Read in Chinese

Speakers:

Guo Wei, deputy director of the State Council Research Office

Sun Guojun, member of the Leading Party Members Group of the State Council Research Office

Chairperson:

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

Date:

March 5, 2021

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Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this briefing held by the State Council Information Office. The fourth 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. Guo Wei, deputy director of the State Council Research Office, and Sun Guojun, a member of the Leading Party Members Group of the State Council Research Office. They will elaborate on the report and take your questions. First, we will give the floor to Mr. Guo.

Guo Wei:

Friends from the media, good morning. Earlier today, Premier Li Keqiang delivered the Report on the Work of the Government at the fourth session of the 13th National People's Congress. The report upholds Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as its guide. It fully implements the guiding principles of the 19th National Congress of the Communist Party of China (CPC); the second, third, fourth, and fifth plenary sessions of the 19th CPC Central Committee; and the annual Central Economic Work Conference in 2020. The report reviews the main work on social and economic development last year, and summarizes the achievements made during the 13th Five-Year Plan (FYP) period and the main targets and tasks for the 14th FYP period. It also puts forward the main projected targets and macro policy directions concerning this year's social and economic development and makes arrangements for the main agenda of this year.

I've read some of the responses posted on the internet on my way here. Many say that the report responds to people's concerns and reflects the expectations of all parties. Some says that after listening to the report, they feel proud of the nation's achievements, inspired by the policies of the central government, and are more confident when facing difficulties. Others say that new policies make them feel assured, and that the recent progress brings them so much hope. We participated in the drafting process of the report, and also felt very inspired when listening to Premier Li delivering the report at the Great Hall of the People today. We feel that the report is indeed practical and informed by the realities on the ground. It rallies people together and boosts our confidence.

This year is rather special as it marks the beginning of the 14th FYP, the embarkment of a new journey toward fully building a modern socialist country, and the 100th anniversary of the founding of the CPC. The drafting work of the report was very crucial, and great importance was attached to it by the CPC Central Committee and the State Council. General Secretary Xi Jinping made important instructions on the drafting of the report and chaired meetings of the Political Bureau of the CPC Central Committee and of its Standing Committee, studying and discussing the draft and putting forward specific requirements for revising. Premier Li presided over the drafting and revising of the report, and chaired executive and plenary meetings of the State Council to discuss the draft. Premier Li also presided over themed symposiums many times to directly listen to opinions and suggestions from all parties. Other leaders of the State Council also gave concrete instructions on the drafting and revisions of the report. The drafting work collected opinions and suggestions from all provinces, autonomous regions and municipalities; central departments in the Party, the government, the military, and people's organizations, as well as some central State-owned enterprises.

The report consists of three major parts. The first part briefly reviewed last year's work and achievements. The report notes that last year was an extraordinary year in the history of the People's Republic of China. We've achieved major strategic success in our response to COVID-19, and China was the world's only major economy to achieve growth. We attained a complete victory in the fight against poverty and scored decisive achievements in our efforts to build a moderately prosperous society in all respects. We owe our achievements 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, the armed forces, and the Chinese people of all ethnic groups. 

The 13th FYP concluded last year, and the 14th FYP starts this year. Acting in accordance with the Recommendations of the Central Committee of the Communist Party of China for Formulating the 14th Five-Year Plan for Economic and Social Development and Long-Range Objectives through the Year 2035, the State Council has drawn up the draft Outline for the 14th Five-Year Plan for Economic and Social Development and Long-Range Objectives through the Year 2035. The second part of the report briefly introduced the content of the draft outline and summarized the achievements made during the 13th FYP period and the main targets and tasks for the 14th FYP period.

Based on the analysis of the development in and outside China, the third part of the report made comprehensive plans and arrangements for the main tasks and policies of the government this year.

Next, Mr. Sun and I will take questions from you regarding drafting of the report. Thank you.

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Shou Xiaoli:

Thank you, Mr. Guo. The floor is open for questions. Please identify your news outlet before asking question. Thank you.

CCTV:

This year's government work report points out from the very beginning that last year was an extraordinary year in the history of the People's Republic of China. It also states that the work last year was truly challenging. Given the achievements of last year, how do we best understand and define "extraordinary" and "challenging?" Thank you.

Guo Wei:

I think it is quite accurate to describe last year as extraordinary.

Last year, our tasks were extraordinary. We needed to achieve decisive success in eliminating absolute poverty and secure a full victory in building a moderately prosperous society in all respects.

Last year, the difficulties and challenges we faced were exceptional. We encountered combined adverse and severe impacts rarely seen in a century. First, the sudden outbreak of the once-in-a-century COVID-19 epidemic posed a serious threat to people's health and brought unprecedented difficulties to economic and social development as well as all aspects of work. In the first quarter of last year, China's economy registered a negative growth rate of 6.8%, which hasn't been seen since the reform and opening up. Second, the world economy found itself deep in recession and for the first time in history, the economies of all regions were hit hard simultaneously. The global economy suffered the worst recession since the Great Depression in the 1930s, which has directly affected the stability of foreign trade and the security of the industrial and supply chains in China. Third, the international landscape was complex and grave with many uncertainties. Economic globalization encountered headwinds and the impacts of unilateralism and protectionism were on the rise. In addition, some areas of our country suffered severe floods and typhoons.

Last year, the achievements in development that we secured were remarkable. Facing the severe and complex situation, the Chinese people of all ethnic groups, under the strong leadership of the Central Committee of the Communist Party of China with Comrade Xi Jinping at its core, responded with tremendous tenacity and forged ahead with great resolve. We achieved major strategic success in the fight against COVID-19 and fully protected the health and safety of the people, creating fundamental guarantees and prerequisites for economic and social development. We took the lead in resuming work and production and were the first to achieve positive economic growth. At the same time, reforms in key areas and at key points were deepened, breakthroughs in opening up were made, people's livelihoods were effectively ensured, and 11.86 million new urban jobs were created. Society was harmonious and stable on the whole.

Last year, the goals we fulfilled were extraordinary in the historical development of the People's Republic of China. We attained a complete victory in the fight against poverty. All remaining poor rural residents were lifted from poverty, as were all of China's remaining poor counties, accomplishing the daunting task of eliminating absolute poverty that has existed in China for thousands of years. Our gross domestic product (GDP) exceeded the 100-trillion-yuan threshold, with the economic strength, composite national strength, and people's living standards reaching new levels. We made great progress in scientific and technological innovation. Our Chang'e-5 spacecraft successfully landed on the near side of the moon and brought back lunar samples. The new deep-sea manned submersible Fendouzhe (Striver) completed its 10,000-meter sea trials. Last year was a landmark year in many respects in the history of the People's Republic of China.

Last year, the efforts made by the Chinese people were also extraordinary. The COVID-19 pandemic broke out at the beginning of last year. You may recall that on the very day of the Lunar New Year, General Secretary Xi Jinping chaired a meeting to direct outbreak response. At that critical moment, more than 40,000 medical workers rushed to aid Wuhan in Hubei province, and manufacturers of masks, protective suits, and other medical supplies worked overtime to increase production. From medical staff to the People's Liberation Army, from scientific researchers to community workers, from volunteers to those who oversaw projects, people of all ages from all walks of life across China united to fight against the pandemic. Facing difficulties brought about by the economic downturn, the central government considerably reduced non-essential and non-obligatory expenditures and the provincial governments also cut spending to support those working on the ground as well as market entities. Many enterprises saw reduced profits but did their best not to cut jobs. Some employees who saw their salaries reduced stood together with the enterprises to tide over the difficulties. As the government work report reads, "Local authorities and government departments across the country kept in mind the big picture and shouldered their responsibilities. Market entities, over one hundred million in number, responded to shocks with fortitude and resilience. Our people worked hard and fought adversity in close solidarity and with the unyielding spirit of the Chinese nation."

It is fair to say that last year, the difficulties and challenges we faced were extraordinary, the achievements we secured were remarkable, the efforts we made were exceptional, and the success we gained was earned through resilience. The year 2020 is a year to remember in history. Thank you.

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CNR:

My question is about the GDP. Last year's government work report did not set specific GDP targets, but we noticed that this year's report has set an expected GDP target of over 6%. For what reasons is this? Given the complex and challenging economic environment both at home and abroad, could you please give some comments on our economic development targets? Thank you.

Sun Guojun:

Thank you. I will answer your questions. Last year's report did not put forward a quantitative target for GDP growth rate. The biggest reason was the great uncertainty. China's economic growth rate was 2.3% in 2020, which was a better-than-expected result and not easy to achieve. 

Implementing the guiding principles of the recent Central Economic Work Conference, this year's government work report sets an expected target for economic growth at over 6%. I will list three factors that have been taken into full consideration.

First, we have taken into account the recovery of economic activity. China's economy has gradually recovered since the second quarter of last year. The momentum of improvement has continued during the third and fourth quarters, so that we can expect a generally stable economic performance this year.

Second, we have taken into account the base figures. For example, due to the base figures for 2020, we can expect an obvious year-on-year rise in GDP growth in the first quarter of 2021. Statistically, GDP growth rates may show a falling trend from high to low throughout the year of 2021. However, this will only be the appearance of statistics. For each quarter, we expect GDP growth to be relatively stable compared to the previous quarter.

Third, we have taken into account the need to sustain healthy economic growth. When we set the expected GDP growth target for 2021, we need to take into account both the economic situation of this year and that of the next two years. The expected target should be well-aligned with the annual goals of subsequent years, so as to maintain long-term and steady economic development. Thank you.

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ThePaper.cn:

It is mentioned in the work report that the consumer price index (CPI) will rise by around 3% this year, followed by a steady increase in people's income. Can you explain how the steady increase in income will be achieved and to what extent our income will have to increase in order to catch up with the 3% increase in consumer prices? Thank you.

Sun Guojun:

Thank you for your questions. The CPI is directly related to everyone's daily life, and affects the basic wellbeing of the people. Keeping the CPI generally stable is an important objective of macroeconomic regulation and control, and an important sign that economic operation remains within a reasonable range. Last year, China's CPI rose by 2.5%, which was significantly lower than the expected target of around 3.5%.

This year, taking into account the carry-over effects and new price increases, the expected target for the rise in the CPI was set at around 3%, a downward adjustment from last year's expected target, indicating that the Chinese government is confident that the CPI will be controlled at a relatively low level. Food prices account for a high percentage of the CPI. In recent years, China has scored consecutive bumper harvests, so the supply of agricultural products has been guaranteed. This, coupled with the basic recovery of hog production capacity, is conducive to keeping prices stable.

This year's government report sets a target of steady growth in personal income. To increase people's income, the prerequisite is to achieve relatively full employment and strive to keep the growth of people's income basically in line with economic growth. At the same time, efforts should be made to raise the incomes of low-income groups, expand middle-income groups and promote common prosperity. Thank you.

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China News Service:

The government work report said that China has achieved a major strategic success in the fight against COVID-19. Could you elaborate on our achievements? What should be done next? Thank you.

Guo Wei:

COVID-19 is the most serious global pandemic seen for nearly a century. After the outbreak, the CPC Central Committee with Comrade Xi Jinping at its core made epidemic prevention and control the top priority. General Secretary Xi Jinping gave immediate instructions, took charge of the COVID-19 response, made people's lives and health the first priority, and adopted resolute measures in the battle against the novel coronavirus. Premier Li Keqiang chaired multiple meetings of the Central Leading Group for Novel Coronavirus Prevention and Control and made specific arrangements. Thanks to the resolute decisions made by the CPC Central Committee, the coordination of different localities and departments, and through the concerted efforts of the Chinese people, we achieved a major success in our response to COVID-19. In around a month, the fast spread of the virus was contained; in around two months, the daily increase of domestic coronavirus cases had fallen to single digits; and in approximately three months, a decisive victory was secured in the battle to defend Hubei province and its capital city Wuhan. In response to evolving epidemic dynamics, we made timely adjustments to our response approaches. We improved routine control mechanisms, reopened the economy and resumed normal life in low-risk areas, suppressed several regional outbreaks of the epidemic, and consolidated our achievements in controlling COVID-19.

We have withstood the test of COVID-19 and protected the health and safety of the Chinese people. More importantly, after the epidemic, Chinese people of all ethnic groups are more united as one, more patriotic, and more confident in the vitality and advantage of our national system and our state governance system, which will bring long-lasting effects to our future development.

As the pandemic continues around the world, the government work report has made arrangements for the next step under the requirements of the CPC Central Committee on epidemic prevention and control as well as socioeconomic development. It stresses a more coordinated way to carry out COVID-19 prevention and control and pursue socioeconomic development. I think, first, we're going to improve our routine prevention and control measures and boost our capacity with science-based precise measures. We will minimize the impact of our COVID-19 response on our work and life, increase testing for high-risk personnel and areas, and identify risks in a timely fashion. Second, we will increase our emergency response ability. We should ensure readiness and supply so that, in case of sudden outbreaks, we can identify control zones, and conduct COVID-19 testing, contact tracing and carry out medical treatment. Of course, we need to avoid a one-size-fits-all approach and imposing extra requirements in the name of epidemic control. Third, we will continue to promote vaccine research and its free roll-out. Currently, we have conditionally approved four COVID-19 vaccines for public use. In the next step, we will continue to intensify our efforts in R&D, improve vaccine production and supply, step up supervision of the supply chain, standardize vaccination procedures, and ensure the quality of the vaccine as well as safe vaccination. At the same time, we will continuously monitor and study mutant COVID-19 strains, and speed up our R&D of drugs and treatment, in order to increase our capacity for treating COVID-19.

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Phoenix TV:

We noticed the report mentioned that the government formulated and implemented macro policies to meet the urgent needs of market entities. What's the rationale behind that? Thank you.

Sun Guojun:

Thank you for your question, which is a question that particularly captures the key point. Facing the shocks of a severity rarely seen before, the CPC Central Committee pledged to coordinate the COVID-19 response with socioeconomic development, and adopt macro policies to minimize the impact of the pandemic. We carried out the task of maintaining security and stability in six key areas -- particularly job security, basic living needs, and the operations of market entities. We also maintained security in industrial and supply chains, food and energy, and the smooth functioning of grassroots government at the macro level. Our goals were maintaining security by keeping stability while pursuing progress, holding the bottom line and keeping the fundamentals of the employment and economy. Our goals last year were specific and clear. As is clearly stated in the government work report, we gave top priority to stabilizing employment and ensuring living standards, made decisive progress in the battle against poverty, and achieved our goals in building a moderately prosperous society in all respects.

How can we keep the bottom line and fulfil the task of "maintaining security in six key areas"? This requires a targeted approach based on the characteristics of the epidemic shock and the actual situation of the country. Unlike previous economic and financial crises, the epidemic directly hit the consumer side of the economy and a large number of micro-, small and medium-sized enterprises (MSMEs) and self-employed individuals. China has more than 30 million MSMEs and 90 million self-employed individuals, which support many of the 440 million urban employees and 290 million migrant workers. MSMEs and self-employed individuals are less risk-resilient market entities. We have to give priority to stabilizing employment and protecting people's livelihood. The policies we have implemented revolve around market entities, with the focus placed on helping less risk-resilient entities overcome difficulties. If there are problems with market entities and employment, there will be problems with people's livelihood. This includes tax cuts and fee reductions of more than 2.6 trillion yuan, including 1.7 trillion yuan in social insurance premium cuts and exemptions, mainly benefiting MSMEs. It also includes more than 7 trillion yuan in deferred principal and interest repayments on loans to MSMEs, as well as concessions from the financial system and a significant increase in loans from large commercial banks for the benefit of MSMEs. As last year's government work report mentioned, market entities must be able to sustain themselves and assure success for the future. We have helped to sustain market entities, which has laid a solid foundation not only for maintaining stable employment and meeting basic living needs, but also for economic recovery. 

In terms of actual results, our employment and economic growth indicators were better than expected last year, and we achieved greater results at a reasonable cost. Thank you.

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21st Century Business Herald:

My question is, the three-year campaign to prevent and resolve financial risks in 2020 has concluded, so how can we evaluate the results of this three-year campaign? Is the financial risk mitigation going to be a protracted battle? Thank you.

Sun Guojun:

Preventing systemic financial risks remains the permanent task of financial work, which is the same worldwide. The CPC Central Committee and the State Council have attached great importance to that. The Party's 19th National Congress has made forestalling and defusing major risks as one of the three critical battles, and preventing and resolving financial risks is an important aspect of it. Through concentrated efforts, a number of major risks have been effectively dealt with, important milestones have been achieved in the disposal of financial risks, financial risks have tended to shrink and are generally controllable, the financial order has improved significantly, and financial operations are more robust.

Meanwhile, we must also see that the current domestic and international economic and financial situation is complex and volatile, and the financial sector is still facing many risks and challenges. We should remain mindful of worst-case scenarios and make unremitting efforts to prevent and control all kinds of financial risks. 

First, we will improve the mechanism for managing financial risks, and see that responsibilities are fulfilled by all the stakeholders, including financial institutions and their shareholders, local governments and financial regulators. 

Second, we will focus on preventing and resolving the risks of small and medium-sized financial institutions, replenishing the capital of small and medium-sized banks through multiple channels and strengthening corporate governance.

Third, we need to improve laws and regulations governing the bond market and properly handle the debt default risks of enterprises. 

Fourth, we will continue to resolve existing risks, improve our ability to anticipate and foresee, prevent incremental risks, closely prevent and control external imported risks, improve the long-term mechanism for risk disposal, and resolutely guard against systemic risks. Thank you.

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Shenzhen TV:

We have noticed that the new FYP has dedicated a whole chapter to science and technology for the first time, emphasizing that technological self-reliance is the main pillar for China to develop its economy. What are the measures to be taken to realize technological self-reliance? Thank you.

Guo Wei:

The fifth plenary session of the 19th CPC Central Committee pointed out that we should make innovation the core of our modernization campaign, make scientific and technological self-reliance and self-improvement a strategic support for national development, and accelerate the development of science and technology.

Improving our technological and innovative ability is a systematic program and requires long-term work. This year's government work report underlines three aspects. 

First, we need to strengthen national strategic science and technology forces, including the construction of national laboratories, make good use of existing national science and technology resources, optimize the allocation of science and technology forces, and strengthen core technology research and development.

Second, we should strengthen basic research, which is emphasized in this year's government work report. Basic research requires much time and down-to-earth work. Therefore, we should have the spirit of "the blacksmiths of the past who would spend years forging the perfect sword," and create conditions for scientists to continue their hard work. To enhance basic research, we have a series of policies, including expanding investment in basic research, and improving the assessment and incentive mechanisms of technological results. 

Third, we will leverage market forces to encourage the enterprises to increase R&D investment. The government work report proposes an important policy, which is raising the extra tax deduction on manufacturing enterprises' R&D costs from 75% to 100%. That means enterprises can enjoy double deduction on R&D expenditure and are eligible for more income tax deductions. That is a great boost for enterprises to increase R&D spending.

Certainly, China's technological development must rely on international technological cooperation, which is what we have constantly upheld in the past. Looking forward, we will strengthen international cooperation on science and technology, and let technological development benefit the common well-being of humanity. Thank you.

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Beijing Youth Daily:

Under the impact of the COVID-19 epidemic, some macroeconomic policies introduced in the government work report last year were called unusual measures in unusual times. This year, we are carrying out regular epidemic controls, so what are your considerations in adjusting the macroeconomic policies? Thank you.

Sun Guojun:

Thank you for your question. The macro policies last year were formulated and implemented to meet the urgent needs of market entities. In terms of the targets and focuses of the macro policies this year, the Central Economic Work Conference held at the end of last year made clear plans for this year's economic work. The government work report implemented the guiding principles from the Central Economic Work Conference and made specific plans for macro policies. Generally speaking, we should ensure the continuity, consistency, and sustainability of macro policies this year, continue with and optimize the policy logic and focuses of last year, maintain necessary policy support, and avoid sharp turns in policy, so as to continue to ensure macro policies alleviate the difficulties of market entities.

This can be reflected in several aspects. For example, central and provincial-level governments will further increase funding allocations to prefecture- and county-level governments to assist local businesses and residents. The government work report highlights two notable increases. First is that the general transfer payments from the central government to local governments will be raised by 7.8% — which marks a significant increase over last year — while continued cuts will be made in central government expenditures. Second is the increased efforts to ensure employment, living standards and the operation of market entities at the grassroots level. This year, 2.8 trillion yuan of central government funding will be placed under the mechanism of directly allocating budgetary funds to prefecture- and county-level governments, meaning that financial resources will reach local governments more quickly. This year's government work report introduces many practical measures to ease the burden of market entities. Regarding tax cuts, for instance, we will continue to implement systematic tax cut policies, adjust and improve the temporary tax cut policies adopted last year, and extend the duration of some temporary policies. Meanwhile, we have introduced new policies for MSMEs, and policies granting extra tax deductions on R&D costs to encourage innovation. In addition, we will raise the VAT threshold for small-scale taxpayers from 100,000 yuan to 150,000 yuan in monthly sales, and halve the income tax of small and micro enterprises on annual taxable income below 1 million yuan, which are big discounts.

As for reducing enterprises' production and operating costs, we will cut the electricity rates for general industrial and commercial businesses, take firm measures to rectify irregular height and width limits and checkpoints that affect freight transportation, and lower the average broadband rates for small and medium-sized enterprises by an additional 10%. Many policies are aimed at MSMEs and self-employed individuals, which although they have seen improved operations, still face many difficulties. We need to provide more policy assistance to help them stand firm and achieve greater development. Thank you.

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Cover News:

Last year, 11.86 million new urban jobs were added in China, far exceeding the target set in last year's government work report. We've noticed that the target for this year is to create more than 11 million new urban jobs. How was the target set? And, is there some leeway in this employment target? Thank you.

Guo Wei:

Because of the COVID-19 epidemic and other serious shocks, employment faced particularly grave challenges last year. As mentioned before, in the first quarter of last year, China's economy shrank by 6.8% year on year. The government work report last year set a target of creating more than 9 million urban jobs, which was actually rather demanding, given the situation at the time. In order to achieve this goal, the CPC Central Committee and the State Council gave high priority to ensuring stable employment, and stepped up efforts to ensure employment, people's livelihood and market entities. In fact, ensuring market entities also helps ensure employment. Local governments and relevant departments have also proposed many ideas and introduced various policies to stabilize employment. As the economy recovered and policies yielded results, employment gradually recovered. Last year, 11.86 million new urban jobs were created, exceeding the target set in the government work report, and no large-scale unemployment occurred. This was not an easy task.

Employment still faces great pressure this year. Around 15 million new urban jobs need to be created, including those for over 9 million college graduates. The government work report, in accordance with the decisions and arrangements of the CPC Central Committee, continues to prioritize ensuring employment, and clearly states that improvements should continue to be made to the employment-first policy to enhance its performance. Based on the employment demand and economic recovery trend, the report sets the employment target at 11 million new urban jobs — the same as 2019 — and surveyed urban unemployment rate at about 5.5%. The economy is still recovering, market conditions are still complex and serious, and uncertainties are still on the rise. Under such circumstances, the targets are not easy to meet and greater efforts are required to do so. Thank you.

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Shangyou News:

The government work report is an annual guiding document for the exercise of government power. How did the drafting of the report respond to the concerns of the whole society and listen to and incorporate the views of various sectors of the society? Thank you.

Sun Guojun: 

Thank you for your question. In accordance with General Secretary Xi Jinping's requirement on soliciting public opinions in an open way, we pay great attention to the public's concerns and fully understand the opinions of people from all walks of life while drafting the government work report. The drafting process of the report was a process of gathering the wisdom of the people and pooling their efforts, as well as a process of planning specific policy measures, which was also introduced in the opening speech earlier.

Premier Li Keqiang collected views and suggestions by presiding over a number of symposiums, attended by representatives from non-communist political parties, chambers of commerce, public figures without party affiliation, experts and entrepreneurs, and representatives from the education, science and technology, culture, health, and sports sectors, as well as members of the public. Premier Li also solicited opinions by convening symposiums to analyze the economic situation. We were able to sort out 48 specific suggestions from the symposium attended by representatives from non-communist political parties, chambers of commerce and public figures without party affiliation.

We also extensively solicited suggestions from all localities and departments. After deliberation at the plenary meeting of the State Council, the revision of the drafted report was printed and distributed in accordance with due procedures to all localities, central departments in the Party, the government, the military, and people's organizations and some enterprises. Another thousand suggestions were then collected after this large-scale soliciting of views and suggestions.

In addition, we also collected opinions via media platforms. The event "Share your ideas with China's premier" was launched on www.gov.cn for the seventh year to solicit netizens' opinions by joining hands with 21 online media platforms. The event classified 22 topics and received nearly 1 million suggestions. After sifting through the comments, www.gov.cn submitted more than 1,200 representative views to the drafting team.

Meanwhile, during the drafting of the report, we paid great attention to social concerns and hot issues, and organized investigations into the prominent issues most concerned by the public so as to propose policy recommendations accordingly.

Generally speaking, despite the impact of the COVID-19 pandemic, we still adopted all possible methods to make sure the report reflects the true concerns of the public. Thank you.

Guo Wei:

I'd like to add that the proposals and suggestions reflected in the report are not limited to those collected during the drafting process. This year's report has implemented the guiding principles of the fifth plenary session of the 19th CPC Central Committee and the Central Economic Work Conference, making detailed arrangements for the 14th Five-Year Plan period and clear requirements for the work ahead. Actually, the process of formulating the documents of the fifth plenary session of the 19th CPC Central Committee and the Central Economic Work Conference was a process of soliciting opinions widely. General Secretary Xi Jinping extensively took in views and suggestions by presiding over meetings of relevant departments, localities, and professional fields, and held a series of special symposiums before the two abovementioned meetings. The documents of the two meetings had gone through repeated opinion-soliciting before the formal versions were presented.

This year's report was drafted in accordance with the decisions of the fifth plenary session of the 19th CPC Central Committee and the Central Economic Work Conference, and fully reflects people's desires and their wisdom after soliciting extensive opinions from people of all walks of life. The drafting process can guarantee that we uphold the leadership of the CPC in the economic and social development of our country, and ensure that various measures are implemented following the people-centered development philosophy, and ensure that the government makes decisions in a sound, democratic and effective way. We can see significant institutional strengths from the drafting process of the report. Thank you.

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Yicai:

The Report on the Work of the Government proposes to pursue a higher-standard of opening up. Will the opening of the financial market and capital accounts, as well as RMB internationalization remain your focus this year? What other measures will you take, and will the pace of opening up be changed? Thank you.

Sun Guojun:

Thank you for your question. According to the fifth plenary session of the 19th CPC Central Committee, China will advance the internationalization of its RMB through prudent measures, adhere to market-driven policies and enterprises' independent choices, and build a new mutually beneficial and cooperative relationship based on the internationalization and free use of the RMB.

In recent years, China has taken steady steps to realize capital account convertibility and RMB internationalization and actively develop the open economy. At present, direct investment has opened relatively high, investment channels of cross-border securities have expanded, and restrictions on cross-border financing have significantly eased. Cross-border use of the RMB has continuously increased, and RMB assets have become more attractive. According to the IMF's latest data, the RMB is already the world's fifth-largest official reserve currency.

Next, we will implement the guiding principle of the fifth plenary session of the 19th CPC Central Committee and the Central Economic Work Conference, steadily promote the orderly opening of capital accounts, and take prudent measures to advance the internationalization of the RMB. Specifically speaking, we will serve the real economy, accelerate trade and investment liberalization and facilitation, optimize relevant policies on the use of the RMB, and strengthen infrastructure for RMB internationalization. We will pursue a high-quality and two-way opening of financial markets, facilitate an orderly two-way flow of cross-border capital, and foster the sound and coordinated development of domestic and foreign currencies as well as offshore and onshore markets. Thank you.

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Red Star News:

Last year, the Chinese government released a series of policies to ensure stability on six fronts and security in six areas. What feedbacks did you receive from small and medium-sized enterprises when preparing the Report on the Work of the Government? How did those policies help them and what supporting policies, including policies regarding the alleviation of financial burden among MSMEs, will be extended this year? Thank you.

Sun Guojun:

I have mentioned this previously when answering questions regarding last year's macro policies and this year's policy focuses. Please let me add a couple of things. Last year, the difficulties rarely seen in history directly impacted Chinese MSMEs, as well as self-employed individuals, creating significant pressure. The macro policies of the central government helped them overcome these difficulties. Local authorities carried out a series of flexible policies according to practical needs, including reducing and waiving house rent to support MSMEs, as well as self-employed individuals. A sentence in the Report on the Work of the Government says, "Market entities, over one hundred million in number, responded to shocks with fortitude and resilience." All businesses have paid a lot; many of them didn't cut jobs, or only cut a small number of jobs, and made it through together with their employees. Last year was truly challenging both for the whole country and for every market entity. 

This year, in accordance with the deployment of the CPC Central Committee, we will continue to help market entities solve difficulties. Fiscal and monetary policies, and policies on employment and even reform all aim to stimulate business vitality, improve business environment, and provide further support to MSMEs, as well as self-employed individuals. Thank you.

Shou Xiaoli:

Thank you to our speakers, and also to all the friends of the press. That's all for today's press conference. Goodbye, everyone.

Translated and edited by Yang Xi, Li Xiao, Wang Qian, Zhu Bochen, He Shan, Liu Jianing, Lin Liyao, Fan Junmei, Zhang Tingting, Huang Shan, Xu Xiaoxuan, Li Huiru, Guo Yiming, Liu Sitong, 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.