. To date, nine meetings have been held this year, including roundtable meetings held overseas to communicate with foreign companies in Germany, France and Denmark, and roundtable meetings held domestically and themed around such fields as medicine and consumer goods. At the roundtable meetings, MOFCOM, together with relevant departments, acquired detailed understandings of the issues, demands, opinions and suggestions of foreign-invested enterprises from various countries and industries, through face-to-face, point-to-point consultation, providing an important reference for formulating policies and optimizing services.

Second, the roundtable meetings have strengthened policy interpretation and fully publicized China's business environment. Since last year, we have relied on activities such as roundtable meetings to explain comprehensive policies, such as the 24 specific pro-foreign investment measures and the new action plan issued by the General Office of the State Council to attract foreign investment, special policies targeting cross-border flows of data and environmental protection, and regional opening-up policies including the ones for promoting integrated economic development of Chengdu and Chongqing. These efforts allow foreign-funded enterprises to have a more comprehensive and in-depth understanding of China's major policies and measures and fully seize new investment opportunities in China.

Third, the roundtable meetings have adhered to a problem-oriented approach and coordinated efforts to resolve pressing difficulties and problems. Based on the pains and difficulties reported by foreign-funded enterprises at the roundtable meetings, MOFCOM established a list of issues and worked with relevant departments to tackle the problems. The establishment of the roundtable mechanism has promoted multiple departments to introduce measures to benefit enterprises, including facilitating foreigners to come to China, outlining clear requirements for cross-border flows of data, and extending preferential policies on tax-deductible allowances and subsidies for foreign nationals in accordance with relevant national regulations.

Moving forward, MOFCOM will give further play to the role of the foreign investment enterprise roundtable meeting system, and build the roundtable meetings into an important platform for candid communication, pragmatic exchanges and problem-solving between the government and enterprises. Thank you.

Xie Yingjun:

The final question, please.

China News Service:

Green and digital transitions represent new driving forces and emerging trends in foreign trade development. Could you please elaborate on the specific manifestations of these eco-friendly and digital practices in the current foreign trade landscape? What measures will the Ministry of Commerce take to further enhance green and digital transitions? Thank you.

Li Xingqian:

Thank you for your questions. Green and digital transitions are shaping the direction and future of international trade development, serving as pivotal drivers for innovation and structural upgrading in foreign trade.

In terms of promoting green trade development, Chinese foreign trade enterprises are at the forefront of global carbon reduction practices and actively promote the development of green and low-carbon products and services. In the design, research and development phase, Chinese foreign trade enterprises carry out green product evaluation and certification based on green design product standards, emphasizing emissions reduction, low carbon, and recyclability of the products. During raw material procurement, recyclable resources and degradable materials are increasingly used in foreign trade products. In the manufacturing process, Chinese enterprises actively participate in trading of green electricity and green certificates, strengthen energy conservation and carbon reduction management, and conduct technological process improvements, so as to reduce the carbon footprint of foreign trade products. Taking Zhejiang province as an example. In the first quarter of this year, Zhejiang's green certificate trading volume was equivalent to 5.94 billion kilowatt-hours of electricity. In the logistics and warehousing sector, an increasing number of enterprises have begun to use new energy heavy-duty trucks and ships for transportation, which helps reduce carbon emissions in foreign trade transportation and delivery.

In the field of green development, we need to accomplish tasks in four aspects. First, we need to focus on popularization. We should provide training for enterprises, explain regulations, and interpret policies to enhance the green and low-carbon awareness and development abilities of foreign trade enterprises. Second, we need to build a platform. We need to provide a regular public service platform for society. Third, we should promote typical examples. We need to select typical cases nationwide and promote experiences and practices. Fourth, we need to foster cooperation. We should strengthen communication and consultations through bilateral and multilateral channels to expand the market space for green products.

In terms of enhancing the level of digitalization in trade, digital technologies are currently penetrating the entire process and various phases of trade, injecting new impetus into the development of international trade. In the production phase, traditional production lines have been upgraded and transformed with intelligent technology, significantly improving customized, low-volume production capabilities. In the marketing stage, digital technology helps our foreign trade enterprises accurately target customers, lower transaction costs, and enhance their ability to expand markets and cultivate brands. In the logistics phase, after digitalization, by using electronic trade documents, the document processing speed has been significantly improved by 80%, and the operating cost has been reduced by 30%. For customer services, Chinese foreign trade enterprises have been using remote supporting tools and conducting smart diagnosis, which greatly improved the efficiency of after-sales services such as preparing spare parts and distribution. In addition, we collaborate with relevant departments to promote digital upgrades in various aspects of trade, including improving customs clearance efficiency and providing more convenient financing support for foreign trade enterprises.

In the field of trade digitalization, we need to focus on four key areas. First, we should encourage more trade entities to use electronic trade documents and promote interconnectivity between enterprises on the document platform. Second, we need to accelerate the building of the Guangdong-Hong Kong-Macao Greater Bay Area as a pilot zone for global trade digitalization and explore connectivity of digital infrastructure, rules and standards to speed up the digital integration of the entire trade chain. Third, we need to nurture leading enterprises in digital transformation, and provide digital solutions for small- and medium-sized enterprises. Fourth, we will leverage bilateral and multilateral platforms to strengthen digital trade cooperation with our trading partners, and jointly explore more application scenarios of digitalization in the trade sector. Thanks.

Xie Yingjun:

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

Translated and edited by Xu Xiaoxuan, Huang Shan, Yan Xi, Zhang Junmian, Cui Can, Liu Sitong, Liu Caiyi, Li Huiru, Mi Xingang, Zhang Rui, Wang Ziteng, Wang Wei, Yan Bin, Yan Xiaoqing, 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. Zhu Hexin, deputy governor of the People's Bank of China (PBC) and administrator of the State Administration of Foreign Exchange (SAFE)

Ms. Wang Chunying, deputy administrator and spokesperson for SAFE

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

Ms. Zhang Wenhong, a person in charge of the Statistics and Analysis Department of PBC

Chairperson:

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

Date:

April 18, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Zhu Hexin, deputy governor of the People's Bank of China (PBC) and administrator of the State Administration of Foreign Exchange (SAFE), and Ms. Wang Chunying, deputy administrator and spokesperson for SAFE, to brief us on China's financial performance and foreign exchange receipts and payments data in the first quarter of 2024, and to also take your questions. Also present today are Mr. Zou Lan, director general of the Monetary Policy Department of PBC, and Ms. Zhang Wenhong, a person in charge of the Statistics and Analysis Department of PBC. 

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

Zhu Hexin:

Friends from the media, good afternoon. Since the beginning of this year, PBC and SAFE have adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and firmly implemented the guiding principles of the Central Economic Work Conference and the Central Financial Work Conference as well as the deployment of the "two sessions" (the annual gatherings of the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference). We have comprehensively applied various policy tools to support the economic recovery. First, we lowered the required reserve ratio by 0.5 percentage points, and released more than 1 trillion yuan of medium- to long-term liquidity, maintaining a reasonably ample liquidity in the banking system. Second, we appropriately cut interest rates, reducing re-lending and re-discount interest rates for the rural sector and small businesses by 0.25 percentage points . We guided the cut of over-five-year loan prime rate (LPR) by 25 basis points , with the decrease exceeding market expectations. Third, 500 billion yuan of Pledged Supplementary Lending (PSL) was issued, supporting three major projects, namely the construction of government-subsidized housing, the building of dual-use public infrastructure that can accommodate emergency needs and the redevelopment of urban villages. Fourth, we launched a 500-billion-yuan re-lending program for scientific and technological innovation and technological transformation, and fully implemented the decisions and deployments made by the CPC Central Committee and the State Council to advance a new round of large-scale equipment upgrading and consumer goods trade-in programs . Fifth, we promoted stable performance of the foreign exchange market. We adopted comprehensive measures to keep the RMB exchange rate basically stable, and enhanced policy support for foreign exchange facilitation in cross-border trade and investment. In addition, we steadily promoted high-level foreign exchange opening up and facilitated the development and reform of foreign exchange business in banks in an orderly manner. 

As of now, the policies have yielded notable results, mainly reflected in the following aspects. First, the total finance volume has increased steadily. By the end of March, aggregate financing grew by 8.7%, with an addition of 12.9 trillion yuan in the first quarter. The M2, or broad money, increased by 8.3%, with an addition of 12.5 trillion yuan in the first quarter. The balance of RMB loans grew by 9.6%, with an increase of 9.5 trillion yuan in the first quarter. These figures indicate that the financial sector maintains stable support for the real economy. Second, financing costs experienced a steady decline. In the first quarter, the interest rates on new enterprise loans stood at 3.75%, down by 0.22 percentage points year on year. Particularly, the interest rates on new individual housing loans registered 3.71%, down by 0.46 percentage points year on year. Third, the credit structure continued to improve. By the end of March, loans provided by financial institutions to high-tech manufacturing industries, inclusive loans to micro and small businesses, loans to the rural sector and loans to the private sector grew by 27.3%, 20.3%, 13.5%, and 10.7% year on year, respectively. These rates were all significantly higher than the overall loan growth rate of 9.6%. Fourth, credit maintained a steady pace. In the first quarter of 2023, financial institutions exhibited rapid loan issuance. However, efforts have been made since the second half of last year to guide a balanced distribution of credit, easing the phenomenon of financial institutions rushing to meet deadlines. In the first quarter of this year, the proportion of loan issuance was returning to the historical average level, ensuring ample room for credit growth in the next three quarters. Fifth, the foreign exchange market demonstrated strong resilience. There is considerable focus on the steady increase of RMB against a basket of currencies, with the RMB exchange being stable relative to other global currencies. Additionally, cross-border capital flows were generally balanced, and foreign exchange reserves were generally stable. 

Overall, a series of monetary policies introduced earlier are gradually taking effect, leading to a sustained recovery and a good start for the national economy. There is still room for monetary policy adjustment in the future. We will closely monitor the effects of these policies as well as the progress of economic recovery and goal attainment, thereby judiciously utilizing reserve tools as opportunities arise. 

Ms. Wang will brief you on specific data regarding foreign exchange receipts and payments in the first quarter of this year.

Wang Chunying:

Good afternoon, everyone. Now, I'll brief you on detailed data regarding foreign exchange receipts and payments in the first quarter of 2024. Since the beginning of this year, the external environment has remained complex and fluid, while the Chinese economy maintained recovery momentum. As Mr. Zhu just said, the foreign exchange market demonstrated strong resilience, cross-border capital flows were generally stable and market expectations and transactions remained rational and orderly. 

As for specific data, in the first quarter of this year, the cross-border receipts and payments by non-banking sectors stood at $1.6586 trillion and $1.6555 trillion, respectively, resulting in a surplus of $3.1 billion. Foreign exchange settlement and sales by banks registered $542.2 billion and $567.0 billion, respectively, creating a deficit of $24.8 billion . Here are five specific characteristics:

First, cross-border capital posted small amounts of net inflow. In the first quarter, banks registered a surplus in the balance of foreign-related receipts and payments on behalf of clients. Cross-border capital saw net inflow in January and February, however net outflow occurred in March. This result can be attributed to seasonal factors. In particular, after the Spring Festival, foreign trade enterprises resumed production and procured raw materials in large amounts. Driven by increasing demand for payments for imports, cross-border payments rose. Although, cross-border receipts are expected to grow after products are exported. 

Second, banks saw a small deficit in foreign exchange settlement and sale business. In the first quarter, the monthly average deficit reached $8.3 billion. The bank foreign exchange settlement on behalf of clients decreased by 3% year on year; and foreign exchange sales were almost the same as for the same period in 2023. Currently, enterprises enjoy greater convenience in accessing RMB funds and there are more diverse channels. For example, through a type of foreign exchange swap, enterprises can convert part of foreign capital into RMB for use and agree to convert it back in the future, to replace and reduce a portion of foreign exchange settlement for the current period. 

Third, the foreign exchange settlement ratio and the foreign exchange sales rate both fell but were generally stable. Enterprises showed reasonable willingness in foreign exchange settlement and sales. In the first quarter, the foreign exchange settlement ratio, a measure of customers' willingness to settle foreign exchange, stood at 62.2%, a slight fall of 1.6 percentage points year on year, showing somewhat weakened demand; and the foreign exchange sales rate, a measure of customers' willingness to buy foreign exchange, stood at 66.5%, down 1.8 percentage points, showing that the willingness to buy foreign exchange did not continue to rise. In recent years, domestic entities gradually got used to the two-way fluctuations of RMB exchange rates, with expectations for forex rates being more stable. Enterprises' foreign exchange settlement and sales mainly depend on actual demand. Foreign exchange transactions have become substantially more reasonable. 

Fourth, the scale of forex derivative transactions continued to expand. Business entities' awareness of exchange rate risk neutrality continued to improve. In the first quarter, enterprises managed exchange rate risks through forex derivatives, including forwards, swaps and options, to the amount of $395.8 billion, up 23% year on year; and the proportion of enterprises conducting hedging operations was 28.1%, up 3.2 percentage points from the same period in 2023. In January and February, more than 5,000 enterprises received forex rate risk hedging services for the first time. 

Fifth, the volume of China's foreign exchange reserves remained basically stable. As of the end of March, China's forex reserves reached $3.2457 trillion, a $7.7 billion increase from the end of 2023. The increase is mainly influenced by changes in forex rates and asset prices along with other factors impacting the valuation. 

That is all from me on forex receipts and payments in the first quarter of 2024. 

Shou Xiaoli:

Thank you both for your introductions. Now the floor is open for questions. Please identify the news outlet you work for before asking your question. 

CCTV:

My questions are concerning the vitality of business entities. In order to invigorate business entities, this year's government work report came up with an array of arrangements. What concrete measures have been taken to provide convenient financing services for business entities? And what specific results have been achieved so far? Thank you. 

Zhu Hexin:

Thank you for your questions. They are good ones. Financial institutions and financial policies all aim to serve the real economy and the healthy development of business entities. General Secretary Xi Jinping pointed out that the financial sector should insist on its fundamental purpose of supporting the real economy. To examine the effectiveness of financial support for the real economy, we should understand how convenient it is to access financial services and how satisfied business entities are with the services. Operating in China's super large economy, business entities should better leverage the domestic and international markets and resources. Since the beginning of this year, the PBC and SAFE have earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, insisted on serving the real economy as the fundamental purpose, and focused on improving convenience of services for business entities, making efforts and achieving remarkable results in the following aspects: 

First, streamlining government administration, delegating power and continuing to improve the business environment. We made headway in optimizing approval procedures, reformed 10 items related to enterprise business licenses, amended regulations and normative documents, and implemented the notification and commitment system for certain administrative approval items. We improved services regarding changes to basic accounts and cancellation of bank accounts, and promoted one-stop government services. Also, we further improved government transparency and emphasized the need to fully listen to the ideas of business entities while collecting suggestions for policy making. 

Second, focusing on private and micro, small and medium enterprises and clearing the way for channeling funds into the real economy. In terms of loans, we fully exerted the roles of refinancing, rediscounts and instruments that support inclusive loans to micro and small businesses. We guided financial institutions to increase loans to private and micro, small and medium enterprises to reduce their financing costs. Related data was introduced in the opening remarks. In general, the growth of loans to private businesses and micro and small businesses were both noticeably higher than the average growth of all kinds of loans. In terms of debts, we removed obstacles so enterprises can issue bonds for financing smoothly, and more corporate bonds were issued. In the first quarter of this year, more than 3.65 trillion yuan of debenture bonds were issued, up 3.5% year on year. As of the end of March, instruments supporting private enterprises in bond financing had supported 143 private businesses in issuing more than 251.5 billion yuan of bonds. There are large numbers of micro and small businesses and private enterprises, and they use a lot of bills. In this regard, we optimized the bill business and related functions to help enterprises accelerate capital turnover and ease the pressure caused by invested funds. In the first quarter, more than 144,000 micro, small and medium enterprises issued bills, accounting for 93.2% of all enterprises that issued bills; and 169,000 micro, small and medium enterprises went through bills discounted transactions, accounting for 96.5% of all enterprises conducting such transactions. 

Zhu Hexin:

Third, integrating efforts in both domestic and foreign currencies, and facilitating cross-border trade and investment. Cross-border RMB transactions continue to become more convenient. We have introduced a range of supportive policies for cross-border RMB transactions, including initiatives to stabilize foreign trade and investment, foster innovative offshore trade practices, facilitate new forms of foreign trade, and digitize capital account transactions. At the same time, we are advancing pilot projects for integrated domestic and foreign currency fund pools in an orderly manner. In the first quarter, nearly 30% of China's cross-border settlements for goods trade were conducted in RMB. For four consecutive months, the RMB has held its position as the fourth global payment currency. Notably, data from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) indicates a further increase in the share of RMB, reaching nearly 4.7%.

Measures aimed at easing foreign exchange transactions have yielded significant results. Specifically, they involve optimizing the processing of foreign exchange receipts and payments in trade. We guide prudent and compliant banks to provide more convenience for high-quality enterprises regarding their forex receipts and payments in trade. In the first quarter, transactions totaling over $300 billion were facilitated through streamlined procedures. Recently, we have introduced six policy measures to enhance the registration and management of foreign trade enterprise directories and simplify trade-related receipts and payments procedures for companies operating within special customs supervision zones. Notably, the registration and management of directories of enterprises involved in trade-related forex receipts and payments, previously requiring the approval from SAFE, are now handled by banks directly, further optimizing foreign exchange procedures for foreign trade enterprises. According to our tally, more than 100,000 business entities are set to be benefited.

We have enhanced the pilot programs for advancing high-quality openness in cross-border trade and investment. Based on the insights gained from previous pilot projects in four regions, we have broadened the scope to include Shanghai, Jiangsu, Guangdong (including Shenzhen), Beijing, Zhejiang (including Ningbo) and the entirety of Hainan province. This expansion is aimed at further streamlining foreign exchange receipts and payments, reducing administrative burdens, cutting paperwork, lowering costs and boosting efficiency for businesses. In the first quarter, transactions totaling nearly $80 billion were processed under the pilot initiative.

We have supported the development of new formats and models in trade. Banks and payment institutions are encouraged to process trade settlements based on electronic transaction information from new business models like cross-border e-commerce. In the first quarter, a total of 230 million related transactions were processed, involving over 1.2 million small and micro businesses.

We have conducted reforms in bank forex business in an orderly manner. This involved redesigning forex business procedures in banks, resulting in a 50%-75% average time reduction in facilitated forex transactions.

Furthermore, we have strengthened promotion of the concept of exchange rate risk neutrality and updated the guidelines for enterprise exchange rate risk management. We have supported enterprises, especially micro, small and medium enterprises, in managing exchange rate risks more effectively. In the first quarter, the proportion of forex derivative transactions in bank-client transactions reached nearly 30%, representing an increase of 3.9 percentage points from the previous year.

Next, the PBC and SAFE will continue raising the quality and standards of financial services. We will intensify policy evaluation and follow-up efforts to ensure that our policies are effective. Our aim is to assess the impact of various policies during implementation, ensuring that they truly empower businesses, enhance their competitiveness, and ultimately guarantee that the policies are translated into action to benefit enterprises and individuals and fully unleash the innate drive and vitality of diverse business entities, supporting high-quality economic development. Thank you.

21st Century Business Herald:

How does the PBC view the M2 balance surpassing 300 trillion yuan at the end of March? What are the PBC's plans for addressing the issue of funds sitting idle or simply circulating within the financial sector? Regarding inflated balance sheets, what measures will the PBC take to curb this trend?

Zou Lan:

I will answer your questions. The broad money supply (M2) balance has now surpassed 300 trillion yuan, reflecting sustained financial support for the growth of the real economy in recent years. China has experienced prolonged periods of rapid economic growth, resulting in continuously expanding economic size and quickly accumulating enterprises capital and residents assets. These changes have fueled increased demand for money. Corresponding to the stage of economic development, China has sustained a prolonged period of rapid, double-digit growth of monetary and credit supply, fostering an environment conducive to economic development. During the three years of the pandemic in particular, in order to stabilize the overall economy, the financial sector intensified its efforts in counter-cyclical adjustments. Overall, the current stock of money is indeed substantial.

China is currently accelerating its economic restructuring, transformation, and upgrading. There have been significant changes in the supply-demand relationship in the real estate sector, and efforts have been strengthened to prevent and control local government debt risks. The economy continues to go light, with credit demand showing signs of weakening compared to previous years, and the credit structure undergoing optimization and upgrading. However, relevant parties are still going through a process of understanding and adaptation to these changes. Some banks remain fixated on pursuing a scale-driven operating model and internal assessments, exceeding the genuine financing needs of the real economy. Additionally, some enterprises, capitalizing on their advantageous positions, utilize low-cost loans for investment in wealth management products and fixed-term deposits or relend to other enterprises. Consequently, their primary business operations fail to generate profits, and financial activities become their main source of income, resulting in funds sitting idle or simply circulating within the financial sector, thereby reducing fund utilization efficiency. In response, this year's government work report timely proposed measures to "prevent funds from sitting idle or simply circulating within the financial sector."

Relevant departments will strengthen efforts to monitor the phenomenon of funds simply circulating within the financial sector and improve management assessment mechanisms. In the future, as the economy undergoes transformation and upgrading, effective demand recovers and social expectations improve, the phenomenon of funds sitting idle or simply circulating within the financial sector will also be alleviated. The current rapid growth in the total money supply may slow down, leading to some disturbances in the data, making it inappropriate for simple year-on-year comparisons. However, this does not imply a reduction in the intensity of financial support for the real economy. Instead, efficient enterprises in genuine need of funds will receive more financing, reflecting an enhancement in the quality and effectiveness of financial support. Thank you for your questions.

CNBC: 

The decline in social financing at the beginning of the year has raised concern among analysts about weak demand. What is the PBC's view of this? Thank you.

Zhang Wenhong:

I will answer this question. Thank you for your question. As Mr. Zhu mentioned earlier, aggregate financing stood at 390.32 trillion yuan by the end of March, representing an 8.7% increase year on year. This growth rate was 0.3 percentage points lower than the end of previous month. Social financing in the first quarter increased by 12.93 trillion yuan, 1.61 trillion yuan lower than the same period in 2023, primarily due to a high base last year. However, looking at data from the same period in previous years, the increase in social financing in the first quarter of this year was still at a relatively high level. From a structural perspective, there are four main features:

First, credit supply remained steady, with financial institutions maintaining a reasonable growth in RMB loans issuance to the real economy. In the first quarter, RMB loans issued by financial institutions to the real economy increased by 9.11 trillion yuan, which was 1.59 trillion yuan less than in 2023, but 773 billion yuan more than in 2022.

Second, financing through issuance of government bonds remained at a reasonable scale. In the first quarter, net financing through issuance of government bonds reached 1.36 trillion yuan. Although the increase narrowed slightly compared with the previous year, it was roughly in line with the average for the same period from 2020 to 2023.

Third, debt financing by enterprises experienced growth. In the first quarter, net debt financing by enterprises was 1.12 trillion yuan, up by 255.1 billion yuan year on year.

Fourth, off-balance-sheet financing, such as trust loans and undiscounted bankers' acceptance bills, also increased year on year. In the first quarter, trust loans and undiscounted bankers' acceptance bills increased by 198.3 billion yuan and 550 billion yuan, respectively, with respective year-on-year growth of 202.4 billion yuan and 81.4 billion yuan.

Overall, the social financing scale growth in the first quarter basically aligned with this year's projected economic growth and CPI increase. Achieving a growth rate of 8.7% on a high base from last year was actually quite robust. Moreover, this year, the PBC has emphasized guiding financial institutions to ensure balanced credit growth. Although there was a slight year-on-year decline in the first quarter in the increase of aggregate financing, it was still at a relatively high historical level, which has bolstered the real economy while enhancing the sustainability of credit growth by avoiding a lack of momentum at excessively high levels. Thank you.

Securities Times:

Since the fourth quarter of last year, foreign institutions have started to significantly increase their holdings of Chinese domestic bonds. Can you introduce the specific situation? And what is the outlook for foreign investors in the Chinese bond market? Thank you.

Wang Chunying: 

Thank you for your questions. Regarding the increase of recent foreign capital inflows into Chinese domestic bonds, I would like to share the following points: 

First, the scale of investment has increased significantly. Last year, the net increase in foreign bond holdings was $23 billion, while in the first quarter of this year, it already reached $41.6 billion. As of the end of March, over 1,129 foreign institutions from over 70 countries and regions had entered the Chinese bond market, with their bond holdings surpassing $570 billion, accounting for approximately 2.6% of the total domestic bond custody, up 0.2 percentage points from late last year. Second, the investment structure remains reasonable. The holding entities, including foreign central banks and financial institutions like banks, increased their holdings of China's domestic bonds in an orderly manner, especially medium- to long-term bonds such as government bonds and policy financial bonds. Our statistics show that between October last year and March this year, foreign investment in bonds with a term of over one year accounted for 56% of the total. Third, the investment yields remain stable. 

Looking ahead, the trend of foreign institutions' investment in China's domestic bonds is likely to maintain steady growth. I would like to elaborate on a few aspects. 

From an economic perspective, first, the macro environment provides support. The underlying trend of long-term economic growth remains unchanged, with various macro policies providing momentum for continued domestic economic recovery, offering foreign investors a sound macroeconomic environment. Second, the investment value is assured. The RMB exchange rate remains stable, and RMB assets have shown unique returns compared to global assets, helping investors diversify risk. Additionally, China's bond market is the second largest in the world, is growing in terms of breadth and depth, and has strong liquidity, which enhances the investment value of RMB bonds. Third, there is demand for global allocation. The use of RMB in global cross-border transactions has been steadily increasing. Mr. Zhu already shared the latest figures. The increasing international influence of RMB makes RMB assets an important choice for foreign investors' global portfolios.

From a policy perspective, the PBC and SAFE will continue to pursue market-oriented, law-based and internationalized development, steadily expanding the opening-up of China's bond market, and facilitating the participation of foreign investors. We are currently working on the following areas. First, we are opening repurchase operations to more foreign institutions, enriching liquidity management tools for foreign investors. Second, we continue to promote the domestic RMB bonds in offshore markets as widely accepted and qualified collateral. Earlier this year, bonds under the Bond Connect program were allowed as the eligible collateral for the RMB liquidity facility. We are also exploring additional scenarios, such as using bonds under Bond Connect as margin for Swap Connect. Third, we are optimizing the mechanisms for overseas institution's direct market entry, Bond Connect and Swap Connect, while continuing to enhance communication and exchange with foreign institutions, creating a better investment environment. Overall, China has continued to improve the institutional opening-up of the financial market, optimized the investment environment and refined services. Foreign capital investing in China's bond market has stable and sustainable room for improvement. Thank you.

Cover News:

The current account has always played an active role in stabilizing China's balance of payments and the foreign exchange market. What is your judgment on the future development trends of China's current account? Thank you.

Wang Chunying:

Thank you for your question. Your question is also our concern. Current account transactions are closely linked to the real economy. The balance of trade in goods and services under the current account is directly involved in national accounts and plays an important role in maintaining the balance of payments.

Based on the situation in the first quarter of this year, the current account surplus remains within a reasonable and balanced range. According to preliminary statistics, the trade surplus in goods and services exceeded US$60 billion in the first quarter, which for the same period in history is at a relatively high level. With this support, the current account had a remaining surplus in this year's first quarter.

Looking ahead, China's current account has the foundation and conditions to sustain a certain scale of reasonable surplus. We would like to analyze it in the following areas:

First, the trade surplus in goods will remain at a relatively high level. We believe there are two supporting factors. On the one hand, there is structural support, and on the other hand, there is support from cyclical factors. First, there are new growth drivers in exports. With the transformation and upgrading of China's industries, the performance of export with high-end manufacturing products, new energy vehicles, etc. has been very impressive this year. Another feature is our trade methods. New trade models such as cross-border e-commerce, market procurement and other new trade formats continue to expand. In addition, the performance of traditional export markets is relatively stable. At the same time, emerging markets along the Belt and Road are rapidly expanding, and our trading partners are more diversified. From the perspective of cyclical factors, the current demand for increasing inventories in developed economies such as the United States has begun to arise, and the global electronic product consumption cycle has bottomed out. These will further boost exports of various Chinese products.

Second, the structure of trade in services has been optimized, and the role of trade in producer services has become more prominent. Travel is an important component in trade- in services. As residents' cross-border activities resume, cross-border travel expenditure is recovering on a regular basis. On the other hand, China has already adopted a visa-free policy for many countries. At the same time, the PBC, the SAFE, among other departments, are promoting more convenient payment services for overseas visitors, a move that is expected to incentivize increased inbound tourism. In the first quarter of this year, China's travel revenue increased by about 30% year-on-year, and it is expected to continue to maintain an upward momentum. More importantly, in recent years, trade in services has developed with high quality, and exports of producer services have increased steadily. Last year, China's trade surplus in telecommunications, computer, information services and commercial services totaled US$57.2 billion, which was a historic high. It has continued to grow in the first quarter of this year. This will also help the balance of trade in services.

In the medium to long term, the trajectory of a country's current account is shaped by its economic structure and the caliber of its manufacturing sector. First, the current account reflects the relationship between savings and investment. At present, China's savings rate is at a relatively high level. It is anticipated that the positive disparity between savings and investment rates will persist, fostering a reasonable surplus in the current account. Second, as China's manufacturing industry is undergoing transformation, upgrading and high-quality development, it will gradually enhance the competitiveness of our products. This shift is expected to reduce reliance on some imported products, underpinning a stable medium- to long-term outlook for the current account, which encompasses trade in goods. We believe that China's current account is well-positioned to maintain a reasonable surplus moving forward. Thank you.

Bloomberg:

The yuan has experienced sustained pressure against the U.S. dollar this year. Despite recent data indicating a pick-up in China's economic momentum, the currency continues to grapple with a range of unfavorable external influences. How do you foresee the yuan exchange rate performance in the second quarter and what steps might the central bank take to maintain a stable exchange rate for the yuan? Thank you.

Zhu Hexin:

Thank you for your questions. As Ms. Wang Chunying said during her introduction, the RMB exchange rate has remained generally stable recently. Since the beginning of this year, as we all know, the market's expectations for a shift in the U.S. Federal Reserve's monetary policy have been recurring. The dollar index recently reached its highest point of over 106, which is a high in the past six months. The turmoil in the international financial market has intensified. Everyone has also noticed that major currencies such as the Japanese yen, euro, and British pound as well as some other emerging market currencies have experienced growing fluctuations. Affected by external shocks, the exchange rate of the RMB against the U.S. dollar has fluctuated. In fact, the RMB against a basket of currencies has remained stable, and there is still a certain appreciation on the basis of stability. As of the end of March, the CFETS (China Foreign Exchange Trade System) RMB Index was at 99.78, an increase of 2.4% compared with the end of the previous year.

The PBC and SAFE are committed to maintaining the basic stability of the RMB exchange rate, and their objective and determination will not change. The RMB exchange rate has a solid foundation and conditions to remain basically stable. The stability of the exchange rate is closely related to the economic situation. In the first quarter, the economy showed signs of recovery and improvement, reflecting the quality of our economic development and international competitiveness. In the short term, the economy had a good start in the first quarter, improving in multiple areas and accumulating positive factors. This effectively offsets external disturbances and provides support for the RMB exchange rate. Meanwhile, the maturity of our foreign exchange market continues to improve, and its resilience is increasing, which means that the trend of the RMB exchange rate will fluctuate in both directions and maintain relative balance. Looking at the medium and long term, there are even more supporting factors. China's economy has entered a stage of high-quality development, achieving balance in international payments. The depth and breadth of the foreign exchange market will further expand, and risk-neutral awareness among market participants will significantly increase. Our research shows that the risk aversion awareness of market participants is constantly strengthening, their ability to manage exchange rate risks using forex derivatives is improving, and cross-border use of the RMB is steadily growing. The basic stability of the RMB exchange rate has solid macro and micro foundations. We have the confidence, conditions and capabilities to maintain the stable operation of the foreign exchange market.

The PBC and SAFE will adopt a China-centric approach, considering both internal and external balance. We will adhere to a managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies for adjustment. We will emphasize the decisive role of the market in determining the exchange rate while continuing to implement comprehensive policies and stabilize expectations. We will closely monitor changes in the foreign exchange market, firmly correct pro-cyclical behaviors, prevent the formation of one-sided expectations and self-reinforcement in the market, and guard against the risk of exchange rate overshooting. We will maintain the RMB exchange rate at a reasonable and balanced level. Thank you for your questions.

Economic Daily:

The Central Financial Work Conference proposed focusing on accomplishing the "Five Major Tasks" and clarifying the future development direction of the financial sector. Could you please clarify what specific new deployments are you referring to? And what are your considerations in the next stage?

Zhu Hexin:

Thank you for your questions. I will answer them. The "Five Major Tasks" have garnered significant attention and high expectations. They are also important measures to implement the directives of the Central Financial Work Conference, and the PBC and SAFE are making every effort to promote them.

The Central Financial Work Conference emphasizes the importance of excelling in technology finance, green finance, pension finance, inclusive finance and digital finance. We refer to these as the "Five Major Tasks," which provide high-quality financial services for socio-economic development. Since the beginning of this year, the PBC has fully implemented the decisions and arrangements of the CPC Central Committee and the State Council. We have pursued a prudent and moderately flexible monetary policy, effectively and precisely leveraging monetary policy tools to address both overall and structural concerns. We have diligently carried out the "Five Major Tasks" and guided financial institutions to increase support for these tasks, as well as key areas and weak links of the national economy, such as the private sector. I would like now to share a set of data with everyone. The credit structure continues to be optimized, with credit growth maintaining a relatively high level. The availability of financing has significantly improved, and financing costs have remained stable with a downward trend. As of the end of March, the year-on-year growth rates for loans in high-tech manufacturing, loans for technology-oriented small and medium-sized enterprises, loans for inclusive small and micro businesses, loans for agriculture-related activities and loans for the private economy were 27.3%, 20.4%, 20.3%, 13.5% and 10.7%, respectively. By the end of 2023, the growth rate of green loans was even higher at 36.5%, significantly surpassing the overall loan growth rate. As mentioned earlier, the overall loan growth rate was 9.6%. The loan approval rate for technology-oriented small and medium-sized enterprises reached 47.9%, more than double the rate in 2017. The number of credit beneficiaries in the inclusive small and micro business sector has exceeded 60 million. In March, the weighted average interest rate for new inclusive small and micro business loans was 4.36%, reaching a historic low. 

With the approval of the central government, the PBC established a credit market department to take the lead in promoting the work of the "Five Major Tasks." Next, we will increase support from various aspects, including policy frameworks, incentives, constraints and the development of financial service capabilities.

First, we will strengthen top-level design and systematic planning to promote the formation of a "1+5" policy framework. The "1" refers to the overall institutional design, while the "5" represents the respective measures of the "Five Major Tasks." We will work together with relevant departments to clarify the work goals, key tasks and implementation pathways. On one hand, we will ensure the effective implementation of policies that have already been introduced. Previously, we, along with relevant departments, issued policies such as the Action Plan to Increase Support for Financing of Technology-oriented Enterprises and the 25 measures to boost financial support for private firms. Recently, the PBC, in collaboration with the National Development and Reform Commission (NDRC) and six other departments, issued the Guiding Opinions on Further Strengthening Financial Support for Green and Low-Carbon Development . On the other hand, while three of the "Five Major Tasks" already have a certain foundation, efforts are being intensified to promote the remaining two tasks, namely, pension finance and digital finance. This will contribute to making the institutional design of the "Five Major Tasks" more robust and the policy framework more solid.

Second, policies alone are not enough. We should guide financial resources to focus on key areas through incentive. We need to give full play to structural monetary policy tools, properly use the newly established 500 billion yuan ($69 billion) relending loans for technological innovation and improvements and support small and medium-sized technology enterprises and key sectors in upgrading to digital, intelligent and high-end technologies. Credit lines for inclusive loans to micro and small businesses will be raised to no more than 20 million yuan per borrower , so as to direct more financial resources to accurately invest in inclusive fields. We need to promote and improve financial, statistical indicators in relevant fields, and study and develop the financial service evaluation in key areas such as technology finance and digital finance.

Third, the implementation should rely on financial institutions. We encourage financial institutions to leverage their strengths in organization, management and technology, to use information methods such as the internet and big data, to enhance the capacities in services associated with technology, sustainability and SMEs, to improve the adaptability and inclusiveness of financial services, to actively promote pilot reforms in regional financial innovation in areas such as technology and green finance and to create a typical service model that can be replicated and promoted. 

With top-level design policies in place, incentive and constraint tools are gradually improved, with financial institutions playing a crucial role in providing vitality and resources to the operating entities. Therefore, all departments should work together, link every step and generate synergy, enabling the operating entities to be more dynamic and healthy.

Focusing on the "five priorities" is an important aspect of promoting high-quality development of financial services for the real economy and crucial part of deepening the structural reform of financial supply. The PBC will strengthen cooperation with relevant industrial regulatory departments, fully rally the enthusiasm of financial institutions and continuously enhance the effectiveness of financial support for the "five priorities."

When giving my introduction, some policy tools, especially structural policy tools, are of great concern to everyone. The structural policy tools have played a significant role in supporting major strategies, key areas and vulnerable aspects of national economy. Since Mr. Zou Lan is here today, we invite him to explain more.

Zou Lan:

Mr. Zhu mentioned that the financial sector should take the application of the "five priorities" as a key focus, so as to serve the high-quality development of the real economy and continue to optimize credit structure. This not only reflects the specific implementation of the central government's deployment, but also meets operation and development needs for the financial industry. However, the financial business is usually hard to change. There is still a process of capacity building in optimizing internal assessment objectives and mechanisms as well as improving the quality and efficiency of products and services. In order to encourage financial institutions to optimize their credit structure more quickly, the PBC has been continuously innovating its operations for a period of time. On the basis of the original relending loans, the PBC has set up targeted structural monetary policy tools in the form of preferential interest rates. These tools provide incentives for financial institutions to optimize their products and services and to compensate for certain operational costs that financial institutions may experience in the short term. 

From the operational perspective, commercial banks make their own choices and bear the risks of issuing loans to enterprises in accordance with market-oriented principles; then, the PBC issues relending loans based on the commercial banks' applications and actual loan conditions. Structural monetary policy tools do not change the nature of business when commercial banks provide loans and central banks provide relending loans to commercial banks. This does not mean that the central bank directly or indirectly issues loans to enterprises. We are aware that there have been some misunderstandings in discussions regarding this matter. In terms of implementation principles, structural monetary policy adheres to the principles of "focusing on key areas, being reasonable and appropriate, and advancing and retreating in a timely manner." As of the end of March 2024, the total amount of these tools is 7.5 trillion yuan, accounting for approximately 17% of the central bank's total assets. There are a total of 10 existing tools, which have been continuously integrated and optimized; tool-supported areas have achieved basic coverage of the "five priorities."

That's all from me. Thanks. 

Red Star News:

We have noticed that at the beginning of this year, management approach for bank foreign exchange businesses was implemented. How is the effect so far? What are the follow-up measures to further improve the bank's capabilities for expanding foreign exchange businesses? Thanks.  

Wang Chunying:

Thank you for your questions. The SAFE issued the trial management approach for bank foreign exchange businesses at the end of 2023. The management approach adheres to the principle of "the more trustworthy, the more convenient" and "know your customer." The aim is to explore and promote a process of reengineering for commercial banks' foreign exchange business. It involves setting up a comprehensive business framework that includes customer identification and classification before the business process and differentiating in-process reviews and post-monitoring reports, so as to improve the mechanism of "those who have fulfilled their duties are not held accountable ," and to "reduce the burden" on enterprises and "relief pressure" on banks. Since being implemented over three months ago, the management approach has received positive comments from all sectors of society, with the effects and responses being quite good. 

On the one hand, the reform of foreign exchange business in banks has created a more favorable policy environment which will offer more convenience to trustworthy clients. Mr. Zhu talked about policy support for foreign exchange facilitation in his briefing as well. By the end of this year's first quarter, four banks had participated in the reform's pilot program. These four banks have reduced the average time they spent in handling foreign exchange businesses for their top-tier Category I clients by 50-75%. For example, a lithium-ion battery company used to handle an average of 50 or 60 foreign exchange transactions every month. After being included in the Category I client policy, the business process was streamlined to less than an hour. The policy has made foreign exchange businesses much easier for companies. As such, companies have been benefiting from the reform. Local governments have also expressed their recognition of the reform and welcome it. Overall, the reform of foreign exchange business in banks represents an important measure to facilitate cross-border trade, investment and financing.

On the other hand, the reform of foreign exchange business in banks has been helpful in improving banks' services for cross-border financial businesses. First, it motives banks to integrate their internal information and to know about their clients in a comprehensive manner, so as to identify their target clients and make proper arrangements. Given the large amount of client information in different banks, the reform of foreign exchange business in banks enables commercial banks to integrate the internal information of their clients and to match high-quality services with low-risk clients. Therefore, this provides banks with greater space for product innovation. Second, risk identification has become more efficient. After the reform, banks are able to fully leverage knowledge about their clients from the beginning, allowing them to better fulfill their responsibilities for customer due diligence. Therefore, this will help banks identify risks early on and issue early warnings. Third, the principle that "those who have fulfilled their duties are not held accountable " has been clarified in legislation for the first time. This will thus enable banks to be competent, motivated and capable of engaging in such business, ensuring that facilitation policies can be effectively put into practice. We have released the first batch of 10 explanatory cases to help banks understand the criteria of principles accurately and to avoid unnecessary review. Overall, the logic behind the reform of foreign bank exchange businesses aligns with the direction of banks' business development and meets the requirements of banks' risk control. As such, the reform has been recognized by banks. 

Currently, more banks are preparing for the reform of bank foreign exchange businesses, and reworking the process of foreign exchange businesses. More market entities are expected to benefit from the reform. Going forward, the SAFE will advance the reform in a sound and cautious manner, ensuring that the reform will be implemented only when the necessary conditions are in place. We will intensify endeavors to prevent and control risks in a bid to ensure that the foreign exchange management system and mechanism become more open and safer. 

First, we will enhance policy promotion and guidance, providing tailored guidance for banks which would like to conduct reforms in a bid to reduce their trial-and-error cost. Second, we will introduce guidelines for relevant businesses by establishing a supportive regulatory system focusing on key parts, such as customer due diligence and customer classification, so as to offer specific operation standards for banks. Third, we will keep the case library updated to ensure the mechanism that "those who have fulfilled their duties are not held accountable" can be applied in more situations. We will provide the banks with appeal channels and third-party review mechanism in a bid to ensure inspections and law enforcement on foreign exchange businesses are more transparent and open.

The aforementioned is an overview of the situation regarding foreign bank exchange businesses. We'd love to get the state of affairs in front of a wider audience through media exposure. While "good wine needs no bush," we also afraid of not enough publicity. However, we are unafraid because we have all of you. Thank you.

Yicai:

What was the total amount of credit extended and its allocation in the first quarter of this year? What are the expected changes in credit allocation and distribution in the coming months? Thank you. 

Zhang Wenhong:

Thank you for your questions. The total credit amount and credit allocation are closely watched by all. Mr. Zhu provided an update on data regarding total loan volume in his opening remarks. The total loan volume data across different sectors in the first quarter reveals that the total loan volume has maintained steady and rapid growth. At the end of March, the outstanding balance of yuan-denominated loans held by financial institutions was 247.05 trillion yuan, an increase of 9.6% year on year. In the first quarter, yuan-dominated loans rose by 9.5 trillion yuan, with the new loan additions lower than the same period last year. This is attributed to the high base from the previous year. From a longer-term perspective, the new loan additions in the first quarter of this year outpaced the same period in 2022 by a significant margin of 1.13 trillion yuan. Data shows that financial system's credit support for the real economy has maintained a high level.

In terms of borrowers, loans issued to enterprises and public institutions constitutes the primary source of credit growth. In the first quarter, loans extended to enterprises and public institutions increased by 7.77 trillion yuan, with medium- and long-term loans growing by 6.2 trillion yuan. This trend underscores the financial system's sustained and stable funding support for the real economy. In the same period, household loans grew by 1.33 trillion yuan, which was primarily driven by a 1.29-trillion-yuan increase in business loans.

Speaking of sectoral distribution, new loans were primarily issued to key sectors such as manufacturing, infrastructure and the service industry. The growth rate of loans issued to the real estate sector showed an upward trend. The structure of sectoral distribution of loans is undergoing continuous optimization. The specific details are as follows: 

First, medium- and long-term loans issued to the manufacturing sector continued to grow at a relatively high rate. At the end of March, the volume of medium- and long-term loans issued to the manufacturing industry grew by 26.5%, surpassing the overall growth rate of such loans across all industries by 12.2 percentage points. Notably, medium- and long-term loans to high-tech manufacturing companies increased by 27.3%, marking a 0.8 percentage point rise from the previous month.

Second, medium- and long-term loans issued to the infrastructure industry witnessed a steady growth. At the end of March, the volume of medium- and long-term loans issued to the infrastructure industry increased by 13.4%, with its total amount surging by 1.97 trillion yuan in the first quarter.

Third, a comparatively higher increase was recorded in medium- and long-term lending to the service industry, excluding the real estate sector. This type of lending grew by 13.1% at the end of March, and increased by 2.87 trillion yuan cumulatively in the first quarter, accounting for half of the increase in medium- and long-term lending to all industries. 

Fourth, the growth rate of medium- and long-term loans to the property industry increased. At the end of March, medium- and long-term loans to the real estate sector rose by 4.9%, 0.6 percentage point higher than that at the end of last year. In the first quarter, this type of loans increased by 672.7 billion yuan, with the amount of newly added loans higher than that of the same period last year. 

Going forward, the PBC will follow the arrangements made at the central financial work conference. We will maintain the reasonable and steady growth of credit, continue optimizing the credit structure, focus on improving efficiency, and advance high-quality financial services for key fields and weak links. Thank you. 

Shou Xiaoli:

The final question.

Phoenix TV:

We noticed that the real interest rate has become a hot topic recently. Some people think the rate is relatively high. What is the opinion of the PBC? Thank you. 

Zou Lan:

I'm glad to answer this question. The real interest rate has indeed attracted much attention in the market, which we have also noticed. In earlier years, when talking about the real interest rate, we referred to the interest rate paid by enterprises or residents. However, in addition to the interest rates stated in loan contracts, there were still various fees such as guarantee fees and mortgage registration fees. Therefore, when we mentioned the real interest rate in the past, we meant to lower it by reducing comprehensive financing costs. But this time, people are probably treating it as a theoretical economic concept. Simply put, by deducting the inflation rate from the nominal interest rate, we get the real interest rate which is being discussed this time. Therefore, it is both related to the nominal interest rate and influenced by the inflation trend. In the past several years, the nominal interest rate has continued to decrease, playing a positive role in promoting the overall economic recovery and growth. However, domestic demand is comparatively weak, while at the same time, prices are at a lower level. For example, this January, the year-on-year CPI growth rate dropped for a period to minus 0.8%, which I think is also a major reason why discussion of the real interest rate became heated. The PBC will focus on ensuring stable prices and promoting a mild rebound in prices while implementing monetary policies. It will also put more emphasis on the characteristics and development of inflation indicators. Given that prices are currently at a lower level mainly due to structural and phased reasons, we still need to carry out more in-depth observation and analysis.

From the structural perspective of prices, price indices such as CPI and PPI, as well as the average interest rates on loans, refer to the notion of average figures. However, as the economic structure is transforming and upgrading, old driving forces are being replaced by new ones, and steady progress is being made in pursuing high-quality development, economic and financial indicators in various areas will become even more divided. Against such a backdrop, we need to pay attention to both the average figures and the structural elements. Loan interest rates vary among different sectors and enterprises, and meanwhile, the amount of increases and decreases in their product prices are not the same. Therefore, they have different senses of the real interest rate. For instance, in areas of the service sector such as culture and entertainment, and fields related with new growth drivers, prices have continued an upward trend, and financial institutions are proactively providing financing support. The nominal interest rates in these sectors are comparatively lower. Therefore, after deducting the price increase rate from the financing interest rate, people in these sectors feel that the real interest rate is lower. In contrast, for industries closely related to the real estate sector, such as the ferrous metal industry, their product prices saw comparatively bigger drops. Consequently, financial institutions are more cautious and nominal interest rates are higher, which leads to a relatively higher real interest rate. For areas that currently require tight allocation of financial resources, slightly higher real interest rates can help enterprises control production capacity and reduce inventory to a certain extent. This also demonstrates the requirements made at the central financial work conference on maintaining reasonable and sufficient monetary aggregate and allowing structural adjustments.

From the viewpoint of phased changes in prices, on the one hand, China has sustained its sound economic growth and overall demand is expanding, thereby having the right foundations and conditions for a price recovery. On the other hand, prices for some agricultural products have reached a turning point of adjustment, and tourism and travel have become more frequent, both of which will help promote an increase in prices. Therefore, we are expecting an overall moderate recovery of prices from low levels, and at the same time, real interest rates will also change accordingly. Of course, we still need to pay attention to the range, speed and fluctuations of the recovery.

In general, we still need to comprehensively study and analyze the situation of prices and the real interest rate. A series of measures taken in the previous phase have already taken effect. In the future, we will continue to examine the situation by considering multiple elements, including economic recovery momentum, inflation trends and the advancement in transformation and upgrading. Based on price changes and development, we will maintain the nominal interest rate within a reasonable range and consolidate the momentum for economic recovery and growth. Meanwhile, we also need to fully consider the needs of high-quality development, avoid reducing the motivation of structural adjustments, prevent low interest rates, and avoid involuntary competition intensifying or funds circulating within the financial sector without entering the real economy, which may result in further price decreases or a negative cycle. Thank you.

Shou Xiaoli:

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, Yuan Fang, Liu Sitong, Huang Shan, Qin Qi, Liu Jianing, Wang Yanfang, Yan Bin, Liu Qiang, Liu Caiyi, Zhang Rui, Yan Xiaoqing, Wang Qian, Gong Yingchun, Li Huiru, Zhou Jing, 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. Shan Zhongde, vice minister of industry and information technology

Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT)

Ms. Tao Qing, spokesperson for MIIT and director general of the Operation Monitoring and Coordination Bureau of MIIT

Chairperson:

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

Date:

April 18, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). We have invited Mr. Shan Zhongde, vice minister of industry and information technology, to brief you on China's industry and information technology sector's development in the first quarter of 2024, and to take your questions. Also present today are Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT) and Ms. Tao Qing, spokesperson for MIIT and director general of the Operation Monitoring and Coordination Bureau of MIIT.

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

Shan Zhongde:

Ladies and gentlemen, greetings to you all. I'd like to express my gratitude to you for your long-term interest in and support for the development of China's industry and information technology. First, I'll give you an overall introduction in this sector. 

Under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, the MIIT has thoroughly implemented the decisions and arrangements of the CPC Central Committee and the State Council, and adhered to the general principle of pursuing progress while ensuring stability. We have actively cooperated with local governments and various departments to front-load efforts to ensure effective implementation, vigorously promoting new industrialization. In the first quarter of 2024, a notable overall pattern emerged: the industrial economy maintained a rapid growth, yielding positive results in high-quality development and achieving a good start overall. This was specifically evidenced in four areas: stable and favorable performance in the industrial economy, accelerated progress in new industrialization, stable growth in information and communication, and ongoing improvement of the business environment. 

First, stable and favorable performance in industrial economy was primarily demonstrated as follows. Industrial production secured rapid growth. In the first quarter, the value added of China's industrial enterprises above designated size grew by 6.1% year on year, an increase of 1.5 percentage points compared to 2023. Key industries such as electronics, chemicals and automobiles made notable contributions to this growth, with prominent industrial provinces and cities playing a major role. The industrial enterprises' profits continue to increase. In the first two months of this year, the profits of the industrial enterprises above designated size increased by 10.2% year on year, marking continuous growth since August of last year. Market expectations are positive. In the first quarter, industrial investment increased by 13.4%, with the number of industrial enterprises above designated size continuing to rise. In March, the manufacturing purchasing manager's index (PMI) bounced back to the expansion zone, reaching 50.8%. In the first quarter, the value added of small and medium-sized industrial enterprises above designated size grew by 7.4% year on year. It can be said that multiple factors drove a continuous improvement in the industrial economy. 

Second, accelerated progress in new industrialization. Consistently taking high-quality development as a top priority, we strive to fulfill the crucial task of achieving new industrialization and vigorously promoting the initiative. We lead industrial innovation through scientific and technological innovation, actively fostering and developing new quality productive forces, constructing a modern industrial system underpinned by advanced manufacturing and fortifying efforts to make the manufacturing sector higher-end, smarter and more eco-friendly. It can be said that new breakthroughs were secured in high-end development. We have coordinated the implementation of projects launched to achieve breakthroughs in core technologies in key fields, industrial foundation reengineering projects as well as research projects focused on major technologies and equipment. Our efforts have brought about new streams of innovation. Notably, an initial prototype for a 300-megawatt F-class heavy-duty gas turbine has been assembled. We have made solid strides in delivering in the initiative of pursuing high-quality development of key manufacturing chains and to build up advanced manufacturing clusters. In the first quarter, the value added of high-tech manufacturing increased by 7.5% year on year. The intelligence level has achieved new improvements. Expedited efforts have been made to advance the four deep integrations between digital technology and manufacturing, digital economy and real economy, information technology and industrialization as well as artificial intelligence (AI) and manufacturing. Currently, 421 national demonstration factories for intelligent manufacturing have been established. The central and local governments jointly introduced a series of polices to support upgrading enterprises with digital and smart technologies. Nearly 10,000 digital workshops and smart factories have been built nationwide. Green development has also made progress. Consistent efforts have been made to drive the green and low-carbon transformation in the industrial structure, with application scenarios for hydrogen energy and new energy storage ways among others, seeing constant expansion. In the first quarter, the market share of new energy vehicles exceeded 31% and energy consumption per unit of industrial added value created by enterprises above designated size in traditional sectors, such as steel and non-ferrous metals, continued to decline.

Third, stable growth in information and communication. In the first quarter, telecommunication businesses' revenue grew by 4.5% year on year. The infrastructure played an ever-growing supporting role. Steady progress was made in the construction of the "dual-gigabit" internet, which features a 5G network and a gigabit optical network. Now, a cumulative total of 3.647 million 5G base stations have been established, 5G penetration rate has exceeded 60% and 207 cities have achieved the standards of gigabit cities, guiding the construction of a hierarchical computing power infrastructure. The empowerment effects of information technologies have continued to grow. 5G applications have been widely adopted in areas such as manufacturing quality inspection and mining production. Applications of the industrial internet have been integrated into 49 major economic categories, forming more than 200 industrial internet demonstration and application programs. Information and communication have played a big role in improving people's well-being. Continued efforts have been made in the governance of apps, strongly and effectively protecting the rights and interests of users. The promotion of demonstration cases for elderly-friendly internet applications have also been further accelerated. 

Fourth, our business environment is constantly improving. We are striving to foster a world-class business environment that is market-oriented, law-based, and internationalized, with a focus on four key areas: enhancing services to enterprises, reinforcing the principal role of enterprises in innovation, facilitating closer collaboration between industry and finance, and promoting open development. In terms of enhancing services to enterprises, we have launched the "Together for the Benefit of Enterprises" initiative aimed at small and medium-sized enterprises (SMEs), and micro-businesses. We have also launched special campaign to settle overdue payments owed to enterprises and established a robust mechanism to address this problem in the long term. Furthermore, we have implemented various policies to support enterprises and listed tasks for reducing their burden this year, focusing on solving the pressing difficulties and problems that concern them most. In terms of reinforcing the principal role of enterprises in innovation, we have been nurturing and expanding high-tech companies and innovative SMEs that use special and sophisticated technologies to produce novel and unique products. We have also been supporting enterprises of all sizes in pursuing development through collaboration with each other in order to spark innovation and boost growth momentum. In terms of facilitating collaboration between industry and finance, we have leveraged the role of the national industry-finance cooperation platform that has helped companies to secure an accumulative finance of over 780 billion yuan. In terms of strengthening open development, we have thoroughly implemented policy measures to remove market access restrictions on foreign investment in manufacturing, further opened up value-added telecom services, and deepened mutually beneficial cooperation with companies worldwide.

Going forward, we will continue to be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the decisions and arrangements made by the CPC Central Committee and the State Council, and fortify our confidence for development, innovation, and opening up. We are committed to opening up the manufacturing sector and promoting open cooperation for a shared future. We will strengthen the integration of scientific and technological innovation with industrial innovation and accelerate the integration of digital technologies with the real economy. We will do our best to stabilize industrial growth, accelerate the development of new quality productive forces, and promote the development of generic technology platforms and pilot-scale testing platforms. We will leverage information technology, digital technologies, smart technologies, and green technologies to advance new industrialization, move the manufacturing sector toward higher-end, smarter, and greener production, continuously consolidate the momentum for recovery and growth of the industrial sector, foster new driving forces for development, and provide solid support for high-quality and sustainable development of the industrial sector.

That concludes my overview of the first quarter. Now, my colleagues and I are ready to answer your questions.

Xing Huina:

Thank you, Mr. Shan. We now move to the Q&A session. Please identify the media organization you represent before raising your questions.

China National Radio:

Since the first quarter of this year, the industrial sector has been speeding up its recovery. How do you look at the current development of the industrial sector?

Shan Zhongde:

Thanks for your question. As I just mentioned, in the first quarter, the value added of China's industrial enterprises above designated size grew 6.1% year on year, marking the highest growth in the past eight quarters and signaling a solid start with rapid industrial development. To answer your question, I would like to further elaborate on three aspects.

First, major industrial provinces and cities, as well as key industrial sectors, have maintained stable growth. Among 31 provincial-level regions in China, 28 recorded year-on-year value-added industrial growth, with nine major industrial provinces such as Jiangsu, Shandong, Zhejiang, Fujian, and Hubei outpacing the national average. Among 50 major industrial cities, Shenzhen, Suzhou, Hefei, Nantong, Taizhou, and Dongguan registered double-digit growth. Major industrial provinces and cities played a crucial role in supporting industrial growth. Key industries are operating steadily and showing signs of improvement. Out of the 41 major industrial categories, 37 sectors, including electronics and automobiles, have seen year-on-year value-added growth, with the proportion of growing sectors expanding by 22 percentage points compared to last year. The equipment manufacturing sector has sustained rapid growth, with its value added growing by 7.6% year on year in the first quarter, contributing 2.4 percentage points to the growth of industrial enterprises above designated size and playing a crucial role in providing support and driving growth. The production of consumer goods has notably improved, with its value added growing by 4.2% year on year in the first quarter, reversing the downturn seen since April 2022. The raw materials manufacturing sector has maintained stable growth, with its value added growing by 7.5% year on year in the first quarter, and with industries such as non-ferrous metals and chemicals outpacing the overall industrial level.

Second, the high-tech manufacturing and emerging industries have maintained rapid growth. Specifically, high-tech manufacturing has shown a noticeable rebound, with its value growing by 7.5% year on year in the first quarter, 2.6 percentage points higher than the fourth quarter last year. Emerging industries have also demonstrated strong growth in key products. For instance, solar batteries grew by 20.1%, while polysilicon and monocrystalline silicon, which are relevant to the photovoltaic industry, saw their growth rates soaring above 50%. Additionally, the production and sales of new energy vehicles grew by 28.2% and 31.8%, respectively, in the first quarter. Furthermore, the MIIT and six other departments jointly issued Guidelines for Promoting the Innovative Development of Future Industries and Guidance for the Innovative Development of Humanoid Robotics, which are aimed at supporting enterprises in exploring new areas and accelerating the development of new quality productive forces. 

Third, there is a continuous accumulation of positive factors contributing to the recovery and growth of the industrial economy. The industrial economy has significant development potential, strong confidence, and robust momentum. The main manifestations include sustained market demand, with manufacturing investment increasing by 9.9% year on year in the first quarter, the export delivery value of industrial enterprises above designated size growing by 0.8% year on year, automobile sales increasing by 10.6% year on year, and consumers' spending on home appliances up 5.8% year on year. Particularly noteworthy is that policies promoting large-scale equipment upgrades in the industrial sector and consumer goods trade-in have accelerated release of market space. Business entities have confidence, as profits of industrial enterprises above designated size have been consistently growing, and private investment in the manufacturing sector has increased by 11.9% year on year. According to a survey conducted by our ministry in the first quarter among 36,000 key enterprises, 76% of them expect their output value to increase or remain stable in the second quarter. The driving force for development is abundant, with the number of industrial enterprises above designated size increasing by 19,000 to reach 501,000 by the end of February compared to the previous year. The efforts made by 178 national high-tech zones in leading and demonstrating high-quality development have achieved remarkable results, and 45 advanced manufacturing clusters have become important forces driving innovation and development in key industries and fields.

Next, we will focus on implementing the requirements of high-quality development throughout the entire process of new industrialization. We will strengthen the deep integration of scientific and technological innovation with industrial innovation, develop high-tech industries, achieve industrialization, cultivate and develop new quality productive forces, and accelerate the construction of a modern industrial system supported by advanced manufacturing. We will adhere to the principle of prioritizing quality and efficiency and solidly promote stable growth, transformation of growth model, increased momentum, and risk mitigation in order to consolidate and enhance the positive trend of the industrial economy's recovery.

I'll just add these details to the question. Thank you.

National Business Daily:

In recent years, the rapid development of the information and communication technology has significantly improved the quality of life of the general public. May I ask about the progress made by the MIIT in promoting the development of the information and communication industry in the first quarter? What are the key areas of focus for the next steps? Thank you.

Zhao Zhiguo:

Thank you for your questions. The MIIT has fully implemented the decisions and plans of the CPC Central Committee and the State Council. Adhering to the general principle of pursuing progress while ensuring stability, the MIIT has been promoting the high-quality development of the information and communication industry and has achieved positive results. In the first quarter, the revenue from the telecommunications sector reached 443.7 billion yuan, with a year-on-year growth of 4.5%, maintaining steady growth overall and laying a solid foundation for the year's work. There are several aspects to highlight:

We have persisted in developing appropriately future-oriented infrastructure. As of the end of March, the cumulative number of 5G base stations built nationwide reached 3.647 million. 5G penetration rate has exceeded 60%, and the number of ports with gigabit network service capability reached 24.56 million. The world's first 400G all-optical interprovincial backbone network officially became commercially available. As we all know, 400G currently represents the fastest and highest transmission speed globally. We have now established and commercially utilized a 400G network, thereby better supporting efficient interconnectivity of computing power and data across different entities, types, and regions.

We have accelerated efforts to make innovative breakthroughs and acted as leaders in the technological industry. Breakthroughs were made at a faster pace in key technologies. The commercial verification of 5G lightweight (RedCap) technology on high, medium, and low-frequency bands was completed. The performance indicators of quantum computing prototypes continued to improve, and breakthroughs were achieved in quantum error correction testing. The industrial strength has been steadily enhanced. In the first quarter, the shipment of 5G mobile phones in our country, reached 56.43 million units, accounting for 83.7% of the total mobile phone shipments during the same period. It can be said that this reflects a significant demand for high-end or smart 5G phones, reaching a share of 83.7%.

We have deepened application empowerment and promoted integrating digital technology into the real economy. In terms of industrial application, 5G technologies have been integrated into 74 out of 97 major categories of the national economy. They have been extensively applied in key sectors such as industry, mining, power, and healthcare. The "5G+ industrial internet" projects exceeded 10,000, and application empowerment has accelerated its expansion into core and control links. Previously, these technologies were primarily applied in peripheral links, but now they are gradually accelerating their expansion into control or core links. In terms of personal application, generative AI has also been widely promoted and adopted in applications such as chatbots, intelligent search, and text generation. In the first quarter, mobile internet traffic increased by 14.3% compared to the same period last year.

We have stepped up efforts to ensure inclusive development that deliver benefits to all and guarantee public services. Telecommunication services have steadily advanced, and by the end of last year, the internet penetration rate in rural areas of our country reached 66%, narrowing the urban-rural gap. Age-friendly products and services have become more accessible, with new application scenarios such as 5G video customer support and payment verification by drawing a pattern continuously emerging and gradually being implemented. Efforts to safeguard people's wellbeing have been continuously intensified. Centering on improving work conduct and rectifying misconduct, we have made every effort to protect users' legitimate rights and interests. In the first quarter, we intercepted a total of one billion scam phone calls and text messages.

Going forward, the MIIT will prioritize high-quality development to consolidate and enhance its competitive advantages and leading position in the information and communication sector. First, we will lay a solid foundation by accelerating the implementation of policies related to large-scale equipment updates and promoting the optimization and upgrading of information infrastructure. We will also promote the coordinated development of computing infrastructure and accelerate the formation of a national unified computing system. Second, we will focus on innovation, which we believe is fundamental. We will integrate 5G with big data, cloud computing, AI, and other technologies to accelerate the evolution of 5G. As we all know, 5G is now evolving to 5G-Advanced (5GA) or 5.5G, and we will accelerate R&D in 6G and 10G optical networks. Third, we will strengthen application efforts by accelerating the promotion of R&D and applications in areas such as big data and AI. We will implement the AI Plus initiative and continue accelerating the industrial internet's large-scale application. Fourth, we will improve supervision by speeding up the issuance of policies and opinions on innovative information and communication industry management, optimizing the business environment, and continuing to create a first-class business environment to better serve market entities. Fifth, we will safeguard security by strengthening technical support, improving industry network and data security management, and promoting the innovative development of the network and data security industry. Thank you.

Red Star News:

The high-end and intelligent development of the manufacturing industry is attracting significant societal attention. Could you please share the work that has been done to promote the development of intelligent manufacturing? What are the considerations for the next steps? Thank you.

Shan Zhongde:

I will answer these questions. Thank you for asking. Intelligent manufacturing is the key technology and primary task for transforming China's manufacturing industry from being large in size to being strong in capability. It focuses on building China's strength in manufacturing and is an important task for promoting new industrialization. We are vigorously advancing intelligent manufacturing to achieve high-quality, efficient, green, and safe manufacturing products. Meanwhile, in terms of developing intelligent manufacturing, the manufacturing technology system, production model, industrial form, and value chain will be further refined. In recent years, we have focused on four key areas to promote the development of intelligent manufacturing:

First, we have increased our efforts to achieve technological breakthroughs. We are focusing on developing intelligent manufacturing processes, equipment, products, and software systems. We are working to achieve breakthroughs in core technologies such as industrial robots, intelligent testing equipment, and additive manufacturing equipment. Additionally, we are strengthening innovative advancements in integrating processes, equipment, and software, particularly in areas like process digitization, equipment intelligence, quality inspection, and supply chain collaboration. The total output value of China's intelligent manufacturing equipment sector has now exceeded 3.2 trillion yuan.

Second, we have enhanced the supply of solutions. A robust network of service providers is essential to develop intelligent manufacturing and promote enterprises' digital and intelligent transformation. We are focusing on cultivating over 150 system solution providers with main business revenues exceeding 1 billion yuan. System integration capabilities in sectors such as steel, petrochemicals, and lithium batteries have reached an internationally advanced level. Solutions, including mixed-line flexible production, integrated processing and testing, and high-precision, high-reliability assembly, have also achieved significant breakthroughs, empowering more than 3,400 companies.

Third, we have enhanced leadership and demonstration efforts. For three consecutive years, we have collaborated with the National Development and Reform Commission and four other departments to implement smart manufacturing pilot demonstration actions. As a result, we have cultivated 421 national demonstration factories and more than 10,000 provincial-level digital workshops and smart factories. Technologies such as AI and digital twins are now applied in over 90% of these demonstration plants.

Fourth, we have strengthened the formulation of standards. The MIIT, in conjunction with the Standardization Administration of China (SAC), has released guidelines for the construction of a national smart manufacturing standards system. We have issued 408 national standards and led the formulation of 48 international standards to promote the standardized, institutional, and systematic development of intelligent manufacturing.

Next, based on our current work, we will focus on several key areas:

First, we will strengthen the leveraging role of applications. We will deeply promote the construction of smart factories and smart supply chains, carry out the AI Plus initiative, build smart industrial parks, and cultivate exemplary cases of digital transformation and intelligent development. We will support traditional industries and small- and medium-sized enterprises in technological transformation using mature and advanced applicable technologies. The goal is that by 2025, more than 70% of manufacturing enterprises above designated size will have transitioned to digital and network-based operations, and several smart manufacturing demonstration factories will be built to lead industrial development.

Second, we will improve supply support. We will plan and deploy major scientific and technological innovation projects in the intelligent manufacturing sector and strengthen breakthroughs in core technologies in key fields such as intelligent manufacturing processes, equipment, products, and software systems. At the same time, we will cultivate intelligent manufacturing system solution providers, fostering a group of providers with advanced technologies and strong service capacities. We aim to better promote the digital transformation and intelligent enhancement of more enterprises by 2025.

Third, the infrastructure will be improved. We will adopt an appropriately forward-thinking approach for information infrastructure like 5G networks, computing power, and Internet of Things, work faster to create industrial internet platforms, accelerate the innovative growth of industrial internet, and build a better system of standards for intelligent manufacturing. In particular, we will enhance evaluations with an aim to build a batch of industrial internet platforms that have influence in industries and across regions by 2025.

We have guided large-scale equipment renewals this year. Meanwhile we have systematically promoted intelligent manufacturing application research, advanced scientific and technological research, and  strengthened infrastructure by using this opportunity in a bid to vigorously make the manufacturing sector more digitalized, internet-powered, and smarter, providing strong support to boost China's strength in manufacturing.

That's all from me. Thank you.

China Daily：

We noticed that the ministry recently rolled out a series of policies and measures to pursue the green development of the manufacturing industry. What have been the results in this regard? And what are the plans for the next steps? Thank you.

Tao Qing:

Thank you for your questions. Pursuing green and low-carbon growth is in line with the trend of technological revolution and industrial transformation. The ministry has fully implemented Xi Jinping Thought on Ecological Civilization, worked faster to build a modernized industrial system, and made achievements in moving the manufacturing sector toward greener production.

In terms of utilization of resources and energy, we have significantly improved the energy efficiency of products. China's steel, primary aluminum, cement clinker, and other industries have achieved significant improvements in unit product energy efficiency. The energy consumption structure has continued to be optimized. We have promoted a batch of typical application scenarios and cases for industrial green microgrids in key industries and sectors such as steel, petrochemicals, and chemicals.

In terms of product structure, we have continuously enhanced the capacities of green products. The proportion of advanced manufacturing and the supply capacity of green technical equipment and products have increased markedly. For example, in the first quarter, the production and sales of new energy vehicles were 2.115 million and 2.09 million, respectively, a year-on-year increase of 28.2% and 31.8%, with the market share reaching 31.1%.

In terms of green manufacturing, we have given full play to the leading and guiding role of relevant enterprises. At present, at the national level, a total of 5,095 green factories, 371 green industrial parks, 605 green supply chain management companies, and more than 500 green manufacturing professional service institutions have been built.

In terms of cultivating new driving forces, we have moved faster to set up a layout for the development of the future-oriented industries. In industrial sectors, application scenarios have been enriched in the hydrogen energy industry and the new type of power storage technologies. China's first 10,000-tonne demonstration project in green hydrogen industry was built and put into operation. The first million-tonne hydrogen-based shaft furnace in the steel industry successfully ignited and started production.

Next, we will further implement the arrangements on fully pursuing green growth of the industrial sector made at the national meeting on promoting new industrialization, as well as focus on forging new advantages in green development of the industry and creating a number of green manufacturing industry benchmarks. We will focus on three aspects.

First, we will speed up green and low-carbon transformation and upgrading in traditional industries. Efforts will be made to encourage large-scale equipment renewal and trade-in of consumer goods and guide enterprises, industrial parks, and key industries to promote a new round of green and low-carbon technological transformation. We will accelerate the adjustments and optimization of product mix, energy consumption structure and raw materials mix of traditional industries, and speed up their process reengineering, with a view to enhancing the competitiveness of industries. 

Second, we will promote green, low-carbon, and forward-looking growth of emerging industries. Efforts will be made to guide information and technological infrastructure like data centers and base stations to expand the use of green energy. For example, we will accelerate the comprehensive utilization of new-type solid waste, such as decommissioned batteries, photovoltaic modules, and wind turbine rotor blades. Focusing on the realization of peaking carbon dioxide emissions and achieving carbon neutrality, we will lay out the development of future-oriented industries like hydrogen energy, energy storage, biomanufacturing, and carbon capture, utilization and storage, in keeping with the trend of energy revolution and industrial transformation.

Third, we will cultivate new business forms in green manufacturing. Vigorous efforts will be stepped up to promote the deep integration of eco-friendly and digital practices, modern services and green manufacturing, and consumer' needs for green consumption and the supply of sustainable products. We will work hard to cultivate new business forms and foster new growth drivers. Thank you.

Cover News：

According to the government work report this year, we will develop appropriately future-oriented digital infrastructure, work faster to create a nationally unified computing system, and foster industrial ecosystems for computing. What does the ministry specifically plan to do in this regard? Could you provide more details about the development of China's computing power sector and discuss the next steps for its growth? Thank you.

Shan Zhongde:

Thank you for your questions. Acting in line with the arrangements and requirements on working faster to create a nationally unified computing system pushed forward in this year's government work report, the MIIT has strengthened policy guidance, developed computing infrastructure, enhanced the innovation capacity of industries, and promoted the implementation of computing power applications, all of which have delivered positive outcomes.

First, we have actively guided the development of computing infrastructure. We have accelerated the implementation of the action plan for the high-quality development of computing power infrastructure, advanced the coordinated development of computing, networks, storage, and application, and guided the building of the tiered system of computing infrastructure encompassing national hubs, regional centers, and local peripheries. As of the end of 2023, more than 8.1 million standard racks were in use at data centers across China, with the total computing power reaching 230 EFLOPS, which is 230 quintillion floating-point operations per second.

Second, we have focused on strengthening the foundation of computing power development. We have optimized the computing power structure, promoted a diversified supply of computing resources, and gradually expanded the proportion of intelligent computing power, satisfying the development of AI applications. As of the end of 2023, China’s intelligent computing power has reached 70 EFLOPS, which is 70 quintillion floating-point operations per second, a growth rate of over 70%. We have pushed basic telecommunication enterprises to plan and construct more than 180 optical trunk cables under the "East Data, West Computing" project, expanded the interconnection bandwidth of backbone networks to 40T, and covered major cities nationwide with 20-millisecond latency circles of computing power hubs.

Third, we have accelerated the scheduling of computing power resources. We have strengthened research on key technologies regarding the interconnection between computing resources, developed cloud scheduling systems for computing networks, established a computing resource identification system, and improved standards and norms for the interconnectivity of computing power. We have enhanced the efficiency of data transmission between networks, upgraded the functions of new-type internet exchange centers and backbone direct connection points, and improved the ability of computing power to access networks.

Fourth, we have effectively built a computing industry ecosystem. We organized the selection of successful cases among new-type national computing centers to enhance the guiding role of excellent practices. We collected over 5,000 projects of innovative application of computing power, covering various fields such as finance, transportation, and urban governance. We guided the establishment of a matrix for computing industry development and created a community for the development of the industry to better promote integrated and coordinated development, enabling computing power centers to achieve better development.

Next, we will continue to build a nationwide integrated computing power system from three aspects. First, we will coordinate computing resources and improve utilization efficiency. We will optimize the composition of computing infrastructure, deepen the coordination and monitoring of computing infrastructure, and guide the coordinated development of computing power in the eastern and western regions. We will encourage basic telecommunication enterprises to continuously improve the direct interconnection networks linking from computing power clusters to major cities, enhance computing networks’ access capacity, and promote standardized interconnection of public computing power to improve utilization efficiency. Second, we will strengthen the leading role of intelligent computing and optimize the computing power structure. We will actively promote the development of AI computing architecture and software ecosystem, accelerate the breakthrough of a number of landmark technological products and solutions, and encourage various entities to explore new modes of intelligent computing center construction and operation, including multi-party collaboration mechanisms, to better utilize intelligent computing power. Third, we will stimulate computing power demand and improve computing services. We will research and establish a public computing power service supervision and management system, organize computing service scheduling and operation safety monitoring and evaluation, cultivate a number of competitive computing service providers, create a nationwide unified computing service market, continuously optimize computing power network products and services, reduce the cost of computing services for small and medium enterprises, and enhance the inclusiveness and accessibility of computing power.

Arguably, computing power has become an important engine to promote high-quality economic and social development, as well as a vital foundation for technological innovation and high-quality industrial development. We will continue to make efforts in the areas of computing power structure, intelligent computing supply, efficiency improvement, and service guarantees, providing stronger support for accelerating new-type industrialization and serving the construction of a new pattern of development.

That's all I have to say, thank you.

China News Service:

This year, the development of the low-altitude economy has attracted widespread attention. We understand that the MIIT along with three other departments have just issued an implementation plan for the innovative application of general aviation equipment. What are your considerations and plans for developing the low-altitude economy? Thank you.

Shan Zhongde:

I'll answer this question. As you said, the low-altitude economy is currently quite popular, and provinces and cities such as Jiangsu, Shandong, and Shenzhen have issued relevant policies for its development. The low-altitude economy is a typical emerging industry, a typical representative of new quality productive forces, and an important direction for cultivating new growth drivers. It is innovation-driven, green and low-carbon, and integrates digital and real economy. Not long ago, the MIIT, together with the Ministry of Science and Technology, the Ministry of Finance, and the Civil Aviation Administration of China, jointly issued an implementation plan on innovative application of general aviation equipment (2024-2030), aiming to accelerate the commercial application of new-type general aviation equipment featuring unmanned, electric, and intelligent technologies, and promote the large-scale development of "low-altitude logistics distribution," "low-altitude urban air traffic," and "low-altitude emergency rescue," etc.

As we all know, the development of the low-altitude economy relies on advanced aircraft and requires digital-driven and internet-based support as well as communications. The general aviation manufacturing industry provides essential equipment for the growth of the low-altitude economy, while information and communication networks offer solid foundational support. In recent years, the general aviation equipment manufacturing industry, represented by drones, has achieved rapid progress. According to incomplete statistics, by the end of 2023, there were over 2,300 civilian drone manufacturing enterprises in China, producing more than 1,000 mass-produced drone types. In 2023, China delivered over 3.17 million civilian drones, with the general aviation manufacturing industry's output value exceeding 51 billion yuan, marking a year-on-year increase of nearly 60%. Moving forward, to develop the low-altitude economy while balancing high-quality growth with high-level security, it is essential to enhance coordination among various departments and foster cooperation between central and local authorities. This will accelerate the creation of new growth engines for the low-altitude economy. The focus will be on following four key areas:

First, accelerating equipment innovation. Developing the low-altitude economy requires advanced low-altitude equipment, focusing on trends such as unmanned, electric, and intelligent technologies. This involves expediting breakthroughs in core technologies for new types of general aviation equipment, including key innovations in batteries and motors used in the aviation industry. The goal is to build a product system for low-altitude equipment that meets the needs of various application scenarios, characterized by low cost, high reliability, high performance, and high safety.

Second, strengthening application-driven development. By focusing on various application scenarios, such as logistics, rescue, and transportation, we will establish a demonstration system for multi-scenario applications in low-altitude settings, guided by the development of an industrial ecosystem. We will proactively cultivate high-tech enterprises and specialized, innovative "little giant" enterprises in the low-altitude economy. Additionally, we will accelerate the development of the industrial chain centered around the innovation chain, encouraging genuine integration between industry, academia, and research to better advance the low-altitude economy.

Third, enhancing technological integration. We will fully utilizing and leveraging next-generation information and communication technologies, digital technologies, intelligent technologies, and AI. We will accelerate the development and innovation of intelligent low-altitude connectivity technologies and models, providing robust support for building a future system characterized by safe and efficient low-altitude operations. By leveraging advanced equipment, network technologies, and application-driven scenarios, we can achieve significant progress in the low-altitude economy.

Fourth, strengthening standards support. We will accelerate the establishment of an industrial standards system that spans the entire lifecycle of low-altitude equipment, covering research and development, design, production, testing, verification, and operational support. We will collaborate with relevant departments to promote the construction of a third-party testing and certification system. We believe that the low-altitude economy is a major direction for the future development of emerging industries. It is destined to evolve into an industry with a trillion-yuan scale, significantly benefiting the public and better fulfilling people's aspirations for a better life.

That's all from me. Thank you.

China Financial and Economic News:

AI has emerged as a powerful catalyst for industrial transformation, drawing considerable attention to its integration with various industries. What factors should be considered when promoting the role of AI in facilitating new industrialization? Thank you.

Tao Qing:

Thank you for your question. I will answer it as follows. AI is a strategic technology leading the new wave of technological revolution and industrial transformation, serving as a crucial driver of new industrialization. In recent years, with joint efforts across various sectors, China has made significant progress in the development of AI. The number of AI enterprises has exceeded 4,500, and innovative achievements such as intelligent chips and general large models have rapidly emerged. Intelligent infrastructure continues to be strengthened, and the construction of digital workshops and smart factories has accelerated, laying a solid foundation for AI-enabled new industrialization.

Going forward, we will thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, carry out the tasks outlined in the National Meeting on Promoting New Industrialization and the government work report, and fully leverage the strengths of China's complete industrial system, large industrial scale, and diverse application scenarios. We will focus on the deep integration of AI and manufacturing, with intelligent manufacturing as the main direction and application scenarios as the driving force, to promote the intelligent transformation of the manufacturing industry and empower the industrial manufacturing system at a high level, providing new momentum for high-quality development.

First, we will accelerate breakthroughs in fundamental AI technologies to strengthen the foundation for application empowerment. By focusing on key underlying technologies such as algorithms and computational power for large models, we will expedite advancements in critical core technologies and products, including intelligent chips, large model algorithms, and frameworks. Additionally, we will accelerate the deployment of intelligent IoT terminals and industrial clouds, enhancing the operational management capabilities of computational power for manufacturing. Additionally, we will guide ecosystem enterprises to rapidly develop globally competitive general large models, cultivate industry-specific large models for manufacturing scenarios, and build high-level industrial databases to unlock the value of industrial data elements.

Second, we will accelerate the smart upgrading of key links, critical industries, and major products in the manufacturing sector. We will deepen the integration and application of AI technology throughout the entire manufacturing process to significantly enhance the smart-tech levels of R&D, pilot-scale testing, production, services, and management. Targeting key industries that have a significant impact on the national economy, a strong driving force, and a solid foundation for digitalization, we will launch special actions for AI-empowered new industrialization. This includes strengthening the connection between supply and demand, publicizing and implementing standards, and fostering application to expedite the smart upgrading of key industries and also improve the smart-tech levels of high-end equipment, critical software, and intelligent terminals among major products and equipment.

Third, we will improve the support system, and cultivate and expand the industrial ecosystem. We will provide stronger guidance on standards and establish and enhance the standard system for AI-empowered new industrialization. We will optimize the layout of AI manufacturing innovation centers, industrial technology public service platforms, and key laboratories, enhance collaborative innovation across the industrial chain, and reinforce the construction of an open-source AI ecosystem. We will also improve mechanisms for AI talent cultivation, security assurance, and international cooperation. Thank you!

People's Posts and Telecommunications News:

This year marks the 30th anniversary of China's connection to the internet. Could you please provide an overview of the key achievements in China's internet development over the past 30 years? What measures will be taken in the future to further promote its development?

Zhao Zhiguo:

I'll answer this question. Thank you for asking. On April 20, 1994, China opened its first 64K international dedicated line, achieving full functional connection with the internet and becoming the 77th member of the internet community. Thirty years have flown by, and the day after tomorrow, April 20, will be the 30th anniversary of this historic moment. Over the past 30 years, China's internet development has achieved significant accomplishments, providing a solid foundation and strong support for accelerating new industrialization and boosting its strength in manufacturing and cyberspace. These achievements can be summarized in five aspects: large scale, strong foundation, wide application, favorable environment, and extensive cooperation. Specifically:

First, in the aspect of scale, the comprehensive strength of the industry has continuously improved. By the end of 2023, the number of registered websites exceeded 3.8 million, the number of internet users reached 1.09 billion, and the internet penetration rate was 77.5%. From January to February this year, China's internet business revenue reached 246.3 billion yuan, up by 7.6% year on year, with total profits reaching 16.97 billion yuan, up by 6.5% year on year. According to estimates from relevant institutions, the market value of Chinese internet businesses is nearly 10 trillion yuan, with nine companies ranked among the top 30 global internet companies by market value. Their international competitiveness has been significantly enhanced.

Second, in the aspect of strong foundation, China's network facility has reached a global leading position. China has built the world's largest network infrastructure with advanced technology, fully completed IPv6 transformation, with the number of country code top-level domain registrations being the highest in the world. A comprehensive, multi-layered, and multi-dimensional network interconnection architecture is rapidly taking shape, and the quality of network services is advancing towards world-class levels.

Third, in the aspect of wide application, the role of integration and empowerment is evident. In the field of daily life, applications such as instant messaging, mobile payments, and ride-hailing have flourished, exploring new spaces for digital life. In the field of production, 5G applications have been integrated into 74 of the 97 major categories of the national economy, and the industrial internet has covered all 41 major industrial categories.

Fourth, in the aspect of favorable environment, the industrial ecosystem and order are continuously improving. The new regulatory system is continuously strengthened, significantly enhancing the compliance of business operations, the openness of the industrial ecosystem, and the robustness of security measures. The comprehensive service system that benefits the public and enterprises has gradually improved, and the protection of user rights is effectively strengthened.

Fifth, in the aspect of extensive cooperation, mutually beneficial cooperation continues to deepen and become more practical. China is deeply involved in global digital governance and international rule-making, promoting high-quality Belt and Road cooperation and practically carrying out all-around cooperation in digital transformation to share the dividends of digital economic development with other countries.

Next, regarding internet development, we will focus on the following three aspects of work:

First, we will stick to innovation-driven development and foster new quality productive forces. We will step up the construction of a new type of information infrastructure, systematically make plans to realize breakthroughs in core technologies in key fields, and promote the R&D and application of frontier technologies such as 6G, the next-generation internet, and quantum communication.

Second, we will adhere to the integration of the digital economy and the real economy and accelerate the new type of industrialization. We will promote the deep integration of AI and manufacturing, further advance the large-scale application for "5G+industrial internet," and speed up building a modern industrial system supported by advanced manufacturing.

Third, we will adhere to reform and opening-up and continue to optimize the business environment. We will improve policies and systems, promote the modernization of the industrial supervision system and our capabilities, advance work-style rectification, and continue to improve the quality of our services. In addition, we will further open up the telecommunication market and stimulate the vitality of various market entities. Thanks.

China Electronics News:

Currently, we all attach great importance to the industrial application of scientific and technological achievements. The application of laboratory findings cannot be achieved without the support of pilot-scale testing platforms. What plans will the MIIT make to promote the industrial application of scientific and technological achievements?

Shan Zhongde:

Thank you for your question. I'll answer it. We often say that it is difficult to transform scientific and technological achievements. Whether the achievements are mature and advanced determines their transformation level. Through pilot-scale testing, we can improve the maturity of the achievements, effectively accelerate the transformation of scientific and technological achievements, and speed up scientific and technological innovation. Pilot-scale testing is a transitional test that transforms the new products in the trial production stage into a real production process. This is the key to the transformation of scientific and technological achievements and also an organic component of the manufacturing innovation system. It provides important support for a modern industrial system. Through pilot-scale testing, we can improve product performance and quality, achieve stable mass production, and accelerate the commercialization of innovative products.

In order to better promote high-quality and high-performance development of products, at the beginning of this year, the MIIT worked with relevant departments to formulate the Implementation Opinions on Innovative Development of Pilot-Scale Testing in Manufacturing Industry," with a focus on enhancing our capabilities to support pilot-scale testing and improve the transformation and commercialization of scientific and technological achievements. Relevant work will be carried out in three aspects.

First, we will improve the pilot-scale testing and validation capabilities. Only when our capabilities advance can the transformation level of innovation achievements be well improved. We will conduct projects to improve our pilot-scale testing capabilities and scientifically plan our capacity building for advanced pilot-scale testing in key industries. We will support the layout and construction of a number of major pilot projects with strong driving forces in process-type manufacturing industries such as petrochemicals, chemicals, and metallurgy, as well as in discrete manufacturing industries such as equipment, automobiles, and electronics. At the same time, we will support leading enterprises in the industrial chain to make overall plans on integrating pilot-scale testing with R&D and production, in a bid to establish complete capabilities in pilot-scale testing and promote the full coverage of pilot-scale testing in key industrial chains.

Second, we will build pilot-scale testing platforms. We will enhance technological upgrading, promote the digital, networked, intelligent, high-end, and green development of pilot-scale testing, and build a system for pilot-scale testing service platforms. In particular, we will support the construction of comprehensive and professional public service institutions for pilot-scale testing, build application scenarios and test environments, promote product R&D, design and validation test, and speed up our efforts to meet industry development needs. In addition, we will strengthen the pilot-scale testing function of existing innovation and service platforms, enhance technology development and transformation, and open up experimental capabilities, test sites, and research results.

Third, we will improve the ecosystem for pilot-scale testing development. We will develop pilot-scale testing industries in an innovative way and foster excellent enterprises. We will expand the supply of products, such as precision measuring instruments, high-end test equipment, and design simulation software, and promote pilot-scale testing platforms to provide more accurate and effective services. In addition, we will strengthen the role of standards in providing support and guidance, establish a sound system of standards for pilot-scale testing, release a set of key standards, and cultivate inter-disciplinary talent and outstanding engineers who are good at solving complex engineering problems. We will support local governments to formulate policies and measures for pilot-scale testing development and provide funding, talent, and financial support for pilot-scale platforms.

Our goal is that by 2025, the country's manufacturing industry will witness positive progress in pilot-scale testing; its key industrial chains will see the full coverage of pilot-scale testing; the digital, networked, intelligent, high-end, and green development of pilot-scale testing will be significantly improved; and the pilot-scale testing service system will be continuously improved. At the same time, we will build pilot-scale testing platforms with globally advanced standards, further create a sound ecosystem for pilot-scale testing development, better enable high-quality development of the manufacturing industry, and promote the sustained growth of China's industrial economy.

That's all from me. Thanks.

Xing Huina:

Today's press conference will conclude here. Thank you to all the speakers and journalists.

Translated and edited by Xu Xiaoxuan, Huang Shan, Guo Yiming, Liu Qiang, Liu Caiyi, Yan Bin, Wang Qian, Ma Yujia, Zhou Jing, Wang Ziteng, Liu Sitong, Qin Qi, Li Huiru, Mi Xingang, Yuan Fang, Yan Xiaoqing, Wang Wei, Jay Birbeck, Tom Arnsten 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 Sushe, vice chairman of the National Development and Reform Commission (NDRC)

Mr. Yuan Da, deputy secretary-general of the NDRC and director general of the Department of National Economy of the NDRC

Mr. Jin Xiandong, director general of the Office of Policy Studies of the NDRC

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 17, 2024

Chen Wenjun:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are very pleased to have invited officials from the National Development and Reform Commission (NDRC) to brief you on the current economic situation, explain related policies and take your questions. Joining us today are Mr. Liu Sushe, vice chairman of the NDRC; Mr. Yuan Da, deputy secretary-general of the NDRC and director general of the Department of National Economy of the NDRC; and Mr. Jin Xiandong, director general of the Office of Policy Studies of the NDRC.

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

Liu Sushe:

Thank you, Mr. Chen. Good afternoon. I'm very glad to attend today's press conference held by the SCIO, together with my two colleagues. Yesterday, the National Bureau of Statistics published major indicators showing the national economic performance in the first quarter of this year. Generally speaking, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, the whole nation united and strived through collective effort to implement the strenuous tasks of reform, development and maintaining stability despite a serious and complicated international situation. As a result, the economy continued to recover and improve in the first quarter: economic growth was better than expected; the economic structure continued to improve; the quality and performance of the economy strengthened; employment and prices were generally stable; and overall market expectations improved. Social stability was also maintained, and socioeconomic development got off to a good start. 

Currently, favorable conditions for economic development continue to multiply. However, we still face many risks and challenges in economic development, because the external environment remains complicated, serious and largely uncertain, effective domestic demand is insufficient due to weak expectations, and the foundations for continued economic improvement need to be further consolidated. The NDRC will implement the arrangements of the Central Economic Work Conference and the tasks specified in the government work report, and adhere to the general principle of seeking progress while maintaining stability, promoting stability through progress and establishing the new before abolishing the old. It has intensified efforts on macro regulation, and advanced recently launched initiatives such as large-scale equipment upgrades and replacing old consumer goods with new ones, and intensified efforts to attract and utilize foreign investment. We will step up efforts to promote the issuance of special ultra-long treasury bonds among other measures. We will take steps to further the work in important areas to develop the modern industrial system, expand domestic demand, comprehensively deepen reform and expand high-standard opening-up, promote coordinated urban-rural development, promote green and low-carbon development, ensure basic living standards, improve people's livelihoods, and properly prevent and defuse risks in certain areas. We will actively foster and develop new quality productive forces, enhance guidance over expectations, invigorate market confidence, and do our best to cement and further boost the economic recovery and improvement, so as to accomplish all of the socioeconomic development goals and tasks for the year to a high standard. 

That is all from me for now. Next, my two colleagues and I are happy to answer your questions. Thank you.

Chen Wenjun:

Thank you, Mr. Liu. The floor is now open for questions. Please identify the news outlet you work for before asking your question. 

CCTV:

Since the beginning of this year, we've noticed an increase in projects starting nationwide. What measures have the NDRC taken to drive investment through government funding? What progress has been made on the allocation and utilization of budgetary investment of central government and special bonds issued by local governments? And what measures will the NDRC take to boost private investment? Thank you.

Liu Sushe:

Thank you, I will answer these questions. The Central Economic Work Conference has made important arrangements to increase effective investment, and the government work report also called for actively increasing effective investment. The NDRC has earnestly implemented related requirements, worked with relevant parties to promote investment, and made government investment, such as investment within the central budget, special local government bonds and additional government loans issued in 2023, play their role in driving investment, thereby increasing effective investment. In the first quarter, nationwide investment in fixed assets grew 4.5% year on year, 0.3 percentage point higher than the growth in January and February, and 1.5 percentage points higher than the growth last year, exhibiting a steady recovery. Investment in manufacturing and infrastructure exhibited rapid growths of 9.9% and 6.5%, respectively. Private investment grew 0.5%, with the growth rate continuing to recover, accounting for 51.6% of all investment. Specifically, we have taken measures in the following aspects: 

First, moving faster in allocating planned investment within the central budget. The central government arranged for a total of 700 billion yuan ($96.61 billion) in budgetary investment this year. Together with relevant parties, the NDRC has prioritized quality and efficiency, strengthened its backup of projects and enhanced preparatory work and coordinated work to compile investment plans. So far, more than 200 billion yuan of the planned investment within the central budget has been allocated, accounting for more than 30% of the annual total. Next, we will further accelerate the allocation of planned investment, enhance the implementation of investment plans, conscientiously carry out project construction and supervision, and continue to increase the effectiveness of utilized investment within the central budget. 

Second, completing preliminary screening of projects to be funded by special local government bonds. This year's special bonds total 3.9 trillion yuan. Previously, the NDRC has collaborated with the Ministry of Finance (MOF) to expand the investment areas of the special bonds and business sectors eligible for funding. Recently, according to the responsibilities related to special bonds, the NDRC examined investment areas and preliminary work on projects submitted by local governments and completed the preliminary screening of projects to be funded by special bonds. The results have been sent to the MOF and different localities, the MOF is vetting the costs and income balances of projects financing, and preparatory works have been advanced for various projects. Overall, many projects have passed the preliminary screening and have large demands for funding, which means that we are on solid ground to issue and utilize special bonds this year. We will work with relevant parties to finalize the list of projects for preparation, urge local governments to expedite the issuance and utilization of bonds, and promote various projects to achieve solid progress.

Third, we have worked to accelerate the implementation of projects supported by additional treasury bonds allocated in 2023. By February, the NDRC had released all three lists of projects supported by an additional 1 trillion yuan worth of treasury bonds, allocating the funds to 15,000 specific projects. Since March, the commission has established an online allocation mechanism to ensure these projects begin construction at an earlier date. It has also worked with relevant competent authorities to supervise project implementation and regulate all stages, from start to finish. We have completed supervision over the first batch of projects in 12 provinces, with other provinces also exercising self-supervision. Supervision over the second and third batches of projects will be conducted within this year. Tomorrow, the NDRC will hold a teleconference to discuss the implementation and promotion of projects supported by additional treasury bonds allocated in 2023, briefing on project progress and supervision, and making timely rectifications of the problems revealed. Also, the commission will intensify efforts to ensure that local governments assume their primary responsibilities and promote all these projects to start construction before the end of June.

At the same time, we will work to ensure that government investment and policy incentives effectively drive society-wide investment. Various policies will be fully implemented to guide no-government investment. Specifically, we will give full play to an already-launched national information system of cooperation projects between government and private capital, comprehensively implement the specific requirements of the guidelines on compiling the franchising plan and effectively implement a new mechanism for cooperation between government and private capital. More major projects will be promoted publicly to attract private investment. We will also study expanding the scope of trials to allow more banks to participate in combined debt-equity investments, guide banks to continuously increase financing support for privately invested and national major projects, and take a wide range of steps to stimulate investment from nongovernmental sources. Thank you.

The Beijing News:

The central authorities have decided to issue ultra-long special treasury bonds, starting this year and over each of the next several years, with 1 trillion yuan of such bonds being issued this year. My question is: have you made a detailed plan for when and how to issue these bonds? Thank you.

Liu Sushe:

I will answer this question, to which all parties are now paying close attention. The central authorities have decided to issue ultra-long special treasury bonds, starting this year and consecutively over the next several years. These bonds will be used to implement major national strategies and build up security capacity in key areas. This is a major strategic decision made by the CPC Central Committee and the State Council with a view to realizing the overall goal of building a great country and achieving national rejuvenation. Implementing the plans of the Party Central Committee and the State Council, the NDRC has worked with relevant authorities to research and draft an action plan to support the implementation of major national strategies and enhance the country's capacities to ensure security in key areas. Once approved, the action plan will be implemented.

The action plan is goal-oriented and aims for targeted breakthroughs. It aims to pool all resources to help secure accomplishments and solve problems crucial to China's modernization and development, which have long gone unsolved for years and now require promotion by the central authorities. The action plan ensures that high-quality development and greater security reinforce each other, consolidating the foundation for national security and long-term development. The plan coordinates fixed-asset investments with soft power development and eliminates deep-seated obstacles through reform and an innovative approach. Adhering to an orderly step-by-step approach, it pledges to issue 1 trillion yuan of ultra-long special treasury bonds in 2024.

In terms of the areas involved, the focus will be on achieving greater self-reliance and strength in science and technology, promoting integrated urban and rural development, facilitating coordinated regional development, enhancing the capabilities of ensuring grain and energy security, spurring high-quality development of the population, and comprehensively advancing the Beautiful China Initiative. In terms of implementation, we will ensure that projects proceed according to the plan, that investment funds stay with the projects they are allocated to, and that supervision is focused on fund allocation. The NDRC has taken the lead and worked with relevant government departments to strengthen coordination, provide financial support, improve investment channels, and intensify supervision. The priority is to implement a batch of projects that are sufficiently well-prepared and ready for immediate launch. Meanwhile, we will accelerate the introduction of supporting policies for project implementation, eliminate deep-seated obstacles via structural and institutional reforms, and form synergy with major project construction. This will ensure the high-quality implementation of tasks, guided by clearly defined action plans. Thank you.

Jinan Times APP:

Yesterday, the NBS released China's economic data for the first quarter, much of which exceeded the expectations of some market institutions. What's your view on the current state of the Chinese economy, its prominent features, and future trends? Thank you.

Yuan Da:

Thank you for your question. All sides are interested in China's economic situation. Mr. Liu has just provided an overall introduction regarding the situation in the first quarter. Since the start of this year, the Chinese economy has sustained the momentum of recovery, achieving a stable and positive start. Available data shows increases, progress, and improvement based on overall economic stability.

First, the growth rates of China's major economic indicators saw a steady increase. China's economic growth picked up, with the first quarter's gross domestic product growing by 5.3% year on year and 1.6% quarter on quarter, representing an increase of 0.1 and 0.4 percentage points, respectively, over the fourth quarter of last year. The country also saw accelerated industrial production, with the value added of industrial enterprises above designated size growing by 6.1% year on year, 1.5 percentage points higher than the overall growth rate of 2023. Growth in investment and exports was good. Fixed-asset investment rose 4.5% year on year, 1.5 percentage points higher than the growth rate for the entire year of 2023. China's exports of goods calculated in RMB increased by 4.9%, 4.3 percentage points higher than the annual growth rate for last year.

Second, steady progress has been made in structural adjustments to the economy. The industrial structure is steadily improving, with the acceleration of the transformation of growth drivers. The manufacturing industry has grown rapidly, with a year-on-year increase of 6.7% in the first quarter, including a 7.5% growth in the value added of high-tech manufacturing. Emerging industries are developing rapidly, with 40.6% and 26.7% increases in the outputs of 3D printing equipment and service robots, respectively. Producer services are developing at a faster pace, with a 13.7% increase in the value added of information transmission, software and information technology services, up by 2.5 percentage points from the previous quarter. The three drivers of growth – consumption, exports and investment – are working together more cohesively. Domestic demand continues to act as the main driver of growth, contributing 85.5% to the economic growth in the first quarter. Net exports have driven economic growth more effectively, with the contribution rate of external demand shifting from -3.1% in the previous quarter to 14.5%.

Third, corporate performance, employment and people's income as well as market expectations are steadily improving. The performance of enterprises has recovered quickly, with profits of industrial enterprises above designated size increasing by 10.2% year on year in the first two months. Employment and people's income are improving steadily, with the urban surveyed unemployment rate at 5.2% in March, down 0.1 percentage point from the previous month and the same period last year. Personal per capita disposable income increased by 6.2% in real terms in the first quarter, continuing to outpace economic growth. Market expectations are stable and improving. The manufacturing PMI came in at 50.8% in March, up 1.7 percentage points from the previous month, bouncing back to the expansion zone after five consecutive months of contraction. The production and operation expectation index for manufacturing enterprises was 55.6%, up 1.4 percentage points from the previous month, and the business activity index for non-manufacturing industries was 53%, up 1.6 percentage points from the previous month.

At the same time, we are aware that external risks and challenges remain, and there are still many difficulties in terms of domestic economic operation. In summary, China's economy achieved a good start in the first quarter, laying a solid foundation for achieving the annual targets. As the various policy measures introduced earlier continue to take effect and the new tasks and measures deployed by the CPC Central Committee and the State Council are implemented, the positive trend of China's economic recovery will be continuously consolidated. We are more confident and assured of achieving the annual targets to a high standard. Thank you.

Bloomberg: 

In the data yesterday, we saw that the utilization rate of industrial capacity fell to 73.6% in the first quarter; that was the lowest since the first quarter of 2020, and down from the last three months of last year. This pullback comes as the U.S. and Europe scold Beijing for building up what they see as excess capacity. Would the NDRC like to respond to that? And also, just separately, will the messages that have been delivered by Yellen and Scholz in their visits this month about China's industrial policy in any way shape or influence Beijing's plans? Thank you.

Jin Xiandong: 

Thank you for your questions. The utilization rate of industrial capacity is an indicator reflecting the short-term relationship between production and demand, affected by factors such as demands and profits. Looking at data from recent years, the quarterly fluctuations in capacity utilization rate are relatively large, with the first quarter showing relatively lower rates and the fourth quarter relatively higher, which is related to factors such as the Spring Festival holiday. Our preliminary analysis suggests that the capacity utilization rate is expected to gradually rebound in the coming quarters.

Regarding capacity issues, we need to start from economic laws and view them objectively and dialectically. In a market economy, the supply-demand balance is relative, and imbalance is common. Moderate oversupply is conducive to market competition and survival of the fittest, which is a widespread phenomenon. Some link capacity issues to international trade, believing that exporting more goods indicates overcapacity, which is groundless. China imports a large amount of chips, aircraft, soybeans, crude oil and other goods every year. Does this mean that the exporting countries of these goods all have overcapacity?

In the context of economic globalization, both supply and demand have global characteristics. Each country possesses greater capacities in their respective advantageous industries and lesser capacities in others, which is determined by their comparative advantages. Only by strengthening cooperation can we achieve common development. According to estimates by the International Energy Agency, global demand for new energy vehicles in 2030 will be more than three times that of global sales in 2023. In the process of promoting green and low-carbon transformation and development, there is huge market demand in new energy fields such as electric vehicles, which creates a shared opportunity for the development of all countries. The continuous development of China's new energy industry and the provision of high-quality capacity not only meet its own needs for high-quality development but also make important contributions to global response to climate change and green and low-carbon transformation. Thank you.

Zhonghongwang.com: 

We noticed that the 2024 editions of the Basic Catalog of Public Credit Information and the Basic List of Disciplinary Measures for Dishonest Practices have been issued. Compared with the 2022 versions, what are the main improvements this year? And how will the implementation of the catalog and list be promoted going forward? Thank you.

Jin Xiandong: 

The social credit system is an important part of the socialist market economy and social governance, as well as an important support for the healthy development of the economy and society. In accordance with the requirements of the State Council, since 2021, the NDRC, together with relevant departments, has compiled the National Basic Catalog of Public Credit Information and the National Basic List of Disciplinary Measures for Dishonest Practices, defining the scope of public credit information, the types of punishment measures for dishonest practices, and the applicable subjects. It has played an important role in protecting the legitimate rights and interests of entities whose credit information is gathered.

To further improve the legalization and standardization of the social credit system , the NDRC recently revised and compiled the 2024 editions of the catalog and the list based on the 2022 editions. The update was made in response to the new requirements of economic and social development, as well as new laws, regulations, and important documents issued over the past two years. The revision of the catalog focuses on strengthening intellectual property protection. The most significant change in the new edition is the addition of the "intellectual property information" category, which includes "trademark pledge registration information," "patent mortgage registration information," and "software copyright information." Additionally, entries such as "social insurance payment status and overdue information" have been added. The revision of the list focuses on alignment with new regulations and measures. For instance, in line with regulatory measures in the financial sector, punitive content such as "prohibition from entering the securities and futures markets according to law" has been added, and those responsible for serious violations in the private equity investment fund sector will be banned from participating in the securities and futures markets.

Moving forward, we will collaborate with relevant parties to effectively implement the catalog and the list, further standardize the collection and use of public credit information, strictly enforce disciplinary measures against dishonesty according to the law and regulations, and effectively protect credit entities' legitimate rights and interests. Our focus is on three main areas. First, for local regulations that clearly define the scope of public credit information inclusion and measures for disciplinary action against dishonesty, we will urge local governments to promptly compile supplementary catalogs and lists in accordance with relevant regulations. We will ensure that other local policy documents are not used as the basis for compiling catalogs and lists. Second, in sectors where lists of seriously dishonest entities are established, we will encourage relevant departments or regulatory agencies to introduce management measures for these lists, specifying the criteria for identification, conditions, and procedures for removal, as well as relief measures. Third, we will urge all regions to strictly adhere to the scope defined in the catalog and the list when collecting and using public credit information and carrying out disciplinary actions. If any locality is found to be using credit information outside the scope of the catalog as public credit information or implementing disciplinary measures beyond the list, we will order immediate rectification and issue a notification, resolutely preventing the generalized and abusive use of credit.

Furthermore, we will continue to improve the credit repair mechanism. Recently, the NDRC, in conjunction with the State Administration for Market Regulation, issued a document to promote mutual recognition of credit repair results between the "Credit China " website and the National Enterprise Credit Information Publicity System , thus resolving the issue of "multiple repairs" for business entities. Moving forward, we will strengthen departmental coordination and continuously improve the efficiency of credit repair, enabling eligible business entities to repair their credit in a more convenient and efficient manner in accordance with laws and regulations. This will further promote the construction of the social credit system and continuously stimulate the vitality of business entities. Thank you.

Zhejiang Daily:

I have several questions regarding the private economy. First, I would like to know how the private economy is developing now. Second, as a specialized agency dedicated to promoting the growth and development of the private economy, what specific challenges has the Private Economic Development Bureau solved so far? Last, I would like to know about the next steps to boost the development prospects and confidence of the private economy. Thank you.

Yuan Da:

Thank you for your questions. In the first quarter of this year, the development of the private economy got off to a good start, with positive trends in key indicators. First, the growth rate of industrial production has accelerated. In the first quarter, the value added of private industrial enterprises above designated size increased by 5.4% year on year, an acceleration of 3.4 percentage points compared to the same period last year. In the first two months, the profits of these enterprises increased by 12.7%, which was 2.5 percentage points faster than the overall profit growth rate of industrial enterprises above designated size. Second, the potential for private investment continues to be unleashed. In the first quarter, private investment increased by 0.5%, with the growth rate accelerating by 0.1 percentage point compared to the previous two months. Excluding investment in real estate development, private investment increased by 7.7%, with private investment in manufacturing growing by 11.9% and infrastructure private investment growing by 8.1%. Third, the foreign trade growth rate for private enterprises was significantly faster than the overall level. In the first quarter, imports and exports of private enterprises, denominated in yuan, increased by 10.7%, which was 5.7 percentage points faster than the overall import and export growth rate, accounting for 54.3% of the total. Among them, the growth rates of exports and imports of private enterprises were faster than the overall growth rates by 4.8 and 7.8 percentage points, respectively.

At the same time, we are also aware that the development of private enterprises still faces some difficulties. The NDRC, along with relevant parties, is fully committed to addressing the urgent and pressing issues faced by private enterprises. On the one hand, we are strengthening vertical coordination. We have established a mechanism for regular communication and problem-solving with private enterprises. We have mobilized development and reform departments at the national, provincial, municipal, and county levels to regularly collect, address, provide feedback on, and track the effectiveness of issues reported by private enterprises, striving to ensure that private enterprises genuinely benefit from our efforts. On the other hand, we are strengthening horizontal coordination. We have established an interdepartmental joint meeting mechanism to promote the growth and development of the private economy, collaborating with 42 departments and units to address issues. As of the end of March this year, the NDRC had collected the demands and suggestions of private enterprises through various channels. After deducting duplicates and unverified information, we have collected approximately 560 items, with about 300 items having been processed and further tracked for effectiveness. Our goal is to resolve a category of problems that will benefit a group of enterprises and support an entire industry.

We recently organized a national conference on optimizing the business environment and the first plenary session of the Inter-ministerial Joint Conference on Promoting the Development of the Private Economy, outlining the major tasks for 2024. Next, the NDRC will further intensify its efforts and coordinate its work, focusing on three aspects. First, we will strengthen laws and regulations. We will accelerate the legislative process of the law to support the development of the private sector , and continue to improve the mechanism for working unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector. Efforts will be made to accelerate the legal and institutional arrangements to ensure the equal treatment of state-owned and private enterprises, in order to give full play to the role of the rule of law in consolidating governance foundations, ensuring stable expectations and bringing long-term benefits . Second, we will effectively address problems facing enterprises. We will make the best use of the comprehensive service platform for developing the private economy. We will make concerted efforts to establish a closed-loop system for collecting information, addressing issues that have been identified, providing feedback and monitoring the outcomes of actions. We will intensify coordinated efforts to resolve common issues and prominent problems that hinder the development of the private economy, and ensure the safety, protection, stability and benefits of enterprises. Third, we will continue to create a favorable environment. We will put in place a mechanism for regular government-business communication, organize regular on-site meetings to support the growth of the private economy, and thoroughly implement the plan for nurturing prominent figures in the private economy in the new era. Efforts will also be made to review and promote experiences for boosting the high-quality development of the private economy across the country and actively creating a favorable environment for supporting the growth of the private economy. Thank you.

China Daily: 

The concession model has played a significant role in the construction of infrastructure, such as transportation, municipal services and energy. However, in some areas, there are still problems such as difficulties for enterprises entering the market and lack of standardized management in project implementation. The NDRC recently announced the newly revised Measures for the Administration of Concession for Infrastructure and Public Utilities. How will the new measures help solve these problems? Thank you.

Liu Sushe:

Thank you, I will answer your question. Implementing concession of infrastructure and public utilities is a significant reform measure and institutional innovation in the field of investment and financing. The NDRC, in cooperation with relevant departments and after thoroughly soliciting opinions and suggestions from all parties, recently revised the measures issued in 2015. This revision adheres to a problem-oriented approach, focusing on prominent problems in the field of concession, including the difficulties faced by private enterprises entering the market and lack of standardized management in project implementation, and proposes a series of innovative institutional measures. 

In order to tackle the difficulties faced by private enterprises in entering the market, the new regulations further improve the mechanism and rules in different stages including project initiation, concessionaire selection and project construction and operation, increasing support for private enterprises. First, during the project initiation stage, the measures emphasize the quality of preliminary work, and adopt the principle of sharing risk between government and social capital. Efforts should be made to scientifically assess the feasibility of concession operations and clarify revenue channels. This ensures project implementation and stabilizes the expectations of private investment. Second, in the stage of concessionaire selection, the measures enhance transparency. The regulations require concessionaires to be chosen through a process of open competition, providing diversified participation channels for private enterprises. This approach boosts their investment confidence. Third, during project construction and operation, the regulations protect the legitimate rights and interests of investors. They prohibit differential treatment of concessionaires based on ownership when providing investment and financing support. Additionally, they stipulate that the benefits of cost-reduction, performance-improvement and innovative actions conducted by concessionaires belong to themselves, with the aim of spurring innovation among private enterprises. 

Regarding the lack of standardized management in project implementation, the newly revised measures improve provisions in areas such as the concept and scope of concession, project management and contract fulfillment, striving to enhance project quality and efficiency. First, they emphasize that the primary goal of concession is to serve the public interest and specify that no additional administrative permits are needed. This clear distinction sets it apart from commercial franchises and aims to curb the practice of charging sky-high concession transfer fees. Second, they clarify the responsibilities of the central and local governments and division of labor among different departments, further streamlining the investment management processes. They also define the scope of user fees, improve the price adjustment mechanism and require dedicated funds for specific purposes. Third, they strengthen penetrating supervision and establish a major event notification system. Additionally, from a full lifecycle perspective, they introduce a system to handle complaints and refine the dispute resolution mechanism, urging governments and enterprises to fulfill their obligations.

Next, the NDRC will work with relevant departments to fully implement the newly revised measures, improve the quality and efficiency of concession projects, and continue to stimulate the vitality of private investment. Thank you. 

Hong Kong Bauhinia Magazine:

Following the rise of the ice and snow economy, China saw a tourism boom during the Qingming Festival holiday. What's your take on the trend of the consumer market? And what are the NDRC's considerations in actively fostering new growth drivers of consumption? Thank you. 

Jin Xiandong:

Thank you for your questions. China's consumer market has been recovering since the beginning of this year. As you mentioned, from the ice and snow economy earlier this year to the consumption boom during the Spring Festival holiday, and now to the "holiday economy," we have seen the emergence of diversified consumption hotspots and trends, which has driven a steady growth in consumer spending. In terms of spending on consumer goods, sales revenues of the market continue to recover. In the first quarter, the retail sales of consumer goods surpassed 12 trillion yuan, up 4.7% year on year. With the ongoing consumption upgrade, retail sales of sports and entertainment products and communication equipment grew by 14.2% and 13.2%, respectively. Bulk consumption has maintained steady growth, and green consumption has become a new trend. Data from the China Association of Automobile Manufacturers shows that automobile sales in the first quarter increased by 4.6% year on year. Sales of new energy vehicles rose by 31.8%, increasing their market share to 31.1%. Service consumption has grown rapidly. The retail sales of services in the first quarter grew by 10% year on year, 6 percentage points higher than that of goods. Demand for cultural and tourism consumption is booming. The box office during the Qingming Festival holiday hit a new historical record. Domestic trips made during the holiday increased by 11.3% compared to the same period in 2019, and tourists' spending increased by 12.7%. The enthusiasm for travel during the upcoming May Day holiday is also rising. These not only reflect people's expectations for a better life, but also demonstrate the momentum and vitality of the country's economic recovery.

Looking forward to the year ahead, driven by policies aimed at bolstering domestic demand and fostering consumption, regions and sectors across the country are continuously innovating consumption scenarios and enhancing the consumption environment. With an increasing number of favorable factors supporting consumption growth, there is optimism that consumption will maintain a stable trajectory of improving and upgrading. The NDRC will further leverage the role of the Inter-Ministerial Joint Conference on improving consumption systems and mechanisms, ensuring coordinated efforts across departments and regions to implement and refine policies and measures aimed at promoting consumption. This will facilitate a transition from post-pandemic recovery to sustained expansion in consumption. The work will be focused on the following three key areas:

First, our efforts will concentrate on ensuring stable employment and boosting income to effectively enhance residents' consumption. We will further implement the employment priority policy, organize and carry out a three-year action plan to promote youth employment, strengthen support for entrepreneurship in rural areas and utilize every possible means to stabilize and promote employment. Simultaneously, we will enhance the mechanism for adjusting minimum wage standards, facilitating a reasonable and steady growth in residents' incomes while also diversifying channels to increase property income for both urban and rural residents.

Second, our focus will be on expanding demand and ensuring high-quality supplies, continually fostering new drivers for consumption growth. We will encourage initiatives oriented toward market and consumer demand, nurturing multiple innovative consumption scenarios and formats. This includes supporting the advancement of new technologies such as artificial intelligence and the Internet of Things, actively promoting trends in smart homes, entertainment, tourism, sports events and domestic brands. Additionally, we will collaborate with relevant departments to effectively implement programs such as trade-in schemes for consumer goods.

Third, we will prioritize protecting consumer rights and cultivating a sound consumption environment. This entails working closely with relevant departments to enhance mechanisms for consumer complaints and protection of rights, expediting the establishment of a robust system for safe consumption, strengthening supervision and law enforcement in consumer affairs, regulating online transactions and effectively safeguarding the legitimate rights and interests of consumers. Thank you.

Nanfang Daily, Nanfang Plus:

This year, China's economic performance has started off well, but there are still many existing problems and contradictions. Could you please provide insights into the key measures that will be implemented to further drive the sustained recovery and improvement of the economy? Thank you.

Yuan Da:

Thank you for your question. As I mentioned earlier, the economy in the first quarter has seen a good start, but we are also keenly aware of the challenges and difficulties in economic operation. The external environment is complex, severe and uncertain, with insufficient effective demand. Some industries and enterprises are facing operational difficulties and risks persist in certain areas.

Regarding these issues, the Central Economic Work Conference last year conducted forward-looking analysis and made systematic arrangements. The Government Work Report further outlined plans, and relevant parties are currently working diligently to address them. Some issues have shown signs of improvement. For example, the manufacturing PMI, indicating market expectation, has returned to expansion territory in March. Certain issues have exhibited new changes. For instance, the demand problem has seen net exports contributing positively to economic growth in the first quarter, compared to the negative contribution in the quarter before. Changes have also been observed in market consumption patterns with the growth rate of catering retail sales declining from 13.9% in the same period last year to 10.8%, while the growth rate of petroleum and product retail sales decreased from 10.3% to 4.5%. Some risks and hidden dangers have accumulated over the long term and require further concerted efforts to resolve.

To effectively carry out our work in the second quarter, it is essential to prioritize implementation. We must steadfastly adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and comprehensively implement the arrangements of the CPC Central Committee and the State Council. This will further solidify and bolster the positive trend of economic recovery. Our focus will be on the following three key aspects:

First, we will strive to implement established policies and key tasks more efficiently. This involves ramping up the implementation of macroeconomic policies, effectively utilizing the proactive fiscal policy and prudent monetary policy. We will coordinate policies across various sectors including industry, investment, consumption, employment and pricing to ensure consistency in our macroeconomic policy direction and foster a collective policy effort. Specifically, we will expedite the implementation of major initiatives such as equipment upgrades, trade-in programs for consumer goods and the issuance of ultra-long-term special treasury bonds to support national major strategies and enhance security capacity in crucial areas.

Second, we will intensify efforts to address primary contradictions and challenges. This entails actively stimulating domestic demand by expediting the allocation of central budget investments and the issuance and utilization of local government special bonds. We will employ a new mechanism for collaboration between government and social capital, and increase consumption of such goods as automobiles, household appliances and smartphones and also consumption of services like cultural and tourism services. Furthermore, we will vigorously advance the construction of a modern industrial system, pursue greater self-reliance and strength in science and technology and propel the transformation and upgrading of traditional industries. We will also support the expansion of new growth drivers such as future industries. Through a comprehensive approach encompassing demand expansion, supply optimization, reform deepening and reserve adjustment, we will ensure price stability at reasonable levels. Additionally, we will deepen reforms in pivotal sectors and effectively implement strategies to attract and utilize foreign investment more robustly. Special attention will be given to facilitating employment for certain key groups such as college graduates, and risks and hidden dangers in key sectors will be addressed.

Third, we will enhance major policy planning and conduct preparatory research to maintain policy options for different eventualities. In response to changing domestic and international environments and evolving development needs, we will conduct thorough major policy planning. For instance, we will explore how to establish the new before abolishing the old and accelerate the development of new quality productive forces tailored to local conditions. Furthermore, we will strengthen economic monitoring, forecasting and early warning, and ensure ongoing preparatory research to maintain macroeconomic policy options for different eventualities. We will also enhance our ability to design cross-cyclical policies and provide effective countercyclical adjustments. This will ensure that we are equipped with adequate and effective policy tools to address various impacts and challenges.

The worth of any plan lies in its implementation. In our upcoming work, we will prioritize effective implementation, problem-solving and coordination, enhancing the delivery and application of macro policies at the micro level to ensure tangible results and to make policies more perceptible and accessible. Thank you!

Chen Wenjun:

Due to time constraints, we only have time for two last questions. 

China News Service:

We have observed that the low-altitude economy has sustained momentum since the beginning of the year. Notably, it was mentioned for the first time in the Government Work Report and the NDRC has advocated for the establishment of new growth engines, including the low-altitude economy. Could you provide an update on any current developments within the low-altitude economy and any forthcoming measures to be introduced this year? Thank you.

Jin Xiandong:

Thank you for your questions. Recently, people have been paying close attention to the low-altitude economy . This sector encompasses logistics transportation, urban transport, agriculture, forestry, plant protection, emergency rescue, sports and leisure activities, cultural tourism, and other sectors. It also involves high-end manufacturing, artificial intelligence and other industries. Characterized by broad service fields, long industrial chains, and diversified business formats, the low-altitude economy is emerging as a strategic industry with promising prospects. It is also a typical representative of new quality productive forces. Promoting the development of the low-altitude economy actively and prudently is of great significance and holds a bright future. 

At present, China has a solid foundation for developing the low-altitude economy, which can be understood in three aspects. First, support policies have been well implemented. Relevant departments have introduced a series of management systems focusing on the optimization of flight activity approval procedures, airspace classification, and real-name registration of drones. Second, we have invested more on infrastructure in the sector. In recent years, various regions have strengthened the construction of low-altitude flight infrastructure. By the end of 2023, 449 general aviation airports and 32 flight service stations had been built and registered across the country. Low-altitude economic development scenarios have been explored and expanded based on local conditions. Recently, the Shenzhen-Zhuhai electric vertical take-off and landing (eVTOL) aircraft completed its inter-city flight across the bay, drawing widespread attention. Third, we have the capability to drive the growth of low-altitude economy. China's new low-altitude vehicles are developing vigorously. In particular, new technologies such as information communications, the Beidou Navigation Satellite System, and high-precision navigation are widely used, and some enterprises' autonomous driving technology continues to advance, all of which will provide technical support for the development of the low-altitude economy.

At the same time, it should also be noted that China's low-altitude economic development is still in its preliminary stages and faces many difficulties and challenges. These include strengthening top-level design, improving safety supervision, enhancing infrastructure, refining basic rules and systems, and cultivating market formats. Next, the NDRC will strengthen coordination with relevant departments, insist on making progress while maintaining stability, and better coordinate high-quality development with high-level safety. The NDRC will promote a favorable environment with market demand as the focus, technological innovation as the driving force, and open airspace as the guarantee, aiming to create a good situation for the healthy development of the low-altitude economy, which will feature rich and diversified scenarios, smart and efficient supply, and safe and standardized supervision. Thank you.

China Economic Information Service (CEIS):

In recent years, China has experienced significant trends, including an aging population and a declining birth rate, leading to a higher proportion of elderly citizens. Despite these changes, there remains a gap between the existing elderly care and childcare services and the actual needs of the population. What considerations does the NDRC have in terms of elderly care and childcare services? Thank you.

Liu Sushe:

I will answer this question. Elderly care and childcare services affect hundreds of millions of families and are among the most practical problems that are of the greatest and most direct concern to the people. General Secretary Xi Jinping attaches great importance to elderly care and childcare services and has issued important instructions and directives many times.

Work should be emphasized on advancing Chinese modernization with support from the high-quality development of the population. The CPC Central Committee and the State Council have pursued a proactive national strategy in response to population aging, refined childbirth policies to promote the long-term balanced development of the population, and made a series of major arrangements to improve the elderly care and childcare service systems. The NDRC actively implements and continuously improves elderly care and childcare services in three aspects: expanding supply of services , optimizing existing capacity, and improving quality.

First, we will expand supply of services. To proactively adapt to population aging and meet the growing demand for elderly care and childcare services, the NDRC has revised and issued an implementation plan for the 14th Five-Year Plan, responding actively to the aging population and constructing an elderly care and childcare service system, giving full play to the demonstration and driving role of investment from the central government. A total of 21.8 billion yuan from the central budget was allocated from 2021 to 2023 to drive the expansion of elderly care and childcare services in various regions. In 2024, China will further increase investment support within the central budget, focusing on the building of the "elderly care and childcare" facility service system. At present, the number of childcare centers per 1,000 people in China has reached 3.3, an increase of 0.8 from 2023. Forty-eight prefectures and cities across the country have launched pilot projects for the construction of comprehensive childcare service centers, which will be further promoted on a larger scale in the future. At the same time, we will also promote professional community-based elderly care institutions through investment-led mechanisms, so that people can enjoy elderly care services nearby.

Second, we will optimize existing capacity. The Outline of the 14th Five-Year Plan proposes building a senior care service system that coordinates home-based and community-based institutions and combines medical and health care. Through the continuous promotion of structural adjustments, the proportion of nursing beds in nursing homes exceeded 60% in 2023, achieving the goals listed in the 14th Five-Year Plan ahead of schedule. In the next stage, we will also organize localities to implement several professional and large-scale integrated medical and nursing care projects to improve the overall standard of elderly care services. At the same time, to effectively address the practical problems of insufficient childcare supply and abundant kindergarten resources, we will work with relevant departments to promote the coordinated allocation of childcare services for children aged 0 to 6 years across various places. By supporting kindergartens with declining enrollments in transitioning to childcare services or other developments, we aim to promote an orderly connection between service provisions for children aged 0 to 3 and 3 to 6 years.

Third, we will improve quality. In 2023, China's population aged 60 and over accounted for 21.1% of the total, marking the entry into a moderately aging society , which places higher requirements on the quality of elderly care products and services. This year's "No.1 central document" issued by the central authorities focuses on developing the silver economy and improving the well-being of the elderly and proposes 26 policy measures. Next, we will work with relevant departments to fully implement these policies. At the same time, to further improve childcare services, we will also work with relevant departments to organize and implement the quality assessment of childcare institutions, ensuring that policies are implemented earnestly so that people can receive better services. Thank you.

Chen Wenjun:

Thank you to all the speakers and journalists for your participation. Today’s briefing is hereby concluded. See you next time.

Translated and edited by Liu Sitong, Wang Qian, Li Xiao, Wang Yanfang, Xiang Bin, Huang Shan, Wang Ziteng, Li Huiru, Cui Can, Zhang Junmian, Qin Qi, Yuan Fang, Yan Bin, 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

Speaker:

Mr. Sheng Laiyun, deputy commissioner of the National Bureau of Statistics

Chairperson:

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

Date:

April 16, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we have invited Mr. Sheng Laiyun, deputy commissioner of the National Bureau of Statistics (NBS), to brief you on China's economic performance in the first quarter of 2024, and to take your questions. 

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

Sheng Laiyun:

Friends from the media, ladies and gentlemen, good morning. I'm very glad to be taking part in a press conference held by the SCIO again, and speaking with you. It's great to see many old friends here. As usual, I will start by briefing you on the main indicators and data for the economic performance in the first quarter of this year, and then take your questions.

The national economy got off to a good start in the first quarter.

In the first quarter, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments strictly implemented the decisions and arrangements made by the CPC Central Committee and the State Council; adhered to the general principle of seeking progress while maintaining stability, promoting stability through progress and establishing the new before abolishing the old; intensified efforts on macro regulation; gave priority to ensuring stability in expectations, growth and employment; and continued to push ahead with transforming the growth model, making structural adjustments, improving quality and enhancing performance. As a result, policies continued to take effect, production and demand were stable and even increased, employment and prices were generally stable, market confidence continued to rise, and high-quality development made new progress. The national economy continued its good recovery momentum, getting off to a good start.

According to preliminary estimates, gross domestic product (GDP) in the first quarter reached 29,629.9 billion yuan, up by 5.3% year on year at constant prices, or up by 1.6% over that in the fourth quarter of 2023. By industry, the value added of the primary industry was 1,153.8 billion yuan, up by 3.3% year on year; that of the secondary industry was 10,984.6 billion yuan, up by 6.0%; and that of the tertiary industry was 17,491.5 billion yuan, up by 5.0%.

1. Agricultural production witnessed good momentum and animal husbandry grew steadily.

In the first quarter, the value added of agriculture (crop farming) witnessed a year-on-year increase of 3.8%. The planting area of winter wheat remained stable and generally good growth was observed. The spring farming and sowing were carried out in an orderly manner. According to the year-round planting intention survey, the planting area intended for rice and corn nationwide increased. In the first quarter, the output of pork, beef, mutton and poultry was 24.90 million tons, up by 1.4% year on year. Of this total, the output of pork dropped by 0.4%, while the outputs of beef, mutton and poultry grew by 3.6%, 0.1% and 6.1%, respectively. The output of milk was up by 5.1% and that of eggs up by 1.5%. At the end of the first quarter, the number of pigs registered in stock was 408.50 million, down by 5.2% year on year; and 194.55 million pigs were slaughtered, down by 2.2% in the first quarter.

2. Industrial production registered fast growth and high-tech manufacturing growth accelerated.

The total value added of industrial enterprises above designated size grew by 6.1% year on year in the first quarter. In terms of sectors, the value added of mining increased by 1.6%, that of manufacturing increased by 6.7%, and that of the production and supply of electricity, thermal power, gas and water increased by 6.9%. The value added of high-tech manufacturing increased by 7.5%, 2.6 percentage points faster than the fourth quarter of 2023. Analysis by types of ownership showed that the value added of state holding enterprises was up by 5.2%; that of share-holding enterprises was up by 6.5%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 4.8%; and that of private enterprises was up by 5.4%. In terms of products, the production of electric vehicle charging facilities, 3D printing devices and electronic components increased by 41.7%, 40.6% and 39.5% year on year, respectively. In March, the value added of industrial enterprises above designated size went up by 4.5% year on year, or down by 0.08% month on month. In March, the manufacturing purchasing managers' index (PMI) stood at 50.8%, 1.7 percentage points higher than the previous month. The production and operation expectation index was 55.6%, up by 1.4 percentage points. In the first two months, the total profits made by industrial enterprises above designated size were 914.1 billion yuan, up by 10.2% year on year.

3. The service sector enjoyed sound growth momentum and modern services grew quickly.

In the first quarter, the value added of services went up by 5.0% year on year. Specifically, the value added of information transmission, software and information technology services, leasing and business services, transportation, storage and postal services, accommodation and catering, and wholesale and retail grew by 13.7%, 10.8%, 7.3%, 7.3% and 6.0%, respectively. In March, the index of services production increased by 5.0% year on year. Specifically, the index of services production of information transmission, software and information technology services, leasing and business services, and accommodation and catering went up by 12.7%, 8.2% and 6.2%, respectively. In the first two months, the business revenue of service enterprises above designated size grew by 12.0% year on year, 3.7 percentage points faster than that of 2023. In March, the business activity index for services stood at 52.4%, 1.4 percentage points higher than that of the previous month. The business activity expectation index was 58.2%. Among which, the business activity index for industries like postal services, telecommunication, broadcast, television and satellite transmission services, monetary and financial services and capital market services were above 60.0%.

4. Market sales registered stable growth and service consumption grew quickly.

In the first quarter, the total retail sales of consumer goods reached 12,032.7 billion yuan, up by 4.7% year on year. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 10,428.0 billion yuan, up by 4.6%, and that in rural areas stood at 1,604.7 billion yuan, up by 5.2%. Grouped by consumption patterns, the retail sales of goods were 10,688.2 billion yuan, up by 4.0%; and the income of catering was 1,344.5 billion yuan, up by 10.8%. Goods for basic living enjoyed good sales, with the retail sales of grain, oil and food and of beverage by enterprises above designated size up by 9.6% and 6.5%, respectively. The sales of some upgraded goods grew quickly. The retail sales of sports and recreational articles and of communication equipment by enterprises above designated size grew by 14.2% and 13.2%, respectively. Online retail sales reached 3,308.2 billion yuan, up by 12.4% year on year. Specifically, the online retail sales of physical goods were 2,805.3 billion yuan, up by 11.6%, accounting for 23.3% of the total retail sales of consumer goods. In March, the total retail sales of consumer goods increased by 3.1% year on year, or up by 0.26% month on month. In the first quarter, the retail sales of services went up by 10.0% year on year.

5. Investment in fixed assets rose steadily and investment in high-tech industries grew quickly.

In the first quarter, the investment in fixed assets (excluding rural households) reached 10,004.2 billion yuan, up by 4.5% year on year, 1.5 percentage points faster than that of the previous year; the investment in fixed assets was up by 9.3% with the investment in real estate development deducted. Specifically, the investment in infrastructure grew by 6.5%; that in manufacturing grew by 9.9%; and that in real estate development declined by 9.5%. The floor space of new commercial buildings sold was 226.68 million square meters, down by 19.4% year on year; the total sales of new commercial buildings were 2,135.5 billion yuan, down by 27.6%. By industry, the investment in the primary industry went up by 1.0%, that in the secondary industry up by 13.4%, and that in the tertiary industry up by 0.8%. The private investment went up by 0.5%. Deducting the investment in real estate development, the private investment grew by 7.7%. The investment in high-tech industries grew by 11.4% year on year, of which the investment in high-tech manufacturing and high-tech services grew by 10.8% and 12.7%, respectively. In terms of high-tech manufacturing, the investment in manufacturing of aerospace vehicles and equipment and in the manufacturing of computers and office devices grew by 42.7% and 11.8%, respectively. In terms of high-tech services, the investment in e-commerce services and information services grew by 24.6% and 16.9%, respectively. In March, the investment in fixed assets (excluding rural households) grew by 0.14% month on month.

6. Imports and exports of goods grew steadily and the trade structure continued to optimize.

In the first quarter, the total value of imports and exports of goods was 10,169.3 billion yuan, an increase of 5.0% year on year. The total value of exports was 5,737.8 billion yuan, up by 4.9%. The total value of imports was 4,431.5 billion yuan, up by 5.0%. The trade balance was 1,306.3 billion yuan in surplus. Imports and exports by private enterprises increased by 10.7%, accounting for 54.3% of the total value of imports and exports. Imports and exports with Belt and Road partner countries grew by 5.5%, accounting for 47.4% of the total value of imports and exports. Exports of mechanical and electrical products grew by 6.8%, accounting for 59.2% of the total value of exports. In March, the total value of imports and exports was 3,558.0 billion yuan, down by 1.3% year on year. The total value of exports was 1,986.9 billion yuan, down by 3.8%; and that of imports was 1,571.0 billion yuan, up by 2.0%.

7. Consumer prices were generally stable and producer prices for industrial products dropped.

In the first quarter, the consumer price index (CPI) maintained the same level year on year. Grouped by commodity categories, prices for food, tobacco and alcohol went down by 1.7%; clothing up by 1.6%; housing up by 0.2%; articles and services for daily use up by 0.8%; transportation and communication down by 1.4%; education, culture and recreation up by 2.3%; medical services and health care up by 1.4%; and other articles and services up by 2.9%. In terms of food, tobacco and alcohol prices, the prices of fresh fruit went down by 7.3%, pork down by 7.0%, fresh vegetables down by 3.9% and grain up by 0.4%. The core CPI excluding the prices of food and energy grew by 0.7% year on year. In March, the CPI went up by 0.1% year on year, or down by 1.0% month on month.

In the first quarter, producer prices for industrial products went down by 2.7% year on year. Specifically, the prices in March dropped by 2.8% year on year, or down by 0.1% month on month. In the first quarter, the purchasing prices for industrial producers went down by 3.4% year on year. Specifically in March, the prices dropped by 3.5% year on year, or down by 0.1% month on month.

8. Employment was generally stable and the surveyed unemployment rate in urban areas declined slightly.

In the first quarter, the urban surveyed unemployment rate averaged 5.2%, down by 0.3 percentage points over that of the same period last year. In March, the surveyed unemployment rate in urban areas was 5.2%, 0.1 percentage points lower than that of the previous month and that of the same month last year. The surveyed unemployment rate of population with local household registration was 5.3% and that of population with non-local household registration was 5.1%, of which, the rate of population with non-local agricultural household registration stood at 5.0%. The urban surveyed unemployment rate in 31 major cities was 5.1%. Employees of enterprises worked an average of 48.6 hours per week. By the end of the first quarter, the number of rural migrant workers totaled 185.88 million, up by 2.2% year on year.

9. Residents' incomes increased steadily and the incomes of rural residents grew faster than that of urban residents.

In the first quarter, the nationwide per capita disposable income of residents was 11,539 yuan, a nominal growth of 6.2% year on year; and the real growth was 6.2% after deducting price factors. In terms of permanent residence, the per capita disposable income of urban households was 15,150 yuan, a nominal growth of 5.3% year on year and a real growth of 5.3%; and the per capita disposable income of rural households was 6,596 yuan, a nominal growth of 7.6% year on year and a real growth of 7.7%. In terms of income sources, the nationwide per capita salary income, net business income, net property income and net income from transfers grew by 6.8%, 6.8%, 3.2% and 4.8% in nominal terms, respectively. The median of the nationwide per capita disposable income of residents was 9,462 yuan with nominal growth of 6.4% year on year.

Generally speaking, the national economy made a good start in the first quarter with positive factors amassing, laying a strong foundation for achieving the annual development targets. However, we should be aware that the external environment is becoming more complex, severe and uncertain, and the foundation for stable and sound economic growth is not yet solid. Next, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirits of the Central Economic Work Conference and the "two sessions" (the annual gatherings of the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference), and adhere to the principles of pursuing progress while ensuring stability, promoting stability through progress and establishing the new before abolishing the old. We should fully and faithfully apply the new development philosophy on all fronts, accelerate the efforts to create a new development pattern, strive to promote high-quality development, actively cultivate and develop new quality productive forces, and strengthen the implementation of macro policies. We must effectively boost economic vitality, prevent and defuse risks, improve public expectations, consolidate and enhance the momentum for economic recovery and growth, and continue to effectively pursue higher-quality economic growth and appropriately increase economic output.

There are the main indicators and data regarding China's economic performance in the first quarter of this year. Now, I'm glad to answer your questions. 

Shou Xiaoli:

Thank you, Mr. Sheng, for your introduction. Now, the floor is open for questions. Please state which news organization you represent before asking your questions. 

Phoenix TV:

We've just reviewed the released data. Overall, major economic indicators show quite positive performance in the first quarter. How would you evaluate the overall economic performance in the first quarter? 

Sheng Laiyun:

Thank you for your question. The economic indicators in the first quarter did indeed perform well. In the first quarter, we intensified the implementation of macroeconomic policies with concerted efforts from various regions and sectors. Policies were enacted proactively and implemented rigorously, leading to sustained economic recovery and a favorable start to the year. I'd like to summarize the first quarter's economic performance with four groups of key terms.

The first key term is continuing recovery. In the first quarter of this year, the overall national economy continued last year's upward trend, with crucial indicators of production demand showing positive growth. In terms of production, the primary industry remained relatively stable, with a year-on-year growth of 3.3%, according to data recently released. The secondary industry grew by 6%. The growth rate of value added to industrial enterprises above the designated size increased by 3.1 percentage points year on year and by 0.1 percentage point compared to the fourth quarter of last year, showing stable growth. The service industry grew by 5%, with contact-intensive services, such as accommodation, catering, transportation and tourism, continuing to grow rapidly. As we know, last year witnessed rapid development in the service industry following the new phase of pandemic prevention and control. Despite a high growth rate in the service industry last year, this year has witnessed stable growth, demonstrating steady production with upward trends. In terms of the three major demands, indicators of investment, consumption and import and export demonstrate overall stable growth. Fixed asset investment in the first quarter increased by 4.5% year on year, a 1.5 percentage points higher from the 3% growth rate of last year. Total retail sales of consumer goods increased by 4.7%, with service retail sales growing by 10%. According to data from customs, import and export grew by 5%, reaching a record high in six quarters. Therefore, the three major demands increased with stability. 

The second key term is a steady start, which is reflected in four major macroeconomic indicators: GDP growth, employment, inflation and international balance of payments. In the first quarter, GDP grew by 5.3% year on year, slightly higher than the growth rate of 5.2% in the fourth quarter of last year, indicating stable growth. Employment indicators show steady improvement, with the urban surveyed unemployment rate averaging 5.2% in the first quarter, a decrease of 0.3 percentage point compared to the same period last year. With the economy picking up, the overall employment situation has improved. The consumer price index remains consistent compared to the first quarter of last year, while the core CPI, excluding food and energy, increased by 0.7% year on year, similar to quarters from last year. The international balance of payments remains overall balanced. Looking at these four major macroeconomic indicators — GDP growth, employment, inflation and international balance of payments — the overall economic trend in the first quarter remains stable, with a sound start.

The third key term is progress with stability. It refers to the national economy achieving reasonable growth in quantity while also achieving effective improvement in quality, thereby continuing to make new advancements in high-quality development. First, innovation development has achieved new results. In the first quarter, the value added of high-tech manufacturing industries above the designated size increased by 7.5% year on year, 2.6 percentage points higher than the fourth quarter of last year. Coordinated development mainly refers to continued improvement of industrial and demand structures. In the first quarter, domestic demand contributed 85.5% to economic growth. Both the internal structures of industries and demands have seen positive improvements. Green development has continued to make new achievements. In the first quarter, energy consumption per unit of GDP decreased by 0.1% year on year. If the consumption of raw materials and non-fossil energy is deducted, energy consumption would decrease even further. Open development and high-level opening-up have further advanced, and China's total imports and exports with the Belt and Road countries grew by 5.5%. Shared development has continued to make new achievements, with the per capita disposable income of residents nationwide increasing by 6.2%. These indicators suggest that high-quality development continues to make new progress.

The fourth key term is promising start. It's precisely because the economy has continued to recover with a smooth initial process and steady progress that we have achieved a promising start. Looking at various major economic indicators, we find that the stability and coordination of economic performance have strengthened, market vitality has increased and the confidence of market entities has continued to rise. The PMI, which was previously released, stood at 50.8% in March, rebounding to the expansion zone. This reflects the overall positive momentum of sustained recovery in the economy, leading to a promising start overall.

However, we must be sensibly aware that the global situation remains complex and challenging, and domestically we are at a critical stage of structural adjustment and transformation. The confidence of market entities and the momentum of economic recovery both need further enhancement. Going forward, we must resolutely implement the decisions and arrangements made by the CPC Central Committee and the State Council to promote stable economic development. We need to further intensify policy implementation, consolidate the foundations of the economy, continue enhancing overall market confidence and economic momentum and solidify the basis for continued improvements with economic recovery. Thank you!

The Beijing News:

We have noticed that the CPI has been positive for two consecutive months, but in March the growth rate significantly narrowed, only rising by 0.1%, which is lower than external expectations. What are the reasons for this? What are the predictions for future trends in CPI? Thank you.

Sheng Laiyun:

Thank you for your questions. We are very concerned with changes in market prices. First, the CPI in March, as you just mentioned, decreased by 1% month on month and increased by 0.1% year on year, with the increase dropping by 0.6 percentage point compared to the previous month. This is mainly due to seasonal price declines after the Spring Festival, with significant drops in food prices and prices of services such as tourism. After the Spring Festival, the weather has warmed up and major agricultural products are in ample supply, leading to a 3.2% decrease in March's food prices. That led to a fluctuation of nearly 0.6 percentage point in CPI month on month. After the Spring Festival, tourism prices, including airfare, significantly decreased, driving down prices for non-food items. According to estimates, the decrease in non-food prices resulted in a 0.37 percentage point month-on-month decrease in March's CPI. The seasonal decline in food and non-food prices after the Spring Festival caused a significant month-on-month decrease in CPI during the month of March.

Second, despite a month-on-month decrease in March, the CPI showed overall stability in terms of quarterly performance. The core CPI, excluding energy and food prices, was 0.7% in the first quarter, which was essentially the same as the fourth quarter of last year. The CPI stayed negative for three consecutive months in the fourth quarter of last year, with the average CPI for the fourth quarter down by 0.3% year on year. However, in the first quarter of this year, the CPI remained unchanged from a year earlier, and increased by 0.3 percentage point compared to the fourth quarter of last year. This was consistent with the momentum of economic recovery.

Third, CPI fluctuations in the first quarter were due to distinct structural and temporal factors. Among the eight major categories in the consumer price index, food prices were down by 3.2%, and transportation and communication decreased by 1.4%, according to the newly released data. Prices for other categories, including clothing, housing, education, culture and recreation, as well as other goods and services, all witnessed increases. Particularly, prices for education, culture and recreation, as well as clothing prices, even increased by more than 1.5 percentage points. Considering both monthly and quarterly figures, the changes in the consumer price index demonstrate distinct structural characteristics. 

Lastly, regarding the future trend, we believe that the CPI is expected to recover slowly. As the economy sustains positive momentum, we will see increasing demand, which serves as an important fundamental factor to support the recovery of the CPI. Moreover, agricultural products such as hogs are also seeing a turning point in price adjustment. Consumption during upcoming holidays, such as the Labor Day holiday, will continue to drive consumer price recovery for travel-related items. In addition, there are other factors that can boost demand, hence having impacts on consumer prices. Overall, the CPI is expected to witness gradual recovery from a low level. Thank you.

CCTV:

The economic growth in the first quarter represents good momentum for economic recovery. Did this performance exceed expectations? What are the reasons behind this? Thank you.

Sheng Laiyun:

In the first quarter, China's GDP grew by 5.3% year on year. Many people believe this figure is higher than expected, but I'd like to elaborate on this a bit. First, China's 5.3% GDP growth portrays real-world conditions. From the perspective of calculation, the 5.3% GDP growth in the first quarter was mainly driven by improvement in industry and services. The industrial added value grew by 6% in the first quarter, marking a significant increase compared to the level of the same period last year and that during the fourth quarter. Mainly due to the recovery of exports and the adoption of a series of policies, the country saw increasing demand in the first quarter. Hence, the industrial sector achieved a sound performance. According to preliminary calculations, the 6% growth in the industrial sector contributed 37.3% to overall GDP growth, which promoted growth of the latter by nearly two percentage points. The service sector, due to the Spring Festival, made a larger contribution to GDP growth in the first quarter. As such, the service sector continued its rebound from a relatively high level last year. In particular, the contact-based service sector witnessed rapid growth. In the first quarter, retail sales of services grew by 10%, six percentage points higher than that of commodities. You must have noticed reports focused on this. According to data released by the Ministry of Culture and Tourism, the number of travelers and tourism consumption during the Spring Festival holiday exceeded the levels recorded during the same period in 2019, and the number of tourist trips increased by 34.3% year on year. The service sector has maintained a good momentum of development, with its contribution to economic growth being 55.7% in the first quarter. Industry and services contributed more than 90% of GDP growth. Based on calculations, the GDP growth in the first quarter was consistent with industrial recovery and the rebound of the service sector . 

Second, the 5.3% GDP growth was achieved on solid ground. The GDP is calculated by the production approach and verified by the expenditure approach. The three major demand indicators released today all witnessed stable rebound. Fixed-asset investment grew by 4.5% in the first quarter compared to the same period last year. This figure didn't deduct commodity prices, and the real growth rate would be 5.9% if commodity prices were deducted. Total retail sales of consumer goods increased by 4.7%, and exports rose by 5%. Based on calculations, the growth rates of the three major indicators were consistent with that of the GDP.

Third, the growth of physical indicators was consistent with the GDP growth. To evaluate China's economy, people tend to use freight volume or electricity generation volume for verification. In the first quarter, the total electricity consumption increased by 9.6%, with industrial electricity consumption rising around 8%. Freight volume grew by 5.3%, commercial passenger traffic increased by 20.5% and port cargo throughput increased by 6.1%. When it comes to exports, port freight volume is a very straightforward indicator. Additionally, the bank loan data that everyone follows also shows that the M2 balance at the end of March increased by 8.3% year on year. Given all this, we can see that the growth of physical indicators was consistent with the 5.3% GDP growth.

Of course, we also noticed that there were imbalances in economic recovery. GDP calculation is a combination of the added value of all industries, which is an indicator that reflects the overall situation. We can see that the recovery of consumption was not as well as production, and the recovery of micro, small and medium-sized enterprises (MSMEs) was not as good as large enterprises. As such, there were disparities in economic recovery, and people may also have different opinions when it comes to these figures. Going forward, we will pay closer attention to imbalances in economic development, especially the development of MSMEs, while reinforcing the basis for economic recovery.

21st Century Business Herald:

Mr. Sheng mentioned just now that the industrial recovery situation was relatively good in the first quarter. Could you please provide an overall evaluation of the recovery of industrial production in the first quarter? And what are the reasons for this, as well as the subsequent trends and prospects? Thank you.

Sheng Laiyun:

Thank you for your question. Industry is indeed a highlight in the recovery and development of the first quarter, with China's value-added industrial output increasing by 6%. This is also a relatively good performance in recent years, with an increase of 3.1 percentage points compared to the first quarter of last year, and an acceleration of 0.8 percentage point compared to the fourth quarter of last year, indicating a positive trend in industrial economic recovery. Why was industrial performance better than expected in the first quarter? What are the reasons? Our analysis covers several factors.

First, business confidence is increasing driven by policy. You are all aware that from last year to this year, and especially this year, all regions and departments released a series of policies and measures to support the development of the real economy. Moreover, all regions have been accelerating the implementation of policies. These policies have had positive effects on enhancing the drive for enterprise production, improving the environment for enterprise development, and boosting confidence in enterprise development. China's official manufacturing PMI, which has just been released, came in at 50.8% in March, up 1.7 percentage points from February. Furthermore, the PMI for large, medium and small enterprises are all above the critical threshold of 50%, which has not been easy. This indicates that confidence among enterprises is increasing.

Second, both domestic and external demand have changed for the better. From the perspective of external demand, as the world economy shows signs of recovery, our exports in the first quarter were better than expected. According to the customs statistics that have just been released, exports increased by 4.9%. We have our own data, called the export delivery value of industrial products. It was -2.2% in the fourth quarter of last year and 0.8% in the first quarter of this year, showing a rebound of 3 percentage points. From the perspective of domestic demand, we are more interested in one data point, which is the value added of the consumer goods manufacturing industry. Because from the perspective of household consumption, the focus is mainly on purchasing processed consumer goods. Last year, the value added of consumer goods manufacturing enterprises was around zero and continued to run at a low level. The value added of consumer goods manufacturing enterprises grew by 4.2% in the first quarter of this year, an increase of more than 4 percentage points. Therefore, we can feel the improvement in both domestic and external demand, supporting industrial economic growth.

Third, the industrial recovery is related to the promotion of some recent policies. The central government introduced a policy to promote large-scale equipment upgrades and the trade-in of consumer goods, which also boosted business confidence to some extent, prompting some enterprises to schedule production in advance. Another reason for the significant rebound is related to the continuous cultivation and driving force of new growth momentum. Among the newly released data, the value added of high-tech manufacturing industry above the designated size increased by 7.5% in the first quarter, 1.4 percentage points higher than the growth rate of industrial enterprises above the designated size. We have calculated that the major high-tech manufacturing industry in the first quarter drove the value-added industrial output by 1.1 percentage points, highlighting the role of new growth momentum and new industries.

Of course, the relatively good industrial growth rate also has a certain relationship with the base from last year. During the first quarter of last year, some regions were still affected by the pandemic and the industrial value-added growth was 2.9%. As such, there is indeed a base effect, but the main reasons are the three factors I just mentioned. Looking ahead, as the several factors supporting the improvement in industrial recovery continue to play a role in the foreseeable future, we predict that the positive trend of industrial economic recovery will continue. Of course, further consolidating the foundation of the recovery requires increasing support for the real economy. Thank you.

Reuters:

Some March economic indicators such as foreign trade, credit and commodity prices show weak economic growth and insufficient aggregate demand. What are the reasons for this? And will a slowing global economy and a higher statistical base later in the year jeopardize hitting this year's growth target of around 5%?

Sheng Laiyun:

Thank you for your question. It's a good question. You may have noticed that some economic indicators declined in March compared to January and February. This decline was from a statistical perspective. We conducted a thorough analysis, finding that one very important reason for this is that the comparison base from last year was relatively high, meaning that the actual production level for March was not low. In January and February last year, some regions were still affected by the pandemic, and some companies delayed their production, including exports and order fulfillment, until March. In March and April last year, whether in terms of industry or imports and exports, some major indicators had relatively high base numbers, and some industries saw a rebound in production and sales, resulting in a relatively high comparison base. Due to this relatively high base, the year-on-year growth rate this year declined. As I just mentioned, the monthly production level is not low. Let me give you an example. In terms of the added value of industries above designated size, when converted into added value per working day, March's figures show faster growth compared to January and February. However, in terms of year-on-year growth, there was a 2.5 percentage points decline in March compared to January and February. Some physical quantity indicators, such as industrial electricity consumption, exhibit similar characteristics. The average daily industrial electricity consumption in March was higher than that of January and February, and the same is true of freight volume and loan indicators. As such, when observing changes in China's economy, it is important to look not only at year-on-year growth data but also at month-on-month changes and some absolute quantities. This is especially true when observing short-term economic fluctuations.

Second, we should pay attention to the future trend of the economy, including the trend in the second quarter and whether the 5% target can be achieved for the whole year. Currently, there is an accumulation of positive factors supporting the continued recovery of the Chinese economy. First, as mentioned earlier, external demand is picking up. Although the global economy faces complex situations and great uncertainties this year, some leading indicators show that the global economy is recovering. The global manufacturing PMI in March was 50.6%, marking the third consecutive month of recovery. I also noticed the indicators released by the World Trade Organization (WTO) and the China Council for the Promotion of International Trade (CCPIT) on global freight volume. The WTO predicts that global trade in goods growth may reach 2.6% this year, an improvement from last year's negative growth, which is conducive to supporting export demand. Internally, many economic indicators, including the recently released PMI and other related demand indicators, show that China's economy is recovering. This recovery is especially driven by policy support. Earlier this year, to continue stimulating demand, the central government introduced policies to support equipment upgrades and the trade-in of consumer goods. These policies are the driving force behind the ongoing economic recovery. In addition, based on the prospects for the next stage, the holiday economy will continue to show positive effects. As a result, the economy is expected to maintain its recovery momentum in the future.

Last, I would like to emphasize that when we observe the Chinese economy, in addition to changes in economic aggregate, we should also pay more attention to the improvement of quality and efficiency, especially the effectiveness of China's economic structural adjustment and the progress of high-quality development. Since the 18th CPC National Congress, China's economy has entered a new stage of transformation, upgrading, and high-quality development. Traditional industries have been adjusted, new driving forces have been accelerated, and high-quality development has continued to advance. Even though in the past few years, we have faced a complicated and challenging global landscape and undergone growing pains of domestic structural adjustment and transformation, including adjustments to the real estate sector, China has persisted with economic transformation and upgrading, and high-quality development continues to yield new results. To illustrate this, let me provide some data. In terms of innovation and development, R&D expenditure accounted for 1.91% of GDP in 2012 and 2.64% last year. The urbanization rate has also been increasing steadily, rising from about 53% in 2012 to 66.2% last year, an increase of nearly 1 percentage point annually. Moreover, China's share of the international export market has grown from about 10% in 2012 to around 14% currently. In addition, our economic aggregate and residents' income have more than doubled compared to 2012. This demonstrates that our innovative development, coordinated development, green development, open development, and shared development have continued to make steady progress, and the quality of development has been consistently improving.

Next, China is still in the stage of structural adjustment, transformation, and upgrading. Some companies need to undergo transformation and upgrading, which means they have to endure some growing pains during this process. Due to the adjustment of traditional industries and the cultivation of new driving forces, it is natural for some economic growth fluctuations to occur. However, the quality of development continues to improve, and high-quality development continues to make progress. This is what constitutes the basis for China's economic recovery. Therefore, when we say that the economy is improving, it is not just about a rebound in the growth rate but also an improvement in quality. Only by looking at the Chinese economy in this way can we have a more comprehensive view and enhance our confidence in China's economy. I am fully confident about the Chinese economy's continued improvement and high-quality development. Thank you.

Red Star News:

How were real estate investment and sales in the first quarter? Have the measures introduced in some places to guarantee the delivery of housing projects and promote real estate financing taken effect? What is the outlook for the industry in the future? Thank you.

Sheng Laiyun:

Thank you for your questions. The real estate market is of great concern to everyone. Based on real estate investment and sales in the first quarter, the housing market is still in the process of adjustment. Regarding real estate issues, there are a few points to consider:

First, the decline in real estate sales indicators expanded in the first quarter of this year, which can be attributed to the high base of comparison last year. As I mentioned earlier, real estate sales saw a "mini-boom" in March due to special circumstances last year. The sales area of newly built commercial housing in March was approximately 138 million square meters, the highest among all months last year. The growth rates of new commercial housing sales and sales area in April were the fastest in the 12 months of last year. The sales area of newly built commercial buildings in March this year was 113 million square meters, which was about 25 million square meters less than in March last year. The year-on-year growth rate is slowing down. However, I also compared the total real estate sales volume in each month after June last year and found that the total real estate sales volume in March this year was higher than the absolute level in each month in the second half of last year. This suggests that while real estate sales in the first quarter of 2024, especially in March, did experience a decline due to the high base of comparison from the same period last year, the absolute amount is not low.

Second, the effects of policy measures supporting the stable development of the real estate sector are continuing to manifest. Let me provide you with a few pieces of data: Regarding the "three major projects," after the Central Financial Work Conference last year, both the central government and local authorities accelerated the progress of the "three major projects," which included the building of government-subsidized housing and dual-use public infrastructure that can accommodate emergency needs, as well as the redevelopment of urban villages, amid efforts to foster a new development model for the real estate sector. Data shows the "three major projects" have boosted real estate investments by 0.6 percentage point, demonstrating their effectiveness. The second set of data pertains to the positive impact of the "white list" mechanism on financing amounts for compliant real estate projects. As we know, this year, in order to address financing difficulties faced by real estate enterprises, relevant departments have introduced policies to support financing projects included in the "white list." According to first-quarter data, the decline in domestic loans for real estate enterprises narrowed by 1.2 percentage points, directly credited to the application of the financing policies associated with the "white list" mechanism. The third set of data concerns real estate sales. This year various localities have intensified their efforts to support the stable development of the real estate sector, including measures such as relaxing purchase restrictions and lowering interest rates for housing provident fund loans. Moreover, over 30 cities have implemented selling-old-for-new schemes. As a result of local governments' collective efforts, the decline in both the sales area and sales volume of newly built commercial housing in the first quarter narrowed by 1.1 percentage points and 1.7 percentage points, respectively, compared to the January-February period. These three sets of data demonstrate the continued apparent impact of policies supporting the stable development of the real estate sector.

Lastly, I would like to emphasize that we should have a rational perspective on this round of real estate adjustments. I also shared some views on this issue during the press conference in the third quarter of last year. On one hand, after more than two decades of rapid expansion, the real estate sector is undergoing a needed adjustment according to the growth cycle of the sector. The current adjustment in the real estate sector is beneficial to the subsequent establishment of new models for its high-quality development. As the traditional production capacity is cleared from the market, developers can build better houses and provide better services, which is also beneficial for consumers. Furthermore, China's ongoing urbanization serves as a fulcrum to support its real estate market. As of 2023, the urbanization rate of the country's permanent residents was 66.2%, but the urbanization rate in terms of registered permanent residents was still less than 50%. There are 180 million rural migrant workers who have not yet gained permanent urban residency, and the proportion of home purchases in cities among these migrant workers is not high. Among our existing housing stock, small- and medium-sized units below 90 square meters still account for the vast majority. With the improvement in people's living standards and further promotion of urbanization, the overall rigid demand and need for improved housing remain sufficient. The Chinese real estate market still has the conditions to support its sustainable and healthy development. We need to rationally view the current round of real estate adjustments. Thank you.

Bloomberg:

You just mentioned that China's GDP grew 5.3% year-on-year in the first quarter of 2024, and the figure was thought to be higher than expected. Does this mean that the economy is relatively stable and does not require strong policy support? Or do you think there are still some weaknesses in the current economic situation, such as imbalanced recovery? The second question is related to industrial output in March, which seems to be relatively weak compared to expectations. Does this indicate any slowdown in the manufacturing sector? Thank you.

Sheng Laiyun:

Thank you for your question. I actually indirectly addressed this question earlier. First, regarding fluctuations in industrial output in March, it reflects some changes in the domestic and international environment, indicating the need for further enhancement of industrial development momentum. On the other hand, the decline in industrial output in March is partially influenced by the comparison base, and we maintain an optimistic outlook for the future. Furthermore, concerning the foundation for economic recovery, the 5.3% GDP growth rate indicates the national economy has sustained recovery momentum and got off to a good start. However, as I explained earlier, there are indeed imbalances evident in the process of economic recovery and the performance of various industries. The growth momentum of the consumer goods manufacturing sector is still lower than the average growth rate of industrial companies above designated size, and disparities exist among different regions. Traditional industries recovered at a slower pace due to the drag from real estate adjustments. However, the value added of high-tech manufacturing grew 7.5% year-on-year, 1.4 percentage points higher than the average level of industrial companies above designated size. They became an important driving force behind the relatively good performance of the industrial sector within the first quarter. Therefore, the economic recovery is indeed uneven and exhibits some differentiation. However, I think this is normal. As I mentioned earlier, the Chinese economy is currently in a new stage of transformation and development. From the perspective of transformation, some traditional industries do require adjustments, while emerging industries are performing well. Looking ahead, our policies will continue to increase support for the development of the real economy. In addition to overall support, we will pay more attention to addressing imbalances in economic development, accelerate the cultivation of new industries, particularly emphasizing technological innovation, and coordinate the technological transformation of traditional industries with the development of new industries and the cultivation of future industries. Thank you.

China Profiles:

The fifth national economic census is an important investigation to take stock of the country’s conditions and strengths. Could you share with us the progress of the census? And how to ensure the quality of its statistics? Thank you.

Sheng Laiyun:

Thank you for your questions as well as your interest toward our statistical work and the economic census. The fifth national economic census is a large-scale investigation of the national conditions and strengths as our country enters a new era. Under the firm leadership of the Party committees and government departments at all levels, and with the concerted efforts of census workers and statisticians, the progress of the fifth economic census has been very smooth. We have nearly completed the on-site registration phase with a data submission rate already exceeding 90%. Currently, we are transitioning from on-site registration to reviewing the data. After this review, we will conduct quality checks and then compile the data. The results of the fifth economic census will be released to the public in the third quarter, providing a clearer and more comprehensive understanding of our economic landscape.

Regarding data quality, the NBS places high importance on this aspect, treating it as the lifeline of our work. Striving for high-quality census results is both a goal and a requirement of the fifth economic census. From the outset, we established a comprehensive system for data quality control that is based on Statistics Law and regulations regarding census, and have implemented corresponding quality control measures. Throughout the census process, we have strictly adhered to these protocols, including enhancing training for census workers to ensure accurate data collection. We also have robust monitoring mechanisms in place to ensure data is accurately recorded and reviewed on an ongoing basis. As I just mentioned, we have moved into the data verification stage, where we will further examine the submitted data, including logical consistency checks. If issues arise, we will return to the businesses for verification. Additionally, we will conduct a nationwide sampling survey to assess the quality of reported data, with dedicated survey teams from the NBS performing on-site verifications. We have a comprehensive set of procedures in place to control the quality of census data. I also want to reassure everyone that all personal and business information is strictly confidential, so there should be no room for concerns when providing accurate information. We welcome public oversight and particularly encourage continued support and monitoring from the media. Thank you.

China National Radio:

My question is about developing new quality productive forces. The central government highly values fostering and developing new quality productive forces. Could you provide an update on the progress made in the first quarter by emerging sectors, high-tech manufacturing and green energy products?

Sheng Laiyun:

Thank you for your question. As you just said, the central government highly values the fostering and development of new quality productive forces, which have been a key focus in both last year's Central Economic Work Conference and this year's government work report. Party committees and government departments from various localities have put forward a series of policy measures to support enterprise innovation in an effort to foster and develop new quality productive forces.

From the data for the first quarter, we can see positive outcomes from these policies. The new quality productive forces are showing encouraging results across various industries, operational activities and products. Let me share some specific data:

Emerging industries have maintained accelerated development. In Q1, the value added of high-tech manufacturing above designated size grew by 7.5% year on year, or 2.6 percentage points higher than Q4 last year. The high-tech service sector also maintained a rapid growth trajectory, with the value added in information transmission, software and information technology services growing by 13.7%, which is 2.5 percentage points higher than in Q4 of last year. We've also seen fast-paced development in new industries and a rapid increase in new products. Particularly, the production of new energy vehicles grew by 29.2% in Q1 on top of several years of high growth. Solar battery production increased by 20.1%, and products related to photovoltaics such as polycrystalline and single crystalline silicon saw growth rates exceeding 50%. Service robots increased by 26.7%, and industries such as semiconductors and 3D printing maintained double-digit growth. New products continue to emerge and sustain high growth rates.

Furthermore, new business models continue to emerge with strong growth. Driven by the ongoing development and application of big data, the internet and the Internet of Things, we are seeing a transformation in production methods and the continued rise of new business forms. Areas such as live-streaming and instant retail are particularly vibrant. Online retail sales, reflecting new business model trends, grew by 11.6% in Q1, continuing the trend of double-digit growth from previous years.

In addition, new investments and infrastructure projects maintain good development momentum. In the first quarter, investment in high-tech industries increased by 11.4% year on year, which was 1.1 percentage points higher than that of last year, and investment in high-tech service industries grew by 12.7%. Additionally, the construction of a batch of new infrastructure projects is accelerating, including 5G base stations. As of the end of February, 132,000 new 5G base stations have been added, bringing the total number to over 3.5 million. The implementation of new infrastructure projects, such as the Eastern Data and Western Computing project and optical fiber communications, is also being accelerated. The digital economy is an important aspect of new quality productive forces. The central and local governments attach great importance to the development of the digital economy and are accelerating the digital transformation of traditional industries and the development of the digital industry. The estimated value added of core industries of the digital economy is expected to exceed 12 trillion yuan in 2023, accounting for around 10% of GDP.

As we can see from the data in these areas, new quality productive forces are being continuously cultivated and developed under the high attention of local governments as well as various ministries during the transformation and upgrading of enterprises. Next, we must continue to accelerate the cultivation and development of new quality productive forces, as they are the greatest driving force and the best focus for China's economic transformation and high-quality development. Therefore, we must plan comprehensively and take into account local conditions. While upgrading and transforming traditional industries, we should also accelerate the cultivation of emerging and future industries to strengthen and expand new quality productive forces. Thank you.

Shou Xiaoli:

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

ThePaper.cn:

In the first quarter, the producer price index (PPI) continued its downward trend that began last year, and the month-on-month improvement was not significant. How does the NBS assesses the current PPI situation? And what are your predictions for the next stage? Thank you.

Sheng Laiyun:

Thank you for your questions. Among the many positive indicators released, the PPI is indeed worthy of close attention, so your question is very pertinent. The PPI, or the producer price index, refers to the prices at which industrial producers sell their products. In the first quarter of this year, the PPI decreased by 2.7% year-on-year, and in the fourth quarter of last year, it decreased by 2.8%. There are a few points I would like to make about this:

First, analyzing this round of adjustments and the trend, the PPI has begun to show a narrowing decline. Why is this? Let's extend the time frame. This round of PPI adjustments started in October 2022, when PPI was -1.3%. At that time, it was the impact of U.S. interest rate hikes and the decline in international energy prices that caused the PPI to turn negative for the first time. Since then, the decline continued to widen, reaching a low point in June last year when the PPI was -5.4%. However, as China's economy has recovered and improved, the decline in the PPI has continuously narrowed. If we plot a graph for these 18 months, it forms a standard V-shape. Therefore, although the PPI is still decreasing, the rate of decline is narrowing, which is consistent with China's economic recovery.

Second, from a structural perspective, the PPI in the first quarter and March still demonstrated strong structural characteristics. Moreover, the decline in the PPI is due to multiple reasons, including demand factors, as well as cost reductions brought about by industrial restructuring, transformation and technological progress. Therefore, this round of PPI decline is caused by multiple factors from a structural perspective. From an industrial perspective, the top three industries that had a significant impact on PPI's decline last year were coal mining, washing and dressing, non-metallic mineral products, and ferrous metal smelting and pressing. First, the price of coal mining decreased by 15.3% in the first quarter, which had an impact on PPI of nearly 11%. Second, the non-metallic mineral products industry, mainly cement, declined by 7.9% in the first quarter, dragging down the PPI by nearly 15%. Third, the ferrous metal smelting and pressing industry, mainly steel, saw a price decline of 5.0%, which also had an impact on PPI of about 11%. As a result, these three leading industries combined had a nearly 40% impact on the decline of PPI. However, these industries are often related to adjustments of relevant industrial chains brought about by the current industry adjustments, so they are not entirely due to demand. Therefore, this round of PPI adjustments is related to our structural adjustment, transformation and upgrading, as well as industrial differentiation, and cannot be attributed solely to insufficient demand.

Third, you asked about the future trend, which is also something we are very interested in. Our initial assessment suggests that the PPI will continue to show a narrowing decline and a steady increase. First, the economy is recovering, and overall demand is also picking up, which is conducive to supporting the recovery of prices. Second, the stimulatory effects of policies will continue to emerge, especially with the implementation of policies related to promoting large-scale equipment upgrading and replacing old consumer goods with new ones, which will positively impact related industries. Third, there are structural adjustments in some industries. Our greater efforts in supply-side structural reform and transformation and upgrading and the elimination of some traditional industries will bring positive changes to the market supply-demand relationship. There is also a statistical factor, known as the carry-over effect. Last year, the carry-over effect on PPI in the first quarter was -2.3 percentage points, while in the second quarter, it was only -0.9 of a percentage point. In other words, compared with the first quarter, the carry-over effect alone narrowed by 1.4 percentage points in the second quarter, which will support a significant narrowing of the decline in PPI. Of course, price changes are directly related to market changes, so there is considerable uncertainty, and we will continue to monitor the changes in PPI. However, the overall trend will continue to show a narrowing decline and a recovery toward a positive trend, which is consistent with the general trend of China's economic development. Thank you.

Yicai:

What are the highlights for the consumer data from the first quarter? During the recent Qingming Festival holiday, both the number of trips taken and tourism consumption achieved double-digit growth compared to the same period in 2019. What are the positive and effective supporting factors for subsequent recovery of consumption?

Sheng Laiyun:

Thank you for your questions. The changes in the consumer market are indeed one of the well-performing areas in economic operations for the first quarter, with quite a few highlights. The consumption data introduced just now shows that retail data grew by 4.7%, and the growth rate of service consumption was also relatively fast. Moreover, the stable growth of consumption is an important source of support for economic growth. As I mentioned earlier, with GDP growth, the contribution rate of domestic demand is 85.5%, of which consumption contributes 73.7%. This demonstrates that consumption indeed played an important supporting role in economic growth in the first quarter.

Regarding the good performance and characteristics they have shown, I believe there are a few points you can pay attention to.

First, overall consumption of physical goods has been relatively stable. The total retail sales of consumer goods increased by 4.7% in the first quarter to surpass 12 trillion yuan, marking a relatively high level for the first quarter. The physical goods consumption of residents, including food consumption, daily necessities consumption and some housing-related consumption, has also remained relatively stable. Therefore, the overall physical goods consumption of residents is relatively stable.

Second, service consumption has grown relatively fast. In the first quarter, service retail sales increased by 10%, which is 6 percentage points higher than that of goods retail. From the residents' perspective, per capita service consumption expenditure grew by 12.7%, which is also 4.4 percentage points higher than the 8.3% growth in the overall consumption of residents. Besides, the share of residents' service consumption expenditure has reached 43.3%, an increase of 1.6 percentage points compared to the same period last year. Service consumption is accelerating.

Third, online consumption remains robust. As I also announced earlier, the online retail sales of physical goods has increased by 11.6%. What's more, driven by the adoption of new technologies, online sales models are constantly innovating and setting new sales records.

Fourth, there has been continued improvement in consumption upgrade. After resolving the issue of ensuring adequate food and clothing, and then achieving a moderately prosperous society in all respects, there has been an accelerated increase in consumption for the purpose of development and enjoyment. This aligns with the major trends of consumption and industrial upgrading. This is also why tourism has remained popular this year and why there's a fast growth rate in high-level consumption areas such as education, training and elderly care. From a retail perspective, according to the data just introduced, sales of sports and entertainment goods have increased by 14.2%, and sales of communications equipment by 13.2%. From the perspective of residents, our expenditures on transportation and communications and on education, culture and entertainment have all seen double-digit growth, exceeding 10%. This indicates that the trend towards upgraded consumption is moving in a positive direction.

Fifth, holiday consumption continues to surge. During the Spring Festival and Qingming Festival holidays, both the number of travelers and tourism revenue exceeded the levels from 2019, with year-on-year growth rates in the double digits. Furthermore, from the north to the south and from the east to the west, various localities are continuously creating new internet-famous brands. This has propelled holiday consumption and significantly bolstered the recovery of the service industry and the economy.

Another notable characteristic is that green consumption is gaining popularity. Everyone is pursuing healthier and greener modes of travel. A very prominent feature is that, despite the declining trend in sales of fuel vehicles in recent years, sales of new energy vehicles have continued to be strong. According to data from the China Association of Automobile Manufacturers, new energy vehicle sales increased by more than 30% in the first quarter. Additionally, the penetration rate of new energy vehicles now exceeds 40%, with the latest data showing 41.6%, a 7.6 percentage point increase from the same period last year. All these aspects not only demonstrate sustained vitality in the consumption field but also present new trends in consumption development, therefore worth paying close attention to.

Looking to the future, the favorable conditions supporting consumption continue to increase. For example, policy support, including the policy for replacing old consumer goods with new ones, is expected to make a profound impact. Additionally, localities are creating consumer brands, improving consumption conditions and fostering an environment conducive to residents' consumption. The economy is also continuously warming up and improving, with residents' incomes and employment both on the rise, which is conducive to enhancing the capacity for consumption. Furthermore, consumer confidence is steadily recovering. So overall, taking these favorable conditions into account, our future consumer market is expected to continue to improve. Especially considering China's large population and the scale advantage of consumption, the vast market consumption potential also serves as a ballast stone for the continuous and stable improvement of the Chinese economy. Of course, we must also recognize that consumption ultimately depends on income support. Although income growth is recovering, the lingering impact of the COVID-19 pandemic in recent years means that income levels still need to continue to rise. While consumer confidence has been recovering for several consecutive months, the overall consumer confidence index remains below the critical value. These unfavorable factors remind us that we must continue to strengthen the foundation for economic recovery and improvement and enhance the capacity and confidence of residents' consumption, which is a long-term task. However, I remain optimistic about the continuous improvement and future prospects of consumption. Thank you.

Shou Xiaoli:

Thank you, Mr. Sheng Laiyun, and thank you to all the journalists that are present. That concludes today's press conference.

Translated and edited by Xu Xiaoxuan, Wang Yiming, Liu Jianing, Zhou Jing, Gong Yingchun, Wang Wei, Wang Mengru, Huang Shan, Yan Bin, Wang Qian, Liu Caiyi, Zhang Junmian, Ma Yujia, Guo Yiming, Wang Ziteng, Li Huiru, Zhang Rui, Yuan Fang, 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 Lingjun, vice minister of the General Administration of Customs of China (GACC)

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

Chairperson:

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

Date:

April 12, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we will conduct a routine release of economic data from the first quarter of this year. We are very pleased to be joined by Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC), and Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC, who will brief you on China's import and export performance in the first quarter of 2024, and also take your questions.

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

Wang Lingjun:

Ladies and gentlemen, good afternoon. It is my pleasure to meet with you again. Welcome everyone to today's press conference. I will start by briefing you about China's import and export performance in the first quarter of this year, and then my colleague and I will take your questions.

In the first quarter of this year, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, China has adhered to the general principle of pursuing progress while ensuring stability. It has also worked to fully and faithfully apply the new development philosophy on all fronts, moved faster to create a new pattern of development, and thoroughly promoted high-quality development. As a result, the national economy has sustained its recovery momentum, making steady improvements in the quality of foreign trade and new milestones in the scale of imports and exports. Specifically, the country's foreign trade in the first quarter has the following five features:

First, China's scale of foreign trade during the January-March period exceeded 10 trillion yuan (about $1.38 trillion) for the first time in history, while the growth rate hit a six-quarter high. Customs statistics show that in the first quarter of the year, the country's foreign trade in goods stood at 10.17 trillion yuan, up 5% year on year. Specifically, exports from China increased 4.9% year on year to 5.74 trillion yuan, while imports rose 5% year on year to 4.43 trillion yuan, 4.1 and 2.3 percentage points faster than the growth rate in the fourth quarter of 2023, respectively.

Second, China's trade with the Belt and Road Initiative (BRI) partner countries and other BRICS countries grew at a rate higher than the overall level. From January-March, the country's trade with BRI partner countries reached 4.82 trillion yuan, up 5.5% year on year, accounting for 47.4% of total foreign trade volume, 0.2 percentage points higher than the same period last year. Notably, trade with member states of the Association of Southeast Asian Nations (ASEAN) increased 6.4% year on year to 1.6 trillion yuan. Trade with the nine other BRICS nations reached 1.49 trillion yuan during the same period, up 11.3% year on year, accounting for 14.7% of the country's total foreign trade volume. In addition, trade with the European Union, the United States, South Korea and Japan hit 1.27 trillion yuan, 1.07 trillion yuan, 535.48 billion yuan and 518.2 billion yuan, accounting for a combined share of 33.4% of the total.

Third, the imports and exports of private businesses in China sustained double-digit growth. In the first quarter of the year, the foreign trade value of the country's private businesses reached 5.53 trillion yuan, an increase of 10.7% over the same period last year, accounting for 54.3% of the country's total. Concurrently, the imports and exports of foreign investors in the country stood at 2.97 trillion yuan, accounting for 29.3% of the total, while that of state-owned enterprises stood at 1.64 trillion yuan, accounting for 16.1%.

Fourth, China's exports of machinery and electronic products as well as labor-intensive products witnessed robust growth momentum. During the January-March period, the country's export value of machinery and electronic products expanded 6.8% year on year to 3.39 trillion yuan, accounting for 59.2% of the total. Among this, the exports of computers and computer components, vehicles and ships saw year-on-year increases of 8.6%, 21.7% and 113.1%, respectively. In addition, the exports of labor-intensive products amounted to 975.72 billion yuan, up 9.1% over the same period last year. Within this category, exports of textiles and garments, plastic products, as well as furniture and furniture parts grew by 5.4%, 14% and 23.5% year on year, respectively.

Fifth, the imports of major commodities and consumer goods related to people's livelihoods expanded steadily. In the first quarter of this year, the country's imports of major commodities, including energy resources, metal ores and grain increased 6.2% year on year. Among them, the imports of energy products such as crude oil, natural gas and coal grew 8% year on year to 286 million metric tons; and metal ores like iron and aluminum increased 5% to 374 million metric tons. Grain imports amounted to 38.42 million metric tons, up 5.1% year on year. Concurrently, the imports of machinery and electronic products expanded 9.6% year on year. Among them, the imports of electronic components rose 13%. Meanwhile, imports of textiles and garments as well as dried and fresh fruits and nuts expanded 12.6% and 18%, respectively.

Overall, China's foreign trade got off to a robust and promising start in the first quarter of the year, laying a solid foundation for meeting the annual target of steadily increasing the volume and raising the quality of foreign trade. Currently, the international environment is undergoing profound changes, and the global economy is facing multiple grave challenges, all of which will pose greater tests to China's foreign trade. However, at the same time, we should also acknowledge that the country's overall economy continues improving; its comprehensive competitiveness in foreign trade keeps strengthening; and its sound growth momentum in imports and exports is being further consolidated.

Customs authorities bear the responsibility of safeguarding borders and driving development. We will work under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and earnestly act on the decisions of the Central Economic Work Conference and the government work report. We will adhere to the general principle of pursuing progress while ensuring stability. By enhancing the construction of Smart Customs and leveraging its enabling role in building China's strength in customs services, we will ramp up efforts to optimize the business environment at ports, facilitate cross-border commerce, and steadily increase the volume and quality of foreign trade. Through these efforts, we aim to play our part in achieving the annual socioeconomic growth targets and celebrate the 75th anniversary of the founding of the People's Republic of China with significant accomplishments.

Shou Xiaoli:

Thank you, Mr. Wang. The floor is now open for questions. Please identify the media outlet you work for before raising your questions.

China Daily:

You just mentioned that China's foreign trade maintained steady growth in the first quarter, with increases in both imports and exports. How do you view China's foreign trade situation in the first quarter? Considering the current global economic situation and geopolitical changes, what difficulties and uncertainties might we anticipate in the second quarter? What measures is the customs department implementing to address these? Thank you.

Wang Lingjun:

Thank you for your questions, which touched on three aspects. I'll address each one in turn. Against the backdrop of the country's sound economic fundamentals, and thanks to the hard work, pioneering spirit, and innovation of the vast number of people engaged in foreign trade, China has made new strides in the high-quality development of foreign trade. We have continued to improve the quality of foreign trade while sustaining the volume of imports and exports. As a result, China's foreign trade saw growth in both imports and exports in the first quarter.

First, we have enhanced the dynamism of market entities. In the first quarter, the number of foreign trade enterprises engaged in imports and exports grew by 8.8%. The number of private companies and foreign-invested enterprises increased by 10.4% and 1%, respectively. Additionally, the foreign trade volume of state-owned companies reached a historic high during the same period.

Second, we have cultivated new growth drivers. In the first quarter, China's imports and exports of intermediate goods increased by 4.4%. Meanwhile, the imports and exports of China's cross-border e-commerce grew by 9.6%. The number of overseas warehouses established by Chinese enterprises for cross-border e-commerce purposes rose by 11.8%. We have accelerated the development of new business forms and models. 

Third, regional development has leveraged its distinctive strengths. The country's eastern, central, western, and northeastern regions have each capitalized on their respective advantages and made contributions. The eastern region has taken on major responsibilities, with the growth rate of exports and imports in the first quarter being 2.7 percentage points and 1.2 percentage points higher than the overall rate, respectively. The central region has shown a shift toward advanced and green transformation in the manufacturing sector, with exports of advanced equipment and electric vehicles increasing by 42.6% and 107.3%, respectively. The western region has managed industrial transfers in an orderly manner, and the imports and exports of the processing trade have shifted from decline to growth. New progress has been made in foreign trade to fully revitalize northeast China. The volume of imports and exports in the first quarter exceeded 300 billion yuan for the first time.

Fourth, our trading partners have become more diversified. In the first quarter, China's trade with BRI partner countries increased by 5.5%, 0.5 percentage point higher than the overall growth rate. Trade with Latin America and the five Central Asian countries achieved double-digit growth. During the same period, trade with traditional markets such as the U.S. and Japan showed positive recovery trends, with the decline in imports and exports in the first quarter narrowing by 5.9 percentage points and 1.2 percentage points, respectively, compared to 2023. 

Looking ahead to the second quarter, foreign trade faces some difficulties and challenges, including geopolitical tensions and trade protectionism. However, there are also many favorable factors for foreign trade development. Global trade is showing signs of a steady recovery. On Wednesday, the WTO also predicted a rebound in trade, estimating that the volume of world trade in merchandise will grow by 2.6% in 2024. The latest report from the U.N. Conference on Trade and Development is also optimistic about the global trade in goods. According to the China Customs Trade Prosperity Statistical Survey , in March, there was a significant increase in the proportion of enterprises reporting higher export and import orders compared to the previous month. It is expected that China's imports and exports will continue to improve in the second quarter, maintaining a growth trend for the first half of the year.

To act in accordance with the guidelines of the CPC Central Committee and the State Council, customs will focus on the high-quality development of foreign trade and continue to introduce new policies and measures to improve regulatory efficiency and services. In March, we convened a meeting on launching a special campaign aimed at promoting cross-border trade facilitation, during which we proposed 33 reform and innovation measures to benefit enterprises and the public. Moving forward, customs will continue to follow up on implementing these policies and measures. Additionally, we aim to better understand the expectations and demands of enterprises and local governments. We will focus on promoting trade facilitation, optimizing the business environment at ports, reducing costs and fees for enterprises, and fostering new growth drivers for foreign trade. We will introduce more timely and effective policies and measures and spare no effort to support the steady and high-quality development of foreign trade. Thank you.

Red Star News:

As previously mentioned, the imports and exports of private enterprises maintained double-digit growth in the first quarter, continuing to play a leading role in China's foreign trade. What were the key achievements? What steps are planned to help private enterprises participate in international competition?

Wang Lingjun:

Thank you for your questions. In recent years, private enterprises have delivered remarkable results in foreign trade, continuously providing surprise and excitement. Mr. Lyu will provide more detailed information about this topic.

Lyu Daliang: 

Good afternoon, friends from the media! I am very pleased to share insights into the import and export performance of private enterprises in the first quarter. 

The imports and exports of private enterprises maintained strong momentum in the first quarter, achieving double-digit growth. Mr. Wang also mentioned this earlier. I believe that there are at least three aspects worth applauding and celebrating for private enterprises, which are as follows:

First, increased contribution. Looking at the number of market entities, about nine out of 10 foreign trade enterprises with import and export records are private enterprises. In terms of growth rates, the export and import growth rates of private enterprises are 4.8 percentage points and 7.8 percentage points higher, respectively, than the overall rate. The share of foreign trade volume accounted for by private enterprises in China's total imports and exports has increased to 54.3%, further cementing their principal role in stabilizing foreign trade. 

Second, the innovation capacity of private enterprises is becoming increasingly stronger. Private enterprises are the driving forces behind innovation and creativity, and they have become the largest importers and exporters of high-tech products in China. In the first quarter, imports and exports of high-tech products by private enterprises grew by 16.2%, 12.2 percentage points higher than the overall growth rate for similar products. Specifically, exports of ships and marine engineering equipment, and rail transportation equipment increased by 90.5% and 24.9%, and imports of high-end machine tools grew by 14.8%. Private enterprises have made significant contributions to accelerating the cultivation and development of new quality productive forces in foreign trade.

Third, private enterprises have increasingly diverse trading partners. Chinese private enterprises have fearlessly ventured into new markets and expanded their business to all corners of the world. They have established close trade connections with various countries, including Chile in South America, Norway in Northern Europe, and neighboring Southeast Asian countries. In the first quarter, private enterprises performed well in both traditional and emerging markets. Their imports and exports with the European Union, the United States, and Japan increased by 1.8%, 9% and 6.7%, respectively. Meanwhile, their imports and exports with ASEAN, Latin America, and Africa grew by 10.9%, 20.2% and 12.8%, respectively.

Overall, private enterprises have shown positive momentum and promising prospects in foreign trade. Next, customs will continue to work unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector, as well as fully implement the guidelines and their supporting measures on promoting the development of the private sector, with a focus on explaining policies for enterprises and further addressing prominent problems concerning market access, access to factors of production, impartial law enforcement, and protection of rights and interests. Through these efforts, we will continuously stimulate the endogenous motivation and innovative vitality of foreign trade companies, including private enterprises. Thank you.

Reuters: 

Good afternoon. A question from Reuters. Analysts say the fact that producer prices continue to decline compared with 2023 levels is evidence of overcapacity among Chinese manufacturers, as that suggests factory owners are cutting costs in the distribution and sales process. China's exports fell 7.5% in March in U.S. dollar terms. So does that show Chinese factory owners are no longer able to cut prices to attract buyers abroad? And what can they do in the future to improve their fortunes? Thank you.

Wang Lingjun:

Thank you for your question. I would like to address it from two perspectives.

First, we do not think that the decline in producer prices necessarily indicates the so-called "overcapacity." The decrease in product prices can often be attributed to various factors, such as fluctuations in raw material prices, technological updates, and voluntary concessions made by manufacturers. Particularly in today's rapidly evolving technological landscape, companies continuously invest in research and development, innovation, and the application of new technologies and processes. This not only improves product quality but also greatly reduces production costs, allowing for the expansion of profit margins downstream.

Second, the global popularity of Chinese products stems from their innovation and quality. For example, China's strong research and development capabilities have led to the creation of smart and environmentally friendly home appliances that provide consumers with a better experience, meeting their higher demands for quality of life. Similarly, China's reliable, durable, and high-performance engineering machinery, coupled with comprehensive after-sales service, enjoys global popularity and can be found at major overseas construction sites. Additionally, Chinese ceramics, an important symbol of Chinese civilization, embody Chinese culture and stories and are exported internationally. These achievements are the results of our companies' diligent efforts and the rational choices of numerous users and consumers. Thank you.

China News Service:

In 2024, the BRICS group expanded to include 10 member countries. Could you please make an introduction to China's trade with other BRICS countries? What are the expectations for the future? Thank you.

Lyu Daliang:

Since the first BRICS summit in 2009, China's trade relations with other BRICS countries have become increasingly close. The import and export value between China and the other four BRICS countries — Russia, India, Brazil, and South Africa — grew from 960.21 billion yuan in 2009 to 4.32 trillion yuan in 2023, with an average annual growth rate of 11.3%. This growth rate is 3.8 percentage points higher than China's overall import and export growth rate during the same period.

In 2024, the BRICS cooperation mechanism entered a new stage as Saudi Arabia, Egypt, the United Arab Emirates, Iran, and Ethiopia officially became members of the BRICS group. In the first quarter, China's imports and exports with the other nine BRICS countries reached 1.49 trillion yuan, an increase of 11.3%, accounting for 14.7% of the country's total imports and exports. China's cooperation with the other BRICS countries exhibits strong complementarity across various sectors, characterized by distinct features in imports and exports.

China is Brazil's largest trading partner and largest export market, while Brazil is China's largest trading partner in Latin America. In the first quarter, China's exports to Brazil reached 114.28 billion yuan, an increase of 25.7%, and imports from Brazil amounted to 208 billion yuan, with a growth rate of 30.1%, indicating a rapid increase in imports. Trade between China and Russia continues to expand. In 2023, the two countries achieved their joint annual trade target of $200 billion set by their top leaders ahead of schedule. Since the beginning of this year, trade between China and Russia has continued to grow in sectors such as energy, automobiles, and general machinery equipment. Trade between China and India has seen year-on-year growth for five consecutive quarters, with an increase of 8.5% in the first quarter, maintaining a good development momentum. South Africa has been China's largest trading partner in Africa for 14 consecutive years. In the first quarter, China's exports to South Africa amounted to 35.11 billion yuan, while imports from South Africa reached 66.46 billion yuan.

In addition, China has maintained good cooperation with Saudi Arabia and the United Arab Emirates when it comes to energy trade. In the first quarter, both countries were among China's top 10 import sources for energy products. China has carried out pragmatic cooperation with Egypt and Ethiopia in the field of infrastructure. In the first quarter, China's exports of foreign contracted projects to the two mentioned countries achieved rapid growth. Also, our small commodities are very popular in Iran. In the first quarter, China's export volume to Iran through market procurement trade increased by 15.2%. This answers your first question about the import and export situation of China and other BRICS countries.

Regarding your second question, I think the prospect for cooperation in development is promising, and we are fully confident. The latest forecast from the International Monetary Fund shows that the volume of trade in goods and services in developing countries will grow by 4.5% in 2024, higher than the overall global growth rate of 3.3%. As representatives of emerging markets and developing countries, the BRICS countries are expected to become the current global accelerators for economic recovery and trade development. So far, the BRICS countries' volume of trade in goods holds about 20% of the world's total but trade with each other only accounts for about 10% of their respective total foreign trade, meaning there is still great potential for growth. It is believed that, as the content and areas of cooperation among the BRICS family are further enriched and developed, bilateral and multilateral economic and trade exchanges are expected to achieve more positive growth. Thank you.

Bloomberg:

My question is about the trade balance last year. Last year, the customs administration reported a good surplus of 823 billion dollars but the State Administration of Foreign Exchange reported a good surplus of 594 billion dollars. Why is there such a difference between these two numbers which should indicate the same thing? The State Administration of Foreign Exchange explained that free trade zones were part of the reason for this difference but this difference in the data only started to appear in 2021 and there hasn't been a radical expansion of free trade zones since 2021. So, can you please explain in detail what you think is the reason that these two numbers are so radically different? Thank you.

Lyu Daliang:

I understand that your question is essentially about the difference between the surplus and deficit of trade in goods according to customs' statistics and the international balance of payments for trade in goods according to the statistics released by the State Administration of Foreign Exchange (SAFE). What I want to say is that the statistical principles of these two numbers are different. The trade in goods calculated by customs is based on the cross-border principle. As long as goods move across borders, they will be included in customs' statistics, regardless of whether or not the ownership of the goods is transferred. The balance of payments for trade in goods in the international payments statistics, compiled by SAFE, is based on the principle of transfer of ownership, regardless of whether or not goods move across borders. This is an important difference between the two statistical methods.

I can give two examples to elaborate. The first example is what is now called factory-free manufacturing, which means that multinational companies entrust domestic companies to manufacture products and then sell them domestically. In this case, there is no cross-border flow of goods, and customs does not count them. But its ownership has been transferred and the balance of payments needs to be calculated. This difference is more prominent when it comes to electronic products, processing and manufacturing.

The second example is processing of supplied materials and bonded warehousing. Ownership of processing of supplied materials does not transfer across borders. The ownership of some bonded warehousing products does not transfer when they cross the border. This kind of cross-border flow must be reflected in customs' statistics, but not in foreign exchange receipts and payments statistics, which is also the reason for the difference.

In addition, the pricing methods of customs' statistics and balance of payments statistics are also different. For customs' statistics, as we all know, imports to China are calculated based on CIF pricing, while exports are calculated based on FOB pricing. China's balance of payments statistics, including our trade in goods and international balance of payments, are based on FOB price, excluding freight charges and insurance. Because of the differences in these statistical principles and methods, the two numbers will show certain changes as the situation changes. For specific figures, both statistics are accessible to the public. You can do your own calculation. Thank you.

CMG:

We have noticed that imports of bulk commodities such as energy and metal ores continued to increase in the first quarter. Does this mean that domestic demand has increased? As mentioned in this year's Report on the Work of the Government, we should actively increase the import of high-quality products. Can you brief us on the import situation? In addition, what are your expectations for China's import trends this year? Thank you.

Wang Lingjun:

Thank you for your questions. For many years, China has insisted on implementing the strategy of increasing imports. Imports have maintained a good upward trend. Specifically speaking:

First, the import market is huge. China has been the world's second largest import market for 15 consecutive years, with a cumulative import scale of nearly 200 trillion yuan. According to preliminary estimates, last year China accounted for 10.6% of the total global value of imports, continuing to maintain a high standard of more than 10%. In the first quarter of 2024, China's imports have increased in both volume and price, and the scale of imports reached a new high. It can be said that China's large market provides great opportunities to the world.

Second, the demands of production and consumption increased. As the Chinese economy continuously recovers and grows, industrial production has expanded quickly, and consumer needs have increased steadily. The country's huge market and the significant demand for both production and consumption have driven an increase in imports of raw materials, key components, and consumer goods. In the first quarter of this year, the volume of energy product imports and metal ore imports rose by 8% and 5%, respectively. Meanwhile, the import volume of integrated circuits and semiconductor manufacturing equipment increased by 14.3% and 82.7%, respectively. The growth rates of imports in sectors like textiles, garments, dried and fresh fruits, beef, televisions, and racing bicycles all exceeded double-digit increase, and imports of consumer goods related to people's basic everyday needs also had a relatively good performance. Imports of various high-quality products from around the world provide not only more and better choices for domestic consumers but also more opportunities for foreign enterprises.

Third, imported products varied in different regions. Leveraging their respective advantages and actively involving themselves in the nation's new development dynamic, all regions nationwide have diligently implemented the strategy for coordinated regional development . These efforts have brought a fresh look for imports featuring distinctive characteristics, high complementarity, and great diversity. Playing a leading role in opening-up, the Yangtze River Delta region is the most important field for importing high-tech products and consumer goods. Nine mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area performed strongly in the electronics industry, with the import volume of computer accessories and integrated circuits up by 74.2% and 19.2%, respectively, accounting for over 40% of the national total. The Beijing-Tianjin-Hebei region plays a prominent role in guaranteeing the supply of bulk commodities and covers more than half of the country's crude oil, natural gas, and grain imports. The central and western areas accelerated their industrial transformation and witnessed double-digit growth in imports of semiconductor manufacturing equipment and flat-panel display modules. Traditional industrial bases in the northeast region were revitalized, with imports of automotive parts and agricultural machinery increasing by 4.5% and 62.2%, respectively, both surpassing the national average.

Generally speaking, thanks to its vast market and varied market demands, the Chinese economy is poised to swiftly unleash its market potential, offering sustained support for imports and bringing more benefits to a wider global market. Moving forward, the GAC will follow the guidance of decisions and deployments on boosting the imports of high-quality goods released in this year's government work report and consistently implement various supporting measures. We will also advance quarantine access for high-quality agricultural and food products and expand imports of key components, major raw materials, energy, and resources. More efforts will be made, and more practical measures will be taken to serve high-quality development and high-level opening-up. Thank you.

Phoenix TV:

This year marks the 60th anniversary of the establishment of diplomatic relations between China and France. Over the past six decades, the two countries have enjoyed increasingly close cooperation in economy and trade. In 2023, the bilateral trade volume reached $78.9 billion, and China's imports of goods from France grew 5.5% year on year. Could you please provide an overview of the current situation regarding imports and exports between the two countries? Additionally, what kinds of expectations do you have for the future? Thank you.

Lyu Daliang:

I will first brief you on the trade situation between the two countries. In March 2019, President Xi Jinping paid a visit to France, which opened a new chapter for Sino-French relations. During the past five years, the two countries have deepened their economic and trade cooperation and achieved fruitful results. From 2019 to 2023, China's imports and exports with France grew by 5.9% annually. At present, France is China's third-largest trading partner within the EU, while China is France's largest trading partner in Asia. In the first quarter of this year, China's imports and exports with France reached 127.22 billion yuan.

In the agricultural products sector, France is China's largest source of imports in the EU. In 2023, China imported French agricultural products with a value of 46.95 billion yuan, up by 50.5% from 2019, and its import value approached 10 billion yuan in the first quarter of 2024. More and more agricultural products, including dairy products, pork and wine sourced from French farms nearly 10,000 kilometers away, are making their way onto Chinese dinner tables.

In the consumer goods sector, China's imports from France grew 12.3% annually during the past five years. Among them, imports of cosmetics, bags, jewelry, clothing, and clocks and watches have exceeded double-digit growth in terms of the average annual growth rate. At the same time, Chinese products have become increasingly popular in France. During the past five years, China's consumer goods exports to France grew by 3.9% annually. In the first quarter of this year, China's exports of household appliances, mobile phones, furniture and toys to France increased by 30.6%, 27%, 24.3% and 28%, respectively.

In the high-tech products sector, France is China's major source of imports for aircraft and aerospace components, which accounted for around 30% of China's total import volume of the same kind in the past five years. Currently, the two countries are expanding their cooperation on sci-tech innovation. During the past five years, China's imports of material technology products, biotechnology products, and integrated circuits from France grew annually by 38.8%, 13.9% and 14%, respectively, enjoying double-digit growth. In the first quarter of this year, imports of these products exceeded double-digit growth.

Regarding your second question, as China and France strengthen their comprehensive strategic partnership, they will expand exchanges and cooperation widely and deeply through close communication and coordination, pushing their bilateral economic and trade relations to a new level. Thank you.

Nanfang Daily, Nanfang+: 

Since 2014, cross-border e-commerce has been included in China's government work reports for 11 consecutive years, and it has also become a new driving force for the growth of foreign trade. May I ask, in the first quarter of this year what was the import and export situation of cross-border e-commerce like? What has customs done to promote the sound development of cross-border e-commerce? Thank you.

Lyu Daliang:

With the development of internet technology, cross-border e-commerce, leveraging advantages such as online transactions, contactless delivery and short transaction chains, has helped consumers and producers from various countries "purchase and sell globally," and has become a "new force" in global trade.

The rapid development of global cross-border e-commerce has not only facilitated global access of Chinese products but has also become an important channel for foreign consumer goods to enter the Chinese market. In the first quarter, according to preliminary calculations, China's cross-border e-commerce imports and exports totaled 577.6 billion yuan, an increase of 9.6% year on year. Among them, the exports totaled 448 billion yuan and imports totaled 129.6 billion yuan. What I would like to clarify is that according to China's cross-border e-commerce statistical survey system, cross-border e-commerce statistical surveys are conducted twice a year, including a full-year survey of the previous year and a survey of the first half of the current year, with monthly and quarterly data as preliminary estimates. Cross-border e-commerce imports and exports are already included in the total import and export volume for the same period.

In recent years, customs have continuously deepened comprehensive reforms of cross-border e-commerce in line with its characteristics and development trends, continuously improved regulatory and service efficiency, ensured the quality, safety and clearance convenience of imported and exported goods, actively promoted the collaborative governance between customs and cross-border e-commerce platforms and effectively advanced the sound and well-regulated development of cross-border e-commerce. Next, customs will work with relevant departments to focus on the difficulties and bottleneck issues in the supervision of cross-border e-commerce, continue to promote innovation in systems, management and services as well as promote the high-quality development of cross-border e-commerce, facilitating domestic and foreign consumers and producers to enjoy more and better products. Thank you.

The Paper.cn: 

The year 2024 marks the beginning of the second decade of the BRI cooperation. May I ask, how was the import and export performance between China and BRI partner countries in the first quarter of this year? What new measures has China's customs taken to advance the BRI cooperation? Thank you.

Wang Lingjun: 

Thank you for your questions. Since the proposal of the BRI, economic and trade exchanges between China and BRI partner countries have witnessed a vibrant first decade and are now actively embracing a new golden decade. In the first quarter of this year, trade between China and BRI partner countries continued to maintain good momentum of development. As I have already mentioned the relevant data in the initial briefing, I won't repeat it again now.

In terms of imports, the "Chinese market" continues to bring development opportunities to various countries. In the first quarter, China imported goods from BRI partner countries worth 2.14 trillion yuan, up by 3.6% year on year. Various advantageous commodities from BRI partner countries, such as crude oil from the Middle East, natural gas from Central Asia and metal ores from South America, were exported to China. Meanwhile, we have continued to facilitate the access of high-quality agricultural and food products with agricultural imports from BRI partner countries reaching 149.87 billion yuan in the first quarter. Imports such as sesame from Pakistan, black tea from Sri Lanka and cranberries from Peru all saw double-digit growth, allowing numerous high-quality agricultural products from various countries to enter Chinese households via the jointly developed prosperous Belt and Road route. While bulk commodities might be hard to reach for many, agricultural and food products from all corners of the world can easily be found in supermarkets.

Regarding exports, "Made in China" continues to provide stable supplies to various countries. In the first quarter, China exported goods worth 2.68 trillion yuan to BRI partner countries, up by 7% year on year. China has intensified industrial cooperation with BRI partner countries, achieving double-digit growth in the export of high-tech intermediate products such as electronic information, instruments and high-end equipment, and supporting the industrial development and technological progress of related countries. "Made in China" has effectively met the diverse consumer demands of BRI partner countries with exports of automobiles, household appliances, clothing and accessories increasing by 30.9%, 19.4% and 6% year on year, respectively. From daily consumer goods to large durable goods, Chinese products are widely welcomed by consumers. China and BRI partner countries continue to deepen cooperation in the infrastructure sector, enhancing the long-term development capabilities of BRI partner countries. In the first quarter, China exported 20.04-billion-yuan worth of turnover through overseas contracted projects to BRI partner countries, with exports to ASEAN, the Middle East and Central Asia increasing by 31.4%, 169.3%, and 3.6% year on year, respectively. Exports of photovoltaic products exceeded 30 billion yuan while more than 120,000 sets of renewable energy generators, such as solar and wind power, were exported, supporting the energy transformation and green low-carbon development of BRI partner countries.

In the first quarter of this year, the General Administration of Customs signed 11 cooperation agreements with BRI partner countries, including nine related to the access of agricultural and food products and two related to institutional cooperation. Next, in accordance with President Xi Jinping's proposal of "eight major steps" to support high-quality Belt and Road cooperation at the Third Belt and Road Forum for International Cooperation, customs will enhance communication and coordination with counterpart departments of BRI partner countries, deepen cooperation in port management, supply chain connectivity and agricultural and food product access and make contributions to the stable and far-reaching development of high-quality cooperation of Belt and Road. Thank you.

21st Century Business Herald:

How was the trade situation between China and other RCEP member countries in the first quarter? What are your expectations for China's future trade with these countries? What efforts has the GACC made in advancing the implementation of the RCEP? Thank you.

Wang Lingjun:

Thank you for your questions. The RCEP, which came into effect on Jan. 1, 2022, has been in force for nearly two years and four months. It has fostered close trade ties among member countries and serves as a vivid example of regional countries sharing development opportunities. I'd like to ask Mr. Lyu to elaborate on the situation.

Lyu Daliang:

I will outline China's import and export situation with other RCEP member countries in the first quarter of this year. According to customs data, total trade between China and the other 14 RCEP countries reached 3.08 trillion yuan, marking a 2.7% increase. This accounted for 30.3% of China's total trade in goods . The trade data reveals the following two main characteristics:

First, regional cooperation has become even closer. In the first quarter, China's exports to other RCEP member countries reached 1.6 trillion yuan, growing by 2%. Among them, the export of intermediate goods increased by 2.1%, accounting for 31.7% of China's total intermediate goods exports. Exports of electronic components and labor-intensive intermediate goods both maintained double-digit growth. During the same period, China's imports from other RCEP member countries amounted to 1.48 trillion yuan, marking a 3.4% increase. Bulk commodities, primarily consisting of metal ores and energy products, saw a 2.8% increase in import volume, constituting 42.3% of China's total bulk commodity imports. The import and export of intermediate products demonstrate the close economic ties and cooperative relationships between regional members.

Second, many import and export enterprises have enjoyed tangible benefits. In the first quarter, imports under the RCEP framework enjoyed preferential treatment worth 24.69 billion yuan, with a tax concession of 670 million yuan, marking increases of 35.3% and 38.7%, respectively. This benefited 4,320 enterprises. In terms of exports, 18,000 enterprises applied for RCEP certificates of origin, covering goods valued at 63.94 billion yuan, reflecting a 2.6% increase. Furthermore, 729 approved exporters issued RCEP statements of origin, involving goods valued at 2.41 billion yuan, marking a 12.6% increase. These measures have brought tangible benefits to relevant enterprises.

As Mr. Wang mentioned, the RCEP has been officially implemented for over two years now. During this period, the GACC has diligently implemented the arrangements of the CPC Central Committee and the State Council regarding the implementation of the RCEP. We have focused on building a globally-oriented network of high-standard free trade areas, implementing customs procedures and trade facilitation rules, strengthening international cooperation in animal and plant quarantine and food safety, continuously improving the quality of public services for the RCEP, and promoting the effective implementation of policies such as tariff concession under the RCEP framework.

Next, the GACC is committed to maintaining high-quality implementation of all RCEP-related initiatives. We will enhance international exchanges and cooperation with customs authorities of RCEP member countries, promote the establishment of an online platform providing services related to certificates of origin and preferential treatment for enterprises, conduct training in RCEP-related fields, and help local governments, industries and enterprises seize opportunities under the RCEP framework and fully benefit from policy dividends. Thank you.

Shou Xiaoli:

The last two questions please.

Guangming Daily:

We have noticed that the World Customs Organization's Global Authorized Economic Operators (AEO) Conference will be held this May in China for the first time. Could you please provide an overview of the event preparations? Thank you.

Wang Lingjun:

Thank you for your question. AEO stands for "authorized economic operator," which is an accreditation system advocated by the World Customs Organization . It grants preferential treatment and facilitation to companies with high levels of creditworthiness, compliance with laws and security standards. Enterprises that obtain AEO certification benefit from reduced inspections, priority processing, designated contact officer services, and other convenient services during customs clearance. AEO can be considered a "green pass" for global trade, enabling businesses to expedite customs clearance and outperform their competitors in terms of trade costs.

In recent years, the GACC has earnestly implemented the important instructions by General Secretary Xi Jinping, vigorously advancing the international mutual recognition process of AEO and intensifying efforts to foster AEO-certified enterprises. Currently, China has signed AEO mutual recognition agreements with 26 economies, including Singapore and the European Union, covering 52 countries and regions. This achievement maintains China's global leadership in both the number of signed mutual recognition agreements and the number of countries and regions which signed agreements with China. The number of AEO-certified enterprises in China has reached 5,860. In the first quarter of this year alone, the total import and export volume of AEO-certified enterprises exceeded 3 trillion yuan, playing a pivotal role in bolstering China's open economy.

Shenzhen will hold the 6th Global AEO Conference on May 8, which represents the highest-level conference in the global AEO field and the first major international conference hosted by China Customs since the 20th CPC National Congress. It is of great significance in showcasing the achievements of Chinese modernization and assisting in the construction of a major trading nation. Approximately 1,200 representatives from customs authorities worldwide, relevant international organizations, industry associations and AEO enterprises are expected to attend the event themed "Harnessing the Power of AEO Programs for Inclusive and Sustainable Global Trade." The GACC will take this conference as an opportunity to promote the country's advanced experiences and practices in the AEO field, participate in the formulation of international AEO rules, further promote AEO institutional opening-up, continuously expand the "circle of friends" for international AEO mutual recognition, and strive to contribute Chinese wisdom and solutions to the reform of the global governance system. Friends from the media here today are welcome to cover the conference through interviews, publicity and reports. Thank you.

Zhinews of Shenzhen Satellite TV:

The Guangdong-Macao In-Depth Cooperation Zone in Hengqin officially started closed-loop operation on March 1. What achievements have the customs authorities made in safeguarding the closed-loop operation of the zone? And how will the customs authorities continue to support the construction of the zone going forward? Thank you.

Lyu Daliang:

As this year marks the 25th anniversary of Macao's return to the motherland, there is heightened interest in matters concerning Macao. As a reporter from Shenzhen, you might have a keen interest in Hong Kong and Macao affairs. I would like to share some updates on the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.

Construction of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin is a significant decision personally planned, deployed and promoted by General Secretary Xi Jinping. The customs authorities have implemented General Secretary Xi Jinping's important instructions, focusing on the original intention of developing and constructing the zone, based on the integrated development of Hengqin and Macao and vigorously promoting the high-quality development of the zone. Since this January, we have successively introduced the Supervision Measures for the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and eight supporting customs business announcements. We strive to construct an intelligent customs supervision system that aligns with the high-standard development of the zone, ensuring effective management, openness, efficiency and good user experience.

Hengqin is known for its dual-tier management system, comprising the "first line" and the "second line." The "first line," oriented toward Macao, has seen customs actively seek alignment with Macao's rules and mechanisms, significantly simplifying customs supervision procedures. For example, to expedite vehicle traffic, Guangdong and Macao have implemented "one-time collection, separate processing, and joint inspection and release" for cross-border vehicles, reducing overall clearance time by 50%. For smoother passenger travel, we have implemented a "cooperative inspection, one-time release" mode for health quarantine, set up a "new home" express lane for inbound traffic, and introduced a "one-time clearance" inspection mode for outbound, enhancing the clearance experience of passengers. To accelerate goods clearance, we have adopted a series of measures such as "guaranteed qualification and compliance verification" for Macao-origin goods and "triple linkage and triple consistency" supervision for fresh aquatic products supplied to Macao, actively promoting the connection of inspection and quarantine rules between Hengqin and Macao.

Statistics show that in the first month of closed-loop operation, customs authorities oversaw roughly 1.759 million inbound and outbound crossings on the "first line" and handled 170,000 instances of vehicles entering and exiting. Among them, the "new home" express lane saw over 140,000 passages, while the "one-time clearance" process was used in excess of 740,000 instances.

Regarding the "second line," which deals with the mainland areas outside of Hengqin, the customs authorities have maintained a balance between coordinated development and security, deepening collaborative governance with local authorities. We have pioneered a five-sphere regulatory model integrating classification, risk, intelligence, credit and coordination. This approach has enabled precise and intensive supervision, minimizing the impact on the circulation of goods and items, and striving for greater convenience in the circulation of resources. In the first month of closed-loop operation, vehicles were released from the outbound area over 1.46 million times, and people passed through approximately 4.47 million times, with all lanes running in a smooth and orderly manner, and customs supervision mechanisms operating efficiently and smoothly.

Next, customs authorities will continue to implement various policies and measures, fully support and serve the high-quality development of the cooperation zone, and promote the implementation of the first-phase construction goals and tasks outlined in the general plan for building a Guangdong-Macao In-Depth Cooperation Zone in Hengqin. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang and Mr. Lyu, and thank you to all friends from the media for you participation. That hereby concludes today's press conference. Goodbye.

Translated and edited by Zhu Bochen, Wang Qian, Cui Can, Ma Yujia, Liu Caiyi, Zhang Junmian, Yan Bin, Huang Shan, Lin Liyao, Zhou Jing, Mi Xingang, Li Xiao, Qin Qi, Wang Yanfang, Wang Ziteng, Liu Qiang, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers: 

Mr. Liu Xiaoming, deputy secretary of the Communist Party of China (CPC) Hainan Provincial Committee and governor of Hainan province

Ms. Xie Jing, vice governor of Hainan province and director general of the Hainan Provincial Department of Science and Technology

Mr. Guan Jirong, deputy secretary-general of the CPC Hainan Provincial Committee and executive vice director of the Office of the Hainan Free Trade Port Working Committee

Mr. Chen Jiyang, deputy secretary-general of the People's Government of Hainan Province and director general of the Hainan Provincial Department of Business Environment Development

Chairperson:

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

Date:

April 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 holding the ninth briefing in the series "Promoting High-Quality Development." We have invited Mr. Liu Xiaoming, deputy secretary of the Communist Party of China (CPC) Hainan Provincial Committee and governor of Hainan province, to brief you on deepening reform and opening-up across the board, and accelerating the development of a free trade port with Chinese characteristics and global influence. He will also take your questions. Also joining us today are Ms. Xie Jing, vice governor of Hainan province and director general of the Hainan Provincial Department of Science and Technology; Mr. Guan Jirong, deputy secretary-general of the CPC Hainan Provincial Committee and executive vice director of the Office of the Hainan Free Trade Port Working Committee; and Mr. Chen Jiyang, deputy secretary-general of the People's Government of Hainan Province and director general of the Hainan Provincial Department of Business Environment Development.

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

Liu Xiaoming:

Good morning. It’s a great pleasure to meet you here. First of all, on behalf of the CPC Hainan Provincial Committee and the Hainan provincial government, I'd like to express my heartfelt gratitude for your long-term interest in and support for Hainan. 

April 13 marks the sixth anniversary of General Secretary Xi Jinping's announcement of establishing the Hainan Free Trade Port (FTP). Over the past six years, we have consistently adhered to the principle of serving the national strategies with high-level opening-up and driving Hainan's high-quality development. An initial FTP policy system has been established, with the main framework focusing on trade, investment, cross-border capital flows, personnel mobility, free and convenient transportation, and the safe, orderly flow of data. The construction of the Hainan FTP has taken shape and gained momentum, serving as both a booster and an accelerator for Hainan's high-quality development. General Secretary Xi Jinping has successively affirmed Hainan's progress with expressions like "smooth start," "vigorous progress," "significant advancements," and "vibrant thriving." During his inspection tour to Hainan in 2022, the general secretary called for accelerating the development of Hainan into a free trade port with Chinese characteristics and global influence, turning Hainan into a paradigm of reform and opening-up in the new era, and shaping it into a landmark showcasing Chinese splendor. 

Last year, several economic and social indicators in Hainan displayed growth rates that ranked among the top in the country. Specifically, Hainan's GDP increased by 9.2%, the value-added of industries above designated size grew by 18.5%, and the per capita disposable income of urban and rural residents went up by 6.3% and 8.3%, respectively. Trade in goods and services, reflecting the FTP's economic performance, increased by 15.3% and 29.6%, respectively. Moreover, Hainan's opening-up involved two-way engagement, with imports accounting for around two-thirds and outbound direct investment surging by 104.9%, allowing the world to share in the development opportunities presented by Hainan and China. 

Currently, we're coordinating the preparations for achieving independent customs operations with economic and social development, and conducting various stress tests for these operations. We are striving to play a more significant leading role in promoting high-level opening-up, accelerating high-quality development, and enhancing the tangible benefits gained from a high-quality life. By doing so, we aim to better serve and integrate into the new development pattern and celebrate the 75th anniversary of the founding of the People's Republic of China with outstanding accomplishments.

First, we will drive high-level opening-up through the construction of the Hainan FTP. We will fully leverage the role of the FTP as a comprehensive pilot platform for reform and opening-up, focus on innovative reforms and pioneering opening-up strategies, and introduce a number of integrated institutional innovations with broader significance and greater influence. We will take the lead in aligning with high-standard international economic and trade rules, conducting thorough stress tests, and promoting dynamic upgrading, optimization, and effectiveness of Hainan FTP policies. 

Second, we will empower the establishment of a modern industrial system with new quality productive forces. We have made the tough decision to break away from the economy's dependence on real estate and accelerated the establishment of Hainan's characteristic modern industrial system, described as"4 plus 3 plus 3." The "4" refers to vigorously developing the tourism industry, modern services, high-tech industry, and characteristic high-efficiency tropical agriculture. The contribution of these four leading industries to the province's GDP has increased by over 10 percentage points since 2018. The first "3" involves forward-looking arrangements for the three future industries of Nanfan, or seed breeding in South China , deep-sea technology, and commercial aerospace, creating an important practice base for developing new quality productive forces. The second "3" refers to effectively reclaiming overseas consumption in three areas: high-end shopping, healthcare and education.

Third, we will make coordinated efforts to advance the integrated development of education, science and technology, and talent. We will solidify the development of basic education and enhance its openness, promote the high-quality and balanced development of basic education, and strive for leapfrog development in higher education. By doing so, we aim to expedite the construction of an international education innovation island and explore a path for high-level opening-up in China's education sector. We will create dual hubs for sci-tech innovation and institutional reform and focus on achieving technological breakthroughs in areas such as biological breeding, ocean observation, and the application of satellite big data. In addition, we will expand international sci-tech exchange and cooperation and accelerate the reform of the property rights system reform for sci-tech advancements. By 2025, we aim to achieve the goal of attracting a million talents to Hainan.

Fourth, we are promoting coordinated regional development by treating the entire province as a single entity and promoting the integrated development of the island. We upgrade three economic circles, namely the Haikou Economic Circle, the Sanya Economic Circle, and the Danzhou-Yangpu Economic Circle. We also connect coastal cities with the Hainan Island Ring Road Tourism Highway and form a synergy with central ecological conservation areas among mountains to enhance overall development momentum.

Fifth, we are accelerating green and low-carbon transformation by striving to be a model in achieving the dual carbon goals. We regard the protection of the ecological environment as the top priority for Hainan. Therefore, we are continuously implementing landmark projects such as the Tropical Rainforest National Park, promoting clean energy islands and clean energy vehicles, banning plastics, advancing prefabricated construction, enhancing integrated water management, and developing the Boao near-zero carbon demonstration zone . Hainan aims to take the lead nationwide and make more contributions by establishing ocean carbon sinks and promoting green and low-carbon initiatives.

Sixth, we are expediting efforts to address inadequacies in public well-being from the perspective of development. This involves increasing investment in people's livelihoods, continuously introducing high-quality education and medical resources, ensuring that children have access to quality education nearby, and ensuring that residents can receive medical treatment locally for both minor and major ailments. We aim to convert the surge in business entities and investment project development brought about by the policies of the FTP into more high-quality employment opportunities, thus enhancing residents' sense of gain as we develop the FTP.

That's all for my introduction. Next, my colleagues and I will be happy to answer your questions. Thank you, everyone!

Xing Huina:

Now, the floor is open for questions. Please state the news organization you represent before asking your questions.  

People's Daily: 

During the past six years, Hainan has been working on building the China (Hainan) Pilot Free Trade Zone and has carried out exploratory work on setting up a free trade port with Chinese characteristics. Could you please introduce the current situation of the Hainan FTP construction? Thank you.

Liu Xiaoming: 

Thank you for your question; I will answer it. These years, Hainan province has resolutely implemented the decisions and arrangements made by the CPC Central Committee and the State Council. Following the requirements of the master plan of the Hainan FTP, we have made efforts quickly and steadily to shape up the FTP, mainly focusing on the following four aspects. 

First, the accelerated release of policy benefits has made Hainan a hotbed for investment. Under the working mechanism of "central coordination, departmental support, and provincial implementation," the policy framework of the Hainan FTP has taken shape, bringing tangible benefits to businesses and the public. For instance, the three zero-tariff lists for imported raw and auxiliary materials, means of transportation and yachts, and self-use production equipment have resulted in a cumulative import value of 20.2 billion yuan and tax reductions of 3.81 billion yuan. The zero-tariff policy for domestically sold products with no less than 30% value-added from processing has been expanded to key industrial parks across the province, resulting in a cumulative domestic sales value of 4.71 billion yuan and tax reductions of 420 million yuan. In 2023, the number of offshore duty-free shopping visitors and the amount spent increased by 59.9% and 25.4%, respectively, year on year. Currently, foreign investment in Hainan continues to increase, with the number of newly established foreign-funded enterprises growing by 65% annually since 2018, totaling 6,543 enterprises.

Second, Hainan has been steadily expanding institutional opening-up by taking the lead in experimenting with high-standard economic and trade rules. Leveraging the advantages of various policies from the Regional Comprehensive Economic Partnership (RCEP) and the FTP, we have pioneered the implementation of international high-standard economic and trade rules. Hainan has introduced a series of new measures in areas such as trade in services, digital trade, intellectual property protection, and cross-border data flows. To address policy implementation bottlenecks, pain points of lack of application scenarios, and difficulties in achieving noticeable effects, Hainan has promoted cross-department, cross-domain, and cross-regional institutional integration innovation through in-depth planning. It has released a total of 16 batches of 140 institutional integration innovation cases, among which 11 have been replicated and promoted nationwide by the State Council, and six have been commended nationally.

Third, Hainan has comprehensively prepared for the initiation of independent customs operations and steadily advanced toward higher standard opening-up. In 2023, we launched the preparations for independent customs operations, vigorously implementing three lists concerning tasks, projects, and stress tests with strenuous efforts. This year marks a pivotal year for advancing customs closure operations. We will complete the construction of hardware and software for independent customs operations and conduct comprehensive, whole-process stress tests on policy systems, facilities, system platforms, and management capabilities. Simultaneously, we are striving to create a first-class business environment characterized by the rule of law, internationalization, and facilitation, to ensure smooth initiation of independent customs operations as scheduled.

Fourth, Hainan has made solid and effective progress in risk prevention and control, with significant improvements in governance systems and capabilities. Adhering to the principle that effective management allows for greater opening-up, we have established contingency plans, improved mechanisms, and made regular adjustments to address potential risks associated with the implementation of various policies in the FTP. Through initiatives such as Smart Hainan and Hainan Credit, we will be able to identify, prevent, and manage risks, as well as firmly guard against systemic risks. Thank you.

Red Star News:

The growth rate of Hainan's expenditure in research and experimental development has ranked among the top nationwide in recent years. What are the features and highlights of Hainan in terms of sci-tech innovation? Thank you.

Xie Jing:

In recent years, Hainan has fully leveraged its comparative advantages in temperature, depth, latitude and greenness, referred to as "three degrees and one color," to accelerate the establishment of innovation hubs in key industries such as seed development, deep-sea exploration, and aerospace. These efforts have also contributed to promoting green transformation. Significant achievements have been made in sci-tech innovation. Notable examples include Sanya's Nanfan Silicon Valley and the Deep Sea Science and Technology City, which have emerged as national benchmarks and clusters for sci-tech innovation in the seed industry and deep-sea research, respectively. With the completion of the country's first commercial aerospace launch site, aerospace research forces are also accelerating their convergence in Hainan.

In the past three years, the sci-tech development in Hainan can be summarized by "four new achievements": First, there have been a leap in the number of national-level sci-tech innovation platforms, marked by the establishment of the Yazhou Bay National Laboratory, which resulted in the doubling of the number of national-level sci-tech innovation platforms in Hainan. Second, research and development (R&D) investment has reached new heights, with the growth rate for R&D spending by the entire society ranking at the forefront of the country for three consecutive years and the number of patent applications granted more than doubling. Third, there have been new achievements in introducing and cultivating sci-tech professionals, with the number of national-level professionals in key areas growing geometrically and the full-time equivalent of R&D personnel doubling. Fourth, there has been new progress in corporate innovation, with a 75% increase in the number of high-tech enterprises in the province and nearly a threefold increase in the turnover of technology contracts.

Going forward, Hainan will focus on the following aspects to accelerate the development of sci-tech innovation and the sci-tech system reform:

First, we will further leverage comparative advantages to enhance sci-tech innovation capabilities in key areas such as land, sea and air, thereby significantly contributing to national strategic development in science and technology.

Second, we will further concentrate on developing useful science and technology, centering on emerging industries such as the digital economy, petrochemical new materials, and biomedicine, as well as the three future industries of Nanfan, or seed breeding in south China, deep-sea exploration, and aerospace. We plan to launch a series of scenario applications, enhance the commercialization of scientific and technological achievements, and promote the deep integration of the innovation and industrial chains.

Third, we will further emphasize institutional integration and innovation, launch a three-year intensive campaign for sci-tech system reform, reinforce the principal role of enterprises in innovation, and strive to achieve landmark results.

Fourth, we will fully leverage the open advantages of the FTP to enhance international sci-tech cooperation level and create a competitive international open innovation environment. Thank you!

Cnr.cn:

Hainan has proposed building itself into an important player for developing new quality productive forces. Can you introduce the advantages of Hainan? Going forward, what are the key areas for Hainan to focus on? Thank you.

Liu Xiaoming:

Thank you for your questions. I will address them. We are relying on Hainan's comparative advantages in two key areas to build the province into an important player for developing new quality productive forces. The first area is its natural endowment in terms of temperature, depth, latitude and greenness, also known as the "three degrees and one color." The second area is the benefits derived from the policies for the FTP and opening-up. Specifically, we will make great efforts in the following five aspects to build Hainan into an important player for developing new quality productive forces:

First, we will strive to develop the seed industry. Hainan is a tropical province, and more than 70% of China's main crop varieties are cultivated through seed breeding in south China, forming what is known as the Nanfan seed industry. Currently, we have gathered over 2,800 innovative seed enterprises, with the output value of the Nanfan seed industry exceeding 12 billion yuan. Next, we will exert all efforts to make breakthroughs in developing seeds, often referred to as "agricultural chips." We will also accelerate the construction of the Nanfan Agricultural Silicon Valley , which serves the whole country. For example, a variety of domestically produced durians, branded Shushangshu, was first introduced to the market in Sanya and was well received last year. We will strengthen research, development, innovation, and utilization to promote the localization of more imported fruits and vegetables.

Second, we will strengthen the marine industry. Hainan is the province with the largest marine area in China, thereby boasting a wide range of application scenarios. Currently, Hainan has over 1,000 high-tech marine enterprises, and a batch of major deep-sea equipment has been put into operation. Going forward, we will actively advance emerging marine industries such as deep-sea technology, marine intelligent equipment manufacturing, and deep-sea aquaculture. This year, the goal is to exceed 310 billion yuan in gross marine product. Moreover, we have a greater goal of building a stronger Hainan with a thriving marine industry over the next decade.

Third, we will focus on the aerospace industry. Hainan is ideally suited for the development of the aerospace industry due to its geographical latitude. The No. 1 launch pad of China's first commercial spacecraft launch site was completed at the end of last year, and the construction of the No. 2 launch pad was also finished at the end of March this year, expected to be capable of supporting regular launches starting in June. Currently, many leading domestic commercial aerospace enterprises are competing for launch opportunities. With a focus on the rocket chain, we will also expand and promote the establishment of "space plus" industrial projects, such as the satellite chain and the data chain, striving to develop the Wenchang International Aerospace City into a hub that integrates space launches, R&D, manufacturing, tourism, and international exchanges.

Fourth, we will pursue green development. We are deepening our efforts to build a "clean energy island," significantly reducing carbon footprints. The proportion of installed clean energy equipment has reached 78.5%, ranking among the highest in China. During the Boao Forum for Asia Annual Conference 2024, the near-zero carbon demonstration zone at Dongyu Island received wide attention. We will explore more practical approaches for transforming carbon into a valuable resource, building a 2.0 version of the clean energy island, developing green industries such as offshore wind power and photovoltaic projects, promoting the production, storage, transportation and utilization of green hydrogen, and advancing the green transformation and upgrading of industries such as petrochemical new materials.

Fifth, our efforts will focus on digitization. We will leverage the Hainan FTP's policies on the secure and orderly flow of data, and improve digital infrastructure such as 5G, green computing power and international communication submarine cables. We will also establish a comprehensive bureau for stepping up international communications services as soon as possible. We will enrich application scenarios for different sectors including helping Chinese games "go global", and develop local industries with a competitive edge, such as digital health and key components, to promote the digital economy of the Hainan FTP.

As a Chinese saying goes, "Seeing is believing." We welcome friends from the media to visit Hainan and experience firsthand the development and panoramic display of the new quality productive forces there. Thank you.

TASS news agency: 

Everyone is very interested in the independent customs operations. How has the preparation of related projects progressed? Could you also outline the vision for the development of the Hainan FTP after the implementation of island-wide independent customs operations? Thank you.

Guan Jirong:

The independent customs operations is of milestone significance for the development of the Hainan FTP and for the island province's high-quality development. At present, Hainan regards it as a top priority and is redoubling its efforts to make breakthroughs by focusing on the following three lists. The first one is the task list, which includes more than 40 key tasks, such as port planning and construction, as well as policy and institutional framework design, all progressing in an orderly manner. The second one is the project list, where the main work of 31 projects involving the independent customs operations has been basically completed. The third one is the stress test list, with full coverage and large-scale testing currently in full swing.

With solid progress made in the independent customs operations, several key and core policies have been put in place, bringing tangible benefits to businesses. In the future, we will ensure our policies bring even more benefits to enterprises. Here, I would like to share with you the vision of the Hainan FTP after it launches independent customs operations. In terms of trade liberalization and facilitation, more and more imported goods will enjoy zero-tariff treatment in Hainan, and consumers will reap greater benefits. We will pursue opening-up against higher standards in the services trade, with fewer restrictions on overseas individuals participating in domestic vocational qualification examinations. Consequently, an increasing number of overseas talent and professionals will come to work in Hainan. Regarding investment liberalization and facilitation, market access for foreign investment in medical care, education, telecommunications, and other fields will be further relaxed. People can enjoy world-class education in Hainan and access international drugs and medical devices yet to be marketed in China, as well as high-level foreign medical technology services. In terms of cross-border capital flow, Hainan will promote the free and convenient flow of capital across borders in an orderly manner, and the ability of the financial sector to serve the real economy will continue to strengthen. In the future, it will be more convenient to carry out cross-border wealth management in Hainan, which is conducive to attracting high-net-worth individuals (HNWI) to settle in Hainan and realize the global allocation of their assets. Concerning the facilitation of the entry and exit of personnel, people from 59 countries can enjoy visa-free access to Hainan. The number of foreign-funded enterprises is increasing, and more foreigners will become employees of local companies in Hainan, who can act as legal persons in public institutions, state-owned enterprises, and statutory organizations in Hainan. In terms of transportation facilitation, Hainan ranks second among China's provincial-level regions for the registered tonnage of international sailing ships. In the future, more international flights will stop over in Hainan to load passengers and cargo. The number of routes from Hainan to overseas regions will continue to increase, making it more convenient to reach the world from Hainan.

The blueprint has been drawn, and now is the time to forge ahead. We have the confidence and determination to fully implement the decisions and requirements of the central authorities and launch the independent customs operations as scheduled with the support of relevant ministerial-level departments and the joint efforts of the entire province. Thank you.

Hong Kong Bauhinia Magazine:

The business environment is a crucial aspect of the development of the FTP. What measures will Hainan take to further improve its business environment and attract more business entities to settle there? Thank you.

Chen Jiyang:

We often say, "Whether a business environment is good or not, business entities have the final say." The CPC Hainan Provincial Committee and Hainan provincial government regard the business environment as one of the eight important pillars supporting the development of the FTP. Hainan is taking all kinds of pragmatic and effective measures to optimize its business environment in order to enhance enterprises' sense of gain and satisfaction.

We have proposed to boost two brand initiatives in Hainan: One is called "Hainan FTP Welcomes Your Complaints" and the other is "Hainan FTP Serves You." Supporting the first brand initiative is a business environment complaint platform, which has been in operation for more than three years. We have received over 7,000 complaints from enterprises, with more than 95% of them resolved, including some long-standing problems that existed before the establishment of Hainan province.

For the other brand initiative, "Hainan FTP Serves You," we continually launch a variety of service measures for enterprises. For example, in the second half of last year, Hainan province carried out large-scale research and service activities targeting enterprises above designated size as well as specialized and sophisticated enterprises that produce new and unique products. Led by principal officials of the CPC Hainan Provincial Committee and Hainan provincial government, we visited the enterprises, provided corresponding policies and services, and settled various problems. The enterprises rated our services and expressed their satisfaction with a rating of over 96%.

This year, the CPC Hainan Provincial Committee and the Hainan provincial government have launched a comprehensive campaign to improve the overall business environment. The primary focus is on being responsive to all requests and minimizing unnecessary disturbances. In terms of responsiveness, we have optimized several mechanisms. For instance, we have integrated services for handling business environment issues, the 12345 hotline, and various other channels for gathering feedback. This integration has enabled us to establish a comprehensive mechanism for collecting and addressing all enterprise issues. Businesses can now easily voice their concerns anywhere and at any time. With all issues incorporated into a single system, the resolution process is transparent to both businesses and government departments concerned, making it easier for us to track and supervise its progress. To achieve the goal of minimizing unnecessary disturbances, we have also recently launched an integrated monitoring platform for business-related activities. Government departments must now register to get data and material when they pay visits to enterprises, extend invitations to business leaders for events, or carry out enforcement inspections. While this may cause some inconvenience for the government, it offers greater convenience and peace of mind to businesses, allowing them to focus more effectively on their production and operations. Thank you.

Liu Xiaoming:

Let me add further details to Mr. Chen's response. Hainan possesses two main features. The first emphasizes the rule of law in the development of the FTP. Therefore, in the process of building the business environment, we are dedicated to creating a setting that is based on the rule of law and is both international and convenient. In 2021, the Standing Committee of the National People's Congress enacted the "Law of the People's Republic of China on the Hainan Free Trade Port ," which formally anchors relevant policies in legal documentation, providing business entities with more stable expectations. The second feature is that Hainan has established a business environment management system. At the end of 2022, Hainan set up the country's first provincial business environment construction department, and in 2023, business environment bureaus were successively established at the municipal and county levels. This framework aims to coordinate efforts to improve our business environment. Thank you.

Cover News:

Hainan has abundant tourism resources that are attractive to both domestic and international tourists. How will Hainan further enhance the quality of its tourism services and improve visitor experiences? Thank you.

Xie Jing:

The tourism industry is one of Hainan's four pillar industries. Last year, Hainan saw a year-on-year increase of 49.9% in domestic and international tourist arrivals and a surge of 71.9% in its total tourism revenue, both reaching record highs. Hainan emerged as one of the provinces with the fastest recovery of the tourism market following the COVID-19 pandemic. During this year's Spring Festival, tourist arrivals and total tourism revenue increased by 48.8% and 62.7%, respectively, both setting historical records. The tourism sector has maintained good momentum, turning the traditional "Golden Week" into a prolonged "golden season."

The soaring popularity of tourism in Hainan is a testament to the deep affection that numerous tourists hold for the region. This is something we must cherish and protect with more efforts. We will implement stronger measures to showcase Hainan tourism as a landmark feature of the FTP. Our efforts will focus on the following three aspects:

First, we will concentrate on developing an international tourism consumption center by leveraging the supply side. This year, we will launch an intensive campaign to improve international tourism consumption. We will plan a series of iconic projects to create more tourist attractions and enhance tourism consumption scenarios. Additionally, we will upgrade our tourism infrastructure, continuously expand the capacity of airports and seaports, and provide tourists with a wider range of choices and improved experiences.

Second, we will strengthen industry standards and market guidance. We will fully leverage the role of industry associations and bolster industry self-discipline. We will introduce preferential measures such as joint marketing of air tickets and hotel bookings to guide businesses in setting reasonable prices. As we all know, Hainan is known for its warm sunshine during the winter; but actually, it also features refreshing sea breezes in summer. With its tropical rainforests and an island tourist highway, Hainan offers beautiful scenery and is an ideal travel destination year-round. By promoting off-peak tourism, we aim to provide tourists with more cost-effective travel options.

Third, we will vigorously crack down on irregularities in the tourism market and focus on improving service quality. We maintain a strict zero-tolerance attitude toward deceptive practices that target tourists. We will promptly investigate and penalize such misconduct, enforcing stringent regulations and imposing heavy penalties. Throughout the year, we will continue to take strong measures to clean up and improve the tourism market, ensuring that no one tarnishes the reputation of Hainan's tourism sector. Additionally, we will enhance the training and development of tourism professionals. We will launch the "Year of Enhancing Quality Tourism Services" campaign in 2024.

Currently, under the theme "Welcome to Cool Hainan for a Break from the Summer Heat," we are launching a series of signature activities such as "100 performances and 1,000 sporting events." We are developing unique tourism products, including water sports, rainforest hot springs, intangible cultural heritage events of the Li and Miao ethnic groups, and educational tours. The China International Consumer Products Expo 2024 will open the day after tomorrow , and we extend a special welcome to all present here today. We also expect more friends to come to Hainan for a deep and immersive experience. Thank you.

CMG:

Hainan has set its regional GDP growth target at around 8% for this year, which is relatively high compared to the national average. What measures will Hainan implement to achieve this ambitious goal? Thank you.

Liu Xiaoming:

Thank you for your question. I will answer this question. Hainan province has set a GDP growth target of about 8% this year. This is a proactive development goal we set based on in-depth research, taking into account what is needed and what is possible, as well as the present and the future. At present, we are pooling resources to carry out critical tasks on the following seven areas, including preparations for independent customs operations , enhancing investment expansion and efficiency, upgrading international tourism and consumption, reinforcing and upgrading weak links in the industrial chains , enhancing the overall business environment, ensuring financial stability while fostering expansion and quality improvement, and achieving a steady increase with improved quality in foreign trade and investment. We will vigorously improve government efficiency to ensure that predetermined goals can be achieved.

Based on the economic data in the first quarter, Hainan’s economy is functioning soundly, continuing its upward trend. We will focus on both the real economy and the facilitation of capital and personnel flow, continuously enhancing economic vitality.

In terms of the real economy, we will strengthen the stability of our industrial pillars. This year, we will continue to reinforce and upgrade weak links in industrial chains, accelerate development alignment with the Guangdong-Hong Kong-Macao Greater Bay Area, promote interplay and industrial cooperation with the national strategy of the development of the Yangtze River Delta and coordinated development of the Beijing-Tianjin-Hebei Region, and promote the implementation of a new round of key industrial projects. On Feb. 27, the world's largest wind turbine blade officially rolled off the production line in Hainan. The swept area of this blade is equivalent to 9.4 standard football fields, demonstrating that Hainan now has the manufacturing capacity for ultra-large wind turbine components. This is also a microcosm of Hainan's efforts to promote the development of advanced manufacturing.

On the other hand, we aim to facilitate the capital and personnel flow at the FTP. Currently, we mainly focus on the following two aspects. The first is foreign trade and investment. This year, we will fully implement a new negative list for foreign investment at the Hainan FTP, establish and operate a multi-functional free trade account, upgrade the single window for international trade, and vigorously develop new business models such as cross-border e-commerce, overseas warehousing, offshore trade, and digital trade, and attract more international inflows of goods and capital with freer and more convenient trade and investment . The second is tourism and consumption. In the first quarter, the number of tourists received by Hainan and its total tourism revenue are expected to increase by 17.6% and 32.3%, respectively, with inbound tourism quadrupling compared to the same period of last year. Next, we will continue to work on winning back customers in three major areas, create special consumption scenarios such as "tourism + performing arts" and "tourism + sports," host the fourth China International Consumer Products Expo, and plan a series of major cultural tourism projects based on Hainan’s round-the-island tourist highway and the Hainan Tropical Rainforest National Park. For inbound tourists, we will make full use of the visa-free policy covering 59 countries, and introduce more entry facilitation measures. For example, we are about to launch a "Hainan wallet," which will enable inbound tourists to convert foreign currencies into electronic RMB on their mobile phones upon arrival in Hainan. They can use the electronic RMB anywhere they can use China's mobile payment system such as Alipay or WeChat.

I would like to add one more thing here. Hainan’s tourism is improving continuously, but there are still some bottlenecks. For example, during peak tourist seasons, vehicles crossing the Qiongzhou Strait experience congestion, economy air tickets are difficult to obtain, and there are still occasional service disputes. We are doing our best to address these issues, not only during the peak season of the Spring Festival holiday but also during the off-season. Therefore, we are confident and determined to further enhance Hainan’s reputation as a hub of tourism and consumption, ensuring that domestic and foreign guests can feel at home and travel in Hainan with peace of mind. Thank you.

China Daily:

Boao Lecheng International Medical Tourism Pilot Zone has been granted preferential policies for licensed drugs and medical devices, and has introduced more than 390 types of drugs and devices from overseas, providing more treatment options for domestic patients in urgent need of new medicines. What is Boao Lecheng's current operating situation? What are its development plans and prospects? Thank you.

Xie Jing:

As the only "special medical zone" in China, Boao Lecheng International Medical Tourism Pilot Zone has consistently adhered to the strategic positioning assigned by the nation and has essentially achieved a supply of innovative medicines and equipment that are in sync with the rest of the world. It has become a city of hope for patients with rare, difficult and complicated diseases to find new medicines, devices and treatments. Over the past five years, the number of medical tourists in the zone has increased by an average of 56% annually, while operating income has increased by an average of 65% per year. Additionally, the number of users of licensed drugs and medical devices has risen by an average of over 200% annually.

Recently, many people may have noticed that a drug for treating ALS, approved for sale in the United States in April last year, was introduced to Ruijin Hainan Hospital in Boao Lecheng just six months later. At the beginning of this year, domestic patients with ALS began using this innovative drug in Lecheng. Lecheng has pioneered the use of 391 such imported medicines and devices that are urgently needed for clinical use in China, benefiting more than 60,000 patients. At present, 28 medical institutions in Lecheng, including Ruijin Hainan Hospital, which has been approved to build a regional medical center, are open and operational. By the end of 2024, 10 more hospitals will open one after another, forming a "domestic + international" and "comprehensive + specialty" medical pattern. Lecheng has good medicines, equipment and hospitals. More and more domestic patients can access the most cutting-edge drugs and medical devices by coming to Lecheng, without having to go abroad or travel across oceans.

Lecheng is also leading the country in launching several tasks for institutional integration and innovation , such as real-world data research and the "medical + pharmaceutical" two-in-one supervision system. Currently, Lecheng has established close cooperation with over 170 pharmaceutical equipment companies from 20 countries. By using real-world data-assisted clinical evaluation in Lecheng, 13 pharmaceuticals and medical devices have been approved, significantly shortening the approval process. As a result, Lecheng has become the primary channel for the rapid entry of the world's latest pharmaceuticals and medical devices into China.

Next, we will focus on the following three aspects:

First, we will provide the people with better medical services and more innovative drugs and medical devices . This involves attracting more internationally renowned medical institutions and physicians, increasing the introduction of innovative drugs and medical devices from around the world, and contributing more "Lecheng strength" to the vision of building a "Healthy China."

Second, we will further deepen institutional integration and innovation. We will advance real-world data research from the "pilot" stage to the "upgraded" stage, offering Hainan's practical experience in exploring the deepening reform of drug and medical device evaluation and approval systems in China.

Third, we will continue to develop Lecheng into an international medical tourism destination . We will fully leverage Hainan's advantages in tourism resources and visa-free entry policy for 59 countries to expand into the international market and enhance Lecheng's global appeal. Thank you!

China News Service:

What specific measures has the Hainan FTP taken in terms of institutional innovation? How will it create more iconic achievements that distinguish it as an FTP in the future? Thank you.

Guan Jirong:

After several years of unremitting efforts, Hainan has achieved remarkable results in institutional integration and innovation. It has launched 16 batches of 140 innovation cases and gradually established a more mature working mechanism.

First, we have maintained coordination between the provincial government and central ministries. We have paid more attention to top-level design, strived for in-depth participation and strong support from relevant ministries, and jointly promoted 10 key innovation tasks. For example, the "five-in-one" intellectual property rights and the application of real-world data in medical insurance are at the forefront of the country. Second, we have benchmarked against high-standard economic and trade rules. We have implemented RCEP and further promoted 20 action measures. We have aligned with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and conducted pilot projects in areas such as certification, accreditation and market entity registration. We have also coordinated with the Digital Economy Partnership Agreement (DEPA) and started the formulation of a digital trade development plan. Currently, remarkable results have been achieved. Total trade in goods between Hainan province and RCEP member states achieved double-digit growth in 2023, and the total service trade volume doubled during the same year. Third, we have focused on key areas. We have planned and promoted a series of institutional integration and innovation initiatives centered around the policies and rules of the "five liberalizations and facilitation s, and the secure and orderly flow of data (the liberalization and facilitation of the flow of trade, investment, cross-border capital, personnel and transportation)." For example, we have implemented the full-process supervision model for "zero-tariff" imported goods, a traceability code management system for offshore duty-free goods, the "Yangpu Port in China" ship registration system," and "credit plus" approval services.

These institutional innovations have further stimulated the development vitality of the Hainan FTP and have played a positive role in enhancing its international competitiveness. For example, we launched China's first "single-window" system for international investment, achieving the goal of requiring only a single visit to register and establish an enterprise. The number of forms and documents required by enterprises has been reduced by 55%, and the approval process time has been cut by 70%. Additionally, a number of institutional innovation achievements have also been explored and established in areas of foreign-related lawyer services, international commercial dispute resolution, and the joint review and inspection of foreign nationals' work and residence permits.

Next, we will prioritize institutional integration and innovation as key approaches to create more remarkable achievements. First, we will focus on independent customs operation s and promote institutional integration. With no existing models to draw from, especially in the supervision of "second line" ports, we propose basic strategies such as "minimizing customs clearance time and the clearance processes , categorized supervision, smart supervision, and credit supervision." We must explore and establish a sound and efficient operating model through extensive institutional innovation. Second, we will focus on institutional opening-up through pilot projects. With greater determination and effort, we aim to align with high-standard international economic and trade rules. We will focus on building "two headquarters bases," "two networks," and "two hubs" and accelerating exploration in areas such as improving property rights protection, market access, fair competition, and social credit management. Third, we will concentrate on reforming and improving institutions in key areas. We will adopt a problem-oriented approach and swiftly address bottlenecks restricting Hainan's high-quality development. For example, to improve the business environment, we will strengthen the concept of "integrated government" and effectively solve problems in market access, resource acquisition, fair law enforcement, and the protection of rights and interests. This will provide companies with confidence and accelerate the development of a business environment based on the rule of law, internationalization and facilitation. Thank you.

National Business Daily:

We've noticed that the wild population of Hainan gibbons has increased to 37, distributed across six families , which has heightened expectations for Hainan's Tropical Rainforest National Park. How does Hainan plan to meet these expectations and further develop the National Ecological Civilization Pilot Zone ? Thank you.

Liu Xiaoming:

Thank you for your question and your thorough research. Indeed, the population of Hainan gibbons, once as low as 11 across three families, has grown to 37 across six families. You have certainly done your homework well. Let me answer your question.

The Hainan Tropical Rainforest National Park, as one of the first five national parks in China, is recognized by General Secretary Xi Jinping as a "national treasure," and is an epitome of Hainan's efforts to build the National Ecological Civilization Pilot Zone. In Hainan, not only can you enjoy the sun, beaches, and waves, but you can also delve deep into the rainforests to breathe the fresh air and discover its magical allure.

The National Ecological Civilization Pilot Zone is one of the strategic roles designated to Hainan by the central government. In recent years, we have steadfastly prioritized ecological development by "setting scientific objectives, maintaining ecological redlines, serving as a model, and exploring new paths" to actively advance the development of the pilot zone.

First, we have established clear scientific objectives. We aim to achieve nationally leading standards in environmental quality and ecological conservation, making Hainan a prominent showcase of the practices and achievements of Xi Jinping Thought on Eco-Civilization to the world.

Second, we have been upholding strict ecological redlines. We actively engage in initiatives to protect our blue skies, clear waters, and clean lands, rigorously addressing any issues to ensure continuous improvement in our environmental conditions. Last year, for example, we achieved a 99.5% rate of good or excellent air quality days, a PM2.5 level of 12 micrograms per cubic meter, and 95.9% of our provincial surface waters were rated as good or excellent.

Third, we aim to serve as a model. This involves the six landmark projects that have already yielded significant results. For instance, we are actively building Hainan into a clean energy island and promoting the adoption of clean energy vehicles. Hainan has the country's highest adoption rate of clean energy vehicles, with one out of every two new vehicles fueled by clean energy. Moreover, the Boao near-zero carbon demonstration zone is now operational and is striving to develop globally recognized "Boao Standards."

Fourth, we are exploring new paths to convert ecological advantages into developmental and competitive advantages. For example, a bamboo fungus cultivation project in Baisha county has implemented the Gross Ecosystem Product (GEP) accounting method to evaluate its ecosystem, product and cultural research values. This project received a 500,000 yuan loan without collateral, encouraging businesses to engage in transformative environmental practices and ensuring local communities benefit from the ecological environment. This approach promotes both a high level of environmental protection and high-quality economic and social development.

We fully understand that Hainan belongs not just to its local residents, but also to the entire Chinese population. We will make greater efforts to develop a high-quality National Ecological Civilization Pilot Zone, strive to pioneer a beautiful China, safeguard our national garden throughout all seasons, and better fulfill the people's deep affection and expectations! Thank you!

Sansha Satellite TV:

Hainan's foreign trade has shown strong momentum in recent years, with private enterprises becoming the main force behind this expansion. Could you elaborate on the measures Hainan is taking to promote the development of the private economy? Thank you.

Chen Jiyang:

The private economy in Hainan can be summarized by the figures "8-6-9-9-9." To date, Hainan is home to 3.8 million private businesses, which contribute over 80% of the province's tax revenue, nearly 60% of its GDP, and about 90% of employment opportunities, among which 90% are high-tech enterprises. Private businesses account for 97% of all business entities in the province, underscoring that the private sector is an indispensable force in the construction of the Hainan FTP and a focal point in improving Hainan's business environment.

Hainan is committed to unswervingly consolidating and developing the public sector and unswervingly encouraging, supporting and guiding the development of the non-public sector . We are dedicated to creating a favorable environment for the private sector by improving the system of fair competition, treating all types of business entities equitably, and enhancing support for the private economy and private businesses. Our main efforts are concentrated in the following three areas:

First, we are strengthening policy guidance. We have developed 26 specific measures to support the development of the private economy, focusing on six aspects including enhancing the confidence of private enterprises. These measures include integrating support and encouragement indicators for the private economy into the economic and social development plans at all levels across the province, as well as into comprehensive performance assessments of high-quality development at the municipal and county levels .

Second, we are improving our institutional framework. We have meticulously implemented the Regulations of Hainan Free Trade Port on Fair Competition , the country's first local regulation on fair competition, and continuously conducted screenings and cleanups of explicit and implicit barriers to market access. We have introduced a series of machine-assisted reforms, such as machine-assisted planning and bidding processes, ensuring that private economic entities can compete on an equal footing. Taking the machine-assisted bidding system as an example, we have innovatively implemented a fully digital transaction process for bidding and government procurement. As of the end of 2023, these transactions amounted to 15.52 billion yuan. Among the 276 bidding sections completed last year, the number of participating bidding entities per unit section increased by 12.4 times. In the past, these numbers were often in single digits; now, they generally reach double digits, and in some bidding sections have reached triple digits, indicating a rapid increase in the participation of private economic entities.

Third, we have enhanced service efficiency. The private sector is an important target of our enterprise services. Last year, the province embarked on a comprehensive survey and service campaign for enterprises above the designated size, delivering policies, services, and solutions to enterprises, with private businesses accounting for 38% of the total. This year, we will continue to carry out special service actions targeting 10,000 enterprises, with private enterprises expected to account for nearly 90%. Thank you.

Guangming Daily:

Recently, Hainan province unveiled a series of key talent policies, including the Measures for Comprehensively Attracting, Cultivating, and Utilizing Talent in Hainan FTP. These policies represent a comprehensive optimization and enhancement of existing frameworks. Could you please elaborate on the province's achievements in attracting, cultivating, and utilizing talent in recent years, and also share your plan for the future?

Liu Xiaoming:

Thank you for your question. Hainan province has steadfastly adhered to the principle that talent is the primary resource. We have coordinated the implementation of the One Million Talent Recruitment Action Plan of Hainan Province and the "South China Sea Series" talent training initiative, creating a conducive environment for both living and professional growth, thus cultivating a fertile ground for talent development. Over the past five years, Hainan has successfully attracted nearly 700,000 talents from diverse backgrounds.

Looking ahead, we aim to further enhance the integrated development of education, science, technology and talent. We will continuously refine our policies to support talent development, striving to create a vibrant environment where talent from all corners of the globe converges to jointly build the FTP . To this end, we will deploy "five strategic cards":

First, we will play the card for "talent attraction and cultivation." We aim to attract top talent more frequently and effectively. For instance, teams selected for the Hainan Provincial Excellent Talent Team may receive up to 30 million yuan in funding. Simultaneously, we are dedicated to vigorously developing local talents and accelerating the implementation of the South China Sea Talent Development Plan in conjunction with the "Hainan Merchant" training program.

Second, we will play the card for "platform construction." With the operation of Yazhou Bay National Laboratory , the Hainan Deep-Sea Technology Innovation Center , and the imminent commissioning of the commercial space launch site, Hainan province has attracted a string of world-class scientific and technological platforms. These provide the province with world-class research facilities and an entrepreneurial environment, offering a broad stage for talent development. Furthermore, these platforms facilitate the development of new quality productive forces and their important practice bases in light of Hainan's actual conditions.

Third, we will play the card for "reforms." We will enhance the talent evaluation system, placing greater emphasis on innovative value, ability, and contribution. We will explore reforms in the property rights system for scientific and technological achievements, alongside comprehensive intellectual property rights protection. Additionally, we will establish a system that balances the free exploration of scientific research talents with organized scientific research, enabling talents to freely showcase their abilities within the province.

Fourth, we will play the card for "opening-up." We will introduce more convenient and open policies regarding foreigners' entry, exit, and work permits to support international scientific and technological exchanges and cooperation. Hainan province, for instance, boasts a visa-free entry policy for citizens of 59 countries and has attracted foreign talents from over 100 countries and regions to reside and work within the province.

Fifth, we will play the card for "services." We will continuously enhance public services, ensuring that talent of all kinds can work comfortably, happily, and with dedication in the province. For example, to address the housing needs of talents, we will vigorously develop affordable housing options. These options will allow them to purchase properties at prices that do not exceed 10 times their annual family income or 60% of the previous year's average commercial housing sales price. Additionally, talents in different categories are eligible for corresponding housing subsidies. We also issue Tianya Elite Cards , which grant high-level talents access to premium services in areas such as children's education, healthcare and transportation.

Today, I extend a heartfelt invitation to outstanding Chinese and foreign talents, as well as graduating students. We eagerly anticipate and welcome you to choose Hainan province, integrate with our community, and contribute to its development. Let us work together to build the Hainan FTP, inspire our youth, and realize our dreams. Thank you!

Xing Huina:

That concludes today's press conference. Thank you to the four speakers and all the members of the media for your participation. Goodbye.

Translated and edited by Wang Qian, Xu Xiaoxuan, Liu Jianing, Liu Sitong, Zhang Rui, Zhou Jing, Li Huiru, Zhang Tingting, Zhang Junmian, Liu Caiyi, Wang Wei, Yan Bin, Huang Shan, Yan Xiaoqing, Liu Qiang, Guo Yiming, Yuan Fang, Wang Ziteng, Li Xiao, 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. Zhou Naixiang, deputy secretary of the Communist Party of China Shandong Provincial Committee and governor of Shandong province

Mr. Fan Bo, vice governor of Shandong province

Mr. Song Junji, vice governor of Shandong province

Mr. Sun Aijun, director of the Shandong Development and Reform Commission

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 10, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding the eighth briefing in the series "Promoting High-Quality Development." We have invited Mr. Zhou Naixiang, deputy secretary of the Communist Party of China (CPC) Shandong Provincial Committee and governor of Shandong province, to brief you on Shandong's practice in green, low-carbon and high-quality development, and to take your questions. Also present today are Mr. Fan Bo, vice governor of Shandong province; Mr. Song Junji, vice governor of Shandong province; and Mr. Sun Aijun, director of the Shandong Development and Reform Commission.

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

Zhou Naixiang:

Good morning, everyone. It's a great pleasure to brief you on Shandong's high-quality development. First of all, on behalf of the CPC Shandong Provincial Committee, the Shandong provincial government and the more than 100 million Shandong residents, I'd like to express my heartfelt gratitude to people from all walks of life for their long-term interest in and support for Shandong's development. 

Shandong is a major province in terms of population, culture, resources and economy. It bears the significant responsibility entrusted by the CPC Central Committee and the State Council to build a pilot zone for green, low-carbon and high-quality development.

Showing great care and high expectations for Shandong, General Secretary Xi Jinping has made inspection visits to the province on multiple occasions, providing guidance and charting the course for us and requiring us to lead the way and break new ground. We have kept in mind the general secretary's expectations, shouldered our missions and forged ahead, making solid progress in promoting high-quality development and fostering a strong, modern province. 

The economy has improved in both quantity and quality. Shandong's GDP has grown by an average of over 6% annually, reaching 9.2 trillion yuan ($1.27 trillion) last year, with three cities surpassing the 1-trillion-yuan mark. The output of high-tech industries has accounted for over 51% of the total industrial output of enterprises above designated size, an increase of over 3 percentage points year on year, and the number of market entities in high-tech industries has reached 14.74 million. The major national strategy for ecological protection and high-quality development of the Yellow River basin has been thoroughly implemented. Approval has been given to develop the metropolitan areas of Jinan and Qingdao.

Abundant results have been achieved in scientific and technological innovation. R&D spending across Shandong has maintained a growth of over 12% in the past three years. With construction of Laoshan Laboratory initiated, Shandong now boasts 21 key national laboratories. The world's first fourth-generation nuclear power plant, China's Shidaowan high temperature gas-cooled reactor nuclear power plant, has gone into commercial operation. The Oriental Maritime Space Port has sent 57 satellites into space through sea launches. The world's first high-speed maglev transportation system with a speed of 600 kilometers per hour has rolled off the assembly line. The province owned 240,000 invention patents by the end of last year, up 26.5% year on year.

Industrial upgrading has been accelerated. The value added of industries above designated size has maintained an average growth rate of 7.4% over the past two years. A total of 11 flagship industrial chains have been cultivated at a faster pace. Shandong is now home to more than 200 manufacturing enterprises that are champions in their individual categories, 1,032 "little giant" companies (novel and elite small and medium-sized enterprises that specialize in a niche market, boast cutting-edge technologies, and show great potential), and over 45,000 small and medium-sized sci-tech enterprises. Shandong also boasts 47 national industrial internet platforms, with its industrial digitalization index ranking among the top in the country. 

Breakthroughs have been made in infrastructure building. The length of in-service high-speed railways in Shandong has reached 2,810 kilometers, ranking first nationwide. Construction of the Tianjin-Weifang and Weifang-Suqian high-speed railways — two sections of the second Beijing-Shanghai high-speed railway — as well as the Shandong section of the Xiong'an-Shangqiu high-speed railway has been expedited. The length of expressways has exceeded 8,400 kilometers. Significant progress has been made in building the modern water network. Over 200,000 5G base stations have been put into operation.

The ecological environment has continued to improve. Energy consumption per 10,000 yuan of GDP has decreased by 15.8% over the past three years. The installed capacity of new energy and renewable energy has exceeded 97 million kilowatts. The average concentration of fine particulate matter (PM2.5) has dropped by 19% over the past three years, and 83.7% of surface water sections monitored by the state have been rated either good or excellent for quality.

The people's well-being has improved. Government spending for people's well-being has remained at around 80% of the total amount. Over 1.2 million urban jobs were added annually, and public services and social security have continuously improved.

On the new journey, we will implement the general secretary's important instructions and requirements on Shandong's development, making solid efforts to write a new chapter of Chinese modernization in Shandong. We will take concrete actions to resolutely advocate the establishment of both Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and resolutely uphold Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and uphold the authority of the Party Central Committee and its centralized, unified leadership. This year, we will make efforts to ensure GDP growth reaches more than 5% and the per capita disposable income of residents increases by around 5.5%.

First, we will make solid efforts to nurture and develop new quality productive forces. We will implement the three-year action plan for developing new quality productive forces, enhancing scientific and technological innovation, and reinforcing the principal role of enterprises. A total of 100 major programs targeting sci-tech innovation will be carried out in the integrated circuit industry and machine tool industry. We will advance industrial upgrading and seize significant opportunities to promote large-scale equipment updates and consumer goods trade-ins. We will intensify our efforts to build a modern industrial system, which will support the development of six traditional industries, nine competitive industries, nine emerging industries, and seven future industries. We will also ramp up efforts to attract and cultivate talent by enhancing our initiatives to attract and retain top talent, our programs to cultivate and support exceptional scientific and technological talent, and the Taishan talent programs. By doing so, we aim to facilitate a mutually reinforcing interaction among science, education and talent.

Second, we will remain committed to building Shandong into a model of rural revitalization. We will intensify our efforts to build a beautiful and harmonious countryside, making it an attractive place to live and work. We will also continue to advance the construction of the "Granary of Shandong." We will ensure that annual grain production remains stable above 110 billion kilograms and that the output of vegetables, fruits, aquatic products, meat, eggs, and milk remains among the highest in the country. Moreover, we will make sure our total output value of agriculture, forestry, animal husbandry, and fisheries continues to lead the country.

Third, we will ramp up efforts to achieve new heights of opening-up. We will promote the development of national-level opening-up platforms, including the China-SCO Local Economic and Trade Cooperation Demonstration Area (SCODA), the Jinan Start-up Area for Growth Drivers Transformation, and the pilot free trade zone. We will make greater efforts to attract high-quality investment and consolidate and improve foreign trade and investment. We will further boost the quality and efficiency of government services, and cultivate a market-oriented, law-based and world-class business environment.

Fourth, we will make solid efforts to build Shandong into a maritime province. We are committed to building world-class port clusters and supporting the development of competitive industrial clusters, such as offshore engineering equipment and marine biomedicine. We also aim to increase the cargo throughput of Shandong's coastal ports to over 2 billion tons and ensure that at least 95.6% of our coastal waters maintain good water quality.

Fifth, we will intensify efforts to build a beautiful Shandong. Efforts will be made to cut carbon emissions, reduce pollution, and expand green development. We will also accelerate the construction of five major clean energy bases, such as nuclear and offshore wind power bases, enabling more cities to use the energy generated by nuclear power. We are committed to creating beautiful national-level rivers, lakes, and bays to make Shandong a place where waters are cleaner and mountains are greener.

Sixth, we will ensure and improve people's well-being. This year, we aim to create more than 1.1 million urban jobs and 100,000 new urban public welfare jobs. Additionally, we plan to renovate and upgrade 560,000 old urban residential communities and 10,000 village medical clinics. We will devote greater efforts to key areas of people's livelihoods, including education, healthcare, social security, elderly care, and cultural activities, all aimed at improving the quality of people's lives.

That's all for my introduction. Thank you. 

Chen Wenjun:

Thank you, Mr. Zhou. Now, the floor is open for questions. Please identify the news agency you represent before asking your questions.

CCTV:

I've learned that Shandong's first local regulation for the protection of the Yellow River will take effect on July 1 this year. Given that Shandong province serves as an important area for the ecological protection and high-quality development of the Yellow River Basin, what achievements has the province made in implementing this major national strategy? Additionally, what new efforts will be made in this regard? Thank you.

Zhou Naixiang:

I'll answer this question. The Yellow River meanders for thousands of miles and flows into the sea in Dongying, Shandong province.

General Secretary Xi Jinping has always kept the development of the Yellow River in mind and has required Shandong to "take the lead in advancing the ecological conservation and high-quality development of the Yellow River Basin."

We have comprehensively implemented policies, focused on effective implementation, and made significant progress.

Here, I would like to use a few figures to illustrate this progress:

The first is 373. This refers to the number of bird species currently inhabiting the Yellow River Delta National Nature Reserve, which is twice as high as the number during its early construction. Over the years, we have restored more than 300,000 mu (20,000 hectares) of wetlands in total. With flocks of birds flying along the river and inhabiting its surrounding area, this major nature reserve is brimming with vibrant vitality. We welcome you to visit the Yellow River Estuary National Park.

The second is 600,000, which represents the number of residents relocated from the Yellow River floodplain and those whose houses were fortified. We have adopted multiple measures, such as relocating people to more hospitable areas, building elevated foundations in nearby neighborhoods, and providing follow-up support, allowing residents in the river's floodplain to break free from the threat of flood disasters and live in peace. 

The third is 8 million mu, representing the amount of land nationwide dedicated to new varieties of salt-tolerant and alkali-resisting crops cultivated in Shandong. We have established the National Saline-alkali Land Comprehensive Utilization Technology Innovation Center and successfully cultivated 37 new varieties of salt-tolerant and alkali-resisting crops, such as soybeans, rice and potatoes. These efforts have filled multiple gaps, ensuring the application of salt-tolerance technology, also referred to as the "salt-tolerance chip," in grain planting in China. 

The last figure is 37 million metric tons. It refers to the overall reduced production capacity in steelmaking, aluminum electrolysis, and oil refining by the nine cities along the Yellow River. We have established 370 green factories and 38 green industrial parks, all above the provincial level. This is part of our efforts to transform our industries toward green and upgraded development.

There are still more aspects of our work, which I will not list individually.

Going forward, to make the Yellow River a river of happiness that brings benefits to the people, we will make steadfast and persistent efforts focusing on three main aspects:

First, we will work to ensure the long-term stability of the Yellow River. 

We will implement the flood control project for the lower reaches of the Yellow River as outlined in the 14th Five-Year Plan. A total of 24 riverways will be renovated, and 10 diversion culverts and sluices will be rebuilt. Particular efforts will be put into improving the security level of Dongping Lake's flood storage and detention area, which is the only vital flood storage and detention area in the Yellow River Basin. Once completed, it will greatly enhance the flood control capacity in the lower reaches of the Yellow River. We are steadily advancing this project.

Second, we will strengthen ecological conservation and governance.

We will accelerate our efforts to protect the ecological corridors along the Yellow River, create a high-quality Yellow River Estuary National Park, strengthen the comprehensive management of rural nonpoint source pollution, and carry out the action plan on biodiversity conservation. With these efforts, we will strive to make the Yellow River Delta more beautiful and charming.

Third, we will promote high-quality transformation and upgrading across the Yellow River region.

The integrated development of the nine cities along the Yellow River will be advanced, and a great sci-tech innovation corridor will be created in the region. We will also further develop our competitive industries, such as high-end equipment, the green chemical industry, and modern agriculture. Additionally, we plan to build an integrated 10-gigawatt wind power and solar energy storage and transmission base on the salt and alkali mudflats in north Shandong.

Moreover, we will build a high-quality Shandong section of the Yellow River National Cultural Park, strengthen our calling card — the Nishan Forum on World Civilizations — and create an internationally influential Yellow River cultural experience corridor. Thank you.

Phoenix Satellite Television:

As we know, Shandong boasts well-developed traditional industries. Could you please elaborate on what plans Shandong has to advance new-type industrialization and future-oriented industries that are suited to its local characteristics? Thank you.

Fan Bo:

Thank you. I'm glad to answer your question. Shandong is a major economically developed province, and also an industrial and manufacturing powerhouse. The province boasts large-scale industries with complete supply systems. We are making rapid progress in replacing old growth drivers with new ones. The province has also effectively integrated the application of information technology with industrialization, resulting in sound industrial development momentum. Shandong boasts all 41 major industrial categories, 197 intermediate categories out of 207, and 603 of 666 small categories. In 2023, the industrial value-added of the province reached 2.92 trillion yuan, and investment in the "four new" economies — comprising new technologies, industries, business forms and models — grew by 11.1%. Additionally, Shandong ranks among the highest in the country in terms of the number of national-level industrial internet platforms, the industrial digitization index, and the digital transformation index for the manufacturing industry. In the first two months of this year, our growth rate of the added value of industrial enterprises above designated size was 9.4%, 2.4 percentage points higher than the national level.

We will prioritize the development of the industrial sector, focusing on high-end, smart, green and clustered development. We aim to explore new approaches and assume greater responsibility for driving new industrialization forward.

We will make every effort to promote high-end sectors.

We will optimize traditional industries in a coordinated manner, boost emerging industries, and plan the development of future-oriented industries. We will promote industrial innovation through technological innovation, develop new quality productive forces tailored to local conditions and circumstances, and build a modern industrial system underpinned by advanced manufacturing. By doing so, we aim for high-tech industries to contribute around 52% of the total output value this year from industrial enterprises above designated size.

We will spare no effort to foster new growth engines featuring intelligent technologies.

The digital industry will be advanced alongside the digital transformation of traditional industries. The province will speed up the upgrading of enterprises with smart, digital and IT technologies, turning digitalization into a powerful engine for new industrialization.

This year, the digital coverage of industrial enterprises above designated size will increase to around 90%, which is 2 to 3 percentage points higher than in 2023. 

We will spare no effort to promote the transition to green development.

We will intensify our efforts to advance energy conservation and carbon and pollution reduction initiatives to build a comprehensive green industrial system. This year, we aim to ensure that energy consumption per unit of added value for industrial enterprises above designated size decreases by more than 4%.

We will spare no effort to build industrial clusters.

Our integrated approach will support enterprises of all sizes, strengthen key industrial chains, and develop high-quality advanced manufacturing clusters, industrial parks and development zones.

In 2024, we will aim to establish about 5,000 new industrial enterprises above designated size. Additionally, around 20 enterprises will increase their annual revenue to 10 billion yuan and approximately 10 will increase their annual revenue to 50 billion yuan. We will also work to nurture about 1,000 innovative SMEs that use special and sophisticated technologies to produce novel and unique products.

Future-oriented industries are an important area of new industrialization. Shandong has proactively adopted development plans in 24 key areas, including blockchain technology and virtual reality (VR). With a focus on seven future-oriented industries, including artificial intelligence (AI), quantum technology and deep sea and aerospace exploration, we will intensify efforts to build several pioneering zones and specialized industrial parks to accelerate the creation of new strengths for new industrialization. Thank you.

ITAR-TASS:

I noticed that last year, Shandong's imports and exports increased by 1.7% year on year. In particular, its trade with Russia grew by 27.6%. What are the reasons behind the fast growth of Shandong's imports and exports? What measures will you take to further enhance its foreign trade? Thank you.

Song Junji:

Thank you for your questions. As you mentioned, last year, Shandong's imports and exports maintained good momentum for growth, with the total value reaching 3.26 trillion yuan. The province has led the country in agricultural exports for 25 consecutive years and engages in trade with over 230 countries and regions. Russia is also an important cooperation partner. As one of the leading provinces in opening-up and trade, Shandong has given full play to its role and taken on significant responsibilities.

These achievements are mainly due to our integrated efforts in policymaking, market expansion and service improvement. Meanwhile, we have ensured traditional growth drivers like general trade and new ones like cross-border e-commerce develop concurrently. For example, in terms of policymaking, the province issued seven documents last year and 153 policies and measures related to commerce. In terms of market expansion, we have implemented a plan to organize local companies to participate in exhibitions held overseas. Local foreign trade companies attended more than 540 overseas exhibitions last year. In terms of service improvement, we have improved mechanisms such as "Commerce Plus Port," "Commerce Plus Finance," and "Commerce Plus Customs," providing over 641 billion yuan in credit for commercial and trade enterprises in 2023. All these efforts have provided solid support for stabilizing and growing foreign trade in Shandong.

This year, we will prioritize cultivating new momentum in foreign trade as a key focus of opening up wider to the world, strive to leverage strengths and address weaknesses, promote stability and improve quality in foreign trade, and focus on achieving the "four news."

First, we will introduce "new policies." Since the beginning of this year, in order to promote exports of the "new trio" (electric vehicles, lithium-ion batteries and photovoltaic products), build leading supply chain enterprises and promote the development of cross-border e-commerce, four documents and 37 policies and measures have been released.

Next, we will focus on areas such as intermediate trade, market procurement trade and overseas warehouse construction, continue to optimize a series of policies and measures, expand the scale of credit support such as "Shandong Trade Loan" and "Tariff Insurance," provide precision support for foreign trade enterprises, and continuously stabilize market expectations.

Second, we will explore "new markets." There is a common saying in the foreign trade industry: "After a thousand emails, we still need to meet in person." Therefore, Shandong province launched the "Remarkable Shandong for Worldwide Trade" market expansion campaign this year. We plan to hold and participate in 263 exhibitions and 10 themed matchmaking events overseas this year, support enterprises in "going out" to expand markets, and help more and more high-quality products from Shandong go overseas.

Third, we will foster "new products." We will actively leverage the RCEP agreement, deepen economic and trade connections with key ASEAN markets, consolidate and expand the export scale of intermediate goods and green, low-carbon products, actively integrate into regional industrial chains, and better transform Shandong's industrial advantages into trade advantages.

Finally, we will develop "new business models." We will implement the Cross-border E-commerce Leap Development Action, cultivate 50 new well-known cross-border e-commerce brands and 10 cross-border e-commerce trading platforms this year, and promote the growth and strength of cross-border e-commerce.

At the same time, we will optimize market procurement trade, provide precision support to enterprises in areas such as exhibition and sales platforms, overseas marketing promotion and mutual market development, continuously foster new foreign trade growth, and strive to deliver a "report card" showing stable quantity and quality improvement in imports and exports. Thank you.

Beijing Youth Daily: 

I noticed that netizens have recently given Shandong a new title, calling it the "First Province of High-speed Rail in China." The reason is that as the governor mentioned, the length of in-service high-speed railways in Shandong has reached 2,810 kilometers, ranking first in the country. As the gateway to the outside world in the Yellow River Basin, how will Shandong expand and strengthen its transportation advantages and better play a leading role? Thank you.

Zhou Naixiang:

Thank you. I'll answer this question.

With strong transportation, all industries thrive. Shandong is the first province in the country to build a strong transportation demonstration zone with relevant ministries. In recent years, we have accelerated the construction of a modern, comprehensive, multidimensional transportation network and achieved positive results.

In terms of railways, the construction of "Shandong on the tracks" has been accelerated.

Within the province, the high-speed rail network continues to expand, with five new high-speed rail lines completed in the past three years. A total of 145 trains per day operate on the Jinan-Qingdao high-speed rail line, achieving "bus-like" operations.

Outside the province, there are now four high-speed rail corridors connecting Shandong to other provinces. Currently, there are seven high-speed rail lines under construction. Once completed, the total length of high-speed railways in Shandong will exceed 4,300 kilometers, realizing high-speed rail access to every city and seven corridors reaching other provinces.

In terms of freight railways, the backbone freight railway network of "Four Verticals and Four Horizontals" continues to improve, with a total length of 5,018 kilometers, and all main lines have been electrified.

Regarding highways, the urban and rural road networks are becoming increasingly dense.

In the past two years, 14 expressways have been completed and opened to traffic, and 33 are under construction. The total length of expressways in operation has exceeded 8,400 kilometers, 36.6% of which are composed of six or more lanes.

The nation's first zero-carbon smart highway, the Jinan-Weifang Expressway, has been completed and opened to traffic. The scale of rural road networks has reached 264,000 kilometers, achieving the goal of "every village connected by asphalt road, every household connected by hardened road."

In terms of airports, solid progress has been made in constructing airport clusters.

The 4F-class Qingdao Jiaodong International Airport has been completed and put into operation. The second construction phase of Yantai Airport has been finished, while Jining Da'an Airport has been relocated and is now operational. The second construction phase of Jinan Airport has also been accelerated. 

Moving forward, we will continue to expedite the development of transportation infrastructure, with a planned investment of 325 billion yuan in transportation this year.

First, we will accelerate the establishment of a comprehensive transportation network. Situated in proximity to Beijing, Tianjin, and Hebei in the north, connected to the Yangtze River Delta in the south, neighboring Japan and South Korea in the east, and linked to the Belt and Road in the west, Shandong possesses natural advantages for constructing an interconnected transportation network. Following the strategy of ensuring smooth channels, weaving dense networks, strengthening hubs, and promoting improvement and upgrades, we will actively construct 10 major transport infrastructure channels featuring four horizontal and five vertical routes, stretching along the Yellow River and connecting with the sea. We will also expedite the construction of world-class port clusters.

We will accelerate the planning and construction of the Laiwu-Linyi high-speed railway. Upon completion, the railway will unleash tremendous potential in the hinterland of Shandong, including the Yimeng Mountain area.

Second, we will speed up efforts to improve the efficiency of transportation services. The freight logistics system will be optimized, further promoting road-to-rail and road-to-waterway transfer and the vigorous development of multimodal and sea-rail intermodal transport. More than 2,300 China-Europe freight trains departing from Shandong will be operated this year. We will implement freight railway network coordination, expansion, and enhancement projects, with nine renovated railway projects, including the line from Dongjiakou to Yishui.

We will promote comprehensive transport services with a single ticket system, a single document system, and a single container system, facilitating the seamless movement of people and goods.

Third, we will accelerate the development of new business forms in smart transportation. By incorporating intelligent technologies into Shandong's transportation infrastructure, we will actively develop replicable and applicable applications, such as autonomous driving and fully automated port operations. This will empower transportation development with smart technologies.

In conclusion, we will fully leverage the pioneering role of transportation to explore new paths and contribute to boosting China's strength in transportation from Shandong. Thank you.

Economic Daily:

I've noticed that in 2023, the digital economy's proportion of Shandong province's GDP exceeded 47%. What measures will be taken in the future to promote the deep integration of the digital economy and the real economy to further drive the high-quality development of the digital economy? Thank you.

Sun Aijun:

Thank you for your concern. The digital economy is key to winning future competition. We have accelerated efforts to build Shandong into a digital powerhouse in recent years. Last year, the value-added of the digital economy reached 4.3 trillion yuan, accounting for 47% of the province's GDP, which is nearly 8 percentage points higher than the proportion of the secondary industry. It can be said that the digital economy has contributed almost half of Shandong's GDP. In particular, as a major manufacturing province, we have made great efforts to promote the integration of the digital economy and the real economy. Shandong ranks among the top in the country for its industrial digitalization index, with 47 national-level industrial internet platforms and 35 national-level smart factories, the most in the country.

Last year, the Shandong Provincial Committee of the CPC and the Shandong Provincial People's Government held a conference on the high-quality development of the digital economy. It established a special fund of 10 billion yuan, with increasingly strong support. We will seek breakthroughs in three major areas, leading economic and social transformation in all aspects with digital transformation.

First, we will strengthen the digital industry, which is our key focus. After years of cultivation, we have built a sound foundation. Shandong province's big data industry accounts for one-eighth of the country's total, and the integrated circuit industry now has a complete industrial chain. Shandong company Inspur's shipments of general servers rank first in the country, and Goertek's virtual reality headsets account for 80% of the global medium- and high-end market. Based on these, we have planned and implemented 10 major projects, such as "Strong Chip" in integrated circuits and "Solid Link" in advanced computing, while launching 100 leading projects each year. We have formulated supporting policies in taxation, finance, and land use, provided targeted one-on-one support, and promoted the information technology industry's revenue to maintain double-digit growth, aiming to exceed 2.4 trillion yuan by the end of next year.

Second, we will deepen digital development. Approximately 20% of the province's efforts will be dedicated to digital industrialization, while the majority, around 80%, will be allocated to industrial digitalization. With a solid industrial foundation, Shandong has a high demand for smart transformation and various digital scenarios. Currently, we are implementing eight major actions to promote industrial digitalization, with 32 "industrial brains" supporting the digital transformation of the manufacturing sector. Over the next two years, we plan to establish more than 500 bases for smart agricultural applications and 10 platform economy clusters. By focusing on these areas, the province aims to tap into the huge market of industrial digitalization.

Third, we will enhance digital infrastructure. To develop the digital economy, the construction of new infrastructure is essential. We have two national internet backbone access points in Jinan and Qingdao, making us the first province in the country with "dual hubs." Shandong also has the largest number of Internet of Things terminals, totaling 220 million. We are committed to expanding these efforts. This year, all 16 cities in Shandong province will meet the gigabit city standard. In addition, we aim to build and put into operation another 70,000 5G base stations by the end of next year, bringing the total number to over 270,000. These efforts are aimed at further intensifying the digital infrastructure network and boosting the development of the digital economy. Thank you.

Xinhua News Agency:

Shandong boasts a diverse range of agricultural products with distinctive characteristics, including Zhangqiu scallions, Laiyang pears, and Weixian radishes, which have become well-known Shandong brands. What are the next steps for Shandong to leverage its advantage as a major agricultural province and drive progress in rural revitalization?

Sun Aijun:

Thank you for your question. As you mentioned, Shandong is a major agricultural province. With 6% of China's arable land and 1% of its freshwater resources, Shandong contributes 8% of the nation's grain, 10% of its meat, eggs and milk, 11% of its vegetables, 12% of its fruits, and 13% of its aquatic products. In 2018, General Secretary Xi Jinping assigned Shandong the crucial task of developing a model for rural revitalization. Over the past six years, with the general secretary's directive in mind, the whole province has made significant progress in accelerating rural revitalization and establishing itself as a major agricultural province.

In terms of industrial development, its total output value of the farming, forestry, livestock, and fishing industries reached 1.25 trillion yuan last year, ranking first in the nation. Shandong is the only province with over 10,000 agricultural product processing enterprises above designated size. Moreover, the province has surpassed 110 billion jin in total grain output for three consecutive years. Shandong has successfully cultivated five out of the top 10 wheat varieties promoted nationwide, playing a significant role in ensuring China's overall food supply.

In terms of increasing farmers' income, rural residents' income reached 23,776 yuan, 1.6 times that of 2017.

In pursuing rural development initiatives, we have achieved the harmless treatment of almost all domestic waste in rural areas. Moreover, optical fiber broadband now covers all villages in the province. These efforts have led to significant improvements in the rural environment and have made the daily lives of farmers much more convenient.

From this new starting point, we will deliver a solid performance in rural revitalization and further improve the quality and effectiveness of the Shandong model.

Our top priority is to safeguard food security. We have built more than 76 million mu of high-standard farmland. This year and next, we will build another 1.47 million mu and upgrade 6.13 million mu. Our goal is to create more high-stable-yield farmland capable of irrigation during droughts and drainage during floods. Efforts will be made to ensure that grain output remains stable at over 110 billion jin, fulfilling our commitment to ensuring food security.

The key is to accelerate the development of the entire agricultural industrial chain. We will focus on cultivating 100-billion-yuan industry clusters such as Shouguang vegetables, Yantai apples, and Yanhuang beef cattle, with the aim of bringing more high-quality agricultural products to people's kitchen tables across the nation. In addition, we will intensify efforts to promote the integrated development of the primary, secondary and tertiary industries. For example, Zhongyu Group in Binzhou city is a company that focuses on the deep processing of wheat. The company can produce over 600 kinds of products from 1 ton of wheat, generating a value 2.5 times higher than typical processing enterprises. Sanjianxi village in Zhangqiu district of Jinan city has increased its collective revenue by nearly 10 million yuan over the past five years by developing characteristic industries, such as ancient village clusters rich in folk culture. Numerous examples exist in sectors like deep processing of agricultural products, pre-made dishes, and rural tourism, all of which boast huge market potential. Therefore, we will make every effort to expand and strengthen these sectors.

The key to rural revitalization lies in improving the quality of life of farmers. Following an approach of contiguous development, we will strategically establish a batch of exemplary demonstration areas for rural revitalization in Shandong every year. Each demonstration area will receive a maximum subsidy of 50 million yuan, which will primarily be used for environmental governance and infrastructure construction, and aimed at enhancing the livability and suitability for both residence and employment in rural areas. Shandong has over 2.7 million practical professionals in rural areas, and we will leverage the driving force of this group to develop more industries that can bring prosperity to the countryside. By further expanding channels for increasing farmers' incomes, we aim to ensure that the over 40 million rural residents can share benefits created in pursuing rural revitalization.

That's all from me. Thank you.

China Arab TV:

In 2023, Shandong's domestic invention patents increased by 26.5% compared to the previous year, indicating an accelerating pace of innovation and development in the province. How will Shandong promote industrial innovation and develop new quality productive forces through sci-tech innovation? Thank you.

Song Junji:

Thank you for your attention. Shandong is a major province for sci-tech and innovation. With a large talent pool, solid industrial foundation and strong innovation capabilities, Shandong possesses favorable conditions and a good foundation for developing new quality productive forces.

In terms of investment, provincial-level funding for sci-tech innovation has exceeded 14.5 billion yuan for two consecutive years, leading to a 12.1% increase in R&D investment across the entire province.

In terms of achievements, significant breakthroughs have been made in domestic alternatives such as machines tools, carbon fiber and synthetic rubber. Additionally, the world's first fourth-generation high-temperature gas-cooled nuclear power plant has been put into commercial operation.

In terms of talent, there are over 7,400 national-level leading talents with expertise of strategic importance in the province, and the average annual influx of university graduates has reached 818,000 since 2020, representing a 43% increase compared to 2019.

In terms of industries, last year, economic investment in the "four news," represented by new technologies, new models, new formats and new industries, accounted for over 57% of total investment. The proportion of high-tech industries in the overall industrial output value reached 51.35%, an increase of 3.1 percentage points. The number of small and medium sci-tech enterprises has surpassed 45,000.

Sci-tech innovation is a core element in developing new quality productive forces. Going forward, we will firmly grasp innovation as a key factor and promote the deep integration of sci-tech innovation and industrial innovation. In this regard, there are four key aspects:

First, we will lead through integrated policy planning and guidance.

We are currently researching and formulating documents such as a three-year action plan for cultivating new quality productive forces, which will be issued and implemented in the near future.

Simultaneously, we will focus on the transformation of traditional industries, the cultivation of emerging industries and the layout of future industries. We will promote the integrated development of talent chains, education chains, industry chains and innovation chains, with the aim of concentrating innovation resources in new quality productive forces.

Second, we will leverage the role of enterprises as the main drivers of innovation.

This year, we plan to implement 100 major provincial-level sci-tech projects, of which no less than 90% will be led and undertaken by enterprises.

Additionally, we aim to restructure over 200 provincial key laboratories, with the proportion of work taken on by enterprises reaching approximately 75%. This will truly empower enterprises to take center stage and play a leading role in sci-tech innovation.

Third, we will promote achievements into the market.

We will carry out regular selection and release of "Shandong Excellent Achievements" for the market. Approximately five major innovative achievements will be selected and released each month. We will organize a matchmaking roadshow event every quarter, and select around 10 landmark achievements each year. These efforts aim to facilitate the transition of more promising achievements from the laboratory to the production line.

Fourth, we will create a first-class innovation and industrial ecosystem.

We will deepen the national reform pilot projects in sci-tech rewards, talent classification evaluation and achievement evaluation. This will accelerate the establishment of a talent evaluation system that is guided by innovation value, capabilities and contributions.

We will enhance scientific and technological cooperation and exchanges, promoting the construction of the Shandong branch of the Hong Kong Science Park. This year, we aim to secure 500 technology cooperation projects.

We will further implement the Taishan talent project and leading talent attraction plan. Additionally, we will host the third talent development conference, so that more outstanding individuals can thrive in Shandong. Thank you.

The Poster News APP:

Shandong has nearly one-sixth of the country's coastline. Could you please elaborate on the measures taken to make Shandong a competitive maritime province? Additionally, what are the next steps in this regard? Thank you.

Fan Bo:

Thank you for your concern and attention to Shandong province's marine work.

Focusing on implementing the arrangements to "pay more attention to managing the seas and oceans" and "build world-class ports," we have continuously innovated our ideas and measures, deepened reforms in key fields, adhered to land-sea coordination, and strived vigorously for our maritime strength. Solid steps have been taken in building a competitive maritime province, mainly reflected in the following "four accelerations":

We have accelerated the development of the marine economy. The province's gross ocean product exceeded 1.7 trillion yuan in 2023, maintaining the second position nationwide.

We have accelerated breakthroughs in the marine science and technology. Laoshan Laboratory, the only national laboratory in the marine field, has been put into operation. Shandong province has gathered 46 national marine scientific research platforms and has had 16 projects winning the National Science and Technology Awards in recent years, ranking first in the country.

We have accelerated the construction of ports. Shandong province has 29 large berths of 200,000 tons and above, enabling the accommodation of the world's largest ships. In 2023, the cargo throughput reached 1.97 billion tons, maintaining the first position in the country.

We have accelerated the improvement of ocean ecology. Last year, the proportion of excellent quality water in the nearshore areas was 95.6%, ranking third in the country.

Next, we will continue to promote three major actions, namely, the construction of ports, industries, and ecology.

The first action is to focus on building a world-class port cluster.

Leveraging our ports as the province's greatest advantage in opening-up, we will work with provinces along the Yellow River basin to build a corridor connecting land and sea. We will advance the formation of an opening-up pattern that integrates land-sea coordination, intermodal transportation at home and abroad, and mutual assistance between the eastern and western regions. We will strive to achieve a cargo throughput of over 2 billion tons and a container throughput of over 40 million TEUs, allowing more cargo to reach the sea and the world through Shandong's ports.

The second action is to gather efforts to cultivate new quality productive forces in the marine field.

We will focus on new technology breakthroughs. We will make an all-out effort to provide service and support, ensuring the standardized operation of Laoshan Laboratory. Aiming to address bottlenecks, we will advance the implementation of 44 major marine sci-tech innovation projects and two demonstration projects.

We will concentrate on advancing new manufacturing. We will nurture and expand industrial clusters, including high-end marine vessels and engineering equipment, marine biomedicine, and marine new energy and materials. We will build three world-leading bases for the research, development and manufacturing of marine engineering equipment, the marine biomedicine industry, and offshore wind power with a capacity of tens of millions of kilowatts.

We will focus on cultivating new business formats. We will vigorously develop marine ranching complexes, marine big data, artificial intelligence, and other forms, and build and improve a modern marine industrial system. By 2025, the annual average growth rate of the province's gross ocean product will be 6%, accounting for more than 18% of the region's GDP.

The third action is to focus on painting a new picture of harmony between humanity and the ocean.

We will build the Yellow River Estuary National Park and Changdao (Marine) National Park with high standards and implement ecosystem protection and restoration projects for seas, islands, bays, shorelines, beaches, and coastal wetlands to make the province's sea clearer, water more lucid, and beaches cleaner. We will create high-quality cities such as Qingdao, the "Vibrant Ocean Capital," Yantai, the "Fairyland Coast of Prestige," Weihai, the leisurely land of "Thousand-mile Mountains and Seas," and Rizhao, the "Sunny Coast of Vibrancy." The 3,505-kilometer coastline will become more colorful, fully displaying the province's beauty of nature, ecology and humanity. Thank you.

Science and Technology Daily:

The province of Shandong has traditionally been a major energy producer and consumer in China and faces the critical task of reducing coal consumption and controlling energy consumption. How will Shandong achieve green and low-carbon transformation? What measures will be taken to expand the development and use of new energy? Thank you.

Sun Aijun:

Thank you for your questions. As you mentioned, Shandong has traditionally been a major energy producer and consumer in China and has long played an important role in ensuring national energy security. In recent years, based on the actual situation of our own industry and energy structure, we have seized the major opportunity of building a green, low-carbon, and high-quality development pilot zone and accelerated energy transformation in two areas.

On the one hand, we have continued ramping up efforts to conserve energy. Just as Mr. Zhou Naixiang mentioned, in the first three years of the 14th Five-Year Plan, Shandong's energy consumption per 10,000 yuan of GDP dropped by 15.8%, while the economy grew at an average annual rate of 6%. This means we have achieved economic growth at a medium-to-high-speed with less energy consumption, which is not easy. Next, we will focus on key industries such as chemicals, steel, and electrolytic aluminum, exerting greater effort to improve corporate energy efficiency and meet the dual energy consumption control targets in the 14th Five-Year Plan.

On the other hand, the energy structure has been continuously adjusted and optimized. We have sped up the construction of a new energy system. As of the end of March this year, new energy and renewable energy sources account for 45% of the province's total installed power capacity, increasing by 15 percentage points from 2020. The proportion of coal-fired power generation has dropped to less than half of the total installed capacity, significantly reducing its dominance in our energy and electricity consumption.

Building on this basis, we will further accelerate the development of new energy and renewable energy. In this regard, Shandong is endowed with unique natural resources and favorable locational conditions. We have planned and constructed five major clean energy bases, including offshore wind farms, offshore photovoltaic projects, and the Jiaodong Peninsula Nuclear Power Base. Together with onshore wind farms and county-wide distributed photovoltaic projects, the total installed capacity will reach 240 million kilowatts, and the total project investment will exceed 2 trillion yuan, which can drive industrial investment of more than 860 billion yuan.

In terms of nuclear power, the CAP1400 unit will be completed and go into commercial operation this year. In June, the first phase of an expansion of Shidaowan Nuclear Power Plant will start. In addition, several projects, such as the first phase of the Zhaoyuan Nuclear Power Plant, are accelerating preliminary work. By the end of 2025, the scale of nuclear power in operation and under construction in the province is expected to reach 19.7 million kilowatts. Shandong will become a leading province in nuclear power generation.

In terms of wind power, there are currently 4.81 million kilowatts of installed capacity offshore in operation, ranking third in the country. This year, we will focus on advancing provincial-administrated offshore projects to open and integrate as much as possible. Onshore, we launched the first group of centralized wind power projects last year, totaling over 8.7 million kilowatts. These projects have started one after another. The development of the second batch of projects will be launched soon.

In terms of photovoltaics, Shandong's installed capacity ranks first nationwide. This year, we will accelerate the development of Lubei Base project and fully connect the 10-million-kilowatt projects included in the country's third batch of large-scale wind and solar bases to the grid. At the same time, on the consumption side, we are accelerating the development of new types of energy storage. This year, the total energy storage capacity will exceed 5 million kilowatts and continue to top the whole country. Through these measures, green power supply capacity will be greatly improved. By the end of 2025, the proportion of non-fossil energy consumption in the province will increase by more than 2.5%, making greater breakthroughs in energy transformation and low-carbon development. Thank you.

Chen Wenjun:

Due to time constraints, this will be the last question.

China Daily:

I've noticed that in recent years, Shandong has introduced a series of policies and measures, such as streamlining procedures for starting businesses, among others. How will you further create a more favorable environment for enterprises, allowing them to invest and develop in Shandong with confidence and assurance? Thank you.

Zhou Naixiang:

Thank you for the question. I'll take this one. A good business environment, especially top-notch government services, is the "golden signboard" for economic and social development.

The CPC Shandong Provincial Committee and the provincial government place high importance on the business environment, vigorously implementing actions to innovate and enhance the business environment. Shandong is continuously advancing the "Double Full Lifecycle and Double Hundred Services" project to streamline government services. Focusing on the "full life cycles" of both enterprises and individuals, over 100 high-frequency service items have been identified and published. Efforts have been made to achieve simplified, integrated, and comprehensive processing, with significant reductions in the number of procedural steps, application materials, and processing time compared to before the reforms. Shandong has taken the lead in carrying out the "No-Certificate Province" initiative nationwide. To date, 1,098 items have been canceled or shifted to a notification and commitment system for certificates and business licenses, and electronic documentation has been used over 700 million times.

Since last year, we have established a regular mechanism for communication between government and businesses. Leading officials at all levels take the initiative to engage with entrepreneurs through various means, such as visits to enterprises, setting up entrepreneur reception rooms, and face-to-face meetings at chambers of commerce or business associations. At the same time, we have opened a direct hotline to the governor for entrepreneurs, the public number "96178," and established the "2115" rapid-response mechanism for enterprise appeals. Upon receiving an appeal, we ensure on-site arrival or contact within two hours, propose handling suggestions within one working day, and resolve issues or confirm services within 15 working days.

These measures have achieved great results. According to the survey "Business Environment Evaluation by Ten Thousand Private Enterprises," conducted by the All-China Federation of Industry and Commerce (ACFIC), Shandong has been consistently ranked as one of the provinces with the best business environment in the country for four consecutive years.

Going forward, we will actively serve and integrate into the unified national market, promoting an interplay between a well-functioning government and an efficient market. We will strengthen the construction of a rule of law government, effectively address the appeals and issues of enterprises, and enable various types of businesses to invest, innovate and thrive in Shandong.

Dear journalists, Shandong is currently experiencing a convergence of strategic opportunities, solid development foundations, and prominent comparative advantages. Across the province, there is a high spirit of ambition, practical action, and entrepreneurial enthusiasm that continues to soar.

We will place greater emphasis on innovation-driven development, vigorously cultivating and developing new quality productive forces. We will prioritize ecological preservation, firmly following the path of green, low-carbon, and high-quality development. We will focus more on improving the business environment, enabling various businesses to thrive in Shandong. Furthermore, we will pay more attention to benefiting the people, striving to make the lives of those in Shandong more prosperous and fulfilling.

We sincerely invite everyone to visit Shandong to explore and experience "Friendly Shandong, Remarkable Shandong." We welcome your valuable opinions and suggestions on our work. Let us join hands to create a better tomorrow for Shandong together. Thank you all!

Chen Wenjun:

Thank you, Governor Zhou and all the speakers, and thank you to all the journalists present here. This concludes our press conference. Goodbye.

Translated and edited by Xu Xiaoxuan, Wang Wei, Gong Yingchun, Ma Yujia, Zhou Jing, Yuan Fang, Li Xiao, Zhang Junmian, Mi Xingang, Wang Qian, Liu Jianing, Huang Shan, Cui Can, Liu Caiyi, Wang Yanfang, Wang Ziteng, Zhang Rui, Yan Bin, Li Huiru, Liu Qiang, 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 Long, deputy secretary of the Communist Party of China (CPC) Fujian Provincial Committee and governor of Fujian province

Ms. Guo Ningning, a member of the Standing Committee of the CPC Fujian Provincial Committee and executive vice governor of Fujian province 

Mr. Meng Qian, director of the Fujian Provincial Development and Reform Commission 

Mr. Weng Yuyao, director of the Fujian Provincial Department of Industry and Information Technology

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 8, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference in the series "Promoting High-Quality Development" held by the State Council Information Office (SCIO). Today, we are pleased to have invited Mr. Zhao Long, deputy secretary of the Communist Party of China (CPC) Fujian Provincial Committee and governor of Fujian province, to brief you on pursuing high-quality development as an overarching task and advancing Fujian's practice for Chinese modernization, and to answer your questions. Also present today are Ms. Guo Ningning, a member of the Standing Committee of the CPC Fujian Provincial Committee and executive vice governor of Fujian province; Mr. Meng Qian, director of the Fujian Provincial Development and Reform Commission; and Mr. Weng Yuyao, director of the Fujian Provincial Department of Industry and Information Technology.

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

Zhao Long:

Thank you, Mr. Chen. Good morning, everyone. I'm very pleased to meet with you here to introduce the high-quality economic and social development of Fujian. First, on behalf of the CPC Fujian Provincial Committee and the Fujian provincial government, I would like to express my sincere gratitude to friends from all walks of life for your long-term interest in and support for Fujian.

It is well-known that Fujian is an important birthplace and practice ground for Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. General Secretary Xi Jinping worked in Fujian for 17 and a half years. During that period, he personally led and promoted the reform, opening-up and modernization of Fujian, creating valuable intellectual and cultural wealth, and practical achievements for us. Since assuming duties in the CPC Central Committee, the general secretary has always placed great importance on and cared for the high-quality development of Fujian, drawing a magnificent blueprint for a new Fujian featuring dynamic mechanisms, upgraded industries, improvement of people's livelihoods, and a beautiful environment. He explicitly put forward the "four requirements ," encouraging us to make greater progress in accelerating the modernization of the economic system, to better serve and integrate into the new development pattern, to make greater strides in exploring new ways to promote integrated development with Taiwan, and to achieve greater breakthroughs in creating a high-quality life. This has charted the course and provided fundamental guidance for Fujian's high-quality development.

This year marks the 10th anniversary of General Secretary Xi Jinping's proposal to build a new Fujian that is "dynamic, upgraded, prosperous and beautiful." Over the past decade, we have always kept his expectations in mind and pressed forward with gratitude, promoting high-quality development in all aspects. The province's gross domestic product (GDP) has successively surpassed three 1-trillion-yuan thresholds, increasing from 2.5 trillion yuan to 5.4 trillion yuan ($746.18 billion), ranking eighth in the country. Its per capita GDP has risen from 64,000 yuan to 130,000 yuan, ranking fourth in the country. Building a new Fujian in the new era has reached a new level, and a splendid scroll of Chinese modernization is gradually unfolding across Fujian province.

We have accelerated the building of a prosperous and strong Fujian, laying a more stable foundation for high-quality development. Today's Fujian is rapidly building a modern industrial system, covering 38 out of the 41 major industrial categories, with the proportion of value added manufacturing in GDP ranking fourth nationwide. It shows the following features: First, we are moving toward high-end development. Our pillar industries such as electronic information, advanced equipment manufacturing, and modern textile and garment have achieved a scale exceeding 1 trillion yuan. Leading enterprises like Contemporary Amperex Technology Co. Limited, Fuyao Glass Industry Group and Anta Sports are known worldwide. Second, we are advancing toward intelligent development. Smart transformation and digital conversion have equipped traditional industries with "digital wings," with the proportion of enterprises in the province with key business segments fully digitalized ranking third nationwide. Third, we are transitioning toward green development. New energy industries such as power batteries, new types of energy storage and offshore wind power have seen strong growth, with clean energy making up 63% of the province's installed capacity.

We have accelerated the building of an innovative Fujian, enhancing the driving force behind high-quality development. Today's Fujian is not only experiencing an "acceleration" in scientific and technological innovation, but an increasing number of innovative laboratory findings have been put into industrial production. Over the past decade, Fujian's total R&D investment has exceeded 630 billion yuan, seven provincial innovation laboratories have achieved breakthroughs in 150 core technologies, the cumulative transaction amount of technology contracts has exceeded 163.3 billion yuan, the number of national high-tech enterprises has surpassed 12,000, and the industrialization efficiency index for advanced and innovative technologies ranks third nationwide.

We have accelerated the building of a dynamic Fujian, expanding the scope for high-quality development. Today's Fujian sees its path of reform becoming broader, with significant progress in 10 key areas. Reforms in areas such as forestry, medical care and the system of specially dispatched technicians have been promoted nationwide. Fujian is further widening its door to the world, with the Maritime Silk Road core area and the BRICS innovation base playing an ever-greater effect as "window displays ." The free trade pilot zone has introduced 275 nationally pioneering measures, with the total volume of imports and exports growing at an average annual rate of 6.5%. The business environment is continuously improving, with our integrated government service capability ranking in the top tier nationwide. The number of business entities has increased from 1.4 million to 7.61 million, marking a 4.4-fold increase.

We have accelerated the building of a happy Fujian, where high-quality development is even more substantial. Today in Fujian, the lives of ordinary people have become richer and more fulfilling. In the past decade, 5.89 million new urban jobs have been created, and the per capita disposable income of residents has grown from 23,000 yuan to 45,000 yuan, ranking seventh nationwide. The preschool enrollment rate is 99.2%, the consolidation rate of compulsory education is 99.5%, and the gross enrollment rate for senior high school is 97.2%, all of which are among the highest in the country. The average life expectancy in the province has increased to 78.85 years.

We have expedited the construction of a beautiful Fujian, adding a touch of green for the region's high-quality development. In today's Fujian, the air is noticeably fresher, boasting an impressive 98.5% of days with excellent air quality in cities with subordinate districts. The concentration of PM2.5 stands at just 20 micrograms per cubic meter, which is 10 micrograms below the national average. Waters become clearer, with 99% of major rivers and 88.7% of nearshore seas achieving excellent water quality. The environment is cleaner, with the intensity of major pollutant emissions at 60% of the national average. The forest coverage rate is 65.12%, ranking first in the country for 45 consecutive years.

We have accelerated the construction of a safe Fujian, strengthening the foundation for the region's high-quality development. In today's Fujian, the exemplary practices of "reaching out to the grassroots" and "prompt action and practical work" have become well-established. The evaluation of public safety construction ranks among the top nationwide, maintaining a continuous public safety satisfaction rate of over 99%.

As we embark on the new journey, our focus remains steadfast on advancing the greatest political goal of promoting the Chinese path to modernization, firmly grasping the primary task of high-quality development, and adhering closely to the important "four requirements ," which encourage us to make greater progress in accelerating the modernization of the economic system, to better serve and integrate into the new development pattern, to make greater strides in exploring new ways to promote integrated development with Taiwan, and to achieve greater breakthroughs in creating a high-quality life. We will strive to transform the magnificent blueprint for the new Fujian outlined by General Secretary Xi Jinping into reality. In doing so, we will make new and greater contributions to the construction of a strong nation and the rejuvenation of the Chinese nation.

That's all from me. Thank you.

Chen Wenjun:

Thank you, Mr. Zhao. Now the floor is open for questions. Please state the name of the media outlet you work for before asking your questions. 

CCTV:

This year marks another significant milestone in comprehensively deepening reforms. Fujian has been at the forefront in reform and opening-up. As such, what new measures are you taking in deepening reforms and expanding opening-up this year? Thank you.

Zhao Long:

Thank you for your question. I will answer this. 

It is well-known that before reform and opening-up, Fujian province ranked eighth from bottom nationwide in terms of total economic output, suffering from weak foundations and insufficient development. However, after the initiation of the reform and opening-up policy, the central government granted us pioneering policies. The Fujian people, known for their indomitable spirit, diligence and courage, seized the momentum of reform and opening-up to transform the province from a relatively backward region into a thriving economic hub, where citizens enjoy prosperous lives and robust international engagements. Fujian has thus become a blessed land. As I mentioned earlier, the province's total economic output has surged to eighth place nationwide, and our per capita GDP ranks fourth in the country. We have also explored a path of high-quality development. Throughout this journey, innovative practices stemming from reform and opening-up have served as the most potent driving force. I would also like to share with you the story of the "Jinjiang Experience" here.

In the early 1980s, Jinjiang locals were known for their motto "Love to compete and will win, losing gracefully, and smiling in defeat." They kick-started their entrepreneurial endeavors with the help of the "three supplies and one compensation" trade modes, namely, processing with supplied materials, processing according to supplied samples, assembling with supplied parts, and compensation trade, with numerous enterprises emerging like mushrooms after rain. This spurred rapid development in the private sector economy. During his tenure in Fujian, General Secretary Xi Jinping visited Jinjiang seven times in six years, personally summarizing and refining the "Jinjiang Experience." This amalgamation of people's pioneering spirit with a systematic understanding of reform and specific deployment requirements became the "golden key" that guided Jinjiang and even the entire Fujian toward high-quality development. In today's Jinjiang, there is one entrepreneur for every seven individuals, and one enterprise for every 21 people. Although Jinjiang constitutes only 1/200 of the land area of Fujian, it contributes 1/16 of the province's total economic output, building itself into a renowned hub of brands at home and abroad. Many well-known brands, such as Anta, 361 Degrees and Xtep in sports, as well as Hengan Group , Panpan Foods and clothing firm Septwolves , all originate from Jinjiang. Without the reform and opening-up policies, Jinjiang's present-day achievements would have been unimaginable.

In Fujian, there are many similar stories, such as the calls for loosening restrictions and delegating power, the forestry reforms in Wuping, the healthcare reforms in Sanming, and the deployment of science and technology experts. It can be said that Fujian's current development and achievements are due to reform and opening-up, and its future prospects and hopes also rely on this policy. Moving forward, we will continue to adhere to the principles of uninterrupted reform and continued opening-up, consistently deepening the process of reform and opening-up. Specifically, we will focus on the following two aspects:

In terms of reform, we will focus on four main areas. First, we will address key issues in ideological understanding, promoting the spirit of pioneering and striving for success, and continuing to use the spirit, mindset and measures of reform to solve problems and drive development. Second, we will focus on key areas of reform, including market-oriented allocation of production factors, state-owned assets and enterprises, fiscal, taxation and financial systems, and the transformation of green resources. Third, we will grasp key links, particularly in balancing between the objectives and means of reform, between eradicating the old and establishing the new, between higher authorities and local development, and between the definition of what's right and what's wrong, continuously removing institutional barriers that hinder high-quality development, ensuring the government effectively balances the interests of multiple parties, and allowing the market to play its role with more vitality. Fourth, we will highlight Fujian's characteristics, continuously deepening reforms in areas such as healthcare, forestry and the deployment of science and technology experts, striving to offer more of Fujian's experiences to the rest of the country.

In terms of opening-up, we will focus on three areas. The first is going global and extending a warm welcome. We will better leverage domestic and international markets and resources and conduct the "Invest in Fujian" global investment attraction event. By intensifying efforts to attract foreign investment, we aim to expand further into markets in ASEAN, Europe, and emerging economies, making foreign capital and enterprises eager to come, stay and thrive. The second area involves proactively aligning with the country's major regional strategies. Our statistics show that Fujian's trade with the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area accounts for more than 55% of its inter-provincial trade. Given our proximity and connectivity to these two major economic regions, we will enhance coordination and collaboration with them. For example, we plan to improve efficient transportation networks, facilitate the sharing of innovative resources, optimize the mechanism for industrial alignment, and promote the integrated development of culture and tourism, striving to achieve seamless connectivity. The third area is leveraging the advantages of overseas Chinese. As 15.8 million overseas Chinese originate from Fujian, there is a saying: "Wherever there is sunlight and seawater, Fujian people are working hard." Since the launch of reform and opening-up in 1978, the vast number of Fujian people overseas have shown patriotism, love for their hometowns, dedication to success, integrity, and philanthropy, making indispensable contributions to the development and progress of Fujian. We will always remember and keep this in our hearts. Today, we will vigorously implement the Fujian Business Return Project, providing more convenience for overseas Fujian people to invest in Fujian and promoting the convergence of more resources and production factors in Fujian, thus achieving win-win development featuring mutual benefits.

That's all for my introduction. Thank you.

Cover News:

Fujian's private economy is well-developed. Just now, Mr. Zhao mentioned several private enterprises, such as CATL, Fuyao Glass Industry Group Co., Ltd ., and Anta. Could you share with us how Fujian has promoted the expansion and strengthening of private enterprises to advance the high-quality development of the private economy? Thank you.

Zhao Long:

Ms. Guo will answer this question. 

Guo Ningning:

Thank you for your interest in Fujian's private sector. Fujian, a major province for the private economy, sees its private enterprises contributing nearly 70% of GDP, over 70% of tax revenue, over 70% of scientific and technological advances, over 80% of jobs, and over 90% of business entities. As Mr. Zhao mentioned earlier, the growth and expansion of Fujian's private sector can be attributed to the "Jinjiang Experience." In recent years, being always mindful of the expectations on us, we have fully supported private enterprises in breaking new ground and dedicating themselves to success. Globally, one out of every three pieces of automotive glass and one out of every five pairs of trainers are manufactured in Fujian. Additionally, Fujian leads in the global market share of new energy vehicle power batteries.

Inheriting and carrying forward the "Jinjiang Experience," the CPC Fujian Provincial Committee and Fujian provincial government have always believed that private enterprises and entrepreneurs "belong to our own family", and have handled matters of these enterprises as "our own," have resolved their difficulties, and have made concrete efforts to benefit them. Last year, we pioneered the strategy of building Fujian's strength through the private economy in the new era and introduced the "1 plus N" policy measures. By doing so, we aim to devote the entire province's support to the dense forest of private enterprises and the economy so that they can thrive and continue to expand in Fujian's fertile soil. We have focused our efforts on three areas:

First, we have endeavored to cultivate top-tier market entities. We have supported private enterprises in adhering to their operations and core business without relenting, and specializing in areas such as the production of shoes, paper, tea, clothing, glass and batteries. We have also encouraged them to remain committed to innovation and technological advancements and to develop more century-old brands and boutique stores, ensuring that large enterprises grow stronger and small ones flourish.

Second, we have worked to provide first-class government services. We have adhered to the principle that government services should be available wherever private enterprises operate. Utilizing both online and offline channels, we have aggregated the entire province's government big data for sharing and have fully leveraged information technology platforms. Our goal has been to provide private enterprises with efficient and integrated services, making every effort to enable tasks to be accomplished efficiently and data to be collected just once. Over 83% of services can be accessed without a single visit. In Fujian, many cities and counties follow the four principles when serving private enterprises: arriving when needed, being available on demand, delivering on promises, and providing thoughtful services. Our aim is to build a convenient Fujian with the capacity, efficiency and favorable environment to handle matters, thus ensuring successful handling. 

Third, we have redoubled our efforts to create a top-class business environment. Adhering to the principles of market orientation, rule of law, and internationalization, we have supported fair competition among various market entities and ensured their efficient access to diverse production factors and resources. We have safeguarded the property rights of private enterprises and the rights and interests of private entrepreneurs in accordance with the law, thereby enhancing the internal momentum of these enterprises and unlocking the vitality of innovation, entrepreneurship and creation.

That's all for my introduction, thank you. 

National Business Daily:

Fujian's "Ningde Model" is a successful example of targeted poverty reduction and alleviation. However, there is still much work to be done to transition from poverty alleviation to rural revitalization. Could you share any new developments and measures regarding Fujian's endeavors toward all-around rural revitalization? Thank you.

Guo Ningning:

Thank you for your attention and concern for rural revitalization in Fujian. During the period When General Secretary Xi Jinping was working in Ningde, he led local people to fight against poverty and proposed a series of important concepts on poverty alleviation, such as "constant dropping wears away a stone ," "maintain a persistent and hard-working spirit ," "weak birds take flight early ," "implement the practices of going into communities to communicate the Party's lines and policies, carry out research and studies, address people's complaints, and conduct field work ," "increase confidence before relieving poverty," and "acquire knowledge and skills before relieving poverty." His book titled "Up and Out of Poverty " provides us with valuable ideological, spiritual wealth and practical achievements. In 2019, when replying to a letter from residents of Xiadang Township in Ningde, General Secretary Xi Jinping encouraged villagers to work continuously on a path of rural vitalization reflecting the characteristics of eastern Fujian province .

Always bearing in mind what General Secretary Xi Jinping has envisioned for the province, the CPC Fujian Provincial Committee and the provincial government made unremitting efforts to promote the comprehensive revitalization in five aspects: businesses, talent, culture, ecosystems, and organizations in the countryside, and work on a path of rural vitalization with distinctive local features. Last year, the per capita disposable income of rural residents in Fujian reached 27,000 yuan, ranking sixth in the country. This year, we plan to consistently implement the "Thousand Villages Demonstration and Ten Thousand Villages Prosperity" project. In the next five years, we will pool the capital of 2.6 billion yuan each year to build over 1,000 provincial-level demonstrative villages on rural revitalization and renovate more than 10,000 villages across the province. We will focus on the following three fields:

First, we will develop characteristic industries according to local conditions. We insist on our way to promote high-quality development on modern agriculture with local features, expand industrial chain, ascend value chain and endeavor to build an industrial system that focuses on agricultural modernization. . During the 14th Five-Year Plan period (2021-2025), we fully committed to constructing 30 key industrial parks for modern agriculture, 20 major industrial clusters with local advantages and characteristics, 100 towns featuring agriculture industries as well as 2,000 demonstrative villages with local specialties. At present, Fujian tea, Fujian fruits, Fujian fish, Fujian grain and Fujian mushrooms have already become famous. The reputation of "Funongyoupin", the regional public brand of green and good-quality agricultural products in Fujian, has improved continuously.

Second, we will fully advance the building of harmonious and beautiful villages. With a target of "ensuring modern standards of living in rural areas ," we will build and renovate what is needed and promote rural development in an orderly manner. At the beginning of this year, we issued a guidebook on local villages classifications and carried out a new round of classifying work in rural areas in Fujian. Next, we will formulate rural construction guideline and improve rural landscape through micro-renewal, building beautiful courtyards, beautiful micro landscape, beautiful small parks, beautiful countryside as well as beautiful leisure tourist spots, so as to make our villages comfortable for both living and travelling. 

Third, we will improve civilization standards in rural areas. We will strengthen Party organizations at village level, utilize the positive role of village regulations and folk conventions and improve the rural governance model that combines self-governance, rule of law and rule of virtue. We will fully maximize the role of resident first secretaries , technicians sent to local areas, rural revitalization instructors and rural financial assistants. More college graduates, skilled personnel, rural migrant workers and entrepreneurs will be encouraged to go back and work in villages and counties within Fujian. We will facilitate financial services in all villages and nurture a number of "new type of farmers" who have a good knowledge of agriculture, love our rural areas, and care about rural people. Nowadays, villages in Fujian are harmonious, beautiful and prosperous.

Southern Metropolis Daily:

New quality productive forces has emerged as a buzzword this year, which arouse wide attention from all industries. Local governments have taken actions to drive their future growth. As a major economically developed and coastal province in southeastern China, what will Fujian do to develop new quality productive forces? Thank you.

Zhao Long:

Thanks for your question and I will answer it. We all know that productivity is the fundamental driving force for the progress of human civilization and social development. In today's world, as a new round of sci-tech revolution and industrial transformation keeps advancing, the proposal of new quality productive forces provides a scientific guidance for upgrading traditional economic growth modes and promoting high-quality development.

It is especially urgent for Fujian to foster new quality productive forces. Due to some historical reasons, as you all know, innovation is a shortcoming for our province. But we can rely on sound foundations in the real economy and relatively complete industrial chain to foster new quality productive forces. More importantly, the people of Fujian are brave to work hard and have strong creativity, building a good atmosphere for innovation. We will grasp the scientific connotation and core meaning of new quality productive forces, unswervingly promoting high-quality development by fostering new quality productive forces. We will focus on the following five aspects.

First is sci-tech innovation. The distinguishing point of new quality productive forces is innovation. We will accelerate building Fujian into an innovation-driven province. This year, investment in research and development (R&D) are expected to grow at an average annual rate of more than 18%, and the number of national high-tech enterprises will exceed 13,000.

Second is modernization of industrial system. The key of new quality productive forces is good quality. We will holistically advance digital and intelligent transformation of traditional industries, foster strategic emerging industries, like information technology, new energy, new materials and biomedicine, and boost future-oriented industries including artificial intelligence and quantum technology in order to make traditional industries higher-end, smarter and more eco-friendly. Within the year, we will also implement national policies on large-scale equipment renewal, continue to launch over 1,000 projects on technological transformation and nurture more than 1,000 specialized and sophisticated enterprises that could produce novel and unique products.

Third is green and low-carbon development. New quality productive forces are inherently green ones. We will leverage Fujian's advantages in clean energy and green industries, and make great efforts to develop industries like power batteries, offshore wind power and new types of energy storage. We will strengthen the green service industry and establish a supply chain that is energy-saving, circular, green and low-carbon. As was previously mentioned, Fujian's installed capacity of clean energy accounts for 63% of its total, which is a significant advantage for us to achieve high-quality development. We will strive to achieve 100% utilization of clean and green electricity by manufacturing enterprises across the entire province as soon as possible.

Fourth is the provision of production factors. This primarily involves deepening the reform of market allocation of production factors and accelerating the flow efficiency of factors such as land, capital, technology and data. In this respect, our goal is to ensure that enterprises can quickly obtain the production factors they need and be able to transfer these products out quickly as they wish. For example, we are actively revitalizing land with inefficient functions and promoting the standardized construction of industrial parks. Last year, through the reform, the province added over 5 million square meters of standardized factory buildings. This year, we will step up efforts to a larger scale, and over 20 million square meters of new standardized factory buildings are expected to be constructed.

Fifth is to create a top-tier business environment. We will continuously improve administrative services and step up efforts in strengthening legal guarantees, enhancing the credit system, protecting intellectual property rights, and building a new type of cordial and clean relationship between government and business , in a bid to create a market-oriented, law-based and internationalized business environment. For example, in terms of administrative services, we will fully utilize the integrated law enforcement platform and promote reforms to improve the efficiency of data collection and matter handling to support the development of new quality productive forces, just like Ms. Guo Ningning introduced earlier.

That's all from me. Thank you!

Phoenix TV:

I am interested in the construction of a Digital Fujian . Could you please share with us the progress made in digital economy development, digital administrative services and digital society construction? And what's your plan to leverage advantages and seize opportunities to better serve high-quality development through digital empowerment? Thank you.

Meng Qian:

Thank you for your questions. The Fujian provincial government made the arrangement to build a Digital Fujian back in 2000. Since then, we have adhered to the principle of unified management and have compiled and implemented five-year Digital Fujian plans for five consecutive times, making Fujian province the earliest and only province that has consistently made such efforts. We have enhanced the construction of digital infrastructure and aggregated holistic administrative data from all levels across the province, enabling us to "have access to the province's data with one single click." We have strived to maintain digital economic development as the highland for the future, with the added value of the province's digital economy reaching 2.9 trillion yuan, accounting for 53.3% of GDP. We uphold the concept of "bringing digital technology closer to society, the people and daily life," and the reality of exploring the province with just a mobile phone is coming true. For example, the integrated law enforcement platform mentioned by Mr. Zhao Long earlier — the Min Law Enforcement Platform — covers over 4,000 law enforcement entities across the provincial, municipal, county and township levels. It coordinates and summarizes different functions and multiple matters, enabling "one visit for multiple inspections" and "one-time processing with mutual recognition across the province." This approach has improved the quality of inspection and law enforcement, reduced interference with enterprises, and facilitated online supervision and appeal of our law enforcement actions by enterprises. It can be said that digitalization has greatly enhanced the efficiency and effectiveness of our digital governance.

Next, our work will focus on five aspects. First, we will further implement the three-year rolling action plan for new infrastructure construction, strengthen the construction of digital infrastructure, solidify the hardware support for the Digital Fujian, and make digital computing, storage and transmission efficient. Second, we will strengthen system integration, better integrate and clarify the data across the province, and establish an integrated public data system for the whole province. At the same time, we will remove institutional barriers to enable data supply and make it accessible to enterprises and the public, thus expanding the breadth of data application. Third, we will continue to strengthen and expand digital industry clusters and make proactive plans for future industries. We will strive to create a new benchmark for digital transformation, promote new-type industrialization with digitization, and enhance the penetration of data in economic development. Fourth, we will promote the construction of a digital government, especially by optimizing the Min Law Enforcement Platform, the digital monitoring platform for business environment and other distinctive brands, and improve fine economic and social management, making our digital governance more precise. Finally, we will implement the digital service improvement project to enhance the functions of the provincial administrative service platform, especially by optimizing public services such as healthcare and elderly care, so that digital services better demonstrate a human touch.

Finally, I would like to take this opportunity to promote an upcoming event. Next month, our Fuzhou city will host the Digital China Summit for the seventh consecutive year. We welcome you to visit Fuzhou and join us in supporting the development of Digital Fujian and Digital China. Thank you!

Beijing Youth Daily:

The county economy in Fujian province is flourishing, and we are keen to explore this topic. We noticed that on the second day following the resumption of production after the Spring Festival holiday, Fujian organized an on-site promotion event for the development of key industrial chains in counties across the province. I would like to ask what progress has been made in Fujian regarding this work, and what specific measures are planned next? Thank you.

Zhao Long:

This question goes to Mr. Weng.

Weng Yuyao:

County governance ensures national stability. The county economy is a fundamental part of the national economy and a key pillar for realizing new industrialization, new urbanization and rural revitalization across the board. Over the years, we have focused on key industrial chains within counties and forged a path of county development with Fujian characteristics. Overall, there are several features:

First, the county economy has improved. Last year, there were 16 counties (cities, districts) in our province with a GDP exceeding 100 billion yuan, up by six compared to 2020. A total of 11 counties and districts were selected among the top 100 county economies nationwide, ranking seventh in the country. The GDP of all counties (cities, districts) in the province either exceeded or approached the significant milestone of 10 billion yuan. Despite constituting just one-fifth of the total counties and districts in the province, 17 major economic counties, such as Changle and Xiangan counties, contributed more than 40% of the province's GDP and over 60% of industrial revenue.

Second, industrial clusters with local features have expanded. Jinjiang has developed a complete industrial chain for footwear and apparel industry, establishing 12 listed companies and more than 20 well-known brands, making it a nationally renowned production base for men's wear and sports shoes. Ningde has been designated a national advanced manufacturing cluster for power battery production. Fu'an is recognized as the world's largest stainless steel production base.

Third, the competitiveness of regional brands has increased. Fuqing's automotive glass, Changle's textile fibers, Dehua's ceramic crafts, Guangze's Sunner chicken, Shaowu's fluorine chemicals, and Changting's rare earth processing technology have all become Fujian's hallmarks with substantial influence across the nation. These examples highlight the diversified industrial development across the counties.

Next, we will increase efforts to enhance key industrial chains within counties to elevate high-quality economic development in these areas.

First, we will tailor our policies to fit local conditions and offer category-specific guidance. We will improve the working mechanism by assigning dedicated teams to each industry, creating maps for key industrial chains, publishing white papers, and bolstering policy support. We plan to clearly define each county's leading industries, development priorities, and strategies, encouraging them to strengthen cooperation and complement each other with their unique strengths. We will also promote the integrated development of primary, secondary, and tertiary industries, urban and rural areas, and Fujian and Taiwan.

Second, we will rely on innovation to drive upgrading and transformation. We will implement policies like providing funding support through loan interest subsidies for technical transformation, promoting large-scale equipment upgrades and consumer goods trade-in, and accelerating enterprises' smart and digital transformation. Efforts will be made to select leading industrial teams and achieve breakthroughs in core technologies in key fields. Furthermore, we will deepen the standardized construction of industrial parks and intensify efforts to develop the circular economy. These efforts aim to push the high-end, smart and green development of industries.

Third, we will cultivate leading enterprises and drive development in stages. We will identify leading enterprises in the industrial chain, encourage and support enterprises to grow stronger and bigger, and enhance their leading role in driving the development of industrial chains. For example, Contemporary Amperex Technology Co., Ltd. (CATL) has attracted over 80 upstream and downstream enterprises to settle in Jiaocheng district. This ensures that more than 85% of raw materials for lithium-ion battery production are sourced and purchased locally. In addition, we will ramp up efforts to develop specialized and sophisticated enterprises that produce novel and unique products, high-tech enterprises, and single-product specialists . These initiatives are geared towards cultivating new quality productive forces and enhancing the momentum of industrial development. Thank you!

China News Service:

Fujian has promoted the community-based care project for the elderly by providing them meal services and holding lectures. I've heard that senior citizens can dine, learn and entertain themselves at these venues, and that the concept has become very popular. Could you please provide specific details? Additionally, what other measures has Fujian implemented to improve people's well-being? Thank you.

Zhao Long:

Thank you for your interest in Fujian. I will answer this question. In his 2024 New Year message, General Secretary Xi Jinping said, "Our goal is both inspiring and simple. Ultimately, it is about delivering a better life for the people. " On the eve of the Spring Festival in 2023, General Secretary Xi Jinping, talking via video link with elderly people at a social welfare home in Fuzhou, stated, "Whether a society is a happy one or not, it is very important to see whether the elderly are enjoying a happy life. "

China's aging population is on the rise. In Fujian, individuals aged 60 or above account for 19.3% of the province's total population, which means that Fujian has transitioned into a moderately aging society. In response, we have taken a series of measures, such as establishing "canteens and schools for elderly people." Launched in 2019, the program aims to integrate community resources and expand services to address challenges faced by the elderly, such as difficulties in buying groceries, cooking and having meals. Fujian is now home to over 3,000 community canteens for the elderly, providing service for more than 150,000 people daily. This initiative has been included in the annual program for the benefit of people by the provincial committee and provincial government. Some canteens have expanded their services beyond meals to include activities such as calligraphy practice, music appreciation, dance classes, social gatherings, conversation and card games. These recreational activities are enjoyed by the elderly, contributing to their happiness, health and well-being in their later years.

Next, we will continue to focus on ensuring and improving people's livelihoods, addressing not only the question of quantity but also reinforcing the quality. We aim to transform people's aspirations for a better life into reality.

First, we will prioritize employment for key groups. This year, we will strive to achieve an increase of over 500,000 jobs within urban areas. Currently, our province faces significant structural contradictions in employment, particularly in the shortage of skilled professionals. To address this issue, we will collaborate with universities and enterprises, enhance supportive policies and strengthen vocational skills training. This will help meet the demands for high-quality talent in enterprises and cultivate a larger pool of highly skilled professionals.

Second, we will ensure to provide education that is satisfactory to the people. We will promote the expansion and improvement of basic education. This year, as part of our practical initiatives, we have planned to renovate and expand 150 public kindergartens and create an additional 40,000 public primary and secondary school slots. This means that more high-quality schools close to people's homes. Furthermore, we will further enhance vocational education and strengthen higher education institutions.

Third, we will promote the decentralization of high-quality medical resources to the local level. In recent years, we have supplemented and trained over 7,000 local medical personnel in counties and villages. We will continue to enhance the capacity of primary healthcare services, establish eight national regional medical centers and 13 provincial-level regional medical centers, and strengthen the pairing between tertiary hospitals at both the provincial and municipal levels and 25 relatively weaker county-level hospitals. Additionally, we will deepen the implementation of policies such as requiring medical personnel to serve at the grassroots level before they can be promoted to professional titles, aiming to ensure that small hospitals have more competent doctors and better facilities. Our goal is to address common and prevalent diseases in cities and counties and to provide solutions for minor ailments in rural areas.

In conclusion, when it comes to people's livelihoods, there are no small matters and there are numerous aspects to consider. As long as it is a matter that concerns the common people, we will spare no effort in handling the concerns and strive to achieve their satisfaction. That's all I have to say for now. Thank you all.

Shenzhen TV Zhi News: 

Last year, the central government specifically issued opinions to support the construction of a demonstration zone for cross-strait integrated development in Fujian. Could you please provide an update on the current progress? What are the next steps to effectively utilize the policies and actively explore new paths for cross-strait integration and development? Thank you.

Guo Ningning：

Thank you for your question. After the central government issued its policies, we convened the 5th Plenary Session of the 11th Provincial Party Committee to conduct specialized discussions and arrangements. We reviewed and approved the implementation guidelines for carrying out and implementing the central policies, putting forward 15 key tasks in four areas. We have taken the central government's "blueprint" and transformed it into concrete "construction plans" tailored specifically for the province of Fujian.

We are focusing on promoting integration through connectivity, benefits and affinity, and accelerating the construction of demonstration zones for cross-strait integration and development.

In terms of promoting integration through connectivity, we have vigorously promoted the resumption of maritime and air routes between Fujian Province and Kinmen, Matsu and other areas. Maritime routes have been restored between Fuzhou Mawei District, Lianjiang to Matsu and Xiamen and Quanzhou to Kinmen. Air routes have also resumed between Fuzhou to Taipei as well as Fuzhou to Kaohsiung, with a significant increase in passenger traffic. Moreover, Fuzhou, Xiamen and Pingtan have introduced over 2,000 rent-free and public rental housing for Taiwan compatriots. Now, it is very convenient for Taiwan compatriots to travel to Fujian. they can live, work and start businesses in Fujian with a sense of security and comfort.

In terms of promoting integration through benefits, we have vigorously implemented equal treatment, allowing Taiwan compatriots and enterprises in Fujian to enjoy comprehensive development opportunities. For example, Taiwan brands such as "Cheng Shin Tire（CST） " and "Taizu" have joined the family of well-established mainland enterprises and have shown remarkable progress. Last year, more than 2,100 new Taiwan-funded enterprises were established in Fujian with a high growth rate. The actual utilization of investment from Taiwan exceeded 7 billion yuan, more than doubling from the previous year, leading the mainland in both aspects. The cumulative trade volume between Fujian and Taiwan has exceeded 1.5 trillion yuan.

In terms of promoting integration through affinity, we have successfully organized key events such as the Cross-Strait Forum and the Cross-Strait Youth Festival. In 2023, a total of 573,000 Taiwan compatriots visited Fujian. Fujian is also home to 26 national-level cross-strait exchange bases, ranking first in mainland China. The compatriots from both sides of the strait are getting closer and closer, fostering a stronger sense of kinship.

Next, we will focus on four aspects to accelerate the exploration of new paths for integrated development across the Taiwan Strait. First, we will promote social integration, and further expand the application scenarios of residence permits for Taiwan residents, allowing Taiwan compatriots in Fujian to enjoy equal treatment in such areas as medical care, housing, elderly care and education, so that they can rest assured that they can come, integrate and develop well. Second, we will take further steps to promote economic integration. We will specifically plan and create more key projects for the integrated development between Fujian and Taiwan for Taiwanese companies and entrepreneurs. We have already introduced a series of supporting and encouraging policies that provide comprehensive support, whole process guarantees and full cycle services, so as to provide more and better development opportunities for Taiwan compatriots and Taiwanese companies in Fujian. This will bring benefits to people on both sides of the Taiwan Strait and improve their lives. Third, we will make significant efforts to promote emotional integration. More than 80% of Taiwan compatriots have ancestry in Fujian. We will further enhance the connections between relatives on both sides of the Taiwan Strait and foster connections between villages with the same name. We will invite more Taiwan compatriots who have never visited the mainland for family visits, sightseeing and exchanges in Fujian. We will also invite them to personally experience the new development, changes and achievements on the mainland and in Fujian. They can feel the sense that the "two sides of the Taiwan Strait are one family, Fujian and Taiwan are close," and feel connected in blood and in heart. Fourth, we will make great efforts to promote regional integration. We are taking the lead in promoting integration with Taiwan in cities such as Fuzhou, Xiamen and Pingtan. On this basis, we will guide other regions in the province to find their positioning and coordinate efforts, and achieve comprehensive integration and development with Taiwan across the entire Fujian province.

That's all from me. Thank you.

Chen Wenjun:

The last two questions, please.

Zhonghongwang.com:

We have learned that Fujian province has introduced a series of measures in the first quarter, including a focus on making a stable and good start to the year. Could you briefly introduce the progress Fujian has made in expanding investment and stabilizing growth this year? Thank you.

Zhao Long:

I'd like to ask Mr. Meng to answer this question.

Meng Qian:

Thank you for your question. As you're all aware, in the first two months of this year, China's economy has kept a good momentum of  steady growth. The situation in Fujian is the same as the whole country. According to the data, our situation is even more optimistic. The first quarter has just ended, and the data is still being compiled and has not yet been released. However, we can feel the warmth of Fujian's economic spring from the roaring machinery, busy traffic and bustling crowds. Here is a set of objective figures to share with you. In the first quarter, the province's industrial electricity consumption increased by 13% year on year, highway traffic increased by 9%, offline consumption increased by 9.1%, hotel occupancy increased by 9.5% and tourist flow in scenic areas increased by 18.2%. These are all double-digit or close to double-digit growth rates, reflecting the basic situation of industries such as manufacturing, transportation, commerce and tourism. I believe that those of you who are familiar with the economic work will sense the confidence of Fujian's economy.

Of course, the data also reveals some problems, primarily in certain traditional industries that are still facing difficulties, and the transformation of the real estate industry has not been completed. These are "growing pains," indicating that our shift from old to new growth drivers is still a work in progress.

Next, we will continue to adhere to the general tone of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We will give full play to Fujian's advantages in areas such as digital technology, marine, ecology, private economy, reform and opening-up, and overseas Chinese. We will strive to implement major strategies such as the innovation-driven development strategy , the strategy of building Fujian into a strong province for private economy in the new era, and the strategy of promoting regional coordinated development. Furthermore, we will accelerate the construction of a demonstration zone for cross-Strait integrated development and achieve high-quality development across the entire province. Specifically, we will address three aspects:

First, we will pursue development for the people and ensure smooth economic circulation . The purpose of economic development is to better meet people's aspirations for a better life . Investment and consumption serve as a means to drive economic growth, but their fundamental purpose is to meet people's livelihood needs. With investment, people can travel on faster high-speed trains and go to better hospitals for medical treatment. With consumption, people are able to afford the latest Huawei smartphone and enjoy better travel services. The key now is to ensure smooth economic circulation by implementing policies that synergize efforts in stabilizing employment, increasing income, expanding investment, promoting consumption and improving people's livelihoods. In that way, we will be able to overcome bottlenecks in economic operations, address pain points in business development, and resolve issues that people are concerned about.

Second, we will focus on innovation-driven development and develop new quality productive forces. We are working on developing the digital economy, marine economy, green economy and cultural tourism economy, continuously creating new growth drivers and development advantages. In this regard, private enterprises in Fujian have great potential. We have a private enterprise called Huafeng (Huafeng Textile Group). They built a high-level team from all over the world and developed new technology, producing a sportswear garment from a dozen or so mineral water bottles. The company has been favored by many international brands. Our goal is to help enterprises like these grow and thrive.

Third, we will deepen reforms and enhance the driving forces for development. Mr. Zhao offered a detailed introduction to our measures to comprehensively deepen reforms and expand openness. I'll now elaborate on two specific initiatives. One is further enhancing efforts to create a superior business environment this year. The key is to allow business entities to fully exert their roles and functions and let them fully engage in the entire process of formulating policies, resolving issues, and evaluating policies, thereby enhancing the sense of gain among enterprises. The other is to further promote the development of the core region of the 21st Century Maritime Silk Road. On the ninth day of the first lunar month, which falls on Feb. 18 this year, we initiated the construction of an ethylene project in Gulei, Zhangzhou, a collaboration between China and Saudi Arabia with a total investment of 44.8 billion yuan, making it the largest foreign-invested project in Fujian to date. This is just a glimpse of the achievements made in building the core region of the 21st Century Maritime Silk Road. I believe that through our collective efforts, Fujian's economy will continue to improve.

Thank you all! 

Hong Kong Bauhinia Magazine: 

Fujian is the first national ecological civilization pilot zone. It is a "green" province. Could you share with us Fujian's practices and measures taken to preserve its ecology and environment? Thank you.

Zhao Long:

Thanks for your appreciation of Fujian's eco-environment. I will answer this question. 

This last question concerns the eco-environment, which is an important issue and an advantage of Fujian. General Secretary Xi Jinping once pointed out that ecological resources are Fujian's most valuable assets, and ecological advantages are its best competitive edge, which make it crucial for the province to exert the greatest efforts to advance ecological civilization. Fujian takes great pride in its eco-environment and feels the weight of its responsibilities for ecological conservation. During his tenure in Fujian, the general secretary laid out a visionary strategic plan for building Fujian into an ecological province. Major media outlets recently reported that when working in Fujian, the general secretary advanced the ecological transformation of Yundang Lake in Xiamen, inland waterways in Fuzhou, and Mulanxi River in Putian, and promoted soil erosion control in Changting county, among many other important practices, and helped the province achieve remarkable ecological progress. Today, Fujian boasts clear blue skies and a poetic land of greenery. It's truly a natural gallery and a paradise on earth.

To advance human civilization, we must pursue ecological progress. We know deeply that a sound ecosystem is fundamental to a thriving civilization. We must respect nature, abide by its laws, and protect it. We understand that mountains, waters, forests, farmlands, lakes, grasslands, and deserts form a community of life whose ecosystems must be conserved systematically to promote ecological progress. We also appreciate that lush mountains and lucid waters are invaluable assets. A superb eco-environment is a public good that benefits all and offers the most equally accessible form of welfare. People are happy to live amid green mountains and clear waters, while these natural assets can be transformed into social and economic wealth.

While doing our work, we gained a deep understanding that the eco-environment is of great importance and is extremely fragile, so we have to protect it like we protect our eyes, preserve the mountains, waters, and vegetation across Fujian, and always take pride in our lush mountains and lucid waters. What we do mainly involves three things. First, we will promote green and low-carbon development. We will continue accelerating the green transformation of the industrial structure, energy structure, transportation modes, and urban-rural development. Green lifestyles involving consumption, housing and transportation will be strongly encouraged. We will promote the recycling of resources, striving to create a resource-saving and environmentally-friendly society. Second, we will make efforts to keep our skies blue, waters clear, and lands clean. Last year, the Central Environmental Protection Inspection Team carried out a thorough inspection of Fujian, discovering unsolved problems in pollution prevention and control. Prompted by inspection and rectification requirements, we will deepen environmental improvement and defuse hidden pollution risks. We are currently working on formulating a plan for this purpose. After rectification, Fujian's eco-environment will experience another significant improvement. We will be able to create a beautiful homeland with amazing sights of blue skies and white clouds, starry nights, clear waters and green shores, fish swimming merrily, azure seas and silver beaches, dolphins chasing waves, a picturesque countryside and more livable environment. Third, we will make more efforts to protect and restore the eco-environment and optimize territorial space development pattern. Fujian has proposed creating beautiful cities, villages, rivers, lakes and bays, as well as green, low-carbon industrial zones. We will continue to take a holistic and systematic approach to conserving and improving mountain, water, forest, farmland, grassland, and sandy land ecosystems in the Minjiang River Basin and Jiulong River Basin. These two rivers are the mother rivers of Fujian, and we must preserve them well to better benefit the people. Also, we will improve the nature reserve system centering around the Wuyishan National Park to improve the diversity, stability and sustainability of the ecosystem.

Fujian's mountains and waters have taken on a new look. An excellent eco-environment and profound culture make up the stunning beauty of Fujian and make it an attractive place for refreshing and enjoyable experiences. We earnestly welcome people from home and abroad to visit Fujian and explore the exquisite mountains and waters, the vast sea and clear, blue sky, as well as our ancient red-brick houses and sacred revolutionary sites. "Refreshing Fujian" will undoubtedly live up to your expectations of a distant and poetic land. This is my final answer. Thank you, everyone!

Chen Wenjun:

Thank you, Mr. Zhao. Thank you, all speakers and journalists. Today's press conference concludes now. Goodbye!

Translated and edited by Zhang Rui, Wang Wei, Qin Qi, Liu Sitong, Xu Xiaoxuan, Wang Yanfang, Lin Liyao, Ma Yujia, Wang Ziteng, Cui Can, Liu Caiyi, Wang Qian, Yan Xiaoqing, Li Huiru, Zhang Junmian, David Ball, Rochelle Beiersdorfer and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers: 

Mr. Zhang Gong, deputy secretary of the Communist Party of China (CPC) Tianjin Municipal Committee and mayor of Tianjin 

Mr. Liu Guiping, a member of the Standing Committee of the CPC Tianjin Municipal Committee and executive vice mayor of Tianjin

Ms. Shen Lei, a member of the Standing Committee of the CPC Tianjin Municipal Committee and director of the Publicity Department of the CPC Tianjin Municipal Committee

Mr. Dai Yongkang, director of the Tianjin Development and Reform Commission

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 3, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding the sixth briefing in the series "Promoting High-Quality Development." We have invited Mr. Zhang Gong, deputy secretary of the Communist Party of China (CPC) Tianjin Municipal Committee and mayor of Tianjin, to brief you on striving for excellence in four key areas and contributing Tianjin's efforts to advance Chinese modernization, and to take your questions. Also present today are Mr. Liu Guiping, a member of the Standing Committee of the CPC Tianjin Municipal Committee and executive vice mayor of Tianjin; Ms. Shen Lei, a member of the Standing Committee of the CPC Tianjin Municipal Committee and director of the Publicity Department of the CPC Tianjin Municipal Committee; and Mr. Dai Yongkang, director of the Tianjin Development and Reform Commission.

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

Zhang Gong:

Ladies and gentlemen, good morning. It's a great pleasure to have this opportunity to brief you on Tianjin's development. First of all, I'd like to express my heartfelt gratitude to you for your long-term support for and interest in Tianjin's work.

Ahead of last Spring Festival, General Secretary Xi Jinping visited Tianjin and guided relevant work, delivering an important speech where he put forward the crucial requirement of striving for excellence in four key areas (namely fostering new quality productive forces, further deepening reform and opening up across the board, promoting cultural inheritance, and making urban governance more modernized). This has pointed out the direction and injected strong momentum for Tianjin to pursue high-quality development on the new journey.

Over the past year, focusing on the central task of economic growth and the top priority of high-quality development, we have further implemented 10 initiatives, such as striving for solid progress in the coordinated development of the Beijing-Tianjin-Hebei region, supporting and guiding the high-quality development of the Binhai New Area, promoting port-industry-city integrated development, and invigorating the city through science, education and workforce. These efforts have yielded positive results in several aspects:

First, stability and effectiveness have been further improved. Last year, Tianjin's GDP increased by 4.3%, with general public budget revenue rising by 9.8% and tax revenue by 17.2%. In the first quarter of this year, the general public budget revenue grew by 7.3%. Second, momentum for progress has been further accumulated. Accelerated advancement was observed in several key projects such as the second final assembly line of the Airbus A320 series aircrafts , the 12-inch production line of the Semiconductor Manufacturing International Corporation (SMIC), the 1.2 million-ton ethylene program of INEOS and Sinopec , and Novo Nordisk's capacity expansion. Last year, the number of market entities in Tianjin increased by 7.9%, and Tianjin Port's container throughput reached 22.18 million twenty-foot equivalent units (TEUs). In the first quarter of this year, container throughput increased by 7.2%. R&D spending across Tianjin has reached 3.49% of GDP, and the Tiankai Higher Education Innovation Park is thriving, fostering an increasingly vibrant atmosphere for innovation and entrepreneurship. Third, positive expectations have become more evident. A number of centrally administered state-owned enterprises (SOEs), financial institutions, leading private businesses, and multinational corporations have actively engaged in cooperation discussions in Tianjin. An array of important exhibitions and competitions have been held in the city, such as the 14th Summer Davos Forum, the World Intelligence Congress, the 2023 Tianjin International Shipping Industry Expo , the China Tourism Industry Exposition , and the 2023 China International College Students' Innovation Competition. In Tianjin, visitors can admire the beautiful scenery along the Haihe River, watch the sunrise at Dongjiang Port, enjoy the sea of blossoms at Wudadao historical urban area (also known as the Five Great Avenues), indulge in shopping at the Florentia Village outlet mall, and savor delicious local cuisines at the Northwest Corner. "Tianjin Flavor" tourism has further magnified the city's vitality and charm. The per capita disposable income of Tianjin residents exceeded 50,000 yuan (around $6,912) last year, with public services becoming more balanced and accessible.  

Moving forward, we will bear in mind the expectations of General Secretary Xi Jinping, anchor ourselves to the goal of building a modern socialist metropolis in all respects, and strive to pursue Chinese modernization and high-quality development, thereby consistently showcasing Tianjin's new accomplishments. The main aspects of our work are:

First, we will focus on urban integration and continue striving to make solid progress in the integrated development of the Beijing-Tianjin-Hebei region. We will deepen institutional innovation for coordinated development, and constantly improve joint contribution and sharing of public and market-oriented services. We will proactively serve the relieving of Beijing of functions non-essential to its role as China's capital, and place greater emphasis on allocating and attracting market-oriented resources. In addition, we will leverage the role of the Binhai New Area as a strategic cooperation function zone, achieving its coordinated development with Xiong'an New Area and Beijing municipal administrative center while highlighting their own distinct strengths . By increasing synergy in scientific and technological (sci-tech) innovation and integration of industrial systems, we aim to apply more sci-tech advances and make industrial support more efficient within the Beijing-Tianjin-Hebei region. We will continuously enhance the region's service efficiency in railways and waterways, so as to make personnel exchanges more convenient as well as internal and external logistics circulation more efficient.

Second, we will concentrate on sci-tech innovation and industrial rejuvenation, and strive for excellence in fostering new quality productive forces. We will work to nurture the function of cities in promoting sci-tech innovation and applying the advancements, and build a regional center for application of sci-tech advances based on relevant resources and manufacturing supporting. We will deepen collaboration between Tiankai Higher Education Innovation Park and various innovative resources in the capital, strengthen the cultivation of a market-oriented sci-tech service system and policy support, thus moving more sci-tech advances from labs to production lines in and out the Beijing-Tianjin-Hebei region. Moreover, we will actively attract national strategic sci-tech forces to establish a presence in Tianjin, facilitate the transformation and upgrading of traditional industries according to local conditions, and capitalize on strengths and avoid weaknesses to foster and expand emerging industries, thus constructing a modern industrial system in an orderly manner. 

Third, we will center on optimizing the business environment and institutional opening-up, and strive for excellence in further deepening reform and opening-up across the board. We will unswervingly consolidate and develop the public sector, and to encourage, support, and guide development of the non-public sector, promote the reform and development of SOEs on a categorized basis, and build up the private sector. With the aim of better serving market entities, we will introduce a series of scenarios to efficiently handle matters. To energize the vitality of sci-tech innovation personnel and enterprises, we will upgrade the policies for Tiankai Higher Education Innovation Park. Leveraging the advantages of ports, comprehensive bonded zones, pilot free trade zones and the comprehensive pilot program for service sector opening, we will intensify exploratory efforts in the pilot program for institutional opening-up in such fields as sci-tech finance, "bonded plus," financial leasing, shipping services, exhibition services and cross-border data flows. 

Fourth, we will spotlight protection and utilization, and yield remarkable results in promoting cultural preservation and development. We will steadfastly follow the principles of cultivating culture, enriching people's lives through culture, enhancing the city's cultural vibrancy, and driving industrial development with cultural initiatives. We will improve the public cultural service system to better meet citizens' needs, promote the integration of culture and tourism, and accelerate the construction of distinctive tourist destinations, further enhancing the vitality and charm of the city.

Fifth, we will focus on ensuring residents' well-being and promoting urban governance modernization. We will prioritize ensuring residents enjoy peace and contentment in work and life. Based on the characteristics of Tianjin being a super-large city, we will expedite the development of refined management, smart governance, and participatory governance, and pursue a content-rich development path. We are committed to steadily promoting urban renewal, constantly increasing the efficiency of urban operational services, and enhancing the city's overall safety.

The development of Tianjin relies on the concern and support of friends from various sectors. We sincerely invite you to visit Tianjin, experience the optimism and openness of Tianjin's people, and feel the vigorous vitality of Tianjin's development.

That's all for my introduction. My colleagues and I would like to answer your questions. Thank you!

Chen Wenjun:

Thank you, Mr. Zhang. Now, the floor is open for questions. Please identify the news agency you represent before asking questions.

Hong Kong Bauhinia Magazine:

This year marks the 10th anniversary of implementing the coordinated development of the Beijing-Tianjin-Hebei region, a major national strategy. Can you elaborate on Tianjin's achievements in deepening and solidifying the coordinated development of the Beijing-Tianjin-Hebei region? What measures will Tianjin take to promote the coordinated development of Beijing and Tianjin, as well as further expand the breadth and depth of cooperation among the three regions? Thank you.

Zhang Gong:

Thank you for your questions. I will address them now. This year celebrates the 10th anniversary of the Beijing-Tianjin-Hebei coordinated development strategy. Over the past decade, Tianjin has focused on implementing this significant national regional development strategy, actively pursued integrated development to enhance Tianjin's growth, and significantly advanced regional coordination and integrated development with Beijing.

In terms of achievements, consensus on coordinated development among the three regions has deepened over the past decade, not only among government departments but also in enterprises and markets. Meanwhile, integration between Beijing and Tianjin has progressively strengthened, with high-speed rail and expressways drastically reducing travel times between the regions and facilitating the seamless flow of people. This mobility has spurred cooperation across various aspects. Currently, about 70,000 to 80,000 people travel between Beijing and Tianjin daily via intercity high-speed railways. The number of people living in Tianjin who are working, conducting business, or spending weekends in Beijing for leisure and vacation is on the rise. Such exchanges and interactions are bound to create new opportunities for cooperation at various levels.

Practical cooperation across multiple fields continues to accumulate fruitful results. Economically, market-oriented cooperation is expanding in various aspects, such as industrial complementarity, logistics collaboration, service expansion, and energy security. Many central state-owned enterprises like CNOOC, Sinopec, China Electronics Technology Group Corporation, China Unicom, and CHN Energy Investment Group have expanded their presence in Tianjin. In terms of technological innovation collaboration, the interaction and empowerment among parks, enterprises, and technology service providers across Tianjin, Beijing, and Hebei are continuously increasing. Examples include the Tiankai Higher Education Innovation Park and Zhongguancun. Entities like the Chinese Academy of Medical Sciences, 360, Lenovo, and Zhongguancun Hardware Space Group Co., Ltd. are expanding their cooperative footprint in Tianjin. Regarding ecological governance, collaborative efforts in joint prevention, construction, and governance among the three regions are deepening in standards and measures. In terms of public services, measures like the direct settlement of medical expenses across the three regions, enhanced cooperation in public education, and the integration of social security cards have significantly eased the lives of residents in these areas and furthered city integration efforts.

Moving forward, we will make continuous and pragmatic efforts to expand cooperation among the three regions. We will proactively support relieving Beijing of functions non-essential to its role as China's capital, the development of Xiong'an New Area, and the construction of Beijing's sub-center, primarily in the following aspects:

First, our efforts will center on the development of city clusters, with an emphasis on enhancing soft connectivity through public services. We aim to boost cooperation in areas including education, healthcare, social insurance, elder care, culture, commerce, tourism, and transportation. By advocating for uniform standards in similar practices, we will make commuting and daily life more convenient for people in the three regions.

Second, in the coordination of scientific and technological innovation and the integration of industrial development, greater emphasis will be placed on nurturing the development of the technology service industry. We will leverage the unique role of market-oriented technology services in the application of technological advances and facilitate extensive collaboration within the technology service industry.

Third, in the process of actively helping relieve Beijing of functions non-essential to its role as China's capital, attention will be paid to market-based allocation of resources and factors for talent introduction and cultivation. The government's macro planning guidance has been very clear and deeply ingrained in people's minds. Next, special attention will be paid to the follow-up of market-oriented resources. In particular, we will rely on Tianjin's scientific and educational resources, the policy space of the Binhai New Area, and Tianjin's own advantages in terms of public services and comprehensive costs. Efforts will be continuously made in market-oriented resource allocation, building mechanisms for sharing benefits, incentivizing the application of advances, and establishing market-oriented industrial supporting platforms.

Fourth, we will leverage the role of Tianjin Port as a shipping hub in northern China. In the process of advancing the integrated development of ports, industries, and cities, we will focus on cultivating and improving shipping services and functions, expanding domestic and international shipping routes compatible with regional industries, and optimizing smart custom clearance capabilities. We will make good use of policies in comprehensive bonded zones and free trade pilot zones, and enhance institutional openness.

The 10th anniversary marks a new starting point. We will take more pragmatic and precise measures, continuously seek breakthroughs in mechanisms, platforms, paths, and shared benefits, and better expand the depth and breadth of service to regional development. Thank you.

CCTV:

I just heard Mr. Zhang mention ten initiatives during his introduction, so I would like to ask you to elaborate on what the city has done so far and the highlights of these initiatives. Additionally, in which key areas and critical links will you introduce innovative measures this year? Thank you.

Zhang Gong:

Thank you for your attention to Tianjin's ten initiatives. Now, I would like to invite Mr. Liu to answer these questions.

Liu Guiping:

Thank you for your questions. Since the start of last year, Tianjin has been focusing on key areas critical to its long-term development. In line with the guiding principles of the report to the 20th CPC National Congress, the city has undertaken 10 initiatives to promote high-quality development, achieving initial success. Significant progress has been made in promoting the coordinated development of the Beijing-Tianjin-Hebei region, with over 40 central government enterprises’ second level or third level subsidiary companies establishing themselves in Tianjin through market-based approaches. Industry and information technology departments across the Beijing-Tianjin-Hebei region have jointly released industrial chain maps in six key areas. Furthermore, the Tianjin-Daxing Airport Intercity Railway was officially launched on Dec. 28, 2023, reducing travel time between Tianjin West Railway Station and Beijing Daxing International Airport to just 40 minutes. Tianjin Binhai New Area has given full play to its role in supporting and guiding the city’s high-quality development. Last year, the area's GDP saw a 4.6% increase, surpassing Tianjin's average growth rate. The State Council has also approved the establishment of the Tianjin Lingang Comprehensive Bonded Zone. Tianjin's cluster of marine engineering equipment industries has emerged as the important one of its kind in China. Remarkable progress has been made in invigorating Tianjin through science and education and in developing a quality workforce. The CPC Tianjin Municipal Committee and Tianjin municipal government have planned the development of Tiankai Higher Education Innovation Park in a holistic manner. So far, the number of registered businesses has exceeded 1,500. Tianjin's R&D spending accounts for 3.49% of its GDP, and the ratio ranks third in the country. The metropolis was ranked 18th globally in the Nature Index Science Cities 2023. The integrated development of our port, industry, and city has enhanced the supporting capacity of the port, accelerated the development of port-related industries, and injected fresh vitality into the port city. Mr. Zhang just mentioned that last year, container throughput at Tianjin Port reached 22.18 million TEUs, an increase of 5.5% year on year, ranking eighth in the world. We have sped up the high-quality development of manufacturing with intensified efforts. Twelve well-designed key industrial chains continued to grow. Their value-added accounted for 79.8% of that in industrial enterprises with annual revenue of 20 million yuan or more from their main business operations. The action plan for downtown renewal and upgrading has been implemented effectively and in an orderly manner. Work has begun on 14 urban renewal projects implemented last year with an investment of 9.1 billion yuan, covering a total area of 10 square kilometers. We have advanced all-around rural revitalization. Last year, despite the major flood unseen in Tianjin in more than 60 years, our grain output has remained steady at over 2 million metric tons for eight consecutive years. The number of new types of agricultural business entities exceeded 20,000. Thirty new demonstration villages on rural revitalization have been built. New progress has been achieved in green and low-carbon development. The annual average PM2.5 concentrations in Tianjin met the national target. Energy consumption per unit of GDP dropped by at least 10% from 2020. We have enabled people to enjoy a higher quality of life. The surveyed urban unemployment rate stood at 5.4%. The per capita disposable income of residents increased by 4.7%. The urban-rural per capita disposable income ratio was 1.79, the lowest in China. This means the income gap between urban and rural residents in Tianjin is the narrowest throughout the country, laying a solid foundation for pursuing common prosperity and integrated urban-rural development. We have improved the quality and effectiveness of our efforts in guiding community-level governance through Party building, so that primary-level organizations are better able to carry out their work.

Frankly speaking, it is difficult to elaborate on all the data and practices related to Tianjin's ten initiatives in such a short time. I can only offer you a brief introduction. If you want to learn more about our achievements, we sincerely welcome you to visit Tianjin, as the mayor suggested. Moving forward, we will introduce innovative measures focusing on five key aspects:

First, we will focus on major national strategies. We will continue to explore the coordinated development of the Beijing-Tianjin-Hebei region and the urban integration of Beijing and Tianjin municipalities. By enhancing innovation in systems and mechanisms, we will make coordinated efforts to promote the development of the Beijing-Tianjin-Hebei region as a collaborative innovation community.

Second, we will focus on developing new quality productive forces. After nearly a year since its launch, we plan to introduce version 2.0 of the support policies for the Tiankai Higher Education Innovation Park. Additionally, we will devise an implementation plan for the high-quality development of modern service industries to encourage deeper integration of advanced manufacturing and modern services.

Third, we will focus on fully utilizing our city's potential. We will implement a plan to put idle assets to good use through a multi-tiered and categorized approach. Furthermore, we will continue to improve the city's facilities and its capacity to provide services.

Fourth, we will focus on expanding domestic demand. We will work to increase effective investment, promote consumer goods trade-in programs, and accelerate efforts to develop Tianjin into an international consumption center.

Fifth, we will focus on reform and opening-up. We will step up efforts to build a financial innovation operation demonstration zone, take actions to upgrade pilot free trade zones, conduct pilot trials in advantageous areas, and deeply involve ourselves in the Belt and Road Initiative cooperation.

Thank you. 

China Daily:

In recent years, Tianjin has made continuous efforts to develop itself into an international shipping center and a green port. In particular, the metropolis unveiled an action plan for the integrated development of its port, industry, and city. Could you please introduce your achievements and future plans in this regard? Thank you.

Zhang Gong:

Thank you for your question. I will once again give the floor to Mr. Liu.

Liu Guiping: 

Thank you very much for your interest in Tianjin. Tianjin, a city built by the sea, has thrived thanks to its port. In recent years, we have fully implemented the important instructions given by General Secretary Xi Jinping during his inspection of Tianjin Port, thus accelerating the integrated development of the port, industry, and city.

The construction of a world-class, smart, and green hub port is advancing rapidly. We have launched China's first unmanned driving demonstration port zone and built the world's first "smart zero-carbon" wharf. Tianjin Port connects to three Eurasian continental bridges leading to Erenhot, Manzhouli, and Khorgos ports. We maintain economic and trade exchanges with over 500 ports in more than 180 countries and regions, offering 145 container shipping routes and operating over 550 monthly liner services. As previously mentioned, Tianjin Port handled over 22 million TEUs of containers and 558 million tons of cargo last year, ranking eighth and 10th worldwide, respectively. We are committed to the coordinated development of the Beijing-Tianjin-Hebei region. Tianjin Port serves as a crucial measure of Beijing's business environment. To better support Beijing's development, we have established a Beijing-Tianjin coordinated port service center in Beijing. Additionally, we have aided the development of Xiong'an New Area by creating a service center in Xiong'an Comprehensive Bonded Zone. We offer 44 sea-rail intermodal transport channels covering the Beijing-Tianjin-Hebei region and northeast, north, and northwest China. Last year, our throughput reached 1.227 million TEUs, placing us third in China in this category.

The supportive role of port-related industries continues to strengthen. Last year, Dalian Shipbuilding Industry Co., Ltd (DSIC) Tianjin Shipbuilding Co., Ltd.  delivered three 16,000-TEU container ships with independent intellectual property rights. The 1.2 million-ton Sinopec Nangang ethylene project reached the conditions for trial production. The Tianjin International Petroleum & Gas Exchange Center began trial operations. Last year, Tianjin International Cruise Home Port welcomed 85,000 inbound and outbound passengers, ranking first in the country.

The integrated development of the port, industry, and city is accelerating mutual empowerment. Leading shipping companies, such as China COSCO Shipping Corporation Limited, are expanding their presence in Tianjin at an accelerated pace. Last year, the company signed a strategic cooperation agreement with the municipal government. The company is expected to add two more ocean shipping routes next month. The development of the shipping service cluster zone is also speeding up. Last year, over 1,000 new shipping service enterprises were registered, up 13.5% year on year. The first Tianjin International Shipping Industry Expo was held last year, enhancing the service radiation capacity and international influence of Tianjin Port. The expo will be held annually, with this year's edition scheduled for July.

Next, we will focus on building a key strategic hub in northern China to facilitate the "dual circulation" of domestic and overseas markets, and we will spare no effort in promoting the integrated development of the port, industry, and city. Specifically, we aim to make improvements in four areas, known as the "Four Enhancements." First, we will enhance port support capabilities by accelerating the development of multimodal transportation involving roads, railways, sea, and air, optimizing the loading, unloading and transport system, and improving port throughput, cargo handling capacity, and distribution capabilities. Second, we will enhance port operation levels by promoting smart, green, and low-carbon development with high-end cargo specialization, value-added services, and efficient management. Third, we will enhance the quality of port-related industrial development by fully utilizing marine resources, focusing on the development of port and maritime economies, and creating new business formats and models. Fourth, we will enhance the development of the port city by promoting urban planning, functional layout, environmental improvement, and business design to create a port city landscape. Thank you!

Shenzhen TV Zhi News: 

In February of this year, the Beijing-Tianjin-Hebei region jointly released distribution maps of major historical and cultural resources, revealing shared cultural heritage with distinctive local characteristics. For example, Beijing boasts a rich heritage as an ancient capital, while Hebei is renowned for its Yanzhao cultural heritage. Now, I would like to know, what are the main characteristics of Tianjin's culture? Additionally, what measures will be taken to further leverage these distinctive cultural characteristics in urban development? Thank you.

Zhang Gong:

Thank you for your interest in Tianjin's culture. Now, let's give the floor to Ms. Shen Lei to answer this question.

Shen Lei:

Thank you for your question. You also mentioned the Beijing-Tianjin-Hebei region from a cultural perspective. I understand that culture is the accumulation and continuation of history. Beijing, Tianjin and Hebei are connected geographically and share the same cultural heritage. However, each region has its own historical development context, leading to distinct cultural characteristics.

Tianjin boasts a 10,000-year history of human activity, a history of civilization spanning thousands of years, and a city history of six centuries. It is often dubbed "a window into modern China's past century" because it created over 100 "firsts" in modern Chinese history. Therefore, it is also referred to as the "gateway to the capital region, a hub of river and sea transport, an epitome of modern history, a frontier of cultural integration, the cradle of national industry, and the pioneer of modern education." Its unique geographical environment, where rivers meet the sea, coupled with the shifting dynamics of modern times, has endowed Tianjin with a cultural characteristic and temperament of "diversity, inclusiveness, fusion, harmony, openness, and innovation." This characteristic and temperament have deeply integrated into the fabric of the city's development and permeated the lives of its residents, shaping the city's appearance, personality, external features, and internal qualities.

For example, the "urban charm" of Tianjin is characterized by the Haihe River flowing through the city, imparting a unique aura to the urban landscape. The historical architectural buildings on both banks of the Haihe River, commonly known as "small Western-style buildings," are diverse and distinctive, presenting a "world architecture expo" and bearing witness to legendary stories of many historical figures. This has given Tianjin a unique urban landscape blending Eastern and Western influences, and ancient and modern styles. The "cultural and artistic charm" of Tianjin is evident in its abundance of cultural celebrities and artists, being a prominent center for the development of various art forms such as Peking Opera, cross-talk, northern Chinese folk art, Ping Opera, and Chinese drama. Tianjin audiences love art and know how to appreciate the beauty of art, and the mutual interaction between actors, audience, and art has become a unique cultural phenomenon. The "humanistic character" of Tianjin is reflected in the optimistic, humorous, hospitable, and righteous nature of its people, which has become a distinctive cultural characteristic of the city. In Tianjin, you can experience the city's grand atmosphere, featuring both generosity and cosmopolitanism, blending the ancient with the modern, and offering a profound yet romantic feel wherever you go.

Culture is the soul of a city, representing its image and influencing its development. We will cherish and develop urban culture with greater care and affection, promoting cultural enrichment, benefiting the people, nurturing the city and fostering industry through culture. First, cultural protection and inheritance. We will preserve and utilize historical and cultural areas, heritage buildings, and intangible cultural heritage. Second, cultural transformation and presentation. We will delve into Tianjin's rich historical and cultural resources to enhance the supply of high-quality cultural products and services. Third, cultural branding and identification. By highlighting Tianjin's unique elements, we will strengthen Tianjin's art, literary, tourism, creative and time-honored brands. Fourth, cultural dissemination and exchange. We will share Tianjin's stories through various platforms and resources to spread its brilliance in cultural exchanges. Thank you.

Xinhua News Agency: 

Mr. Zhang mentioned Tiankai Higher Education Innovation Park earlier, and we have noticed that since its opening in May last year, Tiankai Higher Education Innovation Park has attracted widespread attention. What were the considerations in building the park? And what role will Tiankai Park play in Tianjin's development of sci-tech innovation in the future? Thank you.

Zhang Gong: 

Thank you for your interest in Tiankai Higher Education Innovation Park. I'll answer this question. Tiankai Higher Education Innovation Park gets its name from a combination of Tianjin University and Nankai University, and the name suggests "Tian Gong Kai Wu," an ancient book about technologies in the Ming Dynasty. We hope this platform can lead to greater sci-tech innovation and cultivate more leading figures in innovation and entrepreneurship, nurturing a mutually beneficial relationship between the city and universities, innovation and entrepreneurship. The construction of Tiankai Higher Education Innovation Park is in line with the needs of the coordinated development of the Beijing-Tianjin-Hebei region, the increasingly evident integration of Beijing and Tianjin, and closer collaboration in sci-tech innovation. It is an important measure in cultivating Tianjin's own innovation capacity, stimulating its technological innovation vitality and continuously promoting the development of Tianjin's new quality productive forces.

As Mr. Liu just mentioned, since opening in May last year, Tiankai Higher Education Innovation Park has registered more than 1,500 technology-based innovative enterprises and introduced 225 technology financial and service institutions. In fields such as new energy, new materials, synthetic biology, artificial intelligence, biomedicine, precision measurement and brain-machine engineering, a vibrant innovation scene has been preliminarily formed.

Next, we will focus on building Tiankai Higher Education Innovation Park into an influential source of innovation, a highland for regional technology achievement transformation, and an ecosystem of sci-tech innovation services. We will focus on policy services, technology services and professional services, develop and optimize the park, and continuously promote its quality development.

We will work on improving policies and support mechanisms in line with the rules for developing science and technology parks and market-oriented operations, focusing on stimulating the vitality of various types of personnel and institutions engaged in sci-tech innovation. We will introduce more targeted upgraded support policies for Tiankai Higher Education Innovation Park to better nurture and attract innovative achievements, talents and investment.

We will work on cultivating a strong technology service system and creating a favorable innovation ecosystem. We will first nurture and leverage the roles of funds such as the Haihe Industry Fund, Tianjin University Jiuanhaitang Fund and Nankai Xinkaihu Fund, vigorously introducing market-oriented technology service industries such as technology and business verification, pilot testing, inspection and testing, and knowledge services to facilitate achievement transformation.

We will work on optimizing government services and further strengthening supporting services and policy coordination for sci-tech and talents. Talent-driven development is of great concern, especially against the backdrop of increasingly close integration in the Beijing-Tianjin-Hebei region. We will introduce an upgraded version of the "Haihe Talent" policy and promote the construction of a smart park service platform, launching more efficient service scenarios to continuously expand the application scenarios of technological innovation achievements in Tianjin.

We will work on promoting comprehensive opening-up and cooperation in Tiankai Higher Education Innovation Park, strengthen cooperation with Zhongguancun and other advanced domestic science and technology innovation parks, and explore extensive cooperation with international technology service companies.

We will coordinate the implementation of the "one core, two wings and multiple points" plan for Tiankai Higher Education Innovation Park. Currently, the overall planned area of the park is 80 square kilometers. We will orderly enhance the core area's functions in innovation driving services and expand the achievement transformation and basic supporting functions of the extended area, continuously improving the market-oriented operation and management mechanism.

Tiankai Higher Education Innovation Park is a newly established science and technology innovation park. We hope that everyone will continue to care for and support its development. With everyone's help, the park will surely thrive and become a fertile ground for innovation and entrepreneurship. Thank you.

Hong Kong Economic Herald: 

We have noticed that Tianjin has introduced many measures in recent years to support the development of the private economy. Recently, Tianjin has also launched activities to visit and serve private enterprises. What are the typical practices Tianjin is taking to optimize the business environment and serve the private economy? And what are the next steps in focusing on the concerns of enterprises? Thank you.

Zhang Gong: 

Thank you. This is a very important question. I would like to invite Mr. Dai, director of the Tianjin Development and Reform Commission, to answer.

Dai Yongkang:

Thank you very much for your interest in Tianjin's business environment and private economy. As you mentioned, we have long been committed to working unswervingly both to consolidate and develop the public sector and encourage, support, and guide development of the non-public sector, treating private enterprises and entrepreneurs as our own family and serving the development of enterprises with care and affection. Last year in particular, we held a citywide high-quality development conference for the private economy and hosted the China Private Enterprises Investment and Financing Conference , and proposed a package of support measures addressing the concerns of private enterprises. Last year, the growth of the added value of the private economy increased by 4.5 percentage points compared to the previous year. There were more than 300,000 newly registered private business entities throughout the year, an increase of 13.3% over the previous year, accounting for 99% of the newly registered business entities in the city. The quality of our private economy development has also been relatively good, with tax revenue growing by 26.1%.

The term "our own" conveys a sense of respect and recognition, and it is the essence of our service and commitment. In the following steps, we will focus on addressing the concerns of enterprises and provide full support for the growth of the private economy. We will continuously optimize the development environment, provide greater room for private enterprises to thrive within major strategic implementations, ensure more stable expectations for private enterprises during comprehensive and deep-rooted reforms, and enhance precise services to give private enterprises a stronger sense of accomplishment. We will demonstrate a clear stance of support for "our own," employ effective measures in service delivery, fulfill our commitments, and enable businesses to benefit and gain confidence. Our efforts to promote the development of the private economy will primarily revolve around three aspects:

First, support should be substantial. We aim to expand the space for the development of the private economy, create more opportunities, and provide a broader stage. This support includes assisting large enterprises in participating in Tianjin's major projects and key tasks, as well as facilitating the integration of small- and medium-sized private enterprises into the industrial chain so as to provide necessary support and complement large enterprises and major projects. This will empower all types of business entities to actively contribute in various areas, including major project construction, technological innovation, industrial cluster development, and domestic and international market expansion.

Second, actions should be prompt. We deeply understand that time is a cost for businesses. Therefore, we will intensify efforts to reform the business environment and further enhance the delegation of powers to streamline administration. Building upon the foundation of removing barriers to market entry, we will address the challenges faced in business operations. This includes promoting the direct cancellation of approval requirements, shifting from approval-based processes to record-filing systems, implementing commitment-based notifications, and optimizing the classification of approval services. We will vigorously promote initiatives such as immediate processing, one-stop services, online procedures, and integrated solutions. Furthermore, we will continue to advance online problem-solving measures in the Beijing-Tianjin-Hebei region, aiming to reduce time costs for enterprises.

Third, services should be delivered with warmth. We will continue to carry out various activities, such as visiting and serving enterprises, to keep in close contact with private businesses. We aim to truly fulfill our role as guardians of enterprise development, facilitators of resource connections, and providers of attentive and reliable services. Additionally, we will vigorously promote the spirit of Tianjin merchants in the new era, striving to create a positive social atmosphere that respects entrepreneurs and innovators.

That concludes my introduction. Thank you.

Guangming Daily: 

Tianjin is a national advanced manufacturing research and development base. Airbus's second assembly line and Lenovo's innovation industry park have already been established in Tianjin. Industries such as intelligent technology, green petrochemicals, automobiles, and equipment manufacturing are also witnessing accelerated growth. What new initiatives has Tianjin implemented to promote industrial revitalization and accelerate the development of new quality productive forces? Thank you.

Dai Yongkang:

Thank you for your attention. As we all know, Tianjin is a key industrial city in modern China, and the central government has designated it as a national advanced manufacturing research and development base. This recognition highlights the advantages of Tianjin's industrial foundation and provides a path and direction for us to promote industrial revitalization and develop new quality productive forces based on local conditions.

Tianjin boasts a solid foundation and advantages in the manufacturing sector. We are home to 38 national engineering research centers, 77 national enterprise technical centers, 28 national champions in specific fields, and 253 "little giant" enterprises with high growth potential, advanced technology and strong market competitive edge as well as single-product specialists. Tianjin has also nurtured a batch of new research and development institutions that integrate scientific research, industry and finance, such as the Tianjin Research Institute for Advanced Equipment of Tsinghua University,  Peking University (Tianjin Binhai) New Generation Information Technology Research Institute , and Tianjin International Joint Academy of Biomedicine. Moreover, the city has established 10 major industry talent innovation and entrepreneurship alliances, connecting 100 universities and research institutes, 75 academicians and experts, and 1,700 leading entrepreneurs. Additionally, Tianjin has gathered a workforce of 35,000 engineers. These factors provide robust support for promoting industrial revitalization and developing new quality productive forces. Going forward, they are expected to play an even greater role.

Next, we will focus on four areas of work. We will strengthen our efforts in leading, traditional, emerging, and future industries. We will use sci-tech innovation to lead industrial innovation, enhance the driving force of industrial development through industrial innovation, and promote the manufacturing industry's high-end, intelligent and green development.

The focus of our leading industries is to move towards the high-end segment. Concerning our traditional leading industries, such as green petrochemicals, automobiles, and equipment manufacturing, we will vigorously enhance the supply capacity of high-end products, the localization rate of key components, and the level of cluster development. For example, in the important value chain of green petrochemicals, we are promoting the development of a high-end and refined chemical chain. We are accelerating the construction and operation of projects like a 1.2 million-ton ethylene project , as well as the Zhejiang NHU Co., Ltd. and Henghe projects, aiming to establish the Nangang Chemical Materials Base and a green petrochemical industrial cluster.

The focus of our traditional industries is quality improvement and upgrading. We are accelerating intelligent transformation, digitalization and networked integration in areas such as metallurgy, the light industry, and traditional Chinese medicine. This effort aims to drive equipment renewal, process upgrading, and digital empowerment, as well as enhance the quality and efficiency of development.

The focus of our emerging industries is to accelerate their growth and expansion. We are cultivating a number of strategic emerging industry clusters characterized by strong innovation capabilities, unique strengths, and high concentration in fields such as computing power, information technology, and integrated circuits. For example, in the information technology and creative industry that we are currently promoting, we are enhancing the "PK" system, which is built around the Phytium central processing unit and Kylin operating system. We are implementing the "Double Hundred Project" with 100 products and 100 application scenarios in the information technology and creative industry, aiming to establish Tianjin as a leading force and a demonstration leader in this field.

The focus of our future industries is to seize opportunities. We will accelerate our efforts in areas such as artificial intelligence, biomanufacturing and life sciences to establish a strong presence and explore new pathways for developing new quality productive forces. Thank you.

N Video from Nanfang Metropolis Daily:

Last year, as part of the economic endeavors, cities across the country have been creating cultural and tourism IPs that have continued to gain popularity. Tianjin boasts unique cultural and tourism resources. Some netizens have said that eating breakfast and listening to Xiangsheng have become a must-do for travelers. Could you please elaborate on the distinguishing features of Tianjin when it comes to innovating new models and scenarios for cultural and tourism consumption? What are you considering to implement for the next step? Thank you.

Zhang Gong:

Thank you. I'll invite Ms. Shen Lei to answer this question.

Shen Lei:

Thank you for your interest in Tianjin's cultural and tourism sector. I have also noticed such statements online. In fact, there are many attractions and activities in Tianjin. Besides Tianjin's breakfast and Xiangsheng, as you mentioned, visitors can also ride in a carriage, visit foreign-style buildings, cruise along the Haihe River, climb Panshan Mountain, watch the sunrise and admire the flower fields. These are also must-do activities for travelers in Tianjin. In terms of natural resources, Tianjin boasts a combination of mountains, sea, rivers, lakes, wetlands and hot springs. It has the beautiful Panshan Mountain, the lively Haihe River, the vast Bohai Bay and wetlands that attract migrating birds. In terms of cultural resources, Tianjin has the thousand-year-old Dule Temple , the National Maritime Museum of China known as the "Forbidden City on the Sea," and the Beijiang Museum , which is considered a living fossil. There are also interesting folk cultures and traditional folk art such as Yangliuqing New Year paintings and Clay Figure Zhang . Visitors can enjoy delicious food and snacks everywhere in Tianjin, and the streets are filled with the bustle and hustle of daily life. If you explore Tianjin with a "city walk" on the weekend, wandering along the banks of the Haihe River or strolling through the historical districts, I believe you will have a sense of being transported to Europe. If you are interested in China's modern history, coming to Tianjin is definitely a great choice. If you are considering visiting Tianjin right now, I suggest you go to the Five Great Avenues to see the crabapple blossoms, experience an immersive performance in a foreign-style building, or visit Jizhou district to climb the Great Wall, admire the pear blossoms and have a rest at a homestay. I believe you will find it a worthwhile trip.

Currently, the cultural and tourism industry is showcasing unprecedented vitality, and the cultural and tourism market is undergoing some new changes and presenting new traits. We need to grasp the trends and respond to these changes. First, we need to adapt to the trend of deep integration of various industries. Tourism is not only an industry but also an important carrier. We need to promote the integrated development of cultural tourism with commerce, agriculture and sports as well as technology, leveraging digitization to empower the cultural tourism industry. Second, we need to adapt to the transformation of cultural tourism supply going from "meeting demand" to "creating demand." The current cultural tourism market has shifted from input-driven market to one driven by innovation . We need to increase the supply of cultural tourism products that are empathetic, immersive and interactive to develop urban, youthful and culturally rich tourism. Third, we need to adapt to the characteristics of the era of mass tourism. Nowadays, tourism has become a lifestyle and an experience for people. The development of cultural tourism depends not only on the sector's resources but also on the resources of the entire city. Therefore, we need to comprehensively improve the supply of cultural tourism products, urban management services and promotional efforts, leveraging all three aspects to create a culturally distinctive tourism destination. Mr. Zhang Gong has already invited everyone to visit Tianjin. We particularly hope that everyone will come to experience the charm and vitality of this city. 

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

Chen Wenjun:

Due to time constraints, we only have time for two more questions.

Yicai:

The China (Tianjin) Pilot Free Trade Zone is about to celebrate its ninth anniversary. Could you please elaborate on the breakthroughs and achievements made by the zone over the past nine years? Also, what are the new deployments to further advance institutional high-level opening-up and to strengthen industries? Thank you.

Liu Guiping:

Thank you for your question and your attention to the China (Tianjin) Pilot Free Trade Zone . The zone is among the second batch of China’s pilot free trade zones and the first of its kind in north China. In the past nine years since its establishment, we have strictly followed the intention of the country to establish the zone, focusing on building institutional highlands rather than “policy depressions” that simply rely on policy incentives to attract investment and enterprises and exploring successful institutional practices that could be replicated in other parts of China . We have always adhered to testing institutions for the country and seeking development for the region, firmly grasped the core task of institutional innovation and continuously launched a series of innovative achievements, effectively stimulating market innovation vitality and promoting the high-quality economic and social development of the city. So far, the zone has implemented a total of 615 institutional innovation measures, of which 42 leading and iconic innovation achievements have been replicated and promoted nationwide. For example, Tianjin's industries such as financial leasing, commercial factoring, parallel importing of cars and bonded maintenance rank among the top in the country. Our financial leasing, especially aircraft leasing business, ranks second globally, and the premium of our commercial factoring business accounts for 30% of the country's total. Now, the zone has 88,000 business entities of various types with an average annual actual utilization of foreign capital exceeding $2 billion and an average annual import and export volume exceeding 200 billion yuan. With only 1% of the city's land area, it contributes 30% of the city's foreign trade and 40% of the actual utilization of foreign capital, effectively playing the role of a "testing ground" for reform and opening up.

The next step in the zone will be to strictly implement arrangements made by the CPC Central Committee and follow the important instructions of General Secretary Xi Jinping to further improve and solidify the institutional innovation of the zone and to further test institutions for the country. There are several main considerations:

First, we will advance institutional opening-up to meet high standards. Aligning with international benchmarks, we plan to prioritize key sectors such as trade, investment, finance, intellectual property rights, and environmental protection. We will further promote the pilot programs of institutional opening-up, aiming to establish a robust system and regulatory framework aligned with high-level institutional opening-up. We will explore innovations in cross-border data flow regulations, pioneering the implementation of standardized classification and grading criteria for enterprise data within a free trade zone. Tianjin's successful practices, combined with practical application scenarios, are expected to be steadily promoted and replicated across the country.

Second, we will attract and cultivate advantageous industries with high-level capabilities. We will fully implement the "negative list + pre-establishment national treatment" policy, develop "bonded+", and leverage the advantages of ports, logistics and industries. We will effectively implement the bonded maintenance policy for tax-exempt imported goods, which will be repaired under bonded status and then re-exported. Additionally, we will launch pilot projects for bonded remanufacturing of automotive parts, and continuously deepen the construction of the "five major bonded centers." We will develop "finance+" initiatives, continually burnishing the image of financial services such as financial leasing, commercial factoring and free-trade accounts. We will vigorously promote "digital+", advancing cross-border data flow and expanding platform economy industry clusters, such as cross-border e-commerce and online freight. We will further develop "trade+" initiatives, continuously strengthening business formats such as automobile import and export, cold chain logistics and service trade.

Third, we will act to promote the high-quality upgrading of the free trade zone. We plan to intensify efforts in institutional innovation, bolster the nurturing of promising sectors, leverage the combined advantages of policies related to the free trade zone, the opening-up of the service sector, and comprehensive bonded zones. Focusing on enhancing national strategic capabilities, elevating our platform's level for opening-up, and improving the quality and efficacy of institutional innovations, we will expedite the launch of enhancement action plans for the free trade zone, actively driving the implementation of new institutional innovation measures such as healthcare and financial opening-up.

We have confidence that under the strong leadership of the CPC Central Committee and the State Council, Tianjin FTZ will fulfill its predetermined objectives in this new historical phase. Through its own explorations, the free trade zone will undoubtedly facilitate Tianjin's reform and opening-up more effectively. This will contribute significantly to Tianjin's economic and social development, adding a significant stroke to the composition of the "Tianjin Chapter" of Chinese modernization. Thank you.

National Business Daily:

We know that Tianjin is a mega-city with a population of over 13 million people, and its residents are deeply concerned about various aspects of life such as employment, elderly care, education and healthcare. Could you please tell us about any new measures Tianjin has taken to ensure residents' well-being and to improve their quality of life? Thank you.

Zhang Gong:

This is a very good question. Ensuring residents' well-being and improving their lives are of paramount importance in the development of a mega-city. The ultimate goal of economic and urban development is to bring about a better life for residents. We will focus policies on the areas of people's livelihoods, extend services to cover all aspects of daily life and allocate resources toward improving quality of life. We will make concerted efforts to address practical issues directly related to people's lives, continuously meeting the new demands of residents.

In the fields of education and healthcare, our focus is on promoting balanced development. In education, we will further implement the project of radiating and leading high-quality educational resources in basic education. We will continue to expand the coverage of high-quality educational resources with plans to build, expand and renovate 12 compulsory education schools this year, adding 20,000 new student positions. In healthcare, we will accelerate the establishment of national medical centers at the Chinese Academy of Medical Sciences Blood Disease Hospital and the First Teaching Hospital of Tianjin University of Traditional Chinese Medicine . We will accelerate the construction of the Tianjin Hospital of Peking Union Medical College Hospital Phase II project and renovation projects, such as the Tianjin Huanhu Hospital . This year, we aim to complete the third phase of the Municipal People's Hospital, allowing the public to access more high-quality, efficient and affordable medical and health services.

In terms of "elderly care and child care," our focus is on strengthening service guarantees. Regarding the elderly, we will further develop the "Tianjin Elderly Care" service brand, expand care and in-home services for seven categories of particularly disadvantaged elderly individuals and continue to enhance meal assistance for the elderly to ensure they receive increased care and support. In terms of child care, we will persist in implementing the Child Health Enhancement Plan, intensifying monitoring and prevention efforts against childhood myopia, obesity and mental health issues. Furthermore, we will improve meal management in schools and reinforce comprehensive governance around school premises.  

In terms of social security, our focus is on safeguarding the bottom line of people's livelihoods. Regarding employment, we will explore and expand job opportunities, support flexible employment and provide assistance to those facing difficulties in finding work. In terms of medical insurance, this year we will raise the maximum reimbursement limit for outpatient and emergency services by an additional 1,000 yuan. Concerning housing, this year we aim to secure 5,000 units of affordable rental housing and construct 2,000 units of affordable housing for sale. This approach aims to gradually alleviate housing difficulties for new residents, young people and other vulnerable groups within the city.

In the field of urban renewal, our primary focus lies in elevating functional quality. We are directing our efforts towards upgrading business formats, enhancing functionalities and improving overall quality. This involves a concerted effort to enhance urban amenities and service capabilities. We have undertaken seven urban renewal projects alongside a batch of initiatives aimed at transforming urban villages. Moreover, we have initiated renovations and upgrades for 275 aging residential neighborhoods and are actively constructing embedded service facilities within urban communities. This year, we plan to install an additional 10,000 charging stations, facilitating the usage of electric and new energy vehicles. We aim to complete three rail lines, including the first phase of the west section of Metro Line 11, and to accelerate the transformation of Jinbin light railway . In line with resilient and secure city construction, we will thoroughly implement fundamental safety production measures, carrying out renovations of outdated gas, heating and water supply pipelines in an orderly manner by region and year. This year, we will renovate 623 kilometers of gas pipeline networks, 150 kilometers of heating pipeline networks and 30 kilometers of water supply pipeline networks. Additionally, we will harness technology to empower urban operations, thus bolstering intelligent supervision and enhancing the intrinsic safety level of the city. 

In short, we will diligently implement the 20 people-oriented projects that were established at the beginning of the year, aligning closely with the decisions and arrangements of the CPC Central Committee. Through these endeavors, we aspire to deliver tangible benefits to the residents of Tianjin. Thank you, everyone!

Chen Wenjun:

Thank you to Mr. Zhang and the other speakers. Thank you to all the journalists for your participation. Today's conference will end here. Goodbye!

Translated and edited by Xu Xiaoxuan, Wang Qian, Liu Jianing, Zhou Jing, Li Xiao, Wang Yanfang, Mi Xingang, Zhang Junmian, Xiang Bin, Yuan Fang, Liu Caiyi, Li Huiru, Wang Ziteng, Qin Qi, Zhang Rui, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Xu Kunlin, deputy secretary of the Communist Party of China (CPC) Jiangsu Provincial Committee and governor of Jiangsu province 

Mr. Ma Xin, a member of the Standing Committee of the CPC Jiangsu Provincial Committee and executive vice governor of Jiangsu province 

Mr. Hu Guangjie, vice governor of Jiangsu province

Mr. Fang Wei, vice governor of Jiangsu province

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 2, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding the fifth briefing in the series "Promoting High-Quality Development." Today's theme is Jiangsu's new frontier: Prosperous, beautiful and culturally advanced modernization. We have invited Mr. Xu Kunlin, deputy secretary of the Communist Party of China (CPC) Jiangsu Provincial Committee and governor of Jiangsu province to brief you on the relevant information, and to take your questions. Also present today are Mr. Ma Xin, a member of the Standing Committee of the CPC Jiangsu Provincial Committee and executive vice governor of Jiangsu province; Mr. Hu Guangjie, vice governor of Jiangsu province; and Mr. Fang Wei, vice governor of Jiangsu province.

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

Xu Kunlin:

Ladies and gentlemen, friends from the media, good morning. It's a great pleasure to meet you here and answer your questions. First of all, on behalf of the CPC Jiangsu Provincial Committee and the Jiangsu Provincial Government, I'd like to express my heartfelt gratitude to you for your long-term interest in and support for Jiangsu's work.

On March 5, General Secretary Xi Jinping took part in a deliberation with the delegation of Jiangsu province at the second session of the 14th National People's Congress (NPC) and delivered an important speech. He emphasized the need to firmly focus on the primary task of high-quality development, and develop new quality productive forces according to local conditions. He expressed the hope that Jiangsu will have greater confidence, exert its utmost, and shoulder greater responsibilities to make even more contributions to the nation. The entire Jiangsu province is thoroughly studying and implementing the guidelines of the general secretary's important speech, earnestly executing the guidelines from the Central Economic Work Conference and the "two sessions," and pursuing substantive and solid results in all its work. Jiangsu is taking practical actions to uphold 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, and resolutely 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. First, Jiangsu will consolidate and build momentum for economic recovery and growth. Seizing the opportunity presented by the new wave of large-scale equipment upgrading and trade-ins for consumer goods, the province will continuously expand investment with good returns, unlock consumption potential and strengthen dynamic foreign trade, thereby fulfilling the political duty of shouldering greater responsibilities. Second, Jiangsu will accelerate turning itself into an important front for developing new quality productive forces. It will fully cement basic research, effectively construct and utilize high-level innovation platforms such as Suzhou Lab and Purple Mountain Laboratories, and strive to build an industrial sci-tech innovation center with global influence. Third, Jiangsu will work hard to develop an advanced manufacturing base with international competitiveness. It will coordinate the upgrading of traditional industries, the expansion of emerging industries, and the nurturing of industries of the future. The province will foster 10 high-standard national advanced manufacturing clusters, and expedite the development of a modernized industrial system with advanced manufacturing as the backbone. Fourth, Jiangsu will redouble its coordinated efforts to advance in-depth reform and high-level opening-up. It will focus on reforms in key areas such as market-oriented allocation of factors as well as investment and financing, and speed up the construction of a two-way opening-up hub with global appeal. Fifth, Jiangsu will make urban-rural and regional development more coordinated. It will promote the development of the Yangtze Economic Belt, the integrated development of the Yangtze River Delta in a coordinated manner. Additionally, it will deepen construction of the "1+3" key functional zones, namely the Yangtze River city cluster and its coastal economic belt, the Yangtze River and Huaihe River ecological economic zone, and the Xuzhou city as a central city in the Huaihai economic zone, thereby enhancing their leading role while establishing a new development pattern. Sixth, Jiangsu will steadily guarantee people's well-being. It will make sure that high-quality development and greater security reinforce each other, and ensure people's access to childcare, education, employment, medical services, elderly care, housing, and social assistance at a higher level, thus giving the people a growing sense of fulfillment, happiness and security.

Jiangsu bears the earnest expectations of General Secretary Xi Jinping. During every crucial period and at each key juncture, he provides guidance and points the direction for us, steering us on the right path. During his inspection visit to Jiangsu from Dec. 13 to 14 in 2014, the general secretary drew a great blueprint for developing a prosperous, beautiful and culturally advanced new Jiangsu, providing guidance for Jiangsu's endeavor toward creating a moderately prosperous society in all respects and presenting a vision for the future of Jiangsu's modernization drive. In November 2020, he entrusted Jiangsu with the honorable mission of striving to become a model and leading the way by example. In March and July 2023, he urged Jiangsu to continue to lead high-quality development and Chinese modernization, respectively. The general secretary's demands for Jiangsu have been consistent and in line with the times, focusing on modernization and pointing to high-quality development, assigning it the responsibilities of leading the way and making greater contributions. People across the province are brimming with gratitude and are rallying their efforts to forge ahead, striving to translate the general framework of developing a prosperous, beautiful and culturally advanced new Jiangsu into concrete efforts.

In terms of economic prosperity, Jiangsu's GDP has leapt by 6 trillion yuan over the past decade, soaring from 6.51 trillion yuan in 2014 to 12.82 trillion yuan in 2023. All of its 13 cities with subordinate districts have entered the nationwide top 100, with the total economic output of five cities exceeding 1 trillion yuan. As for people's prosperity, the per capita disposable income of residents has increased from 27,200 yuan to 52,700 yuan, and the urban-rural income gap ratio narrowed from 2.30:1 to 2.07:1, making Jiangsu one of the provinces with the narrowest urban-rural income gap. The average collective operating income per village exceeds 2.3 million yuan annually. Regarding beautiful environment, energy consumption and carbon dioxide emissions per unit of GDP have dropped by around 26.4% and 30.9%, respectively, while total economic output nearly doubled. The air quality in Jiangsu has met the Level II standard for three consecutive years, and the water quality of the Jiangsu section of the Yangtze River has remained at Level II for six years in a row. Furthermore, Taihu Lake has been safe from pollution and damage for 16 consecutive years, with its water quality and algae situation reaching the best level in 16 years. As for advanced culture, all 13 prefecture-level cities have become "National Civilized Cities." The "Zhangjiagang Experience" in creating civilized cities and the "Mazhuang Experience" in promoting rural cultural-ethical progress have exerted widespread influence. The fruits of high-quality development have nurtured a flourishing civil society in Jiangsu.

Friends from the media, the quest for a prosperous, beautiful and culturally advanced new Jiangsu reflects General Secretary Xi's profound care and high hopes. It demonstrates the theoretical and practical strength of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We will keep his instructions in mind, move forward with gratitude, and strive to be at the forefront of writing a new chapter of modernization in our quest for a modernized Jiangsu. Thank you.

Chen Wenjun: 

Thank you, Mr. Xu. The floor is now open for questions. Please identify the media outlet you represent before raising your questions.

CCTV:

Good morning, Mr. Xu. You just mentioned that during this year's "two sessions," when General Secretary Xi Jinping participated in the deliberations of the Jiangsu delegation, he emphasized that Jiangsu, as a developed province in east China and an economic powerhouse, should better leverage its strength to drive the development of the whole country. Moving forward, how will Jiangsu leverage its strength to consolidate and bolster the positive trend of economic recovery? Thank you.

Xu Kunlin:

Thank you for your question. This year, our goal is to achieve a GDP growth rate of over 5%, and we are committed to putting in more effort in practical work to aim for even better results. Last year, Jiangsu's GDP growth rate was 5.8%, 0.6 percentage point higher than the national rate. Both its economic aggregate and increment accounted for one-tenth of those of the nation, making further contributions to the development of the whole country. This year, we hope to maintain this momentum. With confidence, we will exert our utmost efforts and courageously shoulder great responsibility to seize all favorable opportunities, utilize all favorable conditions, and act in a timely manner to make greater contributions to the country's overall development. Our top priority is to seamlessly integrate the strategy of expanding domestic demand with supply-side structural reforms. With such efforts, we can better coordinate consumption, investment, and foreign trade, thereby promoting sound economic flows.

First, we will strive to expand productive investment. Investment plays a vital role in stimulating economic growth. In 2023, investment contributed 34.1% to Jiangsu's economic growth, with investment in manufacturing accounting for 44.6%, playing a significant role. Private investment accounted for 66.5%. We place great emphasis on leveraging the driving role of major projects, focusing on industrial investment projects, and fully stimulating the vitality of private investment. In the first two months of this year, Jiangsu's value-added of industries above the designated size grew by 9.6%, 2.6 percentage points higher than the national average, and its fixed assets investment rose by 5.1%, 0.9 percentage point higher than the national level. Another positive trend is that the growth rate of private investment has overcome the low-level growth that had persisted since June 2022, with a 5.6% increase in the first two months of this year, demonstrating that confidence in development and investment across the whole society is growing. China is pushing forward with large-scale equipment renewals, which, with huge investment, will stimulate new growth drivers. Based on our investigation, Jiangsu needs 900 billion yuan to update its equipment across the entire province this year. As such, we have introduced a loan interest subsidy policy for the manufacturing sector: provincial finance authorities will offer a 1-percentage-point discount on loan interest rates for manufacturing-related equipment procurement and renovation projects. At the same time, city- and county-level governments are encouraged to provide an additional 1-percentage-point discount. The first batch of loans will be subsidized with 30 billion yuan, and when this fund is used, we will offer more.

Second, we will stimulate potential consumption. Consumption is fundamental in promoting economic growth, contributing 79.8% to last year's GDP growth. Our provincial finance department has allocated a certain amount of funds for two consecutive years to host promotion activities to encourage people to buy green and energy-saving household appliances, achieving positive effects. We plan to continue the promotion this year. In the first three months of this year, we held more than 2,600 promotion events and issued vouchers and digital RMB red packets to benefit consumers. During the Spring Festival, Jiangsu's cultural and tourism market flourished. Statistics from cultural and tourism departments showed that spending in Jiangsu during the holiday accounted for 11.2% of the national total, ranking first in the country. We estimate that this year, spending on consumer goods replacements in Jiangsu will reach around 70 billion yuan. Therefore, we are moving faster to formulate policies and lists to support trade-ins for automobiles, household appliances, and home furnishings. We will also organize promotional activities in the countryside to encourage local people to buy new home appliances and automobiles. We will try to create more spending scenarios, attract more consumers, and stimulate market vitality. In the first two months of this year, the total retail sales of consumer goods increased 6.1%, 0.6 percentage point higher than the national average.

Third, we will strengthen dynamic foreign trade. Last year, Jiangsu's imports and exports fell short of expectations in the first three quarters. In response, we conducted a thorough analysis, identified the root cause, and implemented targeted measures to stabilize our international market share. As a result, we achieved positive growth for three consecutive months in the fourth quarter, registering a growth rate of 7.3%, 5.7 percentage points higher than the national average. Cross-border e-commerce development has been a weak point in Jiangsu. To address this issue, we formulated an action plan last year to promote the high-quality development of cross-border e-commerce and organized corresponding training sessions. Our efforts paid off, resulting in an annual growth of 13.4% in cross-border e-commerce. This year, we aim to cultivate more than 110 provincial-level cross-border e-commerce industrial parks and 15 cross-border e-commerce industrial belts with local features. Additionally, we have promoted the merger and restructuring of five provincially administered trading companies, including Jiangsu SOHO Holdings Group Co., Ltd. Following the restructuring, these enterprises' total import and export volume surpassed $11 billion. Currently, we are expanding our global trade layout and striving for further growth. This year, we are committed to achieving positive growth in imports and exports. In the first two months of this year, our imports and exports increased by 13.4%, 4.7 percentage points higher than the national average.

In summary, as a developed province in eastern China and one of the country's economic powerhouses, we have the confidence and capacity to shoulder more responsibilities to make greater contributions to the nation's overall development. Thank you.

Economic Daily:

It's well-known that Jiangsu province is one of the crucial parts in the integrated development of the Yangtze River Delta, and is also one of the major components of the Yangtze River Economic Belt. Moreover, Jiangsu is the place where the Belt (the Silk Road Economic Belt) and Road (the 21st Century Maritime Silk Road) converge. Given all this, what efforts has Jiangsu made to leverage its status as an economically-developed province to drive growth so as to better serve the country toward creating a new pattern of development? Thank you. 

Ma Xin:

For a long time now, Jiangsu has seized the opportunities brought about by national strategies, and given full play to the advantages of its distinctive industries. By boosting "chains" via "points" and driving "networks" via "chains," we stepped up efforts to advance integrated development of innovation chains, industrial chains and supply chains, creating more new strengths for innovation-driven growth so as to make contributions to China's overall high-quality development. We have focused our work on the construction of "one center, one base and one hub."

The construction of the "one center" aims to promote cross-regional collaboration in sci-tech innovation and industrial advancement so as to build an industrial and sci-tech innovation center with global influence. We have made coordinated efforts to ensure progress in both sci-tech innovation and industrial advancement, to achieve breakthroughs in core technologies in key fields and to facilitate the commercialization of scientific and technological advances. For example, the founding of the Jiangsu Industrial Technology Research Institute has connected scientific research with industries. It follows the idea that "make R&D an industry and take technologies as commodities," and support scientific and technological research in a new way which makes use of both fiscal allocation and investments. Over the past ten years, the institute has undertaken over 20,000 research programs entrusted by enterprises, carried out 5,000 major national and provincial-level research programs and helped build 1,350 new types of innovation enterprises. By doing so, a beneficial cycle has taken shape where development of industries gets boosted by sci-tech research while innovation in science and technology gets advanced by industrial development. 

The construction of the "one base" focuses on efforts to strengthen, consolidate and extend industrial chains, so as to build a basis for an advanced manufacturing sector with a global competitive edge. The manufacturing sector in Jiangsu has witnessed advanced development with its scale accounting for one eighth of the national total. Moreover, the province developed a complete range of industries with complete chains. Industries empowered by science and technology have developed into industrial chains, clusters and beyond. Take XCMG Hanyun Technologies as an example, it developed China's first industrial internet platform, offering services to more than 80 fields besides the equipment manufacturing sector. Thanks to digital and intelligent transformation, and network-based connectivity, the platform helps to realize the multiplier effect of industrial internet, and promote industrial development in a smart, green and integrated manner. 

The construction of the "one hub" aims to give multiple strengths of geographical position, opening-up and regional coordinated development full play so as to build a globally attractive and two-way open hub. We have made greater efforts to boost development of the province that serves as the intersection of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, and support enterprises to "go global" and promote industries to "bring in foreign investments." Resource factors both domestic and from abroad will gather in Jiangsu and be allocated to Jiangsu, which will be helpful in ensuring a new stage in the opening-up reach. Jiangsu has fully integrated into and contributed to the development of the Yangtze Economic Belt and the integrated development of the Yangtze River Delta, and has strengthened synergy with other regional development strategies and major regional strategies, so as to better leverage its role in driving regional and national development. Thank you. 

Jiangsu Broadcasting Corporation:

I noticed that the industrial and technological innovation was made one of the top priorities at Jiangsu province's "new year's first meeting" this year. What efforts will Jiangsu continue to make in this regard? Thank you. 

Hu Guangjie:

We will focus on industrial sci-tech innovation and strive to achieve the target of making Jiangsu a center "that holds global influence" in a bid to ensure sci-tech innovation and industrial innovation. By doing so, we are aiming to ensure the role of Jiangsu in driving scientific and technological innovation, in leading the development of industries and in resource factors allocation, so as to serve the country's high-level self-reliance and strength in science and technology. We will step up efforts in the following aspects:

First, we will transform educational and scientific resources in a more efficient manner. Jiangsu possesses rich educational and scientific resources, and it leads the country in the number of universities, national innovative cities and national high-tech zones. We are deepening strategic cooperation with national-level scientific research institutes, such as the Chinese Academy of Sciences and the Chinese Academy of Engineering, to attract more innovative enterprises to come to Jiangsu, to grow in Jiangsu and to gain market achievements in Jiangsu. For instance, over the past 18 years, the Suzhou Institute of Nano-Tech and Nano-Bionics (SINANO) of Chinese Academy of Sciences has been taking the lead in the groundbreaking and high-quality development of the nanotechnology industry. Currently, Jiangsu's nanotechnology industry accounts for approximately 30% of the national market, and the application of nanomaterials in biomedicine and other functional material fields is leading in the country. We will ramp up efforts to serve the building of national strategic scientific and technological forces, and to establish national-level technology transfer centers in universities and a batch of proof-of-concept centers. By doing so, more scientific and technological achievements will get the opportunity to be commercialized.

Secondly, we will step up efforts to promote development of high-quality enterprises. Innovation is one of the characteristics of Jiangsu enterprises and the number of small and medium sci-tech enterprises and that of listed companies on the Science and Technology Innovation Board all rank among the top in the country. We have fostered 1,474 national-level specialized and sophisticated "little giant" firms and 241 single-product champions in manufacturing sector, with their leading products being able to shore up weak links or fill in the gaps of key areas in the industrial chains. For example, a robotics company in Nanjing has maintained its R&D investment of over 10% for years and has strengthened research in core technologies in key fields, such as the servo system and the controller. As a result, it has become China's top manufacturer of industrial robots for four consecutive years. We will continue to advance the cultivation of enterprise and support initiatives to strengthen industrial chains as well as actions to foster specialized and sophisticated businesses. We are striving to establish an "innovation matrix" which is composed of 200 leading manufacturing enterprises, 15,000 specialized and sophisticated businesses and 50,000 innovative SMEs by the end of the 14th Five-Year Plan period (2021-2025).

Thirdly, we will pool innovative talent more effectively. With approximately 1.17 million R&D professionals in Jiangsu, including 65% of the country's academicians and 40% of its top-tier talent, Jiangsu will direct its efforts towards cultivating a robust pool of basic research talent, establishing a provincial basic science center and promoting the "Basic Research Special Zone" program to implant the seeds for industrial innovation. At the same time, greater efforts will be made to advance the National Graduate College for Engineers program with high standards, appoint experts and professors to enterprises as "vice president responsible for technology development" and "industry professors," deepen integration between the industry and the education sector, foster more master craftsmen and highly-skilled talent and create a favorable environment for talent development. The goal is to encourage more "hidden talent" to emerge and showcase their abilities to the fullest in Jiangsu. Thank you.

Cover News:

Jiangsu boasts an advanced manufacturing sector and possesses favorable conditions and capabilities for developing new quality productive forces. Could you please elaborate on the next steps needed to be taken in order to make Jiangsu an important locality for the development of new quality productive forces, considering the local conditions in the province? Thank you.

Xu Kunlin:

Thank you. I'll take this question. General Secretary Xi Jinping said it is important to make Jiangsu a major locality for the development of new quality productive forces. This positioning for the province means both a significant responsibility and a glorious mission for us. We will adhere to the principle of building the new before discarding the old, taking measures in line with local conditions and giving differentiated guidance. We will focus on building an industrial science and technology innovation center with global influence to strengthen the integration between scientific and technological innovation and industrial innovation.

Firstly, we will focus on basic research. Leveraging our strengths in the concentration of universities, research institutes and talent resources, we aim to achieve groundbreaking originality, starting from ground zero. The provincial government has allocated substantial funds of 2.48 billion yuan this year to support the construction of laboratory systems and drive major basic research projects across Jiangsu. Currently, Jiangsu leads in the establishment of 35 national key laboratories, with efforts underway to exceed 40 this year. This year, we will also establish special zones in applied and basic research, work with universities like Nanjing University and Southeast University to build high-standard research centers in physics, applied mathematics, and synthetic biology and implement 40 major projects in basic research. The goal is to make groundbreaking progress from zero to one.

Secondly, we will focus on industrial upgrading. We will vigorously promote the development of strategic emerging industry clusters, striving to secure a competitive advantage in futuristic fields and sectors. Simultaneously, we will facilitate the intelligent transformation, digitization and networking of manufacturing industries to bolster the strengths of traditional sectors. For example, a traditional casting enterprise in Suzhou has achieved over 90% automation in its intelligent casting demonstration workshop through data-driven decision analysis and intelligent transformation, reducing the product customization cycle from 7 days to half a day. This leads to an increase in the per capita production efficiency by 221% and the establishment of a casting industry park to guide the green transformation of small and medium-sized traditional casting enterprises in the supply chain.

Thirdly, we will reinforce the principal position of enterprises in innovation. Last year, we formulated action plans to enhance technological innovation capabilities of enterprises as well as policy measures to support private enterprises to participate in major scientific and technological innovation. In 2023, we saw the addition of 5,000 new high-tech enterprises, bringing the total to 51,000, as well as 795 "little giant" enterprises with high growth potential, advanced technology and strong market competitive edge to make a cumulative total of 1,474 such enterprises. We are committed to introducing additional policies to accelerate the integration of industry, academia and research that is spearheaded by enterprises. Our goal is to reach a total of 55,000 high-tech enterprises and 100,000 tech SMEs this year. Effective promotion of enterprise innovation is key to boosting total factor productivity and to fostering robust new quality productive forces. Thank you.

China Daily:

Jiangsu has been a pioneer for national opening-up. What new steps will Jiangsu take to promote higher-level opening-up and open economy? Thank you.

Fang Wei:

As we often say, Jiangsu thrives on reform and opening-up. Opening-up is our defining nature. Now, our goal of high-level opening-up is to build a two-way open hub with global appeal. I want to elaborate this with three keywords.

The first keyword is "hub." Jiangsu is located at an important intersection of the Belt and Road Initiative's trade routes. To the west, our railway links directly to Europe with a total of 24 China-Europe and China-Asia railway routes in operation. To the east, our shipping routes connect to major global ports, welcoming over 26,000 ships annually. Jiangsu has emerged as a crucial transit hub for trade with Japan, South Korea, Southeast Asia, Central Asia and Europe. Jiangsu boasts one of the most diverse manufacturing sectors and one of the most comprehensive industrial chains in China, with the operating income of six industries including machinery, electronics, light industry and textiles exceeding one trillion yuan for each. Our exports of the "new trio," namely, electric vehicles, lithium-ion batteries and photovoltaic products, account for 18.4% of the country's total exports, ranking first nationwide. These exports serve as pivotal nodes in both domestic and international industrial cycles. Benefited from a huge market size, Jiangsu's trade with other parts of the country as well as the world reached nearly 10 trillion yuan. Our ports handle over 3.5 billion metric tons of cargo annually with foreign trade cargo throughput up to 600 million metric tons. The two figures account for one-fifth and one-eighth of the country's total, respectively. Therefore, Jiangsu stands as a pillar and bridge boosting the dual circulation of domestic and international markets. Leveraging these strengths, we will strive to expand domestic demand, promote further opening-up, position the province as a hub for higher-level opening-up, a hub for industry and supply chains and a hub strategically driving the dual circulation of domestic and international markets.

The second keyword is "two-way opening up." In the past, Jiangsu focused primarily on opening up eastward, dominated by exports and attracting foreign investment. The province has increased its efforts to expand opening up to both domestic and international markets, pursue opening up both eastward and westward, place equal emphasis on imports and exports, and integrate moves to bring in outside resources with the drive to go global. Currently, Jiangsu's foreign trade dependence degree, the ratio of foreign trade volume to the province's GDP, stands at 40.9%, with a significant portion coming from emerging markets. The proportions of foreign-funded enterprises and private enterprises are nearly equal. In addition, open parks have served as key platforms for Jiangsu's push for a "two-way opening up" strategy. The 158 development zones at or above the provincial level have contributed to half of the province's economic output, 80% of foreign investment, and 80% of imports and exports. For example, Kunshan, a county-level city in the province, has fully leveraged the role of its economic and technological development zone and comprehensive bonded zone to cultivate an open economy. Its foreign trade has accounted for one-seventh of the province's total. Suzhou Industrial Park, a vital window for China's reform and opening up, will mark its 30th anniversary this year. The province is accelerating efforts to deepen trials on opening up and innovation. Since the establishment of the Jiangsu Pilot Free Trade Zone five years ago, 379 independent innovations have been introduced. Efforts have been made to promote opening up and innovation throughout the biomedicine industry chain and cross-border data flow, as well as pilot programs to facilitate services for foreign nationals in the province. These efforts are expected to further enhance the park's leading role in the future.

The third keyword is "globally attractive." Jiangsu has actively fostered international relations, boasting 363 friendly cities in 67 countries and regions, ranking first nationwide. The province also stands as one of the regions in China with substantial foreign investment, hosting 43,000 foreign-invested enterprises. Over 400 Fortune Global 500 companies have invested in Jiangsu. In recent years, foreign-funded enterprises have increased their investment, expressing their faith in Jiangsu with practical actions. Jiangsu is now home to 395 regional headquarters and functional institutions, as well as 293 foreign-invested research and development centers. For example, Taicang, a county-level city in the province, hosts more than 500 German-funded enterprises and is known as a hub for German companies. Looking ahead, we will step up institutional openness and innovation to attract more global capital, technology, and talent to Jiangsu, gaining new advantages in developing an open economy at a higher level.

Yicai:

Just as Mr. Xu said, Jiangsu has a number of traditional competitive industries such as the light industry, textiles, and chemicals, but these traditional industries are facing challenges in pursuing transformation and upgrading due to a variety of factors including a large industry size. What are the next steps to advance the upgrading of these industries and to foster emerging and future industries? Thank you.

Hu Guangjie:

Thank you for the questions. Jiangsu is a major manufacturing province, with its manufacturing sector spanning all 31 major categories. It boasts six industries with a scale exceeding 1 trillion yuan and is home to 10 national advanced manufacturing clusters. Industries like integrated circuits, ship and offshore engineering equipment, and biomedicine lead the country in terms of scale. To pursue greater development, we adhere to the real economy and strive to build a modern industrial system in the province. We have been promoting the manufacturing sector's advanced, smart, and green development, thereby strengthening our core competencies.

First, we are upgrading traditional industries. We have pushed forward the upgrading of traditional industries by developing digital and green technologies. The provincial government has allocated 200 million yuan in rewards and subsidies to kickstart the renovation of outdated equipment in chemical enterprises. Next, to align with national policies on large-scale equipment renewal, we will implement a series of policies, including loan interest discounts for industrial enterprises undertaking technological upgrading projects and special loans for such projects. We will ramp up efforts to increase the proportion of advanced production capacity in traditional industries, such as steel, petrochemicals, and building materials. We are the first in the country to implement the "digital-driven, smart and internet-based transformation" initiative to upgrade the manufacturing sector. The provincial government sets up a special fund of 1.2 billion yuan annually for this purpose, and cities and counties in the province allocate 4 billion yuan for loan interest discounts to support this work. Currently, about 50,000 technological upgrading projects have been implemented. This year, our goal is to ensure that all industrial enterprises above designated size embark on digital transformation.

Second, we are developing clusters of emerging industries. Jiangsu boasts a complete industrial system and strong support capacity. For example, in the field of new energy vehicles (NEVs), production in the province has surpassed 1 million for the first time, covering the entire industrial chain from vehicles to batteries, motors, and electric controls. The production and sales of power batteries lead the nation. In Changzhou alone, power battery production encompasses 31 out of the 32 essential stages, supported by over 3,000 upstream and downstream enterprises throughout the entire industrial chain. Industrial clusters have flourished in various sectors throughout Jiangsu. We will continue to consolidate and enhance the strength of these clusters while leveraging the guiding role of funds for provincial strategic emerging industrial clusters, which total more than 100 billion yuan. Efforts will be made to develop competitive industries such as new energy, new materials, and high-end equipment into internationally competitive strategic emerging industrial clusters.

Third, we are cultivating future industries. Various sectors of Jiangsu's future industries are taking shape. Nanjing and Suzhou have been approved as national innovation centers for third-generation semiconductor technology. We are the country's first to achieve the technological breakthrough needed for mass-producing 6-inch silicon carbide power devices. The province's biomanufacturing industry generates about 15% of the sector's total national revenue. The hydrogen energy industry has developed a complete industrial chain spanning production, storage, transportation, refueling and application. In addition, we will actively explore the application of artificial intelligence in the manufacturing sector and establish an innovative system for future industries that integrates cutting-edge technologies, application scenarios and leading zones. Efforts will also be made to enhance the allocation of resources, such as finance and talent. Through these efforts, we aim to gain momentum and advantages in developing future industries. Thank you. 

Changjiang Daily:

Despite its long-standing reputation as the "land of fish and rice," Jiangsu has only half the national average of per capita arable land. How has Jiangsu managed to boost grain production and achieve stable and high yields as it advances agricultural modernization? Thank you.

Ma Xin:

It's well-known that Jiangsu boasts a strong industrial capacity, but actually, it also has a robust agricultural industry. Allow me to present two sets of figures in this regard. First, Jiangsu's total grain acreage has steadily remained above 80 million mu (about 5.3 million hectares) for 14 consecutive years. Its total grain output has consistently exceeded 70 billion jin (35 million metric tons) for 10 consecutive years, reaching a record high of 75.95 billion jin in 2023. The per unit rice yield surpassed 600 kilograms, ranking first among major rice-producing provinces. Second, Jiangsu has managed to produce 5.5% of the country's total grain with only 3.2% of the nation's arable land. It not only ensures self-sufficiency in grain for the province with the highest population density, but also results in a surplus in grain output that can be allocated to other provinces. General Secretary Xi Jinping commended this, saying, "this is rather extraordinary for a coastal province in the eastern region." To attain these achievements, we have focused our efforts on the following three aspects:

First, we have kept developing fertile cropland to ensure grain output. Jiangsu has been working to increase the amount of high-standard cropland, improving cropland quality, and enhancing its ecological environment. In the first three years of the 14th Five-Year Plan period (2021-2025), governments at all levels in Jiangsu have invested 28 billion yuan to add and rebuild 11.17 million mu of high-standard cropland. A total of 80% of Jiangsu's permanent basic cropland, totaling 42.8 million mu, has been converted into high-standard cropland. Starting this year, we will accelerate the implementation of digital monitoring for high-standard cropland, specify the total area, quality, productivity and operational details, and provide digital access to all high-standard cropland.

Second, we have highlighted the role of technology in boosting grain output. We have worked to make breakthroughs in key techniques related to seeding and agricultural machinery. The contribution of sci-tech progress to agricultural development has exceeded 72.5%, and the mechanization rate in the plowing, planting and harvesting of crops reached 87.2%, over 10 percentage points higher than the national average. Since the beginning of the 14th Five-Year Plan period (2021-2025), 14 of our rice varieties have been added to the list of super rice made by the Ministry of Agriculture and Rural Affairs, accounting for 11% of the nation's total. These improved varieties have contributed to over 45% of the increase in agricultural production.

Third, we have managed to secure the availability of farming workforce. Jiangsu has taken the lead domestically in training "new farmers." It established a specialized academy named after the well-known local agricultural expert Zhao Yafu to train "new farmers" for the new era. These farmers are not only passionate but also adept at technology, skilled in business operations and proficient in management practices. In recent years, Jiangsu has witnessed the rise of exemplary individuals such as Wei Qiao, honored as "National Outstanding Individuals in Crop Cultivation," who have served as inspiration for more "new farmers" to contribute to agricultural advancement.

Moving forward, Jiangsu will roll out a three-year action plan aimed at boosting per unit crop yield by making comprehensive enhancements in seeding, crop cultivation methods, agricultural machinery and the fertility of cropland. It will also take targeted measures to increase the output of rice, wheat and corn, and strive to realize a significant yet balanced increase in grain output. Thank you.

Xinhua Daily:

I understand that the water quality of Taihu Lake last year reached its best level since 2007. Could you please introduce Jiangsu's efforts to advance ecological conservation of Taihu Lake and its plans going forward? Thank you.

Fang Wei:

The ecological condition of Taihu Lake has attracted widespread public attention, and improving the lake is Jiangsu's due responsibility. Since 2007, the Jiangsu provincial government has invested a total of 34 billion yuan, mobilizing over 300 billion yuan from various levels of government within the province and the private sector. Nearly 8,000 lake harnessing projects have been implemented here, and the ecological environment has seen significant improvements after 15 years of efforts. Monitoring statistics in several indicators, including total phosphorus level, nitrogen density, occurrences of algal blooms, occurrences of blue-green algae and its maximum coverage, reached their best levels since 2007. For example, the lake's phosphorus level stood at 0.052 mg/L and nitrogen was 1.09 mg/L, down by 48% and 61%, respectively, compared with the year 2007. As a result, in the first half of last year, the Ministry of Ecology and Environment rated Taihu Lake as "good" for the first time. Currently, the lake is undergoing a new round of comprehensive harnessing projects. Our goal is to bring about a qualitative change in the lake's ecological environment within the next decade, transforming it into a world-class ecological and innovation lake area.

The harnessing of lakes has always been a global challenge, especially when it comes to large, shallow ones like Taihu Lake. The Taihu Lake Basin is densely populated, with numerous towns and industries. The lake area covers one-fifth of Jiangsu's total area, housing over 30% of its population and contributing to more than 40% of its economic output. Carrying out lake harnessing projects in such an area presents challenges that are unprecedented worldwide. The harnessing of Taihu Lake is not just about solving technical problems; it requires a fundamental shift in our concept of and approach to development. In the new round of lake harnessing efforts, we are taking a comprehensive approach, focusing not just on the lake itself but also on its upstream areas. Precision efforts have been implemented targeting both the water and the shores. We have learned that while issues may appear in the water, their roots often lie onshore. Therefore, we are closely monitoring 40 key rivers in the basin, implementing tailored measures to tackle pollution sources, and comprehensively transforming industries, reducing pollution and restoring the ecological environment. Last year, we took actions against and upgraded over 4,500 polluting companies in areas like Yixing in Wuxi, Gehu Lake in Changzhou, as well as Taohu Lake. This resulted in a reduction of major pollutant emissions by over 1,500 metric tons and the repurposing of more than 30,000 mu of existing land used for construction. We are prioritizing efforts to strike a balance between the prevention of additional pollution and reduction of current pollution. We are monitoring the 20,282 phosphorus-related enterprises in the basin and tracking their phosphorus emissions. The rate of urban sewage collection is increasing by 5% annually. We have also carried out ecological dredging in the lake, with 49 million cubic meters of sediment removed so far, equivalent to 70 Slender West Lakes in Yangzhou. In the new round of lake harnessing efforts, we plan to continue removing more than 30 million cubic meters of sediment from Taihu Lake and effectively reduce pollution. We will also implement measures to enhance the lake's ecological capacity and increase greenery in the area. This includes reclaiming land around the lake, building wetlands and nurturing underwater greenery, in a bid to continuously enhance the lake's ecological capacity. In addition, we will work to achieve shared prosperity among the community, the lake and the cities, enriching the charm of Jiangsu and bolstering its green development with the captivating scenery of Taihu Lake. By creating a better ecological environment and presenting a more advanced development pattern, we will offer Taihu Lake's solution to new quality productive forces.

We believe that through our sustained efforts, the governance of Taihu Lake will accumulate experience for thorough treatment of shallow lakes and long-term ecological improvement of large lakes, and set a benchmark for the governance of other lakes across the country. Thank you.

CNR:

We know that Jiangsu province, located by the sea, boasts rivers and lakes. The Grand Canal, a historic shipping route, runs through Yangzhou, and a major foreign trade port thrives in Taicang. My question is how Jiangsu province will leverage these strengths in the next phase of developing its water transportation. Thank you. 

Xu Kunlin:

Thanks, I will answer this question. When looking at a map, we find Jiangsu is the only province in China that is located by the sea and, at the same time, boasts large lakes and rivers. It has unique conditions for waterway transport. Lately, the CPC Jiangsu Provincial Committee and Jiangsu provincial government specifically held a meeting with the aim of building Jiangsu as a waterway transport hub. We launched a three-year action plan, starting this year, to build Jiangsu as a waterway transport hub with more distinctive characteristics. We will fully implement the requirements of the CPC Central Committee and the State Council to further reduce the cost of logistics in the whole of society. The cost of water transport is relatively low, roughly one-third the cost of train services and one-seventh of road transports. Moreover, it is greener. It is the right time to comprehensively develop water transport in Jiangsu with the emphasis on inland waterways and ports.  

The first is the construction of inland waterways. Jiangsu's total inland waterway mileage has reached 24,000 km, roughly one-fifth of the nation's total. Its total mileage, network density and length of high-grade waterways rank top in the country. We make the construction of Grade II waterways the top priority. Grade III waterways allow the passage of ships with a maximum load capacity of 1,000 tons, and Grade II waterways 2,000 tons. The Beijing-Hangzhou Grand Canal runs through Jiangsu from north to south. We will firstly construct the entire Jiangsu section of the Grand Canal into Grade II waterways. We will advance the coordinated development of multi-modal transport such as combining shipping with train services or road transport. We will build a high-grade waterway network featuring "two vertical and five horizontal axes," and the length of Grade II waterways and above is expected to be close to 1,100 km by 2025. Two crisscrossing arteries of Grade II waterways will be formed, with the Yangtze River running west to east and the Grand Canal north to south. And ships with a maximum load capacity of 2,000 tons will be able to pass smoothly through the Jiangsu section of the Grand Canal 24 hours a day. When we first started to comprehensively develop water transport in Jiangsu, inland cities such as Huai'an and Suqian have seen benefits. We are able to expand our industrial development from the coastal areas and areas along rivers to the inland regions. A large number of industrial projects have been launched in inland regions. A total of 12 projects with an investment of 10 billion yuan are under construction in Huai'an alone. 

The second is the construction of ports along Yangtze River and inland ports. The Jiangsu section of the Yangtze River assumes more than 70% of the cargo volume of the river's total, which makes these waterways golden waterways and diamond sailing areas in the true sense. As the first port along the Yangtze River, Taicang Port handled 8.04 million TEUs last year, taking a lead among ports along the river for the fourteenth straight year. The previously small river port has become a big hub. We will seize the opportunity of strategy for promoting integrated development of the Yangtze River Delta, advance the integrated development of Shanghai Port and Taicang Port and the coordination of Taicang Port with Ningbo Port, in order to increase the number of TEUs handled by Taicang Port to 10 million as soon as possible and promote its transformation from a logistic port to a goods trade port. We will build the port into a major north wing of the Shanghai international shipping center and a demonstration of multi-modal transport in the Yangtze River Delta.  

The third is the construction of coastal ports. Lianyungang Port is the only one in the province boasting a 300,000-ton-class waterway and one of the few in China that has a terminal for 400,000-ton-class ore carriers. We vigorously advanced this port's cooperation with Shanghai Port. In 2023, over 100,000 TEUs were transported by the waterway between Liangyungang Port and Shanghai Port, an increase of almost 50%. Lianyungang Port has cooperated with land ports of seven provinces in central and western China, serving as their outlet to the sea, and a total of 806 trains departed or arrived at the port along the China-Europe Railway Express last year, increasing by 10.7%. We are boosting unmanned operations, digital empowerment and further facilitating customs clearance, constantly reinforcing services and support for central and western China and regions along land bridges. Central Asia places a high value on Lianyungang Port. Last year, when I visited Central Asia and met their leaders, they told me that they had visited Jiangsu province five times and every time they came to Lianyungang. Thanks.

Chen Wenjun:

Because of time limitations, we will now take the last two questions.

Beijing Youth Daily:

My question is related to people's livelihood, and employment is the most basic component of people's wellbeing. Now is the peak time of job hunting for fresh college graduates. So, what measures has Jiangsu rolled out to attract college graduates to work in the province? Thanks. 

Fang Wei:

College graduates are a valuable human resource. This year, the number of college graduates in Jiangsu is expected to exceed 730,000. The province has always advocated literacy and education, and values talent very much. We always spare no effort to attract college graduates, specifically in three aspects.

The first is the number of job opportunities. Since last year, we have released 9.5 million jobs on public employment service platforms. Last year, the province created 1.38 million new urban jobs, accounting for one-tenth of the nation's total. The high number of jobs has paved the way for college graduates' employment in Jiangsu. We will launch more job fairs specifically targeted toward college graduates and will organize both online and offline recruitment activities spanning all categories and levels, delivering Jiangsu's job opportunities to college graduates.  

The second is the increment of supplies. In recent years, Jiangsu has been actively expanding the employment capacity of traditional industries while vigorously cultivating advanced industrial clusters. The development of emerging strategic industries and forward-looking planning for future industries, such as software and information services in Nanjing, high-end manufacturing in Suzhou, biomedicine in Suzhou, Taizhou and Lianyungang, Wuxi's Internet of Things and integrated circuits and new energy in Changzhou, have created numerous job positions with high technical content and high added value in human resources. In the past year alone, more than 1 million high-quality jobs were created and made available, enabling graduates seeking employment in Jiangsu to find suitable positions where they could apply what they have learned.

The third is the quality of services. For university graduates who have just left school and stepped into society, there is a greater need for policy support and services that are understanding at this time. Various places in Jiangsu have successively introduced sincere and benevolent policy packages, such as youth talent stations, job interview subsidies, living allowances and talent housing vouchers. We will deepen the alignment with the needs of industries and enterprises, continuously optimize support policies and build a full-cycle growth ladder for graduates. We will further increase the supply of education, housing and healthcare, ensuring that graduates can stay and integrate smoothly into Jiangsu.

Taking this opportunity, we hereby extend an invitation to university graduates nationwide, warmly welcoming everyone to choose Jiangsu and showcase their talents in building a "strong, rich, beautiful and high-quality" new Jiangsu. Thank you. 

21st Century Business Herald under Southern Finance Omnimedia:

We have noticed that Jiangsu has introduced a series of policy measures in recent years to optimize the business environment from various aspects such as market supervision and government services. Could you please tell us what other reform measures will Jiangsu take next to continue building a first-class business environment?

Xu Kunlin:

Thank you, I'll take this question. As a leading region and economic powerhouse in the eastern part of China, Jiangsu boasts enormous industrial technology strength, abundant scientific and educational resources and a vast market scale. It has been rated as the province with the best business environment for five consecutive years. A strong business environment requires a comprehensive approach, and having a well-supported and complete industrial ecosystem is crucial. Jiangsu's manufacturing sector covers all 31 major categories with its added value accounting for 14.1% of the country's total and about 4% of the global total. This makes it one of the provinces with the most diverse manufacturing categories, the most complete industrial chains and the most comprehensive supporting facilities. Considering power batteries as an example, Jiangsu has achieved full coverage of the industrial chain. During my visits to many representatives emphasized that if you invest in Jiangsu, 70% of the supporting facilities can be completed locally. There is an ample supply of capital. Last year, Jiangsu added 2.93 trillion yuan in domestic and foreign currency loans, ranking first in the country for two consecutive years with the financial sector's comprehensive strength being among the top in the nation. This year, the provincial and city governments' finances, along with state-owned assets, will jointly establish an emerging strategic industries cluster fund exceeding 100 billion yuan, which will soon be allocated. Jiangsu is rich in talent resources, boasting 168 universities, 2.62 million students and more than 1.17 million R&D workforce. The total number of talent resources exceeds 14 million. We have an excellent cultural environment with continuously improving levels of basic public services such as education, healthcare and elder care. We are promoting the more quality medical resources being made available and weighted toward the community level, enhancing the provision of top-notch educational resources and constructing more quality schools and hospitals close to people's homes. There is no such thing as a perfect business environment. It is a continuous improvement process. We will advance the development of the "five aspects" - policy, market, government service, rule of law, and culture - in an integrated manner, striving to create a "paradise for entrepreneurs and a heaven for innovators."

On the one hand, we are creating a policy environment that delivers a stronger sense of gain. At the beginning of last year, Jiangsu was among the first in the country to introduce 42 policies aimed at promoting an overall improvement in economic operation, which were followed by 28 incremental measures in the middle of the year. We employed these measures to alleviate the burdens and difficulties faced by businesses, resulting in an accumulated total of 218.5 billion yuan in new tax cuts, fee reductions and delayed fee payments. This year, we will push for more government services to be accessible online in a "one-stop" manner, and for more beneficial policies for enterprises to be available "without application, for immediate and direct benefit." The subsidized interest for large-scale equipment upgrades mentioned earlier is an example; we are collaborating with banks so that enterprises don't need to apply and the banks instead will directly implement the policy. At the same time, we are committed to resolving past issues and maintaining credibility and promises. By deeply understanding and trusting enterprises, we commit to fulfilling our commitments to them by "keeping our word" and "turning words into actions."

On the other hand, we are working to create a more international investment environment. Last year, Jiangsu's actual use of foreign capital ranked first in the country, and its shares in January and February of this year has further increased. We have developed 18 high-value measures to ensure national treatment for foreign-invested enterprises and to enhance the convenience of residency and stays for foreign employees of these enterprises. Wuxi took the lead in "system integration" and introduced 10 convenient measures for foreigners coming to Wuxi, creating six convenient scenarios for entry and exit, payments, consumption, business and work, residence and travel, and education and medical care. We will also continue to align with high-standard international economic and trade rules and thoroughly implement Jiangsu province's regulations on promoting and protecting foreign investment, making Jiangsu one of the most appealing and competitive investment destinations globally.

Lastly, I would also like to invite each of you to visit Jiangsu and see it for yourself. This will help you learn more about it and promote it. Thank you all.

Chen Wenjun:

Thank you, Mr. Xu and other three speakers. Thank you to all the journalists in attendance. Today's press conference is now concluded. Goodbye.

Translated and edited by Xu Xiaoxuan, Zhou Jing, Liu Qiang, Guo Yiming, Zhang Junmian, Cui Can, Yuan Fang, Zhu Bochen, Wang Qian, Wang Yanfang, Liu Sitong, Zhang Rui, Li Huiru, Ma Yujia, Gong Yingchun, 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 Weizhong, deputy secretary of the Communist Party of China (CPC) Guangdong Provincial Committee and governor of Guangdong province

Mr. Zhang Hu, member of the Standing Committee of the CPC Guangdong Provincial Committee and executive deputy governor of Guangdong province

Mr. Ai Xuefeng, director general of the Guangdong Provincial Development and Reform Commission and director general of the Guangdong Provincial Office of the Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area

Mr. Tu Gaokun, director general of the Department of Industry and Information Technology of Guangdong Province

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date: 

March 29, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the fourth press conference in the series "Promoting High-Quality Development." Today, we are pleased to be joined by Mr. Wang Weizhong, deputy secretary of the Communist Party of China (CPC) Guangdong Provincial Committee and governor of Guangdong province, to brief you on the situation and answer your questions. The topic he will brief you on is "Guangdong's dedication to advancing high-quality development and spearheading Chinese modernization." Also present at today's press conference are Mr. Zhang Hu, member of the Standing Committee of the CPC Guangdong Provincial Committee and executive deputy governor of Guangdong province; Mr. Ai Xuefeng, director general of the Guangdong Provincial Development and Reform Commission and director general of the Guangdong Provincial Office of the Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area; and Mr. Tu Gaokun, director general of the Department of Industry and Information Technology of Guangdong Province.

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

Wang Weizhong:

Good morning, everyone. I am very pleased to brief you on Guangdong's promotion of high-quality development. First of all, I would like to express my heartfelt thanks for your long-term interest in and support for the economic and social development of Guangdong.

General Secretary Xi Jinping profoundly pointed out that as Guangdong takes the lead in reform and development, it will feel a deeper necessity and urgency to promote high-quality development. He earnestly hopes that Guangdong will focus its efforts on advancing high-quality development and play a demonstrative and leading role. Last April, during his fifth visit to Guangdong since the 18th CPC National Congress, the general secretary instructed Guangdong to spearhead Chinese modernization by focusing on high-quality development as the primary task and constructing a new development pattern as the strategic mission. This is to make the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) a strategic pivot for the new development pattern, a demonstration area for high-quality development and a leading area for Chinese modernization, which we summarize as "one pivot, two areas."

The CPC Guangdong Provincial Committee has fully implemented the guiding principles of the 20th CPC National Congress and the important speeches and instructions made by General Secretary Xi Jinping during his inspections of Guangdong, making specific deployments for the "1310" scheme, which entails anchoring the one overarching goal of leading the path forward, unleashing the three major driving forces of reform, opening up and innovation, and striving to achieve breakthroughs in 10 aspects. For two consecutive years, we have held the Guangdong High-quality Development Conference on the first working day after the Spring Festival, seizing the major opportunities presented by a new round of technological revolution and industrial transformation. We aim to accelerate the mutual promotion of dual strengths in industry and technology, develop new quality productive forces as Guangdong's strategic move and long-term plan, and strive to create a new Guangdong.

First, we must resolutely shoulder the responsibility of being a major economic province by truly taking on the main burden and strengthening the foundation for high-quality development. Guangdong is a major economic province, a populous province and a leading foreign trade province. Last year, our GDP reached 13.57 trillion yuan, accounting for one-tenth of the national total and ranking first in the country for 35 consecutive years. The total number of business entities in Guangdong exceeded 18 million, including 7.8 million enterprises, which accounts for one-seventh of the national total. We have issued policies and measures in a "fast, accurate and practical" manner to stabilize expectations, growth and employment. We are focused on expanding investment, promoting consumption, stabilizing foreign trade and striving to achieve the economic growth target of 5% for 2024.

Second, we aim to explore the building of the Guangdong-Hong Kong-Macao GBA as a lever to fully deepen reform and opening-up across the province, creating an important source of momentum for high-quality development. Since the release of the Outline Development Plan for Guangdong-Hong Kong-Macao Greater Bay Area five years ago, the central government has granted Guangdong significant opportunities, including the development of the GBA, the Shenzhen pilot demonstration zone, and key platforms such as Hengqin, Qianhai, Nansha and Hetao. Centered around the new positioning of "one pivot, two areas," we are working closely with Hong Kong and Macao to accelerate the construction of a world-class bay area, aiming to create the best-developed bay area. On March 1, the Hengqin Cooperation Zone started closed-loop operation, marking a crucial step toward the integration of Hengqin and Macao. The Shenzhen-Zhongshan Bridge and the Huangmao Cross-sea Channel are set to be completed and open this year, enabling one-hour connectivity between the major cities of the GBA.

Third, we are establishing a critical front for new quality productive forces, injecting strong vitality into high-quality development. Guangdong has 71,000 industrial enterprises above designated size and 75,000 high-tech enterprises, both of which rank first in the country. Guangdong also ranks first nationwide in all the categories of number of Patent Cooperation Treaty (PCT) international patent applications, regional development index of intellectual property rights (IPRs), volume of valid registered trademarks, and volume of valid invention patents. The region's innovation capacity has been the highest in the country for seven consecutive years. We adhere to the principle that the real economy is the foundation and manufacturing is the key, consolidating eight 1-trillion-yuan-level industrial clusters including new generation electronic information, green petrochemicals, smart home appliances, advanced materials, modern light industry and textiles, software and information services, modern agriculture and food, and automobiles. We are also accelerating the development of integrated circuits, new energy storage, new energy vehicles, the low-altitude economy and artificial intelligence (AI) into 500-billion-yuan-level and 1-trillion-yuan-level industrial clusters. We are speeding up the construction of a "basic research plus technological breakthrough plus results commercialization plus sci-tech finance plus talent support" full-process innovation chain, with the aim of building a globally influential industrial sci-tech innovation center.

Fourth, we have made utmost efforts to implement the High-quality Development Project for Counties, Towns and Villages (hereinafter, "High-quality Development Project") to address the unbalanced and insufficient development between urban and rural areas. Drawing on the experience of the Green Rural Revival Program in Zhejiang province, we have proposed the High-quality Development Project and set clear goals: initiating the project within a year, achieving preliminary results within three years, making significant changes within five years, and undergoing fundamental transformation within 10 years. We have remained committed to comprehensively expanding county economies, upgrading urban infrastructure, and promoting rural revitalization in an all-round manner. Additionally, we have facilitated the orderly transfer of industries both domestically and internationally, particularly from the Pearl River Delta to the east, west and north of Guangdong province. Our goal is to turn shortcomings into potential.

Fifth, we have made concerted efforts to promote ecological construction in Guangdong province, laying a solid foundation for high-quality development. Last year the province enjoyed good air quality on 94.8% of days, and its forest coverage has reached 53%. While we have made progress in the province's green transformation, we are now focused on making it more beautiful. We have firmly upheld the principle that lucid waters and lush mountains are invaluable assets. To achieve this, we have launched six major actions for ecological construction, focused on optimizing forest composition and structure, and actively and prudently worked toward peaking carbon dioxide emissions and achieving carbon neutrality. These efforts are aimed at creating bluer skies, greener lands and clearer waters in the province.

Sixth, we have remained committed to a people-centered approach and ensured that the benefits of high-quality development are shared by all in the province. We have launched 10 livelihood improvement projects, enhanced public service and social security systems, and worked hard to resolve the pressing difficulties and problems that concern people the most, with the aim of achieving common prosperity. The number of employed people in the province stands at around 70 million, accounting for one-tenth of the national total. Among them, 43.65 million are migrant workers, with an additional 1.17 million added last year. We will make every effort to ensure the employment of key groups and strive to make significant contributions. 

Friends from the media, spring has arrived in the Lingnan area and Guangdong is bustling with opportunities. We will make promoting Chinese modernization our utmost political task and uphold high-quality development as a fundamental principle of the new era. Our goal is to welcome the 75th anniversary of the founding of the People's Republic of China with outstanding achievements. We also invite you to visit Guangdong and report on its charming, vibrant, dynamic and innovative features. Guangdong, nestled between mountains and the sea, boasts stunning landscapes, numerous delicacies and a healthy and livable environment. 

That's all for my introduction. We are willing to answer your questions. Thank you. 

Chen Wenjun:

Thank you, Mr. Wang. Now the floor is open for questions. Please identify the news agency you represent before asking your questions. 

Beijing Youth Daily:

We noted that this year's government work report set the GDP growth target at around 5%. Mr. Wang just mentioned that major economic provinces should shoulder their responsibility by taking on the main burden. How will Guangdong assume this responsibility and contribute more to national development? Thank you.

Wang Weizhong:

Thank you for your question. As one of the major economic provinces, Guangdong must bear greater responsibilities, leading the way in economic development and making more contributions to the nation. Our target this year is 5%, and we are confident in achieving it. Our confidence stems from decisions made by the leadership of the CPC Central Committee. The Central Committee set the goals of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We have pursued economic development and high-quality development as our central task and redoubled our efforts to promote project investments. Last year, the province's industrial investment grew by 22.2%, maintaining double-digit growth for 36 consecutive months. Investment in technological upgrades grew by 22.4%, the highest in the past six years. This year, Guangdong has allocated 1 trillion yuan for key provincial construction projects and over 320 billion yuan for industrial projects. The province is also accelerating the construction of 55 major manufacturing projects with investments exceeding 5 billion yuan each, and planning a large number of high-quality projects for future implementation. In 2023, we encouraged over 9,300 enterprises to undergo technological transformations and more than 5,000 industrial enterprises above designated size to undergo digital transformation. Building on last year's success, we aim to promote technological upgrades for over 10,000 industrial enterprises and digital transformation for 9,200 industrial enterprises above designated size. Our confidence comes from the vibrant market and a surge in popularity. Last year, the number of market entities in Guangdong increased by 1.728 million, reaching 18 million. Among them, the number of self-employed individuals rose by 1.11 million, exceeding 10 million, and the total number of enterprises reached 7.8 million, accounting for one-seventh of the national total. In the first two months of this year, an additional 330,000 market entities were established, including 182,000 self-employed individuals and 148,000 enterprises. With a population exceeding 150 million, Guangdong received 777 million tourists last year, generating tourism revenue of over 950 billion yuan, ranking first in the country. During this year's Spring Festival holiday, Guangdong received 76.07 million visitors, up 68%, with the revenue of the province's tourism market growing by 160% to 69.4 billion yuan. Guangdong is experiencing a surge in popularity. From January to February, Guangdong's economy showed a momentum of rebound and improvement, with its industrial sector, consumption, investment and total imports and exports rising by 10.6%, 6.1%, 4.3% and 24.9%, respectively.

We will seize every favorable opportunity, take advantage of all favorable conditions and work as much as possible to consolidate and build momentum for economic recovery and growth. In terms of serving enterprises, Guangdong helped them save an additional 200 billion yuan last year. In 2024, the province will launch a number of new enterprise-friendly policies in order to reinforce the principal position of enterprises in innovation and to reduce the costs of logistics, bringing more tangible benefits to enterprises. The CPC Central Committee has deployed a new round of large-scale equipment upgrades and trade-ins with consumer goods, which is quite in line with conditions in Guangdong. Guangdong is both a major manufacturing and consumption province. We are stepping up efforts to formulate implementation plans and supportive policies. We will adhere to the market-based approach, promote government guidance, increase fiscal, tax, financial and production support, and promote the advancement and transformation of equipment in seven major fields, with a focus on saving energy and reducing carbon to ultra-low emissions, safely manufacturing products, and promoting digital transformation and intelligent upgrades. We will carry out trade-ins of consumer goods including automobiles, household appliances and home decorations in order to deliver more tangible benefits from policy dividends. We will make a good start in the first quarter, achieve good results in the first half of the year and deliver an excellent performance throughout the year. Thank you.

CRNTT:

Five years ago, the Outline Development Plan for Guangdong-Hong Kong-Macao Greater Bay Area was released. What results have been achieved in the past five years? What other measures will be taken to promote the construction of the GBA? Thank you.

Zhang Hu:

Thank you for your questions and your attention to the construction of the Guangdong-Hong Kong-Macao GBA. Over the past five years, Guangdong has always kept in mind General Secretary Xi Jinping's earnest expectations, insisted on taking the Guangdong-Hong Kong-Macao GBA as our key work, and collaborated with Hong Kong and Macao to actively promote its construction, which has achieved remarkable results. The achievements are mainly apparent in five areas:

First, the comprehensive economic strength has reached a new level. The combined regional GDP of the GBA increased from 10.8 trillion yuan in 2018 to over 14 trillion yuan in 2023, contributing to one-ninth of China's GDP within less than 0.6% of the country's landmass. The real economy has seen better development. Guangdong now owns eight 1-trillion-yuan industrial clusters in areas such as new generation electronic information and green petrochemicals.

Second, our capacity for scientific and technological innovation continues to grow. We have made comprehensive efforts to build the GBA into an international sci-tech innovation center, a comprehensive national science center, and a magnet for high-level professionals. National major projects such as the Pengcheng Laboratory and the Guangzhou Laboratory have been established in the area. At present, there are 75,000 national-level high-tech enterprises in this area, including a number of leading technology companies such as Huawei, Tencent, BYD, Midea and Gree. The Shenzhen-Hong Kong-Guangzhou technology cluster has ranked second in the world for four consecutive years. In terms of comprehensive capacity of regional innovation, Guangdong has ranked first nationwide for seven consecutive years.

Third, the internal and external communication networks have been improved at a fast pace. Guangdong's high-speed railway has 2,838 kilometers of operation mileage, and the public transit system in the GBA continues to improve. The Hong Kong-Zhuhai-Macao Bridge (HZMB) has been completed and is functional, so travel time between major cities in the GBA is now at most an hour. The annual passenger throughput within the GBA airports exceeds 280 million, and the annual container throughput of the local ports exceeds 85 million TEUs. Its shipping network covers major cities and key trade ports worldwide.

Fourth, the construction of major cooperation platforms has been accelerated. The tax policy of "opening up the first line and controlling the second line" in Guangdong-Macao In-Depth Cooperation Zone in Hengqin, Zhuhai city has been implemented in a smooth and orderly fashion since it took effect on March 1 of this year. (The "first line" refers to the border between Hengqin and the Macao Special Administrative Region and the "second line" refers to the border between Hengqin and other parts of the Chinese mainland.) Tax policy dividends benefit Guangdong and Macao; Qianhai in Shenzhen has introduced China's first investor protection regulations and has actively promoted cooperation with Hong Kong in modern service industries such as finance and law; the three exchanges — the Guangzhou Futures Exchange, the Guangzhou Shipping Exchange, and the Canton Data Exchange — have been established in Nansha. A comprehensive service base has been inaugurated and in operation to help Chinese companies "go global." The Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone is gaining momentum.

Fifth, market integration is gradually improving. A number of landmark projects such as the "Hong Kong and Macao Medicine and Equipment Connect" policy, the "Bay Area Social Security Service" program, the Cross-boundary Wealth Management Connect Scheme, and Cross-border Public Services have been implemented. Since the implementation of the "Northbound Travel for Macau Vehicles" and "Northbound Travel for Hong Kong Vehicles" schemes, the number of vehicles solely registered in Hong Kong and Macao, or so-called single-plated vehicles, which pass through the Zhuhai Highway port of the HZMB, has exceeded 2 million. The three places jointly announced a total of 183 GBA standards covering food, traditional Chinese medicine, elderly care and other fields.

Going forward, we will follow the new positioning of "one pivot, two areas" given to the GBA by General Secretary Xi Jinping and work with Hong Kong and Macao to actively build the GBA into a world-class bay area and one of the best developed bay areas in the world.

That's all from me for your questions. Thank you.

Le Label Diplomatique: 

Guangdong is a major province with foreign investments and trade. It plays an important role in China's opening up process. My question is: As a pioneer province, what measure will Guangdong take to further deepen international cooperation, including with Africa, to attract foreign investments and promote foreign trade development?

Wang Weizhong:

Thank you for your question. I will answer this question. As is widely known, Guangdong is a powerhouse in foreign trade, boasting a foreign trade-to-GDP ratio of 64%. Notably, Dongguan's ratio stands at 124% and Shenzhen's at 113%. Foreign trade and investment are pivotal in the Guangdong's development. Since the launch of reform and opening-up in 1978, Guangdong has spearheaded the processing trades including accepting customers' materials for processing, assembling parts supplied by clients, processing with supplied samples, and compensation trade. The province has also actively attracted foreign capital, advanced technology and management experience. This proactive approach has swiftly integrated the province into the international division of labor. In just over 40 years, Guangdong has evolved from a comparatively agrarian province to one of China's most economically vibrant and open regions. Last year alone, its foreign trade volume reached 8.3 trillion yuan with accumulated foreign investment exceeding $578 billion, accounting for one-fifth of the nation's total. Remarkably, foreign investment utilization has remained stable at over $20 billion for nine consecutive years, with more than 350 Fortune Global 500 companies having a presence across Guangdong.

In recent years, facing a complicated and challenging international environment, we have resolutely implemented the decisions and arrangements of the CPC Central Committee, vigorously promoted foreign investment and trade and issued a series of policies to stabilize foreign trade and investment. As a result, the scale and proportion of imports and exports, and the actual utilization of foreign investment, have remained stable. Particularly, despite various pressures last year, our imports and exports reached 8.3 trillion yuan, growing against the odds by 0.3%. Among the growth, cross-border e-commerce imports and exports reached 843.3 billion yuan, a growth of 25.2%, accounting for roughly 40% of the national total. Leveraging Guangdong's comprehensive industrial support, sound business environment and vast market potential, we have attracted investments exceeding $10 billion from companies like BASF, ExxonMobil and CNOOC Shell. CNOOC Shell's Phase III project commenced construction last year, while ExxonMobil's Phase I is set to commence production by the end of this year, and BASF's integrated project is scheduled for completion next year. Many foreign-funded enterprises have established research and development centers in Guangdong. We have held the Guangdong-Hong Kong-Macao Greater Bay Area Global Investment Promotion Conference for two consecutive years and conducted investment attraction events overseas. Last year, we held the Guangdong-Hong Kong-Macao Greater Bay Area and Europe Economic and Trade Cooperation Conference in Germany, achieving significant results. Over the past two years, we have signed a cumulative total of 1,700 projects during two investment promotion conferences. The total investment of those projects reached 4.7 trillion yuan. In January and February of this year, Guangdong established 2,982 new foreign-funded enterprises, a growth of 38.1%, demonstrating that Guangdong is the preferred and optimal destination for foreign investment.

Next, we will firmly pursue higher-standard opening-up, leveraging the synergies of the "five international linkages," which are foreign trade, investment, outsourcing, economic cooperation and talent introduction, in order to fully support the growth of foreign trade and investment.

First, we aim to enhance the quality and effectiveness of foreign trade. We will implement policies to stabilize foreign trade and promote growth, expand trade in intermediate goods, nurture new export growth drivers, such as the "new trio," namely, electric vehicles, lithium-ion batteries, and photovoltaic products, stabilize and enhance processing trade, promote the development of new forms of foreign trade and consolidate and expand diverse international markets. Africa is a significant trading partner with the total trade volume exceeding 270 billion yuan last year, marking a growth of 3.9% and accounting for 13.7% of the trade between China and Africa. Products such as mobile phones from Shenzhen, furniture from Foshan and lighting fixtures from Zhongshan are highly favored by African consumers. Notably, the mobile phone produced by Transsion Holdings are tailored specifically for the African market. I have personally visited this company, witnessing its widespread popularity among African consumers.

Second, we will promote coordinated development of domestic and foreign trade. We will ensure that products sold domestically are produced on the same production lines, meet the same standards, and are of the same quality as exported products, facilitating smooth transitions for businesses between domestic and international markets. This endeavor aims to amplify the reach of Guangdong's innovative technologies, high-quality products and branded services across the country.

Third, we will foster a world-class business environment that is market-oriented, law-based and internationalized, and advance institutional opening up. This includes fully implementing the negative list for foreign investment and service mechanisms for major foreign investment projects like the "through train " and "one-stop" service. Through more efficient and high-quality services, we aim to build the "Invest in Guangdong" brand. Next month, we will host the 135th session of the China Import and Export Fair, also known as the Canton Fair. We sincerely welcome merchants and friends from home and abroad to come to Guangzhou and participate in this event, achieving mutual cooperation and success.

CNBC:

Guangdong, known for its robust manufacturing and export sectors, is striving for high-quality development. Could you provide insights into the status of both high-end manufacturing within the province and exports from the province? What proportion do they constitute in overall local development? Additionally, what are the province's plans for advancing high-end manufacturing, particularly in preventing inefficient investments? Thank you. 

Tu Gaokun:

Thank you for your questions. Guangdong steadfastly upholds the real economy as its foundation with manufacturing as its backbone. The local manufacturing industry is both our "pillar" and "cornerstone." As a globally significant manufacturing hub, Guangdong's manufacturing enterprises of designated size achieved a total operating income of 17 trillion yuan in 2023, and value-added of the manufacturing sector accounted for 32.7% of GDP. When combined with manufacturing-related productive service industries, this figure exceeded 60%. Notably, in the first two months of this year, Guangdong's manufacturing enterprises of designated size saw a robust 10.8% year-on-year increase in value-added, signaling a clear trajectory toward more steady growth.

Guangdong, as a leader in foreign trade and investment, has maintained strong connections with global markets and industrial and supply chains which are characterized by mutual interdependence. Manufacturing of goods accounts for 95% of Guangdong's total import and export volume, with exports reaching nearly 5.4 trillion yuan in 2023, two-thirds of which are from the equipment manufacturing sector. In the first two months of this year, exports amounted to 878 billion yuan, a remarkable 27.2% year-on-year increase. Through collaborative partnerships with numerous foreign counterparts, Guangdong's manufacturing industry actively contributes to globalization, fostering mutual benefits and win-win outcomes.

We have always believed that there is no such thing as a "sunset industry," only "sunset businesses." Whether it is traditional industries that cater to basic necessities of life, emerging industries that explore new frontiers or future industries with their boundless possibilities, they are all essential for social development and equally important. Guangdong has been steering manufacturing toward the mid- and high-end in global value chains in recent years. We continue to promote industrial innovation through technological innovation, making breakthroughs in a series of key core technologies and products to meet the increasingly sophisticated demands of domestic and international markets. Guangdong is home to five state-level manufacturing innovation centers, including those focused on new energy storage, which will play an even greater role in the future. We continue to build the foundation of the real economy through industrial clusters and support the comprehensive development of 10 strategic pillar industries, 10 strategic emerging industries, and five future industries to create new growth engines such as biomanufacturing, commercial aviation and the low-altitude economy. We continue to empower the manufacturing industry with digital intelligence, and guide the digital transformation of the manufacturing industry from "point" to "chain" and expanding to "network," promoting artificial intelligence to empower new industrialization, accelerating the green transformation of production methods, and forming green production.

In this process, we are committed to encouraging all types of advanced and high-quality production factors to flow smoothly into high-efficiency, high-quality manufacturing fields and improving total factor productivity. At the same time, we are willing to continue working with our partners to provide diverse opportunities and choices for global investors and consumers. Thank you.

CMG: 

Guangdong is well-known as a national innovation hub and also a province that is home to a large number of market entities. How does Guangdong guide and give full play to the main role of enterprises in innovation? And how is it accelerating the aggregation of innovative elements and the transformation of innovation results?

Ai Xuefeng:

Thank you for your questions. Since the implementation of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area five years ago, Guangdong has achieved significant results in driving development through innovation. In this process, enterprises have played the main role, which is clearly reflected in the four figures of "90%" coming from enterprises, namely approximately 90% of R&D institutions, 90% of R&D personnel, 90% of R&D investment, and 90% of patent applications and approvals. Guangdong will continue to empower enterprises to play a leading role in innovation under the new circumstances, promoting leading technology enterprises to transform into ecological-oriented and platform-leading enterprises, cultivating a group of innovative "chain-leader" enterprises, strengthening specialized, refined, distinctive and new "little giant" enterprises, and accelerating the incubation of a batch of "new species" enterprises in new fields and new tracks to form a good model of close cooperation between upstream and downstream, and integration of innovation among small, medium and large enterprises.

Therefore, we will involve more enterprises in government decision-making on innovation. We will improve the mechanism of demand-oriented science and technology projects, and improve the normal communication mechanism with science and technology enterprises. We will urge enterprises to act as the "originators," "responders" and "evaluators" of technological innovation, and ensure that "those who can hear the sound of gunfire direct the operations on the ground."

We will allocate more innovation resources toward enterprises. We will promote greater openness and the sharing of major scientific and technological infrastructure with enterprises, as well as facilitating the flow of high-level research personnel into enterprises. We will vigorously develop the technology service industry, particularly by establishing a financing system that covers the entire lifecycle of funding needs for technology enterprises.

We will have enterprises take the leading role in tackling core technological challenges. We will increase the proportion of enterprise-led projects in provincial key R&D plans and major special projects to over 80%, give enterprises the right to formulate their own technical directions, and support enterprises as "contractors" to organize and carry out technical research.

We will empower enterprises to accelerate the transformation of scientific and technological achievements. Focusing on the needs of enterprises in the fields of integrated circuits, new displays, new energy storage, new materials, biomedicine and other fields, we will accelerate the construction of pilot platforms aimed at promoting the engineering and industrialization of cutting-edge technologies to facilitate the implementation and transformation of more scientific and technological achievements in Guangdong.

We will encourage innovative enterprises in the reform of science and technology systems and mechanisms. We will implement the policy of super deduction of R&D expenses, promote the demonstration application of scientific and technological achievements of a number of enterprises, accelerate the opening of application scenarios to small and medium-sized enterprises (SMEs) focused on technology, and create an ecosystem conducive to enterprise innovation. Thank you.

Hong Kong Bauhinia Magazine: 

The topic of business environment reform is of great concern to everyone. How will Guangdong further optimize the business environment and create good conditions for enterprise development? Thank you.

Zhang Hu: 

Thank you for your question, and thank you for your interest in Guangdong's business environment. In recent years, we have resolutely implemented the decisions and plans of General Secretary Xi Jinping and the CPC Central Committee, deepening reform of the business environment in key areas and at crucial links, and have achieved significant results. Guangdong has been recognized as the province with China's best reputation for business environment for four consecutive years, according to a report by the All-China Federation of Industry and Commerce (ACFIC) that evaluated the business environment of 10,000 private enterprises. The provincial government has also led the nation for the past five years in integrated administrative service capabilities. At present, the number of market entities in the province exceeds 18 million, of which 7.8 million are enterprises, accounting for one-seventh of the country's total.

Next, we will focus on the concerns of enterprises and the public, optimize the four environments and actively foster a world-class business environment that is market-oriented, law-based and internationalized. 

First, we will foster a centralized, efficient, competitive and orderly market environment. We will quicken our steps to serve and integrate into the unified national market, fully implement the policy of "entry unless on the list" and treat business ownerships of all types equally. We will further implement special measures to broaden market access in Shenzhen, Hengqin and Nansha, and take the lead in broadening market access in an orderly manner in the fields of biomedicine, education and culture, green and low-carbon development and applications of advanced technologies. 

Second, we will foster a well-regulated, convenient, open and transparent environment of government services. We have launched "integrated online services" and "one-stop processing", achieving a 94.07% online handling rate for provincial government services, with 92.63% of these services requiring no physical visits. Next, we will continue to deepen the reform of administrative review and approval procedures, improve the mechanism for regular communication between government and business, and introduce more preferential policies to provide one-stop life-cycle services for enterprises. 

Third, we will foster a fair and just legal environment conducive to healthy development. We will quicken our steps to study and introduce regulations on promoting high-quality development of the private sector in Guangdong province, ensuring legal protection for corporate property rights and entrepreneurs’ interests. We will further improve the diversified dispute settlement mechanism, promote "internet plus regulation" and credibility supervision, and see that businesses are undisturbed in their operations and their needs are addressed. 

Fourth, we will foster an open environment with smooth circulation and win-win cooperation. Leveraging the synergies of the "five international linkages," we will further pursue higher-level opening up. We will spend more efforts in building an open economic system to a higher level. We will implement the eight major steps to promote high-quality Belt and Road cooperation, and actively encourage Chinese enterprises to "go global."

That's my answer, thank you. 

Guangming Daily:

The unbalanced development between urban and rural areas and among different regions is a big challenge for Guangdong. Therefore, last year, Guangdong launched the "High-quality Development Project for Counties, Towns and Villages." How has it worked out in the past year? What’s the next step? Thank you. 

Wang Weizhong:

Thank you for your questions. I will address this issue. Since the 18th CPC National Congress, General Secretary Xi Jinping has noted that the unbalanced development between urban and rural areas and among different regions is the biggest challenge of Guangdong's high-quality development, asking us to strengthen top-level design and make constant efforts to turn weak links into potential strengths. Successive CPC Guangdong Provincial Committees and provincial governments have undertaken extensive work in this regard, significantly improving the developmental conditions within eastern, western and northern Guangdong. 

Since the 20th CPC National Congress, based on the good foundation laid in the past, the CPC Guangdong Provincial Committee and the provincial government have learned and applied the experience of the project "Green Rural Revival Program," and have proposed to implement the "High-quality Development Project for Counties, Towns and Villages" in Guangdong. We have made the project a top priority amid our efforts to promote Guangdong’s high-quality development. The project aims to coordinate the advantages of the county, the characteristics of the towns and the resources of the villages by pooling resources and strengthens of all sectors in order to promote the development of the county, the towns and the villages, and to achieve a good start to the 14th Five-Year Plan. The county GDP grew by 5.2% last year, 112 were included on the list of China’s top 1,000 towns, and the income ratio between urban and rural residents narrowed to 2.36:1. For example, Gaozhou, a county-level city under Maoming city, has driven county-wide revitalization by focusing on industrial development. Last year it attracted 74 new projects with a total investment of more than 8 billion yuan. This led to a 43.5% increase in industrial investment, driving the county's GDP to over 76 billion yuan.

Next, we will accelerate the construction of the "High-quality Development Project for Counties, Towns and Villages." Counties serve as the vanguard, with robust county economies bolstering city economies. We will accelerate new urbanization initiatives with a focus on county seats, and take tailored measures to cultivate industries that empower the county and enrich its citizens, such as food processing and culture and tourism sectors, thereby enhancing the county’s overall capacity to support development. Meanwhile, we will intensify efforts to improve county-level facilities and conditions for education and culture. Each county in Guangdong is distinct, necessitating a path of specialized and differentiated development. Whether it is industry, agriculture, commerce or tourism, we develop according to local strengths. For example, coastal counties with abundant marine resources are encouraged to develop the maritime economy, such as portside industries, marine pastures and seaside tourism. Towns act as nodal points, playing an important role in connecting cities and villages. We will speed up the creation of comprehensive service networks, thriving business hubs and convenient living environments, transforming towns into centers of rural governance, service and economic activity. Villages are the bedrock. We must give priority to developing rural industries and improving the living environment. In particular, we should better develop local specialties to create more renowned "Cantonese brand" agricultural products, boosting farmers’ incomes and wealth. For example, Maoming city has vigorously developed its distinctive agricultural sectors, including lychee, longan, and orange, with the total agricultural output exceeding 100 billion yuan for three consecutive years. We will continue to carry out projects that address weak links in rural areas, make great efforts to manage rural domestic wastewater and accelerate the construction of a beautiful and harmonious countryside that is ideal to both live and work in.

We believe that through continuous efforts, we will meet the target of realizing effectiveness in three years, significant changes in five years, and substantial transformation in 10 years, achieving a brand-new urban and rural landscape across Guangdong province and prosperity for all. Thank you.

Nanfang Daily, Nanfang+:

We understand that biomanufacturing is considered a new industrial revolution in the manufacturing sector and has attracted significant attention. May I ask what considerations Guangdong province has in developing biomanufacturing? Thank you.

Ai Xuefeng:

Thank you for your question. Biomanufacturing utilizes biological principles and technologies to produce products. It is currently in the early stages of an industrial boom and is rapidly expanding into critical sectors such as food, medicine, materials and energy. This expansion is making it a focal point of competition among the world's major economies.

During the process of promoting mutual reinforcement between technology and industry, Guangdong province has planned for the biomanufacturing industry with foresight. We have established world-leading infrastructure for synthetic biotechnology. Big science facilities have provided support for both basic and applied basic research in synthetic biology and have been fully open and shared during construction to serve enterprises and industrial development. We have built an innovative service platform for biomanufacturing. We have established open innovation carriers, including synthetic biology innovation and entrepreneurship complex, industrial innovation center, and public service platform. Notably, last year, Guangdong province was approved to build a national biomanufacturing industrial innovation center in Shenzhen Guangming Science City, which is currently the only national-level industrial innovation hub in this field. We have nurtured a number of "new species" enterprises in biomanufacturing. In the past three years, one of every two synthetic biology companies in the country has settled in Guangdong province. At the same time, we have also achieved a series of innovative achievements. For example, the research conducted by the Shenzhen Institute of Advanced Technology of the Chinese Academy of Sciences on converting carbon dioxide into glucose and fatty acids, along with the world's first construction of the most comprehensive atlas of human immune cell development, have been included among the top 10 domestic scientific and technological advancements in the past two years.

Next, we will seize the opportunity to further accelerate the development of the biomanufacturing industry. First, we will optimize its development layout. We will promptly formulate an action plan for the industry's high-quality development, design key directions and fields based on technological and market maturity as well as Guangdong province's innovative advantages and industrial needs, and deploy major platforms and projects. Second, we will promote technological research and development in the biomanufacturing industry. We will coordinate special funds for technological innovation and advanced manufacturing, increase support for frontier and disruptive technological innovations in biomanufacturing, and build a globally leading source of innovation for biomanufacturing. Third, we will promote the industrialization of biomanufacturing research results. We will accelerate the construction of a number of pilot-scale testing platforms, further strengthen scenario applications, and promote biomanufacturing to empower key areas such as medicine and health, industrial materials, agriculture and food, new energy, and green environmental protection. Thank you.

Hong Kong Economic Herald:

The governor just mentioned that Guangdong province's forest coverage rate has reached 53%, and the province is advancing the Green and Beautiful Guangdong Campaign. Could you please tell us what measures will be taken next? Thank you.

Zhang Hu:

Thank you for your question and your interest in the Green and Beautiful Guangdong Campaign. The province is green throughout the year, and as you mentioned, the forest coverage rate has now exceeded 53%. In recent years, the province has resolutely implemented Xi Jinping Thought on Ecological Civilization. Committed to the overall goal of "being at the forefront," the provincial Party committee has decided to deeply promote the Green and Beautiful Guangdong Campaign. The aim is to promote high-quality development and take the campaign as a strategy for advancing ecological civilization. The campaign practices the concept that "lucid waters and lush mountains are invaluable assets," focusing on high value-added and green development. We strive to make Guangdong province a demonstration and window for practicing Xi Jinping Thought on Ecological Civilization. Moving forward, we will continue to promote "six major actions."

First, we will implement a precise forest quality improvement action. We will carry out in-depth optimization of forest stands and the improvement of forest forms. This year, we aim to complete the tasks of optimizing and enhancing 2 million mu of forest stands and nurturing and improving 2 million mu of forest. We will tap into the economic benefits of precise forest quality improvement and vigorously develop related economies such as homestay tourism and forest wellness.

Second, we will implement an action for integrating and enhancing urban-rural greening and beautification. Currently, our province has established 193 demonstration sites for the Green and Beautiful Guangdong Campaign, achieving full coverage of county-level administrative areas. Next, we plan to fully develop national forest cities and national garden cities and combine the "Hundred, Thousand and Ten-Thousand Project" to focus on promoting greening and beautification efforts in counties, towns and villages.

Third, we will launch an initiative to promote ecological conservation of protected areas. We will step up efforts to develop the Nanling National Park and Danxia Mountain National Park, building 104 demonstrative protected areas; develop the South China National Botanical Garden to a high standard; and build the International Mangrove Center in Shenzhen with a 10,000 mu (666.67 hectares) demonstration zone for mangrove forest.

Fourth, we will implement an action plan to improve the quality of ecological green corridors. We will increase green coverage along expressways, national and provincial highways and railways; make coordinated efforts in the construction of forest trails, greenways, green belts as well as ancient post roads; achieve integrated development among neighboring ancient villages, historical sites and natural parks; and foster stronger connections between networks of forests, water and roads, so as to build a green and beautiful ecological network with greater connectivity.

Fifth, we will launch an initiative to strengthen protection of ancient and famous trees. Efforts will be made to carry out surveys and monitor these trees, while real-time and dynamic management will be implemented. We will rescue and preserve these ancient and famous trees to retain people's nostalgic memories about the past.

Sixth, we will carry out a provincial initiative to encourage people to care for, plant and protect green spaces. Centering on the theme of "I Plant Trees for Guangdong," we will mobilize all sectors of society to grow and protect plants. Through joint actions, we will create a beautiful homeland with abundant green plants that can be seen throughout the whole year. 

Ecological development under the Green and Beautiful Guangdong Initiative is a long-term project. We will take this goal as guidance to protect the fields, trees, rivers and mountains of Guangdong, build a pilot zone for the Beautiful China Initiative, and foster pacesetters for green and low-carbon development, so that green ecological advantages can be transformed into high-quality development advantages. Thank you.

21st Century Business Herald:

Recently, the State Council has taken steps to promote large-scale equipment upgrades, with a focus on bolstering the technological transformation of key industries. What has the Guangdong government done in terms of the transformation and upgrading of enterprises? And what other specific measures will be taken next? Thank you.

Tu Gaokun: 

As you are all aware, the State Council is promoting large-scale equipment upgrades. Yesterday, the State Council held a video conference to make arrangements, which provided a good opportunity for us to bolster technological transformation. Technological upgrading is an ongoing theme in enterprise development, and Guangdong has long been committed to promoting technological transformation and equipment upgrading. In terms of policies, it has issued regulations and policies such as the "Regulations on Promoting High-quality Development of the Manufacturing Industry," "Opinions of the Guangdong Provincial Committee of the Communist Party of China and the People's Government of Guangdong Province on Promoting the High-quality Development of Guangdong as a Strong Manufacturing Powerhouse" and "Circular on Printing and Issuing 'Several Measures on Promoting Industrial Enterprises in Guangdong Province to Accelerate Technological Transformation under the New Situation'", and publicized these policies to nearly 7 million enterprises through "yst.gdzwfw.gov.cn," a platform for businesses to access government services. In terms of resources and factors, we have guided financial capital investment, established a mechanism for utilization of project land-use quota in advance, opened a "green channel" for energy conservation review, and accelerated the development of major technological upgrading projects, such as Maoming Petrochemical's refinery transformation and upgrading and ethylene quality improvement project, and Gree's intelligent equipment project. In terms of guidance and demonstration, we highlighted the creation of a batch of demonstration enterprises and projects with advanced technological reforms, clear achievements and strong industry driving force, and replicated and promoted a series of typical cases. For example, taking home appliances as a starting point, Foshan adopted a model of "major enterprise investment plus supporting facilities from industrial chain," and helped drive the digital transformation of more than 100 SMEs in the industrial chain through platform solutions. 

The above measures have achieved good results. As Mr. Wang just said, the growth rate of investment in industrial technological upgrading last year was the fastest since 2018 and increased another 22.8% from January to February this year. Many enterprises reported that after technological upgrading, their production efficiency increased more than 15% and production costs reduced by over 10%.

Next, we will continue to prioritize technological transformation as the most crucial element in maintaining the vitality of the manufacturing industry. We will regard it as one of the key projects in upholding the dominance of the manufacturing industry and our commitment to continuous small-scale technological improvements. We will continue to implement policies for technological transformation, fully promote large-scale equipment upgrades, and initiate actions for technological transformation and equipment renewal in Guangdong province to improve quality and efficiency. Moreover, we will implement projects to empower and enhance technological transformation, ensuring these policies yield substantial benefits for enterprises. We will continue to explore paths for enterprise technological transformation, implement digital transformation projects for industrial clusters and carbon-peaking actions in the industrial sector, promote the transformation and upgrading of industrial chains and supply chains, and continuously enhance the digital and green level of enterprises. We will continue to cultivate technological transformation entities and innovation carriers, implementing enterprise gradient cultivation plans, and enhancing our manufacturing collaborative innovation system. We will improve the quality and efficiency of manufacturing innovation centers and enterprise technology centers at all levels, thereby providing continuous technical support for the technological transformation of enterprises. Thank you. 

Cnr.cn:

I noticed that at this year's Guangdong Provincial High-quality Development Conference, it was proposed to accelerate the mutual promotion of industry and technology and vigorously develop new quality productive forces. This topic has attracted a lot of attention. As an economically powerful province, what considerations and plans do you have in this regard? Thank you.

Wang Weizhong:

Thank you for your question; I'll answer this one. As you mentioned, for the past two years, we have held the Guangdong Provincial High-quality Development Conference on the first working day after the Chinese New Year. Guangdong is a major province in terms of economy, manufacturing, and scientific and technological innovation. The added value of Guangdong's manufacturing industry accounts for one-eighth of the country's total. Last year, Guangdong province invested 460 billion yuan in research and development, accounting for 3.39% of its GDP. When it comes to developing new quality productive forces, Guangdong province is not only well-positioned, capable and confident, but also recognizes its responsibility to do so. We will develop new quality productive forces according to local conditions, promote industrial innovation through scientific and technological advancements, and integrate innovation into enterprises, industries and overall development.

For Guangdong province, the development of new quality productive forces relies on innovation and industry.

First, we need to adhere to a high level of self-reliance and strength in science and technology, accelerate the construction of a whole-process innovation chain, use disruptive and cutting-edge technologies to cultivate new industries, new models, and new driving forces, and build an industrial science and technology innovation center with global influence. Over the years, we have consistently invested more than one-third of provincial-level scientific and technological innovation funds in basic research. We have launched more than 10 batches of research and development programs in key areas, striving to overcome technological bottlenecks and develop more original and disruptive achievements. For example, in addressing weaknesses in high-end equipment and medical devices, we have promoted cooperation between enterprises, universities, and research institutes, overcoming difficulties in areas such as ECMO, high-end MRI equipment, and high-end surgical robots. To tackle the "chip shortage" problem, we have implemented the Powerful Guangdong-Made Chips initiative. This effort is attracting major projects in areas such as analog chips, sensors, and photomasks, aiming to build China's third hub of integrated circuits. In response to the "last mile" challenge in transforming and applying scientific and technological achievements, we have established several concept verification centers and pilot platforms, primarily serving small- and medium-sized enterprises. This will boost the application and promotion of more new technologies and products in Guangdong province, striving to build a modern, new Guangdong that advances, strengthens, and succeeds through innovation.

Second, we must transform and upgrade traditional industries, cultivate and strengthen emerging industries, arrange the development of industries for the future in advance, and build a modern industrial system that is more internationally competitive. Traditional industries should never be neglected. We encourage enterprises to speed up equipment updates and process upgrades, allowing trillion-level traditional industries such as textiles and clothing, food and beverages, and home appliances and furnishings to leverage their advantages and unleash new vitality. At the same time, we are vigorously developing emerging industries such as integrated circuits, new energy storage, new energy vehicles, offshore wind power, bio-manufacturing, and commercial aerospace. We are advancing the layout for future industries such as quantum technology, the life sciences, and artificial intelligence. We are opening up new areas and new paths for development, continuously shaping the development of new driving forces and new advantages. For example, in the field of low-altitude economy, Guangdong province has been at the forefront of research and innovation. Currently, Guangdong's consumer drones account for over 90% of the national market and more than 70% of the global market, with leading companies such as DJI, EHang and Xiaopeng. In addition, Shenzhen has released the country's first local regulations for the low-altitude economy. In February this year, the world's first cross-sea and cross-city electric "air taxi" made its first flight in Guangdong province. The journey from Shenzhen to Zhuhai takes only about 20 minutes by air, compared to approximately 2 hours and 45 minutes by car. It is expected to officially start manned flights by 2026, which will nurture a new trillion-yuan-level industry cluster in Guangdong province.

Leveraging well-developed industrial facilities, a strong supply of innovation, and rich application scenarios, now is the right time for Guangdong province to develop new quality productive forces with promising prospects. Talent is considered our most valuable resource. To attract this talent, we aim to build a "nest" that attracts "phoenixes." We are committed to drawing in talent, creating platforms for them, and gathering gifted individuals from around the world. We warmly welcome people to come to Guangdong to innovate, start their businesses, and realize their dreams. Thank you.

Chen Wenjun:

Thank you, Mr. Wang, and all the speakers. Thank you for coming, and with that, today's press conference is concluded. Goodbye.

Translated and edited by Zhang Rui, Wang Qian, Cui Can, Ma Yujia, Yan Bin, Wang Wei, Qin Qi, Wang Yanfang, Wang Mengru, Yang Xi, Liu Qiang, Wang Ziteng, Yuan Fang, Zhang Tingting, Zhang Junmian, Yan Xiaoqing, Zhou Jing, 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. Gong Zheng, deputy secretary of the Communist Party of China (CPC) Shanghai Municipal Committee and mayor of Shanghai

Mr. Hua Yuan, a member of the Standing Committee of the CPC Shanghai Municipal Committee and deputy mayor of Shanghai

Mr. Gu Jun, secretary-general of the Shanghai Municipal People's Government and director of the Shanghai Municipal Development and Reform Commission

Chairperson:

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

Date:

March 28, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the third press conference in the series "Promoting High-Quality Development." Today, we are glad to be joined by Mr. Gong Zheng, deputy secretary of the Communist Party of China (CPC) Shanghai Municipal Committee and mayor of Shanghai, who will brief you on the "five centers" initiative of Shanghai and accelerating the building of a modern socialist international metropolis with global influence, and then take your questions. Also present today are Mr. Hua Yuan, a member of the Standing Committee of the CPC Shanghai Municipal Committee and deputy mayor of Shanghai; and Mr. Gu Jun, secretary-general of the Shanghai Municipal People's Government and director of the Shanghai Municipal Development and Reform Commission.

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

Gong Zheng:

Ladies and gentlemen, friends from the media, good morning. It is a great pleasure to have the opportunity to brief you on Shanghai's high-quality development and its expedited efforts in building "five centers." On behalf of the CPC Shanghai Municipal Committee and the Shanghai Municipal People's Government, I would like to start by extending my deep appreciation for your long-standing interest in and support for the development of Shanghai.

The construction of international centers of economy, finance, trade, shipping and sci-tech innovation in Shanghai is not only an important mission entrusted to the city by the CPC Central Committee, but also the only path for Shanghai to achieve high-quality development. Since the 18th CPC National Congress, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, Shanghai has continuously facilitated the construction of "five centers" and seen remarkable progress in enhancing its urban functions and core competitiveness. In terms of building an international economic center, Shanghai's GDP reached 4.72 trillion yuan (about $663.7 billion) in 2023, continuing to rank among the top cities in the world. Regarding its international financial center construction, the turnover of Shanghai's financial markets hit a record high in 2023, exceeding 3,300 trillion yuan. Licensed financial institutions continued to gather in Shanghai, with the total number reaching 1,771 by the end of last year, including 548 foreign-funded ones. As for the development of an international trade center, in 2023, the total international trade volume of goods at Shanghai ports hit 10.7 trillion yuan, accounting for 3.6% of the world's total, maintaining first place among all cities worldwide. With respect to the city's establishment of an international shipping center, the container throughput of Shanghai Port also reached a record high in 2023 with 49.158 million twenty-foot equivalent units (TEUs), ranking first globally for 14 consecutive years. In addition, Shanghai's development of a sci-tech innovation center has seen three inspiring achievements: The city's total R&D expenditure reached around 4.4% of its GDP; the number of high-value invention patents per 10,000 people rose to 50.2; and the city secured fifth place in the latest Science and Technology Cluster Ranking by the World Intellectual Property Organization (WIPO).

On the new journey, we will thoroughly implement the guiding principles of General Secretary Xi Jinping's speech delivered during his visit to Shanghai, bearing in mind the Party's and the people's expectations and developing a stronger sense of mission and responsibility. Focusing on the primary task of facilitating high-quality development and the strategic task of creating a new development pattern, we will prioritize the building of the "five centers," ensure coordination in various aspects concerning socioeconomic development, and expedite the efforts to build Shanghai into a modern socialist international metropolis with global influence, so as to fully leverage the city's leading and exemplary role in developing a Chinese path to modernization.

First, we will accelerate efforts to build Shanghai into an international economic center focusing on improving its international standing and global influence in economic governance. We will continue bolstering the city's GDP, strive to create a modern industrial system, and pursue new quality productive forces based on unique local characteristics. We will emphasize the enabling role of sci-tech innovation, enhance further integration between sci-tech innovation and industrial innovation, and proactively advance new industrialization. We will adopt a coordinated approach to promoting the transformation and upgrading of traditional industries, bolstering the development of emerging industries, and developing future-oriented industries in advance, in a bid to create a group of world-class high-end industrial clusters.

Second, we will speed up Shanghai's development of an international financial center focusing on enhancing the internationalization of financial markets and bolstering their competitiveness and influence. We will coordinate with central financial authorities and thoroughly roll out high-level financial opening-up on the basis of enhancing the safety and manageability of the markets. We will further optimize four systems, namely those related to the financial markets, products, institutions and infrastructure. We will also make efforts in the five sectors of technology finance, green finance, inclusive finance, pension finance and digital finance, in order to provide better services to support the real economy, sci-tech innovation and Belt and Road Initiative (BRI) cooperation.

Third, we will ramp up actions to build an international trade center focusing on strengthening the city's role as a trading hub. We will thoroughly implement plans to upgrade free-trade zones in the city, taking the lead to establish institutional arrangements and supervisory models that align with high-standard international economic and trade rules such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA). We will also speed up and establish pilot cooperation zones regarding "Silk Road e-commerce," open demonstration zones for creative promotion of import trade, and establish the eastern hub international business cooperation zone, so as to expedite the development of new types of trading such as offshore trade, cross-border e-commerce and bonded maintenance.

Fourth, focusing on enhancing the global allocation of shipping resources, we will move faster to build Shanghai into an international shipping center. We will strive to address weaknesses in advanced shipping services, strengthen shipping insurance underwriting and service capabilities, explore innovative maritime arbitration models, and attract more shipping enterprises and other functional institutions to operate in the city. At the same time, we will accelerate the development of seaports, airports, cruise terminals, and shipping hub systems, and vigorously promote the smart and green transformation of the shipping industry.

Fifth, we will accelerate the transformation of Shanghai into an international sci-tech innovation center, emphasizing its role as a source and nurturing ground for sci-tech innovation. We will further pool national strategic strengths in science and technology, strategically plan and build major scientific and technological infrastructure, and strengthen the role of enterprises in promoting sci-tech innovation. Moreover, we will prioritize enhancing basic research capabilities in key areas, intensify efforts to achieve breakthroughs in critical core technologies, and facilitate the transformation and industrialization of scientific and technological advancements. We aim to seize control of pivotal segments in the industrial chain and secure a high-end position in the value chain.

As General Secretary Xi Jinping noted, Shanghai is a city of glory, innovation, openness, and aspiration. This serves as both heartfelt encouragement and a strong impetus for us. We will continue to give full consideration to both the domestic and international imperatives, aligning Shanghai's development with the central government's strategic positioning of the city, economic globalization, national development, and the overall plan for the development of the Yangtze River Delta. We will promote the city's spirit of "diversity, pursuit of excellence, open-mindedness and humbleness" and its character of "openness, innovation and inclusiveness." By comprehensively deepening reform and opening-up from a higher starting point, we will promote coordinated and synergized development, mutually empowering the construction of the "five centers." We will continuously achieve excellent results in the high-quality development of Shanghai's economy and society. This will enable us to welcome the 75th anniversary of the founding of the People's Republic of China with tangible actions and accomplishments.

That's all for my opening remarks. Next, Mr. Hua Yuan, Mr. Gu Jun, and I are ready to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mayor Gong, for your opening remarks. We will now move to the Q&A session. Please identify the media outlet you represent before asking your questions.

Science and Technology Daily:

I'm interested in the development of prioritized industries like integrated circuits, biomedicine, and artificial intelligence, as well as traditional industries like automobiles. I'm wondering what is the next step for promoting the development of these industries. What is Shanghai's plan to encourage the development of new quality productive forces? Thank you.

Gong Zheng:

Thank you. I'll take the questions. Developing new quality productive forces is key to Shanghai's high-quality development. We must strive to lead the way and stay ahead.

Overall, Shanghai has a solid foundation and various advantages in developing new quality productive forces. First, it boasts strong, comprehensive scientific and technological capabilities. Shanghai has gathered a significant number of national strategic scientific and technological forces, including national laboratories. There are currently 20 major scientific and technological infrastructure projects either completed, under construction, or planned for the future. Additionally, we have attracted prestigious research institutions, including the Tsung-dao Lee Institute and the Shanghai Institute for Mathematics and Interdisciplinary Sciences.

Second, Shanghai's industrial transformation and upgrading have been underway for quite some time. The city has largely shaped its industrial development around modern service industries as the mainstay, strategic emerging industries as the driving force, and advanced manufacturing as the backbone. In 2023, strategic emerging industries accounted for 43.9% of the total output value of industrial enterprises above designated size. 

Third, Shanghai boasts a large number of high-level professionals. We've been making substantial efforts to attract and retain top-tier talents, and particularly the three prioritized industries of integrated circuits, biomedicine, and artificial intelligence have attracted more than 800,000 talents. Shanghai’s integrated circuits talents account for approximately 40% of the national total.

Looking ahead, we will thoroughly implement General Secretary Xi Jinping's important instructions on developing new quality productive forces, promoting industrial innovation through sci-tech innovation, and applying more sci-tech achievements to specific industries and industrial chains to accelerate the development of new quality productive forces. Our focus will be on continuously improving the high-end, intelligent, green, and integrated development of industries in the following three aspects based on our inherent advantages.

First, we will promote the "2+2" strategy, emphasizing the consolidation of the advantages of traditional industries. As mentioned earlier, traditional industries such as automobiles, steel, and chemicals still take up a large proportion of Shanghai's economy, with some being advantageous industries that cannot be overlooked or abandoned. Therefore, we are focusing on promoting the deep integration of advanced manufacturing with modern service industries, with particular emphasis on producer services. Additionally, we are prioritizing the "two transformations" strategy, encouraging all industries, especially traditional ones, to undergo digital, green and low-carbon transformations. We aim to empower traditional industries through new technologies, models, and formats, transforming them into new quality productive forces.

Second, we will promote the "3+6" model to establish innovation hubs for emerging industries. The "3" refers to three pioneering industries designated to Shanghai by the CPC Central Committee: integrated circuits, biomedicine, and artificial intelligence. Last year, these industries collectively amounted to a total scale of 1.6 trillion yuan. We will continuously implement national strategic deployments, take up our mission and tasks, and initiate a new round of "Shanghai Solutions" to consistently achieve breakthroughs in key links and improve the resilience and security of industrial and supply chains. The "6" means six major industries with unique features and foundations in Shanghai. We will accelerate the development of four industry clusters in electronic information, life and health, automobiles, and high-end equipment, each with a scale of 1 trillion yuan. Additionally, we will develop two clusters in advanced materials and fashion consumer goods, each with a scale of 500 billion yuan.

Third, we will introduce the "4+5" scheme to nurture new engines for the development of future-oriented industries. The "4" denotes four new fields: digital economy, green and low-carbon, metaverse and intelligent terminals. The "5" refers to five future-oriented industries: healthcare, intelligence, energy, space, and materials. We have devised action plans and strategies to further enhance our deployment of disruptive technologies and cutting-edge sectors. Efforts will be made to achieve breakthroughs in core technologies in key fields and establish industrial development advantages in several subdivisions. Thank you.

Phoenix TV:

Shanghai has long been a magnet for foreign investment, and it has set its sights on becoming a premier global investment destination. Could you share some of the key initiatives Shanghai plans to launch to attract foreign investment? Thank you.

Hua Yuan:

Thanks for your question. Shanghai has always placed great emphasis on attracting and utilizing foreign investment. In recent years, we have amended and improved relevant policies to encourage multinational corporations to set up regional headquarters, introduced and implemented upgrade plans for foreign R&D centers, and issued a set of measures to stabilize foreign investment. The city's actual use of foreign capital has exceeded $20 billion for four consecutive years. Last year, that number surpassed $24 billion, setting another record high. We are particularly pleased to see new regional headquarters of multinational corporations and foreign R&D centers established in Shanghai every year. In 2023, 65 regional headquarters and 30 foreign R&D centers were newly established in Shanghai, bringing the total number to 956 and 561, respectively. This has helped Shanghai become the city with the most regional headquarters of multinational corporations on the Chinese mainland. At present, its accumulated actual use of foreign capital has exceeded $350 billion, with more than 70,000 foreign companies established and flourishing there. These data indicate that Shanghai is already one of the top choices both for foreign investment and the global industrial chain layout of multinational corporations.

In our view, foreign investors are optimistic about Shanghai largely because of its continuously improving business environment and expanding advantages in opening up. For example, the globally renowned pharmaceutical company Moderna established its presence in Shanghai last year. From contract signing to groundbreaking, it took just over three months. "Moderna speed" has become a new benchmark in the city for supporting major foreign projects. Guided by the action plan, which includes 24 specific pro-foreign investment measures unveiled by the State Council, we will implement the national edition of the negative list for cross-border trade in services and the latest negative list for foreign investment. We will promote "Moderna speed" throughout the city, ensuring that all foreign projects have guaranteed space, efficient approval processes, and timely services. Our focus will be on the following three aspects.

First, we will further expand opening up. By aligning with international high-standard economic and trade rules, we will steadily expand institutional opening up, lift all restrictions on foreign investment in the manufacturing sector, and further implement comprehensive trials for expanding openness in the service sector, so as to embrace global enterprises and talent with a more open mindset.

Second, we will intensify our efforts to promote foreign investment. We will continue to leverage the role of institutions and organizations like global partners for foreign investment, organize a series of overseas promotion campaigns titled "Invest in Shanghai, Share the Future," and encourage foreign enterprises to invest more in key fields such as green development, digital transformation and sci-tech innovation.

Third, we will focus on improving our capability to serve enterprises. We will optimize the dedicated team and service commissioner system for foreign projects and the service package system for key companies, hold government-enterprise roundtables, and resolve practical difficulties and problems for foreign businesspeople. We will also implement various measures to improve the business environment and provide more targeted and quality services, enabling foreign investors to have a stronger sense of gain. Thank you.

CCTV:

This year marks the 10th anniversary of Shanghai's efforts to establish itself as an international sci-tech innovation center. What kinds of breakthroughs has Shanghai made in sci-tech innovation over the past decade? What will the city do to enhance its role in driving sci-tech innovation? Thank you.

Gong Zheng:

Building Shanghai into an international sci-tech innovation center is a major national strategic task that General Secretary Xi Jinping personally planned, deployed, and promoted. Over the past 10 years, we have followed the arrangements of the central authorities, sustained the dual driving forces of sci-tech innovation and institutional innovation, and achieved significant improvements in comprehensive sci-tech strength and overall innovative efficiency. First, we have explored the frontiers of science and technology and realized several original achievements, such as the world’s first macaques cloned from somatic cells and the world’s first artificial single-chromosome eukaryotic cell. Second, in response to major national strategic demands, we have led 929 major national sci-tech projects, participating in the development of several assets of national strategic importance. These include the Tianzhou cargo spacecraft, the Shenzhou manned spacecraft, the Xihe solar exploration satellite, and the Zhurong Mars rover. Third, we have concentrated on economic development, playing an important role in production of the C919 large aircraft and the first domestically made large cruise ship, the Adora Magic City, and independently developed a number of major strategic products that rank among the most advanced in the world. Fourth, we have prioritized people’s lives and health and improved our capacity to research and develop innovative drugs and medical devices. Over the past 10 years, nearly one-fifth of the Class 1 innovative drugs and medical devices approved for market launch in China were developed in Shanghai.

At present, we are stepping up the transition from establishing the framework to strengthening functionality in building Shanghai into an international center for sci-tech innovation. We will thoroughly implement the arrangements and requirements of the CPC Central Committee, effectively enhance Shanghai's role as a cradle of sci-tech innovation, and strive to build the city into an important driver for developing national sci-tech strength.

First, we plan to strengthen entities engaged in innovation. Shanghai is home to over 80 national-level advanced sci-tech research platforms, many new-type research and development institutions, and more than 24,000 new high-tech enterprises. We should offer strong support for these innovative entities to grow rapidly, ensure that national laboratories and national key laboratories in Shanghai are constructed and utilized properly, improve the innovation system of high-level research universities, foster more leading sci-tech enterprises with strong creative capabilities, and quickly develop systematic strategic sci-tech strength.

Second, we aim to enhance innovation and achieve more breakthroughs. We will target cutting-edge technologies, emerging sectors, and key development trends, including the health sector, smart technologies, energy, and materials. We will take the initiative to map out major sci-tech projects. Innovation and technological breakthroughs originate from basic research. Shanghai is building itself into a pilot area for promoting basic research. We task strategic scientists with selecting, managing, tracking, and assessing talent, mainly focusing on selecting talent instead of projects and providing long-term and stable funding for outstanding scientists to advance basic research in high-risk and high-value fields.

Third, we will facilitate the transformation of sci-tech research achievements. The critical part addresses the issues involving platforms, funds, carriers, and services. We are considering establishing funds to guide sci-tech innovation and enhance coordination among various government funds set up for this purpose. This approach aims to guide more social capital to invest in early-stage companies, invest small, invest in hard technology, and invest for the long run. Meanwhile, we also plan to build several high-quality incubators, focusing on forward-looking and in-depth incubation to provide sci-tech enterprises with quality services through different stages of their development.

Fourth, we will establish networks for promoting openness and innovation. Shanghai has inaugurated the Pujiang Innovation Forum and the World Laureates Forum, among other platforms for international exchanges. We will further improve and leverage these important platforms, advance the development of the Yangtze River Delta community of sci-tech innovation, and try to be part of the global innovation network. We will also explore new paths and modes for international sci-tech exchange and cooperation and quickly shape a healthy and globally-competitive ecosystem for sci-tech innovation. Thank you.

ThePaper.cn:

Mr. Gong just said that Shanghai has ranked first worldwide for 14 consecutive years in terms of container throughput. However, I have learned that Shanghai still has some work to do to catch up with London and Singapore in the shipping service sector. So, how does Shanghai plan to improve itself in this regard? Thank you.

Hua Yuan:

Thank you for your question. Mr. Gong discussed this subject in his opening speech, and I will add some details.

You all know that Shanghai had essentially established itself as an international shipping center by 2020. The city boasts various resources and elements for developing the shipping industry, well-developed shipping service functions, an excellent business environment, and efficient shipping and logistics services. Currently, we are focused on improving this international shipping center. The most important task is to quickly address the weaknesses in high-end shipping services to comprehensively enhance the global allocation of shipping resources. By making breakthroughs in high-end shipping services, we plan to further strengthen Shanghai’s role as an international shipping center and promote the digital, intelligent, and green transformation of the shipping industry to make a greater contribution to implementing major national strategies. This involves work in three aspects:

First, we should improve services. We should make efforts to develop shipping-related insurance, maritime arbitration, and other high-end shipping services. Regarding shipping-related insurance, we aim to leverage the construction of an international reinsurance center, facilitate innovation in shipping-related insurance products and business models, and enhance the underwriting capacity of shipping-related insurers in the global market. In terms of maritime arbitration, we will fully implement the Regulations of Shanghai Municipality on Promoting the Development of an International Commercial Arbitration Center enacted at the end of last year, research ad hoc arbitration, and offer support for overseas arbitration and dispute settlement organizations to set up and operate branches in Shanghai, and encourage business entities to prioritize Shanghai as the preferred place for dispute settlement.

Second, we will strengthen the hub. Generally speaking, we will continue to improve the construction of the "three ports and one system," which includes seaports, airports, cruise ports and the collection and distribution system. We will accelerate the development of significant projects, such as the Xiaoyangshan North Operation Area, Shanghai East Railway Station, and the fourth expansion phase of Shanghai Pudong International Airport. In addition, we will step up efforts to develop multimodal transportation, including water-to-water transfer and sea-rail intermodal transport, and actively support the growth of the cruise economy.

Second, we will promote transformation, focusing on both smart and green transformation. In terms of smart transformation, by focusing on blockchain technology, we aim to enhance Shanghai's international container transportation service platform. We will accelerate the building of a demonstrative platform for piloting the shipping trade digitalization. Regarding green transformation, our priority is to advance the establishment of a green shipping corridor between Shanghai Port and Los Angeles Port. Additionally, we are expediting the development of clean fuel supply chains for ships, including green methanol and LNG. Furthermore, we intend to encourage the adoption of eco-friendly transportation methods, such as pure electric vessels.

That's all for my answer, thank you.

Southern Metropolis Daily:

As the leader in the integrated development of the Yangtze River Delta, how will Shanghai continue to play a pivotal role? What are the plans for integrating resources? Thank you.

Gong Zheng:

Thank you for your question. This question goes to Mr. Gu.

Gu Jun:

Thank you for your question. As we all know, the Yangtze River Delta is one of the most vibrant, open, and innovative regions in China's economic development, with Shanghai acting as the core city within this world-class urban cluster. We are committed to fully implementing the guiding principles outlined in General Secretary Xi Jinping's speech at the symposium on advancing the integrated development of the Yangtze River Delta. Our focus is on both integration and high-quality development, harnessing Shanghai's leadership to strengthen cooperation with the provinces of Jiangsu, Zhejiang, and Anhui. By excelling in resource sharing and playing to our collective strengths, we are moving toward the cohesive development of the Yangtze River Delta. The key is to advance synergies in four areas:

First, sci-tech innovation. We will establish cross-regional bases for national laboratories, improve the planning of the national technology innovation center system, and facilitate joint research within the sci-tech innovation community. There will also be support for the cross-regional transfer and application of sci-tech innovation outcomes.

Second, industrial innovation. We will improve mechanisms for coordinated industrial development, focus on major strategic areas, and facilitate enterprises with trans-regional operations. We will also push forward innovative development among small and large enterprises throughout the upstream, midstream and downstream industrial chains. Our goal is to build world-class, high-end industry clusters in areas like new energy, artificial intelligence, and biomedicine.

Third, opening up. We will actively learn from and align with the best practices of pilot free trade zones, working toward the building of a Belt and Road comprehensive service platform in the Yangtze River Delta. Additionally, we will utilize the leading role of the Hongqiao International Airport as an opening hub, enhance the spillover effects of the China International Import Expo, and promote the Yangtze River Delta's competitive production capacity, quality equipment, applicable technology, and standards to go global.

Fourth, institutional mechanisms. We will formulate and implement a new three-year action plan and advance the formulation of a territorial space plan for the Shanghai metropolitan area. We aim to gradually align public service mechanisms, policies, and standards. Moreover, we will continue to innovate and replicate successful practices in creating the demonstration zone for integrated ecological and green development in the Yangtze River Delta and explore new cooperation models with neighboring regions. Thank you. 

Xinmin Evening News:

Shanghai is home to many tall buildings and, at the same time, harbors old neighborhoods in need of improved living conditions. How does Shanghai improve people's quality of life through urban renewal? Thank you.

Gong Zheng:

Thank you for your question; I will answer it. The CPC Shanghai Municipal Committee and Shanghai municipal government attach great importance to providing livable and secure housing for citizens and continue to carry out urban renewal and the reconstruction of old areas. On July 26, 2022, we marked a significant milestone by completing the renovation of contiguous dilapidated old lane houses below level-two standard in downtown Shanghai, thus concluding an over three-decade-long campaign to improve residents' living conditions. Following the completion of these old neighborhood renovations, we plan to speed up and intensify the renovation of "two old houses and one village," which refers to scattered old houses below the level-two standard, non-standard old housing, and urban villages. We aim to complete the reconstruction project within 10 years, spanning the tenure of two governments. Last year was the first year of the reconstruction project, and we completed the annual target ahead of schedule. We completed the renovation of 123,000 square meters of scattered dilapidated houses below the level-two standard and 296,000 square meters of non-standard old housing. Additionally, we initiated 10 urban village transformation projects. Most importantly, we have removed barriers in carrying out renovation projects. Over the years, we have achieved "two innovations":

One is pattern innovation. For example, we have initiated renewal projects aimed at comprehensive application, such as renovating Fangualong's incomplete staff housing and reconstructing Ruikangli's incomplete alleyways. In the Ruikangli project, we explored four combined resettlement methods: voluntary application for relocation, physical resettlement in another location, repurchase or re-leasing at the original site, enabling residents to choose according to their needs and achieving cost reduction and efficiency improvement for the project.

The other area is policy innovation. We have issued implementation guidelines for urban renewal and a series of supporting policies. For instance, we have explored and established a "three-engineer" responsibility system, involving the collaboration of responsible planners, architects, and assessors. This approach allows professionals to handle their specialized tasks, addressing issues such as insufficient planning and coordination, low design quality, and mismatched standards and specifications in urban renewal.

In the next step, Shanghai will continue to make significant efforts to explore a sustainable path for urban renewal, focusing on the renovation of old areas and housing, as well as urban villages, to improve the living conditions of more citizens. Additionally, we will carry out the renovation and upgrading of old industrial zones, commercial and business districts, and conservation areas, accelerate the renovation of the second facade of the Bund, and implement several renewal projects such as Wusong Innovation City, further enhancing the city's quality and stimulating its vitality. Thank you.

Xinhua News Agency:

We know that Pudong has always been at the forefront of reform and opening-up and has made significant reform efforts in recent years. Could you introduce some of the breakthrough institutional innovations made during the comprehensive pilot reform in Pudong? Thank you.

Gu Jun:

Thank you for your question. Launching the comprehensive pilot reform in Pudong is a significant measure to further promote high-level reform and opening-up, and to accelerate the construction of a leading zone for socialist modernization. It also plays an important role in supporting the accelerated development of "five centers" and enhancing the city's capabilities and core competitiveness. Mayor Gong Zheng earlier introduced the latest progress in Shanghai's development of "five centers." Pudong is the core area for the construction of these "five centers" in Shanghai. Since last year, we have been mobilizing the entire city's efforts to advance the implementation of the Pudong comprehensive pilot reform program, resulting in a continuous emergence of landmark institutional innovation achievements. These innovations mainly manifest in "three batches":

First, a batch of pioneering reforms are being rapidly implemented. China's first-ever Containerized Freight Index Futures was listed for trading, the pilot reform of the architect responsibility system has continued to deepen, and the Pudong New Area has introduced 18 innovative regulations, 23 management measures, and two local regulations with Pudong-specific chapters.

Second, a batch of leading opening-up initiatives is being promoted. China's first marine bonded liquefied natural gas (LNG) bunkering was successfully completed, the Shanghai International Reinsurance Trading Center and the Shanghai Data Exchange International Board were launched, and pilot projects for importing remanufactured products in key industries were initiated.

Third, a batch of groundbreaking innovations is making breakthroughs. We have launched the open competition mechanism for selecting the best public service platforms and accelerated the temporary practice license system for foreign professionals. The number of open innovation centers for large enterprises has reached 90, and the function of sci-tech innovation engines is becoming more prominent.

Next, we will target key areas that have the conditions for making pioneering breakthroughs, strengthen system integration and collaborative efficiency, and strive to make efforts in three areas to better play the role of the national reform and opening-up experimental field.

First, we will promote high-level institutional opening-up. We will formulate and implement special management measures to relax market access in Pudong, orderly promote opening-up in areas such as telecommunications and healthcare, implement pilot reforms like the copyright registration system, and accelerate the construction of a national institutional opening-up demonstration zone.

Second, we will enhance global resource allocation capabilities. We will actively expand the application scenarios of e-CNY, promote the development of offshore economic and trade activities for the convenience of cross-border payments and receipts by multinational enterprises, establish and improve a safe and convenient cross-border data flow mechanism, and continuously enhance the level of factor aggregation and outreach.

Third, we will establish and improve the legal support system. In cooperation with the Shanghai Municipal People's Congress and its Standing Committee, we will formulate six more regulations for Pudong New Area this year, focusing on areas such as free trade accounts, commercial mediation, and enterprise compliance reform. Thank you.

People's Daily:

The development of Shanghai as an international metropolis cannot be separated from international talent. I would like to ask what attracts international talent to Shanghai, and in particular, how does the city attract top international talent? Thank you.

Gong Zheng:

Thank you for your question. I will answer it. Talent is our primary resource. It can be said that a city's competitiveness depends on the caliber of talent it possesses. In the process of accelerating the construction of the "five centers," we have always insisted on gathering the best talents from around the world, continuously enhancing the empowering role of talent. This talent advantage has become a strong pillar supporting Shanghai in enhancing the city and its core competitiveness. In recent years, the total talent pool in Shanghai has continued to grow. For example, last year, we introduced and attracted a total of 172,000 domestic and overseas professionals, a 12% year-on-year increase. Currently, the total talent pool in Shanghai has exceeded 6.75 million. The clustering effect of high-end overseas talent has also continued to increase. Through the implementation of policies such as the "Talent Peak" project and special talent introduction and training projects in key sectors, we have gathered a large number of urgently needed high-end professionals. Shanghai has issued 441,000 work permits to foreigners and over 310,000 returned overseas students have come here to work and start businesses, both figures ranking first nationwide. Shanghai has always been a fertile ground for international talents chasing their dreams.

We also know that without international talent, Shanghai couldn't achieve its vision of developing the international "five centers." Therefore, we must recruit all kinds of top talent from around the world, accelerate the development of comparative advantages in international talent competition, and boost the construction of high-level talent hubs to new heights. We aim to focus our efforts on three areas:

First, we will strive to construct a high-level innovation platform aligned with national strategies. Focused on the significant talent needs during the development of the "five centers," our goal is to establish the four world-class platforms, namely, a basic scientific research platform, an industrial innovation platform, a scientific and technological service platform, and the Shanghai Global Talents Innovation and Entrepreneurship Competition. Our objective is to create a "magnetic field" with a strong attraction to gather talent, providing them with opportunities and spaces for development, as well as enabling them to achieve success in Shanghai.

Second, we will build high-efficiency systems and mechanisms driven by reform and innovation. We will implement a more open, active, and effective talent policy and deepen the comprehensive pilot reform of the system and mechanism for talent development. Our approach includes delegating authority and loosening restrictions in talent discovery, recommendation, evaluation, and other areas, as well as building a rational pyramid-shaped talent structure to fully stimulate their potential for innovation and creativity.

Third, we will concentrate on services and support, aiming to establish a high-quality talent ecosystem. We will accurately meet the needs of talent regarding residency, settlement, inbound and outbound travel, and so on. By leveraging measures such as the premium service plan for outstanding global talent and the one-stop life-cycle reform of talent services, we will further integrate high-quality resources, enhance service quality, and strive to create an excellent ecosystem for the development of top-class professionals in Shanghai. Thank you.

Shou Xiaoli:

The last two questions, please.

Yicai:

We have noticed that Shanghai has recently installed over 30,000 foreign card point-of-sale (POS) terminals and launched a series of policies and measures to improve convenient payments. What other conveniences will Shanghai provide for foreigners working, living, and traveling in China? Thank you.

Hua Yuan:

Thank you for your question. This issue is of great concern to many people from overseas. As we all know, Shanghai is China's largest aviation and shipping hub, as well as a top destination among overseas visitors for business, study, and tourism. We have earnestly implemented the decisions and plans of the CPC Central Committee, and made dedicated efforts to develop a new payment service system with mobile payments as the main component, bank card payments as the focus, and cash payments as the foundation. We will continue to improve this Shanghai solution in convenient payments.

First, we are advancing mobile payments. We have encouraged UnionPay, Alipay, and WeChat Pay to innovate cross-border payment methods, making it easier for users to conduct mobile payments with domestic merchants. Currently, China UnionPay supports payments from more than 180 overseas wallets at UnionPay direct merchants, and Alipay enables e-wallets from 10 countries and regions to make payments in China.

Second, we have improved bank card payments. Last year, we focused on key business districts and areas, activating and installing over 37,000 POS terminals for foreign bank card users. In key sectors such as commerce, tourism, and transportation, we have achieved full POS coverage for major merchants. Currently, Shanghai ranks first nationwide in foreign card POS transaction volumes and per-customer transaction values.

Third, we have improved cash payment systems. Shanghai maintains a comprehensive network for RMB cash withdrawals and exchanges, which includes over 8,000 ATMs, more than 3,500 Chinese-funded bank branches, 13 licensed foreign exchange outlets, and 183 foreign exchange agents, providing foreigners with convenient access to cash.

As Shanghai continues to see increasing inflows of overseas visitors, the city will further remove the barriers for foreigners to work and live in Shanghai. We aim to offer more high-quality, efficient, and convenient services and create a more welcoming environment for them. Specifically, we will align with Shanghai's "five centers" initiative and step up efforts to optimize the following two aspects.

On the one hand, we will continue to optimize the convenience of payment methods. This includes further increasing the availability of POS (Point of Sale) machines for international credit cards, expanding their application scenarios, setting up one-stop service desks at airports and other areas, and promoting citywide accessibility for international credit cards to be able to withdraw yuan from ATMs. We will also accelerate the development of key commercial districts such as Nanjing East Road, Nanjing West Road and Huaihai Middle Road into model districts for departure tax refunds. In the near future, we will introduce specific measures to further enhance the convenience of payments.

On the other hand, we will continue to optimize the content of services related to foreign affairs. At the beginning of this year, the International Services Shanghai online portal was launched. The objective of this website is to welcome and help foreigners, making it easier for those coming to Shanghai to better understand and integrate into the city. We will adhere to a user-oriented approach and empathetic thinking, continuously enhancing the multilingual and scenario-based functions, making it useful and practical for all foreigners in Shanghai, and a service that they will truly love to use. We welcome everyone to explore the online service, use it often and share your valuable feedback and suggestions. Thank you.

Economic Daily:

Last year, the central financial work conference proposed to "boost the competitiveness and influence of Shanghai as an international financial center." Subsequently, Shanghai has also released an implementation plan to build pilot financial reform zones for scientific and technological innovation. May I ask, how will Shanghai promote the coupling of the international financial center and the sci-tech innovation center? Thank you.

Gong Zheng:

Thank you for your question. Let me answer it. The development of five international centers in Shanghai includes the international financial center and the sci-tech innovation center. Therefore, both finance and sci-tech innovation are core functions of Shanghai. It is only by moving forward in a two-way manner that we can best help all parties involved to achieve success. In our work practice, we have also deeply felt that the high-quality development of finance relies heavily on the empowerment of technology. The self-reliance and self-improvement of technology cannot be achieved without the support of a highly compatible financial service system. You could say that there is no finance without technology and no technology without finance.

In recent years, under the guidance of relevant central government departments, Shanghai has vigorously promoted the integration of science and technology within finance, and has gradually established a sci-tech finance system based on sci-tech credit, sci-tech insurance, equity investments and a multi-level capital market. Going forward, we will continue to focus on the entire chain and process of sci-tech innovation, relying on important platforms, such as the sci-tech finance reform pilot zones, to make strides in improving the quality and efficiency of Shanghai's sci-tech financial services. There are a few key measures:

First, we aim to optimize the ecosystem for technology investment, guiding the flow of financial resources to nourish the original innovation of sci-tech companies. Shanghai is a major cluster for equity investment institutions. The city hosts over 1,800 private equity and venture capital managers and manages more than 8,900 funds with a total scale reaching 2.3 trillion yuan — all three metrics ranking among the top in the country. We will further promote the high-quality development of the equity investment sector, guiding social capital to increase support for sci-tech companies that are in the startup phase, because the startup phase involves higher risks and more uncertainties, yet requires financial support. Recently, we have initiated the establishment of the Shanghai Sci-Tech Innovation Financial Research Institute, a social organization dedicated to fostering the development of angel investments, with the goal of strengthening the discovery and investment nurturing of early-stage projects, thereby facilitating effective investment matchmaking for social capital.

Second, we aim to strengthen the multi-level capital market, fully aiding technology enterprises in listing and financing for better development. Since its establishment five years ago, the Science and Technology Innovation Board (STAR Market) has become the preferred listing venue for hard and core technology companies. So far, there have been 570 companies listed, with initial public offering (IPO) funds cumulatively exceeding 900 billion yuan. Among these, 90 listed companies are from Shanghai. Although Shanghai does not have the highest number of listed companies, it ranks first in terms of cumulative IPO funds and market value among companies listed on the STAR Market, with IPO funds reaching 230 billion yuan. We will cooperate with the national regulatory authorities, continue to deepen capital market reforms, enhance the functions of the capital markets, such as the Shanghai Stock Exchange's Main Board and the STAR Market, and strive to make the Shanghai capital market an important, supportive engine for sci-tech innovation and in developing new quality productive forces.

Third, we aim to create sophisticated sci-tech credit and insurance products to better meet the diverse financial needs of sci-tech enterprises. We will guide financial institutions to adapt to the characteristics of new factors, such as technology, data and talent, to recognize the value of intangible assets, and to innovate products and services like credit and insurance, thereby increasing support for sci-tech innovation. For example, we have encouraged some commercial banks to pilot "sci-tech enterprise employee stock ownership plans and equity incentive loans" for technology-based non-listed companies in the Lin-gang Special Area and Zhangjiang Science City. This initiative is very helpful for stabilizing core employees and stimulating innovation vitality. Next, we will also support financial institutions in innovating and launching more specialized financial products that are urgently needed by sci-tech enterprises. Thank you.

Shou Xiaoli: 

Thank you to all the speakers, and thank you to all the journalists for your participation. Today's press conference will now conclude. Goodbye, everyone.

Translated and edited by Zhu Bochen, Wang Qian, Guo Yiming, Liu Sitong, Lin Liyao, Liu Qiang, Zhang Junmian, Cui Can, Huang Shan, Wang Ziteng, Zhang Rui, Yan Bin, Wang Wei, Li Huiru, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

.

Read in Chinese

Speakers:

Mr. Wang Hao, deputy secretary of the Communist Party of China (CPC) Zhejiang Provincial Committee and governor of Zhejiang province

Mr. Xu Wenguang, member of the Standing Committee of the CPC Zhejiang Provincial Committee and executive deputy governor of Zhejiang province

Mr. Lu Shan, vice governor of Zhejiang province

Mr. Du Xuliang, director of the Zhejiang Provincial Development and Reform Commission

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date: 

March 27, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the second press conference in the series themed "Promoting High-Quality Development." We are pleased to have invited Mr. Wang Hao, deputy secretary of the Communist Party of China (CPC) Zhejiang Provincial Committee and governor of Zhejiang province, to brief you on "seeking solid progress in implementing the 'Double-Eight Strategy' and striving to pioneer a new chapter in Chinese modernization," and to answer your questions. Also present at today's press conference are Mr. Xu Wenguang, member of the Standing Committee of the CPC Zhejiang Provincial Committee and executive deputy governor of Zhejiang province; Mr. Lu Shan, vice governor of Zhejiang province; and Mr. Du Xuliang, director of the Zhejiang Provincial Development and Reform Commission.

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

Wang Hao:

Ladies and gentlemen, good morning. I am very pleased to meet you all today. First of all, on behalf of the CPC Zhejiang Provincial Committee, the Zhejiang Provincial People's Government and the 66.27 million people of Zhejiang province, I would like to express our heartfelt thanks for your long-term interest in and support for Zhejiang. Next, I will briefly introduce the situation regarding Zhejiang's advancement of high-quality development.

Zhejiang is the place from which the red boat of the Chinese revolution set sail. General Secretary Xi Jinping, who worked in Zhejiang for six years, personally crafted the "Double-Eight Strategy" (which identifies eight strengths Zhejiang possesses in economic structure, geological location, industries, coordinated urban-rural development, ecology, mountain and ocean resources, environment and culture, as well as eight measures the province is taking to exploit these strengths) as the overarching program and strategy for the province's development. Since the 18th CPC National Congress, the general secretary has visited Zhejiang six times to inspect and guide its development. He encouraged Zhejiang to "continuously strive for practical efforts, seek new development at the forefront, and demonstrate responsibility by leading the charge." He has called on Zhejiang to become a vital window showcasing the advantage of the socialist system with Chinese characteristics for the new era, entrusting it with the significant mission of building a demonstration zone for high-quality development and common prosperity. Especially in September last year, he granted Zhejiang the new role of pioneer of Chinese modernization and the new mission of vigorously writing a new chapter of Chinese modernization in Zhejiang, elevating the province's development to an unprecedented level. We have remembered the general secretary's entrustment, gratefully advanced under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely carried out the in-depth implementation of the "Double-Eight Strategy," and strived to be pioneers on the new journey, writing a new chapter. Zhejiang has greater comprehensive strength, more robust vitality, more harmonious urban and rural regions, and its people's lives are richer. The path of high-quality development is becoming broader and creating greater confidence.

We have continued to adhere to high-quality development as our top priority, resolutely embracing our role as a leading economic province. We implemented the "No. 1 Development Project" for digital economy innovation and quality enhancement, the "No. 1 Reform Project" to optimize and improve the business environment, and the "No. 1 Opening-up Project" to empower and elevate the "sweet potato economy" (symbolizing Zhejiang's growth strategy, with local investments spreading globally like sweet potato vines, enhancing international engagement and strengthening the local economy). With these three "No. 1" projects as the overall driving force, we initiated and implemented the "Ten Major Projects," including the "Thousand Major Projects, Trillion Yuan Investment" initiative, as specific action points and entryways to accelerate the creation of a modern industrial system with Zhejiang characteristics, and to promote effective qualitative improvements and reasonable quantitative growth of the economy. In 2023, the province's GDP reached 8.2553 trillion yuan, growing by 6%, and creating 6.5% of the national GDP with only 1.1% of the country's land and 4.7% of its population. The general public budget revenue was 860 billion yuan, an increase of 7%, ranking third nationwide in total volume.

We vigorously promoted further innovation, deepened reforms, overcame challenges, and enhanced opening-up to further cultivate and solidify our lead in future development. We focused on leveraging scientific and technological innovations to create new development advantages, accelerating the growth of new quality productive forces, with the R&D intensity of the whole society reaching 3.15%, and our regional innovation capability ranking fourth nationwide. We strived to build a market-oriented, law-based and internationally first-class business environment, implementing 32 policy measures to promote the high-quality development of the private economy, boosting market expectations and corporate confidence. The number of market entities in the province has reached 10.4 million, meaning there is one entrepreneur for every 6.5 people in Zhejiang. We focused on amplifying the advantages of an open economy: In 2023, the total import and export volume of the province reached 4.9 trillion yuan, of which 3.57 trillion yuan were exports, accounting for as much as 15% of the national total.

We remained focused on narrowing the "three major gaps" (the urban-rural income gap, the per capita GDP gap between eastern and western regions, and the wealth gap between the urban rich and poor) as our principal direction, making concrete progress in the construction of a demonstration zone for common prosperity. We consistently deepened the "Thousand Villages Demonstration and Ten Thousand Villages Renovation" project, supported the high-quality development of mountainous and island counties with a "one county, one policy" strategy, and leveraged the integration of basic public services as a breakthrough point to further reduce disparities between regions, urban and rural areas, and incomes. This fostered the integrated development of urban and rural areas, and accelerated the drawing of a new picture of "thousands of villages playing leading roles, tens of thousands of villages being revitalized, common prosperity across the province, and harmonious and beautiful urban and rural areas." In 2023, the per capita disposable income of urban and rural residents reached 74,997 yuan and 40,311 yuan, respectively, maintaining first place among all provinces and regions for 23 and 39 consecutive years, respectively. The urban-rural income gap ratio has narrowed to 1.86; the disparity between different regions continues to diminish; and the per capita disposable income gap ratio between the highest and lowest earners in cities with subordinate districts reduced to 1.56.

We put into practice the idea that "lucid waters and lush mountains are invaluable assets," and continuously make the effort to highlight the uniqueness of the "picturesque and dynamic Zhejiang." We are committed to building the province into a "big garden." In 2019, Zhejiang was recognized as the first ecological province in China. In 2023, the first National Ecology Day events were held in Zhejiang. The Green Rural Revival Program and the Blue Circle program that focuses on marine plastic waste treatment won the United Nation's Champions of the Earth award, successively. The province's forest coverage rate stands at 61.3%, ranking the third in the country.

Zhejiang is committed to implementing a "streamlined, safe and splendid" competition planning protocol for sporting events, ensuring that both the Hangzhou Asian Games and Asian Para Games are successful. Additionally, such efforts also serve as a window to showcase Chinese modernization. The Hangzhou Asian Games and Asian Para Games deliver to the world a great event that is distinctly Chinese, uniquely Asian and spectacular, allowing the world, therefore, to experience the dramatic changes in Zhejiang under the guidance of the "Double-Eight Strategy," as well as the outcomes of China's high-quality development and the vitality of modernization. It also gives a strong impetus for us to keep going on the new journey and make achievements in the new era.

We will thoroughly study and implement the spirit of important speeches and instructions made by General Secretary Xi Jinping, and take high-quality development as an obligatory task, striving to reach the goal of meeting people's expectations for a better life. We will implement the "Double-Eight Strategy" in a pragmatic manner and aim toward writing a new chapter in advancing Chinese modernization in Zhejiang, so as to contribute more to the building of a strong country and rejuvenation of our nation.

That's all for my brief introduction. Thank you.

Chen Wenjun:

Thank you, Mr. Wang. Now the floor is open for questions. Please identify your media outlet before raising questions.

CMG:

It has been more than 20 years since Zhejiang adopted the "Double-Eight Strategy." What efforts, centering on the high-quality development, will be made to further advance the "Double-Eight Strategy?" Thank you. 

Wang Hao:

Thank you for your question, and I'll answer it. General Secretary Xi Jinping personally proposed the "Double-Eight Strategy" for the development of Zhejiang when he worked in the province, and made a series of key and foresighted decisions and arrangements. Last year marked the 20th anniversary of the implementation of the "Double-Eight Strategy." Guided by the "Double-Eight Strategy," Zhejiang in the past 20 years has witnessed remarkable changes in a widespread, systemic and profound manner. Under the guidance of the "Double-Eight Strategy," historic achievements have been made in high-quality development and modernization. Looking forward, Zhejiang will continue to unswervingly and fully implement the "Double-Eight Strategy" so as to "serve as a pioneer, and write a new chapter."

Currently, Zhejiang has continued putting into practice the "Double-Eight Strategy," which aims to achieve the goal of becoming "a pioneer in Chinese modernization," as well as the mission of "writing a new chapter of Zhejiang in advancing Chinese modernization." Year in and year out, we will stay focused on our goal and work hard toward it, ensuring our efforts are always results-oriented, pioneering and responsive to the trends of the time. We will step up endeavors in the following four aspects:

First, we will make greater efforts to address the "growing pains" that emerge when pursuing high-quality development, and take the lead in building new strengths for development through sci-tech innovation. We will stay committed to the path of new industrialization, and ramp up efforts to develop new quality productive forces according to local conditions. We will promote the building of a sci-tech innovation system and foster advanced manufacturing clusters, and pursue progress in making Zhejiang a strong province in education, science and technology and human resources. We will boost efforts to address problems that hinder high-quality development, such as the lack of resource factors, weakened momentum, constrained development spaces and imbalances and inadequacies, so as to build the province into a place with high-level capabilities for innovation and an advanced manufacturing base in the world.

Second, we will step up efforts to make landmark achievements in building a demonstration zone for common prosperity, and establish the province into a key example in promoting common prosperity. We will explore and establish fundamental systems and mechanisms that are conducive to promoting common prosperity. Greater efforts will be made to advance the Green Rural Revival Program in the new era and promote high-quality development in counties located in both mountainous regions and island areas. We will strive for high-quality shared public services so as to guarantee that more tangible benefits can be delivered to the people. Meanwhile, we will try our best to create more experiential practices that can be repeated and promoted.

Third, we will make greater efforts to explore new ways in deepening institutional innovation, and write a new chapter in deepening reform and opening up. We will promote the reform of public services in a bid to lower enterprise costs and increase their profits, continuing to improve the business environment so as to promote high-quality development of the private economy and to build the province into a pilot for high-quality and efficient reform. We will promote high-level opening up and encourage enterprises to "go global" and "bring in foreign investments." Intensified efforts will be made to build world-class ports and to steadily expand institutional opening up with the aim of making the province outstanding for higher-level opening up.

Fourth, we will focus on enhancing the potential of Zhejiang's culture to actively explore our path toward modern Chinese civilization. We will champion the Red Boat Spirit of the Chinese Communists and the Zhejiang Spirit that keeps pace with the times. Cultural heritage sites, including the Liangzhu Ruins, the West Lake, and the Grand Canal, will be better preserved and passed on. We will also advocate for the deep integration of culture and tourism and develop cultural programs and the cultural industry, aiming to make Zhejiang a renowned and favored destination , known for its picturesque landscapes, traditional Chinese culture, and dynamic development.

Seeking solid progress in implementing the "Double-Eight Strategy" is both a demanding and important task. We will see that officials correctly understand what it means to perform well and integrate this understanding into their actions. Every task should be implemented and deliver tangible results. By doing so, Zhejiang will take decisive, rapid, and effective steps to fully implement the requirements of General Secretary Xi Jinping and the decisions and plans of the CPC Central Committee. 

That's all from me. Thank you.

21st Century Business Herald:

This year's No. 1 central document mandates that all localities draw on and apply the experience from the Green Rural Revival Program in Zhejiang province to advance rural revitalization. Could you please introduce the changes the program has brought to Zhejiang? Thank you.

Xu Wenguang:

Okay, I'll take this question. Over the past two decades, the Green Rural Revival Program has made thousands of villages beautiful and improved the well-being of thousands of people in Zhejiang. The program won the UN Champions of the Earth award and has been praised by Zhejiang farmers as the most welcomed and most beneficial practice to farmers adopted by the Party and the government since implementing the household contract responsibility system. My introduction will focus on three aspects:

First, the Green Rural Revival Program has brought tremendous changes to rural areas. Many people say that the villages in Zhejiang are the most impressive, with beautiful landscapes everywhere they go. Through the full implementation of the Green Rural Revival Program, we have achieved public transportation coverage and broadband connection in all villages. Public service centers have been built in every village. The centralized treatment of sewage and refuse has resulted in cleaner courtyards and a more beautiful rural environment. Meanwhile, we have adopted a category-based, region-specific approach to focus on specialty products and the diverse beauty of individual villages. Urban residents visit the beautiful countryside to experience a poetic life far from the hustle and bustle of the city. Their consumption during countryside trips attracts more young people to return to their hometowns to start businesses, creating a positive cycle.

Second, the Green Rural Revival Program has developed a model of integrated urban-rural development. From the start, it was not merely about improving the rural living environment. It was not a simple task of painting walls or decorating villages, but a new approach to treating cities and the countryside as indivisible, systematically encouraging interaction between the two to accomplish integrated development. During the sewage revolution, garbage revolution, toilet revolution, and the construction of a beautiful and harmonious countryside, we have consistently emphasized the leading role of cities and the supporting role of the countryside in each other's development. By doing so, we have created a favorable environment for integrated urban-rural development in Zhejiang.

Third, the Green Rural Revival Program has advanced rural governance based on collaboration, participation, and shared benefits. We have taken into full account the government's capabilities and the people's desires. The government should proactively, earnestly, and with concrete steps perform its duties where necessary while avoiding overreach that would dominate or interfere in matters where the people should have greater say. By doing so, we have established an effective rural governance model, ensuring that the people are at the heart of rural revitalization and benefit directly from it. In recent years, eco-agriculture, rural e-commerce, rural tourism, and other new forms of business have thrived in Zhejiang. The province has nurtured "new farmers" for modern agriculture and built "common prosperity workshops" to ensure that all rural residents have jobs and income. As a result, the per capita disposable income of rural residents has exceeded 40,000 yuan. All these efforts facilitate our goals of building a beautiful countryside, creating a beautiful economy, and pursuing a be

tter life.

Next, we will continue to deepen the Green Rural Revival Program in the new era. By coordinating efforts to strengthen , rural and urban prosperity, and integrated development, Zhejiang will contribute more to advancing rural revitalization across the board.

That's all from me. Thank you.

Hong Kong Bauhinia Magazine:

The CPC Central Committee has entrusted Zhejiang with an important mission to build a demonstration zone for common prosperity through high-quality development. What measures has the province taken in recent years to advance common prosperity and promote coordinated urban-rural and regional development? Thank you.

Du Xuliang:

Thank you for your question. In recent years, we have made high-quality development our main task, focused on narrowing the "three major gaps," taken reform and innovation as our fundamental driving force, and aimed to satisfy the people's demand for a better life. We have taken down-to-earth and well-targeted steps and yielded solid results in the building of a demonstration zone. I think this work can be summarized in three sentences:

The first sentence is about narrowing the regional gap and putting mountain and sea areas on a journey toward common prosperity. For Zhejiang, the key and the challenge in achieving common prosperity lie in the counties located in mountainous areas and islands. We have formulated a "one county, one policy" approach to promote a path of shared prosperity with distinctive characteristics for mountainous and island counties. For example, Jingning county in the city of Lishui, Zhejiang province, is the only She autonomous county in the country. We have supported local governments in developing specialty brands such as tea leaves and green agricultural products, to create a model of high-quality public services in mountainous counties, helping the local people share in the prosperity. Similarly, Shengsi county, the island county in Zhejiang furthest from the mainland, has focused on resources such as fishing, ports and tourism, creating a model for the development of island counties. In the past two years, the major economic indicators and the income growth rate of residents in Zhejiang's mountainous and island counties have both been higher than the provincial average.

The second sentence is about narrowing the urban-rural gap and helping cities and villages thrive on their own conditions. We have promoted the integrated development of urban and rural areas, and tried to ensure all residents enjoy a happy life. In Zhejiang, with village and residential committees as the core, people can access public services such as medical care, elderly care, and education within a 15-minute walk in cities or a 15-minute ride in the countryside. More than 90% of villages in the province have completed the "Beautiful Village in the New Era" program. The goal of developing the economy while preserving the rural environment is gradually becoming a reality.

The third sentence is about narrowing the income gap and striving to expand employment. We have ramped up efforts to expand the middle-income group and raise the income of the low-income group. We also launched the "Employment and Entrepreneurship in Zhejiang" program, and made more efforts to increase the incomes of people on low incomes. For instance, we have actively promoted the "shared prosperity workshops" and guided eligible enterprises to establish production and processing lines in rural areas, making it convenient for more people, and especially the low-income group, to find jobs locally. At present, the province has built over 10,000 "shared prosperity workshops," creating nearly 500,000 jobs, with average monthly incomes rising by around 2,600 yuan per person.

Promoting common prosperity is a long-term task. We will continue to step up our efforts to make the economic pie bigger and divide it well, and also make sure that more successful practices can be replicated in other parts of China.

That is all from me. Thank you.

Phoenix TV:

We know that Zhejiang's private economy is very active, with a large number of business entities. Going forward, what measures will the province take to promote its private economy? Thank you.

Du Xuliang:

Thank you for your question. Zhejiang merchants are a precious resource and wealth for Zhejiang. They are hardworking, enterprising, resourceful, and resilient. They have made outstanding contributions to the high-quality development of Zhejiang. This can be illustrated with a set of figures: By the end of 2023, the private economy had contributed 67.2% of Zhejiang's GDP, 71.7% of its tax revenue, 80.2% of its imports and exports, 87.5% of its employment, and 96.9% of its market entities. The province has ranked first in the country for 25 consecutive years for the number of top-500 private enterprises. We often say that we should not only care about what achievements these private enterprises have made, but also what challenges and difficulties they have faced. Therefore, we fully support the development of the private economy, strive to reduce pressure on the environment, provide timely assistance, and address concerns about development. By doing so, we hope to boost internal drive for development and stimulate greater vitality for innovation, creating new advantages for the development of the private economy. The main measures are as follows: 

First, we will safeguard the development of private enterprises based on the rule of law, and ensure they are confident in their investment. Zhejiang province has introduced regulations on fostering the growth of its micro, small and medium-sized enterprises and on optimizing its business environment. We have strengthened work regarding the enactment, revision, abolition and interpretation of laws and regulations related to the business environment. We have abolished and revised 20 regulations, and overhauled and standardized 2,379 normative documents, striving to create a stable, fair, transparent, and predictable environment for the development of private enterprises.

Second, we will introduce more pro-business policies for private enterprises. Among the 32 policies introduced to promote the high-quality development of Zhejiang's private economy, there are many substantial and new measures. For example, to further break the "glass doors," "invisible doors," and "swing doors" that hinder business, we proposed the "Seven Prohibitions," such as lifting restrictions on ownership forms, organizational forms, or equity structures. They are aimed to remove barriers that prevent private enterprises from participating fairly in bidding. Furthermore, to fully meet the urgent needs of private enterprises for resource elements, we have proposed a new mechanism, whereby the proportions of industrial funds, newly added land, and new energy consumption in private investment projects should all exceed 70%.

Third, we will provide continuous support for the development environment and ensure private enterprises to grow confidently. We have outlined and proposed "three lists of projects" recommended to private capital, namely, a list of major projects and those addressing weaknesses, a list of key projects on industrial and supply chains, and a list of user-pay franchise projects. Additionally, we actively support private capital's entry into traditional monopolistic fields such as railways, oil and gas. Private investment has participated in the construction of landmark projects like the Hangzhou-Shaoxing-Taizhou Railway, the Hangzhou-Wenzhou Railway, the Zhoushan green petrochemical base, and the San'ao nuclear power plant.

In summary, we will steadfastly work to consolidate and develop the public sector while encouraging, supporting, and guiding the development of the private sector. We will make greater efforts to help private enterprises solve their problems, enable private investment to enter and thrive in more areas, encourage private enterprises to expand into more markets and grow stronger, and continuously enhance Zhejiang's private economy as the "golden business card" of the province. Thank you!

zhonghongwang.com:

We observed that this year, Zhejiang's "first meeting of the Lunar New Year" made comprehensive arrangements for building a skilled workforce. Could you please tell us what measures Zhejiang will take to attract high-caliber talent and stimulate innovation vitality? Thank you.

Lu Shan:

Thank you for your question. This year, our "first meeting of the Lunar New Year" was themed around seeking solid progress in implementing the "Double-Eight Strategy." We are focused on comprehensively strengthening the development of three key teams: high-caliber officials, high-level innovative talents and entrepreneurs, and highly skilled workers. These efforts provide solid support for pioneers and breakthroughs.

Here, I will focus on the development of high-level innovative talents and elaborate on our measures in three areas:

First, we will attach equal emphasis to attracting and nurturing talent to gather a greater pool of talent. With eagerness and sincerity, Zhejiang consistently seeks talent from home and abroad to come and develop in the province. In 2023, the province attracted 1.25 million university graduates, brought in and fostered 535 state-level leading talents and 523 young talents. At the same time, we emphasize the cultivation of innovative spirits and capabilities, with particular attention given to nurturing outstanding innovative talents and improving the quality of independent talent cultivation. In particular, we actively develop higher education to its full potential and enhance its overall level, advancing the integration of science with education, industry with education, as well as vocational and general education. We aim to cultivate more young talents capable of adapting to the demands of new quality productive forces.

Second, we will establish a good platform to enable talents to achieve greatness. We will accelerate the construction of scientific and technological innovation platforms such as national laboratories, the top 10 provincial laboratories, the top 10 provincial technology innovation centers, 21 national key laboratories, and 119 provincial-level new R&D institutions. We will also support enterprises in establishing technology centers and R&D centers and encourage leading enterprises to lead the establishment of innovation consortia. We will provide a broad stage for talents to display their capabilities and achieve their aspirations, making Zhejiang a place where various talents can realize their value. For example, the Liangzhu Laboratory emphasizes enabling young talents to shoulder major responsibilities and play leading roles, cultivating a group of entrepreneurial and innovative talents with both the spirits of scientists and the qualities of businesspeople.

Third, we will optimize services to retain talent. We will focus on addressing the key concerns of professionals in five aspects: housing, transportation, childcare, registered residency, and income. We will continuously upgrade and improve the four major systems: the financial support system for talent development, the housing guarantee system for talents, the education service system ensuring quality education, and the comprehensive healthcare service system covering people's entire lifespans. This is aimed at alleviating the worries of talents and transforming Zhejiang into a haven where all types of talents can thrive and settle. We will promote the value-added reform of talent services, delegate power to employers, and ease restrictions on talent, ensuring that we refrain from unnecessary interference and remain responsive to their needs. We will establish an efficient system for the transformation and application of scientific and technological achievements, enhance the system for intellectual property protection, adopt a tolerant and prudent approach to supervising innovation and entrepreneurship activities, and support the development of new industries, formats, and models. This fosters a virtuous cycle where Zhejiang nurtures talents and talents contribute to the prosperity of Zhejiang.

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

Tide News under Zhejiang Daily Press Group:

At the end of every year, people in Zhejiang receive an open letter from the provincial governor, soliciting practical project proposals that the provincial government will undertake in the following year. Could you please inform us how Zhejiang province handles this matter and what the results are? Thank you.

Wang Hao: 

Thank you for your question. I'll answer it. Our goal is to fulfill the people's expectations for better lives. Practical work concerning people's livelihoods is not only a major project for improving livelihoods and development but also a major project for winning people's hearts. Back in 2004 when General Secretary Xi Jinping worked in Zhejiang, he personally advanced the efforts of the CPC Zhejiang Provincial Committee and the Zhejiang provincial government to take the lead in issuing the "Opinions on Establishing and Improving a Long-term Mechanism for Delivering Services to the People." For the first time, "focusing on 10 aspects of practical matters concerning livelihoods" was included in the provincial government work report. For the past 20 years, we have been dedicated to addressing the most pressing, direct, and practical issues of the people. With the collaboration of provincial, city, and county-level governments, we dedicate ourselves to practical matters for the people each year, creating a "golden business card" for Zhejiang.

In 2023, we focused on practical matters to improve people's livelihoods and launched the "Seven Benefits" public service project. This initiative was designed to ensure people's access to quality childcare, education, employment, medical services, elderly care, housing, and social assistance.. These are the specific contents of the "Seven Benefits." Based on this project, the provincial government identified 10 key aspects for improving people's livelihoods in 2023 and detailed them into 56 major items and 31,569 specific matters and tasks. Through our efforts over the past year, we have fully achieved the anticipated target, with a satisfaction rate of 99.5% among the public. In 2024, the provincial government will continue to plan and implement 32 projects in 10 key aspects. Our main approach in specific work is as follows:

In the solicitation phase, we collect suggestions for livelihood projects through the governor's open letter, ensuring people's voices are heard and responded to. Every October, the provincial government issues an open letter in the name of the governor to the entire province, seeking opinions and suggestions from the public on the practical matters concerning the coming year's livelihood projects. The response has always been enthusiastic, with high public participation. The open letter for soliciting livelihood projects in 2024 received 29.33 million views and over 40,000 suggestions.

When planning livelihood projects, we adhere to the principle of doing our best within our capabilities, focusing on addressing the most urgent and pressing issues of public concern. We prioritize basic, inclusive, and essential livelihood security, targeting major issues that people are deeply concerned, and those minor yet significant matters affecting people's daily lives. We strive to implement livelihood projects that truly resonate with the people. At the same time, we promote inclusive and accessible basic public services through these projects without being overambitious or inflating expectations. Moreover, we ensure that improving people's livelihoods is based on sustainable economic development and fiscal capacity at all levels.

In the decision-making process for public livelihood projects, we invite deputies to the People's Congress and members of the Political Consultative Committee to thoroughly review and discuss the projects, with the government strictly implementing and ensuring proper execution. We consider the 10 aspects of the provincial government's livelihood projects as a key part of the annual government work report and submit them to the provincial "two sessions" for review and discussion. Additionally, at the municipal, county and township levels, we have implemented a voting system by deputies to the People's Congress to decide on livelihood projects. This means that the projects are submitted to the People's Congress, and the specific projects to be implemented are determined through a differential voting process by the deputies. Based on the voting results of deputies at all levels, we identify the specific implementation items each year, promoting a more democratic, standardized, and rule-based mechanism for addressing public welfare matters.

In the implementation phase, we adhere to quantification, digitization, and closed-loop management to ensure that our promises are kept and that our actions lead to results. Every year, the provincial government's 10 aspects of livelihood projects are divided into a system of "two lists": a project list and a construction standard list. We clearly define the specific locations, construction standards, completion timelines, and responsible entities for each project. All projects are included in the government's digital platform for supervision. At the year's end, we publicly announce the progress of each project and location and present a report to the deputies and members of the provincial "two sessions." Simultaneously, we conduct evaluations on the public's satisfaction with the implementation of these projects, ensuring results and the fulfillment of our promises.

That's all for my answer. Thank you!

China Daily:

Recently, Zhejiang province's "one-stop service window for unresolved issues" has attracted attention online and in the media, even trending on social media. Could you please share with us any future innovations and explorations the province plans to undertake to improve the business environment and provide convenience to enterprises? Thank you.

Xu Wenguang:

Thank you for your question. I appreciate everyone's concern for Zhejiang province's business environment. The business environment is a concentrated reflection of comprehensive competitiveness, closely related to Mr. Du Xuliang's previous answer regarding the private economy. Zhejiang province has never stopped its steps to optimize business environment, including  improvement of work efficiency, "four lists and one network" reform, "one-stop service " project and the digital transition. Since 2023, the province has vigorously implemented the "No.1 Reform Project" to optimize and upgrade the business environment, led by the reform of value-added government services, continuously promoting the business environment to the forefront of the country. Zhejiang has been rated as the province with the best reputation for the business environment by the All-China Federation of Industry and Commerce for four consecutive years. By the way, I am the team leader of this project. 

The value-added reform of government services we are promoting can be summarized into four new methods:

First, we have created a new platform where all kinds of matters can be handled in one location. By leveraging existing local government service centers, we have established comprehensive enterprise service centers. Here, businesses can access not only basic government services, such as convenient approvals, but also enjoy customized, advanced services according to their needs. For example, when opening a restaurant, not only can basic government services such as registration and seal engraving be handled at one time, but more than 10 value-added services, such as catering site surveys and fire safety guidance, can also be provided at the same time. The one-stop service window you just mentioned is set up in the comprehensive enterprise service center, ensuring that all kinds of matters and complicated issues that are difficult to handle through conventional "technical judgment" but should be managed based on "value judgment" can all be resolved here.

Second, we have provided directly accessible new experiences that strengthen digital intelligence empowerment policies. Leveraging the achievements of digital reform, we created an online "policy calculator" to accurately deliver the 32 policies for high-quality development of the private sector and other enterprise-friendly policies issued by our province directly to enterprises, allowing them to access and benefit from the policies without needing to apply. We transformed the business environment from "enterprises searching for policies" to "policies finding enterprises." In 2023, Zhejiang distributed 71.2 billion yuan in rewards and subsidies, reducing the financial burden on market entities by more than 330 billion yuan.

Third, we have built a new mechanism for the efficient, closed-loop resolution of enterprise-related issues. The most effective approach involves proactively addressing the demands of enterprises and solving their various challenges. We have established an efficient closed-loop resolution mechanism for enterprise-related issues, striving to collect and efficiently resolve enterprise-related issues on a multi-tiered, multi-level and categorized basis. We call it the "three-classification mechanism." This mechanism shifts away from the traditional reliance on personal acquaintances and interpersonal relationships when enterprises encounter problems. Instead, it provides institutional arrangements between the government and businesses, as well as business environment evaluation.

Fourth, we have made new breakthroughs in addressing challenging issues. We concentrate on areas such as bidding, intermediary services, intellectual property protection, and the relationship between government and business. We have planned and implemented special initiatives to remove various institutional barriers to enhance the sense of gain and degree of satisfaction among enterprises and the public. For example, to cultivate a cordial and clean relationship between government and business, we issued behavioral guidelines and formulated three lists to categorize positive, negative, and recommended interactions between government and business.

There is no best business environment, only a better one. Zhejiang will further advance the "No. 1 Reform Project" to improve the business environment, providing a strong impetus for developing new quality productive forces and promoting high-quality development.

That's all from me for this question. Thank you.

China Arab TV:

Facing a complex and fast-changing international environment, how will Zhejiang, as an export-oriented province, respond to challenges and promote openness? Thank you.

Lu Shan:

Thank you for your question. Mr. Wang Hao just mentioned that Zhejiang's total import and export volume last year reached 4.9 trillion yuan, ranking at the forefront among provinces, autonomous regions, and municipalities in terms of contribution to national import and export growth. As you said, with Zhejiang's foreign trade dependence ratio surpassing 60%, the development of an open economy is of great significance to us. Moving forward, we will focus on promoting the "three further improvements," including improving our open economy, becoming a dual circulation strategic hub, and expanding our institutional opening-up system. We will actively participate in the Belt and Road Initiative, deeply implement the "No. 1 Opening-up Project," and accelerate Zhejiang's transition into a province with higher-level opening-up. I will report on three specific aspects:

First, we will promote institutional opening-up and improve the level of openness. We will support open platforms, such as the Zhejiang Pilot Free Trade Zone, to align with international high-standard economic and trade rules, steadily promote the institutional opening-up of rules, regulations, management, and standards, accelerate the formation of new mechanisms for trade and investment cooperation, and fully promote the construction of Ningbo Zhoushan Port into a world-class port to enhance its capacity for commodity resource allocation. We will support Yiwu city in deepening the comprehensive reform of international trade, making it easier for global buyers to purchase and sell products worldwide. It is necessary to innovate and develop digital trade and optimize the "cross-border e-commerce + industrial belt" and "overseas warehouse + front warehouse + independent station" models to help more micro-, small- and medium-sized enterprises open stores and sell goods globally.

In September this year, the third Global Digital Trade Expo will be held in Hangzhou. This expo was elevated to a national first-class exhibition last year and was also included in this year's government work report. We will further promote the expo as a national-level international professional exhibition under the theme of digital trade and go all out to host this grand event. Here, we sincerely invite businesspeople worldwide to attend the exhibition, discuss cooperation, promote common development, and share benefits.

Second, we will continue "bringing in" high-quality enterprises from around the world so they can share high-quality development opportunities in Zhejiang. We are committed to fostering a first-class business environment that is market-oriented, internationalized, and law-based. We implement a management system that combines pre-entry national treatment with the negative list, and by regularly hosting roundtable meetings for foreign-funded enterprises, we strive to help address production and operation difficulties, ensuring these companies have more confidence in their investments and development in China. We will advance the global investment promotion campaign of "invest in Zhejiang" and try our best to attract a number of large, high-quality and high-tech projects as well as foreign-funded enterprises that use unique and sophisticated technologies to produce novel and unique products. Last year, Saudi Aramco and Rongsheng Petrochemical Co. Ltd. in Zhejiang province achieved strategic cooperation. We sincerely hope more enterprises will choose Zhejiang as an important investment destination and take the "express train" of Zhejiang's high-quality development.

Third, we will continue "going global" to develop and expand the businesses of overseas Zhejiang residents. Zhejiang people have always been courageous pioneers, and currently, more than 2 million Zhejiang merchants are doing business worldwide. We will further steady progress and improve the quality of foreign trade by advancing the campaign of "tens of thousands of enterprises expanding the market to increase orders." We will motivate private enterprises to implement "pioneering actions," encourage them to make global plans, construct a number of overseas industrial parks with Zhejiang businesspeople as the main contributors, launch a series of "small but beautiful" projects such as Silk Road e-commerce, and build a number of multinational corporations deeply engaged in the international market. At the same time, we will deepen exchanges and cooperation with friendly provinces, states, and sister cities and enhance economic and trade exchanges, cultural communication, and mutual learning among civilizations on a wider scale.

That's all from me, thank you.

Chen Wenjun:

Due to time constraints, we'll take the last two questions.

CNR:

We have noticed that last year's inaugural National Ecology Day event was held in Huzhou. As the birthplace of the concept that "lucid waters and lush mountains are invaluable assets," how does Zhejiang give full play to its ecological value and turn "green" into "gold?" Thank you.

Xu Wenguang:

Thank you for your question. As Mr. Wang mentioned earlier, Zhejiang holds the distinction of being China's first ecological province. On Aug. 15, 2023, the first National Ecology Day event was held in Huzhou, Zhejiang province. Over the years, under the guidance of the concept that "lucid waters and lush mountains are invaluable assets," Zhejiang has continuously pursued development paths focused on economic transformation and upgrading, efficient resource use, continuous environmental improvement, and balanced and harmonious development between urban and rural areas. This approach is mainly reflected in the following four aspects:

First, we have pursued high value-added economic growth. We have continued to restructure and upgrade industries with persistence by constantly phasing out small, poorly managed, and heavily polluting enterprises and cultivating high-tech, high-precision and advanced industries. This allows for the development of eco-friendly industries and the industrialization of environmental protection, improving the quality of growth through the replacement of old growth drivers with new ones. We took the lead in the construction of collaborative innovation zones to reduce pollution and carbon emissions. Starting with cities, parks, enterprises, and other areas, we have promoted the integrated planning, deployment, promotion, and assessment of carbon emission and pollution reduction efforts to accelerate the realization of win-win environmental, climate, and economic benefits.

Second, we have focused on ecological conservation to improve the environment. We strengthened the synergistic effect of pollution and carbon reduction, rolled out a series of combined measures to advance water management, improve soil conservation, and reduce gas, waste and plastic pollution. In 2023, the proportion of excellent and good quality surface water controlled at the national level reached 97.5%, and air quality was good or excellent on 91.6% of the days over the past year. Over the past two years, we have made great efforts to address environmental problems that concern the public, including noise, odor, and black and malodorous water bodies. As a result, the public satisfaction rate for environmental protection has continued to improve for 12 consecutive years.

Third, we cultivated "new strengths" in governance. As the nation's first province to pilot the digital transformation of the ecological environment, we have established an integrated decision-making command platform covering the whole processes. We strived to achieve precise control to guarantee environmental quality, pinpointing and accurately managing issues. Notably, with the launch of the digital system for environmental impact assessment (EIA) in Zhejiang, we strived to use the least costs and time to ensure effective oversight while streamlining regulation, so as to facilitate enterprises to accelerate project construction. Presently, the EIA system has been accessed and used by enterprises for 270,000 times.

Fourth, we nurtured green "growth points." We prioritized leveraging social capital, market-oriented approaches, and third-party collaboration to catalyze the transformation of ecological value. This involved promoting ecological products' diversified development, multi-tiered utilization, and value increment at various links. For example, the Blue Circle environmental initiative was recognized with the United Nations Champions of the Earth Award for addressing marine plastic pollution. It engages fishermen, shipowners, and enterprises and mobilizes coastal communities to collect marine plastic waste. By establishing funds for secondary value distribution, this model not only offers a Chinese solution to the global challenge of marine plastic pollution but also boosts income for local fishermen. We firmly believe that through technological, model, and institutional innovations, we can undoubtedly transform more "lucid waters and green mountains" into even more valuable assets in the future.

That's all from me. Thank you.

Science and Technology Daily:

As a major economic province, what measures does Zhejiang plan to take next in building a modern industrial system and developing new quality productive forces? Thank you.

Du Xuliang:

Thank you for your question. We are actively implementing the arrangements of the central authorities while tailoring our efforts to the specific realities of Zhejiang, and swiftly constructing a modern industrial system that embodies the unique characteristics of our province. In essence, we aim to build a modern industrial system that is guided by the development of new quality productive forces, with advanced manufacturing as its core, propelled by technological innovation, and centered on digital economy; relying on modern transportation and logistics networks, and underpinned by modern infrastructure; and featuring a deep integration of modern services with advanced manufacturing and modern agriculture and a profound fusion of digital and real economy. 

We believe the following four aspects are of critical significance.

First, our approach entails establishing a "315" technology innovation system to develop new quality productive forces based on local conditions. In the "315" system, "3" signifies the building of three major hubs for science and technology innovation: internet plus, life and health, and new materials. And "15" means focusing on accelerating breakthroughs in 15 strategic areas essential for future development, including cloud computing and future networks, intelligent computing and artificial intelligence, and big data and information security. Our goal is to surpass a research and development intensity of 3.4% across society by 2027, with high-tech industries contributing 68% of the total value added by enterprises above designated size.

Second, our approach includes establishing "415X" advanced manufacturing industry clusters to expedite the development of a global advanced manufacturing hub. The construction of such an advanced manufacturing hub is a major strategic objective outlined in the "Double-Eight Strategy." The term "415X" represents our focus on consolidating superior resources to establish four advanced industrial clusters in next-generation information technology, high-end equipment, modern consumption and health, and green petrochemicals and new materials, each valued at 1 trillion yuan, as well as 15 featured industrial clusters valued at 100 billion yuan each and numerous high-growth emerging industrial clusters at the 10-billion-yuan level. By 2027, we aim to see the total revenue of enterprises above designated size within "415X" advanced manufacturing industry clusters surpass 12 trillion yuan, while maintaining the contribution of manufacturing value added to GDP at around one-third.

Third, we will implement the "Number One Development Project" to drive innovation and enhance the quality of the digital economy, empowering the upgrading of industrial and supply chain capabilities. Leveraging Zhejiang's first-mover advantages in developing digital economy, this project aims to exert digital economy's role to expand and multiply the results of socioeconomic development and better empower industrial development. We will move faster to foster strategic emerging industries like integrated circuits and artificial intelligence, while also accelerating the process of turning data into valuable assets. By 2027, we expect the digital economy's value added to exceed 7 trillion yuan, with core industries' value added surpassing 1.6 trillion yuan.

Fourth, we will continue to reach out for the further development of Zhejiang, enhancing our openness to the world. We are committed to seamlessly integrating high-level outbound cooperation with high-quality inbound cooperation, advancing institutional openness, and building world-class ports. We aim to drive the coordinated development of sea, air, land, and information ports, seeking to access, mobilize and allocate resources on a broader scale. By increasing openness, we will strive to create new opportunities for industrial development.

That's all from me. Thank you!

Chen Wenjun:

Thank you to Mr. Wang and other speakers. Thank you to all journalists. Today's press conference concludes here. Goodbye!

Translated and edited by Wang Qian, Zhang Rui, Gong Yingchun, Wang Ziteng, Yuan Fang, Ma Yujia, Li Xiao, Cui Can, He Shan, Mi Xingang, Wang Wei, Liu Sitong, Qin Qi, Zhang Junmian, Yan Bin, Zhang Tingting, 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.