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Read in Chinese

Speakers:

Lian Weiliang, vice chairman of the National Development and Reform Commission (NDRC)

Lin Nianxiu, vice chairman of the NDRC

Hu Zucai, vice chairman of the NDRC

Chairperson:

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

Date:

March 7, 2022

Xing Huina:

Friends from the media, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are joined by three vice chairmen of the National Development and Reform Commission (NDRC): Mr. Lian Weiliang, Mr. Lin Nianxiu and Mr. Hu Zucai, who will introduce the topic at hand and answer your questions.

Next, let's first give the floor to Mr. Lian Weiliang.

Lian Weiliang:

Ladies and gentlemen, friends from the press:

Good morning. On the morning of the day before yesterday, He Lifeng, head of the NDRC, was interviewed on the sidelines of the annual legislative session. Today, along with Mr. Lin Nianxiu and Mr. Hu Zucai, both vice chairmen of the NDRC, I'm very happy to meet you here. First of all, I would like to express my heartfelt thanks and respect to all friends from the media for your long-term concern, support and assistance to the development and reform work.

Since last year, the external environment has become more complex, severe and uncertain. China's economic development is facing threefold pressures of shrinking demand, supply shocks and weakening expectations. 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 have coordinated pandemic controls and socio-economic development, and innovated and improved macroeconomic regulations and controls, achieving higher growth and lower inflation. China has accomplished its main targets and tasks for last year, and the 14th Five-Year Plan (2021-2025) is off to a good start.

On the morning of March 5, Premier Li Keqiang delivered a government work report, making comprehensive arrangements for various tasks this year, and clarified the goals and tasks for economic and social development throughout the year. The draft plan on national economic and social development in 2022 has been submitted to the National People's Congress (NPC) for review and approval and to members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) for deliberation. The NDRC will conscientiously implement the decisions and deployments of the CPC Central Committee and the State Council, adhere to the principle of ensuring stability is a priority while making new progress, and focus on stabilizing the macroeconomic market, keep the economy operating within a reasonable range, maintain overall social stability, and take practical actions to greet the convening of the 20th National Congress of the CPC.

Now, we are willing to answer your questions.

Xing Huina:

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

CCTV:

In the face of the current pressure on China's economic and social development, it is necessary to focus on stimulating economic vitality through reform. What are the key tasks for reforming the economic system this year? How can we further stimulate economic and social development through reform? Thank you.

Lian Weiliang:

Thank you for your questions. Both the Central Economic Work Conference and the premier's government work report clearly stated that "reform and opening-up policies should lend impetus to development." The Party Central Committee and the State Council have deployed a series of major reforms to vitalize development. The NDRC will act on its new development philosophy, build on its new development paradigm, promote high-quality development, and earnestly implement these major reforms, particularly in the five areas of implementing reforms to stimulate the vitality of market players, to build a high-standard market system, to stabilize growth and expand domestic demand, to promote high-level opening-up, and to promote the transition to green and low-carbon growth.

First, we will accelerate reforms to stimulate the vitality of market players. We will complete the three-year action plan (2020–2022) for the reform of state-owned enterprises (SOEs), move faster to adjust and improve the layout and structure of the state-owned sector, and deepen the reform of mixed ownership actively and steadily. We will encourage and guide private enterprises to accelerate the pace of structural reform and achieve high-quality development. We will focus on the concerns of market players, continue to strengthen support for micro, small and medium-sized enterprises (MSMEs), and create a favorable environment for various market players to compete for development. We will advocate an entrepreneurial spirit and accelerate the building of world-class enterprises.

Second, we will accelerate reforms to build a high-standard market system. Efforts will be made to remove market barriers, improve the fundamental market system, and build a unified domestic market. We will carry out comprehensive pilot reforms of the market-based allocation of production factors, strive to achieve major breakthroughs in land, labor, capital and technology, and make significant progress in the basic system related to data. We will steadily promote market-oriented reform of competitive areas in key industries, accelerate the building of a unified national market system for electric power, and further improve the unified national oil and gas market system.

Third, we will accelerate reforms to stabilize growth and expand domestic demand. We will innovate the investment and financing system, promote reforms to introduce a business-invested project commitment system, improve investment facilitation, and better leverage private capital to expand effective investment. We will promote the quality and scale of consumption, further improve the consumption environment, and facilitate the continuous recovery of consumer spending. We will improve the institutions and mechanisms for distribution based on factors of production and expand the size of the middle-income group.

Fourth, we will accelerate reforms to achieve a higher level of opening-up. We will continue to promote institutional opening-up, ensure national treatment for all foreign-invested enterprises, further ease market access for foreign capital, and ensure that the negative list for cross-border service trade is fully observed. We will speed up construction of the Hainan Free Trade Port, and do a good job in the island-wide customs clearance operation. We will optimize services for foreign investors and speed up the implementation of major foreign investment projects.

Fifth, we will accelerate reforms to shift toward green and low-carbon development. Efforts will be made to achieve the peak carbon and carbon neutrality goals. We will improve assessment and statistical accounting systems for greenhouse gas emissions, and avoid one-size-fits-all or campaign-style approaches in carbon reduction. We will speed up improvements to policy incentives for reducing pollution and carbon emissions and policy constraints on such emissions, and launch trials for the trading of energy consumption rights and green power. We will improve the price formation mechanism and promote important breakthroughs in the ecological product value-realization mechanism.

In accordance with the requirements of the CPC Central Committee and the State Council, we will make full use of the "key tactic" of reform to inject strong impetus into the stable and healthy development of the economy and society.

Thank you.

Nikkei:

Recently, due to the impact of geopolitical conflict, commodity prices have risen sharply, which will inevitably have a negative impact on the Chinese economy to a certain extent. How will the NDRC mitigate the impact of rising commodity prices in order to sustain growth? Thank you.

Hu Zucai:

Changes in the prices of commodities such as grain, energy and minerals are related to people's wellbeing, industrial and agricultural production, and the macroeconomic market. Stable prices will ensure an orderly market, stable economy and society. The CPC Central Committee and the State Council attach great importance to the work of ensuring the supply and price stability of commodities.

Last year, due to factors such as the COVID-19 pandemic, excess liquidity and supply bottlenecks, the prices of international bulk commodities such as oil, natural gas, coal and iron ore rose sharply, driving up global inflation. Prices in many countries hit multi-year highs. For example, the U.S. consumer price index (CPI) rose 7% in December last year, hitting a 40-year high. China's economy is deeply integrated into the world economy. We purchase a relatively high proportion of oil, natural gas, iron ore and other commodities. Rising international prices have increased imported inflation pressure and pushed up the prices of domestic energy and raw materials. In October last year, the domestic producer price index (PPI) reached 13.5%, a new high for many years, which had an adverse impact on the production of enterprises and people's lives, and brought challenges to the stable operation of the macro economy. We fully implemented the decisions and arrangements of the CPC Central Committee and the State Council, coordinated pandemic controls and economic and social development, coordinated development and safety, took multiple measures, and adopted a series of measures to ensure supply and stabilize prices such as making supply and demand adjustments, carrying out market supervision and guiding expectations. All these measures have achieved positive results. The overall domestic price has remained within a reasonable range. Last year, China's CPI rose by an average of 0.9%, in sharp contrast to the high inflation in major international economies, playing an important role in stabilizing global prices.

Since the beginning of this year, influenced by multiple factors such as the COVID-19 pandemic, the adjustment of monetary policies of major economies, and in particular, the aggravation of geopolitical conflicts, the trend in global commodity prices presented to be more challenging and complicated with uncertainties. In recent days, the global oil price surpassed the US$110-per-barrel mark and soared to $139 today. Prices of coal, natural gas, and iron ore remained high, and there is a rising trend in prices of corn and other grains. All these pose a challenge to our work of ensuring domestic supply and stabilizing prices.

Generally speaking, China's economy features strong resilience and large market space. With abundant policy tools, particularly bumper grain harvest in consecutive years, adequate production of hogs, and sufficient supply of industrial and agricultural products and services, China has all the necessary conditions as well as the capability and confidence to continue to keep prices running smoothly. Therefore, the projected target for CPI increase at around 3%, which was set in this year's government work report, is achievable. In January of 2022, China's CPI rose by 0.9% year-on-year, much lower than the percentages in the United States and the eurozone, which were 7.5% and 5.1%, respectively. The year-on-year increase of PPI fell back to 9.1% in January, which was also substantially lower than the level of more than 20% in the eurozone.

To ensure the supply and stabilize prices of commodities are of weighty responsibility. Faced by the complicated and grave situation this year, we will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council, evaluate worst-case scenarios, implement policies in a comprehensive way, and strengthen precision regulation so as to make every effort to ensure the supply and stabilize prices of commodities.

First, we will make efforts to ensure the supply and price stability of grains to guarantee food security. Grain prices are the basis of all prices. The stability of grain prices can provide solid support for our efforts to stabilize all prices. China has sufficient stocks and supply of rice, wheat, and other types of grains, and therefore is fully self-sufficient. This year, we will ensure a stable sowing area and grain output and make efforts to ensure the supply and stabilize the price of chemical fertilizer. In this way, we will manage to keep grain output sufficient and its price stable, so as to ensure that the Chinese people can hold their bowls firmly. At the same time, we will strengthen our work to ensure the supply and the price stability of corn and soybeans, tap domestic potentials, make more efforts to improve the production capacity of soybeans and oilseed crops, reasonably make use of global resources, strengthen reserve adjustment, and maintain the balance between supply and demand.

Second, we will make efforts to ensure supply and price stability of energy to guarantee energy security. We will focus on the work to stabilize coal supply and prices. China's coal consumption accounts for 56% of the total energy consumption, and coal-fired power generation accounts for about 60%. If the coal price is stable, then the electricity price will be stable accordingly, and furthermore, the fundamentals of energy price will be stable. Recently, the NDRC issued a notice to further improve the pricing mechanism for the coal market, aiming at improving range-based regulation for coal prices and creating synergy between an efficient market and a well-functioning government. Next, we will fully carry out this major reform to ensure the implementation and effectiveness of reform measures. We will improve the coal production, supply, storage, and marketing system, improve the adjustment capacity of supply and demand, ensure a reasonable and sufficient production capacity, strengthen market expectation management, guide coal prices to run within a reasonable range, and improve the transmission mechanism of coal and electricity prices, so as to ensure a secure and stable supply.

Third, we will make efforts to ensure supply and price stability of major minerals to guarantee the security of industrial and supply chains. We will intensify our efforts on domestic exploration and development of iron ore, accelerate the construction of mineral products bases, expand the recycling of steel scrap and other renewable resources, enhance support capacity of domestic resources, strengthen import and export adjustment capacity, and resolutely curb the blind expansion of energy-intensive, high emission, and low-standard projects, so that we can ensure a secure supply and basic price stability of major minerals.

Fourth, we will keep a close eye on market trends and strengthen law-based market supervision. We will pay close attention to the supply and demand and price performance of key commodity markets and strengthen monitoring and analysis to keep abreast of the situation. We will keep high-standard market supervision and strengthen coordinated supervision of futures and spot markets. We will crack down on the fabricating and spreading word of possible price increases, price gouging, hoarding and profiteering, other violations of laws and regulations, and malicious speculation of capital in particular.

Fifth, we will make solid efforts to guarantee a basic living to people who encounter difficulties to ensure that their basic living needs are met. We will guide localities to earnestly implement a linkage mechanism of subsidies, and provide temporary subsidies in full and in a timely manner to effectively guarantee a basic living to people in difficulties.

Cover News:

Last year, there was a global shortage of energy supply, and some parts of China also saw a shortage of coal and electricity. Although we have ensured a stable supply of energy in a very short period of time, there are still worries about whether a similar situation would take place this year. What countermeasures does the NDRC have to ensure a stable supply of energy? Thank you.

Lian Weiliang:

Thank you for your question. Last year, we indeed faced grave challenges in our efforts to ensure energy supply. China's capability to turn the tide in a short time to ensure energy supply in some places is mainly attributable to the close attention of the CPC Central Committee and the State Council. In recent years, China has planned in advance the construction of energy production, supply, storage, and marketing systems and continued to increase the effective supply of energy. In key window period before the heating season, decisive policies were made, and a series of practical policies and measures were quickly adopted, such as increasing coal production and supply, ensuring full operation of generator units, making early preparation, and keeping sufficient storage of natural gas, as well as coupling the price of coal with that of electricity in a reasonable way. China's institutional strength also helps enhance its capability to ensure energy supply. We have implemented full coverage of medium and long-term contracts for thermal coal and coal used for heating, guided coal prices to return to a reasonable range, and ensured that people's basic energy needs are met. Generally speaking, the energy supply and demand in the heating season was relatively stable, coal stockpiles for heating at power plants were adequate for no less than 20 days of consumption, and there was neither power nor gas rationing. All these have effectively ensured the smooth running of economic and social development as well as a warm winter for all residents.

We understand that our people remain concerned about the energy supply of this year. The global energy supply has been in continuing shortage, both the rapid recovery of our country's economy and rapid growth of exports have driven the rapid increase of energy demand, and our efforts to steadily achieve the carbon-peak and carbon-neutralization goals have required for an accelerated transformation into clean and low-carbon energy, all of which put forward new and higher requirements for ensuring energy supply. China has been deeply integrated into the global economy. The rise in global commodity prices has driven the demand for energy-intensive products, and geopolitical conflicts and changes in global energy supply and demand will affect the security and reliability of the energy supply in our country.

Despite the increasingly unpromising challenges we are facing, China has the condition, ability, confidence and solutions to ensure a secure and reliable supply of energy. In accordance with the deployment and requirements of the CPC Central Committee and the State Council, we will give full play to the coordination mechanism for coal, electricity, oil, gas, and transportation services and focus on ensuring energy supply from four aspects. To be specific, we will emphasize the three "intensifies" and one "ensure," that is, to intensify efforts to increase production capacity, intensify efforts to guarantee reserves, intensify efforts to ensure a stable supply and price, and ensure that people's basic energy needs are met.

First, we will intensify our efforts to increase production capacity. We will vigorously promote the construction of large-scale wind power and photovoltaic bases in sandy areas, rocky areas, and deserts, and build a significant number of peak-shaving plants that utilize pumped storage for electricity generation, by which ways we will increase the effective output of various power generation in a coordinated manner. We will greatly increase investment in oil and gas exploration and development to promote the increase of petroleum and gas reserves and output and free up advanced coal production capacity in an orderly way to maintain the coal output at a reasonable level.

Second, we will intensify our efforts to guarantee reserves. We will accelerate the construction of government- deployable coal reserve capacity to more than 200 million tons, add gas storage facilities of more than five billion cubic meters, increase the electricity supply of pre-emergency and peak-shaving plants to more than 300 million kilowatts, and guide major energy production enterprises and large energy consumers to strengthen their consciousness of social responsibility.

Third, we will intensify our efforts to ensure a stable supply and stable prices. We will give full play to the role of medium and long-term energy contracts and achieve full coverage of medium and long-term contracts for coal, electricity, and gas services in key areas related to people's livelihood and economic development. We will help keep coal prices running within a reasonable range and improve the transmission mechanism of coal and electricity prices.

We will make efforts to ensure that people's basic energy needs are met. Although we are guaranteed with reliable energy supply capacity, with the significant increase in the proportion of unstable power sources, such as climate-vulnerable wind power and photovoltaic plants, residents and enterprises have higher and higher requirements for reliable energy to meet their living and production needs. Through a larger margined, more secure, and more reliable supply guarantee plan, we will ensure energy security and supply in all situations. We will ensure that there will be neither electricity nor gas rationing unless in extreme cases, and even if there's an extreme case, the switches and valves will not be turned off. Supported by the above comprehensive measures, we will ensure the security and reliable supply of energy in China and reassure our people and all energy users.

Thank you.

Reuters:

China set a 5.5% GDP growth target for this year, which is believed by many analysts as a bit difficult to achieve and may require much stronger policy support. What's your take on that? Also, do you have fears of the negative effects of stimulus policies, for example, lower investment efficiency, excess capacity, and possible risks of an asset bubble? In addition, what is the impact of the Ukraine crisis on the Chinese economy and the Belt and Road Initiative (BRI)? Thank you.

Lian Weiliang:

Thank you for your questions. Premier Li Keqiang made a thorough explanation on this year's growth target and the measures to achieve it. The government work report emphasized that the target of around 5.5% represents a medium-high growth rate from a large base figure and demonstrates the country's ability to move proactively. Achieving this goal will require arduous efforts.

NDRC Chairman He Lifeng also expounded on ways to achieve the GDP growth target as he joined the "minister aisle" interview on the sidelines of the ongoing "two sessions." We are well poised to achieve this year's target. We have ample room for development, which is created by implementing the new development philosophy, building the new development paradigm, and promoting high-quality development. We have also accumulated practical experience in driving high-quality development against the backdrop of the COVID-19 pandemic. Particularly, we have an effective policy mix, including prudent and effective macro policies, micro policies that continuously stimulate the vitality of market entities, structural policies that ensure smooth flow of economic activity, policies in the sci-tech sector that energize innovative potential, reform and opening-up policies that drive development, policies that promote more balanced and coordinated regional development, as well as social policies that meet people's basic living needs.

More importantly, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we have accumulated rich experience in developing new ways to improve macro regulation as we address various risks and challenges. We have both macro-policy tools and space available to us, and we used them to intensify cross- and counter-cyclical adjustments. We did not adopt a deluge of strong stimulus policies but paid attention to the precision, efficiency, and sustainability of policies. While making sure we achieve the growth target, we effectively avoided problems such as lower investment efficiency, excess capacity, and asset bubble.

This year, we will work on the following three aspects to achieve the GDP growth target. First, we will pay more attention to the implementation of major decisions, issue more policies and measures to further expand domestic demand, and strive to maintain the sound development momentum of foreign trade. Second, we will enhance the coordination of macro policies in order to unleash their combined role in stabilizing growth. In particular, we will strengthen the assessment and analysis of newly issued policies in order to accelerate policies that contribute to economic stability and keep an eye out for policies that work otherwise. Third, we will attach more importance to addressing various risks and challenges, and ensuring food security, energy security, and the stability of industrial and supply chains. We will also work on pandemic control in a more precise manner.

As to the possible impact of the Russia-Ukraine conflict, we are paying as much attention as you do. The conflict brings more uncertainty to global economic development. I want to emphasize that the Chinese economy has strong resilience, ample potential, and adequate space for development. Though the external environment is becoming more complicated, the fundamentals underpinning China's long-term growth remain sound. China is still able to keep its major economic indicators within the appropriate range. Regarding the BRI, both Russia and Ukraine are participating countries of the initiative. China will work along with all participating countries of the Belt and Road, including Russia and Ukraine, to promote the high-quality development of the Belt and Road in the Silk Road spirit of peace and cooperation, openness and inclusiveness, mutual learning, and mutual benefit. We also look forward to seeing the concerned parties peacefully resolve the issues through dialogue, and minimize the conflict's impact on the world economy.

Thank you.

Economic Daily:

The internal and external environment that China faces has undergone significant changes. The Central Economic Work Conference held last year underlined the smooth operation of the industrial chain. Can you please introduce the efforts on maintaining the security and stability of industrial and supply chains and what new measures will be taken in the future? Thanks.

Lin Nianxiu:

Maintaining the security and stability of industrial and supply chains is a strategic requirement of building the new development paradigm. It also matters to China's long-term development and security. The CPC Central Committee and the State Council attach great importance to the security and stability of the industrial and supply chains. General Secretary Xi Jinping has made important instructions on numerous occasions, pointing out the direction and providing the fundamental principles for us. In recent years, the NDRC has worked along with other departments to earnestly implement decisions and policies of the CPC Central Committee and the State Council, shored up the industrial economy, resolved impediments to industrial development, and smoothened economic circulation. This has contributed to a much stronger resilience of industrial and supply chains and increased our capability of maintaining the security and reliability of industrial and supply chains. This can be seen in the following four aspects.

First, a more stable operation. The industrial economy continued to develop steadily. In 2021, industrial added value above the designated size rose 9.6% year on year. Key industries and sectors maintained stable operation. We managed to maintain the supply and steady the prices of commodities and raw materials, effectively guarding against the impact brought to industrial and supply chains by undue fluctuations in prices.

Second, a better structure. We made breakthroughs in key and core technologies, achieving unprecedented results and making major improvements in a number of sectors. Companies generated more vitality and improved their cost-effectiveness. A number of outstanding companies and key equipment have become a calling card of China. A batch of small and medium-sized companies with high growth potential, advanced technology, strong market competitive edges as well as single-product specialists emerged more quickly and showed a promising outlook. Strategic emerging industrial clusters with unique characteristics and complement each other develop and thrive nationwide, adding to the efforts of maintaining stable industrial and supply chains.

Third, stronger development momentum. Industrial sectors amassed great momentum in transformation, upgrading and technological innovation. In 2021, China's high-tech industry saw its investment rise 17.1% year on year, 12.2 percentage points higher than that of investment in general. The manufacturing industry saw its investment in technological transformation rise 13.6% year on year, higher than the growth rate of overall investment in the manufacturing industry, adding new impetus to improving industrial and supply chains.

Fourth, stronger competitiveness. China's exports and global market share created record highs. In 2021, the export delivery value of industrial enterprises rose 17.7% year on year. China's 5G network facilities and applications led the world. The production and sales of new energy vehicles topped the world for seven consecutive years. The production of photovoltaic modules accounted for more than 70% of the world's total. Power transmission and transformation and rail transit already led the world. Industries with strong competitiveness continued to grow, and they have taken up a much better position in global industrial and supply chains.

We should also be keenly aware that facing the complex and volatile international environment and domestic conditions, we still face multiple difficulties and challenges in keeping industrial and supply chains safe and stable. This year's work requires extraordinary efforts from us. Next, the NDRC will work with related departments to take effective measures to keep industrial and supply chains secure and stable. We will continue our major work in five aspects as follows:

First, we will continue to shore up weaknesses. The amount of water a bucket can hold is determined by its shortest plank. Major weak links in industrial chains always hinder the healthy development of the economy. We will focus on key areas concerning the economy, people's wellbeing, as well as strategic and security matters. Dealing with bottleneck problems will be our focal point. We will coordinate the efforts to strengthen weaknesses, promote iterative applications, improve the industrial ecology, and make breakthroughs in key and core technologies. We will implement projects for rebuilding industrial foundations, strengthen weaknesses in basic industries, and cement the foundation for industrial and supply chains.

Second, we will continue to build up and harness our strengths. Our strength maintains the core competitiveness and a powerful and effective tool for industrial competition. We should work to build up our strength. First, we will expand strength in upgrading traditional industries. We will step up efforts to implement the Five-Year Action Plan on Enhancing Core Competitiveness in the Manufacturing Sector. We will increase competitive edges throughout the complete industrial chains and in major areas. Second, we will increase strength in fostering emerging industrial chains. We will seize the opportunity to develop cutting-edge industries and deepen our efforts to develop national strategic emerging industrial clusters. Efforts will be made to accelerate the development of new industries, new business forms, and new models.

Third, continue to eliminate bottlenecks and restrictions. Smoothing economic circulation is the key to stabilizing industrial and supply chains. At present, we will focus on solving the chip shortage problem in the automobile and other manufacturing industries. Last year, due to multiple reasons, there was a global shortage in chips supply, which we will tackle this year. We will continue to ensure the stability of supplies and prices for bulk commodities and raw materials; improve the production, supply, storage, and marketing systems; and strengthen effective supervision of futures and spot markets. We will also carry out projects to link the industrial and supply chains in key fields; set up industrial coalitions in collaborative R&D, product development, and experimental verification; and rely on leading enterprises to guarantee and stabilize industrial and supply chains.

Fourth, we will continue to deepen opening-up and cooperation. We will support the development of cross-border e-commerce and overseas warehouses and promote the efficient operation of industrial and supply chains in the foreign trade sector. We will make better use of foreign investment, encourage foreign-invested enterprises to expand investment in high-end manufacturing and high-tech fields, and support the innovative development of foreign-funded R&D centers. We will also implement regional trade agreements such as RCEP, make good use of various multilateral mechanisms, and establish a mutually beneficial cooperation system for industrial and supply chains.

Fifth, we will continue to strengthen risk prevention. We will establish a risk monitoring system for industrial and supply chains and improve mechanisms for risk assessment, early warning and response so as to enhance our capability to identify and accurately handle risks. We will tighten all parties' responsibilities and strive for early detection, reporting, assessment, and response of risks in order to guarantee the stable operation of industrial and supply chains. Thank you.

Beijing News:

In recent years, due to a rapidly increasing elderly population and gradually increasing costs of raising children, many Chinese people feel the pressure of having to take care of both. What policies will be taken to expand the supply of elderly care and child care services? Thank you.

Lian Weiliang:

Thanks for your question. Elderly care and child care are the most popular issues currently concerning people's livelihoods, with topics such as aging population, the three-child policy, and taking care of elderly and young children frequently trending on the internet. The CPC Central Committee and the State Council have attached great importance to this issue. General Secretary Xi Jinping emphasizes that we should pay high attention to solving the problem of elderly care and child care, accelerate the system of services for the elderly, and support social forces to develop public accessible child care services. In this year's government work report, unveiled during the ongoing "two sessions," Premier Li Keqiang emphasizes the need to improve elderly care in urban and rural areas and publicly-accessible child care services. Increasing the effective supply of elderly care and child care services will be a key task for this year's economic and social development. In this regard, we will focus on three aspects: improving both quantity and quality, ensuring accessible and nearby services, and exercising strict supervision and regulation.

First, we will improve both the quantity and quality of care. At present, the social demand for elderly care and child care, especially high-quality services, is very urgent. By the end of the 14th Five-Year Plan period (2021-2025), there will be more than 9 million elderly care beds and over 6 million nursery positions for infants and young children in the country. We will expand the scale of high-quality resources to meet the public's needs. For those nursing homes and nursery institutions where it is hard to find a bed or position, the central government budgetary investment will give key support. Relevant policies including fiscal and taxation, credit, land, and talents will be implemented so as to greatly increase the high-quality resources supply of elderly care and child care services.

Second, we will ensure accessible and nearby services. After years of development, the total number of nursing homes and elderly care beds has increased significantly. However, the utilization rate of some beds is not high. Apart from the epidemic impact in the past two years, another important reason has been the mismatch between supply and demand or the lack of precise and quality supply. The public's most needs are affordable, convenient, accessible, and nearby services. Therefore, the focus of improving both quantity and quality is to ensure accessible and nearby services. Accessible means that the government should give greater policy support to help service agencies reduce costs and then lower prices for consumers. Nearby means to fully implement the requirements of providing elderly care and child care services in communities. At the same time, we will guide all kinds of elderly care and child care services to extend to communities and families.

Third, exercising strict supervision and regulation. The quality and reliability of elderly care and child care services are currently the most concerning problem. At present, there are indeed a number of problems in this regard. For example, some institutions provide low-quality services but charge unreasonable fees, which brought about consumer complaints. Some institutions lack integrity, or even cheat the elderly out of their money and then make off, which seriously impacts the bottom line of social morality and law. To prevent this, we will strengthen the coordinated supervision and regulation and further optimize standards and norms so as to comprehensively improve the service quality and level of elderly care and child care.

After the epidemic, China will witness a recovery and rapid growth of elderly care and child care services, which ask us to fully prepare for and increase its effective supply. Thank you.

Xinhua News Agency:

Since the outbreak of the epidemic, relevant departments have adopted a series of policies to boost consumption. However, the recovery of consumption is still relatively slow. How do you forecast the consumption situation this year? What other policies will be adopted to promote consumption? Thank you.

Lian Weiliang:

Mr. Hu will answer questions about consumption.

Hu Zucai:

Thanks for your question. Consumption is the final demand, the lasting driving force behind economic growth, as well as an important guarantee to meet people's growing needs for a better life. The CPC Central Committee and the State Council have attached great importance to this issue. We have steadfastly implemented the strategy of boosting domestic demand, carried out a series of policies and measures to promote consumption in an orderly manner, and consolidated the fundamental role of consumption in economic development.

In 2021, sporadic COVID-19 cases were reported in China, which affected consumption a lot. We earnestly implemented the decisions and plans of the CPC Central Committee and the State Council, coordinated pandemic prevention and control with socioeconomic development, and promoted the improving and upgrading of consumption, which have boosted its recovery. China's retail sales of consumer goods totaled 44.1 trillion yuan last year, up 12.5% year on year, with final consumption expenditure contributing 65.4% to full-year economic growth. Driving GDP growth by 5.3 percentage points, China's consumption has re-established itself as the biggest driver of economic growth. At the same time, there are many new hotspots and highlights in the consumption sector. For example, online consumption bucked the trend and grew, and the online sales increased 14.1% year on year. The development of green consumption accelerated, with sales of new energy vehicles increasing 160% year on year. The demand for upgrading consumption became stronger, with retail sales of sports and fitness consumer goods maintaining double-digit growth. Thanks to the momentum from the Beijing 2022 Winter Olympics, the consumption of ice and snow sports-related products continues to grow. Since January, online sales of ski suit and skiing equipment increased by 110.7% and 61.6%, respectively.

China enjoys a huge domestic demand market, with a population of over 1.4 billion and the world's largest and fastest-growing middle-income group. Last year, China's per capita GDP reached around 12,500 U.S. dollars, which is close to the threshold of the World Bank's standard for high-income countries. With the steady increase in personal income, a huge demand for upgrading consumption will emerge, and the momentum of sustained growth in consumption will remain unchanged. At present, consumption is getting more diversified, personalized and high-quality, and intelligent, green, and healthy consumption has become a new trend for residents. The strong domestic market provides solid support for the fostering of a new development dynamic, with the domestic economy and international engagement reinforcing each other and the former as the mainstay. However, due to the epidemic and other factors in the past two years, consumption of some of the services that entail face-to-face contact, population movements and gathering of people has been seriously affected. Last year, the passenger volume in China dropped 14.1% year on year, and the number of domestic tourists and the domestic tourism revenue only recovered to 54% and 51% of that of 2019, respectively. Therefore, the task to promote sustained recovery of consumption is still arduous.

This year's government work report made comprehensive deployments for boosting consumption in 2022. The NDRC will firmly implement the strategy of boosting domestic demand, further unleashing consumption potential, and taking multiple measures to promote sustained recovery of consumption on the basis of targeted and effective epidemic prevention and control. We will focus on the following aspects.

First is to enhance consumption capability. We will strengthen pro-employment policies, implement measures to stabilize employment, support innovation and business startups in creating jobs, and provide targeted employment support for key groups so as to increase workers' incomes through fuller and higher-quality employment. We will further improve social security, optimize income distribution structure, increase incomes of low- and middle-income groups, and further expand the middle-income group, which will lay a solid foundation for expanding consumption.

Second, we will cultivate new growth areas of consumption. We will better meet the needs of conducting pandemic prevention and control on an ongoing basis, actively develop online consumption, and promote the deep integration of online and offline consumption. We will also cultivate and expand new consumption forms and models such as smart retail, smart tourism, digital culture, and smart sports. We will vigorously develop ice and snow tourism and ice and snow consumption, and promote the implementation of the action plan for the development of ice and snow tourism. We will work harder to promote the consumption of services such as nursing care for the elderly and children, and develop elderly-friendly technologies and products and products safe and healthy for infants. We will upgrade and expand domestic services. And we will further expand county- and township-level consumption, and speed up the integration of e-commerce and express delivery systems in counties, townships and villages. At the same time, we must implement relief and assistance measures to support industries in difficulties, such as catering, retail, tourism, and transportation; promote recovery in consumption of consumer services; and steadily increase major consumption.

Third, we will vigorously develop green consumption. We will fully carry out the implementation plan for promoting green consumption recently issued by the NDRC. On the one hand, we must promote the expansion of the supply and consumption of green and low-carbon products. We will comprehensively promote green and low-carbon building materials, continue to support the consumption of new-energy vehicles, and encourage local governments to promote spending on green and smart home appliances in rural areas as well as the replacement of old home appliances. On the other hand, we will advocate a simple, moderate, green and low-carbon, civilized and healthy lifestyle and consumption model, and make green consumption a new fashion. We will enhance the national awareness of resource conservation, carry out in-depth food conservation campaigns such as the "Clear Your Plate" campaign, promote the greening, reduction, and recycling of commodity packaging and commodity distribution, and strengthen the recycling of waste and old materials.

Fourth, we will create a safe and secure consumption environment. We will optimize the urban consumption network under the framework of domestic circulation, promote the cultivation and construction of international consumption center cities, and promote the creation of regional consumption centers. We will improve community commercial supporting facilities, build a convenient urban living circle, and improve consumption infrastructure and service environment. We will strengthen the building of the consumer credit system and the quality standard system, improve the diversified consumer rights protection mechanism and dispute resolution mechanism, increase the quality and safety supervision of consumer goods, crack down on counterfeit and shoddy products, strengthen the protection of consumers' rights and interests, and strive to improve people's consumption experience and their willingness to consume. Thank you.

Zhinews of Shenzhen Satellite TV:

In recent years, the NDRC has taken the lead in establishing a business environment evaluation system, and has carried out multiple rounds of evaluations, covering hundreds of cities across the country. What achievements and progress have been made in China's business environment assessment work? What are the priorities for optimizing the business environment this year? Thank you.

Lian Weiliang:

Mr. Lin Nianxiu, please answer the questions.

Lin Nianxiu:

Establishing a business environment evaluation system that conforms to China's national conditions and conducting business environment evaluation is an institutional arrangement made by the Regulations on Optimizing Business Environment. Since 2018, the NDRC has led the establishment of China's business environment evaluation system in accordance with the deployment of the CPC Central Committee and the State Council. So far, six batches of evaluations have been carried out. A total of 98 cities across the country have participated in the evaluations, covering 31 provinces, autonomous regions, and municipalities. In this process, we have formed three "1+N" working mechanisms in systems, indicators, and reports for optimizing the business environment, which have effectively promoted the optimization and upgrading of business environment nationwide.

Regarding these three "1+N" mechanisms, the first is the system "1+N". "1" is China's "Regulations on Optimizing Business Environment", and "N" is the supporting regulations and policies issued by various regions. For the indicator "1+N", "1" is the evaluation indicator system of China's business environment, including 18 major items and 87 small items, and "N" is the indexes added by local governments in accordance with local situations. As for the report "1+N" mechanism, "1" is the "China Business Environment Report" issued by the NDRC every year, and "N" is the local self-assessment reports. Each region has carried out targeted reforms in line with the national indicator system. At present, 28 provinces, autonomous regions and municipalities have formulated local regulations. Many cities' plans for optimizing business environment have been upgraded from version 1.0 to version 5.0, while all regions are showing enormous enthusiasm to compete with each other to optimize their business environment.

You all know that business environment is the soil for the survival and development of enterprises, and the quality of the "soil" is directly related to the vitality of market entities and the driving force of economic development. The NDRC will conscientiously implement the deployment of the CPC Central Committee and the State Council, focus on key points, continue to make efforts, and strive to create a market-oriented, law-based, internationalized, and convenient top-class business environment to better cultivate and stimulate the vitality of market players. To sum up, the next key measures can be summarized in five words, namely, "fairness, justice, openness, convenience, and satisfaction."

Fairness means continuing to relax market access, allowing enterprises to enter and compete on an equal footing. We will focus on implementing list-based management and fully implement administrative systems such as the negative list for market access and the list of items requiring administrative licensing. The most urgent task is to speed up the removal of hidden barriers in the market, break down the "glass door", clean up and abolish regulations and practices that hinder a unified market and fair competition, and ensure that various market players can equally use various production factors and public service resources in accordance with the law.

Justice means implementing scientific and effective supervision, enhancing corporate investment confidence, and stabilizing market expectations. We will focus on promoting the "three meticulous implementations." The first is to meticulously implement the "Regulations on Optimizing Business Environment" and solve the "last-mile" problems in the implementation of laws and regulations. The second is to meticulously implement supervision system rules, strictly regulate administrative law enforcement, and implement "double randoms, one disclosure" supervision (i.e. randomly select inspection objects and inspectors, and disclose the results timely), credit supervision, smart supervision, remote supervision, and mobile supervision. The third is to meticulously implement the regulations and procedures for formulating enterprise-related policies, allowing entrepreneurs to actively participate in policy formulation so that policy measures are more grounded, operational, and effective.

Openness means treating domestic and foreign enterprises equally and promoting the stable development of foreign investment and foreign trade. On the one hand, we will focus on the implementation of the Foreign Investment Law and supporting regulations, implement the catalog of industries that encourage foreign investment, and promote the implementation of major foreign investment projects. On the other hand, we will intensify our efforts to serve and guarantee foreign-funded enterprises and make every effort to coordinate and resolve the reasonable demands of foreign-funded enterprises so as to make China an attractive investment destination in the long run.

Convenience means improving the quality and efficiency of government services and making it more convenient and efficient for enterprises and the people to proceed with their businesses there. The emphasis is on "three pushes". The first is to push forward the quality and efficiency of window services, enhance the "one-stop" service function at government service halls, and promote the integrated handling of more government affairs. The second is to push forward the deep integration of online and offline services, and strengthen the coordination between the physical government service hall and the online government service platform, so as to facilitate enterprises and the people to handle their procedures there. The third is to push forward the optimization of the technology empowerment process, develop more digital service scenarios, and realize a broader range of online and cross-province one-stop services.

Satisfaction means playing the role of evaluation in guidance and supervision, stimulating local governments to introduce stronger and more practical measures recognized by market entities. Whether the business environment is good enough should be judged by enterprises. We will continue to improve the evaluation mechanism that focuses on the satisfaction of market players and the public, promote the evaluation of China's business environment in an orderly manner, guide and support more cities to make up for their shortcomings and weaknesses in line with advanced practices, and actively carry out reforms and innovations. For example, we will introduce a new measure to establish a "collection and notification system for cases that damage business environment." We will collect the problems that damage the business environment in different places and take the collected problems and rectification progress as an important part of China's business environment evaluation so as to promote solutions one by one. Thank you.

Market News International:

The conflict between Russia and Ukraine continues to escalate, and international oil and gas prices continue to rise further. Does China have any plans to ensure the supply of energy? Will you consider increasing imports? What are the appropriate import channels that China can utilize? Thank you.

Lian Weiliang:

Thank you for your questions. The recent escalation of the conflict between Russia and Ukraine has had an impact on the global energy market, and international crude oil and natural gas prices have risen greatly. Due to the high proportion of China's crude oil and natural gas being from outside its border, we will definitely be affected, and the import cost will rise. But overall, the impact is controllable. This is because, on the one hand, China is a big energy consumer and also a big energy producer, so the overall energy supply is guaranteed. The sources of China's crude oil and natural gas imports have been diversified, and long-term contracts account for a high proportion. As long as all parties comply with the contracts, imports can remain generally stable. At the same time, China is vigorously promoting the high-quality development of renewable energy and accelerating the implementation of renewable energy substitution. The rapid increase in clean energy will also effectively hedge and mitigate external impacts. In the past year, the proportion of clean energy in our total energy consumption has increased by 1.2 percentage points; in the national power generation in the past year, the proportion of power generation from wind power and photovoltaics increased by 2.2 percentage points. In addition, our current CPI is at a low level. Just now, Mr. Hu Zucai introduced the situation. We will take comprehensive measures to alleviate the impact of imported inflation.

As for how to ensure energy security and stabilize supply, we will make efforts in the following four aspects, as I mentioned just now. This includes expanding production capacity, increasing energy reserve, ensuring supply and stabilizing prices, and resolutely working to meet people's basic living needs of energy. These measures center on two keywords, namely "increasing" and "stabilizing." We need to increase the capacity and volume of production, the reserve, and the supply of energy. In the meantime, we also need to stabilize energy imports, prices, and relevant expectations. With the implementation of these measures, we have the confidence to ensure energy security and reliable supply, and meanwhile promote the green and low-carbon transformation of energy in an orderly manner.

Thank you.

21st Century Business Herald:

The Report on the Work of the Government notes that China will continue expanding effective investment this year. In this regard, new infrastructure is one of the key aspects. For example, the east-to-west computing resource transfer project launched in February has caught the attention of many market players. What progress has China made in the construction of new infrastructure facilities? What are the key tasks this year? Thank you.

Lian Weiliang:

Mr. Lin will take these questions.

Lin Nianxiu:

Accelerating the construction of new infrastructure facilities is a major decision made by the CPC Central Committee and the State Council, and also a key task stipulated in the Outline of the 14th Five-Year Plan (2021-2025) for National Economic and Social Development. It is of paramount significance to the promotion of the digital transformation of economy and society and realizing high-quality sci-tech self-reliance. The new infrastructure we proposed mainly consists of three categories concerning information technologies, integrated development, and sci-tech innovations. In recent years, the NRDC has worked with relevant government bodies to carry out a series of projects focusing on these three categories. We have seen sound progress and made new achievements in the following three aspects.

First, a new development foundation has been built for the digital economy. In recent years, China's construction of information infrastructure has sped up remarkably. We established the world's largest and most advanced network of information and communication. China's 5G network has covered all of its prefecture-level cities, the majority of counties, and most townships and villages. The gigabit fiber-optic networks have been rolled out across the country, which is able to cover 300 million households. The overall layout for the national integrated big-data center system has also been completed. Since 2021, the NDRC has approved the construction plans of eight national computing hubs and has comprehensively launched the east-to-west computing resource transfer project. The project aims to give full play to the respective advantages of the east and west regions and translate the demand for computing capacity in the east into a growth momentum in the west so as to further realize nationwide coordination of energy and computing capacity. The civil space infrastructure has also witnessed rapid development. Currently, China's remote-sensing satellite system has realized global observation. In major fields, the self-sufficiency rate of data collected by domestic satellites exceeds 90%.

Second, new pillars have been created to support high-quality development. Regarding the construction of infrastructure that promotes integration, China's capacity of using information technologies has been greatly enhanced in advancing the intelligent transformation of traditional infrastructure facilities, facilitating economic upgrading and transformation, and improving people's livelihood. For instance, in terms of smart transport, we have seen remarkable progress in the intelligent transformation of ports and freeways. Digital map achieved full coverage, and the e-tickets have been rollout out comprehensively. Electronic waybills have been applied to more than 90% of express delivery services. People's traveling experiences and other logistic services have been greatly facilitated. In terms of the intelligent transformation of the energy sector, China introduced the world's first high-reliability 5G network for coal mines. After renovation, these coal mines have extensively adopted unmanned operating systems, and the number of employees working at high-risk posts has been reduced by more than half. This has effectively safeguarded people's possessions and lives. In terms of industrial internet, more than 2,000 "5G plus industrial network" projects have been carried out across China, which became a crucial pillar supporting the recovery of work and production and maintaining stability of industrial and supply chains. To sum up, 5G network not only facilitates online shopping activities but also improves the efficiency of industrial manufacturing and makes it more intelligent.

Third, new advantages have been fostered for high-level self-reliance. Since the 18th CPC National Congress, China has made many breakthroughs in the innovation of infrastructure. In terms of the number of projects, China has already made plans and established a total of 57 major sci-tech infrastructure facilities. With a group of high-level infrastructure projects set to be built in the next five years, the number of large-scale infrastructure projects in China will rank among the top globally. Compared with the rest of the world, China's major sci-tech infrastructure has seen remarkable improvement. We were mostly left behind five years ago, but the gap nowadays keeps narrowing down, and we have even become a world-leading force in certain fields. For instance, our Five-hundred-meter Aperture Spherical Radio Telescope (FAST), also dubbed the "China Sky Eye," has made many important astronomical discoveries. China's experimental advanced superconducting tokamak (EAST), or the Chinese "artificial sun," has achieved a reproducible, stable, and continuous plasma operation for the first time. It achieved a plasma temperature of 120 million degrees Celsius for 101 seconds, which is truly remarkable.

Regarding the application of sci-tech achievements, a group of strategic industrial technologies has been developed in recent years, and a number of major issues associated with society and people's livelihood have been addressed. For example, the Shanghai Synchrotron Radiation Facility has explored new solutions for the efficient use of natural gas and shale gas, which provides a strong basis for our future exploitation work of the two resources. The Heavy Ion Research Facility in Lanzhou has developed a heavy ion device for cancer treatment, which is a major breakthrough in high-end medical instruments. In this sense, these seemingly highly-advanced major sci-tech infrastructure facilities are actually closely associated with us and are profoundly changing the way of production and life.

The Central Economic Work Conference for 2022 proposed that infrastructure investment should be implemented in advance in a moderate manner. In accordance with relevant arrangements and requirements, the NDRC will ramp up efforts in the following three aspects:

First, the NDRC will speed up the construction of projects in major fields. To begin with, efforts will be made to accelerate the improvement of internet facilities. We will work to carry out the project that improves basic internet facilities in small and medium-sized cities in central and western China as well as the demonstration projects featuring 5G integration and application. By doing so, we can narrow the digital divide and strengthen weak links in application. We will also unify the efforts in rolling out the construction of node-like facilities. We will accelerate the building of ten national data center clusters and implement, in a stable and orderly manner, the construction of the new National Internet Exchange Center and key junctions of direct internet connection. In addition, we will deploy forward-looking facilities in advance. We will accelerate the efforts to implement the preparatory work of projects, speeding up the launch, execution and construction of major sci-tech infrastructure projects that are stipulated in the 14th Five-Year Plan. We will also launch a group of pre-research projects in a timely manner and continuously enhance China's capacity of the original innovation.

Second, the NDRC will fully mobilize the initiative of investment among market entities. We need to make sufficient efforts in three aspects. For starters, we will leave enough room for private capital. Since new infrastructure facilities are invested and established mainly by market entities, we will further expand market access and lower the entry threshold of investment in a bid to fully leverage the role of private capital in the sector. We will also provide sufficient policy support. We will boost credit support for the construction of new infrastructure, innovate financial tools, and expand the channel of financing, providing more favorable conditions especially for private businesses that participate in the construction of new infrastructure. In addition, we will ramp up efforts to accelerate the reform in relevant sectors, support enterprises to carry out technical and business model innovation, create a market environment featuring fair competition, and foster new growth momentum for the economic and social development.

Third, we will realize our carbon peak and neutrality goals and advance green development. The period covered by the 14th Five-Year Plan will be the first five years since China set its carbon peak and neutrality goals. In line with the deployment of the CPC Central Committee and the State Council, the NDRC issued an implementation plan for the green and high-quality development of new infrastructure such as data centers and 5G at the end of last year. The implementation plan made comprehensive arrangements for improving computing power and energy efficiency, optimizing energy-saving models, facilitating innovations in energy efficiency technology, and promoting economic transformation and upgrading. We will focus on the plan and step up efforts in energy conservation and emission reduction in the next step. In terms of energy conservation, we will support breakthroughs in high-efficiency energy conservative technologies, improve energy efficiency standards for ultra-large data centers, and carry out demonstration projects for energy-saving in 5G networks. In terms of emission reduction, we will promote the coordinated development of 5G facilities, computing resources, and renewable energy, support the transfer of more data centers to the western regions rich in renewable energy, and gradually reduce carbon emissions while increasing the supply of computing capacity. Thanks!

China Development and Reform News:

My questions are about new urbanization. According to the 2021 statistical communiqué, China's urbanization rate of permanent residents registered 64.72%. Will the previous rapid growth rate be sustained? What are the key tasks for new urbanization this year? Thanks.

Hu Zucai:

Thank you for the questions. Urbanization is essential for modernization and holds the greatest demand potential in China. It plays a vital role in promoting steady and healthy economic and social development, fostering a new development paradigm, and building shared prosperity. General Secretary Xi Jinping emphasized that a uniquely Chinese approach to urbanization will continue to guide the people-centered new urbanization process. Over the past year, we have implemented the plans of the CPC Central Committee and the State Council and achieved fresh progress in new urbanization. Improvements have been made in five aspects.

First, the level and quality of urbanization have steadily improved. By the end of 2021, China's urbanization rate of permanent residents reached 64.72%, and the rate of the registered population rose to 46.7%, a year-on-year increase of 0.83 and 1.3 percentage points, respectively. The gap between the two rates narrowed for the first time since the 13th Five-Year Plan period. Second, the provision of public services for migrant workers has steadily improved. We worked across the board to ensured that children living with their migrant worker parents in cities have access to compulsory education. As a result, 81.8% of such children studied at public schools of mandatory education, increasing 1.8 percentage points over the previous year. When considering those studying in private schools with their tuition fees covered by the government, the figure was 90.9%, a year-on-year increase of 5.1 percentage points. In addition, we organized extensive vocational skills training for rural migrant workers. Third, the carrying capacity of city clusters and metropolitan areas has steadily improved. Solid progress has been made in the coordinated development of the Beijing-Tianjin-Hebei region, the integrated development in the Yangtze River Delta, and the development of Guangdong-Hong Kong-Macao Greater Bay Area. The development of the Chengdu-Chongqing economic circle maintained powerful momentum. The development of city clusters in the middle reaches of the Yangtze River picked up the pace. Plans for developing metropolitan areas, including Nanjing, Fuzhou, and Chengdu, were issued. Fourth, the quality of urban development has steadily improved. We began the renovation of 56,000 old urban residential communities and accelerated the development of elderly and child care service systems. Fifth, the integrated development of urban and rural areas has steadily improved. As a result, the gap between urban and rural areas has been narrowed. The ratio of urban income to rural income per capita dropped to 2.5 from 2.56 in the previous year.

At present, China's urbanization is already in the middle and late stages of rapid development and entering a new stage of comprehensive quality improvement. Nevertheless, the driving force behind urbanization is still strong, promising substantial domestic demand and development momentum. We will advance a new people-centered urbanization strategy featuring high-quality development for some time to come. This year, we will steadily improve the quality of new urbanization and fully play its role in stimulating consumer spending and effective investment. We will focus on the following four aspects.

First, we will improve residency status for rural migrants who were granted permanent urban residency, which is the top priority of urbanization. We will continue deepening the reform of the household registration system, widening channels for rural migrants who have stable jobs and have lived in urban areas for a long time to gain urban residency, and at the same time protect their rights in rural areas. We will move faster to ensure that all urban residents access essential public services. With the new generation of migrant workers as the focus, we will ensure that children who moved from rural to urban areas along with their parents receive compulsory education. We will also improve employment service and vocational skills training. In 2022, we plan to offer at least 6 million subsidized training opportunities for migrant workers.

Second, we will promote the coordinated development of large, medium-sized, and small cities and towns. We will transform the development model of megacities. These cities should solve urban maladies; relieve their central areas of non-essential functions; appropriately control the scale, development intensity, and population density; promote multi-center, multi-level, and cluster development; and drive the growth of surrounding cities and counties to form a modern metropolitan area. We will advance the integrated development of urban clusters and metropolitan regions; accelerate the construction of highly connected rail transit in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area; promote the development of Chengdu-Chongqing economic circle; move faster to build modern metropolitan areas; and release development plans for Changsha-Zhuzhou-Xiangtan, Xi'an, and Chongqing metropolitan areas. We will promote county-level urbanization by supporting a group of counties with favorable conditions to speed up development and taking targeted measures to shore up weak links in counties. We will better meet the growing demand of rural residents to work and settle in counties. We will improve urbanization in border areas and promote characteristic towns' standardized and healthy development.

Third, we will improve livability and working conditions in cities. China's urban population has exceeded 900 million, and the number is expected to increase year by year. Therefore, we should make our cities more attractive and function better. We will create high-quality living spaces and provide more inclusive and convenient public services for urban residents. We will increase the supply of education, healthcare, childcare, elderly care, domestic, sports, and public culture services and create 15-minute community-life circles. We will promote urban renewal in an orderly manner, improve public facilities to cope with storms and droughts, initiate the upgrading of urban pipelines, including those for gas supply, improve living conditions for 8.4 million households living in old residential areas and increase urban safety and resilience. We will pay more attention to the urban ecological environment and support Chengdu in building into a demonstration park city that follows the new development philosophy. We will strengthen the conservation of historical and cultural heritage, put an end to large-scale demolition for grandiose projects, and prohibit large-scale migration and felling of old trees.

Fourth, we will drive the integrated development of urban and rural areas. Even when China basically achieves its urbanization goal, around 400 million people will still live in rural areas. We will take coordinated measures to promote urban and rural modernization, channel more urban public services to rural regions by taking counties as the basic units, promote the extension of urban utilities to rural areas according to local conditions, advance modernization of agriculture and rural areas, and provide a better living environment for rural residents. Thank you.

Shanghai Securities News:

China still faces some difficulties and challenges in developing the real economy. What measures will be taken to promote the high-quality development of real-economy sectors, including a new type of real economy-based enterprises? Thank you.

Lin Nianxiu:

The real economy is a cornerstone of our country and a wellspring of wealth. Attaching high importance to the real economy, General Secretary Xi Jinping gave important instructions on various occasions, pointing the way forward and providing guidelines to carry out related work.

Through years of effort, major advances have been made in China's real economy in terms of size, scale, structure, and quality, which is an outstanding achievement in the world's history. Our added value of the manufacturing sector has ranked top worldwide for 12 consecutive years. China has become the world's largest producer of over 220 categories of industrial products, and the only country in the world to have all the industrial categories listed in the United Nations' industrial classification. The influence of Chinese manufacturing on global industrial and supply chains has been increasing. All these are the biggest source of inspiration that will enable us to achieve the transformation from a major economy to an economic powerhouse.

However, compared with the world's industrial powerhouses, there are still some deficiencies and weak links in our work on developing the real economy, that have caused us to fall short of the requirements of high-quality development. To accelerate remedying these deficiencies, we will double our efforts and take coordinated action that covers all sectors and focus on two priorities to promote the high-quality development of the real economy.

The first priority is to continue boosting the industrial economy to increase the size of the real economy. The Central Economic Work Conference required us to seek steady progress in economic work this year. To stabilize the economy, I think we should first stabilize the industrial sector by maintaining its growth at a certain pace. At the end of last year, in accordance with the plans of the CPC Central Committee and the State Council, the NDRC worked together with relevant departments to issue an implementation plan to invigorate the industrial economy and promote high-quality industrial development. Recently, with the approval by the State Council, another document was issued on several policies for promoting steady growth of the industrial economy. In order to accelerate the implementation of relevant policies, the NDRC and the Ministry of Industry and Information Technology (MIIT) jointly held a national teleconference recently to make concrete plans to maintain the stable growth of the industrial economy. Next, relevant departments and local governments will continue efforts to implement the above two documents to ensure our policies bring benefits to enterprises as soon as possible and to promote the steady and healthy development of the industrial economy.

On the one hand, we will provide vital relief to businesses and reduce their burdens to help them survive and achieve better development. Enterprises are market entities. The stable performance of enterprises will help maintain market confidence with better economic prospects. To achieve this, we will truly ease the tax burden on businesses, strengthen financial support, and make an all-out effort to ensure supply and price stability of important raw materials and primary products. We will also stabilize the production and business operations of big enterprises, relieve the burden on small and medium enterprises, and increase the vitality of high-tech enterprises. By keeping market entities of all kinds fully motivated, we will boost market confidence as well as development expectations.

On the other hand, we will invigorate enterprises by solid investment and strengthen the basis for sustained growth. Investment in manufacturing plays an important role in stabilizing current economic growth, as well as affecting future industrial structure and development momentum. With manufacturing investment high on our agenda, we will work to facilitate transformation in traditional industries and foster new growth drivers. Upholding a principle of ensuring all projects follow the planning and all production factors follow the projects, we will speed up preliminary work for major projects listed in the outline of the 14th Five-Year Plan and other major strategic planning to help them begin construction as soon as possible. You may have noticed that recently there have been a lot of major projects starting construction all over the country. Meanwhile, we will make efforts on the planning, reserve, and construction of major projects in various fields to help them become higher-end, smarter, more eco-friendly, giving full play to the key role of investment.

The second priority is to advance industrial restructuring to strengthen the quality of the real economy. To effectively carry out this year's economic work, we should remain committed to the general principle of pursuing progress while ensuring stability. Stability is the basis of our pursuit to further progress. In regard to the real economy, specifically, we will attach more importance to increasing its quality while keeping a certain growth pace. We will continue to promote industrial restructuring and move faster up to the medium-high end of the global value chain to realize high-quality development of our economy.

First, we will work to transform and upgrade traditional industries. Making full use of a dynamic domestic market, we will focus on traditional industries with enormous upgrading and market potential and step up efforts on technological transformation and equipment upgrading. We will expand supply based on good quality to better satisfy the needs of investment and upgrading consumption and ensure smooth flow of production, sale, and reserve. We will also promote industries with extensive energy consumption to conserve energy and reduce carbon emissions through transformation and upgrading, strengthen breakthroughs in and deployment of green technologies, and improve the level of technique in steel, non-ferrous metals, construction materials, and petrochemical industries.

Second, we will work to increase the core competitiveness of the manufacturing sector. We will take concrete actions to increase core competitiveness of the manufacturing industry, encourage enterprises to put advanced and applicable technologies into practical use, enhance equipment upgrading and large-scale applications of new products, and accelerate breakthroughs in and industrial application of core technologies in key areas, including new-energy automobiles and high-end equipment to develop new advantages over manufacturing competition. We will also support enterprises to improve brand-building, achieving a growing popularity and influence of Chinese brands.

Third, we will work to boost the integrated development of manufacturing and service industries. We will continue trials to integrate the development of advanced manufacturing and modernized services, guide local governments and enterprises to explore new models and a new path, review typical experiences and successful models and apply them on a broad scale. We will also optimize the allocation of production factors and resources, and improve the quality and efficiency of supply to support the development of high-quality manufacturing.

Xing Huina:

Today's press conference is hereby concluded. Thanks to the three speakers as well as our media friends. Goodbye.

Translated and edited by Wang Yiming, Wang Qian, Zhou Jing, Lin Liyao, Liu Sitong, Zhu Bochen, Zhang Rui, Zhang Liying, Li Huiru, Li Xiao, Wang Yanfang, Chen Xia, He Shan, Zhang Lulu, Jay Birbeck, David Ball 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:

Xiang Dong, deputy director of the State Council Research Office

Liu Rihong, director general of the First Department of General Research of the State Council Research Office

Song Li, director general of the International Department of the State Council Research Office

Chairperson: 

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

Date: 

March 5, 2022

Shou Xiaoli:

Ladies and gentlemen, welcome to this briefing held by the State Council Information Office (SCIO). The fifth session of the 13th National People's Congress (NPC) opened this morning, and Premier Li Keqiang delivered the annual Report on the Work of the Government. To help the public better understand the report, we have invited Mr. Xiang Dong, deputy director of the State Council Research Office, to elaborate on the report and take your questions. We also have with us Mr. Liu Rihong, director general of the First Department of General Research of the State Council Research Office, and Mr. Song Li, director general of the International Department of the State Council Research Office.

First, we will give the floor to Mr. Xiang.

Xiang Dong:

Friends from the media, good afternoon.

This morning, Premier Li Keqiang delivered the Report on the Work of the Government to the fifth session of the 13th National People's Congress. Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implementing the guiding principles of the19th National Congress of the Communist Party of China (CPC), all plenary sessions of the 19th Party Central Committee and the Central Economic Work Conference last year, the report reviews the major achievements and major tasks in promoting China's economic and social development in the past year, and puts forward the main projected targets, policy orientation and major tasks for 2022.

I have been reading media reports on the premier's work report and the public's reaction to it. Many NPC deputies and members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) believe that the report is down to earth, displays foresight and strategic vision, and responds to the concerns of all sectors of society. Some say that they can feel much of the progress outlined in the report in their own lives. In the context of the ongoing pandemic and the complex and volatile global economic situation, the achievements in the past year have been particularly hard-won and made people proud. Some say that in the report, they found practical measures to address the key tasks of economic and social development and tackle the difficult issues that concern people, and that many packages of policies have also been introduced. They expressed stronger confidence in the future development of the country and greater hope for the new year. It can be said that the report fully implements the decisions and arrangements of the Party Central Committee and fully responds to social concerns. It is a pragmatic and inspiring report.

2022 is a very important year for the development of the Party and the country. The CPC will hold its 20th National Party Congress. Drafting the report was a key task, and the Party Central Committee and the State Council attached great importance to it. General Secretary Xi Jinping presided over meetings of the Standing Committee of the Political Bureau of the CPC Central Committee and the Political Bureau of the CPC Central Committee to discuss the drafting of the report, made important instructions on the drafting, and put forward specific requirements for further revisions and improvements, which provided fundamental guidelines for drafting and revising the report. The guiding principles for this year's work, policy orientation, and main goals and tasks proposed in the report were all drafted in accordance with the principles of the Central Economic Work Conference. Premier Li Keqiang presided over the drafting and revision of the report and chaired executive and plenary meetings of the State Council to discuss the draft. He also presided over several themed symposiums to directly hear opinions and suggestions from all parties. Li and other leading officials of the State Council also listened to opinions and suggestions through investigation and research in various places.

In accordance with the important instructions of General Secretary Xi Jinping on openly collecting suggestions and pooling wisdom, we have attached great importance to listening to and adopting the opinions of all sectors of society in drafting and revising the report. It can be said that the drafting is a process of gathering the wisdom and strength of the public, and also a process of meeting the expectations of society, and constantly refining and detailing the policy measures. In drafting the report, we solicited thousands of opinions and suggestions from multiple channels and took them under advisement:

First, Premier Li Keqiang presided over several symposiums to directly listen to opinions and suggestions. In late January, the premier presided over a symposium attended by experts and entrepreneurs, a symposium attended by representatives from the education, science and technology, culture, health, and sports sectors, a symposium attended by representatives from the central committees of non-Communist parties, the All-China Federation of Industry and Commerce, and non-party affiliated individuals. He conducted face-to-face exchanges and heard opinions and suggestions from people from all walks of life on a draft government work report.

Second, opinions from various regions and departments were extensively solicited. To collect opinions and suggestions, the draft report, discussed and revised at the plenary meeting of the State Council, was printed out and distributed in accordance with the procedures to all provinces, autonomous regions and municipalities, Party organizations, central government agencies, the military, people's organizations, some enterprises, and other entities. Thousands of opinions for revisions were collected, of which more than 300 important opinions were taken into consideration.

Third, media platforms were used to solicit opinions. For example, a campaign called "Share Your Ideas with the Premier" was launched for the eighth consecutive year to solicit suggestions from the public. The campaign was launched by www.gov.cn in cooperation with 22 online platforms, including people.com.cn and xinhuanet.com, as well as the websites of various provinces, autonomous regions and municipalities. People were invited to offer their opinions on 21 topics such as "employment and entrepreneurship," "enterprises and self-employed businesses" and "technological innovation." Nearly 1 million comments from netizens were received. The top five topics that received the largest amount of advice were: public affairs, social security and assistance, education, macroeconomics, and housing. The www.gov.cn carefully sorted through and selected more than 1,100 typical suggestions, and the report has taken some key advice. 

In drafting the report, we have collected a large number of explicit comments and suggestions on almost every section and paragraph of the report. Regarding these opinions and suggestions, whether they came from local governments, departments, enterprises or ordinary citizens, the premier asked us to carefully sort through and summarize them and study them one by one, in a bid to better respond to the public's demands and gather wisdom from the whole of society.

This year's government work report is divided into three parts. The first part is a review and summary of last year's work and achievements. The second part expounds on the overall requirements, main projected targets and policy orientation for this year's economic and social development. The third part puts forward nine major tasks for achieving economic and social development in 2022. At the same time, it also touches on the topic of government building, the affairs of ethnic groups, religions, overseas Chinese, affairs related to Hong Kong, Macao and Taiwan, and national defense as well as diplomacy.

Next, I and my colleagues, Liu Rihong and Song Li, would like to discuss the drafting of the report with you.

Shou Xiaoli:

Thank you, Mr. Xiang. The floor is now open for questions. Please identify your news outlet before raising your question.

CCTV:

This year's government work report pointed out in its beginning part that "last year was a milestone in the history of the Party and our country." The report also said, "Looking back on the past year, we can see that our achievements did not come easily." Could you specify what "a milestone" and "not easily" mean in this context? Thank you.

Xiang Dong:

Thanks for your question. The report pointed out that the year 2021 was a milestone in the history of the Party and the country. The CPC Central Committee with Comrade Xi Jinping at its core united and led the entire Party and the Chinese people of all ethnic groups to effectively manage many difficult and urgent matters and successfully hold many momentous and joyous events. We solemnly celebrated the centenary of the founding of the CPC, successfully convened the sixth plenary session of the 19th CPC Central Committee, and adopted the Party's third resolution on historical issues. We won the battle against poverty as scheduled, realized the first centenary goal of building our country into a moderately prosperous society in all respects as scheduled, and embarked on the journey of achieving the second centenary goal of building our country into a modern socialist country in an all-round way.

In the government work report, Premier Li Keqiang made a comprehensive summary of the achievements and work in economic and social development over the past year. I was impressed mainly by the following aspects. 

In the aspect of economic recovery and development, China's GDP increased by 8.1%, exceeding 110 trillion yuan. That was about US$17.7 trillion as calculated at the yearly average exchange rate, ranking second globally and was estimated to account for more than 18% of the world economy. The per capita GDP exceeded US$12,000 and reached US$12,500, which was expected to surpass the global per capita level. The aim of maintaining stable growth is primarily to secure employment. Last year, 12.69 million new urban jobs were added, and the average surveyed urban unemployment rate was 5.1%. Consumer prices rose by 0.9%. It can be said that China's economy has achieved a rapid growth with a relatively low inflation rate and a relatively high employment rate, which is an optimized combination.

In terms of scientific and technological innovation, the Shenzhou-12 and Shenzhou-13 manned spaceships were launched in succession, the Chinese people for the first time entered their own space station, and China's Mars probe Tianwen-1 successfully landed on Mars. China's strategic capacity in science and technology has become stronger, and a number of national laboratories have been established. China's manufacturing industry has seen continued development, and the resilience of industrial and supply chains has been improved.

As for reform and opening-up, supply-side structural reforms were deeply advanced, and reforms in key areas were accelerated. Progress was made in reforms to streamline administration and delegate power, improve regulation, and upgrade services. A market-oriented, law-based, and internationalized business environment was formed at a faster speed. By the end of 2021, China had more than 150 million registered market entities, and the number has now reached 154 million, among which 100 million are self-employed businesses and households. Foreign trade and foreign investment also witnessed rapid growth, with both the volume of trade in goods and foreign exchange reserves ranking first globally. In 2021, China's economic growth was estimated to contribute around 25% to the world economic growth, continuing to be an important force leading the recovery of the world economy.

In ensuring and improving people's living standards, the growth of residents' income has basically kept pace with the economic growth, the income gap between urban and rural residents has continued to narrow, and the achievements made in poverty eradication have been consolidated and expanded. Basic old-age insurance, basic medical care, and social assistance have been better ensured, and the standards for the basic pension and preferential treatment of the retired people have continued to be improved. New steps have also been taken in the reform and development of education.

Regarding the COVID-19 prevention and control, we have made continued efforts in our long-term fight against the epidemic. By the end of last year, more than 85% of the total population had been fully vaccinated. By the end of this February, the percentage has risen to 87%. We have responded to cluster cases in some areas in a timely and effective manner to safeguard our people's lives and health.

Meanwhile, we have also made progress in coordinated development between regions and between urban and rural areas, in ecological and environmental protection, and in social governance, among other fields.

The challenge was unknown until we ourselves went through the process. Looking back on the past year, China faced complicated and grave situations and a number of risks and challenges rarely seen in many years. Reeling from the severe impact of epidemic outbreaks, China's economy was still in the process of recovery which is not solidly based. In addition, as the domestic and overseas situations evolved, a series of new questions and challenges arose beyond expectations. Challenges came one after another: industrial and supply chain circulation was not smooth, commodity prices rose sharply, sporadic COVID-19 cases broke out in many places, severe floods brought damages to some areas, and electricity and coal were once in short supply. These challenges made it increasingly difficult for us to maintain economic stability and make decisions about macro-control measures. Many of you have been through these together with us. I believe we all feel the same in many aspects. Against such a background, it was not easy for China to attain these development achievements. All these achievements were made thanks to the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and the concerted efforts of the Party and the Chinese people of all ethnic groups. All of these have fully proved that policies and plans made by the CPC Central Committee with Comrade Xi Jinping at its core are correct and fully demonstrated that China's economy has ample resilience, enormous potential, and risk resistance capacity. 

Thank you.

Beijing Youth Daily:

According to the government work report, the task of stabilizing employment is more formidable this year. At the same time, China targets a surveyed urban unemployment rate of no more than 5.5% for 2022, which is even lower than the rate of around 5.5% last year. How was this target set? What are our considerations? Will it be completed this year? In addition, I noticed that it is said that there are 200 million workers in flexible employment in China. What's your take on that? Thanks.

Xiang Dong:

Employment is a significant issue concerning people's livelihood, especially for a large country like us with a population of more than 1.4 billion. Last year, stabilizing employment was much affected as enterprise, especially micro, small and medium enterprises (MSMEs), ran into difficulties due to multiple problems such as high commodity prices, the COVID-19 pandemic and other natural disasters. Nevertheless, we kept macro policy targeted, and strengthened efforts to keep the operations of market entities stable, maintain stable employment, and ensure people's wellbeing. Departments at local levels also took measures actively to support people to start business or secure employment through multiple channels. With the joint efforts, 12.69 million urban jobs were added, and the average surveyed unemployment rate stood at 5.1%. We accomplished the target for the year, which was a hard-won achievement. 

This year, the task of stabilizing employment is more formidable. There will be nearly 16 million new entrants into the workforce, including a record high of 10.76 million college graduates. On the other hand, MSMEs and self-employed individuals, which are the sources of employment for several hundred million people, still face multiple difficulties. The government work report set the target of maintaining a surveyed urban unemployment rate of no more than 5.5%, lower than the target of around 5.5% last year. This is because employment is key to people's wellbeing and social stability, and following the recovery and development of the economy, we must further prioritize employment-first efforts and ensure all parties fulfill their duties. Therefore, the government work report said that the employment-first policy should be pursued with intensified efforts to deliver the desired outcomes. And we will take complete consideration of the need to stabilize employment when formulating policies concerning tax and fee reductions, support of industries facing particular difficulties, and key groups, among others. With the intensified measures and policies, we are confident of achieving the target for the year. Of course, the target is for the whole year, and that of some individual months may be relatively high. We will step up our efforts to keep the unemployment rate as low as possible.

You mentioned flexible employment. Flexible employment is an important way to boost employment. As the mindset of workers on career choice has changed and enterprises have varied their ways of hiring people, especially with the rapid development of new industries and new forms of business, there is an increasing number of workers in flexible employment, which is now about 200 million. Flexible employment creates jobs for people, especially those in difficulty. At the same time, it demands more from the employment service and social security. Flexible employment is particularly important in ensuring the well-being of people during the COVID-19 pandemic. Therefore, we will improve our support measures for flexible employment and optimize its labor and social security policies to promote its healthy development, and encourage companies to create more jobs with stable income and sufficient guarantees and in different types as they recover and develop.

CNBC:

I have several questions. My first question is about the consumption sector. According to the government work report, there will be different ways to promote consumption. What are the considerations behind that? And how will these measures be carried out? The government work report also mentioned risks from overseas. So what are the significant aspects and considerations for supporting foreign investment? Thanks. 

Xiang Dong:

I will first answer your questions about consumption.

Last year, China's consumption sector recovered, with the retail sales of consumer goods and per capita consumption expenditure growing by 12.5% and 12.6%, respectively, both higher than 2020. Final consumption expenditure drove China's GDP growth by 5.3 percentage points during the past year. It contributed 65.4% of China's economic growth, playing a primary role among the three major growth drives. 

At the same time, we should recognize that last year's consumption sector recovered from the low base in 2020. If we look at the average growth rate over the past two years, the growth rate of the consumption sector is still lower than the pre-pandemic level. Especially affected by the ongoing COVID-19 pandemic, consumption of consumer services remains in the doldrums, with the growth of revenues from the tourism and accommodation sector and box office revenue still lower than in pre-pandemic 2019.

China is a large consumption market with enormous potential. For example, the number of motor vehicles per thousand people is less than half of that in Japan and South Korea, and a quarter in the United States. Another example is that the per capita consumer spending on services only accounts for 44% of the total consumption expenditure, which is lower than that of other countries at the same development stage. Also, China's consumption sector upgrades rapidly in recent years, and people's demand for high-end consumption is substantial. However, the potential is not fully released due to the supply shortage.

This year's government work report said that China would promote sustained consumption recovery. And there are concrete measures to be put into place, which are as follows: First, we will boost the recovery in consumption of consumer services. This is the biggest weakness we need to strengthen to recover the consumption sector. And consumption of consumer services has the most significant potential. Second, we will keep major consumption stable. Last year, the sales of new energy vehicles rocketed to 3.82 million, up by 160%. This year, we will continue to support consumer spending on new energy vehicles. At the same time, we will promote spending on green and smart home appliances in rural areas as well as the replacement of old home appliances. Third, we will promote consumer spending at the community, township, and county levels. Efforts will include strengthening the building of community-level consumer services facilities in urban areas and county-level commercial systems and developing e-commerce and express delivery services in rural areas to promote and upgrade consumption by providing convenience and accessibility. In addition, we need to focus on improving the quality of products and services, to meet people's needs better. 

Your question about the consumption sector is, in fact, a question about expanding domestic demand. Growing domestic demand includes efforts to promote the consumption sector and investment. The government work report also mentioned effective investment. China has enormous potential and space to expand effective investment. Investment from the central government budget will reach 640 billion yuan this year. Special-purpose bonds for local governments will total 3.65 trillion yuan. There is still carry-over from last year. The government spending is expanding compared to the previous year. We will focus on supporting the major projects in the 14th Five-Year Plan, infrastructure projects related to urban utility networks and others, and strengthening weaknesses in ensuring people's well-being. Private investment accounts for a large proportion of China's investment. And we will use government investment funds rationally and work to play its role in leading and driving effective investment. 

Your question about foreign investment will go to Mr. Liu.

Liu Rihong:

Thank you for your question. Opening up is China's basic national policy, and the use of foreign capital makes a major part of China's opening up. You probably have seen the data released by the relevant authorities regarding China's utilization of foreign investment last year, which showed that its actual use of foreign capital exceeded 1 trillion yuan, or more than $170 billion, for the first time. Why has China been able to maintain such a growth rate in its use of foreign investment against the backdrop of the pandemic? From my point of view, the reasons are as follows:

First, China's effective pandemic prevention and control have created a favorable environment for enterprises to ensure normal production and operation. It's fair to say that Chinese economy has become a "stabilizer" and "safe haven" for the global economy over the past two years. 

Second, China has complete industrial and supply chains, and the Chinese people are hard-working and talented. Therefore, foreign enterprises have become optimistic about the Chinese market, and are willing to achieve shared success and common development with such a huge market.

Regarding the policies on foreign investment in this year's government work report, I'd like to give you a brief introduction in the following aspects: First, it will ensure the implementation of national treatment for foreign-invested enterprises. In recent years, China has been downsizing its negative lists of market access for foreign investment, and the access to Chinese market has been improved. For example, items on the national negative list and the negative list for pilot free trade zones have been cut by nine and 10, respectively, over the past two years after the breakout of the pandemic. Such reduction is impressive. At present, foreign ownership caps on automobile manufacturing companies have been removed, and restrictions on foreign investment in the manufacturing sector in pilot free trade zones have been removed, achieving remarkable progress in opening up. After the negative lists become shorter, we will work to ensure that foreign investment can access sectors beyond the negative lists in a law-based and equal manner. Therefore, this year's report pointed out that we will fully observe the negative list for foreign investment and ensure national treatment for all foreign-invested enterprises, so as to ensure fair competition among all types of businesses. Second, besides the negative lists, we have a catalog of industries for foreign investment, which from my point of view, is a positive list. After years of practice, our negative lists are becoming shorter and shorter, while the positive lists are growing longer. What is a positive list? Foreign enterprises will obtain some preferential treatment in terms of tax and land use if they invest in the sectors or regions on the list. This was mentioned in this year's report, as it pointed out that we will encourage foreign-invested enterprises to move into a broader range of sectors. Third, we will build and improve the platforms for China's opening up. What are these platforms? They are pilot free trade zones, the Hainan Free Trade Port, economic development zones and integrated bonded areas. In addition, more comprehensive trials on the opening of the service sector are expected to be launched this year. China is a large country, so it has been an important experience for us to launch pilots first while pursuing opening up. Those aforementioned platforms have been launched to implement pilot standards and rules for the opening up. Over the past years, a lot of achievements have been made and enabled us to establish relevant systems, and thereby have been promoted nationwide.

Thanks to these policies, I believe, just as the report says: "The vast, open Chinese market is sure to provide even greater business opportunities for foreign enterprises in China."

Thank you.

CNR：

The report pointed out that we will issue VAT and VAT credit refunds on a bigger scale this year. Could you please brief us on the background and details of the policy adoption? Why now instead of sometime earlier? Moreover, why do the VAT credit refunds not cover all the industries? What is the significance of the policy for the improvement of the VAT system in the future? Thank you. 

Xiang Dong:

Thank you. These is a good question. I'd like to invite Mr. Song to answer it. 

Song Li:

VAT credit refunding is an important tax-and-fee support policy adopted this year. Under the current VAT system, an enterprise will have VAT credits if its output VAT is less than the input VAT during a tax period. We have deepened reform since April 2019, establishing and improving the end-of-tax-period VAT credit refund system so as to refund part of the VAT credits.

Currently, China's VAT credit refunds mainly focus on the newly added part generated after April 2019. Among them, we will refund all the newly added VAT credits to advanced manufacturing enterprises, while for other industries, we will refund 60% of the newly added VAT credits that meet the standards.

The report pointed out that we will issue VAT credit refunds on a large scale this year, including the newly added and outstanding ones so as to significantly increase the amount of tax refunds. Given the downward economic pressure, the policy will help enterprises resume their development. Major policies lie in the following two aspects:  

First, we will give priority to micro and small enterprises, refunding outstanding VAT credits to them in one lump sum by the end of June, while also fully refunding newly added credits. In order to ensure that the policy takes full effect, the central government will provide greater fiscal support for local governments to ease their burden. We will ensure that the tax credits are fully refunded in time. 

Second, with a focus on supporting manufacturing, we will work to fully resolve problems in refunding VAT credits in manufacturing, research and technical services, environmental protection, electricity and gas, and transportation industries. 

After the launch of VAT credit refunds on a large scale this year, we will continue to refund the outstanding VAT credits and refund the newly added credits in time, which is of great significance to improving the VAT system.

Thank you.

21st Century Business Herald:

The COVID-19 pandemic has been going on for more than two years now. We have seen that some countries have begun to lift the lockdowns amid the still raging pandemic and gradually relax control measures. Some places have been fully open without any restrictions. So I want to know, what will China's pandemic prevention and control strategies and measures be in the next step? Thank you.

Xiang Dong:

Thank you for your question. I have noticed that people have paid great attention to this issue in several recent press conferences. In the face of the pandemic of the century, the Chinese government insists on putting people first and putting life first, insists on preventing imports from abroad and preventing rebounds from within, insists on scientific precision and dynamic zero-case policies, and quickly handled and resolved many clustered cases in local areas. The Chinese government has maintained its dominant position in global pandemic prevention and control, creating conditions for economic and social development. At the same time, it should be noted that there are still many uncertainties and variables in the current global pandemic development trend, which brings significant challenges to China's prevention and control. Next, we will continue to adhere to external defense against imported cases and internal defense against rebounds, scientifically and accurately handle clustered cases, protect people's lives and health, and minimize the impact on people's everyday work and life. We will focus our work on the following four areas:

The first is to strictly prevent the import of the pandemic. More than 40 sporadic cases and clustered outbreaks occurred in China in the past two years. After gene sequencing analysis and epidemiological investigation, they were all caused by overseas imports. Therefore, the prevention and control of port cities should be the top priority, and the common prevention and control efforts on "people, objects, and environment" should be strengthened. We must guard the national gate of pandemic prevention and control and resolutely prevent large-scale import and spread.

The second is the precise implementation of prevention and control measures. In response to the problems of prevention and control in some localities, such as one-policy-fits-all and taking excessive policy steps, all localities are required to establish a special working mechanism for reporting, verifying, and correcting relevant problems. In addition, all localities are required to strictly implement the "three don'ts." Don't break through the existing regulations on pandemic prevention and control to lock down cities and districts; don't interrupt public transportation unnecessarily or without approval; don't arbitrarily increase the service industry's pandemic prevention and control measures. We must firmly prevent the two trends of "relaxing prevention and control" and "excessive prevention and control."

The third is to continue to promote the vaccination work. As I mentioned just now, as of the end of last year, China's full-course vaccination rate exceeded 85%, and by the end of February this year, it had exceeded 87%. Therefore, it is necessary to promote sequential immunization and booster vaccination to further improve the effect of immunization.

The fourth is to strengthen scientific research breakthroughs on pandemic prevention and control. We will actively promote the research and prevention of COVID-19 variants, increase the development of vaccine adaptability and specific therapeutic drugs, and strive to find a sharp weapon to control the pandemic as soon as possible.

Thank you.

The Poster News APP:

The Report on the Work of the Government stated that the main projected target for this year's development is a GDP growth of around 5.5%. Considering the current complex and severe domestic and overseas economic environment, are there any special considerations for such a projection? Thank you.

Xiang Dong:

Thank you for your question. After Premier Li Keqiang finished delivering the report, everyone has been concerned about the projected growth rate this year. China's economy's two-year average growth rate has dropped from the 6% growth rate in 2019, mainly due to factors such as the continuation of the pandemic. From a global perspective, major economies' two-year average economic growth rate is generally slower than that before the pandemic, and the rate of slowdown is greater than that of China.

Setting GDP growth target at around 5.5% this year, first of all, has considered the need to maintain stable employment, meet basic living needs, and guard against risks. Economic stability is the foundation. Employment and income will be difficult to stabilize if the economy is unstable, and some hidden risks will be revealed. Achieving a growth rate of about 5.5% this year, we will have the foundation to expand employment and increase income. The economy's operation will be able to be maintained in a reasonable range.

Second, it is also considered in keeping with the average growth rates of the last two years and the goals of the 14th Five-Year Plan. As you just said, China's economy has grown by an average of 5.1% in the past two years. In 2019, before the pandemic, China's economic growth target was projected to be 6%-6.5%, and the actual growth rate for that year was 6.1%. Although the 14th Five-Year Plan does not set specific economic growth expectations, it requires keeping within a reasonable range. Taking these factors into consideration, it is relatively scientific and reasonable to set the projected economic growth target for this year at around 5.5%, which is in line with China's potential growth level at the current stage and is conducive to guiding expectations, boosting confidence, and building consensus on development.

Third, as the report stated, it represents a medium-high growth rate given our large economic aggregate and demonstrates our ability to move proactively. For example, last year, China's GDP reached 114.4 trillion yuan. On this basis, when it achieves an increase of 5.5%, which is equivalent to an increase of 7.4% five years ago and an increase of 10.5% ten years ago; the corresponding economic increment exceeds 9 trillion yuan, which is close to the annual economic aggregate of the 11th and 12th largest economies in the world. But achieving this goal is not easy and will require arduous efforts. Therefore, to achieve the projected economic growth target of "about 5.5%," we should focus on the following aspects this year:

The first is to insist on ensuring stability a top priority and seeking progress while maintaining stability. We must put stable growth in a more prominent position. All localities and government bodies should earnestly shoulder the responsibility of stabilizing the macroeconomy and actively introduce policies conducive to economic stability. Of course, stable growth is not just about speed ignoring quality. It is about adhering to the new concept for development and promoting the steady improvement in quality and rational growth of the quantity.

The second is to intensify the implementation of macro policies. This year's fiscal, monetary, employment priority, and other policies are sizable. Fiscal expenditure exceeds 26 trillion yuan, and tax rebates and tax reductions are around 2.5 trillion yuan. In addition, monetary policy should strengthen support for the real economy, which can provide strong support for the smooth operation of the economy.

The third is to deepen reform, expand opening-up, and promote innovation. We will firmly implement the strategy of expanding domestic demand and strive to stimulate market vitality and enhance the endogenous driving force for development.

And there is an important premise here: it is still necessary to ensure pandemic prevention and control. We must coordinate pandemic prevention and control with economic and social development, ensure normalized pandemic prevention and control, protect people's lives and health, minimize the impact on production and life, and create conditions for maintaining normal production and living order. This is an essential prerequisite for consolidating economic recovery and development.

Overall, the economic fundamentals sustain long-term growth. The total number of market entities in China has exceeded 150 million and continues to grow quickly. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we will work together, keep going and make pragmatic and persistent efforts to accomplish the targets and tasks for economic and social development this year, with the result of the hard work and vision of more than 1.4 billion Chinese people, a variety of instruments and space for macro policies and a wealth of invaluable experience on responding to significant challenges and withstanding major risks.

Kyodo News Service: 

I have three questions. First, have you considered the international volatility raised by the Ukraine crisis while drafting the government work report of this year? Second, the deficit-to-GDP ratio this year is projected at 2.8%. What's the consideration behind this? Third, this year's government work report has not mentioned the dynamic zero-COVID 19 policy. Does it mean that there are possibilities for the country to adjust its virus control strategy? Thank you.

Xiang Dong:

I want to answer your first question briefly. We have taken various considerations into account while drafting this year's report.

Second, I would like to offer some details about your question concerning the fiscal deficit.

The work report says the proactive fiscal policy will be more effective, targeted, and sustainable. The deficit-to-GDP ratio has been cut appropriately in the recent two years. We mainly take the following factors into account.

First, China's proactive fiscal policies will remain unchanged though the deficit-to-GDP ratio was lowered moderately. According to the work report, it is projected that fiscal revenue will continue to grow in 2022. In addition, we also have available to us the surplus profits of state-owned financial institutions and state monopoly business operations from recent years turned over in accordance with the law and funds transferred from the Central Budget Stabilization Fund. This will make it possible for government to increase expenditures by more than two trillion yuan over last year, putting significantly greater fiscal resources at our disposal. We will implement a new package of tax-and-fee policies to support enterprises, with tax refunds and cuts totaling about 2.5 trillion yuan. Furthermore, this year, special-purpose bonds for local governments will total 3.65 trillion yuan, and a portion of special bonds carried over from last year will be available for further use. In addition, investment from the central government budget will reach 640 billion yuan, an increase of 30 billion yuan over last year. As a result, we will see that the proactive fiscal policy is more effective.

Second, it is conducive to boosting fiscal sustainability. The government set the deficit-to-GDP ratio in 2020 at more than 3.6% to address the COVID-19 pandemic, which was an extraordinary measure for an unusual time. As economic performance recovers stably, we moderately cut the deficit-to-GDP ratio in time, which is constructive to enhancing fiscal sustainability. We have also considered the need to leave policy space to address risks that could arise in the future.

Third, in cutting the deficit-to-GDP ratio to within 3%, we have signaled that China's economy and finance perform prudently, which can boost market confidence.

As for your third question, please refer to my answer to a similar question just now. Thank you.

The Paper:

In last year's government work report, the CPI was projected to increase by around 3%. However, the CPI rose by 0.9% in 2021. What factors slowed down the CPI increases of last year? Moreover, we noticed that the CPI is set to increase by 3% in this year's report. Will China continue to maintain a low growth this year? Will last year's "low base" impact achieving this year's expected goals? Thank you.

Xiang Dong:

Over the course of last year, the CPI rose moderately by 0.9% on average, creating a favorable environment for economic recovery and improvement of people's lives. Against the backdrop of sharply increasing international commodity prices and increasing global inflationary pressure, China's CPI has remained stable, mainly due to abundant market supply and a bumper harvest in agriculture. In particular, pork prices fall because the pig production has remained favorable. In addition, the CPC Central Committee and the State Council have strengthened market regulation, stepped up efforts to ensure the supply of energy and raw materials, and keep their prices stable, thus creating conditions for price stability.

At present, China's industrial and agricultural production situation is pretty good. The number of hogs and "breeding sows remains high. The supply of major industrial and agricultural products is guaranteed, all of which lays a foundation to keep CPI stable this year. On the other hand, energy prices on the international market have risen considerably in recent months, which puts upward pressure on domestic prices. Due to climate change and other factors, we can't rule out that some agricultural products like vegetables will rise for the current period on the Chinese market. In addition, consumer prices of last year were exerting a 0.9 percentage point of carryover effect on prices this year. In comparison, the carryover effect of prices in 2020 was only a minus 0.1 percentage point. It is predicted that a CPI increase rate year-on-year will expand in 2022. However, it will still rise mildly. The CPI is projected to rise by around 3% this year. We have taken complete account of various potential factors affecting prices and leaving some leeway. This is also in compliance with last year's projected target and will help stabilize market expectations.

Bloomberg:

According to the work report, this year's fiscal plan focuses on using funds from state-owned enterprises and local government debt to boost consumption and spending. However, the expenditure on infrastructure was relative slow last year because of insufficient good infrastructure projects. How shall we ensure the effective spending of these funds and ensure the problem of last year be well addressed? And how can you keep these policies and measures consistent, and whether it can promote investment in fixed assets?

Xiang Dong:

Thank you. The questions you raised are mainly related to finance. Regarding the government's expenditure mentioned in the work report, there are two major expenditures this year: tax reductions and refunds. I covered the former one, and I'd like to invite Mr. Liu to elaborate briefly on the latter.

Liu Rihong:

As Mr. Xiang said, my colleague covered some of your questions. I would like to add some more details for your reference. 

In terms of government expenditure, we will first increase overall spending. According to the report, government expenditure in 2022 is budgeted to increase by more than two trillion yuan over the previous year. You may be curious about the reasons for such an increase. One of the significant reasons is to facilitate tax refunds and cuts. Our practices in recent years prove that tax and fee cuts are crucial measures to innovate macro adjustment and the fairest, most inclusive, and most effective method to support market entities. Statistics show that since the 13th Five-Year Plan was launched, the volume of newly-issued tax and fee cuts has totaled 8.8 trillion yuan, effectively reducing the burden of enterprises. Although policies on tax and fee cuts continue to take effect, China's public finance has achieved sustainable and stable operation due to the growing vitality of market entities and the development of new tax-related market entities. From 2013 to 2021, new tax-related market entities have paid 4.76 trillion yuan in tax. This demonstrates the policy effect of tax and fee cuts.

One of the major reasons for expanding government expenditure this year is to increase transfer payments to local governments, help carry out tax and fee cuts, and ensure that policies concerning 2.5 trillion yuan of tax refunds and cuts can be well implemented.

Another reason is to help expand effective investment. In 2022, 3.65 trillion yuan of special bonds will be issued, similar to the previous year. In the meantime, 640 billion yuan will be allocated for investment in the central government budget, 30 billion yuan more than the previous year. Therefore, there is substantial growing space for China's effective investment. As for the investment in infrastructure you mentioned, indeed, the growth rate in this regard has been comparatively low in recent years, and we will ramp up investment this year. However, our efforts to increase investment are not made in an extensive manner as we did in the past. What we expand nowadays is an effective investment, applied to projects urgently needed for economic growth and people's livelihoods. For example, a bond issued this year will focus on supporting major engineering projects of the 14th Five-Year Plan and those concerning the weakness of society and people's livelihood. With the implementation of the funds, effective investment will be continuously leveraged, which will effectively support the stable operation of the Chinese economy.

Thank you.

Shou Xiaoli:

Due to time constraints, we are open to two more questions.

Economic Daily:

Currently, China's economy faces new downward pressure, and the country's GDP in the fourth quarter of 2021 only expanded 4% year-on-year. We noted that the government work report proposed many policies and measures in this regard. What are the considerations behind this? Thank you.

Xiang Dong:

China's economy in 2022 faces the triple pressures of shrinking demand, disrupted supply, and weakening expectations, and we must overcome these difficulties. Building on an in-depth analysis of situations both at home and abroad, the government work report has made comprehensive arrangements for the tasks of the government in 2022, proposing a series of policies and measures which aim to continuously maintain sound economic and social development. Regarding your question, I personally think that we can analyze the measures in the following aspects.

First, we need to follow the general principle of prioritizing stability and seeking progress while ensuring stability. The term "stability" is one of the keywords of this year's report and has been mentioned 76 times. The report clearly stipulates that the work in 2022 should follow the aforementioned general principle and attach greater importance to stabilizing growth. All regions and sectors need to take responsibility for stabilizing the economy and proactively introducing policies that help ensure economic stability.

Second, we need to stick to the main policy direction, ensuring stability in the macroeconomy. The report proposed that the efficiency of proactive fiscal policies should be improved and that the fiscal spending will increase by over 2 trillion yuan over the previous year. The central government transfer payments to local governments will reach nearly 9.8 trillion yuan, 1.5 trillion yuan more than the previous year, up 18%, the most significant increase in recent years. A total of 3.65 trillion yuan of local government special bonds will be issued, and 640 billion yuan will be earmarked for investment in the central government budget. China will further strive to implement a prudent monetary policy to expand the scale of newly-issued loans. The policy that prioritizes employment will be further strengthened. China will spare no effort to ensure food and energy security. The report stressed that more efforts should be made to stabilize the production and ensure the supply of grain and other vital agricultural products, keep crop acreage stable and boost the yield of soybeans and other oil crops, in a bid to ensure the food supply for 1.4 billion Chinese people.

Third, we need to properly implement policies to ensure the stable growth of market entities and employment. The report put forward a package of highly effective and well-targeted, hardcore measures. For example, China implemented a new set of combined taxation policies. The total volume of tax refunds and cuts is expected to total around 2.5 trillion yuan, including 1.5 trillion yuan of value-added tax credit refunds. For businesses that didn't lay off employees or only had a few layoffs, refunding unemployment insurance will be continuously implemented. The ratio of funds refunded to micro, small and medium-sized enterprises will significantly improve. More support will be given to catering, hospitality, retail sales, tourism, passenger transportation, and other industries and businesses facing difficulties.

Fourth, we will work to complete the new tasks of expanding domestic demand and improving the quality of economic development. For example, the report rolled out measures of raising the extra tax deduction coverage for small and medium-sized sci-tech enterprises from 75% to 100%. It also calls for granting tax breaks to enterprises that invest in basic research and improving policies on accelerated depreciation of equipment and tools and preferential corporate income tax for new and high-tech enterprises. Furthermore, to speed up the recovery of consumption and investment, the report introduced effective measures of supporting the purchase of new-energy vehicles, accelerating the upgrading of urban pipelines, including those for gas supply, and keeping energy consumption of major national projects under separate management. Meanwhile, according to the report, the government will fully implement all major regional development strategies and coordinate regional development, improve the quality of new urbanization, improve the environment and promote green and low-carbon development.

Fifth, we will implement new initiatives to deepen reform and expand opening-up. The report introduced a series of new measures to build a high-standard market system, advance reforms of state-owned enterprises and the fiscal, taxation, and financial reforms, and deepen reforms to streamline administration and delegate power, improve regulation, and upgrade services. This year, we will face tremendous pressure to ensure stable foreign trade and foreign investment. Despite all the changes in the international landscape, we will open wider to the world and take multiple measures to stabilize the overall performance of foreign trade and foreign investment.

Sixth, we will take new measures to ensure and improve people's wellbeing. Policies and measures in this regard have been a highlight of each year's government work report. This year's report has also rolled out a raft of pragmatic measures. For example, the government will allocate educational resources according to the size of the residential population, and see that school-age children can enroll in nearby schools; steadily enhance services for the prevention and treatment of illnesses including cardiovascular and cerebrovascular diseases and cancer, and better ensure the supply of medicines for rare diseases; appropriately raise the basic pensions and pension standard for urban and rural residents, which will benefit nearly 300 million people; and make care expenses for children under three part of the special additional deductions for individual income tax to ease the burden of giving birth and raising a family.

Seventh, we will meet the new requirements for the improvement of government. Facing new developments and tasks, the government must adopt a new approach. The report requires that governments at all levels and all government employee perform their duties, shoulder their responsibilities, make concerted efforts to promote development and ensure public wellbeing and accomplish new achievements.

Shou Xiaoli:

The last question, please.

Red Star News:

Major economies globally, including the U.S. the EU, have entered the interest rate rise cycle. Will this affect China's monetary policy? The report says a considerable drop will be seen in the overall financing costs of businesses. What measures will be taken to this end? Thank you.

Xiang Dong:

You have paid attention to the monetary policy. Therefore, Mr. Song will answer the questions.

Song Li:

Historically, most policy adjustments in developed economies have produced spillover effects, affecting the global economy and increasing economic and financial volatility in developing countries, especially emerging market economies. Therefore, China needs to pay close attention to these adjustments as an open economy. However, compared with the last interest rate rise cycle of developed economies, China's ability to deal with external shocks has been significantly improved:

First, China's economy has grown in size, with stronger resilience, broad prospects, and plenty of room to maneuver.

Second, there is much room for policy adjustment. We have been firm in choosing not to adopt a deluge of strong stimulus policies. With ample monetary policy instruments and policy space, we have a strong ability to deal with external shocks effectively.

Third, the RMB exchange rate remains generally stable and floats more freely. So, it can better function as an automatic stabilizer.

Fourth, China's financial system has become more prudent; mutual openness in the financial sector has been enhanced; two-way cross-border capital flows have become more active; RMB assets have become more attractive, and the vitality and resilience of the capital market are increasing.

In the next stage, we will continue implementing a prudent monetary policy and maintaining reasonably adequate liquidity. We will give full play to the role of monetary policy in terms of both amount and structure to provide stronger support for the real economy. Regarding the amount, we will increase new loans, ensure the increases in money supply and aggregate financing are generally in step with economic growth in nominal terms, and further improve the transmission mechanism of monetary policy. Regarding the structure, we will channel more funds to key areas and weak links and extend the coverage of inclusive financing. In addition, we will encourage financial institutions to lower real loan interest rates and cut fees, increase inclusive loans to micro and small businesses, including credit loan, make it easier for those businesses to access financing, and reduce overall financing costs to help them solve financing difficulties.

Thank you.

Shou Xiaoli:

Thank you, Mr. Xiang. Thank you to all the speakers and friends from the media. Today's press briefing is at this moment concluded. Goodbye.

Translated and edited by Zhang Rui, Liu Sitong, Ma Yujia, Li Huiru, Zhu Bochen, Zhang Liying, Wang Yanfang, Chen Xia, Gong Yingchun, He Shan, Zhou Jing, Wang Qian, Wang Yiming, Yuan Fang, Cui Can, Jay Birbeck, David Ball and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Lyu Yansong, vice minister of the Publicity Department of the Central Committee of the Communist Party of China (CPC)

Wang Meimei, vice president of the executive board of the China Disabled Persons' Federation (CDPF)

Liu Guoyong, vice minister of the General Administration of Sports of China

Guo Liqun, spokesperson of the CDPF

Chairperson:

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

Date: 

March 3, 2022

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, the SCIO issued a white paper titled "China's Parasports: Progress and the Protection of Rights," which we will now introduce and interpret for you. At this press conference, we are joined by Mr. Lyu Yansong, vice minister of the Publicity Department of the Central Committee of the Communist Party of China (CPC); Ms. Wang Meimei, vice president of the executive board of the China Disabled Persons' Federation (CDPF); Mr. Liu Guoyong, vice minister of the General Administration of Sports of China; and Mr. Guo Liqun, spokesperson of the CDPF.

Now, let's give the floor to Mr. Lyu to introduce the white paper.

Lyu Yansong:

Ladies and gentlemen, friends from the media, good morning. General Secretary Xi Jinping has attached great importance to the wellbeing of the 85 million people with disabilities in China. Since the 18th CPC National Congress, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China has incorporated the cause of people with disabilities into the Five-sphere Integrated Plan and the Four-pronged Comprehensive Strategy. As a result, the rights and interests of people with disabilities have been better protected, and the goals of equality, participation and sharing have been improved. People with disabilities have an increasingly stronger sense of fulfillment, happiness and security.

The "China's Parasports: Progress and the Protection of Rights" white paper, issued by the SCIO today, is also the first white paper in China on the development of parasports.

China has made historic achievements in developing rehabilitation, fitness activities and athletics for people with disabilities, promoting their equal participation in society, and ensuring their right to share in the fruits of the country's development. Developing parasports is an effective way to help people with disabilities improve their physical fitness, pursue physical and mental rehabilitation, participate in social activities, and achieve all-round development. It also provides a special opportunity for the public to better understand the potential and value of disabled people, and promote social harmony and progress. In addition, developing parasports is of great importance in ensuring that people with disabilities can enjoy equal rights, integrate readily into society, and share the fruits of economic and social progress.

The white paper consists of a preamble, main body and conclusion. The main body is divided into five parts, titled "Parasports Have Progressed Through National Development," "Physical Activities for Persons with Disabilities Have Flourished," "Performances in Parasports Are Improving Steadily," "Contributing to International Parasports" and "Achievements in Parasports Reflect Improvements in China's Human Rights." From these five aspects, it is clear to us that parasports are a mirror reflecting the living standards and human rights of people with disabilities. China guarantees their economic, political, social and cultural rights, laying a solid foundation for them to participate in sports, be active in other fields, and achieve all-round development.

First, parasports have progressed through national development. In the cause of socialist revolution and reconstruction, reform and opening-up, socialist modernization, and socialism with Chinese characteristics for a new era, along with making progress in the cause of people with disabilities, parasports have steadily developed and prospered, embarking on a path which has distinct Chinese features and respects the trends of the times. After the founding of the People's Republic of China (PRC), parasports have been gradually launched in the country. Parasports saw rapid progress following China's reform and opening-up and witnessed historic achievements in the new era. General Secretary Xi Jinping has made a series of important proposals and instructions regarding the causes of people with disabilities and parasports, chartering the course for future development. China has incorporated programs for people with disabilities into its overall national plans such as its national fitness program, the Healthy China initiative, and the program to build China's strength in sports. These demonstrate China's institutional strengths in promoting development of the cause of people with disabilities. Throughout the country, understanding, respect, care and help for people with disabilities are growing in strength. More and more people with disabilities are realizing their dreams and achieving remarkable improvements in their lives through sports. The courage, tenacity and resilience that people with disabilities show in pushing boundaries and forging ahead have inspired the whole nation and promoted social and cultural progress.

Second, physical activities for people with disabilities have flourished. At the community level, a variety of rehabilitation and fitness activities for people with disabilities have been organized, and adapted to local conditions in urban and rural areas. People with disabilities regularly participate in national parasports events, such as the National Special Olympics Day, Fitness Week for Persons with Disabilities, and Winter Sports Season for Persons with Disabilities. Every year since 2016, China has hosted a Winter Sports Season for Persons with Disabilities, providing them with a platform to participate in winter sports, and fulfilling the commitment to engage 300 million people in winter sports made during the bid to host Beijing 2022. China has launched a Self-improvement Fitness Project and a Sports Rehabilitation Care Plan to engage people with disabilities in rehabilitation and physical activities. Progress has also been made in parasports education and research. People with disabilities have also become more active in group rehabilitation and fitness activities.

Third, performances in parasports are improving steadily. In recent years, more and more athletes with disabilities have competed in sporting events both at home and abroad. They are willing to meet challenges, pursuing self-improvement, demonstrating an indomitable spirit, and fighting for wonderful and successful lives. Chinese para-athletes have made outstanding performances at major international sporting events. In nearly four decades of participating in international competitions, China's Paralympic delegation has ranked first in both gold medals and total medal count at the past five Paralympic Games. China also won its first-ever Winter Paralympics medal in Pyeongchang 2018, opening a new chapter in the country's participation in Paralympic Winter Games. The influence of national parasports events continues to grow, and China has trained a number of athletes with disabilities and improved their sports skills. Chinese athletes show growing strength in Winter Paralympic sports. From 2015 to 2021, the number of Winter Paralympic sports in China increased from two to six, so that all Winter Paralympic sports are now covered. The number of athletes increased from fewer than 50 to nearly 1,000, and mechanisms for athlete training and support are improving at the same time.

Fourth, China has contributed to the development of international parasports. The white paper systematically explains how China successfully hosted the Being 2008 Summer Paralympic Games, the Shanghai 2007 Special Olympics World Summer Games, the Sixth Far East and South Pacific Games for the Disabled, and the Guangzhou 2010 Asian Para Games, and made full preparations for the Beijing 2022 Paralympic Winter Games and Hangzhou 2022 Asian Para Games. This has given a strong boost to the cause of the disabled in China and made an outstanding contribution to international parasports. China has made full preparations for the Beijing 2022 Paralympic Winter Games. China advances towards a global community of shared future, takes an active part in world parasports affairs, and is deeply engaged in international exchanges on parasports contributing to mutual learning through exchanges between civilizations.

Forth, achievements in parasports reflect improvements in China's human rights. The remarkable achievements of parasports in China reflect both the sportsmanship and sporting prowess of people with disabilities and China's progress in human rights. China adheres to a people-centered approach and promotes the physical and mental health of persons with disabilities. China upholds equality and integration for persons with disabilities in the national conditions. China attaches equal importance to all human rights to achieve all-round development for persons with disabilities. China encourages international cooperation and exchanges in parasports. The development of parasports accords with China's general development; it effectively responds to the needs of persons with disabilities and promotes their physical and mental health. Parasports are a vivid reflection of the development and progress of human rights in China.

Caring for persons with disabilities is a marker of social progress. Developing parasports is vital in encouraging persons with disabilities to build self-esteem, confidence, independence, and strength and pursue self-improvement. It carries forward the spirit of continuous self-renewal. It creates an atmosphere that encourages the whole of society to understand, respect, care for, and support people with disabilities and their causes. It encourages people to work together to promote the all-round development and common prosperity of people with disabilities. During the process of building China into a modern socialist country in all respects, China will take concrete measures to respect and protect the rights and interests of people with disabilities, including the right to participate in sports, to promote the cause of persons with disabilities and meet their expectations for a better life.

Thank you.

Shou Xiaoli:

Thank you, Mr. Lyu, for your introduction. Let's move on to the question-and-answer session. Please identify the media outlet you represent before asking a question.

China Media Group:

You mentioned earlier that this is the first time China has issued a white paper on the development of sports for people with disabilities. How do you see the relationship between respecting and safeguarding human rights and sports for people with disabilities?

Lyu Yansong:

General Secretary Xi Jinping made important remarks while presiding over the 37th group study session of the Political Bureau of the CPC Central Committee on China's position, perspective and the development path on human rights in a holistic and systematic way. He emphasized making further efforts to understand the importance and urgency of human rights work, unswervingly adhering to China's path of human rights development, paying more attention to respecting and safeguarding human rights, and better advancing the development of China's human rights cause. Xi said that the role of groups and organizations should be given full play to better protect the rights and interests of women, children, the elderly and people with disabilities.

Both respecting and safeguarding human rights will not be left behind. Protecting the rights and interests of people with disabilities and developing their cause, including sports, are an important part of the cause of human rights in China. Parasports on the rise mark the cause of people with disabilities in China moving up a notch and a vivid reflection of progress in China's human rights philosophy and practice.

We uphold the Party's leadership and the socialist system, ensure people's position as masters of the country, ensure people fairly share human rights and promote the all-round development of human rights. To provide better protection to persons with disabilities, we have formed a support system in which Party committees exercise leadership, the government assumes responsibility, the public gets involved, and organizations of people with disabilities play their full role. Party committees and governments at all levels should shoulder the responsibility of developing the cause of people with disabilities, incorporate programs for disabled people into their various undertakings, continue to improve the system of safeguarding rights and interests of people with disabilities to fulfill and protect the fundamental interests of the overwhelming majority of the Chinese people, including people with disabilities.

We uphold and respect the primacy of the people and stimulate their enthusiasm, initiative, and creativity, which engages them to become the main contributors, promoters, and beneficiaries of the development of the cause of human rights. China promotes the development of parasports, upholds the combination of improving the well-being of people with disabilities and building up their strength, focuses on respecting and protecting the personal rights and dignity of people with disabilities, respects their will, and pushes them to become real subjects of rights, to ensure their equal status and give them the equal opportunity to participate in social life and enjoy the fruits of the country's material and cultural progress.

We insist on a combination of the principle of human rights' universality and the nation's actual conditions. Acting based on China's actual conditions and people's demands, China has facilitated the progress of human rights, ensured its people enjoy extensive and substantive human rights. The Party and the government have rolled out a series of major measures to develop the cause of people with disabilities and improve their conditions, promoted the parasports and scored historical achievements. The goals of equality, participation and sharing have drawn closer.

China firmly believes that the rights to subsistence and development are the primary and basic human rights, treats people's wellbeing as the primary human right, and fully and faithfully implements the new development philosophy to protect the rights and interests of people with disabilities through development. Since the 18th CPC National Congress, China has set up a special welfare system covering tens of millions of people with disabilities. Persons with disabilities from poor households in rural areas, numbering in the millions, have become a focus in the final fight against poverty. The parasports development has been included in China's national strategies of Fitness-for-All, Healthy China initiative, and Building China into a Country Strong in Sports. The supply of basic public services for persons with disabilities has been improved, and the goal of "building a moderately prosperous society in all respects, leaving no one behind, including persons with disabilities,” was achieved. More and more people with disabilities have received better education, found jobs or started their businesses, and participated in social life on an equal footing. Therefore, their sense of fulfillment, happiness, and security continues to grow.

We safeguard human rights in accordance with the law, adhere to the principles of equality before the law, insist that respecting and protecting human rights should be strengthened to fully cover the whole process of legislation, law enforcement, administration of justice, and observance of the law, and enhance role of the rule of law in protecting human rights. China's legal and regulatory system for protecting the rights and interests of people with disabilities has been set up with the Constitution as the core and the Law of the People's Republic of China on the Protection of Persons with Disabilities as the backbone. It is backed up by the Regulations on the Disability Prevention and Rehabilitation of Persons with Disabilities, Regulations on Education for the Disabled, Regulations on Employment for the Disabled, and Regulations on Building an Accessible Environment.

We actively participate in global human rights governance, enhance common values of humanity, practice genuine multilateralism, and work to build a community with a shared future for mankind. China fulfills its responsibilities and obligations as a signatory to the Convention on the Rights of Persons with Disabilities adopted by the United Nations General Assembly and promotes the international cause of persons with disabilities. Regarding parasports as a significant part of international exchanges among the disabled, China has vigorously boosted regional and global sports development for persons with disabilities. Thank you.

Phoenix TV:

The recent Beijing Olympic Winter Games showed us the charm of winter sports. Could you brief us on China's development of winter parasports and the participation of persons with disabilities in winter sports? Thank you.

Wang Meimei:

China pays great attention to winter parasports. We have taken multiple measures to encourage more persons with disabilities to participate in winter sports in recent years. As a result, especially after China's successful bid for the Beijing 2022 Olympic and Paralympic Winter Games, more and more persons with disabilities took part in and enjoyed the charm of winter sports.

First, although winter Paralympic sports began late in China, they grew quickly in recent years. Before 2015, China only developed Paralympic cross-country skiing and wheelchair curling among six Winter Paralympic sports. In 2002, China participated in the Paralympic Winter Games in Salt Lake City of the U.S. In the Sochi 2014 Paralympic Winter Games, 10 Chinese athletes took part in 2 sports and 6 events, and the wheelchair curling team finished fourth, which was the best ever result for the Chinese winter Paralympic team. In the 2018 Pyeongchang Paralympic Winter Games, Chinese athletes won gold in wheelchair curling, marking China's first medal in Winter Paralympics.

Second, China's successful bid for the 2022 Paralympic Winter Games has generated great opportunities to develop its Winter Paralympic sports. In July 2015, together with Zhangjiakou, Beijing won the bid to host the 2022 Olympic and Paralympic Winter Games, which created major development opportunities for China's winter parasports. Thanks to unremitting efforts during the past few years, China's winter Paralympic sports have made great progress. From 2015 to 2021, the number of Winter Paralympic sports in China increased from 2 to 6, so all Winter Paralympic sports are now covered. In addition, the number of athletes increased from fewer than 50 to nearly 1,000. Since 2018, annual national competitions for sporting events in Winter Paralympics have been held. All the six Winter Paralympic sports - alpine skiing, the biathlon, cross-country skiing, snowboarding, ice hockey, and wheelchair curling - have been included in the National Games for Persons with Disabilities. Since 2016, Chinese parasports athletes have participated in international events related to the Winter Paralympic Games, accumulating experience and improving their capabilities. In the Beijing 2022 Paralympic Winter Games, 96 Chinese athletes will take part in all 6 sports and 73 events. Compared with the Sochi 2014 Paralympic Winter Games, the number of athletes will increase by 86, the number of sports by 4, and the number of events by 67.

Third, taking the Winter Paralympics as an opportunity, China's winter parasports rise. China's successful bid for the 2022 Olympic and Paralympic Winter Games allowed persons with disabilities to feel the charm of winter sports. Since 2016, China has hosted Winter Sports Seasons for Persons with Disabilities for 6 consecutive years, providing them with a platform to participate in winter sports and fulfilling the Beijing 2022 bid commitment of engaging 300 million people in winter sports. The scale of participation has expanded from 14 provincial-level units in the first Winter Sports Season to 31 provinces and equivalent administrative units. Various winter parasports activities suited to local conditions have been held, allowing participants to experience Paralympic Winter Games events and participate in mass-participation winter sports, winter rehabilitation and fitness training camps, and ice and snow festivals. A variety of winter sports for mass participation have been created and promoted, such as mini skiing, dryland skiing, dryland curling, ice cuju (a traditional Chinese game of competing for a ball on the ice rink), skating, sledding, sleighing, ice bikes, snow football, and ice dragon boating. These novel and fun sports have proved very popular among persons with disabilities. In addition, the promulgation of materials such as A Guidebook on Winter Sports and Fitness Programs for Persons with Disabilities provides services and support for persons with disabilities to participate in winter sports and fitness.

Khabar 24:

Besides parasports, how will the Chinese government ensure a barrier-free environment in the everyday life, education and employment of persons with disabilities? What will you do over the next few years? Thank you.

Guo Liqun:

Thanks for your question. The Chinese government attaches great importance to protecting the rights and interests of persons with disabilities. Therefore, it strengthens the building of an accessible environment in all aspects to provide a convenient environment for them to live, study and work.

First, we strengthened legal construction for an accessible environment. China has set up a legal system based on the Law of the People's Republic of China on the Protection of Persons with Disabilities, with the Regulations on Building an Accessible Environment as the backbone, and supplemented by local laws and government regulations. This system provides a fundamental legal enforcement basis for constructing, managing, and supervising an accessible environment.

Second, we included building an accessible environment in the country's overall economic and social development plans and its relevant specialized plans. Creating an accessible environment is strengthened in the 14th Five-Year Plan for National Economic and Social Development, Vision 2035, and a batch of specialized plans focusing on protecting and developing persons with disabilities, improving elderly life, and boosting informatization, tourism and transportation. It is also underlined in the National Human Rights Action Plan, which clarifies China's human rights commitments and fulfills the relevant requirements of the UN Convention on the Rights of Persons with Disabilities. In addition, central departments issued a series of policies and measures to promote accessible environment construction, significantly improving its level.

Third, we promoted accessible environment construction in all aspects and continued to increase the coverage of accessible facilities.

The first is to ensure that newly-built (renovated or expanded) roads, buildings, and residential areas in urban and rural areas are equipped with barrier-free facilities, and increase the barrier-free renovations of existing facilities. 81% of the entrances and exits, 56% of the service counters, and 38% of the toilets among comprehensive service facilities in villages (communities) nationwide have been upgraded for barrier-free access. During the 13th Five-Year Plan period, home adaptation was carried out for 650,000 registered families with severely disabled members, helping them shake off poverty and improve the quality of their life.

The second is to create a barrier-free travel and service environment. The Chinese government continues to strengthen building and upgrading of accessible transport infrastructure, so as to create a barrier-free travel environment. It promotes the application of barrier-free passenger vehicles across the country; 3,598 trains have reserved seats for the disabled; public transport vehicles have special seats for the elderly, the infirm, the sick, and the disabled, and have adopted low-floor buses and barrier-free taxis; and city buses are equipped with visual and audio announcement systems.

The third is to comprehensively promote information accessibility. China strives to solve the difficulties encountered by special groups such as the elderly and the disabled when using intelligent technologies such as the internet, increase the supply of accessible terminal products, push forward the promotion and application of barrier-free products and service technologies, broaden the channels for persons with disabilities to participate in the information society, promote the application of information technology to foster an accessible environment,, and work hard to bridge the "digital divide" to help the disabled enjoy the digital life.

The fourth is to actively promote the construction of a barrier-free environment on campuses and at workplaces. The Chinese government vigorously promotes inclusive education, strengthens the construction and installment of accessible facilities and equipment in schools, and provides relevant supporting services and adequate convenience for students with disabilities to study and live in schools. We have fully guaranteed the employment rights and interests of the disabled; encouraged Party and government organs, public institutions, and state-owned enterprises to take the lead in helping the disabled find jobs; and required employers to improve accessibility of workplaces and provided adequate support for people with disabilities, so as to create necessary labor security conditions for the disabled to find employment.

In the future, the Chinese government will actively implement the requirements of the implementation plan for barrier-free environment construction during the 14th Five-Year Plan period and related regulations and policies, accelerate legislation on the construction of barrier-free environment, implement the working mechanism, improve the policy and standard system, and enhance accessibility of urban and rural infrastructure. It will carry out home adaptation for 1.1 million households with disabled members in financial difficulty and severely disabled members, vigorously promote information accessibility, and further raise the accessibility awareness of the whole society. The government will speed up the building of an accessible environment with complete facilities, complete functions, smooth information, and comfortable experience so as to better facilitate work, life, and study of the disabled, and promote their all-round development and shared prosperity.

Thank you.

People's Daily:

How does the General Administration of Sport of China (GAS) coordinate the development of parasports in the process of implementing national strategies such as the Fitness-for-All initiative, and Building China into a Country Strong in Sports? Thank you.

Liu Guoyong:

Thank you. As you know, sports for the disabled are an important part of the cause of people with disabilities, and it is also an important part of the sound development of our sports. The Party and the state have always attached great importance to sports for the disabled, and especially since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has given top priority to the development of sports, including sports for the disabled, and has made a series of new arrangements for sports from the perspective of national strategy, and put forward a series of new requirements. We believe that in order to implement the requirements of the CPC Central Committee and the State Council, it is very important to strengthen top-level design, especially to strengthen policy guarantees for people with disabilities to participate in sports activities. The "Regulations on the Nationwide Fitness Program" stipulates that "citizens have the right to participate in fitness-for-all activities in accordance with the law,” which clarifies that participation in fitness-for-all activities for all citizens, including people with disabilities, is a basic right that must be ensured. The "National Fitness Plan (2021-2025)" proposes: "support the holding of various sports events for the disabled, and carry out sports and fitness activities involving both the disabled and those in good health,” and further "improve accessibility of public fitness facilities, and carry out rehabilitation and fitness activities for the disabled.” Meanwhile, the "Outline for Building a Leading Sports Nation" proposed: "promote the extensive development of rehabilitation sports and fitness sports for the disabled,” and the "14th Five-Year Plan for Sports Development" proposed to "further improve national fitness public services for the elderly, professional groups, and the disabled."

The GAS and the CDPF have jointly issued the notice on printing and distributing the implementation plan for the development of parasports during the 14th Five-Year Plan period and the guiding opinions on further developing rehabilitation and fitness sports for persons with disabilities, which incorporate the rehabilitation and physical fitness of the disabled into the whole process of national fitness work, so as to guarantee the disabled people's equal right to enjoy sports, realize equal access to basic public services in sports, and further enhance the disabled people's sense of gains and happiness. We believe that with these laws and regulations and the support of relevant policies, governments at all levels will have the basis for exercising law-based administration and the sports sector can also strengthen supervision according to these laws, regulations, and policies so that the disabled people can enjoy a healthier and happier life.

Thecover.cn:

Why should we vigorously develop parasports, and what is the significance and value of doing so? Thank you.

Wang Meimei:

Thank you for your question. First of all, sports are an important way for disabled people to keep fit. Physical activities can promote the healthy development of the body's movement, nerves, circulation, respiration, and digestion, as well as the endocrine, immunity, urinary, and other systems, and make our bodies stronger. By participating in various forms of sports activities, disabled people can also enhance their physical fitness, improve their physical functions, and facilitate their physical and mental health. Therefore, we have adopted various measures to encourage disabled people to actively participate in public sports and competitive sports.

Secondly, sports are an important means to promote the rehabilitation of the disabled. According to the national standard of "Classification and Grading Criteria of Disability,” Persons with disabilities in China include those who have visual, auditory, speech, physical, intellectual, or mental impairments, as well as those with multiple disabilities, while each type of disability is divided into four levels based on the degree of disability. Disabled persons with different types and degrees of disabilities suffer from corresponding physical and mental impairments. Through different rehabilitation methods, the functional impairments may be alleviated or even eliminated, and sports are an effective means of rehabilitation. Through targeted sports activities, the disabled people can build up fitness, enhance capacity to self-support, and improve the quality of life.

Third, sports are an important path for persons with disabilities to

integrate into society. By participating in sports, people with disabilities are encouraged to go out, pursue interests and hobbies, increase their social contact, and enrich their lives. The public is also able to have a better understanding of people with disabilities through their participation and demonstration in sports activities. Assisting persons with disabilities to integrate better into society is an important symbol of the progress of social civilization, and is also a significant goal of the cause of the people with disabilities.

Fourth, sports are an important part of human rights protection for persons with disabilities. The Convention on the Rights of Persons with Disabilities explicitly requires the signatories to take appropriate measures in order to encourage and promote the participation of persons with disabilities in various sports activities. The Law of the People's Republic of China on the Protection of Persons with Disabilities and other laws and regulations contain specific provisions to ensure persons with disabilities can participate in sports activities. Promoting the participation of persons with disabilities in sports is an essential requirement for fulfilling the obligations of the UN's Convention and implementing the provisions of Chinese laws and regulations. And it is also a concrete manifestation of China's protection of human rights. Therefore, we should encourage persons with disabilities to fully participate in sports activities, continuously develop their potential, show a spirit of self-improvement and an optimistic and enterprising spirit, and demonstrate the basic freedom, dignity, value, and power of mankind.

In practice, especially after the majority of persons with disabilities have achieved poverty alleviation and prosperity, they have a stronger demand for cultural life, including sports activities. Participation in sports has become an indispensable part of a better life for persons with disabilities, and more have been enjoying the joy brought by sports.

Thank you.

Southern Metropolitan Daily:

We were deeply impressed by the extraordinary results of Chinese athletes at the Summer Paralympics in Tokyo last year. Could you brief us a little about what outstanding achievements China has made in the field of competitive sports for persons with disabilities? Thank you.

Wang Meimei:

Thank you for your question. I'll answer this. We all know that the Chinese parasports athletes have given outstanding performances at major international sporting events. In 1984, the Chinese Paralympic delegation made its debut at the Seventh Summer Paralympic in New York, USA, for the first time, and they won their first ever Paralympic gold medal. Since then, there has been an upsurge of enthusiasm for sports among people with disabilities, and at the following Summer Paralympics, Team China's performance showed a marked improvement. In 2004, at the Summer Paralympics in Athens, the Chinese delegation ranked first in both medals and golds won. In 2021, at the Summer Paralympics in Tokyo, Team China topped both the gold medal tally and the overall medal standings for the fifth consecutive time. At the same time, since 1987, Chinese athletes with intellectual disabilities have participated in nine Special Olympics World Summer Games and seven Special Olympics World Winter Games. In 1989, Chinese deaf athletes made their international debut at the 16th World Games for the Deaf. Meanwhile, Team China performed very well in the Asian Para Games. During the 13th Five-year Plan period (2016-2020), China sent delegations of parasports athletes to participate in 160 international sporting events and won a total of 1,114 gold medals.

National sports events are also wonderful. Since China organized its first National Games for Persons with Disabilities (NGPD) in 1984, 11 such events have been held, with the number of sports increasing from three – Athletics, Swimming and Table Tennis – to 34. Since the third games in 1992, the NGPD has been listed as a large-scale sporting event ratified by the State Council and held once every four years. This confirms the institutionalization and standardization of parasports in China. In 2019, Tianjin hosted the 10th NGPD (together with the Seventh National Special Olympic Games) and the National Games of China. This made the city the first to host both the NGPD and the National Games of China. In 2021, Shaanxi hosted the 11th NGPD (together with the Eighth National Special Olympic Games) and the National Games of China. It was the first time that the NGPD had been held in the same city and during the same year as the National Games of China. This allowed synchronized planning and implementation and both games were equally successful.

Para-athletes train hard, challenge the limits, forge ahead, and have the courage to win – the keys to achieving extraordinary results. In the Tokyo 2020 Paralympic Summer Games, Team China won 96 gold medals, 60 silver medals, 51 bronze medals, and broke 29 world records. This not only represents outstanding performance but also the Chinese spirit displayed by Team China in the international arena. This spirit is the noble spirit of patriotism, unyielding national spirit, the collective spirit of unity, and the spirit of optimism. It is a source of strength and spiritual support for our athletes and coaches to overcome their difficulties.

China's achievements in competitive sports for persons with disabilities are the result of the dedication of many unsung heroes. The decades of perseverance and hard work of several generations of sports workers for persons with disabilities in China have laid the foundation for the great development of these sports. Among these workers, there are coaches, research teams, and staff, of high professional level, and full of love and selfless dedication. And there are also the para-athletes guides and other assistants who have accompanied the para-athletes all year around. These people are the unsung heroes behind our outstanding results. They have helped para-athletes in their training and competitions, grown with them, and ensured that every athlete is in the best condition to achieve the best result in competition.

China's sports cause for persons with disabilities has been developed in the course of opening up. We would like to express our honest thanks to our international counterparts for their sincere help.

China Daily:

The Beijing 2022 Paralympic Winter Games is just around the corner. Could you tell us a little about the current preparation status of the Chinese delegation? What expectations do we have for this Paralympic Winter Games? Thank you.

Wang Meimei:

The para ice hockey, para-alpine skiing, para snowboarding, para cross-country skiing, and para biathlon teams of the Chinese delegation for the Beijing 2022 Paralympic Winter Games checked in into the Paralympic villages in Beijing, Yanqing, and Zhangjiakou, respectively, on February 25. And the wheelchair curling team checked into the Beijing Paralympic village on March 2.

Currently, the athletes in the villages have been training before their competitions, which mainly includes adapting to the venues, getting familiar with the competition streamline, improving the competition plan, and adjusting their psychological state. They are looking forward to the upcoming Games.

Compared with summer Paralympic sports, winter Paralympic sports in China got off to a later start, have a relatively weak foundation and are still improving. At the Sochi 2014 Paralympic Winter Games, which was held before Beijing's bid to host the Winter Games, China only had 10 athletes participating in two sports and six events. This time, a total of 96 athletes from China are taking part in all six sports and 73 events. Our objectives are:

First, to demonstrate to the world the spirit of perseverance of Chinese people with disabilities in the new era. Paralympians are focused on displaying their spirit. General Secretary Xi Jinping has highly praised the indomitable and hard-working spirit of China's para-athletes. Even though the competitiveness of China's Paralympians is still improving, their spirit in seeking to meet challenges and pursue self-improvement will undoubtedly inspire us to fully demonstrate their sound spirit.

Second, to present China's achievements in developing winter Paralympic sports. General Secretary Xi Jinping has made several important instructions for the preparatory work of the Beijing Winter Olympics and Paralympics. Following the important instructions, the CDPF considered the preparation and competition as a major political task, set up a leading group for the Beijing 2022 Paralympic Winter Games to guide the preparatory work for the Game. Through six years of concerted efforts of the disabled persons' federations at all levels across the country, we achieved fundamental breakthroughs in our Paralympic winter sports. This year marks China's sixth participation in the Winter Paralympics, featuring its largest-ever delegation and highest-ever number of athletes, who are participating in more categories of sports and events at the Games than ever before.

Third, to strive to achieve good results and win honors for the country. On Feb. 24, General Secretary Xi Jinping wrote a reply to Chinese snowboarder Su Yiming. The Chinese delegation organized its members to study the guiding spirit of the letter in the first place and was determined to follow the spirit to act on the pledge of "keeping the mission in mind and striving together," and to work hard and transcend the self to achieve excellent results and achieve glory for the country.

Thank you.

Beijing Youth Daily:

Just now it was mentioned that equal participation in sports represents an important right for people with disabilities. Can you elaborate on how China has safeguarded equal participation for people with disabilities in sports by law? Thank you.

Lyu Yansong:

First, China has not only included parasports in its national fitness program, Healthy China initiative, and program to build China's strength in sports, but also strengthened equal protection and special assistance for the rights and interests of people with disabilities through legislation, confirming their specific right to participate in sports. Among the regulations, articles 41 to 45 of the Law of the People's Republic of China on the Protection of Persons with Disabilities stipulates the concrete measures that the government and society should take to ensure that people with disabilities enjoy rights related to culture and sports. Article 16 of the Law on Physical Culture and Sports stipulates that the whole of society should care for people with disabilities and support their participation in sports. All levels of government should take measures to ensure people with disabilities have better access to sporting events. Article 45 also stipulates that public sports facilities should make it convenient for people to conduct sports activities and implement preferential measures for people with disabilities.

Second, the Chinese government has actively promoted the construction of barrier-free environments, and effectively guaranteed the equal participation of people with disabilities in all sports activities. For example, in 2019, Beijing launched a special program to foster a barrier-free environment, focusing on 17 major tasks in key areas such as urban roads, public transport, public service venues, and information exchange. A total of 336,000 facilities and sites have been modified, realizing basic accessibility in the core area of the capital city, making its barrier-free environment more standardized, accommodating and systemic. Zhangjiakou has also actively nurtured a barrier-free environment, leading to a significant improvement in accessibility.

Third, China has continuously improved its public sports service system and vigorously promoted the equal participation of people with disabilities in rich and colorful sports and cultural activities. Both the Law on Guaranteeing Public Cultural Services and the Regulations on the Nationwide Fitness Program require corresponding cultural and sport services be provided according to the physical and mental characteristics and needs of people with disabilities. In the efforts to implement the national fitness program, governments at all levels have innovated service methods and launched extensive rehabilitation and fitness activities for people with disabilities at the grassroots level. To improve the sport service ability, local regions have also established sport instructor teams for people with disabilities, so as to effectively guarantee the right of people with disabilities to enjoy basic public sport services. Thank you.

The Beijing News:

Parasports is an essential part of China's national fitness program. Therefore, I would like to invite the speaker of the General Administration of Sports of China to share what advancements have been made on public fitness services for persons with disabilities.

Liu Guoyong:

Thank you for your question. Mr. Lyu and Ms. Wang have elaborated on the importance for persons with disabilities to participate in sports activities. As you mentioned, as part of our efforts to ensure that persons with disabilities can be part of the national fitness program, we will improve the relevant public service system. From the perspective of sports, we should make efforts in the following three aspects to improve the national fitness public service system for persons with disabilities.

First, we will provide more accessible sports facilities. Second, we will organize more sports activities for persons with disabilities. Third, we will strengthen guidance for persons with disabilities when they participate in sports activities.

Regarding this, the General Administration of Sports of China has made efforts in the following aspects.

First, we have channeled central funds to promote the implementation of the Disability Support Project under the National Fitness Program at the local level. As we see, many communities have equipped with fitness facilities and trails. Now, the needs of persons with disabilities were also considered in our efforts to improve those sports facilities and trails. We have accelerated the implementation of regulations on barrier-free facilities design at various kinds of public fitness venues to enhance all fitness equipment and facilities for persons with disabilities. Additionally, we have encouraged relevant enterprises to research and develop fitness equipment and facilities customized for persons with disabilities and mobilized all social forces to provide public services for persons with disabilities. We have jointly issued the National Basic Public Service Standards for Mass Sports and the Basic Public Standards for Public Sports Venues with relevant departments to provide a more suitable fitness environment for persons with disabilities.

Second, we have provided support and guidance for local sports authorities and parasports organizations to better serve persons with disabilities when they participate in sports activities. Only by organizing them to engage in more activities can they further integrate into society, better playing the role of fitness. Not only on the National Fitness Day but many other important occasions for parasports, we should never forget the essential right of persons with disabilities in participating in sports. Additionally, we have played a positive role in cooperating with the CDPF in international sports events over the last few years. We have provided more convenience and opportunities for persons with disabilities to participate in sports with the successful operation of a series of comprehensive sports events represented by the Paralympic Games, the Asian Paralympic Games, and the National Games for Persons with Disabilities.

Third, it's essential to have specialized personnel to instruct persons with disabilities to participate in sports activities. We have more than 2 million social sports instructors. In recent years, we have improved relevant teaching materials on training for persons with disabilities during the instructor training process, which has enabled the social sports instructors to better understand the characteristics and patterns of persons with disabilities when they engage in sports activities to effectively guide them to participate in sports, build up their body strength, and better integrate into society.

Thank you.

Shou Xiaoli:

Thank you to all the speakers and friends from the media. Today's press conference is with this concluded. Goodbye.

Translated and edited by Lin Liyao, Liu Sitong, Zhang Rui, Zhang Junmian, Yan Xiaoqing, Wang Yanfang, Zhang Tingting, Zhou Jing, Qin Qi, Li Huiru, Wang Qian, Zhu Bochen, Yang Xi, Jay Birbeck, David Ball and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission

Hu Xiaolian, chairman of the Export-Import Bank of China

Chen Siqing, chairman of the Industrial and Commercial Bank of China

Tian Guoli, chairman of the China Construction Bank

Bai Tao, Party secretary of China Life Insurance (Group) Company 

Wang Sidong, chairman of China Taiping Insurance Group Company Limited

Chairperson: 

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

Date: 

March 2, 2022

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office. Today, we are delighted to be joined by Mr. Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission (CBIRC), who will introduce China's efforts to promote a virtuous cycle of finance and economy amid high-quality development, and answer your questions. Also present at the press conference today are Ms. Hu Xiaolian, chairman of the Export-Import Bank of China (China Exim Bank); Mr. Chen Siqing, chairman of the Industrial and Commercial Bank of China (ICBC); Mr. Tian Guoli, chairman of the China Construction Bank (CCB); Mr. Bai Tao, Party secretary of China Life Insurance (Group) Company; and Mr. Wang Sidong, chairman of China Taiping Insurance Group Company Limited. 

Now, I will give the floor to Mr. Guo Shuqing.

Guo Shuqing:

Thank you, Ms. Shou. Ladies and gentlemen, comrades and friends, good afternoon. I am very happy to be speaking with you about the development of China's banking and insurance sectors. First of all, on behalf of the CBIRC and the other speakers, I would like to express my sincere gratitude to friends from the media for your constant interest and support regarding the financial services sector.

2021 was a landmark year in the history of our Party and our country. The CBIRC and the entire banking and insurance sectors have followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; grasped the decisive significance of establishing Comrade Xi Jinping's core position on the CPC Central Committee and in the Party as a whole, and defining the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; strengthened our consciousness of the need to maintain political integrity, think in big-picture terms, follow the leadership core, and keep in alignment with the central Party leadership; stayed confident in the path, theory, system and culture of socialism with Chinese characteristics; upheld General Secretary Xi Jinping's core position on the CPC Central Committee and in the Party as a whole, and the Party Central Committee's authority and its centralized, unified leadership; borne in mind the country's most fundamental interests; and implemented the decisions and plans of the CPC Central Committee and the State Council. Following the specific directions of the financial stability and development committee under the State Council, we have risen undaunted to face challenges and acted proactively, thus achieving solid progress on multiple fronts.

First, we have made persistent efforts to forestall and defuse financial risks. With regards to the requirements put forward by General Secretary Xi Jinping at the 2017 National Financial Work Conference, by the end of 2019, substantial progress had been achieved in forestalling and defusing major financial risks, and risks in eight areas had been significantly constrained. In 2020, due to the unprecedented COVID-19 pandemic, the leverage ratio of all national economic sectors rebounded. In 2021, risks in key areas continued to be contained, the macro leverage ratio fell by around 8 percentage points, and asset expansion in the financial system, back to a comparatively low level, re-entered the single-digit range. From 2017 to 2021, high-risk shadow banking worth up to 25 trillion yuan has been dismantled, decreasing by 11.5 trillion yuan within the past two years. Non-performing assets worth 12 trillion yuan were disposed of in the past five years, of which more than 6 trillion yuan was handled within the past two years. The hidden debt of local governments has been reduced. The financialization and bubbles in real estate have been curbed. A number of high-risk enterprises and financial institutions that violated laws and regulations have been dealt with in an orderly manner. All internet-based P2P lenders have been shut down, and the outstanding loan balance has been reduced to 490 billion yuan. A total of 25,000 illegal fundraising cases have been investigated and dealt with. China's resilience against external shocks has been improved.

Second, we have contributed to the national economy's return to steady growth. We have met the reasonable and effective financing needs of the real economy and promoted the stable recovery and virtuous cycle of the national economy. In 2021, RMB loans increased by nearly 20 trillion yuan, and banks and insurance institutions issued 7.7 trillion yuan in bonds. The balance of medium- and long-term loans to manufacturers increased by nearly 30% year on year, loans for scientific research increased by 28.9%, and green credit by 21%. We have strengthened financial services for fields severely affected by the pandemic, and the policy to postpone principal and interest repayments on loans will be smoothly shifted after the extension period. We have provided strong support for the normal operation of the coal-fired power industry. Insurance payments increased by 14.1%. About 11.6 billion yuan of payments were allocated for reconstruction after heavy rains in Henan and Shanxi provinces. COVID-19 vaccine insurance has provided risk protection via over 2.8 billion doses of vaccines.

Third, we have opened up new prospects for inclusive financial services. The volume of financial services for small and micro enterprises has increased and the cost has decreased. In the past four years, the annual average growth rate of inclusive loans to small and micro enterprises exceeded 25% and the interest rate fell by more than 2 percentage points. Innovative products such as online insurance and digital credit have developed rapidly. Inclusive financial services have become more extensive and targeted. Large and medium-sized banks leveraged their advantages in technology and data to continuously improve their ability to serve long-tail customers, remote areas and rural revitalization. In 2021, inclusive loans granted by the five largest banks to small and micro enterprises increased by 41.4%. Serious illness insurance covered 1.22 billion urban and rural residents. Agricultural insurance provided 4.7 trillion yuan of risk protection for 180 million households. We advanced the regulated development of the commercial endowment insurance — the third pillar in China's three-pillar pension system. The pilot area of exclusive commercial endowment insurance has been expanded to the whole country. The pilot program for pension wealth management products has been expanded to "10 places and 10 institutions." Another pilot program for pension savings will be launched soon. Commercial pension services for low- and middle-income groups are also being prepared. According to reports by the World Bank and the International Monetary Fund, China's inclusive financial services have maintained an international leading level.

Fourth, we have continued to deepen the reform and opening-up of the banking and insurance sectors. We have implemented the Three-Year Action Plan for corporate governance, continuously improved the modern financial enterprise system with Chinese characteristics, and integrated Party leadership with corporate governance based on the conditions of different regions and institutions. We have taken province-specific measures to deepen the reform of small and medium-sized banks and rural credit cooperatives according to local situations. Zhejiang Rural Credit Union has been restructured into Zhejiang Rural Commercial Union Bank. We have improved the professional management capabilities of small and medium-sized financial institutions, promoted the development of the professional manager market, and started construction on China's financial talent pool. We have deepened the reform of property insurance and life insurance. The comprehensive reform of auto insurance saved more than 250 billion yuan for consumers. The Solvency Regulatory Rules for Insurance Companies (II) has been formulated. We have revised support systems to open up the financial sector at a higher level. A group of international financial institutions with first-class professional advantages in wealth management, non-performing asset disposal, and pension finance have entered the Chinese market.

Fifth, we have resolutely curbed the disorderly expansion of capital in the financial sector. We have strengthened the supervision of non-financial enterprises investing in financial institutions, and consolidated the firewall between industrial capital and financial capital. We have regularly carried out special campaigns to strengthen oversights of shareholders' equity and related party transactions. We have removed the equity of shareholders who violated rules at high-risk institutions in an orderly fashion, and cracked down on illegal shareholders who maliciously hollowed out financial institutions. Four groups of shareholders in violation of laws and rules have been made public. We have put equal emphasis on regulation and development, and adhered to the principle that financial innovation must be made under prudent supervision. We have given equal treatment to the same types of business and entities, and brought internet-based financial business under regulation in accordance with the law. We have strengthened financial anti-monopoly and anti-unfair competition measures, and regulated business cooperation between licensed institutions and internet platforms to maintain market order.

Sixth, we have continued to advance oversight and regulation in a tough manner. We have exercised full and strict governance over Party members and taken integrated steps to punish financial corruption and prevent and control financial risks. We have ramped up efforts to investigate the financial corruption behind the various problems in the financial sector. We have stepped up efforts to strengthen the rule of financial law, improve the rule of law in the bond market, and unify the basic rules for corporate credit bonds. We have promoted financial stability and accelerated the legislation of financial derivates to manage them with "unified regulations and rules." In 2021, the CBIRC amended and released 14 rules and 44 regulatory documents. In addition, we have made the penalties for violating laws and regulations much more costly. A total of 3,870 punishments were meted out to banking and insurance institutions and 6,005 people responsible were punished last year, with confiscated illicit gains or fines totaling 2.7 billion yuan.

Under the overall deployments of the CPC Central Committee, Party committees or leading Party members groups of the financial authorities and financial institutions at all levels are making great efforts to implement thorough rectification according to the results of the eighth round of disciplinary inspection by the 19th CPC Central Committee. We will fulfill the political responsibilities in this regard. We are now formulating rectification plans, and work to ensure that the plans will be very specific to address all of the problems in a comprehensive manner, following the requirements of the CPC Central Committee to strengthen inspection and rectification and ensure better utilization of the inspection results. We need to make solid efforts to ensure that we can learn by analogy and address both the symptoms and root causes. We will be resolved to push reform, take on responsibility, and establish a long-term mechanism to complete the rectification in a high-standard and strict manner. At the same time, we will also urge the financial enterprises to implement rectification measures and resolve the problems found in fulfilling duties. We will further implement the spirit of the 19th CPC National Congress and the plenary sessions of the 19th CPC Central Committee, uphold the leadership of the CPC Central Committee over the financial work and practice the new development philosophy in a thorough, accurate and comprehensive manner. We will ensure that our rectification in response to the disciplinary inspection will enable us to better serve the real economy, prevent and defuse financial risks, and deepen financial reform and opening up to promote high-quality development of the banking and insurance industry, and greet the convening of the upcoming 20th CPC National Congress with concrete actions.

That concludes my introduction. Next, my colleagues and I would like to answer your questions. Thank you all!

Shou Xiaoli:

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

CCTV:

The Central Economic Work Conference pointed out that China's economic development faces triple pressures of demand contraction, supply shocks, and weakening expectations. What policies and measures will the CBIRC adopt to enable the financial sector to support the stable growth of the real economy? How will the ICBC and other financial institutions implement all these measures? Thank you.

Guo Shuqing:

Indeed. Due to the uncertainties caused by the COVID-19 pandemic at home and abroad, as well as the changes in the environment in other aspects, economic demand is not very strong, with the growth of both consumption and investment being slow. We thereby have to adopt some strong measures. However, we are not talking about a deluge of strong stimulus measures to ease the monetary policies. Fiscal policies will also promote structural adjustments with more specific measures. For the banking and insurance sector in this regard, we hope to promote consumption and expand investment in a targeted manner.  

To be more specific, we will first support the production and operation of micro, small and medium-sized enterprises, especially those struggling with difficulties. 

Second, we will support rural revitalization. The modernization of rural areas remains arduous, although we have achieved the targets and tasks of poverty alleviation. Rural revitalization needs to boost development in various aspects regarding infrastructure and public cause, such as transportation, roads, energy, water supply, power supply, and schools and hospitals. Moreover, the housing conditions of the rural people need to be improved. Ultimately, rural revitalization is one of our priorities.

Third, after soliciting opinions of a dozen departments, the CBIRC and the People's Bank of China will soon release a document that aims to offer financial services to "new urban residents." The "new urban residents" refer to people who live in cities but have not yet obtained an urban hukou or those who have had an urban hukou for less than two or three years. There are more than 300 million such new urban residents, and they have a rigid demand for housing, jobs, starting up businesses, renting or buying a home, child education, and eldercare. We’ve learned from investigation that these people from rural areas are self-employed individuals or migrant workers who are not in permanent employment. According to statistics, the average working time for rural migrant workers in a company or their posts is around six months. However, they are usually required to submit an income certificate while applying for loans, which is quite tricky for them to do. Child education is also a problem for them. As such, we would like to launch a special document to offer advice for the banking and insurance institutions to provide better services for these "new urban residents." This has been a part of our efforts, in general, to deal with the issues related to agriculture, rural areas, and farmers. Besides this, the financial sector needs to continue to shore up the weak links on various fronts, such as the aforementioned micro and small enterprises, rural revitalization, scientific & technological innovation, and green development. Our efforts will follow market and commerce principles. 

Chen Siqing:

Thank you, Mr. Guo. Thanks for the question. Mr. Guo has briefly introduced the support measures of the financial sector, the banking and insurance sector in particular, for the real economy. I'd like to continue to make a general introduction about the measures the ICBC has implemented to support the real economy, especially the manufacturing sector in this regard. 

It is the responsibility of the financial sector to offer services for the real economy, which is also the principle that we must follow. In recent years, under the leadership of the CPC Central Committee and the State Council and the guidance of the CBIRC, we have continued to ramp up efforts to support the development of the real economy, achieving remarkable results.

In 2021, ICBC's new loans hit a new high record, with most of them going to the key areas and weak links of the real economy. The average interest rates of the newly issued inclusive loans and those to manufacturing businesses dropped from the 2020 level. The rates of 2020 dropped remarkably from the previous year's level, and they saw a further reduction in 2021, which has effectively helped the manufacturing enterprises, especially those small and medium-sized companies, in terms of reducing costs and enhancing efficiency.

The ICBC has always been committed to offering services to the industrial and manufacturing sectors. In recent years, in response to the national efforts to strengthen manufacturing, we have stepped up efforts to tackle the pains, difficulties, and impediments in financial services to serve the manufacturing sector better. The measures that we've adopted are as follows:

First, we increased loan support. In the past three years, the ICBC's new loans for the manufacturing industry exceeded 100 billion yuan, 200 billion yuan and 300 billion yuan, respectively. The cumulative growth rate exceeded 40%, and the loan balance exceeded 2 trillion yuan. During the 14th Five-Year Plan period, we will strive to take the lead in breaking the 3 trillion yuan loan balance for the manufacturing industry. 

Second, we helped stabilize and solidify the industrial chain. By the end of 2021, the ICBC's financing balance for core enterprises in the industrial chain in the manufacturing industry exceeded 750 billion yuan, and financing for upstream and downstream manufacturing enterprises in the industrial chain exceeded 300 billion yuan.

Third, we highlighted key areas. We improved the "credit + non-credit" comprehensive service system. We not only provided credit support, but also contributed to the high-quality development of the manufacturing industry by building an "overpass" for manufacturing industry financial services. By the end of 2021, the ICBC's financing balance for strategic emerging industries exceeded 1 trillion yuan, supporting the manufacture of domestically-produced large aircraft, Fuxing high-speed trains and other major machinery made in China.

At the same time, we have also been paying special attention to the development of small- and medium-sized manufacturing enterprises "with high growth potential, advanced technology and strong market competitive edge" in accordance with the national strategic policy, and we continue to provide specialized financial services in a targeted manner.

All of you are very interested in these enterprises with high growth potential, advanced technology and strong market competitive edge. The ICBC has set up a special mechanism, issued a special plan serving these enterprises, and launched a special campaign. The bank has established 11 financial service centers at headquarter-level for scientific and technological innovation enterprises, and established 100 specialist sub-branches of the bank. By the end of 2021, the number of corporate credit customers of enterprises with high growth potential, advanced technology and strong market competitive edge exceeded 15,000, and the financing balance exceeded 100 billion yuan, with a growth rate of more than 18%.

At the same time, we have developed exclusive plans for enterprises with high growth potential, advanced technology and strong market competitive edge. We launched a special loan financing plan for these enterprises to fully meet their financial needs, and proactively granted credit to more than 6,000 such enterprises.

We offered exclusive products. We have accelerated the promotion of intellectual property pledge loans, actively promoted investment and loan linkage, established long-term cooperation with enterprises, actively solved the problems of difficult and expensive financing for enterprises, and helped enterprises avoid premature dilution of equity and achieve stronger and better performance.

Of course, we are also soberly aware that we still have shortcomings in serving the real economy. Going forward, the ICBC will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and actively implement the rectifications required by the CPC central inspection teams. We will actively implement the new development philosophy, serve the new development paradigm, and make substantive efforts in serving the real economy as the starting point and objective of our work. We must practice the people-centered development philosophy and unswervingly follow the path of financial development with Chinese characteristics. Thank you.

Economic Daily:

My question is for Chairman Tian of the CCB. Everyone says "if you want housing, go to the CCB," what is your opinion on the current real estate market and its regulatory policies? How do you see risks in the real estate market and future trends? Thank you.

Tian Guoli:

The slogan "if you want housing, go to the CCB" was put forward by the CCB more than three decades ago. At that time, everyone in the country lived in public rental housing, and basically no one was purchasing a house. When we were on the road to housing reform, people struggled to scrape together 50,000 yuan or 100,000 yuan to buy a house. However, people couldn't afford it and were under a lot of pressure. China wanted to develop quickly and so needed to solve the problem of housing marketization, so the CCB took the lead in proposing "if you want to buy a house, go to the CCB." At that time, we designed some financial products along this way of thinking, including the mortgage loans that everyone is now familiar with and has experienced.

With the gradual deepening of market reforms and the increase in the rate of home ownership, it is now basically market-oriented. We have seen a deep-seated problem, that is, the rent-to-purchase ratio needs to be balanced. At present, it is not very balanced. The price-to-rent ratio is basically 1:700. From a financial point of view, it is necessary to design new products to rebalance this problem. Everyone remembers "if you want to buy a house, go to the CCB," but I hope everyone can remember "if you want to rent a house, go to the CCB." It's more cost-effective (to rent a house), given the ratio of 1:700, even in global terms. No matter how much housing prices fall in the future, it will still be difficult to truly solve the issue of housing for the working class, and especially difficult to meet the housing needs of ordinary people, those without savings, migrant workers, and new urban citizens. In the future, we need to rely on rental housing to solve the problem. Since the 18th CPC National Congress in particular, we have emphasized that people are the center, the housing market must be controlled rationally, and there must be a new model. Now the rate of people renting is over 10%, which is already pretty good. Our goal is to push the figure up to more than 30%. Then there will be a fundamental change in the country's real estate market. In other words, it is still the implementation of the saying, "housing is for living in, not for speculation."

The CCB is a major state-owned bank. On the one hand, we should undertake our social responsibilities. On the other, we also have strong professional design capabilities. The CCB already launched a housing rental platform more than four years ago. While the platform is not perfect, it has already covered more than 300 cities across the country. We are working hard to establish relationships with houseowners, and also trying hard to connect with the market and customers. In this regard, the CCB is not engaged in this platform to seek benefits, instead we hope to try and help balance this long-term problem that has troubled society.

As you all know, the real estate issue is a worldwide problem. After Japan's housing bubble burst in the early 1990s, it had a profound impact on its economy. The subprime mortgage crisis in the United States actually stemmed from excess real estate. Fortunately, we have some policy and institutional strengths. But how can we use financial market-oriented means to gradually turn these advantages into economic momentum for sustainable development? We feel stronger and stronger that if we continue to design financial products around this, we will see a new scenario, that is, many residents will gradually become accustomed to renting in the future. You may have noticed that we have some slogans, the first is "if you want to rent a house, go to the CCB" and the second is "housing is for living in, renting is pretty good." In fact, from the perspective of financial management, renting is also a good idea, because now people don't always think that the value of a house will appreciate after buying. That era has now passed. Even if the house appreciates, it is very difficult to cash out. In fact, Europe has some good models for this, and has many financial products for people to manage their money, such as the stock market, bond market and rare metals. People can turn to these as it will be quicker to make money, and they are all relatively good in terms of liquidity, security and being risk-proof. In fact, real estate is not a particularly ideal asset for buying and selling. As the market matures in China, the era of relying on renting will soon definitely come.

Centering on this thought, the CCB put forward the slogan that "If you want to deposit a home in a bank, choose CCB." To be precise, there are some structural problems in the Chinese housing market. The housing vacancy rate is relatively high, and the rental market is unbalanced in two aspects. On one hand, from a landlord's perspective, it's still unclarified how laws would protect their income, and how they would enjoy preferential policies on the tax. Currently, we're discussing these issues with related departments. On the other hand, people may feel it's not so convenient to rent homes. Some leases can be cut short when landlords change their minds. Therefore, renters often lack a sense of stability in their lives.

The CCB put forward another notion that "Long-term rental means long-term stay; long-term stay equals settling down." From the perspective of a new urban resident, if the fixed term could last for three, five, or ten years, it should be enough. Even if you buy homes, you may want to purchase new ones after five to eight years or have new demands. We try to satisfy the needs of new urban residents through these means. There are now over 38 million people registering on the platform of the CCB to conduct transactions of this kind. At the same time, the CCB has a deposit of nearly 130,000 apartments. Sometimes we feel that landlords are not unwilling to rent out homes, since they may not rest assured, apart from taxes and troubles involved. But if the CCB assumes the responsibility, it will help improve their credit. As people have already deposited money in banks, why not homes? At the same time, we use our advantages in this aspect and try to fix long-term periods. During the years when the apartments are deposited in banks, we lock the rent and term to offer a stable home for new urban residents as possible as we can. Gradually, people will get used to renting homes, and it will become a choice and a normal for more new urban residents. We have offered some products in this aspect. We've also set up a housing rental industry alliance which unites sectors like housing design, renovation, and building materials. As for old apartments, the CCB established a comprehensive housing rental system entitled "CCB Jianrong Home." As some neighborhoods were outdated, we employed the best designers to design and renovate them with the best, high-quality, environment-friendly, and branded sanitary ware to lower the cost and offer new urban residents an affordable price. Usually, these run-down areas are located downtown, so the rental should be affordable for them. In Guangzhou, we built homes for sanitation workers through collaboration with the government. They are located in the downtown area, and are just hundreds of steps away from the river bank. These apartments have separate restrooms and kitchens. Though each one is probably about 20 square meters, our exquisite design makes it decent and comfortable. We also have many homes for high-end talents with elaborate designs. The mechanism can be more flexible with rental as the mainstay. It can satisfy the housing rental needs of all strata of society.  

Finally, I would like to emphasize that the CCB does not aim to replace property agencies by doing this, but expects to help more property agencies get involved in the transition of the market, based on our responsibility and integrity, including our financial support capacity, and jointly build a new market supply. We believe it can help find a complete solution for the balance of properties in the long run. If the ratio of rental to purchase reaches 4:6, the real estate market would be very stable, and the concern be eased. The CCB has made some attempts, but we're still far away from the target. I hope the media will pay attention to our practice, come to the CCB and CCB Jianrong Home across China for a visit, and promote our notion. Thank you.

Guo Shuqing: 

Mr. Tian has talked a lot. He has a good idea and encourages us to rent homes. The housing price declined last year, and the bubble and monetization of properties have been reversed fundamentally. The real estate market is not as active as before, but housing is still in demand, especially its rental and renovation. Therefore, it's of great significance to provide such financial services. We had a slogan in the past that "if you want to have homes, go to CCB." Over twenty years ago, applying for individual housing loans was inconvenient. I have my own experience. At that time, I served as the head of the State Administration of Foreign Exchange and applied for the housing provident fund loan from the CCB. It took half a year from my application to the issuance of the loan. However, afterwards, the financial services in real estate improved at a fast speed. Currently, housing mortgages are issued in great number and they account for a high proportion of loans from large banks. We always remind those banks that they should pay attention to risks as many buy homes for investment and speculation. If the home prices fell in the future, or other problems appeared, a huge financial crisis would arise. Some adjustments in the price of real estate and changes in the demand structure are good things for the financial industry. But we hope the adjustments are not that acute or exert huge influences on the economy. We need a smooth transition. That is all I want to add.

Red Star News:

China's import and export of cargoes and services contributed over 20% of GDP last year. In recent years, the financial sector has enhanced support to exports and offered them a lot of credit funds. So my question is, how does the financial industry support high-quality trade development? Are they equal to export subsidies in real terms? Thank you.

Guo Shuqing:

They're definitely not subsidies. They are all commercial banks and should make money. Their profits, especially those of large banks, grew significantly. Let's give the floor to our authoritative expert Ms. Hu Xiaolian to answer the question. 

Hu Xiaolian:

I'll make an illustration for the question. In the past two years, against the backdrop of the severe pandemic globally, China's exports have maintained great momentum, showcasing the strong resilience of China's foreign trade. China's exports have played an active role in stabilizing global products and industries and ensuring a stable supply. It is indeed difficult to achieve the accomplishment as foreign enterprises have also faced many common obstacles, such as the pandemic. Meanwhile, many uncertainties exist in the industrial and supply chains, and transportation also faces difficulties. Recently, the surge of commodity prices, the turbulence of international markets, changes in exchange rates, and the risk of geopolitics have all brought significant challenges for foreign trade enterprises to maintain steady growth.  

The CPC Central Committee and the State Council have attached great importance to it, as keeping foreign trade stable is an important part of ensuring stability on the six fronts and security in the six areas. Offering financial support for foreign trade is the major responsibility and task of the Import-Export Bank of China. We have always put supporting high-quality development of foreign trade as a key component of financial services, and made efforts in the following aspects.

First, we scale up the allocation of financial resources to foreign trade enterprises to ensure their funding needs can be met. 

Second, we prioritize the development of medium, small, and micro foreign trade enterprises. They are significant contributors to China's exports, so we rely on fin-tech to handpick eligible enterprises with export competitiveness as the candidates of our support programs. 

Third, we mainly keep a close watch on the development of the new mode of foreign trade as we render financial support. New foreign trade modes are a new driving force. Such new modes as the centralized procurement, overseas warehouses and cross-border e-commerce pose challenges to financial institutions. Mortgages, a traditional financing means, can hardly meet the funding needs of new foreign trade modes. This requires us to keep innovating products. 

Forth, to prop up foreign trade, we must reinforce its foundations to sharpen the edges of our foreign trade commodities in the global market and strengthen the foreign trade industry. In addition, we have paid extra attention to supporting the development of the foreign trade industry and promoting the quality and efficiency of both upstream and downstream of the foreign trade industry.

The four aforementioned endeavors have given full play to the role of policy-backed finance in bolstering the high-quality development of foreign trade. But, of course, some reporters may ask, what is the difference between policy-backed finance and commercial finance in supporting foreign trade? Just now Mr. Guo said that foreign trade is not a franchise business and policy-backed finance has two characteristics in supporting foreign trade:

First, policy-backed financial support tends to come when foreign trade companies face difficulties. The more dire the situation they face is, the more we need to provide support. So, I think banks can provide solid support for foreign trade enterprises when they are in straits amid an uncertain market.

Second, we have maintained good cooperation with industrial partners. Through industrial collaboration, we can integrate the strength of policy-backed finance and commercial finance. For example, we now support small and micro-sized foreign trade enterprises to turn to on-lending and sign on-lending deals with commercial, financial institutions. Since commercial, financial institutions have many outlets and have built close contact and relationship with many small and micro-sized enterprises, we work with them to provide financial support for such enterprises.

Just now, a reporter asked whether such support is a subsidy. What is a subsidy? According to the definition of the WTO, first, it depends on whether the financial resources provided by financial institutions are indistinguishable or whether financial institutions only provide financial credit support for a particular type of enterprise, a specific sector, or a particular type of products. Second, whether the loan interest rate is far lower than the market average level. According to the definition, the financing support we provide to foreign trade enterprises is by no means a subsidy. Chinese policy banks, especially official export credit institutions, provide support to foreign trade enterprises in the same vein as their foreign counterparts and in accordance with international practice.

The enterprises we support do not belong to a particular type or a particular sector. We support both large and small and medium-sized enterprises; we support both Chinese and foreign-funded enterprises without discrimination. We offer interest rates in line with market principles. Export and import banks also get capital from the financial market. Our financing cost is not low, roughly the same as the bond rates of the ICBC and the CCB in the financial market. We ensure our business covers the cost and runs with a low-profit margin. Under such circumstances, we will not provide subsidies to foreign trade enterprises at interest rates much lower than the market average. This is my answer. Thank you.

Xinhua News Agency:

Just now, Mr. Guo mentioned the need to regulate the third pillar endowment insurance development. You have repeatedly stressed that the insurance industry should stick to its nature of being a means of protection from financial losses. What will the CBIRC do to maintain insurance as a means of protection and bring it into play in the national social security system and pension financial services? Thank you.

Guo Shuqing:

There are two colleagues from insurance companies. I think they can give you a more detailed answer. Let me say something briefly.

China's financial industry grew very fast. We had only about 4 trillion yuan in financial assets in 1990. The figure has exceeded 370 trillion, and bancassurance accounts for the majority. Especially over the last 30 years, the industry has developed very fast at a fantastic speed. Despite some problems, we have not had a full-blown financial crisis, thanks to the system of socialism with Chinese characteristics, the strong leadership of the Communist Party of China, and the China program and the Chinese system in the financial sector. When it comes to endowment insurance, commercial old-age insurance, medical insurance, and health insurance develop very fast. Compared with European and American countries, however, the development of our insurance and banking sector still lags behind. Our total banking assets rank first in the world, surpassing Europe and the United States, and our insurance volume ranks second in the world. However, the depth and density of our insurance are below the world average level, especially the level of developed countries. We have worked hard to develop endowment insurance. You mentioned the three pillars of endowment insurance: basic old-age insurance, corporate annuities as supplementary insurance, and commercial old-age insurance as the third pillar insurance.

In comparison, the third pillar of insurance lags behind the other two pillars and calls for a boost. Since last year, we have taken some measures and made headway, but we can't be too hasty because we have to guard against risks. In this regard, we proceed with the policy laid down by the financial commission of the State Council -- "Jogging with short steps and making gradual progress." Mr. Bai Tao, take the floor, please.

Bai Tao:

Thank you, Mr. Guo. Thank you for your questions. Social security concerns thousands of households, the interests and the well-being of every people, and the long-term stability of our country. The insurance industry can function as a "shock absorber" for the economy and a "stabilizer" for society. We have always stuck to the nature of insurance to protect from financial loss, which is an essential requirement set forth by the CPC Central Committee and the State Council. We have participated in developing the social security system in a comprehensive and multilevel way and tried to build an excellent social security net for the better lives of the people.

The life insurer owned by China Life Insurance (Group) Company is a triple-listed company, and its life insurance products and services cover the whole life cycle of people, including medical support, healthcare, elderly care, education, accidents, and so on. The property insurer's support services against risks cover urban and rural regions, companies and individuals, as well as all fields such as property safety and accident prevention. Our life and property insurance have provided nearly 540 trillion yuan of protection against risks for the whole society, offering services for over 800 million clients. We have given full play to the company's advantages, such as its specialized services, widespread networks, technological capacity, and professional personnel. One of the most important strengths of the company is its huge sales network, and we have made full use of the advantages in these aspects and provided efficient services for social security. For example, in terms of critical illness insurance, we have carried out more than 210 projects and offered services for some 350 million urban and rural residents. We also established "one-stop" connections with over 30,000 hospitals so as to gradually resolve the difficulty of payment settlement for medical treatment incurred outside the provincial-level administrative area where the patient's medical insurance is registered. In addition, for supplementary medical insurance, we have offered services for over 91 million clients so far.

Regarding the "third pillar" of China's pension system you just said, Mr. Guo also mentioned that there is a relatively big gap on this issue between China and Western countries. I'll add more information in this regard. In terms of the development of the "first pillar," we have given full play to our role as China's biggest pension insurance company and provided nearly 30 billion yuan of services to social security funds. In terms of the "second pillar," China Life has made full use of its function as a professional pension insurance company, providing management services for occupational pension in 32 coordination regions and providing services for nearly 30,000 companies for company annuity. Currently, the total amount of company annuity and occupational pension that are managed by us amounted to 1.2 trillion yuan, and we have been working to maintain and increase the value of pension funds for clients. As for the "third pillar," we proactively rolled out long-term care insurance for over 23 million people. I'll add another piece of information. Our life insurer has undertaken over 52 million pieces of insurance business that are associated with elderly care, and the total amount of reserve has reached 1.7 trillion yuan, which can provide fund reserve for pensions of our clients.

In addition, another aspect that draws wide attention is our contribution to the improvement of the health support system. We have fully leveraged insurance funds’ character of the long cyclical period, set up a "Grand Pension Fund," and invested in a group of elderly care institutions in South, North, East, and Southwest China. Currently, these institutions started to operate and provide multi-layered elderly care services in retirement homes, communities as well as the homes of the elderly themselves. Besides, based on the need of the health management, we established a "Grand Health Fund" and invested in over 40 companies. We have integrated service resources concerning health care, medicines, and those in hospitals, and provided health management services for our clients.

In conclusion, China Life will continue carrying out the decisions and deployments being made by the CPC Central Committee and the State Council, comprehensively strengthen capacity building, and further give full play to the role of insurance as a "shock absorber" for the national economy and a "stabilizer" for society. We will also make all efforts to develop a social security system that ensures people's basic needs and is inclusive and diversified so as to make the CPC Central Committee be assured and people satisfied. Thank you.

Bloomberg:

I have two questions. Many European countries have rolled out measures to sanction Russia recently. How will this affect China's financial institutions? Will China follow suit with similar financial sanctions against Russian banks? Secondly, can you update some of the latest progress of the rectification of Ant Group and other fin-tech platforms? What are the next steps? Thank you.

Guo Shuqing:

Regarding your first question, we have paid great attention to the recent armed conflict, or war, between Russia and Ukraine. The Ministry of Foreign Affairs has fully explained China's take on the issue, and our international policies remain consistent. We don't support financial sanctions, especially those proposed unilaterally. This is because such sanctions do not have good effects or much legal basis. We won't join such sanctions and will continue the normal economic, trading, and financial activities with relevant parties. As for how these sanctions will affect China's economy and finance, the impact so far is not clear, and the situation requires further observation. Nevertheless, we believe that, in general, there will not be much impact in the future, for our economy and finance are fairly steady and resilient.

In terms of the second question, not long ago, a special report was released to introduce the situation regarding the rectification of 14 internet platforms that are associated with financial businesses, such as Ant Group. Led by the People's Bank of China, three government bodies, including the CBIRC, the China Securities Regulatory Commission and the State Administration of Foreign Exchange have launched the rectification work since 2020. The rectification has been going well in general. The financial business offered by these platforms is innovative to a certain extent and was not supervised in the past. It takes some time to bring them under supervision. There are many problems during the rectification process, such as how the enterprises and administrative departments identify or certify these products, personal data and privacy protection, and the safeguard of business information and trade secrets, to name a few. These problems concern various aspects and are very complicated, but in general, we are confident in our ability to implement the rectification work well. 

Yicai:

I have a question for Mr. Guo, and this is also a hot issue for many stock investors. In recent years, the stock price of large-scale banks has remained comparatively low, and they have a low price-to-book (P/B) ratio. What do you think of this issue? Will there be any measure taken next to make the stock price of these banks truly reflect its value? Thank you.

Guo Shuqing:

I'd like to invite Mr. Tian Guoli, chairman of the CCB, to take your questions. The CCB is the first among China's four big banks to be listed, and it has done a lot of research and analysis on this issue. Mr. Tian will have the floor.

Tian Guoli:

Thank you for your questions. This issue has attracted many stock investors' attention. To put it precisely, since the subprime mortgage crisis in 2008, investors have been holding a less favorable opinion of the business models of traditional commercial banks. Glories of the past no longer exist, and their P/B ratio dropped from over 2 to less than 1. Under this situation, China and the rest of the world have been closely connected, and to a certain extent, finance has become a business that knows no borders. As for the actual market value of Chinese-funded banks, their average P/B ratio of A-share basically stands at 0.66, and that of H-share is 0.47, higher than Japan's 0.44 and lower than Europe's 0.72 and 1.42 of the U.S. Therefore, what I want to say is that this is actually a problem of how stock investors view traditional finance. For the investment itself, I think this is still lucrative. Take CCB, for example. Since it was listed in 2005, CCB has paid more than 900 billion yuan in dividends. In 2019 and 2016, the dividend yield of A-share reached 4.48% and 5.05%, and that of H-share hit 5.66% and 6.09%. Large-scale banks are not suitable for short-term investment. However, in the long run, our dividend yield has far exceeded that of other financial products, meanwhile, shareholders can have the opportunity to make a profit after holding our stocks. As for the issue of stock price, we still need to keep working on the matter. Despite our weaknesses, there are also aspects of our work that the public is not familiar with. For example, CCB has been working to promote new finance. In fact, CCB has transformed. Using an Internet-based thinking model, we have set up 520,000 inclusive financing facilities in about 80% to 90% of villages across China in a bid to provide financing services for rural residents. We have completely applied new platforms and internet-based logic, and our services have covered almost all villages. The future market potential is huge.

The CCB also excels in fintech. Now, CCB's fintech not only provides system construction for CCB itself but also offers support in system construction for its peers. It is increasingly market-oriented. Now, it is delivering results. I hope that people will pay attention to these new moves by CCB. I believe that, with the help of a positive outlook, this will bring a handsome income to the shareholders. Thank you.

Cover News:

According to data released by the CBIRC, China's shadow banking sector shrank by 4.2 trillion yuan last year. What is the current size of shadow banks? What new measures will the CBIRC take to continue dismantling shadow banks? Thank you.

Guo Shuqing:

Shadow banking was once a serious financial risk for China, which peaked in 2016. Around 25 trillion yuan's worth of risky shadow banks were dismantled in the past five years, but there is still about 29 trillion yuan. The so-called risky shadow banks actually provide loan products, which were also referred to as "quasi-credit" products by industry insiders. There are also other financial products, such as entrusted loans and WMPs, that are not strictly regulated as bank credit. Overall, these risks are completely manageable. In the future, related risks will be gradually resolved from high to low. Take P2P, for example. During the peak period, the transaction volume of P2P reached 2 to 3 trillion yuan each year. Now, the total funds of lenders that have not yet been repaid only stand at over 490 billion yuan. The risk of shadow banks has been greatly reduced.

Of course, as a supervisory department, we will never cease being vigilant because, with the development of the scientific, technological, economic, and financial sectors, there are still many fake "new financial products" and "innovative products." Many are deceptive, even fraudulent products with great risk. So, the CBIRC and all sectors of society should all remain on high alert. Thank you.

The Paper:

According to a meeting of the Political Bureau of the Communist Party of China Central Committee held on Feb. 25, supervision of leading officials and leading groups in the financial sector should be strengthened, and efforts will be made to tackle typical problems such as violations of the central Party leadership's eight-point decision on improving work conduct and the "revolving door." For the CBIRC, what will be done in this regard? Thank you.

Guo Shuqing:

Thanks for your question. All of us here are heads of financial intuitions. The eighth round of disciplinary inspection launched by the CPC Central Committee uncovered various problems in more than 20 institutions in the financial sector, some of which are very serious and need our close attention. I believe that the whole of society is also highly concerned. We will rectify these mistakes in a serious manner, especially violations of the central Party leadership's eight-point decision on improving work conduct that are intolerable. It has been nearly 10n years since the eight-point decision was put forward after the 18th National Congress in 2012. It is very wrong to make such mistakes, and we must resolutely correct them.

You mentioned the "revolving door" problem. There are officials who have left their posts in financial watchdogs, such as in PBOC, CBIRC, CSRC, and SAFE, and then take up jobs in the financial sector or with companies. The key is that there needs to be a clear system to regulate it. We need to watch out as to whether there are direct connections between their two jobs and figure out their specific original and current posts, whether their original government job will make them have improper influence or generate illegitimate benefits for the current job, and whether they have any wrongdoing during their term in the government. We need to investigate and regulate. Earlier, we made some regulations. A former CBIRC employee cannot directly work in an institution that has been regulated by him or has close relations with him. There is a cooling-off period and waiting period after the confidentiality agreement expires. We believe that the system will be more standardized and more rigorous in the future to solve this problem. Thank you.

CRNTT:

It has been three years since the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) was issued. Does the financial sector have any new explorations and breakthroughs in supporting the development of the GBA? Thank you.

Guo Shuqing:

We have been exploring. Mr. Wang is working in Hong Kong; he knows better than us. Mr. Wang, please.

Wang Sidong:

Thank you, Mr. Guo, and this journalist. The construction of the GBA is a major national strategy planned, deployed, and promoted by General Secretary Xi Jinping, and has achieved remarkable results in recent years. The GBA has strong economic vitality and a developed insurance market. There are more than 160 insurance companies in Hong Kong. The depth and density of insurance in Hong Kong rank second in the world. Last year's data has not yet been released. In 2020, Hong Kong's total gross premiums were HK$581.3 billion. There are 25 insurance companies in Macao, and its premium income in 2020 was 26.3 billion patacas. Guangdong is a province that generates huge insurance on the Chinese mainland. Last year, its premium income was 558 billion yuan, accounting for 12.4% of the national market. In May last year, the PBOC and other three ministries and commissions issued a financial support guideline for the development of the GBA, which greatly promoted the interconnection of financial markets and financial infrastructures in the GBA. In September last year, Mr. Guo conducted in-depth research of the GBA and put forward requirements and hopes for the high-quality development of the insurance industry in the GBA. China Taiping is headquartered in Hong Kong. Its headquarters, nine major subsidiaries, and 172 branches are located in the GBA. In 2021, its premiums in the GBA accounted for 23% of the group's total premiums. The GBA has become a strategic highland for the high-quality development of China Taiping.  

In 2019, we took the lead in publishing a white paper on China Taiping's participation in the development of the GBA in Hong Kong. With a focus on serving the GBA, we innovated insurance products to promote the interconnection of residents in the GBA and ensure people's livelihoods in Hong Kong and Macao. For example, we innovatively launched cross-border auto insurance for crossing the Hong Kong-Zhuhai-Macao Bridge and established a three-region integrated insurance and compensation mechanism for Guangdong, Hong Kong, and Macao, enabling policyholders to buy insurance of the three places in either of them. In addition, we have also launched exclusive critical illness insurance in the GBA, as well as cross-border medical insurance to provide insurance services for residents of the GBA. In addition, we have cooperated with the Macao SAR government to establish a catastrophe insurance system to provide catastrophe insurance services for small and medium-sized enterprises in Macao.

We also give play to the advantages of the long-term investment of insurance funds to provide financial support for the GBA construction. For example, we launched a HK$10-billion-worth Greater Bay Area Homeland Development Fund together with China Merchants Group, and China Resources Group. We established a 6.5-billion-yuan equity fund of China Taiping Medical Health Industry in Shenzhen at the end of last year. The current investment projects totaled about 50 billion yuan in the area. Last December, we also launched the first high-quality development forum on the insurance industry in the GBA, promoting the international exchanges on the insurance industry in the area.

During the 14th Five-Year-Plan period, we will continue our focus on Hong Kong and Macao and invest in development of the GBA. A three-year action plan was formulated to serve the GBA. We hope to reflect the effects of the insurance industry's services for the construction through implementing the specific projects there. First, pressing ahead with the policies of allowing "Macao vehicles travelling to Guangdong" and "Hong Kong vehicles travelling to Guangdong;" second, cooperating with regulatory departments to conduct cross-border insurance connections; third, participating in and boosting the construction of cross-border insurance service centers. In addition, we will also set up elderly care communities in the GBA and build medical and health scientific industrial park zones of China Taiping. Furthermore, we will actively intensify the function of international risk management centers in Hong Kong and participate in the development of the Northern Metropolis Development Strategy of Hong Kong and set up the Taiping-Hong Kong insurance and scientific innovation fund. Furthermore, we have recently discussed with the Macao Special Administrative Region government the coordinated operation of the Guangdong-Macao Traditional Chinese Medicine Science and Technology Industrial Park in Hengqin.

In addition, we will introduce more global quality resources to the GBA. Last year, we made meaningful attempts, which actively promoted the Belt and Road Initiative, dual circulation, and better the mechanism for Hong Kong and Macao to integrate into our overall development plan. So we are full of confidence in pursuing high-quality development there. Thank you!

CNBC: 

I have two questions. First, what is the difference between the fund-raising demand of micro, small and medium-sized enterprises (MSMEs) this year and previous years? What are your considerations? Second, what are CBIRC's considerations and opportunities for foreign investment in the virtuous circle and high-quality development of economy and finance?

Guo Shuqing:

Due to time constraints, let me give you a brief answer. We all know that the financing of MSMEs is a global issue while it was well resolved in China. When talking about the 120 million enterprises, we can see that most of them are micro and small enterprises or self-employed individuals. Data from the Ministry of Industry and Information Technology, All-China Federation of Industry and Commerce as well as Association of Small and Medium Enterprises showed that small and micro-enterprises accounted for about 30% in all those got bank loans. At the same time, some figures are higher or lower. In general, approximately 30% of the market entities can get bank loans, which is an outstanding achievement. However, we are not satisfied with this. We will continue to make good use of such means as science, technology, and digitization to better cultivate a customer-centered culture, provide good services, and mitigate difficulties enterprises face in accessing affordable financing.

Regarding the issue of foreign investment, our opening-up policies remain consistent. Since the 19th CPC National Congress, the CBIRC has adopted more than 50 opening-up policies and measures in financial sector. Among them, 34 are targeting the banking and insurance industries, with some being made into regulations. Related laws were amended accordingly and were put into practice. Though some were still under revision, generally, all these policies were carried out. As a result, more and more institutions approved by us started their operation here, such as the foreign-owned insurance companies, foreign shareholding banks, and wealth management companies, among which are internationally renowned institutions. Thank you!

Shou Xiaoli:

We can only take two more questions due to time constraints.

21st Century Business Herald:

Regarding the reforms of the provincial rural credit unions, we know that the Zhejiang Rural Credit Union has been transformed into Zhejiang Rural Commercial Union Bank. What progress has been made in other provinces? Is there any difference in the direction of reforms? Thank you.

Guo Shuqing:

The direction of reforms is the same: establishing a modern enterprise financial system. This applies to small and medium-sized banks, rural credit cooperatives, and provincial- and county-level credit unions. The specific organizational forms may vary from province to province. Some may choose to invest in its member institutions and becomes their largest shareholder, such as the case of the Zhejiang Rural Commercial Union Bank. With provinces each worked out their own plan, the CBIRC is working to guide and improve on them. We noted that some provinces proposed a double-layer structure – provincial holding company holds stakes in county-level credit unions. There are also plans of a three-tier structure and a type featuring several agricultural and commercial banks and business segments in a single province. In addition, a very small number of provincial rural credit unions were small. They were reformed into two or three rural commercial banks and rural credit cooperatives.

In a word, the forms are various. But there is a common requirement that local CPC committees and governments strengthen their management in this regard. We have made the policies clear: We will respect opinions from the locals while strengthening the Party's overall leadership; we will proceed from reality and strengthen the requirements for professional personnel; a professional manager market will be established to let professional people do professional things; and basic qualifications will be required for the management teams. What's more, we will regulate the corporate governance system strictly according to the law. The system should consist of shareholders' meetings, boards of directors, boards of supervisors, and senior management. And more importantly, we need to learn from the past and conduct a strict review on the shareholders to avoid practices such as one shareholder acquiring a controlling stake, misappropriation of funds through related-party transactions, or directly using bank funds and insurance premiums to increase leverage. In a word, the reform of rural credit cooperatives is progressing well, and yet we still need more time. Thank you.

China News Service:

In recent years, there have been two phenomena taking place. On the one hand, excessive credit funds have flowed from banks into "big clients," including big cities, big enterprises, big projects, and some specific sectors. In contrast, credit to private enterprises and small and microbusinesses have been squeezed. But on the other hand, banks have made a big push to provide targeted inclusive loans to small and micro businesses, increasing the risk of non-performing loans and squeezing profits, which influenced shareholder's returns. I would like to know Mr. Guo's point of view regarding these two phenomena. Thank you.

Guo Shuqing:

There is indeed a big problem in banking services of excessive credit funds flowing into "big clients," especially into the real estate sector. We are now reflecting carefully on the problem and summing up experience and lessons. I think my colleagues here also know this too well. Both banks and insurance companies have suffered severe losses due to investments in high-risk enterprises and conglomerates. That's why we should improve our work in this regard.

On the other hand, while big banks and financial institutions were prompted to make their services accessible to small and micro businesses, they have begun to compete with local medium and small banks and financial institutions and squeeze their living space. Through our field trips to different places, we have heard a lot of complaints from rural credit cooperatives, rural commercial banks, and village banks, saying that the ICBC went too far by grabbing clients from them. And the CCB did this, too. Some small insurance companies also blamed big insurance companies, such as China Life and China Taiping. There were various complaints in this regard. Mr. Tian just said that the CCB had agents at more than 500,000 villages. With an iPad and a commission of 1,000 to 2,000 yuan, these agents can provide villagers with essential financial services, including depositing or withdrawing money and transaction services. So we have seen that competition is very stiff. With the development of digitalization, big banks also face the pressure to survive. The number of physical bank outlets nationwide has declined for three consecutive years. In the future, the whole banking system and its business models will embrace profound changes, and so will the insurance industry. Therefore, all we can do is to earnestly study the situations, follow the prevailing trend, keep abreast of the times, constantly promote supply-side structural reforms and improve the structures of banks and insurance companies. Thank you.

Tian Guoli:

I would like to add something here. The inclusive loans provided by the CCB are less than 800,000 yuan on average, compared to over 2 million yuan of loans provided by medium, small and micro banks. There used to be no financial services targeting clients of loans less than 800,000 yuan. Why did I stress "New Finance?" In fact, both the physical outlets and traditional services of the CCB are now declining. Recently, it was reported in Shanghai that people from across the country can now receive services such as issuing certificates and licenses at the CCB's Shanghai outlets without the hassle of travelling back to their hometowns. Another point is that people don't know much about the share price of the CCB. That may result from our lack of publicity and communication with our friends from the media. Here, I ask you a favor to help popularize the relevant information. 

Shou Xiaoli:

Thank you, Mr. Guo. And thanks to our speakers as well as friends from the press for joining us. Your hard work is greatly appreciated. That's all for today's press conference. Goodbye.

Translated and edited by Zhang Rui, Huang Shan, Mi Xingang, Wang Wei, He Shan, Liu Sitong, Zhu Bochen, Wang Yanfang, Zhang Tingting, Li Huiru, He Shan, Li Xiao, Wang Qian, Zhang Liying, Yuan Fang, Gong Yingchun, Yang Xi, Wang Yiming, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Wang Wentao, minister of commerce

Wang Shouwen, vice minister of commerce and deputy China international trade representative

Sheng Qiuping, assistant minister of commerce

Chairperson:

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

Date: 

March 1, 2022

Xing Huina:

Friends from the media, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are delighted to be joined by Mr. Wang Wentao, minister of commerce, who will introduce China's efforts to pursue stable and high-quality commerce development, and answer your questions. Also present at the press conference today are Mr. Wang Shouwen, vice minister of commerce and deputy China international trade representative, and Mr. Sheng Qiuping, assistant minister of commerce. 

Now, I will give the floor to Mr. Wang Wentao.

Wang Wentao:

Thank you, Ms. Xing. Ladies and gentlemen, friends from the media, I am glad to meet you here, and thank you for your constant interest and support regarding China's commerce development. 2021 was a landmark year in the history of our Party and our country. Faced with the complex domestic and international situation, as well as multiple risks and challenges, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, we focused on the overarching task of fostering a new development paradigm and performed the important role of commerce development in three aspects. I would like to explain the three aspects. First, commerce development is an important part of the domestic economy; second, commerce development is an important juncture connecting domestic and international markets; and third, commerce development is important to the new development paradigm. Last year, China's commerce development remained stable and exceeded expectations. Specifically, domestic consumption continued its steady recovery, and foreign trade became a highlight of economic growth, hitting a record high in terms of both volume and international market share. Utilized foreign investment grew rapidly, outbound investment remained stable, and multilateral and bilateral economic and trade cooperation achieved new breakthroughs.

This year, we will continue to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the guiding principles of the 19th CPC National Congress and plenary sessions of the 19th CPC Central Committee, carry out the decisions of the recent Central Economic Work Conference, pursue progress while ensuring stability, perform the important role of commerce development in three aspects, firmly implement the strategy of boosting domestic demand, promote continued consumption recovery, stabilize the overall performance of foreign trade and foreign investment, open wider to a high standard, make every effort to maintain steady commerce development, and greet the convening of the 20th CPC National Congress with concrete actions.

Next, my colleagues and I would like to answer your questions. Thank you.

Xing Huina:

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

CCTV:

Consumption is the main driving force behind economic growth. Maintaining the stability of consumption is essential to keeping the fundamentals of the economy stable. Currently, sporadic COVID-19 cases have put great pressure on consumption recovery. How do you view the present consumption situation? What measures will be taken to promote the steady recovery of consumption? Thank you.

Wang Wentao:

Thank you for your questions. As we know, consumption is the main force driving economic growth and directly reflects people's demands for a better life. As I mentioned, last year, consumption continued its steady recovery, with total annual retail sales of consumer goods rising 12.5%. In particular, the online retail sales of goods accounted for 24.5% of the total. In addition, as you may have experienced in your daily life, smart, green and health consumption all grew rapidly. Consumption returned to its place as the primary driving force behind economic growth.

However, we also noticed that there have been some problems with consumption since the fourth quarter last year. Downward pressure mounted, with the growth of consumer goods retail sales registering 4.9%, 3.9% and 1.7% in October, November and December, respectively. In general, we feel that the downward pressure on consumption is huge and we face challenges in keeping consumption stable. We will fully enforce the decisions of the CPC Central Committee and the State Council, firmly implement the strategy of boosting domestic demand, balance COVID-19 measures and consumption promotion, make every effort to advance continuous consumption recovery and upgrading, and enhance the role of consumption in economic growth. Going forward, we will do the following:

First, we will fully implement policies that boost the vitality of consumption market entities. Consumption in areas especially related to people's everyday lives and involving gatherings, such as catering, accommodation and retail, has been particularly affected by the pandemic, and these sectors have faced greater difficulties. In particular, small- and medium-sized enterprises (SMEs) face great pressure on their survival. In line with the decisions of the State Council, 14 ministries jointly introduced policies to support the recovery and development of the service industry. We have released strong, targeted bail-out policies for these businesses, especially micro, small and medium-sized enterprises (MSMEs).

Second, we will come up with innovative ideas and approaches to help consumption promotion activities achieve greater success. Last year, commerce departments at all levels organized a series of activities to promote consumption, such as the national consumption promotion month, the online shopping festival for the Chinese New Year, online shopping promotions to boost brand and quality consumption, and time-honored brand carnivals. According to our evaluation, these activities played a positive role in promoting consumption. This year, provided that the prevention and control protocols are duly observed, we will summarize the experience and continue organizing consumption promotion activities. For example, tonight we will hold the launch ceremony for the "Consumption Promotion Month 2022." In the coming period, we will hold various consumption promotion activities integrating online and offline channels, such as consumer goods expos, automobile fairs, and household consumption seasons, to keep the consumption of essential goods stable. We will also organize ice and snow-themed consumption promotion activities as the enthusiasm for winter sports is high thanks to the 2022 Beijing Winter Olympics.

Third, we will continue to serve for a better life and create a consumption upgrade platform. In terms of cities, last year, we set the target of developing five international consumption center cities. After a one-year cultivation, we will summarize and improve. Meanwhile, we will continue to promote the high-quality development of pedestrian streets, build demonstration smart business districts and smart stores, and accelerate the construction of 15-minute radius community circle to facilitate people's life. We will also encourage the development of new business forms and models and new scenarios. Last year, I also mentioned that innovations had been made in many places, where featured streets, internet-famous sites, amid other sites, were built. We will support the development of "first-store economy" and "debut economy" in regions where conditions permit, promote new types of consumption such as customization, experience, intelligence, and fashion consumption, and develop green and healthy consumption to better meet people's aspirations for a better life. Thank you. 

The Paper: 

Building a globally oriented network of high-standard free trade zone is an important measure to align with the high-standard international economic and trade rules and promote institutional opening-up. What is the latest progress made by China in implementing the free trade zone upgrading strategy and building a high-standard free trade zone network? What will be the next step to upgrade the building of free trade zones? Thank you. 

Wang Wentao:

Thank you for your questions, and I will answer these questions as well. Your questions involve two aspects: One is about progress, and the other is how to improve next. 

First, through nearly 20 years of efforts, we have made more friends in the field of free trade, and the content of free trade agreements is increasingly rich in substance, and the level has also improved. A globally oriented network of high-standard free trade zones, which is based on the surrounding areas and stimulates the development of Belt and Road countries, is emerging. According to statistics, we have signed 19 free trade agreements with 26 countries and regions, and our trade partners cover Asia, Oceania, Latin America, Europe, and Africa. Our trade volume with free trade zone partners accounts for about 35% of our total trade. In particular, the Regional Comprehensive Economic Partnership (RCEP) took effect on Jan. 1 this year, which drew close attention. It means that the world's most populous free trade zone with the largest economic and trade scale has been officially launched. We also took this opportunity and worked with five other departments to issue guidelines to promote high-quality RCEP implementation, and launched targeted training programs to improve capabilities of enterprises in making use of the RCEP. I also take this opportunity to call for all regions, departments, especially departments in charge of commerce, and some institutions, to help enterprises strengthen training in this regard and help them learn more about the content of RCEP. Meanwhile, we call for enterprises to search online, and relevant information is available on our website. If they still have questions, they can call us or email us, or contact departments in charge of commerce at all levels, including the MOFCOM. We are willing to help enterprises learn more about the agreement and help them make use of the clauses as soon as possible to inject new vitality into their development. As partners of the RCEP gradually cut their tariffs, I hope that enterprises pay attention to clauses on cumulation in the section of the rules of origin. Dividends of the RCEP will be released gradually, and they will get more real money benefits.

The second question is about how to improve next. We will resolutely implement the decisions of the CPC Central Committee and the State Council, and focus on expanding the coverage and improving the quality and efficiency, implement the strategy of upgrading free trade zones, promote better integration of the domestic and international markets and greater complementarity between domestic and global resources to provide institutional guarantee for higher-level opening up and serve the establishment of the new development paradigm. Last year, we formally applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA), which shows our determination and confidence in deepening reforms and opening up and genuine interest in enhancing global cooperation in the digital economy and promoting innovation and sustainable development. China has contacted, communicated, and negotiated with members of the two agreements. We have also taken the initiative to align ourselves with high-standard international economic and trade rules, comprehensively deepen reforms and accelerate institutional opening up.

Meanwhile, we are also working on free trade agreement negotiations, including China-Gulf Cooperation Council (GCC), China-Ecuador, China-Israel, China-Norway and China-Japan-ROK free trade agreements, and have actively promoted the upgrade of free trade agreements, such as the 3.0 version of China-ASEAN (Association of Southeast Asian Nations) free trade agreement. We are also willing to hold discussions with other economies and countries to explore the signing of free trade agreements. We have actively participated in negotiations on new rules of digital economy, environmental protection and other fields to jointly promote regional economic integration and the liberalization and facilitation of trade and investment. Thank you. 

Nikkei:

What progress has there been since China applied to join the CPTPP last September? Some member countries believe that China needs to solve many problems, including issues related to state-owned enterprises, electronic data, and government procurement, in order to join the CPTPP. Could you introduce the specifics as to how the Ministry of Commerce (MOFCOM) negotiates those problems with the CPTPP members? Thank you. 

Wang Shouwen:

Thank you for your questions. China formally applied to join the CPTPP last September, which has drawn great attention from the international community and given rise to positive repercussions in China and abroad. We all believe that China's application for joining the CPTPP is an important opening-up measure in the new era. Before formally applying to join the CPTPP, we conducted full, comprehensive, and in-depth analysis, research, and evaluation of the CPTPP clauses. Based on CPTPP regulations, we sorted out our laws, regulations and reform measures that need to be improved or modified. At present, we are communicating and negotiating with the relevant members in accordance with CPTPP accession procedures.

It is acknowledged that the CPTPP is a high-standard international economic and trade agreement. What I want to point out, in particular, is that the high standard is in line with China's path to deepen reform and expand opening-up. We are also willing to attain the standard of the CPTPP in all respects through actively deepening reform and expanding opening-up. Mr. Wang just mentioned that China has signed many free trade agreements. To join the CPTPP, the efforts to relax market access will be stronger than the existing agreements and practices we have made before. The efforts are conducive to continuing the opening-up and deepening reform and to the high-quality development. At the same time, it will be helpful for the 11 member states of the CPTPP to expand further their market access to the second-largest economy in the world and promote their cooperation with China in goods and services trade, investment, and other sectors.

You mentioned that there are problems. Indeed, the CPTPP covers many sectors, and some of the articles are more complicated and sensitive. However, we believe that the CPTPP is in line with China's general direction of opening-up and reform. For example, the CPTPP rules require state-owned enterprises (SOEs) to compete fairly with other types of companies, which is the core requirement concerning SOEs. This is also in line with the direction of the market-oriented reform of SOEs we pushed for. As independent market entities, SOEs in China operate their business on a commercial basis. They compete fairly with private enterprises and foreign-invested enterprises. And their operations are in line with the market-oriented and law-based principles. Therefore, China is now qualified to fulfill its duties concerning the requirements for SOEs.

You also mentioned the rules and regulations on e-commerce. Pertinent regulations and rules on e-commerce within the CPTPP are quite strict, which are in line with China's efforts in recent years, such as participating in international cooperation on the digital economy, and continuing to optimize the digital business environment. In recent years, it is known that China has adopted three laws: the Data Security Law, the Cybersecurity Law, and the Personal Information Protection Law. Currently, related departments are mulling over supporting rules and regulations, or implementation guidelines, that are related to the three laws. In addition to working on the supporting rules and regulations, we will also consider the standards of the CPTPP, working to meet the requirements of it. Therefore, in terms of all the issues and articles of CPTPP, we are preparing to discuss and negotiate with related member states in detail. President Xi Jinping announced that China would work actively for joining the CPTPP. We are willing to make concert efforts with all parties to further regional trade and economic integration and contribute to regional economic development and global economic recovery. Thank you.

CGTN: 

We know that in 2021, China's foreign trade grew 21.4% to 39.1 trillion yuan. There are reports saying that due to such a high base, China will face greater pressure and challenges in stabilizing foreign trade this year. So, what's your take on that? In addition, would you like to introduce the measures taken by the Ministry of Commerce to ease difficulties for export companies? What are the arrangements for stabilizing industrial chain and supply chain? Thanks. 

Wang Wentao:

Thank you for your questions. I'd like to answer your questions. Your questions are mainly about how to see and how to do.

About how to see, you mentioned that China's foreign trade grew by 21.4% to 39.1 trillion yuan last year, which is in yuan terms. While in U.S. dollar terms, China's foreign trade move up another notch to $6.05 trillion, exceeding $5 and $6 trillion consecutively, with a growth rate of 30%, the highest number since 2010. Net exports of goods and services contributed 20.9% to the economic growth. In the first three quarters of last year, in U.S. dollar terms, the share of China's foreign trade in the global market hit a record high. It reached 15%, the highest since 1958 as a single economy in the world, which injected new impetus to world economic recovery and development. The strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core has been fundamental to the hard-won achievements we made last year. And such achievements could not have been made without the consistent hard work of China's export companies.

You just mentioned that certain reports questioned how China will do this year on such a high base. I believe that not only reports, our research also showed that we will face huge pressures this year, and the situation is quite complicated and serious. The Central Conference on Economic Work pointed out the threefold pressure faced by the Chinese economy in 2022, namely the contraction of demand, supply shocks, and weaker expectations. In terms of demand contraction, repeated resurgences of the COVID-19 pandemic still exist around the world, the global recovery is somewhat shaky, and foreign demands remain uncertain. Certain international organizations, such as IMF and World Bank, have downgraded the global economic growth forecast of 2022. The latest report from WTO signaled a cooling of merchandise trade growth. In terms of supply shocks, we have seen that the supply of raw materials and bulk commodities is still not back on track. In other words, the bottlenecks in the supply chain are still not addressed, which we estimate is also hard to be eased in the short term. In terms of weaker expectations, export companies are still beset by shortages of containers and labor. And the price of raw materials and shipping costs are still relatively high. According to our surveys, in particular, the earning performance of some small and medium-sized export companies is not optimistic, which also shakes their confidence to receive orders.

In addition, some short-term factors influencing the export faded away. We also analyzed that. Last year, China's foreign trade registered a high growth rate attributable to certain short-term factors. For example, more orders were received at home instead of overseas. Factors also include exporting epidemic prevention supplies and the "stay-at-home economy." With such factors fading away, China will face more significant challenges in stabilizing foreign trade this year. Also, you mentioned the high base in your question. China's foreign trade grew by 30% last year, in U.S. dollars terms. The pressure to expand the growth is quite considerable on such a high base. 

In the face of these difficulties and challenges, we have stepped up efforts to implement policies in accordance with the plans of the CPC Central Committee and the State Council, and rolled out multiple measures to stabilize the foreign trade, including special actions of adopting cross-cyclical adjustment measures, diversifying market, ensuring smooth operation of the supply chains for foreign trade, and promoting innovative and high-quality foreign trade. In the first two months, the foreign trade has basically maintained stable, a stable start of the year. We are confident to accomplish the targets and tasks for the whole year and keep the fundamentals of foreign trade and foreign investment stable. Our efforts will focus on the following three aspects:

First, we will implement policies and prepare for policy options for stabilizing foreign trade. We will work with all local governments and departments to implement the Opinions on Further Stabilizing Foreign Trade by Adopting Cross-Cyclical Adjustment Measures released by the State Council at the end of last year. We will fully implement the policies on tax and fee cuts, make full use of measures on finance and insurance to benefit businesses, and make meticulous efforts to adopt measures on facilitating trade in order to help businesses, especially micro, small and medium businesses, secure orders, stabilize market expectations, and expand market. Meanwhile, we will keep a close eye on external demand and foreign trade and enhance monitoring and early warnings for policy options.

Second, we will guarantee the stability and smooth operation of the industrial and supply chains for foreign trade. Due to the impact of the pandemic and regional conflicts, the flow of people and port operations are still impeded, the problems of barriers and disruption in the global industrial and supply chains remain prominent whilst some new problems emerge. We will promote the transformation and upgrading of foreign trade bases, support the steady development of processing trade, foster a new batch of the on-site processing on a pilot basis from trade between border residents, further promote the integration of domestic and foreign trade, and foster trade enterprises fitting in with China's dual circulation development paradigm, where domestic and overseas markets reinforce each other. We will also strengthen international cooperation to facilitate international logistics and settlement, improve the level of trade facilitation, and promote upstream and downstream coordination of industrial and supply chains

Third, we will continue to promote innovative development of foreign trade. In order to promote the steady and high-quality development of foreign trade, enhance its comprehensive competitiveness, we need to give higher priority to innovative development. Last month, the State Council approved the establishment of 27 new comprehensive pilot zones for cross-border e-commerce. Today, the new list of imported goods for cross-border e-commerce retails has been officially implemented. The goods on the list have been further increased with categories expanded. Meanwhile, we will strength our support for the development of overseas warehouses, build and improve overseas warehouse networks, promote the construction of overseas intelligent logistics platforms, cultivate a number of offshore trading centers in cities (regions), develop and expand new forms and models of foreign trade, and promote the development of trade at a higher level and with higher quality. We will also develop demonstration zones for the innovative development of trade in services, create a number of digital pilot zones for global trade, and develop green trade. Thank you.

Southern Metropolis Daily: 

The Belt and Road Initiative (BRI) is making continuous progress. What new plans will the MOFCOM make this year to promote the initiative in order to foster a new pattern of development? Thank you.

Sheng Qiuping:

Thank you for your question. In the past eight years since the BRI was introduced, China has worked with those countries concerned to uphold the principle of extensive consultation, joint contribution, and shared benefits, and made substantial progress in promoting hard connectivity, soft connectivity, and connectivity of the heart. So far, the BRI has become an international public goods as well as a platform for international cooperation, winning more friends.

Last year, thanks to the joint efforts of all parties, economic and trade cooperation under the BRI continued to deepen and deliver tangible results by overcoming the pandemic and other difficulties, injecting new momentum into global opening-up and cooperation as well as world economic recovery. China's trade with countries along the Belt and Road reached $1.8 trillion, up 32.4% year on year. China's direct investment in these countries stood at $21.46 billion, an increase of 15.3%. China attracted $11.25 billion in foreign investment from these countries, reflecting a 36% rise. All the growth rates are higher than the overall growth. The turnover of China's contracted projects in these countries reached $89.7 billion, accounting for 57.9% of the total.

This year, we will put into practice the guiding principles from President Xi Jinping's speech at the third symposium on the development of the Belt and Road Initiative, precisely grasp the overall requirements for developing the BRI under the new circumstances, strike a balance between rural and urban development, between regional development, between economic and social development, between human and natural harmonious development, and between domestic development and opening-up, and make solid progress in high-quality development of the BRI. We will focus on the following five aspects:

First, we will continue to consolidate fundamentals for cooperation. The BRI is a way of cooperate. Trade and investment cooperation is an important part of the initiative. We will further tap the potential of trade with countries along the Belt and Road, and encourage more imports of quality goods. We will continue to expand three-party and multi-party market cooperation to promote smooth connectivity between industrial and supply chains. We will speed up building a network of free trade zones covering the Belt and Road Initiative, and promote trade and investment liberalization and facilitation.

Second, we will steadily expand new areas of cooperation. A new round of scientific and technological revolution, as well as industrial transformation, is gaining momentum, and countries are more willing to cooperate in the digital economy, green and low-carbon fields. We will actively foster new growth areas for cooperation, deepen the development of Silk Road e-commerce, enhance cooperation in digital trade and new infrastructure, and boost the building of a digital cooperation paradigm. We will also promote green development in outbound investment and cooperation, and strengthen cooperation in areas including new energy, energy conservation, environmental protection, and green infrastructure.

Third, we will build high-quality landmark projects. Over the years, a number of major cooperation projects and livelihood projects have achieved effective results, bringing tangible benefits to the economic development of host countries and improvements in people's livelihoods. For example, the overseas economic and trade cooperation zones set up by Chinese enterprises have paid a total of $6.6 billion in taxes and fees to host countries and created 392,000 local jobs. Next, we will focus on agriculture, poverty reduction, sanitation, health and other fields, and prioritize the construction of more "small and beautiful" projects to enhance the sense of gain among people in host countries. At the same time, we will actively push for the China-Europe rail cargo transport to develop jointly with various cooperation zones and to integrate with new business models such as cross-border e-commerce and overseas warehouses. 

Fourth, we will allow mechanisms and platforms to play a greater role. Since the beginning of this year, the Belt and Road economic and trade cooperation mechanism has been continuously improved. We have established working groups for unimpeded trade with 17 countries, established investment cooperation working groups with 46 countries and regions, and established cooperation mechanisms for such areas as e-commerce and service trade with many countries. We will continue to diversify such cooperation mechanisms, continue to hold major international and regional expos, improve the standard of economic and trade exchanges and cooperation at all levels, and provide better services and guarantees for the joint building of the Belt and Road Initiative (BRI).

Fifth, we will comprehensively strengthen risk prevention and control. Currently, the pandemic is still raging worldwide, geopolitical risks are increasing, and unilateralism and protectionism are intensifying, meaning the international environment for the joint pursuit of the BRI is becoming increasingly complicated. We will pay close attention to the global pandemic situation, promote international anti-pandemic cooperation, and strengthen various risk assessments, monitoring and early warnings. We will also guide enterprises to refine their work plans, standardize their overseas business operations, advance trade and investment cooperation and project construction in a steady and orderly manner, and ensure the safety of personnel and projects of Chinese enterprises.

In short, the MOFCOM will perform the important role of commerce development in three aspects, further promote the high-quality development of the Belt and Road, comprehensively promote a higher level of opening-up, and fully serve the building of a new development paradigm. Thank you.

Yicai:

This January, China's foreign investment increased by 11.6% year on year, demonstrating that China's attractiveness to foreign investment has not diminished under external uncertainties such as repeated coronavirus flare-ups overseas. What are your predictions for China's foreign investment this year? And going forward, what measures will be taken to stabilize the scale and optimize the structure of foreign investment? Thank you.

Wang Wentao:

Regarding the issue of foreign investment, I would like to answer your questions. Over the past two years, due to the impact of the pandemic and adjustments to the global industrial chain and supply chain structure, global cross-border investment has fluctuated greatly. However, China's utilization of foreign investment has maintained steady growth. China has constantly been an attractive destination for foreign investment. In 2021, China's foreign investment hit a new record high, breaking the 1 trillion yuan mark for the first time and reaching 1.15 trillion yuan. This is the first time in the past decade that we achieved double-digit growth, with a growth rate of 14.9%. In terms of U.S. dollars, this figure is $173.5 billion, with a growth rate of 20.2%, and a two-year average of 12.1%. The proportion of foreign investment in high-tech industries exceeded 30% for the first time. The situation of this January was stable and the momentum was relatively good. The actual use of foreign investment in the country maintained double-digit growth, with a growth rate of 11.6%. The Central Economic Work Conference emphasized increasing efforts to attract foreign investment, and we will thoroughly implement this, mainly by further expanding high-level opening-up and further optimizing the business environment. The main direction of the efforts will be in two aspects: one is maintaining stability and the other is promoting excellence. Next, I would like to talk about these two aspects.

The first is maintaining stability, that is, stabilizing the stock of foreign investment and increasing the amount. We will further ease market access for foreign capital. In recent years, we have continued to relax market access, and have reduced negative lists for foreign investment access across the country and in pilot free trade zones for five consecutive years. Last year, we released the negative list of cross-border trade in services for the Hainan Free Trade Port. In addition, we must give full play to the role of some platforms for opening-up in attracting investment. These platforms include 21 pilot free trade zones, the Hainan Free Trade Port, 230 national economic development zones, and the "1+4" localities for showcasing and piloting wider opening-up in service sector. There are also some platforms, such as major expos including the China International Fair for Investment and Trade (CIFIT) and the China International Small and Medium Enterprises Fair (CISMEF), to promote business matchmaking, and attract the signing of more project contracts. We will further strengthen service guarantees. We have a special task force for key foreign-funded projects under the foreign trade and foreign investment coordination mechanism, which is a special team serving enterprises. With this special team, services are more efficient and precise. Last year, we coordinated and resolved more than 1,000 issues reported by foreign-funded enterprises and projects, especially issues we identified as being shared by numerous foreign-funded enterprises, which was welcomed by foreign-funded enterprises. For example, we promoted the introduction of policies to ensure that foreign-funded enterprises can participate in government procurement on an equal footing. Last year, foreign-funded enterprises reported that the relevant ministries and commissions had solved this issue. The special task force will continue to boost services to help enterprises stabilize investment, production and operation, and promote the early signing of projects, early start of production and early reaching of production goals. We will continue to support the promotion of investment everywhere. General Secretary Xi Jinping made a request to the China International Import Expo (CIIE), emphasizing turning exhibits into commodities, and exhibitors into investors. With so many exhibitors coming, how can exhibitors be turned into investors? This presents us with a task. Last year, we used the platform of the CIIE to launch a series of roadshow activities in various regions, the first stop being Sichuan province. I attended the CIIE's Sichuan roadshow event, and saw that 78 exhibitors and 164 enterprise executives participated, which led to a batch of projects settling in Sichuan. This year, we will continue to carry out similar activities to promote the CIIE in local areas, especially in central and western provinces. This is the first aspect I want to talk about.

Second, "advancement" means improvement in structure and quality. Recent years have seen continuous efforts in upgrading the use of foreign investment, for example, high-tech manufacturing industries and high-tech services industries logged an increase of 17.1% and 23.7%, respectively, in absorbing foreign capital last year, and the growth rates in China's central and western regions were above the national average level. However, we also noticed that both the scale and proportion of foreign investment in the manufacturing industry have decreased. In 2021, the scale dropped by 4.6% as against the figure of 2019; the proportion was reduced to 19.4%, which requires us to pay more attention. China is forging ahead from a large manufacturing country toward a manufacturing power and must focus on bringing more foreign funds to this industry. Therefore, we will further intensify support for absorbing more foreign investment, amend the Catalogue of Encouraged Industries for Foreign Investment to include more sectors, and guide more overseas investment into the advanced manufacturing industry, emerging industries of strategic importance, the digital economy, green development, and other areas. Meanwhile, as I just mentioned, China's central and western regions grew at a faster pace in absorbing foreign investment than the national average and have huge potential. China has a vast territory, and its western part has abundant natural resources and adequate labor force. In recent years, China's central and western regions have strengthened their industrial supporting capacity, in particular, the transport infrastructure, which connects China and overseas countries. For example, the launch of China-Europe freight trains and the construction of new land-sea corridor are all driving the growth of imports and exports. After the upgrading of certain airports in the western region, the capacity of land and air transport has been significantly improved. As a result, while pursuing a deeper development in those regions, we will call on more attention from foreign enterprises since the regions have huge potential untapped: a large population, residents' increasing consumption capacity and purchasing power with the growth of the local economy. We will well implement regional plans targeted on both major strategy and coordination development, help these regions bring into full play their advantages, foster new industries, facilitate a smooth transfer of coastal industries to the inland, and create a new growth pole in attracting foreign investment. Thank you! 

21st Century Business Herald:

Since the RCEP took effect on Jan. 1, trade between China and ASEAN countries has been growing rapidly. 

How does the MOFCOM view their further cooperation, and what are MOFCOM's following considerations and arrangements? Thank you!

Sheng Qiuping:

Thank you for your questions. China and ASEAN countries have been old neighbors, good friends, and good partners as they enjoy unique geographical proximity, cultural affinity, and complementary advantages. The year 2021 marks the 30th anniversary of the establishment of China- ASEAN dialogue relationship. Over the past three decades, China-ASEAN cooperation has seen remarkable progress, and the China-ASEAN economic relationship achieved leapfrog development. Last year, trade and economic cooperation between the two sides maintained good momentum, showing strong resilience and huge potential.

First, trade has further expanded. Since 2009, China has remained ASEAN's largest trade partner for 13 consecutive years. Last year, the trade volume hit a new record, reaching 878.2 billion U.S. dollars, accounting for 14.5% of China's total foreign trade. The ASEAN has been China's largest trade partner for two consecutive years, with the trade structure being continuously improved and the industrial and supply chains being connected more closely.

Second, the two-way investment has been booming. As of the end of 2021, the China-ASEAN two-way investment registered about 300 billion U.S. dollars. A large batch of projects has been brought forward under their joint efforts. Industrial parks are one of the highlights. Chinese enterprises have established economic and trade cooperation zones in Thailand, Indonesia, Vietnam, and other ASEAN countries, which has played an important role in local industry development. Good examples for such cooperation include the China-Singapore Suzhou Industrial Park; the China-Malaysia Cooperation on the "Two Countries, Twin Parks" (specifically China-Malaysia Qinzhou Industrial Park and Malaysia-China Kuantan Industrial Park); the China-Indonesia Cooperation on the "Two Countries, Twin Parks" (specifically the Yuanhong Investment Zone in Fuqing; Fujian Province as the Chinese park; and the Bintan Industrial Estate, the Aviarna Industrial Estate, and the Grand Batang City (collectively known as the Indonesian park).

Third, connectivity has been increasingly strengthened. The two sides have advanced the docking of the Belt and Road Initiative with the Master Plan on ASEAN Connectivity 2025 and boosted connectivity. Means of cooperation have been innovated, and a batch of infrastructure projects covering railway, highroad, ports, airports, bridges, and electricity grids have been advanced or completed. The China-Laos Railway started operation and the China-Singapore connectivity project, dubbed the "New International Land-Sea Trade Corridor," have seen remarkable progress.

Fourth, regional economic integration has been accelerated. As you have mentioned, the RCEP took effect on Jan. 1, as scheduled, through the joint efforts of China and ASEAN countries. On the same day, the China-Cambodia Free Trade Agreement also came into force. The two sides have also agreed to upgrade the China-ASEAN Free Trade Area to a higher level so as to promote trade and investment liberalization and facilitation.

In November last year, President Xi Jinping announced the establishment of a comprehensive strategic partnership with ASEAN leaders at the ASEAN-China Special Summit to Commemorate the 30th Anniversary of ASEAN-China Dialogue Relations, which is a new milestone in the history of China-ASEAN relations. Standing at a new historical starting point, we will work with the ASEAN to fully implement the important consensus reached by the leaders of both sides, push China-ASEAN economic and trade cooperation to a new level, and build a closer China-ASEAN community with a shared future.

First, we will deepen trade and investment cooperation. President Xi Jinping announced at the summit that China will import $150 billion of agricultural products from ASEAN in the next five years. We will actively promote the implementation by making good use of exhibition platforms such as the China International Import Expo and the China-ASEAN Expo and expanding the import of agricultural products and other high-quality products from ASEAN. We will better meet domestic needs through these efforts. In terms of investment cooperation, we will focus on expanding cooperation in new fields such as combating COVID-19, digital economy, green and low-carbon growth, promoting successful cooperation models, and jointly building demonstration parks for economic and trade innovation and development.

Second, we will strengthen the connections between industrial chains and supply chains. We will work with all parties to successfully hold the ASEAN Plus China, Japan, and the Republic of Korea (10+3) forum for cooperation on industrial and supply chains, jointly respond to the new situation and challenges of the global industrial chain and supply chains, and promote the coordination, innovation and sustainable development of the regional industrial chain and supply chains. Furthermore, we will continue to encourage the construction of new land-sea corridors and play a supporting role in interconnection, economic and trade cooperation, and industrial and supply chains.

Third, we will improve the institutional arrangements for economic and trade development. We will work with ASEAN and other parties to implement the RCEP well and promote the agreement to enter into force in more countries. We will expedite follow-up talks to complete the upgrading of the China-Singapore Free Trade Agreement within this year. We will actively promote the third version of the joint feasibility study of the ASEAN–China Free Trade Area, expand cooperation in new fields such as the digital economy, strive to start negotiations as soon as possible, and cooperate with ASEAN to build a more inclusive, modern, comprehensive and mutually beneficial free trade agreement.

In conclusion, in the new year, the MOFCOM will continue to deepen China-ASEAN economic and trade cooperation and promote the building of a closer China-ASEAN community with a shared future. Thank you.

Phoenix TV:

My question is for Mr. Wang. Despite multiple challenges last year, the economic and trade cooperation between China and Europe was taken up a notch. How do you evaluate the current economic and trade relations between China and Europe, and what are your expectations for the future? Thank you.

Wang Wentao:

Thank you for your question on the current state and outlook. 

China and the EU are two major independent forces globally with broad strategic consensus and shared interests. We are significant economic and trade partners who complement each other and conduct mutually beneficial and win-win cooperation. In 2021, despite the complex and severe situation, economic and trade cooperation between China and the EU continued a momentum of rapid growth.

Statistically speaking, both the "quantity" and "quality" of bilateral trade have improved. In terms of "quantity," the trade volume between China and the EU has exceeded $800 billion, hitting a record high. China remains the largest trading partner of the EU, and the EU is China's second-largest trading partner. In terms of "quality," the bilateral trade structure has been continuously optimized, and the growth rate of trade in aerospace, biology, optoelectronics, electronics, materials, and other fields has exceeded 30%. In 2021, the agreement between China and the EU on geographical indications took effect. China-Europe freight train trips hit about 1,000 by month and 10,000 by year. Last year, a record 15000 China-Europe freight train trips were made, up 22% from the previous year.

Steady progress has been made in two-way trade. The two-way trade between China and the EU has exceeded $270 billion, and there are sound investments and cooperation in the fields such as finance, vaccine research and development, new energy, electric vehicles, and logistics. China's investment in the EU increased, bucking the trend. According to a European Union Chamber of Commerce survey in China, 60% of the surveyed companies plan to expand their business in China. Nearly half of the surveyed companies' profits in China are higher than the global average. In October last year, I met with the president of the European Union Chamber of Commerce in China. He told me that many companies were optimistic about the Chinese market and China's future prospects and expressed willingness to continue to increase investment in relevant fields.

Meanwhile, economic and trade exchanges have been deepened. Mechanisms for exchanges at all levels, including the China-EU High-level Economic and Trade Dialogue, continue to play a role, and cooperation platforms between local governments and enterprises have become more complete. For example, the 2nd China-Central and Eastern European (CEEC) Countries Expo was successfully held. Four hundred twenty-five companies from CEEC countries participated in the expo, and 7.46 billion yuan of intentional purchases with CEEC were made. In addition, some EU companies actively participated in the 4th China International Import Expo (CIIE). The number of exhibitors, exhibition area, and intentional deals from EU companies accounted for more than one-third. Ireland was the guest country of honor for the China International Fair for Investment and Trade last year. This year, France will be the guest country of honor for the China International Consumer Products Expo this year.

President Xi Jinping pointed out that the two sides should stay committed to the comprehensive strategic partnership and the principle of mutual respect and mutual benefit, so as to ensure consistent, sound, and steady development of China-EU relations. We believe that China's development is an opportunity for the EU, not a challenge, nor a "threat," as some have claimed. We think that China-EU cooperation outweighs the competition. Of course, we also agree that the history, culture, social system, and development stage between China and Europe are different. Therefore, it is not surprising that some differences and divergence of views exist.. However, the two sides can promote healthy competition by strengthening communication. China and the EU are partners rather than rivals.

In the future, we are willing to work with the EU to implement the important consensuses reached by leaders of the two sides, firmly maintain the direction and underlying principle of China-EU economic and trade relations from a strategic perspective, synergize the Belt and Road Initiative with the EU's Global Gateway strategy, expand areas of cooperation, and deepen cooperative mechanisms. The two sides can advance pragmatic cooperation in various fields such as epidemic prevention and control, green development, digitization, finance, and technology, advance the process of ratification and entry into force of the China-EU investment treaty, and inject stability and positive energy into the China-EU relationship.

We can strengthen coordination and cooperation under multilateral frameworks such as the G20, UN, and WTO, promote the implementation of the Global Development Initiative, uphold the WTO-centered multilateral trading regime, and jointly promote the WTO reform in moving in the right direction. We should uphold openness and inclusiveness, reject the zero-sum mentality, oppose protectionism, and deepen market opening-up. We can strengthen cooperation between China and the EU as well as in third-party markets so as to contribute to the economic development of both sides and promote the economic recovery and stability of the whole world. Thank you.

China News Service:

Establishing pilot free trade zones (FTZs) is an important measure of the CPC Central Committee for advancing reform and opening up in the new era. Through explorations based on differentiated conditions and stress testing, pilot FTZs are expected to accumulate experience for high-standard opening-up. What achievements did the MOF make in promoting the construction of pilot FTZs last year? And what measures will be taken this year to further promote their high-quality development? Thank you.

Wang Shouwen:

Thank you. In July last year, General Secretary Xi Jinping presided over the 20th meeting of the central committee for deepening overall reform. Xi spoke highly of the achievements already made in the construction of pilot FTZs and made clear requirements for future work. The MOF, together with other relevant departments and localities, resolutely implemented General Secretary Xi Jinping's important instructions, and in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, made new progress in the construction of pilot FTZs.

First, we further broadened market access, as Minister Wang Wentao just mentioned, and released China's first negative list for cross-border trade in services in South China's Hainan Free Trade Port. The adoption of the negative list represented a major breakthrough in China's management model of cross-border service trade as well as a major step forward in promoting the further opening up in cross-border trade in services.

Second, we further shortened the negative list for market access of foreign investment in pilot FTZs. As we know, China released the first such negative list in 2013. In 2020, the number of items on the negative list was reduced to 30 after six adjustments. Last year, the number of items was further reduced from 30 to 27. China has kept opening wider to the world in investment.

Third, we rolled out a slew of reform measures to boost trade and investment facilitation. We specifically issued a document to grant pilot FTZs greater decision-making power for reforms with 19 measures to enhance trade, investment, international logistics, and the degree of convenience for the financial sector to serve the real economy and to explore judicial guarantee for trade and investment facilitation. We also issued policy documents to strengthen the protection of the ecological environment, pursue high-quality development, and strengthen fair competition.

Fourth, we continued to achieve institutional innovation. Establishing pilot FTZs is not just for the development of some regions. More importantly, it is to accumulate rich experiences for major national strategies. Last year, we unveiled a new batch of 18 best-practice cases. Until now, China's pilot FTZs have seen their successful practices in 278 institutional innovations promoted on the national level.

Fifth, we promoted the development of pilot FTZs. For example, the pilot FTZs have contributed to the stability of the overall performance of foreign trade and foreign investment. Last year, the use of foreign investment in China's 21 pilot FTZs rose 19%, 4.1 percentage points higher than that of the whole country. Their imports and exports increased by 29.5%, 8.1 percentage points higher than that of the whole country. Although the pilot FTZs are small in size, they contribute 18.5% to the total use of foreign investment in China and 17.3% to the country's imports and exports.

This year, we will continue to resolutely implement General Secretary Xi Jinping's important instructions and further promote the high-quality development of pilot FTZs.

First, we will pilot institutional opening-up in line with international high standards in pilot FTZs and free trade ports with the right conditions. As Minister Wang Wentao mentioned, China already took some new measures concerning free trade agreements, including applying to join CPTPP and DEPA. Drawing on these high-standard free trade agreements, we will step up efforts to explore and promote institutional opening-up in the fields of trade in goods, trade in services, e-commerce and intellectual property rights.

Second, we will promote the formulation and implementation of a negative list for cross-border trade in services applicable to all pilot FTZs. Last year, we issued a negative list for cross-border trade in services in Hainan Free Trade Port. On the basis of this list, we will formulate a negative list that will apply to all the 21 pilot FTZs this year so as to expand the scope of opening-up and accumulate experience for wider opening-up in the future.

Third, the MOFCOM will further support the growth of export-oriented industries and contribute to the dual circulation development paradigm where domestic and overseas markets reinforce each other. We will provide targeted suggestions for pilot FTZs and let them carry out whole-industrial-chain opening up and innovation based on their strategic roles, local conditions, and comparative advantages. We will improve the precision of our work on investment attraction, strengthen the effort on attracting industrial chain investment, and optimize service systems for overseas investment. We will also attract global resources of the industrial chains and accelerate the construction of competitive export-oriented industrial clusters so as to give full play to the leading role of pilot FTZs in carrying out high-level opening up.

Fourth, the MOFCOM will further put forward a new set of measures that are proven to work in pilot FTZs and can be replicated and applied elsewhere. We will give full rein to the initiative of pilot FTZs, strengthen explorations based on their differentiated conditions, and put forward more systemic innovation achievements that can be replicated and applied elsewhere. These achievements should be piloted at the provincial level, and those with fruitful results should be compiled as the seventh volume of reform and pilot experiences. After being approved by the State Council, these experiences will be further promoted across the country. Thank you.

Xing Huina:

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

International Business Daily:

Thank you. China has over 800 million people living in its counties, and this has created huge potential for consumption. In 2021, the MOFCOM worked with relevant government bodies to launch a campaign to build commercial facilities in counties. A layered approach has been taken in light of local conditions. What's the progress so far? What are the key tasks for 2022? Thank you.

Wang Wentao:

I'd like to take your questions.

Frankly speaking, commercial networks at the county level and below are the weak links of China's overall logistics system. Therefore, in 2021, the CPC Central Committee and the State Council made arrangements accordingly, and the MOFCOM and another 16 government bodies launched a campaign to build commercial facilities in counties. The campaign seeks to strengthen weak lines, ensure smooth logistics, improve commercial networks, and diversify business forms. The progress made in 2021 can be summarized in the following aspects:

First, a group of commercial sites was built or renovated. In 2021, we built or renovated 834 county-level comprehensive commercial service centers, 1,858 township-level commercial centers, and 369,000 village-level convenience shops.

Second, a group of logistics delivery facilities was improved. We enhanced the capacity of supply and marketing logistics, postal logistics, logistics enterprises, and e-commerce logistics. We have integrated and optimized the logistics resources, and improved a three-layered logistics system covering counties, townships, and villages. A total 1,212 county-level logistics centers and 14,800 village-level e-commerce parcel stations were renovated in 2021. Currently, 98% of townships and villages in China have direct access to big-brand logistics companies, and parcels can be directly delivered to more than 80% of administrative villages. Products purchased online can be delivered more efficiently to villagers. But there are still problems. Some villages are beyond the reach of the logistics networks. Due to China's vast territory and huge geographical differences and regional imbalances, some villages are hard to reach, and the costs of logistics are comparatively high in some mountainous regions.

Third, logistics channels of agricultural products were optimized and expanded. A total of 1,028 farmers' markets and wholesale markets for agricultural products were renovated. The number of agricultural products traded in wholesale markets increased 8.4% year on year, hitting one billion metric tons. Nevertheless, we need to improve the cold chain logistics for agricultural products, which is currently one of the weakest links in this aspect.

Fourth, the driving role of e-commerce entrepreneurship in boosting employment was further enhanced. Based on a demonstration project that brings e-commerce into villages, we continue to expand the coverage of e-commerce business in villages. In 2021, the online retail sales volume in villages amounted to 2.05 trillion yuan, exceeding the two-trillion mark, up 11.3%. The number of e-commerce entities in villages across China reached 16.33 million by the end of 2021.

Nevertheless, there are still weak links. The magnetic effect of agriculture and commerce is yet to strengthen, and market entities remain small-scaled, randomly scattered, and less-developed. These phenomena haven't changed fundamentally. According to feedback, mainly from rural residents, the high cost of logistics is still a prominent problem.

In addition, the commercial development across China is also varied. Take our campaign of building commercial facilities in counties, for example. For regions with sound development basis, the gap between commercial facilities in counties and mid-sized and big cities is narrowing down, and the integration between them is deepening. We have also seen progress in applying digital technologies in commercial facilities and creating new business forms in counties, but there is still room for improvement compared with the situation in developed cities. However, for underdeveloped regions with poor development basis, their weaknesses and problems are more prominent, and commercial facilities there cannot meet the local needs of daily life and production. We have been continuously making improvements by adopting a problem-oriented approach, strengthening coordination at the county level, and enhancing the leading role of the market. We have been implementing various tasks and continuously strengthening support for commercial facilities, logistics, the circulation of agricultural products, and cold chains. We have been working to promote the sales of agricultural products in cities and bring supply chain, logistics, and commodity services in counties and villages so as to further consolidate our efforts in the campaign of building commercial facilities in counties. Thank you.

Xing Huina:

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

Translated and edited by Cui Can, Wang Yanfang, Duan Yaying, Li Huiru, Zhang Rui, Liu Sitong, Zhang Tingting, Liu Qiang, Wang Yiming, Ma Yujia, Zhu Bochen, Chen Xia, Yang Xi, Wang Qian, Zhang Liying, Yuan Fang, Dong Qingpei, Jay Birbeck, David Ball and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Xiao Yaqing, minister of industry and information technology

Xin Guobin, vice minister of industry and information technology

Tian Yulong, chief engineer and spokesperson of the Ministry of Industry and Information Technology (MIIT)

Chairperson:

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

Date: 

Feb. 28, 2022

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press briefing being held by the State Council Information Office (SCIO). Today, we have invited Mr. Xiao Yaqing, minister of industry and information technology, to brief you on promoting the steady operation and quality upgrading of industry and information and communication technologies (ICTs), and to answer your questions. We also have with us Mr. Xin Guobin, vice minister of industry and information technology, and Mr. Tian Yulong, chief engineer and spokesperson of the Ministry of Industry and Information Technology (MIIT).

Now, I will give the floor to Mr. Xiao Yaqing.

Xiao Yaqing:

Ladies and gentlemen, friends from the media, good morning. I'd like to begin by thanking you for your attention and support for developing the industry and information technology sector. Together with my colleagues, I'm also glad to speak with you on promoting the steady operation and quality upgrading of industry and ICTs.

As we all know, 2021 was an extraordinary year, marking a milestone in the history of the Communist Party of China (CPC) and the country. Over the past year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the Party and the country have achieved new and major achievements in various undertakings. China has taken a leading position in both economic development and pandemic control worldwide, and new steps have been taken to build a new development pattern. New results have been achieved in high-quality development, and the implementation of the 14th Five-Year Plan is off to a good start.

Earnestly carrying out decisions made by the CPC Central Committee and the State Council, the MIIT has forged ahead, overcome difficulties, redoubled its efforts, and effectively responded to risks and challenges. Under the complex and severe situation, the outlook for the industry and information sector is positive, which has contributed to economic and social development. This is mainly reflected in the following aspects:

I. The industrial economy saw sustained recovery and development. Here are some figures:

First, the added value of industries above designated size increased by 9.6%, an increase of 6.8 percentage points over 2020, or an average two-year growth rate of 6.1%. Among them, the added value of the manufacturing industry increased by 9.8%, with an average two-year growth rate of 6.6%. The added value of the manufacturing industry accounted for 27.4% of GDP, with a total amount of 31.4 trillion yuan, ranking first in the world for 12 consecutive years.

Second, the profits of industrial enterprises above designated size increased by 34.3%, an increase of 30.2 percentage points over the previous year, or an average two-year growth rate of 18.2%.

Third, the national industrial capacity utilization rate came in at 77.5%. This is a relatively high level for recent years.

II. The resilience of the supply and industrial chains has been improved. Efforts have been made to solve problems that affect industrial chains and supply chains, and key industrial chains remain safe and stable. The international competitiveness of industrial chains in areas such as photovoltaics, wind power and shipping have been further enhanced. The volume of containers, once in shortage, more than doubled last year, up by 110.6%. Chip production also rose by 33.3%. The export delivery value of industrial enterprises above designated size logged a year-on-year increase of 17.7% and a two-year average increase of 8.3%, which is a high level for recent years. Exports of China's industrial products have made an important contribution to the response to the COVID-19, maintaining the stability and smoothness of the global industrial and supply chains, and promoting the recovery and growth of the global industrial economy.

III. The industrial structure was further optimized and upgraded. This can be seen from three aspects:

First, the leading role of the high-tech manufacturing industry and equipment manufacturing industry has been significantly enhanced, with the added value increasing by 18.2% and 12.9%, respectively. Their contribution rates to the growth of the above-scale industry reached 28.6% and 45%, respectively.

Second, the pace of digital and green transformation of the manufacturing industry has accelerated, and new progress has been made in cluster development. The numerical control rate of key processes of above designated size in key areas was 55.3%, and the penetration rate of digital research and development and design tools was 74.7%. All indicators showed a positive trend. We can also see that energy consumption of the added value of industrial enterprises above designated size decreased by 5.6% year on year, which is also good news.

Third, the guiding role of leading enterprises has been significantly enhanced, and the development pace of small- and medium-sized enterprises (SMEs) that focus on specialization, refinement, uniqueness and innovation has been accelerated. We have incubated more than 40,000 enterprises that focus on specialization, refinement, uniqueness and innovation, over 4,700 "little giant" enterprises, and more than 800 single-product specialists in the manufacturing industry.

IV. New achievements have been made in the innovation and development of key areas, and new breakthroughs have been made in major technological innovations. The Tianwen-1 probe completed orbiting, landing and roving during an exploration mission to Mars, the Shenzhou-12 and Shenzhou-13 manned spaceships were successfully launched, and the Haidou-1 submersible broke many world records. The demonstration plant of the high-temperature gas-cooled reactor was connected to the grid for the first time to generate electricity, and research into new types of displays, machine tools, new materials and other fields has achieved phased results. All of these have strongly supported the development of the industrial economy. Industrial robots and solar cells increased by 44.9% and 42.1% year on year, respectively, and the production and sales of new energy vehicles increased by 1.6 times year on year.

V. New progress has been made in the high-quality development of the information and communications industry. The construction of new information infrastructure has been intensified. A total of more than 1.43 million 5G base stations have been set up and opened, and the number of 5G mobile phone terminal connections has reached 520 million. Full 5G coverage has been achieved across all venues for the 2022 Winter Olympics, providing strong support for the creation of an intelligent Winter Olympics. Spectators found that these measures greatly improved the viewing experience. 5G applications are also rapidly expanding in such fields as industry, energy and transportation, empowering thousands of industries. New formats and models have emerged one after another. The digital economy is showing a strong growth momentum. For the past year, the business revenue of the communications industry, and software and information technology services industry increased by 8% and 17.7%, respectively. All these provide the basis for us to stabilize the industrial economy throughout the year, and also lay a good foundation for this year.

While seeing achievements, we also clearly realize that there are still many problems. For example, the core competitiveness of the manufacturing industry is not strong enough, the quality of the supply system needs to be improved, and there are still many problems related to the security and stability of the industrial chain and supply chain. In particular, the current external environment is more complex, severe, and uncertain, and domestic development is also facing the triple pressure of demand decrease, supply shock, and weakening expectations. The difficulties and challenges faced by the development of industrialization and informatization have increased. We will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and deeply understand the decisive significance of the "Two Establishments," keep in mind "the Nation's Most Fundamental Interests," strengthen the "Four Awarenesses," adhere to the "Four Confidences," achieve the "Two Upholds," carry forward the great founding spirit of the CPC, conscientiously implement the spirit of the Central Economic Work Conference and the decisions and arrangements of the CPC Central Committee and the State Council, adhere to the general principle of seeking progress while maintaining stability, fully, accurately, and comprehensively implement the new concept for development, build a new development pattern, and promote high-quality development. We will uphold the supply-side structural reforms as the main task, coordinate the COVID-19 pandemic prevention and control as well as economic and social development, and coordinate the development and security, implement the tasks of "Six Stabilities" and "Six Guarantees," and put the stable growth of the industry in an important position, focus on boosting the industrial economy, and especially, go all-out to achieve a stable continuity in the first quarter and promote the smooth running of the industrial economy. We will focus on promoting innovations and breakthroughs in basic and key areas, further enhance the resilience of the industrial and supply chains, and focus on increasing relief assistance to SMEs, foster enterprises to become ones with high growth potential, advanced technology and strong market competitive edge, continue to stimulate the vitality of market players. We will focus on strengthening the construction and application of new information infrastructure and improve the supply capacity of information and communication services. We will focus on promoting the in-depth development of the digital transformation of the manufacturing industry, and enhance the new advantages and new dynamic of industrial development. We will focus on the implementation of work for carbon peaking and carbon neutrality, implement the carbon peaking action in the industrial field, and improve the level of green and low-carbon development of the industry. We will follow the requirements of "Three Stricts and Three Earnests," and do a solid job of implementing each work one by one, promote the smooth operation and quality upgrading of industrialization and informatization, keep the proportion of the manufacturing industry basically stable, and enhance the core competitiveness of the manufacturing industry and build a solid economic "ballast stone." We will welcome the successful convention of the 20th CPC National Congress with excellent achievements.

Above is my brief introduction, and then my colleagues and I will answer the questions from you.

Shou Xiaoli:

Thank you, Mr. Xiao, for your introduction. Let's move on to the question-and-answer session.

CCTV:

Mr. Xiao, you just mentioned in your introduction that you will try your best to achieve a stable continuity in the first quarter and promote the smooth running of the industrial economy, build a solid economic "ballast stone." What is the trend of China's industrial economy in the first two months of this year? Next, what measures will the MIIT take to achieve a good start in the first quarter and a smooth running of the industrial economy throughout the year?

Xiao Yaqing:

Thank you for your questions. In general, after efforts from various aspects, so far, China's industrial economy has continued the trend of a steady recovery in the fourth quarter of last year, and the overall operation is stable. Particularly with the implementation of various policies and measures for the growth of the industrial economy, phased results have been achieved in boosting the industrial economy. I don't have the statistics for February yet, but today is the last day of this month, so I would like to introduce the following aspects:

The first is the production during the Spring Festival and the resumption of work after the festival. Our questionnaire survey on more than 20,000 key industrial enterprises showed that 14.5% of enterprises didn't stop production during the Spring Festival, 89.5% of enterprises resumed work before the Lantern Festival, the 15th day of the first lunar month, and 95.5% of enterprises resumed work before Feb. 20. The second is the production and operation of enterprises in key industries in January. According to statistics from relevant associations, the production and sales of automobiles in January were 2.422 million and 2.531 million, respectively, up 1.4% and 0.9% year-on-year, respectively. Among them, the production and sales of new energy vehicles were 452,000 and 431,000, an increase of 1.3 times and 1.4 times, respectively. According to monitoring by the China National Coal Association, the average daily output of coal by key coal enterprises reached 7.44 million tons in January, a year-on-year increase of 1.8%. In January, the SMEs development index was 89.4%, up 0.2% month-on-month, and kept rebounding for three consecutive months. The third is about the situation of industrial-related indicators. The manufacturing PMI in January was 50.1%, which maintained above 50% for three consecutive months; the prosperity index of China's logistics industry was 51.1%, which also remained in the prosperity range; the scale of newly increased social financing and RMB loans both hit record highs and newly increased medium and long-term corporate loans showed a year-on-year increase for the first time since July last year.

Of course, we must also see that, affected by multiple factors, the current situation of the stable recovery of the industrial economy is not yet solid, and great efforts are still needed to promote the smooth operation of the industrial economy.

In the next step, first, we will make every effort to boost the industrial economy and ensure smooth continuity of the first quarter. We will conscientiously implement a series of policies and measures to promote the steady growth of the industrial economy, strengthen policy support, and promote the implementation of various policies and measures. At the same time, we must remain vigilant in identifying potential problems and solve them in a timely and coordinated manner.

Second, we will focus on breaking through the block on the supply of key products. And we will strengthen the guarantee and coordination of energy, logistics, labor, and other factors, give priority to ensuring the stable operation of key enterprises such as basic industrial products and important living materials, including agricultural materials and fertilizers.

Third, we will actively boost effective investment in manufacturing. We will ensure the implementation of major programs and projects in the 14th Five-Year Plan and start the implementation of a number of industrial infrastructure re-establishing projects. We will encourage and support enterprises to strengthen technological transformation, and promote telecom operators to accelerate the progress of investment and construction for 5G and gigabit optical networks.

Fourth, we will take concerted measures to expand consumer demand. We will continue to implement policies such as subsidies for the purchase of new energy vehicles, incentives and subsidies for charging facilities, and reduction and exemption of vehicle and vessel taxes. At the same time, we will carry out activities of bringing new energy vehicles, green smart home appliances, and green construction materials to the countryside. We will also further promote the action of increasing varieties, improving quality, and creating brands for products, and fully support foreign trade enterprises to expand exports. Thank you.

Science and Technology Daily:

Now more and more enterprises have realized the importance of digital transformation, and they are also accelerating the pace of digital transformation. We know that last year the MIIT focused on accelerating the digital transformation of China's manufacturing industry. I would like to know, as the industry's competent authority, how effective were the efforts in this regard? Secondly, what measures will the ministry take in the next step to support the digital transformation of enterprises? Thanks!

Tian Yulong:

Thanks for your question. As you said, the digital transformation is mainly about the popularization and application of the new generation of information technology, which will bring profound changes to production modes, development models, and enterprise forms in the manufacturing industry. It should be a compulsory course for enterprises to improve and develop their competitiveness. In recent years, thanks to joint efforts of the MIIT, relevant departments, and local governments, the digital transformation of China's manufacturing industry has seen accelerated development and good trends in innovation activities. It can be embodied in the following three aspects:

First, the foundation of the digital transformation has been consolidated. Through the implementation of the industrial internet innovation and development projects, more than 150 comparatively large-scale industrial internet platforms have been incubated, serving more than 1.6 million industrial enterprises, which provided strong support for digital transformation. Second, the scope of the digital transformation has been expanded. The new generation of information technology, including 5G, big data, cloud computing, and artificial intelligence, has accelerated integration and penetration with the manufacturing industry. Especially in industrial sectors like steel, automobiles, equipment, electronics, and petrochemicals, integrated and cross-industry innovations have been deepened. More than 2,000 "5G + Industrial Internet" projects are under construction across the country. Third, the degree of digital transformation has been enhanced. Just now, Mr. Xiao mentioned that the numerical control rate of key processes reached 55.3% among industrial enterprises above designated size, and the popularizing rate of digital R&D tools reached 74.7%. New forms and models of digital businesses also developed and innovated. The proportion of enterprises engaged in internet-based collaboration and service-oriented manufacturing reached 38.8% and 29.6%, respectively. Through internet-based and digital-driven transformation, enterprises not only improved their quality, efficiency, and effectiveness, but also gained benefits and improved their industrial competitiveness.

Next, we will continue our previous work and mainly focus on the following three aspects.

First, we will highlight key points and enhance enterprises' digital capabilities. Enterprises are the main body of digital transformation and reconstruction. At present, the digital capabilities of enterprises are generally not strong enough, which requires us to further promote and support them. We will summarize and promote a number of good technologies and practices, and issue relevant guidelines and guidance by industry and field. We will cultivate a group of high-quality system solution suppliers to provide practical and effective typical cases and methods for enterprises. Meanwhile, leading enterprises in the industry are supported to build digital empowerment platforms for the development of SMEs, and combine the optimization of industrial and supply chains, playing the role of digital transformation. By the end of this year, we will work with relevant parties to provide digital transformation services for at least 100,000 SMEs, and enable them to operate businesses on cloud platforms.

Second, we will expand applications and enrich product supply. We will continue to implement industrial internet innovation and development action plans, explore a number of typical application scenarios of "5G + Industrial Internet," and build a batch of fully 5G-connected factories. We will also accelerate the access of the industrial internet platforms to bases, industrial parks, and industrial clusters so as to connect various industries and empower enterprises and industrial parks.

Third, we will build and optimize the environment for digital transformation, which is a very important foundation for digital transformation. The standard system of transformation should be further improved. We will improve the talent training system for manufacturing transformation and further deepen the integration of industry and education and school-enterprise cooperation. At the same time, we will work with financial institutions to enrich financial products for digital transformation so as to further reduce the cost of enterprises' digital transformation. It is important to strengthen data security in digital transformation. We will actively foster the data factor market and support the establishment of data exchanges in Beijing and Shanghai. We will also strengthen industry data security supervision and formulate data catalogs to strengthen protection.

That's my answer. Thank you.

Cover News:

How do you see the outstanding performance of China's new energy vehicle industry over the last year? Will such achievements continue this year? Regarding this industry, what's China's focus for its development going forward?

Xiao Yaqing:

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

Xin Guobin:

Thank you. China's new energy vehicle industry developed relatively fast during the 13th Five-Year Plan period (2016-2020). Its annual sales increased from 507,000 in 2016 to 1.367 million in 2020, with an average annual growth rate of 28%. Last year, the industry witnessed an outstanding performance. The number of its output and sales of vehicles both exceeded 3.5 million, reaching 3.545 million and 3.521 million, respectively, up 1.6 times year-on-year, ranking it first in the world for seven consecutive years, with a cumulative promotion volume of over 9 million units. Since the achievements of the new energy vehicle industry in 2021 have exceeded the predictions of some experts and institutions, the public must be concerned about whether it can maintain its encouraging development trend this year. Recently, we conducted a series of research and surveys, which showed that the development of new energy vehicle industry is in line with the direction of green and low-carbon development. It has led to the expansion of industry chains such as power batteries, electric motors, and electric controls; accelerated the application of new technologies, including intelligent cockpits, automatic driving, and intelligent networks; and promoted the transformation of logistics and transportation, which brought a new experience of green travel to consumers. The ecosystem of industrial development has been gradually improved. Judging from all aspects, China's new energy vehicle industry has entered a new stage of large-scale and rapid development. Although the development is still facing some difficulties and challenges, it is expected to maintain a high growth trend this year. Next, the MIIT will give full play to the inter-departmental joint meeting mechanism on energy saving and the new energy vehicle industry and focus on the following five aspects.

First, we will improve support policies. We will step up efforts to clarify support policies such as extending purchase tax exemptions for NEVs. We will improve the "dual-credit" policy and make it effectively dovetailed with the decline of subsidies for NEV purchases to stabilize market expectations. We will compile a roadmap for the green development of the automobile industry and provide guidance and assistance to industries and companies.

Second, we will support innovative breakthroughs. We will promote the integration of electrification and intelligent, connected technologies, improve the safety, low temperature adaptation and other performances of storage batteries, step up the technological application of 5G and the vehicle infrastructure cooperative system, and develop more functions such as leisure and entertainment, life services and autonomous driving to meet the needs of consumers. We will continue to improve the product quality and driving experience of NEVs to boost consumers' sense of gain.

Third, we will promote market expansion. We will launch the pilot project in some cities to completely electrify vehicles used in the public service sector, and step up the electrification of urban logistic vehicles, taxis and sanitation trucks. Focusing on the problem of charging in old residential areas and expressways which people urgently require solving, we will work with other departments to accelerate the construction of charging and battery swap stations and other infrastructure, and promote information sharing and unified settlement to continuously improve the convenience of charging NEVs. 

Fourth, we will strengthen the guarantee of resources. We will strive to meet the production requirements for storage batteries, moderately accelerate the development of domestic lithium resources, and crack down on unfair competition such as hoarding and price gouging. Meanwhile, we will improve the system of storage battery recycling, support high-efficiency dismantling, recycling and other technological breakthroughs to continuously improve the recycling rate and resource utilization efficiency.

Fifth, we will strengthen safety supervision. We have always emphasized that safety is the prerequisite for the development of the NEV industry and that it cannot develop without safety guarantee. Therefore, we should stick to the bottom line, and improve our capabilities to guarantee functional security, data security, and network security in a comprehensive way. We will continue to improve NEV safety and technical standards, and improve battery thermal runaway warnings and the level of safety protection. We will build a systematic, scientific and standardized NEV safety management system so that consumers can be more confident about using NEVs. Thank you.

Nikkei:

What measures has China taken in the past five years to improve the industrial chains for integrated circuits and semiconductors? How do you expect the level of China's self-sufficiency in semiconductors to improve by 2025? By approximately what percentage?

Tian Yulong:

Thank you for your questions. The integrated circuit industry has attracted global attention, and the CPC Central Committee and the State Council have attached great importance to it. In 2020, the State Council released policies on promoting the high-quality development of the integrated circuit and software industries in the new period, and put forward many important measures to develop the integrated circuit industry. The MIIT has worked with relevant departments and local governments to actively implement these policies. They have played an important role in the development of China's integrated circuit industry, especially in stabilizing the industrial and supply chains for integrated circuits. This can be seen in three aspects:

First, we have worked with other departments to release the first list of duty-free products for the integrated circuit industry and issued a circular about the conditions for companies to enjoy relevant policies. Domestic and foreign companies will enjoy the policies equally. Our purpose is to support integrated circuit companies of different ownerships to advance the development of the sector. 

Second, we have encouraged technological innovation. We have guided local governments to set up manufacturing innovation centers, improve their technology supply capacity, and speed up the transfer application and commercialization of new technologies, new processes and new equipment in particular. Meanwhile, we have set up relevant standards to promote the application and quality evaluation of integrated circuits, and further increased their application and promotion in automobiles, medical care, energy and other fields to drive the rapid development of the integrated circuit industry via applications and markets. 

Third, we have fostered a sound development environment for the integrated circuit industry. We have given full play to the role of capital in driving industrial development, and guided and encouraged social capital to invest in the integrated circuit industry. In particular, in accordance with various policy requirements, we have strengthened the protection of intellectual property rights and created a market-oriented, law-based and international business environment. The MIIT and the Ministry of Education have encouraged universities to establish the major of integrated circuits as a first-class discipline, build high-level microelectronics colleges, strengthen school-enterprise cooperation, and cultivate high-quality talents. 

The integrated circuit industry is an intelligence-intensive industry. In the future, integrated circuits will continue to be a highly globalized industry, which highlights the importance of strengthening cooperation in global industrial and supply chains. The industries of various countries should strengthen the division of labor and cooperation, so that integrated circuit technologies will continue to develop and the market will keep expanding.

China is the world's largest and fastest growing integrated circuit market, which provides broad market opportunities for the development of global enterprises. At the same time, we have been an important producer and supplier of integrated circuits, and have made continuous contributions to the global integrated circuit industry. Therefore, guaranteeing the stability of industrial and supply chains not only helps support China's self-sufficiency, but also provides resources for global development. We welcome the global integrated circuit industry to increase its investment in China, conduct various forms of cooperation, and jointly contribute to stabilizing industrial and supply chains for the global integrated circuit industry. We will continue to provide good policies and market environments for both domestic and international integrated circuit enterprises, treat all types of market entities equally, offer the same treatment for domestic and overseas investments, and especially enhance intellectual property protection. We will also jointly promote the innovation and development of the integrated circuit industry, and maintain the stability of industrial and supply chains for the global integrated circuit industry. Thank you.

Xiao Yaqing:

I would like to just add one point. As I said, the industry grew 33.3% last year, which represents relatively fast growth. This year, with the advance of industrial digitization and digital industrialization, and the 'increased demand for consumer electronics, we estimate that the industry will have relatively high growth rate among the 31 major manufacturing categories. Mr. Tian mentioned the issue of international industrial cooperation, which is very typical in this industry. We believe this is a major trend and should be adhered to. Thank you.

CNR:

SMEs have been significantly affected by the pandemic. We have noticed that a series of tax and fee reduction measures have been introduced at the national and local levels to ease their difficulties. With the support of these policies, what is the current situation of SMEs? What measures will the MIIT take to further support their development this year?

Xiao Yaqing:

Thank you for your questions. The CPC Central Committee and the State Council have always attached great importance to the development of SMEs, and have issued a series of policies and measures to help solve the difficulties faced by SMEs and stimulate their vitality. With the support of various polices, especially under the efforts made by SMEs themselves, the operating income and total profit of industrial SMEs above designated size increased last year by 19.9% and 25.6%, respectively, with average two-year growth rates of 9.9% and 16.8%. Both are higher than the levels of 2019 before the pandemic. The survey we conducted on 27,000 SMEs shows that the resumption of work after this year's Spring Festival was satisfactory. I reported on the status of the resumption of work before the Lantern Festival. At the same time, we are also aware that the economic situation at home and overseas has been severe and complex. The foundation for the development of SMEs has not yet been stabilized. In particular, disrupted by the sporadic resurgences of COVID-19, insufficient market demand, rising costs, difficulties in collecting accounts receivable, problems in recruiting workers and other issues have been quite prominent. In order to further help SMEs, we will take the following measures:

First, we will attach greater attention to implementing policies, and promote detailed implementation of policies that benefit enterprises. The central government has introduced many policies and measures to help SMEs. Since last year, 25 such policies have been promulgated at the national level, and 52 series of policy measures have been issued at the provincial level. We will strengthen overall coordination, increase policy publicity and interpretation, so that SMEs can have a better understanding of these policies, and the way to better use them. We will conduct third-party assessments into the development environment of SMEs, and jointly implement the policies of fiscal taxation, financial credit and guaranteeing stable prices, in order to ensure SMEs benefit from the policies.

Second, we will do more to provide enterprises with accurate services and help them solve problems. In response to the demands of SMEs, we will continue to provide them with accurate services in conjunction with relevant departments and regions. We will initiate a "Benefiting Enterprises Together" nationwide service action to provide public services to SMEs, and continue the SMEs Service Month campaign. We will also hold the China International SME Fair and the APEC SME Technology Exchange and Exhibition, and mobilize all sectors to serve SMEs well. We will take measures to clear arrears owed to SMEs, and protect the legitimate rights and interests of SMEs in accordance with the law. There are still many large enterprises and institutions that have defaulted on payments to SMEs, which is the focus of our rectification work this year. At the same time, we should work to ease difficulties and the high cost of financing. We need to guide financial institutions to increase support to micro, small, and medium enterprises (MSMEs), and encourage SMEs to increase the total amount of financing, expand the scope of benefits and lower financing costs. 

Third, we will encourage SMEs to focus on their specialisms in niche sectors, and support more SMEs to become suppliers of unique products and experts in complementary services. This year, there are plans to cultivate another 3,000 national-level specialized "little giant" firms, and encourage provinces to foster SMEs with specializations and to bring the number up to 50,000. According to the data, the total sales volume, profits and innovation capacity of the SMEs and "little giant" enterprises that specialize in niche sectors have significantly improved compared with ordinary ones. We will focus on supporting the development of such enterprises around the industrial chain, and better guide and encourage leading enterprises to support the development of SMEs. We will launch a campaign to promote integrated innovation among large, medium and small-sized enterprises. We will also encourage them to open up their innovative resources, including technologies, markets, standards and human resources in accordance with the market and the rule of law. Thank you.

21st Century Business Herald:

The latest data shows that the shortage of chips in the automobile industry has been eased. Has MIIT made assessments for the crunch situation this year? How will the automobile industry respond to this issue this year? What are the further plans for the chip industry?

Xin Guobin:

Thank you for your questions. Car chip has become a frequently discussed issue in our society since the outbreak of the COVID-19 pandemic. The MIIT has paid great attention to the work regarding chips, and researched with related sectors to address the issue. We set up a working group to expand and apply automotive semiconductors, and strengthened demand-supply links between car, components and chip enterprises; implemented measures in the circular to manage and facilitate services for enterprises, and promote substitute products' application; and coordinated with relevant departments to crack down on speculation and price pushing and other illegal activities, thus raising the supply capacity of chips and striving to maintain the smooth functioning of the automobile industry.

Through joint efforts, significant achievements have been made in car chip supply, with a favorable momentum emerging in monthly production and sales since the fourth quarter of last year. In 2021, 26.082 million and 26.275 million cars were produced and sold, with a year-on-year increase of 3.4% and 3.8%, respectively, ending a period of continuing reduction for three consecutive years, which was a hard-earned outcome. In January 2022, 2.422 million and 2.531 million cars were produced and sold, up 1.4% and 0.9% year-on-year, respectively. It's fair to say that the automobile industry has gotten off to a stable start this year.

Regarding the monitoring data of key car enterprises, there still exists certain chip shortages considering the demands and production plans of both car and components enterprises, although chip crunch is mitigating. Major chip enterprises worldwide have strengthened their production and supply of automotive-grade chips and will gradually release new production capacity this year. In addition, the domestic supply capacity of certain types of chip products are increasing. Therefore, chip supply's favorable momentum is expected to continue. 

Next, we will take a slew of measures to maintain the steady operation of the automobile industry, with the focus being as follows:

First, we will strengthen the demand-supply connections. We will create online link platforms for car chips based on our past efforts, provide information channels for chip production and supply, and improve the upstream and downstream cooperation mechanism of the industrial chain.

Second, we will intensify coordination efforts. We will guide car and components enterprises to improve their supply chain, make rational production plans, support each other, improve the efficiency of resource allocation, and minimize the impact of the chip crunch. Allocation efficiency is quite important. Some enterprises' products are sold fast, so the chip crunch will have a big impact on them, but some enterprises' products are not recognized by consumers, so even if they get chips, people won't buy their products, and this will result in a mismatch of resources in the industry.

Third, we will boost the capacity of chip supply. We will further support coordination and innovation among car, components and chip enterprises, so as to improve domestic chip production and supply capacity in a prudent and orderly manner. Presently, our application testing and assessment system is not sound, so we will make further efforts to remedy the deficiencies.

Fourth, we will advance international cooperation. As the automobile industry is a highly internationalized industry, we must carry out globalized development, stimulate transnational chip enterprises to increase supply to the Chinese market, intensify the distribution of domestic production capacity, and strengthen the resilience and stability of the industrial and supply chains.

Mr. Tian Yulong has just introduced the planning of the whole chip industry, and I will add some points regarding your questions.

The CPC Central Committee and the State Council issued the Measures on High-quality Development of Integrated Circuits and Software Industries in a New Era. Next, we will focus on implementing the policy. We will promote the free flow of production factors and resources, create a fair and just market environment, intensify intellectual property rights protection, and deepen international coordination, thus further improving the high-quality development of the industry. Thank you!

Hong Kong Economic Herald:

It's very nice to see you again, Mr. Xiao. The last time I interviewed you was in 2019, when ministers took questions from the media during the "two sessions." My question this year is about advanced manufacturing. Feb. 26 marks the eighth anniversary of General Secretary Xi Jinping's proposal on the coordinated development of the Beijing-Tianjin-Hebei region. What's the MIIT's take on narrowing down the gap between north and south China in developing advanced manufacturing, especially supporting Tianjin to further build itself into an R&D center for advanced manufacturing? Thank you.

Xiao Yaqing:

The manufacturing gap between the north and south is your personal opinion. China has a full-fledged industrial system. Industries classified into 41 divisions, 207 groups, and 666 classes are well allocated across China. China is the only country in the world to obtain all the divisions of industrial classification. The complete industrial system has made significant contributions to the growth of the national economy and meeting people's everyday needs.

With the development of the market economy, there are some regional differences due to the varied rates of growth and marketization. This is a common phenomenon of development. The CPC Central Committee and the State Council have introduced many measures to advance coordinated regional development. The implementation of these measures provides key guiding principles and fundamental support for the sustainable and sound development, and more effort should be made in the implementation process. 

In the meantime, we also need to know that, as a business environment that is based on market principles, governed by law, and up to international standards gradually takes shape in China, more opportunities have been offered to more enterprises, especially those with industrial foundation and advantages. As China continues to deepen reform, the leading enterprises in different industries and advantageous enterprises will emerge with renewed vitality and provide sound support to the development of these industries and enhance their core competitiveness.

We believe that, with the further implementation of the 14th Five-Year Plan and China's regional development strategies, practitioners of China's industrial sector will keep striving to improve, and the sector will see new and more promising prospects. Thank you.

People's Posts and Telecommunications News:

Over the years, mobile internet users have paid more and more attention to user experience. What efforts did the MIIT make in 2021 to protect users' rights and interests and improve relevant services? What new measures will be taken this year? Thank you.

Xiao Yaqing:

Thank you for your questions. With the rapid development of the mobile internet, people find it increasingly difficult to live and work without cellphones and mobile internet. In 2021, we played our part in the nationwide campaign which aims to bring tangible benefits to the public and worked to improve all aspects that affect user experience. We continuously enhanced the quality of services, strengthened personal information protection, and earnestly protected users' rights and interests. We mainly solved problems concerning the management of mobile apps and the senior-friendly transformation of apps and websites. In terms of mobile app management, many problems were reported. By taking a set of measures such as formulating standard testing techniques, launching special regulatory campaigns, and the self-regulation of industries, we managed to crack down on apps violating regulations regarding collecting and using personal information, as well as pop-ups and other behaviors that violate users' rights and interests. We all found it very difficult to close out pop-ups. In 2021, we tested 2.08 million mobile apps. A total of 1,549 regulation-violating apps were notified and the 514 apps that refused to make corrections were removed from app stores. After rectification, these apps will provide better services for users. In terms of elderly-friendly transformation, a total of 227 websites and apps have completed transformation and introduced functions such as font enhancer, voice guidance, and one-click customer service connection, to name a few. We also provide guidance for digital product companies and let them support the design and production of elderly-friendly digital products.

Of course, our work in this regard will not stop here, and we will continue making efforts this year.

First, we will focus on users' rights and interests and strengthen comprehensive management. We will continuously pay attention to various violations reported by users and carry out further regulatory work on mobile apps. We will implement all-around supervision on various aspects concerning mobile internet services. Our supervision work will mainly cover three fields. These include various end products such as cellphones and tablets, key participants along the accountability chain such as app stores, third-party software development kits and pre-installed apps, and the technical test of mobile apps. By doing so, we aim to comprehensively safeguard users' rights and interests.

Second, we will focus on services and meet users' expectations. We will work to enhance the capacity of personal information protection and urge major internet companies to set up customer helplines and respond to customers' requests.

Third, we will focus on key groups of users and promote the inclusiveness of information services. We will organize more mobile apps and websites and carry out elderly-friendly and barrier-free transformation and improvement, and work to introduce a group of model projects accordingly.

Fourth, we will focus on developing long-term mechanisms and form synergy among our work. Centering on key aspects such as mobile internet services and personal information protection, we will further improve both incentive and accountability mechanisms, strengthen technical methods, and encourage companies to improve their services and other capacities. Thank you.

Yicai:

Ranking first among new types of infrastructure facility, 5G is an important method to stabilize investment and economic growth. What are the MIIT's plans this year concerning the construction and application of 5G? Thank you.

Tian Yulong:

Thank you for your question. Since the commercial use of 5G technology officially kicked off, it has, as you mentioned, played a crucial and leading role in promoting new infrastructure. Due to the joint efforts of the MIIT, other government bodies, local governments, and the industrial sector, China's 5G construction and application remains world-leading. Currently, the 5G network has covered all prefecture-level cities, the urban area of all counties, as well as 87% of seats of townships and towns. The 5G coverage in China is definitely world-leading. This has played a vital role in stabilizing economic growth and investment.

This year is a critical year for the scale development of 5G applications. According to the overall plans of the Central Committee of the Communist Party of China (CPC) and the State Council, we will mainly continue our efforts for the integrated development of the network, applications, and the industry.

First, we will make solid progress in the development of the 5G network. Our goal is to build more than 600,000 5G base stations this year. As Mr. Xiao just mentioned, we now have over 1.42 million 5G base stations, so we can bring the total number to 2 million by the end of this year. We will constantly expand the scale of infrastructure building, , optimize the layout of infrastructure based on the needs, and cover more key areas such as factories of companies and industrial parks with the network. At the same time, we will improve the penetration of the network into high-speed trains, transportation hubs, shopping centers, and other densely-populated areas, and continue expanding its coverage in counties, towns, and townships.

Second, we will vigorously promote the innovative development of 5G applications. We will further implement the action plan for 5G applications dubbed "Raising the Sail," which is a key element of our effort. We will successfully hold the 5G application competition dubbed "Bloom Cup" to explore more new achievements and technologies and promote their wide application and commercialization. At the same time, guided by the needs of the industry, we will further develop demonstrative application scenarios for 5G plus industrial internet, pilot 5G plus medical and health care, and 5G plus smart education, and continue to deepen and expand our efforts in agriculture, culture, and tourism. We will launch a number of new smart terminals and apps for individual users to further improve their 5G experience.

Third, we will vigorously upgrade 5G technologies. We will intensify research and development (R&D) on key chips and core components, support relevant sectors to actively participate in formulating international standards, and aligning with them. At the same time, we will continue R&D and experiments on 5G enhancement and boost their capacity for integrating with other industrial verticals. We will increase the variety of 5G application products and motivate companies to work out more modular products of different levels and prices so as to meet the needs of different industries, different areas, and the general public for differentiated, customized, and personalized 5G products, and boost the rapid development of 5G technologies through scaled applications.

That is all I have to say. Thank you.

Bauhinia Magazine:

The industrial sector is an important sector for the goals of peaking carbon emissions and achieving carbon neutrality. Regarding this matter, what is the consideration of the ministry? And what specific measures will you take this year to make steady progress in green and low-carbon industrial transformation? Thank you.

Xiao Yaqing:

Thank you for your questions. To peak carbon emissions and achieve carbon neutrality is a major strategic decision made by the CPC Central Committee in consideration of both domestic and international dynamics. It will be a broad and profound transformation, and it is an inherent requirement and an inevitable choice for high-quality development. Energy consumption in the industrial sector accounts for about 65% of China's total energy consumption, and it is one of the major areas of energy conservation and carbon reduction efforts. We have a tight schedule to accomplish this arduous task. It is a major challenge as well as a major opportunity. Green and low-carbon industrial development will certainly bring new growth space, new innovation impetus, and new development opportunities to the industrial economy. There are many things we can do and many areas we can explore in green and low-carbon development. We will conscientiously implement the decisions and plans of the CPC Central Committee and the State Council, bear in mind the country's most fundamental interests, and adhere to a holistic view in order to handle well the relationships between development and emission reduction, the whole and the parts, long-term goals and short-term goals, and government and the market. We will make overall considerations to keep the proportion of manufacturing basically stable, ensure the security of industry chains and supply chains, and meet reasonable consumption needs. We will rationally break down goals and tasks to promote green and low-carbon industrial transformation in a steady and orderly manner.

Our work will cover the following aspects.

First, we will strengthen the top-level design of policies. We will implement the Action Plan for Carbon Dioxide Peaking Before 2030 issued by the State Council, actively take actions for peaking carbon emissions of the industrial sector, and release action plans for the industrial sector and key industries. With a focus on industries like iron and steel, building materials, petroleum chemistry, chemical industry, and nonferrous metal, we will formulate a series of categorized and targeted policies based on industry characteristics and development conditions to push for peaking carbon emissions in the industrial sector in a steady, sound, scientific and orderly manner.

Second, we will make in-depth adjustments to the industrial mix in an orderly way. We will pursue new development before ruling out the obsolete: we will deepen supply-side structural reform in key industries and build an industrial structure conducive to reducing carbon emissions; we will strictly implement production capacity swap policies in industries like iron and steel, cement, plate glass, and electrolytic aluminum; and resolutely restrict the haphazard development of projects that are energy intensive and have high emissions and low levels of production. In particular, we will strictly control the scale of energy use in key industries such as iron and steel.

Third, we will implement green and low-carbon transformation in the manufacturing sector. We will release a directory to guide key industries in green and low-carbon upgrading and transformation, and promote the innovation of low-carbon techniques and the digital transformation in key industries and sectors. We will push for sound implementation of the plan for the comprehensive utilization of industrial resources, and strengthen energy conservation monitoring and supervision and energy conservation diagnosis. We will speed up the cultivation of green data centers, give play to their demonstrative and leading role, and build public service platforms for key industries concerning peaking carbon emissions.

Fourth, we will build a supply system for green and low-carbon products. We will improve the green manufacturing system, improve the green design of products, and cultivate a number of demonstrative companies in green design. We will increase the supply of photovoltaic equipment, fans, and energy-saving motors, carry out special actions to pursue the innovative development of the smart photovoltaic industry, and improve the industry chain for wind power equipment. We will revise and improve the system for parallel administration of auto companies' fuel consumption and new energy vehicle credits. As Mr. Xin briefed just now, we will step up efforts to popularize new energy vehicles, vigorously develop green smart ships, promote the certification of green building materials products, and make moves to get rural areas access to green building materials. By increasing the supply of green and low-carbon products, we will help sectors like energy, transportation, and urban and rural development peak carbon emissions.

It is a very important task, and we need to push forward it step by step for notable outcomes. Thank you.

Shou Xiaoli:

Thank you, Mr. Xiao, for your introduction. Thank you to all the speakers and media friends. That concludes today's press conference. See you next time.

Translated and edited by Zhang Rui, Liu Qiang, Lin Liyao, Zhou Jing, Wang Mengru, Wang Wei, Yan Xiaoqing, Li Huiru, Zhang Tingting, Chen Xia, Zhu Bochen, Liu Sitong, Zhang Jiaqi, Ma Yujia, David Ball and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Tang Renjian, director of the Office of the Central Rural Work Leading Group and minister of Agriculture and Rural Affairs

Liu Huanxin, deputy director of the Office of the Central Rural Work Leading Group and administrator of the National Rural Revitalization Administration

Wu Hongyao, deputy director of the Office of the Central Rural Work Leading Group and member of the CPC Leading Group of the Ministry of Agriculture and Rural Affairs

Chairperson:

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

Date: 

Feb. 23, 2022

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). On Feb. 22, the Central Committee of the Communist Party of China (CPC) and the State Council issued a document outlining key tasks to comprehensively push forward rural revitalization this year, also referred to as the "No. 1 central document," that everyone is interested in. To help people accurately understand the principles and content of the document, today we have invited Mr. Tang Renjian, director of the Office of the Central Rural Work Leading Group and minister of Agriculture and Rural Affairs to introduce and elaborate on the document and answer your questions. We also have with us Mr. Liu Huanxin, deputy director of the Office of the Central Rural Work Leading Group and administrator of the National Rural Revitalization Administration, and Wu Hongyao, deputy director of the Office of the Central Rural Work Leading Group and member of the CPC Leading Group of the Ministry of Agriculture and Rural Affairs.

Next, let's give the floor to Mr. Tang Renjian to give a brief introduction.

Tang Renjian:

Ladies and gentlemen, good morning. Spring has returned to the land and farmers are busying themselves in the fields. On Feb. 22, Xinhua News Agency was authorized to release the full text of a document issued by the CPC Central Committee and the State Council that outlines key tasks to comprehensively push forward rural revitalization this year, also referred to as the No. 1 central document. This is the 19th document in a row issued by the central government to guide the work related to agriculture, rural areas and rural people since the turn of the millennium, which shows the determination of the CPC Central Committee and the State Council to prioritize agriculture and deliver benefits to rural people. Next, I will briefly introduce the document to you.

First, the background of drafting the document.

Since last year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, in dealing with affairs related to agriculture, rural areas and rural people, we have overcome such difficulties as the COVID-19 pandemic and natural disasters and got off to a good start in implementing the 14th Five-Year Plan (2021-2025). First, we have made steady progress in agricultural production. Another bumper harvest was achieved, with the output of grain reaching 1.37 trillion jin (685 billion kg), an increase of 26.7 billion jin (13.35 billion kg). The capacity of raising hogs was restored half a year ahead of schedule, and the market supply and prices of other major agricultural products were generally stable. Second, the income of farmers maintained growth. The per capita disposable income of rural residents reached 18,931 yuan, an increase of 9.7% in real terms, and a growth rate 2.6 percentage points higher than that of their urban counterparts. Third, the gains in poverty alleviation have been consolidated and expanded. The monitoring and assistance mechanism has been continuously improved and strengthened, and the working mechanism, policy measures and institutional teams have been put in place in an orderly manner. We have maintained the bottom line of ensuring no large-scale return to poverty. Fourth, we have taken solid steps to comprehensively promote rural revitalization. The development of rural industries has accelerated, a five-year action plan on improving the rural living environment has been launched, the level of rural governance has been continuously improved, the reform of rural areas has been advanced, and rural society has been stable and peaceful. The remarkable achievements in the reform and development of agriculture and rural areas have played an important role in turning a new page, responding to changes and stabilizing the overall social development.

2022 is an important year as China enters a new era of building a modern socialist country in an all-round way and strides toward its second centenary goal. At the end of last year, General Secretary Xi Jinping delivered an important speech at a meeting of the Standing Committee of the Political Bureau of the CPC Central Committee on issues related to agriculture, rural areas and farmers. He underscored factoring in the national strategic needs when responding to multiple risks and challenges, and ensuring the steady development of agriculture and rural areas. Tough measures and strong implementation are needed in dealing with affairs related to agriculture, rural areas and farmers. He also underlined and made arrangements on key issues including food security, preventing a large-scale return to poverty, and farmland protection. These provided the fundamental principles and an action plan for drafting the No. 1 central document in 2022, and doing a good job in affairs related to agriculture, rural areas and farmers at present and going forward. In response to major changes and the pandemic, both unseen in a century, and to promote the stable and healthy development of the economy and society, we must continue to comprehensively promote rural revitalization and give better play to the role of "agriculture, rural areas and farmers" as the anchor, paving the way for the 20th National Party Congress with actions.

Second, the main content of the document.

In the new era and new stage, the priority of the work related to "agriculture, rural areas and farmers" is to promote rural revitalization. Implementing the spirit of General Secretary Xi Jinping's important speeches, this year's No. 1 central document does not introduce new themes or new expressions. Instead, we have adhered to the overall goal of rural revitalization, prioritized stability and pursued progress while ensuring stability. The document outlines key tasks to advance rural revitalization in 2022. It comprises 35 articles in eight parts, and the main content can be summarized as "two bottom lines, three key areas, one reinforcement."

The "two bottom lines" refer to firmly upholding the two bottom lines of guaranteeing China's grain security and ensuring no large-scale return to poverty. It emphasizes that we will do our best to enhance grain production and the supply of vital agricultural products, strengthen protections to guard the red line of 1.8 billion mu (120 million hectares) of arable land, and ensure that the sown areas for grains remain stable and the full-year grain output stays above 1.3 trillion jin (650 billion kg). The document urges efforts to improve mechanisms for monitoring and assisting people at risk of falling back into poverty, and to promote areas that have been lifted out of poverty to consolidate and expand the achievements of poverty alleviation through development and ensure that there is no large-scale return to poverty.

"Three key areas" means to promote rural development, construction, and governance in a solid and orderly way. Regarding rural development, we will focus on the integrated development of the primary, secondary, and tertiary industries in rural areas and help farmers seek employment and raise their incomes locally or close to their homes. We will improve implementation mechanisms regarding rural construction and prioritize projects for farmers' well-being that provide universal access and meet farmers' fundamental and essential needs. As to rural governance, we will pay special attention to the construction of grassroots organizations creatively building effective platforms for cultural and ethical construction to maintain the safety and stability of rural society. 

"One reinforcement" means sticking to and reinforcing the Party's overall leadership over agriculture, rural areas, and farmers. In addition, the document emphasizes the responsibility in promoting all-round rural revitalization and scaling up policy guarantee and institutional innovation.

In summary, this year's document emphasizes the tasks, measures, and orientation for rural revitalization. It is both detailed and practical and clarifies the priorities and tasks for promoting all-round rural revitalization in 2022. 

Now, my colleagues and I are ready to answer your questions. 

Chen Wenjun:

Thank you, Mr. Tang. The floor is open. Please identify your media outlet before raising your questions. 

CCTV: 

Last year, the Central Economic Work Conference emphasized that primary products supply is a strategic issue. As grain is the most fundamental and key primary product, how should we ensure China's grain safety? Thank you. 

Tang Renjian:

Thank you for your question. General Secretary Xi Jinping has emphasized repeatedly that Chinese people should hold their rice bowls firmly in their own hands, with grains mainly produced by themselves. China's grain output has remained at 650 billion kilograms for seven consecutive years. We have ample supply and storage. China's grain prices have remained stable, and the market is steady, despite the sharp rise in grain prices globally and the impacts of the COVID-19 pandemic. This proves that China has maintained food security and that we are competent and confident to hold our rice bowls firmly in our own hands. 

However, this does not mean we can rest easy on grain security. From having enough food on one's table to eating well, from rice, flour, and oil to meat, eggs, and milk, Chinese people's consumption structure is upgraded all the time. However, the demand for food is still on the rise, and structural problems emerge constantly. Therefore, grain demand will remain in a tight balance for a long time, and the restraints in resources and the environment are increasing. Against this backdrop, we need to safeguard food security and conduct our work concretely and solidly. Therefore, we will work on the following three aspects. 

First, we will ensure that all the duties and responsibilities are fulfilled. When it comes to food security, the principles of comparative advantage and efficiency first do not always apply in China. The central government has made clear that grain-producing areas, grain-consuming areas, and areas that have a balance in grain production and consumption now have the responsibility of securing the sown areas for grains and grain output. Grain-producing areas should improve their comprehensive capacities in producing grain, grain-consuming areas should maintain and increase their self-sufficiency rates of grain, and areas that have a balance in grain production and consumption should ensure that they can realize grain sufficiency on their own. The State Council has approved this year's grain production goals, and we have done the breakdown and informed provincial (autonomous regions and municipal) governments of their respective goals. Next, we will make sure that both Party committees and governments shoulder the responsibility of ensuring food security. We will work with the related departments to formulate plans as soon as possible to evaluate the food security responsibilities of provincial Party committees and governments to make sure that they shoulder their responsibilities in this regard. 

Second, we will safeguard farmers' profits in grain production. After all, grain is produced by farmers. When farmers can make money by producing grain, the whole country's food is in safe hands. This year, we will work to improve the mechanism of guaranteeing farmers' profits in grain production and strive to make sure that farmers can break even with supportive policies and raise their income with agriculture-related businesses. On the policy front, we will reasonably raise the minimum purchase price for rice and wheat to continue implementing rice subsidy and subsidy policies for the producers of corn and soybean. We will also make sure that all rice, wheat, and corn producers in major grain-producing counties of major grain-producing provinces are covered by full-cost and income insurance. On the business front, we will focus on weak areas and vigorously develop agriculture services to raise farmers' incomes in producing grain. In all, we should make sure that farmers can make money and make as much money as possible through grain production. 

Third, we will strengthen the supporting capacity of fundamental elements. It is essential to implement the strategy of sustainable farmland use and innovative application of agricultural technology for national food security. We will firmly focus on the two key elements of seeds and farmland to consolidate the material foundation of grain production. In terms of seeds, last year, we launched a large-scale survey of agricultural germplasm resources, carried out the construction of a germplasm resource bank, and constantly strengthened the intellectual property protection of the seed industry. This year, we will make good use of policies to implement the action plan on energizing the seed industry. In the aspect of farmland, we have implemented a range of strong measures to protect the farmland. Both Party and government officials should take responsibility to ensure that the total area of China's arable land stays above 120 million hectares. We will ensure that the arable land is mainly used for the production of grain, agricultural products such as cotton, oil, sugar, and vegetables, as well as forage crops. Permanent basic farmland will be mainly used for grain production and all high-quality farmland will be used for grain production in principle. We mentioned three concepts of different levels here: arable land, permanent basic farmland, and high-quality farmland. In addition, in terms of agricultural machinery equipment, we should shore up weak links by regions and varieties and strengthen the technology and equipment support for modern agriculture. Thank you.

CRNTT:

This year is critical for pushing forward rural revitalization in an all-round way. According to the No. 1 central document, what new arrangements have been made in terms of working mechanisms and approaches to ensure that all tasks will be carried out in an active and steady manner? Thank you.

Tang Renjian:

We have completed all poverty eradication targets and tasks. We are now turning to the new goal of advancing rural revitalization in an all-round way. General Secretary Xi Jinping said that it's a historic shift of focus in the work related to agriculture, rural areas, and farmers. We have an effective experience in our poverty alleviation efforts, that is, a sound and improved working mechanism. Therefore, we will also learn from this good experience when pushing forward rural revitalization in an all-round way.

In the new era, as I mentioned at the beginning of this press conference, the focus of the work related to agriculture, rural areas, and farmers is to advance rural revitalization in an all-round way, which is also the focus of this year's No. 1 central document. In the new era, rural revitalization and the work related to agriculture, rural areas, and farmers contain similar subjects and extend over a similar range. Therefore, they should not be separated in our practical work. At present, it is crucial to be steadfast in our work, and to use strong actions.

First, we will ensure that all duties and responsibilities are fulfilled. It is a systematic project to advance rural revitalization in an all-round way, featuring integrated arrangements. It is not a specific task for a certain department or a certain sector. It needs the combined efforts of the Party and all of society, and of all departments and localities. In the next step, we will speed up formulating measures for the implementation of the rural revitalization accountability system, clarify responsibilities of the departments of the CPC Central Committee and the central government in advancing rural revitalization, and implement the specific requirements for Party secretaries at the five administrative levels of province, city, county, township, and village, to take charge of rural revitalization, so as to pool all efforts to create great synergy. This year, we will also carry out the performance evaluation on the work to promote rural revitalization strategy for provincial Party and government leadership groups and officials. Meanwhile, we will also improve the evaluation system for officials at the levels of city and county and ensure that all the duties and responsibilities are fulfilled.

Second, we will improve our mechanisms. We will use the effective experience and practice formed in poverty alleviation for promoting rural revitalization in accordance with new needs. To be specific, our work will go hand in hand with the implementation of regulations for the country's rural work issued by the CPC Central Committee and the law on the promotion of rural revitalization promulgated last year. We will make efforts to improve an all-round promotion mechanism for rural revitalization in terms of responsibility fulfilment, organization and promotion, social mobilization, factor guarantee, assessment and evaluation, work reports, and supervision and inspection, widely mobilizing the people and bringing together the resources needed.

Third, we will improve our work style. Different to poverty alleviation, rural revitalization is a prolonged campaign rather than a tough battle, and is also a career that covers all fields and all people on all fronts. We should give up the idea of accomplishing our tasks in one battle, not set unrealistic targets, avoid eagerness for quick results by going beyond the development stage, or even aiming high and going all out at random. All these won't work. We should resolutely oppose the practice of favoring form over substance in this regard. We should work in accordance with the actual situation of different places, respect the underlying trends of rural areas, and steadily promote our work with a more mature and more well-established system. We will carry out large-scale training to study General Secretary Xi Jinping's major expositions on the work related to agriculture, rural areas, and farmers. At present, there are elections for officials at different levels, including people working at the grassroots level. Some new officials have taken office. After taking up their posts, they should learn deeply and thoroughly understand major expositions by General Secretary Xi Jinping on the work related to agriculture, rural areas, and farmers, and then make practical efforts. Therefore, we will study further by carrying out large-scale training. Only in this way can we keep to the right direction of policies, effectively improve our work style, enhance the policy level of the work related to agriculture, rural areas, and farmers and improve our working ability.

Fourth, we will strengthen the building of organizations. This year's No. 1 central document emphasizes that rural work leading groups under Party committees at all levels should undertake both the duty to consolidate and extend gains in poverty alleviation, and promote all-round rural revitalization. Now at the central level, the Office of the Central Rural Work Leading Group, the Ministry of Agriculture and Rural Affairs and the National Rural Revitalization Administration are jointly promoting the all-round rural revitalization, under the leadership of the Central Rural Work Leading Group. What roles are each of these respective authorities playing? First, the Office of the Central Rural Work Leading Group is taking the lead in carrying out the strategy. Second, the Ministry of Agriculture and Rural Affairs is responsible for coordinating different departments, as enshrined in the Law on the Promotion of Rural Revitalization. Third, the National Rural Revitalization Administration is in charge of putting measures in place. While their roles may be different, there is no way to separate them from each other. We should join together to promote rural revitalization in a well-organized and systematic manner, from different perspectives and at different levels.

Thecover.cn:

Last year, China experienced repeated challenges from natural disasters and the pandemic. What achievements have been made in consolidating and extending the progress in poverty alleviation? And what measures will be taken to prevent a large number of people from falling back into poverty? Thank you.  

Liu Huanxin:

Thank you for your attention to the poverty alleviation work. General Secretary Xi Jinping attaches great importance to consolidating the achievements of poverty alleviation, stressing that this is the premise of rural revitalization, and urged continuous efforts to ensure those lifted out of poverty can live better lives. Over the past year, we have implemented the decisions and plans of the CPC Central Committee and the State Council. Solid efforts have been made in consolidating and extending the gains in poverty alleviation and coordinating them with the promotion of rural revitalization. Our work has been in the following aspects: First, we prevented risks. The dynamic monitoring mechanism to prevent people from falling back into poverty has been established in an all-round manner. The mechanism has eliminated the risks of nearly 70% of the people monitored, and the rest of them have been provided with support measures and can get rid of the risks in the future. We have provided timely support to people that have been lifted out of poverty and then affected by natural disasters, and thus prevented them from falling back into poverty because of disasters. Second, we coordinated work. Support policies that were carried out during the course to eradicate poverty have been adjusted and optimized by category to formulate 33 policies that dovetail with rural revitalization. A total of 160 counties were listed as key counties for national rural revitalization, and favorable policies have been leveraged in 14 sectors. We ramped up eastern-western collaboration, designated assistance, and follow-up support for resettled population. We completed organization of agencies for promoting rural revitalization. Evaluation work has been carried out to ensure the work to consolidate and extend gains in poverty alleviation dovetails with that of promoting rural revitalization. Such work has been promoted in an orderly manner. Third, we boosted development. The central government arranged 156.1 billion yuan in subsidies to promote rural revitalization, which is 10 billion yuan more than the previous year, with over half of the fund invested in developing industries. Some 31.45 million people lifted out of poverty found jobs, up by 1.26 million over last year, representing an increase of 4.2%. The per capita net income of people lifted out of poverty reached 12,550 yuan, an increase of 1,810 yuan or 16.9% over the previous year. In general, we have consolidated and extended poverty alleviation progress in 2021 and ensured that people do not sink back into poverty in large numbers.

Next, we will fully implement the guiding principles laid out by General Secretary Xi Jinping and the decisions and plans of the CPC Central Committee and the State Council. Solid efforts will be made to ensure departments take their responsibilities, implement policies and carry out work to consolidate and extend poverty alleviation progress. We will work to ensure that people lifted out of poverty live a better life, and ensure that people do not sink back into poverty in large numbers. Our major work will be in the following aspects:

First, efforts will be made to improve the mechanism for monitoring and assisting people at risk of falling back into poverty. Our work will be carried out using a three-pronged approach. First, we will make it more targeted. We will carefully identify the groups that need to be monitored. All rural people at risk of returning to or falling into poverty and those affected by sudden and serious difficulties should be included in the monitoring mechanism. Second, we will provide support earlier. Those experiencing serious financial difficulties arising from housing, education, employment, illness, disaster and epidemic will be provided with support and assistance in a timely manner, so the risk of them returning to or falling into poverty will be nipped in the bud. Third, we will make procedures more simplified. We will remove the barriers that hamper the flow of data among different monitoring platforms, shorten the time and improve the efficiency of the mechanism for monitoring and assisting people at risk of falling back into poverty.

Second, efforts will be made to increase the incomes of people that have been lifted out of poverty. We will focus on providing employment support. Work on consolidating and extending gains in poverty alleviation will be driven more by development. We will prioritize the transformation and upgrading of industries. We will gradually increase the proportion of the central government subsidies for rural revitalization for industrial development. We will step up efforts to address weaknesses in technology, facilities and marketing, and increase the operating income of people that have been lifted out of poverty. We will take every step possible to stabilize employment and ensure more people lifted out of poverty can find jobs through such methods as organizing labor export, boosting employment in paired-up factories, and optimizing public welfare posts for poverty alleviation.

Third, efforts will be made to provide stronger assistance in key areas. In terms of key counties for national rural revitalization, we will compile implementation plans. We will also pool resources to build a series of projects to address weaknesses and boost development in the counties so they will gain a stronger capacity for self-development and have a more solid and sustainable foundation for poverty alleviation. In terms of resettlement areas, we will continue increasing follow-up support with regard to expanding employment, infrastructure construction and public services, so as to ensure smooth resettlement, and make sure that those involved have the means to better themselves.

Fourth, we will make efforts to promote the implementation of assistance policies in regions lifted out of poverty. We can't slam on the breaks as soon as we win the battle against extreme poverty. We need to ensure that major assistance policies will remain unchanged and keep up the support intensity to give them a leg up to get them going. Therefore, we will evaluate the effectiveness of the policies this year to promote the implementation and ensure that they can achieve results, which will ultimately provide support and guarantee for consolidating and expanding the achievements in poverty alleviation. 

China Daily:

This year's No. 1 document pointed out that strong measures shall be implemented to protect the arable land. What strong measures will be adopted regarding arable land construction and protection? Thank you. 

Wu Hongyao:

This is a very important question. The arable land serves as the lifeline of grain production. General Secretary Xi Jinping has attached great importance to protecting arable land. He has made important instructions overt it on various occasions, noting that the requirements for the protection of arable land must be further clarified to ensure that China's 1.8 billion mu (120 million hectares) of farmland is a reliable figure and that all of the farmland is fertile. This year's No. 1 central document has paid more attention to the cultivation and protection of arable land, and it has rolled out a series of strong measures, which can be summarized as "ensuring quantity, improving quality, regulating the utilization and tapping into the potential."

To ensure quantity, we will firmly stick to the red line of 1.8 billion mu of arable land. Priorities lie in the following three aspects. First, we will draw redlines for designating arable land and permanent basic cropland, protecting the ecosystems and delineating boundaries for urban development. Second, we will specify the task quotas and targets that authorities at all levels need to achieve to protect arable land and permanent basic farmland, with every single piece of the land being marked with details. Third, some responsibility statements will be signed between central and local authorities, setting up specific targets for protecting arable land, which will be taken as mandatory indexes. Finally, we will ensure a stringent mechanism with a "one-vote veto" system and a lifelong accountability system. 

In terms of improving quality, we will ramp up efforts to improve the quality of arable land. First, we will continue to take high-standard farmland construction as our priorities, aiming to complete the construction of 100 million mu of high-standard farmland and 400 million mu of high-efficiency water-saving irrigation areas. Moreover, we will also step up efforts to upgrade medium-and low-yield farmland to improve the fertility of arable land. Second, we will make great efforts to protect chernozem soils and further promote national chernozem soils protection projects to adopt conservation tilling techniques on 80 million mu of chernozem soils. Third, we will strengthen the entire process of regulation over balancing the occupation and replenishment of arable land, and ensure that the replenished land can be used in a long-term and stable manner, which will ensure that the capacity of the replenished land can be equivalent to those have been occupied. 

In terms of regulating the utilization, we will strengthen the regulation over the use of arable land. First, those practices to turn the arable land into construction land shall be strictly limited. We will enhance law enforcement and regulation and punish those illegal practices of using the arable land for non-farming purposes. Second, we will hold tight control over converting arable land into other agricultural land. Third, we will ensure that the use of arable land should strictly follow specific priorities that they are supposed to be used. As Mr. Tang said, the arable land should be used primarily for the production of agricultural products such as grain, cotton, oil, sugar, and vegetables, as well as forage grass and fodder. The permanent basic farmland is mainly used for grain production, and all the high-standard farmland is theoretically used for grain production. 

We will step up efforts to tap into the land potential to increase the quantity of arable land. We will support the practices of converting those qualified saline-alkali soil and other potential land resources into arable land in a proper and orderly manner. While protecting the ecological environment, those idle land and abandoned land suitable for development can be used to develop facility agriculture to break the resource constraints in terms of arable land, light, and heat. Thank you.  

China County Times:

One of the priorities of rural revitalization is to help boost the incomes of populations through industrial development. What are the key areas and directions in this year's No. 1 central document on promoting rural industrial development? Thank you.  

Tang Renjian:

This question is crucial, as industrial revitalization stays at the top of the "five priorities" of rural revitalization. Therefore, I'd like to invite Mr. Wu to answer this question.

Wu Hongyao:

General Secretary Xi Jinping stressed that thriving business is the basis for resolving all issues facing rural areas. Therefore, industrial revitalization stays at the top of the "five priorities" of rural revitalization. This year's No. 1 central document sets out precise requirements for promoting rural development by industrial development, aiming to step up efforts in three aspects. 

First, efforts should be made to promote the integrated development of the primary, secondary, and tertiary industries in rural areas. Rural industries have their roots in agriculture. While making farming and breeding industries stronger, we will fully engage the multiple functions of agriculture, realize the multiple values of rural areas, and develop the three major industries of farm-produce processing, rural leisure tourism, and rural e-commerce. Vertically, we will build a comprehensive agricultural industry chain, facilitate the expansion of industries to the back end and downstream, and shift the focus from selling initial agricultural products to promoting brands, with the aim of increasing production values and industrial efficiency. Horizontally, we will advance the in-depth integration of agriculture with leisure, tourism, health care, ecology, culture, elderly care, and other industries to enrich the varieties of rural industries and enhance the value of the rural economy.

Second, efforts should be made to develop county-level industries that can help boost farmers' incomes. We will develop county-level industries with obvious comparative advantages which can drive agricultural and rural prosperity and create employment opportunities to ensure that every county has at least one characteristic industry. To achieve the coordinated development of county-level industries, we will scientifically arrange production, processing, sales, consumption, and other links, locate them in the most suitable places, and form a spatial industrial layout with a reasonable division of labor among counties, townships, and villages. Meanwhile, we will leverage the role of industrial parks as the platform, guide the transfer of farm-produce processing industry to counties and main production areas, and build characteristic industrial clusters featuring close coordination between urban and rural areas.

Third, efforts should be made to help farmers get jobs and increase incomes locally or in nearby regions, which is the purpose of industrial development in rural areas. We must not make business owners better off while leaving farmers in poverty. Nor should we exclude farmers from the industrial chain. We encourage industrial and commercial capital to invest in rural areas, give play to the advantages in capital, technology, management, and brand, and improve the interest linkage mechanism to help farmers gain prosperity through complementary strengths of industrial chains and an effective division of labor. We will also support commercial organizations to provide agricultural services such as contract farming, processing, logistics, and marketing so that farmers can share more benefits from the growth of industries. Thank you.

Economic Daily:

Last year, large areas of winter wheat were not planted on time due to the autumn floods. What impact will it have on this year's summer harvest? What measures will be taken to ensure stable and high yields? Thank you.

Tang Renjian:

This journalist has a keen insight. The questions involve the biggest challenge in our present work related to agriculture, rural areas, and farmers. It is also our chief concern now.

Due to abnormal autumn floods, more than 7.3 million hectares of autumn and winter wheat across Hebei, Shanxi, Shandong, Henan, and Shaanxi provinces were not planted on time. How long was the sowing date delayed? For around half a month. The delay affected one-third of the total acreage, which is a large scale never seen before. Thanks to careful cultivation, the acreage of winter wheat is as large as that of last year. However, the seedling growth becomes complicated and we still face grave challenges in reaping a bumper summer harvest. Summer harvest is the first of China's annual grain production, which accounts for more than a fifth of the annual grain output and 40% of its annual staple food production. Summer grain production is of great significance for ensuring supply, stabilizing expectations, and increasing confidence. Confronted by the complicated situation, we will make every effort with a strong determination to ensure a bumper summer harvest and get a good start for high grain yields for the whole year.

First, we will strengthen wheat field management. This is a fundamental task. Now it's around 100 days before the summer wheat harvest. Our first priority is to maximize yield recovery by adopting technologies and measures at the three key stages of wheat growth, namely green-up, stem elongation, and grain-fill. At the green-up stage, the critical measure is applying fertilizers to boost the growth of weak seedlings and increase the number of panicles; at the stem elongation stage, the critical measure is resisting drought and freezing to boost the growth and increase the number of grains; at the grain-fill stage, the critical measure is applying a variety of pesticides, germicides, and fertilizers to increase the weight of grains. We have provided relevant local governments with detailed information about the distribution of late-planted wheat based on the types of seedling growth, which will serve as a basis for targeted guidance. Recently, authorities of agriculture and rural affairs have mobilized large groups of personnel to concentrate on the frontline of wheat production and offer targeted services for designated regions. They are working hard to maximize the yields of wheat sown at the right time and prevent and minimize the reduction in the yields of late-planted wheat.

Second, we need to do a good job in disaster prevention and mitigation. For one, we need to prevent natural disasters. Due to the influence of the La Nina phenomenon, extreme weather is more likely to occur this year. We will focus on preventing disasters such as spring cold, late spring cold, summer drought, and floods that have a great impact on food production. We will further detail and materialize the plan for disaster prevention and mitigation to achieve a bumper harvest, and make material reserves and technical preparations as soon as possible. We will make full and good use of the disaster relief funds for agricultural production to help farmers take the initiative to avoid disasters, scientifically prevent disasters, and minimize disaster losses. For the other, we will make disease and insect pest control. Because there was a lot of rain last year and the soil moisture was good, there are advantages, but there are also disadvantages, including that the risk of pests and diseases is relatively high. Therefore, this year, crop diseases and insect pests are expected to appear more and more frequently. Wheat will mainly suffer from stripe rust, scab, etc. This year, there will also be stem rot, all because of the large amount of water. We will focus on prevention and control of these major pests and diseases, implement "integrated monitoring, general coordination, one-map command," (command the battle against pests and disease based on a smart map that integrates and shows all the visual information) and vigorously promote unified prevention and treatment, joint prevention and control, and emergency prevention and control so as to achieve the goal of rescuing food from insects.

Third, we need to do a good job in preparing for spring farming. Not long ago, the national work conference on spring agricultural production was held to fully deploy the spring plowing and preparation work. The central government is also currently studying the distribution of agricultural subsidies to support spring farming. We will take the implementation of grain sown acreage as the top priority of spring plowing and preparation work, consolidate the production of early rice and stabilize the acreage of autumn grain, ensure that the acreage of grain can be allocated to households and fields, and consolidate the acreage coverage foundation for a bumper grain harvest throughout the year. At the same time, we will work with relevant departments to ensure the supply of agricultural materials, and to schedule the demand for seeds, fertilizers, and medicines during spring plowing as soon as possible. We will speed up the efforts to introduce agricultural materials into stores and villages, stabilize the price of agricultural materials as much as possible, and strengthen quality supervision in order to meet the needs of spring plowing work. Thank you.

China Rural Magazine:

The fifth plenary session of the 19th CPC Central Committee proposed to implement rural development actions; put rural development in an important position in socialist modernization; optimize work, living, and ecological space; continue to improve village conditions and living environment; and build beautiful and livable countryside. Please let us know what are the new layouts and new requirements for rural development in the No. 1 central document this year? Thank you.

Liu Huanxin:

The implementation of rural development actions is a major deployment made by the fifth plenary session of the 19th CPC Central Committee, and an important carrier and key point for comprehensively promoting rural revitalization. General Secretary Xi Jinping has emphasized that rural development must be done quickly, steadily, and persistently. The rural development action plan will be released soon. This year's No. 1 central document, on the basis of summarizing the practices of various regions, put forward clearer requirements for the implementation mechanism of rural development, focusing on the "three adherences."

The first is to adhere to the focus on the improvement of people's livelihoods that is inclusive, basic, and fundamental. A basic goal of rural development is to improve rural production and living conditions, and strive to allow farmers to gradually live a modern and civilized life in their lands. It says we don't need to set the bar too high on goals and standards, while levels, standards, and grades can be adapted to actual conditions of different places, high or low. The focus is to ensure basic functions and to solve outstanding problems. It asks to strengthen infrastructure construction in key areas such as rural roads, water supply, electricity, network, and housing security, continue to improve the rural living environment. In particular, those facilities that are beneficial to both production and life, such as rural roads, storage cold chain, and logistics facilities, should be prioritized and their construction accelerated.

The second is to adhere to the understanding that we develop rural areas for farmers. To promote rural development, we must fully respect the wishes of farmers. If farmers expect something, we have to do it quickly. If farmers are willing to do something, we should lead them to do it. If they don't want to do something, we should put it off and slow down. We should fully understand the long-term and complex nature of rural development, grasp the timeliness, scale, and effects of the work, adhere to the principle of quality over quantity, and actual effects over progress – we want good quality rather than quick pace. When doing construction based on the village, we must pay attention to the protection of traditional villages; retain the original appearance, style, shape, and texture of the village; retain the green mountains and lucid waters; and retain the nostalgia. We must not blindly demolish old villages and build new ones, or not go beyond the development stage to engage in large-scale financing, large-scale development, and large-scale construction. We should strictly regulate the village-dismiss and village-merger.

The third is to adhere to bottom-up, villager autonomy, and farmers' participation. Farmers are the main part of production and life in rural areas. In rural development, targets and tasks cannot be set from the top down. The key is to mobilize and organize farmers and give full play to the main role of farmers. What farmers should do should be left to be done by farmers themselves as much as possible, especially the things that farmers do inside their households as well as in front of and behind their houses, such as rural toilet renovation, courtyard sanitation, and greening and beautification – these are mainly farmers' own things, and we can delegate and mobilize the farmer masses to do them. The government should focus on doing things that farmers can't do or can't do well, such as creating water supply security and sewage treatment for rural toilet improvement, or the collection, transfer, and centralized treatment of domestic garbage and the improvement of the public environment of the village – the government must do these things well. Thank you.

Tang Renjian:

Mr. Liu Huanxin just gave a wonderful answer to the above question. Now I would like to conclude by making two points that I think are most important and worth our attention after more than one year of practice and implementation of the rural revitalization strategy across the board.

First, in terms of working philosophy, we should uphold the principle that rural revitalization and rural development are for rural people. Second, in terms of methodology, in accordance with the instructions of General Secretary Xi Jinping, we should adopt an approach in which quantity gives way to quality, the speed of progress gives way to solid outcomes, and pursuit of quick results gives way to good results. These are the two most important points.

Farmers' Daily, farmer.com.cn:

Rural governance has always been a focus of public concerns. What are the priorities for rural governance in the No. 1 central document this year? And what measures will you take? Thank you.

Tang Renjian:

The National Rural Revitalization Administration is in charge of concrete work regarding rural development and rural governance. Let's give the floor to Mr. Liu Huanxin.

Liu Huanxin:

General Secretary Xi Jinping has attached great importance to rural governance, stressing that we should innovate the system to achieve good governance in rural areas. Rural governance is the cornerstone of China's state governance and an important part of rural revitalization. This year, the No. 1 central document outlines three priorities for rural governance.

First, we should strengthen the development of rural community-level organizations. The success of rural areas hinges on the Party, which is our biggest institutional strength. We should focus on team-building, strengthening the function of county-level Party committees in promoting Party building at township and village levels. After the elections at township and village levels, we will carry out extensive training on the theme of rural revitalization, helping resident first Party secretaries and working teams play their role to the full. We will also strengthen the leading groups, and implement a gridded management model, digitalization empowerment and refined services. We should focus on mechanism establishment, implementing in real earnest a "4+2" system. Here, "4" means four steps: proposals should be put forward by the Party branch, jointly discussed by the village committee and the Party branch, and deliberated by Party members, and resolutions should be adopted by villagers' representatives; "2" means transparency on two levels: resolutions and implementation results should be made known to the public. By doing this, we will make sure that all the important affairs and problems at village level will be studied and discussed by village Party organizations, and their leadership over various other village-level organizations will be enhanced and improved. Meanwhile, a rural governance model which combines self-governance, rule of law, and rule of virtue will be improved under the leadership of Party organizations. We should focus on supervision, carrying out extensive disciplinary inspections for city and county-level Party committees. We will strengthen communication and coordination between grassroots disciplinary inspection commissions and committees for supervision of village affairs and ensure effective dovetailing to enhance the supervision over village officials.

Second, we should promote cultural and ethical progress. The key is to explore new ways to enable the voice and call of the Party to reach thousands of rural households in a form that is more acceptable and easily understandable to rural people. Nowadays, rural areas are still underdeveloped in culture. We will enrich the cultural life of rural people, increase the supply of cultural and intellectual products, and support farmers to actively organize and participate in cultural activities and sports. Low-cost, participant-friendly, healthy, and positive recreational activities will be introduced for rural people to enjoy — although not necessarily high-end, ostentatious ones — as long as they can produce the desired effect. We will also strengthen focused efforts to tackle problems such as high bride price, cash gift competition, luxurious funerals, and lack of family support to the elderly in order to promote a positive cultural environment in civil and neighborly communities that features good family traditions and simple and honest people.

Third, we should explore new models and new platforms. In recent years, we carried out trials and demonstrations for developing a rural governance system and explored some good approaches, including using reward points and task lists. Next, we will step up efforts to promote the application of such approaches and set up clearly detailed standards, regulated procedures, and evaluation mechanisms in order to yield solid results in rural governance and deliver tangible benefits for farmers. Thank you.

Yicai:

In recent years, China's annual import volume of soybeans amounts to about 100 million metric tons. Although the figure in 2021 declined, the total amount was still huge. What measures does the No. 1 Central Document propose to enhance the production capacity of soybeans and oil plants? Thank you.

Tang Renjian:

Currently, despite of the status of tight balance between supply and demand of grain in China, people don't have to worry about not having enough food. There is a structural problem that China still experiences low self-sufficiency in soybeans and oil plants. Due to the improvement of living conditions and the growth of animal husbandry, China's demand for soybeans has increased remarkably, and its imports have seen rapid growth. As you mentioned, China's import volume of soybeans amounted to 100 million metric tons in 2020 and over 90 million metric tons in 2021. Currently, China's domestic soybeans can meet the need of food consumption. That is to say that our consumption of tofu and other soybean products is well guaranteed. Imported soybeans are mainly used to make edible vegetable oil and plant proteins for animal feed of husbandry. Looking forward, we will make full use of domestic and international markets and their resources to increase the supply of soybeans and oil plants. But more importantly, we need to focus on self-improvement and make more efforts on structural optimization. We need to be more determined in enhancing the production capacity of soybeans and oil plants and plant oil crops as much as we can in a bid to have more control over the edible oil security of Chinese people. We need to make efforts mainly in the following three aspects:

First, we need to proactively restore soybean planting areas in northeast China. As we know, the northeastern region is traditionally a major soybean-producing area. We will improve the policy on subsidizing corn and soybean production, support the region to carry out reasonable crop rotation of corn and soybeans and encourage farmers to plant soybeans this spring. In the meantime, some areas in northeast China, mainly those with the problem of groundwater overexploitation, can plant more soybeans by turning paddy fields into dry land. The northeastern region used to grow rice many years ago, but the conditions in some areas were not suitable. Thus, we can resume soybean planting in these areas.

Second, we need to proactively promote corn-soybean strip cropping. Instead of planting alternate rows of corn and soybeans, people often plant two rows of corn, alternating with four rows of soybeans in pilot zones. Thus, it is called strip cropping, and both plants can receive adequate natural sunlight to grow. The corn-soybean strip cropping has been piloted for many years, especially in southwestern regions like Sichuan province. Currently, there are over seven million mu (about 466,667 hectares) of strip cropping areas in China, and the planting model and techniques have grown mature basically. The biggest advantage of strip cropping is that it can solve the problem of exclusiveness between corn and soybeans because in the past, people could only plant one of them in the same area, but not the both. With strip cropping, we can make sure that corn yield does not decline on the whole and realize its stable production. Meanwhile, an additional 100 to 150 kilograms of soybeans can be harvested per mu every harvest season. This is pretty good news for farmers. This year, we plan to further promote this method and carry out corn-soybean strip cropping in suitable areas such as those along the Yellow River, Huai River, and Hai River, as well as southwest and northwest China. Still, because this method was only experimented in pilot areas and many regions are not familiar with it, we need to provide relevant assistance such as grain varieties, equipment, and techniques. With this in mind, the central government has allocated special subsidies to support . Additional funds will be taken from the commercial services sector and allocated to large-scale business entities that undertake relevant tasks so as to increase their willingness to promote corn-soybean strip cropping. Besides, we are also working to include strip cropping in the scope of agricultural insurance in some areas.

Third, we need to proactively enhance the production capacity of oil plants. There are many oil plants besides soybeans, such as rapeseed along the Yangtze River, peanuts in the northern and northwestern regions and North China, and camellia in the southern regions. All these need further development. In terms of rapeseed, the winter fallow in south China has huge potential. In 2021, more than five million mu of such fields were added, and we plan to expand more this year. As for peanuts, the key planting regions include areas along the Yellow River, Huai River, and Hai River and the agro-pastoral zone in the north, also known as regions along the 400 mm precipitation line. We need to promote crop rotation of corn and peanuts here and stabilize and expand the areas of land under peanuts cultivation. Regarding camellia, we need to focus on expanding its farming areas. Despite the substantial production potential, the output volume of camellia is very little nowadays, and we need to improve farmlands with a middle or low output. In addition, there are also other special oil plants such as sunflowers, flax, and sesame, and we need to promote their growth based on the actual local conditions.

In conclusion, with a variety of oil plans and diversified measures, we hope that China's self-sufficiency of soybeans and oil plants could see a comparatively huge improvement in five to 10 years. Thank you.

Chen Wenjun:

Since there are no further questions, today's press conference is hereby concluded. Thank you to all the speakers and friends from the media. Goodbye.

Translated and edited by Zhang Lulu, Ma Yujia, Zhou Jing, Huang Shan, Zhang Liying, Wang Yanfang, Zhang Rui, Wang Yiming, Li Xiao, Zhu Bochen, Wang Qian, Yuan Fang, Cui Can, Yang Xi, Gong Yingchun, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Liu Kun, minister of finance

Yu Weiping, vice minister of finance

Xu Hongcai, vice minister of finance

Chairperson:

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

Date: 

Feb. 22, 2022

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are delighted to be joined by Mr. Liu Kun, minister of finance, who will introduce China's fiscal reform and development, and answer your questions. Also present at the press conference today are Mr. Yu Weiping and Mr. Xu Hongcai, both vice ministers of finance.

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

Liu Kun:

Ladies and gentlemen, friends from the media, good morning. I am glad to meet you ahead of the "two sessions." On behalf of the Ministry of Finance (MOF), I would like to express my heartfelt gratitude to friends from the media for your constant interest and support regarding China's fiscal development. Now, I will introduce the fiscal work in 2021.

2021 was a landmark year in the history of our Party and our country. Faced with complex and severe domestic and international contexts, as well as multiple risks and challenges, the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core has rallied and led the Chinese people of all ethnic groups to forge ahead, making major achievements in various undertakings of the Party and the country. The MOF has followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and borne in mind the country's most fundamental interests. In accordance with the decisions and plans of the CPC Central Committee and the State Council, we have implemented a proactive fiscal policy, taken solid steps to ensure stability on the six fronts (employment, finance, foreign trade, foreign investment, domestic investment and market expectations) and security in the six areas (residential employment, people's livelihood, market entities, food and energy, stability of industrial and supply chains, and grassroots operations), and worked to achieve new progress in creating a new development dynamic and promoting high-quality development. Revenue in the national general public budget reached 20.25 trillion yuan, an increase of 10.7% over the previous year, and in line with the budget. Expenditure in the national general public budget reached 24.63 trillion yuan, an increase of 0.3% year on year, providing a solid fiscal foundation for a good start to the 14th Five-Year Plan (2021-2025) period.

First, we rolled out stronger policies to sustain steady economic recovery. General Secretary Xi Jinping emphasized that scientific macro control and effective government administration are the intrinsic requirements for exploiting the advantages of the socialist market economy system . In 2021, we enhanced cross-cycle adjustment, strengthened unified management of funds and maintained the necessary scale of government expenditure to ensure major economic indicators stayed within an appropriate range. We issued 3.65 trillion yuan of local government special purpose bonds and adjusted the pace according to economic developments, thus playing an important role in maintaining stable growth and tackling areas of weaknesses. We implemented targeted tax and fee reduction policies and made further tax and fee cuts of about 1.1 trillion yuan to help enterprises overcome difficulties and achieve development. We worked to normalize the straight transfer of funds and expand coverage of the mechanism. Funds totaling 2.8 trillion yuan went straight to primary-level governments, which in turn benefited enterprises and the people. Meanwhile, we implemented the requirement for the Party and government institutions to keep tightening their belts, continued negative growth in central government expenditure, and channeled saved funds to bolster financial support for local governments to improve the people's well-being. We improved the quality, efficiency and sustainability of the proactive fiscal policy to offset downward economic pressure and keep the fundamentals of the overall economy stable.

Second, we supported the development of science and technology and promoted the upgrading and stabilization of industrial and supply chains. General Secretary Xi Jinping emphasized that the essence of the new development dynamic is realizing a high level of self-reliance . The MOF implemented the innovation-driven development strategy. We continued to invest more in science and technology. In 2021, we spent 0.97 trillion yuan on science and technology, an increase of 7.2% over the previous year, to provide strong support for the development of integrated circuits, new energy vehicles, and other industries as well as major breakthroughs in core technologies in key fields. At the same time, we innovated and improved policies and mechanisms. We reformed and optimized the management of research funding allocated by the central government, introduced new preferential tax and fee policies, granted subsidies for small- and medium-sized enterprises (SMEs) with high growth potential, advanced technology and strong market competitive edge, and implemented an open competition mechanism to select the best candidates. These measures are aimed at stimulating the innovation and creativity of researchers and enterprises.

Third, we have increased investment in living standards, and people's sense of fulfillment, happiness, and security have been significantly enhanced. General Secretary Xi Jinping emphasized that the people are the country. As we have fought to establish and consolidate our leadership over the country, we have in fact been fighting to earn and keep the people's support and to ensure them a good life. The MOF has always adhered to the people-centered philosophy of development, coordinated the needs of the people and the possibility of financial resources, and continued to strengthen fundamental well-being for all and ensure there is a cushion in place for those most in need. In 2021, public spending on education stood at 3.76 trillion yuan, up 3.5% over the previous year.

Meanwhile, public expenditure on social security and employment amounted to 3.39 trillion yuan, up 4% over the previous year. Despite enormous public spending in 2020 due to the COVID-19 pandemic, we still ensured high spending on improving people's lives in 2021. Therefore, the scale of expenditure in 2021 was basically the same as that of the previous year, and multiple livelihood policies were effectively implemented.

Fourth, we have promoted the coordinated development of urban and rural areas and further optimized the development pattern. General Secretary Xi Jinping emphasized that coordination is the means, end, and evaluation criterion of development. The MOF firmly followed the new development philosophy and ensured that the transfer payments, fiscal and tax policies, and other instruments were given full play to improve the balance and coordination of urban and rural regional development. In 2021, the central government's transfer payments (including tax rebates) made to local governments topped 8 trillion yuan, with a priority on areas with financial difficulties and underdeveloped regions, so as to enhance the financial guarantee capability for the coordinated development of urban and rural areas. We worked to ensure the effectiveness of major assistance policies and supported consolidating and expanding the country's poverty alleviation achievements and guaranteeing a smooth transition into rural vitalization. In addition, we implemented major national regional strategies such as developing the Yangtze River Economic Belt and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and promoted coordinated regional development to a higher level and better quality.

Fifth, we have strengthened ecological protection and continue to make our skies bluer, waters clearer, and mountains greener. General Secretary Xi Jinping emphasized that lucid waters and lush mountains are both natural and economic wealth. We must keep in mind that lucid waters and lush mountains are invaluable assets. The MOF resolutely implemented Xi Jinping's Thought on Ecological Civilization, and comprehensively employed policies and measures such as fiscal fund guidance, tax adjustment, and government green procurement to support resource conservation and ecological, environmental protection, and vigorously promoted the transition and economic and social development featuring green and low carbon. In 2021, the national fiscal investment in ecological and environmental protection reached 821 billion yuan. In addition, we introduced an action plan to support the establishment of a horizontal eco-compensation mechanism in the entire Yangtze River Basin, strengthened the role of taxation in regulating the ecological environment protection, and improved government green procurement policies.

Sixth, we have deepened fiscal and tax system reforms and strengthened the supervision of fiscal management. General Secretary Xi Jinping emphasized that good fiscal and taxation systems are the institutional guarantee for improving resources allocation, maintaining market unity, promoting social equity, and realizing enduring peace and stability. Therefore, playing an active and leading role, the MOF has deepened fiscal and taxation reforms speedily and steadily and expedited the building of a modern public finance system. In 2021, we promoted tax legislation such as value-added tax, further deepened the reform of the budget management system, carried out the evaluation of transfer payment and major expenditure policies, promulgated administrative regulations on state-owned assets, and promoted the launch of integrated budget management systems in all provinces. Meanwhile, we carried out special campaigns rectifying violations in four types of activities, including the unlicensed operation of accounting firms, and the supervision of financial management was further strengthened.

Ladies and gentlemen, friends from the media, 2022 is an important year as China enters a new era of building a modern socialist country in an all-round way and strides toward the second centenary goal. The CPC will hold its 20th National Congress, and it is significant to do public finance work well. The MOF will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely uphold General Secretary Xi Jinping's core position on the Party Central Committee and in the Party as a whole, and resolutely uphold the Party Central Committee's authority and its centralized, unified leadership. We will also bear in mind the country's most fundamental interests, improve the efficiency of fiscal policies, pay more attention to the precision and sustainability of policies, and exert the role of policies in advance. 

In these ways, we will contribute to sound and sustained economic development and social stability, paving the way for the 20th National Party Congress with actions.

That concludes my introduction. Next, my colleagues and I would like to answer your questions. Thank you all!

Chen Wenjun:

Thank you, Mr. Liu. Now the floor is open for questions. Please identify the news outlet your work for before raising questions.

CCTV: 

At the Central Economic Work Conference, it was noted that the proactive fiscal policy would be implemented in a more effective, targeted, and sustainable way. Therefore, would you like to elaborate on this, and explain how fiscal policy will play a role at an earlier stage? Thanks. 

Liu Kun:

Thank you for your questions. The proactive fiscal policy will be implemented in a more effective, targeted, and sustainable way, which is the major decision made by the Central Committee of the CPC and the State Council after assessing the domestic and international situations. It aligns with the new development philosophy and the general principle of prioritizing stability and pursuing progress while ensuring stability.

To implement the policy more effectively, we need to plan fiscal resources as a whole and improve budget compilation, review, expenditure, and performance-based budget management. In addition, we will work to see the evaluation results are linked to budget arrangement, strengthen the coordination with monetary policy, and ensure macro policies are stable and effective.

To implement the policy in a more targeted way, we need to focus on the high-quality development of manufacturing, easing difficulties for micro-, small- and medium-sized enterprises, scientific and technological innovations, and ramp up efforts to cut taxes and fees. We will also further improve the composition of fiscal spending and truly live on a tight budget, while at the same time working harder to provide funds for ensuring people's basic living needs, major areas, local governments, and especially the grassroots level. 

To implement the policy more sustainably, we need to arrange budget allocation based on what is necessary and possible. We must ensure and enhance public well-being in development instead of aiming too high and making the goals tantalizingly out of reach. We will keep the deficit-to-GDP ratio at safe levels and keep the debt under control scientifically to effectively prevent and defuse risks. 

You asked me how fiscal policy can play its role at an earlier stage. In fact, it means that we need to make the best use of our policies and plan such policies in advance. The sooner the policies are rolled out, the better the policies take effect. If you pay heed to financial news, you may notice that there have been several policies introduced on cutting tax and fees from the fourth quarter of last year to this January. And we will carry out work in the following aspects:

First, we will ramp up efforts to cut taxes and fees. Last year, we cut 1.1 trillion yuan of taxes and fees. Based on that, we will take more extensive measures to cut taxes and fees this year, to help market entities gain a stronger sense of accomplishment. 

Second, we will maintain an appropriate spending intensity. We will focus on achieving major scientific and technological breakthroughs, ecological and environmental protection, ensuring basic living needs, major regional strategies, modern agriculture, and major projects outlined in the 14th Five-Year Plan. We will work to see more targeted budgetary investment and avoid the money being spread too thin. 

Third, we will appropriately arrange special local government bonds. At the end of last year, we allocated 1.46 trillion yuan in advance from the country's 2022 quota for special local government bonds. In January, local governments issued 484.4 billion yuan in special bonds, accounting for a third of the advance quota. The money from the special bonds was used in infrastructure for transportation, municipal facilities and industrial parks, construction projects for affordable housing, and other key areas. In fact, some of the quota at the end of last year were saved for this year's use, so you may see that many new projects at local levels have already broken ground, and many of those projects have accessed funds from the special bonds.

Fourth, we will increase the scale of transfer payments from central to local governments. This year, we will arrange a considerable increase in the scale of transfer payments from central to local governments, especially the general transfer payments, which will continue to be weighted toward poor and less-developed areas and support grassroots governments in their efforts to ensure payment of salaries, normal operations, and the basic wellbeing of the people.

Fifth, Party and government institutions should tighten their belts. The central government will lead by example in living on a tight budget and cut non-essential and non-obligatory expenditures. Governments at local levels should also tighten their belts and advocate thrifty and frugal working. 

Sixth, we will tighten up financial discipline. We will work harder to improve financial orders at local levels and ensure that the financial discipline becomes the "red line" that cannot be crossed. 

CRNTT:

In recent years, the central government has taken the lead in living on a tight budget, and the saved money has been used to improve people's wellbeing. So what are the considerations for the central government to live on a tight budget this year? Thanks. 

Liu Kun:

You asked a question that is concerned by all. Just like you said, the government is now living on a tighter budget. Take the central government as an example. The expenditure at the central level has registered negative growth for two years in a row. In addition, the spending on official overseas visits, official vehicles, and official hospitality have been cut for successive years, declining from 8.107 billion yuan in 2019 to 5.187 billion yuan in 2021, down by 36%.

However, I want to make it clear that tightening the belt of the government is a policy that we must uphold on a long-term basis, rather than it being a short-term measure. General Secretary Xi Jinping emphasized on many occasions that the Party and the government tighten their belts to let the people live better lives — it is a move determined by the nature and the mission of the Party. To limit government spending, we should implement the instructions and demands of General Secretary Xi Jinping. Party and government departments, the central government organs, in particular, should set an example by practicing thrift and economy, and invest the money saved to improve people's livelihoods and support market entities. This policy was not adopted as a result of fiscal pressures.

Remaining committed to the instructions of General Secretary Xi Jinping, we will ensure austerity in all endeavors — taking it as kind of political awareness and political responsibility — and keep government spending low and enrich our people. 

First, we will cut expenditures in a scientific way. This year, the central government will further cut outlays on non-obligatory and non-essential items, save money that is supposed to be saved, and ensure outlays on the operation of government departments and other essential items.

Second, we will continue to live on a tight budget. We will take rigid measures to control expenditures on meetings, trips, training programs, and forums, prohibit the construction of new government buildings or the extension to such facilities, ban unnecessary meetings and projects, and cut out or reduce spending whenever and wherever possible.

Third, we will see that funds are put to better and more effective use. We will keep track of the efficiency of fund use, and carry out performance evaluations to push all departments to improve the efficiency of fund use and make every cent count. Thank you.

The Poster News APP:

Some small and medium-sized businesses have been hit hard by the COVID-19 pandemic. What specific measures has the finance ministry taken to support those enterprises? Thank you.

Liu Kun:

Vice minister Yu Weiping will answer this question. 

Yu Weiping:

Micro, small and medium-sized enterprises prop up economic and social development and play an indispensable role in creating jobs, promoting technological innovations, and improving people's livelihoods. 

Due to the impact of COVID-19, some small and medium-sized enterprises are facing difficulties with production and operation. The MOF has worked out and introduced a series of policies in accordance with the decisions and plans of the CPC Central Committee and the State Council to help them overcome difficulties, revive, and achieve better development.

First, we have reduced the tax burden on small and medium-sized enterprises. We continue to cut taxes and fees, postponing the payment of all the domestic value-added tax and corporate income tax for small and micro manufacturing enterprises, and postponing the payment of 50% of those taxes for medium-sized manufacturing enterprises. We have extended the validity period of the policies on temporarily reducing the premiums for unemployment insurance and workers' compensation insurance. We cut about 1.1 trillion yuan of taxes and fees last year, as Mr. Liu just said, and micro, small, and medium-sized enterprises benefited the most from it.

Second, we have alleviated the difficulty and high cost of financing for micro, small, and medium-sized enterprises. In 2021, the central government allocated 3 billion yuan of funds for rewards and subsidies to support the expansion of the scale of financing guarantees and the reduction of guarantee fees for small and micro enterprises . The reduction of financing guarantee fees for market entities surpassed 10 billion yuan throughout the year. We have continued offering greater financial support to subsidize interest payments on guarantee loans for business startups . In 2021, the central government made 6.34 billion yuan in funds available for subsidizing the interest payments and for rewards and subsidies, up 65.9% year on year. We have supported the construction of demonstration zones for inclusive finance to improve the financing environment for micro, small, and medium-sized enterprises.

Third, we have supported the high-quality development of those small and medium-sized enterprises which specialize in a niche market and boast cutting-edge technologies . From 2018 to 2022, the central government allocated about 9 billion yuan for innovation and entrepreneurship of small and medium-sized enterprises. In 2021, it offered funds for rewards and subsidies to support the development of small and medium-sized enterprises which specialize in a niche market and boast cutting-edge technologies, realizing the nationwide coverage of such "little giant" firms . At present, there are over 300 listed "little giant" firms. Their average growth rates of operating revenue and net profit in the past two years both exceeded 25%, about twice the average of all listed companies.

Next, the MOF will focus on helping micro, small, and medium-sized enterprises overcome difficulties and achieve better development. We will further step up tax cuts, and use financing guarantees, subsidies for interest payments on guarantee loans, and rewards and subsidies to guide and mobilize financial resources towards micro, small, and medium-sized enterprises so that they show greater vitality. Thank you.

Bloomberg:

I have three questions. I'll be very quick. Most of the provinces expect weaker revenue growth this year while spending continues to increase. What's your estimate for national income and spending this year? And what will the central government do to help regional governments meet their needs? What is your target for tax and fee cuts this year? And in the People's Daily last Friday, you wrote that transfer payments from the central government to local governments will be increased by a relatively large margin. How big do you estimate this payment will be? And how will this help offset the impact of tax and fee cuts? Thank you.

Liu Kun:

Your questions are highly specialized. I'd like to answer them. As a matter of fact, your questions involve our need to set an appropriate deficit-to-GDP ratio target, increasing spending, implementing larger tax and fee cuts, and increasing transfer payments to local governments. In view of the composition of your three questions, you may feel that some of these goals are hard to achieve, but China's socialist system has its strength. And we want to solve these problems properly and hope to achieve our goals this year. The answers I give you today may be brief, but I hope and expect you will find them in this year's budget report to the National People's Congress.

You mentioned that the regional revenue is expected to be relatively low. In fact, this is a result of our arrangement for tax and fee cuts, which is still under approval, while the overall direction is clear. That's why local governments have taken tax and fee cuts into account when they forecast their revenue. However, we will increase transfer payments from the central government to local governments to make up for the loss of local revenue.

Mr. Xu Hongcai is in charge of the budget. I'd like to invite him to provide a more detailed answer.

Xu Hongcai:

Thank you for your questions. Your questions are really important, and can be summed up below. The first question is about the imbalance between revenue and spending this year –weaker revenue growth and increased spending. This creates a contradiction between revenue and spending. The second one, or the third question you asked, relates to what the central government will do in such circumstances to increase transfer payments to local governments and ensure their spending can be guaranteed. The third question involves budget arrangements and this year's target. I will answer them one by one in this order.

Tax and fee cuts are indeed an issue of great concern to market entities. In recent years, the MOF has taken it as an important first move in stimulating the vitality of market entities, and strived to reduce government revenue for increasing corporate performance and boosting market vitality. We use tax and fee cuts to boost economic growth. As a matter of fact, tax and fee cuts appear to reduce revenue, but in fact they will bring economic growth and subsequent fiscal revenue increases. Here, I would like to share with you some data.

The first is 1.1 trillion yuan. This was the scale of tax and fee cuts nationwide in 2021, with a focus on supporting the upgrading of the manufacturing sector and the development of micro, small, and medium-sized businesses as well as self-employed individuals. The 1.1 trillion yuan in tax and fee cuts were achieved against the backdrop of continued tax and fee cuts in the last few years as well as growing pressure from fiscal imbalance. We have effectively helped market entities overcome difficulties and stimulated their vitality with solid measures.

Second, in the six years since the beginning of the 13th Five-Year Plan (2016), China reduced 8.6 trillion yuan in taxes and fees, an unprecedented scale in China's history and a relatively large scale worldwide. Through continued tax and fee cuts, the ratio of tax revenue in China's GDP also decreased from 17.5% in 2016 to 15.1% in 2021.

Now comes the third set of data. In total, there are more than 150 million market entities in China. Among them, 13.26 million were newly set up in 2021 and have engaged in tax-related activities, up 15.9% year on year. The implementation of tax and fee cuts has eased the burden of millions of market entities, strengthened economic resilience, and played an important role in meeting challenges and stabilizing economic fundamentals. 

What we wish is that businesses can sustain themselves and assure success for the future. As I mentioned just now, despite the expected sluggish revenue growth and serious budgetary constraints, our tax and fee-cutting policies will bolster economic growth and gradually boost fiscal revenue. This year, finance departments will resolutely carry out the decisions and deployments of the CPC Central Committee and conscientiously implement a combination of policies to cut taxes and fees so as to further vitalize market entities. 

First, the policies will be expanded. We will continue extending a total of 11 tax and fee reduction policies to the fields such as science and technology, employment, business start-ups, health care, and education. Some of the policies will be more preferential than before, and a slew of new measures will be adopted as soon as possible.

Second, the policies will be more targeted. In particular, we will formulate a series of supporting policies in order to boost the high-quality development of manufacturing and help micro, small, and medium-sized enterprises overcome difficulties and promote sci-tech innovation. 

Third, the policies will be well coordinated. We will coordinate tax and fee-reducing policies with other incentives such as proactive fiscal policy, monetary policy, and industrial policy so that we can lend the needy a strong hand through the synergy gains. 

Your second question, according to my understanding, is about how to guarantee local governments' fiscal expenditure as the growth of local fiscal revenue slows due to the tax and fee cuts. Mr. Liu has given the answer: The central finance will increase its transfer payments to local governments, a priority of this year's central budget. The increased transfer payments will be mainly channeled to regions in financial difficulty, underdeveloped areas, and places where revenues dramatically dropped because of tax and fee cuts. Meanwhile, we will improve incentive and constraint mechanisms, encourage local governments, at both provincial and municipal levels, to reinforce financial resources at the county level. We will further increase transfer payments, adopt related guiding policies, and support local governments' efforts in cutting taxes and fees and ensure payment of salaries, normal operations, and the basic wellbeing of the people, thus securing the sound operation of local finances. As always, certain funds will go straight to the targeted areas to meet their policy goals. 

Your third question is about this year's targets for tax and fee cuts. Mr. Liu has suggested you watch the budget report to be issued at the upcoming NPC session. It will tell you all. 

Thank you.

Science and Technology Daily:

Regarding the fifth plenary session of the 19th CPC Central Committee valued sci-tech self-reliance and self-strengthening as a strategic underpinning for national development, we noticed that the MOF had taken a number of measures to innovate research funding management and support basic research. Can you give us more details? Thank you.

Yu Weiping:

Thank you for your question, and I do appreciate your concerns. Viewing the course of human history and the country's future from a comprehensive and strategic perspective, General Secretary Xi Jinping has repeatedly emphasized that sci-tech self-reliance and self-strengthening should aways be considered a strategic support for national development, urging more efforts to build up China's strength in science and technology and strive for sci-tech self-reliance and self-strengthening at higher levels. Making sci-tech self-reliance a priority, the MOF has continuously scaled up investment, deepened management reforms, and innovated and perfected policies, steadily advancing the cause of building China into a sci-tech giant. Despite of the negative growth in its budgetary spending in 2021, the central government managed to allocate 320.554 billion yuan to the science and technology sector through adjusting its spending structure. 

First, we helped solidify the sci-tech foundation through continuously stepping up investment in basic research. In 2021, the central government's spending on basic research increased by 15.3%, mainly directed to natural science funds and basic research work of the Chinese Academy of Sciences. We also further improved the institutions and mechanisms designed to support basic research and original innovation. 

Second, we helped achieve sci-tech breakthroughs. Leveraging the new whole-nation system in a market economy, we successfully advanced the implementation of a batch of major sci-tech programs. With our financial support, an open competition mechanism was introduced to select the best candidates to lead key research projects with the aim of achieving breakthroughs in core technologies in key areas.

Third, focus on priorities. We have advanced the construction of national laboratories, supported reforms and development of research institutes, and promoted the building of high-level research-oriented universities. We have supported innovative organizations in cultivating, introducing and hiring scientific and technological talents, accelerated the construction of a major world center for professional talent and innovation, and boosted the country's strategic scientific and technological strength.

Fourth, promote development. We have boosted the principal role of enterprises in innovation, and supported enterprises to establish innovation alliances to undertake national scientific research tasks, and promoted the integration of industrial and innovation chains. We have improved the tax policies that support innovation, encouraged enterprises to increase R&D spending, and promoted close integration of science and technology with economic development. During the first three quarters of last year, the amount of R&D spending by enterprises eligible for additional tax deductions was 1.3 trillion yuan, with 330 billion yuan in tax cuts and exemptions. 

Fifth, promote reforms. We have improved the management of central government funds for scientific research, and granted greater autonomy in the management of scientific research funds. The number of budget items has been drastically reduced from more than nine to three. The three items are equipment cost, operating expenses and labor cost. The proportion of indirect expenses has been increased, and the proportion of scientific research funds spent on people reached more than 50%. Bureaucratic burdens of scientific research personnel have been reduced to create a good environment for them to devote themselves to research and make more high-quality scientific research achievements. 

If scientific and technological capabilities are strong, the country will be strong. The MOF will strengthen support of fiscal and tax policies and funds, optimize the structure of scientific research expenditure, promote the implementation of scientific research policies and ensure that science and technology, one of the country's most powerful weapons, can better serve the high-quality development and promote the building of a great modern socialist China in all respects. Thank you. 

Yicai:

Since the system of direct fiscal fund allocation was established, fiscal funds of the central government have reached local primary-level governments at a faster rate. Could you give us more details on this? What new measures will be rolled out in terms of improving the system? Thank you. 

Liu Kun:

Thank you for your questions. Just now, Mr. Xu talked about the system of direct fiscal fund allocation. I'd like to invite him to answer your questions. 

Xu Hongcai:

Thank you for your questions. Establishing the system of direct fiscal fund allocation is an important decision made by the CPC Central Committee and the State Council, and also a significant innovation in fiscal management. In 2021, the MOF joined relevant departments to regularize the system of direct fiscal fund allocation, and expand its scope. By "regularize" we mean making the direct allocation of budgetary funds to prefecture- and county-level governments during a particular period of 2020 a normal practice, and expanding the system's coverage. Based on the operations last year, the system has given full play to its advantage of directly allocating those funds to primary-level governments, and improved both management efficiency and fund efficiency. Its characteristics are as follows:

First, fast allocation. Fiscal fund allocation took the "direct train" straight to the primary level, directly benefitting businesses and people, and greatly reducing the "travel time." The operation mode of the system of direct fiscal fund allocation last year was different from that of the year before last. When compiling the budget at the beginning of last year, the central government asked provincial-level governments to allocate fiscal funds in 10-30 days, which was longer than the preceding year. Based on feedback from monitoring the direct fiscal fund allocation, most provincial-level governments completed fund allocation in around 10 days, which was really fast, and faster compared with general fund or non-direct transfer payment funds. According to statistics of direct fiscal fund allocation released at the end of last year, the rate of direct fiscal fund allocation was much faster than that of the general public budget, which shows the advantage of being fast.

Second, targeted manner. Annual statistics show 2.8 trillion yuan of direct fiscal funds, of which 2.67 trillion yuan has arrived at fund users. The directly allocated fiscal funds mainly supported local employment, people's well-being, the operation of market entities, wage payments and the normal functioning of primary-level governments. According to incomplete statistics, spending on people's well-being including elderly care services, compulsory education, basic medical services and basic housing services reached almost 2 trillion yuan, fiscal funds directly used for employment exceeded 51 billion yuan, and fiscal funds directly used for relevant enterprises exceeded 600 billion yuan, benefiting more than 1.66 million market entities, which shows that targeted measures based on specific conditions have been effective.

Third, funds directly allocated to primary-level governments and businesses are under strict supervision. We need to give better play to the role of the relevant supervision system and expose these funds to more supervisory bodies to avoid the decline in quality due to high efficiency. The supervision system covers central, provincial, city, and county-level authorities. In terms of the central government, fiscal and auditing bodies and other relevant bodies have all been connected via the internet so that everyone can have access to the flow, allocation, and spending of funds on one internet platform. The supervision efforts in this regard are stricter than that of other kinds of funds. The National Audit Office has carried out follow-up auditing work on implementing major national policies. The results show comparatively fewer violations of regulations concerning these directly-funneled funds. Funds involved in violation of regulations account for a relatively small part, and the use of these funds is more regulated. As the supervision system continues to work, problems will be timely identified and corrected.

This year, we will earnestly review existing experience and practices, further expand the scope of directly-funneled funds and improve the management system. In addition, we will strengthen supervision on these funds and make sure they are used safely and efficiently and based on regulations to give better play to their role and serve for economic and social development.

Thank you.

Xinhua News Agency:

In recent years, we have felt the continuous improvement of the environment around us, and more blue-sky days have been reported. What measures did the MOF take to help win the battle of pollution prevention and control? What are your next plans? Thank you.

Liu Kun:

Thank you. You've raised an excellent question. A fine ecological environment is the fairest public product and the most accessible welfare for the people. The government funding should provide the fairest public goods. General Secretary Xi Jinping has stressed on multiple occasions that lucid waters and lush mountains are invaluable assets and that we should protect Nature and preserve the environment like we protect our eyes and endeavor to foster a new relationship where man and Nature can both prosper and live in harmony. The MOF has thoroughly studied General Secretary Xi Jinping's views and proposals, comprehensively made use of fiscal policies, and supported the resource conservation and the protection of the ecosystem and environment to better meet people's needs for a good environment. We have mainly made efforts in the following three aspects:

First, investment has been increased. In 2021, the central government allocated 437.4 billion yuan for eco-environmental protection. In the meantime, the MOF innovated methods for fiscal administration and proactively gave full play to the leveraging role of government funds. Through the national green development fund, provincial-level funds for the prevention and control of soil pollution, and others, the MOF has encouraged private capitals to participate in eco-environmental protection and treatment.

Second, more efforts have been made on key issues. Since the 18th CPC National Congress, the central government has set up special funds to manage water, air, and soil. These funds are used to protect our blue skies, clear waters, and clean lands, with special efforts to address prominent eco-environmental issues and help significantly improve the environment. Due to financial investment and efforts of the whole society, we have seen remarkable results. Take blue skies, for an example. In 2021, the PM2.5 density of cities at or above the prefectural level decreased 9.1% over the previous year, and 87.5% of days saw good or excellent air quality. I believe that every citizen can feel the obvious improvement in this field in their daily lives.

Third, the long-term mechanism has been established. The MOF set up mechanisms for trans-regional and intra-watershed compensation for ecological conservation efforts in all river basins of the Yangtze River and the Yellow River. We have also made coordinated efforts in the systematic governance of mountains, rivers, forests, farmland, lakes, grasslands, deserts, and glaciers. We established nature reserve systems based on national parks, continuously improved green government procurement policies, and effectively promoted the green and low-carbon transformation of the economy and society.

If we do not fail Nature, Nature shall never fail us. Therefore, the MOF will firmly carry out Xi Jinping thought on eco-civilization, continuously increase investments and solve prominent environment problems as soon as possible, and help secure victory in the prolonged battle of environmental protection, in a bid to make skies bluer, mountains lusher, and waters clearer. Thank you.

Economic Daily:

In January, special bonds were issued significantly faster than during the same period last year. What were the considerations behind this? And how have the funds been put into use? Thank you.

Liu Kun:

Vice Minister Xu Hongcai and I covered the questions you raised in his answers and in my opening remarks. I'd like to invite Mr. Xu to elaborate on the matter.

Xu Hongcai:

Thank you. This is an important question. As Finance Minister Liu Kun said, in 2022 we should adopt proactive fiscal policy in advance and make full use of the policy toolbox, issue policies earlier and see results earlier, so as to let the policies be more targeted and effective.. In line with the decisions and plans of the CPC Central Committee and the State Council, the MOF has allocated 1.46 trillion yuan (about $229 billion) from its 2022 quota for local government special bonds in advance, authorized by the National People's Congress (NPC) Standing Committee and agreed upon by the State Council. 

The advance allocation is characterized by the country's proactive fiscal policy. The special bonds should be issued properly in accordance with the economic climate and macroeconomic regulation. China's economy is currently facing new downward pressure, which requires fiscal policies to be "brought forward appropriately." Set to be allocated in advance, issued and used at high speed, these special bonds are expected to encourage effective investment. As Minister Liu Kun introduced earlier, statistics show that many new projects were started and expenditures grew a lot. In January, local governments already issued 484.4 billion yuan of newly-added special bonds, accounting for 33.2%, or almost one-third, of the advanced allocation of 1.46 trillion yuan. Among the new bonds, about 30% were spent on infrastructure related to city planning and industrial parks, 20% on the construction of transportation infrastructure, 20% on fields related to social construction like education, healthcare and elderly care, and the remaining 30% was spent on other fields. We have launched this policy as part of implementing in advance the decisions and plans of the CPC Central Committee . The results in January were relatively good. In the following months, we will continue to provide guidance to local governments and help them speed up the use of funds, so as to accomplish the work as soon as possible and better promote economic growth.

Thank you.

ThePaper.cn:

Affected by the pandemic, some local pensions are in deficit. How does the MOF ensure pension funds are paid on time and in full? This year, a unified elderly-care insurance system for enterprise employees will be implemented nationwide. How is this progressing? Thank you.

Liu Kun:

I'd like to stress first and foremost that the pension funds for retired people can be paid on time and in full everywhere in China. Next, Vice Minister Yu Weiping will answer your questions with some more details.

Yu Weiping:

Pension funds are the money that Chinese people entrust to the government to use for their basic living. The public pays great attention to the running of pensions. Let me give you some statistics. Preliminary data shows that the cumulative balance of social security funds nationwide totaled 4.8 trillion yuan, which can cover payments for more than 14 months. The revenue into social security funds exceeds expenditures, and like Minister Liu Kun said, the payment of pensions is guaranteed to be on time and in full. 

We need to properly manage and use pension funds, so as to ensure that the hundreds of millions of elderly people can be well cared for. This manifests the practice of a people-centered development philosophy within finance departments. In recent years, we have adopted a series of measures to ensure the elderly across the country receive their pensions on time and in full. 

The first is to increase the central government's subsidies. Since the implementation of the unified pension fund system in 1998, the central government has been increasing subsidies to the basic pension funds for enterprise employees. In 2021, the central government arranged subsidies of more than 600 billion yuan to support local governments to ease the pressure on fund revenue and expenditure.

The second is to increase the adjustment ratio. In 2021, the central adjustment ratio of basic pension funds for enterprise employees was increased to 4.5%, and the total scale of the adjustment has reached more than 930 billion yuan. The central government focused on supporting provinces with prominent revenue and expenditure problems – so China's central and western regions, as well as provinces with old industrial bases, have benefited with more than 210 billion yuan.

The third is to transfer state-owned capital to enrich social security funds. At the central government level, a total of 1.68 trillion yuan of state-owned capital from 93 central government enterprises was transferred to the funds.

The basic pension funds for enterprise employees is coordinated, and the funds complement each other across the country, which is conducive to giving full play to the funds' scale and enhancing their support capacity. This work was officially implemented on Jan. 1 this year. At present, we are speeding up the research and formulation of relevant supporting documents, measuring the scale of fund allocation, rationally adjusting the surplus and deficit of funds between regions, strengthening the tracking and guidance for local implementation work, adjusting and improving policies and measures in a timely manner, and getting the job done earnestly. Thank you.

Chen Wenjun:

One last question.

China Daily:

The year 2021 was the first year for China to win the battle against poverty, as scheduled. I would like to ask what efforts the MOF has made in consolidating and expanding the achievements of poverty alleviation? What new plans will be taken in these aspects this year? Thank you.

Liu Kun:

Thank you for your questions. Poverty alleviation is the biggest concern of General Secretary Xi Jinping. The year 2021 was the first year of the transition period after China won the battle against poverty. The MOF has borne in mind General Secretary Xi Jinping's instruction of consolidating and extending the achievements of poverty alleviation while shifting toward, and pushing forward, all-around rural vitalization. We have maintained the overall stability of the central government's financial support policies, supported and firmly held the bottom line of preventing a large-scale return to poverty, and continued to push forward the economic and social development of poverty-alleviated regions.

First, we increased input. In 2021, the central government arranged 156.1 billion yuan of subsidies for shifting toward, and pushing forward, rural vitalization, an increase of 10 billion yuan from the central government's original poverty relief fund in 2020. We actively ensured funding for industry assistance. During the critical period of the battle against poverty, we gave transfer payments to 832 poverty-stricken counties. During the transition period, we continued to give transfer payments to poverty alleviated areas to ensure they get enough much-needed supplies to accelerate development. And we will continue to increase the funds in this regard.

Second, we highlighted precision. We promulgated the management measures for the central government's follow-up funds, which clearly defined the content of support and the negative list, meaning that this money can't be used in other aspects. We continued to delegate the approval authority for funding projects to counties. We continued to support poverty-alleviated counties to carry out pilot projects for the integration of agriculture-related funds, continued to implement policies such as tax incentives and government procurement, and provided institutional guarantees for the consolidation and follow-up work. 

Third, we tracked the effects and results. We strengthened the performance evaluation of the central government's follow-up funds, and encouraged all regions and departments to manage and use the follow-up funds well. We supported the improvement of the monitoring and assistance mechanism to prevent the return to poverty, gave priority to supporting the development of characteristic and advantageous industries in poverty-alleviated areas, and helped the poverty-alleviated people continue to increase their incomes. We also increased follow-up support for families relocated from inhospitable areas and improved work and living conditions in poverty-alleviated areas. 

With the joint efforts of all departments, positive results were achieved in consolidating and extending the achievements of poverty alleviation while effectively shifting and linking with rural vitalization, and the bottom line of preventing a large-scale return to poverty was guarded. According to the monitoring data, the income among people lifted out of poverty has continued to grow, and their per capita net income in 2021 was estimated to exceed 12,500 yuan. People's lives have been further improved.

General Secretary Xi Jinping has pointed out that the premise of rural vitalization is to consolidate the achievements of poverty alleviation, and we must continue to pay close attention to it. The central government will further strengthen the guarantee of input, and give priority to areas where the task of consolidating the achievements of poverty alleviation is heavy and the foundation to promote rural vitalization is weak. We will continue to enhance the ability of independent development in poverty-alleviated areas so that people's lives will become more and more prosperous. Thank you.

Chen Wenjun:

Thank you to Minister Liu Kun and to the two vice ministers. Also, thank you, friends from the media. That's it for today's press conference, goodbye.

Translated and edited by Zhang Liying, Wang Qian, Wang Yiming, Ma Yujia, Cui Can, Yuan Fang, He Shan, Zhang Jiaqi, Wang Wei, Duan Yaying, Huang Shan, Li Huiru, Yang Xi, Liu Qiang, Zhu Bochen, Wang Yanfang, Liu Sitong, Chen Xia, Zhang Rui, David Ball, Tom Arnstein, Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Wu Yanhua, vice administrator of the China National Space Administration (CNSA)

Xu Hongliang, spokesperson of the CNSA 

Liu Jizhong, director of the Lunar Exploration and Space Program Center of the CNSA

Zhao Jian, director of the Earth Observation System and Data Center of the CNSA

Chairperson:

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

Date:

Jan. 28, 2022

Xing Huina:

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

Today, the SCIO is holding a press conference to issue, introduce and interpret the main contents of a new white paper titled "China's Space Program: A 2021 Perspective."

Thoroughly guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the white paper introduces China's practices and achievements in realizing innovative and leapfrog space development, modernizing space governance, and actively carrying out international space exchanges and cooperation. Furthermore, the paper explains China's policies and proposals in conducting international space communication and collaboration and facilitating building a global community of shared future in outer space. Finally, the paper also looks to the vision where China will embark on a new journey towards a space power and foster a new paradigm of international space cooperation over the next five years.

At about 13,000 Chinese characters, the white paper consists of three parts: the preamble, main body, and conclusion. The main body has six parts: A New Journey Towards a Strong Space Presence, Development of Space Technology and Systems, Developing and Expanding Space Application Industry, Research on Space Science, Modernizing Space Governance, and International Cooperation. The white paper is published in eight languages —Chinese, English, French, Russian, German, Spanish, Arabic, and Japanese — by the People's Publishing House and the Foreign Languages Press. It is available at Xinhua Bookstore outlets across the country.  

In order to help you gain a more accurate and deep understanding of the white paper, we have invited Mr. Wu Yanhua, vice administrator of the China National Space Administration (CNSA); Mr. Xu Hongliang, spokesperson of the CNSA; Mr. Liu Jizhong, director of the Lunar Exploration and Space Program Center of the CNSA; and Mr. Zhao Jian, director of the Earth Observation System and Data Center of the CNSA, to attend today's press conference. They will introduce relevant information and answer your questions.

Now, I will give the floor to Mr. Wu Yanhua.

Wu Yanhua:

Ladies and gentlemen, good morning. I am glad to meet you and grateful for your care and support for China's space industry. Today, we are here to release China's fifth white paper on space activities — "China's Space Program: A 2021 Perspective" — to enhance your understanding of China's space development and envision the bright prospects for cooperation. China's space industry has forged ahead, secured new achievements, and made great strides in the past five years: the Chang'e lunar probes exploring the moon; the BeiDou Navigation Satellite System (BDS) starting operation; the Zhurong rover probing Mars; the Xihe satellite exploring the sun; the Tianhe space station core module traveling among the stars; and the Dark Matter Particle Explorer (also known as Wukong or Monkey King) and the Huiyan (Insight) Hard X-ray Modulation Telescope unraveling the mysteries of the universe.

The last five years have seen innovation and development for China's space industry. With the accelerated improvement of launch vehicles, the new generation of non-toxic and pollution-free launch vehicles, such as Long March-5, are now in service. The commercial carrier rockets have continued to emerge, forming a diversified launching capability covering land and sea. Over the past five years, a total of 207 launch missions have been completed, with the success rate of the Long March series carrier rockets being 96.7%. Major space programs have born rich fruit. The construction of China's space station is fully underway. Six astronauts have been stationed in two missions, starting an era of long-term presence of people in the space station. The Chang'e-4 lunar probe has performed humanity's first-ever soft landing on the moon's far side and conducting roving explorations; the Chang'e-5 lunar probe has retrieved 1,731 g of samples. The Tianwen-1 mission has left China's first mark on Mars for the first time, helping the country achieve a leap from cislunar to interplanetary exploration. The infrastructure of China's space station has been consistently improved. The BDS has been completed and put into operation. Meanwhile, the high-resolution earth observation system has built systematic capabilities. 

The last five years have seen China's space industry contributing to society. More than 500 satellites of various types are operating in orbit, extensively serving socio-economic development and playing an essential role in building a peaceful, beautiful, and digital China. Communications satellites have provided more than 140 million families in rural and remote areas with remote education, telemedicine, and rural e-commerce services. Therefore, they have contributed to poverty alleviation and rural vitalization. In addition, more than 100 million remote sensing satellite images have been distributed, effectively fulfilling the demands of weather forecasting, territorial planning, ecological protection, the marine economy, and disaster emergency management. The BeiDou system has been widely used for traveling, intelligent logistics, and precision agriculture, especially providing precise positioning and navigation services in COVID-19 prevention and control. The space technology achievements have promoted the development of emerging industries, such as new energy and materials, and facilitated the emergence of new business forms such as smart cities and unmanned driving. The development of commercial space enterprises is thriving.

Over the past five years, China's space industry has made continuous exploration and breakthroughs. It has focused on scientific topics such as the origin and evolution of the universe and the relations between the solar system and humanity. It has been supported by space science satellites and lunar exploration, Mars exploration, and manned space missions. As a result, China's space industry has carried out exploration and experimental research on space science and has made a number of innovative achievements that all humanity can share.

For example, the Huiyan Telescope successfully observed the black hole explosion process. The Wukong Explorer acquired the refined structure of the energy spectrum of cosmic rays. The satellite Zhangheng-1 built models of the global geomagnetic field, and the TANSAT satellite developed a high-precision map of the worldwide distribution of carbon dioxide. The lunar exploration missions revealed the subsurface structure of the moon's far side, confirming that there were still magmatic activities on the moon 2 billion years ago. Finally, Tianqin-1, Taiji-1, and Xihe satellites have provided new research methods regarding space gravitational waves and solar physics.

The last five years have seen enhanced cooperation and sharing in China's space industry. The Chinese space community has cooperated with international partners to help realize the United Nations 2030 Agenda for Sustainable Development goals by applying sustainable aerospace technologies. It also signed about 50 agreements or memorandums of understanding during the last five years. For example, China initiated the International Lunar Research Station project jointly with Russia and conducted extensive cooperation in manned space exploration, lunar exploration, and Mars exploration missions. In addition, it has agreed to cooperate on the BRICS Remote-Sensing Satellite Constellation and successfully launched the China-France Oceanography Satellite and the China-Italy Electromagnetic Monitoring Experiment Satellite. Furthermore, it has promoted the BeiDou standards to be included in the standard systems of several international organizations in the fields such as civil aviation and maritime affairs. Data from Gaofen-1 and Gaofen-6 satellites have been distributed freely worldwide via a cloud platform, with about 550,000 users from 158 countries and regions accessing the data. In addition, five of China's satellites and three satellite constellations have joined the mechanism of the International Charter on Space and Major Disasters, and meteorological satellite data have been used in 121 countries and regions. China has supported the space capacity building of developing countries and shared the achievements of China's space development through various means, including infrastructure construction, talent training, and data application.

In the following five years, China's space industry will continue to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and adhere to the principles of innovation-driven, coordinated, efficient, and peaceful progress based on cooperation and sharing. Focusing on building China's strength in aerospace and developing a high-quality space industry will promote the comprehensive development of space science, space technologies, and space applications to contribute to building a great modern socialist country and to humanity's cause of peace and development.

First, we will promote the implementation of significant projects through innovation. We will build China's space station and the High-Resolution Earth Observation System, implement new major projects, including the fourth phase of the Lunar Exploration Program and planetary exploration, and promote the research and development of heavy-lift launch vehicles. We will establish near-earth asteroid impact risk response systems, develop essential programs such as the boundary exploration of the solar system, and further expand the launch vehicle family. Furthermore, we will continue to upgrade national space infrastructure and improve the ability of the space environment governance system.

Second, we will develop and expand the space application industry. We will promote the deep integration of space applications and the digital economy, enrich application scenarios, innovate business models, and deepen the comprehensive application of communications, navigation, and remote-sensing technologies. We will accelerate the transfer and transformation of space technology achievements to serve the economy and society and develop new business models of the space economy such as space travel, space biomedicine, and space breeding.

Third, we will make overall plans for research on space science. Critical areas such as space astronomy, space physics, lunar and planetary science, and space earth sciences will be systematically promoted. Space science satellites such as the satellite for space gravitational wave detection, the Einstein Probe, and an advanced space-based solar observatory will be developed. We will also use platforms including China's space station and lunar and deep space probes to continuously carry out frontier science exploration and basic research to generate more original scientific findings.

Fourth, we will create a sound environment for space industry development. The innovative systems that deeply integrate enterprises, universities, research institutes, and end-users will be improved and the fundamental capacity of the space industry will be strengthened. Regulations on managing satellite frequency, orbit resources and the BDS will be formulated. Guidelines for the development of the commercial space industry will be issued to promote the law-based governance of the space industry. China will build a high-level team of aerospace professionals and step up its efforts to become a world center for talent and innovation in space science. We will also carry out education campaigns to popularize space knowledge and culture, promote the spirit embodied in the development of China's space industry, and create a favorable environment for the whole society to develop an interest in science, to explore the unknown, and to be bold in blazing new trails.

Fifth, we will broaden and deepen international cooperation. China actively participates in the global governance of outer space and provides Chinese solutions to areas such as near-earth objects monitoring and response, planet protection, and space traffic management. In addition, China will work with other countries, international organizations, and partners to build an international research station on the moon, implement the cooperation agreements for the BRICS Remote-Sensing Satellite Constellation, and promote the global application of space information services. More extensive and diversified international mutually beneficial cooperation will also be carried out in lunar exploration, space station, planetary exploration, and the BDS.

Exploration and utilization of outer space for peaceful purposes is the shared dream of all humanity. When we look up at the stars, we are in the meantime making unremitting efforts to explore the space. As long as we join hands, we will make steady progress in space exploration. China is ready to work with the international community to accelerate the development of a high-quality and sustainable space industry that can improve people's wellbeing. In this way, China will also make new pioneering contributions to promoting the building of a community with a shared future for mankind and advancing the progress of human civilization and peaceful development.

Thank you. Now, my colleagues and I would like to answer your questions.

Xing Huina:

Thank you for your introduction, Mr. Wu. Everyone is already very enthusiastic about raising their hands for questions.

China Media Group:

Mr. Wu, we can see China's achievements in the space sector from your briefing just now, and everyone sees it. What are the anticipated highlights of China's space sector in the future, especially during the 14th Five-Year Plan period (2021-2025)? Thank you.

Wu Yanhua:

Thank you for your question. China made many shining and fruitful achievements in the space sector during the 13th Five-Year Plan period (2016-2020), yet the tasks in the 14th Five-Year Plan are particularly challenging. Simply put, they fall into the following categories.

First, we will complete and continue the operations of the major national projects launched 10 years ago, such as the manned spaceflight project, the Beidou project, and the high-resolution Earth observation system, which also includes making good use of the scientific research data, lunar soil and other samples collected from the three-step lunar exploration program of orbiting, landing, and return for scientific analysis.

Second, according to the national plan, China will launch a number of major space projects, including the fourth phase of the lunar exploration program and the planetary exploration program. We will also verify a number of major projects, such as heavy-lift launch vehicles, and implement them after approval.

Third, we will integrate and coordinate the development of space technologies and space applications, especially the construction of space infrastructure, including three types of satellites (communications, navigation, and remote-sensing). We will develop sound space infrastructure and promote the application of satellites so that they can serve the economic and social development extensively at home and the whole world.

Fourth, we will make overall plans for research on space science and launch a number of satellites for scientific verification. At the same time, we will make good use of the space station, lunar exploration, planetary exploration, and other platforms to carry out in-depth scientific research and strive for original scientific discoveries that contribute to humankind.

The last point is to further deepen the open cooperation with international peers in both major projects and other aspects like satellite research and development, satellite applications, space science, and education through the cultivation of university, middle school, and primary school students. We welcome multimodal, in-depth, and multi-dimensional cooperation among all of our international peers with China's space sector. Thank you.

CNR:

We know from the introduction just now that China has made many important achievements in the space sector in the past five years. Could you please provide a brief review? Besides, what are the key development directions for the future? Thank you.

Liu Jizhong:

Let me take your questions. Over the past five years, China has boosted the development of space science through its lunar exploration program, the Tianwen-1 Mars probe and space science programs like the Wukong and Mozi satellites. It covers the following aspects: First, from the perspective of evolutionary history, we have gained a new understanding of the evolution of the moon, especially in geological terms, by studying the moon's subsurface structure. Based on the analysis and research of lunar samples collected during the Chang'e-5 mission, we deduced that the geological activities of the moon date back to 2 billion years ago, which was previously thought to be 3 billion years ago. It means the moon is approximately 1 billion years younger. These understandings of the moon, including those of the evolution of the lunar landscape, are of crucial significance. Second, from the perspective of matter and energy, we discovered new types of lunar matter of deep-seated origin through preliminary studies and the relatively precise fine structure in the cosmic-ray energy spectrum. Third, from the perspective of the space environment, through several years of scientific research, we have a new understanding of the radiation of lunar particles and obtained new numerical values. We discovered the lunar micromagnetosphere, and established a new model and rationale for the interaction between solar wind and the moon. At the same time, we have gained a new understanding of the evolution of the Earth's plasma layer activities through the observation of the Earth from space.

Indeed, we have scored many scientific achievements as well. Meanwhile, we have established a batch of facilities for scientific research, which lays a solid foundation for future scientific research and cooperation with international peers. The implementation of these projects has further promoted scientific research. According to statistics, more than 100 colleges have set up disciplines related to space science and enrolled plenty of international students. These serve as a sound foundation for building a talent base for future space science research, which is crucial.

Scientific progress is of paramount importance to the development of human civilization. Hence, China will not cease its deep space exploration. We will focus on issues including the universe, the solar system and development of its planets, and the influence of solar activity on earth. We will roll out tasks like the fourth phase of the lunar exploration program, the planetary exploration program, space station operations, and follow-up special satellite missions such as space astronomy and space physics exploration. By carrying out these tasks and cooperating with other countries, we will bolster the development of both space science and humanity. Thank you.

Southern Metropolis Daily:

We all know that the development of China's space industry relies on the support of innovative scientists, engineers and technicians. What measures does the CNSA take to foster and attract such talents? 

Xu Hongliang:

Thank you for your question. Through its development of more than six decades, China's space industry has made remarkable achievements, formed spirits that are profound and broad, and fostered many extraordinary talents in particular. We have always put focus on standards of selecting and appointing professionals. The standards cover political conviction, moral conduct, ability, style, and honesty. As a result, we have fostered and cultivated a space talent team who stand firm in their ideals and convictions with strong patriotic enthusiasm, a great sense of responsibility, and a good mental outlook. For example, the average ages of the Chang'e team, Tianwen team, Shenzhou team, and BeiDou team are 30 to 40. The development of any cause is impossible without talent, so the development of the space industry needs new blood. At a central conference on talent-related work at the end of 2021, General Secretary Xi Jinping called on efforts to "implement the strategy on developing a quality workforce in the new era." The space industry has followed his great call and formulated relevant plans and incentive policies.

We have taken a series of measures in talent cultivation. First, through implementing the country's major projects, we have enhanced the cultivation of strategic scientists, top sci-tech leaders, young sci-tech talent, innovative teams, and national craftsmen. Second, we have strengthened the mechanism of talent exchange to standardize and guide its development. Third, we have intensified incentive mechanisms. With the economic and social development, the national support for technological talent has scaled up. For instance, some social organizations and enterprises have established individual awards, including the Qian Xuesen Top Achievement Award and the Space Contribution Award, which effectively play an incentive role. Fourth, we have strengthened discipline building and talent reserve cultivation. As Mr. Liu introduced just now, we have carried out discipline construction on space science and fostered talent for China's space industry through the joint building of colleges and disciplines. Fifth, we have extensively carried out international exchanges and cooperation and cultivated talent for some developing countries particularly. For instance, we have responded to the calls of the United Nations and established a regional center on space education to foster space talent for developing countries and facilitate their development. Thank you.

Phoenix Satellite Television:

Last October, China successfully sent solar exploration satellite Xihe into space, marking a new era of solar exploration. How has the data feedback from Xihe been, and what does the future of China hold in this field? Thank you.

Zhao Jian:

Thank you for your questions. First of all, I'd like to begin by briefly introducing Xihe—China's first solar exploration science and technology experimental satellite. It was sent successfully into space from the Taiyuan Satellite Launch Center on Oct. 14, 2021. This significant accomplishment marks China's transition into a new era of solar exploration. General Secretary Xi Jinping referred to the Xihe satellite chasing the Sun in his 2022 New Year Address, bringing the satellite greater attention.

After more than three months of in-orbit tests and experiments, the satellite has completed more than 40 technical verifications and imaged the sun more than 290 times. The satellite platform and loads continue to operate normally and stably, and its functions and performance meet general development requirements. The satellite will continue its in-orbit scientific experiments during the Spring Festival holidays.

A slew of technological and scientific progress achieved by the satellite will be officially released later this year by CNSA, and I'd like to briefly introduce some of the major achievements here:

First, it demonstrated, in orbit, the ultra-high pointing accuracy and stabilizing technology of a new kind of satellite platform with high accuracy. Compared to traditional platforms with equal inertia, the pointing and stabilizing accuracies of Xihe are two-fold. 

Second, it has captured the solar Hα spectral line in orbit, which was the first time the world has seen full-disk images of the Sun in the Hα spectrum. What is the solar Hα spectral line? It occurs when the interaction between photons and hydrogen atoms brings electrons' energy-level transition. As the brightest spectral line responding to the solar eruptions, it can directly reflect the characteristics of solar eruptions. Previously, the solar Hα spectral line could only be detected on Earth, but the data were discontinuous and unstable due to the atmospheric disturbance. Based on the satellite's high-resolution observation and imaging of the sun, scientists can more accurately obtain the temperature and velocity changes in the solar atmosphere during solar eruptions, set up a complete physical mode of energy accumulation, release and transmit from photosphere to corona, and provide key data for studying the dynamic process and the physical mechanism of solar eruptions, which could be expected to become a scientific achievement with international iinfluence.  

With solar exploration satellite Xihe into space, the lunar samples brought back by the Chang'e-5 mission, and Tianwen-1's landing and exploration of Mars, we have formed a deep-space exploration trio in one year, covering the solar system's planets and star and contributing wisdom and strength to constructing our country as a major power in space. Referring to the plan for the future solar system exploration, scientists are conducting demonstration studies, helping us further understand the structure, characteristics, mechanism, and laws of solar system to better forecast the space weather and benefit human beings. Thanks.

Beijing Youth Daily:

This white paper is the fifth of its kind published by the Chinese government on the space program. What are the characteristics and highlights of the "China's Space Program: A 2021 Perspective" compared with previous ones? Thank you.

Xu Hongliang:

Thanks for your question. As you mentioned, this is the fifth white paper on China's space program. Structurally, the white paper, with the mainline of building China into a space power, systematically introduces the mission, principles, policies, measures, and ideas of international cooperation on a new journey towards a space power. Consisting of 11 aspects, the white paper summarizes our achievements in space science, space technologies, and space applications over the past five years. Furthermore, it outlines the future development in the next five years. Specifically speaking, it has three characteristics.

First, it fully embodies the concept of high-quality development. The Chinese government has been committed to modernizing space governance. We have been proactive in formulating relevant policies and measures, given full play to a well-functioning government and an efficient market, and created a favorable environment for the growth of the high-quality space industry. In terms of innovation-driven development, we will strengthen original innovation and optimize the environment for innovation by implementing major space programs. In terms of basic capabilities, we will continue to improve its integrated and open industrial system comprising system integrators, specialized contractors, market suppliers, and public service providers, optimize the industrial structure, and further integrate industrialization with information technology. In terms of the development model, we will encourage and support the development of commercial space enterprises, optimize the distribution of the space industry in the national industrial chain, and accelerate the cost-efficient development of space. In terms of governance capacity, we will speed up the formulation of a national space law and work out relevant policies and regulations to promote law-based governance. In terms of talent cultivation, we will implement the guiding principles of the central conference on talent-related work, improve the mechanism for talent cultivation, exchange, and reward, and strengthen the foundation for talent development. In terms of cultural development, we will promote space education, communication, culture, and spirit embodied in space development in order to increase scientific knowledge among the general public.

Second, it serves the country's primary strategic needs. We all know that building a safe, healthy, beautiful, and digital China has become an essential part of China's socialist modernization. China's space industry has always supported national strategic development and continued to improve its efficiency. On the one hand, we will intensify the integration of satellite applications with the development of industries and regions, space information with information technology such as big data, cloud computing, and the Internet of Things, and boost public services with satellites. On the other hand, we will expand the application and transfer of space technology and provide more convenient and high-quality services for all industries and sectors, and the public. We will also expand China's space economy to make a significant contribution to building China's strengths in science and technology, transport, manufacturing, and cyberspace.

Third, it demonstrates a positive attitude of openness and cooperation. For the first time, the white paper proposes that we will build a community with a shared future for mankind in utilizing outer space and be more open and active in engaging in extensive international exchanges and cooperation. First, besides international onboard payload cooperation, we will expand cooperation on mission planning. Second, collaboration will be upgraded from a single product to joint development of complex systems. Third, the application will be expanded from a typical scenario to a comprehensive application in multiple fields. By doing these, space activities can better benefit humanity and promote the progress of human civilization.

That's my answer. Thank you.

Wu Yanhua:

Mr. Xu has already given a very detailed answer. I would just like to add a few points. First, our major space projects are at a juncture between two stages. First, China has developed a long-term plan for its space program. Just now, I introduced the last group of major projects, which were launched 15 years ago and have entered the phases of completion, operation, and application. The Chinese government is planning new major projects and tasks for the next 15 years. Second, as stated in the white paper, China will integrate space science, technology, and applications. In the past, China paid greater attention to space technology. In the new era, we will emphasize advancing technological innovation through space applications and new discoveries in space science to promote sustainable development. Third, we will be more open to international cooperation and collaboration with international partners and counterparts at a higher level and larger projects. For example, as I said, China and Russia will jointly launch an international lunar research station project. It will be an extensive and long-lasting international scientific cooperation project. We welcome the participation of all the countries, international organizations, scientists, and engineers interested in the project. Thanks.

Xinhua News Agency:

We know that space development requires high investment. How do you view the investment? How does China's space industry serve its economic and social development and help improve the people's well-being? Thanks.

Zhao Jian:

Thank you for your questions. Space development is the common cause of mankind. On the first China Space Day, General Secretary Xi Jinping said, "To explore the vast cosmos, develop the space industry and build China into a space power is a dream we pursue unremittingly." The space industry reflects a country's overall development of science and technology. In developing the space industry, we must "attain to the broad and great while addressing the delicate and minute." We need to promote the leap-frog development of space science and space technology and transform the achievements of scientific and technological innovation into the forces driving economic and social development.

First, China attaches great importance to space development, and the Chinese people have provided strong support. Space development indeed requires high investment. However, space development and applications can yield substantial benefits. According to preliminary statistics, the input-output ratio of the space industry can exceed 1:10. The application of new space technology has brought about tremendous changes in industrial development. The transformation and applications of space technology serve as strong forces driving economic growth and the development of smart transportation, new energy, new materials, etc. They also play an essential role in supporting the building of a moderately prosperous society in all respects. Therefore, the high investment in the space industry can produce a high output, and the overall benefit is considerable.

Second, aerospace applications have been widely used in various economic and social fields, such as land and resources surveys, environmental protection, agricultural development, forests and grasslands monitoring, disaster prevention and mitigation, weather forecasting, marine development, transportation, education, medical care, and urban and rural construction. In addition, the derived applications of new technologies from aerospace applications have also entered thousands of households. Ordinary people can also experience and feel the improvements to life created by aerospace technologies. For example, communication and broadcasting satellites can provide people with global mobile communications, live radio and television broadcasts, and high-speed broadband internet access, which greatly helped facilitate people's digital lives in the information age; satellite navigation positioning has become an indispensable assistant in people's daily lives, which has greatly facilitated people's transportation and travel and changed people's means of work and lifestyle. Meanwhile, meteorological satellites can provide accurate weather forecasts around the world and in specific regions and provide weather guarantees for people's clothing, food, housing, and transportation.

As another example, satellites are more effective for disaster prevention and mitigation. The high-definition nephograms of typhoon observations produced by high-resolution satellites can clearly observe the structure of a typhoon eye and the pattern of movement and changes, and there were no omissions for typhoons occurred throughout the year around the world. This greatly reduces the cost of disaster prevention and mitigation, and the economic and social benefits are significant. In addition, high-resolution satellites have also played a very important role in preventing forest fires and responding to floods. Recently, a volcanic eruption occurred in Tonga. The CNSA launched the Earth Observation System in an emergency capacity, mobilized more than a dozen satellites to conduct high-frequency observations, and provided relevant imagery data to international organizations in a timely manner.

Third, the development of the aerospace sector not only promotes the rapid formation of the aerospace industry chain but also empowers traditional industries, promoting industrial upgrading and improving quality and efficiency. The aerospace industry is a highly complex and large-scale aggregation, which will help vigorously promote the development of the entire industry chain. It is the same everywhere from a global perspective. A solidly founded aerospace industry is becoming fertile ground for commercial aerospace development, a highland for talents from multiple fields, and a bridgehead for new technology integration and innovation. At present, aerospace technologies are increasingly playing a role in driving growth of related industries, as the result, the latter are showing a great development momentum, and a pattern of intensive, explosive growth of industrial applications has gradually formed. New development patterns have been shaped: centrally-administered state-owned enterprises driving the development of local areas, local governments encouraging characteristic enterprises to gather and develop, and advantageous private capital participating in specialized investment. Through commercial development, these will form a synergy with government investment to further improve the efficiency of aerospace development. 

We believe that aerospace development will continuously improve people's wellbeing and vigorously promote the realization of the United Nations' Sustainable Development Goals. The further development and utilization of aerospace technologies will also help us jointly guard this blue planet and benefit the people. Thank you!

Cover News:

We have learned that China has approved the fourth phase of its lunar exploration program, including the Chang'e-6, Chang'e-7, and Chang'e-8 missions. These three missions will be launched over the next ten years. Could you brief us on the specific arrangements? How important are these missions? Thank you.

Liu Jizhong:

Thank you. China's lunar exploration program was first launched in 2004. As of 2020, when Chang'e-5 brought lunar samples back to Earth, we have completed the first three phases of the program, which were "orbiting, landing, and returning." Based on scientific principles, we have kicked off the research work on the follow-up missions of the lunar exploration program during the 13th Five-Year Plan period (2016-2020). The fourth phase consists of four missions as planned.

The first mission was the Chang'e-4 probe, which, as we know, landed on the far side of the moon and was successfully completed. There will be another three follow-up missions. The Chang'e-6 lunar probe is expected to collect samples in more valuable areas of the moon and return home. Therefore, new lunar soil and samples will be brought back to the Earth. The Chang'e-7 probe is expected to conduct scientific exploration in the moon's polar regions and give us data on the water distribution of the moon. Finally, the Chang'e-8 probe will continue to explore the polar regions and test core technologies concerning the follow-up work of the research station.

Our fundamental goal throughout the four phases of the lunar exploration program is to establish a basic model for the research station and lay the foundation for us to cooperate with other countries in establishing the ILRS. We have been in close contact with our peers around the world and will jointly conduct exploration work regarding these missions. For example, a deal agreed with Russia means that the Chang'e-7 mission will conduct joint exploration with Russia's "lunar-26" project. Based on our current R&D progress, all work involved in the Chang'e-6 and Chang'e-7 missions will be completed in 2025. The R&D of the Chang'e-8 mission will kick off in the same year, and the probe will be launched by 2030. To conclude, we are set to achieve the expected results of the fourth phase of the lunar exploration program by 2030. Thank you.

Xing Huina:

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

Global Times:

Just now, Mr. Wu and Mr. Liu mentioned the ILRS project jointly launched by China and Russia. Could you further elaborate on this project? Also, how will the follow-up work be carried out? Thank you.

Wu Yanhua:

Thank you. It was reported that in March 2021, the Chinese and Russian governments signed a memorandum of understanding on the cooperation of the ILRS. In April, China and Russia's aerospace authorities issued a joint statement. In June, the two sides jointly released a roadmap and a guide for the ILRS, inviting all interested countries, international organizations, and partners to cooperate in the project. Just now, Mr. Liu introduced that the ILRS was proposed in 2016, and many countries around the world are also responding to it. In general, like the Antarctic and Arctic research stations, we tend to build a scientific experiment base at the lunar south pole in the future and build scientific research facilities in lunar orbit and on the lunar surface that can carry out multi-disciplinary and multi-objective scientific research activities.

First, China and Russia launched the ILRS based on their respective lunar exploration plans. The goal of the fourth phase for the Chinese lunar exploration program is to build a basic model of an international lunar scientific research station. We will use the next five years to conduct exploration before setting up a lunar research station, which are the objectives of China's Chang'e-6 and Chang'e-7 missions. Russia has other relevant arrangements. It will take us another 10 years or so to complete the construction of facilities. Like building a small town, a lunar research station must be equipped with energy, communication, navigation, long-distance transportation, lunar-earth round-trip capabilities, and ground support systems. There must also be a life support system if there are to be people in the station in the future. China and Russia also welcome the participation of international counterparts. I think these systems are future-oriented, which means that our plans for 2035 will focus on these tasks. After 2035, various countries and organizations will conduct scientific expeditions on the moon in stages according to their plans.

Second, China and Russia will sign an intergovernmental agreement. We have been negotiating in full swing and reached a consensus, which is expected to be signed as soon as possible this year. The Chinese and Russian space authorities will officially release the declaration on constructing an international lunar research station and publish the construction principles and purposes to the international community. Generally speaking, at all stages, at all levels of construction, including systems, sub-systems, and facilities, and in terms of sharing research data and space-ground support system, we have set no limits and welcome the world to join in its construction. The missions led by China and Russia are also open to cooperation, providing opportunities for other countries to participate and share scientific research data.

That's all for my answer to this question. Thank you.

Xing Huina:

Due to time constraints, today's press conference is concluded here. Thanks to all speakers and journalists. 

Wu Yanhua:

Thank you, friends from the media, for your concern, encouragement, and support for China's aerospace industry, as well as your promotion of aerospace knowledge. Thank you all!

Translated and edited by Xu Xiaoxuan, Zhang Liying, He Shan, Zhou Jing, Zhang Jiaqi, Chen Xia, Liu Jianing, Wang Wei, Wang Yanfang, Li Huiru, Liu Qiang, Zhang Rui, Liu Sitong, Zhu Bochen, Yang Xi, Wang Yiming, Lin Liyao, Zhang Junmian, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Guo Tingting, director general of the Comprehensive Department of the Ministry of Commerce (MOFCOM)

Xu Xingfeng, person in charge of the Department of Market Operation and Consumption Promotion of the MOFCOM

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

Chen Chunjiang, director general of the Department of Foreign Investment Administration of the MOFCOM

Chairperson:

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

Date:

Jan. 25, 2022

Xing Huina:

Friends from the media, good morning! Welcome to this press conference held by the State Council Information Office (SCIO). Today, we will introduce China's commerce development in 2021 and answer your questions. We are joined by Ms. Guo Tingting, director general of the Comprehensive Department of the Ministry of Commerce (MOFCOM), Mr. Xu Xingfeng, person in charge of the Department of Market Operation and Consumption Promotion of the MOFCOM, Mr. Li Xingqian, director general of the Department of Foreign Trade of the MOFCOM, and Mr. Chen Chunjiang, director general of the Department of Foreign Investment Administration of the MOFCOM.

Now, let's give the floor to Ms. Guo.

Guo Tingting:

Thank you. Friends from the media, good morning! Welcome to today's press conference, and thank you for your attention and concern for commerce development. Today marks the traditional Chinese Xiaonian Festival, a week before the Lunar New Year. Here, I wish everyone a happy Chinese New Year of the Tiger in advance! Next, I will introduce the general situation of commerce development.

Since the 18th National Congress of the Communist Party of China (CPC), guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the MOFCOM has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, promoted the building of a strong domestic market, advanced high-level opening up, and actively participated in global economic governance. By doing so, China has made new breakthroughs in commercial development. China has become the world's second-largest consumer economy. It has ranked first in trade in goods globally for five consecutive years. China is also the world's second-largest foreign direct investment destination, and its outbound direct investment ranks among the world's top. In addition, the country has established 21 free trade pilot zones, promoted the construction of the Hainan Free Trade Port, and signed the Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade agreement (FTA). 

In 2021, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the MOFCOM resolutely implemented the spirit of the 19th CPC National Congress and the plenary sessions of the 19th CPC Central Committee and followed the deployment of the Central Economic Work Conference and the government work report. We fully and faithfully applied the new development philosophy and promoted the fostering of a new pattern of development. We consolidated the gains in the fight against COVID-19 and social development achievements. The positioning of commerce work can be summarized in three important aspects: commerce as an important part of domestic circulation, commerce as an important link between domestic and international circulations, and commerce's important role in building a new development paradigm. With our focus on positioning in the above three important aspects, we carried out a portfolio of "5+5" key tasks. As a result, the commercial operation had a stable, sound, and better-than-expected performance. Foreign trade, foreign investment, consumption volume, and the proportion of investment in countries along the Belt and Road Initiative hit an all-time high. Furthermore, major breakthroughs were made in multilateral and bilateral cooperation. All this has put the implementation of the 14th Five-Year Plan off to a good start and made a positive contribution to the sustained recovery of the national economy.

First, domestic consumption gradually rebounded. Total annual retail sales of consumer goods rose 12.5% to 44.1 trillion yuan. Consumption has re-established itself as the key driver of economic development, accounting for 65.4% of total expenditure. First, urban and rural markets achieved recovery simultaneously. The retail sales of consumer goods in urban and rural areas increased by 12.5% and 12.1%, respectively. Second, the consumption of upgraded commodities increased significantly. The retail sales of commodities increased by 11.8%. Gold, silver, and other jewelry, sports and entertainment supplies, and cultural and office supplies of units above designated size increased by 29.8%, 22%, and 18.8%, respectively. Sales of new energy vehicles increased by 1.6 times. Third, spending on catering and other services saw an orderly recovery, with catering income rising by 18.6% from a year ago, close to the pre-epidemic level. The per capita education, culture and entertainment consumption, transportation and communication consumption, and health care consumption increased by 27.9%, 14.3%, and 14.8%, respectively. Fourth, new consumption models were further developed. China's online sales of physical goods expanded by 12% year on year to 10.8 trillion yuan in 2021, accounting for 24.5% of the total retail sales during the period. The "Online Chinese New Year Shopping Festival" and "Brand and Quality Online Shopping Festival" drove online retail sales of 1.6 trillion yuan. Offshore duty-free sales in south China's island province of Hainan increased by 83.1%.

Second, foreign trade moved up another notch. The total imports and exports of goods expanded 21.4% year on year to 39.1 trillion yuan. Exports rose 21.2%, while imports went up 21.5%, which were highlights of economic operation. First, the scale and share of foreign trade rose higher. Its volume exceeded the $5 trillion and $6 trillion thresholds over the year. The international market shares of exports and imports in the first three quarters were 15% and 12.1%, respectively, hitting record highs. Second, the vitality of the leading market players continued to increase. The number of enterprises involved in exports and imports increased by 36,000 to 567,000. The imports and exports of China's private sector registered an increase of 26.7%, accounting for 48.6% of the country's total foreign trade volume, 2 percentage points higher than the previous year. Third, the imports and exports to major trading partners maintained relatively rapid growth. Imports and exports to ASEAN, the European Union, and the United States increased by 19.7%, 19.1%, and 20.2%, respectively. Fourth, the commodity structure was further optimized. The exports of high-tech and high value-added products increased rapidly. The exports of machinery and electronic products increased by 20.4%, and the volume of new energy vehicles exports increased by 3 times. Fifth, the service trade saw faster upgrades, rising 14.7% year on year to reach 4.7 trillion yuan in the first 11 months of the year. The exports of culture and entertainment and intellectual property royalties, which are knowledge-intensive services, increased by 36.2% and 29.3%, respectively.

Third, absorption of foreign investment increased quickly. The whole year saw the actual use of foreign investment surpass 1 trillion yuan, which was its first time to reach 1.1 trillion yuan, realizing a growth of 14.9%. Newly-established foreign-funded enterprises totaled 48,000, up 23.5%. The quantity and quality of foreign investment both improved. Firstly, the structure of foreign investment continued to optimize. High-tech industries saw a 17.1% increase in foreign investment, bringing the share of the total to 30.2%. In high-tech manufacturing, the growth of foreign investment was 200% in manufacturing of equipment for electronic products manufacturing and 64.9% in general instruments and meters manufacturing. In high-tech services, the growth of foreign investment was 220% in e-commerce services and 25% in services for commercialization of scientific and research findings. Secondly, investments from major sources grew stably. Those from countries along the Belt and Road increased 29.4%. Those from Singapore and Germany grew 29.7% and 16.4%, respectively. Thirdly, the number of large projects grew quickly. The number of projects with contractual foreign investment of $50 million or more each grew 26.1%, and that with contractual foreign investment of $100 million or more grew 25.5%. Fourthly, highlands for opening-up saw remarkable results. A total of 21 pilot free trade zones (FTZs) actually utilized 213 billion yuan of foreign investment, taking up an 18.5% share of the total foreign investment.

Fourth, steady development was seen in the implementation of outward investment and cooperation and in the process of providing foreign aid. In the whole year, our direct outward investment reached 936.7 billion yuan, up 2.2%, with further structural improvements. Firstly, investment and cooperation continued to deepen in key regions such as those along the Belt and Road. Investment in BRI countries grew 7.9%, bringing the share of the total to 14.8%. Investment in the EU grew 13.4%. Secondly, fast growth was seen in investment in key industries. The investment in transportation, services for scientific research, and information technology grew 80%, 68.5%, and 5%, respectively, with the combined share of the three industries up by 3.1 percentage points. Thirdly, win-win results were achieved through cooperation. As of the end of 2021, the accumulated investment in overseas economic and trade cooperation zones stood at $50.7 billion, with a total of $6.6 billion of taxes being paid to host countries and 392,000 jobs being created locally. Fourthly, contracted projects were stable and growing. In U.S. dollar terms, the contractual value of newly-signed contracts grew 1.2%. The number of newly-signed contracts with a worth of at least $100 million each increased by 46. Fifthly, our foreign aid was carried out with high efficiency. We fully implemented the major measures regarding foreign aid announced by President Xi Jinping, and carried out more than 1,000 foreign aid projects throughout the year. We also carried out vaccine-related foreign aid to 107 countries and four international organizations with high efficiency. 

Fifth, multilateral and bilateral economic and trade relations saw new breakthroughs. Firstly, the strategy for boosting FTZs saw major progress. We made efforts for the RCEP to be enacted and implemented as scheduled. We formally applied for the membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA). We signed a protocol on upgrading our FTA with New Zealand and gained positive progress in negotiations for upgrading FTAs with South Korea and Singapore. Secondly, multilateral cooperation exerted a bigger role. We hosted the High-Level Session on the 20th Anniversary of China's Accession to the World Trade Organization (WTO) and thematic exhibitions. We completed the eighth review of the WTO on China's trade policies. We proactively participated in WTO negotiations regarding relative issues. We deepened cooperation regarding digital economy and supply chains and promoted inclusive policies in trade and investment under the mechanisms of the United Nations, Group of 20, the Asia-Pacific Economic Cooperation, the BRICS countries, and the Shanghai Cooperation Organization. Thirdly, bilateral and regional economic and trade cooperation further deepened. Remarkable results were achieved through the economic and trade cooperation between provincial-level regions in China and various states in the U.S. Trade between China and Russia reached new heights. We pushed for China and Singapore to develop the New International Land-Sea Trade Corridor together. We contrived practical measures for the eighth ministerial conference of the Forum on China-Africa Cooperation. We hosted the China-CEEC Expo. 

Also, we made solid efforts for epidemic prevention and control and ensured the supply of daily necessities. We compiled the plan for commercial development, the plan for high-quality development of foreign trade, and five special-purpose plans for the 14th Five-Year Plan period (2021-2025).

In 2022, the Ministry of Commerce will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the principles of the 19th National Congress of the Communist Party of China (CPC) and all plenary sessions of the 19th Party Central Committee in full. We will act on the principles of the Central Economic Work Conference, and carry forward the great founding spirit of the Party. We will prioritize stability while seeking progress, apply the new development philosophy completely, accurately and thoroughly, and facilitate the construction of the new development paradigm. We will advance supply-side structural reform as the main task, ensure stability on six key fronts and maintain security in six key areas, and play the three important roles of commerce-related work. We will carry out Covid-19 prevention and control and pursue commerce development in a coordinated way, ensure coordination in pursuing development and upholding security, push for the continued recovery of consumption, stabilize the fundamentals of foreign trade and foreign investment, ramp up efforts in high-level opening-up, keep commerce-related situations running within an appropriate range, and push for the high-quality development of commerce. We will better serve the big picture of socioeconomic development and welcome the successful convening of the 20th National Congress of the CPC with outstanding performances. 

Thank you all!

Xing Huina:

Thanks for Mr. Guo's introduction. Now we start taking questions. Please state the news outlet you work for before raising questions. 

CCTV:

What achievements did the MOFCOM make in promoting economic and trade cooperation under the Belt and Road Initiative (BRI) in 2021? What is the MOFCOM's work plan this year? Thank you. 

Guo Tingting:

Thank you for your questions. I'll brief you on them. Given the profound changes and the pandemic conditions not seen in a century, China continues to uphold the principle of extensive consultation, joint contribution, and shared benefits, and aims for high-standard, people-centered, and sustainable growth. We have worked with relevant parties to promote the high-quality BRI development through joint efforts. Remarkable achievements have been made, with participating countries enjoying common development and mutual benefit. The joint construction of the Belt and Road has developed into a well-received global public product and a platform for international cooperation.

In 2021, the MOFCOM implemented the decisions and plans of the CPC Central Committee and the State Council, stepped up efforts to promote the economic and trade cooperation under the BRI, and made new contributions to the high-quality BRI development. 

First, Unimpeded trade saw new progress. In 2021, total trade of goods between China and countries along the Belt and Road reached 11.6 trillion yuan, marking a new record in eight years. It registered a year-on-year increase of 23.6% and accounted for 29.7% of China's total foreign trade. Cross-border e-commerce and other new business forms developed rapidly. A lot of overseas warehouses were built and put into use. The first overseas smart logistics platform (https://ols.zjmade.cn:18084/consumer/home) was launched to match supply and demand on overseas warehouses. The number of China-Europe freight train trips surged by 22% year on year to 15,000, and a total of 1.46 million twenty-foot equivalent units of goods were handled, up 29% year on year. The New International Land-Sea Trade Corridor witnessed rapid progress. China and Singapore signed a cooperation plan, and jointly held the 2021 CCI-ILSTC International Cooperation Forum.

Second, new progress was made in investment cooperation. Direct investment to countries along the Belt and Road grew 7.9% year on year to 138.45 billion yuan in 2021, accounting for 14.8% of total outbound investment. Companies from countries along the Belt and Road have been optimistic about development opportunities in China. As such, their direct investment reached $11.25 billion (around 74.28 billion yuan), surpassing the threshold of $10 billion for the first time. Steady progress has been made in the construction of BRI projects. The accomplished turnover of contracted projects in countries along the Belt and Road totaled 578.57 billion yuan, accounting for 57.9% of the country's total. The assistance programs in poverty alleviation, healthcare, education, sports, and other areas related to people's livelihood proved to be effective, and the construction of the China-aided future headquarters of the Africa Centers for Disease Control and Prevention went smoothly. 

Third, mechanisms and platforms were well improved. We established with relevant countries eight unimpeded trade working groups and investment and economic cooperation working groups. We signed a Memorandum of Understanding (MoU) with Senegal on e-commerce cooperation, and signed MoUs with Hungary and Russia to enhance cooperation in green development and digital economy. The cooperation mechanisms, thereby, have been improved and more channels have been established to ensure better communication. Moreover, we held successfully a series of exhibitions last year, including the China International Import Expo (CIIE), the China Import and Export Fair (also known as the Canton Fair), the China International Fair for Trade in Services (CIFTIS), the China-ASEAN Expo, and the China-Africa Economic and Trade Expo, which have promoted economic and trade cooperation with relevant countries.

In November 2021, General Secretary Xi Jinping delivered an important speech at the third symposium on the Belt and Road Initiative, charting the course and providing the fundamental guiding principles for promoting the BRI through joint efforts in the new era. In 2022, the MOFCOM will implement the spirit of the important speech made by General Secretary Xi Jinping and take the economic and trade cooperation under the BRI as the priority. We will continue to reinforce the fundamentals of the cooperation and steadily expand new cooperation areas. We will ramp up efforts to build the iconic BRI projects and strengthen risk prevention and control so as to promote the high-quality development of the BRI throughout joint efforts and better serve the building of the new development paradigm. Thank you.

Phoenix TV:

My question is about consumption. As we know, in 2021, the total retail sales of consumer goods grew 12.5% year on year. How does the MOFCOM evaluate the recovery of the consumer market? Are there any features and highlights you'd like to share? Thank you.

Xu Xingfeng:

I'll answer your questions. I'm delighted to meet with the media on China's Little New Year, which falls about a week before the Lunar New Year. Thanks for your attention to the work related to consumption, and I also hope that the media will continue to keep an eye on this field.

Just now, Ms. Guo provided a comprehensive introduction to the operation of China's consumer market in 2021, and I'd like to add more information about it. Last year, in spite of the adverse impact of the epidemic, China's consumer market maintained a steady recovery, showing great vitality and resilience. We have made a good start for the 14th Five-Year Plan. The retail sales of consumer goods totaled 44.1 trillion yuan in 2021, an increase of 12.5% over 2020 and an average increase of 3.9% over the past two years. Throughout the whole year, the features and highlights are mainly reflected in the following four aspects.

First, the innovation-driven features are evident. Various new technologies and concepts have been broadly implemented in the consumption area. New business formats and new models such as curated retail have been rapidly employed. Furthermore, new scenarios like experimental, immersive, and interactive consumption continue to emerge. The integration of business, tourism, and online and offline activities has also been accelerated. Online retail sales reached 13 trillion yuan in 2021, up 14.1% from the previous year.

Second, smart consumption has increased rapidly. The retail sales value of communication equipment by enterprises above the designated size grew by 14.6% over the previous year. The shipment of 5G mobile phones reached 266 million, up 63.5%, which accounted for 76% of total mobile phone shipments in the same period. The sales volume of smart products on many e-commerce platforms, such as smart door locks, smart bathrooms, and floor-sweeping robots, increased by more than 30%.

Third, green consumption is booming. Taking the sales of automobiles as an example, the sales volume of new energy vehicles reached 3.521 million, an increase of 1.6 times over the previous year. It means that, for every 8 vehicles sold, 1 was a new energy vehicle. And the used car transaction volume, which reflects the circular economy, reached 17.585 million units, an increase of 22.6%. And the ratio of used cars sales to new vehicles sales reached 0.67 to 1.  

Fourth, ice and snow consumption continued to rise. As we all know, the Beijing Winter Olympics will be held in a couple of days. There has been a boom in ice and snow consumption in different places. While following proper epidemic prevention and control procedures, many places, such as Beijing, Jilin, Heilongjiang, Shanghai, and Hubei, have launched various kinds of ice and snow consumption activities. Meanwhile, the sales volume of ski products on several e-commerce platforms more than doubled.

These are the highlights and features of the consumption. At the same time, it has been noticed that consumption in many regions, industries, and varieties has recovered slowly due to the pandemic and other factors. Micro, small and medium-sized enterprises and self-employed individuals are still confronting difficulties in their operations. As a result, we should still make further efforts to maintain the steady development of consumption.

China News Service:

In 2021, China hit another record high on its scale of foreign investment. What are the prospects for this year? The Central Economic Work Conference proposed that national treatment should be implemented to foreign-invested enterprises to attract more investment from multinational corporations. What new measures will the Ministry of Commerce take in this regard? Thank you.

Chen Chunjiang:

Thank you for your question; I'll answer it. The world is experiencing the combined impacts of major changes and a pandemic unseen in a century. And the external environment has become more complicated. The work of stabilizing foreign investment still faces significant challenges. The United Nations Conference on Trade and Development (UNCTAD) predicts that it will be difficult to achieve rapid growth on global cross-border investment this year. The restructuring of the international industrial chain has become more nearshore, localized, and regional, and the competition for attracting investment among countries has intensified. In addition, the global epidemic has continuously affected cross-border investment promotion activities. At the same time, domestic enterprises have also been facing the pressure of rising prices for labor, land, and raw materials.

Despite these challenges, we possess the strong leadership of the Central Committee of the Communist Party of China with Comrade Xi Jinping at its core. We have the advantages of the socialist system with Chinese characteristics. We have maintained a leading global position in economic development and Covid-19 response. We also enjoy favorable conditions, such as a complete system of industries, improved infrastructure, and abundant human resources. And there are many super-large markets to attract foreign investment. Therefore, foreign investment in China is generally expected to be good. Reports from major foreign chambers of commerce show that China has still been one of the major investment destinations for multinational corporations. For example, the German Chamber of Commerce in China just released the 'business confidence survey 2021/22' last week. Its results show that German companies in China have confidence in the growth of the Chinese market. And 71% of companies plan to continue to increase investment in China. So, in general, we are confident we will maintain stable foreign investment in 2022.

We will fully implement the principles of the Central Economic Work Conference, adhere to the general principle of pursuing progress while ensuring stability, and focus on 'stabilizing the overall performance of foreign trade and foreign investment.' Also, we will follow the requirements of the National Business Work Conference, focus on maintaining the existing stock, explore increments, and optimize the structure. We will focus our work on the following six areas.

First, we will make continued efforts to open China to the outside world at a higher level. We should fully implement the national negative list and pilot FTZ negative list for foreign investment (2021 Edition) to ensure that the opening-up measures in automobile manufacturing and other sectors are taken effectively to attract more multinational companies to invest in China.

Second, we will ramp up efforts to improve support policies. For example, we have revised the industry catalog to boost foreign investment and fully leveraged the effect of preferential policies such as land and tax policies. This will lead to more foreign investment in sectors like advanced manufacturing, modern services, high and new technology, green and low-carbon and the digital economy, and also in China's central and western regions.

Third, we will continuously improve services. We will improve the mechanism of special working groups for key foreign-funded projects, respond quickly to and solve problems encountered by foreign-funded companies in a timely manner, and provide services to ensure the stable operation of the companies. We will ensure services for key foreign-funded projects in land, energy, environmental protection, and personnel entry and exit so as to promote the early signing, production, and fulfillment of projects.

Fourth, we will continuously leverage the role of platforms. We will make use of open platforms such as pilot FTZs, free trade ports, and comprehensive demonstration zones for expanding opening up in the service sector, align them with high-standard international economic and trade rules, and accelerate institution-based opening-up. We will implement the new assessment and evaluation methods for national economic development zones, vigorously develop an open economy, and make them major platforms for stabilizing foreign trade and foreign investment.

Fifth, we will continuously promote investment. We will run a successful 22nd China International Fair for Investment and Trade, hold various forms of investment promotion activities, and promote foreign-funded projects to communicate in key industries. We will organize multinational companies to go on trips around China so as to better support localities in attracting investment.

Sixth, we will continuously improve the business environment. We will effectively implement the Foreign Investment Law and the regulations for its implementation, and continuously improve supporting rules. We will make full use of the mechanism for handling complaints by foreign-funded companies, better protect the legitimate rights and interests of foreign investors, and ensure the national treatment of foreign-funded enterprises. We will strive to create an even better business environment and make China a popular destination for foreign investment.

That is all I have for it. Thank you.

Xinhua News Agency:

My question is about foreign trade. China's foreign trade registered a brilliant performance in the past year, but some agencies predict that it will be difficult to sustain a high growth this year. How does the Ministry of Commerce view foreign trade this year? What are your specific plans for stabilizing foreign trade? Thank you.

Li Xingqian:

Thank you. This is also a question of wide attention to all sectors of society. In general, on top of the $6.05 trillion volume and 30% growth rate last year, the foreign trade situation is grim this year, with unprecedented difficulties and pressure in maintaining steady growth.

From the perspective of demand, global external demand growth faces two big uncertainties. First, the pandemic has repeatedly delayed the recovery of the global economy. According to a new U.N. report, the global economic recovery is under great strain due to COVID-19, labor shortages, supply chain disruptions, and rising inflation. Global growth is forecast to slow from 5.5% in 2021 to 4% this year. The WTO expects growth in the volume of global trade in goods to slow from 10.8% in 2021 to 4.7%. Second, global systemic risks are rising as a result of an uneven recovery. Affected by the vaccination gap and policy differences, low-income countries and developed economies see a widening gap of recovery in between, accompanied by depreciating currencies and high inflation. The rapid withdrawal of stimulus policies in some countries may lead to shrinking demand and price fluctuations, which in turn will affect China's export in related industries.

From the perspective of supply, the global industrial chain and supply chain face two major destabilizing factors. First, the accelerated restructuring of the global supply chain and the one-sided pursuit of bringing industries back by developed economies are dividing the market and reducing the efficiency of global resource allocation. Second, disruptions and bottlenecks in the global supply chain can hardly be thoroughly alleviated in the short term. Problems such as high raw material prices, structural imbalances in shipping capacity, and shortages of essential components like chips have persisted. The overall costs of our foreign trade companies, especially small, medium, and micro foreign trade companies, have risen markedly, while their operating risks and burdens remain high. Therefore, the companies feel reluctant to accept orders even if they have orders out there, while they see no profit increase despite a rise in income.

We should face straight up these difficulties and strengthen our confidence. China's foreign trade sector boasts a solid foundation, and the fundamentals sustaining its long-term growth remain unchanged. This year, in terms of foreign trade, we will give top priority to stability and pursue progress while ensuring stability. We will pay more attention to better quality than higher quantity. With the joint efforts of various localities, departments, and foreign trade companies, we are confident that the foreign trade will get off to a good start and remain within a reasonable range throughout the year.

Based on the current situation, we have designated 2022 as a year for foreign trade to consolidate and advance, with a focus on increasing the comprehensive competitiveness of China's foreign trade. We will take four specific actions:

First, we will take cross-cyclical measures to stabilize foreign trade. We will make our policies serve intended purposes and make further use of export credit insurance, manage credit supply in the foreign trade sector well, and enhance the ability of companies to cope with exchange rate risks. We will further step up trade facilitation and effectively help companies overcome difficulties.

Second, we will adopt a diversified market approach. We will give fully play to the role of the unimpeded trade working groups, make better use of the negotiated or signed free-trade agreement and organize major expos, such as China Import and Export Fair, the CIIE and the CIFTIS, so as to help enterprises in reinforcing their traditional markets and expand emerging ones. 

Third, we will ensure the smooth supply chains for foreign trade. While cultivating various types of platforms and carriers including national industrial parks for processing and trade, demonstration zones for creative promotion of imports and foreign trade transformation and upgrade bases, we will also continue promoting the streamlined flow of goods, materials and settlements.

Fourth, we will encourage high-quality and innovative-based foreign trade. We will harness the leading role of new business forms such as cross-border e-commerce and overseas warehouses, as well as the role of new models to build leading zones for digitalization of global trade and promote the healthy development of green trade. Thank you.

Red Star News: 

China has absorbed 1,149.36 billion yuan in foreign investment in 2021, realizing a double-digit growth. What are the reasons behind this achievement?

Chen Chunjiang:

Thank you for your question. 2021 saw China's first breakthrough in absorbing foreign investment to exceed one trillion yuan, up 14.9% to reach 1,149.36 billion yuan, which equals $173.48 billion, up 20.2%; the average two-year growth was 12.1% compared with 2019, 6.4 percentage points higher than the global average. We attribute such achievements to the following five reasons:

First, the effect of China's opening-up is gradually emerging. China has been committed to opening its door wider to the world, further shortening the negative list for foreign investment, fully lifting foreign equity caps in the automotive industry and clearing barriers for the manufacturing industry in pilot free-trade zones. We have also ensured that the RCEP came into effect as scheduled, officially applied to join CPTPP and DEPA and continuously released active signals. Therefore, more foreign investors have seen more market opportunities and have intensified their investment in China – with 48,000 new enterprises being established in 2021, up 23.5% year-on-year. 

Second, the effect of stabilizing foreign investment is continuously emerging. The MOFCOM has acted with firm resolve to implement requirements made by General Secretary Xi Jinping on stabilizing the overall performance of foreign trade and foreign investment, and promulgated 22 supportive measures on stabilizing foreign investment under new development paradigm in 2021. It has also guided local authorities in issuing more than 140 policies and documents. FDI in eastern, central and western China achieved an all-round growth, increasing by 14.6%, 20.5% and 14.2% respectively, and 20 provinces registered double-digit growth, offering significant support for the stability of foreign investment nationwide.

Third, the driving effects of open platforms are increasingly demonstrated. Investment liberalization and facilitation measures on opening platforms such as free-trade zones, free-trade ports and pilot demonstrations for open services have been released and are attractive investment projects. In 2021, foreign investment rose 19% across 21 pilot free-trade zones, while Hainan Free Trade Port doubled its previous figure in foreign investment. The "1+4" open and comprehensive demonstration zones in service sectors, namely, Beijing, Tianjin, Shanghai, Hainan and Chongqing, account for 33.4% of the national total in foreign investment, exemplifying these high-level opening platforms' strong attraction for foreign investment.

Fourth, efforts in stabilizing market expectations are beginning to show results. A special working group for major foreign projects under the coordination mechanism of foreign trade and investment has strengthened their services for major foreign enterprises, including hosting 75 exchange activities for foreign enterprises, chambers of commerce and associations over the course of the year, guiding local authorities in launching over 1,800 dialogues as well as communicating with more than 40,000 foreign businesses, thus making their policies known to the public and promptly responding to concerns from the enterprises. We have coordinated and resolved more than 1,000 difficulties concerning foreign employees' entry, customs clearance for goods as well as vaccinations for staff members. All these efforts have effectively stabilized the operations of these foreign enterprises. Relevant departments actively released policies and measures targeting some common issues, such as extending preferential individual income tax policies on foreign staff and drafting measures to safeguard foreign businesses' equal access to government procurement. The foreign enterprises had more confidence in market expectations and investments when they truly felt that the Chinese government welcomes foreign investment. A recent survey conducted by the MOFCOM showed that 94.9% of enterprises are optimistic about their future business, among more than 3,000 major foreign companies surveyed.

Fifth, efforts to create a better business environment are paying off. All local authorities and departments have ramped up efforts to sort out laws, regulations, and documents, not in line with the Foreign Investment Law. More than 500 laws, regulations, and documents have been formulated, revised, and repealed. In addition, the MOFCOM has improved the complaint mechanism and related working network for foreign-invested enterprises (FIEs) and helped FIEs coordinate and settle a series of complaint matters, thus protecting the legitimate rights of foreign investment. We continue to foster a business environment based on market principles, governed by law, and up to international standards, to ensure that FIEs can access our market, gain a foothold here and thrive. 

We have successfully completed the tasks of ensuring stable foreign investment in 2021. Generally speaking, this progress is the result of the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core and the joint efforts of all local authorities and all departments. Next, we will firmly implement the arrangements of the CPC Central Committee and the State Council for ensuring stability on the six fronts and maintaining security in the six areas. We will make stability our priority and pursue stable performance while making new progress. Solid measures will be taken to ensure stable foreign investment in 2022, aiming to greet the gathering of the 20th National Congress of the CPC with outstanding achievements. 

These are my answers. Thank you!

Global Times:

There have been sporadic epidemic outbreaks recently. So how does the MOFCOM view China's consumption sector this year? What specific measures will be taken to boost consumption? Thank you.

Xu Xingfeng:

Thank you for your questions. I will answer your questions. Based on a comprehensive assessment, we believe that in general, China's consumption sector will continue to restore development in 2022. Our conclusion is based on three aspects, which are as follows: 

First, despite the sporadic epidemic outbreaks, China has taken a more precisely-targeted and science-based approach in policies of regular COVID-19 prevention and control, thus stabilizing consumer expectations. 

Second, the middle-income group continues to expand, and residents' income has registered steady growth. In 2021, China's per capita GDP surpassed 12,000 US dollars, and residents' per capita disposable income reached 35,000 yuan, up by 9.1% from the previous year. So, the consumer fundamentals are secure. 

Third, the policies and measures on expanding domestic needs and boosting consumption, being put into place and producing positive results gradually, will provide strong support for consumption recovery, meaning the consumption policies are in good shape. 

We conclude through the above analysis that in general, China's consumption sector will continue to restore development.

Next, the MOFCOM will fully implement the guiding principles of the 19th National Congress of the CPC and all the plenary sessions of the 19th CPC Central Committee and put into action the arrangements of the Central Economic Work Conference. We will firmly implement the strategy of expanding domestic demand. We will make it our priority to maintain stability and pursue steady progress. We will coordinate the works on COVID-19 prevention and control and boosting consumption. We will work to promote continued recovery and upgrading of consumption, to better serve the building of a new development paradigm. Our works will focus on the following five aspects:

First, we will upgrade the traditional consumption sector. Automobiles, household appliances, furniture and catering, are the four major consumption sectors and the foundational pillars of consumption. To deepen reform on automobiles circulation, we will promote the transformation from the administration of purchase to the administration of use. We will revise the Measures for the Administration of the Circulation of Second-hand Automobiles and other related regulations to expand the circulation of second-hand automobiles. We will promote the consumption of new energy vehicles. We will also encourage household appliance and furniture replacements. Furthermore, we will push for service consumption, such as catering, to restore development.

Second, we will accelerate new types of consumption. New types of consumption are a major driving force to boost consumption. Next, we will support the development of new business forms and models and new scenarios. New types of consumption, such as smart products consumption, tailored products consumption, experience consumption, and fashion consumption, will be developed. When I answered a previous question, I gave an introduction about the characteristics of innovation-driven consumption. And these are the new types of consumption. We will promote the innovative development of time-honored brands to boost brand-based consumption. We will call for a simple, moderate, and low-carbon lifestyle to increase green consumption. We will work to better play the roles of platforms such as the CIIE and the China International Consumer Products Expo and expand the imports of quality consumer goods. These are new types of consumption, brand-based consumption, green consumption, and imports of quality consumer goods. 

Third, we will step up upgrading urban consumption. The sheer size of urban consumption makes it take up a large proportion of the consumption sector. Therefore, we will speed up fostering and building international consumption center cities, accelerate the high-quality development of pedestrian streets, and pilot the building of smart shopping districts and smart stores to provide urban residents with more quality service. We will also accelerate the development of a "15-minute community life circle" and improve the community-level business service facilities, to provide urban residents with more convenient services. 

Fourth, we will strengthen the weaknesses of rural consumption. The potential of rural consumption is enormous, and the prospects for its development are excellent. Next, we will accelerate the building of the county-level business system and improve the county-level business network and the three-tiered logistics delivery system at the village, township, and county levels. We will also expand the coverage of rural e-commerce. Thus, we will increase farmers' incomes and improve rural consumption. 

Fifth, we will launch campaigns to boost consumption. Provided that prevention and control protocols were duly observed, we will continue to launch events such as the National Consumption Promotion Month, online shopping festivals, which boost brand and quality consumption, and Chinese food festivals. We will also provide guidance for local consumption promotion campaigns that combine business, tourism, cultural, and sports sectors, adopt both online and offline measures, and connect urban and rural areas. In this way, we can keep market expectations stable and bolster consumption confidence.

ThePaper.cn:

What are the achievements and experiences that China's pilot FTZs have secured in terms of expanding opening-up in 2021? How will the MOFCOM arrange the work on pilot FTZs this year? Thank you.

Guo Tingting:

Thank you. I'll take your questions. In 2021, the MOFCOM has worked with relevant government bodies and resolutely implemented the decisions made by the CPC Central Committee and the State Council. We have been playing our part to help foster a new development paradigm. A series of new measures were introduced in pilot FTZs to expand opening-up, and new progress was made in various fields.

First, the MOFCOM released China's first negative list for cross-border trade in services at the Hainan Free Trade Port. The list outlined 70 special management measures in 11 categories and was a breakthrough of China's management model of trade in services. It is also another important measure taken by China to pursue high-level institutional opening up.

Second, the MOFCOM introduced a total of 19 reform and innovative measures concerning trade and investment facilitation and promotion in pilot FTZs. These measures cover five aspects, including the facilitation of trade, investment, international logistics, and financial services in supporting the real economy and exploring the role of the judiciary in guaranteeing trade and investment facilitation. 

Third, the MOFCOM updated the negative list for the market access of foreign investment in its 2021 edition. The number of special administrative measures applied in this edition was reduced to 27, and all measures applied to the manufacturing industry were removed. The openness of China's service industry continues to expand.

Fourth, the MOFCOM promoted the latest group of 18 "best practice cases" involved in trade and investment facilitation, financial services that support real economy, SOE reforms, environmental protection, and other fields. A total 278 achievements concerning systemic innovation were promoted on a national level, which facilitates the continuous improvement of China's business environment.

In 2021, the actual use of foreign capital of all 21 pilot FTZs in China reached 213 billion yuan, and their import and export volume hit 6.8 trillion yuan, up 19% and 29.5% year on year, respectively. With less than four-thousandths of China's land area, these 21 pilot FTZs have achieved 18.5% of the country's foreign investment and 17.3% of the foreign trade, making a great contribution to stabilizing foreign trade and investment.

Looking forward, the MOFCOM will follow the decision being made by the CPC Central Committee and the State Council, doubling the efforts to carry out planning for and promoting the high-quality development of pilot FTZs. The MOFCOM will work to dovetail the construction of pilot FTZs with fostering a new development paradigm and give full play to the exemplary and leading role of pilot FTZs in promoting reform and opening up. Specific measures are as follows:

First, we will further expand the high-level opening-up. We will pilot to align policies in the pilot FTZs where conditions permit and the free trade port with internationally high-standard economic and trade rules in a bid to promote high-level institutional opening up. We will also work to introduce a negative list for cross-border trade in services in pilot FTZs.

Second, we will further carry out deeper reforms. Focusing on key sectors, crucial links, and fundamental institutional arrangements, we will establish pilots of deeper reform, get rid of institutional barriers, and work to achieve more high-quality institutional innovation results. More economic administrative powers at the provincial level will be delegated to pilot FTZs.

Third, we will further take the lead in promoting high-quality development. We will encourage pilot FTZs to carry out integrated innovation throughout the entire industrial chain based on the actual local situation. We will also support them to attract global resources and factors of production of the industrial chain and develop featured and dominant industries in a bid to build more world-leading industrial clusters.

That concludes my response. Thank you.

Xing Huina:

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

Yicai:

We noticed that China's total imports and exports of goods exceeded $6 trillion in 2021. What is the driving force behind China's rapid foreign trade growth? What role has foreign trade played in promoting China's economic development as well as the global economic and trade recovery? Thanks.

Li Xingqian:

Thank you for your care and support for China's foreign trade. Foreign trade growth was a major highlight of China's economic performance in 2021. The fundamental reason is that the Chinese government calmly responded to various risks and challenges while maintaining its position as a global leader in economic development and COVID-19 response, thus fully leveraging its overall foreign trade advantage. There are four major driving forces behind China's rapid foreign trade growth: policies, external demand, supply and new business forms.

First, relevant policies have been prudent and effective. The Chinese government has cherished trade market entities, maintained the continuity, consistency and sustainability of its policies, and launched a series of support policies regarding tax and fee reductions, financing and credit guarantees. Meanwhile, the government has formulated a plan to promote the high-quality development of foreign trade during the 14th Five-Year Plan period (2021-2025) and opinions on accelerating the development of new business forms and models of foreign trade. It has also conducted cross-cycle adjustment. Thanks to these measures, market entities and expectations have been stabilized.

Second, external demand gradually recovered. The global economy as a whole is showing recovery momentum. The WTO estimates global trade in goods grew by 10.8% in 2021. Various countries were controlling the pandemic, resuming production and promoting consumption, which increased the direct and indirect demand for Chinese products. China's exports of intermediate goods, capital goods and consumer goods increased by 27.9%, 13.7% and 13.1%, respectively.

Third, the supply capacity is strong. China has a complete industrial system, with comprehensive supporting facilities and strong resilience within its industrial chain and supply chain. It can quickly adapt to changes in international market demand and swiftly increase supply. At the same time, China and its neighboring countries have formed a regional industrial chain of efficient cooperation, which further enhances our supply advantages.

Fourth, the business format accelerates innovation. China is a fertile ground for the vigorous growth of new business formats and new models such as cross-border e-commerce. Various platforms and merchants have given full play to their advantages in spheres such as online marketing, contactless transactions and short-distance distribution to help foreign trade show a strong momentum of expansion despite COVID-19 impacts. The scale of cross-border e-commerce imports and exports reached 1.98 trillion yuan, an increase of 15%, and market procurement trade exports increased by 32.1%. China now has more than 1,500 comprehensive foreign trade service enterprises and more than 2,000 overseas warehouses, and we've built more than 130 bonded maintenance projects.

In 2021, the achievements of China's foreign trade development were well-rounded and multi-level, which effectively served the construction of the new development pattern and made important contributions to the recovery of the global economy and trade.

From the domestic perspective, foreign trade had three major achievements: First, it has effectively driven GDP growth. Net exports of goods and services drove the annual GDP growth by 1.7 percentage points, with a contribution rate of 20.9%. Second, it promoted stable employment. There were 567,000 foreign trade enterprises with an actual import and export performance throughout the year, directly and indirectly prompting the creation of 180 million jobs. Third, it maintained the stability of the industrial chain and supply chain. It has guaranteed the supply of important resources and key components, playing an indispensable role in safeguarding domestic supplies and stable prices and promoting the smooth operation of various upstream and downstream industries.

From the international perspective, China's foreign trade made at least three major contributions: First, it actively supported the global fight against the pandemic and promoted the building of a community with a shared future for human health. China has exported anti-pandemic materials in an orderly manner and provided more than 2 billion doses of vaccines to the world, making it the world's largest provider. Second, it effectively filled the gap between global supply and demand and provided timely products and services for the production and people's livelihood in various countries. Third, we shared China's development opportunities with the world. We have successfully held important international expos such as the CIIE, the China Import and Export Fair and the CIFTIS. In the first three quarters of last year, China contributed 14.1% to global import growth. China actively advocates free, fair and green trade and deepens bilateral and multilateral economic and trade cooperation. It is the backbone of global economic and trade recovery. Thank you.

Xing Huina:

Thank you to the speakers for summarizing the commerce development in 2021 and sharing the outlook for 2022 with us. If you still have questions, the persons in charge of the press and publicity work of the Ministry of Commerce are also here, and you can continue to keep in touch with them after the press conference. That's it for today's press conference. Thanks to the four speakers, and also thanks to the media friends.

Translated and edited by Yan Xiaoqing, Liu Qiang, Zhang Jiaqi, Zhang Rui, Zhang Tingting, Li Huiru, Cui Can, Liu Sitong, Zhu Bochen, Huang Shan, Ma Yujia, Wang Qian, Wang Yiming, Wang Wei, Gong Yingchun, Yang Xi, Zhang Liying, Jay Birbeck, Drew Pittock and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Tian Yulong, chief engineer and spokesperson of the Ministry of Industry and Information Technology (MIIT)

Luo Junjie, director general of the Bureau of Operation Monitoring and Coordination of the MIIT

Zhao Zhiguo, director general of the Bureau of Information and Communications Administration of the MIIT

Chairperson:

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

Date:

Jan. 20, 2022

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Tian Yulong, chief engineer and spokesperson of the Ministry of Industry and Information Technology (MIIT). Mr. Tian will brief you on the development of the industry and information technology sector in 2021 and take your questions. We are also joined by Mr. Luo Junjie, director general of the Bureau of Operation Monitoring and Coordination of the MIIT, and Mr. Zhao Zhiguo, director general of the Bureau of Information and Communications Administration of the MIIT.

Now, let's give the floor to Mr. Tian.

Tian Yulong:

Ladies and gentlemen, friends from the media, good morning. I'd like to begin by expressing my heartfelt gratitude to you for your attention and support for developing the industry and information technology sector. Next, I'll brief you on the general situation of 2021. 

Since the 18th National Congress of the Communist Party of China (CPC), the CPC Central Committee with Comrade Xi Jinping at its core has made significant decisions to develop China into a manufacturer of quality and build the country's strength in cyberspace. Under the guidance of these decisions, China's industry and information technology sector has seen historic achievements and transformation, providing strong support for building a moderately prosperous society in all respects. In 2021 especially, against the backdrop of complex and challenging environments and multiple risks and challenges, all government bodies and departments involved in the industry and information technology followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We earnestly carried out decisions made by the CPC Central Committee and the State Council and worked hard to coordinate epidemic prevention and control with economic and social development. We forged ahead and overcame difficulties, redoubled our efforts to ensure stability on the six fronts (employment, finance, foreign trade, foreign investment, domestic investment, and market expectations), implemented the tasks of guaranteeing stability in six areas (employment, people's livelihood, market entities, food and energy, stability of industrial and supply chains, and grassroots operations), and thoroughly carried out the strategies of developing China into a manufacturer of quality and building the country's strength in cyberspace. As a result, China's industrial economy sustained recovery and development. Its information technology sector made positive progress, putting the implementation of the 14th Five-Year Plan off to a good start. The overall growth of industry and information technology in 2021 has the following four features:

First, the industrial economy saw sustained recovery and development. In 2021, following the requirements being made by the Central Economic Work Conference, notably safeguarding macroeconomic stability and ensuring that the economy operates within an appropriate range, we have given greater priority to promoting the stable growth of the industrial sector and taken a series of measures. Through strengthening the guiding role of planning and policies, we introduced and implemented various plans from the 14th Five-Year Plan concerning key sectors and fields of industry and information technology. We formulated a series of policies and measures that ensure the industry's stable growth. We proactively addressed the adverse impact of sporadic pandemic outbreaks, the price hikes in bulk raw materials, and the constraints on energy. We adopted coordinated policies, managed to guarantee the interests of market players, stabilize investment and foster consumption, and effectively ensured the generally balanced and stable development of industrial production. In 2021, China's added value of industries above designated size grew by 9.6% year on year, or an average two-year growth rate of 6.1%. Among them, the growth rate in the third quarter of 2021 declined. However, as our policies on revitalizing the industrial economy took effect, the declining trend was reversed, and the growth rate of the industrial economy rebounded gradually. Under the strong leadership of the CPC Central Committee and the State Council, we managed to overcome various obstacles. As a result, the development of the industrial economy in 2021 generally went well with satisfying results, and this did not come easily.

Second, industrial transformation and upgrading accelerated notably. In 2021, we focused on stabilizing the industrial and supply chain, sped up the digital and green transformation of industries, spared no effort to enhance the core competitiveness of the manufacturing industry, and strived to facilitate the transformation and upgrade of traditional industries as well as the development of emerging industries. As a result, we have accomplished achievements in three aspects. First, the digital transformation of the manufacturing sector was accelerated, and the innovative development of the industrial internet saw remarkable progress. Security systems for internet platforms were established, and the "5G+industrial internet" was applied in 20 scenarios and 10 key industries. The capacity of innovative applications ranked in the top tier globally. Second, the green and low-carbon development of industries saw positive progress. We formulated and published implementation plans concerning carbon neutrality in industrial fields and key sectors and steadily advanced the green transformation of traditional industries. The output of crude steel in 2021 decreased by 32 million metric tons compared with the previous year, down 3%. In the first 11 months of 2021, the energy consumption per unit of the added value of industries above the designated size reduced 5.5% year-on-year, which was remarkable progress. Third, emerging industries maintained a relatively fast growth, and high-tech manufacturing and equipment manufacturing grew a more vital driving force and saw rapid development. Industrial software, big data, cloud computing, artificial intelligence, and other new technologies, industries, and business forms projected a strong growth rate. The new energy vehicles (NEVs) sector, which attracted widespread attention, saw rapid development, and more than 3.5 million NEVs were produced and sold respectively in 2021, up 160% year on year. Therefore, the industrial transformation was brought onto a fast track in 2021.

Third, measures providing vital relief to small- and medium-sized enterprises (SMEs) were implemented and enhanced effectiveness. The CPC Central Committee and the State Council have attached great importance to the development of SMEs and regarded facilitating the development of SMEs as a long-term strategy for stabilizing growth and employment. Under the leadership of the State Council's working mechanism on promoting the development of SMEs, the MIIT has been working with relevant departments of the State Council and local governments to strengthen coordination, supervision, and guidance. We have been working to constantly optimize the business environment of SMEs, further protect and stimulate the vitality of market entities, provide more favorable policies and continuous services. We have also introduced policy packages that provide vital relief and benefit to SMEs and established long-term mechanisms that prevent and resolve the problem of defaults on payments to SMEs, which has proved to be effective currently. Policies such as tax and fee cuts and inclusive financing continue to take effect and significantly reduce the burden on enterprises. In the meantime, we strive to promote the rapid development of SMEs towards high growth potential, advanced technology, and a strong market competitive edge. The MIIT worked with relevant government bodies and introduced policies on developing high-quality manufacturers and improving SMEs' competitiveness. Over 40,000 enterprises in China have high growth potential, advanced technology, and a strong market competitive edge. The number of "little giant" enterprises in China amounted to 4,762, and single-product manufacturing specialists reached 848. They have become the benchmark demonstration enterprises in their respective and specialized fields, and a group of innovative enterprises and business startups continue to emerge and grow.

Fourth, the information and telecom industry made new leaps forward. Last year, by further leveraging the enabling role of the new generation of information technology, we continued improving and building new types of infrastructure, and vigorously fostered new forms of business and new applications, thus continuously enhancing our capacity to support the digital transformation of the economy and society. Here we outline the main features. First, the industry developed at an increasingly higher speed. In 2021, the revenue of the telecom business increased by 8% year on year, and that of software and information technology services grew by 17.7% year on year. The construction of "double gigabit" network infrastructure sped up, covering 300 million households with gigabit optical fiber networks. A total of 1.43 million 5G base stations were established and opened, and 512,000 administrative villages across the country got access to broadband. All those are of historic significance. What is also historic is that telecom difficulties in poor areas were addressed, a remarkable achievement even worldwide. Substantial outcomes were made in the innovative supervision of the industry, with major progress in special projects to regulate the internet industry, regulate apps infringing on users' rights and interests, and upgrade internet applications for the aged. The foundation of security was continuously consolidated, with solid progress in the prevention and combat of telecom and internet fraud, the protection of personal information, and the management of data security. At the same time, the whole industry actively participated in and served major national events. We offered sound telecom and cyber security services to the celebrations of the centenary of the founding of the Communist Party of China (CPC) last year and are going all out to ensure those services at the Winter Olympics and Paralympics. All the venues in the three competition zones in Beijing and Zhangjiakou have realized full coverage of 5G, strong support and guarantee for online broadcasting of events and a smart Winter Olympics.

Those are the main features of our work in four aspects last year. In 2022, we face a more challenging, complex, and uncertain external environment. China's industrial economy faces triple pressure from shrinking demand, supply shock, and weakening expectations, and the task of ensuring stable growth remains a challenge. We will thoroughly implement the spirit of General Secretary Xi Jinping's important addresses and the Central Economic Work Conference, continue to follow the general principle of pursuing progress while ensuring stability, and promote the high-quality development of industry and information technology. We will coordinate epidemic prevention and control and economic and social development, balance development and security imperatives, focus on our goal of building China into a manufacturer of quality and building China's strength in cyberspace, and give top priority to stabilizing industrial growth. We will do a good job in anticipatory adjustments, fine-tuning, and cross-cyclical adjustments; strive to enhance the core competitiveness of the manufacturing sector; improve the quality and efficiency of the industrial economy while promoting its stability; and keep the proportion of the manufacturing sector basically stable. We will strengthen and boost the real economy and lay a solid foundation for the economy so as to welcome the convening of the 20th CPC National Congress with outstanding achievements.

That is all I have for now. My colleagues and I are ready to answer your questions. Thank you.

Chen Wenjun:

Thank you, Mr. Tian. The floor is now open to questions. Please indicate the media organization you work for before raising questions.

CCTV:

The year 2021 marks the first year of the 14th Five-year Plan period (2021-2025) and a year of special importance in China's modernization drive. Industry is the leading part of the national economy, and a stable industry helps stabilize the economy. What is your comment on the overall performance of the industrial economy in 2021? Thank you.

Tian Yulong:

Thank you for your question. I mentioned it when briefing on the overall situation just now. In the special year 2021, we strived to overcome adversities brought by sporadic epidemic outbreaks, tighter supply of production factors, and constantly high commodity prices and adopted a slew of policies and measures to stabilize industrial growth in accordance with the decisions and plans of the CPC Central Committee and the State Council. Our efforts ensured the recovery of the industrial economy, and enabled progress in stabilizing and modernizing the industry chain and supply chains as well as even stronger internal driving forces for high-quality development. All those provided strong support for macroeconomic growth.

In general, the performance of the industrial economy last year had the following features:

First, the industrial economy sustained its recovery. It maintained an overall stable development last year, while the growth rate was relatively higher in the former quarters and lower in the latter. In the third quarter in particular, the growth rate declined month by month due to the epidemic, flooding, and the tighter supply of energy. Under the leadership of the CPC Central Committee and the State Council, the MIIT, together with other relevant departments, implemented a series of measures, including helping enterprises out of difficulties, ensuring energy supply, and stabilizing energy prices, which yielded remarkable results. The growth rate in the fourth quarter reversed the downward trend and began to pick up month by month. In 2021, China's industrial added value of industrial enterprises above designated size saw a year-on-year increase of 9.6% and a two-year average increase of 6.1%, higher than the pre-epidemic level in 2019. In particular, the value added to the manufacturing sector saw a year-on-year increase of 9.8% and a two-year average increase of 6.6%. The utilization rate of industrial capacity in 2021 was 77.5%, 3 percentage points higher than the previous year. Business performance improved significantly. In the first 11 months of last year, profits of industrial enterprises above designated size registered a year-on-year increase of 38% and a two-year average increase of 18.9%. Their operating margin reached 6.98%, a relatively high level in recent years. Industrial export maintained rapid growth, with the export delivery value of industrial enterprises above designated size logging a year-on-year increase of 17.7% and a two-year average increase of 8.3%. Export also showed a growth trend. Those altogether testify to a good and overall stable performance of our industrial economy.

Second, key industries have maintained growth. In 2021, 39 out of the 41 industrial categories continued to grow, with 15 industries registering more than double-digit growth. The added value of raw material manufacturing increased by 5% year on year, with a two-year average growth of 4.1%. Profits grew 92% year on year thanks to the raw material price rise, which contributed 60% to the profit growth of the whole industry. The raw material industry saw a sound performance last year. The added value of the equipment manufacturing industry registered a year-on-year growth of 12.9% and a two-year average growth of 9.7%, contributing over 40% to the overall industrial growth. Driven by the stay-at-home economy and overseas market demand, the electronic industry maintained a double-digit growth in its industrial added value and export delivery value. The added value of consumer goods manufacturing maintained an overall stable recovery with a year-on-year growth of 9.8% and a two-year average growth of 4.5%. In particular, driven by the demand for medical supplies to fight against COVID-19, the added value of the pharmaceutical manufacturing industry surged 24.8% year on year.

Third, the industrial structure has been constantly improved. Investment in the manufacturing sector has been adjusted and improved, recording a year-on-year growth of 13.5% in 2021, while that in high-tech manufacturing rose 22.2%. The proportion and structure of investment have also been constantly improved. Driven by investment, the added value of high-tech manufacturing grew rapidly, up 18.2% year on year. New intelligent and upgraded products also saw a rapid increase, so did the output of industrial robots, integrated circuits, and other new products. In particular, the production and sales of new energy vehicles exceeded 3.5 million, 1.6 times greater year on year. These are the highlights of manufacturing. Restructuring and replacing old growth drivers are making steady progress with remarkable effects. The 5G technology and industrial networks accelerated the digital transformation of manufacturing. Breakthroughs made in some key fundamental technologies also shored up the upgrading of manufacturing. The container production doubled, and the industry and supply chains of photovoltaic power, wind power, and ships are internationally competitive. Under the overall plan for carbon peak and carbon neutralization, we have formulated some plans, including implementation programs for the industrial sector and key industries involving non-ferrous metals and building materials. In the first 11 months of last year, the energy consumption per unit of the added value of industrial enterprises above designated size decreased by 5.5% year on year.

Fourth, small and medium-sized enterprises (SMEs) have resumed growth. We issued a series of policies to bail enterprises out, and further stimulate market players. In 2021, the revenue and profit of SMEs above designated size jumped 20.7% and 28.2% year on year, respectively, with two-year average growth of 9.8% and 17.1%, respectively, which are faster than the growth of the same period in 2019. We support SMEs to become more professional and specialized in niche sectors. A group of startups and innovative businesses are emerging. An MIIT survey of 1,185 "little giant" companies — leading SMEs — showed the profit margin for the first 11 months reached 10.9%, which is a good performance on the whole. Nevertheless, SMEs, especially small and micro businesses, are subject to market and epidemic changes and facing difficulties in their operation. We are stepping up efforts to help them.

Generally speaking, the current situation is still uncertain and complex. We are satisfied with the work in 2021 and confident to welcome 2022. We still have many favorable conditions, including fast economic growth, a sound growth momentum on the whole, China's leading role in COVID-19 response, a complete industrial system and sound supporting capacity, and a resilient economy with potential. Besides, with the implementation of both macro and micro policies, I am convinced that the overall development trend of the industry and information technology will not change in 2022, so will the fundamentals sustain China's long-term economic growth. With the implementation of these policies, we are confident of overcoming various difficulties to achieve a stable performance of the industrial economy. Thank you.

CNBC: 

I have two questions. Statistics show that chip and auto production has recovered in recent years. Does this mean that the shortage of chips will be solved soon? What's your outlook for 2022? The second question is about China's "dynamic zero-COVID-19" approach. Some foreign analysts are worried about its damage to China's supply chain. Is the MIIT concerned about the issue? What measures will be adopted to ensure stable production? Thank you.

Luo Junjie:

Thank you. The manufacturing capacity of integrated circuits continued to be strained last year, which led to a knock-on chip shortage through all sectors and significantly impacted the performance of global industries. In particular, the auto industry was hit worst. Many domestic auto producers have cut production or suspended production in the short term. According to our analysis, there are two reasons behind it. On the one hand, with upgrading social intelligence, the demand for chips – the most critical component in smart equipment – continues to grow. On the other hand, as the pandemic spreads globally, some countries are still imposing unjustified sanctions and suppression of enterprises from other countries, which has severely hit the global semiconductor supply chain. These overlapping factors have given rise to the chip shortage. As the market adjustment mechanism gradually plays its role, together with the joint efforts of governments, auto, and chip producers, the chip shortage in the auto sector is easing gradually. But we should also see that the stability of the global supply chain of integrated circuits is still facing severe challenges, and the chip supply will remain strained for a long time to come.

The integrated circuit (IC) industry is highly globalized. China has the world's largest integrated circuit market, and the Chinese government is committed to boosting close global cooperation to build sustainable and stable industrial and supply chains based on the principle of openness and development. Therefore, the MIIT has been keeping a close eye on the automobile chip shortage issue and actively responding to it by taking multiple measures to ensure chip supply and maintain the steady operation of the automobile industry. Next, we will also strengthen communication and cooperation with relevant countries and regions, encourage leading domestic and foreign enterprises to increase investment in a coordinated manner, and enhance the supply capacity of the whole chip industrial chain. In addition, we need to effectively implement the "Several Policies for Promoting High-quality Development of the Integrated Circuit Industry and the Software Industry in the New Era" No. 8 document for 2020 issued by the State Council and related supporting policies. By doing so with full efforts, we aim to promote a free flow of various resources, create a fair and just market environment, achieve high-quality development of the IC industry, and help build a global industrial system featuring co-existence and win-win cooperation. Thank you. 

Tian Yulong:  

Let me answer your question about the impact of the dynamic zero-COVID-19 approach. I noted that some foreign media wrote articles on the policy's negative influence on the industrial economy. As we all know, China has been following the anti-pandemic principle of preventing inbound cases and a domestic resurgence, which has so far generated remarkable results. In accordance with the requirements of the CPC Central Committee and the State Council, China has taken the lead to bring the COVID-19 under control by putting people and their lives first. It is fair to say that China has led the world in both economic growth and pandemic prevention and control.  

As I said just now, China's economic growth, especially in the industrial sector, shows that the country's anti-pandemic policy is beneficial to the industrial and supply chains. It is by adopting the right pandemic prevention strategies that China has led the world to resume work and production and ensure the stability and security of the industrial and supply chains. As a result, China's economic development, export, and some other sectors are all growing smoothly on the whole. In my opinion, the stability of the industrial and supply chains can be attributed to our effective anti-pandemic endeavors. Of course, you may be concerned about the current multiple sporadic outbreaks in China. Some cities involved have taken control measures, which may exert temporary and small-scale influences on the industrial and supply chains of some regions. However, the short-term effects in a limited scope did not have a big impact on the macro-industrial chain. In particular, with the increasing precision of China's pandemic prevention and control policies, there will not be a big impact on the industrial and supply chains, especially on industrial enterprises, and the stability and security of the chains can still be guaranteed. Certainly, the pandemic is still spreading internationally and has yet to be effectively controlled, making the external environment of the industrial and supply chains uncertain, which will impact China's industrial and supply chains to some extent.  

I believe that by adhering to the anti-pandemic policies and taking more precise and effective measures to ensure the safety of supply and industrial chains, China's industrial and supply chains will become more resilient. We will also make greater efforts to keep the global supply chains smooth, which I deem essential to the stable operation of our industries, the production-marketing coordination, the unimpeded domestic and foreign trade, and the industrial economy's steady development this year. Coordinating pandemic prevention and control with economic and social development, especially industrial economic growth, remains a priority this year.

CNR:

According to the recently held National Work Conference on Industry and Information Technology, the industry and information technology system have successfully fulfilled the main targets and tasks for the year, realizing a good start to the 14th Five-Year Plan (2021-2025) period. Could you give us more details on the development of the information and communications industry, including 5G and the industrial internet? Thank you.

Tian Yulong:  

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

Zhao Zhiguo:

Thank you for your question. Last year, the information and communications industry deepened efforts to implement the strategy of building China into a strong country in manufacturing and cyberspace and made new strides in accelerating the integration of information and communications technologies with diverse economic and social sectors. The annual revenue of the telecom business reached 1.47 trillion yuan with a year-on-year growth of 8%, up 4.4 percentage points year on year. The total volume of the telecom business stood at 1.7 trillion yuan, up 27.8% year on year. The measures taken are mainly as follows:

First, we have strengthened planning for the 14th Five-Year Plan period and sped up improvements to the policy planning system. We issued a development plan for the information and communications industry during the 14th Five-Year Plan period and launched five three-year (2021-2023) action plans of the coordinated development of "dual gigabit" networks, the application of 5G, the industrial internet innovation and development, the new data center development, and the IPv6 traffic increase. The plans have together constituted the policy system for the development of the information and communications industry, giving full play to the guiding role of the policies.  

Second, the construction of new types of infrastructure has achieved remarkable results, and the support capacity for digital transformation has been further enhanced. The number of new 5G base stations in the whole year reached 654,000 while the number of 5G mobile terminal connections reached 518 million. The gigabit optical networks covered 300 million households, and the first batch of 29 "gigabit cities" were built, which promoted the development of China's dual-gigabit network capability, users' quality and innovative applications, achieving good results. The industrial internet infrastructure, featuring the coordinated development of "cloud computing, networks, edge computing and terminals," has basically taken shape. "5G+industrial internet" has shaped 20 typical application scenarios, such as remote equipment control and machine-vision quality inspection, across 10 key industries, such as mining, steel and electric power. Remarkable achievements were made in empowering various industries and businesses to transform and upgrade.

Third, solid steps have been taken towards industry oversight, and supervision efficiency has continued to improve. The modernization of industry supervision has also improved. A new regulatory system based on credit is in its nascent stages, and the coordinated national regulatory pattern is being rapidly constructed. Platform governance achieved important breakthroughs. We organized special rectification actions for the internet industry as well as actions to improve user experience of information and communications services. As a result, the compliance of business operations, the openness of the industry ecology and user satisfaction have been significantly improved. We have further promoted in-depth special rectification campaigns on apps' infringements of user rights and interests. We have built a national app testing platform, with the ability to test 180,000 apps every month and carry out technical testing, which has basically solved the problems of "not being able to close pop-ups" and "unexpected redirects of pop-ups."

Fourth, the capability to safeguard cyber security has been continuously improved, and defense measures have been consolidated. We have promulgated the "Regulation on the Management of Security Loopholes of Network Products," established a national loophole management system, built a 5G application security innovation demonstration center, and improved 5G application security safeguard capabilities. We have fully implemented real-name registration management for the internet of vehicles (IoV), and the security management system of the IoV has basically been established. We further implemented the classified network security management of industrial internet enterprises, optimized the policy environment for the development of the cyber security industry, deepened the governance of the basic level of the industry, and made significant breakthroughs in preventing and controlling telecommunications and online fraud.

Fifth, deeply and practically serving people's livelihood, and making digital life more convenient. Universal telecommunications services have been steadily advanced, and we made the historic realization of "broadband access to every village" for each administrative village across the country, helping more people get on the "digital train." For special groups such as rural households alleviated from poverty, we have carried out targeted fee reduction and other related work, saving a total of 8 billion yuan for users, which has greatly reduced the cost of network usage. The first batch of 217 websites and apps closely related to elder communities have undergone age-appropriate transformations and passed the evaluation, providing more comprehensive, considerate and direct facilitation services for the elderly. 5G technology has been used to empower the "smart Winter Olympics" and create smart applications such as smart viewing, cloud broadcasting and smart venues, further enriching the spectator experience, as well as improving event services and venue operations.

In the next step, the MIIT will resolutely implement the guiding principles of the Central Economic Work Conference, focus on development as the top priority and promote steady progress, take effective measures to ensure the information and communications industry maintain stable and relatively rapid growth, continue to strengthen 5G construction and innovative applications, actively promote the upgrading of the industrial internet, accelerate the construction of an agile, accurate and efficient industry supervision system, steadily promote the innovative development of the cyber and data security industry, and ultimately promote the high-quality development of the information and communications industry. Thank you.

Hong Kong Economic Herald:

In recent years, the rapid development of the digital economy has attracted widespread attention and has become a new engine for the 14th Five-Year Plan. What major achievements did the MIIT make in promoting the development of the digital economy last year? How do you view digital economy trends in the next stage? And how can you make the digital economy operate stably and with a far reach? Thank you.

Tian Yulong:

Thank you for your questions. Let me answer them. The CPC Central Committee and the State Council attach great importance to the digital economy. General Secretary Xi Jinping has given important instructions about it on many occasions. It's fair to say that the development of the digital economy entered a "fast lane" last year. There are several features:

First, since the development of digital economy is also an integration of multiple economic fields, it primarily focuses on the innovation of key technologies. Last year, we made a series of breakthroughs in key core technology areas. Our innovation and development of big data, cloud computing and blockchain are currently at the forefront of the world. Our advantages in this regard are obvious. 5G mobile communications technology, equipment and applications are leading the world. Smartphones have also entered the world's advanced ranks. The foundation of the digital economy, in terms of integrated circuits and software, has also achieved milestones. Therefore, in terms of technological breakthroughs, the digital economy achieved gratifying results last year.

Second, in terms of overcoming difficulties in the digital industry, we have continued to strengthen the industrial economy. There are several characteristics. After the construction of new types of information infrastructure gathered speed, the comprehensive strength of our information infrastructure has reached a new level. As I mentioned just now, we have built the world's largest optical fiber network and 5G network, which lay an important foundation for realizing the digital economy. We have launched 1.425 million 5G base stations. Pushing forward the integration of our cyber industry applications has brought the development of the digital economy into a "fast lane." The resilience of the development of the digital economy is also very remarkable. Last year, business revenue from the software information technology service industry increased by 17.7%, ahead of the industry average. The development of the home economy, online economy and information development has raced through a "fast lane" due to the COVID-19 pandemic, boosting the growth of the industry and the demand.

Third, the digitalization of manufacturing picked up speed. The intelligent manufacturing equipment industry developed rapidly. Last year, the output value of industrial robot manufacturing enterprises above the designated size surged 30.8% year on year; and that of 3D printing equipment enterprises registered a year-on-year increase of 27.7%. In particular, more than 150 industrial internet platforms with national influence were established and over 2,000 "5G+industrial internet" projects are under construction. Digital technology is crucial for SMEs, especially those with high growth potential, advanced technology and a competitive edge in the market. Most of them are innovative enterprises with advantages as latecomers to the digital economy and they develop relatively fast. We believe these SMEs will perform exceptionally well in the digital economy.

Fourth, the ecology of the digital economy improved. We deepened reforms to streamline administration and delegate power, improve regulation and upgrade services. We also simplified approval procedures and optimized relevant processes. These measures supported the development of digital economy enterprises by reducing government-imposed transaction costs. In collaboration with other departments and local authorities, we built a number of digital industrial clusters which leveraged the advantages of different regions in industry, technology and talent. As you might know from news reports, local authorities across the country hosted many exhibitions, conferences and forums, centered around the digital economy last year, while working to facilitate the flow of digital economy factors and upgrade industrial clusters. In addition, we engaged more actively with international efforts through bilateral and multilateral mechanisms such as G20, participated in the formulation of digital rules and cooperated in data and cyber security, and helped more Chinese digital enterprises go global. All these have contributed to the building of a global cyber-community with a shared future. Therefore, the overall development trends of the digital economy are encouraging. Next, we will continue to follow the guidance of the plan to facilitate the development of the digital economy in the 14th Five-Year Plan period (2021-2025) issued by the State Council. We will focus on accelerating the integration of digital and real economies, promoting the development of digital information infrastructure and improving the digital economy governance system. We will take coordinated measures to promote the development of digital industries and the digital transformation of traditional industries, empowering traditional industries with next-generation information technology and fostering new industries, new businesses and new models. Under the guidance of the plan, we will mobilize forces and resources from all quarters to ensure the rapid and stable development of the digital economy. This is our goal and I believe we will achieve it. Thanks.

Yicai:

Sporadic cases have been reported in several regions, and the base number for the first quarter of last year was relatively high. In this context, what do you think of the industrial growth rate in the first quarter of this year, and what measures will be taken to boost the industrial economy? Thanks.

Tian Yulong:

That's a good question. Mr. Luo Junjie will answer it.

Luo Junjie:

Thanks. Mr. Tian has already mentioned this issue. Facing the downward pressure on the industrial economy, we have been formulating new development policies in collaboration with relevant departments since the second half of last year. In the fourth quarter, the MIIT and the National Development and Reform Commission jointly issued an implementation plan for invigorating the industrial economy and promoting high-quality industrial development. The plan, which includes 16 policy measures to stabilize industrial growth from four aspects, effectively boosted the industrial economy in the fourth quarter of last year. Currently, the industrial economy's recovery is stuttering and we have been facing significant downward pressure in the first quarter of this year due to a range of factors. Globally, there are many uncertainties about the pandemic and the world's economic growth and trade are sluggish. Domestic factors include concerns about supply constraints, weak consumption and investment demand, difficulties facing SMEs, sporadic COVID-19 outbreaks, the base effect, etc. Well aware of the situation, we made plans early and took proactive measures. At the end of last year, we made arrangements to ensure a stable start for industrial performance during the first quarter of this year. Local industry and information technology authorities were required to help enterprises organize operations during the New Year's Day and Spring Festival holidays, strengthen the supply of production factors such as raw materials and labor, and resume work and production after the Spring Festival holiday. In the next step, we will faithfully implement the guiding principles of the Central Economic Work Conference, prioritize stability and pursue progress while ensuring stability. We will continue to strictly observe virus prevention and control protocols and implement existing policies and measures. Meanwhile, we will respond to new developments and roll out more effective measures in collaboration with other departments in terms of finance and taxation, ensuring supply and price stability and supporting the development of SMEs. We will carry out anticipatory, fine-tuning, and cross-cycle adjustments. We will take a series of measures and spare no effort to ensure steady industrial growth in the first quarter, which will act as a "ballast" for the overall economic development. Specifically, we will do the following:

First, we will work hard to boost investment in the manufacturing sector. We will give play to investment's key role in stabilizing industrial growth and accelerate the launch of major projects listed in the country's 14th Five-Year Plan, as well as the corresponding five-year plan in the field of industry and information technology. We will establish a mobilization and service mechanism for major programs in collaboration with relevant departments and local governments. At the same time, we will strengthen the cooperation between industry and finance, encourage and support enterprises to increase investments and guide financial institutions to bolster their support for the digitalization and green transformation of enterprises.

Second, we will actively guide and expand consumption demand. We will seize opportunities from the shopping seasons associated with traditional festivals, such as Spring Festival and Lantern Festival, and unleash the potential of the huge domestic market and tap into residents' consumption potential. We will further implement the strategy of increasing the variety and quality of products and nurturing domestic brands, promote the upgrade of information consumption, and boost the development of the intelligent connected vehicle (ICV) industry, the smart health and senior care industry, as well as the ice and snow equipment industry. We will expand the consumption of new energy vehicles and encourage the use of green smart home appliances and green building materials in the countryside where conditions permit. 

Third, we will work to ensure the supply and coordination of energy factors. We will precisely unclog bottlenecks within industrial chains and supply chains, address chip shortage issues, container shortages and labor shortages, accelerate efforts to ensure and coordinate factors of energy, logistics and labor force, prioritize the stable operation of key industrial chains and supply chains, with an emphasis on addressing the chip shortage in the auto industry and maintaining the smooth operation of key component supply chains.

Fourth, we will boost the role of the new impetus as a growth driver. We will stimulate new dynamics of economic growth through upgrading traditional industries with digital and smart technologies and create big, strong emerging industries, improve the multi-level system of industrial internet platforms, deepen the integration and application of 5G and gigabit fiber-optic networks in the manufacturing, mines, energy, agriculture and transportation sectors to contribute to the digital transformation of those industries. We will actively expand applications for virtual reality and smart health and elderly care products, as well as foster emerging industries such as big data, artificial intelligence and Internet of Vehicles. Thank you. 

People's Post & Telecommunications News:

What results have China achieved in 5G developments and applications and what are the shortcomings? What are the MIIT's deployment and plans for future 5G development and what are the priorities? Thank you. 

Zhao Zhiguo:

Thank you. Over the past year, the MIIT has implemented decisions from the CPC Central Committee and the State Council, and mobilized forces from all industries to promote innovative 5G development all while making notable progress. 

First, we have strengthened policy guidance. The MIIT, together with nine other departments, issued a three-year action plan aimed at coordinating 5G integration and application, and fostering new drivers of economic and social development. We worked with the National Health Commission to carry out 5G plus medical health pilot programs that expand 5G applications in the medical health sector and build a model of sound development of smart medical care. We also worked with the Ministry of Education to carry out 5G plus smart education pilot programs to promote the high-quality development of 5G-enabled education. 

Second, we have achieved steady progress in 5G development. China has built the world's largest 5G network with the most advanced technologies. By the end of last year, the country had built more than 1.4 million 5G base stations, of which more than 800,000 are jointly built and shared. The 5G network covers all prefecture-level cities, urban areas of more than 98% counties and 80% townships. The breadth and width of 5G coverage continued to expand during the past year. China's 5G mobile phone shipments stood at 266 million units last year, up 63.5% year on year, showing a steady growth trend.

Third, the application innovation has been improved in both quantity and quality. We organized the fourth "Bloom Cup" 5G Application Competition, which collected more than 12,000 projects from almost 7,000 participants. The number and quality of the projects reached a new high. The application of 5G+4K/8K ultra HD video and 5G+AR/VR was applied to many scenarios last year, such as the art performance marking the 100th anniversary of the CPC's founding, live events, and housing and shopping services, bringing a new experience to consumers. 5G applications in the fields of industry, culture and tourism, energy, and transportation have also continued to expand. Take the 5G plus industrial internet as an example. Typical scenarios, including remote equipment control, machine vision inspection and production efficiency control, have been applied in-depth in key areas, such as mining, ports, iron and steel, and electricity and petrochemical sectors, which has helped enterprises improve quality, reduce costs, improve efficiency and realize green and safe development. Notable progress has also been made in this regard. 

Of course, we should also note that there are still challenges in 5G development, including the bottleneck in technology industries, immature business models and the ecological environment yet to be further optimized, which needs coordinated forces from all sectors to promote the scalable development of 5G. The year 2022 is crucial for the scalable development of 5G application, and we will continue to implement the policy decisions and plans of the CPC Central Committee and the State Council, boost the coverage of the 5G network, and advance in-depth integration of 5G and vertical industries. Our major efforts are as follows:

First, we will further consolidate the 5G industry base. We will encourage industrial sectors to make key 5G technology breakthroughs, support enterprises in actively participating in the formulation of a series of international 5G standards, encourage them to develop various 5G chips and modules in a timely manner to meet diversified demands of the industrial application, boost the growth of new end-use products, such as 5G smart mobile phones, wearable devices, virtual reality (VR) and augmented reality (AR), to enrich carriers of 5G technology applications. 

Second, we will make steady progress in 5G network development. We will take a moderately proactive approach in advancing 5G network development, further implement the principle of joint development and sharing, continue to expand 5G coverage in counties and towns, improve deep coverage level of the 5G network in crowded areas, such as high-speed trains, transportation junctions, and shopping malls, as well as key sectors of industries and medical care. 

Third, we will promote large-scale utilization of 5G. We will strive to do a good job in implementing the "Sailing" action plan for 5G application , hold the fifth "Blossom Cup" 5G application competition, and carry out related work on pilot "5G plus medical care" and "5G plus smart education" projects. We will also promote the application of 5G technology in broadcasting, travel, and other scenarios to help deliver a smart Winter Olympics. We will upgrade the "5G+industrial internet" application and tap into a batch of typical application scenarios at production lines and factories, connecting 5G technology throughout the whole process of engineering projects. We will implement a plan to improve 5G application for individuals and work to launch new types of terminals and apps in a bid to increase people's sense of accomplishment and happiness. Thanks.

Thecover.cn:

What achievements has the MIIT made in its special campaign on app governance over the past year? Will these efforts be strengthened in 2022? And what is the focus of this work? Thanks. 

Tian Yulong:

Mr. Zhao will answer your questions. 

Zhao Zhiguo:

Thank you for your questions. The mobile internet has grown rapidly in recent years. Apps are closely related to the production and life of the public. Against this backdrop, the protection of personal information has become a hot issue that hundreds of millions of users are concerned about. The MIIT takes a people-centered approach and attaches great importance to the protection of users' rights and interests. Focusing on such problems as rule-breaking access of phone users' permission and the collection of users' information beyond the normal scope, we have carried out special campaigns for app management. In 2021, we strengthened coordination with other departments, and took comprehensive measures to address a series of prominent problems, and made remarkable progress. Our work can be summarized as follows:

First, we worked to improve laws, regulations and standards to better govern in accordance with the law. App governance must prioritize laws and regulations. Last year, the Personal Information Protection Law, Data Security Law, and other laws and regulations were issued. To further specify requirements, we drafted the Provisions on the Protection and Management of Personal Information on Mobile Apps, for which we have solicited opinions and suggestions from the public. In addition, we promoted the formulation of industry standards such as ones for evaluating the minimum necessity principle in the collection and use of personal information by apps. We can say that these policies and standards have provided strong support for app governance. 

Second, we targeted hot and difficult issues and carried out special campaigns. The issues considered most urgent, difficult, worrisome and expected by users are our biggest concern and focus. We carried out campaigns on pop-ups, which appear as an app opens and are difficult to close or mislead users to another page, and effectively urged major internet companies to solve this strongly-complained problem. We conducted special assessments on apps in the travel and accommodation sectors during major festivals and holidays. Last year, we carried out 12 batches of technical assessment for apps – nearly once a month. A total of 1,549 apps were publicly criticized for violating regulations, and 514 apps were taken down for failing to correct their violations. To sum up, we continued to create a cleaner app environment. 

Third, we strengthened the application of technologies in app governance. There are now millions of apps in the app stores, and we must further strengthen our technological examination abilities. Last year, with artificial intelligence, big data, and other new technologies, the capability of automatic examination of the national platform for technological examination of apps has improved greatly. 2.08 million apps were examined, which basically covered all apps of major internet companies in China. 

Fourth, we guided businesses to strengthen self-discipline and addressed problems at the source. Businesses should take primary responsibility and strengthen their self-discipline, which is of key importance to protect users' rights and interests and push ahead the healthy development of the industry. Last year, we organized related industry associations to call meetings with internet companies on the regulation of personal information protection in apps and provided 16 trainings for nearly a thousand companies to raise their red-line awareness, constantly improve internal governance, and operate in accordance with laws and regulations, all aimed to solve the problem at the source. 

Fifth, we improved user experience of services and pursued innovation in governance. Whether our work is good or not ultimately depends on users' feelings. Last November, focusing on major issues affecting user experience, we launched a campaign to improve user experience of information and communications services. We call it the "524" campaign. We urged companies to make a "dual list" for the protection of personal information, improve privacy policies and the management of accessing of users' permission, and optimize customer services with an aim to improve both services and user experience in an interactive manner.

In 2022, we will focus on following major aspects: 

First, we will continue to pursue comprehensive measures and improve regulation throughout the chain. We will focus on the supervision of those taking major responsibilities, covering all app stores, third-party software development kits (SDK), terminal companies, and major internet companies, among others, to create a safer consumption environment in the information and communications sector. 

Second, we will deepen the "524" campaign to improve service and steadily promote related companies to implement the tasks and requirements of the campaign. We will conduct reviews on a timely basis to better consolidate our achievements and improve users' sense of accomplishment. 

Third, we will push ahead joint governance and build a long-term mechanism. We will strengthen coordination with relevant departments to form regulatory synergy and form a comprehensive system featuring government regulation, self-discipline of companies, media supervision, and participation from social organizations and users, thus creating a safer and cleaner app application environment. Thanks. 

China Electronics News:

SMEs are the main force driving national social-economic development, and the CPC Central Committee and the State Council have paid much attention to them by releasing a slew of supportive measures that help them overcome difficulties. How is the current growth of these enterprises? What measures will the MIIT take to further promote SMEs' development? 

Tian Yulong:

Thank you for your questions. The development of SMEs remains a public concern, and I have elaborated on them, however, I will add some more.

As I mentioned just now, the CPC Central Committee and the State Council have attached much attention to SMEs – the mainstay of China's social-economic development – and helped them overcome difficulties while stimulating their growth. This was our main task last year. Under the guidance of the State Council's leading group on the development of SMEs, the MIIT, in coordination with other departments and local authorities, has yielded notable results. Focusing on policy framework, services system and the development environment, we prioritized the two areas of financing and protecting SMEs' rights and interests, striving to enhance their capacity. Moreover, we adopted comprehensive policies including cutting taxes and fees, providing more financial support and better services; fostering and empowering high-quality SMEs to promote their steady and healthy development.

According to current statistical data, revenues and total profits of industrial SMEs above designated size rose 20.7% and 28.2% respectively, with average two-year growth of 9.8% and 17.1% respectively. Therefore, generally, it demonstrates a steady and healthy momentum. Big data based on monitoring small and micro businesses' power consumption also showed that from January to November of last year, the power consumption of these firms increased 9.6% year-on-year, and 49.4% of these firms registered a higher power consumption compared to the same period of the previous year, reflecting relatively high productivity. Generally speaking, the SMEs grew well, in spite of some difficulties. The micro and small businesses, in particular, are still facing problems concerning the external industrial chain, as well as pandemic prevention and control, and are in need of improvement. 

Next, we will remain focused on the development of SMEs.

First, we will ensure stability and boost the steady and healthy development of SMEs. We will draft more targeted policies and regulations, and continue carrying out the established policies and measures to help them overcome difficulties.

Second, we will promote the high-quality development of SMEs, particularly specialized, refined, characteristic and innovative SMEs. We will improve their innovative capacity and specialized level, as well as their ability to address difficulties so as to achieve sustainable development.

Third, we will strengthen services. The government should coordinate with other sectors and local authorities to implement more supportive policies and establish more service systems. Continued efforts should be made to address issues regarding offering rewards or subsidies to qualified financing guarantee agencies, promoting the targeted docking of enterprises and financial institutions, expanding financing channels, as well as mitigating difficulties faced by the SMEs in accessing affordable financing, so as to ensure the measures are targeted and effective.

Fourth, we will further improve the development environment for SMEs and take effective measures to protect their lawful rights and interests. We have issued guideline on the development of SMEs during the 14th Five-Year Plan period (2021-2025), and will continue to improve our policies by making further assessments and supervising the business environment. We will fully implement the Regulation on Ensuring Payments to Small and Medium-Sized Enterprises to protect their lawful rights and interests. We also call on people from all walks of life to protect SMEs' lawful rights and interests and further improve the long-term mechanism for preventing and resolving payment arrears to SMEs, continue taking special actions to clear arrears owed to SMEs, and ensure the actual implementation of these regulations, policies and measures to benefit the SMEs and help them grow steadily and rapidly. Thank you.

ThePaper.cn:

The Central Economic Work Conference emphasized that it is necessary to enhance the core competitiveness of the manufacturing industry. During a State Council executive meeting, the shifts from medium- and low-end manufacturing to medium- and high-end manufacturing were also underlined. What progress has the MIIT made in enhancing the core competitiveness of the manufacturing industry? Are there further plans? Thank you. 

Tian Yulong:

Thank you for your concern and support to MIIT. Improving the core competitiveness of the manufacturing industry is a requirement put forward during this year's Central Economic Work Conference. This is also a primary task for us in this year and beyond. While ensuring the stability and security of the supply chain and industrial chain in the early stage, we will further enhance the core competitiveness of the manufacturing industry in the next step.

The stability and security of the industrial chain and supply chain are vital to the core competitiveness of the manufacturing industry. Overall, the industrial economy restored growth in the past year. In the first three quarters, the manufacturing value-added in GDP increased to 27.4%. The proportion of the manufacturing industry remained stable. The efficiency of enterprises has also improved significantly. In the first 11 months of last year, profits from industrial enterprises above the designated size increased by 38% year-on-year and 41.3% compared with the same period in 2019. The overall development of the manufacturing industry is relatively fast, and the efficiency improvement is also reasonably noticeable. This is mainly because the resilience of the industrial chain and supply chain has been secured, significantly improving our entire manufacturing industry, especially in some primary and critical areas. The overall capacity has been improved. In particular, the enhancement is reflected in equipment manufacturing, including containers, photovoltaics, wind power, energy, and electricity. International competitiveness has also been enhanced. These are the specific reflections of the improvement of core competitiveness. Last year, the high-tech and equipment manufacturing industries' added value increased by 18.2% and 12.9% year-on-year, respectively. Considering the negative impact of the COVID-19, this growth rate is awe-inspiring. 

The improvement of the core competitiveness of the manufacturing industry is our main task. Therefore, I summarize the target using the term "3+3." This means three foundations and three focuses. To enhance our core competitiveness, we must lay solid foundations in the following three aspects:

First, we should improve the foundation of industrial technologies. The development of the manufacturing industry hinges on core and key technologies. In this regard, we will make great efforts to launch special projects on developing the key technologies, the lack of which will restrict the improvement of the core competitiveness of the manufacturing industry. Furthermore, we will establish several manufacturing innovation centers. In particular, we will jointly build several centers with local governments to promote the formation of industrial clusters and industrial chain aggregation and enable the coordinated development of upstream and downstream of the manufacturing industry.

Second, we will enhance the technological innovation of the industry. Industrial foundations underpin technology. Six foundations, including essential components, parts, materials, software, basic techniques and industrial technologies, are crucial to improving the manufacturing industry's core competitiveness. We will further accelerate the implementation of projects aiming to reinforce the industrial foundation to enhance the core competitiveness of the industry further.

Third, we will further increase the resilience of the industrial chain and supply chain. We will settle problems arising in the industrial chain and supply chain, increase the advantages, and strengthen weak links. We will upgrade the industry, improve quality, and increase efficiency. We will increase efforts to boost investment in the manufacturing industry comprehensively improve the completeness, resilience and standard of the industrial chain, and accelerate technological upgrades and equipment renewal. 

The following will be three focuses. The first is to underline the development of enterprises with high growth potential, advanced technology, and a strong market competitive edge. Therefore, we will launch a series of policies such as fee and tax reduction to promote the development of enterprises with high growth potential, advanced technology, and strong market competitive edge, making them players of improving core competitiveness of the manufacturing industry and a significant driving force of the industrial chain and supply chain.

The second is to improve intelligent manufacturing significantly. With digital and information technologies, we will accelerate the digital transformation and upgrading of the manufacturing industry to maintain the leading position of the equipment manufacturing industry and high-tech manufacturing industry, particularly in manufacturing some high-level components and applications of "5G+industrial internet". To improve the capability, intelligent manufacturing should be our priority for investing our efforts and making breakthroughs.

The third is implementing carbon peaking actions in the industrial sector to achieve green manufacturing. Efforts should be made to accelerate the peaking of carbon emissions in key industries and key areas. We will vigorously develop green manufacturing, leading the upgrades and transformation of the technologies of the manufacturing industry. We will carry out green and low-carbon technology application and product development and implement industrial energy efficiency and water efficiency improvement plans. Low-carbon and green manufacturing is an important driving force for the transformation and upgrading of the manufacturing industry, as well as for its innovation and development. We must also curb the reckless development of high-energy intensity and highly pollutive projects.

With these six measures, the core competitiveness of the manufacturing industry will be significantly improved. Therefore, these will be our focuses in 2022 and the 14th Five-Year Plan (2021-25) period. That's all for my answer to this question. Thank you.

Chen Wenjun:

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

Translated and edited by Zhang Jiaqi, Liu Sitong, Duan Yaying, Liu Qiang, Xu Xiaoxuan, Wang Yiming, Zhang Rui, Chen Xia, Zhang Liying, Wang Yanfang, Yang Xi, Li Huiru, Zhang Tingting, Huang Shan, Wang Qian, Zhu Bochen, Yuan Fang, Cui Can, Jay Birbeck, Drew Pittock and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Liu Guoqiang, deputy governor of the People's Bank of China (PBC)

Sun Guofeng, director general of the Monetary Policy Department at the PBC

Zou Lan, director general of the Financial Market Department at the PBC

Ruan Jianhong, director general of the Statistics and Analysis Department at the PBC

Chairperson:

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

Date: 

Jan. 18, 2022

Xing Huina:

Friends from the media, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Liu Guoqiang, deputy governor of the People's Bank of China (PBC), to brief you on China's financial statistics in 2021 and answer your questions. We are also joined by Mr. Sun Guofeng, director general of the Monetary Policy Department at the PBC; Mr. Zou Lan, director general of the Financial Market Department at the PBC; and Ms. Ruan Jianhong, director general of the Statistics and Analysis Department at the PBC.

Next, let's give the floor to Mr. Liu for a brief introduction.

Liu Guoqiang:

Friends from the media, good afternoon. It is a pleasure for me to attend this press conference. I will first make a brief opening introduction on the financial work in the past year and our plans for the next step.

Since the 18th National Congress of the Communist Party of China (CPC), guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the PBC has implemented the decisions and plans of the CPC Central Committee and the State Council, followed the overall arrangement of the Financial Stability and Development Committee under the State Council, remained committed to the general principle of pursuing progress while ensuring stability, and implemented a prudent monetary policy, which have contributed to China's decisive victory in building a moderately prosperous society in all respects. In recent years in particular, monetary policy has continuously helped improve the quality and efficiency of serving the real economy and promoted China to lead globally in economic development.

In 2021, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the PBC resolutely implemented the decisions of the CPC Central Committee and the State Council and enhanced cross-cycle adjustments in light of China's economic conditions. In the first half of the year, there were many positive factors in the operation of the domestic economy. The PBC maintained reasonable and ample liquidity, made good use of relending and two direct tools, that is, the inclusive loan repayment extension support tool and inclusive credit loans to micro and small businesses (MSBs), optimized the supervision of deposit interest rates, and raised the reserve requirement ratio (RRR) for foreign currency deposits by 2 percentage points. While guiding credit growth back to normal, efforts have also been made to optimize the credit structure and reduce financing costs. In the second half of last year, domestic economic development faced triple pressures of shrinking demand, supply shocks and weakening expectations. The PBC coordinated cross-year policies to give full play to the dual functions of monetary policy tools in terms of volume and structure. In July, the RRR was cut by 0.5 percentage point across the board, releasing 1 trillion yuan in long-term liquidity, helping to bolster the real economy and paving the way for a sustained and stable economic recovery in the second half of the year. In August, a symposium analyzing monetary and credit conditions was held to guide financial institutions to enhance the stability of total credit growth. In September, the PBC raised the quota of special central bank lending by 300 billion yuan to support locally incorporated banks to increase loans to MSBs and self-employed businesses. In November, carbon emission reduction support instruments and a special relending facility worth 200 billion yuan was launched to increase the overall energy supply capacity and promote the clean and efficient use of coal. In December, we cut the RRR by another 0.5 percentage point, releasing about 1.2 trillion yuan in long-term funds. The two RRR cuts in the middle and at the end of the year released a total of 2.2 trillion yuan in long-term funds; symposiums analyzing monetary and credit conditions of financial institutions were held to guide financial institutions to make cross-cycle credit arrangements for the end of the year and the beginning of next year; the PBC also lowered the interest rate of the relending program for the agricultural sector and small businesses by 0.25 percentage point and the one-year loan prime rate (LPR) was lowered by 0.05 percentage point, which helped the comprehensive financing costs of businesses remain stable and fall moderately; the PBC converted two direct tools into market-based policy tools to support micro and small business and support financing of micro, small and medium-sized enterprises (MSMEs); the PBC raised the RRR for foreign currency deposits of financial institutions by 2 percentage points and maintained the basic stability of the yuan exchange rate at a reasonable and balanced level. In the past year, we had a busy schedule but remained organized. Every month, we made arrangements with the clear purposes of promoting steady growth while taking into account structural optimization, in particular, in the second half of the year. 

In general, the 2021 monetary policy was flexible, accurate, proper and moderate. It was more forward-looking, stable, targeted, effective and self- directed. China's major financial indicators maintained strong growth on top of the high base of 2020. The financial system operated steadily and the financial support for the real economy was solid. In 2021, new yuan loans reached 19.95 trillion yuan, a year-on-year increase of 315 billion yuan. By the end of 2021, the M2 and aggregate financing increased by 9% and 10.3% year-on-year, respectively, basically matching the nominal economic growth rate. On the two-year average, the M2 and aggregate financing grew by 9.5% and 11.8%, respectively, which basically matched and were slightly higher than the average nominal economic growth rates in 2020 and 2021. By the end of 2021, the macro leverage ratio was 272.5%, down 7.7 percentage points from the end of the previous year, and remained basically stable. The interest rates for corporate loans in 2021 stood at 4.61%, a decrease of 0.1 percentage point from 2020 and a decrease of 0.69 percentage point from 2019, which was the lowest level since reform and opening up began. By the end of 2021, the balance of medium and long-term loans to the manufacturing sector increased by 31.8% year-on-year, 20.2 percentage points higher than the growth rate of all loans. By the end of 2021, the balance of inclusive loans to micro and small business increased by 27.3% year-on-year, benefiting more than 44 million MSBs. The weighted average interest rate of newly issued inclusive loans to MSBs in November was 4.98%, 0.1 percentage point lower than that of December 2020. 

In 2022, the PBC will implement the spirit of the Central Economic Work Conference, prioritize stability, and pursue progress while ensuring stability. We will maintain a prudent monetary policy that is flexible and appropriate, step up cross-cycle adjustment, and give full play to the dual functions of monetary policy instruments both in terms of volume and structure. We will be more proactive and enterprising, enhance our policy predictability and guide financial institutions to increase support for the real economy — especially for small and micro businesses, scientific and technological innovation, and green development, so as to ensure stable operation of the macro economy, as well as foster an appropriate monetary and financial environment for high-quality economic development

Specifically, the PBC's work will focus on the following aspects:

First, maintaining stable credit growth. We will use multiple monetary policy tools to maintain liquidity at a reasonable and ample level, ensure stable credit growth, and guide financial institutions to increase the credit supply so as to ensure the money supply and social financing expansion will basically match the nominal economic growth rate.

Second, steadily improving the credit structure. We will broaden the use of structural monetary policy instruments, implement market-based policy tools to support small and micro businesses, and make good use of the supporting tools for carbon reduction and special reloans for the clean and efficient use of coal. Financial institutions will be guided to increase the credit supply to areas where credit growth is slow and improve the credit structure. Targeted measures will be adopted to increase credit support for key areas and weak links.

Third, steadily reducing overall financing costs for enterprises. We will improve the market-based interest rate mechanism and transmission mechanism, give play to the reform of the LPR mechanism, and stabilize the costs of bank debt, so as to steadily reduce enterprises' overall financing costs and encourage the financial system to transfer profits to the real economy.

Fourth, keeping the yuan exchange rate generally stable at an appropriate and balanced level. We should let market supply and demand play a decisive role in the formation of the yuan exchange rate, and give full play to the exchange rate's role as an automatic stabilizer in adjusting the macro economy and international payments. There are many factors affecting the exchange rate. The exchange rate's uncertainty is inevitable, while its two-way fluctuations are normal. Enterprises and financial institutions should establish the concept of "risk-neutral." Financial institutions should actively provide exchange-rate risk-management services for MSMEs, in order to reduce their costs of hedging exchange-rate risks. Our goal is to keep the yuan exchange rate generally stable at an appropriate and balanced level. Although the exchange rate may deviate from the equilibrium level in the short term, market and policy factors will correct the deviation in the mid- and long-term. Thank you.

Xing Huina:

Thanks for the introduction from Mr. Liu. Now the floor is open to questions. Please indicate the media organization you work for before raising a question.

CCTV:

My question is, in order to prioritize stability, how will the PBC implement the spirit of the Central Economic Work Conference to enhance policy predictability when exerting the role of monetary policies? Thank you.

Liu Guoqiang:

In 2021, we maintained a prudent monetary policy that was flexible, precise, reasonable and appropriate, and took initiative measures in the second half of the year. We cut the RRR by 0.5 percentage point in July, responding early to downward pressure on the economy and paving the way for sustained and steady economic recovery in the second half of 2021 and in the first quarter of 2022. The Central Economic Work Conference proposed that policy efforts should be appropriately advanced. Following the deployments of the CPC Central Committee and the State Council, the PBC launched a series of measures in December 2021, especially after the Central Economic Work Conference. We cut the RRR by 0.5 percentage point, convened a symposium on analyzing the monetary and credit situation for financial institutions, cut off 25 basis points in the interest rates of the re-lending facility supporting agricultural and small businesses, lowered the one-year LPR by 5 basis points, and transferred the "two direct tools" to market-based policy tools for supporting small and micro enterprises. One of the direct tools is the inclusive loan extension support tool. During the special period of the epidemic, we asked financial institutions to extend their loans to enterprises eligible for relative policies and simultaneously provided certain policy incentives. The other tool is the inclusive credit loan support program. At present, China has entered a new normal in economic development while epidemic prevention and control are being conducted on an ongoing basis. Therefore, the two direct tools should be transferred to market-based policy tools. In the past, the policy was based on requirement and policy incentives; whereas now, it's based on a voluntary and incentive mechanism. Financial institutions and enterprises are encouraged to communicate on their own. If the financial institution would like to extend its loans, we will provide certain policy incentives. We will step up cross-cycle adjustment to support economic growth in 2022.

Currently, the economy faces three kinds of pressure. Therefore, maintaining stability is the biggest progress. Before fundamentally easing the economic downward pressure, progress should serve stability. We will not roll out policies that aren't beneficial to stability but release policies that are conducive to stability so that progress can promote stability. Simply put, the priority goal of our current work is stability, and policy support should be redoubled. How to redouble policy support? I think efforts can be made in the following three aspects. First, ample support. The monetary policy tool kits should be further opened to maintain stable aggregates and avoid credit collapse. Second, targeted support. We should attain to the broad and great while addressing the delicate and minute. The financial sector should not only passively wait for clients at their doorsteps, but need to go out and actively look for good projects, which is an effective way of optimizing economic structures, in line with the requirements of the new development philosophy. Third, proactive support. Though it is still the beginning of the year, we should lose no time and act proactively as a year is short. We should stay ahead of the market curve, and respond to common market concerns in a timely manner. We should not procrastinate. Otherwise, market concerns will fall through and go away. If that happened, it would be a difficult situation. Therefore, we should act in advance and promptly respond to common market concerns. 

Under the strong leadership of the CPC Central Committee and the State Council, all parties are making efforts. I believe that we will also find a year quite long and the downward pressure of the economy will become a story of the past within several months. What efforts will be made?

First, maintain stable growth of the aggregate. We will use comprehensive monetary policy instruments to keep liquidity adequate at a reasonable level. Money and credit aggregates will grow at a more stable pace to ensure the increases in money supply and aggregate financing are generally in step with economic growth in nominal terms.

Second, promote steady structure improvements. We should innovate and give good play to structural monetary policy instruments and ramp up credit support for MSBs, technological innovation and green development. 

Third, promote steady decline of the financing costs for enterprises. We will continue to unleash the benefits of the LPR reform, maintain fair competition in the deposit market and stabilize bank liability costs. It is important to maintain orderly competition within the deposit market. If the competition in the deposit market is disorderly, the deposit interest rate will be very high. Low-quality banks and those that perform poorly usually find it hard to attract deposits, so they attempt to lure depositors with high deposit interest rates. Other banks will have to follow. This way, the order of the deposit market and the deposit interest rates will be misguided by those poorly-performing banks. Therefore, deposit order is crucial. Besides, if the deposit interest rate was too high, it would be hard to reduce the loan interest rate and the financing costs of enterprises. That is why we make great efforts to maintain the order of the deposit market, stabilize bank liability costs and promote a steady decline of the overall financing costs for enterprises, especially MSBs.

The Paper.cn:

The PBC and other financial management authorities have taken some measures in response to new situations and new changes in the real estate market. What about the effects? Thank you. 

Zou Lan:

In the second half of 2021, the risks of individual real estate enterprises such as China Evergrande Group appeared. Affected by that, all kinds of real estate market entities tended to avoid risks and financial institutions demonstrated short-term stress responses. According to the arrangements of the CPC Central Committee and the State Council, the financial management departments took swift actions and carried out the following work. First, upholding law-based and market-based principles, we cooperated with the Guangdong provincial government, as well as relevant departments and local governments to defuse the risks of those enterprises. Second, we instructed financial institutions in the banking industry to get a precise understanding of, and comply with, the prudential management system of real estate financing. The banking industry should maintain an orderly and stable supply of real estate credits and meet the reasonable financing needs of the real estate market. Third, the PBC released its Notice on Financial Services for Mergers and Acquisitions of Risk Disposal Projects of Major Real Estate Enterprises to guide financial institutions to support risk dissolution and industry clearing in market-based manners. 

Through the concerted efforts of all parties, recently, real estate sales, land purchases and financing, among other areas, have gradually returned to normal. The market expectations have steadily improved. According to statistics, at the end of 2021, outstanding real estate loans nationwide were 52.2 trillion yuan, up by 7.9% year on year, a growth rate 0.3 percentage points higher than at the end of September. Specifically, new real estate loans in the fourth quarter last year hit 773.4 billion yuan, an increase of 202 billion yuan year on year, and 157.8 billion yuan over the third quarter. 

Going forward, the PBC will firmly implement the decisions and arrangements of the CPC Central Committee and the State Council, follow the principles of the Central Economic Work Conference, and act on the principle that housing is for living in, not for speculation. Following the requirements to explore a new development model, we will put in place a long-term mechanism for the real estate industry and maintain the continuity, consistency and stability of real estate financial policies. The PBC will continue to implement the prudential management system of real estate finance, ramp up financial support for rental housing and adopt city-specific policies to ensure a virtuous cycle and healthy development of the real estate sector. Thank you. 

South China Morning Post:

The PBC on Monday unexpectedly cut the interest rates of its medium-term lending facility (MLF) loans and the open market reverse repo rate. Does this mean a new round of easing cycle is unfolding? Will it be followed by a corresponding LPR cut within the week? Meanwhile, the Federal Reserve hinted at quicker tapering and interest rate hikes. Is the PBC worried about the impacts brought by the monetary policy divergence between China and the U.S., including capital outflow or yuan depreciation? Is there any detailed arrangement for China-U.S. macro-policy coordination? Thank you.

Sun Guofeng:

This year, the PBC has strengthened cross-cyclical adjustments and stepped up liquidity injection. On Jan. 17, the PBC cut the interest rates of its one-year MLF loans and seven-day open market operations by 10 basis points, which was followed by corresponding reductions to the interest rates in the money market and the bond market. Before the new LPR was disclosed, quotation banks gave comprehensive consideration to factors such as capital costs, risk premiums and the market supply and demand, so that the LPR would promptly and fully reflect interest rate changes in the market, encourage financial institutions to lower their interest rates on loans for enterprises and promote a reduction in overall financing costs for enterprises. We have noticed the recent monetary policy adjustments by major developed economies, and the market expects that the Fed will raise interest rates and shrink its balance sheet. China's macro-economy is big and highly resilient. We have been implementing normal monetary policies since the outbreak of the pandemic. Instead of using a deluge of stimulus policies, we properly organized cross-cyclical regulation, kept liquidity reasonably ample and provided solid financial support for the real economy. China's financial system has become more stable and domestically driven. The yuan exchange rate expectations are also stable. All of this will help mitigate and respond to external risks. In general, policy adjustments by major developed economies will have a limited effect on our economy.

Next, the PBC will prioritize stability and work according to China's conditions. We will implement prudent monetary policies with the proper force and pace based on domestic situations, while increasing the yuan exchange rate's resilience to give full play to the role of the exchange rate as an automatic stabilizer capable of adjusting the macro-economy and the balance of payments. We will also encourage market entities to establish a "risk-neutral" attitude, strengthen the macro and prudent management of cross-border capital flow, better manage expectations, maintain basic stability in the yuan exchange rate, and respond to monetary policy adjustments by major developed economies in a proactive and prudent manner. Thank you.

21st Century Business Herald:

What were the structural features of total social financing (TSF) in 2021? What's your forecast for the TSF and credit increase in 2022? Thank you.

Ruan Jianhong:

I will answer your questions. In 2021, total new social financing reached 31.35 trillion yuan, a reduction of 3.44 trillion yuan from the 2020 level and an increase of 5.68 trillion yuan from the 2019 level. The figures reflect that finance still played a big role in supporting the real economy. By the end of 2021, total outstanding social financing had risen 10.3% year on year, which is consistent with the nominal GDP growth.

In terms of the TSF structure, the first feature is that loans from financial institutions to the real economy remained stable. In 2021, loans in yuan and foreign currencies to the real economy increased by 20.11 trillion yuan, roughly in line with the 2020 level and an increase of 3.36 trillion yuan from the 2019 level.

Second, bond financing returned to normal level and stock financing saw accelerated growth. In 2021, government bond financing reached 7.02 trillion yuan, a reduction of 1.31 trillion yuan from the 2020 level. This was because the government had issued one trillion yuan of special anti-pandemic bonds in 2020, while in 2021, the bond issuance returned to normal conditions. Bond financing by non-financial companies reached 3.29 trillion yuan, down by 1.09 trillion yuan from the 2020 level. Domestic stock financing by non-financial companies reached 1.24 trillion yuan, up by 343.4 billion yuan from the 2020 level.

Third, off-balance-sheet financing declined notably. In 2021, off-balance-sheet financing, including entrusted loans, trust loans, and undiscounted bankers' acceptances, declined by 2.67 trillion yuan, 1.35 trillion yuan more than 2020's decrement.

In 2022, the PBC will fully implement the principles of the Central Economic Work Conference and maintain a prudent monetary policy that is flexible and moderate. We will also maintain reasonable and ample liquidity, and ensure that the growth of TSF is basically in keeping with GDP growth in nominal terms. Thank you.

Economic Daily:

My question is – just yesterday, the PBC cut interest rates for reverse repo operations and MLF by 10 basis points, so I'm curious what this cut is for? And what will the effect be after lowering interest rates? Thank you. 

Sun Guofeng:

The MLF and open market reverse repurchase are carried out by market-based bidding. The winning interest rate is generated by participating bidding institutions, and the interest rate level depends on various factors such as the liquidity of the banking system, financial institutions' demand for central bank funds and market expectations. Since the beginning of this year, the PBC has implemented the spirit of the Central Economic Work Conference, strengthened cross-cycle adjustment and increased liquidity delivery. On Jan. 17, the PBC launched a 700 billion yuan one-year MLF operation and conducted 100-billion-yuan seven-day open market reverse repo operations to increase liquidity supply, and to hedge against the impact of short-term factors such as the peak of the tax period in January, accelerated issuance of government bonds and cash injection before Spring Festival, in order to maintain reasonable and sufficient liquidity. So the PBC promoted the MLF and open market reverse repurchase bid rates, which both fell by 10 basis points. Specifically, the winning bid interest rate for the one-year MLF dropped from 2.95% to 2.85%, and the winning bid rate for the seven-day open market reverse repurchase operation dropped from 2.2% to 2.1%.

These recent cuts in interest rates for the MLF and open market reverse repo operations reflect actions by the monetary policy proactively pushing things forward, which is conducive to boosting market confidence. The operations would reduce corporate loan interest rates through the LPR conductivity, facilitate the decline in bond interest rates and promote comprehensive financing costs of enterprises to be stable with a decline. This will help stimulate the financing needs of market entities, enhance the stability of total credit growth, support the issuance of government bonds and local government bonds, stabilize the broader economy and maintain a balance between internal and external equilibrium. Thank you.

Yicai:

Recently, the financial data released by the central bank has shown a rapid decline in the growth rate of social financing. We have paid attention to the research reports issued by some securities companies, in which they believe that financing should be properly stimulated next year to resume growth. In your opinion, is the leverage ratio likely to stabilize and pick up next year? Thank you.

Liu Guoqiang:

Let me answer this question. In 2021, against the backdrop of scientific and effective pandemic prevention, remarkable results were achieved in stabilizing leverage and promoting growth. In 2021, China's macro leverage ratio was 272.5%, 7.7 percentage points lower than that at the end of 2020. If viewed from a quarterly perspective, the leverage ratio has declined for five consecutive quarters. There are both numerator and denominator factors that affect the macro leverage ratio. The numerator is the total debt, and the denominator is the gross domestic product (GDP). That is to say, the macro leverage ratio is total debt divided by GDP. In terms of the numerator, the total debt level was generally stable last year, while in terms of GDP as the denominator, it expanded significantly last year, and the growth rate is relatively fast. Especially compared with 2020, the GDP growth rate has accelerated significantly, which has a very prominent effect on reducing leverage. China's pandemic prevention and control are effective, the national economy continues to recover and development resilience continues to increase. When these factors are brought into play, GDP growth will be faster, the denominator will be larger and the macro leverage ratio will drop.

It is expected that the macro leverage ratio will remain basically stable in 2022. According to the Central Economic Work Conference, the economic work for 2022 should prioritize stability and seek progress while maintaining stability. Macroeconomic policies must be stable and effective to enhance developing the endogenous driving force. The current macro leverage ratio continues to decline, creating space for the financial system to increase support for MSBs, technological innovation and green development in the future. The decline in macro leverage over the five consecutive quarters has created room for future monetary policies, and, the lower the leverage, the greater the room. From an international perspective, China's pandemic prevention and control situation is relatively good, and economic growth is relatively resilient. It is expected that China's economic growth this year will still be faster than that of major developed economies. In this case, the denominator will remain relatively large, which will create conditions for better maintaining the macro leverage ratio in the future. We will adhere to systematic thinking, overall planning and coordination, base ourselves on serving high-quality economic development and implement cross-cycle monetary policy. Thank you.

CNBC:

I have two questions. First, what are the favorable policies for housing purchase and loans? Second, what progress has been made in digital RMB piloting programs and research and development? For example, is there any information on the daily transactions and active users to share? What new application scenarios will digital RMB have for consumption among others? More foreigners will come to China during the Beijing 2022 Winter Olympics, and will there be any attempt to employ it then? Thank you.

Zou Lan:  

I will answer the second question first. At present, the PBC has launched pilot digital RMB programs in places including Shenzhen, Suzhou, Xiongan New Area, Chengdu, Shanghai, Hainan, Changsha, Xi'an, Qingdao, and Dalian, and built pilot scenarios for the Beijing 2022 Winter Olympics, basically covering the Yangtze River Delta, the Pearl River Delta, and Beijing-Tianjin-Hebei region as well as central, western, northeastern, and northwestern China. As of December 31, 2021, the number of digital RMB pilot scenarios had exceeded 8.0851 million, and individual wallets had totaled 261 million, with 87.565 billion yuan in transactions. The pilot programs have effectively verified the business technical design, system stability, easy use of products, and scenario applicability of digital RMB, and helped the public better understand its design concept.  

Next, the PBC will act in accordance with the 14th Five-Year Plan (2021-2025), continue to steadily pilot digital RMB R&D, and further deepen the pilot use of digital RMB in retail transactions, household payments, government services, and other scenarios. The PBC will guide the pilot R&D of digital RMB to serve the real economy and people's lives so as to make more enterprises and individuals recognize the value of digital RMB and fully stimulate the enthusiasm of industrial players.  

Your first question is about the housing purchase policy. Being region-based is one of the core features of the real estate. Under the management framework of long-term real estate mechanisms, it is more important for municipal governments to assume their responsibilities and conduct city-specific real estate regulations based on the local markets. Therefore, you can ask the municipal governments for more information about the home purchase policy. As for the home loans policy, as I said before, we will still act on the principle that houses are for living in, not for speculation, and maintain basic stability in line with the long-term mechanism. We will stabilize land prices, housing prices and expectations – the priority of stabilizing expectations is to keep policy expectations steady. Indeed, as I mentioned before, various parties, especially some financial institutions, reacted to market changes based on their judgment of market trends and risk evolution in the second half of last year. As a result, since September last year, the PBC has, along with other financial management departments, strengthened communication with related financial institutions to help them accurately understand and assess market situations and better implement prudent financial regulation of the real estate so as to meet the reasonable financing needs of the real estate market. Thank you.  

Phoenix TV:  

I also want to focus on monetary policy. Yesterday, the PBC cut the interest rates. How does the PBC view the possibility of a further RRR cut? Specifically, is it possible to further cut the RRR in January? Is there any room to cut interest rates in the first quarter? Thank you.

Liu Guoqiang:

Thank you for your question, I will answer it. Regarding interest rates, with the steady progress of market-based interest rates reforms, especially since the LPR reform in 2019, China has gradually improved the formation, regulation, and transmission mechanisms of market-oriented interest rates. There are two perspectives to view the state of interest rates next. One is to look at the actual changes in interest rates of loans, which means just looking at the results. Since 2021, the PBC has continued to optimize the LPR reform, improved the transmission mechanism of monetary policy, and enhanced the competitiveness of the credit market. As a result, the actual interest rates of loans have decreased while maintaining stability on the basis of a substantial decline in the previous year. Throughout 2021, the interest rates of loans for enterprises stood at 4.61%, the lowest level since the reform and opening-up more than 40 years ago.  

The other angle is to look at factors affecting interest rates or to analyze the reasons behind the changes. LPR is the market-quoted interest rate for loans that banks charge their prime customers. Factors like funding cost, market supply and demand, and risk premium may affect LPR, while the interest rate of open market operations, MLF rate, and the regulation of deposit interest rate may affect funding cost. Since 2021, the PBC has strengthened cross-cyclical adjustment, cutting down the RRR twice, in July and December, to maintain liquidity at a reasonably sufficient level. We improved self-discipline management of deposit interest rates in June, and cut interest rates for relending in the agriculture sector and small enterprises by 0.25 percentage point in December. These policies have effectively lowered funding costs for banks and driven the one-year LPR of last December down by 5 basis points. The rationale is that the reduction of funding costs for banks would lead to a decrease in interest rates for loans. On Jan. 17 this year, the PBC increased liquidity, bringing down the bid rate of both the seven-day open market operations and the one-year MLF by 10 basis points. Interest rates in the monetary market and the bond market have thus fallen. In two days, on Jan. 20, commercial banks will offer their best interest rates for loans. Sensitive to factors such as funding costs, the banks will do so by making timely references to their latest changes.

I would like to take this opportunity to make some explanations about LPR. It is a general term, and there is no LPR by industry. There are two types: one-year and five-year. Financial institutions generally refer to one-year LPR in terms of extending liquidity loans, or short-term loans, to businesses, and refer to five-year LPR in issuing medium- to long-term loans, such as loans to the manufacturing sector, fixed asset investment loans, and loans for individual home purchases, and other loans with relatively long terms, which is the bases for which their interest rates are quoted. As a macro variable, LPR does not change in an industry-specific manner. In other words, it affects all industries instead of targeting individuals, and it is a general and inclusive term, rather than being tailored for any single person, but its fluctuations affect everyone. That is why it is inclusive rather than targeting any specific industry or individual.

As for the RRR, the PBC cut it by 0.5 percentage point in July and December 2021, freeing up 2.2 trillion yuan of long-term funds. The funds improved the funding structure of financial institutions and demonstrated the financial sector's capacity to serve the real economy. After cutting the RRR, the current average RRR for financial institutions stands at 8.4%. It is no longer high compared to other developing economies or China's historical figures and leaves less room for further adjustment going forward. Yet from another point of view, there is still a certain amount of space, though it is narrower, which we can make use of in light of economic and financial performance as well as macro regulation needs. Thank you.

Bloomberg:

I have two questions. My first question is, what will be the impact of divergence in interest rates between the U.S. and China, as the federal reserve starts to rise? Will monetary policy divergence have an effect on the exchange rate and how will you deal with that? My second question is, do you think corporate borrowing demand is weak based on the December data? We saw a lot of very short-term loans being made between banks and banks making very short-term loans to companies. Do you think the company loan demand is fundamentally weak? Thank you.

Sun Guofeng:

Let me take these two questions. Regarding your first question, China adopts a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies. Future yuan exchange rates are subject to many factors, including market supply and demand and international market trends, with the former playing a decisive role in forming the exchange rate. Fluctuations in the exchange rate are mainly determined by the market and make the yuan either appreciate or depreciate. With its enhanced elasticity and two-way fluctuations, the yuan exchange rate serves as an automatic stabilizer of the macro-economy and the international balance of payment and contributes to the balance between the internal and external equilibrium. Cross-border flows of funds may fluctuate to some extent with changes in the international financial market, but China's super-large economy sustains a sound domestic economy, which provides a good foundation for maintaining the internal and external equilibrium.

Generally, cross-border financial flows would maintain a dynamic equilibrium. Next, the PBC will prioritize stability and pursue a prudent monetary policy that is flexible and modest. We will place our situation at the center, and give play to the role of yuan exchange rates adjusting the macroeconomy and acting as the automatic stabilizer for international payment balance. We will strengthen macro-prudential management of the cross-border flow of capital, intensify expectation management, guide enterprises and financial institutions in cultivating a "risk-neutral" concept, balance the domestic and international equilibrium and keep the yuan exchange rates basically stable at a reasonable and balanced level. 

Now I rely to the second question. Since 2021, we have adopted a prudent monetary policy that is flexible, precisely-targeted, reasonable and modest. In the face of downward pressure from contracted demands, supply shock and diminished expectations, the PBC – beginning in the second half of 2021 – has enacted forward-looking measures including cutting the RRR, increasing the reloan quota for small financial institutions, rolling out supportive tools for carbon reduction and offering reloans to promote clean and efficient use of coal, so as to intensify the financial support for real economy. Since December, in line with the arrangements of the Central Economic Work Conference, the PBC has further intensified cross-cycle adjustments to ensure the policy cohesion between two years. We have cut the RRR by 0.5 percentage points again and guided financial institutions in increasing the stability of growth in the volume of loans. The PBC has lowered its one-year LPR by five basis points, and actively leveraged structural monetary policy tools to do a good job of "addition," and carried out the extension and transformation of two direct tools. These measures have been beneficial to the stabilization of the credit supply and the optimization of the credit structure in 2021 and ensuring a steady start in 2022. The volume of new loans stood at 19.95 trillion yuan in 2021, up 315 billion yuan year-on-year. This was a further growth considering that the volume of new loans had increased by 2.8 trillion yuan year-on-year from 2019 to 2020 and this showed that the financial support for real economy has continued to intensify. The volume of loans had increased significantly from 2019 to 2020 on a year-on-year basis, so the increase in 2021 was a further growth from that. In December 2021, new loans of the month reached 1.13 trillion yuan, rising slightly on a year-on-year basis, mainly due to the fact that financial institutions had expanded their credit supplies to fight against COVID-19 in 2020 and thus created a relatively high base. Historically, the amount of loans in December is often small, and the average volume of new loans was less than 1 trillion yuan in December from 2016 to 2019. So, the loans in December 2021 still increased compared with the years before the outbreak of COVID-19, showing the results achieved by introducing relevant policies at an early stage. Since the beginning of this year, the PBC has strengthened cross-cycle adjustment, increased liquidity, lowered the median interest rate by 10 basis points for the MLF and open market operations, helping spur financing needs of market entities and increase the stability of credit growth. 

Next, the PBC will prioritize stability and pursue a prudent monetary policy that is flexible and modest. We will increase the intensity of cross-cycle adjustments, better play monetary policies' role in volume and structure regulation, maintain reasonably adequate liquidity and guide financial institutions in effectively increasing credit availability. With the effects of a variety of policies adopted by the PBC emerging and accumulating, financial institutions will increase loans to the real economy. Growth of credit supplies will be more stable, while more credit resources will be channeled to key areas and weak links such as small and micro enterprises, scientific and technological innovation, and green development, among others, so as to ensure that money supply and social financing are generally in step with the economic growth in nominal terms. Thank you!

Ruan Jianhong:

I will add some data for the second question. The amount of outstanding domestic and foreign currency loans to enterprises and institutions increased 11 percent at the end of last year, 1.4 percentage points lower than the previous year, but 0.5 percentage points higher than in 2019. The amount of new loans to enterprises and institutions added 12.14 trillion yuan for the whole year and was roughly the same as the previous year. The amount of medium and long-term loans added 9.24 trillion yuan, up 464.2 billion yuan year-on-year. 

In terms of the actual flow of medium- and long-term loans, the scale of support provided by financial institutions to key sectors is still consistent and stable, which is reflected in the following aspects:

First, the manufacturing industry's medium- and long-term loans maintained rapid growth. As of the end of 2021, the manufacturing industry's medium- and long-term loans grew 31.8%, 18.1 percentage points higher than the growth rate of such loans for all industries. In 2021, loans for the manufacturing industry increased by 1.67 trillion yuan, 300.5 billion yuan more than the previous year. Specifically, the growth rate of medium- and long-term loans for the high-tech manufacturing industry was 32.8% in 2021, 364.3 billion yuan more than the previous year.

Second, the industrial sector's medium- and long-term loans saw a relatively high growth rate. As of the end of 2021, the industrial sector's medium- and long-term loans increased 22.6%, 2.6 percentage points higher than the previous year's end. The sector saw 2.49 trillion more medium- and long-term loans in 2021, increasing 650.3 billion yuan year-on-year.

Third, the infrastructure sector's medium- and long-term loans sustained a steady and robust growth rate. As of the end of 2021, this growth rate was 15.3%, 1.1 percentage points higher than the previous year's end. A total of 3.82 trillion yuan of medium- and long-term loans was added to the infrastructure sector in 2021, increasing 734.6 billion yuan year-on-year.

Fourth, the service industry's medium- and long-term loans, excluding the real estate sector, have kept growing fast. Its growth rate reached 15.4% as of the end of 2021, 1.7 percentage points higher than the growth rate of such loans for all industries. A total of 5 trillion yuan of medium- and long-term loans was added to this industry in 2021, 261.8 billion yuan more than the previous year. Thank you.

Liu Guoqiang:

Regarding the first question on the exchange rate, I would like to make a few more points for your reference. Observing the trend of the exchange rate is getting tougher and tougher nowadays. In the past, the exchange rate fluctuations between the yuan and the U.S. dollar were rather regular, as they sat on the opposite ends of a seesaw. This meant that when the U.S. dollar appreciated, the yuan would be devalued relatively. Still, there were several cases in 2021 when the U.S. dollars appreciated while the yuan showed a stronger trend. This seems unreasonable and makes short-term observation even more difficult. However, it can still make sense. For instance, China's economy posted fast growth last year with a relatively high trade surplus, and the expectations for China's economy were rather promising at the early stage. Therefore, the yuan appreciated, which led to a situation where the U.S. dollar appreciated while the yuan got even stronger. Nevertheless, if we look at the longer span of time, the situation will make more sense, and the fluctuations are still reasonable, balanced, and reciprocal. Thus, the exchange rate fluctuations remain consistent and stable, and relevant rules haven't changed in the long run, only that the calculation and forecast in the short term have become difficult. 

In addition, China is one of the major countries in the world. A continued unilateral appreciation or devaluation rarely occurs in big countries, and it will never happen in China. This is due to our sound macro regulation. Instead of flooding China's economy with liquidity, we have been following economic rules, and our micro-market mechanism proves to be effective. As a result, although there may be some interferences, the exchange rate fluctuations between the yuan and the U.S. dollar are generally reasonable, balanced, and stable on the whole. Thank you.

Xing Huina:

Thank you to today's speakers for their professional and detailed response and introduction. Today's press conference is at this moment concluded. Thank you to all our friends from the media.

Translated and edited by Lin Liyao, Wang Wei, Li Xiao, Li Huiru, Zhang Rui, Liu Qiang, Zhang Tingting, Liu Sitong, Zhu Bochen, Wang Yiming, He Shan, Xu Xiaoxuan, Zhang Jiaqi, Wang Qian, Yuan Fang, Liu Jianing, David Ball, Jay Birbeck, Drew Pittock and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speaker:

Ning Jizhe, commissioner of the National Bureau of Statistics

Chairperson:

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

Date: 

Jan. 17, 2022

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Ning Jizhe, commissioner of the National Bureau of Statistics (NBS), to introduce China's economic performance in 2021, and answer your questions. Now, I would like to give the floor to Mr. Ning.

Ning Jizhe:

Friends from the media, good morning. In 2021, faced with multiple challenges including a grave and complex international environment and sporadic outbreaks of the pandemic at home, 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 fully implemented the policy decisions and plans of the CPC Central Committee and the State Council, adhered to the general working guideline of making progress while maintaining stability, coordinated epidemic prevention and control work with socio-economic development, took solid steps to ensure stability on the six fronts (employment, finance, foreign trade, foreign investment, domestic investment and market expectations) and security in the six areas (employment, people's livelihood, market entities, food and energy, stability of industrial and supply chains, and grassroots operations), strengthened the macro polices for cross-cyclical adjustment, and increased the support to the real economy. As a result, national economic recovery and development were sustained, reform and opening-up and innovation were further advanced, people's livelihoods were strongly and effectively safeguarded, new strides were made in building a new development pattern, and new achievements were secured in high-quality development, thus kicking off a good start for the 14th Five-Year Plan.

According to preliminary estimates, the gross domestic product (GDP) was 114.37 trillion yuan in 2021, an increase of 8.1% over the previous year at constant prices with average two-year growth of 5.1%. By quarter, the GDP for the first quarter went up by 18.3% year on year, up by 7.9% for the second quarter, 4.9% for the third quarter and 4% for the fourth quarter. By industries, the value added of the primary industry was 8.31 trillion yuan, up by 7.1% over the previous year, that of the secondary industry was 45.1 trillion yuan, up by 8.2% and that of the tertiary industry was 60.97 trillion yuan, up by 8.2%.

First, grain output reached a new high and production of animal husbandry grew steadily.

The total output of grain in 2021 was 682.85 million metric tons, an increase of 13.36 million metric tons, or up by 2% over the previous year. Of this total, the output of summer grain was 145.96 million metric tons, up by 2.2%, and that of early rice was 28.02 million metric tons, up by 2.7%. The output of autumn grain reached 508.88 million metric tons, up by 1.9%. By crop variety, the output of rice was 212.84 million metric tons, up by 0.5%; wheat, 136.95 million metric tons, up by 2%; corn, 272.55 million metric tons, up by 4.6%; and soybean, 16.4 million metric tons, down by 16.4%. The total output of pork, beef, mutton and poultry in 2021 was 88.87 million metric tons, up by 16.3% over the previous year. Of this total, the output of pork was 52.96 million metric tons, up by 28.8%; beef, 6.98 million metric tons, up by 3.7%; mutton, 5.14 million metric tons, up by 4.4%; poultry, 23.8 million metric tons, up by 0.8%; milk, 36.83 million metric tons, up by 7.1%; and eggs, 34.09 million metric tons, down by 1.7%. At the end of 2021, pigs and breeding sows registered in stock were up by 10.5% and 4%, respectively, compared with the end of 2020.

Second, industrial production experienced sustained development and high-tech manufacturing and equipment manufacturing enjoyed fast growth.

The total value added of industrial enterprises above designated size increased by 9.6% over the previous year, with average two-year growth of 6.1%. In terms of sectors, the value added of mining was up by 5.3%, that of manufacturing was up by 9.8% and that of production and supply of electricity, thermal power, gas and water was up by 11.4%. The value added of high-tech manufacturing and equipment manufacturing went up by 18.2% and 12.9%, respectively, or 8.6 percentage points and 3.3 percentage points faster than that of industrial enterprises above designated size. By products, the production of new energy vehicles, industrial robots, integrated circuits, and micro computer equipment grew by 145.6%, 44.9%, 33.3% and 22.3%, respectively. In terms of ownership, the value added of state holding enterprises grew by 8%, that of share-holding enterprises was up by 9.8%, that of enterprises funded by foreign investors and investors from Hong Kong, Macao and Taiwan was up by 8.9% and that of private enterprises was up by 10.2%. In December, the total value added of industrial enterprises above designated size grew by 4.3% year on year with an increase of 0.42% month on month. The Manufacturing Purchasing Managers' Index was 50.3%, 0.2 percentage points higher than that of the previous month. In 2021, the national industrial capacity utilization rate reached 77.5%, 3 percentage points higher than that of the previous year.

In the first eleven months of last year, the total profits made by industrial enterprises above designated size were 7.98 trillion yuan, up by 38% year on year with an average two-year growth of 18.9%. The profit rate of the business revenue of industrial enterprises above designated size was 6.98%, up by 0.9 percentage points year on year.

Third, the service sector witnessed sustained recovery with modern service industries demonstrating sound growth momentum.

The tertiary industry experienced fast growth in 2021. In terms of industries, the value added of the information transmission, software and information technology services, accommodation and catering services, and transportation, storage and postal services grew by 17.2%, 14.5% and 12.1% over the previous year respectively, maintaining the restorative growth. In 2021, the Index of Services Production grew by 13.1% compared with that of the previous year with an average two-year growth of 6%. In December, the Index of Services Production grew by 3% year on year. In the first eleven months of last year, business revenue of service enterprises above designated size grew by 20.7% year on year with average two-year growth of 10.8%. In December, the Business Activity Index for services was 52%, 0.9 percentage points higher than that of the previous month. Specifically, the Business Activity Index for sectors like telecommunication, broadcast, television and satellite transmission services, monetary and financial services, and capital market services stayed within the high expansion range of 60% and above.

Fourth, market sales expanded with sales of basic living goods and upgraded consumer goods growing fast.

In 2021, the total retail sales of consumer goods reached 44.08 trillion yuan, up by 12.5% over the previous year with an average two-year growth of 3.9%. Analyzed by different areas, retail sales in urban areas reached 38.16 trillion yuan, up by 12.5%; and retail sales in rural areas stood at 5.93 trillion yuan, up by 12.1%. Grouped by consumption patterns, the retail sales of goods were 39.39 trillion yuan, up by 11.8%; and the income from catering was 4.69 trillion yuan, up by 18.6%. The basic living consumption sustained good momentum of growth, with the retail sales of beverages and grain, oil and food by enterprises above designated size growing by 20.4% and 10.8% over the previous year. The demand for upgraded consumer goods continued to be unleashed, with the retail sales of gold, silver and jewelry and that of cultural and office supplies by enterprises above designated size growing by 29.8% and 18.8%, respectively. In December, the total retail sales of consumer goods grew by 1.7% year on year, or down by 0.18% month on month. In 2021, national online retail sales reached 13.09 trillion yuan, growing by 14.1% over the previous year. Specifically, the online retail sales of physical goods were 10.8 trillion yuan, up by 12%, accounting for 24.5% of the total retail sales of consumer goods.

Fifth, investment in fixed assets continued to increase and investment in manufacturing and high-tech industries maintained a good growth momentum.

In 2021, the investment in fixed assets (excluding rural households) reached 54.45 trillion yuan, up by 4.9% over the previous year with an average two-year growth of 3.9%. Specifically, investment in infrastructure rose by 0.4%, manufacturing was up by 13.5% and real estate development was up by 4.4%. The floor space of commercial buildings sold reached 1.79 billion square meters, up by 1.9%. The total sales of commercial buildings were 18.19 trillion yuan, up by 4.8%. In terms of industries, investment in the primary industry went up by 9.1%; that in the secondary industry was up by 11.3%; and that in the tertiary industry was up by 2.1%. Private investment was 30.77 trillion yuan, up by 7%, accounting for 56.5% of the total investment. The investment in high-tech industries grew by 17.1%, 12.2 percentage points faster than the total investment, of which the investment in high-tech manufacturing and high-tech services grew by 22.2% and 7.9%, respectively. In terms of high-tech manufacturing, the investment in electronics and communication equipment manufacturing and in manufacturing of computers and office equipment grew by 25.8% and 21.1%, respectively. In terms of high-tech services, the investment in e-commerce services and services for transformation of scientific and technological achievements grew by 60.3% and 16%, respectively. Investment in the social sector went up by 10.7% over the previous year. Specifically, the investment in the health sector and education sector went up by 24.5% and 11.7%, respectively. In December, the investment in fixed assets grew by 0.22% month on month.

Sixth, the import and export of goods registered fast growth and the trade structure continues to optimize.

The total value of imports and exports of goods in 2021 amounted to 39.1 trillion yuan, up 21.4% year on year. Specifically, the total value of exports reached 21.73 trillion yuan, up by 21.2%; and that of imports was 17.37 trillion yuan, up by 21.5%. The trade balance was 4.37 trillion yuan in surplus. The imports and exports of general trade grew by 24.7%, accounting for 61.6% of the total value of foreign trade, an increase of 1.6 percentage points over the previous year. Imports and exports from private enterprises grew by 26.7%, accounting for 48.6% of the total value of foreign trade, two percentage points higher than that of the previous year. In December, the total value of imports and exports of goods was 3.75 trillion yuan, up by 16.7% year on year. Specifically, the total value of exports in December was 2.18 trillion yuan, up by 17.3%; and that of imports was 1.57 trillion yuan, up by 16%. The trade balance was 604.7 billion yuan in surplus.

Ning Jizhe:

Seventh, consumer prices grew moderately and the growth of producer prices for industrial products decreased from high levels.

The consumer price index (CPI) in 2021 went up by 0.9% over the previous year. Specifically, the CPI went up by 1% in urban areas and 0.7% in rural areas. Grouped by commodity categories, prices for food, tobacco and alcohol went down by 0.3%; clothing up by 0.3%; housing up by 0.8%; articles and services for daily use up by 0.4%; transportation and communication up by 4.1%; education, culture and recreation up by 1.9%; medical services and health care up by 0.4%; and other articles and services down by 1.3%. In terms of food, tobacco and alcohol, prices for grain went up by 1.1%, fresh vegetables up by 5.6%; and pork down by 30.3%. Core CPI excluding the prices of food and energy went up by 0.8%. The CPI in December went up by 1.5% year on year, 0.8 percentage points lower compared with the previous month, and down by 0.3% month on month. In 2021, the producer prices for industrial products went up by 8.1% over the previous year. The figure in December went up by 10.3% year on year, 2.6 percentage points lower than the previous month, and down 1.2% month on month. In 2021, the purchasing prices for industrial producers went up by 11% over the previous year. The figure in December went up by 14.2% year on year and down 1.3% month on month.

Eighth, employment was generally stable and surveyed unemployment rates in urban areas declined.

In 2021, the number of new jobs created in urban areas totaled 12.69 million, 0.83 million more than the previous year. The surveyed unemployment rate in urban areas in 2021 averaged 5.1%, 0.5 percentage points lower than the average of the previous year. In December, the surveyed unemployment rate in urban areas was 5.1%, 0.1 percentage points lower than the same period of the previous year. Specifically, the surveyed unemployment rate of population with local household registration was 5.1% and that of population with non-local household registration was 4.9%. The surveyed unemployment rate of population aged 16 to 24 was 14.3%, and that of population aged 25 to 59 was 4.4%. In December, the surveyed unemployment rate in 31 major cities was 5.1%. The employees of enterprises worked 47.8 hours per week on average. In 2021, the number of rural migrant workers reached 292.51 million, 6.91 million more than that of the previous year, or up by 2.4%. Specifically, local migrant workers totaled 120.79 million, up by 4.1%; migrant workers working away from their hometown totaled 171.72 million, up by 1.3%. The average monthly income of migrant workers was 4,432 yuan, up by 8.8% over the previous year.

Ninth, resident income grew basically in step with economic growth while the urban-rural per capita income ratio narrowed.

In 2021, the nationwide per capita disposable income of residents was 35,128 yuan, a nominal increase of 9.1% over that of the previous year and an average two-year nominal growth of 6.9%; the real growth after deducting price factors was 8.1%, and an average two-year growth of 5.1%, which was basically in step with the growth of the economy. In terms of permanent residence, the per capita disposable income of urban residents was 47,412 yuan, a nominal increase of 8.2% compared with the previous year and real growth of 7.1% after deducting price factors. That of rural households was 18,931 yuan, a nominal growth of 10.5% compared with the previous year and real growth of 9.7% after deducting price factors. The per capita disposable income of urban residents was 2.5 times that of rural households, 0.06 less than the ratio of the previous year. The median nationwide per capita disposable income was 29,975 yuan, a nominal growth of 8.8% over that of the previous year. Taking the per capita disposable income of nationwide residents by income quintile, that of the low-income group reached 8,333 yuan, the lower-middle-income group 18,446 yuan, the middle-income group 29,053 yuan, the upper-middle-income group 44,949 yuan, and the high-income group 85,836 yuan. In 2021, the nationwide per capita consumption expenditure was 24,100 yuan, a nominal increase of 13.6% over the previous year, and an average two-year nominal growth of 5.7%; the real growth was 12.6%, and an average two-year growth of 4% after deducting price factors.

Tenth, the total population increased and urbanization rates continued to grow.

By the end of 2021, China's population on the mainland was 1.4126 billion (not excluding residents of Hong Kong, Macao and Taiwan and foreigners living in the mainland's 31 provinces, autonomous regions and municipalities), an increase of 0.48 million over that at the end of the previous year. In 2021, the number of births was 10.62 million and the birth rate was 7.52 per thousand; the number of deaths was 10.14 million and the death rate 7.18 per thousand; the natural growth rate was 0.34 per thousand. In terms of gender, the male population was 723.11 million and the female population was 689.49 million; the sex ratio was 104.88 (the female is 100). In terms of age structures, the working-age population from 16 to 59 was 882.22 million, accounting for 62.5% of the total population; the population aged 60 and over was 267.36 million, accounting for 18.9% of the total population; the population aged 65 and over was 200.56 million, accounting for 14.2% of the total population. In terms of urban-rural structure, the permanent residents in urban areas were 914.25 million, an increase of 12.05 million over the end of the previous year; and the permanent residents in rural areas were 498.35 million, a decrease of 11.57 million. The urban population share in the total population (urbanization rate) was 64.72%, 0.83 percentage points higher than that at the end of the previous year. The population residing in areas other than their household registration places (refers to the population whose residence and household registration place are not in the same towns or streets and who have been away from their household registration place for over six months) reached 504.29 million, which was 11.53 million more than the previous year. Among them, the floating population stood at 384.67 million, or 8.85 million more than the previous year.

Generally speaking, in 2021, China sustained a continuous and steady recovery of the national economy and maintained a leading position in economic growth and epidemic prevention and control in the world, with major indicators reaching expected targets. However, we must be aware that the external environment is more complicated, severe and uncertain, and the domestic economy is under the pressure of demand contraction, supply shock and weakening expectations. At the next stage, we must continue to take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, and implement the guiding principles of the 19th CPC National Congress, the plenary sessions of the 19th Central Committee of the CPC and the Central Economic Work Conference. We must adhere to the general working guidelines of making progress while maintaining stability, fully and faithfully implement the new development philosophy on all fronts, accelerate the pace to foster a new development paradigm and promote high-quality development. We must coordinate the efforts of epidemic prevention and control as well as economic and social development, continue to ensure stability on six fronts and security in six areas, work hard to stabilize the macro-economy, keep the economy performing within a reasonable range, and ensure social stability so as to greet the opening of the 20th CPC National Congress with practical actions.

That concludes my introduction. Thank you.

Chen Wenjun:

Thank you, Mr. Ning. Now the floor is open for questions. Please identify the news outlet your work for before raising questions.

CCTV:

The year 2021 marks the beginning of the 14th Five-Year Plan. In 2021, China achieved remarkable achievements in coordinating economic development and pandemic prevention and control and maintained stable economic and social development. My questions are for Mr. Ning. What factors played important roles? What do you think of the economy in 2021? 

Ning Jizhe:

The year 2021 was a milestone in the history of our Party and our country and was a year of crucial importance for China's modernization progress. In 2021, we solemnly celebrated the centenary of the founding of the Communist Party of China. We realized the first centenary goal of building a moderately prosperous society in all respects through eliminating absolute poverty. We have embarked on a new journey towards the second centenary goal of making China into a great modern socialist country in all respects. In 2021, facing complex domestics and international landscapes and all kinds of risks and challenges, the CPC Central Committee with Comrade Xi Jinping at its core oversaw the general situation and responded with calm. Our country has been in the lead position in both economic development and Covid-19 response through concerted efforts across China, keeping economic performance within an appropriate range. The major tasks and targets of 2021 were completed. We have made new progress in building a new development paradigm and scored new achievements in high-quality development. The 14th Five-Year Plan was off to a good start. The achievements were mainly the six following aspects. 

First, China's economic growth has been in the lead worldwide, with notably increased economic strength. China's economic growth ranked among the top in major economies worldwide, with the GDP of 2021 growing by 8.1% year-on-year. Its GDP reached 114.4 trillion yuan, exceeding 110 trillion yuan. That was US$17.7 trillion at the yearly average exchange rate, which ranked second globally and was estimated to account for more than 18% of the global economy. The per capita GDP was 80,976 yuan and US$12,551, at the yearly average exchange rate exceeding US$12,000 . At the end of 2021, China's foreign exchange reserves stood at US$3.2502 trillion, the largest in the world. 

Second, the national economy has continued to recover, meeting all major projected goals. In March 2021, the Government Work Report passed by the Fourth Session of the 13th National People's Congress proposed major projected targets for economic and social development in 2021. According to the statistics, the economy grew quite fast. In 2021, the GDP growth rate was 8.1%, higher than the projected target of 6%. The economy increased by 18.3%, 7.9%, 4.9%, and 4.0% in the first, second, third, and fourth quarter, respectively, year-on-year, with an average two-year growth of 4.9%, 5.5%, 4.9%, and 5.2% respectively. The two-year average growth rate of the fourth quarter was higher than that of the third quarter, which demonstrated stable economic performance and employment. In 2021, 12.69 million urban jobs were added, meeting the expected target of more than 11 million. The surveyed urban unemployment rate was 5.1%, lower than the target of around 5.5%. The consumption price rose mildly. The CPI in 2021 increased by 0.9% year-on-year, lower than the target of around 3%.

A basic equilibrium in the balance of payments was maintained. The surplus of the imports and exports of goods expanded 20.4% year-on-year in 2021, achieving steady increases in both the volume and quality of imports and exports. By the end of 2021, the foreign exchange reserves had exceeded US$3.2 trillion for 8 consecutive months. The growth of resident income was basically in line with the economic expansion. The per capita disposable income of Chinese citizens rose 8.1% from the previous year and a two-year average growth of 5.1%, which kept pace with the economic growth, meeting the target of scoring a steady increase in personal income. The energy consumption per unit of GDP dropped. According to preliminary estimates, the energy consumption per unit of GDP in 2021 decreased by 2.7% year-on-year, very close to the target of around 3%. The grain output reached a record high. Last year's total grain output was 682.85 million tons, achieving the target of more than 650 million tons. 

Third, the innovation momentum has been intensified with the rapid growth of the industrial manufacturing industry. In 2021, the national spending on R&D increased by 14.2%, 4 percentage points higher than the growth rate last year, maintaining a two-digit growth since the 13th Five-Year Plan period (2016-2020). The spending on R&D accounted for 2.44% of the GDP, up 0.03 percentage points than last year. Specifically, the basic research spending grew by 15.6% year-on-year, accounting for 6.09% of the total R&D spending, up by 0.08 percentage points than last year. In 2021, the total value-added by industrial enterprises rose by 9.6%, 1.5 percentage points higher than the growth rate of GDP. Specifically, the value-added by the manufacturing industry increased by 9.8%, 0.2 percentage points higher than that of all industries. The equipment manufacturing industry above designated size surged 12.9%, 3.3 percentage points higher than all industries above designated size.

Fourth, foreign trade and investment have grown rapidly, and opening up has been continuously expanded. As a result, the volume and quality of trade goods have increased. In 2021, China's total goods imports and exports expanded 21.4% year-on-year to 39.1 trillion yuan, scoring a two-year average growth of 11.3%. Counted by US dollars, the trade volume was US$6.05 trillion, accounting for a larger proportion in the global market. The imports and exports of general trade made up 61.6% of the total trade volume, up by 1.6 percentage points year-on-year. Trade in services has continued to recover. From January to November 2021, the total trade in services increased by 14.7% year-on-year, with services exports up by 31.5%. The investment attracted set a new record. The actual utilized foreign capital in 2021 was 1.1494 trillion yuan, up by 14.9%. 

Fifth, the reform on the economic system has continued to deepen, further unleashing development vitality. Market entities increased a lot. Reforms to streamline administration, delegate powers, improve regulation, and upgrade services continued apace. At the end of 2021, the total number of market entities in China exceeded 150 million, with more than 40 million enterprises and more than 100 million self-employed businesses. Diverse forms of ownership have developed side by side. Among the industries above designated size in 2021, value-added by enterprises with state-held controlling stakes, corporate enterprises, private enterprises, and foreign, Hong Kong, Macao, and Taiwan invested enterprises increased by 8.0%, 9.8%, 10.2%, and 8.9%, respectively, all rising at a similar pace. Rapid growth has been made in new industries, new business forms, and new models. In 2021, the value-added by high-tech manufacturing enterprises above designated size increased by 18.2% year-on-year, 8.6 percentage points higher than that of the industries above designated size. The online retail sales of physical goods increased by 12%, accounting for 24.5% of the total retail sales of consumer goods.

Sixth, efforts to ensure people's livelihoods have been firm and effective, increasing people's sense of fulfillment. As a result, people's income has increased at a fast pace. In 2021, Chinese citizens' net income from wages and salaries, net business income, and net property income grew by 9.6%, 11.0%, and 10.2%, respectively. As a result, the urban-rural income gap has been narrowed. The urban-rural per capita disposable income ratio of 2021 was 2.5, which was 0.06 percentage points lower than 2020. The production and sales of basic consumption goods in 2021 have seen steady growth. The value-added by the consumer goods manufacturing industry above designated size increased by 9.8% year-on-year. The retail sales of grain, oil and foodstuff, beverages, and daily necessities by enterprises above designated size all registered a two-digit growth. The investment to improve living standards has expanded. The investment in social sectors increased by 10.7% year-on-year. Specifically, education and public health investment grew by 11.7% and 24.5%, respectively. Thank you. 

Phoenix TV:

What were the contribution rates of the fourth quarter's economic growth and the “troika” (investment, consumption and exports) to the overall economic growth of 2021? On the basis of the data, what progress has been made in the construction of a new development paradigm? In addition, in the face of the complex economic situation, how do you think the impetus of economic growth will shift? Thank you.

Ning Jizhe:

The impetus of economic growth can be measured from the perspective of supply, or in other words, the three industries. It can also be measured from the perspective of demand, or in other words, the “troika.” So, your question is very targeted. The year 2021 is the starting year for our country in forming a new development paradigm. In the face of multiple tests like the complex and severe international environment, and frequent and sporadic domestic outbreaks of the pandemic, China has taken advantage of its super large-scale market, continued to deepen reform and opening up, proactively boosted the domestic and global economy, and made strides toward establishing a new development paradigm. This was shown in four main aspects:

First, during the whole year, three key demands all made contributions to economic growth. In 2021, the final consumption expenditure, the gross capital formation, and the net export of commodities and services drove the economy to grow by 5.3, 1.1 and 1.7 percentage points, respectively, and their contribution rates to economic growth were 65.4%, 13.7% and 20.9%, respectively. In the fourth quarter, the final consumption expenditure, the gross capital formation, and the net export of commodities and services drove the economy to grow by 3.4, -0.5 and 1.0 percentage points, respectively, and their contribution rates to economic growth were 85.3%, -11.6% and 26.4%, respectively. Although the contribution rate of the gross capital formation to economic growth was negative, fixed assets investment rose after a fall in December. During the whole year, the planned gross investment of new projects grew by 3.3% year on year, rising consecutively in November and December with signs of rising from a fall.

Second, the principal role of domestic circulation was enhanced. We have further implemented the strategy of expanding domestic demand. The leading role of domestic circulation in economic development has been greatly enhanced. In 2021, the total retail sales of consumer goods in China exceeded 40 trillion yuan, up by 12.5% year on year. The fixed assets investment exceeded 50 trillion yuan, up by 4.9%. The contribution rate of domestic demand to economic growth reached 79.1%, growing by 4.4 percentage points compared with the previous year. Economic growth was mainly driven by domestic demand.

Third, domestic and international circulations reinforced each other. The advantage of a super large-scale market was displayed, and the expansion of domestic demand propelled imports. The advantages of complete industrial system and stable production capacity were given full play, and the expansion of external demand promoted exports. In 2021, China's total import and export volume reached a record high. Import and export volume grew by 21.5% and 21.2%, respectively, year on year. Both the domestic and external demands played important roles and interacted with each other.

Fourth, the cycle of production, distribution, circulation and consumption was improved. In the production link, the expansion of production laid a foundation for improving the cycle. In 2021, the added value of industrial enterprises with annual revenue of 20 million yuan or more grew by 9.6% year on year. Growth was seen in 95.1% of the industrial sector and 73.4% of products, respectively. In the distribution link, the growth of business income, salaries and profits were the main sources of the primary distribution. From January to November in 2021, the business income of 41 major industrial categories achieved growth year on year. Growth was seen in 100% of industries. The profits of 31 industries realized growth year on year. Growth was seen in over 80% of industries. The salaries of employees also increased. The revenue in national general public budget grew by 12.8% year on year, maintaining double-digit growth. In the circulation link, the smooth freight transport ensured the economic recovery and foreign trade. In 2021, China's freight transport volume and cargo throughput at ports increased by 12.4% and 6.8% over last year, respectively. In the consumption link, the expansion of employment and growth of incomes propped up the recovery in consumption growth. In 2021, China's per capita consumption expenditure grew by 12.6% in real terms year on year. Due to the impact of the year before last, the average growth rate of the past two years reached 4.0%.

In the face of the complex and severe economic situation, the fundamentals sustaining China's long-term economic growth and the advantages of forming a new development paradigm remain unchanged, and new drivers of economic growth will continue to emerge. In the next phase, the impetus of economic growth will come from not only the pull of the “troika,” but also the propelling of supply; not only the expansion of domestic demand, but also that of external demand; not only the increase of consumption, but also that of investment; and not only the promotion of reform, but also that of innovation. We have the confidence, strength, capacity and conditions to realize steady and sound economic development. Thank you.

Yicai:

In 2021, the growth of fixed assets investment was sluggish. This year, with the acceleration of the issue of special bonds and the launch of a batch of key projects, will the growth of investment pick up? Thank you.

Ning Jizhe: 

The fixed assets investment is one important carrier of the “troika” I mentioned just now. The statistics of fixed assets investment for the whole year were just released, and now I will elaborate on the overall investment situation.

Generally, investment maintained its recovery momentum in 2021. During the past year, the continuous expansion of investment scale and the improvement of the structure have played important roles in optimizing supply structure, enhancing supply quality, and reinforcing weak links.

First, the investment scale continued to expand. In 2021, the fixed assets investment (excluding rural households) exceeded 50 trillion yuan and reached 54.5 trillion yuan, up by 4.9% over last year, with an average growth rate of 3.9% in the past two years. The average two-year growth rate rose by 0.1 percentage point compared with the first three quarters.

Second, investment in the manufacturing industry improved. In 2021, investment in the manufacturing industry grew by 13.5% year on year, with the average two-year growth rate reaching 4.8%, 0.9 percentage point higher than that of the whole investment. Investment in technological upgrading in the manufacturing industry increased by 13.6% year on year, continuously higher than the general growth rate of manufacturing investment. 

Third, investment in the high-tech industries enjoyed good momentum. In 2021, investment in high-tech industries increased by 17.1% year on year, with the average two-year growth rate reaching 13.8%, 9.9 percentage points higher than that of the total investment.

Fourth, investment in the social domain grew swiftly. In 2021, the growth rate of investment in the social domain was 5.8 percentage points higher than that of the total investment. 

The investment growth trend in the next phase has attracted a lot of attention. Currently, the international environment is complicated and severe, and the pandemic continues to have great impact, hindering investment growth to some extent. However, from the perspective of China's development phase, there is potential, space and impetus for expanding effective investment.

First, investment in promoting development has great potential. China is still the world's largest developing country. The per capita GDP is less than one fifth of that of the United States and one third of that of Japan. The infrastructure capital stock per capita is only 20%-30% of that of developed countries. Promoting high-quality development and building a modern socialist country still requires the continuous expansion of effective investment.

Second, there is a broad investment space to make up for weaknesses. The issue of unbalanced and inadequate development is still prominent, and there is still a large gap between the development of urban and rural areas. Many weak links still exist in infrastructure and areas related to people's livelihoods. The per capita input for public facilities of farmers is only about one-fifth of that of urban residents. There is a broad investment space to make up for weaknesses.

Third, there has been sufficient motivation for innovation investment. With the increasing driving role of innovation, industrial upgrading remains a steady development. Enterprises have been continuously increasing innovation investment, boosting innovation development, and fostering a new development paradigm, which will be a huge investment push. This year, we will introduce a series of policies and measures which will be conducive to investment in manufacturing, R&D, and technological upgrading. Last year, investment in high-tech industries increased by 17.1% year on year. In terms of capital, China has a high total national savings rate, and social funds are generally adequate. China has also been able to provide good supporting conditions for production and construction. China has both the needs and favorable conditions for expanding effective investment.

Fourth, policies such as adopting an appropriate forward-thinking plan for infrastructure are gaining momentum. Since the second half of last year, the issuance of special bonds by local governments has been accelerated, and investment from the central government budget has also been accelerated. 102 key projects in the 14th Five-Year Plan have been launched continuously. We have launched projects concerning new infrastructure and new urbanization initiatives as well as major transportation and water conservancy projects in an orderly manner. Enhanced policy support, which includes fiscal and monetary investment, has been conducive to the steady recovery of fixed-asset investment. In terms of leading indicators for investment, from January to December 2021, 287,760 new projects were launched, 36,767 more than the period from January to November. The planned gross investment of new projects grew by 3.3% year on year, 0.6 percentage point faster than the growth rate of the January-November period, and has risen consecutively in the last two months. Since the beginning of this year, a batch of key projects have been launched in different regions as planned, and these projects come with the potential for investment growth. Thanks.

Economic Daily:

Hello, Mr. Ning, you have just introduced that China's GDP exceeded 110 trillion yuan in 2021, and its share in global GDP has continued to increase. The per capita GDP is projected to exceed $12,000, which is close to the World Bank's threshold for high-income countries. What does the National Bureau of Statistics say about this? What do these changes mean? Thanks.

Ning Jizhe:

China's GDP reached 110 trillion yuan, which is indeed a landmark event, and the per capita GDP has also increased accordingly. Last year, both the size of China's economy and its per capita level continued to grow. It means that China's comprehensive national strength, social productivity, and people's living standards have been further improved. It also means that China has a firmer foundation, better conditions, and stronger driving force for development and is contributing to the global development as well.

First, this means that China's comprehensive national strength has been further enhanced. Our economy has further expanded. In 2021, China's GDP exceeded 110 trillion yuan, ranking second in the world. Last year, nominal GDP rose from 101 trillion yuan to 114 trillion yuan, an increase of about 13 trillion yuan. This increase, converted at an average annual exchange rate, amounts to $2 trillion, which is equal to the annual economic aggregate of a quite large major economy. If the exchange rate factor was considered, the increase would be more than $2 trillion. According to the statistics released earlier, China's GDP is equal to $17.7 trillion this year, and it was $14.7 trillion last year. Due to the appreciation of the RMB last year, the calculated increment is $3 trillion. The total size of the economy and the amount of economic growth have not come easily. At the same time, the added values of the total industry and the manufacturing industry were 37.3 trillion yuan and 31.4 trillion yuan, respectively, ranking first in the world for more than 10 consecutive years. China's total trade in goods and foreign exchange reserves both rank first in the world. And there is no doubt that China ranks second in the areas of trade in services, outbound investment, and domestic consumption market, even though figures for several countries have not yet been made available. China's per capita GDP exceeded 80,000 yuan, which is equal to $12,551 at the average annual exchange rate. Although it has not yet reached the lower limit of the per capita level of high-income countries, it is approaching. In 2021, China exceeded the global average per capita GDP. According to preliminary estimates, the global average per capita GDP will be about $12,100, while China's is $12,500.

Second, this means that China's social productivity has further improved. The output of major industrial and agricultural products continued to rank among the top in the world. In 2021, China's total grain output exceeded 1.3 trillion jin (650 million metric tons). According to global statistics, China ranks first in total grain output in the world. The outputs of seed cotton, peanuts (one of the main oil crops), meat, tea, and fruit all rank first in the world. These outputs are real and comparable. In the past, grain was taken as the top priority in agriculture, and steel was taken as the top priority of industry. Now, the output of crude steel was 1.03 billion metric tons, and power generation reached 8.1 trillion kWh. Meanwhile, fertilizer output was 54.46 million metric tons, cloth output was 39.6 billion meters, and automobile output was 26.53 million. The output of microcomputer equipment was 470 million units, and the output of mobile phones was 1.66 billion units. These all rank first in the world. China also leads the world in the output of more than 220 major products, and in fact, it is more than this, and it indicates social productivity has increased. At the same time, China's scientific and technological strength has also improved significantly. Currently, the full-time equivalent of research and development personnel in China exceeds 5 million person-years. By the end of 2021, the number of in-force patents issued in China was 3.597 million, and the number of high-value invention patents per 10,000 people reached 7.5, an increase of 1.2 over the previous year.

Third, it also means the living standards of the Chinese people further improved. Employment continued to expand. In 2021, more than 12 million new jobs were created. Residents' income and consumption maintained rapid growth. China's per capita disposable income stood at 35,000 yuan in 2021, up 8.1% year on year in real terms. The nationwide per capita consumption expenditure reached 24,000 yuan, up 12.6% in real terms. The Engel coefficient, which reflects the consumption structure, states that the percentage of income allocated for food expenditure decreases as income rises. In 2021, the Engel coefficient was 29.8%, 0.4 percentage point lower than the previous year.

Fourth, it means that China's international influence has further expanded. China's economy has maintained rapid growth, which has driven global economic growth. In 2020, the world economy saw negative growth, while China's economy grew positively, playing a significant role in driving economic recovery globally. In 2021, China's contribution rate to the world's GDP growth was expected to reach about 25%, making it an important force leading the world's economic recovery. This can only be forecast because data from around the world has not yet been collected. At the same time, China's coordinated fight against the epidemic has made a huge contribution to the global anti-pandemic development. Over the past year or so, sticking to the approach of “preventing the coronavirus from entering the country and stem its domestic resurgence,” China has taken the lead in bringing the epidemic under control on its home soil, ensuring the health and safety of its 1.4 billion people. This in itself is a major contribution to the world's anti-pandemic efforts. By the end of last year, China had provided 372 billion masks, more than 4.2 billion protective suits, 8.4 billion test reagents, and more than 2 billion doses of COVID-19 vaccine to more than 120 countries and international organizations, making China the largest supplier of COVID-19 vaccines.

At the same time, we should be soberly aware that China remains a upper-middle-income country and its per capita GDP has not reached the threshold for high-income countries, and there is still a big gap between China and developed countries. China remains the largest developing country in the world. Its basic national condition remains unchanged, and it will remain in the primary stage of socialism for a long time. Right now, China is facing the triple pressures of shrinking demand, supply shock, and weakening expectations. Based on the new stage of development, we need to fully, accurately, and comprehensively implement the new vision of development. We need to work hard and tirelessly to speed up the building of a new development paradigm, keep the economy operating within a proper range, promote high-quality development, and further enhance China's overall national strength, social productivity, and people's living standards. Thank you.

CNBC:

I have two questions. The first one is about employment. Are there any data where we can see if the proportion of young people in urban and rural areas has changed? And the second: In the growth of the secondary and tertiary industries in the fourth quarter, there are some obvious differences from that of the whole of last year. For example, the secondary industry grew by 2.5% in the fourth quarter and 8.2% for the whole year. The tertiary industry grew by 4.6% in the fourth quarter and 8.2% for the whole year. What are the main reasons for this gap? With the enhanced epidemic prevention measures in January, are there any insights into how we can predict economic growth this year? Thank you.

Ning Jizhe:

I will focus on the first of your two questions. The first one is about industry and industrial employment. You also mentioned the employment in urban and rural areas. In the data I just released, there is already information about newly-created jobs in urban areas. The national surveyed urban unemployment rate and the surveyed unemployment rate for big cities were also released. Your question focuses on the performance of certain industries. The situation in some of the industries might be different. It is fair to say that in the past year, the increase of new urban employment and the surveyed unemployment rate remained stable in China. Both have achieved their expected goals, or we can say the surveyed unemployment rate is lower than expected. The main reasons are as follows:

First, the continuous recovery and development of the economy has created new jobs and laid the foundation for employment. China's GDP grew by 8.1% in 2021. The economic output in the fourth quarter slowed to 4% year-on-year, but in terms of the two-year average, though the GDP in the fourth quarter of 2020 grew relatively faster at 6.4%, after been revising down from the previous 6.5%, the two-year average growth in the fourth quarter of 2021 registered 5.2%, 0.3 percentage points faster than the 4.9% in the third quarter. The steady economic growth has provided an important foundation for employment. When we observe economic growth, we should look not only at the year-on-year data but also the month-on-month data and the average data of two years. In fact, it also offered some tips to your second question.

Second, the policy of prioritizing employment has produced remarkable results. A series of policies that were designed to help enterprises and stabilize jobs have played a positive role in the employment of college graduates, rural migrant workers, and other key groups. The total number of migrant workers in 2021 was 292.51 million, an increase of 6.91 million over 2020. The number in 2020 is lower than that in 2019. The number in 2021 has already exceeded the level of 2019 before the COVID-19 epidemic. Please pay attention to this. At the same time, the surveyed unemployment rate of migrant agricultural residents has remained at a low of less than 5% since the second half of last year.

Third, new forms of employment are flourishing. China's new industries, new forms of business, and new models continued to develop rapidly last year, with various flexible employment models absorbing a lot of the labor force. At present, there are about 200 million people working flexible jobs in China, with food deliverymen accounting for about 4 million and online broadcasters and related employees accounting for more than 1.6 million on some platforms, nearly three times that of last year.

Fourth, employment in some industries increased considerably. Although the number of employees in some service industries, manufacturing, and construction has dropped, the number in other industries has increased, underpinning the overall stability of employment. From November to December in 2021, the number of workers in the wholesale and retail industry; transportation, warehousing, and postal industries; residential service industry; and commercial service industry rose by 1.81 million, 410,000, 330,000, and 280,000, respectively, which has offset the declines in employment in other sectors.

Fifth, the surveyed unemployment rate shows that some people have temporarily withdrawn from the labor market. While the surveyed urban unemployment rate focuses on the urban labor market, we have also carried out surveys in rural areas. The national surveyed unemployment rate is generally lower than that of urban areas. However, from the perspective of urban and rural areas, if a migrant worker returns to the countryside, then the person no longer belongs to the urban labor market, and should be included in the labor force survey in the countryside. In addition, from the perspective of the city itself, some people are counted as “not in the labor force” due to reasons like seasonal business closures, or to take care of their families, health, education, and training. For example, workers in agriculture or construction will temporarily withdraw from the labor force in winter.

Your second question is about the gap between the service sector and the industrial sector. Thanks to a series of policies and measures supporting the industrial sector as well as the joint efforts of enterprises, the industrial sector and manufacturing sector maintained recovery momentum in the fourth quarter. You just mentioned statistics of the service sector. The service sector, which contains many industries, grew rapidly in general. The annual growth rate of both the service sector and industrial sector reached 8.2%. The impact of the service sector on employment should be reviewed based on different industries. It has exerted a greater impact on some industries, such as high-contact service industries and those with a high-density work environment, and has had a lesser impact on industries supporting freight transport, logistics, and industrial chains. So we must stabilize and promote the growth of those industries that ensure normal life and work, and follow routine, targeted COVID-19 protocols to ensure a good environment for economic and social development.  

Because this year's first-quarter statistics are expected to be released in April, we have to take some targeted measures according to the situation last year to ensure employment and reasonable economic growth. Thank you. 

Reuters:

Would you please preview the development prospects in 2022 and what are the main downward pressures and risks of China's economic growth this year? Will China scale up stabilizing economic growth to keep the major economic indicators within an appropriate range? Will China relax its policies to regulate and control the real estate market? Thank you.

Ning Jizhe:

You have raised several questions. The first two are relatively similar and involve this year's economic growth. This year marks the gradual recovery of China's economy, but the current external environment is grave and made complex by many uncertainties, and as you can see, domestic development is also under pressure. Despite these risks and challenges, taken overall, the momentum of sustained economic recovery, factors that keep the major economic indicators within an appropriate range, and conditions that support high-quality development all remain unchanged. The economy is expected to make progress while maintaining stability throughout the entire year.

First, China has been at the global forefront in terms of regularized pandemic control and made notable progress in coordinating epidemic control with economic and social development. The order of life and work is generally stable in the country, which has promoted sustained economic growth and ensured overall social stability. Up to now, China has reported the smallest number of confirmed COVID-19 cases and the lowest death toll among the world's major economies. China has administered 2.93 billion doses of COVID-19 vaccines, and a total of 1.22 billion people have been fully vaccinated – the most among the major economies of the world – providing a general line of defense for economic growth. 

Second, China's industrial supply system is complete. As we have mentioned many times, our country features every industrial category, with a complete industrial system and supporting system. In addition, the industrial and supply chains are resilient and can quickly adapt to the changes in demands of the market and thus boost the increase in supply. For example, the market suffered from a shortage of chips and containers last year. In addition to imports, China's own output of integrated circuits increased by 33.3%, and thus quickly increased supply. Facing a shortage of metal containers, China's output of containers grew 110.6%, allowing the shortage of chips and containers to be slightly alleviated. Amid the pandemic, the demand for office supplies for working at home boomed domestically and abroad. Some products might not otherwise sell well, but they have become popular after people needed them to work at home. The output of microcomputer equipment has not risen at such a fast rate for a long time, increasing by 22.3% in 2021. Meanwhile, the total output of smartphones last year was 1.7 billion, increasing by 9%, all of which indicates that there is a sizable demand. Working at home has also boosted the demand for eating at home, with fresh and frozen meat output increasing 24.5% and beverage output increasing 12%. All these examples indicate that we can produce what the market needs. It is the same for this year. As long as the media reports the world's demands, we will have market entities make efforts to produce and provide supplies, which will naturally promote economic growth, expand employment, and increase income. 

Third, the space for growth is large for China's super-large scale market. Our country has more than 1.4 billion people, with more than 400 million middle-income earners, which is the foundation for us to cope with various risks and challenges and build a strong domestic market. Due to the impact of the pandemic, retail sales of consumer goods decreased in 2020. But it grew back in 2021, reaching 44 trillion yuan. Although the growth rate was relatively low, it was not easy to achieve. The 44 trillion yuan in consumer goods sales represents a new milestone. The total investment was huge – the contribution rate of domestic demand to economic growth was 79.1% for the whole year – and final consumption was 65.4%, which highlights the significant role of the domestic market. 

Fourth, we also have the dividends of reform and opening-up. Diverse forms of ownership develop together. According to statistics, the value-added industrial growth of private enterprises scored double-digit growth. China's imports and exports to its major trade partners maintained rapid growth last year, according to statistics released by the General Administration of Customs a few days ago. Meanwhile, China is a major trade partner of more than 120 countries around the world. Up to the end of last year, China has signed BRI cooperation documents with 145 countries, and its total import and export volume with countries involved in the Belt and Road rose by more than 20%.

Fifth, China has outstanding economic governance capability. In recent years, China has continued to make fresh innovations in macro-control. We have enhanced targeted, well-timed, and precise regulation on the basis of range-based control, accumulating rich regulation experience and contributing to stable economic development. Since 2020, facing the spread of pandemic around the world, we have maintained strategic focus. Instead of resorting to massive stimulus measures, we put into place assistance policies based on market entities, which has promoted economic recovery and achieved remarkable results. At present, China's inflation rate and government debt are low. There is space for monetary policies, and we have at our disposal a fairly substantial toolkit for macro-control, which enables China to maintain stable economic performance.

Regarding quarterly growth, first, let us review the quarterly data over the past year. Just now, I announced the year-on-year growth rate and two-year average growth rate. Now, let us look at the quarter-on-quarter growth rate, that is, comparing each quarter with the previous quarter. The first quarter of 2021 saw a 0.3% increase in economic aggregate, rising a little compared with the fourth quarter of 2020; the second quarter of 2021 grew 1.3% from the first; the third quarter rose 0.7% compared with the second; and the fourth quarter increased 1.6% from the third. These figures show that China's economic aggregate kept expanding quarterly last year. The fourth quarter saw an increase of 3.43 trillion yuan over the third, with the quarter-on-quarter growth rate up 0.9 percentage point. Therefore, the Chinese economy is showing an increasingly stable development momentum.

Issues in the real estate industry are also quite important. The just-released data shows that our real estate market was generally stable in 2021. We adhered to the principle that housing is for living in rather than for speculation and actively implemented a long-term mechanism. We did not take real estate as a tool and means to stimulate short-term economic growth but made efforts to stabilize the price of land and houses, and the expectations, actively preventing potential risks. The real estate market remained generally stable.

First, real estate sales kept rising, and real estate transactions logged an overall increase. In 2021, the floor area of sold commercial housing nationwide reached 1.8 billion square meters, up 1.9% compared with the previous year, and the sales hit 18.19 trillion yuan, increasing 4.8% over the previous year.

Second, investment in real estate kept expanding. In 2021, the investment in real estate development was 14.76 trillion yuan, up 4.4% year on year, and residential investment rose 6.4%, 2 percentage points higher than the total investment in the industry. 

Third, real estate prices were generally stable. In December 2021, among 70 large and medium-sized cities, the prices of newly built commercial housing in first-tier, second-tier, and third-tier cities rose 4.4%, 2.8%, and 0.9%, respectively, year on year. 

Fourth, the development of government-subsidized housing continued to be pushed forward. From January to November 2021, China renovated about 1.94 million housing units in rundown urban areas and began the construction of 86,000 public rental housing units, with an investment of 913.1 billion yuan and 17.8 billion yuan, respectively.

The statistics showed that investment in real estate is expected to see stable and healthy development in 2022. Some of the just-released data is related to demand in the industry, which would be steadily unleashed. 

First, China's urbanization rate of permanent residents continued to increase last year, but the country is still in the development stage of urbanization. At the end of 2021, permanent residents in urban areas increased by 12.05 million year on year. Those people needed housing in cities while mostly maintaining their rural homes. In particular, the migrant population — defined by people who move a relatively long distance — reached 384.67 million, 8.85 million more than the previous year. The population who resided in areas other than where their household registration was registered was larger than the migrant population. All of these factors have brought about a new demand for housing. With the advancement of a new model of urbanization, residents' desire for normal housing consumption will turn into a reality. Then, with the support of financial and other policies, the urban housing needs, especially for improved housing, will continue to be released.

Moreover, the market supply of the real estate industry is gradually optimizing. With the steady advancement of real estate regulation policies, real estate developing enterprises maintain sound growth, and the industry is heading in an intensive, highly-efficient, long-term, healthy, and stable direction. As we see, the 2021 data showed that the added value of the real estate industry saw a negative growth in the fourth quarter, but the total added value reached 7.76 trillion yuan for the whole year. The added value of the construction industry amounted to 8 trillion yuan. The two together accounted for 14% of the country's GDP. We encouraged both the rental and purchase of housing, accelerated the development of the long-term rental housing market, promoted the development of government-subsidized housing, and ensured that the commercial housing market could better meet the rational demand of house purchasers. In this way, we are speeding up the establishment of a multi-tiered housing system including commercial housing and government-subsidized housing. The real estate market supply pattern will also be gradually put in place, featuring multi-suppliers, multi-channel guarantee, and a two-pronged approach of rental and commercial housing. From January to November 2021, a total of 120.5 billion yuan was invested to build 860,000 rental housing units across the country. 

Third, city-specific policies have helped promote a virtuous circle for the real estate industry. It is very important to develop the real estate industry according to local conditions. We have always kept in mind the principle that houses are for living in, not for speculation, and have maintained a stable housing price, stable land price, and stable expectations. To regulate the real estate market, we have implemented various policies in different cities. This is beneficial to both the smooth operation of the real estate market and ensuring the fulfillment of people's normal housing needs. In recent years, we have supported the renovation of buildings where middle- and low-income groups lived as well as old residential communities, boosting the healthy development of the industry. From January to November 2021, we began the renovation of 54,700 old urban residential communities, exceeding the annual targets.

Lastly, the growth of the real estate industry has driven the economic growth overall. In 2021, the added value of the real estate industry rose 5.2% year on year, adding 0.4 percentage point to overall economic growth; the added value of the construction industry increased 2.1%, boosting overall economic growth by 0.2 percentage point. From the perspective of industry expectations, in December 2021, the commercial activity index of the construction industry was 56.3%, maintaining a relatively high range of over 55% for 10 consecutive months. As the long-term mechanism of the real estate industry keeps improving and the effects of city-specific policies continue to emerge, the industry is expected to maintain a smooth running in 2022. Thank you!

ThePaper.cn:

In 2021, the number of newborns nationwide hit a new low for recent years. How will this affect China's economy? When will China enter a negative population growth phase? In addition, how will the three-child policy impact future population growth? Thank you.

Ning Jizhe:

At the request of the SCIO, the National Bureau of Statistics and the seventh national census office released census data last year. Based on the data I just presented, your questions make a lot of sense. In 2021, China's population maintained steady growth. 

First, the total population continued to grow. By the end of 2021, China had a population of 1.413 billion. The number of births totaled 10.62 million, and the number of deaths reached 10 million for the first time, registering a net increase of 480,000 and a natural growth rate of 0.34 per thousand.  

Second, the working-age population remained relatively stable. By the end of 2021, the working-age population, or those between 16 and 59 was 882 million, accounting for 62.5% of the total. The population aged 60 and over was 267 million, among whom 200 million were aged 65 and above, making up 18.9% and 14.2%, respectively, of the total population.  

Third, the urban population increased considerably. By the end of 2021, permanent residents in urban areas reached 914 million, an increase of more than 12 million over the end of the previous year, while permanent residents in rural areas were nearly 500 million. The urbanization rate of permanent residents registered 64.72%, 0.83 percentage points higher than the end of the previous year. 

Fourth, the floating population grew significantly. By the end of 2021, the population who resided in areas other than their household registration reached 504 million, which was 11.53 million more than the previous year. Specifically, the floating population stood at 385 million, 8.85 million more than the previous year.

The birth decline you are concerned about resulted from multiple factors. The slowdown in population growth is an objective result stemming from China's economy, especially industrialization and urbanization, developing into a certain stage. Aging and fewer children are also common problems faced by developed countries and even some emerging economies. In 2021, China had fewer births than in the previous year, which led to a lower birth rate. The main reasons for this are as follows:

First, the number of women of childbearing age continued to decrease. In 2021, there were about 5 million fewer women of childbearing age – from 15 to 49 – than in the previous year; the number of those in their prime of childbearing age – from 21 to 35 – dropped by about 3 million.

Second, the fertility rate continued to fall. In recent years, shifting thoughts about childbearing and people delaying marriage and starting a family, coupled with factors involving the cost of childbearing, have made young people less willing to have a baby.  

Third, to some extent, COVID-19 has also delayed the marriage and childbearing plans of young people. Multiple international studies found that fertility rates have decreased in many countries and regions since the outbreak of the pandemic. In 2020, both Japan and South Korea saw fewer births than in the previous year.  

China's population will remain above 1.4 billion for some time to come.  

First, the total number of women of childbearing age is relatively large. China has a large population base with more than 300 million women of childbearing age, and we are able to sustain over 10 million births every year. The total population will maintain a certain level of growth.

Second, the three-child policy will gradually generate effects. Over the past decade, policies including the two-child policy for couples in which either the husband or wife is from a single-child family, and the universal two-child policy have positively increased births. According to the seventh national census data, the number of children aged 0-14 in 2020 was over 30 million more than that in 2010, and the proportion of children rose by 1.35 percentage points, which was mainly driven by the two "two-child" polices. Among the births, the proportion of second children rose from about 30% in 2013 to about 43% in 2021. In May 2021, the Political Bureau of the CPC Central Committee proposed further optimizing the birth policy by allowing a couple to have three children and adopting supporting measures. Specific implementation schemes have been formulated in localities and the policy will gradually play its role. 

Third, life expectancy has continued to rise. Significant progress in medical and health conditions, as well as continuous improvements to living standards, have led to a consistently rising life expectancy, and the fact that the number of deaths in China has been less than the number of births helps the total population maintain its growth trend. The potential of some delayed births will continue to be released in the future. All these factors will play a positive role in keeping the total population basically stable. Thank you.  

Chen Wenjun:  

The press conference has been going on for 85 minutes and the journalists are still eager to raise questions. We will take the last three questions.  

CNR:

We have also noted that China's grain output hit a new high in 2021. Will China's agricultural production be consolidated amid new developments in 2022 and what are the main reasons? In addition, we also see that international grain prices rose sharply in 2021 and many countries faced significant inflation. How has China's food security been affected? Can we guarantee the food supply? Thank you. 

Ning Jizhe:

Agriculture is the foundation of every industry and food is the basis of our survival. The statistics just released show that grain output in 2021 reached a new level and we had a bumper harvest of agricultural production. Regarding the complicated and changing situation in 2022, such as the rising international prices of some grains you mentioned just now, relevant departments have conducted careful analyses in this regard, the CPC Central Committee has made clear arrangements, and the State Council has introduced related policies as well. As long as the Party continues to prioritize addressing issues related to agriculture, rural areas and rural people, as well as gaining control over our own food supply, we can consolidate the fundamental position of agriculture and ensure the food supply.  

In 2021, China's grain and agricultural production gained momentum and the features were as follows:  

First, the output of summer grain, early rice and autumn grain increased to 291.9 billion jin (1 kg=2 jin), 56 billion jin and 1,017.8 billion jin, respectively, up 6.2 billion jin, 1.4 billion jin and 19.1 billion jin. This helped total annual grain output reach 1,365.7 billion jin, an increase of 26.7 billion jin over the previous year.  

Second, the yield of rice, wheat, corn and tuber rose to 425.7 billion jin, 273.9 billion jin, 545.1 billion jin and 60.9 billion jin, respectively, up 2 billion jin, 5.4 billion jin, 23.8 billion jin and 1.1 billion jin over the previous year. 

Third, both sown areas and per unit yields increased. China's total sown grain area hit 1.764 billion mu (117.6 million hectares) in 2021, an increase of 12.95 million mu over the previous year, signaling two consecutive years of growth. Per unit yields of grain reached 387 kilograms per mu, an increase of 4.8 kilograms over the previous year, up 1.2% year on year.

Fourth, the primary, secondary and tertiary industries in rural areas as well as the industries of farming, forestry, animal husbandry and fishery were comprehensively developed. In 2021, the value added from farming, forestry, animal husbandry and fishery industries reached 8.7 trillion yuan, up 7.1% year on year. The National Bureau of Statistics and the Ministry of Agriculture and Rural Affairs released the first set of statistics for value added from agriculture and related industries. According to the data, in 2020, the value added of agriculture and related industries hit 16.69 trillion yuan, accounting for 16.47% of the national GDP. The figure is nearly twice that of the farming, forestry, animal husbandry and fishery industries. Many enterprises representing secondary and tertiary industries provide services directly to the agricultural sector. For instance, specialized plant protection services and seed services have been categorized in the service industry. Therefore, we decided to work with the Ministry of Agriculture and Rural Affairs to conduct a relevant statistical monitoring project.

This year's grain supplies can be guaranteed, based on the following factors.

First, successive years of increased production have laid a solid foundation. We have seen bumper grain harvests for 18 years in a row. The annual total grain output exceeded 500 billion kg, 550 billion kg, and 600 billion kg between 2007 and 2009, 2010 and 2011, and 2012 and 2014, respectively. This figure has remained above 650 billion kg for seven consecutive years beginning 2015, ensuring basic supplies for the grain market.

Second, we have an adequate stock of grain. At present, the country has sufficient grain reserves, with the two major staples of wheat and rice accounting for more than 70% of the total inventory. The stock of wheat can meet consumption demands for a year and a half. As the inventory of commodities noticeably grew, the stock of wheat and rice increased by more than 50% year on year.

Third, the sown area has likewise expanded in consecutive years. As part of the efforts to enlarge acreage, we have implemented stringent measures to protect farmland and safeguard the "red line" of 1.8 billion mu (120 million hectares) of farmland, strengthened control and regulation of purposes for arable land, and curbed non-agricultural or non-grain-related use of farmland. The sown area of grain across the country in 2021 went up by 0.7% compared to 2020, signaling two consecutive years of growth. In 2020, the multiple cropping index was 1.31. As the double cropping system keeps improving, the efficient utilization of farmland has increased accordingly.

Fourth, per unit yield enjoy huge potential. Although there is still some way to go compared with agriculturally advanced countries, the constant development of agricultural technologies represented by breeding techniques means there is enormous potential for China to increase its per unit yield. According to the survey conducted in 2019, farmland with medium- and low-yield accounted for more than two-thirds of the total. By implementing a strategy of sustainable farmland use and innovative application of agricultural technology, promoting the transformation of farmland with medium- and low-yield, accelerating the cultivation of high-quality farmland and stepping up efforts to develop protected agriculture, our per unit yield will enjoy even greater potential.   

Fifth, we have established solid policy mechanisms. The central rural work conference has affirmed the active role of the system in which both CPC committees and governments assume responsibility for safeguarding grain security, and emphasized the importance of ensuring acreage and output in main grain producing and marketing areas,, as well as areas with a balance between production and marketing. With more agricultural-specific policies delivered, farmers are growing more enthusiastic about production. Noticeably, these efforts will help us better respond to various risks and changes at home and abroad. International commodity prices will affect China's domestic markets in the form of imported inflation through the import and export of grain and other raw materials. Additionally, global natural disasters will impact the output, prices and markets as well. The top priority is to run our own affairs well, hold our rice bowls firmly in our own hands and take concrete measures to ensure food security. Thank you.

China Daily:

What were the new progress and breakthroughs in China's high-quality development for 2021? What aspects should be given more attention when pursuing high-quality development this year? And what about coordinating the relationship between the stable operation of the macro-economy and high-quality development? Thank you.

Ning Jizhe:

High-quality development is a prominent feature of China's 14th Five-Year Plan. In the past year, all regions and departments across the country thoroughly implemented the new development philosophy and promoted the stability and recovery of the economy while stepping up efforts to deepen reforms, expand opening-up, encourage innovation and accelerate reforms in quality, efficiency and drivers. We have made new achievements in high-quality development which were mainly demonstrated in the following five aspects.

First, innovation-driven development yielded new results. High-tech industries rapidly developed. In 2021, the value added from pharmaceutical, aerospace and equipment manufacturing industries, as well as electronic and communication device manufacturing, and computer and office equipment manufacturing industries above the designated size grew by 24.7%, 17%, 18.3% and 18% from the previous year, respectively. All of the above are high-tech industrial manufacturing industries. The valued added of information transmission, software and information technology services industries increased 17.2% year on year. China continued to enhance its national strategic strength in science and technology, witnessing the successful launch of Tianwen 1 Mars probe, the completion of Shenzhou 12 and Shenzhou 13, the operation of the national space laboratory, and other missions accomplished., 

Second, the coordinated development has made new progress. Industrial structures continued adjusting and optimizing. Over the past year, there were two important figures. In 2021, the value added of the manufacturing industry accounted for 27.4% of China's GDP, an increase of 1.1 percentage points from the previous year. At the same time, the value added of the service industry accounted for 53.3% of the national GDP, with its contribution rate to economic growth reaching 54.9%, 16.5 percentage points higher than the secondary industry. It's not an easy target for manufacturing and service industries to achieve. The demand structure has steadily improved. In 2021, the domestic demand's contribution rate to economic growth was close to 80%, signaling a growth of 4.4 percentage points over the previous year. The urbanization level has constantly improved. At the end of 2021, the urbanization rate among permanent resident populations grew by 0.83 percentage point compared to the same period of 2020.

Third, green and low-carbon development has made new achievements. We have made solid progress in energy conservation. In 2021, China's energy consumption per unit GDP dropped by 2.7% from the previous year, a big step forward compared to 2020. The statistic in 2020 remained the same as the previous year since the economy was heavily hampered by the epidemic. Clean energy consumption developed rapidly. According to preliminary calculation, the consumption of clean energies such as natural gas, hydropower, nuclear, wind, and solar accounted for 25.3% of the total energy consumption, one percentage point higher than the previous year. The output of green products has seen rapid growth as well. In 2021, the output of new energy vehicles and solar batteries grew by 145.6% and 42.1% compared to 2020, respectively. All of the figures listed above are extraordinary and suggest that the market enjoys tremendous prospects. The air quality constantly improved as well.

Fourth, we have drawn momentum from opening up to promote high-quality development and realize new breakthroughs. In the past year, China's total import and export of goods increased by 30% to 6 trillion U.S. dollars for the first time, hitting a new high. In addition, the growth rate also reached a record high since 2011; actualized use of foreign investment reached 1.1 trillion yuan, and China's trade volume with economies involved in the Belt and Road Initiative reached 11.6 trillion yuan; and the number of China-Europe freight train trips surged by 22% year on year to 15,000. In particular, at the beginning of this year, the Regional Comprehensive Economic Partnership (RCEP) officially entered into force, marking the largest free trade zone by far in terms of participating population, trade volume, and development potential. It is certain to promote the development of foreign trade, mutual investment, international trade, and international investment.

Fifth, new progress has been made in sharing the results of development. The income of urban and rural residents continued to grow. In 2021, the per capita disposable income of urban residents rose by 7.1% in real terms, and the per capita disposable income of rural residents rose by 9.7% in real terms. Spending on people's well-being also increased. From January to November, among the expenditure in the national general public budget, expenditures on housing security, education, social security and employment increased by 7.4%, 5.1% and 4.9% year-on-year, respectively.

At present, China's economy has shifted away from high-speed growth to high-quality development, and high-quality development is the theme for China's economic and social development in the 14th Five-Year Plan (2021-2025) period. To promote high-quality development, we must follow the general principle of pursuing progress while ensuring stability, focus on development as the top priority, promote reform and innovation, and pursue supply-side structural reform as our main task. Now, it is necessary to put stable growth in a prominent position, see that the economy operates within an appropriate range, maintain macroeconomic stability, promote high-quality development and the stable operation of the national economy at the same time, and coordinate the reasonable economic growth in volume and stable improvement in quality to ensure stable, sustained, and sound development of China's economy. Thank you. 

Cover News:

Increasing residents' income is an important part of securing people's livelihood. In 2021, what were the features of residents' income growth? Were the income gaps among different groups narrowed? What problems are now left to be resolved? Next, in what areas should we step up our efforts? Thank you. 

Ning Jizhe:

In 2021, as China's economy continued to recover, the employment situation was generally stable, the business efficiency of enterprises was improved, and people's basic living needs were effectively secured. All of these promoted the rebound of residents' income and narrowed the income gap. Details are mainly in the following aspects:

First, residents' income grew generally at the same pace as the economic growth. In 2021, the nationwide per capita disposable income of residents was 35,128 yuan, a nominal increase of 9.1% over that of the previous year. The real growth after deducting price factors was 8.1%, an average two-year growth of 5.1%, which was generally at the same pace as the growth of the economy.

Second, all types of incomes achieved overall growth. In 2021, driven by factors such as the deepening reforms to streamline administration and delegate power, improve regulation, and upgrade services and scaled efforts in helping businesses to get through challenges, the per capita net operating income of residents grew the fastest among all types of incomes, with a nominal increase of 11% over the previous year. This marks a change in the operating income of the previous year when COVID-19 took a higher toll on the growth of residents' net income. The policy of reducing burdens, stabilizing jobs, and expanding employment continued in the past year, and the targeted employment assistance for key groups was implemented, which boosted the income growth, with the per capita salary-based incomes of residents up 9.6% in nominal terms over the previous year, and the average monthly income of migrant workers up 8.8%. With the deepening of reforms in the capital market, market-based interest rate, and housing rental market, the per capita net property income of residents increased by 10.2% over the previous year. As the country secured people's livelihoods, with pension benefits being paid on time and in full, and efforts to provide temporary assistance being accelerated, residents' per capita net transfer income increased by 5.8% in nominal terms over the previous year, with an average two-year growth of 7.2%. All types of incomes rose across the board.

Third, the income gap between urban and rural residents continued to narrow. With the deepening of rural vitalization and a focus on agriculture, the income growth among rural residents was significantly faster than that of urban residents. In 2021, the nominal growth and real growth of the per capita disposable income of rural residents stood at 10.5% and 9.7%, respectively, both 2 percentage points faster than that of urban residents. Meanwhile, the per capita disposable income ratio of urban and rural residents was 2.5, down 0.06 percentage point from the previous year. The gap has continued to narrow over the years.

Fourth, the income of residents in the central and western regions grew at a faster pace. As the country implemented major regional strategies and coordinated development strategies, income growth of residents in the central and western regions has been faster than the average rate of the country. In 2021, the per capita disposable income of residents in the central region rose by 9.2%, and that of residents in the western region rose by 9.4%, 0.1 and 0.3 percentage point faster than the national average.

Fifth, the household income of middle- and low-income residents grew faster than that of the whole population. Speaking in terms of China's five income bands, in 2021, the per capita disposable income of people in the lower-income bracket (accounting for 20% of the total population) and in the lower-middle-income bracket (accounting for 20% of the total population) increased by 9.8% over the previous year. The growth rate of the per capita disposable income of the 40% least-wealthy residents was 0.7 percentage point faster than the national average. The per capita disposable income of people in the middle-income bracket (accounting for 20% of the total population) increased by 10.7%, 1.6 percentage points faster than the national average growth rate.

The income issues you are concerned about can be illustrated by specific figures. At the same time, we are soberly aware of the fact that the current downward pressure on China's economy is still relatively large, and the growth of residents' employment and income remains restricted. Though the income distribution gap between urban and rural areas, among regions, and different groups narrowed last year, the overall gap still exists. Next, we will focus on development as the top priority, pursue the people-centered development philosophy, advocate an employment-first strategy, and launch measures to promote income growth. We will also build a basic institution for the coordinated arrangement of primary distribution, redistribution, and third distribution; continue to equalize access to basic public services; gradually narrow the income distribution gap; and take solid steps to promote common prosperity. Thank you.

Chen Wenjun:

Thank you, Mr. Ning, and thanks to friends from the media. Today's press conference concludes here. Goodbye!

Translated and edited by Liu Jianing, Liu Qiang, Mi Xingang, Chen Xia, Yan Xiaoqing, Huang Shan, Xiang Bin, Li Huiru, Yang Xi, Zhang Rui, Zhang Tingting, Wang Wei, Xu Xiaoxuan, Qin Qi, Zhang Junmian, Wang Qian, Zhang Liying, Yuan Fang, Zhu Bochen, Wang Yiming, David Ball, Jay Birbeck, Drew Pittock and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speaker:

Li Kuiwen, spokesperson of the General Administration of Customs (GACC) and director general of the GACC's Department of Statistics & Analysis

Chairperson:

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

Date:

Jan. 14, 2022

Xing Huina:

Ladies and gentlemen, good morning! Welcome to this press conference held by the State Council Information Office (SCIO). The SCIO will be hosting a series of press conferences on China's annual economic data. The first press conference being held today will focus on China's import and export performance in 2021. We are delighted to be joined by Mr. Li Kuiwen, spokesperson of the General Administration of Customs (GACC) and director of the GACC's Department of Statistics & Analysis, who will introduce the situation and answer your questions.

We will first invite Mr. Li Kuiwen to give a brief introduction.

Li Kuiwen:

Ladies and gentlemen, friends from the media, good morning! Welcome to today's press conference. It's a great pleasure to meet with you again. Next, I'll begin by introducing China's import and export performance for 2021, and then answer your questions.

In 2021, with the world experiencing the combined impacts of major changes and a pandemic both unseen in a century, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, China has used high-level opening-up to promote deeper reform and stimulate high-quality growth. China has stayed ahead globally in terms of economic development and pandemic response, and maintained rapid growth in foreign trade, which registered a record high in volume and steady progress in quality. According to statistics from the GACC, China's total foreign trade of goods expanded 21.4% year on year to 39.1 trillion yuan in 2021. Exports grew by 21.2% to 21.73 trillion yuan and imports increased by 21.5% to 17.37 trillion yuan. Compared with the same period in 2019, China's foreign trade, exports and imports increased by 23.9%, 26.1% and 21.2%, respectively. In 2021, there were five main features which I will now outline: 

First, China's foreign trade moved up another notch in 2021 by exceeding $6 trillion for the first time. The total goods trade amounted to $6.05 trillion. China first reached $4 trillion in foreign trade in 2013. In the following eight years, it crossed the thresholds of $5 trillion, and then $6 trillion in 2021, reaching a record high. The increase in foreign trade this year reached $1.4 trillion.

Second, China's trade with its main trading partners maintained sound growth. China's trade with countries along the Belt and Road rose at a faster speed. In 2021, China's trade with its top five trading partners, the ASEAN, the European Union, the United States, Japan and the Republic of Korea, stood at 5.67 trillion yuan, 5.35 trillion yuan, 4.88 trillion yuan, 2.4 trillion yuan and 2.34 trillion yuan, respectively, up 19.7%, 19.1%, 20.2%, 9.4% and 18.4%, respectively. During the same period, China's trade with countries along the Belt and Road rose by 23.6%, 2.2 percentage points higher than the overall growth rate.

Third, the trade models have been further optimized, with general trade accounting for more than 60%. In 2021, China's general trade increased by 24.7% to 24.08 trillion yuan, accounting for 61.6% of the total foreign trade volume, up 1.6 percentage points; among general trade, exports rose by 24.4% to 13.24 trillion yuan and imports rose 25% to 10.84 trillion yuan. During the same period, processing trade increased by 11.1% to 8.5 trillion yuan, accounting for 21.7% of the total foreign trade volume.

Fourth, foreign trade entities have been further energized, with the private sector playing a more important role. In 2021, the number of enterprises involved in exports and imports increased by 36,000 to 567,000. China's private sector registered 19 trillion yuan in imports and exports, an increase of 26.7%, accounting for 48.6% of the country's total foreign trade volume and 2 percentage points higher than the previous year. Meanwhile, foreign-invested enterprises marked 14.03 trillion yuan in foreign trade, up by 12.7%; and state-owned enterprises accumulated 5.94 trillion yuan, up by 27.7%. 

Fifth, exports and imports of electromechanical products maintained sound growth. In 2021, China's exports of electromechanical products increased by 20.4% to 12.83 trillion yuan, making up 59% of the country's total exports. Exports of automatic data processing equipment and its parts, cellphones, and automobiles increased by 12.9%, 9.3% and 104.6%, respectively. Meanwhile, imports of electromechanical products increased by 12.2% to 7.37 trillion yuan, accounting for 42.4% of total imports. The imports of integrated circuits increased by 15.4%.

2021 marked a milestone year in the history of the CPC and the country. Amid challenges and difficulties posed by the pandemic, China made outstanding achievements in foreign trade, which speaks volumes of its resilience. This is the result of the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core. Over the past year, China's customs have followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, kept firmly in mind the need to maintain political integrity, think in big-picture terms, follow the leadership core and keep in alignment. We have also strengthened our confidence in the path, theory, system and culture of socialism with Chinese characteristics, and resolutely upheld General Secretary Xi Jinping's core position on the Party Central Committee and in the Party as a whole, and resolutely upheld the Party Central Committee's authority and its centralized, unified leadership. We have fully implemented major policy decisions and plans of the Party Central Committee and the State Council and got things done in a timely manner. Coordinated efforts have been made to prevent the pandemic at ports and promote the steady growth of foreign trade. Supervision has been strengthened and services have been optimized. With all these efforts, we have effectively promoted the steady growth in the volume and quality of foreign trade.

In general, our foreign trade has gotten off to a good start in the 14th Five-year Plan period (2021-2025). Looking ahead throughout this year, it will face more uncertainties, instability, and imbalance. The Chinese economy faces pressure from the three aspects of demand contraction, supply shock, and weakening expectations. As the global COVID-19 situation remains grim, the external environment is prone to be more complex, graver, and more uncertain, with the recovery of international demand slowing down. In addition, because of the high foreign trade base in 2021, it will continue to face certain pressure in 2022. While facing these difficulties and challenges, we must also see that the Chinese economy is resilient and that the fundamentals sustaining China's steady and long-term economic growth remain unchanged. We must have firm confidence in stabilizing the fundamentals of foreign trade.

Next, customs will uphold the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the guiding principles of the 19th CPC National Congress and the plenary sessions of the 19th CPC Central Committee, and earnestly implement the decisions and plans of the Central Economic Work Conference. Customs will continue to follow the general principle of pursuing progress while ensuring stability, fully and faithfully apply the new development philosophy, accelerate the fostering of a new pattern of development, and continue to ensure stability on the six fronts and security in the six areas. Customs will coordinate development and security, coordinate the pandemic prevention and control at ports and efforts to achieve a steady foreign trade growth, strengthen supervision and improve services, and continue to optimize the business environment at ports to better serve high-level openness and high-quality development. Customs will also do a good job in cross-cycle adjustment and promote the stable development of foreign trade to welcome the convening of the 20th CPC National Congress with excellent performance.

Now, I would like to take your questions.

Xing Huina:

Thank you, Mr. Li, for your introduction. Now, it is time for questions. Please indicate the media organization you work for before raising questions.

China Daily:

China's foreign trade volume maintained double-digit growth in 2021, hitting a record high. What are the main driving factors? What are your expectations for foreign trade this year? Thank you.

Li Kuiwen:

Thank you for your questions. China's foreign trade achieved rapid growth in 2021. Its volume exceeded the $5 trillion and $6 trillion thresholds over the year, setting new highs while its quality improved steadily. It has gotten off to a good start in the 14th Five-year Plan period. In our view, the main factors driving the growth are as follows:

First, China maintained a globally leading position in economic development and pandemic control. In 2021, the Chinese economy continued to recover. The country took new steps to build a new development pattern, made new progress in high-quality development, and maintained rapid growth in its major economic indicators. The Chinese economy is resilient, and the fundamentals sustaining China's steady and long-term economic growth remain unchanged. Domestic production and consumption demand provided strong support for the steady growth of foreign trade. According to customs statistics, in 2021, China's import and export of intermediate products rose by 24.9% and 28.6%, respectively, while the import of consumer goods increased by 9.9%.

Second, the global economy remained on a trajectory toward recovery. The global economy showed a recovery trend in general in 2021. The World Bank and the International Monetary Fund both predicted that the global economy would grow by over 5%, and the World Trade Organization predicted that the global trade of goods would go up by 10.8%. In 2021, China's export to the EU and Africa both grew by over 20%, and its export to Latin America increased by over 40%. From a product perspective, on top of the high growth in 2020, China's export of products related to the stay-at-home economy, such as laptops, tablets, and household appliances, increased by 13.2% in 2021, while its export of medical and medicinal materials as well as medicines grew by 101.2% – strong support of the global fight against COVID-19.

Third, policies and measures to stabilize growth continued to work. Since last year, China has introduced a series of policies and measures to stabilize market entities and the market as well as to ensure a stable and smooth industrial chain and supply chain of foreign trade. Examples are maintaining reasonable and sufficient liquidity, extending and improving some tax and fee cuts, implementing new structural tax cuts; increasing financing support for micro, small, and medium companies and manufacturing businesses; deepening reforms to streamline administration and delegate power, improve regulation, and upgrade services; continuously optimizing the business environment, accelerating the development of new forms and models of business in foreign trade; further deepening the reform of cross-border trade facilitation; and promoting the reform and innovation in trade and investment facilitation in pilot free-trade zones. Their sound implementation ensured continuous effects, helping foreign trade companies out of difficulties and greatly stimulating the vitality of market entities. They served as an important support for the steady growth of foreign trade.

Regarding the trend of China's foreign trade, as I mentioned earlier, as the COVID-19 pandemic is still undergoing many twists and turns, China faces a more complicated, severe, and uncertain international environment, and the comparative advantage and cardinal effect that the Chinese economy can depend on to take the lead to recover may weaken. All the above bring more uncertainties, destabilizing factors, and imbalances to the development of China's foreign trade in 2022. However, we should understand that the fundamentals sustaining China's steady and long-term economic growth remain unchanged, which will provide powerful support for maintaining stability in foreign trade. Thank you.

CCTV:

China's import and export to countries along the Belt and Road's routes outpaced the global average over the past year. Were there any highlights you'd like to share? What new measures have China's customs taken in jointly building the Belt and Road Initiative? Thank you.

Li Kuiwen:

Thank you for your questions. Last year marked the eighth anniversary of the Belt and Road Initiative (BRI). Since the BRI was put into action, the trade relationship between China and BRI-participating countries has been increasingly close. Data from China's customs showed that in 2021, China's import and export to countries along the routes reached 11.6 trillion yuan, up 23.6%, 2.2 percentage points higher than the overall growth rate of China's foreign trade in the same period. Of this, exports reached 6.59 trillion yuan, up 21.5%; imports totaled 5.01 trillion yuan, up 26.4%. That growth is mainly down to the following aspects.

First, the trade volume has grown steadily. From 2013 to 2021, China's total import and export volume with countries along the routes increased from 6.46 trillion yuan to 11.6 trillion yuan, with an average annual growth rate of 7.5%, and its share in China's total foreign trade increased from 25% to 29.7% in the same period.  

Second, the cooperation of the industrial and supply chains has tightened. From 2013 to 2021, the proportion of intermediate products in China's exports to BRI-participating countries increased from 49.8% in 2013 to 56.2% in 2021. The export of auto parts, textiles, and lithium electronic batteries increased by 26.7%, 14.1%, and 50.4%, respectively, in 2021.

Third, the cooperation in energy, agriculture, and mineral resources has gained momentum. In 2021, China imported 1.18 trillion yuan of crude oil from countries along the routes, an increase of 44%; 326.55 billion yuan in agricultural products, up 26.1%; 212.77 billion yuan in metal ores, up 24.9%; and 185.45 billion yuan in natural gas, up 38.9%.

Fourth, private enterprises have been active. In 2021, the import and export of private enterprises to BRI-participating countries reached 6.21 trillion yuan, an increase of 25.6%, accounting for 53.5% of China's overall import and export to those countries during the same period, an increase of 0.8 percentage point.

Last year, we mainly did the following work to jointly promote high-quality BRI cooperation.

First, we have stepped up efforts to promote the "Smart Customs, Smart Borders, and Smart Connectivity" Initiative. Chinese President Xi Jinping called for deepening customs cooperation to ensure trade security and faster clearance and exploring cooperation on a pilot basis under the "Smart Customs, Smart Borders, and Smart Connectivity" Initiative while hosting the China-CEEC Summit on Feb. 9, 2021. China's customs have resolutely implemented the important instructions of President Xi and promoted reform and development of the customs service fully in line with the initiative. A guideline has been formulated and implemented to strongly combine the initiative and high-quality BRI development, so as to realize "one plus one is greater than two." Until now, we have launched 78 global cooperation projects, most of which involve countries along the routes.

Second, we have formulated a work plan to promote the high-quality development of the BRI cooperation during the 14th Five-Year Plan period (2021-2025). The year 2021 was the inaugural year of China's 14th Five-Year Plan. To accomplish the work for the year in a scientific and effective way, the GACC has formulated this plan by adopting a problem-oriented and objective-oriented approach. We have achieved coordinated development with a focus on the key countries, sectors, and projects. Under the "Smart Customs, Smart Borders, and Smart Connectivity" Initiative, we have ramped up efforts to promote the joint development of the BRI cooperation, thereby offering wisdom and strengths to the modernization of the national governance system and capabilities. 

Third, we pragmatically pushed forward key projects. We have made every effort to promote "Authorized Economic Operator" (AEO) mutual recognition and cooperation with countries that are willing to jointly build the Belt and Road. In 2021, we overcame the impact of the pandemic and signed AEO mutual recognition agreements with five countries jointly building the Belt and Road — Serbia, Chile, Iran, Uganda, and South Africa. By the end of 2021, China customs had signed AEO mutual recognition agreements with 31 countries jointly building the Belt and Road. In addition, we pragmatically promoted the "Customs-Train Operators Partnership for Secure and Expedited Clearance of CR Express Carried Goods (C-TOP)," and signed cooperation documents with Kazakhstan and Belarus on the C-TOP program to support the development of China-Europe freight trains, further expand connectivity and cooperation, and promote unimpeded trade. Thank you.

Beijing Youth Daily:

The Beijing Winter Olympics and Paralympics will open soon. What services and guarantees does the customs system provide for the smooth running of the Winter Olympics and Paralympics? Thank you.

Li Kuiwen:

Thank you for your question. The Beijing Winter Olympics is a major landmark event at an important historical time in China. The GACC resolutely implements the spirit of General Secretary Xi Jinping's important instructions on the COVID-19 prevention and control at ports and the preparation for the Winter Olympics and Paralympics, strengthens supervision, and optimizes services. We will unremittingly implement port pandemic prevention and control in a scientific and targeted manner, ensure high-quality and efficient services for the health quarantine of inbound personnel, and carry out material customs clearance for the Winter Olympic and Paralympic Games. The GACC will make due contributions to safeguarding the security of the Chinese capital city and ensuring the smooth holding of the Winter Olympics and Paralympics. Our work is mainly as follows:

First, we will implement port pandemic prevention and control in a scientific and targeted manner and provide services for the arrival and departure of Olympic-related personnel while resolutely curbing the spread of the pandemic through the port. We will strengthen communication with the arrival and departure center of the Beijing 2022 organizing committee and other departments, learn about the information of inbound and outbound personnel in advance, continue to refine the customs clearance guarantee plan, and implement the "one flight, one policy" for all Winter Olympics-related flights so as to achieve strict supervision, targeted quarantine, and efficient services. For example, in order to reduce the time people stay at the port, we have specifically compiled the Instructions for Health Declaration of Inbound Winter Olympics Charter Flights and translated it into multiple languages so that Olympic-related personnel can fill in health declaration cards in advance before boarding. The efficiency of customs clearance will then be improved. In accordance with the requirement that "the prescribed routines must be done 100%; even the 99% is unqualified," we strictly standardize all measures in aspects of health declaration card verification, temperature monitoring, medical inspection, sampling and testing, handover and transfer, and information reporting for inbound personnel. We have paid close attention to the pandemic prevention and control work at the port and resolutely curb the spread of the pandemic through the port. As of Jan. 10, 2022, Beijing customs has monitored and handled a total of 196 Olympic-related flights, involving 5,958 Olympic-related personnel.

Second, we continue to optimize our services to ensure the efficient customs clearance of the Winter Olympics materials. We have issued the Notice on Customs Clearance for the Beijing 2022 Winter Olympic and Winter Paralympic Games in advance to provide detailed guidelines for inbound and outbound materials and personnel for the Winter Olympics in eight aspects, including information registration and filing, tax guarantees for temporarily imported materials, pre-entry filing and approval, customs clearance of imported materials, supervision of personnel and personal items, and customs clearance of journalists' interview equipment. At the same time, we have set up special customs channels and special windows for inbound and outbound Winter Olympics materials and personnel, relied on the Winter Olympics' paperless customs clearance management system to simplify the declaration, and implemented the "5+2" (5 working days + 2 weekend days) reservation clearance system in order to ensure that Winter Olympics materials are available for inspection 24 hours a day. In addition, we have worked hard to supervise imported food related to the Olympics and ensure the safe and smooth supply of imported food for the Beijing Winter Olympics and Paralympics. As of Jan. 10, 2022, Beijing customs has monitored, handled, inspected, and released 637 shipments of inbound materials for the Winter Olympics, with a value of approximately 1.499 billion yuan.

Third, we strengthen investment in technology and personnel to provide strong support for the Winter Olympics with high-quality and efficient customs supervision services. Beijing customs, as the competent customs office for the 2022 Beijing Winter Olympics and Winter Paralympics, has been promoting the transformation of the special achievements of the high-tech Winter Olympics. It has deployed and applied 10 kinds of equipment and facilities such as the nuclear radiation holographic positioning system, universal disinfection cabinets, trace odor detectors, and intelligent inspection robots at the port, in a bid to improve the intelligence and informatization level of supervision and clearance for the Winter Olympics. Beijing customs keeps improving the "horizontal + vertical" human resources echelon working mechanism. It has established a support echelon, including more than 1,000 front-line and reserve personnel and more than 400 emergency support personnel, to provide all-around backup support for Olympic-related personnel during the peak period for their entry, according to the actual needs of the Winter Olympics customs clearance work. Thank you.

Phoenix TV:

China just celebrated the 20th anniversary of its accession to the World Trade Organization (WTO) last month. What are the characteristics of China's import and export of goods over the past 20 years? Thank you.

Li Kuiwen:

Thank you for your question. The year 2021 marked the 20th anniversary of China's accession to the WTO. Customs data showed that the total volume of China's imports and exports increased from 4.22 trillion yuan in 2001 to 39.1 trillion yuan in 2021, up by an annual average rate of 12.2%. Customs data are official figures from China's import and export of goods. The statistics reflect the leap-forward development of our trade in goods over the past 20 years.

First, the total import and export of goods have increased by more than eight times, making China the world's largest trader in goods. The total value of China's imported and exported goods was 4.22 trillion yuan in 2001, and exceeded 10 trillion yuan, 20 trillion yuan, and 30 trillion yuan in 2005, 2010, and 2018, respectively. The figure approached 40 trillion yuan in 2021, registering an increase of 8.3 times in 20 years. In particular, the total value rose from 24.4 trillion yuan to 39.1 trillion yuan in the past 10 years, with an increment of 14.7 trillion yuan, equivalent to China's import and export of goods in 2009. This has epitomized China's achievements in reform and opening-up in the new era. What's more, China's import and export of goods accounted for only 4% of the world's total in 2001, and its share jumped to 13.5% in the first three quarters of 2021. In 2013, China became the world's largest trader of goods. In 2021, the total value of US dollar-denominated imports and exports exceeded 6 trillion yuan for the first time in history.

Second, the structure of exports has changed significantly, with machinery and electronic products now accounting for nearly 60% of all exports. Over the past 20 years, China's export of goods has grown at an average annual rate of 12.5%. Machinery and electronic products have become the most exported products, accounting for 59% of the total in 2021. It is worth mentioning that since the outbreak of COVID-19, China has actively promoted international anti-pandemic cooperation and provided hundreds of millions of masks, protective suits, test kits, vaccines, and other materials to the international community, thus contributing to the global COVID-19 response and economic recovery.

Third, imports have continuously expanded, and the import of high-tech and resource products has grown steadily. Over the past 20 years, China's import of goods has increased at an average annual rate of 11.8%. In 2009, China became the world's second-largest importer. In the first three quarters of 2021, China's imports accounted for 12.1% of the international market. A more open Chinese market has enabled the rest of the world to better share in the dividends brought by its economic growth and booming consumption. Over the past 20 years, China's import of high-tech products has risen steadily at an average annual rate of 14%, promoting the transformation and upgrading of the industrial structure. The import of resource products has expanded in an orderly manner. The import of metal ore, crude oil, coal, natural gas, and other resource products has increased at an average annual rate of 18%, providing a strong supply to ensure steady domestic economic growth.

Fourth, China has diversified its trading partners, with ASEAN becoming our largest trading partner. Over the past 20 years, we have maintained stable trade relations with traditional markets, including the European Union, the United States, Japan, and South Korea, which together accounted for 38.3% of China's total foreign trade in 2021. At the same time, we have actively explored emerging markets such as ASEAN, Africa, Latin America, Russia, and India. These partners accounted for 16% of China's total foreign trade in 2001, but the figure increased to 30.7% in 2021. Among them, ASEAN became China's largest trading partner in 2020, and it remained so in 2021, accounting for 14.5% of China's total foreign trade. It is worth noting that China has continued to deepen trade relations with countries along the Belt and Road, expand trade scale and further promote the balanced and mutually beneficial development of trade. 

Fifth, the number of foreign trade entities multiplied, with private enterprises taking up the largest share of all business entities in foreign trade. In 2021, 567,000 Chinese enterprises actually engaged in import and export business, 6.3 times more than that in 2001. In 2019, private enterprises took up a 42.7% share in the gross value of imports and exports of China, increasing significantly from 6.1% in 2001. In 2021, their share grew to 48.6%. Over the past 20 years, private enterprises have taken up the largest share of all foreign trade entities in China. Meanwhile, the number of foreign-invested enterprises actually engaging in import and export business also further increased to reach 82,000 in 2021, an increase of 21,000 compared with that in 2001, with the average annual import and export scale of the enterprises reaching 170 million yuan, increasing by 4.8 times compared with 2001.

Sixth, in foreign trade, new driving forces have been constantly stimulated, and new business modes have emerged one after another. Customs statistics show that in 2021, imports and exports in China's comprehensive bonded zones, pilot free-trade zones, and the Hainan Free Trade Port increased by 24.3%, 26.4%, and 57.7%, respectively, demonstrating a strong development momentum. In terms of the new trade modes, the scale of cross-border e-commerce and market procurement trade expanded rapidly. In 2021, the import and export volume of China's cross-border e-commerce reached 1.98 trillion yuan, up 15%, and market procurement trade's exports increased by 32.1%. Thank you.

ThePaper.cn:

The RCEP deal came into force on Jan. 1, 2022. Could you briefly introduce China's trade with RCEP member countries as it stood last year? What have customs done to promote the implementation of the RCEP deal? Thank you.

Li Kuiwen:

Thanks for your question. On Jan. 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) agreement came into force in six ASEAN countries, namely Brunei, Cambodia, Laos, Singapore, Thailand, and Vietnam, as well as China, Japan, New Zealand, and Australia, marking the start of the world's largest free trade zone so far. Customs statistics show that in 2021, China's imports from and exports to the other 14 RCEP member countries reached 12.07 trillion yuan, up 18.1%, and accounting for 30.9% of China's total foreign trade. Of this, exports reached 5.64 trillion yuan, up 16.8%, while imports reached 6.43 trillion yuan, up 19.2%.

Among the 701 binding obligations of the RCEP agreement, the GACC is responsible for 174 items solely or jointly, accounting for 24.8% of the total. At present, relevant work has been done comprehensively. The GACC's main work in promoting the implementation of the RCEP agreement can be seen in the following three aspects:

First, in the aspect of rules of origin and tariff concessions. The GACC issued two relevant regulations, namely measures on the administration of origin of goods imported and exported under the RCEP and measures for the administration of approved exporters, along with four supporting normative documents. In response to RCEP's tariff concession model and requirements for implementation of the rules of origin, we upgraded the informationization system for customs origin of goods management, realized the shared use of visa data and customs clearance data, and built a three-dimensional customs supervision and service network, which combines origin of goods management, enterprises management, and commodity management. We completed the consultations on the transposition of product-specific rules as well as the consultations on the guidance for the implementation of the rules of origin. We shared China's approach with other members for a consensus to be reached and overcame obstacles for the implementation of the RCEP deal.

Second, in the aspect of customs procedures and trade facilitation. Focusing on the RCEP trade facilitation rules, we continued to perfect customs clearance procedures, improve customs clearance efficiency, and reduce customs clearance costs, aiming to accelerate the building of a market-oriented, law-based, and international business environment at ports. The RCEP members were encouraged to optimize their own workflows, and standardize and simplify customs regulatory procedures. We jointly reviewed customs procedures with other RCEP members. We formulated the plan to promote the mutual recognition of AEO between China and other RCEP members and its implementation. So far, China has signed mutual recognition arrangements with five of the 10 RCEP members with the AEO system. Relevant measures have been piloted at comprehensive bonded zones in the free trade zones in Shanghai, Guangdong, Tianjin, and Fujian, such as clarifying the range of acceptable "minor discrepancies or errors" for certificates of origin under preferential trade agreements.

Third, in terms of animal and plant quarantine, food security, and import and export commodity inspection, we leveraged China's highly complementary cooperation with RCEP members in animal and plant quarantine, comprehensively straightened the access mechanisms for imported agricultural products, and promoted the export of China's high-quality agricultural products. We strengthened animal and plant epidemic information sharing with RCEP members, advanced international epidemic surveillance collaboration, and launched the upgraded version of China-ASEAN animal and plant quarantine and food security cooperation information website. We paid more attention to and strengthened studies on relevant technical trade measures taken by RCEP members, raised our trade concerns, and actively negotiated with foreign members through bilateral and multilateral channels so as to safeguard the legitimate rights and interests of China's export enterprises. 

At the same time, we worked hard to publicize and interpret the policies on RCEP customs business. In particular, we organized nearly one thousand training programs regarding rules of origin in various forms and through diverse platforms to help acquaint enterprises with these rules, conventional tariff rates, and related requirements of favored customs clearance for import and export goods, the application for certificates of origin and independent statement issuance, among others. Thank you.  

People's Daily:  

The Central Economic Work Conference proposed that the micro-economy should continue to stimulate the vitality of market entities. How was the import and export performance of foreign trade market players last year? What measures did the GACC introduce to galvanize the foreign trade enterprises? Thank you. 

Li Kuiwen:  

Thank you for your question. In 2021, China's foreign trade businesses continued to gain momentum, which strongly supported the steady growth of foreign trade. The number of enterprises with substantive import and export achievements increased by 36,000 to 567,000. Among them, private enterprises remained the largest foreign trade entity in China, with imports and exports totaling 19 trillion yuan, up 26.7% and accounting for 48.6% of the country's total foreign trade. Imports and exports of foreign-invested companies remained stable at 14.03 trillion yuan, up 12.7%, and those of state-owned enterprises accelerated and rose by 27.7% to 5.94 trillion yuan.  

To stimulate the vitality of foreign trade market players, the administration made efforts in the main following aspects in 2021:

First, we implemented the reforms to streamline administration and delegate power, improve regulation, and upgrade services, and enabled the filing of customs declaration entities to be addressed online in the whole process and anywhere across the country. We further deepened the reforms mentioned above, actively promoted the transformation from approval to filing of all the customs declaration entities, and introduced measures for the convenience and benefits of the people and enterprises, including the whole process of online filing anywhere nationwide. Under these measures, enterprises can log in the "China International Trade Single Window" or the "Online Customs" websites for filing across the country, and print the filing receipt after the local customs' review, moving the whole process online and making it paperless. If enterprises happen to choose the wrong local customs, the customs that receives the application should be responsible for handling the application, thus enabling enterprises to apply at any site nationwide and settle documentation all at once without any cost or travel. 

Second, we have sped up the international mutual recognition and cooperation of AEOs to help enterprises enjoy convenience further afield. In doing this, we focused on Belt and Road countries, RCEP members, Central and Eastern European countries, and other major trading countries. Since 2021, China has completed AEO mutual recognition with Serbia, Chile, Uganda, Iran, and South Africa. To date, China has signed AEO mutual recognition agreements with 21 economies, including the European Union and Singapore, covering 47 countries and regions — the most in the world. Among them, 31 are Belt and Road countries, five are RCEP members, and 13 are Central and Eastern European countries. When China's AEO enterprises export goods to countries and regions with mutual recognition, they can enjoy the convenient measures offered by local customs, including reduced inspection, priority handling, the appointment of liaison officers, and prioritization of customs clearance during emergencies so as to reduce trade costs and enhance enterprises' vitality.  

Third, we have strengthened intellectual property protection and boosted companies' innovation. We took stringent measures to crack down on intellectual property infringement and carried out a series of campaigns, including comprehensive intellectual property protection, intellectual property protection in shipping and delivery channels, and intellectual property protection for export transshipment goods. We also formulated a knowledge graph centering on intellectual property customs protection and developed and piloted a new-generation inspection management system featuring the use of intelligent identification of intellectual property and trademarks on mobile devices. We provided guidance and services regarding company-specific intellectual property protection and strengthened companies' awareness and capability in intellectual property protection. We continued to enhance law-enforcement cooperation across different departments, customs zones, and borders and cemented whole chain of intellectual property protection so as to better serve the innovative development of companies. 

Next, the GACC will follow the requirements of boosting the confidence of foreign trade entities and deepen the reforms of streamlining administration and delegating power, improving regulation, and upgrading services. We will also improve the business environment at ports, help companies to address their difficulties and resume development, and further stimulate the vitality and growth momentum of foreign trade entities. 

Global Times: 

The pandemic has dealt a severe blow to the traditional way of trade, while new business forms and models such as cross-border e-commerce have played a vital role in ensuring orders, markets, and market shares. Can you please tell us more about new modes of foreign trade in 2021? Thank you. 

Li Kuiwen:

Thank you for your question. New business forms and models such as cross-border e-commerce and market procurement are an important part of China's foreign trade, and they also reflect a key trend in international trade development. Since the COVID-19 pandemic, China's cross-border e-commerce has unleashed its strength in online marketing, online transaction, and contactless delivery, grown its new strength in international cooperation and competition, and has thus registered rapid and sustained growth in foreign trade. 

First, in terms of cross-border e-commerce, B2B export pilot programs have been expanded, and the China-Europe freight trains have developed in tandem with new business forms such as goods consolidation and transit trade. In order to help export enterprises engaged in cross-border e-commerce to better tap into the international market, the B2B export supervision pilot program regarding cross-border e-commerce was expanded to customs across China in the latter half of 2021, with supporting policies being constantly improved. Meanwhile, cross-border e-commerce railways, including those from the China-SCO cooperation demo area to Minsk in Belarus, from Yiwu and Suzhou to Europe, and from Hefei to Hamburg and Wilhelmshaven in Germany, opened and began regular operations, resulting in the integrated development of China-Europe freight train and cross-border e-commerce. Data shows that cross-border e-commerce registered a trade volume of 1.98 trillion yuan in 2021, increasing 15% year on year. Exports of cross-border e-commerce reached 1.44 trillion yuan, rising 24.5% year on year. 

Second, the export volume through market procurement trade has exceeded 900 billion yuan. As China expands its national market procurement pilots, the figure in 2021 amounted to 930.4 billion yuan, up 32.1%, accounting for 4.3% of the total export of the same period and driving exports growth by 1.3 percentage points. Thank you.

Xing Huina:

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

China News Service:

As we know, China's foreign trade aimed to remain stable in size and achieve high-quality development in 2021. In terms of improving quality, what were the new development and features of China's imports and exports last year? Thank you.

Li Kuiwen:

Thank you for your question. In 2021, China's foreign trade achieved new heights in size and saw new progress in quality. We believe this is reflected in the following aspects:

First, China's foreign trade took an increased share in the international market. According to the latest statistics, in the first three quarters of 2021, China's exports accounted for 14.9% of the global market share, up 0.6 percentage point year on year and 3.9 percentage points higher than that of 2012. This increment equals the global market share of China's export in 2000. In the meantime, since China's imports accounted for over 10% of the global market share for the first time in 2013, this figure has increased steadily. The global market share of China's imports reached 12.1% in the first three quarters of 2021, up 0.5 percentage point year on year. This showcases the great achievements we have made as we enter a new era of reform and opening-up.

Second, new business forms saw even more rapid development. In 2021, the export volume in cross-border e-commerce sector increased 24.5% year on year, and its exports through market procurement trade grew 32.1%. The policies and measures China adopted to promote the healthy, sustained, and innovative development of new business forms and models of foreign trade continue to deliver effect.

Third, platforms for opening-up played a larger role. In 2021, the foreign trade of the comprehensive bonded zones across China increased 24.3%, and that of pilot free trade zones grew by 26.4%. The foreign trade of the Hainan free-trade port surged 57.7%.

Fourth, the vitality of China's market entities grew stronger. In 2021, the number of foreign trade enterprises with actual import and export business performance reached 567,000, 36,000 more than the previous year. Among them, private enterprises have contributed to 58.2% of the growth of the country's foreign trade.

Fifth, the structure of China's foreign trade was further optimized. In terms of the trade structure, the share of general trade increased by 1.6 percentage points in 2021. Nearly 60% of goods exported were electronic products. In terms of regional development, the foreign trade of China's central and western regions amounted to 6.93 trillion yuan, up 22.8%, and 1.4 percentage points higher than the growth rate of China's overall foreign trade of the same period. In terms of trading partners, China's foreign trade with major economies such as EU, the U.S., and Japan increased 17.5%, and trade with Latin America and Africa surged 31.6% and 26.3%, respectively. China and its trading partners jointly safeguarded the stability of global industrial and supply chains and propped up the world's economic recovery.

I would also like to take this opportunity to introduce the efforts being made by Chinese customs in coordinating pandemic prevention and control in port areas and facilitating the growth of foreign trade.

In 2021, despite the fallout from the COVID-19 pandemic, China's foreign trade made remarkable achievements and became a highlight of China's economy. While demonstrating the sector's strong resilience, this also speaks volumes about the unremitting efforts of Chinese customs.

Over the past year, customs departments across China followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, took firm and swift actions based on the guiding principles of General Secretary Xi Jinping's important instructions, thoroughly grasped the new features and requirements of the new stage of development, and implemented the new development philosophy in a complete, accurate, and comprehensive manner. The 14th Five-Year Plan for customs development and that for the development of port areas were introduced and implemented, embarking on a new journey toward socialist modernization in terms of customs development.

In the past year, customs authorities around the country coordinated development and security, strengthened supervision and improved services; enhanced their regulatory capacity; implemented stringent, science-based, and targeted epidemic prevention and control measures at the port; maintained a tough stance against smuggling; vigorously created a more business-friendly environment at the port; and effectively promoted the steady and quality growth of foreign trade.

Over the past year, customs authorities around the country adopted a holistic approach and actively integrated into the overall process of national development, supporting the implementation of major national strategies, including the coordinated development of the Beijing-Tianjin-Hebei region, the Yangtze Economic Belt, the Guangdong-Hong Kong-Macao Great Bay Area, and the integrated development of Yangtze River Delta. They also served the pilot free trade zones and the construction of Hainan Free Trade Port, promoted high-quality development of the Belt and Road Initiative through joint efforts, expanded the mutual recognition of AEOs, advanced the initiative of "Smart Customs, Smart Borders and Smart Connectivity," completed preparatory work for the RCEP implementation ahead of schedule, and promoted China to open wider at a high standard.

I will report some concrete work as follows:

First, efforts were made in epidemic prevention and control in a science-based and targeted way at points of entry and exit. Since 2021, the customs has taken resolute, rapid, and strong measures to implement science-based, targeted, and strict regulations in epidemic response and strengthened quarantine inspection at points of entry and exit.

Step one, strengthening assessment of pandemic situation. We have strictly observed the principle of early detection, reporting, quarantine and treatment, and closely monitored and assessed the pandemic situation overseas and the situations of the virus mutation, and changing prevention and control measures, on a daily basis; and required the customs at the land border crossings to implement the principle of "targeted plan for each land border crossing," and further improved and refined their working plans and emergency responses so as to strictly prevent the virus from entering the country through the land border crossings.

Step two, tightening up border quarantine. The customs tightened checks on transportation vehicles before they entered China, and took a series of checking measures for people entering the country, including taking temperatures twice, checking their Health Declaration Forms, medical screening, and sampling testing to fully intercept any potential risks brought by inbound travelers. We have also strengthened the response mechanism of joint prevention and control with relevant local departments in order to transfer all inbound travelers and to have them report the relevant information, achieving seamless and closed-loop management. 

Step three, we adhered to the principle of "virus-prevention amidst people, goods, and the environment." The GACC, according to the working plan of the State Council's inter-agency task force, launched nucleic acid monitoring and testing at points of entry and preventive disinfection and supervision for imported cold-chain food and imported non-cold chain container goods from high-risk areas. They also supervised airlines to ensure they stringently disinfected their aircraft according to the requirements of the State Council's inter-agency task force.

Step four, personal protection has been strengthened. Chinese customs made efforts to implement a safety protection system and supervision system, enhanced training and assessment, and strictly regulated personal protective procedures. Rigorous closed-loop management was applied to people working in high-risk sectors. All the front-line workers at the port were covered by complete vaccination against COVID-19. The authority also accelerated the coverage of booster vaccinations, stressing that personal protective standards and measures should remain the same after the vaccination.

Second, we have spared no effort to promote the steady growth of foreign trade. In 2021, focusing on the concern of market entities, Chinese customs made concerted efforts to pursue high-level opening-up. We actively implemented all policies and measures stabilizing foreign trade and inbound investment to help maintain the momentum of steady and robust growth of imports and exports.

The first effort was to keep improving the business environment at our ports. Except for some exceptional cases, all 38 customs supervision documents involved in imports and exports can be processed at a single window. In addition, the expansion of pilot financial services through the "Single Window System" benefited more than 230,000 foreign-trade companies, consolidating the progress in reducing the customs clearance time for imports and exports. As a result, in December 2021, the average time for customs clearance was reduced to 32.97 hours for imports and 1.23 hours for exports, which was cut by 66.14% and 89.98%, respectively, compared with that in 2017.

Secondly, customs clearance costs have been effectively reduced. We have significantly brought down government-imposed transaction costs by implementing institutional innovation. In 2021, we completed business filing procedures online for 183,000 companies in a simplified and speedy manner. In addition, we have advanced the pilot reform of customs surety insurance. By the end of 2021, the bond insurance has guaranteed a total of 534.02 billion yuan in duties and tax payments by 3,775 companies, helping them reduce costs and increase efficiency. 

Thirdly, we have made great efforts to develop new forms of trade. Measures to reform cross-border e-commerce B2B export supervision have been improving. Since July 1, 2021, customs authorities nationwide have applied a new supervision model to cross-border e-commerce B2B direct export and export to overseas warehouses, enabling companies to better develop the international market. We have supported the expansion of the market procurement trade pilot program and worked with related departments to evaluate new marketplaces covered by the pilot program. Up to now, a total of 31 marketplaces have been included in the market procurement trade pilot scheme.

Finally, we have actively supported the development of new pacesetters of opening-up. We have promoted the high-quality development of comprehensive bonded zones, and supported qualified regions that have demand for such zones to open new ones. In 2021, eight new comprehensive bonded zones were built. Up to now, there are 168 special customs supervision areas nationwide. In addition, we have given full play to the role of pilot free trade zones as the "testing ground." In 2021, we filed and approved preliminary trials on 25 innovative measures to help high-level opening-up. Thank you.

Xing Huina:

Thank you, Mr. Li. Today's press conference is at this moment concluded. Those news organizations that didn't get a chance to raise questions today may continue to keep in contact with us after the press conference. Thanks to friends from the media. Goodbye.

Translated and edited by Zhang Jiaqi, Wang Yiming, Ma Yujia, Chen Xia, Zhang Rui, Wang Wei, Zhang Liying, Li Huiru, Lin Liyao, Liu Sitong, Xu Xiaoxuan, Liu Qiang, Zhang Lulu, Huang Shan, Li Xiao, Zhang Tingting, He Shan, Zhu Bochen, Wang Qian, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Li Sen, director general of the General Planning Department of the Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG)

Yan Jiarong, spokesperson of the BOCOG

Liu Yumin, director general of the Planning and Construction Department of the BOCOG

Yu Bo, chief of Yanqing District of Beijing Municipality

Liu Haifeng, deputy mayor of the Zhangjiakou Municipal People's Government, Hebei province, and deputy director of the Zhangjiakou Municipal Office for the 2022 Olympic and Paralympic Winter Games

Chairperson:

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

Date:

Jan. 13, 2022

Chen Wenjun:

Good morning, ladies and gentlemen. Welcome to today's press conference. The Beijing 2022 Olympic and Paralympic Winter Games are in place and will kick off in three weeks. Everyone is very concerned about how the green Olympics initiative has been implemented throughout the preparation process and what a green Olympics will look like. Today, we have invited relevant officials to attend the press conference to introduce the situation and take your questions. They are Mr. Li Sen, director general of the General Planning Department of the Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG); Ms. Yan Jiarong, spokesperson of the BOCOG; Mr. Liu Yumin, director general of the Planning and Construction Department of the BOCOG; Mr. Yu Bo, chief of Yanqing District of Beijing Municipality; and Mr. Liu Haifeng, deputy mayor of the Zhangjiakou Municipal People's Government, Hebei province, and deputy director of the Zhangjiakou Municipal Office for the 2022 Olympic and Paralympic Winter Games. Next, I would like to ask Mr. Li Sen to introduce the topic.

Li Sen:

Good morning, friends from the media. It is my great pleasure to introduce to you how China is delivering on its application promise of hosting a green Olympics. Here, I would also like to express my gratitude to our media friends for their attention and support to the preparations and sustainability of the Beijing Winter Olympics!

Now, everything is in place for the upcoming Beijing Winter Olympics. The venues and infrastructure have all met the requirements for hosting the competition, the venue-based operational model has been fully implemented, the service guarantees for the competition have been in place, and efforts of publicity have been boosted. In particular, a series of international test competitions have been successfully held, proving that the preparations are adequate. On Jan. 4, General Secretary Xi Jinping visited the Beijing competition zone to inspect the preparations, cordially encouraged the front-line personnel working at the venues, and gave important instructions for the preparation of the Olympics. His visit boosted our morale. As a result, we have strengthened our confidence and determination to hold the competition on schedule, safely, and successfully. We will go all out in the final stage according to the requirements of the general secretary to ensure a simple, safe and splendid 2022 Olympic and Paralympic Winter Games.

Sustainable development is China's national strategy and one of the three pillars of the Olympic Agenda 2020. Since preparing for the 2022 Winter Games, the BOCOG has stayed committed to hosting the Games in a green, sharing, open and clean manner. The BOCOG, the Beijing Municipal Government, the Hebei Provincial Government, and related parties have jointly formulated the Beijing 2022 Olympic and Paralympic Winter Games Sustainability Plan and proposed the vision of sustainability for the future and established the objective of creating a new example for staging events and regional sustainability. A working framework, including 12 actions, 37 tasks, and 119 specific measures, is constructed from three aspects: positive environmental impact, a new development for the region, and a better life for the people.

Over the past six years in preparing for the Games, we have worked hard to implement the green Olympics initiative in the whole process of preparations. We have closely integrated the preparations of the Games with the development of cities and regions, promoting the improvement of the regional ecological environment, economic development, and social progress and producing results of sustainability. I can summarize our work into the following five aspects:

First, we have established a sustainable management system. The preparation of the Winter Olympics is a complex project that requires standardized and systematic management. For the first time in the history of the Olympic Games, we have integrated three international standards. These are the sustainability management system for large-scale events, environmental management system, and social responsibility guidelines. In addition, we have established BOCOG's sustainable management system. As a result, we have effectively managed sustainable work in major venues and more than 50 work areas.

Second, we have created ecological competition zones. Given that the snow events will be mainly held in mountainous areas, measures have been taken to reduce the impact on the environment since we designed the venues. Before planning and designing, baseline surveys on the types and distribution of plants and environmental impact assessments were conducted. Protection measures were determined in terms of avoidance, mitigation, restoration, and compensation. The in-situ, near-situ, and ex-situ conservation measures have been taken for plants in the competition zones. We have employed multiple measures to reduce the impact on the animals in the competition zones, including setting up wildlife corridors, laying out artificial bird nests, and standardizing construction behaviors. At the same time, we have carried out ecological restoration. We have employed multiple ways to collect, store and recycle rainwater and snowmelt water to use water resources efficiently. The green mountains and clear waters of the competition zones have been protected through various measures. The goal of building venues surrounded by mountains and forests and hosting an ecological Winter Olympics has been realized.

Third, we have strictly implemented low-carbon management. We have made full use of the Beijing Olympic venues to reduce carbon emissions from the source. At the same time, we have built low-carbon stadiums, all of which have met the green building standards. Four ice stadiums have used new carbon dioxide refrigerants, making an ultra-low-energy project of more than 50,000 square meters. Low-carbon energy is fully utilized, and all the venues will be wholly powered by green energy. More than 80% of the vehicles during the Games will be energy-saving and clean energy vehicles to build a low-carbon transportation system. In addition, we have explored ways for carbon offsetting. The governments of Beijing and Hebei province contributed significant amounts of carbon sinks in the forestry industry. PetroChina, State Grid, and China Three Gorges Corporation sponsored carbon-neutral products for the Beijing Winter Olympics. With these efforts, we will make the Games carbon neutral.

Fourth, we have promoted urban and regional development. The six-year preparations for the Beijing Winter Olympics have witnessed Beijing and Zhangjiakou's rapid development. The preparations for the Winter Olympics have contributed to the development of the two places. The Beijing-Zhangjiakou high-speed railway and Beijing-Chongli Expressway were completed and went into services, the road network system was improved, and the transportation facilities were connected; the two places have coordinated in desertification control, water management, and gas management, and the regional environment has been significantly improved, realizing joint prevention and control of the regional environment; the construction of public facilities has been accelerated, and public services have been improved as a whole, realizing the joint development and sharing of public services. Several influential enterprises have settled in Yanqing and Zhangjiakou, and the development industries such as ice and snow and green energy have been accelerated and mutually reinforced. The Shougang Park in Beijing will become a "new landmark of urban revival," Yanqing will turn into a "most beautiful Winter Olympic City," and Zhangjiakou will be an "Asian ice and snow vacation destination." These three regions have become models of high-quality urban development promoted by the Winter Olympics.

Fifth, all preparations for the Games are aimed at benefiting the people. Raising people's living standards is an important part of sustainable development and also a natural result of the Winter Olympics. Over the past six years, seizing the development opportunities brought by the Games, Beijing and Zhangjiakou have accelerated the development of their infrastructure and facilities while fully improving public services. Industries related to winter sports have created more jobs for residents, made their lives easier and provided more development opportunities, thus improving people's sense of happiness and fulfillment. The promotion of winter sports has encouraged people to engage in sports and embrace a healthy lifestyle. Accessibility has been improved and a more inclusive society is quickly taking shape, helping people with disabilities to better integrate into society. Volunteer services are increasingly popular, which in turn contributes to a more civilized society.

Today, we would like to use this platform to release the Beijing 2022 Pre-Games Sustainability Report. The report summarizes our progress made on sustainability in preparation for the Games. The full text of the report is now available to download from the official website of Beijing's organizing committee. We hope you will check it out. The International Olympic Committee (IOC) and International Paralympic Committee (IPC) attached great importance and spoke highly of the report on sustainable development. President Thomas Bach and President Andrew Parsons have both sent congratulatory videos for the report.

That is the introduction. Thank you. 

Chen Wenjun:

Thank you, Mr. Li. Please watch the video by President Thomas Bach and President Andrew Parsons.

China.org.cn:

(Video playing)

Chen Wenjun:

We would like to thank President Thomas Bach and President Andrew Parsons for their heartwarming messages. Now the floor is open to questions. Please indicate the media organization you work for before raising a question. 

Asahi Shimbun:

After China won the bid to hold the Games, the number of people engaged in skiing began to rise, as did the number of ski resorts. To ensure the effective use of ski resorts, it is necessary to maintain the number of skiers. So after the Winter Paralympics, how will China continue to promote skiing? Thank you. 

Li Sen:

Thank you for your question. Promoting winter sports in China was one of the major goals for bidding and hosting the Winter Olympics and Winter Paralympics. Using the Games as a point of departure, China's winter sports have been growing rapidly in recent years. I'm not sure whether you have seen the latest statistics released by the General Administration of Sport of China, which show that 346 million people now participate in winter sports. By the end of 2020, China had built 654 standard ice rinks and 803 ski resorts of various kinds, both indoors and outdoors. The goal of "getting 300 million people involved in winter sports" has become a reality. Promoting winter sports is a long-term activity, not a short-term one. China has a huge population. Based on the population and development needs, the number of venues for winter sports is not that large. After the Games, such efforts will be strengthened and not be stopped. There will be ever greater achievements. Our most significant efforts are as follows:

First, policy guarantee. After we won the bid to host the Games, and since we started preparations for the Games, the policy environment for developing winter sports at the national and local level has been improving. There are a series of policies and measures. You may know that, at the national level, we released documents like the "Opinions on Vigorously Developing Winter Sports" and the "Opinions on Carrying out Healthy China Initiative," in which we outlined specific policies. At the local level, there are also some specific policies that a total of 26 provinces, autonomous regions and municipalities have now implemented. Take Beijing for example. The city released guidelines on promoting winter sports and seven supporting documents in terms of venue construction and popularization. Such policies will not come to an end after the Games. They are long-term policies and will be sustained well into the future. 

Second, cultivating young people. Young people are always the foundation and future of winter sports. Since we began preparations for the Games, with the joint efforts of education and sports authorities, we carried out activities that encourage millions of young people to participate in winter sports as well as the plan for winter sports on campus, which brings winter sports directly onto school campuses. This work is fundamental, as it integrates knowledge about winter sports into physical education curriculums. We formulated and implemented teaching plans for winter sports. Such measures will continue to be implemented at primary and middle schools. By 2020, we had 2,062 schools featuring winter sports and that number will reach 5,000 by 2025.

Third, venue and facility construction. Over the years, we have seen great progress in developing facilities across the country. After the Games, we will continue to promote the construction of venues and facilities, while also encouraging temporary facilities for winter sports in parks and urban squares, in line with local conditions. And we will also upgrade facilities and venues for winter sports, particularly the ski resorts that you have mentioned. We will improve the quality and service to meet people's varied needs for winter sports.

Fourth, winter sports activities. You may know that China has carried out a lot of winter sports activities in recent years, such as the National Public Ice and Snow Season and National Public Happy Ice and Snow Week. Many provinces and cities also have their own brand activities for winter sports, such as Beijing's "Happy Ice and Snow Season" and Zhangjiakou's public winter sports festivals. All these activities have become brand events for winter sports. These activities will not only continue after the Games but get even better.

Fifth, professional talent training. To meet the general public's needs for winter sports, local sports authorities are stepping up training for social sports instructors, or coaches for winter sports at the grassroots level. Beijing now has 23,000 instructors, while Zhangjiakou has more than 20,000. They have played an important part in promoting winter sports. After the Games, the number of such instructors will continue to grow, and they will provide more guidance in promoting winter sports.

All these measures will continue to promote the development of China's winter sports and meet the general public's needs for winter sports. Thank you.

CCTV:

In previous Olympics, there have been issues regarding post-Games use of the stadiums and venues and the use of unrenewable energy. What measures have been taken so that the 2022 Beijing Winter Olympics can tackle these issues? Thank you.

Li Sen:

Thank you for your good question. The utilization of venues after grand sporting events has been a difficulty across the globe. In this regard, we have been trying our best to deal with this problem throughout the process of bidding and preparation, and we will continue to do so after the Games are open. Six venues originally constructed for the 2008 Beijing Summer Olympic Games will be reused for the upcoming Winter Olympics. Based on the existing experience, we have made plans for using all newly-constructed venues after the Games. We have taken the post-Games use of venues into full consideration while planning and designing them. The costs can be reduced with coordinated planning and synchronized design. These arrangements can be summarized in the following aspects:

First, we will bid for and hold high-level sporting events at these venues and stadiums. The Beijing Winter Olympics will be held in world-class venues and stadiums. In preparing for the Games, the local sports authorities and the venue owners have established mechanisms to better communicate and cooperate with international winter sports organizations, which will enable us to continue to bid for and hold high-level international and domestic sporting events after the Winter Olympics, so as to boost stadium operations and promote the development of ice and snow sports.

Second, we will ensure that all those stadiums and venues are open to the public. They will not only hold competitive sporting events but also serve as places for the public to do physical activities. At the beginning of the planning and design of all the new Olympic stadiums and venues, we have given thorough consideration to their availability for the public after the Games. For example, the National Speed Skating Oval in Beijing, also known as the "Ice Ribbon," is an iconic venue with an ice surface of about 12,000 square meters. This is designed for the public's use in the future, as mainly the 400-meter outer track will be used in the long track speed skating. Moreover, its central part can be divided into two standard ice rinks and this is an innovation. The venue will allow 2,000 people to skate at any given time after the Games. Let's take another example, the National Bobsleigh and Tobogganing Center in Yanqing district, which hosts the world's 17th track for bobsleigh and tobogganing. These niche sports are relatively high-risk. So, we designed a special area in the lower region where the slope is gentler, making it possible for the public to experience this sport after the Games.

Third, we make efforts to ensure that the venues can be open year-round. Winter sports are sensitive to the seasons. Seasonality is not that obvious when it comes to ice sports, as most ice rinks are built indoors, and artificial ice is available all year round. In this regard, they can be open to the public or be used to hold grand sports events and leisure activities year-round. However, except in winter, it would be difficult to experience snow sports or hold such sports events in the snow sports venues in Yanqing and Zhangjiakou competition zones. Eyeing this, by taking advantages of their natural ecological conditions, we have made the venues that are located in the mountainous areas suitable for outdoor sports, such as jogging, cross country running, mountain biking, mountaineering and rock climbing. We have also stepped up efforts to boost the development of tourism, mountain resorts and the outdoor sports industry by making use of local cultural and historical advantages. Perhaps you've already been to the competition zone in Zhangjiakou. As a matter of fact, the Genting Snow Park there receives more visitors in spring, summer and autumn for leisure seeking than in winter for snow skiing.

Fourth, we make efforts to ensure the joint development of the venues and regions. The post-Games use of venues is not about the operation of a certain venue but to integrate its development with the development of local areas, which should be planned and materialized in an overall program. Take the Yanqing competition zone as an example, as the home of Winter Olympic venues, Beijing Expo Park and the Great Wall, it ramps up efforts to develop distinctive sports and cultural tourism, with developing integrated tourism as the main approach. Likewise, the Olympic venues in the Zhangjiakou competition zone are used in developing Zhangjiakou into a "Sports City" and a tourism destination in Asia for ice-and-snow tourism and resorts that receives visitors year-round and adopts an integrated approach in developing tourism. Moreover, we also step up efforts to promote synergies among the Olympic venues and winter sports resources in the three competition zones, and integrate them with the public ice and snow facilities and sports facilities, as well as the natural and cultural resources for tourism along the areas between Beijing and Zhangjiakou, so as to boost the development of the Beijing-Zhangjiakou sports and cultural tourism belt with the help of the Beijing-Zhangjiakou high-speed railway and the Beijing-Chongli Expressway, driving high-quality development of the surrounding areas. Such development synergies will thereby ensure that the Olympic venues will be used in a long-term, comprehensive and sustainable manner. Thank you.

TBS (Japan):

I have two questions. First, how much electric power is expected to be consumed during the Winter Olympics? Second, how much has been invested to make sure all energy consumed during the Winter Olympics are clean energy? Thank you.

Liu Yumin:

Thanks for your attention to the construction of the clean energy [system]. China has been contributing to building a community with a shared future for mankind and striving for sustainable development. We have made peak carbon emissions and carbon neutrality part of the overall development plans for an ecological civilization. We have followed the green Olympics ideas in the preparations. We utilize the host cities' advantages in terms of resources, and ensure power supplies for the Beijing Winter Olympics through the existing municipal power grids in the cities. In accordance with the national green power market trading rules, we have ensured that all venues are supplied with green power supported by the green power trading mechanism. By utilizing existing and previously planned power grids, we don't need to build new electric power facilities except for those transformer equipment and power distribution facilities which are necessary for the venues.

According to the calculations, all venues in Beijing, Yanqing and Zhangjiakou competition zones are expected to consume 400 million kWh of green electricity from June 2019 when the first green electricity transaction took place until the conclusion of the Paralympics. That will help save 128,000 tons of standard coal and reduce carbon dioxide emissions by 320,000 tons. 

Thank you.

Global Times:

Some Western media hype recently questioned if Beijing 2022 can meet green standards, alleging that it is hard to verify the green promises made for the Winter Games. What's your opinion on this? Thank you.

Yan Jiarong:

Thank you. As for the green standards you mentioned, I'd like to say that the Beijing Winter Olympics adheres to the standards set by the International Olympic Committee (IOC), as well as the sustainable standards set by the United Nations (UN). Beijing 2022 is the first Games that have implemented the Olympic Agenda 2020 throughout its bidding, preparing and hosting. It also plays an active role in meeting the UN Sustainable Development Goals. Upholding the principle to host a green Olympics, we strive to stage a sustainable Winter Games. There are many highlights in our efforts for Beijing's green Olympics, as Mr. Li Sen and Mr. Liu Yumin have just introduced. I'd like to add some more points. 

First, we have strengthened our strategic plans. Many foreign friends would say "you Chinese are good at long-term planning." The sustainability plan released by the organizing committee of Beijing 2022 and the IOC sets out a sustainable vision known as "Sustainability for the Future," and formulated 119 specific measures for positive environmental impact, new development for the region and better life for the people.

Second, we have adopted double-Olympic venues. As the other speakers said just now, we have made the best use of existing venues and facilities, which is another highlight in preparing for Beijing 2022. The National Stadium, dubbed the "Bird's Nest," will stage the opening and closing ceremonies of the Winter Games. The National Aquatics Center, known as the "Water Cube" during the 2008 Olympics, has become an "Ice Cube." The Wukesong Sports Center will be transformed for ice hockey events from a basketball stadium.

Third, we have implemented low-carbon emissions. Beijing 2022 has adopted multiple measures like low-carbon venues, low-carbon energy and low-carbon transportation to cut carbon emissions in preparing for and hosting the events, and achieve the ambitious goal of neutralizing all the carbon emissions generated during Beijing 2022.

Fourth, we have issued demonstrative standards. Beijing and Hebei province have jointly worked out the Evaluation Standards for Green Snow Venues as the green building standards for Winter Olympic snow venues, filling the gap at home and abroad. The sustainability management system of Beijing 2022 is unique to the Winter Olympics by integrating international standards including ISO20121, ISO4001 and ISO26000, making it the first of its kind in Olympic history to cover all the fields and scope in preparation for the Games. I believe it will set a good example for big events like the Olympics in the future. Thank you.

BRTV:

Reusing legacy venues from the Summer Olympics is a big characteristic of the Beijing 2022 Winter Olympics and Paralympics. Could you introduce how Beijing is making use of the venues from the Beijing 2008 Summer Olympics? Thank you.

Liu Yumin:

Thank you for your question. Beijing 2022 has made the most of the venue legacies from Beijing 2008. As Ms. Yan put it just now, the National Stadium, a venue for the opening and closing ceremonies of the Beijing 2008 Summer Olympics, will be reused to stage the opening and closing ceremonies of the 2022 Winter Olympics and Paralympics. The National Aquatics Center, also known as the "Water Cube," will become the "Ice Cube" for curling and wheelchair curling competitions. The National Indoor Stadium and the Wukesong Sports Center, two venues from Beijing 2008, will be reused for ice hockey competitions during the Winter Olympics. In addition to reusing these venues, we also have some legacy land from Beijing 2008. For example, we have transformed a temporary hockey field from the 2008 Games into a speed skating venue for the Winter Olympics. The lands for the Beijing Winter Olympic Village and the major media center were reserved in 2008. Moreover, regarding urban infrastructure, we have used a great deal of legacy infrastructure from Beijing 2008, including subway line 8 and line 10 as well as the corresponding power transformation and distribution facilities and water plants, to guarantee the Winter Olympics.

These reuses, especially the transformation of existing venues, are not a simple functional change. In fact, we still retained their original functions while injecting new functions for winter events. For example, the "Water Cube" can still be used as a swimming center after the Games, and the curling venue can be converted from ice to water in a few days. The reuse of venues, I think, is not a simple repetition, but rather to expand their functions, which is also a highlight of reusing the existing facilities. Thank you.

CAN:

I have two questions. There have been some concerns raised about large amounts of artificial snow being used for the Games and the impact this will have on water resources and energy as well. What is your response to this? My second question is also, given that there are many environmental initiatives are being tested at the Olympics, what steps are being taken to ensure these measures are not just short-term but to yield long-term results? Thank you.

Yan Jiarong:

Firstly, I'd like to answer your question about artificial snow in two aspects. The leader of Zhangjiakou will elaborate on the city's situation later. Regarding your second question about the environment and how to ensure the sustainable measures we adopted are a medium and long-term action instead of short-term efforts, I believe one of the directors general may give you a better answer.

As for the artificial snow, first of all, I would tell you that judging from the water consumption for the artificial snow, Yanqing and Chongli mountain area where the snow events for the Beijing Winter Olympics are mainly situated have abundant natural snowfall due to their unique climate conditions. In November 2021, there was large-scale snowfall in these two places that reached categorical blizzard levels, providing a prerequisite for cutting the amount of water used for artificial snow. In terms of actual water consumption, the water demand in the Yanqing competition zone during the Games accounts for 1.6 percent of the current total local water consumption, and 0.4 percent of local water resources. The water demand in the Zhangjiakou competition zone during the Games accounts for 9.8 percent of Chongli District's total water consumption and 2.8 percent of its water resources. Moreover, we have worked out measures to ensure water supply security, sewage treatment and water conversation so as to improve the carrying capacity of the competition zones' water resources and water environment. The ski fields also give priority to using collected and reserved natural rainfall and overland runoff as their water source for artificial snow. Our artificial snow system has adopted the world's most advanced efficient water-saving equipment and intelligent snowmaking system, which can maintain an optimal snowmaking efficiency subject to the dynamic external environment, to effectively avoid the waste of water resources. On the whole, artificial snow requires limited water and will not affect the local water security and ecological environment.

On the other hand, I want to point out that snowmaking is not entirely an emergency measure to cope with weather conditions. It is an objective requirement to ensure the quality of snow used in major international competitions. If we look at snow sports events around the world, snowmaking is adopted in almost all major international competitions to ensure the quality of snow. It is because compared with natural snow, the particle size, the water content, and the hardness of artificial snow can be changed. This way, it helps fit the needs of different competition venues and has more stable properties than natural snow. It is easier to make trails with consistent conditions after being compacted, smoothed and injected with water. Such courses can ensure fairer games to some extent.

Thank you.

Liu Haifeng:

Thank you for your attention to and care for snowmaking and water consumption in the Zhangjiakou competition zone. Let me add some words to it. Like Ms. Yan said just now, snowmaking is an important, fundamental work to ensure stable trails and fair competition conditions for athletes no matter in what order they will start. According to international practice, no matter what the weather is like in the host place, snowmaking is needed to make trails fit competition venues' technical specifications and requirements. According to searchable records, Lake Placid, Vancouver, Sochi, and Pyeongchang Winter Olympics used lots of artificial snow. Up to 90% of the snow used in the 2018 Pyeongchang Winter Olympics was artificial. Not long ago, we held the freestyle skiing and snowboard cross events of the 2021/22 FIS World Cup in Zhangjiakou, and up to 60% of the snow used in the trails in the Genting Snow Park was artificial. In a review after the events, the quality of the courses during the events was extensively recognized and praised by athletes from all countries.

To ensure snow services during the Beijing Winter Olympics, the Zhangjiakou competition zone has taken multiple precautionary measures and started preparing for snowmaking early. By collecting surface runoff and snowmelt, we have made advancements in water usage for snowmaking and eco-environment protection. Our efforts have been mainly embodied in three aspects: water conservation, water storage, and water-saving. In terms of water conservation, we have advanced eco-environment development in preparation for the Winter Olympics, with significant efforts in vigorous afforestation. As a result, the forest coverage of Chongli district has increased from 52.38% when the preparation started in 2015 to 71.53% today. The rate is already as high as 81.02% in the core area of the competition zone. Therefore, it can be said that our efforts have effectively conserved water. In terms of water storage, because of the excellent eco-environment and rich surface runoff in the Zhangjiakou competition zone, we have built 11 open reservoirs, underground snowmelt pools, and little landscape lakes among venues in the Genting Snow Park and Guyanshu venue clusters, totaling 530,000 cubic meters of water storage. These measures provide vital support in supplying water to make snow.

In terms of water saving, the two-venue clusters have adopted efficient, intelligent, and water-saving snowmaking systems and equipment that can dynamically maintain the most appropriate efficiency along with the changes of external environment. With this equipment, facilities, and smart system, we can save approximately 20% water. The reality has proven that all these measures have worked well and can fully meet the water needs for the snowmaking of all the Winter Olympic venues. Thank you.

Li Sen:

Your second question is how green technologies in staging Olympic events have been made more sustainable in practice. Green and environmentally friendly technologies have been widely used in the Winter Olympics, and there are many highlights in this respect. The previous speakers have briefed on it just now from various aspects, including the building of low-carbon venues, the adoption of carbon dioxide refrigeration technology in four ice rinks, and the construction of over-50,000-square-meter projects with ultra-low energy consumption—all these set good examples for developing low-carbon buildings to some extent.

We have realized the low-carbon energy supply. In other words, we have established the pilot demonstration project of Zhangbei renewable energy flexible DC power grid, which has ensured the integrated delivery of clean energy to the outside and ensured that the regular electricity demand of all the Winter Olympic venues is met by renewable energy. We have developed a low-carbon transportation system, which will ensure the use of clean energy vehicles during the games. In terms of competition zone protection, Ms. Yan mentioned the standards just now. All these are highlights of our innovative measures in terms of Winter Olympic technology, which will make immediate contributions to our urban and regional development and people's lives in the future, and has long-term benefits and promotional value. Some existing technologies that can be directly used for urban development, the Zhangbei flexible DC power grid, for example, will transmit renewable power resources to Beijing and its Yanqing district, and as a result, increase the proportion of renewable power resources used in Beijing and help China reduce carbon emissions and achieve peak carbon emissions and carbon neutrality. We use many clean energy vehicles, such as hydrogen and electric ones. These have boosted the development of relevant industries and will continue to be promoted and used after the games in our cities. Another point is the commercialization of scientific and technological achievements. We have many significant scientific and technological gains in our preparations for the Winter Olympics, especially in the construction of venues. For example, there are many innovative outcomes in green building, which will be applied to other venues and infrastructure in the future. Carbon dioxide refrigeration technology is one of them. It can be used in venues for ice sports and some large refrigeration facilities in the future in a safe, stable, reliable, and energy-efficient way.

We set long-term standards because there were no green building standards for snow sports venues before, be it in China or abroad. Therefore, to build more environmentally friendly and more sustainable venues for snow sports, Beijing, Hebei, and Tianjin have brought together their planning and construction and other relevant authorities to establish the standards for evaluating green snow sports venues. As a result, the standards have become a local yardstick in these three localities and will serve as a regulative guide for the future construction of snow sports venues. As for the sustainability management system for major events mentioned by Ms. Yan just now, we have worked with relevant departments in Beijing to transform it into a guide for assessing the sustainability of major events. Turned into a local guiding criterion, it will offer a regulative guide to hosting major events and competitions.

Thank you.

Beijing Youth Daily:

My question is about urban and regional development. Since China won the bid to host the 2022 Winter Olympic Games in 2015, many villages around the competition zones, such as Yanqing district in Beijing and Chongli district in Zhangjiakou, have boomed thanks to the Winter Olympics. With the construction of significant infrastructure, hotels, and venues, many changes have been made in these villages as well as to the life of their inhabitants. Are these changes sustainable? How can you demonstrate this? Thank you.

Yu Bo:

Thank you for your question and your concern about the work of the Yanqing competition zone. The Winter Olympic Games have indeed brought great changes to and played a driving role in the development of the surrounding areas, promoting Yanqing to speed up the construction of the most beautiful Winter Olympic City. In terms of achievements, Yanqing has made notable progress in the construction of infrastructure. The Beijing-Chongli Expressway and Yanqing branch line of the Beijing-Zhangjiakou high-speed railway have been completed and opened to traffic. Yanqing has completely broken transport bottlenecks through three expressways and a high-speed railway. Meanwhile, the energy structure of Yanqing district has also undergone profound changes through leapfrogging development of power infrastructure and the construction of its first gas pipeline. Notable progress has been made in industrial development. Yanqing has built world-class Olympic venues and pooled abundant ice and snow resources. Yanqing also has built many international brand hotels, with 18 star-rated hotels and nearly 12,000 beds. Meanwhile, Yanqing has created a homestay brand named "Yanqing Household" with more than 500 courtyard homestays and more than 1,000 star-ranked homestays managed in an orderly manner. The ice-snow tourism industry has grown significantly. Houheilongmiao Village, in the surrounding area of Yanqing district, has grown from a typical low-income village into a national key village for rural tourism. Employment has boomed, and income has increased significantly. We have provided training programs for 100,000 people, helping over 7,000 people find better quality jobs in the local area. We set up the Haituo Farmer Ski Team, with most of its members coming from Zhangshanying village near the competition zone. It now has nearly 100 farmer-turned ski members, of which more than 30 have obtained qualification certificates recognized by professional organizations and become professional ski coaches, referees, and athletes. This enabled local farmers to truly take ice and snow sports as a career, making a good start for local employment and income increases.

In terms of sustainable development, we have formulated the implementation plan and task list of post-competition utilization and industrial development with a high starting point and high standard, and all works have been conducted in an orderly manner. The Yanqing Olympic Zone has been officially approved by the International Olympic Committee (IOC) and will open to the general public in May 2022. The Yanqing Haituo Mountain area has been selected as one of the first national ski vacation destinations. We will continue to speed up the construction of the most beautiful Winter Olympics City, ensure development dividends brought by the Winter Olympics will benefit the people of Yanqing, and make efforts to build Yanqing into a paragon in Winter Olympics heritage utilization. Thank you.

Liu Haifeng:

Thank you for your question. Let me introduce the details of Zhangjiakou city. As you have mentioned, the Winter Olympics has brought about earth-shaking changes to the lives and work of the local people. This is mainly manifested in the following three aspects:

In terms of the living environment, the ecological environment has continued to improve. The Beijing-Zhangjiakou high-speed railway and the Beijing-Chongli Expressway have opened to traffic. Municipal facilities and the appearance of urban and rural areas have also been comprehensively upgraded. Chongli has witnessed tremendous changes and greatly enhanced people's sense of gain.

In terms of living standards, according to incomplete statistics, one out of every five people in Chongli is currently engaged in ice and snow-related work, and more than 30,000 people are participating in the ice and snow and tourism industry directly or indirectly, ensuring that people get a stable job and has greatly improved their quality of life.  

On a spiritual level, Chongli, as a city of the Winter Olympics, has become more and more closely connected with the international community, enabling people to have a stronger sense of pride and honor. It has created a positive atmosphere in which people participate spontaneously in building their beautiful hometown and actively serving the Winter Olympics. To make the dividends of the Winter Olympics benefit more people in a sustainable way is also the goal and direction of our work. In the next step, we will fully utilize the resources of the Winter Olympics.

First, we will take the initiative to plan the use of the venues after the Winter Olympics. The Zhangjiakou municipal government has identified 2022 as the year to promote the Olympic economy. We will implement a number of iconic, leading, and influential conventions, exhibitions, and forums with the aim of building Chongli into an international ice and snow tourism destination and high-end convention and exhibition center. At present, the "three venues and one Olympic Village" have signed cooperation agreements with relevant enterprises. We will hold more than 30 sports events and exhibitions throughout the year. Taizicheng Ice and Snow Town has also reached a cooperation intention on convention and exhibition with the relevant institutions in Beijing. We will hold high-level forums such as the "Arc of Ice and Snow" Chongli Summit this year. We will strive to turn the Olympic effects into economic benefits by vigorously developing new forms of business such as sports events, exhibitions, and forums. 

Second, we will vigorously enhance the role of snow and ice sports. We will continue to give full play to the leading role of the Winter Olympics cities. While making full preparations for various events, including the fourth Ice and Snow Games in Zhangjiakou, we will introduce a number of high-level domestic events to gather resources and popularity. We will further improve the development system of snow and ice sports, promote the popularization of snow and ice sports, and ensure that more than 2 million people participate in snow and ice sports during the whole snow season.  

Third, we will actively cultivate new business forms, which can increase people's income. We will adhere to integrated development guided by sports, empowered by culture, and driven by tourism. We will create a number of representative and influential tourism routes for the purposes of sports and leisure, study and team building, and health and wellness, promoting the integrated development of sports, culture, and tourism industries. This year, we will focus on improving leisure consumption infrastructure. We will actively introduce a number of chain stores and specialty restaurants, vigorously promote Olympic licensed products and Chongli's menu of Winter Olympics delicacies, and promote new forms of rural tourism such as characteristic homestays and specialty restaurants. We will strive to ensure that people have more stable jobs, increase income and become richer. Thank you.

Beijing Daily:

All venues will be powered by green electricity during the 2022 Winter Olympics, the first time in Olympic history. Where does the green electricity come from? How to ensure the safety and stability of green electricity? What technological breakthroughs have been made, and what is the current state of power operations? Thank you.  

Liu Yumin:

Thank you for your interest in green power. Green power is also known as green electricity, which refers to electricity converted from renewable energy by means of wind, hydropower and solar photovoltaic. During Beijing 2022, all venues will be powered by green electricity. The realization of green electricity is largely thanks to three aspects:

First, in terms of clean energy distribution, the green power supply for the Beijing Winter Olympics benefit from the coordinated development of the Beijing-Tianjin-Hebei region. Among the three competition zones, Zhangjiakou and Yanqing have abundant clean energy reserves. When visiting, you can see that there are many big windmills around the Guanting Reservoir in Yanqing, as well as in Zhangjiakou. These are wind power generation facilities that were built more than 10 years ago. In 2008, the Guanting Reservoir wind farm achieved a wind power generation breakthrough in Beijing for the first time. According to our calculations and estimates, Zhangjiakou's exploitable wind energy reserves exceed 40 million kilowatts and the exploitable solar energy resources reach 30 million kilowatts. In addition, the annual output of biomass resources is more than 2 million metric tons. So the reserves of renewable energy are very sufficient, which guarantees the supply of green electricity for the Winter Olympic venues.

Second, regarding the infrastructure integration, Mr. Li Sen just mentioned that the 500 kV flexible DC power grid in the Beijing-Tianjin-Hebei region has adopted many new, world-class technologies, as well as pioneered various other technologies. The DC grid network boasts the highest voltage level and the largest transmission capacity in the world. Through this power grid, we can transmit the green power from Zhangbei county to every venue across the three competition zones with minimal loss.

Third, during the operational processes, we have also achieved a complementary and coordinated system based on multiple energy sources. The surplus electric energy on the DC grid will be transported to the Fengning Pumped Storage Power Station constructed by the State Grid, one of its existing power facilities. When the demand for electricity becomes high, Fengning Pumped Storage Power Station will send the stored electricity to the grid, which is akin to backing up a large "power bank" for the entire network. Through energy complementation and coordination work, the power security of the Winter Olympic venues is guaranteed. Thank you.

Cover News:

The Yanqing competition zone has a special environment and is ecologically sensitive. As such, balancing the relationship between the construction of venues and the natural ecology poses a challenge for sustainable development. How can the Yanqing competition zone protect its ecology while undergoing construction? Likewise, ecological restoration work has been going on in the Yanqing competition zone. What is its current progress? Thank you.

Yu Bo:

You raised a very good question, and this is also a problem that we've been working to solve. The highest elevation within the core area of the Yanqing competition zone for the Winter Olympics is 2,198 meters above sea level while the lowest elevation is more than 300 meters. In the early stage of construction, the core area of the Yanqing competition zone was a mountainous area with no roads, no water, no electricity and no communication facilities. Transportation relied entirely on manpower, mules and horses. It was the most difficult to build among the three major zones of the Beijing Winter Olympics. In order to ensure sustainable development, the Yanqing competition zone has always adhered to the concept of "green Olympics," and the concept that lucid waters and lush mountains are invaluable assets throughout the entire process of venue construction. Ecological protection and the construction of the Winter Olympic projects have moved forward together. The construction took six years, however, the core design concept of "venues built among mountains and forest for an ecological Winter Olympics" became a reality from that blueprint.

First, we have completed the ecological restoration of the competition zone with a high standard. We hired an advisory group including 18 experts and professors from Tsinghua University and Beijing Forestry University, which is headed by Qian Yi, an academician at the Chinese Academy of Engineering. The group is divided into three panels: one for vegetation and landscape restoration, one for geological disasters and soil and water conservation, and another for hydrology and water environment. They conducted a baseline survey on flora and fauna resources in the competition zone as well as the 2,000-hectare surrounding area, and supervised and guided the ensuing ecological restoration work in the Yanqing competition zone. At present, the ecological restoration of the 2.16 million square meters of the Yanqing competition zone has been completed. The native trees have settled in their original place, the pristine subalpine meadows have returned, the wildlife corridors have been effectively established and the ecological environment of the competition zone has been wholly restored.

Second, animals and plants are well protected. In terms of plant protection, the venue construction adheres to the principle of "avoidance." We tried our best to protect and preserve the existing native trees on the site, and make way for natural secondary forests in the design of ropeways; in the case that the construction couldn't avoid the native plants, we resorted to near-situ and ex-situ conservation measures. In the competition zone, a total of five in-situ conservation areas were built, and 313 trees were preserved; two near-situ conservation areas were built, and 11,000 shrubs and grasses were transplanted there; an ex-situ conservation base of 300 mu and the Winter Olympic Forest Park covering an area of 480 mu were built, with 24,000 trees transplanted there. The survival rate of the transplanted trees is 90.7%. At the same time, we carried out topsoil stripping across 81,000 cubic meters. After construction was completed, the sites were covered by the original soil and the original appearance has been restored, so as to preserve the seed bank to the greatest extent and reduce the risk of biological invasion. In terms of animal protection, during the construction process, we established or left open wildlife corridors, reduced nighttime construction, installed artificial nests, and restored and rebuilt animal habitats. If we found newborn or injured wild animals, we took care of them in a timely manner. Since 2019, wild animals such as boars, badgers and gorals have been spotted many times around the competition zone, and in 2021, infrared cameras captured more than 14,000 valid photos and videos, monitoring and spotting 11 species of mammals – an increase of one species from 2019 – and 18 species of birds – an increase of six species from 2019. At present, there are 452 species of terrestrial wild animals from 95 families of 30 orders, which are distributed throughout Yanqing district, including 392 species of birds, 38 species of mammals, and 22 species of amphibians and reptiles. The ecological environment continues to improve, becoming the home of various wild animals and plants.

Third, we have promoted green and low-carbon recycling. All venues in the competition zone meet the three-star standard for green buildings. We promoted low-carbon management. For the first time in the history of the Olympic Games, all venues will be powered by green electricity. We promoted green transportation for the venues and more than 200 hydrogen energy buses have been delivered for use and will be put in the transportation service during the Games. We promoted the recycling of water resources so that reclaimed water that meets the standards after treatment can be used for road watering, green irrigation, toilet flushing, etc., which significantly improves the efficiency of water resource use. The Yanqing competition zone fully embodies the concept of "green Winter Olympics" and "low-carbon Winter Olympics."

Thank you.

China Arab TV:

Beijing has implemented environmentally-friendly technologies in transportation, electricity supply, and water and waste management to ensure a green Olympic Games, all of which set a big example for foreign countries to follow. What are the major challenges facing all of these preparations? Thank you.

Li Sen:

Thank you for your question. As you've mentioned, the "Green Olympics" is one of the four concepts that we are following to host the Winter Games. We have adopted many related technologies in terms of transportation, electricity supply, and water and waste management. My colleagues also spoke about this topic just now.

For example, we have managed to achieve low-carbon transportation. Beijing's competition zone is situated in the plains region, and vehicles there are either fully electric or powered by natural gas. Meanwhile, those in the Yanqing and Zhangjiakou competition zones are mainly powered by hydrogen fuel to meet the transport conditions of mountainous regions. Almost all passenger cars and nearly 80% of all vehicles are energy efficient or powered by clean energy. In terms of electricity supply, Mr. Liu made a detailed introduction just now. We managed to realize a 100% renewable electricity supply by transmitting renewable energy to the competition zones in Yanqing, and other competition zones in Beijing. This has also improved the local region's capacity for utilizing renewable energy.

In terms of water, we use surface water for snowmaking in Yanqing and Zhangjiakou competition zones, and the water is collected by harvesting rain and melting snow. Both of these competition zones are equipped with high-standard domestic sewage treatment facilities which will comprehensively collect and process sewage, then it can be reused.

As for waste management, following the principle of reducing waste at the source, recycling waste into resources and managing waste in a unified way, we have implemented unified management measures and garbage sorting. In fact, the management of waste is based on different stages. For example, for waste issues that occurred during the construction process, some of the rocks in the mountainous area in Yanqing could be directly used to make gabion walls and pave roads. Likewise, several once-deserted pile heads produced during the construction of the National Speed Skating Oval were reused as raw materials to build the stands of the Oval. As for recycling waste during the Games, we will follow the unified standard for waste management and strictly enforce garbage sorting. The collection, transportation, sorting and processing of waste will be conducted in a standardized manner.

All these eco-friendly measures for Beijing 2022 not only meet the requirements of hosting a "Green Olympics" and ensure a high-standard Games but also play a proactive role in future developments, including the development of cities and industries as well as people's wellbeing.

Today marks the 22-day countdown to Beijing 2022, and all preparation work is put in place. Regarding your question about the challenges, we believe that we have the capacity to host the Games as planned. We launched a domestic test series of snow and ice sports last February and April respectively and hosted a total of 10 test events for global athletes from last October to December. These test events are a testament to our eco-friendly measures including green energy vehicles, renewable electricity supply, water recycling and waste management, and prove that our technologies are very stable and reliable and meet the standards of hosting the competition. Thank you.

Chen Wenjun:

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

Southern Metropolis Daily:

We've learned that Beijing adhered to the principles of low-carbon and energy-efficient in constructing the Winter Olympic Village, and all the residential buildings have been certificated as three-stars green buildings. How were these buildings created? Were their construction costs high? Will the technologies be applied to other public facilities? Thank you.

Liu Yumin:

Thank you for your questions. A green building is a building that saves resources, protects the environment, and reduces pollution during its whole life cycle while providing people with healthy, suitable, and efficient space to realize the harmonious co-existence between man and nature to the most significant extent. A green building has characteristics of safety and durability, health and comfort, convenience, resource conservation and livability. Therefore, it is an essential measure for peak carbon and carbon neutrality in the construction industry.

In China, three stars are awarded to the highest-rated green buildings. China attaches great importance to developing green buildings and vigorously promotes green building practices. As with many other countries, China has included green building requirements into the general requirements for urban construction. Though standards differ among countries, the construction costs of the green buildings in the Winter Olympic Village all fall within a reasonable range. Therefore, the buildings are economical and meet the requirements for sustainable development.

We coordinated the construction of venues for Beijing 2022 throughout all procedures, including site selection, design and material selection, to fulfill the criteria of being both economical and effective. As a result, as Mr. Li Sen mentioned, all the newly-built indoor venues for the Games have met China's standards of three-stars green buildings.

Whether in China or other countries, most green building standards are formulated for indoor buildings. However, many Winter Olympic venues are outdoor buildings, including those constructed on snow. Therefore, we organized experts to develop a green building standard for sports venues on snow in Beijing, Tianjin, and Hebei province in the early construction process. Up to now, all the venues have met the standard. This regional standard has promoted the construction of green buildings for the Games and contributed to the development of the Winter Olympics in China and relevant international standards. It will also become a legacy of the Beijing Winter Olympics.

The Winter Olympic Village in Beijing has adopted many new green technologies. For example, the main residential building in the village adopts a prefabricated steel structure. This aseismic structure is light, environmentally friendly, and quick to build. It is also easy to control its quality.

A polyclinic needs to be set up inside the village according to the requirements. Therefore, this medical facility adopts a building envelope with greater thermal insulation and airtightness as a demonstration project of ultra-low energy-consuming buildings. In addition, highly efficient fresh air heat recovery technology helps minimize the need for heating and cooling the building while making good use of renewable energy.

The sound insulation and air quality of the interior spaces such as bedrooms and living rooms have been optimized to create a healthy and comfortable environment.

The roof of the building can host various outdoor activities. It helps improve the microclimate and offers the "Fifth Façade" for the urban environment. At the same time, solar panels installed on the roof can supply more than 70% of residential hot water.

We pay special attention to controlling carbon emissions during the construction and operation of the venues. We selected low-carbon materials and equipment through Building Information Modeling (BIM) analytics. With the help of an energy consumption monitoring platform, we coordinated carbon emission information across the village.

It is fair to say that the Winter Olympic Village has become a model living environment project, which is green, healthy, livable, intelligent, and sustainable. It can provide a healthy and comfortable living environment for athletes from all over the world and set an example for the development of the construction industry. The above-mentioned green building requirements have become part of the general requirements of China's construction industry. The technologies I mentioned just now will continue to be used in urban construction. As technologies mature and upgrade, I believe green buildings will play a bigger role in improving venues and urban construction.

Thank you.

Chen Wenjun:

Thank you to friends from the media and all our speakers. Today's press conference is with this concluded.

Translated and edited by Cui Can, Chen Xia, Gong Yingchun, Liu Sitong, Dong Qingpei, Zhang Junmian, Zhang Rui, Huang Shan, Zhu Bochen, Wang Yanfang, Zhang Liying, Li Huiru, Wang Qian, Wang Yiming, Yuan Fang, Duan Yaying, Yang Xi, Zhang Jiaqi, David Ball, Jay Birbeck, Tom Arnstein and Drew Pittock. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Hu Wenhui, deputy commissioner and spokesperson of the China National Intellectual Property Administration (CNIPA), and director general of the CNIPA's General Affairs Office

Ge Shu, director general of the Strategic Planning Department of the CNIPA

Zhang Zhicheng, director general of the Intellectual Property Protection Department of the CNIPA

Lei Xiaoyun, director general of the Intellectual Property Utilization and Promotion Department of the CNIPA

Chairperson:

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

Date:

Jan. 12, 2022

Xing Huina:

Friends from the media, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we will brief you on statistics concerning intellectual property and take your questions. At this press conference, we are joined by Mr. Hu Wenhui, deputy commissioner and spokesperson of the China National Intellectual Property Administration (CNIPA), and director general of the CNIPA's General Affairs Office; Mr. Ge Shu, director general of the CNIPA's Strategic Planning Department; Mr. Zhang Zhicheng, director general of the CNIPA's Intellectual Property Protection Department; and Ms. Lei Xiaoyun, director general of the CNIPA's Intellectual Property Utilization and Promotion Department.

Now, let's give the floor to Mr. Hu for a brief introduction.

Hu Wenhui:

Friends from the media, good morning. Thank you for your consistent attention and support for the work concerning intellectual property.

In 2021, all government bodies and departments involved in intellectual property work across China followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implemented the guiding principles of the 19th National Congress of the Communist Party of China (CPC) and all plenary sessions of the 19th CPC Central Committee, and earnestly carried out the CPC Central Committee and the State Council's decisions on building China's strength in intellectual property as well as the 14th Five-Year Plan. We strive to pursue progress while ensuring stability and continue advancing reform and innovation. As a result, China's intellectual property work in 2021 has improved in terms of both quality and quantity, and all tasks and targets in the sector have been fully accomplished, providing strong support for people's pursuit of a better life. Based on all categories of statistics, our work in 2021 has the following four characteristics:

First, the innovation capacity and vitality of market entities have been further stimulated. As of the end of 2021, the number of domestic enterprises with valid invention patents amounted to 298,000, an increase of 52,000 over the previous year. These domestic enterprises had a total of 1.91 million valid invention patents, up 22.6% year on year, 5 percentage points higher than the national average growth rate. Specifically, valid invention patents held by high-tech enterprises reached 1.21 million, accounting for 63.6% of the total held by domestic firms. This reflects the growing creativity and innovation capacity of China's market entities.

Second, the pledge financing of patents and trademarks has seen a further increase in scale and become even more inclusive. The total amount of patent and trademark pledge financing in 2021 amounted to 309.8 billion yuan, and the number of financing projects in the field reached 17,000, benefitting a total of 15,000 enterprises. All three factors have increased about 42% year on year. Specifically, inclusive loans under the 10-million-yuan limit have benefitted 11,000 enterprises, accounting for 71.8% of the total firms benefitted. This fully demonstrates the inclusiveness of patent and trademark pledge financing in helping micro-, small- and medium-sized enterprises. 

Third, patent reserve in digital economy and medical sector has been further improved. Among the 35 fields of technology classified by the World Intellectual Property Organization (WIPO), IT methods for management, computer technology and medical technology rank as the top three fields in China with the fastest growth rate of the number of valid patents, up 100.3%, 32.7% and 28.7%, respectively, year on year. This shows China's growing capacity in patent reserve of core technologies, which will provide stronger support for the country's industrial upgrading and better benefit people's health and daily life.

Fourth, foreign enterprises have stronger confidence in China's protection of intellectual property. In 2021, a total of 110,000 invention patents were approved and authorized for overseas applicants in China, up 23% year on year. Overseas applicants registered a total 194,000 trademarks in China, up 5.2% year on year. Among them, authorized invention patents and registered trademarks applied for by U.S. enterprises increased by 32.1% and 17.3%, respectively. The number of intellectual properties held by overseas applicants in China keeps growing fast, indicating overseas enterprises' strong confidence in China's intellectual property protection and business environment.

These are the four characteristics of data on intellectual property in 2021. Specifically, the overall statistics on the creation, protection, utilization and relevant services of intellectual property in the aspects of patents, trademarks, geographical indications, and layout designs of integrated circuits by the end of 2021 are as follows:

First, patent. The number of valid invention patents from China reached 3.597 million, while the number on the Chinese mainland stood at 2.704 million. The number of high-value invention patents per 10,000 people reached 7.5, up by 1.2 from the previous year.

In 2021, the number of international patent applications filed in China via the Patent Cooperation Treaty (PCT) hit 73,000, while the number on the Chinese mainland reached 68,000. A total of 54,000 patent reexamination cases and 7,100 declarations of invalidation cases were closed. 

Second, trademark. The number of valid registered trademarks reached 37.24 million.

In 2021, China received 5,928 international trademark applications using the Madrid System. China has reviewed 164,000 trademark opposition cases, as well as 383,000 trademark review cases. 

Third, geographical indication (GI). China has approved 2,490 GI products and has seen 6,562 GIs registered as collective trademarks and certification trademarks. 

Fourth, integrated circuit layout design. A total of 52,000 integrated circuit layout designs were certificated.

Fifth, intellectual property application, protection and services. To date, China has established 57 intellectual property protection centers and 30 fast intellectual property service centers. The National Advisory Center for Overseas Intellectual Property Dispute Settlement has been established, with a total of 22 branch centers at the local level. 

In 2021, a total of four batches of 815,000 abnormal patent applications were identified. The withdrawal rate of the first three batches reached 97%. China has cracked down on 482,000 filings of malicious trademark registration.

Statistics show that, before excluding the price factor, the added-value of China's patent-intensive industries reached 12.13 trillion yuan in 2020, a year-on-year increase of 5.8%, accounting for 11.97% of GDP, 0.35 percentage points higher than last year.

By the end of 2021, the "one window" system for patent and trademark business was made available in all 31 provinces (autonomous regions and municipalities). The number of intellectual property information public service institutions at the provincial level reached 52, and that of city-level comprehensive intellectual property information public service institutions reached 104.

That is all for my introduction. We would now like to answer your questions. Thanks. 

Xing Huina:

Thank you, Mr. Hu, for your introduction. Now it is time for questions. Please indicate the media organization you work for before raising a question. 

CCTV:

In recent years, China has strengthened its work on patent and trademark pledge financing to support small- and medium-sized enterprises (SMEs). SMEs represent the "capillaries" of the national economy, and they have been under tremendous pressure amid the COVID-19 pandemic. We would like to know, over the past year, what work has the CNIPA done to support SMEs? Thanks.

Hu Wenhui:

Thank you, I will answer your question. To support SMEs and mitigate their difficulties, CNIPA has worked with related departments to issue, promote and implement a series of policies and measures, which provide strong support for the innovative development of SMEs in terms of cultivating entities, financing, transfer and application and improving services. These works are as follows:

First, we have expanded the intellectual property pledge financing work to mitigate the difficulties SMEs have faced in accessing financing. CNIPA, the China Banking and Insurance Regulatory Commission, and the National Development and Reform Commission launched the three-year campaign entitled, "Intellectual Property Pledge Financing to Benefit Enterprises in Industrial Parks," promoting intellectual property pledge financing services to benefit more SMEs, with an aim to cover "100 industrial parks and 10,000 enterprises." As I just mentioned, in 2021, China's patent and trademark pledge financing reached 309.8 billion yuan. Inclusive loans worth less than 10 million yuan have been issued to 11,000 enterprises, accounting for 71.8% of the total enterprises benefiting from the policies.

Second, we jointly launched a patent transfer plan to support patent technology transfers for SMEs. We worked with the Ministry of Finance to organize and implement a three-year special plan for patent transfers, in a bid to promote innovations from universities and institutions to transfer and utilize in SMEs. So far, a total of 30 provinces have launched the special plan to further promote the policies and measures that benefit more SMEs, among which eight provinces have received the first batch of subsidies and rewards.

Third, we have stepped up efforts to foster SMEs and increase their capacity for intellectual property management. We have encouraged SMEs to implement the national standard of enterprises intellectual property management and further optimize intellectual property management systems. We have scaled up our efforts to foster demonstration enterprises with advantages in intellectual property among SMEs. Among the total 5,729 national demonstration enterprises, the number of SMEs accounted for more than 76%. The research and development investment, the average number of in-force patents, and other indicators of those SMEs are higher than the national average. 

Fourth, we have enhanced intellectual property service to support the innovative development of SMEs. We have guided the construction of patent navigation service bases and promoted applying a series of national standards like the Patent Navigation Guidelines. We have pushed forward the establishment of the decision-making mechanism in patent navigation, thus effectively serving the innovative development of SMEs. By establishing trademarks and brands guidance stations, we have provided SMEs with convenient and high-quality guidance and services on trademarks and brands. Meanwhile, we have launched a campaign to "provide intellectual property services in a tour of ten thousand miles." With the critical tasks of attracting employment and entrepreneurship to the intellectual property service industry, supporting rural vitalization with geographical indications, and benefiting and helping enterprises, we have guided and supported nearly 10,000 local online and on-site activities, benefiting more than 15,000 market entities, mainly SMEs. In addition, we have sped up the building of the comprehensive intellectual property service window, providing all intellectual property services through the window. 

Going forward, we will continue to implement the decisions and arrangements of the CPC Central Committee and the State Council, launch the SMEs intellectual property strategic promotion project, and take multiple measures to bolster the innovative development of SMEs. Thank you. 

Tianmu News:

The quality of patent applications has drawn much attention. Mr. Hu just mentioned the statistics of combating irregular patent applications. What has been done in this regard? What about the achievements and plans?

Hu Wenhui：

Thank you for your question about cracking down on irregular patent applications. Let us invite Mr. Zhang to answer this question. 

Zhang Zhicheng:

Thank you for your question. To thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, and take concrete actions to turn China from a country relying on imported intellectual property into one with solid innovative ability, and from quantity-orientation into quality-orientation, the CNIPA has continued to carry out patent quality promotion projects in recent years. It has scored outstanding achievements in firmly taking actions against irregular patent applications with no intent to protect innovation. In general, we have delivered in the four following aspects. 

First, we have actively instructed local governments to improve intellectual property policies and promote high-quality development by canceling subsidies and rewards for applying. 

Second, we have strengthened examination efforts at an early phase. Through combined manners of computer-assisted screening and manual checking, we have strictly examined and prudently confirmed cases suspected as irregular patent applications. 

Third, we promptly notified local authorities of the patent applications confirmed as irregular and requested local intellectual property management authorities to inspect the applications, and the applicants to withdraw them. We also protect the legitimate rights and interests of applicants in accordance with laws during the process. 

Fourth, we have intensified positive publicity and guidance to foster a sound environment for high-quality development, instructed applicants to apply for patents correctly and promoted quality.

As Mr. Hu just said, the CNIPA has organized a special campaign to crack down on irregular patent applications last year and notified local governments across China about a total of 815,000 irregular patent applications in four batches. By the end of last year, 97% of the notified irregular patent applications of the first three batches were withdrawn. Meanwhile, the CNIPA has intensified regulation in the patent agent industry. In the "Blue Sky" special campaign, we have heavily punished nine agent institutions dealing with irregular patent applications by qualifications revocation and agency suspension. As for 84 agencies whose cases per agent consistently exceeded five times the average level, we have organized intellectual property management departments in relevant provinces to conduct critical inspections. We have urged the local governments to impose an administrative penalty on 29 institutions with severe cases. 

Last week, the national meeting attended by heads of the country's intellectual property departments was held. In accordance with the deployment of the meeting, we will continue to crack down on abnormal patent applications. Next, we will continue working with local intellectual property management departments to improve the standardized working mechanism for cracking down on abnormal patent applications, promote the synergy between upper and lower levels of collaborative governance, increase efforts to crack down on abnormal patent applications, improve the quality of patent applications and accelerate efforts to build China into a country that is strong on intellectual property. Thanks. 

Economic Daily:

According to recently published statistics, in 2021, the amount of national patent and trademark pledge financing exceeded 300 billion yuan for the first time. How do you comment on this and what specific measures have been carried out? Thanks. 

Hu Wenhui:

Thank you for your question. Regarding pledge financing, we will invite Ms. Lei to answer the question.  

Lei Xiaoyun:

Thank you for your question. Mr. Hu just introduced the overall situation for national patent and trademark pledge financing in 2021. Last year, the amount of national patent and trademark pledge financing exceeded 300 billion yuan for the first time, and financial inclusion was also improved. It was the result of superimposing multiple factors including policies, measures, market environment and business demands, as well as giving full play to the initiatives of both central and local governments. 

First, the central government has attached great importance to intellectual property pledge financing. General Secretary Xi Jinping has repeatedly pointed out the necessity of increasing financial support for micro, small and medium-sized enterprises. The Fifth Plenary Session of the 19th CPC Central Committee proposed improving the financial support innovation system. The Central Economic Work Conference emphasized guiding financial institutions to increase support for the real economy, especially the technological innovation of small and micro-sized enterprises. The Outline for Building China's Strength in Intellectual Property and the 14th Five-Year Plan proposed developing intellectual property finance in an active and steady manner. The executive meeting of the State Council discussed and made arrangements for intellectual property pledge financing. 

Second, the financing demands of technology-based micro, small and medium-sized enterprises have been increasing. Micro, small and medium-sized enterprises have been an important force for stabilizing growth, promoting employment and safeguarding people's livelihood. Against the backdrop of COVID-19, micro, small and medium-sized enterprises have been under enormous pressure and faced many difficulties. Particularly, many technology-based enterprises in the start-up stage, which have strong innovation capacity and solid growth potential, have been eager to obtain financial support with "light assets" such as patents and trademarks to achieve better development.

Third, we should implement multiple measures, combine details, analyze the overall situation and make joint efforts. In terms of policy guidance, we should follow the deployment of the State Council. The CNIPA has joined the China Banking and Insurance Regulatory Commission (CBIRC) and the National Copyright Administration in issuing the Notice on Further Strengthening Intellectual Property Pledged Financing. The Notice establishes specific measures such as separate credit plans, specialized evaluations and incentive mechanisms, as well as loosening non-performing loan ratios. The Notice on Promoting and Regulating the Operation of Intellectual Property Rights, which prioritizes strengthening financial services for intellectual property rights, has also been issued. The CNIPA, the CBIRC and the National Development and Reform Commission (NDRC) have jointly launched a three-year campaign entitled, "Intellectual Property Pledge Financing to Benefit Enterprises in Industrial Parks," and provided guidance to local authorities for bank-enterprise matchmaking activities. In terms of optimizing services, the Measures for Registration of Pledge of Patent Right has been revised, providing online registration of intellectual property pledges for financial institutions on a trial basis. We have jointly provided guidance with relevant departments for building a national intellectual property pledge information platform to gather information on patent and trademark pledges and financial products. In terms of bank-enterprise cooperation, we have conducted strategic cooperation with Bank of China and China Construction Bank to guide the development of special products for intellectual property pledges.  

Next, in accordance with arrangements made by the central government, we will continue to promote intellectual property pledge financing to provide better services for innovative small and medium-sized enterprises and provide support for the high-quality development of the real economy. 

Thanks.

China Intellectual Property News:

The establishment of an open licensing system has been added to the newly amended patent law. Why did the authorities create such a system? What positive outcomes have been achieved since the system took effect more than six months ago?

Hu Wenhui:

Thanks for your questions. I'd like to take the question regarding the open licensing system. As you said, it was revised according to China's national realities while also learning from the experience of foreign countries. The open licensing system was set up to promote the enforcement and application of patents, and it works in the following three aspects: 

First, it facilitates the transmission of patent license information. The CNIPA announcements regarding the patent licensing act as a bridge between patentees and licensees, making it easier for both parties to reach each other.

Second, it ensures patent licensing negotiations are more efficient. The removal of complicated negotiations makes it easier for patentees and licensees to reach an agreement over patent licenses, thereby lowering the patent licensing costs. 

Third, it reduces the risks amid patent license transactions. There are mechanisms to disclose patent license information and handle patent disputes in the open licensing system, allowing the licensees to comprehensively understand the licensing conditions and other information in advance.

The open licensing system has drawn the broad attention of the patentees and people from all walks of life over the past more than a half year. According to our statistics, the CNIPA has received 608 open patent license statements, 572 of which are invention patents filed by 110 patentees from 24 provinces and equivalent administrative units .

To ensure the implementation of the patent licensing system, the CNIPA has also made efforts such as releasing statistical data of the patent royalties and developing assessment criteria, laying a solid foundation for the smooth operation of the system.

Going forward, we will continue to promote the enforcement and application of patents and ramp up efforts in the following three aspects: First, we will ensure that services in terms of license statement submission, information disclosure, and filing will become more convenient. Second, we will improve the services regarding the pricing of patent royalties and the transfer of patent licenses under the framework of the special plan to promotes the application of patents, thereby encouraging more people to make better use of the system and patents. Third, we will strengthen regulation and supervision and crackdown on the practices of counterfeiting licenses to avoid or reduce the annual fees in accordance with the laws and regulations. Moreover, we will fulfill the duty of handling the patent disputes to create a favorable environment. Thank you. 

ThePaper.cn:

In December of last year, the United States Patent and Trademark Office (USPTO) imposed sanctions against a trademark agency in Shenzhen, invalidating more than 15,000 trademarks the agent filed. What is your comment on the U.S. sanctions? Is there any problem with the agency? What measures have the CNIPA taken to respond to the issue? Thank you.

Hu Wenhui:

Thank you for your questions. I'd like to invite Ms. Lei to answer it.

Lei Xiaoyun:

Thank you for your questions. We've learned about the U.S. announcement. Media outlets and experts have made objective analyses on the steady growth of trademark applications in the United States from Chinese applicants. Most of them believe that the rapid increase in trademark applications in foreign countries is mainly because that the rapid development of China's cross-border e-commerce, which has pushed more Chinese products to meet the sales requirements of Amazon and other e-commerce platforms in the United States. 

As Chinese companies have become increasingly global in recent years, market entities' demand for intellectual property services has also surged, which therefore triggered rapid development of the intellectual property agency sector. In order to ensure the rights and interests of the applicants, we have stepped up efforts in the "Blue Sky" campaigns among other multiple measures to tighten regulation on trademark agents.

First, we launched a self-examination and rectification campaign and collected integrity commitments. Approximately 23,000 trademark registration agencies completed self-examination of key rectification issues and submitted their reports.

Second, we cracked down on malicious trademark registration activities in a timely manner. More than 130 such cases were investigated and punished.

Third, we strengthened supervision of major trademark registration cases and severely cracked down on acts that disrupted industry order. Three trademark registration agencies were ordered to cease related operations.

Fourth, we regulated platform-based trademark registration agencies and trading behavior through multiple means, such as offering administrative guidance, making regulatory talks for self-correction, suspending operations for self-rectification, and giving administrative penalties. The trading of 2.07 million trademarks suspected of being registered with malicious intention was withdrawn.

As for the Shenzhen-based agency you just mentioned, during a special crackdown campaign last year, the trademark law enforcing department imposed administrative penalties on the agency and its person in charge for false advertising and using illegal means to solicit business in China.

Next, we will fiercely crack down on violations of laws and regulations within trademark registration agencies, continue to improve the order of trademark agency industry and stimulate the vitality of trademark agency services, so as to provide strong support for comprehensively strengthening the protection and utilization of intellectual property. Thank you.

China Daily:

In China's 14th Five-Year Plan (2021-2025) and the Long-Range Objectives Through the Year 2035, the "number of high-quality invention patents per 10,000 people" was set as a major social and economic development goal for the first time. How is the goal achieved now? What does it indicate? Thank you.

Hu Wenhui:

Thank you for your questions. I would like to invite Mr. Ge Shu to answer the questions on high-value invention patents per 10,000 people.

Ge Shu:

Thank you for your questions. As Mr. Hu just noted, by the end of 2021, the average ownership of high-value invention patents on the Chinese mainland reached 7.5 patents per 10,000 people, up 1.2 over the previous year. The number of high-value invention patents per 10,000 people aims to objectively evaluate China's innovative development and guide the transformation of intellectual property work to become an quality-oriented one. The number is an anticipatory goal. How it is achieved primarily depends on how market entities play their role. According to statistics of 2021, China's scale of high-value invention patents expanded steadily, and the structure of high-value invention patents was further optimized. This ensured a good start to the 14th Five-Year Plan (2021-2025). It can be shown in the following aspects:  

First, the reserve of patents for high-tech and strategic emerging sectors was continuously strengthened. By the end of 2021, the number of invention patents for high-tech and strategic emerging sectors was 792,000 in China (excluding Hong Kong, Macao and Taiwan), up 114,000 over the end of the 13th Five-Year Plan period (2016-2020). Industries' independent innovation capacity strengthened continuously.

Second, the number of valid invention patents effective for a long period of time increased rapidly. By the end of 2021, the number of valid invention patents effective for more than 10 years was 323,000 in China (excluding Hong Kong, Macao and Taiwan), an increase of 27.7% over the previous year, contributing 11.9% of the national GDP, up 0.6 percent point over the end of the 13th Five-Year Plan period (2016-2020).

Third, innovators' capability of going global improved continuously. By the end of 2021, the number of China's valid invention patents possessing overseas patent family rights was 83,000, an increase of 21.8% over the previous year. Enterprises were the main innovators and owned nearly 90% of them.

Next, the CNIPA will focus on implementing the plan of building a major intellectual property country and implementing the 14th Five-Year Plan (2021-2025), make our targets more quality-oriented and value-oriented, fully unleash the creativity of the society, and vigorously strengthen the quality of intellectual property creation, so as to use high-quality intellectual properties to facilitate high-quality economic and social development.

Thank you.

Ta Kung Pao and Wen Wei Po:

We have noted that the CNIPA has issued data on intellectual property services in its annual statistics for the first time. What are the considerations behind this data release? What progress has China made in providing intellectual property public services over the past year? Thank you.  

Hu Wenhui:

Thank you for your question and your long-term interest in intellectual property-related work. Indeed, this is the first time we have officially released data on intellectual property public services in our annual statistics. So let me brief you on this. 

In recent years, according to decisions and arrangements of the CPC Central Committee and the State Council on reforms to streamline administration and delegate power, improve regulation, and upgrade services, the NIPA has strengthened intellectual property public services and issued a guideline in 2021 on deepening the reforms mentioned above in the intellectual property field. This guideline includes 16 reform measures of six aspects to promote comprehensive progress in this regard.

First, we have deepened reforms to facilitate patent and trademark registration applications. As I mentioned earlier, the "one-window" service for patent and trademark business is now provided in 31 provinces (autonomous regions and municipalities). At the same time, we continued to promote the online completion of the whole process of patent pledge registration. Furthermore, we have advocated the notification and promise principle in the process of patent and trademark exclusive right pledge registration. The measures of reform on notification-promise mechanism for licensing and approving agencies' operations have been replicated and applied nationwide. In addition, in terms of the review cycle, in 2021, the review cycle of high-value invention patents was reduced to 13.3 months, the average review cycle of invention patents was decreased to 18.5 months, the average review cycle of trademark registration remained stable at 4 months, and the general trademark registration cycle was reduced to 7 months.  

Second, we have made intellectual property public services more standardized, equitable, and accessible. Not long ago, the NIPA issued a list of intellectual property public services, which includes the online and offline access paths for 49 services in three categories of intellectual property application, management, and information. As a result, the intellectual property public service requests can be accepted without discrimination and processed with the same standard based on the list.  

Third, we have accelerated the establishment of an intellectual property public service system that is convenient for and beneficial to the people. As I mentioned earlier, in 2021, China's intellectual property information service institutions achieved full coverage at the provincial level, with 52 provincial-level institutes and 104 prefecture-level comprehensive institutes. At the same time, we have jointly set up 101 technology and innovation support centers with the World Intellectual Property Organization, built 80 national intellectual property information service centers in universities with the Ministry of Education, and filed the first batch of 88 national intellectual property information public service entities.  

Fourth, we have enhanced infrastructure construction for IT-based and intelligent intellectual property. We have further optimized the functions of the intellectual property public service network and advanced its connection with websites of governments at all levels, including the CNIPA's official website, as well as the technology and innovation support centers and the websites of the intellectual property information service centers in universities mentioned above and other resource platforms. We have cooperated with the National Development and Reform Commission and other departments to guide the establishment of the intellectual property pledge information platform, achieving "one-stop inquiry" and "one-window display."

Fifth, we have beefed up efforts to open and share intellectual property data resources. We opened 10 additional types of intellectual property data to the public. We provided the data of China's layout-designs of integrated circuits for the first time, realizing batch downloading of the data of 45 kinds of Chinese and foreign patents, trademarks, and layout-designs of integrated circuits. The European Union Trademark Search System was also launched to provide the public with foreign trademark information search services for the first time.  

A few days ago, the CNIPA issued the 14th Five-Year Plan for intellectual property public services, the first five-year plan in this field. The plan will render the intellectual property public services more accessible and convenient and comprehensively support and efficiently serve the building of a strong country for intellectual property rights. Thank you. 

Cover News:

Trademark squatting with "Lake Changjin" and "Quan Hongchan" received significant attention. Data on the fight against malicious trademark registrations last year was also mentioned just now. What measures were taken in the previous year to combat malicious trademark squatting and what progress was achieved?

Hu Wenhui:

Thank you for your questions. Mr. Zhang Zhicheng will answer them.

Zhang Zhicheng:

Thank you for your questions. As you mentioned, incidents involving malicious trademark applications received much public attention. The CNIPA has attached great importance to solving the problem and taken multiple measures, such as improving regulations, setting up lexicons as examination guides, dealing with applications by type, and launching special actions, to crack down on trademark squatting and build a market environment featuring good faith. In 2019, we formulated and issued Several Provisions on Regulating Trademark Registration Applications. The regulation stipulates that a bad-faith application for trademark registration shall be rejected and invalidated according to the law and that the applicant shall be given administrative punishment such as warnings and fines based on the circumstances by the market regulatory department at or above the county level at the place where the applicant is located or where the violation occurs.

In early 2021, the CNIPA issued the Special Action Plan for Combating Malicious Trademark Squatting. The plan identified ten acts targeted during the special action, including maliciously squatting the names of public figures, well-known works, or character names with a relatively high reputation. Relevant case clues would be transferred to local intellectual property offices. As Mr. Hu mentioned, the CNIPA combated 482,000 malicious trademark registration applications throughout last year and rejected 1,111 applications involving trademark squatting with names including "Lake Changjin" and "Quan Hongchan." The CNIPA also announced 1,635 registered trademarks invalid and transferred 1,062 clues of cases involving suspected significant adverse consequences and malicious trademark registration to local authorities. Thanks to the measures, a tough position has been adopted across society in cracking down on malicious trademark registration.

In addition, as Ms. Lei mentioned, the CNIPA has intensified efforts in combating malicious squatting by trademark agents. For example, we organized local authorities to investigate 24 cases where trademark agents attempted to snatch buzzwords for the Olympic Games as trademarks maliciously and imposed administrative punishment on 13 cases. For two trademark agents involved in major severe squatting cases, we directly imposed an administrative penalty and stopped their business. In addition, we summoned 13 platform-based trademark agents for talks, guiding them to establish mechanisms for screening malicious trademark squatting and preventing the act and other violations of laws and regulations.

In the near future, the CNIPA will publish some typical cases of malicious trademark squatting on its official website and WeChat account to maintain long-term deterrence and ensure market and legal environments featuring fair competition and good faith for all market entities.

Thank you.

China Economic Information Service (CEIS, affiliated with Xinhua News Agency):

China's patent-intensive industries have made relatively fast progress against the backdrop of COVID-19. Could you elaborate on their features and current status based on the just-released data?

Hu Wenhui: 

Thank you for your question. I'd like to invite Mr. Ge Shu to answer.

Ge Shu: 

Thank you for your question. Globally, patent-intensive industries, featuring outstanding innovative capacity and strong market competitiveness, have provided strong support for high-quality socio-economic development in innovation-oriented countries. Cultivating and expanding these industries is a significant measure to push forward the integration of intellectual property into innovative development and promote high-quality economic development.

In order to better monitor the growth of patent-intensive industries, the NIPA and the National Bureau of Statistics jointly established a mechanism for the accounting and release of the added value for these industries. Statistical data shows that the growth characteristics of patent-intensive industries are as follows:

First, patent-intensive industries have strongly driven China's economic growth. Data released by Mr. Hu just now shows that China's overall added value of these industries exceeded 12 trillion yuan, up 5.8% year on year (without deducting the price factors), contributing 24.6% to GDP growth. Its proportion in GDP rose 0.35 percentage point compared with last year.

Second, patent-intensive industries show a strong capacity for risk resistance and robust resilience in development. In spite of the big socio-economic impact of the COVID-19 pandemic in 2020, the added value of the information and communication technology service industry, medical and pharmaceutical industry, as well as R&D, design and technology service industry rose 15.7%, 10.1% and 5.9% respectively year on year, becoming new engines of growth.

Third, patent-intensive industries boast strong innovative capacity and rapid growth in patent reserve. The authorized invention patents in the information and communication technology service industry and medical and pharmaceutical industry increased around 50% year on year. The fast growth of patent reserves in digital economy and medical sectors, among others, has strongly supported the rapid development of relevant industries.

The 14th Five-Year Plan for Protection and Application of Intellectual Property Rights proposed the task of cultivating patent-intensive industries. By the end of 2025, the added value of patent-intensive industries is expected to account for 13% of GDP. Next, with focus on the implementation of the task, the CNIPA will continue to cultivate and expand patent-intensive industries and push forward the deep integration of intellectual property with industries, thus promoting the transformation of intellectual property into real productivity and reinforcing the new engines of high-quality economic development. Thank you.

CNR:

With the 2022 Winter Olympics and Paralympics approaching, what has the CNIPA done to protect intellectual property associated with the Olympic Games? Thank you.

Hu Wenhui:

Thanks for your question. I will answer this question. General Secretary Xi Jinping emphasized that the Beijing Winter Olympics and Paralympics are major events for the Party and the country. Furthermore, a successful Beijing 2022 is China's solemn commitment to the international community. Therefore, making good preparations for the Beijing Winter Olympics and Paralympics is an honor and an important mission. The CNIPA has thoroughly implemented the guiding principles of General Secretary Xi Jinping's important instructions, attached great importance to the protection of intellectual property associated with the Olympics, actively deployed and implemented relevant work, and strived to provide a solid guarantee for a wonderful, extraordinary, and outstanding Olympic Games. I will briefly introduce our work in four main areas:

First, we have consolidated the foundation of work and promoted complete protection. We have announced the protection of 63 Olympic symbols submitted by the Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games, including the emblem, name, abbreviation, mascot, and slogan. At the same time, we have strengthened the protection of patents and trademarks for the emblems and torch designs of the Beijing Winter Olympic and Paralympic Games, providing complete protection of intellectual property associated with the Games.

Second, we have highlighted the key points of protection and enhanced the effectiveness of regulation and crackdown on intellectual property infringement. On the one hand, following the Regulations on the Protection of Olympic Symbols, we have promoted the timely release of information on licensees of the protected Olympic symbols, effectively supporting the enforcement of administrative law. On the other hand, together with the State Administration for Market Regulation (SAMR), we have issued a special action plan for protecting the intellectual property associated with the Olympic Symbols of the Beijing 2022 Winter Olympics and Paralympics, according to which a special nationwide campaign has been ongoing since mid-October last year to June this year.

Third, we have strengthened supervision to see responsibilities fulfilled locally. In collaboration with the SAMR, we have conducted special investigations in the Beijing and Zhangjiakou competition zones and various venues. For example, not long ago, some officials of the CNIPA went to Chongli district and conducted a special investigation on the intellectual property protection associated with the Olympics to ensure that the relevant protection work was practical and to provide guarantees for the smooth development of the Beijing Winter Olympics and Paralympics.

Fourth, we have underlined the publicity and training of intellectual property protection to improve the ability of relevant staff. For example, in 2020 and 2021, we held special training sessions, organized in both online and offline format, on the improvement of abilities to protect intellectual property associated with the Olympics for a total of 1,100 people, which effectively improved the professional capacity of personnel who are responsible for intellectual property protection and further publicized relevant knowledge.

Next, the CNIPA will organize all localities to strengthen further the protection of intellectual property associated with the Olympics, strictly crack down on infringement before the competition, enhance the coordination during the competition, and maintain a tough stance against intellectual property infringement. We will help ensure a successful Winter Olympic and Paralympic Games with these efforts.

Thank you. 

Brazilian newspaper O Globo:

Could you talk a little bit about China's position on intellectual property on public health issues, especially on COVID measures, not only vaccines but the testing for example. 

Hu Wenhui:

Thanks for your question. As many are concerned, we have attached importance to intellectual property related to the COVID-19. The CNIPA has launched a special green channel for quick review of patent applications related to the COVID-19. For intellectual property information services related to the COVID-19, we have also specially set up a professional service website for the public and professionals to inquire about relevant information. In this way, we have done our part to support the development of vaccines and the prevention and control of the pandemic. That's all I have to say in regards to that topic. Thank you.

Xing Huina:

Thank you, Mr. Hu, and thanks to the other three speakers. Today's press conference is now concluded. Thank you, journalists from the media. Goodbye, everyone.

Translated and edited by Cui Can, Liu Qiang, Liu Jianing, Zhang Rui, Gong Yingchun, Li Huiru, Wang Mengru, Chen Xia, Xu Xiaoxuan, Huang Shan, Wang Yiming, Yan Xiaoqing, Zhou Jing, Wang Qian, Zhu Bochen, Yuan Fang, Zhang Liying, David Ball, Jay Birbeck, and Drew Pittock. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese 

Speakers:

Wang Zhenmin, professor in the School of Law and director of the Center for Hong Kong and Macao Studies at Tsinghua University, and deputy head of the Chinese Association of Hong Kong and Macao Studies

Han Dayuan, professor in the Law School at Renmin University of China, and member of the Hong Kong Basic Law Committee of the Standing Committee of the National People’s Congress

Zhi Zhenfeng, researcher with the Institute of Law and the Center for Taiwan, Hong Kong and Macao Studies at the Chinese Academy of Social Sciences

Chairperson:

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

Date:

Dec. 27, 2021

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press briefing being held by the State Council Information Office (SCIO). Recently, the SCIO has issued a new white paper titled "Hong Kong: Democratic Progress Under the Framework of One Country, Two Systems." Today, we are very glad to have invited three experts to introduce relevant information and answer your questions. They are Mr. Wang Zhenmin, professor in the School of Law and director of the Center for Hong Kong and Macao Studies at Tsinghua University, and deputy head of the Chinese Association of Hong Kong and Macao Studies; Mr. Han Dayuan, professor in the Law School at Renmin University of China, and member of the Hong Kong Basic Law Committee of the Standing Committee of the National People's Congress (NPC); and Mr. Zhi Zhenfeng, researcher with the Institute of Law and the Center for Taiwan, Hong Kong and Macao Studies at the Chinese Academy of Social Sciences.

Now, I will give the floor to Mr. Wang Zhenmin.

Wang Zhenmin:

Friends from the media, ladies and gentlemen, good morning. I am very glad to be here at today's press briefing. The word "press briefing" is "chuifeng" in Mandarin, similar to "chuishui" in Cantonese. "Chuifeng" and "chuishui" can be combined into "chui feng shui," which implies that we have good feng shui. This March, the NPC and its standing committee improved Hong Kong's electoral system and formed a new democratic electoral system. Under the new system, the subsector general election for the Hong Kong Election Committee and the election of the seventh-term Legislative Council (LegCo) were held this year. On the day after the LegCo election, the SCIO issued a white paper titled "Hong Kong: Democratic Progress Under the Framework of One Country, Two Systems." The other two speakers and I have studied the Hong Kong question for a long time. Many experts and scholars studying the development of Hong Kong's political system have carefully read this white paper. It's my great pleasure to have the opportunity today to share with you our understanding of the white paper and relevant questions, and exchange views with you on Hong Kong's democratic progress.

The white paper, which focuses on Hong Kong's democratic progress, is the second to be issued by the Chinese government on the Hong Kong question. It comes at an opportune time and has great significance and far-reaching impact. The document offers a panoramic overview of the development of Hong Kong's political system over the past 180 years since British troops occupied Hong Kong Island in 1841, and particularly over the past 40 years. Full of facts and reasoning, the white paper presents both narration and comments, and combines explanation and argumentation. The document organically connects many seemingly isolated historical events and stories, and clarifies the historical and logical threads running through them, thus enabling readers to temporarily put aside current affairs at the time and review the extremely bumpy and complicated development process of Hong Kong's political system from a historical viewpoint. The white paper helps uncover the thick layers of history and dispel the long-lingering clouds of lies and rumors, so that readers can find the essence through phenomena, and grasp the truth and the whole picture of events. I believe that the document will truly help the public understand the merits of relevant matters, and make more objective, fair and fact-based judgments on Hong Kong's democratic progress under the framework of One Country, Two Systems. The white paper tackles problems at their roots, reveals the truth, and differentiates right from wrong, thus giving people inspiration and confidence.

In preparation for today's conference, I talked to some Hong Kong youth who are living in Beijing, asking them about their views on the white paper. Some of my Hong Kong friends also called me to share their ideas. It can be said that they have the best say in this regard. They said that in the past, they felt Britain was so good, as Britain and the United States were more democratic and seemed to be helping Hong Kong. After reading the white paper, they understand that the colonial rule was, in essence, dictatorship and had nothing to do with democracy. Over a long period, Britain hadn't exercised democratic rule in Hong Kong. But the British government rushed to "develop democracy" in Hong Kong in the very short remaining period of the colonial rule. What was the intention? Whose benefit was it for? The purpose was obvious to everyone and could deceive nobody. The white paper has revealed their hidden story. Those who didn't exercise democracy now in turn blame those who develop democracy, finding fault with the latter's practice. Is that logic? Certain countries have always taken the Sino-British Joint Declaration as a tool to meddle in Hong Kong affairs. I bring the text of the joint declaration with me. After repeatedly reading the text, I can't find wording such as "democracy" or "universal suffrage." China has been criticized for violating the joint declaration. But there's no mention of universal suffrage or democracy in the joint declaration. The joint declaration is not a document determining what electoral system would be implemented and what kind of democracy would be practiced in Hong Kong after its return to the motherland. It only specified that the government of the United Kingdom would restore Hong Kong to China, as simple as that. After the handover, what political system and electoral system would be implemented in Hong Kong are purely China's internal affairs. No country will discuss with other countries what kind of political system or what kind of electoral system would be implemented. I also read the Hong Kong Letters Patent and Hong Kong Royal Instructions promulgated during British rule and couldn't find anything relevant to democracy. We can find in those two documents that the LegCo members were appointed or removed by the governor with the approval of the British government and should hold their offices at the authority's pleasure. How could that be democracy? The system of democracy in Hong Kong was established after its return to the motherland in accordance with China's Constitution and the Basic Law of the HKSAR. That's the fact and truth. If you are interested, you may study the above-mentioned documents related to Hong Kong.

Even if in terms of human rights and the rule of law, the relevant situation is much better in Hong Kong after its return than in those countries which point the finger at it. Hong Kong ranks higher than those countries on the rankings of democracy and the rule of law. Their blames totally fly in the face of facts. The white paper reveals where Hong Kong's democracy comes from and the path it's heading for as well as its development process. It also reveals who had undermined democracy and who saved it; who has created, promoted, restored, and defended Hong Kong's democracy, while who has undermined and disrupted democracy in Hong Kong. The Communist Party of China (CPC), the Chinese government, and the Chinese people, including 7.5 million Hong Kong residents, hold 100% of intellectual property right on Hong Kong's democracy. The white paper also discloses what democratic system is good and what is fake democracy that impairs Hong Kong. What has happened proves that the Western model doesn't work in Hong Kong, and Hong Kong must have its own democratic system under the framework of One Country, Two Systems. The white paper also gives answers to what such a democracy should look like, what environment and conditions are needed to develop it, what's Hong Kong's democracy after improving its electoral system, and what is Hong Kong's future.

Only after reading the white paper can we realize that Hong Kong's democracy is so open and inclusive. Permanent residents of the HKSAR who are not of Chinese nationality also enjoy the right to vote and the right to stand for election, which I think is unique in the world – just think which country or place allows foreigners to vote and be elected in its territory. Chinese citizens who are permanent residents of the HKSAR even have dual rights: the right to participate in the governance of both Hong Kong and the country as empowered by law. Under the One Country, Two Systems policy, Hong Kong treats foreign companies and individuals friendly and as equals. Hong Kong is the place in the world with the least discrimination against foreign investment and the highest degree of equal protection for investors' interests. China supports Hong Kong's integration into the overall national development and vigorously backs Hong Kong in exchanges and cooperation with other countries, and Hong Kong will be more open to the world. 

Not until we read the white paper can we be aware of the central authorities' unwavering commitment to the One Country, Two Systems principle, with great resolve, confidence, and patience remaining unchanged. This is also true for the central authorities' motherly trust in the Hong Kong people, including the youth. There was a time when the One Country, Two Systems policy was severely disrupted and distorted, and the Hong Kong people fretted that the central authorities would be irritated to change its policy towards Hong Kong. Now, the white paper makes it clear that the central authorities will continue to implement the basic policy of One Country, Two Systems fully and faithfully. The One Country, Two Systems principle is back on track and functions well with vitality, debunking various kinds of lies and rumors. 

The white paper shows us who Hong Kong's family is and who truly loves Hong Kong and cares about the suffering of every person in Hong Kong. The affectionate words in the white paper reflect the motherland's selfless love and intense expectations. In the past two years, everything the central authorities have done is to save Hong Kong and its youth, democracy, and the One Country, Two Systems principle; everything has been for the benefit of Hong Kong and served the fundamental interests of all people who regard Hong Kong as their home. Always remember, rich or poor, diseased or healthy, in good times or in bad times, the motherland will always be with Hong Kong and provide the strongest backing. There were once many misunderstandings and misinterpretations of the motherland. In fact, only the motherland sincerely loves and protects Hong Kong, and has been providing it with practical and substantial support, making copious endeavors to promote its democratic and economic development. In order to ensure the long-term implementation of the One Country, Two Systems principle, the motherland has struggled against the anti-China agitators extensively, an effort, however, that was always distorted and smeared. How hard for the motherland! 

The white paper explains that only by standing firmly with its family and motherland can Hong Kong have a bright future, prosperity, and real high-quality democracy. The Western politicians hypocritically declared that they would "stand with Hong Kong people." However, young people from Hong Kong responded by saying "forget it" and "stay away from me." They will never fall for it again, nor will they be fooled again to let others actualize "mutual destruction" at their home of Hong Kong and exploit Hong Kong to mess up the happy life of over 1.4 billion Chinese people.  

In a nutshell, only after reading the white paper will we recognize the great significance of the recent LegCo election, which has opened a brand-new chapter for Hong Kong's democracy, with its advanced nature and strengths beyond doubt. Hong Kong must resolutely follow its own path and establish a new capitalist democratic system under the One Country, Two Systems principle.  

Now, we would like to take your questions. Thank you.

Shou Xiaoli: 

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

CCTV:

The white paper is titled "Hong Kong: Democratic Progress Under the Framework of One Country, Two Systems." What's the relation between the One Country, Two Systems policy and Hong Kong's democratic development? Thank you. 

Han Dayuan:

The title of this white paper, which was just mentioned, is worth your full attention. The core idea of a white paper is reflected in its title. This white paper is entitled Hong Kong: Democratic Progress Under the Framework of One Country, Two Systems. As we know, the word "under" signifies that the One Country, Two Systems framework and Hong Kong's democratic progress are not parallel. Rather, the framework constitutes the premise of and fundamental guarantee for Hong Kong's democratic progress, and One Country is a prerequisite for Hong Kong's democracy. The political system of Hong Kong applies locally. The election held in Hong Kong under the framework of One Country, Two Systems is a local one. The word "under" in the title helps clarify many fundamental and underlying problems. The white paper has pointed out clearly that the principle of One Country, Two Systems provides the fundamental guarantee for the development of democracy in Hong Kong. How should we understand this "fundamental guarantee"? Actually, it has shown the relationship between One Country and Two Systems. One Country is the prerequisite and basis for the Two Systems. The Two Systems are subordinate to and derive from One Country, and are an inherent part of One Country. The socialist system practiced on the mainland, the main body of the country, and the capitalist system in Hong Kong, run in parallel. However, the fact that the latter is subordinate to the former is not to be challenged. According to the white paper, the leadership by the CPC is the defining feature of Chinese socialism, and it is at the core of the order established by the Constitution. As such, it must be truly respected and upheld in Hong Kong. To determine the system of democracy in Hong Kong reflects the nature of the relationship between the central authorities and the HKSAR, and affects the region's stability and prosperity. In accordance with the Constitution and the HKSAR Basic Law, the central authorities have the final say in steering the development of democracy in Hong Kong. Only under central guidance can Hong Kong expect its democracy to make healthy progress. 

Some may be interested in the relationship between China's democracy and the democracy practiced in the HKSAR. In fact, the white paper has given clear answers in this regard. In accordance with the Constitution and the Basic Law, the system of democracy in Hong Kong is a component of the national democracy of the People's Republic of China, as Hong Kong's return to China signifies the region's reintegration into China's national governance. With the establishment of the constitutional order in Hong Kong, the system of democracy in the region has been reintegrated into the constitutional order underpinned by the Constitution and the Basic Law. Therefore, the system of democracy in Hong Kong is part of the national democracy. Both of them reflect the same philosophy, which is that the Chinese people, including the 7.5 million Hong Kong compatriots, run their own country. In the meantime, the state has, through the Basic Law, stipulated the main content, procedures, and basic principles of the system of democracy in the HKSAR. Thanks to the policy of One Country, Two Systems, Hong Kong can develop its democratic system with its own characteristics in accordance with the law and in light of the region's actual conditions, a system that applies locally and is different from that of the mainland.

According to the white paper, China's state and political systems determined that Hong Kong would establish a system of democracy after its return to China. The Chinese government remains committed to developing democracy in the HKSAR. As a special administrative region directly under the Central People's Government, its government should be organized on the basis of democratic principles stipulated by the Constitution and the Basic Law, as are its functions. The white paper also clarifies the interplay between the development of democracy and the rule of law in Hong Kong. The development of democracy should be based on the rule of law, and the constitutional order determined by the Constitution and the Basic Law should be upheld. As we all know, no democratic system in the world can be free of any checks. Democracy must be run under the framework of the rule of law. The development of democracy in Hong Kong cannot break the limits of the Constitution and the Basic Law, let alone undermine China's national security. Without national security, there would be no prospect of implementing democracy. Democracy, freedom, and human rights are the common values of humanity, to which the CPC and the Chinese people remain committed. Democracy is the right of the people, not the patent held by a small number of countries. The white paper – China: Democracy That Works – recently released by the Chinese government has encapsulated China's achievements in the development of democracy and championed the new concept of "whole-process people's democracy." This has provided Chinese thoughts, wisdom, and experience for global democracy laid the groundwork for developing democracy in Hong Kong under the framework of One Country, Two Systems, and provided a rule-of-law guarantee for developing democracy with Hong Kong's characteristics.

Therefore, Hong Kong citizens need to understand and pay attention to our country's democratic progress. Through practice, especially after experiencing turmoil in 2019, we have realized the limitation of the Western democracy and decided to firmly advance democracy with Hong Kong characteristics under the policy of One Country, Two Systems. 

Hong Kong Sing Tao Daily: 

The release of the white paper coincides with the first day after the Hong Kong LegCo election. May I ask what the considerations were in choosing the timing of its release? Thank you.

Wang Zhenmin:

As for the timing for the release of the white paper, there are many comments. In my view, two elements are of much concern to its debut soon after the LegCo election. First, the new electoral system of Hong Kong has twice experienced test practices: one with the elections of the Election Committee and the other with the LegCo. It is timely to summarize the new electoral system of Hong Kong. After all, the two significant practices have proved that it's a good system. The only test for truth is practice. We speak with facts. It's a good time to summarize the new electoral system in the HKSAR and its practical experience, elaborate on the core principles of the new electoral system and democracy, make a panoramic scanning of the democratic progress of Hong Kong, and extract the experience, lessons, and basic rules. I think it's appropriate. Second, some Western countries and politicians always observe China and everything in Hong Kong with self-imposed bias and resort to all kinds of means to attack and smear democracy in Hong Kong. The release of the white paper is timely to clarify facts, uncover the truth, fight against the attack on the democracy and new electoral system of the HKSAR, and manifest the principles and position of the Chinese government on the democratic progress of Hong Kong. I think the timing is very appropriate. Thank you. 

Hong Kong Commercial Daily: 

With the implementation of the Hong Kong National Security Law and the improvement of the electoral system, the situation of Hong Kong patriots governing Hong Kong has become consolidated. My question is for the experts: how will the government of HKSAR improve the business environment and accelerate the development of Hong Kong? Thank you.

Zhi Zhenfeng:

A good business environment is the hallmark of Hong Kong. In fact, the policy of One Country, Two Systems is the fundamental guarantee for the business environment in Hong Kong. People around the world are concerned with the business environment in Hong Kong. Being an international financial, shipping, and trade center, Hong Kong is a bridge of China for international communication and an attractive place for foreign investment. The Chinese government always firmly supports the government of HKSAR to improve the business environment of Hong Kong and protect the interests of investors. 

The rule of law underpins the best business environment. Since the return of Hong Kong to China, we have noticed that the business environment in Hong Kong continues to improve and is in a leading global position. The policy of One Country, Two Systems guarantees democracy and the rule of law in Hong Kong. According to the World Bank's Doing Business reports, Hong Kong is always at the forefront of various indicators. Why? The reason is that the high level of the rule of law ensures a good business environment. The policy of One Country, Two Systems has been successfully practiced in Hong Kong. Hong Kong now enjoys a stable political situation, good order, effective governance, high-level rule of law, a buoyant market economy, and an amiable business environment. 

Anti-China forces both inside and outside the region are saboteurs of Hong Kong's business environment. In recent years, anti-China agitators in Hong Kong and foreign territories have been trying to undermine the rule of law in Hong Kong, causing serious social damage, confrontation and conflict, and harming Hong Kong's business environment. We can see that foreign countries such as the U.K. and the United States continue to smear, suppress and bad-mouth Hong Kong. In June last year, the United States ended its special treatment of Hong Kong. In April this year, U.S. Secretary of State Blinken reaffirmed the cancellation of U.S. perks for Hong Kong's autonomous trade and finance. In July, the U.S. trumped up business warnings regarding Hong Kong to directly intimidate enterprises and individuals in Hong Kong, and even imposed illegal so-called sanctions on HKSAR and mainland officials. Within Hong Kong, anti-China agitators launched an illegal "Occupy Central" movement in 2014, later especially during the 2019 turmoil, they obstructed traffic, destroyed facilities, set fires, smashed shops, looted amid the chaos, attacked people, and even privately manufactured arms and weapons, and occupied universities. For a period of time, they turned Hong Kong from one of the world's safest cities into a turbulent city, which caused investors to lose their sense of security and discouraged tourists from visiting.

At critical moments, the central authority is the strongest backing for safeguarding Hong Kong's business environment. With the introduction of a series of measures by the state to address both the symptoms and root causes, such as the enforcement of the Hong Kong National Security Law and the improvements to the electoral system of Hong Kong, relying on the strong support of the central authorities and the vast development hinterland of the Greater Bay Area, Hong Kong's society has gone from chaos to stability, the business environment has been continuously optimized, and the economy has rebounded rapidly, providing huge market space for foreign investors. Here are some examples and data: In 2020, Hong Kong's IPO funds raised exceeded HK$500 billion, an increase of more than 50% year on year, allowing it to remain the second largest IPO market in the world. A recent report issued by the International Monetary Fund (IMF) also reaffirmed Hong Kong's status as an international center. Hong Kong ranks as the sixth largest trading entity in goods in the world in terms of the total value of trade in goods. According to a report by the U.N. Conference on Trade and Development, Hong Kong ranks as the third largest destination for foreign direct investment in the world. And, in the latest 2021 World Digital Competitiveness Ranking, Hong Kong ranks first in Asia and second in the world.

The HKSAR government is very clear and understands that financial trade and commerce are important pillars of Hong Kong's economic prosperity. The principle of Hong Kong patriots governing Hong Kong can guarantee a better business environment in Hong Kong. The HKSAR is now entering a new stage of restored order, thriving society and further prosperity. Therefore, the HKSAR government must seize the development opportunities brought about by the country's comprehensive deepening of reform and opening-up, actively participate in the significant national construction strategies such as building the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative, accelerate integration into the overall national development, inject new momentum into Hong Kong's economic development, work hard to resolve various deep-seated problems that have plagued Hong Kong for a long time, and further optimize and enhance the business environment. Thank you.

Bloomberg News:

Can we ask, is there a timeline for the universal suffrage for the chief executive? Thank you.

Wang Zhenmin:

Allow me to first discuss some points of view. The white paper reiterated the principle and position on the issue of democratic development in Hong Kong. The goals of dual universal suffrage laid down in the Basic Law of the HKSAR have not changed. Future amendments to the two methods for the elections of the chief executive and the LegCo will still be in accordance with the Constitution and the Basic Law of HKSAR, especially the newly revised Basic Law Annex I and Annex II, and will proceed from the realities of Hong Kong. Over the years, the central government has spent a lot of time, energy and resources on the democratic development of Hong Kong. Hong Kong's society has also made tremendous efforts in this regard, which has even caused serious political turmoil. The economy and people's livelihoods were interfered with because of politics. Now that we have a good democratic election system, it can be said that it has not come easily. We have all paid high prices in exchange for today's new democratic system. I think it should be cherished and consolidated. After such a long period of social turbulence and turmoil in Hong Kong, my own feeling is that people are longing for stability, it is necessary to allow the society to recuperate, and spend more energy and resources on developing the economy, improving people's livelihoods, and creating better lives, so as to lay a solid economic and social foundation for the healthy development of Hong Kong's democracy. I think this is what the residents of Hong Kong expect.

The white paper also reiterated in the first section of Part VI the central government's basic policies for Hong Kong. This section clearly states that we must continue to abide by a set of key principles: One Country, Two Systems, Hong Kong governed by the people of Hong Kong, and a high degree of autonomy for the region; and make sure that the policy of One Country, Two Systems will remain unchanged and that it is implemented faithfully. This is the fundamental guarantee for the development of democracy in the HKSAR. More specifically, in recent years, we've often heard about the notion of promoting HK's integration into national development, however, it is important to note that the white paper clearly points out the Chinese government supports Hong Kong in extensive exchanges and cooperation with other countries and areas, and attaches great importance to protecting the legitimate interests of foreign investors in Hong Kong. Hong Kong belongs to China, yet it is also an international economic, trade and financial platform, a platform benefiting not only China but also other countries in the world. Therefore, China is willing to share this platform with other countries and share the dividends brought by China's development. For many years, many international assessment agencies have believed that Hong Kong was, is, and will be the world's freest, friendliest, most open, and most dynamic free port and international financial center. This will only be strengthened and will not be changed. Thanks.

China Daily:

The white paper mentions that having Hong Kong patriots govern Hong Kong does not exclude people with different political views or ideas, nor will criticism of the government be suppressed. Democracy in the HKSAR allows ample room for different opinions and political groups, and there will be a plurality of voices in the government. All those who love the country and Hong Kong should stand together to form the most extensive united front, and expand it and make it more inclusive under the framework of One Country, Two Systems. The head of the Hong Kong and Macao Affairs Office of China's State Council also pointed out earlier that there was a diverse range of candidates for the LegCo election. Did the recently concluded LegCo election reflect this nature? Thanks.

Han Dayuan:

Thank you for your question. Since the changes and improvements were made to Hong Kong's electoral system, a total of 90 LegCo members have been elected. People are very concerned about how political inclusion is manifested. Among the questions of concern, I found that political inclusion and diversity of the electoral system are the terms that appear most frequently. As a scholar, I have some thoughts to share with you in this regard.

First of all, we must set a basic premise when talking about political inclusion, as I have mentioned earlier. The name of this white paper is "Hong Kong: Democratic Progress Under the Framework of One Country, Two Systems." The policy of One Country, Two Systems itself is one of China's greatest and most unique contributions to the political civilization of mankind. Its essence lies in the peaceful coexistence of two distinct systems within a sovereign country, each exerting respective advantages within the scope of a country. Therefore, the establishment and development of this system itself embodies the greatest political inclusion and greatest political courage, which is also one of China's contributions to world civilization. We have seen that though some countries or politicians criticize China's policy of One Country, Two Systems, they all recognize its contribution. In the history of human political civilization over the past 100 years, we cannot find similar institutional arrangements. In the socialist country of China, the policy of One Country, Two Systems is used to solve problems leftover from history. The political inclusion is embodied in the commitment and basic philosophy of China's government to the principle of One Country, Two Systems. The democratic development of Hong Kong under the policy of One Country, Two Systems, including the reform of the electoral system, reflects the greatest political inclusion, which in itself demonstrates the philosophy of the policy of One Country, Two Systems.

The white paper emphasized the inclusiveness and diversity of democracy in many aspects. Notably, it highlighted how to ensure the inclusiveness of the election. For example, the white paper summarized four characteristics of the electoral system. First, it is broadly representative. The electoral system has attracted an impressive range of candidates from diverse backgrounds, which shows its diversity. Second, it is politically inclusive. Candidates for the LegCo, from different points on the political spectrum, are all equal, no matter what political philosophies and opinions they hold. It's normal that they have different political views or opinions. Hong Kong patriots governing Hong Kong is the fundamental principle for improving the region's electoral system and the foundation for promoting its democratic progress. Hong Kong patriots must govern Hong Kong, but this principle doesn't mean disallowing different voices. Any Hong Kong residents can stand for election and participate in governing Hong Kong in accordance with the law, as long as they love the country and Hong Kong and are not involved in activities that undermine national sovereignty, security, and development interests or jeopardize Hong Kong's prosperity and stability. Therefore, it does not exclude people with different political views or ideas, nor will criticism of the government be suppressed, as said by some Western countries. Political inclusiveness and diversity are essential to implementing the principle of Hong Kong patriots governing Hong Kong. As you know, Hong Kong itself is a diverse society. Usually, people hold different views, opinions, or even sharp criticisms concerning the formulation of public policies and laws and significant issues. However, the Basic Law stipulates that Hong Kong residents shall have freedom of speech, press, assembly, and procession. These are all fundamental rights and freedoms safeguarded by the Basic Law. Hence, the central government clarifies that no instigator of disorder should be allowed into the governing body of the HKSAR, which doesn't mean that no other voices are allowed in the LegCo. During this election, 153 candidates were vying for 90 LegCo seats, which indicates that the electoral system is broadly representative and ensures balanced participation. From the perspective of social background, these LegCo members include clergy, school principals, university professors, lawyers, doctors, and community workers, and such broad representation reflects political inclusiveness and diversity. Among the 90 LegCo members, 56 are new faces, accounting for 62% of the total. Hopefully, you will notice an essential idea in the white paper: All those who love the country and Hong Kong should stand together to form the most extensive united front, expand it, and make it more inclusive under the One Country, Two Systems framework. The extensive united front means that we do not differentiate between political groups based on their political views, backgrounds, or ideas; our sole criterion is to see who serves the people of Hong Kong and safeguards the prosperity and stability of Hong Kong. In this way, we have formed a consensus among Hong Kong society to the most significant extent.

As a scholar, I would especially like to emphasize that since Hong Kong's return to China, since 2005 in particular, some regular expressions took shape in Hong Kong society, such as "pro-establishment camp," "opposition camp," and "pro-democracy camp." Democracy is a very noble and great term. It is understandable to form such habitual expressions as the "pro-democracy camp" label at times, or other labels, in a certain period after its return, but such a phrase, or a way of thinking, cannot objectively demonstrate the diverse interests in Hong Kong society, and is not beneficial for building a diverse and inclusive political and cultural atmosphere. It is apt to, by labeling people who love the country and Hong Kong but hold different political views, artificially divide patriotic people into various factions, which I think is not conducive to uniting people from all sectors of society or building social consensus. The white paper emphasizes forming the most extensive united front under One Country, Two Systems. I believe it is a very important concept because the core of democracy lies in enhancing people's sense of identity and gaining in system implementation. The key to the issue lies in how LegCo members genuinely serve the people after the election. Due to the COVID-19 pandemic and the anti-extradition turmoil, Hong Kong society, especially the Hong Kong people, faces many challenges and issues concerning livelihood, such as housing and employment, which are expected to be addressed through the new LegCo. In my view, being elected to the LegCo is just an exam admission ticket given by the Hong Kong people, and it remains to be seen whether the 90 members elected will genuinely serve the Hong Kong people in the next four years and whether they will be able to obtain their "graduation certificates." The Hong Kong people are in the best position to say whether or not to give them the "graduation certificates," and I particularly look forward to seeing them respond to the most urgent expectations of the Hong Kong people after being sworn in. Thank you.

Kyodo News:

It is reported that the voter turnout in this Hong Kong LegCo election was a record low. Some European and American organizations, therefore, criticized it as unrepresentative. What is the comment on the Chinese side? Thank you.

Han Dayuan:

As a professor of constitutional law, I also study electoral law. The question brought up by the Japanese journalist is also what you all pay great attention to. After the election, I often heard some friends, including some foreign friends, discuss about the voter turnout. The question you raised is of wide attention, and there are also some analyses in Hong Kong society. I would like to share my observations and opinions just as a scholar.

To interpret the voter turnout, we should take an objective and comprehensive look at the election results. According to statistics, in this LegCo election, the voter turnout was 30.2% in geographical constituencies, 32.22% in functional constituencies, and 98.48% in the Election Committee constituency. The election is divided into three parts: geographical constituency election, functional constituency election, and Election Committee election. Therefore, to evaluate the election results, we should not just look at any one of the three election types but take a comprehensive view. That's my first basic idea.

Second, according to my understanding of the rule of law and democratic theory and some views from the international community, turnout is not directly equal to democracy, and the turnout figures do not necessarily indicate the level of democracy and legitimacy of elections. To directly link turnout with democracy and legitimacy or equate turnout with democracy and legitimacy, in my opinion, is at least not in accordance with the rule of law and democratic theory. We should not take turnout as the sole criterion when we observe the election results. Turnout matters because it is an expression of voters' free will, but it is not the only one. We only use it as one of the indicators of voters' engagement in the expression of political intention. We should not only look at how many people have voted, but also who the elected are, and whether they can serve every sector of society, the development of society, and especially the interests of Hong Kong as a whole and its people. As I said earlier, the elections in Hong Kong are local. As we have observed, in recent years, local elections in some Western countries have seen different levels of voter turnout. For example, the turnout in local elections in cities like New York and Los Angeles was sometimes only around 20%, and that of London Assembly elections was between 30% and 40%, which also varies. I have done some research on it. The voter turnout in this year's Tokyo metropolitan assembly election was around 42%, and that in the European Parliament elections was about 20%. Therefore, the voter turnout in different countries and regions is affected by a combination of factors, so we should not just look at the turnout.

Besides, the reform of the electoral system this time, from designing to practical implementation, was under a tight schedule, as the central government had to make a general plan, and the HKSAR needed to implement the plan well. Therefore, all involved parties needed time to adjust to and comprehend the new system. Notably, the electoral procedures and rules of the new system are indeed complex, so it is understandable that some voters are still getting familiar with the system or looking on. The key to the electoral system lies in its inclusiveness and balance. Given that the reform was carried out against the backdrop of the disordered and chaotic HKSAR LegCo, we should fully respect voters as they take time to comprehend the transformation from an old electoral system to a new one. It is normal that some voters are looking on, and some might even be dissatisfied. We should show respect whether they voted or not and whoever they voted for. The common wish of the electorate is an orderly, prosperous, and steady Hong Kong. The voters will reach a consensus on the new electoral system over time. About the voter turnout this time, there are three points we need to make clear and hope you will notice. First, the Hong Kong elections in the past were highly politicalized, so there were more political issues and less issues about people's livelihood. The most significant change and highlight of the elections this time was that the candidates paid much attention to issues about people's livelihood and the economy. Therefore, the electoral culture is changing from an unhealthy one caused by political rifts in the past to one with people's livelihood as its core, which is a gradual process. Second, we noticed disruption from some anti-China forces from the West, including instigators of disorder in Hong Kong. For instance, some of those forces called for no voting, and some so-called poll organizations in Hong Kong disturbed the free choices of voters by polls. One more thing is that the meeting mechanism between Hong Kong's electorate and the candidates is flexible, but due to the pandemic, no more activities were arranged this time. Voter turnout is under the comprehensive influence of various factors, and we should take an objective and comprehensive approach to analyze it.  

Despite different views, the most significant success of the reform is the sound implementation of a good electoral system. Therefore, we should have objective evaluations. Thank you. 

Wang Zhenmin:

I want to add one point. I paid particular attention to the New York City elections last month, the voter turnout of which was 24%. NYC has a population of 8 million, while Hong Kong has a population of 7.5 million. The electorate of NYC is more than that of Hong Kong, but only 1.3 million people voted in the NYC elections, in contrast to the 1.35 million in the Hong Kong elections. Voter turnout is not the critical point. Besides, there is a phenomenon in the US that the voter turnouts of state-, city- and county-level elections are lower than that of the federal elections. However, many public opinion polls suggested that American people may trust local governments more. A survey indicates that voter turnout is like drawing blood, which is intended to examine if the body has problems, but you don't have to draw too much and one tube of blood is enough. The Republican Party and the Democratic Party severely struggle with each other on voter turnout. The Democratic Party wants to make it high, while the Republican Party wants to keep it low, believing if the Democratic Party has a high voter turnout, the Republican Party can never win. So, voter turnout in this case is not an issue truly reflecting democracy but an issue affecting election victory, which is the fundamental concern. Thank you. 

Phoenix TV:

We can see that the white paper covers a very long time span of 180 years from the colonial times to nowadays. Why does the white paper travel such a long time into the past and adopt a historical perspective? Thank you. 

Zhi Zhenfeng:

I will answer this question. The essence of the question is how democracy has been created and developed in Hong Kong. Though a basic fact, the answer has been distorted on purpose for a long time. There is a widespread hearsay or myth that the democracy in Hong Kong was bestowed and initiated by the British. It is truly a hearsay or rumor. To say that the British colonists bestowed democracy on Hong Kong is to fabricate a lie deliberately. Only by exposing the lie can we reveal the real picture from the very beginning. 

One of the important functions of the white paper is to help clarify facts and set the record straight. Over the years, the Hong Kong agitators have colluded with external anti-China forces to manipulate facts. As a result, many people, including some Hong Kong compatriots, have got a vague or even misinformed understanding of the origin and development of democracy in Hong Kong. This allowed anti-China agitators to foment considerable trouble. Over the years, they have confused truth and falsehood, instigated and abetted illegal activities, incited masked rioters to violence and caused social unrest. Again and again, democracy in Hong Kong was held back by them. History is the best textbook. Therefore, the white paper covers a long history in order to clarify historical facts and set the record straight.

The white paper presents basic facts about the origin and development of democracy in Hong Kong. On one hand, it exposes the lies fabricated by the U.S. and the U.K. about Hong Kong's democracy. During more than a century of British colonial rule, the U.K. had constantly undermined, disrupted and obstructed the development of democracy in Hong Kong. Simply put, under British colonial rule, there was no democracy in Hong Kong. As Alexander Grantham, the 22nd governor of Hong Kong appointed by the British government, wrote in his memoir, "In a crown colony the Governor is next to the Almighty." At the end of its colonial rule, the British government rushed through the so-called "electoral reform" in Hong Kong, which violated the Joint Declaration of the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China on the Question of Hong Kong (Sino-British Joint Declaration). It also violated the principle of aligning Hong Kong's future political system with the Basic Law, as well as previous agreements and understandings reached between the two sides. Known as the "Three Violations," these were imposed in Hong Kong against the basic rules of democratic development. Instead of bringing democracy to Hong Kong, its ulterior motives for doing so were to pervert the democratic system designed by the Basic Law and turn Hong Kong into a de facto independent or semi-independent political entity against the region's due constitutional status. The vicious intention of the U.K. was to undermine China's full governance over Hong Kong after the country resumed its sovereignty over the region, and extend British political influence after Hong Kong's return to China. In fact, this was part of a British attempt to portray their withdrawal as somehow "honorable" at the end of colonial rule.

On the other hand, the white paper says the CPC and the Chinese government designed, created, safeguarded and advanced Hong Kong's system of democracy. It makes clear where democracy in Hong Kong came from, that is, "the return of Hong Kong to China ushered in a new era for democracy." First, China's state system determined that Hong Kong would establish a system of democracy after its return to China. People's democracy is the life of socialism, a brilliant banner that has always been held high by the CPC, and an ideal that has always been cherished by the CPC and the Chinese people. Hence, Hong Kong would definitely establish a system of democracy after its return to China. Second, the central government has remained committed to the policy of One Country, Two Systems and to the Basic Law of the HKSAR, fully supporting the orderly development of democracy in Hong Kong in accordance with the law. Also, the central government has taken significant steps to advance democracy in Hong Kong, including giving the approval to amend election methods for the Chief Executive and the LegCo, setting a timetable for universal suffrage, drawing up a roadmap for electing the Chief Executive by universal suffrage and so on. In response to the obstruction and disruption by anti-China agitators and those external groups behind them, the central government has taken a series of decisive measures that addressed both the symptoms and root causes of the unrest to restore order to Hong Kong, bringing its democratic progress that underpins One Country, Two Systems back on track.

Therefore, we have reasons to believe that by gradually implementing the principle of Hong Kong patriots governing Hong Kong, combined with continued progress in promoting the new electoral system, Hong Kong's democratic development will steadily advance in accordance with the One Country, Two Systems principle and the realities in Hong Kong. To sum up, the future of Hong Kong's democracy is unlimited and bright. Thank you.

CRNTT: 

The white paper stressed that the system of democracy in Hong Kong should not be a replica of some other model. Rather, a path to democracy with Hong Kong characteristics should be explored under the policy of One Country, Two Systems, and the Basic Law and in keeping with its political, economic, social, cultural and historical conditions. So, what are the strengths of democracy with Hong Kong characteristics? Thank you. 

Wang Zhenmin: 

The revision and improvement of Hong Kong's electoral system have formed a new democratic system with many characteristics, highlights, and strengths, which mainly lie in the following aspects: 

First, it underlines both political security and political inclusiveness. All countries put safety first in their electoral systems. We have seen multiple countries, including the United States, saying that other countries interfered with their elections, and such interference should be opposed. Is there any country that doesn't resist foreign interference? Foreign intervention will deform democracy. Should that occur, democracy will be manipulated and distorted by certain external forces, and people cannot enjoy a democratic life. Why should we exclude anti-China elements who disrupt Hong Kong from participating in democratic life? The reason lies in that what they truly want is not democracy. Therefore, we should fully ensure election and political security, which are the most important. Under the new electoral system, all the candidates are patriotic and love Hong Kong. It is up to those who have built Hong Kong to discuss Hong Kong issues, not those who serve foreign forces to stir up trouble. The new electoral system also highlights political inclusiveness. To ensure security, we don't need to exclude democracy and political inclusiveness but external interference and disruption. Prof. Han has just talked about this point. In his recent speech, Xia Baolong, vice chairman of the National Committee of the Chinese People's Political Consultative Conference, also made an in-depth exposition on political inclusiveness. We only exclude those who are doing bad things and serving external forces. Hong Kong's local politics are diverse, and the political spectrum is vast. Those with ulterior motives were the only ones excluded. Therefore, the candidates and those elected are from various political groups across a broad spectrum. I think this is a very significant feature of the new electoral system. Developing the broadest possible united front under the framework of One Country, Two Systems is also a bright spot. During relevant discussions, it was proposed by many people that foreigners' right to vote be removed. There is no other place in the world like Hong Kong where foreigners can enjoy the right to vote and the right to stand for election with a "green card" (permanent resident status). But no change was made to this stipulation. Isn't this a manifestation of political inclusiveness?

Second, it guarantees democracy and competition. Some misunderstandings hint that the principle of "patriots administering Hong Kong" would stop competition, and candidates could win an easy victory. However, it turned out to be the first time in Hong Kong that an "easy victory" situation was eliminated. Everyone must compete fairly, and there is also full competition among patriots who love Hong Kong, so that Hong Kong people can vote under normal circumstances. The elections in the past were abnormal. Now democratic rights have been taken back from the anti-China politicians seeking to disrupt Hong Kong and returned to Hong Kong people to ensure they have the freedom to choose, truly become the masters, and live a democratic life of their own. Therefore, the competition is no less intense than in the past. All candidates competed on the same platform in the election, campaigning on their policies, experience, capability, patriotism, and love for Hong Kong. In the past elections, those who showed intention to disrupt Hong Kong and China at large would have a larger chance to win. That was abnormal. Patriotism is the prerequisite for elections in any country in the world. For example, in the elections in the United States, candidates who dare to say that they are not patriotic will be out of the race immediately. However, in the past elections in Hong Kong, candidates campaigned on who was more unpatriotic. In comparison, this year's elections are indeed normal elections, focusing on the economy and people's livelihood. This is what Hong Kong people care about. It is the politicians who care about politics. Hong Kong people are busy working every day and what they care about are the daily necessities of life. So, is it rational if the focus is only on solving the politicians' problems rather than on Hong Kong people? Therefore, the competition under the new electoral system is real and a regular competition instead of being political performance and manipulation.

Its third strength lies in its broad representation and balanced participation. Professor Han also talked about this point just now, so I will not elaborate on it anymore. The broad representation is exactly what the former electoral system ignored, such as representatives from grassroots and vulnerable communities. As Hong Kong is a capitalist society, there is no question about giving due regard to the interests of the business community and maintaining the sound development of capitalism in Hong Kong. However, you also have to give due regard and consideration to the groups that have been ignored for too long. This is a shortcoming of the previous electoral system, and we tackled it this time. It is noticeable that the new electoral system pays more attention to the overall and fundamental interests of Hong Kong. In the past, members from Hong Kong Island district councils could not represent Kowloon, nor could members from the legal sector represent the medical sector. They only represented the interests of their specific sectors, instead of the overall interests of Hong Kong. Now, however, we see that the 40 LegCo members returned by the Election Committee represent the overall interests of Hong Kong.

Moreover, the new electoral system has changed the conflicting political culture in the past Western-style democracy. The conflicts between the executive and legislative branches and the internal strife within the LegCo tore the whole of Hong Kong apart. Is that normal? Western-style democracy has come to an end in Hong Kong. It can't go any further. It is what Hong Kong imitated in the past. The elections this time have transformed the situation. There must be checks and balances and coordination between the executive and legislative branches. It can be expected that the new electoral system will bring good governance to Hong Kong with a more effective executive-led system, and significantly improve its governing capabilities. That's all.

Global Times: 

Following the LegCo election in Hong Kong, we noticed that the G7, the EU and the Five Eyes have all expressed their concerns and worries over the democratic development and electoral system in Hong Kong. They alleged that the new electoral system has undermined Hong Kong's high degree of autonomy under the policy of One Country, Two Systems, and that the central government shows no respect to the rights and freedoms of the people of Hong Kong. What's your opinion on this? Thank you.

Wang Zhenmin:

I really have no idea what they are worried about. We make Hong Kong better. Is this what they are worried about? Doesn't everyone in Hong Kong and the mainland expect to make Hong Kong better? This is even what the world expects. People in Hong Kong, the mainland and the world at large all expect Hong Kong to get better. If there are worries over this, I think such worries are unnecessary and driven by ulterior motives.

For a long time, some politicians in the West have believed that there is only one model of democracy in the world, namely, the democracy they are practicing. They cannot allow any other models of democracy. However, as a matter of fact, they practice different models of democracy in the West. Is the democracy in Britain the same as that in the U.S. or in France? They are different. They have their own democratic and electoral systems. Why can't they allow Hong Kong to have its own democratic system? This resonates with what Mr. Deng Xiaoping said in the past, that the old colonial mentality and Western-centric theories are haunting them, reflecting their pride and prejudice.

The democratic development in Hong Kong has its own reality and conditions, and it needs to solve Hong Kong's problems. In judging Hong Kong's democracy, we cannot say it is good when it is similar to or the same as the democracy of some country, or bad when it is different. We should take into account whether Hong Kong's democratic system can solve the problems of the people of Hong Kong and if the system has its own logic and ground. It is itself violating democratic principles for those politicians to promote and impose Western-style democracy against the will of others. Why can't we run our own affairs and make our own decisions? Why do you want to choose a system of democracy for us? We are running our own affairs and do not need carping and irresponsible remarks from others. We are not making decisions for you, and we never interfere with what systems and models of democracy other countries choose.

Professor Han and I both study constitution-related issues. In the past, academia often portrayed Western democracy nicely. But over these years, seeing the reality, more and more people no longer admire or worship it. The West still thinks that they occupy the highland of global democracy, superior to all others, and they can point fingers at the democracy of other countries and regions. But things changed a long time ago. Serious problems have been adequately exposed in their democratic practices. Their system is hypocritical and dangerous, with deep-rooted downside, not perfect at all, which has been exposed in front of the world for a long time. These years, they have been facing severe failure in internal governance, becoming examples of failed democracy rather than examples of thriving democracy. In particular, after the presidential election in the United States last year, we saw the American public occupy Capitol Hill. That was a "Beautiful Sight to Behold." Of course, if similar incidents happen in other places, the United States will offer criticism, saying things are out of order in those places. But when it happened in the United States, they argued that their democracy was perfect. This showed typical "double standards." Such democracy and chaos are witnessed and disdained by people worldwide. But they still peddle it to other countries and regions. These years, we have seen them make all efforts to tout their democracy, and how is the result? We have seen disasters threaten places where their democratic system has been forced. We have seen tragedies, relentless wars, and broken families in those places. They are reflecting on and reforming such democracy themselves, then why do they want to sell it in Hong Kong and other places? It is increasingly clear that their democracy doesn't mean people being the masters of the country. Taking a serious look into it, I don't think they will let the people be the masters of the country, like what the U.S. Constitution says - "We the people…" Because in that way, capitalists will have nowhere to be. Can they let the "one person, one vote" system make the decisions? Not possible. Then who are the masters? The politicians, the capital, and the money. The people, though, are shrouded and beguiled by the noise of democracy. So, we wonder that, after how many U.S. governments will the issues of poverty, wealth gap, and deep-rooted racial discrimination be tackled in the country? In more than 200 years, have these issues been solved? Are things improving or getting worse? Of course, as democracy deepens, these problems should have been better tackled. But they are not solved but worsened, which means something is going wrong with the system. In the democratic systems of such countries, the reality is that politicians hold money in one hand and ballots in the other. Where are the people? Can you see the people? When elections take place, people are God. Politicians beg voters for their ballots. But where are the people when elections finish? No one knows. Is there anyone serving the people? There is a saying that, you cannot see beautiful spring days when your eyes are closed, and people won't be able to see the mud on your legs if you keep standing in the water. Two elections have shown how the new democratic electoral system works in Hong Kong, and I believe future practices will continue to testify to its effectiveness. This is a success of democracy, benefiting local people and improving their wellbeing. There is no more chaos, "black terror," attempts for "mutual destruction," and filibusters. There is no more betraying one's own country for personal gains. And there is no more acting against China and creating disturbances in Hong Kong. The central government and local people have the most significant say in such important issue as the democratic development in Hong Kong. It is not something for foreign politicians to make comments on. We shall firmly follow our political system. Thank you.

Hong Kong Ta Kung Wen Wei Media Group:

What roles will the white paper play in the education of Hong Kong's young people? What new insights can they obtain from the white paper? Thank you. 

Zhi Zhenfeng:

Those are really good questions. If the young people are strong, the country will be strong. Young people are the future of Hong Kong and the country, and the hope of the nation. Only by focusing on facts can we discern right from wrong. The history of Hong Kong's democratic progress is an important part of the history of Hong Kong's return to China. By reading the white paper, the origin and development of Hong Kong's democracy and the One Country, Two Systems policy can be understood, and the truth of history can be restored. This will teach Hong Kong's young people that the CPC and the Chinese government designed, created, safeguarded, and advanced Hong Kong's system of democracy and anti-China, destabilizing elements in Hong Kong are spoilers and saboteurs of Hong Kong democracy. The white paper will help Hong Kong youth gain a full understanding of the relationship between One Country and Two Systems and develop their accurate understanding of history so as to strengthen the education work concerning patriotism and national conditions. 

The white paper should be the antidote to fallacies. If you have a 13-year-old daughter, will you allow her to take to the streets to join demonstrations with those rioters who set fire, rampantly smash facilities, and commit robbery and physical assault? Do you agree with those so-called demonstrations? Will you feel relieved if your child is associated with those people? Meanwhile, since Hong Kong's return to China, anti-China, destabilizing forces in Hong Kong continue to promote the so-called "Umbrella Movement protests" and the 2019 turmoil. We can hardly imagine that those who promoted these ideas will love Hong Kong and uphold true democracy. It is impossible. Anti-China, destabilizing forces propagate terrorism in the guise of democracy, distort the real meaning of democracy and freedom, and poison young people's values to make them become victims of secessionist sentiment, black violence, and mutual destruction. So we must use the white paper as the antidote to clarify facts. 

In this context, the white paper should be a "textbook" for Hong Kong's young people. The white paper has sowed the seeds of the correct views of history and democracy in Hong Kong. As the masters of the country and Hong Kong, Hong Kong's young people will become more reasonable, increase in confidence, advocate morals, and proceed with determination by studying the white paper. The Hong Kong society can combine the contents of the white paper with national security education and national education in schools, compile textbooks, adolescence literature, and teacher's training programs based on the contents of the white paper. It can also work with local social organizations to carry out knowledge competitions to enhance the enthusiasm of young people to study the white paper. 

I think that Hong Kong's education, journalism, and literature and art sectors, especially those providing culture and entertainment products to young people, should all take action to help Hong Kong people, including the youth, to correctly understand the relationship between the One Country, Two Systems policy and Hong Kong's democracy, and create positive, healthy, quality works to realize the healthy development of democracy in Hong Kong and advance the democracy process in Hong Kong. Thank you. 

Han Dayuan:

I want to add something. As a university teacher, I am very concerned about the participation of young people in Hong Kong in this election system. As Professor Zhi said just now, I think the future of Hong Kong is closely related to every young person in Hong Kong. Therefore, it is crucial for the young generation in Hong Kong to care about the development of their country and the development of Hong Kong, including the political development. Young people are most concerned with housing, employment, and career growth opportunities. Therefore, to help them develop and grow, both the central government and the SAR government have provided a lot of policy support, including the Guangdong-Hong Kong-Macao Greater Bay Area development plan. As a university teacher, I maintain frequent contact with young people. As far as I know, the number of young people in Hong Kong who have visited the mainland is much less than I thought. I hope that relevant departments can take adequate measures to encourage more young people to come to the mainland themselves. I believe that coming out in person to see what the mainland is really like will make a difference. 

Western countries use democracy and human rights as a pretext for criticizing China. I hope that our young people in Hong Kong can think independently. Is what some Hong Kong scholars call human rights and democracy natural? Do we need to reflect on the concept of democracy defined by Western countries? Many opinions have been distorted. In the past two years since the COVID-19 outbreak, people worldwide have been reflecting on what true democracy is. China's democracy practice recorded in a white paper titled "China: Democracy That Works" exemplifies the respect for democracy, a typical value of humanity, and distinctive Chinese characteristics. Created by the CPC and the Chinese people, China's democracy is in accord with its national conditions and realities. Protecting human rights is the most essential and fundamental principle of democracy, and putting people's lives, health, and safety first is of the highest value when safeguarding human rights. In the face of the pandemic, we must view objectively which country and political party truly regards people's lives, health, and safety as the highest value, and saves every life at all costs. On the contrary, the country that convened the so-called "democracy summit" has already reached over 800,000 coronavirus-related deaths, exceeding its death toll during World War II. A country that talks about democracy and human rights should have the ability to protect the life and health of its citizens. Therefore, the democratic practices, including the One Country, Two Systems policy of China, a country led by the CPC and home to one-fifth of the world's population, can serve as an experience for global democracy and human rights progress. I hope that everyone, especially the young people in Hong Kong, can think about democracy and human rights independently and care about and follow the democratic development of the country. The country's democracy and human rights development will give new connotations to the One Country, Two Systems policy. On that front, we should be full of confidence and expectation. Thank you.

Wang Zhenmin:

During the 2019 turmoil in Hong Kong, I once said at a conference that we are all concerned about our children eating unhealthy food, but few parents care about our children learning wrong knowledge. We have seen what Hong Kong children have learned in the past few years. They learned about the distorted history of Hong Kong's democracy, full of lies and rumors. The white paper provides an authentic textbook on Hong Kong's history and democracy, worthy of careful study by Hong Kong young people. It is crucial to understand the true history of one's own country. If there is something wrong with the stomach, taking some medicine will do, but what if the false idea poisons the minds? It would be difficult to find the cure. The education of Hong Kong's youth matters. Nevertheless, we are full of confidence in Hong Kong's democracy and the future of Hong Kong. I firmly believe that the prospects are bright for democracy in Hong Kong, just as the white paper said. Thank you.

Shou Xiaoli:

Thank you, experts and friends from the media. Today's briefing is concluded. Goodbye, everyone.

Translated and edited by Huang Shan, Wang Yanfang, Xu Xiaoxuan, Zhang Junmian, Mi Xingang, Wang Yiming, Zhang Rui, Li Huiru, Zhang Jiaqi, Wang Wei, Li Xiao, Liu Sitong, Chen Xia, Zhou Jing, He Shan, Ma Yujia, Liu Qiang, Yang Xi, Wang Qian, Zhang Liying, Yuan Fang, Liu Jianing, Duan Yaying, David Ball, Jay Birbeck, Drew Pittock and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Han Zirong, vice president and secretary general of the Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG)

Huang Chun, deputy director general of the Pandemic Prevention and Control Office of the BOCOG 

Li Ang, deputy director general and spokesperson of the Beijing Municipal Health Commission

Chairperson:

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

Date:

Dec. 23, 2021

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). The second edition of the Beijing 2022 Playbooks outlining COVID-19 countermeasures were released recently. To help you better understand related information, we are delighted to be joined today by Ms. Han Zirong, vice president and secretary general of the Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG); Mr. Huang Chun, deputy director-general of the Pandemic Prevention and Control Office of the BOCOG; and Mr. Li Ang, deputy director general and spokesperson of the Beijing Municipal Health Commission. They will brief you on pandemic prevention policies and relevant preparations for the Beijing 2022 Olympic and Paralympic Winter Games. First, I'll give the floor to Ms. Han Zirong.

Han Zirong:

Friends from the media, good morning. On Dec. 13, the BOCOG, the International Olympic Committee (IOC), and the International Paralympic Committee (IPC) jointly released the second edition of the Beijing 2022 Playbooks, which provide epidemic prevention guidelines for all stakeholders to participate in the Beijing Winter Olympics and Paralympics.

Now, I would like to give you a brief introduction from three aspects: the background and process of compiling the playbooks and basic principles of epidemic prevention.

I. Background of compiling the playbooks

Against the backdrop of COVID-19, the Beijing Winter Olympics and Paralympics are facing tremendous pressure and challenges:

First, the Chinese government has always put people's lives first and implemented a dynamic zero-COVID-19 approach in line with the overall prevention and control strategy of preventing case import and domestic resurgence, which has effectively guaranteed the sustained and stable economic and social development of China and the health and safety of the people. Therefore, the Beijing Winter Olympics and Paralympics must strictly implement the Chinese government's epidemic prevention principles and requirements and keep the bottom line of epidemic prevention and control in society.

Second, the COVID-19 pandemic, especially the spread of Omicron and other variants, has brought great uncertainty to the global COVID-19 situation. During the Games, many Olympic-related people from different countries and regions will come to China, increasing the number of people gathered. Therefore, many positive cases will be highly likely to happen.

In that context, we, together with the IOC and the IPC, have compiled and released the playbooks. The epidemic prevention content in the playbooks should first meet the needs of the Games and reflect the Games-centered, athletes-centered approach to ensure the regular operation of the Games. At the same time, it must comply with China's epidemic prevention and control principles. We hope that all stakeholders can strictly implement the epidemic prevention protocols, jointly respond to COVID-19 challenges, and make joint efforts to ensure the safety of all participants and the host cities and make the Games safe and smooth.

II. Process of compiling the playbooks

The process of compiling the playbooks can be divided into three phases.

First, the BOCOG worked independently on the preparation phase. In the first half of this year, we started the compilation of the playbooks. To present a streamlined, safe, and splendid Games on schedule, we set the six principles. They are a streamlined Games, vaccination, closed-loop management, effective emergency response, a combination of prevention and control, and a holistic and balanced approach. After several rounds of soliciting opinions in mid-September, six playbooks for six categories of stakeholders were completed and submitted to the IOC for review.

Second, we compiled the first edition of the playbooks with the IOC. In early October, we had three video communication meetings with the IOC and established the timeline and framework of the compilation. We agreed to condense the six playbooks into two, one for athletes and team officials, and another for other stakeholders, and set the essential principles of strengthening vaccination, pre-departure COVID-19 prevention measures, closed-loop management, and nucleic acid tests and emergency response. Nine rounds of consultations were held intensively to discuss the text item by item, and the consensus was reached before we jointly released them on Oct. 25. After releasing the first edition of the playbooks, we held nine briefings for all stakeholders, who generally expressed their understanding and recognition. In the recent international test events, we strictly followed the epidemic prevention standards and requirements that would be adopted for the actual games, through which the playbooks and the measures have proven effective.

Third, we compiled the second edition of the playbooks with the IOC. Since Nov. 5, we have held 14 consultation and review meetings with the IOC on the revision of the playbooks. While keeping the basic framework of the first edition, we have absorbed the opinions and suggestions of various stakeholders and taken into account issues discovered in the test events, and revised specific measures and related details concerning pre-games epidemic prevention, review of the previously infected, nucleic acid testing processes, list of permitted destinations for stakeholders, and isolation facility standards for the asymptomatic to make the playbooks more feasible. Finally, on Dec. 13, the second edition of the playbooks were officially released, followed by six briefings to respond to the specific concerns of various stakeholders.

III. Basic principles of the playbooks

The playbooks set out six principles:

First, vaccination. Vaccination is a crucial means to reduce the risk of infection and transmission and ensure the safety of the events. Except for athletes and team officials who are exempt due to medical reasons, all Olympic-related personnel must complete full vaccination at least 14 days before coming to China to be exempted from quarantine at the designated facility and enter the closed loop. Furthermore, given the complexity of the current COVID-19 situation worldwide, we especially recommend that all Olympic-related personnel receive booster shots against COVID-19.

Second, closed-loop management shall be applied. It is a special management system. Within the closed loop, all the people arriving in China for the Games, and domestic staff working for them directly are subject to daily health monitoring and nucleic acid tests, and need to stay in the hotels or the Olympic villages within the closed loop. They will be only allowed to take dedicated Olympic vehicles for moving between designated venues and places within the closed loop, and not allowed to meet people outside the closed loop, let alone the general public.

Third, a COVID-19 Liaison Officer (CLO) mechanism shall be established. All international organizations arriving in China for the Beijing 2022 Olympic and Paralympic Winter Games must appoint CLOs to keep close contact with their members, ensure that they understand the contents of the playbooks, assist in their preparations before arriving in China, and carry out relevant coordination work, including epidemic emergency responses.

Fourth, tests, tracing, and quarantine shall be conducted. During the Beijing 2022 Olympic and Paralympic Winter Games, all people within the closed loop shall take nucleic acid tests every day. Those who test positive and test positive again after retesting must be quarantined and receive treatment. In accordance with the standards of epidemiological survey and close contact determination stipulated in the playbooks, we will learn about where the infected individual has been, so as to locate close contacts as soon as possible and take decisive measures to cut the chain of transmission.

Fifth, contact between people shall be reduced. In crowded spaces with poor ventilation, there is a greater risk of being infected with the novel coronavirus from close contacts. The playbooks stipulate that social activities should be minimized, masks should be worn at all times, and long-time stays, gatherings and close contact should be avoided in confined spaces.

Sixth, hygiene awareness shall be raised. All Olympic participants should wear N95/KN95/FFP2 masks without breathing valves or surgical masks of the equivalent standards during their stay in China. We must wash hands and disinfect frequently, and use soap-free sanitizer whenever possible. We encourage handclapping to encourage the athletes, rather than singing and shouting. We recommend trying to avoid the use of shared items, or sterilizing them before use. Rooms should be ventilated regularly to maintain good airflow.

Friends from the media, the Winter Olympics are just around the corner. To prevent and control the epidemic and ensure the safety of Winter Olympic events and participants, we will continue to do the following work: First, we will intensify publicity and training. We will invite the IOC, IPC, and Olympic committees of countries (regions) to offer training and interpretation of the playbooks to their CLOs and personnel arriving in China for the Games. We will also train the Olympic-related staff in host cities so that they know well the epidemic rules in the playbooks and follow these rules consciously and strictly. Second, we will improve our working mechanisms. We will set up a consultation mechanism between Chinese and foreign medical and epidemic prevention experts, improve the CLO communication and coordination mechanism, and enhance the mechanism of emergency response coordination in and out of the closed loop to ensure that all epidemic prevention measures are fully implemented. Third, we will strengthen coordination of the work in and out of the closed loop. Based on the epidemic prevention and control system of the host cities, the work in and out of the closed loop will be integrated to form synergy and establish a work pattern integrating commands and operations so as to ensure safety of the Games.

Friends, there are only 43 days to go before the opening of the Games. All the preparations are ready. We hope all the participants can understand the importance of the epidemic prevention and control measures in the playbooks and strictly abide by them. With the strong support of the Chinese people and the international community, we have the confidence and determination to stage a streamlined, safe and splendid Olympic Games for the world.

Finally, I would like to welcome friends from the media to continue to focus on, support, and participate in the preparations for the Beijing Winter Olympics and Paralympics. Thank you!

Shou Xiaoli:

Thank you, Ms. Han, for your introduction. Now the floor is open for questions. Please identify the news outlet you work for before raising questions.

CCTV:

My question is about the recently published second edition of the Beijing 2022 Playbooks. What's the difference between the two editions? What rules have been updated? Will new epidemic prevention measures be issued before and during the Games?

Han Zirong:

Thank you for your questions. I think many friends from the media are interested in this subject because the first and second editions of the playbooks were published in quick succession. What are their differences? Let me give you a brief answer.

The second edition is generally consistent with the first one in basic principles, framework, and specific measures. We mainly did revisions and improvements on specific measures in three aspects. First, we have added some anti-pandemic measures, such as anti-pandemic requirements for Chinese participants, key information on the epidemiological survey, and spectating policies for athletes. These are the newly added measures. Second, we have provided more detailed anti-pandemic requirements. For example, we have specified policies for athletes identified as close contacts of confirmed cases before the Games, retesting work for people who tested positive, and the work process of testing agencies abroad. Additionally, the second edition details the review processes for vaccine exemption and people with a history of infection, as well as the flight booking process, which has been a major concern to all stakeholders. We have also made detailed requirements for the service standards of accommodation and transportation. Third, we have updated relevant information, such as the time for nucleic acid testing, the ways of sampling, and the list of destinations allowed for all stakeholders, which is highly relevant to foreign participants. We have listed all the destinations allowed in the second edition. As for the question whether additional measures will be put in place before and during the Games, it fully depends on the changes of the epidemic situation in and outside China, especially the infectiousness and perniciousness of the Omicron variant. We will follow up on the epidemic situation closely, respect the professional opinions of medical experts, and maintain close contact with the IOC and the IPC, in order to make dynamic adjustments to anti-pandemic measures. Only by upholding flexibility can we properly address the risks and challenges brought by Covid-19. That's all from me.

Beijing TV:

According to the second edition of the playbooks, what are the requirements and management measures for the entry and exit of the Games participants? How to conduct closed-loop management between competition zones? What health monitoring measures will be taken upon the participants' arrival in Beijing? How to ensure the accessibility and timeliness of nucleic acid testing? Thank you.

Han Zirong:

Thank you for your questions. All of these questions are very specific and concern all stakeholders. Mr. Huang will answer them.

Huang Chun:

Thank you for your questions. Actually, these questions comprise four aspects: remote control and prevention, closed-loop management, health monitoring, and nucleic acid testing.

In terms of remote control and prevention for inbound personnel, first, they need to download the "My 2022" app at least 14 days before their departure for China. There is a health monitoring system in the app, and they need to report their monitoring results on it every day. Second, they need to be fully vaccinated 14 days before coming to China. Third, they need to conduct two nucleic acid tests within 96 hours before the departure of their flights. Fourth, for those who were infected before coming to China, they need to conduct two additional nucleic acid tests besides the two regular tests. They also need to submit related review documents to the BOCOG at least eight working days before departure. Fifth, we will conduct throat swab tests and nasal swab tests for all inbound personnel at customs at the airport. Sixth, we will provide negative certificates of nucleic acid tests within 24 hours of departure for outbound personnel to help them head back to their destination countries. Generally speaking, we have made strict measures from remote control and prevention to outbound process.

Regarding closed-loop management, Ms. Han just stressed its importance. It is also a key measure in the playbooks and in the whole Winter Olympic Games. The playbooks have elaborated the requirements for closed-loop management. For all inbound personnel, they need to follow the closed-loop management policy during their entire stay in China. During this period, we will provide shuttle services between hotels and competition venues and other working sites. All activities have to be conducted within the closed loop. No personnel shall leave the loop, let alone reach areas outside the loop in the city – this is our bottom line. Therefore, for all personnel under the closed-loop management, they need to strictly follow personal protection measures and the requirements in the playbooks. This is also a key measure for us to ensure the safety and smooth operation of the Games and the safety of all participants.

As for the health monitoring we just mentioned, it will not only be conducted during the Games on a daily basis, but also be implemented 14 days before all Games participants' departure for China. All personnel should take the initiative to monitor their health situation and upload the results to the relevant system. I believe that we are very familiar with health monitoring. They need to conduct body temperature checks at least twice a day, get symptoms such as cough and sore throat checked out, and take suitable precautions for individual protection. That's all for the health monitoring.

The IOC and all stakeholders are very concerned about the convenience and timeliness of nucleic acid testing. Nucleic acid testing is a very important measure to prevent and control the epidemic. We will conduct nucleic acid tests for people in the closed loop every day. Such high-frequency tests constitute a potent measure that can ensure positive cases are found promptly and that the transmission chain is broken. We have also considered the sampling time of the athletes and other stakeholders, and made meticulous arrangements to ensure sampling will not affect the running of the Games. Sampling points have been set up in the Olympic Village, contracted hotels, centralized sites, and other venues. The sampling time is quite flexible, with the services available from 6 a.m. to 11 p.m. each day. The athletes can go for tests based on their competition schedule without any appointments. The result of the sampling taken between 6 a.m. and 12 a.m. will come out before 8 p.m., and those between noon and 11 p.m. will come out before 6 a.m. the next day. Some people have asked if negative test results can be given on a daily basis. It is clarified in the handbooks that only those with positive results will be informed.  

Thank you!

Red Star News:

All athletes are encouraged to get vaccinated according to the competition standards of the second editions of the Playbooks. Are booster shots also needed for athletes? In addition, how to better manage those people who are exempted from vaccination because of medical reasons? Thank you.

Huang Chun:  

Thank you for your question. As you all know, COVID-19 vaccinations are being carried out across the world. Vaccination has been proven to be an effective measure to prevent COVID-19 infection and reduce transmission risks, as well as a key step to run the events safely. Therefore, the handbooks stipulate that, except for some athletes and team officials who are medically exempt from vaccination for specific reasons, we require all other stakeholders to get vaccinated to avoid 21 days of quarantine after their entry into China. As for the booster shot you mentioned, we have built a consensus with the IOC after extensive communication. Given the uncertainties of the global pandemic and the spread of the new Omicron variant worldwide, we strongly recommend that all athletes and other stakeholders get a booster shot before coming to China. Many countries have made positive responses and administered booster shots to their athletes. We have formulated strict medical exemption standards, which are explained in the Playbooks, with the IOC, the IPC, and some relevant experts, meaning that not every exemption application for personal reasons in any case can be approved. The exemption standards are only limited to a small minority of athletes and team officials. We believe that athletes, who cherish their sports careers and the opportunity to participate in the Winter Olympics every four years, will strictly and consciously implement the relevant requirements in the handbooks to better protect themselves and others, and ensure the safe and smooth running of the Games. That's all. Thank you.  

Cover News:

At present, the "Meeting in Beijing" test events are coming to an end. The epidemic prevention work of the test events has been carried out in accordance with the competition requirements of the Beijing Winter Olympic Games. I would like to ask what was the outcome of the epidemic prevention measures and what is the feedback from all parties? Thank you.

Han Zirong:

Thank you for your question, which is a really good one. As you all know, as of October 5, BOCOG has been conducting a series of international test events. In terms of epidemic prevention and control, we have adopted measures that include remote prevention and control, closed-loop management, daily nucleic acid testing and health monitoring, and stringent implementation of relevant competition standards and requirements. During the test events, positive COVID-19 cases did occur among athletes before they boarded and they didn't board their flights to China according to the requirements outlined in the handbooks. Positive cases also emerged at the airport customs upon entry and among close contacts after entry. In accordance with relevant requirements, the individuals were quarantined in designated facilities and treated in designated hospitals, respectively, according to whether they had symptoms or not.  

In line the requirements of the handbooks, we allowed close contacts to attend the training and competitions normally under the condition of strict protection. Some contacts even played to the best of their ability in the contests and won gold medals, with which the athletes were rather satisfied. Given these examples, it is fair to say that the first edition of the Epidemic Prevention Handbooks has indeed stood the practical test of the test events.  

With the support of all parties, both the test events and the epidemic prevention and control work at all venues and sites during the events went smoothly, demonstrating that the first versions of the handbooks have stood the test and got recognition. Despite the positive cases, they were handled quickly and effectively, breaking the spread of the epidemic. It is fair to say that the relevant epidemic prevention and control policies have been well received in general, and recognized and spoken highly of by the vast majority of athletes, team officials, and foreign media friends.  

That's all for my answer.

South China Morning Post:

If infected cases are reported in the venues, how can the infections be prevented from spreading in Beijing and other cities? Thank you.

Huang Chun:

As we all know, the Beijing 2022 Winter Olympics will be held amid the pandemic. The emergence of virus carriers or small clusters of confirmed cases is likely to happen. During the event, a large number of inbound and outbound visitors will gather here, so the risk of transmission is very high. We have formulated emergency response plans for any contingency. If positive cases appear, we will take the following measures. Individuals who remain symptomless will be quarantined in facilities set up in the three competition zones, which is different from common practice in cities where the positive cases are sent to hospitals. Individuals who display symptoms will be transferred to designated hospitals, such as Ditan Hospital in Beijing and the No. 1 People's Hospital in Zhangjiakou, both of which have rich experience in the treatment of infectious diseases. Athletes who test positive will definitely not be allowed to compete. They will be discharged from isolation in accordance with the discharge guidelines. Those who test positive but are asymptomatic will be tested every day, beginning 24 hours after the last test and then discharged after they provide two consecutive negative COVID-19 test results with at least 24 hours between the two samples and no other COVID-19 symptoms. They can return to their Games-time roles after recovery according to their conditions and the requirements of the competition. They will also be asked to adopt additional countermeasures. Those displaying symptoms in Ditan Hospital and other hospitals will only be discharged if the following conditions are met: their temperature returns to normal for three consecutive days; respiratory symptoms improve significantly; lung imaging shows significant improvement; and there are two consecutive negative COVID-19 tests with a sample interval of at least 24 hours. They also can return to their Games-time roles after recovery.

If a person tests positive for COVID-19, then they will undoubtedly have close contacts. We formulate close contact criteria during flights and competition in accordance with international standards such as those laid out by the WHO. In China's communities, close contacts will be quarantined in designated hotels for 21 days, however, at the Winter Olympics we will carry out a closed-loop management system. In a large loop, rather than doing daily testing once, a close contact should instead receive two tests, and live and eat separately. More specifically, we will arrange dedicated vehicles for close contacts to move freely between their locations of quarantine and the venues. If results are negative, then they can take part in the competition and continue working under certain conditions.

We as well as the general public place a lot of focus on the impact to society at large. Preventing infections within the closed-loop from spreading to communities in cities as much as possible is a red line, especially when faced with the severe acute Omicron variant. We will strictly apply the closed-loop management policy and requirements of daily testing to prevent the virus from spreading further. 

CGTN:

The U.S.-based National Hockey League (NHL) announced yesterday that their players will not be participating in the Beijing 2022 Winter Olympics because of the pandemic. I want to ask if China will make any adjustments to its anti-pandemic policies, so as to make it more convenient for foreign athletes to take part in the competition. 

Huang Chun:

Thank you. I also read of the news yesterday and am keeping an eye on it. As you just said, they cannot participate in the Olympics this year because of the pandemic and we are sorry about that.

The epidemic prevention and control policy for the event was jointly formulated by the IOC, IPC and BOCOG. We issued two editions of the Beijing 2022 playbooks on Oct. 25 and Dec. 13, respectively. The measures in the playbooks have been made in accordance with the latest scientific achievements and opinions of experts and in reference to the experiences of other international events. In particular, we have adopted such measures in the recent 13 test events and training weeks from October to December. The overall effect was obvious and recognized by all stakeholders. We believe that these measures can reduce the risk of transmission, safeguard the health of all participants and the people of China, and ensure the safe and smooth running of the Winter Games. Thank you.

Xinhua News Agency:

The Beijing 2022 Olympic and Paralympic Winter Games will involve three competition zones and 19 venues spread out over various locations. My question is, how will you guarantee medical treatment? Thank you.

Li Ang:

Thank you for your question. As we all know, medical treatment is a key part of the service guarantee for the Games. In accordance with the requirements outlined in the Beijing 2022 Playbooks and the FIS Medical Guideline, Beijing will follow a designated, secure and effective approach to implement its supporting services, so as to host a streamlined, safe and splendid Olympic Games. We have focused on the following four aspects:

First, we have improved resource allocation of medical treatment. We have set up three kinds of medical stations throughout the competition venue: fixed medical stations, competition field medical stations, and medical stations for spectators. There are 88 medical stations in total at competition areas in Beijing, which will provide on-site medical treatment and triage and transfer sick and injured people. A total of 1,140 key medical personnel from 17 designated hospitals and two pre-hospital first-aid institutions have been assembled to serve as medical support personnel for the venue, with a backup of 457 hospital-level experts. In addition, 120 medical personnel from 12 tertiary hospitals were selected to form a municipal-level backup, equipped with 74 ambulances near the stadiums, 54 of which are negative pressure ambulances. In accordance with epidemic prevention and control requirements during the Winter Olympics, the BOCOG classified Olympics-related patients into five categories: confirmed and suspected COVID-19 patients, patients with fever in the closed loop, other patients in the closed loop, patients with fever outside the closed loop, and other patients outside the closed loop. We have adjusted and optimized treatment in different designated hospitals. Eighteen designated hospitals will treat patients in specific categories to avoid overlapping routes of patients with different risks. After the competition starts, 1,188 medical staff and 840 hospital experts will be dispatched from designated hospitals to provide timely and efficient medical services. Meanwhile, 60 municipal-level experts and 10 academicians will provide high-level technical support. As you can see, we have made full preparations in terms of manpower.

Second, according to stadium conditions and hospital characteristics, we have developed differential and targeted schemes for medical security. Medical staff, including orthopedics, stomatology, and other disciplines, will treat patients injured in different sports. For example, the ice hockey stadium is equipped with CT, dental chairs, and other relative equipment. We have carried out targeted first-aid exercises for different venues. In order to give full play to the advantages of professional disciplines, designated hospitals developed targeted medical security schemes to improve medical treatment capabilities. Yanqing Hospital of Peking University Third Hospital has transformed a 12,000-square-meter independent inpatient building into the Winter Olympics Medical Center, equipped with 72 beds, CT and MRI equipment, operating rooms, nucleic acid sampling booths, and a fever clinic. Beijing Anzhen Hospital set up a special area for the Olympics-related patients. Peking University People's Hospital, Beijing Chaoyang Hospital, and Bejing Shijitan Hospital have adjusted their hospital layout, set up special wards, been equipped with special CT and MRI equipment, and established negative pressure hybrid operating rooms, which will provide a strong guarantee for suitable medical treatment during the Winter Olympics.

Third, we have accelerated the construction of polyclinics in Winter Olympic villages. A 1,500-square-meter polyclinic in Beijing Winter Olympic Village and a 1,658-square-meter polyclinic in Yanqing Winter Olympic Village have been built, including 18 disciplines such as emergency treatment, physiotherapy and rehabilitation, imaging, TCM, and dentistry, which will meet the needs of basic outpatient service for 16 hours a day and emergency treatment for 24 hours after the competitions begin. At present, medical equipment testing of the polyclinic in Beijing Winter Olympic Village has been completed, and the medical equipment of CT, MRI, and DR Fangcang of the polyclinic in Yanqing Winter Olympic Village have been debugged in place, which will ensure orderly medical treatment, including outpatient service, emergency treatment, and rehabilitation transfer during the competition.

Forth, we have strengthened training, exercises, and blood supplies. Based on the principle of full training and internal-external integration, we have increased training of medical personnel in the knowledge of Winter Olympics, English, and skiing skills. Forty ski doctors have reached the international rescue level, and 1,900 medical support staff have acquired basic first-aid capability. Beijing Red Cross Blood Center has established a special blood allocation mechanism during the competition, with reserves of Rh-negative blood maintaining at 1,800 to 2,000 units.

In a word, Beijing will coordinate its medical resources to guarantee medical treatment for the Winter Olympics and Winter Paralympics, and provide high-quality and efficient medical treatment for athletes and friends from all over the world. Thank you.

Han Zirong:

We can see from Mr. Li's introduction that medical services for the Winter Olympics and Winter Paralympics are ready. Due to the characteristics of Winter Olympics and winter sports, the probability of injury is high for both athletes and staff. Medical rescue in international competitions has strict operating procedures. In the case of emergency rescue, there may be queries about why a rescue was slow. In fact, during the competition, medical assistance has to follow procedures in light of international standards. For example, when an athlete falls, team doctors have to decide whether the athlete should be transferred for further treatment or receive on-site treatment. Emergency personnel can only transfer the athlete after team doctors have finished their on-site judgment. Especially in the case of injuries, the first thing we have to do is stop the game so as to prevent secondary injuries. We hope that friends from the media can pay more attention to the medical rescue procedures of such international competitions. Our medical rescue teams will certainly carry out emergency treatments in accordance with the rules and procedures of international competitions to guarantee suitable medical treatment at the Winter Olympics.

Kyodo News Agency:

I would like to inquire about the spectators. Which venues and sports events do the BOCOG plan to allow spectators to attend? What is the spectator limit? When will ticket sales start? What are the requirements of the COVID-19 countermeasures for the spectators? Thank you.

Han Zirong:

You have raised questions of common concern. In view of the complex situation of the global COVID-19 pandemic, in order to prevent the possible spread of the virus and ensure the safety of all participants, we have already announced that tickets will be sold exclusively to spectators residing in China's mainland.

Regarding the ticket policies, COVID-19 prevention requirements, and other related information for domestic spectators, we are still making plans and will release them to the public in due course. Please refer to the information published through our official channels. We will keep close communication with the IOC and issue relevant ticket policies and COVID-19 countermeasures for domestic spectators regarding the COVID-19 situation. We hope that everyone obtains information through official channels. That's all for my answer for now.

Southern Metropolis Daily:

How would you cope with the situation if a positive case is found during the Games? How would you minimize the impact on related personnel? Thank you.

Huang Chun:

Just now, a reporter asked a similar question, which I've already introduced. I will briefly answer it again.

During the Games, there is a probability of infections or a small-scale cluster outbreak happening in the closed loop. But we have already made a plan to deal with such a situation and the plan worked during the previous testing competitions. I've already introduced the symptoms of the infected, whether he or she has symptoms or not, where to isolate and treat the infected, and the criteria for ending isolation or quarantine and hospital discharge if a positive case were to be found. Regarding whether it would affect the schedule of the Games, generally speaking, we would not adjust the event unless a large outbreak occurs. Certainly, in this regard, we will keep close communication with the IOC and the IPC and make joint judgments on whether to suspend the Games or adjust the schedule and other arrangements. 

I've also introduced the criteria for close contact and relevant management requirements. The competitions of the close contacts would not be affected if they strictly implement the overall prevention and control principles and measures. But there is a prerequisite: the athletes must provide proof of negative test results within six hours before they take part in the competition. In addition, for other Olympic-related personnel except for the athletes, if his or her job and tasks can be replaced by others, he or she should implement the quarantine policy of the city.

Given the probability of infections, we hope that every participant should strictly observe the closed-loop epidemic prevention measures. Only in this way can the Games be held and run smoothly.

Thank you!

Shou Xiaoli:

Due to time constraints, the last question, please. 

CRNTT:

We have noticed that the Version 2 of the Beijing 2022 Playbooks say that the first point of entry into the Chinese mainland must be Beijing Capital International Airport. Why? We know that there is often a high flow of passengers at the capital airport. Will the travel of ordinary passengers be affected? How will participants get to the closed-loop hotel from the airport? Thank you.

Huang Chun:

Thank you for raising a question of great concern – will cross-infection happen at the airport among the ordinary passengers since a large number of inbound participants will arrive at China without immediate quarantine?

As the largest airport in China, Beijing Capital International Airport boasts a high passenger-carrying capacity. Since the COVID-19 outbreak, we have seen that the airport has accumulated rich experience in epidemic prevention and control. Generally, the first point of entry to Beijing is the Beijing Capital International Airport. It has competent staff who are experienced in epidemic prevention and control, proper facilities and layout, and standardized working mechanisms and workflow. In addition, the airport has set up specific parking spaces, special areas for personnel, and special passages and lines of flow for the Olympics. What's more, the Beijing Capital International Airport is relatively close to the three competition zones and the expressway, which ensures excellent transport for the inbound athletes and attendees. The public can rest assured because they are outside the closed loop. We can guarantee that. During the entire process, a closed-loop system is enforced, from athletes and attendees' entering China and leaving the airport, their transportation to the Olympic and Paralympic Villages and hotels by specific vehicles, and to their leaving of the venues after the competitions to the airport where specific areas will be set up to deal with the relevant formalities. All Olympic-relevant personal will use dedicated Games transport during the whole process. Given the closed loop, the public will be separate from the Olympic-relevant personal. With all this being said, the Beijing Capital International Airport is an ideal first point of entry. It is a correct choice. Thank you. 

Shou Xiaoli:

Thank you, Ms. Han. Thank you, all the speakers and friends from the press. Thank you for your attention. Today's press conference is hereby concluded. 

Translated and edited by Zhang Jiaqi, Wang Qian, Duan Yaying, Zhang Junmian, Qin Qi, Chen Xia, Xu Xiaoxuan, Yang Xi, Ma Yujia, Li Huiru, Lin Liyao, Liu Qiang, Wang Yiming, Wang Yanfang, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Xu Lin, deputy director of the Publicity Department of the Central Committee of the Communist Party of China (CPC) and minister of the State Council Information Office (SCIO)

Xu Yousheng, deputy director of the United Front Work Department of the CPC Central Committee

Tian Peiyan, deputy director of the Policy Research Office of the CPC Central Committee

Guo Zhenhua, deputy secretary general of the Standing Committee of the National People's Congress (NPC)

Hu Henglu, head of the Research Department of the General Office of the National Committee of the Chinese People's Political Consultative Conference (CPPCC)

Wang Aiwen, vice minister of civil affairs

Chairperson:

Chen Wenjun, director general of the Press Bureau of the SCIO and spokesperson of the SCIO

Date:

Dec. 4, 2021

Chen Wenjun:

Ladies and gentlemen, good morning. The State Council Information Office (SCIO) is holding a press conference today to issue and introduce a white paper titled "China: Democracy That Works," and then take your questions. Present at today's press conference are Mr. Xu Lin, deputy director of the Publicity Department of the Central Committee of the Communist Party of China (CPC) and minister of the SCIO; Mr. Xu Yousheng, deputy director of the United Front Work Department of the CPC Central Committee; Mr. Tian Peiyan, deputy director of the Policy Research Office of the CPC Central Committee; Mr. Guo Zhenhua, deputy secretary general of the Standing Committee of the National People's Congress (NPC); Mr. Hu Henglu, head of the Research Department of the General Office of the National Committee of the Chinese People's Political Consultative Conference (CPPCC); and Mr. Wang Aiwen, vice minister of civil affairs.

Next, I will give the floor to Mr. Xu Lin.

Xu Lin:

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

Democracy is a common value of humanity and an ideal that has always been cherished by the CPC and the Chinese people.

This year marks the centenary of the CPC. Over the past hundred years, the Party has upheld people's democracy and led the people in realizing their status as masters of the country. The Chinese people now truly hold in their hands their own future and that of society and the country.

Since the Party's 18th National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has developed whole-process people's democracy as a key concept and strived to implement it, further translating democratic values into science-based and effective institutions and concrete actions. The viability and strength of whole-process people's democracy can be seen across China.

Today, the SCIO issued a white paper titled "China: Democracy That Works." This important document is a systematic introduction to China's democratic values, their course of development, institutional arrangements and systems, actions, as well as relevant achievements and contributions. The document notes that whole-process people's democracy integrates process-oriented democracy with results-oriented democracy, procedural democracy with substantive democracy, direct democracy with indirect democracy, and people's democracy with the will of the state. It is a model of socialist democracy that covers all aspects of the democratic process and all sectors of society. It is true democracy that works.

The white paper consists of three parts: preamble, main body and conclusion. The main body is divided into five sections: "Whole-Process People's Democracy Under CPC Leadership," "A Sound Institutional Framework," "Concrete and Pragmatic Practices," "Democracy That Works" and "A New Model of Democracy." From these five aspects, it is clear that China's whole-process people's democracy has both distinctive ideals and pragmatic actions as well as both institutional procedures and participating practices. It not only promotes China's development, but also increases the diversity of the political progress of humanity. It is a democratic system that integrates the logics of history, theory and practice.

First, China's democracy puts the people as the country's masters. The people's status as masters of the country is the essence of people's democracy in China. The white paper reviewed the process in which the Party led the people in developing democracy during the New Democratic Revolution period (1919-1949), socialist revolution and reconstruction period (1949-1978), and the years of reforms, opening-up and socialist modernization after 1978. It notes that since the 18th CPC National Congress, the Party has led the people in proactively developing whole-process people's democracy, and China's democracy has entered a new historical stage with its people having greater confidence in the country's democratic course and the future of China's democracy getting brighter. The white paper points out that whole-process people's democracy is a creation of the CPC in leading the people to pursue, develop and realize democracy, embodying the Party's innovation in advancing China's democratic theories, systems and practices. The white paper stresses that the Party's history of struggle is a course of rallying the people and leading them to explore, establish and develop whole-process people's democracy.

Second, democracy in China has achieved a sound institutional framework. In China, the people's status as masters of the country is the bedrock of all the systems of the country, and underlies the operation of all the systems for state governance. Whole-process people's democracy involves complete institutional procedures.

China has adopted the governing system of the people's democratic dictatorship, upholding the unity of democracy and dictatorship to ensure the people's status as masters of the country. The system of people's congresses has been adopted as the governing structure, through which the people exercise state power effectively. China has upheld and improved the system of multiparty cooperation and political consultation under CPC leadership. The system is able to avoid situations where there is discussion without decision and there is decision without action. It also effectively mitigates the risks of inadequate oversight in one-party rule, and the problems of destructive competition in multiparty political systems. China has consolidated and developed the broad patriotic united front, systematically promoting harmonious relations between political parties, between ethnic groups, between religions, between social groups, and between Chinese people at home and overseas. China has upheld and improved the system of regional ethnic autonomy, making the people of all ethnic groups the masters of the country on the principle of ensuring the solidarity and unity of the country. China has also upheld and improved the system of community-level self-governance. Democracy at the primary level has been expanded so that local residents can manage their own affairs by serving the community, undertaking self-education, and exercising public scrutiny.

According to the white paper, these well-coordinated and comprehensive institutional procedures serve to put into place diverse, open, and well-organized democratic channels to ensure that the Party's policies and the state will are integrated with the people's aspirations and that the people are masters of the country.

Third, democracy in China has been tested through concrete and pragmatic practices. According to the white paper, if the people are awakened only to cast a vote but become dormant afterwards, that is no true democracy. If the people are offered great hopes during electoral campaigning but have no say afterwards, that is no true democracy. If the people are offered fulsome promises during electoral canvassing but are left empty-handed afterwards, that is no true democracy.

Whole-process people's democracy in China is a complete system with supporting mechanisms and procedures, and has been fully tested through wide participation. China's whole-process people's democracy is a combination of electoral democracy and consultative democracy, and is applied through a combination of elections, consultations, decision-making, management, and oversight. It covers the economic, political, cultural, social, eco-environmental, and other fields, with a focus on national development, social governance, and people's lives. Whole-process people's democracy ensures that the people's voices are heard and their wishes are represented in every aspect of China's political and social life. It prevents individuals from manipulating the political process to win elections, and leaves no room for politicians to shower promises while campaigning and break them all once elected.

Fourth, democracy in China is an extensive and true democracy that works. According to the white paper, democracy is not a decorative ornament, but an instrument for addressing the issues that concern the people.

With complete institutions and extensive participation, whole-process people's democracy has evolved from an idea into a system and mechanism of governance that has taken root in the soil of Chinese society and become part of people's lives. In China, all power belongs to the people, and the people enjoy extensive rights. In China, the people have gained a stronger sense of fulfillment, happiness, and security, and human rights are fully respected and protected. In China, democratic participation has kept expanding, and the people's demands can be freely expressed and effectively fulfilled.

The white paper points out that "One essential feature of a good model of democracy is that it will promote sound governance and boost national development," and "It is hard to see how a country can serve as a good example for the rest of the world if its own model of democracy is unsuccessful or inefficient in national governance." In addition, it states, "A good model of democracy should build consensus rather than creating social rifts and conflicts, safeguard social equity and justice rather than widening social disparities in favor of vested interests, maintain social order and stability rather than causing chaos and turmoil, and inspire positivity and appreciation of the good and the beautiful rather than instigating negativity and promoting the false and the evil."

China's democracy has boosted national development and social progress, and ensured the wellbeing of the people. It is high-quality democracy. 

The white paper emphasizes that "Whether a model of democracy works should be tested in actual practice and judged by the people."

Fifth, China's democracy has contributed a new model to the international political spectrum. Representing nearly one-fifth of the world's population, the more-than-1.4 billion Chinese people enjoy the status as masters of the country and extensive rights and freedoms. China has explored a new path to democracy and contributed its experience to global political progress.

The white paper points out that, "China has created and developed whole-process people's democracy in line with its national conditions. This is a form of democracy with distinctive Chinese features which at the same time reflects humanity's universal desire for democracy." It also says "There is no single road to democracy."

"Political systems vary from civilization to civilization, and each has its own strengths." "To judge other countries by one's own yardstick, or force them to duplicate one's own political system or democratic model … are undemocratic in themselves." Therefore, such deeds earn no one's heart and are doomed to fail. 

The white paper highlights that "All countries should uphold the principle of nondiscrimination, respect others' models of democracy, share experience with others, explore their own paths, and contribute their due share to human progress."

"There is always scope for improving the system of democracy." "China has achieved considerable progress in developing democracy; … China still needs to make further improvements. On the path towards comprehensive socialist modernization, the CPC will continue to uphold people's democracy, embrace the people-centered development philosophy, promote whole-process people's democracy, ensure the sound development of democracy, and pursue well-rounded human development and common prosperity for everyone."

"The Chinese people are willing to work together with all other peoples around the world to carry forward the common values of humanity – peace, development, fairness, justice, democracy and freedom. In a spirit of mutual respect and following the principle of seeking common ground while setting aside differences, we will add new elements to the world's political structure and advance towards a global community of shared future together."

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

Chen Wenjun:

Thank you, Mr. Xu. The Q&A session starts now. Please identify the news outlet you work for before raising a question. We have many journalists from other countries here, and questions asked in English will be interpreted into Chinese on the spot. Please start your questions now.

People's Daily:

China upholds the CPC's overall leadership, especially the centralized and unified leadership of the CPC Central Committee. What is the relationship between upholding the leadership of the CPC and whole-process people's democracy? Thank you.

Tian Peiyan:

The essence of the leadership of the CPC is to uphold and ensure the people's status as masters of the country. "Whole-process people's democracy is a creation of the CPC in leading the people to pursue, develop and realize democracy, embodying the Party's innovation in advancing China's democratic theories, systems and practices." Developing whole-process people's democracy can ensure the CPC leadership more effectively. We can say that upholding the CPC leadership is highly consistent with developing whole-process people's democracy, with the two reinforcing and complementing each other. 

On the one hand, upholding the CPC leadership is the fundamental guarantee for whole-process people's democracy. The CPC represents the fundamental interests of the overwhelming majority of the Chinese people, without any special interests of its own, and never represents the interests of any interest groups, powerful groups, or privileged elites. It stands firmly with the people and relies closely on the people to create history. In such a vast country with a population of more than 1.4 billion from 56 ethnic groups, if we were without the CPC leadership, especially the centralized and unified leadership of the CPC Central Committee, or if we implemented the so-called "democracy" in the West, it would be easy to become destabilized and fall into chaos, and democracy would inevitably reverse. Only by upholding the CPC leadership can we guarantee the right direction of democracy and ensure that people administer state affairs and manage economic and cultural undertakings and social affairs through various channels and in various ways in accordance with the law.

On the other hand, developing whole-process people's democracy is the intrinsic requirement of upholding the CPC leadership. Developing whole-process people's democracy can pool people's wisdoms and strengths into the cause of the CPC and the state, build stronger public support for the CPC leadership, make the policymaking of the CPC more reasonable, and implement the theories, lines, principles, and policies of the CPC in a more thorough and vigorous way. Thank you.

Lianhe Zaobao:

I have two questions. The U.S. will convene a Summit for Democracy next week. Recently, China has also emphasized whole-process people's democracy, and it released a white paper titled "China: Democracy That Works" today. Some hold that China and the U.S. are now in a struggle to make their own voice heard about democracy. What's your opinion on this? My second question is, the CPC will convene its 20th national congress in the second half of next year, and a total of 2,300 delegates to the congress will be elected. Could you please brief on the composition of the delegates, such as the ratio of officials against grassroots representation or that of male versus female? Thank you.

Xu Lin:

Thank you for your questions. First, we always hold that democracy comes in many forms. There are many ways to achieve it, and the model that suits best is always the most appropriate. As I have just mentioned, China's whole-process people's democracy is a model of socialist democracy that covers all aspects of the democratic process and all sectors of society. It is true democracy that works. It is rooted in China's history and culture, and suited to the country's national conditions. With distinctive Chinese characteristics, it draws on the achievements of human civilization, exemplifies common values of humanity, enriches international politics, and contributes China's ideas and solutions to the development of democracy. 

We always uphold that we should be open and inclusive and seek common ground while setting aside differences for different forms of democracy in different countries. As for the explorations and efforts in pursuit of democracy in different countries, we should respect them and draw on each other's experiences. That is true democracy. A handful of countries, adopting the hegemonic mindset that "whoever disagrees with me is wrong," treat other forms of democracy as undemocratic and even reject or suppress them. Those deeds are undemocratic themselves. Their models of democracy are notorious, and their own domestic governance is a mess, but they dictate to others and hurl abuses at others' models of democracy. Does this conform to their so-called democracy?

The U.S. proclaims itself "leader of democracy" and organizes and maneuvers a so-called "Summit for Democracy." But in fact, it just wants to suppress and contain countries with different social systems and development modes in the disguise of democracy. The deeds of being against democracy with the name of fake democracy are doomed to be a joke in the development of democracy and would not get any support.

As for your second question, next year, the CPC will convene its 20th national congress. Recently, the CPC Central Committee released a circular on the election of delegates to the Party's 20th national congress. Officials of the Organization Department of the CPC Central Committee were interviewed by Xinhua News Agency on the related issues. Here, I would like to give you a more detailed introduction.

According to the CPC Central Committee, a total of 2,300 delegates will be elected to the Party's 20th national congress. The quota for the number of delegates is mainly determined by the number of Party organizations and the number of Party members, while taking into account such factors as the number of delegates to the previous national congresses.

The CPC Central Committee stresses guaranteeing the proportion of delegates from frontline work and production. Among delegates representing provincial level regions, the central financial sector, and Beijing-based centrally-administered enterprises, Party members from the front line should account for at least one-third of the total while those at various leadership posts should not exceed two-thirds of the total. Female Party members should account for a certain proportion of the delegates. The proportion of female delegates from a provincial level region should be higher than that of female Party members in the total number of Party members in the region. There should be a certain number of female delegates from the central and state organs, the central financial sector, Beijing-based centrally-administered enterprises, the People's Liberation Army, and the People's Armed Police Force. These fully embody democracy within the Party and extensive representation, which will enable delegates to the Party's 20th national congress to better represent and reflect the will of Party members from all walks of life and sectors. Thank you.

Kyodo News Agency:

What kind of people can be candidates for people's congress deputies? How to elect deputies to the NPC and the local people's congresses at all levels? Compared with the systems of Western countries, what are the differences and characteristics? Thank you.

Guo Zhenhua:

The system of people's congresses is China's fundamental political system, whose original aspiration and essence is to ensure Chinese people's status as masters of the country. The Constitution stipulates that all power in China belongs to the people. The election of deputies to people's congresses, which is the basis of the system of people's congresses, has two notable characteristics:

First, the rights to vote for Chinese citizens are the most extensive. According to the Constitution, all citizens of the PRC who have reached the age of 18 shall have the right to vote and stand for election; persons deprived of political rights in accordance with law shall be an exception. Currently, more than 1 billion voters are participating in the elections to people's congresses at the township and county levels. Elections at the grassroots level are the most dynamic form of China's whole-process people's democracy, and also the world's largest elections.

The latest news reported that, in Beijing, Chinese President Xi Jinping, as a voter in Zhongnanhai electoral district in Xicheng district, cast his ballot at the Huairentang polling station. In Sichuan province, a 106-year-old woman cast her vote at a mobile ballot box outside her house. In Shanghai, a senior couple – a 90-year-old husband and his 78-year-old wife – displayed their collection of 31 voter's certificates after voting. These certificates are all owned by the couple, spanning 68 years. The oldest certificate belongs to Mr. Yuan, who participated in the first nationwide election of deputies to people's congresses in 1953 after the founding of the PRC.

Second, the deputies to people's congresses are fully representative of the people. China has five-level deputies: national, provincial, city, county, and township. At the end of 2020, 2.623 million people were serving as deputies to people's congresses at all levels nationwide. Among them, 2.478 million are at the township and county levels, accounting for 94.5% of the total. Deputies at the township and county levels are directly elected by the public; one person has one vote. Deputies to people's congresses at the city, provincial, and national levels are elected by people's congresses at the next level below. China's Electoral Law stipulates that there shall be an appropriate number of deputies from all regions, ethnic groups, and sectors, and makes clear requirements for the proportion of deputies elected from the grassroots level, especially workers, farmers, professionals and technicians, women, and ethnic minorities. It can be said that in China, deputies to people's congresses come from every region, every industry, every field, and every ethnic group.

Take the 13th NPC as an example. Among the nearly 3,000 deputies to the 13th NPC, 742 are women deputies, accounting for 24.9% of the total; and 468 workers and farmers, accounting for 15.7% of the total, including 45 migrant workers. Moreover, 613 deputies are professionals, accounting for 20.6% of the total, and 438 deputies are from ethnic minority groups, accounting for 14.7% of the total. All 55 ethnic minorities in China have NPC deputy representation. Even those with a very small population would have at least one NPC deputy. For example, the Monba ethnic group in Tibet, which has a population of around 10,000, also has one NPC deputy, who is female. She is a teacher at a local elementary school.

In terms of the characteristics that define China's electoral system, I would like to add a few points. China's first Electoral Law in 1953 granted the universality of the right to vote. It took Western countries several hundred years to realize universal suffrage in the legal sense while China achieved true universal suffrage without all those twists and turns. On the increasing number of people participating in elections – which is also the voter turnout – since the initiation of reform and opening up, China has conducted 12 direct elections to people's congresses at the township level and 11 direct elections at the county level, with a current participation rate of around 90%. On election funding in China, finances for deputy elections come from the treasury, which provides an institutional guarantee that election integrity will not be compromised by financial interests.

Thanks.

Phoenix TV:

The system of regional ethnic autonomy is an important part of socialist democracy with Chinese characteristics. Some voices from the international community believe that the Chinese government has tightened its management of ethnic minority groups, and that ethnic minorities don't have authentic autonomy. What's your comment on that? Thank you.

Xu Yousheng:

Thank you for your question. We know that the system of regional ethnic autonomy is a basic political system in China. It provides an important institutional guarantee for following the correct path of resolving ethnic problems according to Chinese principles. The system of regional ethnic autonomy means that areas with large ethnic minority populations can practice regional autonomy, establish autonomous organs and exercise the power of self-government under the unified leadership of the state. There are currently 155 ethnic autonomous areas in China, including five autonomous regions, 30 autonomous prefectures and 120 autonomous counties (banners). The area where regional ethnic autonomy is practiced accounts for 64% of the entire territory of China.

The system of regional ethnic autonomy is fundamentally aimed at maintaining national unity and ethnic solidarity. All autonomous organs of these areas are local governments subject to the unified leadership of the central government. They must ensure that national policies and orders are implemented smoothly and that national laws and regulations are enforced. On that basis, they must guarantee the equal rights and obligations of various ethnic groups in accordance with the law, support their economic development and improve their citizens' quality of life, achieve common development and common prosperity, and ensure that the autonomy of ethnic groups is fully realized. The ethnic autonomous areas enjoy autonomous rights across a wide range of fields, including legislative power, the right of economic development, the right of financial management, the right to cultivate and appoint ethnic minority officials, the right to develop education and culture and the right to use their own spoken and written languages, among others. Take the training and appointment of ethnic minority officials, something the CPC and Chinese government prioritizes, as an example. After more than 70 years, we have built a sizable and qualified team of ethnic minority officials, which has laid an important organizational foundation for implementing the system of regional ethnic autonomy. On all standing committees of people's congresses of the 155 ethnic autonomous areas, there are citizens from the local ethnic groups assuming the office of chair or vice chair. Likewise, all governors, prefectural commissioners and heads of counties of ethnic autonomous areas are citizens from local ethnic groups. 

Practice has proved that China's implementation of the system of regional ethnic autonomy is not only conducive to national unity, ethnic solidarity, and social stability, but also conducive to the development and progress of ethnic minorities and the long-term stability of the country. In the nine years from 2012 to 2020, the regional GDP of the five autonomous regions of Inner Mongolia, Guangxi, Tibet, Ningxia, and Xinjiang and the three multi-ethnic provinces of Yunnan, Guizhou, and Qinghai increased from 5.1 trillion yuan to 10.4 trillion yuan; the per capita regional GDP increased from 27,000 yuan to 52,000 yuan; and the urbanization rate increased from 43.1% to 55.1%. All 31.21 million impoverished people in ethnic minority areas have been lifted out of poverty, 420 state-level impoverished counties in ethnic autonomous areas have all gotten rid of poverty, and together with the rest of the country, they have achieved moderately prosperity in all respects.

As to whether the system of regional ethnic autonomy is good or not, whether it works or not, it should be judged by the Chinese people. The development and progress of ethnic minority areas, and the tangible data of people of all ethnic groups living a good life, are the best and most resounding answers. Thank you.

Guangming Daily:

We know that the system of the CPPCC was born in 1949. After more than 70 years of development and practice, what are the advantages and characteristics of this political institution in China's model of democracy? Thank you.

Hu Henglu:

Thank you for your question. The CPPCC originates from the political system created by the leading CPC and all non-communist parties, public figures without party affiliation, people's organizations, and public figures of all China's ethnic groups and sectors of society. It is deeply rooted in China's history and culture, and is an important means to achieve people's democracy in China. In September 1949, the first plenary session of the CPPCC was held, marking the formal establishment of the system of the CPPCC. For more than 70 years, under the leadership of the CPC, the CPPCC has adhered to the two themes of solidarity and democracy, served the central tasks of the CPC and the country, and played an important role in the great practice of establishing and developing the PRC, exploring paths of reforms, and realizing the Chinese Dream.

Socialism with Chinese characteristics has entered a new era. The CPPCC is an important channel and a specialized body for socialist consultative democracy. It integrates consultation, supervision, participation, and cooperation. It promotes broad unity, promotes multi-party cooperation, and practices people's democracy in consultations. It is an important part of China's national governance system and a political institution with Chinese characteristics. It has many characteristics and advantages in China's model of democracy and the whole-process people's democracy:

First, it promotes scientific and democratic decision-making in the process of political consultation. We insist on consultation before and during decision-making. Through plenary sessions, meetings of the standing committee, meetings of chairpersons, meetings of special committees, forums on specific subjects, and consultative seminars, we conduct extensive and in-depth consultations on the major policies of the country, important issues in various economic and social fields, and concerns of the people. For example, around the formulation and implementation of the 14th Five-Year Plan, we actively provided suggestions and political consultations on CPPCC's platform of consultation, submitted information for more than 220 rounds, put forward more than 190 proposals, and promoted the wishes, appeals, suggestions, and opinions of the CPPCC members and all walks of life in society to be fully reflected in the decision-making.

Second, it expands consensus and enhances solidarity in the process of political consultation. Through the CPPCC platform, all parties and groups, as well as people from all ethnic groups and all walks of life that participate in the CPPCC, not only conduct in-depth consultations and discussions on state affairs, pragmatically put forward opinions and suggestions, but also accept the propositions of the CPC, and then help publicize and explain the Party's policies and guidelines among people of different circles, enhancing trust and dispelling doubts, realizing the two-way effort of contributing their suggestions to aid administration, and, building consensus. For example, the 13th National Committee of the CPPCC implemented the decisions and arrangements of the CPC Central Committee, and actively consulted and made suggestions on how to resolutely win the fight against poverty, meanwhile, it tells the story of China's poverty reduction from the perspective of the CPPCC through member lectures, inspections, and themed reading groups. The CPPCC members therefore have a deep understanding of the original aspiration and mission of the CPC, the great course of building a moderately prosperous society in all respects, and the institutional strengths of the socialism with Chinese characteristics.

Third, it guarantees the people's orderly political participation in the process of political consultation. The CPPCC is composed of representatives from 34 sectors, including the CPC, the other political parties, the non-affiliates, people's organizations, 56 ethnic groups, and five major religions. At present, there are more than 3,200 CPPCC organizations at the national, provincial, city, and county levels, with more than 600,000 CPPCC members at all levels. This effectively guarantees all parties, organizations, ethnic groups, social groups and people from all walks of life to participate in the state affairs. The CPPCC supports non-Communist parties and non-affiliates to participate in the consultation and discussion of major national policies on the CPPCC platform, and makes institutional arrangements for the non-Communist parties to express their opinions and make suggestions on the CPPCC platform in the name of their own party. It serves as an important political and organizational form for implementing the system of multiparty cooperation and political consultation under the leadership of the CPC.

Thank you.

Reuters:

Comparing the whole-process people's democracy in China with democracy in the U.S., one difference is that voters in the U.S. can hold elected politicians accountable and vote them out in the next election if they think they didn't do a good job. Meanwhile, people's congresses in China only need to satisfy their superiors and the Party after being elected, and voters cannot vote out their superiors even if they are dissatisfied. What are your comments on this? Thank you.

Tian Peiyan:

Democracy is a concrete phenomenon that is constantly evolving. Rooted in history, culture, and tradition, it can take different forms and develops along the paths chosen by different peoples based on their exploration and innovation. The forms of democracy in China and in the U.S. should be tested in real-world scenarios and judged by the peoples.

Under the American system of democracy, politicians are agents of interest groups, rather than representatives of the interests of the voter majority or the country as a whole. They can willfully make promises to get elected but seldom fulfill them after being elected. They appear to be overseen by voters, but once elected, there's nothing voters can do but wait for the next election. If the people only wake up to cast a vote but become dormant afterwards, that is not true democracy. If the people are offered great hopes during electoral campaigns but have no say afterwards, that is not true democracy. If the people are offered fulsome promises during electoral campaigns but are left empty-handed afterwards, that is not true democracy. The Chinese people dislike and have no need for this kind of democracy.

Democracy in China is whole-process people's democracy under the leadership of the CPC. Party members and officials at all levels must accept oversight from the Party and the people throughout all aspects and sectors of the whole process, so as to ensure that public power, entrusted by the people, is and will always be exercised for the public good. No matter how high-level his or her position is, the person found to have violated Party discipline or state laws will be seriously punished, without exception. Deputies come from the people, represent the people, serve the people, are elected by the people, and are accountable to the people. They maintain close ties with the people at all times, always listen to and respond to the people's aspirations, actively advance solutions for the most pressing difficulties and problems that are of great concern to the people, and accept the oversight of the people and all social sectors. They are deputies who represent the people, reflect the will of the people, pool the wisdom of the people, and benefit the lives of the people. Voters and electoral units can disqualify or dismiss deputies who either cannot fulfill their duties or violate Party discipline or state laws, without having to wait until the next election. This kind of democracy is more broad-based, authentic, and effective.

According to surveys conducted by Harvard Kennedy School in China for 13 consecutive years, the Chinese people satisfaction with the Chinese government under the leadership of the CPC runs as high as 93%. I think people will make fair judges when comparing the democratic system in China with that in the U.S. Thank you.

Guo Zhenhua:

I agree very much with what Mr. Tian said about the contrast between how politicians in the U.S. behave during and after their election campaigns. I think one of the most important reasons is that, in the U.S., there is no institutional design or arrangement in its legal system for politicians, including members of Congress, to be overseen by voters after being elected. Even if voters are dissatisfied, they have to wait until the next election years later. In addition to the "revolving door" unique in the U.S. politics, it is unsurprising that members of the U.S. Congress speak for interest groups and are swayed by lobbying groups. On the contrary, in China, both the Constitution and the Electoral Law of the National People's Congress and Local People's Congresses stipulate that deputies to the NPC and people's congresses at local levels are subject to the oversight of voters and electoral units that elected the deputies, and voters and the electoral units have the right to dismiss deputies they elected. The Electoral Law also clearly stipulates procedures of dismissing deputies, giving voters in deputies' home electoral districts or deputies to the people's congresses of electoral units the power to jointly propose dismissals. In the past nearly four years since the 13th NPC, 10 NPC deputies have been dismissed in accordance with the law.

In all, comparing China with the U.S., the case is exactly the opposite of how you described. China's deputies to people's congresses are subject to strict and effective oversight during their terms of office, and the law stipulates clear dismissal rights and procedures. In the U.S., however, there is no institutional arrangement for those including members of Congress to be dismissed or supervised by voters during their terms of office. That is why we say that China's whole-process people's democracy has a sound institutional framework and concrete practices, which can ensure that voters and electoral units can effectively oversee the deputies they elect and leave no room for politicians to shower promises while campaigning and break them once elected.

Thank you.

China News Service:

What is the system of community-level self-governance in China? How do villagers committees and residents committees exercise self-governance? Thank you.

Wang Aiwen:

Thank you for your concern about the system of community-level self-governance, which is a basic political system in China. It is specified in the country's Constitution that residents committees established in urban areas and villagers committees in rural areas according to people's residences are people's organizations for self-governance at the grassroots level. Under the leadership of community-level Party organizations, such self-governance is a way for urban and rural residents to exercise their democratic right in accordance with the law to manage their own affairs including community governance, public affairs and public services by serving the community, undertaking self-education and exercising public scrutiny.

China has 492,000 villagers committees and 116,000 residents committees, covering all residents in urban and rural areas. These committees are selected by residents. How do they exercise self-governance? 

First, they organize democratic consultation. They pool ideas and widely solicit public opinions from residents. For example, they solicit residents' opinions regarding such affairs as the handling of community sanitation, aiding people in difficulty and expending collective income of villages, and make a to-do or priority list for the committees.

Second, they practice democratic decision-making on the basis of consultation. They review the affairs of consultation including the committee work to form final decisions through committee meetings and congresses.

Third, they organize residents to formulate or amend their own rules on self-governance and codes of conduct and self-regulation, which all residents need to obey. 

Fourth, they organize residents to oversee their work and review the performance of their staff. The entire decision-making process is made public, and so are the results of the decisions, which, together with residents' discussions, can be accessed via bulletins put on walls and bulletin boards or via cellphone. This practice ensures the supervision of the work of the committees. 

The system of community-level self-governance not only ensures people's democratic rights, but also plays an important role in our responses to major risks and challenges. In the fight against the epidemic, communities face great pressure in epidemic control due to China's large population of density. However, we have effectively contained the epidemic in our communities, because our residents and villagers committees have effectively organized the people to carry out joint and society-wide prevention and control, and contained the epidemic in communities. In the face of major risks and tests, the advantages of the Chinese system have been demonstrated. Thank you.

CRNTT: 

Democracy means supervision of public power. Judging from the corruption cases China has addressed in recent years, the country's anti-corruption situation is still complex and grave. What is your opinion on this matter? Thank you.

Tian Peiyan:

I'd like to take this question. Corruption is a common historical and social phenomenon in human society, which exists in all countries around the world. It is incompatible with the nature and principles of the CPC. Since its founding, our Party has been resolutely fighting against corruption. For a period before the Party's 18th National Congress, corruption was rather prominent in the country. Following the congress, our Party was deeply aware that corruption is the greatest threat to the Party's long-term governance. The fight against corruption is a matter of survival for the Party and the country, and therefore it is a major political battle that we cannot afford to lose, and also must not lose. Our Party is determined to honor its commitment to the 1.4 billion Chinese people by fighting corruption. No refuge has been excluded from the scope, no ground left unturned, and no tolerance shown in the fight against corruption. China has continued to impose tight constraints and maintain a tough stance and long-term deterrence, and has won a sweeping victory in the fight against corruption. Meanwhile, we are soberly aware that corruption has not been eradicated, and some areas are prone to corruption. The fight against corruption remains grave and complex, and will not stop. Our Party will continue to take integral and coordinated actions to raise the awareness, ability and resolve to resist corruption, and adopt effective measures to consolidate China's sweeping victory in the fight against corruption.

It is an important function of democracy to practice democratic oversight of public power and prevent its abuse and corruption. Since the 18th CPC National Congress, the Party has emphasized that public power is, and will always be, exercised for the public good and that power is prescribed by law, and regulated, constrained, and supervised by legal means to restrain power in an institutional cage. The exercise of power has been brought under stricter supervision. The supervisory systems of the Party and the state have been improved, and the reform of supervision mechanism and system building in key sectors have been advanced. A supervision system has been established with intra-Party supervision playing the leading role and various kinds of supervision coordinating with each other, thus preventing the anomie of power and rent-seeking to the largest extent. The Party has upheld democratic oversight throughout the entire process of the exercise of power and given full play to the irreplaceable role of democratic oversight in preventing corruption, thus reducing existing corruption constantly and restraining the increase of corruption effectively. Many corrupt officials were exposed through tip-offs and complaint letters, and individual interviews during disciplinary inspections. The fact that a large number of corrupt officials were investigated and handled does not mean the malfunction of democracy but proves the effectiveness of democratic oversight. We firmly believe that with the development of China's democracy and political system, democratic oversight will be more powerful, and corrupt officials shall have nowhere to hide in China. Thank you. 

Red Star News:

We all know that the deputies to community-level people's congresses are selected through direct election while those in the higher levels of people's congresses are elected indirectly. Will the current system mean that the suggestions and voices from ordinary people, especially vulnerable groups, will not be reflected in the highest level and be considered in the country's decision-making? Thank you. 

Guo Zhenhua:

The system of people's congresses is an important institutional support to whole-process people's democracy. The deputies to people's congresses in China, no matter at the national or community level, all come from the people and are rooted in the people. In addition, the deputies to people's congresses will stay in their original work positions after being elected so that they are in close contact with the people. 

In recent years, the people's congresses at all levels have set up more than 220,000 stations for the deputies to be in contact with the people, covering all townships and subdistricts across the country, and even some communities and villages. Deputies to the people's congresses at all levels receive information from the people and listen to their opinions at the stations on a regular basis. Such a system determines that deputies to the people's congresses in China are not career politicians and do not represent any particular interests. Therefore, they can truly and directly understand the people's aspirations and wishes, and submit the people's suggestions and advice through agencies of state power. At the NPC session each year, nearly 3,000 deputies will submit thousands of documents providing suggestions and advice. In this year's fourth session of the 13th NPC, the deputies put forward 8,993 suggestions, among which, the people's well-being was the biggest topic of discussion. For example, they discussed easing the burden of excessive homework and off-campus tutoring for students undergoing compulsory education, improving rural elderly care service systems, advancing a "toilet revolution" in rural areas, promoting the sorting of urban household waste, and improving social security for flexible employees such as delivery personnel. The suggestions bear the people's pursuit for a better life, reflect their aspirations, and demonstrate the responsibilities that the deputies have shouldered to hear the people's voices, pool the people's wisdoms, and benefit the people's lives. State organs carefully review the suggestions proposed by the deputies in accordance with law, and research and adopt reasonable suggestions in their work, including in their decision-making. They respond actively to social concerns and each and every one of the people's aspirations. 

Thank you. 

Global Times:

Some countries claim to be models of democracy for the whole world, but their response to the pandemic was awful and their social governance disordered, which is contradictory to that message. What are the functions of democracy? What are the standards for evaluating democracy? Thank you. 

Tian Peiyan: 

Democracy is not a decorative ornament, but an instrument for addressing issues that concern the people. True democracy should both take full cognizance of and fully realize the people's aspirations; give full expression to diversified opinions and advice, and form the united will of all the people; spur social creativity and vitality to the largest extent, and uphold social equity and justice effectively. 

For a long time, America has claimed itself as a model of democracy for the whole world. However, in the face of a pandemic unseen in a century, the American democratic system has exposed numerous of its maladies. In responding to the pandemic, due to serious political polarization, endless disputes among political parties, lack of coordination in different levels of government, and malfunctions in social oversight, America has failed to prevent and control the pandemic, which resulted in infections of nearly 50 million people and a death toll of more than 800,000. Such democracy will only bring disasters rather than happiness to the electorate . 

In the face of COVID-19, the CPC and the state have prioritized the people by putting their lives and health first, confidently risen up to the challenges and made resolute decisions, waging an all-out people's war against the virus in the shortest possible time. We have leveraged our institutional strengths to mobilize the whole nation and carried out a campaign to save lives on an unprecedented scale, which have reflected the country's nationwide coordination and solidarity. We have done everything possible to treat all patients, ranging from new-born infants to centenarians, saving countless lives. This has fully demonstrated that China's democratic system respects and protects everyone's life. 

How do you evaluate whether or not a country's political system is democratic and efficient? General Secretary Xi Jinping has given a definitive answer: It mainly depends on whether the succession of its leaders is orderly and in line with the law; whether all the people can manage state and social affairs and economic and cultural undertakings in conformity with legal provisions; whether the public can express their requirements without hindrance; whether all sectors can efficiently participate in the country's political affairs; whether national decision-making can be conducted in a rational and democratic way; whether people of high caliber in all fields can be part of the national leadership and administrative systems through fair competition; whether the governing party is in charge of state affairs in accordance with the Constitution and the law; and whether the exercise of power can be kept under effective restraint and supervision. History has proven that the China's style democracy works well in China. History will prove that the CPC will lead the Chinese people to enrich and improve the Chinese way of democracy, so that the tree of democracy will flourish with vitality. Thank you.

CGTN:

Some people think that China is exporting its model by virtue of its growing strength, which poses threats and challenges to the "world's democracies." What's your take on this? 

Xu Lin:  

Thank you for your question. First of all, I would like to point out that the concept of "world's democracies" is a false proposition concocted by a few countries. Democracy is the common value of humanity and a shared wealth of global political progress. Democracy is the right of the people in every country, rather than the prerogative of a few nations. It is for its people to judge whether a country is democratic or not, and it is up to the international community to judge whether a country is democratic or not. As Mr. Tian Peiyan just said, certain countries pose as the "model of world democracy" and "beacon of democracy" while failing to combat the pandemic, suffering chaotic domestic governance and severe political polarization, and imposing hegemony and bullying other countries. Doesn't it sound absurd? At present, the cause of human democracy stands at a crossroad between progression and regression. Some countries are inciting confrontation and division globally in the name of democracy and aggravating international tensions, and became a source of chaos in the world. It is clear to all who is threatening the cause of human democracy and becoming an obstacle to world peace and development. 

Democracy is an ideal that has always been cherished by the CPC and the Chinese people. This has been reflected in the main content of the white paper and in the statements made by other speakers in their answers. China is fully confident in our way of democracy. In active response to the people's needs and expectations for democracy, China has developed the whole-process people's democracy and established a democratic system covering a population of more than 1.4 billion from 56 ethnic groups living on 9.6 million square kilometers of land, making possible the widest participation of all its people.

Just now, Mr. Guo Zhenhua said that more than 1 billion voters have participated in the ongoing elections for deputies to the people's congresses at the county and township levels. Since the initiation of reform and opening up, China has held 12 direct elections to people's congresses at the township level and 11 direct elections to those at the county level, with a current participation rate of about 90%. We have a host of data and records on this. These facts together reflect the real situation of China's democracy and vividly demonstrate that the people are masters of the country.

China has developed the whole-process people's democracy here in our country and promoted democratic relations between nations. China upholds the principle that all countries, large or small, strong or weak, rich or poor, are equals. China does not copy from another country's political systems, nor do we ask other countries to replicate our practices. We believe that democracy comes in many forms in the richly diverse world and each country has the right to choose its own path to democracy. We are ready to strengthen exchange and mutual learning with other countries to jointly advance the political progress of mankind. Thank you. 

Chen Wenjun:  

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

Translated and edited by Wang Qian, Zhu Bochen, Li Xiao, Wang Yanfang, Liu Sitong, Zhou Jing, Mi Xingang, Wang Wei, Lin Liyao, Zhang Junmian, Cui Can, Liu Qiang, Zhang Rui, Huang Shan, Zhang Jiaqi, Li Huiru, Liu Jianing, Zhang Liying, Xu Xiaoxuan, Wang Yiming, David Ball, Daniel Xu, Tom Arnstein and Drew Pittock. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Yan Cheng, executive director general of the Beijing 2022 Main Operation Center

Zhao Weidong, director general of the Media and Communications Department of the Beijing Organizing Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG) and executive deputy director of the Publicity Department of the CPC Beijing Municipal Committee

Yang Jinkui, director general of the BOCOG Paralympic Games Integration Department

Yu Bo, chief of Yanqing district, Beijing

Zhao Wenfeng, mayor of the Zhangjiakou Municipal People's Government, Hebei province 

Chairperson:

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

Date:

Dec. 3, 2021

Xing Huina:

Good morning, friends from the media. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Yan Cheng, executive director general of the Beijing 2022 Main Operation Center; Mr. Zhao Weidong, director general of the Media and Communications Department of the Beijing Organizing Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG) and executive deputy director of the Publicity Department of the CPC Beijing Municipal Committee; Mr. Yang Jinkui, director general of the BOCOG Paralympic Games Integration Department; Mr. Yu Bo, chief of Yanqing district of Beijing; and Mr. Zhao Wenfeng, mayor of the Zhangjiakou Municipal People's Government of Hebei province. They will brief you on the latest progress of the 2022 Olympic and Paralympic Winter Games preparations and updates on the Yanqing and Zhangjiakou competition zones and then take your questions.

First, I'll give the floor to Mr. Yan Cheng.

Yan Cheng:

Thank you. Good morning, friends from the media. Nice to see you. I would like to brief you on the latest progress of the 2022 Olympic and Paralympic Winter Games preparations in the three competition zones of Beijing, Yanqing and Zhangjiakou.

At present, delivering a successful "Experience Beijing" testing program is a major task for the three competition zones. From Oct. 5 to the end of December this year, 10 international competitions, three training weeks and two domestic trials have been and will be organized in an orderly manner, with the aim of testing all elements of the Games.

Up to now, six events hosted by the Beijing competition zone including the Short Track Speed Skating World Cup, five events hosted by the Yanqing competition zone including the Luge World Cup, and the Ski and Snowboard Cross World Cup event hosted by the Zhangjiakou competition zone, have all successfully concluded. More than half of the events have finished. In December, the Zhangjiakou competition zone will also host three events: the Nordic Combined Continental Cup, Ski Jumping Continental Cup and biathlon international training week.

The test events which have ended all progressed well, achieving the set test goals and receiving positive comments from international sports organizations, athletes and global media.

The main features of the test program are as follows. 

First, the event management was in line with international standards. The test competition organizing committee and venue management team cooperated with individual international sports organizations to complete the competition registration, schedule planning, venue preparation, equipment preparation and other tasks in an orderly manner. All of the work aligned well with the competition rules and technical specifications of the Winter Olympics. The team fully seized the opportunity to gain experience in competition organization. With domestic technical officials as the main body along with international technical representatives and experts, the team jointly completed the whole process of competition preparation, operation, review and evaluation. The whole process of organizing a competition has been fully tested. From meeting the competition schedule and training schedule to the provision of complete services, the process went smoothly and in compliance with the Olympic rules. Kit McConnell, sports director of the International Olympic Committee (IOC), commented that the IOC has received unanimously positive feedback from athletes in the Beijing 2022 test series.

Second, technologies were introduced in the venues and facilities. The relevant test venues and facilities each have their own features, which all meet the technical standards required by the Winter Olympics and have employed a series of scientific and technological innovations. As the world's first Winter Olympic venue using carbon dioxide transcritical direct cooling ice making technology, the National Speed Skating Hall continued to improve its ice making skills and produced a high-quality ice surface. Some athletes achieved their career-best performances at the venue and called the "Ice Ribbon" the "fastest ice surface." The National Snowmobile and Sled Center features a long track with large slopes and numerous curves. Through technological innovation, the accuracy and temperature control problems of the track have been solved. For the first time, concrete for a 360-degree loop was applied in a single application. The center, dubbed the "Snow Dragon," meets the requirements for hosting competitions. As professional venues for the Winter Olympics sports, these stadiums also showcase China's scientific and technological strength.

Third, the staff were in position and venues and facilities in place, just as they will be for the upcoming Winter Games. Under the direct command of the leading group of the 24th Winter Olympic Games, the command system during the Games entered full operation. The Main Operation Center, serving as the central organization, played a leading role in coordinating all venues in the various competition areas. Directors of all venues shouldered responsibilities in resource allocation, event operation, service provision and emergency response, ensuring that 98% of the problems were resolved on the scene. The venue staff were all in position, worked together across different departments and fulfilled their roles in presenting the sports, providing technical support, TV broadcasting and in other areas, so as to test all elements for the Olympic Games. Cooperating with the venue staff, relevant local governments also carried out their tasks in epidemic prevention and control and assigning personnel.

Fourth, services were provided with a person-centered approach. Requirements were met in detail and high-quality services were provided in all aspects including clothing, food, accommodation and transportation of athletes and relevant personnel. For example, hotels during the test events sold licensed merchandise at reception and provided a variety of food and beverages including coffee. Athletes who celebrated their birthdays received wishes, which was heartwarming, and for another example, barrier-free facilities were optimized. During the World Wheelchair Curling Championship, carefully designed and barrier-free ramps were installed in venues to facilitate people with disabilities. The person-centered service was lauded by Kate Caithness, president of the World Curling Federation. 

Fifth, strict COVID-19 prevention and control measures were taken. Under the leadership of Beijing municipality and Hebei province, we implemented epidemic prevention and control measures during the test events while complying with the prevention requirements of each city. The BOCOG, IOC and the International Paralympic Committee (IPC) jointly released the first playbook that outlines anti-COVID-19 measures, and consensus was reached among various stakeholders. In accordance with the requirements of "one test, one policy" and "one venue, one policy," every venue strictly implemented epidemic prevention plans and imposed prevention and control measures such as remote monitoring, vaccination, closed-loop management and nucleic acid testing in accordance with the epidemic prevention standards during the Winter Olympics. During the test events, the closed-loop management during the whole process meant that athletes and organizers were separated from the general public to protect everyone's health, which was recognized by all parties at home and abroad.

While the trials were held, preparatory work for the Winter Olympics continued to deepen. All 12 competition venues have been completed and ready for hosting competitions. For instance, the ice event venues have completed ice-making and track preparation work for the snow event venues are progressing smoothly. Meanwhile, the Winter Olympic Villages in the three competition zones are completed and newly decorated, illuminating floor lamps in the buildings one after another, and carrying out a series of full-process, full-factor and scenario-based operational stress tests. The operation teams of all competition and non-competition venues have been established, with personnel in place, ready to welcome the arrival of the Games. Accommodation, catering, transportation, medical care, security and other services are advancing in an orderly manner. Preparations for the torch relay and opening and closing ceremonies have been strengthened day-by-day, and publicity and promotion activities have continued to increase. It is worth mentioning that on Nov. 28, the BOCOG and the IOC co-launched a comprehensive drill entitled "One Day in Competition," triggering different emergency scenarios, conducting a comprehensive inspection of the Winter Olympics' command, dispatch and emergency response capabilities, and laying a solid foundation for the Games to be held on schedule, safely and smoothly.

Next, we will make effective responses to the COVID-19 pandemic, optimize the organization of the competition, improve the venues' operation mechanisms, ensure the service guarantee for the Games, and further strengthen the training and drills for the organizing personnel, as we sprint toward the finish line and strive to win the final victory in the preparation work. During this period, we welcome media friends and people from all walks of life to send us valuable opinions and suggestions.

We firmly believe that under the strong leadership of the CPC Central Committee and with the strong support of Chinese people, together with the international community, the 2022 Olympic and Paralympic Winter Games will be a resounding success, and we will present a streamlined, safe and splendid Games to the world.

Thank you!

Xing Huina:

Thank you, Mr. Yan, for your introduction. Now everyone can start asking questions. Please state which news organization you are with before asking questions.

Beijing Youth Daily:

My questions are about meteorology. During some competition events, the quality, amount, and temperature of snow, as well as visibility and wind speed will all affect athletes and referees. Previously, the meteorological and environmental departments predicted that the weather and meteorological conditions would be more complicated and severe this winter and next spring. How will the BOCOG guarantee meteorological services? In addition, this is also the first time that the Winter Olympics will be held in a continental monsoon climate. Extreme weather may be more prone to occur during the turn of winter and spring. Do you have any ways of dealing with that? Thank you.

Zhao Weidong:

Thank you for your questions. Beijing 2022 will be the first Winter Olympics in the history to be hosted in a continental monsoon climate zone. Located at continental monsoon climate zone, Beijing and Zhangjiakou have a transitional season of winter and spring from February to March each year, and there are indeed extreme weather conditions such as low temperatures, strong winds and little snow, as well as sand and dust. Among them, strong winds may have an impact on the snow events. The mountainous terrain of Yanqing and Zhangjiakou, where the snow event venues are located, is more complicated. According to meteorological experts, the weather conditions in these two places are volatile, and it is indeed very difficult to forecast weather accurately. In despite of these challenges, we believe that as long as we do our best, respect science and trust experts, we will always have a way.

In order to guarantee meteorological services, we actually began arranging the related work very early. Four years ago, the China Meteorological Administration established the Winter Olympics Meteorological Center. The staff at the Winter Olympics Meteorological Center focused on two areas: one was the hardware construction of weather facilities, and the other was forecast services. They built two weather forecast radars and more than 50 weather tracking stations at Haituo Mountain in Beijing's Yanqing district, and at Kangbao County in Hebei's Zhangjiakou. The three-dimensional weather monitoring network they built is capable of capturing multiple factors within a second. This center has monitored and collected meteorological data for mountain racetracks for five consecutive years and compiled relevant meteorological reports and meteorological risk analysis assessments, which they've provided to the IOC, the Association of the International Olympic Winter Sports Federations (AIOWF), the Olympic committees of various countries (regions) and various stakeholders, providing relevant information such that everyone can prepare for meteorological risks in advance.

Meanwhile, the meteorological department also selected the best weather forecast service personnel in the country and formed a 52-person team for the Beijing Winter Olympics, equipped each snow venue and sliding venue with the best weather forecasters, and made it possible for them to get hands-on experience with winter sports events at home and abroad for the past four years. What's more, they have also been stationed at the Beijing Winter Olympics venues during the snowy season to carry out weather forecasting drills and further understand the weather conditions at the venues, as well as the weather's changing nature. Based on the current feedback from the meteorological department, the team's ability to accurately forecast the weather is improving year by year, and we should have full confidence in them. When the Games start, venue weather forecasters will maintain close communication with technical experts from the AIOWF to help make accurate judgments and any necessary adjustments to the events.

As the reporter just mentioned the possibility of extreme weather, the BOCOG is working with the IOC, relevant international winter sports federations and Olympic broadcasting companies to jointly study and compile an emergency agenda for the Beijing Winter Olympics. Once any extreme weather occurs during the Games, we will promptly start the management procedures for changing the competition schedule, make every effort to prepare for any emergency scenario and minimize the adverse effects of extreme weather on the Games.

All in all, the BOCOG will work with relevant departments to strengthen the meteorological service guarantees and ensure the smooth running of the Beijing Winter Olympic events. thanks.

CNR:

China's winter sports industry started relatively late, and there is a lack of high-level organizational talent. I would like to know how the BOCOG promotes the development and nurturing of talent based on the needs of hosting competitions? Thank you.

Yan Cheng:

Let me answer your question. Thank you for your attention to the organizational talent recruitment for the Winter Olympics and Paralympics. Indeed, just as you said, the foundation of China's ice and snow sports is relatively weak, and there is a lack of high-level organizing talents. Since its establishment, the BOCOG has conscientiously studied and implemented General Secretary Xi Jinping's important instructions on the preparation of the Winter Olympics and the cultivation of talent, fully implemented the new ideas, new strategies and new measures for talent work in the new era, and focused on selecting and promoting talents with a global perspective, and exploiting the institutional advantages to cultivate talents in a systematic way, all while striving to attract talents from across the world and give play to their expertise. Next, I would introduce the following aspects:

First, we have strengthened the organizing teams by introducing 86 policies for talents and establishing and improving the mechanisms for talents development and management, such as selecting officials, recruiting staff, experts, and interns, in order to pool more talented people. Particularly, we have launched international recruitment and selected a number of foreign staff who worked for previous OCOGs and returnees from overseas study, which, to some extent, have improved the BOCOG's talents structure.

Second, we have developed and fostered professional talents with a focus on cultivating domestic talents through our own efforts. During the past six years, we have altogether cultivated more than 4,000 domestic technicians, 23,000 event service and support staff, and a large number of technicians in ice-making and resurfacing, snow-making and pressing, and so on. As for the shortage of a small number of talents, we have stepped up international exchange and cooperation, selected and recruited 40 foreign experts from 18 nations, and opened 400 jobs globally to employ foreign professionals. Thus, we have advanced the cultivation of domestic talents to some extent while undertaking the task of hosting events.

Third, we have made good use of talents through multiple measures. As the 2022 Winter Olympics enters the stage of event trail operation, we have emphasized that all kinds of talents should stay in their positions in venues. We have sent selected members from BOCOG to work in venues, and also employed a group of temporary staff from all sectors in host cities to participate in hosting the Games. Meanwhile, we have arranged volunteers and contractors to come to work on time. To date, all operating teams in competition and non-competition venues have been established, and the staff is ready in their positions. All kinds of talents will play their due roles in the venues. Thank you. 

Cover News:

The influence of disability sports has extended far beyond the sports itself, which is the same as the sports for able-bodied people. In the 16th Paralympic Games, the Chinese delegation ranked first in the number of gold medals as well as the total medals for five consecutive events. The 2022 Beijing Winter Paralympic Games is approaching. What is the meaning of sports for people with disabilities? What effects does the preparation for the Winter Paralympics have on improving the condition for and developing the cause of people with disabilities? Thank you. 

Yang Jinkui:

I will answer this question. Thank you for your question and your concern for the development of disability sports. Sport has special meanings and important functions for people with disabilities. First, it helps in the rehabilitation, treatment, and building of strong bodies. People with disabilities take part in sports since their rehabilitation treatment, and they can improve their health condition and physical performance through exercise, which is beneficial to their recovery. 

Second, it helps them to break through limitations and overcoming obstacles. When playing sports, people with disabilities overcome their physical defects and physiological barriers with strong willpower, skills, and physical power, and thus display the creativity and value of humanity. 

Third, it helps them to embrace a wider world. The sports activities help people with disabilities go out of hospital wards and their houses to embrace a wider world so that they can connect with others, feel the warmth of society, rebuild confidence in life, and join in social activities like able-bodied people. 

Fourth, it helps them to influence and improve the society. People with disabilities demonstrate their ability by participating in sports activities. The spirit of unremitting self-improvement, optimism, and forging ahead influence and encourage society at large to better understand and care more about people with disabilities. Therefore, it helps to improve our civilization and build a more inclusive society. 

As for the second question, I believe that hosting the Beijing Winter Olympic Games and Paralympic Games will help to improve the conditions and the development of the cause of people with disabilities in many aspects. 

In terms of policy, all kinds of policy documents released to host the Winter Paralympics will serve as references for making beneficial and helpful policies for people with disabilities. In terms of infrastructure, the venues and facilities upgraded for the Winter Olympics and Paralympics can serve people with disabilities after the games and act as an example for how to improve the accessible environment of our cities. In terms of sports, more people with disabilities can know about, love, and participate in winter Paralympic sports, which demonstrates the Paralympic values of courage, determination, inspiration, and equity, and advances the building of an inclusive society. In terms of cultivating talents through preparation work, China has systematically cultivated a number of internationalized professionals who are familiar with winter Paralympic sports, have gained a good command of games rules, and understand their operating mechanisms. That has laid a solid foundation for developing the winter Paralympic sports in an all-rounded way and to a higher level. In terms of cultural publicity, we should spread knowledge about the Winter Paralympics, arrange training about Paralympics knowledge and skills to help people with disabilities, organize volunteer services, and hold relevant cultural activities. In these ways, the public will know more about the Paralympic spirit and the principle of accessibility and inclusivity. They will care more about and give more support to rehabilitation, education, employment, health care, and social security of people with disabilities, which will greatly advance social progress.

In general, this Winter Paralympics will create a fine environment for people with disabilities to better participate in social activities. The legacies of the Winter Paralympics will push forward the improvement of the conditions for people with disabilities in a long-lasting way. We are confident of that. Thank you. 

Russia Today:

I would like to ask about the details of the work for foreign journalists based in Beijing for the upcoming Olympic Games. In particular, I'd like to ask if the journalists who will work in the circled Olympic bubble will be able to move between Beijing, Yanqing, and Zhangjiakou, or whether they will need to stay only in one cluster. Also, I'd like to ask, will Beijing-based journalists be quarantined before and after Olympics, and if so for how many days? Thank you. 

Zhao Weidong:

I will answer this question. All registered journalists are concerned about this question. Actually, our first editions of COVID-19 playbook for the 2022 Winter Olympics and Paralympics have clarified these questions. Specifically speaking, the registered journalists under the closed-loop management can move freely between Beijing, Yanqing, and Zhangjiakou. Considering the still severe and complex global pandemic, in order to prevent possible epidemic spread and ensure the health and safety of all participating parties, according to China's epidemic prevention and control experience and relevant requirements, we have researched meticulously with the IOC and the IPC and decided to install a closed-loop management system for all Games participants. On Oct. 25, we published the first editions of the Beijing 2022 Playbooks with the IOC and the IPC. The second edition will be released this month. All the efforts are to ensure that the Beijing Olympics be held under the safest conditions. 

The closed-loop management will not limit the free movement of any registered person inside the closed-loop. Registered participants can move freely inside the closed-loop area, traveling in dedicated vehicles between games venues and accommodation facilities and between the three competition zones of Beijing, Yanqing, and Zhangjiakou.

We will provide people registering for the Beijing Winter Olympics with two efficient means of transportation to travel fast between the three competition zones and between venues within the same competition zone. The following are major modes of transportation:

First is the Beijing-Zhangjiakou high-speed railway that connects three competition zones. Registered personnel will travel by railway free of charge across three competition zones during the Winter Olympics. The high-speed railway is designed to reach 350 km per hour. The journey between Beijing and Yanqing takes about 20 minutes. The travel time between Beijing and Zhangjiakou will be about 50 minutes. We will also increase its train frequency to provide sufficient transportation capacity to meet demands of various stakeholders during the Games.

The second is the shuttle bus service. We will offer inter-zone transport by shuttle buses and a 24-hour shuttle bus service between three competition zones to meet transportation demands of the press and other stakeholders beyond operating times of the high-speed railway. In addition, you may have noticed that we have marked new lanes on some roads in Beijing. Participants will use these special lanes to shorten travel time between destinations effectively.

Apart from these, you may also use a toll card to take taxis, satisfying personalized transportation demands within the closed-loop. These taxis will be used by drivers designated by the BOCOG and will only travel within the permitted areas and between venues on the list of destinations within the loop. This is my answer to your question regarding movement between the three competition zones.

While regarding your question about going out of the loop after the Games, there are two situations. On the one hand, for those inbound personnel who are registered for the Beijing Winter Olympics and to leave China immediately after the Games, the BOCOG will provide nucleic acid testing service and related certificate for international travel within 48 hours before their departure. Also, a dedicated team will assist them in completing health declaration procedures within 24 hours before their departure. On the other hand, those inbound personnel who will stay after the Games to work or live in China will be placed in centralized quarantine according to specific circumstances. They can only leave the loop after the quarantine is over. Experts will decide the periods of quarantine based on different workplace scenarios. Related information can be found in the playbook for COVID-19 countermeasures. To sum up, if people are to stay in China after going out of the closed-loop, we will require them to be quarantined for some time to ensure safety in terms of epidemic prevention. 

Chosun Ilbo:

The playbook for COVID-19 countermeasures released in late October didn't contain specific provisions on the invitation to heads of state. All governments are paying much attention to this. Could you please give us some more information? Also, Chinese organizers made it clear that tickets for the Beijing 2022 Winter Olympics and Paralympics will be sold exclusively to spectators residing in the Chinese mainland who meet the requirements of COVID-19 countermeasures. Do you have any attendance restrictions, for example, the condition on the percentage of seating capacity? Thank you.

Zhao Weidong:

Let me answer your questions. First, the BOCOG has always upheld the concept of hosting the Games openly. Therefore, we welcome guests from all countries and all walks of life to engage in various forms of participation in the Beijing 2022 Winter Olympics and Paralympics. Jointly, we will deliver an excellent, extraordinary, and outstanding Winter Olympic Games for the world.

Regarding invitations to global leaders, distinguished international guests attending the Winter Olympics and Paralympics refer to heads of state, heads of government, sports ministers from countries participating in the Games, and other important government officials attending the Winter Paralympics. These international dignitaries attend the Winter Olympics and Paralympics at the invitation of their respective national and regional Olympic and Paralympic committees, instead of the IOC and the Olympic organizing committee of the host country. The national and regional committees also submit registration applications for their dignitaries and pay for related fees. You may consult with respective national and regional Olympic committees for related information. 

The public has also paid much attention to the audience of the Winter Olympics. According to key COVID-19 countermeasures jointly released by the BOCOG, the IOC, and the IPC, on September 30, we made it clear that tickets will not be sold to spectators residing outside of the Chinese mainland. As for detailed anti-epidemic requirements for spectators living in China's mainland, as well as arrangements for ticket selling, all these are being studied and developed and will be unveiled in time once established. We are also maintaining close communication with the IOC and the IPC. We will adjust measures regarding audience participation and ticket selling according to the latest epidemic prevention and control situation. Thank you. 

Southern Metropolis Daily:

The upcoming Winter Olympics has triggered increasing popularity for ice and snow tourism. So, my question is: How will Zhangjiakou integrate sports into the city and take the opportunity of the Winter Olympics to increase its influence?

Zhao Wenfeng:

I will answer this question. Thanks for your attention to Zhangjiakou. As we all know, with Beijing 2022 approaching, Zhangjiakou's ice and snow tourism brand is becoming more and more popular. In 2018, Zhangjiakou was listed as one of the top 10 ice and snow tourism cities in China. More specifically, Chongli District was rated a potential area for ice and snow tourism investment and was selected by the New York Times as one of the 52 global destinations worth visiting in 2019. Likewise, at the beginning of this year, Zhangjiakou was awarded the "2020 Chinese Winter Tourism City Case," and as recently as a few days ago, Taiwoo Resort Village was named the national sports tourism demonstration base. With the city's increasing popularity, more and more tourists are visiting Zhangjiakou to experience its winter scenery and realize their passion for ice and snow. During the 2020-2021 snow season, Zhangjiakou received 2.462 million tourists.

"The Olympic Games are brilliant because of the city, and the city is better because of the Olympic Games." Since successfully bidding for the Winter Olympics, ice and snow sports have gradually enjoyed a larger place in the public consciousness. With nine comprehensive ski resorts in the city, continuous improvements being made to relevant sporting facilities, an increasingly robust ice and snow sports education and training system, and the promotion and popularization of ice and snow sports in the city have achieved steady progress. Zhangjiakou has seen five million people participating in snow and ice sports so far, and the number is expected to reach 5.5 million by 2025. In terms of the ice and snow industry, we adhere to the notion that "ice and snow are also invaluable assets" to promote the development of the entirety of the ice and snow industry. At present, many world-famous ice and snow equipment manufacturers such as TechnoAlpin of Italy and MND of France have "settled" in Zhangjiakou and gone into operation. It is expected that by 2025, the city will introduce and cultivate more than 80 ice and snow equipment manufacturing enterprises.

In the post-Winter Olympics era, we will fully implement the plan to sustainably utilize the Winter Olympic legacy, seize the opportunity and take advantage of the situation.

First, promoting the sustainable utilization of venues and supporting facilities after the Games. We will study and formulate unique plans, clarify business operations, combine the utilization of venues after the Games with the overall development of the competition area, and maximize the advantages of transportation, location and facilities in Taizicheng area where the venues are located. We will also vigorously develop the economies of the event, exhibition and research, and build the core area of the Winter Olympic Games into an important base for sports, culture, science and technology, as well as business exchanges at home and abroad. We will ensure that the Olympic Games are wonderful and that the venues are functional, operable and sustainable after the Games. 

Second, speeding up the construction of the Beijing-Zhangjiakou sports cultural tourism belt. We will adhere to the driving strategy of sports, culture and tourism, formulate and implement the Construction Plan of Beijing–Zhangjiakou Sports Cultural Tourism Belt, accelerate the development of sports cultural tourism brand products, major projects and diversified business forms, and focus on building tourism products such as Chongli International Ice and Snow Tourism Resort, Yanhuai River Valley Grape Health Tourism Area and grass skyline leisure drive tourism area. We will also accelerate the construction of a sports cultural tourism industry chain that reflects the spirit of Zhangjiakou, and strive to build an international ice and snow sports and leisure tourism resort.

The third is to proactively improve the quality of the city of Zhangjiakou. Focusing on shaping the characteristics of a Winter Olympic city, we will build a number of urban infrastructure and public service facilities that meet international standards, construct a number of landmark urban architectural communities that reflect the Olympic cultural style and build a number of blocks with characteristics of an Olympic city. We will promote the leapfrog improvement of urban construction, management and service level, and build a Winter Olympic city brand with international influence. Thank you.

Beijing Radio & Television Station:

As we know, Yanqing district has just completed the "Experience Beijing" series of winter events, including the FIL Luge International Training Week and the FIL Luge World Cup. The FIL Luge World Cup, in particular, was the first world-class luge event held in China. Please brief us on the overall situation of the test activities. In addition, how did Yanqing district organize the events and guarantee the services? Thank you.

Yu Bo:

I will answer this question. Thank you and thanks to the media for your attention to the FIL Luge International Training Week and the FIL Luge World Cup. Let me first introduce these test activities in general. From Nov. 4 to 22, the Yanqing competition area of Beijing 2022 hosted the FIL Luge International Training Week and the FIL Luge World Cup. A total of 280 Chinese and foreign athletes, as well as team officials from 27 countries and regions participated in the events. In accordance with Winter Olympic standards and the requirements of "ensuring that all those in need are tested," we carried out comprehensive tests of the competition organization, epidemic prevention and control, television broadcasting, external support and other work.

The FIL Luge World Cup held in Yanqing marks the International Luge Federation (FIL)'s 2021-2022 season opener. It is also the first time that China held a World Cup level luge event. It is an important leg, in which athletes can meet their quota for the luge event of Beijing 2022, and its program is exactly the same as the Winter Olympics. During the World Cup, the National Sliding Center welcomed 300 spectators to the scene, making it the first test that included an audience for the "Experience Beijing" series.

On the whole, the guarantee of venue facilities is in place, the competition organization is stable and orderly, the epidemic prevention and control is accurate and effective, and the competition service is meticulous and thoughtful. FIL president Einars Fogelis gave a thumbs-up to the venues that comprise the National Sliding Center and the events during the FIL Luge International Training Week. "It's an amazing venue, it's very great and a nice present for our sport," he said, adding "From the athletes' side, you provide all what's necessary for the athletes, for the training and for the officials in the highest level."

Let me introduce the event organization and service guarantee. First, the command system is streamlined and efficient. The Yanqing competition area organizing committee has a venue group command center, which coordinates and dispatches various headquarters such as the sled and luge venues, Banquan comprehensive service center, comprehensive service support, urban operation and peripheral service support, effectively connecting those support services across various fields such as accommodation, catering, transportation, medical treatment and epidemic prevention through the daily operation schedule, so as to achieve the high quality and efficiency of all work inside and outside the venue.

Second, we organized the competition in an orderly and stable manner. The venue operation team built a seamless joint mechanism with the FIL, through which face-to-face communication was conducted on a daily basis to address relevant issues and collect and respond to athletes' concerns and needs in a timely manner. The hardware facilities and ice surfaces at the venue was consistently improved to ensure success for the training and competition. As the event organization got increasingly smooth and athletes grew more familiar with the race tracks, their speeds increased, with a recorded top instantaneous speed of 135.1 km/h. Noticeably, China's athlete won qualification for the Luge World Cup for the first time, creating history. 

Third, we have devised targeted and effective anti-epidemic measures. We have built a three-tiered system for epidemic prevention and control, namely "inside the closed-loop, outside the closed-loop and periphery," and have accordingly installed quarantine facilities, posted anti-epidemic tips and plugged loopholes. We have ensured separated management of personnel throughout transportation, board and lodging, and competition. We adopted a "loop within loop" approach for close contacts of confirmed cases found during the test event to avoid cross-infection. 

Fourth, we have provided meticulous and considerate services. In terms of medical care at the competition venue, we have maintained close contact with the FIL and clarified rescue routes. A total of four ambulances were on standby and provided medical services for 51 athletes. It took an average of three minutes to arrive at the sites of rescue. The shortest time it took to complete preliminary bandaging, diagnosis and treatment was six minutes. In terms of catering services, to lower the risk of cross infection, we divided the catering area, and the number of support personnel we provided meals and beverages to was 90,507 person-times. In terms of transportation, we had shuttle services available from the hotel to the competition venue, and the number of trips made reached 1,986, transporting personnel totaling 18,551 person-times, among which 3,759 were for athletes. Under the joint efforts of various parties, athletes and all the other relevant parties were appreciative of the competition services. Thank you. 

CRNTT:

Abundant snowfall is a foundation of the Winter Olympic Games. There have been reports that the snowfall in the host city of Beijing 2022 is relatively less, so successfully hosting the competitions largely depends on artificial snow. However, artificial snow may affect the environment as well as household water. How do you perceive this? How can Beijing 2022 achieve "snowfall freedom" in a scientific and green way? Thank you.

Yu Bo:

Thank you for your attention to the issue of snowfall. The National Alpine Ski Center began producing artificial snow on Nov. 15 and is estimated to complete snowmaking by the middle of next January. The Yanqing competition zone has adhered to the principles of storing water in multiple ways, recycling water, and conserving water with the aid of technology in a bid to meet the snowmaking water demands for the Games and avoid negative impacts on regional water safety and the ecological environment at the same time. Let me go into more details.

First, there are multiple ways of storing water. The National Alpine Ski Center preferred natural precipitation and overland runoff as its first choice of water resources for artificial snow production. Yanqing district boasts ample precipitation, and this year particularly, the accumulated amount of precipitation has reached 739.9 millimeters, which represents an increase of 231.6 millimeters compared to average annual amount over the past five years. Noticeably, the Yanqing competition zone had a snowfall of 19.5 millimeters, which was very heavy, on November 6 when Beijing welcomed its first snow this winter. Additionally, three reservoirs with a combined water-holding capacity of roughly 180,000 cubic meters have been built in the Yanqing competition zone to store surface water as much as possible for snowmaking and green conservation purposes. In addition to natural precipitation, the extra water required for snowmaking will be provided by Foyukou Reservoir and Baihepu Reservoir. According to our statistics, the amount of water required for the Games only accounts for 1.6 percent and 0.4 percent of the current water consumption of Yanqing district and its total amount of water resources respectively. Storing water in multiple ways has fully ensured the water needs of the National Alpine Ski Center for snowmaking.

Second, we adhere to the recycling use of water. The entire Yanqing competition zone has water-conservation measures in place which cover construction planning, engineering management and daily use. On the one hand, we designed measures for snowmelt to flow to a small reservoir through channels in the competition zone to be used for snowmaking during the next snow season and for daily green conservation. An internal recycling of snowmaking water is thus formed to conserve and protect water resources as much as possible. On the other hand, a sewage treatment station has been built in the competition zone as part of the municipal facilities for the Games. The reclaimed water will be used for road watering, greening, irrigation, toilet flushing and so on. These water recycling measures have significantly boosted the efficiency of water resource utilization.

Third, we adhere to technology-driven water conservation. The National Alpine Ski Center boasts the world's most advanced water-efficient snowmaking facilities and intelligent snowmaking system. Through real-time monitoring of the meteorological conditions, we are able to start the snowmakers under the most suitable conditions. Additionally, we can dynamically maintain the most ideal snowmaking efficiency in line with the external environment, so as to avoid any water resource waste. Thank you.

Zhao Wenfeng:

I will introduce the situation in Zhangjiakou. It is an international practice that whatever the amount of snowfall in a host city of the Winter Olympic Games, all the competition fields for snow events are required to maintain snowfield conditions with the aid of artificial snow in a bid to provide equal competition conditions for all athletes.

Chongli district, where the Zhangjiakou competition zone is located, has a continental monsoon climate with the typical characteristics of a mountain climate. Due to its topography, the precipitation in Chongli is significantly greater than that of its surrounding areas. By various measures, such as collecting overland runoff and snowmelt, we have effectively guaranteed the water needs for snowmaking and achieved both sustainable use of water resources and ecological environment protection. Efforts are mainly demonstrated in the following three ways.

First, we recognize the importance of conserving ecological water. We have coordinated the preparations for the Games with the improvement of the local ecological environment, and vigorously conserved water sources. The forest coverage rate in Chongli district has reached 67 percent now from the 52 percent in the bid year of 2015. In the core competition zone, the forest coverage rate has surpassed 80 percent. Precipitations in the urban area of Chongli and the core zone for the Winter Olympic Games have increased from 458 millimeters and 677 millimeters to this year's 537 millimeters and 730 millimeters, respectively. At the beginning of November, Zhangjiakou welcomed heavy snow and the maximum snowfall in the Games' core zone reached 26 centimeters, providing favorable conditions for snow use during the Games.

Second, we have paid special attention to optimizing surface water use. The core area of the 2022 Beijing Winter Olympics boasts a well-preserved ecological environment and abundant surface runoff resources. We established 11 open reservoirs, underground collection pools for snowmelt and landscape lakes at the Genting Snow Park and in the Guyangshu area, which have a total storage capacity of 530,000 cubic meters. In the Guyangshu area specifically, daily dynamic replenishment of regional surface runoff has reached 13,000 cubic meters, and surface runoff, together with the current storage capacity, can fully meet the snowmaking needs. 

Third, we have paid special attention to scientific water conservation. Efficient water-saving artificial snow-making equipment and intelligent snow-making systems have been applied at both of the venues, which will maintain the best efficiency for snow-making according to dynamic changes in the external environment, saving about 20 percent of water resources. Likewise, we have made timely snow storage plans, including 72 snow storage spots, which are designed to store snow up to 288,000 cubic meters, further reducing the required water for snow-making. We have also paid attention to artificial snow enhancement. Professional teams have been organized to carry out timely artificial snow enhancement operations according to weather conditions and cloud systems, guaranteeing the need for snow in a comprehensive way and through multiple channels. Thank you. 

MASTV:

I have a question about the pandemic. As cases of the Omicron variant of COVID-19 have been identified in many countries, will the latest pandemic situation have any impact on preparations for the Beijing Winter Olympics? Will you upgrade the current pandemic prevention and control measures? What kind of measures will the committee take to ensure safety and prevent the spread of the pandemic? Thank you. 

Zhao Weidong:

I will answer your questions. We are also paying close attention to relevant information about the Omicron variant, and monitoring and assessing its potential impact on the Beijing Winter Olympics. Relevant pandemic prevention and control measures stipulated in the Beijing 2022 Playbooks are based on rigorous and scientific assessments, which proved effective in ensuring safety and pandemic prevention and control during the recent test events. There can be no successful Olympic Games without the safety of epidemic prevention, so we have always made prevention and control work the top priority. During the Beijing Winter Olympics and the 2022 Paralympic Winter Games, we will implement a series of comprehensive prevention and control measures to minimize the risk of imported cases, guarantee the health of all participants as well as residents of the host cities, and ensure the safe and smooth running of the Winter Games as scheduled. 

Pandemic control is key to the success of the Beijing Winter Olympics, and the Beijing 2022 Playbooks is the foundation of epidemic prevention and control. Together with the IOC and the IPC, we have published the first editions of the Playbooks. Not only all overseas participants but also relevant staff at home must strictly follow the guidelines detailed in the Playbooks. So I hope that our media friends pay more attention to the Playbooks, as they are an important foundation for our epidemic prevention and control efforts. Together with the IOC and the IPC, we will release the second version of the Playbooks this month. As for the second version, we continue to make the health and safety of all participants and the Chinese public our top priority, as well as strengthening far-end control, strictly implementing vaccination policies, carrying out strict entry inspections and adhering to the closed-loop system after entry. As I just mentioned, the closed-loop management does not keep people in one place. Rather, it covers all Games-related areas which are connected by special transportation modes. The closed-loop management system not only satisfies the needs of participants but also adequately separates them from the Chinese public. We implement closed-loop management strictly. At the same time, we adhere to normalized prevention and control measures throughout the closed-loop management process. 

We have also incorporated the prevention and control work of the Winter Games into the unified epidemic prevention and control systems of local governments. The epidemic prevention and control work of Games-related areas and related activities has been included in the unified epidemic prevention and control management of local authorities. We will spare no effort to ensure that epidemic prevention and control measures are followed, strengthen efficient coordination, conduct internal and external linkage, and perform respective functions to jointly implement prevention and control measures and ensure the safety of all participants and epidemic prevention and control on the domestic level.

China Daily:

There are less than 100 days before the 2022 Paralympic Winter Games opens, and Paralympians from all over the world are looking forward to demonstrating their spirit of self-transcendence and hard work in Beijing, which, by the end of the Games, will have hosted both the Summer and Winter Olympics. What has the BOCOG done to organize a Paralympic Winter Games as successful as the Winter Olympics? Thank you. 

Yang Jinkui:

Let me answer your question. Thank you for your question. Since preparations began, the central government has attached great importance to the work that goes into the Beijing 2022 Paralympic Winter Games, and asked to integrate the Beijing 2022 Paralympic Winter Games into the overall preparations for the Winter Olympics while synchronizing planning and implementation with a same level of professionalism. Specific measures are as follows: 

First, establish a plan for the Beijing 2022 Paralympic Winter Games. The plan clearly specifies work objectives, key strategic tasks and supporting measures. 

Second, establish a workflow for simultaneous planning and implementation of the Paralympics and Winter Olympics. All departments and posts organize the preparations of the two events simultaneously to ensure that the same systems are in place and the same standards are met, such that they can achieve synchronous preparations for the two events.  

Third, efforts have been made to improve inclusive and accessible environments. We also publicize the notion that the accessible environment should not only serve the disabled community but also those who are able-bodied. We have raised the awareness of the need for accessibility at both the Winter Olympics and Paralympic Games, and established and improved the coordination mechanism for providing accessibility, released a guidebook on accessibility and technical indicators for the Beijing 2022 Winter Olympic and Paralympic Games, and organized regular venue surveys, inspections and guidance. Currently, barrier-free facilities for the Winter Paralympic Games venues and athletes' villages were completed at the same time as the main part of the venues. The barrier-free flow of main customer groups is clear and smooth, the construction of permanent barrier-free facilities meets all standards, goals of sustainable and humanized construction are clear, and the barrier-free environment of the host cities has been optimized and upgraded.  

Fourth, efforts have been made to improve the experience for disabled groups. We have raised and promoted the implementation of key tasks involved in 57 operational areas that address those with special needs. For example, providing accessible vehicles and having contracted hotels offer a portion of accessible rooms or wheelchair-friendly rooms. During the Winter Paralympic Games, there will be news conferences with sign language services and braille publications, barrier-free security channels, special medical and health services, special medicine and devices, maintenance services for wheelchairs and prostheses, and service manuals for our disabled attendees and participants will be provided. We will also strengthen personnel training to provide high-level services for customers with disabilities.  

Fifth, we have strengthened cultural promotion and public awareness. We have compiled the "Knowledge of Winter Paralympic Games Competitive Events," and launched six short videos introducing different events of the Winter Paralympics. We have implemented the "Excellence Program" of the IPC, organized preparation training for the Paralympic Games, and released the emblem, mascot, slogan, torch, medals, sports pictograms, clothing, commemorative coins, songs and other cultural products of the Winter Paralympics. We have carried out extensive training on Paralympic concepts, accessibility awareness and skills that can help persons with disabilities. We have endeavored to raise public awareness about the Olympic and the Paralympic spirit and values. On important occasions including the one-year countdown and the 100-day countdown to the Winter Paralympics, International Day of Persons with Disabilities and National Day for Helping the Disabled, we hosted activities and shared comprehensive and in-depth displays and reports on the various stages of preparation, effectively highlighting the Paralympic spirit and inspiring the whole of society to pay attention to, and support the Winter Paralympics. 

Through these efforts, we have streamlined the planning and design, facility construction, venue operation, competition organization, service guarantee, cultural promotion, market development, publicity, talent cultivation, heritage arrangements and other aspects of the preparatory work. This has provided fertile conditions for realizing the goal of " Two Games, Equal Splendor." Thank you.  

Reuters:

Could you please talk more about the medical service facilities and staff numbers for the Beijing Winter Olympics. For example, are there any operating rooms in the closed-loop that can handle accidental injuries? Are there any facilities for athletes to exercise if they are quarantined due to the pandemic? Thank you. 

Zhao Weidong:  

I'll answer your question. In the closed-loop, there are corresponding hospitals to deal with COVID-19 cases and accidental injuries. These hospitals are under strict pandemic prevention management and contain dedicated areas for Olympics-related patients, who will be completely separated from other patients. In July of this year, the BOCOG, together with the Beijing Municipal Health Commission and Hebei Provincial Health Commission, assessed the medical and health preparations of the designated hospitals for the Beijing Winter Olympics. This August, the health commissions of Beijing and Hebei adjusted the tasks and number of beds, while also assembling a team of experts in the infection-control departments to modify the routes for patient reception and treatment in the designated hospitals. To that end, full preparations have been made for medical services and epidemic prevention in the closed-loop. Thank you. 

Shangyou News:

A large number of people have been working at the venues to make sure the Games run smoothly, following a short window of preparation time, which poses challenges to their professionalism and ability to run the Games. How has the BOCOG conducted pre-Games training? Thank you.  

Yan Cheng:

Thank you. I'll answer this question. The BOCOG recognizes the importance of adequate training. Upon its establishment, the BOCOG made a series of top-level designs regarding the training work and provided training while building the organizer teams. We have established a tiered system of general training, specialized training, and training on venues and specific posts, with international training at the core. We have coordinated 568 training programs for a total of 57,000 person times, covering people including salaried employees of the Organizing Committee, staff from relevant government departments who are responsible for executing services, as well as volunteers from universities and colleges, personnel from various social sectors, contractors and venue owners.

Since the beginning of this year, we have established comprehensive training for general venue staff and those working in specific posts, which is based on the various stages of hosting the Games, and focused on improving the organizers' professionalism and abilities to run the Games. We have made efforts in the following main aspects:  

First, we conducted extensive international training. Relying on the "Beijing 2022 Learning Strategy" jointly implemented by the BOCOG and the IOC, as well as the "Excellence Program" co-conducted by the BOCOG and the IPC, we have launched targeted learning and training programs to improve the organizers' awareness of the Games' rules and their capabilities of running the Games. For example, since October, we have customized 10 courses for the director-level leadership of the competition venues, and another eight courses for non-competition venues, covering a total of 367 participants. The customized courses were co-designed with the IOC and the IPC, to improve the abilities and competence of participating directors. Moreover, from November to December, we offered 29 preparedness courses for the Winter Olympics and 41 similar courses for the Winter Paralympics to 3,883 participants. These examples demonstrate our firm grasp of the characteristics that underpin international training to meet the needs of hosting such a global winter multi-sport event.  

Second, we have proactively trained staff at venues and specific posts, which is doubtlessly an integral feature and requirement of the pre-Games stage. Following the guidelines and implementation arrangements of such training, the BOCOG has coordinated and launched 91 training projects in fields such as competition organization, venue operation, infrastructure and personnel management. To date, we have completed 65 projects, covering more than 4,500 people in charge of key operations of the venues. In line with training organized by the BOCOG, teams across multiple venues have carried out their own extensive training. They have focused on application scenario training and simulation exercises and provided multi-level and multi-domain training for their organizers. A total of 231 training programs have been organized, including the ice-making training at the National Speed Skating Oval (known as the Ice Ribbon), barrier-free training at the Ice Cube, and pandemic prevention training at the National Sleigh and Luge Center. These efforts have effectively closed any outstanding loopholes and enabled organizers to master the knowledge and skills, through hands-on experience, necessary to execute their duties in a short period of time.  

Third, we have continued to strengthen specialized training across the board. Since the second half of this year, we have offered 117 specialized training programs in areas such as power supply, timing and scoring, and medical services. We have advanced specialized training for different kinds of personnel in various industries, including domestic technical officials, ice makers, snowcat drivers, and ski lift ropeway operators. Our basic principle is to offer targeted and specialized training that reinforces any area of weakness. All kinds of professional personnel and workers have had the chance to hone their skills and grow into their roles through training and practice. The test events also examined the training effects on various types of workers.  

At the same time, business training for venue directors, language training for venue staff, and other general training projects of various kinds are also underway in a coordinated manner. All our organizers are making every effort to fully ready themselves for the Winter Olympics. Thank you.

Xing Huina:  

Due to time constraints, today's briefing is hereby concluded. Thank you to all our speakers and friends from the media. Goodbye.

Translated and edited by Wang Qian, Wang Yiming, Li Huiru, Zhang Rui, Liu Jianing, Liu Qiang, Li Xiao, Wang Yanfang, Xiang Bin, Zhou Jing, Qin Qi, Yuan Fang, Yang Xi, Liu Sitong, Xu Xiaoxuan, Zhang Junmian, David Ball, Jay Birbeck, Tom Arnstein and Drew Pittock. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Wu Jianghao, assistant foreign minister

Wu Peng, director-general of the Department of African Affairs of the Ministry of Foreign Affairs

Chairperson:

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

Date:

Nov. 26, 2021

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference being held by the State Council Information Office (SCIO). Today, the SCIO issued a new white paper titled "China and Africa in the New Era: A Partnership of Equals." We are holding this press conference to introduce and interpret the white paper.

Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and Xi Jinping Thought on Diplomacy, the white paper documents the progress in China-Africa cooperation achieved since the 18th National Congress of the Communist Party of China (CPC), presents China's policy position on relations with African countries in the new era, and looks forward to the bright prospects for cooperation between the two sides and a China-Africa community of shared future in the new era. At around 21,000 Chinese characters, the white paper consists of foreword, main body and conclusion. The main text is divided into four parts: Building an Even Stronger China-Africa Community of Shared Future, All-Round China-Africa Cooperation in the New Era, Strengthening Mutual Support, and Breaking New Ground in China-Africa Relations.

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

In order to help you gain a better understanding of the white paper, we have invited Mr. Wu Jianghao, assistant foreign minister, and Mr. Wu Peng, director-general of the Department of African Affairs of the Ministry of Foreign Affairs to attend today's press conference. They will introduce relevant information and answer your questions. Now, I will give the floor to Mr. Wu Jianghao.

Wu Jianghao:

Friends from the media, ladies and gentlemen, good morning. Thank you, Ms. Shou. I am very glad to introduce to you the newly released white paper "China and Africa in the New Era: A Partnership of Equals." This is the first white paper issued by the Chinese government on China-Africa cooperation, and the first of its kind released since the 18th CPC National Congress on China's cooperation with a specific region. I would like to take this opportunity to sincerely thank you, friends from the media, for your long-term care and support for China's diplomacy and in particular China-Africa relations. China is the world's largest developing country, and Africa is the continent with the largest number of developing countries. Shared past experiences and similar development course and targets have brought China and Africa closer together. China and Africa's traditional friendship has gained strong public support, and occupies a special historical position in China's overall diplomatic landscape.

Developing solidarity and cooperation with African countries has been a cornerstone of China's foreign policy, as well as a firm and longstanding strategy. China has firmly supported African countries in realizing their national independence and liberation, following development paths that fit their national conditions, and has made its due contribution to Africa's economic and social development, improvement of people's wellbeing, and its regional integration. African countries have provided firm support in the international arena for China's endeavors to safeguard its sovereignty, security and development interests. The two sides have enjoyed win-win cooperation and common development through pragmatic cooperation. China and Africa have always been a community of shared future.

Since the 18th CPC National Congress, President Xi Jinping has attached great importance to China-Africa relations, and personally drawn up a blueprint for China-Africa cooperation. At the Johannesburg Summit in 2015 and the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) in 2018, President Xi Jinping and African leaders unanimously agreed to upgrade China-Africa relations to a comprehensive strategic and cooperative partnership, and build a China-Africa community of shared future characterized by joint responsibility, win-win cooperation, happiness for all, cultural prosperity, common security, and harmony between humanity and nature. This has led China-Africa relations into a new era, pushed China-Africa cooperation to new and unprecedented heights, and set an example for building a global community of shared future. China and Africa have supported each other in confronting the grave challenges posed by COVID-19. The two sides jointly hosted the Extraordinary China-Africa Summit on Solidarity against COVID-19, writing a new chapter in China-Africa solidarity and friendship in times of crisis.

The white paper offers a comprehensive and systematic summary of new guiding ideas, practices and outcomes of Xi Jinping Thought on Diplomacy regarding China-Africa relations, and elaborates on the principles of sincerity, real results, amity and good faith, the principles of pursuing the greater good and shared interests, and the six-sphere integrated plan of building a China-Africa community of shared future proposed by President Xi Jinping. With a large amount of data and facts, the white paper showcases an omni-dimensional and wide-ranging framework of China-Africa cooperation, and the journey of the Chinese and African people working together and providing mutual assistance in the new era.

In two days, the Eighth Ministerial Conference of the FOCAC will open in Dakar, the capital of Senegal. President Xi Jinping will attend the opening ceremony via video link and deliver a keynote speech. In this context, we have released the white paper in order to explain China's policy toward Africa, showcase practices and outcomes of China-Africa cooperation in the new era, greet the Dakar conference, help the international community deepen its understanding of China-Africa cooperation, and offer China's experience and wisdom for international cooperation with Africa and global development cooperation.

The sixth plenary session of the 19th CPC Central Committee was successfully convened. China is implementing the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and the Long-Range Objectives Through the Year 2035, and marching toward the second centenary goal of building a modern socialist country. Africa is currently trying to overcome the impact of the pandemic and advance its economic recovery and regional integration. The two sides will enjoy broader cooperation space. In the face of new opportunities and challenges, China will work with African countries to steadfastly reinforce their traditional friendship, promote mutually beneficial cooperation, and safeguard common interests. The two sides will step up efforts to build an even stronger China-Africa community of shared future, and make a greater contribution to a global community of shared future.

Thank you. Next, my colleague and I are willing to answer your questions.

Shou Xiaoli:

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

CCTV:

As you said just now, the white paper is the first of its kind issued by the Chinese government since the 18th CPC National Congress on China's cooperation with a specific region. Why was China-Africa cooperation chosen as the subject? Thank you.

Wu Jianghao:

I think many of you may have the same question. We have chosen to issue a white paper on China-Africa cooperation because China-Africa relations are very special. This is mainly reflected in the following three aspects.

First, African countries and China are all developing countries. China and Africa enjoy a long-lasting friendship, and our relations grow closer with time. The Chinese and African peoples have forged a strong friendship as we struggled for national independence and liberation and carried out mutual support and wholehearted cooperation in seeking national rejuvenation and development. The two sides have been firmly supporting each other on issues involving each other's core interests and major concerns. Chairman Mao once said, "It's our African brothers who got the People's Republic of China back into the United Nations." No matter how the international situation changes in the future, I believe we will remain true to the original aspiration of China-Africa win-win cooperation and common development. China and Africa will always be the most reliable friends and sincere partners.

Second, China-Africa cooperation has become a distinct symbol in South-South cooperation and in international cooperation with Africa. Entering the new century, especially since the founding of FOCAC in 2000, practical cooperation between China and African countries has developed rapidly. China helped African countries build more than 80 large-scale power facilities and funded over 130 medical facilities, 45 sports venues, and over 170 schools. It also trained more than 160,000 personnel for Africa and built a series of flagship projects, including the AU Conference Center. Chinese companies have utilized various funds to help African countries build and upgrade more than 10,000 km of railways, nearly 100,000 km of highways, nearly 1,000 bridges and 100 ports. They have also helped build an installed power-generating capacity of 120 million kW, a communications backbone network of 150,000 km, and a network service covering nearly 700 million user terminals. The two sides have also seen expanded cooperation in emerging industries such as the digital economy, aerospace, clean energy, and new infrastructure. The fruitful results of China-Africa cooperation can be seen across the continent. It has improved the conditions for economic and social development in Africa and enhanced Africa's development capabilities, which brought tangible benefits to people in both China and Africa and created more favorable conditions for others in the international community to conduct cooperation with Africa.

Third, China and Africa set an exemplary model for building a global community of shared future. The overall objective in pursuing China's major country diplomacy is to promote the building of a new type of international relations and a global community of shared future. The future of our people is closely linked, and we share very similar views on major issues such as promoting the change of the international landscape and making international relations more democratic. The concept of a global community of shared future is highly compatible with Africa's goal of building a stronger African continent through unity, prosperity and rejuvenation, which is well received and supported by African countries. When China-Africa cooperation thrives, South-South cooperation will flourish. When China and Africa are fully developed, the world will be a better place. Cooperation in the new era will lay more solid foundations for building an even stronger China-Africa community of shared future and promote China-Africa relations to be at the forefront of building a global community of shared future. Thank you.

CNR:

We just noticed that you mentioned the upcoming ministerial conference of the FOCAC that is scheduled to take place in Senegal. Please detail this conference. In addition, we also want to know what new measures China will propose for cooperation with Africa at this conference? Thank you.

Wu Peng:

Thank you, and let me answer your questions. The Eighth Ministerial Conference of the FOCAC will be held on Nov. 29 and 30 in Dakar, the capital of Senegal, the African co-chair of FOCAC. On Nov. 28, there will be a senior official meeting to prepare for this forum, and I will also go to Dakar to attend this meeting.

You know the FOCAC is held every three years and serves as a major event between China and Africa. This forum is another grand meeting of our friendly China-Africa family since the 2018 FOCAC Beijing Summit. It is also the largest in-person diplomatic event jointly organized by China and overseas countries since the emergence of COVID-19. As we mentioned earlier, President Xi Jinping will attend the opening ceremony of the Eighth Ministerial Conference of the FOCAC and deliver a keynote speech through video link in Beijing. The Chinese government will also send a high-level delegation to Dakar to attend the conference. Amid the COVID-19 pandemic, China and Africa will still hold the conference as scheduled, reflecting the mutual trust and support of the two sides, as well as our determination and responsibility to jointly address the questions of the times and respond to changes in the world.

With the theme of "Deepen China-Africa Partnership and Promote Sustainable Development to Build a China-Africa Community of Shared Future in the New Era," the conference will review and assess the follow-up implementation of the outcomes of the 2018 FOCAC Beijing Summit as well as the joint China-Africa response to COVID-19, and chart the course for China-Africa relations for the next three years and more to come.

At this conference, China will elaborate on important policies on building a China-Africa community of shared future in the new era and announce new major measures for cooperation with Africa in the next three years. As I just said, President Xi Jinping will give a keynote speech. The main new measures of China's cooperation with Africa will be announced by President Xi Jinping. I won't say too much here, but I would like to share some information with you. For example, in the health sector, President Xi will announce major measures to help Africa fight against COVID-19. China will also introduce some new measures in the field of trade and investment at the request of the African side. Indeed, the FOCAC needs to improve its quality and efficiency and promote the transformation and upgrading in the next stage. Therefore, we will also jointly expand cooperation in areas of mutual interest, such as digital innovation and green development. Climate change is now a major challenge for all mankind, and China and Africa will do their part. The two sides will issue a special declaration on addressing climate change.

I would like to thank all journalists present here for your attention to this grand China-Africa cooperation event and welcome your reports. 

Thank you.

Southern Metropolis Daily:

The Belt and Road Initiative (BRI) is a major global cooperation initiative proposed by China. What is the attitude of Africa towards the BRI? Has China-Africa cooperation under the BRI achieved results? Thanks.

Wu Peng:

Thank you for your questions. Indeed, the BRI is a public product offered by China to the world, and it is very popular in Africa. Africa is a natural and historical extension of the BRI. Around 600 years ago, the Ming Dynasty admiral Zheng He's fleet once reached the east coast of Africa, near Malindi Island in Kenya. It is believed that the wrecked ship in one village there must be one of Zheng He's fleets. The Palace Museum also sent archaeologists there for excavations and found many examples of Ming Dynasty porcelain left by Zheng He's fleet. These are all archaeological evidence of the fleet's presence there.

The Maritime Silk Road has opened the road of business for China and Africa. The Belt and Road Initiative has earned active support and participation from African countries since its inception. To date, 52 of 53 African countries that have established diplomatic ties with China, as well as the African Union, have signed agreements on cooperation with China to promote the Belt and Road Initiative. Africa is now one of the most important cooperation parties under the initiative. That is to say, almost all African countries have joined in cooperation under the initiative. 

In recent years, connectivity between China and Africa under the Belt and Road Initiative has also expanded at a faster pace. A number of transport infrastructure projects have opened to traffic, including the Addis Ababa-Djibouti Railway, the famous Mombasa-Nairobi Standard Gauge Railway in Kenya, and the No. 1 National Highway of the Republic of the Congo. Projects such as the Doraleh Multi-Purpose Port in Djibouti and the Lome Container Terminal in Togo have been successful in increasing entrepot trade. Innumerable major projects under the initiative play an important role in boosting regional connectivity and integration. 

Currently, both China and Africa have entered a new development stage. China is promoting a new development paradigm with the domestic economy and international engagement providing mutual reinforcement, with the former as the mainstay. China's development will create more opportunities for Africa's development. With the official launch of the African Continental Free Trade Area on Jan. 1, 2021, Africa's economic integration is accelerating, providing more room for growth in China-Africa cooperation. The two sides will focus on boosting quality development and further align the goals of the Belt and Road Initiative with those of the AU's Agenda 2063, the UN 2030 Agenda for Sustainable Development. China and Africa will deepen practical cooperation in all fields and promote the sustainable and high-standard development of the Belt and Road that is beneficial to the people. Thank you. 

Kyodo News: 

My question is about the cooperation under the Belt and Road Initiative. There is a saying that China has caused debt traps for Africa. How much debt does Africa owe to China? How to solve the debt issue? Another question is more specific. Why is this FOCAC a ministerial conference instead of a summit? Will there be a summit in 2021? Thank you. 

Wu Peng:

I will answer the questions from Kyodo News. First, I will explain why it is a ministerial conference. We all know that the FOCAC was established in 2000, which was designed to be a ministerial conference when the mechanism started. In 2006, 2015, and 2018, we held three summits and ministerial conferences, respectively. Therefore, the forum mechanism is a ministerial conference. As Mr. Wu Jianghao introduced just now, Chinese President Xi Jinping will participate in the opening ceremony of this ministerial conference in Beijing via video link, which demonstrates the importance that the Chinese government has attached to China-Africa cooperation. This ministerial conference is the activity of FOCAC, which is held every three years. 

As for the question about debt that you mentioned, first of all, the so-called debt trap is already a cliché in my view, which has been disproved by a wide range of research conducted by governments, scholars, and institutes across the globe. The basic logic of the debt trap is that China provided unaffordable loans to Africa and would confiscate or take physical assets of African countries when they were unable to pay back the debts. I suggest that the journalist from Kyodo News research if there has been any project that was confiscated by China because African countries can't repay the debts. You won't find a single one. 

Not a single developing country has fallen into a so-called trap due to owing debts to China. The fact and statistics also prove that this saying is totally untenable. I can introduce to you China's attitude towards Africa's debt issue and the reasons. 

In recent years, Africa has actively promoted social development. However, capital deficiency remained a major bottleneck in reviving Africa. As a sincere and friendly partner of Africa, China has attached much importance to Africa's capital needs and the sustainability of their debts. China sticks to the intensive development philosophy and fully respects the will of the African people. Based on the realities in Africa, China has conducted practical and effective investment and financing cooperation with Africa, which is widely welcomed by African countries. 

Indeed, due to the outbreak of the COVID-19 pandemic, some African countries have been confronted with temporary difficulties. China supports reducing the debt burden on African countries and is actively implementing the G20 Debt Service Suspension Initiative (DSSI). Among G20 members, China ranks first in terms of the amount of deferred debt, having signed debt service suspension agreements or reached consensus with 19 African countries. China supports extending the DSSI until the end of 2021, and is working with relevant members to implement the common framework for debt treatments beyond DSSI. The creditor committees of Chad and Ethiopia have already been set up under the common framework, with China and France serving as co-chairs of the Ethiopian Creditor Committee. 

China works with relevant parties in supporting the debt reduction and suspension for countries facing an extremely serious epidemic and under severe pressure case by case. China has announced an exemption from debt incurred in the form of interest-free Chinese government loans due to mature by the end of 2018. It will apply to Africa's least developed countries, heavily indebted and poor countries, landlocked developing countries, and small island developing countries that have diplomatic relations with China. During the COVID-19 pandemic, China canceled the outstanding debts of 15 African countries in the form of interest-free loans that matured at the end of 2020. I think that China remains committed to making its contribution. 

Africa has achieved remarkable development results over recent years. It is of vital importance to restore and continue the development momentum in the face of the pandemic. China stands ready to work with the international community, stick to the principle of "joint action and fair burden sharing," and implement the Debt Service Suspension Initiative and the common framework for debt treatments beyond DSSI. China supports that those rich countries lend a proportion of their allocation of International Monetary Fund Special Drawing Rights to African countries in need. We also hope that multilateral financial institutions and commercial creditors will take active and concrete actions in expanding investment in Africa and support Africa to achieve economic independence and sustainable development, and eradicate the root causes of debt issues. 

It must rely on development to solve Africa's debt issues. African countries are confident in their development prospects. Therefore, we believe that both China and Africa are resolute in solving temporary difficulties that face Africa. 

Thank you. 

Wu Jianghao:

The "debt trap" rhetoric, which has been frequently hyped in recent years, is actually untenable. Developing countries have their needs for development, and funds are crucial to ensure their development. It is not reasonable to consider the money offered by the Western countries and Japan to developing countries as "official development assistance (ODA)," while those offered by China create a "debt trap." This is untenable. The attitude of recipient countries should not be neglected as well. Has any Western media outlet found a developing country that has accused China of making them fall into a "debt trap"? I don't think so. The "debt trap" rhetoric is fabricated by Western governments and media outlets.

Japan used the loans from the World Bank to implement its Shinkansen project many years ago, and its debts were not paid off until a few years ago. Is it reasonable to argue that the World Bank created a debt trap for Japan? With fairness and justice, it would be easy for us to tell how untenable this argument is. Thank you.

Red Star News:

The COVID-19 pandemic is still ravaging the world and hampering international cooperation. What measures have China and African countries adopted to deal with challenges brought about by the pandemic? Thank you.  

Wu Peng:

Thank you for your question. Indeed, the COVID-19 pandemic is still raging, and how to address the challenge is something that concerns all countries. Confronted by COVID-19, China and Africa have withstood a severe challenge, helping each other and fighting side by side to defeat the pandemic through solidarity and cooperation.

In June 2020, the Extraordinary China-Africa Summit on Solidarity against COVID-19 was held via video link, making China the first country in the world to convene an anti-pandemic summit with Africa. At the summit, President Xi Jinping called for the accelerated implementation of the outcomes of the FOCAC Beijing Summit, with greater priority to be given to cooperation in the areas of public health, economic reopening, and people's livelihoods. He also announced a series of measures regarding anti-pandemic assistance to Africa, debt relief, debt service suspension, and economic reopening, which have been highly praised and widely welcomed in Africa. Since the summit, the two sides have closely worked together on pandemic prevention and control, resuming economic activity, and progressing China-Africa anti-pandemic cooperation.

Nearly 100,000 Chinese technicians and service workers stood fast at their posts, and a lot of China-invested companies went to Africa to facilitate the reopening of the plants and the projects there, which, therefore, ensured more than 1,100 China-Africa cooperation projects operating despite the pandemic. Thanks to the joint efforts of China and African countries, many major projects have been completed and made important progress, making a great contribution to the local fight against COVID-19 and ensuring people's livelihood improvement and economic recovery. Despite the pandemic, China-Africa cooperation has achieved remarkable results and has been resilient.

After COVID-19 struck Africa, China immediately offered humanitarian assistance, the largest such program in scale and the most difficult to implement since the founding of the PRC. It is challenging to ensure the delivery of the anti-pandemic materials to Africa due to the long distance and inconvenient transportation. Despite this, we have overcome the difficulties. 

In coordination with local governments, enterprises, and social organizations, the Central Government of China has provided emergency anti-pandemic supplies to 53 African countries and the AU based on their respective needs, with these emergency supplies reaching almost all areas across the continent. China has also actively shared its anti-epidemic experience with African countries and dispatched anti-epidemic medical expert groups or short-term anti-epidemic medical teams to 17 African countries to fight the epidemic alongside local people. At the beginning of this year, it pushed for the earlier start of the construction of the headquarters of the Africa Center for Disease Control and Prevention (Africa CDC), a project assisted by China. The project is undergoing rapid progress, and we are confident that it will be completed in about two years. To help African countries cope with the pandemic and overcome temporary difficulties, China has actively implemented the G20's Debt Service Suspension Initiative (DSSI), which I have provided some information about. 

Moreover, China actively honors its commitment to making vaccines a global public good and has taken the lead to supply vaccines to Africa. So far, China has provided nearly 200 million doses of vaccine to Africa. Chinese enterprises are actively engaging in joint vaccine production in Africa with local firms, which is something Africa really needs.

The pandemic is still raging, posing challenges to socio-economic development in Africa and disrupting the people-to-people exchange between China and Africa. As such, cooperation on public health will be one of the major focuses at the Ministerial Conference of FOCAC in Dakar. As I mentioned earlier, China is ready to continue its support for African countries in their fight against the pandemic in accordance with the pandemic situation and the willingness of relevant countries. China and Africa are confident that we will beat the virus, and promote China-Africa cooperation to ensure high-quality development. Thank you. 

China News Service:

The international community is paying more attention to Africa's development. Many countries outside the region are actively engaging in cooperation with African countries. What do you think of the competition and cooperation between China and other countries in Africa? Thank you.

Wu Jianghao:

China and Africa have a long history of cooperation, such as the Tanzania-Zambia Railway (TAZARA). China-Africa cooperation has witnessed rapid progress over the past decade, and areas of cooperation have also been expanded. With China's increased investment, remarkable outcomes have been made. In this regard, such cooperation is driving more countries to invest in Africa. I think it is a good thing for Africa to get more investment. As a friend of Africa, we are also very delighted to see that. It is the common responsibility of the international community to support Africa's development. China has an open and welcoming attitude toward cooperation that the international community and countries around the world would like to develop with African countries. We believe that Africa is a broad stage for international cooperation rather than an arena for competition among major countries. Moreover, we believe that cooperation with African countries should be carried out on the basis of respecting their sovereignty and true needs, listening to their voice, and give full play to our respective strengths so as to bring tangible benefits to the African people.

President Xi Jinping proposed the Global Development Initiative at the general debate of the 76th session of the United Nations General Assembly this September in an effort to speed up the implementation of the 2030 Agenda for Sustainable Development. The initiative has received broad welcome and support from Africa countries as Africa will be one of the main beneficiaries of the initiative. This May, China and African countries jointly launched the Initiative on Partnership for Africa's Development, aiming to build consensus and add new impetuses to an early victory against COVID-19 and the realization of sustainable development in Africa. China will continue to enhance cooperation with African countries based on the correct concept of upholding justice and joint interests, and wishes to carry out dialogues, exchanges, and cooperation with various parties in this regard.

When we carry forward the joint building of the Belt and Road, an important aspect is triangular cooperation, which, of course, also applies in Africa. At the same time, we welcome more countries and international organizations to join in the Global Development Initiative and the Initiative on Partnership for Africa's Development to form international synergy in supporting African development and helping African countries in their pursuit of stronger, greener, and healthier development. Thank you.

Thecover.cn:

Would you please introduce the China-Africa infrastructure cooperation? Has the COVID-19 pandemic affected cooperation? Are you considering new models for future cooperation? Thanks.  

Wu Peng:

I will take your questions, thank you. Indeed, infrastructure is a traditional and much-watched area in China-Africa economic and trade cooperation, which indicates infrastructure cooperation has made great gains. The projects implemented by China's enterprises have effectively improved infrastructure connectivity in Africa and boosted local social and economic development. Just now, we listed relative data and projects, showing what we have achieved there. For example, since the FOCAC was set up, China has used various funds to help African countries build more than 10,000 km of railway and 100,000 km of highway. We mentioned this just now. 

It is true that COVID-19 has disrupted China-Africa personnel exchanges and cooperation. However, we didn't press the "pause button" and managed to continue the implementation of China-Africa projects amid the pandemic, and a batch of major projects have made great progress. For example, the passenger flows and cargo volumes of the Chinese-built Mombasa-Nairobi Standard Gauge Railway (SGR) in Kenya and the Ethiopia-Djibouti railway have increased sharply amid the pandemic, as the flow of personnel and trucks was inconveniently limited due to cross-border COVID-19 measures. This proves that infrastructure plays the role of the artery amid the COVID-19 pandemic and makes a great contribution to the economic development and pandemic prevention and control in the two countries and in Africa. China's government encourages enterprises to enhance infrastructure cooperation with African countries, and to seize new opportunities to extend industrial chains and cultivate new models based on the consolidation of traditional advantages. For instance, given the strained financial situation in some African countries, many Chinese enterprises launched infrastructure projects under PPP (public-private partnership) and BOT (Build-Operate-Transfer) models, such as Nigeria's Lekki Deep Sea Port and Kenya's airport expressway. Thus, China encourages and supports its enterprises to transform and upgrade cooperation via new models. 

At the upcoming FOCAC conference, we will roll out new measures for cooperation in our traditional area of infrastructure to further promote mutually beneficial and win-win China-Africa cooperation. Thank you.

China Youth Daily:

Nowadays, the world is increasingly polarized, and separatism is on the rise. The white paper was issued against such a backdrop. My question is, what is the significance of holding the FOCAC conference and highlighting China-Africa cooperation against such a backdrop? 

Wu Peng:

You posed a very big question. I think what you are referring to is what is the significance of China-Africa cooperation and FOCAC in terms of international relations. I will follow what Mr. Wu Jianghao has said just now. We always hold that demands from Africa should be the core consideration of China-Africa cooperation or other international cooperation with African countries. As Mr. Wu Jianghao said, Africa should be a stage for international cooperation, not an arena for competition among major countries. As the head of the department of African affairs of China's Ministry of Foreign Affairs, I am occupied with considering the needs of African countries and China-Africa cooperative projects every day. I barely have time to think about how other countries see China-Africa cooperation. You asked about the significance of FOCAC. Africa has encountered serious but temporary difficulties. The pandemic caused the most serious economic recession in half a century in Africa in 2020, but in 2021 the economy has recovered with good momentum. The impact of COVID-19 will not disappear in the short term, there is still a lot of work to be done to achieve sustainable development, but African countries and China have the confidence to overcome these difficulties. 

What's the significance of China-Africa cooperation and the FOCAC? I think that, for one thing, China and Africa have entered new development stages, and the advantages of their economic complementarity have become more obvious. China is accelerating the fostering of a new development paradigm and is dedicated to advancing opening-up to a higher level. The newly-established African Continental Free Trade Area also taps into the vast market potential of the continent's 1.3 billion people and its $3.4 trillion economy. We must be aware of the situation and hold a long-term and progressive point of view when cooperating with Africa. Africa has made significant progress seeking economic strength through unity and promoting economic integration, and this has achieved substantial growth momentum into its economy. As a result, China and Africa's development has become even more complementary, and the mutually beneficial cooperation between the two sides has even brighter prospects.

In addition, the latest round of the worldwide sci-tech revolution and industrial transformation has created opportunities for us to deepen China-Africa cooperation. Currently, China-Africa cooperation is seeing sound momentum and is transitioning from a government-led approach to a market-oriented model, from commodity trade to industrial capacity cooperation, and from project contracting to investment operations. Moreover, the pandemic has created new opportunities for collaboration in the internet economy, 5G, healthcare, the supply of industrial chains and other areas both within Africa and between the continent and China, bringing about massive potential for China-Africa cooperation.

China's resolve to enhance cooperation with Africa will not change due to the pandemic or temporary economic recession. The direction of our partnership will remain unchanged, and the actions we take will not be weakened. China will continue upholding the principles of sincerity, real results, amity and good faith, as well as the principles of pursuing the greater good and shared interests, so as to work with our African friends to properly tackle challenges facing China-Africa cooperation under the new circumstances. Looking beyond the pandemic, China will keep its relations with Africa abreast of the times and forge ahead to inject new vitality into the cooperation between the two sides and bring tangible benefits to people in China and Africa.

Thank you.

Hong Kong Bauhinia Magazine:

What achievements have been made in people-to-people exchanges between China and Africa in recent years? How can we make further progress in this aspect? Thank you.

Wu Peng:

Thank you for your questions. People-to-people exchanges are among the essential parts of China-Africa cooperation, because it is the public support for exchanging between the two sides. Therefore, China has always attached great importance to interacting with people in Africa, speaking with them, listening to them, responding to their concerns and implementing China-Africa cooperation in a way that helps fulfill their dreams.

As an old Chinese saying goes, "State-to-state relations thrive when there is a friendship between the peoples." "Cultural prosperity" is one of the critical aspects of building a China-Africa community of shared future. The two sides have seen diverse people-to-people exchange activities in recent years. We have held many "Year of an African Country" events, "Year of Culture" programs and "Chinese and Africa Cultures in Focus" projects. Other programs include the China-Africa Youth Festival, think tank forums, media cooperation forums, and joint exchanges projects, to name a few. There are also Confucius Institutes and cultural centers. The two sides have established 61 Confucius Institutes and 48 Confucius Classrooms in Africa, and the numbers keep growing. There are also 160 pairings of sister provinces or cities between China and African countries. It's fair to say that the two sides have an increasingly profound understanding of each other.

Given the upcoming meeting of the FOCAC, we have launched an online campaign collecting video and photographic works from people in Africa. I am very impressed by some of the pieces collected. These works reflect ordinary people's point of view on China-Africa cooperation and tell stories about how these people benefit from the cooperation. I find them very touching. I recommend our friends from the media to take a look at these works, which, together with news information, are available on the Ministry of Foreign Affairs website. You may find some exciting news topics from them.

Under the current circumstance, people-to-people exchanges, especially exchanges with people from all walks of life in Africa, is still an essential aspect of our work. We need to expand the public support of the development of China and Africa and strengthen the bond between the people of the two sides. Thank you.

Shou Xiaoli:

Next will be the last question due to time constraints.

Jiemian News:

In recent years, Chinese and African companies have jointly built many cross-border e-commerce platforms, via which African products like coffee can enter ordinary Chinese families. Will the digital economy become a new highlight of China-Africa cooperation? What is your view on the prospects for this area of cooperation? Thank you.

Wu Peng:

You must have closely followed the situation of China-Africa cooperation. The questions are well to the point. Indeed, the digital economy has become a new highlight of China-Africa cooperation. In recent years, China has made great efforts in promoting China-Africa cooperation in the digital economy. By doing so, China is helping African countries eliminate the digital divide and seize the opportunity of an information revolution.

First of all, infrastructure is essential in the development of the digital economy and e-commerce. Here I'm talking about the "new types of infrastructure." China has made significant contributions to building digital infrastructure in Africa. Our companies have utilized various funds to help African countries with fiber-optic cable projects and wireless telecommunications projects. Instead of just sitting in the office, our engineers and technicians have kept working in the wild, including valleys, fields, and mountains. Kilometer by kilometer, they have worked together with their African peers to build plenty of digital infrastructure projects on the continent.

A possible stereotype about Africa is that the continent is less advanced in developing the digital economy. Well, this is true. However, with a large young population and relatively high internet and mobile phone coverage, Africa has enormous potential in this area. As for the need of African countries for infrastructure such as the servers providing cloud services, China has developed many digital centers and intelligent cities in response to their requests.

Another concern of African countries is how to advance China-Africa cooperation via the digital economy and e-commerce platforms. This September, we launched the African Products Online Promoting Season. The three-month campaign has achieved satisfying results. Many ambassadors of African countries to China promoted their local products on e-commerce platforms, such as oranges from South Africa, coffee from Ethiopia and Tanzania, and chili peppers from Rwanda. Such promotional activities have stimulated a surge in consumption, though the volume may not be as massive as during the Singles' Day shopping spree, yet good enough considering the economic sizes of those countries. In my view, significant progress has already been made.

E-commerce platforms have also helped featured products from Africa to access the Chinese market gradually. I once saw Tanzanian coffee served at a Starbucks in Beijing. For me, it was a delightful surprise. What's more, Hunan, a Chinese province where local dishes are quite spicy and full of chili peppers, has signed an agreement with Rwanda in Africa on trade in dried chili peppers. Rwanda is a small country by area, and its chili peppers have a unique flavor. In addition to planting chili peppers on its land, Rwanda has also rented more fields in neighboring countries to supply Hunan with enough chili peppers. The need for chili peppers in a single province in China is beyond the capacity of Rwanda. All the above are examples of new business opportunities triggered by new types of the digital economy for African countries. Of course, the digital economy covers many other areas, including digital currency and online payments. Chinese companies have also contributed a lot in these areas in Africa. As far as I know, 60% to 70% of the mobile payment services of one African country are provided by a platform jointly launched by African and Chinese companies. More and more new business forms, including mobile payment systems and digital currency services, have developed in Africa, making here a continent full of hope and potential to give play to its late starter's advantage and achieve leapfrog development in new areas.

Thank you.

Shou Xiaoli:

Thank you, Mr. Wu Jianghao and Mr. Wu Peng. And thank you to all journalists for their participation. Today's press conference is hereby concluded. Goodbye.

Translated and edited by Zhang Liying, Wang Qian, Wang Yiming, Zhang Rui, Liu Jianing, Huang Shan, Gong Yingchun, Ma Yujia, Wang Yanfang, Yuan Fang, Zhu Bochen, Chen Xia, Li Xiao, Li Huiru, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Wang Shouwen, vice minister of commerce and deputy China international trade representative

Yan Dong, director general of the Department of WTO Affairs of the Ministry of Commerce

Chairperson:

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

Date:

Oct. 28, 2021

Xing Huina:

Friends from the media, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). At this press conference, we will brief you on the World Trade Organization's (WTO) eighth trade policy review of China and answer your questions. Today, we are joined by Mr. Wang Shouwen, vice minister of commerce and deputy China international trade representative, as well as Mr. Yan Dong, director general of the Department of WTO Affairs of the Ministry of Commerce.

Next, I'll give the floor to Mr. Wang Shouwen.

Wang Shouwen:

Friends from the media, good morning. The WTO conducted its eighth trade policy review of China via video link on Oct. 20 and 22. At today's press conference, I'd like to brief you on the trade policy review. Welcome, and thank you for attending this press conference.  

The trade policy review is one of the WTO's three main functions, with the other two being the negotiation function and the dispute settlement mechanism. As you know, the dispute settlement mechanism is facing a crisis, and the negotiation function is faced with great difficulty. But it is good to see that the trade policy review function is continuing as normal. China attaches great importance to these three functions. The trade policy review function can ensure the transparency of WTO members' trade policies so that members can point out each other's problems to avoid misunderstandings and possible trade disputes in the future. This has played a very important role in promoting the smooth operation of the multilateral trading system.  

Since its accession to the WTO in 2001, China has attached great importance to the WTO's trade policy review. For every review, we have invested lots of effort, made meticulous preparations and taken every question other members posed to us seriously. This fully demonstrates China's commitment to the multilateral trading system and the importance China attaches to the trade policy review system.  

I myself have participated in four of the WTO's trade policy reviews of China, including this one. Most of the trade policy reviews were held in Geneva, but the review this year was conducted via video link due to the pandemic. The WTO has reviewed China's trade policy many times, from which we have summarized the following characteristics:  

First, the number of reviews China has undergone is relatively large. Since its accession to the WTO, China has gone through nine transitional reviews and eight trade policy reviews, more than any other WTO member. The United States ranks second, having received a total of nine reviews since 2001.  

Second, the number of questions other members posed to China is the most. For almost every review, the number of questions raised by other members reached a new high. This time, for example, we received 2,562 questions from 39 members, about 1.5 times as many as that of the U.S., which received more than 1,700 questions for their last review.

Third, the questions posed to China cover a wide range of areas, including trade in goods, trade in services, intellectual property rights and investment. The Chinese government attaches great importance, and in 2002, we set up an inter-ministerial coordination mechanism on trade policy review. Led by the Ministry of Commerce and involving more than 60 departments, the mechanism carefully analyzes and responds to the questions raised by other members.  

The number of questions raised by WTO members during the first phase (Sept. 29-Oct. 6) of the review reached 2,151. To answer these questions, we organized 62 departments to work overtime during the National Day holiday (Oct. 1-7) to conduct in-depth analysis of the questions and fully understand members' concerns. We responded to the questions by Oct. 19 in strict accordance with the time limit set by the WTO. After Oct. 6, additional questions were posed which we needed to answer within a month of Oct. 22. Responses totaling 400,000 words in Chinese and English have been made to questions of the first phase alone. 

During this review, Wang Wentao, minister of commerce and head of the Chinese delegation, highlighted three aspects in his keynote speech. First, through unremitting efforts and hard work as well as long-term commitment to the reform and opening-up policy, China has secured leapfrog economic growth, which has provided great opportunities for the world and made notable contributions to global economic development. Second, over the past 20 years since its accession to the WTO, China has strictly abided by WTO rules and earnestly delivered its commitments, serving as a firm supporter, active participant and important contributor for the multilateral trading system. Third, China has taken concrete actions to support international cooperation against COVID-19. At this review meeting, China also introduced in detail its development of economic and trade policies, and participation in the WTO's work since its seventh review in July 2018.  

Representatives from 65 WTO members spoke at the meeting of this review and made positive comments about China. First, they recognized that China has actively participated in the work of the WTO, keenly delivered its accession commitments, earnestly engaged in the fisheries subsidies negotiations, played a leading role in the investment facilitation negotiation, and played a constructive role in the e-commerce negotiations. Second, they spoke highly of China's important role in the international cooperation against COVID-19 and appreciated China's support for the WTO's early decision to waive intellectual property rights on COVID-19 vaccines. Third, they thanked China for granting tariff-free treatment of imported products from the least developed countries (LDCs) and helping other developing members and LDCs integrate into the multilateral trading system. Fourth, they fully recognized China for actively lowering tariffs, shortening the negative list for foreign investment, widening market access, actively promoting trade and investment liberalization and facilitation, and providing a broad market for all other WTO members. Fifth, they spoke positively of the great potential of the Belt and Road Initiative (BRI) in promoting trade and economic cooperation among relevant countries and bringing more development opportunities to partners.

As I've mentioned before, the trade policy review provides a very good platform for communication and dialogue. On this platform, member states can raise questions and avoid further misunderstandings through frank exchanges. During this meeting, member states have learned about China's economic and trade policies, such as the Belt and Road Initiative, transparency, intellectual property rights (IPR) protection, government procurement, state-owned enterprises, industries with overcapacity, dual circulation and trade surplus. In response to their concerns, we have given them written answers or delivered speeches during the conference. We have clarified and elaborated on these questions to help them better understand the situation. We also pointed out that, due to the limited time of the review – which only takes place for two to three days – we cannot address every aspect or fully explain all of them during the conference. So we would like to further our communication with other member states within the WTO framework. 

That concludes my briefing about the WTO's eighth trade policy review of China. Together with my colleague, Yan Dong, director general of the Department of WTO Affairs of the Ministry of Commerce, I'd like to take your questions. Thanks. 

Xing Huina:

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

CCTV:

What is China's view on the WTO's eighth trade policy review of China? What was achieved through this review?

Wang Shouwen:

Thank you for the questions. I just provided a brief about the review. In accordance with the existing rules of the WTO, China undergoes a WTO review every three years, with the last one having occurred in 2018. As such, this year marked the eighth trade policy review. In general, the review is routine work, but it has diversified content, meaning it delivers fruitful results and meets our expectations. It also demonstrates that the WTO's trade policy review, as one of the three pillars of the WTO, is still working well. Member states recognize the importance of the review and actively participate in it. Due to the impacts of COVID-19, we gathered online, and 65 representatives delivered their speeches during the conference. A record high of 2,562 questions were raised at the meeting, which was 16% higher than the number of questions raised during the seventh review in 2018. So this is a successful review. 

People raised abundant and diverse questions at the meeting. First, questions about the related agreements of the WTO. For example, regarding the goods trade, many have been concerned about China's implementation of the Trade Facilitation Agreement. In terms of the service trade, they have been curious about whether related regulations of China's Cybersecurity Law are in accordance with WTO's General Agreement on Trade in Services. On the subject of IPR protection, people have been interested to know whether pertinent information can be released when ruling on cases related to IPR protection, or whether they are in accordance with regulations outlined in the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights. Second, WTO member states have raised questions that are beyond the framework of the WTO. These can be seen as their hopes or expectations. For example, they expect that China will further open its market, ease foreign access to the market, shorten the negative lists for foreign investment, and advance the replication and promotion of the achievements of institutional innovation made in pilot free trade zones to the whole country. We fully understand their concerns and expectations. For example, they would like to enter China's market. The pilot free trade zones have been progressing well. However, the current zones only cover a small area. They have been curious about whether the pilot free trade zones will be expanded nationwide so that they can enjoy easier access to the whole market of China. China has become a major trade country of the WTO's more than 120 member states. These member states have many expectations and raised abundant and diverse questions at the meeting.

The results achieved during the eighth policy trade review are as follows:

First, we elaborated on China's policies. Before the review meeting, we prepared a declaration by the Chinese government on China's policies, which is more than 20,000 characters. Today, we also brought the Chinese and English versions of the document to the press conference. You may read about it. In the declaration, we explain the development and changes of China's latest trade policies, through which people may understand China's efforts and determination to push forward its reform and opening-up. At the same time, the secretariat of the WTO also prepared a report on China's trade policies from their perspective. Through these two documents, member states of the WTO can glean a deeper understanding of the changes to China's trade policies over the past three years. 

Second, we explained and clarified responses to the concrete concerns of member states. Some of the member states were a bit confused about the direction of China's policies and had questions about it. For example, they worry about the new development paradigm of "dual circulation" proposed by China. They worry that fostering the new development paradigm means China will slow down its steps of opening-up. We have explained it. President Xi Jinping has, on many occasions, stressed that the "dual circulation" is by no means a closed domestic loop, but a more open system that includes domestic circulation as well as international circulation. Some member states are worried about forced technology transfers in China. In response, we explained that China's revised Administrative License Law and the newly-adopted Foreign Investment Law both clearly stipulate that no administrative department or its staff members shall force any transfer of technology by administrative means.

Third, more than 60 departments that took part in the eighth trade policy review conducted in-depth research on the questions of member states and gained a better understanding of their concerns. It would be helpful for us to further improve our trade policies and practices in the future, to promote trade and investment relationships with other member states of the WTO, and avoid misunderstandings and possible trade conflicts. 

Fourth, the trade policy review of China this time has further strengthened the recognition of WTO members on the values of the organization and the significance of trade policy review. Therefore, it can help boost people's confidence in the WTO when the organization confronts difficulties. Thank you. 

Phoenix TV:

As we know, the eighth trade policy review has coincided with the 20th anniversary of China's entry into the WTO. Some members hold that China has not fully fulfilled its WTO commitments up to now. What does China think of such view? Thank you. 

Wang Shouwen:

This year marks the 20th anniversary of China's entry into the WTO. At the time of its accession, there were a protocol of accession, accompanying a working party report, stipulating China's commitments after its accession and the timetable for fulfilling the obligations. If you take the schedule for your reference, you will find that we have fully fulfilled our commitments stipulated by the WTO and the promises we made. Moreover, several directors-general of the WTO and most of its members have fully affirmed and recognized this. I will show you some examples. 

First, in terms of adapting to WTO rules, we need to revise laws, regulations, and policies to conform with WTO rules after China entered into the WTO. The Chinese central government repealed more than 2,000 pieces of laws, regulations, and departmental rules, and local governments removed more than 190,000 local laws and regulations. After China's accession into the WTO, we brought our laws, regulations, and policy framework fully into line with WTO rules according to the timetable. In a given period of time after China's accession into the WTO, we have worked to ensure China's legal and policy systems consistent with WTO rules. Meanwhile, we also ensured that the newly enacted policies and laws and regulations conform and continue to conform with WTO rules. 

Second, in terms of opening the market, we promised to reduce goods tariffs to below 9.8%. At the beginning of China's accession to the WTO, the figure was 15.3%. We have fully delivered on this commitment. China's general tariff is now only 7.4%, lower than the average ofdeveloping country members and approaching the levels of developed country members. China has also widely opened its market in the services industry. The Protocol of Accession and the Working Party Report stipulated that 100 sub-sectors in nine categories needed to be opened by 2007. Now, China has opened nearly 120 sub-sectors, exceeding our commitments.

Third, in terms of complying with laws and regulations, our laws, regulations, and policies should conform with WTO rules, and we have also done quite well in this regard. Explicitly speaking, we have set up intellectual property courts in some places and even particular judicial organs of intellectual property in some provinces to enhance intellectual property protection. We have done well in ensuring laws and regulations of intellectual property conform with WTO rules. In addition, more efforts have been made in the enforcement, as well as in providing administrative and judicial protections. To improve the transparency, we have timely notified the WTO of the adjustment and implementation of China's legislation, as well as of laws and regulations. The number of notifications has exceeded 1,000. Among them, the notification of subsidy policies is very difficult to prepare. WTO member countries need to submit to the organization the amount of subsidy the government gives to its enterprises and industries, such practice was deemed by many WTO members, especially developing country members, as the most challenging task. The Chinese government has overcome many difficulties and made timely notifications. This July, China notified the WTO of subsidy policies between 2019 and 2020, setting an excellent example for other WTO members. 

China had also honored previous rulings of specific cases before the WTO dispute settlement mechanism was formed. We executed all those rulings no matter whether they were favorable for China or not. No retaliation from complaining members has been incurred due to China's nonacceptance of WTO rulings. Based on the aspects mentioned above, we can see that China has fully and effectively fulfilled its WTO commitments. 

As I just mentioned, some members also raised other concerns and expectations that may go beyond WTO rules. It is improper to judge that China has not fulfilled its commitments based on rules beyond WTO provisions. Specifically, some regulations of intellectual property in the WTO Agreement on Trade-related Aspects of Intellectual Property (TRIPS) are different from those in some free trade agreements. Therefore, it is inappropriate to ask China comply with intellectual property provisions of some high-standard free trade agreements within the framework of the WTO. 

Generally speaking, China has done an excellent job fulfilling its WTO commitments, which is not only China's view but also the view of WTO members and several directors-general. Thank you. 

CGTN:

Mr. Wang just mentioned the subsidy notification. We know that the subsidies are a hot issue in the WTO reforms. Many WTO members have proposed tightening the subsidy rules even further. Will China be supportive of negotiations on subsidy rules under the framework of WTO reform? Does China support tightening the subsidy discipline? At the same time, how does China plan to increase the transparency of its subsidy policies? Thank you.

Wang Shouwen:

Thank you for your question. Mr. Yan will answer this one.

Yan Dong:

Thank you for your question. Subsidies are a policy tool commonly used by governments around the world. They are mainly used to mitigate market failures and achieve various public policy objectives, such as promoting economic development, technology research and development, environmental protection and employment stabilization. More specifically, during the COVID-19 pandemic, WTO member governments have introduced numerous subsidy measures to help domestic enterprises overcome difficulties and guarantee employment and social stability.

The WTO has a special agreement for industrial products, called the Agreement on Subsidies and Countervailing Measures (SCM Agreement). The WTO also has a special agreement for agriculture subsidies, called the Agreement on Agriculture. These two agreements have established specific regulations for the WTO members, in terms of providing industrial and agricultural subsidies. Among them, the SCM Agreement prohibits a subsidy if it is contingent on export performance or on the use of domestic over imported goods. Moreover, it stipulates that, if subsidized imported products harm the domestic industry, the importers can enact countervailing measures.

These two agreements were both reached in the 1990s. Now, however, after operating for more than 20 years, the overall situation is fine, but problems do still exist. For instance, agricultural subsidy rules are critically unfair, imbalanced and unreasonable. The rules grant permissions for some developed members to have high agricultural subsidies. Some members are allowed to wrongly enact countervailing measures on industrial products to protect their domestic industries. Aside from that, the original subsidy rules do not reflect the economic and trade reality of today, and the rules are incapable of meeting WTO members' shared demands.

China supports necessary reforms to the WTO and is open to launching subsidy negotiations and discussions under the framework of WTO reform. Specifically, we have three detailed proposals: First, the agriculture subsidies must be discussed in concert with industrial subsidies to ensure equitable competition across these two important fields. Second, the discussions should address tightening trade remedy disciplines such as countervailing and anti-dumping, so as to solve the current problem of abusing trade remedy measures. Third, the issue of resuming non-actionable subsidies should also be discussed, so as to leave policy space for members in response to the pandemic and climate change.

You mentioned the issue of subsidy transparency. The WTO requires its members to submit notifications for subsidy policies and agricultural domestic support on a regular basis. Agricultural domestic support is the issue of agricultural subsidies. China is one of the members that adequately fulfilled these obligations. During the review, China submitted two subsidy policy notifications in accordance with WTO requirements, while some major developed members delayed their notifications for several months, and still, others are yet to submit their notifications at all. With regard to the notification for domestic support on agriculture, China plans to submit the latest notification soon. That's all for your question. Thank you.

Shenzhen Satellite TV:

When China joined the WTO, its global share of GDP was only 4%, and its per capita GDP was only 8,700 yuan. At present, China accounts for 17.4% of global GDP and its per capita GDP has reached 72,000 yuan. Some members hold the view that, in the context of its growing comprehensive national strength, China should give up the special and differential treatment enjoyed by developing members in the WTO. What is China's view on this? Thank you.

Wang Shouwen:

Thank you for your question. Under the strong and correct leadership of the CPC, the Chinese government has led the people of the whole country to adhere to the basic national policy of reform and opening-up, give full play to institutional advantages, and follow the general global trends. After decades of hard work and unremitting efforts, our economic and social development has indeed made considerable progress, and our comprehensive national strength is also increasing. However, we must also be aware that China still faces the serious problem of unbalanced and inadequate development, and the task of its own development remains daunting. According to the report of the 19th National Congress of the CPC, China's international status as the world's largest developing country remains unchanged. China's international status as a developing country has not changed.

You mentioned the issue of special and differential treatment. There are special provisions in the WTO, whereby developing members enjoy special and differential treatment in terms of market opening and compliance with rules. Specific rights and obligations have to be decided through negotiations. According to the statistics of the WTO Secretariat, there are 155 provisions on special and differential treatment in the WTO agreement, covering six areas: increasing trade opportunities, safeguarding the interests of members, maintaining policy space, transitional time-periods, technical assistance and special flexibility for the least developed countries (LDCs). For example, one agreement stipulates that developed members need to implement immediately, but developing members can do so within five years. Developing members enjoy such transitional periods, which is special and differential treatment.

Some members think that China should give up its special and differential treatment. I would like to share with you some information. When China joined the WTO, we adhered to the principle of seeking truth from facts and undertook obligations within our capabilities in accordance with the principle of balancing rights and obligations. We actually enjoyed less special and differential treatment than other developing members. 

Since its accession to the WTO, China has never used special and differential treatment as a "shield" to impede the progress of the negotiations. In fact, China's position and practices have made important contributions to some WTO negotiations. For example, the WTO has reached the Trade Facilitation Agreement (TFA). There are some class C measures in the agreement, which are measures that can only be implemented after developing members receive financial support from developed members. China insists on completing these by itself and does not need financial support from others. That is, we have not asked for special and differential treatment. There are also some class B measures, which can only be implemented after a transitional period. Developing countries should implement them after a transitional period, while developed countries need to implement them immediately. China is a developing country, but we have few class B measures. Such efforts have contributed to the conclusion and implementation of the agreement. As another example, in the negotiations on the expansion of the Information Technology Agreement (ITA), as a developing country, we demanded terms and made our offers according to the balance of rights and obligations. China contributed significantly to the success of the expansion negotiations. Therefore, in the agreements reached after China's accession to the WTO, we have enjoyed less special and differential treatment. 

In future negotiations, as a responsible major country and the largest developing country, we will continue to adhere to the balance of rights and obligations, deal with special and differential treatment in a pragmatic manner according to our own level and ability of economic development, promote WTO reform, safeguard the legitimate rights and interests of developing countries and defend the multilateral trading system. Thank you.

The Straits Times:

Earlier you mentioned that nearly 20 years after China's accession to the WTO, there have been changes to the market in the form of a foreign investment law and better protection of IP rights, but the fact remains that there are still areas that are out of bounds to foreign investment and there is preferential treatment for state-owned enterprises. And this has come under criticism from other members during the review. So, what is China going to do to rectify this? Thank you. 

Wang Shouwen:

Thank you for your question. As I emphasized when answering the previous question, China has fully fulfilled its WTO accession commitments and obligations. There isn't any promised reform left unfulfilled.

You mentioned that China's SOEs receive special treatment. Regarding this question, article 16 of the PRC's Constitution stipulates state-owned enterprises have decision-making power in operation and management within the limits prescribed by law. China's SOEs are independent market entities that engage in independent operation, financing, self-discipline, and self-development. They compete with enterprises of other ownerships in the market on a level playing field, with no preferential treatment attached. In fact, in recent years, we have promoted mixed-ownership reforms at China's state-owned enterprises. So far, mixed-ownership enterprises account for over 70% of all legal entities of central SOEs, with listed companies being the primary carrier for the reforms. According to the statistics, SOE-controlled listed companies account for 67% of the assets of central SOEs and 87% of the profits respectively. Listed companies publish quarterly, semi-annual and annual reports, which serve as a transparent source of information to find out whether they enjoy special treatment or not. To conclude, China's SOEs do not enjoy special treatment. They are market entities with decision-making power in operation and management according to the Constitution.

As you mentioned, China has implemented the Foreign Investment Law, but there are still people criticizing China for keeping some areas off-limits to foreign investment. But I want to stress that China has opened up its market more and more of its own accord, instead of doing it as a WTO obligation. Under the WTO, China has fully complied with the Agreement on Trade-Related Investment Measures (TRIMs). The reason why China still prohibits or restricts foreign investment in some areas is that the WTO does not have relevant regulations, and many countries have similar prohibitions or restrictions. China also hopes that some bans and restrictions can be removed, but this requires WTO or bilateral investment negotiations. For example, China once held bilateral investment treaty negotiations with the United States; China and the EU have already concluded the negotiations for the Comprehensive Agreement on Investment (CAI). In other words, to open up wider and further relax restrictions on foreign investment through bilateral investment treaties or investment chapters in free trade agreements requires channels beyond the WTO. China is willing to address the investment access issue this way. For example, China has formally applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which sets high standards for investment. It is unfair and unreasonable to say that China's investment restrictions violate WTO regulations.

We understand the hope of some countries that China should further relax investment access. However, criticizing China in this way and saying that China has not fulfilled WTO regulations is unreasonable, unfair, and unacceptable.

On the whole, China has fulfilled all the commitments made on its accession to the WTO. China's SOEs are equally-treated market entities that have decision-making power in operation and management according to the PRC's Constitution. China has already fulfilled its investment obligations under the WTO, and has constantly opened wider to the outside world following an independent path. As we know, China's first negative list for foreign investment, initially introduced for the Shanghai FTZ, contained 190 items restricted for foreign investment. Now the list has been shortened to 30 items. So China has taken big strides to open up its investment access. We are willing to further expand market access for foreign investment both of our own accord, and through bilateral investment treaties, free trade agreements, or WTO negotiations. Thank you.

CNR Business Radio:

The WTO's 12th Ministerial Conference (MC12) will be held about one month later, with fisheries subsidies being a key issue. How is the progress of negotiation? What efforts has China made for the 12th Ministerial Conference to reach an outcome on the issue? Thank you.

Yan Dong:

Thank you for your question. Fisheries subsidies negotiations have long attracted extensive attention. It is one of the objectives of the WTO Agreement to achieve mutual support between trade policies and environmental protection policies and promote sustainable development. To this end, WTO members launched the Doha Round of negotiations in 2001, with fisheries subsidies as one of the negotiated issues.

The fisheries subsidies negotiations aim to formulate new subsidy rules, restrict harmful fisheries subsidies, combat illegal fishing, curb overfishing, and help the sustainable development of marine fishery resources. However, subjected to the overall progress of the Doha round of trade talks and coupled with the large differences in the development stages of each member and different interest demands and different resource endowments, the fisheries subsidies negotiations are still ongoing. So far, the negotiations have lasted for 20 years. In 2015, the United Nations Sustainable Development Summit adopted the 2030 Agenda for Sustainable Development, in which Goal 14.6 set out the goal of integrating fisheries negotiations by 2020. In 2017, the 11th WTO Ministerial Conference reiterated the mandate and goals of the fisheries subsidies negotiations. At present, all parties have agreed to conclude the negotiations before the 12th WTO Ministerial Conference to be held at the end of November.

Reaching an agreement on fisheries subsidies will be an important aspect for the WTO to contribute to the realization of the United Nations' 2030 Agenda for Sustainable Development, which is conducive to the sustainable development of marine fisheries and is also of great significance to strengthening global confidence in the WTO and reviving multilateralism.

At present, the fisheries subsidies negotiations are in the final sprint stage. China has always actively participated in the negotiations, "promoting talks, promoting reconciling, and promoting facilitating," and has successively put forward a number of proposals in the negotiations and jointly promoted the negotiations of fisheries subsidies with all parties to reach an agreement as soon as possible. As a developing country and a major fishery country, China will undertake international obligations in the negotiations that are commensurate with its own development stage and capabilities.

In addition, from a domestic perspective, China has taken the initiative to implement the United Nations Sustainable Development Goals and adjusted domestic fishery management and subsidies policies. For example, we implement total control on the production capacity of fishing vessels and the amount of fishing; we have also taken the initiative to adopt resource conservation measures such as the summer fishing moratorium and the voluntary moratorium on the high seas; we comprehensively strengthen the implementation of international protocols for offshore fisheries; and we severely crack down on illegal fishing with a "zero tolerance" attitude. Meanwhile, we continue to adjust the fisheries subsidies policies. In May this year, the Ministry of Finance and the Ministry of Agriculture and Rural Affairs of China issued a notice on implementing support policies for fisheries development to promote high-quality development of fisheries. This document clearly states that it shall "conform to the general trend of WTO fisheries subsidies negotiations, and promote high-quality and sustainable development of fisheries." One of the major policy highlights of this document is to cancel fuel cost subsidies, change the direction of subsidies, guide fishermen to conserve fishery resources, place more emphasis on green development, ensure people's livelihoods and resource conservation, and promote high-quality fishery development.

China firmly supports the multilateral trading system and the completion of fisheries subsidies negotiations as soon as possible before the 12th WTO Ministerial Conference. As a responsible major fishery country, China will continue to take concrete actions to support the prohibition of harmful fishery subsidies that lead to excess production capacity and overfishing. Thank you.

The Paper:

China has joined the RCEP and is also seeking to join the CPTPP. How does the Ministry of Commerce view the relationship between regional trade agreements and WTO? In addition, will plurilateral agreements replace multilateral agreements and become the mainstream of international economic and trade relations in the future? Thank you.

Wang Shouwen:

Thank you for your questions. We believe that the arrangements of the multilateral trading system and regional free trade agreements are the two wheels that drive economic globalization and the liberalization and facilitation of international trade and investment. These two wheels promote each other and cannot be partial and negligible. We don't think it's appropriate to leave any of them out.

The multilateral trading system, with the WTO at its core, is the foundation and core platform for promoting the liberalization and facilitation of global trade. As you all know, the WTO has 164 members, and their trade volume accounts for more than 98% of the global trade. No other agreements can reach this level. The vast majority of trade in the world is carried out between WTO members. Take China, for example: last year, our import and export volume was $4.65 trillion, among which our trade volume with WTO members reached 97.9%. That is to say, $4.56 trillion of China's $4.65 trillion foreign trade is conducted with WTO members. Therefore, it is in China's interest to adhere to the development of the multilateral trading system and maintain the effectiveness and authority of the multilateral trading system.

We believe that the regional free trade agreements arrangement is a useful supplement to the WTO's multilateral trading system and is not in conflict with the WTO. Free trade agreements are generally "WTO plus." Free trade agreements include not only the opening of trade in goods and trade in services but also the opening of investment. Moreover, the level of openness in trade in goods and services is much higher than that of the WTO. The WTO has no regulations on investment opening, while free trade agreements do. In terms of market opening and market access, free trade agreements are "WTO plus." In addition, in terms of rules, the free trade agreements also stipulate some areas that the WTO has not yet stipulated, such as in e-commerce, digital economy, etc. So, as we can see, regional trade agreements not only have a higher level of trade liberalization and facilitation but even involve investment aspects and rule aspects and can be regarded as "experimental fields" for these new rules. The results of these "experimental fields," if adopted by the WTO in the future, will be very beneficial to the liberalization and facilitation of global trade and investment. This is the benefit of free trade zones or free trade agreements.

Despite the benefits of FTAs, we should also recognize that they cannot supplant the multilateral trade regimes. FTAs cannot solve every issue. The subsidy issue mentioned by a journalist just now is such a case. The effect of FTA solutions is limited for subsidies, including agricultural subsidies and public reserves for food security, which need to be addressed within multilateral trade regimes. 

Moreover, FTAs are negotiated and signed between two or more countries. According to the WTO, there are more than 350 FTAs currently being implemented, creating the spaghetti bowl effect. If the contents of these agreements are stipulated in WTO agreements, they will be universal and convenient. Hence, the spaghetti bowl effect of FTA negotiations can be solved through multilateral trade regimes of WTO agreements. It is evident that FTAs have their advantages, and the WTO agreements also have their own. 

Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, said in his report to the 19th CPC National Congress that China will support multilateral trade regimes and work to facilitate the establishment of free trade areas, and build an open world economy. In this regard, the MOC has implemented Xi's remarks and upheld the multilateral trading regimes. In June 2018, we released a white paper titled "China and the World Trade Organization." In November 2018, we issued China's position paper on WTO reform. In May 2019, we submitted a proposal on WTO reform to the WTO. In November 2019, we initiated and hosted the Informal WTO Ministerial Meeting in Shanghai. All these practices show China's support for the WTO's development.

Moreover, China is open to FTAs that are open, transparent, inclusive, and consistent with WTO principles. China is also accelerating the move to implement the FTA strategy and is playing an active part in negotiations on regional trade agreements. By October, China had signed 19 FTAs with 26 trading partners. In addition, China signed the Regional Comprehensive Economic Partnership (RCEP) with the other 14 members last year, and it will come into effect early next year. Recently, China has formally applied to join the CPTPP. All these examples reflect China's high regard for the role of regional trading agreements.

In summary, I want to repeat that the multilateral trade regimes and regional FTAs are two important wheels to drive economic globalization and liberalize and facilitate international trade and investment. Furthermore, they are complementary rather than a substitute for each other. You just asked if one of them will become mainstream? Personally speaking, I think the multilateral trade regime will play a significant role in the coming period, and FTAs may play such a role in another period. They are both essential wheels driving world economic growth. Thank you.

Bloomberg:

My question is that it seems there are a lot more criticisms of China this time at the review than at the seventh review last time. Please tell us your thoughts on these criticisms from Japan, the U.S., the EU, Australia and other nations. Were they justified anywhere? Will you be making any changes in answer to these criticisms? Thank you.

Yan Dong:

Thank you for asking. Mr. Wang has given a detailed answer to your question, especially on China's WTO commitment. The review members raised questions and concerns varying widely. China is a major trading partner of more than 120 economies globally, spotlighting its trade policies. We fully understand it. So, we made written replies before the review meeting to the 2,151 questions raised by WTO members and explained and clarified specific concerns of some members of the meeting. We believe that such two-way interaction is positive and effective and fully demonstrates the value of the trade policy review mechanism.

Of course, we will work on the concerns of relevant members and look forward to further exchanges and communication with them on other occasions. Thank you.

Wang Shouwen:

I'd like to add more. As I mentioned just now, China will take seriously questions, concerns, complaints, and even criticisms raised at the policy review. But I'd like to classify these comments and criticisms into two categories. For the questions in the first category stipulated in the WTO agreements, we will improve what we did not do well following the WTO agreements and sustain what we did well. The questions in the other category, including the criticisms raised by some members, as the journalist mentioned, may have gone beyond the WTO provisions. Therefore, they should be taken as a "wish list" because it is unfair, unreasonable, and unacceptable to make China fulfill obligations beyond the WTO under the remit of the WTO. I'd like to repeat that China will take all concerns seriously as stipulated in WTO agreements to fulfill its WTO obligations. But it is inappropriate to demand China fulfill obligations beyond the WTO boundaries. Thank you.

Cover News:

Some representatives from WTO members pointed out during the review that China has conducted non-market practices in its global trade and that the government's intervention in economic activities has caused overcapacity and distorted the market. What is your comment on this matter? Thank you.

Wang Shouwen:

Thank you for your question. Some WTO members also talked about this issue on some other occasions. I'd like to answer it from the perspective of our foundation. What is our foundation? It is the Constitution of the People's Republic of China (PRC), where Article 15 prescribes that the state shall practice a socialist market economy. Since the reform and opening up, especially after the 18th National Congress of the CPC, China has committed to deepening all-round reform and continuously improved the socialist market economy. It can be said that China's marketization has been continuously advanced, deepened and intensified. Currently, 97% of prices of products and services are determined by the market. China has formed a relatively complete system of market-based interest-rates, and further improved the market-based RMB exchange rate regime. Reforms have also been advanced on the factor market, including in the areas of land, labor force, capital, technology, and data.

Meanwhile, China is building a high-standard market system and fully implements a nationwide negative list for market access. China has improved the fair competition review mechanism, strengthened the antitrust and unfair competition law enforcement, and the Enterprise Bankruptcy Law is universally applicable to various market entities. China has eliminated all barriers in various areas, including market access and exit, utilization of factors, and protection of intellectual property rights, and as a result, fostered a market environment for fair competition.

In May 2020, we issued a guideline to accelerate the improvement of the socialist market economy in the new era. The guideline points out that China will continue reforms to develop the socialist market economy, and show more respect for the general rules of the market economy. Efforts will be made to minimize the government's direct allocation of market resources and direct intervention in microeconomic activities, so as to give full play to the market's decisive role in resource allocation, as well as bring into better play the government's function in effectively correcting market failures. In such a market economy, how can there still exist many non-market practices or government-interventions in the economy? 

You mentioned overcapacity, which is a common, cyclical, and structural problem in economic development. It is a global challenge that calls for joint efforts by all stakeholders to tackle. Taking previous overcapacity in the steel industry as an example, its root cause was the imbalance between supply and demand caused by the 2008 global financial crisis. In order to cope with this issue, China has made tremendous efforts and paid a great price. In fact, China has exerted the greatest efforts and achieved the best outcomes in cutting overcapacity among relevant countries. Since the implementation of supply-side structural reforms in 2015, we have achieved notable progress in reducing overcapacity. During the review, some members raised this issue, and we explained that from 2018 to 2020, China had cut its crude steel capacity by 150 million tonnes. Now, the capacity utilization rate for crude steel and aluminum is over 80 percent and over 85 percent, respectively, demonstrating that there is no overcapacity in these two sectors. We will remain on high alert for possible occurrence of overcapacity in the future and be committed to establishing and improving a long-term mechanism to resolve overcapacity through market-oriented and law-based approaches. 

As socialism with Chinese characteristics has entered a new era, we will fully implement the new development philosophy, accelerate the pace in creating a new development dynamic, promote high-quality development, unswervingly deepen market-oriented reforms, and expand high-level opening-up, so as to build a high-level socialist market economy. During this process, we will continue to earnestly fulfil our WTO commitments, treat enterprises under all forms of ownership equally, and create a fair and open business environment for both Chinese and foreign companies. Thank you.

Xing Huina:

We will have one last question.

CRNTT:

During the WTO's eighth trade policy review of China, members of the organization spoke highly of China's commitment to safeguarding the multilateral trading system and supporting the WTO so that it could play a bigger part. What's China's stand on proactively participating in reform of the WTO in the future? Thank you.

Wang Shouwen:

Thank you for your question. As I've mentioned, China attaches great importance to enhancing the authority and efficacy of the WTO and has paid great attention to its reform. President Xi Jinping noted that China supports necessary reform of the WTO; that the reform should seek to keep up with the times so that the WTO can better facilitate market opening-up and promote growth; and that the reform should be conducive to safeguarding free trade and multilateralism and narrowing development gaps. This is China's fundamental stand on the reform of the WTO.

In terms of specific fields of the reform, I'd like to expound on the following aspects. First, regarding the agenda of the reform, we believe that the WTO should not only address conventional and unresolved issues left from the past but also develop outlines for emerging issues and update the relevant rules in keeping with modern society. For example, issues concerning the agriculture sector are one of the important conventional topics. We believe that there are highly unfair rules on agriculture and that relevant subsidies have severely distorted international trade in the sector. Some developed member states of the WTO have received a huge amount of aggregate measurement of support (AMS), which requires more attention from the media. For example, for some countries, the AMS on sugar accounts for more than 65% of its price, and the AMS on cotton is 2.8 times the value of the output of cotton. It is unreasonable that developed countries are entitled to such a huge volume of subsidies.

However, developing member states of the WTO can only subsidize up to 10% of the product output value. There is a special term called "de minimis," which stipulates that subsidies provided to developing countries can only account for up to 10% of the product output value. The 10% subsidy has very little impact on trade. Yet, it is of paramount importance and indispensable to the supply of agricultural products as well as the security of agricultural industry and food. It is especially crucial for the small-scale agricultural economy and farmers' livelihoods. Therefore, China advocates canceling the huge amount of AMS, which severely distorts international trade, while maintaining the small number of subsidies that are necessarily needed for the small-scale agricultural economy, so as to protect agriculture and food security.

In addition, the public and safe reserve of food is also a conventional issue, and we need to come to an agreement on this through negotiation as soon as possible. In the meantime, we think that some emerging issues should also be considered, such as e-commerce, investment facilitation, as well as fisheries subsidies just mentioned by a journalist. We should reach agreements on these issues as soon as possible.

Second, dispute settlement is one of three important functions of the WTO. The dispute settlement mechanism is very important, and it can help safeguard the norms of global trade. If a country thinks that another country is doing something wrong, then it can file a lawsuit. If the latter is wrong indeed, then it will need to rectify the situation. If there is no such dispute settlement mechanism, then disputes between countries will be handled via the "law of the jungle," which means that the standard of right and wrong will be determined by those with the most strength. This is destructive to international trade. Unfortunately, due to the obstruction of some member states, the dispute settlement mechanism of WTO is facing a crisis, and its Appellate Body hasn't been functioning. We believe that WTO reforms should address issues related to its Appellate Body as soon as possible. China has placed great emphasis on this issue and has been advocating to restore the normal operation of WTO's Appellate Body. Given the current problems facing the Appellate Body, China, the European Union, and other WTO member states have agreed to a multi-party interim appeal arbitration arrangement. Of course, this arrangement would only be temporary. We hope that trade disputes could be settled through the two tiers trial methods of these third parties rather than through economic bullying.

The third aspect is about the methods that WTO can take to carry out reform. For conventional issues and those concerning the majority of member states, we uphold the principles of consensus to carry out reforms. For emerging issues such as e-commerce, we think that the principles of consensus cannot be accepted by every WTO member for now. We hold an open attitude and propose issuing joint statements. This means that a group of member states can first reach plurilateral agreements to address specific issues in these fields, and the rest of the members can join in once all conditions are favorable in the future. 

In general, China has placed great emphasis on the reform of the WTO, and we are willing to participate in the course in a fairly proactive and constructive way so to enhance the WTO's authority and efficacy and contribute to global economic growth, especially the liberalization and facilitation of global trade and investment. Thank you.

Xing Huina:

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

Translated and edited by Wang Qian, Duan Yaying, Xu Xiaoxuan, Yuan Fang, Cui Can, Wang Yanfang, Yang Xi, Li Huiru, Yan Xiaoqing, Huang Shan, Xiang Bin, Liu Qiang, Dong Qingpei, Zhang Rui, Zhang Tingting, Zhang Junmian, Zhu Bochen, Wang Yiming, David Ball, Drew Pittock, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Ye Min, vice minister of ecology and environment

Sun Zhen, person in charge of the Department of Climate Change under the Ministry of Ecology and Environment

Chairperson:

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

Date:

Oct. 27, 2021

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference being held by the State Council Information Office (SCIO). Today, the SCIO issued a new white paper titled "Responding to Climate Change: China's Policies and Actions." We are holding this press conference to introduce and interpret the white paper.

Under the guidance of Xi Jinping Thought on Ecological Civilization, the white paper elaborates on China's policies, actions and achievements in responding to climate change since the 18th National Congress of the Communist Party of China (CPC), as well as the country's proposals for improving global climate governance. At around 19,000 Chinese characters, the white paper consists of preface, main body and conclusion. The main text is divided into four parts: "China's New Responses to Climate Change," "Implementing a National Strategy of Actively Responding to Climate Change," "Significant Changes in China's Response to Climate Change" and "Building a Fair and Rational Global Climate Governance System for Win-Win Results."

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

In order to help you gain a better and more accurate understanding of the white paper, we have invited Mr. Ye Min, vice minister of ecology and environment, and Mr. Sun Zhen, person in charge of the Department of Climate Change under the Ministry of Ecology and Environment (MEE) to attend today's press conference. They will introduce relevant information and answer your questions. Now, I will give the floor to Mr. Ye.

Ye Min:

Ladies and gentlemen, friends from the media, good afternoon. Welcome to the press conference on the white paper "Responding to Climate Change: China's Policies and Actions." First of all, I would like to thank you, friends from the media, for your long-term care and support for China's efforts to respond to climate change.

Climate change is a stern challenge for all of humanity, and calls for joint responses from countries around the world. The sustainable development of the Chinese nation and the future of the planet depend on tackling it successfully. As an active promoter and a firm practitioner of climate action, China attaches great importance to its response to climate change. China's response to climate change is an important part of its pursuit of eco-environmental progress, and a sure way to change the development model and achieve sustainable development.

Under the guidance of Xi Jinping Thought on Ecological Civilization, we have achieved notable progress in implementing a national strategy of actively responding to climate change over the past years. Based on a comprehensive review of China's responses to climate change, we organized the compilation of this white paper. This is the second time that China has issued a white paper on its response to climate change at the national level after the first publication in 2011. The main text of the new white paper includes "China's New Responses to Climate Change," "Implementing a National Strategy of Actively Responding to Climate Change," "Significant Changes in China's Response to Climate Change" and "Building a Fair and Rational Global Climate Governance System for Win-Win Results." The document elaborates on China's philosophy, policies and actions concerning its response to climate change since the 18th CPC National Congress, especially during the 13th Five-Year Plan period (2016-2020). It showcases the country's progress and achievements in addressing the challenges, and its contribution to global climate action. The white paper also offers a systematic picture of China's proposals and approaches to climate change.

Since the 18th CPC National Congress, China has advanced its climate action and achieved progress in the following ways: carbon intensity has been significantly decreased; energy mix and industrial structure have been steadily optimized; institutional mechanisms for low-carbon development have improved; solid steps have been taken in building a national carbon market; a number of low-carbon models of development with distinctive features have emerged; the ability to adapt to climate change has been reinforced; and public awareness of pursuing green, low-carbon lifestyles has considerably increased.

At the same time, the Chinese government actively and constructively participates in global climate governance. The Chinese government adheres to the principles of multilateralism, as well as common but differentiated responsibilities, attaches great importance to international cooperation on climate change and joins international negotiations on climate change, carries out in-depth South-South cooperation on climate change, promotes the conclusion and accelerated implementation of the Paris Agreement, and leads the new pattern of global climate governance with Chinese ideas and practices, and has gradually become an important participant, contributor and leader in building a global ecological civilization.

In 2020, President Xi Jinping made a major announcement regarding carbon peak and carbon neutrality, demonstrating China's determination to pursue green and low-carbon development and join hands with the international community to tackle climate change. This is a significant strategic decision made after careful consideration by the CPC Central Committee with Comrade Xi Jinping at its core, coordinating the domestic and international situations. In the next step, we will resolutely implement the decisions and arrangements, while continuing to advance climate change initiatives.

The 26th United Nations Conference of Parties on Climate Change (COP26) will be held in Glasgow, UK. This conference will finalize negotiations on the remaining issues of the implementation rules of the Paris Agreement. Meanwhile, China has embarked on a new journey of building a modern socialist country, entering a critical period of comprehensive green transformation for economic and social development and shifting from quantitative change to qualitative change in ecological environment. At this moment, it is significant that we release the white paper, "Responding to Climate Change: China's Policies and Actions," to enhance domestic and international understanding of China's climate action, and share Chinese wisdom and solutions.

Responding to climate change is a cause shared by all of mankind. China will continue to implement its proactive national strategies on climate change, incorporate carbon peak and carbon neutrality into the overall layout of constructing an ecological civilization, and make every effort to respond to climate change under the new situation. China is also willing to work with the international community to promote the comprehensive, balanced and effective implementation of the Paris Agreement, jointly build a fair, reasonable, cooperative and win-win global climate governance system, and start a new journey in the global response to climate change.

Next, my colleagues and I are willing to answer questions from media friends. Thank you all!

Xing Huina:

Thank you, Mr. Ye, for your introduction. Now you are welcome to ask questions. Please let us know the news organization you are from before asking questions.

CCTV:

What is the difference between today's white paper on climate change and those of the past? Secondly, what do you think is the biggest opportunity for China to deal with climate change? What are the other challenges? Thank you.

Ye Min:

Thank you for your questions. Regarding the white paper, as I just mentioned, in 2011 the State Council Information Office released the white paper "China's Policies and Actions for Addressing Climate Change (2011)." Then, from 2012 to 2020 we released "The Annual Report of China's Policies and Actions for Addressing Climate Change" every year and continue to inform the public of the progress and efficacy of China's climate change response.

Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to the work on climate change and implemented proactive national strategies on climate change. The work of tackling climate change has undergone historic and transformative changes, from understanding to conceptualizing and through to practice, while achieving world-renowned results. The white paper released this time systematically expounds upon General Secretary Xi Jinping's new ideas, new thinking and new strategies regarding China's response to climate change. It also provides a comprehensive overview of China's policies and measures to address climate change and all of the results since the 18th CPC National Congress, especially during the 13th Five-Year Plan period. Moreover, it systematically outlines China's path and plans to address climate change, and fully reflects China's important contributions and tremendous efforts to the issue, all of which demonstrates that China proactively shoulders the international responsibility for climate change as well as the responsibility and accountability of building a community with a shared future for mankind. At the same time, the most recent white paper reiterates China's stance and proposition on global climate governance and offers advocacy proposals and appeals to the international community to build a fair, reasonable, cooperative and win-win global climate governance system.

Regarding opportunities and challenges: Green and low-carbon development is not only a world trend but also a new engine of economic growth, as well as a new development opportunity for the future. The CPC Central Committee is far-sighted, makes precise deployments, seizes this period of strategic opportunities, and sets mid- and long-term goals and visions for addressing climate change. It regards an active response to climate change as a key task in advancing high-quality development and high-level ecological protection, which shows China's initiative to assume the international responsibility of responding to climate change and its role in promoting the construction of a community with a shared future for mankind.

In recent years, China has adopted a series of strong policy measures to adjust the industrial structure, optimize the energy structure, maximize energy efficiency, increase forest carbon sinks, and improve adaptability to climate change, while achieving remarkable results. As of the end of 2020, China's carbon dioxide emissions per unit of GDP had dropped by 48.4% compared to that of 2005, exceeding the 40% to 45% target that China had previously promised to the international community. At the same time, top-level design has been continuously improved, the construction of market mechanisms has been promoted, and public awareness has been raised, forming a solid situation and environment in which the efforts to address climate change continue to advance.

However, at the same time, our country is also faced with difficulties and challenges in dealing with climate change. As the world undergoes major changes unseen in a century, the rise of unilateralism and protectionism is also complicating the international situation in addressing the climate change issue. China pledges to achieve carbon neutrality around 30 years after peaking carbon dioxide emissions. The timeframe has been greatly shortened compared to that of major developed countries. Hence we are faced with more difficult tasks related to energy and industrial transformation. As the biggest developing country in the world, China is facing multiple challenges including developing its economy, improving living standards, curbing pollution, safeguarding energy security and so on. Additionally, we still have problems of unbalanced and inadequate development. At present, we also have deficiencies and weaknesses in the aspects of cognitive level, policy tools, measures and foundational capabilities when dealing with climate change. However, under the strong leadership of the CPC Central Committee, we are fully determined and capable of completing the arduous tasks of achieving peak carbon emissions and carbon neutrality. 

Next, we will ground our work in this new stage of development, resolutely implement the new development philosophy, foster a new development pattern, adhere to a systematic approach, and properly handle the relationships between development and emission reduction, the whole and parts, as well as the short term and the mid and long term. We will bring peak carbon emissions and carbon neutrality into the whole layout of the eco-civilization construction, unswervingly follow the path of green, low-carbon and high-quality development that gives priority to ecology, and resolutely carry out national strategies featuring proactive responses to climate change, in a bid to achieve peak carbon emissions and carbon neutrality on schedule. We will continue to make contributions to deal with global climate change. That is all from me. Thank you.

CNR:

Is China optimistic about COP26 to deal with the unresolved issues regarding the implementation of Article 6 of the Paris Agreement? What efforts will be made? Thank you.

Ye Min:

Thank you. Mr. Sun will answer your questions.

Sun Zhen:

Thank you, Mr. Ye. Thank you for your questions. The primary task for COP26 is to complete negotiations over the detailed rules for implementing the Paris Agreement, especially the market mechanism, that is, the unresolved issues under Article 6. They are the foundation and precondition for all parties to effectively implement the Paris Agreement in an all-round manner, as well as an important symbol of maintaining the trust in the multilateral mechanism among the international community, especially the industrial and commercial sectors. We expect all parties to work together in the same direction. Developed countries should take more constructive actions and fully demonstrate flexibility, uphold the principle of common but differentiated responsibilities, adhere to nationally determined goals and policies, and avoid retrogressive stances and even renegotiations over issues where consensus has already been reached.

Here are some key aspects. First, we hope the market mechanism can provide developing countries with financial support so they can better adapt to climate change. Adapting to climate change is a major concern for developing countries. At present, the funds provided by developed countries are far from meeting the needs of developing countries in this respect. China advocates providing stable and predictable financial support to help developing countries adapt to climate change. In particular, we expect developed countries to demonstrate a positive and constructive attitude so that all parties can work together to find reasonable solutions.

The second is the relationship between the emission reductions under the market mechanism and nationally determined contributions (NDCs). No parties should be required to adjust their NDCs due to the transfer of mitigation outcomes. At the same time, China understands the concerns of some parties over this rule. Therefore, we are willing to set a reasonable time limit based on the coverage of NDCs and other factors. We kindly request relevant parties to clarify the coverage of their NDCs when participating in the market mechanism.

The third is about the transition issue of emission reductions achieved before 2020. We hope to sustain the confidence and enthusiasm of industrial and commercial sectors in the market mechanism of the Paris Agreement. All parties should be allowed to use their certificated emission reductions before 2020 toward their NDCs and engage in emissions trading. For this purpose, we would like to explore some compromise solutions. China is willing to work together with the United Kingdom, which holds the presidency of COP26, and adhere to the multilateral process in an open, transparent, inclusive, party-driven, and consensus-based manner. We will maintain close communications and coordination in a bid to complete the agenda and negotiations over the unresolved issues regarding the implementation of the Paris Agreement. Thank you. 

People's Daily:

Mr. Ye, my question is what progress and achievements have been made regarding our country's response to climate change? What's the plan for the next step? Thank you.

Ye Min:

Thank you for your questions. China attaches great importance to dealing with climate change. China's responses to climate change are an important part of its efforts to achieve eco-environmental progress. In recent years, China has implemented a national strategy of actively responding to climate change and made positive progress through a series of policy measures including adjusting industrial structure, improving the energy mix, conserving energy and improving energy efficiency, establishing market mechanisms, and increasing forest carbon sink. The progress is mainly reflected in the following aspects:

First, China has effectively limited greenhouse gas emissions. China's carbon intensity in 2020 decreased by 18.8 percent compared with that in 2015 and dropped by 48.4 percent compared with that in 2005, which means that China had more than fulfilled its commitment to achieve a 40 to 45 percent reduction. China has basically reversed the rapid growth of its carbon dioxide emissions. Second, China has made progress in optimizing its energy mix. In 2020, China's non-fossil energy contributed 15.9 percent to China's total energy consumption, an increase of 8.5 percentage points compared with 2005. China has significantly reduced its reliance on coal consumption and made prominent progress in optimizing its energy mix. Third, China has constantly improved the national carbon market. A national market for trading carbon emission rights was officially launched on July 16, 2021. In its first performance cycle, China's power generation industry had a total of 2,162 major enterprises, covering over 4.5 billion tons of carbon emissions each year, making the market the world's largest in terms of the amount of greenhouse gas emissions covered. In addition, China has launched pilots and demonstrations on low-carbon development, constantly improved its ability to adapt to climate change, and raised the awareness of low-carbon development in all sectors of society. While addressing climate change at home, China has actively participated in global climate governance. It has played a historic role in promoting the conclusion, entry into force, implementation and formulation of detailed rules and regulations of the Paris Agreement. We also have actively engaged in South-South cooperation on climate change and helped other developing countries – in particular least developed countries, African countries, and small island countries – build a capacity to fight climate change.

In 2020, President Xi Jinping announced the goals to peak carbon emissions and achieve carbon neutrality. The CPC Central Committee made important arrangements for the related work. Recently, the CP China Central Committee and the State Council jointly released a document titled "Working Guidance For Carbon Dioxide Peaking And Carbon Neutrality In Full And Faithful Implementation Of The New Development Philosophy" and an action plan for peaking carbon emissions before 2030. China is accelerating its work on the 1+N policy system for peaking carbon emissions and achieving carbon neutrality.

In the next step, we will further implement the decisions and arrangements of the CPC Central Committee and the State Council. First, we will work actively to meet the goal of the 14th Five-Year Plan 2021-2025 on climate change. We will allocate the binding targets of reducing the carbon intensity by 18 percent to local governments. Second, we will promote actions to peak carbon emissions, push forward the implementation of the 1+N policy system framework for peaking carbon emissions and achieving carbon neutrality, and promote the building of an economic system that facilitates green, low-carbon, and circular development. Third, we will reinforce the coordination between responding to climate change and protecting the eco-environment. We will decrease the emissions of both pollution and carbon, and strive to achieve synergy and efficiency. We will also step up the formulation of an implementation plan for synergizing the reduction of pollution and carbon emissions. Fourth, we will continue to improve the building of the national carbon market. We will move forward on the introduction of provisional regulations on the administration of carbon emission rights trading . On the basis of a well-functioning carbon market in power generation industry, we will gradually expand the market to cover more high-emission industries. Fifth, we will advance the development of relevant systems, and implement a system that focuses on carbon intensity control supplemented by total carbon emission control. We will also establish the statistical and accounting mechanism and data management mechanism for greenhouse gas emissions, as well as a long-term mechanism for compliance. Sixth, we will raise public awareness of low-carbon development, and continue to promote the campaign of the National Low Carbon Day, so as to ensure that production modes and people's lifestyle become green and low-carbon. Seventh, we will ensure the preparation and implementation of a national strategy of adapting to climate change for 2035, and improve the ability of urban and rural construction, agricultural production, and infrastructure to adapt to climate change. We will also strengthen observation and assessment of climate change impacts. Eighth, we will continue to actively participate in international climate change negotiations, and step up efforts to build an equitable global climate governance regime that is cooperative and beneficial to all. Moreover, we will continue to carry out South-South cooperation on climate change. That's all. Thank you.  

Cover News:

General Secretary Xi said that addressing climate change is not something that others asked us to do; we are doing so on our own initiative. How do you understand this remark? How will addressing climate change affect China's economic and social development? Thank you.

Ye Min:

Thank you. General Secretary Xi Jinping has stressed many times that addressing climate change is not what others asked us to do; we are doing so on our own initiative. It is essential to China's sustainable development, and shows our commitment to the building of a community with a shared future for mankind. Coping with climate change is an important starting point to promote China's high-quality economic development. We will continue to inject power into high-quality economic development by establishing and improving an economic structure that facilitates green, low-carbon and circular development, building a clean and low-carbon energy system, advocating for a green and low-carbon lifestyle, and promoting the adjustment of economy, industry, energy, transportation and consumption structure. Coping with climate change is also an important part of high-level ecological environment protection. It will forge great synergy with pollution control, ecological protection and other measures, and will improve environmental quality from the source, enrich environmental governance means, improve environmental governance efficiency, and save environmental governance costs. Addressing climate change is also China's effort and contribution to promoting the building of a community with a shared future for mankind. China adheres to the principles of multilateralism and "common but differentiated responsibilities;" actively participates in and leads global climate governance; promotes the comprehensive, balanced and effective implementation of the Paris Agreement; firmly supports the reasonable demands of other developing countries; continuously promotes the global climate governance system to be more fair, reasonable, beneficial and cooperative; and promotes the building of a community with a shared future for mankind.

Coping with climate change well is significant to accelerating the formation of a new development paradigm with the domestic market as the mainstay and domestic and overseas markets reinforcing each other. It is also significant to exploring a new way of high-quality development that gives priority to ecological conservation and green development. This is both a challenge and an opportunity. 

As the largest developing country, China is still facing imbalances and inadequacies in development, and shoulders a series of arduous tasks, such as developing the economy, improving people's livelihoods, and controlling pollution. Given these facts, in the process of coping with climate change and achieving carbon peak and carbon neutralization, we should realistically base ourselves on China's national conditions, development stage and actual capacity; take a systematic approach to overall development; and properly handle the relationship between development and emission reduction, overall and local development, and short-term and medium and long-term development. We must also make steady, orderly and scientific deployment, and achieve solid progress.

At the same time, we must fully realize that taking stronger actions to deal with climate change and taping the huge potential of greenhouse gas emission reduction brought by the development of new economy, new technology, new business forms, institutional and policy innovation and reform in various fields are important driving forces to promote high-quality development. This will continue to inject impetus to green and low-carbon development, promote the comprehensive green transformation of the economy and society, and realize the fundamental transformation of development modes. Thank you.

Sky News:

China burns more coal than the rest of the world combined. It's still adding to coal power. In the document released today, you said you will only gradually reduce that. At the same time, you are asking other countries to drastically reduce their emissions. How long will that peak of coal use last? Why is apparently China prioritizing short-term economic growth over the future of the planet? Secondly, we've heard about the leadership of President Xi Jinping. Will he be attending the COP26? If not, why not? Thank you.

Ye Min:

Whether President Xi Jinping will attend the COP26 will be answered by our diplomatic department. You asked about the consumption and development of coal. This issue is of great concern to the public. I would like to ask Mr. Sun to introduce some specific situations and our considerations.

Sun Zhen:

Thank you, Mr. Ye, and thanks for the questions. The questions are long. I think you are mainly concerned about some recent situations, while you also raised a question on the relationship between short-term and long-term development. I will answer them briefly here.

It should be noted that energy is the basic guarantee and basic condition for economic and social development and people's livelihoods. In the long run, it is also the driving force for the progress of human civilization. At the same time, for the future, if we want to achieve sustainable economic and social development, it is particularly urgent to achieve clean and low-carbon development in the field of energy. In recent years, China has vigorously promoted the adjustment, transformation and upgrading of its energy structure, shifting its energy production structure from coal-based to diversified, and its energy consumption structure has become increasingly low-carbon. In 2020, the proportion of China's coal consumption in the total energy consumption decreased from 72.4% in 2005 to 56.8%. Meanwhile, the consumption of non-fossil energy accounts for 15.9% of total energy consumption. China has vigorously promoted the development of renewable energy, and the installed capacity of renewable energy has increased rapidly, ranking first in the world. By the end of 2020, the total installed capacity of non-fossil energy power generation in China had reached 980 million kW, including 280 million kW of wind power and 250 million kW of photovoltaic power, ranking first in the world for 11 and six consecutive years, respectively.

Chinese President Xi Jinping said in December 2020 that China will increase the share of non-fossil fuels in primary energy consumption to around 25%, and will bring its total installed capacity of wind and solar power to over 1.2 billion kW. He also said on Sept. 21 this year that China will step up support for other developing countries to develop green and low-carbon energy, and will not build new coal-fired power projects abroad. This fully demonstrates China's determination and courage to accelerate the adjustment of energy structure and build a clean, low-carbon, safe and efficient energy system. China will continue to control the growth of coal consumption, strengthen the development of renewable energy, accelerate the improvement of power system, and build a new power system suitable for a high proportion of renewable energy. Meanwhile, as the world's largest manufacturer of clean energy equipment, China will actively promote the development and utilization of clean energy, promote international cooperation around the world, and help developing countries accelerate the transformation of energy supply to an efficient, clean and diversified mode.

As a developing country, China is currently facing the arduous tasks of developing the economy, improving people's livelihoods, and maintaining energy security. There are still many difficulties and challenges in adjusting the energy structure, which can not be addressed overnight. We will take a systematic approach to overall development; continue to prevent risks; properly handle the relationship between current and long-term development, and the relationship between pollution and carbon reduction and energy security, industrial and supply chains security and people's livelihoods; effectively deal with the risks that may occur during the green and low-carbon transformation; and ensure safe carbon reduction. Thank you.

Phoenix TV:

What measures will China take to enhance compliance and transparency in addressing climate change? Thank you.

Ye Min:

Thank you. Mr. Sun will answer this question.

Sun Zhen:

Thank you, Mr. Ye, and thanks for the question. On this topic, let's start with the Convention. The global response to climate change should be based on the unity and cooperation of all countries. The provisions of the Convention on parties to submit national greenhouse gas inventories and strengthen transparency are not only compliance requirements for addressing climate change but also a cooperative mechanism for building mutual trust and positive incentives. The detailed implementation rules of the Paris Agreement set higher requirements in terms of content, quality and frequency of communications to ensure that policy actions and effects on climate change are more comparable and transparent. At the same time, it also clearly gives developing countries some flexibility on the issue of transparency, and requires developed countries to provide financial and capacity-building support to developing countries.

As the largest developing country, China has attracted extensive attention in regard to its transparency around climate change. So far, China has submitted three national communications and two biennial update reports, including five annual national greenhouse gas emission inventories. The inventory data released by China is reliable and the accounting method is scientific, which has been widely recognized by the international community.

The statistical accounting system of greenhouse gas emissions is the basis for inventory preparation and transparency construction. After years of efforts, we have established and improved the basic statistical system of greenhouse gas emissions, put forward a statistical index system covering five categories and 36 indicators, and built a statistical reporting system for addressing climate change. At the enterprise level, we have issued accounting methods and reporting guidelines for greenhouse gas emissions of enterprises in 24 industries, and organized the accounting and reporting of greenhouse gas emissions of enterprises. Recently, China has also set up a working group on carbon emission statistics and accounting under the leading group office of carbon peak and carbon neutralization work.

In the next step, China will continue to improve the statistical accounting system of greenhouse gas emissions, improve the support and guarantee ability to deal with climate change, ensure that China's statistical system to deal with climate change can meet the new requirements of the implementation rules of the Paris Agreement, and promote China's governance system and capacity to deal with climate change to a new level. Thank you.

Shenzhen Satellite TV:

My question is also about COP26. What are China's expectations for the conference? Thank you.

Ye Min:  

Thank you. COP26 will be the first time Conference of Parties to be held since the implementation of the Paris Agreement. China believes that this conference should first convey a strong political message on firmly upholding multilateralism and respecting multilateral rules. All parties should implement principles of common but differentiated responsibilities, as well as Nationally Determined Contributions outlined in the United Nations Framework Convention on Climate Change and the Paris Agreement, and contribute to addressing global climate change based on their unique national conditions. China looks forward to working with all parties and making progress at this conference on the following tasks:  

First, we hope to complete negotiations on the remaining issues regarding how to implement certain arrangements of the Paris Agreement. It has been nearly six years since the Paris Agreement was reached, but negotiations on various implementation guidelines have yet to be finalized. For example, the implementation arrangements of Article 6, mentioned by a friend from the media just now, still need to be negotiated. The international community has high expectations that the conference will fulfill this task. As the Paris Agreement begins to be fully implemented, the conference should encourage finalizing negotiations on the remaining core issues concerning the implementation guidelines of Article 6. This constitutes the basis and prerequisite for the full and effective implementation of the Paris Agreement by all parties and is an important symbol of maintaining the international community's trust in multilateral mechanisms.  

Second, we hope to make effective progress on issues of financial, technological and capacity-building assistance, which have long been of great concern to developing countries. At the previous conferences, developing nations were disappointed that the financing and adaptation issues that most concern them weren't taken seriously or effectively responded to. They also doubted whether the developed countries were adequately supportive in coping with climate change or merely deflecting emission reduction responsibilities to them. These issues have become one of the biggest obstacles to achieving steadfast progress in the multilateral process. As the Paris Agreement enters official implementation, these issues concern mutual political trust and the practical abilities of developing countries to enact climate action. This Conference of Parties should make arrangements in this regard and advance ambitions in mitigation, adaptation and providing support.

Third, we hope to highlight "implementation" at this conference. We actively call on all parties to earnestly implement the targets and translate them into policies and measures that can be adopted as well as concrete action to be taken. We should avoid turning the setting or raising of targets into empty rhetoric or accusations. For instance, developed countries should bridge the gap in providing $100 billion annually promised financial support as soon as possible – a major issue that concerns mutual trust between developing and developed countries. A number of developed countries, having not yet fulfilled existing promises, are still pushing for higher climate targets. However, all parties should realize that climate goals devoid of action are nothing but a castle in the air, and only through common action and full implementation of the targets and requirements of the Paris agreement, can we effectively deal with the crises and challenges brought by climate change. Thank you.  

Xing Huina:

If there are no other questions, today's briefing is hereby concluded. Thanks to our two speakers and friends from the media. Good bye!

Translated and edited by Zhang Liying, Wang Qian, Zhang Rui, Huang Shan, Qin Qi, Wang Wei, Dong Qingpei, Zhou Jing, Xiang Bin, Chen Xia, Xu Xiaoxuan, Li Huiru, David Ball, Drew Pittock, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Zhang Jiandong, executive vice president of the Beijing Organizing Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG) and vice mayor of the People's Government of Beijing Municipality

Li Yingchuan, vice minister of the General Administration of Sport

Wang Meimei, vice president of the Executive Board of the China Disabled Persons' Federation

Cui Shuqiang, member of the Standing Committee of the Communist Party of China (CPC) Beijing Municipal Committee and executive vice mayor of the People's Government of Beijing Municipality

Yan Pengcheng, vice governor of the People's Government of Hebei Province

Chairperson:

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

Date:

Oct. 27, 2021

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Tuesday marked the beginning of the 100-day countdown to the Olympic and Paralympic Winter Games Beijing 2022. Today, we are delighted to be joined by Mr. Zhang Jiandong, executive vice president of the Beijing Organizing Committee for the 2022 Olympic and Paralympic Winter Games (BOCOG) and vice mayor of the People's Government of Beijing Municipality; Mr. Li Yingchuan, vice minister of the General Administration of Sport; Ms. Wang Meimei, vice president of the Executive Board of the China Disabled Persons' Federation; Mr. Cui Shuqiang, member of the Standing Committee of the Communist Party of China (CPC) Beijing Municipal Committee and executive vice mayor of the People's Government of Beijing Municipality; and Mr. Yan Pengcheng, vice governor of the People's Government of Hebei Province. They will brief you on China's overall progress in preparations for the Olympic and Paralympic Winter Games Beijing 2022 and then take your questions. First, I'll give the floor to Mr. Zhang Jiandong.

Zhang Jiandong:

Friends from the media, good morning.

As we celebrated the 100-day countdown to Beijing 2022 on Tuesday, it's my pleasure to meet with you here and brief you on China's overall progress in preparations for the Olympic and Paralympic Winter Games Beijing 2022. First, on behalf of the BOCOG, I would like to express my heartfelt gratitude to friends from the media for their constant interest, support and help regarding Beijing 2022.

The Olympic and Paralympic Winter Games Beijing 2022 is a landmark event at a critical historic juncture in China. It is also the world's biggest comprehensive winter sports extravaganza. The Central Committee of the CPC has attached great importance to its preparation works. General Secretary Xi Jinping has held many special conferences to conduct research and make arrangements, inspected competition zones and issued key directives, all of which provide a fundamental basis for our organizing work. Under the direct instructions by the leading group overseeing Beijing 2022 preparations, the BOCOG has been fully implementing the concept of hosting the Games in a "green, sharing, open and clean" manner ever since the organizing work began. The BOCOG has also been working closely with the International Olympic Committee (IOC) and the International Paralympic Committee (IPC), and coordinating epidemic prevention and control with the preparation works for the Games. At present, all preparation works have been put in place.

First, the competition venues and infrastructure facilities have met the requirements of the Games. All 12 competition venues have been completed, are ready to host the Games and have been certified by the relevant international winter sports organizations. While being qualified to host the Games, newly-built venues such as the National Speed Skating Oval ("Ice Ribbon"), the National Snowmobile and Sled Center ("Snow Dragon") and the National Ski Jumping Center ("Snow Ruyi") have fully incorporated Chinese cultural elements and become eye-catching landmark buildings. Non-competition venues such as the three Winter Olympic Villages and the Main Media Center have started operation. Meanwhile, the high-speed railway line linking Beijing and Zhangjiakou, the Beijing-Chongli Expressway and other infrastructure facilities have been put into use. Barrier-free facilities and environments have been further improved. All of these have fully met the requirements of the Olympic and Paralympic Winter Games.

Second, all competition venues are running up to the operation standard of Games-time. Venues are the basic factors and the most important main bodies of the competition's operation. In 2020, a venue management team was established based on personnel from the BOCOG, local governments and venue operators. The team is in charge of each venue's competition organizing work, pandemic prevention and control, maintenance of facilities and other supporting services. This February and April, we successfully held winter sports test events for domestic athletes and carried out inspections of various work concerning the venues' operation. To further improve competition venues' Games-time operation and supporting capacities, we plan to hold 10 international test events and three international training week sessions from October to December. This will be an all-element test up to the standards of the Winter Games. It is estimated that some 2,000 overseas athletes and officials will participate in the test events, which will be held under a closed-loop management system. So far, five of these test events have already concluded — the Speed Skating China Open, Asian Open Figure Skating Trophy, ISU Short Track Speed Skating World Cup, and snowmobile and steel frame snowmobile time trials. The World Wheelchair Curling Championship 2021 is currently underway. Based on the competitions which have concluded, international sports organizations and participating athletes have spoken highly of the venues and the preparation work. We will continue to take a problem-oriented approach, summarize experiences at each competition, and earnestly improve our preparation work, so as to lay a sound foundation for the Games-time operation of the venues.

Third, efforts have been made to comprehensively carry out supporting services for the Games. Three competition zones are following the same standards regarding all sorts of preparation work. The BOCOG has signed contracts with nearly 100 hotels, formulated allocation plans for accommodations, and is currently working on hotel reservations. The BOCOG has finished selecting suppliers of food raw materials for the Games as well as catering service providers, and has drawn up menus which meet the different needs of all sorts of customers. The organizing committee has appointed 41 designated healthcare institutions and set up medical teams inside venues. It has also established a traffic command center during the Games to specify vehicle types and carry out traffic arrangements. A preliminary list of volunteers for the Games has been confirmed, and relevant training sessions are underway. The BOCOG has formulated and implemented an action plan on the sci-tech development of the Winter Games, proactively promoting the use of hydrogen fuel, 5G communication, cloud broadcasting, artificial intelligence and other emerging technologies. Many of these technologies are related to media and news reporting. For example, passenger coaches of the high-speed railway linking Beijing and Zhangjiakou have realized full coverage of the 5G network, and we will experience the convenience and efficiency brought about by these sci-tech innovation results during the Games.

Fourth, the BOCOG has been working to properly address the risks brought about by the COVID-19 pandemic. The pandemic is the biggest challenge facing Beijing 2022. To better prevent and control the pandemic, the BOCOG has established an international working group for pandemic prevention and control with the IOC and the World Health Organization (WHO). The BOCOG has also worked with the National Health Commission, Beijing Municipality and Hebei province to set up a special working group and expert team for domestic pandemic prevention and control. We remain committed to prioritizing the health and safety of all participants. By giving full play to international and domestic anti-pandemic systems, the BOCOG has formulated the general guiding principle of anti-pandemic efforts for the Winter Games, a general working plan, as well as a series of venue-specific pandemic countermeasures. A set of key anti-pandemic policies was released on Sept. 30. The BOCOG, the IOC and the IPC jointly published the first playbook for COVID-19 countermeasures for Beijing 2022 on Oct. 25. The playbook outlines six fundamental principles of simplified organizing efforts, remote prevention and control, vaccination, close-loop management, efficient handling, and the integration of prevention and control. The playbook also puts forward specific anti-pandemic measures. In the following days, we will hold conferences with various stakeholders and comprehensively explain specific anti-pandemic policies. There will also be press briefings for the media, which we welcome you to join.

Fifth, publicity campaigns and cultural activities are on the rise. The Winter Games are not only a sports extravaganza, but also a festival of culture. Since the organizing work began, the BOCOG has released the vision of Beijing 2022, its emblems, mascots, torch, sports pictograms, medals and relevant musical works. A documentary channel has been launched by Beijing Television, and a group of Winter Games cultural squares have been selected across the country. The BOCOG has held themed events such as the 1,000-day countdown, the one-year countdown and the 100-day countdown to Beijing 2022. The Beijing 2022 Olympic flame has been ignited and handed over to the BOCOG. A welcome ceremony was held at the Beijing Olympic Tower to release the torch relay plans and exhibit the Olympic flame. All of these cultural activities have added Chinese elements to the diversity of the Olympics. With the media coverage at home and abroad, a strong Winter Games atmosphere has been fostered. In the meantime, preparations for the opening ceremony of the Games are proceeding in an orderly manner.

Sixth, the BOCOG has made remarkable progress concerning sustainability and Olympic heritage. The BOCOG has been carrying out sustainability plans and carbon neutrality schemes, and has completed the ecological restoration of Yanqing and Zhangjiakou competition zones. All competition venues have realized full coverage of the green electricity network. The National Speed Skating Oval and another three venues have adopted a new type of carbon dioxide refrigerant, and all facilities of Beijing 2022 have achieved carbon neutrality. The BOCOG has fully implemented the strategic plan on Olympic heritage. Every competition venue has put forward their plan for reuse after the Games conclude. The Beijing International Olympic Academy has been established based on the Capital University of Physical Education and Sports. A Winter Olympic Park has been built inside the Shougang Park, a steel mill-turned cultural and sports complex in western Beijing. The post-Games naming of the Yanqing Olympic Park and Zhangjiakou-Chongli Olympic Park has been approved. Taking the opportunities brought about by the organizing work of the Winter Games, we have promoted the construction of winter sports venues. By proactively bringing winter sports into campuses and neighborhoods, we are getting closer to achieving the goal of getting 300 million Chinese people involved with winter sports. We have fully utilized the Winter Games' role in helping promote the coordinated development of the Beijing-Tianjin-Hebei region, so as to enhance transport facility connectivity, boost industrial complementarity, carry out joint environmental governance, and promote the joint construction and sharing of public services. We have worked to establish a tourism belt featuring sports culture between Beijing and Zhangjiakou, and fostered the transformation and high-quality development of the Shougang industrial complex, Yanqing and Zhangjiakou.

In the meantime, given China's institutional advantages of pooling resources for major events, the BOCOG has established a set of integrated and coordinated working mechanisms with the relevant central government departments, Beijing Municipality and Hebei province. A command center has been established and was officially put into operation on Oct. 15 before the international test events of Beijing 2022 kicked off. Command and dispatch works are being conducted on a daily basis. The command system will continue operating until the Games time and detect and solve any problems, in a bid to ensure an efficient and orderly Winter Games.

Friends from the media, starting from today, there are 99 days left before the Winter Games start. The Winter Olympic Villages will officially open to all participants from around the world on Jan. 27, 2022. The torch relay will be held on Feb. 2, kicking off the Winter Olympics time. We firmly believe that under the strong leadership of the CPC Central Committee and the great support of all Chinese people and the international society, the BOCOG will complete all its organizing tasks and deliver a simple, safe and splendid Winter Olympic Games to the world.

In conclusion, I'd like to welcome friends from the media to continue their interest and participation in the Olympic and Paralympic Winter Games Beijing 2022. Thank you.

Shou Xiaoli:

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

Xinhua:

Preparations for Beijing 2022 have moved into their final stages. What's happening with the training of Chinese athletes? What's the general situation, and are there any problems involving their training and preparation for the event? How will these problems be resolved? Thank you.

Li Yingchuan:

Thank you for your concern over Chinese athletes' training for the Winter Olympics. Hosting Beijing 2022 has sharpened Chinese competitiveness in ice and snow sports. In preparation for the event, Chinese athletes continue to train hard using innovative training methods scientifically. Together with improved training conditions, this has helped enhance Chinese competitive strength in ice and snow events. At present, a total of 480 athletes of the 29 national teams are undergoing intensive training for the snow and ice events in a bid to score at the upcoming Beijing 2022. We have focused at shoring up the weaknesses in Chinese athletes, coaches, and professional training facilities and established teams and trained athletes for all the 109 events of Beijing 2022, aiming for full participation in all the events of the Games.

When Beijing won the bid to host the 2022 Winter Olympics in 2015, around one-third of the 109 events had not been widely practiced in China. At the 2018 Pyeongchang Winter Olympics, China participated in roughly half of the total events. As the host of Beijing 2022, we want to qualify for all the events, which will be a historic breakthrough. However, the global outbreak of COVID-19 has hampered the Chinese national teams to go abroad for regular competitions and additional training, which resulting in losing of some important points in the lead up to the Winter Olympics. These points are the basic qualifying conditions required for participation in Beijing 2022. This is the most prominent problem we have encountered in preparing for Beijing 2022 competitions.

Meanwhile, as most of our teams have not participated in international competitions for a long time, they have had little opportunity to compete with their main rivals. This poses challenges in organizing targeted trainings for them, thus raising the bar for athletes in their on-the-spot performance and strain capacity. What have we done to counter these problems? We made full use of the domestic conditions for all the events to practice training. The updating of training facilities in particular, the advanced training venues, in Beijing Shougang Park, CRRC Beijing Erqi Vehicle Plant, and in places like Chengde, Chongde, and Laiyuan in Hebei province, guarantees beneficial training conditions for Chinese athletes. Despite the continuous spread of the COVID-19 pandemic, we have ensured that Chinese athletes for the ice and snow events get systematic and continuous training. In previous Winter Olympics, Chinese athletes traveled to some European and American countries for training. Now we can conduct science-based training in our well-equipped venues in Beijing and Hebei province without going abroad. We have also improved the level of "intelligent" training, enhancing the management of the whole training process by making full use of science-aided systems to precisely monitor the training, effectively helping sharpen the competitiveness of Chinese athletes. In the final 100 days before Beijing 2022, Chinese teams will make full use the high-tech training facilities to make their training more targeted and effective so as to bring out their best at the upcoming Olympics. Thank you.

Wang Meimei:

I'd like to add some more. The training requirements and practices of Chinese athletes in preparation for the Beijing Winter Paralympic Games are similar to what Mr. Li introduced just now. I will skip this part and introduce our measures in ensuring Chinese athletes' normal training for Beijing 2022 under the premise of normalized epidemic prevention and control.

The China Disabled Persons' Federation (CDPF) sees the athletes' training and preparations for Beijing 2022 as an important political task. We worked on epidemic control and athletes' training for the event simultaneously. We have all hoped Chinese athletes do well at the 2022 Beijing Winter Paralympics despite the COVID-19 outbreak. How to ensure their regular training and participation in the event against a backdrop of the pandemic is a major test for us. During the training for the 2022 Games, we have focused on implementing epidemic control measures. The CDPF issued a notice to guide provincial disabled persons' federations, training institutions, and sports teams to strictly implement the epidemic control requirements. We also called on disabled persons' federations in provinces and cities where the national teams are based to attach great importance to epidemic control of the national teams and step up efforts in inspection and services to coordinate the existing difficulties and problems. The national teams are under closed-loop management under the guidance of local disease control departments where these teams are based. We have customized epidemic control policy plans for each team member and clarified the division of responsibilities for the closed-loop management at training bases. Moreover, we have prepared sufficient materials for COVID-19 prevention, control, and disinfection, and improved the internal prevention and control responsibility system and management policies. Our staff have implemented all the measures and performed their respective functions. Chinese athletes have abided by the rules for self-protection from COVID-19.

Meanwhile, in compliance with epidemic prevention and control regulations of different competition divisions, we have participated in all the winter sports events of Experience Beijing, including test series in Paralympic alpine skiing, snowboarding, cross country skiing, Paralympic ice hockey, and wheelchair curling events. We seized a rare window period from April to early June to hold alpine skiing, snowboarding, cross-country skiing, biathlon, curling, and ice hockey events at the 11th National Games for Persons with Disabilities and the 8th National Special Olympic Games. We also supervised the organizing committees of those events to formulate and implement stricter plans on the basis of local policies in the fight against COVID-19, and clarified the responsibilities of the local governments, relevant departments, organizations, and individuals so as to have the participating athletes, coaches, and staff of the events abide by the regulations and requirements for the fight against COVID-19 and ensure the successful holding of those events.

At the Tokyo Paralympics, the Chinese Olympic delegation attached great importance to ensuring the health and safety of disabled athletes. We have formulated plans for the fight against COVID-19 with a clear division of responsibilities and strict reporting of the whereabouts of Chinese athletes. We supervised each team to abide by the requirements of the organizing committee of the Tokyo Paralympics and the Chinese Olympic delegation and achieved the goal of zero infection. We will draw on our epidemic control experience in Tokyo to prepare for and participate in the Beijing 2022 Paralympic Games. In particular, the practices for the fight against COVID-19 in the next three months will offer experience and reference for China's winter Paralympic delegation in their overseas visits for competitions.

As the training and preparations for the Beijing 2022 Winter Paralympics enter their final stages, we will continue the training and preparations in the context of regular epidemic prevention and control, strive to do well at Beijing 2022, and win honor for the country. We will make our due contribution to hosting a simple, safe, and wonderful winter Paralympics. Specifically, we will achieve this by:

First, we will adjust our plans as necessary. Under the leadership of the CDPF leading group for the 2022 Winter Paralympic Games, we will analyze the changes to the epidemic and further improve the work plan to ensure the training and participation in the event in an efficient and orderly manner.

Second, we will select top athletes for the event. We will beef up epidemic prevention and control along with athletes' training, and formulate sound training plans to ensure that Chinese athletes can complete their training to the final stage before the 2022 Winter Paralympic Games. We will hold international events in due time to offer more opportunities for athletes and sports teams to get international points.

Third, we will participate in international events. We will seek to compete in international events held in the next final months before the Games in a bid to increase the Chinese athletes' rankings and qualifying opportunities for more qualified participants.

Finally, we will strengthen the institutional guarantee. We will further improve supporting measures for athletes and enhance the supports and services for their teams and training bases. Thank you.

Asahi Shinbum:

The playbook for COVID-19 countermeasures for Beijing 2022 issued the day before yesterday stipulates that all Olympic participants arriving in China will be under closed-loop management. The Tokyo Olympics adopted the same practice but ended up having many violators. What measures will be adopted at the Beijing Winter Olympics to ensure compliance with the regulations in the fight against COVID-19? Thank you.

Zhang Jiandong:

Thank you for your question. We issued the playbook for COVID-19 countermeasures for Beijing 2022 the day before yesterday, drawing great attention from all sectors of society. Given that the global epidemic situation is still severe and complicated, in order to prevent the possible spread of COVID-19 and ensure the safety of Olympic participating parties, stakeholders, and the Chinese people, we worked with the IOC and the IPC, drawing on China's successful experience in the fight against COVID-19, and that of major international competitions held in the past and at present, and decided to conduct strict closed-loop management for the people involved in the 2022 Winter Olympics. The closed-loop management policy is one of the most distinctive measures for the fight against COVID-19 at the Winter Olympics. It is the premise for the Games to be held free of COVID-19.

One of the important characteristics of closed-loop management is that people within the loop, including the stakeholders involved in the Winter Olympics, the Chinese staff and volunteers, are subject to similar closed-loop management policy. They should be in strict separation from the communities. Under the closed-loop management, there won't be tight restrictions on the free movement of athletes and other participants, because they will be provided with dedicated vehicles for them to move freely from their places of residence to the venues, from venues to venues, and between three competition divisions. Moreover, the Olympic villages and other stakeholders within the loop, such as the contracted hotels for the media, will also be provided with a good experience through access to specialty restaurants, licensed retailers, cafes, and gyms, as well as some recreational facilities.

We have adopted such measures in the recent test events, which are basically the same as those in the playbook for COVID-19 countermeasures for Beijing 2022. In the big loop, athletes will be able to have relatively free movement, but they must abide by our related regulations and take dedicated transport vehicles. They will be not allowed to go out of the loop and make contact with communities.

I'd like to stress that the measures in the playbook are made in accordance with the latest scientific achievements and opinions of experts and in reference to the experience of other international events. We believe that these measures can mitigate the risks and impact of the pandemic. We hope all the people involved in the Winter Olympics and Paralympics can cooperate with us to abide by and implement these regulations. As for punitive measures, we will strictly implement related regulations on punishment. We are discussing the details with the IOC to hold those who violate regulations in the manual accountable with possible severe punishments, including warnings, temporary or permanent cancelation of registrations, temporary or permanent disqualification from competitions, ejection from competitions, and disqualification. Thank you.

China News Service:

High-quality urban operations are essential to the safe and smooth hosting of the Beijing Winter Olympics as scheduled. Could you give some information regarding this? Thank you.

Cui Shuqiang:

Thank you for the question. Beijing is making all-out efforts to ensure the smooth running of the Games, a top priority for the city now and for some time to come. We have set up headquarters on city operations composed of an office, 14 working groups, and a command center for the opening and closing ceremonies. The secretary of the CPC Beijing Municipal Committee is the commander of the headquarters, and the mayor of Beijing is an executive commander. To coordinate work in the three competition zones, the headquarters also host the governor of Hebei province as another executive commander. Preparations are proceeding in an orderly manner.

While continuing efforts in epidemic prevention and control, we have formed 142 specialized teams to ensure the smooth operation of urban utilities around the competition venues and five teams responsible for the management of utilities around the three competition zones. These two kinds of teams will work together with teams for venue management to promptly deal with emergencies and better ensure the smooth operation of urban utilities. In particular, we have strengthened supervision concerning workplace safety and conducted safety inspection and checks for potential safety hazards in and around key areas. We have developed a specialized winter energy plan to ensure the supply of water, electricity, gas, and heating in the venues. We have improved the mechanisms for timely response to extreme weather and effective urban sanitation, snow shoveling, and garbage removal. The highway linking Beijing and Zhangjiakou's Chongli district has been put into operation. Now it takes only 50 minutes from Beijing's urban area to Yanqing district via the highway and one and a half hours from Yanqing to Chongli. Efforts are also being made to construct 274.4 kilometers of lanes exclusive for Beijing 2022. We have been improving transportation services on key roads, in transit hubs and stations, and around the venues. We have developed policies for the management of public transportation demands to ensure both the smooth running of the event and normal urban operations. We have also formulated emergency plans in response to different situations such as extreme weather, damage to transportation facilities, and crowded rail transit.

In terms of environment and landscapes, we have been improving the environment in key areas and linking-up roads, stepping up comprehensive environmental management, and building landscapes that integrate the elements of the Games, the Spring Festival, and folk customs. These measures aim to create a warm and convivial atmosphere for the Games. In addition, we have been implementing tasks in eco-environmental conservation for Beijing 2022.

In terms of meteorological service, we have established a joint consultation mechanism with China Meteorological Administration and other relevant departments. Together, we will pay close attention to certain types of weather, such as strong winds, cold waves, smog, and snow; release information about extreme weather in a timely manner; and provide an effective emergency response. We have been implementing measures to ensure good air quality in Beijing. As of Oct. 26, the city's PM2.5 density was 32 micrograms per cubic meter, the lowest over the same period in history.

The preparations for Beijing 2022 have entered a critical sprint period. Beijing will work together with Hebei to ensure the safe and smooth hosting of the Games as scheduled. Thank you.

CCTV:

I would like to ask about the overall progress of the ongoing "Experience Beijing" test events. In particular, how is the feedback from all parties? What's the goal of these test events? And what are the gaps between the current state and the Games-time standard? Thanks.

Zhang Jiandong:

Thanks for your attention. Before the Winter Olympics and Paralympics can officially start, a series of test events or test activities must take place. This is a requirement of the IOC and the IPC and is also standard practice for previous Games. The series of "Experience Beijing" test events started in October and will last until the end of December, including 10 international competitions, three training weeks and two domestic trials. With the coordinated efforts of all parties – especially the hard work of venue teams and the organizing committees of each competition zone – everything has followed a step-by-step process, and all events have gone smoothly as scheduled. Among these events, the Speed Skating China Open, the Asian Figure Skating Open, the Short Track Speed Skating World Cup and time trials in bobsled and skeleton were successfully concluded. The feedback from athletes, international technical officials and individual sports federations has been overwhelmingly positive in terms of venues and facilities, epidemic prevention and control measures, event organization, as well as operation support.

The Wheelchair Curling World Championship is now underway, and several other events will start soon, such as the Luge World Cup. Of course, the luge training week will be held first, followed by the World Cup. There will also be snowboarding and free-ski cross World Cup legs in Zhangjiakou Competition Zone, as well as Continental Cup events for ski jumping and Nordic combined. Preparations for the remaining events are well underway. These test events offer a final opportunity for a field test before the Olympic Winter Games. It is hugely important that everyone accumulates the necessary experience in Games-time epidemic prevention and operation so as to arrange for the smooth running of the Games as scheduled.

The test events are run by international individual sports organizations with special regulations, which results in different characteristics between the test events and the Olympic Winter Games. However, we have carried out comprehensive tests for the Games as scheduled to analyze every element of preparations, run the operating mechanisms and accumulate more experience.

The goals of the test events you just asked about mainly concern three aspects: first, anti-epidemic measures, fields and facilities; second, event organization and venue operation; third, event services and peripheral support, including the command and dispatch system. These are the priorities for the test events and the goals to be achieved. As such, we focus on the following tasks:

First, we conduct a thorough examination of anti-epidemic measures and ensure strict implementation of those measures. More than 2,000 overseas athletes, team officials, international technical officials and scoring professionals are participating in the test events. Therefore, we have implemented measures such as pre-departure prevention and control, vaccination, and nucleic acid testing for arrivals to China. In addition, a closed-loop management policy has been strictly enforced during these test events, using the same management method as the Olympic Winter Games. We will adhere to a system of "no overlapping of partitions, no crossing of streamlines, strict control of meetings, and no cross-boundary of personnel." These four phrases indicate that the closed-loop management within venues, especially in the design of streamlines, aims to mitigate interactions between people. We are dealing with these details to examine anti-epidemic measures.

Second, we work hard to organize the events and improve operational support capabilities. As I mentioned earlier, one of the main goals of the test events is to check whether the facilities and venue equipment can meet Games-time operation standards, including whether the quality of the ice surface and snow track can meet the requirements of individual sports organizations. The functionality of timing and scoring systems, TV broadcasts, sports shows, award presentations, interviews and doping tests are likewise interconnected. So the operation support for venues and facilities is another important aspect of our examination. Through such tests, we can discover as many existing problems and weak links as possible.

Third, we provide elaborate services to improve the participant experience. We have taken competitions and operations into consideration when providing athletes and various stakeholders with a better experience, especially under closed-loop management during the test events. In this regard, we have made arrangements to take care of participants and service staff, striving to provide comfortable, convenient and safe services, so as to ensure that problems and needs are heard, the progress of coordination and handling is followed up, and the resolution of problems are checked. Cai Qi, secretary of the CPC Beijing Municipal Committee has described this as the Olympic Winter Games version of "dealing with a complaint when receiving it," or handling complaints in a timely manner. The test events have employed that method, and staff at all venues have heeded the views of all participants to make further improvements.

In short, we have identified some problems that need to be further optimized and improved through the first few test events. We also conduct reviews and assessments every day to discover problems and solve them one-by-one, and continuously enhance our capacity to organize the Games. Please pay more attention and offer help. Thanks.

China Daily:

My question goes to Mr. Yan from Hebei province. We all know that Zhangjiakou city in Hebei province, as a competition zone of the Olympic Winter Games, will host most of the snow competitions, and has both reconstructed and built new venue complexes such as the Genting and the Guyangshu clusters. As the international test events are just around the corner, we would like to learn about how the preparations are going for these venues? And what are the plans and arrangements for post-Games use of the newly-built venues? Thanks.

Yan Pengcheng:

Thanks for the media attention to the preparations of Zhangjiakou Competition Zone. Beijing and Zhangjiakou will co-host the 24th Olympic and Paralympic Winter Games, which represents the trust in, and care for, Hebei province of the CPC Central Committee with Comrade Xi Jinping at its core, bringing rare and significant development opportunities. The Hebei provincial Party committee and government will firmly implement the guiding principles of General Secretary Xi Jinping's important instructions on the Winter Olympics and will regard the smooth hosting of the Olympic Winter Games as a major political task, deploying various key tasks for event organization and bolstering it with efforts from the whole province.

As the journalist mentioned, Zhangjiakou, being one of the three competition zones for the Beijing 2022 Olympic and Paralympic Winter Games, will hold a majority of the snow events. In Zhangjiakou, athletes will compete for 51 gold medals of the Olympics Winter Games and 46 gold medals of the Paralympic Winter Games. We have built four competition venues and five non-competition venues in Zhangjiakou. The four competition venues are the National Ski Jumping Center, the National Cross-Country Skiing Center, the National Biathlon Center, and the Genting Snow Park. The five non-competition venues are the Winter Olympic Village, the Main Press Center, the International Broadcasting Center, the Awards Plaza, and the Uniform and Registration Sub-Center. The construction of venues with high standards and high quality constitutes a top priority in the preparation of the Winter Games. Here, I'd like to share with you some information from the following three aspects.

First, the venues in Zhangjiakou boast attractive highlights. All the venues here are concentrated in the core region of Taizicheng area in Chongli district. While building the venues, we earnestly followed the three concepts of athlete-orientation, sustainable development, and frugality in running the Games, adhered to the overall plan and international standards, organized top teams at home and abroad, and formulated a series of scientific plans for the construction of venues and support facilities. By doing this, we strive to develop high-quality, eco-friendly, and corruption-free projects with cultural appeal. We planned and designed the construction of major venues as a whole. For example, we built a three-kilometer-long circular path connecting the National Ski Jumping Center, the National Cross-Country Skiing Center, and the National Biathlon Center. The image of the circular path being covered with snow in winter has given it the nickname "Ice Jade Ring." The National Ski Jumping Center, nicknamed "Snow Ruyi," not only has the longest ski jumping track in the world but also perfectly resembles the shape of a "Ruyi," a traditional Chinese ornament symbolizing good luck. In this way, the center can showcase Chinese culture and tell Chinese stories to the world with its magnificent and elegant curves.

Second, the major venues have been awarded international certification. By the end of last year, Zhangjiakou competition zone had fulfilled all the construction tasks for 76 events. In August this year, the Winter Olympic Village became ready to receive dwellers. Not long ago, experts of sports unions and federations for winter events conducted the final inspection and awarded certifications to the competition venues and training tracks in Zhangjiakou competition zone. They gave full recognition to the quality of the venues and believed that all the venues had met the competition requirements. In particular, "Snow Ruyi," "Ice Jade Ring," and other landmark structures were spoken of highly by the International Olympic Committee and winter sports unions and federations, who held the opinion that the National Ski Jumping Center is currently a unique ski jumping venue with the most creative design in the world and is one of the world's most spectacular venues. They also believed that the Genting Snow Park is one of the world's best venues for snowboarding and freestyle skiing.

Third, we have considered and made arrangements for the post-Games use of the venues, an issue which has always been a focus of attention among all parties. In order to give full play to the post-Games functions of the Zhangjiakou venues, we have studied and developed special schemes. The overall consideration is to fully leverage the traffic and location advantages of the Taizicheng area where the venues are situated; take advantage of favorable conditions, including good climate; and actively promote the market-centered operation of the venues. By hosting various kinds of major sports events, carrying out extensive mass snow and ice cultural and sports activities, we aim to build Zhangjiakou competition zone into an integrated snow and ice entertainment center and summer resort that can operate 24/7 all year round.

For instance, after the Games, the Genting Snow Park will be developed into a mountain resort combining services in sports, conferences, leisure, and holiday activities, with a focus on snow and ice sports as well as mountain resort services. The National Ski Jumping Center will be transformed into a characteristic business tourism area, integrating high-end meetings and leisure experiences. The National Cross-Country Ski Center will be turned into a mountain park, where snow and ice cultural and sports activities are organized in both winter and summer. The National Biathlon Center will be built into a ski training and winter sports experience base suitable for young people, while serving as a site for specific national sports training and events holding.

We welcome friends from the media to visit the Zhangjiakou competition zone more for reporting and sightseeing. Thank you.

Beijing Youth Daily:

My question is about the Paralympic Winter Games. China participated in the Paralympic Winter Games for the first time in 2002. Nowadays, the number of Paralympic Winter Games athletes in China has increased from less than 50 to more than 1,000, and we have won many international championships on many events. How can the Paralympic Winter Games promote the participation of people with disabilities in snow and ice sports in China?How to mobilize more people with disabilities to answer the call of "engaging 300 million Chinese people with sport on snow and ice?" Thank you. 

Wang Meimei:

Thank you for your attention to the development of snow and ice sports for persons with disabilities. This is a very good question and I'll be happy to answer it. Well, with the popularity and development of the Paralympic Winter Games events in China, snow and ice sports for people with disabilities have made great progress since Beijing won the bid for Beijing 2022 Olympic and Paralympic Winter Games. After winning the bid, China held snow and ice sports season activities for people with disabilities for five consecutive years, beginning 2016. The number of places for organizing such activities increased from 14 to 31, constantly expanding the coverage regarding both places and participants. Advanced by diverse parties and drawing much social attention, such activities have enjoyed a higher level, more scientific structure, and richer content with innovative and interesting events. With the popularization of winter sports for persons with disabilities, overall, the ice and snow sports for this group of people are developing very fast. Every year, more than 300,000 people with disabilities participate in snow and ice sports season activities, contributing to the vision proposed by General Secretary Xi Jinping of "engaging 300 million Chinese people with sport on snow and ice."

During the snow and ice season activities, we undertook leading national activities in Beijing and Hebei province, taking Heilongjiang, Jilin, Liaoning, and Inner Mongolia as the main sites to conduct activities. We have also expanded to eastern and southern China, including provinces of Jiangsu, Zhejiang, and Guangdong to host events. At the same time, we also mobilized Shaanxi province, the Xinjiang Uygur Autonomous Region, and other western regions to participate. We relied on the five special associations (the China Association for Sight-Impaired Persons; China Association for Hearing-Impaired Persons; China Association for Persons with Physical Disabilities; China Association for Persons with Intellectual Disabilities and Their Relatives; China Association for Mentally Disabled Persons and Their Relatives) of China Disabled Persons Federation to actively carry out the snow and ice sports activities for the people with disabilities.

With joint participation and promotion, many activities featuring snow and ice were held according to local conditions. For example, we carried out experience activities for the Paralympic Winter Games and conducted mass snow and ice competitions, including those on synthetic ice and snow. We also organized snow and ice carnivals and summer camps. Since the outbreak of the COVID-19 pandemic, we have carried out many online winter sports rehabilitation and fitness programs to guide people with disabilities and engage them with diversified activities. Meanwhile, we created and promoted many activities popular among persons with disabilities, such as mini-skiing, floor curling, and floor hockey. In order to further popularize and develop snow and ice sports for people with disabilities, we have compiled some guidance manuals on winter fitness programs for disabled persons and made relevant videos, and then distributed them to the communities and grassroots units. In this way, we can drive and promote more disabled people to participate in the whole winter sports activities and enjoy the joy brought by snow and ice.

The Beijing 2022 Paralympic Winter Games are approaching, and we will hold the sixth snow and ice event for people with disabilities, which is expected to further promote the participation of disabled persons in the Beijing 2022 Olympic and Paralympic Winter Games and create a favorable atmosphere for making the two games a big success. Thank you.

Southern Metropolis Daily：

How is the construction of venues going for the Beijing Winter Olympics and the supporting facilities coming along? Thank you.

Cui Shuqiang:

Thanks for your attention. According to the requirements of the Beijing 2022 Organizing Committee, a total of 39 venues are to be used for the 2022 Olympic and Paralympic Winter Games, of which the 30 in the Beijing and Yanqing competition zones are coordinated and constructed by the Beijing Municipal Government. So far, 28 of the 30 projects, including competition venues and the Winter Olympic Village, have been completed and undergone test events. The remaining two projects, the National Stadium and the Awards Plaza, are currently being renovated or constructed. In addition, the construction of the 33 temporary facilities for the Winter Olympic and Paralympic Games are proceeding as planned and will be completed by the end of December this year.

When Beijing bid for the 2022 Olympic and Paralympic Winter Games, it committed to providing a barrier-free environment, signifying an important part of the preparations for the Winter Olympics. Through our continuous efforts, we have significantly improved the normative, applicable and systematic level of the barrier-free environment in Beijing. The core areas of the city and the competition service areas for the Games have all become barrier-free. Citywide, we have improved 289,000 barrier-free facilities and built 100 barrier-free demonstration blocks, 100 "15-minute convenient life circles" and more than 900 barrier-free demonstration projects. During the test events, we received feedbacks from people who tried out the barrier-free facilities and will continue to make improvements accordingly. However, the feedbacks have generally been satisfactory. Our goal is to build the venues well and ensure the success of both the Winter Olympics and Paralympics. Thank you.

The Straits Times:

I have two questions. First, given how stringent your COVID-19 management of the Games is going to be, how much resources will be deployed? Will you pool resources from elsewhere of the country? Is this going to cause gaps in your COVID-19 management in other parts of the country? How will you ensure the Games are not disrupted by positive cases? My second question is about the open and closing ceremonies. Who and how many people will get to attend? And how will they be managed?

Zhang Jiandong:

Thank you. Your question is extensive. I will answer it in two parts. In terms of anti-COVID-19 measures, indeed, epidemic prevention and control is the biggest challenge for us. We should say that without a guarantee of safety, there would be no success in the Olympic Games. We have always put epidemic prevention and control at the top of our priorities.

During the 2022 Olympic and Paralympic Winter Games, we will adopt a series of comprehensive measures to minimize the risk of imported cases and ensure the health of all participants of the Games and the health of the people of the host cities. Our goal is to ensure the Beijing Winter Olympics and Paralympics run safely and smoothly as scheduled. After consulting with the IOC and the IPC and extensively soliciting opinions of all stakeholders, we have formulated and released the first edition of a playbook for COVID-19 countermeasures. The primary purpose of the playbook is to ensure the safety and health of all athletes, participants and the Chinese public.

The playbook mainly focuses on the following aspects: First, we will strengthen remote monitoring measures to effectively reduce the risk of imported cases, including self-health monitoring for at least 14 days prior to departure for China and conducting COVID-19 nucleic acid tests as required. Second, we will implement strict vaccination policies. Third, we will implement strict closed-loop management upon arrival in China. Fourth, we will implement regular prevention and control measures throughout the Games. We have incorporated epidemic prevention and control for the Games into the local government's anti- epidemic system, which is an important feature. Cai Qi, secretary of the Beijing Municipal Committee of the Communist Party of China, is also president of the BOCOG. He directs the anti-epidemic work of both Beijing and the Games. The epidemic prevention and control of venues and activities related to the Games have been integrated into the unified anti-epidemic management of the city for unified deployment of resources. All this will help provide a strong guarantee of safety for the Game and host city. Please be rest assured about that.

Next, I will brief you on the opening and closing ceremonies. The opening and closing ceremonies of the Games attract much attention at home and abroad. Adhering to the guiding principles of "simplicity, safety and excellence," we are preparing for the opening ceremony. The Beijing Winter Olympic Organizing Committee has established an opening and closing ceremonies department, as well as a cast team consisting of members of different ages. Through hard work and cooperation with the IOC and the IPC, a creative plan has been approved. Production and rehearsals are being carried out in an orderly manner. As we know, the opening ceremony will be held at the National Stadium, or Bird's Nest. So, we set up an operation team at the Bird's Nest to organize and coordinate the opening and closing ceremonies. We will share specific information about the opening ceremony with friends from the media at a later time. I hope you will stay tuned. Thank you.

Cover News:

During preparations for the Winter Olympic and Paralympic Games, General Secretary Xi Jinping has given important instructions on hosting a "Green Olympics." He stressed that we should prioritize ecological conservation, conserve resources and stick to an environment-friendly approach to make "beautiful China" a defining feature for the Games. What are the specific measures that Zhangjiakou city has taken to ensure a "Green Olympics". Thank you.

Yan Pengcheng:

Thank you for your interest in the implementation of "green Olympics" in the Zhangjiakou Competition Zone. General Secretary Xi Jinping has repeatedly stressed the commitment to hosting a green, sharing, open, and clean Olympics. We have always kept General Secretary Xi Jinping's remarks firmly in mind. Under the strong leadership of the Central Committee of the CPC and the State Council, and the unified command of the Beijing Organizing Committee for the 2022 Winter Olympic and Paralympic Winter Games, we are carrying out all of the preparation work in a meticulous manner. As the Capital Water Source Conservation Functional Zone and the Ecological Environmental Supporting Zone, we are attaching more importance to the implementation of "green Olympics" in Zhangjiakou. Over the past few years, we have resolutely implemented Xi Jinping Thought on Ecological Civilization, and demonstrated the concept of "green Olympics" through the whole process and all aspects of the preparation for the Winter Olympics. In doing so, we have focused on the following five aspects:

First, green venues. All construction work has been carried out to a high standard and high quality. We have protected the structures and landscapes of the mountains to the greatest extent, decreased the negative impact on the environment and reduced resource waste. We have arranged and built low-energy venues and "sponge competition zones." Four competition venues have been recognized as three-star green snow sports venues. The Zhangjiakou Olympic Village has also been recognized as a three-star green building.

Second, green ecology. The city of Zhangjiakou has continued to carry out campaigns to keep skies blue, waters clear, city green, and lands pollution-free. Since the successful bid for the Games, the city has added 13.68 million mu of afforestation. The current average density of PM2.5 particles stands at 29 micrograms per cubic meter, while that of Chongli district 16 micrograms per cubic meter. The Bashang region has taken the lead in striking a balance between underground water exploitation and replenishment. The safe utilization rate of contaminated soil has reached 100%.

Third, green industries. We have vigorously promoted the development of such industries as ice and snow gear manufacturing, ice and snow tourism, big data, high-tech equipment manufacturing, and modern services. The proportion of high energy-consumption industries in industrial enterprises above designated size dropped by 7.2 percentage points compared to 2015, the initial year of the preparation work. The proportion of the added value of high-tech industries in industrial enterprises above designated size has increased by 20 percentage points over five years. In particular, the Ice and Snow Sports Equipment Industrial Park has been honored as a national demonstration base for new industrial industries. The "cold resources" have gradually helped heat up the economy.

Fourth, green energy. We have actively promoted the development of wind power generation and photovoltaic power generation. The Zhangbei renewable energy flexible DC grid test and demonstration project officially entered into operation, and can deliver 14.1 billion kilowatt-hours of clean electricity to the Beijing area every year and ensure a 100% clean energy power supply for the Zhangjiakou Competition Zone during the Winter Olympics.

Fifth, green transport. Zhangjiakou has strived to become a national transit metropolis and preferentially developed demonstration city for public transportation. The city has added over 800 clean energy buses, upgraded a total of 48 bus routes, and added 68 bus routes. Bus stops at intervals of 500 meters have covered more than 90% of the downtown area.

We firmly believe that with the implementation of the "green Olympics" concept, the development of the construction of the Capital Water Source Conservation Functional Zone and the Ecological Environmental Supporting Zone, and the further improvement of the Beijing-Zhangjiakou eco-environment joint prevention and control mechanism, the ecological environment of Zhangjiakou and even the entire Beijing-Tianjin-Hebei region will continue improving and become better and better. Thank you.

Shou Xiaoli:

Now for the last question.

Wenweipo:

In its bid to host the 2022 Winter Olympic Games, China pledged to get 300 million people involved in winter sports. How has the popularization of winter sports in China progressed? Thank you.

Li Yingchuan:

Thank you for your question. Getting 300 million people involved in winter sports is a promise made by General Secretary Xi Jinping on behalf of the Chinese government. It has always been of great concern. As a country with a vast territory and diverse natural conditions, winter sports have been carried out mainly in the areas with abundant snow and ice resources, such as northeastern, northern, and northwestern China. After the successful bid for the 2022 Winter Olympic Games, all parts of the country have carried out a set of public winter sports in line with local conditions under the goal of getting 300 million people involved in winter sports set by General Secretary Xi Jinping. The northern parts of China have a long tradition of winter sports and abundant snow resources, while southern China has a lack of snow and ice. However, with the development in the economy, society, and science and technologies, the increasingly mature ice-making technology has allowed winter sports to go nationwide. For example, with the booming development of indoor ice sports in some southern cities. Noticeably, ecological snow-making technologies have prompted the construction of outdoor ski resorts in southern cities and regions with favorable conditions. For example, there are numerous indoor ice rinks in Hainan province. Additionally, many places have adopted new technologies, new materials and new skills, represented by VR, AR, dry ski slopes, liquid synthetic ice, inflatable domes, detachable devices and so on. It's fair to say that more and more citizens have stepped onto ice rinks and entered ski resorts, and are fully enjoying the health benefits and joy brought by winter sports.

Winter sports have become leisurely and fashionable sports among the public, especially young people. They have also become a lifestyle for Chinese families. Therefore, those involved in winter sports are spread all over the country. Despite the vigorous development, our industrial foundation is still vulnerable compared to countries traditionally associated with winter sports. However, as the world's second largest economy, China has made noticeable achievements in its technological strength and innovative capacity. Therefore, China's comprehensive strength is fully capable of supporting the leapfrog development of winter sports. Concentrating on the goal of getting 300 million people involved in winter sports, from the central government to local governments, the country has formed a pattern featuring joint participation among multiple departments and synergetic development among the whole of society. We believe that under the joint efforts of people from all walks of life, we are fully capable of achieving the goal of getting 300 million people involved in winter sports, delivering the development fruits of winter sports to the public, and making active contributions to the development of international Olympic sports. Thank you.

Shou Xiaoli:

The SCIO will hold a series of press conferences on the 2022 Olympic and Paralympic Winter Games. We welcome all friends from the media to participate in them. That is all for today's press conference. Thank you to the spokespersons and friends from the media. Goodbye.

Translated and edited by Zhang Liying, Wang Qian, Zhu Bochen, Ma Yujia, Duan Yaying, Li Huiru, Zhang Junmian, Zheng Chengqiong, Huang Shan, He Shan, Qin Qi, Xu Xiaoxuan, Yuan Fang, Dong Qingpei, David Ball, Drew Pittock, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Luo Zhaohui, chairman of the China International Development Cooperation Agency (CIDCA)

Zhang Maoyu, vice chairman of the CIDCA

Zhou Liujun, vice chairman of the CIDCA

Deng Boqing, vice chairman of the CIDCA

Chairperson:

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

Date:

Oct. 26, 2021

Shou Xiaoli:

Good morning, ladies and gentlemen. Welcome to this press conference held by the State Council Information Office (SCIO). Today we are very happy to be joined by Mr. Luo Zhaohui, chairman of the China International Development Cooperation Agency (CIDCA), and the agency's vice chairmen, Mr. Zhang Maoyu, Mr. Zhou Liujun and Mr. Deng Boqing, who will introduce China's COVID-19 assistance and international development cooperation, and answer any questions you have. Next, I'll give the floor to Mr. Luo Zhaohui. 

Luo Zhaohui:

Good morning, friends from the media. It is a pleasure to meet you all. This is the first press conference held by the CIDCA since its establishment more than three years ago. I would like to thank you for your long-term interest in China's foreign aid and for your support of our agency's work. I would also like to thank the SCIO for inviting us to participate in today's press conference.

Yesterday, a conference marking the 50th anniversary of the restoration of the People's Republic of China's lawful seat in the United Nations was held in the Great Hall of the People. President Xi Jinping attended the conference and delivered an important speech. What you may not know is that our foreign aid work played a unique role in this historic event. For U.N. General Assembly Resolution 2758, 22 of the 23 co-sponsors are our recipient countries. This is the epitome and pride of China's foreign aid cause from "yesterday."

At present, the COVID-19 pandemic continues to spread, the world economy is struggling to recover and sustainable global development is facing severe challenges. Under the personal command and deployment of President Xi Jinping, we have not only achieved the "double lead" in fighting the pandemic and in economic recovery, but also carried out the longest period and widest scope of emergency humanitarian aid operation since the founding of the People's Republic of China (PRC). Last year, China provided a large number of anti-pandemic materials such as protective suits, masks and ventilators to 150 countries and 13 international organizations. Since the beginning of this year, we have provided more than 1.5 billion doses of vaccines to 106 countries and four international organizations, which have played an important role in controlling the pandemic and leading the anti-pandemic cooperation. This is the rainbow and glory of our foreign aid cause for "today."

Our foreign aid cause has gone through 71 years of glorious history from 1950 to the present day, carrying a strong friendship and bearing fruitful results. From the Tanzania-Zambia Railway to the Karakoram Highway, from hybrid rice to Juncao planting, from artemisinin to COVID-19 vaccines, these are all amazing business cards and witnesses of China's aid. You can see "China Aid" written on the packaging of donated vaccines — this is the very business card of China. The foreign aid work is a glorious chapter in the 100-year history of the Communist Party of China (CPC). So far, China has provided various types of aid to more than 160 countries, including implementing thousands of complete projects and material aid projects, carrying out tens of thousands of technical cooperation and human resource development projects, and offering over 400,000 training opportunities for various types of personnel from developing countries. These achievements are inseparable from the hard work of our generations of foreign aid workers, and the continuous struggle of various departments on our foreign aid front.

Since the 18th CPC National Congress, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China's foreign aid and international development cooperation have opened up new prospects and made new achievements on the existing basis.

China continues to innovate its ideas on international development cooperation. With a big heart and a global vision, President Xi Jinping put forward the important concept of a community with a shared future for mankind, the Belt and Road Initiative, as well as the principle of upholding justice while pursuing shared interests, the principles of sincerity, real results, affinity, good faith, and the principles of amity, sincerity, mutual benefits and inclusiveness. These ideas have inherited and carried forward Marxist internationalism and humanitarian spirit, and at the same time have combined with such traditional Chinese concepts as "making the world better if you're capable" and "creating a world of harmony and unity." Our foreign aid work is aimed at realizing these important thoughts and practicing these important ideas.

China's international development cooperation mechanism is improving day by day. More than three years ago, the Chinese government specially established the CIDCA to provide an important mechanism guarantee for promoting the quality and upgrading of international development cooperation. We also set up the South-South Cooperation Assistance Fund and established the Institute of South-South Cooperation and Development to help developing countries enhance their capacity for independent development.

China's contribution to international development cooperation has expanded significantly. We have contributed "Chinese solutions," "Chinese wisdom" and "Chinese power" to solve the world's development problems. In the face of endless global challenges and disasters, "Chinese aid" has never been absent. The focus of our aid is on vaccines and anti-pandemic supplies, while routine aid has not stopped, especially for overseas projects involving people's livelihoods. Taking into account the continuity of these projects and the urgent needs of recipient countries, we have overcome many difficulties and continued our aid. Of course, we did not relax for a moment regarding project safety, supervision and anti-corruption issues. We also had to change some foreign aid training projects from in-person to a combination of online and offline methods.

China is still a developing country. We attach great importance to and actively conduct foreign aid, first of all in order to practice Xi Jinping Thought on Diplomacy. Human beings share the same Earth, depend on each other and share a common future. President Xi Jinping creatively put forward the vision of building a community with a shared future for mankind. Our foreign aid work is a great practice toward building a community with a shared future for mankind, and is also the lofty embodiment of the CPC's original mission in the cause of human progress.

Second, our work is in order to consolidate and deepen friendly cooperation with other developing countries, expand our circle of friends, and seek common prosperity and development. The current international situation is not peaceful, and a Cold War mentality and ideological disputes have never ceased. As a responsible major country, it is increasingly important and urgent for China to carry out foreign aid, lead South-South cooperation, build consensus on development and practice true multilateralism.

Third, our work is in order to serve domestic economic development and deepen reform and opening-up. While helping recipient countries develop their economies and improve people's livelihoods, our foreign aid effectively drives China's high-quality products, advanced technologies and industry standards to "go global." Foreign aid also plays a very important role in stimulating trade and investment cooperation between China and recipient countries, deepening China's all-round exchanges with other countries, and creating a good external environment for China's economic and social development.

Fourth, our work is in order to give back to the international community for their good deeds. As the saying goes, favors should be returned many times more. We all know from studying the Party's history that the Communist International provided selfless aid in the founding, establishment and development of the CPC. Some important foreign friends such as Henk Sneevliet, Norman Bethune and Dwarkanath Kotnis came to China from afar. Both the construction of the PRC and its reform and opening-up have received great support from the international community. When the Wenchuan Earthquake occurred in 2008, I was the Chinese ambassador to Pakistan. Friends from the Pakistani military proposed sending a medical team to Wenchuan. I explained that the conditions for receiving people in that area were limited. They said that it didn't matter, they could even just drink water and eat vegetables and tree leaves, but they wanted to help their "Chinese brothers." As the saying goes, roses given, fragrance in hand. At the same time, China has provided aid to other countries without asking for anything in return — this has been recognized with high praise and help from the international community. At a session of the U.N. Human Rights Council this year, the West carried out unreasonable attacks on China about issues related to Xinjiang and Hong Kong, and more than 90 countries spoke out for us from a sense of justice. This is a vivid example.

Foreign aid needs to handle the dialectical relationship between "giving roses" and "leaving fragrance." It is seriously worth thinking about whether to give or not give, what to give, when to give, whether one is deliberately planting flowers to enjoy the fragrance, or planting them but then unintentionally enjoying the fragrance. When providing foreign aid, China has done what it can and has done its best. This has achieved multiple political, diplomatic, economic and social benefits, and has played an irreplaceable role in the process of the Chinese nation standing up, getting better-off and becoming stronger.

China's foreign aid and international development cooperation will continue to be guided by Xi Jinping Thought on Diplomacy, with the purpose of promoting the building of a community with a shared future for mankind, with the principle of upholding justice while pursuing shared interests, and the mission of serving China's overall diplomatic policy and jointly building the Belt and Road Initiative. It will continue to take into account both bilateral and multilateral relationships, combine soft and hard aid, coordinate grant assistance and concessional loan, focus on project implementation, supervision and evaluation, and continue to create new glories in the cause of foreign aid.

On the basis of traditional bilateral assistance, we have increased exchanges and cooperation with Western countries and international organizations such as the U.N., and actively explored multilateral and tripartite cooperation. While implementing complete projects, we have focused on teaching over giving, promoting personnel training and sharing of governance experience, and use a combination of grant assistance and concessional loans to reduce project financing costs. We have strengthened the supervision of the entire chain of projects, prevented corruption risks, improved project quality, and focused on post-project evaluation to ensure the sustainable development of foreign aid.

Thank you everyone. Next, my colleagues and I will answer your questions.

Shou Xiaoli:

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

CCTV:

We all know that China first began providing foreign aid to friendly neighboring countries. What assistance did China provide those countries in their fight against COVID-19? What has been achieved? Thank you.

Luo Zhaohui:

That's a very good question, thank you. China started providing foreign aid to neighboring countries 71 years ago. In 1950, a Chinese military advisory group was sent to Vietnam to assist the country in its fight against the French invasion, and the Chinese People's Volunteers (CPV) army entered the Democratic People's Republic of Korea (DPRK) in the war to resist U.S. aggression and aid Korea. 

During the past 71 years, the "neighborhood" has always been the top priority for China's diplomacy. It is often said that it is difficult for China to remain peaceful and secure unless its neighbors are secure. Neighborhood is the foundation for our livelihood, development and prosperity, and our privileged direction in building a community with a shared future for mankind. Since the outbreak of COVID-19 last year, neighboring countries have lent helping hands to China, a testament to the verses "Miles apart but close at heart." The prime minister of Cambodia and Pakistan's president paid special visits to China, and Mongolian president donated 30,000 sheep as a token of support to Wuhan city. A 10-year-old Mongolian child studying in China donated 999 yuan ($156) to Wuhan city and another two areas of China which were relatively seriously affected, expressing support for China's COVID-19 epidemic fight. We are all deeply moved by the kindness. There is a Chinese saying: "A favor of a drop of water should be repaid with a surging spring." Since the outbreak of the pandemic, the international community, including neighboring countries, has provided valuable support, and of course, we should return the favor. Thanks to the leadership of President Xi Jinping, and under the coordination of the Joint Prevention and Control Mechanism of the State Council and the direct command of State Councilor and Foreign Minister Wang Yi, China's Ministry of Foreign Affairs, Ministry of Commerce and the National Health Commission have proactively coordinated and launched timely humanitarian aid. We have done the following work.

First, meeting urgent needs. Emergency relief demands urgent action. Although providing foreign aid has its own procedures, we have to handle urgent and difficult cases with creative thinking and special measures. At the end of April, South and Southeast Asia saw a resurgence of COVID-19 cases due to the Delta variant. China launched an emergency plan to support neighboring countries fighting the pandemic. To overcome difficulties such as shortages of goods and production schedules, we donated emergency supplies including oxygen cylinders, as well as oxygen generators and ventilators to Nepal, Afghanistan, Laos, Cambodia, Myanmar, Sri Lanka and other countries. Within several days, we sent a team of medical experts to Laos and delivered anti-epidemic materials to Nepal.

Second, providing various support. Since the outbreak of COVID-19, China has supported neighboring countries in their fight against the pandemic through numerous means, such as donating medical supplies and vaccines, sending medical experts, holding online meetings, and setting up reserves of anti-epidemic materials in South Asia. Ever since China achieved notable success in slowing the spread of the virus, we have gained invaluable experience and time for the world and didn't disappoint neighboring countries. So far, China has donated multiple batches of anti-epidemic materials and more than 80 million doses of vaccines to neighboring countries and regions, especially sending out groups of vaccine experts over 10 times while holding over a thousand of video conferences to share our experience and trained foreign medical staff, which had direct beneficial effects.

Third, moving the anti-pandemic barrier forward. Since last year, Ruili, a China-Myanmar border city in southwest China's Yunnan province, has been closed three times due to the pandemic. We have worked with domestic departments and Myanmar's government to donate anti-epidemic materials and vaccines to northern Myanmar. By establishing an effective mechanism to curb any cross-border spread of the virus, the epidemic in northern Myanmar has been controlled, and China's approach to preventing the coronavirus from entering the country and stemming a domestic resurgence has been guaranteed, with benefits that extend into anti-epidemic, diplomatic and political areas.

Fourth, strengthening good neighborliness. China's emergency aid to neighboring countries is still underway. A friend in need is a friend indeed. China's timely and efficient assistance, first, has played an important role in helping relevant countries control the pandemic, protect people's lives and reduce property losses. Second, it has contributed to domestic epidemic prevention and control. Third, it has enhanced traditional and people-to-people friendship between China and neighboring countries. Fourth, it is in sharp contrast to the indifference of some major countries towards epidemic control in other countries. We are glad to see that many foreign political leaders attended the handover ceremony of China's donations at the airport. Some leaders took the lead in receiving Chinese vaccines, and a lot of foreign media outlets praised Chinese vaccines as "timely rain." During the past two years, we've often worked overtime and met extraordinary situations with extraordinary perseverance, receiving recognition from both leaders and society. Thank you.

Beijing Youth Daily:

What's the progress of China's COVID-19 assistance to Africa, Latin America and the South Pacific region? What measures will be taken in the future? Thank you.

Zhou Liujun:

China and countries in Africa, Latin America and the South Pacific region enjoy a history of profound friendship and share weal and woe together. We are good partners, good friends and good brothers on the path of development. Guided by Xi Jinping Thought on Diplomacy, China upholds the values of greater good and shared interests and follows the principles of sincerity, affinity, good faith and real results. Under the framework of Forum on China-Africa Cooperation (FOCAC) and China-CELAC Forum, we have cooperated in areas such as health, agriculture, education and green development, and achieved remarkable results in building an even closer China-Africa and China-Latin America community with a shared future.

Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) was held in 2018. The sudden outbreak of the pandemic brought us a severe test. We have actively responded to multiple impacts of the pandemic and provided support and assistance within our capacity to African countries and the African Union (AU), to aid their economic and social development, mainly in the following aspects.

First, conducting anti-pandemic cooperation. We immediately donated more than 120 batches of testing reagents, ventilators and other anti-pandemic supplies, while providing vaccines to 50 African countries and the AU, and sending medical expert teams to 17 African countries.

Second, supporting economic recovery. We have implemented nearly 400 assistance projects across various fields. Despite the impact of the pandemic, nearly 10,000 Chinese engineers, technicians and medical workers remain in their posts. Likewise, hundreds of assistance projects have already been implemented, which provide strong support for African countries to resume work and production.

Third, advancing project cooperation. We have fully implemented the "eight major initiatives" introduced at the FOCAC Beijing Summit. Construction on the headquarters of the Africa Center for Disease Control and Prevention (Africa CDC) began ahead of schedule at the end of last year. Other projects that China provided aid for such as a children's hospital in Senegal and a center for treatment of infectious diseases in Mauritania's Nouakchott National Hospital were successfully completed and handed over to local governments. Such key medical projects have played an important role in African countries' fight against the epidemic. An additional 50 Chinese assistance projects in each of the six areas of industrial promotion, health, peace and security, green development, trade promotion and people-to-people exchanges will all be completed soon.

Fourth, reducing and canceling debt to alleviate African countries' financial burden.

Fifth, improving capabilities. We have trained more than 25,000 talents and technical personnel for African countries, and cooperated and shared experiences with 45 hospitals in 40 African countries. The governments and people of those nations expressed their sincere appreciation for China's help and cherish China as a true friend of Africa.

China also provided assistance to Latin American countries and island countries in the South Pacific region. We have carried out a large number of assistance projects covering transportation, agriculture, animal husbandry and fishery, infrastructure, culture, education and health, and trained more than 50,000 managerial and technical personnel in various fields, which strongly supported regional economic and social development. More specifically, since the outbreak of COVID-19, China promptly provided anti-epidemic materials and vaccines to countries in need. To date, 53 batches of anti-epidemic materials and 28 batches of vaccines have been delivered to relevant countries. Chinese experts communicated with other countries' medical staff and shared their experiences during video conferences. We have actively implemented the G20 debt relief initiative and helped those countries alleviate their debts.

Next, besides deepening anti-pandemic cooperation, we will focus our foreign cooperation on public health, trade promotion, connectivity, poverty alleviation and benefiting rural workers, digital innovation, green development, peace and security, capacity building and similar fields. Through promoting small but beautiful, advantageous and effective projects, China vows to deliver the benefits of assistance to people of recipient countries, work together to fight against the pandemic, and accelerate economic and social recovery, so as to make greater contributions to building a community with a shared future for mankind. Thank you.

Bloomberg News:

The first question is about the debt issues in Africa. What is the best way to resolve the problems African nations are facing? Secondly, what steps China is taking, if any, to join Paris Club?

Zhou Liujun:

I'll continue and answer the questions about the debts of African nations and joining the Paris Club.

Debts in Africa have attracted much attention. It's a long-standing historical issue. The reasons are complex and not only include changing factors such as the international economic environment but also external reasons such as the rise of protectionism and appreciation of major reserve currencies. Over the past two years, the issue of debts in Africa has become more prominent due to the impacts of COVID-19. China has always paid great attention to debt-related pressures faced by African countries. We always respect the will of African countries in terms of financing cooperation and wish to meet their needs. When we offer interest-free loans and preferential loans, we have fully considered the debt situations and repaying capabilities of recipient countries, adhered to the laws and regulations, done our work in an open and transparent manner, and never sought political gains. 

In the process of cooperation with Africa, we have been committed to pursuing the greater goods and shared interests and upholding the principles of sincerity, real results, affinity, and good faith for developing relations with other developing countries. We have dealt with issues on loans and debts relief in Africa through friendly consultation. China and Africa have a shared future and are facing the difficulties together brought by the pandemic. President Xi and leaders of relevant African countries convened the Extraordinary China-Africa Summit on Solidarity Against COVID-19 and announced a series of important measures such as support of the development of relevant African countries and debt suspension and reduction. China has actively promoted and fully implemented G20's Debt Service Suspension Initiative, signing debt suspension initiatives or reaching consensuses with 19 African countries. China has exempted the least developed countries, heavily indebted poor countries, landlocked developing countries, and small island developing countries in Africa from interest-free loans due at the end of 2020.

We believe that the solution to Africa's debt problems lies in development, and development holds the key to solving all of its problems. It is necessary for African countries to enhance their capacity for independent development and achieve sustainable development. China-Africa cooperation has always been a benchmark for South-South cooperation, and it is also recognized as a model of international cooperation with Africa. According to incomplete statistics, China has built more than 6,000 kilometers of railways, more than 6,000 kilometers of roads, nearly 20 ports, and more than 80 large-scale power facilities in Africa. As an old Chinese saying goes, "To get rich, build roads first." The transportation infrastructure has injected vitality into the development of the African economy. We have also assisted in the construction of more than 130 medical facilities, 45 sports venues, and more than 170 schools. During the pandemic, many Chinese engineering technicians are still sticking to their posts in Africa to ensure the China-Africa key cooperation projects run safely and to provide strong support for the resumption of work and production in African countries. 

As I said, the issue of Africa's debt has attracted much attention and people have various opinions. Meanwhile, we have noticed that some media are peddling allegations that China's loans have created an "invisible debt trap." I can tell you that these are erroneous statements. Many Western, Asian, and African governments, scholars, and research institutions have undertaken detailed investigations on these issues. Not a single developing country has fallen into debt traps due to China's loans. Facts and statistics have fully revealed that allegations "China causes debt trap for Africa" are simply out of political, motives aiming to drive a wedge between China and Africa. I think, regarding China's support for Africa, only African governments and people have the right to speak. 

Now for the second question, as to whether China will join the Paris Club. Currently, China is not a member of Paris Club, but we have participated in some of the Paris Club activities as a non-member, and communication with the member countries of the Paris Club has been smooth.

In the next step, China will adhere to the multilateral debt handling principles of "joint action, fair burden sharing, individual cases handling, and multilateral consensus," strengthen communication and cooperation with all parties, work together to help African countries deal with debt problems and work with Africa to step up the implementation of fruits of the 2018 Beijing Summit of the Forum on China-Africa Cooperation, accelerate the promotion of cooperation projects that meet the urgent needs for the development of African countries, and further strengthen the indigenous driving force for the African economy. At the same time, we proposed that developed countries, multilateral financial institutions, and private creditors match their words with actions, and do more things that are beneficial to the development of African countries and other developing countries. We will work together and complement each other's advantages, and sincerely support developing countries, including African countries, to achieve sustainable development and bring real benefits to local people. Thanks.

Southern Metropolis Daily:

What is the overall situation of the Chinese government's foreign aid in the fight against the pandemic, and what's the next plan? What basic role has China's vaccine assistance played for recipient countries? Compared with the vaccine assistance of the US and the West, what are the characteristics of China's vaccine assistance? 

Deng Boqing:

Thank you for the question. In March of last year, I introduced the 

anti-COVID assistance situation to you on behalf of the China International Development Cooperation Agency (CIDCA). Now one and a half years have passed, the pandemic is still raging worldwide. I checked the data today. So far, the cumulative confirmed cases worldwide have exceeded 244 million, the cumulative number of deaths is over 4.96 million, and fatality rates have reached 2%. Therefore, in such a special period, countries in the world should help each other more than any time to overcome these difficulties together. Under the personal leadership and deployment of President Xi, China has taken the lead in both epidemic fight and economic recovery. Meanwhile, we uphold the concept of a community with a shared future for mankind and actively carry out international cooperation in the fight against the epidemic. We have carried out the most concentrated emergency humanitarian assistance on the most wide-reaching scale since the founding of the People's Republic of China. Let me show you some figures.

In terms of material assistance last year, we provided a large number of anti-epidemic materials such as masks and protective clothing, as well as a large number of medical materials such as ventilators and oxygen cylinders, spanning more than 150 countries and 13 international organizations. We have provided a large number of nucleic acid testing reagents and equipment. We have also sent 37 batches of medical experts to 34 countries, organized technical guidance, and shared anti-epidemic experience with other countries. We have also donated US$50 million to the World Health Organization and US$50 million to UN agencies and other relevant international organizations.

This year, we have fully implemented President Xi's promise to make Chinese vaccines global public goods. So far, we have provided more than 1.5 billion doses of vaccines to 106 countries and four international organizations. Many heads of states thanked President Xi, saying that China's precious support and help is a vivid portrayal of "a friend in need is a friend indeed" and has set a model for international cooperation in COVID-19 response. More than 30 presidents and premiers received Chinese vaccines at the airport and attended handover ceremonies. More than 10 foreign leaders took the lead in receiving a shot of Chinese vaccines. International media have praised the Chinese vaccine as "timely rain."

Now there is also a voice in the international community that questions the safety and effectiveness of Chinese vaccines. There are so many heads of state that spoke highly of and welcome Chinese vaccines. In our work, we have also noticed that the safety and wide use of Chinese vaccines have been widely recognized. The World Health Organization has included Sinopharm vaccines and Sinovac vaccines on the emergency use list, a recognition from the professional and authoritative international organization. From the practical view, first, the safety and effectiveness of Chinese vaccines have been fully verified through the large-scale vaccination in China. Second, the international community has full confidence in Chinese vaccines. International scientific research and clinical data from various countries also provide strong support. We have read some materials and collected some typical data. For example, in Sri Lanka, 95% of the population produced antibodies after receiving two doses of the Sinopharm vaccine, and 81.25% of the population could produce vaccine-induced neutralizing antibodies. The Sinopharm vaccine is effective against the Delta variant of COVID-19. The infection rate after people in Dominica were inoculated with Sinovac vaccines was only 0.04%. In Indonesia, 96% of medical workers vaccinated with Chinese vaccines were exempt from hospitalization, and 94% were exempt from infection. It can be said that China's foreign aid and vaccine exports have made positive contributions to the world, establishing an immune barrier for various countries.

In the next step, we will continue to implement President Xi's important commitments. This year, we will strive to provide two billion doses of vaccine to the world, donate another 100 million doses of vaccine to developing countries, and donate US$100 million to the "COVID-19 Vaccines Global Access (COVAX)." We are willing to work with the international community to advance international vaccine cooperation and promote the building of a global community of health for all. Thanks.

People's Daily:

What role do China's foreign aid projects play in addressing climate change and promoting global green development? Thank you.

Zhang Maoyu:

Climate change is nature's alarm bell to humanity, and China is acutely aware of this. President Xi Jinping made a statement at the general debate of the 75th session of the United Nations General Assembly. He announced that China aims to have CO2 emissions peak before 2030 and achieve carbon neutrality before 2060. This is a major strategic decision made by China that considers both domestic and international situations. It demonstrates China's responsibility in actively addressing climate change and building a community with a shared future for mankind, and it shows China's determination to pursue green, low-carbon and high-quality development.

Since the 18th CPC National Congress, by offering foreign aid, we have helped to enact the South-South cooperation commitments concerning climate change, actively joined the international community on climate change action and supported developing countries' response to the challenges of climate change. During the last eight years, we have implemented more than 200 foreign aid projects that address climate change. Among them, there are about 70 climate change mitigation projects, including the solar power supply project at the Parliament Building of Pakistan, the green development project for the Addis Ababa river bank in Ethiopia, and others. Likewise, there are about 150 climate change adaptation projects, which include projects responding to floods in Nepal, hurricanes in Fiji, and tropical cyclones in Mozambique. We have also conducted 80 seminars on climate change topics and trained nearly 2,000 relevant personnel.

Next, foreign aid will focus on promoting green development to help developing countries improve their coping strategies for climate change. First, we will enhance project support and execute climate change environment protection projects. We will optimize clean energy and desertification prevention and control projects such as photovoltaics, biogas, and hydropower stations. Second, we will focus on environmental factors, strengthen the assessments of environmental protection and climate change factors in foreign aid projects, and promote the transition of projects to ones that are climate-friendly. Third, we will step up financial cooperation, strengthen coordination between the South-South Cooperation Assistance Fund and other funds – which include the special fund for Lancang-Mekong cooperation, the China-Africa Development Fund and the South-South Climate Change Cooperation Fund – to create synergy. Fourth, we will strengthen coordination and cooperation between central and local governments, leverage the geographical advantages of Yunnan, Tibet and other border provinces and areas, and provide assistance to neighboring countries in cross-border water resource management, nature reserve construction and more. Fifth, we will host experience exchanges and support developing countries as they take actions to maintain safe boundaries for nature. We will also encourage green recovery, green production and green consumption, promote a harmonious existence between man and nature, and let a sound ecology and environment be the inexhaustible source of sustainable development. Thank you.

CRNTT:

Some part of overseas public opinion suggests that China's foreign aid has not been transparent enough. What measures has the Chinese government taken to increase the transparency of its foreign aid projects? Thank you.

Zhou Liujun:

China's foreign aid has always been open and honest. I should emphasize that a press conference like this one, in which chairman Luo Zhaohui instructs the whole team to take initiative and release information and interact with friends from the media, demonstrates that we prioritize the promotion of foreign aid and increased transparency. Chinese leaders have repeatedly expounded on China's foreign aid policies, concepts, the overall situation and significant measures at major international occasions, such as the UN conferences, the Belt and Road Forum for International Cooperation and the Forum on China-Africa Cooperation.

In recent years, the Chinese government has presented its foreign aid situation through the release of white papers. The first white paper was issued in 2011 by the Chinese government, and it provided a comprehensive and systematic introduction to China's foreign aid policies, funds, methods, distribution and management. In 2014, we issued the second white paper on foreign aid. This white paper gave a comprehensive and objective introduction to aid funds, methods and distribution between 2010 and 2012. In January this year, which marked the third anniversary of the establishment of the CIDCA, we took the opportunity to issue a white paper entitled "China's International Development Cooperation in the New Era." It focuses on the international community's interests in China's international development cooperation and outlines China's principles and policies for international development cooperation following the 18th CPC National Congress. Moreover, it highlights the positive contributions China's international development has made in terms of building a community with a shared future for mankind in the new era. It also proactively responds to the international community's concerns.

I want to emphasize that, after the establishment of the CIDCA, we immediately launched an official website, WeChat public account and overseas social media accounts. Friends from the media have been welcome to visit and browse. The channels are an easy way for the public at home and abroad to get information about China's foreign aid. We will continue to explain the foreign aid situation to the public and release relevant information and data in a timely manner through the various channels. Thank you again for your concern, interest and support. Thank you.

China Daily:

Recently, the CIDCA has conducted a series of publicity activities, which include commemorating the 70th anniversary of China's foreign aid, the 20th anniversary of Juncao Assistance, and the fifth anniversary of the South-South Cooperation Assistance Fund and the Institute of South-South Cooperation and Development. These activities have attracted extensive attention from the media and the Chinese people. Could you introduce the background and significance of these activities? Thank you.  

Luo Zhaohui:

I'm very glad that you followed our events. This year marks the 100th anniversary of the founding of the Communist Party of China. We still remember that at the end of May this year, the Political Bureau of the CPC Central Committee held a group study session, and President Xi Jinping once again called on everyone to tell China's stories well. For this purpose, the CIDCA took the initiative to design these activities. The first event was to commemorate the 70th anniversary of China's foreign aid, and introduce its history, a glorious chapter of the 100th anniversary of the CPC. Since the founding of the CPC, during the War of Resistance against Japanese Aggression, China has received support and help from Communist International and many global progressive forces. In the 1950s, we also received great help from the Soviet Union and a lot of support from socialist countries. We were a recipient from the beginning. At the same time, we reciprocated by providing foreign aid from the very beginning of the founding of the People's Republic of China. The 71-year history of foreign aid is a glorious chapter of the CPC and epitomizes the love and friendship that the Chinese government and Chinese people have shown to other countries. The photo exhibition on the 70th anniversary of China's foreign assistance is a macro reflection of the history of China's foreign aid since the founding of the People's Republic of China. And the exhibition also highlights the original aspiration of the CPC to seek common development in the world and contribute to the cause of human progress. 

We would also like to note that besides the photo exhibition, we also held an event celebrating the 20th anniversary of Juncao assistance. Just like hybrid rice, the technology of Juncao, Chinese herbal medicine and green food, has become a shining example of China's foreign aid. Many developing countries have been confronted by salient issues relating to agriculture, rural areas and farmers. Twenty years ago, President Xi Jinping, then governor of Fujian Province, made important instructions on and personally worked for the introduction of Juncao technology to Papua New Guinea for poverty alleviation. Since then, along with the goodwill of the Chinese people, Juncao has made its way across the world, from Africa to Latin America, from Asia to South Pacific. We have launched over 270 Juncao technology training courses with more than international 10,000 trainees, bringing hundreds of thousands of jobs to local people. Even some government officials, in commemoration of the magic grass, named their children "Juncao."

Just now, our media friends mentioned activities celebrating the fifth anniversary of the establishment of the South-South Cooperation Assistance Fund and the Institute of South-South Cooperation and Development (ISSCAD), announced by President Xi Jinping at the United Nations in 2015 and started operation in the following year. The Institute was set up in Peking University with well-known economist Justin Yifu Lin acting as Honorary Dean. Over the past five years, it has become a high-end academy with more than 200 masters or doctors received from over 60 countries, yielding great results. South-South Cooperation Assistance Fund has closely worked with over 10 international organizations within the UN system by launching more than100 projects which help significantly improve the people's wellbeing among 50 countries, benefiting over 20 million people. The Fund has had a real contribution to the implementation of the UN 2030 Agenda for Sustainable Development by its efforts to fight everything from the Ebola virus to COVID-19, as well as advancing the healthcare system for women and children and addressing refugee and immigrant crisis.

As China's important public goods, the fund and the institute have become significant global brands for China to promote South-South cooperation and sustainable development under the support from all sides. This demonstrates that China's foreign assistance and international development and cooperation are transparent. The China International Development Cooperation Agency (CIDCA) was found on April 18, 2018, from the name of which it can be noted that China is willing to be in line with the rest of the world. We used the term of international cooperation and development to replace that of foreign aid used by the international community including the United Nations in the past, a move to put emphasis on bilateral cooperation rather than one-side assistance. What we mainly take into consideration is whether it meets the needs and development strategies of participating countries. What we have done, from working with the UN system to launching commemorative activities, aim to boost transparency in our foreign assistance. Any country or any politician without prejudice will recognize our efforts to strengthen collaboration with the international community and accelerate the transition from bilateral aid to multilateral cooperation.

The fund and the institute mentioned are fine examples. Besides South-South cooperation, which means the developing countries help each other, we also pursue North-South cooperation. China has done lots of work to cooperate, communicate and coordinate with the United Nations and western developed countries.

Thank you all!

Phoenix TV:

A recent American research report on Chinese project abroad under the Belt and Road Initiative (BRI) points to many major problems like corruption, labor violations, environmental risks and public protests, causing that participating countries' willingness is fading. What is your comment on this? Besides, what is China's role in foreign assistance and international cooperation regarding the BRI? Thank you!

Luo Zhaohui: 

This is a very good question. To build a community with a shared future for mankind is the essence of Xi Jinping Thought on Diplomacy, and the BRI cooperation has been considered as an important platform. President Xi Jinping on Sept 21 proposed a Global Development Initiative, which was highly spoken by the UN. Secretary-General Antonio Guterres said that the UN would support and cooperate closely with China to further promote the Initiative when he met with President Xi yesterday via video link.

This question has also attracted much attention. I will invite my colleague Deng Boqing to answer it.

Deng Boqing:

Thank you for your question. As the most significant platform for building a community with a shared future for mankind, the BRI highly resonates with the UN 2030 Agenda for Sustainable Development and has been widely recognized by the international community. To date, up to 140 partner countries and 32 international organizations have signed documents on Belt and Road cooperation with China. Over 90 bilateral mechanisms have been established. 

We follow the principles of extensive consultation, joint contribution and shared benefits, and champion the philosophy of open, green and clean cooperation, in a bid to make Belt and Road cooperation high-standard, people-centered and sustainable. With regard to a blueprint and specific project for the BRI, we always act in the spirit of broad participation and equal negotiation in a public and transparent way and take a "zero tolerance" approach to corruption. Recently, President Xi Jinping announced that China would not build any new coal-fired power plants abroad, which are highly praised by the international community.

It is our important responsibility to serve the BRI. President Xi Jinping announced a series of foreign assistance measures at the Belt and Road Forum for International Cooperation (BRF), including that China will provide assistance worth 60 billion yuan to developing countries and international organizations participating in the BRI and China will launch 100 "happy home" projects, 100 poverty alleviation projects and 100 health care and rehabilitation projects in countries along the route. We have fully implemented these measures and make greater efforts to support the BRI. The overall effects of China's foreign assistance are on a consistently upward trajectory.

Since the pandemic, some projects have been affected. However, it is an indispensable obligation for China to help other countries fight against COVID-19 and restart development. During the pandemic , China has stepped forward to inject impetus into the implementation of the Agenda for Sustainable Development. Instead of hitting the "pause" button, we have continued to jointly build the BRI despite challenges and promote global development and cooperation with great zeal. We noticed that during the pandemic, a series of major projects such as the China-Laos Railway and the Hungary-Serbia Railway made breakthrough progress. Meanwhile, China-Europe freight trains and traffic volume throughout the year expanded 50% and 56% year on year, respectively. In addition, China's non-financial outbound direct investment to countries along the BRI rose by 18.3% year on year.

We will continue to act according to our capability and try our best to help those countries in need without any political conditions by the principle of equal treatment and mutual respect, to better serve the Belt and Road Initiative. Thank you.

ThePaper.cn:

How does the China International Development Cooperation Agency feel about carrying out triangular cooperation with Western countries and international organizations in development assistance? Thank you. 

Zhang Maoyu:

Thank you for raising such a good question. China not only recognizes the importance of providing bilateral aid to developing countries but also the importance of carrying out triangular and multilateral cooperation with Western countries and international organizations in this regard. We have always held a positive and open attitude towards carrying out international development exchanges and triangular cooperation. As a developing country, we will continue to explore triangular development cooperation with related parties, enrich cooperation modes and paths, and improve cooperation level and capacity. Our proposals are as follows: First, we should foster global development partnerships that are more equitable and balanced. We will actively implement the Global Development Initiative proposed by President Xi Jinping, and adhere to the principle of common but differentiated responsibilities in international development cooperation while enhancing the role of North-South cooperation as the main channel and South-South cooperation as a beneficial supplement. Second, we should tap into our respective strengths and steadily advance triangular cooperation. We should respect the policies, ideas and modes of all parties, and enhance mutual understanding and trust in the spirit of mutual respect, sharing experiences, complementing each other and learning from the strengths of others. Third, we should respect the sovereignty and leading role of recipient countries. We should uphold the principles of aid projects demanded, agreed to and led by recipient countries, and the criteria should be based on whether recipient countries welcome or not, agree or not and are satisfactory or not. The focus should be on meeting the needs of recipient countries for humanitarian aid and aid concerning people's livelihood and employment, and strengthening their capacity for development. 

It has been more than three years since the establishment of the China International Development Cooperation Agency. During this time, we have advanced dialogues and consultation, participated in international meetings and activities including the Second High-level United Nations Conference on South-South Cooperation and the European Development Days, and conducted exchanges including visits with more than 10 countries and regional organizations including Japan, Germany, Switzerland, Britain, France, Norway and the European Union. In recent years, under the South-South Cooperation Assistance Fund, China has cooperated with a number of UN organizations, such as the United Nations Development Programme, the World Food Programme, the UN Refugee Agency and the UNICEF. China has conducted development cooperation projects in more than 50 countries in the fields of food assistance, post-disaster reconstruction, refugee relief and health care for women and children. Moreover, China has launched triangular cooperation projects with Switzerland, Portugal, Britain, the United States, Australia and New Zealand that meet the needs of recipient countries in agriculture, health care and other areas concerning people's livelihood. 

Next, we will continue to explore triangular cooperation with an open and pragmatic attitude, and also encourage the private sector, non-government organizations and charities to play a bigger role in providing new momentum for international development cooperation. 

HK Economic Herald:

My question is for Mr. Luo. Since China began international cooperation against the virus, the China International Development Cooperation Agency has received much attention. Can you talk about its functions and focuses as a newly established agency?

Luo Zhaohui:

Thanks for your question. The agency was set up three and a half years ago, and is directly affiliated with the State Council. Frankly speaking, it is better known abroad than at home. Many friends at home found the name of the agency, China International Development Cooperation Agency, confusing, as it contains both "China" and "international," so I am happy to take this opportunity to introduce it. 

Some of the points I and my colleagues just mentioned already reflect the main responsibilities and functions of the agency. Specifically, directly affiliated with the State Council, the agency is responsible for drafting foreign aid policies and plans, approving foreign aid projects as well as supervising and assessing the implementation. We need to evaluate the necessity, possible problems and effects of a project and deal with the problems that might arise in the implementation. We are also responsible for coordinating efforts on major foreign aid issues and promoting reforms of foreign aid methods. This is a major decision of the CPC Central Committee and the State Council after the 19th CPC National Congress to promote the cause of foreign aid. Over the past three and a half years since its establishment, the agency has enacted reforms and optimized its setup while performing functions, thus giving China's foreign aid work in the new era a new look with new efforts and results.

First, we have made significant achievements in guaranteeing China's overall diplomacy. With serving head-of-state diplomacy as our top priority, we have participated in a series of President Xi Jinping's important bilateral and multilateral foreign affairs activities and proposed a number of impressive and feasible aid initiatives, which have seen results. Second, we have made notable progress in guiding South-South cooperation. We have strengthened the synergy of aid projects with the development plans of recipient countries, and launched aid projects in the fields of health care, education and culture, poverty relief and capacity building to enhance the economic and social development of recipient countries and the lives of their people, thus contributing Chinese strength to the implementation of the United Nations' 2030 Agenda for Sustainable Development. We joined hands with other countries to cope with global challenges such as natural disasters and food crises, and provided emergency humanitarian aid more than 150 times. While providing assistance for fighting against the virus, we also provided emergency humanitarian aid in response to floods and food crises. Third, we have made new progress in supporting domestic development. We have given play to the leveraging and guiding role of foreign aid in boosting trade, investment and opening up at a higher level under the Belt and Road Initiative. We assisted recipient countries in their building of centers for inspection and quarantine, and provided their customs with commodity inspection equipment. We also encouraged good Chinese enterprises, products and technologies to go global based on the demand of recipient countries. Fourth, international exchanges and cooperation have born rich fruit. As we just stated, we held three important activities to mark the 70th anniversary of China's foreign aid, the 20th anniversary of the Juncao Assistance and Sustainable Development Cooperation, and the 5th anniversary of the establishment of the South-South Cooperation Assistance Fund and the Institute of South-South Cooperation and Development respectively. President Xi Jinping sent congratulatory letters to the latter two activities, which demonstrated the importance that Chinese leaders and the Chinese government attach to South-South cooperation and China's resolution to implement the sustainable development agenda as a responsible major country. These activities have received much attention from the international community and UN organizations. We released the white paper titled "China's International Development Cooperation in the New Era," and established relations with more than 50 countries and international organizations. Fifth, we have continued to deepen foreign aid reforms. We implemented new ideas for foreign aid, focusing on projects that can have timely and remarkable effects on people's livelihood though not large in scale. We strengthened the integrated design of soft and hard assistance and amplified the combined effects of projects. We sped up the process of enacting, amending or repealing laws and regulations and formally released 24 normative documents including the Measures for the Administration of Foreign Aid. According to the requirements of achieving optimization, coordination and efficiency, an inter-ministerial foreign aid coordination mechanism involving 25 departments was set up to strengthen coordination and unified management of foreign aid across all fields and departments. Here, I must stress that foreign aid projects are launched based on strict approval procedures and criteria instead of doing it at will. During the implementation of a project, strict supervision is required. After a project is completed, strict assessment is required. We established the Department of Supervision and Evaluation three years ago, which ensures the transparency, quality and honesty of our projects and that each project can deliver a satisfactory report. 

Some Western countries, including the United States, have never stopped slandering and smearing the Belt and Road Initiative as well as our international cooperation against the virus. Since the founding of New China, more than 700 foreign aid workers have died in foreign countries. Our foreign aid workers fear no hardship, act with a sense of responsibility and demonstrate heroic spirit. The new era calls for a new sense of responsibility, and we will continue to fulfill our duties and pursue innovation to promote the high-quality development of our foreign aid work. 

Of course, we should never forget where we came from, no matter how far we go. Over the past 71 years, our foreign aid work has adhered to our own ideas and principles, and had distinctive Chinese characteristics. First, equality and win-win cooperation. Second, honoring commitments and seeking concrete outcomes. We never make empty promises and always stand by our word. We contribute according to our ability and never try to be a savior. However, as long as we make a promise, we will do our best to fulfill it no matter how difficult it is. Third, focusing on development and believing that it is more important to show people how to fish rather than just giving them fish. Fourth, openness and inclusiveness, exchanges and mutual learning. 

Next, we will make health the priority of our foreign aid and international development cooperation, and do our best to support international cooperation against the virus. We will focus on green development and continually implement the sustainable development agenda. We will also focus on people's livelihood and contribute to global economic recovery. Taking multilateralism as a guide, we will continue to improve global governance in the field of development cooperation. These will be the focus of our foreign aid and international development cooperation work going forward. 

I hope that you will learn more about the agency, and I also welcome Chinese and foreign media friends to visit the agency. Our agency can work together with the State Council Information Office to organize activities for an Open House. This is an invitation to you all. Thank you all. 

Shou Xiaoli:

Thank you, Mr. Luo, and thank you all. Today's briefing is hereby concluded. Goodbye, everyone. 

Translated and edited by Zhang Rui, Zhang Liying, Lin Liyao, Wang Qian, Gao Zhan, Liu Qiang, Yan Xiaoqing, Wang Yiming, Zhang Tingting, Ma Yujia, Yang Xi, Yuan Fang, David Ball, Drew Pittock, 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:

Yao Jingyuan, special researcher of the Counsellors' Office of the State Council

Xu Xianchun, professor at the School of Economics and Management, Tsinghua University, and director of Tsinghua China Data Center

Chairperson:

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

Date:

Oct. 18, 2021

Xing Huina:

Friends from the media, good afternoon. Welcome to this briefing held by the State Council Information Office (SCIO). This morning, we held a press conference to present China's economic data from the first three quarters of 2021. The briefing this afternoon will further analyze the economic performance in the first three quarters of the year. At this briefing, we are joined by two experts: Mr. Yao Jingyuan, special researcher of the Counsellors' Office of the State Council; and Mr. Xu Xianchun, professor at the School of Economics and Management, Tsinghua University, and director of Tsinghua China Data Center. They will start by giving you their interpretations of the economic data and then take your questions.

Next, I'll give the floor to Mr. Yao Jingyuan.

Yao Jingyuan:

According to the principles of economics, a country's overall economic situation can be analyzed from four indicators: the growth of gross domestic product (GDP), job creation, consumer prices, and balance of payments.

The first indicator is GDP growth. China's GDP registered a year-on-year increase of 9.8% in the first three quarters of the year. As we know, according to the Government Work Report delivered by Premier Li Keqiang in March, China aimed to expand its economy by over 6% in 2021. The latest estimate by the International Monetary Fund (IMF) also said that China's economy will grow by 8%. I estimate that annual growth in 2021 will reach about 8%. Therefore, the GDP growth rate is within our expectations.

The second indicator is job creation. In the first three quarters of the year, China added 10.45 million new urban jobs in the first three quarters, achieving 95% of the annual target. The surveyed unemployment rate in the first three quarters stood at 5.2%, which was 0.5 percentage point lower than the same period last year, and also lower than the 5.5% target for this year put forward by Premier Li Keqiang in the Government Work Report this March. The employment of migrant workers was also very good. Some 3.51 million new migrant worker jobs were added in the first nine months of the year, close to the level in 2019.

The third indicator is consumer prices. Plenty of people were worried about inflation at the end of 2020 and the beginning of this year. Yet the actual situation is that, in the first nine months of 2021, the consumer price index (CPI) went up by 0.6% year on year. Compared with the 3% target set at the beginning of this year, China's consumer prices generally remained at a low level and stable.

The fourth indicator is balance of payments. Many experts and scholars did not expect that China's foreign trade could sustain such good growth momentum. In the first three quarters of the year, the total value of imports and exports was 28.33 trillion yuan, which is a comparatively high level historically speaking. Specifically, exports increased by 22.7% year on year, and imports went up by 22.6%, achieving a basic equilibrium. China's actual use of foreign capital amounted to 758 billion yuan in the first eight months of the year, up more than 20% year on year.

Based on these four indicators, it is fair to say that China's economy has remained within the set growth range. In addition, against the backdrop of the pandemic and its unprecedented fallout, China's economy is currently recovering. Of course, there are some things worth noting seen from the economic data in the first half and third quarter of 2021. For example, there has been a downward movement in the economy from the second to the third quarter, which we will discuss later.

I'll stop here for now. My analysis aims to offer you a method to interpret China's economy, which is to analyze it based on these four indicators. These four major indicators show that China's economy is currently in a sound stage of recovery. Thank you.

Xing Huina:

Thank you, Mr. Yao. Next, Mr. Xu Xianchun will have the floor.

Xu Xianchun:

Thank you, Ms. Xing. Friends from the media, good afternoon! 

Mr. Yao just elaborated on the economic performance of the first three quarters from the perspective of four major macro indicators. I will talk about characteristics of the economic growth of the first three quarters from the following three perspectives.

First, I will talk about three characteristics from the perspective of production. First, the year-on-year growth rate dropped quarter-by-quarter, but the average two-year growth rate remained relatively stable, and the economic growth of the first three quarters remained fast, which has laid a good foundation for achieving the year's target. According to the statistics released by the National Bureau of Statistics this morning, GDP of the first quarter increased by 18.3% year-on-year, by 7.9% in the second quarter, and by 4.9% in the third quarter. This indicates that the year-on-year growth rate has declined significantly. But in terms of the average two-year growth rates, namely 5% in the first quarter, 5.5% in the second quarter, and 4.9% in the third quarter, the trend remained relatively stable, with only a 0.6 percentage point gap between the highest and lowest. In addition, the GDP growth rate of 9.8% in the first three quarters was high. From my point of view as an expert, I can predict that the GDP growth of 9.8% is a decisive factor for achieving the year's target of about 7%, so the growth of the first nine months has laid a foundation for achieving the year's target. Second, the added value of the secondary industry was the fastest-growing area, which played a significant role in supporting economic growth. The added value of the secondary industry saw an increase of 10.6% year-on-year in the first three quarters, the fastest rate among the three industries. Third, the service sector made the biggest contribution to economic growth, and was the major driving force of economic growth of the first three quarters. In the first nine months, the added value of the service sector accounted for 54.8% of GDP, and the contribution of the sector to economic growth reached 54.2%, up 1.2 percentage points compared with the first half of the year. 

Second, I will also talk about three characteristics from the perspective of demand. First, consumption has played a leading role in driving economic growth. In the first nine months, the contribution of consumption to economic growth reached 64.8%, up 3.1 percentage points compared with the first half of the year. Second, the role of investment in driving economic growth weakened. In the first nine months, the contribution of investment to economic growth reached 15.6%, down 3.6 percentage points compared with the first half of the year. Third, net export demand showed a good momentum and played an important role in driving economic growth. In the first nine months, the contribution of net exports to economic growth reached 19.5%, up 0.4 percentage point compared with the first half of the year.

Third, new economic forms and new driving forces continued to grow fast. This provided important support for economic growth. The highlights of their robust growth are as follows. First, the high-tech manufacturing sector continued to grow fast. The value added of high-tech manufacturing went up by 20.1% year-on-year, with an average two-year growth of 12.8%, 8.3 percentage points and 6.4 percentage points higher respectively than that of large industrial enterprises as a whole. Second, the high-tech service sector continued to see fast growth. The added value of information transmission, software and information technology services increased by 19.3%, with an average two-year growth of 17.6%, 9.8 percentage points and 12.7 percentage points higher respectively than that of the service sector. Third, investment in the high-tech industries continued to grow fast. The investment in high-tech industries grew by 18.7% year-on-year, with an average two-year growth of 13.8%, 11.4 percentage points and 10 percentage points higher respectively than that of investment in fixed assets (excluding rural households). 

I have summarized the characteristics of economic growth from the above-mentioned three perspectives. Thank you.

Xing Huina:

Thank you. Now the floor is open to questions, please identify your media outlet before raising questions.

CCTV:

Major economic indicators in the third quarter slowed down significantly compared with those in the first half of the year. Does this mean that China's economic recovery trend has changed, and economic momentum has weakened? Just now, you mentioned that the IMF has lowered China's economic growth forecast for the year. The current situation worldwide is grave. How do you view the pressure on China's economic growth in the fourth quarter? Thank you.

Yao Jingyuan:

China's economic growth in the third quarter slowed from that in the second quarter of the year. First, we should see that it's not only the case for China. The global economic growth and recovery weakened on the whole. That's why the IMF lowered China's growth rate from 8.1% to 8%, and cut the world's growth rate by a 0.1% from 5% to 4.9%. So, the economic slowdown in the third quarter is a universal phenomenon around the world.

Here I'd like to focus on China. Why did China's economy slow down? First, it is a result of rising commodity prices on international markets. As we know, due to the supply and demand mismatch as a result of the pandemic, and excess liquidity, the prices of raw materials including oil, natural gas, non-ferrous metals, ferrous metals and coal have risen sharply on the international markets this year. China is the biggest importer and exporter of commodities in the world, and the rise in the prices of raw material commodities is bound to be transmitted to China through imports. This is the main international impact on China's economy.

Second, it is a result of China's own situation at the current stage. We are getting a clearer picture of the reasons leading to the current downtrend, such as the epidemic and severe floods. As we know, several places in China reported sporadic cases, including major economic provinces like Guangdong and Jiangsu. The greater the impact on these provinces, the more the Chinese economy is affected. There are also impacts from floods. Henan is also a major economic province, and its economy was hit hard by unprecedented floods. The recent floods in Shanxi province forced 60 local coalmines to stop production, and the coal output dropped sharply. These are periodic factors. Moreover, if more detailed analysis is made, you will find that the current downtrend is not resulted from the lack of an inherent impetus driving growth. There is much room for Chinese economic growth. Someone asked me today if the downward trend could be changed. My answer is in the affirmative. We can adopt a series of policy measures to resolve these issues for the current stage. Take the coal supply shortage problem as an example. Coal prices rose due to the decline in coal production, which in turn led to losses in power generation, followed by decrease in power supply. Hence, power rationing happened in some provinces. Can the coal issue be solved? We will resume the production of coal mines affected by floods as soon as possible. A total of 72 coal companies in Inner Mongolia have restarted production. We will also increase coal imports. Chinese Premier Li Keqiang recently talked to Mongolian Prime Minister via video link to further promote the coal trading between the two countries. China tops the world with an installed capacity of power generation of 2,200 gigawatts. Thus, the coal shortage is a short-term problem and we can solve it.

We need to give more consideration to these short-term factors for the slowdown of China's economic growth in the third quarter from the second quarter. These short-term factors of the current period, overlapped with China's structural and periodic problems, made the issue more complicated. Therefore, in order to deal with the temporary problems, we need to step up efforts in structural reform to optimize the economic structure, and make counter-cyclical adjustment. In brief, China's economy still sustains a good inherent impetus, and we are able to reverse the slowdown.

Xu Xianchun:

In the third quarter, there were multiple factors that contributed to the declining economic growth rate, including incidental factors and structural factors. These factors were superimposed on each other, so it made some people feel that the downward pressure on the economy is relatively high. However, we should distinguish between incidental factors and structural factors. Incidental factors, such as coal shortages and floods, are relatively easy to resolve.

China's economic development is very resilient, because we have a huge market and relatively strong production capacity. Given the declining growth rate in the third quarter, what sort of economic growth should we expect in the fourth quarter? I think we could analyze this from two sides. On the one hand, pressure on the economy exists. First, in terms of the base number, last year's economic growth went from low to high. GDP fell by 6.8% in the first quarter, but grew up by 3.2% in the second quarter, 4.9% in the third quarter, and 6.5% in the fourth quarter. The growth rate picked up quarter by quarter, and the GDP growth rate in the fourth quarter was relatively high. I think the 6.5% growth rate has already exceeded the current potential growth rate, which will put pressure on economic growth in the fourth quarter of this year. Besides, some downward factors, such as investment, and specifically infrastructure investment, may slow down. On the other hand, there are also many supporting factors. For example, when it comes to consumption, the national per capita consumption expenditure in the first three quarters actually increased by 15.1%, and the average actual growth over two years was 3.7%. Among them, the two-year average growth rate rebounded 0.5 percentage point from the first half of the year. At the same time, employment is generally stable, and the growth of residents' income is also relatively stable. Among three major economic entities, residents see a relatively stable growth in income. The prevention and control of COVID-19 are stable. Residents' consumption capacity and willingness to spend money are also expected to continue to pick up.

On July 30, the Political Bureau of the CPC Central Committee held a meeting and pointed out that fiscal policy will play a major role in stabilizing growth. The key driver will be the major projects listed in the 14th Five-Year Plan. There are still 1 trillion yuan of special bonds to be issued in the fourth quarter, which may support infrastructure investment to some extent. The central bank requires monetary policy to remain stable, maintain reasonable and sufficient liquidity, and guide the reasonable growth of loans in the second half of the year. It's clear that the monetary policy will remain stable and moderately relaxed, which will promote the development of the real economy. Manufacturing investment may also pick up further. From the import and export perspective, China's favorable conditions, such as a complete industrial system and satisfactory epidemic prevention and control, are still attracting foreign importers. Net export demand in the fourth quarter could still be a key driver for economic growth.

Generally speaking, despite the downward pressure, the economy is still able to maintain a relatively stable growth in the fourth quarter.

ThePaper.cn:

According to data from the survey on unemployment rates and migrant workers, employment remained stable in the third quarter, but the economic situation has slowed down. What do you think of the inconsistency between the two? In the background of increasing pressure on economic growth, will the employment market face more challenges? Thank you.

Yao Jingyuan:

Just now, we talked about employment in China. In the first three quarters, new urban jobs completed 95% of the annual target. The surveyed unemployment rate was 5.2%, which fell within the expected target of 5.5%. In the past, we calculated unemployment rate on the basis of registered unemployment rate. That means if you are unemployed and go to the relevant government department to get registered, you will be included in the unemployment calculation. But if someone is unemployed and fails to register, is the calculation going to be accurate? Now the National Bureau of Statistics conducts labor force surveys to estimate the nationwide unemployment rate in cities and towns in accordance with international standards and criteria. The first of the criteria is that an individual doesn't have a job during the survey. The second is whether a person has the ability to work. The third and the most important is whether a person is actively seeking a job but fails to get one. These are the international standards for the unemployed population, and the survey conducted on this basis must be scientific and credible. The surveyed unemployment rates show that employment in the first three quarters was basically stable, and unemployment rate in September actually fell. You just asked why employment can be strong when the economy has slowed down.

First, I wonder if you noticed that according to the basic principles of macroeconomics, macro regulation comprises monetary policy and fiscal policy, however, in China, it also includes pro-employment policy. China's macro regulation actually consists of three policies. The Central Committee of the Communist Party of China (CPC) and the State Council have emphasized many times that employment is the foundation of people's livelihood and economic work should focus on improving people's livelihood and boosting employment. We have adopted a number of measures to stabilize employment and encourage enterprises to increase jobs. The pro-employment policy plays an active role. 

Second, returning to what I was saying earlier, the economic downturn does not mean that the endogenous power of China's economy is insufficient. China's endogenous power is still strong. Enterprises realize this and thought it was temporary, short-term and accidental. They firmly believe in the endogenous power of China's economy. In accordance with national policies, they have made efforts to stabilize employment. We have achieved a good effect because we stabilized people's expectations for economic growth.

China News Service:

My question is about PPI. Since this year, global commodity prices have risen overly quick. China's PPI set a new record high in September. In recent years, we have discovered a trend of the Purchasing Price Index of Raw Material (PPIRM) and the PPI being seriously inverted. What is the reason behind this? What do you think the impact of this will be on the economy? Thank you.

Yao Jingyuan:

As I mentioned earlier, the prices of bulk raw materials are rising. You mentioned that the PPI in September was up by 10.7%. What does this mean? It seemed very serious as it was a record high since 1995. I have explained that this is because commodity prices are rising worldwide. That is the most fundamental reason. China is a big importer and exporter, so it is bound to be transmitted to China. The industries seeing rising PPI are mainly upstream industries, such as coal, oil, natural gas, non-ferrous metals and ferrous metals. The upstream commodity prices are rising overly high and fast. You mentioned that it would lead to PPIRM and PPI being inverted. In other words, the downstream manufacturers are being forced to accept the prices that are rising overly high and fast. What situation do downstream manufacturers face currently? Generally speaking, there is still overcapacity in the market. In certain sectors, it is still buyers' market. Therefore, it is impossible for enterprises to pass on the higher prices of bulk raw materials to the market through end products, because if they do so, they may lose the market as the result of increased prices. In order to compete, they cannot raise their prices. However, this situation may somehow push them to strengthen management and push for technological progress in order to absorb the increased prices of upstream raw materials . But on the other hand, the PPI of upstream industries are rising so high and fast, so it is hard for enterprises to absorb it all in a short time. And this indeed make the downstream enterprises feel pressured when running their business. This was a structural issue we faced as China's economy went downward from the second quarter to the third quarter. 

So, what should we do now? First, we should ensure the supply and stable prices of upstream commodities. Some measures have been effective in certain sectors, such as with copper, which reached its highest-ever price in the second quarter. But, the price rises for copper, nonferrous metal and steel have now dropped. If we make great, solid efforts to ensure supply and stabilize prices as one of the key macro policies in the fourth quarter, we surely can help enterprises overcome the difficulties. In addition, I think we can also introduce some better measures to ensure supply and stabilize prices of upstream commodities and help downstream manufacturers overcoming difficulties with practical policies and measures. Thank you.

Cover News:

My question is regarding employment as well. What are your thoughts on the employment data in the first three quarters of this year? In addition, the unemployment rates of people aged 16-24 are going down month by month, but the rate is still at a high level — why is that? Will this situation improve in the future? Thank you.

Yao Jingyuan:

Where is the difficulty for employment? At present, there is a coexistence of recruitment difficulty and employment difficulty. I performed research in the Yangtze River Delta and the Pearl River Delta and found that quite a few companies are now having difficulty recruiting new workers. On the other hand, the unemployment rate for young people is relatively high. As I mentioned earlier, China's surveyed urban unemployment rate is 5.2%, and the unemployment rate among those aged 16-24 is significantly higher than the overall level. One reason is that there are 9.09 million college graduates this year, over 300,000 more than last year's figure of 8.74 million. This is not a small number. There is another reason: In a normal year, a considerable number of fresh graduates will study abroad, but this year they are mostly unable to study abroad. These students are now staying in the country, and a considerable number of them will look to gain employment. Therefore, the employment pressure for young people this year is very high. Of course, there are also structural problems in employment. More young people hope to find jobs in the modern services industry and are unwilling to work on production lines, which makes it difficult for manufacturing companies to recruit people. Therefore, combining the above reasons, a situation has occurred where the youth unemployment rate is higher than the average unemployment across society.

The CPC Central Committee and the State Council have clearly set the employment of college students as a key task. The Ministry of Education and other relevant departments have adopted many measures in relevant aspects. I think some policies will also be introduced in the future. Next, in the process of achieving the second centenary goal, China will take innovation as its primary driving force, and talented personnel are the primary resources. Talented young people are the main body of innovation, so it is necessary to provide more desirable positions for college graduates through structural adjustment and optimization, which can help solve the employment problem for them.

The Poster News APP:

Recently, China has been strengthening dual control of total energy consumption and energy intensity, and witnessing power supply shortages. How do you think these factors stand to impact China's economy? Another question: Some commentators believe that the dual control policy will have a greater impact on production and people's lives – on the one hand, rising upstream prices lead to high PPI; on the other, the upstream profit is squeezing the downstream takings, and state-owned enterprises are squeezing against private enterprises. What do you make of this problem? Thank you.

Yao Jingyuan:

First of all, I think the dual control policy is a correct move. Green development is our very important path for scientific development. We must unswervingly adhere to the five development concepts, namely innovation, coordination, green development, openness, and sharing. Achieving carbon peak and carbon neutrality is a solemn commitment made by China as a responsible major country, and it is also our contribution to building a community with a shared future for mankind.

We live in Beijing – what have Beijing's greatest achievements been in recent years? I personally believe that it is not how many buildings have been built, how many roads have been built, or how much the GDP has grown, but the changes in the environment. For example, in my home, we previously used several air purifiers. But in the past two years, especially this year, we haven't used our air purifiers once. This reflects how the air has improved; the sky is blue, and the land is green. This is the result of our implementation of new development concepts.

Of course, when growing the economy, we need to take some issues into account. For example, how to deal with the relationship between phased tasks and long-term goals, and which aspects should be considered to maintain a certain development speed? For example, growing the economy is like driving a car. The first step is to control the vehicle well. Where should the steering wheel turn toward? It should go toward the second centenary goal, toward the direction of high-quality development, and in terms of specific operations, one is the brake, and the other is the accelerator. Don't underestimate these two things – I think they are quite important. Therefore, macro-control is an art. For example, in the specific implementation process, some problems such as "campaign-style carbon reduction" do exist. These problems indicate that the relationship between steady economic growth and structural adjustment, transformation, and upgrading is not handled properly, and it is not fully understood that promoting high-quality development is a process. From this perspective, we must adhere to the green development concept in the next step. This guiding concept cannot be changed, but in the implementation process, we must well handle the relationship between ensuring steady growth and transforming the growth model and making structural adjustments, as well as some specific problems that occur in promoting high-quality development.

As the CPC Central Committee and the State Council have already made arrangements, and we have also summed up the experience and lessons of previous macro-controls, we can absolutely deal with this series of problems well. From this perspective, as we adhere to green development and use dialectical thinking to handle some of the current development issues, there will be no problem in maintaining steady and healthy growth of the Chinese economy.

China Daily:

Mr Xu, China's economy has been recovering steadily this year. We have also seen considerable growth in some new industrial products and consumer goods in foreign trade. It can also be seen from the third-quarter data from the National Bureau of Statistics this morning that the year-on-year growth of some industries such as innovation investment and new energy vehicles has also been considerable. Please comment on how you see the role these industries play in economic development. As you mentioned just now, the investment situation will face some pressure in the third and fourth quarters. What are your suggestions for the next step to encourage these industries to make greater contributions to economic growth? Thank you.

Xu Xianchun:

Thanks for your question. Indeed, despite considerable downward pressure on the economy, some new industrial products and new forms and models of business in the field of foreign trade continue to maintain relatively rapid growth.

In terms of new industrial products, driven by the acceleration of 5G construction, the growth of consumer electronics and automotive electronics demand, the improvement of industrial automation, and other factors, the output of new products maintained rapid growth. This morning, the spokesperson of the National Bureau of Statistics said that in the first three quarters, the output of new energy vehicles, industrial robots, and integrated circuits increased by 172.5%, 57.8%, and 43.1%, respectively, year-on-year, with an average growth rate of more than 28% in both years. In terms of new business forms and models in the field of foreign trade, some policies and measures have been implemented and are effective. New forms and models of foreign trade, represented by cross-border e-commerce, have injected new momentum into foreign trade. According to the data released by the General Administration of Customs, in the first three quarters of this year, China's cross-border e-commerce imports and exports increased by 20.1%, and market procurement exports increased by 37.7%.

In recent years, new economy drivers have played important roles in driving economic growth. Before the COVID-19 outbreak, economic growth showed a downward trend, but the rapid growth of new economy drivers played an important role in curbing the slowdown. During the serious outbreak of the epidemic, the economy declined, but new economy drivers still maintained rapid growth. The country's GDP fell by 6.8% in the first quarter of last year. However, the added value of information transmission, software, and information technology services increased by 13.2%, contributing 0.6 percentage points to GDP growth and playing an important role in slowing down the economic decline. New economy drivers have also played important parts in promoting economic recovery. In the first three quarters of this year, the added value of high-tech manufacturing above designated size increased by 20.1%, and the added value of information transmission, software, and information technology services increased by 19.3%. Online retail sales of physical goods also maintained rapid growth. Therefore, new economy drivers have played important roles in economic growth.

Going forward, we can consider promoting the development of new economy drivers in various ways.

First, we will actively promote the digital transformation of enterprises. I am leading a research team at the Tsinghua China Data Center to study new economy drivers. We have surveyed more than 70 enterprises of new business forms and models in 13 provinces and cities. We deeply understand how important digital transformation is to the survival and development of enterprises. All enterprises with successful digital transformation have realized digitization from product R&D and design, production and operation, sales to after-sales management, greatly improving their ability to adapt to the market as well as improving production and operation efficiency and reducing production and operation costs. Those enterprises whose digital transformation was unsuccessful or has just started are facing a series of difficulties and problems. Therefore, we believe that digital transformation is very important. General Secretary Xi Jinping attached great importance to digital transformation, pointing out that “The global economy is embracing the trend of digital transformation, and the new round of industrial revolution will reshape human society in profound ways.” Digital transformation is very important, and we should actively promote the digital transformation of enterprises.

Second, we should strengthen support for research and development (R&D) and innovation, strive to achieve breakthroughs in key and core technologies, and actively cultivate new points of economic growth. As the traditional driving force weakens, new ones must be replenished through R&D and innovation. This is of great importance to economic growth.

Third, we should continue to improve the business environment and policy system. The business environment is of vital importance to a country or a region. A better business atmosphere and policy system can help boost the development of new market entities and enhance China's economic resilience.

Fourth, we should continue to consolidate the cluster-based, informatized and smart development of new products, for example, New Energy Vehicles (NEVs), industrial robots and integrated circuits, so as to pursue high-quality economic development.

Fifth, we should continue to support the development of new industries and new business types and models including overseas warehouses, cross-border e-commerce and industrial networks. We must help connect each link of domestic and global supply chains. There are still more growth points in foreign trade. Broad growth potentials exist for services in the fields of software and information technology, travel, finance and insurance, education and elderly care. Take elderly care as an example. China's population ageing is deepening, putting a lot of pressure on elderly care. Therefore, advanced ideas and practices in some foreign countries can be drawn upon to cope with our domestic challenges. A lot of work can be done in foreign trade, which will not only boost foreign trade but also promote domestic economic development and social progress.

South China Morning Post (SCMP): 

Recently, there are some concerns that the risk of stagflation is rising in China. What do you make of that?

Yao Jingyuan:

First of all, the concept of stagflation began in the United States in the 1970s. According to the previous economic theory, too much inflation means an economy is overheated. If an economy slows down, there will be no inflation. This, Keynes's general theory, is an old theory. But stagflation swept America and Europe in the 1970s. What does stagflation mean? It means on one hand, the economy is slipping sharply and even retracting. On the other hand, prices will rise rapidly. I don't think that China should worry about it. I have just mentioned that many people showed concerns over possible inflation in the end of last year and the beginning of this year. However, the problem we are facing now is to stabilize food prices. Take pork prices as an example. It was 80 yuan per kilogram two year ago, but it is 18 yuan per kilogram now. If pork prices continue to drop, the pig farming industry will suffer. Therefore, efforts should be made in strengthening government stockpiling to stabilize prices. This will counter the risk of high inflation, particularly hyperinflation, in China. Moreover, from the principles of economics, inflation is basically a kind of monetary phenomenon, meaning more money chasing less products. I believe that from a monetary policy perspective, the deposit-reserve ratio can be lowered appropriately and one point down will release 1 trillion yuan in financial liquidity. I found during my investigation at the grassroots level that, generally, business liquidity is sort of under pressure.

And for China's economy, internal driving forces have worked well. For example, people's top worry now is whether the economic growth rate can remain stable in the fourth quarter of this year and the first half of next year. How to gauge these predictions? The key is the "three horses of troika" for economic growth, namely export, consumption, and investment. I don't know if you have noticed, but the Central Economic Work Conference added a phrase for each item. Export plays a role in "driving" economic growth, which means it drives the troika forward. I think there is no problem with this in regard to the fourth quarter. Consumption plays a "basic" role in economic growth. At present, consumption was hit hardest by the COVID-19 outbreak. Due to epidemic prevention and control, many consumer-intensive means of consumption such as the tourism, catering, and film industries have been heavily impacted. Therefore, consumption activities will gradually recover with our effective epidemic-control efforts. Now, data for September is better than August, and consumption and recovery are expected to continue. According to the Central Economic Work Conference, investment plays a "key" role in stimulating growth. I believe that the decline in economic growth is directly related to investment. As we all know, investment is divided into three parts: industrial investment, property investment, and infrastructure investment. In the first three quarters, the country's investment grew by 7.3% year-on-year, while the slowest sector — infrastructure investment — was up by 1.5% year-on-year, an average two-year growth of 0.4%. Infrastructure investment has increased rapidly over the past few decades and is now falling back to 1.5%, so this is a big problem. I think in the fourth quarter, and next year, we should give full play to the key role of investment in stabilizing growth, with infrastructure investment as its decisive factor. Then what can we do? As Mr. Xu mentioned in the beginning, the 14th Five-Year Plan laid out plans for 102 major projects during the period, which had undergone sufficient assessment. All these projects should start work as soon as possible in the fourth quarter and next year to form a real physical workload, which will greatly boost investment. In my point of view, some projects should come into operation earlier if possible.

In addition, Mr. Xu just pointed out that special local government bonds worth 1.8 trillion yuan were issued as of August, accounting for only half of the annual issuance quota of 3.65 trillion yuan. By this time in previous years, the proportion had almost reached 90%. Thus, we need to speed up the issuance of the remaining 1 trillion yuan-plus worth of bonds so that the construction of major projects in local areas will begin, and the real physical workload can be formed, all of which will significantly promote economic development.

In terms of prices, the CPI rose by an average of just 0.6% between January and September, with an estimated annual increase of about 1%. The low and stable price increase has given room for monetary policy. On the other hand, fiscal policy also has a lot of room. From January to August, the national general public budget revenue increased by 18.4%, while the general public budget expenditure increased by 3.6%, indicating that there is still considerable room between fiscal revenue and expenditure. We can therefore increase fiscal expenditure and adjust and improve its composition to strengthen areas of weakness. For instance, the auto industry's current weakness is its chip shortage, and for the shipping industry is the lack of containers. In fact, China has advantages in those respects — the world's largest container manufacturers are here. As a result, the fiscal policy can give more assistance to these weak links. From this point of view, we can reinforce our confidence in the internal drivers of China's economy and our capability to cope with this downward pressure.

Regarding macro regulation, we should sum up the past experience. Actually, we have the ability to step on this "gas pedal" to accelerate it. From the Asian financial crisis in 1998 to the world financial crisis in 2008, until now, we have learned lessons from a wealth of historical experiences. According to the data released by the National Bureau of Statistics today and the introduction of Mr. Fu Linghui this morning, we can see the general condition of the Chinese economy. Of course, we also need to be aware of the problems and their phased, structural, and cyclical nature. Although the reasons are complex, we have the means and capability to stabilize the economic situation, and give further role of the internal forces driving China's economy. The country's economy will still maintain healthy and better growth and is expected to expand 8% this year, which will certainly rank first among major economies around the world.

Xing Huina:

Thanks to our two experts. If there are no other questions, today's briefing is hereby concluded. Thank you, friends from the media!

Translated and edited by Zhang Liying, Yuan Fang, Zhu Bochen, Yang Xi, Li Huiru, Duan Yaying, Gao Zhan, Chen Xia, Wang Mengru, Liu Sitong, Zhang Junmian, Zhang Rui, Xiang Bin, Zhou Jing, Liu Qiang, Zhang Tingting, Ma Yujia, Zheng Chengqiong, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speaker:

Fu Linghui, spokesperson of the National Bureau of Statistics and director general of the Department of Comprehensive Statistics of the National Bureau of Statistics

Chairperson:

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

Date:

Oct. 18, 2021

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 are joined by Mr. Fu Linghui, spokesperson of the National Bureau of Statistics and director general of the Department of Comprehensive Statistics of the National Bureau of Statistics. Mr. Fu will brief you on China's economic performance in the first three quarters of 2021 and then take your questions.

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

Fu Linghui:

Friends from the media, good morning. As usual, I will start by briefing you on economic performance in the first three quarters of the year and then take your questions.

In short, China's economy continued its stable recovery in the first three quarters of the year.

In the first three quarters of the year, in face of the complex and challenging conditions both at home and abroad, all regions and departments have worked under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core and earnestly implemented the decisions and deployments made by the CPC Central Committee and the State Council. By coordinating epidemic control with economic and social development in a scientific manner, enhancing the cross-cyclical adjustment of macro policies, and effectively coping with the epidemic and floods, China's economy continued to recover. The main macro indicators stayed in an appropriate range. The employment situation was generally stable, and people's income continued to increase. China's international payments remain balanced, while its economic structure was optimized. The quality and efficiency of China's economic performance saw steady growth with the society remaining harmonious and stable.

According to preliminary estimates, the gross domestic product (GDP) in the first three quarters amounted to 82.31 trillion yuan, up 9.8% year on year at comparable prices, with an average two-year growth of 5.2%, a 0.1 percentage point lower than the average two-year growth of the first half of 2021. By quarter, the GDP for the first quarter increased by 18.3% year on year, with an average two-year growth of 5%; for the second quarter 7.9% year on year, with an average two-year growth of 5.5%; and for the third quarter 4.9% year on year, with an average two-year growth of 4.9%. By industry, for the first three quarters, the value added of the primary industry reached 5.14 trillion yuan, up 7.4% year on year, or an average two-year growth of 4.8%. That of the secondary industry was 32.09 trillion yuan, up 10.6% year on year, or an average two-year growth of 5.7%. And that of the tertiary industry amounted to 45.08 trillion yuan, up 9.5% year on year, or an average two-year growth of 4.9%. The GDP for the third quarter increased by 0.2% quarter on quarter.

First, agricultural production showed good growth momentum, and the production of animal husbandry grew fast.

In the first three quarters, the value added of agriculture (crop farming) increased by 3.4% year on year, with an average two-year growth of 3.6%. The total output of summer grain and early rice amounted to 173.84 million tons (347.7 billion jin), 3.69 million tons (7.4 billion jin) more than that of last year, up 2.2%. The sown area for autumn grain remained stable with an increase. Of the total, the sown area for corn increased considerably; major crops for autumn grain grew well and another bumper harvest is on the horizon. In the first three quarters, the output of pork, beef, mutton, and poultry reached 64.28 million tons, up 22.4% year on year. Of the total, the output of pork, mutton, beef and poultry increased by 38%, 5.3%, 3.9% and 3.8% year on year respectively. The output of milk went up by 8%, and that of eggs decreased by 2.4%. At the end of the third quarter, the number of pigs registered was 437.64 million, up 18.2% year on year, among which 44.59 million were breeding sows, up 16.7%.

Second, industrial production continued to increase, and business efficiency improved steadily.

In the first three quarters, the total value added of industrial enterprises above the designated size increased by 11.8% year on year, with an average two-year growth of 6.4%. In September, the total value added of industrial enterprises above the designated size went up by 3.1%, with an average two-year growth of 5%; an increase of 0.05% month on month. In terms of sectors, in the first three quarters, the value added of mining increased by 4.7%, that of manufacturing increased by 12.5%, and the production and supply of electricity, thermal power, gas and water increased by 12%. The value added of high-tech manufacturing increased by 20.1% year on year, with an average two-year growth rate of 12.8%. In terms of products, in the first three quarters, the production of new energy vehicles (NEVs), industrial robots and integrated circuits increased by 172.5%, 57.8% and 43.1%, with the average two-year growth of all exceeding 28%. By types of ownership, in the first three quarters, the value added of state holding enterprises increased by 9.6% year on year; that of share-holding enterprises was up by 12%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan increased by 11.6%; and that of private enterprises increased by 13.1%. In September, the Manufacturing Purchasing Managers' Index (PMI) hit 49.6%, of which the PMI of high-tech manufacturing was 54%, a 0.3 percentage point higher than that of last month. The Production and Operation Expectation Index stood at 56.4%.

In the first eight months, the profit made by industrial enterprises above the designated size totaled 5.61 trillion yuan, up 49.5% year on year, or an average two-year growth of 19.5%. The profit rate of the business revenue of industrial enterprises above the designated size stood at 7.01%. This represents an increase of 1.2 percentage points year on year.

Third, the service sector saw steady recovery, and modern service industry showed good growth momentum.

The tertiary industry continued to grow in the first three quarters. Specifically, in the first three quarters, the value added of information transmission, software and information technology services increased by 19.3%. That of transportation, storage and postal services increased by 15.3%, with an average two-year growth of 17.6% and 6.2% respectively. In September, the service production index increased by 5.2%, a 0.4 percentage point higher than that in August, with an average two-year growth of 5.3%, a 0.9 percentage point higher. In the first eight months, the business revenue of service enterprises above the designated size increased by 25.6% year on year, with an average two-year growth of 10.7%.

In September, the Business Activity Index for Services stood at 52.4%, 7.2 percentage points higher than that in August. Specifically, the Business Activities Index for industries hit hard by the epidemic and floods in August, such as railway transportation, air transportation, accommodation, catering, ecological protection and environment treatment, rebounded significantly to the level above the threshold. From the perspective of market expectations, the Business Activity Expectation Index for services was 58.9%, 1.6 percentage points higher than that in August. Of the total, the Business Activity Expectation Index for sectors like railway transportation, air transportation and express mail service exceeds 65%.

Fourth, market sales continued to grow, with sales of upgraded consumer goods and basic living goods increasing fast.

In the first three quarters, the total retail sales of consumer goods reached 31,805.7 billion yuan, up by 16.4% year on year, with an average two-year growth of 3.9%. In September, the total retail sales of consumer goods reached 3,683.3 billion yuan, up by 4.4% year on year, 1.9 percentage points higher than that of August, or an average two-year growth of 3.8%, 2.3 percentage points faster than that in August, and an increase of 0.30% month on month. In terms of sales in different regions, retail sales of consumer goods in urban areas in the first three quarters reached 27,588.8 billion yuan, up by 16.5% year on year, or an average two-year growth of 3.9%. Meanwhile, sales in rural areas rose by 15.6% year on year to 4,216.9 billion yuan, with an average two-year growth of 3.8%. Grouped by consumption patterns, retail sales of goods in the first three quarters was 28,530.7 billion yuan, up by 15.0% year on year, or an average two-year growth of 4.5%, and the revenue from catering was 3,275 billion yuan, up by 29.8% year on year, or an average two-year decline of 0.6%. Grouped by categories, retail sales among enterprises above the designated size of upgraded consumer goods like gold, silver, and jewelry, sports and recreational goods, and office supplies in the first three quarters grew 41.6%, 28.6%, and 21.7% year on year, respectively; and basic living goods like beverages, clothes, shoes, hats, and textiles, and daily necessities went up by 23.4%, 20.6%, and 16.0% year on year, respectively. In the first three quarters, online retail sales reached 9,187.1 billion yuan, up by 18.5% year on year. Specifically, online retail sales of physical goods totaled 7,504.2 billion yuan, up by 15.2% year on year, accounting for 23.6% of the total retail sales of consumer goods.

Fifth, investment in fixed assets scaled up, and investment in high-tech industries and the social sector grew fast.

In the first three quarters, the investment in fixed assets (excluding rural households) reached 39,782.7 billion yuan, up by 7.3 % year on year, an average two-year growth of 3.8%, or a month-on-month growth of 0.17% in September. Specifically, investment in infrastructure in the first three quarters went up by 1.5% year on year, an average two-year growth of 0.4%; manufacturing increased by 14.8% year on year, an average two-year growth of 3.3%; and real estate development increased by 8.8% year on year, an average two-year growth of 7.2%. The floor space of commercial buildings sold reached 1,303.32 million square meters, up by 11.3% year on year, an average two-year growth of 4.6%. The total sales of commercial buildings reached 13,479.5 billion yuan, up by 16.6% year on year, an average two-year growth of 10.0%. By industry, the investment in the primary industry in the first three quarters went up by 14.0% year on year; the secondary industry increased by 12.2% year on year; and the tertiary industry grew by 5.0% year on year. Private investment went up by 9.8% year on year, an average two-year growth of 3.7%. Investment in high-tech industries grew by 18.7% year on year, an average two-year growth of 13.8%. Specifically, investment in high-tech manufacturing and high-tech services grew by 25.4% and 6.6% year on year, respectively. In terms of high-tech manufacturing, investment in the manufacturing of computers and office devices and in the manufacturing of aerospace vehicles and equipment grew by 40.8% and 38.5% year on year, respectively. In terms of high-tech services, investment in e-commerce services and in testing services went up by 43.8% and 23.7% year on year, respectively. Investment in social sectors went up by 11.8% year on year, with an average two-year growth of 10.5%. Specifically, investment in health and education went up by 31.4% and 10.4% year on year, respectively.

Sixth, imports and exports of goods grew fast and the trade structure continued to improve.

In the first three quarters, the total volume of imports and exports of goods was 28,326.4 billion yuan, up by 22.7% year on year. Specifically, the volume of exports was 15,547.7 billion yuan, up by 22.7%, and that of imports was 12,778.7 billion yuan, up by 22.6%. The trade balance was 2,769.1 billion yuan in surplus. In September, the total volume of imports and exports of goods was 3,532.9 billion yuan, a year-on-year increase of 15.4%. Specifically, the volume of exports was 1,983.0 billion yuan, up by 19.9%, and that of imports was 1,549.8 billion yuan, up by 10.1%. In the first three quarters, exports of mechanical and electrical products grew by 23% year on year, 0.3 percentage point higher than the overall export growth rate, accounting for 58.8% of the total exports. The imports and exports of general trade accounted for 61.8% of the total volume of imports and exports, 1.4 percentage points higher than the same period last year. The imports and exports by private enterprises grew by 28.5% year on year, accounting for 48.2% of the total volume of imports and exports.

Seventh, consumer prices increased mildly, and producer price index expanded more quickly.

In the first three quarters, the consumer price index (CPI) went up by 0.6% year on year, 0.1 percentage point higher than in the first half of this year. Specifically, the CPI in September went up by 0.7% year on year, 0.1 percentage point lower than that in August, and even month on month. In the first three quarters, the CPI rose by 0.7% in urban areas and 0.4% in rural areas. Grouped by categories, in the first three quarters, prices of food, tobacco, and alcohol fell by 0.5% year on year; clothing increased by 0.2%; housing increased by 0.6%; articles of daily use and services increased by 0.2%; transportation and communication increased by 3.3%; education, culture, and recreation increased by 1.6%; medical services and health care increased by 0.3%; and other articles and services fell by 1.6%. Among food, tobacco, and alcohol, the price of pork fell by 28.0%, grain increased by 1.0%, fresh vegetables increased by 1.3%, and fresh fruits increased by 2.7%. In the first three quarters, core CPI, excluding prices of food and energy, went up by 0.7%, an increase of 0.3 percentage point compared with that of the first half of this year.

In the first three quarters, the producer price index (PPI) went up by 6.7%, an increase of 1.6 percent compared with that of the first half of this year. Specifically, the PPI in September went up by 10.7% year on year, or 1.2% month on month. In the first three quarters, the purchasing price index for industrial producers went up by 9.3% year on year, an increase of 2.2 percentage points from the first half of this year. Specifically, the purchasing price index in September went up by 14.3%, or up by 1.1% month on month.

Eighth, employment was basically stable, and the urban surveyed unemployment rate steadily fell.

In the first three quarters, urban areas created 10.45 million new jobs , achieving 95% of this year's target. In September, the urban surveyed unemployment rate was 4.9%, 0.2 percentage point lower than that in August, or 0.5 percentage point lower than that in the same period last year. The surveyed unemployment rate of the population with local household registration was 5%, and that among populations with non-local household registration was 4.8%. The surveyed unemployment rates among populations aged 16 to 24 and 25 to 59 were 14.6% and 4.2%, respectively. The urban surveyed unemployment rate in 31 major cities was 5%, 0.3 percentage point lower than that in August. Enterprise employees worked 47.8 hours per week on average, up by 0.3 hours compared with that in August. At the end of the third quarter, migrant workers from rural areas totaled 183.03 million, up by 0.7 million compared with that at the end of the second quarter.

Ninth, per capita disposable income generally increased in step with GDP growth, and the urban-rural disposable income ratio narrowed. 

The per capita disposable income stood at 26,265 yuan ($4,085) in the first three quarters, up 10.4% from the same period last year in nominal terms, with an average two-year growth of 7.1%. After deducting price factors, per capita disposable income rose 9.7% year-on-year, with an average two-year growth of 5.1%, which is basically in step with GDP growth. Separately, urban per capita disposable income came in at 35,946 yuan, up 9.5% in nominal terms, and 8.7% in real terms, while income in rural areas stood at 13,726 yuan, up 11.6% in nominal terms, and 11.2% in real terms. By income source, the per capita income from wages and salary, net business income, net property income and net transfer income saw year-on-year growth of 10.6%, 12.4%, 11.4% and 7.9% in nominal terms, respectively. The urban-rural disposable income ratio was 2.62, down 0.05 percentage point compared with the same period last year. The per capita disposable income of residents stood at 22,157 yuan, up 8% year-on-year in nominal terms. 

Overall, the Chinese economy has maintained its recovery momentum in the first three quarters with progress in structural adjustments and high-quality development. However, there are rising uncertainties in the international environment and uneven recovery in the domestic economy. Next, we will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the decisions made by the CPC Central Committee and the State Council, uphold the underlying principle of pursuing progress while ensuring stability, fully, accurately and comprehensively implement the new development philosophy, accelerate the building of a new development paradigm, work with regular epidemic control measures in place, strengthen cross-cycle policy adjustment, make great efforts to promote sustained and sound economic development, deepen reform, opening-up and innovation, unleash market vitality, generate greater momentum for development, unleash the potential of domestic demand to keep the economy running within a reasonable range and ensure the year's main targets for economic and social development are accomplished. Thank you.

Shou Xiaoli:

Thank you, Mr. Fu. Now the floor is open to questions, please identify your media outlet before raising questions.

CCTV:

According to the statistics just released, the economic growth of the third quarter is slower than the second quarter. What are the main reasons for the decrease? How do you comment on the third quarter's overall economic performance? Thank you. 

Fu Linghui:

Thank you for your questions. Your questions are very important. During the first half of the year, the Chinese economy maintained a stable recovery. In the third quarter, there have been rising risks and challenges at home and abroad. The pandemic is spreading around the world, the momentum of global recovery slowed, commodity prices in the international market remained high, some regions in China, hit by the pandemic and floods, felt the pressure of economic transformation and adjustments. Facing the complicated situation, under the strong leadership of the CPC Central Committee, local authorities and government departments coordinated efforts between epidemic prevention and control and economic and social development, and effectively implemented macro policies to keep the recovery's momentum. Major macro indicators stayed within a reasonable range, the job market remained generally stable, people's lives continued to improve, steady progress was achieved in structure adjustments, and the quality and returns of growth continued to improve, which has laid a good foundation for achieving the year's economic and social development targets. I will elaborate on this in the following respects: 

First, major macro indicators stayed within a reasonable range, and the recovery momentum continued. The economy continues to grow. Due to the high baseline of the same period last year and the impact of COVID-19 and floods, the economic growth of the first three quarters slowed compared with the same period last year. However, the growth rate continued to rise compared with previous quarters and the two-year average growth rate remained fast. The country's gross domestic product expanded 9.8% year on year in the first three quarters, higher than the target of 6%. In the third quarter, the country's GDP grew 4.9% year-on-year, the quarter-on-quarter GDP for the third quarter increased by 0.2%, with an average two-year growth of 4.9%. The job market remained generally stable. The economy continued to recover, the employment-first policy produced effects, the employment scale expanded, and the employment of key groups such as college graduates, veterans, rural migrant workers and urban people facing difficulties was guaranteed. During the first nine months of this year, the country created 10.45 million new jobs in its urban areas, achieving 95% of the annual target. China's surveyed urban unemployment rate stood at 5.2%, lower than the year's target of 5.5%. By the end of the third quarter, the number of rural migrant workers totaled 183.03 million, up 2% year on year, almost returning to pre-pandemic levels. The consumer price went up mildly. Agricultural production showed good momentum, hog production rebounded, the industrial service sector continued to grow, there was a large supply of basic living amenities, and the consumer price remained stable. In the first three quarters, the consumer price went up by 0.6% year on year, lower than the target of 3%. The international payments continued to improve. In terms of trade in goods, the trade surplus in the first three quarters expanded 23.7% year on year. In terms of trade in services, China's imports of tourism services decreased, and exports of modern services increased. The deficit of trade in services from January to August narrowed 66.7% year on year. Foreign exchange reserves were $3.2 trillion at the end of September, staying above $3 trillion for five consecutive months. 

Second, the economic structure was adjusted and improved, while the quality and efficiency of development were enhanced. First of all, the industrial structure continued to be optimized. The proportion of the manufacturing industry has increased, and the high-tech manufacturing industry has grown rapidly. In the first three quarters, the proportion of manufacturing value added was 27.4%, up by 1.1 percentage points over the same period last year. The value added of high-tech manufacturing enterprises above designated size increased by 20.1% year on year, faster than all industrial enterprises above designated size. The contribution rate of the service industry has increased. In the first three quarters, the contribution rate of the service industry growth to economic growth was 54.2%, up by 1.2 percentage points over the first half of the year. Second, the demand structure continues to improve. The contribution rate of final consumption has increased. In the first three quarters, the final consumption contribution rate was 64.8%, up by 3.1 percentage points over the first half of the year. Upgraded consumption and investment in high-tech industries grew rapidly. In the first three quarters, the retail sales of sports and entertainment products and cultural and office goods both increased by more than 20% year on year, and investment in high-tech industries increased by 18.7% year on year. Third, green development continued to improve. Energy consumption per unit of GDP continued to decline. In the first three quarters, energy consumption per unit of GDP fell by 2.3% year on year, up 0.3 percentage point over the first half of the year. The overall environmental quality has improved, and the people enjoy a greener environment. From January to August, the average PM2.5 concentration of 339 cities at and above the prefectural level across the country fell by 6.5% year on year. Fourth, corporate profits have grown rapidly. From January to August, the profits of industrial enterprises above designated size have increased by 49.5% year on year, and the profits of service enterprises above designated size have increased by 35.7%.

Third, the reform and opening-up continued to be promoted, and new drivers of growth continued to increase. First, the results of supply-side structural reform continued to be consolidated. In the third quarter, the utilization rate of industrial capacity was 77.1%, which was a relatively good level compared with the same period in recent years. The asset-liability ratio of enterprises fell. At the end of August, the asset-liability ratio of industrial enterprises above designated size was 56.4%, a year-on-year decrease of 0.4 percentage point. Enterprise revenue costs fell. From January to August, the cost per 100 yuan of operation revenue of industrial enterprises above designated size was reduced 0.65 yuan compared with the same period last year. The effect of shoring up weaknesses was obvious. In the first three quarters, investment in education and health increased by 10.4% and 31.4% year on year, respectively, faster than the growth of total investment. Second, opening-up was further expanded. China's import and export trade continued to maintain rapid growth. In the first three quarters, the total value of imports and exports of goods increased by 22.7% year on year. Utilization of foreign capital continued to increase. From January to August, China's foreign investment in actual use increased by 22.3% year on year. The joint construction of the Belt and Road has been steadily promoted. In the first three quarters, China's total imports and exports to countries along the Belt and Road increased by 23.4% year on year; and the total number of China-Europe freight trains exceeded 10,000, up by 29% year on year. Third, new energy has grown rapidly. Investment in innovation continued to increase, and green, low-carbon smart products continued to emerge. In the first three quarters, the output of new energy vehicles and industrial robots increased by 172.5% and 57.8% year on year, respectively. Information technology has been widely applied, and new business forms and models such as livestreaming commerce and the platform economy have rapidly emerged. In the first three quarters, the online retail sales of physical commodities increased by 15.2% year on year, accounting for 23.6% of total retail sales of consumer goods.

Fourth, the incomes of residents continued to grow, and people's livelihoods have been effectively ensured. First, the incomes of residents continued to increase. The economy continued to recover, enterprise revenue improved, and employment has been generally stable, which have helped increase residents' incomes. In the first three quarters, the national per capita disposable income nominally increased by 10.4% year on year, and the actual growth rate was 9.7% after deducting price factors, which was basically in line with economic growth. In terms of urban and rural areas, the income of rural residents grew faster than that of urban residents. In the first three quarters, the nominal growth rate of rural residents' income was 2.1 percentage points faster than urban residents. Second, the prices of commodities related to residents' lives have stabilized and declined. Agricultural production was generally good, hog production continued to recover, food and other related commodities were in sufficient supply, and residents' lives were better guaranteed. In the first three quarters, food prices fell by 1.6% year on year, of which pork prices fell by 28% and grain prices rose by 1%. Third, guarantees of people's livelihood continued to be strengthened. Government public services continued to improve, and residents' welfare and transfer income increased. From January to August, among the general public budget expenditures across the country, expenditures on education and housing increased rapidly. In the first three quarters, the national per capita transfer income increased by 7.9% year on year, and the two-year average growth rate was 8.4%.

All these show that the fundamentals of China's long-term economic growth continue to be present, and the characteristics of strong development resilience, great potential, and broad wiggle room are obvious. However, we must notice that the international environment is unstable with many uncertainties, the domestic economic recovery is still unstable and uneven, and the challenge of maintaining the economy's stable operation has increased. In the next stage, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, we must fully, accurately and comprehensively implement the new development philosophy, build a new development pattern, implement the macroeconomic policy cross-cyclical adjustments, promote stable economic recovery and maintain economic operations within a reasonable range. Thank you.

South China Morning Post:

Measures of power rationing and production suspension are currently being enforced in many places. Some companies and industry associations said that they have also been affected. Therefore, many institutions have subsequently lowered expectations of China's economic growth this year. My question is that what's the NBS's opinion on this situation? How to evaluate the impact of those specific measures on economic growth? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, international energy prices have risen sharply and prices of coal, natural gas, and crude oil have repeatedly hit new highs, making domestic power and coal supplies tight. Various factors led to recent power rationing in some places, which has affected normal production to a certain extent. Therefore, the CPC Central Committee and the State Council have defined a comprehensive plan and set clear requirements for energy production and supply. Relevant departments have implemented the decisions and released a series of measures to reform and ensure supply and price stability. After these measures came into effect and are producing positive results, the tight coal and power supply situation will be eased, and will have less constraints on China's economic performance. Judging from the situation in September, the growth rate of power production has accelerated. In general, the tight energy supply is temporary, and its impact on the economy is controllable. Thank you.

Cover News:

We noticed that employment maintained stable this year and the unemployment rate indicators have improved. What's the reason for this situation? How will the country's employment develop amid the increasing pressure for economic growth? Thank you.

Fu Linghui:

Thank you for your very important question. Employment is the foundation of people's well-being and development. The government attaches great importance to employment and continues to stabilize and expand it. With economic recovery this year, the employment-first policy worked effectively, and the growth in new jobs in urban areas is expanding. Meanwhile, the urban surveyed unemployment rate was stable with moderate decline, and the overall employment maintained stable. In the first three quarters of this year, newly employed people in urban areas totaled 10.45 million, achieving 95% of the annual target. The average surveyed urban unemployment rate is 5.2%, slightly lower than the 5.5% annual control target. In September, the urban surveyed unemployment rate was 4.9%, 0.2 percentage point lower than in August.

In the first three quarters of this year, the employment situation presented the following features. First, the overall employment situation has improved. The urban surveyed unemployment rate came in at 5.1%, 5.1% and 4.9% in July, August and September, respectively. The urban surveyed unemployment rate was stable with a moderate decline. The urban surveyed unemployment rate in 31 major cities was 5.2%, 5.3%, and 5% in July, August and September, respectively, showing steady improvement. Second, employment of the prime age group has been basically stable. The urban surveyed unemployment rate of the 25 to 59 age group was 4.2%, 4.3%, and 4.2% in July, August and September, respectively. The unemployment rate was lower and stable. Third, the employment of key groups has improved. Employment of college graduates increased, and youth unemployment fell. The surveyed unemployment rates of the population aged from 16 to 24 were 16.2%, 15.3% and 14.6% in July, August and September, respectively, falling month by month. We have continued to work to ensure employment for rural migrant workers, and their employment situation continued to improve. At the end of the third quarter, the total number of rural migrant workers increased 2% year on year, returning to the level in the same period of 2019 before the COVID-19 pandemic. The unemployment rate of rural migrant workers fell slightly in the third quarter.

In the first three quarters of this year, the employment situation has maintained a stable performance. The main reasons are: first, China's economy continued stable recovery, creating jobs. The gross domestic product (GDP) in the first three quarters increased 9.8% year on year, with an average two-year growth of 5.2%. The expansion of the national economy inevitably increased labor inputs and created jobs. Second, China's service industry continued its stable recovery to increase employment opportunities. The service industry has been expanding, and employment capacities have further grown. In September, the growth of the service industry accelerated, which was conducive to the improvement of employment. In September, the Index of Services Production grew by 5.2% year on year, 0.4 percentage point higher than that in August. The index of employment of the service industry's Purchasing Managers' Index (PMI) is 0.5 percentage point higher than that of August. Third, the employment-first policy has continued to produce positive results. The employment of key groups, including college graduates and rural migrant workers, improved, keeping the urban surveyed unemployment rate stable with moderate decline. Youth unemployment fell in the third quarter of this year. We have strengthened measures to create more jobs through business startups and strengthen vocational training to improve employment. Fourth, the platform economy and flexible employment have provided more employment opportunities. New business models are developing fast and will increase the need for new jobs. Since this year, the rapid development of livestream marketing and online shopping has also driven the increase of employees in relevant industries.

However, it should also be noted that the total pressure on employment and structural contradictions still exist, the unemployment rate of some groups remains high, and there are still job shortages in some coastal areas, so we need to continue our efforts to maintain stable employment. We need to continue to make cross-cycle adjustments to macro policies, promote steady economic recovery, and create favorable conditions for employment. We will implement the employment-first policy, strengthen employment services for key groups of college students and migrant workers, increase vocational skills training, promote the effective connection between supply and demand in the labor market, and promote stable and positive employment. Thank you.

CNBC:

Some recent data on real estate investment showed a decline in August and September. What impact has the recent real estate situation had on economic growth? How has it affected consumption? Thank you.

Fu Linghui:

Thank you for your questions. People also pay close attention to issues in real estate. The real estate industry is not only an important part of the national economy, but is also closely related to the lives of residents. In recent years, in accordance with the requirements of the central government, all regions and departments have adhered to the principle of "no speculation in housing," continued to stabilize land prices, house prices and expectations, effectively prevented and resolved potential risks, and promoted the steady and healthy development of the real estate market.

Since this year, by improving the long-term mechanism of the real estate market, curbing unreasonable demand, promoting the stable release of rigid demand, and restricting some real estate enterprises from blindly expanding by borrowing, the real estate market has generally stabilized, and real estate investment, sales and house prices have gradually stabilized. In the first three quarters of this year, the sales area of commercial housing increased by 11.3% year on year, with a two-year average growth rate 4.6%, down 1.3 percentage points than that for January to August. Investment in real estate development rose 8.8% year on year, with a two-year average growth of 7.2%, 0.5 percentage point lower than in the January-August period. In July and August, the growth rates of housing prices in 70 big and medium-sized enterprises were generally declining.

In the next stage, the real estate market is expected to maintain steady development with the continuous improvement of the housing system for both purchases and rentals and as market entities become more rational. 

As for the impact of real estate on economic growth, in the first three quarters of this year, the two-year average growth rate of the added value of real estate was 4.8%, which was 1.3 percentage points lower than that of the first half of this year. On the whole, the impact has been limited. Thank you.

Bloomberg News: 

I have two questions. The first one is: Can you give us some breakdown for the contribution from the exports, capital formation and consumption. The second one is: You said that the policies would have an effect on coal output. Are you seeing an increasing coal output in October from September, because coal output fell while electricity demand rose in September, so that situation doesn't reverse. The power shortage is going to get worse in October. So has it already set to improve or is that going to happen in the future?

Fu Linghui:

Thank you for your questions. I can give you some data on the contribution of the three major demands to growth. In the first three quarters, the contribution rate of final consumption expenditure to economic growth was 64.8%, the contribution rate of total capital formation was 15.6%, and the contribution rate of net exports of goods and services was 19.5%.

As for coal production, it should be noted that the coal market supply was tight due to affected release of some production capacity. The central government attaches great importance to this. Recently, relevant departments have issued a series of measures to stabilize and increase coal supply and production. It is believed that the tight situation will be gradually improved. Thank you.

CNR:

We know that the prices of other goods will only be stable when grain prices are stable, but recently, Shanxi province suffered serious floods. Will this have an impact on national grain production this fall? What do you think of the agricultural production situation since this year? Thank you.

Fu Linghui:

Thank you for your questions. Agriculture is indeed of great concern and is the fundamental industry of the national economy. The central government attaches great importance to agricultural development. Since this year, various parties have taken measures to support stable and increased agricultural production and maintain the safety of grain production. In the first three quarters, the overall situation of China's agricultural economy was relatively good.

First, the scale of agricultural production continued to expand. Thanks to various policies and measures to support agricultural development, the added value of China's agriculture, forestry, animal husbandry and fishery grew by 7.4% year on year in the first three quarters, with a two-year average growth of 4.9%, which was 0.6 percentage points faster than in the first half of the year. In the third quarter, the two-year average growth rate of the added value of agriculture, forestry, animal husbandry and fishery was 5.5%, contributing more than 10% to China's economic growth.

Second, grain production shows good momentum. Although severe natural disasters took their toll on crops in some regions, weather conditions were generally favorable for agricultural production across the country, and field management and disaster alleviation measures were also effective. This year, both summer grain crops and early season rice have seen increases in output, registering a 2.2% rise in total. With increasing support for grain production, farmers gain more benefits and are more active in growing grains than before. The sown area for fall grain has been significantly enlarged, with more high-yielding corn being planted. Generally, crops sown in the fall are expected to produce high yields, contributing to another bumper harvest year.

Third, animal husbandry production has maintained fast growth. Strong measures were taken to resume hog production and to promote the development of the animal husbandry industry, which have yielded obvious results. In the first three quarters, the output of pork, beef, mutton and poultry rose 22.4% year on year. More specifically, pork output increased 38%, with 491.93 million hogs slaughtered, up 35.9% year on year; and 437.64 million pigs registered in stock, an increase of 18.2% year on year. Both numbers have largely returned to normal levels.

Stable agricultural production is conducive to a sound national economy and the improvement of people's well-being, laying a solid foundation for the steady and sound socioeconomic development for the whole year. However, we need to note that there remain weak points in China's agricultural production, and we should continue our efforts to promote the steady and sustained development of agriculture. Thank you.

Reuters:

What is your economic outlook for the fourth quarter or next year? Also, has China made sufficient policies in preparation for a further economic downturn, and how should China react to the spillover effect brought by the U.S. Federal Reserve's policy changes? Thank you.

Fu Linghui:

Thank you for your questions. The economic trends in the next phase have drawn much attention. Since the beginning of this year, China has made considerable progress in its economic recovery. Although the country's economic growth slowed down in the third quarter due to many factors such as the pandemic, floods and a higher base number, it still showed strong resilience and vitality. In general, China's economy will sustain the momentum of continued recovery and move toward high-quality development, and the country has the ability to achieve its projected targets and tasks for socioeconomic development for the whole year.

First, economic recovery is well supported. In terms of consumption, stable employment and a continued rise in residents' incomes are conducive to higher spending power. The stable domestic epidemic prevention and control situation, a better consumption environment, and improving social security will also help to raise consumers' willingness to make purchases. In the first three quarters, Chinese per capita nominal consumer spending rose 15.8% year on year, with a two-year average growth of 5.7%, both higher than those of the first half of 2021. In terms of investment, business profits maintained relatively fast growth, the current rate of capacity utilization remains at a higher level, and supportive policies in the real economy will continue to take effect. All will help to improve investment in manufacturing. In the first three quarters, manufacturing investment registered a two-year average growth of 3.3%, showing a general trend of improvement. There have also emerged more favorable factors for the growth of infrastructure investment. This year marks the beginning of the 14th Five-Year Plan (2021-2025). With major projects starting construction one after another and special government bonds issued at a faster pace, there will be more infrastructure investment. In the first three quarters, the two-year average growth rate of infrastructure investment was 0.4%, up 0.2 percentage point compared with the period January to August. In terms of imports and exports, against the background of the global economic recovery, China boasts a complete industrial system and strong supporting capacity, which enables enterprises to meet the demands of the changing global market. China's exports are hence expected to maintain faster growth. At the same time, the domestic economic rebound can also drive China's imports. In the first three quarters, China's imports and exports expanded 22.7% year on year.

Second, progress has been achieved and stability ensured in industrial development. Despite the combined impact of the pandemic, floods and other adverse factors, the trend toward promoting quality and upgrading has remained unchanged. The overall situation of grain production is stable with increased output of summer grain crops and early season rice. Owing to the expanded sown area and general favorable climate conditions, the fall bumper harvest is in sight. The pace of industrial digitalization has also been stepped up. In the first three quarters, among industries above designated size, the added value of high-tech manufacturing industry increased by 20.1% year on year. The output of integrated circuits and industrial robots has grown substantially. The modern service industries also maintained sound growth momentum. In the first three quarters, the added value of the industries of information transmission, software and information technology increased by 19.3% year on year. With the continuous recovery of the Chinese economy and the steady pursuit of high-quality development, China's industries will keep heading in a positive direction. 

Third, innovation-driven power has been greatly strengthened. With the deepening reform to delegate power, streamline administration, optimize government services and the steady development of supply-side reform, China's innovation development has maintained sound growth and injected powerful vitality into economic development. According to a report released by the World Intellectual Property Organization (WIPO), China ranked 12th in the latest Global Innovation Index 2021, two places higher than last year. We have kept increasing the innovation input. In 2020, China's spending on research and development increased by 10.2% year on year, accounting for 2.4% of total GDP, close to the average level of countries in the Organization for Economic Co-operation and Development (OECD). With the optimized innovation environment and the improved supporting policies, we will further increase expenditure on technological innovation with enterprises as the main body. Innovative products are constantly emerging. A flow of major technological achievements in the fields of manned spaceflight, deep-water exploration and quantum science and technology have been revealed to the public. The bio-pharmaceutical industries, including vaccines and innovative medicines, have also achieved rapid growth. In the first three quarters, the added value of the pharmaceutical industry increased by 29.2% year on year. The innovative vitality has been greatly unleashed. In the first three quarters, the online retail sales of physical commodities and the trade of cross-border e-commerce saw a year-on-year increase of 15.2% and 20.1%, respectively. The outputs of new energy products and smart products also grew rapidly.

Regarding the policy aspect that you mentioned, it is fair to say that the government has accumulated a wealth of experience in making adjustments and controls. Over the past few years, on the basis of range-based regulation, we have strengthened directional and targeted regulations. We are fully capable of ensuring the economy operates within a reasonable range, and promoting the sound development of the economy. At present, China's financial strength has grown noticeably. Due to the relatively large space of monetary policies, we are capable of launching forceful measures in a timely manner according to changes in the situation, in a bid to promote the steady development of the economy, such as with the feasible monetary policy adjustments for major economies. Since this year, financial management departments have made a set of policy arrangements, and reduced the potential spillover effects brought about by the policy adjustments in major developed economies. Thank you. 

Yicai:

The producer price index (PPI) soared by a record high of 10.7% in September. What are the reasons for that? How do you view the trend of PPI in the coming quarter? Thank you.

Fu Linghui:

Thank you for your questions. The price change has received widespread attention. Since this year, the faster expansion of PPI can be attributed to the the combined impact of sharp price rises of international bulk commodities, increased domestic demand due to economic recovery and the tight supply of some products. In the first three quarters, PPI increased by 6.7% year on year, up by 1.5 percentage points compared with the first half of this year (H1). From the key features, the rising prices of the means of production is one of the major factors driving the rise of PPI. In the first three quarters, the prices of the means of production rose 8.9% year on year, up by 2.1 percentage points compared with H1. The prices of the means of subsistence rose by 0.2% year on year, up by 0.1 of a percentage point compared with H1. In terms of industry, price rises in petroleum, chemicals, coal and metal have had a large impact. Due to the rising prices of international crude oil, the prices of domestic petroleum and chemical-related industries rose by 10%-30% in the first three quarters, faster than that of H1. Driven by lower supply, the prices of the coal and metal-related industries increased as well. In the first three quarters, the prices of coal-related industries and the steel and non-ferrous metal-related industries rose by more than 30% and 20%, respectively.

Looking at the most recent period, we can see that due to the continuous rise in international energy prices and the tight supply of some domestic raw materials, the PPI may continue to run at a high level. However, in the medium and long term, with gradual improvements in global energy supply and shipping conditions as well as an increase in domestic product supply, the PPI is expected to gradually stabilize. It should also be noted that faced with the expansion of PPI growth and the increase in difficulties for production and operation of enterprises, relevant departments have actively taken measures to ensure supply and stable prices, and the effects will gradually become noticeable. In some areas, in the third quarter, the price increase of the steel and non-ferrous metals industries dropped by 3.3 and 3.8 percentage points respectively from the second quarter. Thank you.

Global Times:

The latest World Economic Outlook released by the IMF forecasts that China's GDP will grow by 8%in 2021, which is 0.1 percent lower than the previous forecast. What is your response to this? Thank you.

Fu Linghui:

Thank you for your question. It should be said that due to multiple factors such as repeated waves of the pandemic worldwide, rising commodity prices, tight international shipping, labor shortages and shortages of key parts and components, the pace of global economic recovery has slowed overall since the third quarter. At the same time, inflation levels in major economies have continued to rise. For example, in September, the CPI in the United States rose by 5.4% year-on-year, and the CPI in the Eurozone rose by 3.4%, both of which were relatively high in recent years. This has also increased the possibility of policy shifts in these economies and has restricted the recovery of the global economy to a certain extent. Under these conditions, the IMF recently estimated that the global economic growth rate in 2021 will be lowered to 5.9% from what was previously expected to be 6%. Among them, the economic growth rate of developed countries has been lowered to 5.2% from the original forecast of 5.6%, reflecting concerns about changes in the global economy.

Against this backdrop, since China is a country deeply embedded in the globalization process, I think it is normal for the IMF to make some expected adjustments. However, it should be pointed out that China is the only country among the major global economies that achieved positive growth despite the impact of the pandemic in 2020. Compared with other countries, the base number is relatively high. Major international organizations expect that China's economy will still maintain a relatively high growth rate at about 8% in 2021. This rate is not only higher than the global average growth rate, but also higher than the growth rate of major economies, reflecting the international community's optimism regarding the outlook for China's economic growth, and also indicates that China's economy is resilient and has huge potential. Thank you.

Shou Xiaoli:

Last two questions.

Red Star News:

In recent months, China's manufacturing PMI has continued to decline. In September, the PMI was 49.6%, which was 0.5 percentage points lower than the previous month and below the threshold. What caused this? Is it related to industrial raw material prices and recent energy shortages? Will it have an adverse impact on the national economy? What are the expectations for the future? Thank you.

Fu Linghui:

Thank you for your questions. It should be said that the recent decline in manufacturing PMI is the result of multiple factors at home and abroad. From the international perspective, the recovery of the world economy is slowing down, the prices of international commodities have risen sharply, and the tension in international shipping will inevitably affect the expectations of domestic companies. From the domestic perspective, due to the impact of the pandemic resurgence and floods in some regions in July and August, some long-term accumulated structural problems have appeared, which will also affect business expectations.

Although the manufacturing PMI declined in September, the overall outlook for the development prospects of enterprises remained stable. We can see that in the manufacturing PMI in September, the expected index of enterprise production and operation activities was 56.4%, which is still at a relatively high level. As for the future, the fundamentals of the long-term improvement of China's economy have not changed. The overall plan for pandemic prevention and control and economic and social development have been solidly promoted. The cross-cycle adjustment of macro policies has been effectively implemented. Policies supporting the development of the real economy have continued to be effective. Enterprises' expectations should stabilize. Thank you. 

The Beijing News:

The data released today also showed that pork prices fell by 28% year-on-year in the first three quarters. Recently, pork prices have been declining, and farmers have suffered losses, especially during the National Day holiday. Pig prices across the country have repeatedly hit new lows, and farmers are becoming more and more panicked. What negative impact will this have on the pork supply in the next period? What about pork price trends in the future? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, live pig production has continued to recover, production capacities have continued to expand and related prices have declined. In general, in the next stage, as the demands for meat pickling in some areas continue to increase, coupled with consumption boosts from the New Year's Day and Spring Festival holidays, the demands for pork consumption will increase. At the same time, the second round of frozen pork procurement and storage by the central government will be launched during the year, which is conducive to the stability of pork prices.

In terms of future development, the current large-scale breeding of live pig production is continuously expanding. These large-scale enterprises are improving their ability to grasp market changes and prevent and respond to market fluctuation risks. At the same time, we see that for the live pig market, the national regulatory and control mechanism is constantly improving, which is conducive to the stability of live pig production. Thank you.

Shou Xiaoli:

Thank you, Mr. Fu Linghui, and thank you media friends. This is the end of today's press conference.

Translated and edited by Wang Qian, Zhu Bochen, Duan Yaying, He Shan, Yang Xi, Li Huiru, Gao Zhan, Chen Xia, Wang Mengru, Huang Shan, Xiang Bin, Yuan Fang, Qin Qi, Zhang Rui, Ma Yujia, Wang Wei, Zhang Tingting, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Zhao Yingmin, vice minister of ecology and environment

Zhang Zhanhai, chief engineer and spokesperson of the Ministry of Natural Resources

Li Chunliang, deputy administrator of the National Forestry and Grassland Administration

Chairperson:

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

Date:

Oct. 8, 2021

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference being held by the State Council Information Office (SCIO). The SCIO is holding this press conference today to issue, introduce and interpret a new white paper titled "Biodiversity Conservation in China."

This is the first white paper on biodiversity conservation issued by the Chinese government. Under the guidance of Xi Jinping Thought on Ecological Civilization, the white paper introduces the policy ideas, important measures and progress of biodiversity conservation in China, as well as China's initiatives in practicing multilateralism and deepening global biodiversity cooperation, and its contributions to the world.

At about 14,000 Chinese characters, the white paper consists of three parts: preface, main body and conclusion. Among them, the main body includes four parts: Harmony Between Humanity and Nature, Increasing the Efficiency of Biodiversity Conservation, Improving Biodiversity Governance, and Further Global Cooperation on Biodiversity Conservation. The paper is published in eight languages: Chinese, English, French, Russian, German, Spanish, Arabic and Japanese. These versions have been published by the People's Publishing House and Foreign Languages Press respectively, and will be distributed in Xinhua bookstores across the country.

In order to help everyone accurately and deeply understand the content of the white paper, we have invited Mr. Zhao Yingmin, vice minister of ecology and environment; Mr. Zhang Zhanhai, chief engineer and spokesperson of the Ministry of Natural Resources; and Mr. Li Chunliang, deputy administrator of the National Forestry and Grassland Administration, to attend today's press conference. They will introduce relevant information and answer your questions.

Now, I will give the floor to Mr. Zhao Yingmin, vice minister of ecology and environment.

Zhao Yingmin: 

Thank you. Ladies and gentlemen, friends from the media, good morning. I am very glad to have the opportunity to introduce to you the newly released white paper "Biodiversity Conservation in China." I would like to take this opportunity to sincerely thank you, friends from the media, for your long-term care and support for China's biodiversity conservation work.

Biodiversity provides humanity with rich and diverse production and life necessities, a healthy and safe ecological environment, and unique natural landscape culture. It is a significant foundation for the survival and development of mankind, and is related to the well-being of mankind. We once had a slogan for the International Year of Biodiversity: "Biodiversity is life. Biodiversity is our life." This sentence vividly illustrates the relationship between us and biodiversity, and the importance of conserving biodiversity.

With population growth and expansion of human economic activities, global biodiversity is facing serious threats. According to a global assessment report released by the United Nations in May 2019, human activities have altered 75% of terrestrial environment and 66% of marine environment, and a quarter of the world's species are at threat of extinction. On Sept. 18, 2020, the Secretariat of the Convention on Biological Diversity launched the fifth edition of the Global Biodiversity Outlook (GBO-5). The report stated that despite the progress in many areas of biodiversity conservation, nature is still suffering heavy blows, and the global biodiversity situation is still deteriorating.

China has a vast territory, in terms of both land and seas. Its geomorphology and climate are complex and diverse, nurturing a rich and unique ecosystem, and species and genetic diversity. It is one of the most biodiverse countries in the world. China's traditional culture has accumulated abundant wisdom in the protection and utilization of biodiversity. As one of the first parties to sign and ratify the Convention on Biological Diversity, China has always attached great importance to biodiversity conservation, and continuously promoted the conservation of biodiversity with creative and up-to-date measures. It has achieved remarkable progress on a distinctively Chinese path of biodiversity conservation. The white paper "Biodiversity Conservation in China" comprehensively summarizes that, under the guidance of Xi Jinping Thought on Ecological Civilization and with the goal of building a Beautiful China, the country actively adapts to the new situation and new requirements, and has been continuously improving the measures for biodiversity conservation and making innovative ways in this regard. It systematically expounds, from four aspects, on the ideas, actions and effects of China's biodiversity conservation that aims to promote harmonious coexistence between humanity and nature, between individuals, and between individuals and society, and create a virtuous circle for all-round development and sustained prosperity for all.

The 15th meeting of the Parties to the UN Convention on Biological Diversity (COP-15) will be held soon. The 2030 Agenda for Sustainable Development has also entered its "Decade of Action" to achieve global goals. At the same time, China has built a moderately prosperous society in all respects and embarked on a new journey of building a modern socialist country in all respects. The international community is standing at the historic juncture of protecting biodiversity and realizing global sustainable development. At this time, it is of important practical significance to release the white paper "Biodiversity Conservation in China" and introduce China's ideas, plans and actions in the field of biodiversity conservation to the international community. It aims to enhance the international community's understanding of China's biodiversity conservation, and contribute Chinese wisdom to global biodiversity conservation. 

Looking back on the past and forward to the future, the international community must work together in biodiversity conservation. China will continue to increase its biodiversity conservation efforts and actively participate in global biodiversity governance. China will work with the international community to discuss new strategies for global biodiversity governance, and embark on a new course of the post-2020 global biodiversity governance that is more just and reasonable, and where each will do their best.

That's all for my introduction. Next, the three of us will answer your questions.

Thank you.

Chen Wenjun:

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

CCTV:

The white paper, titled "Biodiversity Conservation in China," is the first one issued by the country to focus on the field of biodiversity conservation. Given that the 15th meeting of the Conference of the Parties to the UN Convention on Biological Diversity – known as COP15 – is set to kick off in Yunnan province soon, why did you choose to issue the white paper now and what is its significance? Thank you.

Zhao Yingmin:

I just explained that China is one of the most biodiverse countries in the world and also one of the first countries to sign and approve the UN Convention on Biological Diversity. China attaches great importance to biodiversity conservation and preserves biodiversity with creative and up-to-date measures. Since the 18th CPC National Congress, China has been prioritizing eco-environmental progress and pursuing green development under the guidance of Xi Jinping Thought on Ecological Civilization. A new pattern of biodiversity governance has largely taken shape, with improvements to the legal system, mechanisms for supervision as well as fundamental capabilities, marking the start of a new era for biodiversity conservation. China has achieved substantial progress on the path to biodiversity conservation with Chinese characteristics.

There is a practical significance to issuing the white paper ahead of the upcoming COP15. It presents China's visions, measures and achievements on biodiversity conservation to the world, and also provides China's solutions to global biodiversity conservation. These are reflected in the following four aspects.

First, it is the first time that China has issued a white paper comprehensively introducing its efforts in the field of biodiversity conservation. China regards biodiversity conservation as a vital part of promoting ecological progress and an important starting point for promoting high-quality development. The requirements of biodiversity conservation have been incorporated into all aspects and fields of economic and social development, and all sectors of society have been mobilized to protect biodiversity. The release of the first white paper is a concrete manifestation of China's comprehensive and in-depth efforts to promote the mainstreaming of biodiversity, therefore it is of great significance.

Second, the white paper showcases China's concept, action and achievements in biodiversity conservation, as well as China's contribution to global biodiversity conservation. By elaborating on China's commitment to the philosophy of harmonious coexistence between humanity and nature, the country's efforts in holistically enhancing the efficiency of biodiversity conservation and in improving biodiversity governance, as well as its innovative measures and fruitful achievements in deepening global biodiversity exchanges and cooperation, the white paper shows that China shoulders its responsibility and makes its contribution to biodiversity conservation as a major country. Meanwhile, it also expresses China's confidence in standing in solidarity with the rest of the world as we meet global biodiversity challenges.

Third, it summarizes the practice and experience of China's biodiversity conservation efforts and provides solutions for building a shared future for all life on Earth. China always stands guard for our harmonious and beautiful planet for all life and has been contributing to its wellbeing with action. With proactive explorations and bold practices, China has embarked on a road to biodiversity conservation with Chinese characteristics. On the occasion of COP15, the white paper will enable us to share China's experience in biodiversity governance. This will help build confidence in the global response to the challenges and risks of biodiversity loss and ecosystem degradation. It will play an important role in promoting the achievement of ambitious and pragmatic outcomes at the meeting and the formation of a more fair and equitable global biodiversity governance system where each country can make contribution to the best of its ability.

Fourth, the white paper will inspire enthusiasm across society for biodiversity conservation and accelerate biodiversity governance process, in which everyone is responsible to undertake his or her due obligations, while also enjoying all of the benefits. Biodiversity provides an important material basis for the survival and development of humanity, therefore protecting biodiversity is the responsibility and obligation of every country, organization and individual. China sees the release of the white paper as an opportunity to earnestly implement international conventions, continue to widely promote various biodiversity protection efforts, and mobilize and pool the strengths of the whole society to participate in biodiversity protection, providing a strong and enduring driving force for biodiversity conservation.

Thank you.

CRI:

Biodiversity has a direct bearing on people's wellbeing and is an important basis for human survival and development. What efforts and achievements has China made in biodiversity conservation in recent years? What measures and actions will be taken to further consolidate and develop the achievements made in biodiversity conservation? Thank you.

Zhao Yingmin:

Thank you for your questions. Under the guidance of Xi Jinping Thought on Ecological Civilization, China has upheld the philosophy of harmonious coexistence between humanity and nature and has actively promoted the construction of its ecological civilization. Improvements have been made to the legal system, supervision mechanisms and fundamental capabilities of ecological protection. With the goal of building a beautiful China, the country has actively adapted to new situations and requirements, strengthened and innovated biodiversity protection measures, and improved its overall biodiversity conservation system. It has established conservation mechanisms led by the government and featuring multilateral governance and win-win cooperation, in which all citizens participate. This way, it has made remarkable progress in biodiversity conservation. The white paper systematically expounds these efforts on four aspects, and the achievements can be summarized in ten areas.

First, optimizing in-situ conservation. We are creating a protected area framework with a focus on national parks. China was the first in the world to propose and implement the red line strategy for ecological conservation. It has designated priority areas in biodiversity conservation, contributing to the conservation of habitats for key species. At present, China has brought 90% of terrestrial ecosystem types and 71% of key state-protected wildlife species under effective protection. The populations of well-known endangered species such as the giant panda, crested ibis and Asian elephant are constantly increasing. 

Second, improving ex-situ conservation. China continues to step up ex-situ conservation, and has launched systematic campaigns to save endangered species. More biological genetic resources are collected and better preserved, and the ex-situ conservation system is improving as an effective complement to in-situ conservation, helping to protect and restore many species of endangered wildlife. 

Third, improving biosecurity governance. China has included biosecurity in the national security system. The Biosecurity Law was promulgated and came into force in 2021. Systematic planning has been carried out for biosecurity risk control and governance. Efforts have been made to improve the mechanism for preventing invasive alien species, promote the sound development of biotechnologies, and strengthen the protection, supervision and regulation of biogenetic resources. The aim is to constantly improve national biosecurity governance. 

Fourth, improving the eco-environment. China has launched a series of projects for the integrated conservation and restoration of mountains, rivers, forests, farmland, lakes, grasslands, deserts, glaciers and snow mountains. As a result, ecological deterioration has been contained, and ecosystems are generally stable, with a greater capacity to serve development. China has been fighting a tough battle against pollution; the pressure on biodiversity conservation has been greatly eased, the eco-environment continues to improve, and a framework of "shields" for ecological security has been largely completed. 

Fifth, promoting green development with coordinated efforts. China endeavors to advance social and economic development within the carrying capacity of supporting ecosystems. Measures have been taken to transform the economic growth model, encourage green and low-carbon ways of life, and coordinate efforts in biodiversity conservation and high-quality development. We have accelerated the green transformation of all sectors and industries, promoted green urban and rural development, and explored methods to realize the market value of green products.

Sixth, improving relevant policies, laws and regulations. Biodiversity conservation has been elevated to a national strategy in China, and incorporated into mid- and long-term plans of all regions and fields. We have strengthened organization and leadership. There has been a drive to improve the legal and policy framework. China has promulgated and revised more than 20 laws and regulations related to biodiversity conservation, including laws on the protection of wild animals and the environment. China has also revised the list of key wild animals under state protection. 

Seventh, extending guarantees. China has organized nationwide biodiversity surveys, and put in place sound biodiversity monitoring and observation networks. It has increased financial input and effort in technology research and development and launched major biodiversity conservation projects.

Eighth, strengthening law enforcement and supervision. China has conducted central environmental protection inspections, and launched special law enforcement campaigns including the Green Shield inspections of nature reserves, the Blue Sea initiative for marine environmental protection and the crackdown on illegal wildlife trade. China has always been tough against illegal and criminal activities related to biodiversity with constantly increased efforts.

Ninth, encouraging public engagement. China continues to strengthen publicity and education on biodiversity conservation. An action system involving stronger government guidance, corporate action and extensive public participation is taking shape. Public participation in biodiversity conservation has grown and become more diversified. 

Tenth, further global cooperation on biodiversity conservation. China has actively implemented international conventions and worked to enhance synergies among biodiversity-related conventions. China has firmly practiced multilateralism and actively carried out international cooperation. It has provided help and support to other developing countries within its abilities regarding biodiversity conservation, and is striving to build a shared future for all life on Earth.

Going forward, we will make systematic plans and continue our efforts. As for policies, laws and regulations, we will revise the China National Biodiversity Conservation Strategy and Action Plan (2011-2030) to improve relevant policies and systems. We will push forward the formulating and revising of biodiversity-related laws and regulations to improve the legal system. As for measures, we will formulate and implement the Ten-Year Plan of Major Biodiversity Conservation Projects (2021-2030), promote background surveys of the priority areas in biodiversity conservation, and improve observation networks. Monitoring data and information platforms on biodiversity conservation will be improved and capacity for biodiversity protection and governance will be enhanced in an all-round manner. 

Thank you. 

Beijing Youth Daily:

According to the Global Biodiversity Outlook 5 (GBO-5) released in September 2020, progress on the 20 Aichi Biodiversity Targets set in 2010 was insufficient. What were the main reasons for that? How well did China meet the 20 Aichi Biodiversity Targets? What were the achievements and shortcomings? 

Zhao Yingmin: 

Thank you for your questions. At the 10th meeting of the Conference of the Parties to the Convention on Biological Diversity in 2010, the international community adopted the global biodiversity conservation targets for the 2011-2020 period to deal with severe biodiversity loss. According to the GBO-5 released by the Secretariat of the Convention on Biological Diversity in September 2020, although most parties actively formulated their own national policies and targets to protect biodiversity, and made significant progress in the mainstreaming of biodiversity, the Aichi Targets were not sufficiently met around the globe. The trend of biodiversity loss is not being reversed fundamentally and the pressure on biodiversity is still increasing. Looking back, there are several experiences and lessons that we should learn.

First, global targets should be both ambitious and practical and feasible. Second, implementation mechanisms and supportive conditions should be improved. Special importance should be attached to the needs of developing countries in capital, technologies and talents. Third, all parties should further emphasize biodiversity conservation and take greater measures to ensure it. 

The upcoming COP15 will discuss the "Post-2020 Global Biodiversity Framework," review the progress and lessons learned from the previous global biodiversity targets of the past decade, and find opportunities for future transformations and reforms. Therefore, when discussing the new targets and strategies, we should fully reflect on the lessons of the Aichi Biodiversity Targets (2021-2020). We must also boost confidence in protecting global biodiversity, take solid steps and seek truth from facts, take full consideration of the attainability and operation of the targets as well as the differences in each country's development, so as to introduce both ambitious and pragmatic targets and indicators for biodiversity protection and propose feasible roadmaps for meeting them. The framework should also follow the principle of fairness, transparency and signatory leadership; improve the implementation mechanisms and guarantee system; strengthen technological transfer and capacity building; improve developing countries' abilities to meet the agreement; and strive to build a global biodiversity governance system that is both fair and practical and based on cooperation and win-win resolution. The continuing COVID-19 pandemic teaches us a lesson that people and nature form a shared community. The international community should step up cooperation to meet the risks and challenges caused by the loss of biodiversity and the degradation of the ecosystem.

As one of the countries with the richest biodiversity in the world, China has earnestly implemented the Aichi targets, clarified various tasks and responsibilities, and achieved positive results in the implementation of the targets. Among the 20 targets, China has over-fulfilled three, made major progress in 13 and achieved phased results in four. China's overall implementation of the Aichi targets is above the global average.

The Global Biodiversity Outlook 5 (GBO-5) have mentioned China's valuable experience in biodiversity conservation multiple times. Next, we will further strengthen the top-level design of biodiversity conservation. We will improve the construction of laws, regulations and the policy planning system. We will also continue to implement major biodiversity conservation projects, improve the early warning and monitoring system of alien invasive species, promote the implementation of various biodiversity conservation responsibilities through the central supervision system for ecological environment protection, and improve the ability of biodiversity governance in an all-round way. Thank you.

China Natural Resources News:

Ecological restoration is an important means to protect and improve biodiversity. What has the Ministry of Natural Resources done to fulfill its responsibility to restore the ecology of our national territorial space? Are there any future plans? Thank you.

Zhang Zhanhai:

Thanks for your question. Since its founding, the ministry has been earnestly implementing Xi Jinping Thought on Ecological Civilization, following the principles of prioritizing resource conservation and environmental protection and promoting the self-restoration of nature. It is strengthening the ecological restoration of the national territorial space, and has put ecological restoration and the protection and improvement of biodiversity as its major goals. The work we have done can be separated into the following two aspects.

First, we have prioritized biodiversity conservation in related plans. In 2020, the National Development and Reform Commission and the Ministry of Natural Resources published the Master Plan for Major National Ecological System Protection and Restoration Projects (2021-2035), with a major focus on the construction of national parks, natural reserves, natural parks as well as the protection of endangered wildlife. The plan laid out 9 major projects and 47 specific tasks, including 23 that are related to biodiversity conservation, taking into account the integrity of the ecosystem, the continuity of geographical units and the sustainability of socioeconomic development. It provides a major guarantee for biodiversity conservation and the protection and restoration of the major ecological system.

Second, we have implemented a series of major ecological protection and restoration projects. During the 13th Five-Year Plan period (2016-2020), the central government invested 50 billion yuan (US$7.75 billion) in the land area to carry out 25 pilot projects for ecological protection and restoration of mountains, rivers, forests, lakes and grasslands in key national ecological function areas such as Qilian Mountains, Helan Mountain, Changbai Mountain and Lesser Khingan Mountains. In the Yangtze River Economic Belt, the Yellow River Basin, the Beijing-Tianjin-Hebei region, the Fenwei Plain and other important river basins and regions, we have carried out restoration of abandoned mines left over from history, with the restoration area totaling 4 million mu (266,667 hectares). In the coastal areas, we carried out the "Blue Bay" project, the coastal zone protection and restoration project, and the mangrove protection and restoration project. During the 13th Five-Year Plan period (2016-2020), a total of 1,200 kilometers of coastal lines and 345,000 mu of coastal wetland were restored. This year, as part of the 14th Five-Year Plan, we have launched the first batch of 10 integrated protection and restoration projects for mountains, rivers, forests, farmlands, lakes, grasslands and deserts, as well as 15 marine ecological restoration projects.

Next, my ministry will take the implementation of the master plan as the main line and aim to comprehensively improve the quality of the national ecological security barrier and the virtuous circle of the ecosystem. We will carry out ecological protection and restoration work in the protective barriers for eco-security in the Qinghai-Tibet Plateau, the important ecological areas along the Yellow River and the Yangtze River, the northeast forest belts, the sand control belts in the north, the hilly and mountainous areas in the south, and the coastal zones. We will carry out these projects in a scientific manner, build a stronger defense for ecological security and further contribute to the protection and improvement of China's biodiversity.

Thank you.

China Daily:

The National Forestry and Grassland Administration is one of the main departments responsible for conserving biodiversity. What efforts have you made to this end? And what progress has been made? Thank you.

Li Chunliang:

Thank you for your questions. The release of the white paper reflects the efforts and achievements China has made in biodiversity conservation over the years. The forestry and grassland sector is one of the main departments responsible for biodiversity conservation. I will brief you on the work we have done in protecting ecosystem diversity, species diversity and genetic resource diversity.

First, regarding the protection of ecosystem diversity, we have intensified efforts in improving the ecosystems of forests, grasslands, wetlands and deserts. As for forest ecosystems, we have focused on conservation and restoration and launched many projects including large-scale afforestation, protection of natural forests and turning marginal farmland into forests. As a result, the natural forest reserve has registered a significant increase, with 78% of total forest carbon storage coming from natural forests. China's forest coverage and forest reserve have both maintained growth for the last 30 years, and the forest ecosystem has a greater capacity to serve development.

As for grassland ecosystems, we have made solid progress in the conservation and restoration of grasslands by turning grazing lands to grasslands and subsidizing the restoration of grassland eco-environments. In 2020, the vegetation coverage of China's grasslands stood at more than 56%, and the grass continued to improve. 

As for wetland ecosystems, during the 13th Five-year Plan period, we have implemented 53 wetland conservation and restoration programs as well as more than 2,000 programs including those that compensate for economic disadvantages associated with reducing damage to wetland eco-environments, and those that provide allowances for turning farmlands into wetlands, with 201 new national wetland parks and an increase of wetlands by 3.04 million mu (202,667 hectares). A total of 7.01 million mu of degraded wetlands have been restored, and more than 50% of wetlands have been protected. The wetland ecosystem continues to improve, with water quality improvements and the number of migratory bird populations picking up significantly.

As for desert ecosystems, we have implemented key projects with continual efforts to develop the Three-North (i.e., Northeast China, North China and Northwest China) Shelterbelt Forest Program for 43 years, facilitating sandstorm source control in Beijing and Tianjin for 21 years, and controlling stony desertification for 15 years. Moreover, we have mapped out protected regions for desertification lands and developed more national desert (stony desert) parks. China has been consolidating progress step by step to curb the global major ecological issue of desertification. Studies have shown that China's sandy lands have changed from an annual average expansion of 3,436 square kilometers at the end of the last century to a current annual average decrease of 1,980 square kilometers, creating a human miracle of turning desert into oasis and transforming wastelands into forests, all while advancing China's solutions for global ecological governance.

Second, regarding species diversity conservation, we have initialed since 2001 projects for wild animal and plant conservation and constructed nature reserves , and put 15 rare and endangered species of wild animals and plants including giant pandas, Manchurian tigers, golden monkeys, red ibises and cycads under conservation. Rescue measures have been adopted to establish nearly 10,000 nature reserves nationwide, accounting for roughly 18% of China's lands. A total of 90% of land ecosystems, 65% of higher plant communities, and 71% of wildlife species under state conservation have been protected. Conservation of flagship species has shown umbrella effects, benefiting other species in the same habitat. The number of species under state conservation continued to increase. China has rebuilt the wild population of the elk, Przewalski's horse and crested ibis, once nowhere to be found in the wild, winning global attention.

Third, regarding the preservation of genetic resources diversity, we have made the following efforts to promote the genetic resource preservation of wild plants. We have begun constructing a botanical garden system. A total of 162 botanical gardens have been established to collect and preserve more than 20,000 wild plants. China has completed basic preservation of germplasm resources of rare and wild plants including cycad, palm, and key orchidaceae and magnoliaceae plants native to the country. We have launched the construction of germplasm resources for trees. China has established 161 state-level germplasm resource in-situ and ex-situ banks for trees, and two state-level germplasm resource sub-centers for trees and grass in Xinjiang and Shandong, preserving more than 100,000 copies of germplasm resources for trees. We have launched the construction of germplasm resource centers for grass. China has set up one germplasm center for grass and 11 state-level germplasm resource gardens for grass, preserving more than 60,000 germplasm resources of grass, mainly herbage.

Regarding wildlife genetic resource preservation, we have set up and improved wildlife rescue and breeding centers and germplasm genetic banks, supported the establishment of a national center for genetic conservation of endangered wildlife, a feline research center, and an Asian elephant conservation and research center, collecting and preserving a total of 220,000 genome-wide DNA samples of more than 800 species of China's rare and endangered wildlife.

Over the years, we have made remarkable progress in preserving forest and grass biodiversity. We will continue to work on natural ecosystem conservation, endangered species rescue and breeding, and genetic resource collection and preservation, making more contributions to biodiversity conservation at home and abroad. Thank you.

Phoenix TV:

We have noticed that according to some research, global biodiversity is dramatically decreasing. What experience can China, as one of the most biodiverse countries in the world, offer to others?

Zhao Yingmin:

Thank you for your question. All of the world's countries and all human beings are a community with a shared future and share in the challenges brought by the loss of biodiversity. China, as an important force in biodiversity conservation, has always pursued harmony between humanity and nature, constantly strengthening and creating biodiversity conservation measures. It has also yielded outstanding achievements while maintaining fast economic development. The experience we accumulated can be condensed into the following four aspects:

First: respecting nature and prioritizing biodiversity conservation. Following the principles of respecting and protecting nature and obeying nature's laws, China has built a nature reserves system centering on national parks and put forward "the ecological red-line" system by identifying the country's crucial ecological zones, thus playing an important role in protecting key ecosystems, species, and their habitats. A large number of ecological projects have also been launched, such as step-by-step protection and restoration of natural forests, and programs turning marginal farmland back into forests or grasslands or wetlands. China has advanced pilot projects for the conservation and restoration of mountains, rivers, forests, farmland, lakes, grasslands, deserts, and ice ecosystems, effectively restored the environment of the wild plants and animals in crucial areas, and increased the number of the species of wild animals. China has been fighting a tough battle of pollution prevention and control; the eco-environment has improved notably and the pressure on biodiversity conservation has been eased.

Second, seeking green development and sustainable utilization of bio-resources. China has promoted green, low-carbon ways of life and work

so as to ease the burden on biodiversity. China has integrated biodiversity conservation with development-oriented poverty alleviation and rural revitalization based on different local characteristics and traditional cultural features and exploited new ways to achieve win-win results in both biodiversity conservation and high-quality development. Cherishing the principle that "lucid waters and lush mountains are invaluable assets," China has also launched a pilot innovation-based construction site and base site for realizing eco-products values and turned ecological strengths into high-quality social-economic driving forces of development, thus fueling the motivation of biodiversity conservation throughout the country.

Third, enhancing institutional guarantee and coordinating actions for biodiversity conservation. By implementing the new development philosophy, China has strengthened biodiversity conservation as a national strategy, improved laws, regulations, and policies to provide institutional guarantee for biodiversity protection and management. China has ramped up biodiversity conservation through top-level design. It has been included in the 14th Five-Year Plan (2021-2025) for National Social and Economic Development. The China Biodiversity Conservation Strategy and Action Plan (2011-2030) has been adopted as a guideline for mid- and long-term work. Biodiversity conservation tasks are incorporated into mid- and long-term plans of all regions and fields across China.

Fourth, upholding multilateralism and win-win cooperation. China firmly supports a multilateral biodiversity governance system, actively participates in its process, and fulfills its obligations prescribed in the Convention on Biological Diversity and other relating treaties. China has been providing assistance within its ability to other developing countries through many bilateral and multilateral cooperation mechanisms, such as the Belt and Road Initiative International Green Development Coalition and South-South cooperation, thus deepening international exchanges and cooperation on biodiversity and contributing China's strengths and proposals to the great vision of achieving harmony between humanity and nature. Thank you!

Cover News:

We have noticed that a territorial space plan on "rolling separate plans into one single plan" is currently being formulated. In some cities there are also teams dedicated to the conservation and restoration of biodiversity. How will the territorial space plan play a role in the biodiversity conservation process? What practical experience does China have at this moment? Thank you!

Zhang Zhanhai:

Thank you for your questions. In line with the reform arrangements of the CPC Central Committee and the State Council, the formulation of different kinds of territorial space plans is being accelerated at all levels. Biodiversity conservation is a particularly important field, and relevant regulations and policies are being discussed and proposed. 

First, optimizing the layout of ecological space in territorial planning. We will make overall plans for ecological, agricultural and urban spaces, and protect biodiversity on three levels: ecosystems, species and genes. Through in-situ and ex-situ conservation, we will strengthen the protection of global and national key biodiversity areas, develop global migration routes for migratory birds and rare wildlife, improve the systems of species' ex-situ conservation and genes preservation, and build a global biodiversity protection network. We will build the protected areas system, which includes dozens of national parks, 1,000-plus natural reserves and thousands of natural parks, to effectively protect important natural ecosystems and biodiversity-rich areas. Efforts will also be made to strengthen the protection and construction of urban ecological systems, promote the formation of a continuous, complete and systematic ecological protection pattern, and promote the conservation and restoration of biodiversity. For example, Shanghai has constructed 21 parks at key ecological points on its outskirts, and Chengdu and other cities are transforming themselves into green cities, in order to form an urban layout that strikes a harmonious balance between humanity and nature.

Second, setting ecological conservation red lines (ECRLs) in territorial planning. China has established three control lines in order of priority: boundary lines for permanent basic cropland, ECRLs and boundary lines for urban development. The ECRLs include essential ecological functional areas, natural reserves, the most ecologically fragile regions, and areas with a potentially important ecological value, where stringent measures are applied to control their utilization. For example, Nanchang and other cities set up multidisciplinary teams to research the migration patterns of birds around the Poyang Lake and included the areas that migratory birds fly over into the ECRLs for strict control. At present, the ECRLs initially mapped in China have covered various important ecosystems and bring most of the rare and endangered species and their habitats under protection.

Third, accelerating the building of a basic information platform for territorial space and an implementation and supervision information system for "one-map" territorial planning. Biodiversity conservation is regarded as an important part of the implementation and supervision. We will comply with the requirements of "unified base map, unified standard, unified planning and unified platform" to build a unified basic information platform for territorial space and draw a unified map for territorial planning. Efforts will be made to plan for complete life cycles while conducting periodic surveys and assessments of how plans are being implemented, and include local indicator species and other indexes into the implementation assessment system. We will also improve the long-term monitoring and early warning mechanism for the carrying capacity of resources and the environment, and strengthen the monitoring and early warning of indicators related to biodiversity conservation, so as to constantly refine plans and policies, and boost biodiversity conservation. Thank you.

Red Star News:

Recently, the proper response to a herd of wild Asian elephants roaming northward reflects the overall improvements of China's ecosystem and the remarkable achievements in ecological conservation. Wildlife protection requires long-term efforts. Could you give us more details on the work you have done in this regard during the 13th Five-Year Plan (2016-2020) period? What achievements have you made? What are your plans for the future? Thank you.

Li Chunliang:

Thank you for your concern about wildlife protection, which is of great concern to all sectors of society. The CPC Central Committee and the State Council have paid close attention to wildlife conservation. General Secretary Xi Jinping has given many important instructions on the issue, and showed great concerns and personal commitment to its development. We have carried out our work in the following six areas.

First, we have promoted law-based administration and continuously improved legislation, regulations and related support systems. China has revised the Law on the Protection of Wildlife twice, and systematically adjusted the list of key wild animals under state protection. On Feb. 1 this year, the State Council announced a revised version of the list. The new list includes 980 species and eight categories of wild animals, among which 686 are terrestrial wildlife with 189 under first-level and 497 under second-level protection.

Second, we have carried out the second national survey on terrestrial wildlife, and have made plans to gradually achieve real-time monitoring for key species, including the Siberian tiger, the Amur leopard and the Asian elephant.

Third, we have protected critically endangered wildlife to prevent them from going extinct. We made advances in artificial breeding technologies, released several species into the wild, and restored and reconstructed the wild populations.

Fourth, we have taken firm actions against illegal trade. Under the principle of "prioritizing conservation, standardizing utilization and strict supervision," the Chinese government has fulfilled its responsibilities, acted proactively, and constantly strengthened law enforcement. The National Forestry and Grassland Administration has worked with 27 other central and state departments to set up a ministerial joint meeting for cracking down on illegal wildlife trade. We organized nationwide actions against illegal hunting, utilization and online trading of rare and endangered wild animals. Recently, we deployed special measures to protect migratory birds in spring and autumn, eradicate criminal gangs, cut off illegal trade chains, and effectively curb the high frequency of crimes against wildlife resources.

Fifth, we initially established and improved a monitoring and control system for epidemic diseases within wild animal communities, and have effectively prevented and controlled epidemic spread.

Six, we have actively participated in international compliance affairs, strengthened international cooperation, promoted cross-border wildlife protection, fulfilled international obligations, and assisted other Asian and African countries with wildlife protection. China has become an important contributor to global ecological conservation. In particular, China has banned all activities related to using or trading tigers, rhinos, their products and ivories. It has also properly handled wild Asian elephants migrating northward. These actions have demonstrated China's image as a responsible major country.

I would like to share some statistics with you, which can also be found in the white paper. Generally speaking, the above-mentioned measures have basically reversed the loss of endangered wild animals, including giant pandas, crested ibises, Asian elephants and Tibetan antelopes. Their numbers are now on the rise. Specifically, the population of giant pandas in the wild has grown from 1,114 in the 1980s to 1,864 at present. The Asian elephant population in the wild has grown from 180 in 1985 to about 300 today. The Tibetan antelope population has grown from 60,000 to 70,000 in the late 1990s to 300,000 now. I visited the Qiangtang National Nature Reserve in Tibet last month, where I was delighted to see large herds of Tibetan antelopes, Tibetan gazelles, Tibetan wild donkeys, and blue sheep. In addition, the wild population of the Hainan Gibbon has increased from no more than 10 in two groups 40 years ago to 35 in 5 groups. The crested ibis population has increased from only 7 in 1981, when it was first discovered, to over 5,000 at present, when both wild species and artificial breeds are counted. The number of white cranes has climbed from 210 in the early 1980s to more than 4,500 today. The population of black-faced spoonbill has grown from more than 1,000 in the early 2000s to more than 4,000 now. China has rebuilt the wild population of the Przewalski's horse and elk, which were extinct in the wild. We have also released a large group of wild animals, such as giant pandas, crested ibises, Chinese alligators, forest musk deer, Elliot's pheasants, and Francois' leaf monkeys.

In the next step, we will continue to implement the decisions and plans of the CPC Central Committee and the State Council, rescue rare and endangered wildlife in order, and improve the system for biodiversity conservation. We will tighten import and export management and law enforcement, strengthen the monitoring, early warning, prevention, and control of epidemic diseases, and take stricter control measures over invasive alien species. We will actively provide guidance and adopt regulatory measures in handling conflicts between humans and wild animals, and preserve biodiversity and biosafety to make new advances in wildlife protection and achieve harmonious coexistence between humanity and wild animals.

Chen Wenjun:

The last question, please.

China News Service:

While the government plays a leading role in biodiversity protection, the public have also been a big part in this endeavor. What measures have been taken to raise public awareness of biodiversity conservation and encourage their engagement? Thank you.

Zhao Yingmin:

Thank you for your question. Biodiversity is closely related to everyone, as it sustains human life and provides essential material foundation for us to survive and thrive. Statistics show that more than half of the global GDP is moderately or highly dependent on natural resources. Facing global biodiversity loss and ecosystem degradation, China values harmony between man and nature, prioritizes ecological protection and green development, and has built a government-led mechanism featuring public participation, multilateral governance, and win-win cooperation. To facilitate the broad participation of all sectors of society in biodiversity protection, we promulgated the code of conduct for Chinese citizens in ecological protection (trial) and the guidelines for promoting public participation in environmental protection, organized a series of events under the framework of "United Nations Decade on Biodiversity, China in Action," and vigorously publicized the ideas, laws, regulations, and measures related to biodiversity conservation. On important occasions such as the International Day for Biological Diversity, World Environment Day, and World Earth Day, we publicized the importance of biodiversity conservation, the outcomes, and ways of participation. We also provided guidance for local departments to hold a series of publicity, education, and science popularization activities. At the same time, we actively cooperated with news organizations to expand publicity platforms and innovate publicity models with the help of new media.

Enterprises and social organizations are also important forces for biodiversity conservation. More and more organizations are playing their part in promoting publicity and education on biodiversity conservation. Through entertaining and innovative products and activities, they are helping the public gain more knowledge about biodiversity conservation and facilitate broader participation.

Everyone can contribute to biodiversity conservation by taking specific and practical actions in our daily lives. These include living a green and low-carbon lifestyle, carrying out the "Clear Your Plate" campaign against wasting food, buying environmentally friendly clothing, refusing to purchase and eat wild animals and their products, and jointly preventing the invasion of alien species. The popularization and application of new media, AI, smart phones, and high-quality online databases has increasingly diversified the forms of public participation in biodiversity conservation. On the occasion of the upcoming COP15 meeting, we encourage public engagement in biodiversity conservation. You can make contributions in various forms, such as participating in relevant projects and sharing knowledge about biodiversity conservation with your family and friends. No matter how big or small, every contribution counts tremendously, and together they will make a huge difference. Thank you.

Chen Wenjun:

Today's press conference is hereby concluded. Thank you. Goodbye!

Translated and edited by Zhang Rui, Wang Wei, Zhou Jing, Huang Shan, Liu Jianing, Yuan Fang, Guo Yiming, Ma Yujia, Duan Yaying, Li Huiru, Zhang Tingting, Liu Qiang, Zhang Liying, Yang Xi, Lin Liyao, Chen Xia, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Xu Lin, deputy director of the Publicity Department of the Central Committee of the Communist Party of China and minister of the State Council Information Office (SCIO)

Ning Jizhe, member of the Leading Party Members' Group and deputy head of the National Development and Reform Commission (NDRC), and secretary of the Leading Party Members' Group and commissioner of the National Bureau of Statistics

Liu Huanxin, deputy secretary of the Leading Party Members' Group and vice minister of the Ministry of Agriculture and Rural Affairs

Zhao Chenxin, member of the Leading Party Members' Group and secretary general of the NDRC

Chairperson:

Chen Wenjun, head of the Press Bureau of the SCIO and spokesperson of the SCIO

Date:

Sept. 28, 2021

Chen Wenjun:

Ladies and gentlemen, good morning. The State Council Information Office (SCIO) is holding a press conference today to issue and introduce a new white paper titled "China's Epic Journey from Poverty to Prosperity." Present at today's press conference are Mr. Xu Lin, deputy director of the Publicity Department of the Central Committee of the Communist Party of China (CPC) and minister of the SCIO; Mr. Ning Jizhe, member of the Leading Party Members' Group and deputy head of the National Development and Reform Commission (NDRC), and secretary of the Leading Party Members' Group and commissioner of the National Bureau of Statistics; Mr. Liu Huanxin, deputy secretary of the Leading Party Members' Group and vice minister of the Ministry of Agriculture and Rural Affairs; and Mr. Zhao Chenxin, member of the Leading Party Members' Group and secretary general of the NDRC.

Next, I will give the floor to Mr. Xu Lin.

Xu Lin:

Ladies and gentlemen, friends from the media, good morning. At the ceremony marking the centenary of the CPC on July 1, General Secretary Xi Jinping declared that China had realized the first centenary goal of building a moderately prosperous society in all respects through the continued efforts of the whole Party and the entire nation.

Today, the SCIO issued a white paper titled "China's Epic Journey from Poverty to Prosperity." The white paper reviews China's journey to moderate prosperity, elaborates on the achievement of building a moderately prosperous society in all respects, and offers bright prospects for the country's modernization. The important document records and reflects China's practice of building a moderately prosperous society in all respects.

At more than 32,000 Chinese characters, the white paper consists of preface, main body and conclusion. The main text is divided into five parts: A Critical Step Towards National Rejuvenation, Prosperity Through All-Round Development, Prosperity for All, Prosperity Through Hard Work, and The World Benefits from China's Prosperity. The document provides a systematic explanation of what moderate prosperity in all respects in China is and how it was realized.

First, the realization of moderate prosperity is a critical step toward national rejuvenation. "Xiaokang," meaning moderate prosperity, has been a consistent dream and aspiration of the Chinese nation for millennia. More than 2,000 years ago, the term appeared in the "Book of Songs" to mean modest comfort: "The people are hard-pressed, they need some modest comfort." Centuries later, the "Book of Rites" described the ideal state of society that "xiaokang" would bring about. From the outset, the CPC has made the wellbeing of the Chinese people and the rejuvenation of the Chinese nation its abiding goals. The Party is committed to creating a happier and better life for the Chinese people. The white paper reviews how the Chinese people, led by the CPC, have persevered, progressing step by step from a subsistence standard of living to piecemeal prosperity, then to moderate prosperity. The document records that in the new era, General Secretary Xi Jinping has assumed leadership, made plans, and pushed forward the efforts to build a moderately prosperous society in all respects. He has rallied around him Party members and the Chinese people, and led them in eliminating absolute poverty, advancing reform, combating COVID-19, controlling pollution and defusing risks. Under his leadership, the Party and the country have achieved historic successes and transformations in the pursuit of their cause. The moderately prosperous society in all respects has come to fruition as scheduled, marking a critical step toward national rejuvenation. According to the white paper, the realization of moderate prosperity has boosted the Chinese people's pride and confidence in the nation, and inspired further endeavors on the quest for national rejuvenation.

Second, moderate prosperity in all respects has been achieved through all-round development. All-round development is essential to moderate prosperity. In pursuing moderate prosperity, China emphasizes balanced, coordinated and sustainable progress in the economic, political, cultural, social, and eco-environmental fields. It aims to meet people's growing needs in all areas and at all levels, and to promote their well-rounded development. Moderate prosperity makes China a strong and prosperous country striving for national rejuvenation and the people's wellbeing. With a large amount of facts and data, the white paper offers a comprehensive picture of moderate prosperity from various perspectives: sustained and healthy economic growth, greater people's democracy, a flourishing cultural sector, improved living standards, and historic progress in the eco-environment. The achievements include both material progress and advances in culture and ethics; both improvements in the lives of individuals and development of our nation and society; and both tangible and intangible outcomes. In short, moderate prosperity represents progress in every aspect and dimension.

Third, prosperity for all. Working to benefit the people is fundamental to a moderate prosperity society. While building itself into a moderately prosperous society, China has always put the people first so as to ensure that all people can share the fruits of development. It is a society where no individual, region or ethnic group is left behind, and a society where people from all ethnic groups can enjoy a happy and comfortable life in every corner of China's vast land. The white paper introduced China's success in the battle against poverty which has helped poor people rise out of poverty and achieve moderate prosperity along with the rest of the country, as well as China's integrated urban-rural development to ensure urban and rural areas complement each other and advance side by side, like two wheels of a cart. The white paper also introduced China's more coordinated development across regions. China has shaped a new framework of coordinated regional development, featuring reinforcing connectivity, clearly defined core functions for each area, and complementary advantages. According to the white paper, a moderately prosperous society in all respects embodies the organic unity of realizing the well-rounded human development and common development for all, and the major goal of socialism of achieving common prosperity,. 

Fourth, prosperity through hard work. China is the world's largest developing country with more than 1.4 billion people. For China, a better life can only materialize through hard work rather than waiting and wanting. The CPC has united and led the Chinese people in rebuilding the country from scratch through self-reliance and hard work, achieving the moderate prosperity which has been an aspiration for thousands of years. Focusing on working for the people, and working scientifically, arduously and continuously, the white paper introduced the extraordinary and arduous journey of building a moderately prosperous society from the following four aspects, including always putting the people first, developing sound policies and strategies, development through reform and opening up and perseverance over generations. The white paper said that the moderately prosperous society in all respects has been achieved in China through much hard work by the Chinese people. It is the Chinese people who have created a better and moderately prosperous life, said the white paper. The CPC leadership has provided the fundamental guarantee for realizing moderate prosperity. Without the leadership of the CPC, there would be no moderate prosperity, according to the white paper. 

Fifth, in achieving moderate prosperity for the Chinese people, China has contributed to its own development and delivered benefits to the rest of the world. China cannot develop in isolation from the rest of the world, nor can the world achieve prosperity without China. The growing prosperity of Chinese people and continuous development and progress of China has created positive momentum for world peace and common development. Achieving moderate prosperity in all respects has made China more prosperous, the people happier, and society more stable. This is how China is contributing to world peace and development in its own right. In achieving a moderately prosperous society, China has helped to dramatically reduce the world's poverty-stricken population, and offered enlightenment for the modernization of mankind, said the white paper. In the future, China will embrace the world in a more open and inclusive manner, have more positive interactions with the rest of the world, and contribute even more to building a community with a shared future for humankind and a better world, according to the white paper. 

China's realization of moderate prosperity in all respects has achieved the phased goals of China's modernization drive and taken a key step forward in the national rejuvenation. At the same time, unbalanced and inadequate development still poses a stern challenge. China will acquire a better understanding of the new development stage, implement the new development philosophy, foster a new development paradigm, and propel its unique modernization forward to make substantial progress in well-rounded human development and common prosperity while realizing high-quality development.

With the firm leadership of the CPC, and the united efforts of all Chinese people both at home and abroad, China will build itself into a great modern socialist country, the Chinese people will live a happier and better life, and the Chinese nation will make greater contributions to the progress of human society, according to the white paper.

That's all for my introduction. Thank you.

Chen Wenjun:

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

CCTV: 

The key phrase of the white paper is "moderate prosperity in all respects." How to understand and interpret that? What are your assessment criteria? As you mentioned, working to benefit the people is fundamental to moderate prosperity. In this regard, will people's income and living standards be substantially improved? What are the defining indicators? Thank you. 

Zhao Chenxin:

Thank you very much for your questions – I'll take them. These are very good questions, short but rich in content. As far as I can see, they involve the definition of "moderate prosperity in all respects," indicators for its evaluation, and changes it has brought to people's wellbeing. I'll give you my answers from these three aspects one by one.

First, on how to understand moderate prosperity in all respects. As Mr. Xu highlighted just now, the first sentence of the white paper says that "achieving moderate prosperity fulfills a long-cherished dream of the Chinese nation." Over the past century, led by the CPC, generations of Chinese people have persevered, progressing step by step from a subsistence standard of living to piecemeal prosperity, then to moderate prosperity throughout the country, thus marking a critical step towards realizing the Chinese Dream of national rejuvenation. Since the 18th CPC National Congress in particular, the CPC Central Committee with Comrade Xi Jinping at its core has prioritized the realization of moderate prosperity in its governance, ensured coordinated implementation of the five-sphere integrated plan and the four-pronged comprehensive strategy, focused on tackling areas of weaknesses, and implemented targeted poverty alleviation measures, presenting a series of important ideas and concepts and taking a number of major measures to ensure that the building of a moderately prosperous society in all respects is completed on schedule. The key to building a moderately prosperous society in all respects lies in "all respects." In my view, moderate prosperity in all respects means coordinated economic, political, cultural, social, and eco-environmental progress, to the benefit of the entire population and covering both urban and rural areas. To this end, we need to address areas of weakness and facilitate a more balanced, coordinated, and sustainable development. The white paper elaborates on all these points in great detail. I believe that you will gain more understanding and findings from a closer look at it.

Second, on the indicators for its evaluation. At its 18th National Congress, the CPC announced that China would realize the First Centenary Goal of building a moderately prosperous society in all respects. It defined the metrics for such a society: sustained and sound economic development, greater people's democracy, a significant improvement in cultural soft power, higher living standards, and major progress in building a resource-conserving and environment-friendly society. At its 19th National Congress, the CPC conducted a comprehensive analysis of the fundamental conditions required to achieve all-around moderate prosperity and the internal and external factors impacting this process. On this basis, it defined a strategy for securing success in building a moderately prosperous society in all respects and embarking on a journey to fully build a modern socialist China. General Secretary Xi Jinping has assumed leadership, made plans, and pushed forward the efforts to build a moderately prosperous society in all respects. As Mr. Xu highlighted just now, with efforts in eliminating absolute poverty, advancing reform, combating COVID-19, controlling pollution, and defusing risks over these years, China has addressed many long-standing and complex problems and achieved many objectives where progress had been slow. We have seen historic successes and transformations in the pursuit of the cause, and the Chinese people have gained a stronger sense of fulfillment, happiness, and security. In particular, the country has put an end to absolute poverty – a basic objective – I think, and the most defining indicator of building a moderately prosperous society in all respects.

Third, on people's wellbeing. A moderately prosperous society in all respects puts people first and places their wellbeing above anything else. The people are at the center of the philosophy of the CPC, and improving people's lives and wellbeing is the Party's goal. People's lives have been notably improved as a result. Here are some data: the average per capita disposable income made a huge jump from 171 yuan in 1978 to 32,189 yuan in 2020 and the Engel coefficient of urban residents dropped from 57.5% in 1978 to 29.2% in 2020, and that of rural residents from 67.7% to 32.7%. Once basic needs for food and other daily necessities have been satisfied, people want a better life, including better food, clothes, housing, and travel facilities. Subsistence-based consumption is gradually giving way to a model directed towards greater fulfillment and comfort. They are fully supplied with daily necessities and own a range of home appliances, and car ownership is common. Consumption of services such as catering, health care, education, tourism, culture, and entertainment has continued to surge. With the improvements in employment, education, social security, medical care, social governance, and other public services, their rights to subsistence and development are well protected. There are a lot more detailed data and examples in the white paper providing evidence for these changes. I hope you will gain a better understanding with a closer look at it. Thank you.

Bloomberg:

How big is the wealth gap now? How will the country control and narrow it? Will tax policies make a big difference? Thank you.

Ning Jizhe:

I'll answer your questions. Wealth inequality is a very important economic challenge. It is fair to say that in the process of building a moderately prosperous society in all respects, China has seen poverty going down and its people becoming increasingly richer. Since the 18th CPC National Congress, China has made continuous leaps in economic strength, all-around progress in people's living standards, and gradual improvements in the distribution of residents' income. Despite disparities, gaps in residents' income between urban and rural areas, among different regions, and among different groups are narrowing in general.

First, the income gap between urban and rural residents has continued to narrow. As a result of poverty alleviation, as well as further agricultural and rural reform and development, the income of rural residents has grown significantly faster than that of urban residents and the income gap between them has continued to shrink. In terms of income growth, the per capita disposable income of rural residents grew at an average annual rate of 10.6% in nominal terms from 2011 to 2020, 1.8 percentage points faster than that of urban residents. In terms of the income ratio of urban and rural residents, their per capita disposable income ratio had dropped year by year from 2.99 in 2010 to 2.56 in 2020, a cumulative decrease of 0.43. The figure went down by 0.08 in 2020 compared with the previous year, the fastest decline since the 18th CPC National Congress.

Second, income disparities between regions have been reduced year-by-year. With the implementation of the coordinated regional development strategy and other new regional strategies, the income gap has been narrowed along with and because of a reduction in the development disparity between regions. Between 2011 and 2020, disparities in per capita disposable income between the richest and poorest provincial-level regions were reduced year-by-year, with the ratio falling from 4.62 (of Shanghai to Tibet autonomous region) in 2011 to 3.55 (of Shanghai to Gansu province) in 2020, the lowest in the 21st century. In 2020, the eastern-western income ratio stood at 1.62, down 0.08 from 2013; the central-western income ratio stood at 1.07, down 0.03 from 2013; and the northeastern-western income ratio stood at 1.11, down 0.18 from 2013.

Third, the income gap between different groups has generally been narrowed. The Gini coefficient is commonly used to gauge measuring income inequality. The World Bank estimates the Gini coefficient by both disposable income and consumption expenditure. When estimated by disposable income, China's Gini coefficient showed a generally fluctuant decline over the last decade. In 2008, the Gini coefficient calculation for per capita disposable income of Chinese residents hit 0.491, the highest in years. Since 2009, it has displayed a downward trend and declined to 0.468 in 2020, down 0.023 from 2018. Meanwhile, income distribution has improved. During the 13th Five-Year Plan period, the per capita net transfer income of residents nationwide grew by 10.1% annually, faster than residents' income growth. Furthermore, according to the World Bank, China's Gini coefficient of consumption expenditure stood at 0.385 in 2016, 0.080 lower than the country's Gini coefficient of disposable income over the same period. Consumption data can better reflect the real living standards of Chinese residents.

Fourth, we have accelerated the realization of equal access to basic public services. The income of Chinese residents covers both household disposable income and public services offered by the government for improving people's lives. In the process of building a moderately prosperous society, all local authorities and government departments have taken active steps to promote equal access to basic public services. Noticeable progress has been made in improving the multi-tiered social security system. China has established the world's largest social security network. The country's basic medical insurance covers more than 1.35 billion people and its basic old-age insurance covers more than 1 billion people. The housing security and supply system has been steadily developed. China has built more than 80 million units of government-subsidized housing and housing for people displaced by urban transformation. It has also improved the housing conditions of more than 200 million poor people. Continuous progress has been made in ensuring equal access to education, and the quality of education has markedly improved. In 2020, the completion rate of nine-year compulsory education reached 95.2%. Basic medical and public health services have also been improved. In 2020, expenditure in the general public budget for health services reached 1.92 trillion yuan. People's work-based earnings, operative income and transfer income have also increased. Meanwhile, aside from household income, some other types of income have been offered through public services. In a country of socialism with Chinese characteristics like us, all government departments and local authorities have done tremendous work in this regard.

During the 14th Five-Year Plan period, we will further contain and narrow the gap between the rich and the poor. We should both make the cake bigger and share it fairly. We will focus on development as the top priority and increase the resident's income by developing the economy, working hard and creating jobs. Meanwhile, we will uphold the system in which distribution according to work is dominant, but support it with a variety of modes of distribution, so as to raise the proportion of labor remuneration. We will improve the mechanism of regular wage growth and strive to increase the income of low-income groups while expanding the size of the middle-income group. We will also improve distribution policies and systems based on production factors to increase the factor income of low-and-middle-income groups. We will develop a more rational wealth and income redistribution mechanism, making more intense and accurate adjustments to taxation, social security, and transfer payments. We will give play to tertiary distribution to support the development of charity. Meanwhile, we will build a basic system to arrange and coordinate the primary, secondary and tertiary distribution to promote social fairness and justice, and the well-rounded development of all. By doing so, we will make a steady stride on the way to realizing common prosperity for all.

You just mentioned taxation in particular, which has played an important role in income distribution. We should make sure taxation plays a fully leveraging role in primary, secondary and tertiary distribution. Thank you.  

Phoenix TV:

China completed its mission of eradicating absolute poverty by the end of 2020 as scheduled and built a moderately prosperous society in all respects this year. Next, China will promote common prosperity while pursuing high-quality development. What is the relationship between these three stages? Thank you.

Xu Lin:

Thank you for your question. Ensuring that the people enjoy happy lives is the ultimate goal of the CPC. Over the past century, generations of Chinese Communists have fought for this goal. The CPC united and led the people in making enormous efforts to eradicate absolute poverty, and achieve moderate prosperity and common prosperity. It reflects the unity of continuity and stage of socialist modernization, as well as the CPC's deepened understanding and sustained efforts to reduce income inequality. 

On one hand, the three stages of eradicating absolute poverty, and achieving moderate prosperity and common prosperity are interrelated and internally consistent. They conform to the trends of the times for peaceful development, and reflect the common aspirations of the people. They are unified with the cause of socialism with Chinese characteristics, the difficult exploration of socialist modernization and the Chinese Dream of national rejuvenation, which shows the strong desire of the Chinese people to pursue a happy life.

More specifically, first, the three stages all reflect the Party's fundamental purpose of wholeheartedly serving the people, the Party's original aspiration of bringing happiness to the Chinese people and national rejuvenation to the Chinese nation, and the Party's continued commitment to a people-centered approach and putting the people first. Second, they all reflect an essential requirement of socialism, which is promoting well-rounded human development, as well as fulfilling people's aspirations for a better life, focusing on balanced, coordinated and sustainable development, and are to be enjoyed by each and every one of the people. Third, in promoting the three stages, we should uphold the leadership of the CPC, forge ahead on the path of socialism with Chinese characteristics, and leverage the political advantages of the socialist system. In addition, in promoting the three stages, we should liberate and develop the productive forces on the basis of development and gather strength and work together. These are the shared aspects of the three stages.

On the other hand, the features of the three stages are emphasized differently. In terms of their contents, they are all different and constantly being enriched. The aim of eradicating absolute poverty is to solve the problem of poverty. Building a moderately prosperous society in the economic, political, cultural, social and eco-environmental fields promotes a happier life for the people. Common prosperity refers to wealth being shared by all, both in material and cultural terms, to realize well-rounded human and social development.

In terms of their goals, the three stages follow on from each other. Poverty alleviation is a key task and index in the realization of moderate prosperity. Only by eradicating absolute poverty can we ensure success in the goal of achieving a moderately prosperous society in all respects. A moderately prosperous society in all respects is an important foundation for realizing common prosperity. Only by building a moderately prosperous society in all respects can we lay a solid foundation for realizing common prosperity. Common prosperity is the goal of poverty alleviation and moderate prosperity. Only by promoting common prosperity can we truly consolidate the achievements of poverty alleviation and moderate prosperity, and highlight the advantages of socialism with Chinese characteristics.

As you mentioned in your question, China has achieved the First Centenary Goal of building a moderately prosperous society in all respects. However, the existing problems of imbalances and inadequacies in development mean there is still a long way to go. We will shore up points of weakness and consolidate the foundations to expand the achievements of poverty elimination with an emphasis on promoting rural vitalization. We will make substantive progress toward achieving well-rounded human development and common prosperity for all, while also pursuing high-quality development. Thank you.

Economic Daily:

In recent years, society has witnessed great changes in every aspect of people's lives. At the same time, we have noticed that people are still facing difficulties in housing, medical care, education, elderly care, and other areas. How do you see these problems, and how will you solve them? Thank you.

Zhao Chenxin:

I'll answer this question. Thanks for your question, which is a very important one. Our people are still facing some difficulties and having some appeals on several direct and practical areas. How should we see these problems, and how will we solve them?

The CPC has always placed ensuring and improving people's wellbeing as a top priority to achieving a moderately prosperous society in all respects and made constant efforts to solve prominent problems affecting the vital interests of the people. As a result, over 1.4 billion Chinese people have begun to live the happy lives that they have dreamed of for thousands of years. Their rights to subsistence and development have been effectively protected. Significant progress has been made in ensuring access to childcare, education, employment, housing, medical services, elderly care, and social assistance. However, ensuring and improving people's wellbeing has no end but only new starting points. We think that the difficulties you have mentioned in medical care, housing, education, and other areas are the pursuit of better doctors, better housing, better schools, and better lives. It is a question of whether the quality is good or not after the question of access has been properly solved, which relates to new worries in the new development stage of people's livelihoods. These problems show that after achieving a moderately prosperous society in all respects, the macro environment and internal conditions for improving people's wellbeing are facing new changes. People's needs for a better life have become more extensive since they have more and higher-level demands for steadily rising incomes, quality medical services, more equal education, and better living conditions. In the new development stage, we have to adapt to these new changes, adhere to a people-centered development philosophy and do our best to resolve pressing difficulties and problems that are of the greatest concern to the people, to resolve more prominent problems, and practically ensure people's livelihood. 

In the aspect of public services, during the next five years, we will actively adapt to people's desire for a better life and focus on public issues that are most pressing, most practical, and of greatest concern of people's livelihood. We will define the scope of basic and non-basic public services in a scientific and reasonable way, continuously promote the equalization of basic public services, and expand the multiple and inclusive supply of non-basic public services. We will also mobilize multifaceted forces at the levels of government, society, market, and the individual to strengthen weak links and improve quality in order to achieve the final goal of pursuing better access to childcare, education, employment, housing, medical services, elderly care, and social assistance.

Next, we will promote the building of a public service system in two areas. First, governments will provide equal access to basic public services. We will focus on ensuring people's basic living needs and fulfilling the duties of governments at all levels of basic public service supply. We will effectively increase input, continuously improve the standard system, optimize resource allocation efficiency, and advance equal access to basic public services. By doing these, all citizens are expected to get fair and roughly equal basic public services so that the bottom line of people's livelihood can be guaranteed. Second, we will make efforts to expand the multiple and inclusive supply of non-basic public services. Governments should fulfill their guiding responsibilities to encourage and support public institutions, social organizations, the state-owned economy, and multiple subjects to participate in non-basic public service supply, enrich the service supply, and effectively reduce service costs. We will gradually make non-basic public services available after paying – at affordable prices – with guaranteed quality and supervised safety to achieve a dynamic balance between supply and demand and ensure inclusive public services.

By distinguishing basic and non-basic public services, we can clear rights and liabilities, highlight key points, utilize limited financial funds in the most needed and pressing areas of people's livelihoods, and collect more social resources for public services. As a result, we can fully mobilize all positive factors to effectively tackle pains and difficulties and remove barriers to people's livelihoods and meet the people's ever-growing needs for a better life, improving people's livelihoods in line with economic development to create a better life together. Thank you.

Xinhua News Agency:

We often say that "Whether China has achieved prosperity will be judged by the conditions of the rural areas." After the victory in poverty alleviation, we will now comprehensively promote rural vitalization. How has progress been made over the years since the implementation of the rural vitalization strategy? In the next step, what are the considerations and arrangements for promoting the continuous increase in farmers' income and further narrowing the income gap between urban and rural residents?

Liu Huanxin:

Let me answer this question, and thank you for your attention to agriculture, rural areas, and farmers. The implementation of the rural vitalization strategy is a major deployment made by the 19th CPC National Congress, focusing on achieving two centenary goals. After nearly four years of hard work, the implementation of the rural vitalization strategy has made great headway. First, we have a bumper grain harvest for 17 years in a row, which remains above 650 billion kilograms for six consecutive years. This year, despite the impact of COVID-19 and natural disasters such as floods, both summer grains and early season rice have increased production, and autumn grain is on course for an increase in output, forming a solid foundation for securing the year-round grain harvest. Also, the production capacity of live pigs has been restored. The food supply for 1.4 billion Chinese people has been secured through our own efforts. Second, agricultural modernization has been significantly accelerated. China has built a total of 800 million mu of high-standard farmland, the contribution rate of agricultural science and technology progress exceeds 60%, the comprehensive mechanization rate of crop cultivation and harvest has reached 71%, and the application of fertilizers and pesticides has experienced negative growth for four consecutive years. The ratio of agricultural product processing output value to total agricultural output value has increased to 2.4:1. New industries and new business formats such as rural tourism and rural e-commerce keep booming. Third, the overall victory has been won in the fight against poverty. A total of 98.99 million rural poor people were all lifted out of poverty, which historically solved the problem of absolute rural poverty. This year, we have established a dynamic monitoring and assistance mechanism for preventing a return to poverty. We have provided precise assistance to more than 5 million people identified as prone to return to poverty, and we have been dynamically clearing this to zero. We will firmly hold the bottom line of preventing large-scale poverty return. Fourth, solid progress has been made in rural construction. Electric power, hardened roads, and 4G networks are basically connected to each village, and sanitary toilets are used by more than 68% of rural households, and a unified basic pension, basic medical, and critical illness insurance system for urban and rural residents has been established. This year we have formulated an implementation plan for rural construction actions and strive for new achievements in the development of rural area during the 14th Five-Year Plan period. Fifth, rural governance has been more efficient. The construction of rural grassroots Party organizations has been strengthened, a rural governance system that combines autonomy, the rule of law, and the rule of virtue is gradually established, governance methods such as point system, inventory system, and digital empowerment are innovated and developed in various places, and more outmoded and undesirable habits and customs are updated, and the cultivation of civilized rural customs was accelerated.

Through the implementation of the rural vitalization strategy, agriculture develops steadily, rural areas are harmonious and stable, and farmers are happy and healthy, which vividly reflects the quality of building a moderately prosperous society in all respects. But after completing building a moderately prosperous society in all respects, there are still problems of uneven and insufficient development, and agriculture and rural areas, in particular, remain weak links, shortcomings, and weaknesses. In recent years, the income of farmers has continued to grow relatively fast, and the income gap between urban and rural residents has continued to narrow. However, the gap in development between urban and rural areas is still large, and the task of promoting the common prosperity of rural areas and farmers is very arduous. At present and in the future, we will continue to promote farmers' income as the central task of implementing the rural vitalization strategy, continuously optimize policy provision, expand income-increasing channels, enlarge the proportion of middle-income rural groups of people, and increase the income of low-income rural groups, and promote farmers' income to a new level, so that hundreds of millions of farmers can catch up and will not be left behind on the road to common prosperity. There are four main ways to increase farmers' income:

First, increase income through industrial vitalization. Prosperity of the industries is a prerequisite for solving all problems in the countryside, and it is also a bedrock of increasing farmers' income. At present, farmers' net operating income accounts for about one third of farmers' income. We must give top priority to industrial vitalization when it comes to rural vitalization and increase farmers' income by promoting high-quality development of rural industries. Especially, more income will be generated by high-quality agricultural products, the industrial chain, and cost reduction.

Second, increase income by expanding employment. Wage income accounts for more than 40%, which is the bulk of farmers' income. On the one hand, we must create more local jobs to increase income, implement supportive policies in finance, banking, land use, and talents to foster innovation and entrepreneurship and bolster employment and income growth, thus enabling farmers to be employed and make money locally. On the other hand, we will encourage farmers to seek a job in cities to increase their income, strengthen vocational education and skills training for farmers, improve their technological and cultural quality, improve pro-employment policies, and do everything possible to ensure migrant workers have stable jobs.

Third, increase income by deepening reforms. There are still a lot of "sleeping" resources in rural areas. They are the biggest source of potential for increasing property income and they must be activated through reforms.

Fourth, increase income by improving policies. Increasing the transfer income of farmers is an important part of improving the redistribution adjustment mechanism. We must focus on two types of groups: the first type is small agricultural households. For them. we must improve the agricultural support and protection system, stabilize and strengthen farmers' grain subsidies, and distribute beneficial agricultural funds to farmers on time and in full. The other type is low-income farmers. For them, we must establish and improve a normalized assistance mechanism, weave a dense social security safety net, and maintain the bottom line of preventing large-scale returns to poverty. Thank you.

CNBC:

What are the shortcomings in the development of China's first-tier cities? For instance, in terms of old-age service and social security, what are the future development direction and the priority of first-tier cities? Thanks.

Ning Jizhe:

Let me answer this question. Since the reform and opening up, Beijing, Shanghai, Shenzhen, Guangzhou, and other first-tier cities and other mega cities have witnessed substantial economic growth, significant population growth, continuous expansion of opening up, and vigorous development of social undertakings. They have become an important engine for China's economic growth, an important hub for opening up, and the important support for state governance. They have also increasingly become an important space carrier for people to live and work in peace and happiness to enjoy a better life. Meanwhile, these megacities also have "urban diseases" that are common in countries around the world, such as traffic congestion, high housing prices, and limited development. These are all problems in development, difficulties in progress, and troubles in growth. As for old-age service and social security, the overall level of the first-tier cities is not bad. The average life expectancy of several first-tier cities is above 80 years old, ranking among the best in all kinds of cities. What needs to be improved is to control the costs and get better services. The country's outline of the 14th Five-Year Plan 2021-2025 has made the planning and deployment to improve the spatial layout of urbanization and optimize and upgrade the functions of the central urban areas in megacities. The main aspects are as follows.

First, we will promote high-quality and sustainable development of megacities. 

We will make overall plans to take into account the diverse needs of economy, livelihoods, ecology, and security, promote the transformation of development and construction methods of megacities, and strengthen the prevention and control of urban governance risks. We adhere to the principle of building cities with a people-centered approach, deeply grasp the law of urban development, and coordinate the development and the safety. We will effectively promote the transformation of urban development mode from scale expansion to connotation enhancement, paying more attention to people's livelihoods, steadily improving the level of social security, and upgrading the modernization level of urban governance. With these methods, we will make cities healthier, safer, and more livable. At the same time, we will further strengthen the leading roles of megacities, constantly optimize the spatial pattern of economic development and achieve coordinated regional development to better drive rural revitalization and promote the integrated development of urban and rural areas.

Second, we will reasonably reduce the development intensity and population density of megacities. To scientifically plan the urban production, living and ecological space, we will decrease the functions and the related facilities as general manufacturing, regional logistics bases and specified markets in the central urban areas with an orderly manner, avoid excessive concentration of public resources, and strengthen risk prevention and control in urban governance. For example, based on the functional orientation of the national political center, cultural center, international exchange center, and scientific and technological innovation center, Beijing will build a harmonious, livable and beautiful capital. At the same time, focusing on the relief of non-capital functions, we will promote the coordinated development of Beijing-Tianjin-Hebei region to a higher level. The air quality monitoring and joint prevention and control in Beijing-Tianjin-Hebei region and its surrounding areas will be strengthened, and Beijing's advantages in scientific and technological innovation will be given play to drive the transformation and upgrading of traditional industries in Tianjin and Hebei, so as to enhance its driving role in the surrounding areas.

Third, we will optimize and enhance the core competitiveness of megacities. 

We will enhance the roles of megacities in global resource allocation, in driving scientific and technological innovation, and in leading the development of high-end industries, ensure that megacities take the lead in forming an industrial structure with modern service industry as the mainstay and advanced manufacturing as the prop, and enhance their overall capacity and international competitiveness. For example, Shanghai will enhance its overall urban capacity and core competitiveness to play a leading role in the Yangtze River Delta. Led by the "four functions" in global resource allocation, in driving scientific and technological innovation, in leading the development of high-end industries, and in developing the area as an opening hub, and by continuously promoting its roles as the "five centers" in areas of international economy, finance, trade, shipping and scientific and technological innovation, Shanghai will provide services for the Yangtze River Delta's high-quality development and participation in international competition, and lead the integrated development of the Delta. For another example, Shenzhen will take the construction of a pioneering demonstration zone of socialism with Chinese characteristics as the lead to build a comprehensive national science center and accelerate the promotion of major cooperation platforms between Guangdong and Hong Kong in Qianhai and Hetao. Shenzhen will also take the lead in practicing the connection of rules and mechanisms in the Guangdong-Hong Kong-Macao Greater Bay Area, give full play to its role as the core engine in the construction of the Greater Bay Area, and facilitate and drive the development of its surrounding areas. Guangzhou will also play an important role in the construction of the Greater Bay Area, including improving the Guangzhou-Shenzhen-Hong Kong and Guangzhou-Zhuhai-Macao science and technology innovation corridors. Thank you.

People's Daily:

Over the years, we have witnessed material progress as well as great changes to our cultural activities. What's your view on that? Next, what policies and measures will China adopt to meet the growing cultural needs of the people and what will be done to enrich their cultural activities? Thank you.

Xu Lin:

Let me take your questions. As for moderate prosperity in China, material progress should go hand in hand with advances in culture and ethics. The people should have sufficient food and other daily needs, but they should also conduct themselves with dignity and a strong sense of morality. In the process of realizing a moderately prosperous society in all respects, the Chinese people have made both material and cultural progress.

Changes in cultural activities can be seen in all-round cultural prosperity, the rapid development of cultural industry, as well as people engaging in more diversified and active cultural activities.

First, cultural products continued to be enriched. Excellent books, radio programs, films, television programs, literature and art works, and works in philosophy and social sciences have continued to emerge and meet the multi-level and diverse cultural needs of the people. Literature and art production has seen great progress. Book publishing has strengthened the supply of high-quality content, with more and more quality books published. Now, a reading campaign is carried out nationwide. At present, the reading rate of Chinese adults stands at 81.3%. In recent years, Chinese films have also developed rapidly. The number of cinema screens in China has reached 80,000, ranking first in the world. With a quality growth in film production, popular blockbuster hits such as "My People, My Country," "The Sacrifice," "The Pioneer," and "The Wandering Earth" have continued to emerge. The box-office number increased year-by-year, surpassing 60 billion yuan for the first time in 2018, and reaching more than 64.2 billion yuan in 2019, ranking second in the world. Despite that global box-office decline amid the COVID-19 pandemic over the past two years, China's box office number topped the world last year, exceeding 20.4 billion yuan, and continued to rank first globally in the first eight months of this year, reaching 32.8 billion yuan. All these reflect cultural changes in China.

Second, public cultural services are more standardized and equally accessible, with a six-tier network of public cultural facilities being built across urban and rural areas. By the end of 2020, China had over 3,200 public libraries, 5,700 museums, 600 art galleries, 3,300 cultural centers, 32,000 township and town-level cultural stations, and more than 575,000 village-level cultural service centers. Most of our public libraries, museums and art galleries are open to the public free of charge or at a low cost. More high-standard cultural facilities are under construction.

Third, the cultural and tourism industries are now more integrated. Money and time are important for traveling. Now, more and more people have sufficient time and money to go on a trip at any time, explore their dreams away from the hustle and bustle of daily life, and enjoy China's beautiful landscape. In 2019, China welcomed over six billion domestic tourists, and grossed 5.7 trillion yuan from this sector.

Cultural changes are also reflected in that China's continued growth and cultural development have enhanced the inner strength of the Chinese people, and profoundly changed their spiritual outlook from being oppressed 100 years ago to being treated equally in the world today. The Chinese people has more confidence in the path, theory, system and culture of Chinese socialism. The spirit of patriotism, reform, innovation and hard work in the new era are taking root. Good traditions in Chinese culture, including filial piety, keeping a diligent and friendly attitude, helping those in difficulties or danger, upholding morality while advocating good deeds, and acting bravely for a just cause, have been promoted, filling society with uplifting energy.

Today, the Chinese people are more open-minded and have gained deeper understanding of innovation, rules, and markets. The nation is turning towards a thrifty, green, low-carbon, and healthy lifestyle. Facing difficulties and challenges in development, the Chinese people have overcome difficulties with a strong will and hard work. They have truly created a miracle in the world.

China has built a moderately prosperous society in all respects and is making solid progress towards the goal of common prosperity. The people have more expectations and better requirements for cultural life. Common prosperity is both material and cultural. We will stick to a people-centered development philosophy, focus on the problem of unbalanced and inadequate development in the cultural field, and strive to make efforts on three aspects: inclusiveness, diversity and quality, so as to enhance the people's sense of cultural acquisition and happiness.

Inclusiveness means to pay attention to balance and equality, continue to improve the public cultural service system, strengthen the construction of cultural infrastructure, strive to eliminate the gap between urban and rural areas and regions, better protect people's basic cultural rights, and let more people participate in cultural creation and enjoy cultural nourishment. Diversity refers to the enhancement of cultural supply capacity and the enrichment of cultural products in accordance with people's cultural needs in various aspects, such as seeking knowledge, beauty and happiness, and the individualized, differentiated, diversified and multi-level cultural needs of different individuals and groups. Quality means that we must strive to create masterpieces that are of high quality, with good taste, and close to life. The works must appeal to people and lead the times. They must convey truth, goodness and beauty, and spread positive energy. People will thus enjoy a richer and higher quality cultural life. Thank you.

NTV:

The accelerated risks of fewer children and an aging population in China may have an impact on China's future economic development. Under such circumstances, can China continue to maintain a moderately prosperous society in all respects? Thank you.

Ning Jizhe:

I will answer this question. Thank you. Since the beginning of the century, changes have taken place in the structure and number of China's population. The seventh national census in 2020 has comprehensively investigated the number, structure and distribution of China's population, and this result has been published. Although the growth rate of China's total population has slowed down, the total fertility rate has declined, and the degree of aging has deepened, on the whole, the demographic dividends still exist. We also now have a talent dividend, and the health of Chinese people has been continuously improved. With the gradual improvement of the population policy, China will maintain long-term momentum in economic growth. Human resources will provide a solid guarantee for building a modern socialist country on the basis of building a moderately prosperous society in all respects .

First, labor resources are still abundant and demographic dividends continue to exist. China is still the most populous country in the world. The total population is still growing, and the total working-age population is still huge. China's working-age population, aged 16-59, has reached 880 million, and there are more than 300 million women of childbearing age, which can maintain a birth population of more than 10 million every year. In 2020, the total number of migrant workers in China reached 286 million. The dividends generated by population growth still exist, and labor resources are still abundant, which will provide population support for sustainable economic development. 

Second, the quality of the population has significantly improved, and new advantages of talent dividends have gradually emerged. Over the past decade, the education level of China's population has significantly improved. In 2020, the average number of years of education of China's working-age population aged 16-59 reached 10.75 years, an increase of 1.08 years compared with 9.67 years in 2010. In the past decade, education has made great progress, with 208 million people now having a college education or above, accounting for 23.61% of the working-age population, a sharp increase of 11.27 percentage points over 2010. The proportion increased by more than 10 percentage points, nearly doubling. This will help accelerate the transformation of China's economic development mode, optimize and upgrade the industrial structure, and continuously improve the total factor productivity, thus providing new talent support for high-quality economic development.

Third, people's health has improved significantly, and conditions for labor resources have been optimized. Health is important for both well-being and productivity. With the reform and development of medical and health services, the physical quality of Chinese people has improved significantly. China's life expectancy reached 77.3 years in 2019, an increase of 2.47 years over 2010, which is a significant increase. The physical condition of middle-aged and elderly people has improved generally. Although many people have reached old age, their physical condition is still quite good. The infant mortality rate and maternal mortality rate also dropped to 5.4 per 1,000 and 16.9 per 100,000 in 2020, respectively, with improvements in physical fitness at both ends of the spectrum. On the whole, the health level of Chinese residents is better than the average level of middle and high-income countries. The achievements in health care also provide effective labor support for sustainable economic development. Improved physical health is conducive to the functioning of labor resources.

Fourth, the number of children increased and their proportion as a part of the population rose. A new generation of labor resources is growing up. The number of births rebounded as a result of decisions and policy measures such as the "selective two-child" policy and the "universal two-child" policy. Data from the Seventh National Population Census show that the number of children aged 0-14 increased by 30.92 million compared to 2010, and their proportion rose by 1.35 percentage points. The birth rate of second child saw a significant increase, and the proportion of babies born as a second child rose from about 30% in 2013 to about 50% in 2017. This year, the implementation of three-child policy and supportive measures will be conducive to the growth of the birthrate and the improvement of age composition, to achieve long-term and balanced demographic development. Thank you. 

The Paper.cn:

A moderately prosperous society means there will be more active consumption activities created with higher level and quality. Under the current economic conditions, how will the government ensure the steady growth of consumption, and how will they promote the upgrading of consumption? Thank you.

Zhao Chenxin: 

I will answer your question, thank you. It's a very good question. You all have a keen interest in consumption. Over the years, China's consumption has been scaled up in a steady manner and there has also been an improvement in the consumption structure. More business forms are thriving and we are continuing to optimize the consumption environment, to meet people's diversified and multi-tiered needs for consumption. In 2019, the per capita consumption expenditure of residents exceeded 20,000 yuan for the first time. Service consumption expenditure took up 45.9% of the per capita household consumption expenditure, nearly half of the total, 4.8 percentage points higher than that of 2015. Consumption drove GDP growth up by 3.5 percentage points, being the primary driving force of China's GDP growth for the 6th consecutive year in 2019. After the COVID-19 outbreak, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, all departments and local governments followed the general principles of pursuing stable performance and making new progress, coordinating epidemic control with socio-economic development. China's economy continues to show its resilience, and consumer demand has maintained a steady recovery. In the future, as China accelerates towards a new development paradigm, expands domestic demand and moves towards common prosperity, with the middle-income group expanding and new products, business forms and models emerging in consumption sector, I believe that China will continue to expand its consumption sector, and will not slow down its steps to boost consumption upgrading. The overall trend for meeting people's needs for a better life and unleashing consumers' willingness will not be altered.

Going forward, on the basis of strict epidemic control measures, we will stick to the strategy of expanding domestic demand, and coordinate supply-side structural reform and demand-side management. We will take targeted measures to tap into the household consumption potential, expand the scale of consumption and improve quality. We will carry out works in five aspects to boost and upgrade consumption, which are as follows:

First, we will work to enhance residents' abilities and willingness to consume. In accordance with routine epidemic control measures, we will improve the system to ensure daily life supplies, and roll out relevant polices and measures. We will take measures to both increase people's income and ease their burdens. We will work to build an innovative system that facilitates a virtuous cycle through the whole process of employment, the distribution of income and consumption so as to improve people's willingness and abilities to consume in a steady manner.

Second, we will work to provide better services and products. The expansion of consumption will be aligned with the goal of improving people's livelihoods. We will push forward the building of a supply system for high-quality consumption, and encourage enterprises to provide high-quality products and services at relatively low prices. We will make full use of various platforms to boost consumption, continue to carry out a series of consumption campaigns and leverage their roles in promoting consumption, such as "China Brand Day," National Consumption Promotion Month and the Brand and Quality Online Shopping Festival, among others. In addition, we will continue to convene China International Import Expo, the China International Consumer Products Expo and more, to pool together high-quality consumption resources at home and abroad to better meet the individual, diversified and medium- and high-end consumption needs of the Chinese people.

Third, we will work to unleash new driving forces for consumption. We will cultivate new types of consumption, stay attuned to the trend of consumption upgrading, and encourage the growth of new models and forms of consumption. We will promote the integrated development of online and offline consumption, and nurture a group of demonstrative cities and leading companies in promoting new types of consumption. We will ramp up efforts to promote green consumption, therefore leading to a green production. We will advocate green and low-carbon consumption and build a green consumption pattern. Efforts will be made to improve people's willingness to purchase green and low-carbon products and services.

Fourth, we will work to expand rural consumption. We will step up efforts to increase access to e-commerce and delivery services in rural areas, and push forward the modernization of circulation of agricultural products. Efforts will be made to improve the three-tiered e-commerce service system at the village, township and county levels, and the delivery logistics system as well. There will be an improvement in rural residents' willingness to consume when infrastructure is improved. We will work to improve services to facilitate people's life in rural areas. Efforts will be made to seek the digital and industrial development of agricultural products and services and make their development more brand-development focused and procedure-based. We will promote the transformation with regard to these aspects.

Fifth, we will work to optimize the environment for consumption, which is also a very important issue. We will strengthen the building of a consumer credit system and quality standard system. We will improve the mechanism on protecting consumers' rights and settling disputes in the consumption sector. We will carry out in-depth regulation on market orders and strengthen regulation on the quality and safety of consumer goods. We will ensure a consumption environment that is safe, credible and trustworthy. 

That is my answer for your question. Thank you.

China Daily:

As the world's second-largest economy, China is one of the major drivers of global economy. Last year, China was the only major economy in the world to register positive economic growth. Today, when and if the world economy will rebound remains unclear. Against this backdrop, what does it mean for the world that China has built a moderately prosperous society in all respect? What new development opportunities will it bring to the world economy? 

Ning Jizhe:

I will take these questions. China has achieved moderate prosperity in all respects, which means as the world's most populated country and the largest developing country, China's economy is strong and the people's well-being has been improved. That in itself is a significant contribution to the world's peace and development. Meanwhile, achieving moderate prosperity in all respects in China has not only fueled and provided opportunities to the world's economic resurgence, but also contributed Chinese wisdom and strength to the building of a community with a shared future for mankind. China's development needs the world, and the world's development also needs China. 

First, China's realization of moderate prosperity in all respects has made an impressive contribution to global poverty alleviation. As Mr. Xu introduced just now, since reform and opening up, 770 million poor rural people have been lifted out of poverty, accounting for over 70% of the world total during the same period. In 2020, the problem of extreme poverty in the country has also ended. China realized its poverty reduction goal from the UN 2030 Agenda for Sustainable Development 10 years ahead of schedule. More than 1.4 billion Chinese people have started a new journey toward fully building a modern socialist country, which will be an unprecedented transformation and also a monumental event in human history. In recent years, the number of people living in poverty around the world has not fallen but increased, and the global cause of poverty reduction fell on hard times. Against this background, China's achievement has dramatically reduced the number of poor people in the world, giving confidence and power to the global cause of poverty reduction.  

Second, China completion in building a moderately prosperous society in all respects has fueled economic growth and recovery all over the world. China had made the biggest contributions to global economic growth for 15 years straight starting from 2006, and its average contribution rate exceeded 30% for many years, which enables the country to be the major driver for global economic growth. In 2020, with its GDP exceeding 100 trillion yuan, China overcame the influence of the COVID-19 and became the only major power to deliver positive growth. In the first half of this year, China's economy increased by 12.7% year-on-year, which makes the country not only the major driver for global economic and trade recovery, but also allows it to play a positive role in stabilizing the global supply system. Over the past year or so, China has supplied hundreds of billions of masks, and hundreds of millions of vaccine doses to the world, supporting the fighting against the epidemic in various countries. 

Third, China's realization of moderate prosperity in all respects has brought great opportunities for the economic development of the entire world. At present, China is the second largest consumer market and largest goods trading power in the world, leading the world in terms of foreign capital utilization and outbound investment. Now that China is accelerating the fostering of a double development dynamic, with the domestic economy and international engagement reinforce each other, and the former as the mainstay, China is bursting out potentiality in the market and opening its door wider and wider. This is presenting the world with a broader market, greater cooperative opportunities and larger space to grow. By our estimation, over the next five years, China will import goods of more than $10 trillion and make direct investment worth of over $550 billion to other countries and regions, which will greatly bolster the global economic stabilization, recovery and continuous development.  

Finally, China's realization of moderate prosperity in all respects has opened up new ways for developing countries' pursuit of modernization. After more than seven decades of construction and development including over four decades of reform and opening up, China has achieved a tremendous transformation by raising the living standards of its people from bare subsistence to general prosperity. We have gone from a poor and backward country to the world's second largest economic power. We have gone from standing upright to becoming prosperous and growing in strength. In this process, we created the twin miracles of fast economic growth and long-running social stability, which do not only bring concrete benefits to the Chinese people, but also improve the state of the world. Since 2019, China's per capita GDP has exceeded by $10,000, which means almost 3 billion people in the world now enjoy per capita GDP exceeding $10,000 because of the 1.4 billion Chinese people joining and doubling the number. This is undoubtedly an enormous boon for the development of human society. The vivid practice of China's building a moderately prosperous society in all respects presents various countries and nations which would like to speed up development and remain independent with a brand-new choice. Thanks.

Chen Wenjun:

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

Translated and edited by Zhang Liying, Wang Qian, Gong Yingchun, Yang Xi, Zhang Jiaqi, Wang Yiming, Li Xiao, Zhang Rui, Wang Mengru, He Shan, Zhou Jing, Wang Zhiyong, Duan Yaying, Liu Sitong, Xiang Bin, Chen Xia, Cui Can, Huang Shan, Wang Yanfang, Li Huiru, David Ball, Jay Birbeck, 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:

Li Xiaojun, director and second-level inspector of the Publicity Department of the Bureau of Human Rights Affairs of the State Council Information Office (SCIO) 

Li Xiaomei, special representative for human rights of the Ministry of Foreign Affairs

Bie Tao, director general of the Department of Laws, Regulations and Standards in the Ministry of Ecology and Environment

Chang Jian, professor and director of the Research Center for Human Rights of Nankai University 

Chairperson:

Xing Huina, deputy head of the Press Bureau of the SCIO and spokesperson of the SCIO

Date:

Sept. 14, 2021

Xing Huina:

Friends from the media, good afternoon. Welcome to today's briefing held by the State Council Information Office (SCIO), which will expound on the Human Rights Action Plan of China (2021-2025). The speakers at today's briefing are Mr. Li Xiaojun, director and second-level inspector of the Publicity Department of the Bureau of Human Rights Affairs of the SCIO; Ms. Li Xiaomei, special representative for human rights of the Ministry of Foreign Affairs; Mr. Bie Tao, director general of the Department of Laws, Regulations and Standards in the Ministry of Ecology and Environment; and Chang Jian, professor and director of the Research Center for Human Rights of Nankai University. The speakers will first give you a brief rundown and then take your questions. First, I will give the floor to Mr. Li Xiaojun. 

Li Xiaojun:

Friends from the media, good afternoon. The realization of all-round moderate prosperity is an extraordinary human rights achievement that China has made and a new starting point on the country's quest for human rights. The National Human Rights Action Plan of China (2021-2025) is born of the times. It is a phased policy document for the Chinese government to implement the principle of "respecting and protecting human rights" from the Constitution of the Communist Party of China (CPC) and the Constitution, and to implement "promoting comprehensive progress in human rights" as proposed during the Fifth Plenum of the 19th CPC Central Committee. It is the first declaration and road map to respect and protect human rights on the new journey toward fully building a modern socialist country. This is the fourth national human rights action plan issued and implemented by the Chinese government.

This action plan highlights characteristics and favorable conditions of advancing the cause of human rights in China. It has four main features.

First, the formulation and implementation of the action plan is guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We have implemented General Secretary Xi's important expositions on human rights and stayed committed to a people-centered philosophy of development, believing that a happy life for the people is the most important human right. We defined new objectives and missions to meet new expectations in a new stage, working to resolve the most pressing difficulties and problems which are of great concern to the people. For example, in protecting the right to health, the plan proposes providing a complete range of health services to the people throughout their lifespan; it sets new targets and tasks to meet the people's ever-growing cultural needs after the realization of moderate prosperity; and it protects the right to education for ethnic minority groups and promotes standard spoken and written Chinese in ethnic minority areas while protecting their right to learn, use and develop their own spoken and written languages. 

Second, it reflects characteristics of the all-round development of China's human rights cause in the new era. Covering multiple areas, the action plan includes eight sections: introduction, economic, social and cultural rights, civil and political rights, environmental rights, protecting the rights of particular groups, education and research on human rights, participating in global human rights governance, and implementation, supervision and assessment. Nearly 200 objectives and tasks are proposed. Compared with the previous edition, the length of the fourth action plan has been greatly increased, and nearly 30 objectives and tasks have been added, of which indicators with obligatory objectives account for approximately one third. The new action plan reflects China's characteristics, favorable conditions and confidence in human rights theories, systems for respecting and protecting human rights, the human rights development path, and human rights culture.

Third, it highlights the eco-environmental rights. Protection of the ecology and environment is an important part of Xi Jinping Thought on Ecological Civilization and an integral part of building China into a modern socialist country. People's demands for a beautiful environment are growing, and the international community is also very concerned about that. This action plan sets out a separate section on "environmental rights," which was included in the "economic, social and cultural rights" section in the previous three action plans.

Fourth, the action plan is easy to implement. The action plan has put forward different targets and tasks for different categories of human rights. There are both qualitative and quantitative indicators, both binding and non-binding ones, and both periodic and long-term ones. It focuses on the continuity and operability of implementation. For example, there are long-term targets such as connecting poverty alleviation with rural vitalization; continuously upgrading reading services; promoting on-campus education, specialized research, and training on human rights as well as public understanding of human rights. The action plan also sets the tasks of establishing three more national human rights education and training bases and launching three new national research bases for human rights.

China's human rights action plan has set a new and good example globally. Although more than 60 countries around the world have formulated national human rights action plans, only China, Indonesia, and Mexico have made such action plans for four consecutive terms. Countries such as the U.S., Canada, France, Germany, and Japan haven't formulated any national action plan on human rights yet. I hereby call on countries that engage in loud, empty talks on human rights to formulate their own national action plans based on international standards and make solid efforts to protect the human rights of their own people.

Looking forward, we believe that, with the efforts of the over 40 member parties of the action plan's joint meeting mechanism, the implementation work of all local governments, and the joint efforts of all sectors of society, the Human Rights Action Plan of China (2021-2025) will achieve the goal of "promoting comprehensive development of the human rights cause" and will become a highlight in China's new journey toward fully building a modern socialist country. Thank you.

Xing Huina:

Thank you, Mr. Li Xiaojun. Next, I'll give the floor to Ms. Li Xiaomei.

Li Xiaomei:

Friends from the media, good afternoon. It is a great honor to participate in this briefing on behalf of the Ministry of Foreign Affairs. 

Based on the newly issued human rights action plan, in the next five years, China will open a new chapter in international exchanges and cooperation on the human rights cause.

First, China will earnestly fulfill its international human rights obligations. China attaches great importance to the role international human rights instruments play in promoting and protecting human rights. China incorporates the principle of universality of human rights into its national conditions, continuously promotes economic and social development, improves the people's wellbeing, promotes social equity and justice, and strengthens legal protection for human rights. As the world's biggest developing country, the development of China's human rights cause itself is already the country's biggest contribution to the international human rights cause. China is willing to share its practices on human rights with the world. It will submit its performance reports concerning human rights treaties in a timely manner, participate in the relevant review process, join in constructive dialogue with human rights treaty bodies, and adopt and implement suggestions that are reasonable and feasible in the Chinese context.

Second, China will engage substantially in the work of the United Nations (UN) human rights bodies. China plans to campaign for 2024-2026 membership of the UN Human Rights Council (UNHRC). It advocates that UN human rights bodies uphold the principle of being impartial, objective, and non-selective, promote all kinds of human rights in an equal and systematic manner, explicitly oppose the politicalization of human rights issues and double standards, and continue to encourage the promotion of human rights through peace, development, cooperation, and equity. China will earnestly implement the proposals it accepted during the UNHRC's third round Universal Periodic Review for China and participate actively in the fourth round review. China will continue to recommend Chinese experts to apply for the posts of the Special Procedures of the UNHRC and advance efforts to address the imbalance in the geographical representation of experts of the special procedures.

Third, China will carry out constructive dialogue and cooperation in human rights. China is committed to engaging in human rights dialogue and consultations and promoting international human rights exchanges and cooperation on the basis of mutual respect, openness, inclusiveness, communication, and mutual learning. China will continue to host international and regional human rights forums and symposiums to enhance mutual understanding, exchanges, and mutual learning among different parties on the issue. China will also continue to cooperate with the UN's human rights mechanisms and encourage them to fulfill their duty in an objective and fair manner and to pay attention to the concerns of developing countries.

Fourth, China will participate substantially in global human rights governance. Promoting and protecting human rights is a shared cause of all countries. In this sense, global human rights governance requires the joint consultation of all countries, and the results of human rights development should be shared by all people around the world. China will continue to encourage all parties to adhere to the purposes and principles of the UN Charter and respect the rights of a country to independently choose its human rights development path that suits its national realities. China will continue to actively engage in creating rules and setting international agendas in the fields of human rights to advocate a fair, just, reasonable, and effective international human rights system.

Standing at the historic confluence period of the "Two Centenary Goals" and facing the world's profound changes unseen in a century, China will work to promote the comprehensive development of human rights, contribute its ideas and solutions to the human rights development around the world, advocate the shared human values of peace, development, fairness, justice, democracy and freedom, and promote the building of a community with a shared future for mankind, at a new historical point. Thank you.

Xing Huina:

Thank you, Ms. Li. Next, I'll give the floor to Mr. Bie Tao.

Bie Tao:

Friends from the press, good afternoon. The Human Rights Action Plan of China (2021-2025) is the fourth successive edition of its kind issued by the Chinese government. Environmental rights have been included in all four editions of the plan since the first edition was issued 12 years ago. Mr. Li Xiaojun just mentioned that the protection of environmental rights is an important feature of China's human rights protection.  

As for the relationship between human rights protection and environmental rights and interests, I would like to give some of my basic personal judgments for your reference from the perspective of environmental protection. First, the comprehensive protection of human rights includes the protection of the public's environmental rights. Second, effective protection of environmental rights is impossible without sound and law-based environmental governance. Third, China's legislation, administration and judicature have always attached importance to the protection of environmental rights and interests. Fourth, since the 18th CPC National Congress, many laws have been revised. We revised the Environmental Protection Law in 2014, and we have modified the Law on Atmospheric Pollution Prevention and Control, the Law on Water Pollution Prevention and Control and the Law on Solid Waste Pollution Prevention and Control in recent years. We have also revised the Law on Soil Pollution Prevention and Control, with the revision of the laws on noise pollution prevention and control and on nuclear safety, the formulation and revision of other relevant laws underway. It's fair to say that nowadays, China's legislation, law enforcement and judicial system have provided just, fair and effective protection. Areas of protection include: substantive environmental rights, like fresh air, clean drinking water and unpolluted soil; procedural environmental rights, such as the right to know, to participate and to supervise regarding the environment; preventive environmental rights, including environmental impact assessments for plans and public participation in hearings; remedial environmental rights, such as consultation, litigation and other procedural rules; the environmental rights of individual citizens concerning their personal interests; and the collective environmental rights of NGOs and other environmental social organizations.

Just now, Mr. Li Xiaojun mentioned the word "confidence", with which I quite agree. Today, we can say with confidence and pride that after nearly 50 years of efforts since the Declaration of the United Nations Conference on the Human Environment was adopted in 1972, China no longer lags behind any other countries in terms of the legal protection of environmental rights.

Regarding the legal safeguards for environmental human rights, China has effectively safeguarded the public's environmental rights by taking a series of actions including tackling climate change, controlling ecological deterioration and preventing and controlling environmental pollution. After 12 years of continuous endeavors, national human rights action plans have yielded remarkable results in environmental rights protection. This mainly includes improving the law-based governance on the ecological environment, ensuing the public's environmental rights and interests, solving livelihood-related environmental issues, enhancing the ecological environment quality, and effectively safeguarding public health. All of these have notably increased the public's sense of gain, happiness and security in the ecological environment, which constitutes a highlight in China's human rights protection.  

The new five-year Human Rights Action Plan (2021-2025) includes "environmental rights" as a separate chapter, right after the chapters of economic, social and cultural rights, as well as civil and political rights. At the same time, the regulations on environmental rights in the new action plan have also been expanded and enriched. We have reviewed previous action plans and found that the "one aspect, seven tasks" of environmental rights set out in the first edition in 2009 have been expanded to "six aspects, 18 tasks" in the latest fourth edition. You are welcome to glance over them. The contents of the new action plan are richer with more systematic and comprehensive deployments, and they play a pioneering and guiding role, which I think is of great practical significance.  

The new Human Rights Action Plan has not only modified its structure and chapters, but also updated its contents. The action plan demonstrates that the CPC Central Committee with Comrade Xi Jinping at its core holds that ecological conservation is of fundamental importance to the sustainable development of the Chinese nation, adheres to the people-centered development philosophy, vigorously promotes innovation in theory, practice and system involving ecological progress, and forms Xi Jinping Thought on Ecological Civilization. This thought serves as the fundamental basis for us to safeguard the public's environmental rights and interests.  

Now we are all studying Xi Jinping Thought on Ecological Civilization, especially those of us in environmental protection departments. I have learned that ecological protection work in the new era is closely related to environmental rights and interests, which, in my opinion, is mainly reflected in the following four aspects.

First, people's livelihoods. We say that the environment is the basis of people's livelihoods. Developing the economy is for people's well-being, and so is protecting the environment. We should not only create more material wealth to meet people's ever-growing needs for a better life, but also provide more high-quality ecological products to meet people's ever-growing needs for a beautiful ecological environment. In particular, we are exploring new methods for the environment and health to enhance each other and address prominent environmental problems that undermine people's health. The revised Environmental Protection Law makes protecting public health its purpose. Apart from the general principles, the law stipulates in its specific rules that the country should establish and improve the monitoring, investigation and risk assessment mechanism of the environment and health, carry out studies about the impacts of environmental quality on health, and prevent and control various environment-related diseases. The country has also formulated, published and adjusted the lists of toxic and harmful pollutants according to the latest risk assessments of their impacts to the environment and human health. 

Second, fairness. A good ecological environment is the fairest public product and provides inclusive wellbeing for the people. Therefore, we need to coordinate eco-environmental protection in rural and urban areas. We will take further actions to tackle atmospheric pollution in cities, such as PM2.5 intensity that has concerned many people. We will pay attention to resolving water pollution in river basins and regions, including odor pollution and black and fetid water bodies. We will also speed up to tackle pollution from non-point source and soil pollution that has affected people's living environment in rural areas. By doing these, equal access to basic public environmental services between urban and rural areas will be promoted, which embodies fairness in environment.

Third, openness or participation. Ecological civilization is a cause that all people participate in, work together for and benefit from. It requires us to turn the "Beautiful China" campaign into a voluntary action by all. Everyone should be a protector, builder, and beneficiary of the eco-environment, rather than a mere spectator, outsider, and critic. We will carry out public green actions and encourage the entire society to make more contributions to eco-environmental protection. This year, Chinese environmental protection authorities launched an activity with the theme of "Beautiful China: I'm a doer." And I'd like to ask you to follow its progress. China's Environmental Protection Law includes public participation as one of the basic principles in the general provisions. Its Chapter Five - Environmental Information Disclosure and Public Participation - stipulates the basic government responsibility on environmental protection, including disclosing environmental information to the public in a unified and scheduled manner. Every year, the State Council releases data from all government departments and compiles a communique on the environmental situation, as do all local governments. Environmental protection authorities and other relevant departments need to release public environmental information collected when they perform their functions, while enterprises are asked to disclose their environmental information affecting public rights, interests, and health. As economic entities, enterprises may discharge pollutants during operational activities, which may affect the public environment or cause hazards to public health. On these occasions, they have an obligation to disclose the type, quantity, concentration, and disposition of the pollutants. In particular, some listed companies, bond issuers, heavy-polluting units listed on the key supervision list, and enterprises punished for breaking the law must disclose their environmental information, including rectification plans. The current environmental protection inspection launched by the central government has fully disclosed environmental violations in typical cases and urged relevant polluters to make rectification plans to guarantee people's right to be informed, and to participate in and supervise environmental protection.

Construction units are also asked to disclose environmental information and solicit public opinions if the construction projects affect public health or the environment. The public has the right to participate in the supervision and decision-making of relevant projects in accordance with the law, as well as apply for formal hearings and investigations in some major projects according to the law. We encourage the public to report environmental violations and promise to protect their information, safeguard their legal rights and interests, and severely punish the retaliation against informants. One thing to note particularly is that besides the mechanisms ensuring the public to know, participate, and supervise, we are also exploring a public interest litigation system. The system allows environmental protection organizations, even if not directly victimized, to file public welfare lawsuits against illegal enterprises in people's courts, and request state organs to order law violators to stop encroachment and repair the affected eco-environment.

Fourth, global mindset, which I won't give a further explanation on.

Since the 18th CPC National Congress, the Ministry of Ecology and Environment has implemented General Secretary Xi Jinping's instructions such as "protecting the environment requires the best institutional arrangements and the strictest rule of law" and "tackling pollution according to law," and maintained a people-centered approach to protect the environment. First, we have achieved prominent progress on high-quality legislation of eco-environmental protection, which consolidated the legal guarantee of public environmental rights and interests. Second, we have improved the ecological and environmental standard system. Third, we have deepened the reform of the compensation system for ecological and environmental damage. It's natural for enterprises to pursue interests when doing business, but they shall be liable for repair and compensation in accordance with laws if they damage the public environment, natural resources, and eco-environment or harm the interests of others.

During the 14th Five-Year Plan period (2021-2025), China's ecological and environmental system will continue to earnestly study and implement Xi Jinping Thought on Ecological Civilization and Xi Jinping Thought on the Rule of Law. We will meet the overall requirements of reducing pollution and carbon emissions, accelerate green and low-carbon development, further improve ecological and environmental quality, effectively protect public health, and safeguard the public's environmental rights and interests, thus contributing to building a beautiful China where humanity and nature harmoniously co-exist. Thank you.

Xing Huina:

Thank you, Mr. Bie. Now, let's give the floor to Mr. Chang Jian.

Chang Jian:

Good afternoon, everyone. This action plan is the fourth of its kind and is characterized by the combination of comprehensiveness and emphasis, inheritance and innovation, and consolidation and improvement. Based on my own research, I will briefly analyze the highlights of this action plan on the aspects of civil rights, political rights, the rights of particular groups, and human rights education and research.

On civil rights, the action plan stresses improving guarantees for the right to life in emergencies, implementing the principle of injuncting any (imminent) infringement of the right to dignity, punishing "soft violence" as a crime, improving the legal system protecting personal information, and facilitating the participation of migrant populations in elections.

On political rights, the action plan stresses developing whole-process people's democracy, expanding the space for citizens' independent participation and free development, and creating a more solid democratic and legal foundation for achieving the free, well-rounded and common development of all individuals.

On the rights of particular groups, the action plan stresses reinforcing the equal protection of their rights and interests, providing them with extra assistance, and introducing a mechanism to protect their rights in both their everyday work and on special occasions. It also states that for behaviors undermining the legitimate rights and interests of a number of unspecified women, the prosecuting bodies can make procuratorial suggestions or initiate public interest lawsuits; corporal punishment in any form is not allowed against minors, and efforts should be made to prevent and stop cyberbullying and school bullying; and care should be provided for incapacitated elderly and people with dementia at an advanced age, elderly-friendly homes should be built, intelligent services should be provided for the elderly, and work should be done to ensure all have an equal share in the fruits of development.

According to the plan, China will conduct extensive research, education and training in human rights, and build awareness in this field, and also create a social atmosphere of respecting and protecting human rights. The plan states that China will set up training centers for human rights teachers in normal universities on a trial basis, and carry out pilot programs to develop national human rights education and training bases in international education centers for human rights. China will support the establishment of national human rights institutions within the systems of social science academies and Party schools (academies of governance), explore methods to select outstanding agencies for training civil servants in human rights, and select model enterprises in human rights training. Thank you for your attention.

Xing Huina:

Thank you, Mr. Chang. As the four speakers have finished their introductions, the floor is now open for questions. Please identify your media outlet before asking your question.

China Central Television:

Are there any specific goals or plans for consolidating the fruits of poverty alleviation and achieving common prosperity? Thank you.

Li Xiaojun:

Consolidating the fruits of poverty alleviation, implementing the rural vitalization strategy and carrying out rural vitalization construction are the prerequisites for achieving common prosperity for all. In particular, China will further support the development of formerly impoverished areas by ensuring access to affordable and safe housing, clean water, safe and secure supplies of food, and convenient transport.

In terms of employment, we will secure stable jobs for people raised out of poverty. For example, subsidized jobs in rural areas will be put to better use through improved coordination. On education, the responsibility system will be improved to prevent school dropouts and increase the completion rate of compulsory education. Conditions of small village schools and boarding schools in towns and townships will also be improved. The policy of financial aid for students from impoverished families and the nutrition improvement plan for rural students receiving compulsory education will continue. On medical care, the Healthy China initiative will be fully implemented to provide a complete range of health services to people throughout their lives.

We will improve care for the elderly and children. For people facing financial difficulties, such as those living on subsistence allowances, those who are severely impoverished, those who fell into poverty and those who have serious disabilities, the government will cover part or all of their premiums in the basic pension scheme. The government will also provide better care for orphans and abandoned children, as well as care and rehabilitation services for people with disabilities.

China will improve financial aid and support for severely impoverished rural residents through higher-quality relief services.

Moreover, to meet the demands of farmers and herdsmen for quality of life and cultural activities, we will improve the network of cultural infrastructure in rural areas, and build more comprehensive cultural stations in townships, as well as comprehensive cultural service centers in rural communities. Thank you.

People's Daily:

As China's economy has moved to a stage of high-quality development, how will the action plan meet people's new pursuits for human rights.

Li Xiaojun:

This is a broad question. A happy life is the most important human right for the people. At its fifth plenary session, the 19th Central Committee of the Communist Party of China (CPC) stressed promoting the all-round development of the cause of human rights, which aims to ensure that all Chinese people can live a good life and to promote the free, well-rounded and common development of all individuals. Therefore, the action plan aims to resolve the pressing difficulties and problems which are of the greatest concern to the people, and ensure that they can enjoy better education, more stable jobs, more satisfactory incomes, more reliable social security, higher-levels of medical care, more comfortable living conditions, more practical democratic and political rights, as well as a better ecological environment. It is aimed at achieving common prosperity and meeting people's aspirations for a better life. The action plan guarantees the human rights of all people and provides special protection for particular groups such as ethnic minorities, women, children, people with disabilities, and the elderly. China not only engages in human rights affairs domestically, but is deeply involved in international human rights affairs, contributing to a better global human rights governance system that is fair, equitable, reasonable and inclusive, and a global community with a shared future. Thank you.

Red Star News:

The action plan dedicates a special section to environmental rights with rich content. According to the plan, China will improve the eco-environmental damage compensation system. Has there been any progress in this respect? Are there any problems standing in the way? And what are the plans for the future? Thank you.

Bie Tao:

I will answer this question. I have mentioned several judgments during the introduction. I would like to reiterate one of them: the comprehensive improvement on human rights requires the comprehensive improvement on environmental rights as well. For further expounding, any damage, infringement, or sabotage to the environment should be effectively restored, managed, and claimed for compensation in accordance with the law. A strict system of accountability must be well established. As such, your question coincidently involves aspects of environmental rights. 

As part of the efforts to address the issues of damage to both environment and public interests, the CPC Central Committee has launched the eco-environmental damage compensation reform. This reform started its trial implementation in seven cities at the beginning of 2016. After two years of practice, the pilot reform was expanded nationwide in 2018, including 31 provinces, autonomous regions, municipalities, and the Xinjiang Production and Construction Corps. The reform was officially implemented in 2020. I would like to take this opportunity to introduce the progress we have made since the trial implementation of the reform.

Over the past five years, all localities and departments have earnestly implemented the arrangement of the eco-environmental damage compensation reform made by the CPC Central Committee. Through our tireless efforts, an eco-environmental damage compensation institutional framework featuring clear lines of responsibility, smooth flow of procedures, standard technologies,  strong guarantees, compensation in place, and effective restoration has taken shape, achieving noticeable progress in promoting national and local legislative work, standardizing the rules of litigation, reinforcing technological and financial supports, carrying out cases in practice, and restoring the damaged ecological environment. We have completely achieved the phased reform goal, which manifested in the following four aspects.

First, we have made noticeable progress in the construction of legal systems. The Civil Code, which was adopted last year, has set up a special provision for punitive compensation for eco-environmental damage, including substantive and procedural rules. It has made it a clear requirement that state organs, including administrative organs and procuratorial organs or any legitimate social organizations, also known as environmental NGOs, are entitled to lodge claims for eco-environmental damages through negotiations or litigation. Adopting the results of the pilot reform into basic national law represented by the Civil Code is a substantive move to establish the legal status of an eco-environmental damage compensation system. At the same time, a series of special laws, such as the Water Pollution Prevention and Control Law, Soil Pollution Prevention and Control Law, and Law on the Prevention and Control of Environmental Pollution by Solid Wastes have made special provisions for eco-environmental damage compensation. Noticeably, the Yangtze River Protection Law, which was adopted last year, has introduced the eco-environmental damage compensation system as well. Other relevant laws on resources protection represented by the Forest Law have adopted this system as well. Moreover, many local legislatures have made provisions for eco-environmental damage compensation. As far as we know, a total of 19 provinces have rolled out local laws and regulations on eco-environmental damage compensation.

Secondly, the management system has been increasingly refined. The Ministry of Ecology and Environment, together with public security organs, procuratorial organs, people's courts, departments of justice, natural resources, agriculture, forestry and water resources, jointly issued the opinions on promoting the eco-environmental damage compensation system reform, which has helped to provide explicit guidance on the specific issues exposed during the pilot reform, including clue screening, compensation negotiation, and judicial confirmation of consultative agreement. China's Supreme People's Court has released provisions on handling cases of eco-environmental damage compensation, consultative agreement, and judicial confirmation. Working collectively with nine other departments, the Ministry of Finance has issued measures on management of compensation funds for ecological and environmental damage through consultation and litigation in a bid to standardize rules on the compensation payment, use, and supervision. At the same time, the Ministry of Ecology and Environment has conducted investigation and supervision over the assessment and consultative agreement of eco-environmental damages in major cases with nationwide impact, such as the Tengger Desert pollution case, the Muli coalfield pollution case, and so on. We have selected several representative cases and provided references for the rest of the country in a bid to promote the reforms across China.

Third, the technological system has been increasingly standardized. The eco-environmental damage compensation is highly technical, with quantitative assessment as its foundation. Only when the damages can be well quantified can we have access to negotiate, lodge complaints, demand restoration, or claim for compensation. Therefore, the Ministry of Ecology and Environment has rolled out an array of technical guidance covering nine aspects of recommended method of damage assessment, general principle, damage survey, and so on, providing compelling technical support for the pilot reform and the national trial implementation. Last December, under the joint efforts of the State Administration for Market Regulation and the Ministry of Ecology and Environment, a total of six national standards have been released, including the general principle of eco-environmental damage assessment, damage survey, virtual treatment cost laws on soil and groundwater, surface water and sediments, and water pollution and air pollution. A technical standard system for eco-environmental damage assessment has taken initial shape, basically covering all key steps and basic types of environmental factors involved in eco-environmental damage assessments.

Fourth, the reform practice of various regions has been vigorously promoted. All provinces, autonomous regions, municipalities and the Xinjiang Production and Construction Corps (XPCC) have formulated implementation plans at the provincial level. More than 380 prefecture-level cities across the country, including districts and counties of municipalities directly under the central government, have all issued implementation plans, confirming local reform goals, advancement paths, and the division of labor among departments. Local governments have also formulated 327 supporting documents based on specific issues such as consultation, investigation, appraisal and evaluation, and the management of compensation funds. All localities and departments are actively handling eco-environmental damage compensation cases, and organizing the timely restoration of damaged ecological environments. According to statistics, as of the end of last year, more than 4,300 cases of eco-environmental damage compensation were handled nationwide, involving more than 7.8 billion yuan. A large number of damaged soils, forest land, basic farmland, surface water, groundwater and solid waste have so far been treated, restored and cleaned up.

At present, the central government is also conducting inspections. Our analysis has concluded that there exist several basic problems. First, the progress of reform is uneven across various regions. Some provinces handle hundreds or even thousands of cases, while some provincial-level administrations only handle several or tens of cases. The difference is very large and too unbalanced. Second, the technical method system has yet to be improved. Our department has issued six standards, but they have not yet covered all aspects. Third, from the perspective of procedural law, the relevant legal provisions and management rules are still imperfect.

Next, we will further summarize the progress, problems and cause analysis of the pilot in accordance with the unified deployment of the central government on the reform of eco-environmental damage compensation, and propose solutions to deepen the reform of eco-environmental damage compensation. At the same time, we will actively work with the relevant departments of the central and state organs to focus on four areas of work. First, we will study and draft a unified normative document on eco-environmental damage compensation. The current basis of this work is still based on the reform plan, and the transition to normal implementation should require legal and regulatory documents. We must promote this reform onto the track of rule of law. Second, we will continue to increase the selection, evaluation, release, and recommendation guidance for major typical cases. Third, we will strengthen the basic research of eco-environmental damage identification and assessment, and unify technical specifications. Fourth, we will further strengthen coordination and cooperation among departments, form a joint effort among the departments, and promote the implementation of the reform of eco-environmental damage compensation for practical results. Thank you.

China Daily:

At the recently concluded Tokyo Paralympic Games, Chinese disabled athletes achieved excellent results, and people across the whole country are very proud of them. Can you please tell us about the new measures in the action plan regarding the protection of the rights and interests of people with disabilities? Thank you.

Li Xiaojun:

Let me answer this question. In 2019, the State Council Information Office published a white paper on the protection of the rights and interests of the disabled in China. This paper was called "Equality, Participation and Sharing: 70 Years of Protecting the Rights and Interests of Persons with Disabilities in the PRC." We compiled and wrote this white paper with deep feelings and respect for all the 85 million disabled people in China. We have participated in the writings of some white papers, but writing with such respect and having invested so much in emotions for the disabled, it was still a very prominent example.

People with disabilities are a valuable asset to our country, and General Secretary Xi Jinping has given special care and love to them. In 2014, he sent a congratulatory letter to the 30th anniversary of the founding of the China Foundation for Disabled Persons, proposing that the disabled are a group with special difficulties and need to be particularly cared for and paid attention to. In 2016, during his inspection tour in Tangshan city, Hebei province, he proposed the goal that not a single disabled person should be left behind while building a moderately prosperous society in all respects by 2020. In 2017, he proposed that China should further develop the cause of the disabled and promote the comprehensive development and common prosperity of the disabled. As China has built a moderately prosperous society in all respects, many of these important instructions and requirements have been implemented.

In recent years, China's work for people with disabilities has made great progress, and the value of causes that can have equal participation and sharing by people with disabilities has continued to increase. Chinese disabled athletes have achieved impressive results in the Tokyo's Summer Paralympics, and their tenacious fighting spirit and the spirit of winning glory for the country have inspired all of us. This also vividly shows that China has made important achievements in the protection of the human rights of people with disabilities. This new edition of the action plan puts forward specific goals and tasks in terms of equal participation of disabled persons, welfare guarantees, rehabilitation services, education, employment, barrier-free construction, and the production of assistive devices. For example, the number of newly employed disabled persons in cities and towns shall reach 500,000, rehabilitation universities shall be built, and 100 welfare facilities specifically for mental health shall be built. Thank you.

Hong Kong Economic Herald:

We have noticed that the action plan sets out the principle of "smart advancement." What measures has China taken in terms of personal information protection? Thank you.

Chang Jian:

I will answer this question. Indeed, in this action plan, specific responses have been made to the challenges of information rights, especially the protection of human rights in the digital age. We know that human beings are entering the digital age. Digital life has become a basic way and an important part of our life. A series of human rights protection needs are generated in the context of digitalization, including the equal use of digital technology without discrimination, freedom from various violations caused by the use of digital technology, freedom from the manipulation of digital technology on people, and the independent control of personal digital information and property.

On one hand, in view of the new demand for human rights protection in the digital age, the action plan puts forward a new principle of "smart advancement," that is, "tapping the potential of digital technology" to advance human rights progress. As we know, the previous action plans put forward five principles, namely, pushing forward the work in accordance with the law, in a pragmatic, coordinated and balanced way, and with joint efforts. This action plan adds another principle: smart advancement. With this principle, we intend to make full use of digital technology and expand the free and all-round development of every person. The plan makes clear specific measures and tasks, including smart medical care, smart services for the elderly, smart cities and digital villages, smart library systems, barrier free facility digitization, as well as intelligent upgrading, smart litigation services, internet government convenience services, online deliberation of state affairs, and the use of big data, cloud computing, artificial intelligence and other technical means to comprehensively collect and respond to people's opinions and suggestions in a timely manner.

On the other hand, in view of the new human rights issues arising in the digital era, the action plan includes a special section on the protection of personal information rights and interests, requiring the improvement of the legal system of personal information protection, the in-depth implementation of the supervision, law enforcement and publicity of personal information protection, and the safeguarding of cyber and data security. We will carry out in-depth supervision and enforce the law regarding personal information, and require that effective measures be taken to bridge the urban-rural digital divide, prevent the digital divide in online education, formulate employment security policies for online jobs, and crack down on a whole scope of crimes such as cyber bullying and stealing network data.

The National People's Congress passed the Data Security Law on June 10 this year and the Personal Information Protection Law of the People's Republic of China in August. Both clearly stipulate that no organization or individual is allowed to illegally collect, use, process or transmit other people's personal information, or illegally buy, sell, provide or disclose other people's personal information. China will also formulate and issue supporting laws, regulations, standards and judicial interpretations for the protection of personal information, and continue to improve the legal system for the protection of personal information. Thank you.

Phoenix TV:

How does China participate in global human rights cooperation? What new measures will be taken next to participate in global human rights cooperation? Thank you.

Li Xiaomei:

Thank you for your question. You may notice that in this issue of the action plan, there has been a change in the title of the section concerning international cooperation. As for the last issue of the action plan, the section was titled "Fulfillment of Obligations to Human Rights Conventions, and International Exchanges and Cooperation in the Field of Human Rights." We changed it to "Participating in Global Human Rights Governance" in the new issue. We put forward China's new goals and commitments in promoting domestic and international human rights progress from four aspects, namely fulfilling obligations to international human rights conventions, engaging substantially in the work of UN human rights bodies, joining in constructive dialogue and cooperation on human rights, and contributing to the international cause of human rights.

Here I want to stress that running our own affairs well is the best way for China to participate in global human rights governance. China has built a moderately prosperous society in all respects and historically solved the problem of absolute poverty. This is the largest human rights project and the best practice for human rights progress. It not only writes a new chapter in China's human rights progress, but is also an important milestone in the development of the world's human rights cause. While enriching and developing the diversity of human rights, the country contributed Chinese wisdom and Chinese solutions to solving human problems.

There are two things that China can be particularly proud of this year. One is that we achieved the poverty reduction targets in the 2030 Agenda for Sustainable Development 10 years ahead of schedule. The other is that we protected human rights in the process of fighting the epidemic from last year to this year, setting a good example for the world. These two points alone not only reflect the protection of human rights by the Party and the government, but also prove to the world that China has made huge efforts and achieved great success in implementing international human rights obligations and promoting and protecting the human rights of its people in combination with its own national conditions.

Against the backdrop of the combined forces of profound changes on a scale unseen in a century and the raging Covid-19 pandemic, the global human rights situation is facing severe challenges: the human rights deficit continues to expand, and the epidemic has impacted the human rights cause around the world, especially the right to health and development, which have been severely damaged. In this context, the voices for upholding multilateralism and improving global human rights governance have grown stronger. Developing countries have expected China to play a leading role. As I mentioned in the introduction, China has participated in four levels of human rights promotion, which can be said to be all-dimensional. In the process of participation, China's human rights concept has also been continuously accepted by the international community. The UN Human Rights Council opened its 48th regular session yesterday. In the UN Human Rights Council and the Third Committee of the UN General Assembly, China has put forward a series of propositions and proposals on human rights, which have received extensive support from developing countries and friendly countries.

In the next step, it is China's mission to promote the healthy development of the international human rights cause. The peace, development, fairness, justice, democracy, and freedom, are the common values of all mankind. Guided by Xi Jinping Thought on Diplomacy, we will continue to strengthen exchange and cooperation on human rights with all parties, jointly promote the healthy development of international human rights cause, and build a community with a shared future for mankind. Thank you.

CRI:

We have seen that since the 18th National Congress of the Communist Party of China (CPC), China has made positive progress in protecting citizens' environmental rights and promoting ecological environmental legislation. What are the plans for the next step? Thanks.

Bie Tao:

Thank you for your concern about the environmental rule of law, especially environmental legislation. Protecting citizens' environmental rights has always been one of the legislative goals and purposes of the highest organ of state power. Since the 18th CPC National Congress, the Ministry of Ecology and Environment has earnestly studied and implemented Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Xi Jinping Thought on Ecological Civilization, and Xi Jinping Thought on the Rule of Law. In accordance with General Secretary Xi Jinping's important instructions on ‘preventing pollution in accordance with the laws,' we have made every effort to promote the establishment of an eco-environmental legal system. The legislative work on the eco-environment has been more vigorous than ever before, and richer fruits have been yielded. Thirteen laws have been formulated and revised, including the environmental protection law, the law on the prevention and control of atmospheric pollution, the law on soil pollution prevention and control, the law on nuclear safety, the law on prevention and control of environmental pollution by solid waste, and the Yangtze river conservation law, etc. Thirteen administrative regulations have also been formulated and revised, including the regulation on urban drainage and sewage treatment, regulations on the prevention and control of pollution caused by large-scale breeding of livestock and poultry, and the regulation on administration of pollutant discharge permits. Until now, ecological and environmental authorities have acted as the main law enforcement departments in 15 laws, accounting for about one-twentieth of the total number of laws currently in force. In addition, there have been more than 20 laws on resource development and utilization, more than 30 administrative laws and regulations on the ecological environment, and more than 40 intra-Party regulations closely related to ecological environment protection. Overall, the legal framework for ecological environment protection has basically taken shape, which provides laws to abide by in all areas of ecological and environmental protection.

Protecting citizens' environmental rights has always been an important part of China's environmental legislation. The Environmental Impact Assessment Law enacted in 2002 has clearly stated that if special plans may cause adverse environmental impacts and directly involve the public's environmental rights, demonstration meetings and hearings shall be held or other forms taken to solicit the opinions from related units, experts, and the public on the draft report on environmental impacts. A special chapter on 'information disclosure and public participation' was added to the revised Environmental Protection Law in 2014 which is clear that citizens, legal persons, and other organizations, have the right to obtain environmental information, participate in, and supervise environmental protection in accordance with the law.

Overall, in recent years, the environmental protection laws and regulations that we formulated and revised have contributed greatly to improving the supervision system, strengthening government responsibilities, imposing higher penalties for violations, and promoting public participation. Hence, some prominent problems have been resolved. Shortcomings in the system of environmental protection laws, however, remain a salient problem, such as gaps in some legislation related to fighting climate change, environment monitoring, and the management of dangerous chemicals. Moreover, there are overlapping supervisory mechanisms, and more efforts are required to punish violations, improve the legal system to restrain government behaviors, and enhance the legal system for the public supervision of environmental protection. Establishing a framework of environmental laws and regulations that meets the needs of modernizing China's system and capacity for governance is an arduous task.

During the 14th Five-Year Plan period (2021-2025), the Ministry of Ecology and Environment will continue to thoroughly implement Xi Jinping Thought on Ecological Civilization and Xi Jinping Thought on the Rule of Law, and further enhance the legislative work on the eco-environment, so as to provide more comprehensive and effective legal protection for the country in its battle against pollution. We will focus on the following aspects:

First, we will strengthen legislature in key areas to integrate systems and fill gaps. China will improve its eco-environmental legal system in line with the goal of building a beautiful China. It will formulate and revise laws and regulations on Yellow River protection, noise pollution prevention and control, marine environmental protection, environmental impact evaluation, fighting climate change, and eco-environmental monitoring. We will push forward the construction of China's legal system in the area of ecological reform, and enhance legislative work in areas like eco-environmental damage compensation, nature reserves, ecological red lines and an environmental protection credit rating system, to ensure major reforms are implemented effectively and in accordance with the law.

Second, we will push forward research and discussions on the codification of environmental laws. According to its annual legislative agenda for 2021, China's top legislature will explore the possibility of initiating the codification of environmental laws, which meets the requirements of fully implementing Xi Jinping Thought on Ecological Civilization and Xi Jinping Thought on the Rule of Law and supports the top-level design to improve environmental protection. The Ministry of Ecology and Environment will work with legislative bodies in fully promoting research and discussions on the codification of environmental laws, strengthening connections and coordination, and reducing overlap among different laws and regulations, so as to establish an eco-environmental protection law system featuring strict prevention at the sources of pollution, strict regulation of operations, and accountability for those responsible, and to modernize China's environmental protection system and capacity for governance.

Third, we will learn from the successful experience of legislation for protecting the eco-environment and step up efforts in four aspects. We will enforce the best institutional arrangements and implement the strictest rule of law to protect the eco-environment. We will establish a supervision system on eco-environment by taking a fact-based approach, abiding by the objective laws and based on national conditions. We will stick to the new development philosophy, so as to properly handle relations between eco-environmental protection and socioeconomic development, and win the fight against pollution. We will focus on improving the environment, and establish a legal system for improving the environment.

Fourth, we will strictly implement the instructions of General Secretary Xi Jinping on toughening punishments for ecological and environmental violations, further strengthen the punishment of illegal acts related to ecological and environmental protection, including those concerning administrative, criminal and civil liabilities. In particular, we should clearly identify the key targets for the crackdown, including the malicious act of illegally discharging pollutants, which damages the public's environmental rights and interests and threatens public health. Our theme today is human rights protection. Maliciously discharging waste disregards and damages the public's environmental rights and interests as well as public environmental health for the private gain of a small group. It is unfair, immoral, and of course illegal. From the perspective of human rights, such malicious acts harm the rights to subsistence and development, as well as health and personal rights. Therefore, malicious illegal acts are key targets of our crackdown efforts. In addition, the discharge of heavy metals, medical waste and industrial hazardous waste, which directly harms human health, soil, air and drinking water, has also been the focus of the crackdown. Furthermore, we will work with relevant departments, including the forestry and grassland departments, to strengthen the crackdown on the illegal hunting of wild animals, illegal fishing of aquatic creatures and other illegal activities, which are also key targets of the crackdown. After the Yangtze River Protection Law came into effect, the major measure of a 10-year fishing ban in key areas of the Yangtze River was taken with great determination. General Secretary Xi Jinping said that the Yangtze River had got sick. An important manifestation was that some parts had no fish left. As a result, the central authorities decided to ban fishing for 10 years. In particular, this move will involve finding other ways of making a living, proper resettlement and providing government subsidies for the hundreds of thousands of fishermen and their families who rely on the river to earn a living. In this case, both illegal fishing and illegal hunting are the key crackdown targets.

Recently, an event related to ecological and environmental protection has received widespread attention. A herd of elephants travelled hundreds, if not thousands of kilometers, to the southern part of Kunming city, the capital of Yunnan province. While attracting quite a lot attention, the wandering elephants were also effectively protected along the way. People opened up paths for them, helped them find their way, and provided food supplies along their journey. These behaviors were very heartwarming. Local governments, conservation volunteers and non-governmental organizations all played positive roles in this regard. The elephants recently returned to their natural habitat. This event has become a vivid example of China's biodiversity conservation efforts and represents an interesting side note for the 15th meeting of the Conference of the Parties to the UN Convention on Biological Diversity (COP15) which will soon kick off in Kunming. We are very proud of this achievement. These are China's legislative efforts and practices on biodiversity conservation, which will also become a focus of our work in the future. Thank you.

Xing Huina:

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

Translated and edited by Wang Yiming, Wang Qian, Zhu Bochen, Yuan Fang, Xu Xiaoxuan, Huang Shan, Lin Liyao, Chen Xia, Guo Yiming, Liu Qiang, Qin Qi, Yang Xi, Zhang Rui, Xiang Bin, Wang Wei, Yan Xiaoqing, Wang Yanfang, Ma Yujia, He Shan, Zhang Junmian, David Ball, Jay Birbeck, Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.